Second medium-termbusiness plan

2030 Vision
August 27, 2024

JTEKT CORPORATION

Table of contents
1. Review of First medium-term business plan
2. JTEKT Group 2030 Vision
Transformation to solution provider

Target Value

3. Growth strategy, Priority measures
Strengthening solution creativity

Strengthening Competitiveness

Foothold,
Current cases

Goals and strategies by each business,
Digital Monozukuri

Restructuring the global structure

4. Strengthening management foundation
People and Site 1st Management

Promoting carbon neutral

Cash allocation, Shareholder return
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1. Review of First medium-termbusiness plan

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1. Review of First medium-term business plan

First medium-term

FY23▼

Three-year period for enhancing
our corporate structure

4 Keywords

Second medium-term
Growth of existing
businesses and developmentof new businesses

FY26▼

Third medium-term

FY30▼

Reaping results and leaping
forward① Strengthening
Competitiveness② Seeding for the future③ Strengthening managementfoundation

Business Structure has been enhanced successfully
under the first medium-term business plan

④ Development of humanresources and organizational
structures
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41. Review of First medium-term business plan
Although established the profitability and tree-ring growth, the goal of business profit
was not achieved
Review of KPI in the first medium-term business plan:
FY23 goal: Business profit 100-billion-yen, Break even point sales ratio: 80％
Revenue (Billion of yen)

Break even point sales ratio (%) ※ratio to FY19 revenue

150

100
85.0

85.4

82.5

Business profit goal: 100 billion yen

100

63

82.5

73

20

16
0

FY20

FY21

FY22

FY23

First Medium-term period
Revenue (Billion yen)

1,246

1,428

1,678

1,891

Business Profit Ratio (%) 1.3

3.0

3.7

3.9

3.3

5.3

5.5

ROE (%)

0.2

60
40

42

50

80

0

Achievements
Reduction of fixed costs through the promotion of site
consolidation（ End of Mar 2021: 152 companies ⇒ End of March 2024: 119
companies ; -33 companies）
Focus on improving the break-even point sales ratio andtransform into a leaner structure

IssuesBusiness profit goal not achieved.
The improvement has slowed down from the ROE andprofit margin perspectives.

Sales decreased in Europe and China.
Productivity declined in North America.

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51. Review of First medium-term business plan｜Environment changes
During the first medium-term business plan period, the external environment andindustrial structure changed rapidly
Rapid Adoption of BEVs••

Increased environmental awarenessDecreased demand for internal
combustion engine parts› There are few products with decreasing
demand, and the impact is minimal. On
the other hand, unable to seize new
business opportunities

Increasing demand for software••

Development of connected cars
Shortage of software talent› The enhancement of product value
through software expansion is insufficient.

Spread of COVID-19••

Decline in the workforce and the
spread of remote work
Disruptions in the supply chain› In North American factories, employee
retention has declined, and productivity
has decreased since COVID-19

Transforming management to enhance value continuously in response to changes in theexternal environment
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2. JTEKT Group 2030 Vision

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2. JTEKT Group 2030 Vision

JTEKT Group 2030 Vision

A solution provider
creating the future ofmobility society throughMonozukuri andMonozukuri equipment
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2. JTEKT Group 2030 Vision│Transformation into a Solution Provider｜Basic thought
By utilizing the resources generated from adding higher value to existing products, we will
challenge new business areas
Earning power
Added value

Ⅰ

Ⅰ

Combining core technologies and competencies to add higher
value to the current product lineup and to improve investment
efficiency

Adding higher value to existing products

Integrated planetary
reduction carrier JUCD®

ⅡCurrent products andtechnologies

Ⅱ

Integrated Bearing
Gear

SiC※1 Grinding
machineUsing the resources earned in Phase I as a foundation, we willpropose solutions for new business areas based on issues and needs

Challenging new business area
Expandingthe scope

Mobility 1.0

Mobility 2.0

Mobility 3.0

Expansion of Car Value

Expansion of the
Mobility Domain

Social Systematization

Pairdriver®

（automatic steering
control system）

J-EPICS®

（SbW※2）

Libuddy®

（Lithium ion capacitor）

J-PAS fleairy®
（Assist suit）※1 SiC：silicon carbide, ※2 SbW：Steer by Wire

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92. JTEKT Group 2030 Vision│Transformation into a Solution Provider｜What is solution＜Passive type business＞＜Solution type business＞

Start business after receiving Job Request(requirements specification)

Provide solutions based on needs throughco-creation

End Users

Society and End Users

Provide products
and services

Understandsocial issues

Customers (i.e. Car Makers)

Receive Job
RequestProvide products
and service

Customer is all stakeholders in the mobility society

Discuss withcustomers andco-createneeds.

