Small Meeting for Institutional Investors / Q&A Session
Date: Wednesday, 2 June, 2021

14:30～15:30/16:00～17:00

Location: Nihonbashi Kabutocho, Chuo-ku, Tokyo

Overall business
Q1.

While copper prices continue to rise, what your assumptions for quotations at the timethe earnings forecasts were formulated and how would you consider the impact on sales
and profits?

AThe copper price is expected to be 1 million yen per ton. This is a factor behind the roughly 30
billion yen rise in company-wide sales. By segment, the Energy and Infrastructure Operations
accounted for approximately 15 billion yen, while the Electrical Equipment and Components
Operations accounted for approximately 15 billion yen. As we strive to manage the business sothat copper prices do not affect profits, this rise in copper price will not be a negative factor forour profit plans.

Q2.

What are the factors behind changes in profits for each of the three Operations in theFY2021 plan?

AEnergy and Infrastructure Operations: Sales are expected to increase due to higher copper prices,
but profits are expected to be flat as demand in the construction market is flat. In the electricity
market, the company also plans to maintain sales and profits at the same level as last year due
to construction capacity and the impact of construction stops ahead of the Tokyo Olympics andParalympics.
Communications and Industrial devices Operations: Wiring harnesses for consumer electronics
will growth driver. Demand for household appliances is active due to demand for consumption
from staying at home has been growing. For precision devices, demand for home printers isgrowing due to the impact of teleworking, and this also contributed to the increase in profits.
Electrical Equipment and Components Operations: The full operation continued since 2H in
FY2020 due to the maintenance carried out during low operation in the 1H. In addition, theproducts for electronic components at full capacity.

Q3.

What is the depreciation expense plan for FY2021?

A

It is planned to increase by about 500 million yen over the previous year.

Q4.

What percentage can the target of VISION2026 operating income of 15 billion yen beachieved by extension the current measures?

AWe cannot say the percentage clearly, but we think that the target will not be achieved simply
by extending the current measures. It is necessary to consider growth investments and portfolio
conversions in the next medium-term management plan.

Q5.

What are your thoughts on accelerating R&D?

AWe do not think that R & D should be expanded anyway. Our current focus is on the mobility
and medical field and the smart city field, which includes next-generation electricity. Someachievements have been made, such as the development of high-speed communications forautomobiles and components for smart cities.

Q6.

Are measures taken to strengthen manufacturing and logistics systems and to countercyber-attacks?

AThere is no plan to make a large investment in manufacturing and logistics systems, but webelieves that DX is necessary. We are promoting systematization that can integrate from order
receipt procurement, manufacturing, logistics systems, and delivery. To against cyber-attacks,anti-viral measures, ID management, and penetration tests are conducted.

Q7.

What do you think of employee engagement?

AWe conduct employee satisfaction surveys every year. Since the last fiscal year, the personnel
system has been changed to a system based on evaluation and wages according to roles andresponsibilities rather than a seniority-based systems. However, since there are a variety ofopinions, we would like to hear them firmly. We believe that improving engagement isnecessary to change our corporate culture.

Structural Reforms
Q8.

What are the effects of structural reforms in the profit plan for FY2021? Are unexpectedfactors of deterioration factored into the effects?

AFactors causing unexpected deterioration are not factored in. We expect that the effect ofongoing structural reforms will be shown in earnest from the next fiscal year.

Energy and Infrastructure Operations
Q9.

You said that you would focus on solutions around substations for the renewable energy
and offshore wind markets. How much do you expect this business to grow?

A

As for offshore wind, substations will be required at each point to raise and bundle offshore
generated electricity to land with submarine cables and connect them to grid interconnection.
Our electric power equipment is widely used to connect to that substation. Not only sellingelectric power equipment, but we aim to supply solution business that includes power cable andelectric power construction. We are afraid that we do not disclosed the specific sales figures.

Q10. I heard that SICONEX® was operating at full capacity at the time of the Q3 financial
results, but what about the current situation?
A

Currently, SICONEX® continues to operate at full capacity. We have decided to invest inincreasing production, as we mentioned in the press release on February 25, and the completionof construction is scheduled for April 2023. However, as manufacturing capacity will beimproved continually, we think that the effect of investment will be shown from the end of thenext fiscal year. Even if the supply of SICONEX® increases, it will not be possible to maximize
added value without the capacity to install it, so as stated in the press release on May 13, wewill also increase the number of construction personnel while utilizing the educational programof SICOPLUS™. In cooperation with partner companies, we aims to achieve sales targets
exceeding 30 billion yen.

Electrical equipment and components Operations
Q11. What are the high-performance products in the Electrical Equipment and Components
segment that are expected to grow particularly?
AWe want to expand our MiDIP®, but there is an issue with the capacity for facilities. In the next
medium-term management plan, we will clarify how much it will invest in response to thegrowth of the EV market and what markets it will focus on.

Q12. Please tell us about specific measures to improve profitability in the electrical equipment
and components Operations.
ATo give an example, we are removing old facility for general-purpose products with low-profit
margins and replacing them with the ones for manufacturing rolling wire for automobiles.
Through these measures, we will transform its business portfolio.

Q13. What are the current profitability and competitive advantages of automotive products?
AOne of our strategic products MiDIP®, is overwhelmingly high-grade compared to otherproducts. We are the only company that has the DIP Forming System facility to produce
MiDIP® in Japan. So only we can realize this grade at present. This position is MiDIP®'sadvantage, and it is highly profitable.

Q14. At the time of the Q3 financial results, I heard that MiDIP® was operating at full capacity.
What is the current situation?
ASince there is only one MiDIP® manufacturing facility in Japan, it is now fully operational. In
the process of manufacturing wire materials with low oxide concentrations, only parts that meetcertain conditions can be sold as high-grade MiDIP®. So we are considering renovations of thefacility to increase the production of high-grade MiDIP®.