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Supplementary Material for the Third Quarter of the Fiscal Year Ending March 2024

February 2, 2024

TSE PRIME: 5805

1. FY2023 Q3 Overview of Financial Results

2

FY2023 Q3 Overview of Financial Results
BusinessEnvironment






Supported by the normalization of economic activity, acceleration of wage increases, and accommodative
fiscal and monetary policies.
Raw material and energy prices remained high against the backdrop of unstable international situations andthe yen's depreciation.
In the automobile-related market, recovery production is in full swing.
In the electric wire and cable industry, overall demand for electric wires increased YoY.
The average domestic quotation price for copper increased slightly from the same quarter of the previousyear.

Net sales

The business plan for the current fiscal year is slightly weighted more towards the second half of the year than usual. Q3 results
showed an YoY growth in sales.
[Status of Major Business Fields]
Energy Infrastructure: Construction and electric power construction work projects were concentrated more than anticipated in Q3.
Automobiles: Demand for xEV products recovered in some areas, but demand for general-purpose products for industrial
machinery was sluggish.
Industrial Devices: Demand for offices recovered, but domestic consumer electronics demand in wire harnesses products wassluggish.

OperatingincomeOperating income increased YoY due to a concentration of construction and electric power construction work project beyond
expectations in Q3.
In response, the Company upwardly revised its full-year plan.

3

FY2023 Q3 Consolidated Statements of Income
We have made upward revisions to our full-year profit plan in anticipation of strong construction and power-related earnings.
Both operating income and ordinary income are expected to be record highs.
(Unit: 100 million yen)

Net sales

FY2022Q3 Actual

1,580

FY2023Q3 Actual

1,585

YoY%

Progress rate%

5

Operating income

7193

23

Operating income
margin (%)

4.5%

5.9%

1.4％

FY2023Full-year plan
(before revision)

2,120

74.8%
77.9%

(2,150)Recordprofitsexpected6992

2377.8%Net income
attributable toowners of parent6463▲176.2%(115)

5. 7%ー

Ordinary income

120(5.3%)

Recordprofits
expected118(115)

83(75)

4

Key Points of the Financial Results for FY2023 Q3
Q3 YoY Change

Q3 Progress rate

Despite sluggish demand for industrial machinery and home
appliances, sales and operating income increased due tofavorable conditions in the construction and electric powerrelated businesses.

Net sales(Unit: 100 million yen)

Operating income

FY2022 Q3

the historical averages.

(Unit: 100 million yen)

Full-yearPlan*

FY19-22Avg.
progressrate

Q3
Progressrate

Net sales

2,120

74.1%

74.8%

Operatingincome

120

73.8%

77.9%

Up0. 3%

1,580

Both sales and operating income well above

100
9080
7060
50
1,585
40
30
20
100
FY2023 Q3

Up32%

9371

FY2022 Q3

FY2023 Q3*Upwardly revised figures.

5

FY2023 Q3 Change Factors (YoY)
1,700億円

Change factors for net sales+¥4.6 billion -¥4.7 billion

1,650億円
1,600億円

Effect of changes incopper prices

1,550億円
1,500億円-¥2.5 billion+¥3.1 billion

FY2022Q3¥158.0 billion[Change factors]

Energy andInfrastructure
Business

ElectronicEquipment
andComponents
Business

Energy and Infrastructure Business: ¥1.8 billion
Electrical Equipment and Components Business: ¥1.2 billion
Communication and Industrial Devices Business: ¥0.1 billion

1,450億円

Communicationand Industrial
Devices Business

FY2023Q3+¥0.01 billion
Others¥158.5 billion

Foreign exchange
impact:+¥0.2 billion+¥0.2 billion+¥2.6 billion

90億円
80億円
70億円

-¥0.3 billion
Absence of the60億円
50億円

FY2023Q3Structural reforms

FY2022
Q3

special¥7.1 billion COVID-19demand-¥0.3 billion
Communication
Business
Restructuringcosts

Despite sluggish demand forindustrial machinery and theabsence of the COVID-19 special
demand, sales increased YoY
due to the concentration of theEnergy and Infrastructure
Business projects in Q3.

2. Operating income

Change factors for operating income
100億円

1. Net sales-¥0.8 billion+¥0.8 billion

・Integration of
production and sales
operations to SFCC
・Restructuring of
telecommunications

Profitability
improvement effect
Increase in raw
Increase in selling (Product portfolio shift)material and energy prices and cost
costs
reduction¥9.3 billion

Increases in raw materials andenergy costs were offset by pricepass-through and cost reductions.
Despite a one-time loss stemmingfrom the restructuring of thetelecommunications business,
operating income increased YoY
due to the impact of improved
profitability and theconcentration of highly
profitable contracts in Energy
and Infrastructure Business in
Q3.

