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EnvironmentalAction Report 2005

NTN corporation

NTN corporation Environmental Action Report 2005

Editorial LineCorporate Data

2 Message from the President3 NTN Environmental Policy

■ Environmental Management

5 Organizational Structure of Environmental Conser-vation and Initiatives

6 Results for Fiscal 2004 and Targets for Fiscal 20058 Business Activities and Environmental Hazard/

Environmental Accounting9 Actively Developing Products that are Eco-friendly

12 Environmental Management System14 Expansion of Our Environmental Management System15 Environmental Communications

■ Environmental Conservation Activities

17 To Prevent Global Warming18 Reduce Waste/Prevent Air, Ground and Water Pollution19 Promotion Activities to Protect Resources20 Activities to Reduce Environmental Impact of

Transportation21 TOPICS/Construction of NTN R&D Center22 Environmental Conservation Efforts at NTN

Operating Sites24 Environmental Conservation Efforts at NTN

Domestic Operating Sites31 Environmental Conservation Efforts at NTN

Overseas Operating Sites

37 Results of the NTN Environmental Action Report2004 Questionnaire

■ Sales by Region (Consolidated)

■ Trends in Net Sales andIncomes (Consolidated)

At NTN Group, we have been conducting ourbusiness activities with the concept “Coexist withthe environment” in all departments from thedevelopment and production of products todistribution and service. Since we issued our firstEnvironmental Action Report in 1999, we have usedthis report to disclose important information to allour stakeholders -- our investors, stockholders,suppliers and customers, subcontractors and thoseresiding near our plants. In this report, we willintroduce the environmental actions that the NTNGroup and its employees have taken as part of ourdaily business activities.

We refer to the Environmental Report Guidelines2003 issued by the Ministry of the Environment andfocused on the results of our activities for fiscal2004 (April 2004 thru March 2005). (*Some contentsare from after fiscal 2004) In addition, we took greateffort to give detailed accounts in terms that areeasy to understand. We hope that through thisreport, the proposition “Conserving the globalenvironment” will bring us (join us) together.

To promote better environmental activities, weawait your candid opinions and suggestions. Theopinions obtained through the attached question-naire will be used to improve our activities, there-fore we appreciate your cooperation.

June 2005

Contents

Editorial Line

Corporate Data

(As of March 31, 2005)

Corporate Name NTN corporation

Head Office 1-3-17 Kyomachibori, Nishi-ku, Osaka, 550-0003Japan

Phone: 81-6-6443-5001 (switchboard)

Date founded March 1918

Date incorporated March 1934

President Yasunobu Suzuki

Number of Employees 5,465 (NTN corporation) 12,788 (Consolidated)

Fiscal term March 31st

Capital ¥39.6 billion

Net Sales ¥292 billion (Consolidated: ¥388.3 billion)

Stock Listed on the first section of the Tokyo Stock

Exchange and the Osaka Securities Exchange

■ Total Assets and Shareholders’Equity (Consolidated)

■ Sales by Division (Consolidated)


Aiming to Coexist with the Global Environment

At the NTN Group, we ask ourselves what we can do as inhabitants of this planet-- and we understand the importance of taking action

1NTN corporation Environmental Action Report 2005


Message from the President

Environmental problems have become increasingly serious on a global levelsuch as global warming, increased pollution, and the depletion of resources.We must move beyond the framework of country, company and region and askourselves “what should we do to solve environmental problems?” and takeaction accordingly.

The bearings and constant velocity joints that the NTN Group provides areessentially “eco-friendly products” in that they reduce energy loss and improveefficiency and we are actively promoting the development of environmentallyresponsive products -- striving for compact size, low torque, high efficiency andlonger life. Additionally, for future environmental conservation, we are activelyintroducing wind and solar power generation systems with the understandingthat the utilization of natural energy is the key to conservation. Using ouroriginal technology, we are developing and commercializing “high performancebearings for wind power generators.”

With regards to the main items we set up the previous fiscal year (such asglobal warming prevention and the reduction of waste materials), we have metour environmental targets. For CO2 emission, at present, we have met thereduction targets of trade organizations (The Japan Bearing Industrial Associa-tion cooperating with the Japan Business Federation) and NTN’s voluntaryreduction targets. However with the issuance of the Kyoto Protocol this Febru-ary, further voluntary efforts are anticipated and we will set still higher targetsfor fiscal 2010 and work to reduce CO2 emission.

We at NTN are working to expand our environmental management fromdomestic to overseas and to include our suppliers. With regards to ISO14001,NTN Omaezaki Works (domestic), NTN-NIDEC (ZHEJIANG) CORP (China),and GUANGZHOU NTN-YULON DRIVETRAIN CO., LTD (China) have beennewly added giving us a total of 13 domestic operating sites and 12 overseasoperating sites with the certification. This fiscal year we aim to achieve the ISOcertification at one domestic site and one overseas site that recently startedoperations. Additionally, we have requested of environmental certification fromall our major suppliers and are working to expand this circle of environmentalmanagement. We support the certification process for suppliers with smalleroperations and in order to reduce the expense of these processes, NTN hassuggested a simpler certification level, “Eco Stage Introductory Level,” to beaccepted at the examining authority and we hope this will lead to an expansionin the acquisition of the certification.

The NTN Group has begun efforts with our midterm management plan “RapidAdvance 21” and through the “Monozukuri movement” we have promoted theefficient use of all production resources such as human resources, raw materi-als, and energy. At the NTN Mie Works, opened the previous fiscal year as amodel Monozukuri plant, we worked to make the production facilities morecompact and utilize natural energy and strove to reduce the environmentalimpact.

We have compiled these efforts into the “Environmental Action Report 2005.”We have incorporated the opinions and suggestions of our past readers andtried to make the layout easier to understand. We hope that you will take thetime to review this report. We invite our investors, stockholders, and suppliersand customers to submit their candid opinions and suggestions so that we canrefine our environmental conservation activities.

Yasunobu SuzukiPresident

NTN corporation

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NTN Environmental Policy

3

Basic ConceptAdvocating harmony with the global environment is our most important issue and we will makeconstant efforts to contribute to the harmonious development of society, while aiming to reduceenvironmental impacts and contribute to a recycling society.

Action GuidelineIn connection with its manufacture and sales of bearings, constant velocity joints and precisionequipment, the NTN Group will comply with the following guidelines, which state our commitmentto continuously reduce harm to the environment from our business activities, products andservices and to maintain a safe environment for the future.

1. NTN will contribute to world-wide energy conservation by developing and providing eco-consciousproducts using state-of-the-art high precision techniques and friction-reducing technology.

2. NTN not only will comply with the standards and requirements set forth in applicable governmentallaws and regulations but also with customers’ requirements and internal standards, which NTN willestablish as it deems necessary.

3. Beginning at the research, development, and design stages, NTN will endeavor to reduce harm tothe environment.

4. In its purchases of raw materials, parts, and equipment, NTN will take into account protection ofthe environment, preservation of resources and more efficient use of energy. In its production andsales activities, NTN will endeavor to reduce energy consumption and waste generation andpromote recycling.

5. NTN will endeavor to implement production methods and distribution systems that have lessenvironmental effect in terms of use of resources, energy, pollution, and waste.

6. NTN will conduct environmental audits and will endeavor to maintain and improve corporateenvironmental management systems.

7. NTN will cooperate in programs for environmental protection conducted by national and localgovernmental entities and will participate actively in regional environmental activities.

8. NTN will conduct environmental education and company-wide promotion activities. NTN willpromote improved awareness of this Environmental Policy and environmental protection to allpersons working for and on behalf of NTN Group.

Kenji OkadaManaging Director

Chief Environmental Management OfficerNTN corporation

April 1, 2005

NTN corporation Environmental Action Report 2005NTN corporation Environmental Action Report 20054

To Coexist with the Environment— Environmental Management —

At NTN, we aim to coexist with the global environment,and we strive to fulfill all legal standards and to achieve our voluntary targets.


At NTN, we have established the“NTN Environmental Policy” and allour business activities are basedon it. We have made continuousand coordinated efforts to reduceenvironmental hazards and our aimis to coexist with the global environ-ment.

Our environmental conservation

Organizational Structure of EnvironmentalConservation and Initiatives

Environmental Management

NTN Group’s Environmental Conservation Structure

■ Chronology of the NTN Group’s Environmental Conservation Initiatives

5

FiscalYear

activities started in 1993 with theestablishment of the EnvironmentalConservation Committee in alldepartments (including the headoffice, R&D, manufacturing, salesand logistics). This committee waslater renamed the EnvironmentalManagement Committee andpromotes efforts in environmental

conservation. The EnvironmentalManagement Department is thehead office for environmentalconservation activities for the entirecompany and the EnvironmentalManagement Division* at each siteplays a central role in the activities ofthat location.

