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Supplementary Material for the Fiscal Year ended March 2024

May 13, 2024

TSE PRIME : 5805

Contents

1. FY2023 Overview of Financial Results

2. FY2024 Full Year Forecasts

2

1. FY2023 Overview of Financial Results

3

Overview of Financial Results for FY2023
Results: Sales and profits increased YoY, driven by the Energy and Infrastructure Business, despite theimpact of external factors.
• Energy and Infrastructure
Business

In construction-related products, we revised sales prices and improved profitability to capture stable demand.
In products for electric power infrastructure, demand related to special high voltage was firm, and the number of electric power
projects increased from the 2H.
Sales and profits increased YoY.

・ Electronic Equipment andComponents Business

Sales of high-performance products for EV recovered, but demand for industrial machinery in general-purpose products was
sluggish.
Sales and profits decreased YoY.

• Communication and Industrial
Devices BusinessIn telecommunications products, sales of construction-related products were firm, while sales of products for automotive
applications started full-scale operations. In industrial devices, demand for office products recovered in part, but demand forwire harnesses for domestic home appliances was sluggish.
Sales and profits decreased YoY.

Progress Rate to the Plan
(Net Sales/Operating Income/Ordinary Income/Net Income）(100 million yen)

2,000

2,139

1,500
1,000
500
0

Plan

Results(Reflects revised earnings forecast announced on February 2, 2024)

RecordOperating HighNet Sales

2,120* Both ordinary income and net income reached record highs

120
100
80
60
40
20
0

120

Plan

Income128

Results

120
100
80
60
40
20
0

118

Plan

Ordinary
IncomeRecordHigh

122

Results

Net Income
120
100
80
60
40
20
0

83

88

Plan

Results

4

FY2023 Consolidated Statements of Income
Sales and profits increased YoY. Profits exceeded the revised plan, with both operating income and ordinary income reaching record
highs. Plan to increase year-end dividends.
（Unit: 100 million yen）

FY2022
ActualFY2023
ActualYoY (％)Net Sales

2,091

2,139

2.3

Operating Income

105

Record High 128

22.4

Operating Income Margin（％）

5.0

6.0

+1.0ptOrdinary Income

104

Record High 122

17.5

Net income attributableto owners of parent

94

88

▲6.1

Dividend per share（Yen)

60

90

30

ROE (%)

15.0

12.3

▲2.7ptROIC (%)

7.1

8.3+1.2pt¥5 increase from
3Q results announcement

5FY2023 Change Factors (YoY)
Change factors for net sales+¥7.5 billion-¥4.4 billion

Effect of changes incopper prices-¥2.7 billion+¥4.1 billion
Energy andInfrastructure
Business

FY2022¥209.1 billion

Communication
and Industrial
devices Business+¥0.3 billion

Electronic
Equipment
andComponents
Business

Energy and Infrastructure Business: 2.4 billion yen
Electronic Equipment and Components Business : 1.5 billion yen

FY2023

OthersForeign exchange
impact: ¥0.8 billion¥213.9 billion

Communication and Industrial Devices Business: 0.2 billion yen+¥2.9 billion+¥0.2 billion

FY2023Structural reform-¥0.5 billion¥10.5 billion

Drop in pandemic
special demand-¥0.3 billion
Communication
Business
Restructuringcosts-¥1.1 billion+¥1.1 billion
Rise in raw
material andenergy costs, etc.

1. Net Sales
Despite sluggish demand forindustrial machinery andhome appliances, sales
increased YoY thanks to thestrong Energy andInfrastructure Business.
2. Operating Income

Change factors for operating income

FY2022[Change factors]

Selling price passthrough and cost
reduction¥12.8 billion
Effect of improving
product mix andprofitability

Despite a one-time loss from therestructuring of thetelecommunications business anda delay in making profits from the
ICT business, operating income
increased YoY due to various

efforts to improve
profitability.

