December 18, 2023
NTN CORPORATION

Attendees
Eiichi Ukai
Representative Executive Officer, President, CEO (Chief Executive Officer)
Yuriya 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.
Shumpei Kinoshita
Executive Officer
Corporate Strategy Dept., ESG Promotion Dept. andCarbon Neutrality Strategy Promotion Dept.
Masayuki Yamazaki
Manager, Carbon Neutrality Strategy Promotion Dept.
2023/12/18

Copyright 2023 NTN Corporation

2

Table of Contents
1.Overview of ESG Management
2.Environment (E)
3.Social (S)4.Governance (G)2023/12/18

Copyright 2023 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's
SpritsCorporate
Philosophy

Management
PolicyRealization of a
“NAMERAKA
Society”
Our Vision※A society where people can easily lead asecure and fulfilling life in harmony with nature.

From sustainability perspective-Contribute to the future of the earth・Longer product operating life
・Technology not to stop operation

Toward the Realization of a “NAMERAKA Society”

Materiality||
Issues requiring priority

Sustain2023/12/18

Maintain

response toward theRealization of a “NAMERAKA Society”
Copyright 2023 NTN Corporation

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Roadmap for Realizing a "NAMERAKA Society"
Aim to enhance NTN Group's corporate value and sustainable growth, and create environmental and social value< Contribution to solving social issues toward the future we aim for >ESG issues
Materiality
FY2022 Results (excerpt)

Contribute to carbon-freesocietySocialContribute to prosperous
lives

Respond to climate change

Scope1,2⇒ -22.6% compared to FY2018
Scope3 ⇒Develop and promote action plans

Realize a sustainable society
using natural energy

Launch of one-stop service that provides everythingfrom bearing supply to abnormality detection andmaintenance for wind turbines

Reduce energy loss

Develop High Speed Deep Groove Ball Bearings for
EVs and HEVs

Provide safety and comfort“N3 N-CUBE” was adopted by several municipalities< Foundation to support ESG management >ESG
issuesMateriality

2023/12/18

Environment/
Environmental
protection

Resource recycling
and pollution
prevention

Social/Sustainable supply chain

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

Realization of a
NAMERAKA Society

Environment

Realize carbon neutrality”

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

Promote safety andhealthHuman resource
development

Thorough compliance

Procurement activities
with an emphasis onenvironment and society

Respect for humanrightsPromotionof diversity

Strengthen governance

Copyright 2023 NTN Corporation

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Table of Contents
1.Overview of ESG Management
2.Environment (E)
3.Social (S)4.Governance (G)2023/12/18

Copyright 2023 NTN Corporation

6

Contribute to Solving Social Issues(1) Realize carbon neutrality
Respond toclimate change(2) Contribute to carbon-free society

Carbonneutrality

Carbon-freesociety(3) Environmental protection
Resource recycling andpollution prevention

2023/12/18

Environmental
protection

Copyright 2023 NTN Corporation7

(1)-1 Target for Carbon Neutrality

Carbonneutrality

Set target year for achievement for each scope( tons-CO2 )Scope 2620,000
463,000
310,000

Scope 12023/12/18

108,000

86,00054,000

Copyright 2023 NTN Corporation8

(1)-2 Carbon Neutrality Realization Image

Carbonneutrality

Steadily promote action plan for achieving carbon neutral targets＜Main measures＞
Reduction of CO2
emission factor by anelectricity supplier

Business activities byenergy sources derived
from fossil fuelImprovement inenergy saving

Reduction

Visualization of energy
Activities to improve energy saving

Energytransformation

Conversion

Energy transformation of theheat treatment process
Purchase of CO2-free electricity

Creation

PPA of solar power, etc.
(onsite and offsite)

Energy creation(PPA of solar power)
20182023/12/18

2035

Offset the remaining CO2
emissions from fossil fuelCopyright 2023 NTN Corporation9

(1)-3 Initiatives for Each Scope

Carbonneutrality

Accelerate activities by promoting our own initiatives and collaborating with external parties
2020

2025

2040

2030

Electrification and energy saving of heat treatment facilities

Carbon offset LNG

Scope 1

CN of city gas by Methanation
Burner of hydrogen or ammonia
CO2 capture and utilization (Methanation)
Visualization of energy saving
Discovery energy conservation case study

Scope 2Company-wide deployment

Purchase renewable energy
Develop CO2-free electricity technology
Introduce electricity generated by renewable energy such as PPA
Improve logistics efficiency in transportation

