Annual Results for the Fiscal Year Ended March 31, 2018 (FY 2017) - PowerPoint PPT Presentation

Annual Results for the Fiscal Year Ended March 31, 2018 (FY 2017) May 11, 2018 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 Annual Results for FY 2017

Contents ・・・ 2 ・・・ 20 (6) NCCs 1. Overview of FY17 Results ・・・ 21 ・・・ 3 (7) Urban Infrastructure (1) Performance Figures ・・・ 25 (8) System-Solutions ・・・ 4 (2) Orders Received ･･･ 31 (9) Measures for greater efficiency ・・・ 5 (3) Net Sales (ImprovedProductivity) ・・・ 6 (4) Operating Income ・・・ 8 ・・・ 34 (5) Cash Flow 4. Raising Shareholders’ Value ･･･ 35 (1) Payment of Higher Dividends ・・・ 9 2. Management Integration ･･･ 36 (2) Dividend Payment Plan, etc. for FY18 ・・・ 10 (1) Performance Figures ・・・ 11 (2) Overview of FY17 Results of Each Company ・・・ 37 5. Topics ・・・ 11 (3) Business Scale after Management Integration (1) Visit to Overseas Subsidiary by Minister of ･･･ 38 Internal Affairs and Communications ・・・ 12 3. Plans for FY18 ・・・ 13 (1) Performance Figures ・・・ 14 (2) Orders Received and Net Sales ・・・ 16 (3) Operating Income ・・・ 18 (4) NTT Group (Access/Network) ・・・ 19 (5) NTT Group (Mobile) － － 1 Annual Results for FY 2017

1. Overview of FY17 Results (1) Performance Figures (2) Orders Received (3) Net Sales (4) Operating Income (5) Cash Flow － － 2 Annual Results for FY 2017

1. Overview of FY17 Results (1) Performance Figures ◆ Net sales increased due to strong orders from telecom carriers and growth of orders received and sales of Urban Infrastructure ◆ Operating income reached a new high due to the effects of more efficient construction and the like ■ Overview of FY17 results (consolidated) (¥bn) FY16 FY17 Actual Plan Plan Actual YOY accuracy A B C C / A C / B 324.1 330.0 325.0 100% 98% Orders received 298.8 320.0 312.6 105% 98% Net sales (12.9%) (12.9%) (13.9%) Gross profit 38.4 41.3 43.3 113% 105% (5.9%) (5.7%) (5.7%) SG&A expenses 17.6 18.3 17.7 101% 97% (7.0%) (7.2%) (8.2%) Operating income 20.8 23.0 25.6 123% 111% (7.2%) (7.4%) (8.5%) Ordinary income 21.4 23.6 26.4 124% 112% Net income (4.6%) (4.9%) (5.8%) attributable to owners 13.7 15.7 17.9 130% 115% of parent Notes: All amounts less than ¥100m are disregarded. Figures in parentheses are ratio to net sales. － － 3 Annual Results for FY 2017

1. Overview of FY17 Results (2) Orders Received ◆ Exceeded the previous year due to strong Urban Infrastructure orders ◆ Decreased compared to the plan because orders received for SYSTEM-SOLUTIONS (new solutions) did not grow ■ YOY (consolidated) ■ Compared to plan (consolidated) (¥bn) ○ KDDI ○ SI ○ SB ○ SI ▲ NI （ new solutions ） ○ NI （ new solutions ） NCCs System- +1.8 Solutions System- ○ KDDI -7.2 Solutions ○ SB +2.5 NTT Group Urban +6.3 Infrastructure NCCs +3.0 -5.9 Urban ○ Access Infrastructure ○ Network NTT Group ○ Telecommunications ‐ Mobile facilities -16.0 +11.4 ○ Electricity supply ▲ Civil engineering 330.0 325.0 324.1 325.0 ○ Telecommunications ▲ Access facilities ▲ Network ○ Electricity supply ▲ Mobile ▲ Civil engineering ＋ 0.9 -5.0 FY16 Actual FY17 Actual FY17 Plan FY17 Actual ○ Reason for increase ▲ Reason for decrease － No increase/decrease Note: All amounts less than ¥100m are disregarded. － － 4 Annual Results for FY 2017

1. Overview of FY17 Results (3) Net Sales ◆ Increased YOY by consuming a large number of carried-over projects in each segment ◆ Decreased compared to the plan, due in part to the extension of work in NCCs and Urban Infrastructure ■ YOY (consolidated) ■ Compared to plan (consolidated) (¥bn) ー SI ▲ KDDI ▲ SI ○ NI ▲ NI （ new solutions ） ▲ SB ○ KDDI System- NCCs System- ○ SB Solutions Solutions -2.9 +2.7 -2.5 NCCs NTT Group +4.8 Urban -0.6 Infrastructure Urban Infrastructure -1.4 ○ Access NTT Group ‐ Network +7.2 -0.9 ▲ Mobile 320.0 ○ Telecommunications 312.6 facilities 312.6 ▲ Access ○ Telecommunications ▲ Electricity supply facilities 298.8 ‐ Network ○ Civil engineering ▲ Electricity supply ○ Mobile ○ Civil engineering ＋ 13.8 -7.4 FY16 Actual FY17 Actual FY17 Plan FY17 Actual ○ Reason for increase ▲ Reason for decrease － No increase/decrease Note: All amounts less than ¥100m are disregarded. － － 5 Annual Results for FY 2017

