Results for the Six Months Ended
September 30, 2019
November 2019

Building a better,brighter future together
Total ICT Solutions:Contributing to the Realization of a Brighter
Future by Bringing People Together andForming Connections with Society

URL: http://www.exeo.co.jp/overseas/index.html

Contents
4．Intitatives for ESG and SDGs

1. Overview of FY19 Interim Results(1) Performance Figures

・・・

2(1) ESG Initiatives(2) Orders Received

・・・3(2) SDGs Initiatives(3) Net Sales

・・・

4(4) Operating Income(5) Synergy with three companies inwestern Japan(6) Cash Flow・・・

5

5. Raising Shareholders’ Value

・・・

7(1) Shareholder Return Policy

・・・ 21・・・

8(2) Plan for shareholder returns for FY19, etc.

・・・ 22

2．Expectations for the Rest of FY19

6. Topics(1) Performance Figures

・・・(2) NTT Group (Access/Network)・・・ 10(3) NTT Group (Mobile)・・・ 11(4) NCCs

・・・ 12(5) Urban Infrastructure・・・ 14(6) System-Solutions

・・・ 159(1) KDT Co., Ltd. and SUN PLANNING・・・ 23SYSTEMS Co., Ltd made a Group company(2) eiwa-builtech and Winner Engineering
Pte.Ltd. made a Group company

3．Our M&A Strategy(1) Development Direction by Business・・・ 19・・・ 20・・・ 18Segment－1－

・・・ 24

1. Overview of FY19 Interim Results(1) Performance Figures◆ In addition to the organic growth of performance, the integration of the three companies inwestern Japan increased sales substantially.
◆Although SG&A expenses increased due to Group company growth, our profit increased significantly
thanks to the contributions made by the three companies in western Japan.

■ Overview of FY19 interim results (consolidated)
FY 2018
Interim

FY2019InterimFull year
Actual

YOY

A

B

C

C/A

Orders received

174.7

424.3

285.1

163%

Net sales

132.8

423.7

212.3

160%

13.3%

13.8%

13.3%

Gross profit
SG&A expenses
Operating income
Ordinary income
Net income attributableto owners of parent

17.7
6.9%

9.1
6.4%

8.5
6.7%

8.9
4.4%

5.8

58.3
6.3%

26.6
7.5%

31.7
7.9%

33.4
9.5%

40.2

28.1

159%

8.2%

17.4

190%

5.1%

10.7

126%

5.0%

10.6

119%

3.0%

6.2

106%

Notes: All amounts less than ¥100m are disregarded. Figures in parentheses are ratio to net sales.

－2－

(¥bn)

1. Overview of FY19 Interim Results(2) Orders Received◆ Orders increased significantly thanks to strong performance in each segment anda large order in urban infrastructure. The three companies in western Japan also
received orders steadily.

▲ Accessー Network○ Mobile▲ KDDI○ SB○ Rakuten○ Telecommunications
facilities○ Electricity supply○ Urban Civil
engineering▲ Environmental
engineering

SystemUrban
Solutions
Infrastructure
+6.2
+14.1
NCCs
NTT Group
+0.7
+2.6
○ SI
○ NI
○ Global

174.7

NipponDentsu+20.5
C-Cube+33.8

285.1
Three companies
in western Japan（＋86.8）

Existing Exeo G（＋23.6）

(¥bn)

Seibu
Electric
Industry+32.5（198.3） ← Existing Exeo G
Actual＋110.4

FY18 Interim

FY19 Interim
Note: All amounts less than ¥100m are disregarded.

－3－1. Overview of FY19 Interim Results(3) Net Sales◆ Although construction periods were extended in some segments, sales performed
well against the background of strong orders.
(¥bn)○ Telecommunications
facilities○ Electricity supply○ Urban Civil
engineering▲ Environmental
engineering▲ Accessー Network▲ Mobile▲ KDDI▲ SB○ Rakuten

○ SI
○ NI
○ Global

SystemUrban Solutions
Infrastructure +8.1
NTT Group
+7.2
NCCs
-0.6
-1.2

132.8

Existing Exeo G（＋8.1）＋79.5

FY18 Interim

NipponDentsu+17.2

SeibuElectric
Industry
+23.2

212.3

C-Cube+31.0（140.9）← Existing Exeo G
ActualThree companies
in western Japan（＋71.4）

FY19 Interim
Note: All amounts less than ¥100m are disregarded.

