Innovating new ideas today. Becoming the norms of tomorrow.

Medium-term Management Plan "Change & Growth SWCC 2026"
Rolling Plan 2024 FY2024-FY2026
May 13, 2024

TSE PRIME: 5805

Formulating Rolling Plan 2024 under the Medium-term Management Plan

Takayo Hasegawa,
Executive President and Representative Director (CEO)The first half of our Medium-term Management
Plan that began in 2022 has ended. Looking backon the past two years, we have made steadyprogress towards our stated KPIs. We havestrengthened the earning capabilities of our corebusinesses by investing in increased production ofstrategic products and enhancing the profitability of
our cash cow business through digitaltransformation (DX). Additionally, we haveachieved some results in creating new businesses,
such as the launch of the Smart Stream business.
However, issues remain in the new development of
our overseas business due to delays to our planscaused by the COVID-19 pandemic andgeopolitical risks.
Meanwhile, the business environment has
undergone considerable change since the current
Medium-term Management Plan was drafted in
November 2021. Under this rolling plan, we willtake these changes into account as we revise ourbusiness and investment strategies, make further
investments in growth drivers, and draw up

measures aimed at portfolio transformation. While
we have made an upward revision to operating
income with a new target of 17 billion yen to beachieved through organic growth, we will
implement measures to further increase this figure
through investment that leads from stability to
growth, and hope to make this a big step bringing
us closer to our 2030 vision.
More specifically, we will further refine ROIC
management, strengthen our ability to generatecash flow from business operations, and employ
enhanced capital strategy to optimize the cost ofcapital and enhance shareholder return. In addition
to enhancing our human capital strategy without
backtracking on the reforms we have made to date,
we will also focus on business development (BD)strategy to broaden the areas where we operate
as an upside element (inorganic) to the latest
target figures.
Stay tuned for this new beginning of the SWCC
Group's Medium-term Management Plan: Change& Growth SWCC 2026 Rolling Plan 2024.

2

SWCC VISION 2030: What We Want to Be by 2030
Based on the core technologies cultivated by SWCC
to date, we aim to create new value leading toa better future and further enhance corporate value.
Energy and infrastructure
Improving production efficiency
through DX
Making strategic products thedefault standard

Improving
economic value

Electrical equipment
and components
Shifting from wirematerials to high valueadded products

SWCC VISION 2030
It‘s not only with our traditional
cable and wire for infrastructure.
SWCC is committed to becoming
a value-creation company that
proposes solutions.

Comprehensive
electric wire
manufacturer
Electric wire
manufacturer

Organic growth &inorganic growth

Communication and industrial devices
Going beyond products for offices andconsumer electronics and entering new fields
such as products for ADAS

Improvingsocial value

Building social infrastructure that
supports people's lives
Contributing to labor saving andpower conservation

3

Contents
1. Rolling Plan Targets
2. Priority Measures
3. Business Strategy
4. Capital Policy and Financial Strategy
5. Strengthening Intangible Assets and the Management Base4

1. Medium-term Management Plan
"Change & Growth SWCC 2026"
and Rolling Plan Targets

5Changing Perception of the Business Environment
Expected Trends When the Medium-termManagement Plan Was Announced(as of November 2021)

Segment

Construction• Slight decrease in the medium- to long-term despite
redevelopment activities in the Tokyo metropolitan areaand expected demand ahead of the Osaka Expo

• Increased demand due to redevelopment activities in the Tokyo
metropolitan area
• Higher demand for new factory construction and the Osaka Expo
• Lengthened construction schedules due to labor shortages• Expansion of demand for offshore wind, etc.
• Expanded demand to upgrade aging equipment• Expanded demand to upgrade aging equipment• Growth in demand to expand power transmission and distribution
networks• Withdrawal of competitors• Expansion of demand for offshore wind, etc.
• Growth in demand for large-scale data centers• Growing demand in products for BEV• Despite a market recovery, demand for BEV slowed while
recovery of demand for HEV expanded• Widespread adoption of CASE
• Growth in demand for motors• Increase in telecommunications equipment and traffic• Increase in telecommunications equipment and traffic• Expansion of overseas telecom and datacom markets• Growth of the ADAS market• Global market expansion• Slight demand uptick in Japan• Slowing market expansion in China and Southeast Asia
• Greater demand for high-end home appliances• Diversification of commercial printing demand• Recovery of demand from the drop in COVID-19-related special
demand• Diversification of commercial printing demand

Energy andinfrastructure
Electricity

Electricalequipment andcomponents

Automotive

Communications
Communication andindustrial devices Home appliances
Office equipment

Rolling Plan 2024 Forecast(FY2024 to FY2026)

6

Positioning of Rolling Plan 2024
Working toward the vision for 2030, we will further evolve into a value creation company with Rolling Plan 2024.
Medium-term Management Plan FY2022-FY2026 Change & Growth SWCC 2026

SWCC
VISION
2030

Progress in FY2022-FY2023

Rolling Plan 2024

● Strengthened the earning capabilities of our corebusinesses by investing in increased production ofstrategic products and enhancing the profitability of our
cash cow business through DX

Enhancing the ability to generate cash flow bypromoting ROIC-oriented management● Creating new businesses such as the launch of theSmart Stream business and making the ICT businessprofitable

Optimizing the cost of capital

FY2024-FY2026● New expansion of overseas business including theestablishment of the local-production-for-localconsumption model in the China business and theestablishment of joint venture companies

Expanding investment in intangible assetsIt‘s not only with our
traditional cable andwire for infrastructure.
Becoming a value
creation company

Structural reform phase
Growth phase

FY2022

FY2023

FY2024FY2026

FY20307

Rolling Plan 2024: Target Financial Figures
The new target figures represent upward revisions due to organic growth. We will aim to further expand theupside through inorganic growth.
Before Rolling Plan
FY2023

Profitability

Capital efficiency

Shareholder
returns

FY2026After Rolling Plan
FY2026(Results)(Targets)(Targets)12.8 billion yen

15.0 billion yen

17.0 billion yen

ROE

12.3%

10% or more

14% or more

ROIC

8.3%

10% or more

10% or more

Dividends(dividend payout
ratio/DOE)

90 yen120 yen or more

150 yen or more

(35%/not set)(35% or higher/4%
or higher)

D/E ratio

40%

50% or less

30–50%Net assets

77.1 billion yen

85.0 billion yen or more

93.0 billion yen

Operating income

Stability(30%/3.7%)

8

Medium-term Management Plan:
Progress on KPIs and Key Points of the Rolling Plan
Operating income(100 million yen)
Pre-rolling target

ROE
Difference frompre-rolling targets

Difference frompre-rolling targets

Results + Rollingplan targets+2.0 billion yen
170

100

FY2022

FY2023

FY20260pt

14.0%

10.0% 10.0%

12.3%
10.0%

105

Difference frompre-rolling targets+4.0pt

15.0%

150
128

ROIC

FY202210.0%

FY2023

FY20267.0%

7.1%

FY20228.3%

FY2023

FY2026

Achievements

Progress outpaced the targets set before therolling plan thanks to strongly performing
businesses and the effects of improved
earnings.

