Innovating new ideas today. Becoming the norms of tomorrow.

Small meeting for the Fiscal Year ended March 2023

June 2, 2023

TSE PRIME : 5805

Contents
１．FY2022 Overview of Financial Results
２．FY2023 Full Year Forecasts
３．Towards Realization of Management that is Conscious of the Cost of Capital
４．Appendix

2

１． FY2022 Overview of Financial Results

3

Overview of Financial Results for FY2022
Results: Sales and profits increased YoY, due to the effects of structural reforms and strong business, despite theimpact of the external environment.
• Energy and Infrastructurebusiness• Electronic equipment andComponents business• Communication and Industrial
devices business

Sales and profits increased YoY. The construction-related products captured the stable demand, as we revised
sales prices in response to rising raw material prices and improved profitability by integrating the manufacturing
and sales business. In products for electric power infrastructure, demand for renewal projects due to aging andrenewable energy-related products remained firm.

Sales and profits decreased YoY. Sales of high-performance products for automotive applications were sluggish
due to the impact of reduced automobile production, which continued from 2H of the previous fiscal year, despite
capturing demand for some products from Europe.
Sales increased and profits decreased YoY, although some negative effects in 1H, such as the partial delay instarting the reorganization of domestic telecommunication cable production bases and the impact of the
lockdown in China on the industrial devices, improved in 2H.

Progress Rate（Net Sales/Operating Income/Ordinary Income/Net Income）* Both ordinary income and net income reached record highs(Reflects revised earnings forecast announced on September 22, 2022)(Unit: 100 million yen)

Net Sales
2,170
2,091

120

Operating Income
105
103

120

Ordinary Income
103

Record
High

104

120

2,000

100

1,500

80

80

80

60

60

60

1,000

100

100

40

40

40

500

20

20

20

0

0

0

0

Plan

Results

Plan

Results

Plan

Results

Net Income

Record
High

90

94

Plan

Results

4

FY2022: Consolidated Statements of Income
Sales and profits increased YoY. Profits exceeded the plan, with both ordinary income and net income
reaching record highs.
（Unit: 100 million yen）

FY2021
ActualFY2022
ActualYoY（％）Net Sales

1,992

2,091

5.0

Gross Profit

254

258

1.8

Operating Income

100

105

4.3

Ordinary Income

99

Record High

104

5.2

Net income attributableto owners of parent

94

Record High

94

0.6

Dividend per share（Yen)50

60

ROE（％）

17.7

15.0

ROIC（％）

7.6

7.1（Difference fromprevious year）

10（Difference fromprevious year）▲2.7（Difference fromprevious year）▲0.5
5FY2022 Results by Segment
Profits recovered, despite the impact of the external environment, such as the reduced automotive production and the
lockdown in China. This was due to the strong performance of the Energy and Infrastructure Business, driven by
the favorable sales of construction and power-related products, as well as the strengthening of measures in the
2H of the year.
（Unit: 100 million yen）

FY2021
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 andOperating income
Industrial Devices Business
Operating income
margin(%)

FY2022
ActualYoY（％）

FY2022
ROIC
（％）

1,069
65
6.0

1,133
77
6.8

6.0
18.5
（Difference from
0.7
previous year）

8.7

586
24
4.0

581
17
2.9

▲0.8
▲28.7
（Difference from▲1.1
previous year）

6.9

295
18
6.2

333
18
5.3

12.8
▲3.1
（Difference from
▲0.9
previous year）

5.9

6

2．FY2023 Full Year Forecasts

7

FY2023 Full-Year Forecasts
The forecast incorporates higher energy and other costs but plans to increase sales and profits through various
measures. We plan to increase shareholder returns by paying an interim dividend.
Net sales(Unit: 100 million yen)

(Unit: 100 million yen)

2300

110

2.8%
increase
2100

Operating income

Ordinary income

10.6 billion yen (YoY: 2.0% increase)

2.2%
increase

107
2,150

105
105

Net income
attributable toowners of parent

2,091
100

7.0 billion yen (YoY: 25.6% decrease)
1900

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: 40yen
Total: 75 yen

8FY2023 Plan by Segment
Energy and Infrastructure Business
Construction
Seismic isolation/
OthersElectric power infrastructure
Operating income （ ）Operating
income ratio

