Six Forms of Capital

The NTN Group promotes management that integrates six forms of capital to contribute to solving social issues and enhancing corporate value. By optimally allocating and linking each capital, we aim to strengthen our competitiveness as a manufacturing company, achieve stable growth, and enhance profitability while responding to changes in the business environment. Through its value creation process, NTN continuously enhances the quality of its six forms of capital, aiming to realize a “NAMERAKA Society” by driving medium- to long-term enhancement of corporate value.

Our financial structure provides the basis for the sustainable growth of the NTN Group, and we aim to reinforce it through the steady recovery of business performance every fiscal year, sale of idle assets, thorough financial management within the Group, and other efforts, and thereby improve our free cash flow, equity to capital ratio, and net D/E ratio.
We will boost our “earning power” by improving operating margin and reducing inventory and fully strengthening the financial structure that underpins the transformation of our business portfolio. Furthermore, we will make active use of sustainable finance, which links the achievement of targets in sustainability activities with the terms of loans, to accelerate the execution of various measures through stable financing. We aim to achieve sustainable growth and enhance our corporate value, and at the same time, contribute to solving social issues.

We are promoting production reforms with a view to reducing lead time across all supply chain management (SCM) processes, from material procurement to manufacturing and sales, as well as building new production processes to realize inventory reduction. Furthermore, as the human resources responsible for production in NTN, a “Monozukuri” (manufacturing) company, form the basis for our value creation, we are systematically nurturing the next generation through the “NTN Meister Certification” and other means and developing a framework for passing on the knowledge and skills of expert technicians.
To further strengthen our “Monozukuri” capabilities, we will advance efforts to consolidate the functions for managing production technologies, standardize processing methods and equipment, and enhance “Monozukuri” education. In addition, we will support advanced and efficient production through the use of robots and AI, driving forward the transition to “smart factories.”

We have research and development (R&D) bases in Japan, the Americas, Europe, China and India to support global market needs. The R&D bases mutually engage in active technological and human resource exchanges and share information through a database on the design information they have researched and developed, as well as information pertaining to prototypes and experiments, production technology, and customer projects. By doing so, we are accelerating the creation of new technologies and products from a global perspective.
The NTN Group’s intellectual property is the source of our value creation, and we globally promote the appropriate protection and utilization of intellectual property rights in line with our business strategy and R&D strategy. In addition to intellectual property rights that serve to maintain and strengthen the competitiveness of our core technologies and products, we also utilize IP landscaping in new fields to create intellectual property that can help us to secure first-mover advantage.

Based on our belief that “the company is its people,” we are striving to strengthen the basis of human capital that is indispensable to the sustainable growth of our Group, and to develop diverse human resources. We are also working to develop rewarding environments and systems to allow employees to maximize their capabilities through work, think and act independently, and continue to grow. At our overseas business sites, local employees, including the presidents of overseas subsidiaries, play an active role in management and operate the businesses in line with the management policies of the global head office.
We aim to strengthen the development of human resources who will lead the next generation, such as by reviewing our education and training systems to promote self-directed career development, respond to rapid changes in the business environment, and realize continuous enhancement to our corporate value.

We advocate approaching business activities based on our Management Policy of being “a company that is trusted and needed by communities including stakeholders,” and we have clearly established our “Stance to Stakeholders” in writing. We seek to maximize customer satisfaction and trust by providing products and services of superior quality, safety and reliability. We aim to build good partnerships with our business partners based on mutual trust and work together for mutual growth and development in a fair and free environment. In addition to respecting cultures and customs in the local communities where we conduct our business and meeting their expectations through our business activities, we also strive to realize return for shareholders through sustainable profit growth and build long-term trust relationships with shareholders through active communication.

We have positioned coexistence with the global environment as a top priority. In light of that, we are committed to preventing environmental pollution in our business activities and conserving natural capital. At the same time, we have established the Environment Policy of making constant efforts to contribute to the sustainable development of society through our technologies, and we engage in business activities in line with this policy. Bearings and driveshafts, our flagship products, are environmentally friendly products that help reduce energy loss, and green energy products are renewable environmentally friendly products that make use of sustainable energy sources.
We are quantifying the degree of environmental contribution of these efforts, and will continue working to develop and supply products that further aid the environment. In addition to managing and reducing the chemical substances used in our products and manufacturing processes within our business activities, we also put effort into conserving biodiversity and engaging in environmental contribution activities in local communities.