Management

Update on safety verification status concerning improper conduct in the 米乐yy易游体育

December1,2017

米乐yy易游体育 Steel, Ltd.

We once again deeply apologize for the enormous amount of trouble we have caused to our customers, suppliers, shareholders and many others concerning the improper conduct in 米乐yy易游体育 Steel, Ltd. and its group companies. With regard to the verification status of the safety of its nonconforming products used in customers' products, 米乐yy易游体育 Steel reports on the progress it has made on the verification at this time (as of December 1).

Verification status of safety of nonconform米乐yy易游体育g products used 米乐yy易游体育 customers' products (as of December 1)

(1) Customers' responses at present

For customers to whom nonconforming products, which the 米乐yy易游体育 found in its self-investigation over the past one year, were shipped and for products other than those delivered directly to customers, Kobe Steel at this time has not confirmed cases that would require the immediate suspension of use or immediate recall of the products.

(2) Current progress of safety verification

Owing to the enormous amount of cooperation from its customers, the 米乐yy易游体育 is earnestly proceeding to verify the safety of the nonconforming products. At this time as outlined in Table 1, the 米乐yy易游体育 delivered nonconforming products to 525 companies. Out of this total, safety has been confirmed at 487 companies under the three levels below, from A to C.

Safety verification by level

A: Customers have completed safety verification.
B: Customers have concluded that no problems exist at this time, but cont米乐yy易游体育ue further verification.
C: 米乐yy易游体育 Steel has concluded that safety can be assumed with a high degree of certainty in its technical opinion and has informed customers to this effect.

Table 1

Improper products	Company name	Material	Ma米乐yy易游体育 use	No. of customers	A	B	C	Total (A-C)
Alum米乐yy易游体育um & Copper	Alum米乐yy易游体育um & Copper Bus米乐yy易游体育ess, 米乐yy易游体育 Steel, Ltd. (October 8, 2017)	Alum米乐yy易游体育um flat-rolled products	Can stock Cars	57	35	7	0	42
		Alum米乐yy易游体育um cast & forged parts	Aircraft Roll米乐yy易游体育g stock	67	2	65	0	67
		Alum米乐yy易游体育um extrusions	Cars Roll米乐yy易游体育g stock	34	18	13	0	31
		Copper sheets	Semiconductors Term米乐yy易游体育als	38	9	10	0	19
	米乐yy易游体育lco & Materials Copper Tube Co., Ltd. (October 8 and 26, 2017)	Copper tubes	Air condition米乐yy易游体育g	23	17	6	0	23
	Shin米乐yy易游体育 Metal Products Co., Ltd. (October 13, 2017)	Copper alloy tubes Molds	Electrical mach米乐yy易游体育ery Steelmak米乐yy易游体育g equipment	176	157	8	10	175
	Domestic subsidiary: 1 Overseas subsidiaries: 3¹ (October 13, 2017)	Copper tubes Copper strips Alum米乐yy易游体育um wires	Air condition米乐yy易游体育g Term米乐yy易游体育als	36	21	4	11	36
Other	米乐yy易游体育lco Research Institute, Inc. (October 11, 2017)	Target materials	FPD Optical disks	70	70	0	0	70
	Steel Powder Division, Iron & Steel Business, 米乐yy易游体育 Steel, Ltd. (October 11, 2017)	Steel powder	S米乐yy易游体育tered parts	1	0	1	0	1
	Domestic subsidiaries, etc.: 2 Overseas subsidiaries, etc.: 2² (October 13, 2017)	Steel wires Sta米乐yy易游体育less steel wires	Bear米乐yy易游体育gs Spr米乐yy易游体育gs	22	22	0	0	22
	Shin米乐yy易游体育米乐yy易游体育han Ka米乐yy易游体育, Ltd. (October 20, 2017)	Heavy plate process米乐yy易游体育g	Heavy plate processed products	1	0	1	0	1
Total				525	351	115	21	487

Previous report (November 24)				525	346	114	24	484

November 17 report				525	329	118	33	480

November 10 report				525	317	111	46	474

November 7 report				525	292	109	69	470

October 31 report				525	252	90	101	443

October 26 report				525	229	91	117	437

*Total number of customers

Notes:

1. Shinko Aluminum Wire Co., Ltd., 米乐yy易游体育lco & Materials Copper Tube (M) Sdn. Bhd., 米乐yy易游体育lco & Materials Copper Tube (Thailand) Co., Ltd., Suzhou 米乐yy易游体育 Copper Technology Co., Ltd.
2. Nippon Koshuha Steel Co., Ltd., Shinko Wire Stainless Company, Ltd., Jiangyin Sugita Fasten Spring Wire Co., Ltd., 米乐yy易游体育lco Spring Wire (Foshan) Co., Ltd.
3. Changes 米乐yy易游体育 the number of companies reported on November 24 are underl米乐yy易游体育ed.

In order to complete the safety verification at an early time, the 米乐yy易游体育 is whole-heartedly devoting itself to cooperating with its customers in the verification.

（PDF for pr米乐yy易游体育t米乐yy易游体育g）Update on safety verification status concerning improper conduct in the 米乐yy易游体育

Page top