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Aisin Group Network Magazine April, 2020 No.13 HELLO WORLD Readers' Questionnaire - Please fill out Let us know your opinions and requests! Response deadline : June 30 Click here for the questionnaire site https://www.aisin.co.jp/helloworld/index_us.php Feature : FY2020 Group Management Policy and New Organizational Structure Times of Crisis are Times to Advance Reforms

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Page 1: Feature : FY2020 Group Management Policy and New ... · Feature : FY2020 Group Management Policy and New Organizational Structure Times of Crisis areTimes to Advance Reforms Company

Aisin Group Network Magazine Apr i l , 2020 No.13

HELLO WORLD Readers' Questionnaire - Please fill out Let us know your opinions and requests!Response deadline : June 30 Click here for the questionnaire site https://www.aisin.co.jp/helloworld/index_us.php

Feature : FY2020 Group Management Policy and New Organizational Structure

Times of Crisis areTimes to Advance Reforms

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Sustainable Growth2Policy Improvement of competitiveness in existing businesses

1 Transformation of the profit structure by concentrating resources in growth-oriented products and scrapping unprofitable products2 A global streamlining of the business structure that recognizes business conditions3 Strengthening of product competitiveness and low-cost competitiveness based on  productivity improvements that exploit global best practices and unit requirement reform

Challenge Toward the Future1Policy Acceleration of growth strategies in core fields to ensure survival

1 Acceleration of technology development and market launches for CASE-related fields2 Aggressive utilization of new technology, including external collaboration that anticipates social change3 Creation of new business models utilizing our independently developed technology, know-how, and ties with our customers

Solid Footing3Policy Reinforcement of management foundation that supports sustainable growth

1 Practical implementation of corporate actions that contribute to a sustainable society (SDGs / ESG, Diversity)2 Promotion of reform to make AISIN a fulfilling place for our employees to work   (HR development, reform of system and mind-set, digitalization)3 Function consolidation from the perspective of the entire Group and the creation of a lean  structure based on a thorough reduction of fixed costs

Times of Crisis areTimes of Crisis areTimes to Advance ReformsTimes to Advance Reforms

Feature : FY2020 Group Management Policy and New Organizational StructureOn January 24th, President Ise of Aisin Seiki, announced the FY2020 Group Management Policy. In addition, a new organizational structure was implemented in April in advance of the upcoming 2021 merger. In times of genuine crisis, it is all the more important to accelerate the pace of reforms to overcome the challenging situation facing the entire Group.

Q

A

Isn't this fiscal year's policy much the same as last year's?

The Aisin Group's business situation is more severe than ever, with the novel coronavirus (COVID-19) having an overwhelming negative impact as profitability plunges due to a decline in automobile sales in China, over-extended investment, quality issues, and an increase in fixed costs. Under these circumstances, to achieve “true competitiveness” as quickly as possible, it is necessary to advance reforms in two key areas: “Reform of corporate structure to be adaptable to CASE” and "Reform of corporate constitution to be highly profitable.” For this reason, it is vital that we continue maintaining and accelerating our basic management policy.

We are basically keeping the same policy in place in order to accelerate two core reforms.

Q

A

What are the main points of the management policy?

"One Team," "Group Management," and "Making Work More Rewarding"

One Team

We have adopted the slogan "One Team For a Better Tomorrow" to express our intention to work as one toward our shared goals.For the Aisin Group to survive, all Group members must boost their individual strengths, and at the same time we must work together to achieve the common goal of growth across the entire Group. The "One Team" slogan embodies our desire for each member to think about what they need to do and take autonomous action.

GroupManagement

To move forward with the two key areas of reform rapidly, action guideline ❸ was changed to “Evolution of collaboration: from separate company management to Group management.”To move forward with the two key areas of reform, it is vital that we combine the technologies and wide-ranging knowledge that each Group company has accumulated. We must also generate business in new areas, while eliminating redundancies to heighten efficiency. This will entail expanding connections within the Group, with mergers and consolidation of functions.

Making WorkMore

RewardingThe Aisin Group is facing challenges from suppliers in emerging nations, and if it descends into a simple price war, we are sure to lose. Our strategy for succeeding must be to make dramatic changes to our working methods and act autonomously to create new value. Part of this will be transitioning to a work style based on superiority of quality instead of quantity. Additionally, we want team members to lead more fulfilling lives with improved work-life balance.

