Annual Results for the Fiscal Year Ended
March 31, 2024 （FY 2023 ）May 10, 2024

Contents
１．Overview of FY2023 Results

４．Initiatives to Enhance corporate value（１）Initiatives to Enhance corporate value（１）Financial Highlights

・・・

4（２）Results Highlights(Orders Received,
Net Sales)

・・・

5（２）M&A・・・ 27（３）Results Highlights(Operating Profit)・・・

6（３）Cash Allocation Policy

・・・ 28（４）Results Highlights(Segment Information）

・・・

7（４）Disaster Relief Assistance・・・ 29（５）ESG・・・ 30２．Forecast for FY2024 Performance（Improving ROE）

・・・ 26

5．Shareholder Return（１）Plan Summary・・・9（２）Plan Summary（Segment Information）

・・・ 10（１）Dividends, Share Buybacks

・・・ 32（２）Total Shareholder Return, ROE, EPS

・・・ 33

３．Initiatives by Segment（１）Telecoms Carriers・・・ 12（２）Urban Infrastructure・・・ 15（３）System Solutions

・・・ 19©2023 EXEO Group, Inc. All Rights Reserved.

2

１．Overview of FY2023 Results©2024 EXEO Group, Inc. All Rights Reserved.

3

（１）Financial Highlights

Orders received reached a record high, and Sales
also remain at record levels.

Overseas business stagnated ,but domestic businessremains steady.

Year-end dividend 60 yen , 3 billion planned forshare buyback.

©2024 EXEO Group, Inc. All Rights Reserved.

4

（２）Results Highlights（Orders Received, Net Sales）
Orders received reached a record high. Sales declined year-on-year, but
remained high.
■ Orders Received
625.6

620.0

■ Net Sales

656.5

627.6

FY23 Plan©2024 EXEO Group, Inc. All Rights Reserved.

630.0

614.0

Decreased by 2％ YOY

Increased by 5％ YOY

FY22（billion yen）

FY23

FY22

FY23 Plan

FY23
5

（３）Results Highlights（Operating Profit）
Despite lower profits in the global business, the domestic side of the business
was strong, with all segments achieving higher profits.
■ Operating Profit
Telecoms Carriers
＋0.5

Urban
Infrastructure＋0.9（ billion yen ）System Solutions＋1.4
Allowancetransitory factors
▲1.1

＋1.6

©2024 EXEO Group, Inc. All Rights Reserved.

6

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

Telecoms Carriers
271.1

Urban Infrastructure

253.4

Net sales

165.3

FY22

FY23

Special factors
Allowance for doubtful accounts 0.7B yen
Cost of cancelled orders 0.3B yen

Segment profit

6.4%

※

7.0%
6.6%

17.3

System Solutions

※

17.8

16.8

FY22

9.0%

177.2

FY23

191.0

183.3

FY22

FY23

Special factors
Unprofitable projects 0.1B yen

7.0%

5.0%

3.0%

6.2%

10.2

1.0%

※
6.3%
※
※

6.2%
11.1

3.4%

2.6%

11.0

4.8

6.2

FY23

FY22

FY23

-1.0%

0

-3.0%

FY22
©2024 EXEO Group, Inc. All Rights Reserved.

FY23※Adjusted for special factors

FY22※Adjusted for special factors

7

２．Forecast for FY2024 performance©2024 EXEO Group, Inc. All Rights Reserved.

8

（１）Plan Summary
As regards sales, the aim is to achieve the medium-term management plan ahead ofschedule. Planned increase in profits due to continued strong domestic business andimproved profitability of global business.

FY2023（billion yen）

ActualA

FY2024
Plan
B

YOY
BーA

Orders received

656.5

640.0

▲16.5

Net sales

614.0

630.0

＋16.0

（5.6%）
34.1（5.7%）
36.0(+0.1P)＋1.9

Operating profit©2024 EXEO Group, Inc. All Rights Reserved.

9

（２）Plan Summary（Segment Information）（billion yen）

Telecoms Carriers
253.4

Urban Infrastructure

236.0

Net sales

177.2

FY23

FY24 Plan

10.0%

FY23

System Solutions

200.0

183.3

194.0

FY24 Plan

FY23

FY24 Plan

9.0%

Segment profit

6.6%

6.7%

8.0%
7.0%

16.8

15.7

6.0%
5.0%

6.2%

4.0%

5.2%
3.4%

3.0%

2.0%
1.0%

0

5.2%

11.0

10.3

FY23

FY24 Plan

6.2

10.0

0.0%

FY23
©2024 EXEO Group, Inc. All Rights Reserved.

