Plan to Meet the Criteria for Continued Listing on the New Market Segment December 21, 2021
©SUNCALL CORPORATION All Rights Reserved.

I. Company Outline II. Continued Listing Plan - Status with Regard to Meeting All Criteria and Period of Plan - Basic Policy for Meeting the Criteria for Continued Listing Next Medium-term Management Plan (April 2022–March 202) Outline - Business Strategy - Financial and Capital Strategy - Environmental, Social, and Governance Response l. Company Outline ©SUNCALL CORPORATION All Rights Reserved. 3
(As of September 30, 2021) 4

14 bases in Japan

SUNCALL Engineering Corporation SUNCALL Kikuchi Corporation Sales offices Tokyo Branch Nagoya Branch Nishi-Nihon Branch Ueda Sales Office Kita-Kanto Sales Office Hamamatsu Sales Office Kinki Sales Office Nishi-Nihon Sales Office Toyota, Aichi Kyoto, Kyoto Ueda, Nagano Utsunomiya, Tochigi Hamamatsu, Shizuoka
55 Improving the World through Technology Technology Taking Flight to Create Change Our management philosophy at Suncall is “Technology taking flight to create change,” and the 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
Printer components Torque limiters Spring clutches Communications-related components connectors HDD HDD suspensions Electronic information and communications seqment Precision functional materials Valve spring wire Precision functional components Spiral springs Reactor coils components related products seament Automotive- 77 Suncall Precision Components Are Used in Variety of Applications
(1) Valve springs op-class market share in Japan Integrated production from materials to processing enables high-quality and high-durability that can withstand 100 million compressions. Engine components Transmission components Safety components We achieve comfort by enabling calibration of precision torques by manufacturing from materials.
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 core business. We are pioneering new domains through safety, security, and high-quality. Motor and electric components (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 built-in feature to measure voltage while transmitting current Also supports high current such as in lithium-ion batteries (4) Fuse sensors A next-generation sensor that destructively interrupts energized parts when an overcurrent is detected (4) Motor cores/stator cores Components that form the core of the motor We achieve high productivity through automated integrated production. (2) Ring gears / drive plates Top-class market share in Japan Our proprietary metal processing technology achieves high precision, (3) Spiral springs for seatbelts 88 Suncall Precision Components Are Used in Variety of Applications Electronic Information and Communications Seg Key devices in product groups whose demand is expected to be increased by future expansion of 5G/IOT and increasing remote work Supporting extreme levels of precision requirements for HDD magnetic heads with positioning at t he level of 10s of nanometers Printer-related products Worldwide top market share by supplying long, lightweight, and high- precision shafts Our Strengths
Advanced precision plastic processing technology Integrated production system spanning from materials to products
In-house die
production
■ We produce drawing dies in-house, which enables us to create precision deformed products with more complicated shapes. We achieve short delivery turnaround while meeting our customers’ precision requirements.
Materials
evelopment
contributions start from designing the composition of steel materials, developing unique high-strength materials with the high responsiveness and durability that meet our customers’ specifications requirements.
Quality assurance
■ ■ We roll out applications of the measurement expertise we gained through manufacturing precision components. We leverage our unique applied sensor technologies to combine an inline measurement system with control technology. This dramatically improved quality and productivity.
Surface treatment
chnology
We achieve high fatigue strength by leveraging surface treatment technologies such as nitriding and multi-stage shots.
11 IN Continued Listing Plan
Status with Regard to Meeting All Criteria for Continued Listing
As of the base date for transition (June 30, 2021), the Company did not meet the criteria for continued listing on the Prime Market for tradable share market cap and trading value.

