NGK SPARK PLUG CO., LTD.
Integrated Report 2022
Year ended March 31, 2022
On April 1, 2023, NGK SPARK PLUG CO., LTD. will change its name to Niterra Co., Ltd.

Environment & Energy
Mobility
To an energy efficient 
and environmentally-
friendly society
To a mobile society 
that is fun and 
convenient
  Using sensing technology to improve industrial efficiency
  Stable supply of regenerated energy
  Providing maintenance services according to your lifestyle
  Improving electricity using ceramic components
  Providing MaaS (Mobility as a Service) to fit special needs
Communication
A high-speed 
communication 
society where virtual 
and reality are 
connected
  Provide infrastructure parts to support high-speed 
communication
To bring 
advanced 
medical care to 
people all over 
the world
Medical
  Non-invasive diagnosis and treatment, provision of preventive 
equipment and services using ultrasound technology
The Future 
We Envision
Realization 
of a sustainable 
society
NGK SPARK PLUG CO., LTD. Integrated Report 2022
01

We contribute to developing a sustainable society, thereby improving our corporate value.
CSR and Sustainability Charter
We are committed to delivering new 
value to people all over the world and 
contributing to society, as expressed in 
our corporate philosophy.
This commitment is associated with our 
concept of sustainability, which is to 
help solve social issues through 
business activities.
The CSR and Sustainability Charter 
presents a summary of this concept.
We build relations 
of trust with our 
stakeholders while 
making highly 
transparent 
decisions and 
actions.
We cocreate and 
provide new value 
to help solve social 
issues.
Our Thoughts
I G N I T E  Yo u r  d r i ve ,  d re a ms  a n d  S P I R I T
Corporate Message
The Nittoku Way
NGK SPARK PLUG has been a leader in manufacturing for 80 years.
Our desire is to live in a healthier and more beautiful world where all our 
dreams can come true.
Every day, we continue to ignite the passion in our hearts and spark new 
ideas in our minds to focus on achieving our goals for the future.
Our mission is to continue to make the world a better place.
We will pursue future opportunities and improve NGK SPARK PLUG’s 
unique and advanced technologies.
Our diverse workforce will ignite our company to create new products and 
to be a leader in innovation.
We will enhance our competitive advantage by understanding and 
adapting to global changes.
Fueled and motivated by our own drive, NGK SPARK PLUG will continue 
to IGNITE YOUR SPIRIT, instill passion in your hearts, and deliver 
cutting-edge solutions as a leading manufacturer in the world.
At NGK SPARK PLUG, we aim to contribute to people all over the world by linking people 
to technologies and delivering new values.
As a truly global corporation, we want to build stronger ties not only with customers and 
communities, but also with the local and global environments. We are always working to 
make our corporate philosophy and our commitments a reality.
Corporate Philosophy
Three elements constitute our corporate philosophy.
With established trust and 
confidence inside and outside 
the company, we aim to 
contribute to the peoples of 
the world by creating and 
putting at their proposal 
new values for the 
future.
Slogan
With full use of the most 
suitable technology and 
our accumulated 
experience, we continue 
striving to offer new 
values to the peoples of 
the world.
We offer a working environment in 
which each one of us is 
encouraged to make full use of his 
or her personality and capabilities. 
With all our power we are 
dedicated to pursue management 
based on trust and confidence.
Ever onward! Always 
mindful of what is the 
best course, we swiftly 
put it into action.
2
1
3
The Nittoku Way refers to a set of philosophies based on business mottos cherished 
by Morimura Gumi, the founding 
company of the Morimura Group.
The Nittoku Way refers to the values of 
the NGK SPARK PLUG Group that all 
employees commit to sharing and 
passing down to the next generations.
CSR
and Sustainability
Charter
CSR
Basic Policy
Corporate
Philosophy
Corporate
Code of
Conduct
Shared Values
Shikai-
Keitei
Shisei-
Shinjitsu
Dokuritsu-
Jiei
Soshi-
Kantetsu
Basic Traits
Involvement
by all
Quality
products
Long-term
Management
Plan
Medium-term
Management
Plan
Corporate Philosophy
Action
Guidelines
Commitment
Management
Policy
Shared Values
The Four Shared Values of the Nittoku Way
Sincerely, do our very best.
Believe in one’s own ability, and 
take actions by oneself.
Shisei-
Shinjitsu
Dokuritsu-
Jiei
Unite efforts with the people 
of the world, and utilize each 
other’s differences.
Have cherished desires, and 
carry it through till the end.
Shikai-
Keitei
Soshi-
Kantetsu
About the Morimura Group, see
P.07
森村グループについて
NGK SPARK PLUG CO., LTD. Integrated Report 2022
02

CONTENTS
01 
The Future We Envision
 
Realization of a sustainable society
02 
Our Thoughts
32 
Message from the Sustainability Officer
33 
CSR and Sustainability Committee
34 
Review of Materiality Activities
35 
 Environment/Responding to Climate 
Change
37 
Human Capital Management
40 
Respect for Human Rights
41 
Discussion between Outside Directors
43 
Corporate Governance
48 
Information Security
49 
Risk Management
50 
Compliance
52 
 Financial Results Highlights for the Past 11 
Years
53 
Global Network
54 
Corporate Profile and Stock Information
55 
Initiatives/External Evaluation
12 
Message from the President
14 
Value Creation Process
15 
Priority Issues (Materiality)
17 
Examples of Materiality Initiatives (1)
18 
Examples of Materiality Initiatives (2)
Medium-term Growth Strategies
19 
Long-term Management Plan
21 
Medium-term Management Plan
23 
 The Finance Officer Outlines the Financial 
Strategy
24 
Business Strategy
28 
 Progress of Creation of New Business 
Pillars and Future Prospects
30 
Intellectual Property
Page 01 
Page 04 
Page 31 
Page 51 
Page 11 
Editorial Policy
NGK SPARK PLUG has been issuing an annual integrated report since 2017 with a view to helping all 
stakeholders deepen their understanding of its medium- to long-term value creation efforts.
Under the 2030 Long-term Management Plan “NITTOKU BX” we formulated in 2020, our 2040 
Vision is to “change drastically beyond the current way,” and we have established the slogan “Beyond 
ceramics, eXceeding imagination.” Based on the vision, we have been pursuing business beyond 
ceramics while keeping ceramics at the core of our operations, along with the major strategic theme 
of transforming our business portfolio that centers on the Automotive Components Group. In FY2021, 
to achieve the Long-term Management Plan, we have formulated a medium-term management plan, 
implementation of which will end in FY2024. This report provides an explanatory overview of these 
plans and their progress, and its theme is getting readers to understand what sort of value the Group 
is delivering.
This publication is also intended to serve as a tool to respond to various opinions and inquiries we 
receive from stakeholders through our business and IR activities throughout the year. We look forward 
to receiving frank opinions from many people.
Period Covered
FY2021 (From April 1, 2021 to March 31, 2022)
*Also includes some information about our FY2022 activities.
Scope Covered
NGK SPARK PLUG Group *Also includes some non-consolidated information about 
NGK SPARK PLUG CO., LTD.
Guidelines for Reference
The International Integrated Reporting Framework, the International Integrated 
Reporting Council (IIRC)
Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for 
Collaborative Value Creation, the Ministry of Economy, Trade and Industry
Forward-looking Statements
This report contains forward-looking statements regarding NGK SPARK PLUG’s 
future plans, strategies and performance. Please understand that actual results may 
differ substantially from these statements.
This report focuses on the information that is essential for the enhancement of our corporate value. 
For details of our technologies, products and financial affairs, please visit our website. For detailed 
information about our sustainability initiatives, please refer to our sustainability website.
NGK SPARK PLUG Integrated Report
Corporate Governance Report
Shareholder Newsletter
Sustainability website
Business Results Briefing 
Presentation Materials
Securities Report
Summary
Detail
Financial information
Non-financial information
NGK SPARK PLUG Communication
https://www.ngkntk.co.jp/english/
https://www.ngkntk.co.jp/
NGK SPARK PLUG CO., LTD. Integrated Report 2022
03
Introduction
05 
Message from the Chairman
07 
History of Value Creation
09 
Business Overview and Business Model
10 
 Changes in Financial and Non-financial 
Position
1 About Us
2 Strategies for Value Creation
3 Foundation for Value 
Creation
4 Financial/Corporate 
Information

1
Page 04 
About Us
NGK SPARK PLUG CO., LTD. Integrated Report 2022
04
05 
Message from the Chairman
07 
History of Value Creation
09 
Business Overview and Business Model
10 
Changes in Financial and Non-financial Position
C O N T E N T S

Message from the Chairman
The business environment is drastically changing. It is time companies had the courage and readiness to change with it. It is 
time to create new businesses that go beyond the current way. How can values be transformed, and how should the reason 
for existence be established as a company? We asked Chairman of the Board Shinichi Odo for his thoughts.
The NGK SPARK PLUG Group, since its founding in 1936, has 
embraced the challenge of developing various technologies in 
order to contribute to the development of society based on the 
core technology of ceramics. Our growth has been centered on 
the core business of automotive internal combustion engine 
products, such as spark plugs and sensors, based on the cu-
mulative effects of such efforts. We have built relationships of 
trust with our customers and a stable revenue base.
However, the automotive components business, with which 
we have grown together during our more than 80 years of histo-
ry, is now entering a new era. The structure of the industry itself 
is undergoing a major transformation amid accelerating global 
moves toward achieving carbon neutrality (a decarbonized soci-
ety) and progress with technological innovations such as electric 
vehicles (EVs).
According to the International Energy Agency (IEA), the com-
bined sales of plug-in hybrid vehicles (PHEVs) in 2021 totaled 
6.6 million new EVs worldwide, which is 2.2 times higher than 
the previous year. More than 30 million new EVs are expected to 
be sold globally by 2030. Racing to keep pace with China, Eu-
rope and the U.S., manufacturers in Japan have also announced 
EV production and sales strategies.
Amid these waves of change, we have been working to shift 
to a business model that does not rely on internal combustion 
In FY2021, we faced not only environmental issues but also 
threats to the sustainability of society in the form of the spread of 
the novel coronavirus (COVID-19) that began in FY2020. In 
addition, Russia’s invasion of Ukraine triggered new risks. In 
addition to confrontations among the major advanced countries, 
which have been concerns for some time, new rifts formed in the 
geopolitical structure. Furthermore, an unforeseen energy crisis 
now looms. Given the challenge of balancing stable energy 
supply with progress toward decarbonization, securing energy 
presents a major issue related to global market competitiveness 
particularly for Japan, which lacks natural energy resources. 
Industry, government, and academia must work together to find 
solutions.
While the impact of COVID-19 has begun to subside, the 
threat of infections has not disappeared, as seen in the lockdown 
engines. In 2020, we announced our long-term 2040 Vision, 
“Beyond ceramics, eXceeding imagination.” To face the chal-
lenges of the world so that we can 
help bring about a better society, 
we must venture beyond the field 
of ceramics rather than being 
bound by our current businesses. 
We are working to create new 
business pillars with the readiness 
for change.
Meanwhile, the world has many 
internal combustion engines in op-
eration. The automobile industry 
has an obligation to meet demand 
for the maintenance of those 
engines. As a company with a 
leading global market share in 
aftermarket parts, we must fulfill 
our supply obligations to the end, 
while working in collaboration with 
parts manufacturers.
in Shanghai, China. Russia’s invasion of Ukraine is also a 
concern, as is its unexpectedly protracted timeline.
Even amid such a lack of visibility, however, one thing is 
certain: the goal of achieving a decarbonized society by 2050 
remains unchanged. Although the pace of progress has been 
slowed by the energy crisis, we must work together globally.
Initiatives toward achieving carbon neutrality are currently led 
by large companies. However, if they are to operate in Europe 
and other areas where environmental standards are stringent, 
they must carry out such measures across the entire supply 
chain, including suppliers such as small and medium-sized 
enterprises. Otherwise there is no point. In the efforts toward 
decarbonization, we are beginning to see a movement of 
collaboration beyond the barriers of organizations and industries. 
The role of the automobile industry toward the realization of a decarbonized society
An era for cocreation across generations and organizations
We will solve social 
issues with an attitude of 
cocreation and establish 
a unique purpose
Representative Director Chairman of the Board
NGK SPARK PLUG CO., LTD. Integrated Report 2022
05
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Message from the Chairman
It will become important to also have an approach of working 
together with competitors for the benefit of the earth.
I also believe that one of the keys to driving innovation toward 
solving social issues such as carbon neutrality is to activate 
communication between generations. Generation Z, made up of 
people born in the 1990s or later who tend to focus on how to 
be useful in society rather than monetary value, is the generation 
that will be responsible for the next generation of consumption. It 
is also the generation that is serious about solving social issues. 
How can we bring out their opinions and connect them to 
sustainable business? What is needed is the experience and 
knowledge of Generation X, born between 1965 and 1980, and 
Generation Y, born between 1981 and 1994.
It is not a question of which needs to align with which. Instead, 
we should look to communicate toward combining the different 
values of the X, Y and Z generations. Using diversity, we can 
Last year, we introduced an in-house company system to 
clarify the responsibilities and authorities of each business and 
individual. From this year, we have focused on developing “self-
disciplined creative human resources” who aim to improve 
performance by disciplining oneself and demonstrating creativity. 
To incentivize this, we set up a remuneration system aligned to 
the roles and achievements of the management class.
It is also important to create an organization where diverse 
talent can play active roles without any constraint. From that 
point of view, we need to go beyond purely numerical results. 
We need to add another dimension to our evaluation. For 
example, employees may choose to work more efficiently and 
study a language in their spare time. Even if it does not link 
directly to the work at hand, it is worth including such efforts in 
our evaluation. If employees feel that the company values their 
work and is also investing in their growth, they will feel happy. 
They will improve their human qualities, which in turn is a benefit 
for the company. Improving employee engagement enhances 
corporate value. It is important to spread this idea throughout 
the organization, especially to the next generation of leaders and 
management candidates who will be in a position to lead the 
company in the future.
For leader development, we have the HAGI Program, a next-
generation managerial human resource development program 
that I have been working on for many years. We also have the 
Nittoku Business School, which selects human resources from 
the sectional manager class who are almost qualified to 
participate in the HAGI Program, as well as the Raise UP 
Program, for the appointment of female managers. Step by step, 
our young leaders have developed. I look forward to watching 
them grow in the future.
create new things. We must also actively promote collaboration 
beyond the barriers of organizations. Rather than conducting 
business based on conventional competition, we must take on 
the challenge of solving social issues with a spirit of cocreation. 
That approach is one of the ways that companies grow.
From that point of view, we should also consider the decline in 
in-person communication stemming from the digitalization that 
has advanced during the COVID-19 pandemic. Online meetings 
have without question become the norm. They are highly efficient 
as they are excellent as a place for reporting and resolving 
agendas. Meanwhile, they are difficult to function as a forum for 
free discussion from which new concepts and ideas emerge. 
While DX (digital transformation) is an urgent challenge for 
companies, I believe that a phase has arrived where we need to 
validate once again the merits of in-person communication and 
use it effectively in combination with digital communication.
In the past, leadership has always needed to follow a top-
down, strong leadership style. When it is difficult to see the 
correct answer, we actively involve external human resources, 
foreign nationals, or women into the management team in order 
to complement each other’s strong areas and weak areas. In 
addition to the recruitment of diverse human resources, which is 
already underway, it will be important to bring more diversity into 
our management system.
Although leadership styles may be diverse, I believe that there 
are common and essential qualities to become professional 
leaders. I constantly communicate the following two things to 
our young leadership candidates, in a way to also remind myself.
The first is, “Always have the courage to change.” Of course, 
there is no guarantee that change will improve a situation. In that 
sense, we need to be prepared and courageous, not in a 
halfhearted way. If after making a change, we choose to go back 
to the original, do we have a firm belief that the original way is 
the best for realizing our dreams and ideals? In our judgement 
criteria, we need an “axis that does not shake.”
Another important point that relates to this is that it is 
important to “follow through on what you decide to do.” Whether 
you fail or succeed, do everything you can to follow through and 
deliver results. We will learn from the results and carry them 
forward. When you cannot see the right answer, it is important to 
repeat the effort by trial and error, step by step. That is why we 
need to train our people not to be afraid of becoming the 
proverbial “nail that sticks out.” We need people who can have 
breakthrough ideas, so it is important to create the right 
conditions to nurture them.
In order to take on challenges for new fields and work to 
enhance corporate value, we must nurture and strengthen the 
human capital that serves as the source of such efforts.
Unfortunately, Japanese companies as a whole currently have 
the lowest human investment per capita compared to other 
advanced countries. Investing in developing human resources is 
more important than ever. In the past, labor was seen as a cost. 
Growth was to be achieved by reducing costs through efficiency. 
We must move away from such management style. We must 
We are now in the position of evolving current businesses while 
fulfilling our obligation to supply products for internal combustion 
engines. At the same time, we will develop new businesses. 
Practicing what is known in management theory as 
ambidextrous management can involve some difficult steering. 
However, we will look for an exit for the ICE business while this 
current business is performing well. As we do so, we will 
increase the proportion of the non-ICE business and shift our 
business portfolio. We consider it as our important mission to 
find a balance between these two wheels if we are to bring 
about a society where we can coexist with all stakeholders.
As we have strengthened the development of human 
resources, our self-disciplined creative human resources are 
gradually developing. We now have a situation where they can 
think, make judgments, and act on their own. We also had some 
small success stories in new businesses we developed by 
advancing initiatives on four themes: Environment & Energy, 
instead invest for the future with a long-term view, in line with the 
national commitment of human capital investment as a growth 
strategy under the “new capitalism.”
The COVID-19 pandemic dramatically changed how people 
and companies interact, as well as values for working. We need 
to shift from the old approach, where people basically joined a 
company for life, to a job-based system in which job content, 
scope, and responsibilities are clearly defined and people are 
evaluated based on their achievements.
Medical, Communication, and Mobility. I look forward to seeing 
this younger generation achieve major successes. Their energy 
will drive further progress for our business going forward.
We have grown together with the automobile industry, as a 
leading company in the field of internal combustion engine 
products thanks to the support of all our stakeholders. We are in 
a time of great change in the surrounding environment and in 
people’s values. What should be the purpose (reason for 
existence) of the NGK SPARK PLUG Group going forward? We 
have the shared value (axis) that we have developed so far, the 
Nittoku Way. We will keep that as we work to solve social issues 
with a strong commitment of each of our employees. Through 
this process, we will establish a purpose that is unique to our 
company.
I would appreciate your understanding toward the challenges 
of the NGK SPARK PLUG Group along with your continuing 
support.
Having the courage to change, and the importance of following through
Establishing a unique purpose
It is important to have the courage to 
change. It is also important that, whether 
you fail or succeed, once you decide to 
do something, you follow through. 
NGK SPARK PLUG CO., LTD. Integrated Report 2022
06
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

History of Value Creation
Timeline from Morimura Gumi to 
NGK SPARK PLUG
The origin of the Morimura Group, the foremost ceramics conglomerate 
in Japan, dates back to 1876, when the Morimura brothers, Ichizaemon 
and Toyo, founded Morimura Gumi*1 to launch a pioneering foreign trade 
business in the country.
The Group’s involvement in the ceramics industry began in 1904, 
when the founders of Morimura Gumi formed Nippon Toki Gomei 
Kaisha*2, from which the sanitary ware division and insulator division 
were subsequently spun off into Toyo Toki Co., Ltd.*3 (1917) and NGK 
Insulators, Ltd.*4 (1919), respectively. Okura Art China*5 was also 
established in 1919.
After that, in October 1936, the spark plug division of NGK Insulators, 
Ltd. was spun off, and NGK SPARK PLUG was established, forming the 
foundation of the Morimura Group today.
Ichizaemon Morimura (right side) and Toyo in 1889
Notes: 1.Currently, Morimura Bros., Inc.;
2. Later, Nippon Toki, Ltd., and currently, Noritake Co., Limited;
3. Currently, TOTO Ltd.;
4. Currently, NGK Insulators, Ltd.
5. Currently, Okura Art China. Inc.
Merged with 
Mitsubishi Bank
(1929)
Okura Art 
China. Inc.
(Reorganized in April 1950)
Morimura Bros., 
Inc.
(Renamed in July 1946)
Morimura Gumi
(March 1876)
Noritake 
Co., Limited
(Renamed in April 1981)
Morimura Bank
(June 1897)
Okura Art China
(May 1919)
Morimura Gumi 
Co., Ltd.
(April 1918)
Toyo Toki 
Co., Ltd.
(May 1917)
Nippon Toki, 
Ltd.
(July 1917)
NGK SPARK PLUG 
CO., LTD.
(October 1936)
NGK Insulators, 
Ltd.
(May 1919)
Nippon Toki
Gomei Kaisha
(January 1904)
NGK Insulators, 
Ltd.
(Written name changed in May 1986)
TOTO 
Ltd.
(Renamed in May 2007)
Ichizaemon Morimura in 1863
Nippon Toki Gomei Kaisha in 1904
In New York,
Morimura Brothers Broadway 539, around 1893
Morimura Brothers established. Identified potential in porcelain exports.
1881
Nippon Toki Gomei Kaisha established.
1904
1917
Nippon Toki converted into a joint stock company (Nippon Toki, Ltd.); 
its sanitary ware division spun-off into Toyo Toki Co., Ltd.
1897
Morimura Bank established (merged with Mitsubishi Bank in 1929).
1876
Ichizaemon Morimura VI and his brother Toyo founded Morimura Gumi 
in Tokyo, with Toyo starting an imported variety business in the US 
NGK Insulators started research on 
manufacturing of spark plugs.
1921
1930
NGK Insulators put spark 
plugs on the market.
1919
Nippon Toki’s insulator division spun off into NGK 
Insulators, Ltd.; Okura Art China established
1876
1910
Morimura Group’s 
Background
NGK SPARK PLUG CO., LTD. Integrated Report 2022
07
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Our History of Challenges
History of Value Creation
Magoemon Ezoe, first president
Electrostatic chucks
Solid Oxide Fuel Cell 
(SOFC)
Hydrogen Leak 
Detection Sensor
Medical-use oxygen 
concentrator
Cutting tools
IC packages
Temperature sensors for 
automobiles
Oxygen sensors for 
automobiles
CERAMICA E VELAS DE IGNICAO 
NGK DO BRASIL LTDA
Domestic automobile industry depending on imports
Automobile production growing rapidly
Startup period (from 1930)
Growth period (from 1940)
Establishment period (from 1960)
Development period (from 1990)
From present to future
Impact of high economic growth
Tackling new social challenges
In Japan in the 1920s, when the domestic automobile 
industry was still in its infancy, the supply of automobiles 
was limited almost entirely to imports from the U.S. and 
Europe, and automotive parts, including spark plugs, 
were also imported. The first president, Magoemon Ezoe, 
decided to produce plugs using ceramics, a specialty 
product of Japan, and led initiatives to launch domestic 
plug manufacturing.
In the 1940s, domestic automobile production rose to 
46,000 cars, as automobiles and related parts 
manufacturing developed into a major industry. 
Accordingly, demand for plugs also increased. After 
WWII, Japan ushered in a period of high economic 
growth in the late 1950s, when the country was rapidly 
becoming motorized.
From the late 1960s, pollution problems were emerging 
as a negative effect of the high economic growth, and the 
automobile industry was particularly called on to urgently 
address air pollution problems. Looking to fulfill needs 
related to such problems as well as resource 
conservation, we started research to develop new 
products that would help meet exhaust gas regulations. 
These regulations were made more stringent year by 
year, pushing up demand for high-performance plugs 
and sensors.
From the 1990s, automakers began to focus on the 
development of electric vehicles, hybrid vehicles and fuel 
cell vehicles, as part of efforts to address environmental 
and energy issues. Those years also saw the explosive 
growth of information communication technologies 
bringing about significant changes in many people’s 
lifestyle. In order to provide products that would meet 
new needs related to these societal trends, we promoted 
research and development based on our technologies 
built over long years.
Our business environment is undergoing an enormous 
change brought about by a number of factors, such as AI 
and IoT-driven digitization, the once-in-a-century 
transformation of the automobile industry led by the 
concepts of CASE and MaaS, and mounting concerns 
over climate change and ESG-related issues. Recognizing 
this situation, we are striving to reduce our dependence 
on the production of automotive components for internal 
combustion engines, which account for 80% of our net 
sales, while creating new business projects aimed at 
achieving a sustainable society.
Aiming to create a sustainable society
1936
NGK SPARK PLUG was established through the spin-off of 
the spark plug division of NGK Insulators. The founding 
business of producing spark plugs has grown to make the 
company the world’s top manufacturer of the product.
NGK SPARK PLUG founded
1937
In 1930, we released NG Spark Plugs, Japan’s first 
domestically produced spark plug, and began producing 
NGK Spark Plugs in 1937.
Production of NGK Spark Plugs started
1959
Japan entered the high economic growth period, boosting 
exports. Driven by this trend, we established our first overseas 
base in Brazil, CERAMICA E VELAS DE IGNICAO NGK DO 
BRASIL LTDA, in 1959, and began to promote overseas 
advancement ahead of competitors to build strong global 
networks. 
Overseas business expansion
1949
After the post-war confusion had settled down and spark 
plug production was stabilized, we began applying ceramics 
to develop new technologies and products for the 
diversification of our business. The new segment 
development was promoted under the brand name of NTK. 
Following this, we gradually broadened our ceramic product 
range to include those for industrial and environmental uses.
Production of NTK Technical Ceramics started
1999
We started research on the possibility of medical 
applications of bioceramics in the 1970s, looking to future 
opportunities afforded by the progress of population aging. 
Related results included the rollout of the bone prosthesis 
Ceratite in 1990 and oxygen concentrators for medical use 
in 1999.
Sales of medical oxygen concentrators started
2000
Under the NITTOKU SHINKARON long-term management 
plan started in FY2010, we accelerated efforts to establish 
new business pillars. The 2030 Long-term Management Plan 
“NITTOKU BX” also started in FY2020, aiming to transform 
our business portfolio by 2040. We continue with these 
challenging efforts, seeking out every possible new field by 
applying our core ceramics technologies including hydrogen 
leak detection sensors and the solid oxide fuel cell (SOFC).
Building new business pillars
Revenue trend
Historical 
background and 
social issues
Our 
History of 
Challenges
Automotive Components
Ceramics
New Businesses
1958
The importance of ceramic industrial tools increased, 
particularly in relation to electricity, automobiles, chemical 
engineering and machinery, and we developed ceramic cutting 
tools for cutting hard materials to be put on sale in 1958.
Ceramic cutting tools developed
Ceramics
Ceramics
1967
In the late 1960s, the silicon semiconductor integrated circuit 
(IC) became a mainstream standard and its mass production 
began in Japan and the US. Following this trend, we started 
manufacturing ceramic substrates and IC packages by 
applying our ceramics technologies.
Production of ceramic substrates and IC packages started
Automotive Components
1982
In Japan in the 1960s, as the full-scale motorization of society 
progressed, environmental degradation such as air pollution 
became a social issue. In response, exhaust gas regulations 
were made stricter. To help related industries ensure 
regulatory compliance, we began developing various sensors, 
primarily in association with exhaust gas, such as zirconia 
oxygen sensors and wide range oxygen sensors.
Production of oxygen sensors for automobiles started
1989
In the late 1980s, requirements for higher integration and 
lower cost of semiconductor elements intensified, which 
gave rise to a shift to ceramic components, characterized 
by the material’s excellent heat and abrasion resistance, to 
be used for semiconductor production equipment. In 
response, we promptly introduced ceramic electrostatic 
chucks, and commenced mass production of the product in 
the 2000s to expand sales.
Sales of electrostatic chucks started
Ceramics
New Businesses
NGK Spark Plug
NGK SPARK PLUG CO., LTD. Integrated Report 2022
08
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Business Overview and Business Model
The 80-year history of NGK SPARK PLUG started with the production of plugs. Then, applying its core ceramics technologies, we developed a 
number of businesses, and are currently accelerating business development in the Ceramics and the New Businesses to transform the 
business portfolio, while maintaining high profitability in the core Automotive Components.
Composition of 
net sales by segment in 
FY2021
Composition of 
net sales by region in 
FY2021
Business segments
Main businesses
Customers
End-users
Value offered
Plugs
Sensors
SOFC cell stacks
Higher fuel economy
Cleaner exhaust gas
Contribution to a convenient mobile 
society
Distributed power sources
BCP preparedness
Contribution to a decarbonized society
Automotive Components
Ceramics
New Businesses (SOFC)
Automobile and motorcycle 
manufacturers
General purpose engine 
manufacturers
Components distributors
Automobile and motorcycle 
users
General purpose engine 
users
Automobile industry
SPE
Semiconductor packages
Medical 
(oxygen concentrators)
Cutting tools
Semiconductor production 
equipment manufacturers
Automotive and aircraft 
components manufacturers
Tool distributors
Semiconductor manufacturers
Semiconductor inspection 
components manufacturers
Assembly manufacturers
Rental operators
Semiconductor industry
Communication industry
Automobile industry
Metal components 
processing users
Electronic device industry
Automobile industry
Home patients
Medical institutions
Enhanced performance of 
semiconductors
Contribution to a digital society
Reduction of manufacturing lead time
Achievement of precision components 
machining
Higher performance of electronic 
devices
Improvement of symptoms
Higher quality of life
Machine manufacturers
Power generation business 
operators
Plants
Data centers
Public facilities
Retail facilities
Households, etc.
25%
79%
19%
2%
17%
North 
America
24%
Europe
25%
Asia
Automotive 
Components
Ceramics
New Businesses 
and Others
Japan
6%
Central 
and 
South 
America 4%
Others
NGK SPARK PLUG CO., LTD. Integrated Report 2022
09
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Financial Highlights
Non-financial Highlights
Earnings per share increased year on year due to an increase in the profit 
attributable to owners of the parent.
The basic policy of the dividend payout ratio is 40% as stated in the 
Medium-term Management Plan. In addition, the dividend amount is 
linked to the profit attributable to owners of the parent, excluding 
temporary gains and losses, which are generated separately from ordinary 
business activities. As a result, the full-year cash dividend increased by 42 
yen year on year to 102 yen per share in FY2021.
We are promoting the diversity of management personnel, including 
women. As a priority issue, we have set a target of increasing the 
percentage of women, foreign nationals and mid-career employees in 
managerial posts to 25%.
204.74
209.37
Earnings per share
60.00
240.00
180.00
120.00
0
300.00
(Yen)
163.06
188.59
296.04
2019
2020
2018
2017
2021 (Fiscal year)
J-GAAP
IFRS
60
Cash dividends per share
Dividend payout ratio
28.7
60
30
90
10
30
20
70
34.2
0
0
(%)
50
40
Cash dividends per share/Dividend payout ratio
150
120
(Yen)
70
42.9
60
31.8
102
34.5
(Fiscal year)
2019
2020
2018
2017
2021
J-GAAP
IFRS
Percentage of female/foreign-national/mid-career 
employees in managerial posts (non-consolidated)
0
(Fiscal year)
(Number of employee)
(%)
100
200
300
400
Number of female/foreign-national/mid-career employees in managerial posts
Percentage of female/foreign-national/mid-career employees in managerial posts
0
5
10
15
20
13.6
12.5
11.7
133
14.5
146
17.0
137
123
113
2019
2020
2018
2017
2021
Number of employees who took childcare leave; 
percentage of employees who returned to work 
after taking childcare leave (non-consolidated)
(Fiscal year)
(Number of employee)
(%)
25
50
75
100
0
20
40
60
80
100
58
50
48
95
100
96
49
94
59
94
2019
2020
2018
2017
2021
Number of employees who took childcare leave
Percentage of employees who returned to work after taking childcare leave
0
A total of about 50 employees, male and female employees combined, 
take childcare leave every year. The return-to-work rate has remained 
consistently high over the years.
Depreciation
Capital expenditures
20,000
40,000
37,591
0
Capital expenditures/depreciation
60,000
(Millions of yen)
(Fiscal year)
2019
2020
2018
2017
2021
23,979
56,587
31,952
34,700
51,004
33,444
37,940
29,589
20,920
J-GAAP
IFRS
28,072
25,283
R&D expenses
10,000
0
30,000
20,000
(Millions of yen)
28,315
26,115
23,685
(Fiscal year)
2019
2020
2018
2017
2021
J-GAAP
IFRS
Our ratio of R&D expenses to sales has been in the range of 5% to 6%. It 
reached 4.8% in FY2021.
Number of paid-leave days used (non-consolidated)
0
(Fiscal year)
(Number of days)
(%)
10
20
30
0
20
40
60
80
100
16.6
15.4
84.4
16.7
85.6
14.0
71.2
78.5
Number of paid-leave days used
Rate of paid-leave days used
*Fiscal year starts October.
2019
2018
2017
2020
The management and labor cooperate in encouraging the use of paid 
leave, and the number of paid-leave days used has increased year by 
year. However, the number of paid-leave days used in FY2020 (October 
2020 to September 2021) fell mainly due to the impact of suspension of 
business caused by the COVID-19 pandemic.
Number of reports from whistleblowers
Number of reports from whistleblowers
0
(Fiscal year)
(Number of reports)
20
40
60
80
100
80
63
41
73
65
2019
2020
2018
2017
2021
Regarding the Corporate Ethics Helpline, an internal reporting system, we 
are creating an environment where employees feel comfortable in 
consulting and reporting, by promoting the system on an ongoing basis 
through holding seminars, creating posters and distributing pocket-size 
cards.
Automotive-related activities centered on improving the efficiency of 
production of existing equipment. We maintained the same level of capital 
expenditures. We will continue to invest in the non-ICE business for 
medium- and long-term growth.
In the Automotive Components business, our revenue and profits 
increased year on year due to an increase in sales of aftermarket parts of 
spark plugs and the expansion of scale of the Ceramics business, despite 
an impact of the shortage of semiconductors.
ROE increased by 3.4% year on year due to an increase in the profit 
attributable to owners of the parent.
Since FY2021, the intellectual property department and internal 
companies are working together to build the appropriate profile of patent 
holdings toward the transformation of our business portfolio.
100,000
200,000
300,000
Revenue
Operating income
Operating income ratio
(%)
0
10
20
30
0
409,912
2019
2020
2018
2017
2021
Revenue/Operating income/Operating income ratio
500,000
400,000
(Millions of yen)
(Fiscal year)
67,279
425,013
16.4
13.7
426,073
48,447
11.4
427,546
47,389
75,512
11.1
58,385
15.4
491,733
J-GAAP
IFRS
44,335
12.0
0
42,638
10.9
33,698
38,367
8.4
9.1
12.5
Proﬁt/return on equity (ROE) 
attributable to owners of the parent
(%)
0
15
10
5
100,000
75,000
50,000
25,000
(Millions of yen)
Proﬁt attributable to owners of the parent
ROE attributable to owners of the parent
2019
2020
2018
2017
2021 (Fiscal year)
60,200
J-GAAP
IFRS
Number of patents held
6,303
3,286
3,017
6,482
3,298
3,184
6,478
3,344
3,134
2,000
4,000
In Japan
Outside Japan
0
8,000
6,000
(Number of patents)
6,773
3,447
3,326
2019
2020
2018
2017
2021 (Fiscal year)
6,255
3,228
3,027
0
(%)
0
10
20
30
40
50
15,994
16,430
16,391
16,145
15,322
44.9
45.7
45.3
43.2
40.6
Number of employees at work/percentage of overseas employees
5,000
10,000
15,000
20,000
25,000
(Number of employee)
(Fiscal year)
Total number of employees
Percentage of overseas employees
2019
2020
2018
2017
2021
Against the background of M&As in and outside Japan, etc., the 
consolidated number of employees tended to increase.
64.3
62.5
63.4
59.7
58.2
20
80
60
40
0
Equity ratio attributable to owners of the parent
100
(%)
2019
2020
2018
2017
2021 (Fiscal year)
J-GAAP
IFRS
10.0
8.2
6.3
5.5
7.9
Return on invested capital (ROIC) ROIC: Operating income after tax/Invested capital
8
4
0
12
(%)
2019
2020
2018
2017
2021 (Fiscal year)
J-GAAP
IFRS
Equity ratio attributable to owners of the parent increased year on year 
due to the partial repayment in FY2021 of bank borrowings, which were 
taken out in FY2020 to secure liquidity on hand following the spread of 
COVID-19.
ROIC was 7.9% for FY2021 due to an increase in profits driven by an 
increase in sales of spark plugs for aftermarket parts in the Automotive 
Components business and SPE products in the Ceramics business, 
although inventories were built up due to logistics disruptions.
Sales percentage of precious metal plugs and 
wide range oxygen sensors
0
(Fiscal year)
(%)
10
20
30
40
50
22
39
27
34
41
37
40
37
39
37
2019
2020
2018
2017
2021
Precious metal plugs
Wide range oxygen sensors
As a priority issue, we aim to increase the sales percentage of precious 
metal plugs and wide range oxygen sensors, which are part of our 
environmentally friendly products “Nittoku Green Products,” to 50% or more.
CO2 emissions
CO2 emissions
0
(Fiscal year)
(10,000 tons)
5
10
15
20
25
30
35
2019
2020
2018
2017
2021
25.67
26.51
27.58
29.09
28.46
CO2 emissions as a cause of climate change has been on a declining 
trend due to our CO2 reduction efforts and a decline in the CO2 emissions 
conversion factor of electric power. As a priority issue to tackle, we aim at 
reducing CO2 emissions by 30% by FY2030 from the FY2018 level.
* Calculated based on the CO2 emissions conversion factors of respective fiscal years.
Changes in Financial and Non-financial Position
NGK SPARK PLUG CO., LTD. Integrated Report 2022
10
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

