Financial Results Briefing
for the Six Months ended
September 2022
November 22, 2022

C

o

d

e

:

5

9

8

5

©SUNCALL CORPORATION All Right Reserved.

I.

AGENDA

Company Outline

II. Summary of Financial Results
for the Six Months ended
September 2022
III. Forecast for
FY ending March 2023
IV. Medium- to Long-term
Growth Strategy©SUNCALL CORPORATION All Right Reserved.

Company Outline©SUNCALL CORPORATION All Right Reserved.

Suncall’s Mission–Purpose

Improving the World through Technology

FutureSecond growth phase(Entry into electronic informationand communications segment)
First growth phase(Establishment of automotiverelated business)

Startup phase

Managing global big datawith extremely small
technology

No compromise—Creating products for thevehicles to which we entrust
our lives

1943
Foundation
Founded in Kyoto, which was not
subjected to bombing, in order to develop
and manufacture valve springs for aircraft
engines
Spring manufacture
During the war, produced from materials
transferred from the military’s Kokura
factory, which had been brought in bysubmarines from German

Motor/electric components(electric vehicle products)

Current
position

Rollers

HDD suspensions

New environment andenergy materials“Bamboo charcoal”

Transmission
components
Enginecomponents
Safetycomponents

Optical connectors

Demand willcontinue to grow

Medical care

Coiling machine at the time
(Photo of Kyoto headquarters)

4©SUNCALL CORPORATION All Right Reserved.

Company Outline

Company name

: SUNCALL CORPORATIONFounded: June 1943

Common stock: 4,808 million yen

Headquarters: 14, Umezunishiura-cho, Ukyo-ku, Kyoto

Share listing: Tokyo Stock Exchange, Prime Market

Number of employees : 2,241 (Consolidated)
646 (Non-consolidated)

Major shareholders: The Master Trust Bank of Japan, Ltd.
(Retirement Benefit Trust Account/
Kobe Steel, Ltd. Account)
16.7%
Marubeni-Itochu Steel Inc.
12.6%
ITOCHU Corporation
9.8%(As of September 30, 2022)
5©SUNCALL CORPORATION All Right Reserved.

Corporate Philosophy

Improving the World through Technology

Technology Taking Flight
to Create Change
Our management philosophy at Suncall is “Technology taking flight to create change,” andthe Company is forging ahead dramatically on this basis.

Technology Taking Flight

Create Change

Suncall would not exist if it were not for the Company’s
unique technologies

We are taking the lead in transforming
the world

6©SUNCALL CORPORATION All Right Reserved.

Suncall Precision Components Are Used in Variety of Applications
Automotive-related Products Segment
Materials-related business/copper wire for valve springs:
precision shaped wire
Suncall’s cores that support
integrated production
We use a wide range of unique
technologies in this corebusiness. We are pioneering
new domains through safety,
security, and high-quality.

Motor and electric components
Engine and transmission components(1) Valve springs(2) Ring gears/drive plates(3)Top-class market
share in Japan
Integrated production
from materials toprocessing enables
high-quality andhigh-durability thatcan withstand
100 million
compressions.

Top-class market sharein Japan
Our proprietary metal
processing technology
achieves high precision.

(1)(4) (2)(4) Bus bars
Each designed to suit unit shapes
The main focus of the future of wiring(4) Shunt on bus bars
A bus bar integrated sensor with builtin feature to measure voltage whiletransmitting current
Also supports high current such as inlithium-ion batteries(3) Spiral springs for seatbelts(4) Fuse sensors
A next-generation sensor that
destructively interrupts energizedparts when an overcurrent is detected

Safetycomponents(4) Motor cores/stator cores

We achieve comfort byenabling calibration of
precision torques by
manufacturing from materials.

Components that form the core of the motor
We achieve high productivity throughautomated integrated production.

7©SUNCALL CORPORATION All Right Reserved.

