AKEBONO REPORT 2016

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aNF30-2016 Fundamental StrategiesFinancial TargetsaNF30-2013 Midterm Business Plan2013-2015New aNF30-2016 Midterm Business Plan2016-2018Global30Future VisionBuilding a foundation for achieving Global30- Technology differentiation- Drastic cost reductions- Acceleration of globalization in Japan, North America, Europe and AsiaBy introducing product-based business units and deploying them globally, we aim to take on new fields and rebuild our management foundationsLong-term Goals- Achieve Global30Fiscal 2020 Goals- Operating income of 10%Return to a sound financial condition1Rebuilding North American operations2Establishing global networks based on product-based business units3281.3Expanding high performance brake business and recreating European operationsFY2015Actual(Billions of yen)FY2016FY2017FY2018aNF30-2016Profit (loss) attributable to owners of parentOperating incomeNet salesEquity ratioNet D/E ratioFree cash flow11.6%4.2(2.6)12.3%4.01.414.1%3.52.016.6%2.93.5271.3265.0255.0(3.8)(19.5)1.68.010.00.23.05.0Shift priority from achieving sales targets to sustainable growthMidterm Business Planakebono New Frontier 30 – 2016Akebono has established a new midterm business plan, “akebono New Frontier 30 – 2016 (aNF30-2016)” ending with fiscal 2018. Goals of the new midterm plan include 1) rebuilding North American operations, 2) establishing global networks based on product-based business units, and 3) expanding high performance brake business and recreating European operations. By achieving these goals, Akebono aims to return to a sound financial condition and facilitate sustainable growth.AKEBONO REPORT 20167