Creating for the Future

SWCC Group
Results Summary for the Third Quarter of the Fiscal Year Ending March 2022
and ESG Briefing
SWCC SHOWA HOLDINGS CO., LTD.（TSE1: 5805）

Today's Agenda and Speakers
１．Summary of Third Quarter ２． ESG Initiatives
Financial Results

３．From the Outside Director‘s

Perspective Governance of SWCC

President and Representative Director,
Chairman of the Board of Directors Group CEO

Managing Executive Officer

Director Chairman of the Auditand Supervisory Committee

Takayo Hasegawa

Futoshi Yamaguchi

Kiyoshi Togawa

23Q Results Summary

東証一部（5805）

FY2021 Q3Overview of Financial Results

Results： Sales and profits increased YoY, despite the impact of soaring raw material prices
・ Energy and Infrastructure Business： Despite a decrease in demand for construction-related products, shipments forlarge-scale projects were firm, but the impact of soaring prices of raw materials such as petrochemical products became
apparent. Demand for electric power infrastructure remained robust.
・ Communication and Industrial Devices Business： Demand for industrial devices recovered YoY. Although there was a
5G demand for telecommunication infrastructure, there was a decline in demand for construction-related products and theimpact of soaring raw material prices.
・ Electronic Equipment and Components Business： Demand for high-functional products for automobiles and electroniccomponents recovered YoY, despite the impact of reduced automobile production. There was also the impact of the risingcopper prices.

Q3 Progress Rate (Net Sales/Operating Income/Ordinary Income/Net Income)76%
Sales plan
¥195 billion

87%

87%

69%

Operating
Income plan

Ordinary
Income plan

Net
Income plan

¥9.5 billion¥9.5 billion¥7.6 billion

4Q3 Consolidated Statements of Income• Performance was in line with forecasts despite the impact of soaring raw material prices and logistics
costs, with sales and profits up YoY（Unit: 100 million yen）

FY2019Q3 Actual

FY2020Q3 Actual

FY2021Q3 Actual

Composition％

YoY％

Net sales

1,293

1,152

1,472

－

27.8%

Gross profit

179

155191

13.0％

23.9%

Operatingincome

6851

82

5.6％

62.2%

Ordinaryincome

6353

83

5.6％

57.3%

Net income
attributable toowners of parent46

3552

3.5％

51.1%

5Quarterly Performance Trends（Unit: 100 million yen）

Changes in quarterly net sales

FY2019600400452430
338434 430

384418Changes in cumulative net sales

FY2021525496430

FY20202,000465

1,950
Forecast
1,711

1,500

1,617

1,000
200
500
00Q1（Unit: 100 million yen）

Q2

Q3

Q4

Changes in cumulative operating income

Changes in quarterly operating income

FY2019FY2020

FY2021

3230

20262624

25

100

27

18

17

Year-end cumulative

2580

95
Forecast
8676

60

1840
1020

600Q1Q2

Q3

Q4

Year-end cumulative6

Results by Segment (3-year changes)• Sales and income increased in Energy & Infrastructure and Electronic Equipment & Components Business• Sales increased and income decreased in Communication & Industrial Devices Business
FY2019Q3 Actual（Unit: 100 million yen）

Net sales

FY2020Q3 Actual

Operatingincome

Net sales(Profit margin / %)FY2021Q3 Actual

Operatingincome

Net sales(Profit margin / %)Operatingincome(Profit margin / %)Energy and InfrastructureBusiness

667

48(7.2%)61835(5.7%)782

54(6.9%)Communication andIndustrial Devices Business229

20(8.6%)197

15(7.7%)220

13(6.0%)Electronic Equipment andComponents Business

362

3(0.9%)

3045(1.6%)

441

21(4.7%)

Others(New Business)

36(22)△4(△１)

33(23)△4(△0)

29(20)△6(△0)

1,293

68(5.2%)

1,152

51(4.4%)1,472

82(5.6%)

Total7Notice of Revision to Year-end Dividend Forecast for FY2021(Increase in Dividend)
To achieve the numerical targets (KPIs) in the medium-term management plan ahead of schedule, we have decided to revise
the year-end dividend forecast to 50 yen per share, an increase of 10 yen, as a result of comprehensively taking into accountcurrent business performance and other factors.
This amount is equivalent to the target of the current medium-term management plan for FY2022.
We will continue to strive for stable and continuous dividends by enhancing profitability and improving our financial position.
Annual dividend per share
Dividend payout ratio

