Slide 1: Medium-term Management Plan Presentation
Innovating new ideas today. Becoming the norms of tomorrow. Medium-term Management Plan Presentation Transformation for Growth SWCC 2030 March 2, 2026 TSE PRIME: 5805
Slide 2: Contents
Contents Chapter 1 Medium-term Management Plan Chapter 2 Financial and Capital Policies Chapter 3 Business Portfolio Management Chapter 4 Business Strategy Chapter 5 Sustainability － Appendix － 2
Slide 3: Chapter 1 Medium-term Management Plan
Chapter 1 Medium-term Management Plan 3
Slide 4: Message about the Development of the Medium-term Management Plan
Message about the Development of the Medium-term Management Plan: Transformation for Growth SWCC 2030 The Group has instituted structural reforms. These reforms involve changes to the business portfolio, emphasizing ROIC- oriented management. Since FY2018, the Group has greatly Medium-term improved
Slide 5: Medium-term Management Plan 2030 and a Vision for 2036
Medium-term Management Plan 2030 and a Vision for 2036 Executing the Medium-term Management Plan 2030 is a significant milestone. The SWCC Group will continue to transform and grow in order to achieve its vision for 2036: becoming a centennial company that embraces global challenges. SWCC VISION 203
Slide 6: Changes in Medium-term Management Plans
Changes in Medium-term Management Plans: Transitioning from "Change" to "Transformation for Growth " Under the new medium-term management plan, SWCC aims to enhance its ROIC-oriented management to accelerate growth and become a global company with a strong capacity for generating cash. ROIC-Oriented
Slide 7: Review of the Implementation of Medium-term Management Plan Change & Growth SWCC 2026
Review of the Implementation of Medium-term Management Plan "Change & Growth SWCC 2026" Earning power improved due to ROIC-Oriented Management 1.0. Major KPI targets are anticipated to be met ahead of schedule. In the new plan, SWCC will move forward to the next phase of growth and address the ident
Slide 8: Medium-term Management Plan 2030 Target Financial Figures
Medium-term Management Plan 2030 Target Financial Figures FY2024 FY2025 FY2030 (Medium-term (Results) (Plan) management plan) Profitability Operating profit 20.9 billion yen 26.0 billion yen 40.0 billion yen or more* * Excluding inorganic growth Expected to be ROE 14.3% 14% or higher 20% or higher C
Slide 9: Chapter 2 Financial and Capital Policies
Chapter 2 Financial and Capital Policies 9
Slide 10: Financial and Capital Policies in the Medium-term Management Plan 2030
Financial and Capital Policies in the Medium-term Management Plan 2030 We will implement ROIC-Oriented Management 2.0 practices to enhance investment in growth and improve capital efficiency. While maintaining financial discipline, we will enhance the CFO organization and execute strategic capital a
Slide 11: Transitioning from ROIC-Oriented Management 1.0 to 2.0
Transitioning from ROIC-Oriented Management 1.0 to ROIC-Oriented Management 2.0 We will deepen our management practices and transition to ROIC-Oriented Management 2.0 to accelerate structural reforms and growth, maximize cash flow, and enter a growth stage. Medium-term management plan Medium-term ma
Slide 12: Cash Allocation
Cash Allocation Creating cash flow by increasing profits and enhancing the efficiency of the balance sheet Accelerating value creation and increasing shareholder returns through sufficient investments in human capital, research and development, and digital transformation. Total investments from FY20
Slide 13: Policy to Increase TSR and Quantitative Targets
Policy to Increase TSR and Quantitative Targets We will implement ROIC-Oriented Management 2.0 practices and establish a TSR expansion model. Improvement of TSR expansion ＝ profitability (Increasing EPS) × Growth expectations (Improvement of PER) + Shareholder returns (Dividends) Implementing ROIC-O
Slide 14: Chapter 3 Business Portfolio Management
Chapter 3 Business Portfolio Management 14
Slide 15: Strengthening Business Portfolio Management
Strengthening Business Portfolio Management We will focus on both capital efficiency and growth potential while optimizing our business portfolio and implementing structural reforms to exceed the hurdle rates. Business portfolio management over the course of Business portfolio as of FY2025* the Medi
Slide 16: Business Portfolio Strategies Growth Businesses
Business Portfolio Strategies Growth Businesses We will focus our investment on growth businesses that are expected to generate high profits, to expand their business scale. Tailwind Strategic Products Strategic Growth businesses Electric power - Global electric power - SICONEX - Establishing de fac
Slide 17: Business Portfolio Strategies Cash cow Businesses
Business Portfolio Strategies Cash cow Businesses Transforming the construction business in mature markets into a stable cash-generating model Business environment Products Strategic Domestic ・General-Purpose Construction Construction (communications) Construction （energy） Construction Market Constr
Slide 18: Business Portfolio Strategies Renovative and Challenged Businesses
Business Portfolio Strategies Renovative and Challenged Businesses New We will determine the timing for assessments and investment criteria and effectively manage the Innova- Growth Renovative and challenged businesses. tive Schedule for evaluating I. ROIC spread by business (ROIC － WACC): 3% or mor
Slide 19: Chapter 4 Business Strategy
Chapter 4 Business Strategy 19
Slide 20: Business Plan