－4－1. Overview of FY19 Interim Results(4) Operating Income◆ Although SG&A expenses increased due to newly consolidated companies and M&A,
operating income increased significantly thanks to the contributions madeby the three companies in western Japan.
(¥bn)
Integration
synergy+0.1
Increase in SG&A
C-CubeSales mix
expenses due to
new subsidiaries
+1.8
+1.2
Up due toincrease in sales
+1.1

8.5

-0.8

Personnel
expenses,etc.
-0.8Overseassubsidiary-0.6

Nippon Amortization ofDentsu goodwill,etc.
-0.8
+0.7

Seibu
Electric
Industry+0.3

Three companies
in western Japan（＋2.8）

Existing Exeo G（＋0.2）

M&A cost（-0.8）

10.7（8.7）← Existing Exeo G
Actual＋2.2

FY18 Interim

FY19 Interim
Note: All amounts less than ¥100m are disregarded.

－5－1. Overview of FY19 Interim Results
Reference: Trends in Group company profitability◆ The results of the group companies were favorable, and the ratio ofconsolidated to non-consolidated profits remained high.
■ Trends in operating profits over the past five years (consolidated/non-consolidated)(Ratio of consolidated to
non-consolidated profits)

（2.1）

（2.1）

（1.9）

（1.8）

(¥bn)

（2.1）
10.7

8.9

Group companies
グループ会社
エクシオ単体Exeo alone

8.5

5.6
5.9

4.2

3.6

4.7

4.9

5.1

FY17 Interim

FY18 Interim

FY19 Interim

4.8

2.5

3.1

2.3

2.8

FY15 Interim

FY16 Interim

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.

－6－1. Overview of FY19 Interim Results(5) Synergy with three companies in western Japan◆ From the cooperation with the three integrated companies in western Japan, synergy

from the integration is created throughout the EXEO Group.
■ Sales collaboration and construction collaboration commenced in each business segment■ Work efficiency improvement and cost reduction by utilizing funds in the Groupand joint purchases■ Integration of in-house systems and workflows(shared-use systems for access are under development)

500 million yen/annual target

Effect of around 200 million yen on
a consolidated basis

As of FY 19 Interim

FY19
－7－

1. Overview of FY19 Interim Results(6) Cash Flow
◆ Cash flow is stable and cash on hand is ample.
(¥bn)■ Cash flow (consolidated)
FY16

FY17

FY18
Interim

FY19
Full year

InterimCash at beginning of FY

16.0

15.2

30.3

30.3

41.4

Operating activities

15.5

24.8

15.6

12.7

11.4

Investing activities

-6.0

-4.5

-9.5

-17.6

-5.2

Financial activities

-10.2

-5.1

-5.3

-4.9

-5.2

Increase/decrease of cash
due to share exchange

Cash at end of period

21.0
15.2

30.3

31.1

41.4

42.4

Note: All amounts less than ¥100m are disregarded.

－8－

2．Expectations for the Rest of FY19(1) Performance Figures◆ The highest-ever topline is expected, thanks to organic growth and year-round contributions by
the three companies in western Japan.
◆ An update of the highest profit is expected due to the effect of newly consolidated subsidiaries
and the creation of integration synergy.

■ Overview of FY19 interim results (consolidated)
FY 2018
Interim(¥bn)
FY2019Full year

InterimFull year
ActualYOY

Progress
rate
C/D

Plan

YOY

D

D/B

A

B

C

C/A

Orders received

174.7

424.3

285.1

163%

58%

495.0

117%

Net sales

132.8

423.7

212.3

160%

43%

495.0

117%

13.3%

13.8%

13.3%

Gross profit
SG&A expenses
Operating income
Ordinary income
Net income attributableto owners of parent

17.7
6.9%

9.1
6.4%

8.5
6.7%

8.9
4.4%

5.8

58.3
6.3%

26.6
7.5%

31.7
7.9%

33.4
9.5%

40.2

28.1

13.4%

159%

42%

8.2%

17.4

190%

51%

126%

34%

129%

32.0

101%

6.6%

119%

32%

3.0%

6.2

34.3
6.5%

5.0%

10.6

114%

6.9%

5.1%

10.7

66.3

32.8

98%

4.4%

106%

29%

Notes: All amounts less than ¥100m are disregarded. Figures in parentheses are ratio to net sales.

