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Supplementary Material for the First Quarter of the Fiscal Year Ending March 2025

August 9, 2024

TSE PRIME : 5805

Contents

1. FY2024 Q1 Overview of Financial Results
2. Appendix

2

1. FY2024 Q1 Overview of Financial Results

3

FY2024 Q1 Financial Results Overview

ManagementEnvironment

 Increased investment in progress toward a decarbonized society and digitalization.
 Movement toward annual leveling the number of construction projects throughout the year
against the backdrop of the so-called "2024 problem".
 In the automotive-related market, we are in an adjustment phase due to the suspension ofproduction and shipping by some automakers.
 In the electric wire industry, overall demand for electric wires remained flat.
 The average domestic quotation price for copper increased YoY.

Net sales

Q1 sales increased YoY due to strong performance in the Energy and Infrastructure Business.
[Status of Major Business Fields]
Energy and Infrastructure: Construction-related demand was strong, and construction projects wererobust in addition to special demand for electric power infrastructure.
Automobile: Demand for high-performance products for EV is recovering, despite being in anadjustment phase.
Communication Cables: Demand for construction-related and automotive applications remained firm.

Operatingprofit

Operating profit increased YoY, as it greatly exceeded initial expectations due to steady demand forelectric wire, which has continued since last fiscal year, and special demand for highly profitableprojects.

4Key Points of the Financial Results for Q1Q1 YoY Change

Q1 Progress rate

Sales and profits increased due to steady demand for electricwires, leveling of construction projects, and special demandfor high-profit projects.

The progress rate for net sales was on par with the previousyear, but operating profit was much higher than the previousyear due to special demand for high-profit projects.

Net sales70

Up 17.6%

60(Unit: 100 million yen)

Operating profit
RecordHigh

5040484569

Net sales

2,250

23.1%

25.3%

Operatingprofit

135

17.2%

36.1%

Q1
Progress
rate

4920

FY2024 Q1

Full-year
Plan30

10FY2023 Q1

Up 203.5%(Unit: 100million yen)

FY19-23Avg.
progressrate

016
FY2023 Q1

FY2024 Q15FY2024 Q1 Consolidated Statements of Income
Q1 performance in the Energy and Infrastructure Business exceeded initial expectations.
Although we expect the business to remain strong in the future, it has left its full-year business forecasts unchanged as ofthe current quarter.
（Unit: 100 million yen）

FY2023
Q1 Actual

FY2024
Q1 Actual

FY2024Full-year plan

Progress
rate%

YoY%

Net Sales

484

569

2,250

17.6%

25.3%

Operating Income

1649

135

203.5%

36.1%

Operating Income
Margin（％）

3.3

8.5

6.0ーーOrdinary Income

1646130

189.4%

35.6%Net income
attributableto owners of parent

122990148.3%

32.5%
6

FY2024 Q1 Change Factors (YoY)
Change factors for net sales+¥4.7 billion+¥4.1 billion
Energy andInfrastructure
Business

FY2023 Q1-¥1.0 billion+¥0.7 billion

ElectronicEquipment
andComponents
Business

Communication
and Industrial
devices Business-¥0.02 billion
OthersForeign exchange
impact: +¥0.3 billion¥56.9 billion

Effect of changes incopper prices¥48.4 billion

FY2024 Q1

Energy and Infrastructure Business: +2.1 billion yen
Electrical Equipment and Components Business: +1.9 billion yen
Communication and Industrial Devices Business: +0.1 billion yen

Change factors for operating income+¥1.8 billion

FY2024 Q1

Effect of improving
product mix andprofitability¥4.9 billion+¥1.2 billion
FY2023 Q1¥1.6 billion-¥0.5 billion
Increase in materials,
logistics costs, etc.