6

FY2023 Results by Segment
Despite the impact of sluggish demand for industrial machinery and the economic downturn in China/Vietnam,
company-wide profits reached record highs due to the strong Energy and Infrastructure Business with its firmsales from construction and electric power-related projects.
FY2022
Actual（Unit: 100 million yen）

Energy and Infrastructure
Business

Net Sales
Operating Income
Operating income
margin (%)

Electronic Equipment andComponents Business

Net Sales
Operating Income
Operating income
margin (%)

Communication andIndustrial Devices Business

Net Sales
Operating Income
Operating income
margin (%)

FY2023
ActualYoY（％）

FY2023
ROIC
（％）

1,133
77
6.8

1,232
107
8.7

8.7
39.6
+1.9pt

12.3

581
17
2.9

553
16
2.9

▲4.9
▲3.7
+0.0pt

6.4

333
18
5.3

307
14
4.5

▲7.6
▲22.1
▲0.8pt4.47

FY2023 Results by Segment
Despite sluggish demand for products for industrial machinery and domestic home
appliances, strong construction and electric power-related sales drove overall
performance. Demand recovered in some EV related products.
Energy and Infrastructure
Business
Construction

Power infrastructure

Seismic isolation /Operating income

Others（(Unit: 100 million yen/%)

1,320
1,210
1,100
990
880
770
660
550
440
330
220
110
0

Electronic Equipment
and Components Business

1,133High performance productoxygen-free copper
General-purpose products

77
830
782(6.8)

294

336

57

66

FY2022

FY2023

254

300

52

0

（

333

581

400

100

Operating income）Operating income margin

400
553

500

200

Wire harnesses

Precision devices(Unit: 100 million yen/%)

107
700

(8.7)600

Communication cables）Operating income margin(Unit: 100 million yen/%)

1,232

276
FY2022

66

10

100

212
FY2023

307

300
20

17 274 16
200
(2.9)
(2.9)

00

Segment sales ratio
Other
2%

Communication and Industrial
Devices Business

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

FY2023 Results

158

18 168
14
(5.3)
(4.5)

103

83

71

57

FY2022

FY2023General-purpose
products
10%
Other High-performance
products
3%High performance
product oxygenfree copper
13%

Outer circle:
Segment
Inner circle:
Precision devices Sub-segment
2%

Construction
39%

Wire harnesses
Seismic isolation /4%
Others3%
Communication
cablesPower Infrastructure
8%
16%

8

FY2023 Results by Segment /Electronic Equipment and Components BusinessAlthough demand recovered for some products for EV, sales and profits decreased YoY due to sluggish demandfor products for industrial machinery.
Net Sales（Unit: 100 million yen）

High-performance products oxygen free copper

150

Other high-performance products

100

Operating income

50

General-purpose products

143 155 1380

152 144 140Q1

146 161 146

Q2

145

Q3

122 129（Unit: 100
million yen）

586

FY2022

FY2023

52% 302

Operating Income （Unit: 100 million yen）

0

6
Q1

5

6

7
4
Q2

44%

9%
8%

10
5

581

24

4

5

553

Q4
FY2021

830

4940% 235

53Q3
FY2021

1Q4

FY2022

254

50%

274

17

16

52
12%

47%

20

276

66

10

212
38%

2
FY2021

FY20220

FY2023

FY20239

FY2023 Results by Segment /Communication and Industrial Devices Business
Sales of construction-related products and communication cables for automotive applications were firm, but sales and profits
decreased YoY due to sluggish demand for wire harnesses for home appliances and restructuring expenses recorded in Q3.

Net Sales （Unit: 100 million yen）
90

Wire harness

Precision devices

Operating income

333

60
30

Communication cable

69

0

78

70

71

Q1

86

80

81

Q2

95

85

75

Q3

74

72

（Unit: 100
million300yen）

FY2021

FY2022

295
47%

144

Q4
FY2023

200

158
55%

49%

18

8

6
3
0

100

5
2
Q1

3

4

3
Q2

4

4

5

5

3

Q3

4
Q4

FY2021

FY2022

0

31%
36%

101

16%

50
FY2021

168

18

Operating Income （Unit: 100 million yen）
9

30

307

21%

14

103

71
FY2022

20

27%

83

18%

57

10

FY2023

FY2023100

FY2023 Balance Sheet (YoY)（Unit: 100 million yen）

End-FY2022

End-FY2023

Change[Trade receivables]

Trade receivables were reduced more than the increase in sales due tothe securitization of receivables, etc.