Business Plan Improve profitability through bold business portfolio transformation accompanied by deeper ROIC-oriented management Trends in net sales and profit (billion yen) 40.0 Net sales 400.0 Others 40.0 CAGR (FY25E-FY30F) Renovative and Problem Businesses 28.5 350.0 Cash cow business 26.0 325.0
Slide 21: Business Plan for Power Infrastructure Business
Growth businesses Business Plan for Power Infrastructure Business Market Forecast FY2026-FY2030 Market growth forecast Net sales target under (10,000 kw) Applications for extra-high voltage Medium-term Management Plan Opportunities lines (nationwide) (billion yen) Expansion of power demand 19000 ass
Slide 22: Growth Strategies for the Power Infrastructure Business
Growth businesses Growth Strategies for the Power Infrastructure Business Target markets of the electric Trend in expected market size power infrastructure business Data centers Data centers * SWCC estimate Data centers Total domestic demand Data centers 66 kV or higher Data centers Substations Tran
Slide 23: Growth Strategies for the Power Infrastructure Business
Growth businesses Growth Strategies for the Power Infrastructure Business Establishing de facto standards in the Tapping into new demand in the domestic Strategy I Strategy II domestic transformer market power transmission market i. Capture of demand for replacement of aging I. Further expansion in
Slide 24: Smart Stream Business and Digital Solutions
New Smart Stream Business Offering Digital Solutions business in the Power Infrastructure Business Proposing solutions to the issues facing Offering solutions to social issues on an integrated platform Strategy III featuring various applications electric power companies Solutions to Development of a
Slide 25: Business Plan for Overseas Communication Business
Growth businesses Business Plan for Overseas Communication Business Market Forecast FY2026-FY2030 Net sales target under Medium-term Management Plan Opportunities 10000 Outlook for data center server market (global) 400 (billion yen) (Unit: billion dollars) 832.6 Continued expansion in the Automotiv
Slide 26: Growth Strategies for the Overseas Communication Business (e-Ribbon)
Growth Growth Strategies for the Overseas Communication Business businesses (e-Ribbon） The global generative AI market is seeing explosive growth. Due to a surge in the construction of hyperscale data centers, the adoption of e-Ribbon for high density cabling within data centers and linking data cen
Slide 27: Business Plan of the Semiconductor Business
Growth businesses Business Plan of the Semiconductor Business Net sales target under Market Forecast FY2026-FY2030 Sales forecast for Medium-term Management Plan semiconductor inspection equipment (worldwide) (billion yen) Opportunities 15,000 200 Expansion in semiconductor demand (Unit: million USD
Slide 28: Growth Strategies in the Semiconductor Business
Growth businesses Growth Strategies in the Semiconductor Business Target markets of the This is a business with stringent quality requirements, technical expertise and high barriers to entry. Leveraging our extensive product lineup with strengths in both the pre-process and semiconductor business po
Slide 29: Growth Strategies for the Semiconductor Business
Growth businesses Growth Strategies for the Semiconductor Business Strategy I Contact probes business domain Strategy II Promoting the sales of other inspection equipment i. Production and sales expansion strategies for ⅰ. Comprehensive strategies for contact probes high frequency cables ✓ Pre-proce
Slide 30: Business Plan of Construction Cables (Energy and Communication) Business
Cash cow Business Plan of Construction Cables business (Energy and Communication) Business Net sales target under Market Forecast FY2026-FY2030 Medium-term Management Plan (billion yen) Medium-term outlook for electric Opportunities wire and cable demand (Japan) CAGR • Total demand will remain (Unit
Slide 31: Strategies for Improving CF in Construction-related Business
Cash cow business Strategies for Improving CF in Construction-related Business Pursue higher efficiency, labor-savings and increased supply capacity in construction-related business, which is positioned as a growth market, through DX-driven structural reforms, and strive for business model capable o
Slide 32: BD Strategy for Promoting Inorganic Growth (M&A)
BD Strategy for Promoting Inorganic Growth (M&A) We aim to realize the BD strategy for promoting inorganic growth (M&A) under the Medium-term Management Plan within 3 years. We will likely invest in projects that will contribute to improvement of profitability and growth potential through expansion
Slide 33: BD Strategy Overseas Business Expansion
BD strategy Overseas business expansion The SWCC Group will leverage various strategic products to accelerate overseas expansion. Exploring new business market overseas, we will aim for an overseas sales ratio of 20% by FY2030 and further increase by FY2036, and strive to be a global solutions compa
Slide 34: Business Results and Plan by Subsegment
Business Results and Plan by Subsegment Energy and Infrastructure Business Communication and Components Business New Medium-term New Medium-term 計 Management Plan Management Plan Construction Cables Communication Cables 24.4 17.6 Power Infrastructure (17%) Semiconductors (10%) 20.0 Mobility and Indu
Slide 35: Chapter 5 Sustainability
Chapter 5 Sustainability » SWCC :
Slide 36: Primary KGIs for 2030 Organized by Material Issue Type
Primary KGIs for 2030 Organized by Material Issue Type Material issues of the SWCC Group Social Issues to be Tackled by SWCC with High Priority Our future Our earth Our partnership Our people Our governance Creating new value that Reducing greenhouse Building strong Fostering a corporate Continuing
