Slide 1: Presentation Material for Q1 FY2025
Innovating new ideas today. Becoming the norms of tomorrow. Presentation Material for Q1 FY2025 TSE PRIME : 5805
Slide 2: 1. Company profile
1．Company profile 2
Slide 3: Company Profile
Company Profile As of March 31, 2025 Trade Name SWCC Corporation Fiscal Year End March 31, each year Established May 26, 1936 Number of 4,944(consolidated) Employees Electric wires and cables, electric power equipment parts, Line of windings, magnet wire, Business Number of optical fiber cables, rol
Slide 4: SWCC Group History
SWCC Group History 1938 1969 1979 1986 2006 2017 2021 Production and sale of cables Dip forming system commences Production and sale of heat rollers First delivery of seismic SICONEX® Brand Launch MiDIP® Brand Launch FLANTEC® Brand Launch commences for electronic copier commences isolation devices 2
Slide 5: Structural Reforms Since 2018: Initiatives and Outcomes
Structural Reforms Since 2018: Initiatives and Outcomes Past Initiatives Profitability Improvement Transition ROIC & structural reforms initiated ❶ Strengthen monitoring by outside directors 14.0 40 11.9 30 ❷ Introduction of segmentation system 12.0 17.7 10.0 12.3 13.5 14.7 15.3 12.3 14.3 20 ❸ Promo
Slide 6: Executive President and Representative Director (CEO) Profile
Executive President and Representative Director (CEO) Profile Appointed as Executive President and Representative 2025 Director (CEO) 2024 SWCC Purpose Appointed as Senior Executive Innovating new ideas today. 2023 Vice President (COO) Becoming the norms of tomorrow. Changed trade name and became a
Slide 7: Towards a New Growth Phase
Towards a New Growth Phase Under the leadership of former CEO Takayo Hasegawa, our group has promoted a new wave of management reform under the slogan "Change & Growth" with a strong focus on ROIC-based management. As a result, our profitability has significantly improved, and our financial foundati
Slide 8: Med-term Plan "Change & Growth SWCC 2026" Rolling Plan Revision
Med-term Plan "Change & Growth SWCC 2026" Rolling Plan Revision to Plan for FY2026 (consolidated) Take into consideration the changes in business circumstances, we revised upwards some target figures for the final fiscal year of the Rolling Plan of the Medium-term Management Plan from those announce
Slide 9: 2. Growth Strategy by Segment
2．Growth Strategy by Segment 9
Slide 10: FY2025 Full Year Forecasts
FY2025 Full Year Forecasts Energy and Infrastructure Business Communication and Components Business FY2025 Full Year Forecasts Construction Cables Power Infrastructure Communication Cables Mobility and Semiconductor Applications Seismic Isolation/Others Operating profit Industrial Applications Opera
Slide 11: Market of Electric Power Infrastructure Business and Growth Strategy by Voltage Class
Energy & Infrastructure Business Market of Electric Power Infrastructure Business and Growth Strategy by Voltage Class The market for our Data centers and large- Strategy by voltage class electric power business scale factories Small-scale plant 275,000V Hydroelectric power station Building an optim
Slide 12: Our Strength: SICONEX Series
Energy & Infrastructure Business Our Strength: SICONEX® Series SICONEX® solves various power infrastructure challenges with new technologies and ideas Environment-friendly, compact connector for high-voltage electric power cables using innovative isolation techniques. This product achieves different
Slide 13: Growth Strategy for the Power Infrastructure Business
Energy & Infrastructure Business Growth Strategy for the Power Infrastructure Business Enhancement of our strategic products and solutions (SICONEX®/SICOPLUS®) to meet growing demand for electric power driven by national policies Forecast of the domestic electricity market Three measures for the ele
Slide 14: Second-Phase Capacity Expansion Investment for SICONEX
Energy & Infrastructure Business Second-Phase Capacity Expansion Investment for SICONEX® May 13 News Release Amid growing demand for aging equipment replacement and grid upgrades driven by the shift to a decarbonized society, we are making a new ¥2 billion investment (Phase 2). Sales are targeted to
Slide 15: Target Customers and Sales Channels for Power Infrastructure Business
Energy & Infrastructure Business Target Customers and Sales Channels for Power Infrastructure Business We have two sales routes: 1) direct delivery of wires, components, and installation to electric power companies and private plants with substation facilities, and 2) indirect delivery of power comp
