Initiatives for Strengthening
Competitiveness for Continuous Growth
October 31, 2017
Yasumori Ihara,
President of Aisin Seiki Co., Ltd.

Business Environment and Direction of Future Initiatives
Business environment

For strengthening ourcompetitiveness in the future, we- Changes in society caused by advancement of IT
World trend
will advance initiatives to:- Zero Emissions, Automated Driving, Connected Cars
unify further as a group, andAutomotive industry- Changes in lifestyle (Change from owning to using)heighten our ability to addressthese changes.
Wave of rapid structural changes unlike anything we have ever experienced

Direction of Initiatives

Advancing initiatives for new growth according to the Group’s policies

Direction of Initiatives

Initiatives

Accelerating the growthstrategy while
foreseeing the next
generation

Taking measures such as Zero
Emissions, Automated Driving, andConnected Cars to cope with rapidchanges in the automotive industry• Starting the system to develop nextgeneration technologies by unifying
the GroupStrengthening
competitiveness ofexisting businesses
Reinforcing themanagement base that
supports continuous
growthVirtual company system

Group’s policies

Advancing reinforcement ofcompetitiveness of the existing
businesses that support the present
operations and solidifying foundation forsecuring profits
Reinforcing bases such as safety,quality, and profitability of theoperations that support growthstrategies and improvement ofcompetitiveness• Advancing corporate restructuring to
improve competitiveness and activities tosolve issues• Enhancing the initiatives for the growing
businesses• Improving efficiency of operations andsophisticating them throughcollaboration among the Group
companies

1

Business

Strengthening competitivenessof existing businesses

Accelerating growth strategies
while foreseeing next generation

PowertrainI パワートレインⅠ(1) Global initiative to the increased①グローバルでのAT需要拡大への
demands for Automatic
対応
Transmission(2)
Development of the Powertrain②電動化に向けたパワートレイン
units for Electrification
ユニットの開発

Chassis &Vehicle Safety
II 走行安全ⅡSystem(3) Initiative to increased production of③回生/制御ブレーキの増産対応
regeneration /control brakes(4)
Enhancing foundation brakes by④事業再編による基本ブレーキ強化
restructuring businesses(5) Development of the Vehicle⑤車両運動統合制御の開発
Dynamics Control(6)Development of the Automated⑥自動バレー駐車の開発
Valet Parking

III Body Improving the business efficiency by
restructuring the overlapping areas

Information/IVelectronics

 Improving competitiveness ofelectronic components (Introductionof ECU simple slim line, etc.)

To be explained
today

Initiatives of Each Business Development of the Hospitality
Services Development of the Location Based Services
 Enhancing development of core technologies inview of Powertrain Electrification

2

I

Powertrain Business

Market Trend and Direction of Initiatives
Forecast of automotive market by Powertrain(based on the scenario of popularization of EVs)
[Units: 10 thousand cars a year]

Increase

10,000 Establishing the lineup for electrification
by utilizing the technological bases thatwere developed for the 2-motor HV
EV

Increase

Increase

Decrease

ManualTransmission

201720202025

Maintaining the Automatic Transmission
production capability by capturing thedemands for the 1-motor HV

PHV
HV
Automaticdevices(AutomaticTransmission,etc.)

5,000

Accelerating growth strategies
while foreseeing next generation

2030-2040[year]

Strengthening competitivenessof existing businesses
 Improving capability of the global
production centering around China andJapan- Assembly: Increasing further the domestic
production capability- Functional components: Efficiently
improving the integrated system ofproduction from rough shape materials bybringing the initiatives of the whole Group3

IPowertrain Business: Strengthening competitiveness of existing businesses(1) Global Initiative to Expanded AT Business Increasing the production capability globally centering around China and Japan
Production volume ofAutomatic Transmission

16%
◆17%
◆

Production volume of each area

20%

North America◇
Production volume ofAutomatic Transmission

Market
The number of automated devices+ HEVs in the market
share[Units: 10 thousand units a year]

1,250[Units: 10 thousandunits a year]

Increase in local
production to respondto the increased
demands fromChinese OEM- Increase in capabilityof Tianjin AW: 30

ChinaAssessing
increase ofthe demands
for automateddevices andexpansion ofelectrification[Units: 10 thousand
units a year]

・・

Determinedvolume[Units: 10 thousand
units a year][Units: 10 thousand
units a year]

Japan

Increase in local
capability andchangeover to TNGA
- Increase incapability of existing
plant: 40- Establishment of AW
Mizunami: 40

ASEAN
Increased production ofcommercial FR- Increase in capabilityof AW (Thailand): 20

・・・・

・・

Various methods are considered for improvementof investment efficiency.
[year]

4Improvement of Automatic Transmission Production
Capability (Assembly)

