Financial Results Briefing
for FY ended March 2023
June 6, 2023

C

o

d

e

:

5

9

8

5

©SUNCALL CORPORATION All Right Reserved.

I.

AGENDA

Company Outline

II. Summary of Financial Resultsfor FY ended March 2023
III. Forecast for
FY ending March 2024

IV. Medium- to Long-term
Growth Strategy©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 Germany

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)

2©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 : 2,261 (Consolidated)
663 (Non-consolidated)

Major shareholders: The Master Trust Bank of Japan, Ltd.
(Retirement Benefit Trust Account/
Kobe Steel, Ltd. Account)
16.6%
Marubeni-Itochu Steel Inc.
15.4%

(As of March 31, 2023)
3©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

4©SUNCALL CORPORATION All Right Reserved.

Suncall Precision Components Are Used in Variety of Applications
Automotive-related Products Segment
Materials-related business/copper wire forvalve 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.

 Valve springs

 Valve cotters
 Ring gears/drive plates

Top-class market share in Japan.
Integrated production from materials toprocessing enables high-quality andhigh-durability that can withstand
100 million compressions.
Top-class market share in Japan.
Our proprietary metal processing technology
achieves high precision.

Spiral springs for seatbelts

 Boot clamps
Safetycomponents
We achieve comfort by enabling
calibration of precision torques by
manufacturing from materials.

 Transmission springs
Parts for anti-lock brakesystem (ABS) Various springs and rings

5©SUNCALL CORPORATION All Right Reserved.

Suncall Precision Components Are Used in Variety of Applications
Products Related to Electric Vehicles and Electrification

Motor cores/stator cores
Components that form the core of the
motor. We achieve high productivity
through automated integrated
production. Installed on vehicles bydomestic automakers.

4.0 billion yen
scale in FY2025

Reactor coils

Bus bars

Boosting coils for electricvehicles and hybrid vehicles.
Installed on current hybrid
vehicles by domestic
automakers.

Parts that supported hybrid vehicles since 2013.
We offer long and customized products that noother company can offer. Chosen for installationin domestic electric vehicles.

Bus rings

Current sensors

Wiring rings developed withplastic processing technology.
Significantly simplifies motor
wiring work.

Shunt on bus bars

High-precision measurement of highcurrent flowing through the bus bar.
Integrated sensor with shunt system.
Installed in electric vehicles by North
American and European automakers.

*Design not publicly available

LED components
Started mass production in 2021.
Realized miniaturization andthinning of LEDs.

1.0 billion yen
scale in FY2025

Shunt sensors/magnetic sensors

Installed in domestic HV trucks and forklifts.
In addition to the shunt system, mass
production of a new magnetic sensor started
in May 2023.

2.5 billion yen
scale in FY2025
6©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 shareof long, lightweight, and highprecision shafts
Rollers

Communications-related
products

Torque limiters
Spring clutches

Optical connectors
Optical adaptors

Printer
HDD

HDD suspensions

Data Center

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

7©SUNCALL CORPORATION All Right Reserved.

Domestic and Overseas Bases

15 bases in Japan
Headquarters

18 overseas bases in 8 countries

Kyoto, Kyoto

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

Shenzhen

100%

Hong Kong

100%

Printer rollers, optical communications
components, etc.

Thailand

Chonburi

100%

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

Vietnam

Hanoi

100%

Printer rollers, etc.

South Korea

Yangsan49%

Materials for spiral springs for seatbelts

Philippines

Manila100%

HDD suspensions (Representative Office)Germany

Munich100%

EV-related, optical communication-related
components (sales base)Production bases
Head Plant

U.S.A.

Kyoto, Kyoto
South Kyoto Plant
Toyota Plant
Hirose Plant

Toyota, Aichi
MexicoToyota, Aichi

Domestic subsidiaries
SUNCALL Engineering
Corporation

Minami-Alps, Yamanashi

SUNCALL Kikuchi
Corporation

Kikuchi, Kumamoto

China

Sales offices

Tokyo Branch

Yokohama, Kanagawa

Nagoya Branch

Toyota, Aichi

Nishi-Nihon Branch

Kyoto, Kyoto

Ueda Sales Office

Ueda, Nagano

Kita-Kanto Sales Office

Utsunomiya, Tochigi

Hamamatsu Sales OfficeHamamatsu, Shizuoka

Kinki Sales Office

Kyoto, Kyoto

Nishi-Nihon Sales Office

Hiroshima, Hiroshima

Goods produced

Company name

IMES Co., LTD.

