EXEO Group
Corporate Profile
Jun. 2024

1. About Us(1) Corporate Profile（As of March 31, 2024）
EstablishedMay 17, 1954

Representatives

President and CEO: Tetsuya Funabashi

Paid-in capital¥6,888 million

listed exchange

Listed on TSE Prime (Code: 1951)
Trading unit: 100 shares

StocksTotal number of issued shares 106,812,419 shares
Number of shareholders 45,458(Increase to 213,624,838 shares due to stock split on April 1, 2024)

Consolidated net sales
RatingNumber of employees
Head office¥614.0 billion
Japan Credit Rating Agency, Ltd. (JCR) A + (stable)
Consolidated total: 17,056
3-29-20 Shibuya, Shibuya-ku, Tokyo 150-0002, Japan

Number of business offices

Branch offices: 12

Consolidated subsidiaries

142

Fiscal year-end© 2024 EXEO Group, Inc. All Rights Reserved.

Sales offices: 23

March 312

1. About Us(2) Corporate History(billion yen)

■Transition of consolidated net sales

2021: RYOSEI,KIDOH,KOYO,IT-it

Note) Net before FY1991 are non-consolidated sales.

2019: DeClout,Winner,KDT,SPS,CPU

600
6,000

2018: C-Cube, Seibu Electric Industry andNippon Dentsu ,KOHKEN,LAE
5,000
500

the Medium-Term Management Plan
(FY21-FY25)

2014: AID
2011: ICOMSYSTECH
2010: Ikeno Tsuuken(Now:Exeo Tech)

4,000
400

2005: KANAC

2004: Daiwa Densetsu,
Wako Engineering (Now: Exeo Tech)

3,000
300

2001: Merger with Showa Technos
2,000
200

1,000
100

Net Sales￥630.0 billion

Operating profit￥47.0 billion (7.5%)

ROE

9.0% or more

EPS

280 yen or more

1998: Entered the NI business

1954: Company established1986: Entered the environment business
1982: Entered the SI business

0

1954年

1960年

1970年

1980年

1990年

Kyowa Densetsu (37 years)(Foundation period) Building telecommunications
facilities was a priority mission.
Strengthened the foundation for building
telecommunications facilities and expanded businessdomains gradually.
★ Established a brand for Kyowa as a builder oftelecom facilities© 2024 EXEO Group, Inc. All Rights Reserved.

2000年

2010年

2020年

2030

2040

2050

Kyowa Exeo Corporation (30 years)

EXEO Group(Business expansion) Expanded business,
establishing a telecommunications constructiongroup and developing solutions★ Established a brand for Exeo as anengineering company.

(DX, innovation and Group management)
Will promote global expansion and accelerate
growth, responding to the digital shift.
★ EXEO Group will enter a new stage.

3

1. About Us（3） Vision and Purpuse
2030 Vision

Engineering for Fusion～Connecting our world – to all our tomorrows～"Purpose“Group Purpose

Role our company shouldplay in society.

“2030 Vision“
Where our company Goes in 2030.

FutureCreate the "common sense" of the future by"connecting power.“

Carbon-neutral
society

All people, regardless of region or generation, can use theinfrastructure that supports their lives as a matter of courseand pursue happiness freely. That is the rich world that the
EXEO Group aims for.
Our company will continue to refine its technology andconnect all aspects of knowledge, from hardware to digital, tocreate new "common sense" with its partners in a rapidlychanging society.

© 2024 EXEO Group, Inc. All Rights Reserved.

Create the "common
sense" of the future by"connecting power."

Smart society
where people canlive healthily andvividlya society inwhich poverty
and inequality
are eliminatedSociety thatenjoys global
diversity41. About Us(4) Segment Overviews

Railroad
communications
Tunnel equipment

Biomass power
generation
Waste-treatment plant

Constructing electrical andair-conditioning facilities

Mobile basestations

FTTH
Sensor networks(social infrastructure)

Agriculture
ICT

Optical fiber

Mega solar
power station

Networks fortelecommunication
offices

SOA, billing
Cloud/
data center

Solar power
generators

HEMS,
smart community

Mobile basestations

Net Sales
FY23

Segment

ENGINEERING-SOLUTIONS

Telecoms
Carriers

NTT Group

199.4

NCCs

54.0

Urban Infrastructure© 2024 EXEO Group, Inc. All Rights Reserved.