CASE: Stands for "Connected, Autonomous, Shared/Service, Electric," four key factors in the automotive market moving forwardSDGs: Stands for "Sustainable Development Goals," adopted by the UN in September 2015 with 2030 set as the target for fulfillmentESG: Stands for "Environment, Social, Governance," three areas viewed as benchmarks for whether a company can grow sustainably

* Red text indicates things that have changed since last fiscal year.

FY2020 Group Management Policy

Slogan One Team For a Better Tomorrow

G o a lTo acquire true competitiveness and become a vital company capable of proposing new value

ActionGuidelines

❶“Take the initiative to anticipate the future and act swiftly”❷“Scrap and build with nothing considered untouchable”❸“Evolution of collaboration: from separate company management to Group management”

Foundation0Policy Priority placed on safety and compliance,

with a rapid restoration of quality levels

Group Management Policy Q&A

Reform of corporate structure to be adaptable to CASEReform of corporate constitution to be highly profitable

Policy 3 2 is "promotion of reform to make Aisin a fulfilling place for our employees to work," which is intended to motivate team members to generate new value.

02 03

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Times of Crisis areTimes of Crisis are Times to Advance ReformsTimes to Advance ReformsFeature : FY2020 Group Management Policy and New Organizational StructureFeature : FY2020 Group Management Policy and New Organizational Structure

Company System

Group Head Office

CSS Company CSS is an acronym for "Connected & Sharing Solution." Based on the state-of-the-art navigation and connected technologies we have cultivated so far, we will utilize location data obtained from vehicles on the road and smartphones to develop various new contents and services.

Creating New Value by Taking Advantage ofAisin's Strengths

In the urgent situation of the response to CASE, we must admit the areas of Connected(C) and Shared(S) are at under the difficult circumstances due to the huge market share of GAFA and the survival competition with the IT industry. Meanwhile, our Aisin Group has the advantage of automotive technology such as powertrain systems, car body parts and car electronics area. In addition, Aisin AW has the highly competitive large-scale software development capability with the precise location base information. We will create the new area of C&S altogether with the Group asset of knowledges of the auto parts, software skills and the location base information.Moreover, with these advantages along the collaboration of the worldwide excellent solutions companies, we perceive that to offer new value to the various mobility service's users are the legitimate mission for the CSS Company. And, it will lead to contribute to the concept of the Woven City presented by Toyota Motor Corporation.In the coming fiscal year of 2020, outset newly as in-house company, we shall survive aggressively in these particular fields by abandoning the former known-way and acquiring high technical skills and corporate culture to react against the environmental change and other strong competitive companies.

Kenji SuzukiPresident, CSS Company

Aiming to Become an Energy System Supplier Indispensable for a Carbon-free Society

Etsuji ObataPresident, L&E Company

CO2 emissions reduction and energy supply response (resilience) during disasters have become pressing social issues worldwide. With regard to the Aisin Group, society's expectations are increasing from the standpoint of SDGs and ESG, and we now have a chance to make a positive impact.Aisin Seiki has been pursuing the development of energy products for over 40 years. Against the backdrop of this extensive track record, the L&E Company will build a solid foundation for self-sustaining business through the dramatic growth and evolution of ENE・FARM and the acceleration of global expansion.Looking to the future, we plan to grow into an energy supplier that is indispensable for next-generation communities as exemplified by Toyota Motor Corporation's Woven City."Aisin ENE・FARM: Building the Future of Home Energy with Hydrogen" is a wonderful slogan, isn't it? (This is the ENE・FARM concept phrase and an advertisement aimed at the public.) We aim to build L&E into a company that all Aisin Group members would be happy to belong to! Please join us!

■ New Organization Introduced One Year Ahead of the Scheduled MergerIn light of the accelerating pace of change in the external environment, Aisin Seiki and Aisin AW will merge in April 2021 to more effectively implement reforms in two key areas. To be able to steadily consolidate management functions and carry out business activities smoothly post-merger, we have launched a new organizational structure one year in advance, in April 2020.The new structure is composed of two parts, the Group Head Office with integrated functions and the Company System with the "virtual" aspect removed from the former "virtual company." Through effective Group management, we aim to further strengthen competitiveness and heighten efficiency.

■ Messages from New Company Presidents

CSSCompany

PowertrainCompany

L&ECompany

Newlyestablished

Newlyestablished

AftermarketCompany

BodyComponentCompany

ChassisAnd Vehicle

Safety SystemCompany

Aisin AW

Aisin AW Industries

Aisin Kiko

Art Metal Mfg.

