MID-TERM MANAGEMENT PLAN
May 13, 2021

Takeshi Kawai
Representative Director President Chief Operating Officer
NGK SPARK PLUG CO., LTD.

NGK SPARK PLUG CO., LTD. All Rights Reserved

Contents

1. The vision of NGK Spark Plug
2. Review of the previous mediumterm management plan (FY2016FY2020)
3. New medium-term management
plan (FY2021-FY2024)

NGK SPARK PLUG CO., LTD. All Rights Reserved

11. The vision of NGK Spark Plug

The vision of NGK Spark PlugManagement Philosophy-Slogan-With established trust and confidence inside and outside
the company, we aim to contribute to the peoples of theworld by creating and putting at their proposal newvalues for the future.

CSR and Sustainability Charter
We contribute to develop a sustainable society, thereby
improving our corporate value.
We build relations of trustwith our stakeholders while
making highly transparent
decisions and actions.

We co-create and provide
new value to solving social
issues.

Long-term Management Plan
2040 VISION“Beyond ceramics, eXceeding imagination”

NGK SPARK PLUG CO., LTD. All Rights Reserved21. The vision of NGK Spark PlugSDGs: Major Initiatives, Goals and Outputs
Item

Environment

Responding to Climate
ChangeProviding Environmentally
Friendly Products

Contribution to SDGs

Major Initiatives
Reduction of CO2 emissions

Dissemination and expansion of environmentallyfriendly products

Goals and Outputs
CO2 Emissions: 30% Reduction[compared to that of 2018](2030year)
Sales ratio of precious metal plugs: notless than 50%
Sales ratio of wide range oxygen sensor +NOx Sensor : not less than 50%

Society

Development of fuel cells

CO2 Dissemination of high-efficiency
distributed power supplies with a view touse free hydrogen

Development of unleaded piezoelectric materials

Alternative promotion from leadpiezoelectric materials

Development of sensing IoT business

Improve business efficiency throughautomation, optimization, andgeneralization

Promotion of employment of women, foreign
nationals, and careers

Ratio of women, foreign nationals, andcareer recruits in managerial positions:25%

Examination of a New Personnel System

Improved results of employee satisfaction
surveys

Increasing the ratio of female and foreign
nationals to directors

Ratio of female directors and foreign
nationals: not less than 30%

Increasing the ratio of external directors

Ratio of external directors: not less than
1/3

Risk Management

Business impact analysis (creation of risk maps)
and responses

Disclosure of critical risk extraction
process and countermeasures

Compliance

Survey of employees' awareness and continuous
education

Implementation of compliancequestionnaires and disclosure of results

Information Security

Incident response organization (CSIRT)
maintenance and strengthening of the system

Strengthening activities by professional
committees

Development of Technology,
Products, and Businesses forContributing to the
Resolution of Social Issues

Global Human Resource
Management

Corporate Governance

Governance

NGK SPARK PLUG CO., LTD. All Rights Reserved

31. The vision of NGK Spark Plug

Sustainability promotion : Carbon neutral declaration

日特

NGK SPARK PLUG CO., LTD. All Rights Reserved

AカンパニーContents

1. The vision of NGK Spark Plug
2. Review of the previous mediumterm management plan (FY2016FY2020)
3. New medium-term management
plan (FY2021-FY2024)

NGK SPARK PLUG CO., LTD. All Rights Reserved52. Review of the previous medium-term management plan (FY2016-FY2020)

The outline image of the 7th Mid-Term Management Plan

Slogan:Accelerated development of current
business and new business

NGK SPARK PLUG CO., LTD. All Rights Reserved

62. Review of the previous medium-term management plan (FY2016-FY2020)

Strategic progress and task
Revenue・ Although it was not achieved due to the delay in launching new businesses and the expansion of
Covid-19, it grew to a level close to the target value due to the growth of the ceramic-related business,
excluding foreign exchange..

Operatingprofit・ As the market for ICE related business continued to make additional investments in existing
businesses, the payback phase was delayed and the target value was not reached.

New Business ・ Seeding of new business has progressed, but can't show growth vision
Management
base・ The return on investment is declining. In addition, as investment in existing businesses continued tobe biased, the ratio of investment in growth and new businesses could not be raised.