Suncall Precision Components Are Used in Variety of Applications
Electronic Information and Communications Segment
Printer-related products
Worldwide top market shareby supplying long, lightweight, Torque limitersand high-precision shafts

Printers

HDD suspensions
HDD

Rollers

Spring clutches

Degitoronics Communications-related products
Data centers

Opticalconnectors

Opticaladaptors

Supporting extreme levels of precision
requirements for HDD magnetic heads withpositioning at the level of 10s of nanometers

8©SUNCALL CORPORATION All Right Reserved.

Domestic and Overseas Bases

14 bases in Japan
Headquarters

Kyoto, Kyoto

15 overseas bases in 7 countries
Country

RegionInvestment
ratio

Indiana100%

Valve springs, ring gears, etc.

South Carolina

100%

Texas

100%

Optical communications components (sales
base)Aguascalientes

100%

Valve spring materials, ring gears

Aguascalientes

50%

Spiral springs for seatbelts

Guangzhou

100%

Valve springs, ring gears, etc.

Guangzhou

100%

Valve spring materials (sales base)

Foshan25%

Valve spring materials

Tianjin100%

Ring gears
Printer rollers, optical communications
components, etc.

Production bases
Head Plant
Kyoto, Kyoto
South Kyoto Plant
Toyota Plant

Toyota, Aichi

Hirose Plant

Toyota, Aichi

U.S.A.

MexicoDomestic subsidiaries
SUNCALL Engineering
Corporation

Minami-Alps, Yamanashi

SUNCALL Kikuchi
Corporation

Kikuchi, Kumamoto

Goods produced

China

Sales offices
Tokyo Branch

Yokohama, Kanagawa

Shenzhen

100%

Nagoya Branch

Toyota, Aichi

Hong Kong

100%

Nishi-Nihon Branch

Kyoto, Kyoto
Thailand

Chonburi

100%

Valve springs, ring gears
Spiral springs for seatbelts
Printer rollers, etc.

Ueda Sales Office

Ueda, Nagano

Kita-Kanto Sales Office

Utsunomiya, Tochigi

Vietnam

Hanoi

100%

Printer rollers, etc.

Hamamatsu Sales OfficeHamamatsu, Shizuoka

Yangsan49%

Materials for spiral springs for seatbelts

Kinki Sales Office

Kyoto, Kyoto

South
Korea

Nishi-Nihon Sales Office

Hiroshima, Hiroshima

Philippines

Manila100%

HDD suspensions (Representative Office)Company name

IMES Co., LTD.

Headquarters

Fujisawa-shi, Kanagawa

Investment ratio

41.5%

Overseas bases

Philippines, Thailand

9©SUNCALL CORPORATION All Right Reserved.

Summary of Financial Results for
the Six Months ended September 2022

©SUNCALL CORPORATION All Right Reserved.

Key Points: Financial Results for the Six Months ended September 2022

Sales increased year on year due to growthin the electronic information and communications segment.

Net sales: 26,813 million yen(+3,311 million yen/+14.1% YoY/of which, foreign exchange impact: 1,911 million yen)

Operating income: 471 million yen(-500 million yen/-1.1% YoY)
Automotive-related products segment

Electronic information and communications segment

Sales: +39.7% YoY

Sales: +2.6% YoY

 HDD suspensions
Sales increased year on year due to growth in investment for data
centers. Impact of restrained investment in data centers aroused
from September onward.
 Printer-related
Sales decreased year on year when there was an increase in
special demand from households due to the transition to remote
work, but demand was strong.
 Communications-related
Sales increased due to a recovery in demand in North Americanand Asian markets and new sales expansion.

 Materials-related
Sales increased year on year due to recovery in demand at
Mexican subsidiary.
 Automotive-related
Although some products such as bus bars and LED-related
products increased significantly, overall growth was sluggish
due to the lingering effects of the lockdown in China and theshortage of semiconductors.

11©SUNCALL CORPORATION All Right Reserved.

Summary of Financial Results for the Six Months ended September 2022
 Net sales

The electronic information and communications segment grew year on year.
Semiconductor shortages and decrease in automobile production led to stalled recovery in
the automotive-related products segment.

 Operating
incomeOperating income decreased by 1.1% year on year due to soaring steel prices and higher
energy and transportation costs, despite higher sales and the impact of yen depreciation.

