March 17, 2015

NTN Corporation

Contents
I. Long-term Vision: “Our Vision”
II. New Medium-term Management Plan
1. Basic Policy
2. Company-wide Targets
3. Main Themes
4. Plans by Business Sector
5. Plans by Region
6. Main Management Indices•This presentation and comments made in this conference or during the following Q&A session include forward-looking statements about Management
expectations for future performance and future business strategies.

•

These statements represent the best judgment of the management of the company based on the information currently available. However, there can be
no assurance that future results will meet any expectation, estimate or projection conveyed by these statements or comments. Actual results may differ
materially from management projections depending on various factors such as changes in product demand, exchange rates and interest rates andcontingent liabilities.

3/17/20152

I. Long-term Vision: “Our Vision”(1) A company where its corporate philosophy is understood by all employees
around the world and where all employees think and act for themselves– A company where all employees take action based on the corporate philosophy by complying
with the law and regulations, and contribute to society– A company that grows daily, and where each and every employee can think and act forthemselves(2) A company with original new products and services, appreciated for its highquality and functions, and has a global presence– A company with world top-class technology, and makes use of them to conduct businessaround the world– A monozukuri company seeking high quality and technology– A company that keep challenging to the most advanced leading-edge research andtechnology(3) A company where everyone involved with NTN be able to be proud of the "NTN"
brand
3/17/20153

Long-term Objectives
Operating margin to
10 to 15%
Net sales todouble current
figuresCompany's
100th
anniversary

March 2018

Rapid Advance21

3/17/2015

GCA
21

For theNext.
2010

GlobalAdvance2013

Revival2014

FY20254

II. New Medium-term Management Plan """ -NTN Transformation for Next 100-

“

(1) Company’s 100th anniversary in FY2017(2) “Our Vision” to continue growing for the next 100 years
Three years for transformation and a building foundation to achieve these Period: April 2015 to March 2018
Our Vision(1) A company where its corporate philosophy is understood by all employees around the world
and where all employees think and act for themselves(2) A company with original new products and services, appreciated for its high quality and functions,and has a global presence(3) A company where everyone involved with NTN is able to be proud of the "NTN" brand"Revival 2014"
FY2013 to FY2014"Reform Business
Structure to Generate
Profit"3/17/2015

New Medium-termManagement Plan
"NTN100"

Company's
100th
anniversary

FY2015 to FY2017“Base period for Our Vision"5

1. Basic Policies of ""Implement main policies based on 3 Basic Policies to become aco-creative partner company for customers
ASEAN, etc.
China
EuropeAmericas
Japan

Business
unit

Product
axis

Concentrate resources(personnel, materials andcash) on strategic areas
Reform business structurefrom “volume” to “value” togenerate profit

Strengthen management andfinancial foundations
3/17/20156

2. Company-wide Targets of ""Company's
100th
anniversary

Medium-termManagementPlan

3/17/2015

GCA 21For the Next.
2010

GA 2013

Revival 2014
復活2014

NTN1007

Review of "Revival 2014"
・ Issues remain with "Reform Business Structure to Generate profit"・ Also clarify the issues toward the next 100 years

Review of "Revival 2014"•

The aftermarket business system
was strengthened and the target
amount achieved, however thevolume was insufficient•

Operating margins for the
automotive business exceededplans, however the effects of
exchange rates was significant•

Continued growth requires not only
existing products and businesses,
but urgently requires the creation of
new business3/17/2015

Future Major Issues•

Expand the highly profitable
aftermarket business evenfurther•

Automotive products, in particular•

Urgent need to develop new
business areas following on frombearings and CVJs

improvements to profits for CVJ

8

3. Main Themes of ""Major Themes(2) Expand Aftermarket Business(3) Structural Reform of the Driveshaft businessProfitability

Foundation(4) “Monozukuri” with Next-generation Technology

Strategies by business

Growth(1) Develop Businesses in New Areas(5) Strengthen the Management Foundation(6) Strengthen the Financial Foundation
Strategy by function