* At some sites, the Management Section or the GeneralAdministration Office is in charge of this operation.

Details of Efforts New laws, International treaties established

■ Environmental Conservation Committee established 1993 ■ The Basic Environment Law is established

■ 1,1,1-Trichloroethane phased out 1994 ■ The Basic Environment Plan is settled

■ CFC113 phased out 1995 ■ Containers and Packaging Recycling Law is established

■ Iwata Works begins preparations to acquire ISO140011996

■ ISO14001, JISQ14001 establishedcertification

■ Environmental Management Guide established 1997 ■ The Kyoto Protocol is adopted

■ Changed the Environmental Conservation Committee to ■ Legislation established for the promotion of global warmingthe Environmental Management Committee 1998 countermeasures

■ Iwata Works acquires ISO14001 certification

■ A total of 13 operating sites acquired ISO14001 certification (multi-site) ■ Law Concerning Special Measure against Dioxins established

■ Issued first edition of NTN Environmental Action Report 1999 ■ PRTR Law established

■ Development of ECO series product

■ Trichloroethylene phased out ■ The Basic Law to promote the creation of a recycling society

■ Disclosed Environmental Accounting 2000 ■ Law on promoting green purchasing established

■ Iwata Works transferred to ISO14001 (multi-site)

■ Dichloromethane phased out2001

■ Law Concerning Special Measures against PCB Waste issued

■ PRTR Law Countermeasures (database) ■ Law for Promotion of Effective Utilization of Resources established

■ Zero emission targets established ■ Soil Contamination Countermeasures Law established

■ Respond to EU’s End-of-Life Vehicles Directive2002

■ Automobile Recycling Law established

■ Start manufacture and distribution of grinding swarfbriquetting machine

■ Achieved zero emission for all domestic operating sites2003

■ Revision of the Waste Disposal and Public Cleaning Law

■ Incorporated NTN Casting into ISO14001 (multi-site) ■ Implementation of Soil Contamination Countermeasures Law

■ Incorporated NTN Omaezaki Works into ISO14001 (multi-site) ■ Kyoto Protocol was put into effect

■ Completed cleanup of polluted ground at old operating sites 2004 ■ ISO14001 revised(Kishiwada and Kawachi Nagano, Osaka) ■ Implementation of Automobile Recycling Law



Results for Fiscal 2004 and Targets for Fiscal 2005

Results for Fiscal 2004

As our environmental goal forfiscal 2004, NTN upheld 13 con-crete targets (domestic: 11 items,overseas: 2 items) in three catego-ries: “Conservation of globalenvironment,” “Contribution to arecycling society,” and “Mainte-nance and improvement of environ-mental management system.” As a

result, we were able to meet ourtargets for 11 items, such as thereduction of CO2 and maintainingzero emission (domestic).

Concerning the promotion of zeroemission, we were able to maintaina high standard of 99% in Japan,but for overseas, which we addedto our target last year, we wereunable to achieve zero emission. Inthe future, we will promote activi-ties to improve various forms ofrecycling overseas.

In addition, with regards to theconservation of resources such aswith packing materials and recover-able resources (Styrofoam, card-board, paper, etc.), we have met allour number targets. Our voluntarytarget of phasing out coolants thatcontain chlorine is not a legalrestriction, and we were unable tomeet our target. We will continue towork towards an early phase out ofchlorine in coolants.

6

Objective Target for Fiscal 2004 Result for Fiscal 2004 Evaluation*1) Page

Conservation of Reduce CO2 Domestic • CO2 emission rate:*2) • CO2 emission rate:Global Environment emission 17% reduction relative to fiscal 1997 18% reduction relative to fiscal 1997

P17Overseas • CO2 emission rate: • CO2 emission rate:

2% reduction relative to fiscal 2002 4% reduction relative to fiscal 2002

Prevent air, water Domestic • Number of halon extinguishers • Number of halon extinguishersand ground pollution replaced with carbon dioxide replaced with carbon dioxide P18

extinguishers: 175 units or more extinguishers: 198 units or more

Domestic • Complete phase out of coolants • Number of switches from coolantsthat contain chlorine containing chlorine: 3 (2 switches left)

P18

Domestic • Complete decontamination of the • Decontamination of the two closedP19two closed operation sites operation sites completed

Create Recycling Reduce waste Domestic • Promote zero emission: • Promote zero emission:society recycle rate 98% or more*3) recycle rate 99%

P18Overseas • Promote zero emission: • Promote zero emission:

recycle rate 94% or more recycle rate 87%

Protect resources Domestic • Styrofoam: • Styrofoam:P1975% reduction relative to fiscal 1999 79% reduction relative to fiscal 1999

Domestic • Use of cardboard boxes: • Use of cardboard boxes:18% reduction relative to fiscal 1998 19% reduction relative to fiscal 1998

Domestic • Paper consumption: • Paper consumption:P2020% reduction relative to fiscal 1998 23% reduction relative to fiscal 1998

Domestic • Paper recycle rate: • Paper recycle rate: 143%maintain 100% or more

Promote green Domestic • Switching from various controlled • Promoting switchover from phthalateP13procurement substances esters

Promote environment Domestic • Support the acquisition of ISO14001 • Held EMS establishment seminarsmanagement of the and Eco Stage for suppliers • Started certification support for Eco P14supply chain Stage Introductory Level as a trial

activity

Maintain and improveenvironmentalmanagement structure

*2) CO2 emission rate (ton/million yen) =CO2 emission (ton)

Sales added value amount (million yen)*1) Symbols for evaluation: achieved/promoted, not achieved　 1 — X 100*3) Recycling percentage (%) =

Final amount disposed of by landfill (tons)

Total amount discharged (tons)


Environmental Targetfor Fiscal 2005

The environmental targets forfiscal 2005 were based on theefforts and results of fiscal 2004.This year’s targets also includedconcrete items to further reduceenvironmental hazard.

For “Conservation of globalenvironment,” we are working toreduce environmental hazards by

promoting activities such as CO2

emission reduction and develop-ment of eco-friendly products.Additionally, we have expanded theregional environmental preserva-tion activities at Iwata Works andstarted participating in localgreening activities on a corporatelevel.

For “Create a recycling society,”we continued our efforts to main-tain zero emission in Japan andexpanded use of the grinding swarf

briquetting machine to overseassites in order to promote zeroemission.

For “Maintaining and improvingthe environmental managementsystem,” we enhanced our environ-mental hazardous substancemanagement system and promotedvoluntary elimination to improvegreen procurement.

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Objective Target for Fiscal 2005 Target for Fiscal 2010

Conservation of the Reduce CO2 emission Domestic • CO2 emission rate: 20% reduction relative • CO2 emission rate:global environment to fiscal 1997 25% reduction relative to fiscal 1997

• Energy conservation diagnosis andimprovements for major Works

Overseas • CO2 emission rate: • CO2 emission rate:2% reduction relative to fiscal 2004 10% reduction relative to fiscal 2002

Prevent air, water and Domestic • Number of halon extinguishers replaced with • Phasing out of halon extinguishersground pollution carbon dioxide extinguishers: 115 units or more

Domestic • Elimination of coolants with chlorine:phase out (2 remaining)

Domestic • Response to Soil ContaminationCountermeasures Law

Promote the develop- Domestic • Sales amount for eco-friendly products: • Sales amount for eco-friendly products:ment of eco-friendly +10% relative to fiscal 2004 +60% relative to fiscal 2004products

Participation in Regional Domestic • Participation in regional green activitiesEnvironmentalPreservation Activities

Create a Recycling Reduce waste Domestic • Promote zero emission: • Continue Zero emissionsociety materials recycle rate 98% or more

Overseas • Promote zero emission: • Promote zero emission:recycle rate 94% or more recycle rate 98% or more (target for fiscal 2006)

Protect resources Domestic • Styrofoam: • Complete phase out of Styrofoam84% reduction relative to fiscal 1999

Domestic • Paper consumption: • Paper consumption:28% reduction relative to fiscal 1998 50% reduction relative to fiscal 1998

Maintain and improve Promote green Domestic • Establish environmental hazardous substanceenvironmental procurement management structuremanagement structure • Establish green procurement policy

• Respond to customers’ audits• Promote elimination of phthalate esters

Promote ISO14001 Domestic • Acquired the certification for NTN Mie WorksMulti-Site Certification

Promote environment Domestic • Support suppliers’ acquisition of ISO14001management of the and otherssupply chain

Respond to new laws Domestic • Respond to ISO14001 (2004 version)• Respond to revised Energy Conservation Law• Respond to VOC emission control


Business Activities andEnvironmental Hazard

● INPUT and OUTPUT inManufacturing

For fiscal 2004, the productionamount (INPUT) for NTN as a wholeincreased 12% in relation to theprevious year. However, as a resultof energy conservation measuresand efforts towards zero emission,we were able to keep CO2 emission(OUTPUT) down to a 9% increase.

environmental equipment andenvironmental preservation was¥4,376 million. The financial effect ofenvironmental preservation activitiesexceeded that of the previous year at¥356 million.

