Financial Results Briefing
for the Six Months ended
September 2023
December 21, 2023

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 2023
III. Forecast for
FY ending March 2024
IV. Medium- to Long-term
Growth Strategy©SUNCALL CORPORATION All Right Reserved.

I.

AGENDA

Company Outline

II. Summary of Financial Results
for the Six Months ended
September 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)

3©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, Standard Market

Number of employees : 2,274 (Consolidated)
706 (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.
15.4%

(As of September 30, 2023)
4©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

5©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

6©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.

6.0 billion yen
scale in FY2026

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
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.

0.6 billion yen
scale in FY2026

Current sensors

Shunt sensors/magnetic sensors
Installed in domestic HV trucks and forklifts.
In addition to the shunt system, started
mass production of magnetic sensors
equipped with excellent magnetic detection
IC ;’’TMR’’ in May 2023.

2.3 billion yen
scale in FY2026
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 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

8©SUNCALL CORPORATION All Right Reserved.

Domestic and Overseas Bases

16 bases in Japan
Headquarters

Kyoto, Kyoto

18 overseas bases in 8 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

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 communicationrelated components (sales base)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

Sales offices

ChinaTokyo 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

Capital and business alliance
IMES Co., LTD.
(Investment ratio: 41.5%)

Goods produced

Fujisawa, Kanagawa

9©SUNCALL CORPORATION All Right Reserved.

I.

AGENDA

Company Outline

II. Summary of Financial Results
for the Six Months ended
September 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 the Six Months ended September 2023

A recovery trend in automobile production, combined with growth in EV-related products,
led to sales recovery in the automotive-related products segment.
In the electronic information and communications segment, however, restrained
investment in data centers continued to affect sales, mainly in HDD suspensions.

Net sales: 25,169 million yen (-1,644 million yen/-6.1% YoY)
Operating loss: -1,406 million yen (-1,877 million yen/－% YoY)
EV-related productsElectronic information andcommunications segment

Existing automotiverelated products segment

Sales: +48.4% YoY

Sales: -38.1% YoY

Sales: +12.1% YoY

 HDD suspensions, communications-related
Sales decreased by 49.0% year on year due to thecontinued impact of restrained investment in data centers.
 Printer-related
Sales decreased by 8.0% year on year due to market
downturn.
 Communications-related
Sales decreased by 11.0% year on year due to thecontinued impact of restrained investment in data centers.

 Materials-related, automotive-related
Sales increased by 10.6% year on year
due to recovery in automobile production.
 Automotive-related
Sales increased by 12.6% year on year
due to recovery in automobile production.

 Sales increased by 48.4% year on
year due to increases in bus bars
and LED-related products.

11©SUNCALL CORPORATION All Right Reserved.

Summary of Financial Results for the Six Months ended September 2023

Net sales

With the easing of the semiconductor shortage, etc., the automotive market has been on a recovery trend. Net sales in
EV-related products and the existing automotive-related products segment increased year on year. Overall sales
decreased by 6.1% year on year, however, due to lower sales in the electronic information and communications segment.



OperatingincomeAn operating loss of 1,406 million yen was recorded. This was due to higher expenses in preparation for increased
production of new models and higher legal fees and other expenses for effective defensive measures in response tolitigation, as well as lower sales of HDD suspensions.



Ordinary
incomeAn ordinary loss of 834 million yen was recorded, despite foreign exchange gains of 400 million yen, dividend income of
73 million yen, share of profit of entities accounted for using equity method of 49 million yen, and gain on sale of scraps o f
88 million yen.

Unit:
Millions of yen

Six months ended
September 2022

Six months ended September 2023

ActualActualYoY changes

26,81325,169(1,644)-6.1%

Operating income

471(1,406)(1,877)－

Ordinary income

882

(834)

(1,716)－

Net income

572

(681)

(1,253)－

Income per share

19.05(22.66)

Average exchange
rate

134.0 yen/dollar

141.0 yen/dollar

138.7 yen/euro

153.4 yen/euro

Net sales

12©SUNCALL CORPORATION All Right Reserved.

Changes in Business Performance for the Six Months ended September 2023
Year-on-year comparison

 EV-related products

Sales and income grew on sales expansion of bus bars and LED-related products, etc.

