Results for the Six Months Ended
September 30, 2021
November 19, 2021

Contents
Our company name change…

3

1. Overview of FY21 Interim Results(1) Financial Highlights(2) Results Highlights(Orders Received,
Net Sales)(3) Results Highlights(Operating Profit)

4. Group Strategies
・・・

5(1) Reorganization of group companies

・・・

21

・・・

6

(2) Domestic M & A Results and Future Aims

・・・

22

・・・

7

(3) ESG Goals

・・・

23

(1) Dividends, Share Buybacks

・・・

25

(2) Total Shareholder Return, ROE, EPS

・・・

26

・・・

28

・・・

29

・・・

30

2. Forecast for FY2021 Performance(1) Plan Summary

5. Shareholder Return・・・

9

3. Segment Information(1) NTT Group・・・ 11

6. Topics(2) NCCs

・・・ 12(1) Workplace vaccination with COVID-19(3) Urban infrastructure・・・ 13(4) System solutions

・・・ 17©2021 EXEO Group, Inc. All Rights Reserved.

(2) Establishment of branch offices based on
the concept of smart offices(3) Introduction of electricity derived fromrenewable energy2Our company name change
Our company changed its name on October 1 this year.
We will pursue further growth under the new corporate name, which
represents our strong desire for every individual member of the Group to
apply their abilities and work together as one team to realize our future.

New business name: EXEO Group, Inc.
Date of change: October 1, 2021
A special site is available on our company website.
Please take a look at it.
https://www.exeo.co.jp/en/special/©2021 EXEO Group, Inc. All Rights Reserved.

31. Overview of FY21 Interim Results©2021 EXEO Group, Inc. All Rights Reserved.

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(1) Financial Highlights
Received orders, net sales and operating profit hit record highin second quarter.

Operating profit was up 52% from the previous year(controlling the increase in SG & A expenses)

Plan to cancel treasury stock (1 million shares implemented in November)and pay a commemorative dividend (2 yen at the end of the fiscal year).

©2021 EXEO Group, Inc. All Rights Reserved.

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(2) Results Highlights (Orders Received, Net Sales)
Record high in both orders and sales, with year-on-year growth in all segments■ Orders Received
6% more than in FY2020 Interim©2021 EXEO Group, Inc. All Rights Reserved.

■ Net Sales(billion yen)

16% more than in FY2020 Interim6(3) Results Highlights (Operating Profit)
In addition to the increase in profit due to the increase in net sales, the improvementin overseas business and other profits led to a substantial increase in profit.
■ Operating Profit

52% more than in FY2020 Interim

Productivity
enhancement due tothe improvement of
the efficiency of
installation work
+2.4

Improving
Overseas
Business
Profits+0.7©2021 EXEO Group, Inc. All Rights Reserved.

Increase in
SG&A expense
due to theconsolidation ofcompanies-0.5
Impact of
introducing
AccountingStandard for
Revenue
Recognition+1.2

Increasedue toincreased
sales
+2.0

(billion yen)

+5.8

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2. Forecast for FY2021 Performance©2021 EXEO Group, Inc. All Rights Reserved.

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(1) Plan Summary
Although the first-half results were favorable, the full-year forecast was unchanged at
this point in view of the impact of the global semiconductor shortage and the reaction to
the special demand in the second half of last year.

FY2020（billion yen）

ActualA

FY2021
Plan
B

YOY
BーA

Orders received

631.0

550.0

▲81.0

Net sales

573.3

560.0

▲13.3

（6.4%）
36.6(6.6%)
37.0(＋0.2P)＋0.4

Operating profit©2021 EXEO Group, Inc. All Rights Reserved.

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3. Segment Information©2021 EXEO Group, Inc. All Rights Reserved.

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(1) NTT GroupNet sales increased due to Project on Promoting Advanced Radio Environment
Improvements and progress of construction of NTT DOCOMO’s 5G base stations.
■ Trends in net sales■ Topics (NTT East, West and NTT DOCOMO)(billion yen)

Project on Promoting Advanced Radio
Environment Improvements
Construction of the project, which was awarded
in fiscal 2020, made steady progress this fiscal year,
contributing to increased sales in the access field.

