AKEBONO REPORT 2012

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10 AKEBONO REPORT 2012 Akebono Brake Industry Co. Ltd.　　　　Mexico■Stepping into the Growth Market in MexicoThe Akebono Group provides automotive manufacturers in Mexicowith products made at and exported from factories in North Americaand Japan. The aim of the Group’s expansion in Mexico is to streamlineits existing logistical structure and reduce logistic costs by manufacturingin the region. Planning the production kickoff for June2013 we will first begin with drum brake assembly then move on todisc brake manufacture. To achieve this we must promote the commonizationand standardization of production technologies.In Guanajuato state where our local factory will be situated there are 28 state-run vocational schools. We plan to recruit andtrain new associates from these schools which can provide trainingsystems tailored to the needs of companies hiring their graduates.After the Lehman Brothers bankruptcy in 2008 a number ofautomotive manufacturers began relocating their production plantsto Mexico. It is predicted that the average growth rate of the automobileindustry in Mexico will remain steady at approximately 5%over the next 10 years. By establishing a structure of “local productionfor local consumption ” we expect to achieve growth in Mexico leveraging the opportunities that country’s market offers.■ Thriving alongside Local Communities throughCooperative ActivitiesGuanajuato state is situated in the middle of Mexico and boasts aconcentration of car factories. In fact over 90% of the factories producingcompleted cars in the country are in that state and within a500 kilometer radius of each other.Although the region has a comparatively low crime rate becausethe finished products will be transported to the United States wewill be required to take considerable care to ensure security. We willselect and manage our local contractors carefully paying attentionto more than just costs. In particular we make sure that humanrightsabuses such as child labor violations will never occur alongour supply chain.For the inaugural year of the Mexico factory we are planning toallocate approximately 50 associates comprising about 47 locallyhired associates and three staff dispatched from Japan. As for themanager in charge of human resources and general affairs whichrepresents key function of the business we plan to appoint a localassociate from the beginning of operations and pursue the localizationof management.Santa Fe II industrial complex in Guanajuato state the place ourplant will be situated is joint public-private venture developed by thestate government and local companies and there are strict regulationson the conservation of environment and the appearance of thearea in place. In addition to complying with those regulations we willproactively contribute to improving the city’s amenities and workthrive alongside the local community.Outline of Akebono Brake Mexico S.A. de C.V.Location: Calle Plaza de la Paz 100 Int 211 Colonia Puerto Interior C.P. 36275 Silao Guanajuato MexicoRepresentative: Keiji YamanakaBusiness activities: Manufacture and sale of automotivebrakesPaid-in capital: ?400 million (scheduled to increase in stages)Date of establishment: April 13 2012Shareholders: Akebono Group 100%Outline of Akebono Brake Mexico S.A. de C.V. plant(planning phase)Site area: Approx. 110 000m2Start of production: June 2013Net sales: Approx. ?4.5 billion (fiscal 2015 forecast)* Based on fiscal 2012 forecasts by region releasedon May 8 2012 (please see page 47 for details)Net salesOperating income35.8107.096.3 99.5(1.1)0.4(5.4)0(Billions of yen)(Billions of yen)’10 ’11 ’12 (FY)(forecast)*’09’10 ’11 ’12 (FY)(forecast)*’09020406080100120(6)(4)(2)01Akebono’s Network in North AmericaAkebono Brake CorporationNorth American Head Office sales and marketingAkebono Brake Mexico S.A. de C.V.Manufacture and sale of automotive brakesAkebono Brake Clarksville PlantManufacture of disc rotors drum brakes corner modules andother brake componentsAkebono Brake Columbia PlantManufacture of disc brakes corner modules castings andother brake componentsAkebono Engineering CenterR&DAkebono Brake Glasgow PlantManufacture of disc brakes anddisc brake padsAkebono Brake Elizabethtown PlantManufacture of disc brakes drum brakes and disc brake padsNet sales and operating income includeinter-segment transactions.Making Forays into New Markets alongside Customers and Local CommunitiesGlobal Topics

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