Slide 1: Annual Results for the Fiscal Year Ended March 31, 2023 (FY2022)
Annual Results for the Fiscal Year Ended March 31, 2023（FY 2022） May 19, 2023
Slide 2: Contents
Contents ４．Initiatives to Enhance corporate １．Overview of FY2022 Results value （１）Initiatives to Enhance corporate value （１）Financial Highlights ・・・ 4 ・・・ 21 （Improving ROE） （２）Results Highlights(Orders Received, ・・・ 5 （２）M&A ・・・ 22 Net Sales) （３）Results Highlights(Operating Profit) ・・・ 6 （３）Cash Al
Slide 3: Overview of FY2022 Results
１．Overview of FY2022 Results ©2023 EXEO Group, Inc. All Rights Reserved. 3
Slide 4: Financial Highlights
（１）Financial Highlights Net sales reached a new high of 627.6 billion yen, and the amount carried forward reached another record high. Operating profit falls to 32.5 billion yen, but plans to recover in FY23. Increase dividend level to DOE4.0% and annual dividend to 120 yen. Announced acquisition of
Slide 5: Results Highlights (Orders Received, Net Sales)
（２）Results Highlights（Orders Received, Net Sales） Net sales hit a record high. Orders received also near record highs. （billion yen） ■ Orders Received ■ Net Sales Increased by 5％ YOY Increased by 6％ YOY ©2023 EXEO Group, Inc. All Rights Reserved. 5
Slide 6: Results Highlights (Operating Profit)
（３）Results Highlights（Operating Profit） Operating profit decreased due to investment restrains by mobile carriers, the occurrence of transient unprofitable projects and the lump-sum amortization of goodwill. ■ Operating Profit （ billion yen ） Telecoms Carriers ▲6.5 Unprofitable project Urban infrast
Slide 7: Results Highlights (Segment Information)
（４）Results Highlights（Segment Information） （billion yen） Telecoms Carriers Urban Infrastructure System Solutions Net sales Special factors Special factors ・unprofitable projects 0.4B yen ・unprofitable projects 1.4B yen ・the lump-sum amortization of ・the lump-sum amortization of Segment profit goodwi
Slide 8: Forecast for FY2023 Performance
２．Forecast for FY2023 performance ©2023 EXEO Group, Inc. All Rights Reserved. 8
Slide 9: Plan Summary
（１）Plan Summary Plan for continued revenue growth through expansion of urban infrastructure and system solutions. Aim to improve profitability and increase profits by further restructuring amid soaring materials prices. FY2022 FY2023 （billion yen） Actual Plan YOY A B BーA Orders received 625.6 620.0
Slide 10: Plan Summary (Segment Information)
（２）Plan Summary（Segment Information） （billion yen） Telecoms Carriers Urban Infrastructure System Solutions Net sales Segment profit ©2023 EXEO Group, Inc. All Rights Reserved. 10
Slide 11: Initiatives by Segment
3．Initiatives by Segment ©2023 EXEO Group, Inc. All Rights Reserved. 11
Slide 12: Telecoms Carriers
（１）Telecoms Carriers ■ Trends in net sales （billion yen） FY2023 Plan We expect the trend of investment restraint by telecom carriers to continue. Net sales and profits will decline, but we will work to reduce the margin of decline by restructuring the entire Group. Main Initiatives ■ Trends in segme
Slide 13: Telecoms Carriers - Structural Reform 2.0
（１）Telecoms Carriers - Structural Reform 2.0 - Implement “Structural Reform 2.0 “to accelerate organizational productivity growth in response to the rapid slowdown of telecoms carriers. Decrease in construction efficiency Organizational Integration Telecoms Carriers （ work volume decrease 、 Construc
Slide 14: Urban Infrastructure
（２）Urban Infrastructure ■ Trends in net sales (billion yen) FY2023 Plan Aggressively expand operations, particularly in energy units, which are performing well. Continued efforts to improve profits despite factoring in higher material and energy costs. Main Initiatives ■ Trends in segment profit Spe
Slide 15: 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 16: Urban Infrastructure (Deployment from Energy Units)
（２）Urban Infrastructure（Deployment from Energy Units) Aim to width out from energy units centered on data centers to peripheral business areas. Equipment of Building Air conditioning 工 LAN/WAN and hygiene 事 Server・Rack Battery Solar Power Generation Facilities Electricity/Power ©2023 EXEO Group, Inc
Slide 17: System Solutions
（３）System Solutions ■ Trends in net sales （ billion yen ） FY2023 Plan Aggressively allocate resources to highly profitable business areas by securing human resources and strengthening the system. Further improve profitability while expanding the business. Main Initiatives ■ Trends in segment profit
Slide 18: 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) ©2023 EXEO Group, Inc. All Rights Reserved. 18
Slide 19: System Solutions (Managed Services Initiatives)
