2015

NTN Corporation
Hiroshi Ohkubo, President

A Happy New Year to you all. I wish you all the best for the upcoming year.

NTN has been implementing a number of policies such as improving profits in the automotive business and expanding the aftermarket business with the aim of “reforming business structure to generate profit” as part of the medium-term management plan “Revival 2014.”

A new medium-term management plan will start from April this year and run through to 2018 in the leadup to Company's 100^th anniversary. A range of new policies will be enacted based on the three Basic Policies of “Growth Management,” “Earning Management” and “Establishment Management” to build a foundation for achieving “NTN's FY2025 Vision.”

With 2015 being such an important year as the final year of “Revival 2014” and the starting point “for further growth,” a focus will be placed on the following four points.

(1) “Growth” with the aftermarket business

The aftermarket business system was strengthened greatly in April last year. NTN is spending considerable effort on providing technical training such as mobile activities around the world, which are bringing positive results including securing new contracts. Greater effort will be made cooperating with distributors with the aim of helping customers lower their maintenance costs, and continuing to secure aftermarket orders for equipment and others on a global scale.

(2) “Growth” with new products and cutting edge technologies

NTN will be accelerating development of module and system products. Business will be expanded to cover new industries such as next-generation vehicles and new energy fields through the use of proprietary cutting edge technologies.

(3) “Earning” with core products

The profitability of core products such as CVJ (Constant Velocity Joints) will continue to be increased. The effects of exchange rates will be utilized efficiently under the concept of “on local site with local materials by local personnel.” New types of “Monozukuri” will be introduced based on NTN's proprietary technology with the aim of reducing manufacturing costs. NTN will seek to further increase added-value by proposing new technologies as well as improving testing and evaluation functions in fields that NTN excels at, like aircraft, high-speed rail and wind power generation.

(4) “Establishment” with an even stronger business structure

NTN marks its 100^th anniversary in 2018, and aims to become a company that will continue growing for the next 100 years. While efforts will be made to enhance compliance and governance systems as well as quality and safety management systems on a global scale, NTN will also contribute to revitalizing local communities via its CSR activities. A firm financial foundation will also be established as part of efforts to improve balance sheets.

With so many changes occurring with global dynamics, I hope to develop NTN into a stronger company and make 2015 a new start on the way for further growth.

In closing, I wish the very best of health to you and your family into the New Year.