CSR Report 2006

CSR Report
2006
Corporate Social Responsibility Report

NTN Corporation● For further information about this CSR report contact:

1-3-17 Kyomachibori, Nishi-ku, Osaka, 550-0003 Japan
Phone: 81-6-6449-3561
Fax: 81-6-6449-2592
E-mail: csr_report@osa.ntn.co.jp

PRINTED WITH

SOY INK

TMThis CSR Report was printed with soy-based ink on 100% recycled paper.
Printed in Japan (2006.09.2000)

NTN Corporation

Corporate Social Responsibility Department
Environmental Management Department

NTN Corporation

About this Edition

Contents

At NTN, we believe it is important for a corporation to takethe requests of its stakeholders seriously and to improve how
it works with society and its global activities.
●The change from an “Environmental Action Report” toa “CSR Report”
NTN has been issuing “Environmental Action Reports” since
1999, but starting this fiscal year, we will report NTN’s overall
efforts relating to CSR (Corporate Social Responsibility).
This report is broadly divided into three sections:“Philosophy and Structure”, “Social Report”, and“Environmental Report”. In “Philosophy and Structure”, we report the overall picture of NTN’s management structure. In
the “Social Report”, we report our activities with respect tostakeholders such as customers, suppliers, employees, andlocal communities. In the “Environmental Report”, we reportin detail on the activities and results of all NTN departments.
These activities are based on the theme “coexistence with theglobal environment”.
We at NTN strive to create a “CSR Report” that is complete
and easy to read. It would be most appreciated if you would
share with us your honest opinions by filling out the questionnaire at the end of the report. Thank you for your cooperation.

Corporate Data

Corporate Data

1

Locations Mentioned in this Report2

Corporate NameNTN Corporation

Message from the President

4

Head Office

Philosophy and Structure

6

1-3-17 Kyomachibori, Nishi-ku, Osaka, 550-0003
JapanAwards Received in FY 200510

Phone: 81-6-6443-5001 (switchboard)

Working with Individuals and Society(As of March 31, 2006)

Date founded

March 1918

Date incorporated

March 1934

Bearings

For Customers

12

President

Yasunobu Suzuki

For Suppliers

16

Number of Employees

5,442 (non-consolidated)

For Employees

18

For Community

22

Working for the Environment
NTN Environmental Policy

26

Environmental Conservation Structure andRelated Initiatives

27

Environmental Targets and Results

28

Environmental Management

30

Conserving the Global Environment

34

Creating a Recycling Society

36

What Our Environmental Managers Have To Say

39

Environmental Initiatives at NTN Sites

42

Results of the NTN Environmental Action Report
2005 Questionnaire

51

14,631 (consolidated)
Fiscal term

March 31st

Capital￥39.6 billion

Net Sales￥434.8 billion (consolidated)

Stock

Listed on the first section of the Tokyo Stock
Exchange and the Osaka Securities Exchange

Constant Velocity Joints

Precision Equipment and other■ Net Sales and Income(Consolidated)■ Total Assets and Shareholders’Equity (Consolidated)billions of yen

600billions of yen

500■ Sales by Business
Segment (Consolidated)
Precisionequipment 6.2%

50

562

Asia and others 13.4%

463

467

388

400

460

Net Sales

300●Guidelines used for reference
Ministry of the Environment “Environmental Report Guideline (2003 edition)”

300

28

200
139 135

143

158

40

33
30

25
21

21

200

GRI (Global Reporting Initiative) “Sustainability Reporting Guideline 2002”

20
16

183
100

100

●Period of the Report
April 2005 to March 2006 (with some exception)

33

324

400

38

357

343

10

8

Operating income / Ordinary income

435

517
500

■ Sales by Region(Consolidated)

Constant
Velocity
Joints30.2%

Europe15.4%
Bearings
63.6%

Total ￥435 billion

Japan
45.4%

North America
25.8%

Total ￥435 billion

302001 2002 2003 2004 2005 (FY)

Total assets
Shareholders’ equity002001 2002 2003 2004 2005 (FY)Net Sales
Operating income
Ordinary income1About this Edition

Contents

At NTN, we believe it is important for a corporation to takethe requests of its stakeholders seriously and to improve how
it works with society and its global activities.
●The change from an “Environmental Action Report” toa “CSR Report”
NTN has been issuing “Environmental Action Reports” since
1999, but starting this fiscal year, we will report NTN’s overall
efforts relating to CSR (Corporate Social Responsibility).
This report is broadly divided into three sections:“Philosophy and Structure”, “Social Report”, and“Environmental Report”. In “Philosophy and Structure”, we report the overall picture of NTN’s management structure. In
the “Social Report”, we report our activities with respect tostakeholders such as customers, suppliers, employees, andlocal communities. In the “Environmental Report”, we reportin detail on the activities and results of all NTN departments.
These activities are based on the theme “coexistence with theglobal environment”.
We at NTN strive to create a “CSR Report” that is complete
and easy to read. It would be most appreciated if you would
share with us your honest opinions by filling out the questionnaire at the end of the report. Thank you for your cooperation.

Corporate Data

Corporate Data

1

Locations Mentioned in this Report2

Corporate NameNTN Corporation

Message from the President

4

Head Office

Philosophy and Structure

6

1-3-17 Kyomachibori, Nishi-ku, Osaka, 550-0003
JapanAwards Received in FY 200510

Phone: 81-6-6443-5001 (switchboard)

Working with Individuals and Society(As of March 31, 2006)

Date founded

March 1918

Date incorporated

March 1934

Bearings

For Customers

12

President

Yasunobu Suzuki

For Suppliers

16

Number of Employees

5,442 (non-consolidated)

For Employees

18

For Community

22

Working for the Environment
NTN Environmental Policy

26

Environmental Conservation Structure andRelated Initiatives

27

Environmental Targets and Results

28

Environmental Management

30

Conserving the Global Environment

34

Creating a Recycling Society

36

What Our Environmental Managers Have To Say

39

Environmental Initiatives at NTN Sites

42

Results of the NTN Environmental Action Report
2005 Questionnaire

51

14,631 (consolidated)
Fiscal term

March 31st

Capital￥39.6 billion

Net Sales￥434.8 billion (consolidated)

Stock

Listed on the first section of the Tokyo Stock
Exchange and the Osaka Securities Exchange

Constant Velocity Joints

Precision Equipment and other■ Net Sales and Income(Consolidated)■ Total Assets and Shareholders’Equity (Consolidated)billions of yen

600billions of yen

500■ Sales by Business
Segment (Consolidated)
Precisionequipment 6.2%

50

562

Asia and others 13.4%

463

467

388

400

460

Net Sales

300●Guidelines used for reference
Ministry of the Environment “Environmental Report Guideline (2003 edition)”

300

28

200
139 135

143

158

40

33
30

25
21

21

200

GRI (Global Reporting Initiative) “Sustainability Reporting Guideline 2002”

20
16

183
100

100

●Period of the Report
April 2005 to March 2006 (with some exception)

33

324

400

38

357

343

10

8

Operating income / Ordinary income

435

517
500

■ Sales by Region(Consolidated)

Constant
Velocity
Joints30.2%

Europe15.4%
Bearings
63.6%

Total ￥435 billion

Japan
45.4%

North America
25.8%

Total ￥435 billion

302001 2002 2003 2004 2005 (FY)

Total assets
Shareholders’ equity002001 2002 2003 2004 2005 (FY)Net Sales
Operating income
Ordinary income1Locations Mentioned in this Report

Nagano WorksNTN Powder Metal CorporationNTN Kamiina Corporation

NTN Mie Corporation

NTN Bearing Service Co., Ltd.

NTN Engineering Plastics Corporation

Kyoei NTN Co., Ltd.

Hikari Seiki Industry Co., Ltd.

NTN Omaezaki Corporation

NTN Casting Corporation

Iwata WorksOkayama Works

Kuwana Works

Takarazuka WorksNTN Mikumo Co., Ltd.

NTN Kongo Corporation

Head Office
NTN-Bower Corporation Macomb Plant
NTK Precision Axle Corporation
American NTN Bearing Manufacturing Corporation Elgin Plant
American NTN Bearing Manufacturing Corporation Schiller Park Plant
NTN Bearing Corporation of America ･NTN USA Corporation

NTN Transmissions Europe

NTN Bearing Corporation of Canada Canada Plant

NTN France S.A.

NTN Bearing Corporation of Canada

NTN Bearing (UK) Ltd.

NTN-Bower Corporation Hamilton Plant

NTN Walzlager (Europa) G.m.b.H.

NTN-BCA Corporation Lititz Plant

NTN Kugellagerfabrik (Deutschland) G.m.b.H. Mettman Plant

NTN Driveshaft, Inc.

ComplianceCorporate Governance
Stakeholder

Through our daily business activities, we strive tocreate value in various ways and to attain asustainable society.

NTN Korea Co., Ltd.
Shanghai NTN Corporation
Changzhou NTN-Guangyang Corporation
NTN-NIDEC (Zhejiang) Corporation
Guangzhou NTN-Yulon Drivetrain Co., Ltd.
NTN China Ltd.

NTN Sudamericana S. A.

NTN Manufacturing (Thailand) Co., Ltd.
NTN Bearing-Thailand Co., Ltd.
NTN Bearing-Singapore (PTE) Ltd.
NTN Bearing-Malaysia SDN. BHD.

Plant
Sales

2●NTN Corporate Social Responsibility Report 2006

NTN Corporate Social Responsibility Report 20063

Locations Mentioned in this Report

Nagano WorksNTN Powder Metal CorporationNTN Kamiina Corporation

NTN Mie Corporation

NTN Bearing Service Co., Ltd.

NTN Engineering Plastics Corporation

Kyoei NTN Co., Ltd.

Hikari Seiki Industry Co., Ltd.

NTN Omaezaki Corporation

NTN Casting Corporation

Iwata WorksOkayama Works

Kuwana Works

Takarazuka WorksNTN Mikumo Co., Ltd.

NTN Kongo Corporation

Head Office
NTN-Bower Corporation Macomb Plant
NTK Precision Axle Corporation
American NTN Bearing Manufacturing Corporation Elgin Plant
American NTN Bearing Manufacturing Corporation Schiller Park Plant
NTN Bearing Corporation of America ･NTN USA Corporation

NTN Transmissions Europe

NTN Bearing Corporation of Canada Canada Plant

NTN France S.A.

NTN Bearing Corporation of Canada

NTN Bearing (UK) Ltd.

NTN-Bower Corporation Hamilton Plant

NTN Walzlager (Europa) G.m.b.H.

NTN-BCA Corporation Lititz Plant

NTN Kugellagerfabrik (Deutschland) G.m.b.H. Mettman Plant

NTN Driveshaft, Inc.

ComplianceCorporate Governance
Stakeholder

Through our daily business activities, we strive tocreate value in various ways and to attain asustainable society.

NTN Korea Co., Ltd.
Shanghai NTN Corporation
Changzhou NTN-Guangyang Corporation
NTN-NIDEC (Zhejiang) Corporation
Guangzhou NTN-Yulon Drivetrain Co., Ltd.
NTN China Ltd.

NTN Sudamericana S. A.

NTN Manufacturing (Thailand) Co., Ltd.
NTN Bearing-Thailand Co., Ltd.
NTN Bearing-Singapore (PTE) Ltd.
NTN Bearing-Malaysia SDN. BHD.

Plant
Sales

2●NTN Corporate Social Responsibility Report 2006

NTN Corporate Social Responsibility Report 2006

3

Message from the President

Corporate stakeholders have become extremely diversified, and their demands have become more varied than before.
In terms of corporate activities, self-responsibility is
becoming increasingly expected, and it is no longer
enough to simply follow the law and provide good
products; but it has also become expected for the
corporation to have an outlook to improve society
and to contribute to society. This is why CSR is
something extremely important to corporations including NTN.

● NTN’s social responsibility activities
Yasunobu Suzuki, President● About this report
With the objective of carrying out a structural overhaul of the NTN Group’s CSR activities and improving these activities, we have established a CSR Department at our Head Office. We began strengthening NTN’s CSR activities by setting out basic policies and establishing a committee.
To report NTN’s social responsibility management,
we have expanded our previous “Environmental Action Report” to create this “CSR Report”. It is mysincere wish that it helps you gain a deeper understanding of the NTN Group.

● The corporate operating environment
As you know, corporations including NTN are in aconstantly changing environment. Increased digitization and computerization is driving the globalization of corporate activities, and competition between
corporations is intensifying.
Additionally, various environmental problems, including the concern about global warming, are affecting our corporate activities significantly. Issues
range from energy conservation and resource conservation activities on a corporate level to energysaving activities for society as a whole.

4 NTN Corporate Social Responsibility Report 2006

NTN operates with the following as our corporate
philosophy “We shall contribute to international society through creating new technologies and new
products.” In terms of our corporate development,
we believe it is important to respect the countries
and regions of the world as well as their cultures andpractices, while at the same time to enrich thesecountries and regions through the creation of asense of purpose in the work carried out by our employees. We further believe that it is important to carry out business activities that value the natural environment and ecosystem.
We are grateful that NTN has reached the 88th year
in business.
Currently, we are concluding a 3-year management
plan called “Rapid Advance 21” to expand our business globally and to strengthen our management
system.
Fiscal 2006 is the final stage of “Rapid Advance21”. Through “Hito- Monozukuri innovation” (developing capable employees and an innovative production system), the enhancement of further global management by strategic alliances, and speeding up
product development, we intend to achieve our plan.
By increasing NTN’s corporate value, we hope tostrengthen our brand power worldwide.

● Environmental activities
On the environmental side, we are proactively acting on various regulatory requirements, while at thesame time reducing our impact on the environment
and making every effort to create a recycling society.
Global problems such as global warming, environmental pollution, and the destruction of the natural
world are becoming more serious. NTN regards coexistence with the environment as an issue of utmost
importance and we are promoting the reduction of
CO2 emissions and total recycling on a global level.
We are aiming to eliminate environmentally hazardous substances in our products and manufacturing
processes, while at the same time proactively striving
to develop environmentally responsive products.
Additionally, we are exporting our environmental
management programs or philosophy overseas andincluding our suppliers.
The sites that received ISO 14001 certification last
fiscal year were NTN Mie Corporation in Japan andShanghai NTN Corp. overseas, bringing the total
number of certified sites to 14 domestically and 13
overseas. To expand the scope of environmental
stewardship, we have also requested our suppliers
that they receive certification.
Furthermore, we are supporting our smaller suppliers in their attempts to gain the “Eco Stage” certification, in order to reduce the environmental burden
throughout NTN’s entire supply chain.
NTN’s bearings and constant velocity joints are“eco-friendly products” in that they reduce losses
during transmission of energy in the form of rotationand torque. At NTN, we are aiming to further improve transmission efficiency, and based on thetechnology we have developed so far, we are developing our very own next-generation products thathave a wide range of applications in the environmental and energy fields. We are actively introducing
wind and solar power generation systems at various
sites, recognizing that the utilization of natural energy
is one solution to promote environmental conservation.

Message from the President

Recent economic development and globalization
are creating a worldwide trend toward deregulationand vastly expanding the scope of corporate activities, that trends greatly affect the global environment.

mental beautification, and sports at the various sitesof the NTN Group -- we intend to have an active relationship with local residents as a corporate citizen
in addition to carrying out our business activities.
Also, we supply our products free of charge and givetechnical advice to university clubs related to motor
sports to support Monozukuri activities at the student level.
With respect to our employees, we have established a “Human Resource Training Center” at our
Monozukuri Headquarters based on the belief that
“Monozukuri is based on activities to develop capable employees”. At this center, technical knowledge
and skills are passed on and safety education is carried out to actively develop the people who will betaking on the Monozukuri of tomorrow, as well as tocreate a safe and exciting workplace. Also, at our
Iwata, Kuwana, and Okayama Works, we have “Ideal
Workshops” (social welfare plants) where we support
disabled persons in their efforts to become independent and to give them a sense of purpose in theirwork through our active efforts to employ disabled
people.

● Lastly
The spirit of CSR already permeates society. However, we believe that making CSR a core management priority and actually putting it in practice will
become a more substantial issue for corporations.
NTN has acted to incorporate CSR into our management practices through strengthening our structure
by creating a CSR Department and establishing abasic policy. We believe that CSR is a never-ending
effort on the part of a corporation to determine its responsibilities, to create its own range of action, andto act accordingly.
NTN is putting CSR into practice based on theconception described above and we have created
our first “CSR Report” here. It is far from being totallycomplete but we will strive to satisfy our social responsibilities as a corporation while listening to yourviews and we hope you will not hesitate to sharethem with us.

● Social activities
From a social standpoint, we routinely conform tolegal and regulatory requirements in the course of
our corporate activities. We also intend to deepen
our communication with our stakeholders and respond to various expectations.
Through locally-based activities to contribute to society -- such as the promotion of greening, environ-Yasunobu Suzuki
President
NTN CorportionNTN Corporate Social Responsibility Report 2006

5

Message from the President

Corporate stakeholders have become extremely diversified, and their demands have become more varied than before.
In terms of corporate activities, self-responsibility is
becoming increasingly expected, and it is no longer
enough to simply follow the law and provide good
products; but it has also become expected for the
corporation to have an outlook to improve society
and to contribute to society. This is why CSR is
something extremely important to corporations including NTN.

● NTN’s social responsibility activities
Yasunobu Suzuki, President● About this report
With the objective of carrying out a structural overhaul of the NTN Group’s CSR activities and improving these activities, we have established a CSR Department at our Head Office. We began strengthening NTN’s CSR activities by setting out basic policies and establishing a committee.
To report NTN’s social responsibility management,
we have expanded our previous “Environmental Action Report” to create this “CSR Report”. It is mysincere wish that it helps you gain a deeper understanding of the NTN Group.

● The corporate operating environment
As you know, corporations including NTN are in aconstantly changing environment. Increased digitization and computerization is driving the globalization of corporate activities, and competition between
corporations is intensifying.
Additionally, various environmental problems, including the concern about global warming, are affecting our corporate activities significantly. Issues
range from energy conservation and resource conservation activities on a corporate level to energysaving activities for society as a whole.

4 NTN Corporate Social Responsibility Report 2006

NTN operates with the following as our corporate
philosophy “We shall contribute to international society through creating new technologies and new
products.” In terms of our corporate development,
we believe it is important to respect the countries
and regions of the world as well as their cultures andpractices, while at the same time to enrich thesecountries and regions through the creation of asense of purpose in the work carried out by our employees. We further believe that it is important to carry out business activities that value the natural environment and ecosystem.
We are grateful that NTN has reached the 88th year
in business.
Currently, we are concluding a 3-year management
plan called “Rapid Advance 21” to expand our business globally and to strengthen our management
system.
Fiscal 2006 is the final stage of “Rapid Advance21”. Through “Hito- Monozukuri innovation” (developing capable employees and an innovative production system), the enhancement of further global management by strategic alliances, and speeding up
product development, we intend to achieve our plan.
By increasing NTN’s corporate value, we hope tostrengthen our brand power worldwide.

● Environmental activities
On the environmental side, we are proactively acting on various regulatory requirements, while at thesame time reducing our impact on the environment
and making every effort to create a recycling society.
Global problems such as global warming, environmental pollution, and the destruction of the natural
world are becoming more serious. NTN regards coexistence with the environment as an issue of utmost
importance and we are promoting the reduction of
CO2 emissions and total recycling on a global level.
We are aiming to eliminate environmentally hazardous substances in our products and manufacturing
processes, while at the same time proactively striving
to develop environmentally responsive products.
Additionally, we are exporting our environmental
management programs or philosophy overseas andincluding our suppliers.
The sites that received ISO 14001 certification last
fiscal year were NTN Mie Corporation in Japan andShanghai NTN Corp. overseas, bringing the total
number of certified sites to 14 domestically and 13
overseas. To expand the scope of environmental
stewardship, we have also requested our suppliers
that they receive certification.
Furthermore, we are supporting our smaller suppliers in their attempts to gain the “Eco Stage” certification, in order to reduce the environmental burden
throughout NTN’s entire supply chain.
NTN’s bearings and constant velocity joints are“eco-friendly products” in that they reduce losses
during transmission of energy in the form of rotationand torque. At NTN, we are aiming to further improve transmission efficiency, and based on thetechnology we have developed so far, we are developing our very own next-generation products thathave a wide range of applications in the environmental and energy fields. We are actively introducing
wind and solar power generation systems at various
sites, recognizing that the utilization of natural energy
is one solution to promote environmental conservation.

Message from the President

Recent economic development and globalization
are creating a worldwide trend toward deregulationand vastly expanding the scope of corporate activities, that trends greatly affect the global environment.

mental beautification, and sports at the various sitesof the NTN Group -- we intend to have an active relationship with local residents as a corporate citizen
in addition to carrying out our business activities.
Also, we supply our products free of charge and givetechnical advice to university clubs related to motor
sports to support Monozukuri activities at the student level.
With respect to our employees, we have established a “Human Resource Training Center” at our
Monozukuri Headquarters based on the belief that
“Monozukuri is based on activities to develop capable employees”. At this center, technical knowledge
and skills are passed on and safety education is carried out to actively develop the people who will betaking on the Monozukuri of tomorrow, as well as tocreate a safe and exciting workplace. Also, at our
Iwata, Kuwana, and Okayama Works, we have “Ideal
Workshops” (social welfare plants) where we support
disabled persons in their efforts to become independent and to give them a sense of purpose in theirwork through our active efforts to employ disabled
people.

● Lastly
The spirit of CSR already permeates society. However, we believe that making CSR a core management priority and actually putting it in practice will
become a more substantial issue for corporations.
NTN has acted to incorporate CSR into our management practices through strengthening our structure
by creating a CSR Department and establishing abasic policy. We believe that CSR is a never-ending
effort on the part of a corporation to determine its responsibilities, to create its own range of action, andto act accordingly.
NTN is putting CSR into practice based on theconception described above and we have created
our first “CSR Report” here. It is far from being totallycomplete but we will strive to satisfy our social responsibilities as a corporation while listening to yourviews and we hope you will not hesitate to sharethem with us.

● Social activities
From a social standpoint, we routinely conform tolegal and regulatory requirements in the course of
our corporate activities. We also intend to deepen
our communication with our stakeholders and respond to various expectations.
Through locally-based activities to contribute to society -- such as the promotion of greening, environ-Yasunobu Suzuki
President
NTN CorportionNTN Corporate Social Responsibility Report 2006

5

Philosophy and Structure

Creation of original technologies
2 Offering the technologies for additional value and service
that are suitable for each customer and end user
3 Improvement of employees’ standard of living, distribution offair returns to stockholders, and contribution to society basedon the steady growth of our business
4 Promotion of globalization and formation ofa corporate management system, which are essential for
NTN as a leading international company
1

Under the “CSR Policy”, we haveestablished an “Employee Code of
Conduct” to prepare our employees,
managers, and supervisors. The“Business Code of Conduct” has already been in place for some timeand contains rules that all executives
and employees are to follow, but theobjective of the “Employee Code of
Conduct” is to actively encourage
positive thinking and actions from all
employees, managers, and supervisors in the course of putting CSR
into practice.
6 NTN Corporate Social Responsibility Report 2006

Planning andMarketing Industrial
Sales HQ.

Procurement
Dept. 1

Quality Control Dept.

CSR Policy

Corporate Governance
Employee Codeof Conduct

Business Codeof Conduct

1. Legal compliance /Policy for activities

We shall comply with both the letter and the spirit of laws and regulations,and carry out our business activities in an open and honest manner.

2. Customers

We shall strive to develop new technologies and new products, as wellas to provide safe and reliable products.

3. Business partners

We shall engage in fair and free competition, and at the same time establish excellent
partnerships with our business partners.

4. Stockholders /Disclosure of
information

We shall work to develop this corporation and increase stockholder return, whileat the same time communicating broadly with society and actively disclosing information.

5. Employees

We shall value the individuality and diversity of our employees, work to create a safeand pleasant workplace, and achieve comfort and prosperity.

6. The environment

Environmental
Management Dept.

Each NTN Site

CSR Policy
The “CSR Policy” was created to
specify the social responsibilities of acorporation and put a plan into place
to completely fulfill these
responsibilities. Each employee of
NTN takes part in these eight policies,
and is putting CSR into practice
every day in the workplaces.

CSR Dept.

CSR Committee

Management
Planning Dept.

Corporate
Philosophy

Overall Supervisor

Intellectual Property
Planning Dept.

For New Technology Network

Board of Directors

Personnel Dept.

■ NTN’s Conceptual Framework■ CSR Promotion Structure

Legal Dept.

We shall contribute to international society through creating
new technologies and new products

stakeholders can be appropriately incorporated by each department andsite into the next company-wide initiative, allowing us to become a corporation that is trusted by society.

CSR activities can be defined ascompany-wide efforts by NTN Group
companies to work as a corporationthat is needed by society. By setting
up a structure that vigorously promotes CSR activities, feedback from

General Affairs
Dept.

Corporate Philosophy● CSR Promotion Structure
In April 2006, we established a
CSR Department and started CSR
activities in a fundamental way.
The CSR Department was established as a specialized department tooversee the NTN Group’s CSR activities, working to strengthen and promote these efforts. The CSR Department established the “CSR Policy”
and the “CSR Activity Management
Regulations”, which form the guidelines for NTN’s CSR activities.
Also, we have established a CSR
Committee made up of relevant departments, which is working to overhaul the corporate philosophy, toraise awareness, and to address issues related to CSR.

Philosophy and Structure

A corporation must first and foremost realize that it is a social entity. NTN’s CSR activities
start with the question “How can we contribute to society?” In addition, we use NTN’s
corporate philosophy (which summarizes the ideal state of NTN) to provide perspective,
while we are working to put CSR into practice at the entire NTN Group as adapted to local
customs and laws.

With ample consideration to preserving the global environment and protecting theecosystem, we shall work toward the creation of a sustainable progressing society.

7. Society

We shall actively make every effort to interact meaningfully with society on a local
level, and to engage in activities that contribute to society.

8. International
activities

We shall, as a matter of course, obey all international rules as well as the laws of eachcountry and each region that we operate in; we shall also respect local cultures andpractices and contribute to local development.

Our company regards the strengthening and enrichment of corporate
governance as one of our most important issues. As we pursue greater
efficiency and soundness in ourmanagement, we are also striving toincrease management transparency
by disclosing information swiftly andaccurately. Our company does employ an auditing system, but to reinforce our corporate governancestructure, we are strengthening theboard of directors and, through our
corporate auditors, our management
oversight structure.
● Board of Directors
The Board of Directors deliberates
and makes decisions related to
NTN’s fundamental management policies and to laws and regulations, aswell as to important management
items; it also supervises the execution of business operations by ourcompany officers. As a rule, theBoard of Directors meets once amonth, but meetings of the Board of
Directors are carried out as required.
● Business Strategy Committee
and the Executive Officer
Structure
The Business Strategy Committee
deliberates on basic management
policies and important policies rela-ted to management. As a rule, theBusiness Strategy Committee meets
twice a month. In addition, in June
2004, the Board of Directors was
slimmed down and an executive officer structure was introduced so thatdecisions can be made swiftly andfunctions can be executed promptly.
● Auditors
NTN has four corporate auditors,
two of whom are standing auditors,
and three of the four auditors areoutside auditors. The auditors audit
the board’s execution of business
operations by attending board meetings and expressing their opinions
and by working to maintain and im-prove the transparency and fairnessof the management structure.
Standing auditors also participate in
the meetings of the Business Strategy and Operating Committees andthe system ensures that they can express their opinions on matters before those committees. Furthermore,
the corporate auditors work to increase the efficiency of the overall
auditor process, meeting regularly
and cooperating with others regarding their own audits, audits by independent public audit firms, and internal audits.

■ Corporate Governance Structure
Stockholder Meeting
Assignment/Removal
Auditors
Audit

Assignment/Removal

Assignment/Removal

Board of Directors

Accounting Auditors (Audit firm)

Assignment/Supervises
President
Business Strategy
Committee
Operating Committee
Directors
Executives(Other positions omitted)
NTN Corporate Social Responsibility Report 2006

7

Philosophy and Structure

Creation of original technologies
2 Offering the technologies for additional value and service
that are suitable for each customer and end user
3 Improvement of employees’ standard of living, distribution offair returns to stockholders, and contribution to society basedon the steady growth of our business
4 Promotion of globalization and formation ofa corporate management system, which are essential for
NTN as a leading international company
1

Under the “CSR Policy”, we haveestablished an “Employee Code of
Conduct” to prepare our employees,
managers, and supervisors. The“Business Code of Conduct” has already been in place for some timeand contains rules that all executives
and employees are to follow, but theobjective of the “Employee Code of
Conduct” is to actively encourage
positive thinking and actions from all
employees, managers, and supervisors in the course of putting CSR
into practice.
6 NTN Corporate Social Responsibility Report 2006

Planning andMarketing Industrial
Sales HQ.

Procurement
Dept. 1

Quality Control Dept.

CSR Policy

Corporate Governance
Employee Codeof Conduct

Business Codeof Conduct

1. Legal compliance /Policy for activities

We shall comply with both the letter and the spirit of laws and regulations,and carry out our business activities in an open and honest manner.

2. Customers

We shall strive to develop new technologies and new products, as wellas to provide safe and reliable products.

3. Business partners

We shall engage in fair and free competition, and at the same time establish excellent
partnerships with our business partners.

4. Stockholders /Disclosure of
information

We shall work to develop this corporation and increase stockholder return, whileat the same time communicating broadly with society and actively disclosing information.

5. Employees

We shall value the individuality and diversity of our employees, work to create a safeand pleasant workplace, and achieve comfort and prosperity.

6. The environment

Environmental
Management Dept.

Each NTN Site

CSR Policy
The “CSR Policy” was created to
specify the social responsibilities of acorporation and put a plan into place
to completely fulfill these
responsibilities. Each employee of
NTN takes part in these eight policies,
and is putting CSR into practice
every day in the workplaces.

CSR Dept.

CSR Committee

Management
Planning Dept.

Corporate
Philosophy

Overall Supervisor

Intellectual Property
Planning Dept.

For New Technology Network

Board of Directors

Personnel Dept.

■ NTN’s Conceptual Framework■ CSR Promotion Structure

Legal Dept.

We shall contribute to international society through creating
new technologies and new products

stakeholders can be appropriately incorporated by each department andsite into the next company-wide initiative, allowing us to become a corporation that is trusted by society.

CSR activities can be defined ascompany-wide efforts by NTN Group
companies to work as a corporationthat is needed by society. By setting
up a structure that vigorously promotes CSR activities, feedback from

General Affairs
Dept.

Corporate Philosophy● CSR Promotion Structure
In April 2006, we established a
CSR Department and started CSR
activities in a fundamental way.
The CSR Department was established as a specialized department tooversee the NTN Group’s CSR activities, working to strengthen and promote these efforts. The CSR Department established the “CSR Policy”
and the “CSR Activity Management
Regulations”, which form the guidelines for NTN’s CSR activities.
Also, we have established a CSR
Committee made up of relevant departments, which is working to overhaul the corporate philosophy, toraise awareness, and to address issues related to CSR.

Philosophy and Structure

A corporation must first and foremost realize that it is a social entity. NTN’s CSR activities
start with the question “How can we contribute to society?” In addition, we use NTN’s
corporate philosophy (which summarizes the ideal state of NTN) to provide perspective,
while we are working to put CSR into practice at the entire NTN Group as adapted to local
customs and laws.

With ample consideration to preserving the global environment and protecting theecosystem, we shall work toward the creation of a sustainable progressing society.

7. Society

We shall actively make every effort to interact meaningfully with society on a local
level, and to engage in activities that contribute to society.

8. International
activities

We shall, as a matter of course, obey all international rules as well as the laws of eachcountry and each region that we operate in; we shall also respect local cultures andpractices and contribute to local development.

Our company regards the strengthening and enrichment of corporate
governance as one of our most important issues. As we pursue greater
efficiency and soundness in ourmanagement, we are also striving toincrease management transparency
by disclosing information swiftly andaccurately. Our company does employ an auditing system, but to reinforce our corporate governancestructure, we are strengthening theboard of directors and, through our
corporate auditors, our management
oversight structure.
● Board of Directors
The Board of Directors deliberates
and makes decisions related to
NTN’s fundamental management policies and to laws and regulations, aswell as to important management
items; it also supervises the execution of business operations by ourcompany officers. As a rule, theBoard of Directors meets once amonth, but meetings of the Board of
Directors are carried out as required.
● Business Strategy Committee
and the Executive Officer
Structure
The Business Strategy Committee
deliberates on basic management
policies and important policies rela-ted to management. As a rule, theBusiness Strategy Committee meets
twice a month. In addition, in June
2004, the Board of Directors was
slimmed down and an executive officer structure was introduced so thatdecisions can be made swiftly andfunctions can be executed promptly.
● Auditors
NTN has four corporate auditors,
two of whom are standing auditors,
and three of the four auditors areoutside auditors. The auditors audit
the board’s execution of business
operations by attending board meetings and expressing their opinions
and by working to maintain and im-prove the transparency and fairnessof the management structure.
Standing auditors also participate in
the meetings of the Business Strategy and Operating Committees andthe system ensures that they can express their opinions on matters before those committees. Furthermore,
the corporate auditors work to increase the efficiency of the overall
auditor process, meeting regularly
and cooperating with others regarding their own audits, audits by independent public audit firms, and internal audits.