End-Q2Previous forecast

Year-endーRevised forecast

Total

40.00 yen

40.00 yen16%

50.00 yen

50.00 yen

20%

Current results

0.00 yenーーー(Reference) Results for dividend pershare for the previous fiscal year

0.00 yen

20.00 yen

20.00 yen

12%

8Domestic Copper Value ／ Trends in Copper Wire Shipments• Domestic copper quotations remained high.
• Domestic copper wire shipments are recovering mainly in the electrical machinery andautomobile sectors, although the recovery in the construction and electrical sales sectors isweak.(Up 2.2% from the previous year)〈Monthly average〉 Trend in domestic copper construction value

Trends in Copper Wire Shipments（t）(thousand yen/ton)
200,000

1,400.0

163,000
tons

1,200.0

164,000
Tons over

150,000

1,000.0
800.0

100,000

600.0

Up 55.7% from the same period last year

400.0

50,000200.000.0
Apr.

May.

Jun.

Jul.

Aug.

Sep.

PFY

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

TFY

Source: Data from The Japanese Electric Wire & Cable Makers' Association

19/4-6
Telecommunications

7-9

10-12 20/1-3

Electricity

Electric machinery

4-6
Automobiles

7-9

10-12 21/1-3

4-6

Construction and electrical sales

7-9

10-12予Other domestic demand

Source: Data from The Japanese Electric Wire & Cable Makers' Association9Our Response to Soaring Raw Material Prices● Newspaper Report
The Nikkei Morning Edition dated 1/25/2022【Our Response 】

Domestic Electric Wire Prices Rise on Ripple
Effect of Higher Raw Material Prices• Ongoing price pass-through to customers• Price pass-through is progressing in theindustry as a whole.

● Crude oil and gasoline prices（＄/ barrel)

crude oil(WTI)

100.00• Petrochemical products soared due to rising
crude oil prices• Logistics prices soared due to risinggasoline prices(Yen/liter)
200.0

80.00

180.0

60.00

160.0

40.00

140.0

20.00

120.0

0.00

100.0

Jan.
Feb.
Mar.
Apr.
May.
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May.
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
Jan.

【Raw material price hikes】

Gasoline (regular)

2020

2021

2022

Source: Agency for Natural Resources and Energy

10ESG Initiatives

東証一部（5805）

E

S

G

ESG Management Priorities / Promotion of Businesses that Solve Social Issues
Based on our management philosophy of "Trust," we will focus on the following priority items. We will also
promote businesses that solve social issues by leveraging the technology and experience we have accumulated
in our business operations, aiming to realize a sustainable society and increase our corporate value.
ROIC・ Operating income

Climate change

Very highEnvironment / Energy

Disaster Prevention /Infrastructure

Promotion of renewable energy

Strengthening urban resilience

Greenhouse Gas
Emissions

Environmental
Preservation Industrial waste
Diversity and Inclusion
landfill rate
Number of female
managers in careertrack positions

Quitehigh.

Coexistence with
Local Communities

Life / Mobility
Corporate governanceoccupationalsafety and healthHigh

Quite highRealization ofhighly efficient EV motors

Safe and comfortable
automatic driving

Social and Environmental
Compliance
Productivity improvement
through work style reformand DXHigh

Stakeholder Expectations

Promote businesses that solve social issues

Education / Human Resource
Development
Solving the shortage ofworking population

Medical Care / HealthEnhancement of the medicalenvironment

Very highBusiness Importance

12E

CO2 Emission Reduction Initiatives
Annual CO2 emissions reducedby 554 tons when 1 km ofsuperconducting cable is appliedin a large-scale power plant of
30 MW or more

Major product lines that contribute to greening

Renewable
Contributingto Energy

LAN cable「TPCC® 6A(10Giga coil)」

Carbon neutral
Introduction of city gas
Mie Plant
Reduced annual
fuel-derived CO2emissions byapproximately 30％

Energy andNew
Infrastructure

Achieved 1.5 times higher
積載効率1.5倍を実現
loading efficiency
輸送時のCOReductionof CO
２排出削減
2 emissions
during transportation