 Electronic information andcommunications segment

Income decreased due to lower sales of HDD suspensions and communication-related products, and also due tohigher legal fees and other expenses for effective defensive measures in response to litigation concerning HDD
suspensions.

 Existing automotive-related
products segment

Sales increased due to a recovery trend in automobile production. Income increased compared to the six months
ended September 2022, during which there had been a delay in the pass-through of steel price hikes.

Changes in quarterly business performance
Net sales

13,991

12,821

13,984398

12,601

13,455
11,713

395
3.1%

Q1

Operating income margin

Operating income

73
Q2

2.8%
0.5%

Q3

Q4

Q1

FY ended
2023年3月期
March 2023

Q2

FY ending March 2024
(562)(528) -3.9%

-4.5%

-7.5%

(878)
13

©SUNCALL CORPORATION All Right Reserved.

Net Sales and Operating Income by Business Segment for the Six Months
ended September 2023
Year-on-year comparison

 EV-related
products

 Electronic
information andcommunications
segment<Net sales>

Sales increased by 37.3% year on year due to a significant increase in sales of bus bars, LED-related products, etc.

<Operating income>Achieved profitability through steady growth backed by strong demand.

<Net sales><Operating income> Existing<Net sales>
automotive-related
products segment <Operating income>Net sales and operating income
by product category(Unit: Millions of yen)

HDD suspensions

Sales decreased by 49.0% year on year due to the continued impact of restrained investment indata centers.

Printer-related

Sales decreased by 8.0% year on year due to declining demand.

Communicationsrelated

Sales were maintained in North America through sales expansion. Sales declined in Asia. Overallsales decreased by 11.0% year on year.

A loss was recorded. This was due to higher expenses related to increased production of new models of HDD
suspensions and higher legal fees and other expenses for effective defensive measures related to litigation, as well as
lower sales.
Materials-related

Sales increased by 10.6% year on year due to recovery in automobile production.

Automotive-related

Sales increased by 12.6% year on year due to recovery in automobile production.

Profitability was restored as income improved year on year due to recovery in automobile production.

Six months ended September
2022

Six months ended September 2023

ActualYoY changes

ActualNet sales

Operating income

Net sales

Operating income

Total (consolidated)

26,813471

25,169(1,406)(1,644)-6.1%(1,877)-

EV-related products

1,296

(276)

1,923

5

+627

+48.4%+282-

Electronic information andcommunications segment

10,684

1,093

6,615

(1,559)(4,068)-38.1%(2,652)-

HDD suspensions

7,808

-

3,986

-

(3,822)-49.0%--

Printer-related

1,852

-

1,703

-

(148)

-8.0%

-

-

Communications-related

760

-

676

-

(83)

-11.0%

-

-

Other

262

-

248

-

(13)

-5.3%

-

-

14,832(345)

16,630146+1,797+12.1%+492-

Materials-related

3,506

-

3,876

-

+370

+10.6%--

Automotive-related

11,326-

12,753-+1,427+12.6%--

Existing automotive-related
products segment

14

Net sales

Operating income©SUNCALL CORPORATION All Right Reserved.

Consolidated Balance Sheet for the Six Months ended September 2023
Year-on-year comparison

Increase in noncurrent assets

Property, plant and equipment increased by 656 million yen due to capital investment.
Investment securities increased by 1,249 million yen due to rising stock prices.



Increase in current
liabilities

Accounts payable–trade: -364 million yen; Short-term borrowings: +1,771 million yen;Accounts payable–other: -469 million yen; Accrued expenses: +199 million yenIncrease in net assets

Net income: -681 million yen; Dividends: -273 million yen;
Valuation difference on available-for-sale securities: +870 million yen;
Foreign currency translation adjustment: +1,058 million yen

As of March 31, 2023

As of September 30, 2023

Unit: Millions of yen
ActualCurrent assets

ActualChanges from the end of the previous fiscal year

31,44931,558

+139

+0.4%

Cash and deposits

7,707

7,181

(526)

-6.8%

Trade receivables

10,941

11,652

+711

+6.5%

Inventories

10,813

11,312

+498

+4.6%

Non-current assets

32,28634,323+2,037+6.3%

Total assets

63,73565,912+2,176+3.4%

Total liabilities

25,696

26,897+1,200+4.7%

21,32422,558+1,234

+5.8%

8,663

10,263+1,600＋18.5%

4,372

4,338

(33)

-0.8%

2,368

2,367

(0)

-0.0%

Total net assets

38,03839,014

+975

+2.6%

Total liabilities and net assets

63,73565,912+2,176+3.4%

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 2023
 Cash flows fromoperating activities

Cash flows from operating activities decreased by 1,344 million yen year on year due to a decrease in
net income before income taxes.

