N G K  R E P O R T  2 0 2 1

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NGK Group Products with Big Potential
NGK Group Philosophy
Message from the Chairman
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15
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21
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25
27
29
33
Message from the President
NGK Group Vision: Road to 2050
NGK Group Environmental Vision
Towards Realization of the NGK Group Vision
Creating Value
NGK Group Research and Development
Competitive Strength
Overview of Business Results and Management Policies
Non-Financial Highlights
Vision and Value Creation 
CONTENTS
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51
54
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57
61
62
63
64
ESG Management
Corporate Governance
Compliance
Security
Risk Management
Environmental
Human Rights
Supply Chain
Safe and Comfortable Workplaces
Human Resource Development
NGK Group’s ESG
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69
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75
At a Glance
Ceramic Products Business
Process Technology Business
Electronics Business
Energy Infrastructure Business
Business Overview
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Financial and Non-Financial Data
History of the NGK Group
Corporate Outline / Stock Information
Third-Party Opinion
NGK Group Website
NGK Group
Data by Area
External Evaluation / Editorial Policy
Corporate Data

NGK Group will contribute to carbon neutrality and digital society 
with our unique ceramic technologies.
NGK Group Vision: Road to 2050

Under the NGK Group Vision, we are aiming to have carbon neutrality and digital society-related 
products account for 80% or more of our sales by 2050. 
The following products will be some of the first to help us achieve this. 
NGK Group products with big potential
Contributing to the 
realization of CN/DS
Gallium nitride (GaN) wafers
Our original crystal growth technology has realized low 
defect density across the entire GaN wafer surface. 
Enabling unprecedented ultra-bright laser diodes and 
high-efficiency power devices, these devices can be 
used as light sources for projectors, inverters for electric 
vehicles, and other applications.
Piezoelectric micro-actuators 
for hard disk drives (HDDs)
Indispensable for precise control of HDDs’ magnetic 
heads, these ultra-compact actuators are widely used in 
data centers around the world as key devices in 
achieving both higher capacity and higher reliability of 
HDDs.
03

Bonded wafers 
Bonded wafers are substrates for electronic devices 
developed by proprietary bonding technologies and 
ultra-high-precision wafer polishing technologies that 
have been cultivated in the ceramics business. 
Combining different materials enables bonded wafers to 
deliver performance and functionality that cannot be 
achieved with wafers made from a single material.
Zinc rechargeable batteries
These batteries use zinc, which is inexpensive and offers 
high energy density. Zinc normally causes 
short-circuiting during charging when used in 
rechargeable batteries, but NGK has solved this problem 
and developed a zinc rechargeable battery by utilizing its 
proprietary hydroxide ion conducting ceramic separator. 
Highly safe, this zinc rechargeable battery is an optimal 
storage solution for indoor installations.
Subnano-ceramic membranes
We have developed a variety of subnano-ceramic 
membranes, which are able to separate specific 
molecules from mixed liquids or gases. These new 
ceramic filters make possible innovative separation 
processes that have the potential to save energy and 
reduce costs.
Lithium-ion rechargeable 
batteries, “EnerCera®” 
The EnerCera series is a line of compact, thin, high 
energy density lithium-ion (Li) rechargeable batteries 
utilizing NGK’s proprietary crystal oriented ceramic plate 
as electrodes. One of the particular features of these 
batteries is their high heat resistance. The series is 
offered in two types: “EnerCera Pouch,” which can be 
embedded in IC cards using hot lamination; and 
“EnerCera Coin,” the world’s first Li-ion battery that can 
be reflow-soldered to circuit boards and is capable of 
high current discharge. EnerCera batteries have been 
lauded as revolutionary storage devices.
04

Visit the “About NGK” section of our website to read the NGK Group Philosophy.
https://www.ngk-insulators.com/en/info/governance/
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. 
05

Road to 2050: Launch of the New NGK Group
Message from the Chairman
On April 1, 2021, Shigeru Kobayashi took over as president 
of NGK Insulators, Ltd., and I assumed the role of 
chairman. During my tenure as president, beginning in 
2014, we were able to help NGK Group develop as a truly 
global company by bringing innovation to old ways of doing 
business and by reforming our corporate culture to create a 
workplace conducive to free and open discussion. All of 
this represented the start of a new chapter for NGK, and I 
felt that the time was right to pass the baton on to a 
successor. We marked the occasion of NGK’s 100th 
anniversary in 2019 by laying out our corporate mission in a 
revised NGK Group Philosophy. We then spent a year 
formulating the NGK Group Vision to serve as a roadmap 
for realizing that mission by 2050. It is now up to our new 
President Kobayashi to start us on that journey.
 
Selection of the new president was deliberated on by 
the Nomination and Compensation Advisory Committee, 
comprised of outside directors/auditors, the president and 
executive vice presidents, and the selected candidate was 
then decided on by the Board of Directors. A group of 
candidates, all with a wealth of managerial experience, was 
put forward, and Shigeru Kobayashi chosen from among 
them as the top candidate in light of his outstanding 
qualifications, capacity for identifying issues, leadership 
skills, interpersonal skills and many other qualities as a 
senior manager. I look forward to the significant 
contributions he will make, as the leader of the NGK Group, 
to the growth and development of our future business.
 
During my tenure as president, my first priority was to 
strengthen the functions of the Head Office. 
Communications with business divisions and departments 
has improved, and, given how highly the Head Office is 
now regarded in terms of competency and effectiveness, 
I feel that this represents a significant achievement. The 
accomplishments which I remember best came from 
helping to resolve anti-trust law violation, nonconformity in 
testing procedure of insulators and related products and 
other issues that must never occur again. I feel that was we 
achieved in these areas helped to ensure that we were on 
track for the future as we marked the 100th anniversary of 
our founding. I also look to you, our stakeholders, to help 
us in building the next 100 years of NGK.
 
As Chairman, I am eager to support our new President 
Kobayashi and to contribute to the discussions we will 
have about major policies and other issues. I leave the 
executive administration of NGK to its president and other 
executive officers and turn my attention to cultivating the 
Board of Directors as a committee body for in-depth 
discussion of NGK’s medium- to long-term management 
strategy and other important matters. My attention is also 
directed towards facilitating activities which further the 
NGK Group’s financial and business interests, its 
contributions to society, among other endeavors for which 
your continued support is greatly appreciated. 
Chairman
06

Vision and Value Creation
The NGK Group’s unique ceramic 
technologies have been bringing society 
revolutionary products for over a century. We 
will continue to provide the world with new 
value through ever more amazing products.

An era of transformation has arrived for the NGK Group. The needs and expectations of society are 
changing fast. As a corporate group built on pursuing solutions to social issues, we must change too. 
Guided by the NGK Group Vision announced in April 2021, and equipped with our unique ceramic 
technologies, the NGK Group is embarking on a journey of new growth.
President
Message from the President
Contributing to carbon neutrality 
and a digital society under the 
NGK Group Vision
In December 2020, Chairman Taku Oshima—who was then 
President and Chair of the Nomination and Compensation 
Advisory Committee—offered me the position of President. 
I accepted right then and there. I was keen to continue the 
work of improving our company through the reforms that I 
had become familiar with during the seven years I worked 
alongside Chairman Oshima during his tenure as President.
 
Prior to my appointment, my job was to facilitate 
business rebuilding as the Group Executive of the Energy 
Infrastructure Business Group. I never imagined the 
position of President would be offered to me.
 
I joined NGK in 1983. I had always dreamed of working 
outside Japan, and the chance to be posted overseas was 
a big attraction for me.
 
My first role in the company was in insulator sales. After 
eight years, I received my first overseas posting—to 
Montreal, Canada. This was followed by postings to 
Indonesia, the United States, and China. In total, I spent 
nine years working abroad. Even when based in Japan, I’ve 
spent at least 120 days out of every year overseas on 
business trips. All this experience has taught me that, while 
cultures may differ, trust and reliability are universally 
important to business sustainability.
Inaugural resolutions
Never lose an enterprising spirit
09

10

Insulators
Gallium nitride (GaN) wafers
Subnano-ceramic membranes
NAS® batteries
Particulate matter (PM) removal filters
Lithium-ion rechargeable batteries, “EnerCera®”
Envisioning SDGs from 100 years ago
https://www.ngk-insulators.com/en/sdgs/
Reference URL
Message from the President
Upon having been appointed President, I set four 
resolutions.
 
The first resolution is to make good on the more than 
250 billion yen in investment that we have made over the 
past three years. This investment—which was primarily 
focused on automotive-related business and 
semiconductor manufacturing equipment-related 
products—ensures that we have enough production 
capacity to meet future demand. It is my responsibility to 
make sure that this translates into greater profits.
 
The second resolution is to create new businesses and 
new products that will sustain the NGK Group into the 
future. In line with the NGK Group Vision, which will be 
described later, we will focus on new products in the two 
fields of carbon neutrality and the digital society.
 
The third resolution is to pursue globalization. Japan, 
where the NGK Head Office is located, accounts for just 
28% of total NGK Group sales. We have a diverse array of 
customers all around the world. We also have an 
increasingly diverse workforce spread across business 
sites in 20 different countries. I will engage with our 
customers and employees around the world to facilitate 
greater globalization of the NGK Group. In addition, the 
NGK Group will provide a work environment where all 
employees, regardless of nationality, have opportunities for 
advancement on the global stage.
 
The fourth resolution is to grow the NGK Group as a 
company that all employees are proud to work for and that 
all stakeholders can trust. To this end, we will create a 
pleasant work environment characterized by free and open 
discussion, where employees are empowered to tackle 
challenges and are stimulated creatively.
NGK Group Vision
Growing carbon neutrality and digital society-related business 
into 80% of all sales by 2050
In April 2021, the NGK Group released its 2050 vision in the 
form of the NGK Group Vision: Road to 2050. This is the first 
public announcement of specific long-term targets that the 
Group has made since the K Plan 21 was released in 1989.
 
The discussions that led to the formulation of this 
medium-to-long-term vision began immediately after the 
revised NGK Group Philosophy was released two years 
ago—at the time of the company’s 100th anniversary. 
These discussions were centered on the four areas of 
energy, mobility, ICT and power devices, and industry. They 
explored such questions as what society will be like in 
2050, what kinds of issues society will face, and what the 
NGK Group can do to help address those issues. Based on 
this, we came up with an answer to the fundamental 
question of what we want to be as a company. Our answer, 
which underlies the NGK Group Vision, was: ‘A company 
that contributes to carbon neutrality and the digital society 
with our unique ceramic technologies.’ The discussions 
involved top management as well as a diverse 
cross-section of employees.
From company foundation to the present, offering value 
to society through SDG ideas
11

NGK came into being 100 years ago in response to the 
challenge of spreading electricity throughout Japan. Since 
then, our products and technologies have continued to 
address society-wide issues such as air pollution and 
increasing digitization. Examples of our technologies 
include ceramics for purifying automobile exhaust and 
ceramics for semiconductor manufacturing equipment.
Central to all challenges we have undertaken is the unique 
ceramic technologies that we have been refining for a 
century. Now we are working to leverage our three 
strengths in materials, processes, and mass production to 
enable the NGK Group to deliver new original products and 
create new businesses in the two areas of carbon neutrality 
and digital society.
 
We see a competitive carbon neutrality market is 
beginning to emerge around the world. The NGK Group 
already has an established track record of research into 
relevant technologies, like storage batteries, 
subnano-ceramic membranes for CO2 separation, and solid 
oxide electrolysis cells (SOEC). We see these technologies 
being used to make products that will drive new growth for 
the Group. In the future, we aim to establish a carbon cycle 
that uses CO2 collected through subnano-ceramic 
membranes—along with renewable energy—to synthesize 
hydrogen and carbon monoxide via SOEC and then 
process it into fuel and chemical products using 
honeycomb structural reactors.
 
In digital society-related markets, the NGK Group 
already has competitive strengths. Semiconductor 
manufacturing equipment incorporates ceramic 
components, which is an area where the NGK Group and 
other Japanese corporate groups are strong. We will 
capitalize on these advantages to continue meeting the 
needs of customers, while also developing and offering 
new products.
 
Our plan is to develop this trend such that 50% of total 
sales by 2030—and 80% of total sales by 2050—come 
from products related to carbon neutrality and digital 
society. Achieving this will require strong, new products 
that will be the cornerstone of the NGK Group. Therefore, 
over the next 10 years, we will invest 300 billion yen into 
research and development, with 80% of that being 
allocated to research and development related to carbon 
neutrality and the digital society.
 
Demand for ceramics used in purifying automobile
exhaust, one of our current core businesses, is not going to 
drop off rapidly. Moving forward, we will use the profitability 
of this business to fund new product and business 
development.
 
In terms of concrete policies to realize this new vision, 
we have formulated Five Transformations. These are ESG 
(Environmental, Social, and Governance) Management, 
Profitability Improvement, Research and Development, 
Commercialization, and Digital Transformation (DX). We 
must strive for a major transformation, particularly 
regarding the speed with which we go from Research and 
Development to Commercialization. All processes involved 
between development and commercialization require 
transformation. Along with working on selection and 
concentration, we will work to improve the efficiency of 
materials development through the application of DX—for 
example, using materials informatics*.
 
In addition, we recognize the need for greater emphasis 
on not only tangibles but also intangibles—that is, on 
providing services and solutions as well as products. One 
example of this is shifting from our traditional approach of 
selling products that reduce CO2 to engaging in businesses 
capable of reducing CO2 emissions. We will provide those 
customers who want more than physical products with 
services whose functionality is derived from our unique 
ceramic technologies. This represents one of the innovative 
schemes that we must put into action.
 
The NGK Group is currently undergoing its third 
foundational period. We will work together as one with all 
stakeholders, both inside and outside the Group, to bring 
about the NGK Group Vision.
* A method for material development using information processing technologies such as 
big data, AI, and machine learning.
Within the NGK Group Vision, ESG management plays a 
central role in Group management. However, in my view, it 
is the ‘E’ (Environmental) that is most fundamental to the 
success of ESG management. Thus, when we formulated 
the NGK Group Vision, we also formulated the NGK Group 
Environmental Vision. This ambitious vision seeks, among 
other things, a reduction in our CO2 emissions by fiscal 
2030 to levels 50% below those of fiscal 2013. Eventually, 
our goal is to achieve net zero CO2 emissions in our own 
activities by 2050.
 
Although one of the corporate strengths of the NGK 
Group is its environmentally friendly products, the firing 
process used to produce ceramics requires large amounts 
of electricity and fuel. CO2 emissions are an unavoidable 
byproduct. Therefore, we will reduce our CO2 emissions 
while pursuing technological innovation and collaborating 
with society.
 
The capital investment associated with this needs to 
begin now if we want to meet our targets for fiscal 2030. 
That is why I am heading up a Carbon Neutral Project, 
which will accelerate a changeover to alternative fuel 
sources, such as hydrogen and ammonia.
ESG in the NGK Group
Newly formulated NGK Group Environmental Vision
12

Launch of the CN (Carbon Neutral) Project
Leader  President Kobayashi
Subleader, Corporate R&D Group  Executive Vice President Niwa
Administrative Office
ESG Management Department
*1 Carbon Capture and Utilization 
*2 Carbon Capture and Storage
*3 Internal Carbon Pricing
Carbon Neutral Business Promotion Project
Net Zero CO2 Emissions Project
Message from the President
As for the ‘S’ (Social) in ESG, in April we formulated the 
NGK Group Human Rights Policy. To ensure that the human 
rights of all people involved in the NGK Group are not 
violated, we will comply with international standards of 
human rights and provide opportunities for everyone to 
play an active role, regardless of their gender or nationality. 
 
And as for the ‘G’ (Governance), a resolution was 
passed at the General Meeting of Shareholders in June 
2021 that increased the ratio of independent outside 
directors on the Board of Directors to one-third (three out of 
nine). This also represents an opportunity to further 
separate our supervisory and executive functions.
 
We are also working to ensure that assignments to 
senior management positions are carried out regardless of 
nationality or gender. We have appointed an American 
executive officer for 2021, and we also appointed a female 
executive officer for 2020.
 
A company that loses the trust of society cannot 
survive. Compliance is the top operational priority. To boost 
our operations to world-class standards across the board, 
we introduced our NGK Group Basic Guidelines for 
Compliance Activities. Based on the shared values and 
understanding of the NGK Group presented in these 
guidelines, we will undertake compliance activities that 
always conform to the international standards.
Results for the fiscal year ended March 2021
Securing increased revenue from a recovery in automotive and 
semiconductor-related business
Despite the impact of the COVID-19 pandemic, the fiscal 
year ended March 2021 saw a quick rebound in automobile 
sales, centering on China, and strong growth in demand for 
semiconductor manufacturing equipment. As a result, sales 
revenue increased and year-on-year operating income 
declined by only 8%. We were able to continue supplying 
our products, thanks to stringent infection-control 
measures taken by employees at our production facilities in 
and outside Japan.
 
In the fiscal year ending March 2022, we anticipate a 
continuation of this automotive and semiconductor-related 
growth, as well as greater activity associated with new 
products. Regarding our EnerCera® lithium-ion 
rechargeable batteries, we are already working with more 
than 300 other companies and expect to see significant 
growth once the business model is established. As for our 
zinc rechargeable batteries, this fiscal year we plan to 
continue demonstration followed by commercialization. 
And from next fiscal year, we plan to start selling zinc 
batteries for specific applications to a limited number of 
customers. Soon we hope to see a successful conclusion 
to the demonstration testing of our subnano-ceramic 
membranes, which has been taking place in Texas, U.S. 
Manages business expansion, new product 
development promotional marketing, business 
strategies, and new product development in the 
CCU*1/CCS*2 market
Manages energy saving, renewable energy use, fuel 
changeover, and ICP*3 to achieve carbon neutrality in 
business operations by 2050
13

Towards the future
Converting our business structure in anticipation of a Third Foundation
In conjunction with the formulation of the NGK Group 
Vision, an organizational restructuring was undertaken this 
past April. Of particular note is the establishment of the 
ESG Management Department, which brings together 
various ESG-related functions that had previously been 
divided among several different departments. This 
department will implement ESG-related activities across 
the entire Group, while also proactively communicating 
ESG-related efforts. Also, a Digital Transformation and 
Innovation Department was established, which brings 
together digital-related IT departments and others, to 
facilitate DX. These two departments are responsible for 
handling the question of how employees’ jobs will change. 
We are working to cultivate leaders who will provide 
support for this change process.
 
To bring about the NGK Group Vision, every employee 
must be motivated to tackle the challenges of 
transformation without fear of failure. We must all take part 
in free and open discussion. The NGK Group’s corporate 
culture is sober, technologically oriented, and at times 
somewhat risk-averse. But we must remember that trial 
and error is the only way to break new ground. We come up 
with a hypothesis; we test it; and, if it is wrong, we redo it. 
Nothing is ever perfect right from the start. We are building 
an ambitious company that does not fear failure.
And it is in this context—and in line with our Group slogan 
of ‘Surprising Ceramics.’—that we are pursuing the Five　
Transformations and converting our business structure in 
anticipation of our Third Foundation driven by NGK’s 
unique ceramic technologies. Expect to see great things in 
the NGK Group’s future.
14

The NGK Group Vision announced in April 2021 presents a picture of ‘what we want to be’ by 
2050 along with the path we will take to get there.
 
For NGK, 2021 is the year of our ‘Third Foundation’ as we pursue the self-transformation 
that will enable us to realize our vision.
Pursuing the ‘5 Transformations’ 
that will make us 
‘what we want to be’ in 30 years
NGK Group Vision: Road to 2050
What we want to be
What we must do
Convert our business 
structure through 
5 transformations
A company to contribute to 
carbon neutrality and digital 
society with our unique 
ceramic technologies
15
NGK Group Vision: Road to 2050

Prospects for FY2025
Sales
Operating income
Net income
ROE
Dividend payout ratio 
Earnings per share (EPS)
600 billion yen
  90 billion yen
  60 billion yen
10%
30%
200 yen
Capital 
investment
376.6 billion yen
250 billion yen
Operating 
income
303.7 billion yen
400 billion yen
R&D
108.4 billion yen
130 billion yen
Free cash flow
+2.7 billion yen
2016
2021
2025
2030
2040
2050
Sales (total)
Sales (not for internal 
combustion engines)
For digital society
Others
For carbon neutrality
30%
50%
80%
Achieve 80% of sales from 
CN/DS
In expectation of carbon neutrality and digital society being our growth areas 
in the future, we are pursuing business transformations that will ensure 
products related to these areas account for 80% of our sales by 2050.
Input for
sustainable
growth
Retained funds
Return
Fiscal
2021–2025
total
Fiscal
2016–2020
total
For internal 
combustion engines
(HONEYCERAM®,
DPF, etc.)
Demand for internal 
combustion engine 
remained scenario
Zero scenario
Since our foundation in 1919, we have been promoting business 
diversification and global expansion in the aim of contributing to 
the resolution of social issues as the times change.
 
Currently, carbon neutrality in 2050 is recognized as a 
global challenge. In addition, it is certain that digitalization will 
progress rapidly in the future. In formulating our 
medium-to-long-term vision, we imagined a society of 2050. 
Then, we positioned carbon neutrality and the digital society as 
social issues we should tackle on.
 
Backcasting from there, we considered what we need to 
work on. We will continue to contribute to society with our 
unique ceramic technologies at our core. In order to do so, it is 
necessary to refine the technologies and raise the level. Next, 
to commercialize, it is essential to make a major change in 
management and the way we offer our products. Therefore, we 
have defined the current situation as the ‘Third Foundation’ and 
will work on self-transformation. We will contribute to society 
through our business by realizing what has previously been 
difficult with ceramic technologies at the core, and by working 
to the point where the key devices are implemented in society.
Backcasting from the envisioned society of 2050
+250 billion yen
Interest bearing 
liabilities
+100.3 billion yen
±0 billion yen
(Carbon Neutrality/Digital Society)
16

For the NGK Group, the following ‘5 Transformations’ 
represent ‘what we must do’ in order to become ‘what we want to be.’
E
S
G
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
Increase of earning power, 
creating a cycle for growth
● ROIC*3 / Analysis and improvement 
of profitability in each business
● Strengthening entire process chain
Achievement of ‘New Value 1000’
Reinforcement of societal 
implementation of our products
● 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%) 
● 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
*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 30)
ESG
Management
Profitability
Improvement
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 (environment), 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
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.
Commercialization
We will use the power of digital to accomplish the above business transformation.
Digital
Transformation (DX)
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.
Research &
Development
5 Transformations
Commercial-
ization 
Digital 
Transformation 
(DX)*2
Research & 
Development
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
17
NGK Group Vision: Road to 2050

New products
New value to be provided by NGK
For carbon neutrality, separation and capture of CO2 have been 
challenges. By using our ceramic membranes, it is possible to 
separate and capture specific gases with high precision and 
stability at the molecular level. Zinc rechargeable batteries 
using unique ceramic separators and water solutions as the 
electrolyte can be used safely indoors without the risk of fire 
accident.
 