Headquarters

Fujisawa-shi, Kanagawa

Investment ratio

41.5%

Overseas bases

Philippines, Thailand

8©SUNCALL CORPORATION All Right Reserved.

I.

AGENDA

Company Outline

II. Summary of Financial Resultsfor FY ended March 2023
III. Forecast for
FY ending March 2024

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

Key Points: Financial Results for FY ended March 2023

While net sales increased on foreign exchange effects, operating income
decreased due to delayed recovery in automobile production and shortfall onsales plan for HDD suspensions from the second half.

Net sales: 53,399 million yen(+5,960 million yen/+12.6% YoY/of which, foreign exchange impact: +5,617 million yen)

Operating income: 304 million yen(-345 million yen/-53.1% YoY)
Electronic information and communications segment

Automotive-related products segment

Sales: +18.0% YoY

Sales: +10.2% YoY
 Materials-related
Sales increased year on year due to price passthrough of steel price hikes at Mexican subsidiary andforeign exchange effects.
 Automotive-related
Sales increased year on year due to an increase inelectrification-related products, etc., despite impact of
reduced automobile production due to lockdowns in
China and semiconductor shortages.

 HDD suspensions
Sales increased year on year due to foreign exchange
effects, despite impact of restrained investment in data
centers amid concerns of recession.
 Printer-related
Sales decreased from the previous fiscal year, which saw arise in special demand from households due to the transition
to remote work, but increased from the second half.

 Communications-related
Sales increased due to a recovery in demand in North
American and Asian markets and new sales expansion.
10©SUNCALL CORPORATION All Right Reserved.

Summary of Financial Results for FY ended March 2023
 Year-on-year comparison

Net sales

In the automotive-related products segment, while the recovery of production has stagnated, net sales increased
due to price pass-through of steel price hikes as well as the effect of the weaker yen. Sales of HDD suspensions
were up year on year due to weaker yen and high demands in the first half, despite restrained investment amid
concerns of recession.

Operating income

Operating income decreased 53.1% due to steel price hikes, higher energy and transportation costs, higher
expenses in preparation for increased production of new HDD suspension models, and litigation-related legal feesand other expenses.

Ordinary income

Gain on equity method investment: +117 million yen, foreign exchange gains due to weaker yen: +77 million yen

Net income

Compensation expenses for Mexican subsidiary: -1,838 million yen, insurance claim income: +1,318 million yen,gain on sale of investment securities: +224 million yen

FY ended
March 2022
Unit:
Millions of yen

FY ended March 2023
Initial forecast

Actual(disclosed in May
2022)

Forecasts
announced on
Feb. 10

YoYchanges

ActualCompared toinitialforecast

Compared toforecast
announced on
Feb. 10

Net sales

47,43857,00053,00053,399+5,960(3,601)+399

Operatingincome

649

2,000

600

304

(345)

(1,696)(296)

Ordinary
income

1,022

2,100

1,300

848

(173)

(1,252)(452)

Net income

904

1,500

1,000

557

(347)

(943)

(443)

Income per
share
Averageexchange rate

 Main factors for deviation from forecast announced on
February 10

29.34

49.96

33.29

18.57

112.4 yen/dollar

120.0 yen/dollar

134.9 yen/dollar

135.5 yen/dollar•••

130.6 yen/euro132.0 yen/euro

138.9 yen/euro

141.0 yen/euro

•
•

11

Insufficient price pass-through of higher energy costs
Legal fees for litigation concerning HDD suspensions, etc.
Increase in expenses to prepare for increased production of
new HDD suspension models
Decrease in equity in earnings of affiliates
Foreign exchange losses in Q4©SUNCALL CORPORATION All Right Reserved.

Changes in Business Performance for FY ended March 2023
 vs Q3
 Net sales

Decrease in orders received due to a delay in recovery of automobile production anddecrease in HDD suspensions amid concerns of recession.

 Operating
incomeImproved in Q3 due to one-time retroactive price pass-through of steel price hikes in theautomotive-related products segment.
Decreased income due to lower sales of HDD suspensions and higher legal fees and otherexpenses related to litigation.
Changes in quarterly business performance
Net sales

Operating
営業利益率income margin

Operating income

13,992
11,776

11,727

12,233

11,703

12,601
3.1%

2.8%
1.3%
0.7%

0.8%
398

323
153
Q1

13,984

12,821

Q2

77
Q3

2.8%

0.5%

395

96

73

Q4

Q1

FY ended
March 2022
2022年3月期

Q2

Q3

Q4

2023年3月期
FY ended
March 2023

-4.5%

(562)
12

©SUNCALL CORPORATION All Right Reserved.

