December 1, 2020
NTN CORPORATION
2020/12/1

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Introduction of Today's Participants Director, Representative Executive Officer, President
Hiroshi Ohkubo
 Corporate Value Promotion Dept. Manager, CSR Headquarters
Kouhei Iguchi
 EHS (Environment, Health and Safety) Integrated Management
Department Manager
Masayuki Yamazaki Corporate Communications Dept. Manager, Corporate Strategy
Headquarters
Youichiro Mochida
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Table of Contents
1. Toward the Realization of "NAMERAKA society"Director, Representative Executive Officer, President Hiroshi Ohkubo

2. Activity Report
Director, Representative Executive Officer, President Hiroshi Ohkubo
EHS (Environment, Health and Safety) Integrated Management
Department Manager Masayuki Yamazaki
Corporate Value Promotion Dept. Manager, CSR Headquarters
Kouhei Iguchi

3. Q&A session
2020/12/1

3

Objectives of ESG Meeting
In addition to gaining an understanding of our ESG initiatives and progress,
we will use this dialog to improve our future activities.

[Our Challenges in the Previous Meeting in 2019]1) Setting Medium-to Long-Term Targets for Environment2) Strengthening Human Rights Efforts
Social issues anticipated in future
Climate change
Growth ofEmerging Countries
Rising Human
Rights AwarenessChanges in
Demographics
2020/12/1

Environmental
Pollution
Technological Innovation
and Changes inIndustrial Structure

Trade issues
4Opinions received at the previous meeting in 2019
Items expected to be improved by NTN's ESG initiatives
 Investor confidence is likely to increase as compensation becomes
more transparent, including long-term and short-term weighting and
KPIs.
 Diversity of Board of Directors.
Desired topics and other comments for the next ESG Meeting I would like to hear more specific details on governance initiatives.
 Explanation including progress on issues (setting medium-to long-termtargets for environment and strengthening human rights initiatives).
 Some SCOPE3 based stories in environment.
 In society, human rights initiatives and the overall picture of the supply
chain.
 Are the contents of the NTN PROUD AWARD contributing to corporate
value?
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Table of Contents
1. Toward the Realization of "NAMERAKA society"Director, Representative Executive Officer, President Hiroshi Ohkubo

2. Activity Report
Director, Representative Executive Officer, President Hiroshi Ohkubo
EHS (Environment, Health and Safety) Integrated Management
Department Manager Masayuki Yamazaki
Corporate Value Promotion Dept. Manager, CSR Headquarters
Kouhei Iguchi

3. Q&A session
2020/12/1

6

Toward the Realization of "NAMERAKA Society"
NTN aims to realize a "NAMERAKA Society"
NAMERAKA Society = A society where people can easily lead a secure andfulfilling life in harmony with nature.

By solving social issues through creating new technologies anddeveloping new products,
we will contribute to the development of a sustainable society.

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NTN's purpose of existence
In our Corporate Philosophy, the Founders’ Spirit has been
passed down from founders Noboru Niwa and Jiro Nishizono
who achieved domestic production of bearings.
" Frontier Spirit "" Coexistence andCo-prosperity Spirit "Noboru Niwa

Jiro Nishizono

Corporate Philosophy:

We shall contribute to international society throughcreating new technologies and developing new products.
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NTN's purpose of existence
In December 2019, we established the NTN Group's Management Policy topresent our management philosophy and stance to put into practice thecorporate philosophy embodied in our founders' beliefs.
The NTN Group aims to realize a "NAMERAKA Society" through practicing its corporate philosophy. As
a company that is trusted and needed by communities, including stakeholders, we engage in businessactivities with an emphasis on respect for human rights and compliance.
■ Stance to Stakeholders

2020/12/1 ⇒ Practicing the Corporate Philosophy globally (See p.29 for details)

9Positioning of ESG Initiatives
In FY2020 as “Crisis response period” and FY2021-FY2023 as “Mid-term Plan Ⅱ”

Strengthening ESG Initiatives through Business Activities
DRIVE NTN100
Basic Policy