Provide theunit

Provide solutions
with an appropriate
business model*

Providing solutions
with an appropriate
business model**Not only providing products, but also flexibly offering IP/design blueprint
sales, manufacturing outsourcing, and more
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2. JTEKT Group 2030 Vision│Transformation into a Solution Provider｜JTEKT so far
Providing element technologies and components related to each business according tocustomer requirements.
Machine Tool

Machine tool element
technologies
Steering element
technologies

Driveline element
technologies

Bearing element
technologies

Driveline

Bearing
Steering

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Safety PLC design technology
NC equipment design technology
NC equipment
Tools design technology
Blade surface creation technology
Gear skiving
Production facilities design technology

Cylindrical grinding

HMI cooperative control

Angular control technology

Torque control technology

EPS system

Forging design technology

Press technology

Ball screw technology

Injection molding technology

Heat treatment technology

FC system

Solenoid valve technology

Precision work technology

HUB

Seal design technology

Torque management system

Coating technology

D tooth surface correction technology

High precision bearing

Precision work technology

Ultra low torque bearing

Tribology

EXSEV bearing

Materials/heat treatment technology

3

Each business operates its element technologies and components independently, without activities
that combine and enhance value across the entire company

2. JTEKT Group 2030 Vision│Transformation into a Solution Provider｜JTEKT future vision
Combine our core technologies and competencies to expand into various business areas
as JTEKT has history with 2 different backgrounds and business areas
Various customers and social needs
Technology Platform

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Safety PLC design technology
NC equipment design technology
NC equipment
Tools design technology
Blade surface creation technology
Gear skiving
Production facilities design technology

Cylindrical grinding

EXSEV bearing
Tribology
Ultra low torque bearing
Precision work technology
High precision bearing
D tooth surface correction technology

Coating technology
Torque management system

Seal design technology
HUB
Precision work technology
Solenoid valve technology
FC system
Heat treatment technology
Injection molding technology
Ball screw technology

Press technology
Forging design technology
EPS system
Torque control technology
Angular control technology
HMI cooperative control

New business model
Challenges in new businesses andnew fields
Strengthening existing businesses

etc.
Materials/heat treatment technology

3

Enriching R&D and business development, including group companies, and integrating them into a technology platform
Providing “Only One” solutions to customers and society2. JTEKT Group 2030 Vision│Transformation into a Solution Provider｜Road map
First medium-term

Second medium-term

Completed to break out froma deficit-ridden constitution
For further growth, businessrestructuring and structuralreforms in Europe andAmerica will continue

Strengthen Ⅰ

Third medium-term

Challenge for II

Focusing to increase added value andstructural reforms of Europe andAmerica. Improve ROE andprofitability

Expand II

Three-year period
for enhancing ourcorporate structure
2021

2023

2024

and strengthen profitability

Further growth centered on
the expansion of new
businesses and solutions

Secure surplus capacity and shift
resources to solution creation

Growth of existing
businesses and developmentof new businesses

JTEKT Group
2030 Vision

2027

Reaping results andleaping forward

2030

2026

Leap to be a solution provider creating the future of mobility
society through manufacturing and manufacturing equipment
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2. JTEKT Group 2030 Vision│Target value

FY2023 result

Efficiencyoriented
management

FY20262030 Vision（Second medium-term）

ROE

5.5％

7-8％

10％

PBR

x 0.6

x 1.0

x 1.5

Business Profit Ratio

3.9%

5-6%

upper 8%

1.9 trillion yen

Revenue>

2 trillion yen>

over 2 trillion yen

People and Site
1stManagement

Employee engagement

-69

-55

-40

Management
for earth

CO2 reduction goal

-32%

-45%

-60%

(eNPS * )From FY2013

Exchange rate: 1USD=145yen, *eNPS：Employee Net Promoter Score ; non-consolidated base
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2. JTEKT Group 2030 Vision│Target value–Why eNPS-

Why eNPS◼ Tendencies of employees with high eNPS
✓ Feel attached to the company’s brand✓ Enthusiastically strive to make better proposals to customers✓ Understand and empathize with the company’s vision✓ Actively communicate with colleagues and become a driving force for generating
innovative ideas.
◼ Increase in employees with high eNPS positively impacts the entire workplace◼ Products and services created by companies with high eNPS lead to increased customer
satisfaction, which can result in continued business partnerships and repurchase
Improvement of eNPS (Improvement of employee engagement) is the key to transforming into a solution
provider
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3. Growth strategy, Priority measures

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3. Growth strategy, Priority measures｜Overall view

Aiming to improve ROE and profitability, we are strengthening our management
and business structure for the future expansion of solutions

Strengthening solution creativity
Establishment of solution co-creation
center• Combining core technologies andcompetencies across the company, we
implement rapid solution development.