In addition to improving the profitability ofcapital through the promotion of ROICoriented management, ROE prog in part due
to the disposal of non-operating assets aspart of structural reforms.

By promoting business-specific ROIC, we
enhanced capital efficiency companywide,
leading to steady improvements to ROIC.

Rolling

We will upwardly revise the targets to be reachedby the final year of the plan through proactive
investment in growth-driver businesses and astrategy of expansion into new business fields
leveraging our core technologies.

Despite shareholders' equity continuing toaccumulate, we will maintain ROE at a highlevel that exceeds the cost of shareholders'equity by further expanding business earnings.

While continuing to invest in business growth,
we will expand ROIC by further expanding
business earnings and improving capitalefficiency.

9Medium-term Management Plan:
Progress on KPIs and Key Points of the Rolling Plan
Dividends per share (yen)Pre-rolling target
Results + Rollingplan targets

D/E ratio

Difference frompre-rolling targets

Difference frompre-rolling targets

Difference frompre-rolling targets+30 yen-20.0-0pt

8.0 billion yen
930

150
120

850
70%

771
61%

50

Rolling

40%

60

FY2022

FY2023

684
600

50%

90

Achievements

Net assets (100 million yen)

FY2026FY2022

FY202330-50%FY2026FY2022

FY2023

FY2026

Achieved improvements to financial
soundness while increasing the dividend
payout ratio to 30% in FY2023.

Reduced interest-bearing debt and achieved
an improved financial position by expanding
shareholders' equity against a backdrop ofstrong business performance.

Enhanced shareholders' equity with a focus
on the accumulation of business earnings,
achieving stabilization of the financial base(end of FY2023: capital adequacy ratio of47%).

We will aim to further expand shareholder
return in balance with growth investments,
setting dividend target of 35% or more for thedividend payout ratio and 4% or higher for
DOE.

While maintaining a measure of financial
discipline, we will also make use of debtbased financing and work to reduce WACC.

To ensure sufficient funding capacity for
growth investments and diversify funding
methods, we will aim to achieve an external
credit rating of A- or higher and further
strengthen our financial base.

10Medium-term Management Plan:
Progress on P/L by Business and Key Points of the Rolling Plan
We will work to expand solid growth in the Energy and Infrastructure Business and improve companywide
earnings while revising the upside of targets in the final year of the Medium-term Management Plan for both net
sales and operating income.
Net sales (100 million yen) Rolling Plan targets

2,430

+280

2,139
553

Electrical equipment andcomponents

FY2023Copperprice(yen/kg)(CAGR 0.2%)

307

1,232

1,262

(CAGR 4.3%)

2,150Communication andindustrial devices

Energy and infrastructure

-

428
614

Operating income (100 million yen) Rolling Plan targets

-68
+116

360
730

7.0%
6.0%

128
14
16

1,240

107

FY2026
Before the
Rolling Plan

FY2026
Target Afterthe Rolling Plan

FY2023

870

1,250

979

+261

Operating margin

7.0%

170

+20

(CAGR 9.9%)

150(CAGR 5.4%)
Communication andindustrial devices
Electrical equipment andcomponents

Energy and infrastructure

-

45
26
80

FY2026
Before the
Rolling Plan

-10
０

+32

35
26

112

FY2026
Target Afterthe Rolling Plan

11

Medium-term Management Plan: Progress on P/L by Business
Energy and Infrastructure BusinessElectronic Equipment and Components BusinessCommunication and Industrial Devices Business

Factoring in solid growth in construction-related andpower infrastructure sectors, we have significantly
revised the upside of target values for the final yearof the plan

Factoring in a recovery in demand from FY2024 and beyond
despite the impact from reduced automotive production overthe past two years, we have left target operating income
unchanged for the final year of the plan

Factoring in delayed plans for wire harnesses andprecision devices despite strong performance ofcommunication cables, we have revised target values
downward for the final year of the plan

Net sales and operating income (100 million yen)
Rolling Plan targets

Net sales and operating income (100 million yen)
Rolling Plan targets

Net sales and operating income (100 million yen)
Rolling Plan targets

107

1,232

80

Price of copper
Estimated at
1,250 yen

112

Price of copper
Estimated at
1,250 yen

1,148

1,240

16
553

979
Construction
related

820

830
617
Announced
in November
2021

Other high-performance
products

Electric power andinfrastructure

336

303

360

Seismic isolationand other products

66

59

60

Copper price (yen/kg)

High-performance
products
Oxygen-free copper

FY2023

FY2026
Target Before the
Rolling Plan

FY2026
Rolling Plan Targets

1,262

870

1,250

General purpose
products

274

66

26

833

26
730

428

614
350

307

325
Announced
in November
2021

441

140

Communication
cables168

240

FY2023

FY2026
Target Before the
Rolling Plan

FY2026
Rolling Plan Targets

870

1,250

180
Announced
in November
2021

185

180

98
190

35
360

14

212

Copper price (yen/kg) 1,262

45

Price of copper
Estimated at 1,250 yen

115

Wire harnesses

83

Precision devices

57

68

60

FY2023

FY2026
Target Before the
Rolling Plan

FY2026
Rolling Plan Targets

1,262

870

1,250

Copper price (yen/kg)

12

Rolling Plan 2024:
Business Investment Plan and Timing of Profit Contribution
We will introduce a Group-integrated system from FY2024 onwards and promote business streamlining. We will also strengthen investments
in human capital, including welfare facilities. In FY2026, we will expand capital investment in the Energy and Infrastructure Business.
Operating income target

Capital investment (after Rolling Plan)
Plan Before the Rolling Plan
Cumulative Investment
from FY2022 to FY2026

31.0 billion yen

Plan After the Rolling Plan
Cumulative Investment
from FY2022 to FY2026

36.0 billion yen
Investment in long-term renovation
and renewal:
12.4 billion yen(100 million yen)

DX investment, etc.

