NGK INSULATORS, LTD.

Nov. 2010

Today's Speakers

TitleName

Susumu Sakabe

Shun Matsushita

Vice PresidentFinance and Accounting Dept.

President & Chief Executive Officer

1st Half Consolidated Financial Results(¥Bil.)

¥/ER121128¥/US$9195Exchange

Rate

+194%11.03.7Net Income+147%14.45.8Ordinary Income+164%16.66.3Operating Income+16%120.0103.4Net Sales

Growth ratio03/'1103/’10

◆ Sales & Income increased dramatically from the 1st Half of previous year .

Points of 1st Half Result

＜Advantages＞■ Demand for Automotive related Ceramic Products is

active due to the good car sales especially in emerging countries .

■ Recovery of demand for Ceramic Components for Semi-conductor Production Equipment.

＜Disadvantages＞■ Power : Decrease of the domestic special procurement of

UHV Transmission line project and the change of market in China.Trough of orders of NAS battery overseas.

■ Stronger Yen versus US$ and EUR.

Forecast for Fiscal year Ended March 2011(¥Bil.)

¥/ER116130¥/US$8794Exchange

Rate

+32%23.517.8Net Income+21%30.024.9Ordinary Income+28%30.023.5Operating Income+8%255.0235.5Net Sales

Growth ratio03/'1103/’10

◆ Sales & Income increase from the last fiscal year,varying with each business

Highlight of Fiscal Year 2011

＜Advantages＞■ Demand for Automotive-related products increases due to the

recovery of car sales and tightened emission regulations .■ Recovery of demand for Ceramic Components for Semi-

conductor Production Equipment .

＜Disadvantages＞■ NAS Battery : Delay of orders from overseas and the domestic

market of wind energy slows.■ Insulator :Decreasing demand and increasing competition

in China . ■ Concern about the backlash from the end of incentives

for car sales .■ Stronger Yen versus US$ and EUR (Est. ¥80/$, ¥110/EUR)

255

236

200

225

250

275

03/'10 03/'11Est.

-10-4 +25

+11

-2

Factors of Sales VariationFactors of Sales Variation¥ Bil.

FX Rate

NAS

Automotive

related

Semi-Conductor Others

23.5

5

10

15

20

25

30

35

40

+13.8

03/'10 03/'11Est.

-4.7

-3.3

-3.6

30.0

+4.3

Factors of Op. Income VariationFactors of Op. Income Variation¥ Bil.

FX Rate

NAS

Automotive

related

Semi-Conductor Others

117113101

131

1627696

87

83

8162

6147

60

78

44

30.034.023.532.8

69.4

30.034.024.931.5

69.3

23.525.017.824.546.0

Sales Operating Income

Ordinary Income NetIncome

Sales and Income of NGK

03/’08 03/’09 03/’10 03/’11Est.

¥Bil.

Power

CeramicProducts

(Engi-neering)

Elec-tronics

03/’11Est.(May’10) (Oct’10)

365

273

236

270255

◆ Sales & Income are short of the forecastin March 2010

Change from Forecast in March 2010

■ Ceramic products : firm, because of demand for Automotive Related Ceramics, but sales are forecastcarefully due to concern about the backlash from the end of incentive in the 2nd Half .

■ Power : Sales and Income decreased due to the drastic decline of the shipment of Insulator and NAS Battery.

■ Yen keeps stronger versus US$ and EUR¥90 / $→¥87 / $、¥120 / EUR→ ¥116 / EUR

59574451 58577884 80

56

30483947

384638 58

44 3623 31

27

20

3131

30

37 3741

3212135

120145

125132103

121

174191

152

0

50

100

150

200

250

1stHalf

2ndHalf

1stHalf

2ndHalf

1stHalf

2ndHalf

1stHalf

2ndHalf

1stHalf

2ndHalf

Ceramic Products

03/'08 03/'09 03/'10

After consolidation elimination

Engi-neering

Elec-tronics

Power

03/'11Est.

Net Sales of NGK / Half Term¥ Bil.

