New Medium-term Management Plan

Presentation material

May 31, 2024

NTN Corporation©2024 NTN Corporation

INDEX

1. Review of the Previous Medium-term Management Plan “DRIVE NTN100” Phase 2
2. Long-term Vision
3. Positioning of New Medium-term Management Plan “DRIVE NTN100” Final

4. “DRIVE NTN100” Final(1) Management Indicators(2) Basic Strategies(3) Key Measures(4) Basic Policies and Strategies by Business Sector

5. Realize Management that is Conscious of Cost of Capital and Stock Price©2024 NTN Corporation2

1
Review of the Previous Medium-term Management Plan
“DRIVE NTN100” Phase 2©2024 NTN Corporation

31．Review of the Previous Medium-term Management Plan

Net Sales and Operating Income◼ Net sales achieved the target by positive effect of exchange rate
◼ Operating income did not achieve the target due to delay in passing
on higher procurement cost mainly in automotive business
6.0%

Operating margin（％）

Net sales
Operating income

3.4％

Net sales/Operating income（billion yen）

Operating margin

2.2%

836.3

1.1%

774.0

(0.6%)

700.0

642.0
562.8
42.0
28.1
17.1
6.9

(3.1)
Previous Mid-term Plan Target

FY2020

FY2021

FY2022

FY2023

FY2023©2024 NTN Corporation

4

1．Review of the Previous Medium-term Management Plan

Comparison with Target of Medium-term Management Plan by Business Segment◆ Comparison with Target of Medium-term Management Plan by Business Segment
Aftermarket

Industrial machinery

16.6%
14.5%

13.1%

134.0

138.9

5.2%

Operating margin（％）

Target12.0％

3.2%

Automotive

3.7%

500.4

Target4.0％

0.3%

Target
4.7％

403.7
369.5

139.5

9.7%

126.5

126.1

112.2

(3.4%)(2.9%)

0.6%

Operating margin（％）

FY2023

Net sales（billion yen）

(2.5%)

101.9

91.5
Net sales（billion yen）
FY2020570.8

Operating margin（％）

FY2021

FY2022

FY2023

Net sales（billion yen）
FY2020

FY2021

FY2022

FY2020

FY2021

FY2022

FY2023◆ FY2023 quarterly transition of Net sales and Operating margin
Industrial machinery

Aftermarket
13.5%
35.5

11.9%

13.5%

Automotive
6.3%

18.6%

4.1%
2.6%

142.6

1.7%

32.6

148.0

132.4

36.5

34.4

147.8

32.9

31.9

30.5

2.0%

31.3

2.7%

0.4%
(3.1)

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q
©2024 NTN Corporation

5

1．Review of the Previous Medium-term Management Plan

Review on Major Measures
Variable cost reformation

Neutral◆ Strengthen of competitiveness by exploring

suppliers in India and South Korea
engineering/design departments◆ Product launch in line with market needs such
◆ Insufficient acceleration of business creation
for new product

Neutral◆ Increased net sales and profits and expanded
capital investments◆ Issue: drastic increase in supply capacity anddevelopment of supply source

Promotion ofreorganization of production

Poor◆ Delays in outsourcing production to
overseas suppliers◆ Delays in consolidating/restructuring bases
to increase profits

Neutralas for EVs◆ Issue: overseas expansion involving

Strengthen of
Aftermarket business

R&D of new products andacceleration of business creation

Improvement of productivity
using digital technology

Neutral◆ Largely reconstructed of IT core system◆ Issue: expanding smart factories andlabor-saving measures

Strengthen offinancial structure

Good◆ Generated cash flow by selling crossshareholdings and refraining investment etc.
◆ Improved net D/E ratio and equity to capital ratio©2024 NTN Corporation

6

1．Review of the Previous Medium-term Management Plan

Financial Results: Comparison with Target of Previous Medium-term Management Plan(billion yen)

FY2020Results

DRIVE NTN100
Phase 2 ①

FY2023Results ②

Diff.
②-①

Net sales

562.8

700.0 or more

836.3

+136.3Operating income(3.1)