Period of Plan
■ We have specified the period of plan for meeting the criteria for continued listing as the final fiscal year of the next Medium- term Management Plan (April 2022–March 2025). We will implement various measures to meet the criteria as soon as possible. ■ The next Medium-term Management Plan (April 2022–March 202) is under diligent consideration. We plan to announce the details together with our financial results for the third quarter, scheduled for release in February 2022.
13
Basic Policy
We intend to increase the tradable share market cap by formulating the next Medium-term Management Plan and steadily implementing measures including capital measures together with the business plans in the Medium-term Management Plan. We are giving careful consideration to increasing the trading value through a continuously higher share price (which translates to market cap).
Current Issues and Future Initiatives for Increasing the Tradable
Share Market Cap
The Company’s past inability to exceed the cost of capital expected by the stock market is considered to be an issue. We will implement the following measures in the next Medium-term Management Plan in order to solve this issue. Reform our business ■ portfolio with an awareness of return on capital ■ Implement the capital measures that contribute to higher shareholder value with an understanding of appropriate capital structure ■■   Establish the SDGs Promotion Committee and search for business opportunities that address sustainability issues . Strengthen management oversight by increasing the number of independent outside directors
Relationship between the Company’s Trading Value and Market Cap Average trading value (thousands of yen) Because a correlation can be seen between the Company’s trading value and market cap, we are giving careful consideration to increasing the trading value through a continuously higher market cap. * Source: Speeda Next Medium-term Management Plan (April 2022–March 2025) Outline
Overview

