Exeo Group, Inc. · TSE:1951
Exeo — H1 FY2022 Earnings Presentation
28 slides from Exeo's earnings presentation, Nov 17, 2022
Slide 1: Results for the Six Months Ended September 30, 2022
Results for the Six Months Ended September 30, 2022 November 17, 2022
Slide 2: Contents
Contents 1. Overview of FY22 Interim Results 3. Shareholder Return (1) Financial Highlights ・・・ 4 (1) Dividends, Share Buybacks ・・・ 21 (2) Results Highlights(Orders Received, ・・・ 5 (2) Total Shareholder Return, ROE, EPS ・・・ 22 Net Sales) (3) Results Highlights(Operating Profit) ・・・ 6 (4) Results Hig
Slide 3: Overview of FY22 Interim Results
１．Overview of FY22 Interim Results ©2022 EXEO Group, Inc. All Rights Reserved. 3
Slide 4: Financial Highlights
（１）Financial Highlights Strong progress in both orders received and net sales. Operating profit decreased due to the impact of restrained investment in mobile business. Dividend increased to 51 yen (planned to be 102 yen for the year) Purchase of treasury stock is ongoing and 7 million shares have b
Slide 5: Results Highlights (Orders Received, Net Sales)
（２）Results Highlights（Orders Received, Net Sales） Orders received and net sales made steady progress. Net sales hit record high. ■ Orders Received ■ Net Sales （billion yen） Decreased by 1％ YOY Increased by 2％ YOY ©2022 EXEO Group, Inc. All Rights Reserved. 5
Slide 6: Results Highlights (Operating Profit)
（３）Results Highlights（Operating Profit） Operating profit decreased due to the curtailment of mobile carrier investments, the occurrence of transient unprofitable projects and the lump-sum amortization of goodwill. ■ Operating Profit （ billion yen ） Telecoms Carriers ▲2.7 Urban infrastructure ▲3.8 Un
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 0.3B yen ・unprofitable projects 1.4B yen ・the lump-sum amortization of ・the lump-sum amortization of Segment profit goodwi
Slide 8: Segment Information: Quarterly Progress
（４）Results Highlights（Segment Information）Quarterly Progress （billion yen） Telecoms Carriers Urban Infrastructure System Solutions Net sales ※Adjusted for special factors※ ※ Adjusted for special factors ※ Segment profit ©2022 EXEO Group, Inc. All Rights Reserved. 8
Slide 9: Plan Summary
（５）Plan Summary Secure orders received and net sales through growth in urban infrastructure, system solutions. Aim to achieve the full-year plan by shifting management resources to growth businesses and implementing further efficiency measures FY2021 FY2022 Plan （billion yen） Actual Plan YOY A B BーA
Slide 10: Initiatives by Segment
２． Initiatives by Segment ©2022 EXEO Group, Inc. All Rights Reserved. 10
Slide 11: Telecoms Carriers
（１）Telecoms Carriers ■ Trends in net sales （billion yen） Interim Result and FY2022 Plan ・Restraining investment in mobile business Progress rate is within expectations. 46％ ・Aim to improve profit margins by shifting personnel to growth businesses and promoting DX. ■ Trends in segment profit Main Ini
Slide 12: Telecoms Carriers (Examples of Efforts to Improve Profitability)
（１）Telecoms Carriers（Examples of Efforts to Improve Profitability） Using AI to ensure safety quality and improve work efficiency (reduce inspection operations by 50%) ■ Safety AI（During construction） ■Quality AI（After construction） Taking photos of construction Check sent sites photos Engineer Engin
Slide 13: Urban Infrastructure
（２）Urban Infrastructure ■ Trends in net sales (billion yen) Interim Result and FY2022 Plan ・Delay in profit progress due to decrease in high profit Progress rate projects (700 MHz countermeasure construction). 38％ ・Full-year recovery due to completion of major projects. Main Initiatives ■ Trends in
Slide 14: 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.) mea
Slide 15: Urban Infrastructure (Energy)
（２） Urban Infrastructure （ Energy ） Training engineers to enter offshore wind business. Four first-term students and eight second-term students are undergoing on-the-job training. ■Construction image Construction range of Exeo Group ⑤Substation ⑤Substation equipment equipment ③Laying work ④Connectio
Slide 16: System Solutions
（３） System Solutions ■ Trends in net sales （ billion yen ） Interim Result and FY2022 Plan Progress rate ・The overall business is growing steadily, even though 47％ profits are down due to unprofitable projects. ・Overseas business further expand the scale. ■ Trends in segment profit Main Initiatives S
Slide 17: 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) Progress rate 51％ Progress rate Progress rat
Slide 18: System Solutions (Overseas projects)
（３） System Solutions （Overseas projects） Incorporating Procurri, which has been developing refurbishing businesses mainly in Europe and the United States, into the Group and expanding its global offering structure. Restructuring underway to maximize synergies with Asia-focused Arco. Procurri Arco To
Slide 19: Structural Reform
（４） Structural Reform Implement further structural reforms to accelerate efficient business operations and restructuring of business portfolio Initiatives in the second Initiatives through the Interim half and beyond Telecoms ・Integration of Construction Organizations ・Accelerate cross-segment perso
Slide 20: Shareholder Return
３．Shareholder Return ©2022 EXEO Group, Inc. All Rights Reserved. 20
Slide 21: Dividends, Share Buybacks
（１） Dividends, Share Buybacks ・Expected to increase dividend for 11 consecutive years based on DOE of 3.5% (Interim: 51 yen, Annual: 102 yen). ・Acquisition of treasury stock continues (7 billion yen including the amount acquired in the current fiscal year announced last year). ・Plans to retire 7 mil
Slide 22: Total Shareholder Return, ROE, EPS
(2) Total Shareholder Return, ROE, EPS Continue to increase dividends and actively acquire treasury stock to return profits to shareholders. Continue to improve capital efficiency in order to achieve the medium-term management plan. ■ Total Shareholder Return ■ ROE/EPS (billion yen) ©2022 EXEO Group
Slide 23: Topics
４．Topics ©2022 EXEO Group, Inc. All Rights Reserved. 23
Slide 24: Wins Gold Medal at International Skills Competition
（１） Wins Gold Medal at International Skills Competition At the International Skills Competition (10/15 to 19: In Kyoto, Japan), employee Ebihara won 6th gold medal in our company! Our company employees’ international competition results Venue Contestant Results Part 38 Helsinki, 2005 Finland Daisuke
Slide 25: Contributing to a Decarbonized Society through Business
（２） Contributing to a Decarbonized Society through Business Our company has formed a comprehensive partnership with Gachaco Co., Ltd * to install and maintain battery swaps for electric motorcycles. *Gachaco Co., Ltd:Bike sharing company of ENEOS, Honda, Kawasaki, Suzuki and Yamaha Opening ceremony
Slide 26: Woody biomass gasification power generation
（３）Woody biomass gasification power generation Construction is underway on two woody biomass power plants (Furudono -machi, Ashikaga town) in preparation for the start of its own power sales business. Planned to be fully operational in 2024 or later in collaboration with local governments. Demonstra
Slide 27: 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 28: Engineering for Fusion
Engineering for Fusion Connecting our world - to all our tomorrows EXEO