177.2

System-Solutions

183.3

Total

614.0

Network/servers,
Wi-Fi, security

Civil engineering(reduction of above-street wiring)

Optical fiberconnected offices

CCTV anddigital signage

CATV(¥ bn)

SystemSolutions

29.8%

32.5%

Telecoms
Carriers(NTT Group)

28.9%

UrbanInfrastructure

Telecoms
carriers(NCCs) 8.8%

5

1. About Us(4) Segment Overviews — Telecoms Carriers◆ EXEO Gruop’s core business, nurtured since the company was founded more than 60 years ago
・NTT Group We build and maintain telecommunications facilities for NTT Group companies.
・NCCs
We design, construct, and maintain telecommunications facilities for KDDI, Softbank, Rakuten, and other customers.
Mobile phone base station
Home Networking
In-station facilities oftelecommunications
carriers

Home

Communications cables (optical fiber)

Communications tunnels(underground conduits, service tunnels)

Total 41.3%
Telecoms
Telecoms
Carriers
Carriers(NTT Group)(NTT Group)

Access engineering

Construct mobile
Base stations© 2024 EXEO Group, Inc. All Rights Reserved.

Network engineering

Construct in-building
mobile communication systems

Electrical Equipment construction

Maintain mobile
base stations

32.5%

38.1%

Telecoms Carriers(NCCs) 8.8%
6

1. About Us(4) Segment Overviews — Urban Infrastructure◆ Using the electrical and civil engineering skills developed in our telecommunications infrastructurebusiness to build a more convenient society
・Urban civil engineering works involving to eliminate utility poles by laying electrical and to construct tunnel with non-cutting method
・Construction and maintenance of various telecommunications infrastructure facilities for municipalities,
government agencies, CATV companies, railway companies and private companies
・Constructing electrical and air-conditioning facilities for office buildings, data centers, and apartments
・Renewable energy-related works such as solar power generation and biomass boilers
・Designing, constructing, operating, and maintaining water and waste-treatment plants

Eliminating utility poles by laying electrical

Tunnel construction with non-cutting method

Maintenance work on underground facilities

UrbanInfrastructure

28.9%

Constructing electrical in office building© 2024 EXEO Group, Inc. All Rights Reserved.

Solar power
generation facilities

Plant operation and maintenance services

7

1. About Us(4) Segment Overviews — System Solutions◆ Using information and communications technology to provide total solutionsin the SI and NI fields
・System Integration (SI)Provision of large-scale entrusted development for the public sector, telecommunications,manufacturing, and the financial industry and provision of a solution to business process reformand operation support

・Network Integration (NI)Offering network solution services covering servers, wireless networks, security, cloud computing,imaging, EMS , and sensors

・Overseas projects

Construction and maintenance of overseas telecommunications infrastructure, provision of
network solutions services

SystemSolutions
DigitalTransformation(DX)Managed services(available 24/7)© 2024 EXEO Group, Inc. All Rights Reserved.

IT infrastructure and operational optimization

Operational automation

Cyber-security measures

Supporting the operations of local governments

29.8%
26.0%

8

1. About Us(5) Group Structure and Business Bases■ Group Structure (as of March 31, 2024)
Major Consolidated Subsidiaries (5 companies)

Seibu ElectricIndustry

C-CubeNippon Dentsu

Daiwa Densetsu

Exeo Tech

Other Consolidated Subsidiaries（137 companies）The following are major companies
Telecom
carriers

EXEO Engineering Hokkaido, EXEO Engineering Tohoku, EXEO Engineering West Japan,
Shinyei Tsushin, Suncrex, KANAC, HIKARI PROGRESS, K. Technos, Exeo Mobile, Denseisya, KDT（Shinyei Tsushin, Suncrex, and Exeo Mobile merged on 2024.4.1 to form EXEO Engineering）

Urban
infrastructure
SystemSolutions
Overseas
projects

Exeo Infra, KOHKEN, RYOSEI, Eiwa-Builtech, KIDOH CONSTRUCTION, KOYO ENGINEERINGSANETSU, ISEKI Poly-Tech, OOKUNIYAEDS, ESM, AID, WHERE, EXEO Core Innovation, SUN PLANNING SYSTEMS, CPU
EXEO GLOBAL、Leng Aik Engineering、 Winner Engineering（Singapore）
MG EXEO NETWORK（Philippines）Procurri （Singapore, United States of America , England）© 2024 EXEO Group, Inc. All Rights Reserved.

