Slide 1: Annual Results for the Fiscal Year Ended March 31, 2018 (FY 2017)
Annual Results for the Fiscal Year Ended March 31, 2018 (FY 2017) May 11, 2018 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 FY17 Results ・・・2 (6) NCCs ・・・20 (1) Performance Figures ・・・3 (7) Urban Infrastructure ・・・21 (2) Orders Received ・・・4 (8) System-Solutions ・・・25 (3) Net Sales ・・・5 (9) Measures for greater efficiency ･･･ 31 (4) Operating Income ・・・6 (ImprovedProductivity) (5) Cash Flow ・・・8 4
Slide 3: 1. Overview of FY17 Results
1. Overview of FY17 Results (1) Performance Figures (2) Orders Received (3) Net Sales (4) Operating Income (5) Cash Flow －2－ Annual Results for FY 2017
Slide 4: Performance Figures
1. Overview of FY17 Results (1) Performance Figures ◆ Net sales increased due to strong orders from telecom carriers and growth of orders received and sales of Urban Infrastructure ◆ Operating income reached a new high due to the effects of more efficient construction and the like ■ Overview of FY17
Slide 5: Orders Received
1. Overview of FY17 Results (2) Orders Received ◆ Exceeded the previous year due to strong Urban Infrastructure orders ◆ Decreased compared to the plan because orders received for SYSTEM-SOLUTIONS (new solutions) did not grow ■ YOY (consolidated) ■ Compared to plan (consolidated) (¥bn) ○ KDDI ○ SI ○
Slide 6: Net Sales
1. Overview of FY17 Results (3) Net Sales ◆ Increased YOY by consuming a large number of carried-over projects in each segment ◆ Decreased compared to the plan, due in part to the extension of work in NCCs and Urban Infrastructure ■ YOY (consolidated) ■ Compared to plan (consolidated) (¥bn) ー SI ▲ K
Slide 7: Operating Income
1. Overview of FY17 Results (4) Operating Income ◆ Reached a new high due to the effects of the greater efficiency of construction and the like ■ YOY (consolidated) ■ Compared to plan (consolidated) (¥bn) Elimination of projects Reduction of with deficit , etc. SG&A, etc. Others Others Improved +0.7
Slide 8: Trends in Group company profitability
1. Overview of FY17 Results Reference: Trends in Group company profitability ◆ Profits also reached a record high in Group companies ■ Trends in operating profits over the past five years (consolidated/non-consolidated) (¥bn) (Ratio of consolidated to non-consolidated profits) (1.7) (1.8) (1.8) (1.9
Slide 9: Cash Flow
1. Overview of FY17 Results (5) Cash Flow ◆ Stable cash flow ■ Cash flow (consolidated) (¥bn) FY15 FY16 FY17 Cash at beginning of FY 24.2 16.0 15.2 Operating activities 5.3 15.5 24.8 Investing activities -13.9 -6.0 -4.5 Financing activities 0.3 -10.2 -5.1 Cash at end of FY 16.0 15.2 30.3 Note: All a
Slide 10: 2. Management Integration
2. Management Integration (1) Performance Figures (2) Overview of FY17 Results of Each Company (3) Business Scale after Management Integration －9－ Annual Results for FY 2017
Slide 11: Management Integration: Performance Figures
2. Management Integration (1) Performance Figures ◆ Management integration with C-Cube, Seibu Electric Industry, and Nippon Dentsu is planned to take place as of October 1, 2018. ■ Purpose of Management Integration Further reinforcing the system for providing one-stop construction services all over
Slide 12: FY17 Results of Each Company and Combined Business Scale
2. Management Integration (2) Overview of FY17 Results of Each Company Note: Fiscal year ended March 31, 2018 (¥bn) All amounts less than ¥100m are disregarded. Figures in ( ) indicate the ratio to net sales calculated by disregarding amounts less than ¥ 1 million. Item C-Cube Seibu Electric Industr
Slide 13: 3. Plans for FY18
3. Plans for FY18 (1) Performance Figures (2) Orders Received and Net Sales (3) Operating Income (4) NTT Group (Access/Network) (5) NTT Group (Mobile) (6) NCCs (7) Urban Infrastructure (8) System-Solutions (9) Measures for greater efficiency (Improved Productivity) －12－ Annual Results for FY 2017
Slide 14: FY18 Performance Figures (Consolidated Plan)
3. Plans for FY18 (1) Performance Figures (Consolidated Plan of the Current EXEO Group) ◆ Both orders received and net sales are planned to exceed the previous year ◆ Operating income is planned to reach a new high by consuming a large number of carried-over projects and promoting measures for great