42.0 or more

28.1

(13.9)

Operating margin(0.6%)

6% or more

3.4%

(2.6pt)FCF

18.5

27.0 or more

40.1

+13.1

Inventory turnover ratio

3.2

4.1

3.2

(0.9)

20.4%

20% or more

29.0%

+9.0pt1.6

1.5 or less

0.9

(0.6)

ROIC

(0.4%)

5% or more

3.2%

(1.8pt)ROE(7.1%)

8% or more

4.4%

(3.6pt)Equity to capital ratio
Net D/E ratio◼ FCF (72.0 billion yen/3 years) and improvement of financial structure achieved the target.

◼ Need to strengthen earning power (= to improve operating margin and reduce inventories）©2024 NTN Corporation

7

2Long-term Vision©2024 NTN Corporation

8

2．Long-term Vision

Changes of NTN’s Business Environment
Uncertain global situation◼ Rise of hegemonism andprotectionism due to security
concerns◼ Impact on raw material
prices and supply chain

Changes in businessenvironment

Social requirements
for sustainability◼ Intensify competition and lowpriced sales by appearance of
emerging competitors◼ Specified targets and initiatives
for achieving carbon neutrality◼ Acceleration of EV andelectrification in automotive
market◼ Increased information security
risks and natural disasters suchas earthquakes and floods◼ Risk of sudden exchange rate
fluctuations◼ Respond for diverse work styles

External environment is increasingly uncertain, and structure is changing from the past
Increased demand for sustainability©2024 NTN Corporation

9

2．Long-term Vision

The NTN Group’s Vision for FY2035

Vision for FY2035
A company trusted and needed by stakeholders with enhanced corporate value- Generate sustainable profits that exceed capital cost Economic value
FY2024 to FY2026

New Medium-termManagement Plan
Measures designed bybackcastingfrom the vision
for FY2035

Achieve and further improve ROE that constantly exceeds
shareholder capital cost even under economic fluctuation■Transformation of business structure−Sales ratio: Aftermarket 40%, OEM 60％−Create and develop new businesses

VisionA NAMERAKA
Society

Environmental/social value

Achieve carbon neutrality, fulfill prosperous humandevelopment■ Achieve carbon neutral target (Scope1, 2)■ Foster an organizational culture that works to increase
economic and environmental/social value and develop
diverse human resources that can work with job satisfaction©2024 NTN Corporation

10

3
Positioning of New Medium-term Management Plan
“DRIVE NTN100” Final©2024 NTN Corporation

11

3．New Medium-term Management Plan “DRIVE NTN100” Final

Positioning of New Medium-term Management Plan “DRIVE NTN100” Final
2018

2019

2020

2021

2022

2023

2024

2025

2026

DRIVE NTN100
Basic Policy：Drive Forward Transformation of Business Structure for the new 100 years
Digitalization（latest digital technology）x

Resources （Management resources that NTN has developed）
Innovation（development of innovative technologies products and services）

Final

Variable cost reformation（procurement reformation）
Efficiency improvement（FY2024-FY2026）（achievement of the world’s No1 productivity and quality / improvement of asset efficiency)

Phase 2Phase 1
（FY2018-FY2019）⚫ Improve profitability andinvestment efficiency of
existing products andbusinesses⚫ Materialize new businessby creating products andbusinesses⚫ Establish management
system to facilitate reformof business structure

New Mid-termManagement
Plan

Crisis Response
Period（FY2020）⚫ Ensure the healthand safety of
employees⚫ Secure cash andcontinue business⚫ Prepare for future
growth（FY2021-Fy2023）⚫ Improve profitability andinvestment efficiency of
existing products andbusinesses⚫ Select new business andreview the allocation ofmanagement resources⚫ Strengthen corporate
governanceAchieve ROE8％
Continue enforcing thebasic policy of “DRIVE
NTN100” and accomplish“revitalization of NTN”
by promoting structuralreform and improving
earning power