Scope 3

Request cooperation from suppliers

Cooperation with suppliers
Procure steel made by CO2-free electricity

2023/12/18*Shading indicates work in progress; color fonts
indicate efforts by external organizations

Copyright 2023 NTN Corporation10

(1)-4 Promote Activities Globally

Carbonneutrality

Global promotion system for achieving carbon neutral targets
Dec. 2021

Creation of the roadmap for realizing a “NAMERAKA Society”（Carbon neutral targes for Scope1,2: 2040）

Jun. 2022

Moving the target forward（Scope1,2: 2035）

Jul. 2022

Carbon Neutrality Promotion Project launched

Apr. 2023

Carbon Neutrality Strategy Promotion Dept. newly establishedJul. 2023

Carbon Neutrality Promotion Committee and subcommittee newly establishedOct. 2023

Sign Sustainability Linked Loan Agreement with The Norinchukin Bank

Carbon Neutrality
Promotion Committee

Japan SC

Europe/Africa SC

Americas SC

Energy saving promotion WG
Energy procurement WG
Internal carbon pricing management WG
2023/12/18

China CS

Chairperson: Executive Officer, President
Vice chairperson: Executive Officer incharge of CN

ASEAN,
Oceania &West Asia CS

India CS

Jan. 2024
Compile roadmaps for eachregion and create a global
roadmap
Copyright 2023 NTN Corporation 11

(1)-5 Initiative for Scope 1

Carbonneutrality

Energy saving and electrification measures for heat treatment equipment

Introduce electric furnace

Introduce 100％ electric furnace after 2017
Electric furnace ratio

60%
55%
50%
45%
2015

Energysaving2017

2020

Switch to insulation materials with low thermal
conductivity
Minimize heat loss from the outer wall of the heat
treatment furnace
Progress
60%
40%

Reducefuel usage
by 10%

Fuel switching /electrification

10,000

Energy saving
Atmospheric gas measures

8,000
6,000
4,000
2,000
0

2023

2023

Introduce high-efficiency
heat-insulating materials

Overview of heat treatment equipment (Japan)

12,000

CO2 reduction amount (t/year)

Electrification

2024

2025

2026

2027

2028

2029

2030

Atmospheric
Switch to N2 atmospheric gas
gas
Switch from hydrocarbon raw material gas to N2 gas
Reduce CO2
emission by
100%

Progress

100%

50%

Target: Normal hardening furnace
Proportion: 50% of the total
atmospheric gas

20%
0%

0%
2023 2024 2025 2026 2027 2028 2029 2030

2023/12/18

Scope 1

2023

2024

2025

2026

2027

2028

2029

2030

Copyright 2023 NTN Corporation12

(1)-6 Initiative for Scope 1, 2

Carbonneutrality

Case of Wakayama Works that completion ceremony
was held in October 2023

Scope 1

 Energy saving and electrification of heat treatment equipment
Reduced liquefied petroleumgas (LPG) consumption
by adopting an electric heat treatment furnace

Scope 2

Reduced power consumption
by using high-efficiency insulation material on
the outer wall of the heat treatment furnace
Reducedby 11%

Reducedby 57%

Conventional factory

Wakayama Works Introduce CO2-free electricity

Conventional factory

Wakayama Works

Wakayama Works Utilize natural energy power generation

105t
Reducedby 85%

Reduced517t
Monthly CO2 emissions

2023/12/18

N3 N-CUBENTN Green Power Station

Solar panel（plan）

Copyright 2023 NTN Corporation13

(1)-7 Initiative for Scope 2

Carbonneutrality

Introduce natural energy power generation and promote
CO2-free electricity purchase Accelerate introduction in Japan and overseas(million kWh)Scope 2

＜Examples of sites introducing solar panels＞

Trends in natural energy generation

15
Japan

Overseas

10

5

0
2018

(million kWh)

2019

2020

2021

2022

NTN Mie Corp.
(from Apr. 2023)

NTN BEARINGSINGAPORE (PTE)LTD.
(from May. 2023)

NTN MANUFACTURING
DE MEXICO,S.A.DE C.V.
(from Aug. 2023)

NTN BEARING-MALAYSIA
SDN.BHD.
(from Jun. 2023)

Trends in CO2-free electricity purchase

15
Japan

Overseas

10

5

0
2018

2023/12/18

2019

2020

2021

2022

Copyright 2023 NTN Corporation14

(1)-8 Initiative for Scope 3

Carbonneutrality

Collaboration with suppliers and others
Improve logistics efficiency

Scope 3

 Procure steel materials made by CO2-free electricity
・Promote information collection and investigation

