May 20, 2013
NTN Corporation
2013/5/20

1

Contents
Ⅰ. Start of New Medium-termManagement Plan “Revival 2014”
Ⅱ. Financial Results for FY2012 andForecast for FY2013
This presentation and comments made in this conference or during the following Q&A session include forward-looking
statements about management expectations for future performance and future business strategies. 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 as changes in product demand, exchange rates and interest rates and contingent liabilities.

2013/5/20

2

From “Revival” to “Growth”
For further “Growth”

Emphasis on profit

・Strategies for low share regions,business type, and customers
・Release high value-added products to market“Revival” from crisis
Emergency
Measures・Reduction personnel costs
and expenses
・Reduction inventories
・Utilization of existing
equipment
・Cartels problem
・Surcharge
2013/5/20 11/3

13/3

Towards 100th Anniversary
Since FoundationExpansion ofNew Products
Centralization ofManagement Resources
・Sales expansion for theAftermarket/Distributor
・Strengthening Industrial
Machinery Business Globally・Greater profits in the AutomotiveBusiness

Structural Reform・Reform to personnel costs
・Acceleration of overseas production
・Selection of business3

Ⅰ. Start of New Medium-termManagement Plan “Revival 2014”
1. Financial Results for FY2012 andForecast for FY2013
2. Reform Business Structure to Generate Profit

3. Results and Forecast for Aftermarket andDistributor Market
4. Results and Forecast for Industrial Machinery Market

5. Results and Forecast for Automotive Market

2013/5/2041. Financial Results for FY2012 and Forecast for FY2013
Operating margin

4.6%

6.7%
4.9%

Operating income：
800
1.3%

0.3%
5,301

5,000

Net sales ：539.6 billion yen

3.8%

Net sales（100million yen）
7,000

6,000

FY2012 （Results）

5.0%

5,435

5,396

5,700

6,000

6,000

700

“Emergency Measures”

Operating
600 income（100 million yen）

4,527

500
4,000

400
400

3,000

280

246

300
300

7.3 billion yen“Structural Reform”“Centralization ofManagement Resources”

New Products andNew Business

207

2,000

200

1,000

73

1001400FY2009

FY2010NTN 2010
for The Next Step2013/5/20

FY2011FY2012 FY2013 FY2013 FY2014 FY2014(former） （new） （former） （new）

Global Advance2013

Revival 2014

※Exchange rate of FY2013：US$=¥95, €=¥120

FY2013 （Forecast）
Net sales： 600 billion yen
Operating income：30 billion yen

Toward business structure
to generate profit
52. Reform Business Structure to Generate Profit

Operatingincome
Centralization ofManagement Resources

Structural Reform

Exchangerates
Scale merits
Increases in costs of newcompanies, etc.
Sales pricelevelsEmergency
MeasuresExchangerates
Decrease invariable costs
Temporary costs inAmerica etc.
Increases in costs of newcompanies, etc.
Sales price levels

Operatingincome

62013/5/20

Operatingincome

The results of “Centralization ofManagement Resources” and“Structural Reform” are expectedfor FY2013＊All figures in 100 million yen.

FY2013

FY2012FY201173300

FY2013 （Forecast）
FY2012 （Results）
Scale merits

207“Revival 2014”＜Trend of operating income＞

FY2012 : Results of “Emergency Measures”
ThemePlan（100 millionyen）

Main policies of FY2012

Results（100 millionyen）

ReducePersonnel Costs

20

Reduction in salaries, bonuses
・Reduction chiefly within NTN
Calling for applicants for early retirement
・407 employees applied for calls for approximately 600 employees
・Another approximately 200 employees will be called forapplications this fiscal year

30

Reduce FixedCosts

35

Reduction in expenses across all departments
・Reduction in various expenses across all departments, chiefly
within NTN

45

ReduceInventories

1,570

Reduction due to companywide project activities and practical useof IT system
・Reduce Inventories in Japan and Overseas
・Achieved plans for quantities when excluding theeffects of exchange rates

1,633（1,541）
excludingexchangerates

Limit Capital
Expenditure

480

Limited due to utilization of existing equipment, local procurementof equipment
・Shift to investment amount within depreciation costs for thesecond half・Increased amount only due to the effects of exchange rates

490

Abolish, sellassets

2575

Abolish unnecessary equipment and buildings
Early retirement system and withdrawal a part of product in theprecision equipment
Expenses related to land improvement in the former site ofTakarazuka Plant

27640

2013/5/20

307

FY2013 : Start of “Revival 2014”
Amount of effects of main policies on
the operating income （Forecast）
AutomotiveIndustrialmachinery andAftermarket/Distributor

