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Supplementary
Material for theFiscal Year ended March 2023
2023年3月期
決算補足説明資料
2023年5月12日
May 12, 2023

TSE
PRIME 5805
: 5805
東証プライムContents

１．FY2022 Overview of Financial Results
２．FY2023 Full Year Forecasts

2

１．FY2022 Overview of Financial Results

3

Overview of Financial Results for FY2022
Results: Sales and profits increased YoY, due to the effects of structural reforms and strong business, despite theimpact of the external environment.
• Energy and Infrastructurebusiness

Sales and profits increased YoY. The construction-related products captured the stable demand, as we revised
sales prices in response to rising raw material prices and improved profitability by integrating the manufacturing
and sales business. In products for electric power infrastructure, demand for renewal projects due to aging andrenewable energy-related products remained firm.

• Electronic equipment andComponents business

Sales and profits decreased YoY. Sales of high-performance products for automotive applications were sluggish
due to the impact of reduced automobile production, which continued from 2H of the previous fiscal year, despite
capturing demand for some products from Europe.

• Communication and Industrial
devices business

Sales increased and profits decreased YoY, although some negative effects in 1H, such as the partial delay instarting the reorganization of domestic telecommunication cable production bases and the impact of thelockdown in China on the industrial devices, improved in 2H.

Progress Rate（Net Sales/Operating Income/Ordinary Income/Net Income）(Unit: 100 million yen)

2,000Net Sales
2,170
2,091

1,500
1,0005000Plan

Results

120100Operating Income
105103120100* Both ordinary income and net income reached record highs(Reflects revised earnings forecast announced on September 22, 2022)

Ordinary Income103

104Record
High120
10080

80

80

606060

40

4040

20

20

20000Plan

Results

Plan

Results

Net IncomeRecord
High9094

Plan

Results

4

FY2022: Consolidated Statements of Income
Sales and profits increased YoY. Profits exceeded the plan, with both ordinary income and net income
reaching record highs.
（Unit: 100 million yen）

FY2021
ActualFY2022
ActualYoY（％）Net Sales

1,992

2,091

5.0

Gross Profit254

258

1.8

Operating Income

100105

4.3

Ordinary Income99

Record High104

5.2

Net income attributableto owners of parent

94

Record High

94

0.6

Dividend per share（Yen)5060（Difference fromprevious year）

10ROE（％）

17.7

15.0

（Difference fromprevious year）▲2.77.1（Difference fromprevious year）▲0.5ROIC（％）

7.65

FY2022 Change Factors
2,200億円

Change factors for net sales+ ¥15.1 billion

2,150億円

Energy andInfrastructure
Business

2,100億円
2,050億円
2,000億円
1,950億円
1,900億円
1,850億円

FY2021¥199.2billion

1,800億円- ¥0.2 billion

Effect of rise incopper prices[Change factors]- ¥8.4 billion+ ¥3.2 billion
ElectronicEquipment
andComponents
BusinessCommunication
and Industrial
devices Business+ ¥0.2 billion

FY2022OthersForeign exchange
impact: ¥1.6 billion

Energy and Infrastructure Business: 6.6 billion yen
Electrical Equipment and Components Business: 7.9 billion yen
Communication and Industrial Devices Business: 0.6 billion yen¥209.1billion

Change factors for operating income
FY2021¥10.0billion- ¥0.9 billion
Slower profit
growth dueto copper
price impact- ¥3.1 billion + ¥3.1 billion

Price hikes in
raw materials,etc.

+ ¥0.8 billion + ¥0.1 billion + ¥0.4 billion

FY2022Foreign exchange
Elimination ofconversion
temporary losses
Structural reforms
impactIncrease in selling
prices and cost
reduction¥10.5billion

1. Net sales
Increased mainly by passing
cost increases due to higher
copper prices on selling prices
promptly.
Foreign exchange effects
include about 1.6 billion yen in
the Communication andIndustrial Devices Business.
2. Operating income
The rise in raw material prices
was covered by sales pricerevisions and cost reductions.
Profits increased thanks to therestructuring benefit of 800
million yen and the foreignexchange gain of 100 million yen.