[Non-current assets]

Total assets
Trade receivables
Inventories
Non-current assets
Total liabilities
Trade payables
Interest-bearing debt
Total net assets
EquityEquity ratio (%)
DE ratio (%)

1,567
527
282
646

883
249
412

684

1,616
515
290
672

845
260
303

771

49
▲12
9
25
▲38
11
▲109

675
43.1

759
47.0

87
84
+3.9pt

61

40

▲21pt

Non-current assets increased mainly due to an increase in capital
expenditures for increased production of SICONEX® and an increase in
assets related to retirement benefits as a result of an increase in pension
assets, despite a decrease in investment securities due to sales inaccordance with the cross-shareholding policy.

[Interest-bearing debt]

Interest-bearing debt decreased due to a decrease in working capitalfrom liquidation of receivables and sales of investment securities.

[Equity ratio]

Equity ratio increased by 3.9pt compared to the end of the previous fiscal
year as the increase in shareholders' equity, including retained earnings,
was higher than the growth in total assets.

[DE ratio]

DE ratio decreased by 21pt from the end of the previous fiscal year due
to a decline in interest-bearing debt and an increase in shareholders'equity.

<Recognition of current issues and future measures>
Various measures have led to an improvement in thebalance sheet. We will continue to enhance thisimprovement by ensuring a proper level of inventory
and shortening the accounts receivable collection
period.

11

FY2023 Cash Flows and Capital Expenditures<Consolidated cash flow>
Operating
CF（Unit: 100
million yen）
250

Investment
CF

Financial Balance of cashCFand deposits

177

50

42

0
△ 50

△ 200

10
▲ 35

△ 100
△ 150

<+46>

FY2022

FY2023 E

Reduction of environmental
impact, etc.

1%

3%

188

<+33>

150
100

R&D

<+181><＋136>

Figures in < > indicates year
on-year increase/decrease
200

Free
CF

<Capital Expenditure>

40

6

72

▲1
▲ 156
<▲155>

Operating CF increased by ¥13.6 billion YoY mainly due to a reduction in working
capital. Investment CF increased by ¥4.6 billion YoY due to proceeds from sales ofinvestment securities.
Free CF increased by ¥18.1 billion YoY to ¥18.8 billion yen for the fiscal year underreview, greatly improving.

22%
Rationalization and
ICT enhancement
Reorganization andstrengthening ofproduction bases,
facility renewal

FY2023
Capital Expenditure

5.7 billion yen

Production Capacity
Expansion

55%

20%

Breakdown by Segment

Energy and Infrastructure Business: 2.6 billion yen
Electronic Equipment and Components Business : 1.4 billion yen
Communication and Industrial Devices Business: 1.1 billion yen
Others: 0.7 billion yen

122．FY2024 Forecasts

13

FY2024 Full-year Business Plan
Sales and profits are forecasted to increase due to sales growth resulting from investments to increase production of SICONEX ®
and a recovery in demand for high-performance products for EV.
Plan to increase the dividend by 20 yen from the previous fiscal year to 110 yen for the full year.

Net Sales(100 million yen)

Up 5.2%

Operating Income(100 million yen)

Up 5.3%
135

2,250
128

2,139

Ordinary Income

Recordprofits
expected

13.0 billion yen (YoY: 6.4% increase)
Recordprofits
expected

Net income attributable toowners of parent

9.0 billion yen (YoY: 1.8% increase)ROIC
8.7% (YoY: +0.4pt)
Dividend/Payout ratio

