Exeo Group, Inc. · TSE:1951
Exeo — H1 FY2020 Earnings Presentation
26 slides from Exeo's earnings presentation, November 2020
Slide 1: Results for the Six Months Ended September 30, 2020
Results for the Six Months Ended September 30, 2020 (Telephone Conference) November 2020 URL: https://www.exeo.co.jp/en/ir/ We renewed our website.
Slide 2: Contents
Contents 1. Overview of FY20 Interim Results 4. Raising Shareholders’ Value (1) Performance Figures ・・・ 2 (1) Shareholder Return Policy ・・・ 21 (2) Orders Received ・・・ 3 (2) Plan for shareholder returns for FY20, etc. ・・・ 22 (3) Net Sales ・・・ 4 (4) Operating Income ・・・ 5 5. Topics (1) Minami Kanto Br
Slide 3: Overview of FY20 Interim Results: Performance Figures
1. Overview of FY20 Interim Results (1) Performance Figures ◆ Sales rose thanks to brisk orders and the completion of a large volume of carrried-over construction work. COVID-19 had limited impacts. ◆ Income grew in line with the growth of net sales, despite soaring SG&A expenses due chiefly to newl
Slide 4: Overview of FY20 Interim Results: Orders Received
1. Overview of FY20 Interim Results (2) Orders Received ◆ Urban Infrastructure remained strong despite a temporary decline against large orders in the previous fiscal year. Favorable orders were also achieved in system solutions. ▲ Telecommunications facilities (¥bn) ▲ Access ▲ Electricity supply ー
Slide 5: Overview of FY20 Interim Results: Net Sales
1. Overview of FY20 Interim Results (3) Net Sales ◆ While mobile construction and other work was delayed due to COVID-19, the sales performance in urban infrastructure was strong. (¥bn) ー Telecommunications facilities ○ Electricity supply ▲ KDDI ○ Urban Civil engineering ○ SB ○ Environmental ○ Rakut
Slide 6: Overview of FY20 Interim Results: Operating Income
1. Overview of FY20 Interim Results (4) Operating Income ◆ Despite a rise in SG&A expenses due chiefly to newly consolidated companies, the steady sales rise led to income growth. (¥bn) Improved Sales mix Productivity -1.4 +0.9 Increase in Up due to SG&A expenses Seibu Nippon increase in sales (e.g.
Slide 7: Trends in Group company profitability
1. Overview of FY20 Interim Results <Reference> Trends in Group company profitability ◆ Group companies achieved good results. The overall EXEO Group worked together to generate profits. ■ Trends in operating profits over the past five years (consolidated/non-consolidated) (Ratio of consolidated to
Slide 8: Cash Flow
1. Overview of FY20 Interim Results (5) Cash Flow ◆ Cash flow is stable. We determine the assignment of financial resources in consideration of the balance between investment in growth and return to shareholders. ■ Cash flow (consolidated) (¥bn) FY17 FY18 FY19 FY20 Interim Full year Interim Cash at
Slide 9: Expectations for the Rest of FY20: Performance Figures
2．Expectations for the Rest of FY20 (1) Performance Figures ◆ The highest-ever top line figure is expected through organic growth in urban infrastructure and other segments. ◆ SG&A expenses are expected to rise after an investment in growth. However, we will work to produce group synergy as we seek
Slide 10: NTT Group (Access/Network)
2．Expectations for the Rest of FY20 (2) NTT Group (Access/Network) ◆ Optical fiber installation works will increase in provincial areas given the Project on Promoting Advanced Radio Environment Improvements. ◆ An increase in 5G mobile backhaul projects is expected on the core network side. ■ Net sal
Slide 11: NTT Group (Mobile)
2．Expectations for the Rest of FY20 (3) NTT Group (Mobile) ◆ Construction of wireless base stations will gradually gather momentum with the expansion of 5G coverage areas. ◆ Collaboration in construction with access operations and ongoing redevelopment of construction teams for all mobile carriers i
Slide 12: NCCs
2．Expectations for the Rest of FY20 (4) NCCs ◆ Orders from SoftBank and Rakuten remain very high from the previous fiscal year. Sales growth is thus projected. ◆ We work with major subsidiaries to vigorously carry out work for Rakuten all over the country. ■ Trend in network construction by carrier
Slide 13: Investment Trends of Major Telecom Carriers
2．Expectations for the Rest of FY20 <Reference> Investment Trends of Major Telecom Carriers (Source: Figures released by the telecommunications carriers) ■ NTT East/West Optical fiber ■ NTT DoCoMo (¥bn) 597.1 577.9 593.7 547.9 549.6 541.0 572.8 570.0 522.5 480.0 156.0 154.0 161.0 150.0 156.0 FY16 FY