Strengthening
Current Businesses

Establishing
New Business Pillars• Further growth of strong
business• Seeding of new businesshas progressed, but can't
show growth vision• Made & promoted
Nittoku Way

〇 × △



Expanding market share in China
and IndiaBusiness expansion throughacquisition of CAIRE

Acquired the top share in theexhaust gas sensor market

Business expansion of semiconductor
manufacturing equipment (double
sales)

Established a subsidiary of the fuelcell business (MORIMURA SOFCTECHNOLOGY, CECYLLS)Define focus domains (Mobility,
Environment & Energy, Medical,
Communication)

Could not draw a scenario related
to commercialization, which will be
the pillar of the new business

Establishing Strong
Business Infrastructures

Turning the ceramic PKG business
into the black

NGK SPARK PLUG CO., LTD. All Rights Reserved• ROIC Management is ona half way

Introduction of RHQ organization

Speeding up management decisions
by introducing an executive officer
system

Return on investment is declining

Ambiguity remains in thewhereabouts of responsibility in thedivision system

7

2. Review of the previous medium-term management plan (FY2016-FY2020)

Management goals and Shareholder Returns
Although the market position and scale expansion of the automobile-related businesshave progressed, portfolio conversion and improvement of capital efficiency are issues.

Target of Previous mid-term management plan
FY2016FY2020Previous medium-term
management plan

3,729

4,275

5,200

536

474

1,000

OP(Ratio)

14%

11%

Above 20％

ROIC

9％

6％

Above 13%

RevenueOP

Shareholder Returns
Dividend
payout ratio

NGK SPARK PLUG CO., LTD. All Rights Reserved*Actual rate

FOREX (yen)
US Dollar:115yen,EURO:120yen

During the period of the previous medium-term
management plan
✓Return of payout ratio of 36%✓Continued share buybacks with a total return
ratio of 56%
8

2. Review of the previous medium-term management plan (FY2016-FY2020)

ROIC review
Due to an increase in demand that exceeds expectations for Sparkplug and sensors, we will direct growth investment to automobile related matters and execute investment to increase production inadvance.
・Increased management costs associated with the promotion of
globalization of the automobile-related business・Delay in creating new markets and delaying sales contribution

FOREX

Gross profit
not reached

13％

SG&A
Fixed asset
turnover rate

Response to
ROIC
deterioration

6％
P.32 AThe previous medium-term management plan

ROIC target
NGK SPARK PLUG CO., LTD. All Rights Reserved

Inventory
Turnover rate

P.32 B

P.32 C

P.32 D

FY2020
ROIC actual

9

Contents

1. The vision of NGK Spark Plug
2. Review of the previous mediumterm management plan (FY2016FY2020)
3. New medium-term management
plan (FY2021-FY2024)

NGK SPARK PLUG CO., LTD. All Rights Reserved

103.New medium-term management plan (FY2021-FY2024)

Overview of the medium-term management plan
2040 Vision

SloganBasic
Policy"Existing business" and "new business" are independent and run on both wheels

Business strategy
Priority
IssuesMaximize cash generation by
maximizing return on investment andsuper-efficiency

ICE
BusinessGrowthBusinessAchieve business growth thatexceeds the market growth rate

New
BusinessRealization of new businesses that willbe the pillars of new businesses, andshortening of the business creation cycle

NGK SPARK PLUG CO., LTD. All Rights Reserved

Company-wide crossing
 Further strengthening earning
power through ROIC management
 Promote investment in non-internal
combustion business / conversionof human resources portfolio
113.New medium-term management plan (FY2021-FY2024)

Management goals[Unit: Billion yen]

FY2020

FY2024

Revenue[Unit: Million yen]

428

600

Operating profit[Unit: Million yen]

47

100

Portfolio of Revenue
ICE : Non-ICE

79%:21%

75%：25％60%：40%Operating profit Ratio

11.1%

17%

Above 15%…

FY2029
750

*

ROIC

5.5%

ROE

9.1%

10％
13%

*

Above 10%

Above 12%

*Calculated based on the current business plan
(Does not include additional M & A during the medium-term management plan)
NGK SPARK PLUG CO., LTD. All Rights Reserved

123.New medium-term management plan (FY2021-FY2024)

Efforts to improve profitability
Extract priority measures for ROIC improvement
ROIC
Improved driver

