Third-Party Opinion
Third-party opinion on the NTN Report 2026
Professor, School of Business Administration, Kwansei Gakuin University; Ph.D. (Commerce)
Chika Saka
Profile:
Professor Saka currently serves as a member of the Sustainability Standards Board of Japan (SSBJ), an Expert Member of the Financial System Council of the Financial Services Agency, a member of the Business Accounting Council of the Financial Services Agency, an Associated Member of the Science Council of Japan, Vice President of the Japan Corporate Social Accounting and Reporting Association, an Executive Director of the Accounting and Economic Association of Japan, an Executive Director of the Japanese Association for International Accounting Studies, a Councilor of the Japan Accounting Association, a member of the Sustainability Capacity Building Council of the Japanese Institute of Certified Public Accountants (JICPA), an expert member of the IES Review Committee of JICPA’s Continuing Professional Development Training Council, and a member of the International Panel for Accounting Education (IPAE) of the International Federation of Accountants (IFAC), among other roles. Her publications include Understanding Sustainability Standards (Nikkei Bunko, 2025, co-authored) and Global Corporate Gigatrends Visualized through Accounting Big Data (2026, co-authored). Recipient of the Japan Accounting Association Award, among others.
Noteworthy points in NTN Report 2026
The NTN Report 2026 (hereinafter, the “NTN Report”), covering the culminating year of the Medium-term Management Plan “DRIVE NTN100” Final, summarizes the achievements to date and presents the direction that will lead into the next Medium-term Management Plan.
A major feature of the NTN Report is that, by linking financial and non-financial information, it presents a clearer path toward corporate value creation.
(1) Visible Leadership
The most important factor in integrating sustainability with management strategy and linking it to the enhancement of corporate value is leadership at the top of the organization. In the NTN Report, this leadership has been made visible.
The CEO Message conveys a stance of personally leading efforts guided by the philosophy of “identifying and delivering sustainable products and services to society.” These efforts include strengthening competitiveness through the coordination of design, procurement, manufacturing, and sales; providing solutions through the use of AI and data; advancing carbon neutrality; and further strengthening human capital management and governance. Each Executive Officer speaks, with respect to their own area of responsibility, not only about the progress and achievements of the Medium-term Management Plan but also about remaining challenges and future direction, conveying a strong determination and sense of responsibility to see structural reform through to completion.
Furthermore, this year, a new roundtable discussion among young managers has been included for the first time. Through the words of employees working on the front lines themselves, the report conveys the practice of the corporate philosophy and future challenges, revealing a picture of management and the frontline working as one to drive transformation, along with the leadership demonstrated by each individual in their respective position.
(2) Corporate Value Creation Driven by Structural Reform
In the NTN Report, the relationships among risks and opportunities, competitive advantage, the business model, and outputs/outcomes within the value creation process have been organized more clearly, and the report as a whole is structured accordingly. What stands out in particular is that “structural reform” is positioned at the core of corporate value creation. Through the review of the business portfolio and the expansion of the aftermarket business, NTN strengthens its business competitiveness and management foundation, and the report presents the achievements and challenges of the Medium-term Management Plan, together with the direction toward the next Medium-term Management Plan, as a consistent path of value creation.
In FY2025, in addition to the improvement in operating income, the enhancement of “earning power”—including the generation of operating cash flow and free cash flow, and the optimization of inventory—was demonstrated through concrete figures, confirming that structural reform is steadily translating into financial results.
(3) Co-creation with Stakeholders
In the NTN Report, the stance of creating corporate value through “co-creation with stakeholders” has been articulated more clearly. Building on engagement with investors, the human resources strategy has further enhanced initiatives to improve employee engagement and instill a sense of purpose. In addition, the CEO personally holds town hall meetings at sites in Japan and overseas, engaging in repeated direct dialogue with employees, reflecting a stance that positions human capital as a source of corporate value creation.
Furthermore, the utilization of AI and digital technologies, the promotion of respect for human rights across the entire supply chain, environmental initiatives, and the strengthening of governance are organized as the management foundation that underpins the sustained enhancement of corporate value.
Integration of Sustainability and Corporate Strategy
The essence of integrated reporting lies in “integrated thinking”—the creation of corporate value not only through financial capital, but through the utilization of a diverse range of management capitals. In the NTN Report, starting from the corporate philosophy, structural reform and the initiatives that support it—AI and digital technologies, human capital, the environment, human rights, and governance—are organized as a single value creation story leading to the enhancement of future competitiveness and cash-generating capability.
Going forward, the management environment surrounding NTN is expected to undergo even greater change. Even amid such change, I look forward to NTN achieving a further leap forward as a company that reconciles the realization of a sustainable society with the enhancement of corporate value—leveraging the strengths in technological capability, quality, and frontline execution that it has cultivated over more than 100 years and building on the management foundation established through structural reform.
Response to third-party opinion
We express our sincere gratitude to Professor Saka for providing us with valuable insights.
We are greatly encouraged that, having reviewed our initiatives from both financial and non-financial perspectives, Professor Saka recognized that the path toward corporate value creation has become clearer. In particular, her recognition of the fact that structural reform is steadily translating into financial results, as well as of our dialogue with stakeholders and our stance of striving to translate the voice of each and every employee into transformation, has given us greater confidence that we are moving in the right direction.
Moreover, through our efforts over the past two years, we have renewed our recognition of the importance of advancing sustainability and financial strategy in tandem, and of linking the two within management in order to drive improved profitability and sustainable growth. We are greatly encouraged that Professor Saka focused on this point, and it will serve as a significant source of support going forward.
We sincerely accept the valuable views shared with us this time, and, with an eye toward the next Medium-term Management Plan, we will advance our initiatives and further enhance information disclosure, so as to translate transformation into steady growth.