About us

A History of Challenge and Development

achievements through its advanced technology. NTN will continue to contribute to the international society throughcreating new technologies and developing new products, aiming to realize a “NAMERAKA Society”.

History of NTN

Old head office building

1954
Noboru Niwa

1920

First in the Japanesemachinery industry toreceive the Deming Prize*

Jiro Nishizono

The Deming Prize is the world’s highest
ranking award for TQM (Total QualityManagement), and NTN was the firstcompany to receive this award in thebearing industry, as well as in theJapanese machinery industry. Thecompany was the first in the machineryindustry to introduce statistical quality
control, and was recognized for its efforts
in promoting quality control throughout
the company.

Bearings at thetime of the startof the business

1930

1940

1950

1960

1970

100th anniversary of the company’s founding
On March 1, 2018, the company celebrated its
100th anniversary, and on this occasion, launched
the communication word “Make the world
NAMERAKA(smooth), NTN”

2020

Established the brand statement“Make the world NAMERAKA”
We have established a brand statement to communicate
our commitment to a sustainable “NAMERAKA Society” in aconsistent manner on a global basis.

In conjunction with the company name change, themeaning of NTN was changed to N.T.N, which stands for“For New Technology Network (connecting the world withnew technology),” as a guiding principle for the new future.

2008

The company name of NTN-SNR ROULEMENTS S.A.
changed to NTN Europe S.A.

Head office relocation

SNR ROULEMENTS becomes a subsidiary
To expand our business in the European market, weinvested in SNR ROULEMENTS of France in 2007 andmade it a subsidiary the following year.

1980

2023

Toward improved brand awareness in Europe

1990

2000

The head office was relocated to Daibiru-Honkan to secure
the business continuity and the safety and security ofemployees in the event of natural disaster.

Quality

2010

Started production of driveshafts
The company entered into a technical tie-up with
Hardy Spicer Co., Ltd. of the U.K. and began
production of driveshafts (constant velocity joints) at
the Kuwana Works as a promising product for which
demand for automotive applications was expected
to rapidly increase in the future.
Driveshaft at the beginningof production

1964

Delivered journal bearings for the first
0 Series Shinkansen
We have contributed to the higher speed and lower weightof rolling stock by developing technologies in line with theevolution of high-speed rail and providing high-quality, highly
reliable products.
Our products have been used on the first generation 0 series
Shinkansen as well as on the latest generation of Shinkansens.
The journal bearings for the 0 Series Shinkansen have also beenrecognized as a “Tribology Heritage*” by the Japanese Societyof Tribologists.
*Tribology Heritage: Tribology-related
technologies and objects recognized by theJapanese Society of Tribologists as having
made particularly important contributions
to the development of science andtechnology.

05 NTN Report 2023

Late 1970s

Evolution of hub bearings

The axle bearing (GEN1), the predecessorof the hub bearing for which we hold the
top class share of the global market, wascommercialized in the late 1970s. In the1980s, the GEN1 evolved into a hub bearing(GEN2) with a knuckle and other peripheral
parts integrated as a unit. The GEN3 wasfurther evolved to integrate all of hub bolts,
flange, and knuckle for easier assembly on
vehicle assembly lines, and mass productionof the GEN3 began in Japan for the firsttime in the mid-1980s. Even today, theproduct continues to evolve, such as incombination with various sensors and furtherimprovements in ease of assembly.

From 2000 onward

1986

Constructed Japan’s first plant
specialized in aerospace bearings
We have been producing high-function, highquality bearings for aerospace applications and are
currently the only company in Japan to be certified
as a supplier of main shaft bearings by the four
major jet engine manufacturers in the world.
Bearings for jet engine
main shafts

Jet engine
cross-sectionalview

Technical service units
driving worldwide

For sales sites of the technicalservice cars running around theworld, we visit our customers withfully customized, multifunctional
technical service cars equipped withproduct samples and maintenancetools, and offer technical diagnosis
and technical training sessions toprovide detailed support for solving customer problems. Even after delivery of
our products, we continue to support our customers to improve productivity
and safe operation of their facilities by using our technical service cars. Above
all, we work to solve problems in our society by talking directly with customers
to find out what problems “customers around the world” are having.

