The impact of an additional tax introduced in fiscal 2015 targeting mini cars (displacement less than 660cc) resulted in sluggish demand for those vehicles, affecting the domestic automobile market as a whole. Akebono’s business in Japan also saw a significant impact from weak automobile production in the form of lower earnings and a drop in sales of aftermarket products for export, and domestic net sales fell by ¥3.6 billion year on year, or 4.2%, to ¥83.1 billion. Looking at earnings, operating income fell 9.5%, or ¥0.3 billion, year on year to ¥3.3 billion with the impact of a drop in orders and an increase in R&D expenses for group companies overseas resulting from globalization efforts. This was despite the effects of lower performance-linked bonuses and other labor costs, rationalization of production and procurement, and other cost reductions. While there are uncertainties ahead, including the impact of the Kumamoto Earthquake on domestic demand, we expect both net sales and operating income in Japan to be about level with fiscal 2015.Review of Fiscal 2015Fiscal 2016 Strategy and OutlookJapanTOPICSBringing together the expertise in brake technology it has acquired through years of involvement in motorsports, Akebono has developed a 10-pot opposed brake caliper (five to each side, for a total of 10 pistons per caliper) that provides superb brake performance at high speed, under high brake load and high heat conditions, along with the comfortable, low-noise brake experience demanded in luxury high-performance vehicles. Intended for use in the large SUV class, the calipers accommodate larger brake pads to absorb the energy generated by high brake loads, to realize the industry’s first 10-pot production calipers with stable braking performance designed for passenger vehicles. These brakes represent the full-scale launch of Akebono’s European business.The product was first exhibited at the 44th Tokyo Motor Show 2015 held between October and November, 2015. Also on display were a 6-pot opposed high-performance brake caliper, as well as McLaren P1TM super car equipped with the Akebono brake system.Akebono Exhibits High Performance Brake Calipers for Large SUVs at the 44th Tokyo Motor Show 2015.10-pot opposed brake caliperAkebono’s booth at the 44th Tokyo Motor Show 2015Review of Operations22AKEBONO REPORT 2016

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