（３）System Solutions（Managed Services Initiatives） Expanded managed services using technologies developed through development and construction. Challenged to transform business model to become a solution provider. IT Integrated Managed Services Operations Services Services 365 T EX S O Cloud Office S
Slide 20: Initiatives to Enhance Corporate Value
4． Initiatives to Enhance corporate value ©2023 EXEO Group, Inc. All Rights Reserved. 20
Slide 21: 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. ■ Aiming to improve ROE Increase in orders and sales Expand existing businesses
Slide 22: M&A
（２）M&A Aggressively continue M&A to increase scale and further improve profitability ■ Results 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. ・Find strategic M&A dest
Slide 23: Cash Allocation Policy
（３）Cash Allocation Policy Increase corporate value by effectively using generated cash and interest- bearing debt ■ Cash Allocation Policy (FY 2021 to FY 2025) ・Building a foundation for growth such as DX ・Maintaining Financial Soundness ⇒ Estimated size of 70 billion yen ・Funding with ESG in mind I
Slide 24: Implementation of ESG Management (Materiality)
（４）Implementation of ESG Management（Materiality） Identifying Materiality to Strengthen Sustainability Management The Four Societies We Aim For 2030Vision Carbon A Smart Society A Global A Society in which poverty and Neutral people can live and inequality are “Engineering for Fusion” Society healthy
Slide 25: Implementation of ESG Management (Materiality)
（４）Implementation of ESG Management（Materiality） Solving Social Issues through “Engineering to Connect" ●【E】 Achieving a Carbon-neutral society ●【E】 Contributing to the Circular economy Value Creation ●【S】 Building and preserving infrastructure as the foundation of society ●【S】 Contributing to local
Slide 26: ESG Management (Domestic: Environment-related businesses)
（４）Implementation of ESG Management（Domestic: Environment-related businesses） Solving social issues through environment-related businesses ■ Woody biomass power generation ■ Farming solar power generation Ashikaga Eco Park Biomass power plant Demonstration facility (Furudono-town) (Higashimatsuyama
Slide 27: ESG Management (Global: Refurbish Business)
（４）Implementation of ESG Management（Global: Refurbish Business） Aim to expand by combining carbon neutral initiatives with refurbishing business ■ Refurbish Business Carbon Footprint Standard International standards by Carbon Footprint Ltd. 4. Maintenance to certify low carbon status 3. Current stat
Slide 28: Implementation of ESG Management (Others)
（４）Implementation of ESG Management（Others） Continue various other initiatives and earn external recognition ■ Approved as a stock in MSCI Japan ESG Select Leaders Index MSCI selects companies with excellent ESG evaluation from the top 700 stocks in Japan. ■ Received the “Best Workplace for Diversit
Slide 29: Shareholder Return
5． Shareholder Return ©2023 EXEO Group, Inc. All Rights Reserved. 29
Slide 30: Dividends, Share Buybacks
（１）Dividends, Share Buybacks Beginning in FY23, the dividend policy has been changed to a 4.0% DOE basis, and the company plans to increase its dividend for 12 consecutive fiscal years (120 yen per year in FY23). Purchase of treasury stock continuously and flexibly. ■ Annual dividends Consecutive di
Slide 31: Total Shareholder Return, ROE, EPS
（２）Total Shareholder Return, ROE, EPS Enhance shareholder returns through continuous dividend increases and ongoing share buybacks. Continue to operate the business with an awareness of capital efficiency to achieve the goals of the Medium-Term Management Plan. ■ Total Shareholder Return ■ ROE/EPS （
Slide 32: Topics
6． Topics ©2023 EXEO Group, Inc. All Rights Reserved. 32
Slide 33: Expanded Neutral Hosting
（１） Expanded Neutral Hosting PT dhost, a group company and overseas subsidiary headquartered in Indonesia, has surpassed 1,500 indoor communication infrastructure sharing sites in the country. Becomes one of the largest leading companies. Construction photograph Installation equipment Shopping mall
Slide 34: Initiatives for DfMA construction
（２） Initiatives for DfMA construction Develop "Design for Manufacture and Assembly (DfMA)," a next-generation construction method, in overseas operations. Winner, an overseas subsidiary, is officially certified as "PREFAB MEP SPECIALIST" by the Singapore government DESIGN MANUFACTURING DELIVERY INST
Slide 35: Breaking a World Record at the National Skill Olympic Qualifiers
（３）Breaking a World Record at the National Skill Olympic Qualifiers Set a new world record in the "Optical Connection Speed Race" at the Qualifiers for The 61st International Skills Competition. Employees Murata and 5 others qualified for the final round of the 61st National Skill Olympic to be held
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