50

1464

Early retirement

35843

Reform of logistics business

213

Subtotal

37

946

Reduce fixed costs （personnel costs, expensesetc.）

311445118

37155

Theme

Centralization ofManagement
Resources（variable cost）

Structural Reform

Emergency
MeasuresTotal

2013/5/20（100 million yen）

Main policies of FY2013

・Revise of price with the use of common partsand reviews of design and manufacturing and soon, VA/VE, Change to internal production
・Decrease variable costs of global site byexpansion of local procurement and localproduction of pre processes

Total83. Results and Forecast for Aftermarket and Distributor Market<Results for FY2012>• Movement of products slowed down due to lower demand, and business sales
and small-lot sales decreased
20.3%
20.0%
• Increased demand for automotive parts in North America and MRO business inOperating margin
Europe<Forecast for FY2013>

16.5%
Net sales
1,200(100 million yen)

1,000

800

600

400

940

-5％

Asia

EuropeAmericas+18％ 1,050
892

Asia

Expand sales channel and cultivate core distributors
Develop MRO business+25%Europe

Increase sales to major OEM customers
with MRO business
Expand sales channel in East Europe and Russia+26%

AmericasStrengthen collaboration systemwith major distributors
Expand sales for parts kit for trucks

+28%

Japan

Accelerate to develop new customers

-5%

Asia
EuropeEurope

Americas

Americas200Japan

Japan

Japan

'12/3

'13/3

'14/3

0

2013/5/20

Asia

Key products for sales expansion：Spherical roller bearing, Large bearing, BU
Key policy：Increase sales by improving supply systems forgeneral purpose products
94. Results and Forecast for Industrial Machinery Market<Results for FY2012>

4.5%
Net sales(100 million yen)

Operating margin

3.1%
1.6%

<Forecast for FY2013>

1,200

1,066 -12%
1,000

800

Asia

+4%

937
Asia

970

+21%

EuropeExpand sales for rolling stock andagricultural machinery
Expand with new orders for aircraft+14%

Americas

For construction machinery, there is a major
decrease in demand for mining
Agricultural machinery remains steadydue to economy recovery

+9%

Japan

Expand sales for aircraft, rolling stock andwind turbine
Major decrease in demand for construction
machinery, and gears and reducers

-13%

Asia

EuropeAmericas
Americas

Americas400200

Increase sales for wind turbine androlling stock in China
Demand for construction machinery andmachine tools recover in Korea

AsiaEuropeEurope600• Aircraft and agricultural machinery increased in Japan, however construction
machinery decreased immensely• Agricultural machinery and aircraft increased in North America, howeverconstruction machinery decreased• Decreased in Europe due to the impact of the economic effects. In Asia,
shipments to China decreased

JapanJapanJapan

0'12/3
2013/5/20

'13/3

'14/3
10

5. Results and Forecast for Automotive Market
1.5%
Operating margin

Net sales-0.9%(100million yen)

4,500

+12%
+4%

4,000
3,500
3,000
2,500

-2.5%

3,429
Asia
Europe3,566<Results for FY2012>• In North America, both Japanese and American manufacturers were favorable• Sales decreased in Europe due to a drop in new car sales figures• Decrease in sales for Japanese manufacturers due to boycott movement inChina<Forecast for FY2013>

3,980
Asia

Asia

Increase sales in ASEAN due to firminternal demand
Further market growth in China and recovery
for Japanese manufacturers+32%Europe

Production figures remain unchanged
due to economic uncertainty
New contracts resulted in increase sales+12%

Americas

Positive production of automobile due toreplacement demand
Start of new projects add to sales

+21%

Asia
EuropeEurope

2,000
1,500

Americas

Americas

AmericasJapanJapanJapan

'12/3

'13/3

'14/3

1,0005000

2013/5/20

Japan

Reduction in sales due to the end of the eco-car subsidy
Reduction in sales due to transfer of-7%
production overseas of car maker

11Improvement to Automotive Market Operating Income
Automotive Market
Operating Income

1.5%
Operating margin

-0.9%
-2.5%

+15 billion yen60-32-90

12/3

2013/5/20

13/3

FY2012: -9 billion yen
・ Decrease in sales and production scale, drop in sales
price level
・ Increase in temporary costs due to shipping issues atplants in America
・ Limits to discounts
・ Shift to surplus for 4Q

14/3
Forecast

FY2013: 6 billion yen
・ Reviews of design and manufacturing,use of common parts
Centralization
・ Expand local procurement, localof Management
production of pre processes
Resources
・ Price increase of low-profitability
models, etc.
Structural
・ Reduction of personnel costs in Japan
Reformwith early retirement
・ Eliminated causes of temporary costs for the previous term・ Increase sales and production scale, effects of exchange
rates, etc.

