Aiming for zero major accidents and the elimination of lost-worktime and non-lost-worktime accidents, we are carrying out independent safety activities focusing on the priority measures listed at right.

1. 1.Identification and elimination of unsafe actions that have been overlooked
   • Focus on operator actions during safety patrols.
   • *Focus on preventing normalization of unsafe actions that violate safety rules. In particular, moveable states, cranes and slinging, and work in high places that involve the risk of serious accidents
2. 2. Identification of unsafe equipment and work environments that have been overlooked, and reduction of risks
   • Check for any work that is performed under unsafe conditions.
   • *Managers check the workplaces from the perspective of protecting the operators, and carry out measures that incorporate workplace opinions. Reduction of hazards such as movable objects and high places and pits, and isolation from hazards
3. 3. Training and instruction to increase awareness of the need to observe safety rules
   • Prepare work procedures based on prioritizing of safety rules, and conduct regular training.
   • *Preparation of work standards where the safety rules are clear (practice checks) and training activities to ensure thorough adherence to safety rules (focused on communication of safety rules and preventing fading awareness of safety rules)

1. 1.Follow-up by checking the progress of voluntary safety audits
   • Support is provided to enable each manufacturing site to establish and further strengthen a system in which it can continue its own efforts to identify and resolve improvement issues based on voluntary safety audits.

(Note) Measures to prevent contamination by foreign matter in processed foods in the Foodstuffs Division is listed in its initiatives for quality control.

In order to reduce quality risks, we are carrying out system development in cooperation with the DX Promotion Department, and are conducting risk reduction and standardization of ordering operations for sales in Japan and overseas subsidiaries through quality monitoring.

1. 1. Quality risk reduction activities for sales in Japan and overseas subsidiaries
   • Check the actual work conditions in ordering operations through quality monitoring, recommend low-risk work methods, and prepare work procedures.
   • Study (in cooperation with the DX Promotion Department) system development to prevent wrong materials in order placement operations to suppliers other than Nippon Steel for sales in Japan.
2. 2.Quality risk reduction activities at Group companies
   • Identify quality risks in each process from order receiving to shipping at each company, and study and carry out countermeasures to reduce risk.
   • Carry out activities primarily for eliminating manual work (utilizing barcodes, automatic transfer of inspection values, etc.) and standardizing the recordkeeping for manual work in each process.
3. 3.Activities to support sales and affiliated companies
   • Check the quality control levels at subcontractors and business partners, and review their selection standards.

1. 1.Thorough guidance and continuous monitoring of key suppliers in the Mobility Business Department and the Functional Materials Department
2. 2.Establishment of a technology quality assurance manager in the division, carrying out quality action for automobile manufacturers and other customers, and constructing a quality management instruction system for each supplier

In the Food Quality Assurance Department, we are carrying out measures against foreign matter inclusion (including allergens) in processed foods.

1. 1.Stringent selection of processing plants, and thorough analysis and tracing of ingredients, including sub-materials
2. 2.Ensuring the safety of quality elements in more advanced products (consumer standards)
3. 3.Carrying out quality management through close cooperation with processing bases for items procured in Japan
4. 4. Expansion of support for human resources development including at Group companies (further improvement of safety measures through the use of highly skilled employees)

This department is addressing the challenge of reducing risk and eliminating quality risk by digitalizing all operations.

1. 1.“N-SCM” integrated inventory management system
   • Automation of inventory management in repeating transaction fields in order to produce fast responses to shipping problems caused by missing materials or wrong materials
2. 2.“SPOD” improved order entry system
   • Standardization of order placement operations and strengthening of the check functions to improve efficiency, and to eliminate human errors
3. 3.“EXCS^®” new coil center system
   • Updating and consolidating the core business management systems at NST subsidiary coil centers

The NST Group has clarified its basic attitude to emphasize compliance in accordance with the NST Corporate Philosophy, Management Principles, and Employee Code of Conduct. Based on these policies, we implement and operate internal control systems appropriately, further strengthen our corporate governance, endeavor to ensure “compliance with laws and ordinances,” “reliability of financial reporting,” and “effectiveness and efficiency of operations,” and aim to improve them continuously.

NST adopted the Basic Policy about Internal Control System at a meeting of the Board of Directors, and we have constructed and operate an internal control system in the NST Group. We have established functional divisions in charge of risk management in each field, including the Internal Control & Audit Department, an organization under the direct control of the President. This department is in charge of constructing, operating, and planning internal control systems, and of internal audits.
We have also appointed a Risk Management Supervisor in each division and Group company. This person is responsible for planning and carrying out autonomous internal control activities in all divisions of NST and at subsidiaries. Based on this system, we have constructed and are operating a PDCA cycle for the internal control system as described below.