Slide 1: Results for the Six Months Ended September 30, 2017
Results for the Six Months Ended September 30, 2017 November 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/index.html Resu
Slide 2: Contents
Contents 1. Overview of FY17 Interim Results ･･･ 2 3. Medium-Term Management Plan ･･･ 25 (1) Performance Figures ･･･ 3 (1) Outline ･･･ 26 (2) Orders Received ･･･ 4 (2) Image of growth in each segment ･･･ 27 (3) Net Sales ･･･ 5 (4) Operating Income ･･･ 7 4. Raising Shareholders’ Value ･･･ 29 (5) Cash
Slide 3: 1. Overview of FY17 Interim Results
1. Overview of FY17 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, 2017
Slide 4: Overview of FY17 interim results (consolidated)
1. Overview of FY17 Interim Results (1) Performance Figures Both orders received and net sales up YOY due to strong NTT Group orders ◆ Due to the greater efficiency of construction and the like, all types of income increased YOY and compared to the plan, and reached a new high ■ Overview of FY17 i
Slide 5: Orders Received
1. Overview of FY17 Interim Results (2) Orders Received ◆ Exceeded the previous year due to strong NCCs and Urban Infrastructure orders ◆ Increased compared to the plan due to the strong orders received from the NTT Group ■ YOY (consolidated) ■ Compared to plan (consolidated) (¥bn) ○ SI ○ NI ▲ KDDI
Slide 6: Net Sales
1. Overview of FY17 Interim Results (3) Net Sales ◆ Increased YOY by consuming a large number of carried-over projects in each segment ◆ Fell slightly short compared to the plan due to the delayed sales of Mobile (NTT & NCC) ■ YOY (consolidated) ■ Compared to plan (consolidated) (¥bn) － SI ▲ KDDI 〇
Slide 7: Status of projects carried over
1. Overview of FY17 Interim Results Reference: Status of projects carried over ◆ Work carried over after 2Q at all-time high ■ Work carried over at end of Previous FY and 2Q by year (consolidated) 179.7 (¥bn) 156.6 143.5 138.6 133.1 125.8 117.9 118.3 103.7 105.4 End of 2Q End of 2Q End of 2Q End of
Slide 8: Operating Income
1. Overview of FY17 Interim Results (4) Operating Income Reached a record high due to the improved construction efficiency and the promotion of multiple measures for greater efficiency ■ YOY (consolidated) ■ Compared to plan (consolidated) (¥bn) 23.0 23.0 23.0 (Plan) (Plan) (Plan) 20.8 (Actual) Im
Slide 9: Trends in Group company profitability
1. Overview of FY17 Interim Results Reference: Trends in Group company profitability ◆ Continued high level of profits 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) (1.6) (2.1)
Slide 10: Cash Flow
1. Overview of FY17 Interim Results (5) Cash Flow ◆ Stable cash flow ■ Cash flow (consolidated) (¥bn) FY14 FY15 FY16 FY17 Interim Full Interim Cash at beginning of FY 16.2 24.2 16.0 16.0 15.2 Operating activities 23.1 5.3 17.9 15.5 17.3 Investing activities -2.8 -13.9 -2.0 -6.0 -1.4 Financing activi
Slide 11: 2. Expectations for the Rest of FY17
2. Expectations for the Rest of FY17 (1) Performance Figures (2) NTT Group (Access/Network) (3) NTT Group (Mobile) (4) NCCs (5) Urban Infrastructure (6) SYSTEM-SOLUTIONS (7) Measures for greater efficiency ( Improved Productivity) －10－ Results for the Six Months Ended September 30, 2017
Slide 12: Performance Figures: Plans for FY17
2. Expectations for the Rest of FY17 (1) Performance Figures Will remain firm in 2Q Aim to achieve annual plan on the back of record-high work carried over and strong orders ■ Plans for FY17 (consolidated) (¥bn) FY 2016 FY2017 Interim Full year Interim Full year Plan Progress Plan Actual YOY Pla
Slide 13: NTT Group (Access/Network)
2. Expectations for the Rest of FY17 (2) NTT Group (Access/Network) ◆ Increase in the Hikari collaboration has resulted in continued demand for FTTH ◆ The Group as a whole is promoting measures for greater efficiency ■ Trend of number of subscribers to fixed-line broadband ■ Net sales of NTT Group 4
Slide 14: NTT Group (Mobile)
2. Expectations for the Rest of FY17 (3) NTT Group (Mobile) ◆ LTE-Advanced construction work volume remains high ◆ The construction work is behind schedule due to the extension of work, etc. However, we aim to catch up throughout the full year ■ Net sales of NTT Group ■ NTT DoCoMo Network Developmen
Slide 15: NCCs
2. Expectations for the Rest of FY17 (4) NCCs ◆ Sales fell below the plan, but increased YOY ◆ Construction jobs of new frequency bands for traffic in 4G are active ■ Net sales of NCCs (consolidated) ■ Planned number of specified base stations with 700MHz 50,000 38,879 40,000 2nd Full 29,863 quarter
Slide 16: Urban Infrastructure
2. Expectations for the Rest of FY17 (5) Urban Infrastructure ◆ Construction jobs for 700MHZ TV reception will be proceeding at full pace towards FY19 ◆ Continue to aim to win orders for large-scale electrical construction projects related to Tokyo metropolitan area redevelopment ■ Urban Infrastruct
