2018/03/07 Final Report on Our Products

We deeply and sincerely apologize once again for causing substantial troubles to our customers due to the misconduct of Kobe Steel, Ltd. and its group companies (the "Kobe Steel Group"). We hereby report to you on our products as follows.

In response to the revelation of the misconduct, the Kobe Steel Group has conducted the quality self-inspections, covering the products manufactured or supplied from September 2016 to August 2017, consisting of (i) confirming whether manufacturing specifications as provided in the mill test certificates and other testing documents matched the specifications called for by the applicable public standards or customer specifications (specification check); and (ii) confirming whether actual testing / inspection results matched those recorded in the mill test certificates (document comparison).

In addition, the Independent Investigation Committee started on October 26, 2017 and completed its investigation into the quality self-inspections around the end of February 2018. As a result, the Independent Investigation Committee has not found any particular issues which affect appropriateness of the quality self-inspections, or which affect the quality of our products.

We will pursue fundamental reforms of our organizational systems and corporate culture by involving all of the Group's employees, led by the top management, in diligently and earnestly implementing each measure which the Group announced on March 6, 2018 to prevent a recurrence of the misconduct.