Home > About Us > Corporate Social Responsibility > Sustainability Report > Sustainability Report 2009 > Relations with Shareholders and Investors

Relations with Shareholders and Investors

The Kobe Steel Group strives to increase its corporate value as a whole by pursuing business development from a medium- and long-term perspective. As part of these efforts, we of course place a high priority on returning profits to shareholders, and recognize the importance of enhancing the transparency of our operations through open communication with all stakeholders, including shareholders and investors. To that end, we are committed to the correct and timely disclosure of information and to its widespread publication.

Returns to Shareholders

Kobe Steel places a high priority on returning profits to shareholders, and is committed to increasing its overall corporate value by pursuing business operations from a medium- and long-term perspective.

The distribution of profits is decided comprehensively on the basis of various factors, including the company's current financial condition; trends in business performance; and prospective demand for capital. Dividends are determined with an eye toward achieving continuous and stable distribution, taking into consideration such factors as each period's business results and the payout ratio.

Concerning internal reserve funds, we strive to improve profitability by ensuring adequate investment for future growth and make continuous efforts to improve and strengthen our financial structure.

For the foreseeable future, we will distribute profits according to business results with a target dividend payout ratio of 15% to 25% of our consolidated net profit.

Surplus funds are distributed according to our Articles of Incorporation, which are determined by the Board of Directors on the basis of Company Law 459, Article 1, and Company Law 460, Article 1.

Accordingly, dividends are in principle paid out by Board order twice a year, at the ends of the first and second terms, as stipulated by the Articles of Incorporation. For dividends to be paid out on any other date, the date must be designated separately by the Board.

Business reports for shareholders (in Japanese)

Postcards reporting quarterly results

Information Disclosure

To maintain the trust and support of shareholders and investors over the long term we take very seriously our responsibility to provide information, and are working hard to make timely and appropriate disclosures of corporate information and financial data.

Information disclosure is made in strict observance of statutory disclosure standards and based on stock exchange rules for the timing of disclosures. It is our aim to have the company's business conditions and activities widely understood for an accurate appraisal of corporate value, through the active, prompt and ongoing issuing of disclosable information relevant to investment decisions, even in cases where the timing rules do not apply.

Annual report

Shareholdings

Shareholdings by Type of Ownership

Communicating with Shareholders and Investors

	Communicating with Shareholders

Shareholders' meetings are seen as the forum for direct communication with shareholders. To encourage as many as possible to attend, we send out invitations well in advance and choose dates that do not conflict with other major shareholders' meetings. Shareholders are able to vote via the Internet (including cell phones).

To help shareholders deepen their understanding of the Kobe Steel Group, we also initiated factory tours in fiscal 2007. To date, we have sponsored a tour of our iron and steel operations at Kakogawa Works, and a tour of our aluminum operations at our Moka Plant. Other tours will be held at various locations in the future.

Shareholder tour at Kakogawa Works

Shareholder tour at Moka Plant


	Communicating with Institutional Investors

Briefings on financial results are given four times a year for institutional investors and securities analysts in Japan, to give them a better understanding of our management policies, operating results and financial position. For those overseas, a range of investor-relations (IR) activities includes regular visits to institutional investors by management teams.

The company's IR staff work to maintain ongoing communication with institutional investors and securities analysts by responding to requests for information and by paying individual visits.


	Communication with Individual Investors

Through the Kobe Steel website (

www.kobelco.com), we place online our financial statements, annual reports and other information for individual investors. This Sustainability Report is available on the Environmental Management site

In fiscal 2007, we also began publishing Japanese quarterly reports in postcard form and began sponsoring explanatory meetings aimed at individual investors in an effort to further deepen public understanding of the Kobe Steel Group.

Internet IR site

The Kobe Steel Group will continue to strive for greater information disclosure and quality improvements in communication. By promoting IR activities we hope to maintain the trust of shareholders and investors for many years to come.