NTN in 10 year

Drive Forward Transformation of Business Structure for the new 100 years

Average annu

Main
Strategy

Digitalization(latest digital technology) X Resources(management resources that NTN has developed)
sales growth ra
Innovation(development of innovative technologies, products and services)
New Med-term Plan will Underbe
Variable cost reformation(procurement reformation)
announced by March 2021
Efficiency improvement(achivement of the world's No.1 productivity and quality)
Consideration
Mid-Term Plan I(FY2018 ~ FY2019)
Crisis reponse period (FY2020)

Ensure the healthand safety of employees

Improve profitability andinvestment efficiency of
existing products andbusinesses

Materialize new businesses
by creating new products andbusinessies

Secure cash andcontinue businessSelection of new businesses
and review the allocationof resources

Establish a management system
to facilitate reform of businessstructure

Prepare for
future growth

Improve profitability andinvestment efficiency of existingproducts and businesses

Business
Business
Management
Operation
Policies
Policies

Respond to SDGs

Work on natural energy product business that
contribute to environmentally friendly society
2020/12/1

Mid-Term Plan II(FY2021 ~ FY2023)

Management systemenhancement

Operating Marg
10% or more

Asset turnove
1.0 times or mo

Foreign exchan
Sensitivity
50% reduction

Business continuity, structural improvement(increase in added value, reduction in costs)

Have awareness of Sustainable Development Goals(SDGs) and contribute to solve social issues as a
global Company
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Identification of Materiality
Identify fields in which NTN can specifically leverage its strengths and fields in which it
can fulfill its social responsibilities in solving social issues through its business activities※ A several examples are shown below from materiality idea

★ Strengthening Positive Impact★ Minimizing negative impact

Creating Value by Leveraging NTN's Strengths

Pursuing Our Social Responsibility to Global Issues

Leveraging our uniqueness to create environmentcontributing products and create new businesses
based on social issues

Minimize negative impacts on humans and the planet(Environment issues, human rights issues, etc.)

E
E

Reducing energy loss

EnvironSustainable society using
ment

natural energy
S
Safety and comfort
Society

2020/12/1

Environment

S
Society

Responding to Climate
ChangeRespect for human rights
Human Resource
Development

G
Governance

Strengthening Governance11

★ Strengthening Positive Impact
Aftermarket business

Values offered to society

SDGs

Our Vision

Reducing energy loss
Transformation from a “Manufacturing
Company” into a “Company that Delivers
Values to Customers through Products
and Services”

Industrial machinery Business

Our Vision
NTN will become a company that
customers in the industrial machinery
market rely on most for its exceptional
technological competence

Automotive Business
Our Vision
As an indispensable presence for the
automotive market, NTN will become acompany that offers products andservices for vehicles all over the world
Green Energy Products BusinessContributing to
reduction of energy
consumption by
reducing torque,more compact andlight weight

Sustainable society using natural energy
Contributing to therealization of a low-carbon
society through thecreation of renewableenergy for local production
and local consumption

Safety and comfort

Our Vision
From "BtoB" to "BtoC,"
Build sales and service network
for green energy products

2020/12/1

Supporting People's
lives through highquality and reliability

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Reducing energy loss
Development of "Low Friction Hub Bearing III"
Reducing rotational friction by 62%
Improved fuel efficiency of automotive and tightened CO2
emission standards

Development of low friction grease
Employing a seals structure with labyrinth

Rotational friction reduced by 62% compared toconventional products
Improved fuel efficiency by approximately 0.53%
Increased operating life and resistance to fretting

Friction ratio

On hub bearings that support wheel rotation are required to further reducerotational friction

Conventional
product

Low
Friction
Hub
Bearing I

Low
Friction
Hub
Bearing II

Low
Friction
Hub
Bearing III

Contributing to low fuel consumption of automotive
and Improving environment performance
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Sustainable society using natural energy
Implementation of Long Distance WirelessTransmission Experiments between Bases for building
disaster mitigation and surveillance systems using
renewable energy and IT
The occurrence of a situation where power outages or telecommunications
shutdowns due to a natural disaster make it difficult to understand thesituation of the disaster and conduct relief activities
Osaka University

Through three independent power supply
u n i t s , N T N G r e e n P o we r S t a t i o n ,information on an assumed disastersituation were transmitted and received
using long-distance wireless system to

