Slide 1: Annual Results for the Fiscal Year Ended March 31, 2021 (FY 2020)
Annual Results for the Fiscal Year Ended March 31, 2021 (FY 2020) May 20, 2021
Slide 2: Contents
Contents 1. Overview of FY20 Results 4. Group Strategies (1) Trends in Profit Generation Within the (1) Financial Highlights ・・・ 4 ・・・ 19 Group (2) Results Highlights(Orders Received, Net ・・・ 5 (2) Group Structure and M&A ・・・ 20 Sales) (3) Results Highlights(Operating Income) ・・・ 6 (3) Global Strate
Slide 3: 1. Overview of FY20 Results
1. Overview of FY20 Results ©2021 Kyowa Exeo Corporation All Rights Reserved. 3
Slide 4: (1) Financial Highlights
(1) Financial Highlights Both orders received and net sales increased over 9% year on year. Operating income rose significantly, 18% year on year, partly due to an increase in profit margin. Orders received exceeded ¥630.0 billion, driven by orders related to GIGA School program and advanced radio.
Slide 5: (2) Results Highlights (Orders Received, Net Sales)
(2) Results Highlights (Orders Received, Net Sales) Both orders received and net sales far exceeded their levels in the previous year and initial plan, driven by the GIGA School Program and other factors. ■ Orders Received ■ Net Sales (billion yen) 13% more than in FY2019 20% more than the plan 9% m
Slide 6: (3) Results Highlights (Operating Income)
(3) Results Highlights (Operating Income) Operating income rose significantly, reflecting an increase in the profit margin due to an improvement in profitability resulting from the redevelopment of construction teams and digital transformation initiatives. Productivity ■ Operating Income enhancement
Slide 7: 2. Forecast for FY2021 Performance
2. Forecast for FY2021 Performance ©2021 Kyowa Exeo Corporation All Rights Reserved. 7
Slide 8: (1) Plan Summary
(1) Plan Summary Despite the end of special demand related to the GIGA School program, the Group will seek to increase income by expanding growth businesses and implementing initiatives that improve productivity. FY2020 FY2021 （billion yen） Actual Plan YOY A B BーA Orders received 631.0 550.0 ▲81.0 N
Slide 9: (2) Plan Summary (Operating Income)
(2) Plan Summary (Operating Income) The Telecom Carriers business is expected to continue steadily contributing to income.The Group will strive to increase income chiefly by expanding the fields where it is strong in the Urban Infrastructure and System-Solutions businesses. The Group also aims to im
Slide 10: 3. Segment Information
3. Segment Information ©2021 Kyowa Exeo Corporation All Rights Reserved. 10
Slide 11: (1) NTT Group
(1) NTT Group Net sales in Access, where the Project on Promoting Advanced Radio Environment Improvements has begun, were strong. Progress in 5G projects etc. is expected. ■ Trends in net sales and plan for FY2021 ■ Topics (NTT East, West and NTT DoCoMo) (billion yen) Project on Promoting Advanced R
Slide 12: (2) NCC
(2) NCC The Company will actively respond to trends impacting telecom carriers and engage in 5G, maintenance and repair and adjustment processes. ■ Trends in net sales and plan for FY2021 ■ Topics (Softbank) (billion yen) SoftBank's 5G and 6G plans Will invest about 2.2 trillion yen over the next te
Slide 13: (2) NCC
(2) NCC As each telecom carrier accelerates its installation of base stations, the entire Group will energetically respond to the situation nationwide. ■ Topics (KDDI) ■ Topics (Rakuten Mobile) KDDI's 5G plan Rakuten's 4G plan Approximately ¥2 trillion will be invested by Investment in 4G will incre
Slide 14: (3) Urban infrastructure
(3) Urban infrastructure The Company will actively engage in energy-related construction and the renovation of aging infrastructure in response to strong capital expenditure. ■ Trends in net sales and plan for FY2021 ■ Topics (billion yen) Energy Begin preparations for entering the renewable energy
Slide 15: (3) Urban Infrastructure (Part of Priority Projects)
(3) Urban Infrastructure (Part of Priority Projects) Leveraging our technological prowess Expanding our business domain in the field of renewable energy in the field of railways Biomass power generation facilities Earth shuttle method (arc-shaped drill) Increasing reliability based on our track Cont
Slide 16: (4) System solutions
(4) System solutions The Company will create high value-added solutions and provide services based on competitive products. ■ Trends in net sales and plan for FY2021 ■ Topics (billion yen) Responding to needs for digitalization Create high value-added products in response to new needs, including com
Slide 17: (4) System solutions
(4) System solutions Providing total, optimized solutions that solve social issues and advance customers' digital transformations Business process DX consulting Using competitive platforms Visualizing existing business processes Automating IT operations using ServiceNow and RPA Designing ideal
Slide 18: 4. Group Strategies
4. Group Strategies ©2021 Kyowa Exeo Corporation All Rights Reserved. 18
Slide 19: (1) Trends in Profit Generation Within the Group
