December 21, 2021
NTN CORPORATION

Contents
1.NTN Group Vision and Roadmap
2.Contribution to a Carbon-free Society through Products
3.R&D Supporting ESG Management

4.TCFD Scenario Analysis and Realizing Carbon Neutrality
5.ESG Management Promotion System

2021/12/21

Copyright 2021 NTN Corporation

2

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 peoplecan easily lead a secure and fulfilling life in harmony with nature.
Founder'sSprits

CorporatePhilosophy

Management
PolicyFounder'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 withnature.

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 Corporation

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Roadmap for Realization of a “NAMERAKA Society”
 Roadmap: A medium-to long-term plan that shows our purpose of being for ESG issues
 Solving social issues by integrating Backcasting (future-oriented) and Forecasting (present-oriented)

Materiality

Environment(1) Reduce energy loss

Contribute tocarbon-freesociety

Realizecarbonneutrality
Environmental
protection

Energy-saving needs

Energy shift

Core technologies
and products

Service / solution

Hydrogen-related

Stable operation of wind turbine

Spread ofhydrogen station

Low friction and weight reduction

After2050

2040s

2030s

2020s

← Social phenomena

Arrival of hydrogen society← R&D field← Opportunities ofour businessCMS(2) Realize a sustainable
society using
natural energy(3) Respond to climate change(4) Resource recycling andpollution prevention← Our products
CVJ, hub bearing, etc.

Hydrogen Embrittlement
Resistant Bearings, etc.

Sensor Integrated Bearing Unit

Reduction ofCO2 emissions

Carbon neutrality

Carbon neutrality(Scope 1,2)
～2040

(Scope 3)～2050

Resource recycling and pollution prevention in business activities(reduction of water consumption, reduction of waste, improvement of recycling, and recycling business for our products)

Society

Contribute to EV and electrification by developing new products

Contribute toprosperous
lives(5) Provide safety
and comfort

Sustainablesupply chain(6) Improve the reliability of products
and services(quality assurance, stable supply)(7) Procurement activities
with an emphasison environment and society

Prosperous
humandevelopment

Next-generation
mobility module

Contribute to stable vehicle
Control steering angle at theContribute to fuel efficiency
driving and improved fuelleft and right rear wheels
of HV such as drive assistefficiency
separatelyand power regeneration
Adaptation to avoidance behavior Expected to contribute toduring decelerationof self-driving cars
autonomous driving

eHUBsHUB

Ra-sHUB

Support electrificationof brakes and auxiliary
equipment such aspumps

Electric Motor Actuator

Establish appropriate quality assurance system, ensure stable supply to customers, and respond flexibly to fluctuations in demand
Establish CSR procurement of suppliers(8) Respect for human rights

Eliminate human rights violation (establish system for human rights due diligence)(9) Promote safety and healthEliminate occupational accidents, establish health management, and eliminate human damage caused by fires, natural disasters, etc.

(10) Human resource development

Foster learning and nurturing culture in workplace(11) Promote diversity

Governance

EV and CASE
of automobiles

Realizatioin of a
“NAMERAKA Society"

ESG issues

Create fulfilling working environment that respects employee diversity(12) Thorough compliance

Eliminate compliance violation(13) Strengthen governanceManagement that emphasizes transparency and fairness, and improve corporate value over medium-to long-term4

Contents1.NTN Group Vision and Roadmap
2.Contribution to a Carbon-free Society through Products
3.R&D Supporting ESG Management

4.TCFD Scenario Analysis and Realizing Carbon Neutrality
5.ESG Management Promotion System

2021/12/21

Copyright 2021 NTN Corporation5

Contribution to Carbon-free Society through Products

Contributeto carbonfree society

Demonstrate NTN's strengths in the field of electric vehicles (EV) and renewableenergy, which are becoming increasingly popular
EVCore products

Bearings

Driveshaft

Hub bearing

New areas
Electric MotorActuator

WindpowereHUBsHUB

Ra-sHUB

Contributing to carbon neutrality, safety andcomfort in the automotive society

Condition monitoring system(CMS)
Bearing for main shaft

Contributing to stable operation of wind turbine
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Copyright 2021 NTN Corporation

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EVAchievements and Strengths of Core Products

Contributeto carbonfree society

Contribute to energy saving in automobiles by low friction and lightweightWorld’s No.2
market share

World’s No.1
market share

Core products

Axle/Drivetrain

Hub bearing
Driveshaft (CVJ)
that transmits a driving power that Support the wheels