Net Sales by Product Category for FY ended March 2023
 Automotiverelated products
segment

 Electronic
information andcommunications
segment

Materials-related

Sales increased year on year due to impact of foreign exchange rate fluctuations and price passthrough of steel price hikes at Mexican subsidiary.

Despite the impact of reduced automobile production due to the Chinese lockdowns and lingering
Automotive-related semiconductor shortages, sales increased year on year due to a large increase in bus bars andother electrification-related products and LED-related products, etc.
Although high demand for data center investments continued in the first half, concerns about an
HDD suspensions economic recession in the second half affected data-related investments. Overall, sales increased
year on year due to the effect of the weaker yen.
Printer-related

Sales decreased from the previous fiscal year, which saw a rise in demand from households dueto the shift to remote work during the COVID-19 pandemic, but increased from the second half.

Communications- Sales increased year on year due to recovery in demand in the main markets of North America
relatedand Asia and new sales expansion.
Unit: Millions of yen

FY ended March 2022
ActualFY ended March 2023
Actual(Foreign exchange impact)

YoY changes

Net sales

47,43853,399(+5,617)+5,960+12.6%

Automotive-related
products segment

30,77733,918(+2,264)+3,140+10.2%

Materials-related

6,447

7,430

(+934)+983+15.2%

Automotive-related

24,33026,487(+1,329)+2,157+8.9%

Electronic information andcommunications segment

15,781

18,734(+3,348)+2,862+18.0%

HDD suspensions

10,94812,931(+2,431)+1,983+18.1%

Printer-related

3,694

4,239

(+682)+544+14.7%

Communications-related

1,228

1,563

(+234)+334+27.3%

789

746

(+3)

(42)

- 5.4%

Other

13©SUNCALL CORPORATION All Right Reserved.

Consolidated Balance Sheet for FY ended March 2023
 Increase in non-current
assetsProperty, plant and equipment increased by 1,584 million yen due to active capital investment.
Shares of subsidiaries and associates increased by 1,922 million yen, mainly due to capital andbusiness alliance. Sale of investment securities: -761 million yen

 Increase in current
liabilities

Accounts payable–trade: -128 million yen; Short-term borrowings: +2,626 million yen;Accounts payable–other: +1,227 million yen

 Increase in net assets

Net income: +603 million yen; Dividends: -668 million yen;
Valuation difference on available-for-sale securities: -213 million yen;
Foreign currency translation adjustment: +1,263 million yen
As of March 31, 2022

Unit: Millions of yen

Current assets

As of March 31, 2023

ActualChanges from the end of theprevious fiscal year

Actual

28,32831,455+3,127

Cash and deposits

7,510

7,707

+197

Trade receivables

11,076

10,941(135)

Inventories

8,463

10,813+2,350Non-current assets

29,60232,286+2,681

Total assets

57,932

63,735+5,803

Total liabilities

20,74925,696+4,946

17,471

21,324+3,853

6,031

8,663

+2,632

3,278

4,372

+1,093

1,186

2,368

+1,181

Total net assets

37,182

38,038+856

Total liabilities and net assets

57,932

63,735+5,803Current liabilities
Interest-bearing liabilities
Non-current liabilities
Interest-bearing liabilities

14©SUNCALL CORPORATION All Right Reserved.

Status of Cash Flows for FY ended March 2023
 Cash flows fromoperating activities

Cash flows from operating activities decreased by 1,478 million yen year on year due to a decrease in net income
before income taxes and an increase in VAT paid for Mexican subsidiary compensation case.

 Cash flows frominvesting activities

Cash flows from investing activities was -4,946 million yen, a decrease of 123 million yen year on year due tocapital investment in HDD suspension and capital participation in IMES.

 Cash flows fromfinancing activities

Cash flows from financing activities increased by 1,626 million yen due to an increase in borrowings for capital
investment and the acquisition of shares of IMES.

