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Midterm Business Plan

We and our six subsidiaries (note) filed a formal application for a business turnaround in accordance with the specified certified dispute resolution proceedings (hereinafter the "Business Turnaround ADR Proceedings" ) on January 29, 2019 and the application was accepted on the same day. Since the acceptance, we and our six subsidiaries have worked on to establish the business turnaround plan. On July 18, 2019, Akebono entered into an investment agreement with Japan Industrial Solutions Fund II (hereinafter "JIS Fund" ). At the continuation of the creditors' meeting held on September 18 for a resolution on the Proposed Business Turnaround Plan, all the financial institutions agreed upon the Proposed Business Turnaround Plan and thus the Business Turnaround ADR Proceedings have been completed.

At the Extraordinary General Meeting of Shareholders held on September 27, each proposal necessary to receive a capital contribution from JIS Fund through third-party allotment was approved and adopted, causing the debt forgiveness from the financial institutions to take effect. The payment with respect to the issuance of Class A Shares for a total of JPY20,000 million from JIS Fund was completed on September 30 and new management structure was started on the same day.

We will re-scrutinize the specific execution plan and implementation timing of each measure under new management structure in order to move to the implementation stage in accordance with the business revitalization plan agreed in the business revitalization ADR procedure.

Note: Six companies are Akebono Brake Corporation, Akebono Brake Mexico S.A. de C.V., Akebono Brake Slovakia s.r.o., Akebono Corporation (Guangzhou), Akebono Corporation (Suzhou), and A&M Casting (Thailand) Co., Ltd.