Slide 1: Annual Results for the Fiscal Year Ended March 31, 2020 (FY 2019)
Annual Results for the Fiscal Year Ended March 31, 2020 (FY 2019) May 19, 2020 URL: https://www.exeo.co.jp/en/ir/ We renewed our website.
Slide 2: Contents
Contents 1. Overview of FY19 Results 3. Our M&A Strategy (1) Development Direction by Business (1) Performance Figures ・・・ 2 ・・・ 23 Segment (2) Orders Received ・・・ 3 (3) Net Sales ・・・ 4 4. Raising Shareholders’ Value (4) Operating Income ・・・ 5 (1) Shareholder Return Policy ・・・ 24 (2) Plan for shareh
Slide 3: Overview of FY19 Results: Performance Figures
1. Overview of FY19 Results (1) Performance Figures ◆ Sales increased substantially thanks to organic growth and year-round contributions by the three companies in western Japan, but profit fell due to an increase in SG&A expenses. ◆ Profit for FY19 fell substantially as a result of the extraordinar
Slide 4: Overview of FY19 Results: Orders Received
1. Overview of FY19 Results (2) Orders Received ◆ Orders in urban infrastructure and system-solutions performed well, and orders exceeded our targets significantly in all segments, including the three companies in western Japan. (¥bn) ○ Telecommunications facilities ○ Electricity supply ○ Urban Civi
Slide 5: Overview of FY19 Results: Net Sales
1. Overview of FY19 Results (3) Net Sales ◆ Orders in urban infrastructure and system-solutions were favorable and grew significantly. Net sales targets were achieved in all segments including the three companies in western Japan. (¥bn) ○ Telecommunications facilities ○ Electricity supply ○ Urban Ci
Slide 6: Overview of FY19 Results: Operating Income
1. Overview of FY19 Results (4) Operating Income ◆ Operating profit decreased as the sales mix worsened and the SG&A expenses increased due to M&A and new subsidiaries. (¥bn) (Integration synergy) Integration +0.3 over Up due to synergy increase in +0.2 sales Overseas Seibu +3.1 subsidiaries Electri
Slide 7: Reference 1: Synergy with three companies in western Japan
1. Overview of FY19 Results Reference1: Synergy with three companies in western Japan ◆ The cooperation policy with the three integrated companies in western Japan has been proceeding well, and integration synergy has been steadily created. ■ While securing the profit level, concentrating operations
Slide 8: Reference 2: Trends in Group company profitability
1. Overview of FY19 Results Reference2: Trends in Group company profitability ◆ The group companies achieved significant growth, and the ratio of consolidated to non-consolidated profits more than doubled. ■ Trends in operating profits over the past five years (consolidated/non-consolidated) (Ratio
Slide 9: Overview of FY19 Results: Cash Flow
1. Overview of FY19 Results (5) Cash Flow ◆ Cash flow is stable and ample cash on hand has been secured. (¥bn) ■ Cash flow (consolidated) FY16 FY17 FY18 FY19 Cash at beginning of FY 16.0 15.2 30.3 41.4 Operating activities 15.5 24.8 12.7 17.2 Investing activities -6.0 -4.5 -17.6 -17.0 Financial acti
Slide 10: Plans for FY20: Performance Figures
2. Plans for FY20 (1) Performance Figures ◆ We strive to increase sales through organic growth, but the impact of the COVID-19 coronavirus is somewhat unclear. ◆ Although business activities are partially limited, we aim to achieve a record-high profit while improving productivity. ■ Plans for FY20
Slide 11: Plans for FY20: Orders Received
2. Plans for FY20 (2) Orders Received ◆ Orders are expected to decrease temporarily against the previous fiscal year’s large orders in urban infrastructure and the three companies in western Japan. ▲ Telecommunications facilities (¥bn) ▲ Electricity supply ▲ Access ○ Urban Civil ▲ Network engineerin
Slide 12: Plans for FY20: Net Sales
2. Plans for FY20 (3) Net Sales ◆ Although the impact of limited construction and other constraints is somewhat unclear, we focus on completing a large amount of carried-over construction work, aiming to increase sales. ▲ Telecommunications ▲KDDI facilities (¥bn) ○ SB ○ Electricity supply ○ Rakuten
Slide 13: Reference: Status of projects carried over
2. Plans for FY20 Reference: Status of projects carried over ◆ Work carried over will continue to increase because of the increased number of orders for large construction projects for urban Infrastructure with longer construction periods. ■ Transition of amount of work carried over (consolidated) (
Slide 14: Plans for FY20: Operating Income
