18th AnnualNorth American

Supplier ConferenceMay 18, 2017

Presented by

Yoshimasa Kimura

President, CEO and COO

“Growth Through the Pursuit of Quality”

2016 Recap (Market)

2/12

• Steady US economy - Low Fuel Cost

• Strong NA Automotive Sales: 17.6 Million Units Sold (0.4％ UP)

• Sales in Mexico： 1.6 Million Units Sold (18.6％ UP)

• Sales Share

SUVs and Light Trucks: 60.7% …Best Selling Items

Light Vehicles: 39.3%

• Expansion of Production in Mexico

・Recall volume: 51.3 Million units (0.5% UP)

Breaking record 2 years in a row

・Political changes with the new Trump administration

TSMMTR

MMF

MIT

Photos of tree planting events at

overseas locations

Corporate-wide anniversary events

3

70th Anniversary

AMC

2016 Recap (MITSUBA)

3/12

2016 Recap (MITSUBA)

4/12

• Achieved 328 Billion JPY (2.925 Billion USD), the

highest sales in history (Consolidated)

• Sales expanded in China, Asia and North America

• Number of Associates Worldwide

30,429 Associates (Jan. 2017)

The Americas : 4,419 Associates (Mar. 2017)

2016 Recap (North America)

5/12

• Merger of AMC

and MBT (AMB)

- 2015

• Expansion of Sales

in Mexico

• CMM5 TDM

499 552 558

687 697 666

103

108 119 99

145 193

224 242 275

TEM 41 PMM 0

TDM 13 TDM 14

742 805

870 911

952 955

-

100

200

300

400

500

600

700

800

900

1,000

2012 Actual13.14 MXN/USD

2013 Actual12.75 MXN/USD

2014 Actual13.30 MXN/USD

2015 Actual15.87 MXN/USD

2016 Actual18.62 MXN/USD

2017 Plan18.18 MXN/USD

North America Sales HistoryAMC MBT CMM TEM PMM TDM

2012 2013 2014 2015 2016 2017

2016 Recap (North America)USA

L-MACS (Global ERP system) kicked off

WM22, new RR Wiper motor production launch

will be used for various vehicle applications.

AMI: Motor Assy (utilization of robots)

AMM: Armature Assy

AMB: BRKT, other parts

Mexico

Wiper Assy production launch for Audi

New FR wiper motor (WM10B) line added

New PW motor (WR19) production launch

TDM (Tatsumi de Mexico) operation started

CMM5 changed to TDM effective January 2016

6/12

Rear Wiper

Type : WM22

TDM

7/12

W o r k i n g t o g e t h e r t o e n h a n c e

competit iveness in the Americas

AMM/AMI/AMB, USA

CMM1/CMM2/CMM3/

CMM4/ TDM, Mexico

MBL, MABL, Brazil

Americas Operation

Customer Concerns/ Requests

8/12

• Activities focused on Quality

- Eliminate any gaps between final products and intended designs

- Thorough control of critical items

- Effective use of FMEA and FTA

- 4M change point management

- Lot traceability

• Customer quality audits:

- Customers also plan to visit Tier 2 & 3 suppliers

Key words: “Growth through the Pursuit of Quality”

FMC 2018 Odyssey and Accord will be launched

- Thorough preparation needed

Competitiveness Improvement

- Essential factor of customer’s sourcing decisions

・ Need to flexibly respond to customer demands for

production volume changes

・ Smooth launch of New Vehicle Models

・ Achieve cost down targets

9/12

Customer Concerns/ Requests

Challenges•Sales Expansion- Pursuing motor business opportunities with big Tier 1 customers e.g.: PW motor, seat motor, etc.

• Increase Local Procurement- In response to potential risks of new policies of the Trump administration and an increase in logistics costs

•Capacity to respond to production volume changes

•Enhance the Quality System (Mitsuba, Suppliers)

- Speedy analysis and countermeasure for warranty claims

•L-MACS implementation at CMM and TDM in Mexico

(Jan, 2018) 10/12

Personnel Changes

• AMC VP Onai→ VP Ichinokawa

• AMN Sales Gen. Mgr. Naito

• AMB Senior Advisor Onda

• AMB Production Control Kamimura →Torai

• CMM Production Control Murakoshi → Kanbe

• CMM Purchasing: Nakabori→ Kaneko

11/12

MITSUBA VISION 2024

Enter a New Stage with a New Global Viewpoint

Create new businessmarkets

Meet the needs for safety and reliability

Facilitate the development of individuals and global communications

Enter a New Stage with a New Global Viewpoint