Slide 16: Elimination of Bottlenecks in the Electric Power Infrastructure Business
Energy & Infrastructure Business Elimination of Bottlenecks in the Electric Power Infrastructure Business (Securing Human Resources) Construction personnel plan Ultra-high * FY2023 results are set at 100 volatage area 275kV FY2030 130 Our company Construction FY2026 personnel FY2023 FY2024 125 100 1
Slide 17: Efforts to resolve labor shortages in anticipation of the 2024 problem
Energy and Infrastructure Business Efforts to resolve labor shortages in anticipation of the 2024 problem With the "2024 problem" of the application of overtime work hour caps looming on the horizon, the Company is promoting labor-saving, manpower-saving, and work efficiency improvements. Prod Pers
Slide 18: Further Transformation of the Construction-Related Business into a Cash Cow
Energy and Infrastructure Business Further Transformation of the Construction-Related Business into a Cash Cow 0008 000 FY2024 Cost Reduction through Increased Production Operating profit(billion yen) 8.0% Capacity at the Ibaragi Plant 6 Copper(t） Building an Efficient Production 5.4% 6.0% Sendai Sy
Slide 19: End of Manufacturing and Sale of Building Seismic Isolators
Energy and Infrastructure Business End of Manufacturing and Sale of Building Seismic Isolators Products that we will end manufacturing and selling [Objective: Driving ROIC-based management] In reforming the business structure, we will allocate management resources to businesses with higher growth po
Slide 20: Business Portfolio Shift Toward 2030
Communication and Components Business Business Portfolio Shift Toward 2030 We aim to firmly establish the Communication and Components Business as the second pillar of growth by expanding sales of high value-added products both in Japan and overseas, and by maximizing the synergies with TOTOKU. 200
Slide 21: Growth Strategy for the Communication and Components Business
Communication and Components Business Growth Strategy for the Communication and Components Business With high value-added products for generative AI, IoT, and ADAS/automated driving as strengths, the Communication Cables Business will drive the profitability growth of the Communication and Component
Slide 22: Growth Strategy of e-Ribbon: Differentiation Strategy from Competitors
Communication and Components Business Growth Strategy of e-Ribbon® : Differentiation Strategy from Competitors Leveraging our top-class technology and productivity, we are building a business model that allows us to form partnerships worldwide. By fully utilizing our open-close strategy, we will imp
Slide 23: Growth Strategy of e-Ribbon: Launch of New Products
Communication and Components Business Growth Strategy of e-Ribbon® : Launch of New Products to Meet Market Needs With the spread of generative AI technology, the increase in data volume, and the evolution of physical layer infrastructure within limited spaces, demand for high-density optical cable w
Slide 24: Growth Strategy of e-Ribbon: Expansion of Overseas Partnerships
Communication and Components Business Growth Strategy of e-Ribbon® Expansion of Overseas Partnerships With the evolution and wider use of generative AI, expectations are rising for e-Ribbon® technology, which is among the world’s top-class solutions, in the growing data center market. We will promot
Slide 25: Communication Cables Business: Growth Strategy of FLANTEC
Communication and Components Business Communication Cables Business: Growth Strategy of FLANTEC® FLANTEC®, with about a 40% domestic market share and a net sales CAGR of 8% (FY2024–FY2026 outlook), is achieving strong growth. To support the development of digital infrastructure that enables generati
Slide 26: Growth Strategy of FLANTEC: Hi-Speed, Industry
Communication and Components Business Growth Strategy of FLANTEC® : Hi-Speed, Industry With brand strength and technological capabilities as our advantages, we will capture the demand for higher speed and expand our market share. Furthermore, we will respond to the need for higher performance and in
Slide 27: Growth Strategy of FLANTEC: Mobility
Communication and Components Business Growth Strategy of FLANTEC® : Mobility By collaborating with connector manufacturers, we will expand the product lineup of high-speed in-vehicle transmission cables. In addition, through horizontal deployment to multiple customers, we will capture robust demand
Slide 28: Overview of Acquisition of Shares of TOTOKU INC. Through Joint Investment
