Akebono Brake Industry Co., Ltd.

Message from the President & CEO

Our associates work together as one to meet the needs of society.
This is our mission.

We live in an era of great transformation for the automotive industry, and the Akebono Group is transforming as well. As the development of electric and autonomous vehicles accelerates, the brake sector is seeing the emergence of new customers, new products, and new markets. The foundations that will enable us to respond to these changes are the technologies that we have developed throughout the more than 90 years since our founding, and the individual associates who carry on and develop those technologies.

In October of 2019, Akebono established a new management structure and took on a range of business structural reforms under our Business Turnaround Plan. Even amid the difficult circumstances of the COVID-19 pandemic, we have been steadfast in implementing the Turnaround Plan with measures such as the restructuring of facilities and optimization of production. We have also been working steadily to strengthen our business foundations for future sustainable growth.

We require the efforts of all associates to achieve the Business Turnaround Plan and future growth beyond. I have established “5 Attitudes” to serve as guidelines for associates: (1) Always have a strong “customer first” mindset; (2) Proactively propose solutions, and get the job done with aspiration and grit; (3) Have a deep awareness of cost reduction; (4) Adopt the “5-Gen Approach”: Genchi, Genbutsu, Gennin, Genri, Gensoku (“Go to the actual place, see the actual things and confirm the actual facts. Then take action based on fundamental theory according to decided principles”); and (5) Accurately evaluate and reward associates for their efforts, results, contributions and behavior.

With all associates working together and leveraging the technologies that Akebono has developed, I am convinced that the Business Turnaround Plan will succeed. The “5 Attitudes” are the guidelines to that end, and I believe the attitudes themselves must serve as an expression of our organization's strength.

I also believe that as a monozukuri (manufacturing excellence) company, contributing to the world's safety and peace of mind is part of our core mission. For many years we have been promoting sustainability, and we are now embracing SDGs as well. We also engage in initiatives to reduce our environmental burden, such as developing friction materials that halve carbon emissions in the manufacturing process, or brakes that reduce drag resistance to boost energy efficiency in conventional and electric vehicles. In these ways, Akebono's technologies will strongly benefit society going forward.

As we pursued these efforts, however, in February 2021 we announced that there had been inappropriate conduct in periodic inspection reports in Japan for certain products. Although the products in question had no issues in terms of performance, the fact that we had failed to keep our promises to our customers was a serious concern, and the case caused a major loss of trust among our customers and stakeholders. Going forward, in order to win back this trust, I will take the lead together with all of Akebono's executive officers, devoting all our efforts to strengthening the company's compliance and governance.

With this in mind, we have set organizational objectives for fiscal 2022 as follows: 1. Reorganization and strengthening of corporate management foundations; 2. Achievement of the Business Turnaround Plan by revising and implementing measures in response to changes in the business environment; and 3. Acquisition of new business and enhanced competitiveness for future sustainable growth. By achieving these objectives, all associates can diligently work together to renew trust in the company and achieve the Business Turnaround Plan, thereby ensuring our growth into the future.

I would like to express my sincere gratitude for your support and look forward to your continued understanding and support going forward.

Yasuhiro Miyaji
President & CEO
Akebono Brake Industry Co., Ltd.

Akebono's Corporate Philosophy & Mission

Realizing our mission as a comprehensive brake manufacturer, we aim to create a better future for all

Corporate Philosophy: “SEIWAKON” “SEI” Sincerity in relations: Treat others with integrity “WA” Harmony in actions: Act with appropriate measure “KON” Spirit in accomplishments: Achieve results with determination

Akebono's corporate philosophy was established in 1964. In the same year, the organization's in-house magazine “SEIWAKON” was established. The magazine continues to be published, and thus, our philosophy is widely understood and embraced by our associates to this day.

Corporate Mission: Through “Friction and Vibration, their Control and Analysis,” we are determined to protect, grow and support every individual life

Our Corporate Mission was established in 1999 in recognition of the importance of laying out a roadmap for Akebono's future progress as a unified corporate group.

Akebono's core expertise is in the field of “friction and vibration, their control and analysis.” We deliberately place control before analysis in order to express our firm belief that it is Akebono's primary duty to promptly address and resolve the issues our customers are facing.

Our commitment to protection extends not only to human life. For Akebono, the phrase “every individual life” includes every single life-form on the planet, and thus, by extension, the global environment itself. Our Corporate Mission thus stipulates that we will create corporate value based on sound management in order to continuously protect and support all such life.

By translating akebono's Corporate Mission into reality, we shall contribute to the development of a sustainable society.