Slide 37: Strengthening Research and Development
Strengthening Research and Development To develop future energy and digital technologies Our future We aim to achieve a sustainable competitive advantage and develop Renovative solutions Technology development Internal and external co- Enhancements in the quality inspired by markets and trends × cre
Slide 38: Our Digital Transformation (DX) Strategies to Address Management Issues
Our Digital Transformation (DX) Strategies to Address Management Issues Promoting Labor Saving through Productivity Improvement Vision Transforming into a Solution-Oriented Company SWCC Group’s DX Strategy Solving Management Challenges through DX DX Business On-site Value management development crea
Slide 39: Appendix
Appendix » SWCC :
Slide 40: Social Issues Addressed by SWCC
Social Issues Addressed by SWCC Increase in Reducing Decrease in Social Aging Rapid Data power GHG the working Medium-term Management Plan issues consumption emissions infrastructure Growth population etc Semiconductor plant, data center Power plant, substation Building, housing Office, base station
Slide 41: SWCC Group Management Philosophy
SWCC Group Management Philosophy The SWCC Group Innovating new ideas today. celebrates its 90th anniversary Becoming the norms of tomorrow. during the first year of the Purpose Medium-term Management Plan. The SWCC Group strives to earn trust Management Philosophy Aims to become a global solutions W
Slide 42: Segment (Subsegment) Reclassification
Segment (Subsegment) Reclassification Comparison of New and Old Subsegments As a result of a review of the business portfolio, we reclassified the subsegments classified as growth, Cash cow and Renovative and Challenged businesses. We abolished the Seismic Isolation and others subsegment as a result
Slide 43: Materiality
Policy to Encourage Sustainability Non-financial strategies that focus on environmental, social and governance (ESG) practices will establish a strong foundation for enhancing the quality of invested capital and maximizing the results of business strategies. Establishing new norms to drive business
Slide 44: Initiative for the Realization of a Decarbonized Society
Initiative for the Realization of a Decarbonized Society Our earth We have developed the 8th Voluntary Environmental Action Plan, which is more proactive than the 7th, by incorporating the achievements of targets during FY2024. Trends in total GHG emissions and targets for Scope 1 and 2 emissions Th
Slide 45: Human Resources Strategy Story
Human Resources Strategy Story We will implement our human resources strategy, which is integrated with our management Our people strategy. These strategies will facilitate our transition into a global solutions company. This approach will help us achieve our medium-term management plan goals and wh
Slide 46: Enhancement of the Executive System
Enhancement of the Executive System A new executive system to promptly implement sustainable Our governance reforms for growth Tetsuo Komata Representative Director Executive President (CEO) Implementing ROIC-Oriented Management 2.0 practices to enter a new phase of growth Yukio Kawase Toshiharu Kam
Slide 47: Share Acquisition Strategy Leveraging Our Competitive Advantages in the Power Infrastructure Market
Share Acquisition Strategy Leveraging Our Competitive Advantages in the Power Infrastructure Market Replacement Demand for Aging Power Cables (Oil-filled power cables) 66 kV and above Transportation infrastructure and Data centers private-sector demand Power Transmission and Grid-scale energy storag
Slide 48: Structural Reform of the Industrial Applications Winding Wire Business
Structural Reform of the Industrial Applications Winding Wire Business News release dated February 9 Due to the changing business environment and a revised profit structure, the Company's Yamamoto Factory (Miyagi Prefecture) will be closed, and the sales structure for industrial applications winding
Slide 49: General Purpose Optical Fiber-related Products Consolidated at Fuji Electric Cable
General Purpose Optical Fiber-related Products Consolidated at Fuji Electric Cable News release dated December 17 Before After Purpose 1 Purpose 3 integration integration Strategic products Continuation and Manufac- Strategic products such as e-Ribbon enhancement turing such as e-Ribbon® <Expansion
Slide 50: Growth Strategy for the Power Infrastructure Business: Easy-install Cable e-Cable
Growth Strategy for the Power Infrastructure Business: Easy-install Cable “e-Cable ” As demand expands due to replacement of aging facilities and reinforcement of transmission and distribution networks, labor shortages have become a major challenge. By leveraging the SICOPLUS training program and ex
Slide 51: Labor-Saving Construction through New Installation Methods
Power Infrastructure Growth Strategy for the Power Infrastructure Business: (3) Labor-Saving Construction through New Installation Methods Three-phase Simultaneous Pull-out Method for Arc-shaped HDD (Horizontal Directional Drilling) Method Oil-Filled Cables Need: Installation of underground conduits
Slide 52: Applying 2D Codes to Products
Power Infrastructure Growth Strategy for the Power Infrastructure Business: (4) Applying 2D Codes to Products We have introduced two-dimensional codes with proprietary identification information directly onto products. We are also developing a dedicated smartphone application to read this informatio
Slide 53: https://www.swcc.co.jp/eng
https://www.swcc.co.jp/eng 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 va