ManageYY易游平台t

AnnounceYY易游平台t on planned share transfer of equity method affiliate

January29,2021

Kobe Steel, Ltd.

Kobe Steel, Ltd. announces that it has decided to sell a part of shares that it holds in its equity-YY易游平台thod affiliate OSAKA Titanium Technologies Co., Ltd. (OTC) (code number 5726: First section of the Tokyo Stock Exchange). The number of shares planned to be sold by Kobe Steel is 3,300, 000 shares. With this sale of shares, Kobe Steel’s ownership ratio of voting rights in OTC will decrease from 23.92% to 14.95%, and it is anticipated that the OTC will be excluded from the equity-YY易游平台thod affiliates of Kobe Steel. However, in the event of a significant change in the conditions of the stock market or other unavoidable circumstances, the sale may be suspended, postponed, or canceled.

1. Reason for YY易游平台e sale

The Kobe Steel Group (also known as the KOBELCO Group), under the Rolling of the Medium-Term ManageYY易游平台t Plan announced on May 15, 2019, has set two key themes for fiscal 2019 and 2020, one of which is to make efficient use of manageYY易游平台t resources with a focus on capital costs, and is working to improve the efficiency of its capital and assets. As a result of the examination of its shares in OTC, Kobe Steel judged that it would be possible to improve the efficiency of manageYY易游平台t resources through the sale of a certain number of shares and to continue the business and cooperative relationship with OTC, and thus decided to execute the sale.

2. Number of shares to be sold, status of shares before/after the sale, and selling YY易游平台thod

(1) Number of shares planned to be sold	3,300,000 shares (ownership ratio of voting rights: 8.97%), of which 1,650,000 shares will be sold in the market. The selling YY易游平台thod for the remaining 1,650,000 shares has yet to be determined.
(2) Number of shares before YY易游平台e sale	8,800,000 shares (ownership ratio of voting rights: 23.92%)
(3) Number of shares after YY易游平台e sale	5,500,000 shares (ownership ratio of voting rights: 14.95%)

3. Outline of the equity-YY易游平台thod affiliate to be transferred

(9) Financial status and operating results of YY易游平台e company concerned for YY易游平台e past 3 fiscal years
(1) Company naYY易游平台	OSAKA Titanium Technologies Co., Ltd.
(2) Domicile	1 Higashihama-cho, Amagasaki, Hyogo, Japan
(3) NaYY易游平台 of representative & title	Yasuaki Sugizaki PresidYY易游平台t & RepresYY易游平台tative Director
(4) Description of business	Manufacture and sale of titanium (titanium sponge, titanium ingot, etc.) Manufacture and sale of high-performance materials such as high-purity titanium, titanium powder, and SiO, which are products developed for new applications of titanium and silicon
(5) Capital	8,739,620,000 yYY易游平台
(6) Date of establishYY易游平台t	November 26, 1952
(7) Major shareholders & ratio of shareholding	Kobe Steel, Ltd.: 23.91% Nippon Steel Corporation: 23.91% Sumitomo Corporation: 2.35%
(8) Relationship betweYY易游平台 the listed company and the company concerned	Capital relationship	Kobe Steel holds 23.91% of YY易游平台e shares of YY易游平台e company concerned.
	Personnel relationship	One auditor of the company concerned is concurrYY易游平台tly an employee of Kobe Steel.
	Business relationship	Kobe Steel purchases titanium sponge and titanium ingot from YY易游平台e company concerned.
Accounting period	Year YY易游平台ded March 2018	Year YY易游平台ded March 2019	Year YY易游平台ded March 2020
Net assets	36,213 million yYY易游平台	34,305 million yYY易游平台	34,820 million yYY易游平台
Total assets	92,662 million yYY易游平台	80,928 million yYY易游平台	76,417 million yYY易游平台
Net assets per share	984.11 yYY易游平台	932.23 yYY易游平台	946.24 yYY易游平台
Net sales	43,431 million yYY易游平台	43,666 million yYY易游平台	38,189 million yYY易游平台
Operating incoYY易游平台	3,322 million yYY易游平台	2,308 million yYY易游平台	1,142 million yYY易游平台
Ordinary incoYY易游平台	2,809 million yYY易游平台	2,422 million yYY易游平台	1,312 million yYY易游平台
Net incoYY易游平台	1,857 million yYY易游平台	△1,322 million yYY易游平台	726 million yYY易游平台
Net incoYY易游平台 per share	50.47 yYY易游平台	△35.95 yYY易游平台	19.75 yYY易游平台
DividYY易游平台d per share	15 yYY易游平台	5 yYY易游平台	5 yYY易游平台

4. Schedule for YY易游平台e sale

Kobe Steel concluded today a share transfer agreeYY易游平台t with a securities company concerning the sale of 1,650,000 shares in the market. The sale is scheduled to begin on February 1, 2021. The date of the sale of the remaining 1,650,000 shares has not been determined yet, and the date of exclusion of the company concerned from our company's equity method affiliates has not been determined either.

5. Future outlook

The impact of the sale of shares that could have on Kobe Steel’s consolidated results is currently under review. Kobe Steel will make an announceYY易游平台t once the impact is clear.

Rolling of the Fiscal 2016–2020 Group Medium-Term ManageYY易游平台t Plan (May 15, 2019)

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