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 by 2036.

• Focuses on business portfolio shift to growth areas, strengthening global operations, and achieving an operating profit margin of 12%+ by FY2030.

• Plans to double operating profit and net assets by 2036, with a consolidated dividend payout ratio of at least 40%.

Financial and capital policies

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

• Sets FY2030 targets: ROE 20%+, ROIC 15%+, EBITDA margin 15%+, D/E ratio 40–60%, and capital adequacy ratio ~50%.

• Plans ¥150B+ in operating cash flow over five years, with significant investments in growth, R&D, digital transformation, and inorganic growth.

• Returns free cash flow not used for growth to shareholders, aiming for a DOE of 5%+.

Business portfolio management

• Prioritizes capital efficiency and growth potential, focusing investments on high-profit growth businesses such as electric power, communications, and semiconductors.

• Cash cow businesses (construction, energy, communications) are optimized for stable cash generation and efficiency.

• Renovative and challenged businesses undergo structural reforms, with clear criteria and timelines for improvement or withdrawal.