Wi-Fi
150m

Wi-Fi
800m

Wi-Fi area

Wi-Fi
2.5 kmSchool in Suita city

Wi-Fi area

Sending
text/pictures
Receiving

Send a message to a location 2.5
kilometers away to check the damage
caused by camera images

text/pictures

SensorContribute to the safety and security of local
communities by building disaster mitigation andsurveillance system
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Safety and comfort
Sophistication andutilization of control
technology to realize
labor saving

Utilizing microscopic
coating technology inthe regenerative
medicine field

Providing products andservices that contributeto disaster mitigationand disaster prevention

Begin mass production of i-WRIST
for use in appearance inspection

iPS-derived cells formed as artificial
three-dimensional structure by proprietary
microscopic coating technology

Development of N3 (N-Cube), a Container
Type Transportable Independent Power
Supply that generates power with naturalenergy: wind, water, and solar light

Supporting regenerative medicine anddrug discovery that will lead to early
detection and treatment

Provided as a useful power generation
solution in the event of a disaster

The module products can replaceinspection tasks done by people,
contributing to labor-saving andautomation at manufacturing sites

Wrist Joint Module "i-WRIST"

Applied our precision positioning technology andthe microscopic coating technology cultivatedthrough repair devices“N3 (N-cube)” supported the disaster areaof Typhoon No.15 in 2019

By providing products and services with originaltechnologies, Supporting Safe and Secure Living
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Table of Contents
1. Toward the Realization of "NAMERAKA society"Director, Representative Executive Officer, President Hiroshi Ohkubo

2. Activity Report
Director, Representative Executive Officer, President Hiroshi Ohkubo
EHS (Environment, Health and Safety) Integrated Management
Department Manager Masayuki Yamazaki
Corporate Value Promotion Dept. Manager, CSR Headquarters
Kouhei Iguchi

3. Q&A session
2020/12/1

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G

History of Corporate Governance

Strengthening and enhancing corporate governance is one of our top management priorities● To make management more efficient and robust● Prompt and accurate information disclosure
From 2000
Organization
design⇒ Increasing Management Transparency

From 2010

In 2019
Company with Nominating Committee, etc.

Company with Board of Company Auditor
In 2004 Start of Operating Officer System
In 2011

In 2008

OutsideDirector

From 2020

An Outside Director is appointed Increased to 2 members

Board ofDirectors

In 2019

In 2020

5 members

Woman Appointed

In 2015

In 2020

The effectiveness is assessed

Enhancing Diversity

In 2015

Compliance

Establishment of a Compliance Committee

Internal
Control

In 2008

Risk
Management

In 2008

Establishment ofInternal Audit Dept.

2020/12/1

Establishment of Fair Trade Promoting Department

Establishment of Risk Management Committee

Sustainability

Corporate
Philosophy

In 2014

In 2006

In 2019

Establishment of CSR Committee

Sustainability Committee

In 1990

In 2018

In 2020

Adoption of Corporate Philosophy

New corporate
philosophy system

Management Policy

17

Management structureG

Establishing a prompt decision-making structure and operational execution organization
Improving management transparency and fairness

11 Executive Officers
Role: Execution of business

11 Directors(Including 5 Outside Directors)
Role: Supervision
Deciding management policies, etc.
※ Members as of July 30, 2020

[Results of transition to a Company with Nominating Committee, etc.]
・ Executive Officers are responsible for business execution and
Directors are dedicated to supervise
・ Decrease in the number of meetings held・ To accelerate and improve the efficiency of decision-making
・ Activation of discussions by Executive Officers

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Director Diversification and Balancing G
In July 2020, a female Director (Outside Director) was appointed for the first time.
By integrating diverse value, we will achieve sustainable improvement ofcorporate value.

