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SWCC GROUP Creating for the Future Innovating new ideas today . Becoming the norms of tomorrow . Supplementary Material for the First Quarter of the Fiscal Year Ending March 2027 August 7 , 2026 SWCC Corporation TSE PRIME : 5805
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Contents 2 1 FY2026 Q1 Overview of Financial Results 2 FY2026 Full Year Forecasts 3 Action to Implement Management that is Conscious of Cost of Capital and Stock Price 4 Appendix
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3 1 FY2026 Q1 Overview of Financial Results
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Net sales increased year on year, driven by steady performance in growth businesses as well as the impact of rising copper prices. [Status of Major Business Fields] Energy and Infrastructure: Power Infrastructure saw an increase in net sales due to capturing demand for the replacement of aging substation equipment. Construction-related sales also increased, driven by the rise in copper prices and the adjustment of sales prices to appropriate levels. Communication and Components: Sales increased due to strong performance in e-Ribbon for U.S. data centers and in the semiconductor business. Net sales FY2026 Q1 Overview of Financial Results 4 Management Environment ● While resource prices continue to soar due to the situation in the Middle East, supply chain disruptions are showing signs of easing. ● In the domestic power infrastructure sector, investment in the replacement of aging equipment and the strengthening of transmission and distribution networks remains strong. ● Overall demand for electrical wire remained at the same level as the previous year. The domestic copper base price (quarterly average) rose significantly compared with the same quarter of the previous year. ● Demand for AI semiconductors is expanding rapidly as capital investment in data centers picks up. Operating profit Operating profit increased year on year, exceeding initial Q1 expectations, due to higher earnings from growth businesses and the impact of rising copper prices. This resulted in a record-high quarterly profit.
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5 FY2026 Q1 Consolidated Statements of Income (Unit: Billion yen) Q1 FY2025 Results Q1 FY2026 Results YoY % FY2026 Full- year plan (before revision) FY2026 Full-year plan (after revision) Net sales 62.2 77.7 24.9% 325.0 330.0 Operating profit (excluding goodwill amortization) 4.8 (5.2) 8.7 (9.1) 80.4% 28.5 (30.2) 33.0 (34.7) Operating profit margin (%) (excluding goodwill amortization) 7.7 (8.4) 11.1 (11.7) ー 8.8 (9.3) 10.0 (10.5) Ordinary profit 4.8 8.7 80.7% 27.9 32.2 Profit attributable to owners of parent 3.0 5.7 92.2% 18.5 23.0 Vs. initial plan 24% Up! 16% Up! 15% Up! 2% Up! The full-year forecast has been revised upward in view of the favorable business environment expected to continue from the second quarter onward. Both sales and profits are projected to reach record highs.
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6 Q1 YoY Change Key Points of the Financial Results for FY2026 Q1 Q1 Progress rate 62.2 77.7 Q1 FY25 Q1 FY26 4.8 8.7 0 20 40 60 80 100 120 Q1 FY25 Q1 FY26 (Unit: Billion yen) Up 24.9% Up 80.4% Net sales Operating profit Revised full- year plan Average Progress Rate in Q1 for FY2021 - FY2025 FY2026 Q1 Progress Rate Net sales 330.0 23.1% 23.5% Operating profit 33.0 20.0% 26.2% (Unit: Billion yen) Progress has exceeded the average for previous years based on the revised plan.
