December 14, 2022
NTN CORPORATION

Attendees
Eiichi Ukai
Representative Executive Officer, President, Executive Officer,CEOYuriya Komatsu
Outside Director
Masaki Egami
Executive Officer,CTO (Chief Technology Officer)
Research Division
New Product & Business Strategic Planning HQ.
Yasuhiro Kawabata
Executive Officer
Human Resources Strategy Dept. and Personnel Dept.
Masaaki Yamamoto
Executive Officer
ESG Promotion Dept.
Masayuki Yamazaki
Project Leader, Carbon Neutrality Promotion Project2022/12/14

Copyright 2022 NTN Corporation2

Table of Contents
1.Overview of ESG Management
2.Environment (E)
3.Social (S)4.Governance (G)2022/12/14

Copyright 2022 NTN Corporation

3

NTN Group Vision
NTN Group Vision
Through the implementation of our corporate philosophy, “We shall contribute to internationalsociety through creating new technologies and developing new products," we aim to contribute tosolving social issues surrounding the world and realize a “NAMERAKA Society“, a society where people
can easily lead a secure and fulfilling life in harmony with nature.
Founder'sSprits

Corporate
Philosophy

ManagementPolicy

Founder's Sprits
The Frontier Spirit
The Coexistence and Co-prosperity Sprits

Realization of a“NAMERAKASociety”
Our Vision※A society where people can easily lead asecure and fulfilling life in harmony with nature.

Toward the Realization of a “NAMERAKA Society”
Identify materiality responding to SDGs
Promote ESG Management

Corporate Philosophy:
We shall contribute to international society(Frontier Spirit)
through creating new technologies anddeveloping new products(Coexistence and Co-prosperity Sprits)
2021/12/21

Copyright 2021 NTN Corporation4

Roadmap for Realizing a "NAMERAKA Society"
Prioritized issues and foundations, organized into two frameworks
Set KPI and targets for materiality items< Contribution to solving social issues toward the future we aim for >ESG issues
Realize carbon neutrality

SocialContribute to prosperous
lives

Respond to climate change

Scope1,2 ⇒ Carbon neutrality by FY2035
Scope3 ⇒ Carbon neutrality by FY2050

Realize a sustainable society
using natural energy

Development related to products and services that
contribute to the stable operation of wind turbines ⇒Completion of development themes

Reduce energy loss

Development related to low friction, miniaturization andweight reduction of products for automobiles and industrial
machinery ⇒Completion of development themes

Provide safety and comfort

Raise awareness of independent power supply units andimplement proposal activities for disaster mitigation anddisaster< Foundation to support ESG management >ESG issues

Materiality
2022/12/14

Environment/
Environmental
protection

Resource recyclingand pollution
prevention

KPIs and Targets (excerpt)

Social/Sustainable supply chain

Please refer to NTN Report 2022(Link) for all KPIs andtargets for the year ending March 2023.
Social/Prosperous human development

GovernanceImprove the reliability of products andservices(quality assurance and stable supply)

Promote safety andhealth

Human resourcedevelopmentThorough compliance

Procurement activities
with an emphasis onenvironment and society

Respect for humanrights

Promotionof diversity

Strengthen governanceRealization of a “NAMERAKASociety”

Environment

Contribute to carbon-freesociety

Materiality

Copyright 2022 NTN Corporation

5

Contents
1.Overview of ESG Management
2.Environment (E)
3.Social (S)4.Governance (G)2022/12/14

Copyright 2022 NTN Corporation

6

Contributing to Environment
Basics as a manufacturer

Produce

BuySell

Carbon neutrality

Carbon-free society
・Automobiles

Reduce CO2 emissions in procurement/production
・Reduce CO2 emissions generated by heat treatment facilities
・Reduce CO2 emissions associated with electricity usage

Scope1
Scope2・Reduce CO2 emissions generated by suppliers
・Introduce and utilize internal carbon pricing

Scope3
Scope1,2,3

2022/12/14(EV, electrification)

・Various industries
Wind turbines
Manufacturing facilities
etc.

