Results for the Six Months Ended
September 30, 2022
November 17, 2022

Contents
1. Overview of FY22 Interim Results

3. Shareholder Return(1) Financial Highlights

・・・

4(1) Dividends, Share Buybacks

・・・

21

(2) Results Highlights(Orders Received,Net Sales)・・・5(2) Total Shareholder Return, ROE, EPS

・・・

22

(3) Results Highlights(Operating Profit)・・・

6(4) Results Highlights(Segment Information )・・・

7(5) Plan Summary・・・

9

4. Topics

2. Initiatives by Segment(1) Telecoms Carriers・・・ 11(1)Wins Gold Medal at International Skills
Competition・・・

24(2) Urban Infrastructure・・・ 13(2)Contributing to a Decarbonized Society
through Business・・・

25(3) System solutions

・・・ 16(3)Woody biomass gasification powergeneration

・・・

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(4) Structural Reform・・・ 19©2022 EXEO Group, Inc. All Rights Reserved.

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１．Overview of FY22 Interim Results©2022 EXEO Group, Inc. All Rights Reserved.

3

（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 havebeen cancelled.
©2022 EXEO Group, Inc. All Rights Reserved.

4

（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.

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（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 amortizationof goodwill.
■ Operating Profit（ billion yen ）Telecoms Carriers▲2.7

Urban infrastructure▲3.8

Unprofitable projectLump-sum amortizationof goodwill▲2.1

System Solutions

＋0.1

▲8.5

©2022 EXEO Group, Inc. All Rights Reserved.

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（４）Results Highlights（Segment Information）（billion yen）

Telecoms Carriers

Urban Infrastructure

System Solutions

Net sales
Segment profit©2022 EXEO Group, Inc. All Rights Reserved.

Special factors
・unprofitable projects 0.3B yen
・the lump-sum amortization ofgoodwill 0.3B yen

Special factors
・unprofitable projects 1.4B yen
・the lump-sum amortization of
goodwill 0.1B yen

7（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.

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（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 measuresFY2021（billion yen）

ActualA

FY2022 PlanPlan
B

YOYBーAOrders received

595.3

600.0

4.7

Net sales

594.8

600.0

5.2（7.1%）
42.3（6.4%）
38.5(▲0.7P)▲3.8

Operating profit©2022 EXEO Group, Inc. All Rights Reserved.

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２． Initiatives by Segment©2022 EXEO Group, Inc. All Rights Reserved.

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（１）Telecoms Carriers■ Trends in net sales（billion yen）

Interim Result and FY2022 Plan
Progress rate

46％

■ Trends in segment profit

・Restraining investment in mobile businessis within expectations.
・Aim to improve profit margins by shifting
personnel to growth businesses andpromoting DX.

Main Initiatives
・Using AI to improve safety quality andproductivity.
・Building flexible systems through multi-skillingand multi-career approaches.
・Reskilling shifts workforce to growth areas.

©2022 EXEO Group, Inc. All Rights Reserved.

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（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）
Taking photosof construction
sites■Quality AI（After construction）

Check sentphotos

Engineer

Pre-work inspection

EngineerSafety fitting inspection

EngineerCable banding test

Engineer

Ground clearance checkof bucket car©2022 EXEO Group, Inc. All Rights Reserved.

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（２）Urban Infrastructure■ Trends in net sales(billion yen)

Progress rate

38％

Interim Result and FY2022 Plan
・Delay in profit progress due to decrease in high profit
projects (700 MHz countermeasure construction).
・Full-year recovery due to completion of major
projects.

■ Trends in segment profit
Special factors
・unprofitable projects 0.3B yen
・the lump-sum amortization ofgoodwill 0.3B yen

Main Initiatives
・Full-scale expansion into energy business (Renewableenergy, power line connections, batteries, etc.)
・Challenges for major renewal projects in theenvironmental field(Already bid for Tochigi Green Plaza in second half).
・Invest upfront in acquiring and developing engineers(University cooperation programs, etc.)©2022 EXEO Group, Inc. All Rights Reserved.

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（２） Urban Infrastructure （ Breakdown by Business Unit ）■ Trends in net sales(billion yen)・Energy Unit・Public infrastructure Unit

・Facility infrastructure Unit

(Electricity, Environment,
Renewable energy, etc.)(Railway communications, urbancivil engineering, etc.)(700MHz Band TV reception
measures, Local 5G facilities, etc.)

Progress rate

45％

Progress rate

33％

Progress rate38％©2022 EXEO Group, Inc. All Rights Reserved.

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（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 Group⑤Substationequipment⑤Substationequipment③Laying work ④Connection work

Beach Manhole①MHinstallation

Other companies■Development plan and progressTraining

Scene of training©2022 EXEO Group, Inc. All Rights Reserved.

