Supplementary Financial Results Presentation for the Second Quarter of the Fiscal Year Ending March 2027 | SWCC Corporation (5805) timely disclosure

Worth reading

70In focus

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

312

¥100 million (year-on-year increase in first-half revenue)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of the fiscal year ending March 2027 (first half of fiscal 2026)11 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥1,601 100 million+24.2%

Operating profit¥179 100 million+53.6%

Ordinary income¥174 100 million+53.7%

Net income¥149 100 million+104.2%

Operating profit margin

Rate11.2

Year-on-year change (points)2.2

Full-year earnings forecast

Net Sales

¥3,330 100 million

Operating profit

¥360 100 million

Ordinary income

¥350 100 million

Profit attributable to owners of the parent

¥230 100 million

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。

Consolidated revenue48.1 %

Consolidated operating profit49.7 %

By segmentEnergy and Infrastructure: revenue 45.8%, operating profit 48.7%; Communications and Components: revenue 49.8%, operating profit 50.0%

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Semiconductor-related products exceeded the plan. Revenue and profit are both progressing ahead of typical levels.

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

First-half revenue

Impact of copper price fluctuations; growth businesses¥7 100 million
Impact of copper price fluctuations; Cash Cow business¥102 100 million
Impact of copper price fluctuations; renewal, challenges and other factors¥94 100 million

First-Half Operating Profit

Higher material, logistics and other costs¥-18 100 million
Sales price pass-through and cost reductions¥18 100 million
Temporary gain from higher copper prices¥18 100 million
Higher profitability in growth businesses¥28 100 million
Improved profitability in the Cash Cow and other businesses¥16 100 million

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Continued demand for construction work on domestic power infrastructure
Continued demand for data centers and semiconductors related to generative AI
The impact following the US midterm elections will be monitored closely

New initiatives

¥2 billion Phase 2 capacity expansion investment for SICONEX
¥2.3 billion capacity expansion investment under the medium-term management plan for e-Ribbon-related products
¥4 billion capacity expansion investment under the medium-term management plan for strategic semiconductor products
Acceleration of structural reforms in the mobility and industrial businesses
Expansion of the Regana brand
Exclusive general distributorship agreement in Japan with BMC in Thailand

Key KPIsA metric the company considers important as a management benchmark.

ROIC17.3 %
Year on year against the same period last year+3.7pt
Equity ratio48.3 %
Year on year against the same period last year+0.7 pt (versus end of previous fiscal year)
Debt-to-equity ratio40.8 %
Year on year against the same period last year+0.1 pt (versus end of previous fiscal year)
CCC79 Days
Year on year against the same period last year+4 days (versus end of previous fiscal year)
Cash Flow from Operating Activities¥279 100 million

Segment results

Energy and Infrastructure
Net Sales691
Revenue Unit¥100 million
Year-on-year revenue19.3
Operating profit122
Operating profit unit¥100 million
Year-on-year operating profit growth48.3
Communications and components
Net Sales871
Revenue Unit¥100 million
Year-on-year revenue31.1
Operating profit60
Operating profit unit¥100 million
Year-on-year operating profit growth80.5

Medium-term management plan targets

TargetGeneral-purpose winding business revenue of ¥6 billion
Target fiscal year2,030
Comparison with actual resultsTargeting 2.4 times the 2025 level

Financial targets

ROIC17.3% (full-year plan)