Copyright 2022 NTN Corporation

7

Carbon Neutrality

Carbonneutrality

Establishment of system capable of performing
In 2021
May: Express our support of TCFD recommendations

December: Creation of the roadmap
In 2022
May: Decision on target year for achieving carbon neutrality
Respond to climatechangeReduction of CO2 emissions

Carbon neutrality

Carbon neutrality(Scope 1,2)
by FY2035(Scope 3)
by FY2050

July: Carbon Neutrality Promotion Project launched
September: Working Team for Carbon Neutral Heat Treatment Processlaunched
November： Start of briefings for domestic and overseas NTN Group
employees to achieve the targets
2022/12/14

Copyright 2022 NTN Corporation8

Project Activities -1

Carbonneutrality

Planning and promotion of measures to reduce CO2
Purpose◆ Promote action plan for carbon neutrality
1) Visualize electric power at production plants
and improve energy conservation
2) Promote introduction of natural energy generationand purchase of renewable electricity
3) Introduce internal carbon pricing

SystemA total of approximately
30 members from both
domestic and overseas
General Manager
President,
Chief Executive Officer
Deputy General Manager
Responsible
Executive Officer
Project Leader(exclusive duty)◆ Establish a specialized organization

Activity period
From July 1, 2022 to March 31, 2023
2022/12/14

Team 1Team 2

Team 3Copyright 2022 NTN Corporation

9Project Activities -2Carbonneutrality

Promote globally simultaneously
Action plan
ItemJul. 2022

Aug. 2022

Sep. 2022

From Oct. 2022 toMar. 2023

Visualize power consumption
Trial

Establish measuring methods
Establish a system

Actual measurement

Decide model line

Standardize

Purchase renewable energy
Overseas business sites

Establish a specializedorganization

2022/12/14

Confirm the effortsof each company

Comprehend status ofelectric power companies

Consider conversion
methods

Questionnaire survey

Domestic business sites

Internal carbon pricing

Comprehend situation ofelectric power overseas

Classify scopeof application

Identify operations

Make purchasing plan

Prepare for the start

Establish criteria for capital investment
and procurement

Consolidate operations

from April 2023

Allocate Operations

System planning

Copyright 2022 NTN Corporation10Contributing to Environment
Basics as a manufacturer

Produce

BuySell

Carbon neutrality

Carbon-free society
・Automobiles

Reduce CO2 emissions in procurement/production
・Reduce CO2 emissions generated by heat treatment facilities
・Reduce CO2 emissions associated with electricity usage

Scope1
Scope2・Reduce CO2 emissions generated by suppliers
・Introduce and utilize internal carbon pricing

Scope3
Scope1,2,3

2022/12/14(EV, electrification)

・Various industries
Wind turbines
Manufacturing facilities
etc.

Copyright 2022 NTN Corporation

11Carbonfreesociety

Carbon-free Society
Automotive

Contribute to EVs and electrification

Impact on our business: Increase average sales price per car and improved profitability
through higher functionality
Demand for engines and T/M disappears
High-performance motor bearings added
Achieved industry-leading highspeed rotation (dmn: 2.2 million)

Higher functionality (lower torque loss, light weight, highrigidity and low vibration), upsizing and shifting to AWD(increase in the number of units used)
Global marketshare: No.2

Deep groove ball bearings for EV・HEVContributing to the enhancement of e-Axle
functions

Received the 2022 Grand Prize

Mass production start of high efficiency CFJ
Contributing to response to fuel efficiency regulations

Global market
share: No.1

Sales of products for EVs
Driveshaft
Hub bearings

No change in the number of units used (4 units)
High functionality (low friction, lighter weight, high speed)

eHUB

sHUB

Ra-sHUB
2022

Expanded collaboration with automakers for commercialization
2022/12/14

2023

2024

2025

2026

2027

2028

Increase with fiscal year ended March 31, 2022 as 100
Copyright 2022 NTN Corporation12Carbonfreesociety

Carbon-free Society
Variousindustries

Contribute to more efficient energy use
Energy loss occurs when the machine stops⇒ Control facility downtime by detecting abnormal conditions
through condition monitoring according to application

Monitoring anddiagnostics Service
Electric power
generationcompany
Maintenancecompany

Manufacturing“Sensor Integrated Bearing Unit”
facilities
for Machine Tool Spindles

Wind power
App salesand support

TechnicalSupport
Facility
administrator
Talking bearings

Status monitoring andabnormal diagnosis
Bearing Diagnostic
Edge AppPortable Vibroscope

CMS(Condition
Monitoring System)

Condition
monitoring system
2022/12/14

Vibration measurement
and equipment diagnosis
Copyright 2022 NTN Corporation13

Carbonfreesociety

Carbon-free Society
Variousindustries

For wind turbine<Market Environment>
・Expansion of wind turbines in line with the switch to renewable energy
・Increasing the size to secure the amount of power generated per unit
・Introduction of large-scale offshore wind turbines in Japan⇒ Contribute to stable operation and widespread use of wind turbineswith hardware and software

Hardware

Improved service life underload distribution such as wind

Improved wear resistanceby applying special coating
New Energy Foundation
Chairman Award ofNew Energy Award
2021

Cross section
Asymmetrical Spherical
Roller Bearings

Software

DLC Coating Spherical
Roller Bearing

Supporting national
measures for next-generation
wind turbine technology
development