Increased production andnew investments
Long-term investment /renewal investment

57
43
7
1
17

13

2.0 billion yen

DX investment, etc.:

9.0 billion yen

24

6

31

23

4

FY2022

250

15

170
39

128

16
31
37

18

80

7

2

Increased production andnew investments:
12.6 billion yen
R&D, etc.:

90

90

R&D

(100 million yen)29

29

FY2025

FY202611
FY2023

FY2024FY2023

FY2026
Target after the
Rolling Plan

2030

13

Rolling Plan 2024: Key Points of the Cash Allocation in the Rolling Plan
We have improved the ability to generate cash over the past two years by improving capital efficiency throughenhanced earning capabilities, a reduction in working capital and the sale of non-operating assets. Therefore in the rollingplan, we will work to invest in business expansion that leads to future cash flow and enhance shareholder return.
After the Rolling Plan
(Cumulative Amount from FY2022 to FY2026)

Before the Rolling Plan
(Cumulative Amount from FY2022 to FY2026)
Cash inflows

Cash flows fromoperating activities
61.7 billion yen

Cash outflows

Cash inflows

Cash outflows
Capital investment
Machinery and equipment,
etc.:
25.0 billion yen

Business investment
51.0 billion yen

Cash flows fromoperating activities
69.0 billion yen

Business investment,
etc.
62.0 billion yen+

DX investment, etc.:
6.8 billion yen
BD investment

Shareholder returns
10.7 billion yen

FY2026 shareholder returns
Dividend payout ratio of
approx. 35%
Dividend per share of
120 yen or more

Human capital investment
Welfare facilities, etc.:
2.2 billion yen

M&A activities, etc.:
20.0 billion yen+

Procurement ofinterest-bearing debt
2.0 billion yen+
Sale of crossshareholdings
Real estate, etc.

Sale ofnon-operating assets
11.5 billion yen

Other (increase in cash on
hand, etc.)
6.5 billion yen

Shareholder returns
20.5 billion yen

Shareholder returns policy
Dividend payout ratio of
35% or moreand
DOE of4% or more

14

Medium-term Management Plan: Change in Market Valuation
Regarding "action to implement management that is conscious of cost of capital and stock price," we will seek
more in-depth dialogue with investors and firmly establish a PBR of 1x or higher.
Medium-term Management Plan FY2022 to FY2026
Rolling Plan 2024

Appointmentof president

FY2024-FY2026●

Doubling of market

1,500 target

capitalization

PBR of 1x or more

Market capitalization (100 million yen)

1.51

PBR (x)

1200

1.02
800

0.96

0.76

0.84
1,150

0.60
400

0

210

300

FY2018FY2019

490

560

570

FY2020

FY2021

FY2022

FY2023●Growth potential of business●Non-financial information●Capital policy
Enhance information disclosures with afocus on:* Disclosure materials also selected as Tokyo
Stock Exchange best practices

We will continue to pursue enhanced
dialogue with investors in the future

FY202615

2. Priority Measures in Rolling Plan 202416

Rolling Plan 2024: Priority Measures to Enhance Corporate Value
Rolling Plan 2024: Priority Measures
Business model evolution

Strengthened ability to generatecash flow through the promotion
of ROIC-oriented management

Enhanced
corporate
value andshareholder
value
FY2026 target

EBITDA margin: 9％ or above

Strengthening investment in focus businesses andutilizing M&A activities

Achieving the optimum capital structure

Optimizing the cost of capital
Controlling WACC in the 6% range

Operating income:17.0 billion yen or more
ROIC: 10% or more

Strengthening business portfolio management

Stable dividends with a dividend payout ratio of atleast 35% and DOE of at least 4%, combined withflexible acquisitions of treasury stock
Expanded investment in R&D

Investment in intangible assets
Improving the ability to generate cash
flow in the medium- and long-term

Expanded investment in human capital17

Rolling Plan 2024: Evolution of Our Business Model to Achieve the Vision
FY2022-FY2023
Comprehensive electric
wire manufacturer
Core technologies cultivatedsince our founding andrelationships of trust withcustomers

Supporting
growth as a cash
cow businessMedium-term
Rolling Plan 2024
Provision of highvalue-added products

Toward improving
profitability with highvalue-added products anddownstream strategy

Our Vision for 2030
Solution-oriented
proposals

Providing solutions
that contribute to laborsavings and power
conservation

Steps toward business model evolution
Evolution of coretechnologies

Transforming thecorporate culture Evolution of coretechnologies

 Acquisition of new coretechnologies
 Utilization of M&A

 Collaborative creation withother companies
 Use of in-house ventures
 Utilization of M&A

 SWCC Purpose In-house venture system
 New executive officer
system Toward a corporate culturethat takes on challenges
without fear of failure to
generate new things

Developing intoa business thatsolves social
issues18

Rolling Plan 2024: Strengthening Business Portfolio Management
In light of the current positionings on a sub-segment basis, we will strengthen business portfolio management
over the course of the Medium-term Management Plan up to FY2026.
Business portfolio as of FY2023
Big

New market andnew domain
businesses

Growth driver businesses

Growth potential
Small

Electricity

Seismic isolation

Construction

Industrial devices

Assess businessturnaround andbusiness retention

Problembusinesses
Small[Power]Work to expand business through proactive growth investment instrategic products[Construction]
Enhance earning strength through DX promotion and pursue cash
cow business in greater depth[Industrial Devices and Communication]
Enhance growth potential and profitability while working to transform
into a growth driver business[High-performance Products]
Aim for business expansion in line with growth of the xEV market

Strengthen growth investments to accelerate growth

Improved productivity
through theenhancement of highvalue-added products

Communications

Business portfolio management over the course of
the Medium-term Management Plan

Identification ofproblem businesses

High-performance
products
General purpose winding wires[Seismic Isolation]
Recognized as a problem business due to expected slowdown ingrowth potential and profitability

Creation of stable cashflowsCore businesses
ROIC spread by business

Assess business turnaround and business retention● Competitive advantages● Capital efficiency ● Growth potential● Our vision ● Synergy with other businesses

Big[General Purpose Winding Wires]
Recognized as a problem business due to expected earnings decline
due to intensifying competition

SWCC Group ROIC Calculation Formula
Corporate ROIC = Operating income after tax ÷ invested capital (shareholders' equity + interest-bearing debt) / Business-specific ROIC = operating income after tax ÷ invested capital (working capital + fixed assets)

19

Rolling Plan 2024: BD Strategy (New Business and M&A Activities, etc.)
We will strengthen our Business Development Strategy (inorganic growth), an upside element to the Rolling Plan 2024
targets (organic growth), aiming to contribute to profit between FY2026 and FY2030.
Operating Income (100 million yen)
Targets