ROIC hurdle rateROIC spread of more than 3%

Capital expenditures

¥124 100 million

Annual Dividend

Annual¥62.2 per share

Interim¥28 per share

End of period¥34.2 per share

Payout ratio

40.1

Contents of this document
Item	Details
Document type	Earnings presentation
Fiscal Period Covered	Second quarter of the fiscal year ending March 2027 (first half of fiscal 2026)
Net Sales	¥1,601 100 million (YoY +24.2%)
Operating profit	¥179 100 million (YoY +53.6%)
Ordinary income	¥174 100 million (YoY +53.7%)
Net income	¥149 100 million (YoY +104.2%)
Operating profit margin	Rate 11.2 / Year-on-year change (points) 2.2
Full-year earnings forecast	Net Sales ¥3,330 100 million / Operating profit ¥360 100 million / Ordinary income ¥350 100 million / Profit attributable to owners of the parent ¥230 100 million
Progress against full-year forecast	Consolidated revenue 48.1 % / Consolidated operating profit 49.7 % / By segment Energy and Infrastructure: revenue 45.8%, operating profit 48.7%; Communications and Components: revenue 49.8%, operating profit 50.0%
Self-assessment against the plan	Semiconductor-related products exceeded the plan. Revenue and profit are both progressing ahead of typical levels.
Segment results	Segment Energy and Infrastructure / Net Sales 691 / Revenue Unit ¥100 million / Year-on-year revenue 19.3 / Operating profit 122 / Operating profit unit ¥100 million / Year-on-year operating profit growth 48.3, Segment Communications and components / Net Sales 871 / Revenue Unit ¥100 million / Year-on-year revenue 31.1 / Operating profit 60 / Operating profit unit ¥100 million / Year-on-year operating profit growth 80.5
Breakdown of Factors Affecting the Change	First-half revenue Factors Impact of copper price fluctuations; growth businesses / Amount ¥7 100 million, Factors Impact of copper price fluctuations; Cash Cow business / Amount ¥102 100 million, Factors Impact of copper price fluctuations; renewal, challenges and other factors / Amount ¥94 100 million / First-Half Operating Profit Factors Higher material, logistics and other costs / Amount ¥-18 100 million, Factors Sales price pass-through and cost reductions / Amount ¥18 100 million, Factors Temporary gain from higher copper prices / Amount ¥18 100 million, Factors Higher profitability in growth businesses / Amount ¥28 100 million, Factors Improved profitability in the Cash Cow and other businesses / Amount ¥16 100 million
Key KPIs	Indicator name ROIC / Value 17.3 % / Year on year against the same period last year +3.7pt, Indicator name Equity ratio / Value 48.3 % / Year on year against the same period last year +0.7 pt (versus end of previous fiscal year), Indicator name Debt-to-equity ratio / Value 40.8 % / Year on year against the same period last year +0.1 pt (versus end of previous fiscal year), Indicator name CCC / Value 79 Days / Year on year against the same period last year +4 days (versus end of previous fiscal year), Indicator name Cash Flow from Operating Activities / Value ¥279 100 million / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business Outlook	Continued demand for construction work on domestic power infrastructure, Continued demand for data centers and semiconductors related to generative AI, The impact following the US midterm elections will be monitored closely
Medium-term management plan targets	Target General-purpose winding business revenue of ¥6 billion / Target fiscal year 2,030 / Comparison with actual results Targeting 2.4 times the 2025 level
Financial targets	ROIC 17.3% (full-year plan) / ROIC hurdle rate ROIC spread of more than 3% / Equity ratio Not disclosed
Annual Dividend	Annual ¥62.2 per share / Interim ¥28 per share / End of period ¥34.2 per share
Payout ratio	40.1
Capital expenditures	¥124 100 million
New initiatives	¥2 billion Phase 2 capacity expansion investment for SICONEX, ¥2.3 billion capacity expansion investment under the medium-term management plan for e-Ribbon-related products, ¥4 billion capacity expansion investment under the medium-term management plan for strategic semiconductor products, Acceleration of structural reforms in the mobility and industrial businesses, Expansion of the Regana brand, Exclusive general distributorship agreement in Japan with BMC in Thailand

Items this document does not state (11)

Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterUnit 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 reasons cited include higher sales in growth businesses, increased demand for semiconductor-related products, demand for upgrades to power infrastructure, rising copper prices, the pass-through of higher selling prices and cost reductions, improved productivity, and improved profitability in growth businesses and the Cash Cow business.

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.