• Building a technology platform

Strengthening Competitiveness
Building a business strategy aimed at
maximizing profitability• Embodying action plans to achieve the2030 Vision and the expansion of solution
creation• Focused on a strategy aimed at improving
ROE and profit margin, rather thanincreasing sales

Global Restructuring

Strengthening Indian sites• Promoting India as global site

• Structural reforms in Europe andAmerica• Promoting the optimal allocation ofdevelopment and production sites globally.

Improving the digital
infrastructure for stronger business• Promoting digital monozukuri and renewing
the engineering chain into one-stop chain• Reforming the information infrastructure
and promoting digital utilization across thecompany, including management andoperations
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3. Growth strategy, Priority measures｜Overall view

Aiming to improve ROE and profitability, we are strengthening our management
and business structure for the future expansion of solutions

Strengthening solution creativity
Establishment of solution co-creation
center• Combining core technologies andcompetencies across the company, we
implement rapid solution development.

• Building a technology platform

Strengthening Competitiveness
Building a business strategy aimed at
maximizing profitability• Embodying action plans to achieve the2030 Vision and the expansion of solution
creation• Focused on a strategy aimed at improving
ROE and profit margin, rather thanincreasing sales

Global Restructuring

Strengthening Indian sites• Promoting India as global site

• Structural reforms in Europe andAmerica• Promoting the optimal allocation ofdevelopment and production sites globally.

Improving the digital
infrastructure for stronger business• Promoting digital monozukuri and renewing
the engineering chain into one-stop chain• Reforming the information infrastructure
and promoting digital utilization across thecompany, including management andoperations
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3. Growth strategy, Priority measures｜Strengthening the creativity of solution｜FootholdCo-creating solutions in agile with various stakeholders
New customers

Consultation on issues from existing customers, business units, factories, and functions

Cocreate

Co-create

End user, car maker etc.

Solution co-create center

Automotive business unit

Promote consideration agilely
Planning

DesignMassproduction
planning

Preparation
for mass
production

Solution

Sales

Prototypemanufactu
ring

Customers, business units,
factories and functions

Industrial and bearing
business unit
Machine Tools & Manufacturing
Systems business unit

Aftermarket business unit
Factories, functions

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3. Growth strategy, Priority measures｜Strengthening the creativity of solution｜FootholdCo-creating solutions in agile with various stakeholders
Customers

New customers

Consultation on issues from existing customers, business units, factories, and functions【A-Lab】

Co-Unearthing needs from
Co-createcreate customers’ POV

End user, car maker etc.

Solution co-create center

Automotive business unit

Promote consideration agilely
Planning

Mass
production
planning

Preparation
for mass
production

Solution

Sales

Prototypemanufactu
Designring【Flight controller for drone】
Combination of core technologies
and competencies

Customers, business units,
factories and functions

Industrial and bearing
business unit
Machine Tools & Manufacturing
Systems business unit

Aftermarket business unit

Developing a business model that goesbeyond products sales

E-Commerce

Factories, functions

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3. Growth strategy, Priority measures｜Strengthening the solution creation｜Current cases
Unearthing needs from customers’
POV（Internal activity）

Combination of core technologies andcompetencies
Flight controller for drone− Conducting team activities to capture invisible
needs that customers, without being fixated on
JTEKT’s seeds.

− Using core technologies and competencies inelectronic components and control for EPS*, we
expand from land to air, creating new value− Rolling out this activity across the entire
company and update the value provided tocustomers− Combining with Libuddy to achieve both
responsiveness and stability, realizing safer andmore precise flight

Team activity

Developing a business model that goesbeyond products sales

Co-create with end
user and drone
maker and so on(American Subsidiary)− Operating an e-commerce service that handles
PLCs and related products, primarily in North
America− Our strength is a lineup and after-service that
includes our core products as well as those ofother companies, all based on user needs− Achieving high profitability and high growth

Hamburger
strategy＋
E-CommerceVisitcustomers※1 EPS：Electric Power Steering、 ※2 PLC：Programmable Logic Controller、※3 HMI：Human Machine Interface

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3. Growth strategy, Priority measures｜Strengthening the creativity of solution｜Current cases
Business model of Automation Direct
・Identify target customers, create acommunity with a specialized team, andexplore potential needs

Identify target customers

Create a community andexplore potential needs

・With PLC and HMI as core products, we
expand peripheral devices and offer sameday shipping to seize business opportunities

Hamburger strategy
・Core product (hamburger)
・Peripheral device (side menu)

・Sales expansion with E-commerce・Same-day shipping with
automated warehouses

In a niche marketplace, achieving high profitability by combining core products that reflect the real voicesof customers with peripheral products
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3. Growth strategy, Priority measures｜Overall view

Aiming to improve ROE and profitability, we are strengthening our management
and business structure for the future expansion of solutions

Strengthening solution creativity
Establishment of solution co-creation
center• Combining core technologies andcompetencies across the company, we
implement rapid solution development.

