(January 4, 2012)

I would like to extend warm greetings to all of you at the beginning of the New Year. I also wish to extend my deepest sympathies to all those affected by the Great East Japan Earthquake in March last year and sincerely pray for the earliest possible reconstruction of the affected areas.

Looking back on last year, large-scale disasters such as the great earthquake and the Thai flood occurred, causing significant damages to the Japanese industrial sector. In addition, unstable economic conditions have been continuing even now, including the debt crisis seen in European countries and the effect of the monetary tightening in China, as well as the prolonged appreciation of the yen. Thus, it has become increasingly crucial to deal with disasters and foreign exchange risks.

Against this backdrop, the NTN Group embarked on a new medium-term management plan, “Global Advance 2013,” covering a three year period since April last year. This is our first step to achieve our target of net sales of 1 trillion yen in fiscal 2017, when we celebrate our 100th anniversary. We aim to accelerate globalization through the concept of “on local site with local materials by local personnel”, thereby expanding business in growth markets and further strengthening a structure ensuring that we can supply high-quality products anywhere in the world.

Under the medium-term management plan, we will enhance our business structure globally. In Japan, we will increase our supply capacity for aftermarket, thereby strengthening cost competitiveness and diversifying risks. In China and other Asian economies, where demand is fast growing, we will expand sales channels and boost production capacity. Moreover, at NTN-SNR in France, we will push forward capacity increases of large bearings and precision bearings, leading to sales expansion in European countries and the supply of the products to Japan and other Asian regions.

In terms of globalization, it is vital to always see things from two sides. Of particular importance is to know not only views and perspectives of the people in the country but also those of the people in other countries. I believe that, most importantly, we foster “local personnel,” that is, people working there, by first learning well and respecting locality, history, culture, etc. in the country and the region.

We seek to thoroughly standardize and transfer to overseas a portion of “Monozukuri” (manufacturing) conducted at a mother plant in Japan, which should be communalized globally. Through these initiatives, products are produced using local materials and facilities. Besides, we will apply overseas the achievements of R&D activities in Japan and develop locally the products that meet the needs. Thus, the roles and responsibilities to be assumed in both Japan and foreign countries are more and more increasing. To ensure the application of overseas success examples to other regions, the local personnel as leader is indispensable.

Now that “Monozukuri” is facing a turning point, what is important is “quality.” In response, we will further strengthen the “development of human resources” and maintain the high quality of the NTN brand throughout the world in a bid to achieve our new growth.

Last year, bearing companies, including our company, underwent on-site inspections of the Japan Fair Trade Commission and the European Commission. We accept those inspections gravely and seriously and ensure again that all directors and employees raise awareness of compliance.

The zodiac animal of 2012 is “tatsu” (dragon). The term “tatsu” means breaking out of the past shell and moving toward innovation to head for a new ideal. That exactly depicts “ryu” (another expression of dragon) climbing into the sky vigorously.

We will take the harsh external environment as an opportunity to turn around, think hard toward achieving the target of the “Global Advance 2013,” and accelerate the strategy of “on local site with local materials by local personnel”. Through these efforts, we wish to move ahead like “ryu”.

I would like to conclude my New Year's message by sincerely hoping for good health for you and your family.

Other News:
Acceleration of a Strategy of “on Local Site with Local Materials by Local Personnel” from NTN
Wärtsilä to Supply New Design for State-of-the-art Pipe Laying Vessels Operating in Brazil
Indian Machine Tools Industry Upbeat on Demand Growth
The Carlyle Group Names Kazuhiro Yamada Co-head of Japan Buyout Group
SKF to Open Dedicated Marine Industry Service Centres
Welcoming Our New Agent in Spain to Join the UBC Family
ITAMCO Adds Large Grinder to its High-Performance Gear Capabilities
Haydon Kerk and Pittman Collaborate on Rotary Motion Solutions