What is a bearing?
Outer ring
Inner ring

GEN1

GEN2

GEN3

Rolling elements(ball/roller)
Retainer2020

2014

SASB Index

History of Product and Services

1963

Original Technologies

1989

Company name changed toNTN Corporation*Deming Prize:
Established by theUnion of Japanese
Scientists and Engineers
to commemorate theachievements of Dr.
Deming of the U.S., who
popularized statisticalquality control in postwar
Japan and laid thefoundation for raising
the quality of Japanese
products to a worldclass level.

P.23

NTN Group Information

1910

Company name changed toToyo Bearing Mfg. Co., Ltd.

2018

Sustainability Management

Since its founding in 1918, NTN has always valued twoof its founder’s spirits: the “Frontier Spirit” of continuallychallenging ourselves and the “Co-existence andCo-prosperity Spirit” of developing alongside society.
These founder’s spirits are embedded in the corporate
philosophy as part of NTN’s DNA, and we still possessthem more than 100 years later. In 1918, Jiro Nishizono,
a 21-year-old young engineer, founded Nishizono
Ironworks in Kuwana, Mie Prefecture. Noboru Niwa, wholater became the company’s first president, started his
own business at the age of 22, running a machine toolbusiness in Osaka called Tomoe Trading Co.
In 1922, Tomoe Trading Co. purchased the entire
cargo of bearings from a Swedish ship that sank inJapan and asked Nishizono Ironworks, with whom it
had a business relationship, to recondition the bearings.
With the profits from the sale of these bearings, newgrinding machines were purchased and full-scale bearing
production was started. From the beginning of production,
the bearings were marked with NTN, the initials of Niwa,
Tomoe and Nishizono.

1937

NTN’s Strengths(Competitive Advantages)

Value Creation Story

Since 1950, momentum has been building for the expansionof bearing exports. In 1961, we established our first overseas
sales company in Düsseldorf, Germany, to respond flexibly tolocal demand. In terms of manufacturing, in 1971 we became
the first Japanese company to establish a manufacturing
company in Europe in Germany, and in the same year weestablished a bearing manufacturing subsidiary in the U.S.
Subsequently, the local production system was strengthenedby establishing not only plants for finished products but also
plants for pre-production processes.
082
Through these overseas expansions, we have promoted
the shift to local production, producing our products whereour customers around the world need them.

Established “NTN Mfg. Co., Ltd.”
with capital of 50,000 yen“Frontier Spirit” and “Coexistence and Co-prosperity Spirit”
handed down from the company’s founding
Begins research and production of ball bearings at Nishizono
Ironworks in Uchibori, Kuwana-cho, Kuwana-gun, Mie Prefecture

1900

Strengthened and expanded
overseas sales and local production

1927

1918

1960s to 1970sAbout Us

Mettmann Plant,
Germany

Since the company’s inception, NTN has been committed to the “Quality First” principle, and has built up trust andProvided bearings for theAsteroid Explorer “Hayabusa 2”
The H-IIA Launch Vehicle No. 26 with the Asteroid
Explorer “Hayabusa 2” and others onboard waslaunched from the Tanegashima Space Center.
Our spherical plain bearings are installedin the hinge section where Hayabusa 2 opens
its solar panels in space, contributing to theaccomplishment of Hayabusa 2’s mission in space.

ServicesSpherical plain bearing usedin Hayabusa 2Bearings are eco-friendly products that support the rotation of all kinds of machinery and reduce energy consumption byreducing friction. The coefficient of friction of a smoothly rotating bearing is 0.001. This means that an object weighing 1,000 kg
placed on the ground can be moved by the pulling force of an object weighing about 1 kg. Bearings are used to move things
lightly, contributing to reduced energy consumption.
A typical bearing consists of four parts: the outer ring, the inner ring, the rolling elements, suchas steel balls, between the rings, and the retainer, which sets the position of the rolling elements andmaintains the spacing between them. Although the configuration is seemingly simple, bumps anddistortions in the inner and outer rings and rolling elements prevent smooth rotation. Even a single ballin a bearing is so precise that the difference in surface bumps is less than 1/10,000th of a millimeter,
requiring high technology in manufacturing.
Bearings are built into machines and used in places that are usually out of sight, but they areimportant parts that play a role in enhancing the safety and reliability of machines, contributing to therealization of a “NAMERAKA Society”.
Bearings,
Let’s Learn!