Shareholder value
◾ FY ending March 2025: Net sales of 63.0 billion yen, operating income of 4.5 billion yen, and net income of 3.5 billion yen ◾ Set ROE target for the final fiscal year at 9.0%, and ensure that it consistently exceeds the cost of capital
Business strategy and portfolio strategy
◾ Automotive-related products segment: Cultivation and expansion of next-generation business (growth business related to electric vehicles and electrification) Significant improvement in earnings strength by addressing structural changes in automotive industry ◾ Electronic information and communications segment: Continued capital investment and productivity enhancement to meet customer demand
Financial and capital strategy
◾ Investment decisions with a thorough awareness of cost of capital ◾ Balance sheet management with an understanding of appropriate capital structure ◾ Maintain payout ratio at 75% until ROE exceeds 9% in order to prevent a buildup of equity capital
Environmental, social, and governance system
◾ We have established the SDGs Promotion Committee and will search for business opportunities that address sustainability issues. ◾ We are strengthening management oversight by increasing the number of independent outside directors. 17 Next Medium-term Management Plan (April 2022–March 2025) Numerical Targets
Next Medium-term Management Plan (April 2022–March 2025) Business Strategy
Acceleration of an effective strategy to create a business portfolio for 2030 that will enable sustainable growth Accurately identify business opportunities and growth fields of each business, make highly effective investments with an awareness of capital cost, and ensure that we achieve profitability on the upfront investments we have made to date Cultivation and expansion of next-generation main business Growth business related to electric vehicles and electrification Significant improvement in earnings strength by addressing structural changes in automotive industry Existing automotive-related products segment Continued capital investment and productivity enhancement to meet customer demand Growth business related to electronic information and communications
A utomotive-related products segment Products related to electric vehicles and electrification (next-generation business) (bus bars, current sensors, etc.) Existing products (valve springs, wire for valve springs, ring lu lectronic information and communications segment Hard disk drive suspensions Optical and printer-related products Others
Cultivation and expansion of next-generation main business
(Growth business related to electric vehicles and electrification)
Sizable growth in demand for various types of vehicles including electric vehicles, hybrids, and plug-in hybrids is . creating increased needs for highly precise current detection. We will meet these needs by developing bus bars, shunt sensors, and shunts on bus bars and launching them in the electronic vehicles market. Medium- to long-size bus bars using the Company's plastic processing for metals and precision processing . technologies have been newly adopted for use in electric vehicles and hybrids by two Japanese automakers. We will promote their adoption for other vehicle models. We have begun to mass produce and supply shunt bus bars for electric vehicles in North America. We will . expand sales of shunt bus bars in Europe, China, and the U.S. together with shunt sensors for high-precision current detection, which we have started to deliver in Japan. Moving forward, we will accelerate global mass production by further enhancing our development system and . collaborating with Marubeni-Itochu Steel Inc., in order to develop the electrification-related business into a next- generation main business.
Significant improvement in earnings strength\by addressing
structural changes in automotive industry
(Existing automotive-related products segment)
With sizable growth in demand for electric vehicles forecast, we will be able to maintain through 2030 the scale of J . our existing automotive-related products segment (consisting of a seat belt business and other safety equipment-f related products in addition to the main products of engine parts and precision-functioning transmission parts). . We will focus on improving earnings strength of existing projects by thoroughly managing earnings on an individual product basis.
Outlook for progress on automobile electrification By 2030, 34% of vehicles will be electrified
[Data Source: FOURIN & Marklies] Continued capital investment and productivity enhancement to meet customer demand
(Hard disk drive suspension business)
. The remarkable growth of cloud computing in recent years is expected to increase data storage volumes at a rate of nearly 20% per year. We expect growth to accelerate even more in the post- pandemic world. . Customer demand for large-capacity hard disk drives, called “nearline drives,” remains strong, particularly in data centers for such uses as growth of IoT and storage of video data. The Company will continue to carry out capital investment in the hard disk drive suspension business to accurately meet customer demand and pursue higher efficiency by strengthening its production technology capabilities to further increase customer satisfaction through stable supplies and cost reductions.
(Communications-related business)
. Further growth driven by strong 5G-related and IoT-related demand is forecasted going forward in the optical information and communications industry’s three main application markets: data centers, telecommunications, and wireless. . We will work to increase sales by strengthening our product development capabilities and expanding our sales network for all these markets.
Demand for nearline hard disk drives will tend to grow going forward in response to the explosive growth in demand for cloud storage capacity 1 The COVID-19 pandemic is expected to drive explosive growth in demand for cloud storage in the global market 2 Data storage and processing services are centrally managed in data centers and require large- capacity storage 3 Demand for nearline hard disk drives will grow further compared to our forecast in March 2021 Hard disk drive capacity demand An exabyte (EB) is a unit of measurement for data. 1 EB is 1,000,000,000,000,000,000 bytes. Source: Techno Systems Research Co., Ltd. Next Medium-term Management Plan (April 2022–March 2025) Financial and Capital Strategy
■ Reform our business portfolio with an awareness of improving return on capital Manage balance sheet with the aim of optimizing excessive shareholders' equity Maintain payout ratio at 75% until ROE exceeds 9% to prevent a buildup of equity capital ■ Effectively utilize leverage ■ Restructure and strengthen existing businesses ■ Develop businesses in growth domains ■ Improve profit margins through cost reductions ■ Actively invest in core businesses and personnel ■ Convert to agile personnel placement ■ Maintain payout ratio at 75% until ROE exceeds 9% ■ Consider using interest-bearing debt for M&As ◾ Investment decisions with a thorough awareness of cost of capital Promote management with an awareness of return on capital and balance sheet management to continuously exceed 9% ROE Change from the conventional policy of stable dividends to aggressively implementing return to shareholders in order to prevent a buildup of equity capital ■ As set forth in the next Medium-term Management Plan, maintain payout ratio at 75% until ROE exceeds 9% Trends in dividends per share (yen) Maintain payout ratio at 75% until 9% ROE is attained March 2019 FY ended FY ending FY ended March 2024 March 2022 March 2021 March 2023 March 2020 Next Medium-term Management Plan (April 2022–March 2025) Environmental, Social, and Governance Response
Currently, the committee is consolidating and streamlining issues regarding climate-related risks of our business activities and revenue opportunities Environmental, Social, and Governance Response (2) Increasing the Number of Independent Outside Directors At the General Meeting of Shareholders in June 2022, we plan to appoint an independent outside director. Our target is for one third of the Board to consist of independent outside directors by the General Meeting of Shareholders in June 2023. Current ratio of independent outside directors 18% Ratio of independent outside directors at the General Meeting of Shareholders in June 2022 25% Ratio of independent outside directors at the General Meeting of Shareholders in June 2023 33% To create the best director composition, we are studying skill matrix as a tool to list and evaluate knowledge, experience, skills, and other qualities of each director from an objective viewpoint. We plan to include this information in the convocation notice of the General Meeting of Shareholders in June 2022. [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 are prepared based on currently available information and include factors of known and unknown risks and uncertainty. Accordingly, the Company's actual performance, business activities, and financial position may differ significantly from these statements. Please note that the Company has no obligation to announce or disclose updates or revisions to these forward-looking statements.
GSUNCALL CORPORATION All Right Reserved.