03/'11Est.(May’10) (Oct’10)

2.4 3.110.1

15.49.14.5 3.7

0.7

-3.1

8.011.0

19.823.6 20.2 6.0

-4.2

3.14.7

4.3

4.0

1.0

4.0

3.6

5.4

8.1

6.15.4

2.8

-0.5-0.9

4.1

13.4

16.6

29.034.5

34.9

3.8 6.3

17.2 16.018.0

-5

0

5

10

15

20

25

30

35

40

1stHalf

2ndHalf

1stHalf

2ndHalf

1stHalf

2ndHalf

1stHalf

2ndHalf

1stHalf

2ndHalf

Income of NGK / Half Term

Elec-tronicsPower

Ceramic Products

Engi-neering

¥ Bil.

03/'08 03/'09 03/'10 03/'11Est. 03/'11Est.(May’10) (Oct’10)

4.0

Power Business Power Business Sales & Operating IncomeSales & Operating Income

8796

7681 83

10.7%9.1% 9.1%

-4.6%

7.3%

0

20

40

60

80

100

03/'08 03/'09 03/'10 03/'11Est. 03/'11Est.-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

SalesOp. Income Ratio

( )Op.Income

（7.6）（8.7）

After consolidation elimination

（8.0）

（-3.5）

（7.0）

¥Bil.

(May’10) (Oct’10)

1817

10

79

10

5

1415

0

3

5

8

10

13

15

18

20

03/'08 03/'09 03/'10 03/'11Est. 03/'11Est. 03/'12Est. 03/'12Est. 03/'13Est. 03/'13Est.

Sales of Insulators in China MarketSales of Insulators in China Market¥Bil.

Oct. ‘10May ‘10 Oct. ‘10May ‘10 Oct. ‘10May ‘10

OverviewDomestic : Order of UHV transmission line project passed a peak.

China : Part of the shipments of demand for UHV transmission line project slows.

Middle East and North America : Markets are active.Changes of environment from the beginning of the term

China : Despite no change in mid-term estimates, the progress of UHV and DC Transmission Insulator project is slower than initial estimates.Price goes down and competition increases due to the growth of Chinese competitor and decreasing demand.

Other market : No change in particular.Tasks

Domestic : Promotion of replacing product delivered during periods of high economic growth.

China : Recovery and keeping the competitive edge by producing differentiated product.

40

35

17

30

20

1316

6.04.5

1.6 1.6 2.50.6

-3.0-10

0

10

20

30

40

03/'08 03/'09 03/'10 03/'11Est. 03/'11Est. 03/'12Est. 03/'13Est.-5

0

5

10

15

20Overseas SalesDomestic SalesOp.Income(Right Axis)

¥Bil.

(May’10) (Oct’10) (May’10) (May’10)

NaSNaS Battery BusinessBattery BusinessSales & Operating IncomeSales & Operating Income

Overview- Backlog of big orders from overseas over next several years.- Demand for stabilization of the power distribution system is increasing to

meet the spreading use of renewal energy.Changes of environment

Domestic : No subsidies for wind energy provider in 2010 and 2011.New order relating to wind power will come up around2012 due to New Buyback Program.

Overseas : Several projects in Europe delayed due to economic situation and exchange rate fluctuation. Operation of new equipments whose production capacity is 150MW topsgot slightly behind the initial schedule due to the drastic change of markets. Deficit due to the decrease of shipments in hand and a worse-case of mix of orders.NAS Battery Business still has the position as leading business.

Tasks- Promotion to reduce costs radically.- To review to build oversea base.

2 100 200 MW0

10min

1h

10h

time

Generating Power

1 3

Lithium Ion（Cell phone, PC)

Lithium Ion（Electric Car）

CapacitorFlywheel

5min

MW

鉛電池（据置用）

大型電力貯蔵

Nickel-hydride (Hybrid Car)

Comparison to Other Secondary BatteriesComparison to Other Secondary Batteries

NASLithium Ion（For Stationary)

Large-size Power Storage

Lead Battery(For Stationary)

131

101

162

117113

16.8%

20.9%

27.0%

13.0%

16.9%

02040

6080

100120

140160180

03/'08 03/'09 03/'10 03/'11Est. 03/'11Est.0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Sales Op. Income Ratio

CeramicCeramic Products BusinessProducts BusinessSales & Operating IncomeSales & Operating Income

( )Op.Income

（43.8）

（22.2）

After consolidation elimination

（13.2）

（24.5）（19.0）

¥Bil.