FY24 Plan

FY23

FY24 Plan

10

3．Initiatives by Segment©2024 EXEO Group, Inc. All Rights Reserved.

11

（１）Telecoms Carriers■ Trends in net sales
Access engineering
Mobile engineering

271.1
62.3

Network engineering
NCCs

253.4

236.0

54.0

38.3
28.9
22.1

34.0
21.3

29.1
20.2

153.4

150.0

FY23

FY24 Plan

6.4%

6.6%

6.7%

17.3

16.8

・ Maintain/improve profitability as a corebusiness.

Main Initiatives
・ Continued productivity gains through
9.0%

7.0%

15.7

FY2024 Plan
・Capital investment by telecoms carriers
stagnates.

146.7

FY22

■ Trends in segment profit（billion yen）

5.0%

DX utilization.
（ Automation, Offshore, etc. ）・ Ongoing area-specific business
optimization.

3.0%

1.0%

-1.0%

0

・ Next generation infrastructure "IOWN"
and telecommunications NW renewal.
（ Focus on wireless fixed-line telephony,metal removal, etc.)

-3.0%

FY22
©2024 EXEO Group, Inc. All Rights Reserved.

FY23

FY24 Plan

12

（１）Telecoms Carriers (Restructuring of area businesses)
Subsidiaries were reorganised on 1 April to optimise the telecom carrierbusiness formation in the metropolitan area.
Hokkaido ,Tohoku Region
Integrated in August 2021.

Shikoku Region
Integrated in October 2022.

（Access engineering）

Suncrex Co.,Ltd.
（Access engineering）

Exeo Mobile Co.,Ltd.

MergerKansai, Chugoku Region
Integrated in July 2022.

Shineitsushin Co.,Ltd.
EXEO Engineering ,Inc
（Access・mobile engineering）（mobile engineering）（ Purpose ）Tokai, Kyushu Region
Restructuring planned
for FY2024.

©2024 EXEO Group, Inc. All Rights Reserved.

・ Improved operational efficiency through centralisation ofaccess and mobile operations.
・ Minimisation of management costs through optimised
allocation of assets and locations.
・ Strengthening governance at the area level.
・ Expansion of business areas through cooperation withGroup companies.
13

（１）Telecoms Carriers (centralisation of offices)
New Technology Centre (Dazaifu, Fukuoka) established to improve operational
efficiency in the Kyushu area.

・ In order to create new value, five
offices, including those of groupcompanies, which were dispersed
throughout Fukuoka City, were
integrated.
・ Rooftop solar power, storage
batteries, insulated glass and stateof-the-art air-conditioning systems
have been installed to create an ecofriendly and healthy working
environment.

©2024 EXEO Group, Inc. All Rights Reserved.

14

（２）Urban Infrastructure■ Trends in net sales

FY2024 Plan(billion yen)

200.0
165.3

・DC business remains strong. Expand
resources and maximise orders andcompletions.

177.2

・Profits for the current year will decrease
due to the deteriorating profitability oflarge projects awarded in the past andincreased recruitment and training costs.
FY22

FY23

FY24 Plan■ Trends in segment profit
6.2%

9.0%

6.2%

5.2%

7.0%

5.0%

10.2

11.0

10.3

3.0%

1.0%

-1.0%

0

-3.0%

FY22
©2024 EXEO Group, Inc. All Rights Reserved.

FY23

FY24 Plan

Main Initiatives
・Accelerate the shift of resources to DC
and electrical equipment projects.
・Train offshore wind turbine engineers andpromote partnerships with universities
and other organizations to facilitate local
development.
・Patent applied for energy-related power
controller. （ R&D promotion ）15

（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.)

73.2

85.5

86.0

76.2

75.9
66.2

FY22

FY23

©2024 EXEO Group, Inc. All Rights Reserved.

FY24 Plan

FY22

FY23

FY24 Plan

21.5

21.2

24.3

FY22

FY23

FY24 Plan

16

（２）Urban Infrastructure（Data Center）
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）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

（３）System Solutions■ Trends in net sales
191.0

183.3

（ billion yen ）FY2024 Plan

194.0

・ SI business, including software development,
steady.
・ The service business grew steadily andcontributed to profits.