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FY2026 Q1 Change Factors (YoY) 7 [Change factors] 1. Net sales Net sales increased year on year, driven by rising copper prices and higher sales in growth businesses. 2. Operating profit Rising material costs due to the situation in the Middle East have been offset by sales price pass-through, except for orders already under contract. Operating profit increased year over year due to one- time gains from rising copper prices, expanded earnings from growth businesses, the revitalization of cash cows, and improved productivity in underperforming businesses. Change factors for net sales Change factors for operating profit Increase in materials, logistics costs, etc. Selling price pass-through and cost reductions -0.9 +0.8 +0.7 4.8 8.7 0 100 200 300 400 500 600 700 800 900 Cash cow businessGrowth businesses Renovative and challenged businesses Q1FY25 Q1FY26 Effect of changes in copper prices 62.2 77.7 +9.7 -0.1+5.6 +0.3 Cash Cow Business and Other Productivity Improvements +1.8 Increased Revenue from Growth Businesses +1.4 Growth businesses +0.3 Cash cow business +4.8 Renovative, challenged and other business +4.6 Q1FY26Q1FY25 Temporary profits due to rising copper prices (Unit: Billion yen) (Unit: Billion yen)
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FY2026 Q1 Net Sales From Growth Businesses 8 Q1 Net Sales Q1 Status Power Infrastructure Communication Cables (Overseas) Semiconductor Applications 1.9 2.9 0 10 20 30 40 Q1FY25 Q1FY26 1.0 3.5 0 10 20 30 40 Q1FY25 Q1FY26 9.4 11.7 0 50 100 150 Q1FY25 Q1FY26 Strong demand was captured as investments continued in the replacement of aging substation equipment and the reinforcement of transmission and distribution networks. Leveraging investments to increase production of the strategic product SICONEX contributed to sales growth. Strengthening high-value-added products such as high-voltage products led to increased profitability. Strong demand for U.S. data centers was captured. The effects of investment to increase production of the strategic product e-Ribbon have contributed to sales growth since Q1. Promotion of cable products using e-Ribbon. Demand for semiconductor-related products, driven by the expanding adoption of generative AI, increased beyond initial expectations. As capital investment in data centers has accelerated, the strong demand momentum seen since the second half of last year has further increased. Sales of semiconductor-related products, especially probe pins for semiconductor inspection equipment, increased significantly. YoY 24% YoY 259% YoY 51% (Unit: Billion yen) (Unit: Billion yen) (Unit: Billion yen)
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FY2026 Q1 Results by Segment 9 17.9 21.9 9.4 11.7 3.4 6.1 -28 -18 -8 2 12 22 32 42 52 62 0 50 100 150 200 250 300 350 400 450 Q1FY25 Q1FY26 33.6 (12.5%) (18.1%) 27.3 12.5 15.0 11.4 13.5 1.9 2.9 7.2 10.5 1.4 2.6 -23 -18 -13 -8 -3 2 7 12 17 22 27 0 100 200 300 400 500 Q1FY25 Q1FY26 (4.3%) (6.2%) 41.9 32.9 Q1 Impact of Copper Prices on Net Sales: +4.3 billion yen Q1 Impact of Copper Prices on Net Sales: +5.4 billion yen (Unit: Billion yen) Communication Cables Semiconductor Applications Mobility Industrial Applications Operating profit ( ) Operating profit margin (Unit: Billion yen) Energy and Infrastructure Business Communication and Components Business Positive Factors ● The Power Infrastructure segment improved profitability by expanding sales of high-value-added products ● Construction-related products generated higher sales and profits year on year, driven by rising copper prices. Negative Factors ● Impact of soaring raw material prices due to the situation in the Middle East Positive Factors ● Sales growth was driven by increased production of the strategic product e-Ribbon ● Sales of contact probes and other products surged due to stronger-than-expected semiconductor demand at the start of the fiscal year Negative Factors ● The Industrial Applications segment experienced a slump in the wire harness market due to price competition Power Infrastructure Construction-related products Operating profit ( ) Operating profit margin
