CSR Report 2013
NGK SPARK PLUG Group CSR Report［Digest Version］

TOP MESSAGE
President and Chief Executive Ofﬁcer
NGK SPARK PLUG CO., LTD.
Shinichi Odo

September 2013

NITTOKU SHINKA-RON (The
Evolution of NGK SPARK PLUG):
From the 1st SHINKA (Delving) to
2nd SHINKA (Renovating) Phase
The NGK SPARK PLUG Group has set out its visionof what NGK SPARK PLUG should be in 2020 as a
distinguished manufacturing company, a highly
profitable company, a progressive company, and apersonnel "assets" company. To realize this vision,
we formulated a long-term management plan̶NIT TOKU SHINKA-RON (The Evolution of NGKSPARK PLUG), together with a roadmap, dividing theroad to 2020 into three 3-year phases: 1st SHINKA(Delving), 2nd SHINKA (Renovating), and 3rd
SHINKA (Evolving). The Group strives to steadily
progress through these three phases, toward thefinal goal of becoming a company that can offer"Real Value" to all our stakeholders. In March 2013,
the Group completed the 1st SHINKA (three years
devoted to delving) phase, during which we worked
to delve into existing businesses and seek new
businesses. In April 2013, we entered the next three
years of the 2nd SHINKA (Renovating) phase.
The 2nd SHINKA (Renovating) phase is intended asa preparatory period for determining our direction
toward regeneration. To establish a foundation for
the final three years of the 3rd SHINKA (Evolving)phase, we will utilize corporate resources to theutmost, and boldly challenge new industrial domains
and ﬁelds.

Inaugural Year of the 2nd SHINKA(Renovating) phase
I have always stated that my mission as president of1

the company is to "bring innovation to NGK SPARKPLUG CO., LTD." It is true that bringing about
innovation usually entails risks, but I believe that thegreatest risk lies in not seeking innovation out offear of changing. With "global," "speed" and "fair" as
keywords, I encourage all employees to share theawareness that "We should change ourselves" andto work in concer t to continue advancing thebusiness structural reform.
For our company, which has many overseas
operation sites, it is absolutely vital to establish andstrengthen our global management system.
However, I would also like to emphasize that it is ourhuman resources that support all of our corporate
activities. By mobilizing the capabilities of the
Corporate Administration Group, we aim to reformthe personnel system and enhance the management
information network that oversees the entire Group,in order to foster human resources with a global
perspective and to promote ﬂexible employment ofcapable local personnel. In addition, we have set up
a MONODUKURI Center within the Production
Engineering Group, with the aim of taking over shopﬂoor expertise and the spirit of manufacturing, andpassing these assets on to future generations.
In the Automotive Components Business, we areproud that our company's spark plugs and sensors
hold the world's largest market shares. At the sametime, however, we should all the more realize oursocial responsibility for supplying products in aconsistent manner. To continue growing as theworld's top manufacturer, it is important that wefurther strengthen our already strong Automotive
Components Business.

In response to the accelerating motorization in
emerging markets, we have taken strategies forfurther market expansion. In the Chinese market for
example, we released the NGK CX Lie Yan spark
plug, designed exclusively for China and speciﬁcally
geared to local needs.
With regard to the Communic ation Media
Components Business and the Technical Ceramics
Business, we have integrated the two businessgroups into a new Technical Ceramics Group. We will
promote business reorganization and optimal
resource deployment accordingly. In addition,
p ro du c tio n of o rganic IC p a ckages will b etransferred to overseas and domestic partners, aspart of our efforts to shift toward a new fabless＊business model, specializing only on productdevelopment and design.
As for new businesses, we will promote innovation infields relating to the environment, energy andelectric vehicles, while being attentive to social andcustomer needs . With the New Business
Advancement Group and the SOFC＊ Project playing
central roles, we will intensify our efforts to develop
new products.
To ensure that the three years of the 3rd SHINKA(Evolving) phase will be fruitful, we will change ourhuman resources, organizations and business forthe better.

Promotion of CSR＊ Management
The NGK SPARK PLUG Group reviews and improvescompliance＊ and risk management＊, in order toreinforce the basis for our operations. Moreover, theGroup declared that it would promote CSR initiatives
across the entire supply chain by applying its CSR＊
Procurement Guidelines to our suppliers.
As a company engaged in manufacturing, it isnatural that we should develop products that arefriendly to people and the Earth and that live up tosocial expectations. I believe that it is also
indispensable for us to pursue global environmental
protection in ever y aspect of manufacturing
activities throughout the entire value chain, coveringfrom raw material procurement to product delivery.
To achieve the targets set under the NGK SPARKPLUG Group Eco Vision 2015, we are earnestlycommitted not only to reductions in CO2 emissions
and w ater co nsu mptio n , bu t al s o to w as tetreatment/disposal and management of chemicalmaterials.
It is a matter of course that, to enhance our own
value as a company, we should contribute to society
through our business operations by manufacturing
products that satisfy society's needs and help
resolve social challenges. Additionally, as acorporate citizen I am sure that creating jobs is also
par t of our so cial resp onsibilit y and so cial
contribution. In terms of manufacturing, Japan isnever the best environment. But in order for us tosurvive as a global company over the long term, thekey is how we can preserve "manufacturing that canbe done only in Japan." From such a perspective, wewill improve the quality of our labor force byproducing even higher value-added products inJapan, thereby contributing to the creation of highquality employment.
We are also vigorous in promoting the diversity＊ of
our organization. If looking at Japan's workforce,
one can be convinced that there will certainly be no
future for Japan without empowerment of female
workers. We will therefore place emphasis on
diversity initiatives. To begin with, we will promoteempowerment of female workers throughout ourorganization, but this is just one of many catalysts
needed to reform our corporate culture. For further
growth of our company, I wish to proactively employ
motivated personnel, regardless of gender,
nationality, age, and whether or not they have adisability.
Recognizing the importance of communication withstakeholders, we will properly grasp the trends ofthe world, and encourage the CSR and Expert
Committees to hold lively discussions to identify
challenges to address, so that all employees work
together to contribute to creating a sustainable
society.
We hereby release CSR Report 2013, which compiles
our activities during fiscal 2012. We would verymuch appreciate your unreserved comments andopinions.

Overview of Long-Term Management Plan; NITTOKU SHINKA-RON (The Evolution of NGK SPARK PLUG)

NGK
SPARK
PLUG

NGK SPARK PLUG
in 10 years
1st SHINKA
Delving

2nd SHINKA
Renovating

3rd SHINKA
Evolving● A distinguishedmanufacturing company● A highly profitablecompany● A progressive company● A personnel"assets" company

2Corporate Philosophy

Three elements constitute our corporate philosophy.

Corporate
Philosophy

2Management
Policy3
1

ActionGuideline

Commitment

Management Policy

Commitment

Action Guideline

We offer a working environment
in which each one of us isencouraged to make full use of
his or her personality andcapability. With all our power
we are dedicated to pursue
management based on trustand conﬁdence.

With full use of the mostsuitable technology and ouraccumulated experience, we
continue striving to offer
new values to the people of
the world.

Ever onward ! Always
mindful of what is the best
course, we swiftly put it into
action.

Respect for Personality andCapability
For sound development ofbusiness we create a corporate
climate for our employees toutilize their personality andcapabilities at their optimum
level. An excellent environment
creates the original technology
which is the most important, andfosters the formation of a richpersonality.

Contribution to Society
We believe it our mission tooffer people new values withthe excellence of quality
required for the time.

Positive AdvanceNot content with things as
they are, we always make an
attempt to achieve new
objectives. We are convincedthat a continual and positive
stance constitutes our driving
force.

Concentration of All Our PowerThe activities of individuals areorganized efﬁciently to carry out
strategic management.
Management based on Trustand Conﬁdence
Our company has been supported
by a large number of people
connected with us. All the trustand conﬁdence we have enjoyedis our great asset. We read thetrend of the times to keep one
step ahead. We intensify further
the trust and conﬁdence in us byhonest management.