2027～

Next Mid-termManagement
Plan
Early
achievement of
10%ROE ormore
New products
sales ratio
regarding bearing
and others andCVJ/Axle
20％

2035
Vision for
FY2035
Achieve andimprove ROE
above shareholder
capital cost
Aftermarket ratio
40％
Achieve carbon
neutrality
Fulfill prosperous
Humandevelopment

Forecasting by analyzing
internal and external
environments
Backcasting from what
we aim to be in FY2035©2024 NTN Corporation

12

4“DRIVE NTN100” Final©2024 NTN Corporation

13

4．”DRIVE NTN100“ Final(1) Management Indicators: Management Indicators of “DRIVE NTN100” Final
Target Management
Indicators (billion yen)

FY2024
Forecast

FY2023Results ①

FY2026
Target ②

FY2025
TargetDiff.
②-①

Net sales

836.3

860.0

840.0

830.0

(6.3)

Operating income

28.1

32.0

44.0

50.0

+21.9

Operating margin

3.4%

3.7%

5.2%

6.0%

+2.6ptExtraordinary income(loss)

(3.4)

(8.0)

(17.5)(5.0)-

Net income

10.6

5.0

9.0

21.5

+10.9

Inventory turnover ratio

3.2

3.6

4.0

4.5

+1.3

ROIC

3.2%

3.9%

5.4%

6.2%

+3.0pt

ROE

4.4%

2.1%

3.7%

8.0%

+3.6ptEquity to capital ratio

29.0%

27.9%

29.5%

30.0%

+1.0pt

0.9

0.9

0.8

0.7

0.2pt improved¥144.5¥145.0¥140.0¥140.0(¥4.5)¥156.7¥160.0¥150.0¥150.0(¥6.7)Net D/E ratio
Exchange 1USD
rate
1EURO

©2024 NTN Corporation

14

4．”DRIVE NTN100” Final(1) Management Indicators: New Organization to Promote Transformation of Business Structure◼ Strengthen our supply capabilities and proposing optimal solutions for sales expansion inaftermarket business by consolidating bearing business and integrating OEM andaftermarket◼ Increase profits and respond to new needs such as electrification in CVJ/Axle business
New Organization（by products）

Former Organization（by market)

From FY2024

Prior to FY2023

Aftermarket

Industrial
machinery

Bearing

Bearing

CVJ/Axle

Bearing andOthersAutomotive

CVJ/Axle

Aftermarket

Bearing

Aftermarket

Industrial machinery

CVJ/Axle

Automotive

Automotive
Aftermarket
17%
FY2023

OEM
83%

Aftermarket
20%
FY2026OEM
80%

Aftermarket
40%

MarketOEM
60％
FY2035Aftermarket business 6% annual growth©2024 NTN Corporation

15

4．”DRIVE NTN100” Final(1) Management Indicators: Target of Net sales and Operating Income by Business Segment

Bearing and others

CVJ/Axle

Operating margin

Operating margin（％）

Net sales

Net sales/Operating income（billion yen）

Operating income

7.8%

4.2%
80

5.1%
400.0

350.0

346.8

70

360.0

370.0

500.0

Operating income

4.6%

3.1%

550.0

2.1%

4.6%
357.0

Net sales

Net sales/Operating income（billion yen）

6.7%

450.0

Operating margin

Operating margin
（％）

489.5

503.0

80

480.0

70

460.0
60
450.0

60

50
50

400.0
40

29.0

300.0

24.0
17.7
250.0

40
350.0
30
30

16.4

20

10

200.0

0

FY2023

FY2024FY2025

FY2026

300.0

15.6
250.0

20.0

21.0
20

10.4
10

200.0

0

FY2023

FY2024FY2025

FY2026©2024 NTN Corporation

16

4．”DRIVE NTN100” Final(2) Basic Strategies: Basic Strategies of “DRIVE NTN100” Final
Vision for FY2035

