Slide 1: Annual Results for the Fiscal Year Ended March 31, 2017 (FY 2016)
Annual Results for the Fiscal Year Ended March 31, 2017 (FY 2016) May 10, 2017 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 FY16 Results ・・・2 (6) NTT Group (Access/Network) ・・・16 (1) Performance Figures ・・・3 (7) NTT Group (Mobile) ・・・17 (2) Orders Received ・・・4 (8) NCCs ・・・18 (3) Net Sales ・・・5 (9) Urban Infrastructure ・・・19 (4) Operating Income ・・・6 (10) SYSTEM-SOLUTIONS ・・・20 (5) Cash Flow ・・・8
Slide 3: 1. Overview of FY16 Results
1. Overview of FY16 Results (1) Performance Figures (2) Orders Received (3) Net Sales (4) Operating Income (5) Cash Flow －2－ Annual Results for FY 2016
Slide 4: Performance Figures
1. Overview of FY16 Results (1) Performance Figures ◆ Orders received, sales and profits all increased due to strong orders received from telecom carriers ◆ Net sales were in line with the plan, but operating income hit a new high ■ Overview of FY16 results (consolidated) (¥bn) FY15 FY16 FY16 Compar
Slide 5: Orders Received
1. Overview of FY16 Results (2) Orders Received ◆ Up YOY due to rises in all segments, particularly orders received from NTT Group ◆ Grew at a sluggish pace in Urban Infrastructure and SYSTEM-SOLUTIONS, but increased compared to the plan, thanks to strong orders received from telecom carriers ■ YOY
Slide 6: Net Sales
1. Overview of FY16 Results (3) Net Sales ◆ Up YOY due to increases in all segments ◆ Almost in line with the plan as sales to telecom carriers saw a recovery in sluggish growth in Urban Infrastructure and SYSTEM-SOLUTIONS ■ YOY (consolidated) ■ Compared to plan (consolidated) (¥bn) 〇 ＳＩ NCCs ● ＳＩ 〇
Slide 7: Operating Income
1. Overview of FY16 Results (4) Operating Income ◆ Up YOY thanks to increases in sales and measures for productivity improvement ◆ Marked a record high as measures for productivity improvement and improved operating efficiency offset underperformance ■ YOY (consolidated) ■ Compared to plan (consolid
Slide 8: Trends in Group company profitability
1. Overview of FY16 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) (1.6) (1.7) (1.8) (1.8
Slide 9: Cash Flow
1. Overview of FY16 Results (5) Cash Flow ◆ Stable cash flow ■ Cash flow (consolidated) (¥bn) FY14 FY15 FY16 Cash at beginning of FY 16.2 24.2 16.0 Operating activities 23.1 5.3 15.5 Investing activities -2.8 -13.9 -6.0 Financing activities -12.3 0.3 -10.2 Cash at end of FY 24.2 16.0 15.2 Note: All
Slide 10: 2. Plans for FY17
2. Plans for FY17 (1) Medium-Term Forecast for Projects (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) NCCs (9) Urban Infrastructure (10) SYSTEM-SOLUTIONS (11) Im
Slide 11: Medium-Term Management Plan: Concept of Growth
2. Plans for FY17 (1) Medium-Term Management Plan (FY16–FY20) : Concept of Growth (¥bn) Expand engineering peripheral businesses by combining existing 4,000 400 technologies and services Provide total solutions to ICT and IoT-related business Expand business through M&A and alliances 3,500 350
Slide 12: Plans for FY17: Performance Figures
2. Plans for FY17 (2) Performance Figures ◆ Targeting record high sales and profits backed by a wealth of ongoing construction jobs ■ Plans for FY17 (consolidated) (¥bn) FY16 FY17 Actual Plan YOY A B B/A Orders received 324.1 330.0 102% Net sales 298.8 320.0 107% (12.9%) (12.9%) Gross profit 38.4 41
Slide 13: Orders Received and Net Sales
2. Plans for FY17 (3) Orders Received and Net Sales ◆ Make up for reduced NTT Group orders through urban infra and SYSTEM-SOLUTIONS ◆ Increase income through lucrative carried-over projects and steady accumulation of orders ■ Orders received (consolidated) ■ Net sales (consolidated) ● Access 〇 700 M
Slide 14: Status of projects carried over
2. Plans for FY17 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) 143.5 117.9 118.3 103.7 105.4 FY13 FY14 FY15 FY16 FY17 Note: All amounts less t
Slide 15: Operating Income
2. Plans for FY17 (4) Operating Income ◆ Hit a new high due to higher sales and measures for productivity improvement, despite rising operating expenses ■ Operating income (consolidated) ● Stronger marketing ● Expenses for integration of bases, etc. (¥bn) Elimination of projects with deficit Others
Slide 16: Investment Trends of Major Telecom Carriers
2. Plans for FY17 (5) Investment Trends of Major Telecom Carriers ■ NTT East/West ■ NTT DoCoMo (¥bn) 690.7 703.1 661.8 626.6 583.4 595.2 597.1 570.0 547.9 510.0 387.8 406.7 365.4 263.0 224.0 177.0 156.0 153.0 FY13 FY14 FY15 FY16 FY17 Plan FY13 FY14 FY15 FY16 FY17 Plan Optical fiber 合計 LTE-related ■
Slide 17: NTT Group (Access/Network)
2. Plans for FY17 (6) NTT Group (Access/Network) ◆ The Hikari collaboration has resulted in continued demand for FTTH ◆ The Group as a whole is promoting measures for greater efficiency ■ Net sales of NTT Group ■ NTT facilities management (fixed-line related) (fixed-line network, consolidated) 【Net
Slide 18: NTT Group (Mobile)