• Building a technology platform

Strengthening Competitiveness
Building a business strategy aimed at
maximizing profitability• Embodying action plans to achieve the2030 Vision and the expansion of solution
creation• Focused on a strategy aimed at improving
ROE and profit margin, rather thanincreasing sales

Global Restructuring

Strengthening Indian sites• Promoting India as global site

• Structural reforms in Europe andAmerica• Promoting the optimal allocation ofdevelopment and production sites globally.

Improving the digital
infrastructure for stronger business• Promoting digital monozukuri and renewing
the engineering chain into one-stop chain• Reforming the information infrastructure
and promoting digital utilization across thecompany, including management andoperations
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3. Growth strategy, Priority measures｜Strengthening Competitiveness｜The Vision for Each Business
Automotive

Industrial and Bearing

To achieve even more comfortable cars in the newmobility domain,

To achieve CN and CE for a sustainable society,

Providing UX value centered on ‘vehicle
dynamics performance’ throughco-development with vehicles

Connecting core technologies andcompetencies with rotational support
products to enhance the value of ourcustomers’ products.

Machine Tools & Manufacturing Systems

Aftermarket

For better manufacturing,
Maximizing customer retention through solution
proposals that integrate group seeds

To support our customers’ sustainable life cycles forthe products,

Contributing to the improvement ofasset efficiency on-site and the enhancement of
product added value

creating new values from the customer’s perspective
to meet the needs of a recycling society

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3. Growth strategy, Priority measures｜Strengthening Competitiveness｜

Automotive business unit

Strengthening profitability with high-value-added products and becoming a system supplierthat achieves the ideal UX through the integration of software and hardware
Strengthen profitability(Billion of yen) Advanced foothold for third
medium-term
2,000
Revenue

Providing System Valueto New Domains

Basic strategy, Main activity
Second medium-term periodBusiness profit(%)◼ Building profitability through the introduction of
next-generation products by enhancing productcompetitiveness and productivity (value-added enhancement)

1,500

SbW

◼ Creating capacity through the digital standardization ofbusiness processes, digital transformation (DX), and AI

Pairdriver®

◼ Development and provision of products/values in new areas that contribute to ‘vehicle
dynamics focused on turning/driving,’ ‘cabin space,’ and ‘carbon neutrality

1,000－ Market launch of SbW※1、Pairdriver®
500

5.5%
3.3%

0

6.5%

3.3%

Foothold towards 2030

◼ Becoming a solution provider for new mobility areas(such as Software-Defined Vehicles, SDVs ※2)－Establish SbW as the de facto standard, Continuous advancement of Pairdriver

FY2023

FY2024FY2025

FY2026

Second medium-term

FY2030Third medium-term－Initiating transformation to provide value as a system supplier by
breaking free from the frameworks of ‘steering’ ‘driveline’ and ‘HUB’
and through co-creation activities with customers and group companies※1 SbW: Steer by Wire、 ※2 SDV: Software Defined Vehicle

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3. Growth strategy, Priority measures｜Strengthening Competitiveness｜

Industrial and Bearing business unit

Securing current profitability and expanding the industrial and commercial sectors bystrengthening core technologies and competencies
Structural reforms in
Europe and America(Billion of yen)
500

Shifting business structure to Industrial and Aftermarket

Revenue

2023

2030

◼ Expansion of the sales ratio of Industrial products and Aftermarket
Sales ratio by industry− Expanding market share in growth areas such as semiconductors
with high-value-added bearings through advancements in material and heat
treatment technologies− Creating capacity by using external resources from partner companies andshifting to new products and services that pursue customer satisfaction

300

200

7.5%

0

Aftermarket
Automotive Industrial◼ Structural reforms globally
ー Profitability improvement by structural reforms in
Europe and America

Business profit(%)

400

100

Basic strategy, Main activity
Second medium-term period

3.5%

FY2023

8.5%

Foothold towards 2030

4.0%

FY2024◼ Strengthening competitiveness in the automotive sector− Proposing high-value-added products by shortening development lead timethrough digital utilization◼ Talent management by connecting bearing technology
and competencies of other businesses and groupcompanies to provide solutions
FY2025

FY2026

Second medium-term

FY2030Third medium-term◼ Contribution to environment issues (CN・CE)− Developing products and providing services aimed at reducing
customers’ lifecycle costs

