Slide 1: Results for the Six Months Ended September 30, 2014
Results for the Six Months Ended September 30, 2014 November 2014 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 FY14 Interim Results ･･･ 3 3. Topics ･･･ 20 (1) Performance Figures ･･･ 4 (1) AID Becomes a Subsidiary ･･･ 21 (2) Orders Received ･･･ 5 (2) New Solutions Business ･･･ 22 (3) Net Sales ･･･ 6 (3) Global Business ･･･ 25 (4) Operating Income ･･･ 7 (4) Improved Productivity ･･･ 26
Slide 3: 1. Overview of FY14 Interim Results
1. Overview of FY14 Interim Results (1) Performance Figures (2) Orders Received (3) Net Sales (4) Operating Income (5) Cash Flow ‐3‐ Results for the Six Months Ended September 30, 2014
Slide 4: Overview of FY14 Interim Results: Performance Figures
1. Overview of FY14 Interim Results (1) Performance Figures ◆ Progress ahead of plan, although sales decreased YOY. ◆ Record interim operating income and operating income margin. ■ Overview of FY14 interim results (consolidated) (¥bn) FY13 FY14 FY14 Interim Interim Interim YOY Plan actual plan actua
Slide 5: Orders Received
1. Overview of FY14 Interim Results (2) Orders Received ◆ Progress ahead of both previous period and plan ◆ Continued aggressive business expansion to exceed plan during the year ■ YOY (consolidated) ■ Compared to plan (consolidated) （¥bn） ○ Public works orders ● Access ● Civil engineering ○Waste tr
Slide 6: Net Sales
1. Overview of FY14 Interim Results (3) Net Sales ◆ Achieved interim plan, despite YOY decrease ◆ Steady progress ■ YOY (consolidated) ■ Compared to plan (consolidated) (¥bn) ●Access ○Electricity facilities ○ Public works orders ● NI ●Network ○Waste treatment plants ○Mobile Environmental 320.0 320.0
Slide 7: Operating Income
1. Overview of FY14 Interim Results (4) Operating Income ◆ Steady progress, exceeding both previous period and plan ◆ Increased profitability, highest ever during first half ■ YOY (consolidated) ■ Compared to plan (consolidated) (¥bn) 22.0 22.0 22.0 20.7 Down due to Improved efficiency +0.7 Improved
Slide 8: Reference: Trends in Group company profitability
1. Overview of FY14 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 projects) (1.2) (0.9) (1.7
Slide 9: Cash Flow
1. Overview of FY14 Interim Results (5) Cash Flow ◆ Stable cash flow ■ Cash flow (consolidated) (¥bn) FY11 FY12 FY13 FY14 Interim Full Interim Cash at beginning of FY 17.6 12.3 14.6 14.6 16.2 Operating activities 16.4 7.1 3.9 9.8 23.1 Investing activities -4.5 -2.1 -1.7 -7.4 -1.3 Financing activitie
Slide 10: 2. Expectations for the Rest of FY14
2. Expectations for the Rest of FY14 (1) Performance Figures (2) Medium-Term Forecast for Projects (3) Investment Trends of Major Telecom Carriers (4) NTT Group (Access/Network) (5) NTT Group (Mobile) (6) Non-NTT Telecom Engineering (7) Environmental and Social Infrastructure (8) SYSTEM-SOLUTIONS ‐
Slide 11: Performance Figures: Plans for FY14
2. Expectations for the Rest of FY14 (1) Performance Figures ◆ Continued efforts to exceed plan during the year ■ Plans for FY14 (consolidated) (¥bn) FY13 FY14 Interim Full Interim Plan YOY A B C D D/B Orders received 143.2 304.2 149.3 320.0 105% Net sales 128.1 318.5 127.1 320.0 100% Gross profit (
Slide 12: Reference: Construction work carried over from 2Q of FY14
2. Expectations for the Rest of FY14 < Reference > Construction work carried over from 2Q of FY14 ◆ Continued high level of projects carried over in 3Q ■ Trends for value of work carried over into second half of fiscal year (from 2Q to 3Q) (consolidated) (¥bn) 129.3 131.7 133.1 125.8 107.7 FY10 Inte
Slide 13: Medium-Term Forecast for Projects
2. Expectations for the Rest of FY14 (2) Medium-Term Forecast for Projects ◆ Decrease in NTT fixed-line absorbed by other projects; increased earnings and profits to continue in the medium term ・・・ New core businesses in the future (Areas in which Kyowa Exeo can demonstrate its strengths) SYSTEM-SOL
Slide 14: Investment Trends of Major Telecom Carriers
2. Expectations for the Rest of FY14 (3) Investment Trends of Major Telecom Carriers ■ NTT East/West ■ NTT docomo (¥bn) 779.6 784.1 754.9 753.7 726.8 703.1 690.0 690.7 668.5 640.0 387.8 406.0 295.0 304.0 291.0 292.5 263.0 240.0 268.7 218.9 185.9 92.3 26.0 FY10 FY11 FY12 FY13 FY14 FY14 FY10 FY11 FY12
Slide 15: NTT Group (Access/Network)
2. Expectations for the Rest of FY14 (4) NTT Group (Access/Network) ◆ Current downward trend in fixed-line related business ◆ Expected rise in fiber-access users due to wholesaling of services ■ Net sales of NTT Group ■ NTT facilities management (fixed-line related) (fixed-line network, consolidated