Transformation ofbusiness structure
Improvecompetitivenessof OEM business

Expand aftermarket
business

Create and develop
new businesses

Strategies to support
transformation
Transformation ofbusiness foundation

Value chain reform◼
◼

◼

Design reform, prompt
commercialization
Procurement reform,
production reform, logistic
reformDefensive quality, proactive
quality and profitable quality◼
◼
◼

Strengthen portfolio with neworganizational structure
Promote measures andstrengthen follow-up using KPIs
Generate profits by utilizing
digital technology

Evolution of ESG
management◼
◼

◼

Carbon neutral and sustainable
response
Human resource development
and work styles respecting
diversity
Advancement of governance andstrengthening risk management

SQCCD

NTN Driven based on the premise of customer-first

Safety Quality Compliance Cost & Cash Delivery & Development

The mindset to challenge the transformation of business structure©2024 NTN Corporation

17

4．”DRIVE NTN100” Final(3) Key Measures: Expand Aftermarket BusinessResponsiveness that keeps customers’ machines and plants running andengineering solutions considerate of customers to solve problems
Strengthen supply capability

Strengthen engineering solutions<Industrial machinery aftermarket><Industrial machinery aftermarket>◼ Expand external purchasing and outsourcing
for the aftermarket products◼ Strengthen “bearing life cycle management”
through integrated OEM/aftermarket
operations◼ Optimal allocation and expansion of production
capacity through integrated OEM/aftermarket
operations◼ Expand sales by expert organizationfor engineering solutions◼ Expand inventories of popular products forthe aftermarket◼ Expand service business such as
bearing diagnosis and refurbish<Automotive aftermarket><Automotive aftermarket>◼ Expand product lineup by
utilizing external purchasing
and outsourcing◼ Expand sales to Europe andAmerica and strengthenmarketing to other regions

Overseas supplier

NTN Portable
Vibroscope

Remoteservice
center©2024 NTN Corporation

18

4．”DRIVE NTN100” Final(3) Key Measures: Improve competitiveness of OEM business
Cash flow oriented business operation andproviding value to meet market needs and functional requirement from customers

Structural reform

Procurement/design reform andexpand external purchasing◼ Improve asset efficiency by reorganization of
production bases in the Americas, Europe, China
and Japan◼ Drastic review on costs through production at
optimal site
◼ Price increases and reduction in unprofitablebusiness◼ Cost reduction by design not trapped in theconventional design concepts and reviewing
materials◼ Maximize profits by restructuring the supply chainof parts and finished products

Develop new products that meet market needs and bring them to market speedy◼ Accelerate development of new products that meet market needs such as EV and electrification etc.

Deep Groove Ball Bearings
for EVs and HEVs

Special Heat Treatment High Efficiency Fixed Type CVJ
Technology “HA-C”“CFJ”

Low Friction
Hub Bearing

Contribution to profit
improvement
Further new productdevelopment©2024 NTN Corporation

19

4．”DRIVE NTN100” Final(3) Key Measures: Create New Products and Develop New Businesses
Accelerate development speed through a one-stop organization andincorporate advanced technology through external collaboration◼ Accelerate product development by establishing Innovation & Business
Development HQ. in charge of ascertaining needs, product planning, productplanning/development, and mass production◼ Build in quality, cost and delivery through advanced manufacturing development
linked to product development

NTN Next Generation Research
Alliance Laboratory◼ Rebuild ball screw technology and strengthen elemental technology development
leading to new product creation◼ Collaborate with NTN Next Generation Research Alliance Laboratory and external
research institutes to discover and utilize advanced technology and develop humanresources

i-WRIST for visual inspection

Strengthen development of new module products and system products◼ Accelerate development and commercialization of mobility module products
such as ball screws for electric brakes

Ball screw for electric brakes◼ Accelerate product development and commercialization of robot-related module
products to facilitate labor saving and carbon neutrality◼ Create organizations to manage compliance with international standards forelectrification and develop human resources in fields such as electronic control
development.
◼ Expand green energy products business (NTN Green Power Stations, N3 N-CUBE)

