Chiefs of Segments Message

In this business segment, we have increased sales of cables, connection materials, and installation work based on the advantages of SICONEX^® (connectors for high-voltage power cables), our brand of strategic products, to the expanding electric power market based on demand for renewable energy such as power grid reinforcement and offshore wind power. In order to capture demand as the market expands under the Japanese government's strategic plan, we will develop growth strategies from both product and human resources. With the completion of the full lineup of SICONEX^® products with voltage capacities ranging from 66 kV to 275 kV, we will finally proceed with the development of products capable of supporting extra-high voltages. In regard to human resources, we will strategically secure construction personnel as future construction capacity shortages are expected to become a bottleneck for business growth due to the declining workforce in the cable connection construction sector. Taking into account the growing demand for renewal of aging thermal power plants and the expected construction of substations in the onshore interconnected sections of large-scale offshore wind power generation, we will shift our in-house construction staff from performing 66/77 kV range work to the higher value-added extra-high voltage construction field. We will continue to leverage the competitive advantage of our products and services to steadily supplement demand in the expanding electric power market and aim to expand our business performance.

By expanding our line-up of highly competitive products and investing in boosting output, the Electrical Equipment and Components Business will continue along the path of expanding earnings in tandem with advances not only in automobiles, but also in various CASE (connected, autonomous, shared, electric) mobility technologies. Heading toward FY2026, the final year of the mid-term management plan, we will shift to a business model that offers a higher level of processing quality and higher profit margins by utilizing the brand power of MiDIP®, a high-performance oxygen-free copper. At the same time, we will actively expand into new markets that have high growth potential. Specifically, this segment will develop products including composite conductor products for the air mobility market and probe pins for the semiconductor testing equipment market to build a high value-added and highly profitable business model looking at new markets and new business areas. We will also promote production innovation projects to support new business models. The segment will prepare for the automation of its manufacturing processes aiming to start automation in FY2026

In this business segment, all departments, such as the cable, wire harness, and roller departments, operate globally. We recognize that the role of this business segment is to firmly establish the SWCC brand around the world. Until now, we have grown by providing high-quality products to Japanese manufacturers with bases mainly in China and Vietnam as a proposal-oriented and response-oriented business that solves customers' problems through products. However, in the future, in addition to retaining existing customers, we aim to further expand our business performance by developing a broader market, such as industrial equipment and automotive applications, while building partnerships with local companies as a manufacturer with a "demand-optimized quality system" that enables flexible production systems, processes, and designs to meet diverse market and customer needs.