Use of renewable energy

Tri-Axial Superconducting Cable

Communication Electricaland Industrial Equipment
Devices and Components

Drive motor

High performanceoxygen-free copper
MiDIP®

High efficiency
EV motor
realization

SWCC SHOWA CABLE SYSTEMS CO.,LTD.（Mie Plant）
SWCC SHOWA UNIMAC LTD.（ Head Office & Factory ）Based on the PPA Model
Introduction of Renewable Energy

Aichi Plant
Annual CO2 emissions
Reduction of approx 15%
SWCC SHOWA CABLE SYSTEMS CO.,LTD.（Aichi Plant）

13

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.

14E

7th Voluntary Environmental Action Plan (FY2021-FY2025)

15

E「Green Energy Project」
Established the Green Energy Project, a company-wide project team, to further reduce energy consumption in
the manufacturing stage. We aim to achieve both environmental friendliness and economic efficiency in order toachieve our medium- and long-term plans.
Green Energy Project

Global Warming Prevention Roadmap

GreenEnergy Project
事務局：CSR推進室
Utilization ofEnergy-saving
Renewable
EnergyCO2 solution WG CO2ソリューションWG
再エネ活用WG
省エネ生産WG
production
WG
WG（全セグメント）

CO2 Captureand Reuse
Innovation R&D（全セグメント）（３セグメント）

Conversion tohigh-efficiency
equipment

renewableenergyconversion

7th Voluntary Environmental Action Plan (FY2021-FY2025)’s Theme● Energy savings through reallocation, rationalization,and promotion of replacement of aging facilities●Renewable energy introduction rate 30%.
●100% electrification rate of renewal passenger vehicles

Continuing theme for 2030
● Deepening energy conservation by reviewing existing production methods● Further promotion of renewable energy installation rates● Basic study of new technologies such as CO2 capture and recycling

Reduction ofCO2 emissions
in current
manufacturing
processes
New
technology

Development

Implementation

e.g. ) Casting, baking, etc.

Development

Implementation

InnovativeTechnologyDevelopmente.g. ) Methanation
Use of waste heat,etc.

Implementation

Development
CO2 emissions
35% reduction
from FY2013

CO2 Reduction
target2020

2030

Implementation

Achieve carbon
neutrality

2050

16

EUsing TCFD Scenario Analysis to Solve Climate Change Challenges
Identified climate-related "risks" and "opportunities" by business segment under multiple scenarios
this year. In the next fiscal year and beyond, we will announce our endorsement of the May 2022
TCFD and quantify the financial impact.
BusinessDescription
Hearing

From FY2022
onwardScenario
Consideration

Identification ofImpact

Plans to endorse
TCFD in May 2022Quantification offinancial impact

Targeting the threemain businesssegments with thegreatest impact

1.5°C and 4°C
scenarios

Setting Risks andOpportunities
by business segment

Strategic ESG
Management
Minimize Risk/Maximize
Opportunity

17

SDiversity Management and Sustainable Human Resource Development Initiatives
Amidst an expected worsening shortage of workers, we are working to develop sustainable human resources
while promoting the creation of an organization that can flexibly accept, utilize, and adapt to the diverse
personalities of its employees, including differences in attributes and working conditions.
Senior Human Resource
Active System
This system provides
opportunities for motivatedindividuals who wish to continue
working after retirement.

Carrier setting pattern❶ General Senior System
Subject : Comprehensive and technicalpositions. General positions❷ professional system
Subject : Equivalent to generalmanagement positions❸ Short-time working
Subject : Comprehensive and technicalpositions. General positions❹ Turnaround Support System
Subject: Career-track positions

Promotion of women'sactivities
In April 2021, a project topromote women's activities
under the direct control of thepresident was launched.
Targets by FY2026
Percentage of management
positions 8%.
(approximately double theFY2020 level)
Percentage of managers andabove 10%.
(approximately seven times
the FY2020 level)

Obtained "SMBC
Nadeshiko Loan"certification inFebruary 2022 forbeing an advanced
company in women's
activities ⇒Promotion of HealthManagement

人材開発への取り組み

Using the Health Management
Strategy MAP to increase employee
engagement and steadily solve ourhealth challenges.