● Increased economic effectthrough environmentalaccounting

In NTN’s environmental accountingfor fiscal 2004, the total cost for

EnvironmentalAccounting

Business Activities and Environmental Hazard/Environmental Accounting


■ Financial effect of environmentalpreservation activities

■ Environmental preservation costs

Indicator Result (for fiscal 2004)

CO2 emission rate 18% reduction relative to fiscal 1997

Reduction of waste Recycle rate 99%

Reduction in cardboard boxpurchase factor

19% reduction relative to fiscal 1998

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EnvironmentalPreservation Costs

EnvironmentalEquipment Investment

　

Items Amount

Cost reductions through resource conservation 71

Cost reductions through energy conservation 149

Cost reductions of waste treatment through the recycling 136

Grand total 356

(Reference) Grand total for previous year 320

　Unit: million yen / year

Classification of Environmental Preservation Costs

1) Cost of in-factory facilities Pollution prevention costs 46 138

(Environmental preservation cost for inhibiting environmental Global environmental preservation expenses 207 144hazards caused by business activities)

Resource recycling expenses 41 507

2) Upstream/downstream expenses (Environmental preservation cost for inhibiting environmental hazardcaused upstream and downstream from the business activities)

0 11

3) Management activity expenses (Environmental preservation cost for management activities) 0 217

4) R&D expenses (Environmental preservation cost for R&D) 681 2,315

5) Social activity expenses (Environmental preservation cost for social activities) 0 24

6) Environmental remediation expenses (Cost for environmental remediation) 0 45

Grand total 975 3,401

(Reference) Grand total for previous year 2,086 3,482

Unit: million yen / year

■ Impact of environmental preservation


Color filters are made up of four colors, R(red), G (green), B (blue) and BK (black) andeach pixel of RGB is lined up regularly and theborder of each color is separated with BK.

*1) Black defects: when BK is mixed in R, Gand B pixels turning it black, or when othercolors are mixed.

*2) White defects: when a pixel is not colored.

*3) Particle defects: when the colored part ofthe pixel sticks out of the surface or whena foreign particle is attached and stickingout.

ing of the type of defect. Because ofissues such as investment costs,installation area and correction timewhen using several different types ofequipment, the appearance ofequipment that could correct alltypes of defects was greatly antici-pated.

Under these circumstances, NTNdeveloped and commercialized amulti-repair system that can correctthe three major defect types of colorfilters by fusing NTN’s “Ink coatingtechnology” and “Laser cuttingtechnology” with Takano’s “Tapepolishing technology”.

We were awarded the Grand Prizein the test/repair category of the“Advanced Display of the YearAwards 2004”*4) in recognition of thisoutstanding function.

9th Advanced Display of the Year 2004

NTN has developed a multi-repairsystem that reduces the failure rate(number rejected) by automaticallycorrecting minute defects in the LCDcolor filter used in LCD screens oftelevision sets and personal comput-ers (joint development with TakanoCo., Ltd.).

The size of Color filter boards usedin devices such as LCD televisionsets is getting larger and larger andthe demand for LCD television setsis growing and there is an increasingneed for defect correction equip-ment to reduce the failure rate ofLCD color filters. There are threemajor types of defects in LCD colorfilters, “black defect,”*1) “whitedefect,”*2) and “particle defect”*3) andthus far there was no single solutionto correct all defect types so it wasnecessary to combine the use ofseveral types of equipment depend-

*4) An award given to exceptional products outof all the new flat panel display relatedproducts (screen display devices such asLCDs and plasma) released in fiscal 2003.


Actively Developing Products that are Eco-friendly

9

Example of the correction of whitedefect using ink coating

Coat coloringForeign particle Remove foreignparticle with laser

Significantly Improved Yield Rate“Multi-Repair System for LCD Color Filters”

— NTN Is Everywhere You Look —


Actively Developing Products that are Eco-friendlyEnvironmental Management

Constant velocity joints convey theengine’s power to the wheels. Throughoptimal design using computer analysis,we were able to improve vibrationcharacteristics which affect the ridequality (NVH performance) of theautomobile (50% reduction in vibrationvalue relative to conventional CVJs) andat the same time made it lightweight(8% reduction relative to conventionalCVJs), and compact (4% reduction inoverall size relative to conventionalCVJs).

● Lightweight compact constant velocity joint “EPTJ”● Ball screws for mechanicalautomatic transmissionelectromotiveactuator

Compact &lightweight

Improvedfuel-efficiency

World’s lowest vibration and lightweight & compact

Development ofEnvironmentallyResponsive Products

Bearings are essentially “eco-friendly products” because they reduce frictionand energy loss. At NTN, we are actively promoting the development of“Environmentally Responsive Products” that are at the top of eco-performancewith compact size, low torque, high efficiency and longer life and contributing tothe reduction of global environmental hazards.

For car air conditionercompressors

For automatic transmissions

In recent years, the lubricationconditions for automobile bearingshave become increasingly severeand there is a greater need forbearings with longer life. Through thedouble alignment of rollers and theoptimization of the roller shape, wehave achieved longer life, lowertorque, and lower noise. Thiscontributes to resource and energyconservation.

Attained longer life and lower torque for bearing by making therollers double row

10 NTN corporation Environmental Action Report 2005

Long life,low torque

Improved fuel-efficiency inmechanical automatictransmission vehicles andoperating performance

We began the commercial produc-tion of ball screws for electromotiveactuators for gear switching inmechanical automatic transmissioninstalled in trucks. The electromotivetypes allow for a simpler structurethan conventional types (air andhydraulic) and by using NTN ballscrews we were able to reduce drivetrain loss significantly and improvethe fuel-efficiency of the automobile.

We are currently developing ballscrew units for electromotive actua-tor of control devices surrounding thebrakes and engine, and so on.

● “Double row thrust needle roller bearing” for carair conditioning and A/T transmission


● New Series of Spherical RollerBearings“S-TITAN TM”

● “RustGuard TM” Improved corrosion-resistance inbearings for steel mill machinery

Spherical roller bearings arebearings with barrel shaped rollersthat are self-aligning and used invarious industrial machines. Byadopting long-life, high-temperaturesteel for S-TITAN, we were able toincrease life by a factor of 30 at atemperature of 200°C and improveload carrying capability by 50%compared with conventional bear-ings.

Long life

NTN attained longer life forbearings used in steel mill machineryused in harsh environments -- suchas exposure to excessive water orscales (iron powder). We use specialheat treatment and improvedresistance to rolling fatigue whileimproving corrosion-resistancesignificantly by applying NTN’sproprietary manganese phosphatecoating.

Improved corrosion-resistance and realized 3.5 times longer liferelative to conventional goods

● Wing turbine bearing High-performance

Used in the nacelle (the section where the power generator, accelerator, andbrakes are stored) of wind power generators, this technology encourages theuse of natural energy. Spherical roller bearings are used for the main shaft,angular contact ball bearings for reducers, cylindrical roller bearings for accel-erators, and insulated bearings for power generators (MEGAOHM® series).

Proprietary technology incorporated into high-performancebearings


Long life

Reducer Step-up gear

Power generatorMain spindle

Adapt long-life steel andoptimal design toproductworld’s longest life andhighest dynamic load rating


Environmental Management System

Receiving ISO14001 Periodic Maintenance Evaluation

Customer’s certificates


Comprehensive Auditing System

At NTN Group, we have anenvironmental audit system so thatour environmental managementstructure functions properly. Weconduct both “reviews by externalorganizations” and “internal audits atoperation sites” and starting fromfiscal 2004 we have “cross auditing”in which operating sites audit eachother.

● ISO14001 PeriodicMaintenance Evaluation

The domestic NTN Group operat-ing sites have completed theacquisition of multi-site ISO14001certification.

At the maintenance evaluationconducted last November, NTNOmaezaki Works received itscertification and was incorporatedinto the NTN Group multi-sitecertification.

● Customers’ EnvironmentalAuditing

We underwent environmentalaudits by two of our customers infiscal 2004. NTN’s environmentalmanagement structure received highratings and we received accredita-tion as a supplier.

Present State of ISO14001 Certifications

GUANGZHOU NTN-YULONDRIVETRAIN CO., LTD.ISO14001 Certificate

NTN-NIDEC (ZHEJIANG) CORPISO14001 Certificate

In 1999, NTN acquired multi-siteISO14001 certification for 11domestic operating sites (headquar-ters, 5 plants and 5 affiliates) and weare working to expand this circle.

