Creating for the Future

SWCC Group

Supplementary Material for the Second Quarter of the Fiscal Year Ending March 2022
November 4, 2021

SWCC SHOWA HOLDINGS CO., LTD.（TSE1: 5805）

FY2021 Q2 Overview of Financial Results
Results: Sales and profits increased YoY, despite a slowdown in demand in some areas
・Energy and Infrastructure Business：Despite the impact of soaring material prices, sales for construction-related products
remained steady due in part to shipments for large-scale projects amid a decline in demand. Demand for electric power
infrastructure remained robust.
・Communication and Industrial Devices Business：Despite 5G demand and other factors, communication infrastructuresrelated products were affected by soaring material prices. Demand for consumer electronics and office equipment recovered,particularly overseas, despite the ongoing disruption in the supply chain for industrial devices.
・Electronic Equipment and Components Business：Demand for high-functional products for automobiles and electronic
components recovered YoY, despite the impact of reduced automobile production. There was also the impact of the rising copper
prices.

Q2 Progress Rate (Net Sales/Operating Income)

53%
Sales plan¥180 billion*Vs. initial forecasts of FY2021 total

58%

62%

47%

Operatingincome plan

Ordinary
income planNet
income plan

¥8.6 billion¥8.3 billion¥6.8 billion

2

FY2021 Revision to Full-year Business Forecasts• We have revised our full-year business forecasts in light of the current performance.

FY2021
Forecasts
announced
on May 13

FY2021
Revisedforecasts（Unit: 100 million yen）

FY2020
ActualComposition

Net sales

1,617－

1,800－

1,950

Operatingincome

76

4.7％

86

4.8％

Ordinary
income78

4.8％

8350yen

3.1％

68yen

Net income
attributable toowners of parent％

ChangePercentagechange－+150+8.3%

95

4.9％

＋9＋10.5%

4.6％

95

4.9％

＋12+14.5％

3.8％

76yen

3.9％

＋8yen

＋11.8％

Composition％

Composition％

3

Domestic Copper Prices/Copper Wire Shipments• The average price of domestic copper prices remained high, partly due to the economic recovery in China.
• Domestic copper wire shipments are recovering mainly in the electrical machinery and automobile sectors,
although the recovery in construction and electrical power sales is weak (+3.6％ YoY).
（Thousand yen/ton）
1,400.0(Monthly Average) Domestic Copper Prices

Copper Cable Shipment Volume (tons)

200,000

1,200.0

150,000

1,000.0
800.0

150 thousandton(Forecast)

147 thousand
ton

100,000

600.0
400.0

50,000

Average annual increase of 61.9％ YoY

200.0

00.0
Apr.

May.

Jun.

Jul.

Previous year

Aug.

Sep.

Oct.

Current year

Source: Japan Electric Wire Manufacturers Association

Nov.

Dec.

Jan.

Feb.

Mar.

2019
Apr-Jun

Jul-Sep

Communication
Automobile

Oct-Dec

2020
Jan-MarApr-Jun

Jul-Sep

Oct-Dec

Electric power
Electrical construction and sales

2021
Jan-MarApr-JunElectrical machinery
Other domestic demand

Source: Japan Electric Wire Manufacturers Association4Jul-Sep(Plan)

Q2 Consolidated Statements of Income• Performance was in line with forecasts, with sales and profits up YoY.

（Unit: 100 million yen）

FY2019Q2 Actual

FY2020Q2 Actual

FY2021Q2 Actual

Composition％

YoY％

Net sales

860722947－31.2%

Gross profit

11793122

12.9％

30.7%

Operatingincome

43

24

50

5.3％

107.6%

Ordinary income

40

26

51

5.4％

95.5%

2918

32

3.3％

73.9%

Net income
attributable toowners of parent5Quarterly Performance Trends（Unit: 100 million yen）

Changes in quarterly net sales

600
400

452430

496
430

338

384

FY2019434 430

FY2020418

Changes in cumulative
net sales
1,950

FY2021

465

2,000

1,711

1,500

1,617

Forecast

1,000

200

500
001Q

（Unit: 100 million yen）

30
20
102Q

3Q

Changes in quarterly operating income
2626

2425

FY202027

Year-end cumulative
Changes in cumulative
operating income 95

FY2021

25

100
80

1817

FY20194Q

1886

Forecast

76

60
40

6

20
001Q

2Q

3Q

4Q

Year-end cumulative

6Consolidated Balance Sheet(Comparison with the previous fiscal year-end)
・ Equity ratio is 36.1%（Unit: 100 million yen）

March 31,2021

September
30, 2021

ChangeMarch 31,2021

September
30, 2021

ChangeCash and deposits

4236△6Notes & accounts payable

224

269+46

Notes and accounts
receivable-trade andcontract assets

439

497+58

Short-term borrowings

247

253+6215
57
753

251
63
846

+35＋6+94

Others

159
629
121

170
692
136

+11+63+15

Property, plant andequipment

397

410

+136362△1Intangible assets

1413△1Total long-term liabilities

184

198+15131

134+3Total liabilities

813

890+77542

557+1524257
1067748224257
132
81513

0+1+26+5+31

1,295

1,403+108

Inventories
OthersTotal current assets

Investments and otherassets
Total fixed assets

Total current liabilities
Long-term debt and bonds
OthersCapital stock
Capital surplus
Retained earnings
OthersTotal net assets