BD Strategy by Segment: Priority Measures+ additional (Inorganic Growth)Target domains where SWCC can apply its strengths
and complement new domain technologies and its
customer baseEnergy andinfrastructure

Strengthening the solution
business
Smart Stream Business +Utilization of M&A → page 24

Electricalequipment andcomponents

Strengthening of downstream
strategy
Pursuing core technologies ingreater depth + Utilization of
M&A → page 28

Communicationand industrial
devices

Expansion of overseas business
areas
Enhancement of strategic
products + Utilization ofpartnerships → page 31+ additional

Inorganic growth
FY2026-FY2030•Total amount of growthinvestments
20.0 billion yen+128

+ additional

Organic growth
FY2026170

250•Total amount ofbusiness investments
9.0 billion yen•Operating income
expected
17.0 billion yen

FY2023

FY2024FY2025

FY2026

FY203020

3. Business Strategy

21

Rolling Plan 2024:
Growth Strategy for the Energy and Infrastructure Business (1)Market Forecast FY2024-FY2026• Increased demand due to redevelopment
activities in the Tokyo metropolitan area
• Higher demand for new factory
Construction construction and the Osaka Expo
• Lengthened construction schedules due tolabor shortages

Electricity

Medium-term Rolling Plan Targets

Capital Investment Plan

Net sales and operating income (100 million yen)

45
40
35
30
25
20
15
10
5
0

107

• Expanded demand to upgrade aging
equipment• Growth in demand to expand powertransmission and distribution networks• Withdrawal of competitors• Expansion of demand for offshore wind, etc.
• Growth in demand for large-scale data
centers

1,232

Construction
related

830

112
102

1,240

1,195

Expected
price ofcopper
1,250 yen

• Raise profitability with differentiatingproducts (high-end disaster resilient
Construction cables, workload-reducing cables)• Improve profitability by implementing

Electricity• Maximize contributions from investments
in increased production of SICONEX®
connectors for high-voltage power cables• Promotion of human resources training• Promotion of solution-oriented
businesses (Smart Stream)Powerinfrastructure
Seismic isolationand other products

336

340

360

66

55

60

FY2023Results

FY2024
Plan

19

FY2024Plan-

FY2026
Target After the
Rolling Plan

ROIC

12.3%

12.5%

12.8%

WACC

4.5%

5.0%

5.3%

FY2025Plan

FY2026
Plan

Comparison of FY2023
and FY2026 Portfolios
Growth Potential: Net Sales CAGR

Basic Strategy

42

26

820

800

(100 million yen)

●FY2023●FY2026＋
Electricity
Seismic
isolation

Constructionーー+Profitability: ROIC Spread

22

Rolling Plan 2024:
Growth Strategy for the Energy and Infrastructure Business (2)Enhancement of our strategic products and solutions (SICONEX®/SICOPLUS®) to meet growing demandfor electric power driven by national policies
Profit expansion
Forecast of the domestic electricity market (based on SWCC research)

strategy 1

2014 onwards: Strengthening and taking action on aging (National Land Resilience Plan)
2020 onwards: private-sector renewable energy investment (publicly
solicited offshore wind power)
Transformers coming
due for renewal during
our Medium-termManagement Plan
Aging distribution of transformers(66 kv - 500 kv, oil-filled)(Million yen)
6,000,000

Forecasts of the data center
market2023-2028 CAGR 6.8%2023 onwards: Revenue Cap
systemTransformers [units]

5,000,000
Results of units
replaced or newly
installed in thepast year: approx.
260 units / year

Products• Made into the de facto standard• Enhancement of ultra-high voltage SICONEX®
• Consideration of further investments in increased
production

People• Construction human resources center• Expanded alliances with construction companies• Transitioning internally-trained employees to workon ultra-high voltage

2022 onwards: expansion of the data center market
2023 onwards: Development of
renewable energy transmission
networks<Results of study into unevenly
distributed power supply scenario(45GW)>

6-7 trillion
yen

4,000,000

DX

3,000,000

Three measures for the electricity market• Educational support through use of AVR• Remote support, management solutions

2,000,000

SICONEX® Sales Growth Plan

1,000,000

Source: Organization for Cross-regional Coordination ofTransmission Operators, Japan (OCCTO),
Aggregation of Electricity Supply Plains for FY2024

02022 2023 2024 2025 2026 2027 2028
Source: Data Center Business Market Research Overview 2024
<Market Edition> Fuji Chimera Research Institute, Inc.
* 2023 figures are expected values, figures for 2024 andbeyond are forecasts.

FY2030240

Source: Organization for Cross-regional Coordination of Transmission
Operators, Japan (OCCTO) Long-term Policy for Wide-area Grid
System (Master Plan for Wide-area Interconnection Grid)<Supplement (Reference Edition)>

FY2023-FY2026 Transformer market CAGR: 11%, SWCC CAGR: 18% *Based on SWCC researchElectric power

SWCC's company demand
sectorshare Privatecompany demand

FY2023

FY2024FY2026

FY2030

51%

58%

71%

88%

93%

93%

94%

95%

FY2023100

FY2024135

FY2026200* When FY2023 results are indexed to 100

Construction Personnel Plan

FY2023 FY2024
100
115

FY2030130
FY2026125

Cooperation with nationwide
construction companies* When FY2023 results are indexed to 100

23Rolling Plan 2024:
Growth Strategy for the Energy and Infrastructure Business (3)Profit expansion
strategy 2

Roll out of Smart Stream to electric power companies(promotion of the solution business)

Challenges facing theelectric power industry:Building resilience
Extending and developing
wide-area power transmission
and distribution equipment
Aging equipment
Improving productivity andensuring safety

Ensuring construction supply capabilities
Preventing incidents

AI (image /forecasting)

Providing solutions offering safety and peace of mind
(technical skills transfer, improved efficiency,
elimination of occupational accidents)
Upside plan underthe BD strategy

Reducing labor required for equipment maintenanceand streamlining equipment management

Remote support andmanagement

Image
AI

AVR

Developing a lineup of solutions
AVR

Development of a solution business

Sensing

Sensing

Predictive
AI

Acquisition of
resources and newtechnologies

RemotesupportExpandingthe SICONEX market

Business of selling goods(Base load)24

Rolling Plan 2024:
Growth Strategy for the Energy and Infrastructure Business (4)In building-related businesses, which account for 40% of Group sales, we will promote DX using ROIC as
an indicator to improve profitability. This will expand the contribution to Group profit.
■ Implement DX across departments, leading to improved ROIC