■ Corporate Governance Structure
Stockholder Meeting
Assignment/Removal
Auditors
Audit

Assignment/Removal

Assignment/Removal

Board of Directors

Accounting Auditors (Audit firm)

Assignment/Supervises
President
Business Strategy
Committee
Operating Committee
Directors
Executives(Other positions omitted)
NTN Corporate Social Responsibility Report 2006

7

Philosophy and Structure

There are many risks in business,and it is important to minimize the effects when these risks materialize.
Our company has prepared for theadvent of various risks, and we haveestablished an “Emergency Management Center” to deal with them appropriately.
This center identifies risks inherent
in daily operation, checks the causesof these risks, and reviews and implements countermeasures for whenthese risks do materialize. If a criticalincident, accident, or problem does
occur that seriously affects business
operations, this center comprehensively gathers and disseminates information, devises countermeasures,and issues instructions swiftly so thatdamage is minimized.

These activities ensure that the reliability of the NTN Group as a wholeis maintained.

■ Risk Management Structure

Critical Risk
Risk Management Center(Person responsible: General Affairs Dept. Manager)
Risk Manager from each site

President
Officer overseeing
general affairs
Officer overseeing
operations

Discoverer of risk

Compliance● Corporate Ethics Committee

8●NTN Corporate Social Responsibility Report 2006

We shall do our utmost to act with conscience as corporate employees and as socially responsible adults,
by complying with the law, our internal rules, and the ethical norms of society.

2. Pursuit of quality and safety

We shall deliver products that ensure reliability and customer satisfaction by enhancing quality and safety.

3. Proper labeling and specification

We shall properly label and specify the contents of our products and services.

4. Compliance with the Anti-Monopoly Law

We shall not violate the Anti-Monopoly Law and we shall make only fair trades.

5. Fair trade with suppliers

We shall follow fair trade practices with our suppliers and comply with the Subcontract Laws.

6. Refusal to engage in improper
conduct with business partners

We shall decline any invitation to engage in improper or illegal conduct with any business partner.

7. Ensuring security by strengthening
export controls

We shall not export any freight or provide any technology that may threaten international peace and security.

8. Honoring agreements

We shall enter into and honor fair agreements with our business partners.

9. Respect for intellectual
property rights

We shall recognize that intellectual property rights are precious managerial resources, and show respect forand not infringe upon others' intellectual property rights, while making efforts to create and keep our own intellectual property.

10. Proper control ofconfidential information

We shall place proper controls on our proprietary information and also on such confidential information as
we have obtained lawfully from others, and we shall not allow leaks to occur or disclose such information to
any party outside our company without the relevant party's consent.

11. Compliance with industrial laws

We shall fully comply with industrial laws in all our business operations, and we shall not violate those laws.

12. Efforts to preserve the environment

We shall make positive efforts to preserve the environment and reduce the burden on our planet by creating a recycling societythat will co-exist with the natural environment and contribute to the well-balanced development of society and Earth.

13. Proper disclosure of ourmanagerial information

We shall properly disclose our managerial information, including our financial status, business operating conditions, etc.,
to relevant parties such as stockholders and investors, in addition to informing them clearly of our management
policy and receiving in good faith their opinions or criticism regarding that information.

14. Positive contribution to society

We shall contribute to society through our business activities, and also continuously participate in social, cultural,
educational, and sports activities as a good corporate citizen, active supporter, and conscientious contributor.

15. Compliance with labor-related laws
and company work rules

We shall comply with labor-related laws, our company work rules, and any ancillary rules and regulations.

16. Realization of a safe, positive
work environment

We shall understand and comply with the laws and internal rules concerning operational safety and hygiene inorder to ensure our safety and good health in our offices and facilities and to form a positive work environment.

17. Respect for human rights

We shall respect human rights and shall not engage in conduct that might lead to discrimination
by sex, age, race, handicap, etc.

18. Prohibition of sexual harassment

We shall recognize that sexual harassment harms our work environment and hinders the smooth operationof the workplace. Therefore, we shall prohibit sexual harassment in the workplace.

19. Proper control of information
about individuals

We shall strictly control the information about individuals - executives, employees, and others that is acquired and used in our business operations.

20. Prohibition of insider trading

We shall not violate nor shall we engage in conduct that even suggests actions contrary to the regulations against insider trading.

21. Confronting harmful social forces

We shall not submit to any social force harmful to society, and we shall resolutely confront any such force.

22. Self-restraint regarding
entertainment and gifts

We shall not try to bribe domestic or foreign governmental officials or engage in any such suspicious behavior. We shallcircumscribe entertainment or gift-giving in our relations with business partners by practicing proper judgment and common sense.

23. Lawful actions on behalf of political parties

We shall not illegally act on behalf of, or make contributions to, political parties.

24. Proper utilization of our information system

We shall use our information system only for our corporate operations and not for personal purposes.

25. Strict distinction between
public and private matters

We shall strictly distinguish personal from corporate interests and carry out our duties in good faith.

Countermeasure Headquarters (Headed by: President)

For critical management risks, a Countermeasure Headquarters is established to address therisk. For anything else, the department that has jurisdiction addresses the risk. All information related to risk management goes through the Risk Management Center.

With an increased concern regarding corporate social responsibilities,
we have established an internal Corporate Ethics Committee to strengthen our compliance structure basedon a corporate ethics (compliance)
management standard established in
May 2003.
In 2006, we distributed the“Revised Insider Trading Restrictions
Q&A” published by the Tokyo Stock
Exchange to our directors and management, and we are working to increase awareness of the relevant issues and to ensure total compliance.
In accordance with the Whistleblower Protection Act, we have established internal and external reporting
contacts, augmenting our compliance structure. In terms of export
controls to protect security, we havefinished creating an internal management structure. We are also strengthening our export controls by educating employees internally (focusing
on the sales departments), as well as
by implementing internal audits.

1. Compliance with laws and norms■ Business Code of Conduct
Compliance Structure
Board of Directors
Overall Supervisor(Director in Charge)

lations, and ethical standards thateveryone including top management
and all employees should abide by;by carrying out internal employee
education and distributing cards, we
are working toward the thorough establishment of these practices.

Corporate Ethics Committee
・Consultation/Reports
・Advice
AdviseExternal
Help Desk(Law Office)・Consultation/Reports
・Advice
AdviseInternal
Help Desk(Legal Dept.)

Promotion
Division(Legal Dept.)

・Inquiries
・Enlightenment ・Audit
・Consultations ・Education ・Improvement
guidance・Response・Contact
Helpline
Managers

Auditing Division

NTN Group Directors Business Codeand Employeesof Conduct

・Audit・Improvement
guidance● Business Code of Conduct
With respect to thorough compliance at NTN, we have established a“Business Code of Conduct” basedon our corporate ethics (compliance)
standard that shows the laws, regu-

Business Code of Conduct
NTN Corporation● Help Line
When a director or employee observes actions that indicate the Business Code of Conduct is being contravened or if he/she has any
suspicions that the Code is being
contravened, he/she may contact thecorporate ethics committee directly
without going through regular management channels by contacting aninternal or external “Help desk” wehave set up. From April 1 of this year,
it has become available for whistleblowers, too.

● Evaluations by External Organizations

In recent years, there has been growing interest in socially
responsible investment (SRI), which is regarded as a basis
for making investment decisions. Investments are evaluated
not only based on profitability and growth but on consideration of environmental conservation and contribution to society. NTN stock is included in the SRI indices shown on
the right.

FTSE4Good

MS-SRI

EthibelThe first socially responsible investment index in Japan, which includes
150 companies of excellence chosen
by Morningstar Japan K.K. from theapproximately 3,600 companies listed
within Japan.

Belgium’s Ethibel Group is a company that specializes in evaluating European SRI and CSR activities, andchooses companies that lead the way
in terms of sustainability.

England’s FTSE International evaluates corporations from the standpoints of environmental sustainability,
social issues, and relationship withstakeholders.

NTN Corporate Social Responsibility Report 2006●9

Philosophy and Structure■ Business Code of Conduct● Risk Management

Philosophy and Structure

There are many risks in business,and it is important to minimize the effects when these risks materialize.
Our company has prepared for theadvent of various risks, and we haveestablished an “Emergency Management Center” to deal with them appropriately.
This center identifies risks inherent
in daily operation, checks the causesof these risks, and reviews and implements countermeasures for whenthese risks do materialize. If a criticalincident, accident, or problem does
occur that seriously affects business
operations, this center comprehensively gathers and disseminates information, devises countermeasures,and issues instructions swiftly so thatdamage is minimized.

These activities ensure that the reliability of the NTN Group as a wholeis maintained.

■ Risk Management Structure

Critical Risk
Risk Management Center(Person responsible: General Affairs Dept. Manager)
Risk Manager from each site

President
Officer overseeing
general affairs
Officer overseeing
operations

Discoverer of risk

Compliance● Corporate Ethics Committee

8●NTN Corporate Social Responsibility Report 2006

We shall do our utmost to act with conscience as corporate employees and as socially responsible adults,
by complying with the law, our internal rules, and the ethical norms of society.

2. Pursuit of quality and safety

We shall deliver products that ensure reliability and customer satisfaction by enhancing quality and safety.

3. Proper labeling and specification

We shall properly label and specify the contents of our products and services.

4. Compliance with the Anti-Monopoly Law

We shall not violate the Anti-Monopoly Law and we shall make only fair trades.

5. Fair trade with suppliers

We shall follow fair trade practices with our suppliers and comply with the Subcontract Laws.

6. Refusal to engage in improper
conduct with business partners

We shall decline any invitation to engage in improper or illegal conduct with any business partner.

7. Ensuring security by strengthening
export controls

We shall not export any freight or provide any technology that may threaten international peace and security.

8. Honoring agreements

We shall enter into and honor fair agreements with our business partners.

9. Respect for intellectual
property rights

We shall recognize that intellectual property rights are precious managerial resources, and show respect forand not infringe upon others' intellectual property rights, while making efforts to create and keep our own intellectual property.

10. Proper control ofconfidential information

We shall place proper controls on our proprietary information and also on such confidential information as
we have obtained lawfully from others, and we shall not allow leaks to occur or disclose such information to
any party outside our company without the relevant party's consent.

11. Compliance with industrial laws

We shall fully comply with industrial laws in all our business operations, and we shall not violate those laws.

12. Efforts to preserve the environment

We shall make positive efforts to preserve the environment and reduce the burden on our planet by creating a recycling societythat will co-exist with the natural environment and contribute to the well-balanced development of society and Earth.

13. Proper disclosure of ourmanagerial information

We shall properly disclose our managerial information, including our financial status, business operating conditions, etc.,
to relevant parties such as stockholders and investors, in addition to informing them clearly of our management
policy and receiving in good faith their opinions or criticism regarding that information.

14. Positive contribution to society

We shall contribute to society through our business activities, and also continuously participate in social, cultural,
educational, and sports activities as a good corporate citizen, active supporter, and conscientious contributor.

15. Compliance with labor-related laws
and company work rules

We shall comply with labor-related laws, our company work rules, and any ancillary rules and regulations.

16. Realization of a safe, positive
work environment

We shall understand and comply with the laws and internal rules concerning operational safety and hygiene inorder to ensure our safety and good health in our offices and facilities and to form a positive work environment.

17. Respect for human rights

We shall respect human rights and shall not engage in conduct that might lead to discrimination
by sex, age, race, handicap, etc.

18. Prohibition of sexual harassment

We shall recognize that sexual harassment harms our work environment and hinders the smooth operationof the workplace. Therefore, we shall prohibit sexual harassment in the workplace.

19. Proper control of information
about individuals

We shall strictly control the information about individuals - executives, employees, and others that is acquired and used in our business operations.

20. Prohibition of insider trading

We shall not violate nor shall we engage in conduct that even suggests actions contrary to the regulations against insider trading.

21. Confronting harmful social forces

We shall not submit to any social force harmful to society, and we shall resolutely confront any such force.

22. Self-restraint regarding
entertainment and gifts

We shall not try to bribe domestic or foreign governmental officials or engage in any such suspicious behavior. We shallcircumscribe entertainment or gift-giving in our relations with business partners by practicing proper judgment and common sense.

23. Lawful actions on behalf of political parties

We shall not illegally act on behalf of, or make contributions to, political parties.

24. Proper utilization of our information system

We shall use our information system only for our corporate operations and not for personal purposes.

25. Strict distinction between
public and private matters

We shall strictly distinguish personal from corporate interests and carry out our duties in good faith.

Countermeasure Headquarters (Headed by: President)

For critical management risks, a Countermeasure Headquarters is established to address therisk. For anything else, the department that has jurisdiction addresses the risk. All information related to risk management goes through the Risk Management Center.

With an increased concern regarding corporate social responsibilities,
we have established an internal Corporate Ethics Committee to strengthen our compliance structure basedon a corporate ethics (compliance)
management standard established in
May 2003.
In 2006, we distributed the“Revised Insider Trading Restrictions
Q&A” published by the Tokyo Stock
Exchange to our directors and management, and we are working to increase awareness of the relevant issues and to ensure total compliance.
In accordance with the Whistleblower Protection Act, we have established internal and external reporting
contacts, augmenting our compliance structure. In terms of export
controls to protect security, we havefinished creating an internal management structure. We are also strengthening our export controls by educating employees internally (focusing
on the sales departments), as well as
by implementing internal audits.

1. Compliance with laws and norms■ Business Code of Conduct
Compliance Structure
Board of Directors
Overall Supervisor(Director in Charge)

lations, and ethical standards thateveryone including top management
and all employees should abide by;by carrying out internal employee
education and distributing cards, we
are working toward the thorough establishment of these practices.

Corporate Ethics Committee
・Consultation/Reports
・Advice
AdviseExternal
Help Desk(Law Office)・Consultation/Reports
・Advice
AdviseInternal
Help Desk(Legal Dept.)

Promotion
Division(Legal Dept.)

・Inquiries
・Enlightenment ・Audit
・Consultations ・Education ・Improvement
guidance・Response・Contact
Helpline
Managers

Auditing Division

NTN Group Directors Business Codeand Employeesof Conduct

・Audit・Improvement
guidance● Business Code of Conduct
With respect to thorough compliance at NTN, we have established a“Business Code of Conduct” basedon our corporate ethics (compliance)
standard that shows the laws, regu-

Business Code of Conduct
NTN Corporation● Help Line
When a director or employee observes actions that indicate the Business Code of Conduct is being contravened or if he/she has any
suspicions that the Code is being
contravened, he/she may contact thecorporate ethics committee directly
without going through regular management channels by contacting aninternal or external “Help desk” wehave set up. From April 1 of this year,
it has become available for whistleblowers, too.

● Evaluations by External Organizations

In recent years, there has been growing interest in socially
responsible investment (SRI), which is regarded as a basis
for making investment decisions. Investments are evaluated
not only based on profitability and growth but on consideration of environmental conservation and contribution to society. NTN stock is included in the SRI indices shown on
the right.

FTSE4Good

MS-SRI

EthibelThe first socially responsible investment index in Japan, which includes
150 companies of excellence chosen
by Morningstar Japan K.K. from theapproximately 3,600 companies listed
within Japan.

Belgium’s Ethibel Group is a company that specializes in evaluating European SRI and CSR activities, andchooses companies that lead the way
in terms of sustainability.

England’s FTSE International evaluates corporations from the standpoints of environmental sustainability,
social issues, and relationship withstakeholders.

NTN Corporate Social Responsibility Report 2006●9

Philosophy and Structure■ Business Code of Conduct● Risk Management

Awards Received in FY 2005
The NTN Group is involved in business activities such as next-generation technologicaldevelopment and research through business-academic partnerships that is carried out by our
various employees, departments, and sites. Several of these activities have been brought tofruition and recognized, and are introduced below.

Monozukuri

Cutting-edge Technology● Outstanding Performance Prize of the First “Monozukuri Nippon
Grand Award ”● The first Beatrice Award winner from Japan in 20 years

In August 2005, NTN was awarded
the newly established Prime Minister’s award, the Outstanding Performance Prize of the first “Monozukuri
Nippon Grand Award”, for a “fluid
dynamic bearing unit used in harddisk drive spindle motors”.

At the International
Solid State Circuit
Conference held in Febrary 2005 in San
Francisco, an academic paper written in ajoint effort between
Shizuoka University and NTN won
the "Beatrice Award for Editorial Excellence".
This is the largest conference related to integrated circuits and considered the Olympics of integrated circuits. It is the first time in 20 years
that this award was given to Japanese recipients.
The award is presented to only one
academic paper a year. The award
was given for a joint paper titled “Arotary encoder system based onmagnetic pattern analysis with a resolution of 10b per rotation”. This
item is not only significantly smaller
than existing products, but also isable to use a 5mm square semiconductor to measure angles at a resolution of 1/1000th of a rotation. This
academic paper represents innovative work on large-scale integration
incorporating more than 4000 sensor
elements and image analysis patternmeasurement methods.

Actuator
Platter(Memory disk)
Spindle motor

The award
was given inrecognition of
the decreased
noise and resolution of
cost issues with a sintered oil-impregnated bearing in the fluid dynamic bearing unit for hard disk
drives. The development of the noncontact spindle used in the device
required overcoming the unique difficulties of machining dynamic bearings, and achieving mass production
while maintaining ultra-high precision. The excellent results represent
the culmination of a 2-year research
effort by NIDEC and NTN.

Bearing unit
Structure of the hard disk drive unit

Magnetic head

● “Innovative Product Award”
The first linear feeder
In April 2006, NTN was awarded
to combine the functhe machinery parts division of thetions of storage, align3rd “Innovative Product Award”, anment, and supply ofaward sponsored by the Nikkan Koparts in a signle unit,
gyo Shimbun and supported by
the feeder has a simMETI and JCCI, for our “Monodrive
ple structure and has
Two-Way Feeder”.
received praise for its ease of use.
The Monodrive Two-Way Feeder isThis prize is a “behind-the-scenes”
a parts feeder that can move parts totype of prize, and spotlights parts
both the supply side and the oppothat are low in costsite side of the feeder. The
but are high in quality.
number of moving parts is
Parts are the wellhalf that of conventional
spring of competitivemodels, and in addition toness in Monozukuri,
being smaller and lighter,and as a parts manuit also saves energy and infacturer, we feel thatcurs low maintenancethis prize is one that iscosts.
“Monodrive Two-Way Feeder”
well-deserved.

SocialResponsibility

For Individuals and Society

Can we earnestly accept the demands
made on us and respond in a mannerthat increases trust and satisfies society?
This question is the basis of our efforts.

Award ceremony

Environment● Superior Energy Management at
Plant

10●NTN Corporate Social Responsibility Report 2006

In February 2006, NTN’s Okayama
Works received an award from the
Director of the Chugoku Bureau of
Economy, Trade and Industry as asuperior plant in energy management(electricity category) for fiscal 2005.
This award is presented to plants that

promote and achieve major successin energy conservation and that serve
as models for others.
This award recognizes Okayama
Works’ many years of energy management and conservation.

NTN Corporate Social Responsibility Report 2006

11

Awards Received in FY 2005
The NTN Group is involved in business activities such as next-generation technologicaldevelopment and research through business-academic partnerships that is carried out by our
various employees, departments, and sites. Several of these activities have been brought tofruition and recognized, and are introduced below.

Monozukuri

Cutting-edge Technology● Outstanding Performance Prize of the First “Monozukuri Nippon
Grand Award ”● The first Beatrice Award winner from Japan in 20 years

In August 2005, NTN was awarded
the newly established Prime Minister’s award, the Outstanding Performance Prize of the first “Monozukuri
Nippon Grand Award”, for a “fluid
dynamic bearing unit used in harddisk drive spindle motors”.

At the International
Solid State Circuit
Conference held in Febrary 2005 in San
Francisco, an academic paper written in ajoint effort between
Shizuoka University and NTN won
the "Beatrice Award for Editorial Excellence".
This is the largest conference related to integrated circuits and considered the Olympics of integrated circuits. It is the first time in 20 years
that this award was given to Japanese recipients.
The award is presented to only one
academic paper a year. The award
was given for a joint paper titled “Arotary encoder system based onmagnetic pattern analysis with a resolution of 10b per rotation”. This
item is not only significantly smaller
than existing products, but also isable to use a 5mm square semiconductor to measure angles at a resolution of 1/1000th of a rotation. This
academic paper represents innovative work on large-scale integration
incorporating more than 4000 sensor
elements and image analysis patternmeasurement methods.

Actuator
Platter(Memory disk)
Spindle motor

The award
was given inrecognition of
the decreased
noise and resolution of
cost issues with a sintered oil-impregnated bearing in the fluid dynamic bearing unit for hard disk
drives. The development of the noncontact spindle used in the device
required overcoming the unique difficulties of machining dynamic bearings, and achieving mass production
while maintaining ultra-high precision. The excellent results represent
the culmination of a 2-year research
effort by NIDEC and NTN.

Bearing unit
Structure of the hard disk drive unit

Magnetic head

● “Innovative Product Award”
The first linear feeder
In April 2006, NTN was awarded
to combine the functhe machinery parts division of thetions of storage, align3rd “Innovative Product Award”, anment, and supply ofaward sponsored by the Nikkan Koparts in a signle unit,
gyo Shimbun and supported by
the feeder has a simMETI and JCCI, for our “Monodrive
ple structure and has
Two-Way Feeder”.
received praise for its ease of use.
The Monodrive Two-Way Feeder isThis prize is a “behind-the-scenes”
a parts feeder that can move parts totype of prize, and spotlights parts
both the supply side and the oppothat are low in costsite side of the feeder. The
but are high in quality.
number of moving parts is
Parts are the wellhalf that of conventional
spring of competitivemodels, and in addition toness in Monozukuri,
being smaller and lighter,and as a parts manuit also saves energy and infacturer, we feel thatcurs low maintenancethis prize is one that iscosts.
“Monodrive Two-Way Feeder”
well-deserved.

SocialResponsibility

For Individuals and Society

Can we earnestly accept the demands
made on us and respond in a mannerthat increases trust and satisfies society?
This question is the basis of our efforts.

Award ceremony

Environment● Superior Energy Management at
Plant

10●NTN Corporate Social Responsibility Report 2006

In February 2006, NTN’s Okayama
Works received an award from the
Director of the Chugoku Bureau of
Economy, Trade and Industry as asuperior plant in energy management(electricity category) for fiscal 2005.
This award is presented to plants that

promote and achieve major successin energy conservation and that serve
as models for others.
This award recognizes Okayama
Works’ many years of energy management and conservation.

NTN Corporate Social Responsibility Report 2006

11

Working with Individuals and Society

For Customers

Quality Management

Based on our Corporate Philosophy, NTN has set out a “Basic Quality Policy” in order to earn the trust of
our customers and fully satisfy customers’ needs.

● Basic Quality Policy● Quality Management Policy“Provide appropriate quality thatsatisfies the customer’s required
functions and specifications”
To respond promptly to changes incustomer needs(Conformable quality)
To be superior in competitive quality(Competitive quality)
To pursue profit-making quality(Economic quality)

Based on the “Basic Quality Policy”, the “Quality Management Policy” is established every year for theengineering, manufacturing, andsales departments to clarify the approach that each department shouldtake to quality.

■ Quality Assurance System

Corporate
Philosophy

Basic Quality Policy

Quality Management Policy

Action Plan for each Department
Engineering
Departments

Sales
Departments

Manufacturing
Departments

Engineering departments“Continuously implementing theidea of ‘Design determines everything’”
We will accurately grasp customer
requirements to create “Designs thatare easy to understand and manufacture and that prevent mistakes.”
Manufacturing departments“Preventing the recurrence ofclaims and ensuring the quality of
new products”
In the course of Monozukuri, we will“build in” quality and develop our
personnel by sharing quality techniques and skills to establish a global
quality control system.

Most of NTN’s manufacturing facilities have
“ISO/TS 16949: 2002” certification, which is a global automotive quality standard. This standard isfor the automobile industry and is reportedly themost stringent in the world. It sets out quality system requirements with respect to design, R&D,
manufacturing, installation, and service.

12●NTN Corporate Social Responsibility Report 2006

Products that support reliability and safety● Quality Improvement
Conference for suppliers
NTN holds a yearly Quality Improvement Conference for suppliersin order to provide our customers
with products which fulfill theirneeds. At this conference, top management from suppliers is invitedwith the objective of quality improvement. A main theme of the conference is set every year and the resultsof various activities are presented. In
2005, with the theme of “Increasing
workplace vitality”, both NTN and the
suppliers presented the results of activities related to “Using visual controls in the manufacturing workplace”, “Improving quality of boughtin parts and materials”, and“Activities to reduce quality defects”.
Moreover, a lecture titled “The role ofmanagers and supervisors in increasing workplace vitality” was presented, and attendees were reminded of the importance of the role ofmanagers and supervisors.

Sales departments“To provide what the customer
needs”
We will constantly work to grasp
subtle changes in customer needs
and by sharing these needs within
the company improve customer satisfaction.

ISO/TS 16949 Certification

Today, the key words that draw our attention in our everyday lives are “reliability” and “safety”. NTN has
strived to develop products incorporating these key concepts since its early years. NTN technology, which
supports reliability and safety, has produced a variety of product families, and with sure-footed experiencein cutting-edge science and technology fields, we continue to receive commendations from customers.

The purpose of the standard is to provide highquality products to worldwide automobile users
through kaizen to prevent defects from happening,by preventing supply chain troubles, and by reducing quality variations and waste. As this standard
focuses on customer satisfaction, certification inthis standard makes us ready to access the automobile industries of the world.

● Continuing efforts with “highspeed and safety”
Ensuring safety in an era of highspeed railways has become increasingly important. NTN’s bearing technology excels in railcar bearings, too.
These include the “Megaohm” primary motor bearings used in the‘Nozomi’ bullet trains, “drive unit
bearings” used to properly transmit
drive power to the rail car axles, “axlebearings” that promise a comfortable
trip, and “RCT bearings” used by railways all over the world. This diverse
product lineup continues to ensure
the safety of railcars in Japan andworldwide.

while rotating at 10,000 revolutions
per minute in a 200°C environment.
Both products are produced at specialized plants, and each and every
bearing receives non-destructive
testing so that high quality and reliability are achieved. This technicalexcellence has been recognized, and
NTN is Japan’s only certified supplierfor General Electric Aircraft Engines (GEAE).

● We first tackled extreme
environments in the 1970s
It was in the 1970s that we firststarted on the development of abearing for rocket engine turbo
pumps. A bearing that can rotate at
an ultra-high speed of 50,000 revolution per minute in a -253°C liquidhydrogen environment without
using oil or grease was theultimate challenge for extreme environments. Since
then, NTN-brand bearings
have contributed to Japan’s space development
and support the success ofdomestic rocket launches.

®JAXA● We support the reliability ofjumbo jet engines
In the engines of jumbo jets thatcarry over 500 people, you can findNTN-brand bearings. “Three-point
contact ball bearings” and“cylindrical roller bearings” provide
travelers with a safe and steady trip,

NTN Corporate Social Responsibility Report 2006●13

Working with Individuals and Society

We believe that quality is the essence of NTN’s corporate brand, and we are constantly
working to realize “dramatic increases in quality”. By connecting these efforts to productmanufacturing, we respond accurately to the diverse needs of the market, satisfying customers’ needs and creating trust.

Working with Individuals and Society

For Customers

Quality Management

Based on our Corporate Philosophy, NTN has set out a “Basic Quality Policy” in order to earn the trust of
our customers and fully satisfy customers’ needs.

● Basic Quality Policy● Quality Management Policy“Provide appropriate quality thatsatisfies the customer’s required
functions and specifications”
To respond promptly to changes incustomer needs(Conformable quality)
To be superior in competitive quality(Competitive quality)
To pursue profit-making quality(Economic quality)

Based on the “Basic Quality Policy”, the “Quality Management Policy” is established every year for theengineering, manufacturing, andsales departments to clarify the approach that each department shouldtake to quality.

■ Quality Assurance System

Corporate
Philosophy

Basic Quality Policy

Quality Management Policy

Action Plan for each Department
Engineering
Departments

Sales
Departments

Manufacturing
Departments

Engineering departments“Continuously implementing theidea of ‘Design determines everything’”
We will accurately grasp customer
requirements to create “Designs thatare easy to understand and manufacture and that prevent mistakes.”
Manufacturing departments“Preventing the recurrence ofclaims and ensuring the quality of
new products”
In the course of Monozukuri, we will“build in” quality and develop our
personnel by sharing quality techniques and skills to establish a global
quality control system.

Most of NTN’s manufacturing facilities have
“ISO/TS 16949: 2002” certification, which is a global automotive quality standard. This standard isfor the automobile industry and is reportedly themost stringent in the world. It sets out quality system requirements with respect to design, R&D,
manufacturing, installation, and service.

12●NTN Corporate Social Responsibility Report 2006

Products that support reliability and safety● Quality Improvement
Conference for suppliers
NTN holds a yearly Quality Improvement Conference for suppliersin order to provide our customers
with products which fulfill theirneeds. At this conference, top management from suppliers is invitedwith the objective of quality improvement. A main theme of the conference is set every year and the resultsof various activities are presented. In
2005, with the theme of “Increasing
workplace vitality”, both NTN and the
suppliers presented the results of activities related to “Using visual controls in the manufacturing workplace”, “Improving quality of boughtin parts and materials”, and“Activities to reduce quality defects”.
Moreover, a lecture titled “The role ofmanagers and supervisors in increasing workplace vitality” was presented, and attendees were reminded of the importance of the role ofmanagers and supervisors.

Sales departments“To provide what the customer
needs”
We will constantly work to grasp
subtle changes in customer needs
and by sharing these needs within
the company improve customer satisfaction.

ISO/TS 16949 Certification

Today, the key words that draw our attention in our everyday lives are “reliability” and “safety”. NTN has
strived to develop products incorporating these key concepts since its early years. NTN technology, which
supports reliability and safety, has produced a variety of product families, and with sure-footed experiencein cutting-edge science and technology fields, we continue to receive commendations from customers.

The purpose of the standard is to provide highquality products to worldwide automobile users
through kaizen to prevent defects from happening,by preventing supply chain troubles, and by reducing quality variations and waste. As this standard
focuses on customer satisfaction, certification inthis standard makes us ready to access the automobile industries of the world.

● Continuing efforts with “highspeed and safety”
Ensuring safety in an era of highspeed railways has become increasingly important. NTN’s bearing technology excels in railcar bearings, too.
These include the “Megaohm” primary motor bearings used in the‘Nozomi’ bullet trains, “drive unit
bearings” used to properly transmit
drive power to the rail car axles, “axlebearings” that promise a comfortable
trip, and “RCT bearings” used by railways all over the world. This diverse
product lineup continues to ensure
the safety of railcars in Japan andworldwide.

while rotating at 10,000 revolutions
per minute in a 200°C environment.
Both products are produced at specialized plants, and each and every
bearing receives non-destructive
testing so that high quality and reliability are achieved. This technicalexcellence has been recognized, and
NTN is Japan’s only certified supplierfor General Electric Aircraft Engines (GEAE).

● We first tackled extreme
environments in the 1970s
It was in the 1970s that we firststarted on the development of abearing for rocket engine turbo
pumps. A bearing that can rotate at
an ultra-high speed of 50,000 revolution per minute in a -253°C liquidhydrogen environment without
using oil or grease was theultimate challenge for extreme environments. Since
then, NTN-brand bearings
have contributed to Japan’s space development
and support the success ofdomestic rocket launches.

®JAXA● We support the reliability ofjumbo jet engines
In the engines of jumbo jets thatcarry over 500 people, you can findNTN-brand bearings. “Three-point
contact ball bearings” and“cylindrical roller bearings” provide
travelers with a safe and steady trip,

NTN Corporate Social Responsibility Report 2006●13

Working with Individuals and Society

We believe that quality is the essence of NTN’s corporate brand, and we are constantly
working to realize “dramatic increases in quality”. By connecting these efforts to productmanufacturing, we respond accurately to the diverse needs of the market, satisfying customers’ needs and creating trust.

Working with Individuals and Society

For Customers“30° PTJ” with World’s
Largest Operating Angle
for Crossover SUVs

Research and Development“High-Load Capacity
Long life
Tapered Roller Hub Bearings” for SUVs
High

High-Speed, High-Quality Increased
productivity“Color Filter Repair Device”

Largest angle ever for a tripodtype plunging constant velocity
joint

rigidity
Maximizing the numberof rollers to attain long service
life and high rigidity

Making quick, high-quality repairs

In response to the diversifying
needs for crossover SUVs and othervehicles, NTN has realized theworld’s largest operating angle of 30°
for a tripod-type plunging constantvelocity joint while maintaining the
low-vibration characteristics of our
PTJ without increasing outer diameter.

NTN has developed a “high-load
capacity tapered roller hub bearing”
that provides longer service life andhigher rigidity for pickup trucks andSUVs, where conditions are severe.
By increasing the number of rollers
to the physical limit while keeping thesame outer diameter dimension has
resulted in 20% longer service lifeand 7% higher rigidity over conventional models.

Highfunctionality

NTN has developed a color filter repair device that repairs faulty sectionsof liquid crystal display (LCD) color filters with improved quality and speed.
This device is ideal for larger, higherprecision flat panel displays.
By using our own high-speed repair
device and by specially processing
the repair coating needle, repair times
have been reduced by 70%, and repair quality has been improved.