 Cash flows frominvesting activities

Cash flows from investing activities increased by 558 million yen year on year due to the impact of
capital participation in IMES in the previous year.

 Cash flows fromfinancing activities

Cash flows from financing activities increased by 1,041 million yen year on year due to an increase inborrowings.

Unit: Millions of yen

Six months ended
September 2022

Six months ended September 2023

ActualActualYoY changes

Cash flows from operating activities

2,213

869

(1,344)

Net income before income taxes

897

(851)

(1,748)Depreciation

1,963

2,028

+65

Decrease (increase) in trade receivables

(907)

(442)

+464

Decrease (increase) in inventories

(881)

106

+987

Increase (decrease) in trade payables

1,123

(463)

(1,586)

Decrease (increase) in other current assets

176

704

+528

Increase (decrease) in other current liabilities

(52)

129

+182

Cash flows from investing activities(3,176)(2,617)+558

Purchase of non-current assets(1,434)(2,537)(1,103)Purchase of investment securities(1,719)0+1,719(270)

932+1,203

Increase (decrease) in short-term borrowings

443

1,485

+1,041

Increase (decrease) in long-term borrowings

(274)

(185)

+88

Cash flows from financing activities

16©SUNCALL CORPORATION All Right Reserved.

Capital Expenditure and Depreciation for FY ending March 2024

 FY ending March 2024

Total capital expenditures of 7.0 billion yen are expected to be made.

Capital expenditure and depreciation(Millions of yen)

Capital expenditure

Depreciation
7,000

5,978

4,278

4,079

3,937

3,827

4,500

4,203

1,722

FY ended Mar. 2021
ActualFY ended Mar. 2022
ActualFY ended Mar. 2023
Actual2,028

FY ending Mar. 2024
Forecast*Capital expenditure above is on a completion basis.

17©SUNCALL CORPORATION All Right Reserved.

I.

AGENDA

Company Outline

II. Summary of Financial Results
for the Six Months ended
September 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
Significant underachievement against the Medium-term Management Plan GGP24
Compared with Medium-term Management Plan GGP24Net sales

Automobile production is on a recovery trend, bringing growth in EV-related products and in the existing automotive-related products
segment. Due to lower sales in the electronic information and communications segment affected by restrained investment in data
centers, however, overall sales are expected to fall short of the Medium-term Management Plan GGP24 by 12.3% (excluding foreignexchange impact of +3.13 billion yen, the shortfall on the Medium-term Management Plan GGP24 is expected to be 17.6%).

OperatingincomeExpected to be below the Medium-term Management Plan GGP24 by 6.0 billion yen (excluding foreign exchange impact of +0.77
billion yen, the shortfall on the Medium-term Management Plan GGP24 is expected to be 6.77 billion yen). This is due to the failure to
improve profitability in the existing automotive-related products segment, decreased income due to lower sales in the electronic
information and communications segment, higher legal fees and other expenses for effective defensive measures in response tolitigation, and other factors.
FY ended
March 2023

Unit:
Millions of yen

FY ending March 2024

ActualMedium-termManagement
Plan GGP24

Forecast
announced on
Aug. 4

Full year

Full year

Full year

Forecast

Full year

2H

YoY changes

Compared with Mediumterm Management Plan
GGP24

Full year

Full year

53,39959,300ｰ

26,83152,000(1,399)-2.6%(7,300)-12.3%

Operating income

304

3,400

ｰ

(1,194)(2,600)(2,904)ｰ(6,000)ｰ

Ordinary income

848

ｰ

ｰ

(1,266)(2,100)(2,948)ｰｰｰ

Net income

557

ｰ

ｰ

(919)

(1,600)(2,157)ｰｰｰ

Income per share

18.57

ｰ

ｰ

(30.50)(53.18)135.5 yen/dollar

110.0 yen/dollar

ｰ

140.0
yen/dollar

140.5
yen/dollar

141.0 yen/euro

125.0 yen/euro

ｰ

150.0
yen/euro

151.7
yen/euro

Net sales

Averageexchange rate

19

©SUNCALL CORPORATION All Right Reserved.