1. Improve gross profit through enhanced
customer convenience and service

Threepillars ofimproved
revenue

Operating margin

ROIC

Major KPIs

Department in charge

Gross margin
by product type

Manufacturing
department

Warehousing andtransportation cost ratio

Administration
department

Inventory
turnover period

Manufacturing
department

Accounts receivable
turnover period

Sales
department

Capital turnoverratio

2. Building demand-linked production andsupply systems■ Effects of improved ROIC through DX adoption

3. Business process improvements throughAI and data utilization

Number of days forinventory turnover
Profit contribution(Compared to FY2021)
CCC

FY2022

FY2023

FY2026
Targets

42 days

42 days

36 days

0.5
billion yen

0.57
billion yen

1.0
billion yen

82 days

72 days

72 days25

Rolling Plan 2024:
Growth Strategy for the Electric Equipment and Components Business (1)Market Forecast FY2024-FY2026
Highperformance
products

Medium-term Rolling Plan Targets
Net sales and operating income (100 million yen)

• Expanding recovery of demand for
HEV despite a slowdown in BEV
adoption• Widespread adoption of CASE
• Growth in demand for motors

26
16

730

Other highperformance
products
Generalpurposeproducts

350

330

10

8

0

FY2024
Plan

274

66
212

FY2023Results

14

5

553
Highperformance
products
Oxygen-freecopper

16

15

140

100

240

FY2024
Plan

240

-

FY2026
Target After the
Rolling Plan

ROIC

6.4%

6.8%

8.6%

WACC

4.2%

4.6%

4.6%

FY2025Plan

FY2026
Plan

Comparison of FY2023
and FY2026 Portfolios
Growth Potential: Net Sales CAGR

Highperformance
products

18

20
Expected
price ofcopper
1,250 yen

670

Basic Strategy• Building a flexible system for BEV
and HEV adoption• Development and manufacturing of
new high value-added products• Launch of green vehicle winding
wire (CO2 reduction)• Increased production of heater wires• Development of probe pins forsemiconductors• Joint development with Tohoku
University• Structural reforms(Development of an integrated
production system for heater wires:
FY2025 onwards)

Capital Investment Plan (100 million yen)

●FY2023●FY2026＋
High-performance
productsーGeneralpurposewinding wiresー+Profitability: ROIC Spread26

Rolling Plan 2024:
Growth Strategy for the Electric Equipment and Components Business (2)We will shift from an upstream to downstream strategy, increasing profit by shifting positioning to highvalue-added products that take advantage of our strategic products and core technologies.
Areas of Focus

Our Strengths

MiDIP®

Wire rods

Products(Products and CoreTechnologies)

Insulation
technology
High-frequency
technology
Processing
technology

Flat winding
wires

Semi-finished goods

Copperalloys

Probe pins

Fire resistantbus bars

Power supply
coilsHigh heat resistance, high voltage, highefficiency

High flexibility, highdurability

High conductivity,
high durability

High voltage,
workabilityHighefficiency

Conductors for automotive motors

Heater wires

Semiconductor
inspection tools

Electric vehicles

Contactless
power supply

Use

Copper alloys

MiDIP®

Winding wires

Plan forFutureProfitExpansion● Flat winding wire: increased production plan
● Green vehicle winding wire: (material, fuel, equipment CO2 reduction)● Heater wire: increased production plan
● Probe pins for semiconductors: Launch of wire in FY2023, mass production starting FY2026● Fire resistant bus bar: Developed by applying the Group's expertise in fire resistance, expected to enter mass
production in 2027
● Contactless power transfer: Provided for Japan's first public road demonstration
testing in 2023, aiming for commercialization in 2030

Profit expansion
27

Rolling Plan 2024:
Growth Strategy for the Electric Equipment and Components Business (3)Profit expansion
strategy 1

Green vehicle winding wire

Begin sales of green vehicle winding wire from2025 against the backdrop of demand for low
carbon materials from customers
2030
2025
2024

Expand sale of green vehicle
winding wire

Sales launch of green
vehicle winding wire

Application of green energy
First introduction in Japan, production
using high-efficiency equipment

Scope 3 (Cat. 1)
For amount of procured
materials
reduction of up to 50%*

Production using
existing methods

Have greenhouse gas emissions(Scope 1 + Scope 2) verified by athird party organization

Increased productionof heater wires

Expansion of the alloy wire domain:
collaborative
research with Tohoku University
Anticipate global expansionof demand and strengthen
investment in increased
production and enhance lineup

Enhance the lineupof heater wires as adownstream
strategy

Profit expansion
strategy 3

Consolidate the process from basic research at
Tohoku University to product development andmanufacturing at SWCC in the Sendai area to develop
next-generation technologies and products.

Development and mass
production of probe pins

Target high revenue markets utilizing SWCC's unique characteristics(high conductivity and hardness)<Roadmap>

Scope 1 + Scope 2
80% reduction for amount of fueland electricity consumption** Limited to automotive winding wire

2023

Profit expansion
strategy 2

FY2026 target
Development of mass
production of pins

Semiconductor
inspection probe
Advanced logic / special
automotive applications

FY2024-FY2025 target
Pin commercialization andacquisition of customers
FY2023 result
Launch of wire for pins

Upside plan underthe BD strategy

Incorporate downstream
processes to expand
profit28

Rolling Plan 2024:
Growth Strategy for the Electric Equipment and Components Business (4)We also expect an upside to shipping forecasts through the development and increased productionof high added value products with high profit margins
Change in shipping volume by high-performance product category(Pre-pandemic levels estimated to an index of 100)

200%

150%

Rapid upward
recovery phase

Declaration of a state of emergency

Outbreak and spread of COVID-19

250%

1600%

2.2 times

1400%

14 times

1200%
1000%

1.2 times 800%

100%

600%
400%

50%
200%
0%

FY2019FY2020MiDIP® (Left axis)
MiDIP®(左軸）

FY2021

FY2022

FY2023

Heater wire (left axis)
ヒータ線(左軸）

FY2024FY2025

FY20260%

High-performance winding wire (right axis)
高機能巻線(右軸）❶ Strengthen strategic product branding through thedevelopment and manufacturing of green vehicle
winding wire, anticipating rapid expansion ofdemand.

❷ Anticipate expanded demand in the heater wire●

sector and plan to invest in significant production
increases from FY2025 onward.

❸ Began entry into the semiconductor market (probe●pins) in FY2023 (market launch in Taiwan complete),shifting to mass production from FY2026 onward.