 Require suppliers to commit to carbon neutrality

・Share background and targets of carbon neutrality
・Introduce examples of energy saving
・Plan to periodically survey CO2 emission data and status ofenergy saving efforts

 Improve efficiency during transportation<CO2 emissions in logistics (Japan)>・Shorten transportation distance by optimizing
distribution routes
・Increase the loading ratio by expanding the useof module outer boxes
・Reduce the number of containers by increasing
the loading ratio of export containers
・Reuse and recycle (repair) of wooden pallets

2023/12/18

Copyright 2023 NTN Corporation15

(2)-1 Energy Conservation through Products

Carbon-freesociety

Provide products that minimize energy loss
Low Torque2018 ‘CHO’
MONODZUKURI
Innovative Parts andComponents Awards,
Mobility Components
Award2020 ‘CHO’
MONODZUKURI
Innovative Parts andComponents
Awards,Mobility
Components Award

2022 ‘CHO’
MONODZUKURI Innovative
Parts andComponents
Awards,Grand Award“Ultra-low Friction Sealed Ball Bearing” “Low Friction Hub Bearing III” High Efficiency Fixed Type CVJ “CFJ”
Reduce rotation torque by 80%
Reduce rotational friction during Reduce torque loss rate by 50%
compared to conventional productdriving by 62%Compact&
lightweight●World‘s smallest and lightest rear CVJ product
Reduce weight by 30% compared to conventional product
Reduce outer ring outer diameter by 3~5%
●Expanding sales since the start of mass production
in 2018
Adopted for BEVs for European premium brands

Compact Lightweight Rear Driveshaft “R Series”⇒ Contributing to a sustainable society through energy conservation
by automotive axle and power/drive train products
2023/12/18

Copyright 2023 NTN Corporation16

(2)-2 Contributing to Expansion of Next-generation Mobility

Carbon-freesociety

Shift to value-added product creation
EV & Electrification●Respond to various technology trends of e-Axle
Compact &lightweight

High speed
2021 ‘CHO’
MONODZUKURI
Innovative Parts andComponents Award,
Nippon Brand Award

e-Axle, increasing speed of drive
motors due to demand for highoutput and downsizing

High Speed Deep Groove Ball
Bearing for EVs and HEVs

●Energy saving for EVs by module productswith multi-functions

CreepLess Bearing●HUB and CVJ are increasingly adopted for BEVs
NTN's sales volume and ratio for EVs

30%

CVJ数量

HUB (volume)

HUB数量
CVJ (volume)
CVJ(EV比率)20%

CVJ (EV ratio)

HUB(EV比率)
HUB (EV ratio)

10%

eHUB

sHUB

Ra-sHUB0%
FY2023

FY2024FY2025

FY2026FY2027

FY2028⇒ Lead to sustainable growth for NTN
2023/12/18

Copyright 2023 NTN Corporation17

(2)-3 Breaking away from Fossil Fuels

Carbon-freesociety

Promote the use of alternative energy sources that do not emit CO2

 Wind turbine
Provide products that support the rotation of power generation equipment
and services through condition monitoring
Total number of CMS units installed

400

Number of units

300

Number of service contracts

200
100

Condition monitoring
system Hydrogen

Widespreaduse of FCVs
Installation of hydrogenstations

High-pressure hydrogen compressors
for hydrogen stations

2023/12/18

2016

2018

2020

2022

Supporting technology development to “produce”, ”transport”, ”storage” and “use”【Example 1】
Development of product for application

Machinery parts0【Example 2】Starting sample prototyping and delivery ofHydrogen Embrittlement Resistant Bearings【Example 3】
Resin products have been adapted as
sealing components for hydrogen environment

Hydrogen Embrittlement ResistantBearings【Example 4】
Project for development of basic technology for low-cost and advanced hydrogenstations that NTN participates in adopted as NEDO public offering project(Collaboration with industry and academia)

Copyright 2023 NTN Corporation18

(2)-4 Improve Utilization of Manufacturing Equipment

Carbon-freesociety

Contribute to further long operating life by the technology that makes
products last longer and maintenance through condition monitoring
Maintain

Sustain Longer product operating life
Contribute to further long operating life byspecial heat treatment, low-torque lubricants"ETFA Bearing“ realizing more thanand other technologies
6 times longer operating life
(comparing to conventional product) Technology not to stop operation
Contribute to appropriate maintenance by CMS and services for each use
Started diagnostic reportbusiness（from Mar. 2023）

