Slide 1: Results for the Six Months Ended September 30, 2019
Results for the Six Months Ended September 30, 2019 November 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/index.html
Slide 2: Contents
Contents 1. Overview of FY19 Interim Results 4．Intitatives for ESG and SDGs (1) Performance Figures ・・・ 2 (1) ESG Initiatives ・・・ 19 (2) Orders Received ・・・ 3 (2) SDGs Initiatives ・・・ 20 (3) Net Sales ・・・ 4 (4) Operating Income ・・・ 5 5. Raising Shareholders’ Value (5) Synergy with three companies in
Slide 3: Overview of FY19 Interim Results: Performance Figures
1. Overview of FY19 Interim Results (1) Performance Figures ◆ In addition to the organic growth of performance, the integration of the three companies in western Japan increased sales substantially. ◆Although SG&A expenses increased due to Group company growth, our profit increased significantly tha
Slide 4: Orders Received
1. Overview of FY19 Interim Results (2) Orders Received ◆ Orders increased significantly thanks to strong performance in each segment and a large order in urban infrastructure. The three companies in western Japan also received orders steadily. ○ Telecommunications (¥bn) facilities Seibu ○ Electrici
Slide 5: Net Sales
1. Overview of FY19 Interim Results (3) Net Sales ◆ Although construction periods were extended in some segments, sales performed well against the background of strong orders. (¥bn) ○ Telecommunications facilities ○ Electricity supply ○ Urban Civil engineering ▲ Environmental engineering Seibu Nippo
Slide 6: Operating Income
1. Overview of FY19 Interim Results (4) Operating Income ◆ Although SG&A expenses increased due to newly consolidated companies and M&A, operating income increased significantly thanks to the contributions made by the three companies in western Japan. (¥bn) Nippon Amortization of Integration Dentsu
Slide 7: Trends in Group company profitability
1. Overview of FY19 Interim 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) (¥
Slide 8: Synergy with three companies in western Japan
1. Overview of FY19 Interim Results (5) 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. ■ Sales collaboration and construction collaboration commenced in each
Slide 9: Cash Flow
1. Overview of FY19 Interim Results (6) Cash Flow ◆ Cash flow is stable and cash on hand is ample. ■ Cash flow (consolidated) (¥bn) FY16 FY17 FY18 FY19 Interim Full year Interim Cash at beginning of FY 16.0 15.2 30.3 30.3 41.4 Operating activities 15.5 24.8 15.6 12.7 11.4 Investing activities -6.0 -
Slide 10: Expectations for the Rest of FY19: Performance Figures
2．Expectations for the Rest of FY19 (1) Performance Figures ◆ The highest-ever topline is expected, thanks to organic growth and year-round contributions by the three companies in western Japan. ◆ An update of the highest profit is expected due to the effect of newly consolidated subsidiaries and th
Slide 11: NTT Group (Access/Network)
2．Expectations for the Rest of FY19 (2) NTT Group (Access/Network) ◆ Net sales from work to open an optical network are steady, 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
Slide 12: NTT Group (Mobile)
2．Expectations for the Rest of FY19 (3) NTT Group (Mobile) ◆ Expect an increase in the construction of 4G-enabled base stations for the new frequency (3.4GHz). ◆ Start receiving orders for 5G. Prepare our construction system in case the construction of 5G base stations proceeds more rapidly than ini
Slide 13: NCCs
2．Expectations for the Rest of FY19 (4) NCCs ◆ Orders from Softbank perform well, and higher sales are expected in total compared to the previous year. ◆ Rakuten's wireless base station construction has started in earnest, and we are working with three companies in western Japan to respond. ■ Net sa
Slide 14: Investment Trends of Major Telecom Carriers
2．Expectations for the Rest of 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 16
Slide 15: Urban Infrastructure
2．Expectations for the Rest of FY19 (5) Urban Infrastructure ◆ Construction for 700MHzBand TV reception measures is declining, but sales are expected to remain strong. ◆ We have received large orders for the construction of mega solar, and the earth shuttle method for submarine cables, and we aim to
Slide 16: System-Solutions
2．Expectations for the Rest of FY19 (6) System-Solutions ◆ Continue to focus on the expansion of new solutions such as the cloud. ◆ We will strengthen our global operations through M&A and promote business expansion in the APAC region. ■ Solution Map (added value expansion plan) ■ System-Solutions n
Slide 17: Results of orders received for new solutions
2．Expectations for the Rest of FY19 Reference: Results of orders received for new solutions and activities going forward 8 ¥7.5bn 6 5 6 ¥3.7bn 4 ¥3.0bn 4 3 New energy field 2 ¥0bn 2 1 0 ・ Energy management service 0 FY19 FY19 FY19 FY19 ・ Transportable lithium battery Plan Interim Plan Interim ・ Smar
Slide 18: Global business initiatives
2．Expectations for the Rest of FY19 Reference: Global business initiatives Building business bases ・ Airport ICT ・ 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 commu
Slide 19: Our M&A Strategy: Development Direction by Business Segment
3. 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 20: ESG Initiatives
4. Intitatives for ESG and SDGs (1) ESG Initiatives ・Reduction of CO2 emissions ⇒ 1% reduction of power/gasoline use compared to the previous year Ｅ ・Use of green energy, forest conservation ⇒ Solar power business, Forest of Exeo, and so on Environment ・Promotion of green procurement ⇒ 63% or more o
Slide 21: SDGs Initiatives
4. Intitatives for ESG and SDGs (2) SDGs initiatives ① Achievement of a safe and secure society ② Achievement of an affluent society through the infrastructure business through the solution business Achieve urban development that is safe and secure for Resolution of social issues and achievement of
Slide 22: 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 23: Plan for shareholder returns for FY19
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 3.0 7.
Slide 24: KDT Co., Ltd. and SUN PLANNING SYSTEMS made Group companies
6. Topix (1) KDT Co., Ltd. and SUN PLANNING SYSTEMS Co., Ltd made a Group company ◆ Grouped KDT Co., Ltd. for the expansion of business scale in Hokkaido ◆ Grouped SUN PLANNING SYSTEMS Co., Ltd, which holds a market competitive IT tool ■ Profile of KDT Co., Ltd. ■ Profile of SUN PLANNING SYSTEMS Co.
Slide 25: eiwa-builtech and Winner Engineering made Group companies
6. Topix (2) eiwa-builtech and Winner Engineering Pte.Ltd. made a Group company ◆ eiwa-builtech was acquired by the Group with the aim of expanding the urban infrastructure business in the area of Kyushu. ◆ Grouped Winner Engineering Co., Ltd., which engages in air conditioning construction in Singa
Slide 26: 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