June 19, 2020
2020/6/19

NTN Corporation

1

Contents
I. Outline andBusiness Management Policy in FY2020
II. Financial Results for FY2019• 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 dependingon various factors such as changes in product demand, exchange rates and interest rates, and contingent liabilities.

2020/6/19

2

Outline(1) : Trends in Consolidated Financial Results
Sales: Decreased global demand due to factors such as intensity in trade friction between the U.S. and China
Effects of the new coronavirus also deteriorated sales from 4Q
Profit: Decrease due to significant decline in sales volume in spite of reduction of
FY2019 results
fixed costs (personnel costs, expenses) and variable costs
Figures in brackets are FY2018 results

FY2019 results
Operating margin（JPY bn）

Net Sales: ¥651.5bn (¥733.6bn)
YoY-11.2%, Volume -9%

Operating Income: ¥7.1bn (¥26.9bn)
YoY-73.8%, Volume -64%

Extraordinary Income: -¥32.3bn(-¥19.3bn)
Net Income: -¥44.0bn (-¥7.0bn)

Year-end Dividend: ¥0 (¥7.5)
Considering uncertainties in addition
to decline in business due to thecoronavirus, revise the year-end
dividend to ¥0 from ¥5 (annual ¥5)

FY2020 forecast
Forecast for FY2020 has not been
determined because a reasonableearning forecast cannot be calculated
at the present time due to the effectsof the new coronaviruses.
2020/6/19

Note: “Net income” shows the “net income attributable to shareholder (parent company)”.

3Outline(2): Asset Impairment
FY2019 results

Breakdown of Extraordinary Income ¥2.0bn

Net Sales: ¥651.5bn
Operating Income: ¥7.1bn
Ordinary Income: -¥1.7bn
Extraordinary Income: -¥32.3bn*Extraordinary Income ¥2.0bn*Extraordinary Loss -¥34.2bn
Pretax Income: -¥33.9bn
Net Income: -¥44.0bn

Gain on sales of investment securities:¥1.4bn
Gain on sales of property, plant andequipment: ¥0.6bn
Breakdown of Extraordinary Loss -¥34.2bn
Impairment loss: -¥29.0bn
Loss on valuation of
investment securities: -¥2.4bn
Special factory operating loss: -¥2.1bn
Loss related to Anti-Monopoly Act: ¥0.7bn

Background of Impairment loss: -¥29.0bn
1. Concern that the spread of new coronavirus infection will be prolonged
2. Policy to lower the break-even point under this business environment where
demand recovery cannot be forecast (execution of each measure)
3. For domestic and overseas businesses with low profitability, perform trial calculation
based on future cash flows that take into account the impact of the coronavirus,
resulting to implement asset impairment
2020/6/19

4Outline(3): Effects of the New Coronavirus (Demand)
From February 2020, the new coronavirus has been affecting on global market.
Volume decreased significantly compared with the same month of the last year in Europe andAmericas affected by lock down as well as other areas.
Changes in sales volume (describe the results of same month of the last year as 100, description after April is our forecast）

GlobalJapan

By location

EuropeAmericas

Asia

China

Although there are sings of demand
recovery reflecting resumption of
economic activity, severe management
environment will still continue
2020/6/19

5

Business Management Policy for NTN’s Revitalization
Set FY2020 as “Crisis response period” and FY2021-FY2023 as “Mid-term Plan Ⅱ”
Dedicate measures aiming at “business continuity” and “break-even point reduction”

DRIVE NTN100

NTN in 10

Basic Policy

Drive Forward Transformation of Business Structure for the new 100 years

Main
Strategy

Digitalization(latest digital technology) X Resources(management resources that NTN has developed)
Innovation(development of innovative technologies, products and services)
Variable cost reformation(procurement reformation)
Efficiency improvement(achivement of the world's No.1 productivity and quality)
Mid-Term Plan I(FY2018 ~ FY2019)
Crisis reponse period (FY2020)
Improve profitability andinvestment efficiency of existingproducts and businesses