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Activity overview of Board of Directors and Committees
Function

Number ofmeetings

G

Major Discussions(April 2,019 to March 2020)

Board ofDirectors

・ Decide the basic management policy・ Supervise the execution of duties of Directorand Executive Officers

14
times

・Future action regarding a
succession plan of top
management (CEO)・ Decide candidates for Directors, which is
proposed to the General Meeting of
Shareholders

5
times

・ Standards for selection of Directors
・ Skill matrix
・ Standards regarding theindependence of Outside Directors

Nominating
Committee

Compensation
Committee

・ Decide on the policy for compensation for
Directors and Executive Officers, and detailsof compensation for individual persons

4
times

・ Reduction of compensation for
Directors and Executive Officers
・ Performance target of BIP Trust forcompensation for Officers

Audit
Committee

・ Audit the execution of duties of Directors andExecutive Officers
・ Decide on the content of a proposal
regarding appointment/removal of theaccounting audit, which is submitted to theGeneral Meeting of Shareholders

10
times

・ Formulation of the Audit Committee’s
auditing standards
・ Formulation of auditing policies andauditing plans
・ Assessment of the selection of
independent auditors※ From April to June 2019: Meeting as Compensation Advisory Committee and Board of Corporate Auditors

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Table of Contents
1. Toward the Realization of "NAMERAKA society"Director, Representative Executive Officer, President Hiroshi Ohkubo

2. Activity Report
Director, Representative Executive Officer, President Hiroshi Ohkubo
EHS (Environment, Health and Safety) Integrated Management
Department Manager Masayuki Yamazaki
Corporate Value Promotion Dept. Manager, CSR Headquarters
Kouhei Iguchi

3. Q&A session
2020/12/1

21

Measures against climate change

E

In the future, CO2 emissions generated by business activities will be close to zero.
At the same time, we will reduce CO2 generated (consumed) when using products due
to advancements in the company's technology.

Contribution to CO2 reduction:
1.5 million tons/year

CO2 generated (consumed) whenusing products
CO2 generated by NTN's
business activities

Offset in 20XX
Provide high-grade
environment-contributing
products

CO2 generated

SBT,RE100
Year ended
March 31, 1998

2020/12/1

Year ended
March 31, 2020

Power generation bygreen energy products
CO2 reduced

22

Reducing CO2 Emissions Generated by Business Operations

E

Reducing CO2 emissions and emissions intensity throughout business activities
CO2 Emissions/Emissions Intensities [Japan]

CO2 Emissions/Emissions Intensities [Overseas]※ Supply Chain Emissions (Scope 3) for the Fiscal Year Ended March 31, 2020 are disclosed on the Company's website

CO2 Emissions and Emissions Intensity in Logistics

Use of Renewable Energy

NTN-AT (Germany) switched to renewableenergy-derived electricity in total

2020/12/1

Nanjin NTN Corp. (China)
installed14,000 solar panels

Contribute to measures against climate change in business activities

23

Reducing CO2 Emissions When Using ProductsE

Accelerate reduction of energy losses through visualization of contribution to CO2
reduction from our main products, driveshafts and hub bearings, and green energy
products, and advancement of technological and development capabilities
Contribution to CO2 reduction from driveshafts andhub bearings

Reducing energy loss through pursuit of tribological technologies
Awarded the Mobility Components Award of “CHO”
MONODZUKURI Innovative Parts and Components Award

Develop natural energy products

N3 (N-Cube)at Kyonan-machi, Chiba

2020/12/1

NTN Green Power
StationDevelopment of “Low Friction Hub
Bearing III” that reduces rotational
friction by 62%

Orders received for mass
production of Ultra-low Friction
Sealed Ball Bearing for EV andHEV transmissions

Mass production of Wrist Joint Module "i-WRIST“
that contributes to automation and labor saving at production sites

In-house technologies for measures against climate change

24

Resource RecyclingE

Pursuit of Circular Economy (Recycle-Oriented Economy) throughProduct Recycling
Refurbish business launched for large-size industrial bearings
Bearings are collected and delivered as refurbished products
after repair or replacement
Regarding large bearings with bore diameters of one
meter, customer needs to use them for long periodsof time, such as by replacing or repairing parts,
rather than replacing the entire bearing both inJapan and abroad

Focus on expanding refurbish businesses as pursuitof the circular economy

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Table of Contents
1. Toward the Realization of "NAMERAKA society"Director, Representative Executive Officer, President Hiroshi Ohkubo

2. Activity Report
Director, Representative Executive Officer, President Hiroshi Ohkubo
EHS (Environment, Health and Safety) Integrated Management
Department Manager Masayuki Yamazaki
Corporate Value Promotion Dept. Manager, CSR Headquarters
Kouhei Iguchi

3. Q&A session
2020/12/1

26

Respect for Human Rights and Ensuring the Safety of Employees

S

Respect for Respect the dignity and rights of all people in our business activities,
and call on our business partners and other parties not to infringe
human rights
upon the dignity and rights of people or discriminate unjustly.

