01
NGK REPORT 2022
CONTENTS
The NGK Group has been using unique ceramics technologies to  
create innovative products for over 100 years. 
We will continue offering surprising products that  
provide new value to the world.
89	 Financial and  
Non-Financial Highlights 
91	 11-Year Key Financial and 
Non-Financial Data
93	 NGK Group History
95	 Corporate Outline/  
Stock Information
96	 NGK Group/ 
Data by Area
97	 Third-Party Opinion 
98	 External Evaluation
45	 ESG Management
47	 Environmental
57	 Social
67	 Governance
83	 Dialogue with Outside Directors
09	 Message from the President
15	 Value Creation Process
17	 NGK Group Vision: Road to 2050
20	 Speaking with Key Persons Promoting Five Transformations
	
21	 Creating New Value
	
25	 Promoting DX to Accelerate Five Transformations
	
31	 Financial and Capital Strategies for  
Supporting Transformations
	
35	 Segment-Specific Strategies for Achieving Our Vision
	
	
37	 Environment Business Group
	
	
39	 Digital Society Business Group
	
	
41	 Energy & Industry Business Group
The NGK Group Value 
Creation Story
01
SECTION
03	 Greetings from Our Chairman
04	 NGK Group Philosophy
05	 About the NGK Group
Foundation that Supports  
the NGK Group’s  
Sustainable Value Creation
NGK Group  
Corporate Data
03
02
SECTION
SECTION
Introduction

02
NGK REPORT 2022
Editing Policy
The NGK Group positions the NGK Report 2022 as an important tool for communicating with our various 
stakeholders, including our shareholders and investors. To provide a structural understanding of the NGK 
Group’s corporate value and our future vision, we strive to introduce financial information, non-financial 
information, and information regarding our business strategy in a highly comprehensible format. During the 
creation of the NGK Report, we reference the Integrated Reporting Framework by the International 
Integrated Reporting Council (IIRC) and Guidance for Collaborative Value Creation by the Ministry of 
Economy, Trade, and Industry.
	
Furthermore, we provide details on our ESG information via the NGK Group 
Sustainability Website Data 2022.
Applicable Organizations
Applicability will vary with each organization. As such, applicable organizations 
are indicated in report articles and alongside the presented data.
Applicable Period
April 1, 2021 to March 31, 2022
About Forward-Looking  
Statements
Earnings forecasts and other 
forward-looking statements 
indicated in this report are 
based on available information 
and certain assumptions 
deemed reasonable at the time 
of creation. However, please 
note that it is possible actual 
results could differ from the 
statements presented in this 
report due to any number of 
factors.
Financial information
Non-financial information
Reports
Securities report
Report (shareholder newsletter)
Corporate Governance Report
NGK Report
Report combining important financial and non-financial information
Financial Results Briefing (for business partners)
General Meeting of Shareholders
Engagement with investors
Engagement with local community
Dialogue
WEB
How we communicate
Sustainability
Please scan the  
QR code for website
Corporate information
IR information
Please scan the  
QR code for website
Please scan the  
QR code for website

03
NGK REPORT 2022
The importance of sustainability for the global 
environment and society is increasing. 
Corporations today are expected to transform their 
business from a medium- and long-term approach 
while contributing to the resolution of social issues 
through their business activities. Amid such an 
operating environment, there is an increasing 
emphasis on the role of integrated reports that 
combine financial information with non-financial 
information related to long-term improvements in 
corporate value. Our Group publishes the NGK 
Report as a tool for promoting constructive 
dialogue with our stakeholders. We hope the NGK 
Report will provide a greater understanding of our 
medium- to long-term value creation story. 
	
The NGK Report 2022 introduces the 
characteristics and strengths of our Group with a 
particular focus on the NGK Group Vision: Road to 
2050. Through this report, we introduce how we 
are pursuing value creation towards achieving our 
Group vision.
	
The NGK Group Vision: Road to 2050, is 
designed to realize our philosophy of “Enriching 
Human Life by Adding New Value to Society” by 
outlining our future goals and the steps we must 
take to achieve those goals. The NGK Group 
Vision: Road to 2050 comprises our vision of a 
future society, the results of internal discussions on 
the ideal corporate image of the NGK Group, and 
the key points of transformation we must achieve 
as we head towards the future. Realizing this 
vision will require not only that we improve our 
unique ceramic technologies, but also that we 
implement fundamental changes in how we sell 
products and manage operations. In April 2022, 
we implemented major organizational changes. 
These changes will enable us to create new 
products and services that answer the needs of 
society while also accelerating initiatives to 
address sustainability issues and strengthen 
marketing.
	
In recent years, a sense of urgency concerning 
global warming has driven various initiatives 
related to carbon neutrality. The world is adopting 
digital advancements such as AI and IoT while 
also accelerating towards green and digital 
technologies. In such an environment, we will aim 
to be a company that contributes to the long-term 
development of society and achieves continue 
growth by expanding business in domains related 
to carbon neutrality and the digital society to 
support more enriched lifestyles. We will continue 
to fulfill our corporate social responsibilities as we 
strive to be a company that continuously 
generates new value.
	
We ask for the continued support and 
understanding of our stakeholders.
Greetings from Our Chairman
Becoming a corporate 
group that contributes to 
the development of  
society and achieves 
continued growth
Chairman

Visit the “About NGK” section of our website to read the NGK Group Philosophy.
https://www.ngk-insulators.com/en/info/philosophy/
The NGK Group Philosophy is a signpost that guides every employee 
of the NGK Group. Formulated in 2019 to mark our 100th anniversary, 
it encompasses our desire to use our proprietary ceramic technologies 
to contribute to future energy, environmental protection, and industrial 
progress, and to help people around the world live a happy, 
comfortable life.
NGK Group Philosophy
Our Mission
People    Embrace challenges and teamwork.
Product    Exceed expectations.
Management    Social trust is our foundation.
Quality of
Quality of
Quality of
Our Values
Enriching Human Life
by Adding New Value to Society.
Introduction
04
NGK REPORT 2022

05
NGK REPORT 2022
About the NGK Group
With ceramic technologies at our core, the NGK Group applies three 
strengths to engage in business operations. We contribute to the 
realization of carbon neutrality and a digital society by developing 
business related to the environment, digital society, energy & industry as 
we strive to meet the needs of society.
We use unique ceramic technologies to 
provide new value to society
NGK founding principle
The history of the NGK Group starts with a decision made by 
our first president, Kazuchika Okura.
	
1905 saw the rapid spread of electric power in Japan. 
Fragments of American-made insulators were brought to Nippon 
Toki. Engineers at Shibaura Seisakusho (currently Toshiba) were 
concerned that most of the special high-voltage insulators 
essential to power transmission facilities were expensive 
imported products. Impressed by Nippon Toki’s technological 
capabilities, Shibaura engineers requested the manufacturing of 
a domestic product. It was Okura, then a senior executive at 
Nippon Toki, who overcome objections within the company and 
led the company’s engagement in the insulator business. At the 
heart of this determination was the principle, “We do this for the 
sake of society’s future, and not for own profit.”
	
Nippon Toki overcame various technical difficulties to achieve 
commercialization of their insulators, which saw a rapid increase 
in sales. In 1919, the decision was made to make the insulator 
business an independent division. This marked the beginning of 
NGK Insulators, Ltd., the current NGK Group.
We have expanded our business globally since 
we first began exporting insulators in the 1930s. 
Today, we operate in some 20 countries, with 
more than 60% of our employees and 70% of 
our sales coming from overseas business.
Global  
expansion
1
STRENGTH
In 1921, we compared our insulators with 
American manufacturers and found that the 
quality of our insulators varied. Since then, our 
commitment to quality improvements has been 
passed down through the generations. Today, 
we are IATF16949 certified and continue 
working to improve quality.
Quality  
improvements
2
STRENGTH
The NGK Group  slogan “Surprising Ceramics.” 
We have continuously created innovative 
products based on our ceramic technologies, 
and we will continue to diversify our business 
by creating new value for the world.
Diversification
3
STRENGTH
We do this for the  
sake of society’s future,  
and not for own profit.
NGK Group background

06
NGK REPORT 2022
Contributing to carbon neutrality 
and a digital society
Separation membranes
Various sub-nanoceramic membranes that 
can separate a specific gas from a mixed 
gas and a specific liquid from a mixed liquid.
Zinc rechargeable batteries
Highly safe and high-capacity storage 
battery that can be installed indoors.
Wafer Products
High-performance composite wafers 
using our unique precision polishing 
technology and bonding technology.
Lithium-ion rechargeable batteries
EnerCera®
A compact, thin lithium-ion rechargeable 
battery with high energy density.
DCB*1 and AMB*2 substrates
Substrates for power modules with 
excellent reliability and thermal 
conductivity.
Expected product group to create the future
Introduction
For the future of the NGK Group
CN
For carbon  
neutrality
We will develop products used in various 
devices to help realize carbon neutrality 
such as high-precision CO2 separation 
and recovery devices and storage of 
renewable energy.
DS
For a  
digital society
We will develop new products to support the 
explosive evolution of digital technology such as 
maintenance-free IoT, advanced security, and 
the realization of next-generation high-speed, 
large-capacity communication networks.
*1 DCB: Direct Copper 
Bonding
*2 AMB: Active Metal 
Brazing

07
NGK REPORT 2022
SECTION01
The NGK Group 
Value Creation Story
09 Message from the President
15 Value Creation Process
17 NGK Group Vision: Road to 2050
20 Speaking with Key Persons Promoting Five Transformations
	
21 Creating New Value
	
25 Promoting DX to Accelerate Five Transformations
	
31 Financial and Capital Strategies for Supporting Transformations
	
35 Segment-Specific Strategies for Achieving Our Vision
	
	
37 Environment Business Group
	
	
39 Digital Society Business Group
	
	
41 Energy & Industry Business Group
Contents

08
NGK REPORT 2022
Creating 
Our Next Value
 Commitment to business structure transformation
 Progress of NGK Group Vision 
 Initiatives related to new business creation 
 Steadily promoting digital transformation (DX)
 Medium-term business portfolio forecast
 New challenges presented by business segment restructuring
Highlights of Section 01

09
NGK REPORT 2022
Message from the President
When I assumed the role of President, I embraced 
four goals aimed at implementing structural 
reforms that will prepare us for the coming times. 
First, I want to introduce and provide a progress 
report for each goal. 
	
My first goal is to produce results for more 
than 250 billion yen in capital investments we 
have conducted over the past three years. We 
made these investments to respond to increasing 
demand, particularly in automotive and 
semiconductor-related businesses. We are 
forecasting continuous gains in line with profit 
projections for both businesses. In addition to the 
recovery of the global automobile market, 
favorable conditions for semiconductor-related 
business resulted in steady growth in product 
shipments.
	
My second goal is to create new businesses 
and products that will support the future of the 
NGK Group. We are advancing Five 
Transformations under our vision through 2050. 
One of those reforms is the distribution of R&D 
budget mainly into two fields: carbon neutrality 
and a digital society.
	
My third goal is to promote globalization. The 
NGK Group has offices in 20 countries across the 
globe, with overseas sales exceeding 70% of 
Group net sales. I personally have exchanged 
opinions with customers and employees all over 
the world. I have hopes of promoting further 
globalism but this past year forced us to mostly 
rely on online interactions due to the impact of 
COVID-19. While it does depend on future 
conditions, I want to proactively interact with 
Four goals I outlined when I became President
Policies and progress towards achievement
Realizing the NGK Group Vision: Road to 2050
Launching Five Transformations and Implementing 
Major Organizational Reforms
Applying NGK Group strengths to resolve societal 
issues while achieving corporate growth
The world is on the cusp of dramatic changes as it faces a myriad of issues, including 
responding to global warming, the spread of new infectious diseases, and geopolitical fluidity. 
Amid such an environment, the NGK Group took our first step towards realizing the NGK 
Group Vision of contributing to carbon neutrality and a digital society.
	
We are working on Five Transformations that represent the core strategies of our vision. 
While we have just completed our first year of initiatives related to these reforms, more than 
ever I feel that the unique ceramic technologies we have cultivated for more than 100 years 
since our founding will contribute to the realization of our vision.
	
Our vision, Road to 2050, will not be a simple endeavor. However, I am increasingly 
confident that we can realize our goal of contributing to the resolution of societal issues and 
achieving sustainable growth for the NGK Group.

10
NGK REPORT 2022
The NGK Group Value Creation Story
Profile
Joined in 1983. Has served in numerous roles in the 
company, including working in overseas sales and 
marketing in the Energy Infrastructure Business 
Division before becoming Manager of sales and 
marketing department of the NAS Battery Business 
Division, serving as President of an overseas 
subsidiary, Manager of overseas sales and marketing 
department for the Ceramic Products Business Group, 
and as Group Executive of the Energy Infrastructure 
Business Group. Kobayashi assumed the role of 
President of the NGK Group in April 2021. 
	
Kobayashi will lead the charge towards realizing 
the NGK Group Vision based on a philosophy of 
“creating a company that is a source of pride and trust 
for all our stakeholders.” 
President

11
NGK REPORT 2022
person in-person and work to build stronger 
relationships.
	
My fourth goal is to develop the NGK Group 
into a corporation that instills pride in its 
employees and earns the trust of all our 
stakeholders. We have continued efforts to reform 
our corporate culture and become a transparent 
and enjoyable workplace where everyone 
embraces a challenging spirit and exerts their 
creativity. For example, over the past year, I have 
created opportunities to personally speak to 
employees about the NGK Group Vision. By 
sharing this vision with many so employees, we 
are cultivating a culture that invites free and open 
discussions that is not limited by age or seniority. I 
can feel the growing sense of motivation towards 
these reforms. Reforming organizational culture is 
not something that can be done overnight but we 
will aim to be a corporation that is trusted by all 
our stakeholders.
Message from the President
Business environment surrounding NGK Group and strengths
Carbon neutrality and a digital society are tailwinds for growth
The NGK Group Vision outlines our ideal future as 
being a company that uses our unique ceramic 
technologies to contribute to carbon neutrality 
and a digital society. The current NGK Group 
business structure is weighted heavily towards 
products used in the internal combustion engines 
of gasoline and diesel vehicles. This includes 
products such as ceramic substrates for purifying 
automobile exhaust. With the continued growth of 
electrified vehicles, our most important and 
highest priority issue is determining how we will 
reform our business structure and maintain and 
expand revenues. With the NGK Group 
possessing such unique ceramic technologies,  
I believe this change will serve as a tailwind for 
growth for our Group.
	
For example, storage cells are critical to the 
realization of carbon neutrality. NGK Group 
technology includes products capable of meeting 
a diverse range of needs in the storage cell 
domain. These products include our NAS® 
batteries, which are capable of storing megawatts 
of power, and our zinc rechargeable batteries, 
which offer high capacitance and safety. Other 
technology and products include sub-nano 
ceramic membranes capable of separating and 
recovering CO2, and solid oxide electrolysis cells 
(SOEC).
	
The NGK Group is also highly competitive in 
the digital society domain. Our product line 
includes EnerCera®, an ultra-compact, ultra-thin 
lithium-ion rechargeable battery that achieves high 
output and high capacitance. We also offer 
high-performance wafers that support next-
generation high-speed, high-volume 
communications. We are able to provide new 
value in the age of an ultra-smart society that 
continues to adopt AI, IoT, and high-speed 
communications networks such as 5G and 6G. 
We also have accumulated technology and 
knowhow related to the integration of electronics 
systems into automobiles, including advanced 
driving assistance systems (ADAS) and network 
connections designed to support growing IoT 
applications. I believe the application of this 
technology and knowhow will open a path to 
significant opportunities for our Group.
Specific policies for realizing the NGK Group Vision
Launching Five Transformations and  
making solid progress towards future goals
Under the NGK Group Vision: Road to 2050, we 
started work on Five Transformations that 
representing the core of this vision: (1) ESG 
Management; (2) Profitability Improvement; (3) 
Research & Development; (4) Commercialization; 
and (5) Digital Transformation (DX). NGK has 
several strengths beyond our technology. One of 
these strengths is the spirit of “We do this for the 
sake of society’s future, and not for own profit.” 
This spirit dates back to the origins of NGK when

12
NGK REPORT 2022
Accelerating reforms 
by looking to the  
future and leading  
with innovation.
it was founded as a member of the Morimura 
Group*1.
	
More than 100 years ago, our company was 
created to resolve societal issues in Japan related 
to the dissemination of electricity. Supported by 
that spirit, we have continued to achieve growth 
throughout changes such as diversification and 
globalization. Along the way, we cultivated a DNA 
for taking on new challenges   without ever giving 
up. The NGK Group will continue to embrace the 
spirit of “doing for the sake of society’s future, and 
not for own profit” and our DNA for taking on new 
challenges. We will apply these strengths to turn 
the major changes we face in society into a 
tailwind that drives us forward.
	
The following is a report on progress after the 
first year of our reform efforts.
ESG management 
ESG management is a reform initiative that is 
directly linked to the operating objectives 
(purpose) of the NGK Group. Since our 
establishment some 100 years ago, NGK has 
engaged in management practices rooted in the 
current concept of ESG: resolving social issues 
through our products and services. This 
commitment remains unchanged today and will 
continue into future. I believe we must respond to 
the demands of society with a modern 
perspective.
	
As part of our environmental initiatives (the “E” 
in ESG), in the spring of 2021 we formulated the 
NGK Group Environmental Vision  and set a goal 
of contributing to carbon neutrality through our 
products and services while working to achieve 
net zero CO2 emissions by 2050. In addition to 
adopting renewable energy at our domestic and 
overseas sites, we will also review our production 
methods and switch to alternative fuels to reduce 
CO2 emissions.
	
We started collaborative efforts with Ena City 
in Gifu Prefecture and Abashiri City in Hokkaido 
Prefecture to locally produce and consume 
electricity involving the use of NAS batteries . We 
also established new local electric power 
companies “Ena Electric Power” and “Abashiri 
Electric Power”. Utilizing renewable energy such 
as solar power and wind power, we will promote 
electricity self-consumption at the regional level. 
We are also aiming to improve safety and 
security by taking measures against power 
outages in the event of a disaster, and to reduce 
environmental load. We plan to expand this 
model nationwide to contribute to the expansion 
of renewable energy use.
	
In line with the recommendations of the Task 
Force on Climate-Related Financial Disclosures 
(TCFD), in April 2022 we published information to 
our website on the status of NGK Group efforts 
related to four items, governance, strategy, risk 
management, and metrics and targets.
	
To address issues related to society (the “S” in 
ESG), we are focusing on diversity based on the 
belief that encouraging the active participation of 
diverse human resources will lead to the creation 
of new value. When I took office as President,  
I indicated “promoting globalization” as one of the 
measures I planned to undertake, and I am 
actively promoting the hiring of local human 
resources at our overseas locations. I lived abroad 
The NGK Group Value Creation Story

13
NGK REPORT 2022
Message from the President
for a long time, including being assigned 
overseas, and have personally experienced the 
importance of respecting diversity in different 
cultures. I believe accepting and collaborating 
with people of diverse backgrounds and values is 
the key to promoting globalization. We are also 
working to create a motivating work environment 
for employees, including by expanding our system 
for promoting women’s workplace advancement 
and providing diverse career paths that enable 
employees to pursue growth autonomously.
	
We are addressing governance (the “G” in 
ESG) by developing a system that enables prompt 
and decisive decision-making while ensuring 
transparency and fairness that gives due 
consideration to various stakeholders. From this 
fiscal year, we established an ESG Management 
Committee, on which I serve as chairman, to take 
a universal approach to addressing ESG issues 
facing the NGK Group. We also established a 
system to ensure the Board of Directors 
appropriately supervises these activities.
Profitability improvement
To improve profitability, we will aim to further 
increase our earning power over the next five 
years and create a virtuous cycle of securing 
profits and investing. 
	
As a measure to further improve profitability, in 
2021 we started “Manufacturing ∞ (Chain) 
Innovation”. We will use digital technology to 
promote manufacturing visualization and global 
collaborations with a focus on production 
innovation activities that bridge the gap between 
the ideal and real situations along the 
manufacturing chain. We will also implement cost 
reduction activities that improve manufacturing 
costs by reducing losses at each factory. 
R&D and commercialization
R&D and commercialization are the core reforms 
of the NGK Group Vision. We set a goal of “New 
Value 1000”, which aims to generate sales of 100 
billion yen from new products and new 
businesses by 2030. To achieve this goal, we will 
accelerate the creation and business development 
of products that contribute to carbon neutrality 
and a digital society. In particular, we will 
emphasize the speed from development to 
commercialization and market engagement. We 
will develop a system that leads to the 
development of innovative ceramic materials in a 
short period of time. This includes adopting 
practical applications for materials informatics*2, 
which involves creating a database from the 
massive amounts of experimental data we 
possess as a corporate asset, and combining the 
database with AI technology. 
DX (digital transformation)
To promote DX, in April 2021, we established the 
Digital Transformation and Innovation Department 
as a department specializing in DX to unify efforts 
related to digitalization, and to promote a 
company-wide change in thinking regarding data 
utilization. In April of this year, we formulated and 
published the NGK Group Digital Vision.
*1 One of the world’s largest ceramics corporate groups, which originated 
from Morimura Gumi, a ceramics trading company.
*2 A method for developing materials using information processing 
technologies such as big data, AI, and machine learning.
Restructuring and establishment of new organizations
Implemented strategy reorganizing four business groups into three, 
and established Corporate NV Creation
One of our organizational restructuring initiatives is 
the review of business segments. Based on the 
business domains related to carbon neutrality and 
a digital society, which we position as core areas 
in our vision, we reorganized our previous 
structure of four business groups into a structure 
with three business groups. The Environment 
Business Group will promote business in new 
markets such as decarbonization technology in 
addition to its mainstay automobile-related 
business. The Digital Society Business Group 
promotes businesses related to a digital society, 
such as semiconductors, electronic components, 
and various electronic devices. The Energy & 
Industry Business Group promotes businesses 
related to carbon neutrality, such as energy 
storage, industrial equipment and products, and 
insulators. While increasing synergy between 
departments, we are combining organizations to 
implement reforms from a different perspective.

14
NGK REPORT 2022
Working toward new value 
creation by cultivating a 
culture that accepts 
failures and encourages a 
challenging spirit.
To all our stakeholders
The NGK Group has set out on a new path towards our  
“Third Foundation”
Under the NGK Group Vision: Road to 2050, in 
2021 we started many reforms, including 
reorganizing and establishing new departments 
within the organization. This represents the start of 
a long-term and dramatic new strategy at a time 
when we face major changes in our operating 
environment. I regard this major milestone as our 
“Third Foundation.” Moving forward, the NGK 
Group will continue to transform and take on 
challenges with flexibility and a sense of speed. We 
will move forward towards becoming a company 
that is trusted by our stakeholders. 
	
We would like to ask our stakeholders for your 
continued support.
	
As another organizational restructuring 
initiative, to accelerate commercialization we 
established a new marketing unit, the Corporate 
NV Creation, to lead the New Value 1000. While 
the NGK Group has unwavering strengths in 
technology, we also recognize our challenges 
related to marketing, including approaching 
markets and disseminating information. We will 
speed up the creation of new products and our 
commercialization process by promptly identifying 
needs, encouraging inter-departments collabora-
tions and external cooperation on the develop-
ment of products and the provision of services 
and systems.
	
We started this spring with a system of about 
100 people by gathering various human resources 
from each business groups and head office 
departments. We have begun to extract and 
propose technologies and themes to be tackled. 
This is an unprecedented attempt, and our efforts 
may fail. 
	
As I stated, the NGK Group embraces its DNA 
for taking on new challenges. At the same time, it 
is also true that many employees are incredibly 
cautious and tend to be afraid of failure. Not all 
challenges work, but the insatiable determination 
to take on new challenges is the source of new 
ideas and new value. To achieve unprecedented 
change, I believe we must evaluate challenges and 
create a corporate culture that tolerates failure. I 
want to use the efforts of the Corporate NV 
Creation as an opportunity to adopt such a culture.
The NGK Group Value Creation Story

Value Creation Process
Competitive advantage
Management platform
Financial capital
Sound financial position
 Equity ratio: 59.3%
 Total assets: 982.8 billion yen
 Operating income margin: 16.4% 
 Free cash flow: 48.5 billion yen 
Intellectual/manufactured capital
Accumulated technologies and 
manufacturing know-how
 Huge amount of technical data for about 100 years
 R&D expenses: 300 billion yen by 2030
 Number of patents held 
Japan 3,374   Overseas 4,444
 Capital investment: 38.1 billion yen
Human capital
Group human resources  
across the globe
 Number of employees linked by  
our Group philosophy: 20,099
 Overseas employee ratio: 63% 
Social/relationship capital
Close relationships with  
customers and suppliers
 Wide range of customer industries 
 Communication with shareholders and investors
 Venture capital investments
Natural capital
Nature-friendly manufacturing
 Energy consumption: 2,664GWh
 Water consumption: 4.34 million m3
 Raw materials: 160,000 tons
 Chemical substance emissions: 84.5 tons
 Renewable energy usage rate: 25%
 Recycling rate: 99.5%
(fiscal year ended March 2022 or as of March 31, 2022)
ESG management
Profitability Improvement
Research & Development
Commercialization
Digital Transformation (DX)
Sources of our strength
A corporate spirit rooted in a  
commitment to serving society
Over 100 years of accumulated  
material technologies and  
production technologies
Co-creation with customers,  
suppliers, and research institutes
Human resources dedicated to  
taking on challenges
INPUT
DIRECTION
Reinvestment in capital
Founding Spirit:
Enterprising mind
Responsibilities to society
Dedication to taking on challenges
Global expansion
Diversification
Compliance 
P.77
Health and safety 
P.60
Environmental 
P.47
Quality 
P.61
Corporate governance 
P.67 
15
NGK REPORT 2022
A company to contribute to carbon neutrality and 
digital society with our unique ceramic technologies
Our greatest strength is our 
unique ceramic technologies 
that cannot be imitated by  
our competitors
Five Transformations  
to realize our vision
What we must do: 
Management materiality
External environment and societal issues
Megatrends facing the NGK Group
External  
environment 
and 
megatrends
 Conservation of biodiversity
 Achieving a circular economy
 Promoting diversity
 Respect for human rights
 Increasing climate change risks
 Increasing geopolitical risks
 Making mobility clean and safe
 Making clean energy highly efficient
 Making a smart society more pleasant
 Making manufacturing sites innovative

OUTPUT / OUTCOME
16
NGK REPORT 2022
NGK Group Vision
A company to contribute to 
carbon neutrality and digital 
society with our unique 
ceramic technologies
Net sales from newly launched businesses: 100 billion yen  
(New Value 1000)
CN/DS sales ratio: 50%
2030 targets
Enriching Human Life
by Adding New Value 
to Society.
Quality of
People   Embrace challenges and teamwork.
Quality of
Product   Exceed expectations.
Quality of
Management   Social trust is our foundation.
Our Mission
Our Values
NGK Group Philosophy
What we want to be
By 2050
Carbon neutrality and digital 
society-related
Grow to 80% of sales
Goals
Net sales: 510.4 billion yen   Operating income 83.5 billion yen
Results (the fiscal year ended March 2022)
Net sales: 600 billion yen   Operating income: 90 billion yen
Performance targets for 2025
Main products
Environment Business
 Ceramics for purifying automobile 
exhaust
 NOx sensors
External impact
Contributing to 
sustainable development 
for society
IMPACT
Internal impact
Enhancing input
 Financial structure with high 
investment/risk tolerance
 Acquiring and developing 
human resources
 Expanding business domains 
and partnerships
 Accumulating technologies and 
increasing intellectual capital
Digital Society Business
 Ceramics for electronics and 
electric devices
 Ceramics for semiconductor 
manufacturing equipment
 Metals and mold products
Energy & Industry Business
 Insulators and power-related 
devices
 Energy storage systems
 Industrial equipment and devices
 Atmospheric CO2 adsorption modules 
 Industrial CO2 separation membranes
 Beryllium copper components for 
hydrogen-related infrastructure
 Honeycomb structural reactors for  
synthetic fuel
 Solid oxide electrolysis cells
 Large-format storage batteries for 
renewable energy storage 
 Power supply services
 Electronic parts for EV
 Ultra-compact, ultra-thin batteries that 
support IoT
 Parts for next-generation semiconductor 
manufacturing equipment
 Piezoelectric micro-actuators for HDDs
 New bonded wafer for sensing devices
 Bonded wafers for next-generation 
communication networks 
 Wafers for next-generation power 
semiconductors
 New ceramic packages
 Mobility sensors
Products and services that contribute to 
resolving social issues
For carbon neutrality
CN
For a digital society
DS
The NGK Group Value Creation Story

17
NGK REPORT 2022
External environment
 Respect for human rights
 Increasing climate change risks
 Growing geopolitical risks 
 Conservation of biodiversity 
 Realization of a circular economy 
 Promotion of diversity
Our view of current conditions
 An environment undergoing 
major transformation
	 > Carbon neutralization
	 > Remarkable digital evolution
NGK Group    
What we must do
Convert our business 
structure through Five 
Transformations
Developments such as the shift to electric vehicles 
are driving the automobile industry into a once-in-a-
century period of dramatic change. The ceramics 
that are indispensable to purifying automobile 
exhaust gas accounts for roughly 40% of our net 
sales. As such, the NGK Group must pursue new 
development opportunities. For us to fulfill an even 
greater role in the sustainable development of 
society, we must transform into a company that 
provides products and services that anticipate the 
needs of a future society. We will strengthen our 
initiatives, which can be said to be our Third 
Foundation, and promote the transformation of our 
business structure by setting our CN/DS-related 
sales composition ratio as a milestone.
CN/DS-related sales composition ratio
80%
Fiscal year ending 
March 31, 2050
(Target)
50%
Fiscal year ending  
March 31, 2030
(Target)
30%
Fiscal year ended  
March 31, 2022
(Current)
Enriching Human Life  
by Adding New Value  
to Society.
Our Mission 
NGK Group         
Transforming our business structure
NGK Group Vision: Road to 2050
NGK Group Vision:
Promoting transformation for  
sustainable growth
Current
Road to 2050

18
NGK REPORT 2022
In April 2021, we drafted the NGK Group Vision. Amid a period of dramatic global transformation, the NGK Group 
Vision clarifies “what we want to be” and “what we must do”. This vision was established based on the perspective 
of backcasting from the future society of 2050, aiming to be a corporate group that will be appreciated by society in 
the future. We will challenge ourselves to new value creation in the fields of carbon neutrality (CN) and a digital 
society (DS), and work to achieve the NGK Group Philosophy by transforming our business structure.
   Vision
What we want to be
A company to contribute to 
carbon neutrality and digital 
society with our unique 
ceramic technologies
In anticipation of social changes likely to 
occur as we head towards 2050, our 
Group is engaged in initiatives aimed at 
contributing to society in two ways: 1) 
carbon neutrality (CN) where humans 
coexist with the natural environment, 
and 2) a digital society (DS) where 
people can live  in safe, convenient, 
comfortable, and healthy lives. We will 
pursue new value propositions by 
utilizing our unique ceramic 
technologies and strengthening our 
efforts to society.
Backcasting from  
what we want to be
CN
Toward carbon neutrality
To achieve carbon neutrality, we 
will develop various items based 
on our unique ceramic 
technologies.
DS
Toward a digital society
To contribute to the further 
development of a digital society, 
we will promote the development 
of new products based on our 
unique ceramic technologies.
Carbon Neutrality
Digital Society
Backcasting from  
our 2050 vision
Quality of People 
Embrace challenges and teamwork.
Quality of Product 
Exceed expectations.
Quality of Management 
Social trust is our foundation.
Our Values
        Philosophy
Our image of 2050
 Future technology
 The future of fine ceramics
 Social issues that will be 
exposed in the future
Future social issues being 
evaluated by the NGK Group
 A society centered on 
renewable energy
 AI innovation enabling a smart 
society in all aspects of life
Pursuit of new value propositions
Challenging new value creation  
with unique ceramic technologies
2050
The NGK Group Value Creation Story

NGK Group Vision: Road to 2050
Five Transformations
19
NGK REPORT 2022
ESG  
Management
Profitability 
Improvement
Commer-
cialization
Research  
& Develop-
ment
Digital  
Transformation  
(DX)*2
The NGK Group will transform into what we want to be by pursuing Five Transformations.
Under our Group slogan of “Surprising Ceramics,” we will transform  
our business structure toward what we call our Third Foundation.
Increase of earning 
power, creating a cycle 
for growth
 ROIC*3 / Analysis and 
improvement of profitability in 
each business
 Strengthening entire process 
chain
Reinforcement of 
societal implementation 
of our products
 Improvement of cross divisional 
marketing capabilities
 Expansion of collaboration with 
outside partners
 Expanding solution business
Propulsion for the 
whole transformation
 Digitization of all processes in 
the company
 Training of IT liaisons in each 
division
Achievement of  
‘New Value 1000’
 Attain more than 100 billion yen of sales in 
newly launched businesses*1 in 2030
 Investment of 300 billion yen in R&D over the 
next 10 years  
Concentration in the CN and DS areas (80%)
*1 Businesses just launched and to be newly launched in the future
*2 DX: Digital Transformation 
Transform business models and corporate structure with digital technology
*3 NGK ROIC (see page 32)
ESG as a foundation of  
management
NGK Group Environmental Vision:
Contributing to achievement of 
CN through products and services
Realizing net zero CO2 emissions 
in our own activities by 2050
Solutions to social issues  
through businesses
Recruitment and cultivation of 
human resources
Gradual reform of governance
Development of a culture of 
openness
ESG 
Management
The central management focus moving forward will be contributing to society—as a member of 
society—through our business. In particular, with regard to E (environmental), we have formulated the 
‘NGK Group Environmental Vision’ along with the ‘NGK Group Vision’ In that Environmental Vision, we 
stipulate our targets as contributing to carbon neutrality through products and services as well as 
achieving net zero CO2 emissions in our own activities by 2050.
Profitability  
Improvement
Regarding improvement in earning power, we are going to take on the following initiatives:
- Generating cash by securely increasing our earning power over the next five years as explained earlier
- Instilling management utilizing ROIC and analysis and improvement of profitability in each business 
within the entire NGK Group
- Starting new actions in production processes to continue to reinforce our strengths as a manufacturer
Research &  
Development
We will aim and work on to create a business with sales of 100 billion yen by 2030 through new 
business development, which we call ‘New Value 1000.’ In order to achieve this, we will invest 300 
billion yen in R&D over the next 10 years with 80% allocated to carbon neutrality and digital society.
Commercialization
In order to make ceramic products born from our strength more widely used in society, we will focus on 
expanding to solution business, not limited to just selling things, by improving our marketing capabilities 
and expanding collaboration with the outside partners.
Digital  
Transformation (DX)
We will use the power of digital to accomplish the above business transformation.