Business
Operation
Management
Policies

Materialize new businesses
by creating new products andbusinessies

Establish a management system
to facilitate reform of businessstructure

Ensure the healthand safety of employees
Secure cash andcontinue businessPrepare for
future growth

Mid-Term Plan II(FY2021 ~ FY2023)
Improve profitability andinvestment efficiency of
existing products andbusinesses
Selection of new businesses
and review the allocationof resources

Management systemenhancement

Average asales grow
Unde
Considera

Operating
10% or m

Asset turn
1.0 times oForeign exc
Sensitiv
50% redu

Continue business, Internal reform（Increase added value and Reduce costs）

2020/6/19

6Important Measures in
Crisis Response Period (FY2020) (1)Crisis Response
Period（1）Ensure the health and safety of employees
1. Manage employee health and control the spread of infections
2. Respond to requests from the national and local governments andconstructing a global safety support system
3. Promotion of telework for the purpose of 3Cs (Closed spaces, Crowded
places, Close-contact settings) prevention and social distancing
4. Maintenance of employees' livelihoods

Crisis Response
Period（2）Secure cash and continue business
1. Reduce and minimize working capital
2. Secure business funds
Secure ¥100.0 billion of business funds including conclusion ofcommitment line contract
3. Suppress capital investment（cut the investment by half）
2020/6/19

7Important Measures in
Crisis Response Period (FY2020) (2)Crisis Response
Period（3）Prepare for future growth
1. Freeze investment in capacity expansion and concentrate on investment for
efficiency improvement and maintenance
2. Work style reforms centered on indirect departments
3. Withdrawal from unprofitable part numbers and expansion of aftermarket
4. Selection of new business and review the allocation of resources
5. Start and establish new IT core system, and create benefits at an early stage
6. Respond to SDGs
medium-term management plan for＋ New
three years from FY2021 to FY2023（１）Increase added value（２）Reduce costs

1. Shift to fields (business, area) with high
1. Reduce procurement and logistics
profit margins
costs
2. Expand aftermarket business with
2. Reduce fixed costs
collaboration between industrial（３）Improve cash flowmachinery and aftermarket
1. Decrease inventories
3. Increase price or withdraw in
2. Improve productivity throughunprofitable projects
production reform
4. Break away from self-sufficiency
2020/6/19

8Urgent Fixed Cost Reduction and Target
1. Urgent Fixed Cost Reduction (personnel costs)
1. Personnel downsizing mainly in overseas where labor market has been mobilized(approx. -1,500 persons in FY2019)
Continue adjustment in FY2020 considering demand environment
2. In Japan, implement production adjustment (temporary layoff) and utilize government
bounty, etc.
Promote production reform in Japan for mid-term
Crisis Response Period
New Mid-termManagement Plan

2. Target
Improve financial condition to avoid operating loss and achieve surplus of FCF even if
net sales are 80% compared to sales before spread of COVID-19 (¥570.0-580.0bn)（lower break–even point）
FY2018 (before COVID-19)
Net Sales: ¥733.6bn
Operating Income: ¥26.9bn
2020/6/19

Net Sales: ¥570.0-580.0bn(80% compared to sales before spread of COVID-19)
Operating Income: 0 or more
FCF:
Surplus9Basic Policy in New Medium-term Management Plan“（Second-term）DRIVE NTN100” for three years from FY2021 to FY2023
FY2021 to FY2023“（Second-term）DRIVE NTN100”

Detail plan to be published by March 2021

1. Improve profitability and investment efficiency of existing products and businesses① Outsource existing products and businesses, concentrate management resources on products
and processes where NTN can take advantage of our technological strengths② Promote improvements in productivity and operational efficiency through cutting-edge digitaltechnologies, such as the new factory (Wakayama) established under the new concept (smart
factory), the utilization of the new IT core system, and the introduction of RPA③ Strengthen financial framework by reducing inventories by shortening production LT throughproduction reforms, etc., thinking in a different way

2. Accelerate new business expansion① Concentrate management resources on new businesses that are close to be commercialized anddevelop them into profitable businesses in a short period of time
② Work on natural energy product business that contributes to environmentally friendly society