Electronic Equipment and Components Business
High-performance products
oxygen free copper
General-purpose products

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

Communication and Industrial Devices BusinessCommunication cable
Precision devices

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

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

80

1,135

1,133

77
(6.8)70

77
(6.8)

60
782

775
50
40

294

310

57

50
FY2023E

FY2022(Unit: 100
million yen, %)
700

600

254

300

52

60

20

276

FY2022

333

20

280

15
15
(2.3)
10

200

0

(Unit: 100 million yen, %)

400

17
(2.9)

400

100

Copper price impact：Net sales up ¥0.5 billion

25

581

500

30

Positive factor● Improved profitability by integrating production and sales in
the construction-related●Sales contribution from investment in increased productionof SICONEX®
Negative factor● Decrease in special demand for construction

660

320

300

100

0

0

FY2023E

Copper price impact：Net sales up ¥5.0 billion18
158 (5.3)

20

19
(6.2)

160

200

5

305

103
105
71
FY202240

10

FY2023E

Copper price impact：ー

Positive factor●Recovery of high-performance products for xEVs in 2H of the year
●Steady demand for heavy electric machinery

Positive factor● Maximize the effects of the reorganization of telecommunication cableproduction bases.
● Elimination of China lockdown

Negative factor●Sluggish 1H sales of high-performance products for xEVs

Negative factor●Absence of the COVID-19 special demand in the Industrial Devices
Business.

9

Recognition of the Business Environment in FY2023
Progress in 1H performance is expected to be moderate compared to usual years. Profits are expected to grow for
the full year due to robust demand for power and telecommunications-related products in 2H and full-scale launch of
new businesses.
1H

2H

Same level as usual year

Same level as usual year

Electric PowerPower-related projects tend to be weighted toward 2H

Concentration of power-related projects with strong demand,such as renewable energy developments
Expand sales by increasing SICONEX ® production

Automobiles

High-performance products for xEV enter a correction phasetoward recovering demand

Recovery in demand for high-performance products for xEVIndustrial Devices

Absence of the COVID-19 special demand in the Industrial
Devices Business

Recovery in demand in the Industrial Devices BusinessCommunication

Same level as usual year

Expand overseas sales of e-Ribbon ®, expand sales of
FLANTEC ® for automotive applications

New Business (ICT)Same level as usual year

Full-fledged implementation of ICTConstruction

Recognition of theBusiness Environment10

FY2023 Consolidated Results CF Forecast and Capital Expenditure Plan
＜ Consolidated CF ＞
Investment CF
Operating CF

150（Unit: 100 million yen）

Free CF＜ Capital Expenditure Plan ＞

Financial CF
Cash andcash equivalents

Reduction of environmental impact, etc.

R&D

7%

130

2%

<YoY change>
100

50

Rationalization and
ICT enhancement5042＜▲45＞ 6
0

△ 50

＜+88＞

40 40

＜▲49＞

＜+44＞ ▲ 1

▲ 35

＜０＞

▲ 80
FY202227%
FY2023
CapitalExpenditurePlan¥6.7 billion
51%

▲ 50
△ 100

14%

Production Capacity Expansion

FY2023E

Reorganization and strengthening ofproduction bases, facility renewal

Breakdown by Segment
Energy and Infrastructure Business¥2.5 billion

Operating CF increased in FY2023 due to a reduction inElectronic Equipment and Components Business¥1.8 billion

working capital.

Communication and Industrial Devices Business¥1.0 billion

Investment CF increased due to increased capital investment.

Others¥1.4 billion

11

３．Towards Realization of Management that is Conscious of the Cost of Capital

12

Analysis of Current Situation (1): Changes in Profitability Improvement through Structural
Reforms Based on Capital Efficiency
Profitability, ROE and ROIC have improved steadily since the introduction of ROIC and the start of structural reforms in FY 2019.
Reorganization of major domestic production bases andwithdrawal from unprofitable businesses