The center of NTN’s global research and development is in Japan,
and takes place in the New ProductDevelopment R&D Center (Iwata
City, Shizuoka Pref.) and the Elemental Technological R&D Center (Kuwana City, Mie Pref.). At the New Product Development R&D Center, thedevelopment of next-generation
products takes place, while at the
Elemental Technological R&D Cen-ter, fundamental technical development in the fields of tribology andmaterials science allows NTN’s new
products and technologies to betransmitted to the world.
Both locations are engaged in developing environmentally focused
products and technology; below,
NTN’s R&D structure and approach
are introduced through an interview
with Minoru Suzuki, an engineer in-

Working toward a society of electric andfuel cell vehicles

Minoru Suzuki

Cutting-Edge New Product Development

Highefficiency

Automotive CVT with aunique, simple, and efficient construction
NTN has developed the MonoringTM
CVT, a unique continuously variabletransmission (CVT) for automobiles
with a unique construction.
The MonoringTM CVT has a uniquestructure that previous types neverhad: the gear mechanism consists ofa small number of parts, and it does
not require an external hydraulic control apparatus for shifting. It is able toachieve high transmission efficiency.

“Magnetic Array-Type
Rotation Sensor”
World’s first compact
high-precision rotation
angle detection sensor

New Product Development Dept.,
New Product Development R&D
CenterHighfunctionality
Compact
size

NTN, in cooperation with Shizuoka
University, has jointly developed a“magnetic array-type rotation sensor” that is compact yet can measure detect rotation angles with a prethcision of 0.36°(1/1000 of a rotation).
The newly-developed sensor hasmagnetic sensor elements, an AD
conversion circuit, and an angle calculation circuit integrated on a
4.2mm square sensor chip to simultaneously reduce size and improvefunctionality.

volved with the “in-wheel motor typeaxle unit” at the New Product Development R&D Center.

Development of the in-wheel motor type axle unit

● There seems to be a great deal ofinterest in fuel cell vehicles andelectric vehicles for the next generation of vehicles, doesn’t there?

“MonoringTM CVT”

Working with Individuals and Society

New Products that Support the Environment and Safety“Intelligent Axle Unit”

SafetyAccurate and detailed
vehicle stability control
NTN is currently carrying out thepractical application and development of an “intelligent axle unit”
made up of sensors used in vehicle
safety control systems, a hub bearing, and a constant velocity joint.
By incorporating force detection
sensors into the hub bearing andconstant velocity joint, the sensor information related to cornering force
and drive force can be used to attain
more detailed and accurate vehicle
stability control.
Constant velocity joint
Hub bearing

Because of their high environmental
performance in terms of “no exhaust”
and “energy savings from high energy
efficiency”, much is expected of electric vehicles and fuel cell vehicles as
next-generation vehicles. Part of thedrive mechanism that goes into thewheel is a motor called an “in-wheel
motor” integrated into each wheel.
● What kind of advantages does
this have?

The in-wheel motor method has no
motor inside the vehicle, resulting in agreat deal of interior space. This
makes it possible, for example, forsomeone in a wheelchair to go right
into the vehicle. Also, as each wheel
can be driven independently, fine driving control will be realized. The result
will be increased vehicle safety, so you
can say that a high level of safety will
be attained.

● Are there any drawbacks?

The mass below the springs will increase, so there is a risk that driving
comfort will decrease. For in-wheel
motors to take off, there is a need to
first resolve this problem.
● How is development progressing?

We are currently developing an inwheel motor type axle unit that is
made up of a high-speed high-efficiency reduction mechanism and a motor.
Our company is proficient in the fields
of automotive hub bearings and inbearing technology; these are key
technologies for miniaturizing the unit.
We want to fully maximize basic technology to develop the products needed for next-generation vehicles.
● Please tell us what your ultimate
goals are.

They are to increase and develop the
performance of vehicles as personaltransportation methods and to conserve the global environment. I’d liketo see NTN’s unique technicalstrengths contribute to achieving bothof these themes.

Magnetic array-type rotation sensor (left) Ball bearing
with magnetic array-type rotation sensor (right)

14●NTN Corporate Social Responsibility Report 2006

NTN Corporate Social Responsibility Report 2006●15

Working with Individuals and Society

For Customers“30° PTJ” with World’s
Largest Operating Angle
for Crossover SUVs

Research and Development“High-Load Capacity
Long life
Tapered Roller Hub Bearings” for SUVs
High

High-Speed, High-Quality Increased
productivity“Color Filter Repair Device”

Largest angle ever for a tripodtype plunging constant velocity
joint

rigidity
Maximizing the numberof rollers to attain long service
life and high rigidity

Making quick, high-quality repairs

In response to the diversifying
needs for crossover SUVs and othervehicles, NTN has realized theworld’s largest operating angle of 30°
for a tripod-type plunging constantvelocity joint while maintaining the
low-vibration characteristics of our
PTJ without increasing outer diameter.

NTN has developed a “high-load
capacity tapered roller hub bearing”
that provides longer service life andhigher rigidity for pickup trucks andSUVs, where conditions are severe.
By increasing the number of rollers
to the physical limit while keeping thesame outer diameter dimension has
resulted in 20% longer service lifeand 7% higher rigidity over conventional models.

Highfunctionality

NTN has developed a color filter repair device that repairs faulty sectionsof liquid crystal display (LCD) color filters with improved quality and speed.
This device is ideal for larger, higherprecision flat panel displays.
By using our own high-speed repair
device and by specially processing
the repair coating needle, repair times
have been reduced by 70%, and repair quality has been improved.

The center of NTN’s global research and development is in Japan,
and takes place in the New ProductDevelopment R&D Center (Iwata
City, Shizuoka Pref.) and the Elemental Technological R&D Center (Kuwana City, Mie Pref.). At the New Product Development R&D Center, thedevelopment of next-generation
products takes place, while at the
Elemental Technological R&D Cen-ter, fundamental technical development in the fields of tribology andmaterials science allows NTN’s new
products and technologies to betransmitted to the world.
Both locations are engaged in developing environmentally focused
products and technology; below,
NTN’s R&D structure and approach
are introduced through an interview
with Minoru Suzuki, an engineer in-

Working toward a society of electric andfuel cell vehicles

Minoru Suzuki

Cutting-Edge New Product Development

Highefficiency

Automotive CVT with aunique, simple, and efficient construction
NTN has developed the MonoringTM
CVT, a unique continuously variabletransmission (CVT) for automobiles
with a unique construction.
The MonoringTM CVT has a uniquestructure that previous types neverhad: the gear mechanism consists ofa small number of parts, and it does
not require an external hydraulic control apparatus for shifting. It is able toachieve high transmission efficiency.

“Magnetic Array-Type
Rotation Sensor”
World’s first compact
high-precision rotation
angle detection sensor

New Product Development Dept.,
New Product Development R&D
CenterHighfunctionality
Compact
size

NTN, in cooperation with Shizuoka
University, has jointly developed a“magnetic array-type rotation sensor” that is compact yet can measure detect rotation angles with a prethcision of 0.36°(1/1000 of a rotation).
The newly-developed sensor hasmagnetic sensor elements, an AD
conversion circuit, and an angle calculation circuit integrated on a
4.2mm square sensor chip to simultaneously reduce size and improvefunctionality.

volved with the “in-wheel motor typeaxle unit” at the New Product Development R&D Center.

Development of the in-wheel motor type axle unit

● There seems to be a great deal ofinterest in fuel cell vehicles andelectric vehicles for the next generation of vehicles, doesn’t there?

“MonoringTM CVT”

Working with Individuals and Society

New Products that Support the Environment and Safety“Intelligent Axle Unit”

SafetyAccurate and detailed
vehicle stability control
NTN is currently carrying out thepractical application and development of an “intelligent axle unit”
made up of sensors used in vehicle
safety control systems, a hub bearing, and a constant velocity joint.
By incorporating force detection
sensors into the hub bearing andconstant velocity joint, the sensor information related to cornering force
and drive force can be used to attain
more detailed and accurate vehicle
stability control.
Constant velocity joint
Hub bearing

Because of their high environmental
performance in terms of “no exhaust”
and “energy savings from high energy
efficiency”, much is expected of electric vehicles and fuel cell vehicles as
next-generation vehicles. Part of thedrive mechanism that goes into thewheel is a motor called an “in-wheel
motor” integrated into each wheel.
● What kind of advantages does
this have?

The in-wheel motor method has no
motor inside the vehicle, resulting in agreat deal of interior space. This
makes it possible, for example, forsomeone in a wheelchair to go right
into the vehicle. Also, as each wheel
can be driven independently, fine driving control will be realized. The result
will be increased vehicle safety, so you
can say that a high level of safety will
be attained.

● Are there any drawbacks?

The mass below the springs will increase, so there is a risk that driving
comfort will decrease. For in-wheel
motors to take off, there is a need to
first resolve this problem.
● How is development progressing?

We are currently developing an inwheel motor type axle unit that is
made up of a high-speed high-efficiency reduction mechanism and a motor.
Our company is proficient in the fields
of automotive hub bearings and inbearing technology; these are key
technologies for miniaturizing the unit.
We want to fully maximize basic technology to develop the products needed for next-generation vehicles.
● Please tell us what your ultimate
goals are.

They are to increase and develop the
performance of vehicles as personaltransportation methods and to conserve the global environment. I’d liketo see NTN’s unique technicalstrengths contribute to achieving bothof these themes.

Magnetic array-type rotation sensor (left) Ball bearing
with magnetic array-type rotation sensor (right)

14●NTN Corporate Social Responsibility Report 2006

NTN Corporate Social Responsibility Report 2006●15

Working with Individuals and Society

For Suppliers

Promoting good partnerships● Procurement Policy● 2006 Procurement Policy

The procurement of parts and materials is a critical issue for our expanding global production activities.
Thus, strengthening our partnerships
with suppliers and comprehensively
increasing workplace vitality is important for our manufacturing activities.

During fiscal 2006, with “securing
stable quality of procured components and materials” and “reducing
procurement costs” as our themes,
we will engage in continuous improvement with our suppliers to“build in” quality from the“Monozukuri” point of view andthrough VA*1 and VE*2 activities. In
addition, we will promote strategic
alliances for mutual development.

1. To procure and supply better
products more cheaply fromand to the world
2. To increase corporate value
side-by-side with our suppliers*1 VA: Value Analysis
This is a methodical process in which cost, design,and specifications are changed and alternative products are contemplated based on a consideration of
the balance between cost and function.

■ VA/VE activities
Measures
Activities centered on VA/VE
Increasing forging yields, which also
contributes to turning efficiency
Establishing an optimized processing
sequence (from raw material to turning)
Waste elimination activities done together
with suppliers.

Inclusion of Suppliers in Environmental Management
In an effort to include our suppliersin environmental management, we
preferentially procure parts and material from suppliers who are proactively working to improve the environmental aspects of their operations
and we request that our primary
suppliers obtain ISO14001 certification or the Eco Stage certification,
which is meant for small- to medium-sized firms. For those suppliers
that request it, our subsidiary NTN
Technical Service Corp. carries out
certification support for the Eco
Stage and the Eco Stage Introductory Level certifications.

Promotion Structure

16

NTN Corporate Social Responsibility Report 2006

ISO14001 46%
Certification
planned 30%

Eco Stage
Introductory Level 1%

Eco Stage 10%“Taking on the challenge ofobtaining the ’Eco Stage
Introductory Level’ certification”

Mr. Sokoku Nakamura

The cooperation of the suppliers
who supply components and materials is critical to provide the market
with safe products that are not a burden on the environment.

(As of May 1, 2006)
No date set forcertification 13%

Primary department: Cost Planning Dept.
Members: Design Dept. and each Plant● Supplier Meetings● Green Procurement

Eco Stage is an environmental
management evaluation and support
system originally conceived for smallto medium-sized firms. Our company
proposed an “abridged version” withan even lighter certification workload
and this has been realized as the“Eco Stage Introductory Level” forsmall-scale businesses, which has
been adopted as a trial certificationlevel. Our company promotes this Introductory Level for suppliers with 10
employees or less, and 2 companies
have obtained this certification so far.

■ Environmental Certification Statusof our Primary Suppliers(332 companies in total)

Promoting the Introduction of Eco Stage*2 VE: Value Engineering
This is a sequence of methods used to realize the required functions of a product with the minimum
amount of resources, and in which product value andcost factors are analyzed and product value is increased.

To obtain understanding and cooperation from our primary suppliers regarding our procurement policies, wehold a supplier meeting twice a year
(in March and September). Suppliers
are evaluated in various aspects ofprocurement, such as quality evaluation, cooperation with production(production increases), cooperation
with cost, cooperation with VA,
ISO9001 certification, and ISO14001
certification. In fiscal 2005, we presented awards of excellence andawards for contributing to VA.
Through these meetings, we areworking to create good linkages with
our suppliers and to strengthen ourpartnerships.

● Promoting an Introductory Eco
Stage

All raw materials used in the partsand materials used by our company
are subject to our green procurement policies. To respond to the European Union’s End-of-Life Vehicle(ELV*1) directive, the RoHS*2 directive(for electric and electronic products),
and the green procurement standards of our customers, we holdsupplier meetings to reduce the environmental burden of our procured
parts at the parts manufacturing andraw material procurement stages.

Our company and Nakamura Seisakusho(Nishinari Ward, Osaka City) have had a business
relationship for over 20 years. Nakamura primarily
machines bearing materials.

From Nakamura Seisakusho“We’ve always had this preconceived notionthat environmental management and ISO certification is something difficult, but the “Eco Stage
Introductory Level” has a format that even asmall number of people can do. It’s also easy tounderstand and it’s easy to get into. From here
on, we will be making an effort to improve ourmanagement by setting targets to reduce waste
products, defect rates, etc., and we want to link
this effort to results.”*1 Substances targeted by the ELV directive (End-of-Life
Vehicles): lead, mercury, cadmium, hexavalent chromium*2 Substances targeted by the RoHS directive (Restriction on the use of certain Hazardous Substances inelectrical and electronic equipment): In addition to
those targeted by the ELV directive, 2 types of brominated flame retardants are included.

NTN Corporate Social Responsibility Report 2006

17

Working with Individuals and Society

We are working to strengthen our partnerships with suppliers in order to carry out the“Monozukuri” through which we can provide reliability and safety. The “Monozukuri” of eachproduct is directly connected to the reliability and safety required by each of our customer
manufacturers. To ensure this reliability and safety, we have to establish a good business
relationship and close communication with our suppliers. We are cooperating with our
suppliers regarding the procurement of parts and materials necessary for production, ensuring
quality, cost, and delivery, as well as environmental conservation, which are all important
themes to us.

Working with Individuals and Society

For Suppliers

Promoting good partnerships● Procurement Policy● 2006 Procurement Policy

The procurement of parts and materials is a critical issue for our expanding global production activities.
Thus, strengthening our partnerships
with suppliers and comprehensively
increasing workplace vitality is important for our manufacturing activities.

During fiscal 2006, with “securing
stable quality of procured components and materials” and “reducing
procurement costs” as our themes,
we will engage in continuous improvement with our suppliers to“build in” quality from the“Monozukuri” point of view andthrough VA*1 and VE*2 activities. In
addition, we will promote strategic
alliances for mutual development.

1. To procure and supply better
products more cheaply fromand to the world
2. To increase corporate value
side-by-side with our suppliers*1 VA: Value Analysis
This is a methodical process in which cost, design,and specifications are changed and alternative products are contemplated based on a consideration of
the balance between cost and function.

■ VA/VE activities
Measures
Activities centered on VA/VE
Increasing forging yields, which also
contributes to turning efficiency
Establishing an optimized processing
sequence (from raw material to turning)
Waste elimination activities done together
with suppliers.

Inclusion of Suppliers in Environmental Management
In an effort to include our suppliersin environmental management, we
preferentially procure parts and material from suppliers who are proactively working to improve the environmental aspects of their operations
and we request that our primary
suppliers obtain ISO14001 certification or the Eco Stage certification,
which is meant for small- to medium-sized firms. For those suppliers
that request it, our subsidiary NTN
Technical Service Corp. carries out
certification support for the Eco
Stage and the Eco Stage Introductory Level certifications.

Promotion Structure

16

NTN Corporate Social Responsibility Report 2006

ISO14001 46%
Certification
planned 30%

Eco Stage
Introductory Level 1%

Eco Stage 10%“Taking on the challenge ofobtaining the ’Eco Stage
Introductory Level’ certification”

Mr. Sokoku Nakamura

The cooperation of the suppliers
who supply components and materials is critical to provide the market
with safe products that are not a burden on the environment.

(As of May 1, 2006)
No date set forcertification 13%

Primary department: Cost Planning Dept.
Members: Design Dept. and each Plant● Supplier Meetings● Green Procurement

Eco Stage is an environmental
management evaluation and support
system originally conceived for smallto medium-sized firms. Our company
proposed an “abridged version” withan even lighter certification workload
and this has been realized as the“Eco Stage Introductory Level” forsmall-scale businesses, which has
been adopted as a trial certificationlevel. Our company promotes this Introductory Level for suppliers with 10
employees or less, and 2 companies
have obtained this certification so far.

■ Environmental Certification Statusof our Primary Suppliers(332 companies in total)

Promoting the Introduction of Eco Stage*2 VE: Value Engineering
This is a sequence of methods used to realize the required functions of a product with the minimum
amount of resources, and in which product value andcost factors are analyzed and product value is increased.

To obtain understanding and cooperation from our primary suppliers regarding our procurement policies, wehold a supplier meeting twice a year
(in March and September). Suppliers
are evaluated in various aspects ofprocurement, such as quality evaluation, cooperation with production(production increases), cooperation
with cost, cooperation with VA,
ISO9001 certification, and ISO14001
certification. In fiscal 2005, we presented awards of excellence andawards for contributing to VA.
Through these meetings, we areworking to create good linkages with
our suppliers and to strengthen ourpartnerships.

● Promoting an Introductory Eco
Stage

All raw materials used in the partsand materials used by our company
are subject to our green procurement policies. To respond to the European Union’s End-of-Life Vehicle(ELV*1) directive, the RoHS*2 directive(for electric and electronic products),
and the green procurement standards of our customers, we holdsupplier meetings to reduce the environmental burden of our procured
parts at the parts manufacturing andraw material procurement stages.

Our company and Nakamura Seisakusho(Nishinari Ward, Osaka City) have had a business
relationship for over 20 years. Nakamura primarily
machines bearing materials.

From Nakamura Seisakusho“We’ve always had this preconceived notionthat environmental management and ISO certification is something difficult, but the “Eco Stage
Introductory Level” has a format that even asmall number of people can do. It’s also easy tounderstand and it’s easy to get into. From here
on, we will be making an effort to improve ourmanagement by setting targets to reduce waste
products, defect rates, etc., and we want to link
this effort to results.”*1 Substances targeted by the ELV directive (End-of-Life
Vehicles): lead, mercury, cadmium, hexavalent chromium*2 Substances targeted by the RoHS directive (Restriction on the use of certain Hazardous Substances inelectrical and electronic equipment): In addition to
those targeted by the ELV directive, 2 types of brominated flame retardants are included.

NTN Corporate Social Responsibility Report 2006

17

Working with Individuals and Society

We are working to strengthen our partnerships with suppliers in order to carry out the“Monozukuri” through which we can provide reliability and safety. The “Monozukuri” of eachproduct is directly connected to the reliability and safety required by each of our customer
manufacturers. To ensure this reliability and safety, we have to establish a good business
relationship and close communication with our suppliers. We are cooperating with our
suppliers regarding the procurement of parts and materials necessary for production, ensuring
quality, cost, and delivery, as well as environmental conservation, which are all important
themes to us.

Working with Individuals and Society

For Employees

1. Imparting skills and increasing workplace vitality especially in the manufacturing workplace
2. Human resource training as professionals
3. Strengthening communications andlinkage among research, engineering,sales, and production department
4. Improving business skills
5. Expanding hands-on educational/
training programs
6. Increasing appropriate education
7. Promoting a safe and healthy workplace

Establishing a Human Resource System in which Ability can be Maximized
Correctly evaluating the abilities
and performance of employees andrewarding them fairly not only stimulates our human resources, but also
strengthens the organization as awhole. Creating this motivation is oneof our most critical management issues for our growth.
NTN’s Human Resource system isbased on a philosophy of objectively
developing ability in employees.

● Internal systems that takeadvantage of individuality
Our self-declaration system in which
employees can state their preferredoccupations and employment locations once a year to their superiors or
to the Human Resources Department,
and our in-house staff recruitment system that is used to recruit individuals
when a new project is started up areboth systems that draw out new skills
in our employees based on their motivation and individuality.

Developing management ability

Mastering the specialized knowledge and skills needed for work
Knowledge andskill to be mastered

Developing practical management ability

Upgrading business capabilities

Ability to bemasteredCreating the foundation■ Human Resources Development Map
Management
ability development training

Training for enriching
and improving
management■ Competence observation

system
■ Employee evaluation system■ Self-declaration system

Businessmanagement
training
Practical
management
job training
Practical
supervisory
training
Practical
upgrading job
training for midlevel employees

Introductory
training andeducation for
new employees
Rank-based
training■ Accelerated promotion

systemTraining and OJT for ■ Interview system■ Assessment system
enriching andimproving work
(Developed by NTN)
management■ JR/CDP(Development of work skills
based on personnel transfer)■ Company lecturer system■ OJT system
Training and OJT
related to mastering ■ Award systemand enriching the■ Job skills redevelopment
knowledge related
to respond to workforce
to the current
changes
assignment■ Self-development
support system
Job training and■ Overseas trainee system
OJT related to basic■
Overseas study /skills and knowledge
scholarship system
Knowledge
and skillreqired forwork
execution

18 NTN Corporate Social Responsibility Report 2006

Human resource
systems

Career support
We methodically work to
help our employees form
career choices based on
their training and experience. Based on thesefactors, various systems
such as collective job
training opportunities are
executed, and throughthis, we support our employees in reshaping theircareers.

Setting career targets
Job training is based on the ability
level required by each qualification andclass. The job training for 2nd–year
employees and the job training done
after an employee is promoted to achief position both have curriculums inwhich career targets can be set.
CD45 seminar
We carry out Career Development
45 seminars where employees examine their work and individual skills
to set targets for their working life. An
action plan is established and theemployee’s prospects are clarified aswell.
In this way, we are also responding
to post-retirement employment
needs in Japan.

“Monozukuri means Developing the Individual” iswhere it starts…
our personnel and vitalizing ourworkplaces based on the thinking
that “Monozukuri means developing the individual”

NTN is striving to realize “theworld’s best quality”, “low cost”,“and shorter production lead times”(the time from when a product isordered to when it’s delivered) andto increase corporate value. Whatthese efforts is focused on is“people”. At NTN, we are training

Developing the Individual at NTN

Vitalizing
our human
resources

・ System for sharing
knowledge
・ A thoroughly resultsbased philosophy
・ Global training of
personnel

Making our
employees
moreefficient・ Diversificationof hiring modes
・ Promoting theemployment of people
with appropriate skills
・ Optimization of labor
conditions

Monozukuri at NTN● Our efforts to “develop theindividual”
Promoting increased skill andmulti-skilling

Sharing practical and technicalskillsWe are working to achieve aneven higher level of technical mastery than before (increased skill)
and to make each engineer be able
to carry out more than one type ofwork (multi-skilling).

We have introduced a "Meister"
system, which provides an organized way for experienced engineers
to transfer their technology andskills to their colleagues.

■ Skill management radar chart＊＊Section ＊＊Plant

Hanako Monozukuri■ Meister system

Qualifications
Super-finishing
the outer ring

Super-finishingthe inner ring

5
4
3
2
1

Grinding the OD

0

Improving workplace vitality
With the slogan “Let’s increase
workplace vitality and show our
workplace creativity” at our manufacturing sites, we are promoting“profitability circle activities”. Currently there are over 470 circles active in the NTN Group, which arevigorously working to raise quality
and productivity by improving theworkplace.
■ Company-wide circle conference

Grinding the ID

Grinding the
Combination
inner ring raceway
grinding
Grinding the outer ring raceway
My objectives for this month

Photograph■ Skill training area
■ Number of circles by site (October 2005)

Class：＊Experience：＊Years■ Promoting skill qualifications
Unit: People

500
NO. OF PEOPLE WHO OBTAINEDQUALIFICATION DURING EACH FY

400

500

2,000
1,600

NO. OF QUALIFIED PEOPLE

300

1,200
212

200
100
0

800

59

83

2003

2004

400

2005

2006

Total No. of qualified people

Meanwhile, in Japan, we are actively making an effort to do mid-career
hiring and to promote women. We
are encouraging our female employees to maximize and more-fully demonstrate their abilities. For all employees, we are matching training to
the competence of each individual sothese employees can work in a variety of workplaces.

Our company started promoting
the globalization of our business early on, and our corporate activities
have an eye on the world market.
These activities and efforts will befurther intensified.
Based on this situation, we aremaking an effort to develop individuals who embody and who are able
to put into practice our philosophy“For New Technology Network”(connecting the world with new technology).

Fiscal 2006 Human Resource Training Policy

By “developing the individual” through “Monozukuri”, NTN is promoting a framework in which eachindividual can maximize and demonstrate their abilities. As part of creating a work environment inwhich employees can maximize and demonstrate their abilities, we are acting to connect“developing the individual” to “Monozukuri”. Focusing on imparting the practical and technical skills
that our company has cultivated up until now, we are responding to expected changes to the corporate operating environment and we are creating a stable but flexible organization ready for a new future thereby creating a strong foundation for the corporation.

Total No. of people who obtained
qualifications during each FY

The Human Resource Training and Employment Situation

Working with Individuals and Society

It is “People” who support NTN’s daily business activities through their efforts to produce a wide variety of products through their individual efforts. It is also our employees, each and every one of them,
who will share and increase NTN’s technology and skills and who will shoulder the task of carving
out a new age for our company. To make our structure a robust one, we are establishing a system
where individual ability can be increased and maximized, creating a workplace environment where all
employees can work with a sense of pride and satisfaction.

Site

No. of circles

Kuwana Works
Iwata WorksOkayama Works
Takarazuka Works
Nagano WorksNTN Kongo
NTN Engineering PlasticsNTN Powder Metal
NTN Mikumo
Total

95
182
76
40
19
20
10
10
12
464

0
(FY)

NTN Corporate Social Responsibility Report 2006

19

Working with Individuals and Society

For Employees

1. Imparting skills and increasing workplace vitality especially in the manufacturing workplace
2. Human resource training as professionals
3. Strengthening communications andlinkage among research, engineering,sales, and production department
4. Improving business skills
5. Expanding hands-on educational/
training programs
6. Increasing appropriate education
7. Promoting a safe and healthy workplace

Establishing a Human Resource System in which Ability can be Maximized
Correctly evaluating the abilities
and performance of employees andrewarding them fairly not only stimulates our human resources, but also
strengthens the organization as awhole. Creating this motivation is oneof our most critical management issues for our growth.
NTN’s Human Resource system isbased on a philosophy of objectively
developing ability in employees.

● Internal systems that takeadvantage of individuality
Our self-declaration system in which
employees can state their preferredoccupations and employment locations once a year to their superiors or
to the Human Resources Department,
and our in-house staff recruitment system that is used to recruit individuals
when a new project is started up areboth systems that draw out new skills
in our employees based on their motivation and individuality.

Developing management ability

Mastering the specialized knowledge and skills needed for work
Knowledge andskill to be mastered

Developing practical management ability

Upgrading business capabilities

Ability to bemasteredCreating the foundation■ Human Resources Development Map
Management
ability development training

Training for enriching
and improving
management■ Competence observation

system
■ Employee evaluation system■ Self-declaration system

Businessmanagement
training
Practical
management
job training
Practical
supervisory
training
Practical
upgrading job
training for midlevel employees

Introductory
training andeducation for
new employees
Rank-based
training■ Accelerated promotion

systemTraining and OJT for ■ Interview system■ Assessment system
enriching andimproving work
(Developed by NTN)
management■ JR/CDP(Development of work skills
based on personnel transfer)■ Company lecturer system■ OJT system
Training and OJT
related to mastering ■ Award systemand enriching the■ Job skills redevelopment
knowledge related
to respond to workforce
to the current
changes
assignment■ Self-development
support system
Job training and■ Overseas trainee system
OJT related to basic■
Overseas study /skills and knowledge
scholarship system
Knowledge
and skillreqired forwork
execution

18 NTN Corporate Social Responsibility Report 2006

Human resource
systems

Career support
We methodically work to
help our employees form
career choices based on
their training and experience. Based on thesefactors, various systems
such as collective job
training opportunities are
executed, and throughthis, we support our employees in reshaping theircareers.

Setting career targets
Job training is based on the ability
level required by each qualification andclass. The job training for 2nd–year
employees and the job training done
after an employee is promoted to achief position both have curriculums inwhich career targets can be set.
CD45 seminar
We carry out Career Development
45 seminars where employees examine their work and individual skills
to set targets for their working life. An
action plan is established and theemployee’s prospects are clarified aswell.
In this way, we are also responding
to post-retirement employment
needs in Japan.

“Monozukuri means Developing the Individual” iswhere it starts…
our personnel and vitalizing ourworkplaces based on the thinking
that “Monozukuri means developing the individual”

NTN is striving to realize “theworld’s best quality”, “low cost”,“and shorter production lead times”(the time from when a product isordered to when it’s delivered) andto increase corporate value. Whatthese efforts is focused on is“people”. At NTN, we are training

Developing the Individual at NTN

Vitalizing
our human
resources

・ System for sharing
knowledge
・ A thoroughly resultsbased philosophy
・ Global training of
personnel

Making our
employees
moreefficient・ Diversificationof hiring modes
・ Promoting theemployment of people
with appropriate skills
・ Optimization of labor
conditions

Monozukuri at NTN● Our efforts to “develop theindividual”
Promoting increased skill andmulti-skilling

Sharing practical and technicalskillsWe are working to achieve aneven higher level of technical mastery than before (increased skill)
and to make each engineer be able
to carry out more than one type ofwork (multi-skilling).

We have introduced a "Meister"
system, which provides an organized way for experienced engineers
to transfer their technology andskills to their colleagues.

■ Skill management radar chart＊＊Section ＊＊Plant

Hanako Monozukuri■ Meister system

Qualifications
Super-finishing
the outer ring

Super-finishingthe inner ring

5
4
3
2
1

Grinding the OD

0

Improving workplace vitality
With the slogan “Let’s increase
workplace vitality and show our
workplace creativity” at our manufacturing sites, we are promoting“profitability circle activities”. Currently there are over 470 circles active in the NTN Group, which arevigorously working to raise quality
and productivity by improving theworkplace.
■ Company-wide circle conference

Grinding the ID

Grinding the
Combination
inner ring raceway
grinding
Grinding the outer ring raceway
My objectives for this month

Photograph■ Skill training area
■ Number of circles by site (October 2005)

Class：＊Experience：＊Years■ Promoting skill qualifications
Unit: People

500
NO. OF PEOPLE WHO OBTAINEDQUALIFICATION DURING EACH FY

400

500

2,000
1,600

NO. OF QUALIFIED PEOPLE

300

1,200
212

200
100
0

800

59

83

2003

2004

400

2005

2006

Total No. of qualified people

Meanwhile, in Japan, we are actively making an effort to do mid-career
hiring and to promote women. We
are encouraging our female employees to maximize and more-fully demonstrate their abilities. For all employees, we are matching training to
the competence of each individual sothese employees can work in a variety of workplaces.

Our company started promoting
the globalization of our business early on, and our corporate activities
have an eye on the world market.
These activities and efforts will befurther intensified.
Based on this situation, we aremaking an effort to develop individuals who embody and who are able
to put into practice our philosophy“For New Technology Network”(connecting the world with new technology).

Fiscal 2006 Human Resource Training Policy

By “developing the individual” through “Monozukuri”, NTN is promoting a framework in which eachindividual can maximize and demonstrate their abilities. As part of creating a work environment inwhich employees can maximize and demonstrate their abilities, we are acting to connect“developing the individual” to “Monozukuri”. Focusing on imparting the practical and technical skills
that our company has cultivated up until now, we are responding to expected changes to the corporate operating environment and we are creating a stable but flexible organization ready for a new future thereby creating a strong foundation for the corporation.

Total No. of people who obtained
qualifications during each FY

The Human Resource Training and Employment Situation

Working with Individuals and Society

It is “People” who support NTN’s daily business activities through their efforts to produce a wide variety of products through their individual efforts. It is also our employees, each and every one of them,
who will share and increase NTN’s technology and skills and who will shoulder the task of carving
out a new age for our company. To make our structure a robust one, we are establishing a system
where individual ability can be increased and maximized, creating a workplace environment where all
employees can work with a sense of pride and satisfaction.

Site

No. of circles

Kuwana Works
Iwata WorksOkayama Works
Takarazuka Works
Nagano WorksNTN Kongo
NTN Engineering PlasticsNTN Powder Metal
NTN Mikumo
Total

95
182
76
40
19
20
10
10
12
464

0
(FY)

NTN Corporate Social Responsibility Report 2006

19

Working with Individuals and Society

For Employees

In 1982 we started to employ former and current workers at our affiliates. We did this because we believed it was meaningful from thestandpoint of both the corporationand society to utilize their rich experience, practical skills, technical skills,
and knowledge. Afterward, NTN
Technical Service Corp. (NTS)* undertook the same policy. The core of
NTS is made up of people who
gained work experience and specialized knowledge at NTN, and they
support the work of both NTN and
the NTN Group. Our company willcontinue to promote the continuous
employment and reemployment of
employees.
*Focusing on NTN production sites, NTN
Technical Service Corp. is a 100% owned
subsidiary established in August 1987. It carries out technical support including contract
work, temporary staffing, procurement of
mechanical parts, fabrication and improvementof mechanical devices, and equipment maintenance.