Furthermore, as future products, we will develop the 
followings;
- SOEC, a solid oxide electrolysis cell that can produce fuels 
and raw materials with high efficiency from CO2 and water.
- Honeycomb structural reactors, which make reactions of 
synthetic fuel highly efficient by utilizing large-scale ceramics 
extrusion technology and separation membrane technology.
For Carbon Neutrality
Ceramic Technologies
CN
Carbon Neutrality
Subnano-ceramic membranes
Zinc rechargeable batteries
Material technologies
Mass-production technologies
Process technologies
Ceramic Technologies
DS
Digital Society
Material technologies
Mass-production technologies
Process technologies
Wafers
EnerCera®
Under harsh usage, realizing high- 
precision separation and capture of CO2
Large ceramic membranes that can 
separate CO2 at the molecular level with 
our unique hydrothermal synthesis 
technologies
High-safety and high-capacity storage 
batteries using our proprietary ceramic 
separators and water solutions as the 
electrolyte 
As there is no risk of fire accidents, they 
can be installed indoors and safely 
realize emergency power supply and 
renewable energy utilization
New products
We will contribute to agendas such as the expansion of the IoT 
and advanced security with our ultra-thin batteries. These 
batteries combine high-temperature endurance, high capacity, 
and low resistance properties that were previously difficult to 
realize. We commercialized them thanks to our crystal control 
technologies. They are expected to be utilized in weak power 
supplies and applied in smart cards and wearable devices. 
Meanwhile, our advanced wafers, which are manufactured 
using unique, ultra-high precision-polishing and bonding 
technologies, facilitate the precise and powerful filtering 
capabilities required of 5G and successor next-generation, 
high-speed communications networks. We will utilize our high 
precision technologies of ceramics for the development of 
future products. For example, mobility sensors that contribute 
to autonomous driving technology and also bonded wafers that 
realize miniaturization of devices and ultra-high-speed 
communications.
For Digital Society
• Realizing a maintenance free IoT
• More secure smart cards
• Wearable devices closer to our life
Highly heat-resistant, high-capacity, high 
power, fast-charging and ultra-small and 
thin batteries utilizing our unique 
crystal-orientation control
Highly functional bonded wafers realized 
by our unique precision-polishing and 
bonding technologies
Contribution to 5G and next-generation 
telecommunications networks with high 
speed and high data capacity
18

Formulation of the 
‘NGK Group Environmental Vision’
NGK Group Environmental Vision
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.
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.
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 is working to contribute to society through its business and has positioned ESG as a 
foundation of management.
In April 2021, we formulated the ‘NGK Group Environmental Vision’ along with the ‘NGK Group Vision.’
We stipulate our targets as contributing to carbon neutrality through products and services and 
achieving net zero CO2 emissions in our own activities by 2050.
Toward a recycling-
oriented society
19
NGK Group Environmental Vision

Strategy
1
Zinc rechargeable batteries
Subnano-ceramic membranes
for industrial exhaust gas
NAS®
batteries
Atmospheric CO2
adsorption module
Subnano-ceramic membranes
SOEC
(solid oxide electrolysis cells)
Honeycomb structural reactor for synthetic fuel
Strategy
2
Introduction of high-efficiency equipment (low-temperature waste heat recovery)
Develop and provide carbon neutrality-related products
DX for productivity increase and energy management
Strategy
4
Explore and implement new business models
Strategy
3
Application to production equipment
Technical development
Photovoltaic power
generation installation
100
50
0
2013
(Base year)
2025
2030
2040
2050
(Fiscal year)
CO2 emissions 
(10,000 metric tons)
2020
2025
550,000
metric tons
Net zero
2019
870,000
metric tons
2030
⬇50%
370,000
metric tons
2013
730,000
metric tons
In light of the NGK Group Environmental Vision’s call to realize 
net zero CO2 emissions in our own activities by 2050, we have 
formulated the Carbon Neutrality Strategic Roadmap in order 
to achieve our goals. We have set a milestone (mid-term goal) 
of reducing CO2 emissions 50% by fiscal 2030 (from their fiscal 
2013 levels), and, along with this, we are developing 
technology related to hydrogen and CCU/CCS (Carbon 
Capture and Utilization/Carbon Capture and Storage) that will 
help us to achieve our goals ahead of schedule.
Carbon Neutrality Strategic Roadmap to achieve net zero CO2 emissions
Accelerate global renewable energy 
and hydrogen/CCU/CCS infrastructure 
development with our technology to 
move toward net zero.
Development and 
provision of CN (carbon 
neutrality)-related 
products/services
CCU/CCS/hydrogen 
related and 
renewable-energy related
Top-down enhancement 
of energy-saving
Accelerate capital expenditures by 
introducing in-house carbon prices
Promotion of technical 
innovation
Fuel conversion to hydrogen, etc. 
and own verification/application 
of CCU/CCS
Expanded use of 
renewable energy
Own photovoltaic power generation 
installation utilizing NAS batteries/zinc 
rechargeable batteries and renewable 
energy procurement
20

This past April, the NGK Group, working in conjunction with 
local government and others, established Ena Electric Power 
Co., Ltd. as a new, regional power producer and supplier in 
Ena, Gifu Prefecture. We are not simply selling products, i.e., 
long-lasting, large-capacity NAS® storage batteries. Rather, we 
are providing a system for storing and discharging renewable 
energy according to supply and demand. By switching our 
focus to providing a solution that encompasses a local 
production for local consumption system and that facilitates 
greater regional energy resilience, we are generating new 
economic value.
The NGK Group Vision sets forth what we want to be in order 
to fulfill the stated mission of our Group Philosophy: Enriching 
Human Life by Adding New Value to Society. As Executive Vice 
President, I was involved in the formulation of this Group 
Vision, and share in the heartfelt conviction behind it that we 
must change, and we must do so now.
 
By formulating a new vision, we have identified the 
“mountains” that we must climb. These mountains are 
represented by two areas—carbon neutrality and digital 
society—where we can put our ceramic technology strengths 
to good use. What we need to do now is establish our climbing 
strategy and then set our Group in motion in implementing it.
 
This does not mean, however, that we cannot change 
mountains once we have started climbing. We are in an era of 
rapid change and uncertainty, one characterized by VUCA 
(volatility, uncertainty, complexity, and ambiguity). It may be 
that in five years’ time we will switch our focus towards a 
different mountain. What is important is that we get started 
climbing, that we take action, while also being willing to 
course-correct whenever circumstances require in the world. 
 
Up until now, the NGK Group has focused on insulators, 
automotive-related business, and other markets where change 
occurs at a relatively unhurried pace. However, the times now 
call for a greater sense of urgency and flexibility in adapting to 
change. If we continue at the same pace we have been going 
at, we will not be able to stay in business. Over the next 10 
years, we need to put in place a foundation that will allow us to 
achieve our goal of having 80% of Group sales come from 
carbon neutrality and digital society-related business by 2050. 
First and foremost, if we want to realize our vision, we will need 
to adopt a greater sense of urgency.
Introduction
Now is the time for change
Faster research and development is essential to fostering a 
greater sense of urgency in our business. It is assumed that 
ceramic research and development will take anywhere from 
four to five years to up to 10 or more years. However, I want us 
to focus on shortening it to one year, depending on the 
research theme. If we do not accelerate the development cycle, 
which includes everything from research and development up 
through release on the market, we will never be able to 
compete in the rapidly changing carbon neutrality and digital 
society-related markets.
 
In order to speed up the development cycle, we must first 
increase our development themes and speed up the rate of 
commercialization. We also need to be faster about 
ascertaining, selecting, and focusing in on promising themes. 
Achieving this will necessarily entail transformation of whole 
process from product development to commercialization. We 
will also make use of external resources, such as venture 
capital investment, to help in speeding up processes.
 
Besides this, in order to shorten the lead time from R&D to 
commercialization to market launch, our policy is to upgrade 
equipment and lines dedicated to trialing products consistently 
related to our carbon neutrality and digitalization efforts. We 
will develop prototypes concurrently with an eye to eventual 
mass production. I would like to use our existing plants for the 
mass production of new products. 
 
On the other hand, to truly increase the speed at which we 
develop business, all our employees must change their 
mindset. This doesn’t mean they should change to follow a 
vision. Rather, it means they should make a conscious effort to 
change themselves so that what they make and do will change 
as a consequence. 
Sense of urgency
A necessary change in mindset among all Group employees
From products to solutions
Pursuing business strategy innovation
Business strategy innovation 
and internal reform
21
Towards Realization of the NGK Group Vision

Renewable energy usage is not only connected with 
achieving net zero CO2 emissions from production facilities, it 
also presents opportunities for NGK to develop and sell 
innovative solutions for making renewable energy systems 
more end-user-friendly. We have already begun demonstration 
testing of subnano-ceramic membranes used for CO2 
separation. By having a proven achievement, we will be able to 
provide a system that can be used not only by gas and oil 
fields but also by chemical companies and others in the 
industrial sector.
 
We will develop a strategy that is not simply focused on the 
ceramic membranes alone but also on the CO2 capture 
equipment, systems, and even engineering. In carbon 
neutrality-related fields, it is particularly important to sell 
solutions rather than products. We must move away from the 
conventional “sell out” model used to sell parts and devices 
and, instead, change ourselves to develop new markets in 
previously untapped areas.
 
Our efforts may sometimes meet with failure, but what is 
important is that we keep trying new strategies so that we will 
find new value to offer society. This will lead to significant sales 
and profits in the future. I think this is exemplified by 
Commercialization, one of the Five Transformations of the NGK 
Group Vision.
Even aside from these sorts of externally focused efforts, 
realizing the NGK Group Vision and Environmental Vision will 
require major self-transformation on the NGK Group. For 
example, in order to realize net zero CO2 emissions by 2050, 
which is one of the goals of our Environmental Vision, we will 
need to implement a variety of technological innovations. One 
particularly high hurdle will be switching from fossil fuels, like 
natural gas, to alternative fuels, such as hydrogen and 
ammonia, to power ceramic firing. Not only within the NGK 
Group but in all of human history there is no example of 
hydrogen or ammonia-powered ceramic firing used in mass 
production. Both the flame color (radiation temperature) and 
atmosphere (partial vapor pressure inside the kiln) differ 
between fossil fuels and hydrogen and ammonia. Even the 
materials themselves will need to be changed; thus, the 
technological hurdles are extremely high. Nevertheless, we are 
resolute and determined.
 
We are considering a variety of ideas and combinations for 
the future, such as using hydrogen, ammonia and, so-called, 
“green methane” fuel* at different production facilities, 
depending on local considerations, as well as testing out CCS 
(CO2 collection and storage), which utilizes our 
subnano-ceramic membranes for CO2 separation at our own 
production facilities and then implementing them across 
society.
 
All of these transformations are based on another one of 
the Five Transformations: promoting Digital Transformation 
(DX). DX is essential for shortening the time frame of research 
and development and for constructing innovative business 
strategies. We envision the implementation of DX in two 
phases: a DX 1.0, which uses digitization to increase efficiency 
and a DX 2.0, which creates new value. First, we will implement 
DX 1.0 throughout the Group to improve the digital literacy of 
each employee, and, then, we will develop DX 2.0 based on a 
fundamental rethinking by each employee of their job and 
duties.
* Methane produced from CO2 using artiﬁcial photosynthesis and renewable energy. 
Technological innovation
Resolutely moving ahead despite major hurdles
Chiaki Niwa
Executive Vice President
22

Megatrends
Business Activities
Input
Fiscal 2020
Advance of
climate change
Change in 
energy
composition
Shift towards
EV and FCV
Innovation
in digital
Pursuing our vision through investment in growth areas
Corporate Governance
Financial capital
・Total assets
・Shareholders’ 
  equity
909 billion yen
501.5 billion yen
Manufactured capital
・Capital 
  expenditures
・Tangible fixed 
  assets
50.8 billion yen
372.2 billion yen
Intellectual capital
・R&D expenses
・Number of 
  patents held
22.4 billion yen
Japan 3,521
Overseas 4,452
Human capital
・Employees
19,695 people
Social and relationship 
capital
・Consolidated subsidiaries
・Social contribution 
  activity expenses
45
296 million yen
Natural capital
・Electricity
・Gas (natural gas 
  conversion)
・Oil (light oil 
  conversion)
・Raw materials
  used
・Total water usage
880,000 MWh
1.65 million liters
140,000 metric tons
3.78 million m3
116 million Nm3
Creating Value
Addressing society’s challenges, 
developing new areas for growth　
Sa
le
s,
 M
ar
ke
ti
ng
Re
se
ar
ch
 &
 D
ev
el
op
m
en
t
M
an
uf
ac
tu
ri
ng
ESG
Management
Profitability
Improvement
Research &
Development
Digital
Transformation (DX)
Ceramic
Technologies
Material technologies
Mass-production technologies
Process technologies
Commer-
cialization
23

Output
Fiscal 2020
Carbon Neutrality
Making clean energy more efficient
Making mobility clean and safe
Digital Society
Making smart society more comfortable
Making industries innovative
Charting a Course Ahead 
Net sales
Operating income
Net income attributable to 
owners of the parent
Return on equity (ROE)
452.0 billion yen
50.8 billion yen
38.5 billion yen
7.9%
Gross profit
123 billion yen
New product* sales ratio
*Within 5 years of commercialization
30％
Employee satisfaction (NGK)
Number of female managers (NGK) 
68%
29 people
CSR Procurement Guideline adoption rate 
for business partners 
Overseas students supported
   39 students from 5 countries stayed in company dormitory
   Scholarships (non-repayable) for 20 students from 10 countries
99.6%
CO2 emission
Discarded materials reduction 
Sales growth for products contributing 
to environmental protection 
(Figures are indexed with fiscal 2013 set at 100) 
Recycling rate
756,000 metric tons
3,000 metric tons
99.7%
144
A company to contribute to 
carbon neutrality and digital 
society with our unique 
ceramic technologies
NGK Group Vision
24

Although the NGK Group Vision presents us with a new path 
forward for the NGK Group, the aim of our research and 
development remains to develop ever more advanced material 
and process technologies with a focus on fine ceramics while 
continually creating new and competitive products. It is the job 
of Corporate R&D to keep coming up with products that will 
enable us to continue growing via carbon neutrality and digital 
society-related business once gasoline-powered automobile 
business and other internal combustion engine 
automotive-related business have passed their peak.
 
The business fields that attract attention are changing 
rapidly, and technological innovation in the market is also 
picking up speed. In order to adapt to this situation, we must 
increase the number of research and development themes that 
we are working on, as well as accelerate the speed of that 
research and development, as we pursue a strategy of open 
innovation. At the same time, however, we will continue to 
carefully invest time and resources into developing the unique 
core technologies that are NGK’s greatest strength.
R&D policies
Remain committed to unique core technologies
One of the research and development success stories of fiscal 
2020 is our EnerCera lithium-ion rechargeable battery. These 
thin, flexible, pouch-type batteries have now gone into mass 
production for use in multifunctional credit cards and 
automobile card keys. Additionally, we anticipate adoption of 
EnerCera for various types of smart cards, logistics-related IC 
tags and other IoT devices, wearable devices, and numerous 
other applications. Mass production of coin-type EnerCera 
batteries able to withstand temperatures of up to 105°C began 
in the first quarter of fiscal 2021, while a lineup that includes 
batteries able to function at temperatures of up to 125°C is 
expected to go into mass production during fiscal 2022. In 
tandem with this is the development of power systems and 
other systems and devices, which is being carried out in 
collaboration with IC manufacturers and device manufacturers. 
These are ultimately intended for joint sale to IoT device 
manufacturers and other end product manufacturers.
 
As for new bonded wafers, which utilize the technology in 
our bonded wafer for surface acoustic wave (SAW) filter, we are 
working to apply them to new SAW filters for 5G 
communications and optical devices for optical networks and 
data centers. These wafers are scheduled to go into mass 
production from next fiscal year.
 
We have begun providing samples of our gallium nitride 
(GaN) wafer for laser light to facilitate interest and adoption in 
the even larger market of power semiconductors. We will work 
closely with the device makers who are our customers to 
develop two types of wafers: a four-inch wafer for 
high-frequency applications and a six-inch wafer for 
high-power applications.
 
We are also currently performing demonstration testing at 
oil fields in Texas, U.S. of subnano-ceramic membranes 
capable of CO2 separation and capture. The development of 
this technology will also facilitate CO2 capture at power plants 
and production sites and represents a potential area of 
significant carbon neutrality-related business growth.
Recent results
EnerCera® goes into mass production, and gallium nitride (GaN) 
wafer samples start shipment
NGK Group Research and Development
Focusing on carbon neutrality and 
digital society in the development 
of new growth products
25

Our research and development will contribute to the realization 
of the NGK Group Vision by setting the New Value 1000 target. 
Essentially, New Value 1000 involves achieving 100 billion yen 
or more in sales from newly launched businesses by 2030 and 
increasing research and development expenditures to 300 
billion yen over the next 10 years, with 80% being allocated to 
carbon neutrality and digital society-related areas.
 
With regard to carbon neutrality-related business, we are 
developing subnano-ceramic membranes for use in CO2 
capture, utilization, and storage; various storage batteries, 
such as zinc rechargeable batteries for use in renewable energy 
applications; and solid oxide electrolysis cells (SOEC) essential 
for high-efficiency synthesis of fuel and base materials from 
captured CO2 and water. With regard to power semiconductors 
that achieve high energy efficiency and are used in EV power 
sources, we are expanding the application of gallium nitride 
(GaN) wafers by increasing their performance, as well as 
developing DCB and AMB substrates that use silicon nitride 
materials with high thermal conductivity.
 
With regard to digital society-related business, in addition 
to expanding applications and sales of EnerCera, we are 
developing new bonded wafers suited to new applications, 
such as optical computers and quantum devices. We are also 
working on next-generation susceptors for semiconductor 
manufacturing equipment, a large market, and ceramic 
packages for self-driving and other applications.
 
The top priority in all of the development we are 
undertaking is to ensure we put the NGK Group’s unique 
technologies to use in differentiating ourselves from the rest of 
the market. It is essential that we invest the time necessary to 
further develop these unique technologies, but also work to 
accelerate the pace of research and development overall.
New Value 1000
Aiming for 100 billion yen in sales from newly launched businesses
We have begun focusing serious attention on a development 
method known as materials informatics. The aim of this method, 
which involves creating databases of accumulated testing 
results and then having AI analyze them, is to make it possible to 
develop innovative ceramic materials in a short period of time. 
The fact that the NGK Group has a century’s worth of 
accumulated testing data makes us well suited to this method. 
We have finished digitizing this testing data, and we are now 
working on converting it into structured data suitable for 
analysis. This is being undertaken as a company-wide project 
involving not just Corporate R&D but also Corporate 
Manufacturing Engineering and the new Digital Transformation 
and Innovation Department. Results will be confirmed over a 
one-to-two-year period. Even if it takes 10 years, we will 
establish the technology. This method is already being utilized 
for organic materials, but many uncertainties and significant 
challenges remain with regard to its application for ceramics.
 
It is also important that we pursue open innovation. We will 
begin by doubling the number of joint research projects that we 
carry out with universities and research institutions, which 
currently numbers around two dozen, introduce technology from 
outside the NGK Group, and pursue joint development with 
companies that are working on developing devices like 
EnerCera. We are looking at equipping our other business sites 
with facilities like the ID-Room, which we set up at the NGK 
Head Office in order to facilitate this sort of development. In April 
2021, in partnership with the Nagoya Institute of Technology, we 
established the NGK Environment Innovation Laboratory on the 
university’s campus in Nagoya. We have begun work on the next 
generation of innovative products, like power semiconductor 
materials and high-performance storage battery materials.
 
We are also actively expanding the number of personnel that 
we have in research and development. In the past, once the 
research and development team had finished a prototype, the 
production engineering team would begin work on designing a 
pilot plant. Moving forward, in order to facilitate an efficient 
transition to mass production without the need for reworking, we 
are instituting a project system that ensures personnel familiar 
with both product design and manufacturing are involved in 
development from the basic process design phase.
Moving forward
Maintaining a sense of urgency about technological development that leads to 
competitive new products
Tsutomu Nanataki
Senior Vice President
Group Executive, Corporate R&D
26

From its very beginning, the NGK Group has sought to reexamine conventional ceramic manufacturing 
practices in light of the latest science and technologies in order to help it identify the optimal 
combination of process conditions for each of its products. And after nearly 100 years, this pursuit of 
optimization has accrued a wealth of technology and expertise from which the NGK Group draws its 
competitive strength.
Core Technologies 
of the NGK Group
Blending techniques
 (mix powders)
Kneading techniques
(mix powder and liquid)
Dispersion techniques
(dissolve powder into liquid)
Press molding
(pack powder into mold)
Extrusion molding
 (force clay through die)
Casting
 (pour clay into mold)
Tape casting
(make into thin sheets)
Continuous firing techniques
 (tunnel kiln)
Originally developed 
production equipment
Electrical properties
(dielectric breakdown strength, 
resistance, electric conductivity)
Thermal property measurements
(thermal expansion coefficient,thermal 
conductivity, softening/melting point)
Mechanical property 
measurements 
(intensity, Young’s modulus)
X-ray crystallographic 
analysis
Wet chemical analysis, 
fluorescent X-ray analysis
Optical properties
(linear transmittance, total-light transmittance)
X-ray CT scans
Image analysis
QC training
Small-group activities
Worksite capabilities
Global production control
Big data analysis
Structural reforms
Thermal stress calculations
Mechanical stress calculations
Life prediction
Penetrant testing
Ultrasonic flaw detection
Pressureless sintering
Hot pressing
Atmospheric control techniques
Cutting techniques
Grinding techniques
Sputtering
Electrode printing
CVD
Glass bonding
Plating
Direct bonding
Convective heat drying
Dielectric drying
Microwave drying
Electric current drying
Crystal shape/size
Pore shape/size
Crystal orientation
Lattice defects
Heat-resistant materials
Ion conducting materials
Translucent materials
Semiconductor materials
Monocrystalline materials
 
Polishing techniques
 (CMP, mechanical polishing)
Global production system
Metal–metal 
composite parts
Metal–ceramic 
composite parts
Ceramic–ceramic 
composite parts
Material function 
development 
technologies
Mixing techniques
 (blend, knead)
Molding
techniques
 (shape)
Drying techniques
 (dry)
Firing 
techniques
 (bake)
Techniques to 
combine 
differing materials
Mass production 
techniques
Measuring/analytical 
techniques
Non-destructive
testing
Quality control
(Q) 
Microstructure 
control technologies
Processing
techniques
 (cut, shave)
Production control
(D) 
Techniques to make 
differing materials into 
parts 
Simulation
techniques 
(CAE) 
Corrosion-resistant/
insulating materials
Highly thermal
conductive materials
Dielectric/piezoelectric
materials
Material 
technologies
Parts 
structural 
design
Analytical/
evaluative 
techniques
(observe, 
measures, 
calculate)
Control 
techniques
Production/
process
technologies
Competitive Strength
Producing ceramics is like putting 
together a complex jigsaw puzzle
27

Particles of the powdered raw materials that form ceramics 
have a diameter of just 1/1,000 of a millimeter. If the particles 
are too large, it will take too long to fire them, and if they are 
too small, they will exhibit cracking and variability. If particles of 
different sizes are mixed together, distortion may result. The 
optimal raw materials must be chosen from tens of thousands 
of possibilities and blended together.
 
The blended raw materials are molded using a method that 
suits the shape of the product and fired in a kiln. Upon firing, 
the particles of raw materials fuse together and contract, 
causing finished products to shrink by about 25% for insulators 
and about 10% for HONEYCERAM®. The key priority is to 
create uniform, appropriate gaps between powder particles 
during the molding stage. Failure to do so will result in 
variability in how the product shrinks when fired, causing its 
shape to change. Conditions inside the kiln are also important. 
The powdered raw materials harden to create minuscule 
crystals, and the structure of these crystals determines a 
ceramic product’s characteristics. That crystallization process 
is influenced by the temperature and duration of the firing 
process, flame color (radiant temperature), and surroundings 
(water vapor partial pressure inside the kiln). If temperature 
variations inside the kiln create differences in how firing 
proceeds, the finished product will not be uniform.
 
In this way, high-performance ceramic products can only 
be produced if a variety of conditions are satisfied at every 
stage of manufacture. It is like a complex jigsaw puzzle. The 
breadth of accumulated technologies and expertise is the 
source of the NGK Group’s competitive strength.
 
To realize the NGK Group Vision, we carry out 
groundbreaking research and development and create 
innovative technologies in the shortest time possible by 
combining our accumulated strengths with state-of-the-art 
technologies such as Digital Transformation (DX). 
Ceramic manufacturing is patient, methodical work, which requires you to blow 
life into inanimate material that is hard and brittle.
There are three stages by which raw materials become products, and each 
requires advanced technologies.
1. Selecting and mixing the raw materials on which the product is based: 
Blending and kneading
2. Molding the product: Shaping
3. Firing the product so as to realize the optimal crystalline structure: Baking
28

Net Sales
452.0 billion yen
Operating Income
50.8 billion yen
Operating Income 
Margin
11.2%
80
60
40
20
2019/3
2017/3
2018/3
0
20
10
0
63.2
15.8
70.0
15.5
64.7
14.0
2020/3
55.0
12.4
(Billions
 of yen)
(%)
2021/3
50.8
11.2
500
400
300
200
100
2019/3
2017/3
2018/3
0
401.3
451.1
463.5
2020/3
2021/3
442.0
452.0
(Billions
 of yen)
In my job in charge of the NGK Group’s finances, I will lead efforts to utilize financing, business portfolio 
management, and IR activities to help move business in the direction of the NGK Group Vision.
Overview of Business Results and Management Policies
Investing management resources in 
growth areas in order to realize our vision
As the head of finance, whose duties revolve around 
minimizing capital costs and maximizing profitability in excess 
of capital costs, is responsible for formulating capital policy 
and maintaining clear and appropriate communication with 
shareholders and investors. One of our key management 
indicators is ROE (return on equity), and our 
medium-to-long-term target for ROE is 10%. Using NGK ROIC 
(return on invested capital), which is closely linked to ROE, as a 
management indicator, we are pursuing management that 
prioritizes capital efficiency. 
 
Moving forward, we will continue to support top 
management from a financial perspective while also keeping 
them in check. 
Duties of the head of finance
Implement capital policy that contributes to raising corporate value 
We are anticipating sustained returns on the capital investment 
that we made over the past five years. This free cash flow will 
be used for capital investment in carbon neutrality and digital 
society, two focuses of the NGK Group Vision, and focused 
investment in research and development, aiming for a 
milestone target of 100 billion yen in sales from new product 
business*1 by 2030.
 