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FY2026 Q1 Balance Sheet (Comparison with the end of the previous year) 10 (Unit: Billion yen) FY2025 FY2026 Q1 Change Total assets Cash and deposits Trade receivables Inventories Non-current assets 206.9 10.8 57.9 34.3 100.5 220.4 12.6 61.8 37.6 104.2 13.5 1.9 3.9 3.3 3.7 Total liabilities Trade payables Interest-bearing debt 100.9 29.2 40.0 110.5 35.0 46.1 9.6 5.9 6.0 Total net assets Equity Equity ratio (%) 106.0 98.4 47.6 109.9 101.1 45.9 3.9 2.7 -1.7pt DE ratio (%) 40.7 45.6 4.9pt [Cash and deposits] Cash and deposits increased from the end of the previous fiscal year to maintain an appropriate cash position commensurate with the increase in sales. [Working Capital] Due to rising copper prices, accounts receivable, inventory, and accounts payable all increased from the end of the previous fiscal year. [Non-current assets] Growth investments expanded, including investments to increase production of the strategic product SICONEX. [Interest-bearing debt] Interest-bearing debt increased year on year due to an increase in working capital. By shifting a portion of our funding to commercial paper, we have reduced our borrowing costs. [Equity ratio] Although shareholders' equity increased, total assets also rose, resulting in a 1.7-point decrease in the equity ratio from the end of the previous year. [DE ratio] Interest-bearing debt also increased due to higher working capital. As a result, the DE ratio increased by 4.9 percentage points from the end of the previous fiscal year. <Recognition of Current Issues and Future Measures> Copper and raw material prices are expected to remain high, and we will work to improve CCC by reducing inventory and shortening accounts receivable collection periods through initiatives such as logistics optimization and digital transformation.
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Balance of cash and deposits at the beginning of period Operating CF Investment CF Financial CF Balance of cash and deposits at the end of period FY26 Q1 FY2026 Q1 Consolidated Cash Flows (Comparison with the previous quarter) 11 Working capital FY25 FY26 Q1 Number of days for turnover of accounts receivable 69 72 Number of days for inventory turnover 41 44 Number of days of turnover of accounts payable 35 41 CCC 75 75 (Billion yen) Balance of cash and deposits at the beginning of period Operating CF Investment CF Financial CF Balance of cash and deposits at the end of period FY25 Q1 Note: Free cash flow (FCF) = Cash flows from operating activities + Cash flows from investing activities The above Q1 cash flows are prepared using the simplified method. Including: Profit before tax 4.8 Increase/decrease in working capital 4.1 Tax -8.1 Including: Increase in interest- bearing debt -2.9 Dividend payments -2.6 Including: Profit before tax 8.9 Increase/decrease in working capital -1.3 Tax -3.9 Including: Increase/decrease in interest-bearing debt 6.0 Dividend payments -4.0 Although working capital and growth investments increased, the rise in profits led to a year-over-year improvement of 1.4 billion yen in free cash flow. Interest-bearing debt increased as we sought to expand shareholder returns and maintain an appropriate cash position in line with rising sales. (Billion yen) <Cash Conversion Cycle> CCC stood at 75 days at the end of FY26 Q1, roughly the same level as at the end of the previous fiscal year. Toward the end of FY26, we aim to shorten CCC to 71 days by reducing inventories and shortening accounts receivable collection periods through logistics optimization, digital transformation, and other measures. 12.6 FCF -0.2 FCF -1.6 2.0 -2.8 2.7 10.812.3 -5.5 -0.6-1.0 19.4 Balance of cash and deposits at the beginning of period Operating CF Balance of cash and deposits at the end of period Investment CF Financial CF Balance of cash and deposits at the beginning of period Operating CF Balance of cash and deposits at the end of period Investment CF Financial CF
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12 ２ FY2026 Full Year Forecasts
