Innovating new ideas today. Becoming the norms of tomorrow.

Financial Results for the Fiscal Year Ended March 31,
Medium-term Management Plan "Change & Growth SWCC 2026"Rolling Plan 2024
Presentation Materials
June 3, 2024

TSE PRIME: 5805

Today's Agenda and Speakers
1. Financial Summary, FY2024 Forecast

2. Medium-Term Rolling Plan 2024

3. Capital and Human Capital Strategies

Takayo Hasegawa

Tetsuo Komata

Toshiharu Kamijo

Executive President andRepresentative Director (CEO)Senior Executive Vice President andRepresentative Director (COO)

Managing Executive Officer2

１． Summary of FY2023 Financial Results and FY2024 Full-Year Earnings Forecast

3

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

4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.
（Unit: 100 million yen）

FY2022
ActualNet Sales

Energy and Infrastructure
Business

Operating Income
Operating income
margin (%)

Net Sales

Electronic Equipment andComponents Business

Operating Income
Operating income
margin (%)
Net Sales

Communication andIndustrial Devices Business

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
▲0.8pt4.4

5

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

6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 Business800

Other high-performance
products
Operating income （ ）Operating
income ratio(Unit: 100 million
800
yen, %)

1,195

107
(8.7)

High-performance products
oxygen free copper
General-purpose products

25

700

102
(8.5)

600
500
400
300
200

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.

100

Communication and Industrial
Devices Business

66

212

18
(2.7)15100
240

0FY2023

10

300
200

5

100

0

0

FY2024E

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

30

20

553
330

Wire harness
Operating income (

400

670

16
(2.9)
274

Communication cable
Precision devices

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7２．Medium-term Management Plan
“Change & Growth SWCC 2026” Rolling Plan 2024

8

SWCC VISION 2030: What We Want to Be by 2030
Based on the core technologies cultivated by SWCC
to date, we aim to create new value leading toa better future and further enhance corporate value.
Energy and infrastructure
Improving production efficiency
through DX
Making strategic products thedefault standard

Improving
economic value

Electrical equipment
and components
Shifting from wirematerials to high valueadded products

SWCC VISION 2030
It‘s not only with our traditional
cable and wire for infrastructure.
SWCC is committed to becoming
a value-creation company that
proposes solutions.

Comprehensive
electric wire
manufacturer
Electric wire
manufacturer

Organic growth &inorganic growth

Communication and industrial devices
Going beyond products for offices andconsumer electronics and entering new fields
such as products for ADAS

Improvingsocial value

Building social infrastructure that
supports people's lives
Contributing to labor saving andpower conservation

9１） Medium-Term Plan Rolling Targets and Business Strategies

10Changing Perception of the Business Environment
Expected Trends When the Medium-termManagement Plan Was Announced(as of November 2021)

Segment

Construction• Slight decrease in the medium- to long-term despite
redevelopment activities in the Tokyo metropolitan areaand expected demand ahead of the Osaka Expo

• Increased demand due to redevelopment activities in the Tokyo
metropolitan area
• Higher demand for new factory construction and the Osaka Expo
• Lengthened construction schedules due to labor shortages• Expansion of demand for offshore wind, etc.
• Expanded demand to upgrade aging equipment• Expanded demand to upgrade aging equipment• Growth in demand to expand power transmission and distribution
networks• Withdrawal of competitors• Expansion of demand for offshore wind, etc.
• Growth in demand for large-scale data centers• Growing demand in products for BEV• Despite a market recovery, demand for BEV slowed while
recovery of demand for HEV expanded• Widespread adoption of CASE
• Growth in demand for motors• Increase in telecommunications equipment and traffic• Increase in telecommunications equipment and traffic• Expansion of overseas telecom and datacom markets• Growth of the ADAS market• Global market expansion• Slight demand uptick in Japan• Slowing market expansion in China and Southeast Asia
• Greater demand for high-end home appliances• Diversification of commercial printing demand• Recovery of demand from the drop in COVID-19-related special
demand• Diversification of commercial printing demand

Energy andinfrastructure
Electricity

Electricalequipment andcomponents

Automotive

Communications
Communication andindustrial devices Home appliances

Office equipment

Rolling Plan 2024 Forecast(FY2024 to FY2026)

11

Rolling Plan 2024: Target Financial Figures
The new target figures represent upward revisions due to organic growth. We will aim to further expand theupside through inorganic growth.
Before Rolling Plan

Profitability

After Rolling Plan

FY2023

FY2026FY2026(Results)(Targets)(Targets)12.8 billion yen

15.0 billion yen

17.0 billion yen

ROE

12.3%

10% or more

14% or more

ROIC

8.3%

10% or more

10% or more

Dividends(dividend payout
ratio/DOE)

90 yen120 yen or more

150 yen or more

(30%/3.7%)(35%/not set)(35% or higher/4%
or higher)

D/E ratio

40%

50% or less

30–50%Net assets

77.1 billion yen

85.0 billion yen or more

93.0 billion yen

Operating income

Capital efficiency

Shareholder
returns

Stability

12Medium-term Management Plan:
Progress on KPIs and Key Points of the Rolling Plan
Operating income(100 million yen)

ROE

Pre-rolling target

Difference frompre-rolling targets

Results + Rollingplan targets+2.0 billion yen
170

15.0%

150
128
100

ROIC
Difference frompre-rolling targets

Difference frompre-rolling targets+4.0pt

0pt

14.0%

10.0%

8.3%

10.0%
7.0%

105

FY2022

10.0% 10.0%

12.3%

FY2023

FY2026FY2022

FY2023

FY20267.1%

FY2022

FY2023

FY2026

Achievements

Progress outpaced the targets set before therolling plan thanks to strongly performing
businesses and the effects of improved
earnings.