Provide service to monitor the condition of the area around bearings
Collaboration with wind turbine
Data collection
Condition monitoring
and analysis
and diagnostic
maintenance specialist,
Equipped in about
Hokutaku Co., Ltd.
300 units
The number ofunits monitoring:domestic No.1
Status Monitoring System (CMS) Wind Doctor ®

2022/12/14

Participation in NEDO Green
Innovation Projects

Offering aftermarket bearingsand maintenance services
systematicallyCopyright 2022 NTN Corporation14

Carbon-free Society

Carbonfree
society

Increase efficiency of manufacuturing equipment
Variousindustries <Needs for decarbonization>

・Reduction of electricity consumption by improving the operating rate ofequipments and minimizing downtime
・Reduction of power consumption through energy-saving equipment⇒ Provide solutions that do not stop machine operation
Provide high-performance that help improve the performance of rotational parts such as motors
Contributing to preventive maintenance bymonitoring changes in bearings in real time

■Easy diagnose each time

■Simple and quick diagnosis through constant monitoring

NTN Portable Vibroscope■Bearing detects/transmits abnormality

Compatible with Edgecross TM industrial IoT platforms"Bearing Diagnostics Edge Application"
2022/12/14

Talking bearing
Copyright 2022 NTN Corporation

15

Contribution to decarbonisation

Carbonfreesociety

Contributing to environment through main products for automotive business・The fiscal year ended March 31, 2022: Net sales was 642 billion yen. Sales for driveshafts and hub bearings,
which are our main products, account for about 50%
・S to B-eco grade, which contribute significantly to environment, accounts for 55.9% of total sales(+4.3 percentage points YoY)
<Trends in net sales><Trends in composition of environment-contributing
product by grade>・Environment-contributing products help reduce CO2 by about 1.4 million tons per year (compared to 1998)<Contributing to reduced CO2>

Reduction effect: 2.4 timesof NTN Group's annual CO2 emissions(Scope 1, 2) from its business activities
in fiscal year ended March 31, 2022

2022/12/14

Copyright 2022 NTN Corporation

16Carbonfreesociety

Contribution to decarbonisation

Contributing to environment through main products for industrial machinery
Supports stable wind turbines operation and reduces environmental impact by improving
bearing performance

Robot

Wind turbines

Condition Monitoring System (CMS) Wind DoctorTM(units)Cumulative installed number of CMS

350

Machine tools

Low Dust Generation Bearing forServo Motors
Particle
Rotational torquegeneration
100

About 50%
reduction 1005050

About 90%
reduction

High-speed Angular Contact Ball Bearing
with Outer Ring Refueling Hole
Lubricating oil
Air-oil quantity
quantity
2/3 reduction

100

About 50%
reduction

100

2505050150

0Conventional
product502016

2017201820192020

2021

Products
Developed
underproductdevelopment

00Conventional
product

Products
Developed
underproductdevelopment

2022

Comparison with conventional productbefore 2020 as 100

Conventional
product

Products
Developed
underproductdevelopment

0Conventional
product

Products
Developed
underproductdevelopment

Comparison with standard air oil spacer
type before 2011 as 100

As for indexing, we participate in GX League's GX Management Promotion Working Group and are currently studying it
2022/12/14

Copyright 2022 NTN Corporation

17

Contents
1.Overview of ESG Management
2.Environment (E)
3.Social (S)4.Governance (G)2022/12/14

Copyright 2022 NTN Corporation

18

National Resilience and Disaster Mitigation/Prevention

Prosperous

lives

Independent power supply that does not emit CO2, power supply during power outages,
disaster prevention warehouses, and lighting in evacuation centers

Strengthen regional
resilience in cooperation
with local governments

Adopted as an independent power
supply for the Flood Prevention Center(Yoshida Town, Shizuoka Prefecture)

Functioned as an emergency power supply in the event of alarge-scale power outage due to the earthquake in 2018
(Shiraoi-cho, Shiraoi-gun, Hokkaido)

Adopted as an emergency power supply andtemperature-controlled storage for disaster prevention
2022/12/14 base facilities (Kuwana city, Mie Prefecture)

Adopted as eco toilet for Tado Sanjyo Park (Kuwana city,Mie Prefecture)
Copyright 2022 NTN Corporation
19

Investment in Human Capital (Human resource development)

Prosperous
humandevelopment

Emphasize public interest capitalism and human capital "company is its people"
Basicapproach

Objective
Basic polisy
for Humanresourcedevelopment• “Enriching human resources” aimed at realizing a “NAMERAKASociety”•Development of human resources
capable of achieving businessobjectives and quickly responding tochanges in the business environment

・To foster a culture oflearning and cultivation in
the workplace• Human resources who are competent in the international community• Human resources who are independent as individuals• Human resources with creativity