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13 Net sales 277.7 330.0 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 FY25 FY26E Operating profit 27.3 33.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 FY25 FY26E Up 18.8% Up 20.8% (Billion yen) (Billion yen) Ordinary profit Profit attributable to owners of parent Dividend/Payout ratio FY2026 Full-year Forecasts (After Upward Revision) Net sales and profit are projected to increase due to stronger-than-expected performance in growth businesses. We also plan to increase shareholder returns by raising the full-year dividend by 61 yen compared to the original plan. 32.2 billion yen (YoY: 23.2% increase) 23.0 billion yen (YoY: 22.1% increase) 311 yen/40.1% Interim: 140 yen (a 30-yen increase from the planned amount) Year-end: 171 yen (a 31-yen increase from the planned amount) Total: 311 yen (YoY: 88 yen increase) Projected Operating Profit Breakdown: 50% in the First Half, 50% in the Second Half Record high Record high Record high
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FY2026 Factors for Change (After Upward Revision) 14 Change factors for operating profit Change factors for net sales 0 500 1000 1500 2000 2500 3000 3500 4000 Cash cow businessGrowth businesses Renovative and challenged businesses FY25 FY26E Effect of changes in copper prices 277.7 330.0 +38.3 +2.2+20.9 -9.1 Growth businesses +1.7 Cash cow business +18.3 Renovative, challenged and other business +18.3 Increase in materials, logistics costs, etc. Selling price pass- through and cost reductions -4.2 +4.2 +1.7 27.3 33.0 Cash Cow Business and Other Productivity Improvements +4.2 Increased Revenue from Growth Businesses +0.5 FY26EFY25 Temporary profits due to rising copper prices Structural Reforms (Withdrawal from Seismic Isolation, Sale of AXIO) -0.8 [Change factors] 1. Net sales Net sales are expected to increase year over year due to rising copper prices and higher sales in growth businesses. 2. Operating profit Rising raw material prices due to the situation in the Middle East will be offset by sales price pass-through. Operating profit are expected to increased year over year due to one-time gains from rising copper prices, expanded earnings from growth businesses, the revitalization of cash cows, and improved productivity in underperforming businesses. (Unit: Billion yen) (Unit: Billion yen)
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15 FY2026 Business Environment Outlook and Measures(After Upward Revision) Recognition of Business Environment Strong performance continues, supported by robust demand for power grid resilience and data center construction. The supply chain disruptions caused by the situation in the Middle East have eased, and orders have exceeded initial expectations. Riding the wave of growing adoption of generative AI, demand for semiconductor-related products is expanding, including in the Chinese market. By promoting local production for local consumption, we have established an efficient production system and improved profitability. Domestic construction-related demand is expected to remain at the same level as the previous fiscal year. By steadily capturing this solid demand while promoting efficiency and labor-saving initiatives, we aim to generate stable cash flow. While demand for winding wire and seat heater wire for xEVs remains firm, the competitive environment is intensifying. We are establishing a more efficient production system. Capital investment in data centers is increasing amid growing global demand for generative AI. In response to the global optical fiber shortage, we are addressing the situation by working closely with customers and expanding our pool of suppliers. Mobility Cash Cow Business Renovative and Challenged Businesses Growth Businesses Power Infrastructure Communication (Overseas) Semiconductor Applications Construction (Energy and Communication) Industrial Applications Profitability of wire harnesses has declined due to intensified price competition in the Chinese home appliance market. We are promoting the restructuring of our production bases.