FY ending March 2024 Net Sales and Operating Income Forecast
by Business Segment
Compared with Medium-term Management Plan GGP24

 EV-related
products<Net sales> Electronic
information andcommunications
segment<Net sales><Operating income><Operating income> Existing<Net sales>
automotiverelated products
segment<Operating income>Net sales and operating
income by segment(Unit: Millions of yen)

Above the Medium-term Management Plan GGP24 by 0.6 billion yen due to steady progress in bus bars and LED-related
products, etc.
Steady progress due to strong demand. Expecting to achieve profitability.
Below the Medium-term Management Plan GGP24 by 9.62 billion yen due to the impact of restrained
HDD suspensions
investment in data centers.
Printer-related
Sales are expected to be sluggish amid declining demand.
Below the Medium-term Management Plan GGP24 by 1.03 billion yen due to the impact of restrained
Communications-related
investment in data centers.
A significant loss is expected. This is due to higher expenses related to increased production of new models of HDD
suspensions and higher legal fees and other expenses for effective defense measures related to litigation, as well as lower
sales of HDD suspensions and communications-related products. Below the Medium-term Management Plan GGP24 by 4.76
billion yen.
Above the Medium-term Management Plan GGP24 by 1.0 billion yen, but excluding foreign exchange
Materials-related
impact, it is expected to be generally in line with the Plan.
Above the Medium-term Management Plan GGP24 by 2.67 billion yen due to a recovery trend in
Automotive-related
automobile production.
Below the Medium-term Management Plan GGP24 by 1.25 billion yen due to deteriorating profitability.

FY ended March 2023

FY ending March 2024

Medium-term Management
Plan GGP24
Operating
Net sales
incomeActualNet sales

OperatingincomeForecast
Net sales

Compared with Medium-termManagement Plan
GGP24
Operating
Net sales
incomeYoY changes

OperatingincomeNet sales

OperatingincomeTotal (consolidated)

53,399304

59,3003,400

52,000(2,600)(1,399)(2,904)(7,300)(6,000)EV-related products

2,970

(495)

3,500

0

4,100

10

+1,130

+505

+600

+10

Electronic information andcommunications segment
HDD suspensions

19,291835

25,7002,100

14,130(2,660)(5,161)(3,495)(11,570)(4,760)12,931-

18,790

-

9,170

-

(3,761)-(9,620)-Printer-related

4,239

-

3,720

-

3,180

-

(1,059)

-

(540)

-

Communications-related

1,563

-

2,270

-

1,240

-

(323)

-

(1,030)-Other
Existing automotive-related
products segment
Materials-related

746

-

920

-

540

-

(206)

-

(380)

-

31,137(34)

30,1001,300

33,77050+2,633+84+3,670(1,250)

7,430

-

7,000

-

8,000

-

+570

-

+1,000-Automotive-related

23,706-

23,100-25,770-+2,064-+2,670-20©SUNCALL CORPORATION All Right Reserved.

Dividend Policy for FY ending March 2024
 Financial andCapital Strategies

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

 Dividend Policy

Dividend payout ratio will be 75% until ROE exceeds 9.0%
(Maintain lower limit of dividend at 20 yen for the FY ending March 2024)40
2 80 .0 %

35

(Yen)

1,024.3％

2 30 .0 %107.7%

30

1 80 .0 %

25
20
15

10
5

18

19

10

11

20

20

20

20

1 30 .0 %20
8 0. 0%

8

11

11

56.6%

26.2%

26.9%
8

11

9

68.2%

9

10

3 0. 0%-20 .0 %

9

9

11

10

0

-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 for the current period is revised, dividend amounts will also be revised based on the dividend
payout ratio. We have not yet decided if the lower limit of dividend will be maintained in the FY ending March 2025.

21©SUNCALL CORPORATION All Right Reserved.

I.

AGENDA

Company Outline

II. Summary of Financial Results
for the Six Months ended
September 2023
III. Forecast for
FY ending March 2024
IV. Medium- to Long-term
Growth Strategy©SUNCALL CORPORATION All Right Reserved.