The NGK Group aims to become a company that provides new value to society through our 
unique ceramic technologies. We are working to transform our business structure by promoting 
Five Transformations. 
	
In April 2022, we reevaluated our business segments and established the Corporate NV 
Creation to improve our ability to respond to changes in technology and in our operating 
environment. We also drafted the NGK Group Digital Vision , which aims to promote 
transformation at NGK, a company that have come to take the use of data and digital technology 
for granted. To improve short-term profitability, medium- to long-term growth potential, and 
ultra-long-term social performance, we adopted the NGK version of value added. These initiatives 
represent the start of our transformation efforts. By steadily promoting these initiatives with a 
sense of urgency, we will achieve sustainable growth for the NGK Group.
Speaking with  
Key Persons Promoting  
Five Transformations
Accelerating Our Transformation
The NGK Group Value Creation Story
20
NGK REPORT 2022

In the NGK Group Vision: Road to 2050, we outline our core strategy for business 
structure transformation as “strengthening collaborations and commercializing 
new products to create new value and achieve net sales of 100 billion yen 
(NV1000).” We spoke with the leaders of the Corporate NV Creation, the Corporate 
R&D, and the Corporate Manufacturing Engineering, driving forces behind strategy 
implementation and promotion.
Creating 
New Value
Speaking with  
key persons  
promoting Five 
Transformations
New Value 1000
Strengthen collaborations and 
commercialize new products to achieve  
net sales of 100 billion yen 
Senior Vice President 
Group Executive,  
Corporate R&D 
Tsutomu Nanataki 
Senior Vice President
Group Executive,  
Corporate Manufacturing Engineering 
Atsushi Miyajima
Executive Vice President
Group Executive,  
Corporate NV Creation
Ryohei Iwasaki 
NGK Group Vision: Road to 2050
21
NGK REPORT 2022

22
NGK REPORT 2022
NV1000 is a declaration of  
our commitment to  
transformation
—NV1000 initiatives are fully underway 
at the company.
Iwasaki: The operating environment 
influencing the NGK Group is entering a 
paradigm shift. The shift to electrified 
vehicles (EV) represents an avoidable 
situation in which we will see a decline in 
medium-term demand in products for 
purifying automobile exhaust. Despite 
projections for growth in products for 
semiconductor manufacturing 
equipment, ensuring sustainable growth 
for the NGK Group will require that we 
develop businesses that will become the 
next pillars of growth for the Group. The 
NGK Group Vision: Road to 2050, 
recognizes this situation and outlines the 
direction we must head to contribute to 
society by solving the issues facing 
modern society. NV1000 represents our 
medium-term goals for R&D, one of the 
Five Transformations we must engage in 
to achieve this vision. This goal involves 
aiming for 100 billion yen  or more from 
newly commercialized products by 
2030. Reaching this goal will require that 
we increase R&D expenses to 300 billion 
yen over a 10-year period. Of that 
amount, we are planning to allocate 80 
percent to R&D related to carbon 
neutrality and a digital society. This is a 
challenging goal the company has 
outlined towards achieving transforma-
tion for the NGK Group. But through 
collaboration between the Corporate NV 
Creation, the Corporate R&D, and the 
Corporate Manufacturing Engineering 
Group, we will promote and work to 
accelerate product commercialization, 
another one of the Five Transformations. 
Nanataki: NV1000 is a very lofty goal, 
and I have a healthy awareness of the 
fact that this is not something we can 
achieve without being fully committed. 
As the Corporate R&D, we must focus 
more than ever on creating new, 
distinctive technology that can serve as 
a source of competitiveness. We will also 
need to continuously create promising 
R&D themes while also accelerating our 
efforts. In the past, some products took 
10 years or more to develop. However, 
in times of dramatic change, we must 
link R&D to commercialization more 
effectively and more rapidly. Also 
important to increasing the rate of 
success for our R&D themes will be our 
ability to thoroughly engage in basic 
marketing. This refers to our ability to 
identify promising markets, measure our 
probability of success on those markets, 
and determine what we need to win on 
those markets. 
Miyajima: As the group in charge of 
prototypes, mass production technology 
and mass production quality, the ability 
to commercialize newly developed 
products and quickly convert them into a 
format that can generate revenue comes 
down to the Corporate Manufacturing 
Engineering Group. The company’s 
ability to commercialize newly developed 
products and make them profitability 
depends on us. The highest priority 
issue in the manufacturing process is 
achieving greater speed. I believe that 
we must work to close collaboration to 
reduce time losses in every phase. Thus 
far, our main role has been the 
expansion of existing business but, 
moving forward, we will demonstrate the 
power of engineering through our 
manufacturing technology development 
for new products. 
Cooperation between Marketing, Our Unique Technologies, and 
Manufacturing
Cooperation
Quickly seize the needs of the 
market and customers and 
promote commercialization
Prototypes for 
mass-production 
technology 
Equipment engineering 
Quality assurance
Ceramic materials
Elements
Evaluation
Technologies
Corporate 
R&D
<New> 
Corporate NV Creation
Corporate 
Manufacturing 
Engineering
Concurrent development
Set themes and 
development 
targets
Test manufacturing 
Equipment engineering
Engineering
Marketing
Manufacturing
Our unique 
technologies
Different industries 
Academia
Startup companies
Collaboration 
with external 
partners
The NGK Group Value Creation Story

23
NGK REPORT 2022
Focusing on marketing  
while increasing the speed  
of new product  
commercialization and  
new business development
—Tell us about the initiatives being 
undertaken by each headquarters.
Iwasaki: The Corporate NV Creation 
was established as a new organization 
to lead marketing with the goal of 
dramatically increasing our new market 
development capabilities to promote 
early realization of NV1000. Gathering a 
diverse range of personnel from each 
operating division and the head office, 
we launched activities this spring as a 
group with 100 members, an unprece-
dented scale for the NGK Group. Staff 
with sufficient sales experience and staff 
with deep technical knowledge work 
together to gather high value information 
towards increasing global recognition of 
our products and technology. While the 
NGK Group has a strong foundation in 
technology, we have had cases of not 
achieving returns in line with expecta-
tions due to progressing with develop-
ment without conducting sufficient 
marketability validation. Moving forward, 
the Corporate NV Creation and the 
Corporate R&D will engage in close-knit 
information sharing from the point of 
development theme conceptualization. 
We will improve theme success rates by 
thoroughly identifying markets and 
customers, and analyzing competition. 
Through mechanisms such as Business 
Development Promotion Meetings (NV 
Gate Promotion Meetings), which we 
began from this fiscal year, we will also 
make judgments on the investment of 
management resources. How we 
choose themes in which we engage in 
the dynamic and focused allocation of 
management resources is an issue that 
will influence the failure or success of the 
NGK Group. We will thoroughly discuss 
this issue and make decisions based on 
practical and highly transparent 
decision-making. 
Nanataki: As I mentioned earlier, R&D 
will dedicate ourselves to creating new 
distinctive technology. Over the years, 
NGK has used ceramic crystal 
orientation technology, hydrothermal 
synthesis technology, and precision 
bonding and compounding technology 
for dissimilar materials to manufacture 
proprietary products including bonded 
wafers for surface acoustic wave (SAW) 
filters, the lithium-ion rechargeable 
battery EnerCera®, and sub-nano 
ceramic membranes. Moving forward, 
we will fulfill our mission of creating even 
more distinctive technology at an even 
greater development speed. We will 
accomplish this by collaborating with the 
Corporate Manufacturing Engineering 
Group from the early phase, in other 
words, we will engage in concurrent 
development. Additionally, we will 
incorporate next-generation DX (digital 
transformation) technology such as 
materials informatics (MI)*1 to take 
advantage of accumulated data and link 
our efforts to faster business  
development. 
*1 Materials informatics (MI): Applying informatics 
(information science) such as machine learning and 
big data, the core technology of AI, towards new 
materials and new component development.
Miyajima: The Corporate Manufacturing 
Engineering will need to change our 
mindset related to conventional 
manufacturing processes. In the past, 
our conventional process involved the 
Corporate R&D  completing a prototype, 
after which our division would then start 
work on a pilot plant design and conduct 
validation to confirm product feasibility 
before finally moving into mass 
production. However, moving forward, 
we will strive to dramatically accelerate 
our methods by engaging in concurrent 
development that advances multiple 
processes simultaneously. Specifically, 
we will get involved in projects from the 
upstream phase of development. This 
will enable us to begin evaluating mass 
production facilities from the early stages 
of development and create the 
manufacturing processes necessary for 
mass production. We will incorporate 3D 
printers and other technology that will 
help us optimize the prototype creation 
process. We will also rapidly provide 
feedback to the Corporate R&D to 
promote the simultaneous resolution of 
the various issues that occur at each 
stage of development. 
Iwasaki: I think it will be important to 
proactively incorporate external 
knowledge. Thus far, our company has 
largely practiced a philosophy of finding 
solutions through internal efforts but 
moving forward it will be difficult to win 
by embracing such a philosophy. As 
global manufacturers work towards 
technological innovation related to 
carbon neutrality and a digital society, 
ensuring that our technology is adopted 
by society will require that we utilize 
external knowledge from various 
resources. This includes not only 
academia and dedicated research 
organizations, but also means 
incorporating technology from global 
startups. With this in mind, we have 
begun investing in venture capital and 
startup companies.
Nanataki: To increase the speed of R&D 
while focusing on new distinctive 
technology, in addition to increasing the 
number of development personnel and 
upgrading our facilities, more than ever 
we must actively engage in open 
innovation. Our scope of innovation can 
be expanded by utilizing external 
resources such as seeds from 
universities and public institutions, and 
by engaging in joint research. Collabo-
rating with researchers with different 
perspectives can lead to unexpected 
new ideas. We will continue to 
NGK Group Vision: Road to 2050
Creating New Value

24
NGK REPORT 2022
collaborate with a wide range of partners 
towards advancing our R&D.
Iwasaki: As another new approach, this 
spring we opened the ID-Room TOKYO 
Satellite. Located in the Marunouchi 
Building in Tokyo, this innovation room 
will serve as a space for promoting 
collaboration with partners. The space 
features various elements, including 
using projection mapping to introduce 
impactful companies, remote conferenc-
ing that uses several large liquid crystal 
panels for an augmented experience, 
and an exhibition corner where visitors 
can actually interact with the products 
that interest them. My hope is that the 
entire company, including the business 
divisions, makes use of this space as a 
place for creating opportunities that lead 
to new collaborations.
Corporate NV Creation 
taking the lead in  
accelerating initiatives
—Please comment on future actions 
towards achieving NV1000.
Iwasaki: The Corporate NV Creation will 
be involved in every process from new 
product creation to commercialization, 
and I think this will speed up our actions 
towards achieving NV1000. We will 
increase our marketing strengths with 
the conviction of doing whatever we 
think is necessary to rapidly advance 
development themes to a point where 
they can be passed on to a business 
division. This will also mean increase our 
numbers of talented staff so we also 
plan on enhancing our recruitment 
activities. I feel a huge sense of 
responsibility, but it is also very 
motivating. 
Nanataki: I am very encouraged about 
having the Corporate NV Creation, which 
will enable collaborations from an early 
stage and pursue both commercial feasi-
bility and benefits for our customers. 
Taking an R&D theme to commercializa-
tion involves for phases: (1) Concept 
creation, (2) Feasibility study, (3) 
Commercial feasibility verification, (4) 
Commercial feasibility validation. The 
Corporate NV Creation will utilize internal 
and external networks to promote the 
smooth advancement of promising 
themes to the next step. At the same 
time, the knowledge of the Corporate 
NV Creation will be central in deciding on 
commercial feasibility, which will make it 
easier to make decisions regarding 
stopping R&D. Knowing when to stop 
R&D can be very difficult, but it is 
sometimes necessary to downsize or 
withdraw in order to concentrate 
resources on promising themes. 
Miyajima: By evaluating mass 
production from the R&D phase, I think 
that we can build a system that will 
enable the efficient transition to mass 
production without having to redo 
certain work. For example, costs are an 
important issue when it comes to mass 
production. This type of method will 
reduce the chances of having to redo 
evaluations from the beginning due to 
costs considerations. I also think such 
close-knit collaborations will increase 
transparency and create a more positive 
development cycle. Collaboration 
between the three groups will be a key 
point to achieving NV1000. I want to 
engage in frank communication and 
create a framework that functions 
organically towards realizing our 
common goal. 
Iwasaki: While there is an element of a 
sense of urgency in response to 
changes in our environment, both 
NV1000 and the Corporate NV Creation 
are the result of policies originating from 
positive ideas. They represent our 
commitment to using our existing core 
technology and working with domestic 
and overseas Group partners to take on 
new challenges without a fear of failure. 
The Corporate NV Creation is an 
organization comprised of a diverse 
range of personnel and every member of 
this group is excited about the 
opportunity to contribute to the creation 
of new value. We will apply our collective 
knowledge towards taking on challenges 
in various fields. I believe actions based 
on this commitment represent our path 
to realizing NV1000, and will lead to the 
type of transformation the NGK Group 
aims to achieve.
NV1000 Sales Outlook
Net sales
FY2030
50 bn yen
2030
2025
2021
100
(bn yen)
(FY)
80
60
40
20
0
DS: Digital Society-related Products
CN: Carbon Neutrality-related Products
Net sales
FY2030
30 bn yen
DS
CN
Aim for  
profit margin 
above 10%
Other
The NGK Group Value Creation Story

25
NGK REPORT 2022
Drafting the NGK Group Digital Vision 
DX as the driving force of Five Transformations
In the past, NGK’s core strength was in the conventional 
manufacturing of products. From generation to generation, 
we inherited the skills and knowhow cultivated over the 
years to establish market differentiation and a competitive 
advantage not easily mimicked by other companies. Our 
shift towards the adoption of digital technology began some 
10 years ago. We realized that, amid intensifying global 
competition, differentiating ourselves and securing a 
competitive advantage would require that we accumulate 
qualitative elements such as skills and knowhow as 
quantitative data that could be applied towards further 
improving our production efficiency.
	
Our current environment is known as the era of VUCA 
(volatility, uncertainty, complexity and ambiguity), an age in 
which technological advancements are creating 
environments of increasing complexity and making it difficult 
Executive Vice President
Chiaki Niwa
Promoting DX to  
support business and 
management that leads to 
new value creation
NGK Group Vision: Road to 2050
The NGK Group is proactively promoting digital transformation (DX) to achieve corporate 
reforms that will position us for the future. In April 2022, we outlined the NGK Group Digital 
Vision and a roadmap for promoting initiatives through 2030.
We will increase our market competitiveness, efficiency, and productivity to achieve growth as 
a corporation and the new value creation made possible through these initiatives.
Speaking with  
key persons  
promoting Five 
Transformations
Promoting DX to 
Accelerate Five 
Transformations
to forecast the future. As uncertainty increases during the 
winds of changes coming from all directions, achieving 
sustainable growth for the NGK Group will require that we 
shift away from conventional thinking about business and 
work processes. We must adopt thinking and concepts that 
fit with the changing times. The key to this will be to 
transform our corporate structure and business models by 
adopting data and digital technology. In other words, we 
must undergo in a digital transformation. The NGK Group 
must take unprecedented efforts to accelerate our DX and 
create new value.
	
In April 2022, we drafted the NGK Group Digital Vision, 
which we linked to our medium- and long-term vision. As 
our vision of what we want to be, we want to contribute to 
carbon neutrality and a digital society by using DX as the 
driving force of Five Transformations that will help us realize 
what we call our Third Foundation. We will seamlessly 
incorporate data and digital technology to identify the needs 
of our customers and society. We will reform our products,

26
NGK REPORT 2022
services, and business model to establish a sustainable 
competitive advantage. Through these initiatives, we will 
achieve the “Third Foundation” where we use DX to drive 
our Five Transformations will lead to new value creation and 
innovation that helps resolve social issues and promotes 
corporate growth.
Three pillars of DX promotion  
Human resources, digital technology, and 
organizational culture
Transforming into a company capable of the seamless 
adoption of technology will require more than simply using 
data and digital technology. This will require the company-
wide digital transformation. Critical to this transformation 
will be the development of human resources, and the 
reform of our organization and corporate culture. With this 
in mind, we positioned human resources, digital, and 
organization and culture as the three core policies of the 
NGK Group Digital Vision.
	
In the area of human resources, we will hold in-person 
seminars and web meetings on the use of our internal portal 
and DX, as well as provide opportunities to interact with 
other companies as a part of enlightenment activities for all 
employees, including senior management. To foster the 
development of human resources capable of utilizing data, 
we will aim for the development of 1,000 staff members by 
2030. For example, the DX Study Exchange we launched in 
2021, in an internal program that provides staff the 
opportunity to leave their assigned department for one year. 
During this period, employees are allowed to focus on data 
analysis and digital technology without having to also 
perform their existing duties. This program is designed to 
develop the leaders who will play a core role in promoting 
DX. We chose three members for the program in FY2021 
and expanded this to 13 members for FY2022. By 2030, we 
are planning to develop a total of 110 leaders. Aiming to 
increase overall IT literacy for the Group, we also are 
recommending employees take the Information Technology 
Passport Examination (a national examination for measuring 
basic IT knowledge) and are even planning to make this a 
required for employee promotions. We will also focus on the 
development of “bridge talents”, staff members capable of 
proposing policies that strike a balance between business 
management, operations, and IT. These bridge personnel will 
also serve as key personnel in our initiatives to promote DX.
	
As initiatives related to digital, we will work to build, 
implement, and improve on a data utilization platform that 
will support the future activities of the NGK Group now that 
we have completed the transition from legacy systems. 
From materials informatics (MI)*3, which we introduce later in 
this report, and process informatics (PI)*4 to cyber-physical 
systems (CPS)*5, we will aggressively develop and integrate 
next-generation technology. Particularly with MI, which will 
become a core technology for NGK, we will aim to reduce 
our development lead time by 90 percent. Additionally, we 
will reevaluate and strengthen IT security measures for the 
entire NGK Group. Specifically, by the end of FY2024, for 
the entire NGK Group we will (1) build a targeted attack 
defense system, (2) establish and SOC+EDR*6 to strengthen 
detection capabilities, and (3) upgrade to a secure backup 
that is highly resistant to virus attacks. These measures are 
NGK Group Digital Vision
Apply digital technologies as a key driving factor of “Five Transformations” to realize the  
“Third Foundation” and lead to carbon neutrality and digital society.
Transform NGK Group into a digital-oriented company by 2030
*1 Bridge talents: Human resources that can adopt measures that strike a balance between management, operations and IT
*2 MI: Materials Informatics, PI: Process Informatics, CPS: Cyber Physical Systems 
Human Resources
Digital Technology
Organizational 
Culture
 DX enlightenment from top 
management to employees
 Development of highly 
skilled data scientists 
1,000 employees in 2030
 Training of IT bridge 
talents*1 in each division
 Construct data 
utilization platform
 Develop next-generation 
technologies  
MI, PI, CPS*2 
 Robust IT security
 Top management 
commitment
 Cooperate and promote 
with all NGK Group
 Reform all NGK 
employees’ mind  
Agile, Challenge
The NGK Group Value Creation Story

27
NGK REPORT 2022
in line with the approach outlined by the US National 
Institute of Standards and Technology (NIST).
	
To address our organization and culture, we will ensure 
awareness and understanding of management’s strong 
commitment to promoting DX as a part of our management 
strategy. The entire NGK Group will unite towards building a 
framework for collaborating on these initiatives. We will also 
strengthen collaborations with our overseas locations and 
engage in activities that promote mutual success, including 
holding global conferences based on the adoption of 
common KPI. To ensure the success of our DX initiatives, 
we will work to cultivate a mentality centered on reform 
through which everyone from management to local site 
employees all embrace the importance of transforming how 
we think and taking a proactive role in operational reforms. 
Through these efforts, we will increase our annual project 
numbers from the current 100 per year to 300 per year.
	
We will engage in inter-departmental collaborations to 
promote DX activities based on these three core initiatives. 
By 2030, we are aiming to be a company capable of the 
seamless utilization of data and digital technology.
*3 Materials informatics (MI): Applying informatics (information science) such as 
machine learning and big data, the core technology of AI, towards new materials 
and new component development
*4 Process informatics (PI): Applying information sciences to new process 
development.
*5 Cyber-physical system (CPS): Creating value by using real-world data to recreate 
virtual spaces for analysis, and then provide feedback for real-world applications.
*6 Security Operation Center (SOC): An external dedicated organization that conducts 
24-hour monitoring of device and service logs to quickly detect viruses on internal 
systems and other external threats. 
Endpoint Detection and Response (EDR): Software that monitors for suspicious 
activity or communications on PCs and servers to detect and respond to infiltration 
by computer viruses and other external threats.
NGK Group Vision: Road to 2050
Tier-based education
Person who has acquired IT literacy  
and data literacy
Person who supports  
the DX Leader
Leader in the  
business department  
for promoting DX
DX Expert
DX Expert
Digital Transformation &  
Innovation Department Member
 DX Leader
 DX Supporter
 DX Beginner
Long-term plan
2021
2022
2023
2024
2025
What we want to be by 2030
 DX Experts
DX Experts: Total of 20 people
 DX Leaders
DX Leaders: Total of 110 people
 DX Supporters
DX Supporters: Total of 300 people
 DX Beginners
DX Beginners: Total of 600 people
3 people in initial year
5-15 people/year
Total of 35 people
20-30 people/year
2-3 people/year
20-40 people/year
Total of 6 people
Total of 100 people
Total of 300 people
DX Leader	
: A leader who promotes DX in the business division
DX Supporter	: Human resources who work together with 
departments and sites to resolve individual 
technical issues using data analysis
DX Beginner	 : Personnel who can apply data analysis methods in 
their work
Promoting DX to Accelerate Five Transformations
Common education and training 
for leaders and supporters
DX Study Exchange
Report meeting

28
NGK REPORT 2022
DX promotion roadmap 
Gradual initiatives in 3 steps
The driving force behind DX promotion will be the Digital 
Transformation and Innovation Department, which we newly 
established in April 2021. Conducting activities across the 
entire company, this department will link digital technology 
such as AI and IoT with the expertise of each business 
division, Corporate R&D, and headquarters departments. 
The Digital Transformation and Innovation Department will 
also fulfill the role of supporting and promoting business 
reforms. Furthermore, the following is the DX promotion 
roadmap we formulated to transform into a company 
capable of utilizing data and digital technology.
STAGE1  Build a foundation for digital utilization
We will build a foundation for using digital technology by 
establishing a DX promotion organization and developing DX 
human resources. We will advance the digitization of analog 
data, the basis of our DX strategy, to improve operational 
efficiency and save labor while also working to improve the 
digital literacy of our employees.
STAGE2  Establish a promotion system and  
accumulate results
We will adopt our successes from STAGE2 throughout the 
company and promote the digitalization of each business and 
manufacturing process. We will make DX activities autonomous 
with business departments and local sites, change and 
reconstruct operational processes using digital technology, and 
link these efforts to the discovery of new needs.
DX promotion roadmap
Transform into a company capable of the  
seamless utilization of data and digital technology
Build a foundation for digital utilization
Establish a promotion system and accumulate results
Current 
position
Expand DX activities to all directions
STAGE
3
STAGE
2
STAGE
1
Through 2030
Through 2025
Through 
2023
 Establish a DX promotion team and develop DX professionals
 Accumulate experiences through project planning and challenges
 Laterally apply DX experiences within NGK
 Self-drive DX activities in business units and the field
 Realize profitability improvements at the business unit level
 Transform business models on a company-wide level
Transformation through data  
and digital technology utilization
Digitalization of business operation
Digitization of analog data
The NGK Group Value Creation Story
STAGE3  Expand DX activities to all directions
We will leverage data and digital technology to transform our 
business model on a company-wide level. We will establish 
a competitive edge by reforming our corporate culture, 
organization, and operational processes while also 
improving the profitability of each business division. 
Furthermore, we will pursue continuous innovation to create 
unparalleled value.
The NGK Group is currently in STAGE1. Looking ahead to 
what we want to be in 2030, all employees in all divisions of 
the company will conduct backcasting and gradually 
implement initiatives with a sense of urgency as we work to 
increase our experience and maturity.
Establishing DX unique to NGK 
“Materials Informatics”
One of the next-generation technologies that we are 
focusing on is a development method called Materials 
Informatics (MI). This involves creating a database of 
calculated data based on simulations and accumulated 
experimental data. This data is then analyzed by AI to 
efficiently search for new materials. The adoption of this 
technology is expected to speed up the development of 
advanced materials.
	
Thus far, there we have seen examples of practical 
applications for MI in the calculated data for organic 
materials. However, with inorganic materials such as 
ceramics, no progress has been made in the application of 
MI due to the fact that ceramics are complex structures

29
NGK REPORT 2022
comprised of multiple crystalline elements, making 
high-precision simulations more difficult than with organic 
materials.
	
The NGK Group has more than 10,000 sets of 
experimental data accumulated over the past 100 years, 
and we are developing MI that leverages this vast 
experimental data that other companies do not possess. 
Our goal is to use MI to shorten development lead-time by 
90 percent and establish MI unique to NGK that will lead to 
future growth. The Corporate R&D Group, Digital 
Transformation and Innovation Department, and Corporate 
Manufacturing Engineering Group will engage in a company-
wide project towards achieving this goal.
Engineering chain
A series of operations 
centered on the development 
and design departments
Materials informatics unique to NGK
Product 
planning
Product 
design
Process 
design
Preparation  
for production
Maintenance
Order 
received
Production 
planning
Parts 
procurement
Production
Logistics
Finance
Auditing
Sales
HR
Quality 
Management
Follow-up 
services
Legal Affairs
Environment, 
Industrial 
Safety and 
Health
Engineering chain
Supply chain
Back-office  
(headquarters departments)
Customer
Supplier
Supply chain
A series of operations 
centered on procurement, 
production, and supplies
Database
 Past experimental data 
Accumulated over the 
past 100 years 
Over 10,000 reports
 Includes data from 
high-speed experiments
AI technology
(Machine learning)
Data from past experiments (NGK strengths)
Develop MI using experiment data
 Ceramics have complex, advanced structures comprised of multiple crystalline elements
 Properties are dictated by microstructures such as grain size, grain size distribution, and grain 
boundary phase.
Crystal 
grains
Grain boundary phase
Crystal 
grains
Crystal 
grains
Create  
innovative 
materials
Application to material development for all NGK products by the end of fiscal 2030
High throughput 
experiments 
Generating large amounts 
of experimental data at 
high speed
NGK Group Vision: Road to 2050
Seamless connection of all processes along  
our engineering and supply chains
Based on the NGK Group Digital Vision, our vision of 
manufacturing in 2030 is one where all processes along the 
engineering and supply chains are seamlessly connected 
through digital technology. To achieve this vision, on the 
engineering chain, we will introduce next-generation 
technologies such as MI to speed up development and 
improve productivity by digitizing human experience and 
technology. On the supply chain, we will digitize data and 
create an environment that facilitates the utilization of data 
gathered by the Manufacturing, Sales, and Procurement 
Divisions. These activities are being promoted in close 
Promoting DX to Accelerate Five Transformations

30
NGK REPORT 2022
coordination with one of our company-wide initiatives, 
Manufacturing ∞ (Chain) Innovation. It will also be essential 
to reform the back-office functions (headquarters 
departments) that support manufacturing. Through DX, we 
will improve the efficiency of low-value-added work and 
improve the speed of management by becoming experts in 
strategy/decision-making tasks.
Promoting DX is essential to  
expanding services
The NGK Group is expanding our business beyond product 
manufacturing to provide services, systems, and solutions. 
We are working towards the utilization of data and digital 
technology in these areas as well.
	
One example is the regional new electric power project 
(Ena Electric Power, Abashiri Electric Power) that utilizes 
large-scale storage batteries and NAS® batteries. Our product 
in this project is the NAS battery, but we have launched a 
business that sells not only NAS batteries, but also provides 
megawatt-class power storage systems that offer large 
capacity, high output, and long service life. Renewable energy 
sources such as solar power have issues with stable power 
supply because the amount of power generated varies 
depending on the weather. NGK applied digital technology to 
build a system that can forecast power generation and 
demand while finding the optimal balance between charging 
and discharging to provide stable power supply over the long 
term. The adoption of this system by society will enable the 
realization of local production and consumption of electricity, 
and promote the spread of renewable energy. This will 
create new value for NGK Group  and contribute to resolving 
social issues at the same time. The importance of storage 
batteries for "adjustment flexibility", the ability to provide a 
stable supply of electricity, is increasing. In the future, we 
Transforming into a company that 
seeks to utilize digital technology 
in all our processes and promoting 
reforms at our local sites.
The NGK Group Value Creation Story
plan to combine NAS batteries with larger energy 
management systems to help expand the adoption of 
renewable energy throughout society.
	
We believe that promoting DX is essential to developing 
our own competitive products into service provision and 
new business expansion.
Achieving change toward what we want to be
DX is a keyword of modern times, but human capabilities 
remain indispensable to achieving true DX that goes 
beyond mere digitization and operational efficiency. People 
are the main players in DX, and DX promotion initiatives will 
require that all employees to understand the essence of DX 
and work together as a group. The important thing is not 
to be satisfied with the status quo. Even small changes can 
make a difference in our operations. Each and every one of 
us must always embrace an attitude of “trying to change.” 
Through gradual advancements, we can make changes to 
departmental operations and manufacturing processes. 
We believe we can optimize the ensure NGK Group 
through a transformation resulting from a combination of 
multiple processes based on Group-wide collaborations 
between people and departments. An important 
management theme when promoting DX is the repetition of 
speedy planning, execution, evaluation, and improvement. 
The path to a successful DX strategy is the agile 
implementation of the PDCA cycle and to aim for 
improvement without fear of failure.
	