－9－

21.8

54%

2．Expectations for the Rest of FY19(2) NTT Group (Access/Network)◆ Net sales from work to open an optical network are steady, and maintenance and construction fordisaster countermeasures have gradually been increasing in recent years.
◆ In line with the increase in mobile traffic, NTT Building’s power-supply constructions are steady.

■ NTT Group’s disaster countermeasures■ Net sales of NTT Group(fixed-line network, consolidated)

1. Improvement of reliability ofcommunication networks（including multiple transmission routes）(¥bn)
Three companies in western Japan (Results of the former Company

communication infrastructure（concentration ofcommunication facilities, etc.）

for the second half period)
Existing Exeo G (Results of the former Company for the second half

・ Proactive disaster response

period)3. Early
restoration

Three companies in western Japan (Actual results for 2Q)

2. Securing of important
communication(Full-year plan)
Existing Exeo G (Actual results for 2Q)

151.8
111.8

66.9

・ Further strengthening of

117.7

72.1

115.8

66.5

・ Appropriate transmission of
information

168.5(Source: Created by Kyowa Exeo based on NTT presentation material)■ Trend of number of subscribers to NTT Group's
fixed-line broadband
2,168
2,108

32.5

1,926

67.6
26.7

2,005

1,131

2,053
942

10,000s of
subscribers

839

779

1,457

44.9
FY15

45.6
FY16

49.3
FY17

51.7
FY18

48.2
FY19
Interim

－10－

469

FY15

874

FY16

1,111

1,269

1,389

FY17

FY18

FY19 Plan

FLET'S HIKARICOLLABO HIKARI

2．Expectations for the Rest of FY19(3) NTT Group (Mobile)◆ Expect an increase in the construction of 4G-enabled base stations for the new frequency (3.4GHz).
◆ Start receiving orders for 5G. Prepare our construction system in case the construction of 5G basestations proceeds more rapidly than initially expected.
■ Image of NTT DOCOMO Main Processes (our company's assumption)■ Net sales of NTT Group(mobile network, consolidated)(¥bn)
Three companies in western Japan (Results of the former Company
for the second half period)
Existing Exeo G (Results of the former Company for the second half
period)Three companies in western Japan (Actual results for 2Q)
Existing Exeo G (Actual results for 2Q)

48.7

50.6

29.0

29.5

51.5

(Full-year plan)
52.5
51.7

2.8
30.0

■ Construction of 5G networks for NTT DOCOMO
3.7GHz

FY15

21.1
FY16

21.5
FY17

28GHz

10,0002.0
19.7

4.5GHz

28.5

20.4
FY18

17.9

40 sites

FY19

End of September

Interim－11－

Expansion to
47 prefectures
End of June

Advancing the schedule
faster than the initial planEnd of June

End of FY 2024

END OF SEPTEMBER
END2019
OF JUNE
END
2020OF JUNE
2021
END OF FY24
2019
2020
2021
(Source: Created by us based on NTT DoCoMo presentation material.)

2．Expectations for the Rest of FY19(4) NCCs◆ Orders from Softbank perform well, and higher sales are expected in total compared to the previous year.
◆ Rakuten's wireless base station construction has started in earnest, and we are working withthree companies in western Japan to respond.

■ Number of base stations for new frequency bands for 4G(1.7 GHz and 3.4 GHz) planned to be opened■ Net sales of NCCs (consolidated)(¥bn)

Three companies in western Japan (Results of the former Company for thesecond half period)
Existing Exeo G (Results of the former Company for the second half period)

Three companies in western Japan (Actual results for 2Q)

Existing Exeo G (Actual results for 2Q)(Full-year plan)

38.0
28.1
23.2

39.5

19.1

14.7

10.2

8.6

11.4

12.3

FY15

FY16

FY17

FY18

SoftBank
23,167(3.4G)

Service to be launched at the end of
March 2020
Number of stations planned to be openedby the end of FY22