BluE Nexus

ADVICS

Aisin AWAisin AW

Aisin Chemical

ADVICS

Shiroki Corporation

Art Metal Mfg.

Awquis Japan

ADVICS Sales

Aisin Sin'ei

Shiroki Corporation

Hosei Brake Industry

ADVICS

Aisin Seiki

Electronics Center

Innovation Center

AisinAW ADVICS

◆New Organizational Structure Diagram

L&E Company L&E is an acronym for Life & Energy, and we are engaged in energy business, such as GHP commercial gas air conditioner, COREMO home cogeneration systems, ENE・FARM, and in shower toilet seat business. Especially in the energy business, we aim to tackle issues such as global warming and realize a low-carbon and carbon-free society.

Company SystemThese companies are being launced by transitioning from "virtual companies." They will handle business planning, development and production, and aim to create highly competitive products and maximize business value. In addition, the CSS Company and L&E Company have been newly established to strengthen the "C" and "S" elements of CASE as well as our energy business. After the merger of Aisin Seiki and Aisin AW, the company system will propel the Group forward primarily focusing on the powertrain sector.

Group Head OfficeMany functions including procurement, production control, and production engineering will be consolidated at the Group Head Office. The Head Office will strengthen the organization by improving efficiency and developing human resources for each of the integrated functions, and also take on the role of overseeing the Group. Furthermore, it will utilize IoT and other advanced technologies to create new value and extend it to each Group company to strengthen the Group's business foundations.

Aisin Group CorporatePlanning Headquarter

Corporate Foundation Div.Aisin Group Managerial

Administration Div.

Aisin Group Purchasing Div.

Aisin Group Sales & Marketing Div.

Corporate R & D Div.

Production Control Div.

Production Engineering Div.

04 05

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Times of Crisis areTimes of Crisis are Times to Advance ReformsTimes to Advance ReformsFeature : FY2020 Group Management Policy and New Organizational StructureFeature : FY2020 Group Management Policy and New Organizational Structure

As I said at the Group Management Policy briefing on January 24th, the automobile industry is undergoing massive changes. We are experiencing non-temporary and irreversible changes in the business environment such as the CASE revolution, the increasing competitiveness of Chinese companies, meeting ESG standards, and the US-China battle for hegemony. If we cannot respond to these changes quickly, we will not survive the crisis.For this reason we must advance "Reform of corporate structure to be adaptable to CASE," and in order to evolve into a company that can create the value required in a new era, and secure the t ime and funds necessary to transform our corporate structure, we must move forward with "Reform of corporate constitution to be highly profitable."

To make progress in these two areas of reform, it is necessary to fundamentally transform our conventional ways of working. Regarding existing

business sectors, we must rethink the way we will compete in the future from the perspectives of both competitiveness and future potential. It is also necessary to maximize the efficiency of fixed costs from the optimal viewpoint of the entire Group by consolidating functions distributed at individual companies at the Group Head Office.To act swiftly on building business areas that take the entire Group into account whi le scrapping redundancies and ineffective products, we have been moving from separate company management to Group management since last year. So far, we have made various organizational changes such as merging of software companies and of Aisin AW and Aisin AI, but it goes without saying that the biggest decision was the merger of Aisin Seiki and Aisin AW. The 219 companies in the Aisin Group truly become one team, centered on the new Aisin that will be launched in April 2021, which will act together as one to succeed in this challenging era. In that sense, this new organizational structure is a new post-merger structure for the entire Group.

Even if we change our organization, we cannot proceed with reforms unless the people that make up our organization change. "Making work more rewarding" is an initiative that calls on each of us to change our mindset and create new value.When I was younger, Japan was working steadily to catch up with and overtake the West, and the more work we did the more the company grew. However, times have changed, and now we are the ones being chased by companies in emerging countries such as China. We cannot compete with them in terms of amount of work. What we need to do now is change from a company that competes in terms of quantity of work to a company that creates new value these

Photo: Yohei Osada / Aflo Sport

competitors cannot provide. The purpose of "making work more rewarding" is to have everyone change their work style to compete on "quality" rather than "quantity."A better work-life balance means you spend less time at the company, and in your spare time read books, attend seminars and study, or enjoy interact ing with your fami ly whi le doing housework and raising children at home. The point is that these experiences outside the company br ing a lo t o f insp i ra t ion and discoveries to our members, and I believe this will lead to new ideas and ways of working, and will create new and unprecedented value in the Aisin Group.When I talked to mothers who work reduced hours, I often hear, “We are always thinking of more efficient ways to work so we can go home on time. On the other hand, many men work at a leisurely pace and take it for granted that they will work overtime, don't they?" They are always thinking about how to improve their work practices so they will also be able to raise their children and take care of their homes, and having a clear sense of purpose - wanting to finish work on time - is motivation to revolutionize ways of working. By making work more rewarding, we aim to create a company where all members

consider "going home on time" to be a matter of course, with the clear purpose of "being a team member that creates new value."