(1) Trends in Profit Generation Within the Group The subsidiaries' contribution to profits has been increasing every year, and consolidated profits is now more than twice non-consolidated income. The earning power of the entire Group is developing. ■ Consolidated operating income Consolidated to non
Slide 20: (2) Group Structure and M&A (Japan)
(2) Group Structure and M&A (Japan) Growth in the domestic business has been supported by subsidiaries, including subsidiaries that have been recently added through M&A activities. The subsidiaries have boosted the Group's overall capabilities. Major Consolidated Subsidiaries Group companies added t
Slide 21: (3) Global Strategy
(3) Global Strategy EXEO Global controls three segments which include challenging fields. The Group companies under EXEO Global generate synergies with domestic businesses and expand the Group's business fields. • Access, network, mobile construction Telecommunications • Building common infrastructu
Slide 22: 5. Shareholder Return
5. Shareholder Return ©2021 Kyowa Exeo Corporation All Rights Reserved. 22
Slide 23: (1) Dividends, Share Buybacks
(1) Dividends, Share Buybacks Continue to actively provide shareholder returns (have adopted DOE and will continue to steadily increase dividends) ■ Annual dividends: Will increase for the tenth consecutive year. ■ Acquisition of treasury stock: Will flexibly purchase treasury stock in light of mark
Slide 24: (2) Total Shareholder Return, ROE, EPS
(2) Total Shareholder Return, ROE, EPS Aim to steadily increase ROE and EPS by continuing to increase income and capital efficiency. ■ Total Shareholder Return ■ ROE/EPS (billion yen) Amount determined as Fall in ROE due to M&A activities of May 2021 Plan ©2021 Kyowa Exeo Corporation All Rights Rese
Slide 25: 6. Topics
6. Topics ©2021 Kyowa Exeo Corporation All Rights Reserved. 25
Slide 26: (1) Wins Gold Medal at National Skills Competition Japan
(1) Wins Gold Medal at National Skills Competition Japan (human resources development) In the National Skills Competition Japan, Ebihara, an employee of the Company, won a Gold Medal in the Information Network category. This is the eighth time, and the second consecutive year that an employee of the
Slide 27: (2) Selected as a Semi-Nadeshiko Brand
(2) Selected as a Semi-Nadeshiko Brand (women's active participation) The Company was selected as a 2020 Semi-Nadeshiko Brand, which is a Ministry of Economy, Trade and Industry and Tokyo Stock Exchange program recognizing companies that excel at promoting women's participation. To promote the activ
Slide 28: (3) A Sustainable Office Completed
(3) A Sustainable Office Completed (reducing environmental impact) A new ZEB-certified Minami Kanto Branch building has been completed following the sustainable office concept. The building's energy consumption is 51% less than a standard building of the same size due to windows that reduce heat fro
Slide 29: (4) Starting a New Form of Agriculture
(4) Starting a New Form of Agriculture (harmony with communities) C-Cube, a major subsidiary, produces and sells high-sugar mini tomatoes in a smart farm using ICT. C-Cube produces high-sugar Sweet Cube mini tomatoes at C-Cube Sakahogi Farm in Gifu Prefecture. The farm takes steps to mitigate global
Slide 30: (5) The Group's Response to COVID-19
(5) The Group's Response to COVID-19 Thorough infection prevention measures ● Through disinfection of offices, preparing PCR test kits for voluntary testing, making rules known to employees, etc.Driving work style reforms in response to the new normal created by the COVID-19 pandemic, improving the
Slide 31: (Reference) Remote Work Solutions Provided by the Company
(Reference) Remote Work Solutions Provided by the Company Visualization of attendance ratio Communications using Microsoft Teams Office - Online meetings Mobile working - Online training - Online interviews ■ Processing at the place of working or on site - On board the means of transport while in tr
Slide 32: Appendix
Appendix ©2021 Kyowa Exeo Corporation All Rights Reserved. 32
Slide 33: Consolidated Statement of Income
Consolidated Statement of Income (billion yen) FY 2019 FY 2020 FY 2021 Full year Full year Full year Corrective Plan Initial Initial Plan (Announced on Actual YOY Plan YOY Plan accuracy Feb. 10, 2021) A B C D D/A D/B E E/D Orders received 556.3 525.0 600.0 631.0 113% 120% 550.0 87% Net sales 524.5 5
Slide 34: Consolidated Orders and Net Sales by Segment
Consolidated Orders and Net Sales by Segment (billion yen) FY 2019 FY 2020 FY 2021 Full year Full year Corrective Plan Full year Initial Initial Plan (Announced on Actual YOY Plan YOY Plan accuracy Feb. 10, 2021) A B C D D/A D/B E E/D NTT Access engineering 151.2 151.2 160.7 166.4 110% 122% 146.9 88
Slide 35: Group segments
Group segments Segment Description of work Access engineering Access construction and civil engineering work for NTT Group NTT Group Network engineering Network construction for NTT Group (including network construction for DoCoMo) engineering Telecom carriers Mobile engineering Mobile construction
Slide 36: 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 37: Engineering for Fusion
Engineering for Fusion Connecting our world - to all our tomorrows EXEO