Total assets

1,295

1,403+108

Total liabilities and net assets

7

Results by Segment (3-year changes)• The impact of COVID-19 is limited.
• Operating income margin was around 5% in all three segments.
FY2019Q2 Actual（Unit: 100 million yen）
Net sales

FY2020Q2 Actual

OperatingincomeNet sales(Profit margin/%)

Energy and Infrastructure

435

31

OperatingincomeNet sales(Profit margin/%)388(7.1%)

11FY2021
Q2 Actual

18(Profit margin/%)493(4.6%)

12730(6.2%)

Communication andIndustrial Devices

153

Electronic Equipment andComponents

248

Others(New Business)

24

△223

△319

△3(14)

(△１)

(16)

(△0)

(14)

(△0)

Total

860

43722

24947

50(7.5%)2139(6.5%)

183(0.8%)(5.0%)

8

Operatingincome1(6.3%)

295(0.6%)(3.3%)

914(4.7%)(5.3%)

8

Energy and Infrastructure Business
Q2 Results（Unit: 100million yen）

Construction

Electric power infrastructure

Seismic isolation/Others

Operating income

500493

31450

30435

400

Results
32◆ Construction
General-purpose electric cables

28◆ Seismic isolation/Others
Seismic isolation devices, Antiseismic / Anti-shock

388
24350
300

66%
62%

250

271

1820326

63%

16245

200

12150
10029%

126

27%

103

26%

128

8

Demand for electric power
enhancement, renewal of aging
infrastructure, and renewable energy
interconnection remained strong.

TopicsPress releaseon September 21

Notice of Business Alliance with KYOWA EXEOCORPORATION* for Electric Power Construction
Business Related to Offshore Wind Power Generation*Currently EXEO Group, Inc.

Press releaseon October 1

SWCC Group's online store offering electric wires andelectric materials "Kaeru-ya" opened on October 14500◆ Electric power infrastructure
Power cables, Construction, Powerdevice component (SICONEX®)

Despite a decline in constructionrelated demand, shipments of generalpurpose electric cables for large
projects increased.

9%37

FY2019 Q2

10%39

FY2020 Q28%

400FY2021 Q2*The new accounting standard has been applied only to the results for the second quarter of FY2021.

9Communication and Industrial Devices Business
Q2 Results（Unit: 100million yen）

Communication cable
Precision devices

160

Wire harness
Operating income

Results
12153

11140

139
10127120
82

10048%
52%

8◆ Communication cable(Communicationinfrastructure)
Metal cables, optical cables

6◆ Wire harness(Home and industrialequipment, etc.)

9854%

676680◆ Communication cable(Construction)
Metal cables, optical cables,
Lan cables◆ Precision devices(Copy machine, etc.)

6030%

464031%
32%

2516%

2121%

FY2020 Q2

Despite the disruptions in supply chain,demand for home appliances and officeequipment recovered, especially overseas.

Topics2Press releaseon August 31

Launch of a new brand "FLANTEC™" for highspeed LAN cables

0Press releaseon September 27

Notice of Transfer of Metal Communication
Cable Manufacturing Business among
Consolidated Subsidiaries

290
FY2019 Q24402016%44

Despite favorable market factors such as thestrengthening of communication
infrastructures, the business was affected bysoaring material prices.

FY2021 Q2*The new accounting standard has been applied only to the results for the second quarter of FY2021.

10

Electronic Equipment and Components Business
Q2 Results（Unit: 100million yen）

High-performance products oxygen free copper
Other high-performance products
General-purpose products
295
Operating income

300

141253%

9539%

10%

2447%

10010%
52%

129

158

8610%

43%

2918◆ Other high-performance products (Automobile,electrical equipment, etc.)
Copper Alloy, High performance magnet wire80

◆ General-purpose products(Electrical machinery applications etc.)
General-purpose magnet wires21Topics
Published in the Chemical
Daily on September 290
FY2020 Q2

Demand for general-purpose
magnet wires for heavy
electronics was boosted bydomestic demand due to areview of the supply chain.

1090FY2019 Q2

Demand for high-performance
products for automobiles andelectronic components
recovered.

6437%

2

◆ High-performance products oxygen free copper(Automobile, electrical equipment, etc.)
Oxygen free copper MiDIP®

10183

8150

50

14248

250

200

Results

Further Strengthening of MiDIP® and Other
High-functional Products and Prospects forDownstream Development

FY2021 Q2*The new accounting standard has been applied only to the results for the second quarter of FY2021.

11Forward-looking statements in this document are based on information available at thetime of publication and contain potential risks and uncertainties.
Therefore, actual results may differ materially from those projected in the forward-looking
statements as a result of various factors.

Creating for the Future

Factors that could influence actual results include economic conditions, demand trends,
raw material prices, and exchange rate fluctuations, as well as other items not limited tothe above.

Contact
SWCC SHOWA HOLDINGS CO., LTD.
STRATEGY SECTION,BUSINESS STRATEGY PLANNING DEPT.
TEL:044-223-0520
E-mail：kouho@hd.swcc.co.jp

SWCC SHOWA HOLDINGS CO., LTD. (TSE1: 5805)