In addition to improving the profitability ofcapital through the promotion of ROICoriented management, ROE prog in part due
to the disposal of non-operating assets aspart of structural reforms.

By promoting business-specific ROIC, we
enhanced capital efficiency companywide,
leading to steady improvements to ROIC.

Rolling

We will upwardly revise the targets to be reachedby the final year of the plan through proactive
investment in growth-driver businesses and astrategy of expansion into new business fields
leveraging our core technologies.

Despite shareholders' equity continuing toaccumulate, we will maintain ROE at a highlevel that exceeds the cost of shareholders'equity by further expanding business earnings.

While continuing to invest in business growth,
we will expand ROIC by further expanding
business earnings and improving capitalefficiency.

13

Medium-term Management Plan:
Progress on KPIs and Key Points of the Rolling Plan
Dividends per share (yen)Pre-rolling target
Results + Rollingplan targets

D/E ratio

Net assets (100 million yen)

Difference frompre-rolling targets

Difference frompre-rolling targets

Difference frompre-rolling targets+30 yen-20.0-0pt

8.0 billion yen
930
850

150
771

70%
120

61%

684
50%

90
40%
50

60

FY2022

Achievements

Rolling

600
30-50%FY2023

FY2026FY2022

FY2023

FY2026FY2022

FY2023

FY2026

Achieved improvements to financial
soundness while increasing the dividend
payout ratio to 30% in FY2023.

Reduced interest-bearing debt and achieved
an improved financial position by expanding
shareholders' equity against a backdrop ofstrong business performance.

Enhanced shareholders' equity with a focus
on the accumulation of business earnings,
achieving stabilization of the financial base(end of FY2023: capital adequacy ratio of47%).

We will aim to further expand shareholder
return in balance with growth investments,
setting dividend target of 35% or more for thedividend payout ratio and 4% or higher for
DOE.

While maintaining a measure of financial
discipline, we will also make use of debtbased financing and work to reduce WACC.

To ensure sufficient funding capacity for
growth investments and diversify funding
methods, we will aim to achieve an external
credit rating of A- or higher and further
strengthen our financial base.

14

Rolling Plan 2024:
Business Investment Plan and Timing of Profit Contribution
We will introduce a Group-integrated system from FY2024 onwards and promote business streamlining. We will also strengthen investments
in human capital, including welfare facilities. In FY2026, we will expand capital investment in the Energy and Infrastructure Business.
Operating income target

Capital investment (after Rolling Plan)
Plan Before the Rolling Plan
Cumulative Investment
from FY2022 to FY2026

31.0 billion yen

Increased production andnew investments
Long-term investment /renewal investment

57

Investment in long-term renovation
and renewal:
12.4 billion yen

4313

2.0 billion yen

DX investment, etc.:

9.0 billion yen

250

15

24
7
6

31

170
23

4

39

128

2
16
31

Increased production andnew investments:
12.6 billion yen
R&D, etc.:

80

7
1
17

(100 million yen)

90

90

R&D

Plan After the Rolling Plan
Cumulative Investment
from FY2022 to FY2026

36.0 billion yen(100 million yen)

DX investment, etc.

37
29

29

FY2025

FY202618
11
FY2022

FY2023

FY2024FY2023

FY2026
Target after the
Rolling Plan

2030

15

Rolling Plan 2024: Strengthening Business Portfolio Management
In light of the current positionings on a sub-segment basis, we will strengthen business portfolio management
over the course of the Medium-term Management Plan up to FY2026.
Business portfolio as of FY2023
Big

New market andnew domain
businesses

Growth driver businesses[Power]Work to expand business through proactive growth investment instrategic products[Construction]
Enhance earning strength through DX promotion and pursue cash
cow business in greater depth[Industrial Devices and Communication]
Enhance growth potential and profitability while working to transform
into a growth driver business[High-performance Products]
Aim for business expansion in line with growth of the xEV market

Strengthen growth investments to accelerate growth

Improved productivity
through theenhancement of highvalue-added products
Growth potential

Business portfolio management over the course of
the Medium-term Management Plan

Electricity

Seismic isolation
Construction
Industrial devices

Identification ofproblem businesses

High-performance
products
Communications

Assess businessturnaround andbusiness retention
Small

Problembusinesses
Small

General purpose winding wires[Seismic Isolation]
Recognized as a problem business due to expected slowdown ingrowth potential and profitability