 Ordinary
incomeForeign exchange gains increased due to the weaker yen (+219 million yen year on year).

Unit: Millions of yen

Six months ended
September 2021

Six months ended September 2022

ActualActualYoY changes

23,502

26,813

3,311

14.1%

Operating income

476

471

(5)

-1.1%

Ordinary income

650

882

231

35.6%

Net income

454

572

117

25.7%

14.36 yen

19.05 yen

109.8 yen/dollar

134.0 yen/dollar

130.9 yen/euro

138.7 yen/euro

Net sales

Income per share
Average exchange rate

12

©SUNCALL CORPORATION All Right Reserved.

Changes in Business Performance for the Six Months ended September 2022
 vs Q1
 Net sales

Sales increased due to higher steel prices and yen depreciation.

 Operating
incomeAutomotive-related products segment: Delay in passing on higher steel prices
HDD suspensions: Loss on launch of new models, increased depreciation
Changes in quarterly business performance
Net sales

11,768

7,964

Operating income

11,727

11,535

Operating income margin

11,77613,992

12,233

11,703

12,821

8,873
3.1%
1.3%

398

323

153

88
Q1

Q2

Q3

Q4

(76)

Q1

Q2

FY ended Mar. 2021

77
Q3

FY ended Mar. 2022

96
Q4

0.3%

73
Q1

Q2

FY ending Mar. 2023

(560)
(745)
13

©SUNCALL CORPORATION All Right Reserved.

Net Sales by Product Category for the Six Months ended September 2022
 Automotiverelated products
segment

 Electronic
information andcommunications
segment

Materials-related

Sales increased year on year due to recovery in demand at Mexican subsidiary.

Overall sales growth was sluggish due to the impact of the lockdown in China andAutomotive-related automobile production cutbacks, despite large increases in some products such as bus
bars and LED-related products.
HDD suspensions

Sales increased year on year due to increased investments in data centers, but from
September, monetary tightening in various countries and fears of economic recession
have had the effect of curtailing investment in data centers.

Printer-related

Sales decreased year on year, when there was an increase in demand for home use(consumer use) due to the shift to remote work.

Communicationsrelated

Sales increased year on year due to recovery in demand in the main markets of North
America and Asia and new sales expansion.

Unit: Millions of yen

Six months ended
September 2021
ActualNet sales
Automotive-related products segment
Materials-related
Automotive-relatedElectronic information andcommunications segment
HDD suspensions
Printer-related
Communications-related
Other

Six months ended September 2022
ActualYoY changes

23,502
15,646
3,409
12,237

26,813
16,053
3,506
12,547

3,311
407
97
310

14.1%
2.6%
2.8%
2.5%

7,462

10,421

2,959

39.7%

4,937
1,974
550
393

7,808
1,852
760
338

2,871
(122)
210
(55)

58.2%
-6.2%
38.2%
-14.1%

14©SUNCALL CORPORATION All Right Reserved.

Consolidated Balance Sheet for the Six Months ended September 2022
plant and equipment increased by 1,059 million yen due to active capital investment.
 Increase in non-current Property,
Shares of subsidiaries and associates increased by 1,719 million yen due to capital and businessassetsalliance.
 Increase in current
liabilities

Accounts payable–trade: +1,402 million yen; Short-term borrowings: +751 million yen;Accounts payable–other: +778 million yen

 Increase in net assets

Net income: +572 million yen; Dividends: -334 million yen;
Valuation difference on available-for-sale securities: -431 million yen;
Foreign currency translation adjustment: +1,644 million yen
As of March 31, 2022

As of September 30, 2022

Unit: Millions of yen
ActualCurrent assets

Changes from the end of theprevious fiscal year

Actual
28,32830,462

2,134

Cash and deposits

7,510

6,947

(563)

Trade receivables

11,076

12,3781,302

Inventories

8,463

9,984

1,521

Non-current assets

29,60431,7592,155

Total assets

57,93262,222

4,289

Total liabilities

20,75023,603

2,853

17,471

20,420

2,948

6,031

6,689

657

3,278

3,183

(95)

1,186

1,113

(72)

Total net assets

37,182

38,618

1,436

Total liabilities and net assets

57,93262,222

4,289

Current liabilities
Interest-bearing liabilities
Non-current liabilities

Interest-bearing liabilities

15©SUNCALL CORPORATION All Right Reserved.

