Creating for the Future

SWCC Group
Medium-term Management Plan

Change & Growth SWCC 2026

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

Table of Contents
１．Review of the Current Medium-term Management Plan “Change SWCC 2022”
Rolling Plan (2019)・・・ P3

２．Corporate Vision "SWCC VISION 2030"/
Medium-term Management Plan "Change ＆ Growth SWCC 2026"

・・・ P8

３．Business Strategy by Segment

・・・P15

４．Growth SWCC 2026

・・・P23

５．Sustainability Strategy

・・・P27

６．Financial Strategy

・・・P302

Review of the Current Medium-termManagement Plan
“Change SWCC 2022” Rolling Plan (2019)

東証一部（5805）

Transitions of the Current Medium-Term Management Plan
“Change SWCC 2022”
FY2018FY2019FY2020

FY2021

FY2022

FY2026"Change SWCC 2022"
Rolling Plan（2019）

SWCC VISION 2026

"Change SWCC 2022"
Rolling Plan（2019） Goal

"Change SWCC 2022“ Start
Basic Policy for Medium-termManagement Plan
1. Strengthen profitability of core businesses
2. Create new businesses
3. New overseas business development

Acceleration of decarbonization
Expansion of COVID-19
Trade friction between the U.S. and China

Establishment of the“New Normal” lifestyles

Rising tensions between the U.S. and China

Occurrence of large-scale disasters
Aging society with low birthrate

Super-aging society, declining working population, succession issue4Current Medium-term Management Plan
"Change SWCC 2022" Rolling Plan (2019) ①【Operating income margin】【Dividend per share】【Equity ratio】

FY2022 Target : 5.0% or more
FY2021 Plan : 4.9%

FY2022 Target : 50 yen or more
FY2021 Plan : 40 yen

FY2022 Target : 38% or more
FY2021 Plan : 38%(Yen)(100 million yen)(100 million yen)

Operating income/Operating income margin

(％)

110

5.5

95

100

5.0

4.0

50

3.5
FY2018FY2019Operating income

FY2020

FY2021(Plan)FY2022(Target)Operating income margin

Net assets/Equity ratio
600

38

25
20

18
50

40
40

4.5

70

(％)

60

5.0

4.9
90

Dividend per share/
Dividend payout ratio

20
15

552

500

(％)
38
550

40
35

400

30

300

25

10

20

5
0

0
FY2018FY2019FY2020

Dividend per share

FY2021(Plan)FY2022(Target)Dividend payout ratio

200

20
FY2018FY2019FY2020Net assets

FY2021(Plan)FY2022(Target)Equity ratio

5Current Medium-term Management Plan
"Change SWCC 2022" Rolling Plan (2019) ②
Efforts to strengthen the management base and results of the basic policy for medium-term management plan
Total investment inoverseas business:
About 2 billion yen

Promotion of local production for local consumption in the
precision devices business
Relocation and expansion of wire harness plant in Jiaxing,
China

R&D expenses
Up by 14％
Achievementrate

New overseas business development
Development of the Zero-trust
security business

40%

Achievement
rate

Development of disposable products

Create new businesses
New segment
structure

Reorganization of domestic
production bases
Withdrawal and sale ofunprofitable businesses

Investment in increased
production of strategic products
Introduction of ROIC management

40%

ROIC
FY2020 6.3%
Achievement
rate

60%

Business development throughalliancesStrengthen profitability of core businesses
Establishment of Nomination Committee
and Compensation Committee
Achievement
rate

70%

Transition to a company with an Audit
Committee

Introduction of new personnel system

Introduction of business segment system

Establishment of the Next Generation Management
Succession Plan

Strengthening of management foundation
6

Investments in the Reorganization andStrengthening of Domestic Production Bases
FY2022FY2019Medium-term Management Plan
"Change SWCC 2022” Rolling Plan（2019） Start

FY2026

Medium-term Management Plan "Change
SWCC 2022 “ Rolling Plan（2019）Goal

SWCC
VISION 2026

Structural reform project through the reallocation of production bases across the Group
Energy and Infrastructure Business[Electric power components]
Efficiency improvement by reallocation and increased production: ¥2 billion[Seismic isolation and others]
Efficiency improvement by reallocation: ¥200 million
Communication and Industrial Devices Business[Communication cable]
Relocation and consolidation of group bases: ¥1.4 billion[Precision devices]
Relocation and overseas transfer of bases: ¥500 million

Electronic Equipment and Components Business[High-performance products]
Efficiency improvement by reallocation: ¥1.4 billion

Strengthening of production bases
Natural disaster countermeasures and renew aging infrastructure