NTN Report 2023

06

About us

Nurtured Business
About Us

Net sales

774.0billion yen

Operating income

17.1

Aftermarket applications
billion yen

Fiscal year ended March 31, 2023

130.4 billion yen (17%)

Mining machinery

Metal industry
equipment

ULTAGE
spherical roller bearings withhigh-strength cage EMA TypeULTAGE
sealed four-row tapered roller
bearings CROU..LL

Industrial machinery applications

Paper-makingmachinery

Food processingmachinery

Sustainability Management

500.4 billion yen (65%)

Net sales bybusiness sector

In our aftermarket applications business, we provide bearings for repair for general machineries and automotive aftermarket parts,
maintenance tools, and devices to detect abnormality in bearings through our distributors. In this way, we help improve productivity
and ensure stable equipment operation.
We also provide a wide range of technical services to resolve issues related to bearings, such as how to handle them. Our remotetechnical support services share information about the customer’s manufacturing site with NTN’s technical experts by means ofcameras and other equipment so that we can provide quick assistance in resolving issues.
We also provide a reporting service in which NTN’s technical experts diagnose and analyze bearings based on the data measured
by the “NTN Portable Vibroscope” that customers can use to easily diagnose bearing conditions simply by installing it on equipment.
We provide full support for our customers, from supply to after services, such as “NTN Aftermarket Academy” online to enable
customers to acquire bearing knowledge.

Value Creation Story

Aftermarket applications

Automotive applications

P.33

Cement equipment

139.5 billion yen (18%)

NTN Group Information(billion yen)

Fiscal year ended March 31, 2023
Results

Fiscal year ending March 31, 2024
Forecast

Aftermarket

112.2

134.0

133.0

Industrial machinery

126.1

139.5

133.0

Automotive

403.7

500.4

544.0

Total

642.0

774.0

810.0

Aftermarket

14.7

Operating income

Industrial machinery(Operating margin)

Automotive

Net sales

Total(13.1%)

22.3

4.1(3.2%)-11.9(-2.9%)

6.9(1.1%)

Asia and others(16.6%)

22.5(16.9%)

7.3(5.2%)

7.5(5.7%)-12.4(-2.5%)

0.0(0.0%)

17.1(2.2%)

30.0(3.7%)

ULTAGE
spherical roller bearings
Type EA, Type EM

Remote technical support services

NTN Portable Vibroscope

Auto parts

Technical training / maintenance tools

201.6 billion yen (26%)
Part kits with combinations of severalbearings

Net salesby region

07 NTN Report 2023

Induction heater

Self-centering hydraulicpuller with arms

Americas155.2 billion yen (20%)

Plummer blocksJapan

170.9 billion yen (22%)

EuropePolyLube sealed bearings forfood processing machinery

SASB Index

Fiscal year ended March 31, 2022
Results

Technical service units

246.2 billion yen (32%)

NTN Report 2023

08

About Us Nurtured Business
About Us

Industrial machinery applications

P.35

Construction
machinery

Agriculturalmachinery

Gearboxes

Aerospace

P.37

NTN provides a wide range of products for automobiles as a specialist in the power/drive
train system, contributing to fuel efficiency and reducing CO2 emissions. In addition to coreproducts of hub bearings, driveshafts, and various bearings, NTN provides module productswith high functions by combining our products with peripheral components and fusing
our core technologies to contribute to the creation of safe, secure, and comfortable future
automobiles.

Machine tools

OthersValue Creation Story

NTN supplies a wide range of bearings for various industrial machinery such as construction machinery, agriculturalmachinery, robots, aircrafts, wind turbines, machine tools, railway rolling stocks, and electronic equipment to reduce
the environmental impact. NTN contributes to the development of industry and the creation of a sustainable society byproviding products and services that meet the needs for automation and labor saving at manufacturing sites including
detection of abnormality in bearings through sensing.