Status of Cash Flows for the Six Months ended September 2022
 Cash flows fromoperating activities

Cash flows from operating activities increased by 70 million yen year on year due to an increase in net
income before income taxes through record-high sales.

 Cash flows frominvesting activities

Cash flows from investing activities decreased by 308 million yen year on year due to ongoing capital
investment in suspension business and capital participation in IMES.

 Cash flows fromfinancing activities

Cash flows from financing activities increased 204 million yen year on year due to decrease in short-termborrowings and lack of purchase of treasury shares in the current period.

Unit: Millions of yen

Six months ended
September 2021

Six months ended September 2022

ActualActualChangesCash flows from operating activities

2,143

2,213

70

Net income before income taxes

640

897

256

Depreciation

1,853

1,963

109

Decrease (increase) in trade receivables

(253)

(907)

(653)

Decrease (increase) in inventories

(713)

(881)

(167)

Increase (decrease) in trade payables

458

1,123

665

Cash flows from investing activities(2,868)(3,176)(308)

Purchase of non-current assets(2,816)(1,392)1,424

0(1,719)(1,719)

(474)

(270)

204

Increase (decrease) in short-term borrowings

996

337

(659)

Increase (decrease) in long-term borrowings

(415)

(274)

141

Purchase of treasury shares

(704)

(0)

704

Dividends paid

(351)

(333)

17

Purchase of investment securities
Cash flows from financing activities

16©SUNCALL CORPORATION All Right Reserved.

Capital Expenditure and Depreciation for the Six Months ended September 2022

 Continued capital expenditure, mainly in HDD suspensions

Capital expenditure and depreciation(Millions of yen)

Capital expenditure

Depreciation

5,978

GGP24

5,900

5,142
4,500

4,278

4,079

3,937

3,292

1,783

FY ended Mar. 2020
ActualFY ended Mar. 2021
ActualFY ended Mar. 2022
Actual1,963

FY ending Mar. 2023
Medium-term Plan

*Capital expenditure above is on a completion basis.

17©SUNCALL CORPORATION All Right Reserved.

Forecast for FY ending March 2023

©SUNCALL CORPORATION All Right Reserved.

Forecast for FY ending March 2023
Forecasts announced on August 5 remain unchanged
 Net sales

Down 7.8% from the August 5 announcement when excluding the positive impact of foreign exchange of
4,431 million yen. Although sales of HDD suspensions are expected to decline in the second half of theyear due to concerns about the economic slowdown, sales of existing automotive-related products
segment are expected to recover in the second half of the year.

 Operating income

Improvement in profitability through price pass-through of higher steel prices and other cost increases in
the automotive-related products segment. Increase in income due to improved productivity of new HDD
suspension models and growth in products related to electric vehicles and electrification.

Unit:
Millions of yen

FY endedMarch2022
ActualFull year

FY ending March 2023
Previous forecast(Announced on August 5)
1H

2H

ActualFull year

Forecast

1H

2H

Full year

YoYchangesCompared to previous
forecast
1H actual

2H

Net sales

47,43827,70029,30057,00026,81330,18757,000

20.1%

-3.2%

5.2%

Operatingincome

649

600

1,400

2,000

471

1,529

2,000

208.2%-21.5%

9.2%

Ordinary
income

1,022

700

1,400

2,100

882

1,218

2,100

105.5%

26.0%-13.0%Net income

904

450

1,050

1,500

572

928

1,500

65.9%

27.1%

-11.6%

Income pershare

29.34 yen

15.00 yen34.96 yen

49.96 yen

19.05

30.91

49.96

109.8 yen/dollar

129.8 yen/dollar

125.0 yen/dollar

127.4 yen/dollar

134.0 yen/dollar

140.0 yen/dollar

137.0 yen/dollar

130.9 yen/euro

135.1 yen/euro132.0 yen/euro133.6 yen/euro

138.7 yen/euro

135.0 yen/euro

136.9 yen/euroAverageexchange rate

19

©SUNCALL CORPORATION All Right Reserved.