Slide 15: Orders Received and Net Sales Plan
3. Plans for FY18 (2) Orders Received and Net Sales ◆ Orders received from the NTT Group will decline, but Urban Infrastructures and System-Solutions orders are expected to increase ◆ Aim to increase net sales significantly by promoting the consumption of a large number of carried-over projects and
Slide 16: Status of projects carried over
3. Plans for FY18 Reference: Status of projects carried over ◆ Projects carried over increase significantly and reach an all-time high ■ Balance of projects carried over to next period by fiscal year (consolidated) (¥bn) 155.9 143.5 118.3 103.7 105.4 FY13 FY14 FY15 FY16 FY17 Note: All amounts less t
Slide 17: Operating Income Plan
3. Plans for FY18 (3) Operating Income ◆ Plan to post record operating income by increasing net sales and promoting measures for greater efficiency ■ Operating income (consolidated) (¥bn) Improved Sales Mix, etc. Productivity +1.0 Others -0.5 Cost for strengthening marketing, cost Up due to for stra
Slide 18: Investment Trends of Major Telecom Carriers
3. Plans for FY18 Reference: Investment Trends of Major Telecom Carriers (Source: Figures released by the telecommunications carriers) (¥bn) ■ NTT East/West ■ NTT DoCoMo Optical fiber LET-related Note: LTE-related from FY16 onward has not been published. 661.8 626.6 583.4 595.2 597.1 576.4 547.9 570
Slide 19: NTT Group (Access/Network)
3. Plans for FY18 (4) NTT Group (Access/Network) ◆ Solid performance despite emergence of trend toward slight slowdown in growth of optical access engineering work ◆ Steady demand is also expected for the renewal work of indoor network equipment and power supply works ■ Net sales of NTT Group ■ Tren
Slide 20: NTT Group (Mobile)
3. Plans for FY18 (5) NTT Group (Mobile) ◆ Construction of the LTE-Advanced radio base station for 4G will remain strong ◆ Establishing and reinforcing construction systems for receiving orders for construction work for 5G ■ Net sales of NTT Group ■ NTT DOCOMO LTE Base Stations (mobile network, cons
Slide 21: NCCs
3. Plans for FY18 (6) NCCs ◆ Both orders received and net sales have been on track to recovery since FY17 ◆ Orders are expected to be received for radio base station construction in the new frequency bands for 4G from the 2nd quarter onward ■ Net sales of NCCs (consolidated) ■ Allocation of new freq
Slide 22: Urban Infrastructure
3. Plans for FY18 (7) Urban Infrastructure ◆ Construction jobs for 700MHZ TV reception will be proceeding at full pace towards FY19 ◆ We will focus our efforts on increasing orders for large-scale electrical construction in the Tokyo metropolitan area, and the expansion of investment in power pole e
Slide 23: Other Major Construction Projects in Urban Infrastructure
3. Plans for FY18 Reference:Other Major Construction Projects in the Urban Infrastructure Business (1) Construction of electrical facilities ■ Orders Received (¥bn) 14.1 14.3 17.0 FY15 FY16 FY17 ◆Order received in the current fiscal year Note）The above photograph shows a different property. Dec.2017
Slide 24: Other Major Construction Projects in Urban Infrastructure
3. Plans for FY18 Reference:Other Major Construction Projects in the Urban Infrastructure Business ■ Orders Received (¥bn) (3) Expressway communications 4.9 3.6 2.6 FY15 FY16 FY17 (4) Disaster prevention radio ■ Orders Received (¥bn) communications 3.3 2.2 2.1 FY15 FY16 FY17 (5) Construction and ope
Slide 25: Involvement in Solar Power Generation Business
3. Plans for FY18 Reference: Involvement in Solar Power Generation Business 20,000 1,000 (kW) （Millions of yen/year） 16,000 800 12,000 600 8,000 400 4,000 200 0 0 17 plants in operation FY15 FY16 FY17 across Japan with a capacity of Output Amount of electricity sales approximately 19 MW （as of March
Slide 26: System-Solutions
3. Plans for FY18 (8) System-Solutions ◆ Fuse BPM solutions with leading-edge technologies, such as mobile and robot technologies, to improve their added value ◆ Focus efforts on expanding new solutions such as cloud and geo solutions ■ System-Solutions net sales ■ Expand the added value of the BPM
