SWCC Corporation (5805) Investor presentation summary

Medium-term management plan and vision

• Aims to evolve from ROIC-Oriented Management 1.0 to 2.0, integrating structural reform with accelerated growth and maximizing cash flow for sustainable growth.

• Targets operating profit of ¥40B+ and ROIC of 15%+ by FY2030, with a vision to become a global solutions company in energy and digital technologies by 2036.

• Focuses on expanding into new business domains and global markets through business development (BD) and inorganic growth strategies.

• Plans to strengthen global operations and shift business to growth areas, aiming for an operating profit margin of 12%+ by FY2030.

Financial and capital policies

• Implements ROIC-Oriented Management 2.0 to enhance investment in growth and capital efficiency while maintaining financial discipline.

• FY2030 targets include ROE of 20%+, EBITDA margin of 15%+, and consolidated dividend payout ratio of at least 40%.

• Cash allocation prioritizes investments in growth, R&D, digital transformation, and inorganic growth, with ¥80B earmarked for M&A by FY2030.

• Aims to outperform TOPIX in total shareholder return and maintain a D/E ratio between 40%-60%.

Business portfolio management

• Focuses investments on growth businesses: electric power, overseas communications, and semiconductors, targeting high profitability and global expansion.

• Cash cow businesses like construction cables are optimized for stable cash generation and efficiency improvements.

• Renovative and challenged businesses are subject to structural reforms, with performance assessed within two years to determine retention or withdrawal.

• Business portfolio reclassified to align with growth, cash cow, and challenged segments, integrating mobility and industrial applications.