ROE(%)FY2019: SWCC SHOWA UNIMAC LTD.made a wholly-owned subsidiary
FY2020: Tamagawa Electric Cable merged into SWCC SHOWA UNIMAC LTD.
Sold the rubber wire business
Dissolved DAIJI
FY2021: Transferred the anti-seismic and anti-noise business to Showa Science
Showa Recycle merged into LOGIS-WORKS CO., LTD
Reorganized the domestic production bases for communication cables
and dissolved Aomori Showa Electric Cable
Sold the Ebina Factory
FY2022: Integrated SFCC’s construction-related manufacturing and sales
businesses

ROIC(%)

30
20
12.3

Introduction of ROIC
Start of structuralreforms

13.5

7.3
14.7

7.4

10

5.4

8.0

7.6

17.7

6.3

15

7.1 7.0
6.0

11.4

5.6

5.0

0
4.0
3.6

-10

3.0
<Profit Improvement Results>
Integration of anti-seismic and antinoise businesses
Integration of SFCC’s manufacturing
and sales operations
Rationalization of magnet wirebusiness
Shifting wire harness businessoverseas
Reorganization of communication
cable production bases

Total (Unit: 100 million yen)

FY2020

3
5

8

Cumulative
total

FY2021

FY2022

1

1

2

3

3

3

9

3

-20

-30

2.0
-29.5
1.0

0.7
-40

FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

7

7

19

3

8

11

4-year average before introduction

4-year average after introduction

44

3.8%

7.1%

14

22

0.0

13

Analysis of Current Situation (2): Changes in Market Valuation
Both PER and PBR are improving due to higher capital earnings, but PBR has not reached the 1x recently.
The need to enhance disclosure regarding the Company's growth story in order to improve the market valuation is recognized.

Changes in PER(Unit: times)

Changes in PBR(Unit: times)

16.00

140

1.02

13.41

14.00

120

10.00
7.67

8.00
6.00

5.51

0.84

0.86

100

0.76

0.77
5.99

1.0

0.96

0.94

12.00
9.79

1.1

6.02 80

4.59

0.9
0.8
0.7

4.00

60

2.00

40

0.6

20

0.5

0.00
-2.00

-4.00

0.6

-2.12

0
FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

0.4

14

Initiatives for Future Growth
SWCC Group Purpose
Innovating new ideas today. Becoming the norms of tomorrow.
In conjunction with changing the Company’s name, the Group formulated our Purpose which contains the message of"responding to the changing times and creating new value.”
We will contribute to the creation of a sustainable and better future through our business.

Create sustainable "corporate value" and "shareholder
value" based on the Purpose

Aiming to promptly achieve ROIC of 10% or more, PBR of 1x or more, and adividend of 120 yen or more, with a lower limit of 10% for ROE.

Business Strategy

Financial Strategy● Promotion of businesses that solve social issues● Cash allocation● Optimization of the business portfolio● Further improvement of capital efficiency● Investment and profit contribution timeline● Maintain and improve financial soundness andshareholder returns

Non-Financial Strategy● Promotion of human capital strategies that
support sustainable growth● Contribution to a decarbonized society

15

Business Strategy: Optimization of the Business Portfolio
We aim to generate further profits by promoting concentrated investment in growth-driving and core businesses and by promoting the structural reform of the businesses. We will also
develop businesses for new markets and domains based on our core technologies. We will expand our business through open innovation, internal ventures and M&A.

Large

New market and new domain
business
Including M&A as growthMarketgrowthpotential

investment

Business investment

Growth-driving businesses

5-year total for FY2022 - FY2026

Decarbonization-related /international expansion

Smart Stream

Electricity infrastructure business (SICOPLUS®)

For mobility and semiconductor markets

xEV Business (high-performance magnet wires)

Investment in business

Developing new markets and new domains forOverseas business (wire harness)enhancement and DX withwire harnesses

a focus on growth-driving
businesses

Restructured businessCore business

Improve capital efficiency

Social infrastructure

General-purpose magnet wires and wire rods

Construction-related business (SFCC’s coated wires)

31.0 billion yen
Growth investment

20 billion yen

Communication cables for domestic market (FLANTEC®)
e-Ribbon® Business

Small

Business profitability

Large

16

Business Strategy: Business Investment Aimed at Achieving the Medium-Term Business
Plan and Profit Contribution Timeline
Profit plan

Business investment
5-year total for FY2022 - FY2026
160

Growth investment

billion yen

140

DX investment, environmental investment, others

Investment in businessenhancement and DX with afocus on growth-driving
businesses