Business Turnaround Plan

An overview of measures to achieve the Business Turnaround Plan

Akebono is implementing each business restructuring measure in accordance with the Business Turnaround Plan approved by relevant financial institutions in the specified certified dispute resolution proceedings under the Act on Strengthening Industrial Competitiveness (the “Business Turnaround ADR Proceedings”).

  1. In order to eliminate deficits in all facilities and business divisions, Akebono is implementing structural reforms with no areas exempted with the aim to achieve profitability.
  2. Akebono will ensure future growth through the achievement of the Business Turnaround Plan.
Business Turnaround Plan Period
From September 18, 2019 (Date of Approval of Business Turnaround Plan) to June 30, 2024 (Last Date of Plan Period of Business Turnaround Plan)
Business Restructuring Measures (Outline)
  1. 1. Enhancement of Management Structures
  2. 2. Business Structural Reforms
  3. 3. Improvement of Financial Position

Current Progress of Business Structural Reforms

Japan

Plan
Improvements to productivity, cost reductions including rationalization and reduction of expenses, downsizing of plants, improvement of low-profit products and unprofitable transactions and reestablishing of strict processes for approval of expenditure items such as capital expenditures, development costs and parent-subsidiary loans
Key measures and progress
  • Measures
    Early retirement program for indirect associates at headquarters
    Progress

    Completed

    • Application period: February 24, 2020 - March 23, 2020.
    • Program target was mostly achieved including associates who resigned for personal reasons.
  • Measures
    Early retirement program for associates at manufacturing facilities
    Progress

    Completed

    • Application period: December 21, 2020 - February 12, 2021.
    • Program target was achieved with applications exceeding plans.
  • Measures
    Downsizing of four plants
    Progress

    In Progress

    • Revised plans from gradually downsize and close Akebono Brake Sanyo Manufacturing Co., Ltd. and downsizing Akebono Brake Fukushima Manufacturing Co., Ltd. to downsizing four plants in Japan.
    • Improvement activities for the optimization of production are currently being implemented.
    • Although there has been a slight delay in progress regarding the transfer of production from domestic to overseas plants due to negotiations with automakers, Akebono is undertaking the transfer of production between domestic plants ahead of schedule.
  • Measures
    Absorption-type merger of consolidated subsidiaries
    Progress

    Completed

    • As part of structural reform measures with the aim of further enhancing competitiveness through strengthening the R&D organization by integrating resources, Akebono Research & Development Centre Ltd. and Akebono Advanced Engineering Co.,Ltd have been absorbed by headquarters.
    • Fundamental research, R&D of advanced technologies, and business know-how cultivated by the consolidated subsidiaries will be taken over by headquarters, for enhanced synergies to reinforce R&D functions.
  • Measures
    Sale of corporate head office building in Tokyo
    Progress

    Completed

    • Completed in March, 2020.

North America

Plan
Closure and sale of plants, ensuring compliance with processes for approval of fund management, and conducting other improvements in terms of costs
Key measures and progress
  • Measures
    Closure of two plants
    Progress

    Completed

    • Akebono has successfully completed the closure of its plants in Tennessee at the end of July, 2020 (one month ahead of schedule) and in South Carolina in September, 2020 (on schedule). Akebono has completed the sale of the land and buildings of each facility.

Europe

Plan
Structural reforms including the restructure of businesses and facilities
Key measures and progress
  • Measures
    Closure of facilities in France
    Progress

    In Progress

    • Akebono was unable to conduct either collaboration or selling off as specified in the restructuring plan. As a result, the facilities will be closed and dissolved after the completion of operations such as the transfer of production of existing products.
    • Regarding a plant in Slovakia, Akebono originally planned to collaborate or sell off the facility in such a way that would not cause a loss for the company. However, we have decided to continue operations as it has become profitable and the potential for new orders in the future is high.
    • Akebono's facility in Germany functions as an interface for customers in Europe and as a R&D base contributing to the acquisition of new orders. As these activities are essential to the continuation of operations in Slovakia, operations at this facility will also be continued.
  • Measures
    Closure of facility in England
    Progress

    Completed

Figures for the Business Turnaround Plan

Sales and operating income transition graph

  • Figures in the Business Turnaround Plan are based on the asset valuation specified in the Business Turnaround ADR Proceedings Standards. As these figures are different from asset valuations based on the corporate accounting standards*, please note that there are differences for both actual and forecasts figures.
  • * Japanese Generally Accepted Accounting Principles (GAAP)
  • † Fiscal year defined as from April 1 to March 31 of the next year.