6FY2022 Results by Segment
Profits recovered, despite the impact of the external environment, such as the reduced automotive production and thelockdown in China. This was due to the strong performance of the Energy and Infrastructure Business, driven by
the favorable sales of construction and power-related products, as well as the strengthening of measures in the2H of the year.
FY2021Actual（Unit: 100 million yen）

Energy and Infrastructure
Business
Electronic Equipment andComponents BusinessNet sales
Operating income
Operating income
margin(%)

Net sales
Operating income
Operating income
margin(%)

Net sales

Communication andOperating income
Industrial Devices Business
Operating income
margin(%)

FY2022
ActualYoY（％）FY2022
ROIC
（％）

1,069
65
6.0

1,133
77
6.8

6.0
18.5
（Difference from0.7
previous year）

8.7

586
24
4.0

581
17
2.9

▲0.8
▲28.7
（Difference from▲1.1
previous year）

6.9

295
18
6.2

333
185.3

12.8
▲3.1
（Difference from▲0.9previous year）

5.97

FY2022 Results by Segment / Energy and Infrastructure Business

Sales and profits increased YoY, backed by improved profitability through the integration of the construction-related manufacturing asales businesses and firm demand for renewal projects due to aging and renewable energy-related products.
Net sales （Unit: 100 million yen）
300
200
100

180230 258

209263 281230

302
247 287289 293

Q1Q2

Q3

Operating income （Unit: 100 million yen）
30

Concentrationof construction
projects

20

0Structuralreform effects¥0.2 billion

24865

514Q1171216Q21617FY2021

FY2022600

Q3FY202064%

69%

66%706554

50782

4030

300
200

10100Q40FY2021

54400

251960700

Structuralreform effects
500¥0.1 billion

FY2022807065800

Allowance processing
for Middle East power
construction projects- ¥0.4 billion

1977（Unit: 100 million yen）
1,000

Q4
FY2020

1,133

1,069

900

010

1,100Construction
Electric power infrustructure
Seismic isolation/Others
Operating income

27%

235

9%

77

FY202026% 2798%84

FY20212026% 294

105% 57

FY202280FY2022 Results by Segment / Electronic Equipment and Components Business
Sales and profits of high-performance products decreased YoY due to the impact of reduced automobile production, which
continued from 1H of the previous fiscal year, despite capturing demand for some products from Europe.
Net sales（Unit: 100 million yen）

150

600

100
5087

0143 155

96

Q1152 144

120

Q2146 161

127 145 122

Q3FY2021

FY2022

Operating income （Unit: 100 million yen）
8

500

6

61Q1Q2744

Decrease in demand due to thecustomers' inventory adjustments at theend of the fiscal year and the impact of
reduced automobile production.

5003Q331Q4FY2020

FY2021

FY2022

2452%

400

200
100530（Unit: 100 million yen）

300

10586

431Q4FY2020

High-performance products oxygen free copper
Other high-performance products
General-purpose products
Operating income
581

050%

216

10%

4440%

171 7

FY2020

44%

302

9%
8%

20254

4952

171040%235

FY2021

47%

276

FY202290FY2022 Results by Segment / Communication and Industrial Devices Business
Sales increased and profits decreased YoY, although some negative effects in 1H, such as the partial delay in starting the reorganization ofdomestic telecommunication cable production bases and the impact of the lockdown in China, improved in 2H.

Net sales（Unit: 100 million yen）

Communication cable
Wire harness
Precision devices
Operating income

9060
30

61069

78

71

66

Q18670

Q2

8195

Q3

Operating income （Unit: 100 million yen）
Structuralreform effects¥0.2 billion

63065
32Q1

4Q2

375

74

FY2021

FY20228753Q3270

10049%

0FY2021

47%

158
2049%

131 18

1836%

9734%

10116%

4217%

505Q4FY202020030295

144

Structuralreform effects¥0.1 billion

Structuralreform effects¥0.2 billion

4300

Q4FY2020

973（Unit: 100 million yen）

333

FY2020

FY2021

1831% 103

21%

1071

FY2022

FY2022

100FY2022 Consolidated Results
Balance Sheet (Comparison with the previous fiscal year-end)（Unit: 100 million yen）

