WebsiteDetailed data on each initiative is disclosed in our website.BookletMatters related to priority themes are concisely discussed in the booklet.ContentsEditorial Policy We compiled the AKEBONO REPORT 2016 based on “integrated thinking,” a concept proposed by the International Integrated Reporting Council (IIRC). In doing so, we have focused on actual examples of the Akebono Group’s operations, the kind of growth it aims to achieve and how it will fulfill its commitment to delivering safety and peace of mind through brake products.To effectively convey above mentioned content to our stakeholders, we prepared both printed booklet and web editions of the AKEBONO REPORT 2016. In the printed booklet, we put greater emphasis on reader-friendliness while narrowing the content to matters that we want to communicate to a broader range of stakeholders. We hope that readers wanting further details on topics presented in the printed booklet will visit our website and gain a deeper understanding of our initiatives.It is our hope that the aforementioned articles help readers understand Akebono’s determination to lead the way in realizing unparalleled competitive-ness as a specialized manufacturer with a lean organization and independent status. In preparing this edition, we referred to the Guiding Principles set forth by the IIRC as well as the Global Reporting Initiative Sustainability Reporting Guidelines (G4) and ISO 26000. (Last publication: August 2015; August 2016Publication date :Akebono Brake Industry Co., Ltd.Inquiries:+81 (0) 3-3668-5183Tel :+81 (0) 3-5695-7391Fax :The AKEBONO REPORT 2016 web edition is available on ourWebsite:http://www.akebono-brake.comURL :The AKEBONO REPORT 2016 booklet presents financial and non-financial information on the Akebono Group’s fiscal 2015 initiatives with a focus on readability.For detailed data on each initiative, please visit our website.Cautionary Statement Concerning OutlookCurrent plans, projections, strategies, business performance and other statements reported herein that are not historic facts represent forecasts made under Akebono’s assumptions and views based on information available at the time this report was prepared. These statements, therefore, are exposed to risks and uncertainties, including but not limited to those associated with the economic climate surrounding Akebono’s business domain, trends in market competition, exchange rates, tax systems and various institutions. Please note that actual business performance may differ significantly from Akebono’s forecast due to various factors.Reporting PeriodThis report covers the annual results data for the 2015 fiscal year (April 1, 2015 to March 31, 2016). In addition, the report contains references to some ongoing activities undertaken after the latter date to provide readers with a better understanding of latest status of initiatives.OrganizationsJapan: Akebono Brake Industry (including development, manufacturing, production engineering, purchasing, quality assurance, automotive sales, aftermarket sales departments and administrative departments as well as Tatebayashi Foundry), domestic Group companies including four production plants (Yamagata, Fukushima, Iwatsuki and Sanyo), Akebono Brake Industrial Machinery & Rolling Stock Component Sales, Alocs Corporation, Akebono Research & Development Centre, APS and Akebono 123, and Akebono Advanced Engineering; Overseas: ABC, AEC, ABE, ABG, ABCT and ABCS (U.S.); ABM (Mexico); AENV (Belgium); AESA, AASA and AECE (France); AEG (Germany); AAE (UK); ABSK (Slovakia); AKBT, A&M (Thailand); two Chinese subsidiaries (Guangzhou and Suzhou); AAIJ (Indonesia); and AAVH (Vietnam). Please refer to “Akebono Locations” on pages 45 to 46 for the formal names of those organizations that are presented in the above listing as abbreviations.Definition of Fiscal YearTo present content in a consistent and easy-to-follow manner, in this report, the period referred to as the fiscal year represents the fiscal period from April 1 to March 31 of the next year. The financial statements are also presented on a fiscal year basis.About AkebonoAkebono’s Journey /Akebono in Figures1Corporate Communications Officewebsite.7Midterm Business Plan9Top Message11Financial and Non-Financial Highlights13Value Creation ModelValue Creation based on Our Corpo-rate Mission / Markets and Products21Review of OperationsJapan / North America / Europe / Asia / R&D and Quality Control29Initiatives for Society and EnvironmentEnvironment / Purchasing /Human Resources and Diversity / Workplace Safety and Health / Social Contribution37Corporate Governance43Economic ReportConsolidated Balance Sheets /Consolidated Statements of Income and Comprehensive Income /Consolidated Statements of Changes in Net Assets (Summary) / Consolidated Statements of Cash Flows49Corporate InformationDirectors and Officers / Company Outline / Shareholder and Investor Information / Akebono Locationsnext scheduled publication: August 2017)About AkebonoMidtermBusiness PlanTop MessageFinancial and Non-Financial HighlightsValue Creation ModelReview of OperationsInitiatives for Societyand EnvironmentCorporate GovernanceEconomic ReportCorporate Information6AKEBONO REPORT 2016

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