Creation of stable cashflowsCore businesses
ROIC spread by business

Assess business turnaround and business retention● Competitive advantages● Capital efficiency ● Growth potential● Our vision ● Synergy with other businesses

Big[General Purpose Winding Wires]
Recognized as a problem business due to expected earnings decline
due to intensifying competition

SWCC Group ROIC Calculation Formula
Corporate ROIC = Operating income after tax ÷ invested capital (shareholders' equity + interest-bearing debt) / Business-specific ROIC = operating income after tax ÷ invested capital (working capital + fixed assets)

16

Rolling Plan 2024: BD Strategy (New Business and M&A Activities, etc.)
We will strengthen our Business Development Strategy (inorganic growth), an upside element to the Rolling Plan 2024
targets (organic growth), aiming to contribute to profit between FY2026 and FY2030.
Operating Income (100 million yen)
Targets

BD Strategy by Segment: Priority Measures+ additional (Inorganic Growth)Target domains where SWCC can apply its strengths
and complement new domain technologies and its
customer baseEnergy andinfrastructure

Strengthening the solution
business
Smart Stream Business +Utilization of M&A

Electricalequipment andcomponents

Strengthening of downstream
strategy
Pursuing core technologies ingreater depth + Utilization of
M&A

Communicationand industrial
devices

Expansion of overseas business
areas
Enhancement of strategic
products + Utilization ofpartnerships+ additional

Inorganic growth
FY2026-FY2030•Total amount of growthinvestments
20.0 billion yen+128

+ additional

Organic growth250

FY2026170•Total amount ofbusiness investments
9.0 billion yen•Operating income
expected
17.0 billion yen

FY2023

FY2024FY2025

FY2026

FY203017

Rolling Plan 2024:
Growth Strategy for the Energy and Infrastructure Business (1)Market Forecast FY2024-FY2026• Increased demand due to redevelopment
activities in the Tokyo metropolitan area
• Higher demand for new factory
Construction construction and the Osaka Expo
• Lengthened construction schedules due tolabor shortages

Medium-term Rolling Plan Targets

Capital Investment Plan

Net sales and operating income (100 million yen)

45
40
35
30
25
20
15
10
5
0

107

1,232

Electricity• Expanded demand to upgrade aging
equipment• Growth in demand to expand powertransmission and distribution networks• Withdrawal of competitors• Expansion of demand for offshore wind, etc.
• Growth in demand for large-scale data
centers

Construction
related

830

112
102

1,240

1,195

Expected
price ofcopper
1,250 yen

Seismic isolationand other products

19

FY2024
Plan

336

340

360

66

55

60

FY2023Results

FY2024Plan-

FY2026
Target After the
Rolling Plan

ROIC

12.3%

12.5%

12.8%

WACC

4.5%

5.0%

5.3%

Growth Potential: Net Sales CAGR

Electricity• Maximize contributions from investments
in increased production of SICONEX®
connectors for high-voltage power cables• Promotion of human resources training• Promotion of solution-oriented
businesses (Smart Stream)Powerinfrastructure26

FY2025Plan

FY2026
Plan

Comparison of FY2023
and FY2026 Portfolios

Basic Strategy• Raise profitability with differentiatingproducts (high-end disaster resilient
Construction cables, workload-reducing cables)• Improve profitability by implementing

42

820

800

(100 million yen)

●FY2023●FY2026＋
Electricity

Seismic
isolation

Constructionーー+Profitability: ROIC Spread18

Rolling Plan 2024:
Growth Strategy for the Energy and Infrastructure Business(2)
Enhancement of our strategic products and solutions (SICONEX®/SICOPLUS®) to meet growing demandfor electric power driven by national policies
Profit expansion
Forecast of the domestic electricity market (based on SWCC research)

strategy 1

2014 onwards: Strengthening and taking action on aging (National Land Resilience Plan)
2020 onwards: private-sector renewable energy investment (publicly
solicited offshore wind power)(Million yen)
Aging distribution of transformers(66 kv - 500 kv, oil-filled)

6,000,000

2023 onwards: Development of
renewable energy transmission
networks
Forecasts of the data center
market2023-2028 CAGR 6.8%2023 onwards: Revenue Cap
systemTransformers [units]

5,000,000
Results of units
replaced or newly
installed in thepast year: approx.
260 units / year

Products• Made into the de facto standard• Enhancement of ultra-high voltage SICONEX®
• Consideration of further investments in increased
production

People• Construction human resources center• Expanded alliances with construction companies• Transitioning internally-trained employees to workon ultra-high voltage

2022 onwards: expansion of the data center market

Transformers coming
due for renewal during
our Medium-termManagement Plan

<Results of study into unevenly
distributed power supply scenario(45GW)>

6-7 trillion
yen

4,000,000

DX

3,000,000

Three measures for the electricity market• Educational support through use of AVR• Remote support, management solutions

2,000,000

SICONEX® Sales Growth Plan

1,000,000

Source: Organization for Cross-regional Coordination ofTransmission Operators, Japan (OCCTO),
Aggregation of Electricity Supply Plains for FY2024

02022 2023 2024 2025 2026 2027 2028
Source: Data Center Business Market Research Overview 2024
<Market Edition> Fuji Chimera Research Institute, Inc.
* 2023 figures are expected values, figures for 2024 andbeyond are forecasts.