Rakuten27,397(1.7G)

Test service to be launched in October
2019
Number of stations planned to be openedby the end of FY25

■ Results of 5G frequency allotment

6.6

13.0

Service to be launched at the end of
March 2019
Number of stations planned to be openedby the end of FY25

(Source: Prepared by the Company based on the materials of the Telecommunication
Bureau, Ministry of Internal Affairs and Communications)

23.3
16.7

KDDI
28,660(1.7G)

5.4（19.9）

11.0

FY19Interim－12－

2．Expectations for the Rest of FY19
Reference: Investment Trends of Major Telecom Carriers(Source: Figures released by the telecommunications carriers)■ NTT East/West
583.4■ NTT DoCoMo

Optical fiber

549.6

547.9

541.0

595.2

(¥bn)

LTE-related

597.1

577.9

593.7

FY16

FY17

FY18

FY19
Plan
PLAN

380.3

380.0

FY18

FY19
Plan
PLAN

520.0

570.0

365.4
177.0

156.0

154.0

161.0

150.0

FY15

FY16

FY17

FY18

FY19
PLAN
Plan

FY15

■ SoftBank■ KDDI
Mobile

531.4

519.3

560.8

601.7

610.0
412.8
320.5

338.0

325.0

FY15

FY16

FY17

FY18

FY15

FY19
Plan
PLAN

－13－

FY16

350.1

FY17

2．Expectations for the Rest of FY19(5) Urban Infrastructure◆ Construction for 700MHzBand TV reception measures is declining, but sales are expected
to remain strong.
◆ We have received large orders for the construction of mega solar, and the earth shuttle
method for submarine cables, and we aim to win large orders in the future.

■ Urban Infrastructure net sales (consolidated)■ 700 MHz Band TV reception measures(¥bn)
Three companies in western Japan (Results of the former Company forthe second half period)
Existing Exeo G (Results of the former Company for the second half

Replacement
Installation

period)of boosterOrof filter

Three companies in western Japan (Actual results for 2Q)
Construction areas of theCompany

Existing Exeo G (Actual results for 2Q)(Full-year plan)

Install a filter to cancel the radio

Replace a booster with one that amplifies only thewaves from the 700MHz bandbands up to 710MHz (where the situation cannot

128.0

mobile phone base stations

be addressed with the installation of a filter)(Source: Created by us based on the HP of Association of 700MHz Frequency Promotion)■ Undertake the earth shuttle method

108.6

Note: Appropriate method for the penetration of the sea, rivers, and mountainareas, etc.

17.1
65.7

67.3

74.5
Substation

51.0

Kanto andKoshinetsu

Okinawa Construction for installation ofsubmarine cable unloading duct line, etc.
Wind farm on the sea

62.9

Filter plant

48.6

43.4

17.1

23.9

23.5

28.6

35.8

FY15

FY16

FY17

FY18

FY19

13.9

Cable duct line
海上風力発電施設
Fisheries facilities

Communicationbase station

Interim－14－

Sea water intake pipe

Water line to an
isolated island

Coral reef

Cable unloading duct line

2．Expectations for the Rest of FY19(6) System-Solutions◆ Continue to focus on the expansion of new solutions such as the cloud.
◆ We will strengthen our global operations through M&A and promote business expansion
in the APAC region.
■ Solution Map (added value expansion plan)■ System-Solutions net sales(consolidated)

Relationshipreinforcement

Construction work
management(¥bn)

Proprietary package productProductivity improvement

Enhancement of B2B sales ability

Site assistanceConstruction work management, disaster prevention
Construction companies,
local governments

CustomerThree companies in western Japan (Results of the former

Manager

Map information

Sales representative

Company for the second half period)

Business visualization

IT operation optimization

Existing Exeo G (Results of the former Company for the second
half period)

AI / Analytics

IT
operation

Security
Helpdesk

In-memory dataprocessing

Service management platform

Three companies in western Japan (Actual results for 2Q)

