Annual Results for the Fiscal Year
Ended March 31, 2020 (FY 2019)
May 19, 2020

URL: https://www.exeo.co.jp/en/ir/
We renewed our website.

Contents
1. Overview of FY19 Results

3. Our M&A Strategy(1) Development Direction by Business
Segment(1) Performance Figures

・・・2(2) Orders Received

・・・3(3) Net Sales

・・・

4

4. Raising Shareholders’ Value(4) Operating Income・・・5(5) Cash Flow・・・

8(1) Shareholder Return Policy(2) Plan for shareholder returns for
FY20, etc.

2. Plans for FY20
(1) Performance Figures

・・・(2) Orders Received

・・・ 10(3) Net Sales

・・・ 11(4) Operating Income

・・・ 13(5) NTT Group (Access/Network)・・・ 14(6) NTT Group (Mobile)・・・ 15(7) NCCs

・・・ 16(8) Urban Infrastructure・・・ 18・・・ 19・・・ 20(9) System-Solutions(10) Efforts for Mid- to Long-Term Growth9

5. Topics(1) Singapore-based DeClout was madeinto a group company(2) Our company selected as"Nadeshiko Brand"－1－

・・・ 23・・・ 24・・・ 25・・・ 26・・・ 27

1. Overview of FY19 Results(1) Performance Figures◆ Sales increased substantially thanks to organic growth and year-round contributions
by the three companies in western Japan, but profit fell due to an increase in SG&A expenses.
◆ Profit for FY19 fell substantially as a result of the extraordinary loss recorded after
a review of valuation of the subsidiaries acquired.

■ Overview of FY19 results (consolidated)(¥bn)

FY 2019

FY 2018

Full year

Full year
Plan

ActualYOY

Plan
accuracy

A

B

C

C/A

C/B

Orders received

424.3

495.0

556.3

131%

112%

Net sales

423.7

495.0

524.5

124%

106%

117%

103%

140%

109%

98%

97%

92%

94%

39%

72%

Gross profit
SG&A expenses
Operating income
Ordinary income
Net income
attributable toowners of parent(13.8%)

58.3(6.3%)

26.6(7.5%)

31.7(7.9%)

33.4
Note:(9.5%)※

40.2

Note: Negative goodwill (18.3 billion yen) was
posted as an extraordinary loss in FY18.

(13.4%)

66.3(6.9%)

34.3(6.5%)

32.0(6.6%)

32.8(4.4%)

21.8(13.0%)

68.3(7.1%)

37.2

The impact of the COVID-19 coronavirus
on performance was seen to a slight
extent in overseas subsidiaries but was
extremely limited in FY19.

(5.9%)

31.1(5.8%)

30.6(3.0%)

15.6

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

－2－1. Overview of FY19 Results(2) Orders Received◆ Orders in urban infrastructure and system-solutions performed well, and orders exceeded ourtargets significantly in all segments, including the three companies in western Japan.

▲ KDDI○ SB○ Rakuten▲ Access▲ Network○ Mobile

SystemSolutions
Urban
Infrastructure +19.0
+11.9
NCCs
NTT Group
+4.1
-0.8
○ SI
○ NI
○ Global

424.3
Existing Exeo G→
Actual（348.2）(¥bn)○ Telecommunications
facilities○ Electricity supply○ Urban Civil
engineering▲ Environmental
engineering

Existing Exeo G（＋34.2）＋132.0

FY18

C-Cube+40.9

Seibu
Electric
Industry+34.8

Three companies
in western Japan（＋97.8）

NipponDentsu+22.1

556.3（382.4）← Existing Exeo G
Actual

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

－3－1. Overview of FY19 Results(3) Net Sales◆ Orders in urban infrastructure and system-solutions were favorable and grew significantly.
Net sales targets were achieved in all segments including the three companies in western Japan.
(¥bn)▲ KDDI▲ SB○ Rakuten▲ Access○ Network▲ Mobile○ Telecommunications
facilities○ Electricity supply○ Urban Civil
engineering▲ Environmental
engineering

SystemUrban
Infrastructure Solutions
NTT Group
+19.0
+10.7
NCCs
-7.1
-2.7

C-Cube+37.8

Seibu
Electric
Industry+23.5

NipponDentsu
+19.6

○ SI
○ NI
○ Global

423.7
Existing Exeo G→
Actual（337.4）

524.5
Three companies
in western Japan（＋80.9）

Existing Exeo G（+19.9）+100.8FY18（357.3）← Existing Exeo G
Actual

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

－4－1. Overview of FY19 Results(4) Operating Income◆ Operating profit decreased as the sales mix worsened and the SG&A expenses increased due to
M&A and new subsidiaries.
(¥bn)