3. Management system enhancement, etc.

① Establish strategic organization to implement measures that anticipate changes in the businessenvironment② Strengthen further corporate governance and promote active dialog with stakeholders③ Aim to achieve a work-life balance of each employee and create better work environment,
promote reforms of personnel system to improve engagement④ Have awareness of Sustainable Development Goals (SDGs) and contribute to solve social issues
as a global Company

2020/6/19

10Aftermarket Business's Initiatives
from Crisis Response Period
Net sales and operating margin of aftermarket business

FY2019 Results ():YoY（JPY bn）

Net sales: ¥109.4bn (¥118.8bn）
Operating income: ¥12.7bn (¥15.2bn）
Operating margin: ¥11.6％ (12.8％）

FY2020 Forecast
Net sales and, operating income:not decided
Initiatives to lower break-even point from Crisis Response Period(1)Initiatives to improve profitability(2) Establish a post-corona system①Focus on core products and profitable products
in aftermarket
Promote product strategies suitable for regions
and market price ranges (Develop demand forbearing units in North America, etc.)②Promote the use of outsourced products
Utilize further outsourced products according tomarket needs① Establish a prompt delivery system for aftermarket
Complete expansion of standing inventory by theend of the year in order to secure stable instantdelivery inventory for aftermarket② Create a business model with future potential
Expand MRO business including maintenance2020/6/19

11

Initiatives in Industrial Machinery Businessfrom Crisis Response Period
Net sales and operating margin of industrial machinery business

FY2019 Results ():YoY（JPY bn）

Net sales: ¥105.1bn (¥123.4bn）
Operating income: -¥2.0bn (¥3.1bn）
Operating margin: -1.9％ (2.5％）

FY2020 Forecast
Net sales and, operating income:not decided
Initiatives to lower break-even point from Crisis Response Period(1) Initiatives to improve profitability① Selection of industries
・ Establish a business model that generates
profits by combining OEM and aftermarket
・ Raise a price and withdraw from unprofitablebusiness② Reduce cost through optimal procurement ofmaterials and parts
・ Use materials from China and India

2020/6/19(2) Establish a post-corona system① Get high profitable business by developing highperformance products such as bearings with IoT
sensors② Establish fabless system in new field (i-WRIST,Wind Doctor)

12Initiatives in Automotive Businessfrom Crisis Response Period
Net sales and operating margin of automotive business

FY2019 Results ():YoY（JPY bn）

Net sales: ¥437.0bn (¥491.3bn)

Operating income: -¥3.7bn (¥8.7bn）
Operating margin: -0.8％ (1.8％）

FY2020 Forecast
Net sales and, operating income:not decided
Initiatives to lower break-even point from Crisis Response Period(1) Transformation to profit structure (２) Establish a post-corona systemthat does not depends on volume ① Concentrate resources on fields where NTN can take① Control falling in selling price and improve
price of unprofitable products② Reduce variable cost by promoting local
procurement and optimal procurement③ Reduce fixed cost by strengthening
collaboration with alliance partners

2020/6/19

advantage of its strength of technology and productfunction (core products)② Accelerate development and mass production of products
such as EV module products. Strengthen electrical andmechanical integrated technology (new areas)③ Optimize development man-hours and costs through design RPA
13

[Reference] Key Management Indicators of“(First-term) DRIVE NTN100”
Withdraw the final year target of “DRIVE NTN100” (FY2018 – FY2020)
FY2020 target has not been currently determined
DRIVE NTN100
FY2017FY2018FY2019FY2020Results