2
Page 11 
Strategies for 
Value Creation
C O N T E N T S
12 
Message from the President
14 
Value Creation Process
15 
Priority Issues (Materiality)
17 
Examples of Materiality Initiatives (1)
18 
Examples of Materiality Initiatives (2)
Medium-term Growth Strategies
19 
Long-term Management Plan
21 
Medium-term Management Plan
23 
The Finance Officer Outlines the Financial Strategy
24 
Business Strategy
28 
 Progress of Creation of New Business Pillars and Future Prospects
30 
Intellectual Property
NGK SPARK PLUG CO., LTD. Integrated Report 2022
11

Message from the President
We have completed the first year of our Medium-term Management Plan, which began in April 2021. Under the 
slogan, “Break to change. Change to create,” what changes have we carried out toward the transformation of our 
business portfolio? Representative Director, President Takeshi Kawai talks about the new challenges that have 
emerged as we move forward.
Over its history of more than 80 years, NGK SPARK PLUG has 
grown against the backdrop of 
economic development in Japan 
and overseas by improving and 
advancing its products used in 
internal combustion engines 
(ICEs), such as spark plugs and 
sensors. However, technological 
innovations such as electric 
vehicles (EVs) are rapidly 
progressing in the automobile 
industry amid accelerating efforts 
around the world to achieve 
carbon neutrality (decarbonized 
society) by 2050. The automobile 
industry is hurtling into an era in 
which we will need to embrace 
challenges that surpass 
conventional commonsense and 
imagination.
In the face of these changes in 
the business environment, we 
have been working hard to further 
strengthen our current businesses, 
create new businesses, and 
strengthen our business infrastructure. In addition, in 2020, we 
formulated the 2030 Long-term Management Plan “NITTOKU 
BX,” the primary thrust of which is the transformation of our 
business portfolio. We are working to transform our business 
portfolio based on a scenario where products for internal 
In FY2021, the Company recorded record-high revenue of 491.7 
billion yen and operating income of 75.5 billion yen. There were 
three main reasons for this. The first is that spark plug 
aftermarket parts boosted sales. Due to the semiconductor 
shortage, automobile production slowed down, and sales of 
products for new automobiles fell. Meanwhile, the market for 
used cars was revitalized. Sales of profitable aftermarket parts 
were strong, and the weakening of the yen gave us a further 
tailwind.
Second, overseas transportation costs, energy prices, and the 
prices of precious metals used as raw materials for high-
combustion engines peak in the mid-2030s. By 2030, we aim 
for the ICE business, which had accounted for 80% of revenue, 
to account for 60%, and the non-ICE business to account for 
40%.
We have further broken down NITTOKU BX to form our 
Medium-term Management Plan, which began in April 2021. The 
slogan is “Break to change. Change to create.” Under our policy 
of Dokuritsu-Jiei, we have also embarked on a transformation of 
our organizational structure, starting with the introduction of an 
in-house company system. Changing a conventional approach 
significantly in a challenging market environment will involve 
some pain. However, in order to achieve sustainable growth for 
both society and the Company, we must carry out our vision to 
“Change drastically beyond the current way.”
In addition to the need for responding to the sustainability of 
society, FY2021 brought various challenges, such as the 
lingering threat of the COVID-19 pandemic since the previous 
fiscal year and ongoing semiconductor shortages and soaring 
materials prices. From the end of the fiscal year, the world was 
also exposed to a severe energy crisis caused by Russia’s 
invasion of Ukraine. We need to closely monitor risk factors such 
as rising raw materials prices, transportation costs, and energy 
prices due to the Russia-Ukraine situation, as well as the impact 
of these factors on the global shift to EVs.
Meanwhile, as we work toward transformation, each of our 
business companies was able to respond with a sense of speed 
to unexpected crises such as soaring raw materials prices. We 
consider this experience as a pathway to transforming our 
business model in the future.
performance plugs all soared. In response, we moved fast to 
negotiate raw materials prices and pass on the increased costs 
to selling prices. The in-house company system that we 
introduced in the previous year enabled us to better adapt to 
changes in the market environment as a role of each business 
company.
Third, we also made steady progress in revenue and operating 
income of the non-ICE business. By leveraging the core 
ceramics technology, products for semiconductor production 
equipment positioned in the growth business boosted sales and 
contributed to revenue. In terms of new businesses, the solid 
The importance of constantly sharing the sense of crisis across the entire company
In-house company system improves our ability to adapt to changes
Without change, there is 
no growth. Without risk, 
there is no opportunity.
We will be constantly on the 
lookout for “Something New,” 
as we strive to contribute to 
the sustainability of society
Representative Director President   Chief Operating Officer
NGK SPARK PLUG CO., LTD. Integrated Report 2022
12
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Message from the President
oxide fuel cell (SOFC) business began mass production in 
FY2020. We are building a structure that can generate profits for 
the non-ICE business as a whole.
Based on these results, our FY2022 full-year plan forecasts 
revenue of 570.5 billion yen (up 16% year on year) and operating 
income of 96.0 billion yen (up 27.1% year on year). In the 
Automotive Components, we expect that sales of products for 
new automobiles will grow as the semiconductor market 
recovers. In terms of growth businesses, in addition to strong 
sales of products for semiconductor production equipment, we 
expect growth in areas such as the respiratory business in the 
medical field as issues such as component shortages and 
transportation network problems are resolved.
In terms of risk factors, precious metal prices, energy prices, 
and transportation costs all continue to rise mainly due to the 
headquarters must take a long-term view in its judgments. We 
must closely work together to strengthen governance while 
striking a balance between the long term and the short term.
In April 2022, we launched a new personnel system that ties 
into the performance of each internal company. It sets desired 
skills, rewards, etc. based on the role, difficulty, etc. Regardless 
of the position or career, for example, we have set a wide range 
of salaries, even for the same position. In this way, those who 
have worked hard will earn greater rewards.
impact of the Russia-Ukraine situation. We also need to keep a 
close watch on the possibility that the recovery of automotive 
semiconductors could take longer than expected. However, we 
assume that the direct impact on sales in the Russian market will 
be minor. In FY2021, we achieved a total annual price increase 
of 4.5 billion yen for products for new automobiles and the 
aftermarket as a response to soaring raw material prices. We will 
continue negotiations in FY2022, targeting an annual price 
increase of 5.1 billion yen. We are also working to streamline 
design changes for precious metal plugs used in the aftermarket 
and building a business structure that, even at manufacturing 
sites, is resilient to the impact of raw material prices.
For annual dividends, we plan to increase the dividends by 36 
yen from the previous year to 138 yen per share, based on the 
policy of a dividend payout ratio of 40%.
Our goal is to change the distribution of capital and improve 
employee engagement so that those who work hard will be 
rewarded. If anyone feels that their evaluation is lower than 
expected, I ask them to share their thoughts and ideas with their 
managers and departments at headquarters. In order to 
transform the Company, to change drastically beyond the 
current way, we need to foster a corporate culture that 
deliberates on matters thoroughly without fear of confrontation.
We have completed the first year of our Medium-term 
Management Plan, which began in April 2021. Under the plan, 
we have been working to take on challenges beyond the current 
way and drive transformations. Although the business 
environment has changed more than expected, we have 
produced positive results, while also identifying areas to improve.
In terms of business, as mentioned above, the growth 
business, including the semiconductor production equipment 
business, has become one of our pillars of revenue. In new 
businesses, we are also moving forward with mass production in 
the fuel cell business. We are making steady progress toward 
our goal of transforming our business portfolio. Going forward, 
we face the question of how we can continuously shape the next 
set of new businesses to help resolve social issues. We must 
move toward a phase in which each of the separate business 
that we have set up links with other surrounding businesses and 
collaborates. This will expand our business from point to surface, 
thereby contributing to society more broadly.
For example, marine pollution has caused the social issue of 
smaller catches and food shortages. In response to this, we 
have used sensing technology to create a water quality sensing 
system for land-based aquaculture businesses. By expanding 
this business with a focus on water quality management, we 
expect to broaden its scope of use beyond the industrial sector 
To transform our business infrastructure to align with the 
Medium-term Management Plan, we have put in place an in-
house company system that clarifies responsibilities and 
authorities. This has helped us to respond to changes in the 
business environment.
Alongside the development of society, we have established our 
value of existence with a focus on products for internal 
combustion engines and built relationships of trust with our 
stakeholders. In this era of dramatic changes in society and in 
values, if we are to grow sustainably, it is indispensable to remain 
committed to contributing to the sustainability of society. For this 
reason, in addition to creating new businesses, we have 
responded to new trends such as the shift to EVs. While meeting 
the supply needs of products for internal combustion engines, 
we have also created a large number of environmentally friendly 
products.
To reflect this situation, we decided to change the English 
name of the Company from NGK SPARK PLUG to Niterra. This 
is part of our way of showing our future path and our 
commitment to work toward our goals. “Niterra” is a coined 
to aquariums and household aquariums. In addition, at the end 
of November 2021, we launched Doctor Link, a preventive 
maintenance service for automobile maintenance shops that 
utilizes our sales network and connected technology. Using data 
on automobile usage and maintenance history of connected 
vehicles, the service proposes the optimal timing and content of 
maintenance to automobile maintenance shops. Going forward, 
we plan to expand this business as a data service, in 
collaboration with the insurance and non-life insurance 
industries.
However, as we pursue new businesses, we should not just 
take on anything at all. We must be able to say why we need to 
do that business. We must start by asking the question, “Why 
NITTOKU?” The business might be one that draws from our 
strengths. Or it might give us a way to collaborate with external 
companies so that we can add missing pieces to our core 
assets.
In terms of the question of what business we should do, we 
must invest not only in new businesses but also in the 
Automotive Components Business. While we meet the obligation 
to supply aftermarket parts for internal combustion engines, we 
will also collaborate and invest in equipment as necessary in the 
Automotive Components Group.
While we are better able to adapt to change, and to do so 
faster, certain challenges have come to light. Among these is a 
tendency at each internal company to shortsightedly focus on 
boosting numbers so that they can meet their KPIs or KGIs. To 
correct this situation, the strategic department at the 
word that combines the Latin terms “Niteo,” which means to 
shine, and “terra,” which means the planet earth. It conveys our 
determination to be a company that lets the earth shine.
Regardless of the era, our company’s history has been a 
series of challenges and transformations. We need to return to 
that DNA. Although new challenges always bring risks, you 
cannot create opportunities without taking some risks. Each of 
our employees needs to have a strong awareness of that. Under 
the company-wide concept of “Change (transformation) with 
(co-existence) Will (will)!!,” which is set forth in the Action 
Guidelines, we will work to solve social issues while remaining 
aware of our new mindset of “Something New.” I would like to 
thank all of our stakeholders for your continued support and 
guidance.
From point to surface. We will target growth from one small business seed
Those who work hard will be rewarded. Launch of new personnel system
A company that lets the earth shine. Showing our commitment to the world
Regardless of the era, we return to 
our company’s DNA, which we have 
carried through a history of challenges 
and transformations. 
NGK SPARK PLUG CO., LTD. Integrated Report 2022
13
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Value Creation Process
Value offered
 Cleaner automotive exhaust gas
 Higher fuel economy
  Reduction of environmental 
pollutants
  Reduction of energy consumption 
in manufacturing
  Using sensing technology to 
improve industrial efficiency
  Stable supply of renewable 
energy
E n v i r o n m e n t  &  E n e r g y
 Safety in automobile driving
  Providing maintenance services 
according to your lifestyle
M o b i l i t y
 Higher QOL
 Safety in surgical operations
M e d i c a l
Action against Priority Issues
Corporate Governance
2030 Long-term Management Plan 
“NITTOKU BX”
The Nittoku Way
Shisei-Shinjitsu
Dokuritsu-Jiei
Shikai-Keitei
Soshi-Kantetsu
 Global environmental issues
 International issues
  Establishment of a society 
where economic development 
and resolution of social issues 
are compatible
External environment
P r i o r i t y  i s s u e s
(Materiality)
E  (Environment)
 Responding to climate change
  Providing environmentally friendly 
products
G  (Governance)
  Corporate governance
  Risk management
  Compliance
  Information security
Medium-term 
Management Plan 
(five years)
Seventh 
Medium-term 
Management Plan
Medium-term 
Management Plan 
(four years)
  Higher performance of electronic 
devices
C o m m u n i c a t i o n
Our 2040 Vision is to “change drastically beyond the current way.”
In the past, as we thought about “What ceramics can do,” we made our journey as a manufacturing corporation.
The world has changed. There are technological innovations such as the electrification of automobiles and higher demand for semiconductors. We must face challenges such 
as climate change. To help bring about a better society, we must not limit ourselves to thinking about “What ceramics can do.” We must meet the challenge of going “beyond 
ceramics” and “exceeding the imagination” of society and ourselves.
“Beyond ceramics, eXceeding imagination” is our 2040 Vision, and we will create a new NGK SPARK PLUG Group.
M a n a g e r i a l  c a p i t a l
FY2021
Financial capital
Cash flows from 
operating activities71,910  million yen
Capital adequacy ratio:
 62.5 %
Rating:
  A+ (R&I)   AA- (JCR) 
Intellectual capital
R&D expenses: 23,685  million yen
Number of patents:
6,255
Natural capital
Electricity:
485,250  MWh
Input of water 
resources:
1,650,000  m
3
Input of raw materials: 56,000  tons
Human capital
Consolidated 
number of employees:
16,145
Social capital
Number of countries 
where our products are sold: about 140
Manufacturing capital
bases 
in Japan
37
bases 
outside Japan
47
Environment & 
Energy
Mobility
Communication
Medical
Core 
Competence
  Ceramic material 
technology
  Application technology 
in harsh environments
  Disparate material 
bonding technology
 Sensing technology
  Rapid high-temperature 
heating technology
  Global production and 
sales system
Business infrastructure
P.31: Foundation for Value Creation
Business Model
Business Fields
P.21: Medium-term Management Plan, P.24: Business Strategy
Management Strategies
P.20: 2030 Long-term Management Plan “NITTOKU BX,” P.21: Medium-term Management Plan
Response to social issues
2040 Vision
   Change drastically beyond the current way
P.15: Priority Issues
(Materiality)
P.15: Priority Issues
(Materiality)
⇒
S  (Society)
  Global human resources 
management
  Development of technologies, 
products, and businesses for 
contributing to the resolution of 
social issues
Enforcement of Managerial Capital
NGK SPARK PLUG CO., LTD. Integrated Report 2022
14
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Priority Issues (Materiality)
Steps to define priority issues
Identify social requirements (issues) in reference to the 
United Nations Global Compact, SDGs, ISO 26000, GRI 
Standards, ESG surveys, industry guidelines and other 
companies’ benchmarks.
Identify issues
STEP 1
STEP 2
Conduct materiality assessment for stakeholders in 
reference to international guidelines and ESG surveys 
used in Step 1, and for our company in consideration of 
past activities and future management plans, and create 
an assessment results map.
Analyze and prioritize issues
Importance to our company
Importance to stakeholders
Priority
issues
High
Medium
High
STEP 3
Using the map made in Step 2, select higher materiality 
items as priority issues, with approval by the CSR and 
Sustainability Committee, which includes outside 
directors as members.
Select priority issues
Social issues
Risks and opportunities related to businesses
International issues
 Protectionism
 Emerging economies
 Disparities in society
 Human rights
Establishment of a society 
where economic development 
and resolution of social issues 
are compatible
 Robots, automation, labor saving
 Artificial intelligence (AI)
 Sensing IoT
 Nanotechnology
 Biotechnology
  Aging society with a decreasing 
birthrate/Population explosion
 Diversity
 Pandemic
 Earthquakes
 Work-life balance
Global environmental issues
 Climate change
 Decarbonized society
 Environmental destruction
Environment
Society
Governance
We are committed to contributing to the realization of a sustainable society, thereby aiming to increase our corporate value. 
Amid the industrial environment around us marking a tipping point, we first need to accurately understand the risks which 
affect our sustainable growth as well as opportunities, and then define priority issues (materiality) to be addressed by the 
Group in reference to ESG (Environmental, Social, and Governance) factors and set appropriate goals from medium- to 
long-term perspectives.
Taking the above-stated steps, we have identified eight priority issues for each ESG area after taking risks and opportunities 
into consideration, and various initiatives aimed at realizing a sustainable society have been set in association with each 
issue. To implement these initiatives, progress will be monitored by the CSR and Sustainability Committee, and reviews will 
be conducted in response to the changes in the business environment, stakeholders’ expectations and activity conditions.
   Stricter environmental regulations
Opportunity
   Stricter regulations on hazardous chemicals
Risk
Opportunity
   Effective use of renewable energy
Opportunity
   Diversification of work styles and values
Risk
Opportunity
   Speedier business decisions
Opportunity
Opportunity
   Expanding demand for automobiles in emerging 
economies
Risk
   Measures for information security (cyberattacks)
Risk
   Change in people’s preferences regarding 
transportation means and consumption
Risk
   Respect for human rights
Risk
   Earthquakes and disasters caused by climate 
change
Risk
    Decline in the number of internal combustion engine 
vehicles
Risk
Opportunity
  Diversification of human resources
Risk
Opportunity
   Diversification of management personnel
Risk
   Reduction of greenhouse gas emissions
Opportunity
   Distributed power sources, and local production and 
consumption of energy
Opportunity
   Expansion of the sensing field
Opportunity
   Efficient use of CO2 for a decarbonized society
Risk
   Stable procurement of raw materials
Risk
   Implementation of compliance
Risk
   Geopolitical risks
Opportunity
Opportunity
NGK SPARK PLUG CO., LTD. Integrated Report 2022
15
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Priority Issues (Materiality)
Priority Issues
Reasons for Identification as Priority Issue
Major Initiatives
Goals and Outputs
Reference Page
Contribution to SDGs
Environment
Responding to climate change
  The impact of climate change, including the increased severity of natural disasters, 
hinders the sustainable development of society. For this reason, the world faces the 
common challenge of reducing CO2 and other greenhouse gas emissions that cause 
climate change, while aiming to realize a decarbonized society. The Group also 
recognizes that reducing CO2 emissions from business activities and supply chains is an 
important issue.
Reduction of CO2 emissions
  CO2 emissions: 30% reduction from the FY2018 level 
by FY2030
P.35
Providing environmentally friendly 
products
  The earth’s resources are limited. To preserve the earth’s limited resources for future 
generations, we must minimize the environmental impact of the products and services 
used by the current generation. The Group has a bird’s-eye view of the entire lifecycle, 
from when products and services are used to when they are disposed of. We will use 
that position to contribute to the sustainable development of society by providing 
products and services with lower environmental impact.
Dissemination and expansion of 
environmentally friendly products
  Sales ratio of precious metal plugs: at least 50%
  Sales ratio of wide range oxygen sensors: at least 50%
P.18
Society
Development of technologies, 
products, and businesses contributing 
to the resolution of social issues
  The Group is committed to taking on the challenges of the world. We will 
cocreate and provide new value to help solve these challenges, so that we can 
contribute to realizing a better society.
The world faces various challenges from climate change to food shortages. We 
continue to use our technology and our accumulated experience to offer new 
value to people around the world.
Development of fuel cells
  Dissemination of high-efficiency distributed power supply 
systems with an eye on the use of CO2-free hydrogen fuel
P.30
Development of lead-free 
piezoelectric materials
  Promoting substitution for lead-based piezoelectric 
materials
P.18
Development of sensing IoT business
  Improving operational efficiency through automation, 
optimization and generalization
P.29
Carbon Neutral as a service
  Establishing and introducing a synthetic fuel (methane) 
manufacturing system
P.17
Global human resources management
  The Group acknowledges that employees are the most important management 
resources. We believe that respecting the diversity and individuality of our more than 
16,000 employees around the world and creating an environment in which each and 
every employee can play active roles will lead to the development of the Group.
Recruitment of female, foreign 
national and mid-career employees
  Percentage of female/foreign national/mid-career 
employees in managerial posts: at least 25%
P.39
Development of new personnel 
system
  Improved results of employee satisfaction surveys
P.38
Governance
Corporate governance
  To achieve sustained growth and improve medium- and long-term corporate value, we 
believe that it is important to structure the Board of Directors with a team of people from 
different backgrounds with a variety of expertise and experience.
We also focus on enhancing the supervisory function of the Board of Directors and 
ensuring transparency in decision-making by improving the percentage of outside 
directors on the Board of Directors.
Increasing the percentage of female 
and foreign national directors
  Percentage of female and foreign national directors: at 
least 30%
P.46
Increasing the percentage of outside 
directors
  Percentage of outside directors: at least one-third
P.46
Risk management
  In the modern era of dramatic changes in the environment surrounding business, the 
risks that companies face are also diversifying. Responding to risks the wrong way 
could put a company’s survival at risk. The Group strives to carry out risk management 
from day to day, so that it can enhance its corporate value.
Management of signs of serious 
incidents and prevention of their 
occurrence
  Establishing a risk management system that contributes 
to management decision making
P.49
Compliance
  To develop the business of our Group, we must continue to be a company that is 
trusted by society. With recognition that our Group is a member of society, we aim to be 
a company that is trusted by all our stakeholders by appropriately meeting social 
demand.
Awareness surveys and continuous 
education for officers and employees
  Conducting compliance questionnaire surveys and 
disclosing the results
P.50
Information security
  Information technology is becoming more sophisticated every day, and we handle a 
variety of information assets in our business. Meanwhile, as cyberattacks and other risks 
increase, bolstering information security is key. The Group will also enhance information 
security by positioning information assets as one of its management resources. We will 
make effective use of them while protecting them appropriately.
Maintenance and enhancement of the 
incident response organization and 
establishment of a prevention system
  Establishing an information security management system
P.48
NGK SPARK PLUG CO., LTD. Integrated Report 2022
16
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

We have set priority issues (materiality) for ESG as we shift our focus on the ICE-related business to new businesses that can 
support a sustainable society. In the field of “Environment,” our materiality includes “Responding to climate change” and 
“Providing environmentally friendly products.” In the former, we will promote areas such as “initiatives aimed at realizing a 
carbon recycle-oriented society” and “internal carbon pricing.” Through these initiatives, we will contribute to the realization 
of a sustainable recycle-oriented society.
Regarding climate change issues, we aim to reduce CO2 emissions by 30% by FY2030 from the FY2018 level, with the goal of 
achieving carbon neutrality by 2050.
To achieve this, we are focusing on carbon recycling mechanisms, such as separating and recovering CO2 and using it as fuel, 
or using CO2 and hydrogen emitted from factories to create synthetic fuels. We are considering reducing CO2 emissions in the 
future by separating and recovering CO2 in the atmosphere and reusing it as fuel. We will use these and other methods to reduce 
our internal CO2 emissions and develop them as new businesses. We will also help to bring about a society in which CO2 
emissions steadily decrease, thereby helping to solve climate change issues.
Initiatives aimed at realizing a carbon recycle-oriented society (Carbon Neutral as a service)
Internal carbon pricing system and internal environmental funds
To accelerate efforts to reduce CO2 emissions across the company, we have launched the SX (Sustainability Transformation) 
Project and are putting together a framework that includes, among other things, an internal carbon pricing system.
The internal carbon pricing system began in July 2021 with a framework that contributes subsidies for environmental 
investment by internal companies from an internal environmental fund, which imposes a carbon tax commensurate based 
on the amount of CO2 emitted by each internal company and uses the collected tax as its source. By visualizing CO2 
emissions as an amount, we aim to increase incentives for achieving environmental goals, thereby promoting internal 
companies’ voluntary capital investment in response to climate change issues.
In addition, we launched a system for evaluating CO2 emissions at each internal company and consolidated subsidiaries 
in April 2022. We aim to create and introduce environmental financial indicators that promote sustainability management, 
while using these systems as drivers for reducing CO2 emissions.
 For CO2 emitted, a “carbon tax” is temporarily set aside
  The collected amount is allocated as an internal environmental fund for use in investment support and 
infrastructure development for decarbonization
Nittoku Group
Investment in renewable 
energy equipment and 
CO2 reduction equipment
Internal environmental funds
Internal carbon pricing
Incentives for billing and emission targets 
according to CO2 emissions
In-house Company A
In-house Company A
Control department
CO2 emissions slots
Boosting efforts to achieve 
carbon neutrality
Special 
Feature
Examples of Materiality Initiatives (1)
Responding to Climate Change
Methanation: Technology for artificially synthesizing CH4 from CO2 and hydrogen
CH4: Methane
e-fuel: Fuel produced by synthesizing CO2 and hydrogen
NGK SPARK PLUG CO., LTD. Integrated Report 2022
17
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction
CO2
CO2
CH4
e-fuel
Manufacture of synthetic fuels (CH4, e-fuel)
H2 
production
Using synthetic fuels for SOFC generators
CH4 
recovery
CO2 
recovery
Biogas recovery
As a major contributor to 
global warming, it needs 
to be addressed.
High-efficiency compact 
power generation  
with clean gas
Use of e-fuel
Enables continued  
use of internal  
combustion engines  
Continued use of existing 
infrastructure
Decarbonization
Natural energy storage
Distributed power sources
Local production and local 
consumption of electricity
Carbon recycle-oriented society
Small-scale methanation

Environmental considerations in the product lifecycle
Environment-friendly product certification system “Nittoku Green Products”
Initiatives in the design and development of products and services
Aiming to manufacture products that contribute 
to the realization of a sustainable society
The Group is committed to developing and providing environmentally friendly products. In this sense, all our 
products can be described as environmentally friendly. Among our products, an environment-friendly product 
certification system certifies products that have particularly high environmental performance from a product 
lifecycle perspective. At the Environmentally Friendly Products Certification Committee (held twice a year), which 
is headed by the Central Environmental Committee Chairman, products that meet the certification criteria are 
certified as “Nittoku Green Products” based on the evaluation in three environmental categories: energy saving, 
resource saving, and substances of concern.
In FY2021, when the system was launched, eight products were certified. Through this system, the Group will 
promote environmental considerations throughout the product lifecycle and communicate to all our stakeholders 
the excellent environmental performance of our products.
The Group has set the goal: “All products contribute to the improvement of the 
global environment and contribute to making sustainable society come true” 
as our 2040 Vision. We are working to develop and provide environmentally 
friendly products. For this reason, we are certifying products that have 
particularly high environmental performance as “Nittoku Green Products” and 
expanding them throughout the product lifecycle.
Processes that create new products and services or improve them for the 
better include research, development, process design, and packaging 
specification design.
In these processes, the Group also checks whether CO2 emissions can be 
reduced, whether resources can be reduced or used effectively, and whether 
there are any substance of concern included or used. If we find a significant 
impact on the environment, we implement necessary measures.
We will also ensure that our products and services comply with 
environmental and other laws and regulations, and that there are no ethical 
issues.
Research
Product 
development
Process design
Packaging 
specifications
Example of estimated reduction of CO2 emissions  Precious metal plugs and wide range oxygen sensors
Example of estimated reduction of CO2 emissions  Solid Oxide Fuel Cell (SOFC)
We assume that installing a precious metal plug or a wide range oxygen sensor improves 
automobile fuel efficiency by 2%, from 15 km/L to 15.3 km/L.
Over the course of driving 10,000 km in a year, gasoline consumption is reduced by 13 L per 
unit per year. This lowers CO2 emissions by approximately 30 kg.
If precious metal plugs are installed in 80 million automobiles, it will reduce CO2 emissions by 
approximately 2.4 million tons per year.
Likewise, assuming that wide range oxygen sensors have been installed in 25 million units, 
approximately 750,000 tons of CO2 emissions will be reduced.
<Calculation criteria>
 CO2 conversion coefficient of gasoline: 2.32 kg CO2/L (from Ministry of the Environment data)
 Assuming installation in an automobile with a four-cylinder engine
CO2 emissions when purchasing electricity from electricity companies
When purchasing 1.66 million kWh* of electricity, the CO2 emissions associated with electricity 
generation by power companies will be approximately 770 tons of CO2.
 
CO2 emissions when generated by fuel cells (SOFCs)
When the fuel cell (SOFC) generates 1.66 million kWh of electricity, the CO2 emissions will be 
approximately 530 tons of CO2.
 
When using 1.66 million kWh of electricity, electricity generated by fuel cells (SOFCs) can 
reduce CO2 emissions by approximately 240 tons compared to electricity purchased from 
power companies. In addition, by using the heat from fuel cells (SOFCs), the effect of reducing 
CO2 emissions is improved.
Categories
Evaluation items (product lifecycle perspective)
Energy saving
Reduced energy consumption
Resource 
saving
Lightweighting, use of recycled raw materials, longer 
life, etc.
Substances of 
concern
Non-use or reduced use of substances of concern, 
etc.
Nittoku Green 
Products
Environmentally 
friendly products
Evaluation categories
Products that meet the 
certification criteria
Wide range oxygen sensor 
“ZFAS
®-U3”
Fuel consumption 
15 km/L
Gasoline consumption 
667 L
Fuel consumption 
15.3 km/L
Gasoline consumption 
654 L
Fuel efficiency 
improved by 2%
Difference 13 L 
×
2.32 kg CO2/L
approximately 30 kg CO2
=
Electricity 
1.66 million kWh
CO2 emissions
Approximately 
770 tons of CO2
Conversion 
of CO2*
Electricity 
1.66 million kWh
CO2 emissions
Approximately 
530 tons of CO2
Conversion 
of CO2
Approximately 240 tons less CO2 
emissions than when purchasing 
electricity
Disposal
Examples of environmental 
considerations
Examples of environmental 
effects
Manufacturing 
of raw materials
Transport 
of raw materials
Manufacture 
in the Group
Shipping
Usage at the 
customer
End-user usage
Examples of products certified as “Nittoku Green Products”
Reduction of 
materials input
Change of 
transportation 
method
Streamlining within 
the Group
Change of 
transportation 
method
Reduced energy 
consumption in 
machining
Higher product 
performance
Recovery of 
products
 Effective utilization of resources
 Reduction of CO2 emissions in 
material manufacturing
 Reduction of CO2 emissions in 
transportation for procurement
 Reduction of CO2 emissions in product 
manufacturing, saving resources
 Reduction of emissions of 
substances of concern
 Reduction of CO2 emissions in 
product transportation
 Reduction of CO2 emissions in 
machining
 Reduction of CO2 emissions in 
use
 Reduction of emissions of 
substances of concern
 Saving resources through 
product recycling
Special 
Feature
Examples of Materiality Initiatives (2)
Providing Environmentally Friendly Products
Conventional products installed
High-performance product installed
Amount of annual CO2 emissions 
that can be reduced in 
automobiles installed with 
high-performance products
NGK SPARK PLUG CO., LTD. Integrated Report 2022
18
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction
BIDEMICS “JX1” 
for heat resistant alloy processing
Lead-free piezoelectric ceramics
Spark plug using precious metal 
(iridium alloy) in the center
* Annual power generation of SOFC system with an output of 200 kW
* CO2 emission coefficient 0.46

April 2020
April 2021
April 2025
March 2030
Long-term Management Plan
In FY2020, NGK SPARK PLUG has formulated the 2030 Long-term Management Plan “NITTOKU BX,” deeming 2030 as a milestone year for the growth of the company over the next two decades.
We, as a company, work together to achieve 2040 Vision.
Monozukuri 
Company
Unique core technology
 Established a dominant position in spark plugs
 Top market share of exhaust gas sensors
Optimum quality created by all employee participation and 
manufacturing/technological innovation
The No.1 leading company delivering “Real Value”
Highly Profitable 
Company
Global manufacturing and sales networks
 Average operating income ratio of approx. 15% over 5 years
 Overseas production ratio improvement (30% 
 40%)
  Starting the RHQ system of delegated authority and strengthening 
the Group’s abilities
Speedy, flexible business development capable of adapting 
to change
Sustained growth through strategic investment
Progressive 
Company
Corporate governance system for elevating corporate value
  Livelier discussions including outside directors and strengthening 
of governance
  Strategic M&A, establishment of joint ventures (WELLS, Japan MDM, 
NTK CERATEC, CAIRE, MORIMURA SOFC TECHNOLOGY, CECYLLS)
Assertive dialogue with stakeholders and contribution to 
people around the world
Operations that will support the development of society
Human “Asset” 
Company
Fair corporate culture in which diverse personnel can further excel
  Established The Nittoku Way. All employees share the values that 
Nittoku Group should adhere to, and pass on to the next 
generation.
Framework that allows people to be autonomous, challenging 
and active
High professional pride and company loyalty
Overview of NITTOKU SHINKARON
Our current businesses grew even more strongly. In our new businesses, although we continued to sow seeds, 
we have not yet demonstrated our growth vision.
269,232
28,770
10.7
8.6
7.8
15.7
17.9
17.3
14.4
16.4
13.7
11.4
24,478
23,754
51,661
62,196
66,284
53,595
67,279
58,385
48,447
284,746
302,798
329,758
347,636
383,272
372,919
409,912
425,013
426,073
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
Net sales (Millions of yen)
Operating income (Millions of yen)
Operating income ratio (%)
(Fiscal year)
For the solution of various social issues, we need to search for a new way of doing business by thinking beyond “What ceramics can 
do.” We aim to meet the challenge of going “beyond ceramics” and “exceeding the imagination” of society and ourselves, thereby 
changing “drastically beyond the current way” in 2040. We have created the 2030 Long-term Management Plan “NITTOKU BX” by 
backcasting from the 2040 Vision. We regard 2030 as a milestone year to ensure we are on the right path heading into 2040.
Change drastically beyond the current way
Beyond ceramics, eXceeding imagination
The 2030 Long-term Management Plan 
“NITTOKU BX” is a plan composed of three 
Medium-term Management Plans: the seventh 
Medium-term Management Plan (the last year of 
which was the first year of the Long-term 
Management Plan), a four-year Medium-term 
Management Plan and a five-year Medium-term 
Management Plan. We will further concretize this 
10-year plan. 
Structure of the 2030 Long-term Management Plan “NITTOKU BX”
Medium-Term 
Management Plan (4 years)
Medium-Term 
Management Plan (5 years)
Eco Vision 2030
7th 
Medium-Term 
Management 
Plan
P.21
2030 Long-term Management Plan “NITTOKU BX”(from FY2020 to FY2029)
Long-term Management Plan “NITTOKU SHINKARON”(from FY2010 to FY2019)
Looking back on “NITTOKU SHINKARON”
2040 Vision and the Long-term Management Plan
Net sales, operating income and operating income ratio
Our Ideal Image in the Year 2020
Shisei-Shinjitsu
Dokuritsu-Jiei
Shikai-Keitei
Soshi-Kantetsu
NITTOKU WAY
2040 
Vision
* We have been applying International Financial Reporting Standards (IFRS) since FY2019.
“NITTOKU 
SHINKARON”
2020
Current
2040
Vision
2030
*NITTOKU
BX
Long-Term 
Basic Policy
1.  Further evolving current 
businesses
2.  Establishing new 
business pillars
3.  Establish strong 
business 
infrastructures
Respect Dokuritsu Jiei. 
Start from scratch.
Break to change.
Change to create.
Extend for the future.
Spread out to exceed.
To foster a new corporate culture, we 
will work toward sustainable growth.
(2030 strategies and initiatives)
Milestones
Direction
2030 Long-Term Management Plan
Back 
Casting
NGK SPARK PLUG CO., LTD. Integrated Report 2022
19
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