In Japan, in response to the Law
for Measures to Support the Development of the Next Generation
which came into effect in July 2003,
we are implementing a review of ourentire benefits package with an emphasis on children.
Since December 2005, the numberof half-day vacations has been increased to up to 10 days (20 times)
from 6 days (12 times). Our aim in increasing the number of vacation
days is to facilitate the balance between home life and work.
Starting in fiscal 2006, NTN will introduce in Japan the “Mom Back
System” in which people who left
their jobs for family reasons, are actively encouraged to return to employment with the company. Under
this system, women can be rehired
when they determine that their family(or other) situation allows outside
employment. Both of these systems
are aimed to respond to the trend toward fewer children in Japan and tosustain the continued social progressof women.
● Volunteer sabbaticals

sabbatical system in fiscal 2001.
With the volunteer sabbatical system,
employees participating in the Japan
Overseas Cooperative Association
can take a maximum of 28 monthsof paid leave.
We also have a program where
employees are given 5 days of paid
leave to donate bone marrow.
● Measures to prevent sexual
harassment
Sexual harassment violates the human rights of the individual, interfereswith the maximization of ability, anddisrupts the order of the workplace.
To prevent this, in Japan we have
distributed an enlightenment pamphlet to all employees, and we have
had external advisors come in andhold training sessions for management, thus promoting better understanding of sexual harassment andstrengthening NTN’s ability to respond.
Moreover, we have created a special help desk and help line for thosepermanent and temporary employees who have been sexually harassed and we carry out support toresolve issues in the way that one’s
privacy is fully protected.

To encourage our employees to actively participate in public service activities, we introduced a volunteer

Securing the safety of employees
and giving them guidance with respect to managing workplace hygiene and maintaining and improving
health can be considered fundamental for the existence of a company.
Promoting these benefits is a social
responsibility of a corporation.
Based on a “safety comes before
all else” spirit that places an emphasis on human dignity, we are working
to “ensure workplace safety” and“create a healthy and comfortableworkplace environment” to achieveeven safer and even better production activities.

■ Occupational Safety and Health■ Number of workplace accidents

Management System
２.５

Occupational Safety and HealthManagement System
Integrated withManagement

Promoting a proactive response

Company-wide
promotion structure
put in place

Methodical,
continuous, andeffective activities areencouraged

２.０

Frequency● Employing former workers ataffiliates● Beyond Compliance with Japan’s “Next Generation” Law

１.００

Working to increase safety ona fundamental level

２００１ ２００２ ２００３ ２００４ ２００５ (Fiscal year)
Average frequency at NTN
Average frequency for
all industries
Average frequency forthe bearing mfg. industry

Reducing hidden dangers and hazards

Fewer workplace accidents

Increased safety and hygiene level

Number of workplace accidents(fatalities and injuries)
leading to at least 1 day of lost time
* Frequency＝x1,000,000hours
Total actual hours worked● OSHMS certification obtained
In recent years, the decrease in thenumber of occupational accidents
has slowed, and there is a concernthat fewer personnel and personnel
changes have led to weakening
health and hygiene management. This
is why our company is working to become certified in the Occupational
Safety and Health and Management
System (OSHMS)*. In January 2006,
Iwata Works and Kuwana Works obtained this certification. We are working to have 5 more sites certified byMarch 2007.

１.５

０.５

0.16

0.12

Severity rate

To provide an opportunity for our diverse workforce to maximize anddemonstrate each person’s ability,
our company is proceeding to create
a comfortable workplace to work in.

Working with Individuals and Society

Safety, Hygiene and HealthCreating a pleasant workplace

0.08

0.04

*OSHMS is an abbreviation of Occupational
Safety and Health Management System, which is the name of a management system that ensures thatworkers can work in a safe and hygienic environment, and is a national
standard set out by the Ministry of
Health, Labor and Welfare.

0

２００１ ２００２ ２００３ ２００４ ２００５ (Fiscal year)
Average severity rate at NTN
Average severity rate forall industries
Average severity rate forthe bearing mfg. industry* Severity rate＝Actual number of lost days
x1,000 hours
Total actual hours worked*Applies to NTN and the 3 companies in the NTN group.

● Mental health measures● Encouraging workers with disabilities through “Ideal Workshops”
With the belief that helping all people become economically independent is one of the roles of the corporation, we continually employ persons
with disabilities. NTN set up “Ideal
Workshops” at our Iwata, Kuwana,
and Okayama Works with the aim ofcreating a vital and vigorous workplace by accommodating employee
needs. We will not only establish
more “Ideal Workshops”, but we will
enrich the work for persons with disabilities and expand employment opportunities at NTN.

20●NTN Corporate Social Responsibility Report 2006

Iwata Works: Packaging ball bearings

Okayama Works:
Packaging a shipment for export
Kuwana Works:
Entering production progress data

In recent years, mental disorders
and stress have come to be problems recognized by society, and it
has become an important issue forcorporations to address the mental
health of employees.
Based on the Ministry of Health,
Labor and Welfare’s “Guidelines formaintaining and increasing the mental health of workers”, and as a specific way to enrich our care structure,
our company has created a counseling room where employees can talkto counselors on an ongoing basis.
We also conduct “MINI interviews” torespond to the self-care needs of ouremployees; our management andsupervisors attend mental healthseminars to care for our employees.
* MINI is an abbreviation for the Mini-international Neuropsychiatric Interview, which is a
simplified interview that can diagnose depression, panic disorders, and obsessive-compulsive disorders.

● Raising health awareness
Recently we have been working
with health insurance associations toprovide various cancer diagnoses topromote early detection and early
treatment so that our employees can
pay attention to managing their own
health and even increasing theirhealth. To prevent lifestyle-relateddiseases, we have a “High blood sugar improvement program” andwalking activities. NTN also implemented back pain classes to prevent
back pain.
In addition, we have a “vacationand leave system for care and recovery” in place so that our employees
can work with peace of mind. It isdifficult to see from the outside whatkind of health condition each individual is in, but we are working to create a workplace where free and positive communication can take placeso that everyone can look out for one
another.

NTN Corporate Social Responsibility Report 2006

21

Working with Individuals and Society

For Employees

In 1982 we started to employ former and current workers at our affiliates. We did this because we believed it was meaningful from thestandpoint of both the corporationand society to utilize their rich experience, practical skills, technical skills,
and knowledge. Afterward, NTN
Technical Service Corp. (NTS)* undertook the same policy. The core of
NTS is made up of people who
gained work experience and specialized knowledge at NTN, and they
support the work of both NTN and
the NTN Group. Our company willcontinue to promote the continuous
employment and reemployment of
employees.
*Focusing on NTN production sites, NTN
Technical Service Corp. is a 100% owned
subsidiary established in August 1987. It carries out technical support including contract
work, temporary staffing, procurement of
mechanical parts, fabrication and improvementof mechanical devices, and equipment maintenance.

In Japan, in response to the Law
for Measures to Support the Development of the Next Generation
which came into effect in July 2003,
we are implementing a review of ourentire benefits package with an emphasis on children.
Since December 2005, the numberof half-day vacations has been increased to up to 10 days (20 times)
from 6 days (12 times). Our aim in increasing the number of vacation
days is to facilitate the balance between home life and work.
Starting in fiscal 2006, NTN will introduce in Japan the “Mom Back
System” in which people who left
their jobs for family reasons, are actively encouraged to return to employment with the company. Under
this system, women can be rehired
when they determine that their family(or other) situation allows outside
employment. Both of these systems
are aimed to respond to the trend toward fewer children in Japan and tosustain the continued social progressof women.
● Volunteer sabbaticals

sabbatical system in fiscal 2001.
With the volunteer sabbatical system,
employees participating in the Japan
Overseas Cooperative Association
can take a maximum of 28 monthsof paid leave.
We also have a program where
employees are given 5 days of paid
leave to donate bone marrow.
● Measures to prevent sexual
harassment
Sexual harassment violates the human rights of the individual, interfereswith the maximization of ability, anddisrupts the order of the workplace.
To prevent this, in Japan we have
distributed an enlightenment pamphlet to all employees, and we have
had external advisors come in andhold training sessions for management, thus promoting better understanding of sexual harassment andstrengthening NTN’s ability to respond.
Moreover, we have created a special help desk and help line for thosepermanent and temporary employees who have been sexually harassed and we carry out support toresolve issues in the way that one’s
privacy is fully protected.

To encourage our employees to actively participate in public service activities, we introduced a volunteer

Securing the safety of employees
and giving them guidance with respect to managing workplace hygiene and maintaining and improving
health can be considered fundamental for the existence of a company.
Promoting these benefits is a social
responsibility of a corporation.
Based on a “safety comes before
all else” spirit that places an emphasis on human dignity, we are working
to “ensure workplace safety” and“create a healthy and comfortableworkplace environment” to achieveeven safer and even better production activities.

■ Occupational Safety and Health■ Number of workplace accidents

Management System
２.５

Occupational Safety and HealthManagement System
Integrated withManagement

Promoting a proactive response

Company-wide
promotion structure
put in place

Methodical,
continuous, andeffective activities areencouraged

２.０

Frequency● Employing former workers ataffiliates● Beyond Compliance with Japan’s “Next Generation” Law

１.００

Working to increase safety ona fundamental level

２００１ ２００２ ２００３ ２００４ ２００５ (Fiscal year)
Average frequency at NTN
Average frequency for
all industries
Average frequency forthe bearing mfg. industry

Reducing hidden dangers and hazards

Fewer workplace accidents

Increased safety and hygiene level

Number of workplace accidents(fatalities and injuries)
leading to at least 1 day of lost time
* Frequency＝x1,000,000hours
Total actual hours worked● OSHMS certification obtained
In recent years, the decrease in thenumber of occupational accidents
has slowed, and there is a concernthat fewer personnel and personnel
changes have led to weakening
health and hygiene management. This
is why our company is working to become certified in the Occupational
Safety and Health and Management
System (OSHMS)*. In January 2006,
Iwata Works and Kuwana Works obtained this certification. We are working to have 5 more sites certified byMarch 2007.

１.５

０.５

0.16

0.12

Severity rate

To provide an opportunity for our diverse workforce to maximize anddemonstrate each person’s ability,
our company is proceeding to create
a comfortable workplace to work in.

Working with Individuals and Society

Safety, Hygiene and HealthCreating a pleasant workplace

0.08

0.04

*OSHMS is an abbreviation of Occupational
Safety and Health Management System, which is the name of a management system that ensures thatworkers can work in a safe and hygienic environment, and is a national
standard set out by the Ministry of
Health, Labor and Welfare.

0

２００１ ２００２ ２００３ ２００４ ２００５ (Fiscal year)
Average severity rate at NTN
Average severity rate forall industries
Average severity rate forthe bearing mfg. industry* Severity rate＝Actual number of lost days
x1,000 hours
Total actual hours worked*Applies to NTN and the 3 companies in the NTN group.

● Mental health measures● Encouraging workers with disabilities through “Ideal Workshops”
With the belief that helping all people become economically independent is one of the roles of the corporation, we continually employ persons
with disabilities. NTN set up “Ideal
Workshops” at our Iwata, Kuwana,
and Okayama Works with the aim ofcreating a vital and vigorous workplace by accommodating employee
needs. We will not only establish
more “Ideal Workshops”, but we will
enrich the work for persons with disabilities and expand employment opportunities at NTN.

20●NTN Corporate Social Responsibility Report 2006

Iwata Works: Packaging ball bearings

Okayama Works:
Packaging a shipment for export
Kuwana Works:
Entering production progress data

In recent years, mental disorders
and stress have come to be problems recognized by society, and it
has become an important issue forcorporations to address the mental
health of employees.
Based on the Ministry of Health,
Labor and Welfare’s “Guidelines formaintaining and increasing the mental health of workers”, and as a specific way to enrich our care structure,
our company has created a counseling room where employees can talkto counselors on an ongoing basis.
We also conduct “MINI interviews” torespond to the self-care needs of ouremployees; our management andsupervisors attend mental healthseminars to care for our employees.
* MINI is an abbreviation for the Mini-international Neuropsychiatric Interview, which is a
simplified interview that can diagnose depression, panic disorders, and obsessive-compulsive disorders.

● Raising health awareness
Recently we have been working
with health insurance associations toprovide various cancer diagnoses topromote early detection and early
treatment so that our employees can
pay attention to managing their own
health and even increasing theirhealth. To prevent lifestyle-relateddiseases, we have a “High blood sugar improvement program” andwalking activities. NTN also implemented back pain classes to prevent
back pain.
In addition, we have a “vacationand leave system for care and recovery” in place so that our employees
can work with peace of mind. It isdifficult to see from the outside whatkind of health condition each individual is in, but we are working to create a workplace where free and positive communication can take placeso that everyone can look out for one
another.

NTN Corporate Social Responsibility Report 2006

21

Working with Individuals and Society

For Community

Local greening activities● “Green Fundraising”
activities to promote forestation– Iwata City, Shizuoka Prefecture
At Iwata Works, employees have unified to participate in “all-employee activities for taking care of the regional
greenery”, to plant 1,500 azalea seedlings on the local “satoyama” (seminatural areas located adjacent to populated areas that were traditionally cared
for and utilized by local residents) over 4
years and to periodically cut the grassthere, working with local residents on a
volunteer basis for the beautificationand maintenance of Satoyama.
Iwata Works has participated forover 5 years in “Green Fundraising”

activities done through Iwata City forthe “Forestation event” in which donations are collected for planting
seedlings. In February of this year,
which marks the 10th anniversary of
the enactment of the “Green Fundraising Law”, Iwata Works was awarded a certificate of appreciation by
the Shizuoka Prefectural Society for
the Advancement of Greening.

● “Adopt a Forest” agreement signed
to stop the deterioration of the forest-Komagane City, Nagano Prefecture● Tree-planting at “Bell Farm”
agricultural park
– Matsusaka City, Mie PrefectureWith fewer successors for forest
caretakers, forest deterioration has
become a problem. Nagano Works
recently signed an “Adopt a Forest”
agreement with Komagane City, andby thinning in place of the existing
caretakers, Nagano Works is working together with the local government to maintain the forest.
This system is one that was established by Nagano Prefecture. Nagano Works will provide 5 years of financial support to Komagane City
and will cooperate with the city tomaintain the forests along the foothills of the Central Japanese Alps.
This will be used as a recreation areafor employees as well.

NTN Mikumo Co.,Ltd. as part of its
local green activities, set out in its
company-wide 2005 environmental
targets, planted five Michelia figo
trees at “Bell Farm” agricultural parkin Matzusaka City, Mie Prefecture.
The Michelia figo tree is not very
common, but is an evergreen shrubof the Magnolia family and is originallyfrom China. It has light yellow flowers
at the beginning of summer and gives
off a sweet banana-like smell, and forthis reason, it is also called “bananatree”. Twenty-seven people, including employees and family, participated in the tree-planting. NTN Mikumo
Co., Ltd. received a certificate of appre for this tree-planting from Matsusaka City.

● 4,500 phlox plants planted
in park– Kuwana City, Mie Prefecture
Kuwana Works planted 4,500
phlox plants at the nearby Harima
Central Park, a place where the people of Kuwana City can relax. A sloped area measuring 150m2 wasplanted. Phlox plants have flowers
similar to cherry blossoms, and cover
the ground like grass as they bloom.
City officials including Kuwana City’s
mayor, as well as 65 people from
NTN attended the planting ceremony. It is our hope that the phlox
plants will soothe the eyes of manyof the city’s residents and that thearea will become a place where they
can relax.

Local contribution activities (Japan)● Fostering the future engineersof the next-generation automobile
industry – Fuji Speedway
Our company provides constant velocity joints and bearings free ofcharge to motor sports clubs at universities participating in the “Student
Formula SAE Competition of Japan”,
and also provides technical guidance.
This competition is an opportunity forstudents to engage in Monozukurithat stimulates engineering education,and is supported by government,
academia, and industry to nurture thedevelopment and promotion of automobile engineering and the automobile industry. “From these young people we want to turn out the engineersthat will play a critical role in the automobile industry in the future” – This isthe vision that we give them.

● Actively interacting with local
society by opening our facilities
and holding sports competitions– Kuwana City, Mie Prefecture● Traffic safety activities commended
by Nagano Prefecture-Minowa Town, Kamiina-gun,
Nagano Prefecture

Kuwana Works interacts with local
society through sports by opening
the on-site gymnasium and athletic
fields to local residents, schools, andgovernment agencies as well as byholding youth baseball tournaments.

Nagano Works received the 2005 Nagano Prefecture Traffic Safety Promotion
Headquarters Award for its involvementin preventing traffic accidents and promoting traffic safety inside and outside of
the Works. Activities included encouraging seatbelt use on company grounds,
installing traffic safety signs, and sending
employees to help in awareness activities carried out
by the local
traffic safety
society.
Award

Returning of the championship flag
(At youth baseball tournaments held by NTN)

● Promoting interaction
with local society throughour summer festival-Bizen City, Okayama Prefecture
At the “NTN Okayama Summer
Festival”, a summer tradition, 3,500
people including local residents, employees, and their families enjoyed
the festivities. Its popularity comesfrom the various events and snack
booths.
The Kanazawa University team,supported by NTN, won first place.

● Demonstrating what environmental
conservation is - Iwata City, Shizuoka Prefecture
At Iwata Works, we welcome middle
school students, who will be taking on
the task of conserving the global environment in the future, and we participate in their environmental education.
Recently, 19 junior high school students and their teacher from Fukuroi

City, Shizuoka Prefecture, visited us.
After taking a tour of our manufacturing process, environmental facilities,
and on-site greening, they participated in a brainstorming and idea exchanging session. The essays thatthey sent to us later were clear andwell thought out, and showed thepositive results of this environmental
education.

● Reconstruction support
Emergency
for the Pakistan earthquake
Humanitarian Support
After the Pakistan earthquake in
October 2005, NTN group employees donated 3,144,370 yen and thecompany donated 3 million yen for a
total of 6,144,370 yen to the disasterarea through the Japanese Red
Cross.

22

NTN Corporate Social Responsibility Report 2006

Working with Individuals and Society

In our corporate philosophy, we have a pledge to “contribute to society”, and we are working to carry out public service activities that are done together with local society or integrated with the daily lives of people. The wide scope of these activities includes local“greening” activities, public service activities, coexistence with local society, support of local education, and the advancement and support of academics, sports, and culture. By introducing a volunteer sabbatical system, we have put in place a structure in which employees can actively participate in social contribution activities.

● Promoting joint industrial-academic
development – Head Office
To tackle future environmental problems, encourage industrial development,
and improve the standard of life, ourcompany is promoting research activities
in fields such as the environment and energy, medicine and social welfare, andnext-generation vehicles. This includes
actively supporting joint industrial-academic development.
In fiscal 2005, we carried out joint development on seven themes with four
universities. We plan to continue thistype of joint research.

Fukuroi middle school students on a tour

● Reconstruction support
for areas flooded by Hurricane Katrina
After Hurricane Katrina hit the southern United States in August of 2005, the employees of
our American affiliates gave $10,679US andthe company donated $14,809US, $25,488US
in total to the disaster area through the American Red Cross.

NTN Corporate Social Responsibility Report 2006

23

Working with Individuals and Society

For Community

Local greening activities● “Green Fundraising”
activities to promote forestation– Iwata City, Shizuoka Prefecture
At Iwata Works, employees have unified to participate in “all-employee activities for taking care of the regional
greenery”, to plant 1,500 azalea seedlings on the local “satoyama” (seminatural areas located adjacent to populated areas that were traditionally cared
for and utilized by local residents) over 4
years and to periodically cut the grassthere, working with local residents on a
volunteer basis for the beautificationand maintenance of Satoyama.
Iwata Works has participated forover 5 years in “Green Fundraising”

activities done through Iwata City forthe “Forestation event” in which donations are collected for planting
seedlings. In February of this year,
which marks the 10th anniversary of
the enactment of the “Green Fundraising Law”, Iwata Works was awarded a certificate of appreciation by
the Shizuoka Prefectural Society for
the Advancement of Greening.

● “Adopt a Forest” agreement signed
to stop the deterioration of the forest-Komagane City, Nagano Prefecture● Tree-planting at “Bell Farm”
agricultural park
– Matsusaka City, Mie PrefectureWith fewer successors for forest
caretakers, forest deterioration has
become a problem. Nagano Works
recently signed an “Adopt a Forest”
agreement with Komagane City, andby thinning in place of the existing
caretakers, Nagano Works is working together with the local government to maintain the forest.
This system is one that was established by Nagano Prefecture. Nagano Works will provide 5 years of financial support to Komagane City
and will cooperate with the city tomaintain the forests along the foothills of the Central Japanese Alps.
This will be used as a recreation areafor employees as well.

NTN Mikumo Co.,Ltd. as part of its
local green activities, set out in its
company-wide 2005 environmental
targets, planted five Michelia figo
trees at “Bell Farm” agricultural parkin Matzusaka City, Mie Prefecture.
The Michelia figo tree is not very
common, but is an evergreen shrubof the Magnolia family and is originallyfrom China. It has light yellow flowers
at the beginning of summer and gives
off a sweet banana-like smell, and forthis reason, it is also called “bananatree”. Twenty-seven people, including employees and family, participated in the tree-planting. NTN Mikumo
Co., Ltd. received a certificate of appre for this tree-planting from Matsusaka City.

● 4,500 phlox plants planted
in park– Kuwana City, Mie Prefecture
Kuwana Works planted 4,500
phlox plants at the nearby Harima
Central Park, a place where the people of Kuwana City can relax. A sloped area measuring 150m2 wasplanted. Phlox plants have flowers
similar to cherry blossoms, and cover
the ground like grass as they bloom.
City officials including Kuwana City’s
mayor, as well as 65 people from
NTN attended the planting ceremony. It is our hope that the phlox
plants will soothe the eyes of manyof the city’s residents and that thearea will become a place where they
can relax.

Local contribution activities (Japan)● Fostering the future engineersof the next-generation automobile
industry – Fuji Speedway
Our company provides constant velocity joints and bearings free ofcharge to motor sports clubs at universities participating in the “Student
Formula SAE Competition of Japan”,
and also provides technical guidance.
This competition is an opportunity forstudents to engage in Monozukurithat stimulates engineering education,and is supported by government,
academia, and industry to nurture thedevelopment and promotion of automobile engineering and the automobile industry. “From these young people we want to turn out the engineersthat will play a critical role in the automobile industry in the future” – This isthe vision that we give them.

● Actively interacting with local
society by opening our facilities
and holding sports competitions– Kuwana City, Mie Prefecture● Traffic safety activities commended
by Nagano Prefecture-Minowa Town, Kamiina-gun,
Nagano Prefecture

Kuwana Works interacts with local
society through sports by opening
the on-site gymnasium and athletic
fields to local residents, schools, andgovernment agencies as well as byholding youth baseball tournaments.

Nagano Works received the 2005 Nagano Prefecture Traffic Safety Promotion
Headquarters Award for its involvementin preventing traffic accidents and promoting traffic safety inside and outside of
the Works. Activities included encouraging seatbelt use on company grounds,
installing traffic safety signs, and sending
employees to help in awareness activities carried out
by the local
traffic safety
society.
Award

Returning of the championship flag
(At youth baseball tournaments held by NTN)

● Promoting interaction
with local society throughour summer festival-Bizen City, Okayama Prefecture
At the “NTN Okayama Summer
Festival”, a summer tradition, 3,500
people including local residents, employees, and their families enjoyed
the festivities. Its popularity comesfrom the various events and snack
booths.
The Kanazawa University team,supported by NTN, won first place.

● Demonstrating what environmental
conservation is - Iwata City, Shizuoka Prefecture
At Iwata Works, we welcome middle
school students, who will be taking on
the task of conserving the global environment in the future, and we participate in their environmental education.
Recently, 19 junior high school students and their teacher from Fukuroi

City, Shizuoka Prefecture, visited us.
After taking a tour of our manufacturing process, environmental facilities,
and on-site greening, they participated in a brainstorming and idea exchanging session. The essays thatthey sent to us later were clear andwell thought out, and showed thepositive results of this environmental
education.

● Reconstruction support
Emergency
for the Pakistan earthquake
Humanitarian Support
After the Pakistan earthquake in
October 2005, NTN group employees donated 3,144,370 yen and thecompany donated 3 million yen for a
total of 6,144,370 yen to the disasterarea through the Japanese Red
Cross.

22

NTN Corporate Social Responsibility Report 2006

Working with Individuals and Society

In our corporate philosophy, we have a pledge to “contribute to society”, and we are working to carry out public service activities that are done together with local society or integrated with the daily lives of people. The wide scope of these activities includes local“greening” activities, public service activities, coexistence with local society, support of local education, and the advancement and support of academics, sports, and culture. By introducing a volunteer sabbatical system, we have put in place a structure in which employees can actively participate in social contribution activities.

● Promoting joint industrial-academic
development – Head Office
To tackle future environmental problems, encourage industrial development,
and improve the standard of life, ourcompany is promoting research activities
in fields such as the environment and energy, medicine and social welfare, andnext-generation vehicles. This includes
actively supporting joint industrial-academic development.
In fiscal 2005, we carried out joint development on seven themes with four
universities. We plan to continue thistype of joint research.

Fukuroi middle school students on a tour

● Reconstruction support
for areas flooded by Hurricane Katrina
After Hurricane Katrina hit the southern United States in August of 2005, the employees of
our American affiliates gave $10,679US andthe company donated $14,809US, $25,488US
in total to the disaster area through the American Red Cross.

NTN Corporate Social Responsibility Report 2006

23

Working with Individuals and Society

For Community

Local contribution activities (Overseas)

Americas● Supporting a drug elimination
education program – USA
Victims of the serious drug problem
in the US include children. With thehope of having some effect in preventing this, NTN-BCA’s Lititz Plant
supports the “Friends of Narcanon”
anti-drug education program thatsaves students from the drug trap.

● Introducing Japanese life andculture to Americans – USA“Kidscommons” - Columbus Community Children’s Museum, wasopened in 1998 as a place for children to play and learn together. NTN
Driveshaft, Inc. employees introduced Japanese culture there. In thedisplay space on the first floor, a traditional Japanese living room was recreated and became popular withvisitors. We will continue to work toward mutual understanding between● Donations to the largest
charitable organizationin the USA – USA, Canada● Promoting higher education
through scholarships– Thailand

NTN-Bower Corp. and NTN Bearing Corp. of Canada Ltd. both donate to people in need through the“United Way”, North America’s largest charitable organization that collects funds for a variety of social welfare programs. A “matching gift”
program is used where funds donated by employees are matched by
the company.

There are many people in the world
who have a desire to obtain an education but are unable to do so because of various circumstances.
NTN Bearing-Thailand Co., Ltd.
gives scholarships to students who
are unable to receive an education
because of economic reasons, andprovides material support in the formof art-related tools, paper, and brushes to students who are majoring infine arts.

different cultures through cultural interaction.

Presenting scholarship money
to the Rajamangala University of Technology
Children delighted by origami hats

Europe24

NTN Corporate Social Responsibility Report 2006

Working for the global environment

Starting with simple things,
we’re doing ever more to protect our beautiful
planet and ensure the continuationof nature’s bounty.

● Supporting the futsal teamof a local elementary school– Thailand
Every year from May to June, there
is a futsal competition for elementary
school students in the Khonkaen region of Thailand. NTN Bearing-Thailand Co., Ltd. supports this competition by sponsoring a local futsal
team.

● Engaging in sports and interacting with local residents– France
NTN Transmissions Europe supports the “Allonnes Cross-Country
Competition” and the “WesternFrance Cross-Country Competition”.
These competitions are not only places to promote sport, but are also
events where employees and theirfamilies can interact with local residents to get a better understandingof each other, and are highly effective in this regard. Employees wear
T-shirts with NTN logos and participate on company teams and deepen
their camaraderie.

Asia

The NTN team participated in the race

● Providing a work experience
opportunity – England
NTN Bearings (UK) Ltd. accepts
children from local middle schools
and provides a work study opportunity to them. We hope that the work
experience will make students gain abetter understanding of society.

The “Non Nong Wat” elementary school student
futsal team sponsored by NTN

NTN Corporate Social Responsibility Report 2006

25

Working with Individuals and Society

For Community

Local contribution activities (Overseas)

Americas● Supporting a drug elimination
education program – USA
Victims of the serious drug problem
in the US include children. With thehope of having some effect in preventing this, NTN-BCA’s Lititz Plant
supports the “Friends of Narcanon”
anti-drug education program thatsaves students from the drug trap.

● Introducing Japanese life andculture to Americans – USA“Kidscommons” - Columbus Community Children’s Museum, wasopened in 1998 as a place for children to play and learn together. NTN
Driveshaft, Inc. employees introduced Japanese culture there. In thedisplay space on the first floor, a traditional Japanese living room was recreated and became popular withvisitors. We will continue to work toward mutual understanding between● Donations to the largest
charitable organizationin the USA – USA, Canada● Promoting higher education
through scholarships– Thailand

NTN-Bower Corp. and NTN Bearing Corp. of Canada Ltd. both donate to people in need through the“United Way”, North America’s largest charitable organization that collects funds for a variety of social welfare programs. A “matching gift”
program is used where funds donated by employees are matched by
the company.

There are many people in the world
who have a desire to obtain an education but are unable to do so because of various circumstances.
NTN Bearing-Thailand Co., Ltd.
gives scholarships to students who
are unable to receive an education
because of economic reasons, andprovides material support in the formof art-related tools, paper, and brushes to students who are majoring infine arts.

different cultures through cultural interaction.

Presenting scholarship money
to the Rajamangala University of Technology
Children delighted by origami hats

Europe24

NTN Corporate Social Responsibility Report 2006

Working for the global environment

Starting with simple things,
we’re doing ever more to protect our beautiful
planet and ensure the continuationof nature’s bounty.

● Supporting the futsal teamof a local elementary school– Thailand
Every year from May to June, there
is a futsal competition for elementary
school students in the Khonkaen region of Thailand. NTN Bearing-Thailand Co., Ltd. supports this competition by sponsoring a local futsal
team.

● Engaging in sports and interacting with local residents– France
NTN Transmissions Europe supports the “Allonnes Cross-Country
Competition” and the “WesternFrance Cross-Country Competition”.
These competitions are not only places to promote sport, but are also
events where employees and theirfamilies can interact with local residents to get a better understandingof each other, and are highly effective in this regard. Employees wear
T-shirts with NTN logos and participate on company teams and deepen
their camaraderie.

Asia

The NTN team participated in the race

● Providing a work experience
opportunity – England
NTN Bearings (UK) Ltd. accepts
children from local middle schools
and provides a work study opportunity to them. We hope that the work
experience will make students gain abetter understanding of society.

The “Non Nong Wat” elementary school student
futsal team sponsored by NTN

NTN Corporate Social Responsibility Report 2006

25

Environmental Management

Environmental Management

NTN Environmental Policy

Organizational Structure of Environmental
Conservation and Initiatives

Basic Concept
Advocating harmony with the global environment is our most important issue and we will make constant efforts to contribute to the harmonious development of society, while aiming to reduce environmental impacts and contribute to a recycling society.

Environmental Management

Product development, production activities, sales, logistics, and even service – we look at how eacharea of business affects the world and the environment that surrounds our daily lives, and we judge
how we can be involved. There has never been a time when a corporation has had to think more
about the global environment and assertively act on its behalf. The NTN Group is working to protect
the global environment both from the standpoint of corporate management and from the standpointof the regular consumer.

NTN’s Environmental Conservation Structure
Providing a corporate structure toensure environmental conservation
is an especially vital social responsibility. Based on this, NTN establishedthe Environmental Conservation
Committee in all departments (including the head office, R&D, manufacturing, sales, and logistics), whichbegan company-wide environmental
conservation activities. To clarify its
ongoing scope of management andtargets, this committee was renamed
the Environmental Management
Committee.

Action Guideline

President

Strategy Committee

Energy and Natural Resources
Conservation Subcommittee
Environmental Conservation
Substances
Management Subcommittee

Environmental Management
Department

Distribution and Environment
Subcommittee

Sales and Administration Division

Manufacturing DivisionOn-site Environmental
ManagementCommittee

In connection with its manufacture and sales of bearings, constant-velocity joints, and precisionequipment, the NTN Group will comply with the following guidelines, which state our commitment tocontinuously reduce harm to the environment from our business activities, products and services
and to maintain a safe environment for the future.

Pollution Prevention
Subcommittee

Environmental Management
Committee

Internal Environmental
Auditing TeamOn-site Environmental
Management Committee

Pollution Prevention Action
Committee

Environmental Management
Division*

Distribution and Environment
Action Committee

Energy and Natural Resources
Conservation Action Committee

Plant

Office Environment Action
Committee

Internal Environment
Auditing Team
Product Center
Distribution Center
Head office / Branches / Sales
Branches

Environmental Conservation
Substances Action Committee

NTN will contribute to world-wide energy conservation by developing and providing eco-conscious
products using state-of-the-art high precision techniques and friction-reducing technology.

*At some sites, the Management Section or the General
Administration Office is in charge of this operation.

■ Chronology of the NTN Group’s Environmental Conservation Initiatives
New laws, International treaties establishedNTN not only will comply with the standards and requirements set forth in applicable governmental
laws and regulations but also with customers’ requirements and internal standards, which NTN will
establish as it deems necessary.
Beginning at the research, development, and design stage, NTN will endeavor to reduce harm to theenvironment.
In its purchases of raw materials, parts, and equipment, NTN will take into account protection of the environment, preservation of resources, and more efficient use of energy. In its production and sales activities, NTN will endeavor to reduce energy consumption and waste generation and promote recycling.

