Slide 1: Annual Results for the Fiscal Year Ended March 31, 2019 (FY 2018)
Annual Results for the Fiscal Year Ended March 31, 2019 (FY 2018) May 16, 2019 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 FY18 Results 3. Plans for FY19 (1) Performance Figures ・・・ 2 (1) Performance Figures ・・・ 12 (2) Orders Received ・・・ 3 (2) Orders Received ・・・ 13 (3) Net Sales ・・・ 4 (3) Net Sales ・・・ 14 (4) Operating Income ・・・ 5 (4) Operating Income ・・・ 16 (5) Cash Flow ・・・ 7 (5) NTT Group (
Slide 3: Overview of FY18 Results: Performance Figures
1. Overview of FY18 Results (1) Performance Figures ◆ In addition to the organic growth of performance, the integration of the three companies in western Japan increased sales and profit substantially. ◆ Negative goodwill (18.3 billion yen) from the integration was posted as an extraordinary loss. ■
Slide 4: Overview of FY18 Results: Orders Received
1. Overview of FY18 Results (2) Orders Received ◆ Orders received increased substantially due to the favorable results of Urban Infrastructure year on year, and the three integrated companies in western Japan successfully won orders. ○ Telecommunications (¥bn) facilities ○ Electricity supply ○ Urban
Slide 5: Overview of FY18 Results: Net Sales
1. Overview of FY18 Results (3) Net Sales ◆ Urban Infrastructure, which increased the number of orders received substantially, also increased net sales significantly. ◆ The net sales of the three integrated companies in western Japan were mostly as planned. ○ Telecommunications (¥bn) facilities ○ El
Slide 6: Overview of FY18 Results: Operating Income
1. Overview of FY18 Results (4) Operating Income ◆ SG&A expenses increased in line with the increased sales and M&A, but the improvement of the sales mix resulted in record-high income. (¥bn) Seibu Electric （Consolidated Industry adjustment） Sales mix Personnel +1.2 +1.2 ±0 expenses,etc. -1.7 Nippon
Slide 7: Trends in Group company profitability
1. Overview of FY18 Results Reference: Trends in Group company profitability ◆ The results of the group companies were favorable, and the ratio of consolidated to non-consolidated profits remained high. ■ Trends in operating profits over the past five years (consolidated/non-consolidated) (¥bn) (Rat
Slide 8: Overview of FY18 Results: Cash Flow
1. Overview of FY18 Results (5) Cash Flow ◆ Cash flow is stable and cash on hand is ample. ■ Cash flow (consolidated) (¥bn) FY15 FY16 FY17 FY18 Cash at beginning of 24.2 16.0 15.2 30.3 FY Operating activities 5.3 15.5 24.8 12.7 Investing activities -13.9 -6.0 -4.5 -17.6 Financial activities 0.3 -10.
Slide 9: Review of Medium-term management plan (FY19-20)
２. Review of Medium-term management plan（FY19-20） (1) Medium-term vision（No Change） Focus Group strengths to take total solutions to a new growth stage (2) Basic Policies（Slightly Changed） １．Creation of group synergy with the three integrated companies ２．Acceleration of solution business and expansi
Slide 10: Objective and Growth Picture
２. Review of Medium-term management plan（FY19-20） (4) Objective and Growth Picture (¥bn) Aiming for 500 billion yen in sales and further growth 500 5,000 450 4,500 Actively conduct M&A in addition 400 4,000 to organic growth 350 Growth segment Solution fields including SI and NI 3,500 300 3,000 Faci
Slide 11: Net sales and Operating Income Plans
２. Review of Medium-term management plan（FY19-20） (5) Net sales and Operating Income Plans 6,000 Net sales Operating income Operating income margin (¥bn) 9.0% 8.0% 8.2% 495.0 500.0 5,000 7.5% 7.0% 7.0% 423.7 6.6% 6.5% 4,000 6.0% 312.6 5.0% 298.8 3,000 4.0% 2,000 3.0% 2.0% 1,000 1.0% 25.6 31.7 32.0 3
Slide 12: Create synergy with three companies in western Japan
２. Review of Medium-term management plan（FY19-20） (6) Create synergy with three companies in western Japan ◆ From the cooperation with the three integrated companies in western Japan, synergy from the integration is created throughout the EXEO Group. ■ While securing the profit level, concentrating
Slide 13: Plans for FY19: Performance Figures
3. Plans for FY19 (1) Performance Figures ◆ Orders received and net sales are expected to increase substantially from the previous year, due in part to the full-year contribution of the three integrated companies in western Japan. ◆ New record profit planned through improved productivity and synergy
Slide 14: Plans for FY19: Orders Received
3. Plans for FY19 (2) Orders Received ◆ While orders received are forecast to decline for the NTT Group, we aim to increase those for system solutions substantially. ▲ Telecommunications facilities Seibu （Consolidated (¥bn) ▲KDDI ○ Electricity supply Electric adjustment） ▲ SB ○ Urban Civil Industry
Slide 15: Plans for FY19: Net Sales
3. Plans for FY19 (3) Net Sales ◆ While working on the completion of a large amount of carried-over construction work, aiming to increase sales by winning an increased number of orders. ▲ Telecommunications facilities Seibu （Consolidated (¥bn) ▲KDDI ○ Electricity supply ○ Urban Civil Electric adjust
Slide 16: Status of projects carried over
3. Plans for FY19 Reference: Status of projects carried over ◆ Work carried over will continue to increase because of the increased number of orders for large construction of Urban Infrastructure with longer construction periods. ■ Transition of amount of work carried over (consolidated) (¥bn) 196.6
