Management

Announcement on share transfer of equity method affiliate

May 13, 2021

Kobe Steel, Ltd.

Kobe Steel, Ltd. announces that it has sold a part of shares that it holds in its equity-method affiliate OSAKA Titanium Technologies Co., Ltd. (OTC) (code number 5726: First section of the Tokyo Stock Exchange). Kobe Steel sold 1,650,000 shares through a negotiated transaction. With this sale of shares, Kobe Steel’s ownership ratio of voting rights in OTC has decreased from 19.43% to 14.95%, which led to the exclusion of OTC from the equity-method affiliates of Kobe Steel.

The shares sold in this transaction are 1,650,000 shares for which the selling method was undetermined in the Announcement of Planned Share Transfer of Equity Method Affiliate, as of January 29, 2021.

1. Number of shares sold, status of shares before/after the sale, and selling method

(1) Number of shares sold	1,650,000 shares (ownership ratio of voting rights: 4.48%)
(2) Number of shares before the sale	7,150,000 shares (ownership ratio of voting rights: 19.43%)
(3) Number of shares after the sale	5,500,000 shares (ownership ratio of voting rights: 14.95%)

2. Outline of the equity-method affiliate transferred

(9) Financial status and operating results of the company concerned for the past 3 fiscal years
(1) Company name	OSAKA Titanium Technologies Co., Ltd.
(2) Domicile	1 Higashihama-cho, Amagasaki, Hyogo, Japan
(3) Name of representative & title	Yasuaki Sugizaki President & Representative 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 yen
(6) Date of establishment	November 26, 1952
(7) Major shareholders & ratio of shareholding	Nippon Steel Corporation:			19.43%
	Kobe Steel, Ltd.:			14.95%
	Sumitomo Corporation:			2.35%
(8) Relationship between the listed company and the company concerned	Capital relationship	Kobe Steel holds 14.95% of the shares of the company concerned.
	Personnel relationship	One auditor of the company concerned is concurrently an employee of Kobe Steel.
	Business relationship	Kobe Steel purchases titanium sponge and titanium ingot from the company concerned.
Accounting period	Year ended March 2019		Year ended March 2020	Year ended March 2021
Net assets	34,305 million yen		34,921 million yen	29,708 million yen
Total assets	80,928 million yen		76,518 million yen	77,743 million yen
Net assets per share	932.23 yen		948.99 yen	807.32 yen
Net sales	43,666 million yen		38,189 million yen	17,053 million yen
Operating income	2,308 million yen		1,152 million yen	△3,425 million yen
Ordinary income	2,422 million yen		1,322 million yen	△2,843 million yen
Net income	△1,322 million yen		736 million yen	△5,083 million yen
Net income per share	△35.95 yen		20.02 yen	△138.15 yen
Dividend per share	5 yen		5 yen	0 yen

3. 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 announcement once the impact becomes clear.

(Note) The information on this web site is presented "as is." Product availability, organization, and other content may differ from the time the information was originally posted. Changes may take place without notice.

Page top