Slide 1: Annual Results for the Fiscal Year Ended March 31, 2022 (FY 2021)
Annual Results for the Fiscal Year Ended March 31, 2022 (FY 2021) May 20, 2022
Slide 2: Contents
Contents １．Overview of FY2021 Results 4. Shareholder Return (1) Financial Highlights ・・・ 4 (1) Dividends, Share Buybacks ・・・ 24 (2) Results Highlights(Orders Received, ・・・ 5 (2) Total Shareholder Return, ROE, EPS ・・・ 25 Net Sales) (3) Results Highlights(Operating Profit) ・・・ 6 (4) Results Highlights
Slide 3: 1. Overview of FY2021 Results
１．Overview of FY2021 Results ©2022 EXEO Group, Inc. All Rights Reserved. 3
Slide 4: (1) Financial Highlights
(1) Financial Highlights Achieved record-high sales (594.8 billion yen). Operating profit reached a record high of 42.3 billion yen. Year-end dividend increase (to ¥96 per year), acquisition of treasury stock (¥5 billion *) *Including 2 billion yen acquired in FY 21 among those announced in February
Slide 5: (2) Results Highlights (Orders Received, Net Sales)
(2) Results Highlights (Orders Received, Net Sales) Net Sales were the highest ever. Orders received also increased from the previous fiscal year, excluding special demand factors related to GIGA School projects. ■ Orders Received ■ Net Sales (billion yen) Increased by 2% YOY Increased by 13% YOY （E
Slide 6: (3) Results Highlights (Operating Profit)
(3) Results Highlights (Operating Profit) Operating profit reached a record high due to an increase in other segments despite a decline in profits in Urban infrastructure. ■ Operating Profit (billion yen) Improving Profits in Improving Profits in Telecoms Carriers System solutions ＋5.2 ＋2.1 Impact o
Slide 7: (4) Results Highlights (Segment Information)
(4) Results Highlights (Segment Information) (billion yen) Telecoms Carriers Urban Infrastructure System Solutions Net sales Segment profit Note: Figures in parentheses are ratio to net sales. ©2022 EXEO Group, Inc. All Rights Reserved. 7
Slide 8: 2. Forecast for FY2022 Performance
2. Forecast for FY2022 Performance ©2022 EXEO Group, Inc. All Rights Reserved. 8
Slide 9: (1) Plan Summary
(1) Plan Summary Revenue in the Telecommunications Carrier Business will decline, but the Company plans to increase revenue by taking into account further growth in the Urban Infrastructure Systems Solutions Business. Operating profit is expected to decline due to a partial reduction in construction
Slide 10: (2) Plan Summary (Operating Profit)
(2) Plan Summary (Operating Profit) Revenue and profit are expected to decrease in the Telecoms Carriers, increase and decrease in the Urban Infrastructure, and increase and increase in the System Solutions. In the System Solutions, we plan to increase both the amount of profit and the profit margin
Slide 11: (3) Plan Summary (Segment Information)
(3) Plan Summary (Segment Information) (billion yen) Telecoms Carriers Urban Infrastructure System Solutions Net sales Segment profit Note: Figures in parentheses are ratio to net sales. ©2022 EXEO Group, Inc. All Rights Reserved. 11
Slide 12: 3. Initiatives by Segment
3. Initiatives by Segment ©2022 EXEO Group, Inc. All Rights Reserved. 12
Slide 13: (1) Telecoms Carriers
(1) Telecoms Carriers ■ Trends in net sales (billion yen) FY2022 Plan Although revenues and profits will decline due to the termination of the Project on Promoting Advanced Radio Environment Improvements and a decrease in investment by telecommunications carriers, the Company plans to maintain profi
Slide 14: (1) Telecoms Carriers (Examples of Efforts to Improve Profitability)
(1) Telecoms Carriers (Examples of Efforts to Improve Profitability) To make maximum use of DX and AI, and to improve efficiency by disassembling each process. Work flow of construction Initiatives and Measures Sales order ① Design ② Send Photo AI process calculation of Efficiency is improved by AI
Slide 15: (2) Urban Infrastructure
(2) Urban Infrastructure ■ Trends in net sales (billion yen) FY2022 Plan We expect growth of more than 10% year on year due to aggressive upfront investment. Aim for medium-term profit improvement in priority areas. Main Initiatives ■ Trends in segment profit ・Full-scale Development of Renewable Ene
Slide 16: (2) Urban Infrastructure (Breakdown by Business Unit)
(2) Urban Infrastructure (Breakdown by Business Unit) ■ Trends in net sales (billion yen) ・Energy Unit ・Public infrastructure Unit ・Facility infrastructure Unit (Electricity, Environment, (Railway communications, urban- (700MHz Band TV reception Renewable energy, etc.) civil engineering, etc.) measu
Slide 17: (2) Urban Infrastructure (Energy)
(2) Urban Infrastructure (Energy) Aim to further expand new energy businesses (renewable energy, smart energy) that have increased social significance. (solar power, offshore wind power, biomass gasification power generation, etc.) ■ Initiatives for a farming type ■ Construction of DC power supply f
Slide 18: (2) Urban Infrastructure (Civil engineering)
(2) Urban Infrastructure (Civil engineering) We will strengthen our shield and propulsion technologies and take on even more difficult construction projects. ■ Efforts to develop new construction methods ■ Challenge of high difficulty construction Construction of the First Chukyo Area Tunnel MARINE
Slide 19: (3) System Solutions
(3) System Solutions ■ Trends in net sales (billion yen) FY2022 Plan We plan to grow steadily through the expansion of one-stop services, and to increase both sales and income, including the progress of overseas business. Main Initiatives ・Shift to a high-value-added business by strengthening ■ Tren
