Slide 1: Results for the Six Months Ended September 30, 2016
Results for the Six Months Ended September 30, 2016 November 2016 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 FY16 Interim Results ･･･ 2 (5) NTT Group (Mobile) ･･･ 17 (1) Performance Figures ･･･ 3 (6) NCCs ･･･ 18 (2) Orders Received ･･･ 4 (7) Urban Infrastructure ･･･ 19 (3) Net Sales ･･･ 5 (8) SYSTEM-SOLUTIONS ･･･ 20 (4) Operating Income ･･･ 6 (9) Improved Productivity ･･･ 27 (5) Cas
Slide 3: 1. Overview of FY16 Interim Results
1. Overview of FY16 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, 2016
Slide 4: Overview of FY16 interim results (consolidated)
1. Overview of FY16 Interim Results (1) Performance Figures Both orders received and net sales up YOY due to strong NTT Group orders Operating income up from both YOY and plan due to improved efficiency ■ Overview of FY16 interim results (consolidated) (¥bn) FY15 FY16 FY16 Interim Interim Interi
Slide 5: Orders Received
1. Overview of FY16 Interim Results (2) Orders Received ◆ Exceeded the previous year due to strong NTT Group and Urban Infrastructure orders ◆ Overachieved plan with NTT Group orders boosting overall orders ■ YOY (consolidated) ■ Compared to plan (consolidated) (¥bn) 〇 ＮＩ 305.0 ● ＮＩ 305.0 300.4 305.
Slide 6: Net Sales
1. Overview of FY16 Interim Results (3) Net Sales Up YOY due to completion of work carried over from previous fiscal half and strong orders Down from plan because completion of part of construction jobs was carried over to next fiscal half ■ YOY (consolidated) ■ Compared to plan (consolidated) (
Slide 7: Operating Income
1. Overview of FY16 Interim Results (4) Operating Income Up YoY and from plan due to cost reduction by improved efficiency ■ YOY (consolidated) ■ Compared to plan (consolidated) (¥bn) 〇 Profit increase by large construction jobs 20.0 20.0 20.0 〇 Sales mix 〇 Sales mix 18.4 ● Cost deterioration due
Slide 8: Trends in Group company profitability
1. Overview of FY16 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) (1.7) (1.6)
Slide 9: Cash Flow
1. Overview of FY16 Interim Results (5) Cash Flow ◆ Stable cash flow ■ Cash flow (consolidated) (¥bn) FY13 FY14 FY15 FY16 Interim Full Interim Cash at beginning of FY 14.6 16.2 24.2 24.2 16.0 Operating activities 9.8 23.1 9.9 5.3 17.9 Investing activities -7.4 -2.8 -3.3 -13.9 -2.0 Financing activiti
Slide 10: 2. Expectations for the Rest of FY16
2. Expectations for the Rest of FY16 (1) Performance Figures (2) Medium-Term Management Plan（FY16-FY20） (3) Investment Trends of Major Telecom Carriers (4) NTT Group (Access/Network) (5) NTT Group (Mobile) (6) NCCs (7) Urban Infrastructure (8) SYSTEM-SOLUTIONS (9) Improved Productivity －9－ Results f
Slide 11: Performance Figures: Plans for FY16
2. Expectations for the Rest of FY16 (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 FY16 (consolidated) (¥bn) FY15 FY16 Interim Full Interim Plan YOY A B C D D/B Orders received 140.8 300.4 154.
Slide 12: Construction work carried over from 2Q of FY16
2. Expectations for the Rest of FY16 Reference: Construction work carried over from 2Q of FY16 ◆ Work carried over into next fiscal half at all-time high ■ Trends for value of work carried over into second half of fiscal year (from 2Q to 3Q) (consolidated) (¥bn) 156.6 138.6 131.7 133.1 125.8 FY12 In
Slide 13: Medium-Term Management Plan (FY16–FY20)
2. Expectations for the Rest of FY16 (2) Medium-Term Management Plan (FY16–FY20) ■ 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 bu
Slide 14: Business environment and target portfolio
2. Expectations for the Rest of FY16 (2) Medium-Term Management Plan (FY16–FY20): Business environment and target portfolio FY20 FY15 13% 25% Expansion of sales and 23% ¥287.4bn business domains by ¥400.0bn 50% development into new domains 64% 25% Increased traffic despite reduced fixed-line investm
Slide 15: Medium-Term Management Plan: Concept of Growth
2. Expectations for the Rest of FY16 (2) Medium-Term Management Plan (FY16–FY20) : Concept of Growth (¥bn) Expand engineering peripheral businesses by combining existing 4,000 400 technologies and services Provide total solutions to ICT and IoT-related business Expand business through M&A and
Slide 16: Investment Trends of Major Telecom Carriers
2. Expectations for the Rest of FY16 (3) Investment Trends of Major Telecom Carriers ■ NTT East/West ■ NTT DoCoMo (¥bn) 754.9 753.7 690.7 703.1 661.8 626.6 583.4 595.2 585.0 545.0 387.8 406.7 365.4 339.0 291.0 263.0 224.0 177.0 218.9 165.0 FY12 FY13 FY14 FY15 FY16 Plan FY12 FY13 FY14 FY15 FY16 Plan
Slide 17: NTT Group (Access/Network)
2. Expectations for the Rest of FY16 (4) NTT Group (Access/Network) Hikari collaboration has highlighted new demand for FTTH Maintenance jobs of aging facilities have increased due to NTT’s measures to ease burden for ensuing years ■ Net sales of NTT Group ■ NTT facilities management (fixed-line
Slide 18: NTT Group (Mobile)