However, issues such as how to sell products and how to 
cultivate a market for them make it difficult to get the ball 
rolling for new businesses, so achieving 100 billion yen in sales 
is a tall order. Starting in fiscal 2021, we have created a new 
project team that will develop carbon neutrality-related 
products as our third pillar, and it is important that we invest 
resources into such fields.
*1 Business that will be launched in future and businesses that are still quite small in scale. 
Towards realization of the NGK Group Vision
Focusing on investments and R&D in new fields
29

Net Income Attributable 
to Owners of the Parent
38.5 billion yen
Return on Equity 
(ROE)
7.9%
NGK ROIC 
(return on invested capital)
8.6%
20
10
15
5
0
2019/3
2017/3
2018/3
2020/3
(%)
12.7
15.7
15.8
9.8
2021/3
8.6
NGK ROIC = Operating income ÷ Business assets
Hideaki Shindo
Director and 
Senior Vice President
15
10
5
0
40
30
20
10
50
2019/3
2017/3
2018/3
0
36.4
45.8
35.5
2020/3
(Billions
 of yen)
(%)
27.1
2021/3
38.5
ROE
Net income
7.6
8.8
10.4
5.8
7.9
 
A key aspect of NGK ROIC is that it utilizes business assets 
(accounts receivable, inventories, fixed assets) in lieu of invested 
capital, and operating income in lieu of after-tax operating income, 
as these are directly connected with the results of business 
divisions, or can be controlled by business divisions.
 
NGK Group business represents highly capital-intensive 
process manufacturing; thus, while the profit potential is high, 
the asset turnover ratio is low, being about 0.5. The burden of 
capital investment is a barrier for competitors entering this 
industry. An excessive amount of assets can lead to 
inefficiency in managing them, and, in recognition of this, we 
have been using NGK ROIC as an indicator since 2016. In 
order to optimize inventories assets and fixed assets on the 
balance sheets of each business division, targets are 
established and performance is tracked, with the managers in 
charge of a given business area explaining inventory reductions 
and investment efficiency at biannual budget meetings, in 
some cases to the president directly. 
 
In addition to this, from fiscal 2021, we have begun ROIC 
tree-based management, which we break all the way down to 
items such as net sales cost ratio, SGA (selling, general, and 
administrative) expense ratio, and inventory/accounts receivable 
turnover period (in months) at the level of the individual 
business division in order to facilitate business improvement.
 
The NGK ROIC target for fiscal 2021 has been set at 12%. 
When you take taxes and expenses into account, a 12% rate is 
required in order to achieve an ROE of 10%. We explain to the 
entire NGK Group that if we don’t exceed this figure, we cannot 
provide investors with the level of returns they desire. 
 
Looking at the performance forecast for fiscal 2021, with 
the post-COVID-19 rebound in demand, particularly for 
automotive-related products, insulator and package 
businesses are expected to move into the black, with 
profitability expected to improve significantly. With impairment 
of fixed assets and business restructuring well on the way to 
completion, depreciation costs are expected to slow down 
gradually due to low investments compared to previous years. 
In terms of efficiency, as well, inventory reductions and other 
factors are keeping financial leverage at around 0.4, which puts 
us on track for ROE of 10% or more.
Key indicators
Using NGK ROIC as a management indicator
The five key management indicators that we focus on are net 
sales, operating income, net income, ROE, and NGK ROIC. 
Operating income represents business results and is used as 
the basis for determining input into growth sectors, return for 
stakeholders, and retained funds. Net sales are a measure of 
growth, while ROE is used as an external indicator and NGK 
ROIC as an internal indicator.
30

Capital Expenditures
50.8 billion yen
Depreciation and 
Amortization
44.9 billion yen
Total Assets
909.0 billion yen
Net Assets
517.9 billion yen
DE Ratio
0.5
(Billions
 of yen)
100
60
40
20
80
2019/3
2017/3
2018/3
0
60.1
71.7
94.0
105.3
2020/3
2021/3
50.8
26.6
30.3
35.7
39.6
44.9
Depreciation and amortization
Capital expenditures
Net assets
Total assets
DE ratio
1,000
600
400
200
800
2019/3
2017/3
2018/3
0
759.4
826.2
863.6
2020/3
(Billions
 of yen)
833.1
2021/3
909.0
427.6
472.9
489.2
469.1
517.9
0.5
0.4
0.5
0.5
0.5
0.6
0.4
0.2
0.0
Overview of Business Results and Management Policies
With regard to debt-to-equity structure on the balance sheet, 
we are aiming for a DE ratio of around 0.4. This will preserve an 
equity ratio of at least 50%, enabling us to ensure our bond 
rating remains at least A+ (R&I). At present, liability costs are 
low compared to capital costs, but, because, an increase will 
upset our financial equilibrium, we believe this is a reasonable 
level for achieving both capital efficiency and financial 
soundness.
 
In terms of financing, we think about timing, amount, and 
time frame based on a forecast of cash flow three years out. 
We prioritize economic cost while adopting a mix of long and 
short-term financing to ensure there is no overlap in repayment 
timing.
 
In addition, we focus on net DE ratio*2. Due to past 
incidents, such as NAS® battery fires and anti-trust cases, 
which required cash outflow, as well as due to active capital 
investment, we borrowed 305 billion yen over the past 10 
years. As of March 31, 2021, our net cash total was minus 97.8 
billion yen, with an interest-bearing debt balance of 264.2 
billion yen. In order to put our net cash back into the black, we 
are emphasizing cash flow in our managerial decisions.
 
We have embarked on a plan to invest 300 billion yen into 
research and development over the next 10 years as part of the 
NGK Group Vision. The money to fund this investment can 
come from the cash flow generated by our business. We intend 
to maintain our DE ratio by balancing interest-bearing debt 
repayment with borrowing.
*2 Net DE ratio = (Interest-bearing debt as of the end of the previous fiscal term – Cash 
and cash equivalents as of the end of the previous fiscal term) ÷ Equity as of the end 
of the previous fiscal term × 100
Capital policy and financial strategy
Emphasizing soundness and maintaining a minimum rating of at least A+
Our profit return policy aims to achieve a medium-term 
consolidated dividend payout ratio of around 30%, which is 
paid as direct shareholder returns. We make use of three-year 
moving averages, due to the fact that net income fluctuates 
from year to year as a result of such factors as extraordinary 
income and loss and tax burden. Also, starting from the period 
ended March 2021, we have added net asset dividend ratio as 
a new metric to complement dividend payout ratio. Our 
three-year moving average target is 3%. This is because 
multiplying ROE with the dividend payout ratio gives a net 
asset dividend ratio of 3%. 
Shareholder returns and IR 
Lowering capital costs by communicating with investors 
31

Dividend per Share
30 yen
Payout Ratio
24.7%
Net Cash Provided by 
Operating Activities
85.6 billion yen
Net Cash Used in 
Investing Activities
(51.7) billion yen
Free Cash Flow
33.9 billion yen
50
30
20
10
40
2019/3
2017/3
2018/3
0
50
30
20
10
40
0
40
44
50
2020/3
(Yen)
(%)
45.3
35.5
30.9
59.0
50
2021/3
24.7
30
Dividend per share
Payout ratio
100
0
50
-50
2019/3
2017/3
2018/3
-150
-100
80.2
50.6
61.2
2020/3
(Billions
 of yen)
53.2
53.2
2021/3
85.6
(56.5)
(49.4)
(109.7)
(60.8)
(51.7)
(48.5)
23.7
11.0
(76.0)
33.9
Free cash ﬂow
Net cash provided 
by operating activities
Net cash used in 
investing activities
 
In fiscal 2021, we also acquired 5 million shares of treasury 
stock at 9.7 billion yen. The NGK Group has also been 
proactive about shareholder returns from a 
medium-to-long-term perspective and is condensing 
shareholders’ equity through the acquisition since 1996 of a 
cumulative total of 108.93 million shares of treasury stock at 
135.6 billion yen.
 
Since the 1990s, NGK has undertaken IR activities aimed 
at increasing ROE. In addition to financial results briefings for 
investors held biannually in Tokyo, major securities companies 
host a forum for overseas investors. We also undertake 
overseas IR twice a year. Recently, due to the impact of the 
COVID-19 pandemic, we have focused on online 
communications, along with phone interviews and personal 
visits with institutional investors totaling around 160 sessions 
for the year. We also carry out IR targeting individual investors.
 
We recognize that, at 8.7%, the NGK Group’s capital cost 
is high and that we have a high β value*3. In order to lower this 
capital cost, we need to communicate with investors through 
IR activities to close the gap in future awareness. We are also 
explaining the governance initiatives that we have put in place 
to make sure investors understand that a new system has been 
established for safeguarding against a reoccurrence of past 
problems. Also, because gasoline-powered, diesel-powered, 
and other internal combustion engine-related business 
accounts for such a large portion of NGK Group sales, I feel 
this creates resistance to purchasing our shares due to the 
global trend towards EVs. But the reality is that sales of internal 
combustion engine automobiles will not suddenly decrease 
before 2030. We carefully explain to investors that in the 
meantime we are taking the cash we earn and aggressively 
investing it in areas such as carbon neutrality and digital 
society. 
 
Following our announcement of the NGK Group Vision, 
investors have complimented us on how clear and 
easy-to-understand the Group’s direction has become. We are 
also embarking on our NGK Group Environmental Vision, which 
aims to realize net zero CO₂ emissions by 2050. We are 
therefore investing time and energy into meeting with ESG 
investors to explain the ESG management-centered goals that 
we are working toward.
* 3β = Securities-specific returns ÷ Overall market returns
32

100.0
80.0
60.0
40.0
20.0
0
2020/3
2021/3
2017/3
2018/3
2019/3
80.0
84.1
86.8
87.3
75.6
(10,000 
metric tons)
* Figures are indexed with ﬁscal 2014 set at 100.
Sales growth*
180
160
140
120
100
80
60
40
20
0
2014/3
2015/3
2016/3
2017/3
2018/3
2019/3
2020/3
2021/3
152
144
160
126
144
126
100
137
145
144
Target:
Increase by 
60%
Base year
Sales Growth for Products Contributing 
to Environmental Protection (NGK Group)
Waste
Basic unit per net sales
10.0
8.0
6.0
4.0
2.0
0
2020/3
2017/3
2018/3
2019/3
100
80
60
40
20
0
2021/3
5.5
5.9
5.9
81
72
70
5.8
68
4.6
55
55
(10,000 
metric tons)
Note: FY2013 = 100
         Excluding non-production bases
500
400
300
200
100
2020/3
2021/3
2017/3
2018/3
2019/3
0
409
432
453
433
378
(10,000 m3)
2020/3
2017/3
2018/3
2019/3
2.50
2.00
1.50
1.00
0.50
0
55
57
2.03
1.90
62
1.92
250
200
150
100
50
0
(Persons)
(%)
135
2.20
2021/3
145
2.35
75
60
45
30
15
2020/3
2017/3
2018/3
2019/3
0
44
36
7
17
27 27
100
75
50
25
0
100
100
100
100
100
100
100
100
(%)
(Cases)
37
57
2021/3
100
100
67
66
Male
Female
Male
Female
Number of disabled 
employees
Employment rate
* Figures are for the total of the three companies including NGK, NGK Yu-Service, and NGK Ceramic Device.
Non-Financial Highlights
Total Water Usage 
(10,000 m3, NGK Group)
3,780,000 m3
Waste
46,000 metric tons
All NGK Group manufacturing sites
CO2 Emission
756,000 metric tons
All NGK Group manufacturing sites
Number of Disabled 
Employees
145
Employment Rate*
2.35%
Number of Parental
Leave Takers
133
Retention Rate  
(NGK)
100%
Note: Excluding non-production bases
For the consolidated values of OUTPUT/energy-origin CO2 and Scope 2 
(energy-origin CO2), the calculation standard has been changed from the 
previous fixed value for the emission coefficient of electricity (a factor for 
converting electricity consumption into CO2) to annually updated values of 
each electric power supplier.
33

Percentage of  Female Directors 
(NGK)
11.1%
Percentage of Outside Directors 
(NGK)
33.3%
35
30
20
25
10
5
15
2020/3
2017/3
2018/3
2019/3
0
25.0
15.4
25.0
(%)
23.1
2021/3
33.3
4,500
3,500
2,500
1,500
2020/3
2017/3
2018/3
2019/3
0
4,134
4,186
3,038
3,191
3,352
4,346
(Number)
3,513
4,485
2021/3
3,521
4,452
20
15
10
5
2020/3
2017/3
2018/3
2019/3
0
14.8
14.6
14.6
13.6
13.4
14.1
(Years)
13.7
14.1
2021/3
14.3 14.1
Male
Female
National patents of Japan
Foreign patents
3.0
2.5
2.0
1.5
2020/3
2017/3
2018/3
2019/3
0
2.2
2.0
2.0
(%)
2.9
2021/3
3.0
3.5
15
10
5
2020/3
2018/3
2019/3
0
8.3
8.3
(%)
7.7
2021/3
11.1
0.0
2017/3
0.030
0.020
0.010
1.000
0.040
2020/3
2017/3
2018/3
2019/3
0
0.000
2021/3
0.002
0.000
0.743
0.004
Percentage of Female Managers 
(NGK)
3.0%
Severity Rate (Number of Lost Work Days
per 1,000 Hours) (NGK)
0.002
Average Duration of Continuous Employment
(NGK)
Male 14.3 years
Female 14.1 years
Foreign patents
4,452
Number of Patents Held
Japan 
3,521
34

NGK Group’s ESG
By pursuing business in harmony with the 
environment, respect for human rights, 
safe and comfortable workplaces, 
and improved corporate governance, 
the NGK Group strives to be a corporation 
trusted by all of its stakeholders.

To help realize the Sustainable Development Goals (SDGs) adopted by the United Nations, the NGK 
Group seeks to provide new value to society with our unique technologies, thus contributing to the 
realization of a sustainable world and winning positive expectations and trust among society. All those 
who work in the NGK Group respect human rights and comply with the law by acting on a foundation of 
fair values and internationally recognized norms of judgment.
ESG Action Framework Chart
ESG Committee
Chair: President
ESG 
Management 
Department
Development Committee
HR Committee
Chair: Senior Vice President
Environment, Industrial 
Safety & Health Committee
Chair: Executive Vice President
Compliance Committee
Chair: Executive Vice President
Chair: Senior Vice President
Quality Committee
Chair: Executive Vice President
Facilities Committee
Chair: Vice President
President
ESG Management
ESG is central to the management of the NGK Group. Amidst 
ongoing overseas business expansion, we seek to ensure 
greater managerial transparency and autonomy within an 
environment which cultivates within every member of the NGK 
Group a sense of fairness accompanied by decision-making 
and action which accords with international norms.
 
In April 2019, the ESG Committee was established as a 
body for information sharing, opinion exchange and policy 
discussion among senior management, and this has now been 
followed by the establishment of the ESG Management 
Department in April 2021 in order to handle lateral 
implementation of ESG-related activities across the NGK Group 
and to strengthen information dissemination about the activities.
ESG Action Framework
37

Climate change countermeasures
● Plan specific action on TCFD (governance, strategy, risk management)
Main activities
Key themes
Activity leader
Carbon neutrality
● Pursue CCU/CCS (CO2 capture, utilization, and storage) market business expansion 
 and new product development
● Net zero CO2 emissions-focused ICP, energy efficiency, fuel changeover, renewable energy use
Supply chain expansion
Revamping of 
governance system
● Promote social contribution activities within the Group
Community service activities
● Expand CSR procurement
● Promote human rights activities
● Strengthen supervision functions of Board of Directors
● Corporate governance code compliance
Task force
CN Project
Task force
Task force
Task force
Note: Task forces are project teams comprising members of relevant business divisions.
2nd
July 7, 2020
● ESG seminar by outside experts
● Discuss governance system
1st
April 27, 2020
● Decisions on fiscal 2020 action plans and key themes
4th
October 29, 2020
● Study social contribution activities
3rd
September 25, 2020
● Formulate NGK Group environmental vision
● Discuss governance system
6th
February 25, 2021
● Discuss Board of Directors, Executive Committee
● Global warming task force report
7th
March 19, 2021
● Discuss NGK Group Environmental Vision and new Five-Year Environmental Action Plan
● Develop NGK Group human rights policy
5th
December 22, 2020
● Plan ESG information disclosure and integrated report (NGK Report 2021)
● Evaluate research and development topics from an SDGs perspective 
● Tabulate ESG activity-related capital investment
● Study carbon neutrality-focused capital investment
Fiscal 2020 ESG Committee Achievements
At the first ESG Committee session in fiscal 2021, we decided on the key action themes for the fiscal year.
Key ESG Activity Themes
The NGK Group is a signatory to the United Nations Global 
Compact, which advocates for independent action on the part 
of companies. We believe that addressing a broad range of 
social problems through our business activities, while 
measuring progress against indicators such as the SDGs, is an 
important corporate social responsibility.
 
The UN Global Compact is a global framework for realizing 
sustainable growth through companies and organizations 
acting as good members of society.
NGK Group Signs UN Global Compact
Ever since its foundation, the NGK Group has pursued 
business in the energy, ecology, and electronics sectors in 
efforts 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 the SDGs, and we will 
continue to provide new value by leveraging our unique 
ceramic technologies towards the realization of a sustainable 
society.
Position on SDGs
38

Basic Policies
Constituent members: 4
Number of meetings in fiscal 2020: 14
The Audit & Supervisory Board comprises members of NGK who attend 
Board of Directors meetings and other important meetings. At those 
meetings they are able to audit the directors’ decision-making process and 
execution of duties, confirm the status and operation of the company’s 
internal control system, and review the appropriateness of accounting 
auditors’ auditing methods and results.
Audit & Supervisory Board
Constituent members: 10
Number of meetings in fiscal 2020: 1
The Corporate Council comprises outside directors, representative directors, 
and directors presiding over the secretarial office. It serves as a vehicle for 
outside directors to offer advice to senior management on a variety of 
management-related issues.
Constituent members: 5
Number of meetings in fiscal 2020: 1
This conference comprises outside directors who exchange opinions 
concerning managerial issues and other matters, aiming to actively 
contribute to discussions at the Board of Directors’ meetings.
Conference of Outside Directors and 
Outside Audit & Supervisory Board Members
Constituent members: 7
Number of meetings in fiscal 2020: 12
This hearing comprises Audit & Supervisory Board members and outside 
directors. Information is collected from the personnel in charge within each 
division regarding the business environment and issues of NGK.
Hearing Convened by Audit & Supervisory 
Board Members and Outside Directors
A
Corporate Council
B
C
D
The NGK Group is conducting measures to expand and strengthen its corporate governance to increase 
corporate value with the intent of becoming a company trusted by all its stakeholders.
General Meeting of Shareholders
President
Auditing
Department
Strategy 
Committee
ESG Committee
Audit & Supervisory Board
Accounting Auditors
Opinion exchange, information collection
Head Ofﬁce, Group companies in and outside Japan
Business execution functions
Executive Committee
Business execution 
divisions
A
H
Inside board member: 2
Outside board member: 2
(Independent director: 2)
NGK’s basic approach to corporate governance is to establish 
and maintain an organization capable of swiftly responding to 
changes in the business environment while ensuring the 
legality of business activities and the transparency of 
management and a fair and open management system 
emphasizing the interests of shareholders.
 
To put this approach into practice, NGK has chosen a 
governance structure anchored by the Audit & Supervisory 
Board. In addition to the General Meeting of Shareholders, the 
Board of Directors, and the Audit & Supervisory Board, the 
corporate governance system at NGK includes the Executive 
Committee and several other committees established to assist 
the President in management decision-making. These bodies 
help to enhance governance efficacy by deliberating and 
reviewing important matters.
 
Considering the importance of swift and optimal 
decision-making and its execution for responding promptly to 
changes in the operating environment, NGK introduced a 
corporate officer system, thereby separating the management 
decision-making and supervision function from the business 
execution function, and clearly defining the responsibilities of 
both as well as strengthening their functions.
 
Furthermore, to strengthen the supervision and monitoring 
functions of the Board of Directors, NGK has mandated the 
main committees, among the committees that handle the 
respective risks surrounding NGK, to make reports to the 
Corporate Governance
Hearing Convened by Audit & Supervisory 
Board Members and Outside Directors
Corporate Council
Conference of Outside Directors and 
Outside Audit & Supervisory Board Members
B
C
D
39

Board of Directors
E
Constituent members: 9
Number of meetings in fiscal 2020: 14
The directors who make up the Board of Directors deliberate and 
decide upon matters prescribed under the Companies Act, NGK’s 
articles of incorporation, and other such authoritative sources, as 
well as upon important management-related matters. The Board 
also monitors the job performance of all company directors.
Constituent members: 6
Number of meetings in fiscal 2020: 6
This committee comprises outside directors and an inside director 
in charge of compliance. Its members look for fraud or illegalities 
involving officers and others of NGK, as well as monitor compliance 
with competition laws and the Foreign Corrupt Practices Act.
Business Ethics Committee
G
Constituent members: 17
Number of meetings in fiscal 2020: 19
This committee comprises the president, vice president, group 
executives, the group executive for Corporate R&D, the group 
executive for Corporate Manufacturing Engineering, executive 
officers in charge of each division, senior fellows, and Audit & 
Supervisory Board members, as well as executive officers, 
committee chairs, general managers, and division heads 
designated by the president. This body deliberates the matters 
necessary to help the president with decision-making.
Executive Committee
H
Board of Directors
Development
Committee
Facilities
Committee
HR Committee
Compliance 
Committee
Internal 
Controls Committee
Environment,
Industrial
Safety & Health
Committee, etc.
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.
Whistleblowing, consultation, etc. 
Outside lawyers/
internal contact point
E
F
G
Inside director: 6
Outside director: 3
(Independent director: 3)
Inside director: 2
Outside director: 3
(Independent director: 3)
Inside director: 1
Outside 
director: 5
(Independent director: 5)
Board of Directors. In addition, NGK ensures that the intent of 
the Corporate Governance Code is thoroughly implemented by 
establishing meeting structures, such as the Nomination and 
Compensation Advisory Committee, Corporate Council, 
Conference of Outside Directors and Outside Audit & 
Supervisory Board Members, and Business Ethics Committee.
 
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. To reflect changes 
in society since the previous revision, in January 2019 the NGK 
Group Code of Conduct was revised with an emphasis on 
respect for human rights, thorough compliance, and the 
realization of a sustainable society through business activities.
Helpline
Hotline
Outside lawyers
NGK Group executives and employees
Corporate Governance System
To ensure lawful business activities and management 
transparency, respond swiftly changes in the management 
environment, and establish and maintain a fair management 
system from the shareholder’s perspective, NGK has 
established the following systems.
Constituent members: 5
Number of meetings in fiscal 2020: 4
Comprising independent outside directors, chair, and the president, 
this committee deliberates on personnel matters of directors and 
Audit & Supervisory Board members, remuneration of directors 
and executive officers, proposals for remuneration of all Audit & 
Supervisory Board members, and Chief Executive Officer 
succession planning.
Nomination and Compensation 
Advisory Committee
F
Quality Committee
40

April 1999
Established the NGK Code of Conduct
April 2003
Revised guidelines into the NGK Group Code of Conduct
Introduced an executive officer system
June 2005
Introduced a stock option
Introduced an outside director 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
Corporate Governance Enhancement
Ongoing structural enhancements aimed at strengthening
corporate governance include the introduction of an executive 
officer system and an outside director system to improve the 
management supervision and monitoring functions and 
facilitate recommendations with respect to overall 
management.
Corporate Governance
January 2019
Revised the NGK Group Code of Conduct
April 2019
Established the ESG Committee
April 2020
Established the Compliance Committee
Established the HR Committee
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
February 2020
Endorsement of recommendations of the Task Force on 
Climate-related Financial Disclosures (TCFD)
April 2021
June 2021
Formulated the NGK Group Vision
Formulated the NGK Group Human Rights Policy
Outside directors increased to 1/3rd of Board of Directors
An outside director made the chair of the Nomination and 
Compensation Advisory Committee
October 2018
Appointed a chief compliance officer 
Established the ESG Management Department
Established the NGK Group Basic Guidelines 
for Compliance Activities
June 2017
Appointed one additional outside director
Corporate Governance Report
https://www.ngk.co.jp/resource/pdf/sustainability/governance_en.pdf
Reference URL
41

Evaluation on the Effectiveness of the Board of Directors
Key Focuses of the Board of Directors
With regard to its effectiveness, the Board of Directors issues a 
survey at the end of every fiscal year to directors and Audit & 
Supervisory Board Members. The results are reported at the 
Board of Directors’ meeting, after the analysis and evaluation 
by an external organization, and NGK implements specific 
initiatives to enhance the effectiveness of the Board of 
Directors based on issues identified in the results of this 
evaluation. 
 
Regarding the evaluation of the Board of Directors 
conducted in fiscal 2020, a survey with a total of 50 questions 
and an open-ended section was conducted at the beginning of 
April 2021, and the results thereof were reported at a meeting 
of the Board of Directors held on June 10. Regarding the 
overall evaluation, we received the following comments from 
the external organization.
 
