Innovating new ideas today. Becoming the norms of tomorrow.

Q1 FY2023 Small Meeting
September 4, 2023

TSE PRIME : 5805

Speakers

President and Representative Director,
Chairman of the Board of Directors
Group CEOManaging Executive
Officer

Takayo Hasegawa

Tetsuo Komata

Managing Executive Officer
Chief of Energy and Infrastructure
Business Segment

Managing Executive Officer
Chief of Electrical Equipment andComponents Business Segment

Managing Executive Officer
Chief of Communication and Industrial
Devices Business Segment

Yukio Kawase

Takashi Yamamura

Yoshinao Kodama
2

Contents

１． FY2023 1Q Results Summary and Full Year Plan

２．Key points for rolling mid-term plan by business segment

3１．FY2023 1Q Results Summary and Full Year Plan

4

FY 2023 Q1 Financial Results Overview

Management
Environment⚫

The economy has normalized due to the relaxation of movement restrictions due to COVID-19.

⚫

Raw material and energy prices soared due to the protracted situation in Russia and Ukraine and the weakening yen.

⚫

In the automotive-related market, the impact of automobile production cutbacks due to semiconductor shortages is recovering.

⚫

In the electric wire industry, overall demand for electric wires increased slightly.

⚫

The average domestic quotation price for copper declined slightly from the same quarter of the previous year.

The business plan for the current fiscal year is generally weighted toward the second half of the year. Q1 results showed sales were down YoY.
[Status of Major Business Fields]

Net sales

Energy Infrastructure: Strong construction-related business compensates for the second-half bias in electric power construction.
Automobile: High-performance products for xEVs continue to be in an adjustment phase, but have bottomed out.
Industrial Devices: Demand is sluggish due to partial drop in pandemic special demand.

OperatingprofitElectric Power Infrastructure progressed as initially expected, with a bias toward the second half of the year. It was supported byconstruction-related and communication cables.
Profit decreased from the same period of the previous year.

5Key Points of the Financial Results for Q1Q1 YoY Change

Q1 Progress rate

Figures for the current fiscal year are assumed to beweighted toward the H2 (around 30% in the H1 andaround 70% in the H2).

Net sales(Unit: 100 million yen)

Down
3.2%

50

The progress rate of sales was in line with the average, but
operating profit was lower than usual due to theconcentration of power construction projects in the H2.

Operating profit(Unit: 100
million yen)

Full-year
Plan

FY19-22
Avg.
progressrate

Net sales

2,150

23.2%

22.5%

Operatingprofit

107

18.4%

15.0%

40

30

500

484

Down
25.6%

20

10

Q1
Progress
rate

22

16

0
FY2022 Q1

FY2023 Q1

FY2022 Q1

FY2023 Q1

6

FY2023 Full-year Forecasts
Plan to capture demand in the H2 and increase sales and profits through various measures.
Dividends are planned to be increased by paying an interim dividend.

Net sales(Unit: 100 million yen)
2300

(Unit: 100 million yen)
110

2.8%
increase

2,150
2100

Operating profit

2,091

Ordinary profit

10.6 billion yen (YoY: 2.0% increase)

2.2%
increase

107
105

105

Net income attributableto owners of parent

100
1900

7.0 billion yen (YoY: 25.6% decrease)

95
90

Dividend/
Payout ratio

1700
85

75 yen/32% (YoY: 15 yen increase)
1500

80

FY2022 Actual FY2023 Plan

FY2022 Actual FY2023 Plan

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

7FY2023 Recognition of Business Environment
Progress in the first half is expected to be slower than usual. In the second half of the year, we expect the highest full-year profits due to strong
demand in the electric power and communications sectors, recovery of products for xEVs, and full-fledged launch of new businesses.

Forecast

Operating profit

H1

H2

3.5 billion yen

7.2 billion yen(Q1 results: 1.6 billion yen)
Dividend

Construction

35 yenAverage for time of year

40 yenAverage for time of year

Recognition ofBusiness Environment

Concentration of electric power projects with strong demand,

Electric power

H2 bias in power construction

such as renewable energy system development
Sales expansion through increased production of SICONEX®

Automobile

Demand for high-performance products for xEVs is expected torecover in Q2 and beyond, despite an adjustment phase in Q1.