FiscalYear

Details of Efforts■ The Basic Environment Law is established.

1993■ Environmental Conservation Committee established.

■ The Basic Environment Plan is settled.

1994■ 1,1,1-Trichloroethane phased out.

■ Containers and Packaging Recycling Law is established.

1995■ CFC113 phased out.

■ ISO 14001, JISQ14001 established.

1996■ Iwata Works begins preparations to acquire ISO 14001 certification.

■ The Kyoto Protocol is adopted.

1997■ Environmental Management Guide established.

■ Legislation established for the promotion of global warming countermeasures.

1998■ Changed the Environmental Conservation Committee to the Environmental
Management Committee.
■ Iwata Works acquires ISO 14001 certification.
■ A total of 12 operating sites acquired ISO certification (multi-site).

■ Law Concerning Special Measure against Dioxins established.
■ PRTR Law established.

1999■ Issued first edition of NTN Environmental Action Report.
■ Development of ECO series product

NTN will endeavor to implement production methods and distribution systems that have less environmental effect in terms of use of resources, energy, pollution, and waste.

■ The Basic Law to promote the creation of a recycling society.

NTN will conduct environmental audits and will endeavor to maintain and improve corporate environmental management systems.

■ Law Concerning Special Measures against PCB Waste issued.

■ Law on promoting green purchasing established.

■ Trichloroethylene phased out.
2000

■ Disclosed Environmental Accounting.
■ Iwata Works transferred to ISO 14001 (multi-site).

■ Law for Promotion of Effective Utilization of Resources established.

2001

NTN will conduct environmental education and company-wide promotion activities. NTN will promote
improved awareness of this Environmental Policy and environmental protection to all persons working for and on behalf of NTN Group.

■ Automobile Recycling Law established.

Kenji Okada

26 NTN Corporate Social Responsibility Report 2006

2002

■ Respond to EU’s End-of-Life Vehicles Directive.
■ Start manufacture and distribution of grinding swarf briquetting machine.
■ Achieved zero emissions for all domestic operating sites.

■ European Union’s ELV directive comes into effect.
■ Implementation of Soil Contamination Countermeasures Law

2003

2004

■ Implementation of Automobile Recycling Law■ Amendment to the Law Concerning the Promotion of the Measures to Copewith Global Warming announced.

■ Completed cleanup of polluted ground at old operating sites(Kishiwada and Kawachi Nagano, Osaka).
■ NTN Mie Corporation incorporated into ISO 14001 certification (multi-site).

■ Industry standard environmentally hazardous substances set out for the auto
industry (GADSL: Global Automotive Declarable Substance List) and theelectrical and electronic industry (JIG: Joint Industry Guideline).
■ Amendment to Law Regarding the Rationalization of Energy Use announced.

■ Incorporated NTN Casting into ISO 14001 (multi-site).
■ Incorporated NTN Omaezaki Corporation into ISO 14001 (multi-site).

■ Kyoto Protocol was put into effect.
■ ISO 14001 revised.

Managing Director
Chief Environmental Management Officer
NTN Corporation
April 1, 2006

■ PRTR Law Countermeasures (database)■ Zero emission targets established.

■ Soil Contamination Countermeasures Law established.

NTN will cooperate in programs for environmental protection conducted by national and local governmental entities and will participate actively in regional environmental activities.

■ Dichloromethane phased out.

■ Introduction of “Cool Biz” practices■ Greening activities adopted company-wide.
2005

NTN Corporate Social Responsibility Report 2006

27

Environmental Management

Environmental Management

NTN Environmental Policy

Organizational Structure of Environmental
Conservation and Initiatives

Basic Concept
Advocating harmony with the global environment is our most important issue and we will make constant efforts to contribute to the harmonious development of society, while aiming to reduce environmental impacts and contribute to a recycling society.

Environmental Management

Product development, production activities, sales, logistics, and even service – we look at how eacharea of business affects the world and the environment that surrounds our daily lives, and we judge
how we can be involved. There has never been a time when a corporation has had to think more
about the global environment and assertively act on its behalf. The NTN Group is working to protect
the global environment both from the standpoint of corporate management and from the standpointof the regular consumer.

NTN’s Environmental Conservation Structure
Providing a corporate structure toensure environmental conservation
is an especially vital social responsibility. Based on this, NTN establishedthe Environmental Conservation
Committee in all departments (including the head office, R&D, manufacturing, sales, and logistics), whichbegan company-wide environmental
conservation activities. To clarify its
ongoing scope of management andtargets, this committee was renamed
the Environmental Management
Committee.

Action Guideline

President

Strategy Committee

Energy and Natural Resources
Conservation Subcommittee
Environmental Conservation
Substances
Management Subcommittee

Environmental Management
Department

Distribution and Environment
Subcommittee

Sales and Administration Division

Manufacturing DivisionOn-site Environmental
ManagementCommittee

In connection with its manufacture and sales of bearings, constant-velocity joints, and precisionequipment, the NTN Group will comply with the following guidelines, which state our commitment tocontinuously reduce harm to the environment from our business activities, products and services
and to maintain a safe environment for the future.

Pollution Prevention
Subcommittee

Environmental Management
Committee

Internal Environmental
Auditing TeamOn-site Environmental
Management Committee

Pollution Prevention Action
Committee

Environmental Management
Division*

Distribution and Environment
Action Committee

Energy and Natural Resources
Conservation Action Committee

Plant

Office Environment Action
Committee

Internal Environment
Auditing Team
Product Center
Distribution Center
Head office / Branches / Sales
Branches

Environmental Conservation
Substances Action Committee

NTN will contribute to world-wide energy conservation by developing and providing eco-conscious
products using state-of-the-art high precision techniques and friction-reducing technology.

*At some sites, the Management Section or the General
Administration Office is in charge of this operation.

■ Chronology of the NTN Group’s Environmental Conservation Initiatives
New laws, International treaties establishedNTN not only will comply with the standards and requirements set forth in applicable governmental
laws and regulations but also with customers’ requirements and internal standards, which NTN will
establish as it deems necessary.
Beginning at the research, development, and design stage, NTN will endeavor to reduce harm to theenvironment.
In its purchases of raw materials, parts, and equipment, NTN will take into account protection of the environment, preservation of resources, and more efficient use of energy. In its production and sales activities, NTN will endeavor to reduce energy consumption and waste generation and promote recycling.

FiscalYear

Details of Efforts■ The Basic Environment Law is established.

1993■ Environmental Conservation Committee established.

■ The Basic Environment Plan is settled.

1994■ 1,1,1-Trichloroethane phased out.

■ Containers and Packaging Recycling Law is established.

1995■ CFC113 phased out.

■ ISO 14001, JISQ14001 established.

1996■ Iwata Works begins preparations to acquire ISO 14001 certification.

■ The Kyoto Protocol is adopted.

1997■ Environmental Management Guide established.

■ Legislation established for the promotion of global warming countermeasures.

1998■ Changed the Environmental Conservation Committee to the Environmental
Management Committee.
■ Iwata Works acquires ISO 14001 certification.
■ A total of 12 operating sites acquired ISO certification (multi-site).

■ Law Concerning Special Measure against Dioxins established.
■ PRTR Law established.

1999■ Issued first edition of NTN Environmental Action Report.
■ Development of ECO series product

NTN will endeavor to implement production methods and distribution systems that have less environmental effect in terms of use of resources, energy, pollution, and waste.

■ The Basic Law to promote the creation of a recycling society.

NTN will conduct environmental audits and will endeavor to maintain and improve corporate environmental management systems.

■ Law Concerning Special Measures against PCB Waste issued.

■ Law on promoting green purchasing established.

■ Trichloroethylene phased out.
2000

■ Disclosed Environmental Accounting.
■ Iwata Works transferred to ISO 14001 (multi-site).

■ Law for Promotion of Effective Utilization of Resources established.

2001

NTN will conduct environmental education and company-wide promotion activities. NTN will promote
improved awareness of this Environmental Policy and environmental protection to all persons working for and on behalf of NTN Group.

■ Automobile Recycling Law established.

Kenji Okada

26 NTN Corporate Social Responsibility Report 2006

2002

■ Respond to EU’s End-of-Life Vehicles Directive.
■ Start manufacture and distribution of grinding swarf briquetting machine.
■ Achieved zero emissions for all domestic operating sites.

■ European Union’s ELV directive comes into effect.
■ Implementation of Soil Contamination Countermeasures Law

2003

2004

■ Implementation of Automobile Recycling Law■ Amendment to the Law Concerning the Promotion of the Measures to Copewith Global Warming announced.

■ Completed cleanup of polluted ground at old operating sites(Kishiwada and Kawachi Nagano, Osaka).
■ NTN Mie Corporation incorporated into ISO 14001 certification (multi-site).

■ Industry standard environmentally hazardous substances set out for the auto
industry (GADSL: Global Automotive Declarable Substance List) and theelectrical and electronic industry (JIG: Joint Industry Guideline).
■ Amendment to Law Regarding the Rationalization of Energy Use announced.

■ Incorporated NTN Casting into ISO 14001 (multi-site).
■ Incorporated NTN Omaezaki Corporation into ISO 14001 (multi-site).

■ Kyoto Protocol was put into effect.
■ ISO 14001 revised.

Managing Director
Chief Environmental Management Officer
NTN Corporation
April 1, 2006

■ PRTR Law Countermeasures (database)■ Zero emission targets established.

■ Soil Contamination Countermeasures Law established.

NTN will cooperate in programs for environmental protection conducted by national and local governmental entities and will participate actively in regional environmental activities.

■ Dichloromethane phased out.

■ Introduction of “Cool Biz” practices■ Greening activities adopted company-wide.
2005

NTN Corporate Social Responsibility Report 2006

27

Environmental Management

Environmental Targets and Results

For fiscal 2005, we continued fromthe previous year by setting 13 items(11 domestically and 2 overseas) in
the following three areas:“Conservation of global environment”, “Contribution to a recycling
society”, and “Maintenance and improvement of environmental management systems”. We set concrete
numerical targets, etc., and worked
toward achieving them.
● Reducing CO2 emissions andachieving zero emissions
Despite a variety of energy savings
measures to reduce our domestic
CO2 emission rate (CO2 emission
divided by value added), we remain
at the same level as that of the previ-

Environmental Target for Fiscal 2006
● Conserving resources andstrengthening our management structure

ous fiscal year. NTN is committed togreater improvement going forward.
Meanwhile, 4 out of 10 sites overseas achieved their targets, and wewill promote further energy conservation initiatives at other sites to achieve targets for all of our sites.
Regarding the progress toward
zero emissions (activities to achieve
zero landfilled waste and a recycling
rate of 100%), we achieved a recycling rate of 99.2% domestically, thesame as the previous year. The improvement in the recycling rate overseas was below the target value. We
will continue to strengthen our recycling and related activities to achieve
our targets.

Objective

Target for Fiscal 2005

Regarding the conservation of resources, results for reducing paper
usage were better than the previous
year, but results fell just short of ourtarget reduction for the use of Styrofoam.
Because coolants containing chlorine may generate dioxins during disposal, we are voluntarily working tophase these out and will continue efforts to achieve total elimination.

Result for Fiscal 2005

Evaluation

CO2 emission rate: 20% reduction relative
to fiscal 1997

CO2 emission rate: 18% reduction relative
to fiscal 1997

Energy conservation diagnosis andimprovements for major Works

An energy savings diagnosis was done
and the results are being released.

Overseas CO2 emission rate:
2% reduction relative to fiscal 2004

4 out of 10 sites achieved their target.

The environmental targets for fiscal
2006 were based on the efforts andresults of 2005, and featured concrete numerical targets for each of
the three fields.
We will work still harder to reduce
our burden on the environment andachieve NTN’s fiscal 2010 targets.

We will address the one site in Japan still using coolant containing
chlorine and totally abolish this coolant. Also, we will methodically switchfrom halon extinguishers to an alternative.

● “Conservation of the global
environment”

Domestically (with the exception of
NTN Casting Corp.), we will maintainand continue zero emissions. NTN
Casting Corp. will expand its use ofwaste sand and waste slag. (NTN
Casting Corp.’s recycling target: atleast 85%.) We will work toward achieving zero emissions from all companies. In addition, we will deploy thegrinding swarf briquetting machine tooverseas sites in an effort to increase
the recycling rate overseas, especial-

With the Kyoto Protocol coming
into effect, further aggressive efforts
to reduce CO2 emissions are required. In fiscal 2006, we will promote effective energy conservation
initiatives at all sites (including thoseoverseas).
Also, we will pursue greening activities company-wide and implement
soil pollution countermeasures.

Objective

Prevent air, water, andground pollution

Elimination of coolants with chlorine:
Domestic phase out (2 remaining)

Domestic

Protect resources

Promote green
procurement*1)Shimbols for evaluation:

P14

Kuwana Works (Planting moss phlox),
Iwata Works (cutting grass on “satoyama”),
NTN Mikumo Corp. (planting trees at nearby park), etc.

P22

Domestic

Promote zero emissions:
recycle rate 98% or more*3

Promote zero emissions:
recycle rate 99%*4

Overseas

Promote zero emissions:
recycle rate 94%

Promote zero emissions:
recycle rate 90%

Paper consumption:
Domestic
28% reduction relative to fiscal 1998

Styrofoam:
81% reduction relative to fiscal 1999

Establish environmental hazardous
substance management structure

Database of environmentally hazardous
substances being compiled

Establish green procurement policy

Being promoted

Respond to customer audits

Complied with customer audits(2 companies)

Domestic

Promote ISO 14001
Multi-Site Certification

Acquired certification
Domestic
for NTN Mie Corporation

Promote environmental
management of the
supply chain

Support suppliers' acquisition
Domesticof ISO 14001 and others

Respond to new laws

Respond to ISO 14001 (2004 version)
Domestic Respond to revised Energy Conservation Law
Respond to VOC emission control

not achieved *2)CO2 emission (ton /million yen) =28 NTN Corporate Social Responsibility Report 2006

Prevent air, water andground pollution

Target for Fiscal 2010

Domestic

Implementation of energy conservation diagnosis(Large-scale energy conservation measures
promoted, horizontal deployment to other plants)

CO2 emission rate:
25% reduction relative to fiscal 1997

CO2 emission rate:
2% reduction relative to fiscal 2005

CO2 emission rate:
10% reduction relative to fiscal 2002

Number of halon extinguishers replaced withcarbon dioxide extinguishers: 125 units or more

Phasing out of halon extinguishers

Elimination of coolants with chlorine:phase out (1 remaining-Iwata)
Completion of ground decontamination
at Kuwana Works

Participation in Regional
Environmental
Preservation Activities

Domestic

Participation in regional green activities

Domestic

Promote zero emissions:
recycle rate 98% or more*5

Continue Zero emissions

Overseas

Promote zero emissions:
recycle rate 94%

Promote zero emissions:
recycle rate 98% or more (target for fiscal 2006)

Domestic

Paper consumption:
31% reduction relative to fiscal 1998

Paper consumption:
50% reduction relative to fiscal 1998

Domestic

Styrofoam:
84% reduction relative to fiscal 1999

Complete phase out of Styrofoam

CO2 emission
Sales added value amount (million yen)

Reduce wastematerials

Paper consumption:
29% reduction relative to fiscal 1998

Styrofoam:
84% reduction relative to fiscal 1999

Promote elimination of phthalate esters

achieved/promotes,

To respond to the EU’s RoHS and
ELV directives, we will promote total
green procurement. Also, we will
support our suppliers in their efforts
to obtain environmental certification
to improve the environmental management of our supply chain. In addition, as a way to respond to Japan’s
Amendment to the Law Regarding
the Rationalization of Energy Use, wewill be working to conserve energy,
particularly with cargo shippers.

P36,37

Domestic

Maintain andimproveenvironmental
management
structure

Sales of new eco-friendly products:
71% higher than 2004

Domestic Participation in regional green activities

Reduce wastematerials

Conservation of the
global environment

Sales amount for eco-friendly products:+10% relative to fiscal 2004

Participation in Regional
Environmental
Preservation Activities

Overseas

P35

Investigation of soil
/Decontamination started at Kuwana Works

Domestic

Create a recycling
society

Totally eliminated at NTN Omaezaki Corp.;
still in progress at Iwata Works● “Maintenance andimprovement of environmental
management system”

CO2 emission rate: 20% reduction relative
to fiscal 1997
Reduce CO2 emissions

Response to Soil Contamination
Countermeasures Law
Promote the development of eco-friendly
products

Target for Fiscal 2006

P34

Number of halon extinguishers replaced with
Number of halon extinguishers replaced with carbon
carbon dioxide extinguishers: 115 units or more dioxide extinguishers: 110 units or more (592 remaining)
Conservation of the
global environment● “Contribution to a recycling
society”

ly in North America.
We will continue our efforts to reduce the amount of paper and Styrofoam that we use.

Page

Domestic
Reduce CO2 emissions

Environmental Management

Results for Fiscal 2005

P38

Protect resources

P32

Completed fundamental tests for switching
to alternate material
NTN Mie Corporation certified,multi-site certification obtained
Of 332 primary suppliers, 188 have received
certification. Began supporting smaller
businesses in Japan in obtaining the Eco Stage
Introductory Level certification
Revision of manuals and specifications(NTN Environmental Policy, Environmental
Management Manual and NTN Environmentally
Hazardous Substance List)*3)Recycling percentage (%) = 1-

Final amount disposed of by landfill (tons)
Total amount discharged (tons)

Create a Recycling
society100

Total response to EU directives (RoHS, ELV)
Startup of environmentally hazardous
substance database
Promote green
procurement

P31

Domestic

Maintain and improve
environmental
management structure

Establishment and deploymentof NTN Green Procurement Standard
Respond to customer audits
Promote elimination of phthalate esters

P17
Promote environmental
management of the
supply chain

Domestic

Promoting the introduction of the Eco
Stage Introductory Level certification

Respond to new laws

Domestic

Expansion to cargo shipping companies

P32*4) NTN Casting has a separate target:achieving a 50% recycling rate.

*5 NTN Casting has a separate target: to achieve a 85% recycling rate.

NTN Corporate Social Responsibility Report 2006

29

Environmental Management

Environmental Targets and Results

For fiscal 2005, we continued fromthe previous year by setting 13 items(11 domestically and 2 overseas) in
the following three areas:“Conservation of global environment”, “Contribution to a recycling
society”, and “Maintenance and improvement of environmental management systems”. We set concrete
numerical targets, etc., and worked
toward achieving them.
● Reducing CO2 emissions andachieving zero emissions
Despite a variety of energy savings
measures to reduce our domestic
CO2 emission rate (CO2 emission
divided by value added), we remain
at the same level as that of the previ-

Environmental Target for Fiscal 2006
● Conserving resources andstrengthening our management structure

ous fiscal year. NTN is committed togreater improvement going forward.
Meanwhile, 4 out of 10 sites overseas achieved their targets, and wewill promote further energy conservation initiatives at other sites to achieve targets for all of our sites.
Regarding the progress toward
zero emissions (activities to achieve
zero landfilled waste and a recycling
rate of 100%), we achieved a recycling rate of 99.2% domestically, thesame as the previous year. The improvement in the recycling rate overseas was below the target value. We
will continue to strengthen our recycling and related activities to achieve
our targets.

Objective

Target for Fiscal 2005

Regarding the conservation of resources, results for reducing paper
usage were better than the previous
year, but results fell just short of ourtarget reduction for the use of Styrofoam.
Because coolants containing chlorine may generate dioxins during disposal, we are voluntarily working tophase these out and will continue efforts to achieve total elimination.

Result for Fiscal 2005

Evaluation

CO2 emission rate: 20% reduction relative
to fiscal 1997

CO2 emission rate: 18% reduction relative
to fiscal 1997

Energy conservation diagnosis andimprovements for major Works

An energy savings diagnosis was done
and the results are being released.

Overseas CO2 emission rate:
2% reduction relative to fiscal 2004

4 out of 10 sites achieved their target.

The environmental targets for fiscal
2006 were based on the efforts andresults of 2005, and featured concrete numerical targets for each of
the three fields.
We will work still harder to reduce
our burden on the environment andachieve NTN’s fiscal 2010 targets.

We will address the one site in Japan still using coolant containing
chlorine and totally abolish this coolant. Also, we will methodically switchfrom halon extinguishers to an alternative.

● “Conservation of the global
environment”

Domestically (with the exception of
NTN Casting Corp.), we will maintainand continue zero emissions. NTN
Casting Corp. will expand its use ofwaste sand and waste slag. (NTN
Casting Corp.’s recycling target: atleast 85%.) We will work toward achieving zero emissions from all companies. In addition, we will deploy thegrinding swarf briquetting machine tooverseas sites in an effort to increase
the recycling rate overseas, especial-

With the Kyoto Protocol coming
into effect, further aggressive efforts
to reduce CO2 emissions are required. In fiscal 2006, we will promote effective energy conservation
initiatives at all sites (including thoseoverseas).
Also, we will pursue greening activities company-wide and implement
soil pollution countermeasures.

Objective

Prevent air, water, andground pollution

Elimination of coolants with chlorine:
Domestic phase out (2 remaining)

Domestic

Protect resources

Promote green
procurement*1)Shimbols for evaluation:

P14

Kuwana Works (Planting moss phlox),
Iwata Works (cutting grass on “satoyama”),
NTN Mikumo Corp. (planting trees at nearby park), etc.

P22

Domestic

Promote zero emissions:
recycle rate 98% or more*3

Promote zero emissions:
recycle rate 99%*4

Overseas

Promote zero emissions:
recycle rate 94%

Promote zero emissions:
recycle rate 90%

Paper consumption:
Domestic
28% reduction relative to fiscal 1998

Styrofoam:
81% reduction relative to fiscal 1999

Establish environmental hazardous
substance management structure

Database of environmentally hazardous
substances being compiled

Establish green procurement policy

Being promoted

Respond to customer audits

Complied with customer audits(2 companies)

Domestic

Promote ISO 14001
Multi-Site Certification

Acquired certification
Domestic
for NTN Mie Corporation

Promote environmental
management of the
supply chain

Support suppliers' acquisition
Domesticof ISO 14001 and others

Respond to new laws

Respond to ISO 14001 (2004 version)
Domestic Respond to revised Energy Conservation Law
Respond to VOC emission control

not achieved *2)CO2 emission (ton /million yen) =28 NTN Corporate Social Responsibility Report 2006

Prevent air, water andground pollution

Target for Fiscal 2010

Domestic

Implementation of energy conservation diagnosis(Large-scale energy conservation measures
promoted, horizontal deployment to other plants)

CO2 emission rate:
25% reduction relative to fiscal 1997

CO2 emission rate:
2% reduction relative to fiscal 2005

CO2 emission rate:
10% reduction relative to fiscal 2002

Number of halon extinguishers replaced withcarbon dioxide extinguishers: 125 units or more

Phasing out of halon extinguishers

Elimination of coolants with chlorine:phase out (1 remaining-Iwata)
Completion of ground decontamination
at Kuwana Works

Participation in Regional
Environmental
Preservation Activities

Domestic

Participation in regional green activities

Domestic

Promote zero emissions:
recycle rate 98% or more*5

Continue Zero emissions

Overseas

Promote zero emissions:
recycle rate 94%

Promote zero emissions:
recycle rate 98% or more (target for fiscal 2006)

Domestic

Paper consumption:
31% reduction relative to fiscal 1998

Paper consumption:
50% reduction relative to fiscal 1998

Domestic

Styrofoam:
84% reduction relative to fiscal 1999

Complete phase out of Styrofoam

CO2 emission
Sales added value amount (million yen)

Reduce wastematerials

Paper consumption:
29% reduction relative to fiscal 1998

Styrofoam:
84% reduction relative to fiscal 1999

Promote elimination of phthalate esters

achieved/promotes,

To respond to the EU’s RoHS and
ELV directives, we will promote total
green procurement. Also, we will
support our suppliers in their efforts
to obtain environmental certification
to improve the environmental management of our supply chain. In addition, as a way to respond to Japan’s
Amendment to the Law Regarding
the Rationalization of Energy Use, wewill be working to conserve energy,
particularly with cargo shippers.

P36,37

Domestic

Maintain andimproveenvironmental
management
structure

Sales of new eco-friendly products:
71% higher than 2004

Domestic Participation in regional green activities

Reduce wastematerials

Conservation of the
global environment

Sales amount for eco-friendly products:+10% relative to fiscal 2004

Participation in Regional
Environmental
Preservation Activities

Overseas

P35

Investigation of soil
/Decontamination started at Kuwana Works

Domestic

Create a recycling
society

Totally eliminated at NTN Omaezaki Corp.;
still in progress at Iwata Works● “Maintenance andimprovement of environmental
management system”

CO2 emission rate: 20% reduction relative
to fiscal 1997
Reduce CO2 emissions

Response to Soil Contamination
Countermeasures Law
Promote the development of eco-friendly
products

Target for Fiscal 2006

P34

Number of halon extinguishers replaced with
Number of halon extinguishers replaced with carbon
carbon dioxide extinguishers: 115 units or more dioxide extinguishers: 110 units or more (592 remaining)
Conservation of the
global environment● “Contribution to a recycling
society”

ly in North America.
We will continue our efforts to reduce the amount of paper and Styrofoam that we use.

Page

Domestic
Reduce CO2 emissions

Environmental Management

Results for Fiscal 2005

P38

Protect resources

P32

Completed fundamental tests for switching
to alternate material
NTN Mie Corporation certified,multi-site certification obtained
Of 332 primary suppliers, 188 have received
certification. Began supporting smaller
businesses in Japan in obtaining the Eco Stage
Introductory Level certification
Revision of manuals and specifications(NTN Environmental Policy, Environmental
Management Manual and NTN Environmentally
Hazardous Substance List)*3)Recycling percentage (%) = 1-

Final amount disposed of by landfill (tons)
Total amount discharged (tons)

Create a Recycling
society100

Total response to EU directives (RoHS, ELV)
Startup of environmentally hazardous
substance database
Promote green
procurement

P31

Domestic

Maintain and improve
environmental
management structure

Establishment and deploymentof NTN Green Procurement Standard
Respond to customer audits
Promote elimination of phthalate esters

P17
Promote environmental
management of the
supply chain

Domestic

Promoting the introduction of the Eco
Stage Introductory Level certification

Respond to new laws

Domestic

Expansion to cargo shipping companies

P32*4) NTN Casting has a separate target:achieving a 50% recycling rate.

*5 NTN Casting has a separate target: to achieve a 85% recycling rate.

NTN Corporate Social Responsibility Report 2006

29

Environmental Management

Environmental Management

Business Activities andEnvironmental Hazard
Production for the entire NTNGroup (steel and secondary inputs)
totaled 379,000 tons, 30% greaterthan the previous fiscal year. As a result of our energy conservation andzero emission (zero waste) efforts,
however, we were able to limit CO2
emissions to a mere 4% increaseover the previous year.

INPUT

Raw Material

Steel about
358,800t

Result (for fiscal 2005)

Items

Amount18% reduction relative to fiscal 1997

117

Reduction of waste

Recycle rate 99%

Profit from sale of valuable materials
such as metal sludge

Profit from sale of saleable
recyclable materials

Reduction in amount of paper purchased

29% reduction since fiscal 1998

Results of energy conservationfrom air conditioning & illumination

149

Cost reductions through energy
conservation

Reduction in amount of Styrofoam purchased

81% reduction since fiscal 1999

Results of introducing the grinding
swarf briquetting machine, etc.

110

Waste processing cost reductions
through recycling

Ther mal
recycleUse exhaust
heat

OUTPUT
CO 2 emission
255,426t

Industrial
waste 395t

Product

Wastewater
1,978 thousand m3[Accounting standard for environmental accounting]・Applicable period: April 2005 to March 2006
・Organizational scope: the 13 manufacturing
sites in Japan that have ISO 14001 certification (multi-site)
・Conforms to Japan’s Ministry of theEnvironment “Environmental Accounting
Guideline - 2005 edition”

At NTN, we are working to obtain
ISO 14001 certification for all sites,
both domestic and international. To
efficiently carry out unified environmental management at all of ourcompanies, we have obtained multisite certification for 14 domestic sites
and 12 overseas sites obtained ISO
14001 certification as well.
In fiscal 2005, Mie Corporation (Kuwana City, Mie Prefecture) obtained
multi-site certification, and overseas,
Shanghai NTN Corporation obtained
the certification

Japan-registration
certificate (multi-site)

Operating Site
Area

Domestic

Environmental Preservation Investment Costs

Amount2) Upstream/downstream expenses(Environmental preservation cost for inhibiting
environmental hazard caused upstream anddownstream from the business activities)

52

59

22

Details
Environmental equipment(dust collectors, particulate smoke removal
devices,wastewater treatment equipment)
Energy conservation equipment such as
new inverters (motors, illumination, airconditioning), equipment to natural gas
Grinding swarf briquetting machines,
recycling of waste, equipment to reduce
waste3) Management activity expenses (Environmental
preservation cost for management activities)

04) R&D expenses (Environmental preservation cost for R&D)
5) Social activity expenses(Environmental preservation cost for social activities)

1,060
0

Amount

161

67

484

5

0

236

R&D equipment related to environmental conservation

2,441

Company Name

Year/Month Obtained
Plant Name

Equipment cost for grinding swarf briquetting
machines (maintenance costs,intermediate
processing costs for waste material,
transportation cost, etc.)
Green procurement(OA devices, paper, stationery, etc.)
Labor costs for EMS. Disclosure of information(advertising, environmental action report)
Greening and beautification ofcompany grounds

38
3,433

(Reference) Grand total for previous year

975

3,401

Registration No.

Registration Agency

1999

11

JSAE176

JSA

2000

4

0112005

LRQA

American NTN Bearing
Manufacturing Corporation

Elgin Plant

2000

6

111994

LRQA

Schiller Park Plant

2000

9

112115LRQA

Macomb Plant

2000

6

111998LRQA

Hamilton Plant

2000

6

111999LRQA

NTN-BCA Corporation, Lititz Plant

2000

7

A8699

UL

NTN Driveshaft, Inc.

1999

12

A8478

UL

CanadaNTN Bearing Corporation of Canada, Canada Plant

1999

7

287

KPMG

Germany

NTN Kugellagerfabrik (Deutschland) GmbH, Mettman Plant

1999

6

201167-2

LRQA

FranceNTN Transmissions Europe

2003

1

19479

AFAQ

ThailandNTN Manufacturing Thailand

2003

8

31634

TUV

NTN-NIDEC (Zhejiang) Corporation

2005

1

02005E10013ROL

CNAB

GUANGZHOU NTN-YULON DRIVETRAIN CO., LTD.

2005

4

104 043247

TUV

Shanghai NTN Corporation

2005

7

CHO5/0489

SGS

USA

China

NTN-BOWER Corporation

R&D costs related to environmental conservation

Soil remediation

0

Month

Head Office

Equipment costs and peripherals
for changing to inverters(motors, illumination, air conditioners)

Greening and beautification out ofcompany grounds

1,193

30 NTN Corporate Social Responsibility Report 2006

Maintenance, inspection, and managementof environmental equipment(dust collectors, particulate smoke removal
devices,wastewater treatment equipment)

Registration

Year(Sites included are: Kuwana Works, Iwata Works, Okayama Works, Takarazuka Works, Nagano Works, NTN
Kongo Corporation, NTN Mikumo Co., Ltd., NTN Engineering Plastics Corporation, NTN Powder Metal Corporation, Hikari
Seiki industry Co., Ltd., NTN Casting Corporation, NTN Omaezaki Corporation, NTN Mie Corporation and the Head Office.)

Details

1

Grand total

6) Environmental remediation expenses

Registration certificateof Shanghai NTN Corp.

NTN USA Corporation

Classification of Environmental Preservation Costs

Resource recycling
expenses356

Certified Operating Sites

Unit: million yen / year
Environmental Equipment Investment

Global environmental
preservation expenses

376

Use circulating
water

Manufacturing Process

Environmental preservation costs

Pollution prevention
costs

Grand total(Reference) Grand total for previous year

Present State of ISO 14001 Certifications
Material
recycleObtained collectively through the multi-site method

1) Cost of in-factory facilities(Environmental preservation costfor inhibiting environmental
hazards causedby business activities)

Unit: million yen / year

Details (for fiscal 2005)

CO2 emission rate

Fuel
Water
Electricity(crude oil equivalent) 532,358 thousand kWh 2,293 thousand m3
21,954kl

In fiscal 2005, we spent 1.193 billion yen on capital investment for environmental conservation, and otherenvironmental conservation costs
were 3.433 billion yen, for a total of
4.626 billion yen. The economic benefit from these measures amounted
to 376 million yen, far exceeding thefigure for the previous year’s benefit.

Environmental
Accounting

Indicator

EnergySecondary material
about 20,200t

Financial effect of environmental preservation activities

Impact on Environmental preservation

Environmental Management

For appropriate environmental management, a management system is critical. At NTN, we are striving
to grasp the entire picture of environmental costs by analyzing conservation expenses. We are also
working to expand ISO 14001 certifications and implement environmental audits so that we canengage in more efficient environmental management.

Operating Sites expected to be Certified.
Year/Month Obtained
Area
China

Operating Site
Changzhou NTN-Guangyang Corporation

Year

Month

2007

5

NTN Corporate Social Responsibility Report 2006

31

Environmental Management

Environmental Management

Business Activities andEnvironmental Hazard
Production for the entire NTNGroup (steel and secondary inputs)
totaled 379,000 tons, 30% greaterthan the previous fiscal year. As a result of our energy conservation andzero emission (zero waste) efforts,
however, we were able to limit CO2
emissions to a mere 4% increaseover the previous year.