Integration
synergyUp due to+0.2
increase in
sales
+3.1
Lower, lessprofitablesales mix
-3.8

31.7
Existing Exeo G→
Actual（27.4）(Integration synergy)+0.3 overOverseassubsidiaries
-1.0

Seibu
Electric Nippon
DentsuIndustry +0.8
C-Cube+0.8+2.0

Increase in SG&A
expenses (e.g. M&A)
-2.7
Three companies
in western Japan（＋3.6）

Existing Exeo G（-4.2）

-0.6

FY18

31.1
（23.2）← Existing Exeo G
Actual

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

－5－1. Overview of FY19 Results
Reference1: Synergy with three companies in western Japan◆ The cooperation policy with the three integrated companies in western Japan has beenproceeding well, and integration synergy has been steadily created.
■ While securing the profit level, concentrating operations in the same area as one operation
for better construction efficiency(NTT access/service comprehensive construction in the Kyoto-Osaka region, and others)■ Improvement of profitability through rebuilding of construction formation(reduction of outsourcing costs outside the group by mutually utilizing subsidiaries)■ Acquisition of orders through sales collaboration and construction collaboration andprovision of mutual support for construction work on a nationwide basis(e.g. the joint response of the three companies to Rakuten Mobile’s construction in theTokyo-Nagoya-Osaka area)

Synergy from integration
over 500 million

FY19 actual per year－6－

On a consolidated operating profit basis,
we securely generated the integration
synergy of 500 million per year as initiallyplanned for FY19.

1. Overview of FY19 Results
Reference2: Trends in Group company profitability◆ The group companies achieved significant growth, and the ratio of consolidated to
non-consolidated profits more than doubled.

■ Trends in operating profits over the past five years (consolidated/non-consolidated)(Ratio of consolidated to
non-consolidated profits)

（1.8）

（1.9）

（1.7）

（1.8）

（2.3）

31.7

31.1

(¥bn)

25.6
13.6
20.8
Group companies

10.5

18.4

Exeo alone

8.4

17.5

9.6

15.1
10.0

11.2

FY15

FY16

FY17

18.1
13.6

FY18

FY19

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.

－7－1. Overview of FY19 Results(5) Cash Flow
◆ Cash flow is stable and ample cash on hand has been secured.
(¥bn)■ Cash flow (consolidated)
FY16

FY17

FY18

FY19

Cash at beginning of FY

16.0

15.2

30.3

41.4

Operating activities

15.5

24.8

12.7

17.2

Investing activities

-6.0

-4.5

-17.6

-17.0

Financial activities

-10.2

-5.1

-4.9

4.2

21.0

0.1

41.4

46.0

Increase/decrease of cash
due to share exchange

Cash at end of period

15.2

30.3

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

－8－

2. Plans for FY20
(1) Performance Figures◆ We strive to increase sales through organic growth, but the impact of the COVID-19 coronavirus
is somewhat unclear.
◆ Although business activities are partially limited, we aim to achieve a record-high profit while
improving productivity.

■ Plans for FY20 (consolidated)(¥bn)
FY 2020

FY 2019
Actual

Plan

YOY

A

B

B/A

Orders received

556.3

525.0

94%

Net sales

524.5

525.0

100%

Gross profit
SG&A expenses
Operating income
Ordinary income
Net income attributableto owners of parent(13.0%)

68.3(7.1%)

37.2(5.9%)

31.1(5.8%)

30.6(3.0%)

15.6(13.8%)

72.5

106%

(7.7%)

40.5

109%(6.1%)

32.0

103%(6.3%)

33.0

108%(4.0%)

21.1

In plans for FY20, the impact of
the COVID-19 coronavirus on performancehas been reflected in items only where theimpact is clear based on the information
currently available.
<e.g.>
・ Decline in sales due to the temporary
suspension of construction insidecustomers’ houses
・ Decline in orders for solutions related
to commercial facilities and others dueto their limited operations

135%

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

－9－2. Plans for FY20(2) Orders Received◆ Orders are expected to decrease temporarily against the previous fiscal year’s large orders inurban infrastructure and the three companies in western Japan.

