AKEBONO REPORT 2018

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AKEBONO REPORT 2018 04growth by actively responding to changes in the automotive industry. At the same time, it hopes to meet the needs of society by incorporating measures that contribute to solving global environmental and social issues in its business activities.In November 2017, Akebono announced its "medium- to long-term vision" that lays out a direction for dealing with the global environment and seeking sustainable growth. Based on this medium- to long-term vision, Akebono will deepen its knowledge of "Friction and Vibration, their Control and Analysis," a company strength, and focus on the development of brake technologies that can be deployed not only in automobiles, but in a wide range of fields such as rolling stock including bullet trains and industrial machinery, while taking on new challenges caused by further changes in the business environment. We will also develop products that leverage our sensor technologies to improve the safety and security of social infrastructure and increase operational efficiency. At the same time, we will implement measures to reduce the environmental impact and improve the workplace safety of our production facilities.• Technological Development: Next-generation friction materials: We are pursuing research on plant-derived materials from the viewpoint of utilizing sustainable resources for the raw material used in friction materials and changing over to substances with low environmental impact. We are pursuing wide-ranging research and development on brake dust, an expected future problem, including unharmful materials for friction materials and technology for measuring brake dust.• Technological Development: Next-generation electro-mechanical/high performance brakes: Akebono researches the practical application of electro-mechanical service brakes that will replace hydraulic brakes in the future and the next-generation "MR fluid brakes” which does not rely on friction. Akebono also develops pneumatic brakes to be used in large European trucks.• Technological Development: Sensor technologies (Infrastructure & Mobility business): Akebono develops sensor products for a wide range of fields including automotive, rolling stock, civil engineering, agriculture, and energy by utilizing its sensor technologies. In the future, Akebono intends to expand A Company that Grows with Local Communities and its AssociatesSince 1965, Akebono has operated a Vocational Scholarship Program that allows students to earn qualifications by attending junior colleges and vocational schools while working. More than 3,000 graduates have already made use of this program. In May 2018, "Akebono Nursery School” (commonly known as “Ai-Kids”) was opened as a part of our “workstyle reforms” and to enrich our benefits program for associates. We solicited the advice of graduates when opening the nursery school. In addition, Akebono has promoted health management and was designated as a "Company with Excellent Health Management 2018 (White 500)" in recognition of its initiatives in this area. I hope to continue to implement various measures to maintain our growth with local communities and associates.its business by not only providing products, but also solutions such as information and services.• Manufacturing capacity increase/Productivity improvement: In the improvement and renovation of facilities and development of new construction methods, we are committed to rigorous energy conservation and seek to eliminate CO2 emissions during production in 2050. We are also improving production and logistics efficiency and safety. Iwatsuki Manufacturing, which introduced a new plating facility in May 2018, has made the process as compact as possible and has increased energy saving, production efficiency, and safety.Since Akebono’s founding, "providing safety and security" to customers has been the basis of all its corporate activities. Although we have caused our customers a great deal of concern due to production problems that occurred in the United States, we are now on track to recovery from last year thanks to the various measures we have taken. While it is said that the automotive industry enters a period of change once every one-hundred-years, I view this as an opportunity to change how we work and return to Akebono’s Corporate Mission, forge ahead with Monozukuri (manufacturing excellence) and develop human resources with the aim of sustainable growth.We ask our stakeholders for their continued support and for your frank opinions and comments on this report.June 2018Hisataka NobumotoPresident and CEO