Based on the results of this evaluation, NGK will continue 
endeavoring to maintain and strengthen the effectiveness of 
the Board of Directors, including implementing specific 
measures suited to actual circumstances at the Company.
The Board of Directors focuses primarily on deliberating and 
deciding matters (such as company-wide unified budgeting; 
strategic planning such as 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 
employee) 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.
● Budgeting and account settlement
● Establishment of new group companies, mergers, investments in joint ventures (establishment of new regional power 
companies)
● Capital investment in production facilities and equipment
● Sale of cross-shareholdings
● Formulation of medium-to-long-term vision
● Content of the NGK Group Environmental Vision and the fifth Five-Year Environmental Action Plan
● Formulation of the NGK Group Human Rights Policy
● Basic Guidelines for Compliance Activities (and guideline-related corporate rules and regulations governing implementation)
● Policies for determining remuneration of directors and other senior management
Survey
Questionnaire given to directors 
and Audit & Supervisory 
Board members
Analysis and Evaluation
Questionnaire results analyzed 
and evaluated by an outside 
organization
Improvement Initiatives
Specific initiatives created 
based on evaluation results
The following are key matters the Board of Directors deliberated and voted on in fiscal 2020.
Measures to Boost Effectiveness
● The foundational elements required of the Board of Directors 
have been maintained, such as leadership, commitment, and 
its sound culture and operation. The Board of Directors also 
raised additional issues in order to make improvements. 
● Owing to the above, the external organization considers that 
the Board of Director possesses continuous effectiveness. 
● In addition to continuing issues previously identified, 
including the understanding of risks for important, large-scale 
projects, and the analysis of past management decisions, 
etc., new issues were identified to further increase 
effectiveness, including medium- to long-term strategy, the 
optimal use of funds, and the enhancement of risk  
management, etc. 
● In particular, there was an increasing awareness of issues 
within NGK related to the composition of the Board of 
Directors, as well as operational issues such as the 
establishment of proposals, etc. Therefore, continuing review 
of the ideal composition and functions of the Board of 
Directors and more focused discussions on medium- to 
long-term strategy and risk management are expected to 
contribute to further improvements in the effectiveness of the 
Board of Directors. 
42

Board of Directors (as of June 30, 2021)
Taku Oshima
Chairman
Ryohei Iwasaki
Director and Senior 
Vice President
Shigeru Kobayashi
President 
Independent Director
Hiroyuki Kamano
Outside Director
Independent Director
Emiko Hamada
Outside Director 
Independent Director
Kazuo Furukawa
Outside Director 
Hiroshi Kanie
Executive Vice President
Responsible for business groups, Group Executive, 
Process Technology Business Group; in charge of 
management affairs
Hideaki Shindo
Director and Senior 
Vice President
Newly appointed
Responsible for ESG Management Dept., 
Secretarial Office, Finance Dept.
and Purchasing Dept.
Chiaki Niwa
Executive Vice President
Responsible for Corporate R&D, Corporate Manufacturing Engineering,
Quality Management Dept., Environment, Industrial Safety & Health Dept., and 
Digital Transformation and Innovation Dept.; Chair of Quality
Committee, Environment, Safety and Industrial Health Committee
Corporate Governance (Management System)
Joins NGK
Appointed as vice president 
Appointed as senior vice president 
Appointed as representative director and president
Appointed as representative director and chairman 
(incumbent)
March
June
June
June
April 
1980
2007
2011
2014
2021
Attendance at Board of 
Directors meetings
100% (14/14)
Attendance at Board of 
Directors meetings
100% (11/11)
Attendance at Board of 
Directors meetings
100% (14/14)
Joins NGK
Appointed as vice president 
Appointed as senior vice president 
Appointed as director and senior vice president 
Appointed as representative director and president
(incumbent)
March
June
June
June
April 
1983
2016
2018
2020
2021
Joins NGK
Appointed as vice president 
Appointed as senior vice president
Appointed as director and senior vice president
Appointed as representative director and executive 
vice president (incumbent)
March
June
June
June
June
1981
2010
2012
2014
2018
Responsible for Auditing Dept., Corporate Planning Office, New Business
Planning Dept., Human Resources Management Dept., Group Compliance
Dept., Legal Dept., Intellectual Property Dept., and General Affairs Dept.;
Senior Officer in charge of Group Companies; Chief Compliance Officer;
Chair of Compliance Committee and Internal Controls Committee
Joins NGK
Appointed as vice president
Appointed as director and vice president
Appointed as director and senior vice president
Appointed as representative director and executive 
vice president (incumbent)
March
June
June
June
June
1984
2013
2015
2016
2020
Attendance at Board of 
Directors meetings
100% (14/14)
Joins NGK
Appointed as vice president 
Appointed as director and vice president
Appointed as director and senior vice president
(incumbent)
March
June
June
June
1982
2008
2009
2012
 
Joins NGK
Appointed as vice president 
Appointed as director and senior vice president
(incumbent)
April
June
June
1988
2018 
2021
Attendance at 
Board of Directors meetings
100% (14/14)
Joins Ministry of Foreign Affairs
Trains at Legal Training and Research Institute, 
Supreme Court of Japan
Becomes registered attorney
Becomes managing partner, Kamano Sogo Law 
Offices (incumbent)
Appointed as outside audit & supervisory board 
member, Komatsu Ltd.
Appointed as outside director, Sumitomo Life 
Insurance Company
Appointed as vice president, Tokyo Bar Association
Appointed as director, NGK (incumbent)
Appointed as outside audit & supervisory board 
member, House Foods Group Inc. 
Appointed as outside director, Spancrete 
Corporation (incumbent)
Appointed as outside audit & supervisory board 
member, House Foods Group Inc. (incumbent)
April
April
April
Oct.
June
July
April
June
June
June
June
1971
1979
1981
1988
2007
2007
2009
2011
2015
2020
2021
Attendance at Board of 
Directors meetings
100% (14/14)
Joins Taiyo Yuden Co., Ltd.
Appointed as general manager, Quality Assurance Control
R Technology Div., Engineering Group, Taiyo Yuden
Appointed as chief engineer, Basic Research Div.,
General Research Laboratory, Engineering Group, Taiyo Yuden
Appointed as associate professor, Center for Social
Contribution and Collaboration, Nagoya Institute of
Technology (NITech)
Appointed as professor, Center for Social Contribution and 
Collaboration, NITech, and professor for Master of
Techno-Business Administration, NITech Graduate School
Appointed as professor, Center for Research on
Assistive Technology for Building a New Community, NITech
Appointed as third-area program ofﬁcer, A-STEP
(Adaptable and Seamless Technology Transfer
Program through Target-driven R&D), Japan Science
and Technology Agency (incumbent)
Appointed as part-time lecturer, NITech (incumbent)
Appointed as visiting professor, Nagoya University
(currently Nagoya University, Tokai National Higher
Education and Research System)
Appointed as director, NGK (incumbent)
Appointed as outside director, Taiyo Yuden (incumbent)
Appointed as member of Low-Carbon Society Strategy 
Promotion Committee, Center for Low Carbon Society 
Strategy, Japan Science and Technology Agency (incumbent)
April
Dec.
Sept.
Nov.
April
April
May
July
Aug.
June
June
March
1984
2001
2003
2008
2011
2012
2015
2016
2016
2017
2019
2021
Attendance at Board of 
Directors meetings
100% (14/14)
Attendance at Board of 
Directors meetings
100% (14/14)
Joins Hitachi, Ltd.
Appointed as representative executive officer, executive
vice president, and executive officer; general manager and
CEO, Information & Telecommunications Group; general
manager, Export Control Div.; Hitachi
Appointed as representative executive officer and
president, Hitachi
Appointed as director, representative executive officer,
and president, Hitachi
Appointed as vice chair, Keidanren (Japan Business
Federation)
Appointed as director, representative executive officer,
and vice chair, Hitachi
Appointed as special advisor, Hitachi
Appointed as president, Information Processing
Society of Japan
Appointed as chair, New Energy and Industrial
Technology Development Organization
Appointed as director, NGK (incumbent)
Appointed as outside director (audit and supervisory
committee member), Pasona Group Inc. (incumbent)
April
April
April
June
May
April
June
June
Oct.
June
Aug.
1971
2005
2006
2006
2007
2009
2009
2011
2011
2019
2019
43

Audit & Supervisory Board (as of June 30, 2021)
Executive Ofﬁcers (as of June 30, 2021)
Takeshi Shimazaki
Audit & Supervisory 
Board Member
Independent Auditor
Junichi Itoh
Audit & Supervisory 
Board Member, Outside
Shuhei Ishikawa
Senior Vice President
Group Executive, 
Electronics Business Group
Hiroshi Kurachi
Senior Vice President
General Manager, 
Sensor Div., 
Ceramic Products Business Group
Masanobu Inoue
Vice President
General Manager, 
Industrial Process Div., 
Process Technology Business Group
Iwao Ohwada
Vice President
General Manager, Advanced Device 
Components Div., 
Electronics Business Group
Hirofumi Sakamoto
Vice President
General Manager, Engineering Div., 
Ceramic Products Business Group
David Miller
Vice President
President, FM Industries, Inc.
Atsushi Matsuda
Senior Vice President
Group Executive, 
Energy Infrastructure Business Group
Hiroto Matsuda
Senior Vice President
Group Vice Executive, Process Technology 
Business Group, General Manager, 
High Performance Ceramics Div.
Hiroharu Kato
Vice President
General Manager, Business Strategy Dept. 
Global Sales & Marketing Div., Ceramic Products 
Business Group
Tatsumi Ichioka
Vice President
General Manager, Energy Storage Div., 
Energy Infrastructure Business Group, 
General Manager, Komaki Site
Hideki Shimizu
Vice President
President, 
NGK Electoronics Devices, Inc.
Takao Onishi
Vice President
General Manager, Electronics Components Div., 
Electronics Business Group
Tsutomu Nanataki
Senior Vice President
Group Executive, Corporate R&D, 
Development Committee Chair
Tadaaki Yamada
Senior Vice President
General Manager, Human Resources Dept., 
In Charge of General Affairs Dept. 
HR Committee Chair, General Manager, 
Osaka Branch
Atsushi Miyajima
Vice President
Group Executive, Corporate 
Manufacturing Engineering, 
Facilities Committee Chair
Ryo Ishihara
Vice President 
General Manager, ESG Management Dept., 
In Charge of Secretarial Office, 
General Manager, Tokyo Main Office
Kazushi Tada
Vice President
General Manager, Insulator Div., 
Energy Infrastructure Business Group
Jun Mori
Senior Vice President
Group Executive, Ceramic Products Business Group, 
General Manager, Nagoya Site
Akira Katoh
Senior Vice President
Group Vice Executive, Electronics Business Group, 
General Manager, New Metals Div., 
General Manager, 
Chita Site
Hiroyuki Shinohara
Vice President
General Manager, 
Corporate Planning Office, 
In Charge of New Business Planning Dept.
Mayumi Inagaki
Vice President
In Charge of Auditing Dept., 
Group Compliance Dept., Legal Dept., 
and Intellectual Property Dept.
Ryugo Takeda
Vice President
President, NGK Europe GmbH
Independent Auditor
Masayoshi Sakaguchi
Audit & Supervisory 
Board Member, Outside
Nobumitsu Saji 
Audit & Supervisory 
Board Member
Newly appointed
Attendance at Board of 
Directors meetings
100% (14/14)
Joins NGK
Appointed as vice president
Appointed as director and vice president
Appointed as director and senior vice president 
Appointed as Audit & Supervisory Board member
(incumbent)
March
June
June
June
June
1984
2013
2014
2015
2021
Joins NGK
Appointed as manager, Finance Dept.
Appointed as general manager, Auditing Dept.
Appointed as Audit & Supervisory Board member (incumbent) 
March
April
June
June
1982
2010
2015
2019
Attendance at Board of Directors 
meetings 100% (14/14)
Attendance at Audit & Supervisory 
Board meetings
100% (14/14)
Joins The Mitsubishi Bank, Ltd. (now MUFG Bank, Ltd.)
Appointed as executive officer, The Bank of 
Tokyo-Mitsubishi, Ltd. (now MUFG Bank)
Appointed as managing executive officer, The Bank of 
Tokyo-Mitsubishi (now MUFG Bank)
Appointed as managing director, The Bank of 
Tokyo-Mitsubishi (now MUFG Bank)
Appointed as managing director, The Bank of 
Tokyo-Mitsubishi UFJ, Ltd. (now MUFG Bank)
Appointed as senior managing executive officer, The Bank 
of Tokyo-Mitsubishi UFJ (now MUFG Bank)
Appointed as senior executive vice president, CFO and 
representative director, Nikon Corporation
Appointed as counselor, Nikon Corporation (incumbent)
Appointed as outside Audit & Supervisory Board member, 
The Hyakujushi Bank, Ltd. 
Appointed as outside director (Audit and Supervisory 
Committee member), The Hyakujushi Bank (incumbent)
Appointed as Audit & Supervisory Board member, NGK 
(incumbent) 
April
June 
May
June
Jan.
May
June
June
June
June
1975 
2002 
2005
2005
2006
2009
2011
2016
2017
2018
Attendance at Board of Directors 
meetings 100% (14/14)
Attendance at Audit & Supervisory 
Board meetings
100% (14/14)
Joins the National Police Agency
Appointed as chief of First Area Headquarters, Metropolitan 
Police Department
Appointed as chief of Akita Prefectural Police Headquarters
Appointed as chief Criminal Investigations, Osaka 
Prefectural Police Headquarters 
Appointed as chief of Osaka Prefectural Police Headquarters
Appointed as commissioner-general’s secretariat, 
National Police Agency
Appointed as deputy commissioner-general, 
National Police Agency
Appointed as commissioner-general, National Police Agency
Appointed as senior advisor, Nippon Life Insurance 
Company
Appointed as Audit & Supervisory Board member, NGK 
(incumbent)
Appointed as vice president, Japan Automobile Federation 
(incumbent) 
April
Feb.
Sept.
Jan.
Oct.
Jan.
Jan.
Aug.
May
June 
1980 
1999
2001
2003
2011
2013
2015
2016
2018
2019 
Attendance at Board of Directors 
meetings 100% (14/14)
Attendance at Audit & Supervisory 
Board meetings
100% (14/14)
44

Name
Age*
Years
in office
Reasons for appointment
Nomination and
Compensation
Advisory Committee
Business Ethics
Committee
Committee
Reasons for Appointment of Directors and Audit & Supervisory Board Members
(As of June 30, 2021)
Served as Representative Director and President from 2014, and has been serving as Representative 
Director and Chairman since April 2021. Has abundant experience at the Company and insights into 
business operations.
Has been serving as Representative Director and President since April 2021. Has ample experience 
at the Company, as well as a wealth of knowledge and personal contacts for business operations.
Has served as Representative Director and Executive Vice President since 2018 and has ample 
experience at the Company and knowledge in business operations.
Has been serving as Representative Director and Executive Vice President since 2020 and has ample 
experience at the Company, as well as deep knowledge in project management and manufacturing 
technology.
Has ample experience at the Company and knowledge in business operations.
Has abundant knowledge and experience in business operations at the Company.
Possesses a wealth of experience and achievements in the legal community, and international 
insight. Has been offering suggestions to the Company’s business operation and properly overseeing 
the management of the Company.
Has accumulated insight through research and development and product commercialization at operating 
companies, and through research via industry-academia-government collaborations. This insight helps her 
appropriately offer suggestions to the Company’s business operation and oversee the management of the Company. 
Has extensive knowledge of technical fields including ICT, as well as experience leading large 
organizations. With his insights and experience, has been offering suggestions to the Company’s 
business operation and properly overseeing the management of the Company.
Recognized for his ability to contribute to strengthening governance by auditing the management of 
the Company based on ample experience and insights on business operations and compliance.
Engaged in management at financial institutions and operating companies for many years, his 
wealth of experience and expertise as a corporate management specialist make him well-suited to a 
role in which he will contribute to stronger corporate governance at NGK.
Has extensive experience in public administration and management of large organizations. Recognized for 
his ability to apply his experience towards management-related auditing, providing a legal compliance 
and risk management-focused perspective that contributes to increased corporate value for NGK.
Recognized for his ability to apply his experience towards the performance of management-related 
auditing based on his extensive experience and knowledge in financial accounting and operational 
auditing, thus contributing to increased corporate value for NGK.
Corporate Governance
64
60
63
61
61
56
75
62
74
62
61
70
63
7
1
7
6
12
Newly
appointed
10
4
2
Newly
appointed
2
3
2
〇
〇
ー
ー
ー
ー
〇
〇
〇
ー
ー
ー
ー
ー
ー
〇
ー
ー
ー
〇
〇
〇
ー
ー
〇
〇
Taku Oshima
Shigeru Kobayashi
Hiroshi Kanie
Chiaki Niwa
Ryohei Iwasaki
Hideaki Shindo
Hiroyuki Kamano
Emiko Hamada
Kazuo Furukawa
Nobumitsu Saji
Takeshi Shimazaki
Junichi Itoh
Masayoshi Sakaguchi
Expertise of Directors
(As of June 30, 2021)
Name
Independent
outside
directors
Field of experience
Specialized knowledge
〇
〇
〇
〇
〇
〇
〇
〇
〇
〇
〇
〇
〇
〇
〇
〇
〇
〇
〇
〇
〇
〇
〇
〇
〇
〇
〇
Overall 
management
Overseas 
business/
international
experience
Marketing
〇
〇
〇
〇
〇
〇
〇
〇
〇
Finance
Legal
compliance
HR/labor
Manufacturing 
technology 
R&D
〇
〇
〇
〇
〇
〇
〇
〇
TICT
Environmental/
energy 
conservation
Taku Oshima
Shigeru Kobayashi
Hiroshi Kanie
Chiaki Niwa
Ryohei Iwasaki
Hideaki Shindo
Hiroyuki Kamano
Emiko Hamada
Kazuo Furukawa
*Age as of June 30, 2021
Note: Managerial experience: At time of appointment (June 30, 2021), has experience running large organizations (business group, general manager, head of multiple divisions) or 
 
has served in upper management of Group companies.
45

Policies for Determining Remuneration of Directors
The remuneration 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. NGK reviews the level and composition, etc. of 
remuneration, etc. as necessary to determine whether they are 
appropriate in view of this purpose. NGK also endeavors to 
ensure the transparency and fairness of remuneration 
governance.
 
The remuneration of directors (excluding outside directors) 
and corporate officers consists of the following three 
components: basic remuneration, which is a fixed annual 
amount in accordance with their position; a performance-linked 
bonus that varies depending on business performance each 
fiscal year; and stock-related remuneration, which is designed 
to raise sensitivity toward the Company’s stock price, share 
with shareholders not only the benefits of a rise in the stock 
price but also the risks associated with a fall in the stock price, 
and motivate directors and corporate officers to enhance 
corporate value over the medium-to-long-term through 
appropriate corporate management.
 
NGK does not pay any performance-linked bonus or stock 
compensation-type stock options to outside directors and 
Audit & Supervisory Board members and only pays fixed 
annual basic remuneration from a perspective that emphasizes 
independence because they assume roles in supervising and 
auditing management. 
 
NGK emphasizes the stability and enhancement of 
medium-to-long-term business performance, and has designed 
the variable part of remuneration so that the sum of the 
performance-linked bonus amount and the conversion value of 
stock compensation-type stock options accounts for an 
appropriate proportion of the total amount of remuneration, 
etc. The total amount of remuneration, including basic 
remuneration, is based on data from a reliable external 
organization, and is set according to the position and rank of 
the recipient, while taking into consideration the level of 
remuneration according to the size of the company.
 
The Nomination and Compensation Advisory Committee is 
composed 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; proposes the range of remuneration for all 
directors and Audit & Supervisory Board members; and 
proposes the amounts and details of individual remuneration 
for each director and corporate officer. The committee then 
reports its decisions on these matters to the Board of Directors. 
● Consolidated performance indicators for fiscal 2021: net sales, operating income, net income, and return on invested capital*
● Consolidated performance results for fiscal 2020: net sales, operating income, and net income
Short-term 
perspective
Medium-to-
long-term 
perspective
Performance-linked bonus calculation method (Fiscal 2021)
The following indicators are used in calculating the performance-linked bonus.
*NGK version ROIC calculated based on operating income and business assets (sales receivables, inventories, and fixed assets)
● Medium-to-long-term performance targets established under the NGK Group Vision: operating income
● Creation of new products and businesses – Keep Up 30
● Initiatives to reduce CO2 emissions
(Each allocated item varies between -100% and 100%, as a result, the actual amount of performance-linked bonuses paid
fluctuates within a range of -100% to 100% of the basic bonus amount.)
Basic bonus
amount
Short-term perspective
Percentage returned on
invested capital (100%)
Increase/decrease from
previous fiscal year
results (100%)
Amount paid
Medium-to-long-term perspective
Percentage achieved of
medium-to-long-term
performance targets (100%)
Percentage achieved on
important issues for the
current fiscal year (100%)
Individual
evaluation
(100%)
Achievement of return 
on invested capital
←　-100 to +100％　→
Change from the previous
 year’s results
←　-100 to +100％　→
Achievement of medium-to-
long-term performance targets
←　-100 to +100％　→
Achievement level of priority issues 
in the current fiscal year
←　-100 to +100％　→
Personal assessment
←　-100 to +100％　→
Overview of stock options
● Exercise price: 1 yen/share
● Number of stock options granted according to position
● Condition for exercise of rights: Rights are vested for five years, in principle, beginning on the day when one year has elapsed 
 after the recipient’s retirement as an officer of NGK.
Basic remuneration
Fixed annual remuneration
corresponding to position
Performance-linked bonus
Bonus corresponding
to annual business performance
Stock compensation-type stock options
Same benefits and
risks as shareholders
+
Directors: Annual amount not exceeding 800 million yen
Directors: Annual amount not exceeding 200 million yen
+
Composition of remuneration
Audit & Supervisory Board members: 
Annual amount not exceeding 100 million yen
46

Corporate Governance
Management Succession Planning
In December 2018, the Board of Directors approved the NGK 
Group Chief Executive Officer Succession Plan, which 
establishes the required qualities, development policies, 
selection procedures, and other items for chief executive 
officer successors. Based on this, the President provides the 
Nomination and Compensation Advisory Committee with a 
planning progress report each year, and its appropriateness is 
reviewed.
Training Policies for Executives
Internal Control Systems
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 at each operating division. 
Moreover, NGK has 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 with respect to business activities and corporate behavior 
to ensure it remains a company that is beneficial to society, even 
in the pursuit of its economic goals. 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 comprises managers from NGK divisions. The 
Business Ethics Committee handles matters of improper acts 
and legal violations involving NGK executives, and the ensuring 
of compliance with competition laws and overseas 
anti-corruption laws.
 
Please note that at a Board of Directors meeting in April 
2021, members adopted an amendment to the “Resolution for 
the Development of Systems to Ensure the Appropriateness of 
Operations.”
Amount of Remuneration for Directors and Audit & Supervisory Board Members
Taking into account that directors and Audit & Supervisory 
Board members assume the duty of care of a good manager as 
a fiduciary of NGK, NGK has established training policies to 
provide the following opportunities to improve their skills and 
knowledge so that they can adequately fulfill their respective 
responsibilities as experts in management or as supervisors of 
business execution.
1. Training for internal officers relating to the Companies Act, 
Financial Instruments and Exchange Act, competition laws, 
and corporate governance and compliance.
2. The provision of individual explanations from the relevant 
divisions to outside directors/Audit & Supervisory Board 
members, mainly relating to the items brought up at the 
Board of Directors’ meetings as well as the periodic 
provision of information to, and opportunities to exchange 
opinions with, outside directors/Audit & Supervisory Board 
members on the business environment and other issues.
 
Directors (excluding Outside Directors)
Outside Directors
Audit & Supervisory Board Members
(excluding Outside Audit & Supervisory Board Members)
Outside Audit & Supervisory Board Members
591
39
59
26
425
39
59
26
123
–
–
–
42
–
–
–
11
3
2
2
Director category
Fixed remuneration
Performance-linked
remuneration
Total remuneration by type (million yen)
Stock options
Total remuneration
(million yen)
Applicable
directors
(people)
Taku Oshima
68
26
7
103
Name
Director
Director
category
Submitting
companies
Company
category
Fixed remuneration
Performance-linked
remuneration
Total remuneration by type (million yen)
Stock options
Total
remuneration
(million yen)
Remuneration of Directors and Audit & Supervisory Board Members
Directors Receiving Total Remuneration of ¥100 Million or More
(Fiscal 2020)
(Fiscal 2020)
47

77
Number of Cross-Shareholding Companies
0
20
40
60
80
100
2021/3
2017/3
2018/3
2019/3
2020/3
(Companies)
79
81
84
86
Audit Structure
Status of Cross-Shareholding
At NGK, we conduct separate Audit & Supervisory Board 
audits, accounting audits, and internal audits. Each of the main 
groups overseeing these audits—Audit & Supervisory Board 
members, accounting auditors, and internal auditing 
department members—engages in regular information 
exchange related to auditing policy, planning, results, and other 
areas pertinent to improving auditing effectiveness and 
efficiency.
 
