Dialog between the president and employees

Participants ＊The relevant stakeholders each participant closely interacts are shown in brackets

TOPIC 1 We have taken on challenges for "transformation" over the past several years. Do we feel that NTN has transformed since joining the Company or compared to 10 years ago?

Y.O.：

The image of NTN has been "hard" in a positive way. In recent years, however, I have more comments from other employees and stakeholders that "the company has changed." I think our TV commercial (launched two years ago) has also been a large influence. The sound of the phrase "NanTe Nameraka" ("How smooth" in English) gives some customers an impression of NTN being soft and flexible.

M.K.：

I have worked here since I graduated from school, and it is this very place at this very moment that I feel the "transformation." Previously, there was an atmosphere of a top-down approach, but now I feel that this meeting opportunity is the first step for transformation.

N.T.：

I do not feel major changes over the past 10 years. However, since the term "transformation" was introduced in the Medium-term Management Plan in the past few years, it appears that people around me have developed an awareness for the "need for change." On the other hand, even though the concept of "transformation" is there, our environment has not been prepared enough for accepting it. I think we need to raise an awareness and create a culture where employees can accept a transformation.

A.O.：

I was transferred to the head office last year after working as an on-site technical support staff as well as in research and technology development. In the workplace, even though employees are aware of the NTN SPIRIT, it has not been put into practice. In addition, while each individual works hard, I feel they are not active in cross-divisional interactions. I currently belong to the environment division, and there are many things that cannot be accomplished by our division alone. Yet, everyone has already set his or her scope of work, making it difficult to cross boundaries.

Y.K.：

I belong to the procurement division. A major change for us is that we have more interactions with overseas divisions in recent years. However, although the head office functions as Japanese headquarters, it has not been functioning enough as global headquarters. Currently, each region has an authority to conduct its own procurement. In order to unite as a procurement division by promoting mutual understanding and exchanging information with overseas subsidiaries, and become truly global headquarters, we need further transformation.

T.H.：

Compared to when I joined the Company in 2015 (when the previous Medium-term Management Plan was established), I feel that operations are required to be reexamined more intensely.This has contributed to saving on man-hours. Although we have the intention to change the Company as a whole, it appears that we have not yet determined how to change it.

President Ohkubo：

I think it would be hard for a company to be transformed in just a few years after having been in business for 100 years. However, something to trigger us is necessary. Even if we make a change on the surface, it would be meaningless unless we change essentially. If we are the only ones who think that we made a change, that is a mere self-satisfaction. The change needs to be noticeable to outsiders. It may not be easy to change after 100 years of establishment, but I keep talking about this because we won’t change unless we voice it. As it has been only three or four years since we laid out the "transformation" plan, I did expect that many of you have not felt its effect.

TOPIC 2 We have promised our stakeholders to achieve a "smooth society." How should we work toward this?

Y.O.：

For our customers, our first priority is to follow our corporate philosophy that "We shall contribute to international society through creating new technologies and developing new products." Specifically, we must know market needs, identify potentials, and act by adding something uniquely NTN there. However, we still have challenges in the action part. We have guidelines for each business unit, but it is difficult to visualize specific actions.

M.K.：

It is important to get closely involved in our local community through regional development and social contribution activities. From the standpoint of fostering the next-generation, we have held NTN Rotating School, where children can learn about bearings, the environment, and energy-saving technologies. I believe that a "smooth society" will be achieved by building relationships that enable local communities and NTN to grow together.

N.T.：

In terms of human resource development, it is important to create a communicable workplace. The opposite of "smooth" is "rough." We do not want a workplace where employees'minds are roughed up. While benefits and vacation are essential, it is important to maintain a workplace where employees can communicate freely and pursue a self-actualization. I hope the company will be a place where we can create something good even out of disagreements.

A.O.：

The environment, I think, is an issue we must actively get involved in by recognizing that it is something we should take initiatives. For example, sales representatives who get in contact with customers know the best what kind of environmental information the customers are looking for. So, our environment division and sales representatives need to work together in response. In the midst of tightening environmental regulations, if an environmentally hazardous substance is found in one product, customers consider that all products may be in violation of environmental regulations. Therefore, we need to promote environmental education to increase the understanding of laws and regulations.

Y.K.：

When I meet our business partners, I am often told that "there are many sincere people at NTN." I think this is the result of earnest and hard work by our predecessors and factory workers. I believe that a "smooth society" can be achieved by creating our fans and working together to provide steady supply, reduce costs, and maintain high quality through procurement processes.