91. About Us（6）Business Areas

Planning

Operation
maintenance

EXEO Group
Business
DomainDevelopment

Construction© 2024 EXEO Group, Inc. All Rights Reserved.

101. About Us(7) Recent Performance Trends(billion yen)

© 2024 EXEO Group, Inc. All Rights Reserved.

11

2. 2030 Vision, the Medium-Term Management Plan (FY2021-FY2025)（1）2030 Vision

2030 Vision

Engineering for Fusion
Engineering connecting everything insociety to the future

Vision of the Exeo Group・Exeo's universal mission is to solve social issues.

20XX

・The Group has the ability to connect and integrate
diverse types of engineering through innovation.

2030

・Our goal is to rise to challenges to be a corporategroup that is needed in Japan and around the world.

Value creation forsustainable growth2025

Medium-Term
Management Plan
(FY2021-FY2025)
2020© 2024 EXEO Group, Inc. All Rights Reserved.

Challenge
1

Innovation to solve issues

Challenge
2

Engineering to solve issues

Challenge
3

ESG management122. 2030 Vision, the Medium-Term Management Plan (FY2021-FY2025)（2）Into an Age of Revolutionary Change
Drastic social and economic change is occurring around the world.
The entire world is facing the unprecedented crisis of the COVID-19 pandemic. At the same time, people's
awareness of human rights issues, including diversity and race problems, has increased, and environmental issues
have become a common challenge faced by all. In this environment, technological innovation has the power to radicallychange every business. While some businesses will decline, some new services will be able to quickly expand globally.

Social awareness of the issues the world is facing is changing as the SDGs become widely known around the world.

◆Social issues
Depopulation and hollowing-out
due to a declining population

Environmental destruction,
depletion of resources

Aging infrastructure andnatural threats

Global warming and climate change due toCO2 emissions⚫ The effects of microplastics on ecosystems⚫ The depletion of resources associated witheconomic growth⚫

⚫

Change from goods toexperiential services

Changes in social awareness⚫

Renovation of aging infrastructure⚫ Preparation for frequent natural disasters⚫ Response to the new normal created by the
COVID-19 pandemic

Declining birthrate and aging population,evident decline of the working-age population⚫ Depopulation and aging in rural areas⚫ Hollowing-out and the decline of cities◆Changes in industry and society
Rapid technological innovation
Development of information andcommunications technology, including thechange from 5G to 6G⚫ Changes in everyday life due to AI and robotics⚫ Signs of a new society due to DX (Society 5.0)⚫

© 2024 EXEO Group, Inc. All Rights Reserved.

Change of services from ownership to use,such as XaaS
⚫ Providing added value through digital services⚫ Changing the business model to create
new businesses⚫

Increasing awareness of human rights,
including LGBTQ rights⚫ Progress in diversity and inclusion⚫ SDGs and ESG as essential indicators⚫

13

2. 2030 Vision, the Medium-Term Management Plan (FY2021-FY2025)（3）Target Business Portfolio in 2030
To build a robust management foundation that is less affected by the economy and social conditions, Exeo
will expand Urban Infrastructure and System-Solutions to make sales in each of its segment almost equal
in FY2030.

2020

2015

SystemSolutions

SystemSolutions13%

Telecoms
Carriers

27%

2025

SystemSolutions30%

Telecoms
Carriers

Urban

Telecoms

Infrastructure

Carriers

23%

Urban

64%

Infrastructure

Infrastructure

26%

30%

・Integration of three companies inthe same industry in western Japan・Expansion of operations throughM&A activities
・Promotion of global business© 2024 EXEO Group, Inc. All Rights Reserved.

