AKEBONO REPORT 2013

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Making a difference with next-generationtechnologies?High-per formance commercial vehicle brakes? Organizing production bases to supply productsfor global platform systems? Cost-effective drum brakes tailored for emergingcountries? Local production for local consumption, local R&D andlocal procurement? Next-generation, energy-saving production technologiesand facilities for friction materialsn Continuous Drastic Cost Reduction and its GlobalImplementationWe seek to strengthen our competitiveness by pushing forward“C&S+t” initiatives (the aforementioned “Commonization andStandardization” plus enhanced product features (which we call“topping”), see also page 3) throughout our operations with theaim of making these operations more efficient and responsive toindividual needs. Our “C&S” efforts also involve comprehensivereviews of back office costs and expenses and the promotion oflocal procurement. Moreover, we will redouble our efforts tostrengthen our profit base in North America and Europe and tostreamline resource allocation. In doing so, we seek to establishan optimal global production structure for achieving greater costreductions.n Acceleration of Globalization Encompassing Japan, NorthAmerica, Europe and AsiaPositioning Japan as an information hub for the dissemination ofour manufacturing technologies and philosophy, we will expandand strengthen our operations in North America while workingtoward full-scale market entry for our high-performance brakesin Europe. Of course, we will continue to reinforce our operationsin emerging countries, particularly in growing Asian markets.We recognize that a “quality product,” if it is to be competitivein global markets, must excel not only in terms of performancebut also with regard to cost effectiveness and otherfeatures that can be tailored to satisfy the specific needs oflocal markets. To meet such needs, we will promote the policiesof “local production for local consumption” while pursuing R&Dat local bases and local procurement. Such efforts support ourdrive to expand our global supply network and global developmentstructure to achieve greater competitiveness.We also believe that, to achieve “Global 30,” diversity promotionand the enhancement of communication are essential.To be a successful global player, it is necessary our own growthto understand diverse perspectives. Therefore, we mustenhance our communication capabilities. Guided by this belief,we established the “Ai-Village” global training center with theaim of facilitating exchange among human resources from Groupmembers worldwide. “One Goal, One Team, One akebono,” thecorporate slogan established in 2011 expresses our resolve tofoster a sense of unity among associates throughout the Group.Going forward, we will strive to further promote diversity and nurturehuman resources highly capable of communicating in a multiculturalenvironment as we aim to become a successful globalplayer capable of playing a significant role throughout the world.We recognize that when it comes to competing on the globalstage, such human resources constitute our greatest strengthas they enable us to meet the needs of markets worldwide.Through the stable implementation of “aNF 30 - 2013,”Akebono seeks to become a truly global company that deliverssafety and security to people around the world, thereby establishingitself as a global brand of choice.Acceleration of globalization encompassingJapan, North America, Europe and Asia? Nurturing globally capable human resources? Expanding into emerging countries? Expansion of global supply network and developmentstructureaNF 30 - 2013’s Three Priority MeasuresContinuous drastic cost reduction and itsglobal implementation? Reducing costs through C&S+t initiatives? Strengthening the profit base of NorthAmerican and European operations? Reorganizing production and reallocatingresources in line with demand0102 03Module development3-component set: calipers,pads and rotorsFNC finished rotors ElectromechanicalbrakesEnvironment-friendly brakes Brakes for high-performancecommercial vehiclesCost-effective drum brakes

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