N3 N-CUBE as an eco toilet©2024 NTN Corporation

20

4．”DRIVE NTN100” Final(3) Key Measures: Value Chain Reform
Engineering Chain Management (ECM)
Market research

ECM reform (Quality)

Product planning◼ Defensive quality◼ Proactive quality◼ Profitable quality

Sales

ECM reform (Design)◼
◼
◼
◼

DesignPrototype
Procure-ment

Manufac-turing

Review of design standards
Review of material procurement
Digitalization of design work
Commercialization of products ingrowth field

Logistics

Distribution

Supply Chain Management (SCM)
SCM reform(Procurement)

SCM reform (Manufacturing)

SCM reform (Logistics)◼ Global optimal procurement◼ Purchase price optimization◼ Development of new
suppliers◼ Procurement reform andstreamlining◼ Digitalization of manufacturingwork◼ Investment in labor saving and CN◼ Redesigning logistics
network◼ Improving truck loadingrate◼ Response to 2024 problem©2024 NTN Corporation

21

4．”DRIVE NTN100” Final(3) Key Measures : Transformation of Business Foundation- Generate Profits utilizing Digital Technology◼ Reduction in operational costs by enhancing thefunctionality of core systems

Basic policy ofdigital utilization◼ Objective and rapid decision making by
developing a data-driven environment◼ Improvement of work efficiency and accuracy byutilization of advanced digital technology

Wakayama Works

Sales and administration

Research and development

Manufacturing and procurement◼ Integrate core systems globally◼ Reduce lead time and costs based ondata analysis◼ Improve efficiency of prediction, searchand documentation using AI◼ Shorten development period byanalysis system utilizing AI◼ Expand abnormality detection services
and condition monitoring by sensors◼ Achieve automaton and labor saving inline work by expanding smart factory◼ Improve productivity by smart devise
utilization

Develop digital human resources◼ Reskill employees to improve their digital literacy◼ Secure and develop highly skilled digital human resources for utilization of advanced digital technology

Enhance information security continuously◼ Expand security measures within plants, on products and the entire supply chain◼ Develop NTN-CRIST globally and strengthen security education©2024 NTN Corporation

22

4．「DRIVE NTN100」Final(3) Key Measures: Evolution of ESG management
E:Environment

S:Social
Fulfill prosperous human development

Promote activities to achieve CN◼ Reduce CO2 emissions by more than 30% by FY2026
compared to FY2018 toward achievement of carbon
neutrality◼ Develop and provide products and services that
reduce energy loss to the utmost limit
Global CN Target and Results
80

Scope2
Scope2 実績
Results

728K ton70

目標値
Target

40
30
20
10
0

CO2 emissions(10K ton）

60

50

Scope1
Scope1 実績
Results■ Secure and develop diverse human resources-Expand support for self-directed career development-Establish the job-standard manager personnel system-Introduce performance-linked compensation (bonus) system-Develop next-generation management■ Foster an organizational culture-Strengthen support measures for balancing work andchildcare/elderly care
-Enhance employee engagement through workplace
improvement activities etc.
-Implement and continue town hall meetings by management

Compared to
FY2018FY2030 Over50%
reduction
Compared to FY2018
FY2026 Over 30% reduction

Carbon Neutrality
Year

G:Governance

Advancement of governance◼ Evaluate after transition to a Company with a Nominating
Committee, etc. and promote continuous improvement
activities◼ Dialog between Outside Directors and stakeholders◼ Enhance and strengthen internal controls based on
Internal Control Policy◼ Strengthen risk management system©2024 NTN Corporation

23

4．”DRIVE NTN100” Final(4) Basic Policies and Strategies by Business Sector: Bearing and others
Business target
FY2026 Operating margin 7.8%

Policy1. Expand aftermarket business
2. Improve profits in bearing OEM business3. Develop products for electrification and strengthenmarket competitiveness by reviewing application
standards and design criteria
4. Enlarge service solutions