Recovery in demand for high-performance products for xEVs

Drop in pandemic special demand in the industrial device
business

Recovery in demand for Industrial Devices BusinessCommunication

Demand for high-grade LAN expands; FLANTEC® shipments forautomotive applications begin.

Expansion of overseas sales of e-Ribbon® and sales of
FLANTEC® for automotive applications

New Business(ICT)

Average for time of year

ICT in full swing

Industrial
Devices8

２．Key points for rolling mid-term plan by business segment

9

Final year target of the medium-term management plan
Sales and operating income composition ratio / Financial strategy＜ Composition ratio ＞
Energy & Infrastructure BusinessElectrical Equipment andComponents Business

Operating income
8 billion yen

Operating income
2.6 billion yen

29％＜ Financial strategy ＞

17％

53％ 46％

Operating income

30％ 15 billion yen

Growth Investment
Growth investment 20 billion yen
Human capital investment
R&D Expenditure Expansion

Shareholder Returns
To achieve an annual
dividend of at least 120
yen per share by the year
ending March 31, 2027

Improvement of Financial Base and Profitability

Operating income
20％
4.5 billion yen
Communication andIndustrial Devices Business

ROE of 10% or more,
Market capitalization of 100 billion yen or
more, P/B ratio of 1x or more

Cash allocation

Targets for FY2026
Net Sales
215 billion yen

Increase in corporate value

Outside: Sales
Inside: Operating income

Improve capital efficiency
Deepen ROIC/CF
management

Ensure financial soundness
Optimal capital structure,obtaining credit ratings

10Energy & Infrastructure Business

11Energy & Infrastructure Business

FY2023 Q1 Segment Results
Construction
Seismic isolation/others

1,135
1,100

(Unit: 100 million yen)

300

1,000

266

258

12700

200
179

72%

193

775

600
10
500

5%

65
13

FY2022 Q1

6.5%

4%

63
10

FY2023 Q1

4.5%

310

4%

50

The second half bias in electric power construction will be offset bystrong constructionrelated business. Implemented various profit
improvement measures. Sales increased (+3.2%) and income

60

decreased (-29.4%) compared with the same period of the previous

50

year.

20

100
(10)
0

70

30

200 27%
24%

80

40

300
0
25%

Operatingprofit ratio

68%

400

100

0

77

900
20
800

17

70%

Q1 YoY changeElectric power Infrastructure
Operating profit

Impact of Changes in Business Environment
Impact of Copper Price
Fluctuation

Net sales decreased by 60 million yen.

Soaring raw material, energy,
and logistics costs

Although prices continue to rise, the Company has beenable to secure profitability through price pass-through andcost reductions. Logistics is preparing to address the 2024
problem.

Changes in demand

Although demand for both domestic construction-related
and electric power infrastructure is strong, electric power
construction work is heavily weighted toward the second
half of the fiscal year under review.

100

Full Year Plan

6.8%

12

Energy & Infrastructure Business

Growth Strategies to Achieve the Medium-Term Management Plan
(Unit: 100 million yen)

1,133

1,100

1,135

77

77

1,000

Net sales if
copper priceis 1230 yen

80

1,139

979

900
800
700 69%

782

68%

775
617

Publicationin November
2021

500

400
300

0

Operating
Profit Margin

27%

70

Tailwinds❶ Implementing a plan for renewal of aging facilities at thermal

63%

294

Future Business Environment Outlook

60（General-purpose electric wires ）600

Construction
Electric power
200 26%
Infrastructure
Seismic
100
Isolation/others
Operating profit 5%

Life
found
80
ation

310

31%

303

50
Deca
rbon
ation
40

power plants through the introduction of a revenue cap system❷ Publication by the government of a plan for the development ofa wide-area power grid (expansion of renewable energy)

30
20（Power cables, construction,❸ Continued

demandfor

power

resilienceasadisasterequipment parts, maintenance ）countermeasure10
disaster
57

4%

50

FY2022

FY2023E

6.8%

6.8%※

6%

59

0

Headwinds

FY2026E・・・ー

copper price

1,209yen/kg 1,230yen/kg※

・・・

870yen/kg※

CapitalExpenditure

1.5 billion
yen

・・・

FY22-26 total
9 billion yen※

2.5 billion
yen※

prevention❶ Rising energy and transportation costs（Seismic isolators, etc. ）❷ Shortage of construction personnel(low birthrate, aging population, FY2024 problem, etc.)※ planned figure

13Energy & Infrastructure Business

Timing of profit contribution from tailwinds (key point for rolling mid-term plan)❶Demand for renewal of aging thermal power plants will

increase from 2025.
Planned orders are expected to gradually increase from
2024.