Putting Customer Needs First

From R&D to manufacturing, we continue to pursue the best in order to meet the needs of our customers

Meeting the needs of our customers and society

As an independent manufacturer specialized in brakes, Akebono strives to deliver safety and peace of mind to customers all over the world. From compact cars to high-performance vehicles, Akebono develops and manufactures brakes in a wide range of segments. We leverage the technologies that we have accumulated through the automotive field to develop diverse business areas and focus on development of next-generation technologies to contribute to creating a better society with safety and peace of mind for all.

Development and testing equipment

Through the introduction of a high-performance dynamometer (brake testing machine), we are about to simulate driving under extreme conditions. The dynamometer can not only adjust for speed, but also the driving environment such as temperature and wind speed to reproduce an environment that meets the various requirements of our customers. This machine also makes it possible to analyze the surface pressure of brake pads on a rotating brake rotor. This technology greatly contributes to the improvement of analysis directly relating to the performance of our brakes such as prevention of uneven wear on brake pads.

Examining and evaluating braking performance when suddenly applying a brake from a high-speed exceeding 200km/h

Product Lineup

Akebono always puts safety first in the development and manufacture of products.

As a comprehensive brake manufacturer, Akebono develops and manufactures friction materials and mechanical parts for disc brakes and drum brakes. This technology is applied across a wide range of products including brakes for motorcycles, rolling stock and industrial machinery. Akebono also develops and manufactures sensor products utilizing vibration analysis technology acquired through the development of brakes.

Brakes for Automobiles

  • 6-pot brake caliper for high-performance mass-production cars

  • 10-pot brake caliper for high-performance mass-production cars

  • 10-pot brake caliper for high-performance cars

  • Brake caliper for endurance racing

  • Brake caliper for endurance racing

  • Floating type disc brake for passenger cars

  • Floating type disc brake for commercial vehicles

  • Opposed piston type Disc brake

  • Drum brake for passenger cars

  • Drum brake for commercial vehicles

  • Disc brake pads

  • Drum brake lining

  • 10-pot brake pads for high-performance mass-production cars

  • 6-pot brake pads for high-performance mass-production cars

  • Brake pad for endurance racing

Brakes for Motorcycles

  • Brake caliper for motorcycles

  • Master cylinder for motorcycles

Brakes for Rolling Stock

  • Disc brake for bullet trains

  • Even-contact pressure disc brake lining for bullet trains

  • Disc brake lining for conventional trains

  • Brake shoes for railroad trains

  • Disc brake lining for subway trains

Brakes for Industrial Machinery

  • Drum brake for forklifts

  • Clutch facings for car air conditioning units

  • Brake shoe for elevators

  • Disc brake for rough-terrain cranes

Aftermarket products

  • Aftermarket brake pads

Sensor Technologies

  • Sensor cluster

  • Vehicle behavior detection device (rolling stock)

  • Vehicle derailment detection device (rolling stock)

  • Jutender Ⅱ (concrete filling & compaction detection system)

Technology and Quality Management

We go beyond what is asked of us to propose the best solutions

We seek out the most difficult fields to make the ideal reality

Aspiring to be a leading brake expert, Akebono began supplying brakes for motor sports in 2002 and for Formula 1 racing from 2007. Taking on the technological challenge of various motorsports, Akebono has developed highly experienced engineers and advanced capabilities. This has been leveraged in the development and adoption of high-performance brakes and improved the technological standard for brakes in mass-produced cars.

Moving toward next-generation technology, driven always by a willingness to embrace challenges

Akebono is focusing on the development of electric brakes to respond to the accelerating trend toward electric and autonomous vehicles. Akebono has developed an electric parking brake system for small to mid-sized trucks with a unique construction where one motor's output is transmitted to two pistons. By utilizing technology cultivated through the development of brakes for high-performance vehicles, Akebono has developed an opposed piston type electric parking brake for electric sports cars. Mass-production is planned to begin in 2021.

We believe that every aspect of manufacturing presents opportunities for further improvement

Reducing costs and developing our people through improvements to productivity based on ensuring the highest standards of safety and quality

From 2019, Akebono has been conducting SQDC (Safety, Quality, Delivery, and Cost) improvement activities at all plants in Japan. These activities increase productivity while ensuring the highest levels of safety and quality to achieve cost reductions, production rationalization, and talent development. Each plant is assigned with a leader for safety, quality, delivery, and cost, leading activities for all associates towards their objectives.

