Financial Overview

(in millions of JPY)

	FY2010	FY2009	Rate of Change (%)	Factors
Sales	216,574	130,604	65.8	1)
Operating income	11,392	4,663	144.3	-
Ordinary income	9,783	2,670	266.4	-
Current net income	5,265	2,061	155.5	-

Factors

1)
＜Japan＞
-The Company suffered from the effects of lower unit sales that resulted when the eco-car sales incentives ended. It was also affected by the significant drop in customer orders following the Great East Japan Earthquake that occurred on March 11, even though customer orders in the export sector were favorable. The Company posted an extraordinary loss of 1.25 billion yen as a disaster loss due to the March 11 Earthquake.

＜North America＞
-The usual customer orders awarded to its production facilities increased year-on-year. Furthermore, as a result of the Company's North American operations being awarded an outsourcing contract from Robert Bosch in 2010, sales reached 107.03 billion yen, a significant year-on-year increase of 199.0% or 71.24 billion million yen.

＜Europe＞
-Sales were 4.44 billion yen, which was a year-on-year increase of 210 million yen, or 5%. However, the company suffered a business operating loss of 30 million yen due the rise in the cost of raw materials. (Last year's operating loss was 40 million yen.)

＜China＞
-Customer orders from Japanese automakers again turned favorable, resulting in sales of 5.11 billion yen, or a year-on year increase of 1.53 billion yen (+42.7%).  The Company's business operating profit reached 830 million yen, amounting to a year-on-year increase of 270 million yen, or a 48.8% rise.

＜Thailand＞
-The production volume of disk brakes, in addition to those of brake pads, were phenomenal, with the Company receiving brisk customer orders. Sales were 3.27 billion yen, amounting to a year-on-year increase of 950 million yen (+41.0%). The business operating profit of 420 million yen also showed strong performance, increasing 330 million yen year-on-year, a tremendous jump of 374.6%.

＜Indonesia＞
- Customer orders from Japanese two-wheel and four-wheel automakers again turned favorable, resulting in sales of 14.2 billion yen, a year-on-year increase of 3.45 billion yen, and a 32.1% rise. The business operating profit of 2.5 billion yen rose by 920 million yen year-on-year, amounting to a 58.5% rise.

Awards

-Ford announced that it is adding 13 new companies to its Aligned Business Framework (ABF), bringing the total to 90 members. The new ABF suppliers are: Akebono; Automotive Lighting; Benteler; Brembo; Federal Mogul; Gentex; GKN; Hayes Lemmerz; Key Safety Systems; Michelin; Ronal GmbH; Samvardhana Motherson Reflectec; Takata. Ford created ABF in 2005 to strengthen its collaboration with key suppliers. (From a Ford press release on April 23, 2010)
>>>Financial Forecast for the Next Fiscal Year(Sales, Operating Income etc.)

Outlook for FY2011

(in 100 million of JPY)

	FY2011	FY2010	Year-on-year Fluctuation
Sales	2,080	2,166	(86)
Operating income	70	114	(44)
Ordinary income	55	97	(42)
Net income	20	53	(33)
Investment Expenditure	150	51	99

Sales by Region

(in 100 million of JPY)

	FY2010	FY2009	Year-on-year Fluctuation
Japan	935	931	4
North America	980	1,070	(90)
Europe	50	44	6
Thailand	31	33	(2)
China	48	51	(3)
Indonesia	140	142	(2)
Elimination in Asia	(11)	(12)	1
Asia	208	214	(6)
Consolidated Elimination	(93)	(94)	1
Overall	2,080	2,166	(86)

R&D Expenditure

(in millions of JPY)

	FY 2010	FY 2009	FY 2008
Overall	1,256	1,129	2,638

R&D Activities

<Japan>
-The Company has been conducting R&D activities mainly in the area of high-performance and low-cost brake pads for passenger vehicles, making them superior in terms of  both noise and vibration, and in terms of reduced wheel-dust, which has been a recent focus of attention. In addition, the Company is developing high-quality products that use safe and environmentally friendly friction materials.

-The Company is focusing its R&D activities on brakes and drum breaks in two main areas, namely “high performance” and “low-cost”. The Company’s aluminum-alloy opposed-brake shoes designed for high-performance cars have been well received by customers.