In 2004, NTN Omaezaki Works(domestic), NTN-NIDEC (ZHEJIANG)CORP (China), and GUANGZHOUNTN-YULON DRIVETRAIN CO., LTD.(China) acquired certification.

For details on the location and

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certification of our domesticand overseas operatingsites, please refer to pages22 to 36.


Major Qualifications

Energy Management Qualified electrical energy manager 17Qualifications Qualified thermal energy manager 19

Pollution Prevention Manager Air (categories 1–4) 28

Water (categories 1–4) 47

Noise 22

Vibration 17

High-pressure Gas Refrigerating equipment categories 2, 3 11Manufacturing and Categories A and B Chemical 12Security Manager

Category C Chemical/liquefied petroleum gas 76

Category C Chemical/special test items 47

Category B Machinery 2

Chief Electrical Engineer Categories 1, 2 6

Category 3 44

Environmental Measurement Analyzer 5

Working Environment Measurement Expert (Type 1, Type 2) 2

Manager of Specially Controlled Industrial Waste 23

Manager of intermediate treatment facility for industrial waste 5

Manager of poisonous and harmful substances 15

Assistant Auditor for ISO14001 Specification 3

Total 401

● NTN employees withqualifications

At NTN, in order to deal with thelegal requirements, we are promotingthe acquisition of various qualifica-tions.

(As of March 31, 2005)

Newspaper article on the elimination of phthalate ester(March 3, 2005 Nikkei Sangyo Shinbun)

Rubber seals and boots for CVJ that arephthalate ester switchover targets

Lead-free grease for CVJ

● Compliance withRegulations and VoluntaryMeasures

For the “ELV directive,”*1) whichtargets automobiles, and the “RoHSdirective,”*2) which targets electricand electronic devices, we haveswitched all bearing parts to thosethat do not contain toxic substances(starting in October 2003). Forautomobile CVJs, we have proposedreplacement materials (lead-freegrease) to our users from March2003 and realized complete phaseout of toxic substances.

At present, we are promoting thecomplete phase out of phthalate

Compliance with Legal Requirements

ester*3), which was newly added toCMR substances*4) targeted by EUrestrictions. This is a chemicalsubstance that is used as an additivein rubber seals and boots for CVJsand we are promoting a switch toreplacement materials in preparationfor complete phase out by the end of2007 (NTN voluntary target).

At NTN, we not only comply withlegal requirements but also activelyset voluntary targets and phase-outsahead of other companies for anysubstance with a heavy environmen-tal hazard or that are suspected ofbeing toxic.

*1) targets of the ELV directive (End of LifeVehicles): lead, mercury, cadmium, andhexavalent chromium.

*2) targets of the RoHS directive (Restriction ofthe use of certain Hazardous Substance inelectrical and electronic equipment): thesubstances above + brominated flameretardants

*3) Phthalate esters: a type of organic chemicalthat is partially restricted by the EU directive(2003/36/EC) for suspicions raised abouthuman toxicity.

*4) CMR substances: substances that areconsidered to be C (carcinogenic), M(mutagenic) or R (Toxic to Reproduction).

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Number of Employeeswith Qualification


Expansion of Our Environmental Management SystemEnvironmental Management

Supporting Environmental Management SystemCertifications

At NTN, in efforts to expand ourenvironmental management systemto include our suppliers, we haveasked our major suppliers to acquireEnvironmental Management SystemCertifications (ISO14001 or privatecertification such as Eco Stage*1))and at the same time we haveprovided support for these certifica-tions through the NTN TechnicalService*2). These efforts are the firstof their kind in the bearing industryand about 50% of our major suppli-ers have acquired certification.

Through these efforts we havereconfirmed the importance of takingthe first step in environmentalmanagement and the reality that it is

*1) A consumer specification of the Eco StageInstitute (Limited Responsible Intermediate)

*2) A wholly owned subsidiary of NTN. It con-ducts support activities such as certificationconsulting as an Eco Stage certification au-thority.

Environmental Management System Seminar

difficult for small companies to takethe first step because the cost is toohigh. With this in mind we ap-proached the Eco Stage Instituteand advocated the need for asimpler certification level and as aresult the “Eco Stage Introductorylevel” that we proposed was intro-duced last year as a trial certificationlevel.

In the future, by accruing cases ofNTN’s support activities, it is ex-pected that this will be approved asan official certification level. Webelieve that this will contribute toenvironmental management effortsnot only at our suppliers but at smallcompanies nationwide.

Starting from the previous fiscalyear, we established the “NTNEnvironmental Award” and awardedsuppliers and operating sites thathave achieved significant resultsfrom exceptional environmentalactivities. The suppliers thatreceived awards were Komori SeikiCo., Ltd., which acquiredISO14001 certification in a shortperiod of time, and three compa-nies that received the Eco StageLevel 1 -- Koide Ironworks Co.,

Ltd., Goto Chemical Co., Ltd., andMatsumura Ironworks Co., Ltd.

In addition, three operating siteswere presented the award includingIwata Works, which was activelyinvolved in greening activities.

We will continue to present theNTN Environmental Award toexceptional environmental efforts inhope of raising awareness about theenvironment and improving the levelof our environmental conservationactivities.

The newly-established NTN Environmental Award

1st NTN Environmental Award Ceremony

Environmental Information-sharing Meetings with Denso Corp.

Last November, Denso Corp.(Daian Plant) and NTN (KuwanaWorks) held an environmentalinformation-sharing meeting. Weshared valuable information relatedto the theme of energy conservationby presenting examples of our effortsonsite and introducing new equip-ment.

Demand Control System that conducts central-ized control of air conditioning packages

NTN presented examples ofenergy conservation through the useof demand control (collectivemanagement system) to conductcentralized control of air conditioningpackages and the effects of thegrinding swarf briquetting machine.There was a vigorous exchange ofideas and we have continuedcommunication since then.

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Environmental Communications

At the NTN Group, to let all of ourstakeholders know our environmen-tal activities, we conduct variouspress activities such as issuing anEnvironmental Action Report andmaintaining a website.

Additionally, we have a page forenvironmental issues in our com-pany newsletter with the basicinformation we would like ouremployees to understand, such asthe contents of the EU Directive toregulate toxic substances and ourcountermeasures, written in easy tounderstand terms so that each ofour employees understands thebackground and importance of ourenvironmental activities.

● Created Poster to HeightenEnvironmental Consciousness

At NTN Transmissions Europe(France), we created a poster thatpresented our targets based on ourenvironmental policy in a beautiful visualformat and worked to familiarize ouremployees with our targets. Specifically,we listed our number targets for thereduction ofelectricity, gasand water useand industrialwaste anddeclared that“the entirecompany willstrive togetherto meet ourtargets.”

● Water Quality ConservationActivities in the Kamiina Area

The Kamiina area, where theNagano Works is located, is rich withnatutral features such as the TenryuRiver system, and the conservationof the river’s water quality is animportant issue for the local commu-nity.


● “Monozukuri” SupportActivities at Unsiversities

At NTN, we support “Monozukuri”activities of students in universityclubs related to motor sports.

Not only do we provide ourcompany’s automobile productssuch as bearings and constantvelocity joints free of cost, but wealso provide technical advice andhave provided support at a total of14 universities.

At the “2nd Student Formula SAECompetition of Japan” held inTochigi, last August and September,12 of those universities participatedand the Shibaura Institute of Tech-nology team (a team supported byNTN) came in fourth place.

● Iwata Works RegionalGreening Activities

At Iwata Works, we are conductinggreening activities such as improvingthe local woodlands. In fiscal 2004,160 people, including 100 employeesand their families and the localvolunteer group “Green YouthGroup,” took part in the planting of450 azaleas in the woodlands nearIwata city and built and installed 6

Planting Azaleas

“Tenryu River Checkup”

Award

Nagoya Institute of Technology Racing Car

At Nagano Works, 24 employeesand their families took part in the“Tenryu River Picnic,” a riversideclean up activity supported by about90 local companies. Additionally, wemonitored the water quality of TenryuRiver and cooperated 24 hours a dayin the “Tenryu River Checkup,” thewater quality measurement con-ducted around the clock as a jointeffort of the community to improvethe water quality.

These river beautification efforts bythe local community in the TenryuRiver area were awarded the “JapanWater Award” encouragement prizein 2004 in acknowledgement of ourcontribution to the restoration of ahealthy water cycle.