Results

Results

TargetNet Sales\744.4bn\733.6bn\651.5bn

Operating Income\39.6bn\26.9bn\7.1bnOperating Margin

5.3%

3.7%

1.1%

Net Income\20.4bn-\7.0bn-\44.0bn

Capital Expenditure\37.6bn\45.2bn\57.7bn

FCF\13.4bn-\22.4bn-\18.1bn

Inventory Turnover Ratio

4.1

3.8

3.6

Net D/E Ratio

0.9

1.2

1.9

Equity to Capital Ratio

30.2%

27.4%

20.6%

ROE

8.4%

-2.9%

-22.8%

NTN-ROI*

5.7%

3.8%

1.0%

Dividends

\15.0

\15.0

\5.0

USD

¥110.8¥110.9¥108.7Euro¥129.6¥128.4¥120.8Exchange Rates*NTN-ROI = Net operating income after tax / (Inventories + tangible fixed assets)

2020/6/19

14

Outline of “Mid-term Plan I - DRIVE NTN100”
Initiatives for Realizing Our Vision“DRIVE NTN100” (April, 2018-March, 2021)
Accelerating Initiatives in the Next 3 Years
towards target 10 years later

NTN in 10 years

Points
1. Develop in new areas and grow up sustainably bycore technology and product
2.Focus on strengthening management base which
support business within 3 years①Valuable cost reformation②Structural reform for man-hour and resource
Smart manufacturing, (utilize IoT, AI and Robot)
Robotization in back office dept. (introduce RPA)
③Enhance SCM and concentrated investment
Use new core IT system, efficient stock management
and shortening LT, intensively invest high value added
products

2020/6/19

For more details of “DRIVE NTN100”, please refer to:15
https://www.ntnglobal.com/en/investors/pdf/findata/mtermplan2018.pdf

Contents
I. Outline andBusiness Management Policy in FY2020
II. Financial Results for FY2019• 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 dependingon various factors such as changes in product demand, exchange rates and interest rates, and contingent liabilities.

2020/6/19

16

Contents★Financial Results for FY2019 Key Factors
１．Consolidated Statements of Operation
２．Net Sales by Region
３．Net Sales and Operating Income by Business Sector
４．Results by Business Sector （Quarterly Trend）
５．Analysis of Operating Income
６．Net Sales and Operating Income by Company Location(1)Japan, Americas(2)Europe, Asia & Others
７．Inventories
８．Capital Expenditure and Depreciation
９．Interest-Bearing Debt
１０．Cash Flows
2020/6/19

17

Financial Results for FY2019 : Key Factors
FY2019 Results◇ Net sales: ¥651.5bn, a -¥82.1bn decrease year-on-year(Excl. forex, decrease -¥64.9bn)◇ Operating income: ¥7.1bn, a -¥19.9bn decrease year-on-year(Excl. forex, decrease -¥17.2bn)◇ Ordinary income: -¥1.7bn, a -¥23.9bn decrease year-on-year(Excl. forex, decrease -¥21.2bn)◇ Extraordinary income/loss: -¥32.3bn (including impairment loss: ¥29.0bn)◇ Net income: ¥-44.0bn, a -¥37.0bn decrease year-on-year(Excl. forex, decrease -¥35.3bn)◇ Planned fiscal year-end dividend of ¥0 (Annual: ¥5)

FY2020 Forecast
Forecast for FY2020 has not been determined because a reasonable earning forecast
cannot be calculated at the present time due to the effects of the new coronaviruses.
2020/6/19

18

1. Consolidated Statements of Operation(billion yen)

FY2018FY2019Results

Results①②

Net sales

733.6

651.5

-82.1

-64.9

-17.1

Operating income

26.9

7.1

-19.9

-17.2

-2.7

Operating margin(3.7%)(1.1%)(-2.6%)

Ordinary income

22.2

-1.7

-23.9

-21.2

-2.7

Extraordinary
income/loss

-19.3

-32.3

-13.0

-13.2

0.2

Net income attributable
to shareholders(parent company)

-7.0

-44.0

-37.0

-35.3

-1.7

US＄

110.9

108.7

-2.2

EURO

128.4

120.8

-7.6

Exchangerate

2020/6/19

Total

Year on Year
FY2019②-①
VolumeForex

19

1. Consolidated Statements of Operation (supplement)
Breakdown of Asset Impairment◇ Impairment loss in FY2018: ¥17.0bn
・Japan ¥17.0bn
NTN (non-consolidated): ¥5.3bn
Affiliated company: ¥11.7bn(5 companies)◇ Impairment loss in FY2019: ¥29.0bn
・Japan ¥22.0bn
NTN (non-consolidated): ¥12.7bn
Affiliated company: ¥9.3bn(8 companies)
・Overseas ¥7.0bn
Americas: ¥5.5bn(1 company)
Europe: ¥1.5bn(1 company)
2020/6/19