426.2 billion yen
80%
20%
60%
40%
60%
40%
(Year)
2040
2030
2020
(when preparing Long-term Management Plan)
750.0 billion yen
 (Forecast)
Non-ICE business
ICE business
As the mainstay of the Long-term Management Plan, we will foster “business portfolio transformation.” As for ICE-related business, we 
will be able to expand revenue and operating income until 2030 in line with an increase in the number of ICE-equipped automobiles. 
However, in anticipation of the business environment in 2040, we need to pursue rationalization, higher efficiency and selection and 
concentration. As part of this initiative, we have shifted to an in-house company system in April 2021, while some departments were 
spun off. With more clarification of responsibilities and authorities, we will transform ourselves with speed. In new businesses, we aim to 
achieve a business value of 200 billion yen by 2030, working to achieve growth in each area in terms of sales and profitability. We aim to 
turn these businesses into our profit pillars in 2040, although their operating income margin may be still low in that year. We will increase 
efficiency in our ICE-related business with a focus on making profit, use the cash gained in that business for the growth businesses and 
achieve a profit growth rate that is higher than the market growth rate for the businesses. For new businesses, we will strictly screen the 
business themes to be continued, thereby revitalizing the new businesses. In order to promote this kind of business portfolio 
transformation, it is essential to achieve the following three aims: management innovation, clarification of responsibilities and authority, 
and willful cultural change. We will break our dependence on ICE-related business based on this recognition.
In our Long-term management plan, we have upheld “Change with Will !!” 
as the guiding principle, meaning “with a strong commitment (‘Will’), we 
will foster ‘Change’ for coexistence with society and people”. We aim to 
reform our organizations and business structure with speed to make 
our company one that can coexist with stakeholders from a global 
perspective.
Guiding principle
We are focused on both existing and new businesses in four fields: Environment & Energy, Mobility, Medical, and Communication. Our core 
competence includes ceramic materials technology, sensing technology and a global production/sales system. We will add “Something 
New” to these to create new value and foster “Open Innovation” both internally and externally, thereby achieving further growth in the four 
fields.
Business fields to focus on
Sales revenue composition
10%
30%
60%
82%
17%
1%
ICE business
Growth business
New business
FY2029
 (Forecast)
FY2019
140
120
100
80
60
40
20
0
2015 2020 2025 2030 2035 2040 2045 2050
Millions of units
2,500
Millions of units
2,000
1,500
1,000
500
0
2015 2020 2025 2030 2035 2040 2045 2050
Source: Forecasts made by NGK SPARK PLUG based on data provided by IHS Markit Automotive through its “Mobility and Energy Future” service
FCEV
BEV
Diesel
PHEV
FHEV
MHEV
Spark Ignition ICE
Equipped with internal 
combustion engines
Worldwide sales of 
new automobiles
Number of automobiles owned 
by people around the world
According to these graphs, which forecast the sales volume of new 
automobiles and the numbers of automobiles owned by people around 
the world, the number of those equipped with internal combustion 
engines will continue to increase until around 2030. However, in the 
middle of the 2030s, the number will peak and begin to go down. We 
therefore need to shift to a business structure that does not rely on the 
sales of products used in internal combustion engines by the middle of 
the 2030s.
Changes in the external business environment
NGK SPARK PLUG is currently doing business with a focus on internal 
combustion engines (ICE), but in the future, we need to be involved in 
more than ICE business and embrace the challenge of starting new 
businesses to transform our business structure. Specifically, as the 
2040 targets, we aim to decrease the proportion of ICE business in our 
total sales revenue from the current 80% to 40% while raising that of 
non-ICE business from the current 20% to 60%, thereby transforming 
our business portfolio. To achieve these targets, we will decrease the 
ratio to 60% and increase the ratio to 40 % for ICE business and non-
ICE business, respectively, as milestone targets for 2030 under the 
2030 Long-term Management Plan “NITTOKU BX.”
Transformation of the business portfolio
Sales revenue composition
*Ceramic material technology, application technology in harsh environments, disparate material bonding technology, sensing technology, rapid high-temperature heating technology, and global production and sales system
To an energy efficient and environmentally-
friendly society
To a mobile society that is fun and 
convenient
To bring advanced medical care to 
people all over the world
A high-speed communication society 
where virtual and reality are connected
  Using sensing technology to improve industrial efficiency
  Stable supply of regenerated energy
  Providing maintenance services according to your 
lifestyle
  Improving electricity using ceramic components
  Providing MaaS (Mobility as a Service) to fit special 
needs
  Non-invasive diagnosis and treatment, and provision of 
preventive equipment and services using ultrasound 
technology
  Provide infrastructure parts to support high-speed 
communication
Secure profit while transforming the business portfolio
Super efficiency and cash generation
ICE 
business
Drastic development exceeding the market 
growth rate
Growth 
business
Selecting and choosing theme and 
commercializing cutting-edge themes
New 
business
The 2030 Long-term Management Plan “NITTOKU BX” shows the 
midway milestone for our 2040 Vision. Under this plan, we will strive 
for business portfolio transformation, clarification of responsibilities 
and authority and investment in new businesses. In line with the 
guiding principle, “Change with Will !!” which should be followed by all 
employees, we will achieve “Beyond ceramics, eXceeding imagination” 
to be reborn as a new NGK SPARK PLUG Group.
For the management targets for FY2029, we aim to achieve an 
operating income ratio of 15% or more, ROE of 12% or more, and 
ROIC of 10% or more.
ROE
12% or more
 (FY2021: 12.5%)
Management Innovation
  Small, strong and agile head office to support the transformation of 
our business portfolio
 Quick management decisions supported by DX
Clarification of Responsibilities 
and Authority
  Strong authority and strict responsibilities to promote the 
transformation of our business portfolio
  Build an optimized structure and system for each business
Willful Cultural Change
 Undertake culture reform and strengthen the Group’s abilities
Core 
Competence*
Environment & 
Energy
Mobility
Communication
Medical
“Transformation of Our Business Portfolio” for Growth
1
2
3
Operating 
income ratio
15% or more
 (FY2021: 15.4%)
ROIC
10% or more
 (FY2021: 7.9%)
Strategy
2030 Long-term Management Plan “NITTOKU BX”
Specific measures
Management target
Long-term Management Plan
* Forecast when preparing Long-term Management Plan (2020)
Change from ICE-oriented businesses
Change with Will !!
Create a sustainable society
IGNITE YOUR SPIRIT
Make our dream come true
Innovation
Global thinking
Change
with Speed !!
with Fairness !!
with a Global mindset !!
Will
with
Diverse personnel
Strive for fairness
Professional companies, organizations, and human resources
Spirit of Dokuritsu Jiei (self-reliance)
Optimize for speed
NGK SPARK PLUG CO., LTD. Integrated Report 2022
20
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Medium-term Management Plan
In our Medium-term Management Plan, we will work on zero-based reforms to achieve our 2040 Vision and the 2030 Long-
term Management Plan “NITTOKU BX,” which will be the milestone for the vision. Here we explain the overview.
We aim to achieve revenue 
of 600 billion yen and 
operating income of 100 
billion yen in the fiscal year 
ending March 31, 2025, the 
final year of our 2025 
Medium-term Management 
Plan.
*  Calculated based on the business plan at the time of formulating the Medium-term Management Plan  
(excluding additional M&A during the medium-term plan period)
 Invest in non-ICE business
 Promote transformation of human resources portfolio
 Strengthen earning power through ROIC management
To achieve the transformation of our business portfolio, we will maximize cash generation in current 
businesses and proactively allocate management resources optimally to growth and new businesses.
Business strategy
Cross-company operations
  Determine an appropriate business scale 
and maximize cash generation through 
ultra-efficiency
Current 
businesses
  Achieve business growth that exceeds 
the market growth rate
Growth 
businesses
  Realize new businesses pillars and 
shorten the business creation cycle
New 
businesses
Break down the barriers of conventional thinking with NITTOKU DX
Transform all aspects of Nittoku culture, including management  
decisions, business domains, work styles, and corporate climate
Promote investment in non-ICE business 
and conversion of human resources
Achieve accelerated business growth
Further strengthen earning power through ROIC management
Maximize the cash-generating capacity of the plug and sensor businesses
Run on two wheels while current and new businesses operate independently
Introduce individual systems and performance-based compensation  
systems that match the business environment
Each company ensures its competitive 
advantage and practice Dokuritsu-Jiei
Transformation of business portfolio
Achieving change beyond the current way
Contribution to society 
to be accomplished
Value creation
Measures
Policy
Specific target
Vision
Improve business activities and start new businesses  
to realize a sustainable recycling society
Set and implement sustainable business operation goals
Key 
Initiatives
Performance 
Goals
Protecting the global environment is the foundation of a sustainable society. For all our stakeholders, we must face it head on as a key 
management issue.
On the premise of aiming for carbon neutrality in 2050, we have established “Eco Vision 2030,” which shows the vision (or goal) of 
what we want to be by 2030 and the vision of what we will pursue until 2040.
For Eco Vision 2030, the impacts that our businesses and products would have on society and our company were analyzed, and 13 
issues that would have a large impact were selected. Among them, the four issues that were considered to have a greater impact – 
“Responding to Climate Change,” “Expanding Environmentally Friendly Products,” “Conserving Water Resources,” and “Waste 
Management” - were positioned as the four important issues, and numerical goals were set for them. Through the practice of Eco Vision 
2030, our group will work together to contribute to the realization of global carbon neutrality and zero emissions.
Long-term Management Plan
Eco Vision 2030 issues
The milestone to be achieved in 2030
Our vision for 2040
Responding to 
Climate Change
CO2 emissions:
30% reduction from the FY2018 level
Implementing activities toward realization of a decarbonized 
society
*Aiming for carbon neutrality by 2050
Expanding Environmentally 
Friendly Products
Expand Nittoku Green Products
All products contribute to the improvement of the global 
environment and contribute to making sustainable society come 
true
Conserving Water 
Resources
Water consumption intensity:
Keep below FY2018 level
Implementing sustainable business operations in response to 
global water risks
Waste Management
Achieve over 95% effective utilization rate
Contribute to a global recycle-oriented society by promoting 
zero emission
Reduce at least 1% of waste intensity compared 
to FY2018
Promote 3R (reduce, reuse, recycle) activities
Eco Vision 2030 issues
The milestone to be achieved in 2030
Our vision for 2040
Upgrading 
EMS
Integration with management
Incorporate global environmental issues into 
business strategy
Continuing to incorporate global environmental 
issues into business strategy
Environmental KPI (Eco Vision 2030) initiatives and 
management commitment to achieve them
Globalization of EMS
Work to improve environmental information sharing 
with overseas Group companies as well as 
monitoring and supervisory functions
Continuing to carry out environmental information 
sharing with overseas Group companies as well as 
monitoring and supervisory functions
Analysis of climate-related risks and 
opportunities
Analyze climate change risks and opportunities and 
incorporate responses into business strategy
Ensuring business sustainability by analyzing 
climate change risks and opportunities and 
incorporating responses into business strategy
Implementing environmental 
compliance 
(compliance with environmental laws 
and regulations and elimination of 
environmental accidents)
Aim for zero violations of environmental laws and 
regulations and zero environmental accidents
Being a company trusted by society by maintaining 
zero violations of environmental laws and 
regulations and zero environmental accidents
Raising environmental awareness
All employees take environmental education 
programs and actively engage in environmental 
conservation activities
All employees have a high level of environmental 
awareness and are able to contribute to the 
realization of a sustainable society as a company
Chemical substances management
Carry out appropriate chemical substances 
management and reduce environmental impact
Continuously carrying out appropriate chemical 
substances management to help conserve 
biodiversity
Green procurement
Achieving 100% introduction of the green 
procurement system
Carrying out procurement with a low environmental 
impact so that we can help realize a sustainable 
society
Green logistics
Promoting green logistics and reducing CO2 
emissions by optimizing logistics efficiency
Achieving green logistics globally
Enhancement of environmental 
information disclosure
Responding to stakeholder requests and using 
communication to foster dialogue
Responding to stakeholder requests and using 
communication to foster dialogue
4 important issues
Other issues
Eco Vision 2030
FY2021
FY2024
…FY2029
Revenue 
(billions of yen)
491.7
600.0
750.0
Operating income 
(billions of yen)
75.5
100.0
—
Sales composition
ICE: Non-ICE
80%:20%
75%:25%
60%:40%
Operating income ratio
15.4%
17%
15% or more
ROIC
7.9%
10%*
10% or more
ROE
12.5%
13%*
12% or more
NGK SPARK PLUG CO., LTD. Integrated Report 2022
21
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

We newly established the Business Transformation Division in order to judge as to whether to continue or withdraw from an unprofitable business. 
The Business Transformation Division formulates and implements plans for the “business revitalization” of an unprofitable business or “withdrawal or 
business sale, etc.” In the event that a company comes under the organization of the Business Transformation Division, a revitalization plan will be 
formulated under the new company president. Simultaneously, the Business Transformation Division formulates another revitalization plan under 
different point of view. Finally, the Global Strategy Division assesses them in respect of probability, thereby enabling us to implement the best 
business strategy from multiple perspectives. The Board of Directors, Business Transformation Division and Global Strategy Division have all been 
strengthened with outside human resources to establish a system that enables a rational decision-making.
Business Partner (BP) / Company aims at providing high-value-added services that are market-competitive in order to contribute to 
enhancement of the business companies’ profitability. By introducing the in-house company system, we were able to visualize the costs of 
each organization and its contribution to the business, which have been difficult to come to surface. Also, the services will not be evaluated 
based on internal standards, and will be compared with those of market. By grasping the service levels of other companies and identifying 
areas for improvement, we will improve the quality of our services step by step, and at the same time, we will expedite cost reduction by 
separating services with high added value from those that should pursue higher efficiency.
Procurement / Accounting / Human Resources / Labor / IT / Public Relations /  
General Affairs / Intellectual Property Management / Quality Control / Environmental Safety
  Recognize the current situation of 
your department, comparing with the 
service level of other companies and 
make improvements
  Improve professional skills by 
educating employees
  Start preparing for external sales
  Improve professional skills by 
educating employees
  Achieving both maximization of opera-
tional efficiency and improvement of 
quality
  Raise BP’s awareness of being a profit 
center by watching its own income 
statement
  Identify problems and implement 
countermeasures
  Continuation of business evaluation 
and improvement
  Consideration and implementation of 
drastic measures in the event that 
service improvement and cost reduc-
tion cannot be achieved during the 
medium-term management plan period
Providing market-competitive, high-value-added services
Grasp
Understanding the 
current situation
Change
Business improvement
Improvement
Improving the 
quality of service
Expansion
Expansion of range
FY2021
FY2022
FY2023
FY2024
Improvement of 
expertise
Cost reduction
Business Partner (BP) / Company Aims
Implementation process
Board of Directors
Business Company
Business 
Transformation 
Division
Global Strategy 
Division
  Decision and rating to join the 
Business Transformation Division 
  Appointment of new company 
presidents
Judgment of business 
withdrawal/continuation
  Examining 
business direction
Continuous 
monitoring in 
terms of both 
quantitative and 
qualitative 
aspects
Business plan formulation and evaluation
Monitoring target
Business plan decision
Unprofitable businesses
  Management audit of 
business plan
 Formulation of business plan
Plan A
 Reconstruction plan by M&A
  Study of business sale, 
internal restructuring and 
withdrawal
Plan B
Business continuity/
withdrawal examination flow
Regarding the ROIC management that was not fully in place 
throughout the Group during the period of the previous Medium-term 
Management Plan, we have identified priority measures that should 
be undertaken to improve the investment efficiency. We will achieve 
10% ROIC by subdividing the challenges and responsibilities that 
must be undertaken at individual business and monitoring KPIs. We 
will continue to work on increasing our market share in high value-
added products, improving equipment and labor productivity as well 
as reducing fixed assets in the internal combustion engine business 
over the medium to long term. In particular, during the period of the 
medium-term management plan, we will focus on the following 
priority measures: Cost reduction in indirect departments, review of 
unprofitable businesses by setting rules for business withdrawal, and 
reduction of inventories by optimizing the supply chain.
As part of our initiatives to transform the business portfolio, we introduced an in-house company system in April 2021. We have introduced this system 
not only for business departments but also for functions at headquarters. The organization that used to be a part of the headquarters or functional 
headquarters has been reorganized into the Global Strategy Division and Business Partner / Company, and a small number of strategic staff are 
assigned to the Global Strategy Division. The organizational structure is designed to position each business and function as an independent pseudo-
company. Through this organizational change, each company receives internal capital allocated by the headquarters, and will be responsible not only for 
PL, but also for BS and CF, thereby clarifying responsibility for return on investment as well as a decision to invest. In addition, the responsibilities and 
authorities, which were ambiguous in the past under the division system, will be clearly defined by for example optimizing the structure and rules to 
match the standards of the industry to which each company belongs. The Global Strategic Headquarters will promote global group management and 
accelerate the maximization of the business value according to its business position under the policy of Dokuritsu-Jiei.
We will strengthen business portfolio management 
by setting hurdle rates for each business segment. 
Assessing the businesses using the two axes of 
growth potential and investment efficiency, we 
determine the future direction. KGI and KPI are set 
for each company after defining expected roles 
based on rating in accordance with each 
company’s position in the market.
ROIC
Market share 
increase in high 
value-added products
Improvement of 
equipment and 
labor productivity
Cost reduction in 
indirect departments
Review of unprofitable 
businesses by setting rules 
for business withdrawal
Reduction of inventories by 
optimizing the supply chain
Reduction of fixed assets 
in the ICE business
Cost of 
sales ratio
SGA ratio
Revenue
Working 
capital 
turnover (%)
Operating 
income ratio
Return on 
invested 
capital (%)
Fixed asset 
turnover (%)
Key initiatives for 
improvement
ROIC 
improvement 
drivers
Target of 
medium-term 
plan 
10%
Focus points during the period of the 
Medium-term Management Plan
Efforts to improve capital efficiency
Efforts to transform the business portfolio
Generation 
of FCF
(Investment 
minimization)
Revenue expansion
Achieve higher 
profitability
(Enhanced investment)
Withdrawal
Revenue 
structure reform
Revenue 
expansion
(Ascertainment of 
future direction)
Growth potential
Investment efficiency
Disclosure segments
Medium- to long-term direction
Enhance cash generation and aim for 
even higher profits
Automotive 
components
ICE 
business
Build a profitable structure that is 
resilient to changes in the external 
environment and expand sales
Business scale growth exceeding the 
market growth rate and improvement 
of profitability
Ceramics
Growth 
businesses
Discover new businesses that will be 
the pillars of new businesses and 
build scenarios for commercialization
New 
businesses
New 
businesses
Traditional organization
New organizations from April 2021
Roles
Corporate 
Domain 
Corporate division
   Global Strategy Division
 Planning of company-wide strategies    Enhancement of global governance   
 Promotion of business portfolio transformation through optimal allocation of management resources   
 Business withdrawal/continuity governance
Business support department    Business Partner (BP) / Company
Contribution to the maximization of company-wide earning capacity
 Advancement of the services provided    Cost reduction through efficiency improvement
Improvement of company-wide earning capacity contributed by Business Partners (BP) / 
Divisions
Business department
   Business company/spin-off
 Improvement of the ability to adapt to changes by introducing systems and structure tailored to each market environment.   
 Achievement of KPI and KGI at each company
Long-term Management Plan
Efforts to improve 
capital efficiency
Efforts to transform the 
business portfolio
Cash flow planning
Shareholder return policy
Business strategy
The Finance Officer Outlines 
the Financial Strategy
P.23
Business 
Strategy
P.24
Specific efforts
Business continuity/withdrawal examination flow
Improvement of company-wide profitability by introducing Business Partners (BP) system
Introduction of an in-house company system
Business portfolio management
NGK SPARK PLUG CO., LTD. Integrated Report 2022
22
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

The Finance Officer Outlines the Financial Strategy
Kenji Isobe
Executive Officer
While aiming to improve 
capital efficiency, we will 
steadily work toward the 
next phase of growth.
Achieved growth in both revenue and profits for 
the FY2021 performance
FY2021 was a year in which we were exposed to a variety of 
external factors, including soaring raw material prices and 
sluggish automobile production due to a shortage of 
semiconductors, as well as problems stemming from Russia’s 
invasion of Ukraine in February 2022.
The consolidated performance resulted in growth in both 
revenue and profits. These results were buoyed significantly by 
exchange rate fluctuations and higher sales of our profitable 
automotive aftermarket parts, which improved the product mix.
Operating income increased in FY2021. This resulted in an 
improvement in ROIC, one of the key management control 
indicators, which was 7.9%. However, from a qualitative 
standpoint, challenges remain for the ROIC management that we 
aim to achieve.
In adopting ROIC as a management indicator, we started from 
an awareness of the issue that although we are a highly profitable 
company, there may be room for us to increase capital efficiency.
Returning to that perspective and reviewing our business in 
FY2021, we were forced to raise inventory levels due to factors 
such as logistics disruptions and rising maritime transportation 
costs. As a result, although operating income increased, we were 
unable to reduce inventories in working capital. This meant that 
our improvements fell short of ROIC management targets, so 
challenges remain.
Assess profitability and growth to determine 
whether continuation of business is viable
Our business is broadly divided into three businesses: the ICE 
business, which includes the Automotive Components; the 
growth business, which includes the Ceramics; and the new 
businesses that we will create to transform our business portfolio. 
The biggest need for improvements to ROIC is in our cash cow, 
the Automotive Components (ICE business). We break down 
ROIC by business, set targets, and track progress in the 
Automotive Components, as well as the Ceramics, which we plan 
to grow.
In addition, each internal company breaks down ROIC into 
trees and manages them individually. Furthermore, apart from the 
ROIC for each business, we set the WACC (weighted average 
capital cost). We maintain awareness of ROIC and WACC as we 
operate the business and make investment decisions.
Meanwhile, we may decide to withdraw from low profit 
businesses or businesses that are not expected to grow in the 
future. For example, in FY2021, we withdrew from some products 
in the medical business and sold all of our shares in Japan 
Medical Dynamic Marketing, INC., an equity method affiliate. We 
believe that through selection and concentration of such 
businesses, we will achieve improvements in ROIC in the medium 
to long term.
Aim to reduce inventories by rectifying production 
and logistics
We hope that the logistics disruptions that have continued since 
last year will be resolved as soon as possible. However, we 
cannot afford to look on at the situation without doing anything.
We are carrying out a project aimed at supply chain reforms. In 
this project, we are working to rectify production and logistics by 
reviewing them globally. We want to prevent the problems such 
as bottlenecks and backflow that can arise when things and 
information are not organized in production and logistics. For 
example, one of these efforts is to reduce the number of product 
numbers, which reduces the amount of time that products and 
work in process remain at the production site or in the 
warehouse. By bringing production processes and logistics closer 
to optimization in this way, we can reduce inventories. We expect 
that we will see the effects of this rectification gradually emerge in 
FY2023.
Through this rectification approach, as well as other measures 
within the Group, we aim to improve ROIC by reducing working 
capital, which is the denominator of ROIC. By also withdrawing 
from the unprofitable business mentioned earlier, we aim to 
achieve the Medium-term Management Plan target of 10% ROIC.
Allocating earned cash for the next phase of 
growth
Our basic idea of how to use earned cash has not changed. The 
ICE business is a cash cow of the Group. The cash earned from 
this business is actively distributed to new businesses, including 
growth businesses, in a balanced manner to maximize long-term 
profits.
Determine investment based on recoverability
Now I will talk more about how we use cash. It is not our policy to 
distribute all cash earned from the Automotive Components to 
other businesses.
For example, there are areas where there is room for growth in 
the Automotive Components, so we will invest if we have a viable 
plan for recovery. In doing so, we will also consider the WACC 
mentioned earlier.
In that sense, there is also plenty of potential to redistribute the 
earned cash to the Automotive Components. We will review and 
make decisions each time so that we do not miss opportunities 
for business expansion and profit maximization in the medium 
and long term.
The automotive components business is expected to decline 
after internal combustion engines have peaked. However, our 
strength is that we still have the earning power in the market for 
aftermarket parts. We can expect that situation to continue for a 
while. New businesses in the Automotive Components could also 
emerge from the global distribution network that operates in the 
market for aftermarket parts. In that sense, there is room for 
investing in new projects in the Automotive Components to 
recover proceeds and return them to shareholders.
In addition, we of course distribute cash to areas such as 
growth businesses. From a longer-term perspective, we also feel 
a need to consider investing in human resources. Money is not 
the only asset a company has. People are also assets. I believe 
that we should also invest in people, which are a company’s 
valuable assets, as we drive the transformation of the business 
portfolio.
Adhere to the profit return policy and promote IR 
with a focus on fostering dialogue
With respect to shareholder returns, from FY2021, dividends 
were fully performance-linked. We significantly changed our 
annual dividend payout ratio to 40%. Our idea is basically to 
continue this policy.
In the last few years, we have seen the stock price behave like 
that of an internal combustion engine stock. We feel that there is 
a gap between the evaluation from the stock market and the 
actual situation. There were occasions when I felt that despite our 
performance being not so bad and that our profit margins very 
high, our performance was not properly evaluated.
When we meet with shareholders and investors, we first tell 
them about how well our company is performing. In particular, 
after the automotive components business peaks, the business 
for aftermarket parts will remain for the next 10 or 20 years, 
considering the number of automobiles owned. Our products 
have a high market share and a high profit margin, so there is still 
room for steady growth. Focusing on these strengths in the 
Automotive Components, we have explained them to 
shareholders and investors over the past year in particular. I think 
the stock market now appreciates that the automotive 
components business has continued to grow and continues to 
provide a source of revenue. This has contributed to a recovery of 
the stock price.
In addition, we announced that we will change the Company’s 
English name to Niterra in FY2023. We did this out of 
consideration that the former company name “NGK SPARK 
PLUG” leads to the categorization as an internal combustion 
engine stock. That can become an initial barrier that holds back 
overseas investors’ investments.
In FY2022, we held a business briefing for shareholders and 
investors in May. As well as our strengths in the Automotive 
Components, we took the opportunity to communicate our 
growth strategies in other businesses. For example, given that 
the semiconductor sector is very dynamic, we explained about 
the SPE business, which deals with products for semiconductor 
production equipment. We also talked about our new business, 
the fuel cell business.
This kind of dialogue with shareholders and investors is also a 
valuable opportunity. We will use IR activities such as briefings to 
thoroughly communicate our business strategies and growth 
strategies.
NGK SPARK PLUG CO., LTD. Integrated Report 2022
23
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Business Strategy
The importance of tackling climate change has increased 
substantially during the past few years, and governments around 
the world have been moving swiftly to become decarbonized 
societies. The automobile industry is in the midst of a once-in-a-
century period of radical transformation, with automakers 
developing electric vehicles (EVs) as nations move with greater 
speed toward electrification in order to reduce CO2 emissions. 
Amid this trend, the electrification of power trains is occurring 
even faster than was predicted just a few years ago. HEVs 
(hybrid vehicles) are expected to proliferate over the medium 
term, while ZEVs (zero-emission vehicles) are likely to dominate 
over the long term.
However, although the number of vehicles equipped with ICE 
is expected to decrease after 2030, demand from the repair 
parts market is expected to continue over the long term, as 60% 
of the total number of vehicles will still be equipped with ICE as 
of 2050, and more than three-quarters will remain compared to 
the peak year.
metal spark plugs already account for around 40% of sales, and by replacing regular nickel spark plugs with them, it 
would be possible to achieve a significant improvement in fuel efficiency. By selling precious-metal spark plugs, which 
help boost fuel efficiency, we will meet the needs of the market.
2,000
1,500
1,000
500
2,500
0
2050
2045
2040
2035
2030
2025
2020
MHEV
FHEV 
FCV
BEV
PHEV
Diesel 
Spark Ignition ICE
Spark Ignition ICE
Diesel 
MHEV
FHEV 
PHEV
BEV
FCV
Number of 4W automobiles held globally
Electric
ICE
+
electric
ICE
Areas in which 
we contribute
EV
(Millions of units)
(Year)
We have also been expanding our share of the market for exhaust gas oxygen sensors, for which demand has been growing in 
response to a global tightening of environmental regulations. The expansion of regulatory scope to cover not only automobiles but also 
motorcycles has resulted in a particularly large jump in demand for sensors for controlling the quantity of fuel injected. Demand for these 
sensors for both autos and motorcycles has been rising. The need for sensors with higher performance that can assure compliance 
with standards is mounting. Such sensors are more technologically advanced than the typical oxygen sensors that have been 
mainstream until now, and include wide-range oxygen sensors capable of measuring oxygen concentration in exhaust gas more 
precisely as well as NOx sensors capable of measuring nitrogen oxide.
Against the backdrop of these rapid moves toward decarbonization, the need for electrically-powered 
vehicles that offer high levels of fuel efficiency, such as HEVs and PHVs, is increasing. Our range of spark 
plugs include the regular nickel type as well as precious metal types, which are highly fuel efficient. The 
precious-metal spark plugs are said to offer fuel efficiency that is around 2% higher than the regular types. Precious-
By concentrating investment on high-value added products like these spark plugs and exhaust gas oxygen sensors, maximizing 
investment effectiveness, pursuing ultra-efficiency, and expanding our share of the market for high-profit-margin products, we will 
maximize cash generation. We will curb increases in inventory by raising productivity, identify supply chain issues on a cross-
organizational basis encompassing procurement, manufacturing, logistics, and sales, clarify responsibilities, and endeavor to trim 
inventories.
Like spark plugs, exhaust gas oxygen sensors now need to be high-value added products with a stronger environmental 
contribution. Compared with regular oxygen sensors, our next-generation oxygen sensors and wide-range oxygen 
sensors can contribute to reduced CO2 emissions through more precise measurement of oxygen concentrations, and 
they therefore allow compliance with strict environmental regulations.
Although HEVs and ZEVs are expected to increase over the medium to long term, this does not mean that ICE equipped vehicles will 
disappear immediately. Because it is important to reduce CO2 emissions during the transitional period of electrification, we will continue 
to provide high value-added products to the market and contribute to the environment.
(1) Market share expansion in high value-added products
(2)  Curtailing of investment thanks to productivity improvement and increase in capital efficiency 
thanks to inventory reduction
Integrated production system from 
material development to manufacturing
Unique sales channels around the world
Projected ICE demand
Automotive Components Group
KGI (New Medium-term Management Plan)
Strength
Annual average growth rate: 1% 
1.5times (compared with the amount for FY2020)
Operating 
income 
ratio
Free cash 
flows
KGI
External environment
Stricter environmental regulations
Vision
Precious metal plugs, which are high value-added products, already 
account for nearly 70% of original equipment plugs, but account for 
only about 30% of products for the aftermarket. Because the 
percentage of precious metal plugs for original equipment tends to 
indicate the percentage of precious metal plugs in the aftermarket 
10 to 15 years from now, we expect that precious metal plugs will 
increase in the aftermarket at an accelerated pace in the next fiscal 
year and beyond. Automobile production is expected to peak out in 
2030, and sales of products for original equipment are also expected 
to start declining, but sales of precious metal plugs will continue to 
increase because replacement demand for aftermarket products will 
continue beyond that time. In terms of unit sales prices, those of 
aftermarket products are higher than those of products for original 
equipment, so even if the overall sales volume of spark plugs starts 
to decline, sales are expected to continue to grow beyond 2030, 
contributing to earnings.
Forecast of spark plug sales volume and amount and 
performance of aftermarket products by type
Plugs
Sensors
0
20
40
60
80
Not only do they improve starting, acceleration, and idling stability, but they also improve combustion efﬁciency by producing a stronger 
spark. Replacing nickel plugs with precious metal plugs can improve fuel efﬁciency by approximately 2%, contributing to the reduction 
of carbon dioxide emissions as the number of vehicles equipped with precious metal plugs increases.
Environmental contribution of precious metal plugs
Already promoting approximately 
80% conversion to precious metal 
plugs for original equipment, and 
increasing the ratio of precious metal 
plugs in the repair parts market
With the tightening of 
environmental regulations, the 
shift to precious metal plugs is 
rapidly advancing for both original 
equipment and the aftermarket
Demand for precious metal plugs is 
expected to increase for the original 
equipment market. Aiming to grow 
sales in the future
North 
America 
and 
Europe
China
Asia
31%
68%
32%
Precious metal plugs as a 
percentage of products 
for original equipment
Precious metal plugs as a percentage 
of products for the aftermarket
Period for reaping the results in the aftermarket
FY2018
FY2017
FY2016
FY2015
FY2014
FY2013
FY2012
FY2011
FY2010
FY2009
FY2008
FY2007
FY2006
FY2005
FY2021
FY2020
FY2019
Decarbonized society
Sales volume of plugs for original equipment
Sales volume of precious metal plugs for aftermarket
Sales volume of nickel plugs for aftermarket
2050
2045
2040
2035
2030
2025
2020
2015
Overall sales 
amount of 
spark plugs
Assumptions for sales amount
Estimated based on the average unit price in the ﬁrst half of FY2021
Estimated assuming that the current market share remains constant
Precious metal plug ratio by commercial distribution
NGK SPARK PLUG CO., LTD. Integrated Report 2022
24
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Business Strategy
Automotive Components 
Looking back on the first year of the Medium-term Management Plan
387.8 billion yen
19.2%
Revenue
Operating 
income 
ratio
Revenue (billions of yen) and operating income ratio (%)
78.9%
Revenue 
composition
Changes in sales volumes of automotive products by region
Revenue increased by 22% year on year, reaching a new record high. Sales of spark plugs for original equipment were 
noticeably sluggish in major regions as automakers’ production was constrained by the shortage of automotive 
semiconductors, which had been continuing since the beginning of the period. Compared to FY2020, which saw a large 
drop in sales due to the impact of the spread of COVID-19, sales remained slightly higher. On the other hand, strong demand for 
aftermarket spark plugs continued due to an increase in maintenance demand, and sales exceeded those of the same period of the 
previous year, especially in North America, Europe, and China, resulting in overall sales of spark plugs for the aftermarket showing a 
double-digit growth rate year on year. Although the sharp rise in raw material prices since the beginning of the fiscal year was a negative 
factor for operating income, we have made efforts to reduce the impact through price revisions for both original equipment and 
aftermarket spark plugs to offset the sharp rise in prices. In addition, due to strong sales of high-margin aftermarket spark plugs, 
operating income in the Automotive Components Group, including the sensor business, reached a record high.
Plugs
Although sales volume declined throughout the year, foreign exchange effects resulted in a 3% increase in revenue 
compared to the previous fiscal year. As with spark plugs for original equipment, the unstable automobile production 
continued throughout the year due to factors such as the shortage of automotive semiconductors. Therefore, sales 
volume declined for all major products with the exception of some products. From the fourth quarter onward, although automobile 
production in North America, Europe, and other regions gradually recovered, sales declined slightly year on year when excluding the 
impact of foreign exchange rates. Sales volume of exhaust gas oxygen sensors decreased 2.6% year on year in North America, 5.6% 
year on year in Europe, and 13.3% year on year in China, falling below the level a year ago in all major markets and 3.2% year on year 
overall. Demand for oxygen sensors for motorcycles, which increased significantly last year with the adoption of emission norms in India, 
has also settled down, and results were almost on a par with the previous year.
Sensors
Outlook for FY2022
Although we expect the supply shortage of components such as automotive semiconductors to continue, we anticipate a 
gradual recovery from the second quarter onward. As automobile production recovers, we estimate that sales of spark 
plugs for original equipment will also increase and that sales of spark plugs for aftermarket will remain at last year’s level, 
and we plan to achieve a new record high in our revenue in FY2022 as well. With regard to price revisions due to soaring raw material 
prices, we were unable to reflect all the effects of the price revisions throughout the year in FY2021 because we started our initiatives 
during the period, but we will be able to reflect them from the beginning of FY2022. In addition, we will continue negotiations with 
manufacturers with whom we are negotiating prices of spark plugs for original equipment, with the aim of further improving profitability. 
Through these measures, we plan to achieve record-high operating income in FY2022 as well.
As in the case of plugs, we plan a year-on-year increase in sales due to an expected recovery in automobile production 
from the second quarter as a result of the resolution of supply shortages of semiconductors and other components. While 
the sensor business, which is mainly OEM supply, is expected to face headwinds in the form of lower demand due to the 
accelerating shift to EVs, we will continue to fulfill our obligation to supply high-quality products and meet the expectations of customers 
so that the automotive industry as a whole can continue its business. Even after demand peaks out, we will continue to contribute to 
the resource cycle for the creation of new business pillars by leveraging our advantages in terms of high market share to improve 
profitability.
Plugs
Sensors
Sales volume by region (FY3/21 vs FY3/22)
Spark plug
OEM: -1.3%   AM: +19.3%
Exhaust gas oxygen sensors  
-5.6%
*The ﬁgures for spark plugs include those for motorcycles. 
Spark plug +10.2%   Exhaust gas oxygen sensors -3.2%
(OEM: +1.4% AM: +13.1%)
(Global automobile production: -2.1%)
Europe 
(Market: -8.7%) 
Spark plug
OEM: -5.3%   AM: +1.8%
Exhaust gas oxygen sensors  
-13.3%
China 
(Market: -6.7%)
Spark plug
OEM: -4.7%   AM: +3.6%
Exhaust gas oxygen sensors  
-2.6%
North America 
(Market: +1.2%) 
Spark plug
OEM: +17.4%   AM: +10.5%
Exhaust gas oxygen sensors  
+28.3%
ASEAN 
(Market: +29.4%)
Global
137.8
250.0
387.8
162.3
281.7
444.0
Plug business
Sensor business
(Fiscal year)
2021
2022
 (Forecast)
19.2
21.2
Overview of FY2021
NGK SPARK PLUG CO., LTD. Integrated Report 2022
25
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

