Slide 1: Results for the Six Months Ended September 30, 2015
Results for the Six Months Ended September 30, 2015 November 2015 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 Resu
Slide 2: Contents
Contents 1. Overview of FY15 Interim Results ･･･ 2 (9) SYSTEM-SOLUTIONS ･･･ 20 (1) Performance Figures ･･･ 3 (10) Improved Productivity ･･･ 25 (2) Orders Received ･･･ 4 (3) Net Sales ･･･ 5 3. Raising Shareholders’ Value ･･･ 27 (4) Operating Income ･･･ 6 (1) Payment of Dividends ･･･ 28 (5) Cash Flow
Slide 3: 1. Overview of FY15 Interim Results
1. Overview of FY15 Interim Results (1) Performance Figures (2) Orders Received (3) Net Sales (4) Operating Income (5) Cash Flow ‐2‐ Results for the Six Months Ended September 30, 2015
Slide 4: Performance Figures
1. Overview of FY15 Interim Results (1) Performance Figures ◆ Orders received, sales down YOY on lower construction orders for carriers ◆ Lower sales impact income considerably despite continued measures to boost efficiency ■ Overview of FY15 interim results (consolidated) (¥bn) FY14 FY15 FY15 Inter
Slide 5: Orders Received
1. Overview of FY15 Interim Results (2) Orders Received ◆ Falling non-NTT telecom orders causes overall YOY decline despite steady performance in NTT Group work ◆ Despite strong NTT Group orders, lower construction for NCCs brings results short of plan ■ YOY (consolidated) ■ Compared to plan (consol
Slide 6: Net Sales
1. Overview of FY15 Interim Results (3) Net Sales ◆ SYSTEM-SOLUTIONS rise offset by falls in other segments, leading to YOY drop ◆ Lower NCC orders, extended NTT construction among factors causing sales to fall short of plan ■ YOY (consolidated) ■ Compared to plan (consolidated) (¥bn) 300.9 ● Access
Slide 7: Operating Income
1. Overview of FY15 Interim Results (4) Operating Income ◆ Sales drop impacts income considerably, causing falls YOY and against plan ■ YOY (consolidated) ■ Compared to plan (consolidated) (¥bn) 21.0 21.0 21.0 ● Sales mix 18.3 〇 Cost reduction, etc. Down due to Down due to decrease in sales ● Sales
Slide 8: Trends in Group company profitability
1. Overview of FY15 Interim Results Reference: Trends in Group company profitability ◆ Continued high level of profits in Group companies despite falling profitability for Exeo alone ■ Trends in operating profits over the past five years (consolidated/non-consolidated) (Ratio of consolidated to non-
Slide 9: Cash Flow
1. Overview of FY15 Interim Results (5) Cash Flow ◆ Stable cash flow ■ Cash flow (consolidated) (¥bn) FY12 FY13 FY14 FY15 Interim Full Interim Cash at beginning of FY 12.3 14.6 16.2 16.2 24.2 Operating activities 7.1 9.8 23.1 23.1 9.9 Investing activities -2.1 -7.4 -1.3 -2.8 -3.3 Financing activitie
Slide 10: 2. Expectations for the Rest of FY15
2. Expectations for the Rest of FY15 (1) Performance Figures (2) Medium-Term Forecast for Projects (3) Investment Trends of Major Telecom Carriers (4) FY20 Outlook (5) NTT Group (Access/Network) (6) NTT Group (Mobile) (7) Non-NTT Telecom Engineering (8) Environmental and Social Infrastructure (9) SY
Slide 11: Performance Figures: Plans for FY15
2. Expectations for the Rest of FY15 (1) Performance Figures ◆ Continued efforts to exceed plan during the year ■ Plans for FY15 (consolidated) (¥bn) FY14 FY15 Interim Full Interim Plan YOY A B C D D/B Orders received 149.3 301.4 140.8 310.0 103% Net sales 127.1 300.9 107.7 305.0 101% Gross profit (
Slide 12: Construction work carried over from 2Q of FY15
2. Expectations for the Rest of FY15 Reference: Construction work carried over from 2Q of FY15 ◆ Work carried over into next fiscal half at all-time high ■ Trends for value of work carried over into second half of fiscal year (from 2Q to 3Q) (consolidated) (¥bn) 138.6 131.7 133.1 125.8 107.7 FY11 In
Slide 13: Medium-Term Forecast for Projects
2. Expectations for the Rest of FY15 (2) Medium-Term Forecast for Projects ◆ Decrease in NTT fixed-line absorbed by other projects; increased earnings and profits to continue in the medium term ・・・ New core businesses in the future (Areas in which Kyowa Exeo can demonstrate its strengths) SYSTEM-SOL
Slide 14: Investment Trends of Major Telecom Carriers
2. Expectations for the Rest of FY15 (3) Investment Trends of Major Telecom Carriers ■ NTT East/West ■ NTT DoCoMo (¥bn) 784.1 754.9 726.8 753.7 690.7 703.1 661.8 626.6 590.0 600.0 387.8 406.7 224.1 353.0 219.5 304.0 291.0 263.0 240.0 205.0 218.9 92.3 136.9 FY15 FY15 FY11 FY12 FY13 FY14 FY15 FY15 FY1
Slide 15: FY20 Outlook
2. Expectations for the Rest of FY15 (4) FY20 Outlook ◆ To become a ¥400 billion company in FY20 ◆ To promote reconstruction of the business portfolio and grow the solutions business into a second pillar FY15 FY20 15% 25% Expansion of sales and business ¥305.0bn 60% domains by development into ¥400.