FY ending March 2023 Net Sales Forecast by Business Segment(Medium-term Management Plan GGP24 Classification)
 Year on year comparison
Business related to electricvehicles and electrification

Sales are expected to increase year on year due to growth in electrification-related
products such as bus bars, LED-related products, current sensors, etc.

Business related to electronic
information and communications

Despite the possibility of restrained investment in data centers due to concerns over the
economic slowdown, sales are expected to increase year on year due to increased
investment in data centers.

Existing automotive-related
products segment

Although sales increased year on year due to the impact of foreign exchange and thepassing on of steel prices, recovery from the impact of COVID-19 and automobile
production cutbacks in the previous year has been postponed.
FY ended March 2022

Unit: Millions of yen

FY ending March 2023
Previous forecast

Actual(Announced on August 5)

Full-year
forecast

Compared toprevious year

Compared toprevious forecast

Net sales

47,43857,00057,0009,562－

Business related to electricvehicles and electrification

2,036

3,470

3,290

1,254

(180)

Business related to electronic
information and communications

16,66022,23021,560

4,900

(670)

HDD suspensions

10,94816,38014,8203,872(1,560)Printer-related

3,694

3,900

4,250

556

350

Communications-related

1,228

1,290

1,740

512

450

789

660

750

(39)

90

Existing automotive-related
products segment

28,741

31,30032,1503,409

850

Materials-related

6,447

6,750

7,410

963

660

Automotive-related

22,29424,55024,740

2,446

190

Other

20

©SUNCALL CORPORATION All Right Reserved.

Dividend Policy for FY ending March 2023
 FY ending
March 2023

Dividend
Policy
45
40
35
30
25
20
15
10
5
0

Aggressively implement return to shareholders to prevent a buildup of equity capital, in order to promote
return on capital and balance sheet management.

 Dividend payout ratio will be 75% until ROE exceeds 9.0%
(maintain lower limit of dividend at 20 yen)
1,024.3％

280 .0 %(Yen)

38
230 .0 %180 .0 %68.2%
130 .0 %

18

19

20

10

11 26.2%

11

8

9

26.9%

8

56.6%

20

20

27
80.0%

76.1%
11

11

30.0%

-20.0%

9911-70.0%-120.0%FY ended
March 2018

FY ended
March 2019

FY ended
March 2020

FY ended
March 2021

FY ended
March 2022

FY endingMarch 2023

Interim dividend

8 yen

8 yen

9 yen

9 yen

9 yen

11 yenYear-end dividend

10 yen11 yen11 yen11 yen11 yen27 yenTotal annual
dividends

18 yen19 yen20 yen20 yen20 yen38 yen(forecast)**If the earnings forecast is revised going forward, it will be revised in accordance with the dividend policy.

21©SUNCALL CORPORATION All Right Reserved.

Medium- to Long-term
Growth Strategy©SUNCALL CORPORATION All Right Reserved.

Key Strategies and Quantitative Targets of GGP24 (Global Growth Plan 2024)
Acceleration of an effective strategy to create a business portfolio for 2030

Business Strategy
Growth business related to electricvehicles and electrification—Grow sales globally and develop it intonext-generation main business• Offer mass production of bus bars and shunt on bus bars tomeet needs for electric vehicles• Expand sales of products for electric vehicles andelectrification in Europe, China, and the U.S.