Main strategy
Expand aftermarket business

Market environment
Construction machinery Earthquake reconstruction projects, stable growth associated with
infrastructure development and progress in automation and electrification
Agricultural machinery Population growth in emerging countries, and electrification andautomation by labor shortages and aging populations in Japan , U.S. and Europe
Gear box Growth in the robot market due to labor-saving measures to address labor shortages
Aerospace Growing passenger demand, and increasing communication satellite services tostimulate the space industry
Rolling stocks Infrastructure development in emerging countries due to the economic growth
and addressing environmental issues
Wind turbine Increasing wind power generation to achieve a carbon neutral society
Machine tool Energy savings through automation and efficiency using IoTAutomobile Decrease in engine vehicles and expansion of electric vehicles, especially BEVs
Aftermarket (Industrial machinery) Expanding demand from the aftermarket due to economic
expansion in emerging countries(Automotive) Increase in the number of vehicles on the road due to global
population growth and longer vehicle life

Bearing life cycle
management■ Strengthen supply capability• Expand external purchasing and outsourcing
Replacement• Optimal allocation and expansion of
Maintenanceproduction capacity through integrated OEM Analysis
and aftermarket operation• Expand inventories of popular products forthe aftermarket
Selection
Monitoring■ Strengthen engineering services• Strengthen “bearing life cycle management”
DeliveryUsage
through integrated OEM/aftermarket operations• Expand sales by expert organization for engineering solutions• Expand service business such as bearing diagnosis and refurbish

Improve profits in OEM business◼ Improve asset efficiency by reorganization of production
bases in the Americas, Europe, China and Japan◼ Drastic review on costs through production at optimal site
◼ Price increases and reduction in unprofitable business◼ Develop new products that meet market needs and bringthem to market speedy“Resin Mold Insulated Bearing” for e-Axle©2024 NTN Corporation

24

4．”DRIVE NTN100” Final(4) Basic Policies and Strategies by Business Sector: CVJ/Axle
Business target
FY2026 Operating income 4.6％

PolicyMarket environment◼ Automotive markets will expand moderately, while weakness in Japan and Europe◼ HEVs will peak out around 2028
◼ NEVs will consistently grow in ratio

1. Pass-on price and set selling price appropriately
2. Improve profit margin of existing projects
by value chain reform
3. Ensure profits and return on investment
expected when receiving new orders
4. Respond to EV market needs

45%

ICE

67%

HEV
NEV

26%

20%
28%

27%
20%
13%

15%

28%

46%

65%

FY23FY24FY25FY26FY27FY28FY29FY30FY31FY32FY33FY34FY35

Main strategy◼ Expansion of the automotive aftermarket based on an increase in the number of vehicles
on the road due to global population growing and longer vehicle life

Improve profits of OEM business

Expand aftermarket business◼ Improve asset efficiency by reorganization of production basesin the Americas, Europe, China and Japan.
◼ Price increases and reduction in unprofitable business◼ Deepen partnerships with customers based on problem-solving andproposal capabilities◼ Procurement reform, design reform, and cost reduction by design
not trapped in the conventional design concepts and reviewing
materials◼ Maximize profits by expanding external purchasing, andrestructuring supply chain of parts and finished products◼ Develop new products that meet market needs and bring them tomarket speedy■ Strengthen supply capability• Develop alternative products and outsourcing• Expand product lineup through external purchasing• Establish LCC brand and expand sales■ Relocate aftermarket headquarters functions to Europe
and establish sales expansion system

High Efficiency Fixed Type CVJ “CFJ”

Shudderless Sliding Type CVJ “PTJ”