Slide 17: Plans for FY19: Operating Income
3. Plans for FY19 (4) Operating Income ◆ Despite the worsening of the mix and the increase in SG&A expenses, we will aim to achieve a new record-high income, due in part to synergy following the integration. (¥bn) Strategic system Seibu Electric Industry （Consolidated investment Synergy from adjustm
Slide 18: NTT Group (Access/Network)
3. Plans for FY19 (5) NTT Group (Access/Network) ◆ Net sales from work to open an optical network are strong, and maintenance and construction for disaster countermeasures have gradually been increasing in recent years. ◆ In line with the increase in mobile traffic, NTT Building’s power-supply const
Slide 19: NTT Group (Mobile)
3. Plans for FY19 (6) NTT Group (Mobile) ◆ Expect an increase in the construction of 4G-enabled base stations for the new frequency (3.4GHz) from 2H. ◆ In preparation for the full-scale construction for 5G, a new construction system is established in which access/mobile is integrated. ■ Net sales of
Slide 20: NCCs
3. Plans for FY19 (7) NCCs ◆ Strong sales are expected to continue because of the increase in orders received in recent years. ◆ We will respond to the construction of Rakuten’s wireless base stations, which will be commenced on a full-scale basis, jointly with the three integrated companies in west
Slide 21: Investment Trends of Major Telecom Carriers
3. Plans for FY19 Reference: Investment Trends of Major Telecom Carriers (Source: Figures released by the telecommunications carriers) ■ NTT East/West ■ NTT DoCoMo LTE-related (¥bn) Optical fiber 583.4 595.2 597.1 577.9 593.7 547.9 549.6 570.0 541.0 520.0 365.4 177.0 156.0 154.0 161.0 150.0 FY15 FY1
Slide 22: Urban Infrastructure
3. Plans for FY19 (8) Urban Infrastructure ◆ Construction for 700MHzBand TV reception measures is declining, but sales are expected to remain strong. ◆ We will undertake construction in a new field, including the earth shuttle method for submarine cables. ■ Urban Infrastructure net sales (consolidat
Slide 23: System-Solutions
3. Plans for FY19 (9) System-Solutions ◆ Continue to focus on the expansion of new solutions such as new energy and Geo Solutions. ◆ Through global M&A, strengthen the base with the aim of expanding business in the APAC region. ■ System-Solutions net sales ■ Solution Map (added value expansion plan)
Slide 24: Results of orders received for new solutions
3. Plans for FY19 Reference: Results of orders received for new solutions and activities going forward 8 8 ¥7.5bn 6 6 4 ¥3.0bn 4 New energy field 2 ¥1.3bn 2 ¥1.7bn ・ Energy management service 0 0 FY18 FY19 Plan ・ Transportable lithium battery FY18 FY19 Plan ・ Smart meter Energy Viewer , Survival Pow
Slide 25: Energy Viewer and Cloud Integration Engineering
3. Plans for FY19 Reference : Energy Viewer Reference : Cloud Integration Engineering Number of bases that introduced the service Number of bases to which a proposal was made Trend of numbers on comprehensive cloud engineering, including received orders Transition of number of bases that introduced
Slide 26: Mesh-Type Beacon (new LAN exclusive for IoT)
3. Plans for FY19 Reference: Mesh-Type Beacon (new LAN exclusive for IoT) （Case） 160 152 Pending 140 POC EXBeacon 120 Under introduction/to be introduced 100 80 11 orders 6 60 received 40 4 20 0 As of July 2017 As of Dec. 2017 As of June 2018 As of Mar. 2019 FY2019 Goal Trend of numbers on mesh-type
Slide 27: Global business initiatives
3. Plans for FY19 ・ Airport ICT Reference: Global business initiatives Building business bases ・ Industrial complex ICT With EXEO GLOBAL as a starting point, expand business in the APAC region in Southeast Asia ・ Data center ICT Philippines , Thailand , Singapore ・ Expressway communication ・ Railway
Slide 28: Our M&A Strategy: Development Direction by Business Segment
4. Our M&A Strategy (1) Development Direction by Business Segment Engineering Solutions Engineering Solutions （Urban infrastructure） （NTT Group, NCCs） Implementation of system enforcement, Expanding areas of power/air conditioning and maintenance maintenance area expansion ・M&A in the power/air cond
Slide 29: Shareholder Return Policy
5. Raising Shareholders’ Value (1) Shareholder Return Policy ◆ From the FY2018 dividend, DOE was raised to around 3.5% to strengthen shareholder returns ◆ Plan to acquire own shares of 5 billion yen in 1H FY2019 ■ FY2019 planned annual dividend: 80 yen FY16 FY17 FY18 FY19 Forecast Item DOE 3.5% DOE
Slide 30: Plan for shareholder returns for FY19, etc.
5. Raising Shareholders’ Value (2) Plan for shareholder returns for FY19, etc. ■ Dividend history (per share) ■ Total shareholder return ¥80 (Total dividends + total acquisition of treasury stock) 70 Total dividends ¥13.8bn Total acquisition of treasury stock 50 10.3 5.0 46 Year-end 8.7 38 40 7.3 3.
Slide 31: Singapore-based DeClout made into a group company
6. Topics (1) Singapore-based DeClout made into a group company ◆ As part of the efforts to achieve business expansion in the APAC region, EXEO GLOBAL was founded and DeClout, a global system solution provider, was made into a group company. ■ Overview of EXEO GLOBAL ■ Business formation of DeClout
Slide 32: 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