Creating for the Future

SWCC Group
Supplementary Material for the Third Quarter of the Fiscal Year Ending March 2022
February 3, 2022

昭和電線ホールディングス（株） 東証一部（5805）
SWCC SHOWA HOLDINGS CO., LTD.（TSE1: 5805）

FY2021 Q3

Overview of Financial Results

Results： Sales and profits increased YoY, despite the impact of soaring raw material prices
・ Energy and Infrastructure Business： Despite a decrease in demand for construction-related products, shipments forlarge-scale projects were firm, but the impact of soaring prices of raw materials such as petrochemical products becameapparent. Demand for electric power infrastructure remained robust.
・ Communication and Industrial Devices Business： Demand for industrial devices recovered YoY. Although there was a
5G demand for telecommunication infrastructure, there was a decline in demand for construction-related products and theimpact of soaring raw material prices.
・ Electronic Equipment and Components Business： Demand for high-functional products for automobiles and electroniccomponents recovered YoY, despite the impact of reduced automobile production. There was also the impact of the risingcopper prices.

Q3 Progress Rate (Net Sales/Operating Income/Ordinary Income/Net Income)76%
Sales plan
¥195 billion

87%

87%

69%

Operating
Income plan

Ordinary
Income planNet
Income plan

¥9.5 billion¥9.5 billion¥7.6 billion

2

Q3 Consolidated Statements of Income• Performance was in line with forecasts despite the impact of soaring raw material prices and logistics
costs, with sales and profits up YoY（Unit: 100 million yen）

FY2019Q3 Actual

FY2020Q3 Actual

FY2021Q3 Actual

Composition％

YoY％

Net sales

1,293

1,152

1,472－

27.8%

Gross profit

179155

191

13.0％

23.9%

Operatingincome685182

5.6％

62.2%

Ordinaryincome

6353

83

5.6％

57.3%

Net income
attributable toowners of parent

4635

52

3.5％

51.1%

3

Quarterly Performance Trends（Unit: 100 million yen）

Changes in quarterly net sales

FY2019

600

400

452

430
338

434 430

384

418

Changes in cumulative net sales

FY2021525496430

FY20202,000465

1,950
Forecast
1,711

1,500

1,617

1,000
200
500
00Q1

（Unit: 100 million yen）

Q2

Q3

Q4

Changes in cumulative operating income

Changes in quarterly operating income

FY2019FY2020

FY2021

32302026262425100271817

Year-end cumulative

258095
Forecast
86766018401020600Q1Q2Q3Q4

Year-end cumulative4

Results by Segment (3-year changes)• Sales and income increased in Energy & Infrastructure and Electronic Equipment & Components Business• Sales increased and income decreased in Communication & Industrial Devices Business
FY2019Q3 Actual（Unit: 100 million yen）

Net sales

FY2020Q3 Actual

Operatingincome

Net sales(Profit margin / %)FY2021Q3 Actual

Operatingincome

Net sales(Profit margin / %)Operatingincome(Profit margin / %)Energy and Infrastructure
Business667

48(7.2%)61835(5.7%)782

54(6.9%)Communication andIndustrial Devices Business229

20(8.6%)197

15(7.7%)220

13(6.0%)Electronic Equipment andComponents Business

362

3(0.9%)

304

5(1.6%)

441

21(4.7%)

Others(New Business)

36(22)△4(△１)

33(23)△4(△0)

29(20)△6(△0)

1,293

68(5.2%)

1,152

51(4.4%)1,472

82(5.6%)

Total5Energy and Infrastructure Business
Q3 Results
Construction
Seismic isolation/Others

Electric power infrastructure
Operating income（Unit: 100800
million yen）

6674860050◆Seismic isolation/Others
Seismic isolation devices, Antiseismic / Anti-shock

Despite a decline in construction-related
demand, shipments of general-purpose
electric cables for large projects increased.
But the impact of soaring prices of
petrochemical products and other raw
materials became apparent.

40◆Electric power infrastructure
Power cables, Construction, Powerdevice component (SICONEX®)

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

618

65%

500

3563%

510
419

400

3064%

Topics397300

2020029%

191

27%
26%

1009%

57

FY2019 Q39%Results◆Construction
General-purpose electric cables

54700060782

16358

FY2020 Q38%

20864100

FY2021 Q3

Press release on
December 6, 2021

Completion of the world's first demonstration test of a Triaxial superconducting cable system in an actual system of a
private plant

Press release on
December 24, 2021

Notice of Integration of Manufacturing Business and Changeof Investment Ratio in Joint Sales Company with Furukawa
Electric Co., Ltd.