FY2030240

Source: Organization for Cross-regional Coordination of Transmission
Operators, Japan (OCCTO) Long-term Policy for Wide-area Grid
System (Master Plan for Wide-area Interconnection Grid)<Supplement (Reference Edition)>

FY2026200

FY2023-FY2026 Transformer market CAGR: 11%, SWCC CAGR: 18% *Based on SWCC researchElectric power

SWCC's company demand
sectorshare Privatecompany demand

FY2023

FY2024FY2026

FY2030

51%

58%

71%

88%

93%

93%

94%

95%

FY2023100

Construction Personnel Plan

FY2023 FY2024
100
115

FY2030130
FY2026125

FY2024135* When FY2023 results are indexed to 100

Cooperation with nationwide
construction companies* When FY2023 results are indexed to 100

19Rolling Plan 2024:
Growth Strategy for the Energy and Infrastructure Business (3)Profit expansion
strategy 2

Roll out of Smart Stream to electric power companies(promotion of the solution business)

Challenges facing theelectric power industry:⚫Building resilience⚫Extending and developing
wide-area power transmission
and distribution equipment⚫Aging equipment⚫Improving productivity andensuring safety

Ensuring construction supply capabilities

AI (image /forecasting)

Providing solutions offering safety and peace of mind
(technical skills transfer, improved efficiency,
elimination of occupational accidents)

Preventing incidents

Upside plan underthe BD strategy

Reducing labor required for equipment maintenanceand streamlining equipment management

Remote support andmanagement

Image
AI

AVR

Developing a lineup of solutions
AVR

Development of a solution business

Sensing
Sensing

Predictive
AI

Acquisition of
resources and newtechnologies

RemotesupportExpandingthe SICONEX market
Business of selling goods(Base load)

20

Rolling Plan 2024:
Growth Strategy for the Electric Equipment and Components Business (1)Market Forecast FY2024-FY2026
Highperformance
products

Medium-term Rolling Plan Targets
Net sales and operating income (100 million yen)

• Expanding recovery of demand for
HEV despite a slowdown in BEV
adoption• Widespread adoption of CASE
• Growth in demand for motors

16

18

730

Expected
price ofcopper
1,250 yen

16
14

15
10

670

8

5
553
Highperformance
products
Oxygen-freecopperOther highperformance
products
Generalpurposeproducts

350

0

330

FY2024
Plan

274
140

100
66

212

FY2023Results240

FY2024
Plan

240

-

FY2026
Target After the
Rolling Plan

ROIC

6.4%

6.8%

8.6%

WACC

4.2%

4.6%

4.6%

FY2025Plan

FY2026
Plan

Comparison of FY2023
and FY2026 Portfolios
Growth Potential: Net Sales CAGR

Highperformance
products

20

26

Basic Strategy• Building a flexible system for BEV
and HEV adoption• Development and manufacturing of
new high value-added products• Launch of green vehicle winding
wire (CO2 reduction)• Increased production of heater wires• Development of probe pins forsemiconductors• Joint development with Tohoku
University• Structural reforms(Development of an integrated
production system for heater wires:
FY2025 onwards)

Capital Investment Plan (100 million yen)

●FY2023●FY2026＋
High-performance
productsーGeneralpurposewinding wiresー+Profitability: ROIC Spread26

Rolling Plan 2024:
Growth Strategy for the Electric Equipment and Components Business (2)We will shift from an upstream to downstream strategy, increasing profit by shifting positioning to highvalue-added products that take advantage of our strategic products and core technologies.
Areas of Focus

Our Strengths
Wire rods

MiDIP®

Products(Products and CoreTechnologies)

Insulation
technology

Copperalloys

Probe pins

Fire resistantbus bars

Power supply
coilsHigh heat resistance, high voltage, highefficiency

High flexibility, highdurability

High conductivity,
high durability

High voltage,
workabilityHighefficiency

Conductors for automotive motors

Heater wires

Semiconductor
inspection tools

Electric vehicles

Contactless
power supply

High-frequency
technology
Processing
technology

Flat winding
wires

Semi-finished goods

Use

Copper alloys

MiDIP®

Winding wires

Plan forFutureProfitExpansion● Flat winding wire: increased production plan
● Green vehicle winding wire: (material, fuel, equipment CO2 reduction)● Heater wire: increased production plan
● Probe pins for semiconductors: Launch of wire in FY2023, mass production starting FY2026● Fire resistant bus bar: Developed by applying the Group's expertise in fire resistance, expected to enter mass
production in 2027
● Contactless power transfer: Provided for Japan's first public road demonstration
testing in 2023, aiming for commercialization in 2030

Profit expansion
22

Rolling Plan 2024:
Growth Strategy for the Electric Equipment and Components Business (3)Profit expansion
strategy 1

Green vehicle winding wire

Begin sales of green vehicle winding wire from2025 against the backdrop of demand for low
carbon materials from customers
2030
2025

2024

Profit expansion
strategy 2

Expansion of the alloy wire domain:
collaborative
research with Tohoku University
Anticipate global expansionof demand and strengthen
investment in increased
production and enhance lineup

Enhance the lineupof heater wires as adownstream
strategy

Expand sale of green vehicle
winding wire

Sales launch of green
vehicle winding wire

Scope 3 (Cat. 1)
For amount of procured
materials
reduction of up to 50%*

Increased productionof heater wires

Profit expansion
strategy 3

Consolidate the process from basic research at
Tohoku University to product development andmanufacturing at SWCC in the Sendai area to develop
next-generation technologies and products.