2. Expectations for the Rest of FY16 (5) NTT Group (Mobile) LTE-Advanced construction work at full pace Orders received exceed target due to frontloaded orders for negotiations and consulting work ■ Net sales of NTT Group ■ NTT DoCoMo Network Development (mobile network, consolidated) Video Vide
Slide 19: NCCs
2. Expectations for the Rest of FY16 (6) NCCs Orders received in Hokkaido area surge by winning orders for a combination of construction and maintenance of KDDI facilities Construction jobs for traffic are likely to increase in second fiscal half ■ Net sales of NCCs (consolidated) ■ Trial consol
Slide 20: Urban Infrastructure
2. Expectations for the Rest of FY16 (7) Urban Infrastructure ◆ Electrical construction and power pole elimination related to Tokyo metropolitan area redevelopment remain strong ◆ Expand government communication construction through disaster wireless, road telecommunications, etc. ■ Status of Large
Slide 21: SYSTEM-SOLUTIONS
2. Expectations for the Rest of FY16 (8) SYSTEM-SOLUTIONS ◆ The IoT and cloud fields are markets that are expected to rapidly grow ◆ Expand new solutions toward further growth ■ SYSTEM-SOLUTIONS net sales ■ Forecast of IoT Market in Japan (consolidated) (Trillions of yen) 15 (Compound Average Growth
Slide 22: Performance and future initiatives of new solutions
2. Expectations for the Rest of FY16 Reference: Performance and future initiatives of new solutions ¥3.8bn 4 4 3 3 ¥2.1bn ¥1.8bn 2 2 New energy 1 ¥900m 1 0 field 0 15 16 15 16 ・ Regional power companies ・ Power Producers and Launched survival power supply (March) Suppliers (PPSs) Expand business in
Slide 23: Energy Viewer July launch
2. Expectations for the Rest of FY16 Reference: Energy Viewer July launch ◆Energy management system for small and midsize companies (low volume, high voltage / low voltage, non-residential) ◆Business model based on supplying to power producers with service fees as revenue source Energy Viewer cloud
Slide 24: Cloud Integration Engineering
2. Expectations for the Rest of FY16 Reference: Cloud Integration Engineering* Bolster partnership with Microsoft in corporate communication and IoT fields Existing Telecommunications Cloud Business Groupware Storage Authentication IoT Big Data Mail Cloud PBX Server processing /Analysis (1) Conduct
Slide 25: Geospatial Business Development
2. Expectations for the Rest of FY16 Reference: Geospatial Business Development Geo services to meet different user needs Integrating management with WHERE to accelerate geospatial pioneering business using beacon (transmitters that can be placed anywhere) and other technologies. Develop mesh-ne
Slide 26: Geospatial Business: Participation in Exhibition
2. Expectations for the Rest of FY16 Reference: Geospatial Business Development: Participation in Exhibition EXBeacon ■CEATEC JAPAN 2016 October 4 (Tue.) to 7 (Fri.) at Makuhari Messe Products by WHERE were displayed in the booth of Bluetooth SIG, Inc. EXBeacon Product Debut People from various
Slide 27: Global business initiatives
2. Expectations for the Rest of FY16 Reference: Global business initiatives ■ MG Exeo sales trends （¥100m） 10 5 0 FY11 FY12 FY13 FY14 FY15 FY16 Plan MG Exeo (Philippines) as a base for development across SE Asia ・Development of ICT technology educators in the Philippines Philippines → Spread to othe
Slide 28: Improved Productivity
2. Expectations for the Rest of FY16 (9) Improved Productivity ◆ FY15 targets achieved ◆ Continued measures to improve profits ■ Enhanced profitability through cost reductions ＦＹ 2013 2014 2015 2016 ¥1.5bn ¥1.5bn ¥1.0bn ¥1.0bn Improvement Aims (cumulative ¥5.0bn) (cumulative ¥3.5bn) (cumulative ¥6.0
Slide 29: Reorganization of Group companies
2. Expectations for the Rest of FY16 Reference: Reorganization of Group companies ◆ Accelerated reorganization of Group companies aimed at improved streamlining and optimization of resources ◆ Deployed a flexible personnel shift to the Tokyo Metropolitan Area ■ Trends in number of subsidiaries (excl
Slide 30: 3. Raising Shareholders' Value
3. Raising Shareholders’ Value (1) Payment of Dividends －29－ Results for the Six Months Ended September 30, 2016
Slide 31: Payment of Dividends
3. Raising Shareholders’ Value (1) Payment of Dividends Annual dividend up ¥8 YoY to ¥46, acquisition of ¥300m of treasury stock Targeting 3% DOE and continued stable mid- to long-term dividend rise ■ Dividend history (per share) ■ Total shareholder return (Total dividends + total acquisition of
Slide 32: 4. Topics
4. Topics (1) The National Skills Competition (Information Network Cabling) －31－ Results for the Six Months Ended September 30, 2016
Slide 33: The National Skills Competition (Information Network Cabling)
4. Topics (1) The National Skills Competition (Information Network Cabling) Won the gold medal in the national competition in October 2016 Scheduled to attend the WorldSkills Competition that is due next year in Abu Dhabi, UAE, as representatives of Japan This was our sixth gold medal in the n
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