❷
Profit contributions related to large-scale offshore wind
power are not expected until FY2026 or later.

for power reinforcement as a disaster❸ Demandcountermeasure has already started to contribute toprofits. Long-term demand is expected to continue.

de facto standardization in the substation market by leveraging product superiority
Products ・・ Promote
Promotion of universal design, reinforcement of production increase system, full lineup
Strategy including ultra-high pressure

Human
Resources
Strategy

・ Expanding alliances with educational and cooperative companies through the Construction
Human Resource Development Center・ Shift of our construction workforce to ultra-highpressure construction

14

Energy & Infrastructure BusinessInitiatives for Large-Scale Offshore Wind-Related Demand
In response to the expanding offshore wind power market, competitors are focusing on thesubmarine cable sector. We enter the market in cooperation with collaborating companies.
Large-scale offshore
wind power generation

Alliance with EXEO
Group, Inc.
transformer
substationtransformer
substation

Government railway line

Competitor❶ Product Supply

Power company❷ Provide construction education
programs
DX Teaching
Materials

Training in asimulated facility

Knowledge

On-the-job
training

15

Energy & Infrastructure Business

Ultrahigh pressure shift of our construction workforce through cloud of construction personnel

Expanding the circle of cloud construction personnel from Hokkaido to Okinawa and even to
offshore wind power. We are now able to shift our construction workforce from 66/77kV, which has
been our main domain, to the more profitable field of ultra-high voltage construction.

Ultrahighpressure

Products
Strategy

Our
Construction
Workforce● De facto standard ● Alliance expansion● Universal design● Full lineup● Production increase

275kV

Extra highpressure

Collaboratingcompany

154kV
66/77kV

Nationwide
Construction
companies

Human Resources
Strategy

SICOPLUS🄬Human Resource Cloud

Electricity Market Expansion
Depletion of construction personnel

Cloud Shift of Construction Personnel
Ultra-highpressure shift of ourconstruction personnel

16Energy & Infrastructure Business

Construction-related business (SFCC Co., Ltd. coated wire)
Efforts to improve profitability
Improved profitability of construction-related business, which accounts for 40% of group sales, by utilizing DX with ROIC
as an indicator. Expand contribution to group profits.

3 Measures for the New SFCC
1. Improve gross profit by improving customer convenience andservice

Factory
Offices
Under the direct control of the

Production progress
management through theperformance management
systempresident

Coated Wire DX Project

Distribution
Inventory
management basedon shipment
forecast

Material
Procurement

2. Build a demand-linked production and supply system
Copper-based
forecast by AI

3. Improve business processing by utilizing AI and data

Sales

Shipping forecast
by AI

Customers<ROIC Targets and Major KPI>

◆ Effects of DX introduction

Inventory
turnover days
Cost reduction(profit contribution)
CCC

FY2021

FY2022

FY2026
Target45 days

42 days

36 days-

500 million yen

1 billion yen

85 days

82 days

72 days17

Electrical Equipment and Components Business18

Electrical Equipment andComponents Business

FY2023 Q1 Segment Results
High-Performance Product Oxygen-free Copper
Other High-Performance Products
General-Purpose Products
Operating Profit
800

700(Unit: 100 million yen)

200

500

High-performance products for xEVs continue to be in an adjustment660

phase as demand recovers, but general-purpose magnet wires for heavy

10
600

155

Q1 YoY change

20

15
42%

electric machinery remain strong. Sales decreased (-10.7%) and income

280

decreased (-26.7%) compared with the same period of the previous year.