We operate education andtraining programs by rank basedon the idea that the power ofthe employee is the power ofthe company.

Health Investmenthealth investment effect

Increased laborproductivity and creativity
Recognized as
an excellent
healthmanagement
corporation for
two consecutiveyears ⇒●Next Generation Management
Succession Plan
●SD Seminar●Next Leader Training●Next Generation Management
Development Training●Cross-industry exchange training

SD seminars by outside directors

18SEfforts to Enhance Corporate Value through DX Promotion
We promote smart and speedy business operations in various aspects such as productivity
improvement and employee work style reform by utilizing a variety of digital tools.

PlantOfficeAccounting
and financeDigital Finance

Logistics

Capital strategy
Riskmanagement

Inventory data sharing
via smartphone

Organization
al Personnel

MaterialMobilization

Cloud-based work
time monitoring

HumanResource
Organizational
Strength
Employee
SupportInventoryReduction

Appropriate inventory
management using
AI forecasting

low cost

R&D

Manufacturing
and AssemblyMarketInsight

Quality
Assurance

Digitization

Digitization

MI・PI

SmartenSmarten

Open
Innovation

Process
Optimization

Visualization

Sales
Digital Sales
EC SaleshighturnoverCustomers

EC Site蛙屋For the Construction
Market DX Promotionof Products

Customer
SupportBranch Store19G

Governance Transition and Current Structure
In fiscal 2019, We transitioned to a company with an Audit Committee.
Beginning in FY2020, three of the four directors who are members of the Audit Committee have been outsidedirectors, thereby strengthening the advisory and monitoring functions of the Company's management.

(June 2015~)※ The above numbers are as of the end of March.

Board of Directors FY2020 Held 20 times ／Audit and Supervisory Committee FY2020 Held 17 times
Nominating Committee FY2020 Held 16 times ／ Compensation Committee FY2020 Held 9 times ／ Risk Management Committee FY2020 Held 3 times20GNew Quality Control System
In order to conduct another objective investigation of the products subject to investigation that were pointed out by an outside
party, an investigation was conducted by a committee chaired by a lawyer who is an outside expert. Based on the results of theinvestigation, we have analyzed the causes and implemented the following new measures to prevent recurrence.

① 「Organizational and Institutional Factors」② 「Environmental Factors Surrounding Quality Control
Operations 」③ 「Employee subjective and attributional factors」

Quality assurance in all inspection operations
Introduction of digital tools(automatic measuring devices)➡Thoroughness through the introduction of atamper-evident system

Organizationaland Institutional
Measurespreventivemeasure
Measures inthe work
environment

Quality Operations
Digitization Projects

Measuresagainst
Personality

Knowledge cultivation
Projects
Develop and implement knowledge andcompliance training systems required for
manufacturing, quality assurance, andengineering➡Compliance AwarenessPreventing Recurrence

Cause Analysis

21GRisk Management
Company-wide risk management with three lines of defense: business divisions (first line), administrative
divisions (second line), and audit divisions (third line).The Risk Management Committee, chaired by the GroupCEO, conducts risk assessment, risk management plans, response measures, and progress management of risk
measures throughout the year.
New Initiatives in FY21

●Conduct risk monitoringfor each department of HD【Main Agenda】

first line

second line

third line

Interest rate risk / Foreign exchange risk /Credit riskCopper price volatility risk /Human capital risk / Copper price volatility
risk / Copper price volatility risk / Humancapital riskSupply chain risk / Safety,environment and quality riskCyber attack risk/ Information leakage risk etc.

● Reinforcement of group-wide
credit management system

Strengthening credit management of business
partners in light of the uncertain economic andbusiness environment of the Corona disaster.

22From the Outside Director‘s
Perspective Governance of SWCC

東証一部（5805）

G

Efforts to Improve the Effectiveness of the Board of Directors
7 members (ratio of women: 14%, ratio of foreigners: 29%)
/ 20 meetings in FY2020

Governance Reform Practices
Conducting board effectivenessevaluations

3 directors

Role of Outside Directors
InsideInsideInside

1. management questions and advice

4 directors who are Audit andSupervisory Committee members

InsideOutsideOutsideOutsideEffective questioning and advice to theexecutive team to improve the Group's
medium- and long-term corporate value

The remote meeting of theBoard of Directors

2. Management and oversight of management
and conflicts of interest

Board of Directors Purpose
and Authority

Involvement in the selection and dismissal ofsenior management.
Management and oversight of management's
execution of operations and conflicts ofinterest.