3

Activities in the Global
Perspective
We aim to become a company
loved and popular amongpeople all over the world
through our global operations.
Technology and Customer
Orientation
We aim to be a leading
company that continues todevelop and offer original andcreative products at the righttime. We challenge new ﬁelds
using our experience gainedin the ceramic business.

For the Best
Setting our mind at all times
to what is the best, we try toadvance and improveourselves.
Speed in Action
We keep up with changes withthe right judgment andspeedy action.

SloganWith established trust and conﬁdence inside andoutside the Corporation, we aim to contribute to thepeoples of the world by creating and putting at theirdisposal new values for the future.

Primary Products
Automotive Components Group

Spark
Plug

Iridium
Plug

Glow Plug

Zirconia ExhaustGas
Oxygen Sensor

Zirconia Exhaust Gas Oxygen
Sensor for Motorcycle

Wide Range
Temperature Sensor

Knock Sensor

Technical Ceramics Group

Crystal Device andSAW Filter Package

Organic IC
Package

Substrate for
Wafer Tester

Camera Module
Package

LED Package

High Frequency
Package

Ceramic Inserts

SS Tools

Throw-away
Drill

Milling Cutter

Bio Ceramics

Oxygen Concentrator

Electro-Static
Chuck

Ceramic Tube
for VCB

DielectricResonator

Ceramic Heater

UltrasonicTransducer

Ball Bearing

CONTENTSTOP MESSAGE ......................................................................... 1■ Corporate Philosophy ................................................... 3［Feature01］Contributing to Motor Sports............ 5［Feature02］Development of Lead-free Piezoelectric Ceramics ... 7［Feature03］Outstanding Products Working behind the Scene ... 9

NGK SPARK PLUG Group CSR Report 2013

Editorial Policy
The digest version of our CSR Report 2013 hasbeen edited to give our various stakeholders
an understanding of the CSR activities
implemented by the NGK SPARK PLUG Group.

■ CSR of NGK SPARK PLUG Group ....................... 12

Website Version■ With Our Customers .................................................... 13

Our daily CSR activities■ With Our Shareholders and Investors ............ 15■ With Our Suppliers ....................................................... 16

Digest Version
Highlights of ﬁscal 2012

■ With Our Employees.................................................... 17■ Compliance ........................................................................ 27

The Digest Version reports primarily thehighlights of our CSR activities.
For more detailed information, please visit
the following website:■ Risk Management ......................................................... 28

http://www.ngkntk.co.jp/english/csr/

Corporate Proﬁle and Glossary ................................ 29

Explanations of terms marked with an asterisk (＊) are given on page 30.

■ With Local Communities and International Society ...... 21■ For Environmental Protection .............................. 23

4

Feature

01 Contributing to Motor Sports
NGK spark plugs, the core products of NGK SPARK PLUG, are important functional engine
components which determine a large share of engine performance. For years, we have supplied
high-quality spark plugs to the ﬁeld of motor sports. In fulﬁlling our responsibilities as a leading
spark plug brand, NGK SPARK PLUG will continue to contributed to the reliability and thedevelopment of motor sports and automobile society.

Technology Development of
Spark Plugs for F1
The aim of Formula One (F1), the highest
class of single-seater auto racing in theworld, is not simply to compete in engine
performance or machine design. The race is afair competition involving the overall ability ofthe machine, driver, and team under strict
technical regulations with safety andenvironmental issues kept in mind. Various
devices and technological innovations
developed from F1 have later made great
contributions to the development of
automotive technologies
and use of the automobile
in society.
Leading-edge technologies
and ideas are used in spark
plugs for F1 engine to boost
engine performance. For
example, to make theSpark Racing engine head design moreplug spark plug f l e x i b l e , i t h a s b e e nnecessary to reduce the thread size on the
one hand, and to offer resistance to heat andvibration to ensure durability in the
demanding racing environment, which ischaracterized by continuous application of ahigh load. NGK SPARK PLUG is constantly
exploring the best way to meet that challenge
and setting new targets for itself. This canclearly be seen in the fact that since thecompany first supplied spark plugs for F1
engines in 1964, many teams have continued
using NGK spark plugs.
Development of F1 machines and engine
technologies continues throughout theseason. At NGK SPARK PLUG, engineers at
our Technical Center in Europe and engineers
in Japan collaborate on a daily basis toprovide technical support aimed at meeting5

the precise requirements for our spark plugs.
As a result of our efforts, the F1 machine that
won the F1 Malaysian Grand Prix held inMarch this year marked the 300th win for a
F1 machine equipped with NGK racing spark
plugs. NGK spark plugs provide outstanding
performance in various categories that
include WRC, Super GT and other automobile
races, as well as MotoGP, the Superbike WorldChampionship and other motorcycle races,and snowmobiles.

Tomoaki Ueda
Spark PlugEngineering Dept.,
Spark Plug Div.
I am a racing spark plug planner,
developer, and designer who responds torequests from engine manufacturers.
Recent racing engines need to meet thechallenge of how to ignite limited fueleffectively and improve both power andfuel efﬁciency. The challenge is no longer
simply to deliver power. Techniques that I
have acquired through leading-edge
development in the area of motor sports
will be incorporated into our products.

Satoru Nakajima
General Director,
NAKAJIMA RACING
I am currently involved in racing as theGeneral Director of Nakajima Racing. Since I
was a racing driver, NGK spark plugs havebeen a must for my teams. I feel very
conﬁdent whenever I see NGK's red logo atIsle of Man TT (Tourist Trophy) Racerace venues. I hope that you will continue

The NGK Spark Plug brand became known worldwide
since teams used our spark plugs in the Isle of Man
TT, a prestigious motorcycle race in the UK.

to supply excellent products.

EventsNGK SPARK PLUG supports motor sport venues
and exhibitions and always has a booth atthese events. At our booth, our products areon show, and visitors can experience replacing
spark plugs and enjoy games by our mascot,
the Spark Girls. These are only a fraction of
the amusements that we present for spark
plug users and visitors so that they may
become acquainted with motor sports andexpand their interest in and knowledge of
replacement parts for automobiles.
The company sponsors the NGK Cup (Suzuka
Sunday Road Race Grand Championship), in
which a wealth of talent from beginners toexperienced riders hone their skills to qualify
for Japan's most prestigious race, the All
Japan Road Race Championship. As such, theNGK Cup serves as a steppingstone for riders
who are aiming to compete in the All Japan
Road Race Championship and go on tointernational races.
These events and support activities allow
NGK SPARK PLUG to contribute to thedevelopment and promotion of motor sports.

Hiroshi Nakao
Aftermarket Sales& Marketing Dept.,
Sales & Marketing Div.
I visit many auto race venues including
Japanese national racing championships
and provide services to our spark plug
users. To improve the brand image of
NGK spark plugs in the field, I work
almost every weekend at race sites,
including the Suzuka 8 Hours Endurance
Road Race in summer, the Formula One(F1) Japan Grand Prix and MotoGP in
autumn, and snowmobile races in winter.

Hands-on experience of spark plug replacement

Visitors to the our event booth at theSuzuka 8 Hours Endurance Road Race
●I took a close look at electric sparks
being produced by a spark plug. It was asight to see. (Male) ●It turned out that
replacing a spark plug required more force
than I expected. (Male) ●I was happy thatmy kids enjoyed the event a lot. (Female)6

Feature

02

Development of Lead-free
Piezoelectric Ceramics

Piezoelectric ceramics are widely used in home appliances everyday. However, the problem ofthat the most of piezoelectric ceramics contains lead still remains. Consequently, the challenge
for us has been to develop a lead-free piezoelectric ceramic material to prevent lead fromleaching from discarded equipment into the environment. NGK SPARK PLUG has developed leadfree piezoelectric ceramics with characteristics that are comparable to ceramics contained lead.

Piezoelectric ceramics
Piezoelectric ceramics generate a voltage

piezoelectric ceramics are capable ofunder an externally-applied force.

converting electrical energy to mechanicalenergy. By making full use of thisConversely, they elongate or contract
when a voltage is applied. When an AC
voltage is applied, they repeat elongationand contraction or vibrate and evengenerate ultrasound. In other words,

capability, piezoelectric ceramics are used
in a wide range of applications from home
appliances to industrial equipment that
ordinary people do not handle.

