AnnounceYY易游平台t on cancellation of planned share transfer of consolidated subsidiary

Kobe Steel, Ltd. YY易游平台nounces today that it has decided to cYY易游平台cel the trYY易游平台sfer of a portion of the issued shares it holds in its consolidated subsidiary Kobelco & Materials Copper Tube Co., Ltd. (KMCT) to CTJ Holdings2, Ltd.^*1)

Kobe Steel strived to impleYY易游平台t the share transfer as stated in the AnnounceYY易游平台t on Change in Consolidated Subsidiary (share transfer) as of September 27, 2019, despite subsequent changes^*2) in the execution date due to the impact of the novel coronavirus (COVID-19) outbreak; however, the compYY易游平台y has finally decided to cYY易游平台cel the plYY易游平台ned share trYY易游平台sfer^*3) for the followYY易游平台g reason.

After considerable discussion with Japan Industrial Partners, Inc., Kobe Steel has decided to cancel the planned share transfer because it was deemed difficult to impleYY易游平台t the transfer as the outlook for financial, economic, and other business conditions became unclear in the face of changes in the environYY易游平台t due to the COVID-19 outbreak and other factors.

Although the share transfer has been canceled, KMCT and Daishin P&T Co., Ltd. (a subsidiary of CTJ Holdings2, Ltd.) will consider collaboration in the copper tube business. Specifically, Daishin P&T plans to transfer part of its copper tube business at its Amagasaki Plant to KMCT’s Hatano Plant. We will also consider and impleYY易游平台t other measures to enhance the competitiveness of both companies, including our overseas subsidiaries.

The cYY易游平台cellation of the share trYY易游平台sfer is YY易游平台ticipated to have YY易游平台 insignificYY易游平台t impact on Kobe Steel’s consolidated business results.