Demonstrate NTN's competitive advantage (technology)

CFJ
50% reduction in torque loss(compared to conventional product EBJ)

2021/12/21

Contribute to reducing CO2 emissions by
1.32 million tons* annually throughenvironment-contributing productLow-friction HUB III
62% reduction in rotational friction(compared to 2009)(Results for FY2020, *compared to FY1997)
Copyright 2021 NTN Corporation

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EV

Contribute to the spread of EVs by enhancing
the functionality of core products

Contributeto carbonfree society

Impact on our business of the shift to EVs

Core products

Increased average sales price per car and improved profitability through higher functionality● Bearing: Demand for engine and transmission bearings disappears, and high-performance motor bearinga are added.
● Hub bearing: No change in the number of units used (4 units), high functionality (low friction, light weight, high speed)● Driveshaft: Higher functionality (lower torque loss, light weight, high rigidity, low vibration), upsizing, and shifting to
AWD (increase in the number of units used)

Demand for bearings and CVJs per car (NTN study)
Unit price per car(Demand amount indexed ※)CVJ and HUB
used in axle/drivetrain

139

150

100

Number ofunits used

1003550

Total number ofbearings decreased
to 2/3 due to theshift to EVs
2021/12/21

Higher functionality
than ICE (increasedadded value)

2936108101773538294431313131

BEV

BEV(AWD)

0ICE■bearing

HEV■bearing
軸受HUB

CVJ

Get demandwith highperformance
products

The shift to EVs isa sustainablegrowthopportunity※Assuming total demand for ICE is 100
BEV: 5%UP for HUB selling price and 10%UP for CVJ selling price
BEV(AWD): Using 4 pieces of CVJs

Copyright 2021 NTN Corporation8EV

Contribute to EV and Electrification byDeveloping New Products

Contribute toprosperous
livingAccelerate the development of high-performance products utilizing core technology
Propose next-generation mobility modules for EVs and CASE
Technologies for bearingsand ball screws+
Motor design technology
Electronic control technology

Support electrification ofbrakes and auxiliary
Electric Motor Actuator equipment such as pumpssHUB

2021/12/21

New areas

Hub bearing+
Motor Generator

eHUB

Contribute to fuel efficiency of
HV such as drive assist andpower regeneration during
deceleration

Hub bearing+
Steering assist function

Hub bearing+
Motor control technology(for rear wheels of front-wheel-drivevehicles)

Contribute to stable vehicle
driving and improved fuelefficiency
Adaptation to avoidance
behavior of self-driving cars

Control steering angle at theleft and right rear wheels
separately
Expected to contribute toautonomous driving

Ra-sHUB

Copyright 2021 NTN Corporation

9Windpower

Renewable Energy: Expand Business forWind Turbine

Contributeto carbonfree society

Supply bearings that meet the needs of larger and offshore wind turbines
Provide high-precision technical information services by abnormal detection technology using IoT

Double row
taperedroller
bearing

DLC coating

DLC coatingsphericalroller bearing

Main shaft

Developing a CMS: Condition Monitoring System Business byWind DoctorTM

No.1 installation share (in Japan)
Future development of the life expectancy forecast technology
using AI algorithms⇒ Planned maintenance of bearings and prevention of damage

Gear box

Cylindricalroller bearing

300
250

Generator

200
150
100
50

Reduction gear

02015 2016 2017 2018 2019 2020 2021 2022

CMS累積販売台数
Cumulative
total
number of CMS
installations (domestic)

Angular contact ball bearing
2021/12/21

Bearing for preventionof electrical pitting

Copyright 2021 NTN Corporation10Contents
1.NTN Group Vision and Roadmap
2.Contribution to a Carbon-free Society through Products
3.R&D Supporting ESG Management

4.TCFD Scenario Analysis and Realizing Carbon Neutrality
5.ESG Management Promotion System

2021/12/21

Copyright 2021 NTN Corporation

11

Direction of R&D (from deepening andexploration to product realization)

Contributeto carbonfree society Strengthen core technologies and products Develop businesses in new areas

Contribute toprosperous
living= Existing businesses= New areas and businesses
ESG Management (Materiality)

Contribute to society through creation of originaltechnologies (Strengthen positive impact)(1) Reduce of energy loss
(2) Realize a sustainable society using natural energy(3) Provide safety and comfort“DRIVE NTN100” Phase 2

