Creating for the Future

SWCC Group
Supplementary Material for the First Quarter of the Fiscal Year Ending March 2023
August 3, 2022

昭和電線ホールディングス（株） 東証プライム（5805）

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

FY2022 Q1

Overview of Financial Results

Business
environment Due to the long-term situation in Russia and Ukraine and the impact of lockdowns in China andShanghai, raw material and logistics prices have risen and the yen has depreciated, and theglobal supply chain continues to be disrupted
 Demand for automobile-related products declined due to a shortage of semiconductors.
 In the electric wire industry, overall demand for electric wire declined slightly.
 Average domestic copper prices rose YoY.

Net sales

Overall sales increased YoY due to higher copper prices, despite a decrease in copper shipments.
【Status by Major Business Field (YoY)】
Electric power infrastructure: Although the number of large-scale projects declined, we captured
demand related to renewable energy.
Automobiles: Demand for high-performance products is sluggish due to the impact of automobile
production cutbacks that have continued since last year.
Industrial Devices: Demand increased, but the impact of global supply chain disruptions continued.

OperatingincomeProfits down YoY. Despite reviewing sales prices and cutting costs in response to soaring raw
material prices, our performance was affected by delays in passing on higher prices for some products,
reduced automobile production, and global supply chain disruptions.

2Key Points of the Financial Results for Q1 FY2022
Q1 YoY Change

Q1 Progress rate

Sales increased but profits decreased YoY due tohigher copper prices, despite a decrease in copper
shipments.

Net sales
Up10.7%(Unit: 100million yen)

Operatingincome

Down
16.0%

452

FY2021

Net sales progressed on a par with normal year.
Operating income has exceeded the 4-year averages.

Full-yearplan

FY18-21
Avg.
progressrate

Q1
progressrate

Net sales

2,170

23.2%

23.1%

Operatingincome

103

17.9%

20.9%

(Unit: 100million yen)

500
26

FY2022

FY202122

FY20223

Q1 Consolidated Statements of Income(Unit: 100 million yen)

FY2021Q1 Actual

FY2022
Q1 Actual

FY2022Full-year plan

Progress rate％YoY ％Net sales

452

500

2,170

10.7

23.1

Operatingincome2622103

▲16.0

20.9

Operatingincome margin(%)

5.7

4.3

4.7ーーOrdinary
income2623103

▲12.8

22.2

Net income
attributable toowners of parent

171675

▲4.6

21.9
4

1Q: Change Factors for Net sales and Operating income (YoY)
Change factors for net sales+¥5.5 billion

Energy andInfrastructure
Business

FY2021Q1¥45.2 billion+¥0.3 billion

Effect of rise incopper prices-¥1.6 billion

Electronicequipment
andComponents
Business+¥0.7 billion
Communication andIndustrialdevicesBusiness-¥0 billion

FY2022
1QOthers¥50 billion

Change factors for operating income
FY2021Q1¥2.6 billion-¥0.2 billion
Decrease inprofit
increase due
to copper
price impact-¥0.5 billion-¥0.2 billion+¥0.3 billion+¥0.2 billion

FY2022
1Q

Structural reforms
Price hikes inSales
price
Downinsalesdueto
raw materials,
automobile production shift and cost
¥2.2 billionetc.
cutback
reduction【Change factors】
１．Net sales
Increased mainly by passing
cost increases due to higher
copper prices on selling prices
in a timely manner.
２．Operating incomeDecreased due to delays inpassing on cost increases forsome products and a decreasein sales due to reduced
automobile production in theElectrical Equipment andComponents Business.
【Future Initiatives】
Covered mainly by measures topass on higher sales prices,
reduce costs, and promote
structural reforms in responseto the downward pressure on
incomes from soaring raw
material and other prices.

580

1,100

Q1 Results by Segment and Full-year
Plan 70
1,000
Energy and Infrastructure BusinessConstruction
Seismic isolation/Others

Electric power infrastructure
Operating income

1,1001470%755

300
27%7%

6225%

165%

FY2021 Q1Operatingincomemargin200 26% 286

6513100

FY2022 Q1

6.3%

00

6.5%

143

5050%

5%

54

Full-year

6.2%

Copper price impact: Net sales up by 2.5 billion yen.
Both sales and profits increased YoY due to revisions to sales prices
and cost reductions to secure appropriate profits In the construction
business and capturing highly profitable demand for renewable energy
in the electric power infrastructure.

7%

2010043%

049%

7%

1044%

61

FY2021 Q1Operatingincomemargin76
1168656% 403

300

Communication cable
Precision devices

12%8650100(Unit: 100 million yen)
78

40

6946%

00

4.0%

32%

226

Full-year

2.2%

Copper price impact: Net sales up by 2.8 billion yen.
Sales increased and profits decreased YoY as sales for heavy electricmachinery and industrial equipment were firm, but sales of highperformance products for the automobile industry were affected by theautomobile production cutbacks that continued from the previous 2Q.

32

20200
100

Wire harness
Operating income

350

30400

FY2022 Q1

5.4%

16600
500

72715

70010
155

Communication and Industrial Devices Business

60

800

830400

Other high-performance
products
Operating income(Unit: 100 million yen)
200
70

40100

50010

100069%

600

179

80

High-performance products
oxygen free copper
General-purpose products

60

800

200
15268

900
258 17
700

66%

1,095

1,00020300(Unit: 100 million yen)
230

Electronic Equipment and Components
Business
900

36%

100

018%

45%

533%

1221%

FY2021 Q1

10300

295

250

25200

51%

252015015150

25Operatingincome
margin3530

26100217FY2022 Q1

7.4%

5000

2.2%

30%

1088

519%

57

Full-year
8.5%

Copper price impact: Net sales up by 200 million yen.
Sales increased but profits decreased as price review was delayed
despite the effect of reorganization of domestic production bases in thecommunication cables business. Industrial devices were also affected bysupply chain disruptions.

60

Q1 Balance Sheet (Comparison with the previous fiscal year-end)(Unit: 100 million yen)
Total assets
Trade receivables
Inventories
Currents assets
Total liabilities
Interest-bearing debt
Total net assets
Shareholders equity
Shareholders equity
ratio (%)
DE ratio (%)

March 31,2022
1,474527
260587884
392

June 30,2022
1,537

Change64522
287615▲５2728937

53454

63600

11589583
39.5

592
38.5

10▲１67.2

76.7

9.5

【Fixed assets】

Increased due to various capital
expenditures (upgrades and increasedproduction). In addition, the Company
contributed 2.1 billion yen in special
premiums to the pension assets of theretirement plan.

【Interest-bearing debt】

Increase in working capital due to special
premiums and soaring copper prices.

【Shareholders equity ratio 】

Despite an increase in shareholders' equity,
total assets decreased 1% from the end of
the previous fiscal year due to an increase
in total assets.

【DE ratio】

Shareholders' equity increased, butinterest-bearing debt also increased,
resulting in a 9.5% increase from the end of
the previous fiscal year.

7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)