Contributing to CN
and CE by connecting
technologies

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3. Growth strategy, Priority measures｜Strengthening Competitiveness｜

Machine Tools & Manufacturing Systems business unit

Maximizing customer retention through the provision of mechatronic control andsolutions with collective efforts throughout JTEKT Group(Billion of yen)

Building a foundation
for co-creation

300

Revenue

New service andbusiness modelBusiness Profit(%)

Basic strategy, Main activity
Second medium-term period◼ Rebuilding Product Competitiveness− Review of product lineup(Enhancing large-scale models in the grinding area andstrengthening battery equipment for BEVs）

Product Lineup
Group
Collaboration− Establishing one-stop digitalization and a lean production system

200◼ Group collaboration and value chain enhancement− Standardizing the group-wide platform for grinding operations

13.0%
100

9.6%

11.0%

9.4%

− Strengthening the foundation of after-sales service centered on
customer satisfaction

Foothold towards 2030

End-to-end
digitalization

Platform
Customer◼ Maximizing customer retention− Connecting customers’ machines with JTEKT via
communication, and introducing services utilizing digitaland AI technologies for predictive maintenance and more

◼ Expanding business model (Co-create with ADC*)
0− Considering to expand E-commerce Services to Other Regions

FY2023

FY2024FY2025

FY2026

Second medium-term

FY2030Third medium-term◼ Creating engineering solution− Strengthening collaboration with the Toyota Groupin the battery equipment sector※ Automation Direct Corporation (subsidiary in America)

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3. Growth strategy, Priority measures｜Strengthening Competitiveness｜

Aftermarket business unit

Maintaining growth trends through the diversification of product offerings, regional expansion,and strengthening supply capabilities, while developing a circular business model
Expansion of Products
and Regions(Billion of yen)

◼ Expansion of product lineup

Business Profit(%)− Expanding the commercialization of
automotive repair parts(Proposing products that are easy forcustomers to purchase and easy toreplace)− Expanding collaboration with partners

15.0%

14.0%

◼ Expansion into untapped regions

Expansion of the sales network

Revenue

Basic strategy, Main activity
Second medium-term period

Expansion of CE
Activities

e-commerce
Challenging
for new needs
Expansion into
condition diagnosis
emerging markets
and sellingand sales channels
experience business
Expansion of commercial
deployment
Selling things Expanding product lineup

Selling experience− Expanding an accessible service network for customers (Including new agent
development)− Developing emerging markets in Africa and Central Asia

Foothold towards 2030
◼ BtoC business, promoting DX, strengthening technicalservice0◼ Maximizing Group Competence and accelerating
market introduction
FY2023

FY2024FY2025

FY2026

Second medium-term

FY2030Third medium-term※Aftermarket sales revenue figures are included within each business unit

Recyclingsociety◼ Expanding business to contribute to a CE

◼ Contributing to environmentally friendly e-Mobility

Repair andregeneration
Solutionpartner
supporting thelifecycle

Reuse

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3. Growth strategy, Priority measures｜Strengthening Competitiveness｜

New business development

Transitioning business development items under the First Medium-Term plan period tothe commercialization
Core technology andcompetencies

Electrical Power
Storage

Knowledge on Lithium-ion battery
manufacturing equipment
High heat resistance and ultralong lifespan throughcompatibility control of energy
storage materials
Construction methods andproduction equipment
development technology

Gear

Synergy with Machine tools andBearings
Advanced analytical technology

Active life

Robotics technology that reduces
human’s burden（Electric assist and control
technology）

Current
activities

Products and services
sample◆◆Libuddy, Applied
Products

Market launch of
SbW backup power
supplyCommencement ofmass production in
the Industrial sector

Second mediumterm◆◆

Expansion to backup
power supply forautonomous Driving

～2030
◆

(over Lv2, start mass
production)◆

Improving battery LCA*

◆

◆

◆

Integrated
Bearing Gear◆◆

J-PAS fleairy（assist suit）◆

Commencement ofmass production ofgears for robots
Mass production for
nursing facilities has
been started
Entering the
agricultural market

◆

◆

◆

Product improvement

High value-addedtransformation fromunique gear components
to units/systems◆

Expansion of the SbW
MarketExpanding to mobility
business
Promotion of renewableenergy and hydrogen
Promoting carbon
neutral for plants
Transforming into asolution business as acomprehensive gear
builder

Entry and businessexpansion into the home ◆ Providing total solutions
for social systems
care and civil engineering
markets
Equipment with personalized
and new assist features(Sense of Assistance and (Work and physical differences)
Comfort)◆ Support for a comfortable andefficient production environment*LCA：Life Cycle Assessment

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3. Growth strategy, Priority measures｜Overall view

Aiming to improve ROE and profitability, we are strengthening our management
and business structure for the future expansion of solutions

Strengthening solution creativity
Establishment of solution co-creation
center• Combining core technologies andcompetencies across the company, we
implement rapid solution development.