31.0 billion yen

R&D

120

Production capacity expansion: 12.0 billion yen

Operatingincome 10.5
billion yen

Reorganization of production bases and facility
renewal<Breakdown>

Operatingincome 15

100

Production Capacity Expansion

80

Reorganization of production
bases and facility upgrades:

12.2 billion yen

Research and Development:

2.0 billion yen

60

DX investment, environmental
investment, others:
4.8 billion yen
Growthinvestment40

20.0 billion yen
200
FY2022

FY2023

FY2024FY2025

FY2026FY2022

FY202617

Business Strategy: Investment in Increased Production for Growth-Driving Businesses
and Profit Contribution Timeline
Overseas expansion

Decarbonization-related
Strategic Products
Growth Strategy

SICOPLUS®
Renewal of aging substations andpromotion of renewable energy introduction

OperatingincomeCAGR9％
FY22-FY26

Total
investment
2.4 billion yen

Total
investment
2.7 billion yen

Intensive
investment period

FY2023

FY2024FY2025

FY2026

Wire harnesses
Enter the industrial device and automotive markets andpromote China Plus One

OperatingincomeCAGR19％FY22-FY30

FY2022 FY2023 FY2024 FY2025 FY2026

Total
investment
2.1 billion yen

OperatingincomeCAGR33％
FY22-FY26

FY2023

FY2025Intensive
investment period

Intensive
investment period

Investment inincreased
production
Profitcontribution
Timeline

FY2022High-performance magnet wires
Promotion of xEVs

FY2030SICOPLUS Operating income

Operating income from high-performance magnet wires

Total investment in increased production

Total investment in increased production

FY2022

FY2024FY2026

Overseas wire harness business operating income
Total investment in increased production

18

Growth Driving Business:
SICOPLUS® Growth Strategy (key points of rolling mid-term plan)
Developing strategies in terms of both "products" and "human resources" for the expanding market against the
backdrop of national policies.Rolling out this fiscal year, taking into account national policies that had not been
incorporated when the medium-term business plan was announced. To be disclosed in the next fiscal year.
2020年
FY20202021年
FY2021

2022年
FY2022

2023年
FY2023

2024年
FY2024

2025年
FY2025Add

Transmission and substation
network development, revenue cap

２
７
５
ｋ
Ｖ

Large-Scale Offshore Wind
Investment
Large-scale renewable energy
power interconnection

１
５
４
ｋ
Ｖ

Power Plant Renewal/Upgrading

Reconsid
erationReconsid
erationRenewal of aging facilities
Renewable Energy Grid Stabilization

Pro
duct

Per
son

Strategy

Promoting de facto standardization in the substation market byleveraging product advantages such as light weight,
compactness, reduced installation time, and simple joint design

６
６
７
７
ｋ
Ｖ

extra-high pressure

National Policy andSales Expansion

Electricity market CAGR: 5-10%
Aim for 12% CAGR in our sales～2030年~FY2030
UltrahighPressure

Add< Medium-term plan period >(forecast at the time of medium-term plan formulation)

2026年
FY2026

Promotion of universal design, reinforcement of production increase system, full lineup
including ultra-high pressure

Expanding alliances with educational and cooperative companies through the Construction
Human Resource Development Center

19

Growth Driving Business: High Functional Winding Wire Growth Strategy(Key Points of Rolling Mid-term Plan)
Shipment volume up to the mid-term plan is estimated based on various reports on the business environment and customer information.
Preparing for a rapid recovery from FY2024 onward.

Shipment Volume by Product Category(Calculated with pre-Corona as 100)

Shift to a high value-added business model with an eye on future markets

Rapid Recovery
Upward Phase

200%
150%
100%

State of emergency declaration

250%

Outbreak and spread of new coronavirus

300%

10times

２times

1000%
800%
600%

1.5times

Market forecasts indicate a rapid increase in demand for windings in
FY2024 and beyond. Shift to a more highly processed and profitablebusiness model by leveraging the brand power of MiDIP® high-performance
wire rods. Expand sales destinations and product lineups to promoteelectrification of cars, automated driving, and comfortable spaces.
Wire Winding
Manufacturer