47%

2030

SystemSolutions

Telecoms
Carriers

40%

Urban

・Entry into the social infrastructure
renovation business・Expansion of the renewable energy
business
・Entry into a new phase in the global
business

Urban
Infrastructure

・Expansion into new business fields
・ESG management to enhance
corporate value
・To become a company that contributes
to the achievement of the SDGs
14

2. 2030 Vision, the Medium-Term Management Plan (FY2021-FY2025)（4）Targets in the Medium-Term Management Plan

• Net sales: ¥630.0 billion• ROE: 9.0% or more

FY2025Results targets • Operating profit: ¥47.0 billion (7.5%) • EPS: ¥140 or more

(Taking into account the stock split on 2024.4.1)

Strategies in each businessTelecoms
Carriers

Actively developing 5G;
enhancing profitability andproductivity

Urban
Infrastructure

Developing fields— advancing digitaltransformation in construction

SystemSolutions

Focusing onhigh value-added business— expanding recurring business© 2024 EXEO Group, Inc. All Rights Reserved.

Business foundation
Safety, quality,
BCP

Environment,
energyFinancialstrategy

Advancement
of DX

Human
resources
strategyGroupmanagement152. 2030 Vision, the Medium-Term Management Plan (FY2021-FY2025)（5）Strategies in Each Segment

Telecoms
Carriers

Construction of 5G infrastructure
Improve profitability and productivity

Urban
Infrastructure

SystemSolutions

Developing fields - advancing
digital transformationin construction

Focusing on high value-added
business- expanding
recurring business© 2024 EXEO Group, Inc. All Rights Reserved.

・Developing many skills
・Digital transformation, offshoring・Integrating operations

Becoming a partner that builds
optimal communications
environments for customers

・Entering the environment andenergy businesses
・Strengthening the infrastructure
renovation business・Actively utilizing BIM/CIM, AI, etc.

Providing engineering toenhance resilience

・Pursuing new technologies,
advancing the DX of customers
・Cultivating XaaS engineers
・Offshoring, improving development
processes

Evolving intoa solution provider

16

2. 2030 Vision, the Medium-Term Management Plan (FY2021-FY2025)（6）Status of Initiatives（Urban Infrastructure：DC）

Investment in domestic data centers by major cloud providers grows.
・ US cloud providers have announced investments of
Shifted resources to data centersover 4 trillion yen.
・ Consolidation of resources from other businesses and and other electrical equipment
projects.
group companies.
・ Consideration of responses to high heat generation,such as generative AI and GPU chips.
From Group
companies

工事
From all parts ofthe country

From other businesses, such
From all parts of as the telecommunications
the country
carrier business© 2024 EXEO Group, Inc. All Rights Reserved.

17

2. 2030 Vision, the Medium-Term Management Plan (FY2021-FY2025)（6） Status of Initiatives （Urban Infrastructure：Environmental business）

Contribute to reducing environmental impact through renewable and smart
energy projects.
■ Woody biomass power generation

Ashikaga Eco Power (Operation
started in March 2024).

Start selling theelectricity generated.

Furudono Ronden Eco Power（Operation will
start in August 2024.）© 2024 EXEO Group, Inc. All Rights Reserved.

■ Smart energy

Grid Storage Batteries（ NTT Anode Energy)

Strengthening
business cooperation

EV charging infrastructure （Plugo）
18

2. 2030 Vision, the Medium-Term Management Plan (FY2021-FY2025)（6） Status of Initiatives （ System Solution ）Total support for customers‘ DX promotion by maximising the use of the Group’s
assets, with EXEO Digital Solutions, Inc.（EDS） and EXEO System Management,
Inc.（ESM） at the core.
Customers’
DX support
Consultancy/Apps/AI

Maintenanceand Operations ・
BPO

Cross-selling and developing successful models
by utilizing the Group's customer base
・・・
Group

Group

© 2024 EXEO Group, Inc. All Rights Reserved.

Group

機能分担

Group

ESM

Group

Group management

EDS

IT infrastructure（ NW/Security etc）

Operational consolidation and efficiency ／Expansion of managed services【Typical initiatives】
・ Recruitment and training of upstream
consultants.
・ Agile development, including low-code.
・ Nearshore and offshore development.
・ Provision of advanced technologies suchas generative AI.
・ Enhanced security, including SASE andIOWN.
・ IT lifecycle provision, including refurbish.

EXEO Group19

2. 2030 Vision, the Medium-Term Management Plan (FY2021-FY2025)（7）ESG Goals© 2024 EXEO Group, Inc. All Rights Reserved.