Input of R&D resources
into 6 target areas

Medium-Term Management Plan DRIVE NTN100 (from 2018)
2021/12/21

Copyright 2021 NTN Corporation12

Target Areas to Invest R&D Resources
Focus on 6 target areas● Service / solution● Robot-related module● Next-generation mobility module② Realize a sustainable society
using natural energy● Service/solutions
Towards business providing service that
leads to sales of products
Transformation into a new business format

RobotMachine tools
Wind turbines

AI analysis CMS
Bearing-related
Bearing withapplications
sensorMonitoring⑤Provide Safety and Comfort● Renewable energy-related
Contribute to create a society where people
can live safely and with peace of mind
through technology of independent powersource utilizing power generation andstorage by renewable energy● Renewable energy-related● Hydrogen-related● Life science-related⑤Provide Safety and Comfort● Robot-related module
Contribute to automation, labor saving, andproductivity improvement in manufacturingindustry from perspectives of declining
working populations and robot collaboration
Incorporate functionsof AI and sensing

Contributeto carbonfree society

Contribute toprosperous
livingStrategic direction for R&D
Carbon neutrality(Environmental impact reduction anddecarbonization)

Pursuit of safety and comfort⑤Provide Safety and Comfort● Next-generation mobility module“Strengthen core technologies andproducts” and “Develop businesses in
new areas” from perspectives of CO2
environmental regulation and response tomobility
CoreNewareas② Realize a sustainable society
using natural energy● Hydrogen-related
Develop hydrogen-related products towards
realization of carbon neutral
Gain rapidly increasing demand due totransition to hydrogen society⑤Provide Safety and Comfort● Life science-related

Develop next-generation products for
drug discovery and diagnostic chip with thecore technology of microscopic coating
Contribute to enriching people’s lives

・Hydrogen penetration

Independent power supply /power generation / storage / monitoring (safety)

2021/12/21

Technology ・Corrosion resistancefor metal,
・Wear resistanceheat treatment, ・Low temperature lubrication
resin material, ・Low costand lubrication ・LightweightNTN Microscopic
Coating Applicator

Develop
3D cell chipDevelop test kit

Copyright 2021 NTN Corporation13Contents
1.NTN Group Vision and Roadmap
2.Contribution to a Carbon-free Society through Products
3.R&D Supporting ESG Management

4.TCFD Scenario Analysis and Realizing Carbon Neutrality
5.ESG Management Promotion System

2021/12/21

Copyright 2021 NTN Corporation14

ESG Issues and TCFD Scenario Analysis

Contributeto carbonfree society

Realizecarbonneutrality

ESG issues
TCFD scenario analysis

Contribute tocarbon-free society
Environment

Realizecarbon neutrality
Environmental
protection

Opportunities

Contribute toprosperous livingSociety

Sustainable supply chain

Prosperous humandevelopment
GovernanceRisks

Contribute to carbon-freesociety through ourproducts and services
Initiatives to reducecarbon emissions inbusiness activities(carbon neutrality)
Expand analysis results tomanagement and businessactivities

Realization of a “NAMERAKA Society"2021/12/21

Copyright 2021 NTN Corporation15

TCFD Scenario Analysis Results and Our Responses[TCFD Scenario Analysis Results]
1.5 °C scenario Case of transition to a carbon-free society

Risks

Event

ImpactSoaring carbon prices
Increasing customer demand
for the environment

Cost increase (procurement andoperation)
Decrease in transactions from customers

Energy-saving needsLow friction and lighter weightContributeto carbonfree society

Realizecarbon
neutrality

Our Responses to Climate Change

Risks

Opportunities

Carbon neutrality
Scope 1,2: by 2040
Scope3: by 2050
Core Technologies and Core Products

Opportunities

Environment-contributing product(Product Realization and Market Development)

Stable operation of wind power
Hydrogen society

Energy shift

Service Solutions

Hydrogen-related

Contributing to stable
operation of wind turbine

Contribute tohydrogenated society

Renewable energy-related
Supply electric power byindependent power supply

EV shift and CASE ofautomobiles

Modularization of energy
conservation

Next-generation mobility module
Contribute to EV and Electrification by
Developing New ProductsElectric Module Products

4°C scenario

Case that continue to emit CO2

EventRisks

Opportunities

ImpactUnusual weather(heavy rain, flood)

Shutdown of operations in-houseand supply chains

Increase in annual averagetemperature

Health damage

Catastrophic natural disaster

Securing lifelines (electricity)

