CEO Message

Innovating new ideas today. Becoming the norms of tomorrow.
We will continue our transformation with the goal of achieving sustainable growth.

I am Tetsuo Komata. I have been appointed to be the Executive President and Representative Director (CEO) of SWCC Corporation. I sincerely thank you for your continuing understanding and support of our business.

Since Takayo Hasegawa, the former CEO, became CEO of SWCC in 2018, the SWCC Group has been pursuing the transformation of management under the slogan, "Change and Growth" To facilitate this change, the Group has adopted ROIC (return on invested capital) as an indicator for evaluating the profitability of business and capital efficiency. As a result of the transformation, the profitability of the SWCC Group and its financial position have improved dramatically. Its market capitalization has increased approximately tenfold compared to 2018. These changes are remarkable.

I have led the implementation of a management strategy focused on reforming the business portfolio utilizing ROIC and various active structural reforms, which we refer to as "Change" in the management structure under former CEO Hasegawa. These reforms include the increase of profitability through growth investments in the power infrastructure business, the transformation of the construction-related business into a cash cow by enhancing management efficiency, and the acquisition of businesses to achieve inorganic growth in the mobility and semiconductor sectors. Through these efforts, I have contributed to the transition to the "Growth" phase.

After seven years of Ms. Hasegawa's leadership, my role is to drive growth. I am dedicated to furthering the growth of our Energy and Infrastructure Business. Additionally, I aim to expand our operations to growth fields, such as the mobility and semiconductor sectors, to establish a second core business. We will be able to promote the growth of the SWCC Group by addressing social issues.

There are some management challenges that we need to address. My mission is to decisively implement a sustainable structural reform, which we call "change," and continue to pursue "change and growth" to transform the Company into "a solution-oriented, value-creating business," which is the SWCC Group's vision for 2030.

In FY2025, we are dedicated to executing Change & Growth SWCC 2026, our medium-term management plan for the period leading up to FY2026 (ending March 31, 2027). In the fiscal year ended March 31, 2024, we recorded net sales of 213,904 million yen, operating profit of 12,824 million yen, and ordinary profit of 12,213 million yen. These numbers exceed the targets set in the Medium-term Management Plan that began in FY2022. Consequently, we have significantly revised our operating profit target for FY2026 upward from 17.0 billion yen to 24.0 billion yen. Additionally, we have raised our initial dividend target from 150 yen per share to 180 yen per share.

The updated plan incorporates the growth driven by investments to enhance the production of SICONEX® strategic electrical power equipment components in the Energy and Infrastructure Business, addressing the rising demand for domestic power infrastructure. We have identified the data center, semiconductor and mobility sectors as areas of growth. To accelerate the expansion of business in these sectors, we will merge the Electronic Equipment and Components Business and the Communication and Industrial Devices Business to create a new business segment: the Communication and Components Business. We plan to make this new segment our second core business.

In FY2025, we will create synergy with TOTOKU Inc., which we made a subsidiary by acquiring shares of its stock in the previous fiscal year. TOTOKU Inc. has unique, competitive technologies, and a customer base for these technologies, in the areas of semiconductor inspection equipment, mobility and AI servers, which are growth areas in the Communication and Components Business. We anticipate that we will be able to enhance our marketing through cross-selling and joint development initiatives. As a result, we expect that the performance of TOTOKU Inc. will enable us to raise our targets for FY2026 in the Medium-term Management Plan.

The SWCC Group, with its diverse workforce, aims to improve employee engagement and achieve sustainable growth as a company that creates new value, based on "Innovating new ideas today. Becoming the norms of tomorrow." I hope we can count on your continuing support.

April 1, 2025
SWCC Corporation
Executive President and Representative Director (CEO)
Tetsuo Komata