20

3. Other topics（1）Practicing ESG Management (Environment)
Accelerate efforts to combat climate change to contribute to the realization of the SDGs.
■Endorsing the TCFD Recommendations and Joining the TCFD Consortium.
⇒Promote disclosure of non-financial information.

■Established the “Sustainability Promotion Office” and “Sustainability Committee“.
■Calculation of greenhouse gas emissions for the entire Group and establishment of
reduction targets⇒Scope 1 and 2 aim to be carbon neutral by 2050.
Classification

Emissions(t-CO2)

Contents※１

Scope１

Direct emissions of greenhouse gases by businesses

60,400

Scope２

Indirect emissions associated with the use of electricity, heat, andsteam supplied by other companies

26,183

Scope３

Indirect emissions from the supply chain (emissions from othercompanies related to business activities)

1,728,553※1：Emissions in FY 2020
© 2024 EXEO Group, Inc. All Rights Reserved.

Reduction targets for
FY 2030※２▲42%
Carbon neutral infiscal 2050
▲25%

※２：Compared to fiscal 202021

3. Other topics（2）Practicing ESG Management (External Evaluation)

Social and governance-related initiatives continue to be implemented andexternal evaluations obtained.

■Recognized as a "A-" by CDP for excellence in climate action and information disclosure
CDP, a London-based non-governmental organization (NGO) that works internationally to disclose
environmental assessments, rates companies on a scale of one to eight.
The "A-" rating is the second highest rating.

■ Received the “Best Workplace for Diversity＆Inclusion” ,the highest evaluation in ”D&I Award 2023”.
Certification based on the Diversity Score; an index developed by Job rainbow
that visualizes the promotion of corporate diversity.

■ Received silver certification for “PRIDE Index 2023”.
An evaluation index for LGBTQ and other sexual minorities in the workplace developedby “work with Pride”, a voluntary organization.

© 2024 EXEO Group, Inc. All Rights Reserved.

22

3. Other topics（3）Disaster Relief AssistanceEngaged in reconstruction assistance activities following the Noto Peninsula
earthquake of 2024.

・ A total of 6,000 people acrossthe Group have been assisted
in the restoration of
telecommunications
infrastructure.
・Provision of our own 'survival
power supplies' and 'multichargers' to various telecoms
companies.

© 2024 EXEO Group, Inc. All Rights Reserved.

23

3. Other topics（4） Shareholder returns, etc.
From FY23, the dividend policy has been changed to a 4.0% DOE basis, and we plans to increase
dividends for 13 consecutive fiscal years (interim 31 yen, annual 62 yen).
Purchase of treasury stock continuously and flexibly.
Cancellation of 3 million treasury shares at the end of November 2023. 2-for-1 stock split in April 2024.

■ Annual Dividends and Share Price

Closing price in FY23

Annual Dividens¥1,619Stock price at the end of fiscal year

62.0
60.0
Dividends has increased for 19 consecutive years from
FY2005 to FY2023

48.0（Selected as a component of "Nikkei Progressive andHigh Dividend Index" in June 2023）

40.0

51.0

41.0

35.0

23.0
16.0
5.5

5.5

5.5

6.0

5.5

7.5

9.0

10.0

10.0

10.0

10.0

10.0

11.0

25.0

19.0

12.0

※ Figures after taking into account the 1 April 2024 share split.
© 2024 EXEO Group, Inc. All Rights Reserved.

24

3. Other topics（5） Total Shareholder Return, ROE, EPS
Active shareholder returns through consecutive dividend increases and continuous
share buy-backs.
ROE declined in FY23 due to valuation losses, but has been on a steady growthtrajectory since FY24.
18.5

18.6

（billion yen）

EPS

15.6

ROE

¥250

11.0%

8.8%

12.1

9.4%

10.0%

¥200

9.0%

7.3%
¥150

6.5%

7.1%

8.0%
7.0%
6.0%

¥100
5.0%
¥50

¥109

¥125

¥102

¥95

¥107

4.0%
3.0%

¥0

FY20

FY21

FY22

FY23

FY24 Plan

2.0%

FY20

FY21

FY22

FY23

FY24
Plan

※ EPS figures take into account the 1 April 2024 share split.
© 2024 EXEO Group, Inc. All Rights Reserved.

25

“Bring the benefits of connectivity to all”