Business Strategy and Quantitative Targets of GGP24(Global Growth Plan 2024)

GGP24 Business Strategy Policy
Acceleration of an effective strategy to create a business portfolio for 2030 that enables
sustainable growth
Accurately identify business opportunities and growth areas in each business. Make highly effective investments with an awareness of cost of capitalwhile ensuring profitability in areas of prior investment.

B usiness Strategy

Recent Developments in Each Business

1. Business related to electric vehicles andelectrification

Making progress in securing future orders; incurring costs arisingfrom these efforts.

Grow sales globally and develop it into nextgeneration main business

2. Business related to electronic information andcommunications

Investment in data centers remains restrained. Sales of HDD
suspensions and communications-related products are expected torecover from FY2024 onward.

Achieve dramatic growth and pursue profit growth

A recovery has been underway as supply constraints such as
semiconductor shortages have eased. However, sales havedeclined due to a sluggish North American market and weak salesof Japanese automobile manufacturers in the Chinese market.

3. Existing automotive-related products segment
Respond to changes in industry structure and improveearnings strength

C apital Strategy

FY2023• Investment decisions with a thorough awareness of cost of capital• Balance sheet management with an understanding of appropriate
capital structure• Maintain dividend payout ratio at 75% until ROE exceeds 9% inorder to prevent a buildup of equity capital

Full year earnings forecast
Medium-term Management
Plan GGP24
Deviation from theMedium-term Management
Plan

Quantitative targets of GGP24
FY2024

Net sales

Operatingincome marginROE

63.0 billion
yen

7.1%

9.0%

Net sales

Operating income

52.0 billion yen(2.6) billion yen

59.3 billion yen

3.4 billion yen(7.3) billion yen(6.0) billion yen

There have been major market changes in each segment thatwere initially envisioned and results are deviating significantly
from GGP24 targets. Revised forecasts will be issued.
23©SUNCALL CORPORATION All Right Reserved.

Three-year Forecast for FY2024 to FY2026
Medium-term Management Plan GGP24 targets not expected to be achieved;
operating income to improve from FY2024 onward FY2024 Medium-term Management Plan GGP24 vs. FY2024 forecast

 FY2025 onward

Net sales are expected to increase due to strong performance in the bus bar business.
GGP24 income target is not expected to be met due to upfront investment costs EV-related products The
arising from efforts to increase production capacity and establish new development base
aimed at expanding bus bar and current sensor businesses.
 Electronic
The impact of restrained investment in data centers is expected to ease, gradually giving
way to resumed expansion in the market. Due to litigation-related expenses, however,information andboth net sales and operating income are expected to significantly fall short of GGP24
communications
targets in FY2024 (exchange rate impact on net sales +3.1 billion yen).
segment
Net sales are expected to meet the GGP24 sales target due to exchange rate impact as Existing
well as the recovery trend in automobile production. Income is expected to fall short ofautomotive-related the GGP24 target but will eventually improve and get closer to the target (exchange rate
products segment impact on net sales +2.7 billion yen).
Net sales and operating
income by segment(Unit: Millions of yen)

FY2023Medium-term Management
Plan GGP24

Net sales

OperatingincomeFY2024
Medium-termManagement Plan GGP24

Forecast
Net sales

OperatingincomeNet sales

OperatingincomeForecast
Net sales

OperatingincomeProfitability due to growth in the bus bar
and current sensor businesses.

Turning profitable in FY2025 as sales
recover.

Although automotive-related business is
on a downward trend, we will continue toimprove profitability and secure profits.

FY2025

FY2026

Forecast

Forecast

OperatingincomeNet sales

Net sales

FY2024
GGP24 vs forecast

OperatingincomeNet sales

OperatingincomeTotal (Consolidated)

59,3003,400

52,000(2,600)63,0004,500

61,00020

67,1001,990

73,7003,770(2,000)(4,480)EV-related productsElectronic informationand communications
segment

3,500

0

4,100

10

3,900

360

4,200

(350)

6,800

200

11,700

1,270

+300

(710)

25,7002,100

14,130(2,660)29,1002,640

21,800(830)

26,800520

29,5001,450(7,300)(3,470)HDD suspensions

18,790

－

9,170

－

21,500－15,700－19,100－21,400－(5,800)－Printer-related
Communicationsrelated

3,720

－

3,180

－

3,800

－

3,100

－

3,200

－

3,300

－

(700)

