2014

NTN Corporation
Shigeyoshi Takagi, President

Let me start by wishing you all a happy New Year. I hope that you had a wonderful New Year's Day.

In April last year, NTN embarked on the two-year mid-term management plan “Revival 2014” with a key goal of “reforming business structure to generate profit.” With the yen recovering from its long term highs, centralizing management resources to priority areas will be the key to ensure that the company achieves its goal of reforming its business structure to ensure profits.

Yet the world continues to evolve at such a great rate these days. Instead of focusing on “Revival” to simply return to where we were previously, NTN has put forward various new policies and initiatives with the goal of “Growth” in time for the company's 100^th anniversary since being established, and to develop a framework that will assure the company of a new profit base well into the future.

(1) “Expanding the aftermarket business with technical services”

Until now we have developed a supply chain for the aftermarket business, however a new “Aftermarket Business Headquarters” was established in October last year to drastically increase the underlying support system. Monitoring of the state of bearing operation, provision of technical analysis services, and provision of technical advice with mobile technical service units will all play a role in increasing the number of equipment repair and automotive parts business around the world.

(2) “Greater profits in the Automotive Business”

Improvements are being made to the automotive business to drastically increase profits. With a greater number of NTN products being newly adopted around the world, reviews are being made to design and manufacturing methods, as well as communization of parts. Greater local procurement and further local production of pre-processes have been made based on the “on local site with local materials by local personnel” concept to bolster the effects of today's weaker yen, while also creating a system that will not be affected by exchange rates into the future.

(3) “Faster development of module and system products from single products”

In the R&D field, more focus has been placed on faster development of “module products” and “system products” rather than individual bearings. Combining products with auxiliary systems and control technology has allowed development of high value-added products, which contributes to more compact and lighter weight designs, a reduction in the number of parts, and more importantly electrification, environmentally-friendly systems, and safer products, by identifying the requirements of customers as early as possible.

The sign of the zodiac for 2014 is the horse. An animal that learns to stand very quickly after being born, the horse is also said to be a metaphor for a “quick startup.” This applies perfectly to NTN this year as the company shifts from “Revival” to “Growth” by quickly introducing a range of initiatives. NTN hopes to benefit from the results of these policies just like a newborn horse would spring up.

In closing my New Year's remarks, I extend my prayers for health and prosperity to you and your family.