Medium-term Management Plan
NTN started the Medium-term Management Plan “DRIVE NTN100” in FY2018 when NTN celebrated its 100th anniversary with the aim to drive forward transformation of business structure for the new 100 years. We set the three years from FY2021 to FY2023 as “DRIVE NTN100” Phase 2, and are working on various measures.
NTN Group Vision
NTN aims to realize a “NAMERAKA Society*” through putting our corporate philosophy into practice. We have newly formulated the materiality necessary to move toward the realization. By addressing this materiality, we will contribute to the achievement of “SDGs (Sustainable Development Goals)” and promote ESG management.
*A NAMERAKA Society: A society where people can easily lead a secure and fulfilling life in harmony with nature.
Overview of “DRIVE NTN100” Phase 2
Business Operating Policy
While we continue the basic policy of driving forward transformation of business structure set out in “DRIVE NTN100” from FY2018 to 2020, we focus on strengthening the financial structure in particular and aim to build a corporate structure that can respond promptly to changes in the management environment.
Business Environment and Strategy
We identify the issues by region as a business environment surrounding us and formulate appropriate strategies.
Target Areas to Invest R&D Resources
In R&D, we identify the six areas where we will concentrate our resources for future growth to promote response to carbon neutrality and pursue safety, security, and comfort.
Rebuild Business Portfolio
We will rebuild business and product portfolio. We will categorize main businesses into the three sectors: “create,” “growth,” and “harvest.” We will concentrate management resources on these sectors and expand the ratio of aftermarket business and industrial machinery business to approximately 40% in FY2030.
Business Strategy
Aftermarket Business
In addition to enhancing the product lineup and instant delivery inventory that we have been working on, we will focus on the transformation of business, from selling products to providing services with the aim of further expanding sales.
Industrial Machinery Business
We will expand sales and advance technologies where we have strengths including bearings for wind turbines, as well as CMS that monitors operating conditions of bearings for wind turbines to contribute to carbon neutrality. Additionally, we will contribute to labor savings by providing bearings with sensors and module products for robots.
Automotive Business
We will work to strengthen the competitiveness by expanding new products adapting to EVs and electrification. Hub bearings and driveshafts, both of which NTN has large global market shares, are still used in EVs and HEVs. We will focus on developing high performance products adapting to electrification and fuel efficiency regulations.
Strengthen Management Bases
Financial Structure Strategy
We will transform the financial structure to ensure stable profits without relying on demand environment. While continuing to reduce fixed costs in Phase 1, we will focus on reducing variable cost through reforms as to procurement and others in Phase 2. We will also improve productivity while refraining investment through production reorganization and production reform.
Promote Digital Transformation (DX)
We will promote DX (Digital Transformation) in each field including sales, production, procurement, logistics, finance, and CMS. In the future, we will integrate the data we have accumulated to upgrade our business administration and create new business models.
Management Targets for Phase 2
The targets for the final year of Phase 2 (FY2023) are net sales 700 billion yen or more and operating income 42 billion yen or more.