Slide 20: (3) System Solutions (Breakdown by Business Unit)
(3) System Solutions (Breakdown by Business Unit) ■ Trends in net sales (billion yen) ・Information system Unit ・Service Unit ・Overseas projects Unit (Contract development, server (Recurring business such as construction, etc.) maintenance and operation) *The breakdown of disclosure segments is set a
Slide 21: (3) System Solutions (Establishment of a strategic company)
(3) System Solutions (Establishment of a strategic company) Two strategic companies (EXEO Digital Solutions, Inc., EXEO System Management, Inc.) were established in April to lead the system solution business. To realize customer DX, we provide comprehensive support from consulting proposal to develo
Slide 22: (3) System Solutions (Overseas projects)
(3) System Solutions (Overseas projects) The portfolio in the three business segments is substantial. Profitability improved significantly with the expansion of solution provision capabilities. Aim to further expand earnings and profits while pursuing synergies among the three segments and between o
Slide 23: 4. Shareholder Return
4. Shareholder Return ©2022 EXEO Group, Inc. All Rights Reserved. 23
Slide 24: (1) Dividends, Share Buybacks
(1) Dividends, Share Buybacks Dividends to shareholders are based on a DOE of 3.5% and are maintained on a stable and continuous basis. In fiscal 2021, we increased the year-end dividend by 6 yen to 96 yen (including a commemorative dividend of 2 yen). We plan to raise the annual dividend to ¥102 in
Slide 25: (2) Total Shareholder Return, ROE, EPS
(2) Total Shareholder Return, ROE, EPS Continue to increase dividends and actively acquire treasury stock to return profits to shareholders. Continue to improve capital efficiency in order to achieve the medium-term management plan. ■ Total Shareholder Return ■ ROE/EPS (billion yen) Plan ©2022 EXEO
Slide 26: 5. Efforts to Strengthen the Management Base
5. Efforts to Strengthen the Management Base ©2022 EXEO Group, Inc. All Rights Reserved. 26
Slide 27: (1) Structural reform
(1) Structural reform Implement organizational reforms to accelerate further business growth and efficient business operations. Telecoms Carriers Urban Infrastructure System Solutions Accelerate business expansion Accelerate productivity growth Accelerate profit improvement by concentrating on growt
Slide 28: (2) M&A
(2) M&A Select partners to drive growth and execute investments strategically. Promoting PMI to Maximize Synergies. ■ Major investments in fiscal 2021 ■ M & A Target Toward sustainable growth Company name Business field Telecoms Carriers 1 IT-it CO., LTD. System Solutions Urban Infrastructure Resolu
Slide 29: (3) Implementation of ESG Management
(3) Implementation of ESG Management We have established the "Group Purpose" as the social raison d’etre of the Group based on the thoughts of our employees. "Purpose“ “2030 Vision“ "Group Purpose" Role our company should Where our company Goes in 2030. play in society. Future Create the "common sen
Slide 30: (3) Implementation of ESG Management (Environment)
(3) Implementation of ESG Management (Environment) Accelerate efforts to combat climate change to contribute to the realization of the SDGs. ■Endorsing the TCFD Recommendations and Joining the TCFD Consortium. ⇒Promote disclosure of non-financial information. ■Established the “Sustainability Promoti
Slide 31: (3) Implementation of ESG Management (Other)
(3) Implementation of ESG Management (Other) We continue to implement social and governance initiatives and have received external evaluations. ■ Approved as a stock in MSCI Japan ESG Select Leaders Index MSCI selects companies with excellent ESG evaluation from the top 700 stocks in Japan. ■Selecte
Slide 32: (4) Status of Efforts in Each Theme
(4) Status of Efforts in Each Theme Steadily implementing initiatives to strengthen the management foundation set forth in the Medium-Term Management Plan. Theme Main Initiatives Theme Main Initiatives ・On-site inspection using network cameras Safety, ・Issuance of green bonds ・Visualization of safet
Slide 33: 6. Topics
6. Topics ©2022 EXEO Group, Inc. All Rights Reserved. 33
Slide 34: (1) Wins Gold Medal at National Skills Competition Japan
(1) Wins Gold Medal at National Skills Competition Japan (human resources development) In the National Skills Competition Japan, Mizutani, an employee of the Company, won a Gold Medal in the Information Network category. This is the ninth time, and the third consecutive year that an employee of the
Slide 35: (2) Employment of foreigners with specific skills
(2) Employment of foreigners with specific skills On April 15, five skilled foreign nationals with Filipino nationality joined the company. It will be the first time for our company's electrical communication field to recruit successful foreign applicants. The entry was finally realized due to the r
Slide 36: (Reference) Business Unit Details
(Reference) Business Unit Details Segments Business Unit Business Focus Access engineering Access work and civil engineering work for the NTT Group NTT Group NTT Unit Network engineering work for the NTT Group Telecoms Network engineering Carriers engineering ENGINEERING-SOLUTIONS Mobile engineering
Slide 37: 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 UR
Slide 38: Engineering for Fusion
Engineering for Fusion Connecting our world - to all our tomorrows EXEO