-Akebono Brake Research and Development Centre is engaged mainly in the following R&D activities:
1） Developing next-generation friction materials, which are more compact, lighter,  and higher performance.
2） Developing raw materials, taking into account risk control, environmental impact, and seeds）
3） Conducting evaluations and developing analytical technology on friction behavior and vibration transmission.
4）Developing processes to improve productivity and reduce environmental impact

<U.S.A.>
-Based on the outsourcing agreement the Company won in North America from Robert Bosch L.L.C., the Company started to develop products such as disk rotors and corner modules for wheel ends. In particular, with making improved performance in terms of NHV the cornerstone of its R&D activities in the U.S.A., the Company is focusing its R&D activities on maintaining a total balance in developing high performance and high quality products such as foundation brakes, brake pads, and its mainstream brake parts, including disk rotors,

<Europe>
- The European R&D activities specialize in developing friction materials. In terms of developing these kinds of friction materials, the Company’s R&D activities are responding to a wide range of needs, from developing friction materials meeting required performance in the European market by complying with the strict European environmental regulations since REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) was introduced, to friction materials compliant with European cars that are being exported to the Japanese and American markets.

<China>
-The Company is set to undertake development of braking products designed to meet specifications of vehicles for the emerging market at the initiative of its local subsidiary in China. The company will set up a development center at its Chinese production facility by the end of this year to carry out a wide range of functions from market research to development of materials to production engineering. Specifications of products will be finalized in China and be deployed to new emerging countries, including India and in Southeast Asia. This policy is meant to boost a competitive edge by introducing products dedicated to the emerging market, which are low cost, but meet the basic needs of the market. The development center will be established on the premises of the subsidiary in Suzhou, Jiangsu Province for manufacture of brake pads. Development staff will be dispatched from Japan to help work out detailed product specifications. By adding functions tailored to the emerging market, Akebono is poised to conduct aggressive marketing activities targeted at Japanese and local automakers in the market. (From an article in the Nikkan Jidosha Shimbun on January 6, 2011)

Capital Expenditure

(in millions of JPY)

	FY 2010	FY 2009	FY 2008
Total	5,100	5,400	17,800

-The Company spent 5.1 billion yen in capital investments, investing 1.8 billion yen in Japan, 1.9 billion yen in North America, 100 million yen in Europe, 200 million yen in China, and 1.1 billion yen in Indonesia. It mainly invested in IT equipment and systems in Japan, production and R&D facilities in North America and Europe, and in facilities and equipment to respond to increased production volumes in China and Indonesia.

Plan for New Facilities

Company/plant (Location)	Facilities & Activities	Total investment (millions of yen)	Start date	Completion
Headquarters and and other facilities (Tokyo, Japan)	Casting production facilities, equipment for new production methods, information equipment	4,400	Apr. 2011	Mar. 2012
Development division (Saitama Pref., Japan)	Testing and R&D facilities, high-performance brake development facilities	1,000	Apr. 2011	Mar. 2012
Akebono Brake Iwatsuki Manufacturing Co., Ltd. (Saitama Pref., Japan)	Production facilities manufacturing disc brakes and drum brakes	1,800	Apr. 2011	Mar. 2012
Akebono Brake Fukushima Manufacturing Co., Ltd. (Fukushima Pref., Japan)	Production facilities  manufacturing brake linings, industrial machinery, and railway products	400	Apr. 2011	Mar. 2012
Akebono Brake Yamagata Manufacturing Co., Ltd. (Yamagata Pref., Japan)	Production facilities  manufacturing disc brake pads	1,800	Apr. 2011	Mar. 2012
Akebono Brake Sanyo Manufacturing Co., Ltd. (Okayama Pref., Japan)	Production facilities  manufacturing disc brakes and drum brakes	400	Apr. 2011	Mar. 2012
Akebono Research & Development Center Ltd. (Saitama Pref., Japan)	Testing and R&D facilities	200	Apr. 2011	Mar. 2012
Akebono Corporation (North America) (Kentucky, USA)	R&D facilities	400	Jan. 2011	Dec. 2011
Ambrake Corporation (Kentucky, USA)	Production facilities  manufacturing disc brakes, drum brakes and disc brake pads	1,300	Jan. 2011	Dec. 2011
Amak Brake L.L.C. (Kentucky, USA)	Production facilities manufacturing disc brakes	2,500	Jan. 2011	Dec. 2011
ABMA, L.L.C. (Kentucky, USA)	Production facilities  manufacturing disc brakes and drum brakes	1,300	Jan. 2011	Dec. 2011
Akebono Europe S.A.S. (Gonesse, France)	R&D facilities, production facilities  manufacturing disc brake pads	250	Apr. 2011	Mar. 2012
Akebono Corporation (Suzhou) (Suzhou, China)	Production facilities  manufacturing disc brake pads	300	Jan. 2011	Dec. 2011
Akebono Corporation (Guangzhou) (Guangzhou, China)	Production facilities  manufacturing disc brakes and drum brakes	800	Jan. 2011	Dec. 2011
PT. TriDharma Wisesa (Jakarta, Indonesia)	Facilities to produce disc brakes and disc brake parts	1,300	Jan. 2011	Dec. 2011
Akebono Brake Thailand Co., Ltd. (Chonburi , Thailand)	Production facilities  manufacturing disc brakes	850	Jan. 2011	Dec. 2011