Slide 1: Annual Results for the Fiscal Year Ended March 31, 2024 (FY2023)
Annual Results for the Fiscal Year Ended March 31, 2024 （FY 2023 ） May 10, 2024
Slide 2: Contents
Contents １．Overview of FY2023 Results ４．Initiatives to Enhance corporate value （１）Initiatives to Enhance corporate value （１）Financial Highlights ・・・ 4 ・・・ 26 （Improving ROE） （２）Results Highlights(Orders Received, ・・・ 5 （２）M&A ・・・ 27 Net Sales) （３）Results Highlights(Operating Profit) ・・・ 6 （３）Cash Al
Slide 3: Overview of FY2023 Results
１．Overview of FY2023 Results ©2024 EXEO Group, Inc. All Rights Reserved. 3
Slide 4: Financial Highlights
（１）Financial Highlights Orders received reached a record high, and Sales also remain at record levels. Overseas business stagnated ,but domestic business remains steady. Year-end dividend 60 yen , 3 billion planned for share buyback. ©2024 EXEO Group, Inc. All Rights Reserved. 4
Slide 5: Results Highlights (Orders Received, Net Sales)
（２）Results Highlights（Orders Received, Net Sales） Orders received reached a record high. Sales declined year-on-year, but remained high. ■ Orders Received ■ Net Sales （billion yen） 625.6 620.0 656.5 627.6 630.0 614.0 Increased by 5％ YOY Decreased by 2％ YOY FY22 FY23 Plan FY23 FY22 FY23 Plan FY23 ©20
Slide 6: Results Highlights (Operating Profit)
（３）Results Highlights（Operating Profit） Despite lower profits in the global business, the domestic side of the business was strong, with all segments achieving higher profits. ■ Operating Profit Urban （ billion yen ） System Solutions Infrastructure ＋1.4 Telecoms Carriers ＋0.9 ＋0.5 Allowance transito
Slide 7: Results Highlights (Segment Information)
（４）Results Highlights（Segment Information） （billion yen） Telecoms Carriers Urban Infrastructure System Solutions 271.1 253.4 191.0 183.3 Net sales 165.3 177.2 FY22 FY23 FY22 FY23 FY22 FY23 Special factors Special factors Allowance for doubtful accounts 0.7B yen Unprofitable projects 0.1B yen Cost of
Slide 8: Forecast for FY2024 Performance
２．Forecast for FY2024 performance ©2024 EXEO Group, Inc. All Rights Reserved. 8
Slide 9: Plan Summary
（１）Plan Summary As regards sales, the aim is to achieve the medium-term management plan ahead of schedule. Planned increase in profits due to continued strong domestic business and improved profitability of global business. FY2023 FY2024 （billion yen） Actual Plan YOY A B BーA Orders received 656.5 64
Slide 10: Plan Summary (Segment Information)
（２）Plan Summary（Segment Information） （billion yen） Telecoms Carriers Urban Infrastructure System Solutions 253.4 236.0 200.0 183.3 194.0 177.2 Net sales FY23 FY24 Plan 10.0% FY23 FY24 Plan FY23 FY24 Plan 9.0% 8.0% 6.6% 6.7% Segment profit 7.0% 16.8 15.7 6.0% 5.0% 6.2% 4.0% 5.2% 5.2% 3.0% 3.4% 2.0% 1
Slide 11: Initiatives by Segment
3．Initiatives by Segment ©2024 EXEO Group, Inc. All Rights Reserved. 11
Slide 12: Telecoms Carriers
（１）Telecoms Carriers ■ Trends in net sales Access engineering Network engineering （billion yen） FY2024 Plan Mobile engineering NCCs 271.1 253.4 236.0 ・Capital investment by telecoms carriers 62.3 54.0 38.3 stagnates. 34.0 29.1 28.9 21.3 20.2 22.1 ・ Maintain/improve profitability as a core business.
Slide 13: Telecoms Carriers (Restructuring of area businesses)
（１）Telecoms Carriers (Restructuring of area businesses) Subsidiaries were reorganised on 1 April to optimise the telecom carrier business formation in the metropolitan area. Hokkaido ,Tohoku Region Shineitsushin Co.,Ltd. Integrated in August 2021. （Access engineering） Kansai, Chugoku Region Integrat
Slide 14: Telecoms Carriers (centralisation of offices)
（１）Telecoms Carriers (centralisation of offices) New Technology Centre (Dazaifu, Fukuoka) established to improve operational efficiency in the Kyushu area. ・ In order to create new value, five offices, including those of group companies, which were dispersed throughout Fukuoka City, were integrated.
