Financial Overview

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of Change (%)	Factors
Overall
Sales	34,282	31,360	9.3	-
Operating income	3,127	2,137	46.3	-
Ordinary income	3,757	2,741	37.1	-
Net income	2,498	1,867	33.8	-
Functional Precision Materials
Sales	3,989	3,975	0.4	-
Functional Precision Components
Sales	19,984	18,016	10.9	-US subsidiary was able to maintain the same volume of sales as it did the previous year. -From September, China subsidiary recorded strong sales after demand for Japanese-brand vehicles recovered. -Sales of engine parts at the Thai subsidiary increased in the first quarter of the year due to new-car sales incentives that were introduced; and due to strong sales of stamped parts. -Sales in Japan mainly of new transmission parts, eco-car parts, and safety parts contributed to the increase in sales

Recent Developments Outside Japan

<Mexico>
-In September 2013, the Company established Suncall Technologies Mexico S.A. de C.V. in Aguascalientes in order to strengthen its operations in North America and increase its production capacity to produce materials. The plant, which is built on 40,000 sq. meters of land, will produce automotive valve spring materials. It will have the capacity to produce 300 tons a months, when it launches commercial operations in January 2016. It plans to employ 44 individuals in 2016.

<China>
-Kobelco Spring Wire (Foshan) Co., Ltd., a joint venture that was established in January 2012 in Guangdong, launched commercial production of automotive valve-spring materials in January 2014. It produces 600 tons a month, of which about half is supplied to Suncall. The joint venture was established among Suncall, Kobe Steel Co., Ltd; and Shinko Wire Co., Ltd. and is capitalized at JPY 1.3 billion, with Suncall contributing 25% of the amount.

<South Korea>
-In October 2013, K&S Wire Co., Ltd. was established in Yangsan, South Korea as a joint venture among Suncall, Kiswire Ltd., and Zenkoh Co, Ltd. It is capitalized at around JPY 400 million, with Suncall investing 49% of the amount. The joint venture started to produce seatbelt retractors and precision rolled steel from January 2014.

Outlook for FY ending Mar 31, 2015

(in million JPY)

	FY ending Mar 31, 2015 (Forecast)	FY ended Mar. 31, 2014 (Actual Results)	Rate of Change (%)
Sales	36,000	34,282	5.0
Operating income	3,150	3,127	0.7
Ordinary income	3,200	3,757	(14.8)
Net income	2,200	2,498	(11.9)

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

Mid-term Management Plan

-The Company established its mid-term management plan called Plan 37500. Under the Plan, the Company aims to increase its global share of automotive products, which will be based on precision metal plasticity processing, its core technology; digital products; and optical communications products. It will work to achieve operating revenue of JPY 37.5 billion in fiscal year 2014. Its strategies for achieving these objectives are outlined below:

1) Expand Sales
-Along with developing markets for the products that it developments such as reactor coils for hybrid vehicles, the Company is developing new uses for its products that already have a high share of the global market.

2) Strengthen global production operations
-In order to maintain its predominance while competing with manufacturers in developing countries, forecasting that demand in Asia and the U.S.A. will grow, and responding to currency risks and other risks, the Company will implement the following initiatives:

• Strengthen its three-region, global production structure based on operations in Japan, the U.S.A, and Asia, by continually investing.
• Launch production in China based on its joint-venture company manufacturing wire for valve springs, so as to respond to growing demand.

3) Enhance technical functions responsible for new-product development
-Speed up development of brand-new products such as processed terminal posts/pins and laminated electromagnetic steel sheet coils for hybrid cars, ensuring this by enhancing its production functions.

4) Reduce costs
-Lower costs by reducing production processes, developing materials that can be handled by compact production lines, and upgrade production lines that raise productivity.

R&D Expenditure

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	735	786	703

R&D Activities

1) Functional Precision Materials (Japan)
Development of high-quality piston ring material
-The Company developed superior quality shaped/deformed wire in terms of its smooth surface with only minute defects by improving the scale-removal process (needed when making round wire) and membrane processing technology. It is being developed for next-generation piston rings designed for automotive modules.

2) Functional Precision Components (Japan)
Development of mainsprings for new, variable valve train systems
-The Company developed mainsprings using heteromorphic sectional materials that are of the same level of quality as those used in valve springs for new variable valve mechanisms mounted on next-generation engines. It won orders for them from OEMs based in and outside Japan, launching production in May 2014.

Development of highly retractable springs for seatbelt retractors
-The Company succeeded in raising the level of elasticity/resilience by 10% by combining its technology on shaping and rolling with high-deformity mainspring processing. As a result, it was able to reduce weight by making the mainspring material thinner and shortening the overall length, which also significantly reduced costs. It is working with customers to launch production in fiscal 2014.

Capital Expenditure

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
-Functional Precision Materials (Japan)	180	125	340
Functional Precision Materials Total	180	125	340
-Functional Precision Components (Japan)	1,015	501	586
-Functional Precision Components (USA)	192	355	88
-Functional Precision Components (Asia)	343	75	52
Functional Precision Components Total	1,550	931	726
Other	440	589	580
Grand Total	2,170	1,767	1,646

1. Capital investment during FY ended Mar. 31, 2014
-The Company's main investment activities were for increasing its production volumes, improving productivity, reducing costs, raising product quality, and enhancing the environmental responsiveness of its products.

Functional Precision Materials
-The Company invested primarily in improvement of productivity of valve spring materials, precise deformed materials and quality.

Functional Precision Components
-Capital investments were mainly for reducing costs of automotive parts, improving productivity, and helping the environment.

2. Capital investment during FY ending Mar. 31, 2015
-The Company plans to invest JPY 4,500 million by Mar. 2015 toward following projects:

• JPY 2,500 million to commence its operation in Mexico and to expand business in China
• JPY 2,000 million to strengthen production capacity and so on

Planned Capital Investments

(As of Mar. 31, 2014)

Company or Office Name	Facilities	Expected Investment (in million JPY)	Project period
			From	To
The Company (Kyoto, Japan)	Manufacturing facility (Functional Precision Materials)	278	Apr. 2014	Mar. 2015
The Company (Kyoto, Japan)	Manufacturing facility (Functional Precision Components)	975	Apr. 2014	Mar. 2015
Suncall America Inc. (Indiana, USA)	Manufacturing facility (Functional Precision Components)	288	Jan. 2014	Dec. 2014
Suncall Technologies Mexico, S.A. de C.V. (Aguascalientes, Mexico)	Manufacturing facility (Functional Precision Materials)	277	Jan. 2014	Dec. 2014
Suncall High Precision (Thailand) Ltd. (Chonburi, Thailand)	Manufacturing facility (Functional Precision Components)	234	Jan. 2014	Dec. 2014
Suncall (Guangzhou) Co., Ltd (Guangzhou, China)	Manufacturing facility (Functional Precision Components)	168	Jan. 2014	Dec. 2014