+0.5 billion
Selling price pass-throughand cost reduction+0.3 billion
Increase inconstruction andother sales

Special demandfor high-profit
projects[Change factors]
1. Net Sales
Sales increased YoY due tostrong performance of growthdriving businesses, without theexpected drop in demand fordomestic construction-related
products at the beginning of theperiod.
2. Operating Income
Increases in raw material prices
and logistics costs are covered bypass-through of sales prices andcost reductions. Profit increased
substantially YoY due to anincrease in construction and othersales, as well as special demandfor highly profitable projects andthe effects of improved profitability.
[Future Initiatives]
Secure appropriate inventory to
prepare for shipments after Q2.

7

FY2024 Q1 Results by Segment /Energy and Infrastructure Business
Sales increased by 25.6% YoY and profits rose by 253.9% YoY due to robust domestic construction-related electric cable demand continued from the H2 of theprevious fiscal year, as well as special demand for high-profit projects for electric power infrastructure, leveling of power construction projects, and the implementationof various profit improvement measures.
Construction
Seismic isolation/Others

500

Electric power infrastructure
Operating income

43（Unit: 100 million yen）

400

21266

359

193

Operatingincome
margin338

334

2010223

180

63
1077
12

Effect of changes incopper prices+2.1 billion yen (reflecting Q1 sales)

Soaring raw material,energy, and logistics
costs

Although prices continue to rise, the Company has been able to secure
profitability through price pass-through and cost reductions.

Foreign exchange
impactNone applicable0222-10-20

10004030

270
235

200

423112300

Impact of Changes in Business Environment

979996Full-year demand-30 outlook

271617-40

FY2023 Q1

FY2023 Q2

FY2023 Q3

FY2023 Q4

FY2024 Q1

4.5%

7.8%

12.0%

9.2%

12.6%

In construction-related products, demand for wire continues at a high and stable level. In the electricpower infrastructure application, we expect to expand its market share by boosting demand against
the backdrop of the national policy and by standardizing strategic product SICONEX ® as the defacto standard, and also to levelize electric power construction projects.

SICONEX® Production Volume* When the actual result at the end of FY2023 is set at 100%

115%

140%

Electric Power Construction
Average year

Current year

H1H1135%

Q1 Result Q2 Forecast Full-year Forecast

H2H28FY2024 Q1 Results by Segment /Electronic Equipment and Components Business
High-performance products for EV is in an adjustment phase, but Q1 performance is recovering. General-purpose magnet wires for heavy
electrical appliances also remained firm. Sales increased by 6.3% YoY and profits increased by 6.6% YoY.
High-performance products
oxygen free copper
General-purpose products（Unit: 100 million yen）

2005138

10066
140
Operatingincome
margin

4

14070
17

Other high-performance products

Impact of Changes in Business Environment

Operating income

5146

52147

12973

2665
953172

Effect of changes incopper prices+1.9 billion yen (reflecting Q1 sales)

Soaring raw material,
energy, and logistics
costs

Although prices continue to rise, the Company has been able to secure
profitability through price pass-through and cost reductions.

Foreign exchange
impactNone applicable
Demand for high-performance products for EV is expected to recover in Q1,
and in Q2 it is expected to be in an adjustment phase.

-1

Image of Shipments of High-Performance Products in the Current Fiscal Year

175852475558

FY2023 Q1

FY2023 Q2

FY2023 Q3

FY2023 Q4

FY2024 Q1

3.3%

3.0%

3.7%

1.7%

3.3%

-3

Full-year demandoutlook

MiDIP®

Heater wire

High-performancemagnet wires

Slight increase
compared to FY2023

Slight increase
compared to FY2023

Large increase
compared to FY2023

H1H1-5H2H2

H1H29FY2024 Q1 Results by Segment /Communication and Industrial Devices Business
Demand for both construction and automotive-related communication cables was firm. In wire harnesses, demand for precision devices
recovered despite the impact of slowdown in the Chinese and domestic white goods consumer electronics markets. Sales increased by 12.3%
YoY and profits increased by 82.1% YoY.
Communication cable
Precision devices

Wire harness
Operating income（Unit: 100 million yen）

1003480

385727038414464357942

Impact of Changes in Business Environment
5Effect of changes incopper prices+100 million yen (reflecting Q1 sales)

3

Soaring raw material,
energy, and logistics
costs

Although prices continue to rise, the Company has been able to secure
profitability through price pass-through and cost reductions.