Development and mass
production of probe pins

Target high revenue markets utilizing SWCC's unique characteristics(high conductivity and hardness)<Roadmap>
Application of green energy
First introduction in Japan, production
using high-efficiency equipment

Scope 1 + Scope 2
80% reduction for amount of fueland electricity consumption*

FY2026 target
Development of mass
production of pins

* Limited to automotive winding wire

2023

Production using
existing methods

Have greenhouse gas emissions(Scope 1 + Scope 2) verified by athird party organization

Semiconductor
inspection probe
Advanced logic / special
automotive applications

FY2024-FY2025 target
Pin commercialization andacquisition of customers
FY2023 result
Launch of wire for pins

Upside plan underthe BD strategy

Incorporate downstream
processes to expand
profit23

Rolling Plan 2024:
Growth Strategy for the Communication and Industrial Devices Business (1)Market Forecast FY2024-FY2026

Medium-term Rolling Plan Targets• Increase in telecommunications
equipment and traffic
Communications • Expansion of overseas telecomand datacom markets• Growth of the ADAS market

Net sales and operating income (100 million yen)

• Slight uptick in Japanese home
appliance demand• Slowing home appliance market
expansion in China andIndustrial devices Southeast Asia
• Greater demand for high-end
home appliances• Diversification of commercial
printing demand

Capital Investment Plan (100 million yen)
12

35
22
360

14
307
Communication
cables 168

8
Expected
price ofcopper
1,250 yen

Results

6

6

FY2025Plan

FY2026Plan

40
FY2024
Plan

185
175

Comparison of FY2023 andFY2026 Portfolios
115

98

60

57
FY2024Plan-

FY2026
Target After the
Rolling Plan

ROIC

4.4%

7.2%

11.0%

WACC

5.6%

6.0%

5.9%

Growth Potential: Net Sales CAGR

• Capturing of robust demand for
Wire harnesses 83
office LAN• Investment in increased
Communications production of automotive highPrecision devices 57
speed communication cables• Development of new partners
for e-Ribbon®
FY20236

2

330

Basic Strategy• Wire harnesses and precision
devicesIndustrial devices • Expansion of (roller) businessdomain10

10●FY2023●FY2026＋

Industrial
devices

Communicationsーー+Profitability: ROIC Spread24

Rolling Plan 2024:
Growth Strategy for the Communication and Industrial Devices Business (2)Profit expansion
strategy 1

Expanded entry into the automotive
high-speed communication market

Profit expansion
strategy 2

Automotive camera market
TargetMarkets

Winning
Strategy
Story

In the realization of advanced driver assistance systems(ADAS) and autonomous driving systems (ADS), viewing
cameras and sensing cameras contribute to improved
safety and the widespread adoption of autonomous
driving technologies

Telecom and datacom markets
TargetMarkets

Partner strategy with Tier 1 partners (domestic
and overseas)
Collaboration with leading Tier 1 partners
Enhanced lineup of automotive high-speed transmission
cable types
Strategy for high added value by
incorporating extra features in cables

Mobility<Product Superiority>• Achieves high-speed data transmission with stabletransmission and high frequencies with low latency
and noise resistance for cameras with increasingly highresolutions and enhanced functionality• Ensures advanced automotive environmental performance(oil and chemical resistance, abrasion resistance, temperature
resistance, etc.)

e-Ribbon® overseas partnership strategy

Winning
Strategy
Story

North America: Increased demand due to booming FTTx and DC
markets and compliance with Build America, Buy
America (BABA) requirements.
Europe:Solid demand will continue despite slowdown of FTTx
market growth
Asia:
Expanded demand toward the Taiwan FTTx market andincreased demand due to the booming Asia DC market

Overseas partnership strategy utilizing technologicaladvantages
We will utilize our technological capabilities that make us one of only
five companies in the world capable of mass production and roll out
a local-production-for-local-consumption strategy through overseas
partnerships.