OP Ratio

Cost of sales
Ratio
SG & A
Ratio

ROIC
Medium-term plantarget:10％

NGK SPARK PLUG CO., LTD. All Rights Reserved

Revenue
Asset
TurnoverMeasures for
improvement
A

Increased market share inhigh value-added products

A
C

Improvement of equipment
and labor productivity

B

Cost reduction inindirect department

A

Review of unprofitablebusinesses by setting
business withdrawal rules

Working capitalturnoverD

Fixed asset
turnoverC Reduction of fixed assets in

Focus points during the
medium-term management plan

Reduction of inventories by
optimizing the supply chain

ICE related
13

3.New medium-term management plan (FY2021-FY2024)
Efforts to transform the business portfolio: Introduced an in -house company system

Promote group management at “a small Headquarters
Organization” and accelerate business value according tobusiness position in the policy of Dokuritsu-Jiei
Traditionalorganization

New organizationfrom FY2021
Corporate division

Global Strategy
Headquarters

Role● Planning company-wide strategy● Strengthening global governance function● Promotion of portfolio conversion by
optimal allocation of management resources● Governance of business continuity / withdrawal

Corporate Domain
Business support department

Business company
Business department

Business unit

NGK SPARK PLUG CO., LTD. All Rights Reserved

Business company / split● Transformation into a profit center● Cost reduction through efficiency● Advanced services provided● Improved ability to respond to fluctuations
by introducing systems and mechanisms thatmatch each market environment● Achievement of KPI / KGI for each company
14

3.New medium-term management plan (FY2021-FY2024)

Efforts to transform business portfolio: Business portfolio management

Strengthen Business portfolio management by setting hurdle
rates for each business segment

Investment efficiency

FCF creation(minimization of
investment)

Sales expansion
High Profitability(Strengthening
investment)

ICE Business

Disclosure
segment

Medium- to long-term direction

Spark Plugs
Sensors

Expand cash generation and aim
for even higher profits

Ceramics

Withdrawalor
Revenuestructure reform

GrowthBusiness
Sales expansion(Determining thedirection)

Growth potential
NGK SPARK PLUG CO., LTD. All Rights Reserved

MedicalNew
Businesses

New
Businesses Build a profit structure that is
resistant to changes in theexternal environment andexpand sales
 Business scale growth thatexceeds market growth rate,
improvement of profitability
Discover new businesses that willbe the pillars of new businesses
and build scenarios forcommercialization
15

3.New medium-term management plan (FY2021-FY2024)

Efforts to transform business portfolio : Business continuity / withdrawal
examination flow

Established Business Transformation Division. Monitoring unprofitablebusinesses and judging "business revitalization" or "withdrawal or
business sale, etc."
Monitoring target

Board of Directors

Business Company



Decision and rating to join thecommercialization promotion
headquarters
Appointment of new company
manager

Examining businessdirection

Plan A
Formulation ofbusiness plan

Plan B

Strategy DivisionNGK SPARK PLUG CO., LTD. All Rights ReservedBusiness plan planningand evaluation
Business
Transformation
Division

Business plan decision

Reconstruction plan by M
&ABusiness sale, internal
restructuring, withdrawal
consideration

 Continuous monitoring interms of both quantitativeand qualitative aspects

Judgment of business withdrawal /continuation

Unprofitablebusiness

Business planmanagement audit

16

3.New medium-term management plan (FY2021-FY2024)

Reform for business portfolio conversion: Improvement of company -wide
profitability by introducing BP system

Business Partner (BP) / Company Aims

Providing market-competitive, High-value-added services
Implementation process
Procurement / Accounting / Human Resources / Labor / IT / Public Relations / General Affairs / Intellectual Property Management / Quality Control / Environmental Safety

Improvement ofexpertise

FY2021

FY2022

Grasp

ChangeUnderstanding the current situation

Business improvement

Improving the quality of service

Improve
professional skills by
educating employees



Identify problems andimplement
countermeasures





＋



Cost
reduction

Recognize thecurrent situation ofyour department
from the service
level of othercompanies and make
improvements

Raise awareness as aprofit center from BP's
income statementNGK SPARK PLUG CO., LTD. All Rights Reserved

FY2023

FY2024

Improvement Expansion

Expansion of range

Start preparing forexternal sales
Improve
professional skills by
educating employeesAchieving bothmaximization ofoperational
efficiency andimprovement ofquality

Continuation of businessevaluation andimprovementConsideration andimplementation of
drastic measures whenservice improvement
and cost reduction
cannot be achieved
during the mediumterm management plan
period17

