February 2, 2023

NTN Corporation Q&A Summary of FY2022 IR meeting(The third quarter of fiscal year ending March 31, 2023)
Q1. The full-year operating income forecast is 22.0 billion yen for the aftermarket businessand 8.0 billion yen for the industrial machinery business, both of which are record highs
since 2011. Are those businesses promising in the next fiscal year?
A1. The aftermarket business is experiencing strong demand, and the industrial machinery
business has improved its operating margin by reducing costs and raising the prices of
unprofitable products ahead of other businesses. We believe this will continue in the next fiscal
year.

Q2. Other companies have declined inventories and orders for industrial machinery and it
seems that the business slows down. How about NTN?
A2. Due to the desynchronization of parts caused by the semiconductor shortage, some industries
are experiencing delays in production, and our work-in-process inventory is increasing
accordingly. It is difficult to foresee how the semiconductor shortage will be resolved in thefuture, but if it is resolved, the production will be on a steady rise, and we consider to haveinventory for that time. In addition, there are various forecasts for the global economy, andwe will carefully assess them, including their impact on our company.

Q3. You have revised downward the full-year operating income forecast for the automotive
business. What is the background behind the revision?
A3. We have revised our full-year operating income for the automotive business downward due tothe delay in recovery production caused by the semiconductor shortage and the delay in pricepass-on measureas and reducing personnel costs in some regions .

Q4. Vehicle production is not expected to grow significantly next fiscal year. What will be
the key points for price pass-on measures and securing operating margins?
A4. We expect operating income to remain on the positive side in the future. Further, we intend to
reduce the number of unprofitable products and create a structure in which profits increase as
sales increase. In addition, we will work with customers to develop driveshafts and hub
bearings for EVs, and we will strive so that customers recognize the added value of ourtechnology in products including for e-Axle. We can turn this into a business with profit andvolume.

1Q5. You have lowered the target for price pass-on measures in this fiscal year, but what is
the fisibility of achieving it? Also, what is your thinking on costs that you could notpass on to customers?
A5. Currently, out of the 34.7 billion yen that we expect to be able to pass on to customers in thecurrent fiscal year, there are a few costs that have not yet been determined. We are continuing
negotiations on these costs. For those that we are unable to achieve in this fiscal year, weintend to pass the full amount on to our customers in the next fiscal year.

Q6. What are the fixed costs and how likely is it that you will achieve the 3.2 billion yen
increase from fixed cost reductions (personnel costs and expenses) in the 4Q?
A6. For the full year, personnel costs and expenses increased by 19.5 billion yen year on year.
Personnel costs in North America, which are subject to price pass-on measures, were in linewith expectations. Fixed costs include higher shipping rates, amortization of core system,
productivity deterioration in North America, and logistics disruptions in Europe. Going forward,
we expect to improve productivity in the North America and resolve logistics disruptions inEurope to reduce fixed costs in each region and achieve a positive 3.2 billion yen in the 4Q.

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