20

2. Net Sales by Region(billion yen)

Year on Year

FY2018FY2019Results

Results

①

②

Japan

207.2

198.0

-9.3

-9.3

Americas

201.5

174.3

-27.2

-23.1

-4.0

Europe

167.8

140.8

-27.0

-18.2

-8.8

Asia andothers

157.0

138.4

-18.7

-14.3

-4.3

Total

733.6

651.5

-82.1

-64.9

-17.1

2020/6/19

Total

FY2019②-①
Volume

Forex
-

21

3. Net Sales and Operating Income by Business Sector＜Net Sales by Business Sector＞(billion yen)

FY2018FY2019Results

Results

①

②

Total

Year on Year
FY2019②-①
VolumeForex

Aftermarket

118.8

109.4

-9.4

-6.0

-3.4

Industrial
machinery

123.4

105.1

-18.3

-15.6

-2.7

Automotive

491.3

437.0

-54.3

-43.3

-11.0

Total

733.6

651.5

-82.1

-64.9

-17.1

＜Operating Income by Business Sector＞
FY2018FY2019Results

Results①②

Year on Year

FY2019②-①

Aftermarket

15.2

12.7

-2.4

Industrial
machinery

3.1

-2.0

-5.1

Automotive

8.7

-3.7

-12.3

Total

26.9

7.1

-19.9

2020/6/19

22

4. Results by Business Sector （Quarterly Trend）
Automotive

Industrial machineryOperating Income/ Operating Margin

Net Sales
200.0
180.0
160.0

140.0
120.0

189.2

18.0

②-①

181.0181.9 181.5

13.4% 12.3% 12.3% 13.1% 11.8% 12.0%

171.7
30.5 282 00162.8 160.4 028.2 29.6
30.6
0156.6
0 28.2### 000027.8 26.6 026.8
31.2
00
0 31.0121
30.8 30.5
28.2
25.7 24.5
26.6

0
15.0

0
0
12.0
0

0
3.7% 1.7% 0-1.0%
2.1% 2.6%
0.1%
0 -1.1% -1.5%0
3.6%
1.0% 1.0%
0 1.2% 0
-0.9%
-1.1%
0 -3.2% -2.5%
0
9.9

4.1
6.0

80.0

1.1
127.5 119.6 123.3 120.9 115.3 109.3 109.3
103.1

3.0

4.7

40.0

0.0

6.2

5.5

5.4

3.8

3.5

3.9 3.1

0.5 0.70.8
1.2 1.3 1.5

20.0

0.0

1Q

2020/6/19-3.0

FY2019FY2018
2Q

3Q

4Q

1Q

2Q

3Q

4Q

10.4%12.4%

9.0

100.0

60.0

Aftermarket

0.5

2.0

3.3 3.3 2.8 3.3
0.1-0.2-0.8 -0.6-0.3 -1.2-1.6 -1.1
FY2019FY2018

1Q

1.4

2Q

3Q

4Q

1Q

2Q

3Q

4Q

23

5. Analysis of Operating Income （FY2019）＊All figures in billion yen.

2020/6/19

24

6. Net Sales and Operating Income by Company Location＊All figures in billion yen《 Japan 》《 Americas 》
Net Sales

Net Sales
450.0

250.0

347.3

353.1

329.1

300.0

200.0

198.5

198.3

FY2017FY2018

171.1

150.0
100.0

150.0

50.0
0.0

0.0

FY2017FY2018FY2019Operating Income

Operating Income

20.0

2.3%

15.0
10.0

20.0

0.2%

-0.4%

3.6%

15.0
10.0

8.0

7.1

5.0

5.0

0.7

0.0

FY2019

-1.3

2.2%
-3.8%

4.3

0.0

-6.4

-5.0

-5.0

-10.0

FY20172020/6/19

FY2018FY2019FY2017FY2018FY201925

6. Net Sales and Operating Income by Company Location＊All figures in billion yen《 Europe 》
Net Sales《 Asia and others 》
Net Sales《 欧州 》

