Results for the Six Months Ended
September 30, 2023
November 16, 2023

Contents
1. Overview of FY23 Interim Results

3. Shareholder Return(1) Financial Highlights

・・・

4(1) Dividends, Share Buybacks

・・・ 25(2) Results Highlights(Orders Received,Net Sales)・・・5(2) Total Shareholder Return, ROE, EPS

・・・ 26(3) Results Highlights(Operating Profit)・・・

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

7(5) Plan Summary・・・

8

2. Initiatives by Segment(1) Telecoms Carriers・・・ 10(2) Urban Infrastructure・・・ 12(3) System Solutions

・・・ 18(4) R&D Initiatives

・・・ 23©2023 EXEO Group, Inc. All Rights Reserved.

2

１． Overview of FY23 Interim Results©2023 EXEO Group, Inc. All Rights Reserved.

3

（１） Financial Highlights

Top line is at record high level （ Orders Received
reached record high).
Urban Infrastructure、System Solutions drive growthand profit increase.
Dividend is settled 60yen and Share buybacks alsocontinued.

©2023 EXEO Group, Inc. All Rights Reserved.

4

（２） Results Highlights（Orders Received, Net Sales）
Orders Received reached record high（ Net Sales is at record high level ).
■ Orders Received
Increased by 9％ YOY

304.2■ Net Sales（billion yen）

326.5

300.3

Increased by ±０％ YOY

260.9

FY21 Interim FY22 Interim FY23 Interim©2023 EXEO Group, Inc. All Rights Reserved.

265.1

265.1

FY21 Interim FY22 Interim FY23 Interim5（３） Results Highlights（Operating Profit）
Profit declined at Telecoms carrier segment and transient factors, but totally

increase due to growth in other segments.
■ Operating Profit（billion yen）

TelecomsCarriers-0.4

Urban
Infrastructure+0.6

SystemSolutions+1.7

transientfactor-1.0+0.７©2023 EXEO Group, Inc. All Rights Reserved.

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

Telecoms Carriers

Net sales

119.0

Urban Infrastructure

System Solutions

111.9

69.7

64.5

FY22 Interim

FY23 Interim

FY22 Interim

FY23 Interim

30

81.5

83.4

FY22 Interim

FY23 Interim

30

25

Special Factors

15

Segment profit

Allowance for doubtful accounts, etc. 0.5 billion 9.0%
yen
Cost associated with cancellation of orders 0.3 billion yen

5.9%

5.8%

25

Special Factors
Unprofitable projects
0.2 billion yen※105.1%※
6.5

6.97.0%5.0%20※151.7%

2.0%

3.0%

1052.3%202.5%

15100.6%

1.0%

5.705-1.0%-3.0%

FY22 Interim

FY23 Interim※ After adjustment of Special Factors©2023 EXEO Group, Inc. All Rights Reserved.

1.00

FY22 Interim

※

1.6
1.4

FY23 Interim

50.4

2.10

FY22 Interim

FY23 Interim※ After adjustment of Special Factors

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（５） Plan Summary
Our company plan increase revenues through expansion of urban infrastructureand system solutions in the future.
Aim to improve profitability and increase profit by further promoting structuralreforms, despite factors such as material price hike.

FY2022（billion yen）

ActualA

FY2023 PlanPlanB

YOY
BーAOrders received

625.6

620.0

-5.6

Net sales

627.6

630.0

＋2.4

（5.2%）
32.5（5.4%）
34.0(＋0.2P)＋1.5

Operating profit©2023 EXEO Group, Inc. All Rights Reserved.

8

２． Initiatives by Segment©2023 EXEO Group, Inc. All Rights Reserved.

9

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

Network engineering

Mobile engineering

NCCs

240.4

51.4

Progress rate
47％

119.0

111.926.6
13.08.5

24.7
10.5
8.1

70.8

68.4

FY22 Interim

FY23 Interim■ Trends in segment profit

25.9
20.8

・ Continue to aim to achieve full-year plan
despite special factors.
FY23 Plan
Special Factors

6.9

6.0%

・ Structural Reform 2.0 （next page below）

5.1%

14.3

・ Building a flexible system that can
respond to increases and decreases indemand.

6.5

・ Responding to investments to eliminate
network malfunction in urban areas.

0©2023 EXEO Group, Inc. All Rights Reserved.

Main Initiatives

5.8%

5.7
FY22 Interim

・ Sales decline due to investment restraint
by some carriers, but structural reforms
minimized the decline in profit margins.