The slogan for this fiscal year is "One Team For a Better Tomorrow." The Japan national rugby team is a diverse group composed of people from many countries. While each of them have strong individual ability, but rather than relying on this alone, each understands his role on the team, and they successfully strove for the common goal of "team victory." This is how we want to be. Let us be an organization composed of people with solid ability to think, understand what we should do for the growth of the entire Group, and act autonomously to achieve this goal.

Accelerating the Implementation of the Two Reforms

Generate New Value by Making Work More Rewarding

Let's Build our Individual Strengths and Aim to Be One Team

Shift from Separate Company Management to Group Management

Kiyotaka IsePresident, Aisin Seiki Co., Ltd.

06 07

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2030 KPIs/Targets for SDGs Priority Issues

The potential of cellulose nanofiber to improve fuel efficiency and reduce CO2 emissions during the manufacturing process

Development Team 2, Advanced Development Group, Material Engineering Dept., Aisin Seiki

Cellulose nanofiber (referred to below as "CNF") is a carbon-neutral material produced by pulverizing wood from thinned timber, etc. down to nano size. Due to its high specific surface area, despite being plant-derived it is one-fifth the weight and five times the strength of steel. There are high expectations for this next-generation material to replace the glass and carbon fibers used in resin reinforcement. Another characteristic of CNF is that resin reinforced with this material does not lose its strength even when recycled, leading to waste reductions. In January 2017, Development Team 2 was seeking to contribute to business with environmentally friendly materials and evaluated CNF's suitability as an automotive material and developed a concept car utilizing CNF as part of the NCV (Nano Cellulose Vehicle) Project sponsored by the Ministry of the Environment. We began by considering how we can contribute to resolution of social issues through our business activities, by reducing weight to improve fuel efficiency and cut CO2 emissions at all stages from component manufacture to disposal.

Among the more than 20 organizations and companies involved in the NCV Project, Aisin Seiki was in charge of development and evaluation of the intake manifold.* Engine parts must operate in the harshest environment of any automotive parts, and require high heat resistance and long-term reliability. Some of the challenges we dealt with were unique to CNF, such as reduced fluidity during molding. We are currently pursuing technological development while overcoming these issues through our unique heat-stabilizing prescription technologies, molding and welding technologies.There are still physical difficulties and cost concerns that must be addressed before CNF can be broadly adopted. And we have begun working with paper and resin manufacturers to resolve these issues. The goal is "to make eco-friendly automotive parts some of our company's strong-selling products." Development Team 2 will continue taking on challenges facing the future of the company and the earth.

CNF Project staff, Kazuki Tanaka

Contributing to Mitigation of Global WarmingThere are still numerous challenges facing the application of CNF materials to automotive parts production, but we will reinforce cooperation with related departments within the company and accelerate development and seek the cooperation of Group companies with the aim of swift implementation, to contribute to mitigation of global warming. We would like to express our deepest gratitude to our NCV Project partners and related parties within the company who provided guidance and cooperation for this development.

Connects to these goals

■Industry, innovation and infrastructure■Sustainable cities and communities■Responsible consumption and production■Climate action

Carbon-neutral Next-generation Materials

Pursuing Specialized Fields and Aiming for Social Implementation

Nano cellulose vehicle made with cellulose nanofiber, first exhibited at Tokyo Motor Show 2019

* Intake manifold: A component that distributes and supplies air to each cylinder of the engine, made by welding and integrating multiple resin-molded parts.

Reinforced resin, a raw material used to make cellulose nanofiber

Social issues as the starting

point for initiatives

Electrified products as a percentage of total sales =

Sales of electrified products

Total sales in related areas(Powertrain, chassis and vehicle safety, electronics)

Keep global average temperature rise below 2°C compared to pre-Industrial Revolution levels*

Expand range of products with virtually zero greenhouse gas emissions by 2050

Electrified products contributing to CO2 emissions reduction, as a percentage of total sales: 50% or more by 2030

■ KPIs/Targets for 2030

■ Goals for 2030

The Aisin Group's Goals and KPIs/Targets for 2030

* As of 2100 (stipulated in the 2015 Paris Agreement)

Social Issues that the Aisin Group Can Contributing to

The Aisin Group announced in June 2019 that we will prioritize seven SDGs to address to contribute to realization of a sustainable society. We subsequently reviewed KPIs and targets for 2030 to ensure that these priority issues are thoroughly addressed, and announced them to the Group at a Sustainability Conference on February 13th. The details of KPIs and 2030 targets are still in the process of gaining approval at the management level, but in this article will discuss the significance of some of these efforts, taking "action to prevent global warming" as an example.