Foreign exchange
impact+300 million yen (reflecting Q1 sales)

1-1-3

200
Operatingincome
margin2323171721161315

FY2023 Q1FY2023 Q2

FY2023 Q3

FY2023 Q4

FY2024 Q1

4.2%

4.9%

3.4%

5.6%

6.8%

12-5 Full-year demand
outlook

Demand for communication cables for construction-related and automotive
applications was firm. Sales of wire harnesses for consumer electronics weresluggish. Demand for precision devices recovered.
Image of Shipments of Communication Cables in the Current Fiscal Year
Constructionrelated

Automotive
application

Increase compared to FY2023

Increase compared to FY2023-7
H1H2H1H210FY2024 Q1 Balance Sheet (Comparison with the end of the previous year)（Unit: 100 million yen）
Total assets
Trade receivables
Inventories
Non-current assets
Total liabilities
Trade payables
Interest-bearing debt
Total net assets
EquityEquity ratio (%)
DE ratio (%)

End-FY2023

FY2024 Q1[Inventories]
Increased in order to secure appropriate inventory inanticipation of higher copper prices and shipments
after Q2 and beyond.

Change

1,616
515
290
672

1,675
512
323
677

59
▲3335845

883
296
358

383655

759
47.0

792
781
46.6

2122
▲0.3

40

466260303

771[Interest-bearing debt]
Increased due to dividends and bonuses payments,etc.
[Equity ratio]
Equity ratio decreased by 0.3ppt. from the end of theprevious fiscal year due to an increase in inventories in
preparation for shipments after Q2 and other factors,
despite an accumulation of shareholders' equity due tothe strong performance.
[DE ratio]
DE ratio increased by 6ppt. from the end of theprevious fiscal year due to an increase in interestbearing debt, despite an increase in shareholders'equity.

<Recognition of current issues and future measures>

Measures to improve balance sheet continued, but inventories
increased to secure appropriate inventories in preparation forrising raw material prices and shipments after Q2.
Continue to improve by securing inventories at appropriate
levels and shortening the debt collection period.

11

2. Appendix

12

Progress of BD Strategy(1) SmartStream Business (news release dated July 17)
Developed a new AVR® system: ADTPS (Advanced Digital Transporter System) that transfers the inspector to the site on
VR through collaboration of Volumetric technologies owned by Wakayama University and AVR® technologies owned bySWCC.

Image of ADTPS
By incorporating holograms with volumetrictechnology in the AVR® space, it is possible totransfer the inspector to a remote or past spacein real time, just like a “door that can goanywhere”.
<For infrastructure construction sites>●Transfer inspectors from conference rooms to limited
infrastructure construction sites, such as in narrow manholes
and on steel towers●Resolving social issues such as labor shortages and improved
safetyCommercialization(target to launch in FY2025 )◆News release dated July 17
https://www.swcc.co.jp/jpn/news/detail/2024/news_6539.html

13

Progress of BD Strategy(2) SmartStream Business (news release dated August 8)
SWCC AI Technology for Predicting Occupational Accidents
Step 1

Organizing historical
accident records for AIanalysis

Step 2

Step 3

Predicting the future with a disasterprediction model・ Number of occupational accidents
・ Contents of accidents

Posting the expected outcome of occupational
accidents in internal website, etc. to alert

AI Model for Predicting
Occupational Accidents

SWCC, Tohoku Electric Power Network Co., Inc., and Hokuriku ElectricPower Transmission & Distribution Company began joint testing forpreventing occupational accidents in the electric power industry, using
SWCC's AI technologies for predicting accidents.

◆News release dated August 8
https://www.swcc.co.jp/jpn/news/images/240808AA_PRESS_RELEASE.pdf

14

https://www.swcc.co.jp/eng/company
Forward-looking statements in this document are based on information available at the time 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.
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 to the above.