3/17/20159GrowthMajor Theme(1) Develop Businesses in New Areas"Develop business in new areas fusing NTN's technology and knowhow"
Current Status and Issues•

Hub bearings for automobiles:
World’s No. 1 share•

CVJ for automobiles:
World’s No. 2 share••

Strength in large and precision
bearings for aircraft, rolling stock
and wind turbines, and composite
material products
Existing products and businesses,
as well as new products andbusinesses are required

3/17/2015

Target•Search for ideas for new
businesses instead of being limited
to existing areas•

Utilize accumulated technology andknowhow, as well as strengthen
external links to fuse technology
with ideas•

Target new markets expected to
grow in the future with unique
technology

10GrowthMajor Theme(1) Develop Businesses in New Areas
Four new business areas
Develop business in new areas fusing
NTN's technology and knowhow

Energy Business

EV Business“Using Natural Energy”“Electrifying Automobiles,
Universities

Research
institutions

Other
companies

Robot-related Business“Working and Living with
People”

3/17/2015

Revolutionizing Safety”

Government
agencies

Government-industry-academia
collaboration
Tier 1 supplier collaboration

Service,
Solution Business“Utilizing Big Data”

11Energy Business: "Using Natural Energy"
Sales targets

Main strategies

100 million yen

Roll-out of business utilizing innovative technology
Developing markets for the natural energy field
Covers wind and hydroelectric power generation,and storage device businesses

500

Utilized technology•••

High-efficiency blade technology
Rolling bearing technology
Magnetic materials technology

0

2015

Market potential

Vertical Axis
Wind Turbine

3/17/2015

Micro Hydro Turbine

2020

2025

• Replace existing energy sources• Increased uptake of micro-grid• Increased uptake of zero energy houses

Changes in power generation capacity with natural energy
Unsubsidized:

Power generation capacity(terawatt-hours)

Horizontal Axis
Wind Turbine

億円

Other
BioenergyWind onshore
Solar PV

Subsidized:
Other
BioenergyWind onshore
Solar PVIEA 2014
Source:IEAJuly(2014)

12

EV Business:"Electrifying Automobiles, Revolutionizing Safety"
Sales targets

Main strategies

300

Develop and propose system products for"driving," "turning" and "stopping" functions

100 million yen

Utilized technology
0・ Unique machinery elemental technology that contributes to2015
more compact and lightweight advantages(In-wheel Motor, Electric Braking System, Steer-by-wire)
Market potential
・ Control technology that includes motors and inverters

億円
2020

2025

・ Better CO2 emission controls
・ Increased uptake of automated driving
Increasing numbers of next-generation automobiles

Electric commuter "Q’mo"

In-wheel motor
systemElectromechanical brake system

3/17/2015

Quantity (million vehicles)

Steer-by-wire
SystemFuel cell vehicles
Electric vehicles
Plug-in hybrid vehicles
Hybrid vehicles
Internal combustion
engine vehicles

Source:IEA
IEA 2014
July(2014)13

Robot-related Business:"Working and Living with People"
Sales targets

Main strategies

Adapt seeds unique technology to suit new needs, anddevelop businessRoll out products developed within the group globally
Pro-active collaboration with external companies,
including manufacturing/sales

Utilized technology

200

0

億円
2015

Market potential• Precision positioning technology such as thelinear module• Compact actuator technology• Unique, high-precision and high-speed parallel
Parallel link
link mechanism

100 million yen

2020

2025

• Working and living with people with“monozukuri" and the "service field"• For growth areas such as edical,
welfare and nursing( Trillion yen)

Future markets for robotics technologies

Lifestyle services
Secure and safe public
field
Monozukuri, RT products

Lifestyle services field

Various linear modules
Secure and safe public field

Monozukuri, RT product field

2005
Ball screw actuators

3/17/2015

Electric actuators

2010

2015

2020

2025

2030

Source: Japan Society for the Promotionof Machine Industry (2007)
機械振興協会２００７

14Service, Solution Business: "Utilizing Big Data"
Market potential

Main strategies
Shift from providing products,
to providing services and solutions••

