SWCC Corporation (5805) Investor update summary

Medium-term management plan and vision

• Aims to become a global solutions company in energy and digital technologies by 2036, targeting operating profit of ¥40B by FY2030 and ¥80B by FY2036, with ROIC of 15%+ and 18%+ respectively.

• Focus on business shift to growth areas, strengthening global operations, and achieving high capital efficiency.

• FY2025 plan targets operating profit of ¥26B, ROE of 14%+, and dividend payout ratio of 37%.

• FY2030 targets include net assets of ¥150B+, dividend payout ratio of 40%+, and external rating of A.

Business portfolio and growth strategies

• Prioritizes investment in growth businesses: power infrastructure, overseas communications, and semiconductors.

• Power infrastructure strategy includes establishing domestic transformer standards, tapping new demand, and expanding overseas.

• Semiconductor business targets 17.6% CAGR in sales, leveraging advanced materials and expanding inspection equipment offerings.

• Overseas communication business focuses on e-Ribbon products for data centers, aiming for 38% CAGR and high ROIC.

• Construction cables business to remain stable, with efficiency improvements and cash generation as key goals.

Financial and capital policies

• Transitioning to ROIC-Oriented Management 2.0, emphasizing structural reforms, growth, and maximizing cash flow.

• FY2026–2030 cash allocation: ¥150B from operations, ¥56B in capital investment, ¥80B in inorganic investment, and ¥44B for shareholder returns.

• Dividend payout ratio set at 40%+ and DOE at 5%+.

• TSR expansion model combines profitability, growth expectations, and shareholder returns, targeting ROIC of 15%+ by FY2030.