SWCC groups

Supplementary Material
for the First Quarter of the Fiscal YearEnding March 2022

Creating for the Future
SWCC SHOWA HOLDINGS CO., LTD.
（TSE1: 5805）
August 2, 2021

https://www.swcc.co.jp

FY2021 1Q Overview of Financial Results
Results：Despite under the declaration of the State of Emergency due to COVID-19, sales are on a recovery track.
Substantial increase in sales and profit compared to 1Q of the previous fiscal year, with profit recoveringto the level before COVID-19.
・ Energy and Infrastructure operations: Demand for construction-related products decreased from the previous 4Q,
but demand for electric power infrastructure remained strong.
・ Communication and Industrial devices operations: Communication infrastructure continued to be steady due to 5G
demand, etc., as in the previous 4Q. Industrial devices were also strong, mainly in China.
・ Electronic equipment and components operations: Demand for high-functional products for automobiles remained strong,
as in the previous 4Q.
About the announcement on July 21:

1Q Progress Rate (Net Sales/Operating Income)As of July 21, we have announced the "Discovery of Inconsistencies in Quality

1Q Progress RateTesting of Our Group's Products and the Establishment of a Special
Investigation Committee"（only available in Japanese).
The impact of this matter on our business performance is unclear at this time,

25%
Sales plan
180 billion yen

30%
Operatingincome plan
8.6 billion yen

but we will disclose it if we need to revise our business forecast.

2

Domestic Copper Prices/Copper Wire Shipments• The average price of domestic copper prices remained on an uptrend, partly due to the economic
recovery in China.
• Domestic copper wire shipments are recovering mainly in the electrical machinery and automobile
sectors, although the recovery in construction and electrical power sales is weak (+5％ YoY).
（Thousand yen/ton）Copper Cable Shipment Volume (tons)(Monthly Average) Domestic Copper Prices

200,000

1,400.0
1,200.0

150
thousand tons
Est.

143 thousand tons

150,000
1,000.0
800.0

100,000

600.0

Up 79.3％ YoY

400.0

50,000

200.0

00.0
Apr.

May

Jun.

Jul.

Aug.

Sep.

Previous year

Oct.

Nov.

Dec.

Current year

Source: Japan Electric Wire Manufacturers AssociationJan.

Feb.

Mar.

2019
Apr-JunCommunication
Automobile

Jul-Sep

Oct-Dec2020
Jan-MarApr-Jun

Jul-Sep

Electric power
Electrical construction and sales

Oct-Dec

2021
Jan-MarApr-Jun(Plan)

Electrical machinery
Other domestic demand

Source: Japan Electric Wire Manufacturers Association3

1Ｑ Consolidated Statements of Income• Performance was solid as expected, with significant increases in both sales and profits.

（Unit: 100 million yen）

FY20191Ｑ Actual

FY2020
1Ｑ Actual

FY2021
1Ｑ Actual

Composition％

YoY％

Net sales

430338452－33.6％

Gross profit

5441

61

13.5％

49.2％

Operatingincome

17626

5.7％

312.4％

Ordinary income

15626

5.8％

360.3％Net income
attributable toowners of parent

114173.8％

329.9％* The “Accounting Standard for Revenue Recognition” (Corporate Accounting Standard No. 29, March 31, 2020), and other related standards have been
applied from the beginning of the first quarter of the current fiscal year. The figures for net sales in the first quarter of FY2021 are after the application of thesestandards.

4

Quarterly Performance Trends (Last 3 years)（Unit: 100 million yen）

Changes in quarterly net sales

FY2019

600
452

430
400430 384

FY2020

FY20212,000
1,711465

434 430

Changes in cumulative
net sales

1,617

1,800

1,500

418

338
1,000

200

500
001Q
（Unit: 100 million yen）

2Q

3Q

Changes in quarterly operating income

30
26202625

FY2019FY202027251818

17

Year-end cumulative

4Q

FY2021

Changes in cumulative
operating income
100
80868676

60
40

10620
00
1Q

2Q

3Q

4Q

Year-end cumulative

5

Consolidated Balance Sheet（Comparison with the previous fiscal year-end）
March
2021
SWCC31,- B/S

June
30,- B/S
2021
SWCC

Unit: 100 million yen

1,600

1,600

1,400

1,400

1,200

1,2001,000

800

Current
liabilities
629

Currentassets
753

200

Long-term liabilities
184

Net assets
482

11,2952
1,2950流動資産

Current
liabilities
676

Current assets
812

Long-term liabilities
186

600

純資産

固定負債

2000

流動負債

Fixed assets
551

Net assets
501

1
1,363

固定資産

流動資産

+0.3billion+2.0billion+1.0billion

400

Fixedassets
542

固定資産

+4.6billion+5.9billion

800

600

400

1,000

Unit: 100 million yen

21,363

純資産

固定負債

流動負債

6

Results by Segment (Last 3 years)• The impact of COVID-19 is limited.
• Operating income in FY2021 1Q exceeded FY2019 1Q(before COVID-19).
FY20191Q Actual

FY2020
1Q Actual

FY2021
1Q Actual(Unit: 100 million yen)

