Suncall Corporation Business Report FY ended Mar. 2017

Financial Overview

(in million JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 Rate of Change (%) Factors
Sales 37,980 36,730 3.4 -Sales of automotive parts increased due to higher sales volumes of transmission and engine parts.
Operating income 2,250 2,113 6.5 -
Ordinary income 1,734 1,522 13.9 -
Profit for the year attributable to owners of the parent 1,093 1,042 4.9 -
Functional Precision Materials
Sales 4,352 4,185 4.0 -Sales increased due to higher sales volumes of valve-spring materials in China and profile extrusion materials in Japan.
Functional Precision Components
Sales 23,297 22,484 3.6 -Sales of safety-device parts decreased year-on-year while sales of transmission and engine parts increased.

Mid-term Business Plan

-The Company announced its mid-term business plan and policies in May 2016. The objectives are as follows: in the fiscal year ending in March 2019, JPY 50.0 billion in consolidated sales, operating profit margin of 10%; and investment of JPY 12.0 billion yen over three years, which includes potential investments in M&As.

Expand automotive business
-Expand valve-spring-material business;
For high-precision parts for engines and transmissions, continue to increase production capacity at the plants in China and Mexico manufacturing automotive wire materials, in line with the expanding global market. This includes enhancing productivity based on a three-region operating structure, which includes Japan, and building the organizational structure to achieve optimum product production and delivery.

  • Mexico: launch operations in 2016 to take advantage of the strong demand in the North American market
  • China: increased sales from the latter half of 2015 in China and the Southeast Asian market.
  • Japan (Kyoto): operate at full capacity

-Take advantage of seamless production operations, from materials to products;

  • Expand market share of coil springs for seatbelts (retractors) and materials: The Company's current market share of these products is 8%, according to the Company's own study. Increase the Company's capacity to deliver 2,600 tons of materials per year (as of 2015), to 4,000 tons in 2018. Transfer operations producing materials to the joint venture in Korea, and increase sales outside Japan. Launch sales of coil-springs in the North American market through a joint venture with Hayamizu Hatsujo Co., Ltd.
  • Expand business in high-strength springs for transmissions (damper springs): Demand for high-strength materials will increase, in line with multi-stage automatic transmissions and stop/start systems. Make better use of valve spring materials and improve profitability by switching to automated production lines, in order to expand the business.
  • Develop valve-spring material for hybrid vehicles: develop low-cost new products that can respond to low density compared to high-powered engines.

-Development of new products for HVs, EVs, PHVs, and FCVs; and non-automotive products;
In the midst of growing demand for electronic products and alternative materials because of the rapid progress in vehicle electrification and weight reduction as a result of developments in technology on safety, low-environmental impact, and driver-assist systems, the Company is making use of technology on precision plastic processing and production technology on electronic information and communications, developing and manufacturing major components for HVs, EVs, PHVs, and FCVs. It plans to make this one of its major business operations in the future. It is also researching to find alternative materials for materials currently being used.

  • Shunts on busbars: sensors to detect electrical current in integrated, single-unit busbars. Capability to detect flows of high electrical current in lithium-ion batteries, with high precision. Low-cost, simple architecture, integrated single-unit. Space-saving design.
  • Bus rings: Eliminates the need for stamping dies based on being formed from a single strand of copper rectangular wire. Small-lot production possible. Significantly simplifies installation of wire on the motor.
  • Wireless power supply coils: non-contact power supply coils for high electric current. The thickness of the coil is about half that of round wire due to the use of shaped, cross-sectional wire. Being coated after being processed improves its performance to withstand high voltage and maintain stable frequency because of its uniform shape.
  • Square magnetic wire: Magnetic wire for motor coil. The Company has a patent for this wire. It is based on rolling technology. Size of motor can be reduced by using this wire. It is made of aluminum so reduces vehicle weight. Improves heat resistance.

R&D activities

1) Development Group
Shunts on busbar
-This electric-current sensor directly measures high electric current in the range of 200 to 800 amperes. Jointly developed with KOA Corporation. The Company will launch sales of this busbar because it won a firm order to deliver it to a customer.

2) High precision materials
Precision piston-ring material for improving surface properties
-Currently, piston rings are mostly cast or made from steel-wire material (precision shaped wire). Now, in order to further improve performance and lower costs, customers are requiring wires with more precise shapes and cleaner surfaces. This is because they need to eliminate or at least reduce machining processes after the rings are formed, i.e., need near-net wire. In response to this, the Company developed new production methods that improve the shape of wire materials, which was an issue with drawn wire materials. It started manufacturing and delivering them.

3) Precision Products
Springs for new variable valve
-The Company developed and filed a patent application for a high-performance plunger spring that will be used in high-voltage fuel pumps for gasoline, direct-injection engines. This spring is capable of reducing friction and lowering the amount of heat emitted. Since the Company won a firm order for this spring from a Japanese OEM, it launched production of it in January 2017.

High rebound-spring for seatbelt retractors
-The Company developed a new rolled-sheet material to use in making high-torque coil springs. This new material tightens the level of torque by 10%, compared with conventional rolled material. By using this new material, the Company succeeded in making mainsprings coils thinner and shorter, and as a result, they can be used on high-torque vehicles. The Company launched production of it in Japan. It is evaluating it with customers, with the aim of increasing sales at its joint venture in Mexico.

Developing next-generation busbars
-The Company is developing busbars as power-supply terminals for inverters, motors, and batteries used on electric, hybrid, and plug-in-hybrid vehicles. It is developing next-generation busbars that will have aluminum bases and thin insulating coating and be molded of multilayer plastics.

R&D Expenditure

(in million JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 FY ended Mar. 31, 2015
Overall 807 940 823

Capital Expenditure

(in million JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 FY ended Mar. 31, 2015
-Functional Precision Materials (Japan) 415 330 310
-Functional Precision Materials (North America) 680 941 1,031
Functional Precision Materials Total 1,095 1,271 1,341
-Functional Precision Components (Japan) 744 1,078 1,119
-Functional Precision Components (North America) 424 1,007 527
-Functional Precision Components (Asia) 110 340 566
Functional Precision Components Total 1,278 2,425 2,212
Other 1,562 934 304
Grand Total 3,938 4,630 3,857

Planned Capital Investments

(As of Mar. 31, 2017)
Company or Office Name Facilities Expected Investment
(in million JPY)
From To
The Company
(Kyoto, Japan)
Manufacturing facility
(Functional Precision Materials)
400 - Mar. 2018
Manufacturing facility
(Functional Precision Parts)
498 - Mar. 2018
Suncall Engineering Co., Ltd.
(Yamanashi, Japan)
Manufacturing facility
(Functional Precision Parts)
174 - Mar. 2018
Suncall America Inc.
(Indiana, USA)
Manufacturing facility
(Functional Precision Parts)
238 - Dec. 2017
Suncall High Precision (Thailand) Ltd.
(Chonburi, Thailand)
Manufacturing facility
(Functional Precision Parts)
105 - Dec. 2017
Suncall (Guangzhou) Co., Ltd.
(Guangzhou, China)
Manufacturing facility
(Functional Precision Parts)
63 - Dec. 2017

Outlook for FY ending Mar 31, 2018

(in million JPY)
FY ending Mar 31, 2018
FY ended Mar. 31, 2017
(Actual Results)
Rate of Change
Sales 41,500 37,980 9.3
Operating income 2,700 2,250 20.0
Ordinary income 2,600 1,734 49.9
Profit for the year attributable to owners of the parent 2,000 1,093 82.9
automotive-parts sector
Sales 29,400 27,649 6.3

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