Growth business related to electronic
information and communications

Existing business related to automobiles—Achieve dramatic growth and pursue profit growth—Respond to changes in industry structure andimprove earnings strength• Continuously make capital investment and enhance
production efficiency to meet customer demand• Enhance suspension production capacity to meet demand forlarge-capacity hard disk drives• Develop communications- and printer-related products, andimprove production efficiency through process improvements• Validate market growth rate and profitability on an individual
product basis• Focus on improving earnings strength of existing projects bythoroughly managing earnings on an individual product basis• Consider optimizations of production and sales locations

Capital Strategy

Balance sheet managementwith an understanding of appropriate capital structure••

Maintain dividend payout ratio at 75% until ROE exceeds 9% in order to prevent a buildup of equity capital
Investment decisions with a thorough awareness of cost of capital

Net sales

Quantitative
targets of GGP24

Operating income margin

63.0 billion yen 7.1%
23

ROE

9.0%
©SUNCALL CORPORATION All Right Reserved.

Deviation from GGP24 Published Figures
and Status of Each Key Strategic BusinessComparison with Medium-term Management Plan
GGP24 and future outlook
Overall, net sales and operating income targets are expected
to be achieved due to the impact of foreign exchange and thepassing on of steel prices. The status of each businesssegment is as follows.

HDD suspensions
Electric vehicles andelectrification products

Precision functional components
Precision functional materials

OthersCommunications-relatedPrinter-related

Unit: Millions of yen

57,00054,900 Business related to electric vehicles and electrification• In addition to the adoption of bus bars for electric vehicles by
two new Japanese automakers, mass production of shunt on
bus bars began, and the segment performed strong.
⇒In addition to the conventional shunt method, current sensors
finished the development of magnetic sensors and proceeded
to expand sales in Europe and China and to establish a
production system in Japan.

Existing automotive-related products
segment

Business related to electric vehicles andelectrification and business related to electronic
information and communications

57,00031,30031,15025,70024,850

2,000

2,000

2,000

Net Operating
sales income

Net Operating
sales income

Net Operating
sales income

30,40047,43828,741

 Business related to electronic information andcommunications• In the suspension business, orders temporarily declined due toconcerns about the economic recession, mainly in the U.S.
Although demand is forecast to remain sluggish until the firsthalf of FY2023, high demand for nearline large-capacity harddisk drives (HDDs) for data centers continues and is expected
to recover in FY2024.
⇒Strongly promote productivity improvement throughcollaboration with IMES Co., LTD., with which the Company
has formed a capital and business alliance*Japan and Philippines Existing automotive-related products segment• Recovery of automobile production is sluggish. Profits were alsosqueezed due to delays in passing on higher steel prices andcosts.
⇒Promote passing on of steel price hikes and streamlining

24,50018,697649
Net Operating
sales income

FY ending March 2023
FY ended March 2022
FY ending March 2023
(FY2022)(FY2021)(FY2022)
Feb. 14, 2022 forecast at
ActualForecast as oftime of announcement ofAug. 5, 2022
the Medium-termManagement Plan

24

FY ending March 2023
(FY2022)
Current forecast©SUNCALL CORPORATION All Right Reserved.

Our Mission: Next-generation Businesses“Integrated production from materials to products”—Expanding our established technology to target new domains

Optical Communication Business
HDD Suspension Business

Bus Bar BusinessCurrent Sensor Business
Automotive LED BusinessBamboo Charcoal Sustainable Business

Rehabilitation Robot Business
Ultrasonic Sensors (Development)

25©SUNCALL ©SUNCALLCORPORATIONAll Right
Reserved.
CORPORATIONAll Right
Reserved.

Respond to 5G- and IoT-driven Expansion of Data Society
HDD Suspension Business
The HDD suspension business is the pillar of Suncall electronic information and communications
segment. Demand for nearline HDDs will continue to increase in response to significant growth indemand for cloud storage capacity.
P. IMES Corp.

August 2022
Improvement of production technology through capital andbusiness alliance agreement with IMES

Sales in FY2021: 10.9 billion yen
Plan to approximately

double production capacity compared to FY2021

Sales in FY2022: 14.8 billion yen (forecast)
The Company’s production capacity planfor nearline drive HDDs

Data storage capacity demand trends
9,000 65.5%
57.0%
8,000
50.1%
7,000
50.8%
43.9%
6,000
5,000
46.3%
4,000
3,000
2,000
1,000
0

44.5% 70.0%

300

300

60.0%

280

50.0%

200

40.0%

150

30.0%

20.0%

100

100

10.0%
0.0%

0
FY2018HDD

SSD/NAND/ODD/Tape/Others

HDD Share

26

FY2021

FY2024FY2025■ Production capacity setting FY2018 production
capacity level as 100©SUNCALL CORPORATION All Right Reserved.