NTT DOCOMO’s 's 5G base station plan
It is positively developing 5G by the new
frequency band. Construction is progressing
toward the achievement of 20,000 stations
by the end of the fiscal year.
574 cities
7,100
stations

March

2021.32021

Target achievement
10,000stations

June

2021.62021

20,000stations
March

2022.32022

Coverage area
ratio 70%
32,000stations

DuringMarch
2023

FY2023(Source: Created by the Company based on the presentation materials of telecom
carriers)©2021 EXEO Group, Inc. All Rights Reserved.

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(2) NCCs
Both orders and sales increased significantly from the previous year due toaggressive capital investment by telecommunications carriers.
■ Trends in net sales■ Topics(billion yen)

Construction of base stations bytelecommunications carriers
Softbank

It’s generally favorable. 5G population
coverage has progressed to around 80%.

KDDI

The station platforms of the Yamanote Lineand the Osaka Loop Line and the 5G area
between the stations were completed.

RakutenConstruction of an outdoor base station isdelayed due to a shortage ofsemiconductors.

(Source: Created by the Company based on the presentation materials of telecom carriers)

Each company has not changed its base station construction policy
and is steadily promoting construction to achieve the target.

Method for coping with rapid increase inconstruction quantity
In order to meet the needs of each company, we have improved
construction capabilities by shifting resources within the Group to
multi-skill systems.
©2021 EXEO Group, Inc. All Rights Reserved.

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(3) Urban infrastructure
Aggressively expand business, including new areas, as a growth segment.
■ Trends in net sales■ Topics(billion yen)

Renewable energy P.15
Started business tie-up with SWCC SHOWAHOLDINGS CO.,LTD. to enter the offshore wind
power generation business.
Woody Biomass in-house power generation P.16
We are constructing our own power generation
facility using woody biomass. Investment funds
will be raised through green bonds.

Local 5G Demonstration Experiment
Demonstration experiments will be conducted to
improve the efficiency and safety of maintenancework in expressway tunnels.
©2021 EXEO Group, Inc. All Rights Reserved.

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(3) Urban infrastructure
Aim to expand business by developing new fields in each business domain.
■ Trends in net sales

Planned Progress
Rate 41%(billion yen)

PlannedPlannedProgress
Progress
Rate
Rate56%56%
Planned Progress
Rate 30%

・Public infrastructure equipment

・Electrical/Environmental equipment

・Civil engineering equipment

Actively investing resources in the
future in response to growing
demand for public infrastructurerelated upgrades such as railways
and tunnels.

In addition to continuing demand fordata centers, plans to develop
renewable energy fields (offshore wind
power, woody biomass, etc.).

Actively respond to demand for
utility pole elimination, tunnel
construction, and renovation of
aging infrastructure.

©2021 EXEO Group, Inc. All Rights Reserved.

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(3) Urban infrastructure（Participation in the offshore wind business）
Regarding offshore wind power generation, our company plans to participate in projects in areas such as
electric power self-operated line and cable landing.
Business tie-up with SWCC SHOWA HOLDINGS CO.,LTD. to expand business in the renewable energy field.
Land substation

Operation monitoring
facility
Port facility

Offshore
substation

windmill and foundation

Power storage facility

Power system

Land cable

Cable landing

Array cable

Submarine cable

Expected business areas■Business tie-up with■Market size forecast

SWCC SHOWA HOLDINGS

To reach a cumulative market size of approximately ¥4 trillion by 2030

In September 2021, our company and SWCC
SHOWA HOLDINGS CO.,LTD. started a businessalliance for an electric power project related tooffshore wind power generation.

Fiscal year

(Source: Yano Research Institute Ltd.)

2020

2030

2040

2050

Annual introduction

～1GW

2～4GW

4～6GW

Number of sites per year

3～10

6～40

13～60

Estimate of construction
cost for as electric power
self-operated line

30billion yen ~ 50billion yen per case(Source: Trial calculation by the Company based on The Crown Estate 「 Guide to an offshore wind farm 」)©2021 EXEO Group, Inc. All Rights Reserved.

