AKEBONO REPORT 2011 Akebono Brake Industry Co. Ltd. 3Hisataka NobumotoPresident and CEOAkebono Brake Industry Co. Ltd.Production System (APS) we are standardizing everyaspect of operations ranging from which products aremade to manufacturing facilities and management.Incorporating product features according to local marketneeds and product application we will reinforce our costcompetitivenesswith our product development capability leveraging differentiated technologies. In addition we areengaged in various environmental preservation activities atmanufacturing facilities including the enhancement ofenergy efficiency based on reviews of manufacturing facilitiesfor heat molding products the streamlining of coatingprocess and the reduction of CO2 emissions.Referring to issues spotted upon the occurrence of thedisaster we will accelerate abovementioned initiatives. Tothat end we will shift from our highly concentrated businessstructure to a global production system reorganizingour production structure in order to secure an edge in burgeoningemerging countries. We understand the present isthe best time for investing in not only damage recovery butalso in future business development. Although we are currentlyreviewing our medium-term management plan we willmaintain the akebono New Frontier 30 Rolling Plan 2011 which includes the three major targets “advancement oftechnologies for the future ” “continuation of cost revolutionand expansion to global operation” and “accelerationof globalization (from Japan & North America to Japan North America Europe and Asia) ” with the aim of enhancingbusiness performance and corporate value.Pursuing Safety and Security on a Global ScaleWe place utmost importance on contributing to societythrough the provision of safety and security. We want ourassociates to be proud of their work and the Company backed by the knowledge that akebono offers safety andsecurity through its brakes. Based on this idea we haveengaged in Corporate Brand Management since 2005. Inorder to realize true globalization that encompasses peoplewith different nationalities languages educational backgrounds religions customs and value systems we have toaim for one goal as one team to become one and only companyfor our associates. To that end in 2011 we commencedactivities aimed at heightening our sense of unityunder the slogan “One Goal One Team One akebono.” Inthe midst of this initiative we experienced the Great EastJapan Earthquake.On March 22 2011 I visited Fukushima Manufacturingwith relief supplies and the intention of offering encouragementto our associates. Looking around however at associateswho were together in harmony and showing deepconsideration for others it was I who was moved andencouraged instead. This visit prompted me to hold a graduationceremony for the 38th class of technical workers atthe Global Head Office in Nihonbashi on April 10 2011.Our experience in dealing with this disaster made us trulyunderstand the importance of ensuring safety and security.Accordingly we intend to go back to the basics and actappropriately in accordance with akebono’s CorporateMission our fundamental philosophy covering all our activitiesfrom business management and environmental preservationto social contribution.To all our stakeholders we hope that through thisAKEBONO REPORT 2011 you will gain a wider understandingof the positive contributions that akebono is makingtoward sustainable development. We ask all of you for yourongoing support and we also welcome a frank exchange ofviews with you our stakeholders and invite your commentsabout this report.June 2011