138
400

6
49%

76

100
7%

11

48%

66

10%

14

5

10
9%

300
200
49%

44%

68

42%

58

0
FY2023 Q1

Impact of Copper Price
Fluctuation

Net sales decreased by 80 million yen.

Soaring raw material, energy,
and logistics costs

Although prices continue to rise, the Company has beenable to secure profitability through price pass-through andcost reductions. Logistics is preparing to address the 2024
problem.

320

100
0

FY2022 Q1

Impact of Changes in Business Environment

600Full Year Plan

Demand for high-performance products for xEVs is
Operatingprofit ratio

4.0%

3.3%

2.3%

Changes in demand

expected to recover in Q2 and beyond, despite an
adjustment phase in Q1.

19

Electrical Equipment andComponents Business

Growth Strategies to Achieve the Medium-Term Management Plan
(Unit: 100700
million yen)

660

EV

614

581

600

30

44%

400

42%

254

9%

53%

15

17

9%

Publicationin November
2021

60

16%

200
47%

100

High-Performance Product
Oxygen-free Copper
Other High-Performance
Products
General-Purpose Products
Operating Profit

325（ Oxygen-free Copper
MiDIP®）

20EV

276

98

320
31%

10（ Copper Alloys ）
Life
found
ation

190

0

0
FY2022

Tailwinds

FY2023E

FY2026E

Operating
Profit Margin

2.9%

2.3%※

・・・

ー

copper price

1,209yen/kg

1230yen/kg※

・・・

870yen/kg※

CapitalExpenditure

1billion yen

1.8billion yen※・・・

FY22-26 total
6.6 billion yen※

❶ Increased use of our products and commercial
opportunities due to accelerated shift to EVs❷ Promote electrification of non-automotive
mobility

52

49%

Future Business Environment Outlook

26

280

500

300

822

Net sales if
copper priceis 1230 yen（ General-purpose
winding ）❸ Market expansion of semiconductor field
product lines due to CASE diffusion
Headwinds❶ Further price hikes in materials (copper,
resins)❷ The Rise of Chinese Manufacturers in theJapanese Market※ planned figure

20Electrical Equipment andComponents Business

Timing of profit contribution from tailwinds (key point for rolling mid-term plan)❶ Demand for high-performance winding wires for

Shipment Volume of High Functional Products by Category

Europe is on the rise. Investment to increase
production capacity will start from FY2023.

(Calculated with pre-Corona as 100)

250%
200%
150%
100%

50%

State of emergency
Outbreak and spread of new coronavirus

300%

Rapid Recovery
Upward Phase
10x
２x
1.5x

1000%
800%

❷
●
Sales expansion of high-performance windings
to the mobility market, such as sky-mobility, is
expected in FY2026.

600%
400%

1.5x
200%

❸ Entry into the semiconductor market (probe●pins) begin in FY2023. Plans to launch products
for Taiwan and Europe.

0%
-200%

0%

-400%
FY2019 FY2020 FY2021 FY2022 FY2023E FY2024E FY2025E FY2026E

Automotive windings (left axis)

MiDIP®(left axis）

Heater line(left axis）

High-performance windings (right axis)❹

Promote the development of high value-added
product groups by establishing a Mobility
Development Center and develop an IP
strategy by utilizing IP landscapes.

21

Electrical Equipment andComponents Business
Increased use of our products and commercial opportunities due to accelerated shift to EVs【 Drive motor ・MG】
【 Auxiliary motor ・ISG 】【DC－DC converter 】

Thick-film
flat-angle

Thinflat-angle

Auxiliaryconverter

motor【 Various ECUs and power chokes 】
Thinflat-angle
Superfineflat-angle

Inverter
Varioussensors【 Busbar 】

Magnetic clutch

Boostconverter【 Magnetic clutch 】【 Reactor 】

Wide width
flat-angle

Double-coatedround wire22

Electrical Equipment andComponents Business

Expansion into new technology application fields (expansion into pneumatic
mobiles, semiconductors, robotics, etc.)
For robots andprecision motors