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(3) Urban infrastructure （Biomass power generation）
Two power plants are under construction to start in-house power sales usingwood biomass power generation. We plan to raise 10 billion yen through green bonds.

[Purpose of Business]●As part of the EXEO Group・Establishing a recycling-oriented society by utilizing local resources⇒Contributing to the achievement of SDGs

・Securing new revenue from power sales●To the local government of the construction site

△Biomass power plant in Tochigi Prefecture（Image）

・Power generation scale:7,000kw (Sales of electricity: 6,000kw)
・Fuel: Woody Biomass from Domestic Natural Trees
・Start of sales of electricity:In 2023

・Job creation and regional revitalization
・Creating precedents as a city promoting renewable energy
・Providing functions as a regional disaster prevention baseBiomass gasification power plant in Fukushima Prefecture（Image）▷

・Power generation scale:2,000kw (Sales of electricity:1,800kw)
・Fuel: Flammable gas generated by dry distillation of wood chips
・Start of sales of electricity:In 2024
©2021 EXEO Group, Inc. All Rights Reserved.

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(4) System solutions
Pursue high-value-added solutions to achieve steady growth in both sales andprofits.
■ Trends in net sales■ Topics(billion yen)

Responding to new ways of working
Providing new services, including cloud services,such as providing a communication platform that
adapts to new ways of working.

Expansion of maintenance and operation
business p.19
Integrate services provided by individual Group
companies to expand the recurring business ,including security.

Improving profitability of overseas business
Expansion of business base in APAC and steady
improvement of profitability.
We have begun to develop new businesses in Japanthat originate from overseas businesses.
©2021 EXEO Group, Inc. All Rights Reserved.

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(4) System solutions
Leverage the resources of Group companies to create new solutions■ Trends in net sales

Planned Progress
Rate 49%

・System development
and service provision
Securing new revenue by
providing one- stop services fromupstream consulting and creating
new solutions.
©2021 EXEO Group, Inc. All Rights Reserved.

(billion yen)

Planned Progress
Rate 54%
Planned Progress
Rate 54%

Planned Progress
Rate 55%・Maintenanceand operation business
By utilizing the new Customer Center,
we will concentrate resources within
the Group and seek to expand ourrecurring business.

・Overseas business
Aim to expand business boldly andestablish a revenue base by creating
new business opportunities that
capture APAC's economic growth.

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(4) System solutions (Maintenance and operation business)
Expansion of maintenance and operation business to secure recurring business income(10 billion Scale business in FY 2025)

Consolidating Group Resources andEstablishing a Management Structure■Growth Image (Net Sales)(billion yen)

Consolidation of reception system by newly established Customer Center(24 hours a day, 365 days a year)

Expansion of maintenance bases (including M & A) in cooperation
with group companies
Full IT system refresh/implementation of Knowledge Sharing Tools
Expansion of maintenance and operation menu including security

10.0
Substantial increase

4.0

Plan
©2021 EXEO Group, Inc. All Rights Reserved.

Note: Newly established customer service center

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4. Group Strategies©2021 EXEO Group, Inc. All Rights Reserved.

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(1) Reorganization of group companies
Reinforcing group management and implementing reorganization to
maximize synergies＜Engineering subsidiary＞＜Common clerical subsidiary＞

Optimal construction system foreach area

Accelerate DX efficiency and reduce
costs

August 2021

December 2021

Integrated operations in the Hokkaido
and Tohoku areas.
The other areas will be implemented
as soon as the study is completed.

Combining resources to create
new services

Conducted restructuring of common
subsidiaries.
Consider expanding the scope ofoutsourcing.
July 2021

October 2021

＜Solution subsidiary＞＜Under consideration＞

January 2022

April 2022

July 2022★August 2021

Restructuring of subsidiaries in Hokkaido and Tohoku ☆Other areas under consideration★Scheduled for December 2021

Consolidation of functions of common OS companies andexpansion of consignment operations☆After April 2022

Reorganization of systems
solutions subsidiaries©2021 EXEO Group, Inc. All Rights Reserved.