FY22

FY23

FY24 Plan

・ Aiming for a significant increase in profits alongwith a recovery in global business.
9.0%■ Trends in segment profit

Main Initiatives
5.2%

3.4%

10.0

2.6%

4.8

4.0%

・ Increased relationship orders, including afterGIGA.

6.2

0

-1.0%

FY22
©2024 EXEO Group, Inc. All Rights Reserved.

FY23

・ Strengthening sales and marketing across theGroup's businesses to increase prime
contracting orders with total solutions.

FY24 Plan

・ Global operations aim to generate stable profits
through the integration of new businesses.
19

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

・Information system Unit

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

120.7

118.4

・Overseas projects Unit

119.1
56.2

19.0

21.0

FY23

FY24 Plan

44.3

52.3

13.2

FY22

FY23

©2024 EXEO Group, Inc. All Rights Reserved.

FY24 Plan

FY22

FY22

FY23

FY24 Plan

20

（３）System Solutions（ Total Solution Initiatives ）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 Group
21

21

（３）System Solutions（ Total Solution Initiatives ）Expand knowledge of system solutions to other segments to increase
company-wide profits.

Technologies tobe deployed
Consultancy
AI and apps

System solutions
Private companies,
municipalities, etc.

Customer-specificprocess DX, etc.

Urban Infrastructure
Railways,general contractors, etc.

Telecoms Carriers
NTT Group, etc.

DX support for infrastructure, engineering industry, etc.

Cloud
Platform

Building cloud infrastructures
for local government,
education, etc.

Provides cloud-based solutions

B2B2X model,
Adapting to the service model

IT infrastructure
and maintenance
operations

IT environment development,
including security andcommunication

Smart building/hotel/office projects

Maintaining and strengthening
the telecommunications
infrastructurePartner ecosystem

Group company
cooperation

Training of highly
skilled techniciansStrengthening
the business base©2024 EXEO Group, Inc. All Rights Reserved.

22

22

（３）System Solutions（NUTRIMATE）
Nutrimate, a nutritional food service management system with the No.1* domestic
market share in university hospitals. New version (ver. 11) equipped with AI
automatic menu planning function (patent pending) * According to Daiwa Densetsu Kogyo research.

©2024 EXEO Group, Inc. All Rights Reserved.

23

23

（３）System Solutions（Overseas project）
Strengthen management and governance, promote structural reforms for sustainable growth and steady
improvement in income and expenditure.

IT Managed Service

ICT infrastructure

Supply chain technology• HW Subscription Services• NW monitoring andsecurity services• Provision and construction of
IoT/SI/NI equipment• IBS infrastructure sharing
services• Offshore development• Digital trade platform• Freight tracking and fleet
management services• Digital Twin Warehousing• Electrical and sanitary engineering• Air conditioning and ventilationengineerin• Communications and signal
engineering

Review businessportfolio and improveincome and expenditure

Steady growth. Further
growth by capturing strong
engineering demand.

Improved income andexpenditure by recovering fromthe deteriorating businessenvironment.

Steady growth. Further
growth with footprint
expansion.

M&E Engineering

Expand intra-group synergies with domestic operations to achieve stable business growth©2024 EXEO Group, Inc. All Rights Reserved.

24

24

4． Initiatives to Enhance corporate value©2024 EXEO Group, Inc. All Rights Reserved.

25

（１）Initiatives to Enhance corporate value（Improving ROE）
Pursue growth to achieve ROE of 9.0% or higher as set out in the MediumTerm Management Plan. Continue growth exceeding capital costs to increase
corporate value.
■ Aiming to improve ROE

・ Shift of personnel to growth areas such as DC.
・ Integration of mobile business organizations toincrease construction capacity.
・ Productivity improvement through DX
utilization, offshore, etc.
・ Expansion of high value-added services.

Increase in orders and sales
Higher gross margin【ROE】

Sale of unwanted assets

ProfitCapital

M&A
Taking advantage of interestbearing debt

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

Initiatives in FY23

ProfitReducing Selling and
Administrative Expenses

・ Reorganization of Group companies.
・ Cost savings through DX. （Paper reduction）
・ Sale of Cross-Shareholdings.
・ Sale of unused real estate, Developing aproperty strategy.
・ Becoming a subsidiary of Kitanihon-Tsushin Co.,Ltd.
・ Creating business synergies that also utilize
capital alliances.