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FY2026 Growth Investments and Initiatives for Growth Businesses 16 Net Sales (YoY) Invest in growing businesses Initiatives Power Infrastructure Communication Cables (Overseas) Semiconductor Applications Upward revision ¥+2.0 billion 44.7 50.0 0 200 400 600 FY25 FY26E 7.1 19.0 0 50 100 150 200 FY25 FY26E 8.5 14.0 0 50 100 150 FY25 FY26E Upward revision ¥+2.1 billion Upward revision ¥+1.9 billion YoY 12% YoY 167% YoY 64% FY26F-30F Total investment: 10 billion yen FY26 2.5 billion yen FY26F-30F Total investment: 3 billion yen FY26 1.4 billion yen FY26F-30F Total investment: 2.5 billion yen FY26 0.9 billion yen The second-phase ¥2.0 billion investment in increasing SICONEX production will contribute to sales growth starting in the second half of the fiscal year. The ¥1.4 billion investment to increase e-Ribbon production will contribute to sales incrementally from Q1 through the second half of the fiscal year. The ¥0.5 billion investment to increase production of probe pins and other products will contribute to sales starting in the second half of the fiscal year. (Unit: Billion yen) (Unit: Billion yen) (Unit: Billion yen)
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53.6 58.0 59.5 45.7 53.0 55.5 8.5 14.0 12.1 34.1 48.0 45.9 7.3 11.8 -119 -69 -19 31 81 0 500 1,000 1,500 2,000 FY25 FY26 修正後計画 FY26 期初計画 81.6 100.0 97.0 44.7 50.0 48.0 20.3 22.5 91 111 131 151 171 191 211 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 FY25 FY26 修正後計画 FY26 期初計画 FY2026 Business Plan by Segment 17 150.0 (16.0%) (15.0%) 126.3 (6.8%) 173.0 141.9 FY26E Revised Plan / Initial Plan (5.1%) (Unit: Billion yen) (Unit: Billion yen) Energy and Infrastructure Business Communication and Components Business FY26E Revised Plan / Initial Plan 19.6 (13.5%) 145.0 173.0 Power Infrastructure Construction-related products Operating profit ( ) Operating profit margin Copper price impact:+15.4 billion yen (impact on net sales) Copper price impact:+22.9 billion yen (impact on net sales) Positive Factors ● Power Infrastructure will continue to perform well amid growing demand for data centers ● We will capture demand for ultra-high-pressure applications through the introduction of high-value-added products ● Construction Cables will see a year-on-year increase due to the impact of copper prices Negative Factors ● Demand will decline due to soaring material prices and extended construction schedules, among other factors Positive Factors ● Increased orders for the strategic product e-Ribbon and expansion of production capacity ● Increased sales and profits due to rapidly expanding demand for semiconductor-related products Negative Factors ● The mobility sector will face a worsening competitive environment for wire windings and seat heater wires ● Industrial Applications: The profitability of wire harnesses will deteriorate 10.2（5.9％) Communication Cables Semiconductor Applications Mobility Industrial Applications Operating profit ( ) Operating profit margin
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16.2 -2.5 13.7 -22.3 10.6 25.2 -7.3 17.9 -12.5 16.0 △ 300 △ 200 △ 100 0 100 200 300 FY25 FY26E FY2026 Forecast for Cash Flows Plan (After Upward Revision) 18 (Unit: Billion yen) Figures in < > indicate year- on-year increase/decrease <+9.0> <-4.8> <+4.2> <+9.8> <+5.4> Operating CF Investment CF Free CF Balance of cash and depositsFinancial CF • Operating cash flow will increase, not only due to higher profits but also because improvements in the CCC (from 75 days to 71 days) will help limit the increase in working capital, despite rising copper and raw material prices, resulting in higher cash inflow • Cash flows from investing activities will increase, mainly due to increased capital expenditures in growth businesses. • Interest-bearing debt is expected to decrease compared to the end of the previous fiscal year. <Consolidated Cash Flow>
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19 ３ Action to Implement Management that is Conscious of Cost of Capital and Stock Price