Slide 16: NTT Group (Mobile)
2. Expectations for the Rest of FY14 (5) NTT Group (Mobile) ◆ LTE construction work to progress at strong pace ◆ LTE-Advanced to proceed at full pace from next fiscal year ■ Net sales of NTT Group ■ Main projects envisaged for Exeo (mobile network , consolidated) (1) Change to CA (carrier aggregatio
Slide 17: Non-NTT Telecom Engineering
2. Expectations for the Rest of FY14 (6) Non-NTT Telecom Engineering ◆ LTE construction work of NCCs also to progress at strong pace ◆ Start of construction work for 700 MHz reception ■ Non-NTT Telecom Engineering net sales (consolidated) ■ Measures for 700 MHz Band TV Reception (¥bn) 2Q Full Region
Slide 18: Environmental and Social Infrastructure
2. Expectations for the Rest of FY14 (7) Environmental and Social Infrastructure ◆ Received order for large-scale waste-processing plant ◆ Good business environment due to development of Tokyo metropolitan area, etc. ■Environmental and Social Infrastructure ■ Operation maintenance management of net
Slide 19: SYSTEM-SOLUTIONS
2. Expectations for the Rest of FY14 (8) SYSTEM-SOLUTIONS ◆ Work to achieve recovery after slow first half ◆ Further strengthen structure through M&A ■ SYSTEM-SOLUTIONS net sales (consolidated) ■ Target for expansion of new solutions orders received 10.0 (¥bn) (¥bn) 5.0 2Q Full 40 year 2.0 39.0 FY13
Slide 20: 3. Topics
３. Topics (1) AID Becomes a Subsidiary (2) New Solutions Business (3) Global Business (4) Improved Productivity ‐ 20 ‐ Results for the Six Months Ended September 30, 2014
Slide 21: AID Becomes a Subsidiary
3. Topics (1) AID Becomes a Subsidiary ◆ Strengths in system development for finance, public administration, and manufacturing ◆ Via integration of clients/resources, etc., further grow business through synergies. Company Name ADVANCED INFORMATION DESIGN CORPORATION Representative Noritaka Toya, Pre
Slide 22: New Solutions Business
3. Topics (2) New Solutions Business ◆ Targeting business worth ¥10bn by combining core technologies and developing new fields Medical, Health, Welfare Core technologies New Energy (Traditional strengths) Access engineering Network engineering Mobile engineering Software development Electr
Slide 23: New Energy and Geo-services
3. Topics ■ New Energy ■ Geo-services (GPS, digital map, and smartphone) (Case 1: Solar panels + storage batteries / EMS) (Case 1: Disaster support system) Main Targets Smartphone Targets Solar panels Storage batteries ・Municipal evacuation centers ・Municipalities ・Nationwide chain stores ・Private c
Slide 24: M2M, Server Virtualization, Medical and Health
3. Topics ■ M2M (Sensors) ■ Server Virtualization Information display Tablet Network Smartphone Virtual server Big data ■GIS (electronic map) School Away from the office Home [FY13 orders] Approx. ¥200m： NTT Group companies, etc. [FY14 orders] Approx. ¥700m: NTT Group (East and West), national unive
Slide 25: Global Business
3. Topics (3) Global Business ◆ Start of comprehensive service project in Philippines ◆ Proactive development of solutions targeted overseas ■ Comprehensive service project (Philippines) ■ MG Exeo sales trends (¥100m) 1 peso ≒ ¥2.3 10 Largest Philippine Philippine local subsidiary telecommunications
Slide 26: Improved Productivity
3. Topics (4) Improved Productivity ◆ Streamlining efforts advancing swifter than target ◆ Continued development of measures for further profit improvement ■ Enhanced profitability through cost reductions FY 2011 2012 2013 2014 –¥1.0bn –¥1.5bn –¥1.5bn Improvement Aims –¥1.0bn (cumulative –¥2.0bn) (c
Slide 27: Reference: Reorganization of Group companies
3. Topics Reference: Reorganization of Group companies ◆ Progress in reorganization of Group companies aimed at improved streamlining and optimization of resources ■ Trends in number of subsidiaries (excluding three main companies) 36 companies 34 companies 33 companies 29 companies [Jul. 2014] 18 ◇
Slide 28: 4. Raising Shareholders' Value
4. Raising Shareholders’ Value ‐ 28 ‐ Results for the Six Months Ended September 30, 2014
Slide 29: Payment of Dividends
4. Raising Shareholders’ Value (1) Payment of Dividends ◆ Continuing proactive payment of dividends ◆ Third consecutive increase from ¥24 annually to ¥32 ■ Total shareholder return ■ Dividend history (per share) (Total dividends + total acquisition of treasury stock) \32 Total dividends Total acquis
Slide 30: 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