❹ Promote the development of high value-added

product lines through the establishment of the
Mobility Development Center and roll out anintellectual property strategy through utilization of the
IP landscape.

29

Rolling Plan 2024:
Growth Strategy for the Communication and Industrial Devices Business (1)Market Forecast FY2024-FY2026

Medium-term Rolling Plan Targets• Increase in telecommunications
equipment and traffic
Communications • Expansion of overseas telecomand datacom markets• Growth of the ADAS market

Net sales and operating income (100 million yen)

• Slight uptick in Japanese home
appliance demand• Slowing home appliance market
expansion in China andIndustrial devices Southeast Asia
• Greater demand for high-end
home appliances• Diversification of commercial
printing demand

Capital Investment Plan (100 million yen)
12

35
14
307
Communication
cables 168

22

360

330

8
Expected
price ofcopper
1,250 yen

6

FY2025Plan

FY2026Plan

2
FY2024
Plan

185

175

6

4

Comparison of FY2023 andFY2026 Portfolios
115

98

60

57

Results

FY2024Plan-

FY2026
Target After the
Rolling Plan

ROIC

4.4%

7.2%

11.0%

WACC

5.6%

6.0%

5.9%

Growth Potential: Net Sales CAGR

• Wire harnesses and precision
devicesIndustrial devices • Expansion of (roller) businessdomain60

Basic Strategy• Capturing of robust demand for
Wire harnesses 83
office LAN• Investment in increased
Communications production of automotive highPrecision devices 57
speed communication cables• Development of new partners
for e-Ribbon®
FY202310

10●FY2023●FY2026＋

Industrial
devices

Communicationsーー+Profitability: ROIC Spread30

Rolling Plan 2024:
Growth Strategy for the Communication and Industrial Devices Business (2)Profit expansion
strategy 1

Expanded entry into the automotive
high-speed communication market

Profit expansion
strategy 2

Automotive camera market
TargetMarkets

Winning
Strategy
Story

In the realization of advanced driver assistance systems(ADAS) and autonomous driving systems (ADS), viewing
cameras and sensing cameras contribute to improved
safety and the widespread adoption of autonomous
driving technologies

TargetMarkets

Partner strategy with Tier 1 partners (domestic
and overseas)
Collaboration with leading Tier 1 partners
Enhanced lineup of automotive high-speed transmission
cable types
Strategy for high added value by
incorporating extra features in cables

Mobility<Product Superiority>• Achieves high-speed data transmission with stabletransmission and high frequencies with low latency
and noise resistance for cameras with increasingly highresolutions and enhanced functionality• Ensures advanced automotive environmental performance(oil and chemical resistance, abrasion resistance, temperature
resistance, etc.)

Winning
Strategy
Story

e-Ribbon® overseas partnership strategy

Telecom and datacom markets

North America: Increased demand due to booming FTTx and DC
markets and compliance with Build America, Buy
America (BABA) requirements.
Europe:Solid demand will continue despite slowdown of FTTx
market growth
Asia:
Expanded demand toward the Taiwan FTTx market andincreased demand due to the booming Asia DC market

Overseas partnership strategy utilizing technologicaladvantages

We will utilize our technological capabilities that make us one of only
five companies in the world capable of mass production and roll out
a local-production-for-local-consumption strategy through overseas
partnerships.

<Product Superiority>• Outer diameter reduced by up to 34%• Weight reduced by up to 40%• Capable of simultaneousadhesive bonding with flexible
ribbons

World
class

Upside plan underthe BD strategy

World
class

Building overseas
partnerships that maximize
technological advantages

31

Rolling Plan 2024:
Growth Strategy for the Communication and Industrial Devices Business (3)Profit expansion
strategy 3

Strengthened competitiveness and multifaceted expansion
through overseas partnerships for wire harnesses

To DateSpecialization in products for highgrade home appliances producedby leading Japanese manufacturers

Future Growth Strategy

Good
relationships
with Japanesecompanies

Strengthening competitiveness through Chinese joint
venture company established with motor manufacturer

Enhanced competitiveness through cost
reductions and quality improvements(High-grade home appliances)

Promotion of stable supply through thedecentralization of sites(2024 launch)JIAXING

Progress made in structural reforms(1) Diversification of production
sites(Two sites in China, one site in Vietnam)(2) Promoting local procurement,
and local production for local
consumption(FY2022 Chinese site procurement rate: 74%)

DONGGUAN
HUNG YEN

For high-end home appliances
For regular home appliancesMulti-faceted expansion through a Chinese joint
venture company established with an automotive
components company and autonomous driving
software development company
Rapid entry into the ADAS-related component
market through collaboration with a company thatdevelops automotive sensors and radars(2024 launch)

For autonomous driving

32

Rolling Plan 2024: Strategy for the Overseas Business
Growth of the overseas business was delayed from our initial plans. We will accelerate growth ofthe overseas business by implementing new additional measures.
Results During the Medium-termManagement Plan

Challenges During Rolling Plan
2024

• Established a local-production-for-localconsumption model for wire harnesses andprecision devices• Established a wire harness joint venture• Expansion into the automotive components
field• Expansion of the precision device (roller)
field• Establishment of partnerships in anticipationof a new overseas expansion for e-Ribbon®
• Further strengthening overseas governance■ Overseas net sales (100 million yen)and percentage of overseas sales
14%
295

8%

Planned upside
under the BD
strategy

10%
250

178
Ongoing Measures

Parallel expansion withJapanese customers
Entry into new markets

Additional Measures in Rolling Plan 2024
Enhancement of theoverseas business
utilizing producttechnologies

Development of newpartners in the overseas
business

Head offices for each overseas region(strengthening governance and investment efficiency inthe overseas business)

FY2023

FY2024FY2025

FY2026FY2026
Target Before Rolling Plan
the Rolling
Targets
Plan

33

4. Capital Policy and Financial Strategy

34

Approach to Financial KPIs
FY2026 Targets
Toward a market capitalizationof 150 billion yen
Rating of A- or higher

Improved
corporate
value andshareholder
value
Total shareholder return

TSR expansion• Increase in the shareprice• Increased dividends

Outperforming TOPIX(including dividends)

Expanded equity spread• ROE of 14% or more

Improved cash flow

• EBITDA margin of 9％ or above• Improved CCC of 80 days or less* Cost of shareholders' equity assumed to be
9% or lower

Improved asset
efficiency

Enhanced shareholder
returns• Dividend payout ratio of 35%
or moreand• DOE of 4% or more

• ROIC of 10% or more
• Business portfolio management

Optimized cost of capital• D/E ratio between 30% and 50%• Capital adequacy ratio of around50%• WACC controlled in the 6% range

35

Cash Allocation
In addition to generating business revenue, we will also make progress in reducing non-operating assets inan effort to enhance growth investments and shareholder return.
Additionally, for major investments such as M&A actions, we expect to apply a certain degree of leveragethrough debt financing from the perspective of reducing WACC.
Cash inflows(cumulative total from FY2024 to FY2026)
Promotion of ROIC
management

Building the optimum
capital structure

Cash flows fromoperating activities

47.0 billion yen
Procurement of interestbearing debt

Cash flows frominvesting activities, etc.
(Capital investments andM&A, etc.)