250.0

200.0

《 アジア他 》

250.0

192.5

184.0

200.0

155.6

150.0
100.0

100.0

50.0

50.0

0.0

162.0

155.6

FY2017FY2018150.0

0.0

FY2017FY2018FY2019Operating Income

Operating Income

8.0

30.0

6.0
4.0

25.0

1.5%

0.5%

0.3%

19.6

11.1%

FY2019

8.5%

17.2
11.4

10.0

1.0

0.4

FY2018FY20190.0

FY2017

20.0

12.1%

15.0

2.8

2.0

2020/6/19

134.9

5.0
0.0

FY2017FY2018FY201926

7. Inventories
300.0

Overseas

4.1

250.0

Inventories(billion yen)

200.0

179.7

Inventory turnover ratio

3.8
194.5

3.6
182.9

4.0

3.0

150.0
100.0

123.5

132.9

122.9

2.0

1.0
50.0

56.2

61.6

60.1

Inventory turnover ratio (times)

Japan

0.0

0.0

FY2017FY2018FY2019(billion yen)

Inventories(Overseas)(Japan)Inventory
ratio
turnover2020/6/19

FY2017
Results
179.7(123.5)(56.2)
4.1

FY2018Results
194.5(132.9)(61.6)
3.8

FY2019Results
182.9(122.9)(60.1)
3.627

8. Capital Expenditure and Depreciation（billion yen）

Investment（Japan）

Investment（Overseas）

Depreciation（Japan）

Depreciation（Overseas）

57.7

60.0

45.2
30.0

37.6

37.5

22.0

24.0

38.9
27.5

28.0

23.6

37.3
23.9

29.7
15.6
0.0

13.5

FY2017 Results

17.7

15.3

13.4

FY2018 Results

FY2019 Results(billion yen)

FY2017FY2018FY2019Results①Results②Results②-①
Capital expenditure
37.6
45.2
12.5
※ 57.7(Overseas)(22.0)(27.5)(28.0)(0.5)(Japan)(15.6)(17.7)(29.7)(12.0)※In addition, capital expenditure of ¥9.9 billion of intangible fixed assets
FY2017FY2018FY2019Results①Results②Results②-①
Depreciation
37.5
38.9
37.3
-1.6
(Overseas)(24.0)(23.6)(23.9)(0.2)(13.5)(15.3)(13.4)(-1.9)(Japan)2020/6/19

28

9. Interest-Bearing Debt
Overseas

Net D/E ratio

1.9

Interst-bearing dept(billion yen)

