2026 New Year's Message from President and CEO Yoshihiko Katsukawa

Last year, Kobe Steel proudly marked its 120th anniversary. This significant milestone was achieved owing to the unwavering dedication of all members of the Kobelco Group, who have boldly embraced challenges to fulfill the expectations of our diverse customers while navigating a series of upheavals in industries and society. However, what truly matters is not the past but the future. As we take pride in having celebrated our 120th anniversary, we must look ahead and move forward.

Let’s make the year 2026 the start of a new chapter for the Kobelco Group.

Turning our attention to the global situation, Russian invasion of Ukraine has become prolonged, and the conflict between Israel and the Palestinian territories in the Gaza Strip remains unpredictable. Meanwhile, the industrial sector is currently undergoing significant changes, including a slowdown in electric vehicle (EV) sales, particularly in Europe and the Unite States, the withdrawal of the U.S. from the Paris Agreement for the second time, and a shift within the EU, which has prioritized decarbonization but is now seeking to balance this with the need to enhance competitiveness. We will continue to see new developments in the business environment both domestically and internationally, alongside a further decline in domestic demand and the rise of protectionist policies in various countries.

In this rapidly changing environment, it is crucial that each and every member of the Kobelco Group is not held back by the past and embraces a future-oriented mindset that welcomes change and does not fear failure. When everyone in the Group collaborates as one team—Team KOBELCO—the possibilities become limitless. Without this willingness to change, the Kobelco Group may not survive its next 100 years. I visited many business locations both in Japan and overseas last year, and I was delighted and impressed by the transformations taking place in various workplaces. In 2026, I hope to visit as many business locations as possible, time permitting. Let's continue to evolve this year as well.

Lastly, I would like to touch on safety and compliance. As I mention every year in my New Year's address, safety and compliance are the cornerstones of our business operations and take precedence over everything else. The safety and health of our colleagues is of utmost importance. In 2017, we experienced quality-related misconduct. To prevent repeating past mistakes, I urge everyone at the Kobelco Group to stay vigilant about safety and compliance.

I would like to end my New Year’s greetings by wishing that 2026 will be a year of great progress for all of our Group employees and their families. Please stay safe and healthy.