• Building a technology platform

Strengthening Competitiveness
Building a business strategy aimed at
maximizing profitability• Embodying action plans to achieve the2030 Vision and the expansion of solution
creation• Focused on a strategy aimed at improving
ROE and profit margin, rather thanincreasing sales

Global Restructuring

Strengthening Indian sites• Promoting India as global site

• Structural reforms in Europe andAmerica• Promoting the optimal allocation ofdevelopment and production sites globally.

Improving the digital
infrastructure for stronger business• Promoting digital monozukuri and renewing
the engineering chain into one-stop chain• Reforming the information infrastructure
and promoting digital utilization across thecompany, including management andoperations
Copyright (C)：JTEKT Corporation30

3. Growth strategy, Priority measures｜Strengthening Competitiveness｜

Digital Monodukuri

Enhancing decision-making and improved operational efficiency through theestablishment of one-stop digital distribution Platform
Management decision

Manag
ement

Engineering chain

Sales
営業
Business・Function

企画
Planning

Everything is visible, connected, andusable through data

Development
開発【Digital festival】
設計
DesignDigital Transformation Production
生産準備
for All
preparation
Supply chain

Back
officeConnecting digitally with a focus on theengineering chain

Human
resource
人事

Procurement
調達

Production
生産計画
planning

Finance
経理

Achieving seamless data-driven
management
Manufacturing utilizing digital
Manufactu
生産
ring

GeneralAffairs
総務

Logistic
物流

Sales
販売
After
ｱﾌﾀｰｻｰﾋﾞｽ
service

Legal
法務
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3. Growth strategy, Priority measures｜Overall view

Aiming to improve ROE and profitability, we are strengthening our management
and business structure for the future expansion of solutions

Strengthening solution creativity
Establishment of solution co-creation
center• Combining core technologies andcompetencies across the company, we
implement rapid solution development.

• Building a technology platform

Strengthening Competitiveness
Building a business strategy aimed at
maximizing profitability• Embodying action plans to achieve the2030 Vision and the expansion of solution
creation• Focused on a strategy aimed at improving
ROE and profit margin, rather thanincreasing sales

Global Restructuring

Strengthening Indian sites• Promoting India as global site

• Structural reforms in Europe andAmerica• Promoting the optimal allocation ofdevelopment and production sites globally.

Improving the digital
infrastructure for stronger business• Promoting digital monozukuri and renewing
the engineering chain into one-stop chain• Reforming the information infrastructure
and promoting digital utilization across thecompany, including management andoperations
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3. Growth strategy, Priority measures｜Restructuring the global structure
Outline of global strategy

Strategy directions for main regions

India▲ Europe▲➡ ● North■ China, ASEAN● India

America■ SouthAmerica

Positioning by each region●：Growth ■：Stabilization of management▲：Improved profitability

Allocating resources based on its growth, we aim to maintain a high market
share in steering and expand our share in driveshaft. Strengthen the machinery
division and promote its utilization as a global site.

North Adapt to the manufacturing environments of various countries and promote theAmerica transition to a global production system utilizing Mexico, Japan, India, andother locations, along with the implementation of optimal equipment.
Steadily launch new products such as BS-EPS and aim for a transition to growth
regions

China

Promote the restructuring of the business and customer portfolio by expanding
sales to targeted Chinese automobile manufacturers and strengthening thecompetitiveness of ball bearings, which are in increasing demand due to theshift to BEVs

competitiveness through productivity improvements, including
ASEAN Enhance
automation and labor-saving measures, and a fundamental review of the supply
chain. And we aim to expand into the Chinese automotive makers and promote
our range of products for pickup trucks

to the structural reforms implemented so far, we expect our performance
Europe Due
to bottom out in fiscal year 2025. We plan to further advance the restructuring
and integration of our business and formulate a plan for achieving profitability
in Europe within this fiscal year

※ BS-EPS: Ball Screw Electric Power Steering

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4. Strengthen management foundation

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4. Strengthen management foundation｜Overview
Continuous enhancement of corporate value

Solution provider
Solution co-create center ・ Technology platformkey
initiatives

Circular Economy
Compliance

Promoting Carbon Neutral

Optimal capital allocation(Cash allocation)

People and Site 1st Management

Streamlining
invested capital×

Financial
capitalDigital festival ・ Digital Monozukuri
manag
ement
capitalHumancapital× Intellectual× Social capital ×
capitalNaturalcapital× manufactur
ed capital

Improvingprofitability

Reviewing theequity ratio

Challenges develop people, and people create new solutions
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4. Strengthen management foundation｜People and Site 1st Management
Challenges develop people, and people create new solutions【Company】

Human resources
strategy
Recruitment
Human resource development
Optimal placement
Treatment【Employee】

Respect for
employees’ will

Career development

Achievement ofcompany goals
....