2023 ‘CHO’
MONODZUKURI
Innovative Parts andComponents Awards,
Machinery & Robot
Component Award

Bearing Diagnostic
Edge App“Wind Doctor TM”
for wind turbine

2023/12/18“NTN Portable Vibroscope”

Bearing Diagnostic Edge
Application“Talking Bearing™”

Copyright 2023 NTN Corporation19

(2)-5 Contributing to Realize Recycling Society

Carbon-freesociety

Reduce environmental impact through bearing refurbish
Maintain

Sustain Extension of bearing operating life
Reconditioning based on technical know-how before a failure occurs

Customer

Cost reduction

Shorter lead times for purchase Sustainable use of natural resources
Reduce environmental impact through efficient use of limited resources

Reduce CO2 emission and manufacturing energy

Environment
Reduce use of steel material
2023/12/18

Extra-large sized spherical bearing for
paper mill application
Copyright 2023 NTN Corporation20

(2)-6 Indexing the Contribution to Decarbonization

Carbon-freesociety

Promote development of products with higher grades of environmental
contribution●Targets

Driveshafts, hub bearings, green energy products●Trend in net sales●Trend in composition of environmentcontributing products by grade●Contribution to CO2 reduction
Contributes to annual
reduction of approximately
1.5 million tons
(comparing to 1998)

2023/12/18

Copyright 2023 NTN Corporation21

(3) Biodiversity Preservation

Environment
Protection

Environmental contribution to the community

Explained about preservation
activities at Mt. Tado as partof SDGs education of local
junior high school

Nagano Works presented with
“CO2 Absorption Certificate”

Clean activity by NTN BOWER located in USA

Conservation activities for the endangered Reverdin’s Blue

Conduct protection activities in Nagano Works based on
the partnership agreement signed with Nagano Prefecture2023/12/18

Copyright 2023 NTN Corporation

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Table of Contents
1.Overview of ESG Management
2.Environment (E)
3.Social (S)4.Governance (G)2023/12/18

Copyright 2023 NTN Corporation

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Sustainable
SupplyChain

Strengthen Sustainable Supply Chain
Build relationships of trust with business partners
 Promote green procurement (from Mar. 2007)

 Request active promotion of CSR activities (From Apr. 2016)
 Formulate a Procurement Policy corresponding to SDGs (Apr. 2021)

 Announcement of our Declaration of Partnership Building (Jun. 2022)

Strengthen information security
 Establish the Basic Policy of Information Security (Oct. 2022)
 Start a cross-department emergency system NTN-CSIRT* (Apr. 2023)※Computer Security Incident Response Team Revision of information security management regulations, etc.
(Apr. 2023)
2023/12/18

Copyright 2023 NTN Corporation24

Prosperous

Strengthen Resilience for Disasterlives

Independent power supply generated by 100% renewable energy
Adoption increase as storage facilities in preparation for natural disasters andinfrastructure equipment etc.
●Cumulative installed number ofgreen energy products

Waiting room ata bus stop

400

300

Disaster prevention
warehouse

N3 N-CUBE

Independent power
supply for flood
prevention center

200

100

Eco toilets equipped withcirculation type flush toilet
2023/12/18

Model for exhibition that
adds a vending machine tothe charging station model

0
2016

2017

2018

2019

2020

2021

2022

Copyright 2023 NTN Corporation25

Promote ESG Management across NTN Group

Prosperous
humandevelopment

New system from 2022 to encourage ESG activities by employees“NTN PROUD AWARD” – the first global convention was held

Teams from around the world madepresentations ad shared their efforts online

Q&A session by judges including President Ukai Recognize the links between ESG and own works, and work tosolve issues across the Group
2023/12/18

Copyright 2023 NTN Corporation

26

Dialog through Town Hall Meetings

Prosperous
humandevelopment

President and Executive Officers visit region/department in charge
to explain company policy and exchange opinions face to face with employees

Osaka HQ. region

Americas region

Europe region

Iwata region

China region

ASEAN region

 Lead the company policy to root globally, enhance employee engagement,
and improve management
2023/12/18

Copyright 2023 NTN Corporation

27

Measures/issues in promoting women’s advancement

Prosperous
humandevelopment

Develop the system and foster a corporate culture for utilization
2010

2000

2015

2025

2020

Childcare leave system from 1992（143 persons/FY2022）
Child nursing holiday since before 2000（103 days/FY2022）
Shortened working hours for childcare from 2010（49 persons/FY2022）[Issue] Promote childcare
leave for men[Measure] Papa seminars(from 2019)160