NGK’s Audit & Supervisory Board is comprised of two 
full-time members and two outside members. They are 
supplemented by one dedicated staff member who possesses 
the appropriate knowledge, skills, and experience to assist 
them.
 
Approval of the Audit & Supervisory Board is obtained with 
regard to staff reassignment, evaluations, and other decisions 
in order to more fully ensure that such decisions are 
independent of directors and that the instructions of the Audit 
& Supervisory Board carry more force.
 
Internal auditing is carried out by the 15 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 auditing is performed on an as-needed basis 
within the NGK Group by departments with specialized 
knowledge in these areas.
 
As of July 2021, accounting audits are overseen by three 
certified public accountants from Deloitte Touche Tohmatsu 
LLC. They are accompanied by 16 other certified public 
accountants and 35 assistants.
Policy on Cross-Shareholdings
NGK holds shares of listed companies that contribute to the 
NGK Group’s long-term business development as 
cross-shareholdings, primarily in order to maintain and 
strengthen business relationships. In addition, NGK holds the 
shares of each company in the Morimura Group, which was 
established by the same founders of NGK, for the mutual 
benefit of enhancing management quality, as the Morimura 
Group brand forms a part of NGK’s corporate value through its 
philosophy and heritage. As all cross-shareholdings are a part 
of the asset portfolio, they are positioned as assets to 
supplement the amount of liquidity considered necessary in the 
business plan. NGK constantly strives to reduce the scale of 
cross-shareholdings from the perspective of capital efficiency. 
Furthermore, the scale of cross-shareholdings may fluctuate 
due to factors including changes in overall business trends and 
risks, financial conditions, and the status of NGK’s business 
relationship with each business partner. Regarding the specific 
stocks held, at its Board of Directors’ meeting, NGK regularly 
reviews the appropriateness of the continuous holding of 
shares as cross-shareholdings along with the capital policy, by 
determining the significance of holding from the business 
relationship, the safety of ratings and so forth, and the 
efficiency of dividend yields and so forth. On the other hand, 
when comparing cross-shareholdings to NGK’s cost of capital, 
evaluations based solely on shares are not conducted. Instead, 
ROIC management is conducted for each business with 
differing risks and expected returns, and cross-shareholdings 
are evaluated after being included in each business’s balance 
sheet. After verification, in fiscal 2020, four specified equity 
securities held for investment purposes were sold for a total of 
2.033 billion yen.
43,277
Reported Cross-Shareholdings Balance
0
10,000
20,000
30,000
40,000
50,000
60,000
2021/3
2017/3
2018/3
2019/3
2020/3
(Millions of yen)
33,164
50,800
52,274
47,775
48

Hiroyuki Kamano
Outside Director
Leadership from the top is 
key to realizing the 
NGK Group Vision
The first time I heard about the NGK Group Vision was at a meeting of 
the Board of Directors in December 2019. It was still in the early 
stages of development, but I remember saying that it should 
emphasize input from young employees, as they are the future of the 
company, connect the Group Vision with the NGK Group Philosophy 
announced that year, and make sure carbon neutrality is a key focus.
 
After further work and refinement, the resulting NGK Group Vision 
was exceptionally good. With all of the changes that are taking place 
in society, like the rapid rise of electric vehicles (EV), I had a vague 
sense of unease about the future of the company, that would it be able 
to continue 20 or 30 years from now. However, this revolutionary 
Group Vision tackles these concerns head-on and articulates a clear 
direction for the future.
 
The challenge for us now is to make the NGK Group Vision a 
reality. Actually reaching a point by 2050 where 80% of all sales are 
from carbon neutrality and digital society-related business will be an 
extremely daunting task. The NGK Group has a large number of new 
products and products in development that hold promise for 
addressing social issues, and I believe that achieving the numerical 
targets of the NGK Group Vision is not a mere fantasy. But this all 
crucially depends on NGK putting in place the basic mechanisms 
necessary for converting its business structure.
 
Starting this fiscal year, a greater percentage of director 
compensation is tied to corporate performance, and the inclusion of 
CO2 emissions reduction targets into performance targets represents a 
good first step towards business structure conversion. Yet 
implementation of ESG initiatives will incur excessive costs that are at 
odds with the goal of business revenue generation. Overcoming this 
will require a clear prioritization of issues to be addressed and a 
thorough, Group-wide entrenchment of an ESG-focused mindset. 
This, in turn, requires leadership from the top, and I have great hopes 
for new President Kobayashi in that regard.
 
The new change in composition of the Board of Directors allows 
deeper debate and discussion. Now I and the other outside directors 
can play a more active part in the Board’s debate and discussion, 
helping to facilitate a frank exchange of ideas and opinions that will 
contribute to realization of the NGK Group Vision.
 
Also, prior to the presidential transition which took place in April 
2021, the names of candidates were presented to the Nomination and 
Compensation Advisory Committee well in advance and provided 
opportunities to discuss them. This made for a more transparent 
process compared with previous presidential transitions. Moving 
forward, I will continue to use my outsider’s perspective to promote 
even greater governance reform.
Corporate Governance
Comments from Outside Directors
Topic: Towards realization of 
the NGK Group Vision
49

Emiko Hamada
Outside Director
Resolutely pursuing 
commercialization 
one product at a time
A medium-to-long-term vision is an important goal that we 
share with employees and other diverse stakeholders. That is 
why I feel it is all the more difficult to effectively phrase this 
vision. And, needless to say, there are not many companies 
that have publicly announced goals extending all the way out 
to 2050. From that standpoint, the content of the NGK Group 
Vision provides an expanded, future image looking towards 
2050. NGK has always been strong in environmental areas, but 
it is to be praised for setting goals that boldly incorporate the 
digital domain as well. Transforming a business mix built 
primarily around products aimed at internal combustion engine 
vehicles into a business mix centered on carbon neutrality and 
digital society-related business is a daunting challenge.
 
I offered my opinion on each and every sentence of the 
NGK Group Vision over the course of the entire drafting 
process. My view is that NGK will never communicate anything 
if it maintains such a cautious and inward-focused corporate 
culture. I feel that I was able to be deeply involved in the 
formulation of the NGK Group Vision.
 
As NGK now works to concretely incorporate this Group 
Vision into its business, it is essential that NGK become an 
“open company” that works not only within the Group but also 
with external human resources and companies to develop new 
fields. The NGK Group Vision reveals a readiness and 
determination to do just that. I feel that increasing interactions 
and communication with external stakeholders will, as a matter 
of course, lead to a greater emphasis on diversity in the NGK 
Group.
 
At the same time, however, it is essential that NGK not 
overemphasize new product development. This is particularly 
true with regard to carbon neutrality-related products, for which 
the marketplace is already crowded with competition. NGK’s 
EnerCera® lithium-ion rechargeable batteries have been well 
received on the market, but they have not yet generated large 
sales. When development targets keep changing one after 
another, it brings into question just how flexibly NGK can 
adapt.
 
In that sense, the “New Value 1000” goal to attain 100 
billion yen of sales in newly launched business in 2030 is 
extremely ambitious. But, regardless of how difficult it may be, 
the only way to achieve it is by resolutely pursuing 
commercialization, one product at a time. And I believe that the 
employees of the NGK Group have the tenacity required to 
achieve that goal.
Kazuo Furukawa
Outside Director
Using CO2 emissions reductions as 
a gauge of commitment to the 
NGK Group Vision
I was involved right from the start of discussion and planning for 
the NGK Group Vision, and one point of feedback I offered was 
that it should be more specific. I feel that the resulting Group 
Vision is extremely good. As the details of the vision began 
taking shape, the global trend toward carbon neutrality and 
digital society accelerated, and we were able to align our vision 
with this trend. 
 
Making 2050 the target year and then back-casting to figure 
out targets for 2025 is an appropriate approach. Quantifiable 
business targets like 600 billion yen in sales and 90 billion yen in 
operating income are easy to understand and easy to share 
with all employees. These targets are daunting, but I think they 
create a positive sort of pressure that will motivate employees.
 
One plan for achieving carbon neutrality involves switching 
over to different energy sources, but this comes with a lot of 
challenges, which will require infrastructure that will take a long 
time to put in place. The Fifth Five-Year Environmental Action 
Plan, which was released at the same time as the NGK Group 
Vision, commits the NGK Group to reducing its annual CO2 
emissions between fiscal 2019 and fiscal 2025 from 850,000 
metric tons to 550,000 metric tons. This is the sort of target that 
cannot be achieved with anything less than total commitment. I 
want NGK to go after this goal with the realization that it will 
serve as a gauge of the Group’s commitment to its Vision.
 
Getting to the point where 80% of all sales in 2050 will 
come from carbon neutrality and digital society-related 
business will also be an extremely tough task. NGK will not be 
able to get there by simply changing our existing product 
models. It will only be possible through business that embodies 
the NGK Group Slogan: “Surprising Ceramics.” Meanwhile, 
there is also the possibility that the expected decline in demand 
for internal combustion engine vehicle-related products will 
come faster than anticipated. This is a risk the Board of 
Directors will carefully and thoroughly discuss how to manage.
I look forward to the innovative ideas and hard work of everyone 
in the NGK Group as they pursue the NGK Group Vision, boldly 
tackling the challenges that await on the journey into NGK’s 
next 100 years.
50

Compliance
Vice President
Mayumi Inagaki
Compliance also plays a key role in realizing the NGK 
Group Vision announced in April. The NGK Group Vision 
includes “Five Transformations” which we will implement 
in order to convert our business structure. When we 
convert our business structure, this will enable us to move 
into new markets where we will likely face increased 
compliance violation risks, such as unintentionally 
violating laws and regulations within an unfamiliar legal 
and business environment or going too far when building 
new business relationships. Thus, to realize the NGK 
Group Vision, it is crucial to make appropriate efforts to 
ensure compliance with the NGK Group Philosophy, Code 
of Conduct, etc., in any and all business environments.
 
Also, the focus of compliance varies according to the 
functions of the target location; for example, the focus at 
a production base would include quality, health and 
safety, and environment, while the focus at a sales site 
would include competition law and anti-corruption 
practices. The risk of compliance violation also varies by 
the country or territory in which we operate. We are 
developing and improving a compliance structure that not 
only NGK but also NGK Group companies can 
independently implement, allowing them to create rules, 
provide training, etc., on a site-by-site basis in 
accordance with local conditions.
Vision and Compliance
In addition to the NGK Group Vision, new “NGK Group 
Basic Guidelines for Compliance Activities” were also 
released in April. The Basic Guidelines serve to codify in 
writing the NGK Group’s basic stance on, and approach 
to compliance activities. Given that the NGK Group 
conducts business all over the globe, it is essential that 
we have in place a compliance structure which aligns 
with international norms. The Basic Guidelines 
incorporate six compliance elements that are standard 
worldwide, including commitment and message from 
company top management, education and training, and 
monitoring. It was developed using other major 
guidelines, both Japanese and international, such as the 
US Department of Justice’s “Evaluation of Corporate 
Compliance Programs,” as a reference. Traditionally, 
competition laws-related rules and other such rules were 
established separately of one another; now, however, for 
the first time the Basic Guidelines on Compliance 
Activities will serve as the central “spine” supporting a 
unified approach to compliance activities. The Basic 
Guidelines are remarkably innovative in terms of its 
content, focusing on appropriate implementation of 
compliance to accommodate changing trends in society 
and the law.
 
As we convert our business structure in order to 
realize the NGK Group Vision, the business practices of 
the NGK Group will move beyond simply selling 
“products” to selling “solutions” that offer new value. In 
order to appropriately adapt to the changes in business 
environment that will come with this, we will monitor 
changing international norms with regard to compliance 
and will foster an even greater compliance-focused 
mindset among everyone who works in the NGK Group.
 
Compliance is what ensures that everyone can go 
about their job in the business world with the utmost 
confidence. Moving forward, our focus on compliance will 
only grow stronger as we cultivate a shared attitude 
throughout the NGK Group that “compliance is key.”
NGK Group Basic Guidelines for 
Compliance Activities
Six elements
of compliance
Continuous review
Disciplinary action
Monitoring
Whistleblowing
System
Education and
training
Communication from
company leadership
Interview with NGK’s Vice President in Charge 
Compliance as an indispensable part 
of realizing the NGK Group Vision
As a vice president, I am responsible for overseeing four 
departments, including the Group Compliance 
Department, and I serve as the vice-chair of the 
Compliance Committee and as the competition law chief 
compliance officer.
 
When checking the status of Group compliance, I 
focus on the appropriateness of each initiative being 
undertaken. That is, I look at whether the activity is being 
appropriately carried out in line with laws and regulations, 
company rules, etc. Beyond that, I look at compliance in 
the broader sense of corporate ethics to see if the activity 
comports with the expectations of external stakeholders 
and, by extension, society. As expressed in the NGK 
Group Philosophy, “Social trust is our foundation,” and a 
company which loses the trust of society cannot survive. 
Appropriate compliance is the most fundamental 
component of corporate activity.
51

Observing Competition Laws and Other Laws 
and Regulations Pertaining to Business Transactions
In order to ensure strict observance of laws, regulations, and 
corporate ethics within the Group, we have established the 
Compliance Committee, and under this we have established 
the Compliance Activity Promotion Subcommittee to serve as 
the committee body that ensures the proper implementation of 
the Compliance Committee’s decisions.
Compliance Promotion Structure
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, which are strictly enforced by the NGK 
Group both in Japan and its overseas locations. 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. Furthermore, since fiscal 2015, 
we have contracted PwC Advisory LLC (hereinafter, “PwC”) as 
our independent compliance professional. PwC is engaged to 
annually review the implementation status of the NGK Group’s 
competition law compliance program per the Competition 
Laws Compliance Rules as well as assessing the overall 
oversight and reporting structures in place for NGK Group 
companies, both in Japan and overseas locations. On top of 
this, starting in fiscal 2017, PwC has also conducted interviews 
with the directors overseeing NGK’s various business groups in 
order to: 1) assess the tone of each director’s approach toward 
competition law compliance; and 2) to further enhance their 
awareness of these efforts. The results of these reviews are 
being leveraged for a variety of purposes, such as operating 
and improving the competition law compliance program.
Compliance Promotion Structure
Establishment of the global compliance system
With the aim of building a group-wide foundation for an effective 
compliance scheme, the Group Compliance Department 
conducts education on compliance at each NGK site.
Quality Compliance
Based on the lessons we learned from dealing with issues of 
non-conformity in the testing procedures of insulators and 
related products in 2018, we are strengthening ongoing top 
management-led quality compliance activities, Quality 
Committee direct guidance, and other initiatives. We are also 
working to improve corporate culture through a variety of 
efforts, including ensuring senior management and employees 
receive thorough quality-related training.
Conducting Anti-Bribery Training
Besides to having in-house lecturers provide job grade-specific 
training to NGK employees, in fiscal 2019 we began training to 
employees belonging to sales departments in which outside 
lawyers give interactive lectures and lead group discussions on 
case studies. In addition, we also arranged for attorney-led 
seminars and other training at all Group companies outside 
Japan.
Corruption Prevention Structure
The NGK Group Code of Conduct states that “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 fiscal 2015, 
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. Further, in fiscal 
2017 our Auditing Department began a review of overseas 
money transfers and entertainment expenses.
President
Compliance Committee
All divisions
Group companies
Chair: Executive Vice President
Vice-Chair: Vice President in charge of, Group Compliance Department
Members: Executive Vice President, Group Executives, etc.
Compliance Activity Promotion Subcommittee
● Administrative Office: Group Compliance Department
● Members: Department Managers
Viewing compliance as the foundation of CSR, the NGK Group positions enhancing trustworthiness as 
the most important initiative, and takes concrete measures to disseminate compliance awareness 
among employees and ensure that we abide by international norms and the laws and regulations of all 
countries and regions. 
52

Helpline
We have established a helpline to receive inquiries and reports 
from employees aimed at curtailing and preventing activities 
contrary to a spirit of the NGK Group Code of Conduct and to 
facilitate the quick resolution when issues occur. Each Group 
company outside Japan has its own helpline. Our company 
rules guarantee protection of those seeking advice or reporting 
issues.
Hotline
We have established a hotline as a whistleblowing system for 
responding to fraud and legal infractions committed by senior 
management of NGK, and competition law and anti-corruption 
law-related violations. The hotline is taken care by outside 
lawyers, with issues handled by the Business Ethics 
Committee, composed mainly of outside directors, who report 
directly to the Board of Directors.
 
With consideration for the circumstances in each country, 
we are continuing to set up hotlines at Group companies 
outside Japan to respond to fraud and legal infractions 
committed by senior management. Hotlines have been set up 
at all Group companies outside Japan for matters related to 
competition laws and anti-corruption law-related violations. 
Whistleblowing System
FY2018
FY2019
FY2020
75
55
28
Number of Helpline Consultation Cases (NGK)
Board of Directors
Compliance Committee
Helpline Secretariat Administrative Office
Report helpline activities
Recommendations, monitoring
Report helpline activities
Fact-finding, corrective action, reoccurrence prevention
Business Ethics Committee
Recommend formulation of corrective actions to
Board of Directors and monitor status of implementation
External contact (lawyers)
Internal contact (Group Compliance Dept., others)
Person reporting or seeking consultation
Organization of Whistleblowing System
Observer (lawyer)
Helpline
● Unlawful conduct that violates laws, company rules, 
 and the Code of Conduct that are difﬁcult to consult with supervisors
Hotline
● Fraud and legal violations involving senior management of NGK 
 (including instructions and commands)
● Violations of competition laws and regulations combating bribery of 
 foreign ofﬁcials
Anti-Harassment Measures
Our measures to combat harassment in the workplace include 
providing anti-harassment training to all executives and 
employees in NGK and NGK Group companies in Japan 
(including contract employees and temporary workers).
 
Since fiscal 2017, we have held anti-harassment training 
sessions aimed at managers of Group companies in Japan, 
and we have maintained a schedule that seeks to ensure the 
rest of the employees receive anti-harassment training within 
four years. As a countermeasure to COVID-19, in fiscal 2020 
we offered online video training. There were 7,249 participants 
in power harassment training and 7,730 participants in sexual 
harassment training. The aim of training is to contribute to a 
better workplace environment by providing both managers and 
employees with a proper understanding of what harassment is 
and how to prevent it.
Compliance
53

Formulation of Basic NGK Group IT Security Standards
Privacy Policy and Organization for Personal Information Protection
The NGK Group has established internal rules in an effort to 
ensure strict handling and management of personal information 
obtained from customers. In fiscal 2015, NGK formulated and 
published our Basic Policy on the Proper Handling of Specific 
Personal Information in response to the enforcement of the 
Japan’s Act on the Use of Numbers to Identify a Specific 
Individual in Administrative Procedures. Moreover, our policies 
are in full compliance with the revised Act on the Protection of 
Personal Information, which came into effect in Japan on May 
30, 2017.
The rapid advance in information communication technologies 
and devices has made the quest for consistent IT security on a 
Group-wide level an urgent concern. Thus in fiscal 2010 we 
formulated the NGK Group IT Security Standards with the goal 
of developing an IT security structure based on commonly 
shared Group standards and enhancing IT security.
 
Every year, each Group company drafts action plans for the 
enactment of countermeasures in an attempt to systematically 
strengthen security. Through these action plans, NGK confirms 
initiatives at each Group company and provides guidance as 
necessary.
Ensure IT Security Against Cyberattacks
The NGK Group has built systems for protecting against and 
detecting cyberattacks. We are making the necessary capital 
investment and infrastructure upgrades so as to further 
strengthen the systems’ detection functions in fiscal 2021. We 
plan to carry out the necessary document enhancement and 
structural reinforcement to ensure we are prepared to deal with 
an IT security incident and can restore our IT systems. 
Following completion, annual training is planned that will teach 
employees how to handle IT security incidents.
Security
Training for newly hired employees
Number of participants: 147
(participation rate: 100%)
Training for newly promoted supervisors
Number of participants: 118
(participation rate: 100%)
Training for newly promoted managers
Number of participants: 55
(participation rate: 100%)
E-learning
Number of participants: 5,320
(participation rate: 100%)
Note: Excluding employees who were away on maternity leave, childcare leave, 
 
long-term business trips, etc.
IT Security Training
Training sessions listed at the right are conducted throughout 
the year to ensure strict adherence to IT security among all 
employees.
 
Training for newly hired employees and newly promoted 
supervisors and managers are offered to NGK employees while 
e-learning is offered to NGK employees and employees of 
some Group companies in Japan.
Information Security Governance, Security Measures
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, as well as 
made aware of the need to contact the General Affairs 
Department and ICT Department if the device is lost, infected 
with a computer virus or otherwise compromised. Also, under 
the rules of employment, employees are subject to disciplinary 
action if their improper use of an information device results in 
the leaking of confidential information or some other result that 
significantly impacts the company.
 
Meanwhile, personnel from NGK’s ICT Department visit 
several Group companies each year to conduct on-site checks 
and provide guidance on their implementation of IT security 
measures. In fiscal 2020, 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 with 12 Group companies in order to share with 
them the IT security enhancement policies and measures 
implemented by the Head Office, and a survey was conducted 
to ascertain the state of IT security-related device maintenance 
and operations at each company.
 