110 yen/36.1% (YoY: 20 yen increase)
FY2023 Result

FY2024 Plan

FY2023 Result

FY2024 Plan

Interim: 50 yen, Year-end: 60 yen
Total: 110 yen

14

FY2024 Full-year Change Factors
Change factors for net sales

FY2023

Effect of changes incopper prices

Energy andInfrastructure
Business+¥2.8 billion-¥3.7 billion

Electronic
Equipment
andComponents
Business+¥9.0 billion

Communication
and Industrial
devices Business

Others+¥2.3 billion+¥0.8 billion

Foreign exchange
impact: +¥0.2 billion

Electronic Equipment and Components Business¥213.9 billion

FY2024¥225.0 billion: 2.8 billion yen

Change factors for operating income
FY2023¥12.8 billion-¥0.5 billion+¥1.0 billion

Elimination of temporary
losses-¥2.2 billion +¥2.2 billion

Demandadjustments in theconstruction sector

Effect of improving
product mix andprofitability
Rise in material and Selling price passlogistics costs, etc. through and cost
reduction

FY2024+¥0.3 billion¥13.5 billion[Change factors]
1. Net Sales
Despite a projected temporary
decline in sales due to demand
adjustments in the construction andother sectors, sales are expected
to increase YoY due to a recovery
in demand for products for EVs.
2. Operating Income
Price pass-through and cost
reduction are expected to offset thehigher material and logistic costs.
Despite anticipated demand
adjustments in construction andother sectors, profits are expected
to increase YoY due to theelimination of temporary losses inthe telecommunications business,
product mix, and the effects ofimproved product mix and various
profitability improvements.

15

FY2024 Plan by Segment
Energy and Infrastructure Business
Construction
Seismic isolation/
Others(Unit: 100 million
1,300
yen, %)

1,200
1,100
1,000
900
800
700
600
500
400
300
200
100
0

Electric power infrastructure
Operating income （ ）Operating
income ratio

1,232

830

Electronic Equipment andComponents Business(Unit: 100 million
800
yen, %)

1,195

107
(8.7)

800

High-performance products
oxygen free copper
General-purpose products

102
(8.5)

600
500
400
300

336

340

66
FY202355
FY2024E

Copper price impact：ー
Positive factor●Contribution to sales from investment in increased productionof SICONEX®.
Negative factor●Demand adjustment in construction and other sectors.

200
100
0

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

25

670

700

66
212
FY2023

Communication cable
Precision devices

330

18(2.7)15100
240
FY2024E

10

400
300
200

5

100

0

0

Copper price impact：Net sales up 2.8 billion yen
Positive factor●Recovering demand for high-performance products for EV●Strong demand for products for heavy electrical equipment
Negative factor●Sluggish demand for products for industrial machinery

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

20

553

16
(2.9)
274

Communication and Industrial
Devices Business) Operating
income ratio

30
330

307

175

168

83

14
(4.5)

98

57

57

FY2023

FY2024E

22(6.7)20
100Copper price impact：ー
Positive factor●Growing demand for high-speed communication cables forautomotive applications●Elimination of one-time losses in the communications cable business
Negative factor●ー16

FY2024 Forecast for Cash Flows and Capital Expenditure Plan
<Consolidated CF>（Unit: 100
million yen） 250 Operating CF
200<YoY change>
150

Investment CFFree CF

100

△ 50
△ 100
△ 150
△ 200

<+27>
72

69

50
0

Financial CF
Cash andcash equivalents

188

177
143

10

<▲118><▲35><Capital Expenditure Plan>

▲ 73

<▲84>

99

<+114>

R&D

1%

7%

Rationalization and
ICT enhancement26%

FY2024E

Operating CF in FY2024 to decrease due to an increase in income tax
payment.
Investment CF to increase due to an increase in capital expenditures.

Production Capacity Expansion

FY2024
CapitalExpenditure
Plan

25%

¥9.0 billion
Reorganization and strengthening ofproduction bases, facility renewal

▲ 43
▲ 156

FY2023

Reduction of environmental impact, etc.

41%
Breakdown by Segment
Energy and Infrastructure Business: 3.0 billion yen
Electronic Equipment and Components Business: 2.1 billion yen
Communication and Industrial Devices Business: 1.2 billion yen
Others: 3.7 billion yen

17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.