Fixed Type CVJ

Sliding Type CVJ©2024 NTN Corporation25

5
Realize Management that is Conscious of Cost of Capitaland Stock Price©2024 NTN Corporation

26

5．Realize Management that is Conscious of Cost of Capital and Stock Price

Cost of Capital and ROE: Current Status and Future Targets
14.0%

Next Mid-termManagement Plan
ROE 10％ or more

12.0%

10.0%

Shareholder capital cost 10%-12％

Target for FY2026
ROE8％

8.0%

6.0%

WACC approx. 6%

4.0%

5.0%

4.0%

2.0%
2.0%

5.4%
4.4%
3.2%

3.9%

6.0%

3.7%

2.1%

ROE

0.8%

ROIC

0.0%

FY2021

FY2022“DRIVE NTN100” Phase 2

FY2023

FY2024FY2025“DRIVE NTN100” Final

FY2026
Next Mid-termManagement plan

©2024 NTN Corporation

27

5．Realize Management that is Conscious of Cost of Capital and Stock Price

Cash Allocation◼ Aim to increase corporate value by achieving both business growth andimproved financial soundness
Cash allocation(3 years)

200.0 billion yen
Cash and deposit etc.
20.0 billion yen● Steady profit increase● Improve inventory
turnover ratio andimprove CCC by
reducing working capital

200.0 billion yen
Repayment of loans
60.0 billion yen● Raise the rating perspective tofacilitate diversified fund raisingon favorable terms

Return to shareholders(dividends) 20.0 billion yen● Achieve stable and continuous
dividends

Operating CF
180.0 billion yen● Implement structural reform

Investing CF
120.0 billion yen● Invest in growth areas● Invest for carbon neutrality● Digital investment● Invest for facility maintenanceand labor saving

Cash IN

Cash OUT©2024 NTN Corporation

28

5．Realize Management that is Conscious of Cost of Capital and Stock Price

Policy of Return to Shareholders◼ Continue to implement dividends according to business results in a stable and continuous
manner from a medium-to-long-term viewpoint◼ DOE2.5％ is the lower limit and we aim to DOE4% after accomplishing the target of “DRIVE
NTN100” Final* All figures in yen

10

15*

15

7.5

7.5

5.0

5.0
FY2016

Interim dividends

Year-end dividends

10
5.0

5
7.5

FY20177.5

FY20185.0
FY2019

11
5.5

5
2.5

0

0

2.5

FY2020

FY2021

FY20225.0

5.5

FY2023

FY2024(Forecast)

0.0

FY2026* Including 100th anniversary commemorative dividends©2024 NTN Corporation

29

5．Realize Management that is Conscious of Cost of Capital and Stock Price

For improvement of ROE
Net income margin

Total asset turnoverFY2026 2.4％ or more▲

FY2023 1.3％▲

FY2026 3.3 times

×▲

FY2023 0.92

FY2023 3.4 times＝＝

FY2026 8.0％↑
FY2023 4.4％

FY2026 1.0 or more

＝

ROE

×

Financial leverage

Net income

Net sales

Total assets

FY2026 20.0 billion yen
or moreFY2026 830.0 billion yen
or more（Inventory turnover ratio）◼ Expand aftermarket business◼ Improve profits in CVJ/Axle
business◼ Increase aftermarket ratio◼ Expand new business and new
products ratio

FY2026 4.5◼ Expand and accelerate production
reform activities◼ Overall supply chain optimizationand lead time reduction◼ Accelerate structural reform÷÷

Net sales

Total assets

EquityFY2026 830.0 billion yen
or moreFY2026 4.5（Inventory turnover ratio）

FY2026Equity to capital ratio 30%◼ Increase aftermarket ratio◼ Expand new business and new
products ratio◼ Expand and accelerate production
reform activities◼ Optimize the entire supply chain
and reduce lead time
◼ Accelerate structural reform÷◼ Achieve steady profits
improvement◼ Reduce interest-bearing debt

Strengthen and facilitate dialog with stakeholders

Capital cost
reduction◼ Disclose video and script of IR meeting in both ◼ Strengthen direct dialog between shareholders/investors andsenior management/Outside Directors
Japanese and English◼ Educate employees about the importance of dialog and◼ Enhance business briefing and plant tour forcollaborate with IR-related departments
shareholders and investors©2024 NTN Corporation30

⚫ 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 thesestatements or comments. Actual results may differ materially from Management projections depending on various factors such aschanges in product demand, exchange rates and interest rates, and contingent liabilities.

©2024 NTN Corporation