49.0 billion yen+

12.0 billion yen+
(D/E ratio: 30-50%)

Sale of crossshareholdings, etc.

Cash outflows(cumulative total from FY2024 to FY2026)

Disposal of nonoperating assets

5.0 billion yen

Shareholder returns

15.0 billion yen

Allocation of
investment throughbusiness portfolio
management

Dividend policy
based on a dividend
payout ratio of atleast 35% and DOE
of at least 4%

36

Shareholder returns
In addition to dividends based on a dividend payout ratio of at least 35% and DOE (dividend on equity) of atleast 4%, we will consider the flexible acquisition of treasury stock, comprehensively taking into accountfinancing needs for growth investment and other factors.
Trend in dividends per share (yen) andthe dividend payout ratio
Shareholder return policy
36.1%
30.3%

Dividend payout ratio of at least 35%
and DOE of at least 4%
Taking into account the situation with accumulating
shareholders' equity, we have set a new DOE(dividend payments divided by shareholders' equity)
as the minimum threshold for dividends, to ensurethat a certain level of return is provided toshareholders even if a downturn in earnings has
occurred.

35.0%

12.0%

16.0%

150

19.1%

110
90

50

60

20
FY2020

FY2021

FY2022

FY2023

FY2024Plan-

FY2026
Rolling Plan
Targets37

5. Strengthening Intangible Assets and the Management Base

38

Sustainability Management
Through trust and innovation, we will seek to solve social issues and enhance corporate value, creating asustainable and prosperous future society.
Material Issues of the SWCC Group: Social Issues to be Tackled by SWCC with High Priority[Technology]
Creating
Our future[Environment]
Being friendly to
Our earth[Community]
Our partnership towork together[People]Helping Our people
shine[Governance]
Our governance forbetter company

Our future

Our earth

Our partnership

Our people

Our governance

We will help realize
sustainable communities,
revitalizing local
communities.

We will provide equal
employment
opportunities and aplatform to take on new
challenges, fostering the
growth of individuals andthe organization alike.

We will develop agovernance structure inwhich risk management
and compliance arestrengthened andcorporate value is not
impaired.

We will realize a more
prosperous society withkey technologies that
help solve social issues.

We will contribute toenvironmental action
throughout the supply
chain to help mitigate
climate change.

39

Strengthening Research andDevelopment

Base technologies
Material
technologies
Production
technologies

Promoting collaboration with
universities, open innovationand M&A to advance new
business creation efforts

Simulation,
AI and databaseacquisition

Exploring
technologies
and pursuingthem ingreater
depth

Evaluation
technologies

In-house
R&D

Target Business Model

Utilizationof M&A

Data business andsolution business
Enhancing basetechnologies

We collaborate with
universities, research institutes
and startups to improve our key
core technologies and basetechnologies, including copper
alloys.

Open innovation

Collaboration with outstanding startups
that possess cutting-edge technologies
and business models
Accelerating development throughcollaboration with partners who possess
specialized knowledge

Informatics
K-PRO high-speed
horizontal furnace

Designing material
compounds through MI[Tohoku University Co-creation
Research Center]
R&D and human resource
training on copper alloys andother innovative materials

Current Business Model

Comprehensive electric wire manufacturer

40

Contributing to a Decarbonized Society
We implement a range of measures at our manufacturing sites in Japan, from the introduction of renewable energy andpromotion of non-fossil fuel-derived energy procurement to the installation of high-efficiency, labor-saving equipment driven
by new technologies, and working with our business partners to reduce emissions derived from materials (Scope 3
Category 1). These are part of our efforts to achieve carbon neutrality by 2050.
Roadmap to Carbon Neutrality by FY2050

Expression of support for the TCFD recommendations

Scope of GHG Protocol Calculation

100%
CO2 emissions(Scope 1 and 2 in Japan)-37%(Compared to the FY2013 level)

Main initiatives to achievecarbon neutrality-38%(Compared to the FY2013 level)-45%(Compared to the FY2013 level)-50%(Compared to the FY2013 level)

50%

Renewable energy
adoption rate

• Improving the renewable energy
adoption rate at production sites• Introducing energy efficientmanufacturing equipment• Expanding the number of registeredenvironmentally friendly products

30%(including non-fossil-fuelderived energy)
7%
6%Actual GHG Emissions in FY2022

Achieving carbon neutrality

CO2 emissions(thousandt-CO2)

Share

Scope 1 (fuel use)

8.8

1.5%

Scope 2 (power use)

40.5

7.0%

Category 1: Purchased goods and services

478.3

82.2%

Category 2: Capital goods

15.4

2.6%

Category 3: Fuel and energy-related
activities not included in scope 1 or 2

9.7

1.7%

Category 4: Transportation and distribution(upstream)

4.1

0.7%

Scope
Category 5: Waste generated in operation
3

1.8

0.3%

Category 6: Business travel

0.8

0.1%

Category 7: Employee commuting

0.9

0.2%

Category 9: Transportation and distribution(downstream)

0.1

0.0%

Category 12: End-of-life treatment of soldproducts

21.8

3.7%

582.2

100%

Scope 1 + 2 + 3 Total

41

Human Capital Management:
Shaping an Organizational Culture in Which People ShineThree Pillars of Our Human
Resources Strategy

Issue

Direction of actions

OutcomeRenewing theorganizational
culture• Promoting diversity• Improving engagement• Renewing the culture (climate, organizational
culture)Improving psychological safety
Eliminating the bias toward maintaining thestatus quo
Fostering a culture that supports challenges

A mindset that realizes
changeTaking on new challenges

Creatingmechanisms toinvest inhuman capital• Revisions to hiring, assignment and transfer,
evaluation, compensation, training andresignation processes• Personnel shortages → labor saving andimprovements to productivity per person• Sharing value between employees and thecompany (revitalizing shareholding
associations)

Producing innovation
through newchallenges

Sustainable growth

Transforming
personnel
departments• Reactive  Proactive• Labor and operational management 
strategic HR• Short-term perspective  Long-term
perspective

Improving value
creation capabilities
through individual andorganizational growthEndless reforms

42

Key Measures to Transform Our Corporate Culture
The corporate culture we envision:
A culture that promotes change & growth to produce further value creation

Next-generation manager succession plan
We aim to ensure sustainable growth while maintaining anddeveloping a solid management structure from a medium- tolong-term perspective.
1. Clarification of the qualities
required to be a corporate
officer
Selections are made basedon five perspectives• Mindset• Relationship building• Vision• Knowledge and skills• Decisiveness and ability totake action

2. Next-generation manager
selection process
Candidates are selected by the CEO withfinal decisions being made by the
Nomination and Compensation
Committee.