Unit: Millions of yen

FY ended March 2022

FY ended March 2023

ActualCash flows from operating activities

ActualYoY changes

3,170

1,691

(1,478)Net income before income taxes

1,431

934

(496)

Depreciation

3,937

4,203

+266

Decrease (increase) in trade receivables

(832)

394

+1,227(1,708)(1,799)(91)

Increase (decrease) in trade payables

954

(363)

(1,317)

Gain on sale of investment securities

(401)

(625)

(223)

Decrease (increase) in other current assets

(141)

(582)

(441)

(4,822)(4,946)(123)(5,237)(4,007)+1,2290(1,719)(1,719)

410

845

+434

1,154

2,780

+1,626

Increase (decrease) in short-term borrowings

3,377

2,440

(937)

Increase (decrease) in long-term borrowings

(691)

1,217

+1,908Purchase of treasury shares

(704)

0

+704

Decrease (increase) in inventories

Cash flows from investing activities
Purchase of non-current assets
Purchase of shares of subsidiaries and associates
Proceeds from sale of investment securities

Cash flows from financing activities

15©SUNCALL CORPORATION All Right Reserved.

Capital Expenditure and Depreciation for FY ended March 2023
 FY ended March 2023

Continued capital expenditures mainly in HDD suspensions, with some completion
delays.

 FY ending March 2024

Planning total capital expenditures of 9.0 billion yen (including 5.4 billion yen for HDD
suspensions).

Capital expenditure and depreciation(Millions of yen)

Capital expenditure

Depreciation

9,000

5,978
4,900
4,278

FY ended Mar. 2021
Actual

4,079

3,937

3,827

4,203

FY ended Mar. 2023
ActualFY ended Mar. 2022
ActualFY ending Mar. 2024
Plan

*Capital expenditure above is on a completion basis.

16©SUNCALL CORPORATION All Right Reserved.

I.

AGENDA

Company Outline

II. Summary of Financial Resultsfor FY ended March 2023
III. Forecast for
FY ending March 2024

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

Forecast for FY ending March 2024
 Year-on-year comparison
Net sales

HDD suspensions are expected to recover from the middle of the fiscal year after investment restraint indata centers due to concerns of recession. In the automotive-related products segment, sales are
expected to increase year on year due to recovery in automobile production and pass-through of pricehikes in steel, energy, and transportation.

Operating income

Income is expected to increase due to improved automotive-related products segment and higher salesof products related electric vehicles.

Ordinary income

Non-operating income is expected to increase by 112 million yen due to equity in earnings of affiliates.

FY ended
March 2023

Unit:
Millions of yen

FY ending March 2024

ActualMedium-termManagement
Plan

Full year

Full year

YoY changes

Compared with
Medium-termManagement Plan

Forecast
1H

2H

Full year

Net sales

53,39959,30027,00031,50058,500+5,101(800)

Operatingincome

304

3,400

(460)

1,110

650

+346

(2,750)Ordinary
income

848

－

(340)

1,290

950

+102

－

Net income

557

－

(240)

1,040

800

+243

－

Income per
share

18.57

－

(7.98)

34.59

26.61

135.5 yen/dollar

110.0 yen/dollar

130.0 yen/dollar

141.0 yen/euro

125.0 yen/euro

140.0 yen/euroAverageexchange rate18

 Main factors of deviation from the Mediumterm Management Plan GGP24•

Lower sales volumes, mainly in electronics
information and communications segment©SUNCALL CORPORATION All Right Reserved.

FY ending March 2024 Net Sales Forecast by Business Segment(Medium-term Management Plan GGP24 Classification)
 Compared with Medium-term Management Plan
Business related to electricvehicles and electrification

Sales are expected to increase compared to the Medium-term Management Plan due toaccelerated growth and strong demand of electrification-related products such as bus bars and
LED components.

Business related to electronic
information and communications

Although HDD suspensions will increase around 2.7 billion yen due to the weaker yen, sales
are expected to decrease around 6.8 billion yen compared to the Medium-term Management
Plan due to the impact of restrained investment for data centers.