Slide 16: FY20 Outlook: Achievements and targets
2. Expectations for the Rest of FY15 (4) FY20 Outlook ◆ 基本方針 ■ Increase corporate value through sustained expansion of sales/creation of profits and improved capital efficiency ■ Achievements and targets FY14 FY15 FY20 Actual Plan Target Net sales \300.9bn \305.0bn \400.0bn Operating income \18.3bn
Slide 17: NTT Group (Access/Network)
2. Expectations for the Rest of FY15 (5) NTT Group (Access/Network) ◆ Continuing downward trend for fixed-line network ◆ Profits secured by streamlining business ■ Net sales of NTT Group ■ NTT facilities management (fixed-line related) (fixed-line network, consolidated) 【Net sales (consolidated)】 （¥
Slide 18: NTT Group (Mobile)
2. Expectations for the Rest of FY15 (6) NTT Group (Mobile) ◆ LTE-Advanced construction work at full pace ◆ Downgrading of project scale, noticeable trend toward concentration in large cities ■ Net sales of NTT Group ■ NTT DoCoMo network development (mobile network, consolidated) FY14 FY15 FY16 FY17
Slide 19: Non-NTT Telecom Engineering
2. Expectations for the Rest of FY15 (7) Non-NTT Telecom Engineering ◆ Construction orders down amid plan to gain NCC construction market share ◆ Public project targets narrowed down and proactive development of business ■ Non-NTT telecom engineering net sales ■ Government-sector telecom projects (c
Slide 20: Environmental and Social Infrastructure
2. Expectations for the Rest of FY15 (8) Environmental and Social Infrastructure ◆ Redevelopment of Tokyo metropolitan area and elimination of power poles at full speed in readiness for Tokyo Olympics ◆ Steady expansion in operation and maintenance management of waste-treatment plants ■ Environmenta
Slide 21: SYSTEM-SOLUTIONS
2. Expectations for the Rest of FY15 (9) SYSTEM-SOLUTIONS ◆ Making full use of high technological strength and plentiful human resources to expand SI business ◆ New solutions to become new business pillar ■ SYSTEM-SOLUTIONS net sales ■ SI (systems integration) business (consolidated) Further busines
Slide 22: Performance and future initiatives of new solutions and global business
2. Expectations for the Rest of FY15 Reference: Performance and future initiatives of new solutions and global business 3.5 3.5 3 3 ¥2.5bn 2.5 2.5 ¥2.0bn 2 2 ¥1.4bn ¥800m New energy 1.5 1.5 1 1 0.5 field 0.5 0 0 14 15 14 15 ・Regional power companies ・Power Producers and ・Start of cloud service for n
Slide 23: Cloud service for new electric power companies
2. Expectations for the Rest of FY15 Reference: Cloud service for new electric power companies FY20 Target 5 million houses(30% share) Cloud service for new electric power companies 5 years total orders 1.7billion yen Management of customers Tentative orders received Power generation and billing fro
Slide 24: The High-Accuracy Positioning Society Project
2. Expectations for the Rest of FY15 Reference ： The High-Accuracy Positioning Society Project □Making Japan a society with world-leading High-Accuracy Positioning Society Project (MLIT) highly accurate positioning systems to ensure Real-world testing of seamless positioning service in the success o
Slide 25: Global business initiatives
2. Expectations for the Rest of FY15 Reference: Global business initiatives ■ MG Exeo sales trends （¥100m） 1peso≒¥2.7 10 5 0 FY10 FY11 FY12 FY13 FY14 FY15 Plan MG Exeo (Philippines) as a base for development across SE Asia Education of ICT specialists in the Philippines → spread to other SE Asian co
Slide 26: Improved Productivity
2. Expectations for the Rest of FY15 (10) Improved Productivity ◆ FY14 targets achieved ◆ Continued measures to improve profits ■ Enhanced profitability through cost reductions ＦＹ 2012 2013 2014 2015 ¥1.0bn ¥1.5bn ¥1.5bn ¥1.0bn Improvement Aims (cumulative ¥2.0bn) (cumulative ¥2.0bn) (cumulative ¥5.
Slide 27: Reorganization of Group companies
2. Expectations for the Rest of FY15 Reference: Reorganization of Group companies ◆ Accelerated reorganization of Group companies aimed at improved streamlining and optimization of resources ■ Trends in number of subsidiaries (excluding WAKO ENGINEERING, Ikeno Tsuken, and Daiwa Densetsu) 34 companie
Slide 28: 3. Raising Shareholders' Value
3. Raising Shareholders’ Value ‐27 ‐ Results for the Six Months Ended September 30, 2015
Slide 29: Payment of Dividends
3. Raising Shareholders’ Value (1) Payment of Dividends ◆ Continuing proactive payment of dividends ◆ Toward sustained improvement in EPS, high ROE ■ Dividend history (per share) ■ Total shareholder return (Total dividends + total acquisition of treasury stock) 32 \32 Total dividends \8.1bn Total ac
Slide 30: 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