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(2) Domestic M & A Results and Future Aims
Conduct M & A as appropriate to achieve the medium-term management plan
■ Implemented in November 2021

Major Grouping through M & A（2018 and later）

・RYOSEI SYSTEMS，LTD.（Urban infrastructure）

to2025⇒Reinforcement of electric power line construction
business and promotion of engineer training.

2021

Nishinihon Denwa Kouji⇒Reinforcement of maintenance and operation
business base and expansion of recurring business.

（Telecoms Carriers）

2020■ Future Action Policy⇒Securing engineers, complementing andstrengthening new business and expansion areas.
Acquisition of pioneering technologies andreinforcement of upper/lower layer systems.

・Strengthen the PMI⇒Maximize synergy effect©2021 EXEO Group, Inc. All Rights Reserved.

（Urban infrastructure）

IT-it CO., LTD.（System solutions）

・IT-it CO., LTD.（System solutions）

・Exploring M & A Destinations to Become
Growth Drivers

RYOSEI SYSTEMS，LTD.

Shinyei Densetsu （Urban infrastructure）
Okuniya Electric Industry （Urban infrastructure）
Vision.Systems （Telecoms Carriers）

2019

KDT （Telecoms Carriers）
SUN PLANNING SYSTEMS（System solutions）
CPU （System solutions）

2018

C-Cube, Seibu Electric Industry, Nippon Dentsu

KOHKEN （Urban infrastructure）
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(3) ESG Goals
Implementation of KPI management as an ESG management practice©2021 EXEO Group, Inc. All Rights Reserved.

23

5. Shareholder Return©2021 EXEO Group, Inc. All Rights Reserved.

24

(1) Dividends, Share Buybacks
Consistent and continuous shareholder returns based on DOE.
The year-end dividend for the current fiscal year is scheduled to be a commemoration dividend(2 yen) due to the name change in addition to the ordinary dividend.
■ Annual dividends: Will increase for the tenth consecutive year.
Year-end
dividend￥44 + ￥2
Interimdividend￥44■ Acquisition of treasury stock:
Will flexibly purchase treasury stock in light of market trends, results, and financial condition.
Our Company announced the repurchase of 3 billion yen in treasury stock for the current fiscal year andwill continue to make appropriate decisions in light of various circumstances.

■ Retirement of treasury stock: Implementation as appropriate based on business trends
1 million shares of treasury stock were cancelled this year.
©2021 EXEO Group, Inc. All Rights Reserved.

25

(2) Total Shareholder Return, ROE, EPS
Aim to steadily increase ROE and EPS by continuing to increase income
and capital efficiency.
■ Total Shareholder Return■ ROE/EPS(billion yen)Amountdetermined as ofNovember 2021

Fall in ROE due to M&A activities

Plan©2021 EXEO Group, Inc. All Rights Reserved.

26

6. Topics©2021 EXEO Group, Inc. All Rights Reserved.

27

(1) Workplace vaccination with COVID-19
Nationwide implementation of occupational vaccinations from early July to the end of
August 2021. Vaccination of approximately 9,000 people, including group employees,
family members, and employees at business sites, completed.

Vaccination at the Head Office Building©2021 EXEO Group, Inc. All Rights Reserved.

28

(2) Establishment of branch offices based on the concept of smart offices
A new office was established to consolidate our company's three business bases and fivegroup companies that had been dispersed in Sapporo. Improving operational efficiency
by introducing the latest equipment and promoting the creation of collaborative offices.

New Hokkaido Branch Office "EXEO Natrae" Building (Opened in May 2021)©2021 EXEO Group, Inc. All Rights Reserved.

29

(3) Introduction of electricity derived from renewable energy
Introduction of electricity from renewable energy sources at 38 sites in Japan.
Our company plans to switch all the power used at the Group's own sites by
fiscal 2025.
Power
generation

User

Power procurement

Retailelectricity
providerNon-fossil
certificate(Derived fromrenewable energy)

Green power supply(practically renewableenergy)Non-fossil
certificate

Note:By combining non-fossil certificates designated as renewable energy, it becomes practicallyrenewable energy that can be understood the origin of environmental value.

©2021 EXEO Group, Inc. All Rights Reserved.

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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.

©2021 EXEO Group, Inc. All Rights Reserved.

31