Total assets
Trade receivables
Inventories
Current assets
Total liabilities
Trade payables
Interest-bearing debt
Total net assets
Shareholders equity
Shareholders equity ratio (%)

DE ratio (％)

March 31,2022

March 31,2023

Change1,4741,56793527260587884
267392589

527282646▲02160883▲2249412▲182068495

583
39.5675
43.192
3.5

67.2

61.0

▲6.3

[Fixed assets]
Increased due to retirement plan reform (including
special contribution of 2.1 billion yen) andrevaluation of securities.
[Interest-bearing debt]
Increase in working capital due to soaring raw
material prices and soaring copper prices.
[Shareholders’ equity ratio]
Total assets increased, but shareholders equity
increased due to an increase in retained earnings.,
etc. As a result, shareholders equity ratio increased
3.5% compared to the previous fiscal year-end.
[DE ratio]
Interest-bearing debt increased, but also
shareholders' equity increased, resulting in a 6.3%
increase from the end of the previous fiscal year.

＜Recognition of current issues and future measures＞
Inventories increased due to soaring raw material
prices and copper prices. Continue to optimize working
capital by ensuring inventories at appropriate levels
and promoting shorter debt collection periods.

11

FY2022 Consolidated Results
Cash Flow (Comparison with the previous fiscal year-end)
Operating CF increased by 3.7 billion yen YoY due to the reduction in the impact of the increase inworking capital during the sharp rise in copper prices last year; investment CF decreased by 2 billion
yen YoY due to a decrease in proceeds from the sale of fixed assets; and free CF increased by 1.7
billion yen YoY, securing 600 million yen in the current year.
（Unit: 100 million yen）

<YoY change>

Operating CF50

Investment CF20

△ 104＜▲20＞

＜+37＞

△ 30
△ 40
営業ＣＦ＜＋17＞
6▲ 11▲ 15△ 20

Cash andcash equivalents
33300

Financial CF

424010Free CF

▲ 35

投資ＣＦ

FY2021フリーＣＦFY202240

1▲1＜▲0＞

＜＋7＞

財務ＣＦ

現金＆同等物期末残12

2．FY2023 Forecasts

13

FY2023 Full-Year Forecasts
The forecast incorporates higher energy and other costs but plans to increase sales and profits through variousmeasures. We plan to increase shareholder returns by paying an interim dividend.
Net sales(Unit: 100 million yen)
2300

2100

Operating income(Unit: 100 million yen)

2.8%
increase

2,091110

2,150105

2.2%
increase

105

10.6 billion yen (YoY: 2.0% increase)107
Net income
attributable toowners of parent

100

7.0 billion yen (YoY: 25.6% decrease)

95

1900

90

Dividend/
Payout ratio

1700
85
1500

FY2022 Actual

FY2023 Plan

80

Ordinary income

75 yen / 32% (YoY: 15 yen increase)
FY2022 Actual

FY2023 Plan

Interim: 35 yen Year-end: 40yen
Total: 75 yen

14

FY2023 Change Factors
Change factors for net sales+ ¥5.5 billion¥209.1billion- ¥2.8 billion- ¥0.3 billion
Energy andInfrastructure
Business

FY2022+ ¥2.9 billion

Effect of rise incopper prices+ ¥0.6 billionElectronic
Equipment
andComponents
Business

Communication
and Industrial
devices BusinessOthers¥215.0billion

Energy and Infrastructure Business: 0.5 billion yen
Electrical Equipment and Components Business: 5.0 billion yen

Change factors for operating income
FY2022- ¥1.1 billion+ ¥1.1 billion+ ¥0.2 billion
Structural reforms¥10.5billion

FY2023- ¥0.2 billion
Rising energy, logistics,
and other costs

Absence of the
COVID-19 special
demandIncrease in selling
prices and cost
reduction+ ¥0.2 billion

FY2023New business（ICT）¥10.7billion[Change factors]
1. Net salesExpected to increase mainly
by passing cost increases
due to higher copper prices
on selling prices in a timely
manner.
2. Operating income
The higher energy andlogistics costs will be coveredby sales price revisions andcost reductions. Profits are
expected to increase due tothe full-fledged launch of
new businesses (ICT), inaddition to the 200 million
yen restructuring impact.