EnvironmentalEducation and SocialContribution

At NTN, we are committed toeducating our employees and theirfamilies about the environment. Bybeing actively involved in localbeautification efforts and plantingactivities, we hope to raise environ-mental awareness in the NTN Groupas a whole while at the same timecontributing to the local communities.

benches made from thinned wood.Through a 3-year greening project,we were able to plant our target of1,000 azaleas and install a total of 11benches.

15

NTN Group Newsletter

EnvironmentalCommunication Tools

NTN corporation Environmental Action Report 200516 NTN corporation Environmental Action Report 2005

To Coexist— Environmental Conservation Activities —

At NTN, we aim to coexist with the global environment.We work with our communities to protect the earth’s rich natural features,

blessed land, and beautiful water.


To Prevent Global WarmingEnvironmental Conservation Activities

*) CO2 emission rate (ton/million yen) =CO2 emission (ton)

Sales added value amount (million yen)

In fiscal 2004, for the CO2 emis-sion rate*), we achieved 18%reduction, surpassing our target of17% reduction (relative to fiscal1997). However, the Kyoto Protocolwas brought into effect this February,raising expectations for morevoluntary efforts and we will continueto make efforts to reduce CO2, bysetting more aggressive targets(fiscal 2005 goal: 20% reduction).

Major energy conservationmeasures for the previous yearinclude efficient use of electricity andexhaust heat through co-generation,use of engine compressors duringsummer months when the energydemand is at its peak and energyconversion from heat treatmentfurnaces.

Surpassed CO2 Reduction Targets

■ NTN’s CO2 emission by Energy Source

■ Energy Consumption (Yearly)

Electricity 512,492,000 kWh

PetroleumHeavy oil A 3,519 kl

Kerosene 4,245 kl

GasButane/propane 7,305 t

Natural gas 3,217 km3

Co-generation facilities(NTN Powder Metal Corporation)

Control equipment installed in outdoorair conditioning units (3 unit group)

Computer for central control

Solar power generation panels

Wind power generator

Major Energy Conservation Measures

● Constructed Up-to-dateEnergy Saving Plant

NTN has completed the construc-tion of the Mie Works as an up-to-date plant with reduced environmen-tal hazard. At this plant, we areimproving productivity through the“Monozukuri” movement and we areactively utilizing natural energy byintroducing wind and solar powergeneration.

● Introduction ofCo-generation facilities

In the past, the NTN Group hasintroduced co-generation facilities atfour operating sites. The powergenerated is used onsite and byutilizing heat exhaust, we are able toreduce CO2 emission.

At Iwata Works, we introduced theMebius Link System that conductscentralized control of air conditioningcompressors and were able toreduce CO2 emission from excessivecooling.

This system conducts centralizedcontrol of several compressors in thebuilding using computers. Randomlyselected compressors are switchedoff for several minutes during a givenperiod of time and air conditioning isswitched to fan and as a result wewere able to maintain a comfortableroom temperature while reducingenergy consumption.

17

● Reduced Electricity Coststhrough the Mebius Link System

■ Annual trends in CO2 emission rate

NTN Mie Works


Reduce Waste/Prevent Air, Ground and Water Pollution

● Efforts to phase outcoolants containingchlorine

At NTN, starting in fiscal 2000, weset a voluntary target to completelyphase out coolants containingchlorine and have worked to meetthis target. This is not an item that islegally restricted, but because thereis a possibility that toxic dioxins aregenerated during the processing ofsolid residue and waste fluids, NTNhas been unique in dealing with thisitem.

Last year, we were able to switchout three (of our target of completephase out), and we will phase outthe remaining two to complete phaseout during fiscal 2005.

● New release of ultracompact grinding swarfbriquetting machine

NTN released an ultra compactgrinding swarf briquetting machine(GSB-15S) that has an installationarea that is 40% of the conventionalequipment. By meeting our custom-

ers’ needs such as price,processing power andinstallation area, we are

able to compete withconventional equip-ment.

Environmental Conservation Activities

Efforts to Prevent Air Pollution

■ Number of halon extinguishers remaining● Going forward with our planto completely phase outhalon extinguishers

At NTN, we are working to switchextinguishers to those that do notuse halon, an ozone-depletingsubstance, by fiscal 2010. In fiscal2004, we switched 198 unitscompared to our target of 175. Thismeans we are progressing ahead ofour plan.

At NTN, we defined “zero emis-sion” as a recycle rate of 98% ormore and we have promoted effortsin waste reduction. Last year, of theten domestic operating sites wherewe set zero emission as a target, wewere able to realize zero emission atall the sites. However, we were notable to achieve zero emission at NTNCasting, where ISO14001 certifica-tion was acquired the previous year.We are working to improve ourrecycle rate by utilizing waste slagand waste sand discharged from thecasting process as base coursematerial.

Concerning the achievement ofzero emission at each operating site,

■ Recycle rate and amount of landfill treatmentthe effect of introducing the grindingswarf briquetting machine wasespecially significant and we wereable to recycle grinding swarf thatwould otherwise have ended up inlandfill treatment. This is because theswarf that was briquetted with thisequipment is recycled and used asraw material (made into a valuableresource) at steel manufacturers andthe recovered grinding coolants arealso reused in the process. Withregards to cost, we were also able tosignificantly reduce waste treatmentcosts for landfills and such.

In fiscal 2005, we will activelyadvance our efforts to maintain andachieve zero emission and spreadour efforts to our overseas sites andsuppliers.

18

Reduce Waste


Minor contamination with volatileorganic compound was found at twoclosed NTN operating sites, and as aresult of a voluntary effort to decon-taminate the ground, we were able tocompletely decontaminate the siteslast fiscal year.

The targets were old operatingsites located in Kishiwada andKawachi Nagano in Osaka and weused the Kimitsu method*) to con-duct a detailed investigation into thecontamination and to decontaminatethe ground. Before beginning ourinvestigation and decontamination,we held a briefing session for thelocal residents and supervisoryauthorities, got their consent andworked to provide information on thedecontamination process in a timelymanner.

As a result, the decontaminationwas completed in Kishiwada inAugust 2004 and in Kawachi Naganothis January, and we have receivedformal approval of a completedecontamination from the supervi-sory authorities. We also releasedthis result to the residents and gottheir understanding.


Efforts to completelydecontaminate ground

● Reduction of the use ofStyrofoam

Last year we reached a 79%reduction (compared with ourlongterm target of 75%) comparedto fiscal 1999.

Some of our major measuresinclude the use of alternativematerials such as “Oka Pack” whichis made out of soy pomace andrecycling/reusing Styrofoam.

■ Trends in Amount of Styrofoam used

Promotion Activities to Protect Resources

Reduction of packingmaterials

“Oka Pack”

Ground gas investigation

Ground water remediation equipment

Ground water analysis

Concerning the discovery of minorvolatile organic compound contami-nation during our periodic inspectionof the groundwater at KuwanaWorks, in compliance with theordinance of Mie Prefecture, we heldbriefing sessions for the local resi-dents’ associations and placed anannouncement in the newspapers.We then conducted an investigationof the groundwater and the extent ofcontamination and we are nowconducting decontamination bydrawing water from the wells andutilizing activated carbon absorption.

In addition, as a result of conduct-ing detailed investigation of theextent of contamination within theentire site, we discovered threelocations (including the one men-tioned above) with the same minorcontamination. We will start decon-tamination work using the Kimitsumethod and expect to completedecontamination by the latter part of2006.

19

1

*) This is a method in which completedecontamination can be done efficiently bypinpointing the contaminated area throughdetailed investigation and contaminationstudies and decontamination can beconducted while operating. We plan onusing this method for the decontaminationwork at Kuwana Works.


● Reduction in cardboardbox usage

We achieved a 20% reductioncompared to our target of an 18%reduction in the amount of card-board boxes used relative to fiscal1998. Some of our major measuresare the promotion of the use of“reusable containers” with customersand reduction of the weight ofcardboard boxes. In fiscal 2005, wewill continue to work to reduce ourconsumption of cardboard boxes.

2


Promotion Activities to Protect Resources

Wind power generator Light-emitting diode exterior wall sign

Shimane

Okayama

Kobe

Osaka

KuwanaNagoya

Nagano

Iwata

*) Weight of shipped load (t) times the shippingdistance (km)

■ Reduction of cardboard boxes ● Reduced paperconsumption

As a result of conservationmeasures such as using both sidesof photocopy paper, aspiring to a“paperless office” by using comput-ers, and reducing the amountprinted, we achieved a 23% reduc-tion compared to our target of 20%reduction in paper consumptioncompared to fiscal 1998.