3. Next-generation manager
training process

Company directors serve as instructors
and provide seminars to junior employeesthat have been recommended by theheads of business segments and selectedby the CEO.

Internal venture scheme
We strive to build systems enabling employees to speedily turn theirideas into business endeavors, creating new business models notpresent in our existing businesses.

Kaeruya: The industry's first cable e-commerce site
• The project was started based on the ideathat a service adapted to an increasingly
digital age would be needed in contrast to
traditional business practices whereorders are often placed by telephone or
fax machine.
• By developing a platform for the Group's
products in a digital world and building
new sales methods, we aim to analyze
digitalized customer needs and provide
new services.

43

New Executive Officer System
Building a new system to swiftly solve the Company's issues and boost earning capabilities in order to achieve
the Medium-term Management Plan
Takayo Hasegawa

Tetsuo Komata

Leading the Group to becoming a company thatcreates even more value

Speeding up business management

Executive President and Representative Director (CEO)Supervising Group Management, in charge of quality supervision

Senior Executive Vice President and Representative Director (COO)
In charge of Group management strategy, BD strategy, IR strategy,
and Domestic and Overseas Group Company Management

Yukio Kawase

Takashi Yamamura

Nobutaka Imai

Toshiharu Kamijo

Further strengthening growth
driver businesses

Strengthening
sales structure

Streamlining the operationof head office functions

Bolstering our capital and humancapital strategies

Senior Executive Officer
Chief of Energy and Infrastructure
Business Segment
President and Representative Directorof Showa Furukawa Cable CO., LTD.

Senior Executive Officer
In charge of sales
coordination andmaterial procurement

Kiyoshi Otake

Rebuilding thecommunication business

Expanding the industrial Strengthening the electric
Promoting the solution Improving earnings capabilities Bolstering R&D and IP
device businesspower infrastructure business businessthrough downstream strategy strategy

Executive Officer
Assistant Chief of theCommunication andIndustrial Devices Business
Segment, in charge ofindustrial devices

Executive Officer
Assistant Chief of the Energy andInfrastructure Business Segment,in charge of the Electricity
Business

Nobuyuki Sema

Executive Officer
In charge of Smart
Stream Business andElectric Power System
Strategy

Yoshiteru Akimoto

Managing Executive Officer
In charge of capital strategy,
personnel affairs, human capital
strategy, general affairs, legal affairs
and risk management

Kazuhiko Inoue

Executive Officer
Chief of the Communication andIndustrial Devices Business Segment
President and Representative
Director of FUJI ELECTRIC CABLE
CO., LTD.

Shigeru Toyama

Managing Executive Officer
In charge of finance,accounting, auditing andshared services

Executive Officer
Chief of Electrical Equipment andComponents Business Segment

Yuichi Morishita

Executive Officer
In charge of technology
planning, research anddevelopment, andintellectual property
strategy

Expected structure following approval at the ordinary general meeting of shareholders to be held on June 25, 2024

44

Designing an Officer Compensation System Cognizant of the
Link to Improved Corporate Value (FY2024)
Compensation and decision-making process that
ensures transparency and objectivity
The Board of Directors determines officer compensation,
taking into account the deliberations and reports of theNomination and Compensation Committee, a nonstatutory committee whose members consist entirely of
independent outside directors.

Selecting indicators that are strongly linked withenhancing corporate value
Financial (Company Performance)• Operating income• ROICFY2024 compensation ratio

FY2023 compensation ratio

Performance-linked
compensation
25%

Performance-linked
compensation
23%
Fixed
compensation
66%

Restricted stockcompensation
11%

Future direction

Fixedcompensation
61%• Renewable energy adoption rate
• Greenhouse gas emissions• Frequency rate of lost-time injuries• Engagement score

Dynamic compensation system(company performance)

Expanding the performance-linked ratio
Expanding the performance-linked compensation ratio andbeing aware of the link with shareholder value

Non-financial (ESG)

Payment rate
150％

Incentive curve(Fluctuating between 0% and 150%)

100%
Restricted stockcompensation
14%

Toward compensation levels and a system design(performance-linked ratio, indicators, etc.) ensuringthat the human resources needed to achieve thelong-term vision can be secured and retained

50%0％Target achievement rate45

Initiatives for Strengthening Governance
Development of operatingcompanies andcorporate name change

2023
Establishment of a chairperson of the Board
Introduction of a restricted stockcompensation system
Shifted to a company with Audit andSupervisory Committee
Strengthened the authority of executive officers
Eliminated director positions
Eliminated the consultant system
Introduced a business segment structure
2018

2015

2013

2006

2020

2019
Establishment of the Nomination Committee
Establishment of the Compensation Committee
Assessment of the effectiveness of the Boardof Directors begun

Composition of the Board of Directors
Diversity in the Board of Directors with morethan half the Board comprising independent
outside directors

3 executive directors

Chairperson (COO)(CEO)

Full-time
Audit andSupervisory
Committee
Member4 outside directors

Audit and Supervisory
Committee Members* Male and female members are indicated in blue and orange respectively.

Ratio of female Directors
29%

Ratio of Outside Directors
57%

FemaleOutsideAppointment of Outside Directors

Appointment of a female Director

Transformation into holding company

2

4

Expected structure following approval at theordinary general meeting of shareholders to be heldon June 25, 202446

https://www.swcc.co.jp
The forward-looking statements in this presentation are based on information available at the time of publication and involve
potential risks and uncertainties.
Therefore, please be aware that a variety of factors could cause the actual results to differ materially from those projected in thestatements.
Such factors that may affect actual results include economic conditions, demand trends, and fluctuations in raw material prices andexchange rates.
Factors that may affect business performance include, but are not limited to, the above.