Automotive applications

Driveshafts

About 45%
Hub bearings

About 35%

Composition of automotive sales
Steering components
Sustainability Management

Mechanical Clutch Unit for
Next-generation SteeringSeats
Clutches forseat lifters

BrakesCombined Controller
Module Electric Oil
Pump

Rolling stock

Helping ensure stable
food production

Helping ensure high robot
productivity

Office equipment

Electronic devices

Used for worldwide jetengine applications

Helping ensure highmachining precision

Axle/Drivetrain

RobotsHelping ensure precision
operation of copier/multifunctional printerUsed for hard discdrive and thin fan motor
applications

i-WRIST™

TRINITTE™

Realizing high-speed,
high-performance visualinspection and space saving

Realizing continuous andstable parts picking

High Speed Deep Groove Ball
Bearings for EVs and HEVs

SASB Index

Needle Roller and Cage
Assemblies for Planetary Gear

Motor

Helping ensure safety ofworldwide high-speed
railways

NTN Group Information

Applications forresource mining and civilengineering

Ball Screw Drive Module
for Electric Hydraulic Brake

Driveshafts
Hub bearings

Wind turbine

Green energy products

Bearing with Insulating Coating
Contribute todisaster prevention
and mitigation withthe industry’s No.1
quietness

Wind Doctor™
Support rotation of main shafts, gearboxes,generators, etc.

Improve wind turbine
utilization rate throughcondition monitoring

sHUB

eHUB

Compact Lightweight Rear Driveshaft
R Series

Can be transported to the required locationand generate/supply electricity

CreepLess Bearing

09 NTN Report 2023

Ra-sHUB

Hub Bearings with High
Resolution Rotational Sensors

Low Friction
Hub Bearing III

GEN4 Hub Joint

High Efficiency Fixed
Type CVJ “CFJ”

NTN Report 2023

10Financial and Non-Financial Highlights

About Us

About Us

Financial Data

Non-financial DataNet Sales

Operating Income/Operating Margin

17.1

billion yen(Billion yen)

1,000.0

60.0
774.0

733.8
652.0

2.2

billion yen(Billion yen)

750.0

Operating Margin

Operating income

1.2%

20.0

1.1%

30.0

10.0

7.3

2019 2020 2021 2022

-7.0

Net Income (Loss)/
Average Shareholders’ Equity (ROE)

years
2023 2024 (Fiscal
ended/ending(Forecast) March 31)

Equity to Capital Ratio*1

5%

(%)

(%)

(yen)

1540

18

1030
5.0

5.0

20.6
20

20.4

23.1

121025.8

25.4

60

–25

-22.8
2019 2020 2021 2022

years
2023 2024 (Fiscalended/ending(Forecast) March 31)

239.4

billionyen

3.2

Inventories
Inventory turnover ratio(Billion yen)02019 2020 2021 2022

400.0

22.3 42.0
billion
yen

3.7

3.6
3.2

194.5 182.9

3.0

176.8 214.8

3.2

50.0
40.0

239.4

220.0
30.0
20.0

billionyen

Capital expenditures
Depreciation and amortization(Billion yen)

57.70

2019 2020 2021 2022

2020

2019 2020 2021 2022 2023 2024

(Fiscal years
ended/ending

54%

37.3

35.5

23.8

37.9

39.0

88%

60

‘Needs much improvement’

60
49404020200(Fiscal years
ended/ending(Forecast) March 31)

0

27.0
1.0

(Fiscal years
ended/ending
March 31)

48

51

51

54

‘Excellent’

23%

10%

56

46.3

ten thousand tons

1.4

1.2

1.1

40

62.0

59.2

54.9

300

56.4

53.7

(0.9)

(10,000tons)

348
281
243

62.0

272

20

284
15

200
52.8

30
(1.0)

16.3

ten thousand m3

349

72.8

46.3

48.6

46.3

Recycling rate

ten thousandtons

97.2

Waste generation%

Recycling rate

97.1% 96.9% 96.9% 95.8% 97.2% 96.0%
18.1
15.5

15.4

18.1

16.3

13.1

10

45.7
100

20

Number of respondents: 113

Waste generation(10,000 m3)50(1.3)(1.1)