It is vital that we remove barriers between departments and companies, consolidate our knowledge and human resources, and carry out operations with an awareness of how all members of the Group will contribute to the realization of a sustainable society through SDGs.

One Team

Owning the issue

What each Aisin Group team member should do to achieve 2030 targets

Global averagetemperature rise

Global warmingaccelerates

4℃ or moreElectrified productsas a percentage oftotal sales today

Aisin Group

Goal

Percentage oftotal sales in 2030

Doing whatwe can

do right now

To ensure that our business activities contribute to resolution of social issues, we focused on the optimal state of the world in 2030 and calculated in reverse to determine what should be done now, rather than simply on "doing what we can and accumulating results." Having decided on "what should be done now," we are in the process of setting KPIs/Targets for 2030.

Old approach

Aisin Group

New

approach Goal

Percentage of total sales in 2030

Global average temperature rise

Less than2℃ Electrified products

as a percentage of total sales today

Doing what we should do right

now

Accumulatingresults

(letting things runtheir course)

Electrified products account for

50%or more of total sales

No.01

Do you understand the social value of your day-to-day work?Here are some of the ways our work is connected to SDGs.

SDGs WorkandConnect!

08 09

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April, 2020April, 2020

GROUP NEWSNEWS In this section, we present some

of the activities of the Aisin Group

companies around the world.

At the FY2019 Toyota Motor Corporation awards, Aisin Seiki won awards in two categories, a Technology & Development Award and a Superior Cost Improvement Award, and Aisin AW won a "Technology & Development Award." (Aisin Seiki March 3rd, Aisin AW March 9th)

Three "L-boshi" Stars

High Praise for Initiatives to Support Women

Aisin AW cleared a review and was accredited with the highest rank of 3 stars under the Ministry of Health, Labor and Welfare's “L-boshi” system, which evaluates companies' promotion of advancement of women's careers including women as a percentage of all hires, continuation of employment, growth in the number of female managers, and number of overtime and day-off work hours. This is the first 3-star ranking for an Aisin Group company. (Accreditation ceremony held on February 27th)

Accreditation as a "Semi-Nadeshiko" companyAisin Seiki has been recognized as a Semi-Nadeshiko Brand, second only to a Nadeshiko Brand, under an evaluation program jointly implemented by the Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange to highlight listed companies that promote women's advancement. Emphasis was placed on incorporating diversity promotion into business strategies, pu t t ing f rameworks in p lace fo r women's career advancement, and changing managers' perceptions. (March 3rd)

Toyota New Yaris Equipped with Two Aisin Group ProductsToyota Motor Corporation's new Yaris is equipped with the new ADVICS "Standard ESC Modulator" and Aisin Chemical's structural adhesive "Feruco 7000."

Omnidirectional Monitor Installed in New Suzuki HustlerThe new Suzuki Hustler is equipped with Aisin Seiki's Omnidirectional Monitor. By processing four feeds from cameras mounted on the front, rear, left and right of the vehicle, it combines composite images to displays a 3D view of the vehicle's surroundings as well as a bird's-eye view.

Aisin Keikinzoku Marks 50th AnniversaryAisin Keikinzoku held a commemorative ceremony to mark the 50th anniversary of its establishment. President Nakamura expressed his aspirations for the next 50 years, and awards were presented to long term employees. (February 10th)

Aisin Takaoka Marks 60th AnniversaryA ceremony was also held at Aisin Takaoka, which celebrated the 60th anniversary of its founding. Long term and outstanding employees were recognized and a commemorative tree was planted after the ceremony. (March 6th)

Awards from Toyota Motor Corporation for FY2019

▶Superior Cost Improvement Award

▶Technology & Development Award

Aisin Seiki actively participated in a wide range of activities, such as RRCI*1 and SSA*2, and were recognized for implementing smart standards including more relaxed appearance standards. We made significant reductions in vehicle costs and improved product appeal by working with stakeholders such as Group companies and affiliates, as well as Toyota Motor Corporation's vehicle plants. *1 Represents the Japanese equivalent of "quality, affordability, cost, innovation" *2 Stands for "Smart Standard Activities"

[Electric water pump for lightweight and low-cost engines]Aisin Seiki designed a 3D impeller with optimum shape through rigorous water flow analysis, realizing the world's highest efficiency of 52%. Higher efficiency leads to more compact size and lighter weight.