Activities
Domestic and Global
QC Circle Convention

Human resource
development
program

Technical Skills
Competition(Prepared every fiscalyear)

Training by by Training
specialized
levelfieldetc.
More than 80 on-line and face-to-face training
sessions per year based on human resource
development program

2022/12/14

New NTN Next Leader Program (NNLP)
for young managers to train
management candidates

In the area of production reform,
develop human resources who
promote reform through levelbased education and training

Copyright 2022 NTN Corporation20Investment in Human Capital (Environment development)

Prosperous
humandevelopment

Maximize the capabilities of employees by improving “good working environment"

Diversity and inclusion<Ratio of female managers>
Global14.4%
Japan (NTN Corp.) 4.2%

Develop an environmentthat enables women totake on challenges formanager in Japan<Percentage ofemployees withdisabilities>

Increased from theprevious fiscal year
due to aggressive
recruitment andretention measures<Total number of childcare leave and ratio of male childcare leave>
100

Total number of certification

80
6020%

68
11.2%

56
46

44

47

10%

40
20

89

5.9%
3.5%
1.0%

1.1%

0.9%

00%
2017

2022/12/14

2018

2019

2020

2021

2022

The ratio of malechildcare leave
improved by 10 points
in three years due tothe holding of papa
seminars, etc.

Approval from the Ministry ofHealth, Labour and Welfare
Copyright 2022 NTN Corporation

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Investment in Human Capital (Environment development)

Prosperous
humandevelopment

Maximize the capabilities of employees by improving “good working environment"

Health management
Three Pillars of Initiatives
Workplace healthpromotion

Ultimate targets
Reduce absenteeism

Mental healthpromotion

Reduce presenteeism

Physical healthpromotion

Improve workengagement<Average annual leave usage rate>

VisionLively workplace environments which
promote measures aimed at improving
health and preventing disease so thatevery employee can work passionately,
living up to their full potential※For more information, please refer toNTN Health Report (Link)on WEB website.

<External Evaluation>
100 (%)

96.4

94.7
95

92.6

9086.78580
2019202020212022*The rate in FY2020 temporary declined due to theimpact of business suspension in the pandemic

2022/12/14

Recognized as a best practicecompany by the Osaka Labor
Bureau in 2018

Certifications from the Ministry of Economy,
Trade and Industry and the Sports Agency

Copyright 2022 NTN Corporation

22

Enhancing Employees Engagement

Prosperous
humandevelopment

Award system to encourage ESG activities
Dialogs with employees
NTN PROUD AWARD (from July 2022)

Employee engagement survey

Renewal of the globalcompany award system
to recognize outstanding
initiatives in ESG●Oct. 2021: survey

Dec. 2022 Application deadline
Apr. 2023 Global competition

A scene from a past competition<Target> Head Office and sales divisions<Objective> Understanding of employees‘s thoughts
and expectations for the company●Nov. 2021: Introduced 1on1 meeting<Target> Pairs between supervisors and subordinates<Purpose> Support for growth of members

Dialogs with employees
President actively
communicates withdomestic andoverseas business
sites
Visit domestic and overseas offices andBecoming a company that iscommunicate with employees at local meetings
attractive to employees

Opinion exchange meetingwith young research engineers

2022/12/14

Copyright 2022 NTN Corporation

23

Contents
1.Overview of ESG Management
2.Environment (E)
3.Social (S)4.Governance (G)2022/12/14

Copyright 2022 NTN Corporation

24

Enhancement of Corporate Governance

Governance

System andoperation to promote ESG management by strengthening fairness,transparency, and objectivity
Board of Directors
Executive Officers
Appointment / removal

Women/Outside Director
appointed as chairperson

Delegate / supervise

ReportJune 2021
Flatten Executive Officer other than president
April 2022
Abolished the compensation system byposition and shifted to a system based on
the responsibilities
Introduced ESG items as an evaluation
indicator for performance-linked
compensation (annual incentives)
2022/12/14

Nominating Committee
Determine the content of
the proposal regarding
appointment and removal ofDirectors to be submitted to
Board of Directors
Candidates for ExecutiveOfficer, Representative
Executive Officer, andPresident, Executive Officer
can be recommended(February 2022)

CompensationCommittee

Audit Committee

Determine
Executive Officer
compensation
throughevaluationindicators
including ESG(April 2022)

Attend theSustainability
Committee todiscuss ESG
issues(September 2020)

Copyright 2022 NTN Corporation25

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

This presentation and comments made in this conference or during the following Q&A session include forward-looking statements about future
performance and future business strategies, all of which are based on decisions of the management of the Company currently available.

•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, and contingent liabilities.

2022/12/14

Copyright 2022 NTN Corporation26