<Product Superiority>• Outer diameter reduced by up to 34%• Weight reduced by up to 40%• Capable of simultaneousadhesive bonding with flexible
ribbons

World
class

Upside plan underthe BD strategy

World
class

Building overseas
partnerships that maximize
technological advantages

25

Rolling Plan 2024:
Growth Strategy for the Communication and Industrial Devices Business (3)Profit expansion
strategy 3

Strengthened competitiveness and multifaceted expansion
through overseas partnerships for wire harnesses

To DateSpecialization in products for highgrade home appliances producedby leading Japanese manufacturers

Future Growth Strategy

Good
relationships
with Japanesecompanies

Strengthening competitiveness through Chinese joint
venture company established with motor manufacturer

Enhanced competitiveness through cost
reductions and quality improvements(High-grade home appliances)

Promotion of stable supply through thedecentralization of sites(2024 launch)

For high-end home appliances
For regular home appliances

JIAXING

Progress made in structural reforms(1) Diversification of production
sites(Two sites in China, one site in Vietnam)(2) Promoting local procurement,
and local production for local
consumption(FY2022 Chinese site procurement rate: 74%)

DONGGUAN

Multi-faceted expansion through a Chinese joint
venture company established with an automotive
components company and autonomous driving
software development company

HUNG YEN

Rapid entry into the ADAS-related component
market through collaboration with a company thatdevelops automotive sensors and radars(2024 launch)

For autonomous driving

26２） Capital & Financial Strategy

27

Approach to Financial KPIs
FY2026 Targets
Toward a market capitalizationof 150 billion yen
Rating of A- or higher

Improved
corporate
value andshareholder
value
Total shareholder return

TSR expansion• Increase in the shareprice• Increased dividends

Expanded equity spread• ROE of 14% or more

• EBITDA margin of 9％ or above• Improved CCC of 80 days or less* Cost of shareholders' equity assumed to be
9% or lower

Improved asset
efficiency
Enhanced shareholder
returns• Dividend payout ratio of 35%
or moreandOutperforming TOPIX(including dividends)

Improved cash flow

• DOE of 4% or more

• ROIC of 10% or more
• Business portfolio management

Optimized cost of capital• D/E ratio between 30% and 50%• Capital adequacy ratio of around50%• WACC controlled in the 6% range

28

Cash Allocation in the Rolling Plan
We have improved the ability to generate cash over the past two years by improving capital efficiency throughenhanced earning capabilities, a reduction in working capital and the sale of non-operating assets. Therefore in the rollingplan, we will work to invest in business expansion that leads to future cash flow and enhance shareholder return.
After the Rolling Plan
(Cumulative Amount from FY2022 to FY2026)

Before the Rolling Plan
(Cumulative Amount from FY2022 to FY2026)
Cash inflows

Cash outflows

Cash inflows

Cash outflows
Capital investment
Machinery and equipment,
etc.:
25.0 billion yen

Cash flows fromoperating activities
61.7 billion yen

Business investment
51.0 billion yen

Cash flows fromoperating activities
69.0 billion yen

Business investment,
etc.
62.0 billion yen+

Human capital investment
Welfare facilities, etc.:
2.2 billion yen
DX investment, etc.:
6.8 billion yen
BD investment

Shareholder returns
10.7 billion yen

FY2026 shareholder returns
Dividend payout ratio of
approx. 35%
Dividend per share of
120 yen or more

M&A activities, etc.:
20.0 billion yen+

Procurement ofinterest-bearing debt
2.0 billion yen+
Sale of crossshareholdings
Real estate, etc.

Sale ofnon-operating assets
11.5 billion yen

Other (increase in cash on
hand, etc.)
6.5 billion yen

Shareholder returns
20.5 billion yen

Shareholder returns policy
Dividend payout ratio of
35% or moreand
DOE of4% or more

29

Shareholder returns
In addition to dividends based on a dividend payout ratio of at least 35% and DOE (dividend on equity) of atleast 4%, we will consider the flexible acquisition of treasury stock, comprehensively taking into accountfinancing needs for growth investment and other factors.
Trend in dividends per share (yen) andthe dividend payout ratio
Shareholder return policy
36.1%
30.3%

Dividend payout ratio of at least 35%
and DOE of at least 4%

150
16.0%

Taking into account the situation with accumulating
shareholders' equity, we have set a new DOE(dividend payments divided by shareholders' equity)
as the minimum threshold for dividends, to ensurethat a certain level of return is provided toshareholders even if a downturn in earnings has
occurred.

35.0%

19.1%

110

12.0%

90
50

60

20
FY2020

FY2021

FY2022

FY2023

FY2024Plan-

FY2026
Rolling Plan
Targets37３） Human Capital Management

31Key Measures to Transform Our Corporate Culture
The corporate culture we envision:
A culture that promotes change & growth to produce further value creation

Next-generation manager succession plan
We aim to ensure sustainable growth while maintaining anddeveloping a solid management structure from a medium- tolong-term perspective.
1. Clarification of the qualities
required to be a corporate
officer
Selections are made basedon five perspectives• Mindset• Relationship building• Vision• Knowledge and skills• Decisiveness and ability totake action

2. Next-generation manager
selection process
Candidates are selected by the CEO withfinal decisions being made by the
Nomination and Compensation
Committee.

3. Next-generation manager
training process
Company directors serve as instructors
and provide seminars to junior employeesthat have been recommended by theheads of business segments and selectedby the CEO.

Internal venture scheme
We strive to build systems enabling employees to speedily turn theirideas into business endeavors, creating new business models notpresent in our existing businesses.