AW Mizunami Co., Ltd.
Location

Mizunami, Gifu Prefecture

Newlyinstalled line

Start ofproduction

New Company

Increased assembly capability of Tianjin
AW Automatic Transmission Co., Ltd.
Location

Tianjin, China

Assembly of FF 8-speed AutomaticTransmission (400,000 units per line)
Machining the Automatic Transmission
components

Newlyinstalled line

Assembly of FF 6-speed
Automatic Transmission (300,000units per line)

Assembly of Automatic Transmission: Feb. 2019 ～Start ofproduction

Apr. 2019 ～Machining of components: Dec. 2018 ～* Having been released to the press on Sept. 26, 2017
(Acquisition of land only)

5Improvement of Automatic Transmission Production
Capability (Components)
 Efficiently improving the integrated system of production from roughshape materials by bringing the initiatives of the whole Aisin Group
Machining components andsubassembly

Rough shape materials

Assemblyof AT

Aluminum parts (die casting to machining)Nishio, Aichi Pref.
Transmission case
(Aluminum die casting)Expandedarea

First phase: 11,100 m2
Second phase: 5,400 m2

Start ofproduction

First phase: Aug. 2017 ～Second phase: Oct. 2018 ～Rendering
54m
100m111m

2nd phase

1st phase(Expanded this time)(Completed)Cast iron parts (casting to machining)
Aisin
Takaoka
Aisin
Sinwa

Expansionof Aisin
Takaoka’s
main plant

Location

Toyota, Aichi Pref.

Production
item
Expandedarea
Start ofproduction

Differential case(machining)
600m2

Expansionof Aisin
Sinwa’s
main plant

May 2018～

Location
Production
item
Expandedarea
Start ofproduction

Nyuzenmachi,
Toyama Pref.
Differential case(machining)
2,800m2
Jun. 2018 ～High-functioning parts (press to subassembly)

Aisin AW
Industries

Press process isconducted in theexisting plant.

Acquisitionof new plant(tentative)

Location

Wakasa, Fukui Pref.

Production
item

Torque converter, etc.
(subassembly)

Expandedarea
Start ofproduction

47,100 m2May. 2018 ～Securing competitiveness ofAutomatic Transmission by bringing
the initiatives of the whole Group

Aisin
Seiki

Expansion ofNishio Die
Casting
Plant’s southbuilding

Location
Production
item

6

I

Powertrain Business: The domain that will grow in the next generation(2) Development of Powertrain Unit for Electrification
 Establishing the lineup for Electrification by utilizing the technologicalbases that were developed for the 2-motor HVSegment
FF2-motor
PHV

1-motoreAxle

48V/PHVEV
FCV

1-motor / 48V

Enhancing as a mediumterm growth segment

 Accelerating development(Advancing development of 1-motor for starting massproduction in 2018)
 Enhancing proposals to Chinese and European OEMs Producing locally by using the existing production lines for
Automatic Transmissions

Light fourwheel cars
/ABCeAxle

Largesize C
DBeing mass produced

FRSmallsize DDSUV/ LDTTruck

To be mass produced
soon

Being developed

Enhancing development inview of application to PHV Expanding the lineup for application to premium 4WD vehicle
 Enhancing development while considering also that theproducts for the high-capacity vehicles are deployed as theelectric drive system for PHV by adding batteries

EV / FCV

Enhancing to make it a longterm core business Proposing as the EV unit package containing the motor,
inverter, reduction gear and transmission
 Developing the system that enables controlling the drive
control system containing the brake such as rear steering,
regenerative cooperating braking system, etc.

7

Initiatives for Development of 1-motor HV
Conventional AutomaticTransmission unit

1-motor HV unit
Added

Motor
T/AT/A

T/A

8-speedAutomaticTransmission

8-speed AutomaticTransmission

Added
Abolished

Torque converter

Enginedisconnection
clutch< Features and good news > 1-motor HV system with the existing Automatic Transmission’s torque converter replaced by a combinationof a motor and a clutch The global existing facilities for production of Automatic Transmission can be used for the 1-motor HV.
 Drastic improvement of fuel economy is realized by the EV driving using a built-in clutch for disconnecting
engine.
 Add-on motor for the engine output realizes improved starting acceleration performance.
 We achieved the variable speed feeling being similar to or better than the existing Automatic Transmission.

8Initiatives for Development of 1-motor HV
Forecast of automotive market by transmission(based on the scenario of popularization of EVs)
[Units: 10 thousand cars a year]EV

10,000Comparison in driving force between 1-motorand 2-motor
Enginetorque(N-m)
1-motorIncrease
Increase

2-motorHV

2-motorDecrease

1-motor
HV
5,000

Automaticdevices(AutomaticTransmission,etc.)

