Komori
Earnings presentation5805SWCC CorporationIron & Steel, Nonferrous Metals

Supplementary Explanatory Materials for the First Quarter of the Fiscal Year Ending March 2027 Results

Revenue and profit increased in the first quarter, driven by strong performance in the growth businesses and higher copper prices. Operating profit reached a new quarterly record. In light of expectations for continued favorable business conditions, the full-year forecasts for revenue and all profit figures were revised upward.

Worth reading
77Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
50
¥100 million (amount of upward revision to the full-year revenue forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFirst quarter of the fiscal year ending March 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥777 hundred million+24.9%
Operating profit¥87 hundred million+80.4%
Ordinary income¥87 hundred million+80.7%
Net income¥57 hundred million+92.2%
Operating profit margin
Rate11.1
Results for the three months of the current quarter
Net Sales¥77.7 billion
Operating profit¥8.7 billion
Ordinary income¥8.7 billion
Profit attributable to owners of parent for the quarter¥5.7 billion
Full-year earnings forecast
Net Sales
¥3,300 hundred million
Operating profit
¥330 hundred million
Ordinary income
¥322 hundred million
Profit attributable to owners of the parent
¥230 hundred million
Annual Dividend
¥311
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales23.5%
Operating profit26.2%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Q1 exceeded the initial assumptions
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Revenue: impact of copper price fluctuations+¥9.7 billion
  • Revenue: growth businesses+¥5.6 billion
  • Revenue: cash cow businesses-¥100 million
  • Revenue: renewal/challenged businesses+¥0.3 billion
  • Operating profit: increases in materials, logistics and other costs-¥900 million
  • Operating profit: pass-through of higher selling prices and cost reductions+¥0.8 billion
  • Operating profit: temporary profit from higher copper prices+¥1.4 billion
  • Operating profit: increased earnings from growth businesses+¥1.8 billion
  • Operating profit: productivity improvements in cash cow and other businesses+¥700 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Assumed first-half/second-half progress50% in the first half, 50% in the second half
  • CCCTargeting 71 days at the end of FY26 (75 days in Q1 FY26)
  • Domestic construction-related demandAssumed to remain at the previous fiscal year's level
New initiatives
  • Second-phase capacity expansion investment for SICONEX® (¥2 billion)
  • Capacity expansion investment for e-Ribbon® (¥1.4 billion)
  • Capacity expansion investment for probe pins and other products (¥500 million)
  • Sale of Axio Co.
  • Joint development of the Hatomeru work environment management application with Golden Field Co.
  • Basic agreement with Faraday Factory Japan on the superconducting cable business for data centers
Key KPIsA metric the company considers important as a management benchmark.
  • CCC75 days
    Year on year against the same period last yearAt the level at the end of the previous fiscal year
  • Accounts receivable turnover days72 days
    Year on year against the same period last yearIncreased from 69 days in FY25
  • Inventory turnover days44 days
    Year on year against the same period last yearIncreased from 41 days in FY25
  • Accounts payable turnover days41 days
    Year on year against the same period last yearIncreased from 35 days in FY25
  • ROIC13.6 %
    Year on year against the same period last yearIncreased from 11.9% in FY24
  • Percentage of female directors38 %
  • Percentage of outside directors63 %
Segment results
  • Energy and Infrastructure Business
    Net Sales
    Q1 FY25 ¥273 hundred million / Q1 FY26 ¥336 hundred million
    Operating profit
    Q1 FY25 ¥34 hundred million / Q1 FY26 ¥61 hundred million
    Operating profit margin
    Q1 FY25 12.5% / Q1 FY26 18.1%
  • Communications and Components Business
    Net Sales
    Q1 FY25 ¥329 hundred million / Q1 FY26 ¥419 hundred million
    Operating profit
    Q1 FY25 ¥14 hundred million / Q1 FY26 ¥26 hundred million
    Operating profit margin
    Q1 FY25 4.3% / Q1 FY26 6.2%
Medium-term management plan targets
Target fiscal yearFY2030
Target value
  • ROE of at least 20%
  • ROIC of at least 15%
  • EBITDA margin of at least 15%
  • Consolidated payout ratio of 40% or higher
  • Consolidated DOE of at least 5%
  • D/E ratio of 40–60%
  • Equity ratio of approximately 50%
  • Manage WACC in the 7% range
  • A credit rating
Financial targets
Target value
  • ROE of at least 20%
  • ROIC of at least 15%
  • D/E ratio of 40–60%
  • Equity ratio of approximately 50%
  • WACC in the 7% range
Actual value
  • ROIC FY25 13.6%
  • Equity ratio of 45.9%
  • D/E ratio of 45.6%
Capital expenditures
¥360 100 million FY26–30 plan: capital investment-related expenditures including ¥18 billion in growth investment and ¥20 billion in infrastructure investment
Annual Dividend
Annual dividend per share¥311
Interim¥140
End of period¥171
Payout ratio
40.1%
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥777 hundred million (YoY +24.9%)
Operating profit¥87 hundred million (YoY +80.4%)
Ordinary income¥87 hundred million (YoY +80.7%)