Kaeruya: The industry's first cable e-commerce site
• The project was started based on the ideathat a service adapted to an increasingly
digital age would be needed in contrast to
traditional business practices whereorders are often placed by telephone or
fax machine.
• By developing a platform for the Group's
products in a digital world and building
new sales methods, we aim to analyze
digitalized customer needs and provide
new services.

43

Human Capital Management:
Shaping an Organizational Culture in Which People ShineThree Pillars of Our Human
Resources Strategy

Issue

Direction of actions

OutcomeRenewing theorganizational
culture• Promoting diversity• Improving engagement• Renewing the culture (climate, organizational
culture)Improving psychological safety
Eliminating the bias toward maintaining thestatus quo
Fostering a culture that supports challenges

A mindset that realizes
changeTaking on new challenges

Creatingmechanisms toinvest inhuman capital• Revisions to hiring, assignment and transfer,
evaluation, compensation, training andresignation processes• Personnel shortages → labor saving andimprovements to productivity per person• Sharing value between employees and thecompany (revitalizing shareholding
associations)

Producing innovation
through newchallenges

Sustainable growth

Transforming
personnel
departments• Reactive  Proactive• Labor and operational management 
strategic HR• Short-term perspective  Long-term
perspective

Improving value
creation capabilities
through individual andorganizational growthEndless reforms

42New Executive Officer System
Building a new system to swiftly solve the Company's issues and boost earning capabilities in order to achieve
the Medium-term Management Plan
Takayo Hasegawa

Tetsuo Komata

Executive President and Representative Director (CEO)Supervising Group Management, in charge of quality supervision

Senior Executive Vice President and Representative Director (COO)
In charge of Group management strategy, BD strategy, IR strategy,
and Domestic and Overseas Group Company Management

Leading the Group to becoming a company thatcreates even more value
Yukio Kawase
Senior Executive Officer
Chief of Energy and Infrastructure
Business Segment
President and Representative Directorof Showa Furukawa Cable CO., LTD.

Further strengthening growth
driver businesses

Speeding up business management

Takashi Yamamura

Nobutaka Imai

Toshiharu Kamijo

Senior Executive Officer
In charge of sales
coordination andmaterial procurement

Managing Executive Officer
In charge of finance,accounting, auditing andshared services

Managing Executive Officer
In charge of capital strategy,
personnel affairs, human capital
strategy, general affairs, legal affairs
and risk management

Strengthening
sales structure

Streamlining the operationof head office functions

Bolstering our capital and humancapital strategies

Kazuhiko Inoue

Kiyoshi Otake

Shigeru Toyama

Nobuyuki Sema

Yoshiteru Akimoto

Yuichi Morishita

Executive Officer
Chief of the Communication andIndustrial Devices Business Segment
President and Representative
Director of FUJI ELECTRIC CABLE
CO., LTD.

Executive Officer
Assistant Chief of theCommunication andIndustrial Devices Business
Segment, in charge ofindustrial devices

Executive Officer
Assistant Chief of the Energy andInfrastructure Business Segment,in charge of the Electricity
Business

Executive Officer
In charge of Smart
Stream Business andElectric Power System
Strategy

Executive Officer
Chief of Electrical Equipment andComponents Business Segment

Executive Officer
In charge of technology
planning, research anddevelopment, andintellectual property
strategy

Rebuilding thecommunication business

Expanding the industrial Strengthening the electric
Promoting the solution Improving earnings capabilities Bolstering R&D and IP
device businesspower infrastructure business businessthrough downstream strategy strategy
Expected structure following approval at the ordinary general meeting of shareholders to be held on June 25, 2024

44

Designing an Officer Compensation System Cognizantof the Link to Improved Corporate Value (FY2024)
Compensation and decision-making process that
ensures transparency and objectivity
The Board of Directors determines officer compensation,
taking into account the deliberations and reports of theNomination and Compensation Committee, a nonstatutory committee whose members consist entirely of
independent outside directors.

Selecting indicators that are strongly linked withenhancing corporate value
Financial (Company Performance)• Operating income• ROIC

Performance-linked
compensation
23%
Fixed
compensation
66%

Restricted stockcompensation
11%

Future direction

Payment rate

FY2024 compensation ratio

FY2023 compensation ratio

Performance-linked
compensation
25%
Fixed
compensation
61%• Renewable energy adoption rate
• Greenhouse gas emissions• Frequency rate of lost-time injuries• Engagement score

Dynamic compensation system(company performance)

Expanding the performance-linked ratio
Expanding the performance-linked compensation ratio andbeing aware of the link with shareholder value

Non-financial (ESG)150％

Incentive curve(Fluctuating between 0% and 150%)

100%
Restricted stockcompensation
14%

Toward compensation levels and a system design(performance-linked ratio, indicators, etc.) ensuringthat the human resources needed to achieve thelong-term vision can be secured and retained