Slide 14: Urban Infrastructure
2．Expectations for the Rest of FY20 (5) Urban Infrastructure ◆ We receive a good deal of orders for large electrical works for data centers and other facilities. We will aim to continuously win orders. ◆ We will expand business in cable unloading, utility pole elimination and other areas where we ha
Slide 15: Other priority projects in urban infrastructure
2．Expectations for the Rest of FY20 <Reference> Other priority projects in urban infrastructure ◆ Continuously expand business fields to help newly construct, maintain, replace key infrastructure across the country ■ Railroad communication ■ Electrical works for large buildings ■ Urban civil enginee
Slide 16: System-Solutions
2．Expectations for the Rest of FY20 (6) System-Solutions ◆ Continue focusing on the expansion of new solutions such as the cloud ◆ Strive to establish business foundations for global operations despite the impact of lockdowns in several countries ■ System-Solutions net sales (consolidated) ■ Solutio
Slide 17: Our solution model map
2．Expectations for the Rest of FY20 <Reference> Our solution model map COVID-19 Digitalization of Continued Productivity The 2025 control measures operations work style reform enhancement Cliff problem Strength in proposals Strength in technologies Nationwide locations Consulting Construction and de
Slide 18: Efforts for Mid- to Long-Term Growth
2．Expectations for the Rest of FY20 (7) Efforts for Mid- to Long-Term Growth ◆ Efforts for new technologies and areas (examples of new products that we are working on) GIGA School Local 5G We will take part in demonstration trials of remote The GIGA School Concept, which is led by medicine and other
Slide 19: Efforts for Mid- to Long-Term Growth: Digital Transformation
2．Expectations for the Rest of FY20 (7) Efforts for Mid- to Long-Term Growth ◆ Push ahead with the business reform through digital transformation (DX) efforts Automation, simplification and advancement of operations Data-driven Digitalization of operations AI judgment Use of smartphones management A
Slide 20: Efforts on Work Style Reform under Pandemic
2．Expectations for the Rest of FY20 (8) Efforts on Work Style Reform under Pandemic ◆ Pursue new work styles internally and offer related solutions to customers Provide remote working solutions matched with problems and needs of customers Visualization of attendance ratio Communications using Office
Slide 21: Our M&A Strategy: Development Direction by Business Segment
3. Our M&A Strategy (1) Development Direction by Business Segment Engineering Solutions Engineering Solutions （Urban infrastructure） （NTT Group, NCCs） Expanding areas of power/air conditioning and maintenance、 Implementation of system enforcement, replacement, civil engineering and renewable energy
Slide 22: Shareholder Return Policy
4. Raising Shareholders’ Value (1) Shareholder Return Policy ◆ Our fundamental policy is to make active and stable dividend payments to all shareholders. ◆ From the FY2018 dividend, DOE was raised to around 3.5% to strengthen shareholder returns ■ FY2020 planned annual dividend: 82 yen FY17 FY18 FY1
Slide 23: Plan for shareholder returns for FY20, etc.
4. Raising Shareholders’ Value (2) Plan for shareholder returns for FY20, etc. ■ Dividend history (per share) ■ Total shareholder return (Total dividends + total acquisition of treasury stock) 80 ¥82 (Amount determined as of Nov. 2020) 70 Year-end 41 plan 50 46 Interim ¥41 FY16 FY17 FY18 FY19 FY20 P
Slide 24: Minami Kanto Branch recognized under ZEB introduction program
5. Topix (1) Minami Kanto Branch recognized under ZEB introduction program ◆ Ongoing reconstruction of the Minami Kanto Branch was recognized under the net Zero Energy Building (ZEB) introduction program as part of the Kanagawa Smart Energy Initiative implemented by the Kanagawa Prefectural Governme
Slide 25: Kyowa Exeo's credit ratings revised to A+
5. Topix (2) Kyowa Exeo's credit ratings revised to A+ ◆Our company's credit rating , which has been acquired from the Japan Credit Rating Agency (JCR) , has been upgraded to "A +" 1. Revision details Before revision After revision Long-term issuer rating Ａ Ａ＋ Rating outlook Positive Stable Bond rat
Slide 26: 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