▲ Access▲ Network▲ Mobile

Urban
NCCs
±0 Infrastructure-12.6
NTT Group-12.4○ KDDI▲ SB○ Rakuten

556.3
Existing Exeo G →Actual（382.4）▲ Telecommunications
facilities▲ Electricity supply○ Urban Civil
engineering○ Environmental
engineering

SystemSolutions
+14.1

(¥bn)

Seibu
Electric
Industry Nippon
Dentsu-9.0±0

C-Cube
-11.4

○ SI
○ NI
○ GlobalThree companies
in western Japan（-20.4）

Existing Exeo G（-10.9）525.0（371.5）← Existing Exeo G
Plan

-31.3

FY19

FY20 Plan
Note: All amounts less than ¥100m are disregarded.

－10－

2. Plans for FY20
(3) Net Sales◆ Although the impact of limited construction and other constraints is somewhat unclear,
we focus on completing a large amount of carried-over construction work, aiming toincrease sales.
▲KDDI
○ SB
○ Rakuten▲ Telecommunications
facilities○ Electricity supply○ Urban Civil
engineering○ Environmental
engineering

NCCs
Urban
+7.2 Infrastructure
NTT Group
+6.4
-11.4

(¥bn)

Seibu
Electric
C-Cube Industry
-8.1
-3.0

NipponDentsu+0.3

SystemSolutions+9.1▲ Accessー Network▲ Mobile

524.5
Existing Exeo G →Actual（357.3）

Existing Exeo G（+11.3）ー SI○ NI○ GlobalThree companies
in western Japan（-10.8）525.0（368.6）← Existing Exeo G
Plan

＋0.5

FY19

FY20 Plan
Note: All amounts less than ¥100m are disregarded.

－11－

2. Plans for FY20
Reference: Status of projects carried over
◆ Work carried over will continue to increase because of the increased number of orders forlarge construction projects for urban Infrastructure with longer construction periods.

■ Transition of amount of work carried over (consolidated)

(¥bn)

230.9
196.6
118.3

FY15

143.5

FY16

155.9

（169.9）

FY17

FY18

（197.6） ← Existing Exeo G
Actual

FY19

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

－12－

2. Plans for FY20(4) Operating Income◆ Although the worsening of the mix and the increase in SG&A expenses are expected,
we aim to achieve record-high income, while improving productivity.

Improvement from
UnprofitablestatusSales mix
＋2.1
-2.9

Up due toincrease in sales+1.2
Improved
Productivity
+3.9

31.1
Existing Exeo G →Actual（23.2）(¥bn)

C-Cube-0.7

Seibu
Electric
Industry-0.2

NipponDentsu+0.2

Increase in
SG&A expenses(e.g. new consolidation)-2.7

Three companies
in western Japan（-0.7）

Existing Exeo G（+1.6）

＋0.9

FY19

32.0
（24.8）← Existing Exeo G
Plan

FY20 Plan
Note: All amounts less than ¥100m are disregarded.

－13－

2. Plans for FY20(5) NTT Group (Access/Network)◆ Access construction is expected to decline, but maintenance and construction for disastercountermeasures have been increasing gradually in recent years.
◆ In line with the launch of 5G, network construction for mobile backhaul is expected to increase.

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

1.

(¥bn)
Existing Exeo G

151.8

115.8

32.5

62.1

installation, etc.
● Acceleration of restoration(full-year plan)

168.3● Reinforcement of facilities,
underground cableThree companies in western Japan

178.2

117.7

Improvement of reliability ofcommunication networks（including multiple transmission routes）

response, estimation of
2. Securing of important
communication

3. Early
restoration

damages using AI, etc.

(Source: Created by Kyowa Exeo based on NTT presentation material)

61.2■ Illustration of network construction transition
Note: MBH: mobile backhaul

Construction of K/SB/Rakuten’s 5G-MBH

FY17

119.3

FY18

116.1

FY19

107.1

FY20 Plan

Electric power
construction

FY16

115.8

Network
construction

117.7

－14－

Virtual field, platform update, etc.

docomoNTT

Construction of NTT5G-MBH

Non-NTT electric power construction

NTT electric power facility installation work
20年度
FY20

21年度
FY21

22年度
FY22

23年度
FY23

24年度
FY24

Non-NTT

NTT
25年度
FY25

2. Plans for FY20
(6) NTT Group (Mobile)◆ 5G construction has begun, but it is assumed that full-scale investment in the base stations
should start in or after the next fiscal year.
◆ As the construction of small base stations increases, we will cooperate with Access andundertake construction effectively.
■ Net sales of NTT Group(mobile network, consolidated)■ Image of NTT DOCOMO Main Processes (our company's assumption)
FY19