■ Annual trends in paper consumption

3

Opened reusable container

Reusable containers packaging style

Activities to Reduce Environmental Impact of TransportationEnvironmental Conservation Activities

New ExportDistribution Center

Aiming for environmentalhazard reduction andstreamlined logistics

The new “Export DistributionCenter” that was completed inKuwana, Mie in May 2005, takesadvantage of its convenient locationnear the Port of Nagoya, the ship-ping port, and production plants tostreamline logistics for our companyas a whole. NTN has improvedlogistics efficiency by 22% on a ton-kilometer base (t-km)*) for domesticshipments.

Additionally, in order to reduceenvironmental hazards, we installedan output 10kW vertical axis windpower generator (SVAT WingTurbine) at the plant site and use it topower the lighting within the center.We also adopted low power con-sumption light-emitting diodes forour company sign on the exteriorwall to conserve energy.

20


OCEANIA

NORTH AMERICA

JAPAN

ASIA

AFRICA

EUROPE

Constructing the NTN R&D Center to strengthen thedevelopment of eco-friendly products

■ “Creating Value”NTN is currently implementing the

medium term business plan “RapidAdvance 21” as a priority measureand conducting reforms to “createvalue” under the concept “designdetermines everything.”

The NTN R&D Center that wascompleted September 2005 in theIwata area, will support rapidlydeveloping technical innovationsworldwide, respond to borderlessmarkets and will serve as the“mother center” for the global supplyof new products and technologies.Overseas, in addition to our AmericaTechnical Center in the NorthAmerican area, in 2005 we willreorganize our technology base inEurope and in 2006 we plan onconstructing a technical center in theChina Changzhou area. Once thesecenters are completed at the end offiscal 2006, we will have establishedour research and technology systemat four points worldwide includingChina.

■ TOPICS ■

■ Development of NextGeneration EnvironmentalEnergy Products

At this center, not only do weconduct technological developmentfor existing operations, we willstrengthen the development of newproducts in the cutting-edge fields ofnext-generation automobiles,environmental energy, medical careand robotics. We have reinforced ourspecialty division for the purpose ofapplied research in electronics andwe will develop new products whichhave substantial market potential ora major technological applicationpotential in cutting-edge areas suchas next-generation automobiles,environment, and welfare.

■ “Living Research Lab” doesnot sleep

We operate 24 hours a day dealingwith development items and re-sponding to customers worldwideand we created a real time networkwith our overseas technical centersin an effort to share technologicalinformation and utilize testingfacilities globally. At this center, wepromote speed in the developmentof new products through the latest ITenvironment, testing facilities, andflexible management.

Illustration of NTN R&D Center

NTN R&D Center(1) Location: Inside the NTN Iwata Works

(1578 Higashi Kaizuka, Iwata City, ShizuokaPrefecture)

(2) Total floor area: Aggregate floor space for 5floors = 16,800m2

(3) Structure: The building will be built on aseismically isolated structure using the“support system with sliding type seismicisolator” manufactured by NTN EngineeringPlastics Corp.

(4) Facilities: In-house power generation, wellwater supply systems and other emergencyresponse equipment designed for useduring accidents and natural disasters,Roof greenery, Eco-friendly air-conditioning

(5) Total construction costs: Approx. ¥3 billion

■ A Place to Experimentusing EnvironmentalDesign

Concerning the facilities anddesign of the building, we consid-ered it an opportunity to experimentwith environmental devices such asseismic isolation, natural energy andeco-air conditioning. The building isenvironmentally friendly with rooftopgreening, the green procurement ofthe equipment used, and theintroduction of NTN environmentalequipment. Additionally, it has aseismic isolated design usingseismic isolation equipmentdeveloped by NTN to provideagainst an earthquake like the GreatHanshin Earthquake and has crisismanagement functions so that it canoperate as a disaster control centerfor the Iwata area operation site(refer to picture and diagram below).

“NTN Super Sliding Bearing”



GUANGZHOU NTN-YULON DRIVETRAIN CO., LTD.

NTN-NIDEC (ZHEJIANG) CORP.

SHANGHAI NTN CORP.

CHANGZHOU NTN-GUANGYANG CORP.

NTN Manufacturing Thailand

NTN Kugellagerfabrik (Deutschland) GmbH Mettman Plant

NTN Transmissions Europe

Environmental Conservation Efforts at NTN Operating Sites

Every operating site of the NTN Group, including those overseas, iscommitted to actively preventing global warming while reducing environ-mental impact through waste reduction, recycling, and reuse. NTN oper-ating sites are seeking to eliminate environmental pollution by satisfyingnot only legally regulated standards but also our more stringent voluntaryinternal standards for substances of environmental concern.

In addition, NTN takes part in community activities, cooperating withlocal residents’ efforts to preserve the environment.


22 NTN corporation Environmental Action Report 2005


Domestic

Area

Iwata Works

Nagano Works

Okayama Works

Takarazuka Works

NTN Casting Corp.

NTN Kongo Corporation

NTN Mikumo Co., Ltd.

NTN Powder Metal Corporation

Hikari Seiki Industry Co., Ltd.

NTN Omaezaki Corporation

NTN Engineering Plastics Corporation

Kuwana Works

Head Office

NTN Mie Corporation

To be obtained

Obtained

■ Operating Sites expected to be certified.

Operating SiteTo be obtained

Year Month

Domestic NTN Mie Corporation 2005 11

ChinaSHANGHAI NTN CORP. 2005 6

CHANGZHOU NTN-GUANGYANG CORP. 2006 9

NTN Bearing Corporation of Canada, Canada Plant

NTN Driveshaft, Inc.

NTN-Bower Corporation, Macomb Plant

NTN-Bower Corporation, Hamilton Plant

NTN-BCA Corporation, Lititz Plant

American NTN Bearing Manufacturing Corporation, Elgin Plant

American NTN Bearing Manufacturing Corporation, Schiller Park Plant

¨

¨


(Operating sites included are: Kuwana Works, Iwata Works, Okayama Works, Takarazuka Works, Nagano Works, NTNKongo Corporation, NTN Mikumo Co., Ltd., NTN Engineering Plastics Corporation, NTN Powder Metal Corporation, HikariSeiki Industry Co., Ltd., NTN Casting Corp., NTN Omaezaki Corporation, and the Head Office.)

RegistrationAgency

■ Certified Operating Sites

AreaOperating Site Year/Month Obtained Registration

Company Name Plant Name Year Month Registration No.

Obtained collectively through the multi-site method 1999 11 JSAE176 JSA

American NTN Bearing Elgin Plant 2000 6 111994 LRQAManufacturing Corporation Schiller Park Plant 2000 9 112115 LRQA

NTN-BOWER CorporationMacomb Plant 2000 6 111998 LRQA

Hamilton Plant 2000 6 111999 LRQA

NTN-BCA Corporation, Lititz Plant 2000 7 A8699 UL

NTN Driveshaft, Inc. 1999 12 A8478 UL

Canada NTN Bearing Corporation of Canada, Canada Plant 1999 7 287 KPMG

Germany NTN Kugellagerfabrik (Deutschland) GmbH, Mettman Plant 1999 6 201167-2 LRQA

France NTN Transmissions Europe 2003 1 19479 AFAQ

Thailand NTN Manufacturing Thailand 2003 8 31634 TUV

NTN-NIDEC (ZHEJIANG) CORP. 2005 1 02005E10013R0L CNAB

GUANGZHOU NTN-YULON DRIVETRAIN CO., LTD. 2005 4 104 043247 TUV

USA

China


Environmental Conservation Efforts at NTNDomestic Operating Sites


Kuwana Works

Green Activities toCreate Woodlands

We are actively promoting therecovery of exhaust heat from theco-generation process for use inheating rinse water used in theforging process.

In addition, in an aim to coexistwith the local community, we activelyparticipate in local greening activi-ties. The woodland improvementcampaign, conducted by Greenvolunteers, is one of them. Ouremployees and their families partici-pated in planting azaleas in thewoodlands near our plant, madebenches out of thinned wood andpaved areas near the arbor using oldgrinding stones.

Iwata Works

Heat exchanger to use co-generationexhaust heat

Planting Azaleas

Actively PromotingEnergy Conservation andWaste Reduction

In fiscal 2004, we introduced fourgrinding swarf briquetting machinesin order to increase swarf recyclingand coolant reuse.