[Automatic parking system with 360° peripheral PKSB (jointly developed with Denso, software supplied by Aisin Seiki)]The system controls steering wheel, accelerator, brake, and shifting to assist parking operations. Four cameras enable lane marking recognit ion for high-precision parking even in parking lots without white lines, or in dark places.

▶Technology & Development AwardAisin AW developed the new CVT "AWFCX11," which is installed in the Toyota Yaris. In addition to improving fuel efficiency, it is more lightweight and compact.

Aisin Seiki

By improving brake response performance compared to p r e v i o u s g e n e r a t i o n , Autonomous Emergency Brake responds not only to cars but also to pedestrians stepping out onto tha road. Contributes to improving small vehicles' collision avoidance functions.

ADVICS

Aisin AW

Simultaneous Prizes in Three Categories from Honda Excellent Supplier Award from Changan AutomobileAisin AW was selected from approximately 460 suppliers to receive an Excellent Supplier Award, the highest award presented by the company, in recognition of our overall development and production capabilities. We have won awards from the company at 12 consecutive awards ceremonies. (January 17th)

Thai Group Companies Jointly Engage in Tree Planting Activities11 Aisin Group companies in Thailand joined forces to plant trees. This is one of numerous social contribution activities that have been conducted locally in Thailand. With this initiative, all 23 Aisin Group companies in Thailand have carried out tree-planting activities.

Used for lower back, A-pillar, floor cloth and wheel house interior and exterior.

Aisin Chemical

Structural Adhesive "Feruco 7000"

Standard ESC Modulator

At Honda Motor's 2020 suppliers conference, Aisin Seiki received Excellence Appreciation Awards* in three categories, Development, Sustainability, and Cost. This is the first time these three awards have been presented simultaneously. The Development Award was for our work on Honda Motor's Gesture Control Sensor, the world's first, the Sustainability Award for activities in the ESG field, and the Cost Award for our efforts to reduce the cost of N-BOX power sliding doors. (January 10th) *Awards presented to those of Honda's approximately 650 suppliers that made significant efforts in the areas of cost, quality, development, parts, and sustainability.

Newproducts

10 11

Tree-planting participants

3D view (view from outside vehicle)View from above

AW China President Kusafuka receiving an award plaque (fifth from right)

(From left) Aisin Seiki President Ise, TMC Purchasing Group Chief Officer Shirayanagi

(From left) TMC Purchasing Group Deputy Chief Officer Matsuyama, Aisin AW President Ozaki

(From left) Honda Motor President Hachigo, Aisin Seiki President Ise

After the awards ceremony, President Hachigo visited the Aisin Seiki Shintoyo Plant and observed the N-BOX PSD module line.

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OkazakiKarawang

Aisin Livelan began at Aisin Seiki's L&E Product Division, and has a 24-year history in the remodeling and renovation business and a track record of more than 50,000 installations.Residential renovation means creating a custom-made house. Each family has different needs and arrangements that work for them. This is why we consider residential renovation to be part of the service industry rather than the construction industry, and to deliver various services through residential renovation. Aisin Livelan's greatest wish is to share the joy of creating a home and see the satisfied smiles of our customers.

What kind of area is Okazaki?

Remodeling and Renovation to Bring Smiles to the Faces of Residents

Masataka KawamotoResidential Dept.

Aisin Livelan has entered various renovation competitions to improve our staff's ability to deliver proposals to customers. We have won awards for eight consecutive years. In fiscal 2019 we won in three competitions, including the LIXIL Members Contest, where our project was selected out of 1,200 and won second place, second only to the grand prize. Based on the award-winning projects, we hold study sessions with staff and conduct activities that build customer satisfaction.

The Aisin Livelan Okazaki branch is located in Okazaki, which is also home to Okazaki Castle where Shogun Ieyasu Tokugawa was born. He founded Edo Period (1603-1868). With cherry blossoms in the spring and fireworks in the summer, the park is an oasis for city residents year-round.

Haccho miso, made with soybeans from the Yahagi River area and salt from Mikawa Bay, is a local Okazaki City specialty. It is characterized by a unique flavor and the rich umami (taste) of soybeans, and its popularity has been increasing not only in Japan but also overseas in recent years.