FY20

FY21

FY22

FY25

(¥bn)
Existing Exeo G

Three companies in western Japan
Generation& mainprocess
Frequency

50.6

51.5

51.7
2.8

49.5
4.5

(full-year plan)

47.3■ Illustration of NTT DOCOMO’s 5G area development

4.7

3.7GHz

50.6

FY16

51.5

FY17

48.9

FY18

45.0

FY19

4.5GHz28GHz

500 cities including all
ordinance-designatedcities

42.6

500 stations47
in 150 locations prefecturesnationwide

FY20 Plan

－15－

March
FY20

June
FY20

March
FY21

20,000stations
10,000stations

June
FY21

March
FY22

(Source: Created by us based on NTT DoCoMo presentation material.)

2. Plans for FY20
(7) NCCs◆ Orders from KDDI are expected to recover slightly. We will continue to work actively on SB and Rakuten construction.
◆ Rakuten wireless base station construction has started nationwide, and we are working with the three companies
in western Japan to respond.

■ Estimate of KDDI’s network construction■ Net sales of NCCs (consolidated)

FY19

(¥bn)
Existing Exeo G

Three companies in western Japan

K
D
D
I

FY21

FY20

Pre 5G

Non-standalone

Standalone(Source: Created by us based on KDDI presentation material.)(full-year plan)

46.9
38.0

11.0

5G Pre

12.1

23.3

FY16

FY21
5G facility

5G Service

Service

FY22

FY23

2 years ahead

installation

End of 3G

28.1

FY17

31.4

FY18

28.6

FY19

Shared use of

Measures for

Maintenance/

Disasterbase stations

increased demand

repaircountermeasures

35.9

FY20 Plan

Rakuten

23.3

FY20

FY19

SB

28.1

6.6

40.7

■ Estimate of Softbank’s and Rakuten’s network construction－16－

4G PreService

Landmarks

4G Service
5G Service

Outdoors

Indoors

EventsLocationswith no signal

Spots

2. Plans for FY20
Reference: Investment Trends of Major Telecom Carriers(Source: Figures released by the telecommunications carriers)■ NTT East/West
547.9

549.6

Optical fiber

541.0

522.5

■ NTT DoCoMo
597.1

577.9

(¥bn)
593.7

572.8

480.0

Unpublished

156.0

154.0

161.0

150.0

156.0

FY16

FY17

FY18

FY19

FY20
Plan

FY16

Mobile■ SoftBank■ KDDI
519.3

560.8

601.7

615.0

0.0
FY17

FY18

FY19

FY20
Plan

合計

610.0

320.5

350.1

381.6

369.8

FY18

FY19

400.0

325.0

FY16

FY17

FY18

FY19

FY20
Plan

FY16

－17－

FY17

FY20
Plan

2. Plans for FY20(8) Urban Infrastructure◆ Construction for 700MHz Band TV reception measures is declining, but sales are expected toremain strong until this fiscal year.
◆ We aim to continue to win large orders for electrical work in places such as data centers.
■ Urban Infrastructure net sales (consolidated)■ 700 MHz Band TV reception measures(¥bn)
Existing Exeo G

Three companies in western Japan

Replacement
Installationof boosterOrof filter

Construction areas of theCompany(full-year plan)

108.6

135.2

137.7

33.7

29.8

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

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)■ Data center work
Assumed scale of orders received
by KYOWA EXEO alone

17.1
67.3

Kanto andKoshinetsu

Approx. 20 billion yen

74.5

67.3

74.5

FY16

FY17

91.5

FY18

101.5

107.9

FY19

FY20 Plan

Approx. 140
billion yen
Forecast of domestic business operators’ investment for new
construction or expansion of data centers (Source: Createdby us based on official information from IDC Japan)

－18－

FY20

FY21

FY22

FY23

2. Plans for FY20(9) System-Solutions◆ We will focus on expanding new solutions such as GIGA School and ServiceNow.
◆ We will establish a foundation for global growth mainly in the APAC region.
■ Solution Map (added value expansion plan)■ System-Solutions net sales(consolidated)

Relationshipreinforcement

Proprietary package productProductivity improvement

Enhancement of B2B sales ability

Construction work
management

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

Customer(¥bn)

Manager

Sales representative

Map information

Business visualization

IT operation optimization

AI / Analytics

IT
operation

Security
Helpdesk

In-memory dataprocessing

Service management platform

Manager

AI data analysis

Stakeholders

WorkerDigitalization of work

(full-year plan)