Wire rod manufacturer

Carmaker

400%
1.5times

200%
0%

50%

Sheet CopperHigh performanceoxygen-free copper

MiDIP ®

Value-added increaseby adding coilprocessing to individual
wire rods

-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)

Flat wire Enameled Flat Wire
(With Insulation)(bare)

Wire rod

Our current main field

Production capacity
to increase five-foldTarget for FY2026

Fields to focus on in the future

20Growth Driving Business: Wire Harness Growth Strategy(Key Points of Medium-Term Plan Rolling)
Structural Reforms to Date

Dissolution in September 2020
September 2020 Manufacturing and

Daiji①Diversification of production sites②Promote local procurement and local
production for local consumption

development relocation

Investment
1.6
billion yen
April 2020

Domestic Sale

(Jiaxing, Dongguan Local procurement rate: 74%)

SDS

Jiaxing Showa
Interconnect productsPlant to start operationin January 2022

中国

For Automotive
Wire Harnesses

Reducedelectricity costs
and CO2 emissions
by introducing
solar power
generation

Responding to ADAS
demand in addition to
consumer electronics

China

Change in the ratio of production bases
before and after structural reforms

Jiaxing

Jiaxing Showa
Interconnect products
VietnamVietnamHunyen

SWCC SHOWA VIETNAM
INTERCONNECT
PRODUCTS CO., LTD.

Japan

ベトナム
FY2026FY2019China

Net sales
9.2 billion yen

Allow for flexibility in supply

Vietnam

Dongguan

Dongguan Showa Interconnect
products Co., Ltd.

Total floor area Approx. 35,000 m2

China

SWCC SHOWA VIETNAM
INTERCONNECT
PRODUCTS CO., LTD.

Plant relocation in April 2023
Twice thecurrent Total
floor area

Sales plan
18 billion yen

Total floorarea Approx.
5,700 m221

Base 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 days22

New Markets and New Business Domains:
Growth Strategy for ICT Business (AXIO corporation.)
Shifted to a highly profitable business model by shifting the revenue structure from a "sell-out" type to a "subscription"
type, with the Zero Trust business as the main pillar. From FY2023, the new business will finally become profitable.
<Background of Business Growth>
Customers' needs are shifting from on-premise systems with high operational and management
burdens to cloud-based systems.

＋Cloud-based

Zero-trust Security
Business
Revenue structure: Subscription

FY2021
M&A investment
200 million yen

Net sales target
About
20 times

FY2020Operating income ratio: approx. 3 times

ID Management
Service（Company）

On-premise model
Revenue Structure: Sell-Off

80

HR System

FY2026 target

60

Estimated number ofcompanies in 2023
Second half of thisyear become
profitable

40
20※Zero Trust is the concept of taking strong security measures basedon the premise of trusting nothing.

0
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

23

Financial Strategy: Maintain and Improve Financial Soundness and Shareholder Returns
We will maintain and improve our financial soundness and aim to achieve a dividend of 120 yen or more assoon as possible, while maintaining a balance with growth investments.

70,000Interest-Bearing Debt and DE Ratio

60,00057,482

140

227

50,00051,419183 48,994

200.0 120

46,657

149

37,689 39,171

41,177

25.0

150.0

19.1

ｂ

100.0

79

20,000

67

61

16

60

12
40

4

20

FY2015FY2016FY2017FY2018FY2019FY2020Interest-bearing debt (millions of yen)

FY2021

FY2022DE ratio (%)

0.0

0

75

20.0

60
15.0

50

8.2

50.0

10,000

0

30.0

80

107

35.0

120

100

134
30,000

40.0

35
32

42,30340,000

Dividend per share and dividend payout ratio

250.0

Target for the final
year of the mediumterm management
plan

0

0

5

FY2015FY2016FY2017

4.6

15

10.0

20
5.0

7
FY2018FY2019Dividend per share (yen)FY2020

FY2021

FY2022E

FY2023E

FY2026E

0.0

Dividend payout ratio (%)

24

４．Appendix

25

Financial Strategy: Cash Allocation
Appropriately allocate generated cash to the strengthening of core businesses, growth investment in newmarkets and business domains, and returns to shareholders.
Cash generation
Five years from FY2022 to FY2026