AT Indonesia was established in July 1997 with joint venture of Aisin Takaoka, Astra Otoparts and others. We have been continuing operation for more than 22 years and are one of the largest casting companies in Indonesia. We are not only focusing on casting processes, but also dedicating to machining and metal forming processes. With sufficient engineering support and pattern design capabilities, as well as quality

assurance in every process, we are committed to be the best casting supplier to the Indonesian automotive industry. Our philosophy is "Future Creation with QUALITY SUPREMACY."

Address: Jln Maligi III Lot H1-5, KIIC Karawang Barat, IndonesiaBusiness: Iron casting, metal forming and machining of automotive products Established: July 10th, 1997Employees: 1,393 (as of February, 2020)Main products: Engine components, transmission components

P R O F I L E

What kind of area is Karawang?

▲KIIC, where AT Indonesia  is located

PT. AT Indonesia(Karawang, Indonesia)

▲At the competition

Construction  project that  won second  place

▲Okazaki Castle and spectacular fireworks Photo provided by: Okazaki City ▲Family visit day

▲ Haccho miso  with the rich  umami (taste)  of soybeans Photo provided by: Okazaki City

Yohanes KusmonoManufacturing Dept.

◀A monument with a rice motif towers in the center of Karawang

Tatsuya AdachiResidential Dept.

Nobuko OkudaResidential Dept.

Karawang is famous for being one of the largest rice production areas in Indonesia. It has a symbol of rice as a monument in the city center. Karawang is also famous as an industrial area. There are 5 industrial parks, and the largest is KIIC (Karawang International Industrial City). In KIIC, there are many companies including Toyota, Daihatsu and component manufacturers including AT Indonesia.

Aisin Livelan Okazaki Branch (Aisin Development Co., Ltd.)(Okazaki City, Aichi)

Address: 16-2 Higashi-myodaiji-cho, Okazaki, AichiBusiness: Residential renovation planning and constructionEstablished: March 1996Employees: 7 (as of April 2020)

P R O F I L E

What our

is proud of!

company

Continuing to Pursue the Highest Quality to Become the Top Casting Supplier in Indonesia!

Rony ArlesManufacturing Dept.

What our

is proud of!

company

In November 2019, we invited all company members and their families to come to our company. With the theme “FAMILY VISIT – BE FUN BE FAMILY BE PRODUCTIVE,” all members' families can see the factory area. The goal was to introduce the members' families to the AT Indonesia facility, instill pride in our company and support our members in becoming one big family.

Debby FirmantyHuman Resources Dept.

09Vol.

F ND AISINIntroducing our colleagues playing an active part

around the world

12 13

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Rafael Kazuo HorautiOperation II

Aisin AI Brasil Industria Automotiva

I have been engaged in marine accident prevention activities at Utsumi Beach in Minamichita, Aichi during the swimming season for more than 20 years. Training during the off-season is essential. Although it is tough both mentally and physically, and there can be life-threatening dangers, I have the sense of a vital mission to eliminate marine tragedies. There are four fellow participants from the Aisin Group, and I'm happy that more people are getting involved with these activities!

Tadashi OhtaniDevelopment Planning Dept.

Aisin Chemical

20 Years of Snowboarding, Taking on the New Challenge of Racing

Taking Photography Trips to Capture the Most Beautiful Sights in Brazil

Yoshio NakayamaHR & Administration Group

Hosei Brake Industry

Volunteering as a Guide at the Zoo

Lifesaving Activities are My Vital Mission

Takahiro SuzukiTechnical Management Dept.

ADVICS

This floating market is located in Nakhon Pathom Province, a popular tourist destination about a 1.5-hour drive from central Bangkok. You can rent a boat to visit the market and see the entire surface of the water covered with red lotus lilypads and blossoms. The market itself is small and there are not too many tourists. You can also have an aerial photograph taken by a drone!

Yasushi OikeQA Division

Art-Serina Piston

A Thai Floating Market Surrounded by Beautiful Lotus Blossoms

Floating market taken by a drone

Takahiro Suzuki training on the slope

The sun sets over a river in Capitolio

With lifesaving members (Tadashi Ohtani on the far left)

Performance by Love & Kevin

Training during the off season is essetial.

