Creating for the Future

SWCC Group
Supplementary Material for the Fiscal Year Ended March 2022
May 12,2022

SWCC SHOWA HOLDINGS CO., LTD.（TSE Prime : 5805）

Overview of Financial Results for FY2021
Results： Sales and profits increased YoY, despite the impact of soaring raw material prices
・Energy and Infrastructure Business：In construction-related business, the impact of soaring raw material prices was compensated for bystreamlining production and passing on selling prices. Domestic demand for electric power infrastructure projects continues to be strong. Inaddition, we processed the allowance for the power-supply construction projects for the Middle East countries.
・Communication and Industrial Devices Business：In industrial devices business, some production activities stagnated due to supply chain
disruptions. Demand for telecommunications cable for construction-related projects declined. Completed the transfer of manufacturing to overseas
plants and restructuring of domestic bases; some of these activities contributed to improved profitability.
・Electronic Equipment and Components Business：Demand for high-functional products for automobiles and electronic components increased
from the previous fiscal year, although the impact of automobile production cutbacks continued from the second half of the Q2. Rising copper
prices also contributed to higher sales and profits.

Progress Rate（Net Sales/Operating Income/Ordinary Income/Net Income） * Vs. the plan announced on Nov. 4(Unit: 100 million yen)

2,000

Sales plan
1,950

1,992

120
100

Operating Income plan
95

100120100

Ordinary Income plan
95

99120

80

80

6060

60

4040

40500

2020200000

1,000

Plan

Results

Plan

Results

Plan

Results

94

10080

1,500

Net Income plan

76

Plan

Results

We also achieved the profit targets in the Mid-term management plan “Change SWCC 2022 (Rolling plan 2019)”

2FY2021: 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
FY2019ActualFY2020
ActualFY2021
ActualNet sales

1,711

1,617

1,992

Gross profit

237218Operating
Income86

Ordinary
Income79(Unit: 100 million yen)

Net income
attributable toowners of parent

Dividend/
Payout ratio

Composition%

Increase/
Decrease

YoY－+375+23.2%

254

12.7%

+36+16.5%

761005.0％+24+32.3%

7899

5.0％

+21+27.3%

4.7％+44+88.3%＋30 yen－RecordHigh555094

15 yen20 yen50 yen

8%

12%

16%

3

Results by Segment / Sales Composition Ratio• Sales and income increased in Energy & Infrastructure and Electronic Equipment & Components Business• Sales increased but profits remained flat in Communication & Industrial Devices Business

FY2021
Sales Composition Ratio by Segment

FY2020
Actual(Unit: 100 million yen)

Net sales

OperatingincomeNet sales(Profit margin %)● Energy and Infrastructure
Business865

Others/Newbusiness
2%

FY2021Actual54(6.3%)

Operatingincome(Profit margin %)1,069

65(6.0%)● Communication andIndustrial Devices Business270● Electronic Equipment andComponents Business431● Others(New Business)

52

△442

△6(38)

(1)

(31)

(2)

76

1,992

Total

1,617

18(6.9%)7(1.7%)(4.7%)

295
586

18(6.2%)24(4.0%)Generalpurpose
products
12%
Other highperformance
products
3%
High-performance
products oxygen
free copper
15%

Outer circle：
Segment
Inner circle：
Sub-segment

Construction
35%

Precision
devices3%
Wire harness
5%

Seismic
isolation/Others
4%Electric powerinfrastructure
14%
Communication
cable
7%

100(5.0%)

4

Energy and Infrastructure BusinessResults
Despite the partial impact of higher raw material prices, both sales and income increased in construction-related, electric power infrastructure,and seismic isolation.
Copper priceimpact＋¥4.2 billion

Net sales

Copper priceimpact＋ ¥3.4 billion

Copper priceimpact＋¥4.3 billion

Copper priceimpact＋ ¥4.1 billion

Construction
Seismic isolation/Others

1,069

1,100300

1,000

211 180 230

224 209 263

232 230289

287
218 247

Q1

Q2

Q3

Q4
FY2019FY2020Concentration ofconstruction
projects

Operating income

800

656154241912145Q112Q21617500

13Q340554

302026127%

779%

23526%

279
10100

1917706

546

200

2064%

0109%

60
5066%

62%

Allowance processing 400for Middle East power
construction projects 300- ¥0.4 billion
30%300900600
FY2021