120.7

73.4

54.8

124.8

Work
details

Communication
Sales ability enhancement
Sales
activity

49.7
Work

39.7
39.7
FY16

42.5
42.5
FY17

26.5
46.9
FY18

Sales
management

FY19

Securing
safetyFosteringofengineers

Construction
work

Design

Sales

Flow

65.9

Competitiveness enhancement
Paperwork
efficiency
improvement

Divisionspecificwork

MaintenanceDigitalization of business process

75.1
Business process transformation solution

FY20

Business
process
analysisPlan

Business process management
Sales

Orders

Delivery

Maintenance

BPM platform
BPM platform solution/RPA solution－19－

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

2. Plans for FY20(10) Efforts for Mid- to Long-Term Growth◆ We will further advance activities for the expansion of the existing solution business, andprovide our products in combination with partner products to help customers move forward with DX.
DX: digital transformation

Provide one-stop full layer solutions in

KYOWA EXEO’s own products

Partner’s products

and technologies

and technologies

collaboration with group companies.

Challenges are:
Improvement of
IT operation efficiency

IT-related

Implementation of COVID-19
countermeasures

Expanded use of cloud・・・

Update of key systems
under the 2025 Digital Cliff

Sophistication of factories

Work-related

Energy saving and environmental
measures for buildings
Urgent disaster countermeasures

Best suited solution models
The solutions are:・ Automated operation using ServiceNow・ Implementation of telework using Microsoft Teams

チームコラボレーション

Teams・ Optimization of IT infrastructure and security enhancement

AWS
Azure

・ Visualization and transformation of business processes using iGrafx
・ Construction of optimal network using local 5G,
EX beacon, and others
・ Efficient power supply and eco-friendly measuresusing DC power supplies
・ Installation of disaster-prevention IoT to monitor water levels
and portable storage batteries－20－

2. Plans for FY20(10) Efforts for Mid- to Long-Term Growth◆ Efforts for new technologies and areas (examples of new products that we are working on)

GIGA School
The GIGA School Concept, which is led by the Japanese Ministry of
Education,
Culture, Sports, Science and Technology (MEXT), is a 5-year plan to provide

In collaboration with companies in the market andstudents in compulsory education with personal computers for studying

related organizations, we aim to offer engineering,
solutions, maintenance, and other services.

(one per student), a high-speed network environment, and other measures.
◆Government’s supplementary budget◆ 461 billion yen (FY19+FY20)=> Installation of in-school network 129.6 billion yen
Provision of PCs and other terminals

331.4 billion yen

Local 5G

Service Now
ServiceNow is a U.S. cloud service company that offers
workflow platforms to enhance corporate productivity withthe objective of reforming people’s workstyles.

Develop the contracted installation
business for clients, and increase certified
engineers to expand businesses.

1,339.8

Forecast of total demandin Japan

598.8

Ave. increase of
71.3% per year

6.2

302.3
9.0
124.3
169.0

2020

2025

(¥bn)

45.0

Infrastructure
IoT equipment
Solution services

696.0

2030

(Source: Created by us based on information from the Japan Electronics andInformation Technology Industries Association (JEITA))－21－

2. Plans for FY20(10) Efforts for Mid- to Long-Term Growth◆ Work on the improvement of productivity through the digitalization of business processes
Promotion of work innovation

Improvement of expense calculation process=> Automatic entry of travel and other expense
payments from transportation IC cards andthe digitalization of receipts

・ Improvement of desk work and on-site work processes
・ Business process transformation throughthe digitalization of analog operations

・ Improvement of workplace environments, and others

Creation of smart offices=> Creation of a smart office at our DX Strategy
Department in the Shinagawa office to promote
work-style reform

Send

Safety management server

Pass

Safety check status

AI-based photo evaluation

Promotion of system innovation

Fail

Safety check status

Re-send○Cherry picker truck○Safety cones○Bars？ Enclosure check
Correctly positioned safety bars?