With the new high-speed telecommunications standard (5G) 
proliferating and lifestyles changing as a result of the impact 
of COVID-19, demand for chips for use in IoT and AI is 
increasing, and total sales of production equipment for 
upstream semiconductor fabrication processes are expected 
to grow at a rate of 5% per year until 2025. Regarding 
market needs, the memory market requires high-rise 3D 
NAND devices, and what is important for these is the 
formation of minute yet deep memory holes, which is 
possible with high-power plasma. In other words, the 
etching process is important. As a result, the etching device 
market is expanding, and we intend to supply ceramic 
material technology that can withstand high-power plasma. 
And in the logic market, demand for etching devices is also 
increasing as result of multi-patterning technology, which 
breaks down lines produced with a single exposure into 
even finer, multiple patterns. We plan to employ ceramic 
sheet lamination technology to contribute to technology for 
in-plane temperature homogenization, low particles, and 
wide-ranging surface temperatures.
The global market for oxygen treatment is expected to continue to expand as the population ages and the number of COPD sufferers 
increases, such that the projected size of the market in 2025 is 200 billion yen. In regional terms, the North American market is currently 
the biggest, and the number of patients is expected to continue rising, and we believe that demand for portable oxygen concentrators, 
in particular, will rise. And in the Chinese market, an increase in the number of people with COPD is expected to lead to higher demand 
for stationary oxygen concentrators, and the market is forecast to grow at a faster rate than the U.S. market.
Ceramic material technology that can 
withstand high-power plasma
Ceramic sheet lamination technology that 
contributes to surface temperature 
homogenization, low particles, and wide-
ranging surface temperatures
Outlook for semiconductor production equipment market
Ceramics
KGI (New Medium-term Management Plan)
Strength
35.0 billion yen
17%
Revenue
ROIC
KGI
External environment
External environment
Business Strategy
SPE
A lineup including portable and 
stationary oxygen concentrators
Sales channels around the world
KGI (New Medium-term Management Plan)
Strength
30.0 billion yen
13%
Revenue
Operating 
income 
ratio
KGI
Medical
Vision
Annual average growth 
rate of revenue: 
12% or more
Differentiation through 
proprietary technology 
that meets customer 
requirements
Labor productivity 
improvement:
improved by 30%
(compared to FY2020)
Establishment of 
production structure that is 
resilient to market changes
Inventory optimization, increase in 
capacity utilization rates, increase in 
labor productivity, etc. 
Vision
Launch of new 
products
(FY2024)
Development of new 
oxygen concentrators
Revenue from  
Chinese market
Annual average growth rate:
25% or more
Diversification of 
sales channels and 
sales regions
NGK SPARK PLUG CO., LTD. Integrated Report 2022
26
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction
Japan
Europe
China
North
America
Increase in COPD sufferers
Rising demand for stationary 
and portable models
High growth rate due to 
increase in COPD sufferers
200-billion-yen market in 2025
80
(USD billion)
60
40
20
0
FY2020
FY2023
FY2022
FY2021
FY2024
Assumes 
5% 
annual 
growth
Oxygen therapy 
needs on the rise
Looking ahead, we will be strengthening our development structure along with CAIRE Inc., which we acquired in FY2018, and plan to 
develop new stationary and portable oxygen concentrators, demand for which is expected to increase in the North American and 
Chinese markets in the future. As we expand sales globally, we are strengthening our sales capabilities in sales channels that are suited 
to expansion in the Chinese market and for the needs of each region.
To help improve the quality of life (QOL) of patients around the world, we aim to achieve growth by expanding our product line-up and 
our sales channels led by CAIRE.

Business Strategy
Ceramics
Looking back on the first year of the Medium-term Management Plan
95.5 billion yen
15.4%
Revenue
Operating 
income 
ratio
Revenue (billions of yen) and operating income ratio (%)
Outlook for FY2022
  SPE: We expect demand in the semiconductor production equipment component business to increase as investment in data centers 
and servers, 5G, and AI continues to grow and demand for semiconductors continues to rise. In these market conditions, by 
integrating the proprietary technologies of our Sendai and Komaki sites, and by continuing to implement fundamental reforms such 
as cost reductions and lead-time reductions through production innovation, we are looking to increase our share of the current 
businesses and also to increase sales and profit by enhancing our manufacturing capacity. Furthermore, in new product 
development, we aim to capture new demand through differentiated services by continuing to strengthen promotions to customer 
development departments with timely prototype support through the expansion of prototype and express lines.
  Medical: In the respiratory equipment-related business of the medical business, although demand for stationary home oxygen 
concentrators is expected to decrease as the situation of COVID-19 infection has started to subside, demand for portable oxygen 
concentrators is expected to increase as people will likely go out more often. As a result, revenue is expected to decrease slightly 
year on year. On the other hand, operating income is expected to decrease year on year, despite our plans to raise prices for 
customers and improve production efficiency, as we expect increases in costs due to soaring raw material and transportation costs 
as well as component supply issues and the resulting deterioration in production efficiency.
  Packages: In FY2022, demand for semiconductors remains strong as in the previous fiscal year, but the current situation is affected 
by the uncertain outlook for the situation in Russia and Ukraine and the sharp depreciation of the yen, which has caused raw material 
and fuel costs to rise. Therefore, we will continue to promote productivity improvement activities, as we did in the previous fiscal year, 
in order to secure profits. Because the semiconductor market is a growth area and is expected to continue to expand in the future, 
we will increase revenue in areas where we can take advantage of our strengths in ceramics.
  Cutting tool business: Cutting tools for the automobile industry are expected to perform well in conjunction with the recovery of 
production by automobile manufacturers, and cutting tools for the aircraft industry are expected to recover gradually from when 
engine parts production was affected by COVID-19. Revenue is expected to grow as a result. In addition to the increase in sales, we 
also expect an increase in profit due to cost reduction activities.
(Fiscal year)
2021
2022
 (Forecast)
15.4
95.5
112.7
13.5
Revenue 
composition
19.4%
  SPE: Against the backdrop of rapid digitization in society and the economy triggered by the global spread of COVID-19, e-commerce 
and social media use are increasing, leading to increased investment in data centers and servers, 5G, and AI. In these circumstances, 
the demand in the semiconductor production equipment market rose due to strong capital investment by semiconductor memory 
and logic manufacturers, which led to parts shortages and longer delivery times in various areas. However, the Group’s efforts to 
increase manufacturing capacity, such as by improving capacity utilization rates, resulted in a 28% year-on-year increase in revenue 
in the semiconductor production equipment components business, significantly exceeding the previous year’s results.
  Medical: Revenue was almost on a par with the previous year’s figure, increasing 4% year on year. Up until the third quarter, high 
demand continued for oxygen concentrators for home treatment use due to the resurgence of COVID-19. In the fourth quarter, 
although the situation of COVID-19 infection began to subside to a certain extent, revenue landed at a high level on a par with the 
previous year’s results. In the medical equipment field, we terminated the capital and business alliance agreement with Japan Medical 
Dynamic Marketing, INC., with whom we had been collaborating in areas such as joint product development and utilization of sales 
channels. As a result, we transferred all of our shares in Japan Medical Dynamic Marketing, INC., and a gain on sales of 
approximately 8.5 billion yen was recorded in the fiscal year ended March 31, 2022. This resulted in a significant one-time increase in 
operating income.
  Packages: The semiconductor industry as a whole is very active, including for data centers, due to the stay-at-home demand 
caused by COVID-19. Driven by this, demand for our semiconductor packages has also been strong. In addition, the effects of 
productivity improvement activities that have been underway since FY2020 have contributed to higher sales and profits in the 
semiconductor package business year on year.
  Cutting tool business: Cutting tools for the automotive and aircraft industries improved after being impacted by COVID-19, resulting 
in a 23% increase in revenue year on year. Sales of ceramic and cemented carbide products to these industries increased, especially 
in the Japanese, European, and U.S. markets. Sales to the aircraft industry are still in the process of recovery, but steadily increasing.
Overview of FY2021
Construction of a new plant to meet growing demand for semiconductors
Demand for semiconductors is increasing against the backdrop of the rapid digitization of 
society and the economy. In order to increase its ability to meet semiconductor demand, NTK 
CERATEC CO., LTD., a member of the NGK SPARK PLUG Group, has acquired a site in the 
Takayashiki Nishi district of Tomiya City, Miyagi Prefecture, to construct a new plant. The new 
plant will manufacture electro-static chucks, structural ceramics products, and other products, 
aiming to realize highly efficient and high-quality manufacturing by optimizing the production 
lines. The new plant will cover an area of approximately 12.4 hectares and is scheduled to start 
operation in April 2025 as the main plant of NTK CERATEC.
TOPICS
NGK SPARK PLUG CO., LTD. Integrated Report 2022
27
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Progress of New Business Creation and Future Prospects
Toru Matsui
Representative Director, Member of the 
Board, Executive Vice President, Assistant 
to President
Mirai Creation M&A Dept., R&D Div., and 
Business Creation Company
We will contribute to the 
harmonious coexistence 
of humans, the Earth, 
and the universe
Future vision of new business creation
What should our new business creation look like as we look 
toward our 2040 Vision, which defines “changing drastically 
beyond the current way” as our future direction? Discussions 
were held to create a stronger and more concrete image of our 
business in 2040 and to draw a roadmap toward this vision. The 
task force team members thought freely from perspectives not 
bound by conventional frameworks, and through repeated 
exchanges of opinions, arrived at a vision of how businesses 
should support people’s living environment in a future society and 
contribute to its maintenance and development.
In a future where people will migrate to outer space and to the 
moon’s surface beyond the Earth, it is likely that a regenerative 
circulatory system that circulates water, air, food, and energy, 
keeps them clean and generates no waste, will be realized as the 
living environment there. Assuming that by 2040, something 
similar to a regenerative circulatory system will be introduced to 
the general living environment on the Earth to avoid further 
burden on the global environment, we have set our contribution 
toward the realization of such a world as an ideal to aim for.
When we think about what we should do and can do to help 
create new businesses in this direction, we realized that our 
technologies and products already had several elements that can 
contribute to a regenerative circulatory society. A major activity for 
the future will be to re-evaluate, evolve, and develop those 
elements from the perspective of a regenerative circulatory 
system that detects air, water, and energy, recovers and 
concentrates them, and transforms them into a different state.
However, it is difficult for us alone to accomplish the innovations 
required for a regenerative circulatory society. It is necessary to 
complement what we do not have or what we lack through M&As 
and collaboration with other companies, and build a structure 
that can provide more advanced solutions while enhancing 
synergies.
As the organizational reform to this end, we established the 
Mirai Creation M&A Dept. within the Global Strategy Division as of 
April 1, 2022. The Mirai Creation M&A Dept. will consolidate and 
accumulate knowledge, experience, and know-how related to 
M&A, which were previously dispersed throughout the company, 
as a knowledge base, and will engage in M&A toward business 
portfolio transformation. It will also have a second opinion function 
for M&As in current business areas. It can be said that this 
department plays an important role in facilitating our move toward 
the 2040 Vision.
Challenges of the Business Creation Company
Businesses classified as our new business pillars are broadly 
divided into two categories: the solid oxide fuel cell (SOFC) cell 
stack business, which has begun production at Group companies 
MORIMURA SOFC TECHNOLOGY Co., Ltd. and CECYLLS Co., 
Ltd., respectively, and various new businesses being developed 
by the Business Creation Company (BCC), which was established 
in April 2021. BCC is an in-house company renamed from the 
Global Innovation Division, which was established in April 2020 to 
consolidate the development of new business pillars other than 
the SOFC business, which had previously been undertaken by 
several divisions.
BCC has a shared awareness internally of its mission, which is 
to provide solutions that create a better quality of life for people 
around the world. Going forward, we would like to further refine 
the direction of future new business creation mentioned earlier 
with BCC, and create a situation where we can promote this 
direction together as one. Currently, BCC is developing its 
business in three main areas: Utilities (decentralized utilities), 
mainly in the environmental and energy fields; Smart Mobility, 
mainly in the mobility field; and Smart Health, mainly in the 
medical field.
As progress to date, in the Utilities area, we have launched two 
new products in 2021: the ozone gas generator Sumikaze and 
water quality sensing. The ozone gas generator Sumikaze has 
been developed as a product effective in combating infectious 
diseases, as it exerts an inhibitory effect on airborne bacteria, 
viruses, and odors. Water quality sensing is a technology for land-
based shrimp aquaculture that automatically measures ammonia 
and other substances in seawater, and we are continuing to build 
systems for further labor-saving and automation in the 
aquaculture business.
In the Smart Mobility field, in 2021 we launched Doctor Link, a 
smartphone app that provides preventive maintenance services 
connecting automobile maintenance shops and users.
In the Smart Health field, we launched SAMPO Touch, a health 
solution that sends photos of family members and grandchildren 
to a smartphone by holding the smartphone over a dedicated 
NFC tag* on the way to and from a walk, encouraging middle-
aged and elderly people to take a walk while at the same time 
providing a way for family members to keep an eye on them. In 
addition, we are steadily developing services related to femtech, 
which uses technology to solve women’s physical issues, 
including a service that uses multiple sensors to relieve the 
anxiety of pregnant women and a service that uses sensors to 
detect the movement of pelvic floor muscles after childbirth and 
inform whether pelvic floor muscle training is being performed 
appropriately. We are also working on a collaborative project for 
medical-related solutions through investments in two startup 
companies. Specifically, we are developing and marketing an 
affordable and easy-to-use therapeutic gas generation device 
and a device that uses low-temperature plasma to treat chronic 
wounds.
The BCC new business projects will continue to require up-
front investment for the time being, and their contribution to our 
business performance will be some time in the future. Meanwhile, 
we expect sales from the launch of solid oxide fuel cell (SOFC) 
cell stacks by Group companies MORIMURA SOFC 
TECHNOLOGY Co., Ltd. and CECYLLS Co., Ltd.
Transcending departmental barriers to create a 
collaborative system
The R&D Div. is expected to create inventions that will form the 
basis of core technologies, and its efforts from a medium- to 
long-term perspective have a different time horizon from those of 
BCC, which aims to quickly launch new businesses. For this 
reason, until now, the efforts of the R&D Group and BCC have 
not been very well coordinated, with each developing in a different 
direction. Going forward, however, we intend to strengthen 
cooperation between the R&D Group and BCC, and to promote 
development in a flexible and active manner while mutually 
stimulating each other. As a leading example, a cross-functional 
project team was formed with R&D members, BCC members, 
and members of the Production Engineering Company. In 
October last year, the team began developing a solution to 
synthesize CO2 recovered from gas furnaces and other sources in 
plants with hydrogen and reuse it as fuel.
Carbon neutrality is one of the key themes for the R&D Div. in 
FY2022, and we will devote our resources to this area, focusing 
on the development of elemental technologies to improve the 
efficiency of CO2 recovery and reuse in plants as mentioned 
above, as well as on research into functional materials for EV 
applications. We also plan to accelerate R&D activities through 
DX.
We look forward to your continued support as we go through 
changes and take on challenges going forward.
*NFC tag: A tag equipped with near field communication technology.
NGK SPARK PLUG CO., LTD. Integrated Report 2022
28
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Progress of New Business Creation and Future Prospects
Sei Kawamoto and Takanori Horiguchi
Mobility Business Dept.,
Business Creation Company
Examples of new business activities (1)
First attempt in the 
service field by leveraging 
the sales network
Taking on the challenge of entering the digital 
service field
Doctor Link is a preventive maintenance service developed for 
automobile maintenance shops. By attaching a dedicated device 
to a vehicle, the condition of the vehicle and the wear and tear of 
its parts can be checked through a smartphone app. This allows 
users to know the appropriate timing for maintenance, and 
allows maintenance shops to make persuasive maintenance 
proposals to users based on quantitative data. In addition to 
bringing a high level of convenience to users, the product will 
also make a significant contribution to maintenance shops in 
terms of strengthening relationships with users and improving 
operational efficiency.
It is a bold challenge for us to enter the completely new field of 
digital services. As the market environment surrounding us 
changes dramatically, we need to leverage our strengths while 
changing drastically beyond the current way in order to develop 
new business pillars. Therefore, we have focused on digital 
services that meet the needs of maintenance shops as a 
business that can leverage the strengths we have developed up 
until now and that is scalable for the future. We saw many 
opportunities in the automobile maintenance industry, a market 
worth more than 5 trillion yen annually and facing a variety of 
challenges in a changing market environment.
Strengths of the sales network and partnerships
Over the years, the Automotive Components Group has developed 
a commercial distribution network for the aftermarket, in which 
products are wholesaled to parts distributors in a wide area and 
from there sold to maintenance shops through parts dealers in 
various regions, who are secondary wholesalers. The distributors’ 
association, which has about 400 parts dealers as members, is 
able to approach about 80% of the more than 70,000 
maintenance shops in Japan. The breadth of this network and 
the partnerships with local parts dealers are two major strengths 
that no other company has.
In the start-up phase survey, we visited dozens of maintenance 
shops through the introduction of parts dealers affiliated with the 
distributors’ association, and conducted a questionnaire survey 
of approximately 1,000 users and 200 maintenance shops. The 
survey results highlighted issues that maintenance shops and 
users were facing, and we came up with the idea of digital 
service solutions that would connect both parties with keywords 
such as peace of mind, trust, and satisfaction.
The development of Doctor Link was our first challenge in 
creating a service as a company that had specialized in 
manufacturing. We had to establish an operation system groping 
our way, and there were several times when we ran into 
obstacles. Although it also took time to establish technologies to 
provide solid value, such as linking dedicated devices and 
smartphone apps, we were able to successfully launch the 
service in November 2021.
Forming a large business group with digital 
services
To expand sales of Doctor Link to maintenance shops, we are 
currently holding seminars for parts distributors in a wide area 
and local parts dealers to communicate the value of introducing 
the service, and are actively developing a website to demonstrate 
the service and its usage in an easy-to-understand manner to 
increase awareness among users and maintenance shops. 
Through such sales and marketing activities, we will incorporate 
market feedback and continue to add functions and make 
improvements to meet the needs of our customers.
In the future, we would like to introduce Doctor Link to 6,000 
maintenance shops. However, we do not intend to specialize in 
this area, but rather to expand the range of our services through 
future development. We are also looking to create new value by 
utilizing the data obtained from vehicles with Doctor Link, and 
our goal is to form a large business group with these services.
In addition, we have established a network of sales channels 
to local maintenance shops in regions across the world, and we 
would like to consider the possibility of providing digital services 
including Doctor Link in the same way as we do in Japan in 
these regions.
Seiji Oya
Utility Business Dept.,
Business Creation Company
Examples of new business activities (2)
Developing new markets 
by considering the ways 
to provide value
Application of exhaust gas detection technology 
to shrimp aquaculture
We have developed a water quality monitoring system utilizing 
water quality sensing technology for land-based whiteleg shrimp 
aquaculture facilities and began marketing the system in 
November 2021. This system utilizes the technology (structural 
design, reliability design, etc.) cultivated through the development 
of exhaust gas oxygen sensors, one of our core businesses, to 
automatically measure nitrogenous components such as 
ammonia, which is harmful to marine products in seawater, and 
visualize water quality information.
Land-based aquaculture with qualified management of water 
quality enables the provision of safe and secure marine products 
without the use of chemicals, and contributes to addressing 
social challenges such as the depletion of marine resources due 
to overfishing and the resulting tight supply and demand of 
protein sources, as well as environmental pollution caused by 
offshore aquaculture. In particular, Japan relies on imports for 
more than 90% (220,000 tons) of its annual shrimp consumption, 
and the widespread use of land-based aquaculture is expected 
to eliminate future supply risks.
Learning aquaculture know-how and 
restructuring the value proposition
Sensing does not lead to much value by itself. We believe that 
the sensing technology we provide should include proposals for 
what to do and what to realize with the sensed information.
The water quality monitoring system developed this time 
automates ammonia detection, which is conventionally done 
manually in shrimp aquaculture, and visualizes water quality data. 
Although the value of this system is well understood by operators 
with experience in shrimp aquaculture, there are very few such 
existing operators. For this reason, we target operators who are 
considering new entry into land-based shrimp aquaculture. 
However, because they do not know how to utilize this system 
and how to improve the efficiency of their farming, it does not 
lead to value provision to our customers. Having gained an 
understanding of this situation through interviews with the target 
audience, we are working to rebuild our value proposition by 
starting with learning aquaculture know-how ourselves in order 
to be able to make post-sensing proposals regarding initiatives 
related to water quality monitoring systems.
As part of these efforts, we are currently developing the NTK 
Shrimp Aquaculture System, which combines a water quality 
monitoring system, an automatic feeding system, and an 
automatic water change system. Of the three major elements of 
aquaculture operations, namely, feeding, water change, and 
cleaning, the new system will save labor in feeding and water 
change. Going forward, we will accumulate more aquaculture 
know-how and reflect it in the development of the system to 
further reduce labor, thereby raising the value of the system to a 
level where even newcomers to the shrimp aquaculture industry 
can farm shrimp after receiving short-term training.
We hope to promote similar operational reforms for primary 
industry-type aquaculture businesses, which lag behind in 
quantification, labor saving, and systemization, by leveraging the 
assets we have cultivated in the secondary industry, thereby 
transforming them into highly sustainable businesses. We 
recognize that this is a solution to a problem that only we can 
solve with our deep experience in the secondary industry and 
that it is also our social responsibility.
Technology with potential for expanding various 
possibilities
As a new development in water quality sensing, we are currently 
developing a system that not only detects nitrogenous 
components such as ammonia, but also measures other 
parameters to determine the state of shrimp growth and link this 
to a labor-saving system to further improve the efficiency of 
aquaculture operations.
In addition, we have an internal team that is developing a 
seawater filtration system, and if a filtration system for 
aquaculture is realized there, it will be possible to construct a 
fully circulating land-based aquaculture system. This would make 
it possible to conduct aquaculture business not only in coastal 
areas where seawater is abundant, but also in inland areas, 
making the U.S. market, which is the world’s second largest 
shrimp consumer but where aquaculture has not been 
promoted, a future target.
Another perspective is to focus on nutrients contained in 
wastewater from shrimp aquaculture systems. If these nutrients 
are used as fertilizer for hydroponic cultivation of vegetables, the 
clean water from the system can be circulated for shrimp 
aquaculture again.
In this way, water quality sensing has a wide range of potential, 
and we believe that by firmly establishing a scheme for providing 
value, we can expect significant growth.
Land-based aquaculture technology “water quality sensing”
Automobile preventive maintenance service “Doctor Link”
NGK SPARK PLUG CO., LTD. Integrated Report 2022
29
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

6,303
3,286
3,017
6,482
3,298
3,184
6,478
3,344
3,134
2,000
4,000
0
8,000
6,000
(Number of reports)
6,773
3,447
3,326
2019
2020
2018
2017
2021 (Fiscal year)
6,255
3,228
3,027
In Japan
Outside Japan
Progress of New Business Creation and Future Prospects
Among the new business pillars that we are focusing on, the fuel cell business is currently the largest in scale and is expected to 
contribute to a sustainable society. Solid oxide fuel cells (SOFCs), which have particularly high power generation efficiency and can 
efficiently use a wide variety of fuels, are expected to see further diffusion and growth in Japan and overseas in response to the 
accelerating trend toward decarbonization.
MORIMURA SOFC TECHNOLOGY Co., Ltd.*1 and CECYLLS Co., Ltd.*2 have launched a business strategy for cell stacks that are 
key components of SOFCs to develop a full lineup of SOFCs for residential, commercial, and industrial use in the fuel cell market.
*1: Joint venture by five companies: Noritake Co., Limited, TOTO Ltd., NGK Insulators, Ltd., Morimura Bros., Inc., and NGK SPARK PLUG
*2: A joint venture by Mitsubishi Heavy Industries, Ltd. and NGK SPARK PLUG
The development of SOFCs for residential and commercial use targeting the Japanese market is pursuing smaller, lighter, and cheaper 
products by leveraging their ultra-high efficiency potential and high degree of design freedom. On the other hand, industrial-use SOFCs 
are targeted at the North American, European, and Korean markets, where we plan to demonstrate our superiority in life-cycle costs, 
such as long life and high heat utilization.
In March 2021, MORIMURA SOFC TECHNOLOGY Co., Ltd. launched mass production of SOFCs for commercial and industrial use 
that realized simultaneously reducing size and weight and high power density and achieved lower cost. Going forward, we plan to 
expand the adoption of SOFC in various forms, including for residential use. Meanwhile, CECYLLS Co., Ltd. started mass production of 
SOFC cell stacks for high-power fuel cell systems in August 2021.
The Group will continue to develop next-generation stacks and at the same time, will consider investments for business expansion to 
prepare for the full-scale orders expected in the future. The fuel cell market is expected to grow to 200 billion yen in the fiscal year 
ending March 31, 2030, and the Group intends to acquire sales of 45 billion yen in this market.
To step up the creation of new business pillars, we 
believe that it is essential to cooperate with startups that 
possess leading-edge technologies, business models, 
and ideas, so along with Pegasus Tech Ventures, in April 
2021 we set up a CVC (corporate venture capital) fund 
for the purpose of investing in startups around the world. 
In the first fiscal year, we made small investments in three 
venture companies that fit our strategy out of the many 
venture companies listed through sourcing. We will 
continue to be ramping up the creation of new business 
pillars through the provision of cash to and the forging of 
business alliances with startups from countries all over 
the world that possess advanced technology.
We have traditionally been investing in such startups 
indirectly through venture capital firms, and have 
established a network comprising numerous partners. 
Yet when we began actually collaborating with them, we 
realized we had issues with skills that are necessary, 
such as those related to coordinating activities with 
companies, making investments, and pursuing M&A. But 
this new CVC fund will not only help to further increase 
our network of startups, but will also allow us to make up 
for our weaknesses on the skills side. We have therefore 
completed the establishment of an investment structure 
for new business pillars. From now on, we will accelerate 
the creation of new business pillars as we press forward 
with investments that are in line with our strategy.
Small equity stakes
M&A
Expected no. of transactions Approx. five each year
Stages targeted 
Seed capital to Series A funding
Sizes of equity stakes 
 Several tens of millions of yen to several hundreds of 
million yen, 10 billion yen over six years
Investment criteria 
  The startup matches our portfolio of new business 
pillars, the business domain targeted is broad, the 
business has potential, and there is a vision for the 
business
 
  There is a high degree of affinity with our new 
business pillars, and the startup possesses a 
business, technology, and human resources that 
will complement/expand our portfolio
 
  The startup possesses technology, intellectual 
property, and skilled people or teams of the like we 
are lacking as we endeavor to establish our new 
business pillars
Stages targeted 
From Series A funding and onwards
Sizes of equity stakes 
50 billion yen over four years
Purpose of investment 
  To acquire a business, technology, intellectual 
property, customer base, or human resources that 
matches, complements, and expands our portfolio 
of new business pillars
  To acquire technology, intellectual property, a 
customer base, or skilled human resources of the 
like we are lacking for our portfolio of new business 
pillars or for our projects
  To expand our business portfolio and achieve 
rapid commercialization in business domains with 
a high degree of affinity with our projects
SOFC rollout
Residential use
Commercial use
Industrial use
0.7-2kW
2-10kW
20-100kW
100kW or more
For both 
companies, CO2 
reduction effect 
of approximately 
30% in relation 
to grid power
Fuel cell business strategy
Establishment of CVC fund to accelerate creation of new business pillars
One of the major strategic pillars of our Long-term Management Plan is the transformation of our business portfolio. We are promoting 
various measures for the tasks, positioning intellectual property activities as an important element in this management strategy.
We appropriately create, protect, manage, and utilize intellectual property in close coordination with related departments, 
internal companies, and Group companies, under our policy to honor intellectual property including patents, designs, 
trademarks, copyrights, and trade secrets.
Action 
Guidelines
Our policy for intellectual property
Intellectual Property
  Create intellectual property, aiming to further improve our corporate value.
  Honor intellectual property rights of third parties.
  Comply with laws and regulations regarding intellectual property in individual countries.
Intellectual property activities according to the management strategy outlined in the 2030 Long-term Management Plan “NITTOKU BX”
Intellectual property activities by business field
Current businesses
In our current businesses, which are the pillars of our earnings, we 
aim to secure a competitive advantage through IP mix activities that 
protect our technologies and know-how in multiple aspects, and 
continue to contribute to maximizing profitability.
Source: Created from LexisNexis PatentSight
The Patent Asset Index of LexisNexis
® PatentSight
® is used for the evaluation. The Patent Asset 
Index is an index that comprehensively takes into account the technology perspective, market 
perspective, and number of patent applications and rights with valid legal status (pending applications 
and patents that have been granted).
Growth businesses
Based on the intellectual property activities of current businesses, we aim to support business execution and growth from an intellectual 
property perspective by building a patent network and conducting clearance activities to investigate infringement of third-party 
intellectual property rights.
New businesses
The number of patent application publications in new business areas has increased over 
the past three years. We are also pursuing patent applications overseas in anticipation of 
future business development. In the future, we will promote efforts to shorten the 
business creation cycle by utilizing an IP landscape* as one of the materials for 
consideration at the initial stage of business creation, together with the Business Creation 
Company, which is in charge of creation of new business pillars.
* IP landscape: Analysis that incorporates IP information into management and business information when 
formulating management and business strategies, and sharing the results (including a bird’s-eye view of the 
current situation and future prospects) with management and business managers.
Patent asset index for spark plugs (comparison with competitors with our company as 100)
Number of patents held
1.  Protect new technologies and inventions from the initial stage of development to the mass-production stage, and create intellectual property.
2. Search patents utilizing AI, and deploy high-value-added patent information within a company.
3. Negotiate and manage complicated contract clauses regarding intellectual property based on legal knowledge.
4.  Protect our brands, and detect and eliminate counterfeit goods, in coordination with customs offices and government agencies of the 
countries throughout the world.
5. Develop regulations and management rules which comply with laws and regulations of individual countries.
6.  Lay the groundwork for the promotion of efficient intellectual property strategy, such as response to DX, compliance with working styles that 
meet the needs of the times, and remote work.
Examples of intellectual property mix activities
  Defense with a superiority patent portfolio
  Brand protection by detecting and eliminating counterfeit products
  Defense through know-how secrecy
NGK Spark Plug
Average 3 major
companies
Patent Asset Index TM(2021)
0
50
100
150
Trends in the ratio of the number of published 
patent applications related to new business 
pillars in the past three years (Total is 100%)
20
15
10
0
30
25
(%)
(Fiscal year)
2019
2020
2021
5
* Current businesses are related to the Automotive Components Group, growth 
businesses include business related to components for semiconductor production 
equipment and respiratory-related business, and new business pillars are related to the 
focus areas of Smart Health, Utilities, and Smart Mobility, as well as fuel cell business.
Partner: 
Pegasus Tech Ventures
NGK SPARK PLUG CO., LTD. Integrated Report 2022
30
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

3
page 31 
Foundation for 
Value Creation
C O N T E N T S
32 Message from the Sustainability Officer
33 CSR and Sustainability Committee
34 Review of Materiality Activities
35 Environment / Responding to Climate Change
37 Human Capital Management
40 Respect for Human Rights
41 Outside Directors’ Roundtable Discussion
43 Corporate Governance
48 Information Security
49 Risk Management
50 Compliance
NGK SPARK PLUG CO., LTD. Integrated Report 2022
31