6

FY2023 Q3 Segment Results
Despite sluggish demand for industrial machinery and domestic home
appliances, strong construction and electric power-related sales drove
overall performance. Demand recovered in some xEV related products.
Electrical Equipment andComponents Business

Energy and Infrastructure Business
Construction

Power infrastructure

Seismic isolation /Operatingincome

Others(Unit: 100 million yen)
1,000900

895

83160050076 8052(6.2) 608
584

0300
50200
40300
10020523730100

4250200

FY2022 Q3460300
20424

FY2023 Q3200
39Communication cables

Wire harnesses

Precision devices

Operating income15(3.4)220

FY2022 Q3200

210
5714(3.3)100157
FY2023 Q3100

20259

114

86235

10125

Other2%Other High-performance
products
4%High performance
product oxygenfree copper
13%Outer circle: Segment
Inner circle:
Sub-segment

Precision devices
3%

10 10(4.1)(3.9)

Segment sales ratio

General-purpose
products
10%(Unit: 100 million yen)

400
60

400
200

Other high-performance
products
Operating income(Unit: 100 million yen)

(8.5)500
70

800
700

High performance productoxygen-free copper
General-purpose products

Communication and Industrial
Devices Business

FY2023 Q3 Results

665945

FY2022 Q3

FY2023 Q3Construction
38%

Wire harnesses Seismic isolation /4%
Others3%
Communication
cablesPower Infrastructure
8%
15%

07

Energy and Infrastructure
Business

Progress of Q3 Performance and Initiatives to Achieve Full-Year Plan
Initiatives to Achieve the Full-Year Plan

Progress of Q3 Performance against Full-year Plan
Positive factors●Improve profitability by integrating production and sales of joint venture (coated wire business)●Concentration of highly profitable projects in Q3●Revision of selling prices and cost reduction initiatives◆Promote improved profitability through digital transformation at joint venture(coated wire business)

Outlook for Q4●As expected at the beginning of the period, we captured the large number of power construction
projects in the 2H and the strong demand for construction. Aim for record-high profits.

¥120.5 billion
Net sales
Progressrate

74. 2%

XXXX%%X,XXX
XXXX,XXX

XXXX%%

XXXX%%¥89.5 billion

266

Q3 cumulative

270359◆SICONEX® production expansion
plan

Double production capacity byimproving productivity and reinforcing
personnel

Full-year plan

Progressrate

78. 3%XX
XX%%

Full-year plan

Q1
Q2
Q3
¥9.7billion
0 100200300400500600700800900
1,000
1,100
1,200
1,300
OperatingincomeX,XXXXXXIntroduced a systemfor checking
shipping
information andinventory statusthrough companyowned mobilephones. This
enables review ofproduction plans
and inventory
plans in real time.

Facility capacity after
completion¥7.6 billion
Q3 cumulative

01221

43

Q1Q2Q3Capacity during
investment toincrease production

100

FY2023

Building expansion
completed

1.5x
FY2024FY2025

FY2026

8Electrical Equipment andComponents Business

Progress of Q3 Performance and Initiatives to Achieve Full-Year Plan
Initiatives to Achieve the Full-Year Plan

Progress of Q3 Performance against Full-year Plan

◆With the acceleration of xEV (electric vehicle) adoption, there is an increasing demand for heaterwires due to the growing need for thermal management. Anticipating future demand where thenumber of heated seats equipped per car will increase from two to four, we are preparing toaccommodate this change.

Positive factors●Demand recovered for some products for xEV.
●General-purpose products for heavy electrical machinery remained strong.
Negative factors●General-purpose products for industrial machinery were sluggish.
Outlook for Q4●Demand for high-performance products for xEV (heater wires, etc.) was firm, mainly in NorthAmerica.

Copper alloywire¥57.0 billion
Net sales
Progressrate
74. 4%

Full-year plan

Seat heater

Battery heaterFor xEV vehicles without heat sources, the heater-wire reduces battery use by 20%¥42.4 billion
Q3 cumulative

0Operating
incomeProgressrate
74. 2%

Handle heater

138

140

146

Q1100

Q2200

Q3
¥1.9 billion
300
400◆Introduce production innovation lines (low-cost + high environmental performance) in preparation
for a recovery in demand for high-performance wires in xEV market.

500

600

MIDevelop varnishes
compatible with high-speed
burning furnaces

PI

Maximize efficiency of productivity andquality by seeking optimal manufacturingconditions

Full-year plan

¥1.4 billion
Q35cumulative

0Q154Q210Q320Linearspeed: 3x

CO2 emissions:
Reduce by 57%

Energy efficiency:
More than double

Equipment
installation cost:
25% reduction

Doubleprofit margin
improvement

9Communication and Industrial
Devices Business

Progress of Q3 Performance and Initiatives to Achieve Full-Year Plan
Initiatives to Achieve the Full-Year Plan

Progress of Q3 Performance against Full-year Plan
Positive factors●Reorganization of domestic manufacturing bases for communication cables and sales at appropriate prices●Expansion of communication cables demand for construction●Full-scale operation of ADAS-related Communication cables business◆Communication cables business captures strong demand for FLANTEC®
Construction

Negative factors●Economic downturn in China and Vietnam and sluggish domestic consumer electronics demand
Outlook for Q4●Expand profits in the Communication cables business, where demand is expected to increase in Q4.
Other●Recording of structural reform expenses due to review of optical fiber manufacturing process.