○Cherry picker truck○Safety cones○Bars○Enclosure check

RetakeConfirm

on vehicle side

Retake・ Use of new technologies such as AI and IoT・ Building of data analysis platforms, and others

Installation of AI-based photo evaluation systemfor on-site operations

No safety bars positioned

Reposition
Retake photo

・ Review and group sharing of common and business systems

Confirm－22－

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・ Generation of synergy with each of the companies
merged and previously acquired
・ M&A aiming at enhancing implementation systemand expanding maintenance・M&A in the power/air conditioning field, where synergy can be generated
・M&A in the facility maintenance field
2018
ＫＯＨＫＥＮ2018
C-CubeAnticorrosion
coating
2019

2010
Ikeno
Tsukeneiwa-builtech
air conditioning
sanitation

Currently: Exeo Tech
2011
Wako
Engineering

2020(Partial investment)

2011
Daiwa
Densetsu

Sanetsu

Instrumentation

Winner E

Electricity supply

air conditioning
sanitation
2019

DeClout
ＮＩ

2019

KDT

Icom

2014

ＳＩ

AID

2015

ＳＩ

WHERE
ＮＩ

2019

SPS
ＳＩ

Expansion of SI, NI, and global fields
・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

System Solutions
－23－

2018
NipponDentsuCompetitors(mainly undertaking
NTT's communication
facility construction)

2011

2018

LAE
2019

2018
Seibu
Electric
Industry

2019

CPU
ＳＩ

4. Raising Shareholders’ Value(1) Shareholder Return Policy◆ Our fundamental policy is to make active and stable dividend payments to all shareholders.
◆ From the FY2018 dividend, DOE was raised to around 3.5% to strengthen shareholder returns■ FY2020 planned annual dividend: 82 yen
FY17

FY18

FY19

FY20 Forecast

DOE 3％

DOE 3.5%(integrated from 2H)

DOE 3.5％

DOE 3.5％

Annual dividends
per share

¥50

¥70

¥80

¥82

Total annual dividends¥4.78 billion¥7.31 billion¥8.97billion¥9.21billion

26.4％※32.9 ％

57.2％

43.4％

Item

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

■ Basic concept of treasury stock repurchase
Comprehensively consider cash flow and other items while watching market trends
and share price level, and flexibly repurchase stock.

－24－

4. Raising Shareholders’ Value(2) Plan for shareholder returns for FY20, etc.
■ Total shareholder return■ Dividend history (per share)
80(Total dividends + total acquisition of treasury stock)Total dividends

¥82

70

46

Total acquisition of treasury stock

13.9

Year-end
41 plan

50

10.3
7.3

Interim
41 plan

FY16

FY17

FY18

FY19

3.0

FY20 Plan■ Acquisition of treasury stock

Undecided

5.0

0.0
9.2

8.9

9.2

FY19

Plan
FY20 PLAN

3.0
4.7

4.3

4.7

FY16

FY17

7.3

FY18

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

¥5.0 bn

EPS
189

3.0

145

3.0

10.8%

ROE

212

10.0%

¥189
139

8.9%

Undecided

7.8%
5.9%
FY16

FY17

FY18

FY19

FY20 Plan

FY16

－25－

FY17

FY18

FY19

FY20 Plan

5. Topix(1) Our company Employee Wins Gold Medal at Skills Competition◆ Employees of Ebihara in our company successfully won the gold medal in the informationnetwork construction category at the "The 57 National Skills Competition" held in AichiPrefecture for 4 days from November 15, 2019.
■ Our company Employees Win 7th Gold Medal at National Skills Competition for the First Time in 3 GamesIn addition, our company employees have participated in international competitions held every other year
5 times in the past as representatives of Japan, and have won gold medals in all competitions.

Note: The National Skills Competition is a competition in which young technicians under the age of 23
compete in skills by event. This competition has 1,239 athletes participating in 42 job categories.
Employees of Ebihara participated in the "information network construction" race, in which they
competed in speed competitions of fiber-optic fusion splicing and wiring tasks for buildings
during a fixed time of approximately 8 hours in 2 days.

－26－

5. Topix(2) Our company selected as "Nadeshiko Brand"◆ In fiscal 2019, the Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange jointly
selected listed companies that excel in promoting women's participation and career advancement"Nadeshiko Brand“ ,and our company selected as it’s brand (Announced March 3, 2020).
As part of its management strategy, our company is actively promoting diversity. Based on thecommitment of top management, we have announced quantitative targets for the promotion of
women's participation in the workplace, and are working to improve the awareness of management,
male employees, and female employees, as well as implementing various training programs andreview of the system. We are also actively working to improve productivity in conjunction with DX(digital transformation) initiatives.

Note: The "Nadeshiko Brand" is a program launched jointly by the Ministry of Economy, Trade and Industry and the Tokyo
Stock Exchange in fiscal 2012 to promote investment in companies and accelerate the efforts of listed companies byintroducing companies that excel in "Promotion of Women's Activities " as stocks attractive to investors who place
importance on medium- to long-term corporate value improvement. In fiscal 2019, 46 companies in each industry wereselected.

－27－

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 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.