Message from the Sustainability Officer
Hiroyuki Maeda
Executive Officer
We will promote 
activities to solve social 
issues while pursuing 
“transformation beyond 
the current way”
Transformation of sustainability activities beyond 
the current way
Sustainability management, which aims at sustainable 
development of companies and enhancement of social value, has 
been attracting attention in recent years. Taking the environmental 
field as an example, as awareness of the global warming crisis 
grows around the world, the Japanese government declared in 
October 2020 that the country will achieve carbon neutrality by 
2050, and Japan is now steering toward a full-fledged carbon-
neutral society. In April 2022, I assumed the position of 
Sustainability Officer, and I am keenly aware that we are facing 
the tidal wave of major change.
Under these circumstances, if our activities do not go beyond 
the current framework, we will remain far from the goal of 
achieving our objectives. Because we are committed to “change 
drastically beyond the current way,” we will continue to pursue 
“transformation beyond the current way” in our sustainability 
activities as well.
Activities to resolve ESG issues under the Long-
term Management Plan
One of the “transformations beyond the current way” is a change 
in the way the CSR and Sustainability Committee operates. 
Previously, the committee was chaired by an internal director, but 
from FY2022, it has been chaired by an outside director and will 
engage in lively discussions, sometimes involving external 
experts.
The major approach of ESG-related activities is expressed in 
the eight issues identified as priority challenges in the 2030 Long-
term Management Plan “NITTOKU BX.” One of these challenges, 
responding to climate change, has been addressed by setting a 
target of reducing CO2 emissions by 30% from the 2018 level by 
2030. In addition, with regard to providing environmentally friendly 
products, we are focusing on the diffusion and expansion of 
environmentally friendly products that contribute to the realization 
of a zero-emission and recycling-oriented society.
Concerning corporate governance, we have transitioned to a 
company with the Audit and Supervisory Committee to further 
speed up management decision-making and execution.
In addition to the eight issues mentioned above, we have 
also established a working group to address human rights issues 
and have started activities since FY2022 to ensure that human 
rights are taken into consideration throughout the entire supply 
chain of the Group.
Group-wide initiatives to reduce CO2 emissions
As for the reduction of CO2 emissions mentioned above, it is 
important to make it a company-wide effort in the course of our 
manufacturing activities. Last year, we launched an internal 
carbon pricing system and an internal environmental fund in order 
to create a situation in which each and every employee, including 
those in the business departments that account for a large 
percentage of our CO2 emissions, is involved in reducing CO2 
emissions as a personal concern.
Under the internal carbon pricing system, when a business 
department (company) introduces equipment, it converts the CO2 
emitted during the use of the equipment into a monetary value 
and adds it to the equipment price when applying for the 
equipment. A carbon tax of 10,000 yen per ton of CO2 emitted is 
also imposed on CO2 emitted from within the company, and an 
internal environmental fund that accumulates the tax collected is 
used to subsidize investment in environmentally friendly 
equipment.
These systems were discussed and structured by the 
Sustainability Transformation (SX) Project, which includes 
directors and key business department personnel. Furthermore, 
the Sustainability Strategy Dept. has held dozens of briefing 
sessions and repeatedly explained the systems to promote 
understanding among managers and even staff in the field. 
Through this process, the importance of the initiatives has been 
understood by the business departments, and recently I feel that 
the mindset has changed to one of trying to use the fund’s money 
to promote environmentally friendly capital investment at as low a 
cost as possible.
Certifying environmentally friendly products and 
promoting them both internally and externally
Another pillar of our activities in the environmental field is the 
manufacture and dissemination of environmentally friendly 
products. We have been striving to improve environmental 
performance by developing products with enhanced functions to 
reduce exhaust gas emissions and improve fuel efficiency. In 
FY2021, we launched a system to certify products with 
particularly high environmental performance from the three 
perspectives of energy efficiency, resource conservation, and 
environmentally hazardous substances as Nittoku Green 
Products. In the first year of the project, eight products were 
certified, including precious metal plugs and wide range oxygen 
sensors. Through the operation of this system, we will make 
information on environmentally friendly products visible to the 
public, first of all, to promote awareness within the company and 
encourage development with a higher level of environmental 
awareness, and also externally, to make our stakeholders aware 
of our environmental contribution.
Envisioning a service that contributes to the 
realization of carbon neutrality
Furthermore, we envision carbon neutral as a service as a way to 
contribute to the reduction of CO2 emissions in the region. This is 
a cyclical system that collects CO2 emitted from factories and 
other sources and reacts it with hydrogen to produce methane 
gas, which is used as a power source to drive machinery. This 
system is provided as a service by integrating it with our specialty 
products and technologies. Although similar systems have been 
proposed in the gas and electric power industries, they require 
very large facilities. We aim to provide a relatively small, highly 
efficient service in a price range that is affordable to businesses 
that are not so large.
In order to realize this service, it is necessary to incorporate a 
variety of elemental technologies, and we are looking to 
collaborate with other companies. We will create the Hydrogen 
Forest in Komaki City, Aichi Prefecture, as a demonstration site 
for a recycling-based system, and accelerate our efforts toward 
its practical application.
Creating a workplace where diverse human 
resources can thrive and play active roles
In order to “change drastically and transform beyond the current 
way” as mentioned at the beginning, we must also change our 
human resource portfolio. What we are looking for now is people 
who can bring about transformation. Although we may hire such 
people from outside the company, we believe it is fundamental to 
develop them internally.
I also believe that change and transformation can only occur 
when human resources with diverse individualities coexist. One of 
our priority issues is to promote the recruitment of women, foreign 
nationals, and career professionals, and recently we have been 
focusing on the development of female managers in particular. In 
the Raise UP Program that we launched in 2019, several 
executives serve as mentors to support participants. In fact, I am 
one of the mentors, and I took on the role of mentor because I 
wanted female managers to always have a higher perspective. I 
actually feel that the awareness of the participants has improved 
as a result of the program.
Furthermore, we invite outside lecturers to hold annual 
lectures for executives, managers, and supervisors, aiming to 
give employees, regardless of gender, a diverse range of 
perspectives. Because many of our employees have limited 
opportunities to interact with people outside the company, we 
provide an opportunity for them to learn how society is advancing 
today by having lecturers introduce forward-looking examples.
The Group will work together in order to achieve 
the transformation
We conducted another employee satisfaction survey in FY2021, 
which resulted in a 46.6% satisfaction rate. This result indicates 
that there is still a gap in awareness between the management 
team and staff in the field.
We have a history of focusing on automotive-related spark 
plugs and sensors as our main products, and we are currently 
trying to transform our portfolio in anticipation of the future 
peaking out of the internal combustion engine market. However, 
even among our employees there is a lack of awareness of how 
we are working toward this goal. We need to make our 
employees more aware of our new business activities and their 
significance. Also, as was mentioned earlier, I believe that job 
satisfaction will improve if there is greater recognition of the fact 
that our products contribute to solving environmental issues.
However, we will not be able to move in the right direction if it 
is only something being promoted by senior management. It is 
essential that top management communicates management 
policies firmly, that managers deepen their understanding, and 
that managers convey the same thoughts and feelings as top 
management to their subordinates.
Recently, due to work style reforms and the response to the 
COVID-19 pandemic, people are spending less time working in 
the office. In order to eliminate communication loss arising from 
such circumstances, I encourage supervisors and subordinates 
to make time for dialogue and have one-on-one meetings.
We are committed to solving social issues and 
demonstrating the value of our existence
Since its establishment in 1936, the NGK SPARK PLUG Group 
has promoted its business activities while contributing to society 
by pursuing the possibilities of ceramics under our principles of 
“involvement by all” and “quality products,” which we believe are 
the foundation of Monozukuri (innovative and quality 
manufacturing).
Whether it is climate change or the depletion of oil resources, 
these issues have been pointed out for a long time, but recently 
they have emerged as issues that can impact the entire planet. 
Rather than standing still and turning our eyes away from these 
issues, we need to address them with sincerity, transform our 
own business models, and respond to them by involving other 
companies in collaboration with us. In pursuing such activities, 
we intend to firmly demonstrate the value of our existence.
NGK SPARK PLUG CO., LTD. Integrated Report 2022
32
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

CSR and Sustainability Committee
In June 2022, the General Meeting of Shareholders approved a change in the 
design of our organization to clarify the separation of management and execution, 
delegate authority, and strengthen governance. As a result, the CSR and 
Sustainability Committee will be positioned as an advisory committee to the 
Board of Directors. Director Takakura, the newly appointed chair of the 
committee, shared her thoughts.
We contribute to developing a sustainable society, thereby improving our corporate value.
 We build relations of trust with our stakeholders while making highly transparent decisions and actions.
 We co-create and provide new value to help solve social issues.
CSR and Sustainability Charter
Reducing negative impact to zero and the future beyond
Recently, many companies have come to share a common understanding that solving the various problems facing society, such 
as the risk of climate change and labor human rights issues, is one of the challenges facing companies. Many of the activities 
based on this common understanding can be described as activities to reduce the negative impact on society caused by 
corporate activities to zero. Even more recently, there has been a debate, especially in Europe, about how to recover from 
negative impacts after they have been reduced to zero.
I believe that we have reached a stage where we should take a long-term perspective on our overall sustainability activities, 
including the environment.
Mission and vision of the CSR and Sustainability Committee
Based on the mission and vision of the Medium-term Management Plan, this committee will consider and formulate a new 
mission and vision that adds a sustainability perspective to our activities.
In our deliberations, we first took the viewpoint that without a sustainability perspective, it will be difficult for both our 
business and organization to survive in the society of the future, and we looked back at our core competencies and management 
philosophy, and reaffirmed what we have valued, what is excellent, and what is good. With these elements at the core, we 
discuss what we can do to solve social issues in a rapidly changing society. The committee will fully discuss these issues and 
formulate measures in response after submitting them to the Board of Directors.
Fostering understanding and empathy for sustainability and making it a personal concern
In order to accelerate our sustainability activities, this committee is considering the CSR and Sustainability Committee Medium-
term Plan, an action plan for the next three years corresponding to the period covered by the Medium-term Management Plan.
In the first year, we will focus on fostering understanding and empathy for sustainability, mainly within the company. Based 
on this, from the second year onward, each and every employee will voluntarily link sustainability to their work. This activity is 
making sustainability a personal concern. Based on these results, in the third year, we will integrate sustainability into our 
management plan and vision.
Transformation is possible only in an organization with a heightened sense of self-affirmation
For the Company, integrating sustainability into our management and business activities is a major transformation. The slogan of 
our Medium-term Management Plan is “Break to change. Change to create.” However, some of our stakeholders may be 
concerned that the good things that we had up to now may also be destroyed. It can also be said that because of the 
Company’s successful experience, there is reluctance to take on new challenges because of a fixation on best practices.
This process of transformation is not easy. What is important is to clearly identify the parts that can be destroyed and the 
parts that should be left behind, and to take on the challenges of the future. The parts that should be left behind are our core 
competence and management philosophy, the pride and sincerity of our employees, and the source of our desire to contribute 
to society through our work. I believe that transformation can be brought about only when we recognize these strengths of 
Nittoku anew and enhance our sense of self-esteem as an organization.
We will continue to pursue 
sustainability activities from a medium- to 
long-term perspective, while firmly 
protecting what should be valued. We hope 
that you, our stakeholders, will have high 
expectations for our future sustainability 
activities and support us in our efforts.
We are committed to delivering new value to people all over the world and contributing to society, as expressed in our corporate 
philosophy. This commitment is associated with our concept of sustainability, which is to help solve social issues through 
business activities.
In April 2020, we established the CSR and Sustainability Charter to present this concept more clearly and to communicate it 
widely both internally and externally. At the same time, we renamed our CSR Policy, which outlines the Group’s action guidelines 
for CSR, to the CSR Basic Policy.
Chiharu Takakura
Outside Director, Chair of the CSR and Sustainability Committee
CSR and
Sustainability Charter
CSR
Basic Policy
Corporate
Philosophy
Corporate
Code of
Conduct
Shared Values
Shikai-Keitei
Shisei-
Shinjitsu
Dokuritsu-
Jiei
Soshi-
Kantetsu
Basic Traits
Involvement
by all
Quality
products
Long-term
Management
Plan
Medium-term
Management
Plan
CSR and sustainability promotion system
  Risk Management Policy
  Compliance Policy
  Human Rights Policy
  Quality Policy
  Information Security 
Policy
  Procurement Policy
  Information Disclosure 
Policy
  Environmental Policy
  Human Resource Policy
  Occupational Health 
and Safety Policy
  Social Contribution 
Policy
  Tax Policy
The  
Nittoku Way
Risk Management
Committee
Compliance 
Committee
Quality 
Committee
Information Security
Committee
Environment 
Committee
Safety and Health
Committee
CSR and Sustainability Committee
Board of Directors
Sustainability Strategy Dept.
Reporting
Advising
The newly formed CSR and Sustainability Committee is positioned as an advisory committee to the Board of Directors and has 
two functions: to report and make recommendations in response to the Board of Directors’ advising, and to supervise each 
expert committee.
In discussions, external experts will be invited to enhance the knowledge and perspective of the committee, the 
management team, and the Group as a whole, and discussions will be held to promote sustainability management with a long-
term perspective.
Committee structure
Chair  Chiharu Takakura, Outside Director
Head of the Secretariat  Hiroyuki Maeda,  
Executive Officer (Officer in charge of Sustainability Strategy Dept.)
Secretariat  General Manager of Sustainability Strategy Dept. etc.
Committee member  Toru Matsui,  
Member of the Board, Executive Vice President
Committee member  Mikihiko Kato,  
Member of the Board, Standing Audit and Supervisory Committee Member
Sustainability activities will be pursued  
with the strengths of Nittoku at the core.
Guest committee 
members
Sustainability experts
(Each theme)
FY2022
FY2023
FY2024
Fostering 
understanding and 
empathy
Making it a personal 
concern
Incorporation into our business for the 
Long-term Management Plan and Vision
Integration of sustainability and  
economic rationality
 Lectures by external experts
 Executive training
  Sublimation of awards program
  Consider incorporating 
sustainability elements in the next 
Medium-term Management Plan
  Proposal for incorporating sustainability elements in 
the next Medium-term Management Plan
  Promote incorporation into our business for the  
Long-term Management Plan and Vision
NGK SPARK PLUG CO., LTD. Integrated Report 2022
33
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Review of Materiality Activities
We have identified eight priority issues (materiality) to be addressed in order to realize a sustainable society. 
See P.15
 
For these priority issues, we have defined major initiatives, targets, and outputs, and are carrying out activities from a medium- to 
long-term perspective. For FY2021, we have made progress as follows. We will continue to address these issues and contribute to 
the realization of a sustainable society.
Major Initiatives
Reduction of CO2 emissions
Goals and Outputs
CO2 emissions: 30% reduction  
from the FY2018 level by FY2030
Progress in FY2021
Reduced by 8.87% (265,100 tons)
Specific Activities
  We have introduced internal carbon pricing and an internal environmental fund as measures to promote the reduction of CO2 emissions.
  Each company set its own targets and promoted CO2 reduction activities.
  Obtained SBT certification for Scope 1, 2, and 3 reduction targets.
 Responding to climate change
Environment
Major Initiatives
Dissemination and expansion of 
environmentally friendly products
Goals and Outputs
 Sales ratio of precious metal plugs: at least 50%
 Sales ratio of wide range oxygen sensors: at least 50%
Progress in FY2021
 40%
 37%
Specific Activities
  Launched the environment-friendly product certification system. Products that meet the criteria will be certified as 
Nittoku Green Products. Eight products were certified in FY2021.
  Certified spark plugs with a precious metal (iridium alloy) center and ZFAS®-U3 wide range oxygen sensor as Nittoku 
Green Products.
 Providing environmentally friendly products
Environment
Major Initiatives
  Development of fuel cells
  Development of lead-free 
piezoelectric materials
 Development of sensing IoT business
  Carbon Neutral as a service
Goals and Outputs
  Dissemination of high-efficiency distributed power supply 
systems with an eye on the use of CO2-free hydrogen fuel
  Promoting substitution for lead-based piezoelectric materials
  Improving operational efficiency through 
automation, optimization and generalization
  Establishing and introducing a synthetic fuel 
(methane) production system
Progress in FY2021
 Established a production system for full-scale mass production of SOFC cell stacks
  Continued to introduce and propose lead-free piezoelectric materials
  Established a showroom for a water quality management system for land-based shrimp aquaculture, and continued 
to introduce and propose the system
  Completed feasibility verification of CO2 collection and hydrogen production technology
Specific Activities
   In order to improve the efficiency of production activities through integrated production from cells to stacks, the 
functions of the cell production process at the plant in Ise City, Mie Prefecture, will be consolidated to the plant in 
Komaki City, Aichi Prefecture, where the stack production process is located. The base consolidation began in 
FY2022, and operation will start in FY2023.
  Certified HPDS-6 series planar-type fuel cell E-specifications stacks as Nittoku Green Product.
   Exhibited and introduced lead-free piezoelectric materials at the Sustainable Materials Expo (held in December 2021).
  Certified lead-free piezoelectric ceramics as a Nittoku Green Product.
   Established a showroom and laboratory for a water quality management system for land-based shrimp aquaculture 
in Komaki City, Aichi Prefecture.
  Certified the water quality management system as a Nittoku Green Product.
  —
 Development of technologies, products, and businesses contributing to the resolution of social issues
Society
Major Initiatives
  Recruitment of female, foreign 
national and mid-career employees
 Development of new personnel system
Goals and Outputs
  Percentage of female/foreign national/mid-career 
employees in managerial posts: at least 25%
 Improved results of employee satisfaction surveys
Progress in FY2021
 17.0%
 Satisfaction level: 46.6% (response rate: 87.6%)
Specific Activities
   Implemented the Raise UP Program (selective female manager promotion training).
  Held a lecture for those in managerial positions on the theme of diversity to promote awareness-raising and 
education among managerial personnel.
   Held a briefing session on the new personnel system, and it was attended by all applicable employees.
  Held a briefing session for officers and general managers in order to utilize the results of the employee satisfaction 
surveys for workplace improvement.
 Global human resources management
Society
Major Initiatives
  Increasing the percentage of female 
and foreign national directors
  Increasing the percentage of 
outside directors
Goals and Outputs
  Percentage of female and foreign national directors: 
at least 30%
 Percentage of outside directors: at least one-third
Progress in FY2021
 45% (5 out of 11 directors)*
 64% (7 out of 11 directors)*
Specific Activities
  In order to achieve sustained growth and enhance corporate value over the medium to long term, the Board of Directors continues to 
be composed of a diverse group of people with different backgrounds in terms of expertise and experience.
  In order to strengthen the supervisory function of the Board of Directors and further ensure transparency in decision-making, the 
Company has transitioned to a company with an Audit and Supervisory Committee, and the majority of the Board of Directors is 
composed of outside directors.
 Corporate governance
Governance
Major Initiatives
Management of signs of serious 
incidents and prevention of their 
occurrence
Goals and Outputs
Establishing a risk management system that 
contributes to management decision making
Progress in FY2021
The risk map was updated by the Risk Management Committee
Specific Activities
  The Risk Management Committee met twice and updated the risk map.
  Risks that have been addressed were excluded from the priority risks in FY2021, and risks newly determined to be of 
high priority were added to the priority risks in FY2022.
 Risk management
Governance
Major Initiatives
Awareness surveys and continuous 
education for officers and employees
Goals and Outputs
Conducting compliance questionnaire surveys and 
disclosing the results
Progress in FY2021
Conducted compliance questionnaire surveys
Specific Activities
  Conducted compliance questionnaire surveys. Approximately 8,800 people were surveyed, for a response rate of 83%.
  We plan to identify divisions with issues based on the questionnaire results and conduct interviews with them.
 Compliance
Governance
Major Initiatives
Maintenance and enhancement of the 
incident response organization and 
establishment of a prevention system
Goals and Outputs
Establishing an information security management 
system
Progress in FY2021
Group companies in the U.S. and China obtained the TISAX certification (in Japan, the headquarters, related plants, and Group companies have already obtained the certification in FY2020).
Specific Activities
  The Information Security Committee met twice.
  Issued “CSIRT communication” to inform and educate employees about information security.
 Information security
Governance
*As of June 24, 2022
NGK SPARK PLUG CO., LTD. Integrated Report 2022
34
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Our group has a matrix-type structure including internal companies and respective regions, promoting environmental activities while 
having individual roles clarified. 
Each internal company manages its own targets on items relevant to business activities for the practice along with its business. 
Meanwhile, we conduct such activities as compliance of regulations, raising environmental awareness, and communication with local 
society mainly on the regional basis in accordance with action plans. Various working groups are set up as cross-functional teams 
across the internal companies for promoting activities.
The Central Environmental Committee, attended by President, directors, company presidents, regional environmental 
administrators, and heads of the working groups, confirms the progress toward the targets and issues in relation to each activity, for 
continuous improvement.
As a globally developing core manufacturing corporation, we aim to promote environmental conservation activities linked with 
corporate management maintaining a good balance with corporate growth, based on “Involvement by all” in order to 
contribute to the construction of a sustainable society.
Action 
Guidelines
Environmental Policy
Environment
  Through all of our business activities, we make particular efforts to reduce CO2 emissions toward a decarbonized society, conserve 
water resources, manage waste, and develop, offer and expand environmentally friendly products. 
  We strive to conserve the ecosystem through the control of chemical substances that place a burden on the environment.
  We strive to raise environmental awareness among our employees to ensure that they all positively participate in activities.
  We observe the laws, ordinances, and agreements concerning environmental conservation.
  We aim to substantiate information disclosure to stakeholders and communication activities, and also conduct activities for 
coexistence with the regional community.
  In order to achieve these targets, we will strive to make ongoing improvements to our environmental management system.
Central Environmental 
Committee Chairman
Environmental Administrator 
(President)
Chief Central Environmental 
Administrator
Each region
Regional environmental administrator
“Each region” refers to regions in 
Japan where the Headquarters, 
Komaki and Ise plants, and 
Group companies are located.
Environmental Committee
Company president
Divisions of each internal　
company
Internal companies
Head of the working group
Cross-divisional specialized task 
forces to carry out surveys and 
measures regarding energy 
conservation and hazardous 
substances management
Working groups
Internal Environmental
 Auditor
Environmental
 ISO Bureau
Central Environmental Committee
Promotion system
Recognizing the conservation of biodiversity as a critical global challenge, NGK SPARK PLUG Group identifies it as a material 
environmental issue for us to address, along with global warming mitigation and resources recycling. Based on this view, we established 
the NGK SPARK PLUG Group Biodiversity Action Guidelines in April 2013. Using the guidelines as a guide, we are working to remain 
aware of the fact that our activities, particularly involving energy and resource usage, are inevitably causing impacts on biodiversity, and 
are taking appropriate measures to reduce such impacts throughout our business operations, in cooperation with business partners and 
external groups.
Biodiversity conservation
Environmental activity promotion organizations
In July 2020, the NGK SPARK PLUG Group announced its support for the Task Force on 
Climate-related Financial Disclosures (TCFD) recommendations.
Based on the TCFD recommendations, we disclose important information related to 
climate change as outlined below.
Climate-related risks
With regard to climate-related risks, the sustainability department drafted the following risks according to the TCFD risk categories and  
discussed them with the director in charge of the sustainability department and related departments: risks related to the transition to a 
lower-carbon economy, which may emanate mainly in the course of a 2°C scenario; and risks related to the physical impacts of climate 
change, which may emanate under a 4°C scenario without achieving global targets for reducing CO2 emissions.
The three terms used below, “short term,” “medium term” and “long term,” have the following meanings:
 Endorsement of the TCFD recommendations (Corporate Management Committee in July 2020)
 Approval of the priority issue (materiality): “CO2 emissions: 30% reduction from the FY2018 level by FY2030” (CSR and Sustainability Committee in March 2020)
 Approval of “Eco Vision 2030” (Environmental Committee in March 2021)
 Approval of “Aiming for carbon neutrality in 2050” (CSR and Sustainability Committee in March 2021)
Examples of what was discussed and determined in terms of climate change
Short term
until around 2025 in line with the target year of our Medium-term Management Plan
Medium term
until around 2030 in line with the target year of our Long-term Management Plan
Long term
until around 2040 in line with the vison of our Long-term Management Plan
Our group is aware that climate change and other environmental issues are serious business issues.
Regarding the approach of management concerning climate change, the CSR and Sustainability Committee* (chaired by an outside 
director and meeting four times a year), an advisory body to the Board of Directors, compiles recommendations based on climate-
related risks and opportunities and reports to the Board of Directors, which then makes decisions on these recommendations.
In addition, the sustainability department reports to the CSR and Sustainability Committee on the progress of priority issues, 
including the response to climate change, which is then reviewed and monitored by the committee. For detailed activities including 
reduction of CO2 emissions, the Environmental Committee (twice a year) checks progress towards the targets and confirms issues to be 
addressed in order to make continuous improvement. Furthermore, risks associated with climate change are assessed in light of 
company-wide risk management at the Risk Management Committee (twice a year).
The CSR and Sustainability Committee is responsible for supervising the Environmental Committee, Risk Management Committee, 
and other specialized committees, and information on progress in reduction of CO2 emissions and risk assessment is also shared with 
the CSR and Sustainability Committee. In addition, important decisions made by each specialized committee are reported to the Board 
of Directors through the Corporate Management Committee, which deliberates, decides, and supervises important matters in the 
execution of business operations.
Main scenarios and projections used in the study
2°C scenario : IPCC RCP2.6, IEA ETP 2DS, etc.
4°C scenario : IPCC RCP8.5, IHS Markit Automotive “Mobility and Energy Future” service data, etc.
Governance
Strategy (risks & opportunities)
Responding to Climate Change
*In June 2022, we transitioned to a company with an Audit and Supervisory Committee and positioned the CSR and Sustainability Committee as an advisory body to the Board of Directors.
P.43 Corporate governance system chart
P.21 Eco Vision
NGK SPARK PLUG CO., LTD. Integrated Report 2022
35
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Risk item
Business impact (risk)
Assessment 
(impact)
Timing of the 
impact
Small Medium Large Short term Medium term Long term
2°C scenario
Risks related to 
the transition to 
a lower-carbon 
economy
Policy and legal
Carbon tax
 If a carbon tax is introduced, taxes levied on fuel will increase procurement costs, 
resulting in a rise in the costs of energy and raw materials.
Carbon border 
tax
 If a carbon border tax is introduced, taxes will be levied on products to be exported, 
resulting in the reduction in the cost competitiveness of the products.
Regulations 
on carbon 
emissions
 The achievement of GHG reduction targets will be required, resulting in increases 
in the costs of, for example, making capital investments and purchasing electricity 
generated from renewable energy sources.
Sale of gasoline-
powered vehicles
 In countries that ban the sale of gasoline-powered vehicles, OEM demand will 
disappear, resulting in a decrease in sales.
Technology
Proliferation of energy-
saving and renewable-
energy technologies
 The introduction of new energy-saving and renewable-energy technologies will 
increase the cost related to, for example, capital investments.
Development of 
new technologies
 Expenditures on the research and development of new technologies will increase.
Markets
Shift in 
customer 
preferences
 After the 2030s, the number of people who choose ZEVs even as used cars will 
increase, resulting in a decline in demand for spark plug replacement and eventually 
a decrease in sales.
 Products that emit less CO2 in their life cycle will be chosen, resulting in a decrease 
in the sales of conventional products.
Reputation
Shift in investor 
preferences
 Investors’ opinions will turn against internal combustion engines, resulting in 
divestments.
Shifts in job-seekers’ 
preferences
 Job seekers’ opinions will turn against internal combustion engines. Accordingly, job 
seekers will not choose us as their place to work.
4°C scenario
Risks related 
to the physical 
impacts of climate 
change
Acute
Increased severity 
of extreme 
weather events
 Typhoons and other extreme weather events will cause damage to plants and other 
facilities, resulting in shutdown or a decrease in production. Furthermore, additional costs 
will be incurred to restore equipment. Non-life insurance premiums will also increase.
Chronic
Sea level rise
 Rising sea levels will increase the risk of flooding and storm surges. Plants and 
transport infrastructure located in coastal areas will be damaged and supply chains 
will be broken, resulting in the extra costs of addressing these problems.
Changes in precipitation 
patterns and variability 
in weather patterns
 Plants in areas facing severe water shortage will be forced to shut or slow down 
operations due to limitations on water usage, resulting in the cost of shifting 
production to other plants, increased transportation costs and the like.
Rising mean 
temperatures
 Employees who work in extreme heat will frequently get heat stroke. To reduce their 
increased physical burden, the cost of dealing with extreme heat and labor costs will 
increase.
Climate-related opportunities
With regard to climate-related opportunities, we examined, according to the TCFD categories, opportunities for management reform to 
be accomplished through efforts to mitigate and adapt to climate change.
Aspect
Major opportunity
Resource efficiency
 The increasing adoption of new energy-saving and renewable-energy technologies will reduce energy costs.
Energy source
 The increased demand for hydrogen as a fuel exempt from carbon tax will provide new opportunities in the hydrogen energy market.
Products and services
 To conform to fuel efficiency regulations, demand for high value-added products will increase.
 The hydrogen energy market is expected to grow due to mandatory reduction of GHG emissions. Increased demand for hydrogen technologies and 
SOFCs will provide business opportunities.
 In disaster preparedness, local consumption of locally-produced energy (distributed power generation) will receive attention, resulting in increased 
demand for SOFCs.
Markets
 The development of new climate-related technologies that meet social needs will provide business opportunities.
Resilience
 In disaster preparedness, the continuous reinforcement of the BCM and BCP of our group, including our supply chain, will help enhance our 
resilience.
Business risks, opportunities and responses under the climate-related scenarios
To further clarify climate-related risks and opportunities, we examined business environments and responses by business type under 
both 2°C and 4°C scenarios.
As a result of our examination, no existential impact from physical risks has been identified.
With regard to our business related to internal combustion engines, whose sales revenue makes up 80% of the total at present, we 
are facing a major change. On the other hand, geared toward the realization of a decarbonized society, hydrogen-related and other new 
needs and markets are expected to arise. Therefore, in the 2030 Long-term Management Plan “NITTOKU BX,” we take up 
“Environment & Energy” as one of the business fields to focus on. Toward 2040, we will push forward with the transformation of our 
business portfolio (40% ICE business, 60% non-ICE business).
Examined business
Product
Responses to future business risks and opportunities
Financial impact
Revenue target 
in our Long-term 
Management Plan
Automotive 
Components 
Group
Spark plugs,  
Glow plugs,  
Sensors
 Under a 2°C scenario , sales of internal combustion engine parts are 
expected to decline in the future due to stricter regulations on vehicles 
with internal combustion engines. On the other hand, opportunities will 
arise in the electric vehicle market and other new markets.
 Under a 4°C scenario , further energy conservation and toxic-gas-
emission control will be required in terms of internal combustion 
engines. Therefore, we will take measures to improve the performance 
of internal combustion engine parts.
Impact on part of the 
revenue of 387.8 billion yen 
(FY2021)
450 billion yen
(FY2029)
Fuel cell 
business
Fuel cells
 Under either a 2°C  or 4°C scenario, demand for non-fossil energy 
sources is expected to grow. Therefore, we will continue to enhance 
our measures taken in the relevant markets.
 Under a 2°C scenario , the proliferation of hydrogen infrastructure is 
expected. Therefore, the market may grow at an increasing rate.
Impact on part of the 
revenue of 106 billion yen 
(FY2021)
300 billion yen
(FY2029)
Other 
businesses
SPE, packages, oxygen 
concentrators, cutting 
tools, bearing balls, etc.
 Under either a 2°C  or 4°C scenario, the impact on risks and 
opportunities is small.
  For the Automotive Components Group, under the 2°C scenario, sales are expected to decline in the future due to stricter regulations. Therefore, 
the transformation of our business portfolio is required.
  For other business types, under either a 2°C or 4°C scenario, we will conduct business flexibly and strategically while keeping a close watch on 
market trends. Thus, we have high resilience in terms of both medium- and long-term perspectives.
Conducting business globally in many fields, our group faces various risks and opportunities in each type of business. Therefore, we 
grasp and respond to risks and opportunities on a business company basis. The risks and opportunities related to climate change are 
also being addressed by closely monitoring regulatory trends and assessing their respective impacts on business.
The Risk Management Committee evaluates risks from a company-wide perspective by analyzing their impact, likelihood of occur-
rence, and status of countermeasures to determine whether or not they will have a significant impact on our business activities. Risks 
evaluated as significant are designated as priority risks and the departments in charge of the risks are selected, and the Risk Manage-
ment Committee confirms the status of mitigation activities.
Meanwhile, the CSR and Sustainability Committee checks key opportunities. The Committee incorporates, when necessary, these 
opportunities into our management strategy and priority issues (materiality).
In the 2030 Long-term Management Plan “NITTOKU BX,” which was announced in May 2020, our group has set the goal: “CO2 
emissions: 30% reduction from the FY2018 level by FY2030.”
Meanwhile, to enhance environmental conservation activities from a long-term perspective, we formulated Eco Vision 2030 in April 
2021. It stipulates the achievement of carbon neutrality by 2050 as a long-term goal.
In order to further promote CO2 emission reductions toward achieving these targets, we have set the CO2 emission reduction rate 
as one of the evaluation indicators in the performance-linked stock remuneration system for directors (excluding directors who are Audit 
and Supervisory Committee Members and outside directors) and corporate officers (excluding employment-type corporate officers). In 
addition, the Group has introduced internal carbon pricing (ICP) 
to promote Group-wide efforts to reduce CO2 emissions. We 
collect 10,000 yen per ton of CO2 emissions from emission 
departments and use the collected amount as an internal 
environmental fund to support investment and infrastructure 
development for decarbonization.
Furthermore, we are also working to reduce CO2 emissions 
throughout the supply chain. We ask our business partners 
(suppliers) to set a target for reducing CO2 emissions and work 
toward achieving the target. We also offer support for them as 
deemed appropriate.
Risk management
Metrics and targets
Responding to Climate Change
P.49 Risk Management
CO2 reduction targets and results
Items
Target
Results
Scope 1 and 2
30% reduction from the 
FY2018 level by 
FY2030
Reduced by 8.87% from 
the FY2018 level in FY2021
[Emissions: 265,100 tons]
Scope 3
Category 1 Purchased goods and 
services
Part of Category 4 Transportation 
and delivery (upstream)
Category 11 Use of sold goods
30% reduction from the 
FY2018 level by 
FY2030
Increased by 1.45% 
from the FY2018 level 
in FY2021
[Emissions: 11.23 million tons]
* The above CO2 reduction targets were certified as well-below 2°C (WB2°C) targets by the SBT 
Initiative in June 2022 as science-based targets (SBT).
NGK SPARK PLUG CO., LTD. Integrated Report 2022
36
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