Manager

AI data analysis

Stakeholders

WorkerDigitalization of work

Existing Exeo G (Actual results for 2Q)(Full-year plan) Workdetails
106.5

Communication
Sales ability enhancement
Sales
activity

Sales
management

Competitiveness enhancement
Paperwork
efficiency
improvement

Securing
safetyFosteringofengineers

Divisionspecific
work

73.4
37.8

39.7

42.5

Work

26.5

Sales

Flow

Construction
work

Design23.1

Digitalization of business process

Business process transformation solution

22.1

22.8

23.5

27.3

15.7

16.9

19.0

19.6

27.7

FY15

FY16

FY17

FY18

FY19
InterimBusiness
process
analysis

Business process management
Sales

Orders

Delivery

Maintenance

BPM platform
BPM platform solution/RPA solution－15－

Maintenance

API / Data integration
API Management
Domestic G
systemDivision-specificsystemOverseas G
systemData integration

2．Expectations for the Rest of FY19
Reference: Results of orders received for new solutions and activities going forward
8¥7.5bn¥3.7bn6
4

New energy field

2

・ Energy management service

0
FY19
Plan

・ Transportable lithium battery
・ Smart meter

FY19Interim14commence full scale
development globally

Global, other

12・ Global projects

8・ Global project

6

investment, etc.

¥15.0bn

FY19
Plan

Energy Viewer , Survival Power Supply,・ Beacon¥4.9bn（indoor positioning

EXBeacon:(Next-generation beacon
equipped with mesh network

4

infrastructure/sensor

2

network）⇒ Provision of indoor positioning

0・ Guide application

infrastructure and formation of(tourism/disaster)

sensor network

FY19
Interimfunction)

Cloud/security¥3.5bn¥1.0bnfield

4・ Thin client/virtual field
FY19
Plan

FY19
InterimGeo Solutions field

10

FY19
Plan
6
5
4
3
2
1
0

¥0bn

HEMS, etc.

16

in Singapore, and will¥3.0bnUtility cloud for new electric power companies ,Orders Received

EXEO GLOBAL was founded

6
5
4
3
2
1
0

FY19
Interim・ Security infrastructure
・ Educational apps

・Cloud integration engineering in partnership with Microsoft

Computerized parking spacecertification system－Enrichment of lineup of solutions in corporate communication and
IoT fields, Capital and business tie-up with Phone Appli Inc.

－16－

3
2

¥1.0bn¥0.2bn

1
0
FY19
Plan

FY19
Interim2．Expectations for the Rest of FY19
Reference: Global business initiatives
With EXEO GLOBAL as a starting point, expand business in the APAC region

Building business basesin Southeast Asia
Philippines , Thailand , Singapore

Philippines

・ Airport ICT・ Industrial complex ICT
・ Data center ICT
・ Expressway communication
・ Railway communication

On October 31, 2018, the company signed an agreement to acquire all shares of the LAE
Group, which engages in work for electrical and integrated facilities in Singapore.

Thailand

N

a

m

e

Location
Business
Activities
C a p i t a l
Number of
employees

Singapore

Leng Aik Engineering Pte.Ltd.
Singapore
Work for electrical and integrated facilities
1.5 million SGD
Approx. 260 people

In October 2019, the company signed an agreement to acquire all the shares ofWinner Engineering, which engages in air conditioner installation work in Singapore.

In January 2018, EXEO ASIA wasestablished in Thailand toengage in ICT solutions.

External view of training center near Manila
In collaboration with training facilities in Japan, the center fosters engineers

N a m eLocation
Business
Activities
C a p i t a l
Number of
employees

Winner Engineering pte.Ltd.
Singapore
Design and installation work for air conditioners, electricalwork
1.5 million SGD
Approx. 130 people

who will work globally. (In July 2018, Mr. Noda, Minister of MHLW at the time,
visited the above training center.)

In November 2018,
EXEO GLOBAL Pte.Ltd. was established in Singapore to operate and manage
overseas subsidiaries. A takeover bid is currently underway for all the shares of
DeClout, a global operator of a system solution business.

Training facility in Japan ... Chuo Training Center (Saitama Pref.)(In July 2019, Mr. Nemoto, Minister of MHLW, visited the training center.)

MG Exeo (Philippines) has been engaged in construction forcommunication common carriers for a long time.
・ It undertakes not only access & mobile construction work but also maintenance work for major
local telecommunications carriers.
・ It has advanced into the urban infrastructure business, such as railway communication androad-related construction work.

