MAHLE Filter Systems Japan Corporation Business Report up until FY ended Dec. 2014

Investment Activities in Japan

-In 2012, the Company has begun to construct a new production plant for air intake and filtration systems in Kyushu, Japan, since one of its Japanese customers is going to move the majority of its vehicle manufacturing to the region. It is near the production plants of customers such as Nissan, Toyota, Mitsubishi, and others. The production area will be 7,500 square meters in the first stage of construction. Completion is scheduled for September 2012 and start of production for the end of the year. (From a press release on August 27, 2012)

Awards

-In Sep. 2014, the Company received "Best Performance Award" from Nissan.

Contracts

<2011>
Plastic head covers
-Use of lightweight, plastic covers is increasing, as automakers are developing lighter vehicles.
-The Company's plastic head covers are used on Honda's vehicles equipped with 1,500cc engines. They are also featured on the Nissan "Fuga" V6 engine models.

Oil filters
-The Company's oil filters are used on gasoline engine vehicles manufactured by Nissan and Honda.

Air cleaners
-The Company's air cleaners are used in about 60 to 70% of all vehicles produced by Nissan.
(This information was obtained through interviews conducted by MarkLines in November 2011.)

<2007>
Cylinder head covers and intake manifolds
-In Apr. 2007, the Company has won a supply agreement from Suzuki Motor Corporation to provide cylinder head covers and intake manifolds for mini vehicle engines. Delivery of these engine products is expected to begin in the second half of 2008, marking the first time that the Company supplies products for use in mini vehicles. The Company sees this as an opportunity to increase the volume of supply to Suzuki, business with which has not taken up a significant portion of its revenue so far. The Company also aims to develop its presence in the growing mini vehicle market (over 2 million cars at the moment) by meeting new needs and requirements of the industry. The cylinder head covers and intake manifolds that the Company will supply to Suzuki are made of plastics, which offer weight-saving features and design flexibility. (From an article in the Nikkan Jidosha Shimbun on Apr.12, 2007)

R&D Facilities

Name	Location
Technical Center	Kawagoe City, Saitama Pref.

R&D Activities

-The Carbon canister supplied to Honda of America Manufacturing Inc. was developed in Japan, and produced in U.S. The Company's carbon canisters feature an inner trap system that allows sharing of casing. The low-cost and compact products offer advanced functionality.