Utilized technology•

Better infrastructure maintenance
Shift from regular maintenance toconstant monitoring
Utilize Big Data

• Bearing condition monitoring technology CMS
Handheld diagnostic• Bearing diagnostics technology
device• Structural degradation sensing technology

Change in size of the maintenance management
marketEnergy supply, industrial infrastructure

Lifestyle, urban
About 1.4
infrastructure
timesPower infrastructure

Wireless measurement unit

Public structures

Condition monitoring system
Infrastructure andstructures

Wind power
generator
Nacelle section

3/17/20152010
Monitoring service

2015

2020

2030

Source:Fuji-Keizai
富士経済
２０１４ (2014)15

GrowthMajor Theme(2) Expand Aftermarket Business"World's No. 1 customer satisfaction level with product lineup and engineering services"

Current Status and Issues

TargetEstablish Aftermarket Business
Headquarters and strengthen
system (October 2013)•

Excellent product lineup and shorter
lead-time from ordering to delivery•

Expand engineering services•

Engineering services at customer's
actual field of operations•

Approach growth markets andspecific industries•

Automotive aftermarket product(auto parts) business in Europe•(100 million yen)

2,000
1,500

•

Insufficient presence in emerging
markets•

Strong and weak businesses exist
depending on industry

3/17/2015

1500
1115

1,000

Automotive

500

Industrial
machinery

0+35%Aftermarket sales plan

2014

2015

2016

2017

16

GrowthMajor Theme(2) Expand Aftermarket Business
Important measures-1

1. Enhance product lineup and shorten lead-time Roll out Japan's No. 1 product lineup globally Establish central warehouse
dedicated to the aftermarket
 Shorten the lead-time from ordering
to shipment
 Develop global systemcapable of deliveries within 24 hours

Warehouse dedicated toaftermarket in Europe

Technical service unit

2. Strengthen MRO activities
 Expand the technical service units
that are running in Japan, Europe,
Americas and China, to emerging countries
 Develop the aftermarket academy
 Upgrading and expanding
bearing technical training,
bearing diagnosis,
aftermarket database
Aftermarket

academy3/17/201517

GrowthMajor Theme(2) Expand Aftermarket Business
Important measures-2

3. Strengthen approaches to target markets
North American market• Growth in MRO target industries• Expand part kits for trucks andpassenger vehicles• Strengthen relationship with major distributors

Chinese market• Concentrate on MRO target industry• Expand distributor network(100 million
yen)

500

Americas

300

252

200

Automotive

100
0Industrial
Machinery

2014

Forecast
見通し(100 million
yen)

200

100

Central and South American market• Strengthen organizational system and engineering services 0

2015

2016

China

2017

+85%

150

81
Industrial
Machinery

2014

Forecast
見通し

3/17/2015

415

400

Russia market• Full-scale operation of new sales
company, net sales 2-fold

+65%

2015

2016

2017

18

Profitability
Major Theme(3) Structural Reform of the Driveshaft Business"NTN driveshafts achieving World's No.1 customer satisfaction level"
Current Status and Issues

Target•Expand sales to aim for greater share•

Expand profits of the driveshaft business•

Increase number of car makers supplied••

Global system for production in customer
regions

World's No. 1 customer satisfaction levelfor quality, cost, delivery and technicalaspects

2000

Driveshaft net sales

Number of customers
20

1500
1000
500

15

100 million
yen

10

6,000

0

2005

2010

2014

0

Sales target

5,300 +15%

4,000
2005

Others

2014

Operating margins have dropped due tofalling sales prices and soaring costs

2,000

0

3/17/2015

Driveshaft business
operating margin

4,590

5

100 2000
million yen•

Automotive business
operating margin

+15%

Drive
shaft
2014

2015

2016

2017

19

Profitability
Major Theme(3) Structural Reform of the Driveshaft Business
Important measures-1