Existing automotive-related
products segment

As automotive electrification continues, sales scale will be maintained in line with the Mediumterm Management Plan, excluding foreign exchange impact of around 3.0 billion yen.
FY ended March2023

FY ending March2024

FY ending March
2024

Compared with FY
ended March 2023

Compared with FY
ending March 2024

ActualMedium-termManagement Plan
GGP24

Forecast

Comparedwith actual figures

Comparedwith Medium-termManagement Plan

Unit: Millions of yen

Net sales

53,39959,30058,500+5,101(800)

Business related to electric vehicles
and electrification

2,970

3,500

4,140

+1,170+640

Business related to electronic
information and communications

19,29125,70021,020+1,729(4,680)HDD suspensions

12,931

18,79014,670+1,739(4,120)Printer-related

4,239

3,720

3,850

(389)

+130

Communications-related

1,563

2,270

1,930

+367

(340)

556

920

570

+14

(350)

31,13730,10033,340+2,203+3,240Materials-related

7,430

7,000

7,470

+40

+470

Automotive-related

23,706

23,10025,870+2,164+2,770Other

Existing automotive-related products
segment

19©SUNCALL CORPORATION All Right Reserved.

Dividend Policy for FY ending March 2024
Financial and Capital
Strategies

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%

Dividend Policy
40
35(maintain lower limit of dividend at 20 yen)

(Yen)

2 80 .0 %1,024.3％30

2 30 .0 %107.7%
1 80 .0 %

25

20
15
10
5

18

19

10

11

20

20

20

20

1 30 .0 %

20
75.2%

56.6%
11

11 68.2%

9

10

26.2%

26.9%
8

11

8 0. 0%8

3 0. 0%-20 .0 %

9

9

9

11

0

10

-70 .0 %-12 0 .0 %FY ended
March 2018

FY ended
March 2019

FY ended
March 2020

FY ended
March 2021

FY ended
March 2022

FY ended
March 2023

FY endingMarch 2024
(forecast)*

Interim dividend

8 yen

8 yen

9 yen

9 yen

9 yen

11 yen

10 yenYear-end dividend

10 yen11 yen11 yen11 yen11 yen

9 yen

10 yenTotal annual
dividends

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

20©SUNCALL CORPORATION All Right Reserved.

I.

AGENDA

Company Outline

II. Summary of Financial Resultsfor FY ended March 2023
III. Forecast for
FY ending March 2024

IV. 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%
22

ROE

9.0%
©SUNCALL CORPORATION All Right Reserved.

Future Outlook for Business Segments toward 2030
Growth business related to electric vehicles
and electrification, and growth business related
to electronic information and communications
Products related to electricvehicles and electrification(bus bars, current sensors, etc.)

Hard disk drive suspensions

Optical and printer-related products

OthersExisting automotive-related
products segment
Existing products(valve springs, wire for valve spring, ring gears, etc.)

63.0 billion yen

53.3 billion yen

47.4 billion yen

39％

61％

42％

58％

52％

48％

64％ 36％

FY2030 Target
FY2024 Target

FY2022 Actual
FY2021 Actual*Percentages represent proportions of net sales

23©SUNCALL CORPORATION All Right Reserved.

Progress on Medium-term Management Plan GGP24(Business Related to Electric Vehicles and Electrification andBusiness Related to Electronic Information and Communications)
Progress on Medium-term Management Plan GGP24
for FY2023
Although the weak yen will have a positive impact overall, both net sales
and operating income are expected to fall short of the Medium-termManagement Plan GGP24 targets for FY2023, mainly due to lower sales
volumes in electronic information and communications.

HDD suspensions
Electric vehicles andelectrification products

 Precision functional materials
 Precision functional components

OthersCommunications-relatedPrinter-related

Unit: Millions of yen

59,30060,000 Business related to electric vehicles and electrification

Existing automotive-related products
segment

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

54,900* Figures in parenthesis indicate apercentage of total sales

58,50053,399Compared with FY2023 Medium-term Management Plan GGP24
・ Sales of current sensors including the launch of magnetic sensors grew

50,0005,000

40,0004,000

strongly .
・ Bus bar is adopted for future EV program launching in FY2025 and weplan to expand production base, which will achieve a large increase
compared to the Medium-term Management Plan.

Future outlook and measures
・ The global trend of automotive electrification continues.

3,400

・ Further development of high-value-added sensors and expansion of
product lineup.
・ To expand sales of current sensors, we are considering the
30,000establishment of sales offices in Europe and North America, andpromoting the development and production of current sensors in Japan.

 Business related to electronic information andcommunications

6,000

24,500(44.6%)

2,000

20,000Compared with FY2023 Medium-term Management Plan GGP24

3,000
29,200(49.2%)
25,160(43.0%)
2,000

22,451(42.0%)

・ HDD suspensions and communications-related products fell short ofMedium-term Management Plan targets due to the impact of restrained
10,000investment in data centers, despite the effect of the weak yen.