Employees taking childcare leave

140

Percentage of male

143

89

100
80

44

47

56

1.1% 0.9%

50%

30%

68
20%

11.2%

40
20

Mom-back system from 2006
(approx. 2 persons registered/year)

37.2% 40%120

60Child-raising support declaration from 2010（49 persons/FY2022）

3.5%

5.9%

10%

0

0%
2018

2023/12/18

2019

2020

2021

2022

2023

NTN job return system from2018 (approx. 6 persons
registered/year)

Babysitter childcare support system from 2008 (approx. 1 person/year)
Intra-company child daycare center from 2009
(approx. 30 persons/year)
Town hall meetingfrom 2021
Round-tablediscussion
From 2023

 Recognize issues for promotion
and take measures to resolve them

Copyright 2023 NTN Corporation

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Women’s bib partner for World Athletics

Prosperous
humandevelopment

Part of responding to diversity as a social contribution to
improve corporate value■Our partnership with World Athletics
Event name

Event date

Location

World Athletics Championships

August 19-27, 2023

Budapest, Hungary

World Athletics Road RunningChampionships

October 1, 2023

Riga, Latvia

World Athletics Cross Country
Championships

March 30, 2024

Belgrade, Serbia

World Athletics Indoor
Championships

March 1-3, 2024

Glasgow, UK

World Athletics Race Walking
Team Championships

April 21, 2024

Antalya, Turkey

World Athletics Relays

May 4-5, 2024

BahamasWorld Athletics U20
Championships

August 26 - 31, 2024

Lima, Peru

2023/12/18

Copyright 2023 NTN Corporation

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Table of Contents
1.Overview of ESG Management
2.Environment (E)
3.Social (S)4.Governance (G)2023/12/18

Copyright 2023 NTN Corporation

30

Global Management Conference

Gover
nace

Build a sense of unity to ensure achievement of the next
Medium-term Management Plan

A total of approx. 220 of management executives
including online participants gathered all at once

Issues to achieve the measures were sharedat overall presentation and discussion

Discussion on key measures by team beyond theboundaries of regions and functions

Ceremony for ESG company
award ”NTN PROUD AWARD”

 Lead to transform mindset/actions aimed at improving corporate value
2023/12/18

Copyright 2023 NTN Corporation31

Governace

Localization of Management Personnel

Global HQ. formulates management policy and local managements
play an active role in overseas business operation(as of end of Mar. 2023)

RegionAmericas
EuropeASEAN
ChinaOverseas
Japan
GlobalManagement

Male

FemaleTotal

personnel％％％

Managers85%

15%

of which local

83%

100%

Managers

77%

23%

of which local

96%

99%

Managers

79%

21%

of which local

83%

100%

Managers

80%

20%

of which local

83%

100%

Managers

79%

21%

89.5%

99.7%

Managers

96%

4%of which foreign nationality

0.5%

0%

0.4%

Managers

85.3%

14.7%

100%

of which local

85%
96%
86%
86%
92%

* Percentage for ”of which local” and “of which foreign nationality” shows ratio of local or foreign managers in all managers
2023/12/18

Copyright 2023 NTN Corporation

32

Strengthen Corporate Governance

Gover
nace

●Support system for Outside Directors ●Human development<Issue> Information gap between
execution/supervision organization<Measure> Strengthen information sharing
with Outside Directors●Sustainability promotion system

Selection of executive officer
candidates
Enhancement of various
training programs

Risks/opportunities and its initiatives are deliberated/confirmed by the
Sustainability Committee and reported to the Board of Directors as necessary
Executive Officers
ReportDirectSustainability Committee
Risk Management Committee

Appointment/removal
Delegate/supervise

Board of Directors
Woman/Outside Director appointed aschairperson (in 2022)

ReportAppointment/
removalReportNominating Committee*
Compensation Committee*

Compliance Committee
Fair Trade Monitoring Committee

Audit Committee** Each chairperson is Outside Director

2023/12/18

Copyright 2023 NTN Corporation

33

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 andfuture 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 noassurance that future results will meet any expectation, estimate or projection conveyed by these statements or comments. Actual results may differ materially fromManagement projections depending on various factors such as changes in product demand, exchange rates and interest rates, and contingent liabilities.

2023/12/18

Copyright 2023 NTN Corporation34