Slide 15: Urban Infrastructure
（２）Urban Infrastructure ■ Trends in net sales (billion yen) FY2024 Plan 200.0 ・DC business remains strong. Expand 177.2 165.3 resources and maximise orders and completions. ・Profits for the current year will decrease due to the deteriorating profitability of large projects awarded in the past and in
Slide 16: Urban Infrastructure (Breakdown by Business Unit)
（２）Urban Infrastructure（Breakdown by Business Unit） ■ Trends in net sales (billion yen) ・Energy Unit ・Public infrastructure Unit ・Facility infrastructure Unit (Electricity, Environment, (Railway communications, urban- (700MHz Band TV reception Renewable energy, etc.) civil engineering, etc.) measure
Slide 17: Urban Infrastructure (Data Center)
（２）Urban Infrastructure（Data Center） Investment in domestic data centers by major cloud providers grows. ・ US cloud providers have announced investments of over 4 trillion yen. Shifted resources to data centers ・ Consolidation of resources from other businesses and and other electrical equipment gro
Slide 18: Urban Infrastructure (Environmental business)
（２）Urban Infrastructure（Environmental business） Contribute to reducing environmental impact through renewable and smart energy projects. ■ Woody biomass power generation ■ Smart energy Ashikaga Eco Power (Operation Start selling the Grid Storage Batteries Strengthening started in March 2024). electr
Slide 19: System Solutions
（３）System Solutions ■ Trends in net sales （ billion yen ） 191.0 194.0 FY2024 Plan 183.3 ・ SI business, including software development, steady. ・ The service business grew steadily and contributed to profits. ・ Aiming for a significant increase in profits along with a recovery in global business. FY2
Slide 20: System Solutions (Breakdown by Business Unit)
（３）System Solutions（Breakdown by Business Unit） ■ Trends in net sales （billion yen） ・Information system Unit ・Service Unit ・Overseas projects Unit (Contract development, server (Recurring business such as construction, etc.) maintenance and operation) 120.7 118.4 119.1 56.2 52.3 44.3 19.0 21.0 13.2
Slide 21: System Solutions (Total Solution Initiatives)
（３）System Solutions（ Total Solution Initiatives ） Total support for customers‘ DX promotion by maximising the use of the Group’s assets, with EXEO Digital Solutions, Inc.（EDS） and EXEO System Management, Inc.（ESM） at the core. Customers’ DX support 【Typical initiatives】 IT infrastructure Maintenance
Slide 22: System Solutions (Total Solution Initiatives)
（３）System Solutions（ Total Solution Initiatives ） Expand knowledge of system solutions to other segments to increase company-wide profits. System solutions Urban Infrastructure Telecoms Carriers Technologies to Private companies, Railways, NTT Group, etc. municipalities, etc. general contractors, et
Slide 23: System Solutions (NUTRIMATE)
（３）System Solutions（NUTRIMATE） Nutrimate, a nutritional food service management system with the No.1* domestic market share in university hospitals. New version (ver. 11) equipped with AI automatic menu planning function (patent pending) * According to Daiwa Densetsu Kogyo research. ©2024 EXEO Group
Slide 24: System Solutions (Overseas project)
（３）System Solutions（Overseas project） Strengthen management and governance, promote structural reforms for sustainable growth and steady improvement in income and expenditure. IT Managed Service ICT infrastructure Supply chain technology M&E Engineering • Provision and construction of • Digital trad
Slide 25: Initiatives to Enhance Corporate Value
4． Initiatives to Enhance corporate value ©2024 EXEO Group, Inc. All Rights Reserved. 25
Slide 26: Initiatives to Enhance Corporate Value (Improving ROE)
（１）Initiatives to Enhance corporate value（Improving ROE） Pursue growth to achieve ROE of 9.0% or higher as set out in the Medium- Term Management Plan. Continue growth exceeding capital costs to increase corporate value. ・ Shift of personnel to growth areas such as DC. ・ Integration of mobile busine
Slide 27: M&A
（２）M&A Aggressively continue M&A to increase scale and further improve profitability. ■ Net sales of acquired subsidiaries ■ M&A policy ※Aggregate of subsidiaries that have joined the Group since fiscal 2018. However, three companies in western Japan Company Group are excluded. ・ Strategic mergers a
Slide 28: Cash Allocation Policy
（３）Cash Allocation Policy Appropriately allocate the cash generated to investment in growth and shareholder returns, with the aim of increasing corporate value. Policy Policy ・ Cash flow generation through ・ Continued investment in building a Cash Generation Cash Allocation growth platform and throu
Slide 29: Disaster Relief Assistance
（４）Disaster Relief Assistance Engaged in reconstruction assistance activities following the Noto Peninsula earthquake of 2024. ・ A total of 6,000 people across the Group have been assisted in the restoration of telecommunications infrastructure. ・Provision of our own 'survival power supplies' and 'm
Slide 30: ESG
（５）ESG Social and governance-related initiatives continue to be implemented and external evaluations obtained. ■Recognized as a "A-" by CDP for excellence in climate action and information disclosure CDP, a London-based non-governmental organization (NGO) that works internationally to disclose envir
Slide 31: Shareholder Return
5． Shareholder Return ©2024 EXEO Group, Inc. All Rights Reserved. 31
Slide 32: Dividends, Share Buybacks
（１） Dividends, Share Buybacks From FY23, the dividend policy has been changed to a 4.0% DOE basis, and we plans to increase dividends for 13 consecutive fiscal years (interim 31 yen, annual 62 yen). Purchase of treasury stock continuously and flexibly. Cancellation of 3 million treasury shares at th
Slide 33: Total Shareholder Return, ROE, EPS
（２） Total Shareholder Return, ROE, EPS Active shareholder returns through consecutive dividend increases and continuous share buy-backs. ROE declined in FY23 due to valuation losses, but has been on a steady growth trajectory since FY24. ■ Total Shareholder Return ■ ROE/EPS 18.5 18.6 （billion yen） E
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 UR
Slide 35: Bring the benefits of connectivity to all
“Bring the benefits of connectivity to all”