A profit center for supporting revenues Developing products that contribute to carbon neutrality

Formerly known as the Ceramic Products Business Group, the newly launched Environment Business Group encompasses all environment-related needs by expanding beyond automotive-related products to include markets related to carbon neutrality, which are expected to see global market expansion moving forward. The new group name "Environment" represents the NGK Group's commitment to achieving new growth by engaging in businesses that use our unique ceramic technologies to make broad contribution to the environment.

It has been nearly 50 years since we began the manufacturing and sales of HONEYCERAM, ceramic substrates for automotive catalytic converters, in 1976. The NGK Group possesses technology that we have polished over the years while continuously adapting to changes in society and our business circumstances. We have been accumulating the knowhow related to environmental purification over the years ,which could apply in a variety of fields. With the accelerating shift from automobiles to electric vehicles (EVs), we see this period of change as a major opportunity and will work to develop and introduce high-value-added products and services that contribute to carbon neutrality. Marketing is critical to quick and steady business expansion. We will achieve results by collaborating with the Corporate NV Creation, an organization specializing in marketing, to acquire multifaceted and comprehensive information on marketability. We have sent lots of personnel from our business group to the Corporate NV Creation, and we have great expectations for achieving innovation based on new concepts. At the same time, we are projecting that demand for products related to internal combustion engines will continue to grow through around 2025, and one of the important missions of our business group is to support earnings as a profit center by applying our global stable supply system. In addition to existing products, we will also focus on expanding our lineup of new high-performance products that meet stricter exhaust gas regulations in various countries, including high-performance gasoline particulate filters (GPFs), NOx sensors for gasoline engines, and electrically heated catalysts (EHCs).

Since the days of the former Ceramic Products Business Group, our business group has embraced a culture of open communication and superior interdepartmental cooperation. We will maintain those characteristics while embracing a positive attitude that encourages enjoying change s. With this philosophy, we will unite as a business group to increase motivation and move forward while evaluating both our current situation and the future trends.

Business operations

We manufacture and sell environmental protection and energy-saving products all over the world including Japan, Europe, the United States, and China. Our products include ceramic substrates for automotive catalytic converters, filter products for removing particulate matter (PM) (diesel vehicles: DPFs; gasoline vehicles: GPFs), and NOx sensors for measuring nitrogen oxide (NOx) concentrations in automobile exhaust.

Business overview and forecast

The fiscal year ended March 2022 resulted in increased sales and profits. Although the global automotive market was impacted by a semiconductor supply shortage, demand for products increased due to a recovery in sales of passenger cars and trucks, and the impact of stricter emission regulations.

For the fiscal year ending March 2023, we are forecasting net sales of 325 billion yen and operating income of 65 billion yen, representing increased revenues but profit that is almost the same year on year. In addition to an increase in demand for GPF s and large size substrates due to stricter emission regulations in China, we expect an increase in sales due to increased demand for other products driven by a recovery in passenger car sales. However, in terms of profits, negative impacts such as soaring raw material costs and increased labor costs due to inflation are expected to offset the effect of higher sales.

Note: This interview was conducted in May 2022.