Electric power company②Pipe burial

Current

On-the-job training

Scene of training

Undertake the work

To offshore wind projects

Scene of on-the-job training

15（３） System Solutions■ Trends in net sales（ billion yen ）Progress rate

47％

Interim Result and FY2022 Plan
・The overall business is growing steadily, even thoughprofits are down due to unprofitable projects.
・Overseas business further expand the scale.

■ Trends in segment profit
Special factors
・unprofitable projects 1.4B yen
・the lump-sum amortization of
goodwill 0.1B yen

Main Initiatives
・Restructure business with two IT companies(EDS, ESM) at the core (to increase in recurringbusiness revenue ).
・Strengthen consulting, develop in-house AI solutions
for high-value-added business.
.Through the acquisition of Procurri, we will expand
our capabilities to offer 3R (Reduce, Reuse, Recycle)
on a global scale.

©2022 EXEO Group, Inc. All Rights Reserved.

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（３） System Solutions （ Breakdown by Business Unit ）■ Trends in net sales（billion yen）

・Overseas projects Unit

・Information system Unit

・Service Unit(Contract development, server
construction, etc.)(Recurring business such as
maintenance and operation)

Progress rate

51％

Progress rate
Progress rate

42％

40％

©2022 EXEO Group, Inc. All Rights Reserved.

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（３） System Solutions （Overseas projects）
Incorporating Procurri, which has been developing refurbishing businesses mainlyin 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
Total support for life cycle
management from system
introduction to disposal, including
applications, maintenance, with afocus on hardware provision. NW
can also be provided as a set.

©2022 EXEO Group, Inc. All Rights Reserved.

1818

（４） Structural Reform
Implement further structural reforms to accelerate efficient business operations
and restructuring of business portfolio
Initiatives through the Interim

Telecoms
Carriers（ Increaseproductivity ）Urban
Infrastructure（ Accelerate businessexpansion ）SystemSolutions（Reorganization andprofit improvement）©2022 EXEO Group, Inc. All Rights Reserved.

Initiatives in the second
half and beyond

・Integration of Construction Organizations
by Carrier(Integrated resources, flexible
construction system)
・Consolidation of Group Companies by Area
(Hokkaido, Tohoku and western Japan)

・Accelerate cross-segment personnel
exchanges(Between telecommunications
carriers and urban infrastructure
flexible resource shifting)・Construction support nationwide, newsales headquarters for Tokyo area
・Integration of energy-related functions(Renewable energy, smart energy)

・Promotion of integration of civilengineering infrastructure companies(Integrated resources, flexible
construction system)

・Consolidation of NI/SI Solutions Division
・Group reorganization of IT organizations(establishment of two core companies)(Strengthen development capabilities,expand maintenance and operationservices)

・Developing global human resources(Dispatch of overseas traineesstarted.)19

３．Shareholder Return©2022 EXEO Group, Inc. All Rights Reserved.

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（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 amountacquired in the current fiscal year announced last year).
・Plans to retire 7 million shares of treasury stock (6.0% of total shares outstanding)Treasury stock that is not needed in the future will be retired as appropriate.
■ Annual Dividends©2022 EXEO Group, Inc. All Rights Reserved.

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(2) Total Shareholder Return, ROE, EPS
Continue to increase dividends and actively acquire treasury stock to return profits toshareholders. Continue to improve capital efficiency in order to achieve the medium-term
management plan.
■ Total Shareholder Return■ ROE/EPS(billion yen)©2022 EXEO Group, Inc. All Rights Reserved.

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４．Topics©2022 EXEO Group, Inc. All Rights Reserved.

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（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©2022 EXEO Group, Inc. All Rights Reserved.

Venue

ContestantResults

Part 38
2005

Helsinki,
Finland

Daisuke KominatoGold medal

Part 39
2007

Shizuoka,Japan

Yuki Yamaguchi

Gold medal

Part 40
2009

Calgary,
CanadaShigehiro Nose

Gold medal

Part 41
2011

London,BritainHaruki Morino

Gold medal

Part 442017

Abu Dhabi,

Yoshiaki Shimizu

Gold medal

Part 462022Kyoto,Japan

Toru Ebihara

Gold medal

United ArabEmirates

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（２） Contributing to a Decarbonized Society through BusinessOur 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 of EV bike battery sharing
service（October 25 th,2022）（ Courtesy of Gachaco Co., Ltd. ）Battery swapping machines for electric motorcycles(Installed around town. Battery can be replaced at any time)©2022 EXEO Group, Inc. All Rights Reserved.

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（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.
Demonstration test at a plant inFurudono-machi, Fukushima.
(September to November 2022)
Advanced biomass gasification power
generation that does not generate tar.
⇒Toward full-scale operation from2024,Plan to phase in constructionof second gasifier.

Furudono-machi Biomass Plant in full view©2022 EXEO Group, Inc. All Rights Reserved.

Combustion of purified gas26

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 JAPANURL: https://www.exeo.co.jp/en/ir/
TEL: (81)3-5778-1073

A variety of IR materials is available forconsultation on our company website.

©2022 EXEO Group, Inc. All Rights Reserved.

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