To deliberate and decide on matters related tomanagement policy and business execution, as
well as to manage and supervise the directors toensure that their duties are performed legallyand efficiently, in order to achieve sustainablegrowth and increase the corporate value of ourgroup.

3. reflection of stakeholder views
The opinions of stakeholders, including
minority shareholders, are Board of Directors

24

G
New Quality Control System
Recognizing the importance of sales as the starting point for quality control
Reaffirmed the importance of sales as the starting point for quality control. At the same time as reviewing the internal quality
control process, an objective investigation was conducted on the products subject to investigation that were pointed out by an
external party, and based on the results, measures to prevent recurrence are being implemented.

Customers
Supply of good products
Provide appropriate
information

sales

qualityassurance
Manufacturing Machine
Maintenance ‣ Calibration
In-process inspection
Quality Check
ZERO DEFECTGroupCEO

manufacture

Getting the rightinformation
Internal sharing (DR)Agree on productspecifications

development
Confirmation of specifications
Reflected in manufacturing
instructions
Improvement ofmanufacturing capabilities
Quality Manufacturing

Quality Operations
Digitization Projects
Quality assurance in all inspection operations
Introduction of digital tools(automatic measuring devices)➡Thoroughness through the introduction of atamper-evident system

Knowledge cultivation
Projects
Develop and implement knowledge andcompliance training systems required for
manufacturing, quality assurance, andengineering➡Compliance AwarenessPreventing Recurrence

Customers for Customers

25

GActivities of the Nominating and Compensation Committees
NominatingCommittee
FY2020 Held
16 times

Chairperson
Committee chaired

OutsideOutside

Insideby an outside director
Majority of outside directors

Activities and Roles of Outside DirectorsReport on the Election and Dismissal of the PresidentReport on Proposed Election and Dismissal of Directors
and Executive Officers

Succession Plan Action Plan Development
Recommendations



Recommendations on the creation and use of humanresources mapsCreation of a skills matrix for appointed officers



Recommendations for Diversity Recruitment (Dive-In)

Compensation Chairperson
Committee
FY2020 Held
9 times

OutsideOut
side

Committee chaired by anInsideInside

outside director

Half are outside directors

Activities and Roles of Outside Directors
 Introduction of performance-based compensation system【indicators】• Operating income achievement ratio (A) = (current operating income
outlook ÷ current operating income target) x 100%
• Mid-term operating income achievement ratio (B) = {(operating income 2years prior + operating income 1 year prior) ÷ (operating income target 2years prior + operating income target 1 year prior)} x 100%
• ROIC achievement ratio (C) = (current ROIC outlook ÷ current ROIC target)
x 100%
Remuneration = Maximum performance-linked remuneration amount × (A× 40% + B × 30% + C × 30%)

26

G
Role of Outside Directors in Achieving the Goals of the Medium-Term Management Plan

Lobbying for the creation of stable, high value-added business models
Elemental technology(treasure trove)
Proposal of where to utilize
Reliability Design
Technology

Industry

Escalation
Technology

Metal Casting
Technology

The SWCC GroupMobility
In-vehicle high speed In-vehicle
Communication cable heaters
Contactless
Power Feed

Semiconductor Ink supply
Probe pin
Tube

SWCC Smart Stream

Fiber Optic
Technology

Metalworking Elemental Technologies
TechnologyResin Material
Technology

Multiply existing technology
with DX

DX
technology

Knitting
Technology

Medical Equipment
Robot

image diagnostic
equipment

Catheter

Existingtechnology

Endoscopy27

Commercialization of SWCC Smart Stream through DX solutions
SWCC Smart StreamOn-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

DXtechnology

AI

IoT・Data

AR・VR

5G・Wi-Fi6CameraSensing

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

28

Shift Portfolio to Growth Businesses

Future growth potential＋＋Comparison of portfolio
between FY2020 and FY2026ICT

Automotive
Industrial
Equipment
Electricpower
Telecommu
nications＋Construction－General-purpose products

ー＋＋＋

Efficiency (EVA spread : ROIC-WACC)
29

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)