Communication and Components Business Overview of Acquisition of Shares of TOTOKU INC. Through Joint Investment SWCC signed a share transfer agreement regarding the acquisition of shares of TOTOKU INC with TTC Holdings, L.P., which is wholly owned and managed by firm Carlyle. The SWCC Group judged t
Slide 29: Progress in the PMI Project 100 Day Plan
Communication and Components Business Progress in the PMI Project 100 Day PlanReflecting the Inclusion of TOTOKU in the Group Next medium- PMI Day100 term Identifying specific action items and reflecting them in the management Completed medium-term management plan to be announced in February plan to
Slide 30: Strategic Significance and Synergistic Effects of TOTOKU Acquisition
Communication and Components Business Strategic Significance and Synergistic Effects of TOTOKU Acquisition Further accelerate expansion into growing business areas and overseas business expansion, and turn the Communication and Components Business into a core business alongside the Energy and Infras
Slide 31: Attractive Product Portfolio of TOTOKU: Seat Heaters for Mobility
Communication and Components Business Attractive Product Portfolio of TOTOKU: Seat Heaters for Mobility [Strengths] High durability/ Strong Advantageous Conditions / Synergy Points with SWCC price competitiveness Future Market Outlook [Market Share] 30% global share (FY2024) *Assumption by our compa
Slide 32: TOTOKU: Contact Probes for Semiconductor Testing Processes
Communication and Components Business Attractive Product Portfolio of TOTOKU: Contact Probes for Semiconductor Testing Processes [Strengths] Advanced processing Global Probe Card Shipment Value Trends Advantageous Conditions technology/Large production capacity Shipment Value / Future Market Outlook
Slide 33: Synergy Points with SWCC: Products for Semiconductor Testing Processes
Communication and Components Business Synergy Points with SWCC: Products for Semiconductor Testing Processes Due to their use in semiconductor testing, this is a field with high entry barriers in terms of both customer quality requirements and technology. Centered on substrate testing applications,
Slide 34: TOTOKU: Triple Insulated Winding Wire for AI Servers
Communication and Components Business Attractive Product Portfolio of TOTOKU: Triple Insulated Winding Wire for AI Servers TOTOKU has a customer base that includes leading switching power supply manufacturers, including companies with the top global market share. For AI servers, it will capture the
Slide 35: 3. FY2025 Full Year Forecasts
3. FY2025 Full Year Forecasts 35
Slide 36: FY2025 Full Year Forecasts
FY2025 Full Year Forecasts Sales and profits are projected to increase due to continued solid demand in the energy and infrastructure market. Plan to increase the dividend by 44 yen from the previous fiscal year to 180 yen for the full year. Net sales Operating profit Ordinary profit Expected to rea
Slide 37: FY2025 Change Factors (YoY)
FY2025 Change Factors (YoY) Change factors for net sales +¥26.3 billion +¥1.3 billion FY25E [Change factors] Others 1. Net sales FY24 -¥2.3 billion -¥3.1 billion Sales are expected to Effect of changes Energy and Communication increase YoY due to solid in copper prices Infrastructure and growth in e
Slide 38: FY2025 Forecast for Cash Flows and Capital Expenditure Plan
FY2025 Forecast for Cash Flows and Capital Expenditure Plan <Consolidated Cash Flow> <Capital Expenditure Plan> Reduction of environmental Operating Investment Free Financial Balance of impact, etc. CF CF CF CF cash and deposits (Unit: billion yen) R&D 2% 5% Production <+5.4> 21% capacity 18.5 19.2
Slide 39: Performance Trends by Segment
Performance Trends by Segment I. Further strengthening of growth II. Establishment of driver businesses second growth pillar Energy and Infrastructure Business Communication and Components Business (Unit: billion yen) (Unit: billion yen) Communication cables Construction 16.8 17.0 (13.7％) Mobility a
Slide 40: 4. FY2025 Q1 Overview of Financial Results
4. FY2025 Q1 Overview of Financial Results 40
Slide 41: Key Points of the Financial Results for Q1 FY2025
Key Points of the Financial Results for Q1 FY2025 Q1 YoY Change Q1 Progress rate Demand for Construction Cables in the domestic Both net sales and operating profit remained in market declined, but both sales and profit line with projections made at the beginning of the increased, driven by the Power
Slide 42: Q1 FY2025 Consolidated Statements of Income
Q1 FY2025 Consolidated Statements of Income Net sales increased due to an increase in sales in the Communication and Components Business. However, demand for Construction Cables in the domestic market decreased given an extension of construction periods due to labor shortages. Operating profit incre
