AKEBONO REPORT 2015

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Our Forward-Looking InitiativesBasic Policy for the Distribution of Earnings and DividendsCeaselessly pursuing the better control of noise and vibration Akebono will leverage its wealth of expertise in this field to realize:1) overwhelming cost competitiveness through commonization andstandardization and the development of low-cost brakes; 2) unrivaledproduction engineering for global environmental friendliness to createsuch products as lightweight/electro-mechanical brake systems and toaccommodate the unique needs of electric/hybrid vehicles; 3) developmentof the next-generation cost-competitive manufacturing facilitiesthat generate lower environmental burdens; 4) further penetration ofthe market for brakes for high-performance vehicles; and 5) advancedtechnology capable of enabling the Company to seize a larger shareof the compact and low-price car market particularly in emergingcountries. In these ways we will enhance our competitiveness.Akebono has positioned the return of profits to shareholders as animportant management issue. Accordingly the Company adheres to abasic policy of ensuring long-term sustainable returns to shareholderswith comprehensive consideration given to its business performanceTo secure greater responsiveness to globalization the AkebonoGroup has positioned its domestic locations to collectively act as the coredriver for the global dissemination of its monozukuri value-addedmanufacturing technologies. At the same time the Group will furtherexpand and reinforce its operations in North America which has becomeits most significant regional segment. Moreover the Group will step upexpansion in the European market with high-performance brakes whilesecuring a greater presence in promising markets in emerging countries primarily in Asia. In addition the Group will augment its global supplynetwork and R&D structure thereby becoming a more competitivesupplier capable of accommodating a growing trend toward automobileproduction employing global platform (GPF) systems.and the dividend payout ratio as well as to maintaining retained earningsat the level necessary to make investments for securing sustainablegrowth.P Fiscal 2015 PoliciesInitiatives Objectives Policies1From Iwatsuki Manufacturingthrough ABC to the world1 Re-creating Iwatsuki Manufacturing as a coreplant to establish future manufacturing standards(the model line) for all Akebono Group membersFully adopting the Akebono Production System(APS) to reduce redundancies2 Rolling out the “model line” at ABC (NorthAmerica) to reclaim Group’s largest profit source3 Disseminating the “model line” at locationsaround the world2Re-establishing our Europeanbusiness foundation1 Boosting sales of brakes for Europeanhigh-performance vehicles1 Applying technologies developed through thesupply of brakes for Formula One racing cars2 Strengthening local development andproduction networks2 Boosting production capacity of Arras andlaunching Slovakia plant3 Securing at least ?5.0 billion in cash Reducing operational expenses to secure fundsfor new businessesReducing inventories in particular work-in-progressDividends and per Share Information(FY)2007 2008 2009 2010 2011 2012 2013 2014Fiscal 2015(forecasts)Net income (loss) per share (?) 61.85 (151.65) 17.80 39.75 (24.25) 3.90 18.24 (45.83)Net assets per share (?) 463.82 254.82 330.76 355.88 326.39 350.52 396.4 405.23Cash dividend per share (?) 10.00 5.00 5.00 10.00 10.00 10.00 10.00 10.00 10.00Payout ratio (%) 16.2 ? 28.1 25.2 ? 256.3 54.8 ? 88.7Number of shares outstandingat end of term110 992 110 992 135 992 135 992 135 992 135 992 135 992 135 992