Additionally, we renovated twocompressors into high-efficiencyturbo types to improve energyconservation, and at the same time,we switched the heat source for ourheat treating furnace from electricityto city gas as an effort to reduce CO2

and cost.We received an award from the

Mie Prefecture Industrial WasteAssociation in recognition of ouractive efforts towards waste treat-ment that span over 10 years. Environmental training for new recruitsGrinding swarf briquetting

machineAward from the Mie PrefectureIndustrial Waste Association

2454 Tsuchijima, Higashikata, Kuwana, Mie

Operation started: 1918 Site area: 177,935m2

Main products: Ball bearings, cylindrical roller bearings, constant velocity joints, steel balls

1578 Higashikaizuka, Iwata, Shizuoka


Main products: Constant velocity joints, needle roller bearings, ball bearings, andvarious precision equipment


500-1 Hatakeda, Bizen, Okayama


Main products: Tapered roller bearings, axle unit bearings, constant velocity joints

Okayama Works

Created New TaperedRoller Bearing Plant;Next Generation Equip-ment with ImprovedProductivity in Operation

At the new tapered roller bearingplant, in an effort to balance thereduction of environmental hazardsand productivity, we introduced nextgeneration equipment with increasedworkability and production efficiencywhile at the same time realizingenergy conservation while taking upless space to produce axle bearingsfor automobiles.

Additionally, we have takenmeasures to green the grounds suchas planting pressure resistant grasson our plant’s west parking lot.

Parking lot with pressure resistant grassNext generation equipment

Takarazuka Works

Contribute to Society byJoining and SupportingLocal Activities

We have created community-conscious voluntary standards fornoise and vibration that go beyondthe legal standards and promotedthe recycling of resources throughseparating waste streams within theworkplace.

In an effort to coexist with our localcommunity, we have opened ourcompany playing fields to our localsports groups (Takarazuka LittleLeague, rugby team) and supportedyouth activities. We have alsocreated environmental activities withthe residents of our community,taking part in activities such as cleanup volunteers for the “MukogawaRiverside Park Beautification Com-mittee.”

Waste Storage Clean up volunteer activities

2-1 Toyo-cho, Takarazuka, Hyogo


Main products: Tapered roller bearings, ball bearings, inner rings and pins for needleroller bearings

● Domestic Operating Sites



Nagano Works

Confirmed Energy Conser-vation Effect through theApplication of Heat Shield-ing Paint

Last summer, we conducted the trialapplication of heat shielding paint thatreflects 70% to 80% of the solar rayson part of the roof of our miniaturebearing plant. As a result, we were ableto confirm a 30°C drop in the surfacetemperature of the roof in the summer.We will continue to apply this paint toour roofs as an effective measure toreduce energy consumption in thesummertime.

In addition, our employees and theirfamilies took part in the 12th annualTenryu River Picnic, with the proposal of“Let’s make Tenryu River safe for swim-ming and create a recycling society,” andhelped clean up the river bank.

Tenryu River Picnic Opening Ceremony(clean up activities)

Heat shield paint (the white part)

14017-11 Nakaminowa, Minowa-machi, Kamiina-gun, Nagano


Main products: Miniature ball bearings, small size ball bearings, cam followers,autotensioners, and parts feeders

NTN KongoCorporation

Significant Impactthrough the Introductionof Grinding swarfbriquetting machine

We introduced two “grinding swarfbriquetting machines” to the twoplants that have started full-scaleoperation in fiscal 2004. As a result,the waste treatment cost for theentire works was cut in half com-pared with the previous year.Additionally, through the collection ofoil based grinding fluids, we wereable to double our cost savingscompared to the previous year.

At the same time, we are dedi-cated to the beautification of thesurrounding areas and conductclean up activities four times a year.

Grinding swarf briquetting machine Community Beautification Activities

1-3-13 Kido Nishimachi, Kawachi Nagano, Osaka


Main products: Ball bearings, bearing units, double row angular contact ball bearings,clutch release bearings


NTN Powder MetalCorporation

Conduct Periodic Emer-gency Response Training

We conducted emergencyresponse training for liquid ammo-nium, which can have a grave effecton the environment in the event of adisaster. In continuation of our effortsin the previous fiscal year, wepromoted energy conservationefforts with electricity and gas,demand control for air conditioning,and the recycling of componentwaste materials.

Additionally, we are activelyinvolved in greening activities in ourcommunity.

Emergency response training Greening activities

NTN EngineeringPlastics Corporation

Emphasis onEnvironmental Education

At NTN Engineering Plastics, weemphasize environmental education.In order to promote the recycling andreuse of waste plastics, we provide aplace for education at the wastestorage location, have programs toeducate our employees on theproper way to separate waste andwork to motivate our employees.

In addition, we conducted emer-gency training, “specifically reenact-ing an accident where waste alkalinefluids have leaked from the ammoniatreatment equipment to the gutters.”

Waste separation program Emergency response training


101 Katsutaba, Kanie-cho, Ama-gun, Aichi


Main products: Oil impregnated sintered bearings, hydrodynamic bearings, andsintered mechanical components

970 Ano, Toin-cho, Inabe-gun, Mie


Main products: High performance plastics products made of the original compounds



NTN Casting Corp.Hirata plant : 475-1 Nadabun-cho, Izumo-shi, Shimane

Kisuki plant : 231-29 Yamagata, Kisuki-cho, Unnan-shi, Shimane


Main products: Bearing units, plummer blocks, casting material for general industrial machinery

Created an environmentin line with the demandcharacteristics of wasteslag.

We promoted the recycling ofwaste slag and waste sand createdduring casting as foundation forroads. There is a large fluctuation indemand, therefore we have createda temporary storage space exclu-sively for March 2005 and havecreated an environment for recycling.

Additionally, we installed an airdryer in the compressor in an effortto make more efficient use of air.

Temporary storage space for waste slag Air dryer

NTN Mikumo Co., Ltd.

Recycling of Used Oils

To efficiently use resources, we arereducing the amount of oil used. Byputting oils through distillationrenewal equipment, we haveobtained the same quality as new oil.This has also been effective inreducing costs and we plan onexpanding its application.

As part of our contribution tosociety, our employees and theirfamilies took part in the “River andOcean Clean Up Mission” sponsoredby the local government and helpedclean up the seaside.

Distillation renewal equipment for oils Seaside clean up activities

750-1 Onoe, Matsusaka-shi, Mie


Main products: Needle roller bearings for rocker arms, torque diodes, various clutches,spherical rings for constant velocity joints, PTJ roller cassettes, plastic molding


4681-3 Sakura, Omaezaki-shi, Shizuoka


Main products: Needle roller bearings

NTN OmaezakiCorporation

Sewage treatment facilities Clean up activities

Hikari Seiki IndustryCo., Ltd.

Introduced Compressorswith Inverters toConserve Electricity

As one of our energy conservationmeasures, we introduced compres-sors with inverters. As a result, wewere able to reduce our electricityusage by about 20% and we werealso able to reduce noise duringoperation.

In addition, in cooperation withneighboring companies, we areactively involved in local beautifica-tion activities.

Compressor with inverter 75kW


8 Higashikata, Sanmaiden-cho, Tenri-shi, Nara


Main products: Bearing adaptors, constant velocity joint components, and seal wear ringfor Shinkansen rail cars

Acquired ISO14001 andIncorporated Multi-SiteCertification

Last November, we receivedISO14001 certification and wereincorporated in the NTN multi-sitecertification. We worked to educateall employees about the environmentand to raise awareness by conduct-ing activities such as distributing“Environmental Action Guideline”cards to all new employees andhaving them repeat it in chorus.

Additionally, in order to protect therich natural environment of our sitelocation, we pay particular attentionto the sewage treatment dischargedfrom our plant.

NTN corporation Environmental Action Report 200530 NTN corporation Environmental Action Report 2005

Head Office


Participated in “CleanOsaka 2004”

Through the environmentalactivities of the Office EnvironmentAction Committee, we have pro-moted resource and energy conser-vation activities in the office. Forexample, we have set targets for thereduction of electricity, gasoline,paper and general waste andworked to meet these targets. Also,by using an ice storage air condition-ing system, we are reducing daytimepower consumption.

In addition, we took part inOsaka’s environmental event, “CleanOsaka 2004,” and helped clean upthe local parks.

Clean up activities in parks

Ice storage air conditioning system


1-3-17 Kyomachibori, Nishi-ku, Osaka

Operation started: 1918 Site area: 969m2

30


Environmental Conservation Efforts at NTNOverseas Operating Sites


Reusing Crates (large size cardboardboxes)

We worked on recycling activitiessuch as using incoming crates usedto ship parts from Japan to ship outcompleted products and recoveringwaste materials.

We also worked to conserveenergy by eliminating thermal dryingafter assembly, and switching thefluorescent lighting in the workplaceto an energy saving type.

Crates Energy saving fluorescent lighting

Donated HickorySeedlings

We have been cooperating withthe charity operation called “FoodDrive” since 2001. Food donated byour employees have been distributedto people facing danger such asvictims of domestic violence andhomeless people through a localorganization.

In addition, we donated hickoryseedlings to Elgin and our employ-ees planted them in our local parkson Earth Day held this April.