Familiar examples of applications of piezoelectric ceramics

7

Printer ink head
Ink chambers made ofpiezoelectric ceramics
change shape to eject ink.

Camera lens autofocus motor
The camera focuses
automatically. The lens ismarked "USM."

Speaker
Without sound emission
holes, you can hear sounds
when you put the cellphone's
display screen to your ear.

Medical ultrasonography
Diagnostic sonography is used tocheck the sex and growth of fetuses
and diagnose abdominal diseases.

Ultrasonic catheter
Uses ultrasound to view the
inner walls of blood vessels
despite the presence of blood.

Spectacles cleaner
Uses ultrasound to clean
spectacles.

Knock sensor
Detects knocking.

Rear sensor
Alerts when the car
approaches an obstacle.

Vibration-powered generator
Converts the power in yoursteps into electricity.

Contained lead in piezoelectric ceramics is the problem.
Lead zirconate titanate (PZT) is commonlyused as a piezoelectric ceramics. As its
name suggests, PZT contains lead. Since
lead is poisonous, concern remains over
how to dispose of products including PZT.
If products including PZT are not properly
treated, contained lead may leach fromsuch products and contaminate soil andrivers and eventually affect human health.
Regulations on the use of lead are
therefore being tightened in Europe andother regions.
Nonetheless, PZT-based piezoelectric

ceramics are still in use since they are notregulated under the RoHS directive inEurope at present. Because it istechnically difficult to substituteelectronic ceramics including lead such as
PZT.
Although there are currently norestrictions on electronic ceramics
contained lead, regulations on the use oflead are expected to be tightened.
Consequently, it is important to develop
lead-free piezoelectric ceramics that havecharacteristics comparable to PZT.

Development of lead-free piezoelectric materials
Sodium potassium niobate (KNN) is apromising substitute material for PZT.
However, one significant challenge ofdeveloping KNN material has been acquiringstability of the material in addition to
improvements to the characteristics because
crystal grains of KNN are dice-like particles
and it tends to have voids between the grains.
To address this challenge, NGK SPARK PLUG

material and tested it. The new material has
proven to have performance comparable to
PZT and that suggest that it should bepossible to put into practical use.
We will continue ourresearch and makeefforts to commercialize
lead-free piezoelectric
ceramics.
Newly-developed leadfree piezoelectricmaterial

has conducted research for several years
and successfully developed a lead-freepiezoelectric material by mixing a phaseprimarily composed of KNN and another phase(named "NTK phase"). Sintered ceramic of thismaterial has very dense structure andcharacteristics close to PZT. We made ourknock sensor using this newly-developed

Kazushige Obayashi
Engineering R&D GroupKNN lead-free piezoelectricmaterial was discovered morethan 50 years ago. Nearly 15 years have passed
since we took on the challenge of developing thematerial. Researchers worldwide have increased their
expectations and conducted research. However,Lead-freepiezoelectric element
and knock sensor

commercialization is still on the way. The length oftime demonstrates how difficult the material is toand how attractive it is. Nonetheless, the result
which commercialization of the material attains has
been obtained in the last few years at last. This is a
result of the efforts and enthusiasm of our researchstaff. I am genuinely grateful to the recent help
received from many people, and we are now
determined to launch the lead-free piezoelectricmaterial on the global market.

8Feature

03

Outstanding ProductsWorking behind the SceneNGK SPARK PLUG's products and technologies are used in a wide range of applications fromeveryday items essential for people's lives including automobiles, motorcycles, mobile phones,and LED lighting, to infrastructure components such as wind power generators, railroads, aircraft,and communication networks. As a manufacturer committed to creating value for the future, wewill continue to contribute our advanced products and technologies broadly to society.

Ceramic Ball Bearing for wind
power generators
Wind power generation is receiving a lot of
attention as a clean energy. NGK SPARKPLUG has developed large ceramic ballbearing made from silicon nitride for use inwind power generators. Features include:① Lightweight design to reduce energy
losses, ② Use of insulating ceramics to
avoid galvanic corrosion and ensure long
life, and ③ Usability under lean lubrication
conditions. Bearing balls 50 mm indiameter allow smooth rotation in large
wind power generators.

Medical Oxygen Concentrator
Sansomate-3G
Sansomate is a medical device thatprovides higher oxygen concentrations topatients with chronic respiratory disorders.
Launched in the summer of 2012, the 3G
offers a universal design that ensures safe
and correct use. Improvements
incorporated in the 3G include a larger
control panel, icons used to indicate
alarms, and flow rate selection buttons.
This oxygen concentrator is 8% smaller involume and 24% lighter than ourconventional product due to a reduction in
the number of parts and material changes.

9Spark plug developed exclusively
for the Chinese market
The NGK CX Lie Yan spark plug is our ﬁrst spark plugwith the Chinese characters "烈焔" on the insulator. It
is specifically designed for the Chinese market. Itfeatures not only an epoch-making aesthetic design;it also signiﬁcantly improves combustion efﬁciency
compared with general spark plugs because of thevery thin center electrode made of platinum alloy.
NGK CX Lie Yan is a high-performance spark plug
which offers high ignition performance and provides
excellent fuel economy, acceleration, engine
startability and anti-fouling performance.

Ceramic glow plugs
The glow plug is a component that helps
a diesel engine to start. We produce
high-performance ceramic glow plugs aswell as general metal glow plugs. The
heater, which is made of ceramic, canreach high temperatures and helps
reduce hazardous substances in theexhaust gases. Since the heating time islong in the latest clean diesel cars,
ceramic glow plugs are in the limelightbecause of their excellent durability.

Latest NHTC 2reaches 1000ºC
within one second.

Automotive oxygen sensors
Automotive oxygen sensors mounted upstream and＊downstream of the three-way catalyst are core
parts of the engine air-fuel ratio control system,
sending electrical signals to the ECU corresponding
to the oxygen concentration of the exhaust gas. In
addition to ensuring compliance with strict exhaustgas regulations in Japan, America, and Europe, weare developing sensors with improved durability,
heat resistance, small size, light and highly
vibration-resistant for emerging nations where
regulations will be strengthened in the future.
Through these efforts, NGK SPARK PLUG iscontributing to cleaner exhaust gases.

Wide range oxygen sensor
Zirconia oxygen sensor

Injector
j
Air

Fuel

Zirconia oxygen sensor
Catalyst

Exhaust gas

Engine10Feature

03 Outstanding Products that Do Their Work Out of Sight

Ceramic LED packages
Having become synonymous with energy
saving, LED technology has become
essential in our everyday lives. LED
packages using our multilayer ceramics
technology exploits the advantage of its
long service life. We receive many inquiries
from our customers interested in using
ceramic LED packages for industrial or
infrastructure applications. NGK/NTK willbrighten your future due to our many yearsof experience in ceramics technology.

Back turning tool "Back Duo"
Problems associated with back turning
performed by Swiss-type lathes include chips
tampering with the workpiece and the needfor finishing to achieve a good machined
surface. Back Duo with our proprietary 3D
chipbreaker solves these problems. Moreover,it comes with improvements to every feature
expected of a lathe tool, including chip
handling performance, machined surface
finish, accuracy, cycle time, tool life, andease of tip replacement to help our users
improve their productivity.
In recognition of this achievement, the Japan
Cemented Carbide Tool Manufacturers'
Association has given its technical achievement
award to NGK SPARK PLUG CO., LTD.

11

CSR of NGK SPARK PLUG Group

Our CSR
We view CSR not just as a responsibility
but as an opportunity to be accountablethrough a review of the NGK SPARK PLUG
Group's economic, environmental andsocial activities from a global perspective,
to enhance corporate value, and tocontribute to the sustainable developmentof society in accordance with our
Corporate Philosophy.
Our CSR Policy, which provides our Group's
action guidelines, was established in April
2011. It comprises 10 policies, including
our Compliance Policy. We intend toreview and promote CSR from amultifaceted approach in line with thisCSR Policy.