1. Expand profits of the drive shaft business
Improve operating margin by 3 points over 3 years
Review design, materials and methods• Increase use of locally-procured materials• Seek materials with near net shape• Change design of shafts and othercomponents

Strengthen sales price control• Limit price reductions• Implement measures to protect
sales price of low-profit items

Exchange rates

Decrease invariable costs

Scale
merits

FY2014(forecast)

3/17/2015

Sales pricelevelsExpand sales and improve mix• Net sales: approximately
29 billion yen increase• Expand high value-added products
for premium-grade vehicles

Seek production efficiency• Coordinate production loads
between plants• Reduce man-hours by streamlining
processes• Reduce equipment costs with newtechnologies

Increase
fixed costs+ approximately
7 billion yen

FY2017

20

Profitability
Major Theme(3) Structural Reform of the Drive shaft Business
Important measures-2

2. Strengthen global quality control and supply system
Globally consistent standard
quality assurance with
“Made by NTN”

Faster reliable operation of newplants (China, Mexico)
Increase production capacity
in the U.S.

Development system in 5 regions
around the world designed
to meet local needs

NTN-AT (Germany)

Xiangyang NTN (China)

Beijing NTN (China)

Okayama Works (Japan)

Iwata Works (Japan)

NTN Sibio(Romania)

NTE (France)

NDI (North America)

Guangzhou NTN (China)

Seohan-NTN(Americas)

Taiway (Taiwan)
NTN Fukuroi Corp (Japan)

NNMI (India)

NMT (Thailand)

NTN de Mexico

NDB (Brazil)

Unidrive (Australia)

3. Development and series lineup of next-generation driveshaft modules
hub bearing + drive shaft
Utilize EBW (Electron Beam Welding)and PCS (Press Connect Spline)

3/17/2015

21

Profitability
Major Theme(4) “Monozukuri” with Next-generation Technology"Innovation with "Monozukuri" methods toward next 100 years"
Current Status and Issues•

Change in working environment

Target•− Cost-competitive capabilities,
reduce equipment unit costs− Shorten lead-time, eliminate stockin process− Adopt energy and resource
efficient processes− Decreasing birthrate and aging
population in Japan− Soaring personnel expenses inemerging countries•

Globally consistent standard quality− Increase in overseas production
plants••

3/17/2015

Global standardization of"Monozukuri"− Globally consistent standard quality
assurance− Speedy and flexible production
system"Monozukuri" comes from
“Hitozukuri"− "Hitozukuri" chiefly in Japan

Introduce innovative manufacturing
technologies•

Strengthen global “Hitozukuri”− Expand business at the ideal time
− Respond to sudden increases indemand22

Profitability
Major Theme(4) “Monozukuri” with Next-generation Technology
Important measures-1

1. Develop and introduce innovative manufacturing technologies• Development and roll out of “Grow Up line”• New driveshaft machining method
Innovative• Including streamlining with
manufacturing
line
grinding-free machining and combinedmachining, using precision joint
technology, and using near net shapes• New mass-production technologies(Image)for axles (hub bearings)• Establish flexible lines with equipment
modulization and by utilizing robots• Construct in-line production and consistent production lines fortapered bearings and needle roller bearings
3/17/201523

Profitability
Major Theme(4) “Monozukuri” with Next-generation Technology
Important measures-2

2. Promote global standardization of “Monozukuri"
 Development of “Monozukuri" standards
 Roll out to the "mother plant" andprovide training

Mother plant
Deploy laterally Deploy laterally to overseas plants
 Globally consistent standard quality
assurance with “Made by NTN”