3.New medium-term management plan (FY2021-FY2024)

Cash flow planning
Cash generated in the ICE Business will be used for Growthand New Businesses to transform the business portfolio.
[Unit: Billion yen]

Cash In

Cash OutCash flows fromoperating activities

Cash flows frominvesting activities

410 Billion yen

390 Billion yen

M&A
NewBusiness

ICE
Business

GrowthBusiness

Furthergrowth investment

Borrowing, etc.
80 Billion yen
NGK SPARK PLUG CO., LTD. All Rights Reserved

Shareholder Return(Dividend payout ratio 40%)
100 Billion yen
18

3.New medium-term management plan (FY2021-FY2024)

Shareholder return policy
Policy in the New medium-term management plan

Basic
policy・Consider the optimal balance between the execution of growthinvestment for the future and the soundness of capital, and strive toenhance shareholder returns based on dividends.
・Considering the acquisition of treasury stock in view of theappropriate capital level in the medium term

Dividend
policy・Performance-linked type・Dividend amount determined with a payout ratio of 40%

Dividend amount per share(yen)80

Dividend payout ratio(%)

60
60

60%

70

60

65

42

40
20

70

40%

43.0%

35.2%

34.2%
30.0%

28.7%

0
FY2016NGK SPARK PLUG CO., LTD. All Rights Reserved

40.0%

FY201720%FY2018FY2019FY2020

FY2021(Forecast)19

3.New medium-term management plan (FY2021-FY2024)

Business Strategy : ICE Business

ICE demand forecast
Gasoline / diesel vehicle (ICE) peaks faster, HEVs increase in the medium
term, and ZEVs (zero emission vehicles) increase in the long term
2,500

Global 4W vehicle ownership
FCV

2,000

BEV
1,500

Electricity

PHEV

EV

FHEV
MHEV

DieselICE+Electricity

1,000

Spark Ignition ICE
500

ICE
0

2020

2025
Spark Ignition ICENGK SPARK PLUG CO., LTD. All Rights Reserved

2030
Diesel

2035
MHEV

2040
FHEV

PHEV

2045
BEV

2050
FCV

Our contribution area20

3.New medium-term management plan (FY2021-FY2024)

Business Strategy : ICE BusinessSocial value

Mobility

Responsible for supplying parts for internal combustion engines
as a supplier, and continue to contribute to CO2 reduction with
Well to Wheel
Business value
Maximize cash generation by maximizing return on investment
and super-efficiency

Environmental awareness

External
Environment•••

Transformation of consumer behavior in the after-covid 19 era
Increasing importance to climate change response
Rapid progress toward a carbon-free society

MarketNeeds••

Decarbonization of energy sources
Increased improvement in fuel efficiency due to increase in
HV and PHV

Our Position•

Top global share in spark plugs and exhaust gas sensors

Value
Provided• Speedy response to market demand by concentrated investment inproducts that are directly linked to fuel efficiency and exhaust gas
regulations• Ceramic material technology
21

NGK SPARK PLUG CO., LTD. All Rights Reserved

3.New medium-term management plan (FY2021-FY2024)

Business Strategy : ICE Business
The ratio of high-value-added products that respond to CO2 reduction continues toincrease because of increased demand and increased market share due toheightened fuel efficiency regulations and exhaust gas regulations.

Quantity trends for high value products

Conventional oxygen sensor

Nickel plug
Next generation oxygen sensor

Precious metal plug2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
NGK SPARK PLUG CO., LTD. All Rights Reserved

Wide range oxygen sensor

Highvalue-added
Plugs

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

High
value-added
Sensors2030

22

3.New medium-term management plan (FY2021-FY2024)

Business Strategy : ICE Business
KGI
Operating profit
Ratio
Free Cash Flow

CAGR +１％
1.5 times (compared to FY2020)

Priority Issues
1. Increased market share in high value-added products

2. Control investment by improving productivity
Priority measures in ROIC tree

3. Improving capital efficiency by reducing inventory

NGK SPARK PLUG CO., LTD. All Rights Reserved

ICE Business Inventories
40% reduction（Compared to FY2020 ）23

3.New medium-term management plan (FY2021-FY2024)

Business Strategy : SPE BusinessSocial value/Business value

Communication
モビリティ

Aim to become a top supplier in the semiconductor
manufacturing equipment field by differentiating with
our own technology and meeting cutting-edge needs