50%0％Target achievement rate

35

３．Appendix

36Formulating Rolling Plan 2024 under the Medium-term Management
Plan

Takayo Hasegawa,
Executive President and Representative Director (CEO)The first half of our Medium-term Management
Plan that began in 2022 has ended. Looking backon the past two years, we have made steadyprogress towards our stated KPIs. We havestrengthened the earning capabilities of our corebusinesses by investing in increased production ofstrategic products and enhancing the profitability of
our cash cow business through digitaltransformation (DX). Additionally, we haveachieved some results in creating new businesses,
such as the launch of the Smart Stream business.
However, issues remain in the new development of
our overseas business due to delays to our planscaused by the COVID-19 pandemic andgeopolitical risks.
Meanwhile, the business environment has
undergone considerable change since the current
Medium-term Management Plan was drafted in
November 2021. Under this rolling plan, we willtake these changes into account as we revise ourbusiness and investment strategies, make further
investments in growth drivers, and draw up

measures aimed at portfolio transformation. While
we have made an upward revision to operating
income with a new target of 17 billion yen to beachieved through organic growth, we will
implement measures to further increase this figure
through investment that leads from stability to
growth, and hope to make this a big step bringing
us closer to our 2030 vision.
More specifically, we will further refine ROIC
management, strengthen our ability to generatecash flow from business operations, and employ
enhanced capital strategy to optimize the cost ofcapital and enhance shareholder return. In addition
to enhancing our human capital strategy without
backtracking on the reforms we have made to date,
we will also focus on business development (BD)strategy to broaden the areas where we operate
as an upside element (inorganic) to the latest
target figures.
Stay tuned for this new beginning of the SWCC
Group's Medium-term Management Plan: Change& Growth SWCC 2026 Rolling Plan 2024.

37

Senior Executive Vice President (COO) Profile
2024

SWCC Purpose
Innovating new ideas today.

2023

Becoming the norms of tomorrow.

2022
2018–2023

2020

ROIC: 5.6→8.3%
PBR: 0.6→1.5 times

2019

Total Market Value: 20→115 billion yen

2018
Head Office
2017
Division

Tetsuo Komata
Senior Executive Vice President andRepresentative Director (COO)
In charge of Group management strategy, BD

2011

strategy, IR strategy, and Domestic and Overseas

Appointed as Senior Executive Vice
President andRepresentative Director (COO)

Changed trade name and became a businesscorporation, formulated purpose

Introduced business portfolio management
Led the establishment of SFCC

Executive Officer in charge of IR

General Manager of Group Corporate Planning
Department, Executive Officer
Promoted structural reform of the Group
General Manager of Management Strategy Office
Oversaw business planning/performance management, Energy Systems andCommunication Systems

General Manager of Production Control Department, Communication Systems Unit

Group Company Management

Oversaw business planning/performance management, Communication Systems

2006

Domestic Business
2005
Division

2001
Stationed in
2000
China

General Manager of Manufacturing Department, Optical Device Unit
Promoted the restructuring of optical device business

General Manager of Hangzhou Futong Showa Optical Communication Products Co., Ltd.
Established a new joint venture company for the optical device business

General Manager of Optical Devices Department, Hangzhou Futong Showa Optical Communication Co., Ltd.
In charge of establishing a plant to increase optical device production at a joint venture company

1989

Graduated from Shibaura Institute of Technology, Metallurgical Engineering Department, Engineering Faculty

Joined Showa Electric Wire & Cable Co., LTD.

38

Executive Corporate Officer Profile
2024

SWCC Purpose
2023

Innovating new ideas today.

Developed financial/capital strategy

Becoming the norms of tomorrow.

2022

Executive Officer and General Manager of Corporate
Administration Division
Established new corporate governance structure
General Manager of Risk Management Office andAuditor of Showa Furukawa Cable Co.,Ltd.

SWCC

2018–2023
ROIC: 5.6→8.3%

2021

PBR: 0.6→1.5 times

2020

Total Market Value: 20→115 billion yen

2017Toshiharu Kamijo

2015

Managing Executive Officer
In charge of capital strategy, personnel

2013

affairs, legal affairs and risk management

Joined the Company, established risk-management system

General Manager of Resona Bank's International Business Department
Implemented acquisition/alliance strategies for foreign banks

General Manager of Compliance Division, Resona Holdings,
Inc./Resona Bank, LimitedBanksaffairs, human capital strategy, general

Appointed as Managing Executive
Officer
Executive Officer in charge of Capital Strategy

General Manager of Division for Individuals Oversaw Division for
Individuals and promoted asset management business

US Certified Public Accountant

2003(Washington State)

1998
1996
1991
1988

Deputy General Manager of Corporate Affairs
Department, Saitama Resona Bank, Limited

Senior Research Officer, Human Resources
Planning Group, Human Resources Department

Planned corporate strategy, promoted
corporate transactions

Planned a human resources system

Research Officer, International Planning Established network of overseas offices
Group, International Department

Studied in the US: NYU Stern School of Business (MBA)

Graduated from Keio University Faculty of Economics and joined Saitama Bank (currently Resona Group)39https://www.swcc.co.jp
The forward-looking statements in this presentation are based on information available at the time of publication and involve
potential risks and uncertainties.
Therefore, please be aware that a variety of factors could cause the actual results to differ materially from those projected in thestatements.
Such factors that may affect actual results include economic conditions, demand trends, and fluctuations in raw material prices andexchange rates.
Factors that may affect business performance include, but are not limited to, the above.