Established the Human Rights Policy to further strengthen and promote
the NTN Group's human rights initiatives.(July 2020)
Prevention
and mitigation
Risk
identification of negative/evaluation impacts

P
A

Human Rights
PolicyInformation
disclosure<Ensuring the Safety of Employees>

DC

Additionalverification

Establishment of a mechanism forhuman rights due diligence

Established Safety and Health Basic Policy to create a workplace environment
where everyone in the NTN Group can work actively, safely and healthy (July 2020)⇒ Compatible with Crisis Response Period's priority measure “Ensure the health and safety of employees"
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Human Resource Development (Practicing the Corporate
Philosophy Globally)

Human Resource
Development

S

Promote equal opportunities in capacity building, promotion, anddeployment to contribute to a sustainable society and increase
the potential of all employees“Corporate Philosophy Dialog”“NTN PROUD AWARD”

A workshop in which employees share experiences related tothe corporate philosophy and deepen understanding andempathy of the corporate philosophy

System to recognize the practice of the corporate philosophy
for all employees in NTN Group (established in 2018)⇒ Approximately 250 employees/year participatedin the event in Japan, and expansion to overseas
bases⇒ In the second time in 2019,76 teams participated from around the world

In the first overseas dialog in Thailand, employees
talks in home language and made presentation
online to the head office (October, 2020)

2020/12/1

8 of the awarded teams participated in the award ceremony for thesecond time, and China received President Award for its efforts totransform sales activities localized to the Chinese marketplace(December, 2019)28

"NTN PROUD AWARD" practice of the Corporate Philosophy

S

Ideas for practicing Corporate Philosophy  Response to Social Issues  Social Significance/Motivation<Example of the 1st Award Theme>
Initiatives for inspection robots to replace human eyes
Parallel link high speed angle

 Expanded application of "parallel link high speed angle
control equipment
control equipment" developed by New Product Development
R&D Center.
Camera for Focus on the "eye inspection" that is struggling in theinspection
Japanese Monozukuri.
Inspection
 Attach a camera at the edge of a parallel link and madeObjectstrial “appearance inspection equipment."↓■ New inquiry<Members>
To automatize visual inspection process of
New Product Development R&D Center: project
manager 1 person, regular employee 1 person
palm-sized parts for car air conditioners
R1 Project: project manager 1 person, regular■ Project launchedemployee 2 persons
R1 Project launched to establish mass
Industrial Machinery Sales Engineering
production system
Department: project manager 1 person<Examples of the Second Award Theme>"Ultra-low Friction Seal" InitiativesTwo types of transmission bearings are available: with seals or special heat treatment
None of them does not fulfill operating life, torque, and cost at the same time
Pursuing compatibility between low friction and long operating life
Breaking fixed concepts and using creative ideas, ultra-low friction seal
has been developed↓■ Prototype order received for Company A■ Response to study associations, academic societies, exhibitions,
technical presentations and technical papers
Ball bearing with ultra-low friction seal
■ Setting life factor for the first time for seals

Response to Social Issues

SDGs● Response to thedecline in theworking population
by decreasing
birthrate and aging
population● Technologicalinnovation

Safety and comfort
Supporting People's
lives through highquality and reliability● Contribution to
reducing CO2
emissions● TechnologicalInnovation<Members>
Advanced Technology R&D Center: regular employee 1 person, Application Engineering Dept.: project
manager 1 person, Utsunomiya Automotive Sales Office: regular employee 1 person, Automotive Testing
Dept.: regular employee 1 person, Automotive Bearing Engineering Dept.: regular employee 4 persons

2020/12/1

Reducing energy loss

29

Toward the Future
New Medium-term Management Plan (April 2021 to March 2024) will further
accelerate its efforts to realize a sustainable society.

[Challenges we will tackle in the future]

Contributing to theachievement of SDGs

1) Identification of Materiality/Target Setting2) Drop into business strategy

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Digitalization, Resources, Innovation, Variable cost reformation, Efficiency improvement
NTN Transformation for New 100years

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