－17－

N a m eLocation
Business
Activities
C a p i t a l
Number of
employees

DeCLout Limited
Singapore
Sale and service of IT infrastructure and cloud service
114 million SGD
Approx. 630 people3. Our M&A Strategy(1) Development Direction by Business Segment
Engineering Solutions（Urban infrastructure）

Engineering Solutions（NTT Group, NCCs）
Implementation of system enforcement,
maintenance area expansion

Expanding areas of power/air conditioning and maintenance・M&A in the power/air conditioning field, where synergy can be generated
・M&A in the facility maintenance field
2019

・ Generation of synergy with each of the companies
merged and previously acquired
・ M&A aiming at enhancing implementation systemand expanding maintenanceeiwa-builtech
air conditioning
sanitation

2018
ＫＯＨＫＥＮ2018
C-Cube2018
Seibu
Electric
Industry

2010
Ikeno
TsukenAnticorrosion
coating

Currently: Exeo Tech
2011
Wako
Engineering
2011
Daiwa
Densetsu

Competitors(mainly undertaking
NTT's communication
facility construction)
2019

2011

2018

LAE
Electricity supply

KDT

Icom

2014

ＳＩ

AID

2015

ＳＩ

WHERE
ＮＩ

2019

SPS
ＳＩ

2019

2019

Expansion of SI, NI, and global fields

air conditioning
sanitation

ＮＩ・M&A in the IoT, AI, RPA, and BPM fields
・M&A in the fields of facility construction,
SI, and NI in the ASEAN region

Winner E DeClout

System Solutions
－18－

2018
NipponDentsu4. Intitatives for ESG and SDGs
(1) ESG Initiatives
Ｅ
Environment

・Reduction of CO2 emissions ⇒ 1% reduction of power/gasoline use compared to the previous year
・Use of green energy, forest conservation ⇒ Solar power business, Forest of Exeo, and so on
・Promotion of green procurement ⇒ 63% or more of ecological product purchases- Activities on Forest of Exeo Fifty years after Exeo’s foundation, we once again acknowledge the need for global warming
protection and community contribution, by currently concluding profit-sharing silviculture
agreements* with five regional forest management offices nationwide. Naming each one a"Forest of Exeo," we are promoting activities to protect national forests and develop afriendship between employees and their families.
Conservation activities of national forests on the premise of not cutting them down.

Our stocks have been selected for the MSCI Japan ESG SelectLeaders Index. (as of June 2019)*DS: diversity, WLB: work life balanceＳ
SocietyＧ
Governance・ Promotion of DS/WLB※ ⇒ More than 25% new female graduate employment, total reduction of working
hours, and so on
・ Securing safety and quality ⇒ Zero serious accidents per year, ensuring and disseminating the quality
philosophy
・ Contribution to society and community ⇒ Recovery measures in the case of natural disasters, andcommunity contribution
・ Strengthening corporate governance ⇒ Disclosure of the evaluation of the workability of board
meetings
・ Ensuring compliance ⇒ Committee, promotion of effectiveness of internal report system
・ Proper risk management ⇒ Specifying risks of processes, enhancement of BCP－19－

4. Intitatives for ESG and SDGs
(2) SDGs initiatives① Achievement of a safe and secure society② Achievement of an affluent society
through the solution businessthrough the infrastructure business
Achieve urban development that is safe and secure foreverybody, as well as contributing to building
infrastructure that is resilient to natural disasters③ Global environment conservation andachievement of a recycling-oriented society

Resolution of social issues and achievement of an affluent
society through IoT technology④ Achievement of favorable communication
with stakeholders

Promotion of recycling and effective utilization of
resources; achievement of a society for the preventionof global warming

To meet the expectations of stakeholders, favorable
communication will be strengthened to resolve issues－20－5. Raising Shareholders’ Value(1) Shareholder Return Policy◆ From the FY2018 dividend, DOE was raised to around 3.5% to strengthen shareholder returns◆ Plan to acquire own shares of 5 billion yen in 1H FY2019■ FY2019 planned annual dividend: 80 yen
FY16

FY17

FY18

FY19 Forecast

DOE 3％

DOE 3％

DOE 3.5%(integrated from 2H)

DOE 3.5％

Annual dividends
per share

¥46

¥50

¥70

¥80

Total annual dividends¥4.38 billion¥4.78 billion¥7.31 billion¥8.97billion

31.7％

26.4％

※32.9 ％

41.2％

Item

Payout ratio*Calculated by subtracting the extraordinary profit (negative goodwill) arising from the management integration.