Net sales
Energy andInfrastructure

211

Communication andIndustrial devices

76

Electrical equipment
and components

132

Others(New Business)
Total

Operatingincome（Profit margin ％）Net sales

12180

561

187

11（7）

△2（△1）

430

17（5.6％）（6.8％）（0.9％）（3.9％）

Operatingincome（Profit margin ％）Net sales

Operatingincome（Profit margin ％）5230

369014310（6）△2（△1）9（7）△２（△0）

338

645226（3.1％）（4.4％）（0.4％）（1.8％）

14（6.3％）5（7.4％）

8（5.4％）(5.7％）* The "Accounting Standard for Revenue Recognition"（Corporate Accounting Standard No. 29, March 31, 2020), and other related standards havebeen applied from the beginning of the first quarter of the current fiscal year. The figures for net sales in the first quarter of FY2021 are after theapplication of these standards.

7

Energy and Infrastructure Operations
1Q Results
Construction

Electric power infrastructure

Seismic isolation/Others

Operating income（Unit: 100 million yen）

Results30014250230

121412211
200

15063%

1340◆ Seismic isolation/Others
Seismic isolation devices, Antiseismic / Anti-shock8◆ Electric power infrastructure
Power cables, Construction, Powerdevice component (SICONEX®)

6Topics

Despite a decline in construction-related
demand, shipments of general-purpose
electric cables for large projects increased.

Demand for electric power enhancement,
renewal of aging infrastructure, and renewableenergy interconnection remained strong.

66%
62%

152
51005010180◆ Construction
General-purpose electric cables

112

428%

5927%

4927%

629%1811%

197%

16FY2019 1Q

FY2020 1Q

Press release on July 6

SICOPLUS™
Establishment of the “Construction Human Resources
Development Center”

Press release on July 6

Delivery of free-stripping outer conductor CV cables

20

FY2021 1Q*The new accounting standard has been applied only to the results for the first quarter of FY2021.

8

Communications and Industrial Devices operations
1Q Results
Communication cable
Precision devices（Unit: 100 million yen）

Wire harness
Operating incomeResults

1005580

576694616054%

34158%

4046%

323◆ Communication cable (Construction)Metal cables, optical cables,
Lan cables◆ Communication cable(Communication infrastructure)
Metal cables, optical cables◆ Wire harness(Home and industrial equipment, etc.)◆ Precision devices(Copy machine, etc.)

36

Despite favorable factors such as thestrengthening of communication
infrastructures, demand decreased in
the construction-related sector.

Recovered from the slump in demandcaused by COVID-19.

230%

Topics

17%

36%

2220

1325%

1617%

1025

118%

Press release on July 8

Market launch of improved Cat.6A LAN cables

1200
FY2019 1Q

FY2020 1Q

FY2021 1Q*The new accounting standard has been applied only to the results for the first quarter of FY2021.

9

Electrical equipment and components Operations
1Q Results
High-performance products oxygen free copper
Other high-performance products
General-purpose products
Operating income（Unit: 100 million yen）

150

10143
132
8120
40%

5351%

87

9010%

1344%

608%

746%

3943%
48%

61

FY2019 1Q◆ Other high-performance products (Automobile,electrical equipment, etc.)
Copper Alloy, High performance magnet wire◆ General-purpose products(Electrical machinery applications etc.)
General-purpose magnet wires

Demand for high-performance
products for automobiles andelectronic components was strong.

Demand for general-purpose
magnet wires for heavy
electronics continued to besluggish.

42Press release on July 20

4200◆ High-performance products oxygen freecopper (Automobile, electrical equipment, etc.)
Oxygen free copper MiDIP®

Topics66
196750%308Results

FY2020 1Q

Introduction of carbon-neutral city gas0FY2021 1Q*The new accounting standard has been applied only to the results for the first quarter of FY3/22.

10

FY2021：Forecast• While there are concerns that the impact of COVID-19 will continue, the Company plans to increase
sales and profit in FY2021 by capturing demand for environment-conscious products.
(Unit:100 million yen)

FY2020
ActualComposition%

FY2021
PlanComposition%

ChangeChange%Net sales

1,617

－

1,800

－

+183

+11.3%

Gross profit

218

13.5％

－－－－

Operating income

76

4.7％

86

4.8％

+10+13.3%

Ordinary income

78

4.8％

83

4.6％

+5+6.9%

50

3.1％

68

3.8％

+18+36.9%

20 yen12%

40 yen18%+20 yen－Net income
attributable to ownersof parentDividend/Payout ratio

11Creating for the Future
SWCC SHOWA HOLDINGS CO., LTD.
(TSE1: 5805)
Contact
SWCC SHOWA HOLDINGS CO., LTD.
STRATEGY SECTION,
BUSINESS STRATEGY PLANNING DEPT.
TEL:044-223-0520

Forward-looking statements in this document are based on information available at the timeof publication and contain potential risks and uncertainties.
Therefore, actual results may differ materially from those projected in the forward-looking
statements as a result of various factors.
Factors that could influence actual results include economic conditions, demand trends, rawmaterial prices, and exchange rate fluctuations, as well as other items not limited to the above.

https://www.swcc.co.jp