7

Corporate Vision
SWCC VISION 2030
Medium-term Management Plan
Change ＆ Growth SWCC 2026
東証一部（5805）

Corporate Vision SWCC VISION 2030
Medium-term Management Plan Change ＆ Growth SWCC 2026
Basic policy for
Medium-term Management Plan
１．Strengthen profitability of corebusinesses
２．Create new businesses
３．New overseas business development
Strategy❶

Strategy❷

Creating for the Future
SWCC VISION 2030
Creating value for the future

ChangeFurther structural reforms

SWCC VISION 2030

GrowthFY2030 performance targets

Transition to growth phase

Medium-term Management Plan
"Change & Growth SWCC 2026"

Net sales: 220 billion yen
Operating income: 20 billion yen
Operating income margin: 9％ or more
ROIC: 10.0％

FY2026 performance targets
Net sales: 215 billion yen
Operating income: 15 billion yen
Operating income margin: 7％ or more
ROIC: 8.5％
9Medium-term Management Plan Change ＆ Growth SWCC 2026
FY2018FY2022FY2019"Change SWCC 2022"
Rolling Plan（2019）"Change SWCC 2022"

FY2026

Medium-term Management Plan
"Change & Growth
SWCC 2026" Start

Strategy ❶Change- Further structural reforms

FY2030Goal

SWCC
VISION 2030

Strategy ❷Growth- Transition to growth phase

1. Increase profitability through the penetration of
ROIC management

1. Promote business for solving social issues

2. Value chain reform and business modeltransformation through DX

3. Transition to growth phase through further

3. Strengthen corporate governance system

2. Shift portfolio to growth businesses

investment

10

Business for Solving Social Issues
Contributing to the resolution of social issues for creating a sustainable society.
Environment / Energy

Social Issues●Realization of carbon
neutral society●Increase in power
consumption

Promotion ofrenewable energy

Disaster Prevention /InfrastructureLife / Mobility

Education / Human
Resource Development●Aging of social
infrastructure●Occurrence of large-scale
natural disasters● Environmental pollution
caused by internal
combustion engine vehicles● Coming of post-COVID era●Decrease in the working
population● Lack of remote learning
environment

Strengthening urban
resilience

Realization ofhighly efficient EV motors

Solving the shortage ofworking population

Medical Care / Health●Shortage of medical
personnel● Increase in medical costs

Enhancement of the
medical environment

Solving Social
Issues
Safe and comfortable
automatic driving

11Medium-term Management Plan Change ＆ Growth SWCC 2026

Net sales:
Net sales:¥161.7 billion¥200 billion
Operating income:Operating income:¥10 billion¥7.6 billion

Operating income
margin:Operating income
margin:4.7%

5% or more

Net sales:¥215 billion
Operating income:¥15 billion
Operating income
margin:7% or more

FY2020 Result

FY2022 Plan

FY2026 Target

Net sales

161.7 billion yen

200 billion yen

215 billion yen

Operating income/Operating income margin

7.6 billion yen /4.7%

10 billion yen /5% or more

15 billion yen /7% or more

Ordinary income

7.8 billion yen

9.8 billion yen

15 billion yen

Net income attributable to owners ofparent5 billion yen

6.6 billion yen

10 billion yen

Dividend per share/
Dividend payout ratio

20 yen / 12%

50 yen or more /About 20%120 yen or more /About 35%

Interest-bearing debt

37.7 billion yen

43 billion yen or less40 billion yen or less

79%

70% or less

50% or less

Net assets

48.2 billion yen

60 billion yen or more

85 billion yen or more

Equity ratio

36.7%

40% or more

50% or more

ROE/ROIC

11.4% / 6.3%

10% or more /
7.0% or more

10% or more /
8.5% or more

EBITDA

10.8 billion yen

13 billion yen or more

20 billion yen or more

DE ratio**DE ratio is calculated using equity capital.

Net sales:¥220 billion
Operating income:¥20 billion
Operating income
margin:9% or more