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Update on the Status of Initiatives to "Implement Management That is Conscious of the Cost of Capital and Stock Price." 20 Based on the April 28, 2026 update to the Tokyo Stock Exchange’s request regarding “Management That is Conscious of the Cost of Capital and Stock Price,” this section provides an update on the Initiatives to "Implement Management That is Conscious of the Cost of Capital and Stock Price" that we announced on May 12, 2023. ● Key Points for Promoting Further Initiatives Outlined by the Tokyo Stock Exchange (1) Medium- to Long-Term Management Policy (Vision and Growth Path) (2) How to use capital to achieve our vision (allocation and priorities) (3) Optimizing held assets to create value (4) Effective discussion and oversight at the Board of Directors level regarding items (1) through (3)
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Financial and Capital Policies in the Medium-term Management Plan 2030 21 Outperforming TOPIX (including dividends) Considering the cost of shareholders' equity to be the minimum return Expanded equity spread • ROE of 20% or more * Cost of shareholders' equity assumed to be 10% or lower Enhanced shareholder returns ・Consolidated dividend payout ratio of at least 40% and ・A consolidated DOE of 5% or more Improved cash flow • EBITDA margin of 15% or above • Improved CCC Improved asset efficiency • ROIC of 15% or more Balancing growth-oriented business portfolio management with capital efficiency Optimized cost of capital • D/E ratio between 40% and 60% • Capital adequacy ratio of around 50% • WACC controlled in the 7% range Rating of A FY2030 Targets Improved corporate value and shareholder value TSR expansion • Increase in the share price • Increased dividends Total shareholder return We will implement ROIC-Oriented Management 2.0 practices to enhance investment in growth and improve capital efficiency. While maintaining financial discipline, we will enhance the CFO organization and execute strategic capital allocation. (1) Medium- to Long-Term Management Policy (Vision and Growth Path)
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22 In addition to ROIC, a measure of efficiency, we also use EVA®, a measure of absolute value. We take the payback period into account from the perspective of how quickly an investment can contribute to profits, and continually monitor CCC. Maximize corporate value through: efficiency (ROIC) × scale (EVA®) × speed (payback period) How efficiently were profits generated relative to the capital invested? (1) Efficiency: ROIC Evaluating the “Quality” of Investments Use ROIC–WACC to determine whether value can be created (2) Size: EVA® How much value was created after deducting the cost of capital? (3) Speed: Recovery Period How quickly is cash recovered? Evaluating the “Value Created” by Investments Maximizing EVA = Maximizing Corporate Value Accelerate return on investment and build up operating cash flow Increase working capital turnover and strengthen earning power Operating CF * EVA® (annual) = (ROIC − WACC) × Capital Invested CCC = 25.2 billion yen * ¥+9.0 billion YoY Performance Is on Track and Stronger Than Last Year * EVA® is a management metric developed by Stern Stewart & Co. and is a registered trademark of HILLTOP CONSULTING GROUP, LLC. Value Created, Expansion = 71 days * -4 days YoY Increase in Operating Cash Flow, Earlier Achievement of CCC (2) How to Use Capital to Achieve Our Vision (Allocation and Priorities) FY2024 FY2025 FY2026 Forecast 11.9％ 13.6％ 15.7％ FY24 FY25 FY26 Forecast
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0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 0% 2% 4% 6% 8% 10% 12% 14% 16% FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E FY29E FY30E Base EVA Growth Investment EVA ROIC WACC 23 We will increase capital investment through growth initiatives and M&A to steadily build up EVA® generation. In addition to "ratio" metrics such as ROIC, we place emphasis on EVA® *1 (Economic Value Added), which represents the "amount" of value created (2) How to Use Capital to Achieve Our Vision (Allocation and Priorities) Unit: Billion yen Basic Policy of the Medium-Term Management Plan from FY2018: Change From FY2022: Change & Growth Medium-Term Management Plan: Transformation for Growth SWCC 2030 *1 EVA® is a management metric developed by Stern Stewart & Co. and is a registered trademark of HILLTOP CONSULTING GROUP, LLC.