(May’10) (Oct’10)

Overview Increasing car sales especially in emerging countries .

Demand will increase in mid to long term due to CO2 and emission regulations being tightened worldwide.

Automotive catalytic converters (“HoneyCeram”) ,Cd-DPF& Large-size honeycombs:

SiC-DPF : Tighter emission regulations in EU. Stiff competition with other materials.

Changes of environmentHoneyCeram gained share. Demand for SiC-DPF is beyond the estimation ofthe beginning.Increasing demand for Large Size HoneyCeram and Cd-DPF due to recoveryof bus and truck market.Rapid growth of Chinese market slowed after the last April.Concern about the decreasing demand after the end of incentive.

TasksFurther promotion of profit performance by cost reduction.Promotion of global strategy responding to increasing demand.

Expansion of the coverage area of regulations.Tighter regulations for truck and construction equipment.

3325 27

61

48

39

45

34

36

29

29

24

4715 17

914

20 43

32

117113101

131

162

0

50

100

150

03/'08 03/'09 03/'10 03/'11Est. 03/'11 Est.

Other productsHoneycomb Ceramics Cd-DPF & Large-size HoneycombSiC-DPF

Dieselrelated products

SalesSales of Ceramic Products of Ceramic Products BusinessBusiness¥Bil. After consolidation elimination

(May’10) (Oct’10)

Cordierite

Products

'04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

HoneyCeram

SiC-DPF

Cd-DPF

Large Size HoneyCeram

NOxSensor

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Japan New Short- New Long-Term Post New Long-Term

US Tier2/Bin#8 Tier2/Bin#5EU EuroⅢ EuroⅣ EuroⅤ EuroⅥ

Japan New Short- New Long-Term Post New Long-Term

US US'04 US'07 US'10EU EuroⅢ EuroⅣ EuroⅤ EuroⅥ

Japan same as Tier4a same as Tier4bUS Tier4a Tier4bEU Step-3 Step-4

PassengerCar

Truck

Off-Road

Long Term Picture of Automotive related productLong Term Picture of Automotive related product

Electronics BusinessElectronics BusinessSales & Operating IncomeSales & Operating Income

78

60

47

61 62

13.1%14.5%

4.9%5.1%

17.4%

0

20

40

60

80

100

03/'08 03/'09 03/'10 03/'11Est. 03/'11Est.

Sales Op. Income Ratio¥Bil.( )Op.Income

（13.5）

（3.0）

After consolidation elimination

（8.0） （9.0）

（2.3）

(May’10) (Oct’10)

Overview “Beryllium Copper”: Demand increases due to economic recovery.“Ceramic Components for Semi-conductor Production Equipment”: Demand increases due to recovery of investments of semi-conductor makers.

“Ceramic Actuators for Color Printer Heads”: Demand increasesdue to increasing demand for printers in emerging market. “Soshin Electric Products”: Demand for Railway, car electronics and EMC related products tends to increase.

change of environmentEver-increasing recovery may swing over to a correction phase.

TasksBuilding up revenue base and further promotion of developmentfor new product.

12

17

19

15 1011 11

15 15 14 1515

167

1121

19

16

22

28

6260

78

4761

0

50

100

03/'08 03/'09 03/'10 03/'11Est. 03/'11Est.

Metal related products

Ceramic components for semi-conductor manufacturing

Electronic related products

Soshin Electric Co.

Sales of Electronics Products BusinessSales of Electronics Products Business¥Bil.

（Sep.’09)

(May’10) (Oct’10)

Worldwide Semiconductor Revenues

8387

140131 101 113

11096

47

70

6160

0

100

200

300

400

03/'09 03/'10 03/'11Est. 03/'11Est. 03/'13Est.

236273

320

Electronics

Ceramic Products

Power

270

Medium Term Estimates / SalesAfter consolidation elimination

¥ Bil.