FY2030 Vision12Changes in Business Portfolio
FY2020

FY2026

Net sales

161.7 billion yen

215 billion yen

220 billion yen

Operatingincome7.6 billion yen

15 billion yen

20 billion yen

4.7%

7％ or more

9% or more

Operatingincome margin

FY2020
Ratio to sales

FY2026
Ratio to sales

CAGR Target
FY2022-FY2026

FY2030

FY2026
Profit target

FY2030
Ratio to sales

Automobile

16%

20％

+3～5%

21％

Electric power

14%

14%

+5～10％

15％

Construction

40％

33%

Around ０～＋1%

28%

Telecommunicati
ons

8%

8%

+3～5％

9%

Industrial
equipment

20%

21%

+5～10％

22%

２%

4%

Over ＋15％

5%

ICT

13

Shift Portfolio to Growth Businesses

Future growth potential＋＋

Comparison of portfolio
between FY2020 and FY2026

ICT

Automotive
Industrial
Equipment
Electric
power
Telecommu
nications＋

Construction－

General-purpose products

ー

＋

＋＋

Efficiency (EVA: ROIC-WACC spread)14

Business Strategy by Segment

東証一部（5805）

Strategy for Energy and Infrastructure Business ①
Social issue
Environment / Energy●Realization of carbon neutral
society●Increase in power consumption

Growth strategy❶ Capture demand for interconnection of renewable energies through power
construction solutions❷ Improve profitability by reforming the business model in the construction field❸ Strengthen construction capabilities by developing sustainable human resource
systemStrengthening urban resilience●Aging of social infrastructure

Education / Human
Resource Development●Decrease in the working
population●Lack of remote learning
environment

Electric power
infrastructure27％

Promotion of renewable energy

Seismic
isolation/Others
6％

Seismic
isolation/Others
９％

Disaster Prevention /Infrastructure●Occurrence of large-scale
natural disasters

Solving social issues

Electric power
infrastructure31％¥86.5 billion
FY2020Net sales
Operatingincome¥5.4 billion

Constructionrelated
64％¥97.9 billion
FY2026
Net sales
Operatingincome¥8 billion

Constructionrelated
63％

Solving the shortage of working
population

Capital investment●Further investment: 4.8 billion yen●Replacement investment: 4.2 billion yen

16Strategy for Energy and Infrastructure Business ②
Reforming the value chain through DX and promoting a business solving social issues by capturing demand
for renewable energy interconnections

Change Further structural reforms

Growth Transition to growth phase

Value chain reform and business modeltransformation through DX

Promotion of business forsolving social issues

Changing the business model for construction wires with the web shop “Kaeru-ya”

Develop SICOPLUS™ to capture demand for renewable energy interconnection

DX Solutions

Frequency
converter station

Optimal productlineupOrder receipt
process

Introduction of AI
and IoT

Manufacturing
process

Efficiency
improvement for
shipping andtransportation

grid line
grid line
grid line
Converter station

Ultra-high voltage network
Power transmission systemoverhead and underground lines

Hydroelectric power station

Web shop“Kaeru-ya”

Logistics
process

Large-scale plants
Fire power station
Solar power generation

Large-scale Solar
power station

Decentralized System

Smart City
Private power
generation

Power grid
Network transmission system
Overhead and underground lines

Smart
house

Reform the value chain
to create a highly profitable business model

Self-supportingline

Biomass power
generation

Wind power
generation

Storagebattery

Electric car

Self-supportingline

Large-scale wind power plant
Offshore wind power

Large-scaleconsumer

Alliance with EXEO Group, Inc.

17

Strategy for Communication and Industrial Devices Business ①
Social issue
Life / Mobility●Environmental pollution
caused by internal combustion
engine vehicles●Coming of post-COVID era

Growth strategy❶ Expand sales to meet the growing demand for high-speed data
communications in the “new normal” society❷ New development of technologies by leveraging the best partner
position❸ Expand global business by further optimizing the supply chain

Disaster Prevention /Infrastructure●Aging of social infrastructure●Occurrence of large-scale natural
disasters

Medical Care / Health●Shortage of medical personnel●Increase in medical costs

Precision
devices
16％

Precision
devices
16％

Education / Human
Resource Development●Decrease in the working
population●Lack of remote learning
environment

Solving social issues¥27 billion
FY2020Net sales
Wire harness
39％

Operatingincome¥1.8 billion

Realization of
new living space¥42.8 billion
Communicati
on cable
45％

FY2026
Net sales
Wire harness
42％

Safe and comfortable
automatic driving

Operatingincome¥4.5 billion

Communicati
on cable
42％

Enhancement of educationaland medical environments

Capital investment●Further investment: 2.4 billion yen●Replacement investment: 1.4 billion yen

18Strategy for Communication and Industrial Devices Business ②
Capturing demand for high-speed Ethernet communication applications due to increased
communication traffic and increasing production capacity of major products

Change Further structural reforms

Growth Transition to growth phase

Automation and digitalization of production
lines

Promotion of business solving social issues

Strengthen the "production innovation line" at the
precision device factory in Japan

New market development of FLANTEC™ high-speed LAN
cablesAutonomous
drivingLabor saving
by robot

