Message from Top Management

4.Measures for Further Strengthening Group Collaboration

To date, the AISIN Group has achieved growth by leveraging the high level of expertise of each Group company. To attain further growth in the future, each company must strengthen collaboration to fortify the competitiveness of the entire Group. We have already launched several initiatives toward this objective. For example, in the area of Group management, we are promoting initiatives for building a variety of systems that support group-wide collaboration. These include efforts to strengthen cost competitiveness by introducing joint procurement systems and launching initiatives to streamline fixed costs by sharing personnel management systems and accounting systems.

On the operational front, we will make groupwide responses such as efficiently utilizing Group resources for undertaking a large-scale expansion and strengthening the production capabilities of Aisin AW Co., Ltd. to meet the expected rise in demand for automatic transmissions.

Turning to technology development, three companies, namely Aisin Seiki, Aisin AW and Aisin AI, have jointly developed an electric 4WD unit for hybrid cars. Installed in the new model Prius that rolled out on the world stage in December 2015, these units have been well received in areas with heavy snowfall and in cold-weather regions. Going forward, we will pursue further synergies in technologies within the Group and strive to consistently provide products that satisfy customers.
Please refer to Group Highlights on pages 22-23 for details.

5.Measures for Securing Future Growth Potential

During the past year we implemented business restructuring activities to strengthen Group collaboration to solidify our foundation and raise our competitiveness. The positive results of these efforts are now beginning to show results. From fiscal 2017, we will accelerate efforts to create new businesses and appealing products to ensure our future growth potential.

First, in the automotive parts business, as we work to develop next-generation products that anticipate future needs in areas such as powertrain electrification and autonomous driving, we established the Business Promotion Group within the Business Planning Department and the Future Strategy Group within the Technology Planning Department. We also launched efforts for determining the directions that we will pursue in the future, and for formulating related strategies. In early 2017, I would like to start moving forward with specific, meaningful projects that make good sense regarding the future of the AISIN Group. As we strive to cultivate businesses that will become the second pillar of our operations, we are strengthening and expanding our energyrelated and aftermarket businesses. We are also stepping up efforts to tackle the challenge of creating new products and businesses that uncover the needs of end users.

President Aisin Seiki Co., Ltd. Yasumori Ihara

On a different front, we are proceeding with efforts to reinforce our underlying foundation. In terms of quality, we continuously promote improvement activities and make efforts to create quality that meets and exceeds customer expectations. At the same time, we will focus on creating safer workplaces beginning with efforts to prevent disasters and accidents, undertake environmental protection activities such as reducing CO2 emissions and waste, and thoroughly implement compliance to a higher level as we fortify initiatives that reliably generate positive results.

I believe that my mission is to make the AISIN Group an organization of vibrant companies, raise cohesiveness and strengthen our competitiveness, and make AISIN a company with strong solution capabilities. For these reasons, I will put forth my utmost efforts to foster a corporate culture that enables each and every person working in the AISIN Group to take on challenges in pursuing their own dreams. As we all work “For a Better Tomorrow,” I would like to see AISIN become a corporate group that can contribute even more to society and the world.

You can count on the AISIN Group to attain these goals in the future.