Our employees planting seedlings in local parks A scene from Earth Day

● Overseas Operating Sites

American NTN BearingManufacturingCorporation, Elgin Plant

American NTN BearingManufacturing Corporation,Schiller Park Plant

1500 Holmes Road, Elgin, Illinois 60123-1206, U.S.A.


Main products: Hub bearings, angular units, steel balls

ISO14001 Certification: June 2000

9515 Winona Avenue, Schiller Park, Illinois 60176-1024, U.S.A.


Main products: Radial ball bearings

ISO14001 Certification: September 2000



NTN-Bower Corporation,Hamilton Plant

Significant Reduction inConsumption of Oil

We are actively promoting oilrecycling; and in 2004, we recycleda total of 30,800 gallons of quench-ing oil and other hydraulic oils.

In the future, we will continue towork to conserve energy by reducingthe gas consumption in carburizingfurnaces and introducing highefficiency motors.

Used hydraulic oil recovery

NTN-Bower Corporation,Macomb Plant

Reduced Electric andGas Consumption Costs

We enhanced energy conservationby periodically adjusting the gasburners in the heat-treating furnacesand boilers to improve combustionefficiency and changed the burnersin the rotary hearth furnaces to highefficiency burners.

Additionally, we installed radientheating in our plant. Througheffective heating, we were able tocut our natural gas consumptioncosts by about 9,000 dollarscompared to the previous fiscal year.

Radient heaters installed above the work area

2086 Military Street South, Hamilton, Alabama 35570, U.S.A.


Main products: Tapered roller bearings


711 North Bower Road, Macomb, Illinois 61455-2511, U.S.A.


Main products: Cylindrical roller bearings, tapered roller bearings



NTN-BCA Corporation,Lititz Plant

Promote Energy Conser-vation by Switching toNew Type Compressor

We are promoting energy conser-vation by switching several of theexisting piston type air compressorsto two modern scroll compressors.

Modernized scroll compressor

NTN Driveshaft, Inc.

Significantly ReducedSolid Waste Materials

By improving the recycle rate ofcardboard boxes and wood palettes,we reduced the amount of solidwaste material that is sent to landfillsby 31%.

Additionally, last November, wereceived the 2004 Governor’s Awardfor the State of Indiana to commendour outstanding environmentalefforts. This recognized our continu-ous (5 year) improvement in environ-mental management and is oursecond award in this category.

Promote recycling activities 2004 Indiana Governor’s Award

8251 South International Drive, Columbus, Indiana 47201, U.S.A.


Main products: Constant velocity joints

ISO14001 Certification: December 1999


401 West Lincoln Avenue, Lititz, Pennsylvania 17543-7020, U.S.A.


Main products: Radial ball bearings, needle roller bearings, rocker arm bearings, EM couplings

ISO14001 Certification: July 2000



NTN Kugellagerfabrik(Deutschland) GmbH,Mettmann Plant

Donated alders to theMettmann community

At the 1100th anniversary of thefirst official record of the town ofMettmann in 2004, citizens andcompanies donated 1100 trees tobe planted in the area. Our plantparticipated by donating 7 aldersand a bench.

Planting trees in town

NTN BearingCorporation ofCanada, Canada Plant

Introduced compressorwaste heat recoveryheating system

We constructed a new building forthe production of angular unitbearings. In doing so, we introduceda compressor waste heat recoveryheating system and were able toreduce 20,000 CAN$/year on gasfuel costs and reduce CO2.

Additionally, by utilizing thegrinding swarf briquetting machinewe are working towards the efficientusage of resources and zero emis-sion.

Compressor waste heat recoveryheating system

Grinding swarf briquetting machine

6740 Kitimat Road, Mississauga, Ontario, L5N 1M6, Canada


Main products: Radial ball bearings, angular units

ISO14001 Certification: July 1999

NTN Strasse 1-3 40822 Mettmann, F.R. Germany


Main products: Ball bearings, angular units, autotensioners



NTN ManufacturingThailand

Utilize natural light toreduce daytime lightingusage

We have adopted a skylight (clearroof material) for the roof of our newplant and were able to reducedaytime lighting usage by letting innatural light.

Additionally, we installed wastewa-ter treatment equipment for thesurface treatment of wastewater thatis in line with Thailand’s domesticlaw.

Skylights Wastewater treatment equipment

NTN TransmissionsEurope

Significant results Envi-ronmental management

We shortened the length of timethe shutters to the forklift exit areopened to prevent heat from leakingout of the plant and drasticallyreduced gas consumption.

In addition, we installed an oil/water separator to renew and reuseused cleansing water and as a resultachieved zero emission to thenatural world.

Automatic shutter Oily water separator


Z.A. des Tremelieres Communaute Urbaine du Mans 72704 Allonnes Cedex, France



ISO14001 Certification: January 2003

111/2 Moo 4,Tambol Pluakdaeng, Amphur Pluakdaeng, Rayong 21140, Thailand


Main products: Constant velocity joints, hub bearings, needle roller bearings, autotensioners,timing belt pulley, needle rollers for rocker arms, electromagnetic clutchbearings, hydrodynamic BEARPHITE, shaft, housing

ISO14001 Certification: August 2003


No.11 Jun Da Road, East Dong-Peng Avenue, East District of Guangzhou Economic andTechnological Development Zone, Guangzhou, Guangdong Province, China



ISO14001 Certification: April 2005


GUANGZHOU NTN-YULON DRIVETRAINCO., LTD.

NTN-NIDEC(ZHEJIANG) CORP.

Acquired ISO14001Certification in January2005

We set up a preparation team forthe ISO14001 certification lastAugust and began preparing for theacquisition of the certificate. Addi-tionally, selected staff members fromeach department took part in internalauditor training and received qualifi-cation. After sufficient preparationsof our environmental managementsystem in September, we receivedISO14001 environmental manage-ment system certification in Januaryof this year.

Emergency response training (fire drill)

Environmental Educationfor Employees

We launched the ISO14001Certification Preparation team lastAugust and built up our Environmen-tal Management structure andsuccessfully received certificationthis April.

We are actively involved in theenvironmental education of employ-ees, and make efforts to sortgarbage and effectively useresources.

Waste sorting


Pinghu Economic-Development Zone, Pinghu City, Zhejiang Province, China


Main products: Hydrodynamic bearing units

ISO14001 Certification: January 2005


Results of the NTN Environmental Action Report2004 Questionnaire

NTN conducted this survey in order to hear everyone’s opinions through the Environmental Action Report.We would like to thank everyone who cooperated in this survey and present the following results.

● Well organized and easy for an outsideparty to understand.

● Can see you are returning to your mainline of business, EMS.

● It covers all aspects of Environmentalissues.

● I give you credit for your high recyclerate.

4. A sampling of the comments

1. Impressions 3. Contents that interested the readers (Multiple answers allowed)

2. How the readers’ felt about theNTN Group’s approach toenvironmental issues

Kuwana WorksIwata WorksOkayama WorksTakarazuka WorksNagano WorksNTN Kongo CorporationNTN Engineering Plastics CorporationNTN Powder Metal Corporation

● I believe it would be clearer if illustra-tions were used to show how themajor waste materials are beingreused with regards to zero emission.

● I would like to know more about youractivities within the local communities.

■ Target Locations of this Report

American NTN Bearing Manufacturing Corporation, Elgin PlantAmerican NTN Bearing Manufacturing Corporation, Schiller Park PlantNTN-Bower Corporation, Macomb PlantNTN-Bower Corporation, Hamilton PlantNTN Driveshaft, Inc.NTN-BCA Corporation, Lititz PlantNTN Bearing Corporation of Canada, Canada PlantNTN Kugellagerfabrik (Deutschland) GmbH, Mettman PlantNTN Transmissions EuropeNTN Manufacturing ThailandNTN-NIDEC (ZHEJIANG) CORP.GUANGZHOU NTN-YULON DRIVETRAIN CO., LTD.

● Why don’t you open your seminarsand training to companies, organiza-tions, and schools in the localcommunities?

● Please tell us about your activities withregards to Green Procurementactivities.

■ Period of the Report

April 2004 to March 2005 (with some exceptions)

* This report is based on all operating sites that produce NTN-brand products.

NTN Mikumo Co., Ltd.NTN Casting Corp.Hikari Seiki Industry Co., Ltd.NTN Omaezaki CorporationNTN Mie CorporationHead Office

SOY INKPRINTED WITH

T M

This environmental action report was printed with soy-based ink on 100% recycled paper.Printed in Japan (2005.10.1500)

For further information about this environmental report contact:

Environmental Management Department1-3-17 Kyomachibori, Nishi-ku, Osaka, 550-0003 JapanPhone: 81-6-6449-3517Fax: 81-6-6443-2592URL: http://www.ntn.co.jp/kankyou/index.htmlE-mail: [email protected]

NTN corporation

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