SWCC Corporation (5805) Investor update summary

FY2025 full year forecasts

• Sales projected to rise 9.3% YoY to ¥260.0 billion, with operating profit up 17.0% to ¥24.5 billion, both expected to reach record highs.

• Ordinary profit forecasted at ¥23.5 billion (up 108.5% YoY), and profit attributable to owners at ¥15.0 billion (up 31.6% YoY).

• Dividend to increase by ¥44 to ¥180 per share, with a payout ratio of 35.5%.

• ROIC expected at 12.3%, achieving FY26 target ahead of schedule.

Business environment and measures

• Limited impact from U.S. tariffs due to low export exposure; ongoing monitoring of global trade risks.

• Strong demand in energy, infrastructure, and communication cables, with investments to expand SICONEX® production.

• Expansion of global sales for optical fiber ribbon e-Ribbon® and FLANTEC® automotive cables.

• Downstream strategies accelerated in seat heater wire and semiconductor test probe pin markets via TOTOKU acquisition.

• Production structure optimization and cost reduction initiatives in response to weak industrial demand.

Segment reorganization and growth strategy

• Transition to a two-segment structure: Energy & Infrastructure and Communication & Components, integrating TOTOKU.

• Communication & Components positioned as a new growth pillar, focusing on mobility, semiconductors, and global expansion.

• SICONEX® capacity expansion with ¥2 billion investment, targeting 220% sales growth by FY2026.

• TOTOKU acquisition (51% stake) to drive synergies in automotive, semiconductor, and high-performance wire markets.