70865
885

700

01080

（Unit: 100 million yen）

200
100

Electric power infrastructure
Operating income

FY201977FY2020

8%

840FY2021

Q4FY2019

FY2020

FY2021*The new accounting standard has been applied only to the results for FY20215Communication and Industrial Devices BusinessResults
Profits remained flat due to supply chain disruptions and raw material price hikes, but the reorganization of production bases was completed,contributing to improved profitability in part.
Copper priceimpact＋¥0.2 billion

Net sales

76

69

61

77

66

71

76

70

81

76

73

30

305

300

60
75

295
270

25
53%

0Q1Q2

Q3

200

Q4
FY2019FY2020Operating income

144131
163

1830%

9236%

97

17%

5016%

42

2049%

49%

FY2021

Effects of 100Reorganization

91834%

10101

863Wire harness
Operating income（Unit: 100 million yen）

9030

Communication cable
Precision devices

Copper priceimpact＋¥0.3 billion

Copper priceimpact＋¥0.3 billion

Copper priceimpact＋¥0.3 billion

55676443553

FY2019

0Q1

Q2

Q30

FY202017%

500
FY2021Q4FY2019FY2020

FY2021*The new accounting standard has been applied only to the results for FY2021

6

Electronic Equipment and Components BusinessResults
Despite the significant impact of automobile production cutbacks from the latter half of Q2, both sales and income increased for both high-performance
products and general-purpose products due to the impact of higher copper prices.
Copper priceimpact＋ ¥3.8 billion

Net sales

Copper priceimpact＋ ¥3.8 billion

Copper priceimpact＋ ¥3.3 billion

Copper priceimpact＋ ¥1.9 billion

150
143

132
87

116

152

500

96

114

120

146

110

127

471

145

2452%

431

400

0Q1Q2

Q3

FY202020FY2021

Operating income

216

300

Expanding impact ofautomobile production cuts 100

858%

1

1Q2

10%

258

49
10

44755%

640%
40%

235

171

76Q118200

10050%

196
4%

1302

42%Q4FY2019

030（Unit: 100 million yen）

10050

600

High-performance products oxygen free copper
Other high-performance products
General-purpose products
Operating income586

1042Q3330
FY2019FY2020

FY2021Q4FY2019

FY2020Fy2021*The new accounting standard has been applied only to the results for FY2021

7

Consolidated Balance Sheet(Comparison with the previous fiscal year-end)
・Equity ratio is 40%（Unit: 100 million yen）

March 31,2021

March 31,
2022

4234

△8Notes and accounts
receivable-trade and contract
assets439

527+89Inventories

215

260+45Others

5766＋9Cash and deposits

March 31,2021

Change753

887+134

Property, plant andequipment

397

414+17

Intangible assets

14Investments andother assets
Total fixed assets

Total assets

13

△0131

159+28542

587+45

1,295

1,474+179

ChangeNotes & accounts payable

224

267+43

Short-term borrowings

247

262+16

Others159

174+15629

703+74121

121+06360△3Total long-term liabilities

184

181

△3Total liabilities

813

884+71

Capital stock

242

242

0

Capital surplus

57

57+0

Retained earnings

106

183+78Others

77

107

+30

Total net assets

482

589+108

1,295

1,474+179

Total current liabilities
Long-term debt & bonds

Total currents assets

March 31,2022

OthersTotal liabilities & net assets

8

FY2022 : Forecast
Net sales

Operating income
Ordinary income(Unit: 100 million yen)

(Unit: 100 million yen)

2300

110

8.9%
increase

10.3 billion yen (YoY : 4.2% increase)
2.6%increase

2,170
105

2100

103

100
100

1,992
1900

Net income attributableto owners of parent

95

7.5 billion yen (YoY : 19.8% decrease)
90
1700
85

1500

Dividend/
Payout ratio80FY2021 Actual

Fy2022 Plan

FY2021 Actual

FY2022 Plan

60 yen / 24% (YoY : 10 yen increase)

Despite the impact of further price hikes in raw materials and disruptions in the supply chain, we plan to increase profit due to theeffects of various measures and structural reforms.

9Medium-term Management Plan
Change ＆ Growth SWCC 2026 Key KPIs
• We will promote its medium-term management plan by setting operating income, ROIC, anddividends as key KPIs.
Corporate growth

Capital efficiency

Operating incomeROIC

15 billion yen(100 million yen)

Shareholder value
Dividend(Yen)150Over 10%150150(％)

Over 120 yen
Over 120

Over 10101001007.6103

7.0100605505050000
FY2021
ActualFY2022Plan

FY2026
TargetFY2021
ActualFY2022Plan

FY2026
TargetFY2021
ActualFY2022Plan

FY2026
Target10

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 FutureFactors 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. (TSE Prime: 5805)