■ Philosophy and Policy Organization
Enhancement of Corporate Value

Corporate
Philosophy
Corporate Code of
Conduct

CSR Policy
・Risk Management Policy
・Compliance Policy
・Information Security Policy
・Corporate Quality Policy
・Information
Disclosure policy

・Procurement Policy
・Human Resource Policy
・Occupational Safety
and Health Policy・Social Contribution Policy
・Environmental Policy

Our stakeholders
The NGK SPARK PLUG Group is related to and supported byvarious stakeholders, including customers, shareholders and investors.

Our businessactivities areenvironmentallyfriendly.

P.23
NGK SPARK PLUG
is a member of thelocal community
and internationalsociety.

P.21
We are working for
the NGK SPARKPLUG Group.

P.17

We provide
customers with
our products andservices.

Customers

Shareholders
andinventors

Environment

NGK SPARK PLUG
NG
UG
Group
Local
communities andinternationalsociety

P.13
We operate ourbusiness based on
funds provided byour shareholders
and investors.

P.15
Suppliers

Employees

W purchase raw
Wematerials, parts andservices from our
suppliers.

P.16
12

NGK SPARKPPLUG Group CSR Report 2013

With Our Customers

Efforts to create a company that can continue providing better products and services

HighLight

We constantly promote quality
improvements that form the foundationsof TQM (total quality management).
We aim to create value forcustomers and continue to maintainand improve them based on ourbasic quality policies. To this end,
we encourage all our employees tostick to our quality-oriented
products and services throughdevelopment of personnel, productmanufacturing and systems.
To mark a new three-year round of
the sixth medium-term management
plan, a lecture and panel discussion
was held during the Quality Monthin ﬁscal 2012 on the theme of NGKSPARK PLUG's quality-oriented
management and evolution.

Toshiki Sawada
Quality ControlGroup

The Quality Control Group cooperates with other divisionsin promoting quality improvement activities in various areas,
thereby pursuing quality-oriented management to improve
the quality of the company. Our strong sense of mission asa quality-focusing manufacturer means that we continue toprovide safe and secure products to our customers.

Quality education

Mariko Muramatsu［ Quality Control Group ］
Building quality level foundations
for the NGK SPARK PLUG Group !

13

We provide a wide range of QC education and training programs on quality
control, management techniques, QC circle activities, quality management
systems, measurement management, etc. We also offer practical guidanceand support to our employees to ensure that the knowledge gained throughthese programs is utilized in the workplace. As part of our activities toenhance quality awareness, increase the motivation of our employees andpromote quality education, we hold events including quality-related
exhibitions and lectures on quality. We also provide practical guidance toour suppliers to promote quality
education and solve problems, aiming toencourage them to deliver higher quality
parts and materials by implementing
continuous quality improvements.

NQC activities (small-group activities)
We make effort to solve problems and issues which we are facing indaily work. As a means of it, we promote "NQC Activities," whichrefer to QC circle activities＊, throughout the company with the aimof personnel training and improving workplace skills.
During the "Quality Month" which is in every November, the company
presentation meeting for accomplishment done through NQC activities are held,
and the President's Award goes to the circle in recognition of best practices. At
the company improvement practice presentation and award ceremony held on
every June, commendations are given to small groups implementing excellent
NQC activities in daily operations throughout the year and also to groups
achieving outstanding improvement practices outside of Japan.
We strive to activate NQC activities and improve quality by
reinforcing the promotion organization, creating activation teams of
QC circle instructors, and encouraging employees to participate inpresentation meetings and training programs outside the company.
Kazuhiko Noro
Quality Assurance Dept.,
Semiconductor Division

Masae Takahashi［ Quality Control Group ］
I will provide support for NQC
activities that are designed topersonnel training throughhands-on training.

I belong to the secretariat of the Division Committee.
With the basic principles of the QC circle activities,"For Yourself, For Your Colleagues and For Your
company" constantly in mind, I started focusing on
face-to-face activities in meetings three years ago.
When individual small groups engage in QC circle
activities, I give them direct guidance and assistanceso that communication in the workplace changes forthe better.
In fiscal 2013, I will join the NQC activity activationteam as a QC circle instructor and become involved inbuilding a new system and framework aimed atenhancing quality of NQC activities.

For safe and secure use
We use opportunities provided by various exhibitions and autoraces to directly communicate with customers at the venue by
displaying our products and technologies. In doing so, we areable to keep abreast of the ever-changing needs of ourcustomers. In addition to the opinions of customers gained
through communication, inquires and complaints about our
products and services provide us with valuable information.
Our sales division acts as a liaison with customers. The quality
assurance division then works together with the technicaldivision to respond quickly and take action on the inquiries
and complaints, thereby improving our products and services.
We make it a rule that any product defect we have detectedthat could cause harm to customers is immediately announced
to the public via our websites, and through the media. We
simultaneously implement countermeasures against thedefects to protect all our users.

NEPCON JAPAN 2013

FCEXPO2013

Charge-free product replacement and safety measures〈 For details, please refer to our websites. 〉（Japanese only）● Replacing spark plugs for races free of charge● Implementing safety measures free of charge with indoor temperature/humidity sensors and indoor humidity sensors

14With Our Shareholders and Investors

NGK SPARKPPLUG Group CSR Report 2013

We always try to be transparent in our business operations, with the aim of remaining an enterprise that receives a lot of great support.

HighLight

We improve the quality of company information
session for individual investors to ensure thatthey understand our company clearly.
The Public Relations Office wasestablished in April 2013. As part of
our IR＊ activities, it provides ourshareholders and investors with IR
information including our businessenvironment, ﬁnancial conditions andfuture growth strategies.
We will focus on improving the qualityof company information session for
individual investors. In addition tolarge cities including Tokyo, Osakaand Nagoya, we will hold company
information session throughout Japanto give more opportunities tocommunicate directly with ourinvestors so that they can gain aclear understanding of our company.

Riki Matsuno
Public Relations
Ofﬁce

Our company is unfamiliar to end-customers. We will
increase the number of company information session andprovide more opportunities for our investors to find out
more about NGK SPARK PLUG. We intend to make company
information session memorable for our stakeholders andinvestors to create more fans of NGK SPARK PLUG.

Policy of dividends
Returning proﬁts to our shareholders is one of the priorities on our
agenda, and we aim to maintain consistent and stable dividend
payments. At the same time, returning proﬁts in line with revenues isalso important. Currently, we are trying to achieve a consolidated
dividend payout ratio of 20% or more, and intend to continue making
interim and year-end dividend payments. Our dividend payment planis based on comprehensive financial strategies that take into
consideration the following budgets: R&D expenses (as needed for
future growth), capital investment (to expand or streamline thebusiness) and internal reserves (for future investments).
As a result of this policy, the dividend per share during ﬁscal 2012 was 22 yen.

15

NGK SPARKPPLUG Group CSR Report 2013

With Our Suppliers

Aiming at reliable partnership and mutual prosperity

HighLight

We released our CSR procurement
guidelines.
We compiled guidelines to
explain CSR procurement andreleased them on our websites
and in our corporate policy
conference.
The guidelines call for ideal
forms of human rights, labor, theenvironment, fair transaction,
ethics, social contribution andothers, and position CSR
activities as one of importantfactors in business transactions.
We actively strengthen trustwith our suppliers through CSR
procurement and makecontributions to the sustainablegrowth of society.

Teppei Okawa
Member of the Board
Corporate Ofﬁcer
Procurement Group

The Procurement Group is responsible for optimizing our global
procurement activities. When increasing procurement fromoverseas suppliers that operate under different customs,
cultures and laws from those in Japan, it is important to clarify
our CSR policy. We strive to create a mutually beneﬁcial supply
chain system through fair and transparent transactions.

Expanding our green supplier system
We promote green procurement activities under our Eco Vision 2015
plan based on our basic philosophy "Procuring eco-friendly products
from eco-friendly suppliers." As part of these efforts, since 2007 wehave been giving green supplier accreditation to suppliers that meetthe system and material standards. After running this system inside
the company, it was expanded to the whole of the NGK SPARKPLUG Group in the year 2013. Suppliers of raw materials, parts,
products, packaging materials and subsidiary materials areinspected and 306 suppliers have been accredited to date.

