May 16, 2023

NTN Corporation Q&A Summary of FY2022 IR Meeting(Fiscal year ended March 31, 2023)
Q1.

In the results for the fiscal year ended March 31, 2023, the aftermarket andindustrial machinery businesses are improving, while the automotive businessis not improving very well. What is the reason for this?

A1.

First, the aftermarket and industrial machinery businesses have started sales
price increase activities earlier than the automotive business, after conducting
cost reduction activities including proportional cost to reform their coststructures. Second, there are differences in the products in the businesses.
While bearings account for the majority of sales in the aftermarket andindustrial machinery businesses, CVJ and hub bearings account for 80% ofsales in the automotive business. In addition, the automotive businessexperienced a delayed recovery in sales in the China region, which had been
profitable. We have been conducting very tough price increase negotiations
around the world in the automotive business, but as negotiations have beendifficult and protracted, additional cost increases have caused profits todecline. We will catch up quickly with cost increases through price increases
and other measures to strengthen cost competitiveness and generate
appropriate profits in the automotive business.

Q2.

Regarding the automotive business, were you able to raise sales prices asplanned? Regarding the higher than expected cost increase, do you plan toraise the price this year?

A2.

Steel and energy price increases that occurred during the fiscal year need tobe reflected in the same year, but negotiations are still ongoing at present.
For the current fiscal year, we intend to raise prices to cover the cost increases
left over from the previous fiscal year as well as cost increases in the current
fiscal year. Before the COVID-19 pandemic, our challenge was how to control
the extent of price reductions in response to requests for discounts from
customers. Now, with higher costs, we have finally been able to startnegotiating price increases with our customers. Our sales force, underpressure, worked hard to negotiate a price increase, but we were unable toreach our goal. During the negotiations, we received some harsh words from
customers, but there were also customers who wanted to continue doing
business with NTN and asked us to tell them if we had any problems. We hope
to use this opportunity to further build a relationship of trust with ourcustomers.
1Q3.

I believe that the company is conducting sales activities with an emphasis on
profitability, but due to the automobile model cycle issue, I assume that it willtake some time to see the effects of these activities. When do you expect tosee the effects?

A3.

We discuss with automotive customers about projects three years ahead, so
we make quotations with prices three years ahead.

Q4.

I would like to ask about the level of inventory and how to hold it in the future.

A4.

Automobile production and sales were expected to rebound significantly in 4Q.
However, due to the shortage of semiconductor supplies and other factors,
production was continuously reduced from customer forecasts we received ona weekly basis in countries around the world. We cannot predict when thesemiconductor supply shortage will be resolved, but it is improving little bylittle. The enough supply of semiconductors and other electronic componentscan lead to a sudden surge in demand, so we need to stock up on them. On
the other hand, from a management perspective, it is also necessary toimprove the inventory turnover ratio, so we will control it while looking at thebalance.

Q5.

The CFO was replaced in April, but will there be any changes in policies, etc.?

A5.

There is no change. With regard to NTN's revitalization scenario and plans forthe current fiscal year, we will find signs of change in the numbers and quickly
respond to management issues, and the executive officers will work together
to realize NTN's revitalization.

Q6.

The automotive industry is shifting to EVs. What are NTN's strengths?

A6.

Our CVJ and hub bearings will not disappear even after shifting to EVs. As
EVs require larger input torque, larger CVJ and hub bearings are required.
NTN has 8-ball type CVJ, lightweight product with a different design fromother companies, and the vehicle becomes larger in size, we have the greater
weight advantage. We believe that we can demonstrate our superiority in thearea where the vehicle weight increases by 150 to 200 kg due to the demandfor improved electricity efficiency of EV.

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