142.3

Allowance for doubtful accounts, etc. 0.5 billion yen
Cost associated with cancellation of orders 0.3 billion yen

5.9%Interim Result and FY2023 Plan

FY23 Interim

FY23 Plan10（１） Telecoms Carriers～ Structural Reform 2.0 ～"Structural Reform 2.0" to increase productivity in the carrier business andsecure resources in growth areas.
Urban Infrastructure

Telecoms Carriers

Expansion of electric, power and smart energybusinesses.

Organizational integration of mobile
construction systems.

（Business Engineering Division ）Carrier A
Carrier B

Multi-carrier

・Standardization of construction process.
・Integration of construction organization
slimming down.

➡ Productivity
increase©2023 EXEO Group, Inc. All Rights Reserved.

Focused on
experienced/qualifiedpeople.

Expansion of railroads, public and other social
infrastructure facilities.
Expansion and synergy with infrastructure-relatedgroup companies.

Shifted 100 of personnel to expanding areas(reskilling)

Selection andtraining basedon aptitude.

System Solutions
Proposing business models using solutions.
Strengthening high-value-added areas.

AIExpansion and synergy with SI Group companies.
11（２） Urban Infrastructure■ Trends in net sales（billion yen）

186.3

・ Steady business growth in data centers, public
infrastructure construction, etc. Improved
profitability mainly in large-scale projects.

Progress rate
37％

64.5

69.7

FY22 Interim

FY23 Interim

・ Many large long-term orders were received in
the first half of the year, and the order backlog
expanded.
FY23 Plan■ Trends in segment profit
special factor
Occurrence of unprofitableprojects 0.2 billion yen

1.7%

5.7%
2.3%

2.0%

1.0

1.6
1.4

FY22 Interim

FY23 Interim0©2023 EXEO Group, Inc. All Rights Reserved.

Interim Result and FY2023 Plan

10.5

Main Initiatives
・ Implemented personnel transfers within thegroup, it strengthen the structure in response
to market expansion in the electrical sector ofthe data center.
・ In the civil engineering field, actively
challenging overseas propulsion works.

FY23 Plan12（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.)

83.8

75.8
Progress rate
36％

Progress rate
39％

29.8

FY22 Interim

32.8

24.2

FY23 Interim©2023 EXEO Group, Inc. All Rights Reserved.

FY23 Plan

FY22 Interim

Progress rate
31％

27.5

FY23 Interim

FY23 Plan

8.5

7.5

FY22 Interim

FY23 Interim

24.5

FY23 Plan13

（２） Urban Infrastructure （ Grid storage battery ）Stabilization of the power grid and effective use of renewable energy.

Actively contribute to securing variable adjustment capacity.

Source: NTT Anode Energy News Release

Linking data between different locations, building
the System that match the amount of surplus
power from the solar power plant with the amountof power charged by the grid storage batteries.
©2023 EXEO Group, Inc. All Rights Reserved.

14

（２） Urban Infrastructure （ Business Development for EV Expansion ）Providing advanced charging infrastructure to support the spread of EVs inJapan and abroad through business alliances with manufacturers.

Formed business alliance with TERA MOTORSEV Charger Installation in Singapore
Started promotion and expansion
collaboration of Gachaco Station

EV Charger Service for condominiums and businesses©2023 EXEO Group, Inc. All Rights Reserved.

1515

（２） Urban Infrastructure （Inovative Construction Method）
Mega solar construction using i-Construction, such as drones, 3D data, GPS,and laser beams, improves quality, speeds up construction, and reduces costs.
■ Solar power generation equipment

Acquisition of 3D data oflandscaped surfaces by drone

Millimeter-by-millimeter
construction according tothe 3D model

Optimal panel placement on 3D data
（ Acquired pile head coordinates forapproximately 27,000 piles ）©2023 EXEO Group, Inc. All Rights Reserved.

16

（２） Urban Infrastructure （ Overseas development of propulsion works ）Development of an ODA sewage project in Jakarta.
・Deployment of propulsion technology of Kido Construction
Co.,Ltd. and Iseki Poly-Tech Inc.overseas.
・Opened a civil engineering representative office for theEXEO Group.

Dparture shaft

Meeting scene
Status of promotion©2023 EXEO Group, Inc. All Rights Reserved.

17

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

203.3

・ Although the contribution of global operations
to profits has lagged, business growthcentered on the SI field has been strong, andprofit margins have steadily increased.

rate of progress
41％

81.5

Interim Result and FY2023 Plan

83.4

・ Aiming to achieve full-year plan throughfurther growth in SI business.
FY22 Interim

FY23 Interim■ Trends in segment profit

FY23 Plan

Main Initiatives
4.5%

2.5%
0.6%

9.0

・ Actively utilize human resources from otherbusinesses through reskilling, etc.
・ Developed an inter-group collaboration systemcentered on two core IT companies.

2.1

・ Focus on restructuring in global business.