In our Long-term Management Plan “NITTOKU BX,” we have set “Beyond ceramics, eXceeding imagination” as our vision for 2040. The 
core message of this vision is to be a company that coexists with a diverse range of human resources with aspirations. We are not only 
concerned with “What ceramics can do,” but also with the acquisition and development of diverse and autonomous employees as a 
management strategy to take on challenges beyond the realm of ceramics and beyond the world and our own imagination.
Specifically, in January 2021, we announced the Work Style Reform Declaration to promote diverse work styles, and in April of the 
same year, we introduced an in-house company system and spun off some businesses. In addition to clarifying the responsibilities and 
authority of each business and individual, we have created an environment that facilitates the individuality and characteristics of each 
business. Some companies are operating a system to identify the individuality and abilities of employees and match them with jobs in 
their fields of interest. In addition, we continue to focus on the development of the younger generation through the HAGI Program for 
developing the next generation of managerial human resources and the Raise UP Program, which promotes the advancement of 
women. Looking outside the company, we are actively promoting open innovation such as the Venture Lab*, which is intended to 
connect with industry, government, academia, or overseas advanced technologies and their groups.
In terms of human resource diversity, the Group has set numerical targets of 25% women, foreign nationals, and career hires in 
managerial posts and 30% or more women and foreign nationals on the Board of Directors by 2030. At the end of FY2021, the former 
is 17% and the latter is 18%. These indicators are not set with the intention of focusing solely on gender or nationality. We are 
committed as a management team to making efforts to create an organization that embraces and makes the most of the colorful 
individuality and characteristics of our employees.
Furthermore, in April 2022, the personnel system has undergone a major change. In order to accelerate the creation of self-
disciplined creative human resources who can realize the themes of the Medium-term Management Plan, “Break to change” and 
“Change to create,” we have incorporated the Group Human Resource Policy, which clearly defines the direction of human resource 
policies that the entire Group will pursue, and have created a highly fair personnel system that rewards achievements and challenges 
regardless of age or other backgrounds.
Also, we promote health and productivity management, believing that it is essential for the sustainable development of the Group 
that employees work in good physical and mental health. In addition to our annual employee satisfaction survey, we have introduced a 
quantitative indicator as a tool to visualize engagement that can be checked by line managers, along with the one-on-one meeting 
between superiors and subordinates, which have been introduced on a trial basis in FY2019. We have also introduced GOOD 
MORNING COLOR, developed by ignArt, a new company launched in 2020, and are actively working to improve workers’ self-care and 
workplace communication.
In order to combine different “knowledge” to achieve a future that is beyond the current way, the Nittoku Group will continue to 
work to promote diversity, equity, and inclusion as its management strategy.
We acknowledge that employees are the most important management resources. In light of this, we respect the diversity and 
individuality of our employees, making the most of our self-disciplined creative human resources and striving to promote the 
further development of our group as a whole.
Action 
Guidelines
Human Resource Policy
Human Capital Management
  We will develop human resources who have ambitions and are capable of taking action to change and transform (self-disciplined 
creative human resources), and create an environment in which they can play an active role.
  We will foster a corporate culture in which human resources with diverse personalities can demonstrate their abilities, and promote 
the placement of the right people in the right roles.
Approach to human capital management
Our human resources strategy focuses on how to develop and acquire the human resources needed to achieve the vision of our Long-
term Management Plan “NITTOKU BX” and our Medium-term Management Plan. We have defined the image of human resources we 
seek and are advancing a human resources strategy to bridge the gap between those human resources and current human resources.
In order to implement our management strategy and realize the transformation of our business portfolio, we seek to develop all of 
our employees into self-disciplined creative human resources who are able to work independently and create new ideas. Moreover, we 
select and develop managerial human resources from among these employees, and focus on developing specialist human resources 
who promote innovation and DX to respond to changes in the environment.
In addition, in order to develop self-disciplined creative human resources, we are building a system to confirm the voluntary will (Will) 
of employees and assign the right people in the right roles where they can work according to their Will. Furthermore, we will also work 
to improve the skills of our employees so that they can produce results in the places where they are assigned.
While supporting the further development of existing human resources in this way, we are also proactively seeking external specialist 
human resources to create technologies and new businesses that can respond to rapid changes in the environment. In addition, we 
have already created a database for global talent management and have a good understanding of human resources close to 
management, so we will shift our focus to how to effectively manage them.
The Human Resources Strategy Dept. will take the lead in implementing these measures to develop diverse and autonomous 
human resources and build a foundation for our sustainable growth.
Human Resources Strategy
Long-term Management Plan 
NITTOKU BX
Current 
human 
resources
Human resource policy, 
work style reforms, and 
diversity promotion
Talent
Management
Medium-term Management Plan
Realization of the transformation of 
the business portfolio
Identify gaps and  
transform our human 
resources portfolio
Establish medium- to long-term personnel plan
Image of 
human 
resources 
we seek
Human resources strategy
Restructuring of personnel system
Develop and create self-disciplined creative  
human resources
Develop managerial  
human resources
(HAGI*1, NBS*2)
Develop specialist  
human resources
(DX and innovation)
Allocate the right people in the right roles and improve their skills
Strategic recruitment
Further utilization of current human resources
Acquire external specialist human resources
*1 HAGI: Program to develop the next generation of global managerial human resources 
*2 NBS: Nittoku Business School
*Bases for creation of new business pillars in Silicon Valley, Tokyo, and Germany
NGK SPARK PLUG CO., LTD. Integrated Report 2022
37
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Employee skill enhancement and career development
We conduct a variety of training programs to improve the skills of our employees. In addition to level-specific training for promotion and 
specialized training participated voluntarily by employees to improve their own skills, we also offer a variety of programs such as training 
for manufacturing, which focuses on quality and other areas, to support employees’ career development.
In addition, we have a career consultation helpline where employees can consult with us about their daily work and career 
concerns. Employees certified as career consultants provide one-on-one counseling to employees who visit the counter to discuss their 
overall career concerns and work-related issues. The career consultants do not provide solutions but instead help the questioners find 
answers for themselves.
We are also working on My Career, a framework to help employees envision their future careers and think about the approach they 
want to take. This clarifies each employee’s Will (what kind of work he or she wants to do) and Can (what kind of work he or she is 
capable of doing). It is an opportunity for each employee to think about his or her own career, and if it is possible to match the indicated 
Will with the human resources being recruited at each company, we will consider arranging transfers and other measures.
Development and management of managerial human resources
As our business expand globally, in 2016, we started a program to find and develop the next generation of global managerial human 
resources, targeting all Group companies. This program is intended to facilitate the employment and promotion of candidates regardless 
of nationality and to provide them with opportunities and environments that allow them to demonstrate their abilities. It was named the 
“HAGI Program” after Hagi City in Yamaguchi Prefecture, where the Shoka Sonjuku school developed diverse human resources at the 
end of the Edo period. Chairman of the Board Shinichi Odo serves as the head of the program. Under the program, seminars have 
been held on a continuous basis to provide employees with opportunities to learn together with a focus on gaining practical knowledge 
from a company-wide perspective. We are thereby developing leaders with the will and sense of mission required to take the NGK 
SPARK PLUG Group into the future.
Targeting human resources in Japan, we run Nittoku Business School classes for employees who are almost qualified to participate 
in the HAGI Program. For these classes we have prepared a curriculum that helps participants develop logical thinking and acquire 
knowledge and skills regarding management strategies, marketing and presentations. It also includes case studies based on actual 
examples and is intended to help participants to develop the spirit, techniques and physical stamina required of leaders.
Employees who have completed the HAGI Program and the Nittoku Business School curriculum have already been making 
contributions in core positions within the Group. We have also established a selective human resources development program for each 
of North America, Europe, Asia and other regions and implement the program four times a year for the development of business 
leaders.
In addition, the Human Resources Committee, whose members consist of members of management, has been meeting once a 
month since FY2018 to discuss personnel matters for core positions within the Group.
Recruitment strategy
In terms of recruitment, in order to respond quickly to changes in the business environment, we aggressively pursue employment of 
mid-career personnel who can immediately take on a job effectively, mainly in the new business and IT departments.
We are also promoting the employment of foreign nationals in our effort to adapt to the rapid advancement of globalization and 
encourage diverse talent to play active roles. For new graduates, we have been employing around three to five foreign nationals every 
year, recently with a special focus on the employment of foreign nationals who have acquired not only Japanese language skills but also 
more specialized skills from overseas universities, in addition to those who have studied in Japan.
We are also conscious of increasing the ratio of female employees and the employment rate of people with disabilities. The 
inclusion of mid-career employees and foreign nationals in each workplace has helped increase our diversity awareness across the 
company.
New personnel system
Qualification system for core positions
In order for the NGK SPARK PLUG Group to achieve true “Dokuritsu-Jiei” (independent spirit), it is important to create self-disciplined 
creative human resources, who are strongly aware of his or her own role and is able to link it to his or her actions. Therefore, we have 
revised the existing personnel system to a new system aimed at creating self-disciplined creative human resources.
Under the new personnel system, self-discipline, creativity, achievement, and challenge have been newly added as evaluation 
elements common to the Group. The entire Group will work together to develop self-disciplined creative human resources who can 
realize the themes of the Medium-term Management Plan to “Break to change” and “Change to create.”
We have introduced a system in which employee compensation reflects the results produced by each company, and we expect 
each employee to be aware of the output that contributes to our business and performance, and to work in a more efficient manner.
A role grading system was introduced for core positions, and by setting role ranks and salaries according to the roles required, the 
system was changed so that the actual roles played by the employees and their compensation are aligned, regardless of their years of 
service. In addition, as core position human resources who contribute to the Company by utilizing their high level of expertise, we have 
established a qualification as specialist positions (SP positions) that are not limited to research positions. The M positions, the traditional 
managerial positions, will focus on management, while SP positions will concentrate on demonstrating their expertise to promote more 
efficient business operations. By further clarifying the roles of each individual, we will realize speedy innovation and the placement of the 
right people in the right roles to promote the achievement of organizational goals.
The reformed personnel system will be monitored for system evaluation and confirmation of retention status while conducting 
employee satisfaction surveys, and will be revised and refined as necessary in the future as well.
Employee satisfaction survey
The Group conducts employee satisfaction surveys for the following three purposes: (1) to understand employee motivation and sense 
of burden, (2) to understand the current status, verify the effectiveness, and consider measures for “Change (transformation) with (co-
existence) Will (will),” the Action Guidelines set forth in the Long-term Management Plan, and (3) to improve the workplace through 
examination of the results.
The survey results of each individual department are fed back to the departmental heads to notify them of the department’s 
situation and challenges indicated by the results. For items with low engagement, countermeasures are considered through exchanges 
of opinions within departments to improve workplaces, and in some cases, companies launch projects to proactively engage in such 
activities. The HR development department is also working to offer a better working environment for employees by identifying issues to 
be resolved through interviews with young employees at each workplace, and the employee satisfaction survey has become an 
important tool for reform.
The satisfaction rate in the FY2021 survey was 46.6%, almost unchanged from the previous year. The external environment 
surrounding the Group is changing rapidly, and the Group is in the midst of a period of major transformation, including the introduction 
of the in-house company system and spin-offs of some businesses. In order to improve employee engagement, we will not only 
continue to continuously disseminate information internally, but also invest in people and the work environment by reflecting the efforts 
of each company and individual in evaluations and compensation, and strive to improve the results of the employee satisfaction survey.
Core 
positions
Managerial positions (M positions)
Specialist positions (SP positions)
Functional qualifications
M1 
(advisor)
Rank 1
Fellows
Rank 4
SP3 
(supervising specialist position)
Rank 2
SP1 
(senior specialist position)
Rank 5
Rank 3
SP2 
(lead specialist position)
Rank 6
Rank 7
M2 
(supervisor)
SP positions  
do not have  
functional qualifications
Role grade
Role grade
Human Capital Management
Mid-career employment
10
20
Female
Male
0
40
30
(Number of employee)
30
8
26
30
9
3
2020
2021
2019
Fiscal year
New graduates employment
21.1
27
60
30
90
0
150
120
20
10
30
0
50
40
(Number of employee)
（％）
23.6
34.4
26
21
40
84
101
Female
Male
Percentage of female
2020
2021
2019
Fiscal year
Recruitment of foreign-national new graduates 
4
2
6
0
10
8
(Number of employee)
6
5
6
2020
2021
2019
Fiscal year
NGK SPARK PLUG CO., LTD. Integrated Report 2022
38
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

We consider diversity, equity, and inclusion to be one of our most important management strategies as we believe that diversity, 
equity, and inclusion are essential for companies to attain sound growth and ensure happiness for all employees. We strive to 
recognize and accept diverse human resources regardless of gender, age, disability, nationality, as well as lifestyle and personality, 
and to provide each with the best support and opportunities in a fair manner. We utilize new values and ideas coming from an 
employee-friendly workplace that accepts such people by combining different “knowledge.”*
*Combining different “knowledge” means combining human resources with different attributes, values or ideas.
High level of 
distrust
Communication 
errors
Gap in stress 
levels
Diversity, equity, and inclusion (DE&I)
Initiatives to promote DE&I
Since 2013, as our first step toward diversity promotion, we have been putting effort in creating working environment across the 
company where women can truly thrive and play active roles. We are trying to change the mindset of both managers and female 
employees themselves, regarding the empowerment of women as a driver for the reform of our corporate culture.
This is a selective training program for female employees whose next stage of growth will be managerial positions, to acquire the knowledge, 
skills, and attitude required to become what they want to be. The program embraces the concept “one step forward in a resilient manner while 
staying true to oneself,” and the first word in the name of the program represents the components that make up the concept: Resilient, Active, I 
(true to oneself), Smart, and Exceed (one step forward). We have appointed several executives as advisory board members for the program, 
providing opportunities for trainees to voluntarily seek advice and support for their efforts in the program, and acquire multiple mentors. Trainees 
will gain the perspective required of managers, and at the end of the training, they will give a presentation in front of the chairman and president. 
Through the training, we help trainees get ready to become managers and to take on challenges with confidence.
Raise UP Program (selective female manager promotion training)
State of no diversity
State in which diversity reduces productivity
Assimilation
Exclusion
We hold annual lectures on diversity for executives, managers, and section chiefs, by inviting prominent outside lecturers. By providing 
opportunities to acquire knowledge of advanced cases, we help participants change the way they think and raise awareness while spreading 
the significance of promoting diversity.
Lectures for those in core positions
The name of this training, “mimi-tako (MT),” is derived from a Japanese phrase meaning “hear enough.” To raise managers’ awareness, the MT 
training is held repeatedly under the themes of, for example, diversity, the Nittoku Way, and compliance to the extent that trainees feel they have 
heard enough.
MT training (mimi-tako training)
In 2019, taking over the achievements of the DIAMOND Project implemented up to FY2017, the Diversity Team has taken the lead in 
launching the Raise UP Program to accelerate the increase in the percentage of women in managerial positions. The program will 
provide training for approximately six months for a small group of female manager candidates. Upon completion of the training, trainees 
will take a promotion examination like other candidates for promotion, and if they pass the examination, they will be promoted to 
managerial posts.
Although this program is often viewed as being only for female manager candidates who undergo training, this is not the case. In 
order to promote a culture that values diversity, all managers participate in kick-off meetings and listen to the strong ideas expressed by 
the chairman, president, and executives in charge. In addition, a mentor system is in place during the training, in which multiple 
executives play a supportive role. There have been comments from executives that they have made new discoveries through interaction 
with the trainees.
The bonds between trainees are strong, and I think it is great that trainees and experienced trainees are able to work 
autonomously, discussing their problems during and after the training, and senior trainees giving advice to junior trainees.
On the other hand, it is desirable that the ratio of male to female managers should be equal to the ratio of male to female 
employees, even without special programs. With that in mind, it is our ultimate goal to dissolve this program.
When I was first invited to participate in the Raise UP Program, I was a bit hesitant. I had never thought about becoming a manager 
before. However, I had participated in the DIAMOND Project training program and decided to take part in this program as well because 
I was interested in the training.
The training in this program was structured in such a way that it enabled me to think carefully about where I want to be, and it was 
more difficult than any other training I had experienced before, making it a considerable challenge to complete. At the end of the 
program, we had to make a presentation in front of the chairman and president, and we had to rework our materials many times in 
order to achieve that goal. The mentor executives also consulted with me and helped me rehearse my presentation. Such experiences 
were stimulating, and participating in the program was a great opportunity for me to review my career.
My own awareness has changed dramatically as a result of participating in the program, and I feel less discouraged about 
becoming a manager. Rather, I now feel that I have a special opportunity to become a manager, so I should make the most of it.
Even now, female employees may have an image of female managers as being “special people” or “needing strong leadership to 
lead their subordinates,” but there are many different kinds of people in management positions, both men and women. We will continue 
our efforts to increase the number of female managers and other attractive leaders in our company who make the most of their 
uniqueness.
Raise UP Program, a selective female 
manager promotion training, was 
implemented based on the concept  
“one step forward in a resilient manner 
while staying true to oneself”
Natsuki Hirano
General Manager of Human Resources Strategy Dept., Global Strategy Div.
After completing the program, which I 
initially participated in with some 
hesitancy, my awareness of management 
posts has changed dramatically
Namiko Nishimoto
Diversity Promotion Team Leader, 
HR Development,
HR Development Dept.,
HR Communication Company
Interview with a female manager
Proportion of female employees
10
5
0
20
15
（％）
2019
2020
2021
2018
2017
FY
Generalists
Section Chiefs
Managers
2.60
2.60
2.99
16.0
3.23
3.23
4.39
15.6
1.53
1.53
1.24
1.24
2.28
2.49
1.83
1.83
2.94
15.4
14.8
14.7
As a company that excels in the 
empowerment of women, we were 
selected as a Nadeshiko Brand 
company for FY2021, which is jointly 
selected by the Ministry of Economy, 
Trade and Industry and the Tokyo 
Stock Exchange. This is the second 
time for us to be selected as a 
Nadeshiko Brand company following 
the selection in FY2018.
Selected as a Nadeshiko Brand company for FY2021 as a 
company that promotes the empowerment of women
Human Capital Management
Vision
State of DE&I
Providing 
opportunities and 
developing each 
individual so they 
can make their 
own unique 
contribution
NGK SPARK PLUG CO., LTD. Integrated Report 2022
39
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

To improve productivity and develop self-disciplined human resources, we have formulated Work Style Reform Declaration 
based on two pillars: promoting comfortable remote work and creating new value with tools responding to change.
We are working to put in place a remote access environment and introduce a telephone extension system even available 
for employees working remotely or on business trips to realize the work style reforms.
We are also promoting the creation of working environment where employees can more easily work remotely by 
eliminating a requirement for attendance (clock-in time), offering a remote work allowance, putting in place satellite offices and 
sharing information on ingenious approaches for remote work taken at workplaces. We will review the modality of organization 
as well as our business management through the promotion of remote work, and create self-disciplined human resources who 
are not tied down to tradition and capable of creating new value.
In addition, with the aim of increasing opportunities for our employees to play an active role in the company, we launched 
a second job system in October 2021. This program is available to those who meet the requirements and obtain permission, 
and is expected to have positive effects such as the formation of new contacts, acquisition of diverse work styles, personal 
growth and self-realization, and expansion of business opportunities.
Work style reforms
We recommend “diversified work styles” in order to create an “organization comprised of passionate individuals working together” of NITTOKU 
BX.
 Promote comfortable remote work to employees 
 Create an environment with a goal of a remote work rate of 70% or more.
 Prepare tools that respond to change and create new value 
 To that end, we will invest in digital solutions
And we want you to find the best for yourself from the many options and become a “self-disciplined human resource who can continue to add 
value.”
The NGK SPARK PLUG Group respects each person’s values and aspirations.
Work Style Reform Declaration
NGK SPARK PLUG regards the health of employees as one of its important managerial resources for sustainable corporate 
growth and is fostering the health of individual employees for “health and productivity management.” In December 2017, 
we made a declaration on health and productivity management as the entire NGK SPARK PLUG Group and are 
implementing preventive and other measures against lifestyle-related diseases, mental disorders and passive smoking to 
proactively support the health of employees.
Efforts to maintain and improve employees’ health
I.   The NGK SPARK PLUG Group declares that we will support the health of each and every employee and promote Kenkokeiei (health and 
productivity management) by viewing the health of our employees as one of the most important management resources in order to realize 
sustainable growth.
II.   We will respect the diversity and individuality of each employee and promote the creation of a workplace in which each employee can fully 
demonstrate his or her abilities as well as work energetically.
III.   We will work together with the labor and health insurance unions to actively engage in health promotion activities that include employees’ 
families from a long-term perspective.
Declaration on health and productivity management
Takeshi Kawai
Representative Director President 
Chief Operating Officer
* Kenkokeiei is a registered trademark of NPO Kenkokeiei.
The Group has identified human rights as one of the issues to be addressed in its CSR and sustainability initiatives, and is taking action 
to address this issue as part of its CSR and sustainability promotion system.
Labor and management work together to prevent harassment in the workplace. We offer consultation services to people facing 
harassment through the contact point jointly established by labor and management at each of our plants and via the Corporate Ethics 
Helpline. The Anti-Harassment Committee promptly examines issues reported through the contacts and checks facts. It then takes 
corrective action and gives instructions as needed. The results of the action taken are reported to the Compliance Committee. Other 
matters related to human rights are handled by the Compliance Committee.
The effectiveness of the compliance system, including anti-harassment measures, is periodically reviewed and reported to the CSR 
and Sustainability Committee for confirmation.
The Compliance Guidebook is distributed to employees working for the Group. This guidebook also stipulates compliance with human 
rights, including respect for human rights and prohibition of various types of harassment (such as harassment related to pregnancy, 
childbirth, childcare leave and long-term care leave, bullying, and mobbing, as well as sexual harassment including that directed against 
people of the same gender and in relation to sexual orientation or identity). The guidebook is also used in daily awareness-raising 
activities, such as reading sessions at workplaces.
In addition, in 2016, we signed the UN Global Compact and since then we have been creating more opportunities to provide 
education and information on human rights to our employees to raise their awareness. We have recently increased our focus on 
enlightenment about gender equality and LGBT-related issues through our human rights-related training and internal e-mail newsletter, 
and are also monitoring the occurrence of racial problems around the world.
We recognize that the business activities of the Group affect a wide range of people, including employees of the Group, employees of 
our suppliers, and local residents. Accordingly, with regard to human rights, we are working to identify and mitigate human rights risks 
related to the Group’s business activities.
Based on the Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the 
UN Global Compact, and the UN Guiding Principles on Business and Human Rights, we understand the need to respect the 
human rights of all people who are affected by our business activities and will make our best effort to protect the dignity of 
these people.
Human Rights Policy
Respect for Human Rights
Action 
Guidelines
  We do not discriminate against people or infringe upon their human rights based on race, ethnicity, religion, nationality, place of birth, 
social status, belief, age, disabilities, physical features, gender, sexual orientation and others.
  We do not use child labor or forced labor.
  We do not engage in harassment including sexual harassment and power abuse.
  We identify the negative impact that we could have on human rights through our business activities and try to prevent or reduce such 
impact.
  In the event of direct or indirect violation of human rights, we protect the victims through appropriate investigations and responses.
  We promote education and enlightenment so that this policy is understood and implemented throughout our business activities.
Promotion system
Educational activities
Human rights due diligence
Human Capital Management
We were recognized as one of the brands under the Health & Productivity 
Stock Selection 2022 jointly selected by the Ministry of Economy, Trade and 
Industry and the Tokyo Stock Exchange. This is the first time that we have 
been selected under the Health & Productivity Stock Selection. In addition, 
this is the fifth time for us to be certified as one of the Excellent Enterprises 
of Health and Productivity Management 2022 (“White 500”) by the Nippon 
Kenko Kaigi.
Selected under the Health & Productivity Stock Selection for the first time
Certified as one of the Excellent Enterprises of Health and 
Productivity Management (“White 500”) for the fifth time
We have issued CSR and Sustainability Procurement Guidelines to our suppliers to promote CSR and sustainability initiatives throughout our 
supply chain. These guidelines also include compliance items related to human rights such as labor, health and safety.
We are requesting suppliers to survey the status of implementation with a checklist every two years, providing feedback on the evaluation 
results. For suppliers that require follow-up, we confirm the situation by visiting them and other means. We provide support as appropriate if 
improvements are necessary.
Initiatives on the supply chain
NGK SPARK PLUG CO., LTD. Integrated Report 2022
40
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Outside Directors’ Roundtable Discussion
What developments have you seen with regard to the 
challenges in evaluating the effectiveness of the Board 
of Directors in the previous year?
Otaki   Regarding fulfillment of the supervisory function in light of 
the introduction of the in-house company system, which was 
stated as one of the issues, we are still in the process of 
delegating business-related decisions to each company, and 
during the past year we have been discussing specifically about 
defining the scope of authority and responsibility. Because we are 
still in the process of accumulating information on the 
performance and effects of activities based on the independent 
judgment of each company, we have yet to fully confirm the 
fulfillment of the supervisory function. We will also be 
implementing a framework in which the Board of Directors checks 
to see if each company’s operations are in line with the direction 
that the entire Group is aiming for.
Yasui   With the introduction of the in-house company system, 
we have delegated authority to each company. We are also 
encouraging the Board of Directors to shift from a traditional 
management style to a monitoring style. We transitioned to a 
company with an Audit and Supervisory Committee in June of this 
year, and the ratio of outside directors on the Board of Directors 
has increased to 7 out of 11, which is the result of discussions 
regarding the transition. On the other hand, the transition to a 
monitoring system will make it more difficult for directors to get an 
understanding of the detailed activities of each company, so we 
will have to be mindful of how we respond to this issue.
Clugston   I believe that we have a heavier responsibility in terms 
of control through monitoring. As each company will become 
more unique, and will proactively engage in M&As and 
collaboration with other companies, it will be difficult for the Board 
of Directors to oversee whether these activities are in line with the 
approach of the Group as a whole, even in terms of expertise. I 
think this is one of the challenges in monitoring.
Doi   As a common theme across companies, last year the Board 
of Directors discussed issues related to the development of ICT 
infrastructure and personnel systems. I feel that monitoring is still 
insufficient to ensure effective governance in these areas, and I 
think that a unified decision-making process is required across all 
the companies. I wonder how much DX will be adopted in 
response to this opportunity. This could include a framework for 
sharing information between companies.
Otaki   What will become an issue in the future is when there is a 
conflict between management decisions made by each company 
and management decisions made from the perspective of 
company-wide optimization. It is necessary to hold robust 
discussions while fostering a mindset in which each company 
pursues the best with autonomy.
Doi   Regarding another issue in the effectiveness evaluation, 
enhancing the monitoring function on non-financial indicators, I 
would like to commend the internal carbon tax that was 
introduced in April 2022. This system, in which funds are 
collected according to the CO2 emissions of each department 
and used to invest in renewable energy facilities, will be applied to 
each company, and is expected to serve as a monitoring function 
for CO2 emissions.
Yasui   While non-financial indicators are of course indicators of 
our sustainability efforts, I also believe that they should be 
considered and emphasized as indicators of how well we are 
stepping into new business areas in the transformation of our 
business portfolio that the Group aims to achieve. How much 
investment is being made in new business areas? The Board of 
Directors has the role of checking whether or not we are working 
on the transformation of our business portfolio through non-
financial indicators.
Doi   The objective of the transformation of our business portfolio 
is to improve the extremely high dependence of profits on the 
Automotive Components Group and to realize a profit structure 
Supporting challenge aimed at the transformation of business portfolio
Outside Director
Mackenzie Donald Clugston
Outside Director
Miwako Doi
Outside Director
Kanemaru Yasui
Outside Director
Morihiko Otaki
NGK SPARK PLUG CO., LTD. Integrated Report 2022
41
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Outside Directors’ Roundtable Discussion
that leads to sustainable growth. On the other hand, as an 
outside director, I would like to focus not only on immediate 
profits, but also on what kind of technological solutions can be 
developed to become carbon neutral and contribute to society. If 
we do not change our business portfolio assuming carbon 
neutrality, we will not be able to survive as a company that can 
win in the global market. From this perspective, it will be 
necessary to emphasize carbon neutrality and encourage efforts 
to achieve it.
What were the changes resulting from the transition to 
a company with an Audit and Supervisory Committee?
Yasui   Among the members of this roundtable discussion, I am 
now an outside director serving as an Audit and Supervisory 
Committee Member. I believe that the roles and functions 
assumed by outside directors will remain unchanged, but the 
major change will be the addition to the Board of Directors of 
executives whose function will be equivalent to that of 
conventional Audit & Supervisory Board members. In other words, 
the members involved in auditing will have the same voting rights 
on proposals as other directors, will participate in discussions at 
meetings of the Board of Directors as participants rather than as 
observers, and will be responsible for making decisions.
Otaki   Audit and Supervisory Board Members can express their 
opinions as a committee in addition to expressing their opinions 
as individual directors, so it can be said that monitoring is doubly 
strengthened in this sense. Another major point is to further 
strengthen cooperation and information sharing with the Internal 
Auditing Office, centered around full-time Audit and Supervisory 
Board Members, in order to collect quality information more 
efficiently.
Clugston   Another change is that, with this transition, seven of 
the eleven members of the Board of Directors are outside 
directors, which is a majority. However, outside directors have not 
found it difficult to speak up in the past because there are more 
inside directors, and we have had free discussions, so I do not 
expect any major changes from that standpoint.
Doi   To take an extreme example, the ratio of outside directors 
could be significant in an emergency situation, such as when the 
management system is reformed in response to a significant 
deterioration in business performance. Even in such a case, 
however, I do not believe that discussions should be conducted 
solely from an outsider’s perspective, ignoring the unique culture 
and values that the company has built up and the wishes of the 
employees working on the front lines.
What actions are required to realize the 2040 Vision?
Otaki   With an eye toward 2040, the executives will establish 
action plans for the next one or two years, and we, the outside 
directors, will be responsible for monitoring whether these action 
plans are being properly implemented toward medium- to long-
term goals. We have been doing this for some time, but in order 
to speed up the process of the transformation of our business 
portfolio, it will be necessary to increase the incentives for and 
pressure on executives.
Clugston   The current phase for the Group is one in which we 
should take advantage of the free thinking. It is important to 
broaden our perspective and look to the future of the company 
as much as possible, and I think it is preferable to monitor 
whether the direction is good or not rather than to control the 
company too tightly. Too large an investment at this time is risky, 
while too small an investment will have little effect, so it is the 
responsibility of the management team to find the right balance 
and make the decision to execute the investment.
Doi   I feel that it is difficult to gain the understanding and 
acceptance of the entire Group regarding the need to transform 
the business portfolio under the current favorable business 
conditions. We also need to understand and support the need for 
investment in growth areas and new fields. However, we should 
not proceed with investments blindly. Under unstable external 
circumstances, I think we should set conditions for withdrawal 
from business based on the assumption of risk in advance.
Yasui   For the Group, which has basically prioritized safety and 
soundness, the question of how much risk to take and how much 
to invest in new areas in the future is a difficult theme to address. 
We need to minimize investment and maximize profits in the 
Automotive Components Group, and invest in areas such as 
decarbonization and unknown areas that have never been 
experienced before without fearing risks. Of course, it is not 
enough to invest in everything, but if we do not take risks while 
making investments, we will not be able to transform our business 
portfolio.
Clugston   I would say that our future depends on how much 
risk we take. In the past, we have avoided risk as much as 
possible. However, I feel that the momentum to take on new 
challenges is growing, and I would like to support them greatly 
while encouraging executives with the incentives and pressure 
that Mr. Otaki mentioned.
What are your thoughts on human resource policies, 
such as improving employee engagement?
Clugston   As a corporate group that operates globally, we 
should promote human resource policies that actively employ 
more talented engineers overseas. For example, we could 
establish R&D centers in Europe and the U.S. and bring in foreign 
engineers to create a foundation for innovation that differs from 
that of the headquarters, or to enhance mutual technological 
capabilities through competition and other initiatives that will lead 
to global growth.
Doi   I think we are still in the process of securing diversity in 
human resources and promoting the active participation of 
women. I would like to increase the ratio of female managers and 
produce female corporate officers and internal female directors. I 
also believe that we should pay close attention to employee 
engagement as a non-financial indicator. As we transform our 
business portfolio going forward, we are introducing various 
measures, including the introduction of the in-house company 
system, and the Group is undergoing a major transformation. We 
need to follow up on how employee engagement will change as 
the portfolio transformation progresses.
Yasui   As for internal organizations, the Human Resources 
Strategy Dept. and the Sustainability Strategy Dept. are taking 
the lead in implementing human capital measures. Regarding 
diversity, looking at the status of female employees, foreign 
nationals, and mid-career hires, a certain level of diversity has 
been secured up to the management level, but for higher levels, 
there is still work to be done, and I look forward to the 
achievement of diversity in the future.
Otaki   I would like to consider how to monitor employee 
engagement. Satisfaction surveys through questionnaires, for 
example, would be good feedback for employees and lead to 
increased engagement if the company can be improved based 
on the data captured from these surveys. As Ms. Doi mentioned, 
how employees perceive the portfolio transformation and what 
each one of them feels will be an important indicator, and we 
must respond to the thoughts of our employees.
NGK SPARK PLUG CO., LTD. Integrated Report 2022
42
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Instruction
Appointment/
dismissal/
supervision
Appointment/
dismissal
Audit
Mutual 
cooperation
Advising/
reporting
CSR and 
Sustainability Committee
Board of Directors
Internal Auditing Ofﬁce
Nomination Committee
Reporting
Accounting 
audit
Remuneration Committee
Business Operating Section (Corporate functions, 
Internal Companies, Divisions)/Group Companies
Mutual 
cooperation
Audit
Supervision
Audit
Audit and Supervisory
Committee Ofﬁce
Business execution
Directors 
(excluding Audit and Supervisory Committee members)
Directors 
(Audit and Supervisory Committee members)
Audit and 
Supervisory Committee
Independent auditor
Appointment/
dismissal
Appointment/
dismissal
Risk Management Committee
Compliance Committee
Quality Committee
Information Security Committee
Environment Committee
Safety and Health Committee
Special Committees
Instruction
Mutual 
cooperation
Instruction
Corporate Ofﬁcers and 
Company Presidents Meeting
Supervision
Advising/reporting
Reporting
Corporate Ofﬁcers
Instruction
President and CEO
Corporate Management Committee
Strategy
HR
Investment
General meeting of shareholders
Corporate Governance
In line with the corporate philosophy expressed in the slogan, “With established trust and confidence inside and outside 
the company, we aim to contribute to the peoples of the world by creating and putting at their proposal new values for the 
future,” we are enhancing the corporate governance system that we built to foster business management that will increase 
our corporate value on a medium- to long-term basis. Our basic philosophy on corporate governance is to promote fair 
The Company has selected a company with an Audit and 
Supervisory Committee for the purpose of further enhancing 
discussions on management policies and strategies at the Board 
of Directors, strengthening the supervisory function, and further 
speeding up management decision-making and execution of 
business. Each organization is set up within the framework of a 
company with an Audit and Supervisory Committee.
Corporate governance system
and highly transparent management for our stakeholders, including shareholders, customers, suppliers, employees and 
local communities, and build relationships of trust with them, and to operate and further improve our management and 
internal control systems to achieve sustainable growth through efficient and sound management.
Directors who are Audit and Supervisory Committee members
FY2022
Name
Nomination Committee
Remuneration Committee
Mikihiko Kato
Attends the meeting
Attends the meeting
Kanemaru Yasui
Attends the meeting
Attends the meeting
Fumiko Nagatomi
Attends the meeting
Attends the meeting
Christina L. Ahmadjian
Attends the meeting
Attends the meeting
Members of the Nomination and Remuneration Committees
Basic information 
As of July 1, 2022
Organizational design
Company with an Audit and Supervisory Committee
No. of directors
11 (7 independent outside directors)
No. of directors who are Audit and Supervisory 
Committee members among total no. of directors
4 (3 independent outside directors)
Independent auditor
KPMG AZSA LLC
Directors
FY2022
Name
Nomination Committee
Remuneration Committee
Shinichi Odo
Takeshi Kawai
Toru Matsui
Morihiko Otaki
Mackenzie Donald Clugston
Miwako Doi
Chiharu Takakura
The Board of Directors comprises eleven members (of which 
seven are outside directors), which in principle meets regularly 
once every month and holds ad hoc meetings when necessary. 
The Board of Directors deliberates and makes decisions on 
matters specified in laws and regulations or articles of 
incorporation as well as other important management issues 
specified in the regulation of the Board of Directors. The Board 
delegates certain matters to the Representative Director 
President, and receives reports from the Representative 
Director and President or other directors and supervises the 
status of business execution. A majority of the Board consists 
of independent outside directors to enhance its supervisory 
function and ensure management transparency. 
1  Board of Directors
Advisory body of the Board of Directors. Majority of its 
members are independent outside directors so as to ensure 
transparency and rationality for the nomination of director 
candidates. Consulted by the Board of Directors, this 
committee deliberates on the appointment of directors, which 
will be proposed at the general meeting of shareholders, as 
well as on the appointment and dismissal of executive officers, 
the evaluation of corporate performance and the results-based 
evaluation of directors (excluding directors who are Audit and 
Supervisory Committee members) and executive officers. The 
deliberation results are reported to the Board of Directors. In 
addition, directors who are Audit and Supervisory Committee 
members also attend a Nomination Committee as observers.
3  Nomination Committee
To ensure reasonableness and transparency with regard to director 
nomination, a Remuneration Committee, in which a majority of the 
members are independent outside directors, was established as an 
advisory body to the Board of Directors. Based on the Board of 
Directors’ request for opinions, the Remuneration Committee 
deliberates on matters related to remuneration of directors (excluding 
directors who are Audit and Supervisory Committee members) and 
executive officers, including the appropriateness of policies, 
procedures, and systems, as well as the appropriateness of the 
proposed remuneration of each director (excluding directors who are 
Audit and Supervisory Committee members) and executive officer, and 
delivers its opinions to the Board of Directors. In addition, directors 
who are Audit and Supervisory Committee members also attend a 
Remuneration Committee as observers.
4  Remuneration Committee
5  Corporate Management Committee
The Corporate Management Committee, comprising representative 
directors and some executive officers, was established to make 
decisions on and supervise important matters relating to business 
execution in accordance with the basic management policies 
determined by the Board of Directors, to discuss and understand in 
advance business challenges to be addressed and risks that the 
Group is facing, and to promptly respond to changes in the 
management environment. The Corporate Management Committee 
addresses management strategy and other important matters 
relating to overall management and also focuses its deliberations on 
important human resource strategies and measures relating to the 
assignment and development of human resources as well as 
significant investments including capital expenditures, equity 
contributions, acquisitions, and capital tie-ups.
6  Corporate Officers, Corporate Officers and 
Company Presidents Meeting
We adopt the corporate officer system to foster business 
execution based on the policies set by the Board of Directors 
and clarify responsibility for the execution results. Corporate 
officers are selected by the Board of Directors and report on 
their business execution at the monthly Corporate Officers 
and Company Presidents Meeting to share information and 
exchange opinions in a cross-sectional way.
The Audit and Supervisory Committee is composed of four Audit 
and Supervisory Committee members, three of whom are outside 
Audit and Supervisory Committee members. The Committee 
audits and supervises the directors’ business execution as an 
independent organization on the behalf of shareholders. Full-time 
Audit and Supervisory Committee members are selected from the 
perspective of maintaining the audit environment, gathering 
information from within the company, and monitoring and verifying 
the development and operation of internal control systems on a 
daily basis and share such information with other members to 
ensure the effectiveness of organizational audits. The Audit and 
Supervisory Committee also confirms the appropriateness and 
suitability of the nominations and remuneration of directors 
(excluding directors who are Audit and Supervisory Committee 
members) by attending Nomination Committee and Remuneration 
Committee meetings and receiving explanations from the 
representative directors and forms opinions on these matters.
2  Audit and Supervisory Committee
Corporate Governance System Chart (As of July 1, 2022)
3
4
5
6
Internal  
Outside  
1
2
NGK SPARK PLUG CO., LTD. Integrated Report 2022
43
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Corporate Governance
Directors (as of July 1, 2022)
April 1987:
Joined our company
February 2011: General Manager of Sensor Engineering Dept. II, Sensor Div., 
Automotive Components Gr.
April 2012:
Corporate Officer
April 2015:
Managing Officer
June 2015:
Member of the Board, Managing Officer
April 2016:
Member of the Board, Senior Managing Officer
April 2019:
President & Chief Operating Officer (up to today)
Takeshi Kawai
Representative Director, President, Chief Operating Officer
All Businesses, Global Strategy Div., and Global Group 
Governance Div.
August 1996:
President & CEO, JOHNSON & JOHNSON K.K.
VISION CARE COMPANY
August 2011:
Vice Chairman of the Board, PASONA INC.
June 2013:
Member of the Board (Outside Director),  
NGK SPARK PLUG CO., LTD. (up to today)
June 2016:
Director, Henry Schein Japan K.K. (up to today)
August 2016:
Vice Chairman, PASONA INC.
June 2018:
Outside Director, GIGA PRIZE CO., LTD. (up to today)
June 2020:
Outside Director, FP Corporation (up to today)
Morihiko Otaki
Member of the Board (Outside Director)
April 1977:
Joined our company
February 2003: General Manager of Overseas Aftermarket Sales & Marketing Dept., 
Sales and Marketing Div., Automotive Components Gr.
July 2005:
President, NGK SPARK PLUGS (U.S.A.), INC.
June 2007:
Member of the Board
June 2010:
Member of the Board (Managing Director)
June 2011:
President
April 2012:
President & CEO
April 2016:
Representative Director & Chairman of the Board President & Chief 
Executive Officer
April 2019:
Representative Director & Chairman of the Board (up to today)
Shinichi Odo
Representative Director,
Chairman of the Board
April 1984:
Joined our company
April 2011:
President of NGK SPARK PLUG EUROPE GmbH
October 2013: General Manager of OEM Sales & Marketing Dept., Sales and 
Marketing Div., Automotive Components Gr.
December 2014: President of NGK SPARK PLUG (SHANGHAI) CO., LTD.
April 2015:
Corporate Officer
July 2016:
President of NGK SPARK PLUG (SHANGHAI) TRADING CO., LTD.
April 2018:
Managing Officer
June 2018:
Member of the Board, Managing Officer
April 2019:
Member of the Board, Executive Vice President
April 2020:
Representative Director, Member of the Board, Executive Vice 
President (up to today)
Toru Matsui
Representative Director, Member of the Board, 
Executive Vice President, Assistant to President, 
Assistant to President, Mirai Creation M&A Dept., R&D Div., 
and Business Creation Company
June 1982:
Joined Department of Foreign Affairs and International Trade of the 
Canadian Government
August 2000:
Canadian Consul General in Osaka
August 2003:
Minister, Embassy of Canada in Japan
August 2009:
Ambassador of Canada to Indonesia, Timor-Leste and the ASEAN
November 2012: Ambassador of Canada to Japan
June 2016:
Outside Director, KAMEDA SEIKA CO., LTD. (up to today)
September 2016: Specially Appointed Professor, Kwansei Gakuin University (up to today)
June 2017:
Outside Director, Idemitsu Kosan Co., Ltd.
March 2018:
Outside Director, Sapporo Holdings Limited (up to today)
June 2019:
Member of the Board (Outside Director), NGK SPARK PLUG CO., LTD. 
(up to today)
Mackenzie Donald
Clugston
Member of the Board (Outside Director)
Miwako Doi
Member of the Board (Outside Director)
April 1979:
Joined Tokyo Shibaura Electric Co., Ltd. (currently Toshiba Corporation)
July 2005:
Senior Fellow, Corporate Research & Development Center, Toshiba Corporation
July 2008:
Chief Fellow, Corporate Research & Development Center, Toshiba Corporation
April 2014:
Auditor, National Institute of Information and Communications Technology, 
an Incorporated Administrative Agency (currently, a National Research 
and Development Agency) (up to today)
June 2015:
Outside Director, Nomura Research Institute, Ltd.
April 2017:
Executive Director, Nara Institute of Science and Technology (up to today)
June 2019:
Outside Director, Isetan Mitsukoshi Holdings Ltd. (up to today)
April 2020:
Vice President, Tohoku University (up to today)
June 2020:
Outside Director, Subaru Co., Ltd. (up to today)
Member of the Board (Outside Director), NGK SPARK PLUG CO., LTD. 
(up to today)
Mikihiko Kato
Member of the Board,
Full-time Audit and Supervisory Committee Member
April 1985:
Joined our company
February 2012: General Manager, Corporate Planning Dept.
August 2012:
President of CERAMICA E VELAS DE IGNICAO NGK DO BRASIL LTDA.
October 2015: General Manager, Corporate Planning Dept.
April 2016:
Corporate Officer
June 2017:
Member of the Board, Corporate Officer
April 2019:
Member of the Board, Executive Officer
April 2022:
Member of the Board
June 2022:
Member of the Board, Full-time Audit and Supervisory Committee 
Member (up to today)
April 1983:
Joined the Ministry of Agriculture, Forestry and Fisheries
May 1992:
Obtained an MBA from Georgetown University (U.S.A)
August 1993:
Consultant, Sanwa Research Institute Corp.
July 1999:
Planning Manager, Human Resources Division, Pfizer Japan Inc.
October 2006: General Manager of Human Resources Department, Human Resources 
and Communication Division, Novartis Pharma K. K.
July 2014:
Corporate Fellow, General Manager, Global Human Resources Dept., 
Ajinomoto Co., Inc.
April 2020:
HR Advisor, ROHTO Pharmaceutical Co., Ltd.
June 2020:
Director, Head of Well-being Management Promotion Division, 
ROHTO Pharmaceutical Co., Ltd.
June 2021:
Outside Audit & Supervisory Board Member, NGK SPARK PLUG CO., LTD.
April 2022:
Director, Chief Human Resource Officer, ROHTO Pharmaceutical Co., Ltd. (up to today)
June 2022:
Member of the Board (Outside Director), NGK SPARK PLUG CO., LTD. (up to today)
Chiharu Takakura
Member of the Board (Outside Director)
Christina L. Ahmadjian
Member of the Board (Outside Director),
Audit and Supervisory Committee Member
January 1995: Assistant Professor, Columbia Business School
October 2001: Associate Professor, Graduate School of International Corporate 
Strategy, Hitotsubashi University
January 2004: Professor, Graduate School of International Corporate Strategy, 
Hitotsubashi University
June 2009:
Outside Director, Eisai Co., Ltd.
April 2010:
Dean, Graduate School of International Corporate Strategy, Hitotsubashi University
April 2012:
Professor, Graduate School of Commerce and Management, Hitotsubashi University
June 2012:
Outside Director, Mitsubishi Heavy Industries Ltd.
June 2014:
Outside Director, Japan Exchange Group, Inc.
April 2018:
Professor, School of Business Administration, Hitotsubashi University Business School
June 2018:
Outside Director, Sumitomo Electric Industries, Ltd. (up to today)
March 2019:
Outside Director, Asahi Group Holdings, Ltd. (up to today)
June 2021:
Outside Director, NEC Corporation (up to today)
April 2022:
Emeritus Professor, Hitotsubashi University (up to today)
Specially Appointed Professor, Rikkyo University (up to today)
June 2022:
Member of the Board (Outside Director), Audit and Supervisory 
Committee Member, NGK SPARK PLUG (up to today)
March 1981:
Registered as a Certified Public Accountant
April 1999:
Representative Partner, Central Audit Corporation
September 2006: Partner, Misuzu Audit Corporation
August 2007:
Representative Partner, AZSA & Co. (currently KPMG AZSA LLC.)
June 2008:
Managing Partner, Director of Nagoya Branch, AZSA & Co. (currently 
KPMG AZSA LLC.)
June 2013:
Retired from KPMG AZSA LLC.
July 2013:
Director, Yasui Certified Public Accountant Office (up to today)
June 2014:
Outside Director, NICHIHA Corporation
Member of the Board (Outside Director), NGK SPARK PLUG CO., LTD.
June 2022:
Member of the Board (Outside Director), Audit and Supervisory 
Committee Member (up to today)
Kanemaru Yasui
Member of the Board (Outside Director),
Audit and Supervisory Committee Member
Fumiko Nagatomi
Member of the Board (Outside Director),
Audit and Supervisory Committee Member
April 1981:
Registered as an attorney and joined Hachisuka Law Firm
March 1989:
Left Hachisuka Law Firm
April 1989:
Opened Nagatomi Law Firm (up to today)
May 2006:
Outside Auditor, UCS CO., LTD.
June 2016:
Audit & Supervisory Board Member (Outside Corporate Auditor),  
Chubu Electric Power Co., Inc. (up to today)
June 2017:
Outside Audit & Supervisory Board Member, NGK SPARK PLUG CO., LTD.
June 2022:
Member of the Board (Outside Director), Audit and Supervisory 
Committee Member (up to today)
NGK SPARK PLUG CO., LTD. Integrated Report 2022
44
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Corporate Governance
Executive Officers and Corporate Officers who are not directors
Noboru Ishida
Executive Officer
Energy Conversion Business Development
President of CECYLLS Co., Ltd.
Kenji Isobe
Executive Officer
Financial Strategy, Business Management, and Human 
Resources Strategy Depts., Global Strategy Div.
FP & A Company, Business Support Company, HR 
Communication Company
Company President FP & A Company, Secretarial Dept.
President of NGK SPARK PLUGS (U.S.A.) HOLDING, INC.
Hiroyuki Maeda
Executive Officer
Corporate Strategy and Sustainability Strategy Depts., 
Global Strategy Div.
Business Transformation Div., Machining Technology 
Company
Overall management of all businesses
Kazunobu Hasegawa
Executive Officer
Regional President China
President of NGK SPARK PLUG (SHANGHAI) CO., LTD.
President of NGK SPARK PLUG (SHANGHAI) TRADING CO., LTD.
Shigeki Mori
Corporate Officer
Energy Conversion Business Development Dept.
Yoshikuni Sato
Corporate Officer
President of Morimura SOFC Technology Co., Ltd.
Tetsuya Sugiura
Corporate Officer
Company President, Machining Technology 
Company
Shingo Arimi
Corporate Officer
Company President, Production Engineering 
Company
Kazuyuki Kimura
Corporate Officer
General Manager, Digital Transformation Dept., 
Global Strategy Div.
Company President, IT Systems Company
Michael Alan Schwab
Corporate Officer
Regional President PAMA
President of NGK SPARK PLUGS (U.S.A.), INC.
President of NGK SPARK PLUGS CANADA LIMITED
Damien Germès
Corporate Officer
Regional President EMEA
President of NGK SPARK PLUG EUROPE GmbH
Keiji Suzuki
Executive Officer
R&D Div.
Hiroyasu Ogura
Executive Officer
Digital Transformation Dept., Global Strategy Div.
IT Systems Company
Company President, SCM Solutions & Services Company
Regional President ASEAN, India
President of NGK SPARK PLUGS (ASIA) CO., LTD.
President of NTK CORPORATION ASIA CO., LTD.
Osamu Shinkai
Executive Officer
Company President, Advanced Ceramics Company
President of NTK CERATEC CO., LTD.
Plant Manager of Ise
Koji Suzuki
Executive Officer
Company President, Mobility Business Company
Executive/Corporate Officers (As of July 1, 2022)
Considering the business and management system of the Group, the Board of Directors identified the knowledge and experience which 
it should possess from “Basic areas from the perspective of important management decision-making and business execution supervi-
sion” and “Areas that need to be particularly promoted and supervised to realize the medium-term management plan.” According to 
this, Directors are assigned in well-balanced manner with consideration for diversity.
Skill Matrix of Directors
Name
Position
Independence
Management
Finance/Accounting
Governance/ 
Legal/Risk management
Experience overseas
Technology/R&D
Sales/Marketing
New Business/M&A
HRD/HR
IT/DX
SCM
*2
*3
Shinichi Odo
Representative Director and 
Chairman of the Board
Takeshi Kawai
Representative Director and 
President,
Chief Operating Officer
Toru Matsui
Representative Director,
Executive Vice President
Morihiko Otaki
Outside Director
 