Risks

Opportunities[Promote safety and health]・Eliminate human damage caused bynatural disasters
・Establish health management
Renewable energy-related

2021/12/21

Supply electric power by
independent power supply

Copyright 2021 NTN Corporation

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Realizecarbonneutrality

Toward Realization of Carbon Neutrality
Reduce CO2 emissions inthe supply chain

CO2 emissions
Down 50% compared
to 2018 (Scope 1+2)
In 2030

Carbon neutrality

Carbon neutrality(Scope 1,2)
by 2040(Scope 3)
by 2050<Initiatives to reduce CO2 emissions>•
Reduce CO2 emissions generated by heat treatment facilities (Fuel conversion, etc.)•
Reduce CO2 emissions associated with electricity usage(Procurement of renewable energy, introduction of renewable energy equipment, etc.)•Reduce CO2 emissions generated in the supply chain(Cooperation and cooperative systems with business partners, etc.)•
Introduce and utilize internal carbon pricing(Energy saving investment, selection of purchased items, etc. )[Japan]CO2 emissions
23.7

Scope2

23.6

Scope1

4.94

2018
2018年

2020
2021年

Scope2
Scope3
Scope1,2,3

Ex. Efforts to reduce CO2 emissions

28.5(10,000 tons)

Scope1Halve

Scope1

Scope2

Zero

19.7

2030

2040

[Overseas](10,000 tons)

Scope2
Scope12021/12/21

36.6
31.1

31.8
Halve
27.4

5.4

4.4

2018
12020
2

Zero
2030

2040

Electrically heated vacuumcarburizing furnace(Japan: Kuwana Works)

Power supply by solar panels(China: Guangzhou NTN)

Copyright 2021 NTN Corporation

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Contents
1.NTN Group Vision and Roadmap
2.Contribution to a Carbon-free Society through Products
3.R&D Supporting ESG Management

4.TCFD Scenario Analysis and Realizing Carbon Neutrality
5.ESG Management Promotion System

2021/12/21

Copyright 2021 NTN Corporation18

Engagement with Employees•••

Governance

Prosperous
humandevelopment

Employees are the person who actually promote the realization of a “NAMERAKA Society"
Build a common sense between our corporate philosophy (purpose) and employees
Enhance employee’s engagement through activities to spread corporate philosophy andmateriality, so that we increase corporate value over the medium to long termFounder'sSprits

CorporatePhilosophy

ManagementPolicy

Realization of a
“NAMERAKA
Society”
Our Vision

Activities to spread
corporate philosophy (since 2016)

NTN PROUD AWARD

1st :April 2018
2nd:December 2019
3rd:Canceled due tothe pandemic

2021/12/21

BookletCorporate Philosophy Dialog

 Opportunity to think about
realization of a “NAMERAKA
Society” for each employee
 Link daily work with materiality
to find its value and happiness

NTN PROUD AWARD
Copyright 2021 NTN Corporation

19Self-introduction
Governance
Structure

GovernanceIn 2019・Transition from a company with a Board of Company Audittors to a Company with a Nominating
Committee, etc.
・Strengthening corporate governance by separating supervision and execution
・By establishing 3 committees (the Nominating Committee, the Compensation Committee, and theAudit Committee) on which Outside Directors have the majority, the effectiveness of supervisory
functions and the transparency of management has been enhanced

In 2020
・The first female Director (Outside Director) is appointed

In 2021・First change of President based on the recommendation of the Nominating Committee
・Flattering the Executive Officer system to eliminate hierarchical relationshipMission as President

Revitalize
NTN
2021/12/21

Develop humanresources that willlead the nextgeneration

The goal● Strengthen team management● Move to evaluation system based on
responsibility and results
Establish a system that makes it easy to takeon new challenges
Copyright 2021 NTN Corporation20

DRIVENTN100Digitalization, Resources, Innovation, Variable cost reformation, Efficiency improvement
NTN Transformation for New 100years• These materials, presentations, and responses to the ongoing question and answer session include forward-looking statements andbusiness strategies, which are based on our management's beliefs in light of currently available information.
• Statements and statements based on these forward-looking statements are not guarantees of future performance. Please be aware that
actual results may differ from the forward-looking statements due to a variety of factors, including changes in demand for products,
currency exchange rates, interest rates, and contingent liabilities.
2021/12/21

Copyright 2021 NTN Corporation21