INPUT

Raw Material

Steel about
358,800t

Result (for fiscal 2005)

Items

Amount18% reduction relative to fiscal 1997

117

Reduction of waste

Recycle rate 99%

Profit from sale of valuable materials
such as metal sludge

Profit from sale of saleable
recyclable materials

Reduction in amount of paper purchased

29% reduction since fiscal 1998

Results of energy conservationfrom air conditioning & illumination

149

Cost reductions through energy
conservation

Reduction in amount of Styrofoam purchased

81% reduction since fiscal 1999

Results of introducing the grinding
swarf briquetting machine, etc.

110

Waste processing cost reductions
through recycling

Ther mal
recycleUse exhaust
heat

OUTPUT
CO 2 emission
255,426t

Industrial
waste 395t

Product

Wastewater
1,978 thousand m3[Accounting standard for environmental accounting]・Applicable period: April 2005 to March 2006
・Organizational scope: the 13 manufacturing
sites in Japan that have ISO 14001 certification (multi-site)
・Conforms to Japan’s Ministry of theEnvironment “Environmental Accounting
Guideline - 2005 edition”

At NTN, we are working to obtain
ISO 14001 certification for all sites,
both domestic and international. To
efficiently carry out unified environmental management at all of ourcompanies, we have obtained multisite certification for 14 domestic sites
and 12 overseas sites obtained ISO
14001 certification as well.
In fiscal 2005, Mie Corporation (Kuwana City, Mie Prefecture) obtained
multi-site certification, and overseas,
Shanghai NTN Corporation obtained
the certification

Japan-registration
certificate (multi-site)

Operating Site
Area

Domestic

Environmental Preservation Investment Costs

Amount2) Upstream/downstream expenses(Environmental preservation cost for inhibiting
environmental hazard caused upstream anddownstream from the business activities)

52

59

22

Details
Environmental equipment(dust collectors, particulate smoke removal
devices,wastewater treatment equipment)
Energy conservation equipment such as
new inverters (motors, illumination, airconditioning), equipment to natural gas
Grinding swarf briquetting machines,
recycling of waste, equipment to reduce
waste3) Management activity expenses (Environmental
preservation cost for management activities)

04) R&D expenses (Environmental preservation cost for R&D)
5) Social activity expenses(Environmental preservation cost for social activities)

1,060
0

Amount

161

67

484

5

0

236

R&D equipment related to environmental conservation

2,441

Company Name

Year/Month Obtained
Plant Name

Equipment cost for grinding swarf briquetting
machines (maintenance costs,intermediate
processing costs for waste material,
transportation cost, etc.)
Green procurement(OA devices, paper, stationery, etc.)
Labor costs for EMS. Disclosure of information(advertising, environmental action report)
Greening and beautification ofcompany grounds

38
3,433

(Reference) Grand total for previous year

975

3,401

Registration No.

Registration Agency

1999

11

JSAE176

JSA

2000

4

0112005

LRQA

American NTN Bearing
Manufacturing Corporation

Elgin Plant

2000

6

111994

LRQA

Schiller Park Plant

2000

9

112115LRQA

Macomb Plant

2000

6

111998LRQA

Hamilton Plant

2000

6

111999LRQA

NTN-BCA Corporation, Lititz Plant

2000

7

A8699

UL

NTN Driveshaft, Inc.

1999

12

A8478

UL

CanadaNTN Bearing Corporation of Canada, Canada Plant

1999

7

287

KPMG

Germany

NTN Kugellagerfabrik (Deutschland) GmbH, Mettman Plant

1999

6

201167-2

LRQA

FranceNTN Transmissions Europe

2003

1

19479

AFAQ

ThailandNTN Manufacturing Thailand

2003

8

31634

TUV

NTN-NIDEC (Zhejiang) Corporation

2005

1

02005E10013ROL

CNAB

GUANGZHOU NTN-YULON DRIVETRAIN CO., LTD.

2005

4

104 043247

TUV

Shanghai NTN Corporation

2005

7

CHO5/0489

SGS

USA

China

NTN-BOWER Corporation

R&D costs related to environmental conservation

Soil remediation

0

Month

Head Office

Equipment costs and peripherals
for changing to inverters(motors, illumination, air conditioners)

Greening and beautification out ofcompany grounds

1,193

30 NTN Corporate Social Responsibility Report 2006

Maintenance, inspection, and managementof environmental equipment(dust collectors, particulate smoke removal
devices,wastewater treatment equipment)

Registration

Year(Sites included are: Kuwana Works, Iwata Works, Okayama Works, Takarazuka Works, Nagano Works, NTN
Kongo Corporation, NTN Mikumo Co., Ltd., NTN Engineering Plastics Corporation, NTN Powder Metal Corporation, Hikari
Seiki industry Co., Ltd., NTN Casting Corporation, NTN Omaezaki Corporation, NTN Mie Corporation and the Head Office.)

Details

1

Grand total

6) Environmental remediation expenses

Registration certificateof Shanghai NTN Corp.

NTN USA Corporation

Classification of Environmental Preservation Costs

Resource recycling
expenses356

Certified Operating Sites

Unit: million yen / year
Environmental Equipment Investment

Global environmental
preservation expenses

376

Use circulating
water

Manufacturing Process

Environmental preservation costs

Pollution prevention
costs

Grand total(Reference) Grand total for previous year

Present State of ISO 14001 Certifications
Material
recycleObtained collectively through the multi-site method

1) Cost of in-factory facilities(Environmental preservation costfor inhibiting environmental
hazards causedby business activities)

Unit: million yen / year

Details (for fiscal 2005)

CO2 emission rate

Fuel
Water
Electricity(crude oil equivalent) 532,358 thousand kWh 2,293 thousand m3
21,954kl

In fiscal 2005, we spent 1.193 billion yen on capital investment for environmental conservation, and otherenvironmental conservation costs
were 3.433 billion yen, for a total of
4.626 billion yen. The economic benefit from these measures amounted
to 376 million yen, far exceeding thefigure for the previous year’s benefit.

Environmental
Accounting

Indicator

EnergySecondary material
about 20,200t

Financial effect of environmental preservation activities

Impact on Environmental preservation

Environmental Management

For appropriate environmental management, a management system is critical. At NTN, we are striving
to grasp the entire picture of environmental costs by analyzing conservation expenses. We are also
working to expand ISO 14001 certifications and implement environmental audits so that we canengage in more efficient environmental management.

Operating Sites expected to be Certified.
Year/Month Obtained
Area
China

Operating Site
Changzhou NTN-Guangyang Corporation

Year

Month

2007

5

NTN Corporate Social Responsibility Report 2006

31

Environmental Management

Environmental Management

Environmental Management

Environmental Auditing

NTN employees withqualifications(As of March 31 , 2006)● Internal auditing and crossauditing
In addition to ISO 14001 assessments by external organizations, wehave introduced “internal audits”
done internally by the operation site,
as well as “cross-auditing” done by aseparate NTN entity. Cross-auditing
is an opportunity for both the target
site and the personnel performing
the audit to learn useful things andidentify potential improvements. This
provides excellent opportunities toimprove the environmental management system at many sites.
● Customer audits
In fiscal 2005, we received two
customer audits, in addition to those
performed in 2004. These audits focused on the management of environmentally hazardous substancesand NTN was commended for ourmanagement structure and processes.

● ISO 14001 renewal assessments
In October of 2005, we received a“migration” assessment because of
an update to the “ISO 14001: 2004
standard”. This was carried out at
the same time as a renewal assessment for the NTN Group’s domestic
multi-site certifications and NTN successfully passed both the renewal
and the migration audits. Also, NTN
Mie Corp.’s certification was incorporated into the NTN Japan Group’s
multi-site certification.

The more legal requirements become diverse and complex, the more
swiftly and accurately we must respond. NTN encourages employees
to obtain various qualifications to improve NTN’s capabilities.

Number of Employeeswith Qualification

Major Qualifications
Energy Management
Qualifications

Pollution Prevention Manager

High-pressure Gas
Manufacturing and
Security Manager

Chief Electrical Engineer

Qualified electrical energy manager

18

Qualified thermal energy manager

20

Air (categories 1-4)

29

Water (categories 1-4)

48

Noise

22

Vibration

17

Refrigerating equipment categories 2, 3

11Categories A and B Chemical

12

Category C Chemical/liquefied petroleum gas

75

Category C Chemical/special test items

49

Category B Machinery

2

Categories 1, 2

5Category 3

41
5

Environmental Measurement Analyst
Working Environment Measurement Expert (Type 1, Type 2)2Manager of Specially Controlled Industrial Waste

25

Manager of intermediate treatment facility for industrial waste

5Manager of poisonous and harmful substances

16
3

Assistant Auditor for ISO 14001 Specification

405

Total

Cross-auditing

Environmental audit by customer

ISO 14001 renewal audit

Environmental communication

Responding to legal requirements
Movements to restrict toxic substances inside products started inEurope in recent years and havespread worldwide. Our company regards the protection of the global environment as a priority management
issue and we are proactively working
to eliminate the use of toxic substances from our primary products, bearings and constant velocity joints.

October 2003, we have procured
parts for our bearings that containabsolutely no toxic substances.
Moreover since March 2003, wehave offered alternative materials in
our automotive constant velocity
joints and we have accomplished thecomplete elimination of toxic substances.
● Data analysis and maintenance● Responding to restrictions
on the use of toxic substances
We have implemented the ELV directive (which targets the use of toxic
substances in automobiles) and the
RoHS directive (which targets theuse of these substances in electricaland electronic equipment). Since

To prove that products do not contain environmentally hazardous substances, NTN and its suppliers havecollected information and analysis results on the chemical composition of
NTN products. We maintain databases with the quantity of eachchemical present.

● Supplier meetings and education related to managing environmentally hazardous substances
Laws, regulations, and customer
management standards for the management of environmentally hazardous substances are revised quite
frequently.
To ensure adequate compliancewith local legal requirements within
NTN and in NTN’s supply chain, ourcompany holds supplier meetings,
department-specific worker education, and training for new employees
to share knowledge and information.

The NTN Group actively issues information about our environmental
activities and we are working to enrich our communication.
● To the general public
In order to disseminate the resultsof NTN’s environmental activities, weissue a “CSR Report” (previously, the“Environmental Action Report”). We
also inform the public through ourhome page as well as through newspapers and magazines.

● To people inside the company● Responding to inquiries

We offer environmentally related information that each employee should
know as a matter of course in“TALK21”, the NTN Group Bulletin.
This includes our environmental policy, activity targets, and recent overseas developments (particularly
those in the EU). We expect employees to increase their level of environmental awareness through this bulletin.

In fiscal 2005, there were over
1,000 inquiries about the content ofenvironmentally hazardous substances from our customers, a sign ofthe strong interest in the RoHS directive (which came into effect in July ofthis year). Despite several thousand
substances to be investigated, wewere able to respond to every inquiry
through the total support of our suppliers.
We expect there will be even more
inquiries this year, but because of thecreation of our database of environmentally hazardous substances, wewill be able to answer our customers
quickly and accurately.

NTN Group Bulletin

Training for new employees

Worker education

Supplier meeting
Environmentally hazardous substance database system

32

NTN Corporate Social Responsibility Report 2006

NTN Corporate Social Responsibility Report 2006

33

Environmental Management

Environmental Management

Environmental Management

Environmental Auditing

NTN employees withqualifications(As of March 31 , 2006)● Internal auditing and crossauditing
In addition to ISO 14001 assessments by external organizations, wehave introduced “internal audits”
done internally by the operation site,
as well as “cross-auditing” done by aseparate NTN entity. Cross-auditing
is an opportunity for both the target
site and the personnel performing
the audit to learn useful things andidentify potential improvements. This
provides excellent opportunities toimprove the environmental management system at many sites.
● Customer audits
In fiscal 2005, we received two
customer audits, in addition to those
performed in 2004. These audits focused on the management of environmentally hazardous substancesand NTN was commended for ourmanagement structure and processes.

● ISO 14001 renewal assessments
In October of 2005, we received a“migration” assessment because of
an update to the “ISO 14001: 2004
standard”. This was carried out at
the same time as a renewal assessment for the NTN Group’s domestic
multi-site certifications and NTN successfully passed both the renewal
and the migration audits. Also, NTN
Mie Corp.’s certification was incorporated into the NTN Japan Group’s
multi-site certification.

The more legal requirements become diverse and complex, the more
swiftly and accurately we must respond. NTN encourages employees
to obtain various qualifications to improve NTN’s capabilities.

Number of Employeeswith Qualification

Major Qualifications
Energy Management
Qualifications

Pollution Prevention Manager

High-pressure Gas
Manufacturing and
Security Manager

Chief Electrical Engineer

Qualified electrical energy manager

18

Qualified thermal energy manager

20

Air (categories 1-4)

29

Water (categories 1-4)

48

Noise

22

Vibration

17

Refrigerating equipment categories 2, 3

11Categories A and B Chemical

12

Category C Chemical/liquefied petroleum gas

75

Category C Chemical/special test items

49

Category B Machinery

2

Categories 1, 2

5Category 3

41
5

Environmental Measurement Analyst
Working Environment Measurement Expert (Type 1, Type 2)2Manager of Specially Controlled Industrial Waste

25

Manager of intermediate treatment facility for industrial waste

5Manager of poisonous and harmful substances

16
3

Assistant Auditor for ISO 14001 Specification

405

Total

Cross-auditing

Environmental audit by customer

ISO 14001 renewal audit

Environmental communication

Responding to legal requirements
Movements to restrict toxic substances inside products started inEurope in recent years and havespread worldwide. Our company regards the protection of the global environment as a priority management
issue and we are proactively working
to eliminate the use of toxic substances from our primary products, bearings and constant velocity joints.

October 2003, we have procured
parts for our bearings that containabsolutely no toxic substances.
Moreover since March 2003, wehave offered alternative materials in
our automotive constant velocity
joints and we have accomplished thecomplete elimination of toxic substances.
● Data analysis and maintenance● Responding to restrictions
on the use of toxic substances
We have implemented the ELV directive (which targets the use of toxic
substances in automobiles) and the
RoHS directive (which targets theuse of these substances in electricaland electronic equipment). Since

To prove that products do not contain environmentally hazardous substances, NTN and its suppliers havecollected information and analysis results on the chemical composition of
NTN products. We maintain databases with the quantity of eachchemical present.

● Supplier meetings and education related to managing environmentally hazardous substances
Laws, regulations, and customer
management standards for the management of environmentally hazardous substances are revised quite
frequently.
To ensure adequate compliancewith local legal requirements within
NTN and in NTN’s supply chain, ourcompany holds supplier meetings,
department-specific worker education, and training for new employees
to share knowledge and information.

The NTN Group actively issues information about our environmental
activities and we are working to enrich our communication.
● To the general public
In order to disseminate the resultsof NTN’s environmental activities, weissue a “CSR Report” (previously, the“Environmental Action Report”). We
also inform the public through ourhome page as well as through newspapers and magazines.

● To people inside the company● Responding to inquiries

We offer environmentally related information that each employee should
know as a matter of course in“TALK21”, the NTN Group Bulletin.
This includes our environmental policy, activity targets, and recent overseas developments (particularly
those in the EU). We expect employees to increase their level of environmental awareness through this bulletin.

In fiscal 2005, there were over
1,000 inquiries about the content ofenvironmentally hazardous substances from our customers, a sign ofthe strong interest in the RoHS directive (which came into effect in July ofthis year). Despite several thousand
substances to be investigated, wewere able to respond to every inquiry
through the total support of our suppliers.
We expect there will be even more
inquiries this year, but because of thecreation of our database of environmentally hazardous substances, wewill be able to answer our customers
quickly and accurately.

NTN Group Bulletin

Training for new employees

Worker education

Supplier meeting
Environmentally hazardous substance database system

32

NTN Corporate Social Responsibility Report 2006

NTN Corporate Social Responsibility Report 2006

33

Environmental Management

Conserving the Global Environment● Eliminating halon extinguishers and coolants containing
chlorine■ Annual trends in CO2 emission rate
2.0

Unit: 1,000t /million yen

Unit: 10,000t / year50

1.5
CO2 emission rate
Target for 2010
1.0

25

CO2 emission

with inverters. Each workplace is
steadily producing results.
In addition to these efforts, we aremaking simple changes. For example, turning off unneeded illumination
during lunch helps raise the energy
conservation awareness of employees.
Recently we have been actively
working to use renewable energy
sources such as wind and solar energy.

0.5
CO2 emission■ NTN’s CO2 emission by Energy Source
Heavy oil A 4%
Natural Gas 3%

Kerosene 4%
Butane/propane gas
9%

0

0
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05

(Fiscal year)

NTN has been at the forefront of theindustry and has adopted the “CoolBiz” approach (no-necktie, no-jacket)
at our head office and all company offices in Japan. Spearheaded by the
Ministry of the Environment, office airconditioner temperatures will be set at
28°C during the summer months andcool clothing worn to reduce CO2
emissions.
It is difficult to calculate the exact effect of Cool Biz, but based on a 16%
reduction in electrical consumption inJune at NTN’s head office comparedto the previous June (during peak demand), the company-wide electrical
power savings is estimated at approximately 52,000 kWh/month and a reduction of 31 tons/month of CO2 .

34 NTN Corporate Social Responsibility Report 2006

■ Number of halon extinguishers remaining
Unit: extinguishers

2,000

Target number remaining
1,500

1,000

500
Number of extinguishers remaining
Completephase out0

■ Energy Consumption (Yearly)
532,358,000 kWh
Electricity
Heavy oil A
4.055 kl
Kerosene
4.134 kl
Butane/propane
7,224 tGas
Natural gas
4.032 km3

(Fiscal year)

Petroleum
Electricity 80%● Implementing diverse energy conservation measures
Reducing CO2 emissions throughthe “Cool Biz” program

Halon compounds used to becommon in fire extinguishing agents.
Because it became clear that thebrominated fluourocarbons in thesecompounds are harmful, NTN established a plan for the total eliminationof halon extinguishers and is working
to replace them with alternative extinguishers. In fiscal 2005, we replaced 110 units. There are 570 halon units left in the entire company
but replacement at a steady pace
will eliminate them by 2010.

On the other hand, there are no legal restrictions on coolants containing chlorine which can generate
harmful dioxins during disposal. In
2000, however, we voluntarily decided to eliminate these coolants by
2006 and expect to meet this target.

19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
Ta 06
rge
tf
20 or
10

A significant portion of CO2 emissions, which is the greatest factor inglobal warming, stems from production activities. Production sites canhave the most effect in reducing theamount of CO2 by devising energy
conservation measures and implementing them.
Through the “Monozukuri reforms”
occurring at NTN’s various operatingsites both inside and outside of Japan, we promote efficient production
and various energy conservation
measures are encouraged to further
reduce CO2 emissions.
Our efforts to date include: changing the fuel for heat treatment furnaces, collecting waste heat, maintaining centralized control ofcompressors and air conditioners,
and utilizing illumination equipment

Efforts to Prevent Air Pollution

CO2 emission rate

● Toward the reduction of CO2
outputEnvironmental Management

Efforts to Prevent Global Warming

Promoting radical energy conservation measures with the aidof NEDO
Since the last fiscal year, we havereceived assistance from The New
Energy and Industrial Technology Development Organization (NEDO), an
independent administrative agency.
Using NEDO’s “Guidance for introducing energy conservation measures (energy conservation diagnosis)”
as a stepping-stone, we are moving
ahead with dramatic energy conservation measures. Last year, the operating sites with the greatest energy
consumption – including KuwanaWorks, Iwata Works, and Okayama
Works - received energy conservation
diagnoses. These sites received suggestions for effective improvements
such as using waste heat with cogeneration, energy conservation in heat
treatment furnaces, and the appropriate operationof compressors. Eachsite is going
forward withenergy conservation
modifications.

Energy conservation at NTN
Driveshaft (USA)NTN Driveshaft, which manufactures constant velocity joints in Indiana, USA, recently changed the covering on their plant roof from a blackmaterial that traps solar heat to awhite material that reflects it, reducing the 80°C surface temperature of
the roof by more than 20°C. The
lower roof temperature prevented
the air conditioners from over-cycling, saving approximately
90,000kWh/month of power andeliminating 34 tons/month of CO2 .

Preventing ground and water pollution● Remediating minor VOC pollution at Kuwana Works
Soil contamination can cause serious health and environmental problems if left unaddressed. NTN regards preventing such ground andgroundwater pollution as a vital responsibility and is engaged in forward-facing efforts in this regard.
In November 2002, during a periodic inspection of the groundwaterat Kuwana Works, slight volatile organic compound contamination was
discovered in one of the wells. Thisfinding did not violate the Soil Contamination Countermeasures Law,
but we are voluntarily working to decontaminate this site. At the Works,

What is the “Kimitsu method”?
This is a ground contamination investigation and decontamination method developed in Kimitsu City, Chiba Prefecture. Through this unique investigation
method, contaminated areas are determined with pinpoint precision, allowing
total decontamination to take place efficiently. It allows investigation and decontamination to take place without interrupting operations. NTN previously
used this method with two shutteredsites.

the well water in question is extracted and decontaminated. Since
2004, a ground investigation method
called the “Kimitsu method” hasbeen used to carry out a detailed investigation of Kuwana Works.
The results show that in the areaaround the well there was minor
VOC contamination at three locations. We began decontamination
work at the points with the highest
concentration (the hot spots), utilizing ground air suction and groundwater pumping. We expect to complete decontamination during fiscal
2006.
The contaminated locations all exist under existing buildings, but bysending air and ground water
through pipes set underneath thefloors to the remediation equipment
located outside, we have been able
to get results without interrupting
normal operations.
Since the start of this investigation,
we have been reporting our voluntary remediation to Mie Prefectureand have had them monitor things.
We plan to continue to periodicallyreport our progress.

Taking ground samples

Piping for decontamination

Remediation equipment

NTN Corporate Social Responsibility Report 2006

35

Environmental Management

Conserving the Global Environment● Eliminating halon extinguishers and coolants containing
chlorine■ Annual trends in CO2 emission rate
2.0

Unit: 1,000t /million yen

Unit: 10,000t / year50

1.5
CO2 emission rate
Target for 2010
1.0

25

CO2 emission

with inverters. Each workplace is
steadily producing results.
In addition to these efforts, we aremaking simple changes. For example, turning off unneeded illumination
during lunch helps raise the energy
conservation awareness of employees.
Recently we have been actively
working to use renewable energy
sources such as wind and solar energy.

0.5
CO2 emission■ NTN’s CO2 emission by Energy Source
Heavy oil A 4%
Natural Gas 3%

Kerosene 4%
Butane/propane gas
9%

0

0
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05

(Fiscal year)

NTN has been at the forefront of theindustry and has adopted the “CoolBiz” approach (no-necktie, no-jacket)
at our head office and all company offices in Japan. Spearheaded by the
Ministry of the Environment, office airconditioner temperatures will be set at
28°C during the summer months andcool clothing worn to reduce CO2
emissions.
It is difficult to calculate the exact effect of Cool Biz, but based on a 16%
reduction in electrical consumption inJune at NTN’s head office comparedto the previous June (during peak demand), the company-wide electrical
power savings is estimated at approximately 52,000 kWh/month and a reduction of 31 tons/month of CO2 .

34 NTN Corporate Social Responsibility Report 2006

■ Number of halon extinguishers remaining
Unit: extinguishers

2,000

Target number remaining
1,500

1,000

500
Number of extinguishers remaining
Completephase out0

■ Energy Consumption (Yearly)
532,358,000 kWh
Electricity
Heavy oil A
4.055 kl
Kerosene
4.134 kl
Butane/propane
7,224 tGas
Natural gas
4.032 km3

(Fiscal year)

Petroleum
Electricity 80%● Implementing diverse energy conservation measures
Reducing CO2 emissions throughthe “Cool Biz” program

Halon compounds used to becommon in fire extinguishing agents.
Because it became clear that thebrominated fluourocarbons in thesecompounds are harmful, NTN established a plan for the total eliminationof halon extinguishers and is working
to replace them with alternative extinguishers. In fiscal 2005, we replaced 110 units. There are 570 halon units left in the entire company
but replacement at a steady pace
will eliminate them by 2010.

On the other hand, there are no legal restrictions on coolants containing chlorine which can generate
harmful dioxins during disposal. In
2000, however, we voluntarily decided to eliminate these coolants by
2006 and expect to meet this target.

19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
Ta 06
rge
tf
20 or
10

A significant portion of CO2 emissions, which is the greatest factor inglobal warming, stems from production activities. Production sites canhave the most effect in reducing theamount of CO2 by devising energy
conservation measures and implementing them.
Through the “Monozukuri reforms”
occurring at NTN’s various operatingsites both inside and outside of Japan, we promote efficient production
and various energy conservation
measures are encouraged to further
reduce CO2 emissions.
Our efforts to date include: changing the fuel for heat treatment furnaces, collecting waste heat, maintaining centralized control ofcompressors and air conditioners,
and utilizing illumination equipment

Efforts to Prevent Air Pollution

CO2 emission rate

● Toward the reduction of CO2
outputEnvironmental Management

Efforts to Prevent Global Warming

Promoting radical energy conservation measures with the aidof NEDO
Since the last fiscal year, we havereceived assistance from The New
Energy and Industrial Technology Development Organization (NEDO), an
independent administrative agency.
Using NEDO’s “Guidance for introducing energy conservation measures (energy conservation diagnosis)”
as a stepping-stone, we are moving
ahead with dramatic energy conservation measures. Last year, the operating sites with the greatest energy
consumption – including KuwanaWorks, Iwata Works, and Okayama
Works - received energy conservation
diagnoses. These sites received suggestions for effective improvements
such as using waste heat with cogeneration, energy conservation in heat
treatment furnaces, and the appropriate operationof compressors. Eachsite is going
forward withenergy conservation
modifications.

Energy conservation at NTN
Driveshaft (USA)NTN Driveshaft, which manufactures constant velocity joints in Indiana, USA, recently changed the covering on their plant roof from a blackmaterial that traps solar heat to awhite material that reflects it, reducing the 80°C surface temperature of
the roof by more than 20°C. The
lower roof temperature prevented
the air conditioners from over-cycling, saving approximately
90,000kWh/month of power andeliminating 34 tons/month of CO2 .

Preventing ground and water pollution● Remediating minor VOC pollution at Kuwana Works
Soil contamination can cause serious health and environmental problems if left unaddressed. NTN regards preventing such ground andgroundwater pollution as a vital responsibility and is engaged in forward-facing efforts in this regard.
In November 2002, during a periodic inspection of the groundwaterat Kuwana Works, slight volatile organic compound contamination was
discovered in one of the wells. Thisfinding did not violate the Soil Contamination Countermeasures Law,
but we are voluntarily working to decontaminate this site. At the Works,

What is the “Kimitsu method”?
This is a ground contamination investigation and decontamination method developed in Kimitsu City, Chiba Prefecture. Through this unique investigation
method, contaminated areas are determined with pinpoint precision, allowing
total decontamination to take place efficiently. It allows investigation and decontamination to take place without interrupting operations. NTN previously
used this method with two shutteredsites.

the well water in question is extracted and decontaminated. Since
2004, a ground investigation method
called the “Kimitsu method” hasbeen used to carry out a detailed investigation of Kuwana Works.
The results show that in the areaaround the well there was minor
VOC contamination at three locations. We began decontamination
work at the points with the highest
concentration (the hot spots), utilizing ground air suction and groundwater pumping. We expect to complete decontamination during fiscal
2006.
The contaminated locations all exist under existing buildings, but bysending air and ground water
through pipes set underneath thefloors to the remediation equipment
located outside, we have been able
to get results without interrupting
normal operations.
Since the start of this investigation,
we have been reporting our voluntary remediation to Mie Prefectureand have had them monitor things.
We plan to continue to periodicallyreport our progress.

Taking ground samples

Piping for decontamination

Remediation equipment

NTN Corporate Social Responsibility Report 2006

35

Environmental Management

Creating a Recycling Society

Pellets

Briquettes

CarbonRecycling EAF dust

● Solidification technology
meets pelletization technology
NTN has a history of reducing andrecycling waste products. In particular, NTN pioneered the “grinding
swarf briquetting machine” in 2001,
which takes grinding sludge (metal
waste) that is generated in the bearing manufacturing process and solidifies it for reprocessing in the steelmaking process. It has received
accolades from the market and isbeing used at many manufacturing
sites.
NTN decided to take on the challenge of recycling EAF dust by leveraging the technology that was developed for this swarf briquetting
machine. By mixing EAF and carbon
powder, pellets can be solidified intocylindrical briquettes and reprocessed in electric furnaces, resolving
the dust problem in the work environment. This process does not use
binder, but requires only an appro-

Reprocessed in
the electric furnace(Recycled)

priate amount of moisture, resulting
in cost savings. Completing the picture was combining a pelletizing
technology, one in which stable pellet strength can be obtained after
solidification, with NTN’s briquetting
technology. Daiwa Steel Corp. waschosen as our partner and after joint
development, the “EAF dust briquetter” was completed.

● Contributing to “zero emissions”
The “EAF dust briquetter” is theworld’s first solidification methodthat does not require any binder. Because no binder is used, the advantages are not limited to cost, the additional burden on the environment
from the use of the binder is also
prevented – this is an extremely important point.
Developing this new way to recycle
EAF dust in a low-cost, environmentally friendly way is another chapter
in the history of NTN’s recycling
technology.

The NTN Group has a target toachieve “a recycle rate of 98% ormore” across the entire company,
and we are working toward zero
emissions (zero landfilled waste ). The
recycle rate during fiscal 2005 acrossthe entire company was 99.2%. A
challenge remains in raising the recycle rate for the waste sand and wasteslag generated by the manufacturing
process at NTN Casting Corp. (Izumo
City, Shimane Prefecture). (The recycle rate for fiscal 2005 was 68%, andthe target for fiscal 2006 is 85%).
This company is cooperating with alocal construction association, Tatenui Construction Cooperative to recycle the sand and slag as construction
material and to promote the effective
reuse of waste sand and waste slag.
(Tatenui is the old name for Izumo)

100

landfilled waste in the NTN Group
Unit: t / month

1,000

Recycle rate
75

50

500
Landfilled amount25

Landfilled amount

750

250

0
20
05

0
20
04

The problem of recycling EAF
dust, which is generated in great
quantities, is a problem that any engineer would want to tackle. What
we’ve completed here is somethingthat combines NTN’s briquetting
technology with our pelletizing technology, and is something that theworld has never seen before. We
expect it to be an ace in the hole for
effectively using resources and reducing waste at the same time. We
will continue testing with the aim ofincreasing its eventual popularity.

■ Changes in recycling rate and20
03

Norio Misaki● Promoting the effective use ofwaste sand and waste slag

20
02

EAF Dust

Engineering Dept. Manager and
QA Dept. Manager, Mizushima
Works, Daiwa Steel Corp.

What our R&D Partners have to Say

20
01

During the steelmaking process, a
metal dust called “EAF dust” is generated. Every year, 500,000 tons of
EAF dust is created as a byproductfrom electric furnaces in Japan. Until
now, methods for dealing with EAF
dust have included disposal in landfills as industrial waste or reprocessing along with carbon powder in an

EAF. Recycling this material, however, led to generation of a great
deal of dust which had a significant
negative effect on the working environment. To prevent this dust frombeing generated, a solidifying material (binder) can be added, but there
are cost issues in adding this binder.
Thus, there is high demand for amethod to recycle EAF dust that isboth friendly to the work environment and inexpensive.

Reducing waste products

Recycle rate(%)● Seeking new possibilities fromthe reuse of Electric Arc Furnace (EAF) dust

What our R&D Partners have to Say(Fiscalyear)■ Recycling process for casting slag

Waste
slag

Waste
sand

Environmental Management

Development of eco-conscious products

Pulverizing and separating
waste slag (sorted by
granularity)

Test pavement containing
waste sandDirector, Tatenui Construction
Cooperative
President, Yamaguchi Kensetsu

Wataru Yamaguchi

Izumo City is one of leading
areas for the domestic casting industry, but the amount of waste
products (waste sand and wasteslag) generated by local castingprocesses is ranked 7th in Japan.
Activities promoting the “3Rs” (Reduce, Reuse, Recycle) are being
promoted in Shimane Prefecture
according to a basic environmental plan. In cooperation with local
casting plants including NTN
Casting, our cooperative is working to effectively reuse casting
waste with original technology. Including our “Super Eco Patch”, aproduct that includes waste sandand is certified as a “Shimane
Green Product”, we have a recordof bringing unique new products
to market. We will work together
with the casting industry to use
original technology to effectively
reuse waste products.

Porous decorative pavement
containing waste slag

An original local productAsphalt containing waste sand iscurrently being sold under thename “Super Eco Patch” as apavement repair material. It is receiving attention as a uniqueproduct that uses waste products
from the casting industry, the local
industry in Shimane Prefecture.

The day that NTN Casting will achieve zero
emissions may not bethat far off.