2,100

Future outlook and measures

900

・ Expecting recovery from mid-FY2023 following temporary drop in orders

due to restrained investment in data centers.
0Net・ In preparation for market recovery, suspension business will drive
売上 Operating
営利
sales
incomeaggressive productivity improvements through collaboration with IMES,
Targets announced inwith which we have formed a capital and business alliance.
・ In the communications-related business, improve productivity and
FY2022 Medium-term
strengthen sales capabilities to increase orders after the market recovers.
Management Plan

24

650

1,000

304
275

Net
Net Operating
売上 Operating
営利
売上
営利
sales income
sales income
Targets announced in
FY2022
FY2023 Medium-term
ActualManagement Plan

210
0
Net
Operating
売上 営利
sales income
FY2023
Forecast©SUNCALL CORPORATION All Right Reserved.

Progress on Medium-term Management Plan GGP24(Existing Automotive-related Products Segment)
Existing automotive-related products
segment
 Precision functional materials
 Precision functional components

Existing automotive-related products
segment
Compared with FY2023 Medium-term Management
Plan GGP24
・ As automotive electrification continues, sales scale wasmaintained in line with the Medium-term Management
Plan, excluding foreign exchange impact of +3.0 billion
yen. However, soaring steel prices and energy andtransportation costs have weighed on profits.

Business related to electric vehicles andelectrification and business related to electronic
information and communications
HDD suspensions
Electric vehicles andelectrification products

59,30060,00054,90030,400(55.4%)

50,00030,100(50.8%)

53,399Measures to improve profitability
・ Pass through higher energy and auxiliary materials
costs
・ Review product strategy from a capital profitability
standpoint・ Consider consolidation of bases to optimize productivity
・ Review allocation of management resources in areas
such as investment and personnel

Unit: Millions of yen* Figures inparenthesis indicate
a percentage of total
sales

58,5006,000

33,340(57.0%)

30,948(58.0%)

5,000

40,000

4,000

3,400

Future outlook and measures
Although the market for internal combustion engine
components is not expected to grow due to theaccelerating automotive electrification, we expect tomaintain sales volume.

OthersCommunications-relatedPrinter-related

30,000

3,000
1,300

2,000

20,000

2,000

1,100
10,000

650

304
0

28

1,000

440

0
Net
Net
Net
Net
売上 Operating
営利
売上 Operating
営利
売上 Operating
営利
売上 Operating
営利
sales
incomesales income
sales
incomesales income
Targets announced inTargets announced in
FY2023
FY2022
FY2022 Medium-term
FY2023 Medium-term
Forecast
ActualManagement Plan
Management Plan

25

©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)

26©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 andcommunications segment. Demand for nearline HDDs will continue to increase in
response to significant growth in demand for cloud storage capacity.
P.IMES Corp.

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

Sales in FY2022: 12.9 billion yen
Plan toapproximately double production capacity compared to FY2021
Sales in FY2023: 14.7 billion yen
Sales expand with market recovery from mid-2023

Data storage capacity trends
9,000.08,000.0

70.0%

65.5%

The Company’s production capacity planfor nearline drive HDDs 300

60.0%

300

50.0%

250

40.0%

200

30.0%

150

20.0%

100

1,000.0

10.0%

50

0.0

0.0%

0

7,000.0

57.0%
50.1%

6,000.0

46.3%

50.8%

47.5%

5,000.0

39.0%
44.7% 43.0%

41.5% 40.2%

4,000.0
3,000.0
2,000.0

CY2017A CY2018A CY2019A CY2020A CY2021A CY2022A CY2023F CY2024F CY2025F CY2026F CY2027F

HDD

SSD/NAND/ODD/Tape/Others

HDD Share

27

280

150
100

FY2018FY2021

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

Wireless･ Expansion of locations in North America and Europe
Strengthening of Asian markets･ Sales in FY2025: 3.5 billion yen (target)

Global optical connector market forecast
Slowdown in 2022. Expected to recover from 2023 2H
60

63.1

30

54.9

Net sales [100 million yen]

Market scale [USD 100 million]

70

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

50
40.3
40
30.2
30

From 2023:
marketrecovery

20

10

27.8
GGP24

25
20
15

26.7

22.6

見込み
Forecast
17.7

12.3

15.6

2021
2021年

2022
2022年

3.5 billion
yen scalein 2025

19.3

10
5

0

0

2016
2016年

2020
2020年

2025
2027
2025年
2027年
 Market 市場規模【億米ドル】
scale [USD 100 million]

28

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
vehicles29©SUNCALL ©SUNCALLCORPORATIONAll Right
Reserved.
CORPORATIONAll Right
Reserved.

