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Akebono Group's Tax Strategy

The Akebono Group (which consists of Akebono Brake Industry Co., Ltd., the ultimate parent company, and its domestic and foreign group entities, hereafter collectively referred to as "Akebono") believes, beyond complying with the law and regulations, understanding and fulfilling corporate social responsibility is important in conducting business.
Therefore, we established standards of business conduct and ethics expected to all Akebono associates in "akebono Global Code of Conduct" and "akebono Global Standard of Behavior". As part of our CSR activities, Akebono has the following tax strategy in place to maintain and improve tax compliance:

1. Tax Optimization

Akebono respects the tax laws that are applicable in each country, including not only the letter but also the essence underlying each tax law.

2. Tax Risk Management

Akebono intends to manage tax risk by controlling and monitoring risks that may arise from failure to comply or interpret tax laws. Additionally, we will ask to consult with local tax experts as necessary to prevent any negative impact that may be caused by tax issues in countries where we operate.

3. Relationships with Tax Authorities

Akebono proactively communicates to maintain open and transparent relationships with tax authorities. We will file tax returns and pay tax obligations in a timely manner in compliance with the relevant local tax laws trying to the best of our ability to provide explanations and responses to questions from tax authorities. However, in the case of a tax dispute, we will promptly analyze the cause of the tax issue when raised in a tax audit and take the appropriate measure to prevent recurrences.

4. Adherence to the Base Erosion Profit Shifting ("BEPS") Initiative

Akebono is fully aware of the OECD's Base Erosion Profit Shifting ("BEPS") project and will act in accordance with the laws pursuant to the BEPS initiative in each of the relevant jurisdictions based on an appropriate understanding of the law. Particularly, with respect to the transfer pricing regulations, we will meet the local documentation requirements and request for Advanced Pricing Agreements ("APAs") from local tax authorities when the situation allows.

This document has been prepared as required under Paragraph 16(2) of Schedule 19 of the Finance Act 2016 in the UK.