AKEBONO REPORT 2012

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AKEBONO REPORT 2012 Akebono Brake Industry Co. Ltd. 3Hisataka NobumotoPresident and CEOAkebono Brake Industry Co. Ltd.As for our manufacturing facilities we are pursuing the“continuation of cost revolution and expansion to globaloperation” and plan to introduce a new cost-competitive yetenvironment-friendly production facility.As for the remaining target “acceleration of globalization(from a focus on Japan & North America to anapproach encompassing Japan North America Europe andAsia) ” we are positioning Japan as our information hub.From Japan we disseminate our technologies and manufacturingknow-how to locations worldwide. To this end weare expanding and strengthening the North American brakebusiness acquired from Robert Bosch LLC increasing ourshare of the European market by leveraging our high-performancebrakes and seeking to penetrate the growth marketsof emerging countries primarily in Asia.At present our operations extend to eight counties andoverseas sales represent 60% of our net sales. In addition 60% of our associates are working in overseas locations.Moreover we have decided to expand into Vietnam andMexico in 2011 further accelerating our globalization.These decisions were backed by the basic principle “localproduction for local consumption.”Surviving Global Competition throughCommonization and Standardization as well asby Incorporating Enhanced Product Features toPrecisely Meet Local Market NeedsTo succeed on the global level we believe that we mustbecome the company of choice so to this end we arestrengthening our manufacturing operations in Japan. Wehave been promoting “commonization and standardizationas well as incorporating enhanced product features tomeet local market needs” to achieve this aim. We are alsoaugmenting efficiency by introducing commonization andstandardization to every aspect of operations while we bolstercompetitiveness by incorporating product featuresaccording to local market needs.Japan’s manufacturing industry is confronting severe conditionson six fronts that include such factors as the appreciationof yen and restrictions on electricity consumption.However we believe that persistent efforts toward technologicalinnovation have established the current highstanding of Japan’s automobile industry in the global economy.The Akebono Group of course retains a wealth oftechnologies and experience accumulated over the 80years of its history along with innovative know-how gainedthrough the development of products that include highperformancebrakes provided to a Grand Prix racing team.We are confident that we can survive against global competitionby persistently improving our technologies which arebased on the above experience and know-how pursuing initiativesaimed at “commonization and standardization aswell as incorporating enhanced product features to meetlocal needs.”Recognizing the challenges before us we are determinedto achieve a sustainable growth.Creating New Value throughHuman Resource ExchangeConsidering the severe market circumstances in this country some may ask “why should you continue manufacturingin Japan?” I would answer “because this country still retainsan abundance of human resources that supports industrywith an immense wealth of Monozukuri value-added productmanufacturing knowledge.”As we move further toward globalization we will facilitatethe exchange of human resources among group membersaround the globe striving to share the knowledge andaccumulated experience of associates worldwide who mayhave different value systems and frames of reference. Indoing so we seek to create new value and to therebystrengthen our competitiveness.We believe that these initiatives will differentiate usfrom our competitors and ensure our survival on the globalstage. To realize the abovementioned human resourceexchange the akebono Training Center is being built in theheadquarters district (completion planned for December2012).To realize true globalization the Akebono Group shallunify under the slogan “One Team One akebono ” aimingfor “One Goal ” the achievement of akebono’s CorporateMission.We place utmost importance on contributing to societythrough the provision of safety and security. We hope that allour stakeholders will find that the AKEBONO REPORT 2012helps them gain a wider understanding of the positive contributionsthat Akebono is making toward sustainable development.We ask all of you for your ongoing support and wealso welcome a frank exchange of views with you our stakeholders and invite your comments about this report.June 2012

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