Toshinao Iwata［ Procurement Group ］
Our procurement activities takeenvironmental conservation into
account as well as quality,
technology, price and delivery date.

16

PARK PLUG Group CSR Report 2013
P

With Our Employees

Respecting the diversity and individuality of our employees and cultivating abundant personnel "assets"

HighLight

We launched the MONODUKURI Center topass on the knowledge and skills
required for manufacturers.
The NGK SPARK PLUG Group is amanufacturer and the maintenanceand improvement of our manufacturing
capabilities are indispensable tocontinue producing high-quality
products. However, concerns are
growing about the decrease in the
manufacturing capabilities of Japanesecompanies as a whole. Japan's
demography has changed since mostbaby boomers have reached retirement
age and the younger generation islosing interest in manufacturing as
computers and game consoles prevail.
Against this backdrop, we launched our
MONODUKURI Center and built the
MONODUKURI Education & Training
Center to give education and training toour employees so that they can acquire
the knowledge and skills required for
manufacturing at the appropriate time.
We have improved our in-house
education system for manufacturing tostrengthen the foundations of thisrenowned manufacturing company.

Hidemitsu Suzuki

Manufacturing capabilities
form the foundations of
our company and the skills thus acquired haveto be preserved and passed on for many years.
With this belief, in April 2013, theMONODUKURI Education & Training Center
was built as part of the MONODUKURI Center.
We clarify the knowledge and skills that ouremployees need to acquire and provide them

17

Corporate Ofﬁcer
MONODUKURI Centerwith the necessary education and training at
the appropriate time, thereby solidifying"Safety, Quality and Skills" as the foundationsof manufacturing. At the same time, we ensurethat our employees understand NGK SPARK
PLUG's rules to cultivating human resources
who are disciplined and follow social norms.
We also aim to nurture employees with avibrant and ﬂexible approach to their work.

Concept of the MONODUKURI
Education & Training CenterWith the belief that "excellent MONODUKURI is based on steady humanresource development", we determine the basic knowledge and skills
that are needed by employees of a manufacturer, and have implementeda system to provide employees with the necessary education andtraining at the appropriate time. The education and training they receiveat this center allows us to cultivate human resources who follow social
norms. To this end, the MONODUKURI Education & Training Center isfounded on three pillars: safety, quality and skills (knowledge), as theseform the foundations of all the disciplines at the center.
The education and training curricula (levels 0 through 3) are set
according to the skill and knowledge of the employees. At present,
mainly level-0 education programs are being carried out and will
gradually be upgraded. We plan to introduce our training andeducation programs to our overseas group companies and holdworkshops on using IT equipment.

Kazuo Mizutani［ MONODUKURI Center ］
We encourage thedevelopment of people
who can think and act on
their own based on soundknowledge.

Level-0 workshop

Mai Tamada
Quality Assurance Dept.,
Spark Plug Division
I was amazed at the performance ofthe machines and learned to be carefulwhen using them. I also learnt theimportance of accident prevention.

A level-0 workshop was held for new
employees who graduated from high schoolas the first program of MONODUKURI
Education & Training Center.
The level-0 workshop is aimed at"knowing, understanding andmanaging." The new employees studied 15 subjects for three
weeks, including seven hands-on subjects (hands-on safety training
with accident simulation, environmental activities, and handlingmeasuring instruments) and eight practice and lecture-based
subjects. They learned how to use tools for a range of processes,
used simulation kits and had other hands-on experience. The course
was designed to maintain the interest of the new employees by
incorporating plant tours, exercises and group discussions into thepractice and lecture-based subjects.

Developing personnel "assets"
Our education and training activities consist mainly of OJT (on-thejob training) opportunities, through which employees acquire skills
and knowledge in their normal working situation. We also have OFFJT (off-the-job training) programs, providing employees withlearning opportunities outside their own workplaces. We have a wide
range of OFF-JT programs that include quality education,
manufacturing education, training by organizational level, training
by global human resources and career improvement support. During
fiscal 2012, 4,581 employees participated in these OFF-JT
programs.
The company also runs My Career, a tool to support employees inbuilding a career. Employees input their job history, skills,
knowledge, objectives, positions they want to get and any opinions
every six months. This helps them confirm what they can do andwhat they want to do in building their career.

Capacity Building Group,
Human Resources Dept.
Acknowledging that
employees are the mostimportant management
resources, we aim tocultivate personnel"assets."

18

Offering a secure and safe working environment
In order for individual employees to make fulluse of their capabilities, it is essential that weoffer a secure and safe working environment.
To that end, it is vital to identify and control
potential risks (hazards) in the workplace.
In the risk assessments＊ that havetraditionally be conducted in our workplace,hazards were often overlooked, leading toaccidents. Against this background, we haveestablished and launched a new risk
assessment system to identify and control
every potential risk under the slogan of"comprehensive risk (hazard) detection."
In fiscal 2011, a model production line was
set up at the Production Department of
Komaki Plant in the Spark Plug Division toinvestigate the comprehensive risk detection
techniques and tools for the new risk
assessment system. The results were sharedthroughout the division in ﬁscal 2012. Model
production lines have also been built in otherplants and divisions, where the new risk
assessment system has been implemented.

We intend to deploy the system throughout
the entire NGK group, including back-office
departments and afﬁliates.
Reducing and controlling risks is an absolute
requirement to realize a secure and safe
working environment. However, it is also
necessary to develop human resources who
can deal with residual hazards. From thisviewpoint, we evaluate employees regarding
equipment and operation knowledge, risk
prediction abilities and other necessary skills
and train them systematically to improve theirabilities and skills if necessary.

Mitsuru Kuwahata
Production Dept., Komaki
Plant, Spark Plug Div.
Taking an objective
view of identifying
hazards is important in
the new risk assessment
system.

Promoting employees' good health
We have a slogan -- "Bring your best physicaland mental condition to your workplace andmaintain it until leaving." In accordance with
our Occupational Safety and Health Policy, wetake an interest in the health of our employees.
Self-discipline is the key to keeping in goodcondition. Therefore we put the emphasis on
our publicity activities including in-housenewsletters to raise employees' consciousnessof their health and improve their attitude
toward maintaining their own health.
At our periodical health checkups, employees
undergo general and special examinations.
＊
Our industrial physicians , clinic doctors andindustrial health management staff follow up
employees who have abnormal results in theirhealth checkup, and send them on to
specialized medical institutions whennecessary. These efforts allow employees todetect any disease at an early stage andmake a speedy recovery.
In the mental health ﬁeld, "line care" (in which
managers monitor the mental health of theirstaff, improve the working environment and19

give advice and consultation when needed)and "self-care" (monitoring one's own stresslevel and coping with it) are important. We
give managers line care training and provide
employees with a Self-Care Handbook andencourage them to use the check sheet in
the handbook to increase their awareness of
the importance of "self-care." To support ouremployees in maintaining their mental health,
we have also established an externallyoperated hotline which employees who areworried about their mental state can call to
consult with a specialist.

Shiko Abe (Left)
Masahiro Teramura (Right)［ Human Resources Dept. ］
Recognizing theimportance of directcommunication in theworkplace, we continue
sharing what we ﬁndimportant for health.

Diversity initiative
We promote diversity in our organization as we believethat diversity and inclusion are essential forcompanies to attain sound growth and ensurehappiness for all employees. Here, diversity means anemployee-friendly workplace that accepts different
personnel "assets" (one in which all people regardlessof their gender, age, disability or nationality, enjoy
their work) and includes diverse values and ideas thatmove the company forward. As Japanese society isfacing issues such as a shrinking working populationand the empowerment of women, we encourage
highly-motivated female workers to play importantroles in the workplace.
The number of female managers is increasing year by
year, and the ratio of women to the total number of
employees on the managerial track exceeds 10%. As
of March 2013, there are 26 female workers inmanagerial posts (supervisor or higher position) andfive female workers on overseas assignments. This
demonstrates that female workers in our company arestarting to play a more important role in the world.
In fiscal 2012, we launched a full-scale diversity
initiative. We invited external lecturers to give talks ondiversity for women employees and their managers,
and organized seminars for female leaders (female
workers who are to be promoted to supervisor). We
will continue to work hard to improve managers'
understanding of female employees and raise ourfemale employees' awareness of empowerment.