Exchange Rate

104¥/$

153¥/ER

94¥/$

130¥/ER

90¥/$

120¥/ER

90¥/$

120¥/ER

87¥/$

116¥/ER

25562

76

117

（Oct’10) （May’10) （May’10)

8.024.022.2

13.224.5

19.0

13.07.6

-3.5

7.0

13.0

2.3

9.08.03.0

50.0

30.034.0

23.5

32.8

-10

0

10

20

30

40

50

60

03/'09 03/'10 03/'11Est. 03/'11Est. 03/'13Est.

10.0%8.0%6.1%8.1%

10.0%12.0% 12.6 % 15.6%Op/Income Ratio 11.8 %

7.7 %

Medium Term Estimates / Operating Income¥ Bil.

Electronics

Ceramic Products

Power

（Oct’10) （May’10) （May’10)

ROE

Summary of Cash Flow (¥ Bil.)

+27.6-52.67.0Other investments-14.11.91.4Proceed, investment securities

-21.6

-30.0

32.717.4

-21.312.426.2

-23.021.0

03/’09

-71.2

-20.5

44.43.0

15.5-15.518.9-0.523.0

03/’10

-18.0

-31.5

38.0-4.0-1.12.0

19.0-7.429.5

03/’11Est.

Investing Activities

Property, plant & equip.

Income taxes paidIncome before taxes

Decrease in Acct. Rec.

Other changes

Operating Activities

Decrease in inventories

Depreciation

---4.2Change in consolidation subsidiaries

-40.0 -Bond issues, etc.-4.1-31.6 -15.2Repayment and redemption

-2.0-14.1Effect of exchange rate change

63.453.476.5Cash & eq. at End of Year

-31.9

-36.1

0.2

-7.4-13.7

03/’09

-23.1

1.7

-0.5

-6.2-

03/’10

10.0

-10.0

-

-5.9-

03/’11Est.

Net Changes in Cash & eq.

Cash dividends Acquisition of treasury stock

Other

Financing Activities

12.2 13.2 12.910.7 11.5

4.7%

3.8%4.5%4.5%

3.6%

03/'07 03/'08 03/'09 03/'10 03/'11Est.

Consolidated R&D Consolidated R&D/Sales Ratio

R&D Input (¥ Bil.)

(Oct’10)

611

3

2

6

13

3

5

13

19

917

1

4

2

4

4

32

2

4

3226

30

212119

24

1926

26

0

5

10

15

20

25

30

35

40

45

03/'07 03/'08 03/'09 03/'10 03/'11Est

Power Bus. Ceramic Prod.Bus.

Engineering Bus. Electronics Bus.

Corporate Depreciation and amortization

Capital Expenditures

1

¥ Bil.

(Oct’10)

301 320338304

476444

557515

15.3

8.16.1 7.7

10.8

0

100

200

300

400

500

600

700

800

03/'07 03/'08 03/'09 03/'10 03/'11Est.0.0

5.0

10.0

15.0

20.0

25.0

30.0Net Asset ROE

%

Total Asset & ROE¥ Bil.

470

323

(Oct’10)

71.9554.51

73.66

136.36

87.23

16 22 1622 20

27.8%

29.4%

29.9%16.1%

18.3%

0102030405060708090

100110120130140150160

03/'07 03/'08 03/'09 03/'10 03/'11Est.-40-38-36-34-32-30-28-26-24-22-20-18-16-14-12-10-8-6-4-202468101214161820222426283032343638404244464850525456586062646668707274767880828486889092949698100102104106108110112114116118120EPS

Dividends

Payout Ratio（Unit：¥）

337MilNumber of

Outstanding Stocks 337Mil 327Mil 327Mil 327Mil

EPS & Payout Ratio

Number of Stocks Issued 357Mil 338Mil 338Mil 338Mil 338Mil

The figures included in the following brief, including the business performance targets and figures are all projected data based on the information currently available to the NGKGroup, and are subject to variable factors such as economicconditions, competitive environments and future demands.Accordingly, please be advised that the actual results of business performance may differ substantially from the projections described here.

NGK INSULATORS, LTD.2-56, Suda-cho, Mizuho-ku, Nagoya

467-8530, Japan

Finance & Accounting Department

Tel. : + 81-52-872-7212 Fax. : + 81-52-872-7160E-mail : ir-office@ngk.co.jp

NGK Website (English Version) ：http://www.ngk.co.jp/english/index.html