In order to further encourage IT security-related initiatives, a 
clearly defined committee body is scheduled to be established 
in fiscal 2021 to discuss related issues and measures.
Basic NGK Group Information Security Policy
https://www.ngk-insulators.com/en/info/policies/
Reference URL
Privacy Policy
https://www.ngk-global.com/privacypolicy/ngk-and-group-companies.html
Reference URL
54

Risk Management
President
Compliance Committee
Risk Management Framework Chart
Quality Committee
Environment, Industrial Safety & Health Committee
HR Committee
Central Disaster Prevention and Control Headquarters
Risks from existing activities are collected and 
made into a list
Each risk is evaluated along a standardized 
evaluation axis, and serious risks are identiﬁed
Chair: President
＜Serious crisis control situations＞
Response Committee
Standard crisis management
Headquarters chief: President
＜BCP situations＞
BCP Countermeasures Headquarters
ESG Committee deliberation is 
followed by a report to the Board of 
Directors and Executive Committee
The NGK Group uses the above results to create a 
risk heat map
Degree of impact
Frequency of occurrence
5
4
3
2
1
10
12
28
29
28
1
3
8
17
30
30
2
0
0
9
11
25
3
Chair: Executive Vice President
Chair: Executive Vice President
Chair: Executive Vice President
Chair: Senior Vice President
Headquarters chief: Vice President
Approach to 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 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.
Risk Identification Process
All risks discovered through the standard risk management 
process, which have the potential to affect the operational or 
financial situation of the Group are collected and reevaluated in 
order to identify any which may be serious risks. The ESG 
Committee will then deliberate and designate those risks that 
need to be managed by the Group as a whole.
Risk collection and list-making
Evaluation of risks
Deliberation by 
senior management
Newness of risk
Scope of risk
Existing risk management activities
CSA questionnaire, compliance 
awareness survey
1
Special risk examination sheet
2
Information relevant to the 
creation of securities reports
3
Information relevant to the 
creation of integrated reports
4
Risk list
55

Summary
Risk
Response
● Inability to achieve adequate results with the input received due to increasingly 
complicated technological competition
● A total of 300 billion yen will be set aside 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)
● Set a target of 100 billion yen in sales from new products and new businesses by 2030
1
Risks, Risk Summaries, Risk Responses
2
3
4
5
6
All operations
● Demonstrations, terrorism, war, infectious or communicable disease, and other 
unforeseen matters
● Construct globally distributed, alternative systems
　 Ceramic Products Business
● Drop in demand for NGK Group products due to decline in demand for internal 
combustion engine vehicles
● Drop in market share due to rising competition from Chinese market
● Inability to recover prior investment due to downturn in business, delayed timing of 
regulations, or other factors
● Compensate for drop in demand by increasing number of new and high-performance products in 
line with stronger exhaust regulations
● Strengthen competitiveness via technical responsiveness that anticipates environmental 
regulations, and via supply stability
● Respond appropriately to automaker planning and changing business conditions, and then make 
revisions to capital investment planning
1
　 Legal compliance-related risks
● Decline in NGK Group’s reputation due to actions in opposition to society’s 
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
● The Business Ethics Committee, which comprises outside directors and compliance ofﬁcers, 
investigates serious improprieties or legal/regulatory violations that could have a signiﬁcant 
impact on management, and recommends preventive and corrective measures.
● Reducing the possibility of compliance violations through a whistleblowing system
1
　 Process Technology Business
● Deterioration in performance and ﬁnancial status due to declining demand for 
semiconductors
● Delayed responsiveness to customer needs
● Emergence of innovative semiconductor manufacturing process
● Drop in market share due to growth of competition in kilns for lithium-ion battery 
cathode materials and electronic components
● Work together with direct customers who manufacture semiconductor manufacturing equipment, 
and make revisions to equipment capacity and personnel and production systems, etc., where 
appropriate
● Carefully monitor semiconductor manufacturing process trends and revise production systems 
where appropriate to ensure quick response to changes in demand
● Carefully monitor customer trends and pursue production system innovation where appropriate to 
ensure quick response to changes in demand
2
　 Human rights and safety-related risks
● Human rights violations in the Group’s business activities
● Employee occupational hazards, illness, or physical and mental health problems
● Formulation of the NGK Group human rights policy
● Undertake human rights due diligence via HR Committee
● In accordance with NGK Safety and Health Policy, identify serious hazard risks and use risk 
assessment to facilitate strengthening of preventative measures
● Follow up on employees who work long hours, and conduct job grade-speciﬁc mental 
health education
2
　 Electronics Business
● Sudden drop in base station and data server demand
● Inability to develop new technology or release products compatible with customer 
technology innovations
● Carefully monitor customer trends and pursue production system innovation where appropriate to 
ensure quick response to changes in demand
● Carefully monitor customer trends and pursue timely technological development
3
　 Quality-related risks
● Quality-related risks such as loss of trust or proﬁts, or contraction in growth, due to 
serious market complaint, contractual violation, or other unsatisfactory operations
● Have Quality Management Department perform monitoring of 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
● Company-wide deployment of quality risk elimination process activities
3
　 Energy Infrastructure Business
● Change in energy policies overseas
● Capital investment cutbacks by power companies in Japan
● Trends among competitor companies and products
● Delay in timing of market expansion for large-capacity and long-life batteries
● Spread of competitors’ products, such as lithium-ion batteries, that use innovative 
technologies
● Carefully monitor energy policy trends in each country and revise production systems where 
appropriate to ensure quick response to changes in demand
● Strengthen competitiveness via technical responsiveness and supply stability
● Carefully monitor customer trends and revise production systems where appropriate to ensure 
quick response to changes in demand
● Strengthen partnerships with leading overseas companies
4
● Formulation of the NGK Group Environmental Vision
● Begin looking into disclosing information on risks and opportunities based on recommendations 
from the Task Force on Climate-related Financial Disclosures (TCFD)
● Development and introduction of products and services that contribute to the realization of a 
carbon-neutral society
● Establishment of a production system that enables alternative production
● Promote business continuity plan (BCP) for entire Group
● Deterioration in business performance due to additional costs incurred by future 
international GHG regulations, environmental taxes, carbon taxes, etc.
● Operational decline due to global warming-caused sea level rise, increased size and 
magnitude of typhoons, increased frequency of local torrential rains, etc.
● Deterioration in business performance due to shutdown of production following 
major disaster, ﬁre, or other serious incident or accident
● Serious damage to facilities at major production bases due to disasters, ﬁres, or 
other serious incident or accident
● Decline in operations and negative impact on product manufacturing and sales due to 
emergence and spread of major infectious disease, such as inﬂuenza or COVID-19 pandemic
● 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
● Rising production costs due to rise in prices of certain materials and equipment
● Keep production close to local demand centers, perform ﬁnancing in local currency, and optimize 
purchasing according to currency exchange situation
● Hedge risks with forward foreign exchange contracts and other ﬁnancial instruments
● Reﬂect risk in sale price
● Reduce costs through competitive purchasing, increased productivity, and other means
● Negative impact on societal trust or business continuity due to shutdown of data 
processing, or to theft, destruction, manipulation, loss, etc., of data, following 
external cyber-attack or unauthorized system access, or after unexpected system 
failure or security issue
● Establishment of an IT security system based on the Basic NGK Group Information Security Policy
● Conduct information security training for employees
Business operation risks
1
R&D-related risks
2
Legal compliance, human rights and safety, and quality-related risks
3
Information systems-related risks
4
Currency exchange, capital, and procurement-related risks
5
Climate change and disaster-related risks
6
56

Environmental
In line with the NGK Group Environmental Vision announced in April 2021, the NGK Group has revised its 
Core Policy on the Environment. On the basis of this new 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.
Fiscal 2020 was the final year of the five-year plan, and, 
despite demand recovery and on-site restoration in the latter 
half of the year following a drop in distribution volume due to 
the impact of the COVID-19 pandemic in the first half of the 
year, the growth rate in environmentally friendly products was 
not enough to meet the target by year’s end. On the other 
hand, however, with regard to basic unit per net sales for CO2 
and waste emissions volume, the installation of high efficiency 
equipment and facilities produced a significant improvement 
and enabled us to meet our target.
 
The Fifth Five-Year Environmental Action Plan began in 
fiscal 2021, and the entire NGK Group is working together to 
pursue environmental activities that will ensure we achieve the 
aims of our NGK Group Environmental Vision.
Reduce CO2 emitted 
from manufacturing
Reduce discarded 
materials emitted 
from manufacturing
Develop and 
distribute products 
contributing to 
environmental 
protection
Prevention of 
global warming
Effective use of 
resources
Environmental/
social contribution 
through products
150(%)
100
50
0
2020
2019 target 
▲
2020 target 
▲
2019 target 
▲
2020 target 
▲
2019/2020 target 
▲
Sales growth (from ﬁscal 2013)
Emission intensity (from ﬁscal 2013)
Emission intensity (from ﬁscal 2013)
73%
87
100
85
100
100
100%
150%
Progress Status of Main Activities
Target achievement rate
Fourth Five-Year Environmental Action Plan Final Year Results (Fiscal 2016–2020)
NGK’s Core Policy on the Environment (revised April 2021)
With the aim of fostering coexistence between humans and nature, the NGK Group will promote initiatives that contribute to 
carbon neutrality, a recycling-oriented society and coexistence with nature.
Guidelines for Environmental Action
Strive to develop, design, and manufacture products that contribute to the environment and products with low 
environmental impact.
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.
Enhance environmental management systems from a global perspective while continuously reducing our environmental 
impact.
Not only abide by environmental laws, regulations, and other requirements, but also institute voluntary standards and work 
to improve our own environmental conservation.
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.
1.
2.
3.
4.
5.
57

We have established the Fifth Five-Year Environmental Action 
Plan, which encompasses our environmental action targets for 
fiscal 2021 through 2025.
 
This is the first five-year plan aimed at realizing the NGK 
Group Environmental Vision (announced in April 2021), which 
aims for net zero CO2 emissions by 2050. The Environmental 
Vision’s key themes are “carbon neutrality,” “a 
recycling-oriented society,” and “harmony with nature”.
New Environmental Action Plan (Fiscal 2021–2025)
Base Year, Target Year, Control Scope
P19
NGK Group Environmental Vision
NGK Group Environmental Vision
Core Policy on the Environment
Fifth Five-Year Environmental Action Plan
Achieve NGK Group Environmental Vision
● Initiatives toward carbon neutrality
● Initiatives toward a recycling-oriented society
● Initiatives toward harmony with nature
Connect with Society
● Contributions to environmental society 
● Promotion of environmental communication
Base Year: Fiscal 2013 (for some, Fiscal 2019)
Target Year: Fiscal 2025
Control Scope: Consolidated
Item 
KPI
FY2025 Target
Related SDGs
Category
Reduce CO2 emitted by 
manufacturing activities
Reduce CO2 emitted 
across value chain
Reduce discarded materials 
emitted from manufacturing
・Expand Scope 3 calculation range
・Life-cycle assessment (LCA) of 
 major products
Reduce by 50% from FY2013
CO2 emissions 
(consolidated)
Basic unit per net sales of 
discarded materials emitted
Reduce by 30% from FY2013
Reduction rate against BAU 
for discarded materials 
emitted
Maintain FY2019 levels
Basic unit per net sales of 
water consumption 
(consolidated)
Renewable energy 
use rate (consolidated)
550,000 metric tons 
(Reduce by 25% from FY2013)
50%
Recycling rate (Japan)
Promote resource recycling
Manage and respond to 
water resource risks
Maintain at least 99%
Plan progress (%)
Promote biodiversity 
conservation
Expand and enhance actions aimed at 
Post-2020 Global Biodiversity 
Framework targets
Plan progress (%)
Promote CSR procurement
Evaluate environmental data 
from suppliers
Plan progress (%)
Contribute to 
local communities
Continually enhance actions partnering 
with local communities
Plan progress (%)
Raise environmental 
awareness
Continually enhance environmental training 
and information disclosure
Develop and distribute products/
services contributing to 
environmental protection
Increase number of 
carbon neutrality-related products
registered
FY2021 Target
Initiate life-cycle assessment (LCA) of 
major products
Reduce by 44% from FY2013
Reduce by 25% from FY2013
FY2019 levels
700,000 metric tons 
(Reduce by 4% from FY2013)
25％
At least 99%
Research on Japan and overseas trends
Reviewing the details of 
the survey of suppliers
Collaboration with Aichi Sustina 
Research Institute and EPOC
Publicize the NGK Group 
Environmental Vision
Increase in number of registered 
products
Number of registered 
products
Contributions to
environmental society
Initiatives toward
a recycling-oriented
society
Initiatives toward
harmony with nature
Promotion of
environmental
communication
Initiatives toward
carbon neutrality
Plan progress (%)
58

Activities for Achieving the Aichi Targets
The NGK Group has been pushing forward with activities 
pursuant to the Aichi Targets (international goals for 
biodiversity) agreed upon at the 10th Meeting of the 
Conference of the Parties to the Convention on Biological 
Diversity (COP 10).
 
Since fiscal 2016 under the current Five-Year Action Plan, 
we have done biodiversity surveys of company-owned sites, 
taken part in the Ministry of the Environment’s “My Action 
Declaration” initiative, and worked in unison with our suppliers.
Promoting Participation in the 
“My Action Declaration” Initiative
In fiscal 2017, as a way of raising awareness among 
employees, we began promoting participation in the “My 
Action Declaration” initiative led by the Japan Business 
Federation and the Ministry of the Environment. The aim of this 
initiative is to encourage citizens to take a personal interest in 
the biodiversity around them and to help in protecting it.
 
NGK continues to use this initiative as an opportunity to 
raise awareness among employees and has expanded it 
throughout NGK Group companies in Japan, attracting a 
cumulative total of 6,800 Group employee declarations thus far.
Environmental
Aichi Targets
NGK Group Activities
● Employee environmental education ● Next-generation education
● Cooperation with suppliers ● Promoting participation in My Action Declaration initiative
  1. Spread awareness
● Expanding sales of products contributing to environmental protection
● CO2 reduction ● Effective use of resources ● Cooperation with suppliers
  4. Sustainable production and consumption
● Voluntary employee participation in forestation and other environmental conservation activities
● Biodiversity survey/appropriate control of company-owned site
  5. Inhibit loss of all natural habitats
● Chemical substance management ● Management of exhaust and wastewater
● Expanding sales of products that prevent air pollution ● Cooperation with suppliers
  8. Control pollution by chemical substances, etc.
● Biodiversity survey/appropriate control of company-owned site
  9. Alien species
● Voluntary employee participation in forestation and other environmental conservation activities
11. Conserve protected areas
● Voluntary employee participation in forestation and other environmental conservation activities
● Biodiversity survey/appropriate control of company-owned site
14. Ecosystem services 
Note: Source: “Guidelines for Action by the E&E Industries concerning Biodiversity Conservation” (The Biodiversity Working Group, The 4 Electrical and Electronic Industry Associations)
Initiatives toward Harmony with Nature
In the NGK Group, we view the challenge of protecting biodiversity as an integral part of achieving a sustainable society, and towards 
that end we are undertaking the following activities.
Initiatives Toward Carbon Neutrality
Within the NGK Group, we perform water risk assessments for 
all of our production bases, as well as promote more efficient 
water usage according to independently established guidelines. 
With regard to water risk, we utilize public tools to carry out 
self-assessments at all production bases, and at bases where 
there are water shortage concerns, we bring in third parties to 
perform detailed analyses. Although no serious water-related 
risks have been identified to date at any of our facilities, we will 
continue to monitor the situation and stay abreast of regulatory 
trends to ensure stable operations in the future.
Initiatives toward a Recycling-oriented Society
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) in 
CO2 emissions volume by 2030 compared with the base year 
of fiscal 2013. 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.
* Emissions are a revision of the calculation standard. Specifically, the power emission 
factor (coefficient for converting power consumption into CO2) will be changed from 
the conventional fixed value to the actual value of the power company every year. This 
will reflect the renewable energy utilization rate.
59

The NGK Group is committed to making even greater efforts 
amidst government and private sector actions to achieve the 
goals of the Paris Agreement. The Group’s top management 
determined the importance of endorsing the recommendations 
of the Task Force on Climate-Related Financial Disclosures 
(TCFD), which encourages the disclosure of climate-change 
related risks and opportunities towards making plans for 
reducing CO2 emissions. In February 2020 the Group 
announced its endorsement of the recommendations of the 
TCFD.
 
The TCFD Task Force (TCFD-TF) was established in fiscal 
2021, comprised primarily of members drawn from the Head 
Office, and has begun looking into TCFD-based information 
disclosure.
NGK Endorses TCFD* 
Consideration of Internal Carbon Pricing Introduction
Internal carbon pricing (ICP) involves the independent 
establishment and use of in-house carbon pricing for the 
purpose of promoting decarbonization-focused investment and 
policies. By establishing our own per-volume price internally on 
greenhouse gas (GHG) emissions, these emissions become 
capable of affecting our financial indicators. The TCFD also 
recommends the adoption of ICP as a tool for ascertaining 
risks and opportunities, as well as influencing behavior, 
accompanying the transition of companies to a low-carbon 
society.
 
NGK is considering the use of ICP as a means of 
incentivizing investment in high efficiency equipment and 
facilities and renewable energy-related infrastructure that will 
help us realize our Environmental Vision target of net zero CO2 
emissions by 2050.
* 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 July 26, 2021, 451 companies and organizations have 
announced endorsement.)
We are focused on social connection through contributions to 
environmental society and promotion of environmental 
communication. In terms of contributions to environmental 
society, we have traditionally used the growth rate in sales of 
products contributing to environmental protection as a target; 
however, in order to bring this more in line with our 
environmental vision, we have introduced growth in 
carbon-neutrality-related products as a target. With regard to 
CSR procurement, we are seeking to understand the 
environmental impact, including CO2 emissions, exerted by our 
suppliers.
Environmental/Social Contribution and Environmental Communication
60

In April 2021, the NGK Group created the “NGK Group Human Rights Policy,” 
which codifies the thinking and actions of the NGK Group with regard to human rights.
Information Disclosure 
In addition to releasing the “NGK Group Human Rights Policy”, 
the NGK Group also conducts assessments of human 
rights-related risks. We also utilize an ESG Committee and 
Compliance Committee to address human rights-related 
complaints. Furthermore, we develop our relationship with our 
suppliers by staying in constant communication with them via 
visits to individual suppliers, conducting safety support 
activities and performing CSR procurement-related surveys.
 
Also, even though the results of the self-assessment 
carried out by NGK Group companies in Japan revealed no 
legally problematic issues or situations, there were some issues 
identified which do not align with the RBA Code of Conduct. 
The minor, easily fixed matters are addressed by the individual 
companies, while those not amenable to a quick, structural fix, 
but instead require medium-to-long-term study and discussion 
are addressed by the NGK Group using an integrated, 
standardized approach.
Due Diligence Processes and Assessment 
The NGK Group shall make a variety of efforts to identify, 
prevent and mitigate practices within the NGK’s business 
operations that negatively impact human rights.
 
We carry out a Corporate Risk Survey (CRS) once every 
two years in order to help ascertain any latent risks to 
employees’ human rights.
 
In addition, a total of 17 Group companies in Japan, 
including NGK, conduct a 54 question self-assessment survey 
which is based on the RBA* Code of Conduct and which looks 
at the three categories of labor, safety and health, and ethics.
 
We are working to facilitate and confirm improvement in the 
areas identified from the survey results, and we are also 
working to expand the scope of this self-assessment survey to 
a number of NGK Group companies outside of Japan.
 
We also request our suppliers, particularly new suppliers, 
to sign an agreement to comply with the CSR Procurement 
Guidelines every year. In conjunction with this, we survey 
suppliers in order to ascertain the degree to which they 
understand and incorporate CSR procurement, and we then 
work to support CSR procurement-related improvement across 
all suppliers. 
* 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.
The NGK Group hereby establishes this “NGK Group Human Rights 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.
NGK Group Human Rights Policy (excerpt)
Conﬁrm every 6 months
Complaints Response System
Complaints regarding
human rights
Matters that must be handled by 
the Compliance Committee
Conﬁrmation, 
Joint Action
ESG Committee
Helpline
Website
Switchboard
phone
Consultations
Cases resolved at
Group companies
Human rights due diligence 
HR Committee
● Harassment issues
● Discrimination issues
● Excessive work hours, days off
● Forced labor, child labor
● Minimum wage, unpaid wages
● Labor Union membership, 
 freedom of labor activities 
● Occupational safety and health
● Policy on conflict minerals
● Other
Business Division
Purchasing Department
Legal Department
Group Compliance Department 
Deliberation by Human Resources Department/
Group Compliance Department
Compliance Committee
Human Resources Department
Reporting, approval
Survey, redressal 
All complaints regarding human rights
NGK Group Human Rights Policy (full text)
https://www.ngk-insulators.com/en/info/policies/
Reference URL
Human Rights
61

With a basic policy centered on the three principles of openness and fairness, partnership, and 
relationship with society, the NGK Group is engaged in fair, free, and transparent transactions with the 
procurement partners in our supply chain.
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
● Open, fair, and honest procurement
● Pursuit of competition principles and 
profitability
● Compliance with laws
● Preservation of the global 
environment
● Mutual prosperity based on mutual 
trust with suppliers
Open and Fair
Partnership
Relationship with Society
CSR Procurement Guidelines
The NGK Group created the CSR Procurement Guidelines in 
fiscal 2010 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 fiscal 2013, the Guidelines were expanded by being 
integrated with the previous Green Procurement Guidelines, 
which set forth rules for preferential purchase of 
environmentally friendly products and services, and adding 
provisions of conflict minerals, anti-corruption, human rights, 
and labor issues.
 
The expanded CSR Procurement Guidelines are publicly 
available on our website in multiple languages (Japanese, 
English, and Chinese).
Improving CSR procurement
At the NGK Group, we develop activities to promote CSR 
procurement, such as visiting individual suppliers and 
conducting on-site inspections. We also request our suppliers, 
particularly new companies, to sign an agreement to comply 
with the CSR Procurement Guidelines.
 
We are preparing to conduct a survey for suppliers in fiscal 
2021 in order to ascertain the degree to which they understand 
and incorporate CSR procurement. In fiscal 2022, we will 
complete measures that can be implemented to make the 
necessary improvements. 
Penetration (Understanding)
ー Status surveys
Status surveys
ー Understanding
Compliance (agreement)
ー Expansion
Conduct ongoing communication activities with procurement partners
Create the CSR Procurement Guidelines
Integrate the Green Procurement Guidelines
Maintain and continuation
ー Improve quality
2010
2011
2012
2013
2014
2015 to 2019
2020 to 2021
Conduct CSR procurement-related survey
Ascertain the degree to which
suppliers understand and incorporate
CSR procurement
Hold earnings presentations
Conduct one-on-one
meetings in Japan and overseas
Operate Supplier Helpline
Ongoing Promotion of CSR Procurement
Request that suppliers agree to comply
with new CSR Procurement Guidelines,
obtain and conﬁrm written agreements
Conduct supplier status surveys
using CSR self-checklists
Basic Purchasing Policy
CSR Procurement Guidelines Supplemental Materials
https://www.ngk-insulators.com/en/info/procure/
Reference URL
Supply Chain
62

The NGK Group strives to increase opportunities for motivated 
and skilled people to enhance their skills regardless of gender. 
We are also engaged in creating comfortable working 
environment for women.
 
The number of female key personnel (managers) in NGK in 
fiscal 2020 was 29.
Promoting the Success of Women
NGK undertakes a variety of initiatives aimed at employing 
people with disabilities, such as accepting students from 
special-needs schools as trainees and attending employment 
seminars for people with disabilities.
 
In fiscal 2020, we hired two new employees with 
disabilities. Among our special subsidiaries, the number of new 
hires was eight. These hiring activities helped us achieve a 
statutory hiring rate of 2.3%*.
 
In fiscal 2021, NGK and NGK Ceramic Device will each hire 
one new graduate, as will NGK Yu-Service, and, when 
combined with the planned hiring of six mid-career employees 
with disabilities, we anticipate achieving a statutory hiring rate 
of 2.42% by the end of fiscal 2021.
*The number of employees with disabilities in fiscal 2020 was 141, which is a statutory 
hiring rate of 2.35%. Both the employee number and rate are derived from the 
combined total for NGK, NGK Yu-Service, and NGK Ceramic Device.
Initiatives for Persons with Disabilities
One of the top priorities for NGK is having stronger safety and health activities, which is why one of the top policy focuses for the 
second 3-Year Action Plan created in fiscal 2019 is to “strengthen risk management and governance systems” and for which we 
pursue measures aimed at preventing or mitigating workplace hazard and occupational accident that result in serious injury.
Enhancing Safety and Health Activities
FY2020
Ratio of female 
key personnel
3.0%
Number of female 
key personnel
29
FY2017
FY2018
FY2019
2.0%
2.2%
2.9%
20
17
26
NGK Ratio of Female Key Personnel (Managers)
FY2020
23.1%
FY2017
FY2018
FY2019
21.0%
16.0%
20.2%
Ratio of Female Key Personnel (Managers) 
at Group Companies Outside Japan
The NGK Group endeavors to provide all employees with a safe and accommodating workplace 
environment.
Number of Disabled Employees/Hiring rate
(NGK, NGK Yu-Service, NGK Ceramic Device)
0
50
100
150
200
0
1
2
(Persons)
2020/3
135
2017/3
55
2018/3
57
2019/3
62
2.20
2.03
1.90
1.92
(%)
2021/3
145
2.35
Persons
Hiring rate
Results of Fiscal 2020 Activities
Reduce risk of workplace hazard and 
occupational accident that result in 
serious injury
Entrench Group Company Governance 
Mechanisms
Acquire Safety and Health Management 
System International Certiﬁcation
(ISO45001)
Strengthen Risk Management
Strengthen Group Governance
Fiscal Year Implementation Items
Medium-Term Action Plan
Key Initiatives
We completed a reexamination of equipment/operations that present workers with 
potential workplace hazard and occupational accident leading to serious injury, such as 
being caught in rotating machinery, electrocution or explosions, and we put in place 
operational safeguards (e.g., organizational or administrative measures) at all 
production sites to control these risks. We are also largely ﬁnished with the 
implementation of engineering or technical measures (e.g., equipment update or 
remodeling), except at some overseas sites.
In addition to safety and health-related auditing of Group companies by Safety & Health 
Department at the Head Ofﬁce, Group company governance was strengthened in other 
ways, such as through internal auditing of Group companies by Business Group 
specialized teams responsible for overseeing them.　
As of June 2021, safety and health management system international certiﬁcation has 
been obtained for all production sites of Group companies in Japan and overseas.
Safe and Comfortable Workplaces
63

The NGK Group puts its Group Philosophy into action by ensuring that Quality of People remain our top 
priority as we pursue the mission of “Enriching Human Life by Adding New Value to Society.” We do this 
not only through the educational programs that we offer but also by cultivating work environments and 
supportive supervisors capable of ensuring that each employee is able to contribute and independently 
grow through the work that they undertake within the environment in which they are placed.
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.
Group Philosophy
Our Values
Quality of People
Embrace challenges and teamwork
Quality of Product
Exceed expectations
Quality of Management
Social trust is our foundation
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
Basic Human Resource
Development Guidelines
Enacted in 2006
● To cultivate personnel who can both inherit and develop the tradition and spirit of monozukuri, or “manufacturing”
● To cultivate personnel with the ability and talent to support worldwide business development
● To provide all interested employees a platform for growth and learning
The aim of innovation training is the cultivation of leaders suited to 
an era of transformation and speed. This is achieved by fostering 
outside-the-box thinking coupled with an ability to think and act to 
bring an idea to fruition.
 
In the program for young employees with leadership potential, 
participants learn about the essential innovation processes 
involved in generating new business. The program is held jointly 
with other companies. This allows interaction with employees from 
other companies who have different experiences and values, thus 
helping NGK employees develop a more multifaceted perspective.
Innovation Training
This training program looks at the history of NGK in order to 
reexamine the origins of our corporate activities, to reinforce 
our shared values, and then to prompt participants to think 
about how this impacts the way they go about their jobs. The 
program for newly appointed managerial personnel 
incorporates corporate history materials related to topics such 
as globalization and diversity, which are assigned to each 
participant group, along with a worksheet, that they discuss in 
depth in relation to the distinctive character of NGK.
 