Participants in thediversity lecture〈Female employees〉 ●I hope theselectures will make a difference in theempowerment of women. ●An opportunity
to understand the differences between
male and female employees would begreat. 〈Managers〉 ●It is necessary for
women, men and the company itself tobreak free from their established notions.
●I hope women will play a new role froma female viewpoint and in their own way.

Work-life balance
Work-life balance is an important element inensuring that people enjoy an active career.
To this end, we have various systems to
support our employees.
We have a childcare leave system, a shorttime working system and others for employees
who are rearing children. In fiscal 2012, 46
employees including one male employee tookchildcare leave. In recent years, an increasing

number of male employees take childcare
leave and the number reached a cumulative
total of eight at the end of ﬁscal 2012.
We have a volunteer leave system (for a
maximum of two years and four months) for
employees who want to engage in volunteer
activities. As of June 2013, one employee ison leave as a Japan Overseas Cooperation
Volunteer.

Yo Ishihara
Japan Overseas Cooperation Volunteer
I am on a two-year leave of absence to work
as a Japan Overseas Cooperation Volunteer inNaryn in the Kirghiz Republic. This area istrying to expand its tourism industry toestablish a new source of income. I help the
local government, NGOs and other groups in promoting tourism. I mainly provide support for
operating the tourist information facility. I believe that interest in foreign countries will encourage
local people to accept foreign tourists and provide them with hospitality. To this end, I organize
festivals to introduce Japanese culture, and help with English classes in the Youth Center.

20

With Local Communities and International Society

NGK SPARKPPLUG Group CSR Report 2013

Serving as members of local communities and international society and contributing to creating an abundant society

HighLight

Mathematics game introduced
to public schools as part of our efforts
to build capacity

Ceramica e Velas de Ignicao NGK do
Brasil Ltda. actively engages in capacity
building. In ﬁscal 2012, we carried out aproject to help teachers and students ofpublic schools in Moji to learn more aboutmathematics using a book titled "Enjoy
Adventure of Mathematics in Library".
Believing that giving instructions toteachers is imperative in holding theinterest of students, we held a workshop
for teachers in this project. Ninety one
teachers attended the workshop andbrought the game back to their schools,
introducing it to about 9,000 students inthe ﬁfth and sixth grades. We hope thatstudents find mathematics interesting
through this game and are motivated tolearn more.

Fabiana Cunha General Affairs and Human Resources Dept.
Ceramica e Velas de Ignicao NGK do Brasil Ltda.
We arranged this project to allow young people
from as many communities as possible toparticipate and teachers and family members
to be involved as project supporters because
we believe that these are important factors for21

young people in forming a full character. As aresult, the superintendent of schools in thecity praised our project for producing better
results than expected.

Plants and afﬁliates

NGK Spark Plugs (UK) Ltd.

Komaki Plant

NGK Spark Plugs (UK) Ltd.
gave a track event at a motor
circuit to a group which
introduces motor sports topeople with disabilities.

Komaki Plant participated in
the Komaki Industry Festival
as a supporting entity, andplanned events to entertain
children and adults.

As a company engaged in theauto industry, we have a social
responsibility to ensure trafﬁc
safety. We conduct traffic
safety campaigns on a regularbasis, in which we call out topedestrians on the street toraise their level of awarenesstoward trafﬁc safety.

Woojin Industry Co., Ltd.

NGK Spark Plug Middle East FZE

Plants and afﬁliates

Woojin Industry Co., Ltd.
participated in a free meals
campaign organized by a local
church, for which we prepared
meals.

NGK Spark Plug Middle East FZE
donated 53 CCTV sets to thelargest school for disabled children
in Dubai to help ensure thesecurity and safety of the children.

We hold blood donation eventson a regular basis and encourage
our employees to donate bloodto people suffering from
diseases and injuries.

Miyanojo Plant

Miyanojo Plant

NTK Ceramic Co., Ltd.

Miyanojo Plant participated in theSatsuma Town Summer Festival
at which 160 employees
performed a Teodori dance to themagniﬁcent sound of the Itsutsu
Daiko, Japan's traditional drums.

Miyanojo Plant invited 25 students
from local primary schools to arugby school organized by ourrugby club members to promoteexchange with them.

Employees at NTK CeramicCo., Ltd. received training inbasic lifesaving and AED use
to be ready for emergencies.

22

PARK PLUG Group CSR Report 2013P

For Environmental Protection

Making all-out efforts for environmental conservation to build a sustainable society

HighLight

NGK Spark Plugs (Thailand) Co., Ltd. andBujias NGK de Mexico S.A. de C.V. obtained＊
ISO 14001 certiﬁcation.
Overseas pplants with ISO 14001 certiﬁcation（As of April 30, 2013）

NGK Spark Plugs(UK)
UK)) Ltd.
Ltd
Woojin Industry Co., Ltd.
NTK Technical Ceramics
Korea
Co., Ltd.
Kore
ea C

NGK Spark PlugN
Europe GmbHENGK Spark
park Plugs
Pl(France) S.A.S.

NGK Spark Plugs(India)Ltd.
ia) Pvt. L

NGK Spark Plugss
Malaysia Berhadd

NGK Spark Plugs(U.S.A.),), Inc.

NGK
Spark Plug (Shanghai) Co., Ltd.
N
GK S
Siam
NGK Spark Plug Co., Ltd.
SiNG
NGK Spark Plugs (Thailand) Co., Ltd.
N

Bujias
NGKujias NGde Mexico S.A. de C.V.

P.T.
P
T NGK
K
Busi Indonesia
Ceramica e Ve
Velas
elas de Ignicao
NGK do Brasil Ltda.

NGK Spark Pl
Plugs
SA (Pty.) Ltd.

Our domestic and overseas operating sites
carry on environmentally friendly businessactivities globally under our environmental
management system. Our overseas plants
are currently being encouraged to obtain
ISO 14001 certification on an individual
basis. In fiscal 2012, our manufacturingorganization, NGK Spark Plugs (Thailand)Co., Ltd. and our sales organization, Bujias
NGK de Mexico S.A. de C.V. obtained ISO
14001 certiﬁcation. Accordingly, as of theend of ﬁscal 2012, a total of 15 overseasorganizations are certiﬁed to ISO 14001.
Under the NGK SPARK PLUG Group's Eco
Vision 2015, which is a medium- to longterm vision of our environmental activities,
we will cooperate to draw up a global
ecological vision.

Eco Vision 2015〈websites〉
http://www.ngkntk.co.jp/english/csr/ecovision.html

Bujias NGK de Mexico S.A. de C.V.

23

We formed a team and launched
an important and challenging
project to seek ISO 14001
certiﬁcation in February 2012.
We have improved our way of
thinking and actions andcontinue to contribute toimproving the environment. We
are very proud of being a partof this improvement to leave
future generations with a better
environment.

Response to the revised Water Pollution Control Law
The revised Water Pollution Control Law, which
was designed to prevent underground waterfrom being polluted by hazardous substances,
took effect in June 2012.
Even before this revision came into effect,
NGK SPARK PLUG Group considered that thepollution of underground water by hazardous
substances carries serious risks and so wehave been using our environmental
management system (EMS) to prevent thispollution. Under this system, we have set
operating standards and taken preventive
measures that include constant monitoring of
the situation.
The revised law requires us to identify appliedfacilities, evaluate structural standards, andcarry out inspections and modiﬁcations whennecessary.
The related departments hold discussions anddevelop countermeasures in response to therevision of the Law.
We continue to make full use of our EMS and
use all possible means to reduce the risk ofpollution.

Yoshiaki Furusato
Production Dept.,
Komaki Plant,
Spark Plug Div.
As the revised act covers plating lines for
hardware, we evaluated our structural
standards in comparison with the legal
standards, revealing modifications thatwere required for our facilities. The
necessary modiﬁcations are underway.
We take all possible measures to preventthe pollution of underground water.