Press release on
January 31, 2022

Incorporating AVR™ Technology into Workforce TrainingPrograms*The new accounting standard has been applied only to the results for the third quarter of FY2021

6Communication and Industrial Devices Business
Q3 Results
Communication cable
Precision devices

Wire harness
Operating income（Unit: 100 million yen）

240

22229
220

220

2020

197

200

18180

160

16

1554%

49%

124

140

52%

107
13102

10

10030%

60

68

33%
33%

73

64

16%

37

15%

30

18%

400
FY2020 Q3◆Communication cable(Communication infrastructure)
Metal cables, optical cables◆Wire harness(Home and industrial equipment,etc.)◆Precision devices(Copy machine, etc.)

Despite favorable factors such as theincrease of communication infrastructures,construction-related business was affectedby declining demand and soaring raw
material prices.

Demand recovered compared to the samequarter of the previous year.

Topics6Press release on
December 20, 2021

New Wire Harness Plant Starts Business in Jiaxing

Press release on
January 21, 2022

Fire-resistant cables for small power circuits
manufactured by Fuji Electric Wire Co., Ltd.
“EM-JSH®”.
Certified as the industry's fastest product compliant
with the Fire and Disaster Management Agency'sNotification.

20FY2019 Q3◆Communication cable(Construction)
Metal cables, optical cables,LAN cables

844020141212080Results

FY2021 Q3*The new accounting standard has been applied only to the results for the third quarter of FY20217Electronic Equipment and Components Business
Q3 Results
High-performance products oxygen free copper
Other high-performance products
General-purpose products
Operating income
44121(Unit: 100 million yen)

450

20400
362

1852%

350
300

16304
41%

149
227

250
8%

50

150

289%

38

10Results◆High-performance products oxygen freecopper (Automobile, electrical equipment, etc.)
Oxygen free copper MiDIP®

◆Other high-performance products(Automobile, electrical equipment, etc.)
Copper Alloy, High performance magnet wire
◆General-purpose products(Electrical machinery applications etc.)
General-purpose magnet wires

8150

100

141249%

200

2210%

31
551%

185
341%

123

176

420

FY2020 Q3

Demand for general-purpose
magnet wires for heavy
electronics increased bydomestic demand growth
due to a review of the supplychain.

640%

0
FY2019 Q3Demand for highperformance products forautomobiles and electronic
components recovered.

TopicsPublished in the Sangyo press on
November 8, 2021

High-performance products oxygen freecopper “MiDIP®”
Doubling production capacity in FY2026

FY2021 Q3*The new accounting standard has been applied only to the results for the third quarter of FY2021

8

Notice of Revision to Year-end Dividend Forecast for FY2021(Increase in Dividend)
To achieve the numerical targets (KPIs) in the medium-term management plan ahead of schedule, we have decided to revise

the year-end dividend forecast to 50 yen per share, an increase of 10 yen, as a result of comprehensively taking into accountcurrent business performance and other factors.
This amount is equivalent to the target of the current medium-term management plan for FY2022.
We will continue to strive for stable and continuous dividends by enhancing profitability and improving our financial position.
Annual dividend per share
Dividend payout ratio

End-Q2Previous forecast

Year-endーRevised forecast

Total

40.00 yen

40.00 yen16%

50.00 yen

50.00 yen

20%

Current results

0.00 yenーーー(Reference) Results for dividend pershare for the previous fiscal year

0.00 yen

20.00 yen

20.00 yen

12%

9Consolidated Balance Sheet(Comparison with the previous fiscal year-end)
・Equity ratio was 35.8％（Unit: 100 million yen）

March 31,2021

December 31,2021

March 31,2021

ChangeCash and deposits

4249+7Notes and accounts
receivable-trade andcontract assets

439

550+112Inventories

215

252+37

Others57

63＋5753

914+161

Property, plant andequipment

397

416+19Intangible assets

1412△1

Investments and otherassets

131

138+6542

566+24

Total currents assets

Total fixed assets

Total assets

1,295

1,480+186

December 31,
2021

ChangeNotes & accounts payable

224

275+51

Short-term borrowings

247

305+58Others159

171+12

Total current liabilities

629

751+121121

132+116362△1

Total long-term liabilities

184

193+10Total liabilities

813

944+131

Capital stock

242

242

0

Capital surplus

5757+0Retained earnings

106

153+47

Others77

84+7

Total net assets

482

536

+54

1,295

1,480+186

Long-term debt & bonds

OthersTotal liabilities & net assets

10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)