The connections between people, products, and 
services created by digital technology serve as a bridge to 
new value creation and innovation. The NGK Group will 
accelerate our DX promotion with a strong desire to 
transform into a corporation capable of utilizing data and 
digital technology.

31
NGK REPORT 2022
Progress relative to the NGK Group Vision
In the NGK Group Vision we announced in April 2021, 
based on assumed exchange rates of 1 US dollar = 100 yen 
and 1 euro = 120 yen, we set targets of 600 billion yen in 
net sales and 90 billion yen in operating income for FY2025. 
	
In FY2021, net sales increased by 12.9% year-on-year 
to 510.4 billion yen and operating income increased 64.3% 
year-on-year to 83.5 billion yen. In addition to a significant 
increase in demand for automotive-related products and 
products for semiconductor manufacturing equipment, 
there was also the impact of the yen depreciation. As a 
result, we set new record highs for both net sales and 
operating income. 
	
Based on the same exchange rate assumptions as in 
the Group Vision, net sales would have been approximately 
487 billion yen with operating income of approximately 73 
billion yen. We are making steady progress in the first year of 
Promoting management 
that emphasizes capital 
efficiency while maintaining 
financial soundness
Financial and 
Capital Strategies 
for Supporting 
Transformations
NGK Group Vision: Road to 2050
To achieve the NGK Group Vision, we will aim to improve our 
corporate value by increasing profitability and contributing 
to resolving social issues through optimal capital allocation 
and the transformation of our business portfolio.
Director and  
Senior Vice President
Hideaki Shindo
Speaking with  
key persons  
promoting Five 
Transformations
initiatives related to our Group Vision, and we will continue 
to take steps to achieve targets without allowing increased 
performance due to foreign currency rates to distract us 
from our goals.
	
In FY2022, although profits from automobile-related 
products will be sluggish due to increased costs associated 
with the situation in Ukraine, we are forecasting an increase 
in net sales and operating income, with net sales of 580 
billion yen and operating income of 90 billion yen. This 
reflects increased demand for products for semiconductor 
manufacturing equipment and yen depreciation. We will 
appropriately allocate management resources with the goal 
of achieving our performance targets for FY2025 ahead of 
schedule.
Medium-term business portfolio approach
The NGK Group Vision positions carbon neutrality and a

32
NGK REPORT 2022
digital society as future growth domains, and we are 
transforming our business structure so that products 
related to these domains will account for 50% of sales in 
2030, and 80% of sales in 2050. Looking at the 
Environment Business, which is currently a core driver of 
earnings, we expect a gradual decline in the internal 
combustion engine business moving forward due to the 
dissemination of electrified vehicles. However, we will work 
to maximize profits by ensuring a stable global supply 
structure to respond to demand growth related to a 
recovery in the global automotive market and the tightening 
of exhaust restrictions in various countries. In addition to 
using secured profits towards further expanding the Digital 
Society Business, which we position as a growth domain, 
we will first work to improve the short-term profitability of 
the Energy & Industry Business while also looking to 
expand products related to carbon neutrality products over 
the long term. By maintaining and improving the profitability 
of each business, we plan to increase medium- and 
long-term sales and profits.
Priority investment in the fields of  
carbon neutrality and digital society to  
achieve the NGK Group Vision
Regarding cash allocation, we anticipate continuous returns 
from capital investments conducted over the past five years, 
and our policy is to maintain a balance between input into 
growth areas and returns to stakeholders.
	
On the subject of input to growth areas, we will focus 
on capital investments and R&D in the carbon neutrality 
and digital society domains, which we position as the 
cornerstone of the NGK Group Vision. We will aim for sales 
of 100 billion yen from newly launched businesses by 2030 
as we work to achieve New Value 1000. We are planning 
on capital investments for FY2022 totaling 59 billion yen. 
This is mainly represented by renewal investments in the 
Environment Business and increased production in the 
Digital Society Business. Over the next several years, we 
are anticipating roughly 60 billion yen per year in 
investments, mainly in the Digital Society Business. 
Additionally, we are gradually expanding our environmental 
investments aimed at achieving net-zero CO2 emissions. 
We will advance these initiatives efficiently by reflecting 
economic perspectives based on internal carbon pricing 
into our investment decisions.
	
Regarding R&D expenses, in the NGK Group Vision we 
outline 300 billion yen in investments for research and 
development over 10 years. We plan to invest 26 billion yen 
in FY2022, of which approximately 60% will be invested in 
themes related to a digital society and carbon neutrality.
	
Looking to promote future growth, we will also 
proactively consider M&A. We are focused on two main 
directions for M&A. One is to consider targets that will lead 
to further strengthening and new growth expansion in the 
peripheral domains of existing businesses. The other 
direction is to consider investments in companies with which 
we can collaborate towards creating new products and new 
businesses. We will actively pursue opportunities based on 
these two criteria.
Progress relative to the NGK Group Vision
Medium-term business portfolio approach
600
Exchange rate assumption: 
100 yen / 1 US dollar
120 yen / 1 euro
*1 NGK ROIC = Operating income ÷ (Accounts receivable + Inventories + Fixed assets) 
Instead of “capital” and “liabilities”, this is calculated based on business assets (accounts 
receivable, inventories, fixed assets) that can be managed by business divisions
 Energy & Industry (E&I)
 Digital Society (DS)
 Environment (EN)
500
400
300
200
25.0–
30.0
60.0–
70.0
280.4
59.0
140.5
15.7
66.7
-1.5
320.0–
330.0
190.0–
200.0
70.0–
80.0
580.0–
610.0
Net sales
(left axis)
Operating income
(right axis)
600.0
90.0
0.0–
5.0
100
100
2021
After currency 
conversion
2022
2024
Vision
(2025)
50
0
0
FY2021 
 FY2024
Sales growth rate (past 3-year average)
NGK ROIC*1
High (high profitability)
Circle size represents net sales
20%
15%
10%
10%
20%
0%
5%
0%
Energy & Industry
Digital Society
Environment
(FY)
(bn yen)
The NGK Group Value Creation Story

33
NGK REPORT 2022
Improving profitability by promoting the  
NGK ROIC
On the subject of capital policy, we are focused on ensuring 
profitability that exceeds the cost of capital while maintaining 
financial soundness, profit margins, capital turnover, and 
financial leverage at sound levels consistent with our 
business strategy. Using return on equity (ROE) as a key 
management indicator, we will promote management that 
emphasizes capital efficiency. We also use return on 
invested capital (NGK ROIC: operating income ÷ business 
assets), which is closely related to ROE, as a management 
indicator. 
	
Instead of invested capital and profit after tax, we are 
adopting business assets (accounts receivable, inventories, 
fixed assets) and business unit operating income. This will 
allow business units to manage their own targets. Since 
adopting this indicator in FY2016, the concept of ROIC 
management has been adopted widely throughout the 
company. Since FY2021, we have been using an ROIC tree 
to improve our business by incorporating figures such as 
cost of sales ratio, SG&A ratio, inventory and accounts 
receivable holding months for each business division. With a 
medium- and long-term perspective on maintaining an ROE 
of 10% or higher, we have set an ROIC of 10% or higher as 
a company-wide standard, with each business setting 
targets to improve profitability, prioritize investments, and be 
conscious of the appropriate inventory levels. These efforts 
will work towards improving ROIC. 
	
In FY2021, we secured an ROE of 12.9% thanks to 
improved performance and other factors. Regarding our 
debt/equity structure, we aim for a Debt Equity ratio of 
around 0.4 to ensure we can at least maintain our current 
bond rating of A+ (R&I), while also remaining focused on 
the effective use of debt. For capital procurement, our 
principle basic policy is to procure interest-bearing debt 
NGK Group Vision: Road to 2050
Financial and Capital Strategies for Supporting Transformations
Focusing on improving both 
financial and non-financial 
value to promote medium- 
and long-term growth.
and reduce risks by diversifying debt into long-term and 
short-term loans.
Policy on profit returns
We prioritize the interests of our shareholders, and position 
sustainable improvements to corporate value and profit 
returns as one of our most important management policies. 
We will maintain a good balance between securing 
appropriate investment funds for growth and returning 
profits with a focus on capital efficiency.
	
Regarding dividends, we aim to maintain a dividend on 
equity ratio of 3% and a consolidated dividend payout ratio 
of around 30% over the medium and long term, while giving 
consideration to the link between net asset management in 
line with changes in business risks and our three-year return 
on equity (ROE). 
	
We also give consideration to cash flow forecasts and 
other factors when determining allocation. Based on this 
approach, we have decided to implement a shareholder 
dividend of 63 yen per share for FY2021.
	
We have also been conducting share buybacks to 
improve capital efficiency and enhance shareholder returns. 
Last fiscal year, we repurchased and canceled five million 
shares (9.7 billion yen). Going forward, we will continue to 
flexibly implement these measures while comprehensively 
considering factors such as growth investments, dividend 
levels, cash on hand, and share price.
ESG management and financial strategy
The NGK Group promotes management from an ESG 
perspective. We are also working to strengthen our ESG 
initiatives and enhance our financial information disclosure. 
Recent major initiatives are as follows.

34
NGK REPORT 2022
 Promoting sustainable finance
In December 2021, we issued the Group’s first green bond 
(unsecured corporate bond). We will use the capital to 
provide environmentally effective products and services, and 
to promote carbon neutrality in our business and production 
activities. We will also promote initiatives aimed at realizing 
the NGK Group Vision and the NGK Group Environmental 
Vision. Going forward, we will continue to consider the use 
of green bonds as a strategic means of raising capital.
 Information disclosure based on TCFD recommendations
In February 2020, the NGK Group announced its 
endorsement of the recommendations of the Task Force on 
Climate-Related Financial Disclosures (TCFD). In April 2022, 
we provide disclosure of information related to scenario 
analysis conducted based on the four categories 
recommended by the TCFD: governance, strategy, risk 
management, and indicators and targets. Moving forward, 
we will continue to enhance our disclosure of climate 
change-related information and continue to engage in 
environmentally friendly business activities as we strive to 
contribute to the realization of a sustainable society and 
improve our corporate value.
 Adopting NGK Value-Added as a  
new management indicator
We have introduced NGK Value-Added as a new 
management indicator. NGK Value-Added incorporates CO2 
emissions costs, labor costs, R&D costs, and ESG target 
achievement rates into operating income. The aim is to 
visualize  invisible value, such as human and intellectual 
capital, the source of future competitiveness. This also aims 
to promote efforts that reduce our environmental impact and 
ensures human rights accountability. In addition to financial 
value, such as short-term profits and medium- and 
long-term growth potential, we intend to increase our 
NGK Value-Added
(Operating income – CO2 emission costs*1 + Labor costs + R&D)  
ESG target achievement rate
Short-term profitability
Super long-term sociality
Mid to long-term growth potential
NGK Value-Added
2021
2022
(projected)
2024
(projected)
CO2 emission 
costs
R&D
Labor 
costs
Operating 
income
NGK 
Value-Added
Target:
5 to 10% of
annual growth
(FY)
*1 CO2 emission costs: Calculated based on ICP ($130/t-CO2) introduced in FY2022
The NGK Group Value Creation Story
non-financial value, which is not reflected in financial 
indicators, as part of efforts to increase our corporate value.
Engaging in IR activities focused on  
dialogue with investors and shareholders
Since the 1990s, the NGK Group has been conducting IR 
activities with the goal of improving ROE. In addition to 
holding earnings briefings for investors twice a year, we also 
conduct forums for overseas investors run by our lead 
underwriter, as well as overseas IR and IR for individual 
investors. Recently, due to the impact of COVID-19, we are 
also using online communication. We conducted roughly 130 
activities through methods including telephone interviews and 
individual visits to institutional investors last fiscal year.
	
We believe that feedback from our stakeholders is 
extremely beneficial in improving the quality of our 
management. Proactive IR activities that promote such 
dialogue will also lead to a reduction in capital costs.
	
To improve our corporate value, we will continue to focus 
on ESG perspectives and strive to enhance opportunities for 
dialogue to deepen mutual trust with all stakeholders.

35
NGK REPORT 2022
A profit center for supporting revenues  
Developing products that contribute to 
carbon neutrality
Formerly known as the Ceramic Products Business Group, the newly 
launched Environment Business Group encompasses all environ-
ment-related needs by expanding beyond automotive-related 
products to include markets related to carbon neutrality, which are 
expected to see global market expansion moving forward. The new 
group name "Environment" represents the NGK Group's commitment 
to achieving new growth by engaging in businesses that use our 
unique ceramic technologies  to make broad contribution to the 
environment. 
	
It has been nearly 50 years since we began the manufacturing 
and sales of HONEYCERAM®, ceramic substrates for automotive 
Environment 
Business
Environment Business Group
Senior Vice President
Group Executive,  
Environment Business Group
Jun Mori 
With a sense of urgency 
Aiming to grow into a second core business 
The Digital Society Business Group will aim to expand business and 
contribute to resolving issues facing a digital society by offering 
various products in the electronics field. Our most important mission is 
to grow into a second core business to follow the automotive 
products business. By 2030, we expect overall Digital Society 
Business  sales will reach a scale similar to automotive products, 
which means nearly doubling our current sales. With the awareness 
that 2030 is only eight years away, we must emphasize speed as we 
implement our business strategies. 
	
Our main growth strategy involves significantly increasing 
resources for the next-generation product development in the SPE 
Digital Society  
Business
Digital Society Business Group
Senior Vice President 
Group Executive, 
Digital Society Business Group
Hiroto Matsuda
Expand social infrastructure related  
business by shifting advanced technology 
from “products” to “services”.
The Energy & Industry Business Group strives to achieve a carbon 
neutral society by identifying customer needs and providing 
broad-based solutions to all areas of the social infrastructure business. 
	
Our main growth strategy for the energy storage business will 
focus on business innovation and growth driven by NAS battery 
systems for electric energy storage, the mainstay product for this 
business. For NAS batteries, which are garnering increased attention 
due to accelerating decarbonization efforts, it will be critical that we 
not only sell batteries, but that we sell services by providing solutions 
that incorporate renewable energy. We will build various business 
models that take advantage of the NAS battery's high capacity, high 
Energy & Industry 
Business
Energy & Industry Business Group
Senior Vice President 
Group Executive, 
Energy & Industry Business Group  
Shuhei Ishikawa
NGK Group Vision: Road to 2050
Speaking with  
key persons  
promoting Five 
Transformations
Segment-Specific Strategies for 
Achieving Our Vision

36
NGK REPORT 2022
catalytic converters, in 1976. The NGK Group possesses technology 
that we have polished over the years while continuously adapting to 
changes in society and our business circumstances. We have been 
accumulating the knowhow related to environmental purification over 
the years ,which could apply in a variety of fields.  With the 
accelerating shift from automobiles to electric  vehicles (EVs), we see 
this period of change as a major opportunity and will work to develop 
and introduce high-value-added products and services that contribute 
to carbon neutrality. Marketing is critical to quick and steady business 
expansion. We will achieve results by collaborating with the Corporate 
NV Creation, an organization specializing in marketing, to acquire 
multifaceted and comprehensive information on marketability. We have 
sent lots of personnel from our business group to the Corporate NV 
Creation, and we have great expectations for achieving innovation 
based on new concepts. At the same time, we are projecting that 
demand for products related to internal combustion engines will 
continue to grow through around 2025, and one of the important 
missions of our business group  is to support earnings as a profit 
center by applying our global stable supply system. In addition to 
existing products, we will also focus on expanding our lineup of new 
high-performance products that meet stricter exhaust gas regulations 
in various countries, including high-performance gasoline particulate 
filters (GPFs), NOx sensors for gasoline engines, and electrically 
heated catalysts (EHCs). 
	
Since the days of the former Ceramic Products Business Group, 
our business group  has embraced a culture of open communication 
and superior interdepartmental cooperation. We will maintain those 
characteristics while embracing a positive attitude that encourages 
enjoying change s. With this philosophy, we will unite as a business 
group to increase motivation and move forward while evaluating both 
our current situation and the future trends.
business. This will support business expansion and respond to the 
medium- and long-term needs of the semiconductor manufacturing 
equipment market, which is expected to see continued growth. We 
will also allocate human resources in Japan and expand partnerships 
with our customers as we work to expand business to match the 
speed of market growth in the US and Asia. For the Electronic Devices 
Business, we will continue to expand operations in response to 
increased demand for mainstay products such as piezoelectric 
micro-actuators for HDDs  and bonded wafers. At the same time, we 
will collaborate with the Corporate NV Creation on marketing for 
products facing fierce market competition such as the lithium-ion 
rechargeable battery EnerCera® and DCB and AMB substrates. In the 
Metal-related business,  demand trends for wrought products are 
strong, so we will make large-scale investments in domestic plants to 
improve domestic production efficiency. We will also share market 
information, develop applications for production technology, materials, 
and processing technology, collaborate on DX promotion, and 
improve efficiency. Through these initiatives, we will generate synergy 
between the three businesses from various perspectives and help 
stimulate business. 
	
We will work to realize the NGK Group Vision by continuously 
challenging ourselves to new endeavors, including developing new 
products and pioneering and engaging in new markets. This 
environment will create numerous opportunities for all involved. In 
particular, this will create opportunities for younger members to gain 
experience that will lead to growth. I am committed to fostering a spirit 
of taking on challenges without a fear of failure or change. I will 
maintain a keen focus on personnel development and utilization while 
aligning our efforts with head office vectors to lead us towards 
achieving our goals. 
energy density, and long service life. In addition to providing value as 
an emergency power supply solution for BCP and collaborating with 
local governments on the local production and consumption of 
electricity, we will promote NAS batteries for their use as “adjustment 
power” that contributes to stable power supply by bundling the 
electricity stored in NAS batteries located in various places. In the 
insulator business, domestic electric power companies continue to 
limit their capital investments. However, as a top insulator 
manufacturer, we will continue to manufacture and sell high-quality, 
highly reliable insulators for power transmission, substation,  and 
distribution, and related equipment. We also are anticipating 
medium- to long-term market change, and will respond flexibly and 
efficiently to strengthen profitability. Due to the effects of streamlining 
and price revisions, in the fiscal year ending March 31, 2022, the 
insulator business returned to profitability for the first time in six years. 
In the industrial process business, we provide cutting-edge ceramic 
technologies to industries seeking new technologies, including 
membrane separation systems for pharmaceuticals and chemicals 
equipped with both ceramic and organic membranes, and high-
performance glass lining  products with antistatic functions. Sales of 
firing furnaces for electronic components and cathode materials for 
lithium-ion batteries were also strong. We will continue to introduce 
products and equipment that contribute to social and environmental 
conservation, and carbon neutrality. We will also target the 
pharmaceutical and chemical industries as we look to expand our 
business areas.
	
I feel very fortunate to be involved in three businesses as the 
Business Group Executive during this period of change. I will apply my 
own experience in the electronics field and apply a sense of urgency 
as we work to advance the development and expansion of the 
solutions business.
The NGK Group Value Creation Story

37
NGK REPORT 2022
The fiscal year ended March 2022 resulted in increased sales and profits. 
Although the global automotive market was impacted by a semiconductor 
supply shortage, demand for products increased due to a recovery in sales of 
passenger cars and trucks, and the impact of stricter emission regulations. 
	
For the fiscal year ending March 2023, we are forecasting net sales of 325 
billion yen and operating income of 65 billion yen, representing increased 
revenues but profit that is almost the same year on year. In addition to an 
increase in demand for GPF s and large size substrates due to stricter 
emission regulations in China, we expect an increase in sales due to increased 
demand for other products driven by a recovery in passenger car sales. 
However, in terms of profits, negative impacts such as soaring raw material 
costs and increased labor costs due to inflation are expected to offset the 
effect of higher sales.
Business overview and forecast
Providing products that respond to trends in increasingly stricter global automobile 
emission regulations. Focusing on initiatives in markets related to carbon neutrality.
Segment-Specific Strategies for Achieving Our Vision
NGK Group Vision: Road to 2050
Environment Business Group
We manufacture and sell environmental protection and 
energy-saving products all over the world including Japan, 
Europe, the United States, and China. Our products include 
ceramic substrates for automotive catalytic converters, filter 
products for removing particulate matter (PM) (diesel vehicles: 
DPFs; gasoline vehicles: GPFs), and NOx sensors for measuring 
nitrogen oxide (NOx) concentrations in automobile exhaust.  
Main markets
 Automotive market
Main customers
 Automobile manufacturers
Business operations
Main 
products
Net sales ratio  
by business
(fiscal year ended March 2022) 
PM filters (DPFs, GPFs) 
Reliably collects particulate matter 
(PM) with micropores. Removes up to 
99% of PM. Silicon carbide (left side of 
photo), which has excellent heat 
resistance, is mainly used in 
passenger cars, while lightweight 
cordierite is used in larger vehicles.
In-vehicle high-precision  
NOx sensors
Features a built-in element that applies 
the oxygen pump functions of zirconia. 
This product is chosen for installation in 
clean diesel vehicles around the world 
due to its excellent detection capabilities 
and durability.
HONEYCERAM®, Ceramic 
Substrates for automotive 
catalytic converters
Features a catalyst retained in a small 
honeycomb structure that can cover an 
area equivalent to the size of two soccer 
fields to detoxify harmful substances in 
automobile exhaust. Used by automobile 
manufacturers around the world.
57.3%
Net sales
Operating income
Environment Business
21/3
22/3
23/3
(Estimate)
248.9
292.7
325.0
21/3
22/3
23/3
(Estimate)
41.2
65.1
65.0
(bn yen)
(bn yen)

38
NGK REPORT 2022
NGK develops, manufactures and sells 
environment friendly products utilizing the 
characteristics of ceramics such as separation, 
reaction, adsorption and thermal manipulation. 
Our PM removal filters have a  membrane filter 
function boasting high separation performance 
to provide even higher functionality. We are also 
improving products for existing internal 
combustion engines.
	
Our goal is to apply the characteristics of 
ceramics in various fields such as CO2 recovery/
separation, SOEC, and methanation, in order to 
contribute to a new era of carbon neutrality. 
	
We have already begun exchanging specific 
information with customers on some 
development projects, and we will work to 
accelerate development.
Contribute to CN with advanced ceramic technology for  
both of internal combustion engines and other (various) fields
 Fulfill role as a profit center to promote resource allocation towards  
expanding sales in CN and DS related markets
 Use unique technology to develop new CN-related products and collaborate with  
the Corporate NV Creation on exploring new markets
Basic Strategies for the NGK Group Vision: Road to 2050
 Strengthen response to demand for exhaust purification systems for internal combustion engines, 
which is expected to increase until around 2025 
 Promote analysis of data obtained from manufacturing processes and improve productivity through 
automation and Manpower Saving. (Honeycomb product: Creation of next-generation honeycomb 
production system HPDX) 
 Apply DX to all processes of management, development, and production to achieve overall efficiency 
(Sensor products: Smart Operations) 
 Promote carbon-neutral initiatives in our manufacturing processes 
Individual policies
 Stricter global emission regulations 
 Expansion of motorization 
 Expansion of global decarbonization 
initiatives
 Vehicle electrification 
 Growing geopolitical risks 
 Material technology, product development, 
mass production technology, and the 
on-site Gemba capabilities to embody them
 The ability to flexibly respond to laws and 
regulations in each country, regional charac-
teristics, and demand fluctuations. Also, the 
capability to make proposals to automotive 
companies
Opportunities
Risks
Strengths
Recognition of external environment
Focus
Honeycomb 
structural reactor 
for synthetic fuel
Beryllium copper 
materials for 
hydrogen-related 
infrastructure
CO2 separation membranes 
for industrial exhaust
SOEC
CO2 separation membranes
CO2 separation and capture
CO2 recycling
Forest
Fuel/Chemicals
EOR (Enhanced Oil Recovery)
Water/CO2 electrolysis
Development of items used 
in various devices
CO2 geological 
storage
Atmospheric 
CO2 capture
DAC 
(Direct Air Capture)
CO2
CO2
CO2
CO2
CO
H2
H2
Atmospheric CO2 
adsorption modules
Methanol
CH4
Natural gas/Biogas
The NGK Group Value Creation Story

39
NGK REPORT 2022
Pursuing unique technology in the rapidly evolving field of electronics.
Contributing to solving the problems of an ever-developing digital society.
Digital Society Business Group
Net sales ratio  
by business
(fiscal year ended March 2022) 
Ceramics for semiconductor 
manufacturing equipment 
Ceramic heaters 
A stage for uniformly controlling the 
temperature of silicon wafers during the 
membrane formation process. Uses a 
unique structure comprised of a tube 
(shaft) attached to the bottom of the 
heating element stage on which the 
wafer is placed to protect the terminals 
and conductors from halogen gas.
For hard disk drives (HDDs) 
Piezoelectric microactuator
Ultra-compact piezoelectric micro-
actuators for HDDs, which are 
indispensable for the precision control of 
magnetic heads, play an active role in 
data centers around the world as devices 
that are key to providing large-capacity 
and high-reliability hard disk drives.
Beryllium copper products
In addition to the excellent electrical and 
thermal conductivity of copper, these 
products also offer high strength and 
durability. The strip is widely used as a 
high-performance conductive spring 
material in various fields such as 
automobiles, industrial equipment, and 
mobile devices.
29.4%
Digital Society Business
21/3
22/3
23/3
（予定）
1,273
1,503
1,800
21/3
22/3
23/3
(Estimate)
14.6
19.9
27.0
NGK Group Vision: Road to 2050
We manufacture and sell ceramics for semiconductor 
manufacturing equipment that contributes to improving 
semiconductor manufacturing productivity, piezoelectric 
micro-actuators required for the precision positioning of 
magnetic heads that read and write data, and beryllium copper 
products that improve the reliability of electronic devices and 
help achieve device miniaturization.
Business operations
Main markets
 Semiconductor market 
 Electronic components 
market
Main customers
 Semiconductor manufacturing 
equipment manufacturers 
 HDDs manufacturers 
 Communication device 
manufacturers
Main 
products
In the fiscal year ended March 2022, sales of products for semiconductor 
manufacturing equipment (SPE) increased thanks to an increase in shipments 
driven by favorable conditions on semiconductor markets. Demand for 
beryllium copper strip, piezoelectric micro-actuators for hard disk drives 
(HDDs), and ceramic packages were strong, resulting in increased sales.
	
For fiscal year ending March 2023, we are forecasting net sales of 180 
billion yen and operating income of 27 billion yen, both of which represent a year 
on year increase. Demand for SPE is expected to continue to grow on strong 
investment sentiment, particularly for foundries. For electronic devices, we are 
forecasting increased sales of piezoelectric elements for HDDs thanks to 
favorable data center investments as well as on demand for ceramic packages. 
In regards to Metal-related products, demand is expected to remain strong, 
particularly for industrial equipment.
Business overview and forecast
Net sales
Operating income
21/3
22/3
23/3
(Estimate)
127.3
150.3
180.0
(bn yen)
(bn yen)
Segment-Specific Strategies for Achieving Our Vision

40
NGK REPORT 2022
A ceramic circuit board that combines the high heat dissipation properties of copper with the insulation performance of 
ceramics. These products provide excellent reliability and heat conduction, and are used in the power modules that perform 
motor drive control and power conversion control for generators. In addition to the electrification of automobiles (EV/HV), we 
also forecast increased demand for renewable energy and other industrial equipment applications.
DCB*1 and AMB*2 substrates
Products with future growth potential
Focus
Insulated heat dissipation circuit board with 
high heat dissipation and electrical insulation
DCB and  
AMB substrates
Generates voltage and current 
waveforms to drive motors
Motors
Inverters
Power modules
Power 
supply
Power semiconductor chips
Coolers
HEV/EV
Industrial 
equipment
(machinery,  
wind power 
generation, etc.)
The NGK Group Value Creation Story
 Global increase in data traffic 
 Increased speeds of mobile  
communications
 Increased investments in  
semiconductors to resolve  
semiconductor shortages
 Misreading our development 
roadmap
 Trade friction and difficulty in 
procuring raw materials
 Emergence of local  
manufacturers
 Using our unique materials technology and 
manufacturing process technology to 
engage in fields that are difficult for our 
competitors 
 Closely communicating with customers to 
develop high value-added products 
Opportunities
Risks
Strengths
Recognition of external environment
 By consolidating product groups that contribute to a digital society,  
we will generate synergy by linking internal and external information. 
 Expand sales of DS-related products with a focus on semiconductor-related products,  
and aim for net sales of over 300 billion yen by 2030
 Develop carbon-neutral products for EV/HV and hydrogen-related infrastructure:  
DCB and AMB substrates, beryllium copper materials
Basic Strategies for the NGK Group Vision: Road to 2050
 Capture expanding demand for semiconductors and electronic components, make timely capital 
investments, reduce costs and improve productivity 
 Incorporate DX (data utilization, process automation) to establish smart factories 
 Early profit contributions from new products: Achieve by collaborating with Corporate NV Creation
Individual policies
*1 DCB: Direct Copper Bonding
*2 AMB: Active Metal Brazing

41
NGK REPORT 2022
Contributing to carbon neutrality and contributing to society  
by supporting infrastructure in the power and industrial fields. 
Energy & Industry Business Group
Main customers
Power- 
related fields
 Power companies 
 Engineering 
companies
Industrial 
equipment- 
related fields
 Electronic component 
manufacturers 
 Pharmaceutical 
manufacturers 
 Chemical, steel 
manufacturers, etc.
NAS battery
The world’s first commercially available 
megawatt-class energy storage system. 
This battery is unique for its ability to 
supply power at high output for long 
periods of time, and has a track record of 
operation at more than 250 locations in 
Japan and overseas.
Insulators 
Insulators play an important role in 
supporting transmission lines and ensuring 
insulation between steel towers and 
equipment. With products that include the 
world's strongest power transmission 
insulators, we support power supply with 
strength and unwavering quality that can 
withstand harsh environments.
Ceramic membrane filter Cefilt
Uses fine ceramics (long-life filter ) with 
excellent heat and chemical resistance. 
Boasts a multi-layered structure with 
good backwash regeneration. Also 
achieves high separation performance 
thanks to well-designed pore distribution.
13.2%
Energy & Industry Business
21/3
22/3
23/3
(Estimate)
69.0
67.5
75.0
(4.9)
(1.4)
(2.0)
21/3
22/3
23/3
(Estimate)
NGK Group Vision: Road to 2050
Net sales ratio  
by business
(fiscal year ended March 2022) 
Starting from this April,  we adopted a new structure that merges our 
existing power-related businesses, the insulator business and the 
energy storage business, with the industrial process business into a 
new business group operating in the power and industrial 
equipment-related fields. We will provide products and services that 
support social infrastructure and meet needs related to carbon 
neutrality and environmental conservation.
<Products of each business>
 Insulator business: Insulators for power transmission, substation and distribution, 
and related equipment.
 Energy storage business: NAS battery
 Industrial process business: Firing furnaces, drying furnaces, refractory products, 
pharmaceutical  water equipment, ceramic membranes, low-level radioactive 
waste treatment systems for nuclear power plants, etc.
Business operations
Main markets
 Power-related fields 
 Industrial equipment-related 
fields
Main 
products
In the fiscal year ended March 2022, insulator business net sales decreased 
due to continued constraints on capital investments among domestic power 
companies and railway companies, and due to sluggish shipments of NAS® 
batteries. However, we were able to reduce losses through streamlining 
initiatives in the insulator business as well as thanks to the benefits of price 
revisions. Looking ahead to fiscal year ending March 2023, in the Industrial 
Process Business, we are forecasting increased demand for firing furnaces for 
lithium-ion battery cathode materials and electronic components, as well as 
increased revenues from growth in overseas exports for the Insulators Business. 
However, we expect continued losses due to the impact rising raw material 
prices and difficulties in procuring parts will have on the Insulators Business and 
the ES Business. Looking at the Industrial Process Business, in addition to 
demand related to firing furnaces, demand for pharmaceutical water equipment 
is also strong, and inquiries for NAS batteries are booming on global growth in 
the adoption of carbon-neutral systems. We are advancing preparations to 
strengthen profitability moving forward.
Business overview and forecast
Net sales
Operating income
(bn yen)
(bn yen)
Segment-Specific Strategies for Achieving Our Vision

42
NGK REPORT 2022
In recent years, there have been concerns about 
how declines in drift ice in the Sea of Okhotsk will 
impact the fishing and tourism industries. Abashiri 
City must engage in further efforts to address the 
global issue of reducing greenhouse gas 
emissions. Abashiri City also experienced a 
large-scale blackout due to the 2018 Hokkaido 
Eastern Iburi earthquake. There is a need for 
concrete measures related to emergency power 
supply in the event of disasters that could occur at 
any time. NGK established Abashiri Electric Power, 
a new local electric power company, with the aim 
of resolving these regional issues. 
	
