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Notice of Changes in Specified SubsidiaryJanuary 30, 2020Press Release

NTN Corporation (hereafter, the Company) hereby announces the following change in specified subsidiary.

1. Reasons for Change

As the Company no longer effectively controls NTN-LYC (Luoyang) Bearing Corp. (hereafter the Subsidiary), which was one of the Company's consolidated subsidiaries, from the view of control approach, the Company has excluded the Subsidiary from the consolidation scope and regards it as the equity-method affiliated company.

2. Outline of the Specified Subsidiary

(1) Company Name NTN-LYC (Luoyang) Bearing Corp.
(2) Address Luoyang Technology Park, Luoyang City, Henan Province, China
(3) Name and Position of Representative Hisao Saitou, President
(4) Line of Business Manufacture and sale of bearings
(5) Capital 73.8 million USD
(6) Date of establishment January 24, 2011
(7) Major shareholders and shareholding ratio NTN (CHINA) Investment Corp. 50.0%
Luoyang LYC Bearing Co., Ltd. 50.0%
(8) Relationship between the Company and the Subsidiary Capital relationship The Company has 50.0% of indirect investment ratio for the Subsidiary.
Personnel relationship The Company dispatches officers to the Subsidiary.
Business relationship The Subsidiary manufactures and sells the Company's products overseas.
(9) Financial position and operating results of the Subsidiary for the past three years (Millions of Chinese yuan)
Fiscal year end FY2016 FY2017 FY2018
Net assets 276.8 264.0 238.4
Total assets 675.3 728.4 541.5
Net sales 193.3 297.1 254.0
Operating income -11.8 3.9 -11.5
Ordinary income -26.8 -12.8 -25.6
Income before income taxes -31.2 -12.8 -25.6
Net income -31.2 -12.8 -25.6

3. Date of Change

December 20, 2019

4. Future Outlook

The effect this change will have on our business are minor.