Generation of operating
cashflow
61.7 billion yen or more

Cash Allocation Strategy

Business investment
Investment in businessenhancement and DX with afocus on growth-driving
businesses
31.0 billion yen
Growth investment in newmarkets and businessdomains
20 billion yen

Shareholder returns

Stable and continuous
dividends through balancewith growth investments
10.7 billion yen

26

Financial Strategy: Further Improvement of Capital Efficiency
ROIC by business segment has been established from FY2022. It is broken down in an ROIC tree and disseminated to the operational level of eachdepartment through the use of the company newsletter, etc., and will be thoroughly utilized in the review of business portfolio optimization and investment
decisions. (The following is an excerpt from an article in the fall issue of the company newsletter)

E Business

D Business

Target for FY2026: Company-wide ROIC 10% or more
C Business

FY2022 Results: Company-wide ROIC 7.1%
Segment ROIC: E Business = 8.7%; D Business = 6.9%
C Business = 5.9%
ROIC Formula
Company-wide ROIC = Operating income after tax / invested capital (equity capital + interest-bearing debt)

ROIC by Business = Operating income after tax / invested capital (working capital + fixed assets)27

Non-Financial Strategy: Promotion of Human Capital Strategies that Support Sustainable Growth (1)[Human Resources Portfolio Management]
In promoting structural reforms and transitioning to the growth phase,the following measures are being promoted in order to respond to changes
in the required human resource skills.

● Strengthen job-based recruitment
Strengthen the recruitment of the necessary human resources with specificskills for immediate results and highly specialized human resources.

Operating income per employee and numberof employees

249
10,000
9,000

198
176

8,000
7,000

● Expand systems to match the needs of the Company and employees
In order to realize the placement of the right person in the right job, the job
challenge system and internal recruitment system will be expanded and enhanced.

6,000● Establish a compensation system that encourages challenges

4,000Transition to a compensation system that more appropriately reflects the efforts
and achievements of employees who take on challenges.
● Shift human resources to growth businesses

3,000Intensive allocation of human resources to strengthen growth businesses.

235

5,000

Furthergrowth
phase

250

200

148
132

4,757

150

ｂ
100
4,494 4,352 4,319
4,280 4,201
50

2,000

0
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022
All employees (persons)Operating income per employee (10,000 yen)28

Non-Financial Strategy: Promotion of Human Capital Strategies that Support Sustainable Growth (2)Women's Participation Promotion Project Initiatives[Diversity Management]
To create an environment wherethe values and individuality ofeach employee is valued andthey can fully demonstrate theirabilities and shine

We are promoting the creation of diversity-oriented systems andorganizations with the aim of being a highly competitive company
that can flexibly respond to the changing needs of customers.
● From a "Women's Participation Promotion Project" to a "Diversity
Promotion Project”
The project, which was launched in April 2021, has added male members from April
2023 to promote efforts to raise awareness of unconscious bias.
● Promote the taking of childcare leave, etc. that is not limited to women
Promotion of an understanding of childbirth and childcare through theestablishment of a personnel system and in-house training programs.

・ An event co-sponsored with Keidanren, the Cabinet Office, and theMinistry of Education, Culture, Sports, Science and Technology to nurture
female junior high and high school science and engineering students.
In March 2023, a lecture introducing case studies from the Company was given
at the request of the Cabinet Office in recognition of our innovations, such as
attracting customers through local governments.

● Started social media
campaignsｂStarted strengthening
recruitment throughInstagram, which isfamiliar to the younger
generation. Videoviews exceeded
100,000.

● Extend the retirement age and introduce an optional retirement
systemCreation of an environment in which experienced and seasoned employees
can work with confidence.

29

Non-Financial Strategy: Contribution to a Decarbonized Society
Under the Green Energy Project, the company aims to achieve carbon neutrality by 2050 by implementing various measures, including the introduction
ofrenewable energy atdomestic and overseas manufacturing bases, promotion of procurement of non-fossil energy, and the introduction of highefficiency, energy-saving equipment using new technologies.
CO2 emissions(t-CO2 /year)

80,000

Renewable energy
introduction ratio<Road Map to Carbon Neutrality by FY2050>

Initiatives to introduce renewable energy at
manufacturing sites(%)