Slide 17: SYSTEM-SOLUTIONS
2. Expectations for the Rest of FY17 (6) SYSTEM-SOLUTIONS ◆ Fuse the BPM solution business with the peripheral domains to expand the added value ◆ Gradually produce results in the new solution fields such as IoT and the cloud ■ SYSTEM-SOLUTIONS net sales ■ Expand the added value of the BPM solution
Slide 18: Orders received for new solutions and future activities
2. Expectations for the Rest of FY17 Reference: Results of orders received for new solutions and activities going forward 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 E
Slide 19: Reference: Energy Viewer
2. Expectations for the Rest of FY17 Reference: ◆ Deregulation ofEnergy Viewer 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 ◆ De
Slide 20: Reference: Cloud Integration Engineering
2. Expectations for the Rest of FY17 Reference: Cloud Integration Engineering* Development of the market for sound solutions for enterprises and the expansion of the IoT solutions lineup ◆ Concept of business development of cloud integration engineering (1) State of activities [From April to the end
Slide 21: Reference: Mesh-Type Beacon
2. Expectations for the Rest of FY17 Currently, approximately 20 companies are introducing it on a small Reference: Mesh-Type Beacon scale. (POC) Plant/warehouse , etc. Construction site, etc. Office , etc. Management of storage place for packages Management of workers’ whereabouts Management
Slide 22: Reference: Global business initiatives
2. Expectations for the Rest of FY17 Reference: Global business initiatives ■ MG Exeo sales trends （¥100m） Vietnam 15 Philippines 10 5 0 FY12 FY13 FY14 FY15 FY16 FY17 Plan Indonesian MG Exeo (Philippines) as a base for Concluded an agreement to acquire shares of a new development in Asia including A
Slide 23: Measures for greater efficiency (Improved Productivity)
2. Expectations for the Rest of FY17 (7) Measures for greater efficiency (Improved Productivity) ◆ Progress as planned by 2Q ◆ Continued measures to improve profits ■ Enhanced profitability through cost reductions ＦＹ FY2014 FY2015 FY2016 FY2017 ¥1.5bn ¥1.0bn ¥1.0bn ¥1.0bn Improvement Aims (cumulativ
Slide 24: System for promoting business structural reform
2. Expectations for the Rest of FY17 Reference: System for promoting business structural reform ◆ Promote the horizontal development of the best practice measures across the fields President Steering committee Administrative office Suggestion from ＰＴ for business structural reform Business improveme
Slide 25: Specific example of business improvement measures
2. Expectations for the Rest of FY17 Reference: Specific example of business improvement measures (construct common bases for in-house systems) Goal Automated mutual collaboration with system EX via construction management system from all kinds of business scenarios Headquarters Customer System EX C
Slide 26: 3. Medium-Term Management Plan (FY16–FY20)
3. Medium-Term Management Plan (FY16–FY20) (1) Outline (2) Image of growth in each segment －25－ Results for the Six Months Ended September 30, 2017
Slide 27: Medium-Term Management Plan: Outline
3. Medium-Term Management Plan(FY16–FY20) (1) Outline ■ Medium-Term Vision ■ Basic Policies 1. Reorganize business portfolio, fostering solutions into second core business 2. Expand engineering peripheral businesses by combining existing technologies and services 3. Expand business through M&A and a
Slide 28: Image of growth in each segment
3. Medium-Term Management Plan(FY16–FY20) (2) Image of growth in each segment (¥bn) 4,000 400 3,500 350 ◇IoT solutions SYSTEM- ◇Geo solutions （Mesh Beacon） Overseas projects SOLUTIONS 300 3,000 New solutions ◇New energy (Energy Viewer) Vietnam projects ◇ MS Cloud HEMS, Smart meters ODA projects in S
Slide 29: Investment Trends of Major Telecom Carriers
3. Medium-Term Management Plan(FY16–FY20) Reference: 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
Slide 30: 4. Raising Shareholders' Value
4. Raising Shareholders’ Value (1) Payment of Dividends －29－ Results for the Six Months Ended September 30, 2017
Slide 31: Payment of Dividends
4. 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 32: 5. Topics
5. Topics (1) The National Skills Competition (Skill sector: Information Network Cabling) －31－ Results for the Six Months Ended September 30, 2017
Slide 33: The National Skills Competition
5. Topics (1) The National Skills Competition (Skill sector: Information Network Cabling) ◆ Mr. Yoshiaki Shimizu, one of our employees, won the gold medal in the National Skills Competition held in Abu Dhabi, UAE in October 2017!! ■ Our employees participated in the same skill sector of the National
Slide 34: 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