2000
2-motor HV

ManualTransmission

 Car runs gracefully andflexibly.
 Excellent in fuel economy
when driving on city streets

Weight of vehicle (kg)

1-motor HV
 Being compatible with hightorque vehicles
 Excellent in fuel economy
when driving at high speed

Securing a firm position in the hybrid market by having the 1-motorand 2-motor lineups and increasing the ability to make proposals

9Initiatives for Development for EV
Changes in components caused by a change to EVs and Aisin’s initiatives

ＥＶGas vehicle
Engine main body

Lubrication system Fuel system

 Oil pump
 Cylinder head Cylinder head cover  Oil filter Oil pan
 Cylinder block Oil cooler
 Piston Connecting rod Cam shaft
Suction system
 Cylinder liner
 Air cleaner
 Crank shaft Throttle body
 VVT
 Intake manifold
 Bearings
 Resonator
Power transmission device

 Transmission
 Differential
 Torque converter Clutch

Ignition device
 Ignition coil
 Ignition plug

Hydraulic brake

Starting device

 Hydraulic unit Booster Master cylinder Starter Flywheel

The devices indicated in blue are theproducts supplied by the Aisin Group.

 Fuel tank
 Fuel filter Fuel pump
 Injector
 Fuel pipe

Cooling system

Electric drive unit

Secondary battery

Motor

Battery components

InverterBattery frame

Transmission / Reduction gear

Vehicle mountedcharger

DC/DC converter

Contactless power
supply during traveling Water pump
 Cooling water valve
 Radiator Hose Grille shutter

Regenerative cooperatingbraking system

High-voltage wiring

ExhausterElectric brake

Lightweight framework

Electric vacuum pump

Cooling system Exhaustmanifold
 Muffler Fr/Rr pipe

Chassis Suspension
 Control
suspension

Electric compressor

The devices indicated in white are theproducts supplied by the Aisin Group.

Although the components change drasticallybecause of electrification of internal combustion
engine, etc., we start and enhance development ofEVs’ many major components early.

10II Chassis and Vehicle Safety System Business

Market Trend and Direction of Initiatives

Gasoline

Regeneration/Control brakeControl

HV・PHV

Level 4

Negativepressure
booster
ABSESCElectric booster Regenerative
cooperation
 Compatibility with low
negative pressure

Automatedemergency brake
Compatibility withAutomated DrivingParkingbrake Accelerating development in the Vehicle
Dynamics Control field and the AutomatedValet Parking field for realization of theAutomated Driving

FCV EV

Level 2
Level 3

Automated
Driving

Pressurization

Accelerating growth strategies
while foreseeing next generation'20

MechanicallyElectrically driven
driven(Caliper integrated type,electric parking brake, etc.)

Next-generation control products

Powertrain
Electrification

Foundation
brake

Effects on brake components

Technologicaltrend

Changes in major brake components

Strengthening competitivenessof existing businesses Advancement for expansion ofElectrification and sophistication of theautomated emergency brake (AEB)- Regenerative cooperating braking system :Improving the domestic production capability- Control brake: Development of the next-generation
product and expansion of production

 Clarifying role-sharing based on expansion
and popularization of the electric parking
brake (Business restructuring)- Establishing the business operating structurelead by ADVICS

11

II Chassis and Vehicle Safety System Business: Improving Competitivenessof Existing Businesses(3) Measures for Increasing Production of Regeneration/Control Brakes

Demands for the regenerative cooperatingbraking system and the control brakes areincreasing along with advancement ofElectrification and Automated Driving.

Demands for electronic devices such as
motors, ECU, etc. are increasing along withadvancement of Electrification.

Estimated production

Estimated production[in units of 10
thousand units a year][in units of 10
thousand units a year]

150

~
~
[year]

Considering
expansion ofHanda Plant

Motor

Aisin Seiki

Regenerative cooperatingbraking system

ADVICS~~[year][in units of 10
thousand units a year][in units of 10
thousand units a year]