0.4
0FY22 Interim©2023 EXEO Group, Inc. All Rights Reserved.

FY23 Interim

FY23 Plan18

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

・Overseas projects Unit

・Information system Unit

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

Progress rate
42％

54.7

118.4
Progress rate
35％

Progress rate
56％

66.5

16.2

50.3

20.7

9.1

23.5

5.8
FY22 Interim FY23 Interim©2023 EXEO Group, Inc. All Rights Reserved.

FY23 Plan

FY22 Interim FY23 InterimFY23 Plan

FY22 Interim FY23 Interim

FY23 Plan

19

（３） System Solutions （ Toward Business Expansion ）Evolving from a "SIer" to a "Solution Provider" while leveraging thecharacteristics of the group companies.
Sales Trends in the System Solutions Segment
203.3 （billion yen）
191.0

AI

what we aim to be

Solution Provider

154.6

Business Domain Expansion
adding of extra value

Beyond SIer
FY2021

FY2022

FY2023Strategy(1)Strategy(2)Business Model Reforms

Strengthen high-valueadded areas

Co-creation with groupcompanies✓ AI, Automation, Security✓ Refurbish ・GX✓ Economy of scale✓ Strategic M&A✓ DX Consulting Promotion✓ Managed Services Expansion

Strategy(3)Network SIer
／ software development SIer
2021

2022

©2023 EXEO Group, Inc. All Rights Reserved.

Now

2025

2030

2020

（３） System Solutions （ Improving efficiency in the global field ）New Global Headquarters "The Pulse" opens in Singapore, bringing together
group companies.
Office Scenery

Rest area

Appearance

Entrance©2023 EXEO Group, Inc. All Rights Reserved.

・ Nine Group companies occupy the building.
・ Develop business aggressively and efficiently
through ongoing recruitment and investment in thetechnology sector in Singapore.
21（３） System Solutions （ Wins first prize at Hackathon 2023 ）Embodying "AI utilization and automation" as an application on the "NowPlatform," a PaaS provided by ServiceNow, Inc.
2023 awarded the highest prize！（2021： 2nd place 、2022： 3rd place ）■ Award Winning Apps

Ex EffiAI (Efficiency Artificial Intelligence)
Applications that respond to the challenges of adeclining workforce in construction occupations withbusiness process automation and AI technology.

Automatic document creation screen

Emergency call and safety quality confirmation screen©2023 EXEO Group, Inc. All Rights Reserved.

22（４） R&D Initiatives
Promoting R&D for sustainable growth.
Target 1% of annual sales for DX/R&D investments.
【 Basic Policy 】“Developing technologies that solve the problems of our customers
and society through the power of connectivity.”➢ Anticipate changes and provide optimal construction processes
and working environment.
➢ Aiming to achieve Carbon-neutral and Well-being.
➢ Identifying potential challenges and providing new solutions.

＜ Focus Areas ＞

Our company

Automation
Labor saving

SafetyQuality

Carbon-neutral

New business
New SolutionsSociety©2023 EXEO Group, Inc. All Rights Reserved.

Form an R&D promotion
system and establish amechanism to consolidate
the Group's knowledge.

Customer23

３．Shareholder Return©2023 EXEO Group, Inc. All Rights Reserved.

24

（１） Dividends, Share Buybacks
Expected to increase dividend for 12 consecutive years based on DOE of 4.0%

(Interim: 60 yen, Annual: 120 yen).
Continued acquisition of treasury stock.
Plans to retire 3 million shares of treasury stock (2.7% of total shares outstanding).
Executing a 2-for-1 stock split of its common shares in April 2024.
■ Annual Dividends
¥120

¥140
¥120
¥100

¥70

¥80
¥60
¥40

¥20

¥22

¥24

FY11

FY12FY13

¥32

¥38

¥46

¥50

FY16

FY17¥80¥82

FY19FY20

¥96

¥102

¥20
¥0

©2023 EXEO Group, Inc. All Rights Reserved.

FY14

FY15

FY18

FY21

FY22

FY23 Plan25

（２） Total Shareholder Return, ROE, EPS
Enhanced shareholder returns through consecutive dividend increases andcontinuous share buybacks.
Continue to operate the business with an awareness of capital efficiency to achieve
the mid-term management plan.

■ Total Shareholder Return18.5■ ROE/EPS（billion yen）

EPS

15.6
13.98.8%

12.1

ROE

9.4%
7.3%

7.7%

¥205

¥224

FY22

FY23 Plan

5.9%

¥217

¥250

¥139

FY19FY20©2023 EXEO Group, Inc. All Rights Reserved.

FY21

FY22

FY23 Plan

FY19

FY20

FY2126

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.

©2023 EXEO Group, Inc. All Rights Reserved.

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