¥30.5 billion
Net salesProgressrate
77. 1%

Full-year plan0Operatingincome
Progressrate
65. 0%

708085

Q1Q2100¥1.5 billion

Q3200

business environment. (See detailed slide on page 25.)300

¥1.0 billion

034

3

Q1

Q25Q3
10Automotive twisted paircables

・Established 2 joint ventures in China (operation started in January 2024)

Full-year planQ3 cumulative

6A Standard Compliance
TPCC ®
6A (10Giga Coil.)

Full-scale operation ofhigh-speed
communication cablebusiness to realize level
4 or higher autonomous
driving

ADAS-related◆Wire harnesses business shifted its business portfolio in line with changes in the¥23.5 billion
Q3 cumulative

Demand forreplacements expanded
in response to theincrease incommunication capacity
due to the promotion ofAI, IoT use.

400
Strengthen thecompetitiveness

Cost
reduction andquality
improvement

Diversification
deployment

Entry into ADAS
related components
market◆Expand sales by capturing recovering demand in the 2H of the Precision
devices business・Demand is expected to recover from FY2024, mainly for offices.

15202510FY2023 Q3 Consolidated Results B/S(Comparison with the end of the previous year)(Unit: 100 million yen)

Total assets
Trade receivables
Inventories
Non-current assets
Total liabilities
Trade payables
Interest-bearing debt
Total net assets
EquityEquity ratio (%)
DE ratio (%)

End-FY2022

1,567527282646

FY2023 Q3

1,570
535
281
624

Change48▲1▲22883

847▲35８▲67684

723

249
412

257
345

675
43.1

712
45.3

3937
2.2

61.0

48.4

▲12.6

[Inventories]
Trade receivables were reduced more than theincrease in sales due to the implementation ofsecuritization of receivables.
[Fixed assets]
Investment securities decreased due to sales inaccordance with the policy holding policy.
[Interest-bearing debt]
Interest-bearing debt decreased due to sales ofinvestment securities.
[Equity ratio]
Increased by 2.2 ppt. from the end of the previous
fiscal year due to an increase in net assets.
[DE ratio]
Interest-bearing debt decreased by 12.6 ppt. from theend of the previous fiscal year due to a decrease ininterest-bearing debt and an increase in shareholders'equity.

<Recognition of current issues and future measures>
Various measures have led to an improvement in thebalance sheet. We will continue to enhance thisimprovement by ensuring a proper level of inventory
and shortening the accounts receivable collection
period.

11

2. FY2023 Full Year Forecasts

12

FY2023 Full-year Forecasts (After Upward Revision)
堅調な建設および電力関連需要の取り込みと、各種収益改善施策により増収・増益を計画。株主還元は増配予定。

Ordinary Income

Net sales

2300(100millionyen)
2100

Up
1. 4%

2,091

(100 million yen)

2,120
120

110

1900

Up 14.
6%

120

Recordprofits
expected

Ordinary Income

11. 8 billion yen

Recordprofits
expected(YoY: 13. 5% increase)

Net income attributableto owners of parent

105

8. 5 billion yen(YoY: 11. 8% decrease)100

Dividend/Payout ratio

1700
9085 yen/30. 2%(YoY: 25 yen increase)

80

1500
2022年度実績 2023年度計画

2022年度実績 2023年度計画

Interim: 35 yen, Year-end: 50 yen
Total: 85 yen

13

FY2023
Consolidated Results CF Forecast and Capital Investment Plan
<Consolidated cash flow>
Operating
CF(Unit: 100250
million yen)Free CFInvestment
CF

185200＜＞内対前年増減高Financial
CF<Capital Investment Plan>△ 5042＜▲5＞＜+143＞

67%

14%

1000R&D

14515050

Reduction of environmentalimpact, etc.

