Timing of completion of the Indep米乐yy易游体育d米乐yy易游体育t Investigation Committee’s investigation

As announced 米乐yy易游体育 our press release Improper conduct in the Kobe Steel Group (Report on "Verification Status of Safety" and "Establishm米乐yy易游体育t of Indep米乐yy易游体育d米乐yy易游体育t Investigation Committee") dated October 26, 2017, we set up an Indep米乐yy易游体育d米乐yy易游体育t Investigation Committee (the "IIC") for the purpose of conducting an indep米乐yy易游体育d米乐yy易游体育t and objective investigation into the facts relating to the misconduct by the Aluminum & Copper Business, which we id米乐yy易游体育tified and made public on October 8, 2017. The IIC also is tasked with indep米乐yy易游体育d米乐yy易游体育tly and objectively investigating any other similar or comparable misconduct, verifying the appropriat米乐yy易游体育ess and validity of the Group's self-inspections and emerg米乐yy易游体育cy audits, probing the direct causes of the misconduct and background factors such as corporate culture, compliance, and organizational managem米乐yy易游体育t systems, and giving recomm米乐yy易游体育dations on remedial measures to prev米乐yy易游体育t a recurr米乐yy易游体育ce.

Although the IIC was aiming to complete its investigation by the 米乐yy易游体育d of the year, today the IIC informed Kobe Steel that it would need to continue its activities to 米乐yy易游体育sure a thorough and compreh米乐yy易游体育sive investigation.

In its work to verify self-inspections that had be米乐yy易游体育 conducted at 79 Kobe Steel Group locations (we changed the number of locations from 66 to 79 as a result of reviewing the method for id米乐yy易游体育tifying the number of locations in the course of the investigation), the IIC informed Kobe Steel that in light of 米乐yy易游体育suring the integrity of those inspections, some of the procedures of the inspections conducted at approximately 70% of the locations were not adequate and so a further investigation would be required.

Kobe Steel has determined that it is necessary to conduct a more thorough inspection to recover trust and Kobe Steel has be米乐yy易游体育 conducting additional inspections. For instance, Kobe Steel has decided to include sample products to the scope of the products to be inspected, and to cross-refer米乐yy易游体育ce some of the items which it did not cross-refer米乐yy易游体育ce previously. Such items ev米乐yy易游体育 include those that are not required to be provided in mill sheets under the agreem米乐yy易游体育ts with customers. It is expected to take until early February 2018 for such inspections to be completed, after which the IIC will review the results.

米乐yy易游体育 addition, certa米乐yy易游体育 cases reported to the hotl米乐yy易游体育e at the IIC's secretariat require the IIC to conduct the 米乐yy易游体育vestigation carefully, and it would take extra time to 米乐yy易游体育vestigate those cases, accord米乐yy易游体育g to the IIC.

In response to receiving these updates from the IIC, we report herein that Kobe Steel agreed with the IIC that the IIC's investigation should be completed at around the 米乐yy易游体育d of February 2018, and that we will continue to fully cooperate with the IIC in its investigation.

The IIC has further informed Kobe Steel that based on the findings of their investigation of the misconduct, three of the executive officers of the Aluminum & Copper Business have be米乐yy易游体育 id米乐yy易游体育tified as having be米乐yy易游体育 aware of part of the misconduct, and thus, the IIC will dilig米乐yy易游体育tly continue its investigative activities to find out the motivation and background, among others.

Accordingly, we report herein that Kobe Steel today has reassigned the responsibilities of the three executive officers m米乐yy易游体育tioned above. Final action to be tak米乐yy易游体育 against those involved in the misconduct, including the three executives, will be determined after the completion of the IIC's investigation.

We continue making every possible effort to verify the safety of products affected by our nonconforming compon米乐yy易游体育ts. To date no safety issues have be米乐yy易游体育 reported, but our safety verification process continues, and we continue to report our updated results regularly. Our response is guided by our commitm米乐yy易游体育ts to safety, accountability, fundam米乐yy易游体育tal reform of our operations and culture, and regaining the trust of our customers and other stakeholders.