AKEBONO REPORT 2014

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Cautionary Statement Concerning OutlookCurrent plans, projections, strategies, business performance and other statements reported herein which are not historic facts represent forecasts made under Akebono’s assumptionsand views based on information available at the time this report was prepared. These statements, therefore, are exposed to risks and uncertainties, including but not limited to thoseassociated with the economic climate surrounding Akebono’s business domain, trends in market competition, exchange rates, tax systems and various institutions. Please note thatactual business performance may differ significantly from Akebono’s forecasts due to various factors.Akebono Brake Industry Co., Ltd. (“the Company”) and Group affiliates (“Akebono” or “the Group”) began preparing and disclosing theAKEBONO REPORT in fiscal 2009. Being aware of the need for accountability, the Company has since then issued the report every year withthe aim of providing a better communication tool with a variety of useful information for stakeholders. The AKEBONO REPORT is intended toincrease public understanding of the Group’s environmental policy and related activities and achievements while highlighting the Company’sCSR initiatives and presenting such financial information as a review of operational results and consolidated financial statements.We aim to present our value creation process to our stakeholders in an appropriate fashion. The International Integrated ReportingCouncil (IIRC), which provides an international framework for integrated reporting, has set out the following seven guiding principles. Ofthese, we strive for a presentation that especially considers “strategic focus and future orientation.” In addition, of the eight contentelements set forth by the IIRC, we put particular emphasis on disclosing “strategy and resource allocation.”Guiding principles1. Strategic focus and future orientation 5. Conciseness2. Connectivity of information 6. Reliability and completeness3. Stakeholder relationships 7. Consistency and comparability4. MaterialityContent elements1. Organizational overview and externalenvironment 5. Strategy and resource allocation2. Governance 6. Performance3. Business model 7. Outlook4. Risks and opportunities 8. Basis of presentationIn the 2014 report, we have worked to prepare a forward-thinking integrated report focused on introducing medium- and long-terminitiatives aimed at creating new value. Specifically, we present the details of top management’s policies while featuring a dialogue session,entitled “Toward Our Centennial,” in which project team members in charge of the 85th year anniversary commemorative events sharetheir visions of their own and the Company’s future. The dialogue participants are chosen from throughout the Group and are the kind ofcompetitive associates who will lead Akebono into the future, making these dialogues a good showcase for the real-life daily execution ofthe Company’s Corporate Mission and other top management policies. With regard to the disclosure of strategy and resource allocation,we include reporting on the progress of our latest midterm business plan “akebono New Frontier 30 - 2013,” which is aimed at achievingtrue globalizationThe report also features the details of our compliance structure (page 19), human resource nurturing aimed at developing globally capableassociates (pages 26 to 27), data on the diversity and work-life balance of associates (pages 32 to 33) and our disclosure policies (page 52).Moreover, the report covers our ongoing activities since the Great East Japan Earthquake (pages 12 to 13) while disclosing informationon our response to the new U.S. chemical substance regulations on brake friction materials (page 42), sharing with readers our recognitionof risk and approach to securing business continuity.Reporting ScopeReporting PeriodThis report covers the annual results data for the 2013 fiscal year (April 1, 2013 to March 31, 2014). In addition, certain information onactivities after the latter date is included to provide a better understanding of our ongoing efforts.OrganizationsActivity details and data are provided for Akebono facilities in Japan, North America, Europe, Thailand, China and Indonesia. Official namesof some Group facilities have been abbreviated. Please see pages 66 and 67 for a complete listing of Group locations.Publication date: August 2014 (Last publication: September 2013; Next scheduled publication: August 2015)Inquiries:Akebono Brake Industry Co., Ltd. Corporate Communications officeTel: +81 (0) 3-3668-5183Fax: +81 (0) 3-5695-7391URL: http://www.akebono-brake.comE-mail: akebono_pr@akebono-brake.comEditorial PolicyCorporate Information

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