Christmas lights in Guararema

Serving in the bear section of the zoo

Emu-themed supply kit for volunteers

In 2014, when our company was celebrating its 15th anniversary, there was an in-house recruitment of members to form a band (experience optional!) and the group Love & Kevin was born. We get together at a studio once a month and practice, and play live several times a year at in-house social gatherings. A friendly group of people from different sections gets together, and we enjoy playing with a relaxed atmosphere.

Getting Together with Members from Different Sections to Form a Band

Mitsuhiro YamadaAisin Takaoka Security Office, Security Dept.

Aisin Collabo

Approximately 120,000 team members are working in the more than 200 Aisin Group companies worldwide.In this section, people from various countries and regions appear and talk about the fun things they do on their days off!

On my days off I'm busy snowboarding. To mark 20 years since I began the sport, I fulfilled a long-held dream by getting into the world of snowboard racing. In a tournament, however, I didn't achieve a good time record and I was disappointed in myself. I began going to a ski resort in Nagano to train with a coach and AISIN Group friends to be competitive with the snowboarders I aim to be like.

I love both animals and children, so eight years ago I started volunteering as a guide. As a guide to specific sections of the zoo on Saturdays and Sundays, I am in charge of 11 species including the Somali giraffe, the emu, and the polar bear. I strive to explain animals and the ecosystems they belong to in an easy-to-understand manner using specimens and panel materials. In the future, I intend to continue deepening my knowledge and enjoying these activities.

My hobby is photography, which I began teaching myself around five years ago. In addition to photographing friends' weddings and birthday parties, I go on trips with my wife to discover great spots to photograph. The other day I took on the challenge of a night view, which is difficult to capture on film. Brazil is full of magnificent scenery, including marvelous wilderness, and I want to keep on shooting and not miss any great photo opportunities!

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Page 9: Feature : FY2020 Group Management Policy and New ... · Feature : FY2020 Group Management Policy and New Organizational Structure Times of Crisis areTimes to Advance Reforms Company

Vol.09

NEWSClose Up!~Contributing to resolution of aging-related social issues~

What led to the development of "Choisoko"?Choisoko is a mobility support service for elderly people who have difficulty driving their own cars and have trouble shopping, going to the hospital and so forth. Trial operation was launched in July 2018 in conjunction with Toyoake City, Aichi Prefecture. The service has been fully operating since April 2019. Its key characteristic is that it is more precisely targeted than a community bus, with on-demand delivery to a stop near the rider's home. While utilizing our expertise with car navigation technology, we are calculating estimated arrival times based on user information, taking into account destinations and the lengths of time riders take to embark and disembark, so as to optimize route settings.

What is the current status of operation?Currently, full-scale operation is underway at one location in Japan, and trial operation is scheduled at four locations within fiscal 2020, while talks with other local governments are ongoing. In Gunma, Hyogo and Kagoshima, we will be operating in collaboration with local Toyota dealers. In addition, we are advancing linkage with Aisin AW's road surface information utilization service, and in the future we expect to collect data obtained from sensors and cameras, such as road damage and deterioration of signs, and contribute to resolution of local transit issues.

Aisin Seiki has developed the ride sharing service "Choisoko," and we are working with private-sector companies and local governments to expand this business throughout Japan.

I enjoy going out of the house more!

For 20 years I have been commuting from my home to the nearest station building containing

offices. Today I get there via Choisoko, and because the stop is close by, it saves me a lot of

trouble. I have gotten to know other riders, and conversing with them during rides is one of the

pleasures of the service. I will continue using Choisoko to work vigorously, with the goal of

"being active at 90!"

Ms. Tomiko Hayashi (Toyoake City, Aichi)

❹Shibushi City, Kagoshima Pref.(from July 2020)

❺Meiwa Town, Gumma Pref.(from April 2020)

❶Toyoake City, Aichi Pref.(Official paid service from May 2019)

❷Inagawa Town, Hyogo Pref.(from May 2020)

❸Kakamigahara City, Gifu Pref.(from October 2020)

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Comments from ridersComments from riders

In this section, we dig deeper into some hot news stories about the Aisin Group! In-depth commentary answers your questions about what our Group is currently up to.

Ride Sharing Service "Choisoko" to be Expanded Throughout JapanRide Sharing Service "Choisoko" to be Expanded Throughout Japan

■Please follow confidentiality rules when using the two-dimensional bar codes.

Aisin Group Network Magazine “HELLO WORLD” No.13 (April, 2020)Published by: HELLO WORLD Production CommitteeContact information: Public Affairs Dept., Aisin Seiki Co., Ltd. 2-1 Asahi-machi, Kariya, Aichi, 448-8650, Japan TEL +81-566-24-8233