2. Plans for FY20 (4) Operating Income ◆ Although the worsening of the mix and the increase in SG&A expenses are expected, we aim to achieve record-high income, while improving productivity. (¥bn) Improvement from Unprofitable status Sales mix Seibu ＋2.1 -2.9 Electric C-Cube Nippon Industry Dentsu U
Slide 15: NTT Group (Access/Network)
2. Plans for FY20 (5) NTT Group (Access/Network) ◆ Access construction is expected to decline, but maintenance and construction for disaster countermeasures have been increasing gradually in recent years. ◆ In line with the launch of 5G, network construction for mobile backhaul is expected to increa
Slide 16: NTT Group (Mobile)
2. Plans for FY20 (6) NTT Group (Mobile) ◆ 5G construction has begun, but it is assumed that full-scale investment in the base stations should start in or after the next fiscal year. ◆ As the construction of small base stations increases, we will cooperate with Access and undertake construction effe
Slide 17: NCCs
2. Plans for FY20 (7) NCCs ◆ Orders from KDDI are expected to recover slightly. We will continue to work actively on SB and Rakuten construction. ◆ Rakuten wireless base station construction has started nationwide, and we are working with the three companies in western Japan to respond. ■ Net sales
Slide 18: Reference: Investment Trends of Major Telecom Carriers
2. Plans for FY20 Reference: Investment Trends of Major Telecom Carriers (Source: Figures released by the telecommunications carriers) ■ NTT East/West Optical fiber ■ NTT DoCoMo (¥bn) 597.1 577.9 593.7 547.9 549.6 541.0 572.8 522.5 480.0 Unpublished 156.0 154.0 161.0 150.0 156.0 0.0 FY16 FY17 FY18 F
Slide 19: Urban Infrastructure
2. Plans for FY20 (8) Urban Infrastructure ◆ Construction for 700MHz Band TV reception measures is declining, but sales are expected to remain strong until this fiscal year. ◆ We aim to continue to win large orders for electrical work in places such as data centers. ■ Urban Infrastructure net sales
Slide 20: System-Solutions
2. Plans for FY20 (9) System-Solutions ◆ We will focus on expanding new solutions such as GIGA School and ServiceNow. ◆ We will establish a foundation for global growth mainly in the APAC region. ■ Solution Map (added value expansion plan) ■ System-Solutions net sales Enhancement of B2B sales abilit
Slide 21: Efforts for Mid- to Long-Term Growth
2. Plans for FY20 (10) Efforts for Mid- to Long-Term Growth ◆ We will further advance activities for the expansion of the existing solution business, and provide our products in combination with partner products to help customers move forward with DX. DX: digital transformation KYOWA EXEO’s own prod
Slide 22: Efforts for Mid- to Long-Term Growth: New Technologies and Areas
2. Plans for FY20 (10) Efforts for Mid- to Long-Term Growth ◆ Efforts for new technologies and areas (examples of new products that we are working on) GIGA School The GIGA School Concept, which is led by the Japanese Ministry of Education, Culture, Sports, Science and Technology (MEXT), is a 5-year
Slide 23: Efforts for Mid- to Long-Term Growth: Digitalization of Business Processes
2. Plans for FY20 (10) Efforts for Mid- to Long-Term Growth ◆ Work on the improvement of productivity through the digitalization of business processes Promotion of work innovation Improvement of expense calculation process => Automatic entry of travel and other expense ・ Improvement of desk work and
Slide 24: 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） Implementation of system enforcement, Expanding areas of power/air conditioning and maintenance maintenance area expansion ・M&A in the power/air cond
Slide 25: 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 26: 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 Total dividends 70 Total acquisition of treasury stock Year-end 13.9 41 plan Undecided 50 46 10.3 5.
Slide 27: Topics: Employee Wins Gold Medal at Skills Competition
5. Topix (1) Our company Employee Wins Gold Medal at Skills Competition ◆ Employees of Ebihara in our company successfully won the gold medal in the information- network construction category at the "The 57 National Skills Competition" held in Aichi- Prefecture for 4 days from November 15, 2019. ■ O
Slide 28: Our company selected as Nadeshiko Brand
5. Topix (2) Our company selected as "Nadeshiko Brand" ◆ In fiscal 2019, the Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange jointly selected listed companies that excel in promoting women's participation and career advancement "Nadeshiko Brand“ ,and our company selected as it’s
Slide 29: 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