－

2,270

－

1,240

－

2,700

－

2,500

－

3,900

－

4,200

－

(200)

－

Other

920

－

540

－

1,100

－

500

－

600

－

600

－

(600)

－

30,1001,300

33,77050

30,0001,500

35,0001,200

33,5001,270

32,5001,050+5,000

(300)

7,000

－

8,000

－

7,150

－

8,900

－

8,700

－

8,800

－

+1,750－23,100－25,770－22,850－26,100－24,800－23,700－+3,250－Existing automotiverelated products
segment
Materials-related
Automotive-related
Average exchange rate

110.0 yen/dollar

140.5 yen/dollar

110.0 yen/dollar

130.0 yen/dollar

125.0 yen/euro

151.7 yen/euro

125.0 yen/euro

140.0 yen/euro

24©SUNCALL CORPORATION All Right Reserved.

Future Outlook for Business Segments toward 2030
Existing automotive-related
products segment

Existing products (valve springs, wire for valve spring, ring gears, etc.)

Growth business related to electronic
information and communications

Hard disk drive suspensions, printer-related products, communicationsrelated products, others

Growth business related to electricvehicles and electrification

Products related to electric vehicles and electrification(bus bars, current sensors, etc.)

63％
56％

73.8 billion yen

20％

37％

52.0 billion yen

16％

35％
47.4 billion yen

39％

8％

4％

27％
35％

40％

44％

43％

65％

61％
FY2030 Target
FY2026 Forecast
FY2023 Forecast
FY2021 Actual*Percentages represent proportions of net sales

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 IoT-driven Expansion of Data Society
HDD Suspension Business
The pillar of Suncall electronic information and communications segment, which
supports increased cloud storage capacity. After an initial slowdown, the nearline HDD
market is expected to grow steadily through to 2030.

Sales in FY2023: 9.2 billion yen

Sales in FY2026: 21.4 billion yen
Thousand EB

7000

Long-term trends in the nearline HDD market(TSR forecast figures GROSS CAPACITY 2020-2030)

Suspension business sales performance
forecast (2022-2026)
Millions of yen

21,40022,0006000

2022 forecast

5000

20,00019,1002023 forecast
18,0004000

Delayedrecovery in
FY20233000

15,70016,00014,000

2000

1407

12,0001000

12,90010,000

630
0

9,170

8,000

1
CY2020 CY2021 CY2022 CY2023 CY2024 CY2025 CY2026 CY2027 CY2028 CY2029 CY2030

27

2022

2023

2024

2025

2026

©SUNCALL CORPORATION All Right Reserved.

Respond to IoT-driven Expansion of Data Society
Optical Communication Connector Business
The optical communication fiber market requires higher density. From China, Europe,and North America to the global market.

October 2023

Opened European office

March 2023
Launched new product
LCPull-Uniboot

March 2023
Exhibited at OFC 2023
in North America

October 2023
Exhibited at ECOC 2023
from bases in Europe/North
America

2023

Sales in FY2026: 4.2 billion yen (target)

Exhibited at CIOE from
Shenzhen basescale [USD 100 million]
Market
市場規模【億米ドル】

Global世界の光コネクタ市場予測
optical connector market forecast
70

Millions of yen

FOP business sales performance forecast [2022-2026]
4,200

4,500

Market growth rate is 9.2% per year 63.1

60

3,900

4,000

54.9

GGP24

3,500

50

Forecast
見込み

3,000

40.3
30.2

1,500

20

1,560
1,770

1,240

1,000
10

2,700

2,270

2,000

30

4.2 billion
yen scalein 2026

2,500

2,500

40

500

0

2016
2016年

2020
2020年

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

0
2022

28

2023

2024

2025

2026

©SUNCALL CORPORATION All Right Reserved.