Possessing our own solar power generation 
equipment and NAS batteries, we aim to establish 
a model for the local production and consumption 
of renewable energy that does not rely on the 
renewable energy feed-in tariff (FIT) system. In 
normal times, the stable use of renewable energy 
through solar power generation and shifting energy 
from solar power generation using NAS batteries 
will enable the supply of power collected through 
solar power generation, even at night. This system will also 
provide power in emergencies such as natural disasters. 
We will strengthen our ability to respond to increasingly 
severe natural disasters, including by supplying power to 
disaster prevention sites through private power lines.
Contribution to carbon neutrality through Abashiri Electric Power
Local production and local consumption of renewable energy
Focus
Abashiri Electric Power
In-house solar power 
generation equipment and 
storage batteries
Large-capacity energy storage 
system called NAS battery
Power supply to disaster 
prevention sites
Supply power
Solar power sales
Brokerage contract
Retail supply contracts 
(brokerage)
Includes PV power generated 
by Abashiri Electric Power
Providing power with 
added value of energy 
conservation
Public facilities such as elementary 
and junior high schools
NGK Okhotsk
(NGK Group)
Hokkaido Electric Power
Solar power 
equipment
The NGK Group Value Creation Story
 Global trend toward carbon 
neutrality 
 Growth in renewable energy
 Promotion of digital  
infrastructure
 Prolonged supply chain  
disruption
 Stagnant economic growth 
 Emergence of competition
 Long history of networks in a wide range  
of industries
 Ability to provide value/solutions,  
including engineering
 Proprietary, high-quality ceramic  
manufacturing technology
Opportunities
Risks
Strengths
Recognition of external environment
 Establish a comprehensive energy business with sights on all aspects of energy 
 Capturing the growing CN-related market, establish sales of products and services in  
the electric power and industrial fields, increase earnings
Basic Strategies for the NGK Group Vision: Road to 2050
 Strengthen the profitability of existing businesses by efficiently utilizing the  
portfolio of the three businesses 
 Apply NAS batteries to expand solutions business, including offering solutions for local production for 
local consumption of renewable energy for local governments and proposals for improving resilience
 Collaborate with partner companies to expand sales and reduce costs for NAS batteries 
 Expand the Industrial Process Business to overseas markets
Individual policies
Energy 
storage
Energy 
storage

43
NGK REPORT 2022
02
SECTION
Foundation that  
Supports the NGK 
Group’s Sustainable 
Value Creation
45 ESG Management
47 Environmental
57 Social
67 Governance
83 Dialogue with Outside Directors
Contents

44
NGK REPORT 2022
Improving 
Our Sustainability
 Stance on promoting ESG towards achieving sustainable growth 
 Initiatives for achieving our Environmental Vision 
 Information disclosure based on TCFD recommendations
 Developing human resources capable of generating corporate value
 Corporate governance for increased management transparency and effectiveness
 Challenges and expectations discussed by outside directors
Highlights of Section 02

45
NGK REPORT 2022
ESG Management
ESG is central to management and 
will facilitate sustainable growth of the NGK Group
With the Sustainable Development Goals (SDGs) adopted by 
the United Nations in mind, the NGK Group seeks to provide 
new value to society with our unique ceramic technologies 
and thereby contribute to realizing a sustainable society and 
winning positive expectations and trust from society. This is 
our basic view on sustainability. We formulated NGK Group 
Vision: Road to 2050, based on the NGK Group Philosophy 
of enriching human life by adding new value to society.  
We will continue to leverage our unique ceramic technologies 
to help achieve carbon neutrality and a digital society.
Basic View
ESG (Environmental, Social, Governance) is central to the 
management of the NGK Group. As we expand our overseas 
business, we seek to ensure greater management 
transparency and autonomy by maintaining an environment 
that cultivates a sense of fairness in every member of the 
NGK Group. This encourages them to make decisions and 
act according to international standards.
	
In 2019, the ESG Committee was established as a venue 
for sharing information, exchanging opinions, and discussing 
policies at the management level. In 2021, the ESG 
Management Department was established to implement 
ESG-related activities and improve communication of 
information about these activities across the NGK Group. In 
April 2022, the ESG Committee was reorganized as the ESG 
Management Committee, which is chaired by the president. 
This committee was reorganized to strengthen initiatives to 
address sustainability issues that incorporate elements of 
ESG and the SDGs and to better oversee the Board of 
Directors.
ESG Action System
ESG Action System
ESG Management
Board of Directors
(Report)
(Individual deliberation items)
Executive Committee
Capital investments Committee
Quality Committee
Environment, Safety and Health Committee, etc.
Compliance Committee
HR Committee
Development and Commercialization Committee
Governance Subcommittee
Supply Chain Subcommittee
TCFD Subcommittee
Environment Action Subcommittee
Social Contribution Activities Subcommittee
Chair: President
Secretariat: ESG Management Department
ESG Management Committee

Foundation that Supports the NGK Group’s Sustainable Value Creation
46
NGK REPORT 2022
NGK Group Signs UN Global Compact
The NGK Group has pursued business in the energy, 
ecology, and electronics sectors since its founding in 
an effort to keep nature’s air and water clean and thus 
help people live a comfortable, healthy life. Many of 
our technologies and products contribute to achieving 
the SDGs. We will continue to provide new value by 
leveraging our unique ceramic technologies to help 
create a sustainable society.
Position on SDGs
Key ESG Activity Themes in FY2022
Key Themes
Main Activities
Activity Leader
Environmental initiatives 
aimed at achieving  
NGK Group 
Environmental Vision
• Internal carbon pricing, energy-savings, shift to non-fossil fuels, and use of  
renewable energy to achieve targets net zero CO2 emissions
• Visualization of greenhouse gas emissions during the lifecycle of main products
• Formulation and follow-up on 5-Year Environmental Action Plan and annual plan
• Response to facilitate a recycling-oriented society
• Response to maintain and enhance biodiversity
Environment Action 
Subcommittee
Climate change 
countermeasures
• Specific initiatives on the four themes outlined in the TCFD recommendations: 
Governance, Strategy, Risk Management, and Metrics and Targets
TCFD Subcommittee
Initiatives to  
ensure respect for  
human rights
• NGK Group human rights due diligence
• Promotion of hiring, cultivation of human resources and improvement of labor 
practices
• Diversity and inclusion
HR Committee
Environment, Safety and  
Health Committee
Supply chain 
development
• Implementation of CSR procurement  
(human rights, labor, environment, fair business activities, etc.)
• Assessment of Scope 3 in carbon neutrality
Supply Chain Subcommittee
HR Committee
Continuous review  
of the governance system
• Integration of management with sustainability issues
• Strengthening the supervisory function of the Board of Directors
• Compliance with Corporate Governance Code
• Ensuring appropriate information disclosure and transparency
Governance Subcommittee
Social Contribution 
Activities
• Summary and disclosure of NGK Group’s social contribution activities
• Support for foreign nationals
Social Contribution Activities 
Subcommittee
Meeting No.
Date
Topics of Discussion
1st
April 2021
• Decisions on FY2021 action plans and key themes
2nd
June 2021
• Review of Board of Directors and Executive Committee operation
3rd
July 2021
• Planning and progress on FY2021 Net Zero CO2 Emissions project
• Summary of the fourth 5-Year Environmental Action Plan, and annual targets of the fifth 5-Year Environmental 
Action Plan
4th
October 2021
• Planning and progress on the FY2021 Carbon Neutrality (CN) new business promotion project
5th
November 2021
• Social Contribution Activities
• Compliance with the revised Corporate Governance Code
6th
December 2021
• Report on Net Zero CO2 Emissions project
• Progress report on the TCFD Task Force
7th
February 2022
• Implementing ESG management (activity outline for next fiscal year)
8th
March 2022
• Measures to improve ESG ratings
9th
March 2022
• Information disclosure based on TCFD recommendations
• Support for Science Based Targets (SBT) and Renewable Energy 100 (RE100)
FY2021 ESG Committee Record
The NGK Group is a signatory to the United Nations Global 
Compact, which is endorsed by the United Nations and advocates 
for independent action by companies. We believe that addressing a 
broad range of social problems through our business activities is an 
important corporate social responsibility and measure our progress 
against indicators such as the Sustainable Development Goals 
(SDGs). 
	
The UN Global Compact is a global framework 
for realizing sustainable growth through companies 
and organizations acting as good members of 
society.

47
NGK REPORT 2022
Guidelines for Environmental Action
1.	Strive to develop, design, and manufacture products that contribute to the environment and products with low environmental impact.
2.	Work to reduce the environmental impact arising from business activities. Conduct design reviews to scientifically study and evaluate 
the environmental impact of business activities
• Promote energy conservation measures for all processes and facilities, and make efforts to control CO2 emissions.
• Promote resource saving and recycling, and make efforts to control the generation of by-products.
• Manage the risks of water resources and strive to make effective use of water resources through our business activities.
• Through the appropriate use and control of chemical agents, work to reduce the risks inherent in toxic substances.
• Give precedence to environmentally friendly materials, parts, products, and facilities in procurement and purchasing, strengthening 
cooperative alliances with our business partners.
3.	Enhance environmental management systems from a global perspective while continuously reducing our environmental impact.
4.	Not only abide by environmental laws, regulations, and other requirements, but also institute voluntary standards and work to improve 
our own environmental conservation.
5.	Provide environmental information to the public at the appropriate time and pursue dialogue with all stakeholders. Proactively develop 
social action programs. Also, engage in education and publicity in order to improve employees’ environmental consciousness.
Toward carbon neutrality
We will develop and provide 
products and services that 
contribute to the realization of a 
carbon-neutral society and apply 
them to our own business activities 
in order to achieve our goal of net 
zero CO2 emissions by 2050.
Toward a  
recycling-oriented society
We will contribute to the realization 
of a recycling-oriented society by 
reducing our natural resource 
consumption and developing and 
providing resource-efficient 
products.
Toward harmony  
with nature
We will minimize our environmental 
impact on ecosystems and raise 
stakeholder awareness through 
educational activities in order to 
achieve harmony with nature.
The NGK Group will contribute to the realization of society’s direction toward 
“carbon neutrality,” “a recycling-oriented society,” and “harmony with nature” 
through its business activities.
NGK Group  
Environmental Vision
Environmental
Recognizing that protecting the environment is a vital issue 
that all of humanity must face, the NGK Group formulated its 
Core Policy on the Environment in April 1996 in order to bring 
its corporate activities into harmony with the environment. 
Based on the NGK Group Environmental Vision announced 
in April 2021, we will promote initiatives to contribute to 
carbon neutrality, a recycling-oriented society, and harmony 
with nature. On the basis of this policy, the NGK Group 
works to reduce the environmental impact of business 
activities, and actively strives to help protect the environment 
by developing products and technologies to that end.
*Revised April 2021
NGK’s Core Policy on the Environment
In April 2021, we announced the NGK Group Environmental 
Vision, which clearly states our goals of contributing to 
carbon neutrality through our products and services, and 
achieving net zero CO2 emissions for the NGK Group in 
2050. The entire Group is pushing ahead on initiatives aimed 
at achieving the vision.
NGK Group Environmental Vision
Policy, Vision, and Action Plan
Striving for carbon neutrality, a recycling-oriented society, 
and harmony with nature by actively working to  
reduce our environmental impact

Foundation that Supports the NGK Group’s Sustainable Value Creation
48
NGK REPORT 2022
Strategy
1
Development and 
provision of carbon 
neutrality (CN)-related 
products/services
CCU/CCS/hydrogen related 
and renewable-energy related
NAS
batteries
Zinc rechargeable batteries
Develop and provide carbon neutrality-related products
Atmospheric CO2 adsorption module
Subnano-ceramic membranes
for industrial exhaust gas
Subnano-ceramic membranes
Honeycomb structural reactor
for synthetic fuel
SOEC
(solid oxide electrolysis cells)
Strategy
2
Top-down enhancement
of energy-saving
Accelerate capital expenditures
by introducing in-house
carbon prices
Introduction of high-efﬁciency equipment (low-temperature waste heat recovery)
DX for productivity increase and energy management
Strategy
3
Promotion of
technical innovation
Fuel conversion to hydrogen, etc.
and own veriﬁcation/application
of CCU/CCS
Technical development
Application to production equipment
Strategy
4
Expanded use of
renewable energy
Own photovoltaic power generation 
installation utilizing NAS batteries/
zinc rechargeable batteries and 
renewable energy procurement
Installation of renewable energy
Procurement of renewable energy
CO2 emissions
(10,000 metric tons)
100
50
0
2013
(reference year)
2050
(Fiscal year)
2020
2025
2030
2040
2013
730,000
2019
870,000
2025
550,000
2030
370,000
50%
Net zero
Accelerate global renewable energy and
hydrogen/CCU/CCS infrastructure
development with our technology to
move toward net zero.
The NGK Group has drawn up its Carbon Neutrality Strategic 
Roadmap comprising four strategies as a guide to realizing 
the goals of the NGK Group Environmental Vision.
	
We have established a Group-wide target of net zero 
CO2 emissions by 2050, with milestone targets along the way 
of 550,000 metric tons by FY2025 (25% reduction compared 
with the FY2013 reference year) and 370,000 metric tons by 
FY2030 (50% reduction). In the future, we will consider 
advancing our efforts to achieve net zero ahead of schedule 
by promoting the development of related technologies such 
as hydrogen, CCU and CCS (carbon capture, use and 
storage).
Carbon Neutrality Strategic Roadmap
Four Strategies
Carbon Neutrality Strategic Roadmap

49
NGK REPORT 2022
In FY2021, we established the Fifth 5-Year Environmental 
Action Plan, which encompasses our environmental action 
targets through FY2025.
	
This is the first 5-year plan aimed at realizing the NGK 
Group Environmental Vision announced in April 2021, which 
targets net zero CO2 emissions by 2050. The Environmental 
Vision’s key themes are “carbon neutrality,” “a recycling-
oriented society,” and “harmony with nature.”
5-Year Environmental Action Plan (FY2021-2025) 
Reference Year: FY2013 (for some, FY2019)
Target Year: FY2025
Control scope: Consolidated (for some, Japan)
Reference Year, Target Year, Control Scope
Environmental
Category
Item
KPI
FY2025 Target
FY2022 Target
Related SDGs
Initiatives toward 
carbon neutrality
Reduce CO2 emitted 
by manufacturing 
activities
CO2 emissions 
(consolidated)
550,000 metric tons
(Reduced by 25% from 
FY2013)
600,000 metric tons
(Reduced by 18% from 
FY2013)
Rate of renewable 
energy usage 
(consolidated)
50%
25%
Reduce CO2 emitted 
across value chain
Plan progress
∙ Expand scope of Scope 3 
calculation
∙ Life-cycle assessment 
(LCA) of major products
∙ Scope 3 consolidated 
disclosure
∙ Expand scope of LCA 
calculation
Initiatives toward a 
recycling-oriented 
society
Reduce waste emitted 
from manufacturing
Basic unit per net 
sales of waste emitted 
(consolidated)
Reduced  
by 50% from FY2013
Reduced  
by 46% from FY2013
Reduction rate against 
BAU for waste emitted 
(consolidated)
Reduced  
by 30% from FY2013
Reduced  
by 27% from FY2013
Promoting Resource 
Recycling
Recycling rate (Japan)
Maintained at least 99%
At least 99%
Manage and respond 
to water resource risks
Basic unit per net 
sales of water 
consumption 
(consolidated)
Maintain FY2019 levels
FY2019 level
Initiatives toward 
harmony with 
nature
Promote biodiversity 
conservation
Plan progress
Expand and enhance 
actions aimed at Post-2020 
Global Biodiversity 
Framework targets
Research on Japan and 
overseas trends
Contributions to 
environmental 
society
Develop and distribute 
products/services 
contributing to 
environmental 
protection
Number of registered 
products
Increase number of 
CN-related products/
services registered
Increase registered 
products
Promote CSR 
procurement
Plan progress
Ascertain environmental 
data of suppliers
Specific response to 
suppliers
Promotion of 
environmental 
communication
Contribute to local 
communities
Plan progress
Continually enhance actions 
partnering with local 
communities
Collaboration with EPOC 
and Aichi Mirai Forum
Increase environmental 
awareness
Plan progress
Continually enhance 
environmental training and 
information disclosure
Publicize NGK Group 
Environmental Vision

Foundation that Supports the NGK Group’s Sustainable Value Creation
50
NGK REPORT 2022
The conventional KPI used for CO2 has been basic unit per 
net sales; however, we have changed this to CO2 emissions 
volume in order to link it to our environmental vision target. 
The intent of this change is to make it easier to gauge our 
progress towards our goal of net zero emissions by 2050,  
as well as our milestone target of a 50% reduction (370,000 
metric tons*1) in CO2 emissions volume by 2030 compared 
with the reference year of FY2013. Also, in order to facilitate 
action aimed at expanding the use of renewable energy,  
we have established a target for renewable energy use rate 
of total energy usage throughout the Group. Achieving this 
target will not only bring the NGK Group closer to achieving 
net zero carbon emissions but also help promote more 
widespread adoption of renewable energy in society.
	
The graph at right shows the trend in CO2 emissions.  
In FY2021, NGK exceeded its emissions target of 700,000 
metric tons and achieved 620,000 metric tons. We will 
continue to work toward the FY2025 and FY2030 targets.
Climate Strategy/Initiatives Toward Carbon Neutrality
As the NGK Group strives toward the realization of a 
sustainable society, we see our approach to protecting 
biodiversity as an important issue, and are carrying out the 
following initiatives. In FY2021, we considered a target for 
post-2020 biodiversity and also learned the general outlines 
of the Task Force on Nature-related Financial Disclosures 
(TNFD) and SBTi-N (SBTi targets for nature). Hereafter, we 
plan to lay out a roadmap and policies toward 2050.
Initiatives for Harmony with Nature
Achieving Our Environmental Vision
Trend in CO2 Emissions 
(all NGK Group production sites)
(10,000 metric tons)
(Fiscal year)
2013
(reference year)
2025
Target
2030
Target
2019
2020
2021
2022
73
(base)
100
80
60
40
20
0
87
76
70
62
60
55
37
FY2025 Target
FY2030 Target
CO2 emissions
Target
From the perspective of resource recycling, the NGK Group 
has long set high targets and achieved them by pursuing 
reduction in the volume of waste generated and improving 
resource recovery. We also set a volume target for the 
amount of water used for the first time in our Fifth 5-Year 
Environmental Action Plan and are pursuing effective use of 
water resources. In the future, we will consider our policy for 
targeting 2050 by minimizing resource use, recycling in the 
manufacturing process and products, and other efforts to 
achieve a circular economy. 
	
The graph at right shows the total amount of waste 
generated per 100 million yen in sales. We are making steady 
progress towards the FY2025 target.
Initiatives Targeting a Recycling-oriented Society
Trend in Waste Generated (metric tons per 100 million 
yen in sales; all NGK Group production sites)
Basic unit per net sales (metric tons/100 million yen)
(Fiscal year)
2013
2025
2017 2018 2019
2014 2015 2016
2020 2021
18.7
(Base)
20
15
10
0
15.7
14.9
15.0
13.3
12.8 12.5
10.3
10.5
(-44%)
9.4
2025
Per unit sales
Ultimate goal
of 9.4 (-50%)
Per unit sales results
Per unit sales
Target
*1 The calculation standards for emissions have been revised to match the market 
standards stipulated by the GHG Protocol. More specifically, the electric power 
factor (factor for converting electricity used to CO2 emissions) will change from the 
existing fixed factor to the actual results of the electric power companies each fiscal 
year. This will reflect the renewable energy utilization rate.

51
NGK REPORT 2022
The NGK Group is pursuing initiatives to reduce CO2 
emissions outside of its own business locations. These are 
called Scope 3 emissions. In FY2021, we calculated CO2 
emissions in all upstream and downstream categories of 
Scope 3. We will begin to ascertain environmental impact in 
addition to the cooperation on CSR procurement requested 
of our suppliers to reduce upstream emissions in the future. 
NGK will also pursue development of products and services 
that will contribute to reduction in downstream emissions and 
going carbon neutral.
Reducing CO2 Emissions in Scope 3
Internal carbon pricing (ICP) refers to the establishment and 
use of in-house carbon pricing for the purpose of promoting 
decarbonization-focused investment and policies. Setting 
internal pricing for greenhouse gas emissions (GHGs) 
enables the company to convert GHG emissions to a 
financial indicator. TCFD also recommends ICP as a tool for 
companies to ascertain risks and opportunities associated 
with the transition to a low-carbon society.
	
To achieve the target of net zero CO2 emissions by 2050 
raised in the Environmental Vision at NGK, we are 
considering the use of ICP to promote investment in 
high-efficiency equipment and equipment related to 
renewable energy. The operating assumption for FY2022 is 
$130/t-CO2.
Introduction of Internal Carbon Pricing
In December 2021, the NGK Group issued its inaugural 
green bond (unsecured corporate bond), which aims to 
achieve its goals of NGK Group Vision: Road to 2050 and 
NGK Group Environmental Vision. The proceeds of the green 
bonds will be used to finance carbon-neutral R&D and the 
Group’s decarbonization projects, all designed to put the 
vision into practice. NGK’s green bond framework has 
received the highest rating of Green 1 (F) in the JCR Green 
Finance Framework Evaluation of Japan Credit Rating 
Agency, Ltd. (JCR), a third-party agency.
*1 Green bonds: Bonds issued with limits on the use of proceeds, which is specifically 
for projects that improve the environment
Use of Green Bonds*1
The external organizations listed at right evaluate NGK on 
environmental management and ESG-related elements.
	
In FY2021, we were ranked B by CDP-Climate Change 
and CDP-Water Security and A by CDP SUPPLIER 
ENGAGEMENT.
Evaluation by External Organizations
Rating Indices
Survey Year
2017
2018
2019
2020
2021
CDP Climate Change
B
B
A-
B
B
CDP Water Security
B
B-
B-
B
B
CDP SUPPLIER 
ENGAGEMENT
B
B
B
B
A
Nikkei Environmental 
Management Survey
50th
62nd
—
—
—
Environmental

Foundation that Supports the NGK Group’s Sustainable Value Creation
52
NGK REPORT 2022
Information Disclosure Based on TCFD Recommendations
In February 2020, the NGK Group announced our support for 
recommendations issued by the Task Force on Climate-
Related Financial Disclosures (TCFD) created by the Financial 
Stability Board (FSB). Since then, we have evaluated how to 
apply the TCFD framework towards resolving issues facing 
our Group operations, such as the risks and opportunities 
posed by climate change, and towards necessary information 
disclosure. Below, we disclose information related to 
scenario-specific analyses conducted based on the four 
themes outlined in the TCFD recommendations: Governance, 
Strategy, Risk Management, and Metrics and Targets.
	
NGK continues to analyze these issues in greater depth, 
disclose more information, and engage in dialog with 
stakeholders. We also continue to strive for sustained growth 
of our business by clarifying the impact of climate change-
related issues on business and taking strategic action in 
response.
*TCFD: The Task Force on Climate-Related Financial Disclosures was established by 
the Financial Stability Board (FSB). The G20 Osaka Summit in June 2019 provided the 
impetus for many Japanese companies to announce their endorsement of the TCFD 
recommendations. (As of March 31, 2022, 758 companies and organizations have 
announced endorsement.)
Climate Change Response Framework
In April 2021, we announced the NGK Group Vision: Road to 
2050. In this Group Vision, we position responding to ESG 
issues as a core management theme and outline the goal of 
being a company that contributes to carbon neutrality and the 
digital society using our ceramic technologies. Recognizing 
climate change response as one of the highest-priority issues 
to achieving sustainability for our planet, we drafted the NGK 
Group Environmental Vision as an extension of the NGK Group 
Vision. In this Environmental Vision, we outline achieving net 
zero CO2 emissions for our business activities by 2050. In 
terms of specific actions, we have set KPI and annual targets 
to achieve in our 5-Year Environmental Action Plan. These are 
deliberated in ESG Management Committee meetings chaired 
by the president and reported to the Board of Directors (at 
least once per year). We also have incentivized CO2 emissions 
reduction by adding achievement benchmarks to the 
performance-linked bonus evaluation criteria for directors and 
executive officers.
	
We established a TCFD Subcommittee within the ESG 
Management Committee. This subcommittee includes 
members from relevant divisions who gather to evaluate 
measures for information disclosure based on TCFD 
recommendations. The subcommittee’s results are then 
deliberated by the ESG Management Committee before being 
reported to the Board of Directors. We also established an 
Environmental Action Subcommittee within the ESG 
Management Committee. This subcommittee is focused on 
achieving carbon neutral business activities by no later than 
2050, one of the goals outlined in our Action Plan. The 
subcommittee works towards this goal by promoting 
measures such as energy conservation and furnace fuel 
conversion.
	
The ESG Management Committee submits reports on its 
deliberations, including ESG issues such as our disclosure 
response for the CDP (former name: Carbon Disclosure 
Project), to the Board of Directors (at least once per year).
Governance
For reference:	NGK Group Vision 
 pages 17-18 
	
NGK Group Environmental Vision 
 page 47
Executive Committee
Net Zero CO2 Emissions project
TCFD Subcommittee
Environment Action 
Subcommittee
Development and Commercialization Committee
Capital investments Committee
Quality Committee
Environment, Safety and Health Committee
Compliance Committee
HR Committee
Chair: President
ESG Management Committee
ESG Management Department
Board of Directors

53
NGK REPORT 2022
Strategy
In April 2021, we announced the NGK Group Vision: Road to 
2050, which outlines our vision through 2050. At the core of 
this Vision is how we define what we want to be: A company 
that contributes to carbon neutrality and the digital society 
using our ceramic technologies. We are shifting our business 
structure so that by 2050, carbon neutral products and 
products related to the formation of a digital society comprise 
80% of our sales.
	
Along with the NGK Group Vision, we also drafted the 
NGK Group Environmental Vision. In line with this Vision, we 
will develop and offer products and services that contribute 
to the realization of a carbon neutral society. At the same 
time, we will apply the policies of this Vision towards Group 
business activities to aim for net zero CO2 emissions by 
2050. As part of this initiative, we drafted our Fifth 5-Year 
Environmental Action Plan. This plan outlines targets for the 
environmental activities we will conduct between FY2021 
and FY2025.
We applied the risk and opportunity themes outlined in TCFD recommendations to analyze the risks, opportunities, and potential 
impact of climate change as it relates to NGK Group business.
(1) Timeframes set: Short-term, Medium-term, and Long-term
Timeframe
Reason for Setting
Short-term
FY2025
Final fiscal year of the Fifth 5-Year Environmental Action Plan
Medium-term
FY2030
Interim goal year of the NGK Group Environmental Vision
Long-term
FY2050
Goal year of the NGK Group Vision and the NGK Group Environmental Vision
Assumptions
Environmental
(2) Scenarios: 1.5°C Scenarios and 4°C Scenarios
(3) Material risks and opportunities: We conducted qualitative assessments while referencing the risk assessment criteria for all 
Group companies.
Furthermore, this analysis is a method of evaluating our responses to climate change-related risks and opportunities.  
This analysis may differ from the future vision we outline in the NGK Group Vision.
Scenarios
Summary
Main External Scenarios Uused as Reference
1.5°C Scenarios
Rapid changes in policy, regulatory systems, and markets to aim for 
carbon neutral by 2050 and limit the average global temperature increase 
to 1.5°C compared to pre-industrial revolution temperatures.
International Energy Association (IEA) Net 
Zero by 2050 scenario
SSP1-2.6 scenario, etc.
4°C Scenarios
Lack of progress in government policy, regulatory systems, or social 
initiatives result in an average global temperature increase of 4°C 
compared to pre-industrial revolution temperatures. Massive impact from 
disasters and other events caused by climate change.
SSP5-8.5 scenario, etc.
General Strategy
Climate Change Risks and Opportunities
For reference: Particularly Important Risks and Opportunities 
 pages 55-56

Foundation that Supports the NGK Group’s Sustainable Value Creation
54
NGK REPORT 2022
The NGK Group manages the day-to-day risks that impact 
our Group, including risks related to climate change, based 
on a related-position system and in accordance with our 
Basic Rules of Crisis Management. Furthermore, we work to 
avoid and prevent serious risks through the activities of the 
various committees established within the company. In cases 
of particularly serious risks, the Corporate Planning Office 
Executive Officer may decide to convene a response 
committee, which includes participation by the Company 
president, to address said risk.
Risk Management
For reference: Risk Management Framework 
 page 80
For reference: Risk Identification Process 
 page 80
All risks with the potential to impact the operations or 
financial status of the NGK Group are organized and 
re-evaluated to identify serious risks. Those risks are 
deliberated by the ESG Management Committee before 
submitting a final report to the Board of Directors on Group 
risks requiring management.
	
For risks related to climate change, the TCFD 
subcommittee within the ESG Management Committee 
creates scenarios and conducts a scenario analysis to 
identify serious risks. Through this process, we extract risks 
and opportunities, and draft response strategies. These 
results are deliberated by the ESG Management Committee 
and then a report is submitted to the Board of Directors.
Risk Management Process
We drafted the Carbon Neutrality Strategic Roadmap to 
promote achievement of goals that will enable us to realize 
the NGK Group Environmental Vision. We set milestone 
targets ahead of our 2050 goal of net zero CO2 emissions for 
the entire Group. These milestone targets call for a 550,000 
metric tons reduction in missions by 2025 (25% reduction 
compared to FY2013 (reference year)) and a 370,000 metric 
tons reduction by FY2030 (50% reduction compared to 
FY2013).
	
We drafted our Fifth 5-Year Environmental Action Plan to 
help realize the NGK Group Environmental Vision. This plan 
outlines targets for the environmental activities we will 
conduct between FY2021 and FY2025. The objective of this 
Plan is to make it easy to understand our progress towards 
net zero by 2050 and our 2030 milestone target of a 50% 
reduction compared to 2013. As part of our initiatives to 
expand our use of renewable energy, we set new targets for 
renewable energy utilization rates that we apply to electricity 
consumption for the entire Group. We also set targets to 
increase the number of products registered as carbon 
neutral-related products.
	
The TCFD recommends disclosing the ratio of assets and 
businesses vulnerable to physical risks as a benchmark. In 
response, we assessed the depths of floods caused by river 
floods and storm surge at the NGK Group manufacturing 
sites around the world. Using simulations based on the 
Climate Score Global (CSG) model developed by Jupiter 
Intelligence in America, we conducted assessments, 
including for future climate, of manufacturing site locations at 
a resolution of 90m.
	