Scope 265%

Waste Generation/Recycling Rate

40060

1.9

‘Good’(Fiscal yearsended/ending(Forecast) March 31)

2019 2020 2021 2022 2023 2024

284

ten thousand tons
Scope 10

Water Consumption

Scope 2

10.1

times

80

1.2

22.3

510
(Fiscal yearsended/ending(Forecast) March 31)

2019 2020 2021 2022 2023 2024

*1 The figures in ( ) take into account a part of the subordinated bonds through public offering that is recognized as equity (50%).

11 NTN Report 2023

(Forecast)

Scope 1

10.02019 2020 2021 2022 2023 20242019 2020 2021 2022 2023 2024

(10,000tons)

1.619.8(Fiscal years
ended/ending%‘Needs someimprovement’

71

70

67

4.4

Either ‘Excellent’ or ‘Good’

80

72

3.9

Customer Satisfaction Survey
Responses*42%64

3.9(Forecast) March 31)

(%)

63

4.0

2019 2020 2021 2022 2023 2024

100years
2023 2024 (Fiscalended/ending(Forecast) March 31)(times)2.00(%)

70
42.0

4.3

(Forecast) March 31)

Ratio of Overseas Production

CO2 Emissions [Scopes 1 and 2]

1.2(1.0)

100.00410003.045.2
38.90

Net D/E Ratio*1

Depreciation andAmortization

Capital Expenditures

60.0
3.8years
2023 2024 (Fiscalended/ending(Forecast) March 31)

Capital Expenditures /Depreciation and Amortization

Inventory Turnover
Ratio

Inventories

200.0

6-7.1

Inventories /Inventory Turnover Ratio

300.0

63

5510-2.9636264

40(Forecast) March 31)

80(28.2) (28.8)

9.0

SASB Index

4.0

5(23.4)(26.0)(Fiscal years
ended/ending

2019 2020 2021 2022 2023 2024

70%

86460

Ratio of Local Procurement*31527.4

10650(Fiscal yearsended/ending(Forecast) March 31)

yen(%)

15.0

2019 2020 2021 2022 2023 2024

Cash Dividends

25.4(28.2)

%

–50.0

(%)

10080

22.7

5.0

-11.6

4.4%

NTN Group Information

5.0

2019 2020 2021 2022

2.4%
18.7

17.4

630

(Fiscal years
ended/ending(Forecast) March 31)

2019 2020 2021 2022 2023 2024

010.8
2019

9.3
2020

8.62021

10.6

10.1

2022 2023

8.0
2024

(Target)(Fiscal years
ended/ending
March 31)0

Sustainability Management

0-44.0

-20.0

17.5

Ratio of Female Managers*2

2.8%

10.00years
2023 2024 (Fiscal
ended/ending(Forecast) March 31)

11.0

6.9

-3.10

20.0

20.0
10.4%

R&D expenditures
Ratio of R&D expenditures to sales

2.7%

21.7

30.0

2.4

billionyen

3.1% 3.1%

3.0%

20.0

17.1

-0.6%
7.5

250.0

(Billions yen)(Billion yen)

25.0

2.2%
27.2

562.8

18.7

billion yen

3.7%

3.7%
40.0

500.0

Operating margin

10.4
30.0

810.0

642.0

%

Ratio of R&D
expenditures to sales

R&D expenditures

Ratio of Overseas Employees

Value Creation Story

774.0

Operating income

R&D Expenditures
Ratio of R&D Expenditures to Sales

Profit (Loss) Attributed toOwners of Parent

2019 2020 2021 2022 2023 2024

(Target)(Fiscal yearsended/endingMarch 31)

02019 2020 2021 2022 2023 2024

(Fiscal yearsended/ending(Target) March 31)*2 Organization covered: NTN only
*3 From NTN Report 2021, the ratio of direct materials procurement in own country (region) is calculated and presented.
*4 Survey period: From October 2021 to September 2022

NTN Report 202312