Mackenzie 
Donald Clugston
Outside Director
Miwako Doi
Outside Director
Chiharu Takakura
Outside Director
Mikihiko Kato
Director
Full-time Audit and 
Supervisory Committee 
Member
Kanemaru Yasui
Outside Director
Audit and Supervisory 
Committee Member
Fumiko Nagatomi
Outside Director
Audit and Supervisory 
Committee Member
Christina L. 
Ahmadjian
Outside Director
Audit and Supervisory 
Committee Member
Skill Matrix of Directors*1
*1: The above matrix represents the areas of expertise that we expect from each director and does not represent all of the knowledge and experience that they possess.
*2: Areas fundamental for critical decision-making in the management and supervision of business operations
*3: Areas that require active promotion and supervision to realize the Medium-term Management Plan
Hiroyuki Tanabe
Executive Officer
Production Engineering Company,  
Global Procurement Company
Plant Manager of Komaki
Masaki Sumiya
Executive Officer
Company President, Global Procurement Company
Company President, HR Communication Company
General Manager, Tokyo Branch
Tomohiro Yamaguchi
Executive Officer
Yoshiyuki Takayanagi
Executive Officer
Company President, Business Support Company
Akiyoshi Kato
Executive Officer
IGNITE Company, Sensor Beyond Company
Plant Manager of Nagoya
Plant Manager of Satsuma
Yoshitaka Suzuki
Executive Officer
Business Transformation Div.
Tsunejiro Tajima
Corporate Officer
Vice President of NTK CERATEC CO., LTD.
President of NTK Technologies, INC.
Hiroaki Masuda
Corporate Officer
General Manager, Corporate Strategy Dept., 
Global Strategy Div.
Yuichi Yamada
Corporate Officer
Company President, Sensor Beyond Company
Akira Suzuki
Corporate Officer
Company President, IGNITE Company
Jun Chino
Corporate Officer
Company Vice President, Mobility Business Company 
General Manager, AM-GHQ
NGK SPARK PLUG CO., LTD. Integrated Report 2022
45
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Corporate Governance
In line with the corporate philosophy expressed in the slogan, “With established trust and confidence inside and outside the 
company, we aim to contribute to the peoples of the world by creating and putting at their proposal new values for the future,” 
we are enhancing the corporate governance system that we built to foster business management that will increase our 
corporate value on a medium- to long-term basis. Our basic philosophy on corporate governance is to promote fair and highly 
transparent management for our stakeholders, including shareholders, customers, suppliers, employees and local 
communities, and build relationships of trust with them, and to operate and further improve our management and internal 
control systems to achieve sustainable growth through efficient and sound management.
With regard to “performance of supervisory functions in light of the introduction of a company system,” one of the issues 
identified through the evaluation of effectiveness in FY2020, a company system was introduced in April 2021 for the purpose of 
clarifying the responsibilities and authority of business execution divisions and facilitating flexible decision making, and based on 
the opinions of the outside directors, the Board of Directors verified whether the expected effects have been achieved and 
confirmed that it will continue to perform periodic verification. With regard to “reinforcement of monitoring functions for non-
financial management indicators,” non-financial indicators as indicators for the performance linked stock compensation program 
were introduced in FY2021, and the CSR and Sustainability Committee, which is attended by all directors and Audit & 
Supervisory Board members, reviewed the status of responses to group priority issues (materiality) and discussed the 
introduction of an internal carbon tax and environmental fund.
Items for which further improvement of the effectiveness of the Board of Directors would be desirable based on the results 
of the current effectiveness evaluation include further enhancing deliberation within the Board of Directors regarding medium to 
long term management strategies and monitoring of Medium-term Management Plan as well as improvement of the prior 
distribution of materials and provision of explanations to outside directors. Going forward, the company will continue to maintain 
and enhance the effectiveness of the Board of Directors by addressing these issues.
To enhance the supervisory function of the Board of Directors and to ensure the transparency and objectivity of decision-making 
through discussions from multifaceted viewpoints, outside directors make up the majority of the Board of Directors, which comprises 
diverse talent who have abundant experience, tremendous insight and a high degree of professionalism. We appoint all the independent 
outside directors as independent officers and notify the Tokyo Stock Exchange and the Nagoya Stock Exchange of their appointment. 
In order to ensure that candidates have neither special relationships with the management team and major shareholders nor conflicts of 
interest with general shareholders, we designate those who meet all the followings as independent officers: our own criteria for the 
appointment of independent officers; the requirement of independent officers set by the Companies Act; and the rules and regulations 
stipulated by the financial instruments exchanges.
Outside directors attend the Board of Directors meetings and non-statutory advisory bodies to demonstrate their supervisory 
function by becoming involved in the important decision-making of the company from an independent standpoint, while providing 
advice from an overall perspective based on their abundant experience and insight when formulating and confirming the progress of 
medium- to long-term management policies at the Board of Directors meetings. Outside directors who are Audit and Supervisory 
Committee members serve as a supervisory and auditing function based on their independence and expert knowledge.
Basic Philosophy on Corporate Governance
Roles and Independence of Outside Directors
The Board of Directors plays the following roles to help the company achieve sustainable growth and increase its corporate value on a 
medium- to long-term basis, thereby increasing its profitability, capital efficiency and others:
The Company’s Board of Directors believes that it is important for the Board to comprise diverse human resources with different 
backgrounds, including specialized knowledge and experience, in order to achieve sustainable growth and increases in corporate value over 
the medium to long term. The Board is made up of human resources with extensive experience, high levels of knowledge, and advanced 
specialization, with consideration given to gender, nationality, work experience, and age, to achieve a good balance according to the 
business environment at a given time. In addition, by making up the majority of the Board of Directors with outside directors who have 
experience and specialized knowledge gained under environments that differ from the company, the Board can strengthen its supervisory 
function and engage in deliberations from various perspectives in an effort to ensure transparency and objectivity in decision making.
Director candidates are not excluded from consideration on the basis of their race, ethnicity, nationality, country of birth, cultural 
background, etc.
Roles and structure of the Board of Directors
  Deliberates and makes decisions on the basic management policies, medium- to long-term management strategies and other important managerial 
issues 
 Builds and improves the environment to help the management team take risks appropriately 
 Supervises the management team in a highly effective manner from an independent and objective standpoint
 Evaluation was conducted by the Board of Directors based on a survey of directors and Audit & Supervisory Board members.
  We confirmed that the effectiveness of the Board of Directors has been sufficiently secured, and more specifically we have confirmed that the effective 
measures are being taken in the following areas:
1)  Skills that the Board of Directors should have in light of management strategies were identified, and we confirmed that the Board of Directors 
comprises members who have the knowledge, skills, experience, and diversity necessary to fulfill their roles and responsibilities.
2)  All the directors share how important it is to reinforce the supervisory function of the Board of Directors and how outside directors should act therein.
3)  The Board of Directors has established suitable internal controls and risk management structures to ensure proper compliance and support risk 
taking and supervises the status of operations through the Internal Auditing Office, Compliance Committee, Risk Management Committee, and 
other bodies.
4)  We confirmed that the Board of Directors is cognizant that responses to global environmental issues including climate change and responses 
regarding sustainability including respect for human rights are crucial from the perspective of increasing corporate value over the medium to long 
term and that the management team is actively engaged in responding to these issues.
5)  To ensure that remuneration is set in a manner that provides appropriate incentives, the Remuneration Committee evaluates whether the 
execution of duties by management is appropriate from the perspectives of sustainable growth and enhancement of corporate value.
6)  The Board of Directors implements appropriate improvement measures regarding key issues identified through evaluation of the effectiveness of 
the Board of Directors and strives to enhance its effectiveness.
1) Method of evaluation 
2) Overview of evaluation results
The company conducted an evaluation on the effectiveness of the Board of Directors. An overview of this evaluation for FY2021 is as follows.
Evaluation of the effectiveness of the Board of Directors
Title 
Name
Reason for appointment
FY2021 Frequency of attendance
Board of Directors 
Audit & Supervisory Board
Outside 
director
Morihiko 
Otaki
He has a wealth of experience in global companies and expertise as an executive. As an outside director, 
he oversees business execution by the company’s management team and provides advice to the team, 
and we have selected him as an outside director with the expectation that he will continue to fulfill his role.
12/12
—
Outside 
director
Mackenzie 
Donald 
Clugston
As a diplomat, he has a great deal of global experience and expertise in international affairs and trade. As 
an outside director, he oversees business execution by the Company’s management team and provides 
advice to the team, and we have selected him as an outside director with the expectation that he will 
continue to fulfill his role.
12/12
—
Outside 
director
Miwako  
Doi
She has an abundance of experience and an outstanding record as a researcher in the field of information 
and communication and has been engaging in advanced research both in academia and in the private 
sector. As an outside director, she oversees business execution by the Company’s management team and 
provides advice to the team, and we have selected her as an outside director with the expectation that 
she will continue to fulfill her role.
12/12
—
Outside 
director
Chiharu 
Takakura
After obtaining her MBA at Georgetown University (U.S.A), she worked as a consultant in organization building and human 
resources development before taking up successive important positions with several global companies, including international 
pharmaceuticals companies. As such, she has a wealth of experience and knowledge concerning organizational 
development and human resources development. We have selected her as an outside director with the expectation that she 
will be able to oversee business execution by the Company’s management team and provide advice to the team.
10/10*
11/11*
Outside director, 
Audit and 
Supervisory 
Committee 
member
Kanemaru 
Yasui
He has expert knowledge and experience accumulated over many years as a certified public accountant. 
We have selected him as an outside director who is an Audit and Supervisory Committee member with 
the expectation that he will be able to serve as a supervisory and auditing function for the company’s 
overall management based on the knowledge and experience.
12/12
— 
Outside director, 
Audit and 
Supervisory 
Committee 
member
Fumiko 
Nagatomi
She has expert knowledge and experience accumulated over many years as a lawyer. We have selected 
her as an outside director who is an Audit and Supervisory Committee member with the expectation that 
she will be able to serve as a supervisory and auditing function for the company’s overall management 
based on the knowledge and experience.
11/12
14/14
Outside director, 
Audit and 
Supervisory 
Committee 
member
Christina L. 
Ahmadjian
She has extensive experience and deep insight as a researcher of corporate management, corporate 
governance, and organizational culture. She has been involved in management as an outside director in 
many companies. We have selected her as an outside director who is an Audit and Supervisory 
Committee member with the expectation that she will be able to serve as a supervisory and auditing 
function for the company’s overall management based on the knowledge and experience.
—
—
*After taking office as an outside Audit & Supervisory Board member on June 25, 2021.
Transition to a Company with an Audit and Supervisory Committee
Following the approval at the 122nd general meeting of shareholders held on June 24, 2022, the Company has transitioned to a 
Company with an Audit and Supervisory Committee for the purpose of further enhancing discussions on management policies and 
strategies at the Board of Directors, strengthening the supervisory function, and further speeding up management decision-making 
and execution of business.
NGK SPARK PLUG CO., LTD. Integrated Report 2022
46
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Corporate Governance
NGK SPARK PLUG’s Board of Directors engages in the formulation and implementation of the succession plan, which includes 
programs such as that to develop global managerial human resources (“HAGI Program”), such as future CEOs and other 
business leaders. The members of the Board see to it that sufficient time and resources are committed to developing their 
successors in a planned manner.
Specific involvement by the Board of Directors 
Representative directors as well as outside directors proactively participate in the development of managerial human resources, 
including serving as lecturers for the HAGI Program. 
Details of human resource development for CEO candidates 
We are implementing the HAGI Program and a training program in which internal directors and corporate officers participate. 
These programs are designed to develop future CEO candidates in a planned and strategic manner by devoting adequate time 
and resources to the task.
Succession Plan
We provide the directors with sufficient assistance to fulfill their expected roles and responsibilities where applicable. For the internal 
directors, we encourage them to take external seminars to acquire additional knowledge to meet their obligations, while the internal 
directors and corporate officers are required to attend an executive training session to share the managerial issues and seek out the 
solution. In order for the outside directors to deepen understanding of the Group, each department explains the businesses and 
operations in addition to providing them with opportunities to visit major sites of the businesses.
Directors who are Audit and Supervisory Committee members periodically take external sessions to gain understanding of what 
roles the Audit and Supervisory Committee members fulfill, the audit methods, the relevant laws and regulations, and financial 
accounting knowledge required for the accounting audit.
Training for officers
Basic policy
Remuneration for directors (excluding directors who are Audit and Supervisory Committee members and outside directors) and 
corporate officers is paid based on the policy of providing them with additional motivation to contribute to improving the company’s 
business performance on a medium- to long-term basis and growing the corporate value, while ensuring they have a shared interest 
with shareholders by holding company shares themselves. The remuneration consists of fixed remuneration paid in the form of cash; 
bonus, which is linked with the company’s single-year business performance, etc.; and performance-linked stock remuneration paid in 
accordance with each person’s position and level of achievement against the performance targets set in the medium-term management 
plan and others. Remuneration of directors who are Audit and Supervisory Committee members and outside directors comprises only 
fixed remuneration.
Our Remuneration Committee acts as an advisory body to the Board of Directors. It deliberates on the remuneration policies, 
procedures, and systems for directors (excluding directors who are Audit and Supervisory Committee members and outside directors) 
and corporate officers as well as the appropriateness of the amount of remuneration planned to be paid to each director (excluding 
directors who are Audit and Supervisory Committee members) and corporate officers, and submits the results to the Board of Directors 
to ensure the rationality and transparency of the decisions made concerning the remuneration of directors (excluding directors who are 
Audit and Supervisory Committee members and outside directors) and corporate officers. In FY2021, the committee met two times.
Remuneration for Officers
Type and details of remuneration for officers
Fixed remuneration
Bonus
Performance-linked stock remuneration
Details of 
remuneration
Fixed remuneration is determined holistically 
according to the position and responsibilities, 
by taking into account peers’ levels, the 
company performance, and the level of 
employee salaries, and then paid monthly.
Bonus is determined based on a comprehensive consideration 
of the base amount for each position, by taking into account 
quantitative targets for the degree of achievement of Company 
performance goals as well as qualitative evaluations of 
individual performance, and is paid at a certain time each year.
The Board Incentive Plan (BIP) is adopted, where the company shares 
and money in the amount equivalent to the value of the shares of the 
company are given or granted to directors at the end of the period set 
for the system, based on their positions and level of achievement 
against the targets set in the Medium-term Management Plan, etc.
Indicators against 
which the 
achievement of the 
performance 
targets is assessed
—
Consolidated revenue, Consolidated 
operating income ratio
Single-year performance goals:   Consolidated revenue, 
consolidated operating income
Medium-term performance goals:   Consolidated revenue, consolidated 
operating income, ROIC
Non-financial measures goals:   Sales from non-ICE business, rate 
of reduction of CO2 emissions
How to determine 
payment
—
Payment is determined within the range of 
0% to 175% based on the achievement of 
the company performance target and 
assessment of individual performance.
The ratio of the fixed portion to the performance-linked portion is 
set to be 3:7, in the case of 100% achievement of each indicator. 
Performance-linked portion is determined within the range of 0% 
to 200%, according to the achievement of each indicator.
Recipients
Directors, Corporate Officers
Directors (excluding directors who are Audit 
and Supervisory Committee members and 
outside directors), Corporate Officers
Directors (excluding directors who are Audit and Supervisory 
Committee members and outside directors), Corporate 
Officers (excluding employment-type corporate officers)*
Example of remuneration payment
In the case of 100% achievement of 
key performance indicators (KPIs)
Performance-linked 
stock remuneration: 
15％ 
Bonus: 
25％
Fixed remuneration: 
60％
Policy on the payment of bonus 
As for bonuses, in addition to the base amount set for each position, an amount to be decided as follows is paid to each person: 
decided comprehensively in consideration of the quantitative targets set for corporate performance such as consolidated revenue and 
consolidated operating income ratio, which reflect the results of sales activities, and based on the qualitative evaluation of the individual 
performance of the person. For FY2021, the numerical targets for consolidated revenue and consolidated operating income ratio were 
492.0 billion yen and 10.2%, while the actual results were 491.7 billion yen and 15.4%.
Performance-linked stock remuneration system 
We introduced the performance-linked stock remuneration for directors (excluding directors who are Audit and Supervisory Committee 
members and outside directors) and corporate officers (excluding employment-type corporate officers) to further clarify the link between 
the compensation of directors and the value of the Company’s stock, and to have them share interests with shareholders, so as to 
incentivize them to contribute to the improvement of the Company’s medium- to long-term performance and to increasing corporate 
value. Under the system, the Board Incentive Plan (BIP) is adopted, where points are given to directors based on their position and the 
level of achievement against the targets set in the Medium-term Management Plan. Points are calculated according to the method 
stipulated in share granting regulations, which were determined by the Board of Directors after the deliberation of the Remuneration 
Committee. After the end of the period, shares of the company and money in the amount equivalent to the value of the shares are to be 
given or granted based on granted points.
Indicators against which the achievement of the performance targets is assessed are set based on single-year performance goals, 
medium-term performance goals, and non-financial measures goals. The single-year performance goals are based on consolidated 
revenue and consolidated operating income, which reflect the results of sales activities. The medium-term performance goals are based 
on the targets set in the Medium-term Management Plan, which are consolidated revenue, consolidated operating income, and ROIC, 
an indicator of whether we have efficiently earned profits relative to invested capital. For non-financial measures goals, sales from non-
ICE business and rate of reduction of CO2 emissions are used as indicators to reflect the results of efforts for sustainable growth and 
corporate value enhancement, and to facilitate the transformation of our business portfolio.
Total amount of remuneration, etc. paid to officers, total payment amount by remuneration type, and the number of recipients (for FY2021)
Category
Total amount of  
remuneration paid  
(millions of yen)
Total payment amount by remuneration type (millions of yen)
Number of recipients  
(persons)
Fixed remuneration
Bonus
Performance-linked 
stock remuneration
Directors (excluding outside directors)
594
365
152
76
7
Audit & Supervisory Board members 
(excluding outside members)
31
31
—
—
2
Outside directors
57
57
—
—
4
Outside Audit & Supervisory Board members
39
39
—
—
3
(Notes) 1.  The following limits are set on the remuneration paid to directors, according to the resolution made at the 117th general meeting of shareholders held on June 29, 2017.
Total amount of remuneration (excluding bonus): 60 million yen or below per month
Total amount of bonus: 
180 million yen or below per year
According to the resolution made at the 121st general meeting of shareholders (held on June 25, 2021), a performance-linked stock remuneration system is implemented 
separately for four fiscal years from FY2021 to FY2024, targeting the company’s directors (excluding outside directors) and corporate officers (excluding employment-type 
corporate officers), with the upper limit on the total payment amount set at 1,000 million yen.
2.  The following limits are set on the remuneration paid to Audit & Supervisory Board members according to the resolution made at the 106th general meeting of shareholders (held 
on June 29, 2006).
Total amount of remuneration (excluding bonus): 10 million yen or below per month
Total amount of bonus: 
10 million yen or below per year
3.  “Bonus” falls under “performance-linked remunerations” and “performance-linked stock remuneration” falls under “performance-linked remunerations” and “non-monetary 
remunerations.” For the bonus and performance-linked stock remuneration shown in the table, they were recorded as expenses for FY2022.
4. Remuneration paid to one Audit & Supervisory Board member who retired at the conclusion of the 121st general meeting of shareholders is included.
*An Employee Stock Ownership Plan (ESOP) Trust has been adopted for employment-type corporate officers.
NGK SPARK PLUG CO., LTD. Integrated Report 2022
47
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Corporate Governance
Information Security
Establishment of the Audit and Supervisory Committee Office
To support the execution of duties by the Audit and Supervisory Committee, the Audit and Supervisory Committee Office was 
established, and four employees were assigned to the office full-time. These employees receive instruction from the Audit and 
Supervisory Committee members, liaise and coordinate internally, and gather and provide the necessary information. The Audit and 
Supervisory Committee Office works under the supervision and direction of the Audit and Supervisory Committee and their 
independence in relation to supervision and direction from directors (excluding directors who are Audit and Supervisory Committee 
members), corporate officers and employees is ensured. In addition, transfers, personnel evaluations, etc. require the prior consent of 
the Audit and Supervisory Committee. 
Coordination with the Internal Auditing Office
The Audit and Supervisory Committee and Internal Audit Department meet regularly and as necessary to provide direct reports and 
exchange information on audit policies, audit plans, audit implementation status, and other matters and to work in close collaboration 
with one another. In addition, Audit and Supervisory Committee members attend audits conducted by the Internal Audit Department 
when necessary, and the Internal Audit Department conducts investigations and makes reports as requested by the Audit and 
Supervisory Committee.
Measures to Strengthen Functions of Audit and Supervisory Committee
Policy on the stocks held for reasons other than pure 
investment purposes
NGK SPARK PLUG holds the stocks of its suppliers and others 
basically to maintain and enhance stable business relationships 
with them, when the company decides that holding the stocks 
will help increase its corporate value after verifying the economic 
rationality from medium- to long-term viewpoints. The Board of 
Directors annually checks whether it is rational and useful in 
terms of enhancing its corporate value to keep the stocks 
individually for each of the investee companies, in consideration 
of the capital cost and comparing the related risks and returns 
on a medium- to long-term basis. When the Board decides that 
the company should not continue to hold any of the stocks, the 
company will sell them as appropriate, in consideration of the 
market trend.
Criteria for the exercise of voting rights
For the exercise of voting rights for the stocks owned by our company, we will decide whether to exercise the rights for each item of the 
agenda, considering whether it will contribute to increasing the corporate value of the investee company and of our own company. In 
particular for the selection of directors, appropriation of retained earnings and other items that have a large impact on shareholder value, 
we will exercise the voting rights according to the criteria set for the rights.
Stocks Held for Reasons Other than Pure Investment Purposes
NGK SPARK PLUG has corporate officers who were locally recruited at its regional headquarters (RHQs) for the Americas and EMEA 
in order to ensure that speedy and accurate managerial decisions are made at bases closer to the markets they serve in view of the 
company’s globally expanding business environment. We have also formed unique governance teams at the RHQs to build an 
optimal decentralized system on a group-wide basis and enhance corporate governance as the entire Group.
Moreover, the Global Group Governance Division is in place as an organization that audits the effectiveness of the Group’s 
governance as an entity that is separate from its business execution. This organization formulates and implements measures to carry 
out audits on the management of Group companies and RHQs and on the core business operations of each department. It also 
formulates and implements measures to enhance internal control across the Group and thus plays an important role for the 
enhancement of the Group’s governance.
Enhancement of Group Governance
Amount
Number of issues
FY2017
20
16
27
29
33
40
Stocks Held for Reasons Other than Pure Investment Purposes (listed stocks)
40
20
60
80
100
20
10
30
40
50
FY2021
FY2022
FY2020
FY2019
FY2018
Reducing the stocks held for reasons other than pure investment purposes steadily, 
considering capital cost as well as risks and rewards for the medium- to long-term
0
(Billions of yen)
0
(Number of issues)
*The amount represents market capitalization.
We regard all of our own information assets as one of our management resources. Through the proper protection and 
effective use of our information assets, we pursue healthy maintenance and development of our business.
Action 
Guidelines
  We establish rules that clearly define the system and responsibilities for the protection and management of all information 
assets including the information we keep for our customers, the know-how and intellectual properties owned by our group, and 
personal information.
  We comply with laws, ordinances, and regulations regarding information security.
  We educate all executives and employees who handle information assets about the importance of information security, and about 
specific items to be observed.
  We continuously update the information infrastructure for the maintenance and improvement of the confidentiality, integrity, and 
availability of all information assets.
  We promote measures to prevent accidents in order to address the risks of information leakages associated with the continuous 
advancement and sophistication of information technology. Should an accident occur, we will strive to minimize the damage and take 
preventive measures against recurrence.
Information Security Policy
With the growing importance of information security, we have established our Information Security Committee with an eye to increasing 
the effectiveness of our information security management and reducing security risks regarding the NGK SPARK PLUG Group’s 
information assets through the concerted effort of the management team and on-site workers.
We also have our Information Security Committee chaired by the Chief Administrator of DX Strategy Dept. appointed to Chief 
Information Security Officer and the members are the information security manager of each department. We hold the Information 
Security Committee meetings at least twice a year and we foster appropriate measures by checking how information security activities 
are conducted across the Group.
In addition, the information security managers and information security members are assigned to each department to lead 
information security activities in each department. 
Promotion system
NGK SPARK PLUG CO., LTD. Integrated Report 2022
48
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction
In order to continuously respond to information security risks that threaten companies and organizations, we have set information 
security as a priority issue (materiality) and are building an information security management system.
As one of them, in 2020, we obtained accreditation for the Trusted Information Security Assessment Exchange (TISAX), the 
assessment standard of information security for the supply chain of the automobile industry in Germany. In FY2021, group companies in 
the United States and China also completed the acquisition of TISAX certification.
Information security management system
We have established a Computer Security Incident Response Team (CSIRT).
When an incident occurs, the CSIRT promptly organizes and confirms the facts, determines the level of the incident, and then 
responds. We also accumulate and share knowledge as a measure to prevent recurrence.
In addition to responding after an incident occurs, we are also striving to defend in advance, and we are trying to improve the level 
and maturity.
In FY2021, in response to the increase in damage caused by cyber attacks around the world, we conducted a comprehensive 
inspection of the servers used by our company and group companies. The servers with security concerns were identified and 
countermeasures were taken.
Responding to information security incidents
As exemplified by the General Data Protection Regulation (GDPR) enforced in Europe, measures to protect personal information have 
been enhanced globally. In response, the NGK SPARK PLUG Group has set a range of internal rules to protect, manage and handle the 
personal information of its customers and employees.
In addition, as a response to the revised Act on the Protection of Personal Information that came into effect in April 2022, we pre-
assess risks based on the type and the number of personal information and take measures to reduce the risks.
Protection of personal information