Globalstandardization

Deploy new production
methods

Overseas
plant

Overseas
plant

Overseas
plant

Overseasplant

3. Continual “Hitozukuri” to increase worksite capabilities
 Expand system for training of technicians from outside Japan
at the "mother plant“ "Global QC Circle Convention" and"NTN Technical Skills Competition"
 Open "Monozukuri school" Improve technicians for special processes
3/17/201524

Foundation
Major Theme(5) Strengthen the Management Foundation"Establish management foundation as a truly global company"
Current Status and Issues•

Progress of globalization–

Ratio of overseas sales: approximately
70%–

Ratio of overseas production:
approximately 50%–

Development system in 4 regions aroundthe world–

Ratio of overseas employees:
approximately 65%•

Instill the "corporate philosophy"•

Strengthen compliance globally•

Train global personnel•

Encourage the roles of women(in Japan)

3/17/2015

Target• Ensure all NTN Group employees areaware of the "Corporate philosophy"
as a globally common code of
conduct• Ensure compliance and strengthen
efforts for governance and diversity
as a global company• Contribute to local communities andenvironment conservation to become
a company admired throughout theregion• Establish “on local site with local
materials by local personnel” system
25

Foundation
Major Theme(5) Strengthen the Management Foundation

Important measures-1
1. Strengthen control of NTN Group companies
・ Instill the corporate philosophy globallyJapan

CSR Headquarters
Europe, South America

Office of General Manager-Americas Region
Internal Control Section

Subsidiaries

China

India
Office of General
Manager -India & West
Asia Region
Internal Control Section
Subsidiaries

・ Ensure that information is disclosed appropriately
and at the ideal time, and with transparency

Office of General Manager-China Region
Internal Control Section

ASEAN
Office of General Manager-ASEAN & Oceania
RegionInternal Control Section

Subsidiaries

Subsidiaries

Corporatephilosophy

NTN's
corporatephilosophy system

Basic policy

Employee code of
conduct

3/17/2015

North America

Exchange information
Personnel interaction

Subsidiaries

・ Strengthen the internal control system overseas

・ Create disaster mitigation plan for the global
supply chain

Relevant
departments

Office of General
Manager -Europe &Africa Region
Internal Control Section

・ Global training and follow-ups
by the CSR Headquarters

2. Strengthen risk management

Subsidiaries

Business code of
conduct

26

Foundation
Major Theme(5) Strengthen the Management Foundation

Important measures-2
3. Conserve the global environment andpromote social contribution activities• Promote “using natural energy” at plants and businessWind power
generation• Reduce environmental impact
throughout the supply chain• Strengthen links with local communities forbusiness plants

4. Train global personnel

Regional planting activities• Mutual interaction between personnel fromJapan  overseas, overseas  overseas

Sunlight power generation
Number of female managers
in Japan

Double• Improve training of young personnel andmanagement personnel• Double the number of female managers (in Japan)• Promote employment of diverse personnel

2014

forecast
見通し

3/17/2015

2015

2016

2017

27

Foundation
Major Theme(6) Strengthen the Financial Foundation"Strengthen profit control and improve asset efficiency"
Current Issues and Target Values
Equity to capitalratio:
30% or more

Drop in equity to capitalratio
Net D/E ratio increases

3/17/2015

ROE:
14% or more

Net income to net sales
for current term, andturnover ratio areworsening

Net D/E ratio :1.0 or less28

Foundation
Major Theme(6) Strengthen the Financial Foundation
Important measures-1

1. Financial actions to improve asset efficiency(1) Reduce interest-bearing debt (-60 billion yen/3 years)
Utilize free cash flow, and cash and deposits
Expand scope of funding within regions
・ Improve inventory turnover ratio (4.0  4.5)
Clarification of proper stock standards andmulti-directional follow-up system
・ Sell assets
Careful examination of held stock and other assets(2) Reduce obligations for retirement benefits
Build up pension assets

3/17/201529

Foundation
Major Theme(6) Strengthen the Financial Foundation
Important measures-2