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(3) Optimizing the Assets Held to Create Value (Allocation and Prioritization) Cash Allocation 24 As part of efforts to further streamline non-operating assets, we completed the sale of AXIO, a non-core business, in July 2026. In addition to continuing structural reforms, we will expand our ability to generate operating cash flow through sufficient investment in human capital and proactive investment in growth areas. We will also continue to strengthen shareholder returns. Shareholder returns policy Consolidated dividend payout ratio of at least 40% And A consolidated DOE of 5% or more Cash flows from operating activities 150.0 Fund procurement 25.0 Asset sales 5.0 Shareholder returns 44.0 Capital investment 56.0 Cash inflows Cash outflows Completion of the Sale of AXIO Inorganic investment 80.0 180.0 180.0 Raising funds with an emphasis on achieving the optimal WACC Growth investment: 18.0 Infrastructure investment: 20.0 Research investment: 7.0 DX investment: 6.0 Personnel investment, etc.: 5.0 Boosting investment in inorganic growth Plan from FY2026 to FY2030 Cash flows from operating activities 51.2 Capital investment 23.6 Cash inflows Cash outflows Shareholder returns 13.6 Asset sales 25.7 Inorganic investment 14.4 Loan Repayments, etc. 22.8 76.9 76.9 Cross-shareholders: 13.2 Non-operating assets: 12.5 Growth investment: 7.7 Infrastructure investment: 10.7 Other Investment in TOTOKU to Strengthen Growth Businesses Profitability improvement Improvement of financial position FY2025 Dividend Results Consolidated payout ratio of 35.0% Consolidated DOE of 7.3% Other: 2.5 Results from FY2022 to FY2025 Creating cash flow by increasing profits and enhancing the efficiency of the balance sheet Generating operating cash flow by streamlining and exiting unprofitable businesses and improving the profitability of core businesses Improved capital efficiency through the sale of cross-shareholdings and non- operating assets. Strengthening of shareholder returns. (Unit: Billion yen) (Unit: Billion yen)
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25 Chairman Full-time Audit and Supervisory Committee Member Female 3 Outside 5 Audit and Supervisory Committee Members Diversity in the Board of Directors with more than half the Board comprising independent outside directors 3 executive directors Composition of the Board of Directors for FY2026 5 outside directors Ratio of female directors Ratio of outside directors * Blue = male, Orange = female CEO 8 directors (including 3 women) Nomination and Compensation Committee Members 8 directors (including 5 outside directors) (4) Effective Discussion and Oversight at the Board of Directors Level Regarding Items (1) Through (3) In a third-party evaluation of the effectiveness of the Board of Directors for FY2025, the Company received a positive assessment indicating that the Board is engaging in effective discussions regarding the Medium- Term Management Plan and the cost of capital, among other matters, with a view to achieving “management that is conscious of the cost of capital and the stock price.” Governance Management Strategies Sustainability • Feedback from dialogue with shareholders and institutional investors (IR/SR) • Monitoring progress on matters resolved by the Board of Directors and important directives • Review of the Basic Policy on Internal Control and the Criteria for Submitting Matters to the Board of Directors, etc. • Initiatives to disclose the Annual Securities Report prior to the General Meeting of Shareholders • Results of the evaluation of the effectiveness of the Board of Directors • Annual Schedule for the Board of Directors for the next fiscal year, etc. • Review of the FY2025 business portfolio • Formulation of the Medium-term Management Plan • Capital policy based on the cost of capital, stock price, and shareholder composition • Discussion regarding growth investments • Discussion regarding investments in intellectual property • Review of non-financial material issues • Sustainability Committee Report Category Main Agenda Items for FY2025 Board of Directors Meetings 38% 63%
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Track Record of Selection as a Constituent of Sustainability-related Stock Indexes 26 • Promoting continuous transformation, including a review of the business portfolio • Advancing management focused on capital efficiency, with ROIC as the core metric • Transition to a solution proposal-based business and integrated implementation of DX and IP strategies • Ability to generate free cash flow through dialogue between management, outside directors, and investors • Establishment of the Sustainability Committee and identification of material issues (2022–) • Integration of KPIs and initiatives based on identified material issues with management and financial strategies • Setting FY2030 targets across 14 metrics with a view to FY2026 and beyond Selected as a Constituent of the “SOMPO Sustainability Index” for the Second Consecutive Year First-Time Selection as a Constituent of the “SX 2026” Index (Ministry of Economy, Trade and Industry and Tokyo Stock Exchange) <Key Points of the Recognition> <Key Points of the Recognition> ◆ Press release dated June 8, 2026 ◆ Press release dated July 27, 2026
