AKEBONO REPORT 2014

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Three Years since the Earthquake?“It’s Good to Be Alive!”TOPICSyear before. With Toyo System Co., Ltd., a company based in IwakiCity, Fukushima Prefecture, serving as the organizer, Toyota MotorCorporation and Akebono co-sponsored the event.A luxury car marketed by Toyota under the Lexus brand name,the LFA boasts extremely high performance, and no more than 500vehicles have been manufactured and made available around theworld. Six LFA vehicles were prepared for the course, to which atotal of 135 local students were invited. They were given the chanceto ride in the navigator’s seat, enjoying the thrill of high-speed turnsaround the circuit. Also,Akebono’s Mobile BrakeTechnology EducationalCenter was there to providea presentation on brakesystems. We will continueparticipating in this eventgoing forward.Addressing Management Issues to Ensure Crisis ControlAlthough we implemented initiatives that address issues identified Graduation of The 41st Scholarship Class: OvercomingDifficulties Since the EarthquakeMarch 15, 2014 saw the graduation of 15 scholarship students who havebeen working at Fukushima Manufacturing while attending junior collegeunder the Company’s vocational scholarship program. Akebono hosted acelebratory gathering for the graduates and their families, and PresidentNobumoto presented each graduate with a commemorative gift.The 41st group of students to pass through the scholarship programhad been assigned to their respective worksites just the day before theGreat East Japan Earthquake hit. Forced to relocate to evacuation shelters,the students volunteered to prepare rice balls for associates’ breakfastssince the kitchen was closed due to earthquake damage. Every morningin the wake of the Great East Japan Earthquake right away, welater began drawing up action plans to further strengthen ourdisaster response capabilities. Noting that the risk of supply chaindisruption is a cause of growing concern among our customers,we recognize the maintenance and reinforcement of our BusinessContinuation Plans (BCPs) to be a crucial management issue. Inparticular, we aim to secure our ability to avoid the suspension ofbusiness operations due to such emergencies as natural disastersor highly-contagious influenza pandemics. Taking into account theguidelines issued by Japan’s cabinet office and the Japan Auto PartsIndustries Association (JAPIA), we are enhancing our BCPs for locationsworldwide while encouraging our suppliers to formulate theirown plans.In fiscal 2013, we established the Business ContinuationManagement (BCM) Subcommittee under the Risk EvaluationCommittee, simultaneously upgrading BCPs to make them moreresponsive to major earthquake disasters. The reformulated plansaim to ensure the restoration of operations within 30 days of anevent. We have also undertaken risk analyses and reviews of countermeasureswhile implementing earthquake simulation drills.for a month, they prepared approximately 350 rice balls, doing their partto contribute to the restoration efforts. Also, the college buildings weredamaged by the earthquake so the students had to use temporary classrooms.Nevertheless, they worked hard to fulfill their dreams, with determinationand smiles on their faces, and successfully achieved their respectiveacademic goals. Words of Gratitude from a Representative of the GraduatesI can never forget the moment when the Great EastJapan Earthquake hit. I was full of anxiety as we faceda series of intense aftershocks. Gathered together in agymnasium, we huddled close for warmth. We encouragedeach other to hold on. Over the course ofthose days, I truly learned how selfless and kind peoplecan be. I also became acutely aware of how muchmy happiness is dependent on a peaceful daily existenceand how important it is to have people aroundyou. Having received a lot of relief supplies from other locations, I also realizedthat the “One akebono” spirit is alive and well. When I think of allthe ways that Akebono has helped us, I feel so grateful that I have beenable to be a part of this Company. Going forward, we will draw from ourexperiences as we move forward to fulfill our dreams.(Please also see the section entitled “Vocational Scholarship Programs”The post-earthquake graduating class of scholarship students on page 22.)Issues InitiativesBCP formulation? Assess BCP initiatives together with customers whileidentifying their requirements? Formulate BCP basic policies? Consider measures to ensure the restoration of mainstayproduction lines while securing substitute production facilities? Implement earthquake-resistance reinforcement work atfacilities and other countermeasures? Prepare BCP procedure documentations and practice themthrough training and drillsReview of crisismanagementstructure? Conduct drills focused on early response and recovery? Review crisis management structure and disaster responsemanuals, expanding their scope to cover such events asweather and traffic accidents that may impact safety andproduct delivery. Other issues for discussion include rules forthe setup and management of response headquarters, themeans of ensuring greater information visibility, andequipment needed for disaster responseClarify roles andresponsibilities? Review the scale of response headquarters as well asemergency response measures? Clarify matters to be confirmed at times of emergency (thesafety of associates, the status of shipments, etc.) as well aspersons in chargeIssues InitiativesVisualize workingconditions ofassociates? Track the attendance and absence of each associate? Establish a real-time update and share systemPromptcommunication? Collect information on the status of customers, etc., toforecast order trends in the medium and long terms? Collect information from external information sources? Ensure controlled sharing of information, appointing a personin charge to facilitate communication among basesReview of purchasing? Collect information on the supply chain on a global basis,confirm the interchangeability of parts and materials anddevelop an integrated database? Enhance C&S and design manufacturability to eliminate factorsthat hinder parts interchangeability? Drive C&S and localization activities for GPF operationsReform ofproduction systems? Reorganize global production systems (avoid overconcentration)? Promote C&S+t initiatives (enhance compatibility of productionfacilities)Facility check-upsand reinforcement? Continued implementation of anti-seismic reinforcement work? Establish a back-up functions for the response headquarters atAi-Village (see page 27)? Installemergency power supply systems at each site? Update satellite phonesManagement Issues Identified in the Wake of the EarthquakeThe lineup of LFA vehicles available for test drivesRuka YabukiRepresentative ofthe Graduates

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