Risk management
We adapt from a global viewpoint to changes in the management environment surrounding our group and to the 
diversification of risks and will foster risk management to reduce or avoid the loss of managerial resources, thereby 
improving our corporate value.
Action 
Guidelines
  We identify the risks that might hamper the achievement of our management targets from a global and long-term viewpoint and strive to 
prevent the actualization of these risks in a planned and organization-based manner.
  In the event that such a risk materializes, we strive to minimize the impact on our stakeholders, maintain their trust and prevent the 
recurrence of similar incidents.
For risk management, we have appointed the President as “Chief Administrator” and the Director in charge of the Business 
Management Dept. as “Promotion Manager,” and are making efforts to improve and operate our risk management system that 
integrates the risk management to prevent risks and the crisis management to handle risks when they become obvious.
Moreover, we have established the Risk Management Committee, which is chaired by the corporate officer appointed by the Chief 
Administrator. This committee regularly makes improvements on the risk management system and monitors its operation. The 
effectiveness of the system has been also regularly reviewed and reported to the CSR and Sustainability Committee for its 
confirmation.
In preparation against possible earthquakes and other large-scale disasters, we are conducting BCM activities. Specifically, 
we are making business continuity plans and working on disaster control and reduction in a group-wide basis to minimize 
damage in the event of a large-scale disaster and resume production as soon as possible if operation is suspended, thereby 
helping customers maintain their supply chains.
We are also implementing measures against infectious diseases. To deal with COVID-19, we expanded our work at home 
system and reviewed work shifts in line, thereby continuing to operate our business while preventing infection. In addition, we 
will revise the business continuity guidelines for infectious disease threat and establish a system to prepare for future 
emergencies.
In order to identify and limit those risks that could have serious impacts on our business continuity and on the achievement of our 
targets, we follow the risk management process as described below. We also evaluate the ESG-related risks including those concerning 
climate change and human rights.
Risk recognition
Risk analysis
Risk evaluation
Selection of 
priority risks
Planning, 
implementing and 
monitoring of 
measures
Review
Level of impact
Probability of risk materialization
Countermeasures
Priority risks
Analysis
IT departments
To ensure our business continuity, we are continuously working to 
minimize the damage that might be caused to our IT systems in the 
event of a disaster and speed up the time required for recovery.
Specifically, we aim to minimize the damage by moving the 
system to a highly robust data center. Also, to shorten the recovery 
time, we are shifting to cloud backups so that we can recover and 
restart the systems by using undamaged backups, including 
domestic group companies. In the future, we will continue to move 
the system to the cloud and further strengthen our business 
continuity.
Moreover, we are regularly providing more specific and practical 
education and training so that employees can make better responses 
in case of a disaster.
Procurement departments
We are fostering BCP measures for key procurement items such as 
materials and parts, including purchasing from multiple suppliers. In 
view of the fact that we need a range of materials and parts to 
manufacture our products, we have built up a system to implement 
BCP measures across the supply chain in cooperation with suppliers.
Business departments
In the BCP made for each department, we set a limit for the recovery 
time required for our major products. We also formulate action plans 
for the recovery teams to achieve early recovery.
Buildings and facilities departments
We conduct earthquake countermeasures for our buildings and 
facilities, in anticipation of a Nankai Trough Megathrust Earthquake. 
We are promoting training for diagnose of buildings at each site, with 
developing a checklist for swift diagnosis of buildings on the spot in 
case of earthquakes. After the diagnosis, recovery teams implement 
recovery activities according to the set priorities, after inspecting 
infrastructure, supplemental facilities of buildings, and other facilities.
BCP training
We conduct BCP training every December for the purpose of 
resuming business as soon as possible in the event of a disaster. 
BCP training is designed to improve the effectiveness of BCPs by 
formulating recovery plans for the major businesses, organizing 
recovery teams and implementing recovery activities. To prepare for a 
situation where our internal network is unavailable, we conduct 
training on communicating with the emergency headquarters using IP 
wireless equipment and sharing information via the Internet.
Major initiatives related to business continuity plans (BCPs)
Major disaster control and disaster reduction activities
We have made a BCP for each of our departments. Each plan defines the initial response to be made and recovery 
procedures to be followed in case of emergency.
Implementation of the joint disaster prevention drill
In anticipation of a Nankai Trough Megathrust Earthquake, we are 
implementing the company-wide Disaster Prevention Drill as a joint 
drill for domestic Group companies. The drill includes training for 
evacuation, confirmation of employees’ safety, incipient stage 
firefighting, and inspection of damage caused to facilities and 
equipment and is designed for early recovery in the event of an 
emergency.
Measures against storm and flood damage
Recently, climate change has been causing more extensive storm 
and flood damage. In response, we will work to minimize damage by 
making disaster-specific timelines for each of our business locations 
and checking local hazard maps annually, etc.
Raising employees’ awareness of disaster prevention
In order to enhance the disaster response capabilities of our employees 
and foster our business continuity, we distribute to employees copies 
of the booklet titled “NGK Spark Plug Disaster Prevention,” which 
shows the action guidelines to be followed in the event of a disaster.
Risk Management Policy
Promotion system
Business Continuity Management (BCM)
Company-wide risk management
Identify risks
List the related risks for each operational process
Analyze the impact of risks, probability of their 
materialization and how measures are taken against them
Make analysis based on the evaluation results provided by 
the Business Management Dept. and other departments in 
charge of the risks
Evaluate and prioritize the risks based on the analysis 
results
Based on the risk analysis results, select the candidates for 
priority risks
Select particularly significant risks (priority risks) and 
departments in charge of the risks
The Risk Management Committee selects the priority risks and the 
departments in charge of the risks.
Plan, implement and monitor priority risk reduction activities
The departments in charge of the risks plan and conduct 
risk reduction activities and the Business Management 
Dept. monitors the activities.
Evaluate the risk reduction activities to give 
instructions for improvement as needed
The results of the risk reduction activities are reported to the 
Risk Management Committee, which evaluates the level of 
achievement and gives instructions for improvement as needed.
Information transmission training between 
sales offices and the emergency headquarters
Report session at the emergency 
headquarters
Evacuation training (Komaki Plant)
Evacuation training (Nagoya Plant)
NGK SPARK PLUG CO., LTD. Integrated Report 2022
49
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Compliance
With recognition that our company is a member of society, we enhance corporate ethics and understand the spirit and 
meaning of laws, company regulations, international rules, and social norms in order to appropriately meet social demand and 
become a company trusted by the international community.
Action 
Guidelines
  We not only comply with laws and regulations, but also act in good faith with common sense and responsibility as a member of society.
  We regularly educate and raise the awareness of all our employees to impart a high level of ethics and correct knowledge, with which 
they can act voluntarily to prevent a violation.
  Should a violation occur, we will promptly investigate the causes and take remedial actions. We will strive to take appropriate 
countermeasures to prevent recurrence and fulfill our accountability.
In order to enhance compliance, we established the Compliance Committee chaired by the Representative Director.
This committee conducts activities to prevent noncompliance issues. It will also give instructions about the measures to be taken in 
the event of a noncompliance incident and monitor the implementation of the measures. Moreover, it provides compliance education 
and conducts awareness-raising activities targeting both executives and employees while also providing related information and raising 
employees’ compliance awareness through designated compliance facilitators at each department.
We are striving to prevent corruption in line with the statement made in our Corporate Code of Conduct: “We shall promote fair, 
transparent, free competition and sound trade. We shall also ensure that our relationships and contacts with government 
agencies and political bodies are of a sound and proper nature.”
We issued the Compliance Guidebook in 2012, in which we set the rules concerning the prevention of corruption, including 
the prohibition of involvement in political contributions or bribery, and made employees aware of these rules. Subsequently, in 
2013, we issued the Conduct Guidelines Concerning the Giving and Receiving of Gifts and Entertainment to raise employees’ 
awareness of the issues and prevent them from becoming involved in misconduct.
Further, in 2016, we signed the UN Global Compact, openly reaffirming our commitment to preventing corruption. We also 
confirm that the content and use of charitable donations do not violate the law.
We are thus working to prevent corruption in line with the guidelines and others. We respond to any violations of the anti-
corruption rules mainly through the Compliance Committee. Our overseas Group companies are also taking action to prevent 
corruption, especially to prohibit and prevent bribery of civil servants, including providing employees with related education and 
conducting surveys on local laws. We also request that suppliers refrain from acts of bribery through our CSR and Sustainability 
Procurement Guidelines. In FY2021, there were no violations of related laws and regulations across the Group.
Taking seriously our violation of the Anti-Monopoly Act of Japan, as uncovered in FY2014, we have established a system to promote 
compliance with competition laws and to ensure legal compliance both within and outside the country.
In Japan, we formulated the Anti-Monopoly Act Compliance Manual and distributed copies to employees while holding a range of 
related seminars internally for both executives and employees. Moreover, we have introduced an in-house e-mail inspection system to 
monitor and prevent recurring violations of the competition law.
Our overseas Group companies are required to report the activity status regarding compliance with competition laws to NGK 
SPARK PLUG on a regular basis. In addition, the company’s teams in charge of affairs concerning competition laws and compliance 
visit the Group companies, where they audit the companies’ compliance systems and implementation status and check whether local 
employees are sufficiently aware of the related rules. Seminars featuring guest speakers are also held.
We will continue our education and auditing activities to ensure compliance with competition laws both in Japan and abroad.
To raise employees’ awareness and knowledge regarding compliance, we are continuing to educate them by using the Compliance 
Guidebook, which summarizes the rules concerning companies and society, and the Compliance Newsletter, which provides specific 
examples of compliance issues that could arise in our daily operations, in addition to holding level-specific and theme-specific training.
Moreover, in order to check employees’ level of understanding about the corporate rules and systems and to examine the 
corporate culture and identify compliance risks, we conduct a questionnaire survey on compliance targeting employees. In FY2021, we 
conducted a questionnaire targeting about 8,800 employees in the domestic group companies, with a response rate of 83%. In order to 
promote improvement, the survey results are fed back to each workplace with the interviews to the departments having tasks.
We comply with domestic laws and regulations based on the Foreign Exchange and Foreign Trade Act in accordance with the 
multilateral export control regime (MECR) established for international peace and safety. In addition, we have established related internal 
rules and an in-house export control organization.
We also conduct awareness-raising and inspection activities targeting departments engaged in export control, thereby ensuring 
and enhancing our export control in compliance with the related laws and regulations. We are working to prevent the destabilization of 
international affairs by focusing on preventing the outflow of sensitive technology as well as cargo that can be diverted to military use.
We have established the Corporate Ethics Helpline as an internal reporting system available to employees and suppliers seeking consultation and 
making reports regarding compliance. We have worked to improve user convenience by establishing channels not only inside the company but 
also via an external expert service provider and enabling employees and suppliers to seek consultation and make reports also outside work hours 
and on holidays. This service can be used anonymously.
Regarding consultations and reports received, facts are investigated with discretion so that the reporting employee or supplier is neither 
identified nor feels uncomfortable, and if problems are confirmed, they are dealt with promptly.
In FY2021, there were 41 consultations and reports, including those from employees of Group companies and those related to labor affairs 
and internal regulations, and we promptly took corrective actions for the identified problems.
We are continuously working to make the helpline service widely known by measures such as introducing it in training, putting up related 
posters and distributing carrying cards describing the service.
We have also created a system for consultations and reports at Group companies outside Japan, establishing channels at respective 
companies.
Labor and management work together to prevent harassment in the workplace. We offer consultation services to people facing harassment 
through the contact point jointly established by labor and management at each of our plants and via the Corporate Ethics Helpline. The Anti-
Harassment Committee promptly examines issues reported through the contacts and checks facts. It then takes corrective action and gives 
instructions as needed. The results of the action taken are reported to the Compliance Committee. Other matters related to human rights are 
handled by the Compliance Committee.
The effectiveness of the compliance system, including measures against harassment, is periodically reviewed and reported to the CSR and 
Sustainability Committee for confirmation.
Corporate Ethics Helpline
Anti-Harassment Committee
Compliance Policy
Promotion system
Prevention of corruption
Activities concerning competition laws
Compliance education and awareness raising
Export control
Educational tools
Education and 
training 
Awareness survey
Compliance 
check
Compliance Committee
Board of Directors
CSR and Sustainability Committee
Disciplinary Committee
Group companies
Internal Auditing Ofﬁce
Corporate Ethics Helpline
(Inside and outside the company)
Expert Committee
NGK SPARK PLUG CO., LTD.
Labor union
Plant liaison staff and division in 
charge of laws and regulations
Compliance promotion system
Recommendation
Audit
Reporting
Cooperation
Reporting
Reporting
Consultation
Consultation
Consultation 
and 
reporting
Suppliers
Consultation 
and 
reporting
Compliance Committee Secretariat
(Anti-Harassment Committee)
P.40 Respect for Human Rights
NGK SPARK PLUG CO., LTD. Integrated Report 2022
50
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

4
page 51 
Financial/
Corporate 
Information
C O N T E N T S
52 Financial Results Highlights for the Past 11 Years
53 Global Network
54 Corporate Profile and Stock Information
55 Initiatives/External Evaluation
NGK SPARK PLUG CO., LTD. Integrated Report 2022
51

(Millions of yen)
(Fiscal year)
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Revenue
284,746
302,798
329,758
347,636
383,272
372,919
409,912
425,013
426,073
427,546
491,733
Operating income (loss)
24,478
23,754
51,661
62,196
66,284
53,595
67,279
58,385
48,447
47,389
75,512
Ordinary income (loss)
23,740
27,674
54,960
67,907
64,483
55,559
69,094
59,258
—
—
—
Profit (loss) attributable to owners of the parent
25,524
20,909
32,704
36,753
30,815
25,602
44,335
42,638
33,698
38,367
60,200
Capital expenditures
14,004
24,012
41,034
36,372
45,339
36,328
37,591
56,587
51,004
33,444
29,589
Depreciation
15,438
12,798
11,567
13,337
16,834
19,601
20,920
23,979
31,952
34,700
37,940
R&D expenses
16,036
17,100
19,400
21,337
23,123
23,416
25,283
28,072
28,315
26,115
23,685
Cash flows from operating activities
21,079
26,194
54,697
36,593
56,465
49,764
65,707
43,704
59,787
63,397
71,910
Cash flows from investing activities
(15,850)
(15,442)
(61,148)
(12,865)
(82,331)
(53,410)
(26,422)
(48,380)
(52,926)
(42,523)
10,234
Free cash flows
8,507
8,456
3,541
13,995
(25,866)
6,335
29,636
(21,356)
4,627
41,398
69,713
Dividend payout
4,789
4,788
5,223
7,181
8,487
9,055
10,823
14,601
14,435
12,230
20,792
Total equity
235,613
268,309
302,793
343,380
341,044
354,710
388,115
401,505
399,737
451,626
517,988
Total assets
340,295
366,489
458,148
485,497
526,103
563,801
599,972
629,417
663,374
771,293
823,181
Interest bearing debt
37,399
27,418
57,339
46,153
80,212
99,275
98,115
110,755
152,946
197,194
165,268
(Yen)
Earnings (losses) per share
117.25
96.06
150.26
168.88
141.60
119.44
209.37
204.74
163.06
188.59
296.04
Equity attributable to owners of the parent per share
1,075.24
1,223.41
1,381.38
1,566.80
1,557.16
1,660.06
1,837.46
1,917.04
1,946.10
2,206.18
2,530.01
Cash dividends per share
22.00
22.00
28.00
36.00
42.00
42.00
60.00
70.00
70.00
60.00
102.00
Operating income ratio (%)
8.6
7.8
15.7
17.9
17.3
14.4
16.4
13.7
11.4
11.1
15.4
Return on Sales revenue (%)
9.0
6.9
9.9
10.6
8.0
6.9
10.8
10.0
7.9
9.0
12.2
Gross profit on sales (%)
25.1
24.2
32.6
35.8
35.6
33.0
34.6
33.8
31.4
30.5
31.8
ROE (Return on equity) (%)
11.3
8.4
11.5
11.4
9.1
7.4
12.0
10.9
8.4
9.1
12.5
ROA (Return on assets) (%)
7.5
5.9
7.9
7.8
6.1
4.7
7.6
6.8
5.1
5.0
7.3
ROIC (Return on invested capital) (%)
6.5
5.8
11.0
11.6
11.4
8.5
10.0
8.2
6.3
5.5
7.9
Equity ratio (%)
68.8
72.7
65.6
70.2
64.4
62.5
64.3
63.4
59.7
58.2
62.5
Total asset turnover (%)
0.8
0.9
0.8
0.7
0.8
0.7
0.7
0.7
0.8
0.6
0.6
Dividend payout ratio (%)
18.8
22.9
18.6
21.3
29.7
35.2
28.7
34.2
42.9
31.8
34.5
Financial Results Highlights for the Past 11 Years
J-GAAP
IFRS
NGK SPARK PLUG CO., LTD. Integrated Report 2022
52
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

NGK SPARK PLUGS (U.S.A.), INC. 
(WEST VIRGINIA FACTORY)
NGK SPARK PLUGS (U.S.A.), INC. 
(Headquarters)
NTK TECHNOLOGIES, INC.
NGK SPARK PLUGS SA (PTY) LTD
U.S.A. TECHNICAL CENTER
NGK SPARK PLUGS (U.S.A.) 
HOLDING, INC.
BUJIAS NGK DE MEXICO S.A. DE C.V.
BRASIL TECHNICAL CENTER
CERAMICA E VELAS DE 
IGNICAO NGK DO BRASIL 
LTDA.
NGK SPARK PLUG (AUSTRALIA) PTY. LTD.
PT NGK BUSI INDONESIA
NGK SPARK PLUGS MALAYSIA BERHAD
NGK SPARK PLUGS
(INDIA) PVT. LTD.
NGK SPARK PLUG 
MIDDLE EAST FZE
HEADQUARTERS
NGK SPARK PLUGS (VIETNAM) CO., LTD.
NGK SPARK PLUGS 
(PHILIPPINES), INC.
TAIWAN NGK 
SPARK PLUG 
CO., LTD.
NGK SPARK PLUG (SHANGHAI) 
TRADING CO., LTD.
NGK SPARK PLUG 
(SHANGHAI) CO., LTD.
WOOJIN TECHNICAL CENTER
WOOJIN INDUSTRY CO., LTD.
NTK TECHNICAL CERAMICS KOREA CO., LTD.
CHANGSHU NGK SPARK PLUG CO., LTD.
NGK SPARK PLUGS (THAILAND) CO., LTD.
SIAM NGK SPARK PLUG CO., LTD.
NGK SPARK PLUGS (ASIA) CO., LTD.
NTK CORPORATION ASIA CO., LTD.
LLC NGK SPARK PLUGS 
(EURASIA)
EUROPE TECHNICAL CENTER
NGK SPARK PLUG EUROPE GmbH
NGK SPARK PLUGS (UK) LTD.
NGK SPARK PLUGS
(FRANCE) S.A.S.
(France Factory)
NGK SPARK PLUGS
(FRANCE) S.A.S.
(Headquarters)
CAIRE Inc.
Wells Vehicle Electronics, L.P.
NGK SPARK PLUGS 
CANADA LIMITED
Headquarters
Manufacturing & 
sales organization
Sales organization
Technical center
Holding company
Others
NICHIWA KIKI CO., LTD.
NITTOKU DENSHI CO., LTD.
NITTOKU ALPHA SERVICE CO., LTD.
Satsuma Plant
FUKUOKA SALES OFFICE
HIROSHIMA SALES OFFICE
OSAKA SALES OFFICE
Headquarters & Nagoya Plant
HAMAMATSU LIAISON OFFICE
KAMIOKA CERAMIC CO., LTD.
ATSUGI LIAISON OFFICE
TOKYO BRANCH
SAITAMA LIAISON OFFICE
NAGANO LIAISON 
OFFICE
UTSUNOMIYA LIAISON OFFICE
NTK CERATEC CO., LTD.
SENDAI SALES OFFICE
SAPPORO SALES OFFICE
NITTOKU SMILE CO., LTD.
Sharing FACTORY Co., Ltd.
ignArt CO., LTD.
Headquarters/Plant
Sales ofﬁce
Group company
Komaki Plant
CERAMIC SENSOR CO., LTD.
NTK CERAMIC CO., LTD.
Spark Tec WKS CO., LTD.
CECYLLS Co., Ltd.
MORIMURA SOFC TECHNOLOGY Co., Ltd.
NTK Medical CO., LTD.
NTK Cutting Tools CO., LTD.
Ise Plant
NANSEI CERAMIC CO., LTD.
Domestic Network (As of July 1, 2022)
Global Network (As of July 1, 2022)
Global Network
Domestic Network
Global Network
NGK SPARK PLUG CO., LTD. Integrated Report 2022
53
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

NGK SPARK PLUG CO., LTD.
Headquarters 
 1-1-1 Higashisakura, Higashi-ku, Nagoya 
461-0005, Japan
URBANNET NAGOYA NEXTA Bldg.
Established   
October 1936
Number of employees 
Non-consolidated: 3,668
 
  
Consolidated: 16,145
Paid-in capital
47,869 million yen
Total number of  
authorized shares
390,000,000
Total number of issued 
shares
204,175,320
Listed market
Tokyo Stock Exchange and Nagoya 
Stock Exchange (First Section)
* Transitioned to Tokyo (Prime Market) and Nagoya 
(Premier Market) from April 2022.
Shareholder registry 
administrator
Mitsubishi UFJ Trust and Banking 
Corporation
Accounting auditor
KPMG AZSA LLC
Number of shareholders
44,810
Name of shareholder
Number of 
shares held
(thousand)
Ownership ratio (%)
The Master Trust Bank of Japan, Ltd.  
(trust account)
29,935
14.68
Meiji Yasuda Life Insurance Company
16,794
8.23
The Dai-ichi Life Insurance Company, Limited
16,752
8.21
Custody Bank of Japan, Ltd. (trust account)
9,098
4.46
National Mutual Insurance Federation of 
Agriculture Cooperatives
7,404
3.63
Nippon Life Insurance Company
3,563
1.74
TOTO Ltd.
3,433
1.68
JP MORGAN CHASE BANK 385632
3,349
1.64
JPMorgan Securities Japan Co., Ltd.
3,158
1.54
MUFG Bank, Ltd.
2,920
1.43
Breakdown of
shareholders
by type
Financial Institutions
26.00%
(53,083 Thousand 
Shares)
Individuals and Others 
in Japan
14.74%
(30,094 Thousand Shares)
Treasury Stock
0.16%(325 Thousand Shares)
Other Corporations in Japan
6.64%(13,561 Thousand Shares)
Foreign Corporations 
and Individuals
25.77%(52,614 Thousand 
Shares)
Securities Companies
4.44%
(9,067 Thousand Shares)
Trust Services
22.25%
(45,426 Thousand 
Shares)
0
5,000
10,000
20,000
15,000
(Number of employee)
2020
(FY)
2019
2018
2017
2021
15,322
15,994
16,430
16,391
16,145
Corporate data (As of March 31, 2022)
Organization chart (As of June 24, 2022)
<Corporate Domain>
<Business Domain>
<BP Company>
Breakdown of shareholders by type (As of March 31, 2022)
Major shareholders (As of March 31, 2022)
Number of shares and shareholders (As of March 31, 2022)
Trading volume
Stock price of NGK SPARK PLUG
The Nikkei 225
(Yen)
(Yen)
4,000
3,200
2,400
1,600
800
0
30,000
24,000
18,000
12,000
6,000
0
60
50
40
30
20
10
0
(Million shares)
2016
(Year)
7
8
9 10 11 12
2017
1
2
3
4
5
6
7
8
9 10 11 12
2018
1
2
3
4
5
6
7
8
9 10 11 12
2019
1
2
3
4
5
6
7
8
9 10 11 12
2020
1
2
3
4
5
6
7
8
9 10 11 12
2021
2022
1
2
3
4
5
6
10 11 12 1
2
3
4
5
6
7
8
9
Note: Trading volume above does not include data for trading via the ToSTNet system.
Stock price and trading volume (As of June 30, 2022)
Number of employees at work (consolidated) (As of March 31, 2022)
Note: Ownership ratio above is calculated excluding treasury stock.
Implant Dept.
Business Transformation Div.
Strategic Planning Dept.
Logistics Dept.
SCM Solutions & Services Company
Procurement Dept.
Global Procurement Company
Accounting & Finance Dept.
FP & A Company
Information Systems Dept.
IT Systems Company
Planning Control Dept.
Strategic Engineering Planning Dept.
R&D Dept.
R&D Div.
Operation Dept.
Medical Business Dept.
Utility Business Dept.
Venture Investment Dept.
Business Strategy Dept.
Board of Directors
Audit and Supervisory Committee Office
President
Corporate Management Committee
Corporate Officer and Company President Meeting
General Administration Dept.
Environment & Safety Management Dept.
Business Support Company
Intellectual Property Dept.
Corporate Quality Control Dept.
Personnel Labor Dept.
HR Development Dept.
HR Communication Company
Corporate Communication Dept.
Strategic Planning Dept.
Production Engineering Development Dept.
Production Engineering Company
Production Engineering Control Dept.
Production Engineering Dept. 1
Production Engineering Dept. 2
Equipment Maintenance Dept.
Operation Control Dept.
Marketing & Strategy Dept.
Mobility Business Company
OEM Sales GHQ
Sales Engineering Dept.
AM-GHQ
Japan Sales RHQ
Strategic Procurement Dept.
Planning Dept.
Sales and Marketing Dept.
Machining Technology Company
Engineering Dept.
Quality Control Dept.
Corporate Profile and Stock Information
Audit and Supervisory Committee
Secretarial Dept.
Digital Transformation Dept.
Corporate Strategy Dept.
Business Management Dept.
Financial Strategy Dept.
Sustainability Strategy Dept.
Mirai Creation M&A Dept.
Human Resources Strategy Dept.
Global Strategy Div.
Management Auditing Dept.
Internal Auditing Dept.
Global Group Governance Div.
R&D Collaboration Dept.
Mobility Business Dept.
Business Creation Company
IGNITE Company
Strategic Planning Dept.
Product Engineering Dept.
Process Engineering Dept.
Business Management Dept.
Quality Assurance Dept.
Related Products Dept.
Sensor Beyond Company
Strategic Planning Dept.
Sensor Engineering Div.
Product Design Dept.
Process Development Dept.
Design Development Dept.
Operation Control Dept.
PKG Solution Dept.
Quality Assurance Dept.
Planning Dept.
Sales and Marketing Dept.
Advanced Ceramics Company
Engineering Dept.
Quality Assurance Dept.
Energy Conversion Business Development Dept.
NGK SPARK PLUG CO., LTD. Integrated Report 2022
54
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

Initiatives
In disclosures in the Integrated Report and on the website, we are working to enhance the content by referring to 
international disclosure frameworks.
We have posted on our website a table comparing our disclosure framework with the industry-specific standards 
provided by the U.S. Sustainability Accounting Standards Board (SASB) and the GRI standards provided by the Global 
Reporting Initiative (GRI). Please visit our website indicated below.
https://ngkntk.disclosure.site/en/
SASB Content Index and GRI Content Index
* The inclusion of NGK SPARK PLUG CO., LTD. in any MSCI index, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement or 
promotion of NGK SPARK PLUG CO., LTD. by MSCI or any of its affiliates. The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names and logos are trademarks or 
service marks of MSCI or its affiliates.
(As of July 31, 2022)
Corporate evaluation of ESG investment (FY2021)
For other awards, evaluations, and past track record, please visit our website.
·  Dow Jones Sustainability  
Asia Pacific Index
·  MSCI JAPAN  
ESG SELECT LEADERS INDEX
·  FTSE4Good 
Index Series
·  PRIDE Index 2021 
Silver Rating
·  MSCI EMPOWERING  
WOMEN INDEX
·  FTSE Blossom Japan 
Index
·  S&P/JPX Carbon 
Efficient Index
·  2022 the Health & 
Productivity Stock 
Selection
·  FTSE Blossom Japan 
Sector Relative Index
·  SOMPO  
Sustainability Index
· Nadeshiko Brand
Major awards and evaluations (FY2021)
NGK SPARK PLUG Group participated in the UN Global Compact in November 2016.
The Global Compact sets out the voluntary action principles to be followed by companies. This 
initiative was proposed by Kofi Annan, the then secretary-general of the United Nations, in 1999 to 
address various issues facing the world, such as global warming, environmental problems and disparities 
in society. It was officially launched at the UN Headquarters in July 2000. In order to contribute to 
creating a sustainable society, the Group will conduct a range of activities as a good corporate citizen, 
supporting the Global Compact’s 10 principles set in the four areas of “human rights,” “labor,” 
“environment” and “anti-corruption.”
Representative Director President
Chief Operating Officer
Takeshi Kawai
·  Sustainable Development 
Goals 
(SDGs)
·  CDP
·  Women’s Empowerment 
Principles 
(WEPs)
·  Science Based Targets initiative 
(SBTi)
·  Task Force on Climate-related  
Financial Disclosures 
(TCFD)
·  Declaration of Partnership Building
NGK SPARK PLUG CO., LTD. Integrated Report 2022
55
About Us
Strategies for 
Value Creation
Foundation for 
Value Creation
Financial/Corporate 
Information
Introduction

URBANNET NAGOYA NEXTA Bldg. 1-1-1 Higashisakura, Higashi-ku, Nagoya 461-0005
https://www.ngkntk.co.jp/english/
Corporate Communication Dept. HR Communication Company
Phone: 81-52-218-6248
Editorial Note
Thank you for taking the time to read our Integrated Report 2022.
We have explained our business strategy and initiatives for sustainability to our shareholders, investors, and all other 
stakeholders through integrated reports since the first issue in FY2017. During this period, the business environment 
surrounding us has changed with the speed beyond our imagination, and furthermore, we are being asked to strengthen 
our responses to Environmental (E) and Social (S) issues due to the impact of the COVID-19 infection and Russia’s 
military invasion of Ukraine. We have prepared this report, focusing on more clearly communicating to stakeholders how 
we will tackle these environmental changes through our business activities.
We are promoting sustainability activities based on the eight priority issues (materiality). In the environment field, we 
made efforts to launch the internal carbon pricing system and the internal environmental fund, under the SX 
(Sustainability Transformation) Project launched last fiscal year, as well as start the environment-friendly product 
certification system. Additionally, in light of the increasing importance of human capital in recent years, we are 
strengthening our various training seminars and programs to develop “self-disciplined creative human resources” under 
the new personnel system.
Also, in 2020, we announced our long-term vision to break away from the business portfolio in which the ICE 
business accounts for 80% of our total revenue. In 2021, we formulated the Medium-term Management Plan (from 
FY2021 to FY2024) as the specific strategy to achieve the long-term vision. In this report, we have explained specific 
plans and progress to materialize the vision of what we want to be, including an improvement in efficiency and speed of 
management by the introduction of an in-house company system.
The ICE business is still our main business today, and we sometimes receive critical comments from investors for 
our repeated trial and error in developing new businesses. On the other hand, as the company holding the top share in 
spark plugs and sensors market in the world, we believe in the value only we can offer, such as the contribution to 
solving social issues through the dissemination and expansion of environmentally friendly products. Through this report, 
we hope you will understand our attitude to continuously promote activities toward realization of a sustainable society, 
while pursuing to transform our business portfolio in the long run.
We would sincerely appreciate your continued support for the NGK SPARK PLUG Group.
September 2022
Kenji Isobe
Executive Officer
Financial Strategy, Business Management, and Human Resources Strategy Depts., Global Strategy Div.
FP & A Company, Business Support Company, and HR Communication Company
Administrative Office of Integrated Report 2022 Project
NGK SPARK PLUG CO., LTD.