12

Ⅱ. Financial Results for FY2012
and Forecast for FY2013

2013/5/20

13

Contents★Financial Results for FY2012 : 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(1) FY2012(2) FY2013
６．Net Sales and Operating Income by Region(1) Japan, Americas(2) Europe, Asia & Others
７．Inventories
８．Interest-Bearing Debt
９．Capital Expenditure and Depreciation
１０．Cash Flows
2013/5/2014Financial Results for FY2012 : Key Factors
FY2012 Results◇ Net Sales decreased by 0.7% year-on-year to 539.6 billion yen(decreased by 1.8% if excluding the effects of exchange rates)
・The automotive market increased by 4.0% year-on-year（increased by 2.7% if excluding the effects of exchange rates ）・The industrial machinery market decreased by 12.1% year-on-year(decreased by 13.0% if excluding the effects of exchange rates)
・The aftermarket and distributor market decreased by 5.0% year-on-year(decreased by 5.8% if excluding the effects of exchange rates)◇ Operating income decreased by 64.9% year-on-year to 7.3 billion yen(decreased by 73.3% if excluding the effects of exchange rates)◇ Net income was a loss of 14.2 billion yen(Net income was 6 billion yen for the same period last year)

FY2013 Forecast◇ Net Seles increased by 60.4 billion yen （+11.2%） year-on-year to 600 billion yen◇ Operating income increased by 22.7 billion yen(4.1 times) year-on-year to 30 billion yen◇ Net income increased by 24.2 billion yen year-on-year to 10 billion yen◇ Dividends of interim is has yet to be decided as well as year-end◇ Exchange rate of FY2012 : 1US＄=¥95, 1EURO=¥120

2013/5/20

15

1. Consolidated Statements of Operation(100 million yen)

Net sales
OperatingincomeOperatingmarginOrdinary income
Extraordinary
income/loss

Net income
Exchange US＄rate

EURO

2013/5/20

FY2011Results

FY2012
Results

FY2013
Forecast

Year on year
FY2012FY2013①②③②－①③-②

5,435
207(3.8%)

5,39673(1.3%)6,000300(5.0%)- 39- 134(-2.5%)604
227(3.7%)

187- 236025- 164- 142

230- 40
100- 162
- 141
- 202

205
124242

79.1
109.0

82.9
106.8

95.0
120.0

3.8
- 2.2

12.1
13.2
16

2. Net Sales by Region(100 million yen)
FY2011FY2012FY2013③Year on year
FY2012②-①
VolumeForex

Year on year
FY2013③-②
VolumeForex

Results

Results

Forecast

①②

Japan

1,934

1,775

1,636- 160

0- 1390Americas

1,246

1,416

1,698

113

56

71

212

Europe

1,330

1,248

1,436

- 57

- 25

30

158

Asia &Others

924958

1,230

430

132

140

Total

5,435

5,396

6,000

- 100

61

945102013/5/20173. Net Sales and Operating Income by Business Sector＜Net Sales by Business Sector＞(100 million yen)
Year on year

FY2011FY2012FY2013Results

Results

Forecast①②③

Automotive

3,429

3,566

3,980

934465348

Industrial
machinery
Aftermarket/
Distributor

1,066937

970

- 139

10- 3972940

892

1,050

- 54

76890

Total

5,435

5,396

6,000

- 1006194510

FY2012②-①
VolumeForex

FY2013③-②
VolumeForex＜Operating Income by Business Sector＞(100 million yen)
Year on year

FY2011FY2012FY2013Results

Results

Forecast

FY2012FY2013①②③②-①③-②

Automotive- 32- 9060- 58

150

Industrialmachinery
Aftermarket/Distributor

481530- 3315191147210- 4363Total

207

73300

- 134

227

2013/5/20

18

4. Results by Business Sector （Quarterly Trend）
4Q improved operating margin drastically in all business sector due to the effects ofexchange rates.
Automotive
Industrial machinery
Aftermarket/Distributor

Operating Income/ Operating Margin

Net Sales’12/3-1Q 2Q
2013/5/20

3Q

4Q ’13/3-1Q 2Q

３Q

4Q’12/3-1Q 2Q

3Q

4Q ’13/3-1Q 2Q

3Q

4Q
19

5-1. Analysis of Operating Income （FY2012）＊All figures in 100 million yen.
Negative factors（ 190 ）

Positive factors（ 56 ）
Decrease invariable costs
Exchange rates

Increase in personal costs

39145

17-134FY2011
Full year
Operating
Income9Expenses etc.
(Depreciation -3, Other -6)

Sales price levels

135

Scale
merits

FY2012
Full year
Operating
Income73207

FY2011 Full year < Results >vsFY2012 Full year < Results >2013/5/20

20

5-2. Analysis of Operating Income （FY2013）＊All figures in 100 million yen.

