Annual Results for the Fiscal Year Ended
March 31, 2023（FY 2022）
May 19, 2023

Contents
４．Initiatives to Enhance corporate
value

１．Overview of FY2022 Results（１）Initiatives to Enhance corporate value（１）Financial Highlights

・・・

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

・・・

5（２）M&A・・・ 22（３）Results Highlights(Operating Profit)・・・

6（３）Cash Allocation Policy

・・・ 23（４）Results Highlights(Segment Information）

・・・

7（４）Implementation of ESG Management

・・・ 24

２．Forecast for FY2023 Performance（Improving ROE）

・・・ 21

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

・・・ 10（１）Dividends, Share Buybacks

・・・ 30（２）Total Shareholder Return, ROE, EPS

・・・ 31

6．Topics

３．Initiatives by Segment（１）Telecoms Carriers・・・ 12（１）Expanded Neutral Hosting・・・ 33（２）Urban Infrastructure・・・ 14（２）Initiatives for DfMA construction

・・・ 34（３）System Solutions

・・・ 17（３）World record set at International Skills
Competition Qualifiers・・・ 35©2023 EXEO Group, Inc. All Rights Reserved.

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１．Overview of FY2022 Results©2023 EXEO Group, Inc. All Rights Reserved.

3

（１）Financial Highlights
Net sales reached a new high of 627.6 billion yen, and theamount carried forward reached another record high.
Operating profit falls to 32.5 billion yen, but plansto recover in FY23.
Increase dividend level to DOE4.0% and annual dividend to
120 yen.
Announced acquisition of treasury stock of 3 billion yen,
we will continue to make a continuous return.
©2023 EXEO Group, Inc. All Rights Reserved.

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（２）Results Highlights（Orders Received, Net Sales）
Net sales hit a record high. Orders received also near record highs.
■ Orders Received

Increased by 5％ YOY©2023 EXEO Group, Inc. All Rights Reserved.

■ Net Sales（billion yen）

Increased by 6％ YOY

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（３）Results Highlights（Operating Profit）
Operating profit decreased due to investment restrains by mobile carriers, theoccurrence of transient unprofitable projects and the lump-sum amortization of
goodwill.
■ Operating Profit（ billion yen ）Telecoms Carriers▲6.5

Unprofitable projectLump-sum amortization

Urban infrastructure

▲1.7

▲2.3

System Solutions

＋0.6

▲9.8

©2023 EXEO Group, Inc. All Rights Reserved.

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

Telecoms Carriers

Urban Infrastructure

System Solutions

Net sales
Segment profit

Special factors
・unprofitable projects 0.4B yen
・the lump-sum amortization of
goodwill 0.4B yen
※

※

※
※

※Adjusted for special factors©2023 EXEO Group, Inc. All Rights Reserved.

Special factors
・unprofitable projects 1.4B yen
・the lump-sum amortization of
goodwill 0.1B yen※Adjusted for special factors

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２．Forecast for FY2023 performance©2023 EXEO Group, Inc. All Rights Reserved.

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（１）Plan Summary
Plan for continued revenue growth through expansion of urban infrastructure and systemsolutions. Aim to improve profitability and increase profits by further restructuring amidsoaring materials prices.

FY2022（billion yen）

ActualA

FY2023
Plan
B

YOY
BーA

Orders received

625.6

620.0

▲5.6

Net sales

627.6

630.0

＋2.4

Operatingprofit

（5.2%）
32.5（5.4%）
34.0(＋0.2P)＋1.5©2023 EXEO Group, Inc. All Rights Reserved.

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

Telecoms Carriers

Urban Infrastructure

System Solutions

Net sales
Segment profit©2023 EXEO Group, Inc. All Rights Reserved.

103．Initiatives by Segment©2023 EXEO Group, Inc. All Rights Reserved.

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

FY2023 Plan
We expect the trend of investment
restraint by telecom carriers to continue.
Net sales and profits will decline, but wewill work to reduce the margin of decline
by restructuring the entire Group.

■ Trends in segment profit

Main Initiatives
・Slimming down the structure to matchworkload and shifting personnel togrowth areas
・Improving productivity by standardizing
and leveling operations
・Promoting operational improvements
through AI, offshore operations, etc.

©2023 EXEO Group, Inc. All Rights Reserved.