Sky Mobility and othermobility-related products

New

Probe
New product

Existing

MarketMobility
Development

EV・HEV

New productProject

Lead
Mobility
Development

K-PRO

Motors, reactors,
electric compressors

Busbar

MiDIP®
Thick-film
flat-angle

Heater line
Product

Semiconductor Testing
Probe Cards

Mobility
Development

Existing

New

Technology

23

Electrical Equipment andComponents Business

Positioning shifts in the value chain
Wire rod

Winding

Semi processed
goods

MagnetWire
・ Products for Motor・ Applied Products

Finishedproduct

FutureStatus quo
Winding

Onboard
Products

Processed
goods
・ Coil Products
・ Processed products (bus bars, etc.)
・ Probe pin

Expansion of profit margin
24

Electrical Equipment andComponents BusinessResponse to Soaring Raw Material Prices❶ Introduction of surcharge system
Introduce a transparent price pass-through mechanism such as a fuel surcharge system andvarnish market linkage＜ Varnish Market
Linkage Mechanism ＞

VarnishManufacturerClientmarketlinked

marketlinked❷ Introduction of high-efficiency equipment
Introducing equipment with high thermal efficiency that significantly
reduces both energy consumption and CO₂ emissions<Comparison with conventional models >CO2 emissions reduced by 57%Energy
efficiency more than doubled

Energy usage
Significant cuts
CO２Emissions
Reduction

Introduction of energy-saving
equipment to winding production line

Mie Plant25

Communication and Industrial Devices Business26

Communication and Industrial
Devices Business

FY2023 Q1 Segment Results
Communication cables
Precision Devices

Wire harnesses
Operating profit

Q1 YoY change

350(Unit: 100 million yen)

100

200

35
54%

26

21%

17

0

FY2022 Q1

28%

20

18%

13

53%

160

18
16
14
12
10

38

150

3 100

2

19

250

70

33%

305

10
300

78

45%

20

FY2023 Q1

but this was offset by increased sales of communication cables, thereorganization of domestic production bases and the effect of reasonable pricesales. Sales decreased (-10.2%) and income increased (+67.2%) compared withthe same period of the previous year.

Impact of Changes in Business Environment

8
34%

105

50
00

Industrial Devices was partially affected by the drop in pandemic special demand,

13%

40

6

Impact of Copper Price
Fluctuation

Net sales increased by 20 billion yen.

Soaring raw material, energy,
and logistics costs

Although prices continue to rise, the Company has been able tosecure profitability through price pass-through and cost
reductions. Logistics is preparing to address the 2024 problem.

420Full Year Plan

Demand for communication cables was firm for constructionOperating
profit ratio

2.2%

4.2%

6.2%

Changes in demand

related applications.
Consumer electronics and personal printers lost some of thepandemic special demand.

27

Communication and Industrial
Devices Business

Growth Strategies to Achieve the Medium-Term Management Plan
441

Net sales if
copper priceis 1230 yen

428

70

(Unit: 100
million yen)
400

333

42%

305

300
47%

158

53%

200

160

100

Communication
CablesWireharnesses
Precision
Devices
Operating profit

103

71

0

Operating Profit
Margin

5.3%

45

50

180

13%

FY2022

60

42%

18
34%

21%

180

Publicationin November
2021

19
31%

５G
80
IoT

105
16%

40

Tailwinds（LAN cable ）

make
comfo
rtable40

30
20（ Wiring harness ）Workpl10ace
Reform❶ Increase in communication capacity bypromoting the use of AI and IoT❷ Increased opportunities to enter new markets
such as automotive❸ Growing demand for high-function home
appliances in response to increasingly sophisticatedsocial environments and living standards

Headwinds

0

FY2023E

6.2%※

68

Future Business Environment Outlook

FY2026E・・・ー

copper price

1,209yen/kg 1230yen/kg※

・・・

870yen/kg※

CapitalExpenditure

1.2billion yen 1billion yen※・・・

FY22-26 total
3.8billion yen※

（ Copy machine rollers ）❶ Cost impact due to underdeveloped supply chain
in emerging countries (materials and logistics)❷ Rise of local harness makers※ planned figure❸ China's economic slowdown

28

Communication and Industrial
Devices Business

Structural Reforms in the Wire Harness Business to Date
①Diversification of production bases (2 in China and 1 in Vietnam)②Promote local procurement and local production for local New plant to start operation in 2022
consumption（Jiaxing, Dongguan Local procurement rate 74% in FY2022 ）Wire Harness Sales Trends (Unit: Billions of yen)
2022

Solar power
generation

103
101

2021

97

2020

JIAXING SHOWAINTERCONNECT PRODUCTS CO., LTD.