New environmental education courses establishedNGK SPARK PLUG Group has established three
new environmental education courses (Basic
Environmental Course, Substances ofEnvironmental Concern Data Collecting
Procedure Course and Environmental
Management System Course) to raise
environmental awareness among our employees.
In fiscal 2012, we conducted a total of 49
environmental education lectures in all sites, and827 employees participated in them.
We continue environmental education toenhance the environmental awareness of ouremployees in 2013 and beyond.

We received requests from participants(through questionnaire surveys) and reflect
them in our education programs to facilitatecontinuous improvement. We also strive to build
a better education system to satisfy the needsof departments and employees and offer a morevaluable education.

Kazutaka Tanaka
Engineering Dept.,
Semiconductor Division
Energy-saving efforts have been mainly on
an individual basis, including reducing thevolumes of paper used, turning off
computer monitors and decreasing waste
and electricity consumption. In the Basic
Environmental Course, I learned that
improving process, also contributes toenvironmental conservation. I continue
promoting environmental activities in mydaily tasks.

24

NGK SPARKPPLUG Group CSR Report 2013

For Environmental Protection

Promoting environmental conservation through all our business operations

HighLight

We consider environmental conservation
not only when manufacturing products
but also when building plants.
Roof greening
Soundproof
walls

Lighting roof

Lighting duct
entrance

Water coolingsystemWater ﬁlter

We adopt environmentallyfriendly practices when planning
construction, including
reductions in noise, vibrations,generating odors and waste
water, and energy saving
measures.
Building a Cafeteria at
Ceramic Sensor Co., Ltd.
We installed soundproof walls on
the rooftop to reduce noise andwater ﬁlters in the exhaust hoodto eliminate generating odors
from the kitchen. As part of ourenergy-saving efforts, we
introduced natural lighting(lighting roof and ducts), androof greening and double
glazing to enhance heatinsulation. We also installed awater cooling system on outdoor
air conditioning units, whichmakes use of the vaporization
heat of water to increase the
efﬁciency of the air conditioners.

Atsushi Nonogaki
Plant Design Section, Production Support Engineering Dept.
We designed the cafeteriabuilding at Ceramic Sensor Co., Ltd., giving special
consideration to local residents in terms of lightemitted from the building, generating odors fromthe kitchen and noise produced by the fans.
The number of windows used was minimized toprevent light from leaking from the building
into the residential area at night. Instead, a25lighting roof and ducts were installed to bringin as much natural light as possible.
Environmental consciousness is important not
only for the completed buildings but also inthe construction processes.
For this reason, we chose low-noise heavy
construction machinery and reduced theworking hours of the construction teams.

Cooling grinding lubricant with water from mountain streams
Kamioka Ceramic Co., Ltd. uses large volumes■ Annual Power Consumption of Filtering Deviceof grinding fluid for NGK SPARK PLUG
products. The warm ﬂuid is reused after being
cooled through an integrated ﬁltering device.
We previously used an oil cooler to cool
grinding fluid, but changed to the use of

Reduced by
150,000kWh

215,000kWhwater from mountain streams in 2011, taking
advantage of the geography of the area.
The total power consumption of the ﬁltering

65,000kWh

device was 215,000 kWh per year before
water from mountain streams was used. After

Before countermeasures

After countermeasuresthe measure was introduced, this was reducedby 150,000 kWh to 65,000 kWh, which is

President Akihiro Toya
［ Kamioka Ceramic Co., Ltd. ］

equivalent to 50 tons of CO2.
To
Fromprocess process

Our plant is located in an area
blessed with nature. We
design our daily operations touse nature effectively. One
such measure is to use snow
stored in winter for watering
our ﬂower beds.

Water frommountainstreams
To trench

Gliding ﬂuid

Used forcoolingRelease of Biodiversity Action Guidelines
The need to conserve biodiversity in the world

efforts in our business based on theis becoming urgent. Since we consider

Guidelines to contribute to biodiversity

biodiversity conservation to be important inpreservation.

preventing global warming＊ and recycling

You can see the NGK SPARK PLUG Group

resources, the NGK SPARK PLUG Group

Biodiversity Action Guidelines on our website

includes them into its environmental agenda(Japanese Only).

and endorses conservation activities.
We formulated the NGK SPARK PLUG Group
Biodiversity Action Guidelines to preserve
biodiversity, and released them on April 1,
2013. The Guidelines call on us to consider

NGK SPARK PLUG
Group Biodiversity
Action Guidelines(Japanese Only)

the relationship between our business
operations and biodiversity and reduce theimpact of the use of energy and resources,
emissions of substances of environmental
concern, and other environmental burdens
during the life of products, thereby
contributing to conserving biodiversity.
We are always stepping up our environmental

We describe
concrete actions
about biodiversity inthis guideline.
〈Websites〉
http://www.ngkntk.co.jp/csr/
communication.html

26

NGK SPARKPPLUG Group CSR Report 2013

Compliance

Striving to enhance our corporate ethics and to remain a company regarded with trust by the international community

HighLight

The Corporate Ethics Helpline system was reviewed
and improved, which resulted in an increase in thenumber of reports received via the system.

Flow after report is received via the Helpline
CSR Committee

Disciplinary Committee
Disciplinary
actionCompliance Committee

Recommendation
Investigation
Committee(Those concerned)

Compliance
Committee
Chairperson
Helpline channel(inside and outside
the company)
Both anonymous andnon-autonomous
consultations are
accepted.

Investigation

Complianceviolator

Results
Employees

When necessary

Yasuo Mori
General Administration
Department

Our internal reporting system, the"Corporate Ethics Helpline," canbe used by employees who havediscovered an actual or potentially
illegal act as a means of seeking
consultation and providing
information. This system was
improved, to enable employees tobe able to report anonymously.
We also made the system better
known to employees through theactivities of the Compliance
Committee and the readings of aCompliance Guidebook.
As a result, in fiscal 2012 we
received more reports than theprevious fiscal year, and weaddressed appropriately all thereports received.

We operate the Corporate Ethics Helpline system with careto ensure that honest reporters will not be disadvantagedby making a report. In addition, we investigate and identify
the facts behind all the reports submitted. We then takecorrective measures on the basis of the results as well as
measures to prevent any recurrence.

Stringent Security Control
It to say, it is essential that companies manage conﬁdential matters properly
in compliance with relevant legislation, including the Unfair Competition
Prevention Act and the Act on the Protection of Personal Information.
Conﬁdentiality management has become more important and complex withthe rapid progress in information technology in recent years.
Our company established Confidentiality Management Regulations to manage
the private information of our company, customers and suppliers properly. In
fiscal 2012, we strengthened implementation of the company-wide
confidentiality management rules formulated in fiscal 2011. Specifically, we
standardized the rules by reviewing and revising the standards for setting
confidential management areas, and clarifying the rules concerning bringing
electronic devices into the company on account of their rapid increase infunctionality.

27

Tadashige Maegawa［ General Administration Dept. ］
We continue to conduct
activities to promote andimplant security control
company-wide.

NGK SPARKPPLUG Group CSR Report 2013

Risk Management

Being prepared to minimize a range of possible risks

HighLight

We carried out a company-wide
emergency drill to deal with a major
earthquake.
The company-wide emergency drill wecarried out on March 2013 was basedon the Business Continuity Plan (BCP＊)
and emergency response plan weestablished in 2012 to deal with amajor earthquake. The purpose of thedrill was to ensure that employees
understand the disaster manual, andtrain employees to behave calmly andwithout confusion when an earthquake
actually occurs.
An Emergency Headquarters was set
up immediately after the drill started toreceive reports from each plant/ofﬁce
on the safety of employees and on thesituation at the plant in order todetermine the damage conditions andconﬁrm how the communications would
work in the event of an emergency.
Emergency staff conducted asimulation drill using maps tosimulate the experience of copingwith a situation in which informationis reported in quick succession,
allowing them to realize how difﬁcult
it is to make proper decisions in atense situation.

Yuki Aida General Administration Dept.
The purpose of emergency
drills based on the BCP is tocontinue to improve the organization's business
continuity capacity. This capacity comprises thethree components given on the right.
We conducted the simulation drill using maps,
focusing on item (3), with the aim of giving
participants full awareness through firsthandexperience of the difficulties inherent in
coping with an emergency.

