Progress & Activity Plan Machining Chip Improvement Report to： Board of Directors Progress & Activity Plan Machining Chip Improvement PT. Akebono Brake Astra Indonesia Mar 20, 2017 Copyright Akebono Brake Industry Co., Ltd. All Rights Reserved.

Current AAIJ condition Chip stuck at machine walls, jig & fixtures because of small flow and pressure of coolant : Low power pumps  AAIJ 0.75 kW, ACG 7 kW Small volume chip conveyor Small drum filter No magnet to catch fine chips & body casting carbon Capacity of drum only 230 litre/min if use high volume pumps flooding chip conveyor

Activity Plan Permanent countermeasures Based on ACG benchmark, to clean up machine room inside (jig, tables, tools, walls) we need to replace all machining pumps with bigger size from 0,75 kW to 7 kW for each machine. We also need to increase chip conveyor size from 500 – 600 litres to 2,000 litres for 4 machines equipped with magnet scraper and magnet separator Option 1 (chip conveyor with 3 drum filter with magnet separator)

Activity Plan Permanent countermeasures Option 2 (chip conveyor with no drum filter with magnet scraper & separator) : ACG Investment needed (estimation) 1 chip conveyor : IDR 200,000,000 (new) – local supplier IDR 100,000,000 (modification) – local supplier Lead time : 3 weeks

Activity Plan Additional body shower inside machine Permanent countermeasures Additional body shower inside machine Replace washing machine Investment needed

Activity Plan Temporary countermeasures For non thru coolant machines, remove the drum filter replace it with mesh plate and connect it with high flow pumps

Activity Plan Temporary countermeasures For thru coolant machines, make buffer tank with bag filter and cyclone and equipped it. Coolant supplied from chip conveyor before drum filter. Buffer tank : 300 litre

Equipment list to improve Matrix what each line needed Line Chip Conveyor Body washer Washing machine Magnet scraper Sel 2 4 (New) 10 units X Sel 4 4 (modify) 15 units 1 unit 4 units Sel 5 Sel 3 Sel 7 Sel 8 Sel 9 3 (modify) 3 units Sel 6 2 (new) 13 units 5 units MWC1 2 (modify) 2 units MWC2 MWC3 6 units PWC

Equipment investment Equipment Investment/unit Qty Total Chip conveyor In IDR millions Equipment Investment/unit Qty Total Chip conveyor (modify) 100 22 units 2,200 (new) 200 10 units 2,000 Washing machine 250 6 units 1,250 Buffer tank with filter bag & cyclone 60 4 units 240 Body shower (piping) 10 101 units 1,010 Pumps & accessories 30 202 units 6,060 TOTAL 12,760

Schedule (short term)