Respond to 5G- and IoT-driven Expansion of Data Society
Optical Communication Connector Business

The optical communication fiber market requires higher density.
Higherdensity

Data center

FTTH

Higherspeed･ Expansion of locations in North America and Europe
Strengthening of Asian markets

Wireless･ Sales in FY2025:

Sales of optical communication connector
vs. GGP24 (100 million yen)

Global optical connector market forecast
63.1
市場規模【億米ドル】
Marketscale [USD 100 million]

60

30

27.8
GGP24

54.9

Net sales [100 million yen]

Market scale [USD 100 million]70

3.5 billion yen (target)

50

40.3
40

30.2
30
20
10
0

25

見込み
Forecast

20

17.7

15

12.3

26.7

22.6

3.5 billion
yen scalein 2025

19.4

17.4

10
5
0

2016
2016年

2020年
2020

2025年
2025

2021
2021年

2027
2027年

27

2022
2022年

2023
2023年

2024
2024年

2025
2025

©SUNCALL CORPORATION All Right Reserved.

Respond to Climate Change: Electric Vehicle Market Trends

出展：Boston Consulting GroupElectric
vehicles 67%

Electric
vehicles 49%

HV

PEV

Engine-powered
vehicles 50%

Engine-powered
vehicles 84%

EV

Engine-powered
vehicles 66%

Electric
vehicles 30%

Electric
vehicles 17%
Internal combustion
engine vehicles (ENG)

Engine-powered
vehicles 91%

Sales volume [100 million units]

2030, toward a world of electrification

Data source: FOURIN & Marklines

2025

2022

2030

2035

Electric
vehicles28©SUNCALL ©SUNCALLCORPORATIONAll Right
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Respond to Climate Change: Bus Bar Business

Mass production started in 2013. The bus bar business is the pillar of theelectric vehicle business, which has supported Japanese hybrid vehicles.
Shares of new vehicle sales in Japan until 2030 (%)
日本市場では、ハイブリッド車は引き続きシェアを維
BEV
7%
持す
10%
12%
13%
22%
11%

22%

12%

23%

12%

23%

4%

HEV

61%

60%

58%

23%

23%

23%

14%

15%

M

13%

HEV
62%

23%

Gasoline

14%52%

Battery Electric Vehicle (BEV)

Hybrid Electric Vehicle (HEV)

Diesel car

Plug-in Hybrid Vehicles (PHEV)

Mild Hybrid Electric Vehicle (MHEV)

Gasoline car

14%
49%

46%

44%

－ Electrification rate
(market share of electric vehicles/xEVs)

Hybrids will continue to maintain market share in JapanThe share of electric vehicles in new vehicle sales inJapan is expected to exceed 40% by 2025, and reach 55%
by 2030.
In Japan, hybrid electric vehicles (HEVs) alreadyaccounted for 22% of the market share in 2019. In 2030,
they are projected to continue to hold a share of 23%.
(Global share of 7% in 2030)
Sales forecast for bus bar for HEV/EV compared with GGP24(2022-2024)
億(Billionsof yen)

24
2.4
2.2
22

Adoption of new products
for mass production
at two Japanese automobile
manufacturers (EV and HEV
vehicles) from FY2022

1.8
18
1.6
16
1.4
14
1.2
12

2.03

1.97

2.0
20

1.46
1.58

1.67

2.5 billion
yen scalein 2025

2024

2025

1.45

1.0
10

2022

2023
GGP24

29

FY2022 forecast
22年度見通し©SUNCALL CORPORATION All Right Reserved.