From these assessments, we learned that, in a 4°C 
scenario (SSP5-8.5), there are regions where the risk of 
water incursion from flooding or high tide with a likelihood of 
occurring once every 100 years will be higher in 2050 
compared to 2020. The NGK Group is already implementing 
measures from the perspective of advancing our BCP and 
we will continue to evaluate and implement necessary 
measures.
Metrics and Targets
CO2 emissions Scope 1∙2
https://www.ngk-insulators.com/en/sustainability/environment-performance.html
CO2 emissions Scope 3
https://www.ngk-insulators.com/en/sustainability/environment-performance.html
LINK
For reference:	NGK Group Environmental Vision 
 page 47
	
Carbon Neutrality Strategic Roadmap 
 page 48
	
5-year Environmental Action Plan 
 page 49

55
NGK REPORT 2022
Environmental
(2) Physical Risks associated with advancing climate change (mainly 4°C scenario)
Category
Summary of Assumed Scenario
Business Risks & Opportunities
Sudden
• Frequency of flooding increasing in regions such as Japan and Asia.
• The frequency of violent typhoons increasing.
Impact of wind and flood damage on 
factories and supply chains
Risks
Chronic
Sea levels continue to rise.
Impact of storm surge on coastal factories
Risks
*Short for Science-based Targets, an initiative demanding that companies establish CO2 emission reduction goals that are based on scientific data.
(1) Carbon Neutral Society Transition Risks (1.5°C scenario)
Particularly Important Risks and Opportunities
Category
Summary of Assumed Scenario
Business Risks & Opportunities
Policy/Legal
• Rapid reduction in emissions required to achieve carbon neutral by 2050.
• Adoption of carbon pricing against CO2 emissions of our company and our
supply chain.
   2030: 130$/t-CO2
   2050: 250$/t-CO2
Increased cost of responses to further 
reduce greenhouse gas emissions
Risks
Increased costs due to adoption of carbon 
pricing
Risks
Technology
Growing battery demand leading to decline in prices for rechargeable 
lithium-ion and other batteries. Also seeing the emergence and adoption of 
new battery technology with high added value.
Risks and opportunities associated with 
battery technology innovation and the 
emergence/adoption of new technology
Opportunities
Risks
Rapid growth in CO2 capture volume in various sectors, including fuel 
production, power generation, and industry.
Market growth driven by widespread 
adoption of CCU/CCS (CO2 capture, 
utilization, and storage)
Opportunities
Market
• In the short-term, vehicle emissions restrictions will be stricter, increasing
demand for improved fuel economy.
• In the medium- to long term, the proportion of electric vehicles (EVs) and
fuel cell vehicles (FCVs) in automobile sales will rise rapidly, and the
proportion of internal combustion engine vehicles will decline.
Changes in demand for automotive parts
Opportunities
Risks
The capacity of power storage batteries and demand for lithium-ion 
rechargeable batteries for EVs will rapidly expand.
Increased storage battery demand
Opportunities
Demand for semiconductors will increase with electrification in various fields 
such as industry and transportation.
Growth in demand for semiconductor-
related products
Opportunities
Reputation
• Regular and growing trend of investors and financial institutions factoring
climate change risk into investment decisions and requiring lenders to set
SBT*.
• Customers are increasingly demanding renewable energy adoption and
reductions in CO2 emissions.
Improving assessments by contributing to 
carbon neutrality
Opportunities
Decline in trust from stakeholders due to 
delays in responding to climate change
Risks
Gallium nitride (GaN) wafers product information
https://www.ngk-insulators.com/en/rd/gan-wafer/
LINK
Subnano-ceramic membranes product information
https://www.ngk-insulators.com/en/rd/subnano/

Foundation that Supports the NGK Group’s Sustainable Value Creation
56
NGK REPORT 2022
Details of Risks & Opportunities
Timeframe
Response Strategy
• Increasing impact of factors such as property damage 
to facilities and machinery caused by wind and flooding, 
profit losses due to the suspension of business, and 
difficulty in employees coming to work.
• Supply chain disruption due to increased wind and flood 
damage
Short- to 
long-term
• Flood risk assessments for major sites including future climate
• Create and promote BCP (Business Continuity Plan), including for supply chains
• Create a structure that enables global substitutions by decentralizing sites
• Prepare for supply chain disruption by evaluating alternative procurement methods 
in advance (focus on production areas with high disaster risks)
• Evaluate the flood risk assessments of major suppliers
• Increased storm surge risk, increased property damage 
and profit losses due to flood damage
• Costs incurred for measures such as height elevation 
and barriers and relocation
Medium- 
to 
long-term
LINK
Details of Risks & Opportunities
Timeframe
Response Strategy
Incurring response costs related to equipment 
replacement and upgrades for energy conservation, 
renewable energy procurement, electrification of energy 
sources, and energy conversion from natural gas as a 
furnace fuel to fuels sources such as hydrogen or 
ammonia.
Short- to 
long-term
• Trend and prediction monitoring for the regulations and carbon pricing systems of 
various countries
• Promote enhanced energy conservation, technological innovation, and initiatives 
towards expanding the use of renewable energy in line with the NGK Group 
Environmental Vision and Carbon Neutrality Strategic Roadmap
• Monitor supply status of fuels with low greenhouse gas emissions
• Promote greenhouse gas emissions reductions in accordance with NGK Group’s 
Supply-Chain CSR Guideline
• Expand Scope 3 calculations and range of disclosure, conduct life cycle 
assessments (LCA) for major products to identify reduction targets
Costs increase due to adoption of carbon pricing on 
company emissions and emissions along the upstream of 
our supply chain
• Increased competitiveness by advancing proprietary 
technology development
• Increased storage battery needs
Medium- 
to 
long-term
• Monitoring of trends in technology innovation
• R&D advancement
Competitiveness of our technologies will decline as 
competitors advance proprietary technology development
Growth in CCU/CCS market will increase business 
opportunities for our ceramic products (subnano-ceramic 
membranes, etc.)
Medium- 
to 
long-term
• Monitoring of technology innovation and market trends
• Business expansion in the CCU/CCS market, new product development promotion 
marketing, business schemes, promotion of New Value 1000 to accelerate new 
product development
• Research, development, and provision of subnano-ceramic membranes, solid 
oxide electrolysis cells (SOEC), and the establishment of carbon cycles to use 
them.
• In the short term, demand for catalyst substrates for 
controlling automotive emissions and NOx sensors will 
increase due to stricter exhaust gas regulations.
• In the medium- to long-term, demand for gallium nitride 
(GaN) wafers, DCB and AMB substrates, and beryllium 
copper alloy for EVs will increase.
Short- to 
long-term
• Monitoring of regulatory, market, and demand trends
• Plan and implement production and capital expenditures in response to the plans 
of automobile manufacturers
• Cover decline in demand for internal combustion engine vehicles due to tougher 
exhaust gas regulations by increasing the number of new products and high-
performance products
• Expand adoption of gallium nitride (GaN) wafers, beryllium copper alloy, and DCB 
and AMB substrates for EVs and plug-in hybrid vehicles (PHEVs)
• Develop and offer products for heat management in EVs, new products for 
synthetic fuels, etc.
Demand for products for internal combustion engine 
vehicles will decline over the medium- to long-term
• Increased demand for NAS batteries and Zinc 
Rechargeable Batteries
• Increased business opportunities in the heating and 
refractory business for lithium-ion rechargeable batteries
Short- to 
long-term
• Monitoring of power policies and customer trends in each country
• Enhance production systems in response to growing demand
• Provide new value through solutions services
• Commercialize Zinc Rechargeable Batteries
Increased demand for parts for semiconductor 
manufacturing equipment and electronic parts/metals in 
the electronics business
Short- to 
long-term
• Monitoring of demand trends
• Enhance production systems in response to growing demand
• Partner with semiconductor manufacturing equipment manufacturers, increase 
facility capacity, personnel, facility systems, etc. as necessary
Assessments by stakeholders can be improved by 
proactively responding to climate change and providing 
products and services that contribute to carbon neutrality.
Short- to 
long-term
• Business structure conversion, one of the goals outlined in the NGK Group Vision
• Promote measures to reduce greenhouse gas emissions
• Conduct information disclosure in line with the TCFD framework
• Ascertain customer demands and implement responses accordingly
Delays in climate change measures will have a negative 
impact on brand, capital procurement, transactions, etc.
Substrates with superior insulation and 
heat dissipation product information
https://www.ngk-insulators.com/en/product/ 
search-business/electron/
Zinc rechargeable batteries product information
https://www.ngk-insulators.com/en/rd/

57
NGK REPORT 2022
Social
We formulated the NGK Group Human Rights Policy in April 2021 to accelerate initiatives to ensure respect for human rights. 
This policy outlines our thinking and actions on human rights.
NGK Group Human Rights Policy
Human Rights
NGK Group Human Rights Policy
The NGK Group hereby establishes this “NGK Group Human Rights Policy” (this “Policy”) based on the “United Nations Guiding 
Principles on Business and Human Rights” and will promote initiatives to respect human rights to prevent violation or abuse of 
human rights of anyone impacted by the NGK Group’s business operations.
1. Basic Approach to Human Rights
The NGK Group supports and respects the “International Bill of Human Rights” adopted by the United Nations (consisting of the 
Universal Declaration of Human Rights and the International Covenants on Human Rights), the “ILO Declaration on Fundamental 
Principles and Rights at Work”, the “OECD Guidelines for Multinational Enterprises” and other international norms.
	 With NGK INSULATORS, LTD. (“NGK”) signed up to the United Nations Global Compact, the NGK Group supports and 
respects the Ten Principles of the United Nations Global Compact.
2. Applicable Laws and Regulations
The NGK Group will comply with laws and regulations (the “Legislation”) of each of the countries and regions where it operates. In 
case of any conflict between internationally accepted principles of human rights and the Legislation of any country or region, the 
NGK Group will seek ways to respect the internationally accepted principles of human rights to the utmost extent.
3. Scope of Application
This Policy applies to all directors, officers and employees of the NGK Group (the “Directors and Employees”). The NGK Group 
expects that its suppliers will also comply with this Policy.
4. Education and Training
The NGK Group will provide the Directors and Employees with appropriate education and training to effectively implement this 
Policy throughout its group-wide business operations.
5. Main Focus of the Group's Commitment to Human Rights
The NGK Group will:
– Comply with international norms on human rights and respect diversity of people;
– Respect human rights and undertake business activities without the use of forced labor or child labor; Provide young workers 
with fair working conditions that strictly comply with the Legislation of each country and region.
– Respect the individuality and independence of each employee and not engage in discrimination on the basis of race, citizenship, 
gender, age, religion, belief, existence of handicaps, sexual diversity or any other aspect; and
– Prevent the occurrence of harassment in the workplace and take prompt and appropriate action in the case where it occurs.
The NGK Group will:
– Strictly comply with the Legislation of each country and region relating to safety and sanitation, provide a safe and enjoyable 
work environment that is comfortable for everyone to work in for all;
– Strictly comply with the Legislation of each country and region relating to labor, safety and sanitation, we provide fair working 
conditions such as working hours, holidays, vacations, wages, and welfare programs.
– Respect employees’ right of freedom of association and of collective bargaining in accordance with the Legislation of each of 
countries and regions where it operates.
– Aim to harmonize work and life, and support a variety of working styles;
– Build up a relationship of trust through sincere debate and discussion with employees;
– Give educational opportunities to employees and provide opportunities to stretch their motivation and abilities; and
– Encourage free and open discussions and aim to create a corporate culture conducive to active communication.
Striving to earn the trust of stakeholders and  
create a sustainable society

Foundation that Supports the NGK Group’s Sustainable Value Creation
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NGK REPORT 2022
The HR Committee was established in April 2020. The 
executive in charge of the HR Department chairs this 
committee. It is the body that discusses corporate activities 
that enhance respect for human rights and personnel matters 
that should be addressed across the entire NGK Group. 
	
The committee works with related committees and 
departments on initiatives to ensure respect for human rights, 
depending on the content and importance of the initiative. 
The Board of Directors also monitors the status of 
implementation through regular reports on implementation of 
initiatives by the director in charge of the Human Resources 
Department.
Management System
 April 2021: Disclosed NGK Group Human Rights Policy
 August 2021: Revised the policy
 November 2021: Newly formulated and disclosed Statement on the UK Modern Slavery Act
 October 2021: Investigated grievances relating to human rights at domestic and overseas Group companies during the first half 
of FY2021 (Grievances relating to human rights at the NGK head office are investigated and recorded on a case by case basis)
 December 2021 to March 2022: Conducted a human rights due diligence survey of the NGK Head Office and domestic and 
overseas Group companies
1. Revision of the NGK Group Human Rights Policy
2. Formulation and disclosure of a new UK Modern Slavery Act Statement
3. Expansion of the scope of human rights due diligence to overseas Group companies
The NGK Group Prioritized Implementation of the Following Measures on  
Protecting Human Rights in FY2021.
6. Human Rights Due Diligence
The NGK Group will establish a system of human rights due diligence, and will implement processes to identify, prevent and 
mitigate adverse human rights impacts that the NGK Group's business operations may cause.
7.Remedy
If it is revealed or suspected that the NGK Group has caused adverse human rights impacts (whether directly through its business 
operations, or through its suppliers), the NGK Group will endeavor to deliver appropriate and effective remedy through good-faith 
dialogue with related parties.
8.Dialogues and Discussions
In the process of implementation of this Policy, the NGK Group will earnestly engage in dialogue and discussions with 
stakeholders, acquiring and drawing on independent external expertise on human rights.
9.Information Disclosure
NGK will disclose the status and results of implementation of this Policy on its website and integrated reports or through other 
channels.
10.Responsible Persons
NGK will designate the director in charge of the personnel division as the director responsible for the implementation of this Policy. 
The Board of Directors will oversee the status of implementation of this Policy by having the director regularly report the 
implementation status to the Board of Directors.
	 This Policy has been approved by NGK's Board of Directors and signed by NGK's Representative Director and President.
	
NGK Insulators, Ltd. 
	
President
LINK
NGK Group Human Rights Policy
https://www.ngk-insulators.com/en/sustainability/society-humanrights.html

59
NGK REPORT 2022
The NGK Group pursues a variety of efforts to identify, prevent, and mitigate practices within the NGK’s business operations that 
negatively impact human rights.
Due Diligence Process, Assessments, and Corrective Steps
System for Responding to Grievances and Correction/Redressal
Reporting, approval
Confirm and discuss
ESG Management 
Committee
HR Committee
Cases resolved at 
Group companies
Compliance Committee
Matters that must be handled 
by the Compliance Committee
Investigation and Redressal
All grievances relating to human rights
Grievances regarding 
human rights
• Harassment issues
• Discrimination issues
• Excessive work hours, days off
• Child labor, forced labor
• Minimum wage, unpaid wages
Confirm every 6 months
Discussion by Human Resources Department/
Group Compliance Department
Human Resources Department
Human rights due 
diligence
Helpline
Website
Switchboard 
phone
Consultations
Business Division
Purchasing Department
Legal Department
Group Compliance 
Department
Social
NGK and 39 domestic and overseas Group companies 
conducted a self-assessment consisting of 55 questions in 
the three categories of labor, safety and health, and ethics, 
based on the RBA* Code of Conduct.
	
The results confirmed that no incidents occurred in which 
the laws or regulations of any country were violated. 
However, multiple incidents that did not comply with the RBA 
Code of Conduct were identified, even though no legal 
violations occurred.
	
Improvements have already been implemented for the 
minor incidents among these (such as providing information 
on safety and health in a language that employees can 
understand). For incidents involving employment procedures, 
working hours, and other matters based on the laws and 
regulations, customs, and practices of each country, we have 
recognized the issues and will consider the response.
*Responsible Business Alliance: Focusing primarily on the electronic equipment 
industry, the RBA establishes standards and conducts audits with the aim of 
promoting safe working environments, worker protection, and environmental 
responsibility.
Self-assessments by Group Companies
Risks to employees’ human rights are reported through the 
whistleblowing system 24/7 and information is compiled. 
NGK receives reports from Group companies once every 6 
months through Human Rights Grievance Survey.
	
We also conduct a Corporate Risk Survey (CRS) once 
every two years to ascertain potential risks.
	
In FY2021, we confirmed that each of the several 
incidents of harassment was handled appropriately.
Risks to Employees’ Human Rights
Every year, we request our suppliers, including companies 
that are new to our supply chain, to sign an agreement to 
comply with NGK Group’s Supply-Chain CSR Guideline.  
In FY2021, we also had domestic suppliers complete a 
self-assessment survey to ascertain the degree of 
understanding and status of activities relating to CSR 
procurement.
	
The HR Committee reviewed the responses and reported 
them to the Board of Directors.
Risks to Human Rights in the Supply Chain
• Freedom of association and 
activity
• Occupational Safety and Health
• Policy on conflict minerals, etc.

Foundation that Supports the NGK Group’s Sustainable Value Creation
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NGK REPORT 2022
Enhancing Safety and Health Activities
Safety and Health
NGK views the enhancement of safety and health activities 
as one of its top priorities. In addition to rigorous operation of 
our occupational safety and health management system, we 
developed our second three-year action plan built around the 
key themes of risk management and enhanced governance. 
As key initiatives, we are promoting efforts to prevent and 
minimize incidents that could lead to serious injury or 
accidents, such as getting caught in rotating equipment, 
electric shock, and explosions.
Medium-Term Action Plan
Fiscal Year Implementation Items
Key Activities
Strengthen Risk 
Management
Reduce risk of serious injuries/
accidents in the workplace
We completed a reexamination of equipment/operations that present 
workers with potential for serious injury or accident, such as being caught 
in rotating machinery, electric shock or explosions, and we put into place 
operational safeguards (e.g., administrative measures) at all production 
sites to control these risks. We are also mostly finished with the 
implementation of Engineering or Technical measures (e.g., equipment 
update or remodeling), except at some overseas sites.
Strengthen Group 
Governance
Entrench Group company governance 
mechanisms
In addition to safety and health-related auditing of Group companies by the 
dedicated department of the Head Office, Group company governance 
was strengthened through internal audits of Group companies by Business 
Group specialized teams responsible for overseeing them.
Acquire international certification for 
safety and health management system
ISO 45001 certification has been obtained for all production sites of Group 
companies in Japan and overseas.
Results of FY2021 Activities
The policy of the NGK Group is to provide stable and equal 
employment opportunities to people possessing a diverse 
range of attributes, regardless of race, nationality, gender, 
age, religion, creed, disability, and sexual diversity. We 
promote even greater efforts to achieve diversity through 
educational activities to support work-life balance, employ 
people with disabilities, and advance understanding of 
diversity. In addition to this, we also maintain an environment 
that enables diverse human resources to enjoy a wide range 
of workstyles by utilizing telecommuting, providing other 
flexible workstyles, and offering a wide range of career paths 
that each employee can pursue individually, according to 
personal inclination, suitability, and type of work.
Promoting Diversity
Ninety-eight percent of the roughly 13,000 employees in the 
NGK Group who work overseas are hired locally. We believe 
that it is our corporate responsibility to contribute to the 
development and vitalization of the local economies and 
communities where we operate our business in each country 
and region, and actively hire locally at each location.
Views on Hiring Locally
We asked Emiko Hamada, an outside director of NGK, to 
give a lecture on the theme of encouraging men in NGK to 
take childcare leave.
	
Director Hamada talked about how it benefits the 
company when men participate in childcare and take leave. 
She stressed the need to communicate clearly and foster a 
culture that encourages this, and to instill the awareness that 
it promotes the growth of the individual.
Holding Lectures to Promote Diversity
Diversity
Outside Director  
Emiko Hamada
LINK
For more information on promoting diversity
https://www.ngk-insulators.com/en/
sustainability/society-diversity.html

61
NGK REPORT 2022
Quality Policy
The NGK quality activity system consists of a group-wide 
structure headed by the chairman of the Quality Committee 
and an activity system within each business group headed by 
the group executive.  For group-wide activities, we have 
established a quality committee that serves as a deliberating 
body to assists the chairman of the Quality Committee. As an 
activity system within each business group, we also built 
quality system suitable for each business division and have 
acquired ISO9001 or IATF16949 certification. Through this 
system, we promote activities such as quality assurance, 
quality control, quality improvement, and quality education.
	
Each business group has a point of contact with 
customers, and strives to further improve customer 
satisfaction by reflecting field failure improvement and 
customer requests into products and services.
	
In FY2021, we began quality management education for 
sales and technical staff, who serve as the points of contact 
with customers, and convey the importance of quality of 
operation that fulfills customer contracts. We also actively 
communicate with our partners to provide not only quality 
improvement guidance, but also to actively identify potential 
problems.
Quality Activity System
Quality
The NGK Group considers the provision of products and 
services that contribute to a better social environment to be 
one of our most important missions. We strive to maintain a 
customer’s perspective and create quality that is trusted by 
society.
	
Under the quality policy based on the NGK Group Code 
of Conduct, we set quality goals every year and work to 
create quality from the customer’s perspective.
Quality policy
NGK is dedicated to quality and committed to 
providing valuable products and services that are 
trusted by our customers and respected by society.
Quality Objectives FY2022
A focus on Organizational Self Discipline is required 
to improve our “Quality of Operation”.
Customers
Company-wide activities
Business group activities
Society
Social
responsibility
Quality Activities
Quality compliance program
Corporate value
Products/services
Customer
satisfaction
Quality Committee
Quality Activities Meeting
Quality improvement
activities
Quality Assurance
Department
Design and
development division
Production
engineering Division
Group companies
Manufacturing
division
Clerical/
sales divisions
Procurement
divisions
Quality control
activities
Quality assurance
activities
Work quality improvement
activities
QuiC Steering Meeting
Suggestion Review Committee
Quality Review meeting
Quality policy/Quality review
Quality Compliance Program review
Quality activity follow-up
Quality status conﬁrmation
Technical evaluations for 
serious quality problems
Quality Compliance Program follow-up
Improvement
activities
Quality Activity System
Social

Foundation that Supports the NGK Group’s Sustainable Value Creation
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NGK REPORT 2022
NGK started promoting Quality Risk Elimination-Process 
(QRE-P) activities throughout the Group from 2017. QRE-P 
activities serve to further promote providing high-quality 
products that satisfy our customers. QRE-P activities 
identifies points to note in product realization in order to 
eliminate risk while improving quality.
	
In activities thus far, we have been working on 
enlightenment for QRE-P activities providing training to 
business group staff to help them understand the content of 
QRE-P and also providing practical support in actual case 
using quality tools such as QFD and FMEA which are applied 
the QRE-P concept.
	
Since FY2021, we have incorporated the concepts of 
QRE-P by focusing on any weaknesses found in quality 
management systems or product realization concepts in 
terms of eliminating quality risks. In this activity we regard a 
field failure as the critical weakness. In addition to its 
technical countermeasure, we also work with the business 
group staff to analyze what was lacking in our work 
progression methods and then we apply the results of that 
analysis towards the system improvements. We believe this 
activity leads to the prevention of the field failure.
	
In the future, we plan to extend this activity to Group 
companies as well.
Product Quality Risk Elimination Activities
In 2018, the NGK Group discovered a case of non-
conformity in testing procedure. Since then, we have been 
promoting activities that focus on improving “quality of 
operation” while embracing the fundamental principle that 
“Social trust is our foundation.”
	
We are making a unified effort to incorporate activities 
aimed at improving “quality of operation” into existing 
company-wide quality activities. In addition to expanding 
education designed to promote awareness of the importance 
of noticing and pointing out problems to section managers 
and supervisors, each business group managers are also 
sending messages encouraging employees to point out 
anything that they think is strange. Aiming to ensure that all 
of our employees autonomously improve “quality of 
operation”, we are engaging in unique activities such as 
gathering opinions from the workplace, holding study 
sessions, and conducting patrols to develop a division-level 
activity system.
Activities to Improve “Quality of Operation”
“QuiC (Quality up innovation Challenge) activities” are small 
group activities and individual improvement and proposal 
activities conducted since 2003 that are designed to improve 
the quality of products and work. We hold a group contest 
every year at our head office, where part of the activities 
includes sharing excellent improvement examples throughout 
entire group. In FY2021, we held a contest in August consisting 
of both an in-person venue and online participation as a 
countermeasure against COVID-19. To help motivate 
employees and revitalize the workplace, from FY2020 we also 
started “NGK-BOX/Surprising Challenges!” These 
presentations provide opportunities to share various innovations 
and best practices that can be adopted on a company-wide 
level. The event for FY2021 was held in November.
“QuiC Activities”: Quality Improvement Activities Featuring Full Employee Participation
To realize the NGK Group Vision, in addition to selling 
products, we are also working on selling services. This entails 
aiming to further improve customer satisfaction by providing 
product-related services, systems, and solutions. In new 
business fields, we believe it is necessary to develop this 
quality of providing services in addition to quality of products.
	
Thus far, quality activities have centered on the quality of 
products. However, moving forward, we will incorporate the 
elements necessary to achieve quality assurance for 
providing services  into activities designed to eliminate 
product quality risks and the activities to improve quality of 
operation. We will continue to innovate and take on 
challenges in our activities.
Expanding Quality Assurance to Service Provision
Company-wide contest to announce excellent quality improvement 
activities

63
NGK REPORT 2022
Our basic policy centers on the three principles of open and 
fair, partnership, and relationship with society. In line with this, 
the NGK Group has established a Basic Purchasing Policy to 
promote fair and honest business transactions and help 
ensure prosperous relationships with the procurement 
partners in our supply chain. In 2021 we submitted a 
Declaration of Partnership Building as advanced by the 
Cabinet Office Small and Medium Enterprise Agency. We 
continue to promote partnership with our suppliers as well as 
fair and honest dealing.
Basic Purchasing Policy
At NGK, the Purchasing Department is responsible for 
managing tier 1 suppliers. It also manages tier 2 and beyond 
suppliers that provide critical items such as raw materials.  
All supplier management is done in line with NGK’s Supplier 
Management Regulations.
Supply Chain Management System
Supply Chain Management
The NGK Group promotes CSR procurement as a response 
to rising social expectations for CSR-oriented supply chain 
management. We preferentially select CSR-conscious 
companies and purchase CSR-sensitive raw-materials and 
services.
Promoting CSR Procurement
The NGK Group created NGK Group’s Supply-Chain CSR 
Guideline in FY2010 as a guide to promote CSR 
procurement across the Group. 
	
The Guidelines specifically describe our obligations as a 
socially responsible buyer, such as environmental 
obligations relating to greenhouse gas emissions 
reductions, as well as clearly specify our expectations of all 
socially responsible suppliers.
	
In 2013, the Guidelines were integrated with the Green 
Procurement Guidelines for preferential purchase of 
environmentally friendly products and services. Since then, we 
have revised the Guidelines (and added compliance items) to 
adjust to changing social conditions and new global issues.
	
Every year we ask suppliers to sign an agreement to 
comply with the Guidelines and ask new suppliers to sign the 
same agreement when beginning new business transactions. 
NGK Group’s Supply-Chain CSR Guideline is posted on our 
corporate website in Japanese, English, and Chinese.
NGK Group’s Supply-Chain CSR Guideline
Basic 
Purchasing 
Policy
Openness and 
Fairness
∙ Open, fair, and honest 
procurement
∙ Pursuit of competition 
principles and profitability
Partnership
∙ Mutual prosperity 
based on mutual trust 
with suppliers
Relationship 
with Society
∙ Compliance with laws
∙ Preservation of the 
global environment
NGK Group’s 
Supply-Chain CSR 
Guideline adoption 
rate for suppliers
99.6%
Social
LINK
NGK Group’s Supply-Chain CSR Guideline and  
supplementary material
https://www.ngk-insulators.com/en/
sustainability/society-scm.html

Foundation that Supports the NGK Group’s Sustainable Value Creation
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NGK REPORT 2022
Within NGK, raw materials and molding molds for main 
production items*1 are considered critical items, and of the 
suppliers who supply these items to NGK, 38 companies  
(22 Tier 1 companies, 16 Tier 2 companies) are considered 
critical suppliers from the standpoint of transaction volume 
(accounting for 80% or more of raw materials and molds 
supply for main production items), and BCP (single company 
supply ratio of 70% or more).
	
In order to identify sustainability-related risks in the supply 
chain, which includes these suppliers, we perform partner 
maintenance and selection based on NGK Group’s 
Supply-Chain CSR Guideline, as well as visit suppliers to 
identify who are our high-risk procurement partners.
*1 Main production items: Ceramics for purifying automobile exhaust, insulators and 
related devices for electric power, ceramics for electronic and electrical devices and 
ceramics for semiconductor manufacturing equipment
Supply Chain Evaluation
At the NGK Group, we engage in activities which deepen 
understanding to promote CSR procurement, such as visiting 
individual suppliers and conducting on-site inspections.
	
Not only do we ask suppliers to sign an agreement to 
comply with our existing NGK Group’s Supply-Chain CSR 
Guideline, but in 2021 we conducted a fact-finding survey to 
perform a detailed CSR assessment. It contained 114 
questions on nine topics, including human rights, labor, and 
the environment. In FY2022 we are providing improvement 
support to suppliers according to their importance and 
business conditions. Our group companies are also moving 
forward incrementally with a Self Assessment Questionnaire 
(SAQ) for all major suppliers both in and outside of Japan.
The NGK Group conducts procurement activities that 
consider impacts on regional communities stemming from 
the use of raw materials (e.g. conflict minerals*) with the 
potential to cause social issues such as human rights 
violations and poverty, and takes steps to avoid using  
such materials. 
*Minerals including tin, tantalum, tungsten, and gold produced in the Democratic 
Republic of the Congo and surrounding countries, and used as a source of funding 
for armed conflict in the area. Additionally, in response to requests from customers, 
we investigate suppliers regarding their responsible procurement of resources and raw 
materials.
Expanding CSR Procurement
Procuring Resources and Raw Materials Responsibly
Ongoing Promotion of CSR Procurement
Conduct ongoing communication activities with procurement partners
Create NGK Group’s Supply-Chain 
CSR Guideline
Integrate the  
Green Procurement Guidelines
Conduct detailed  
CSR assessment survey
Ascertain actual state of  
supplier CSR framework and activities
Request that suppliers agree to comply 
with new NGK Group’s Supply-Chain 
CSR Guideline, obtain and confirm 
written agreements
Conduct supplier status surveys using 
CSR self-checklists
2010	
2011	
2012	
2013	
2014	
2015 to 2019	
2020 to 2022
Hold earnings presentations
Conduct one-on-one meetings 
in Japan and overseas
Operate Supplier Helpline
Penetration (Understanding) — 
Status surveys
Status surveys —  
Understanding
Compliance (agreement) —
Expansion
Maintain and continuation — 
Improve quality
LINK
Supplier helpline
https://www.ngk-insulators.com/en/sustainability/society-scm.html

65
NGK REPORT 2022
Human Resource Development
NGK undertakes systematic human resource development, 
including Group companies in Japan, which encompasses 
every job category from employment to 
every promotion milestone in their career.
	
The education and training that we 
provide employees across the NGK Group, 
in conjunction with their departments and 
with the aim of putting the Group Philosophy 
into practice, is divided into three areas: 
“Human Skills” needed to tenaciously pursue 
results through teamwork, “Professional 
Competence” needed to cultivate a 
distinctive skill set and a proactive approach 
to problems, and “Compliance Requirements 
in Job Performance” needed to recognize 
and act upon responsibilities as a member of society.
*Since FY2020 we have continued to curtail some training programs to reduce the risk 
of COVID-19 infection.
Skills Development for Employees
Quality of People
Embrace challenges  
and teamwork
Quality of Product
Exceed expectations 
Quality of Management
Social trust is  
our foundation
NGK Group Philosophy
Our Values
Human Skills
Tenaciously pursue results 
through teamwork
Professional 
Competence
Cultivate a distinctive skill 
set and a proactive 
approach to problems
Compliance 
Requirements in Job 
Performance
Recognize and act upon 
responsibilities as a 
member of society
Social
Based on the NGK Group Digital Vision, we will educate all 
employees, from management to general employees, in 
digital transformation (DX), and will develop human resources 
who are skilled in the use of data and human resources to 
bridge the gap to DX. We provide training by grade level, 
according to experience and the role served. In the business 
units, training is segmented into levels such as “Leaders” to 
drive the pursuit of DX, “Supporters” who assist the leaders, 
and “Beginners” who learn how to view and process data.
Developing Digitally Proficient Human Resources
(Examples of Development Measures)
 In the “Leaders” development program, employees leave the division they are affiliated with and participate in an internal 
internship in a specialist division for one year to concentrate on learning data analysis and digital technology.
 New employees learn IT (information technology) skills through e-learning during the first year after they join the 
company.
We have positioned “Embrace challenges and teamwork” as 
the top value in Our Values and “Enriching human life by 
adding new value to society” as our Mission in the NGK 
Group Philosophy. In addition to providing educational 
programs, we also work with superiors and create a 
Basic View
workplace environment that enables employees to take the 
initiative in their own growth. The goal of this is to enable 
employees to contribute to the business in the environment 
in which they work.
LINK
For more information on human resource development
https://www.ngk-insulators.com/en/sustainability/society-skills.html
For reference: NGK Group Digital Vision 
 page 26
LINK
For more information on the NGK Group Digital Vision
https://www.ngk-insulators.com/en/info/d-vision/

Foundation that Supports the NGK Group’s Sustainable Value Creation
66
NGK REPORT 2022
People development
FM Industries (FMI) was founded in the San Francisco Bay Area in 1989 and 
joined the NGK Group in 2002. FMI has become a leading supplier to the 
Semiconductor Equipment industry with eight manufacturing sites in the 
Western United States and over 1,200 team members. Our team plays a 
critical role in realizing NGK Group’s 2050 Vision. In a very challenging 
employment market, FMI strives to maintain a competitive advantage by 
investing in long term employee-focused initiatives to maintain and reward 
our team members. Simultaneously, we focus on the recruitment, training, 
and development of the next generation of leaders.  A new team member is 
introduced to our company through an extensive On Boarding process that 
covers important aspects of Health & Safety, Quality, Employee Benefits, 
and team building. We ensure all staff at every level receive a complete 
introduction to our business and industry. Once on board all FMI Team 
Members have access to significant Training & Development resources. 
FMI’s custom Learning Center provides opportunities for everyone to 
improve their technical skills and enhance their management abilities. 
Training content is provided through a comprehensive internet-based 
platform where team members can access and complete training at their 
pace and on their schedule. In addition, we provide an Apprenticeship 
Program, a Leadership Development Program, and technical skills training 
all designed and executed by our in-house training team. Other important 
elements of our human resource program are communication and team 
member feedback. FMI utilizes a company intranet and a quarterly 
newsletter titled “FMI Connections” to keep our members apprised of the 
latest news and developments. We also seek our members’ feedback 
through our quarterly opinion survey, quickly identifying opportunities for 
engagement and improvement.
	