Negative factors（ 67 ）

Positive factors（ 294 ）
Decrease in variable
costs
Decrease in personal
costs
Exchangerates

Scale
merits12375

35

Expenses etc.
(Depreciation -13, Other -22)

32

Sales price levels

28+22768

FY2013Full year
Operatingincome
300

FY2012
Full year
Operating income
73

FY2012 Full year < Results >vsFY2013 Full year < Forecast >2013/5/20

21

6. Net Sales and Operating Income by Region《 Americas 》《 Japan 》
Net Sales

Operating Income

2013/5/20(100 million yen)

Net Sales(100 million yen)

Operating Income226. Net Sales and Operating Income by Region《 Europe 》
Net Sales

Operating Income

2013/5/20(100 million yen)

《 Asia & Others 》
Net Sales(100 million yen)

Operating Income

23

7. Inventories
Inventories (100 million yen)

2,500

Japan

3.9

Overseas

Inventory turnover ratio (times)

3.5

3.3

1,551

1,633

3.9

2,000
1,500
1,000

1,370
834

977

1,102

1,550

3.0

2.0

1,074
1.0

500
0

4.0

536

574

530

476

Mar-11Mar-12Mar-13Mar-140.0(100 million yen)

Inventories
Overseas
JapanIn ve n t o r y t u r n o ve rr at io(t im e s)

2013/5/20

Mar-11Mar-12Mar-13Mar-14

Results

ResultsResults

Forecast

1,370(834)
(536)
3.9

1,551(977)
(574)
3.5

1,633(1,102)
(530)
3.3

1,550(1,074)
(476)
3.9
24

Inventory turnover ratio (times)

 FY2012 increased due to the effects of exchange rates (quantity decreased year-on-year).

8. Interest-Bearing Debt
Japan

4,000
3,000
2,000
1,000

In t e r e st - be ar in g de bt

Overseas
JapanIn t e r e st - be ar in g de bt

2013/5/20

Interest-bearing debt ratio (%)

5,0000r at io (% )Overseas

35.3%
2,233690

39.2%
2,72047.0%

46.5%

3,608

3,660

40%

1,322

1,362

30%

924

50%

20%

2,286

2,298

1,543

1,796

Mar-11Mar-12Mar-13Mar-14(100 million yen)

Mar-11Mar -12Mar-13Mar-14

Results

Results

Results

Forecast

2,233(690)(1,543)

2,720
(924)
(1,796)

3,608(1,322)(2,286)

3,660(1,362)(2,298)

35.3%

39.2%

47.0%

46.5%

10%0%

25

Interest-bearing debt ratio (％）

Intrest bearing debt (100 million yen)

 FY2013 expected to increase slightly due to an increase in cash reserves and the effects ofexchange rates.

9. Capital Expenditure and Depreciation
 FY2013 expected to increase production capacity overseas within the scope of depreciation .
Investment（Japan）

600

297364142

Depreciation（Japan）

4903421393503483570Overseas
Japan

Depreci a ti onOverseas
Japan

2013/5/20

300

262
218

F Y2010

Capit al e xpe n dit u r e

385

213

161

182
115

Depreciation（Overseas）

600

544
359

300

Investment（Overseas）

181

203

133

F Y2011

188
88

F Y20121720F Y2013(100 million yen)

FY2010ResultsFY2011
Results①FY2012
Results②

FY 2 0 1 3
Fo r e c ast ③

②-①

③-②

FY2010Results

FY2011Results①

FY2012
Results②

FY 2 0 1 3
Fo r e c ast ③

②-①

③-②

297(182)(115)
359(142)(218)

544(364)(181)
342(139)(203)

490(357)(133)
348(161)(188)

350(262)(88)385(213)
(172)

-55
(-7)
(-47)

7(22)
(-15)

-140(-95)(-45)
37(53)(-16)
26

10. Cash Flows Free cash flow for FY2013 will move a surplus due to an increase in sales CF andlimited capital expenditure
FY2010FY2011FY2012FY2013(100 million yen)
Results
Results①Results② Forecast③②-①③-②

Ⅰ．Cash flow from operating
activities

445

171

205

338

35133

Ⅱ．Cash flow from investing
activities-322-528

-566

-333

-38

233

Ⅲ．Cash flow from financing
activities

-67

472

696

47

223-649

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

17110-5-11-5

Ⅴ．Net increase in cash andcash equivalents

73

125

335

47

210

-288

1,000
500

CF from operating activities

445

123

CF from investing activities

338

205

171

Net CF50-500

- 322
- 528

- 358

- 566

- 361

- 333

-1,000FY2010Results

2013/5/20

FY2011Results

FY2012
Results

FY2013
Forecast27