Slide 1: Annual Results for the Fiscal Year Ended March 31, 2015 (FY 2014)
Annual Results for the Fiscal Year Ended March 31, 2015 (FY 2014) May 12, 2015 Building a better, brighter future together Total ICT Solutions: Contributing to the Realization of a Brighter Future by Bringing People Together and Forming Connections with Society URL: http://www.exeo.co.jp/overseas/in
Slide 2: Contents
Contents 1. Overview of FY14 Results ・・・3 (6) NTT Group (Access/Network) ・・・19 (1) Performance Figures ・・・4 (7) NTT Group (Mobile) ・・・20 (2) Orders Received ・・・5 (8) Non-NTT New Common Carriers (NCCs) ・・・21 (3) Net Sales ・・・6 (9) Environmental and Social Infrastructure ・・・22 (4) Operating Income ・・・
Slide 3: 1. Overview of FY14 Results
1. Overview of FY14 Results (1) Performance Figures (2) Orders Received (3) Net Sales (4) Operating Income (5) Cash Flow －3－ Annual Results for FY 2014
Slide 4: Performance Figures
1. Overview of FY14 Results (1) Performance Figures ◆ Orders received and sales both down due to effects of reduced investment by telecom carriers, etc. ◆ Decrease in profits despite continued efficiency measures due to reduced sales, deterioration in profits from some construction, etc. ■ Overview
Slide 5: Orders Received
1. Overview of FY14 Results (2) Orders Received ◆ Down YOY due to reduction in NTT Group orders, despite substantial growth in Environmental and Social Infrastructure ◆ Down compared to plan due to effects of reduced investment by telecom carriers, etc. ■ YOY (consolidated) ■ Compared to plan (conso
Slide 6: Net Sales
1. Overview of FY14 Results (3) Net Sales ◆ Down YOY due to reduction in NTT Group, etc., despite increase in Environmental and Social Infrastructure ◆ Down compared to plan because of stagnation in orders received ■ YOY (consolidated) ■ Compared to plan (consolidated) (¥bn) ○ Public works orders ●
Slide 7: Operating Income
1. Overview of FY14 Results (4) Operating Income ◆ Reduction due to reduced sales and deterioration in profits from some construction, etc., despite results of increased efficiency becoming visible ■ YOY (consolidated) ■ Compared to plan (consolidated) (¥bn) Down due to Deterioration in profits from
Slide 8: Trends in Group company profitability
1. Overview of FY14 Results Reference: Trends in Group company profitability ◆ Group company profits at high level despite reduction in non-consolidated profits ■ Trends in operating profits over the past five years (consolidated/non-consolidated) (¥bn) (Ratio of consolidated to non-consolidated pro
Slide 9: Cash Flow
1. Overview of FY14 Results (5) Cash Flow ◆ Stable cash flow ■ Cash flow (consolidated) (¥bn) FY12 FY13 FY14 Cash at beginning of FY 12.3 14.6 16.2 Operating activities 7.1 9.8 23.1 Investing activities -2.1 -7.4 -2.8 Financing activities -3.0 -0.9 -12.3 Cash at end of FY 14.6 16.2 24.2 Note: All am
Slide 10: 2. Plans for FY15
2. Plans for FY15 (1) Medium-Term Management Plan (FY13–FY15) (2) Performance Figures (3) Orders Received and Net Sales (4) Operating Income (5) Investment Trends of Major Telecom Carriers (6) NTT Group (Access/Network) (7) NTT Group (Mobile) (8) Non-NTT New Common Carriers (NCCs) (9) Environmental
Slide 11: Medium-Term Management Plan (FY13–FY15)
2. Plans for FY15 (1) Medium-Term Management Plan (FY13–FY15) ◆ Return to increased income and increased profits through expansion of non-NTT projects and promotion of efficiency measures ■ Medium-term vision Developing total ICT solutions on a Group-wide basis to create value and build a solid base
Slide 12: Reference: FY20 outlook
2. Plans for FY15 Reference: FY20 outlook ◆ To become a ¥400 billion company in FY20 ◆ To promote reconstruction of the business portfolio and grow the solutions business into a second pillar FY15 FY20 15% 25% Expansion of sales and business ¥305.0bn 60% domains by development into ¥400.0bn 25% new
Slide 13: Reference: FY20 outlook targets
2. Plans for FY15 Reference: FY20 outlook ◆ 基本方針 ■ Increase corporate value through sustained expansion of sales/creation of profits and improved capital efficiency ■ Achievements and targets FY14 FY15 FY20 Actual Plan Target Net sales \300.9bn \305.0bn \400.0bn Operating income \18.3bn \21.0bn \30.