Education programs for other job grades are being steadily 
introduced, as well as programs geared towards Group 
companies outside Japan.
Corporate History Training
NGK Manufacturing Training
Develop a deeper 
understanding of 
products and 
technologies 
(NGK’s unique
technologies)
● Technical training for 
 clerical/sales divisions
● NGK ceramic material 
 technologies lecture
We pursue training aimed at conveying the central importance of 
safety, the environment, quality, timely delivery, and cost in 
manufacturing while passing on the traditions and spirit of NGK 
manufacturing. This training also aims to grow employees into 
individuals who can support the creation of new value.
 
Towards this end, we provide training in specific technologies that 
will deepen employees’ understanding of NGK products and 
technologies, as well as provide training in administrative and 
improvement techniques that will equip employees with the mindset 
and means to improve their workplaces.
 
Manufacturing basic training is centered on practical training tied 
to the actual manufacturing process. It involves teaching participants 
about ceramic technologies and manufacturing in general at NGK so 
that they will have a broad perspective, which they can apply in their 
work.
 
Worksite capability enhancement training cultivates human 
resources capable of making managerial contributions as 
manufacturing worksite leaders who independently pursue worksite 
capability improvements together with others both in and outside of 
their plant’s organizational framework.
Manufacturing Training
Since 2006
Manufacturing 
basic training
Fundamentals of 
ceramic technologies
Since 2005
Worksite capability 
enhancement training
Manufacturing worksite 
leader training
Since 2009
Prevention Reliability 
management
QC, quality, and cost
Seven QC tools, statistics, 
problem-solving approaches, 
and manufacturing cost 
structure
Training to be aware 
of and to resolve 
one’s own challenges 
(administrative/
improvement 
techniques)
Human Resource Development
64

Business Overview
Although the impact of COVID-19 on the 
economy will continue to be a concern, we 
aim to achieve further growth through 
expanding sales of high-function products 
and products that contribute to the 
environment.

In fiscal 2020, net sales slightly declined, because 
the global automotive sales volume dropped in the 
first half of the year, despite a rapid recovery in 
demand mainly in the Chinese market during the 
latter half. Operating income declined as a result 
of various factors, including lower sales and 
increased depreciation expense.
Sales of products for semiconductor 
manufacturing equipment increased due to a 
recovery in demand driven by strong foundry and 
memory investments. As for industrial 
process-related products, net sales were at the 
same level as the previous fiscal period.  
Operating income increased due to several factors 
including an increase in shipment volume.
Ceramic Products Business
Process Technology Business
Fiscal year ended March 2021 results 
(after elimination of intersegment sales)
Net sales
248.9 billion yen
Operating income
41.2 billion yen
Fiscal year ended March 2021 results 
(after elimination of intersegment sales)
Net sales
107 billion yen
Operating income
10.9 billion yen
(Billions
 of yen)
250
150
100
50
200
2019/3
2017/3
2018/3
0
245
240.7
251.4
2020/3
251.8
2021/3
248.9
64.6
56.7
55.9
53.5
41.2
Operating income
Net sales
(Billions
 of yen)
100
50
2019/3
2017/3
2018/3
0
94.7
103.4
2020/3
91.5
2021/3
107
17.1
17.6
6.4
10.9
Operating income
Net sales
At a Glance
Note: Effective from the fiscal year ended March 31, 2019, due to organizational changes, the business segment of the NGK Group has been changed from “Power Business”, “Ceramics 
Product Business" and “Electronics Business” to “Power Business”, “Ceramics Business”, “Electronics Business" and “Process Technology Business”. The figures for the fiscal year 
ended March 31, 2018 have been made based on the new business segmentation.
67

Fiscal year ended March 2021 results 
(after elimination of intersegment sales)
Net sales
54.1 billion yen
Operating income
2.8 billion yen
Fiscal year ended March 2021 results 
(after elimination of intersegment sales)
Net sales
42 billion yen
Electronics Business
Energy Infrastructure Business
(Name changed from the Power Business in April 2020)
Operating income
(4.0) billion yen
In electronic components-related business, the 
demand for bonded wafers for surface acoustic 
wave (SAW) filters and piezoelectric 
micro-actuators for hard disk drives (HDDs) 
increased; however, the demand for ceramic 
packages dropped against a backdrop of stagnant 
capital expenditure for mobile phone base stations. 
This was also accompanied by sales of shares and 
fourth quarter exclusion from consolidation of 
Soshin Electric Co., Ltd., resulting in reduced 
sales. Operating income increased due to a variety 
of factors, including a change in product mix. 
Sales of insulators remained low due to the 
continued restraint on capital investment by 
domestic electric power companies and the 
discontinuation of unprofitable products. Sales of 
NAS® batteries were sluggish due to a lack of 
shipments for large-scale projects both in Japan 
and overseas. As a result of a decline in insulators 
losses, the operating loss decreased. 
(Billions
 of yen)
100
50
2019/3
2017/3
2018/3
0
-10
61.3
58.8
2020/3
55.4
2021/3
54.1
0.9
103.5
5.3
(0.3)
0
2.8
(Billions
 of yen)
50
0
2019/3
2017/3
2018/3
-10
54.4
49.8
2020/3
43.3
2021/3
42
(4.7)
52.8
(6.6)
(8.5)
(4.9)
(4.0)
Operating income
Net sales
Operating income
Net sales
68

Sales ratio by business
The NGK Group Vision anticipates a scenario in which there is 
zero demand for internal combustion engines by the year 2050. 
We aim to transform our business in line with this scenario, so 
that carbon neutrality and digital society-related products 
account for 50% of sales in 2030.
 
During the transition period, the Ceramic Products 
Business Group has a responsibility to recover past investment 
Sensors
21%
Automotive 
ceramics for 
exhaust gas 
puriﬁcation
79%
2020
Ceramic Products Business
Pursuing new products to launch, 
while maintaining the position of 
profit center
Main market
[Market for NGK products for emission control systems]
Global market size: 500 billion yen
(2020 NGK estimate)
Primary customers
[Products for emission control systems]
Manufacturers of cars, trucks, and agricultural and 
construction equipment in and outside Japan
Core products
Diesel particulate filters (DPFs)
Removes up to 99% of particulate matter (PM). The more 
heat-resistant silicon carbide filters (left-hand side of 
photograph) are mainly used in passenger cars, while the 
lightweight cordierite filters are used in large vehicles.
In-vehicle high-precision NOx sensors
These sensors contain elements that utilize zirconia’s oxygen 
pump function. They are installed in clean diesel vehicles 
around the world because of their superb detection capabilities 
and durability.
Forty-five years ago in 1976, HONEYCERAM®, a honeycomb 
catalyst substrate for controlling automotive emissions, went 
on the market. We have continued to refine and improve our 
technology over the intervening years while adapting to 
changes in society and in the business environment. However, 
the automotive industry is currently undergoing a 
once-in-a-century paradigm shift. We must not ignore this 
change, nor should we fear it. I believe the Ceramic Products 
Business Group is a frank and open organization where 
members can express ideas and opinions freely.
We will move forward by following and preparing for change 
through discussions involving all members.
Inaugural aspirations
Be positive, without being afraid of 
change
Towards realization of the NGK Group Vision
Provide products that contribute to carbon 
neutrality via unique technology
69

and to continue supporting the NGK Group financially as its 
profit center.
 
Beyond that, our aim is to make use of our unique 
technologies to develop new products that we will bring to 
market. Specifically, we will focus on the following three areas.
 
First, we will develop products used in plug-in hybrid 
electric vehicles (PHVs) as well as synthetic fuel (e-Fuel) 
vehicles. In the future, we anticipate that there will still be some 
internal combustion engine-powered vehicles such as PHVs 
and e-Fuel vehicles in use; hence, there will be a need for 
products for emission control systems. However, as these will 
need to be more technologically advanced, we will continue to 
provide new products adapted to our customers’ needs.
 
Second, we will develop products for electric vehicles 
(EVs). One example is products for thermal management, 
which conduct electricity through a honeycomb structure in 
order to achieve heat modulation. Because EVs have the 
disadvantage of a short cruising distance, this creates a 
challenge for managing heat using as little electricity as 
possible. This is something we are pursuing development on 
while in contact with automakers.
 
Third, we will develop products unrelated to automobiles. 
Examples of new products put forward in the NGK Group 
Vision in developing jointly with other departments include CO2 
adsorption modules and solid oxide electrolysis cells (SOEC), 
as well as honeycomb structural reactors for e-Fuel, to 
facilitate adsorption and recovery of CO2.
 
In order to achieve these we will need to search for new 
business and refine our core technology. Our future task is to 
determine what kind of technology we can use for carbon 
neutrality-related products.
 
While refining our core technology for that future, we are 
also continuing to improve our production efficiency. In a 
project called “Honeycomb Process Digital Transformation” 
(HPDX), we will, by analyzing production process data, 
automate and reduce the amount of labor required to perform 
adjustment of material viscosity, shape, water volume, 
temperature, extrusion speed, etc. These are all tasks which 
we have been dependent upon veteran employees to carry out. 
We are aiming for the completion of HPDX in three years’ time.
 
Also, we are investigating alternative fuels that we can use 
for our kilns in order to promote the carbon neutrality of our 
manufacturing sites. At present, we use natural gas, which 
emits a large amount of CO2. We would switch this to another 
fuel, such as hydrogen or ammonia. Or, we could use electric 
kilns that would allow us to switch to in-house energy 
production and renewable energy use derived from a 
combination of NAS® batteries and solar cells. Given that our 
overseas plants occupy large enough areas to install NAS 
batteries, and for which renewable energy can be easily and 
inexpensively obtained, this is a feasible option.
As a result of the impact of the COVID-19 pandemic, the first 
quarter of the period ended March 2021 saw unavoidable 
suspensions of operations at a majority of the overseas plants, 
with the exceptions of China and Poland; however, sales of 
passenger vehicles and trucks recovered during the latter half 
of the year, primarily in China, and this resulted in a rapid 
recovery in demand for our business group’s products. It was 
thanks to the efforts of our employees that we were able to 
accommodate this resurgence in demand while still adhering to 
infection control measures. Although sales and profits were 
lower than those of the previous year, they were above what 
we predicted at the start of the fiscal year. 
 
Currently, there is healthy demand for catalyst substrates 
for controlling automotive emissions and NOx sensors. Our 
gasoline particulate filter (GPF) business is also up and running. 
Our aim is to ensure optimal production according to demand.
 
Additionally, we are moving ahead with start-up of our 
“dew-point-free” NOx sensor, which begins operating as soon 
as the engine starts. We are also planning to develop and bring 
to market electrically heated catalysts (EHCs) sometime 
between 2025 and 2027.
 
Our core competencies go beyond our current product 
lineups to encompass various ceramic technologies that cover 
the areas of development, production and evaluation, as well 
as the ability to communicate well with customers. Using 
these, we will create products that contribute to carbon 
neutrality.
Current situation and future outlook
Adequately adapting to changing demand
Jun Mori
Senior Vice President; 
Group Executive, 
Ceramic Products Business Group
70

HPC Business
75%
Industrial Process 
Business
25%
Process Technology Business
Set “CN” and “DS” on a springboard 
to achieve the NGK Group Vision
Main market
[Capital investment in 300 mm wafer fab equipment]
Global market size: $56.7 billion
(2020 SEMI estimate)
Primary customers
Ceramic heaters
[Manufacturers of semiconductor manufacturing 
equipment]
Core products
Ceramic heaters
Pedestals used to uniformly control the temperature of silicon 
wafers in the deposition process. The unique structure of a 
shaft bonded to the bottom of the heated pedestal, where 
wafers are placed, protects terminals and conducting wires 
from halogen gas.
Low-level radwaste treatment system
The system has been adopted at nuclear power facilities 
throughout Japan and has been lauded for contributing to 
reducing waste by the highly recognized for its extremely 
effective dust removal and safety.
The environment around NGK Group is changing at a 
tremendous speed towards carbon neutral and digital society. 
It is difficult to predict exactly what society will be like in 2050, 
but VR (virtual reality) and AR (augmented reality) will be 
integrated into our daily lives, and automation will have 
advanced in all aspects, including autonomous driving. I also 
believe that the rules to protect the global environment will 
become stricter than we can anticipate. In such a society, the 
goal of the HPC Business, one of the businesses of this 
business group, is to contribute to the development of 
semiconductors used as the key devices in the social 
infrastructure that support people's lives, and the goal of the 
Industrial Process Business is to create a series of products 
and services that contribute to the realization of carbon 
neutrality.
 
HPC Business progresses the conversion toward smart 
factory through DX from this fiscal year. In addition to the 
introduction of automated warehouses and warehousing using 
QR labels and RFID tags, we will "visualize" the manufacturing 
history by utilizing the vast amount of data related to the 
manufacturing of each product. 
 
Our aim is to achieve quick transfer of alert information to 
the previous and subsequent production process in order to 
prevent manufacturing defects.
Towards realization of the NGK Group Vision
Contributing to the development in 
semiconductors and the achievement 
of carbon neutrality
Sales ratio by business
2020
71

The chamber components and thermal spraying 
businesses of FM Industries, our U.S. subsidiary, have been 
highly reputated for their ability to respond quickly to customer 
requirements, and we expect to expand our business in the 
future. We are preparing for future needs by expanding our 
facilities in California and Arizona.
 
With regard to Industrial Process Business, our aim is to 
contribute, through a succession of products and services, to 
carbon neutrality. We have established a marketing department 
and pursue cross-channel sales expansion of our business 
fields. Moving forward, we will expand our main focus beyond 
the domestic Japanese market to overseas markets, including 
Europe and the U.S., in order to concentrate on expanding 
existing business applications and sales, as well as 
development of new products and business. The innovative 
ceramic membranes that NGK is developing represent a core 
competency that we will capitalize upon through products and 
equipment capable of contributing to society’s environmental 
needs, such as CO2 and nitrogen separation and the creation 
of a bioeconomy, and, thereby, reliably grow our carbon 
neutrality-related business.
At the start of the financial period ended March 2021, the 
impact of the COVID-19 pandemic was concerned; however, 
as the business which our business group is engaged in is 
fundamentally close to an essential business, we were not 
significantly impacted. Rather, the demand by people staying 
at home has been a tailwind, and has driven up sales and 
profits overall.
 
The HPC Business saw significant growth in both ceramics 
for semiconductor manufacturing equipment and chamber 
components due to a recovery in investment in foundries and 
memory segments. On the other hand, fiscal 2021 will be a 
challenging year in terms of profit due to increased 
amortization of prior capital investments, increased 
development input to enhance competitiveness, and additional 
capacity expansion at FM Industries, whose business is rapidly 
expanding. We will strive to improve productivity and prepare 
for the expansion of semiconductor demand in the medium 
term.
 
With regard to Industrial Process Business, there was 
robust demand for membrane separating systems, particularly 
for purifying water for use in pharmaceutical production, and 
glass linings; however, because of a lack of demand for 
industrial heating systems, refractory products and energy 
plant-related systems, sales for the year were flat, with profits 
falling short of expectations. The main challenge for fiscal 2021 
is reconstructing NGK Technocera Suzhou. Amidst increasingly 
active investment in lithium-ion batteries in anticipation of 
growing demand for EV, we have reached a ‘moment of truth’ 
where we must figure out how we will overcome our Chinese 
competitors.
 
Our business group is also anticipating a favorable market 
environment for the period ending March 2022.
Current situation and future outlook
The impact of COVID-19 for the economy was not as negative as estimated
In the past few years, countries around the world have publicly 
committed themselves to reducing greenhouse gases, and this 
has catalyzed a major shift in global awareness and attitude. 
As NGK make efforts to meet its corporate responsibilities with 
regard to carbon neutrality, our business group has the 
potential to contribute such activities through our wide-ranged 
products and business domains.
 
This high aim to reduce 50% of CO2 emissions by 2030 
would bring us great opportunities to take a big leap forward if 
our products and services meet our customers' expectations.
Also, we should consider adopting a service-oriented business 
model that will enable us to receive consistent revenue.
 
We will continue to expand our business by clear 
understanding of the market’s necessity, providing appropriate 
products and services, and receiving return by sharing such 
value we provide.
Message
What sort of value can we deliver to our customers?
Ryohei Iwasaki
Director and Senior Vice President; 
Group Executive, 
Process Technology Business Group
72

Soshin Electric*
13%
Electronic 
components
52%
Metal related
36%
Electronics Business
Riding the wave of a changing 
environment to threefold growth 
in sales by 2030
Main market
[Amount of digital data generated and transmitted 
worldwide]
Average annual growth rate of approximately 30%
Amount in 2025 will be more than five times that of 
2018: 175 ZB (zettabytes: 1 trillion gigabytes) (IDEMA Japan estimate)
Primary customers
[Piezoelectric devices for HDDs, bonded wafers, etc.]
Manufacturers of HDDs, communication devices
Core products
Micro-actuators are indispensable for performing precise 
control of magnetic heads in 
HDDs. As the key device 
enabling both high capacity 
and reliability in HDDs, our 
ultra-compact micro-actuators 
are used in data centers 
throughout the world.
Piezoelectric micro-actuators for HDDs
Bonded wafers are substrates for electronic devices developed 
by proprietary bonding technologies and ultra-high-precision 
wafer polishing technologies 
cultivated in the ceramics 
business. Combining different 
materials makes it possible for 
bonded wafers to deliver 
performance and functionality 
beyond wafers made from a 
single material.
Bonded wafers
From 0.045 mm sheets and coils to bars and wire a mere 0.05 
mm in diameter, we can provide the right alloy mix with a 
variety of hardness to meet 
customer needs. Beryllium 
copper alloys boast 
outstanding strength, 
conductivity, fatigue 
resistance, high-temperature 
characteristics, workability, 
and resistance to corrosion.
Beryllium copper alloy
As we move toward the future society of 2050, the environment 
all around us is undergoing major changes, including advances 
in high-speed, high-capacity communications, an accelerating 
shift towards EV, transitioning to natural energy and the arrival of 
a hydrogen-based society. Our business group has developed a 
long-term business plan and set targets for 2030 based on how 
we anticipate society will change. We aim to grow our sales 
approximately threefold by 2030 compared to their current level.
 
When you consider the key characteristics of our business 
group’s product lineups in light of the NGK Group Vision’s 
focus on carbon neutrality (CN) and digital society (DS), you 
see that we have a lot to offer in these fields, particularly in the 
area of digital society. With 5G becoming increasingly 
widespread, the number of high-performance filters used on a 
single smartphone is increasing, which means we anticipate 
medium-to-long-term growth in demand for bonded wafers. 
And, of course, even more possibilities open up for us to 
pursue when we look past 5G to 6G and at the introduction of 
new telecommunications standards such as those related to 
millimeter waves, as well as when we think about potential 
applications for various sensing devices. In addition, we are 
working on combining our unique process technologies with 
new materials to come up with structural and functional 
products aimed at the semiconductor and health care fields 
and developing business in entirely new fields.
 
For our commercially available EnerCera® lithium-ion 
rechargeable batteries, beyond smart card and wearables 
Towards realization of the NGK Group Vision
Pursuing new possibilities with new 
products that support a digital society
Sales ratio by business
2020
* Excluded from consolidation from the fourth 
quarter of the fiscal year ended March 31, 2021
73

applications, we are looking into industrial applications, such 
as IoT (Internet of things) applications in factories and stores 
and quality control applications in shipping, as well as 
applications in a variety of other fields.
 
With technological innovation being driven by 
advancements in high-speed, high-capacity 
telecommunications and increasingly diverse data utilization 
scenarios, this is a perfect growth opportunity for bonded 
wafers, hard disk drive (HDD) piezoelectric micro-actuators and 
EnerCera to be further developed as products contributing to 
the realization of a digital society.
 
We are also pursuing product development in the area of 
carbon neutrality, which represents the other pillar of the NGK 
Group Vision. For the time being, our main focus is DCB and 
AMB substrates (for power modules). The growth in demand 
for vehicular power modules that will accompany the trend 
towards electric motor adoption clearly signals an expansion in 
customer adoption for EV (electric vehicles), HEV (hybrid 
electric vehicles) and PHV (plug-in hybrid vehicles).
 
Also, amidst ongoing carbon recycling-related initiatives 
and other initiatives aimed at realizing a low-carbon society, we 
anticipate growth in hydrogen-related infrastructural systems. 
We will work on expanding applications of beryllium copper 
alloy materials, taking advantage of the fact that they offer high 
thermal conductivity, excellent strength properties and do not 
degrade when exposed to hydrogen, in order to contribute to 
the creation of a hydrogen-based society.
With the aim of helping realize the NGK Group Vision, we are 
pursuing future growth that is based not only on ‘product 
manufacturing,’ by which we will continue to offer products that 
give us competitive strength, but also on ‘solutions 
manufacturing,’ by which we go beyond offering products to 
also the accompanying applications. Currently, the main 
products underpinning our business group include piezoelectric 
micro-actuators for HDDs, bonded wafers and beryllium copper 
strips, all of which have set customers and applications and, 
through the use of technology which sets us apart from our 
competitors by meeting highly difficult specifications, have 
fostered our growth thus far. However, EnerCera differs notably 
from these products in that it requires “marketing which 
motivates customers.” In other words, we must work on the 
customers, develop applications and build a market for 
EnerCera. Customers will not be able to completely utilize the 
batteries if we simply sell them and ask them to try them out. It 
is important that we develop and demonstrate applications that 
the customers themselves are not yet aware of.
Message
Helping achieve our vision through stronger ‘product manufacturing’ 
and ‘solutions manufacturing’
For the fiscal year ended March 2021, during the first quarter, 
the spread of the COVID-19 pandemic resulted in a drop in 
shipments to China and South Korea for our Electronics 
Business as a whole, as well as other effects, including a 
suspension in operations at the Malaysian production facility of 
our Package Business. The latter half of the year saw an 
incremental recovery in the market, centering on the Chinese 
automotive industry. With regard to specific products, while 
demand for piezoelectric micro-actuators for HDDs and bonded 
wafers increased, demand for mobile phone base station 
ceramic packages declined. This was also accompanied by 
sales of shares and fourth quarter exclusion from consolidation 
of Soshin Electric, resulting in reduced sales, while operating 
income increased due to higher demand and reduced costs.
 
For the fiscal year ending March 2022, we anticipate that 
electronic components-related business will see increased 
demand for piezoelectric micro-actuators for HDDs and 
package-related products, while metal-related business will 
see favorable movement upward in sales of beryllium copper 
alloy products. On the other hand, however, as a result of the 
change in the basis by which bonded wafer sales are recorded, 
as well as the exclusion from consolidation of Soshin Electric, 
we foresee decreased revenue for our business group as a 
whole. As for profitability, we anticipate that increased demand 
in metal-related business and electronic components-related 
business, as well as the return to profit of NGK Group company 
NGK Electronics Devices, will help provide us with increased 
profits.
Current situation and future outlook
Anticipating increased profits due to increased demand and improved profitability 
Shuhei Ishikawa
Senior Vice President; 
Group Executive, 
Electronics Business Group
74

Main market
[Global market for large rechargeable batteries]
Storage system market size: 1.882 trillion yen
(Estimate for 2030 by Fuji Keizai Management)
Primary customers
[Stationary rechargeable batteries]
Power utilities, engineering companies, etc.
Core products
NAS® batteries
NGK developed the world’s first commercialized battery system 
capable of storing hours of electricity. These systems, which 
enable a high output of electric power for long periods of time, 
have been installed in around 200 locations worldwide.
Insulators
93%
Energy storage 
7%
Energy Infrastructure Business (Renamed from Power Business in April 2020.)
Expanding energy infrastructure-related 
business to help realize 
carbon neutrality 
Zinc rechargeable batteries
Zinc normally causes short-circuiting during charging when 
used in rechargeable batteries. However, NGK has solved this 
problem and developed a zinc rechargeable battery by utilizing 
its proprietary hydroxide ion conducting ceramics. Featuring 
high capacity and inherent safety, the zinc rechargeable 
battery is an optimal storage solution for indoor installations.
Sales ratio by business
I have worked in the Ceramic Products Business Group from 
the time I joined NGK up until April of 2021, when I was put in 
charge of the Energy Infrastructure Business Group. While this 
means I have no experience in power-related business, it also 
means I am able to view things from a different perspective to 
someone who has spent their entire career in it, which will, 
hopefully, stimulate new ideas and innovation.
 