By maintaining a positive work culture, where we provide career 
opportunities, celebrate success, and show appreciation to our team, we 
differentiate ourselves from our competition. We fully understand the 
success of our team is vital to achieving NGK Group’s 2050 Vision. 
FMI’s ongoing efforts to achieve NGK Group’s Vision 2050
To support the “NGK Group Vision: Road to 2050”, launched in April 2021, 
FMI has developed its own 2050 Roadmap. Our roadmap focuses on digital 
transformation (DX), one of the “Five Transformations” of NGK Group’s 2050 
Vision. In developing our DX Roadmap, FMI created a cross functional 
leadership team consisting of subject matter experts in their field. Our 
mission is to utilize technology to further enable our Team Members’ 
creativity and effectiveness. As an example, many valuable labor hours are 
committed to data generation, capture, and review. We plan to automate 
many of these processes and deliver real time trends to the production floor 
enhancing our team members’ real time decision making and creativity. We 
envision reducing mundane manufacturing tasks and allowing our team to 
allocate more time on high value processes. In addition, FM Industries 
Technology Roadmap includes materials research and development, 
application of metal bonding technologies, and further automation of our 
critical manufacturing processes. These activities are targeted to drive 
efficiency, add market share gains, and ultimately contribute to increased 
profitability.
Our rewarding team culture differentiates us from 
the competition and is vital for  
NGK Group’s 2050 Vision success
David Miller
Vice President
President, FM INDUSTRIES, INC.
FM Industries was founded in 1989 
by two experienced Silicon Valley 
entrepreneurs with a mission to 
deliver manufacturing solutions to 
their customers’ complex challenges. 
FMI joined the NGK Group in 2002 
and subsequently acquired LJ 
Engineering in 2010 and Praxair’s’ 
Advanced Components Group in 
2012. Both acquisitions provided 
customer and product diversity, with 
the latter adding Atmospheric 
Thermal Spray technology to our 
service portfolio. Over the last 
decade, FMI has leveraged this 
platform to become a premier 
supplier of critical components to the 
Semiconductor Equipment industry, 
with eight manufacturing sites across 
Northern California and Arizona and 
over 1,200 team members.
Profile of FMI
Voice

67
NGK REPORT 2022
Governance
Views on Corporate Governance
Corporate Governance
We have established the following system to ensure legality in 
business activities and transparency in management. This 
system makes it possible to respond swiftly to changes in the 
business environment and maintains a shareholder-focused 
system to ensure fair management.
NGK’s basic policy on corporate governance is to ensure legality 
in business activities and transparency in management. The 
Company has established a structure that can respond swiftly to 
changes in the business environment and built and maintains 
shareholder-focused system to ensure fair management.
	
To put this policy into practice, NGK has chosen the 
governance structure of a company with an Audit & Supervisory 
Board. We have established a corporate governance system that 
increases the effectiveness of corporate governance through 
debate and deliberation on important matters. This was 
accomplished by establishing the Executive Committee and 
various other committees to support the president in making 
decisions, in addition to the General Meeting of Shareholders, 
Board of Directors, and Audit & Supervisory Board.
	
NGK recognizes the need for swift, optimal decision-making 
and execution to respond to changes in the business 
environment. We have therefore introduced a executive officer 
system to segregate the management decision-making and 
supervisory function from the business execution function to 
clearly define the roles of and strengthen each function.
	
To strengthen the supervisory and oversight function of the 
Board of Directors, we have mandated reporting to Board of 
Directors from the key committees among committees that 
handle various risks surrounding NGK. To ensure that the 
objectives of the Corporate Governance Code are thoroughly 
implemented, we established the Nomination and Compensation 
Advisory Committee, Corporate Council, Conference of Outside 
Directors and Outside Audit & Supervisory Board Members, the 
Business Ethics Committee, and other committees.
	
In addition, we have established the NGK Group Code of 
Conduct to stipulate how everyone working for the NGK Group 
should execute their jobs so that they abide by society’s laws 
and the company’s Articles of Incorporation and comply with 
corporate ethics. All executives and employees are well versed in 
the code and are obligated to abide by it. In January 2019, the 
NGK Group Code of Conduct was revised with an emphasis on 
the realization of a sustainable society through business 
activities, respect for human rights, and thorough compliance to 
reflect changes in society since the previous revision.
Corporate Governance System
Constituent members: 9
Number of meetings in FY2021: 13
One-third of directors are outside directors. The Board of Directors 
makes decisions on matters specified in the Companies Act and 
the NGK’s Articles of Incorporation as well as other important 
matters concerning management, and supervises the job 
performance of directors. Taku Oshima, the chairman of NGK, 
serves as the chairman of the Board of Directors.
Constituent members: 5
Number of meetings in FY2021: 4
The committee consists of a majority of independent directors 
and a committee chairperson who is selected from among the 
independent directors. One outside Audit & Supervisory Board 
member attends committee meetings as an observer to confirm 
the appropriateness of the deliberation process. The committee 
deliberates personnel matters concerning directors and Audit & 
Supervisory Board members, matters concerning compensation 
of directors and executive officers, proposals for the total 
compensation limit for all Audit & Supervisory Board members, 
and chief executive succession plans, and reports the results to 
the Board of Directors.
Constituent members: 4
Number of meetings in FY2021: 14
The Audit & Supervisory Board consists of Audit & Supervisory 
Board members. The board supervises the decision-making 
process and job performance of directors by attending Board of 
Directors meetings and other means. It reviews the 
establishment and operation of the internal control system and 
confirms the appropriateness of the audit methods and results of 
the accounting auditor.
A  Board of Directors
C  Nomination and  
Compensation Advisory Committee
B  Audit & Supervisory Board
Striving to increase management transparency and 
effectiveness and enhance corporate value over the medium 
and long term

Foundation that Supports the NGK Group’s Sustainable Value Creation
68
NGK REPORT 2022
Audit & Supervisory Board
Business execution functions
Internal Board Members: 2
Outside Board Members: 2
Board of Directors
Nomination and
Compensation Advisory
Committee
Business Ethics Committee
Decision-making, supervise, appointment/dismissal, 
business execution, audit, etc.
Report, proposal, presentation of agenda, ﬁndings, 
deliberation, recommendation, etc.
Whistle-blowing, consultation, etc.
Internal Directors: 6
Outside Directors: 3
Outside Lawyers
(Independent Ofﬁcers: 3)
Internal Directors: 2
Outside Directors: 3
(Independent Ofﬁcers: 3)
Internal Director: 1
Outside Directors: 5
(Independent Ofﬁcers: 5)
(Independent Ofﬁcers: 2)
General Meeting of Shareholders
Accounting Auditors
President
Auditing
Department
Strategy
Committee
ESG Management Committee
Head Ofﬁce, Group Companies in and outside Japan
Executive Committee
Business execution divisions
NGK Group executives and employees
A
C
D
B
E
F
G
H
Internal Controls Committee
Compliance Committee
Environment, Safety and
Health Committee
Outside lawyers/
internal contact point
Helpline
Hotline
Development and
Commercialization Committee
Capital investments Committee
HR Committee
Quality Committee
Hearing convened by Audit & Supervisory
Board Members and Outside Directors
Corporate Council
Opinion exchange, Information collection
Conference of Outside Directors and
Outside Audit & Supervisory 
Board Members
Constituent members: 6
Number of meetings in FY2021: 5
The committee consists of outside officers and the internal 
director in charge of compliance. Its members monitor for fraud 
or illegalities involving officers and others of NGK, as well as 
compliance with competition laws and the Foreign Corrupt 
Practices Act.
Constituent members: 11
Number of meetings in FY2021: 2
The committee consists of outside officers and internal directors. 
Outside officers provide advice to members of management 
about various issues concerning business management.
Constituent members: 16
Number of meetings in FY2021: 18
This committee consists of the president, executive vice 
presidents, executives of business groups, the group executive 
for Corporate NV Creation, the group executive of Corporate 
R&D, the group executive of Corporate Manufacturing 
Engineering, executive officers in charge of each division, senior 
fellows, and full-time Audit & Supervisory Board members, as 
well as executive officers, committee chairs, general managers, 
and division heads designated by the president. The committee 
deliberates on necessary matters to assist the president in 
making decisions. Shigeru Kobayashi, the president of NGK, 
serves as the committee chair.
D  Business Ethics Committee
E  Corporate Council
H  Executive Committee
Constituent members: 5
Number of meetings in FY2021: 2
The conference consists of outside officers (outside directors and 
outside Audit & Supervisory Board members). Members 
exchange opinions on management issues and other matters 
concerning NGK so they can actively contribute to discussions in 
Board of Directors meetings.
Constituent members: 7
Number of meetings in FY2021: 14
The Hearing consists of Audit & Supervisory Board members and 
outside directors. Members gather information on the company’s 
business environment and issues from the relevant people in the 
NGK.
F  Conference of Outside Directors and  
Outside Audit & Supervisory Board Members
G  Hearing convened by Audit & Supervisory Board 
Members and Outside Directors

69
NGK REPORT 2022
We continue to strengthen the corporate governance system. Enhancements include introducing an executive officer system to improve 
the management supervision and monitoring functions and other functions, and to provide suggestions on all aspects of management.
Steps Taken to Strengthen Corporate Governance
 Budgeting and account settlement
 Dissolution and liquidation of Group companies, investment in joint ventures  
(establishment of new regional power companies)
 Capital investment in production facilities and equipment
 Formulation of the NGK Group Vision
 Formulation of the NGK Group Environmental Vision and the fifth 5-Year Environmental Action Plan
 Revision of the NGK Group Human Rights Policy
 Revision of policies on determining compensation of directors and other senior management
 Formulation of the Basic Policy on the Business Portfolio
 Progress reports on company-wide projects (Carbon Neutrality project , etc.)
 Reports on committee activities and intellectual property activities
April 1999
Established the NGK Code of Conduct
April 2003
Revised guidelines into the NGK Group Code of 
Conduct
June 2005
Introduced an executive officer system
Introduced a stock option
Introduced an outside  officer system
July 2005
Established the CSR Committee
April 2007
Established the CSR Office
June 2010
Appointed independent directors
July 2011
Revised the NGK Group Code of Conduct
April 2015
Signed on to the UN Global Compact
June 2015
Established the Global Compliance Office
December 
2015
Established the Nomination and Compensation 
Advisory Committee, Corporate Council, 
Conference of Outside Directors and Outside Audit 
& Supervisory Board Members, and Business 
Ethics Committee
June 2017
Appointed one additional outside director
October 2018
Appointed a Chief Compliance Officer
The Board of Directors focuses primarily on deliberating and 
deciding matters (such as company-wide unified budgeting; 
strategic planning including dissolution, mergers, and alliances of 
the company; appointing and removing representative directors; 
approval of financial statements, business reports, etc.; the 
disposal and acceptance of transfer of important assets; and the 
appointment and dismissal of an important employees, etc.) 
prescribed under the Companies Act, NGK’s articles of 
incorporation, and the governing rules of the Board of Directors. 
The Board also monitors the job performance of all company 
directors.
Key Focuses of the Board of Directors
Key Focuses in FY2021
Governance
January 2019
Revised the NGK Group Code of Conduct
April 2019
Established the ESG Committee
February 2020
Endorsement of recommendations of the Task 
Force on Climate-related Financial Disclosures 
(TCFD)
April 2020
Established the Compliance Committee
Established the HR Committee
April 2021
Formulated the NGK Group Vision
Formulated the NGK Group Human Rights Policy
Established the NGK Group Basic Guidelines for 
Compliance Activities
Established the ESG Management Department
June 2021
Outside directors increased to 1/3rd of Board of 
Directors
An outside director made the chair of the 
Nomination and Compensation Advisory 
Committee
April 2022
Established the ESG Management Committee
June 2022
Introduced a Restricted Share Compensation Plan
LINK
Corporate Governance Report
https://www.ngk-insulators.com/en/resource/pdf/sustainability/governance_en.pdf

Foundation that Supports the NGK Group’s Sustainable Value Creation
70
NGK REPORT 2022
NGK’s Board of Directors conducts a survey of directors and 
Audit & Supervisory Board members at the close of each fiscal 
year to evaluate the effectiveness of Board of Directors meetings. 
The Board entrusts analysis and evaluation of the responses to 
an external organization, which reports the results to the Board 
of Directors. The Company continually strives to improve 
effectiveness through such means as considering the importance 
and necessity of each issue identified and reinforcing efforts in 
Board of Directors meetings during the next fiscal year.
Evaluation on the Effectiveness of the Board of Directors
A survey conducted to evaluate Board of Directors meetings in 
FY2021 (ended March 31, 2022) in early April of this year was 
comprised of 50 questions and free-response entry. The results 
were reported at the Board of Directors meeting held on June 9, 
2022. The initiatives and improvements listed on the right are 
being implemented for items recognized as issues. The overall 
evaluation from the external organization revealed the need for 
ongoing discussion on further improvements in effectiveness and 
directed at realizing the Group Vision.
	
We will endeavor to ensure and enhance effectiveness of the 
Board of Directors through ongoing efforts based on the 
evaluation results.
• Discussed important medium to long-term and strategic 
themes in expanded strategy committee meetings attended by 
outside officers in addition to the main business executives in 
charge, and freely debated and reported on such themes in 
Board of Directors meetings.
• Reported the status of allocation, treatment, and development 
of top management candidates and shared information in 
Corporate Council meetings attended by outside officers. Also 
partially revised the succession plans for the chief executive 
and approved the plans in a Board of Directors meeting.
Summary of the Evaluation of Effectiveness in FY2021
• The NGK Board of Directors has maintained the elements that 
form the foundation necessary as a Board of Directors since 
the previous evaluation, including the commitment and 
leadership of each member and a healthy culture. Evaluation of 
corporate strategy and policy decisions, risk management, and 
the composition of the Board of Directors has also improved. 
We can see the positive impacts of the structural change to 
one-third outside directors and discussion on formulating the 
vision. As can be seen from the increase in the overall score, 
we think the Board of Directors continues to be effective due to 
the specification of problems and concrete steps the Board of 
Directors has taken to achieve improvement.
• Opinions in the free-comment section were divided on whether 
or not the recent reforms increased the effectiveness of the 
Board of Directors. A certain number of comments demanded 
concrete efforts to further improve actual effectiveness, rather 
than in form only. In particular, some think the Board needs to 
devise ways to separate execution from supervision, clearly 
distinguish between reporting items and discussion items 
according to this separation of functions, and reduce the 
number of items elevated to the Board of Directors, among 
other improvements.
• Although the overall evaluation of discussion on formulating the 
vision was high, some desired continued discussion on 
strengthening the PDCA cycle, better follow-up, supervision of 
the business portfolio, effective use of assets, and other topics.
• Some think there is a need to share and perform the checks to 
the level expected in regard to the Nomination and 
Compensation Advisory Committee, succession plans, and 
evaluations of executive management.
Overall Comments by the External Organization
Effectiveness of the  
Board of Directors
Group 
Vision
More in-depth discussion
Supervision of the business portfolio
Separation of supervision and 
execution, sorting out roles
Checking on progress,  
establishing a PDCA cycle
Approach, measures
Opinions, issues
Clearly distinguish the issues to elevate
Organize and enhance the contents of 
various committee reports
(Clarify the alignment with the Group Vision)
Items to consider
· Add agenda items on risk management
· Continue free debate and follow-up on the 
business portfolio
· Add agenda items for free debate
Initiatives Targeting Further Improvements in Effectiveness

71
NGK REPORT 2022
Board of Directors (as of June 30, 2022)
Name, position, and age
Years in 
office/No. of 
NGK shares 
held
Reasons for appointment
Board of 
Directors 
meeting 
attendance 
record
Taku Oshima
Chairman
65
8
10,000 
shares
Mr. Oshima has experience in development, design, and manufacture of 
NAS battery system for electric power storage, and experience in entering 
markets. He was appointed Representative Director and President in 2014, 
Representative Director and Chairman in 2021, and possesses extensive 
operating experience in NGK and knowledge of all aspects of management.
12/13
Shigeru Kobayashi
President
61
2
10,126 
shares
After working in overseas sales, Mr. Kobayashi served as President of an 
overseas subsidiary, Group Executive of the Energy Infrastructure Business, 
and in various other positions. He was appointed Representative Director 
and President in 2021, has extensive operating experience in NGK as well 
as knowledge of and personal contacts for business operations.
12/13
Chiaki Niwa
Executive Vice President
62
7
10,000 
shares
Mr. Niwa has served as Representative Director and Executive Vice 
President since 2020 and is currently responsible for all technology in the 
Group. He possesses extensive operating experience in NGK and 
knowledge of project management and manufacturing technology.
13/13
Ryohei Iwasaki
Executive Vice President
62
13
10,000 
shares
Mr. Iwasaki has served as President of an overseas subsidiary, General 
Manager of the Corporate Planning Office, and Group Executive of the 
Electronics Business. He currently leads new product creation and 
commercialization as Group Executive of the Corporate NV Creation. He 
has extensive operating experience and knowledge of business operation in 
NGK.
13/13
Tadaaki Yamada
Director and 
Senior Vice President
61
Newly 
appointed
5,000 
shares
Mr. Yamada has served as General Manager of the General Affairs Dept. 
and the Human Resources Dept., among other roles. He is currently 
responsible for the Auditing Dept., Human Resources Dept., Group 
Compliance Dept., Legal Dept., Intellectual Property Dept., General Affairs 
Dept. in Head Office, and possesses extensive operating experience in and 
knowledge of NGK. 
—
Hideaki Shindo
Director and 
Senior Vice President
57
1
5,000 
shares
Mr. Shindo has served as General Manager of the Corporate Planning 
Office and General Manager of the Finance & Accounting Dept., among 
other roles. He is currently in charge of the ESG Management Dept., 
Corporate Planning Office, Secretarial Office, Finance and Accounting 
Dept., Purchasing Dept. in Head Office, and possesses extensive operating 
experience and knowledge in NGK.
10/10
Hiroyuki Kamano
Outside Director
76
11
1,000 
shares
Mr. Kamano possesses considerable expertise as an attorney, extensive 
experience and an established record in the legal world, and possesses 
broad, international knowledge. He provides recommendations on the 
compliance system and operational execution and supervises management 
appropriately.
13/13
Emiko Hamada
Outside Director
63
5
5,000 
shares
Ms. Hamada utilizes the insights she has developed, through R&D and 
product development in operating companies and research activities mainly 
in joint research by industry, academia, and government, to provide 
appropriate recommendations on operational execution and supervision of 
management at NGK.
13/13
Kazuo Furukawa
Outside Director
75
3
5,000 
shares
Mr. Furukawa possesses experience in telecommunications and other 
technical areas as well as in managing the operation of large organizations. 
He utilizes this experience to provide appropriate recommendations on 
operational execution and in supervision of management at NGK.
13/13
Independent Officer
Independent Officer
Independent Officer
Governance

Foundation that Supports the NGK Group’s Sustainable Value Creation
72
NGK REPORT 2022
Attendance record with 
committee members
Main career history and expertise
Nomination 
and 
Compensation 
Advisory 
Committee
Business 
Ethics 
Committee
Field of experience
Specialized knowledge
Overall 
management
Overseas 
business
International 
experience
Marketing
Manufacturing 
technology
R&D
Finance
Legal
Compliance
HR/Labor
ICT
Environment
Energy 
conservation
(4/4)
(4/4)
(—)
Chairperson
(4/4)
Chairperson
(5/5)
(4/4)
(5/5)
(4/4)
(5/5)

73
NGK REPORT 2022
Audit & Supervisory Board Members (as of June 30, 2022)
Shigeru  
Kobayashi*
President
Overall Corporate Management; Executive Committee 
Chair; Strategy Committee Chair; ESG Management 
Committee Chair
Chiaki 
Niwa*
Executive 
Vice 
President
Top Executive R&D, Manufacturing Engineering; Corporate 
R&D and Manufacturing Engineering Group Executive; 
Responsible for Digital Transformation and Innovation 
Dept., Quality Management Dept., Environment, Industrial 
Safety & Health Dept.; Development and Commercialization 
Committee Chair; Quality Committee Chair; and 
Environment, Safety and Industrial Health Committee
Ryohei 
Iwasaki*
Executive 
Vice 
President
Responsible for Business Groups; Group Executive, 
Corporate NV Creation; Development and 
Commercialization Vice Committee Chair
Tadaaki 
Yamada*
Senior Vice 
President
Responsible for Auditing Dept., Human Resources Dept., 
Group Compliance Dept., Legal Dept., Intellectual Property 
Dept., and General Affairs Dept.; General Manager, Human 
Resources Dept.; Chief Compliance Officer; Compliance 
Committee Chair, Internal Controls Committee Chair; HR 
Committee Chair; General Manager, Osaka Branch
Shuhei 
Ishikawa
Senior Vice 
President
Group Executive, Energy & Industry Business Group
Tsutomu 
Nanataki
Senior Vice 
President
Group Executive, Corporate R&D
Hiroto 
Matsuda
Senior Vice 
President
Group Executive, Digital Society Business Group; General 
Manager, High Performance Ceramics Div.
Hideaki 
Shindo*
Senior Vice 
President
Responsible for ESG Management Dept., Corporate 
Planning Office, Secretarial Office, Finance and Accounting 
Dept., and Purchasing Dept.; Senior Officer in charge of 
Group Companies
Jun 
Mori
Senior Vice 
President
Group Executive, Environment Business Group; General 
Manager, Nagoya Site
Hiroshi 
Kurachi
Senior Vice 
President
General Manager, Sensor Div., Environment Business 
Group
Masanobu 
Inoue
Senior Vice 
President
In charge of Digital Transformation and Innovation Dept., 
Quality Management Dept., and Environment, Industrial 
Safety & Health Dept.
Executive Officers (as of June 30, 2022) (*Serve concurrently as directors)
Hiroharu 
Kato
Senior Vice 
President
General Manager, Global Sales & Marketing Div., 
Environment Business Group
Atsushi 
Miyajima
Senior Vice 
President
Group Executive, Corporate Manufacturing Engineering; 
Capital Investments Committee Chair
Hiroyuki 
Shinohara
Senior Vice 
President
General Manager, Corporate Planning Office
Iwao  
Ohwada
Vice  
President
In charge of Global Business Creation, Corporate NV 
Creation
Tatsumi 
Ichioka
Vice  
President
General Manager, Energy Storage Div., Energy & Industry 
Business Group; General Manager, Komaki Site
Ryo 
Ishihara
Vice  
President
General Manager, ESG Management Dept.; In charge of 
Secretarial Office; General Manager, Tokyo Main Office
Mayumi 
Inagaki
Vice  
President
In charge of Auditing Dept., Group Compliance Dept., 
Legal Dept., and Intellectual Property Dept.; Compliance 
Vice Committee Chair
Hirofumi 
Sakamoto
Vice  
President
General Manager, Engineering Div., Environment Business 
Group
Hideki 
Shimizu
Vice  
President
President, NGK ELECTORONICS DEVICES, INC.
Kazushi 
Tada
Vice  
President
General Manager, Sales & Marketing Div., Energy & Industry 
Business Group; General Manager, Insulator Div.
Ryugo 
Takeda
Vice  
President
President, NGK EUROPE GMBH (Germany)
David 
Miller
Vice 
President
President, FM INDUSTRIES, Inc.
Takao 
Onishi
Vice  
President
General Manager, Electronic Devices Div., Digital Society 
Business Group
Takashi 
Yoshino
Vice  
President
General Manager, SW Development Dept., Corporate R&D
Motoo 
Noritake
Vice  
President
General Manager, Industrial Process Div., Energy & Industry 
Business Group
Yoshihide 
Natsume
Vice  
President
General Manager, New Metals Div., Digital Society Business 
Group; General Manager, Chita Site
Governance
Name, position, and age
Years in 
office/No.  
of NGK 
shares held
Reasons for appointment
Board of 
Directors 
meeting 
attendance 
record
Audit & 
Supervisory 
Board 
meeting 
attendance 
record
Committees
Nomination 
and  
Compensa-
tion Advisory 
Committee
Business 
Ethics 
Committee
Nobumitsu Saji
Full-time Audit & 
Supervisory Board 
Member
63
1
5,000 
shares
We are confident that Mr. Saji can contribute to 
strengthening the governance of NGK by utilizing 
his extensive experience and knowledge in 
business operation and compliance to audit all 
aspects of management.
13/13
10/10
Takeshi 
Shimazaki
Full-time Audit & 
Supervisory Board 
Member
62
3
817 
shares
We are confident that Mr. Shimazaki can 
contribute to enhancing the corporate value of 
NGK by utilizing his extensive experience and 
knowledge in finance and accounting, and 
business audits to audit NGK’s businesses.
13/13
14/14
Masayoshi 
Sakaguchi
Outside Audit & 
Supervisory Board 
Member
64
3
0 shares
We are confident that Mr. Sakaguchi can 
contribute to enhancing the corporate value of 
NGK by utilizing his extensive experience in 
government administration and record in 
managing large organizations to audit all aspects 
of management at NGK from the perspectives of 
the legality of operations and risk management.
13/13
14/14
Observer
(5/5)
Takashi 
Kimura
Outside Audit & 
Supervisory Board 
Member
67
Newly 
appointed
0 shares
We are confident that Mr. Kimura can contribute 
to enhancing the corporate value of NGK by 
utilizing his experience and knowledge in finance 
and corporate governance as well as his 
extensive experience and knowledge as an 
auditor of listed companies to audit all aspects of 
management at NGK.
—
—
(—)
Independent Officer
Independent Officer

Foundation that Supports the NGK Group’s Sustainable Value Creation
74
NGK REPORT 2022
The compensation system for directors (excluding outside 
directors) and corporate officers has been established for the 
purpose of contributing to the Group’s sustainable growth and 
the enhancement of its medium-to-long-term corporate value by 
practicing the NGK Group Philosophy and realizing the NGK 
Group Vision. 
	
Compensation of directors (excluding outside directors) and 
corporate officers consists of three components: basic 
compensation, a performance-linked bonus, and stock-based 
compensation.
	
NGK only pays fixed annual compensation to outside 
directors and Audit & Supervisory Board members. We do not 
pay them performance-linked bonuses and stock-based 
compensation by granting restricted shares.
	
The relative proportions of variable compensation and fixed 
annual compensation are determined from the perspective of 
focusing on stability and improvement in performance over the 
medium and long term. Total variable compensation consists of a 
performance-linked bonus and the cash conversion value of 
restricted shares granted. It is set at an appropriate percentage 
of total compensation. The total amount of compensation, 
including basic compensation, is set according to the position 
and rank of the recipient. It is also taking into consideration the 
level of compensation according to the size of the company, 
which is based on data from a reliable external organization.
	
The Nomination and Compensation Advisory Committee 
consists of a majority of independent outside directors. At the 
request of the Board of Directors, the committee deliberates on the 
policies and procedures for determining compensation. The 
committee deliberates on and proposes the range of compensation 
for all directors and Audit & Supervisory Board members, basic 
compensation, and the basic amounts used as the basis for 
calculating performance-linked bonuses, and the number of 
restricted shares to grant (the level of monetary claims for payment 
as compensation for restricted shares granted) according to the 
position and rank of each individual director and corporate officer; 
and deliberates and proposes the amount of the performance-
linked bonus for each individual director. The committee then 
reports its decisions on these matters to the Board of Directors.
	
The Board of Directors determines the amounts of 
compensation  for directors and corporate officers after sufficient 
consideration of the recommendations received from the 
Nomination and Compensation Advisory Committee, as 
described above.
Policies for Determining Compensation of Directors
Composition of Director and Corporate Officer Compensation
Basic compensation
Fixed annual compensation corresponding 
to position
Performance-linked bonus
Bonus corresponding to 
annual business performance
Restricted shares
Same benefits and 
risks as shareholders
Directors: Annual amount not exceeding 800 million yen
Audit & Supervisory Board members:  
Annual amount not exceeding 100 million yen
Directors: Annual amount not exceeding 
200 million yen
The following indicators are used in calculating the performance-linked bonus.
Performance-Linked Bonus Calculation Method (FY2022)
Short-term 
perspective
Medium to long-term 
perspective
• Consolidated performance indicators for FY2022: Net sales, operating income, net income, and return on invested capital 
(ROIC)* (target at the beginning of (or during) the fiscal year and results)
• Consolidated performance results for FY2021: Net sales, operating income, and net income
• Medium and long-term performance targets established in the NGK Group Vision: Operating income
• Creation of new products and new businesses—Keep Up 30
• Initiatives to Reduce CO2 Emissions
*NGK ROIC is calculated based on operating income, sales receivables, inventories, and fixed assets.
Overview of Restricted Shares
 Restriction period: The period extending from the date on which shares were granted as restricted share compensation for 2022 until the directors (excluding outside directors) 
and corporate officers resign from their positions as determined by the Board of Directors in advance.
 Conditions for release from restriction period: The restrictions on shares will be released when the restriction period has expired, provided that the individual granted the shares 
has continuously served in any of the positions determined by the Board of Directors in advance during the period extending from the date on which individual assumed the 
position until the immediately prior to the conclusion of the first annual Shareholders’ Meeting subsequently convened.
 Gratis acquisition of shares by NGK: NGK will acquire all of the shares granted without paying compensation when certain grounds specified in the allotment agreement apply, 
such as when the grantee has violated laws and regulations.
(The basic bonus amount is allocated among the various performance indicators. Calculation of the bonus amount for each performance indicator ranges from -100% to +100%, 
according to the degree of achievement. As a result, the total amount of the performance-linked bonus ranges between -100% to +100% of the basic bonus amount.)
Short-term perspective
Medium-to-long-term perspective
Individual evaluation 
(100%)
Basic bonus
amount
Percentage returned 
on invested capital 
(100%)
Increase/decrease  
from previous fiscal  
year results (100%)
Percentage achieved of 
medium-to-long-term 
performance targets (100%)
Percentage achieved on 
important issues for the 
current fiscal year (100%)
Amount paid
Percentage returned on 
invested capital
 -100 to +100% 
Change from the 
previous year’s results
 -100 to +100% 
Increase/decrease from 
previous fiscal year results
 -100 to +100% 
Percentage achieved on important 
issues for the current fiscal year
 -100 to +100% 
Individual evaluation
 -100 to +100%

75
NGK REPORT 2022
The revised NGK Group Chief Executive Officer Succession Plan 
was approved by resolution of the Board of Directors in April 
2022. This succession plan establishes the required qualities, 
development policies, selection procedures, and other actions 
for developing chief executive officer successors. Based on this, 
the president provides the Nomination and Compensation 
Advisory Committee with a progress report on the plan each 
year, and the committee reviews the appropriateness of the plan.
Directors and Audit & Supervisory Board members have been 
tasked with the responsibility of exercising the due care of a 
good manager. The Company therefore has established a 
training policy of providing the following types of opportunities to 
sharpen skills and knowledge so that they can fully execute their 
duties as experts in various kinds of management or as 
supervisors of business execution.
1. For internal officers: Training on the Companies Act, the 
Financial Instruments and Exchange Act, competition laws, 
Competition Law), and other aspects of corporate governance 
and compliance
2. For outside officers: Mainly providing separate explanations 
from the division in charge concerning items on the agenda of 
the Board of Directors and regularly providing information on 
the business environment and issues as well as opportunities 
for exchanging opinions
The Board of Directors and the executive bodies overseen by the 
president are responsible for establishing and operating NGK’s 
internal control system. The Auditing Department, a specialized 
internal audit body, is responsible for assessing the status of 
business execution in each operating division. NGK has also 
established the Internal Controls Committee to manage its 
reporting system for internal controls pursuant to Japan’s 
Financial Instruments and Exchange Act.
	