Respond to Climate Change: Electric Vehicle Market Trends
292030, toward a world of electrification
2025

2023

2035

Plug-in Hybrid
Vehicles
出展：Boston Consulting
Group
Hybrid Electric
VehiclesData source: FOURIN & Marklines
29

Engine-powered Electricvehicles 48%
vehicles 73%【Data Source : FOURIN ＆Marklines】

Battery Electric
VehiclesEngine-powered Electricvehicles 65%
vehicles 60%

Internal combustion
内燃機関自動車
enginevehiclesEngine-powered Electricvehicles 82%
vehicles 41%

Electric
vehiclesEngine-powered Electricvehicles 29%
vehicles 87%

Sales volume [100 million units]*Electric vehicles = NEV(New Energy Vehicles)

2030©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 the electric 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%

HEV

23%

61%

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

60%

13%

58%

12%

23%

13%

23%

23%

14%

15%

M

HEV
62%

10%

4%

23%

12%

7%

14%

Gasoline

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

14%

52%

49%

Diesel car

46%

44%

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)

Electrification rate
(market share of electric vehicles/xEVs)

Gasoline car

Bus bar business sales performance forecast (2022-2026)(100 million yen)
80

Started mass
production of
new products
for two Japanesemanufacturers(EVs and HEVs) fromFY202270
6160

Forecast
見通し

GGP24

50

44

40
30
20

10

6.0 billion yen
scale in FY2026

22

23

12
2022

2023

2024

4.4 billion
yen scale
2025

30

2026

Selected for new
EV program tostart in FY2025©SUNCALL ©SUNCALLCORPORATIONAll Right
Reserved.
CORPORATIONAll Right
Reserved.

Respond to Climate Change: Bus Bar Business

In April 2023, began mass production using subsidiary SUNCALL Kikuchi
Corporation as a new base.
In October 2023, decided to make a large-scale investment in the SUNCALL
Hirose Plant in Toyota City, Aichi Prefecture.

Kyoto Head Plant★2023
New bus bar basedevelopment

Ueda Sales
OfficeSouth Kyoto
New development base Plant

Kita-Kanto Sales Office

Nishi-Nihon
Sales Office

SUNCALL Engineering Corporation
Tokyo Sales Office
Kofu (New production base)Hamamatsu Sales Office★Large-scale investment decision in 2023

Toyota Plant

Hirose Plant

Nagoya Sales Office
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 electrification

32

2014 Development of shunt resistancemethod 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 solar power storage
battery systems
2020 Adoption of AGVs (Automated Guided
Vehicles) for European market
2021 Adoption of EV racing cars for
Europe2021 Adoption of electric passenger
vehicles for North America
2022 Development of connector type2023 Development of magnetic sensor
Start of mass production for domestic
market©SUNCALL ©SUNCALLCORPORATIONAll Right
Reserved.
CORPORATIONAll Right
Reserved.

Respond to Climate Change: Current Sensor BusinessIn addition to the shunt resistance-method already in mass production for EVs, including foroverseas markets, we developed the magnetic sensor, a new method, in February 2023. We havealso completed development of a dual method sensor, of which mass production has begun.

Shunt resistance-method
Detection components using shunt resistors.
A unique manufacturing method based on ourwelding technology. Guaranteed resistancevalues enable high-precision detection.

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

Dual method (DUAL Sensing)Completed development in October.
A dual-method sensor that combines ashunt resistance-method and amagnetic method. For future electricvehicles that require high reliability.

Magnetic Analog-type

Magnetic Digital-type

Completed development inReleased in February 2023.
Adopted from November for quick charging. October 2023.
Developed in partnership with U.S. venture CROCUSHigh value-added sensor withTECHNOLOGY( acquired by Allegro Microsystems in 2023)
CAN communication.
A contactless detection solution using advanced magnetic ICs.
It achieves eco-friendly sensing with low power consumption.
33©SUNCALL ©SUNCALLCORPORATIONAll Right
Reserved.
CORPORATIONAll Right
Reserved.

Magnetic method

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 business sales performance
forecast (2022-2026)
電流センサー売上(22年－24年）(Millions of yen)

2,500
2,500
百万円

25002,260

2.3 billion
yen scale
25億円規模

2,000
2,000

2023
June: Exhibit at Battery
Show
July: Decided to establish asales company, Suncall
Europe, in Germany

1,500
1,500

New EV product development base

10億円規模 1,046

1,000
1,000
500 500

0.6 billion yen scale
190

231

370

376

Opened Munich office in 2023

620
300

0

0
2022
22年 22年

2023
23年

2024
23年 24年

GGP24
GGP24

Shino Industrial Park , Kameoka City
(Conceptual image of completed construction)

34

34

2025
24年25年

2026
26年
25年

見通し
見通し
Forecast©SUNCALL CORPORATIONAll Right
Reserved.
©SUNCALL CORPORATIONAll 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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