CO2 emissions
Renewable energy introduction ratio

100%*Compared to FY2013

90%

70,00037% CO₂
reduction*

60,00045%

50% CO₂

CO₂● Increase the installation rate of renewable energy at
production sites● Introduce energy-efficient manufacturing equipment● Develop and commercialize new technologies such as
superconductivity applications● Increase the number of registered environmentallyfriendly products● Consider the introduction of internal carbon pricing

50,00040,000

Domestic Scope 1 & 2

30,000

renewableenergyintroduction

FY2030FY2050

2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050

FY2025Endorsement of TCFD
Recommendations

60%

50%

20%

10,000

FY202270%

Aichi Factory

Mie Plant

Introduction of renewable energy
through the PPA model

Introduction of carbon neutral city gas

Annual emissions reduction of 956 t-CO2
Equivalent to approximately 20% of annual
electricity use

Reduction of approximately 30% of fuelderived CO₂ emissions(approx. 13,000 t)ｂ

30%

renewableenergyintroduction

0
FY2013

80%

40%

40%

30%

20,000<Details of Initiatives>*

reduction

reduction*

China Jiaxing Factory

Sendai Plant

10%

Introduction of renewable energy
through solar power generation

Introduction of renewable energy
through solar power generation

0%

Annual emissions reduction of 728 t-CO2
Equivalent to about 40% of annual electricity
use

Annual electricity sales equivalent to
50 million yen

Achieve carbon neutrality

30

FY2022 Results by Segment / Energy and Infrastructure Business

Sales and profits increased YoY, backed by improved profitability through the integration of the construction-related manufacturing asales businesses and firm demand for renewal projects due to aging and renewable energy-related products.
Net sales （Unit: 100 million yen）
300
1,100

200
100

180

230 258209

263 281230302
247 287289 293

900
Q1

Q2

Q3

Operating income （Unit: 100 million yen）
30

Concentrationof construction
projects

20

Structuralreform effects¥0.2 billion

FY2021

10

14
5
Q1

17
12

16

Q2

16

600

FY2020

60
54

69%

66%

706

64%

50
782
40

554

30

300
200

10

100

Q4

0

FY2021

65

400

19

Q3

70

865

700

Structuralreform effects
500¥0.1 billion

25
19

17

FY2022

Allowance processing
for Middle East power
construction projects- ¥0.4 billion

24

80
77

800

Q4
FY2020

1,133

1,069

（Unit: 100 million yen）
1,000

0

0

Construction
Electric power infrustructure
Seismic isolation/Others
Operating income

FY2022

20
27%

235

9%

77

FY202026% 279

8%

84

FY2021

26% 294

10

5% 57

0

FY202231

FY2022 Results by Segment / Electronic Equipment and Components Business
Sales and profits of high-performance products decreased YoY due to the impact of reduced automobile production, which
continued from 1H of the previous fiscal year, despite capturing demand for some products from Europe.
Net sales（Unit: 100 million yen）

150

600

100
50

143 155

152 144

96

87

120

146 161

127 145 122

High-performance products oxygen free copper
Other high-performance products
General-purpose products
Operating income
581（Unit: 100 million yen）

500

24

0

431

Q1

Q2

Q3

Q4
FY2020

FY2021

Decrease in demand due to thecustomers' inventory adjustments at theend of the fiscal year and the impact of
reduced automobile production.

0

6
0

4

1
Q1

7

6

Q2

302

200
100

20

254
50%
9%

216
8%

8

44%

FY2022

Operating income （Unit: 100 million yen）

5

52%

400
300

10

30

586

10%

44

40%

171 7

52

17

49
10

40%

47%

235

276

5

4

3
Q3

3

1

Q4
FY2020

FY20210

0

FY2020

FY2021

FY2022

FY202232

FY2022 Results by Segment / Communication and Industrial Devices Business
Sales increased and profits decreased YoY, although some negative effects in 1H, such as the partial delay in starting the reorganization ofdomestic telecommunication cable production bases and the impact of the lockdown in China, improved in 2H.