WILL
Self-actualized
Contribution
Autonomy....

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4. Strengthen management foundation｜People and Site 1st Management

Creating a vibrant workplace
Developing individuals who canachieve self-actualization－ Compassionate Management Training－ Frequent communication between
supervisors and subordinates－ Visualizing each individual’s will
－ Developing talent through desired work

On the job training

JTEKT Technicaltraining center～Yes for All, by All～

Building a structure that enables
employees to do what you want

Creating a workplace that enjoys
challenges－ Open and free discussions leading to inventionof new path and solutions－ A culture that encourages challenges－ Improving operational efficiency throughdigital utilization－ Creating extra capacity throughwaste reduction

Improvement activities
with full participation－ Ensuring psychological safety－ A culture of caring fellows andhelping each other・Stop, Reduce, Change
・Yes for All , By All！

Praise patrol

Copyright (C)：JTEKT Corporation37

4. Strengthen management foundation｜ Promoting carbon neutral｜Global CO2 emissions results and future goal

Move All JTEKT FY25 goal forward andaccelerate activities globally towards achieving the FY30 goal
CO2 emissions （K t-CO2）
1,000
Base
▲35％⇒▲45%(Raising the goal)

800

▲100%

：▲60%
※SBT Certified(vs FY21 ▲42.3％)

600

400

200

0

2013
2020
Based Fiscal year result

Carbon Neutral
2021
result2022
result2023
result

2024
plan

2025
goal

・・・

2030
goal

・・・

2035
goal

Carbon Neutral
including supplier
・・・

2050
goal

※SBT(Science Based Targets) Initiative: An international initiative jointly operated by the environmental NGO CDP, the United Nations Global Compact, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF).
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4. Strengthen management foundation｜ Promoting carbon neutral｜Efforts to reduce global CO2 emissions

Contribution to carbon neutral by use of proactive renewable energy and the integrationof competencies
Promoting renewable energy projects globally
Renewable energy adoption 100%

100

※1

Previous goal75

New goal

35%

0

7%
2023 result

Machine Tool

Raising the goal

25
2025goal

2030 goal－ Equipment design
technology(Simple, Slim and Compact)

20%

10%

Competency

Achieving carbon neutral

※1

60%

50

Development and validation combining competencies

2035 goal－ System control
technology

Kariya CN lab：Generates electricity andhydrogen from renewable energy
Solar
power
make

Electronic

Controlequipment(PLC)

Promoting onsite and off-site PPA/VPPA※2

Hydrogen

stock
make

use

New BusinessSolar carport

Fence solar

Wind power－ New applications ofcapacitors

Libuddy®＆Li batteryWater electrolysisHydrogen tankequipment

stock※1：Previous goal was set in 2022, New goal was set in this year (First publication)※2：PPA：Power Purchase Agreement、VPPA：Virtual Power Purchase Agreement
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4. Strengthen management foundation｜ Promoting carbon neutral｜Status of Response to Scope 3

To provide green products which meet the increasing environmental demands, reduce
CO₂ emissions during product use and from raw materials
Calculate Scope 3 emissions and add new environmental
value to the products.
Breakdown of Scope3 (at 2021)

Provide green products to customers
Car maker

Cat.１(Raw materials)

Auto-parts maker
Industrial

Cat.1
Raw materials
37.8%

Cat.11
When productIs used46.4%－ Switching to recycled materials－ Miniaturization and Weight
reduction－ Simplification
Cat.11(When product is used)

Construction－ Improving fuel economy

Machine Tool, Robot－ Low torque technology－ Miniaturization and Weight
reduction

Comparing to sum of Cat1 and 11 of 2021, 25% reduced by the year 2030 (SBT certified)
Develop a new product roadmap with added environmental value and provide only one products
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4. Strengthen management foundation｜ Decomposition of processes into KPIs and specific actions for enhancing corporate value
Enhancing corporate vale
Improving ROE

Non-financial activities

Constituent
Elements

Utilization, improvement, and optimization of thesix capitals excl. financial capital.

