Kobe Steel, Ltd.【JP:5406】Stock Price

Kobe Steel Ltd. operates diverse business segments and provides a wide range of products and services. Below are its main business segments.

**Steel and Aluminum Segment**

Kobe Steel manufactures wire rod, bar steel, thin plate, thick plate, and aluminum sheet. Key affiliated companies include Nippon High Frequency Steel and Shinko Steel Wire.

**Materials and Forgings Segment**

This segment provides cast and forged steel products, aluminum alloys, and magnesium alloy castings. Key affiliated companies include Shinko Kaisha Aluminum Components (Suzhou) Ltd.

**Welding Segment**

The company handles welding materials, welding robots, and welding equipment. Qingdao Shinko Welding Materials Ltd. is a key affiliated company.

**Machinery Segment**

Kobe Steel manufactures energy and chemical-related equipment, nuclear-related equipment, and various compressors. Cobelco Compressor and Shinko Zoki are key affiliated companies.

**Engineering Segment**

The company provides various plants, new transit systems, and chemical and food-related equipment. Shinko Environmental Solutions is a key affiliated company.

**Construction Machinery Segment**

Kobe Steel manufactures hydraulic excavators, mini excavators, and crawler cranes. Cobelco Construction Machinery is a key affiliated company.

**Power Segment**

The company supplies electricity and heat. Cobelco Power Kobe is a key affiliated company.

**Other Segments**

The company operates in high-pressure gas container manufacturing and general trading. Shinko Shoji is a key affiliated company.

Through these diverse businesses, Kobe Steel contributes to a wide range of industries.

Kobe Steel's medium-term management plan for fiscal years 2024 through 2026 prioritizes three key objectives: strengthening earning power, pursuing growth, and advancing toward carbon neutrality (CN). Through these initiatives, the company aims to reinforce its business foundation and achieve sustainable growth.

The company targets a stable return on invested capital (ROIC) of 6% or higher, with a future goal of 8% or above. It will concentrate management resources on growth opportunities. Additionally, through CO₂ emission reductions, Kobe Steel aims to create new business opportunities and achieve a 30-40% reduction in CO₂ emissions by 2030 compared to fiscal year 2013 levels.

As part of its growth strategy, Kobe Steel is advancing the "KOBELCO-X" transformation program. This initiative strengthens sustainability-focused management, transforms the company into a more attractive enterprise, and establishes a business organization capable of meeting future challenges.

The company pursues growth through restructuring its business foundation, capturing new demand, and expanding its business scope. In particular, it views business expansion related to energy transition and new demand as growth opportunities, focusing on expanding into new business areas centered on machinery and engineering operations.

Kobe Steel is also strengthening its financial foundation. By the end of fiscal year 2026, it targets a shareholders' equity ratio in the low 40% range and a debt-to-equity ratio around 0.7x, advancing a financial structure transformation that supports business growth.