SWCC Corporation (5805) Investor update summary

Financial performance highlights

• Net sales rose 9.2% year-on-year to ¥62.2 billion, with operating profit up 1.8% to ¥5.0 billion, both tracking ahead of full-year projections.

• Growth in Communication and Components and Mobility/Semiconductor Applications offset weaker domestic Construction Cable demand.

• Profitability improved due to price pass-through, cost reductions, and synergies from the TOTOKU acquisition.

• Ordinary profit and profit attributable to owners also increased, maintaining progress rates above historical averages.

Segment performance and business drivers

• Energy and Infrastructure saw a 5.5% sales and 7.0% profit decline due to lower Construction Cable demand and withdrawal from aluminum overhead cables.

• Communication and Components segment sales jumped 27.4% and profit 26.2%, driven by strong automotive and data center cable demand and TOTOKU integration.

• e-RibbonⓇ and FLANTEC® products experienced rapid growth, with new product launches and expanded overseas partnerships.

• Mobility and Semiconductor Applications benefited from cross-selling, joint development, and expanded customer bases post-TOTOKU acquisition.

Strategic initiatives and growth outlook

• Communication and Components is positioned as a second growth pillar, focusing on high value-added products and global expansion.

• e-RibbonⓇ technology is leveraged for global data center and telecom markets, with new 16-core products and long-term overseas contracts.

• FLANTEC® targets high-speed LAN and automotive markets, with strong CAGR projections and product innovation.

• TOTOKU’s portfolio in seat heaters, contact probes, and triple insulated winding wire strengthens mobility and semiconductor market positions.