Environmental awareness

External
Environment
Market
Needs

Memory market

Logic market

Increase in demand for semiconductors due to an increase in 5G smartphones,
work styles in “the New normal era”, and changes in lifestyleHigh-rise 3D NAND memory→ Fine and deep hole processing technology→ High power plasma

Our Position
Value
Provided
NGK SPARK PLUG CO., LTD. All Rights Reserved

Thinning by multi-patterning

Possession of ceramic sheet lamination technology(3rd among major manufacturers)
High plasma resistant material(High withstand voltage)• Uniformity of in-plane temperature• Particle reduction• Wide range of temperature(low temperature / high temperature)24

3.New medium-term management plan (FY2021-FY2024)

Business Strategy : SPE Business
Outlook for semiconductor manufacturing
equipment
market80

KGI[Billion US dollars]

Revenue

Expected
annual growth
of 5%

60
40

35 Billion yen

20
0
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

ROIC

Priority Issues

17％

35

Changes in our sales revenue[Unit: Billion yen]18

22

FY 2019

FY 2020

Expected annual
growth of 12%

FY 2024

Main indicators

Differentiation with unique technology thatmeets customer requirements
Building a production system that is resistant to market fluctuations
Inventory optimization, equipment utilization rate improvement, laborproductivity improvement, etc.

NGK SPARK PLUG CO., LTD. All Rights Reserved

Revenue CAGR

Above 12％
Improving labor productivity

Above 30％

（compared to FY2020）

25

3.New medium-term management plan (FY2021-FY2024)

Business Strategy : Medical(respiratory-related business)
Social value/Business value

MedicalAiming for business growth by expanding product groups andexpanding sales areas and channels in order to contribute toimproving the QOL of patients globally
Main oxygen concentrator lineup
Stationary typePortable typeGrowing need for oxygen therapy
Transportabletype

To the 200 billion yen
scale market in 2025

●ChinaLiquid oxygenHigh growth rate due to increased
number of COPD patients andincreased health use

Market growth and sales growth of our company
Europe

China

North
AmericaJapan●North America
Increasing number of COPD patientsand increasing demand for stationary/ portable devices

Oxygen Concentrator Market

3
2.5
2
1.5
1
0.5
0

Our revenue

Expected annual
growth of 11%

21/3期
NGK SPARK PLUG CO., LTD. All Rights Reserved

Expected annual
market growth of 6-8%

22/3期

23/3期

24/３期

25/3期

26

3.New medium-term management plan (FY2021-FY2024)

Business Strategy : Medical(respiratory-related business)
Environmental awareness
External Environment

Global increase in COPD patients, especially in China, where smoking
prevalence is highMarket Needs

Required products differ depending on the market (region)

Our Position

4th among major manufacturers

Value Provided

Not only oxygen therapy by strengthening the development systemwith CAIRE, but also new product development in the respiratory field

KGI
Revenue

30 Billion yen

Operating profit
Ratio

Priority Issues

18％

Main indicators

Development of new products for oxygen concentrators

Launch of new product

Diversification of sales channels and sales regions

Revenue from the Chinese market
CAGR

NGK SPARK PLUG CO., LTD. All Rights Reserved

FY2024

Above 25％

27

3.New medium-term management plan (FY2021-FY2024)

Business Strategy : New Business
Actively utilize M & A to acquire new markets for sustainable growth .
Aim to double the business value of new businesses * as of 2030
* Excluding SOFC

Decentralized Utilities

Smart HealthTiming of contribution to sales revenue
Shrimp farming
water quality system

Revenue target

Smart Mobility

40

Decentralized Utilities
Smart HealthOzonesterilization
deviceBillion yen

M&A
Decentralized Utilities
Smart Mobility

Connected
maintenanceservice

FY 2020
FY2021121FY
122FY
NGK SPARK PLUG CO., LTD. All Rights Reserved

In-housedevelopment

2030年時点での
事業価値

2,000億円
SOFC(For home / business / industrial use)

FY 2022123FY

FY 2023124FY

FY 2024

125FY

3.New medium-term management plan (FY2021-FY2024)

Business Strategy : New Business(SOFC)
Target area

Business development with a full lineup from commercial and industrial use (~ 50kW)
with a large market size to industrial use for large power sources and distributed powersources of 100kW or more⇒Common to both companies, CO2 reduction effect ofabout 30% on grid power