In fiscal 2020 our business group was renamed from 
“Power Business” to “Energy Infrastructure Business.” This 
was done to reflect the fact that, in the 100 years since NGK 
was founded, we have grown to handle more than just 
power-related products. My immediate goal is to create a 
grand design which is focused on the future of energy as a 
whole. This will be refined into concrete scenarios and action 
plans to be promptly implemented. 
Inaugural resolutions
Constructing and executing a grand 
business design
2020
75

Atsushi Matsuda
Senior Vice President; 
Group Executive, 
Energy Infrastructure Business Group
The period ended March 2021 saw only limited impact from the 
COVID-19 pandemic; however, the business group continued 
to operate in the red due to significant, existing difficulties in 
the business environment. With regard to insulator business, 
capital investment by domestic electric power companies 
remains low, while at the same time adoption of polymer 
insulators is steadily increasing. Similarly, in the energy storage 
business, full-scale demand for long-lasting storage batteries 
has yet to materialize, while NAS battery plant operating rate 
remains low.
 
On the other hand, however, one significant positive result 
is the price revisions for insulators which nearly all customers 
in Japan and overseas had agreed to as of the preceding fiscal 
period.
 
Although no major change in business environment trends 
is expected for the period ending March 2022, we predict that, 
thanks to the rebuilding efforts that we have undertaken up to 
this point, insulator business will be put back into the black for 
the first time in six years. Also, with regard to our zinc 
rechargeable batteries, demonstration testing is ongoing. We 
anticipate these batteries will find uses as backup power 
supply systems in mobile phone base stations and as 
emergency power supply systems in buildings thanks to their 
high degree of safety. Based on performance results from the 
current fiscal year, we will pursue commercialization and begin 
sales from next fiscal year for a limited number of customers 
and applications.
Current situation and future outlook
Putting NGK insulator business into the black and 
expediting commercialization of zinc rechargeable batteries
The world is rapidly moving towards the realization of a 
decarbonized society, and the NGK Group Vision itself puts 
forward contributing to carbon neutrality as one aspect of 
“what we want to be.” What the Energy Infrastructure Business 
Group can do right now to ensure the health and habitability of 
the environment that our grandchildren will inherit is to 
contribute to carbon neutrality through an expansion of our 
energy storage systems.
 
For our storage battery business, we will expand our 
“product-focused” sales approach to encompass a broader 
“solutions-focused” approach. One example of this is a new 
approach to regional power producers and suppliers. What we 
are aiming at is not simply to sell storage batteries; rather, it is 
to contribute value to local governments by facilitating 
business continuity planning, renewable energy 
decarbonization and other efforts. There are a number of other 
business models that we are also developing into projects 
which combine NAS batteries with renewable energy, and we 
are driving for the transformation of our business portfolio by 
utilizing these models. 
 
We also have plans for even further into the future. An 
example is the synthesis of methane gas and “e-fuel” synthetic 
fuel via our ceramic expertise. It has been estimated that the 
cost of solar powered energy production in the Middle East, 
North Africa and other regions which enjoy a lot of sunlight 
could be around one-third that of Europe and other regions 
with less sunlight. Thus, we first would use our NAS batteries 
to store the low-cost, renewable energy produced in those 
sunny regions. As the next step, we would use our 
subnano-ceramic membranes to concentrate CO2 in exhaust 
gases from production sites and in the atmosphere. The 
renewable energy stored in the NAS batteries can then be used 
to power our ion-conducting ceramic solid oxide electrolysis 
cells (SOEC) which efficiently electrolyze water with CO2 to 
produce hydrogen (H2) and carbon monoxide (CO). When we 
introduce our honeycomb structural reactors at this point to 
perform methanation (methane synthesis) of the electrolyzed 
byproducts, we will have a whole process for creating synthetic 
methane gas and “e-fuel” synthetic fuel. Finally, by deploying 
those ceramics products that incorporate our Group’s core 
technology into plant equipment, we can expand our scope 
into the plant engineering business. Our goal for the future is to 
provide comprehensive energy services, including producing 
fuel at a plant we construct ourselves. 
Towards realization of the NGK Group Vision
Making “comprehensive energy business” 
our goal for the future
76

Corporate Data
Let’s look at a range of data from the 
NGK Group, including major financial and 
non-financial indicators.

Net sales
Cost of sales
Selling, general, and administrative expenses
Operating income
Net income attributable to owners of the parent
Capital expenditures
Research and development expenses
Net cash provided by operating activities
Net cash used in investing activities
Net cash provided by financing activities
Total assets
Interest-bearing debt
Net assets
Profit per share (yen)
Cash dividends per share (yen)
Ratio dividends to net worth (%)
Return on equity (ROE) (%)
Equity ratio (%)
Price-earnings ratio (PER)
Price-book value ratio (PBR)
Closing stock (yen)
Number of employees, end of year (persons)
March 2013
March 2014
252,789
178,052
54,041
20,695
11,422
31,216 
11,315 
3,681
(582)
12,448
563,030
155,816
303,073
34.98
20
57.2
4.2
52.0 
29.0 
1.1 
1,013
13,159
March 2012
248,948
172,456
49,986
26,504
(35,351)
28,839 
11,428 
13,850
(45,438)
56,608
523,322
131,436
264,381
(108.27)
20
－
(12.6)
48.5
－
1.5 
1,181
12,372
March 2011
239,363
160,804
46,456
32,102
24,428
25,284 
11,437 
36,650
(17,886)
(5,146)
479,793
69,229
323,945
74.80 
20
26.7
8.0 
64.0
19.9 
1.6 
1,487
11,666
308,671
208,052
56,366
44,252
27,045
28,434
12,060
32,647
(21,185)
2,026
614,219
167,295
344,453
82.82
22
26.6 
8.6
54.3
26.0 
2.1 
2,150
13,210
March 2013
March 2014
March 2012
March 2011
0.27
3.46
11
2
668
2,454
4,087
0.14
－
13
2
643
2,303
3,981
0.42 
－
13
2
761
2,270
3,829
0.42 
3.48
12
2
624
2,685
3,990
－
327.3
4.8
14.8
215
3.9
3,426
13.4
1.0
－
305
5.7
17.3
172
3.6
3,351
13.1
1.1
－
155*1
0.94*1
4.8*1
165*1
4.8
3,293
13.3
1.1
－
318.2
5.3
14.3
223
4.2
3,531
13.3
1.5
Note: The values for energy-origin CO2 and Scope 2 (energy-origin CO2) were calculated by 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. 
*1 Non-consolidated basis
*2 Based on a calendar year 
Financial Indicators
Non-Financial Indicators
29.6
27.5
－
30.2
GHG emissions (Scope 1: Energy-origin CO2) 
(10,000 metric tons, NGK Group)
36.7
31.7
－
43.0
GHG emissions (Scope 2: Energy-origin CO2) 
(10,000 metric tons, NGK Group)
GHG emissions (Scope 3) (10,000 metric tons, non-consolidated)
Total water usage (10,000 m3, NGK Group)
VOC emissions (metric tons, NGK Group)
PRTR substance emissions (metric tons, NGK Group)
Total water discharge (10,000 m3, NGK Group)
Waste emissions (10,000 metric tons, NGK Group)
Number of employees (persons, non-consolidated)
Employee breakdown (female) (%, non-consolidated)
Percentage of women among managers (%, non-consolidated)
Lost time incident rate (non-consolidated)*2
Social contribution expenditure (100 million yen, non-consolidated)
Number of directors (persons, non-consolidated)
Number of outside directors (persons, non-consolidated)
Total remuneration of directors (million yen, non-consolidated)
Number of patents held (Japan) (non-consolidated)
Number of patents held (overseas) (non-consolidated)
－
－
－
－
Percentage of women among managers 
(%, overseas NGK Group companies)
49 (1.91)
43 (1.51)
42 (1.45)
53 (2.07)
Number/percentage of disabled employees 
(persons/%, non-consolidated)
Financial and Non-Financial Data
79

March 2017
March 2018
March 2019
March 2020
March 2021
401,266
272,434
65,619
63,212
36,379
60,101
18,653
80,172
(56,452)
(13,013)
759,434
174,150
427,593
112.71
40
35.5 
8.8 
54.9 
22.4 
1.9 
2,520
17,517
March 2016
435,797
289,266
65,633
80,898
53,316
45,437
17,410
59,445
(47,772)
(373)
711,897
163,973
417,972
163.28
38
23.3 
13.3 
57.1 
12.7 
1.7 
2,079
16,657
March 2015
378,665
254,386
62,700
61,577
41,504
30,366
13,942
73,002
(39,495)
(26,000)
702,234
156,203
404,001
127.11
28
22.0 
11.4
55.8
20.2 
2.1 
2,565
16,217
451,125
312,107
68,991
70,026
45,814
71,713
21,100
50,554
(49,413)
22,546
826,243
211,573
472,863
142.42
44
30.9 
10.4 
55.8 
12.9 
1.3 
1,834
18,783
463,504
323,224
75,574
64,705
35,506
105,336
23,271
61,224
(109,743)
3,564
863,636
229,423
489,245
110.35
50
45.3 
7.6 
55.3 
14.6 
1.1 
1,608
20,115
441,956
313,458
73,496
55,000
27,135
93,997
22,928
53,200
(60,830)
(18,796)
833,085
234,400
469,118
84.73
50
59.0 
5.8 
55.0 
16.7 
1.0 
1,417
20,000
452,043
329,061
72,158
50,823
38,496
50,831
22,448
85,641
(51,724)
12,250
908,967
264,244
517,892
121.61
30
24.7
7.9
56.3
16.6
1.3
2,024
19,695
(Millions of yen)
March 2017
March 2018
March 2019
March 2020
March 2021
March 2016
March 2015
0.34 
3.15 
13
2
803
3,038
4,134
0.29 
3.46 
12
2
723
2,907
4,042
0.00 
3.31
12
2
581
2,719
3,911 
0.11 
3.00 
12
3
799
3,191
4,186
0.40 
3.02 
12
3
698
3,352
4,346
0.00 
2.73
13
3
660
3,513
4,485
0.10
2.96
11
3 
715
3,521
4,452
－
409
155.4
163.1
279
5.9
3,937
12.7
2.0 
－
285
6.8
14.0
197
5.9
3,700
12.6
1.8
－
276
6.3
15.4
196
5.7
3,569
12.9
1.8
87.7
432
145.3
154.2
287
5.9
4,142
12.5
2.0 
104.7
453
145.2
127.5
281
5.8
4,119
12.6
2.2
97.7 
433
68.4
76.3
314
5.4
4,224
12.8
2.9
89.3
378
82.9
89.4
253
4.6
4,316
13.0 
3.0
(Millions of yen)
31.7
31.1
29.0
32.0
32.3
30.9
26.4
48.7
44.9
39.4
52
54.5
56.4
49.2
15.3
16.6
－
21.0 
16.0 
20.2
23.1
55 (2.03)
56 (2.18)
56 (2.23)
57 (1.90)
62 (1.92)
135 (2.20)
145 (2.35)
80

Ceramics for semiconductor manufacturing 
equipment
Acid-proof pump
High-voltage insulator
HONEYCERAM®
Inaugural managers
Beryllium-copper master alloy
■ Until 1969 since establishment
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.
■ 1970s to 1990s
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.
1986
A written style of Japanese trade name 
was changed. (Katakana is now used for 
the part, “Gaishi (i.e. Insulator),” where 
Chinese characters were formerly used.). 
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. 
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 
  semiconductor 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.
History of the NGK Group
81

In-vehicle high-precision NOx sensors
Lithium-ion rechargeable batteries, “EnerCera®” 
NAS® batteries
Diesel particulate ﬁlters (DPF)
■ 2000s–
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 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.
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.
2010
Agreed to develop large scale NAS 
battery assets to provide ancillary 
services in the UK.
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.
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
・NGK Group Philosophy is established
・Lithium-ion rechargeable batteries,
  “EnerCera®” is commercialized.
・100th anniversary
2021
・NGK Group Vision is formulated.
・NGK Group Environmental Vision is 
  formulated.
Gasoline particulate ﬁlters (GPF)
Gallium nitride (GaN) wafers
82

Corporate Outline / Stock Information (As of March 31, 2021)
Distribution of Shares
Corporate Outline
Stock Information
The Master Trust Bank of Japan, Ltd. (Trust Account) 
Custody Bank of Japan, Ltd. (Trust Account)
Meiji Yasuda Life Insurance Company 
The Dai-ichi Life Insurance Company, Limited 
MUFG Bank, Ltd. 
National Mutual Insurance Federation of 
Agricultural Cooperatives 
Aioi Nissay Dowa Insurance Co., Ltd. 
Nippon Life Insurance Company
Custody Bank of Japan, Ltd. (Trust Account 7)
State Street Bank West Client – Treaty 505234
43,739
31,026
21,695
21,457
7,204
7,029
4,387
4,313
4,146
3,791
13.81
9.80
6.85
6.77
2.27
2.22
1.38
1.36
1.30
1.19
Total number of shares authorized
735,030,000 shares 
Total number of shares issued
322,211,996 shares
(Including 5,639,001 shares of 
treasury stock)
Total number of shareholders
40,310 persons
Listed stock exchanges
Tokyo Stock Exchange, 
Nagoya Stock Exchange
Major Shareholders
Note: The above list of major shareholders does not include NGK, which has a total of 5,639,001 treasury shares. 
         The shareholding ratios above are calculated based on the number of shares derived by deducting the number of treasury 
shares from the total number of shares issued and by rounding down the calculation results to two decimal places. 
Number of 
shareholders
40,310 persons
Number of shares
322,211 
thousand shares
Japanese corporations
424 persons
(1.0%) 
Foreign corporations 
and others
626 persons
(1.6%) 
Individuals 
and others
39,108 persons
(97.0%) 
Foreign corporations 
and others
72,709 thousand shares
(22.6%)
Japanese corporations
17,062 thousand shares
(5.3%) 
Financial institutions
152 persons
(0.4%) 
Financial 
institutions
188,472 
thousand shares
(58.5%) 
Individuals and others
43,968 thousand shares
(13.6%) 
45
2
NGK 4,316
Consolidated 19,695
5333
Consolidated subsidiaries
Equity-method affiliates
Employees
Stock exchange code
NGK Insulators, Ltd.
2-56 Suda-cho, Mizuho, Nagoya 467-8530, 
Japan Telephone + (81) 52-872-7181
May 5, 1919
69.8 billion yen
452.0 billion yen 
(consolidated, for FY2020)
Company name
Address
Established
Paid-in capital
Net sales
Names of shareholders
Number of shares held
(1,000 shares) 
Ratio to total
(%) 
83

Third-Party Opinion
Professor, Ph. D. in Law (LL.D.), 
Graduate School and Faculty of Safety Science, Kansai University; 
Executive Director of Japan Society for Business Ethics; 
Senior Researcher of Business Ethics Research Center
Dr. Kazuhiko Takano
A significant transformation has been taking place in society 
over the past several years. Since about 2016, the amount of 
sustainability-related investment in Japan has grown rapidly, 
reaching approximately 310 trillion yen by March 31, 2020 and 
accounting for 24.3% of all operating assets*. From a 
corporate value standpoint, Japanese society appears to be 
increasingly supportive of companies that actively address 
ESG (environmental, social, and governance) related issues.
 
The NGK Group aims to address ESG-related issues through its 
core business. The seriousness with which NGK treats these issues 
is evident from this report. It can be seen in the NGK Group Vision: 
Road to 2050, which is the new medium-to-long-term vision for the 
Group. Under this vision, the NGK Group seeks to contribute to 
carbon neutrality through three key development initiatives; namely, 
subnano-ceramic membranes capable of separating CO2 at the 
molecular level, safe and highly efficient zinc rechargeable batteries, 
and ultra-small, ultra-thin batteries that can contribute to a more 
digital society. I feel that society will be strongly supportive of this 
vision and the NGK Group’s efforts, as a global leader, to put its 
unique ceramic technologies to use in achieving it.
 
The Group is also undertaking restructuring as part of its 
efforts to realize this vision. For example, the ESG Management 
Department was established in April 2021 to implement 
ESG-related activities across the NGK Group. Typically, the 
departments responsible for CSR, compliance, and similar 
concerns are referred to as cost centers. However, NGK is 
adopting a new paradigm that treats the ESG Management 
Department as a contributing part of the value-creation process.
 
NGK is also actively addressing governance-related issues. For 
example, independent outside directors now make up one-third of all 
directors (three out of nine directors), and there is a growing number 
of female and non-Japanese vice president appointments. One 
particularly noteworthy aspect of NGK corporate governance is the 
great frequency with which directors and vice president meet to deal 
with management-related issues. These include discussions between 
outside directors, the president, and executive vice presidents in the 
Corporate Council; opinion exchanges between outside directors in 
the Conference of Outside Directors and Outside Audit & Supervisory 
Board Members; and interviews with relevant company personnel by 
Audit & Supervisory Board members and outside directors who are 
part of the Hearings Convened by Audit & Supervisory Board 
Members and Outside Directors. Some of the most commonly 
identified governance-related issues include outside directors’ limited 
ability to gather information and to actually influence executive 
actions through their proposals, but NGK’s efforts show that it is 
making a serious effort to address these issues.
*Source: Global Sustainable Investment Review 2020
1. Notable highlights of NGK Report 2021
The NGK Group deserves praise for having continued to provide a 
stable supply of products throughout the prolonged COVID-19 
pandemic. It is reasonable to attribute the Group’s success in 
implementing thorough infection control measures at its 
production and business sites in Japan and overseas, as well as 
smoothly adapting in other ways, like transitioning to 
work-from-home arrangements, to the active emphasis that it has 
historically placed on BCM (business continuity management).
 
President Shigeru Kobayashi, who is continuing the corporate 
culture reforms pursued by Chairman Taku Oshima, states in this 
report that his aim is to promote a climate of openness, characterized 
by free and honest discussion, where employees are empowered to 
tackle challenges and are stimulated creatively. As we adapt to new 
ways of working in this era of the “new normal,” I hope that questions 
about how best to create such workplace environments will be 
explored even further. In 1999, Professor Amy Edmondson argued that 
organizational efficiency is improved when there is “a shared belief 
held by members of a team that the team is safe for interpersonal risk 
taking,” and I believe that cultivating this sort of corporate environment 
is the key to further growth and development of the NGK Group.
 
The NGK Group has also expanded the scope of its 
compliance-related efforts. In April 2021, NGK created its Basic 
Guidelines for Compliance Activities, which are based in part on 
guidelines put out by the U.S. Department of Justice and which 
represent a wonderful effort at summarizing how the NGK Group 
approaches compliance. In the future, NGK business will offer 
customers not only products but also services and solutions, and 
moving into new areas of business will bring with it new 
compliance-related risks. However, by establishing a shared, basic 
approach to compliance, the Group can feel confident as it moves 
into these new areas. I hope that these Basic Guidelines for 
Compliance Activities will permeate throughout the entire Group.
2. Expectations for further development
In 2019, NGK marked the 100th anniversary of its founding. I 
praise the company for having not rested on its laurels as a global 
leader, but instead having used its 100th anniversary as an 
opportunity to actively pursue transformation as part of a third 
foundational period by revising its NGK Group Philosophy and 
creating the new NGK Group Vision: Road to 2050. I also think it is 
wonderful that the Group Vision was formulated from a process 
that involved collective discussion by top management and a 
diverse cross-section of employees about NGK’s 30-year vision for 
“what we want to be.”
 
The NGK Report for this fiscal year does an outstanding job of 
presenting the road ahead for the Group as it pursues core 
business activities, which will help address the anticipated social 
challenges of the world 30 years hence. I offer my best wishes to 
the NGK Group and look forward to seeing it grow and develop 
even further as it pursues its new medium-to-long-term vision.
3. Encouragement
84

NGK Group Website
For more detailed information of the NGK Group, please visit the following websites.
NGK Sustainability Data Book 2021 (PDF) is also available. It gives detailed ESG information. 
Company Information 
https://www.ngk-insulators.com/en/info/
Investor Relations
https://www.ngk-insulators.com/en/ir/
Sustainability
https://www.ngk-insulators.com/en/sustainability/
NGK Sustainability Data Book 2021
https://www.ngk-insulators.com/en/sustainability/pdf/2021/ngk2021.pdf
NGK Sustainability Data Book 2021
85

NGK Group
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
Group Companies
Japan
ENERGY SUPPORT CORPORATION
KANSAI ENERGYS CORPORATION
KYUSHU ENERGYS CO., LTD.
HOKURIKU ENERGYS CORPORATION
ENERGYS SANGYO CORPORATION
AKECHI INSULATORS, LTD. 
NGK OKHOTSK, LTD. 
NGK METEX CORPORATION
NGK FINE MOLDS, LTD.
NGK CERAMIC DEVICE CO., LTD.
NGK ELECTRONICS DEVICES, INC. 
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.
America
NGK-LOCKE, INC.
NGK CERAMICS USA, INC.
NGK AUTOMOTIVE CERAMICS USA, INC.
NGK MATERIAL USA, INC.
NGK CERAMICS MEXICO, S. DE R.L. DE C.V.
NGK METALS CORPORATION
NGK INSULATORS OF CANADA, LTD.
FM INDUSTRIES, INC.
NGK ELECTRONICS USA, INC.
Europe, Africa
NGK ITALY S.R.L.
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.
ENERGYS ELECTRIC SHANGHAI CORPORATION
NGK ENERGYS MYANMAR CO., LTD.
NGK ELECTRONICS DEVICES (M) SDN. BHD.
NGK GLOBETRONICS TECHNOLOGY SDN. BHD.
86

Data by Area
19,695
(down 1.5% year-on-year)
Note: Full-time regular employees
Distribution of
employees
Others
1%
Asia
22%
North/
Central America
15%
Japan  
37%
Europe  
25%
Distribution of
net sales
Others
2%
Asia  
29%
North/
Central America
20%
Japan  
28%
Europe  
21%
America
3,059
Employees
89.2 billion yen
Net sales
Europe
4,841
Employees
95.9 billion yen
Net sales
Asia
4,376
Employees
130.3 billion yen
Net sales
Japan
7,254
Employees
127.5 billion yen
Net sales
Others
165
Employees
9.2 billion yen
Net sales
Number of employees
452 
billion yen
(up 2.3% year-on-year)
Consolidated net sales
45
Consolidated subsidiaries
2
Equity-method affiliates
87

External Evaluation / Editorial Policy
External Evaluation
In November 2020, NGK was selected for the 5th consecutive year for the Dow Jones Sustainability Asia Pacific Index in the Dow 
Jones Sustainability Indices, a major index for socially responsible investment.
 
NGK has been honored with other selections. These include the MSCI Japan ESG Select Leaders Index, an operator of Japan’s 
Government Pension Investment Fund (GPIF); the MSCI Japan Empowering Women (WIN) Index; and the 2021 Certified Health & 
Productivity Management Outstanding Organizations Recognition Program (White 500), managed by Japan’s Ministry of Economy, 
Trade and Industry (METI) and the Nippon Kenko Kaigi. 
The publication of the NGK Report 2021 is carried out with 
the intent of communicating to our stakeholders what 
strengths the NGK Group has to offer, how we are creating 
value, how we plan to grow further and how we are 
contributing to sustainable development of society and the 
entire world. This report has been prepared and edited in line 
with the International Integrated Reporting Framework of the 
International Integrated Reporting Council (IIRC) and the 
Guidance for Collaborative Value Creation of Japan’s Ministry 
of Economy, Trade and Industry. Detailed ESG information is 
given in the NGK Sustainability Data Book 2021.
■Target Organization
Indicated along with each article and data report included in 
this data book.
■Target Period
April 1, 2020 to March 31, 2021
■Forward-looking Statements
This report contains forward-looking statements such as 
performance forecasts. These forward-looking statements 
are based on things such as information currently available 
to NGK and on certain assumptions judged to be rational. 
Please note that actual performance may differ from forecasts due to various 
unforeseen reasons.
Editorial Policy
THE INCLUSION OF [ISSUER ENTITY NAME] 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 [ISSUER 
ENTITY NAME] BY MSCI OR ANY OF ITS AFFILIATES. 
HE 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. 
Ministry of Health, Labor and 
Welfare “L-boshi” certification of 
corporate excellence in the 
promotion of women’s active 
participation Certification level 3
Ministry of Health, Labor and 
Welfare Next-generation support 
certification logo “Kurumin” 
88

Published in September 2021
Revised in November 2021
Plate making: This report has been published using computer-to-plate (CTP) technology to eliminate the need for the ﬁlm and other materials required in the conventional platemaking process.
Printing: A waterless printing method has been adopted to signiﬁcantly reduce the usage of developer chemicals and processing water, thereby decreasing the amount of hazardous effluent, 
compared with conventional methods. 
Ink: To replace petroleum-based inks, vegetable-based inks with the volatile organic compounds (VOCs) content reduced to below 1% have been employed. 
Design: This report has been designed, with a focus on typeface, color scheme and diagram style, to improve legibility and readability. 
NAS, HONEYCERAM, HICERAM, and EnerCera are trademarks of NGK INSULATORS, LTD., registered in the U.S.
2-56, Suda-cho, Mizuho, Nagoya 467-8530, Japan
https://www.ngk-insulators.com/en/
For inquiries about this report, please contact
ESG Management Department
Te l: +(81) 52-872-7597 
E-mail: pr-ofﬁce@ngk.co.jp