EAF dust briquetter
36 NTN Corporate Social Responsibility Report 2006

NTN Corporate Social Responsibility Report 2006

37

Environmental Management

Creating a Recycling Society

Pellets

Briquettes

CarbonRecycling EAF dust

● Solidification technology
meets pelletization technology
NTN has a history of reducing andrecycling waste products. In particular, NTN pioneered the “grinding
swarf briquetting machine” in 2001,
which takes grinding sludge (metal
waste) that is generated in the bearing manufacturing process and solidifies it for reprocessing in the steelmaking process. It has received
accolades from the market and isbeing used at many manufacturing
sites.
NTN decided to take on the challenge of recycling EAF dust by leveraging the technology that was developed for this swarf briquetting
machine. By mixing EAF and carbon
powder, pellets can be solidified intocylindrical briquettes and reprocessed in electric furnaces, resolving
the dust problem in the work environment. This process does not use
binder, but requires only an appro-

Reprocessed in
the electric furnace(Recycled)

priate amount of moisture, resulting
in cost savings. Completing the picture was combining a pelletizing
technology, one in which stable pellet strength can be obtained after
solidification, with NTN’s briquetting
technology. Daiwa Steel Corp. waschosen as our partner and after joint
development, the “EAF dust briquetter” was completed.

● Contributing to “zero emissions”
The “EAF dust briquetter” is theworld’s first solidification methodthat does not require any binder. Because no binder is used, the advantages are not limited to cost, the additional burden on the environment
from the use of the binder is also
prevented – this is an extremely important point.
Developing this new way to recycle
EAF dust in a low-cost, environmentally friendly way is another chapter
in the history of NTN’s recycling
technology.

The NTN Group has a target toachieve “a recycle rate of 98% ormore” across the entire company,
and we are working toward zero
emissions (zero landfilled waste ). The
recycle rate during fiscal 2005 acrossthe entire company was 99.2%. A
challenge remains in raising the recycle rate for the waste sand and wasteslag generated by the manufacturing
process at NTN Casting Corp. (Izumo
City, Shimane Prefecture). (The recycle rate for fiscal 2005 was 68%, andthe target for fiscal 2006 is 85%).
This company is cooperating with alocal construction association, Tatenui Construction Cooperative to recycle the sand and slag as construction
material and to promote the effective
reuse of waste sand and waste slag.
(Tatenui is the old name for Izumo)

100

landfilled waste in the NTN Group
Unit: t / month

1,000

Recycle rate
75

50

500
Landfilled amount25

Landfilled amount

750

250

0
20
05

0
20
04

The problem of recycling EAF
dust, which is generated in great
quantities, is a problem that any engineer would want to tackle. What
we’ve completed here is somethingthat combines NTN’s briquetting
technology with our pelletizing technology, and is something that theworld has never seen before. We
expect it to be an ace in the hole for
effectively using resources and reducing waste at the same time. We
will continue testing with the aim ofincreasing its eventual popularity.

■ Changes in recycling rate and20
03

Norio Misaki● Promoting the effective use ofwaste sand and waste slag

20
02

EAF Dust

Engineering Dept. Manager and
QA Dept. Manager, Mizushima
Works, Daiwa Steel Corp.

What our R&D Partners have to Say

20
01

During the steelmaking process, a
metal dust called “EAF dust” is generated. Every year, 500,000 tons of
EAF dust is created as a byproductfrom electric furnaces in Japan. Until
now, methods for dealing with EAF
dust have included disposal in landfills as industrial waste or reprocessing along with carbon powder in an

EAF. Recycling this material, however, led to generation of a great
deal of dust which had a significant
negative effect on the working environment. To prevent this dust frombeing generated, a solidifying material (binder) can be added, but there
are cost issues in adding this binder.
Thus, there is high demand for amethod to recycle EAF dust that isboth friendly to the work environment and inexpensive.

Reducing waste products

Recycle rate(%)● Seeking new possibilities fromthe reuse of Electric Arc Furnace (EAF) dust

What our R&D Partners have to Say(Fiscalyear)■ Recycling process for casting slag

Waste
slag

Waste
sand

Environmental Management

Development of eco-conscious products

Pulverizing and separating
waste slag (sorted by
granularity)

Test pavement containing
waste sandDirector, Tatenui Construction
Cooperative
President, Yamaguchi Kensetsu

Wataru Yamaguchi

Izumo City is one of leading
areas for the domestic casting industry, but the amount of waste
products (waste sand and wasteslag) generated by local castingprocesses is ranked 7th in Japan.
Activities promoting the “3Rs” (Reduce, Reuse, Recycle) are being
promoted in Shimane Prefecture
according to a basic environmental plan. In cooperation with local
casting plants including NTN
Casting, our cooperative is working to effectively reuse casting
waste with original technology. Including our “Super Eco Patch”, aproduct that includes waste sandand is certified as a “Shimane
Green Product”, we have a recordof bringing unique new products
to market. We will work together
with the casting industry to use
original technology to effectively
reuse waste products.

Porous decorative pavement
containing waste slag

An original local productAsphalt containing waste sand iscurrently being sold under thename “Super Eco Patch” as apavement repair material. It is receiving attention as a uniqueproduct that uses waste products
from the casting industry, the local
industry in Shimane Prefecture.

The day that NTN Casting will achieve zero
emissions may not bethat far off.

EAF dust briquetter
36 NTN Corporate Social Responsibility Report 2006

NTN Corporate Social Responsibility Report 2006

37

Environmental Management

Environmental Management

What Our Environmental Managers Have To Say

Creating a Recycling Society

Promoting Activities to Protect Resources

At NTN Engineering Plastics (Inabe-gun, Mie Prefecture), we haveswitched the material used in our
trays for shipping molded plastic
products for office machines from
Styrofoam (which carries a large environmental burden), to PET (polyethylene tetraphthalate), which has
excellent recyclability. These PET
trays are molded at the company according to the shape of the product.
Lighter and more compact than theprevious material, they save transportation fuel costs.

● Reduced paper consumption■ Trends in Amount of Styrofoam used100

Unit: million yen

75

50

25

To reduce the amount of paper we
consume, we regularly make doublesided photocopies, and use thebacks of used copy paper. We arepromoting a paperless office throughthe use of e-mail inside the company
to disseminate information. The result has been a 29% reduction in paper use compared to 1998 levels(beating our target of 28%).
■ Annual trends in paper consumption

Completephase out
0
19
99
20
00
20
01
20
02
20
03
20
04
20
05
Ta
rg
et
f
20 or
10

● Reduction of the use of Styrofoam

Unit: ton

150
(Fiscal year)

100

50

PET tray

19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
Ta 05
rg
et
f
20 or
10

0

Activities to Reduce Environmental Impact of Transportation● Responding to the amended
Energy Conservation Law
In April 2006, the “Law Regarding
the Rationalization of Energy Use”
(called the Energy Conservation Law
below) was amended, and shippers
became required to work toward energy conservation. Japan’s energy
consumption continues to grow,particularly in the shipping field.
In this amendment, companies
with more than 30 million ton-km in
annual shipments are “Designated
Shippers”. Starting in April 2007, thelogistics departments of these companies are required to report annually to the government about energy
conservation plans and equipment
investment, and their expected results. Because of this, in fiscal 2006,

38 NTN Corporate Social Responsibility Report 2006

Environmental Management

As NTN spreads globally, how do environmental managers get a grasp of environmental conservation
issues and what kind of initiatives are they taking on? We asked some environmental managers fromaround the world directly so that readers can get an understanding of these issues.

our company started investigating
the amount we ship, and we are investigating whether or not we fall under the category of “Designated
Shippers”.
In the past, NTN has actively promoted energy conservation during
shipping, bolstering the Ministry of
the Environment’s conservation initiatives by, for instance, acting toeliminate vehicle idling during stops.
To fulfill our responsibilities as a shipper under this latest amendment, we
will have a complete structure inplace by holding meetings on theamended Energy Conservation Law
with shipping companies to gain
their understanding and cooperation.
*Shipped load (ton-km) = Transported weight(ton) X transported distance (km)(Fiscal year)Japan
able to promote energy conservation
measures from a new point of view.
We accepted NEDO’s assistance tohave an energy conservation diagnosis
done, and we are currently carrying out
energy conservation modifications.

“How do we pass on a better environment to the next
generation and how do weleave behind a healthfulworld?”● What kind of efforts do you have related to industrial waste?
Illegal dumping by wicked businesses
has become a problem in society. For
more than 10 years, Kuwana Works
has periodically gone to waste processing facilities to do on-site checks.
This is to make certain that NTN’s
waste is being disposed of properly,
and that there is nothing illegal goingon.

● What were the primary environmental conservation measures that you
focused on during fiscal 2005?
In terms of our relationship with thelocal community, we planted moss
phlox in a park close to Kuwana Works
in 2006 as part of “participation in local
greening activities”, which is a primarypart of NTN’s Environmental Activity
Policy. Also, we have always pushed
our environmental conservation activities, but we were starting to get stuck
in a rut. By accepting the opinions of
those outside the company, we were

● As an environmental supervisor,
what do you think are the issues
that should be tackled from here on?
Although I mentioned a bit about thisearlier, the mass media was very interested in the Kyoto Protocol coming
into effect, and I believe that preventing
global warming is the largest issue
from now on. An active stance on thepart of the corporation is regarded to
be a matter of course, but it is more
important for each person to carry out
energy conservation as a consumer
because the CO2 emitted by the aver-Shinichi Hashimoto
Administration Dept. Supervisor,
Kuwana Works

age family has been increasing as a result of the convenient life we live. People all over the world must increase
their awareness with respect to the environment and put serious effort into
this issue so that we can pass on abetter environment to the next generation and leave behind a healthful world.
I believe these are key points.
● What kind of initiatives will KuwanaWorks be carrying out in the future?
This fiscal year we will be implementing the results of last year’s energy
conservation diagnosis and we will beaccomplishing some large-scale energy conservation measures that havebeen proposed. Also, in the past we
have actively been using natural energy
such as using a small hybrid generator(wind and solar power) to power outside lights to illuminate our parking lot
and we will continue to implement global warming prevention measures thatuse clean renewable energy such as
solar power. Also, we will be putting anemphasis on environmental conservation activities that depend on individual
participation such as volunteer greening activities.

NTN Kugellagerfabrik(Deutschland)
G.m.b.H. Mettman Plant
NTN-NIDEC (Zhejiang)
Corporation

Meeting with shipping company
NTN
Transmissions
EuropeKuwana WorksNTN USA
Corporation

Manual for shippers
on how to comply
with the revised Energy Conservation
Law

NTN Corporate Social Responsibility Report 2006

39

Environmental Management

Environmental Management

What Our Environmental Managers Have To Say

Creating a Recycling Society

Promoting Activities to Protect Resources

At NTN Engineering Plastics (Inabe-gun, Mie Prefecture), we haveswitched the material used in our
trays for shipping molded plastic
products for office machines from
Styrofoam (which carries a large environmental burden), to PET (polyethylene tetraphthalate), which has
excellent recyclability. These PET
trays are molded at the company according to the shape of the product.
Lighter and more compact than theprevious material, they save transportation fuel costs.

● Reduced paper consumption■ Trends in Amount of Styrofoam used100

Unit: million yen

75

50

25

To reduce the amount of paper we
consume, we regularly make doublesided photocopies, and use thebacks of used copy paper. We arepromoting a paperless office throughthe use of e-mail inside the company
to disseminate information. The result has been a 29% reduction in paper use compared to 1998 levels(beating our target of 28%).
■ Annual trends in paper consumption

Completephase out
0
19
99
20
00
20
01
20
02
20
03
20
04
20
05
Ta
rg
et
f
20 or
10

● Reduction of the use of Styrofoam

Unit: ton

150
(Fiscal year)

100

50

PET tray

19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
Ta 05
rg
et
f
20 or
10

0

Activities to Reduce Environmental Impact of Transportation● Responding to the amended
Energy Conservation Law
In April 2006, the “Law Regarding
the Rationalization of Energy Use”
(called the Energy Conservation Law
below) was amended, and shippers
became required to work toward energy conservation. Japan’s energy
consumption continues to grow,particularly in the shipping field.
In this amendment, companies
with more than 30 million ton-km in
annual shipments are “Designated
Shippers”. Starting in April 2007, thelogistics departments of these companies are required to report annually to the government about energy
conservation plans and equipment
investment, and their expected results. Because of this, in fiscal 2006,

38 NTN Corporate Social Responsibility Report 2006

Environmental Management

As NTN spreads globally, how do environmental managers get a grasp of environmental conservation
issues and what kind of initiatives are they taking on? We asked some environmental managers fromaround the world directly so that readers can get an understanding of these issues.

our company started investigating
the amount we ship, and we are investigating whether or not we fall under the category of “Designated
Shippers”.
In the past, NTN has actively promoted energy conservation during
shipping, bolstering the Ministry of
the Environment’s conservation initiatives by, for instance, acting toeliminate vehicle idling during stops.
To fulfill our responsibilities as a shipper under this latest amendment, we
will have a complete structure inplace by holding meetings on theamended Energy Conservation Law
with shipping companies to gain
their understanding and cooperation.
*Shipped load (ton-km) = Transported weight(ton) X transported distance (km)(Fiscal year)Japan
able to promote energy conservation
measures from a new point of view.
We accepted NEDO’s assistance tohave an energy conservation diagnosis
done, and we are currently carrying out
energy conservation modifications.

“How do we pass on a better environment to the next
generation and how do weleave behind a healthfulworld?”● What kind of efforts do you have related to industrial waste?
Illegal dumping by wicked businesses
has become a problem in society. For
more than 10 years, Kuwana Works
has periodically gone to waste processing facilities to do on-site checks.
This is to make certain that NTN’s
waste is being disposed of properly,
and that there is nothing illegal goingon.

● What were the primary environmental conservation measures that you
focused on during fiscal 2005?
In terms of our relationship with thelocal community, we planted moss
phlox in a park close to Kuwana Works
in 2006 as part of “participation in local
greening activities”, which is a primarypart of NTN’s Environmental Activity
Policy. Also, we have always pushed
our environmental conservation activities, but we were starting to get stuck
in a rut. By accepting the opinions of
those outside the company, we were

● As an environmental supervisor,
what do you think are the issues
that should be tackled from here on?
Although I mentioned a bit about thisearlier, the mass media was very interested in the Kyoto Protocol coming
into effect, and I believe that preventing
global warming is the largest issue
from now on. An active stance on thepart of the corporation is regarded to
be a matter of course, but it is more
important for each person to carry out
energy conservation as a consumer
because the CO2 emitted by the aver-Shinichi Hashimoto
Administration Dept. Supervisor,
Kuwana Works

age family has been increasing as a result of the convenient life we live. People all over the world must increase
their awareness with respect to the environment and put serious effort into
this issue so that we can pass on abetter environment to the next generation and leave behind a healthful world.
I believe these are key points.
● What kind of initiatives will KuwanaWorks be carrying out in the future?
This fiscal year we will be implementing the results of last year’s energy
conservation diagnosis and we will beaccomplishing some large-scale energy conservation measures that havebeen proposed. Also, in the past we
have actively been using natural energy
such as using a small hybrid generator(wind and solar power) to power outside lights to illuminate our parking lot
and we will continue to implement global warming prevention measures thatuse clean renewable energy such as
solar power. Also, we will be putting anemphasis on environmental conservation activities that depend on individual
participation such as volunteer greening activities.

NTN Kugellagerfabrik(Deutschland)
G.m.b.H. Mettman Plant
NTN-NIDEC (Zhejiang)
Corporation

Meeting with shipping company
NTN
Transmissions
EuropeKuwana WorksNTN USA
Corporation

Manual for shippers
on how to comply
with the revised Energy Conservation
Law

NTN Corporate Social Responsibility Report 2006

39

Environmental Management

What Our Environmental Managers Have To Say

Germany
lution prevention activities, but later expanded to employee health and safety issues and became the Environmental,
Health and Safety (EHS) Committee.

Kevin Bulatek
Corporate Environmental, Health and
Safety Manager, NTN USA Corporation“We’re improving our environmental, health, and safety performance through teamwork”● Tell me about environmental activities
of NTN USA.
NTN USA Corporation began actively
managing environmental issues in 1997
with the formation of the NTN USA Environmental Committee consisting of environmental staff from NTN’s North American companies. Its purpose was toshare information and expertise and work
together to improve environmental compliance at US sites.
● What kinds of things did the Committee focus on?
Initially, the Committee concentrated on
environmental legal compliance and pol-● There seems to be a great emphasison teamwork.
By leveraging the experience and expertise of Committee members with diverse EHS backgrounds, sites are able toreceive ideas and information on programs, plans, projects, and training tohelp better manage issues, and, in turn,
Committee members learn of new andbetter ways from the plants they audit.
● Since its inception, the Committee has expanded to include health and safety in its
mandate. Looking back, how do you feel
about the work that’s been done in all areas?
Since 1997, per employee hour worked,
the aggregate number of work-related injuries and illnesses (I & I) at the plants has
been reduced by 47% (as of 2005), thenumber of I & Is resulting in days awayfrom work, work restrictions, and job
transfers has been reduced by 61%, andthe total number of lost work days from I& Is has dropped by 34%. Environmentally, the plants together have, on an annual basis, reduced or prevented wellover 100 tons of volatile organic compound air emissions, several million gal-lons of waste water and oil, and several
thousands of pounds of hazardous wastefrom being generated, as well as recycled
several hundreds of tons of recyclable
materials and saved hundreds of thousands of dollars. Two plants have also
been awarded a total of five state government Pollution Prevention or Environmental Excellence Awards. These results are
due to the teamwork of management andemployees at each site as well as improvements related to Committee activities.
● The 10th anniversary of the EHS
Committee is approaching, what are
your future goals?
We look forward to working moreclosely with NTN Japan to develop andachieve meaningful environmental targets
and incorporate safety and health activities into our EMSs to further improve performance so that we can help make NTN
the safest bearing company in the world
with the least impact on the environment.

FranceEnvironment and Labor Relations Sect. Manager
Human Resources Dept.
NTN Transmissions Europe (NTE)“The environment is a problem
that everyone should simultaneously consider and act on as
their own individual problem…”● How are you grappling with environmental problems at NTE?
Each employee should be a primaryparticipant in environmental issues, but it
is not something easily dealt with as an

40

NTN Corporate Social Responsibility Report 2006

Helga Petrasincu
NTN Manufacturing Germany, Germany Plant(DMF)
Human Resources Manager“To learn what we can topreserve the environment”● What kind of efforts are you putting inat DMF in terms of educating employees about the environment?
Employees are thoroughly educated on
various environmental problems. We
have adopted a comprehensive environmental education system that includes
new employee job training, periodic education, and special job training done inside and outside the plant. Through theseeducational measures, our employees increase their environmental awareness,gain the necessary knowledge, and learn
how they should work to preserve the environment.

● Describe what’s in the employee environmental education manual.
Every new employee receives an Environmental Training Manual on his first day
at NTN. This manual contains our basic
environmental philosophy, environmental
policies set out by top management, andan annual environmental program to beacted upon every year. This includes declarations such as the following: “Thiscompany shall work to conserve resources, energy, and water, work to reduce
the amount of waste, and work to increase the recycle rate”. These are posted on bulletin boards inside the company so that every employee can see thismessage on a regular basis.
● What is the structure of responsibility
with respect to environmental issues?
I am responsible for environmental
management overall, but in addition tomyself the responsible persons are Horst
Gilles (Environment and waste) and Ulrich
Leffrang (Operational safety). The three ofus are knowledgeable about efforts related to environmental and safety issues,
as well as work and education, and we
respond appropriately to daily questions
from employees.

You are correct. Germany has an extremely high level of interest in environmental protection and there are a multitude of laws related to the environment.
These laws are periodically revised according to the common policies of theGerman government and the EU, and every time this happens, the person responsible for environmental management
must obtain the information and disseminate it throughout the company.
● Your response to the EU’s RoHS directive is an example of this, I suppose.
The management of hazardous substances is a particularly vital issue at
DMF, one that we specially educate employees on. After the education, we confirm that each person properly understands the management of hazardous
substances and is aware of the importance of their duties to make doubly surethat nothing is omitted in management
and that no problems will occur.

● There is a sense that Germany is acountry with extremely strict regulations.

China
individual. The role of the environmental
department is to propose basic policies
and plans of action to improve the environment, but the success of such plans
depends on the participation of employees. In other words, the environment is aproblem that everyone should simultaneously consider and act on as their own
individual problem.

Estelle Guillaume

Environmental Management

United States● You mean total participation, right?
Can you give us an example?
I think separating waste streams is agood example. By separating waste
streams, it is possible to reduce theamount of regular waste (mixed waste). In
the past 3 years, employees have promoted the separation of waste streams in
the workplace, resulting in a drastic decrease in industrial waste.
● Other than separating waste streams,
what kind of other efforts are you engaged in?
After employees carefully sort thewaste, recyclable waste is carried to thespecial recycling center and we requestthat they be recycled into a useful resource.
Also, by collecting and washing gloves
used in the workplace, they can be usedover and over again. By making thegloves that we use here last longer, weare controlling this type of waste from being generated.
● What are your new environmental targets for fiscal 2006?
Our targets are to reduce the wastewater and waste oil per constant velocity
joint produced by 5%, to reduce our water consumption by 5%, to maintain ourelectrical consumption at the current level, and to reduce NTE’s overall gas consumption levels to 3% of the current level. These environmental targets havebeen put on beautiful posters that are
displayed throughout the plant.

Liqin Yuan
Representative of the General Affairs Manager,
General Affairs Dept.
NTN-NIDEC (ZHEJIANG) CORP. (NNSC)“I want to contribute to society through environmental activities”● What kind of approach do you have interms of your environmental efforts?
NNSC obtained ISO 14001 certificationin January of last year, starting our environmental efforts. Ever since its inception,
based on the NTN Environmental Policy,

we have strived to reduce our environmental load and find harmony with society.

ing water and electrical consumption
through conservation is very important.

● What specific activities have been
implemented?
NTN’s environmental policies and different environmental posters are posted sothat employees are constantly aware ofthem, and at the same time, we educate
new employees and have job training
done by outside organizations to increase
the employee awareness of environmental preservation.
Also, we have correctly evaluated andidentified the environmental characteristics of the plant, set appropriate targets,and manage accordingly. For example, tomanage waste, we are effectively using
resources by sorting the waste stream
into hazardous materials, recyclables,
and landfill waste.

● What about things that inevitably havean effect on the environment outsideof the company?
We periodically carry out environmental
measurements of sewage, industrial
wastewater, noise, and environmental
pollutants (such as exhaust from theplant), and we continue to monitor
whether or not we are emitting hazardous
substances. Other than that, we have always been active in holding training activities such as fire extinguisher training,which is useful in the event of a disaster.

● What other efforts are you carrying out?
Eliminating the wasteful use of resources. For example, we believe that reduc-● NNSC is going into its second year ofenvironmental activities, isn’t it?
Yes. As the person responsible for environmental management, I hope to promote activities that will contribute not justto the company, but also to society as awhole.

NTN Corporate Social Responsibility Report 2006

41

Environmental Management

Germany

Helga Petrasincu
NTN Manufacturing Germany, Germany Plant(DMF)
Human Resources Manager“To learn what we can topreserve the environment”● What kind of efforts are you putting inat DMF in terms of educating employees about the environment?
Employees are thoroughly educated on
various environmental problems. We
have adopted a comprehensive environmental education system that includes
new employee job training, periodic education, and special job training done inside and outside the plant. Through theseeducational measures, our employees increase their environmental awareness,gain the necessary knowledge, and learn
how they should work to preserve the environment.

● Describe what’s in the employee environmental education manual.
Every new employee receives an Environmental Training Manual on his first day
at NTN. This manual contains our basic
environmental philosophy, environmental
policies set out by top management, andan annual environmental program to beacted upon every year. This includes declarations such as the following: “Thiscompany shall work to conserve resources, energy, and water, work to reduce
the amount of waste, and work to increase the recycle rate”. These are posted on bulletin boards inside the company so that every employee can see thismessage on a regular basis.
● What is the structure of responsibility
with respect to environmental issues?
I am responsible for environmental
management overall, but in addition tomyself the responsible persons are Horst
Gilles (Environment and waste) and Ulrich
Leffrang (Operational safety). The three ofus are knowledgeable about efforts related to environmental and safety issues,
as well as work and education, and we
respond appropriately to daily questions
from employees.

You are correct. Germany has an extremely high level of interest in environmental protection and there are a multitude of laws related to the environment.
These laws are periodically revised according to the common policies of theGerman government and the EU, and every time this happens, the person responsible for environmental management
must obtain the information and disseminate it throughout the company.
● Your response to the EU’s RoHS directive is an example of this, I suppose.
The management of hazardous substances is a particularly vital issue at
DMF, one that we specially educate employees on. After the education, we confirm that each person properly understands the management of hazardous
substances and is aware of the importance of their duties to make doubly surethat nothing is omitted in management
and that no problems will occur.

● There is a sense that Germany is acountry with extremely strict regulations.

China

Liqin Gu
Representative of the General Affairs Manager,
General Affairs Dept.
NTN-NIDEC (ZHEJIANG) CORP. (NNSC)“I want to contribute to society through environmental activities”● What kind of approach do you have interms of your environmental efforts?
NNSC obtained ISO 14001 certificationin January of last year, starting our environmental efforts. Ever since its inception,
based on the NTN Environmental Policy,

we have strived to reduce our environmental load and find harmony with society.

ing water and electrical consumption
through conservation is very important.

● What specific activities have been
implemented?
NTN’s environmental policies and different environmental posters are posted sothat employees are constantly aware ofthem, and at the same time, we educate
new employees and have job training
done by outside organizations to increase
the employee awareness of environmental preservation.
Also, we have correctly evaluated andidentified the environmental characteristics of the plant, set appropriate targets,and manage accordingly. For example, tomanage waste, we are effectively using
resources by sorting the waste stream
into hazardous materials, recyclables,
and landfill waste.

● What about things that inevitably havean effect on the environment outsideof the company?
We periodically carry out environmental
measurements of sewage, industrial
wastewater, noise, and environmental
pollutants (such as exhaust from theplant), and we continue to monitor
whether or not we are emitting hazardous
substances. Other than that, we have always been active in holding training activities such as fire extinguisher training,which is useful in the event of a disaster.

● What other efforts are you carrying out?
Eliminating the wasteful use of resources. For example, we believe that reduc-● NNSC is going into its second year ofenvironmental activities, isn’t it?
Yes. As the person responsible for environmental management, I hope to promote activities that will contribute not justto the company, but also to society as awhole.

NTN Corporate Social Responsibility Report 2006

41

Environmental Management

Environmental Initiatives at NTN Sites

2454 Tsuchijima, Higashikata,
Kuwana, Mie
Operation started : 1918
Site area: 177,900m2
Main products :Ball bearings,cylindrical roller bearings,
constant velocity joints, steel balls

Heat treatment furnace converted
to run on natural gas

Takarazuka Works
Cleaning up the Muko River riverside

2-1 Toyo-cho, Takarazuka, Hyogo

In an effort to reduce CO2 emissions,
we are converting our heat treatment
equipment to run on natural gas insteadof electricity. In fiscal 2005, we converted 22 pieces of equipment , reducing
the CO2 emissions attributable to heat
treatment equipment by 10% compared to the previous year.
Also, as part of our efforts to recycle
waste, we are recycling our used grinding stones into new grinding stones.

Operation started : 1938
Site area: 88,300m2
Main products :Tapered roller bearings, ball bearings,
inner rings and pins for needle roller
bearings

The grinding stone
recycling process

Iwata Works
1578 Higashikaizuka, Iwata,
Shizuoka
Operation started : 1960
Site area: 226,900m2
Main products :Constant velocity joints,needle roller
bearings,ball bearings,and various
precision equipment

Walkway paving blocks made ofwaste media (grinding stones)

The Muko River, which originates in the
faraway Tamba Highlands, is a clear
stream that seems appropriate in Takarazuka, a famous tourist destination and afavorite place for local resident to takewalks. To clean up the riverside, employees participated as volunteers in the"Mukogawa Riverside Park Beautification
Committee" by picking up garbage, etc.
Also, because Takarazuka works isnext to Takarazuka City Hall, we haveestablished strict voluntary standards
more stringent than the legal requirements to enhance this public area. We
are also actively engaged in greening the
grounds.

Greening our grounds

Nagano Works
Measuring Tenryu River water quality

14017-11 Nakaminowa,
Minowa-machi, Kamiina-gun, Nagano

Last year, the NTN R&D Center installed
walkway paving blocks made of waste media (grinding stones) in various locations
around the building, including in front of
the entrance. There are a total of 10,000
blocks which blend in well with the surrounding greenery and look especiallybeautiful on rainy days.
Moreover, we invite students from local
junior high schools to give them an early
opportunity to think about the environment, and through plant tours we show
them examples of Iwata Works’ environmental efforts in a way that is easy to understand.

Environmental Management

Kuwana Works

Operation started : 1985
Site area: 86,700m2
Main products :Miniature ball bearings,small size ballbearings,cam followers,autotensioners,
and parts feeders

We were able to reduce roof surface
temperature by using a heat shield paintthat reflects sunlight. Because it reduces the load on air conditioners, weplan to apply heat shield paint on all of
our roofs.
We have continuously participated in“Tenryu River Water Environmental Activities” which follows the motto, “Let’s
make Tenryu River safe for swimmingand create a recycling society”. Last
year, employees and their families participated in cleaning the riverside andmonitored water quality for 24 hours.

Tenryu River picnic (Riverside cleanup)

Receiving local junior high school students
for a environmental learning session

Okayama WorksNTN Kongo Corporation
Pipe camera robot

500-1 Hatakeda, Bizen, Okayama
Operation started : 1971
Site area: 175,300m2
Main products :Tapered roller bearings,axle unit
bearings,constant velocity joints,steelballs

1-3-13 Kido Nishimachi, Kawachi
Nagano, Osaka

We check wastewater pipes from theinside and remove sludge, etc., with apipe camera robot.
Since last year we have responded tomany requests from local schools forplant tours, and we are giving these
tours as requested including tours ofenvironmental equipment.

Operation started : 1925
Site area: 38,700m2
Main products :Ball bearings,bearing units,double row
angular contact ball bearings, clutch
release bearings

Reusing rainwater as heat
treatment cooling water

By treating rainwater we were able toreuse it as heat treatment cooling waterand reduce tap water consumption in
our heat treatment processes by 25%.
In addition, we publish “ISO 14001
News” quarterly to increase employee
knowledge. Its slogan is “we will protect
the global environment through individual action”. It outlines both the amendment to the Energy Conservation Law
and the Osaka prefectural global warming prevention ordinances.

Giving an explanation in sign
language on a tour for students
from a school for the deaf

ISO 14001 News
42 NTN Corporate Social Responsibility Report 2006

NTN Corporate Social Responsibility Report 2006

43

Environmental Management

Environmental Initiatives at NTN Sites

2454 Tsuchijima, Higashikata,
Kuwana, Mie
Operation started : 1918
Site area: 177,900m2
Main products :Ball bearings,cylindrical roller bearings,
constant velocity joints, steel balls

Heat treatment furnace converted
to run on natural gas

Takarazuka Works
Cleaning up the Muko River riverside

2-1 Toyo-cho, Takarazuka, Hyogo

In an effort to reduce CO2 emissions,
we are converting our heat treatment
equipment to run on natural gas insteadof electricity. In fiscal 2005, we converted 22 pieces of equipment , reducing
the CO2 emissions attributable to heat
treatment equipment by 10% compared to the previous year.
Also, as part of our efforts to recycle
waste, we are recycling our used grinding stones into new grinding stones.

Operation started : 1938
Site area: 88,300m2
Main products :Tapered roller bearings, ball bearings,
inner rings and pins for needle roller
bearings

The grinding stone
recycling process

Iwata Works
1578 Higashikaizuka, Iwata,
Shizuoka
Operation started : 1960
Site area: 226,900m2
Main products :Constant velocity joints,needle roller
bearings,ball bearings,and various
precision equipment

Walkway paving blocks made ofwaste media (grinding stones)

The Muko River, which originates in the
faraway Tamba Highlands, is a clear
stream that seems appropriate in Takarazuka, a famous tourist destination and afavorite place for local resident to takewalks. To clean up the riverside, employees participated as volunteers in the"Mukogawa Riverside Park Beautification
Committee" by picking up garbage, etc.
Also, because Takarazuka works isnext to Takarazuka City Hall, we haveestablished strict voluntary standards
more stringent than the legal requirements to enhance this public area. We
are also actively engaged in greening the
grounds.

Greening our grounds

Nagano Works
Measuring Tenryu River water quality

14017-11 Nakaminowa,
Minowa-machi, Kamiina-gun, Nagano

Last year, the NTN R&D Center installed
walkway paving blocks made of waste media (grinding stones) in various locations
around the building, including in front of
the entrance. There are a total of 10,000
blocks which blend in well with the surrounding greenery and look especiallybeautiful on rainy days.
Moreover, we invite students from local
junior high schools to give them an early
opportunity to think about the environment, and through plant tours we show
them examples of Iwata Works’ environmental efforts in a way that is easy to understand.

Environmental Management

Kuwana Works

Operation started : 1985
Site area: 86,700m2
Main products :Miniature ball bearings,small size ballbearings,cam followers,autotensioners,
and parts feeders

We were able to reduce roof surface
temperature by using a heat shield paintthat reflects sunlight. Because it reduces the load on air conditioners, weplan to apply heat shield paint on all of
our roofs.
We have continuously participated in“Tenryu River Water Environmental Activities” which follows the motto, “Let’s
make Tenryu River safe for swimmingand create a recycling society”. Last
year, employees and their families participated in cleaning the riverside andmonitored water quality for 24 hours.