Improving ROIC

- manufactured, intellectual, human, social and relationship,and natural capitals-

Improving fixed
asset turnover ratio“Each employee promotes as a stakeholder.”Specific
ActionFinancial Leverage

Streamlining of invested
capitalImproving profitability

Process
KPI※ Actions in the second medium-term

Fair pricing✔ Value addition through functional integration✔ Integration of gear and automotive core technologiesSbW、ADAS -Cost reduction

Improving inventory
turnover✔ Investment decisionmaking/management with capital
cost awareness - Investment
decision-making based on DCF ✔ Reduction of investment unit cost
✔ Streamlining non-core/unprofitablebusinesses✔ Establishing a system to avoid
accumulating unnecessary assets✔ Enhancing cost competitiveness of existingproducts – next generation EPS ✔ Eliminating policy-held shares✔ Phasing out unprofitable product, strengthening
on-site VAVE✔ Improving factory productivity, manufacturing reformand operating cost reduction✔ Effective utilization of partner companies and outsourcing

Review of the equity ratio
Optimization of Accounts
Receivable and Accounts
Payable Turnover Ratios✔ Elimination of excess
inventory✔ Elimination of
overdue receivables✔ Reduction in the
Number of Models✔ Site optimization- Strengthening large and complex grinding machines, review of
product lineup ✔ Structural reforms in Western regions✔ Strengthening growth areas (BEV/HEV, semiconductors, etc.)
and aftermarket bearings✔ Review of dividends- DOE 2-3% -✔ Central managementof aftermarket inventory✔ Share Buyback

Optimal capital
structure✔ Advocacy of Growth
Strategy

Review of the business portfolio✔ Revisiting regional and customer strategies – Europe, China ✔ Revisiting product strategy

Enhancement ofshareholder returns✔ Sensing technology – Deployment of predictive diagnostic systems and repair/reconditioning
business（Reman project）✔ Support for new vehicle electronic platforms- Establishing a software development framework,
developing Pairdriver ✔ Exploring the expansion of E-commerce services to other regions and promoting 3D digitalization✔ Enhancement of IR
Activities- “Increased opportunities
for individuals overseas-✔ Strengthening aftermarket businessTransformation to a solution business
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4. Strengthen management foundation｜ Cash allocation, Shareholder return polic

Advance transformation to a new growth stage through the growth of existing
businesses and the nurturing of new ventures
Cash inCash out

Generating funds from business activities (Before deduction of development costs and structural reform expenses)

Future growth investments

Investment for the continuation and maintenance of existing businesses

First medium-term (2021-2023)

Sale of cross-shareholdings

Structural reforms

Second medium-term (2024-2026)

Financial arrangements

Shareholder return（Unit: billion of yen）

Loan payback

Third medium-term (2027-2030)

110

55
430
32

Cash in

550

296
5
68

38

Cash out■ Three years of establishing profitability andstrengthening the financial constitution⇒ Rebuilding a healthy and stable financial structure

Future growth investments：Initiating Strategic expenses and investments innew businesses (sowing seeds)
Investment in existing businesses：Project investment and infrastructuredevelopment (Safety, Quality and Welfare benefits)
Structural reforms：Promoting structural reforms in Western regions andcorporate mergers/consolidations
Policy-held shares：Promoting reduction through continuous dialogue with eachcompany
Shareholder return：Dividend Payout Ratio of 30% or More, or DOE (Dividend on
Equity) of 1% or More, Whichever is Higher

Result of shareholder return:DOE 1.5% / period average

40

Cash in20~30

345
55~65

100

Cash out

Cash inCash out■ Growth of existing businesses and developmentof new businesses⇒ Transformation to a new stage of growth■ Reaping results and leaping forward⇒ Expansion of solution business and realization ofeffects

Future growth investments ：Preparation for solution businessdevelopment, nurturing new businesses, organizing various platforms, andfull-scale promotion of digital transformation (Human investment, CN, DX etc.)
Investment in existing businesses：Project investment in focus products andregions
Structural reforms：Further structural reforms in Western regions
Policy-held shares：Achieving Zero in the Second Medium-Term
Shareholder return：Stable dividends and share buybacks targeting a DOE
of 2-3%Future growth investments：Expansion of the solution business and further
strengthening and expansion of non-financial capital (enhanced investment
in people, acceleration of carbon neutrality, and completion of DX)
Investment in existing businesses：Focusing on high-profit and high-valueadded projects with an emphasis on capital efficiency (Rationalization will bepromoted within the scope of depreciation)
Shareholder return：Redesigning policies for further expansion of returns
based on the results of the second medium-term Management Plan

Revision of shareholder return policy:
DOE 2-3% / guideline

Expand in line with growth
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Joint Technology

Thank
You

Yes for All, by All !
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【Note on forward-looking statements】
Please be aware that these statements involve both risks and uncertainties andthat there is the possibility of different outcomes as actual achievement andbusiness performance.
Copyright (C)：JTEKT Corporation