2. Plans for FY17 (7) NTT Group (Mobile) ◆ LTE-Advanced construction work volume remains high ◆ Mobile traffic continues to increase ■ Net sales of NTT Group ■ NTT DoCoMo Network Development (mobile network, consolidated) 2014 2015 2016 2020 Effective (¥bn) speed ５Ｇ Up to １Gbps 54.0 Further sophisti
Slide 19: NCCs
2. Plans for FY17 (8) NCCs ◆ Orders received in Hokkaido area surge by winning orders for a combination of construction and maintenance of KDDI facilities ◆ Construction jobs for traffic are proceeding at full pace ■ Net sales of NCCs (consolidated) ■ Trial consolidation of KDDI construction and mai
Slide 20: Urban Infrastructure
2. Plans for FY17 (9) Urban Infrastructure ◆ Electrical construction and power pole elimination related to Tokyo metropolitan area redevelopment remain strong ◆ 700 MHz Band TV reception measures proceed at full pace ■ Urban Infrastructure net sales (consolidated) ■ Status of Large Redevelopment * T
Slide 21: SYSTEM-SOLUTIONS
2. Plans for FY17 (10) SYSTEM-SOLUTIONS ◆ Expand BPM Solutions Business ◆ Focus on new solutions such as IoT and cloud ■ SYSTEM-SOLUTIONS net sales ■ Expansion of BPM Solutions Business (consolidated) (¥bn) 45.0 Develop 39.7 37.8 35.2 33.6 Identification of issues Visualization of redundant processe
Slide 22: Performance and future initiatives of new solutions
2. Plans for FY17 Reference: Performance and future initiatives of new solutions 6 ¥5.6bn 6 5 5 4 4 ¥3.0bn 3 ¥1.3bn 3 2 New energy field 2 ¥1.4bn 1 1 0 ・ Energy management service 0 FY16 FY17 Plan ・ Transportable lithium battery FY16 FY17 Plan ・ Smart meter Launched survival power supply (March 2016
Slide 23: Reference: Energy Viewer
2. Plans for FY17 Reference: Energy Viewer ◆Energy management service for small and medium-sized corporations (high voltage small lot) ◆B2B2X business model. Middle B mainly targets electric power companies. Cubicle High-voltage power receiving equipment [Energy Viewer features] Temperature ■ Cost s
Slide 24: Reference: Cloud Integration Engineering
2. Plans for FY17 Reference: Cloud Integration Engineering* Development of the market for sound solutions for enterprises and the expansion of the IoT solutions lineup Cloud Business Groupware Storage Authentication IoT Big Data (1) State of activities Efforts for sound solutions for enterprises in
Slide 25: Mesh-type beacon network solutions
2. Plans for FY17 Reference: Begin commercializing and providing mesh-type beacon network solutions [Point 2] [Point 1] Enable the achievement Provide the “Exbeacon of various objectives such platform” that combines as sensor network, indoor the design and positioning infrastructure construction of
Slide 26: Global business initiatives
2. Plans for FY17 Reference: Global business initiatives ■ MG Exeo sales trends （¥100m） 15 Vietnam Philippines 10 5 0 FY12 FY13 FY14 FY15 FY16 FY17 Plan Take charge of the MG Exeo (Philippines) as a base for Makati area, in addition Indonesian to two long-standing development in Asia including ASEAN
Slide 27: Entry into the Vietnamese market
2. Plans for FY17 Reference: Entry into the Vietnamese market As part of the measures for strengthening the overseas business, concluded an agreement to acquire shares of a new company of the IBS (In-Building System) Business in Vietnam. IBS Business: Abbreviation for In-Building System Business. It
Slide 28: Improved Productivity
2. Plans for FY17 (11) Improved Productivity ◆ FY16 targets achieved ◆ Continued measures to improve profits ■ Enhanced profitability through cost reductions ＦＹ FY2014 FY2015 FY2016 FY2017 Plan ¥1.5bn ¥1.0bn ¥1.0bn ¥1.0bn Improvement Aims (cumulative ¥6.0bn) (cumulative ¥5.0bn) (cumulative ¥7.0bn) (
Slide 29: Measures for business improvement projects
2. Plans for FY17 Reference: Measures for business improvement projects ■ Increased operational efficiency by using IT Paperless information sharing between desk and construction sites Real-time in-house inspection through photo shooting by smartphone Gain an understanding of the progress and
Slide 30: Measures for work style reform
2. Plans for FY17 Reference: Measures for work style reform ■ Example of reducing overtime work through a work shift system at the technical center Effect of reducing overtime work by up to four hours per person per day ■ Certified as a Health and Productivity Management Organization The Ministry of
Slide 31: 3. Raising Shareholders' Value
3. Raising Shareholders’ Value (1) Payment of Dividends －30－ Annual Results for FY 2016
Slide 32: Payment of Dividends
3. Raising Shareholders’ Value (1) Payment of Dividends ◆ Annual dividend up ¥4 YoY to ¥50 ◆ Targeting 3% DOE and continued stable mid- to long-term dividend rise ■ Dividend history (per share) ■ Total shareholder return (Total dividends + total acquisition of treasury stock) 46 ￥50 Total dividends
Slide 33: 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