The NGK Group Code of Conduct (revised in January 2019) 
was formulated as a policy embodying the Group’s corporate 
philosophy. These guidelines specify the Group’s fundamental 
stance on sincerely engaging in business activities and fulfilling its 
responsibilities to society.
	
The task of ensuring Group-wide compliance with the NGK 
Group Code of Conduct, along with laws, regulations, and 
corporate ethics, is the responsibility of the Compliance Activity 
Promotion 
	
Subcommittee, which was established by the Compliance 
Committee and consists of managers from NGK divisions. The 
Business Ethics Committee handles matters concerning 
improper acts and legal violations involving NGK executives, and 
ensuring compliance with competition laws and Foreign Corrupt 
Practice Act.
	
The Board of Directors adopted an amendment to the 
“Resolution for the Development of Systems to Ensure the 
Appropriateness of Operations” at the March 2022 board meeting.
Amount of Compensation for Directors and Audit & Supervisory Board Members
Management Succession Planning
Training Policies for Officers
Internal Control Systems
Officer category
Total compensation 
(million yen)
Total compensation by type (million yen)
Applicable officers 
(people)
Fixed compensation
Performance-linked 
compensation
Stock options
Directors (excluding Outside Directors)
685
341
278
66
11
Outside Directors
41
41
—
—
3
Audit & Supervisory Board Members  
(excluding Outside Audit & Supervisory Board Members)
67
67
—
—
3
Outside Audit & Supervisory Board Member
27
27
—
—
2
Name
Officer 
category
Company category
Total compensation  by type (million yen)
Total compensation 
(million yen)
Fixed compensation
Performance-linked 
compensation
Stock options
Taku Oshima
Director
Submitting company
68
69
14
152
Shigeru Kobayashi
Director
Submitting company
68
69
13
151
Hiroshi Kanie*
Director
Submitting company
45
45
10
101
Chiaki Niwa
Director
Submitting company
45
45
10
101
Compensation for Directors and Auditor & Supervisory Board Members (FY2021)
Officers Receiving Total Compensation of ¥100 Million or More (FY2021)
Notes:	1. The total amount of compensation for directors (excluding outside directors), the total amount of compensation by type, and the number of applicable officers noted above 
include five directors who resigned from their positions on June 28, 2021 and the compensation  each received. 
	
2. The total amount of compensation for Audit & Supervisory Board members (excluding outside Audit & Supervisory Board members), the total amount of compensation by 
type, and the number of applicable officers noted above include one Audit & Supervisory Board member who resigned from his position on June 28, 2021 and the amount 
of compensation he received.
*Resigned on June 27, 2022
Governance

Foundation that Supports the NGK Group’s Sustainable Value Creation
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NGK REPORT 2022
At NGK, we conduct separate Audit & Supervisory Board audits, 
accounting audits, and internal audits. The members of the Audit 
& Supervisory Board, accounting auditor, and internal Auditing 
Department who lead each of these audits regularly exchange 
information related to auditing policy, planning, results, and other 
areas pertinent to improving auditing effectiveness and efficiency.
	
NGK’s Audit & Supervisory Board consists of two full-time 
members and two outside members. One person is assigned as 
dedicated support staff and possesses the appropriate 
knowledge, skills, and experience to assist the Audit & 
Supervisory Board members.
	
Transfers, evaluations, and other decisions concerning 
support staff must be approved by the Audit & Supervisory 
Board to more fully ensure independence from the Board of 
Directors and the ability of support staff to effectively implement 
the instructions of Audit & Supervisory Board members.
	
Internal audits are performed by the 14 members of the 
Auditing Department. The general manager of the Auditing 
Department is also a member of the Internal Controls 
Committee. Quality, environmental, and health and safety-related 
audits are performed by departments within the NGK Group that 
possess specialized knowledge in these areas.
	
As of July 2022, accounting audits are overseen by two 
certified public accountants from Deloitte Touche Tohmatsu LLC.
NGK holds shares in listed companies that contribute the 
long-term business development of the NGK Group as 
cross-shareholdings, primarily to maintain and strengthen 
transactional relationships. We also hold shares in each company 
in the Morimura Group, which shares a common founder. We 
hold these shares to mutually enhance management quality 
because the Morimura Group brand is part of NGK’s corporate 
value through its philosophy and history.
	
As part of our asset portfolio, all cross-shareholdings are 
positioned as assets to supplement the liquidity considered 
necessary for our business plans. We always keep shrinking the 
size of cross-shareholdings in mind from the perspective of asset 
efficiency, and the size of cross-shareholdings may change due 
to changes in overall business trends and risks, financial 
conditions, the transactional relationship with each company 
whose shares we hold, and other such factors.
	
The Board of Directors regularly reviews NGK’s capital policy 
and whether it is appropriate to continue holding these shares 
based on certain indicators in addition to significance of holding 
shares from the perspective of the transactional relationship. 
Such indicators include the credit rating and other indicators of 
the safety in holding shares, and the dividend yield and other 
indicators of efficiency. With respect to the cost of capital, 
shareholdings are not evaluated in isolation. We also evaluate 
cross-shareholdings as part of the balance sheets for each 
business, which have different risks and anticipated rates of 
return, in managing the return on invested capital (NGK ROIC)  
for each business.
	
When exercising voting rights on cross-shareholdings, we 
focus on whether the business is being managed with an 
emphasis on enhancement of corporate value, shareholder 
return, in addition to evaluation from the perspective of the 
content of resolutions and whether they will adversely affect 
shareholder return.
Audit Structure
Policy on Cross-Shareholdings 
Status of Cross-Shareholding
Number of Cross-Shareholding Companies
Reported Cross-Shareholdings Balance
(Companies)
18/3
19/3
20/3
21/3
22/3
84
100
80
60
40
20
0
81
79
77
76
(million yen)
18/3
19/3
20/3
21/3
22/3
52,274
60,000
40,000
50,000
30,000
20,000
10,000
0
47,775
33,164
43,277
39,961

77
NGK REPORT 2022
The NGK Group has established a Compliance Committee, 
which reports directly to the president. A Compliance Activity 
Promotion Subcommittee was established as part of the 
Compliance Committee to ensure proper execution of the 
Committee’s work.
	
In FY2021, we asked Group companies to select compliance 
administrators and compliance officers and began discussions 
with them to establish the foundations of an effective and efficient 
compliance structure for the entire NGK Group. The Group 
Compliance Department is also leading the introduction of 
innovative training formats in each company using hybrid 
communication that includes group discussions as well as online 
and in-person meetings in an effort to enhance learning through 
interactive education. The goal of pursuing these efforts is to 
make sure that each NGK Group company will be able to 
independently formulate, implement, confirm effectiveness, and 
improve compliance measures in the future.
Compliance Promotion Structure
Observing Competition Laws, Other Laws and Regulations Pertaining to  
Business Transactions
Independent Review of Competition Laws Compliance Program
Corruption Prevention Structure
Compliance
In addition to mandating compliance with competition laws in the 
NGK Group Code of Conduct, we have established the 
Competition Laws Compliance Rules, set forth to comply with 
international standards. These standards are strictly enforced by 
the NGK Group. We have established these policies and 
procedures in order to eradicate unfair business practices and 
maintain fair and equitable business relationships with our 
business partners.
	
We also provide education and training aimed at ensuring 
widespread awareness and thorough compliance with the 
Competition Laws Compliance Rules and the Competition Laws 
Compliance Handbook. The Competition Laws Compliance 
Activity website we established posts practical manuals to guide 
compliance with competition laws. The Competition Laws 
Compliance Handbook was revised in FY2021 to accommodate 
changes in social conditions.
Since FY2015, NGK has contracted PwC Advisory LLC 
(hereinafter, “PwC”) as an independent compliance professional. 
We retain PwC to perform an annual review of the NGK Group’s 
implementation of its competition law compliance program 
according to the Competition Laws Compliance Rules. PwC also 
assesses the overall oversight and reporting structures in place 
for NGK Group companies, both in Japan and overseas 
locations. In FY2017, PwC began conducting interviews with the 
directors overseeing NGK’s various business groups in order to 
assess the tone of each director’s approach toward competition 
law compliance and further enhance their awareness of these 
efforts. The results of these reviews are used in operating and 
improving the competition law compliance program and other 
purposes.
The NGK Group Code of Conduct states, “We will never in any 
manner undertake bribery” and “We will undertake business 
activities with common sense and based on strict compliance 
and ethics.” To this end, we implement anti-bribery measures in 
order to ensure fair and transparent transactions. In FY2015, we 
formulated anti-bribery rules for dealing with foreign public 
officials in order to ensure compliance with anti-bribery laws as 
well as ethical standards for business conduct. These rules 
prohibit engaging in acts of bribery, either directly or indirectly 
through a third party (entertainment, gifts of money and/or 
goods). The rules likewise prohibit payments to public officials to 
facilitate administrative procedures. Our Auditing Department 
also began reviewing overseas money transfers and 
entertainment expenses from FY2017.
Compliance Committee
Chair: Vice President responsible for Group Compliance Dept.
Vice-Chair: Vice President in charge of Group Compliance 
Dept.
Members: Executive vice presidents, Group executives, 
Group business executives, etc.
All divisions
Group Companies
Compliance Activity Promotion Subcommittee
• Administrative Office: Group Compliance Dept.
• Members: Dept. Managers
President
Compliance Promotion Structure
Governance

Foundation that Supports the NGK Group’s Sustainable Value Creation
78
NGK REPORT 2022
Conducting Anti-Bribery Training
Whistleblowing System
Helpline
Hotline
In addition to having in-house lecturers provide job grade-specific 
training to NGK employees, in FY2019 we began conducting 
training for sales department employees that incorporates 
interactive lectures by outside lawyers and group discussion of 
case studies. We also arrange attorney-led seminars and other 
training at all Group companies.
Our whistleblowing system (helplines and hotlines) can be used 
by everyone who works at NGK and every Group company 
location. This includes officers, employees, employees 
dispatched on external assignments, advisors, contract 
employees, temporary employees based on a temporary 
employment agreement, and resident employees accompanying 
a service contract. Consultations and reports should be handled 
by a designated agent in principle, but it is also possible to seek 
consultation anonymously through an outside hotline. Our 
company rules guarantee protection of those seeking advice or 
reporting issues. We have also revised the company rules and 
established a structure to align with enforcement of the revised 
Whistleblower Protection Act.
We have established a helpline to receive inquiries and reports 
from employees aimed at curtailing and preventing activities 
contrary to the spirit of the NGK Group Code of Conduct and to 
facilitate quick resolution when issues occur. Each Group 
company outside Japan has its own helpline. In FY2021, these 
helplines received requests for consultation on a variety of issues, 
including harassment, rule violations, and quality issues.
We have established a hotline as a whistleblowing system for 
responding to fraud and legal infractions committed by senior 
management of NGK, and all violations related to competition 
laws and anti-corruption laws. Outside lawyers manage the 
hotline and the Business Ethics Committee, which consists 
mainly of outside directors, handles issues. The Committee 
reports these issues to the Board of Directors and takes 
corrective steps.
	
We continue to set up hotlines at Group companies outside 
Japan to respond to fraud and legal infractions committed by 
senior management, while taking the circumstances in each 
country into consideration. All Group companies outside Japan 
have set up hotlines for matters related to competition laws and 
anti-corruption law-related violations.
FY2019
FY2020
FY2021
55
28
43
Number of Helpline Consultation Cases (NGK)
Organization of Whistleblowing System
Compliance Committee
Helpline Secretariat Administrative Office
Business Ethics Committee
Board of Directors
Person reporting or seeking consultation
Observer (lawyer)
Internal contact (Group Compliance Dept., others)
External contact (lawyers)
Fact-finding, corrective action 
reoccurrence prevention
Recommend formulation of corrective actions to 
Board of Directors and monitor status of implementation
Report helpline activities
Recommendations, monitoring
• To report misconduct that violates laws and regulations, internal company rules, and the NGK Group Code 
of Conduct, that is difficult to consult a superior about
• For fraud and legal violations involving senior management of NGK (including instructions and commands)
• Violations of competition laws and laws and regulations to prevent bribery
Helpline
Hotline
Report helpline activities

79
NGK REPORT 2022
Information Security Measures
Information Security
Within the NGK Group, proper management and operation of 
information assets is a collaborative effort carried out by the 
General Affairs Department and ICT Department, in conjunction 
with other relevant administrative divisions and in line with the 
Basic NGK Group Information Security Policy.
	
Every employee who uses a computer or other information-
processing devices as part of their job is provided with our 
“Electronic Information Security Handbook” and is encouraged in 
the proper use of his or her device. Employees are also told that 
they must contact the General Affairs Department and ICT 
Department if the device is lost, infected with a computer virus, 
or otherwise compromised. Under the rules of employment, 
employees are subject to disciplinary action if improper use of an 
information device results in the leaking of confidential 
information or results in other harm that significantly impacts the 
company. Personnel from NGK’s ICT Department visit several 
Group companies each year to conduct on-site checks and 
provide guidance on implementation of IT security measures. In 
FY2021, due to the impact of the global COVID-19 pandemic, 
these visits to overseas Group companies were not carried out; 
however, online sessions were held in order to share with them 
the IT security enhancement policies and measures implemented 
over the medium term. Additionally, we established a meeting 
body called the IT Global Meeting. This meeting body is split into 
the four regions of North and Central America, Europe and 
Africa, China, and Asia Pacific. Group companies located within 
each region participate in regional meetings where they discuss 
NGK’s ICT and DX strategies, including IT security.
Formulation of the Basic NGK Group IT Security Standards
We formulated the NGK Group IT Security Standards in FY2010 
and have continued to revise them as needed to develop an IT 
security structure based on commonly shared Group standards 
and enhance IT security.
	
Every year, each Group company drafts action plans for the 
enactment of countermeasures in an attempt to systematically 
strengthen security. Via these action plans, NGK confirms 
initiatives at each Group company and provides guidance as 
necessary.
Ensure IT Security Against Cyberattacks
As a countermeasure against cyberattacks, NGK is 
strengthening each category of protection, detection, response, 
and recovery from cyberattacks following the cybersecurity 
framework announced by the National Institute of Standards and 
Technology (NIST) of the U.S.
	
In FY2021, we worked to improve and strengthen our 
detection capabilities in particular. This included upgrading our 
anti-virus software on all company devices and sending its logs 
in order for an outside specialist to monitor and analyze. We 
prepared a SOP for response to and recovery from cyberattacks 
based on the latest trends ensuring we are prepared for any 
cyber contingency. In FY2022 and beyond, we plan to conduct 
annual training exercises on IT security incidents as well as verify 
and upgrade the effectiveness of relevant documents.
Information Security Training
We conduct training sessions throughout the year to ensure strict 
adherence to information security among all employees.
	
We offer training for newly hired employees and newly 
promoted supervisors and managers to NGK employees while 
e-learning is offered to NGK employees and employees of some 
Group companies in Japan.
Item
Participants
Participation 
rate
Training for newly hired employees
105
100%
Training for newly promoted supervisors
116
100%
Training for newly promoted managers
68
100%
E-learning
5,601
100%
*Excluding employees who were away on maternity leave, childcare leave, long-term 
business trips, etc.
Privacy Policy and Organization for Personal Information Protection
The NGK Group has established internal rules on privacy 
protection compliant with the Amended Act on the Protection of 
Personal Information of Japan which took effect from April 1, 
2022 in an effort to ensure strict handling, management, and 
protection of personal information obtained from customers. In 
FY2015, we formulated and published our Basic Policy on the 
Proper Handling of Specific Personal Information in response to 
the enforcement of the Act on the Use of Numbers to Identify a 
Specific Individual in Administrative Procedures.
Governance
LINK
Privacy Policy
https://www.ngk-global.com/privacypolicy/
ngk-and-group-companies/en.html

Foundation that Supports the NGK Group’s Sustainable Value Creation
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NGK REPORT 2022
Basic View
Risk Identification Process
Risk Management
The NGK Group addresses the issue of serious 
risk by empowering the following committees to 
facilitate risk avoidance and prevention, in 
accordance with the Basic Rules of Crisis 
Management. Additionally, in the event of some 
particularly significant risk, the senior vice 
president in charge of the Corporate Planning 
Office can call a meeting, which would include 
the president, to develop countermeasures.
	
In times of increasing socio-economic 
uncertainty, it is important to have a heightened 
awareness of risk and to act before risks turn 
into crises. Therefore, in addition to the five 
committees, which we maintain in order to 
oversee matters of day-to-day risk, we also 
have in place a system by which top 
management can coordinate a rapid response 
to growing risks.
All risks discovered through the standard risk management 
process, which have the potential to affect the operational or 
financial situation of the NGK Group are collected, reevaluated, 
and serious risks were identified in FY2019. The ESG 
Committee (former name in 2019) then deliberated and 
designated which identified risks need to be managed by the 
NGK Group as a whole.
	
In FY2021 we began considering building a company-wide 
risk management framework which includes the risk identification 
process, and we aim to implement it in FY2022.
Compliance Committee
Chair: Senior Vice President
Environment, Safety & Health 
Committee
Chair: Executive Vice President
Quality Committee
Chair: Executive Vice President
HR Committee
Chair: Senior Vice President
Central Disaster Prevention and 
Control Headquarters
Headquarters chief:  
Senior Vice President
President
<Serious crisis control situations> 
Response Committee
Chair: President
BCP Countermeasures 
Headquarters
Headquarters chief: President
Standard crisis management situations
5
10
3
0
4
12
8
0
3
28
17
9
2
29
30
11
1
28
30
25
1
2
3
Frequency of occurrence
The NGK Group uses the above results to 
create a risk heat map
Newness of risk
Scope of risk
Existing risk management activities
1
CSA questionnaire, compliance 
awareness survey
2
Special risk examination sheet
3
Information relevant to the 
creation of securities reports
4
Information relevant to the 
creation of integrated reports
Risk list
Risk Management Framework
Degree of impact

81
NGK REPORT 2022
Risks, Risk Summaries, Risk Responses 
Risk
Summary
Response
1. Business  
operation risks
All operations
• Demonstrations, terrorism, war, infectious or communicable 
diseases, and other unforeseen circumstances
• Construct globally distributed, alternative systems
(1) Environment Business
• Changes that lead to a decline in demand for internal 
combustion engine vehicles
• Develop and launch new and high-performance products in 
line with stronger exhaust regulations
• Drop in market share due to rising competition from 
Chinese market
• Strengthen competitiveness via technical responsiveness 
that anticipates environmental regulations and via supply 
stability
• Decline in demand due to downturn in business, delayed 
timing of regulations, or other factors
• Respond appropriately to the nature and timing of 
environmental regulations and trends in demand
(2) Digital Society Business
• Greater than expected decline in demand for 
semiconductors
• Work together with direct customers who manufacture 
semiconductor manufacturing equipment, and make 
revisions to equipment capacity and personnel and 
production systems, etc., as appropriate
• Drop in market share due to delayed responsiveness to 
customer needs
• Differentiation through our unique materials, design, and 
manufacturing technologies
• Improve product supply capacity
• Major changes in the semiconductor manufacturing 
process from innovative inventions
• Closely monitor semiconductor manufacturing process 
trends and revise production systems as appropriate to 
quickly respond to changes in demand.
• Drop in demand for end-consumer goods
• Decrease in investment in mobile base stations and data 
centers
• Carefully monitor customer trends and revise the personnel 
structure and production system where appropriate to 
enable quick response to changes in demand
• Inability to develop new technology or release products 
compatible with customer needs
• Carefully monitor customer trends and pursue timely 
technological development
(3) Energy & Industry Business
• Spread of competitors’ products, such as lithium-ion 
batteries, that use innovative technologies
• Point out superior points of NAS batteries (large capacity, 
long life)
• Strengthen partnerships with leading overseas companies
• Take advantage of government support
• Changes in the energy policies of individual countries
• Cutbacks in capital investment by electric power 
companies
• Use of polymer insulators in the domestic market
• Carefully monitor government policy on electric power in 
each country and revise production systems where 
appropriate to ensure quick response to changes in 
demand
• Drop in market share from growth in competition in cathode 
materials for lithium-ion batteries and kiln for electronic 
components
• Carefully monitor customer trends and pursue innovation in 
production systems where appropriate to ensure quick 
response to changes in demand
2. R&D-related risks
• Inability to achieve adequate results with the input received 
due to increasing competition among technologies
• Set aside a total of 300 billion yen for research and 
development expenses over the next 10 years, 80% of 
which will be allotted to the carbon neutrality (CN) and 
digital society (DS) areas
• Set a target of 100 billion yen in sales from new products 
and new businesses by 2030 (New Value 1000)
• Established Corporate NV Creation led by marketing
Governance

Foundation that Supports the NGK Group’s Sustainable Value Creation
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NGK REPORT 2022
Risk
Summary
Response
3. Legal compliance, 
human rights and 
safety, and 
quality-related risks
(1) Legal compliance-related risks
• Decline in NGK Group’s reputation due to actions contrary 
to social expectations with regard to legal and regulatory 
compliance, respect for human rights, contract compliance, 
etc.
• Utilize employee training and handbook distribution to 
ensure employees are familiar with relevant laws and 
regulations and have a more compliance-focused mindset
• Formulate NGK Group Basic Guidelines for Compliance 
Activities  aligned to international standards
• The Business Ethics Committee, which consists of outside 
directors and compliance officers, monitors and prevents 
serious improprieties or legal/regulatory violations
• Reduce the possibility of compliance violations through a 
whistleblowing system
(2) Human rights and safety-related risks
• Human rights violations in the NGK Group’s business 
activities
• Formulation of the NGK Group Human Rights Policy
• Issuance of statement on the UK Modern Slavery Act
• Compliance with international regulations related to human 
rights
• Provision of a safe and enjoyable work environment that is 
comfortable to work in for all
• Employee occupational accidents, illness, or physical and 
mental health problems
• In accordance with NGK Safety and Health Policy, identify 
serious hazard risks and use risk assessment to facilitate 
strengthening of preventive measures
• Follow up on employees who work long hours and conduct 
job grade-specific mental health education
(3) Quality-related risks
• Quality-related risks such as loss of trust or profits, or 
contraction in growth, due to serious market complaints, 
contractual violations, or other operational deficiencies
• Have the Quality Management Department monitor each 
business group’s quality activities, in line with NGK Quality 
Policy and under direct supervision of senior management
• Regarding serious issues, convene quality review meetings 
in order to find a solution quickly
• Establishment of Four Rules for Quality Activities
• Company-wide deployment of quality risk elimination 
process activities
4. Information 
systems-related  
risks
• External cyber attacks and unauthorized access 
• Shutdown of data processing caused by unexpected 
system malfunctions and security issues
• Negative impact on societal trust or business continuity due 
to theft, destruction, manipulation, loss, etc., of data
• Establishment of an IT security system based on common 
standards within the Group
• Conduct information security training for employees
• Appropriate application and management of internal 
information assets
5. Currency exchange, 
capital, and 
procurement-related 
risks
• Decreased sales and profits and deterioration of business 
performance due to strong yen
• Risk of negative impact on business operations, 
performance, and financial situation of NGK Group as a 
result of financing difficulties stemming from serious regional 
financial crises and other factors
• Keep production close to local demand centers, finance in 
local currency, and optimize purchasing according to forex 
market conditions
• Hedge risks with forward foreign exchange contracts and 
other financial instruments
6. Materials procurement 
and supply 
chain-related risks
• Rising materials prices and energy costs in each region
• Reflect in appropriate pricing
• Reduce costs through competitive purchasing, revising 
designs, and other means
• Delays in materials procurement and backlogged shipments 
to customers due to supply chain disruptions
• Inventory control
• Diversify product procurement
7. Climate change and 
disaster-related risks
• Deterioration in business performance due to additional 
costs incurred by future international GHG regulations, 
environmental taxes, carbon taxes, etc.
• Locations facing operational difficulties due to water 
damage from sea level rise, increased size and magnitude 
of typhoons, and increased frequency of local torrential 
rains caused by global warming, or major disasters, fire, or 
other serious incidents or accidents
• Disclose information on risks and opportunities based on 
recommendations from the Task Force on Climate-related 
Financial Disclosures (TCFD)
• Formulated the NGK Group Environmental Vision
• Develop and introduce products and services that 
contribute to the realization of a carbon-neutral society
• Target net zero CO2 emissions by 2050
• Serious damage to facilities at production bases due to 
events beyond expectation
• Long-term supply difficulties due to impacts on the local 
infrastructure where plants are located by events beyond 
expectation
• Decline in operations and negative impact on production 
and sales due to emergence and spread of major infectious 
disease, such as COVID-19 pandemic
• Promote business continuity plan (BCP) for entire Group
• Decentralize production sites for main businesses
• Purchase from multiple suppliers
• Implement disaster mitigation for buildings and equipment
• Secure safety of employees

83
NGK REPORT 2022
What should the NGK Group do to create sustainable value in a  
rapidly changing business environment?
We asked the outside directors to speak from various perspectives.
The NGK Group’s “present” and  
“future” as it pursues transformation
Outside Director
Kazuo Furukawa
Outside Director
Hiroyuki Kamano
Outside Director
Emiko Hamada
Dialogue with Outside Directors
Senior Vice President
General Manager,  
Corporate Planning Office
(MC)
Hiroyuki Shinohara

84
NGK REPORT 2022
Looking back on the first 
year under the new structure
Shinohara: The company started a 
new business structure under 
President Kobayashi in April 2021. 
Looking back on the first year, please 
tell us about your impressions.
Kamano: Formulating the NGK Group 
Vision has clarified the direction of the 
Group and unified the direction of all 
employees. I also believe continuously 
implementing specific measures 
raised the motivation of the entire 
Group and led to record-high profits 
despite the harsh environment caused 
by the COVID-19 pandemic. For 
President Kobayashi, I think it has 
been a very smooth start.
Hamada: I think announcing the 
group vision was a big deal. Clarifying 
the Group’s direction seems like it 
helps relieve anxiety related to the 
future of internal combustion engines.    
With regard to R&D and new 
businesses as well, I believe outlining 
the NV1000 and other bold new 
policies has created a sense of 
excitement among employees.
Furukawa: I highly appreciate 
President Kobayashi's leadership. We 
consolidated four business groups 
into three to streamline the 
organization and speed up decision-
making. We have managed to improve 
the deficit structure of the insulator 
business, and in the energy business, 
we have shifted from the product 
business to the solution business. This 
kind of business transformation is 
quite difficult, but we have carried it 
out with all our might and this direction 
has been well received by all of our 
employees. The product business and 
the solutions business are completely 
different things, but once we have a 
successful case, various roads will 
open up all at once, so I have high 
expectations.
Shinohara: What are your thoughts 
on the changes in the Board of 
Directors?
Kamano: The composition of the 
Board of Directors changed in June 
last year, reducing the number of 
members, which I believe provides 
opportunities for more active 
discussion. Agenda items include 
long-term and strategically important 
themes with the goal of digging 
deeper into company-wide issues. As 
a result, the quality of discussions is 
also improving.
Furukawa: The role of the Board of 
Directors is to supervise business 
execution, but at the same time, it 
must be a place where business plans 
and management strategies can be 
freely discussed. By clarifying and 
setting future goals, I think the 
company has fostered an atmosphere 
for thinking together towards 
achieving goals. The process of 
thinking has advanced from a simple 
explanations and confirmations into a 
forum for discussion.
Hamada: What should be done for 
the company to achieve what it wants 
to be? I feel that there is a stronger 
recognition that the Board of Directors 
is for creating a path towards the 
future of the NGK Group.
Shinohara: How about the issues 
touched on in last year's NGK Report ?
Kamano: Last year, I said that "80% 
of sales from carbon neutrality and 
digital society in 2050" would be very 
challenging, and that achieving it 
would require the development of a 
mechanism that enables a 
transformation in business structure. 
You can see how serious they took 
my opinion, including immediately 
setting up the Corporate NV Creation. 
In addition to prioritizing ESG 
management, the NGK Group has 
formulated a carbon neutral strategy 
based on the NGK Group 
Environmental Vision. I think that it is 
highly commendable that the 
company is promoting the creation of 
a system that is linked to sustainability.
Hamada: I talked about becoming an 
“open company” from the perspective 
of promoting diversity and the future 
of R&D, and I have the impression that 
the atmosphere has changed 
considerably over the past year. The 
Corporate R&D is proactively 
considering exchanges with the 
outside world, and Corporate NV 
Creation is actively working to tap 
external expertise. The Tokyo Main 
Office  also established a base for 
promoting collaboration with partners. 
Changes can be seen everywhere.
Furukawa: The company has set very 
clear targets, including targets for 
carbon neutrality – 550,000 tons of 
CO2 emissions by FY2025 (25% 
reduction compared to FY2013), 
370,000 tons by 2030 (50% reduction 
compared to FY2013). The company 
is also aiming for New Value 1000 in 
the form of 100 billion yen in net sales 
from new products by FY2030. While 
it requires a certain amount of bravery 
to make such a clear declaration, I 
think this is creating an atmosphere of 
a desire to take on challenges.
About initiatives related to 
ESG Management 
Shinohara: ESG management will be 
Foundation that Supports the NGK Group’s Sustainable Value Creation

85
NGK REPORT 2022
indispensable for a company to 
sustain itself for many years to come. 
The NGK Group is also focusing on 
ESG management as one of its Five 
Transformations that should be carried 
out in order to achieve the NGK Group 
Vision. Please discuss your evaluation 
or opinion on the company’s efforts 
thus far.
Hamada: Regarding environmental 
(E), the important point is that the 
company has formulated the NGK 
Group Environmental Vision. Concrete 
initiatives such as the Carbon Neutral 
Business Promotion Project and the 
Net Zero CO2 Emissions Project have 
been put in place in line with this 
vision. Furthermore, I think that the 
company has continuously undertaken 
drastic measures over the past year, 
such as even considering the use of 
ICP (Internal Carbon Pricing).
Kamano: Based on the 
recommendations of the Task Force 
on Climate-related Financial 
Disclosures (TCFD), this spring the 
company disclosed information on 
four items: governance, strategy, risk 
management, and indicators and 
targets. Although many companies 
are struggling to disclose this 
information, I sensed the Group's 
positive attitude toward environmental 
issues in its prompt response to these 
disclosure demands.
Furukawa: Regarding the issue of 
energy, I would like you to think about 
new developments from two 
perspectives: how to promote energy 
conservation itself, and how to invest 
in products that contribute to energy 
conservation. NGK operates in the 
energy field and has unique know-
how that other companies do not 
possess. I have expectations for 
products and services that only the 
NGK Group can provide.
Shinohara: What about social (S)?
Kamano: Regarding human rights, 
the company is promoting initiatives 
with a higher awareness of issues 
than before, including the 
implementation of human rights due 
diligence. Last fiscal year, the 
company announced the NGK Group 
Human Rights Policy, which outlines 
their approach to human rights and 
details on initiatives. Freedom of 
association and respect for the right to 
collective bargaining are among the 
priority issues, and I believe this is 
worth mentioning.
Furukawa: I think the important point 
with social (S) is further diversification. 
And the key to that is globalization. 
The NGK Group’s business regions 
are globalizing, but the company 
needs to globalize its overall efforts as 
well. The more globalization 
progresses, the more the company 
will need to respond to various values, 
which leads to further diversification.
Hamada: As social demands 
increase, so do the demands placed 
on companies. However, while 
responding to the issues of society as 
a whole, having an inner social 
understanding, outlining what the 
company wants to be, is also 
important. I would like you to aim to 
be a company where diverse human 
resources gather, where everyone can 
fully demonstrate their abilities and 
play an active role, where each 
employee trusts in the excellence of 
the company and does a good job.
Shinohara: What about governance 
(G)?
Kamano: I think corporate 
governance is improving through the 
reorganization of the Board of 
Directors. There is a high awareness 
of highly transparent governance, 
such as changing the chairman of the 
Nomination and Compensation 
Advisory Committee to an outside 
director, and I feel the company has 
built a system that gives stakeholders 
a sense of security. Regarding 
compliance, I believe that the 
company is making solid efforts, such 
as establishing a compliance activity 
reward system and expanding 
compliance education.
Furukawa: I think that The NGK 
Group’s compliance education is very 
thorough and impressive. Of course, 
there is no such thing as “good 
enough” in education. New people 
join the company every year, and with 
globalization, the number of 
employees will also expand regionally, 
so I hope that you will continue with 
your efforts moving forward.
Towards achieving the  
NGK Group Vision
Shinohara: The NGK Group Vision 
was just launched. Please tell us your 
thoughts on how you will respond to 
the expectations of stakeholders and 
society going forward.
Hamada: Until now, there may have 
been a lack of communication with 
the outside world. However, the 
announcement of the group vision has 
become a big message, and I think  
I felt a response. Also, when 
formulating the Group vision, the 
company asked employees for their 
opinions. I think that was very good 
idea.
Furukawa: I agree. Outlining a group 
Dialogue with Outside Directors