Tenryu River picnic (Riverside cleanup)

Receiving local junior high school students
for a environmental learning session

Okayama WorksNTN Kongo Corporation
Pipe camera robot

500-1 Hatakeda, Bizen, Okayama
Operation started : 1971
Site area: 175,300m2
Main products :Tapered roller bearings,axle unit
bearings,constant velocity joints,steelballs

1-3-13 Kido Nishimachi, Kawachi
Nagano, Osaka

We check wastewater pipes from theinside and remove sludge, etc., with apipe camera robot.
Since last year we have responded tomany requests from local schools forplant tours, and we are giving these
tours as requested including tours ofenvironmental equipment.

Operation started : 1925
Site area: 38,700m2
Main products :Ball bearings,bearing units,double row
angular contact ball bearings, clutch
release bearings

Reusing rainwater as heat
treatment cooling water

By treating rainwater we were able toreuse it as heat treatment cooling waterand reduce tap water consumption in
our heat treatment processes by 25%.
In addition, we publish “ISO 14001
News” quarterly to increase employee
knowledge. Its slogan is “we will protect
the global environment through individual action”. It outlines both the amendment to the Energy Conservation Law
and the Osaka prefectural global warming prevention ordinances.

Giving an explanation in sign
language on a tour for students
from a school for the deaf

ISO 14001 News
42 NTN Corporate Social Responsibility Report 2006

NTN Corporate Social Responsibility Report 2006

43

Environmental Management

Environmental Initiatives at NTN Sites

NTN Casting Corporation
Waste sand pneumatic transfer unit

Planting white oaks

970 Ano, Toin-cho, Inabe-gun, Mie
Operation started : 1965
Site area: 20,500m2
Main products :High-performance plastics products
made of the original compounds

Hirata plant

We planted 60 white oaks along theperimeter of the plant grounds to carryout greening and for beautification. We
continue to promote local greening activities.
As the EU RoHS directive’s effective
date approaches, we held a seminarwith 20 cooperating companies to avert
the risk of environmentally hazardous
materials becoming mixed into products. Through this, we were able to gaina greater understanding from our suppliers of the importance of managing
environmentally hazardous materials.

Kisuki plant: 475-1 Nadabun-cho,
Izumo, Shimane: 231-29 Yamagata,
Kisuki-cho, Unnan-shi,
ShimaneOperation started : 1967
Site area: 27,200m2
Main products :Bearing units, plummer blocks, castingmaterial for general industrial machinery

Our casting process had a problem
with waste sand spilling out at relay
points during a conveyor belt transfer.
This negatively impacted the work environment. However, by placing a pneumatic unit underneath the hopper andtransferring it by pipe, we were able toeliminate the problem with spillage andimprove plant cleanliness.
Also, to improve environmental communication with local residents, we invite them to the plant, introduce thepast year’s environmental efforts, andoffer an opportunity to provide feedback.

Holding the joint seminarfor companies on managing
environmentally hazardous materials

NTN Powder Metal Corporation

Meeting with local residents

Hikari Seiki Industry Co., Ltd.
New compressor model with inverter

Planting flowers in the neighborhood

101 Katsutaba, Kanie-cho,Ama-gun, Aichi
Operation started : 1966
Site area: 21,000m2
Main products :Oil-impregnated sintered bearings,
hydrodynamic bearings, and sinteredmechanical components

8 Motohigashikata, Sanmaiden-cho,
Tenri, Nara

Employees participated in a local event
held by Kanie Town in Ama County where
we helped plant boxwood surrounded byflowers in the shape of the letters “EXPO”
on the dike on the left bank of the Nikko
River, which runs through western Aichi
Prefecture, for the opening of the Aichi
Expo.
Also, we carried out job training within
the company in preparation for the RoHS
directive coming into force. This directive
prohibits the use of six substances.

Operation started : 1945
Site area: 9,100m2
Main products :Bearing adaptors, constant velocity
joint components, and seal wear ringfor Shinkansen rail cars

We realized significant energy savings
by installing efficient inverter-controlled
compressors to provide the compressed air used in the plant.
Also, to conserve energy, during“Environmental Month” (June), we conducted a plant-wide inspection tocheck for and repair air leaks on hoses.

Inspecting for air leaks

Posters showing RoHS directives posted

NTN Omaezaki Corporation

NTN Mikumo Co., Ltd.

Local cleanup

Cleanup of the Gonushi Coast

750-1 Onoe, Matsusaka Mie
Operation started : 1988
Site area: 33,000m2
Main products :Needle roller bearings for rocker arms,
various clutches, torque limiter units,spherical rings for constant velocity
joints, plastic molding

4681-3 Sakura, Omaezaki, Shizuoka

We are actively involved in contributing to the local community through employee volunteerism. In addition toplanting trees at Bell Farm agriculturalpark in Matsusaka, numerous employees participated in a cleanup of the Gonushi Coast as a part of the “river andsea clean campaign” held by Matsusaka City.
In addition, by using distillation regeneration equipment to process used oil,
we were able to recycle the oil into the
one that has the same performance as
new oil, resulting in cost savings.

Operation started : 1966
Site area: 13,400m2
Main products :Needle roller bearings

Distillation renewal equipment
44 NTN Corporate Social Responsibility Report 2006

Environmental Management

NTN Engineering Plastics Corporation

All employees, including management,
participated in beautifying the plant -truly a plant-wide effort.
In addition, as a measure to control
the noise from the tumbler process, webuilt a building with greater noise insulation and achieved a reduced noise level.
As well, to prevent discharge of wasteoil, we constructed a state-of-the-art
underground facility for waste oil tanks.

Building with improved noise insulation

NTN Corporate Social Responsibility Report 2006

45

Environmental Management

Environmental Initiatives at NTN Sites

NTN Casting Corporation
Waste sand pneumatic transfer unit

Planting white oaks

970 Ano, Toin-cho, Inabe-gun, Mie
Operation started : 1965
Site area: 20,500m2
Main products :High-performance plastics products
made of the original compounds

Hirata plant

We planted 60 white oaks along theperimeter of the plant grounds to carryout greening and for beautification. We
continue to promote local greening activities.
As the EU RoHS directive’s effective
date approaches, we held a seminarwith 20 cooperating companies to avert
the risk of environmentally hazardous
materials becoming mixed into products. Through this, we were able to gaina greater understanding from our suppliers of the importance of managing
environmentally hazardous materials.

Kisuki plant: 475-1 Nadabun-cho,
Izumo, Shimane: 231-29 Yamagata,
Kisuki-cho, Unnan-shi,
ShimaneOperation started : 1967
Site area: 27,200m2
Main products :Bearing units, plummer blocks, castingmaterial for general industrial machinery

Our casting process had a problem
with waste sand spilling out at relay
points during a conveyor belt transfer.
This negatively impacted the work environment. However, by placing a pneumatic unit underneath the hopper andtransferring it by pipe, we were able toeliminate the problem with spillage andimprove plant cleanliness.
Also, to improve environmental communication with local residents, we invite them to the plant, introduce thepast year’s environmental efforts, andoffer an opportunity to provide feedback.

Holding the joint seminarfor companies on managing
environmentally hazardous materials

NTN Powder Metal Corporation

Meeting with local residents

Hikari Seiki Industry Co., Ltd.
New compressor model with inverter

Planting flowers in the neighborhood

101 Katsutaba, Kanie-cho,Ama-gun, Aichi
Operation started : 1966
Site area: 21,000m2
Main products :Oil-impregnated sintered bearings,
hydrodynamic bearings, and sinteredmechanical components

8 Motohigashikata, Sanmaiden-cho,
Tenri, Nara

Employees participated in a local event
held by Kanie Town in Ama County where
we helped plant boxwood surrounded byflowers in the shape of the letters “EXPO”
on the dike on the left bank of the Nikko
River, which runs through western Aichi
Prefecture, for the opening of the Aichi
Expo.
Also, we carried out job training within
the company in preparation for the RoHS
directive coming into force. This directive
prohibits the use of six substances.

Operation started : 1945
Site area: 9,100m2
Main products :Bearing adaptors, constant velocity
joint components, and seal wear ringfor Shinkansen rail cars

We realized significant energy savings
by installing efficient inverter-controlled
compressors to provide the compressed air used in the plant.
Also, to conserve energy, during“Environmental Month” (June), we conducted a plant-wide inspection tocheck for and repair air leaks on hoses.

Inspecting for air leaks

Posters showing RoHS directives posted

NTN Omaezaki Corporation

NTN Mikumo Co., Ltd.

Local cleanup

Cleanup of the Gonushi Coast

750-1 Onoe, Matsusaka Mie
Operation started : 1988
Site area: 33,000m2
Main products :Needle roller bearings for rocker arms,
various clutches, torque limiter units,spherical rings for constant velocity
joints, plastic molding

4681-3 Sakura, Omaezaki, Shizuoka

We are actively involved in contributing to the local community through employee volunteerism. In addition toplanting trees at Bell Farm agriculturalpark in Matsusaka, numerous employees participated in a cleanup of the Gonushi Coast as a part of the “river andsea clean campaign” held by Matsusaka City.
In addition, by using distillation regeneration equipment to process used oil,
we were able to recycle the oil into the
one that has the same performance as
new oil, resulting in cost savings.

Operation started : 1966
Site area: 13,400m2
Main products :Needle roller bearings

Distillation renewal equipment
44 NTN Corporate Social Responsibility Report 2006

Environmental Management

NTN Engineering Plastics Corporation

All employees, including management,
participated in beautifying the plant -truly a plant-wide effort.
In addition, as a measure to control
the noise from the tumbler process, webuilt a building with greater noise insulation and achieved a reduced noise level.
As well, to prevent discharge of wasteoil, we constructed a state-of-the-art
underground facility for waste oil tanks.

Building with improved noise insulation

NTN Corporate Social Responsibility Report 2006

45

Environmental Management

Environmental Initiatives at NTN Sites

NTN Mie Corporation
Oil leak training

3601-25 Mizono, Tado-cho, Kuwana,
Mie
Operation started : 2004
Site area: 69,600m2
Main products :Ball bearings, needle roller bearings,
tapered roller bearings

At NTN Mie Corp., which began operations 2 years ago, we kicked off efforts
to gain ISO 14001 certification in Aprilof last year and we were incorporated
into the NTN Group’s multi-site certification in November.
Last year, we conducted mock exercises to simulate an oil leak, an event that
could have a grave impact on the environment. Also, as NTN Mie Corp. wasestablished as a Monozukuri model
plant with a reduced burden on the environment, we installed a wind generator (4kW) and a solar power generation
panel (50kW) on the plant roof to utilize
natural energy sources.

Head Office
1-3-17 Kyomachibori, Nishi-ku, Osaka
Operation started : 1918
Site area: 970m2

Solar energy panel

9515 Winona Avenue, Schiller Park,
Illinois 60176-1024, U.S.A.
Operation started : 1971
Site area: 9,700m2
Main products :Ball bearings

In fiscal 2005, we changed to high-efficiency fluorescent lights in our storage
area and were able to reduce power
consumption by 25% while increasing
the brightness inside the building.
In addition, we posted environmentrelated information on site so that we
can raise the environmental awarenessof employees daily.

Wind power generator

Implementationof the both side printing

We have made it a rule to use both sidesof the sheet when copying or printing
documents to reduce paper consumption.
Likewise, we ensure that the backs of fax
sheets are also used.
Osaka City has specified the first day ofeach month to be a “Beautification Day” inwhich residents and businesses are called
on to participate in a wholesale cleanup of
the area. Our company’s volunteer employees have beautified the local environment on the sidewalk along YotsubashiSuji Avenue doing early morning cleanups.

Environmental Management

American NTN Bearing Manufacturing Corporation, Schiller Park Plant
Adoption of high-efficiency
fluorescent lights

Posting of environment
related information

NTN-Bower Corporation, Macomb Plant
Water chiller

711 North Bower Road, Macomb,
Illinois 61455, U.S.A.
Operation started : 1985
Site area: 406,700m2
Main products :Cylindrical roller bearings, tapered roller
bearings

We installed gas radiant heaters in the
new plant expansion to improve heating
efficiency. In addition, we periodicallychecked and repaired compressed airleaks to conserve energy.
By adding an additive to our water
chillers (which cool refrigerant and arepart of the air conditioning system forthe office areas and assembly department), we raised efficiency by 42% andrealized annual cost savings of $6,500.
As a result of these initiatives, electricalconsumption was 15% less and gas
consumption was 24% less in fiscal
2005 than in fiscal 2003.

Cleaning activity aroundthe NTN head officeAmerican NTN Bearing Manufacturing Corporation, Elgin Plant

NTN-Bower Corporation, Hamilton Plant

New rust inhibiting oil supply unit

1500 Holmes Road, Elgin, Illinois
60123-1206, U.S.A.
Operation started : 1975
Site area: 137,000m2
Main products :Axle unit bearings, steel balls

We are working to reduce the Volatileorganic compounds (VOC) found in thevarious oils used in the manufacturing
process.
In fiscal 2005, we switched rust inhibiting oils and associated VOC emissions
were halved.
Also, the Environmental Committee
periodically reviews the environmental
management system aspects matrix,
and follows up to make sure that theplan is achieved.

Operation started : 1985
Site area: 205,600m2
Main products :Tapered roller bearings

Review of the Environmental
Management System aspects matrix.
46 NTN Corporate Social Responsibility Report 2006

Adjusting the furnace burner

2086 Military Street South, Hamilton,
Alabama 35570, U.S.A.

To maintain the optimum gas-air ratio,
we adjusted the furnace burners twice amonth, resulting in a savings of
375ft3/hour (approx. 12%) on #1 Surface Carburizer. Additionally, dramaticgas savings were achieved by replacing
the existing furnace trays with 40%
lighter ones. As a result of these initiatives, electrical consumption was 21%
less and gas consumption was 23%
less in 2005 than in fiscal 2003.

New, lighter tray used forheat treatment (right)
NTN Corporate Social Responsibility Report 2006

47

Environmental Management

Environmental Initiatives at NTN Sites

NTN Mie Corporation
Oil leak training

3601-25 Mizono, Tado-cho, Kuwana,
Mie
Operation started : 2004
Site area: 69,600m2
Main products :Ball bearings, needle roller bearings,
tapered roller bearings

At NTN Mie Corp., which began operations 2 years ago, we kicked off efforts
to gain ISO 14001 certification in Aprilof last year and we were incorporated
into the NTN Group’s multi-site certification in November.
Last year, we conducted mock exercises to simulate an oil leak, an event that
could have a grave impact on the environment. Also, as NTN Mie Corp. wasestablished as a Monozukuri model
plant with a reduced burden on the environment, we installed a wind generator (4kW) and a solar power generation
panel (50kW) on the plant roof to utilize
natural energy sources.

Head Office
1-3-17 Kyomachibori, Nishi-ku, Osaka
Operation started : 1918
Site area: 970m2

Solar energy panel

9515 Winona Avenue, Schiller Park,
Illinois 60176-1024, U.S.A.
Operation started : 1971
Site area: 9,700m2
Main products :Ball bearings

In fiscal 2005, we changed to high-efficiency fluorescent lights in our storage
area and were able to reduce power
consumption by 25% while increasing
the brightness inside the building.
In addition, we posted environmentrelated information on site so that we
can raise the environmental awarenessof employees daily.

Wind power generator

Implementationof the both side printing

We have made it a rule to use both sidesof the sheet when copying or printing
documents to reduce paper consumption.
Likewise, we ensure that the backs of fax
sheets are also used.
Osaka City has specified the first day ofeach month to be a “Beautification Day” inwhich residents and businesses are called
on to participate in a wholesale cleanup of
the area. Our company’s volunteer employees have beautified the local environment on the sidewalk along YotsubashiSuji Avenue doing early morning cleanups.

Environmental Management

American NTN Bearing Manufacturing Corporation, Schiller Park Plant
Adoption of high-efficiency
fluorescent lights

Posting of environment
related information

NTN-Bower Corporation, Macomb Plant
Water chiller

711 North Bower Road, Macomb,
Illinois 61455, U.S.A.
Operation started : 1985
Site area: 406,700m2
Main products :Cylindrical roller bearings, tapered roller
bearings

We installed gas radiant heaters in the
new plant expansion to improve heating
efficiency. In addition, we periodicallychecked and repaired compressed airleaks to conserve energy.
By adding an additive to our water
chillers (which cool refrigerant and arepart of the air conditioning system forthe office areas and assembly department), we raised efficiency by 42% andrealized annual cost savings of $6,500.
As a result of these initiatives, electricalconsumption was 15% less and gas
consumption was 24% less in fiscal
2005 than in fiscal 2003.

Cleaning activity aroundthe NTN head officeAmerican NTN Bearing Manufacturing Corporation, Elgin Plant

NTN-Bower Corporation, Hamilton Plant

New rust inhibiting oil supply unit

1500 Holmes Road, Elgin, Illinois
60123-1206, U.S.A.
Operation started : 1975
Site area: 137,000m2
Main products :Axle unit bearings, steel balls

We are working to reduce the Volatileorganic compounds (VOC) found in thevarious oils used in the manufacturing
process.
In fiscal 2005, we switched rust inhibiting oils and associated VOC emissions
were halved.
Also, the Environmental Committee
periodically reviews the environmental
management system aspects matrix,
and follows up to make sure that theplan is achieved.

Operation started : 1985
Site area: 205,600m2
Main products :Tapered roller bearings

Review of the Environmental
Management System aspects matrix.
46 NTN Corporate Social Responsibility Report 2006

Adjusting the furnace burner

2086 Military Street South, Hamilton,
Alabama 35570, U.S.A.

To maintain the optimum gas-air ratio,
we adjusted the furnace burners twice amonth, resulting in a savings of
375ft3/hour (approx. 12%) on #1 Surface Carburizer. Additionally, dramaticgas savings were achieved by replacing
the existing furnace trays with 40%
lighter ones. As a result of these initiatives, electrical consumption was 21%
less and gas consumption was 23%
less in 2005 than in fiscal 2003.

New, lighter tray used forheat treatment (right)
NTN Corporate Social Responsibility Report 2006

47

Environmental Management

Environmental Initiatives at NTN Sites

NTN Kugellagerfabrik (Deutschland) GmbH, Mettmann Plant
Vacuum distillation unit

Spent sulfuric acid8251 South International Drive,
Columbus, Indiana 47201, U.S.A.
Operation started : 1991
Site area: 480,000m2
Main products :Constant velocity joints

In the past, the spent sulfuric acidfrom the manufacturing process was
disposed as waste. However, we negotiated with a processing company tohave them use this spent sulfuric acid
instead of purchasing fresh acid. This
reduced waste costs to zero for thisacid.
Also, by sending cardboard to a recycler, we were able to divert 700 tons ofwaste from landfill.

NTN Strasse 1-3 40822 Mettmann,
F.R. Germany
Operation started : 1972
Site area: 62,300m2
Main products :Ball bearings, angular unit bearings,
autotensioners

By passing used oil-water mixture
through a vacuum distillation unit andseparating it into oil and water, it became possible for the separated water
to be treated by regular wastewater
treatment and to reduce the amount ofwaste oil processed by 2%.
Also, by implementing checks forcompressed air leaks from equipment
and piping, we reduced electrical consumption.

Checking for equipment air leaks

Compressed cardboard.

NTN-BCA Corporation, Lititz Plant

NTN Transmissions Europe
Outside smoking space

Variable-speed drive scroll compressor

401 West Lincoln Avenue, Lititz,
Pennsylvania 17543-7020, U.S.A.
Operation started : 1997
Site area: 102,000m2
Main products :Ball bearings, needle roller bearings,
rocker arm bearings, EM couplings

Environmental Management

NTN Driveshaft, Inc.

We installed a variable-speed drive scroll
compressor to help increase plant capacity. By doing this we are now able to adjust
the amount of compressed air according
to what is needed in the plant, reducing
electrical consumption by 10%.

Z.A. des Tremelieres Communaute
Urbaine du Mans 72704 Allonnes
Cedex, France
Operation started : 2000
Site area: 456,000m2
Main products :Constant velocity joints

The plant improved indoor air quality
by prohibiting indoor smoking and installing systems to evacuate fumes out of
the building from the heat treatment furnace and the grinding machine. Thus,
there is less need to replenish the air inseasons when heating is required enabling us to reduce natural gas consumption for heating.
Also, we created posters showing the
new environmental targets for fiscal
2006 and posted them in the plant to increase employee knowledge and awareness.
Poster of theenvironmental targets

NTN Bearing Corporation of Canada, Canada Plant

NTN Manufacturing Thailand
Returnable plastic tote

6740 Kitimat Road, Mississauga,
Ontario, L5N 1M6, Canada
Operation started : 1973
Site area: 61,500m2
Main products :Ball bearings, angular unit bearings

48 NTN Corporate Social Responsibility Report 2006

A new production line was originally
started with cardboard boxes andwood pallets, but in 2005, we changed
to 100% returnable packaging. By using 42,000 plastic totes instead of cardboard boxes, we reduced cardboard
usage by over 1 tons.
Our building expansion was built using
a state-of-the-art heat recovery systemthat uses waste compressor heat in thewinter to pre-heat incoming air. In recognition of this, we received an award
for energy efficiency from the Natural
Resources Department of the federal
government.

Checking for air leaks

111/2 Moo 4,Tambol Pluakdaeng, Amphur
Pluakdaeng, Rayong 21140, Thailand
Operation started : 1999
Site area: 114,800m2
Main products :Constant velocity joints, hub bearings,
needle roller bearings, autotensioners,
needle rollers for rocker arms,
hydrodynamic BEARPHITE

Award for energy efficiency from the
Natural Resources Department

We periodically replaced the cooling
oil in the compressors and cleaned the
air filters to control energy losses andincrease operating efficiency. In addition, we conducted our annual checkfor compressed air leaks from our piping to prevent the over-cycling of ourcompressors.
Also, we saved energy by adopting
pull string switches for our lighting andturning on the lights only when needed.

Fluorescent light with pull switch

NTN Corporate Social Responsibility Report 2006

49

Environmental Management

Environmental Initiatives at NTN Sites

NTN Kugellagerfabrik (Deutschland) GmbH, Mettmann Plant
Vacuum distillation unit

Spent sulfuric acid8251 South International Drive,
Columbus, Indiana 47201, U.S.A.
Operation started : 1991
Site area: 480,000m2
Main products :Constant velocity joints

In the past, the spent sulfuric acidfrom the manufacturing process was
disposed as waste. However, we negotiated with a processing company tohave them use this spent sulfuric acid
instead of purchasing fresh acid. This
reduced waste costs to zero for thisacid.
Also, by sending cardboard to a recycler, we were able to divert 700 tons ofwaste from landfill.

NTN Strasse 1-3 40822 Mettmann,
F.R. Germany
Operation started : 1972
Site area: 62,300m2
Main products :Ball bearings, angular unit bearings,
autotensioners

By passing used oil-water mixture
through a vacuum distillation unit andseparating it into oil and water, it became possible for the separated water
to be treated by regular wastewater
treatment and to reduce the amount ofwaste oil processed by 2%.
Also, by implementing checks forcompressed air leaks from equipment
and piping, we reduced electrical consumption.

Checking for equipment air leaks

Compressed cardboard.

NTN-BCA Corporation, Lititz Plant

NTN Transmissions Europe
Outside smoking space

Variable-speed drive scroll compressor

401 West Lincoln Avenue, Lititz,
Pennsylvania 17543-7020, U.S.A.
Operation started : 1997
Site area: 102,000m2
Main products :Ball bearings, needle roller bearings,
rocker arm bearings, EM couplings

Environmental Management

NTN Driveshaft, Inc.

We installed a variable-speed drive scroll
compressor to help increase plant capacity. By doing this we are now able to adjust
the amount of compressed air according
to what is needed in the plant, reducing
electrical consumption by 10%.

Z.A. des Tremelieres Communaute
Urbaine du Mans 72704 Allonnes
Cedex, France
Operation started : 2000
Site area: 456,000m2
Main products :Constant velocity joints

The plant improved indoor air quality
by prohibiting indoor smoking and installing systems to evacuate fumes out of
the building from the heat treatment furnace and the grinding machine. Thus,
there is less need to replenish the air inseasons when heating is required enabling us to reduce natural gas consumption for heating.
Also, we created posters showing the
new environmental targets for fiscal
2006 and posted them in the plant to increase employee knowledge and awareness.
Poster of theenvironmental targets

NTN Bearing Corporation of Canada, Canada Plant

NTN Manufacturing Thailand
Returnable plastic tote

6740 Kitimat Road, Mississauga,
Ontario, L5N 1M6, Canada
Operation started : 1973
Site area: 61,500m2
Main products :Ball bearings, angular unit bearings

48 NTN Corporate Social Responsibility Report 2006

A new production line was originally
started with cardboard boxes andwood pallets, but in 2005, we changed
to 100% returnable packaging. By using 42,000 plastic totes instead of cardboard boxes, we reduced cardboard
usage by over 1 tons.
Our building expansion was built using
a state-of-the-art heat recovery systemthat uses waste compressor heat in thewinter to pre-heat incoming air. In recognition of this, we received an award
for energy efficiency from the Natural
Resources Department of the federal
government.

Checking for air leaks

111/2 Moo 4,Tambol Pluakdaeng, Amphur
Pluakdaeng, Rayong 21140, Thailand
Operation started : 1999
Site area: 114,800m2
Main products :Constant velocity joints, hub bearings,
needle roller bearings, autotensioners,
needle rollers for rocker arms,
hydrodynamic BEARPHITE

Award for energy efficiency from the
Natural Resources Department

We periodically replaced the cooling
oil in the compressors and cleaned the
air filters to control energy losses andincrease operating efficiency. In addition, we conducted our annual checkfor compressed air leaks from our piping to prevent the over-cycling of ourcompressors.
Also, we saved energy by adopting
pull string switches for our lighting andturning on the lights only when needed.

Fluorescent light with pull switch

NTN Corporate Social Responsibility Report 2006

49

Environmental Management

Environmental Management

Results of the NTN Environmental Action Report
2005 Questionnaire

Environmental Initiatives at NTN Sites

NTN-NIDEC (Zhejiang) Corporation
Display of plan of environmental activities

Pinghu Economic-Development Zone,
Pinghu City, Zhejiang Province, China
Operation started : 2003
Site area: 43,000m2
Main products :Hydrodynamic bearing units

In fiscal 2004, we received ISO 14001
certification and since then we havesteadily implemented various environmental activities. In fiscal 2005, we put
in place a waste storage area, making it
possible to sort and recycle waste andsafely manage hazardous waste.

1. The report

3. The most interesting sections of this report (Multiple answers possible)0

Average
6%

Well done
11%

25

50%

NTN Environmental Policy
Environmental Conservation
Structure and Related Initiatives
Results of Fiscal 2004
Environmental Targets for Fiscal 2005
Business Activities and Environmental
Burden / Environmental Accounting

Waste storage area
Very well done
83%

Active Development of Environmentally
Friendly Products
Environmental Management System

Guangzhou NTN-YULON Drivetrain CO., LTD.

Expansion of our Environmental
Management System

Waste oil storage area

No.11 Jun Da Road, East Dong-Peng
Avenue, East District of Guangzhou
Economic and Technological
Development Zone, Guangzhou,
Guangdong Province, China
Operation started : 2003
Site area: 52,800m2
Main products :Constant velocity joints

2. NTN’s environmental efforts

Up until now, we had a processing
company dispose of our waste oil, but
recently we established a storage area
for waste recycling containers to create
a way to recycle waste oil.
Also, by changing the colors of thecontainers for each type of waste, we
made it easy for employees to correctly
sort their waste.

Environmental Communications
Not very valuable : 0
Not at all valuable: 0

Efforts to Prevent Global Warming
Reducing Waste Materials
Reducing Air, Ground, and Water Pollution

Valuable
22%

Promotion of resource
conservation activities
Conservation Measuresrelated to Shipping
TOPICS/ Construction of NTN R&D Center

Waste sorting and storage area

Shanghai NTN Corporation

Quite valuable
78%
Environmental Conservation
Efforts at NTN Operating Sites

4. Opinions and suggestions concerning this report
Obtained ISO 14001 certification

No.666, Nanle Road, Songjiang
Industrial Zone, Songjiang, Shanghai,
China
Operation started : 2003
Site area: 264,500m2
Main products :Hub bearings, Parts for constantvelocity joints, Ball bearings, torquelimiter units

In fiscal 2004, we began our efforts toobtain ISO 14001 certification, and received this certification in July 2005.
Each employee, determined to dowhat they can, is setting attainable targets and is starting environmental activities such as sorting waste streams.

It was very informative and it will assist in the creation of futureenvironmental objectives and targets.
I appreciate its transparency as an environmental report, as it showednegative aspects (the ground pollution problem) as well.

I think it would be even more convincing if you had interviews withpeople from different departments. I’d really like to hear about whatkind of difficulties they faced.
I think you should have more graphs (bar graphs and pie charts) sothat it’s easy for regular people to understand.

It conveyed NTN’s high level of environmental awareness.
Perhaps you should have articles on environmental efforts by different
operating sites regardless of whether or not they are inside or outside
Japan.

It would be most helpful if you could show specific examples of what
each operating site is doing in their workplace.

The environmental consciousness of employees is important, but I
would like you to show how you educate your employees so that they
have this consciousness.

Waste sorting and storage area
50 NTN Corporate Social Responsibility Report 2006

NTN Corporate Social Responsibility Report 2006

51

Environmental Management

NTN conducted this survey in order to hear everyone’s opinions through the Report.
We would like to thank everyone who cooperated in this survey and present the following results.

Environmental Management

Environmental Management

Results of the NTN Environmental Action Report
2005 Questionnaire

Environmental Initiatives at NTN Sites

NTN-NIDEC (Zhejiang) Corporation
Display of plan of environmental activities

Pinghu Economic-Development Zone,
Pinghu City, Zhejiang Province, China
Operation started : 2003
Site area: 43,000m2
Main products :Hydrodynamic bearing units

In fiscal 2004, we received ISO 14001
certification and since then we havesteadily implemented various environmental activities. In fiscal 2005, we put
in place a waste storage area, making it
possible to sort and recycle waste andsafely manage hazardous waste.

1. The report

3. The most interesting sections of this report (Multiple answers possible)0

Average
6%

Well done
11%

25

50%

NTN Environmental Policy
Environmental Conservation
Structure and Related Initiatives
Results of Fiscal 2004
Environmental Targets for Fiscal 2005
Business Activities and Environmental
Burden / Environmental Accounting

Waste storage area
Very well done
83%

Active Development of Environmentally
Friendly Products
Environmental Management System

Guangzhou NTN-YULON Drivetrain CO., LTD.

Expansion of our Environmental
Management System

Waste oil storage area

No.11 Jun Da Road, East Dong-Peng
Avenue, East District of Guangzhou
Economic and Technological
Development Zone, Guangzhou,
Guangdong Province, China
Operation started : 2003
Site area: 52,800m2
Main products :Constant velocity joints

2. NTN’s environmental efforts

Up until now, we had a processing
company dispose of our waste oil, but
recently we established a storage area
for waste recycling containers to create
a way to recycle waste oil.
Also, by changing the colors of thecontainers for each type of waste, we
made it easy for employees to correctly
sort their waste.

Environmental Communications
Not very valuable : 0
Not at all valuable: 0

Efforts to Prevent Global Warming
Reducing Waste Materials
Reducing Air, Ground, and Water Pollution

Valuable
22%

Promotion of resource
conservation activities
Conservation Measuresrelated to Shipping
TOPICS/ Construction of NTN R&D Center

Waste sorting and storage area

Shanghai NTN Corporation

Quite valuable
78%
Environmental Conservation
Efforts at NTN Operating Sites

4. Opinions and suggestions concerning this report
Obtained ISO 14001 certification

No.666, Nanle Road, Songjiang
Industrial Zone, Songjiang, Shanghai,
China
Operation started : 2003
Site area: 264,500m2
Main products :Hub bearings, Parts for constantvelocity joints, Ball bearings, torquelimiter units

In fiscal 2004, we began our efforts toobtain ISO 14001 certification, and received this certification in July 2005.
Each employee, determined to dowhat they can, is setting attainable targets and is starting environmental activities such as sorting waste streams.

It was very informative and it will assist in the creation of futureenvironmental objectives and targets.
I appreciate its transparency as an environmental report, as it showednegative aspects (the ground pollution problem) as well.

I think it would be even more convincing if you had interviews withpeople from different departments. I’d really like to hear about whatkind of difficulties they faced.
I think you should have more graphs (bar graphs and pie charts) sothat it’s easy for regular people to understand.

It conveyed NTN’s high level of environmental awareness.
Perhaps you should have articles on environmental efforts by different
operating sites regardless of whether or not they are inside or outside
Japan.

It would be most helpful if you could show specific examples of what
each operating site is doing in their workplace.

The environmental consciousness of employees is important, but I
would like you to show how you educate your employees so that they
have this consciousness.

Waste sorting and storage area
50 NTN Corporate Social Responsibility Report 2006

NTN Corporate Social Responsibility Report 2006

51

Environmental Management

NTN conducted this survey in order to hear everyone’s opinions through the Report.
We would like to thank everyone who cooperated in this survey and present the following results.

CSR Report 2006

CSR Report
2006
Corporate Social Responsibility Report

NTN Corporation● For further information about this CSR report contact:

1-3-17 Kyomachibori, Nishi-ku, Osaka, 550-0003 Japan
Phone: 81-6-6449-3561
Fax: 81-6-6449-2592
E-mail: csr_report@osa.ntn.co.jp

PRINTED WITH

SOY INK

TMThis CSR Report was printed with soy-based ink on 100% recycled paper.
Printed in Japan (2006.09.2000)

NTN Corporation

Corporate Social Responsibility Department
Environmental Management Department

NTN Corporation