Respond to Climate Change: Current Sensor Business

Europe, the U.S., and China—rapid acceleration with adoption in electricvehicles overseas, amid advances in electrification2014 Development of shunt method sensor
2017 Adoption of electric forklifts fordomestic market
2017 Adoption of forklift for the U.S.
market2019 Adoption of NITE testing facilities forlarge-scale battery energy storage
systems
2019 Adoption of HV trucks for domestic
market2020 Adoption of photovoltaic power
storage battery systems
2020 Adoption of AGVs (AutomatedGuided Vehicles) for European
market2021 Adoption of EV racing cars for
Europe2021 Adoption of electric passenger
vehicles for North America
2022 Development of connector type
Development of magnetic sensor
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Respond to Climate Change: Current Sensor Business

We released a new shunt with connector in August 2022. In addition to the shuntmethod, a new method, the magnetic sensor, has been developed.

Released in August 2022.
PCB (substrate) is directly mounted for improved
accuracy. It enables a one-touch connection
without the need for a terminal pin.

Scheduled to be released in December 2022.
This is a revolutionary sensor capable of detecting large currents without
contact using a magnetic method. It achieves eco-friendly sensing with low
power consumption.
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Respond to Climate Change: Current Sensor BusinessWe will solidify the foundation for a global strategy
in regions where electric vehicle adoption has advanced.
2023: Line expansion to new site
Increase production capacity by
1.8 times

September: North America
Exhibition
2023: Establishment ofsales office (underplanning)

2020: Shunt Sales Expansion Officeestablished at SGT (Suncall
Guangzhou Trading Co., Ltd.)

Further expansion of capacity
line(Millions of yen)

1,200
1,100
1,000
900
800
700
600
500
400
300
200
100
0

Current sensor sales (2022-2024)

1 billion yen scale 1,046
2022
June: Exhibit at Battery Show
November: Exhibit at Electronica show
376

2023
23年

2022
22年

*Currently selecting a domestic
production line

32

2023
April: Plans to establish a sales
company, Suncall Europe, in Germany

231

GGP24

32

2024
24年

Forecast
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Respond to Climate Change: LED BusinessNew business with mass production starting in 2021; contributed to the realization of smaller
and thinner LEDs.
LEDs have been spreading rapidly in the automotive-related products segment in recent years. They are already inuse not only in luxury and mass-market vehicles, but also in vehicles for emerging markets.
Interior/Exterior

LED
LED基板
substrates

LED package
manufacturers

Automobile
manufacturers

Various types of module
DRL▲Suncall products

Metering systems

 Successful mass production of automotive LED substrates
 Estimated 2025 sales: 1 billion yen(Billion units)

Global Automotive LED Package Market Forecast(Billions of yen)

700.0

2,400.0600.02,200.0500.02,000.0400.0

1,800.0300.01,600.0200.0

1,400.0

100.0

1,200.0

1,000.0

2016

2017

2018
Estimate

2019
Forecast

33

2020
Forecast

2021
Forecast

2025
Forecast©SUNCALL©SUNCALL CORPORATIONCORPORATION All
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Contribute to an Aging Society: Rehabilitation Robot Business©SUNCALL CORPORATION All Right Reserved.

As one of the COI projects of the Ministry of Education, Culture, Sports,
Science and Technology, we developed a robot that helps patients learn to walkthrough joint research and development with Kyoto University.

Launched as a nursing care equipment model in 2020 and a new wirelesstablet type in 2022.
Mounting image

The robot has been adopted and well received by not only rehabilitation
centers across Japan but also senior and other care facilities.

◇ We are planning to further expand our services.
We support people in their determination to walk.

SportsNursingcare

Medicalcare

BeautyScene of rehabilitation using Orthobot(Wireless tablet type)

Industrial
assistance

34©SUNCALL CORPORATION All Right Reserved.

[Notice]
The materials for today’s briefing include statements regarding the Company’s
performance outlook and future plans and policies. Please ensure that you comply
with the Financial Instruments and Exchange Act and other laws and regulations
when trading stock, etc. In addition, forward-looking statements in the materials areprepared based on currently available information and include factors of known andunknown risks and uncertainty. Accordingly, the Company’s actual performance,business activities, and financial position may differ significantly from thesestatements. Please note that the Company has no obligation to announce or disclose
updates or revisions to these forward-looking statements.

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