Balance of cashand deposits＜▲119＞＜+139＞ ▲ 1▲ 35 ▲ 404065

Rationalization andICT enhancement2%

2022年度27%

FY2023
Capital Investment Plan

6. 7 billion yen
Reorganization and strengthening ofproduction bases, facility renewal

＜+25＞
51%

△ 100
△ 150

Production Capacity Expansion▲ 120

2023年度E

Operating CF in FY2023 will increase due to reduction of working
capitalInvestment CF will increase due to increased capital investment

Breakdown by Segment
Energy and Infrastructure Business Section

2. 5 billion yen

Electrical Equipment and Components Business Section

1. 8 billion yen

Communication and Industrial Devices Business Section

1. 0 billion yen

Other

1. 4 billion yen

14Current status analysis: Market valuation transition and decomposition of PBR factors
PBR has improved due to improved profitability and dialogue with investors. Going forward, the company will
focus on communicating further growth stories to maintain a stable P/B ratio of 1x or more.

PBR factor decomposition

Market capitalization, equity capital, PBR(Millions ofyen)(times)80,0001.19
1.02

70,000
0.94

0.96
0.84

0.86

60,00050,0000.76

0.76

PER10. 17x

1.20

1.00

0.60

30,000Financial leverage
Stock price
2,859 yenROE
11. 7%

0.40

20,0000.20

10,0000.00
FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Q3

時価総額

自己資本

PBR 3Q

Cost of shareholders'equity

PBR
1. 19x0.80

0.60

40,0000Growth rate

1.40

90,000BPS
2,411 yen

Net profit margin onsales
Total asset turnover* Share prices are closing prices on December 29, 2023.
* All indicators are based on the balance at the end of December. However, profit ratios arethe figures announced for the full year.

15

"Financial Strategy" Overall financial and capital strategy
Measures

Index

Strengthen earning power
and CF creative capacity
through ROIC management

Ouraspirations
PBR1 morethan 1x

Value Creation

Evolution into a highly
profitable company
ROIC 10% or more

Streamlining the balance
sheet and building an
optimal capital structure

ROIC spread 1.5x more
ROE 10% or more
D/E 50% or lessStability ofmanagement base

Dividend 120 yen or more
Cash Allocation

Enhancement ofshareholder returns

16Non-Financial Strategy: Promotion of Human Capital Strategies that Support Sustainable Growth◪ Diversity Management

Evaluation by external organizations● From a "Women's Participation Promotion Project" to a "Diversity

Promotion Project”
・ The project, which was launched in April 2021, has added male members fromApril 2023 to promote efforts to raise awareness of unconscious bias.

ｂ● Extend the retirement age and introduce an optional retirement system

・ Creation of an environment in which experienced and seasoned
employees can work with confidence.

◪ Increase engagement● Expand systems to match the needs of the Company and employees
・ In order to realize the placement of the right person in the right job, the job challenge system andinternal recruitment system will be expanded and enhanced.

● Establish a compensation system that encourages challenges
・ Transition to a compensation system that more appropriately reflects the efforts and achievements ofemployees who take on challenges.

● Creating a comfortable working environment
・ Promotion of teleworking and flexible work hours. Introduced health promotion app and thanks points.

10,000Operating income per employee
and number of employees

9,000
8,000

198

7,000
6,000

132 148

5,000 4,7574,000299

235 249
176

350
300
250200

全従業員（人）一人当たり営業利益(万円)

4,494 4,352 4,319 4,280

150

4,201 4,012

100
50

3,000
2,000

Furthergrowthphase

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023E

0*Number of people in FY2023 estimated as at end-December 2023.

17

Non-Financial Strategy: Contribution to a Decarbonized Society
We aim to achieve carbon neutrality by 2050 by implementing various measures, including the introductionof renewable energy at domestic manufacturing sites, promotion of procurement of non-fossil energy,
introduction of high-efficiency and energy-saving equipment using new technologies, and reduction ofmaterial-derived emissions through cooperation with suppliers.
CO2 emissions

Renewable energy
introduction ratio(%)

CO2 emissions
Renewable energy introduction ratio(t-CO2 /year)

80,000<Road Map to Carbon Neutrality by FY2050>

FY2022 Results

100%*Compared to FY2013

90%

70,00037% CO₂reduction*

60,00045% CO₂reduction*

50% CO₂● Increase the installation rate of renewable energy atproduction sites● Introduce energy-efficient manufacturing equipment● Develop and commercialize new technologies such as
superconductivity applications● Increase the number of registered environmentallyfriendly products● Consider the introduction of internal carbon pricing

50,00040,000

Domestic Scope 1 & 2

30,00020,000

80%
70%
60%
50%
40%
30%
20%
10%

FY2025

FY2030FY2050

2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050

FY2022

renewableenergyintroduction

renewableenergyintroduction

renewableenergyintroduction

0FY201340%

30%

6%10,000<Details of Initiatives>

reduction*

Endorsement of TCFD
Recommendations

0%

Achieve carbon neutrality

Material-derived
emissions arehighest.
In cooperation with
our suppliers, wewill strengthen
reductions in thefuture.

18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 the statements.
Such factors that may affect actual results include economic conditions, demand trends, and fluctuations in raw material prices and exchange rates.
Factors that may affect business performance include, but are not limited to, the following.