・ Cash generated in FY23.
・ Maintain A+ corporate bond rating.

Consecutive dividend
increases

・ Dividend increase implemented as announced.
・ Increase of the dividend threshold to DOE4.0%.

Continuous repurchase oftreasury stock・ Continued share buyback.
・ Investor-focused management, including stock
splits.

26

（２）M&A
Aggressively continue M&A to increase scale and further improve profitability.

■ Net sales of acquired subsidiaries※Aggregate of subsidiaries that have joined the Group since fiscal 2018.
However, three companies in western Japan Company Group are excluded.

100 (billion yen)

■ M&A policy
・ Strategic mergers and acquisitions to expand the business portfolio.
・ Selection of investment destinations with an awareness ofinvestment effectiveness and profitability.
・ Restructuring of the asset portfolio through the sale of CrossShareholdings.

Increase market sharethrough expansion ofbusiness size and domain

0

FY19

FY20

FY21

FY22

FY23

FY24 Plan■ Major Investments in FY2023
Companies
Kitanihon-Tsushin Co., Ltd.
Fixpoint, Inc. 【Capital andBusiness Alliance】
X1Studio, Inc. 【Capital andBusiness Alliance】©2024 EXEO Group, Inc. All Rights Reserved.

RegionUrban
Infrastructure
System Solutions
Urban
Infrastructure

Reinforcement of highvalue-added areas
through new technologies
and expertise・Strengthening our ability to handle large
projects.
・ Acquisition of construction areas.

・Resolving of lost opportunities andhandling of new projects.
・Acquisition of human resources anddevelopment sites.
・Setting up a new business.
・Value-added acquisitions such as
patents and construction methods.
・Development of new products andsolutions.
・Acquisition of new technologies such asAI.

27

（３）Cash Allocation Policy
Appropriately allocate the cash generated to investment in growth andshareholder returns, with the aim of increasing corporate value.
PolicyPolicy・ Cash flow generation throughsteady growth
350.0
・ Sale of Cross-Shareholdings andunwanted real estate.
・ Use of interest-bearing debt while 300.0
maintaining financial soundness【 Actual results 】
EBITDA・ 14 billion Cross-Shareholdings sold.
(3-year cumulative total)
・ Start considering medium- and longterm property strategies.

interest-bearing debt
・ 12bn reduction in favorable childliabilities (FY23)©2024 EXEO Group, Inc. All Rights Reserved.

Cash Allocation

InterestBearing Debt
45.0～

250.0

Sale of Assets

Investment

Growth Investment

120.0～

・ 75% progress on medium-term targets

23.3

16.4
Shareholder

100.0

EBITDA

Return

225.0

100.0

144.1

90.1

51.2

50.0

(3-year cumulative total)・ Capital investment ：50bn M&A：35bn
・ Human Resource Development ：Average of about 1 billion per year
(training, etc.)
・R&D/DX： At least 1% of sales invested.

Shareholder return

Various Tax
Payments
and Others

42.5

5years Total

5years Total

FY23 Total

Plan

Plan

0.0

FY23 Total

・ Continued investment in building a
growth platform and through M&A.
・ Active allocation of cash to humancapital/R&D.
・ Continuous dividend increases andshare buybacks.

【 Actual results 】

Growth

200.0

・ 64% progress on medium-term targets.
(3-year cumulative total)
・ Aiming for profit increase and growth 150.0
from FY24 onwards.

Sales of asset

Cash Generation

・DOE standard increased to 4.0%(FY23).
・ Share buybacks continue with the aimof improving capital efficiency.

28

（４）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.

29

（５）ESGSocial 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.

30

5． Shareholder Return©2024 EXEO Group, Inc. All Rights Reserved.

31

（１） Dividends, Share Buybacks
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

Dividends has increased for 19 consecutive years from
FY2005 to FY2023

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

48.0

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.

32

（２） 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.

■ Total Shareholder Return
18.5

18.6

■ ROE/EPS（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.

33

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 for
consultation on our company website.

©2024 EXEO Group, Inc. All Rights Reserved.

34

“Bring the benefits of connectivity to all”