we are better able to solve the challenges confronting customers.Although we are best known for excellence in automotive brakes Akebono is well diversified. Our product lines include brake systemsfor rolling stock industrial and construction machinery two-wheeledvehicles and other related equipment. Our extensive knowledge offriction and vibration gives us the expertise to continue to expand oursales to many industries. By meeting the technical demands of customersboth in and outside the motor vehicle industry we will becomea more competitive friction material and brake maker for all ofour customers.Moreover our independence from automakers enables us to makemanagement decisions free of external constraints. Leveraging thisstatus and applying a medium- to long-term perspective we decidedto become involved in Formula One racing in 2007. Although we mustremain more vigilant about the business climate compared withsuppliers affiliated with automakers we are committed to pursuingtechnological development with an eye to achieving breakthroughsover the next 10 or 15 years. For example our recent decision toinitiate the supply of brakes for high-performance (HP) vehicles wasaimed at acquiring new technologies and expertise. Entering this field we confronted extremely challenging requirements in terms of bothtechnology and costs. Nevertheless we are steadily securing a footholdin the market.Clarifying Akebono’s Future VisionToday the automotive industry is seeing a proliferation of significanttechnological advances including eco-friendly alternative fuel andelectric vehicles the realization of automated driving and advancementsin vehicle safety and connectivity. Against this backdrop automotivemanufacturers are seeking greater capital efficiency and cost competitivenessby the development of globally unified vehicle platforms andmodular component designs. This in turn has prompted many autoparts makers to divest non-core businesses while seeking out M&Aopportunities to bolster their technology and global market share.Amid the rush to consolidate to become mega suppliers Akebonointends to remain a specialized independent manufacturer with leanorganization that will enable us to serve the needs of our customersmore effectively. We can use size and sharp focus to differentiateourselves from competitors by fully leveraging our expertise andresponding to our customers’ requirements quickly.Akebono’s distinctive strengths are as follows.Our lean organization allows us to make and implement decisionsquickly. This ability somewhat offsets are our restricted financialresources compared to many of the mega companies. So we must becareful to ensure that every decision is in line with principles of selectionand concentration. This should increase our focus on customerneeds and improve the accuracy and timeliness of our response so thatTop MessageDespite Rapidly Changing Industry Conditions We Will Expand Globally and Succeed by LeveragingOur Position as an Independent Manufacturer

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