Suncall Corporation Business Report FY ended Mar. 2015

Financial Overview

(in million JPY)
FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 Rate of Change (%) Factors
Sales 35,816 34,282 4.5 -
Operating income 2,557 3,127 (18.2) -
Ordinary income 3,352 3,757 (10.8) -
Net income 2,143 2,498 (14.2) -
Functional Precision Materials
Sales 4,299 3,989 7.8 -
Functional Precision Components
Sales 20,443 19,984 2.3 -While sales in Japan slowed because of the consumption-tax hike, export sales from Japan remained strong.
-Even though the subsidiary in Thailand was affected by a slowdown in the automotive market in the country, sales of parts used on safety devices were strong. In addition, sales of some engine parts also recovered during the second half of the year.
-Sales at the Company's subsidiaries in the U.S. and China were higher due to strong automotive demand. Sales of engine and transmission parts especially increased.

Outlook for FY ending Mar 31, 2016

(in million JPY)
FY ending Mar 31, 2016
FY ended Mar. 31, 2015
(Actual Results)
Rate of Change
Sales 40,000 35,816 11.7
Operating income 3,200 2,557 25.1
Ordinary income 3,200 3,352 (4.6)
Net income 2,200 2,143 2.7

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

Business Plan

Future plans (after the fiscal year that ended March 2015)
1. Continue expanding operations worldwide in order to respond to robust demand for automotive products overseas.

-Manufacture and sales of automotive parts at the production plant in Mexico
(1) Expand sales of wires for valve springs
(2) Launch a joint venture to produce SBR
(3) Manufacture and sales of ring gears

-Expand ring-gear operations by establishing new company in Tianjin, China.

2. Expand market share of major products

-Raise current 20% market share of automotive-engine valve springs (including the materials) to 30%.
-Raise current 8% market share of seat-belt retractors to 15%.

R&D Expenditure

(in million JPY)
FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
Overall 823 735 786

R&D Activities

1) Functional Precision Materials (Japan)
Development of wires for precision piston rings
-The Company is developing production methods to improve the surface quality of precision-formed heteromorphic wires, in order to improve the sealing performance of piston rings, which are starting to be equipped on the latest engines that are being modularized. Furthermore, the Company is developing and commercializing new, steel wires for springs (1.5 material class) that form the basis high-strength valve wires that the Company has been developing for years, and which should lower costs, achieve costs savings of high-cost nitrated rings (stainless wires), and increase in demand in line with downsizing.

2) Functional Precision Components (Japan)
Development of mainsprings for new, variable valve train systems
-The Company developed mainsprings as products for new variable valve mechanisms mounted on next-generation engines that use heteromorphic sectional materials that are of the same level of quality as those used in valve springs. It launched production of them in May 2014 for Japanese OEMs and in September 2015 it plans to launch production of them for non-Japanese OEMs. In addition, it is working to expand their application to include other engines built by the same companies. It is now starting R&D activities, aiming to develop springs for next-generation models.

Development of highly retractable springs for seatbelt retractors
-The Company succeeded in raising the current torque level 10% by developing heteromorphic-rolled wires for high-torque mainsprings. This made it possible to make spring wires thinner, shorter, and lighter, resulting in lower costs. The Company is conducting sales activities, with plans to launch production in the fiscal year ending March 2016.

Capital Expenditure

(in million JPY)
FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
-Functional Precision Materials (Japan) 310 180 125
-Functional Precision Materials (North America) 1,031 - -
Functional Precision Materials Total 1,341 180 125
-Functional Precision Components (Japan) 1,119 1,015 501
-Functional Precision Components (North America) 527 192 355
-Functional Precision Components (Asia) 566 343 75
Functional Precision Components Total 2,212 1,550 931
Other 304 440 711
Grand Total 3,857 2,170 1,767

Capital investment during FY ended Mar. 31, 2015
-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 mainly to improve the productivity of spring wires and precision-formed heteromorphic wires, improve quality, and install facilities to manufacture valve-spring wire.

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

Planned Capital Investments

(As of Mar. 31, 2015)
Company or Office Name Facilities Expected Investment
(in million JPY)
Project period
From To
The Company
(Kyoto, Japan)
Manufacturing facility
(Functional Precision Materials)
322 - Mar.
Manufacturing facility
(Functional Precision Components)
677 - Mar.
Suncall Engineering Co., Ltd.
(Yamanashi, Japan)
Manufacturing facility
(Functional Precision Components)
112 - Mar.
Suncall America Inc.
(Indiana, USA)
Manufacturing facility
(Functional Precision Components)
463 - Dec.
Suncall Technologies Mexico, S.A. de C.V.
(Aguascalientes, Mexico)
Manufacturing facility
(Functional Precision Materials)
690 - Dec.
Suncall High Precision (Thailand) Ltd.
(Chonburi, Thailand)
Manufacturing facility
(Functional Precision Components)
267 - Dec.