T.H.：

When providing information to our shareholders, analysts, and newspaper reporters, we need to get more NTN fans. I think it is not easy for the general public to understand what "smooth society" is. We can think of examples such as a society where machines work smoothly, to build a recycling-based society with natural energy products, or to make even people’s mind smooth through our bearings. Perhaps, specific goals may help people to understand a "smooth society."

President Ohkubo：

The definition of "smooth" is more than one. It is important that each of us think what "smooth" means. The NTN founders'spirit consists of "frontier spirit" and "coexistence and co-prosperity spirit." Adopting something new leads us to "frontier spirit." There is no end to transformation. As soon as we see a change, the next transformation begins. There is no way to change without adopting something new.
In addition, while NTN is a for-profit organization, our business is ultimately about contributing to society. This is the "coexistence and co-prosperity spirit." I hope not only NTN but also every company to contribute to society. We provide opportunities to learn about bearings through "NTN Rotating School." I would be happy if people develop an interest and join our company, but it is also okay if they succeed in other companies. Through bearings, we help people to develop an interest in environment, too. If we can open up such opportunity, that is also a way to contribute to society.

TOPIC 3 What should we do to make NTN a better company?

M.K.：

Until today, I thought that "transformation" was something hard and big and the term was intimidating by itself. However, today’s conversation made me realize that we can start with a small project, that something new is something fun, and that is where the root of "transformation" lies. As NTN continues to globalize, raising awareness of our corporate philosophy and founders'spirit are becoming more important. I feel that we need opportunities to share the President’s message with many of the employees.

Y.O.：

I think that the NTN SPIRIT serves good as a guideline or decision-making criteria for employees. I believe the capabilities of NTN will grow greater and stronger if we can expand it globally. In cases of other companies, where their own "way" is spread through, the management capability is strong. It is very important to make the NTN SPIRIT spread through.

A.O.：

The reduction of CO₂ and prevention of global warming are major challenges that everyone is facing today. It is important that each employee have a sense of ownership toward the issue. For example, I would like to properly evaluate and disclose the environmental friendliness of our products. Then, using this as a benchmark, each department throughout the Company can work to improve the environmental performance of our products.

T.H.：

As I publish internal publications, I feel that it is important to share the President’s message. In today’s meeting, we have learned many ways to interpret "smooth." Now, President Ohkubo, how do you describe your "smooth"?

President Ohkubo：

I use the term in various contexts. There is no absolute definition of "smooth." I think each person can pursue an ideal "smooth" that fits in his or her position. However, I would like to cherish the term "smooth" as it sounds pleasing to the ear.

Y.K.：

Smooth communication is another example. There are people we have never met among our overseas suppliers. I am realizing the importance of communicating our procurement policies by talking to them face to face.

N.T.：

Human resource development is carried out not only by the human resource development division at the head office, but also at each workplace through personnel training. We intend to share information and exchange opinions with domestic and overseas bases more than ever, and come up with better measures for human resource development. In addition, I think it will become more important how managers interact with their staff. What kind of skills do you think managers should have?

President Ohkubo：

Personnel training certainly varies depending on the culture and custom of each country. However, even with different nationalities, we can surely understand each other as the same humankind. While we respect different aspects such as recruiting systems and school educations, we can think globally on common grounds. Managers do not have to think as big as educating people. Rather, they just need to pass on their knowledge to their staff. When a new task comes in, the first thing they have to do is to fully understand it for themselves before passing it down to the staff. If the staff produced a good result, then give them a good feedback. I think positive feedbacks should be actively communicated, although mistakes can also be reminded. I hope our Company embraces such a culture.

Iguchi：

Thank you, everyone. In today’s dialog, we had a frank conversation with President Ohkubo about "transformation" as well as how our corporate philosophy has been adopted in the workplace. The "adaption" does not have a specific form or answer but rests in the mind of each of us. As President Ohkubo mentioned, "transformation" is not something to be initiated by a company. It is important to understand that each employee who works there must have a mindset to initiate changes. After talking directly with the President today, I believe everyone here has developed a sense of empathy and become motivated to put it into practice. This was the first dialog between the president and employees, and I feel that it was a great opportunity for us to raise awareness. By continuously holding such dialog, I believe we can create a virtuous circle of awareness-raising for "transformation." I hope we spread such awareness throughout the NTN Group and contribute to achieving a "smooth society" that our company is aiming for.