Higherstandardization

Strengthen
competitivenessLabor saving

Improvementof quality
controlBCP
measures

Office network

High
speed

Remotemonitoring ofequipment status

Real-time
management of
production progress

FA networkDX

New productdevelopment

19

Strategy for Electronic Equipment and Components Business ①
Social issue

Growth strategy

Solving social issues

Environment / Energy❶ Capture the demand growth for electrification due to the full-scale shift to xEVs byincreasing production.
❷ Introduction of new manufacturing technologies to meet growing demand forhigh-performance products❸ Development of high-performance products in new fields and needs●Realization of carbon neutral
society●Increase in power
consumption

Life / Mobility

General-purpose
products
40％

High-performance
products
Oxygen free copper
50％●Environmental pollution
caused by internal
combustion engine vehicles●Coming of post-COVID era¥61.4 billion
FY2026
Net sales

FY2020Net sales
Operatingincome¥700 million
Otherhigh-performance
products
10％

Safe and comfortable
automatic driving

General-purpose
products
31%¥43.1 billion

Otherhigh-performance
products
16％Realization of highly efficient
EV motors

Operatingincome¥2.6 billion

High-performance
products
Oxygen free copper
53％

Power saving in electronic
devices

Capital investment●Further investment: 3.4 billion yen●Replacement investment: 3.2 billion yen

20Strategy for Electronic Equipment and Components Business ②
Accelerating the shift to automotive applications and expanding into new markets by increasing
production of high-performance products＆

ChangeFurther structural reforms
Production line reform for increasing production
Plan to further increase MiDIP® production capacity

GrowthTransition to growth phase
Promotion of business solving social issues
Promotion of the "K Project," an innovative production
line for flat wire coils
Production capacity: 5 times(compared to FY2020)

Plan to increase
production output

Investment to strengthen
facilities
Production efficiency
improvement

FY2022
FY2020

FY2026

190

Remove/relocate
aging
facilities

Investment in increased production
Introduction of high-efficiency
equipment

Sensing
IoT

New material
technology

Production
efficiency
CO2 reduction

150

100
Based on FY2020 production output of 100*

21

Overseas Business Strategy
GrowthExpanding net sales through local production for local consumption overseas and promoting global
expansion through export of optical fibers

About
2 times(100 million yen)

Precision
devicesWire
harnesses

Net sales ofoverseas business・Global expansion in close cooperation
with partners

・Strengthen overseas production
bases through partnerships andaccelerate shift to local
production for local consumption

・No.1 share of pressure roller market andexpansion of product line.

295
148
FY2020

Opticalfiber

FY2026 E

Ratio of domestic andoverseas sales
Overseas
9%・Expanding export sales of eRibbon® optical fibers for themarket of ultra-fine diameter highdensity optical cables for data
centers

Overseas
14%
Domestic

91%

FY2020

Domestic
86%

FY2026 E

Coppermaterials

・Improvement of oxygen freecopper production facilities
・Expand sales to local market

Powerequipment

・Become the No.1 electric
power equipment parts
manufacturer in China【Alliance Strategy】
・Collaboration with FUTONG GROUP CO., LTD. China to expand
copper business・Development of new markets for electric power equipment
components with SHOWA-TEBA CABLE ACCESSORIES CO., LTD.

22

Growth SWCC 2026

東証一部（5805）

Growth Transition to growth phase
Growth SWCC 2026
❶ Production capacity expansion:
12 billion yen

SWCC Smart Stream
Create new businesses:
Zero-trust security business❷Growth investment: 20 billion yen❸Research and development: 10 billion yen

Expansion into new markets: Automotive,
renewable energy, DX, etc.

Create new
businesses
Development into
new markets
Core businesses

FY2022Medium-term Management Plan
Change & Growth SWCC 2026

FY2026

FY2030

SWCC VISION 2030

24

Create New Businesses with Cloud-based Business Model
Net sales target
About
20 times

FY2020Zero-trust Security
Business
Revenue structure:
Subscription

FY2026 target

Zero-trust security withcloud-managed service provision

G SuiteSalesforce
Microsoft 365

ID Management
Service

Cloud ID
management
service＋Cloud-based

On-premise model
Revenue Structure: Sell-Off

Various SaaSSSO (Single Sign On) &Cloud Service
Connection

Cloud Service

HR System
AttendanceManagement

HR System

Product
Development

Users

Sales
Management

In-house system

25

Commercialization of SWCC Smart Stream through DX solutions
SWCC Smart Stream
On-Site Training System