92

2019
85

90

95

100

105

Automation
manpowersavingJIAXING

Plant expansion and relocation in 2023

Established factory in 2006
DONGGUAN
HUNG YEN

SWCC SHOWA VIETNAM
INTERCONNECT PRODUCTS CO.,LTD.

Cooperating
Company Location

DONGGUAN SHOWAINTERCONNECT PRODUCTS CO., LTD.

29

Communication and Industrial
Devices BusinessBusiness model change in the wiring harness business
Leveraging the effects of structural reforms to date, the company has entered the local market for consumer
electronics and the expected expansion of the automated driving market, expanding its business performance.

So far

Prospects

Net sales

10.3 billion yen

18 billion yen（ FY2022 Results ）(Medium Final Targets)

PartnerJapanese top manufacturer

Japanese & Local Company（ High quality products ）（ Provide requirement-optimized quality ）SystemVaries from country tocountry

Unification of production
control and quality
assurance systems

MarketJapan, China

Japan, China, Southeast Asia

For Home Appliances

Product

For high-performancehome appliances
For general home
appliances

For AutomatedDriving30

Communication and Industrial
Devices Business

FLANTEC®Products Lineup by Main Industries and Future Growth Projections
Expanding business performance in more profitable product areas by leveraging our brand power andtechnological capabilities with a 40% share of the domestic LAN cable market.

Sales Growth Trends

Automotive twisted pair cables

Cat.6A standards compliance TPCC® 6A(10Giga coil)
The GIGA school concept has led to a significant
increase in demand for 10 Gigabit transmissioncapable devices. In addition, the recent increase incommunication capacity due to the promotion of AI
and IoT utilization has led to a significant expansionof replacement demand.

Cat.8 standards compliance Twisted pair cable for LAN
Stable electrical characteristics in the frequency
band up to 2,000 MHz, four times that of Cat.6A,
enabling high-speed, large-capacity transmission
at 40 Gbp. Demand is expected to increase withthe future increase in communication capacity.

200%
180%
160%
140%
120%
100%

（Estimated as 100 before Corona※）
State of emergency
Outbreak and spread of new coronavirus

As driver assistance systems become moresophisticated, higher speeds are required in
in-vehicle transmission network. We havedeveloped a twisted pair cable for in-vehicle
use that enables high-speed transmission.

Approx.2x

1.8x
1.7x
1.5x

80%
FY2019 FY2020 FY2021 FY2022 FY2023EFY2024EFY2025EFY2026E
Constru
建販
合計
Industry
Mobilityction※ Mobility sales are estimated with FY2023 as 100 because Mobility
sales will be generated from FY2023.

31

Communication and Industrial
Devices Business

Full-scale operation of FLANTEC® for automotive applications
Deployment of high-speed Ethernet technology for high-precision cameras and other devices thatenable Level 4 or higher automated driving in line with the expansion of the ADAS market.

Mobility
Connected &Automated Driving

In-vehicle camera market forecast(global unit sales)
Unit: Thousands

利益率
10％288,120

OfficeNetworks

利益率
209,020 225,430
190,4705％
174,480
159,190

Tailwind2021 Ministry of Land, Infrastructure,
Transport and Tourism announces
mandatory installation of "real-view
vehicle identification devices" invehicles.

CY2022F CY2023F CY2024F CY2025F CY2026F CY2030F

Data Center
Networks：Camera.

Source: Fuji Chimera Research Institute, Ltd. Automotive Electronics Devices &Components Survey 2023 (Volume 1) ＜Systems and Devices>

IoT/M2M
Networks＜ Sales Flow ＞

Cable Manufacturing

Cable Sales

Connector
manufacturer

Carmaker32

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 the statements.

Such factors that may affect actual results include economic conditions, demand trends, and fluctuations in raw material prices and exchange rates.
Factors that may affect business performance include, but are not limited to, the following.