Slide 27: Orders for new solutions and activities going forward
3. Plans for FY18 Reference: Results of orders received for new solutions and activities going forward 6 ¥5.5bn 6 5 5 4 4 3 ¥2.3bn 3 ¥2.0bn 2 New energy field 2 ¥0.5bn 1 1 0 ・ Energy management service 0 FY17 FY18 Plan ・ Transportable lithium battery FY17 FY18 Plan ・ Smart meter Energy Viewer , Surv
Slide 28: Energy Viewer
3. Plans for FY18 Reference: Energy Viewer ◆ Deregulation of electric power and energy saving trend provide an opportunity to enter into the market in the new energy field ◆ “Energy Viewer” is a B2B2X business model through collaboration with the local electric power companies Won 2017 Energy Conser
Slide 29: Cloud Integration Engineering
3. Plans for FY18 Reference: Cloud Integration Engineering* Development of the market for sound solutions for enterprises and the expansion of the IoT solutions lineup (1) State of activities[FY 2017] ◆ Concept of business development of cloud integration engineering Efforts for cloud integration e
Slide 30: Mesh-Type Beacon
3. Plans for FY18 Cloud Advantages of Mesh-Type Beacon Reference: Mesh-Type Beacon （Enables easy creation of “GPS space” indoors) Sensor Sensor Beacon (i) Enables indoor positioning (space navigation） (ii)Supports sensors, etc. Beacon ・Temperature sensor, motion detector, etc. Beacon (iii) High redu
Slide 31: Global business initiatives
3. Plans for FY18 Reference: Global business initiatives ■ MG Exeo sales trends 15 Vietnam （¥100m） Philippines 10 Thailand 5 0 FY13 FY14 FY15 FY16 FY17 FY18 Plan MG Exeo (Philippines) as a base for Indonesian development in Asia including ASEAN Concluded an agreement to acquire shares ＜around 850 em
Slide 32: Measures for greater efficiency (Improved Productivity)
3. Plans for FY18 (9) Measures for greater efficiency (Improved Productivity) ◆ Measures for greater efficiency have produced a greater impact than planned in past years ◆ Continued groupwide promotion of improved productivity, cost improvements and workstyle reform ■ Enhanced profitability through
Slide 33: Promotion of Business Structure Reform
3. Plans for FY18 Reference: Image of Promotion of Business Structure Reform ◆ Achieving and implementing business improvements and work style reform as the Team EXEO (overall EXEO Group), thereby promoting transformation into a more resilient management base Profit rate increasing steadily, due in
Slide 34: Examples of improvement measures
3. Plans for FY18 Reference:Examples of improvement measures ◎Enhancement of system common platform - Automation of data input using RPA ◎Modularization of individual business processes of business divisions/branches/Group companies Goal Automation of data input using RPA Enhancement of system commo
Slide 35: 4. Raising Shareholders' Value
4. Raising Shareholders’ Value (1) Payment of More Dividends (2) Dividend Payment Plan for FY18, etc. －34－ Annual Results for FY 2017
Slide 36: Payment of More Dividends
4. Raising Shareholders’ Value (1) Payment of More Dividends ◆ Increasing the targeted DOE from 3% to 3.5% to pay more dividends ◆ Acquiring treasury stock in the first half of FY18 with an upper limit of 3.0 billion yen ■ Outline of changes to dividend policy <Targeted DOE at 3% 3.5%> Purpose Str
Slide 37: Dividend Payment Plan for FY18
4. Raising Shareholders’ Value (2) Dividend Payment Plan, etc. for FY18 ■ Dividend history (per share) ■ Total shareholder return (Total dividends + total acquisition of treasury stock) Note: The acquisition of treasury stock will be implemented flexibly. ¥64 ※ Total dividends Total acquisition of t
Slide 38: 5. Topics
5. Topics (1) Visit to Overseas Subsidiary by Minister of Internal Affairs and Communications －37－ Annual Results for FY 2017
Slide 39: Visit to Overseas Subsidiary by Minister of Internal Affairs
5. Topics (1) Visit to Overseas Subsidiary by Minister of Internal Affairs and Communications ◆ Seiko Noda, Minister of Internal Affairs and Communications, visited the training center of our consolidated subsidiary in the suburbs of Manilla in the Philippines ■ In January 2018, Minister Noda visite
Slide 40: 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