Net sales（Unit: 100 million yen）

Communication cable
Wire harness
Precision devices
Operating income

90

333

60
30

61

69

78

71

66

86

70

81

95

73

75

74

300

（Unit: 100 million yen）

295

270

0
Q1

Q2

Q3

Operating income （Unit: 100 million yen）

6

5

4

3

2

0
Q1

Q2

200

4

20

49%
49%

131 18

18

100

36%

97

16%

42

34%

101

17%

50

5

5
3

3
Q3

0

FY2020Q4
FY2020

FY2021

158

18

31% 1038

7

3

FY2022
Structuralreform effects¥0.1 billion

Structuralreform effects¥0.2 billion

Structuralreform effects¥0.2 billion

6

FY2021

47%

144

Q4
FY2020

9

30

21%

10

71
0

FY2021

FY2022

FY202233

FY2022 Change Factors
2,200億円

Change factors for net sales+ ¥15.1 billion

2,150億円

Energy andInfrastructure
Business

2,100億円
2,050億円
2,000億円

FY2021
Effect of rise incopper prices

1,950億円
1,900億円
1,850億円- ¥0.2 billion¥199.2billion[Change factors]- ¥8.4 billion+ ¥3.2 billion+ ¥0.2 billion

FY2022

1. Net sales

OthersElectronic
Equipment
andComponents
Business

Communication
and Industrial
devices Business

Foreign exchange
impact: ¥1.6 billion¥209.1billionEnergy and Infrastructure Business: 6.6 billion yen
Electrical Equipment and Components Business: 7.9 billion yen
Communication and Industrial Devices Business: 0.6 billion yen

1,800億円

Change factors for operating income

Increased mainly by passing
cost increases due to higher
copper prices on selling prices
promptly.
Foreign exchange effects
include about 1.6 billion yen in
the Communication andIndustrial Devices Business.

2. Operating income
FY2021¥10.0
billion- ¥0.9 billion
Slower profit
growth due
to copper
price impact+ ¥0.8 billion + ¥0.1 billion + ¥0.4 billion- ¥3.1 billion + ¥3.1 billion

FY2022Foreign exchange
Elimination of
conversion
temporary losses
Structural reforms
impactPrice hikes in
raw materials,
etc.

Increase in selling
prices and cost
reduction¥10.5
billionThe rise in raw material prices
was covered by sales pricerevisions and cost reductions.
Profits increased thanks to therestructuring benefit of 800
million yen and the foreignexchange gain of 100 million yen.

34

Actual Capital Investment in FY2022＜ Actual Capital Investment ＞
Reduction of environmental impact, etc.

R&D
Rationalization and
ICT enhancement

13%

2%

FY2022
Actual Capital
Investment

42%

Breakdown by Segment3%¥4.3 billion

Production Capacity
Expansion

40%

Energy and Infrastructure Business1.5 billion yen
・Expansion of coated wire manufacturing facilities and power
equipment manufacturing facilities, etc.
Electronic Equipment and Components Business1.0 billion yen

・Expansion of winding manufacturing facilities
Communication and Industrial Devices Business1.2 billion yen

・Expansion of telecommunication cable manufacturing facilities

Reorganization andstrengthening of production
bases, facility renewal

Others

0.6 billion yen

・Business site strengthening and system-related

35

FY2023 Change Factors
Change factors for net sales+ ¥5.5 billion¥209.1billion- ¥2.8 billion- ¥0.3 billion
Energy andInfrastructure
Business

FY2022+ ¥2.9 billion+ ¥0.6 billion
Electronic
Equipment
andComponents
Business

Communication
and Industrial
devices Business

FY2023

Others¥215.0billion

Effect of rise incopper prices
Energy and Infrastructure Business: 0.5 billion yen
Electrical Equipment and Components Business: 5.0 billion yen

Change factors for operating income
FY2022+ ¥0.2 billion- ¥1.1 billion- ¥0.2 billion
Rising energy, logistics,
and other costs

FY2023+ ¥1.1 billion
Structural reforms¥10.5
billion+ ¥0.2 billion

Absence of the
COVID-19 special
demandNew business
（ICT）

¥10.7
billionIncrease in selling
prices and cost
reduction[Change factors]
1. Net sales
Expected to increase mainly
by passing cost increases
due to higher copper prices
on selling prices in a timely
manner.
2. Operating income
The higher energy andlogistics costs will be coveredby sales price revisions andcost reductions. Profits are
expected to increase due tothe full-fledged launch of
new businesses (ICT), in
addition to the 200 million
yen restructuring impact.

36

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.