1900

ECU

Control brake

400

168

~~~
~
[year][year]

12II

Chassis and Vehicle Safety System Business: Improving Competitivenessof Existing Businesses(4) Enhancement of Foundation Brakes by Restructuring the Business Increasing competitiveness of the foundation brake business by restructuring and converting
into the business operating structure lead by ADVICS, establishing the optimum production
system, and collaborating in development of new products, etc.
ADVICS GroupADVICS
Enhancingcollaboration

Kariya Plant

Designing drumbrakes

Increasing productionof foundation brakeproducts

Main plant for foundation
brake (actuation)
products[Main products]- Drum brakes- Disc brakes- Axle housings[Main products]- Boosters / Master cylinders- Disc brakes- Drum brakes
Optimumproduction

Handa Plant
Main plant for regeneration/
control brakes for which
demands are increasing[Main products]- regenerative cooperatingbraking system- Control brakes (ESC)AS Brake
Main plant for electric
parking brakes for which
demands are increasing[Main products]- Electric parking brakes- Disc brakes

New company, Nisshinbo
Brake

Hosei Brake

ADS

Designing systems

 Hosei Brake becomes a consolidated
subsidiary of ADVICS- ADVICS’s shareholding ratio: 50.1% (throughthe third-party allocation)- Implementation of capital increase: End ofFeb. 2018 (tentative)
 Transfer of the drum brake business toHosei Brake from Nisshinbo Brake- Implementation of transfer: End of Feb. 2018(tentative)*Premised on agreement by the Japan Fair
Trade Commission[Overview of the transferred business]
Products: Drum brakes for passenger cars andcommercial cars
Customers: Hino, Suzuki, Ford, etc.
Sales: 15 billion yen (as of March 2017)
Bases: Toyata, Aichi Pref. and Thailand* Having been released to the press on Aug. 30, 201713

II Chassis and Vehicle Safety System Business: The domain that will growin the next generation(5) Development of Vehicle Dynamics Control
What is the vehicle dynamics control?
<Recognize>
SensorHighaccuracy
map・・・Position from thedestination
Traveling position ofa car

Other
car

Other
car

Setting a running
path
Setting a running
speed

Other
car

Other
car

Passing lane

Infrastructure

Path (Traveling plan)following control

Guiding a car tothe destination

Initiatives madeby Aisin Group
Actuation system
Moving actually<Traveling>
Powertrain<Turning>
Steering

Other
car

<Stopping>Brake

The vehicle dynamics control controls collectively thevarious requests* related to the actuators for operating thevehicle.
* Various requests at this moment- ABS/ESC,- Cruise control,- Lane keep assist,- Automatic brake,etc.

Vehicle Dynamics Control
Controlling the vehicle motion

Driving lane

Othercar

Making a
traveling plan

Driving lane

Situation around acar, other cars,
obstacles, etc.

Estimating
position of a car

Passing lane

Cloud

Recognizing
ambient
environment

Driving lane

Driverinformation

Automated Driving / Drive Assist

Driving lane

Recognition
sensor<Execution><Judgement>* Various requests that will be
added in the future- Automated driving,- Driving assistant,- Following congestion,- Automated parking,etc.

Vehicle motion control<Ride quality>
Suspension
Securing safety ofthe vehicle

14

II Chassis and Vehicle Safety System Business: The domain that will growin the next generation(5) Development of Vehicle Dynamics Control
Pleasures that the vehicle dynamics control can provide
Smooth andstable behaviors

The number ofcontrolled items

Large Cruise control
 Lane keep assist
 Automatic brake etc.
Smooth andcomfortable behaviors<Stress-free>

Stable emergency
avoidancebehaviors<Improved avoidanceperformance>

Marginal
fieldESCABS Following congestion
 Automated parking
 etc.
<Smooth speed control><Stable line trace><Bump assist>

Small
StableState of vehicle

Marginal

Providing safe and secure, high ride quality and pleasure of driving whendriving on normal days

15

(6) Development of Automated Valet Parking
Unmanned type

Sophistication of recognitionand control

Manned type (including remote-controlled parking)(2) Automated driving andparking in thecondominiums’ parking lots(3) Automated valet parking in thededicated parking lots

(1) Automated parking inprivate houses’ parking
spaces and generalparking lots

Platform

2020

Dedicated parking lot thatkeeps out people

Solving all the issues
related to parking
2003
Parking Assistant(IPA)

Autonomous sensing

Collaboration withinfrastructure is necessary.
Distance that should be recognized (m)Developing the core technologies for the integrating Parking AssistantSystem (IPA) and establishing early the technologies for the completelyunmanned Automated Valet Parking in the dedicated parking lots16

(6) Development of Automated Valet Parking
System of the automated valet parking and provided pleasure
OutboundParkingOutbound

By sending remotely the parking request after getting out of a car in thespecified place, the car is automatically moved to a parking space.

The car is parked automatically after the unmanned automatic lowspeed travel in the parking lot.

Pleasure

Sending remotely theoutbound request.

After the automatic low-speed travel in the parking lot, thecar is stopped at the specified place for getting in/out ofthe car.

Elimination of troublesome parking Troublesome parking is completely eliminated.
Reduction of burden caused bymoving on foot / carrying

Reduction of accidents
Prevention of crimes

Moving between the stores and the parking lots is not required.
Accidents in the parking lots are reduced because of
automated driving in the parking lots.
Crimes in the parking lots are prevented as no one enters
the parking lots.

17