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27 ４ Appendix
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Development of the "Hatomeru" Work Environment Management App — June 15 Press Release We jointly developed "Hatomeru," an app designed to support work environment management for workers in extreme heat, with Golden Field. By monitoring the work environment in real time based on heart rate and other data, we can prevent workplace accidents caused by extreme heat before they occur. 28 (1) Real-time vital sign monitoring Data is collected from a small heart rate sensor worn on the wrist and syncs with smartphones and tablets. (2) Instant risk visualization Detects changes in the heat index (WBGT) and heart rate, and provides immediate alerts via sound, vibration, and pop-up notifications to warn of risks in extreme heat environments. (3) Remote Monitoring via centralized cloud management Vital data is consolidated in the cloud. Even when working remotely or alone, both users and administrators can check the status in real time. System configuration Devices On-site worker CloudTablets or smartphones Tablet On-site workers without smartphones Notification function Extreme heat environmental risk Data management Main features Heart rate measurement Processing and storing data Data receipt and display Receiving and displaying data about (groups of) workers Manager ◆ Press release dated June 15, 2026 On-site representative Notifications with sound and vibration Pop-up notifications Retrieval of WBGT data based on positional information Notifications provided based on changes in heart rate Centralized management of health data in the cloud
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Group Companies' Technical Capabilities Earn Strong External Recognition: News from July 16 and July 28 A joint development project between Tokyo Electric Power Grid and Iwashita Industries. Out of a total of 10 presentation topics, this was awarded the Grand Prize in recognition of its significant technical contribution. Objective: Accelerating the commercialization of quantum computers by around 2030 to help address societal challenges Role: Conduct research and development on core technologies aimed at revolutionizing the overall performance of next- generation coaxial cables 29 [Award: Tokyo Electric Power Company Kaizen Grand Prix, Top Prize] [Project: Selected for the NEDO Post-5G Project] S TEC Co., Ltd. Development of “Application of the Multi-Duct HDD Method (Guided Horizontal Directional Drilling Method)” TOTOKU Research and Development of "Semi-Rigid Cables for Quantum Computing" ◆ July 16, 2026 News ◆ July 28, 2026 News HDD rig HDD Method (Newly Developed Method) Buried obstructions Exit pitEntrance pit Road
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SWCC × Faraday Factory Japan Conclusion of a Basic Agreement for the Social Implementation of the Superconducting Cable Business – August 4 News Release 30 ◆ Press release dated August 4, 2026 We are accelerating the practical application of superconducting cable systems for data centers, aiming for commercial deployment by FY2030. Demonstration test at SWCC Sagamihara Works Expansion into factory power distribution for steel and large-scale chemical plants, as well as into advanced fields such as next-generation mobility and nuclear fusion. Enabling large-capacity power supply with low voltage and high current for data centers. Reduction in wiring space, greater flexibility in facility layout, and fewer cables and reduced installation workload—all contributing to more efficient construction, expansion, and renewal work. Reducing heat generation during power transmission to about one-tenth, thereby improving facility safety and operational efficiency. Design and manufacturing of superconducting cable system Design of terminals and cooling equipment Evaluation and verification Implementation support for customer environments Basic Agreement Signed for the Commercial Deployment of the Superconducting Cable Business Material procurement Customer development Joint proposals Demonstration testing Commercial deployment Manufacture and supply of high- temperature superconducting wires (HTS tape) Provision of related technologies Aiming for commercial deployment by FY2030 Joint Development of a Superconducting Cable System for Data Centers SWCC Corporation Joint development Faraday Factory Japan LLC Intended Value Provided Future Initiatives
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https://www.swcc.co.jp/eng/ Forward-looking statements in this document are based on information available at the time of publication and contain potential risks and uncertainties. Therefore, actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Such factors that may affect actual results include economic conditions, demand trends, and fluctuations in raw material prices and exchange rates. Factors that may affect business performance include, but are not limited to, the above.