On-Site Management
SystemVirtual field experience

Remote support with video, audio, andwork data

Product digitalmanagement

Data Digital Processing
Use of sensing technology

Linking customer and productdata

Early identification offield defects

Remote training
Safety and healthtraining

Package sales

Product quality control and history
Appropriate production and inventory
management
Process visualization and delivery datemanagement

Open innovation• Start-up companies (alliance, M&A)
• Openness, consortium

DX Solutions
DX Investment

DX
technology

AI

IoT・Data

AR・VR

5G・Wi-Fi6

CameraSensing

Simulation

•
•
•
•

Digital Innovation
SWCC's assets

Strong products and manufacturing• SICONEX®→Epoxy molding• Oxygen free copper → DIP• Copper and silver alloy → Casting
and cold processing

Existing
technology
Huge amount ofmaterial data

Diverse design
technologies

Manufacturing technology
and know-how

Human resources
with skills

Product line

Digital technology
Simulation technology
AI technology
Digital human resource
development

Development/ investment•••

Infrastructure construction
Sensor development
Automatic control androbotics

26

Sustainability Strategy

東証一部（5805）

Sustainability Strategy

E Environmental
Promoting the Green Plan 2050
Disclosure based on the TCFD framework

Objectives

TargetS Social

G Governance

Promote diverse human resources
Sustainable development

Further strengthen the Group's capabilities
Strengthen and thoroughly implement quality
control and auditing

TargetObjectives

TargetPromote diversity
management

Promotion of women’s advancement• Ratio of women in management
positions: 8%• Managers and above: 10%
Utilization of senior humanresources

Strengthen andrebuild the groupmanagement system

Finalize group reorganizationand streamline and increase
efficiency of management
structure

Unify systems and IT
systems within theGroup

Unify various systems such as
human resources and IT
systems within the GroupStrengthen thequality control
systemRestore trust by strengthening
quality control and thoroughauditing

Objectives

Response to climatechange risk

Promotion of TCFD-based
strategies, etc.

Prevention of global
warming

Reduce CO₂ emissions by
35% by FY2030 compared to
FY2013

Human resources
development

Enhancement of succession plan fornext-generation managers
Construction human resource
development using DX educational
tool

Effective use ofwater resources

Reduce water consumption by
50% by FY2030 compared to
FY2018Promotion of healthmanagement

Improve employee engagement byusing the health management
strategy map

28

Green Plan 2050 (Medium- to Long-term Environmental Plan)
We have established a long-term vision with the keyword of zero environmental impact in 2050.
To achieve this goal, we are promoting the reformation of our internal infrastructure and taking initiatives toachieve both environmental friendliness and economic efficiency.

29

Financial Strategy

東証一部（5805）

Medium-Term Cash Allocation(100 million yen)(100 million yen)

2017年度～2021年度
累計
FY2017-FY2021 Total
Operating
営業利益
incomeTax
362 税金69

Others
その他

66

Capital
設備投資
investment

Change inworking capital
運転資金増減Depreciation
and
減価償却費
amortization

Borrowing
repayment
借入返済

FCF
535

Operating
営業利益
income610 Tax
税金

184

Others
その他

9

224

103
14

Depreciation
and
減価償却費
amortization

310

Growthinvestment
成長投資

200

FCF
EBITDA30¥12 billion
of production capacity❶ Expansion
生産能力増強
120億円
of production bases, Strengthening and¥12.2
billion❷ Reorganization
生産拠点再編・強靭化、設備更新
122億円
renewalof facilities
and enhancement of ICT¥3.5
billion❸ Rationalization
合理化・ICT強化
35億円¥2 billion❹ Research
研究開発and development
20億円
¥1.3
billionof environmental impact, etc.
❺ Reduction
環境負荷低減他
13億円
Total:310億円¥31 billion
合計

Investment in new growth business areas:
20 billion yen (M&A, etc.)

Borrowing
repayment
借入返済

1

Dividends
配当107

FY2026 Shareholder return

108

Dividend per share: 120 yen or more
Dividend payout ratio: about 35％

231

117
535

Capital
設備投資
investment

Change inworking
capital
運転資金増減59

173
Dividends
配当

EBITDAFY2022-FY2026 Total
2022年度～2026年度
累計

841

841

31

Medium-term Management Plan Change ＆ Growth SWCC 2026

FY2020ResultFY2022Plan

FY2026
Target

FY2030VisionNet sales

Net sales

Net sales¥200 billion

Net sales¥215 billion¥220 billion

Operating income

Operating income

Operating income

Operating income¥7.6 billion¥10 billion¥15 billion¥20 billion

Operating income
marginOperating income
margin5% or more

Operating income
marginOperating income
margin¥161.7 billion

4.7%

7% or more

9% or more32

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)