1. Overview of FY17 Results (4) Operating Income ◆ Reached a new high due to the effects of the greater efficiency of construction and the like ■ YOY (consolidated) ■ Compared to plan (consolidated) (¥bn) Elimination of projects Reduction of SG&A, etc. with deficit , etc. Others Others Improved +0.7 +0.4 Improved construction construction efficiency efficiency +1.2 +1.5 Sales mix , etc. Improved +1.6 efficiency Down due to +1.1 decrease in sales 25.6 25.6 Up due to -0.9 increase in sales 23.0 +1.8 20.8 +4.8 +2.6 FY16 Actual FY17 Actual FY17 Plan FY17 Actual ○ Reason for increase ▲ Reason for decrease Note: All amounts less than ¥100m are disregarded. － － 6 Annual Results for FY 2017

1. Overview of FY17 Results Reference: Trends in Group company profitability ◆ Profits also reached a record high in Group companies ■ Trends in operating profits over the past five years (consolidated/non-consolidated) (¥bn) (Ratio of consolidated to (1.7) (1.8) (1.8) (1.9) (1.7) non-consolidated profits ) 25.6 Group companies Exeo alone 20.8 20.7 10.5 18.3 18.4 8.3 9.6 8.3 8.3 15.1 12.4 11.2 10.0 10.0 FY13 FY14 FY15 FY16 FY17 Notes: Ratio of consolidated to non-consolidated profits = operating profits from consolidated projects ÷ operating profits from non-consolidated projects. All amounts less than ¥100m are disregarded. － － 7 Annual Results for FY 2017

1. Overview of FY17 Results (5) Cash Flow ◆ Stable cash flow ■ Cash flow (consolidated) (¥bn) FY15 FY16 FY17 15.2 Cash at beginning of FY 24.2 16.0 24.8 Operating activities 5.3 15.5 -4.5 Investing activities -13.9 -6.0 -5.1 Financing activities 0.3 -10.2 30.3 Cash at end of FY 16.0 15.2 Note: All amounts less than ¥100m are disregarded. － － 8 Annual Results for FY 2017

2. Management Integration (1) Performance Figures (2) Overview of FY17 Results of Each Company (3) Business Scale after Management Integration － － 9 Annual Results for FY 2017

2. Management Integration (1) Performance Figures ◆ Management integration with C-Cube, Seibu Electric Industry, and Nippon Dentsu is planned to take place as of October 1, 2018. ■ Purpose of Management Integration Further reinforcing the system for providing one-stop construction services all over Japan and producing synergetic effects by making efficient use of the management resources, customer bases, etc. of each company so as to further improve our corporate value ■ Profile of Each Company Company name C-Cube Seibu Electric Industry Nippon Dentsu Established 14 May,1954 3 Jul,1947 22 Oct,1947 Paid-in capital ¥4,100 million ¥1,600 million ¥1,493.93 million Chairman ： Representatives President: Chairman and President: Wataru Hashimoto Kazumi Miyakawa Toshiro Ue President: Toshihiko Kumamoto Monzen-cho, Naka-ku, Nagoya-shi, Hakataekihigashi, Hakata-ku, Isoji, Minato-ku, Osaka-shi, Osaka Head Office Aichi Fukuoka-shi, Fukuoka (Lot numbers omitted) ・ Telecommunications construction ・ Telecommunications engineering business ・ Telecommunications facilities engineering Business details ・ Solution business business business ・ Information service business ・ Others ・ ICT solution business Net sales(FY17) ¥59.8 billion ¥54.1 billion ¥37.8 billion － － 10 Number of employees 1,916 1,268 909 (as of March 31, 2018) － 10 － Annual Results for FY 2017

2. Management Integration (¥bn) (2) Overview of FY17 Results of Each Company Note: Fiscal year ended March 31, 2018 All amounts less than ¥100m are disregarded. Figures in ( ) indicate the ratio to net sales calculated by disregarding amounts less than ¥ 1 million. Item C-Cube Seibu Electric Industry Nippon Dentsu Net sales 59.8 54.1 37.8 7.3 （ 12.3 ％） 4.2 （ 7.8 ％） 4.8 （ 12.8 ％） Gross profit 4.1 （ 7.0 ％） 2.7 （ 5.1 ％） 3.8 （ 10.1 ％） SG&A expenses 3.1 （ 5.2 ％） 1.4 （ 2.7 ％） 1.0 （ 2.7 ％） Operating income 3.4 （ 5.8 ％） 1.7 （ 3.2 ％） 1.1 （ 3.0 ％） Ordinary income 2.2 （ 3.7 ％） 1.0 （ 1.9 ％） 0.7 （ 1.9 ％） Net income attributable to owners of parent (¥bn) (3) Business Scale after Management Integration Note: Total values for results for the fiscal year ended March 31, 2018 All amounts less than ¥100m are disregarded. Figures in ( ) indicate the ratio to net sales calculated by disregarding amounts less than ¥ 1 million. ① KYOWA EXEO ② Total for the three Item [Simple sum of the figures companies for the four companies] ① + ② Net sales 312.6 151.9 464.5 25.6 （ 8.2 ％） 5.6 （ 3.7 ％） 31.2 （ 6.7 ％） Operating income 26.4 （ 8.5 ％） 6.3 （ 4.2 ％） 32.8 （ 7.1 ％） Ordinary income 17.9 （ 5.8 ％） 3.9 （ 2.6 ％） 21.9 （ 4.7 ％） Net income attributable to owners of parent Number of employees 8,331 4,093 12,424 （ People ） － － 11 Annual Results for FY 2017