Slide 43: Q1 FY2025 Change Factors (YoY)
Q1 FY2025 Change Factors (YoY) Change factors for net sales [Change factors] +6.0 billion +¥0.01 billion Q1 FY25 1. Net sales Others As forecast at the +¥1.5 billion -¥2.2 billion beginning of the fiscal year, Q1 FY24 demand for Construction Cables in the domestic Effect of changes in ¥62.2 billion
Slide 44: Q1 FY2025 Results by Segment / Energy and Infrastructure Business
Q1 FY2025 Results by Segment / Energy and Infrastructure Business Demand for Construction Cables in the domestic market declined mainly due to the extension of construction periods reflecting the labor shortages, as projected at the beginning of the fiscal year. Products for Power Infrastructure mad
Slide 45: Q1 FY2025 Results by Segment / Communication and Components Business
Q1 FY2025 Results by Segment / Communication and Components Business In Communication Cables, both FLANTEC ® Mobility and e-Ribbon® for U.S. data centers were strong. In Mobility and Semiconductor Applications, sales expanded due to the inclusion of TOTOKU in the Group, resulting in a YoY increase i
Slide 46: FY2025 Q1 Balance Sheet
FY2025 Q1 Balance Sheet (Comparison with the end of the previous year) (Unit: billion yen) FY2024 FY2025 Q1 Change [Cash] Cash and deposits decreased due to the Total assets 197.7 186.5 -11.2 normalization of temporarily increased cash from TOTOKU’s group integration at the end of the previous fisca
Slide 47: FY2025 Q1 Cash Flow (Quarter-over-Quarter Comparison)
FY2025 Q1 Cash Flow (Quarter-over-Quarter Comparison) Despite higher tax payments, free cash flow improved thanks to increased profits and better receivables collection. Cash from TOTOKU’s consolidation was optimized for debt repayment and dividends. (Unit: billion yen) FY2024 Q1 FY2025 Q1 Opening c
Slide 48: 5. Appendix
oo tte, e > SWC ) © eo @ SROUr Creating for the Future 5. Appendix
Slide 49: Approach to Financial KPIs
Approach to Financial KPIs FY2026 Targets Toward a market capitalization of 150 billion yen Rating of A- or higher Improved cash flow • EBITDA margin of 9％ or above Expanded equity spread • Improved CCC of 80 days or less Improved • ROE of 14% or more corporate value and * Cost of shareholders' equi
Slide 50: Cash Allocation
Cash Allocation In addition to generating business revenue, we will also make progress in reducing non-operating assets in an effort to enhance growth investments and shareholder return. Additionally, for major investments such as M&A actions, we expect to apply a certain degree of leverage through
Slide 51: Reduce greenhouse gases through relentless efforts and responses
Reduce greenhouse gases through relentless efforts and responses ■ FY2024 CO2 Emissions (Scope 1 + Scope 2 and including offset through carbon credits) Renewable CO2 at our main manufacturing bases in Japan energy adoption decreased by 50% compared to FY2013 results. rate Through energy-saving initi
Slide 52: Scope 3 emissions
Scope 3 emissions Since the largest amount of emissions are associated with the purchase of materials, we are working to reduce material-derived emissions with the understanding and cooperation of our suppliers. Results of GHC emissions in FY2024 11.1 2.0% 29.8 5.5% CO₂ emissions 440.0 80.7% (1,000-
Slide 53: Human Capital Management: Shaping an Organizational Culture in Which People Shine
Human Capital Management: Shaping an Organizational Culture in Which People Shine Three Pillars of Our Human Resources Issue Direction of actions Outcome Strategy • Promoting diversity • Improving engagement • Renewing the culture (climate, Renewing the organizational culture) A mindset that Endless
Slide 54: Initiatives for Strengthening Governance
Initiatives for Strengthening Governance Year 2018 2019 2020 2021 2022 2023 2024 Organizational Company Company with an Audit and Supervisory Committee design with (from June 2019) Composition of the Board of Directors for the FY2025 a board of statutory Diversity in the Board of Directors with more
Slide 55: Assessment of sustainability
Assessment of sustainability ■Received a 'BBB' rating in the MSCI ■Selected as a B List company ESG Ratings in CDP 2024 We were selected as a B List company for "Climate We received a "BBB" rating in the MSCI ESG Ratings, which Change" in the 2024 assessment conducted by CDP, evaluates over 10,000 c
Slide 56: https://www.swcc.co.jp/eng/company
https://www.swcc.co.jp/eng/company 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