Priority Issues
For businessFor home

0.7~2kW2~10kW

20~100kW

For industria

100kW以上

Improvement of power generation
performance for industrial use

For Industrial

Development of nextgeneration products forhome and business use

Environmental awarenessFor home andbusiness use

External
Environment

Increased demand for renewable energy, expansion ofhydrogen business in each country

Market Needs• Lowering cost
• Smaller and lighter

Expanding demand for
distributed powersources and fuel cells

Our Position

Entering the market of 100kWor less, which has a relatively
low unit price of electricity

Advantage in life
cycle cost

Potential of ultra-high power generation
efficiency
High degree of freedom in design

Fuel cell life and highheat utilization

Value Provided••

NGK SPARK PLUG CO., LTD. All Rights Reserved

Reduction of production cost

Establishment of production
system for mass production29

3.New medium-term management plan (FY2021-FY2024)

Business Strategy : New Business(Other new development)

Social value

モビリティ

Providing solutions that can contribute to improving the QOL ofpeople around the world

Business value
Leverage our core assets to solve the potential needsof people around the world
Environmental awareness
External
Environment
Market Needs

Our Position

Value Provided••

New demand is increasing not only in developed countries but also around theworld due to population growth on a global scale and expansion of the middle classrends such as SDGs, CASE, pandemics, and aging•

Existence of new unmet needs (cheap medical access for all, safe andsecure food, clean air, water and energy, mobility for all)•Ceramic materials, piezoelectric / ultrasonic elements, sensing
technology, plasma global automobile-related customer base, global
sales network, etc.

• Solving the unmet needs of people around the world withsystems and solutions that utilize our assets

NGK SPARK PLUG CO., LTD. All Rights Reserved30

3.New medium-term management plan (FY2021-FY2024)

Business Strategy : New Business(Other new development)

Focus area
Focus on areas where sustainable and high growth can be expected in the next
5 to 20 years, and utilize our core assets

Smart Mobility

Decentralized Utilities••••

Land based Aquaculture
Air and water Purification
Energy management
Greenplant management

•
•
•
•

Mobility Service PlatformxEV System
Energy converter
Charging solutions

Smart Health•••Home health monitoring
Wound healing
Rehabilitation

Efforts to increase speed and probability
Thinking process

Organization

Resource
NGK SPARK PLUG CO., LTD. All Rights ReservedHuman-Centered Design Approach
Agile development using the Scrum method
Holacracy to foster a culture of open discussion without segregation



Flattening of the organization, transfer of authority, global crossfunctional teams
Revision of evaluation and incentive systems Resources







Appointment of external human resources with extensive experience
Advisory board composed of industry experts
Accelerate start-up investment using CVC as well as M&A
electronics, software technology, UI/UX know-how, big data analysis,
image analysis
31

3.New medium-term management plan (FY2021-FY2024)

Business Strategy : New Business(Other new development)

External investment strategy
Minority Investments
5+ minority and 1-2 M&A per year
Seed to series A for minority investments
Ticket size 10’s of million to 100’s of millions JPY
Only investments that can expand ongoing internal
projects:- additional markets, regions, market segments- technical, marketing, manufacturing capabilities- adjacent business areas
 Target markets with at least JPY 10 billion potential





M＆A

Partnership with PEGASUS TECHVENTURES
1. Fund Size: Up to $100 million
2. Deal flow to PMI M&A support

 Series A to running businesses
 Investment criteria：
Acquire technology, IP, and customer base that NTK does not have
Acquire human resources and teams with skills that NTK does not have
Acquire business portfolios around our business area periphery Budget: Around JPY 50 billion / 4 years
NGK SPARK PLUG CO., LTD. All Rights Reserved

32

3.New medium-term management plan (FY2021-FY2024)

Reducing long-term risk by strengthening ESG: E (Environment)

Establishment of Group Ecovision 2030
Select the most important issues from the viewpoint of impact on society and ourbusiness. Incorporate global environmental issues into our business strategy and aim
to deepen our efforts through information disclosure(In July 2020, announced support for the TCFD proposal)

4 important issues
IssuesResponding to Climate
ChangeThe milestone to be achieved in 2030
CO2 emissions 30% reduction compared to FY
2018

Expanding Environmentally
Friendly Products

Expand Nittoku Green Products

Conserving Water Resources

Water consumption intensity:
Keep below FY2018 level

Waste Management

NGK SPARK PLUG CO., LTD. All Rights ReservedAchieve over 95% effective utilization rate
Reduce at least 1% of waste intensity
compared to FY2018
Promote 3R (reduce, reuse, recycle)
activities
33

