Supplementary Material for Integrated Report 2018

Disaster Prevention Initiatives

The Kobe Steel Group makes groupwide efforts to comply with laws and regulations, implement measures to prevent facility accidents, and prepare for natural disasters.

The Group has established disaster prevention systems and holds regular emergency drills. We are actively undertaking these measures to prevent accidents from occurring and to minimize damage if a disaster does strike.

We will continue to raise each and every employee's awareness for disaster preparedness while continuing to carry out disaster prevention activities throughout the Group.

Companywide Disaster Prevention Management Policy

Companywide Disaster Prevention Management Policy

Makoto Mizuguchi

Makoto Mizuguchi
Chief officer responsible for
companywide disaster prevention
(Senior Managing Executive
Officer, Kobe Steel, Ltd.)

We engage in disaster prevention activities, with the aim of becoming a corporate group that is trusted by the community and society.

We offer our sincere sympathy to everyone affected by the 2018 Osaka Earthquake and the torrential rain in Western Japan.

At the Kobe Steel Group, disaster prevention activities are carried out according to three basic principles: prevention of facility accidents, strengthening preparations for natural disasters, and compliance with disaster-related laws and regulations.

To prevent facility accidents, we share case studies of disasters and take thorough measures to prevent a recurrence, including of similar accidents. To strengthen preparations for natural disaster, we take structural measures such as seismic reinforcement and anti-flood measures and also implement response drills for large-scale earthquakes. Regarding compliance with disaster-related laws and regulations, we have verified the status of compliance at each business location through document and on-site reviews.

In preparing for large-scale earthquakes that are anticipated to occur in the near future, such as a Nankai Trough Earthquake and a large-scale earthquake expected to hit the Tokyo area, we will continue to take every necessary action, not forgetting the lessons learned from the Great Hanshin Earthquake of 1995 and the Great East Japan Earthquake of 2011. In this way, we aim to be a corporate group that is resilient to disasters and that has the trust of the community and broader society.

Companywide Disaster Prevention Management Structure

At the Kobe Steel Group, the head office, business units, business locations, and Group companies all promote disaster prevention management activities under the supervision of the president and the chief officer for companywide disaster prevention.

Companywide Disaster Prevention Management Structure

Companywide Disaster Prevention Management Structure

Kobe Steel Group Disaster Prevention Meeting

We organize the Kobe Steel Group Disaster Prevention Meeting every year in an effort to share information and strengthen disaster prevention initiatives. A total of 110 employees from 46 Group companies took part in our fiscal 2017 meeting. This year we invited an instructor from the Kobe Fire Department, who gave a talk, along with a video entitled “Case Studies of Recent Fires and their Countermeasures.” We also renewed our awareness of the importance of disaster prevention, including responding to J-ALERT (a national early warning system), dissemination of fire laws and regulations, and sharing information on case studies.

Address by the deputy chief officer responsible for companywide disaster prevention

Address by the deputy chief officer responsible for companywide disaster prevention

Talk by a member of the Kobe Fire Department

Talk by a member of the Kobe Fire Department

Countermeasures for Facility-Related Accidents

The Kobe Steel Group makes every effort to prevent fires and other accidents before they occur.

In fiscal 2017, we worked mainly on preventing accidents with electrical equipment. In the future, we will keep striving to prevent accidents throughout the Kobe Steel Group, including by sharing information in and outside the company; making thorough efforts to prevent recurrences of accidents, including similar accidents; and taking special initiatives in coordination with voluntary action plans from industry associations.

Regular Emergency Drills

We conduct regular emergency drills at each of the Kobe Steel Group's business locations including works, plants and offices.

On June 6, Kobe Corporate Research Laboratories conducted a Hazardous Materials Safety Week PR drill together with the Kobe Fire Department. Fire Department members and about 120 employees of the Laboratories participated in the drill, which was based on a scenario of a chemical leak with several injured persons.

Joint drill with the Kobe Fire Department

Joint drill with the Kobe Fire Department

Business Continuity Plan (BCP)

The Kobe Steel Group is proceeding with the formulation of a BCP, the basic policies of which are: (1) ensuring the lives and safety of employees, and (2) ensuring the supply of products and services to customers.

As one initiative in that effort, we are conducting seismic reinforcement and taking anti-flood measures according to the location conditions of each site, in order to reduce damage from natural disasters such as earthquakes and tsunamis. Also, in the event of heavy damage being sustained due to a large-scale earthquake, etc., we will establish a disaster response headquarters in the head office and provide support to business locations with the aim of achieving a quick restoration.

Disaster Response Headquarters Organization

Organization Chart of Disaster Response Headquarters

On March 8, 2018, we carried out drills for establishing a disaster response headquarters using transceivers, which are effective for communication during a disaster, based on the scenario of damage over a wide area caused by a major earthquake in the Nankai Trough. In order to be prepared in the event of an emergency, we will continue to train and hold drills to ensure even smoother responses in the future.

KOBELCO 1.17 Walk

To prevent memories of the Great Hanshin Earthquake from fading, we held the KOBELCO 1.17 Walk on January 20, 2018 to check the routes employees use for commuting in the event that public transportation becomes unavailable due to an earthquake or other disaster.

The 81 participants each took a Map to Help You Return Home in a Disaster, which had been distributed in advance, and walked while noting areas near the route that would be submerged in a tsunami as well as the location of convenience stores, public toilets and other points of interest. We plan to continue this event at the Kobe Head Office and Tokyo Head Office in the future.

KOBELCO 1.17 Walk

Disaster Prevention Inspections

We hold on-site disaster prevention inspections of Kobe Steel Group facilities in order to verify compliance with disaster prevention laws and regulations and to minimize risks that could potentially lead to accidents. Inspections were conducted at seven Group companies in fiscal 2017, and no significant violations were found.

Going forward, we will continue to reinforce the disaster prevention management structure throughout the Kobe Steel Group.

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