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 (%)

Hybrids will continue to maintain market share in Japan

日本市場では､ハイブリッド車は引き続きシェアを維持す
BEV

22%

11%

22%

12%

23%

12%

23%

13%

7%

61%

Battery Electric Vehicle (BEV)
Plug-in Hybrid Vehicles (PHEV)

60%

58%

Hybrid Electric Vehicle (HEV)
Mild Hybrid Electric Vehicle(MHEV)

12%

13%

The 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)

4%

HEV

23%

23%

23%

23%

14%

15%

M

HEV
62%

10%

14%

Gasoline

52%

Diesel car
Gasoline car

14%
49%

46%

44%

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

55

Started mass
production of
new products

Sales forecast for bus bar for HEV/EV
45 compared with GGP24
50
40

GGP24

23年見通しFY2023
forecast

40

35
24

30

for two Japanesemanufacturers(EVs and HEVs) from25

FY202210

4.0 billion yen
scale in 2025

20
25

12.1

20
15

14.5

15.8

16.7

Adoption for new

5
0
2022

2023

2024

30

2025

EV program to startin FY2025©SUNCALL ©SUNCALLCORPORATIONAll Right
Reserved.
CORPORATIONAll Right
Reserved.

Respond to Climate Change: Bus Bar Business

In April 2023, mass production began at SUNCALL Kikuchi
Corporation, a subsidiary in Kyushu.
Making large investments toward 2025.

★NEW

South Kyoto Kofu (New production base)
Plant
Ueda Sales Office
Kyoto Head Plant
Kita-Kanto Sales Office
Nishi-Nihon
Sales Office
SUNCALL Engineering Corporation
Tokyo Sales OfficeHamamatsu Sales Office

Toyota Plant

Nagoya Sales Office Hirose Plant

31©SUNCALL ©SUNCALLCORPORATIONAll Right
Reserved.
CORPORATIONAll 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 resistance –method sensor
2017 Adoption of electric forklifts fordomestic market
2017 Adoption of forklift for the U.S.
market2019 Adoption of NITE testing facilities
for large-scale battery energy
storage systems
2019 Adoption of HV trucks for domestic
market2020 Adoption of solar 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
32©SUNCALL ©SUNCALLCORPORATIONAll Right
Reserved.
CORPORATIONAll Right
Reserved.

Respond to Climate Change: Current Sensor Business

We released a new shunt bus bar with connector in August 2022. In addition to
the shunt resistance-method, a new method, the magnetic sensor, has beendeveloped.

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

Magnetic Sensor
Released in February 2023.
A revolutionary sensor capable of using amagnetic method to detect large currents
without contact. It achieves eco-friendly
sensing with low power consumption.

Dual sensor series
Shunt & magnetic
Dual method sensor that combines shuntand magnetic method .
For future electric vehicles that require
high reliability.
33©SUNCALL ©SUNCALLCORPORATIONAll Right
Reserved.
CORPORATIONAll Right
Reserved.

Respond to Climate Change: Current Sensor BusinessWe will solidify the foundation for a global strategy in regions where electricvehicle 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.)

Current sensor sales (2022-2024)(Millions of yen)

2,500

2500

2.5 billion yen scale

2,000
1,500

Further expansion of capacityline

1 billion yen scale 1,046

1,000
500

231

2022
June: Exhibit at Battery Show
November: Exhibit at Electronica show

376

0
2022
22年

a domestic production site＊under selection

34

2023
23年

2024
24年

GGP24

見通し
Forecast

34

2025
25年

2023
July: Decided to establish a sales
company, Suncall Europe, in Germany©SUNCALL ©SUNCALLCORPORATIONAll Right
Reserved.
CORPORATIONAll Right
Reserved.

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 towalk through joint research and development with Kyoto University.
Launched as a nursing care equipment model in 2020 and a newwireless tablet type in 2022.
The robot has been adopted and well received by not only
rehabilitation centers across Japan but also senior and other carefacilities.

Mounting image◇ We are planning to further expand ourservices.
We support people in their determination
to walk.
SportsNursingcare

Medicalcare

BeautyScene of rehabilitation using Orthobot(Wireless tablet type)

Industrial
assistance

35©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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