2. Financial actions to improve net income to net sales(1) Actions to improve operating margin for each business (6.2%  8.8%)• Aftermarket business...expand highly profitable businesses• Industrial machinery business....improve plant operating ratio byexpanding sales• Automotive business...focus on improving profits of driveshafts(2) Shift to investment decisions with greater focus on CF than previously• Better balanced investment decisions by field• Review decision standards, risk information, follow-up methods andother aspects

3. Returns for shareholders• Ongoing long-term and reliable returns of profits to shareholders• Based on 30% dividend payout ratio
3/17/201530

Plans by Business Sector (Aftermarket Business)
Expand global net sales 35% (10% pa) over 3 years
100 million
yenJapan: Secure a solid 50% share in Japan
with bulk equipment repair contracts (MRO)
and pro-active efforts to secure new customers
+31%

+31%

Americas: Cooperate with major distributors to expand
shareHighlight advantages through marketing andengineering
Greater lineup of alternative products for automobiles
Expand auto parts for trucks+65%

Europe: Expand MRO for steel/mining/paper, etc+15%

Expand share in emerging markets
Extend spread of suspension auto parts
Asia: Conduct training and maintenancedemonstrations
Strengthen sales promotions and advertising
Increase distributor network and expand sales tomajor distributors

Paper manufacturing equipment

3/17/2015

Spherical roller
bearings

Steelworks facilities

Auto parts for trucks

31

Plans by Business Sector(Industrial Machinery Business)
Expand global net sales 17%, improve operating margin to 7.5% over 3 years
100 million
yenJapan: Increase demand for gearboxes and reducers for
robotsIncrease domestic production of machine tools
Increase demand for exports of agricultural machinery+10%

Americas: Recover demand for construction

machinery

Increase new orders for agricultural machinery+35%

Include orders of CVJs for industrial machinery+26%
Europe: Increase new orders for aircraft+3%

Recover demand for agricultural machinery
Increase new orders for rolling stock

Asia: Increase new orders for Chinese rolling stock
Include orders for hydraulic pumps for construction
machinery
Increase demand for wind turbines
Bearings forwind turbines

3/17/2015

Bearings for jet engines

32Plans by Business Sector (Automotive Business)
Expand global net sales 15%, improve operating margin to 6% over 3 years
100 million
yenJapan: Reduce domestic market (-12%)
Reduce sales by developing local procurement forcustomers+59%
Americas: Increase production quantity (+7%)+3%

Expand market to increase sales
Expand sales by launching the Mexico plant+21%
Europe: Recovery mainly in western Europe-9%

Increase sales of 3rd generation hub bearings

Asia: China leads the way as the largest market
Stable supply system in Nanjing and Xiangyang

Press connect hub joint

3/17/2015

Ball screw
linear module

Hub bearings with sensor

Mechanicalclutch unit

Recovery/growth in ASEAN and Indian markets

33

Plan by Region (Net Sales and Operating Margin)
Japan: Expand aftermarket business
100 million yen

Americas: Continued growth with firm market environment
100 million yen

Europe: Increase for industrial machinery

Asia: Automotive and aftermarket business lead the way

100 million yen

100 million yen

3/17/201534

Main Management Indices of ""(100 million yen)

Net sales

Forecast

NTN100FY2014 (1)FY2017 (2)Year on year(2)-(1)

6,730

8,000

+1,270Operating income

420

700

+280

Operating margin

6.2%

8.8%

+2.6 points

Net Income

200

420

+220

Inventories

1,680

1,800 or less+120 or less

4.0

4.5

+0.5

26.0%

30.0% or more

+4 points or more

Net D/E ratio

1.24

1.0 or less0.24 or more
improvement

ROE

9.7%

14% or more

+4.3 points or more

Inventory turnover ratio(times)Equity to capital ratio

Exchange rate

3/17/2015$:¥101.5 €:¥134.5$:¥110€:¥130-35

NTNTransformation for
Next
100

3/17/201536