15

FY2023 Plan by Segment
Energy and Infrastructure BusinessConstruction
Seismic isolation/
OthersElectric power infrastructure
Operating income （ ）Operatingincome ratio(Unit: 100 million yen, %)1,2001,100
1,000
900
800
700
600
500
400
300
200
1000

1,135

1,13377(6.8)7077(6.8)
782

80

775

60
50
40294

310

5750
FY2023E

FY2022

Electronic Equipment and Components Business
High-performance products
oxygen free copper
General-purpose products(Unit: 100million yen, %)
700

600

400

254

300

52

30

100

200

Copper price impact：Net sales up ¥0.5 billion
Positive factor● Improved profitability by integrating production and sales in
the construction-related●Sales contribution from investment in increased productionof SICONEX®
Negative factor● Decrease in special demand for construction

66025581

500

200

Other high-performance
products
Operating income （ ）Operating
income ratio

17(2.9)276

FY2022280

2060

1515(2.3)10320

FY2023E

Communication cable
Precision devices

400300333

18158 (5.3)

20010000

Positive factor●Recovery of high-performance products for xEVs in 2H of the year
●Steady demand for heavy electric machinery

Wire harness
Operating income () Operating
income ratio(Unit: 100 million yen, %)5

Copper price impact：Net sales up ¥5.0 billion

Negative factor●Sluggish 1H sales of high-performance products for xEVsCommunication and Industrial Devices Business

10371
FY2022305

19(6.2)

20160

105
40
FY2023E

10

Copper price impact：ー

Positive factor● Maximize the effects of the reorganization of telecommunication cableproduction bases.
● Elimination of China lockdown
Negative factor●Absence of the COVID-19 special demand in the Industrial Devices
Business.

16

Recognition of the Business Environment in FY2023
Progress in 1H performance is expected to be moderate compared to usual years. Profits are expected to grow for
the full year due to robust demand for power and telecommunications-related products in 2H and full-scale launch ofnew businesses.
1H

2H

Same level as usual year

Same level as usual year

Electric PowerPower-related projects tend to be weighted toward 2H

Concentration of power-related projects with strong demand,such as renewable energy developments
Expand sales by increasing SICONEX ® production

Automobiles

High-performance products for xEV enter a correction phasetoward recovering demand

Recovery in demand for high-performance products for xEVIndustrial Devices

Absence of the COVID-19 special demand in the Industrial
Devices Business

Recovery in demand in the Industrial Devices BusinessCommunication

Same level as usual year

Expand overseas sales of e-Ribbon ®, expand sales ofFLANTEC ® for automotive applications

New Business (ICT)Same level as usual year

Full-fledged implementation of ICTConstruction
Recognition of theBusiness Environment17

FY2023 Consolidated Results CF Forecast and Capital Expenditure Plan
＜ Consolidated CF ＞
Operating CF

150（Unit: 100 million yen）

Investment CFFree CF130<YoY change>＜ Capital Expenditure Plan ＞

Financial CF
Cash andcash equivalents

0△ 50

R&D

7%

2%

10050Reduction of environmental impact, etc.

Rationalization andICT enhancement5042＜▲45＞ 6＜+88＞＜▲49＞＜+44＞ ▲ 1▲ 35▲ 80△ 10040 40

FY202214%

Production Capacity Expansion

27%
FY2023
CapitalExpenditurePlan¥6.7 billion＜０＞51%▲ 50
FY2023E

Reorganization and strengthening ofproduction bases, facility renewal

Breakdown by Segment
Energy and Infrastructure Business¥2.5 billion

Operating CF increased in FY2023 due to a reduction inElectronic Equipment and Components Business¥1.8 billion

working capital.

Communication and Industrial Devices Business¥1.0 billion

Investment CF increased due to increased capital investment.

Others¥1.4 billion

18https://www.swcc.co.jp
Forward-looking statements in this document are based on information available at the time 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.
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 to the above.