NGK SPARK PLUG CO., LTD. Corporate Brochure E-2107 (1) D https://www.ngkntk.co.jp/english/ Issued July 2021 -Top Message- Corporate Philosophy Realizing drastic Realize our imagination. We continue to offer new ideas and new values. change beyond At NGK SPARK PLUG, we aim to contribute to people all over the world by linking people to technologies and delivering new values. As a truly global corporation, we want to build stronger ties not only with customers and the current way the residents of local communities, but also with local and global environments. We are always working to make our corporate philosophy and our commitments a reality. Three elements constitute our corporate philosophy. 1. Commitment With full use of the most suitable technology and our accumulated experience, we continue striving to offer new values to the peoples of Corporate Philosophy the world. 2 3 2. Management Policy We offer a working environment in which Management Action each one of us is encouraged to make full use Policy 1 Guideline of his or her personality and capabilities. With all our power we are dedicated to pursue Commitment Since its founding, the NGK SPARK PLUG Group has worked to evolve and improve management based on trust and confidence. products with a focus on spark plugs and sensors based on core ceramic technologies, building trust with customers while contributing to the development of society. 3. Action Guideline Ever onward! Always mindful of what is the best course, we swiftly put it into action. During an era in which the automotive industry is undergoing a once-in-a-century revolution, we plan to return to the spirit of challenge and innovation on which the company was founded so that we can resolve social issues even more effectively than in the past. To realize change beyond the current way, we must embrace the challenge of developing The Nittoku Way solutions and services that use technologies that transcend boundaries, rather than asking what ceramics can do. We aim to provide real value as a company that is indispensable to In the face of rapid environmental and social change, we will focus all resources on the world. addressing social issues while ensuring that all employees set their sights high. The Nittoku Way refers to a set of philosophies that We thank you in advance for your continued patronage and support for includes values that are shared by the entire NGK the NGK SPARK PLUG Group. SPARK PLUG Group, and the actions based on those philosophies, as well as the manner in which those Shinichi Odo Takeshi Kawai actions are carried out. Representative Director Chairman of the Board Representative Director President & Chief Operating Officer 01 02 The NGK SPARK PLUG Group Spark plug global market share around the World - Global Activity - Oxygen sensor global market share An increasingly global NGK SPARK PLUG Group and the results of its activities Number of overseas bases Ratio of overseas employees 46 *As of March 31, 2019, as estimated by. NGK SPARK PLUG. About 46% No1 Number of countries in which NGK SPARK PLUG products are sold Other Japan 3% 14% Overseas sales ratio South and North America Central America 28% About 140 5% Asia 25% Europe 86% 25% Sales by region Percentage of employees who have experience Sales of the entire NGK SPARK PLUG Group being seconded overseas Overall group operating profit ratio . % 427.5 billion yen 1*Generalist2 (Classified,1 Considered) only % Headquarters Manufacturing & Sales organization Sales organization 11.1 Technical center Holding company *Figures current as of March 31, 2021, unless otherwise noted. 03 04 Representative Products and Core Technologies - Products - Please visit our website for more information. Official NGK SPARK PLUG website: Technologies and products that solve social issues https://www.ngkntk.co.jp/english/ Spark plugs and exhaust gas oxygen sensors Our spark plugs were the first products of their As a core component of emissions treatment kind to be manufactured domestically in Japan. systems, oxygen sensors contribute to cleaner Today, we enjoy No. 1 market share worldwide. emissions and better fuel economy. We support Our proprietary ceramic technology delivers perfor- compliance with strict emissions regulations mance that can withstand the high temperature through proprietary technology that makes and pressure levels inside engines. In addition, our possible fast, accurate sensing despite the intense component technology development, technologies temperature variations and presence of exhaust for bonding different materials, evaluation tech- condensation in the automobile environment. nologies, and other innovations make possible exceptional ignitability and combustion efficiency. Our products also contribute to environmental protection