Net income¥57 hundred million (YoY +92.2%)
Operating profit marginRate 11.1 / Year-on-year change (points) Not disclosed
Results for the three months of the current quarterNet Sales ¥77.7 billion / Operating profit ¥8.7 billion / Ordinary income ¥8.7 billion / Profit attributable to owners of parent for the quarter ¥5.7 billion
Full-year earnings forecastNet Sales ¥3,300 hundred million / Operating profit ¥330 hundred million / Ordinary income ¥322 hundred million / Profit attributable to owners of the parent ¥230 hundred million / Annual Dividend ¥311
Progress against full-year forecastNet Sales 23.5% / Operating profit 26.2%
Self-assessment against the planQ1 exceeded the initial assumptions
Segment resultsSegment Energy and Infrastructure Business / Net Sales Q1 FY25 ¥273 hundred million / Q1 FY26 ¥336 hundred million / Operating profit Q1 FY25 ¥34 hundred million / Q1 FY26 ¥61 hundred million / Operating profit margin Q1 FY25 12.5% / Q1 FY26 18.1%, Segment Communications and Components Business / Net Sales Q1 FY25 ¥329 hundred million / Q1 FY26 ¥419 hundred million / Operating profit Q1 FY25 ¥14 hundred million / Q1 FY26 ¥26 hundred million / Operating profit margin Q1 FY25 4.3% / Q1 FY26 6.2%
Breakdown of Factors Affecting the ChangeItem Revenue: impact of copper price fluctuations / Amount +¥9.7 billion, Item Revenue: growth businesses / Amount +¥5.6 billion, Item Revenue: cash cow businesses / Amount -¥100 million, Item Revenue: renewal/challenged businesses / Amount +¥0.3 billion, Item Operating profit: increases in materials, logistics and other costs / Amount -¥900 million, Item Operating profit: pass-through of higher selling prices and cost reductions / Amount +¥0.8 billion, Item Operating profit: temporary profit from higher copper prices / Amount +¥1.4 billion, Item Operating profit: increased earnings from growth businesses / Amount +¥1.8 billion, Item Operating profit: productivity improvements in cash cow and other businesses / Amount +¥700 million
Key KPIsIndicator name CCC / Value 75 days / Year on year against the same period last year At the level at the end of the previous fiscal year, Indicator name Accounts receivable turnover days / Value 72 days / Year on year against the same period last year Increased from 69 days in FY25, Indicator name Inventory turnover days / Value 44 days / Year on year against the same period last year Increased from 41 days in FY25, Indicator name Accounts payable turnover days / Value 41 days / Year on year against the same period last year Increased from 35 days in FY25, Indicator name ROIC / Value 13.6 % / Year on year against the same period last year Increased from 11.9% in FY24, Indicator name Percentage of female directors / Value 38 % / Year on year against the same period last year Not disclosed, Indicator name Percentage of outside directors / Value 63 % / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookItem Assumed first-half/second-half progress / Value 50% in the first half, 50% in the second half, Item CCC / Value Targeting 71 days at the end of FY26 (75 days in Q1 FY26), Item Domestic construction-related demand / Value Assumed to remain at the previous fiscal year's level
Medium-term management plan targetsTarget fiscal year FY2030 / Target value ROE of at least 20%, ROIC of at least 15%, EBITDA margin of at least 15%, Consolidated payout ratio of 40% or higher, Consolidated DOE of at least 5%, D/E ratio of 40–60%, Equity ratio of approximately 50%, Manage WACC in the 7% range, A credit rating
Financial targetsTarget value ROE of at least 20%, ROIC of at least 15%, D/E ratio of 40–60%, Equity ratio of approximately 50%, WACC in the 7% range / Actual value ROIC FY25 13.6%, Equity ratio of 45.9%, D/E ratio of 45.6%
Annual DividendAnnual dividend per share ¥311 / Interim ¥140 / End of period ¥171
Payout ratio40.1%
Capital expenditures¥360 100 million (FY26–30 plan: capital investment-related expenditures including ¥18 billion in growth investment and ¥20 billion in infrastructure investment)
New initiativesSecond-phase capacity expansion investment for SICONEX® (¥2 billion), Capacity expansion investment for e-Ribbon® (¥1.4 billion), Capacity expansion investment for probe pins and other products (¥500 million), Sale of Axio Co., Joint development of the Hatomeru work environment management application with Golden Field Co., Basic agreement with Faraday Factory Japan on the superconducting cable business for data centers
Items this document does not state (10)
Gross Profit MarginSelling, general and administrative expensesUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The main reasons were stronger-than-expected performance in the growth businesses compared with the initial assumptions for the fiscal year, growing demand for power infrastructure, communications cables for U.S. data centers, and semiconductor-related products, and the impact of higher copper prices. For operating profit, the reasons also included the pass-through of higher selling prices, increased profitability in the growth businesses, and productivity improvements in the cash cow and renewal/challenged businesses.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Supplementary Explanatory Materials for the First Quarter of the Fiscal Year Ending March 2027 Results | SWCC Corporation (5805) timely disclosure | Komori