3.New medium-term management plan (FY2021-FY2024)

Reducing long-term risk by strengthening ESG: E (Environment)

Efforts to reduce CO2 emissions
Set long-term goals and milestones for 2030

CO2 emission forecast(10,000 tons)■NGK Spark Plug Group CO2 Emission Forecast*Emissions are flat at traditional activity levels

Ecovision 2030 start
Reduction of CO2 emission factor

Base year
2018

Primary unit
activity

Annual 2% reduction measures for companies,
group companies, and overseas bases*

Additional reduction items

2.5% annual reduction

3.3% annual reduction

From 2021 when the eco-vision
starts, we will work on a curveof -2.5% per year based on
SBT standards.

From the second half, we will
work on a curve of -3.3% peryear toward 30%.

End of 2024

10% reduction(Compared to FY 2020)

NGK SPARK PLUG CO., LTD. All Rights Reserved

End of 2027

20% reduction

Introducing on-site renewable energy

End of 2030

30% reduction(Compared to FY 2020) (Compared to FY 2020)(Reference value)
2051 Zero emissions34

3.New medium-term management plan (FY2021-FY2024)

Reducing long-term risk by strengthening ESG: S (Society)

Promotion of work style reform
Formulated "Work Style Reform Declaration" in 2021
We recommend "diversified work styles" in order to become a "Creating an organization comprised of passionate individuals working
together" of Nittoku BX.

■Promote comfortable remote work to employees→ Create an environment with a goal of a remote work rate of 70% or more.
■Prepare tools that respond to change and create new value→ To that end, we will invest in digital solutions.
And we want you to find the best for yourself from the many options and become an "autonomous humanresource who can continue to add value." NGK Spark Plug Group respects each person's values and aspirations
Promote productivity improvement and development of independent human resources

Promotion of health management(1) Efforts to improve health literacy ... Issuance of health communication, holding of health seminars(2) Measures against lifestyle-related diseases ... Implementation of health improvement program(3) Mental health measures ... Held a stress check group analysis result briefing session(4) Measures against second-hand smoke ... No smoking in the office (April 2023-)

NGK SPARK PLUG CO., LTD. All Rights Reserved

3.New medium-term management plan (FY2021-FY2024)

Reducing long-term risk by strengthening ESG: G (Governance)
Analysis and Evaluation of the Effectiveness of the Board of Directors(FY 2019) The Board of Directors’ composition is appropriate in terms of knowledge, capabilities, experience and diversity ofbackground necessary to perform its roles and responsibilities.
 The Board of Directors ensures that the management seeks sustainable enhancement of corporate value by taking
appropriate measures to address sustainability-related issues including social and environmental problems.
 The Board of Directors makes decisions on the basic policies regarding establishment of group-wide internal
control systems and provides appropriate supervision over the establishment and operation of such systems
 With respect to cross-shareholdings, the Board of Directors verifies the appropriateness of such shareholdings foreach individual stock based on comparison between capital cost and medium- to long-term risk and return.
2020 Priority Issues and Responses"Sophistication of deliberation on management strategy and business strategy" and "Enhancement of executive
training"✔ Implementation of continuous deliberation for formulation of medium-term management plan and long-term management plan
✔ Implementation of systematic orientation for newly appointed outside officers

Diversity of human resources

Increase the number of independent outside directors
Ensuring transparency and objectivity of decision-making by appointing outside directors who
have experience and expertise cultivated in an environment different from our company

June 2017
OutsideDirector
AuditorNGK SPARK PLUG CO., LTD. All Rights Reserved

June 2021 (plans)OutsideInternal3people2peopleJapanese
Male

Internal

7
people4people2people3people7people1peopleJapanesefemaleForeignerfemale36

FORWARD-LOOKING STATEMENTS
This presentation contains forward-looking statements concerning the future plans,
strategies, beliefs and performance of NGK Spark Plug Co., Ltd. and its subsidiaries.
These forward-looking statements are not historical facts. They are expectations, estimates,
forecasts and projections based on information currently available to the Company and are
subject to a number of risks, uncertainties and assumptions.
As such, actual results may differ materially from those projected.

NGK SPARK PLUG CO., LTD. All Rights Reserved37