Adopting the “5-Gen Approach” to find and resolve the core issues

Under a new management structure introduced in 2019, Akebono has been resolving issues by adopting the “5-Gen Approach”: Genchi, Genbutsu, Gennin, Genri, Gensoku (“Go to the actual place, see the actual things and confirm the actual facts. Then take action based on fundamental theory according to decided principles”). Each associate at Akebono adopts the “5-Gen Approach” in their work.

We are always looking ahead to further improve quality and actively engage with next-generation technology

Working towards achieving the SDGs
13.CLIMATE ACTION, 14.LIFE BELOW WATER, 15.LIFE ON LAND

Proactive initiatives aimed at reducing environmental impact

From 2016, Akebono started to work on developing technology to collect, measure and analyze brake dust generated from friction materials. This technology was completed and has been recognized in 2020 as a pioneering technology for the standardization of brake dust analysis by the Society of Automotive Engineers of Japan, Inc. (JASO). Akebono will continue to develop friction materials with this technology and actively work to reduce our environmental impact.

Squarely facing our social responsibilities as an organization

As part of efforts to create next-generation products, Akebono has developed brake pads that generate 50% less CO2 emissions than conventional brake pads in the manufacturing process. Additionally, manufacturing time has been reduced by 50%, and we have significantly reduced the amount of brake dust generated when the brakes are used.

Human Resources

Akebono aims to create an ideal workplace where every associate can grow and achieve their goals

Basic Human Resources Policy

Akebono believes that the most important factor that guides a company to success is human talent (our associates). Guided by that belief, we set forth our basic human resource policy that each associate must be given the opportunity to exert their abilities and be continuously supported to share their success with the Company. We are striving to build our long-term global personnel policy as well as to facilitate associates' ability to establish their individuality and foster mutual respect and trust.

An organization capable of maximizing the abilities of each associate. Promotion of diversity. Promotion of work-life balance. Career support

Diversity Management

Akebono is promoting diversity management centered on three key initiatives: the promotion of diversity, career support, and the promotion of work-life balance. Through these themes, our goal is to be an organization that can maximize the abilities of each associate and creating new value for our business.

Working towards achieving the SDGs

3.GOOD HEALTH AND WELL-BEING, 4.QUALITY EDUCATION, 5.GENDER EQUALITY, 8.DECENT WORK AND ECONOMIC GROWTH

Akebono Receives “L-boshi Designation” for the Promotion of Women's Career Activities

Akebono continues to promote an organization where all of our associates can work with motivation and enthusiasm, regardless of gender. In 2016, we received the L-boshi Designation (Third Grade)* from the chief of the Saitama Labor Bureau. The L-boshi designation system recognizes business owners that have performed excellently in initiatives for promoting the advancement of women from among those who formulate an action plan based on the Act Concerning Promotion of Women's Career Activities and submit the details of the plan. The designation is received from the Japanese Minister of Health, Labor and Welfare.

  • *Official nickname for the designation of the General Business Owner Complying with the Standard based on the Act for Promoting the Advancement of Women.

Akebono received the “Kurumin” mark for the third time

Akebono received the “Kurumin” mark from the Saitama Labor Bureau in 2016, recognizing it as an organization that actively supports child-raising in accordance with the “Act on Measures to Support Development of the Next Generation.” This was the third time Akebono has received this award, after receiving it in both November 2007 and June 2013.

Health Management

Akebono's health and wellbeing activities are founded on three pillars of health management promotion: workstyle reforms, promotion of both physical and mental wellbeing, and raising awareness of health. As a result of these activities across our organization, Akebono was certified as a “2021 Health and Productivity Management Outstanding Organization (Large enterprise category).” This award program recognizes initiatives to overcome health-related challenges in communities and promote health-conscious activities led by the Nippon Kenko Kaigi, and recognizes outstanding organizations engaging in efforts for health and productivity management. Akebono has received this award for the fourth year in a row.

Akebono Nursery School (Ai-Kids)

Akebono established the Akebono Nursery School in 2018 within the organization as a part of workstyle reforms and to enhance our organization's benefits and to contribute to our local community.

Akebono Global Training Center
“Ai-Village”

Ai-Village, Akebono’s global training center, was established in 2012 in Ai-City (headquarters) as a facility to nurture globally capable human resources. Currently, the facility is used to enhance our training activities which includes in-person and online training programs.

Employment of People with Disabilities

Akebono 123 Co., Ltd., a special-purpose subsidiary of the Akebono Group, provides employment for people with disabilities and is working to help them achieve personal growth and development. Saitama Prefecture, Japan, has recognized Akebono's proactive initiatives to create inclusive workplaces and has designated our organization as an “Excellent Saitama Prefecture Disability-Inclusive Employer” since April 2007.

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