86
NGK REPORT 2022
vision led to the formation of a great 
panoramic view. The year 2050 
indicated by the Group vision may 
seem like a distant future. However, 
achieving goals will require 
implementing each measure starting 
now. On the other hand, the desire to 
achieve the vision at the time of 
drafting could decline or changes over 
time. For this reason, I think 
continuous monitoring and 
maintenance will be essential.
Hamada: I feel the same way. What 
starts off as a group vision created 
with the participation of all the 
employees could be forgotten at 
some point, and this vision may be 
perceived as something that the upper 
management did on their own. 
Therefore, it is important to 
appropriately communicate the 
progress, degree of achievement, 
evaluation, etc. to stakeholders.
Kamano: I have been an outside 
director since 2011, but I have never 
been involved in gathering the 
opinions of employees and engaging 
in repeated discussions, or working to 
align the company and employees on 
the same vector. I feel that the 
company has changed a lot over the 
past 10 years. While the company 
could face difficult situations in the 
future, I would like President 
Kobayashi to take strong leadership 
and move forward to earn even more 
trust from stakeholders.
The role outside directors 
should fulfill
Shinohara: Lastly, please share your 
thoughts on how you will fulfill your 
role as an outside director in order to 
accelerate the Five Transformations.
Kamano: I recognize that one of the 
duties of an outside director is to 
assist in the creation of an 
environment that supports appropriate 
risk-taking by management. I will take 
an aggressive approach to supporting 
healthy risk-taking. At the same time,  
I believe it is also important to 
objectively judge whether new 
investments and new businesses are 
appropriate. I want to contribute to 
improving corporate value by exerting 
a sense of balance that is possible as 
an independent outside director .
Furukawa: I would like to contribute 
to the promotion of reform by devoting 
myself to supervising the execution of 
business, an important responsibility 
of an outside director, and placing 
value on the approach of thinking and 
creating management together with 
internal directors.
Hamada: I want to use my outside 
position and expertise towards 
thoroughly monitoring the Five 
Transformations from various 
perspectives. Expectations for the 
NGK Group are rising, both 
domestically and internationally, and I 
will do everything in my power to 
support the transformation. I would 
like to support and advise in various 
ways and move forward together.
From right
Kazuo Furukawa
Emiko Hamada
Hiroyuki Kamano
Hiroyuki Shinohara
Foundation that Supports the NGK Group’s Sustainable Value Creation

87
NGK REPORT 2022
03
SECTION
NGK Group 
Corporate Data
89 Financial and Non-Financial Highlights
91 11-Year Key Financial and Non-Financial Data
93 NGK Group History
95 Corporate Outline/Stock Information
96 NGK Group/Data by Area
97 Third-Party Opinion
98 External Evaluation
Contents

88
NGK REPORT 2022
 NGK Group by the numbers 
 NGK Group then and now 
 NGK Group, a third-party perspective 
Highlights of Section 03
Realizing 
Our Achievements

89
NGK REPORT 2022
Financial and Non-Financial Highlights
Financial Highlights
Operating Income Margin
16.4%
Non-Financial Highlights
Operating Income
83.5 billion yen
Waste Generated (all NGK Group production sites)
54,000 metric tons
NGK ROIC  
(return on invested capital)
10.0%
Net Income Attributable to  
Owners of the Parent         
70.9 billion yen
Net Sales
510.4 billion yen
CO2 Emissions (all NGK Group production sites)
615,000 metric tons
Return on Equity  
(ROE)                   
12.9%
(Billions of yen)
18/3
19/3
20/3
21/3
22/3
451.1
600.0
500.0
400.0
300.0
200.0
100.0
0
463.5
442.0
452.0
510.4
(%)
18/3
19/3
20/3
21/3
22/3
70.0
100.0
80.0
60.0
40.0
20.0
20
10
0
0
64.7
55.0
50.8
83.5
15.5
14.0
12.4
11.2
16.4 
(Billions of yen)
（%）
18/3
19/3
20/3
21/3
22/3
45.8
80.0
60.0
40.0
20.0
20
10
0
0
35.5
27.1
38.5
70.9
10.4
7.6
5.8
7.9 
12.9 
(Billions of yen)
(10,000 metric tons)
18/3
19/3
20/3
21/3
22/3
84.1
100
60
80
40
20
0
86.8
87.3
75.6
61.5
(10,000 metric tons)
18/3
19/3
20/3
21/3
22/3
5.9
8
6
4
2
80
60
20
40
0
0
5.8
5.5
4.6
5.4
56
72
70
68
55
18/3
19/3
20/3
21/3
22/3
20
15
10
5
0
15.8
12.7
9.8
8.6
10.0 
(%)
Operating income
Operating income margin
Net Income attributable to 
owners of the parent
Waste generated
Return on equity  
(ROE)
Per unit sales
Note:	Indexed to FY2013 = 100
	
Excludes non-production sites
Note:	Excludes non-production sites
	
Includes offsets from carbon neutral LNG use from FY2021 onward

90
NGK REPORT 2022
NGK Group Corporate Data
 
Free Cash Flow
48.5 billion yen
DE Ratio
0.4
Depreciation and Amortization
49.3 billion yen
Net Cash Used in  
Investing Activities
(46.3) billion yen
Net Assets
589.6 billion yen
Payout Ratio
27.8%
Capital Expenditures
38.1 billion yen
Percentage of Female Key Personnel (Managers) (NGK)
3.4%
Net Cash Provided  
by Operating Activities
94.8 billion yen
Total Assets
982.8 billion yen
Sales Growth for Products Contributing 
to Environmental Protection (NGK Group)
167
Dividend per Share
63 yen
18/3
19/3
20/3
21/3
22/3
826.2
472.9
1,000.0
800.0
600.0
400.0
200.0
1.0
0.5
0
0
863.6
833.1
909.0
982.8
0.5 
0.5 
0.5 
0.5 
0.4 
589.6
517.9
469.1
489.2
(Billions of yen)
18/3
19/3
20/3
21/3
22/3
50.6
-49.4
150.0
100.0
50.0
0
-50.0
-100.0
-150.0
61.2
53.2
85.6
94.8
1.1
-48.5
-7.6
33.9
-46.3
-51.7
-60.8
-109.7
48.5
(Billions of yen)
18/3
19/3
20/3
21/3
22/3
71.7
30.3
120.0
100.0
80.0
60.0
40.0
20.0
0
105.3
94.0
50.8
38.1
49.3
44.9
39.6
35.7
(Billions of yen)
18/3
19/3
20/3
21/3
22/3
5
4
3
2
1
0
3.4
2.0
2.2
2.9
3.0
(%)
18/3
19/3
20/3
21/3
22/3
200
150
100
50
0
167
137
144
145
144
(%)
18/3
19/3
20/3
21/3
22/3
44
70
50
60
40
30
20
10
60
40
20
0
0
50
50
30
63
30.9
45.3
59.0
24.7
27.8 
(Yen)
Total assets
Net assets
DE ratio
Net cash provided  
by operating activities
Net cash used in 
investing activities
Free cash flow
Capital expenditures
Depreciation and amortization
Dividend per share
Payout ratio
Note:	Indexed to FY2013 = 100

91
NGK REPORT 2022
11-Year Key Financial and Non-Financial Data
Financial Indicators
Non-Financial Indicators
2012/3
2013/3
2014/3
2015/3
Net sales
248,948
252,789
308,671
378,665
Cost of sales
172,456
178,052
208,052
254,386
Selling, general, and administrative expenses
49,986
54,041
56,366
62,700
Operating income
26,504
20,695
44,252
61,577
Net income attributable to owners of the parent
(35,351)
11,422
27,045
41,504
Capital expenditures
28,839
31,216
28,434
30,366
Research and development expenses
11,428
11,315
12,060
13,942
Net cash provided by operating activities
13,850
3,681
32,647
73,002
Net cash used in investing activities
(45,438)
(582)
(21,185)
(39,495)
Net cash provided by financing activities
56,608
12,448
2,026
(26,000)
Total assets
523,322
563,030
614,219
702,234
Interest-bearing debt
131,436
155,816
167,295
156,203
Net assets
264,381
303,073
344,453
404,001
Profit per share (yen)
(108.27)
34.98
82.82
127.11
Cash dividends per share (yen)
20
20
22
28
Ratio dividends to net worth (%)
—
57.2
26.6
22.0
Return on equity (ROE) (%)
(12.6)
4.2
8.6
11.4
Equity ratio (%)
48.5
52.0
54.3
55.8
Price-earnings ratio (PER)
—
29.0
26.0
20.2
Price-book value ratio (PBR)
1.5
1.1
2.1
2.1
Closing stock (yen)
1,181
1,013
2,150
2,565
Number of employees, end of year (persons)
12,372
13,159
13,210
16,217
2012/3
2013/3
2014/3
2015/3
GHG emissions (Scope 1: Energy-origin CO2)  
(10,000 metric tons, NGK Group)
27.5
29.6
30.2
29.0
GHG emissions (Scope 2: Energy-origin CO2)  
(10,000 metric tons, NGK Group)
31.7
36.7
43.0
39.4
GHG emissions (Scope 3)  
(10,000 metric tons, non-consolidated upstream )
—
—
—
—
Total water usage (10,000 m3, NGK Group)
305
327.3
318.2
276
VOC emissions (metric tons, NGK Group)
5.7
4.8
5.3
6.3
PRTR substance emissions (metric tons, NGK Group)
17.3
14.8
14.3
15.4
Total water discharge (10,000 m3, NGK Group)
172
215
223
196
Waste emissions (10,000 metric tons, NGK Group)
3.6
3.9
4.2
5.7
Number of employees (persons, non-consolidated)
3,351
3,426
3,531
3,569
Employee breakdown (female) (%, non-consolidated)
13.1
13.4
13.3
12.9
Percentage of women among managers (%, non-consolidated)
1.1
1.0
1.5
1.8
Percentage of women among managers  
(%, overseas NGK Group companies)
—
—
—
—
Number/percentage of disabled employees
(persons/%, non-consolidated)
43 (1.51)
49 (1.91)
53 (2.07)
56 (2.23)
Lost time incident rate (non-consolidated)*2
0.14
0.27
0.42
0.00
Social contribution expenditure  
(100 million yen, non-consolidated)
—
3.46
3.48
3.31
Number of directors (persons, non-consolidated)
13
11
12
12
Number of outside directors (persons, non-consolidated)
2
2
2
2
Total compensation of directors (million yen, non-consolidated)
643
668
624
581
Number of patents held (Japan) (non-consolidated)
2,303
2,454
2,685
2,719
Number of patents held (overseas) (non-consolidated)
3,981
4,087
3,990
3,911
Note: The values for Scope 1 and Scope 2 (CO2 emissions from energy sources) were calculated by retroactively changing the emission factor for electricity (a factor that converts the 
amount of electricity used into CO2) from a conventional fixed value to the actual value of electricity companies for each fiscal year.

92
NGK REPORT 2022
NGK Group Corporate Data
2016/3
2017/3
2018/3
2019/3
2020/3
2021/3
2022/3
435,797
401,266
451,125
463,504
441,956
452,043
510,439
289,266
272,434
312,107
323,224
313,458
329,061
347,748
65,633
65,619
68,991
75,574
73,496
72,158
79,163
80,898
63,212
70,026
64,705
55,000
50,823
83,527
53,316
36,379
45,814
35,506
27,135
38,496
70,851
45,437
60,101
71,713
105,336
93,997
50,831
38,130
17,410
18,653
21,100
23,271
22,928
22,448
23,551
59,445
80,172
50,554
61,224
53,200
85,641
94,831
(47,772)
(56,452)
(49,413)
(109,743)
(60,830)
(51,724)
(46,291)
(373)
(13,013)
22,546
3,564
(18,796)
12,250
(45,263)
711,897
759,434
826,243
863,636
833,085
908,967
982,833
163,973
174,150
211,573
229,423
234,400
264,244
252,350
417,972
427,593
472,863
489,245
469,118
517,892
589,594
163.28
112.71
142.42
110.35
84.73
121.61
226.56
38
40
44
50
50
30
63
23.3
35.5
30.9
45.3
59.0
24.7
27.8
13.3
8.8
10.4
7.6
5.8
7.9
12.9
57.1
54.9
55.8
55.3
55.0
56.3
59.3
12.7
22.4
12.9
14.6
16.7
16.6
7.7
1.7
1.9
1.3
1.1
1.0
1.3
0.9
2,079
2,520
1,834
1,608
1,417
2,024
1,753
16,657
17,517
18,783
20,115
20,000
19,695
20,099
2016/3
2017/3
2018/3
2019/3
2020/3
2021/3
2022/3
31.1
31.7
32.0
32.3
30.9
26.4
29.0
44.9
48.7
52
54.5
56.4
49.2
32.5
—
—
87.7
104.7
97.7
89.3
122.6
285
409
432
453
433
378
434
6.8
155.4
145.3
145.2
68.4
82.9
77.0
14.0
163.1
154.2
127.5
76.3
89.4
83.5
197
279
287
281
314
253
270
5.9
5.9
5.9
5.8
5.4
4.6
5.4
3,700
3,937
4,142
4,119
4,224
4,316
4,382
12.6
12.7
12.5
12.6
12.8
13.0
12.9
1.8
1.9
2.0
2.2
2.9
3.0
3.4
16.6
15.3
21.0
16.0
20.2
22.7
23.1
56 (2.18)
55 (2.03)
57 (1.90)
62 (1.92)
135 (2.20)
145 (2.35)
155 (2.46)
0.29
0.34
0.11
0.40
0.00
0.10
0.19
3.46
3.15
3.00
3.02
2.73
2.96
5.33
12
13
12
12
13
11
9
2
2
3
3
3
3
3
723
803
799
698
660
715
820
2,907
3,038
3,191
3,352
3,513
3,521
3,374
4,042
4,134
4,186
4,346
4,485
4,452
4,444
*1 Includes offsets from carbon neutral LNG use from FY2021 onward
*2 Aggregate for calendar years
*3 344.9 for consolidated upstream and downstream
(Millions of yen)
*1
*3

93
NGK REPORT 2022
NGK Group History
1919
NGK Insulators Ltd. was established as a 
spin-off of Noritake’s Insulator Division.
1929
1,000 kV-class high voltage insulator testing 
facilities were completed.
1931
Started manufacturing and marketing of sulfuric 
acid corrosion-resistant apparatus for the 
chemical industry.
1935
Suspension insulators exported to India.
1942
Construction of Chita Plant, located in 
Handa, Aichi Prefecture, was completed.
1958
Began manufacturing and marketing of 
beryllium copper products.
1962
Construction of Komaki Plant, located in 
Komaki, Aichi Prefecture, was completed.
1963
Construction of High Voltage Laboratory was 
completed.
1965
NGK-Locke, Inc. (the former NGK Insulators 
of America, Ltd.) was established in the 
U.S.A.
Inaugural managers
Acid-proof pump
HONEYCERAM
High-voltage insulator
Beryllium-copper master alloy
Ceramics for  
semiconductor manufacturing equipment
1970s to 1990s
Until 1969 since  
establishment
1971
Manufacturing and marketing of translucent 
alumina ceramics HICERAM begins.
1976
Began manufacturing and marketing of 
HONEYCERAM®, honeycomb catalyst 
substrates for controlling automobile 
emissions.
1978
Distributed a low-level radioactive waste 
incineration system to Tsuruga Power Station 
of the Japan Atomic Power Company.
1981
Developed a new manufacturing technology 
for ferrite used in magnetic heads.
1987
Nastech Corp. was established in Japan 
jointly with BBC (now ABB), based in the 
former West Germany, initiating research for 
NAS® batteries.
1988
Accumulated production of suspension 
insulators reached 150 million units.
1989
Production of diesel particulate filters begins.
1990
Distributed a high-pressure compaction 
system for treatment of non-combustible 
solid waste to Fukushima Daiichi Nuclear 
Power Station of the Tokyo Electric Power 
Company.
1991
Capital participation in Soshin Electric Co., Ltd.
1992
Began testing of a prototype of NAS battery for 
commercial use in an actual transmission 
system at Kawasaki Substation of the Tokyo 
Electric Power Company.
1994
An environmental inspection system was 
introduced.
1995
Delivered the world's largest gas bushings for 
the UHV transmission (11.5 m in overall length) 
to the Tokyo Electric Power Company’s 
Shinharuna Substation.
1996
∙ Mass production of ceramics for semiconduc-
tor production devices begins.
∙ Development of vehicle exhaust gas NOx 
sensors begins.
1998
∙ NGK Foundation for International Students 
was established.
∙ Production of piezoelectric micro-actuators for 
inkjet printers begins.
1999
NGK International House (a residence for 
international students) was completed.

94
NGK REPORT 2022
NGK Group Corporate Data
2002
∙ Achieved the management rights to FM 
Industries, a US based manufacturer of 
modules for semiconductor manufacturing 
equipment.
∙ Launched home-use water purifiers “C1”.
2003
Mass production of NAS battery system 
begins.
2004
Received the 50th Okochi Memorial Grand 
Production Prize for the development and 
practical application of NAS batteries.
2005
∙ Reduced the number of directors and 
introduced a corporate of  officer system.
∙ Developed piezoelectric micro-actuators for 
hard disk drives (HDDs).
2006
Developed world’s largest subnano-ceramic 
membranes.
2008
∙ Commercialized the world’s  first in-vehicle 
high-precision NOx sensors.
∙ Merged the environmental equipment 
business with the water environment-related 
business unit of Fuji Electric Co., Ltd. to 
establish METAWATER Co., Ltd.
2009
∙ Accepted orders for NAS Batteries from 
Abu Dhabi Water and Electricity Authority 
(ADWEA) in UAE, and from MTA New York 
City Transit for bus depot.
∙ The   first mass-produced version of 
HONEYCERAM was registered with the 
National Museum of Nature and Science as 
an Essential Historical Material for Science 
and Technology.
2011
Launched “NGK Innovation Laboratory” in 
Nagoya Institute of Technology for strategic 
task force R&D joint project.
2012
∙ FM Industries acquired semiconductor 
manufacturing equipment-related business 
from a U.S. industrial gas manufacturer.
∙ Developed GaN wafer for ultra-high 
brightness LEDs.
∙ Developed drying equipment system 
applying variable wavelength technology.
∙ Production of gasoline particulate  filters 
begins.
2013
Developed ultra-high strength and highly 
conductive copper-zirconium alloy wire.
2014
Commercialization of bounded wafers.
2015
Acquired NIPPON STEEL & SUMIKIN 
Electronics Devices Inc. from NIPPON STEEL 
& SUMIMOTO METAL Corporation (Currently 
NGK ELECTRONICS DEVICES, INC.)
2016
∙ Started production of gasoline particulate 
filters (GPF) in Poland.
∙ Began manufacturing of copper-nickel-tin 
alloy.
2018
Gallium nitride (GaN) wafers and microlens for 
ultraviolet LEDs are commercialized.
2019
∙ Revised the NGK Group Philosophy.
∙ Lithium-ion rechargeable batteries, 
“EnerCera®” is commercialized.
∙ 100th anniversary
2021
∙ NGK Group Vision is formulated.
∙ NGK Group Environmental Vision is 
formulated.
∙ Established Ena Electric Power, a new 
regional electric power company
∙ Sold Soshin Electric Co., Ltd.
2022
Established Abashiri Electric Power, a new 
regional electric power company
NAS batteries
In-vehicle high-precision NOx sensors
Diesel particulate filters (DPF)
Gasoline particulate filters (GPF)
Gallium nitride (GaN) wafers
Lithium-ion rechargeable batteries, 
“EnerCera”
2000s–

95
NGK REPORT 2022
Corporate Outline/Stock Information (As of March 31, 2022)
Corporate Outline
Company name
NGK Insulators, Ltd.
Address
2-56 Suda-cho, Mizuho, 
Nagoya 467-8530, Japan 
Telephone + (81) 52-872-7181
Established
May 5, 1919
Paid-in capital
69.8 billion yen
Net sales
510.4 billion yen
(consolidated, for FY2021)
Consolidated 
subsidiaries
45
Equity-method 
affiliates
2
Employees
NGK  4,382
Consolidated  20,099
Stock exchange 
code
5333
Stock Information
Total number of shares authorized
735,030,000 shares
Total number of shares issued
317,211,996 shares
(Including 5,570,919 shares of  
treasury stock)
Total number of shareholders
50,996 persons
Listed stock exchanges
Tokyo Stock Exchange,  
Nagoya Stock Exchange
Major Shareholders
Names of shareholders
Number of  
shares held 
(1,000 shares)
Ratio to total 
(%)
The Master Trust Bank of Japan, Ltd. (Trust account)
57,566
18.47
Custody Bank of Japan, Ltd. (Trust account)
21,709
6.96
Meiji Yasuda Life Insurance Company
21,695
6.96
The Dai-ichi Life Insurance Company, Limited
21,457
6.88
MUFG Bank, Ltd.
7,204
2.31
National Mutual Insurance Federation of  
Agricultural Cooperatives
7,029
2.25
Aioi Nissay Dowa Insurance Co., Ltd.
4,387
1.40
State Street Bank West Client – Treaty 505234
4,325
1.38
Custody Bank of Japan, Ltd. (Securities trust account)
3,383
1.08
JP Morgan Chase Bank 385781
3,310
1.06
(Note) The Company retains 5,570,919 shares of treasury stock, but those shares are excluded from the 
above list of major shareholders. Furthermore, the above shareholding ratio is calculated based on the 
number of shares after deducting the number of treasury shares from the total number of issued shares, 
rounded down to the nearest one-thousandth.
Distribution of Shares
Number of  
shareholders
50,996 persons
Number of shares
317,211  
thousand shares
Financial institutions
159 persons
(0.3%)
Financial  
institutions
176,432  
thousand shares
(55.6%)
Japanese corporations
16,250 thousand shares
(5.1%)
Foreign corporations  
and others
76,023 thousand shares
(24.0%)
Individuals  
and others
49,678 persons
(97.4%)
Japanese 
corporations
479 persons
(0.9%)
Individuals and others
48,506 thousand shares
(15.3%)
Foreign corporations  
and others
680 persons
(1.4%)

96
NGK REPORT 2022
NGK Group Corporate Data
NGK Group/Data by Area (As of March 31, 2022)
Data by Area
NGK Insulators
Head Office / Tokyo Main Office / Osaka Branch / Chita Site / Komaki Site / Ishikawa Plant / Sapporo Sales Office / Sendai Sales Office / 
Hokuriku Sales Office / Hiroshima Sales Office / Takamatsu Sales Office / Fukuoka Sales Office
JAPAN
ENERGY SUPPORT CORPORATION
KANSAI ENERGYS CORPORATION
KYUSHU ENERGYS CO., LTD.
HOKURIKU ENERGYS CORPORATION
ENERGYS SANGYO CORPORATION
AKECHI INSULATORS, LTD.
NGK OKHOTSK, LTD.
NGK ELECTRONICS DEVICES, INC.
NGK CERAMIC DEVICE CO., LTD.
NGK METEX CORPORATION
NGK FINE MOLDS, LTD.
NGK CHEMITECH, LTD.
NGK FILTECH, LTD.
NGK ADREC CO., LTD.
NGK KILNTECH CORPORATION
NGK LIFE CO., LTD.
NGK YU-SERVICE CO., LTD.
NGK LOGISTICS, LTD.
ENA ELECTRIC POWER Co., Ltd. 
ABASHIRI ELECTRIC POWER Co., Ltd.
Japan
Employees
7,355
Net sales
124.9 billion yen
America
Employees
3,364
Net sales
110.9 billion yen
Other
Employees
162
Net sales
10.7 billion yen
Europe
Employees
4,891
Net sales
108.8 billion yen
Asia
Employees
4,327
Net sales
155.1 billion yen
NORTH AND CENTRAL AMERICA
NGK-LOCKE, INC.
NGK CERAMICS USA, INC.
NGK AUTOMOTIVE CERAMICS USA, INC.
NGK METALS CORPORATION
FM INDUSTRIES, INC.
NGK ELECTRONICS USA, INC.
NGK INSULATORS OF CANADA, LTD.
NGK CERAMICS MEXICO, S. DE R.L. DE C.V.
EUROPE, AFRICA
NGK BERYLCO U.K. LTD.
NGK CERAMICS EUROPE S.A.
NGK EUROPE GMBH
NGK DEUTSCHE BERYLCO GMBH
NGK BERYLCO FRANCE
NGK CERAMICS POLSKA SP. Z O.O.
NGK CERAMICS SOUTH AFRICA (PTY) LTD.
ASIA, OCEANIA
NGK INSULATORS (CHINA) INVESTMENT CO., LTD.
NGK CERAMICS SUZHOU CO., LTD.
NGK TECHNOCERA SUZHOU CO., LTD.
NGK AUTOMOTIVE CERAMICS KOREA CO., LTD.
P.T. NGK CERAMICS INDONESIA
SIAM NGK TECHNOCERA CO., LTD.
NGK CERAMICS (THAILAND) CO., LTD.
NGK TECHNOLOGIES INDIA PVT. LTD.
NGK STANGER PTY LTD.
Group Companies

97
NGK REPORT 2022
Third-Party Opinion
Graduate School and Faculty of Safety Science, Kansai University
Professor, Ph. D. in Law (LL.D.)
Executive Director of Japan Society for Business Ethics
Senior Researcher of Business Ethics Research Center
Dr. Kazuhiko Takano
1. Recent changes in the business environment
Over the past year or two, the business environment has changed 
dramatically. First is the demand for action on the environment and 
human rights. At the 26th session of the Conference of the Parties to 
the United Nations Framework Convention on Climate Change in 
November 2021, we called on member nations to take ambitious 
measures. In accordance with the UN Guiding Principles on Business 
and Human Rights, in October 2020 Japan formulated the Action 
Plan on Business and Human Rights, through which it strongly 
demands efforts related to respecting human rights. Furthermore, in 
Japan, sustainable investment is expanding rapidly, and investment 
balances reached approximately 514 trillion yen* as of the end of 
March 2021. From the perspective of both complying with 
international standards and improving corporate value, there is a view 
that initiatives for the environment and human rights have become 
one of the most important management issues.
	
Second is the new demands related to corporate governance. In 
the revised Corporate Governance Code announced in June 2021, 
new additions were made regarding the functions of the board of 
directors, ensuring diversity among core human resources, and 
addressing sustainability issues.
	
In this opinion, I would like to examine this report by focusing on 
whether it is able to present a persuasive value creation process in 
addition to responding to these demands.
2. Commendable points of the NGK Report 2022
The NGK Group Vision: Road to 2050, formulated in April 2021, uses 
backcasting from the future society of 2050 and defines the social 
issues to which the NGK Group will contribute as carbon neutrality 
and a digital society. This constitutes the medium- and long-term 
vision for the NGK Group.
	
In particular, for the NGK Group, which accounts for about 40% 
of sales of ceramics for purifying automobile exhaust gas, how to 
transform its business structure in response to the shift to EVs in the 
automobile industry is an important management issue. The NGK 
Group is envisioning a third foundational period centered on its 
unique ceramic technologies. The content of the report is persuasive, 
as it presents a roadmap for value creation while concentrating 
research and development costs. Specifically, with regard to the 
realization of carbon neutrality, they are developing businesses 
involving storage batteries such as NAS batteries and zinc 
rechargeable batteries, and sub-nano ceramic membranes that can 
separate CO2 at the molecular level. For a digital society, they site 
businesses such as ultra-compact, ultra-thin lithium-ion rechargeable 
battery and high-performance wafers for high-speed, large-capacity 
communications.
	
The foundation to supports the realization of this value creation 
story is summarized from an ESG perspective. In particular, this year’s 
content on human rights is remarkable. Since the disclosure of the 
NGK Group Human Rights Policy in April 2021, it is apparent that the 
NGK Group is promoting human rights due diligence for domestic and 
overseas group companies. Furthermore, details on governance are a 
much more complete than before. The ratio of outside directors on the 
board of directors is one-third, and the company is also recommending 
the appointment of women and foreign directors. The company also 
frequently holds “Conference of Outside Directors and Outside Audit & 
Supervisory Board Members,” where outside officers exchange 
opinions, and the “Hearing convened by Audit & Supervisory Board 
Members and Outside Directors,” in which Audit & Supervisory Board 
Members and outside directors hear information from relevant parties 
within the company. These efforts demonstrate the company’s efforts 
to tap outside expertise. The company’s level of corporate governance 
is outstanding compared to other advanced companies.
	
Overall, this year’s report gives a strong impression of the 
feasibility of the medium- to long-term vision.
3. Expectations of further developments
For further development, I would like to raise the following issues. 
First, the company should further enhance efforts to promote respect 
for human rights. With the establishment of NGK Group’s Supply-
Chain CSR Guideline in 2010, we can see that efforts to respect 
human rights in the supply chain are progressing steadily, including 
visits to important suppliers and the use of fact-finding surveys. In the 
future, I hope that the company will conduct regular social audits not 
only for important suppliers but also for the entire supply chain and 
value chain, including indirect suppliers of raw materials overseas. 
This includes disclosing details of how cases of non-conformance 
cases are being handled.
	
Secondly, the company should enhance information related to 
corporate governance. This report carefully describes the expertise of 
the directors, but I think it would be even better to extracting risks 
that may materialize in the future based on the company’s value 
creation story and then link the expertise of the directors to those 
risks. This will lead to a sense of security that the board of directors 
can deal with risks that may arise during new business development.
4. Encouragement
It is no exaggeration to say that industry is entering a paradigm shift 
and faces issues such as carbon neutrality and DX. President 
Kobayashi said, “For the NGK Group, this is a tailwind for growth.” 
This is likely due to the superiority of the NGK Group, which has 
established its own ceramic technology. I would like to express my 
respect for the fact that the entire company is working together to 
proactively pursue reforms. I hope that the NGK Group will continue 
to develop further in line with its new medium- and long-term vision.
*Source: JSIF ”Sustainable Investment Survey in Japan 2021”

98
NGK REPORT 2022
NGK Group Corporate Data
External Evaluation
External Evaluation
In November 2021, we were listed to the Dow Jones Sustainability Asia Pacific Index, one of the leading ESG investment 
indexes on the Dow Jones Sustainability Indices for the sixth consecutive year.
	
In June 2022, we were selected to the FTSE4Good Index Series*1, which consists of companies that meet the ESG 
evaluation criteria set by FTSE Russell. 
	
We have also been selected for the FTSE Blossom Japan Index*2, the MSCI Japan ESG Select Leaders Index, and the 
MSCI Japan Empowering Women Index (WIN), which are managed by the Government Pension Investment Fund (GPIF).
	
We have also obtained various domestic certifications, such as the 2022 Certified Health and Productivity Management 
Organization (White 500) jointly promoted by the Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi.
THE INCLUSION OF NGK INSULATORS 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 INSULATORS 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.
*1:	Click here for details on the FTSE4Good  
	
Index Series:
	
https://www.ftserussell.com/products/indices/ftse4good  
*2:	Click here for details on the FTSE Blossom Japan Index:
	
https://www.ftserussell.com/products/indices/blossom-japan
NGK Group Corporate Data

NGK Group Integrated Report
NGK Report 2022
■ For more information:
2-56, Suda-cho, Mizuho, Nagoya 467-8530, Japan
NGK Insulators, Ltd.
ESG Management Department
E-mail: pr-ofﬁce@ngk.co.jp
Published in November 2022
NAS, HONEYCERAM and EnerCera are trademarks of NGK INSULATORS, LTD., registered in the U.S.