Akebono Brake Industry : Announcement Regarding Foreign Exchange Gains (Non-operating Income) (Consolidated and Non-consolidated)

(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 8, 2023

Company Name: Akebono Brake Industry Co., Ltd.

Representative: Yasuhiro Miyaji, President & CEO

(Securities Code: 7238; TSE Prime Market)

Announcement Regarding Foreign Exchange Gains (Non-operating Income)

(Consolidated and Non-consolidated)

The Akebono Group (hereinafter "Akebono") hereby announces recording of foreign exchange gains (non-operating income) on both consolidated and non-consolidated financial results for the three months ended June 30, 2023, as follows.

1. Details of Non-operating Income

Akebono recorded foreign exchange gains (non-operating income) of 1,478 million yen on

consolidated financial results, and 1,181 million yen on non-consolidated financial results for the three months ended June 30, 2023, as a result of recent fluctuations in foreign exchange markets. These foreign exchange gains occurred in relation to loans of foreign currency to affiliated companies due to fluctuations in exchange rates. The amount of these foreign exchange gains may fluctuate depending on future conditions in foreign exchange markets.

2. Future Prospects

Although Akebono continues to face an uncertain business environment impacted by factors such as exchange rate fluctuations, there is no change to Akebono's full-year consolidated earnings forecast disclosed in "Consolidated Financial Results for the Year Ended March 31, 2023 [Japanese GAAP]" on May 12, 2023. If revisions of the consolidated earnings forecast are expected to be necessary in future, Akebono will promptly disclose information to that effect.

With respect to the foreign exchange gains related to the loans mentioned above on non-consolidated financial results, the same amount of provision of allowance for doubtful accounts is expected to be recorded. As a result, Akebono expects that the non-consolidated financial results have no significant impact on profit attributable to owners of parent.