Akebono Brake Industry Co., Ltd.TSE: 7238

Announcement Regarding the Formulation of the Medium-Term Business Plan

· Issued by Akebono Brake Industry Co., Ltd.

(NOTE) This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the Japanese original shall prevail.

Date: August 7, 2025

Company Name: Akebono Brake Industry Co., Ltd. Representative: Hiroshi Nagaoka, President & CEO (Securities Code: 7238 TSE Prime Market)

Announcement Regarding the Formulation of the Medium-Term Business Plan Akebono Brake Industry Co., Ltd. has formulated the Medium-Term Business Plan covering

from FY2025 to FY2027 (hereinafter referred to as "the Plan") and resolved it at the Board of Directors meeting held today. The Plan aims for "Return to Growth" from FY2028 to FY2030, with the goal of achieving "Rebuild the Foundations" from FY2025 to FY2027. An overview of the Plan is provided in the attached document.

End of Document

1



Akebono Brake Group

Medium-Term Business Plan

August 7, 2025 Akebono Brake Industry Co., Ltd.



External

Products for Automobiles

  • Growth is slowing. However, continued growth in global demand is expected.

  • By region, the Indian market in particular is seeing accelerated growth.

  • By customer, Chinese automakers continue to expand market share.

    Products for Motorcycles

  • Continued growth in global demand is expected.

  • By customer, Japanese OEM continue to have a strong presence.

    Products for Industrial Machinery

  • Growth is slowing. However, continued growth in global demand is expected.

    Products for Rolling Stock

  • Recovery in Japan due to an increase in domestic travel and inbound tourism caused by the yen depreciation.

  • Continued growth in global demand is expected.

    Products for Aftermarket

  • Although demand in Japan for replacement friction materials is declining due to the advance of electrification, demand for high performance and comfort is increasing in the retail segment.

    Internal

  • Growth in products for fleets in North America and demand for value-added products in Europe, the US, and China are expected.

  • Need to enhance safety and quality ⇒ Gain increasing trust from customers

  • Losses in North American operations ⇒ Restore profitability

  • The existence of low-profit products ⇒ Improve profitability and focus on high-margin products

Business Environment

External & Internal Factors



FY2019-FY2024

FY2025-FY2027

FY2028-FY2030

Operating Margin

Operating Margin

6.0%

Operating Profit

yen

15.0Billion

Operating Margin

1.9%

2.6%

Operating Profit

Billion

Operating Profit

8.0

yen

3.1

Billion yen

yen

Operating Profit

4.0Billion

Business Turnaround Plan

Business Turnaround

Medium-Term Business Plan

Rebuild the Foundations

  • Thorough revise of safety and quality management

  • Achieve profitability in all regions

    Next Medium-Term Business Plan

    Return to Growth

    • Business expansion based on high-profit businesses

    • Challenge in new technologies, new products, and new markets

Business Trend

Positioning of the Medium-Term Business Plan

Operating Profit

25

Operating Margin: 6%

Unit: Billion yen

20

15

10

5

0

0 50 100 150 200 250 300 350 400 450 500

Net Sales

Target by FY2030

Aiming to Exceed Record-high Profits in FY2030

Akebono Brake Industry

Japanese Auto Parts Suppliers

FY2027

Record-high Operating Profit: 15.2 Billion yen

(FY2007)

FY2030

FY2025 (Forecast)

FY2024

FY2023