by improving fuel economy. Electro-static chucks Oxygen concentrators Electro-static chucks, which use static electricity to Oxygen concentrators supply highly concentrated hold silicon wafers in place during semiconductor oxygen to patients suffering from chronic respira- manufacturing, are required to exhibit high levels tory failure who are undergoing home oxygen of durability and quality. We draw on proprietary therapy. They increase oxygen concentrations by manufacturing methods that use lamination removing the nitrogen in air. In addition to provid- technology to realize durability in harsh environ- ing energy efficiency and quiet operation, our ments, together with uniform temperature distri- products help improve patients’ quality of life by bution. These products contribute to improving the accommodating remote monitoring and enabling efficiency with which semiconductors, essential in patients to breathe oxygen at home. today’s IoT society, can be produced. 05 06 Representative Products and Core Technologies - Products - Please visit our website for more information. Official NGK SPARK PLUG website: Technologies and products that solve social issues https://www.ngkntk.co.jp/english/ Cutting tools Ultrasonic transducers Cutting tools are used to fabricate (cut) parts in Ultrasonic transducers leverage the characteristics manufacturing processes. We supply products that of materials in which the application of a voltage are specifically designed to accommodate the generates ultrasonic waves to produce minuscule respective characteristics of a broad range of vibrations, and are used in products like medical industries, including the automotive, aerospace, scalpels. These scalpels result in less blood loss and and medical sectors. Going forward, we will faster recovery than regular scalpels. Ultrasonic continue to develop new materials like BIDEMICS, scalpels incorporating our products are used by the a proprietary material that makes possible world’s top medical device manufacturers. In this super-high-speed cutting of heat-resistant alloys way, we support medical professionals worldwide. that are extremely difficult to machine. Semiconductor packages Actually, we’d like to brag a little! Custom products with advanced technologies The devices introduced here are representative of the products we have developed since our founding, together with additional products based on those technologies. Semiconductor packages are used as a protective But they only tell part of the NGK SPARK PLUG story. application for IC chips. Lamination technology using our proprietary manufacturing method Many of the products we deliver are custom- serves to transmit electric signals while safeguard- engineered to accommodate individual customers’ unique ing semiconductors from heat, moisture, and other specifications and requirements. Most of these products, potentially harmful conditions. These products are which we develop proprietarily, play a supporting role in expected to contribute to today’s IoT-driven society, which will grow in the future, and play a society without it being known that they were major role in a society based on next-generation manufactured by NGK SPARK PLUG. communications. 07 08 2040 Vision and the Long-Term Management Plan Long-Term Vision We aim to meet the challenge of going “beyond ceramics” and “exceeding the imagination” of society and ourselves, thereby changing “drastically beyond the current way” in 2040. We have created the “2030 Long-term Management Plan NITTOKU BX” by backcasting from the 2040 Vision. We regard 2030 as a milestone year to ensure we are on the right path heading into 2040. 2030 Long-Term Management Plan “NITTOKU Long-Term Back SHINKARON” 2020 Basic Policy 2030 Casting 2040 Current *NITTOKU BX Vision (2030 strategies and initiatives) Milestones Direction Shisei Shinjitsu Dokuritsu Jiei Shikai Keitei Soshi Kantetsu Doing your very best Self-reliance and self-assuredness Utilizing everyone’s unique skills Seeing things through to the end NITTOKU Way * NITTOKU BX: “Beyond ceramics, eXceeding imagination” Transformation of the Business Sales revenue composition Portfolio 750.0 billion yen (Forecast) 60% Non-ICE business Delivering new value in the face of an ever-changing future. We aim to decrease the proportion of ICE business 40% in our total sales revenue from the current 80% to 426.2 billion yen 40% while raising that of non-ICE business from 20% To meet large-scale global environmental changes, we too must change. 60% the current 20% to 60%, thereby transforming 40% ICE business 80% our business portfolio. As a first step, we will Creating an organization comprised of passionate individuals working decrease the ratio to 60% and increase the ratio 2020 2030 2040 (FY) to 40% for ICE