■ Outline of repurchase of treasury stock in the first half of FY19(1) Purposes of the acquisition: Flexible implementation of capital policy and improvement of capital efficiency(2) Total acquisition: ¥5.0 billion(3) Total number of shares of treasury stock to be acquired: 1.93 million shares(4) Acquisition period: May 15, 2019 to September 30, 2019－21－

5. Raising Shareholders’ Value(2) Plan for shareholder returns for FY19, etc.
■ Dividend history (per share)■ Total shareholder return¥80(Total dividends + total acquisition of treasury stock)70¥13.8bn

Total dividends
Total acquisition of treasury stock46

50

Year-end
40

38

Interim
40
FY16

FY17

FY18

FY19
Plan

■ Acquisition of treasury stock
5.0

3.0

4.7

3.7

4.3

4.7

FY15

FY16

FY17

7.3

FY18

8.8

FY19
PPlan
LAN

■ EPS/ROE

Note)EPS and ROE are calculated by subtracting the special profit (negative goodwill)from the management integration.

EPS¥5.0bn

ROE
212

189
3.0

5.0

3.0

7.3
5.0

FY15

10.3

8.7

3.0

125

145

¥195

10.8%

8.9%

10.0%

8.2%
8.1%
FY15

FY16

FY17

FY18

FY15

FY19
Plan

－22－

FY16

FY17

FY18

FY19
Plan

6. Topix(1) KDT Co., Ltd. and SUN PLANNING SYSTEMS Co., Ltd
made a Group company◆ Grouped KDT Co., Ltd. for the expansion of business scale in Hokkaido◆ Grouped SUN PLANNING SYSTEMS Co., Ltd, which holds a market competitive IT tool

■ Profile of KDT Co., Ltd.

■ Profile of SUN PLANNING SYSTEMS Co., LtdName

KDT Co., Ltd.

Name

SUN PLANNING SYSTEMS Co., Ltd

Address

2-12 Minami Go-jyo Nishi 22chome, Sapporo Hokkaido

Address

12F Kayaba-cho Tower, 1-21-2,
Shinkawa, Chuo-ku, Tokyo

Name/title ofrepresentative

President and CEO
Toshiro Watanabe

Name/title ofrepresentative

President and CEO
Takeshi Shiraha

Business line

Telecommunication work

Business line

System integration

Paid-in capital¥24 million

Paid-in capital¥200 million

Established

April 23, 1964

Established

January 14, 1980

－23－

6. Topix(2) eiwa-builtech and Winner Engineering Pte.Ltd. made a Group company◆ eiwa-builtech was acquired by the Group with the aim of expanding the urban infrastructure businessin the area of Kyushu.
◆ Grouped Winner Engineering Co., Ltd., which engages in air conditioning construction in Singapore.

■ Profile of eiwa-builtech■ Profile of Winner Engineering Pte.Ltd.

Nameeiwa-builtech

Name

Winner Engineering Pte.Ltd.

Address

Kawamiya 915-1, Tagawa-shi,
Fukuoka Prefecture

Address

18 Woodland Industrial Park E1
Singapore 757738

Name/title ofrepresentative

President and CEO
Katsumi Nakamura

Name/title ofrepresentative

Managing Director
Mr. Loi Sing Lee

Business line

Air conditioners and sanitaryfacilities construction workbusiness

Business line

Design and installation work for air
conditioners, electrical work

Paid-in capital¥21 million

Paid-in capital

1.5 million SGD

Established

October 16, 1986

Established

July 20, 1989－24－

Disclaimer Regarding Forward-Looking Statements
Management of the Company has made estimates and assumptions
relating to financial forecasts based on information available as of thereporting date. Actual results could differ from those estimates.

3-29-20 Shibuya, Shibuya-ku,
Tokyo 150-0002 JAPANhttp://www.exeo.co.jp/overseas/index.html
TEL: (81)3-5778-1073

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

－25－