(1) Measures to strengthen earthquake
resistance, establishing backup facilities
and systems, etc.
(2) Preparing for an emergency in terms ofrole sharing, criteria for decisions, action
procedures, etc.
(3) Improving skills of personnel so that they
are capable of taking prompt and ﬂexible
action to cope with an emergency

28

Corporate Proﬁle（As of March 2012）
Corporate NameNGK SPARK PLUG CO., LTD.

Head Ofﬁce
Foundation

14-18 Takatsuji-cho, Mizuho-ku, Nagoya
October 26, 1936

CapitalBusiness

47,869,270,000 yen
1. Manufacturing and selling spark plugs
and related products for internal-combustion engines.
2. Manufacturing and selling technical ceramics
and applicable products.
34 subsidiaries (9 in Japan, 25 overseas), 6 afﬁliates

Group Companies

Financial Data
■ Operating income

23,754-30,000

0
2008

2009

2010

2011

2008

2012
ﬁscal year

2009

2010

Non-consolidated（million yen）
40,000Consolidated

11.2

15,737

20,90925,52424,47523,68021,3480

13,5090

13,298

10

11.3

7.0

8.4

-10
-20

-71,669-74,1172012
ﬁscal year

Consolidated（％）
20

20,000-20,0002011■ Return on Equity (ROE＊)■ Net income

-30
-30.6

-80,000

-40
2011

2012
ﬁscal year

2008

2009

2010

■ Sales Composition by Segment■ Number of Employees

Other 2％（people）
14,00012,00011,795

10,000Consolidated

5,845

6,000
4,000

5,731

8,000

5,726

302,798
million yen

Non-consolidated

11,979Automotive
Components
82％

2012
ﬁscal year

6,050

Technical
Ceramics
16％

2011

12,563

2010

2008

2009

2010

2011

5,881

2009

12,064

2008

11,767-60,000

17,708-20,000

50,000-40,000

24,47828,770-10,000

Consolidated

12,1850

15,162

10,0007,566

220,328

284,746

224,811269,232

231,123

20,00010,683100,000

243,914150,000

206,487

200,000

234,697

250,000

292,121300,000

Non-consolidated（million yen）
30,000-5,222

Consolidated

302,798

Non-consolidated-20,766■ Net sales（million yen）
350,000

2,000※As a result of organizational changes on April 1, 2013, theCommunication Media Components Group and the Technical
Ceramics Group was integrated into the Technical Ceramics Group.

29

0
2012
ﬁscal year

Manufacturing & Sales Organization
Sales Organization
Other

Network（as of March 2013）
EuropeAﬃliated Subsidiaries…3

North America
Aﬃliated Subsidiaries
…4

Japan
Aﬃliated Subsidiaries ……………… 9
Equity Method Aﬃliates …………… 2
Aﬃliates to which the equity methodof accounting is not applicable … 1

Asia, South America and Others
Aﬃliated Subsidiaries ……………… 17
Non-aﬃliated Subsidiaries ………… 1
Equity Method Aﬃliates …………… 1
Aﬃliates to which the equity methodof accounting is not applicable … 3

Glossary
Compliance（P.2）･･･When a company, as a member of society,fulﬁlls its corporate responsibility by enhancing its corporate
ethics, and by understanding the spirit and the purport of andcomplying with laws and regulations, international rules, social
norms, and various in-house regulations.
Industrial physician（P.19）…A doctor who is involvedin managing the health of laborers in workplaces. The
Industrial Safety and Health Act mandates companies
constantly employing 50 workers or more in theworkplace to hire an industrial physician.
Three-way catalyst（P.10）…A device for cleansing hazardous
substances contained in gasoline-engine automobile exhaust(carbon monoxide [CO], hydrocarbons [HC] and nitrogenoxides [NOx]) through oxidation and conversion.
Diversity（P.2）…Utilization of diverse human resources,
regardless of ethnic origin, nationality, gender, age, etc.
Global warming（P.26）…A phenomenon where theaverage global temperature is increasing due to higher
concentration of greenhouse gases that trap heat in
the atmosphere and heat the surface of the Earth.
Fabless（P.2）･･･Fabless (without fabrication) refers tothe business model of a company which, althoughbelonging to the manufacturing industry, engages only inthe design and development of products and contracts
out production rather than owning its own factory.
Risk Assessment（P.19）…Method to detect and evaluate potential
dangers and hazards in a worksite, and eliminate/reduce them.
Risk Management（P.2）…Activities to systematically manage
various risks related to business in corporate management.
Speciﬁcally, activities to prevent risk occurrence, or reducethe damage incurred when a risk arises.

About the cover illustrations

BCP（P.28）…Business Continuity Plan. A plan of action
to be taken by a company when an emergency situationarises, such as a major disaster or a large-scale
accident, to ensure business continuity at a certain
level, or if suspended, to realize quick recovery.
CSR（P.2）…Corporate Social Responsibility.
CSR procurement（P.2）…CSR procurement is a continuouspurchasing and procurement practice, requiring suppliers
to comply with procurement criteria in terms of social
responsibility activities. The CSR procurement criteria
include business management of human rights, work
conditions, as well as workplace safety and health, etc.
IR（P.15）…IR stands for Investor Relations. Activities todisseminate detailed information on management, ﬁnancial
conditions and business performance of a company.
I S O 1 4 0 0 1（ P . 2 3 ）… A n i n t e r n a t i o n a l s t a n d a r d f o renvironmental management systems. Business sites thathave established systems in accordance with the standard
can receive certiﬁcation from an external organization.
QC Circle Activities（P.14）…QC stands for quality
control. Small groups are formed within the workplace
to encourage autonomous handling of such issues assafety measures, reduction of faulty products, as wellas quality improvement and quality control of products.
ROE（P.29）…ROE is one indicator of a company's
proﬁtability. ROE reveals how effectively shareholder equity
is being used; higher ROE means higher proﬁtability.
SOFC（P.2）･･･SOFC stands for solid oxide fuel cell. An
SOFC generates electricity and heat from the reaction
between hydrogen and oxygen.

2011

2012

2013

CSR Report 2013
When publishing our ﬁrst CSR report in 2011, we
CSR Report 2011
CSR Report 2012
wanted the cover to depict a sustainable society.
We decided to use a series of illustrations thatwould connect the three CSR reports, depicting
the development of a city with a road leading onto the next illustration. The illustrations include
the products that our company deals with,including automobiles, wind power plants, andhousehold fuel cells. The ponds illustrated on the
covers of the three Reports are in the shapes ofthe letters "C" "S" and "R." Arrange the three CSR reports in a row and enjoy the combined illustrations.
日本特殊陶業グループ CSR報告書 ［ダイジェスト版］

日本特殊陶業グループ

CSR報告書 ［ダイジェスト版］

日本特殊陶業グループ

CSR報告書 ［ダイジェスト版］

30

CSR Report 2013

【Period covered】

14-18 Takatsuji-cho, Mizuho-ku
Nagoya, Aichi Prefecture 467-8525, Japan
http://www.ngkntk.co.jp

From April 1, 2012 to March 31, 2013
Some other very recent activities and cases are also
included.
【Organizations Covered】■ For inquiries, please contact our CSR Promotion Department
Tel：+81 52-872-6248 Fax：+81 52-872-5999
E-mail ： csr@mg.ngkntk.co.jp●Social aspects：NGK SPARK PLUG CO., LTD.
However, this Report may also cover the activities ofsubsidiaries and aﬃliates inside and outside Japan. In
such cases, speciﬁc company names are indicated.
●Environmental aspects：NGK SPARK PLUG Group・NGK SPARK PLUG CO., LTD.
・Nine consolidated domestic subsidiaries and one
aﬃliate【Publishing Director】Shinichi Odo, President【Editor in Chief】Yukashi Ukai, General Manager of the
CSR Promotion Oﬃce
【Published】September 2013 (Publication of the nextreport is planned for September 2014.)

日本特殊陶業は、
チャレンジ25キャンペーンに参加しています。