Slide 14: Plans for FY15: Performance Figures
2. Plans for FY15 (2) Performance Figures ◆ Completed processing of projects with deficit and return to increased income and profits ■ Plans for FY15 (consolidated) (¥bn) FY14 FY15 Actual Plan YOY A B B/A Orders received 301.4 310.0 103% Net sales 300.9 305.0 101% (11.9%) (12.7%) Gross profit 35.7 3
Slide 15: Orders Received and Net Sales
2. Plans for FY15 (3) Orders Received and Net Sales ◆ Expansion of solutions business, including new energy, cloud, security, etc. ◆ Return to increased income against a backdrop of vigorous investment in environmental/social infrastructure and IT ■ Orders received (consolidated) ■ Net sales (consol
Slide 16: Status of projects carried over
2. Plans for FY15 Reference: Status of projects carried over ◆ Maintain high level on a par with previous term ■ Balance of projects carried over to next period by fiscal year (consolidated) (¥bn) 117.9 105.4 103.7 101.0 87.7 85.6 FY10 FY11 FY12 FY13 FY14 FY15 Note: All amounts less than ¥100m are d
Slide 17: Operating Income
2. Plans for FY15 (4) Operating Income ◆ Record profits through elimination of projects with deficit and promotion of efficiency measures ■ Operating income (consolidated) (¥bn) Elimination of projects with deficit, etc. +2.6 Improved efficiency +1.0 Others -1.4 21.0 Up due to increase in sales ● Ex
Slide 18: Investment Trends of Major Telecom Carriers
2. Plans for FY15 (5) Investment Trends of Major Telecom Carriers ■ NTT East/West ■ NTT DoCoMo (¥bn) 784.1 753.7 754.9 726.8 703.1 690.7 661.8 626.6 630.0 590.0 387.8 406.7 366.0 304.0 291.0 263.0 224.0 205.0 218.9 92.3 FY11 FY12 FY13 FY14 FY15 Plan FY11 FY12 FY13 FY14 FY15 Plan Optical fiber 合計 LTE
Slide 19: NTT Group (Access/Network)
2. Plans for FY15 (6) NTT Group (Access/Network) ◆ Continuing downward trend for fixed-line network ◆ Profits secured by streamlining business ■ Net sales of NTT Group ■ NTT facilities management (fixed-line related) (fixed-line network, consolidated) 【Net sales (consolidated)】 （¥bn） (¥bn) 5 130.4 0
Slide 20: NTT Group (Mobile)
2. Plans for FY15 (7) NTT Group (Mobile) ◆ LTE-Advanced construction work at full pace ◆ Downgrading of project scale, noticeable trend toward concentration in large cities ■ Net sales of NTT Group ■ NTT DOCOMO network development (mobile network, consolidated) FY14 FY15 FY16 FY17 (¥bn) ＬＴＥ ＬＴＥ-Ａｄｖａ
Slide 21: Non-NTT New Common Carriers (NCCs)
2. Plans for FY15 (8) Non-NTT New Common Carriers (NCCs) ◆ Further expansion of share of projects aimed at NCCs ◆ Public project targets narrowed down and proactive development of business ■ Non-NTT Telecom Engineering net sales ■ Government-sector telecom projects (consolidated) Trends in orders re
Slide 22: Environmental and Social Infrastructure
2. Plans for FY15 (9) Environmental and Social Infrastructure ◆ Redevelopment of Tokyo metropolitan area and elimination of power poles at full speed in readiness for Tokyo Olympics ◆ Steady expansion in operation and maintenance management of waste-processing plants ■ Environmental and Social Infra
Slide 23: SYSTEM-SOLUTIONS
2. Plans for FY15 (10) SYSTEM-SOLUTIONS ◆ Making full use of high technological strength and plentiful human resources to expand SI business ◆ New solutions to become new business pillar ■ SYSTEM-SOLUTIONS net sales ■ SI (systems integration) business (consolidated) Further business expansion with h
Slide 24: New solutions business performance and future initiatives
2. Plans for FY15 Reference: New solutions business performance and future initiatives 3 2.5b 2.5 2 2.0b 2.5 2 New energy 1.5 1 800m 1.5 0.5 1 400m field 0 0.5 14 15 0 ・Regional power companies ・Power Producers and 14 15 Suppliers (PPSs) ・HEMS, BEMS Solutions field Global, 9 Orders 8.5b ・ EXTravel (
Slide 25: Guide to Daigo Temple, Kyoto
2. Plans for FY15 Reference: Guide to Daigo Temple, Kyoto ■Multilingual guide for visitors to Japan Hospitality using Wi-Fi, GPS, and AR functions AR ■Introduction to the temple’s hidden contents GPS ■Automatic voice guide on smartphone screen ■Directions to temple emergency shelter in case of natur
Slide 26: Global business initiatives
2. Plans for FY15 Reference: Global business initiatives ■ MG Exeo sales trends （¥100m） 1peso≒¥2.7 10 5 0 FY10 FY11 FY12 FY13 FY14 FY15 Plan MG Exeo (Philippines) as a base for development across SE Asia Development of ICT technology educators in the Philippines → spread to other SE Asian countries
Slide 27: Improved Productivity
2. Plans for FY15 (11) Improved Productivity ◆ FY14 targets achieved ◆ Continued measures to improve profits ■ Enhanced profitability through cost reductions ＦＹ 2012 2013 2014 2015 ¥1.0bn ¥1.5bn ¥1.5bn ¥1.0bn Improvement Aims (cumulative ¥2.0bn) (cumulative ¥2.0bn) (cumulative ¥5.0bn) (cumulative ¥6
Slide 28: Reorganization of Group companies
2. Plans for FY15 Reference: Reorganization of Group companies ◆ Accelerated reorganization of Group companies aimed at improved streamlining and optimization of resources ■ Trends in number of subsidiaries (excluding WAKO ENGINEERING, Ikeno Tsuken, and Daiwa Densetsu) 34 companies 33 companies ◇ Me
Slide 29: 3. Raising Shareholders' Value
3. Raising Shareholders’ Value (1) Payment of Dividends －29－ Annual Results for FY 2014
Slide 30: Payment of Dividends
3. Raising Shareholders’ Value (1) Payment of Dividends ◆ Continuing proactive payment of dividends ◆ Acquisition of ¥500m of treasury stock, aiming for continued improvement of EPS ■ Dividend history (per share) ■ Total shareholder return (Total dividends + total acquisition of treasury stock) 32 \
Slide 31: Disclaimer Regarding Forward-Looking Statements
Disclaimer Regarding Forward-Looking Statements Management of the Company has made estimates and assumptions relating to financial forecasts based on information available as of the reporting date. Actual results could differ from those estimates. 3-29-20 Shibuya, Shibuya-ku, Tokyo 150-0002 JAPAN ht