500.0
400.0
300.0

0.9

320.8
87.8

1.5

1.2

350.3
99.1

2.0

362.4

1.0

104.0

0.5
0.0

Net D/E ratio

Japan

600.0

200.0
100.0

233.0

251.2

258.4

-0.5

-1.0

0.0

-1.5

FY2017FY2018FY2019(billion yen)Interest-bearing debt

(Overseas)(Japan)Net Interest-bearing debt

2020/6/19

FY2017
Fesults
320.8(87.8)(233.0)234.7

FY2018Results
350.3(99.1)(251.2)266.9

FY2019Results
362.4(104.0)(258.4)291.3
29

10. Cash FlowsFY2017
Results(billion yen)

FY2018①Results

FY2019②Results②－①

Ⅰ．Cash flow fromoperating activities

61.8

43.2

43.7

0.5

Ⅱ．Cash flow frominvesting activities

-48.4

-65.6

-61.8

3.8

Ⅰ+Ⅱ．Net cash flow

13.4

-22.4

-18.1

4.3

Ⅲ．Cash flow fromfinancing activities

-7.5

20.7

7.4

-13.3

Ⅳ．Effect of exchanging rate translation
on cash and cash equivalents

0.9

-1.0

-1.7

-0.7

Ⅴ．Net increase in cash andcash equivalents

6.8

-2.6

-12.3

-9.7

100.0
80.0

60.0

CF from Operating Activities

CF from Investing Activities

61.8

Net CF

43.7

40.0

13.4

20.0

43.2

0.0

-20.0

-60.0

-48.4

-65.6

-61.8

FY2017 Results

FY2018 Results

FY2019 Results-80.0

2020/6/19

-18.1

-22.4

-40.0

30

11. NTN Revitalization Scenario- Toward Corporate Value Creation (ROIC 5% or More)FY2017 Results
Net sales: ¥744.4bn
Operating income: ¥39.6bn

FY2023 (new mid-term plan)
Net sales: ¥700.0 bn(¥700.0-¥750.0 bn)
Operating income: ¥42.0bn (6% or more)

N
e
t

R

O
D

I

E

C

R
a
t
①Sales of assets"Selection and②Business integration
Concentration"ioand closure

FY2019 Results
Net sales：¥651.5bn
Operating income：¥7.1bn“Structural ①Fundamental review of marketing and pricing strategy②Strengthen production control and inventory control
Reform” ③Break out of self-sufficiency

Crisis Response
PeriodNew Mid-term Management Plan

Achieve ROIC 5% or more, maintain ROE 8% or more, return 4% to shareholders, and allocate the remaining 4% tosustainable growth in the future.

2020/6/19

31

DRIVENTN100Digitalization, Resources, Innovation, Variable cost reformation, Efficiency improvement
NTN Transformation for New 100years

2020/6/19

32

[Reference] Aftermarket Business:
Actual Results for FY2019<Results for FY2019 (compared with FY2018)>
Net Sales: ¥109.4bn, Operating Income: ¥12.7bn•

Industrial machinery aftermarket and automotive aftermarket both decreased year-on-year in Japan,
Americas and Europe due to the sluggish market•

Business activity was restricted and demand dropped in some areas in 4Q due to the spread of new corona virus

Sales
（bn）

OperatingMargin

+2％
-14％

+2％

-5％

±0%

-7％

+5％

+4％

-12％

-15％

-2％

-7％

-8%

-7%

±0％

+9％

FY2019 Second half result（compared to previous announcment）
volume -10％

2020/6/19

Note: % in the bar graph represents year-on-year changes excluding exchange rates

33

[Reference] Industrial Machinery Business :Actual Results for FY2019<Results for FY2019 (compared with FY2018)>
Net Sales: ¥105.1bn, Operating Income: -¥2.0bn•

Sales declined in almost all major industries, including construction machinery, agricultural machinery,and gearbox, and profits declined due to a decline in scale•

Demand has declined since 4Q due to customer shutdowns and supply chain disruptions caused by theoutbreak of the new coronavirus

Sales
（bn）

OperatingMargin

-4％

±0％
-9％
+9％
-17％
+6%

+4％

2020/6/19

-14％

-15％

-19％

-12%

-19%

-15％

-5％

-15％

-10％

FY2019 Second half result（compared to previous announcement）
volume -5％

Note: % in the bar graph represents year-on-year changes excluding exchange rates

34

[Reference] Automotive Business :Actual Results for FY2019<Results for FY2019 (compared with FY2018)>
Net Sales: ¥437.0bn, Operating Income: -¥3.7bn•

Lower than the previous year due to the impact of sluggish vehicle sales in all regions of Japan, Americas,
Europe, Asia, and China•

Demand has been declining in China and other regions since 4Q due to the shutdown of vehicle production
caused by the new coronavirus

Sales
（bn）

Operating Margin

+1％

+2％
-1％

-10%

-2％
-12％
-7%

-6％

2020/6/19

-8％

-12％

-3％
-16％
-12%
-15％

-11％

-13%

FY2019 Second half result（compared to previous announcement）
volume -9％Note: % in the bar graph represents year-on-year changes excluding exchange rates

35