12

（１）Telecoms Carriers- Structural Reform 2.0 -Implement “Structural Reform 2.0 “to accelerate organizational productivity
growth in response to the rapid slowdown of telecoms carriers.

Telecoms Carriers

Organizational Integrationof Construction Systems

Decrease in construction efficiency（ work volume decrease 、 Construction system for each carrier ）Carrier A

Carrier B

Multi-carrierStandardization of construction process
Integration of construction organization
Slimming down
Shift personnel toexpanded fields

Urban Infrastructure
Expansion of electric, power and smart energy businesses
Expansion of railroads, public and other social
infrastructure facilities
Expansion and synergy with infrastructure-relatedgroup companies©2023 EXEO Group, Inc. All Rights Reserved.

Productivity increase
System Solutions

Proposing business models using solutions
Strengthening high-value-added areas
Expansion and synergy with SI Group companies
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（２）Urban Infrastructure■ Trends in net sales(billion yen)

FY2023 Plan
Aggressively expand operations, particularly
in energy units, which are performing well.
Continued efforts to improve profits despite
factoring in higher material and energy costs.

■ Trends in segment profit
Special factors
・unprofitable projects 0.4B yen
・the lump-sum amortization of
goodwill 0.4B yen

Main Initiatives
・Strengthening systems to expand newenergy markets such as batteries and EVs
・Taking on the challenge of the offshore
wind business (private line civil works)
・Reforming design and estimation
operations using offshore and BIM/CIM©2023 EXEO Group, Inc. All Rights Reserved.

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（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.)©2023 EXEO Group, Inc. All Rights Reserved.

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（２）Urban Infrastructure（Deployment from Energy Units)
Aim to width out from energy units centered on data centers to peripheralbusiness areas.
Equipment of
Building

工事

LAN/WANAir conditioning
and hygiene

Server・Rack
Battery
Solar Power
Generation Facilities
Electricity/Power©2023 EXEO Group, Inc. All Rights Reserved.

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（３）System Solutions■ Trends in net sales（ billion yen ）FY2023 Plan
Aggressively allocate resources to highly
profitable business areas by securing
human resources and strengthening thesystem. Further improve profitability
while expanding the business.

■ Trends in segment profit
Special factors
・unprofitable projects 1.4B yen
・the lump-sum amortization of
goodwill 0.1B yen

Main Initiatives
・Improve productivity by leveraging
economies of scale throughrestructuring of two core IT companies(EDS and ESM)
・Expand managed services bystrengthening maintenance andoperation functions
・Expand refurbishing business globallyand expand in Japan©2023 EXEO Group, Inc. All Rights Reserved.

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（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)©2023 EXEO Group, Inc. All Rights Reserved.

・Overseas projects Unit

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（３）System Solutions（Managed Services Initiatives）
Expanded managed services using technologies developed throughdevelopment and construction.
Challenged to transform business model to become a solution provider.

Business
Strategy

IT lifecycle
Introduce
MigrateZero Trust
Security

Planning
DesignConservative
Management

Cloud
ServicesManaged Services

T

EX

S

O

Office Software

Teams

Exchange

Sharepoint

OneDrive

Desktop

AD

I

Azure
Virtual Desktop

Azure AD

IntuneDefender for
Endpoint

Power
PlatformP

Microsoft 365
Security Services
Support Desk
Security in
GeneralZero Trust Security Management

Network Operation Center
Security Operation Center

Internet

Procurement

NW

Develop
Build

365

IT Integrated
Operations Services

Internal System

Internet

Internal
Network

SD-WAN

ZTNA

Network
Operations

Internal Network©2023 EXEO Group, Inc. All Rights Reserved.

Electronic
Terminal・User Support
・Maintenance Support
・Operations Management
・Terminal Kitting and Management

HDD Encryption
Multi-factor
authentication

Internal

Home

Secure PC

Smartphone

EDR

Terminal Kitting
and Operation

Kitting Center

19

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4． Initiatives to Enhance corporate value©2023 EXEO Group, Inc. All Rights Reserved.

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（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

Increase in orders and sales

Expand existing businesses
Shift personnel and invest in growth areas

Higher gross margin

Business consolidation and maximum use of DX
Ensuring stable earnings by strengthening the recurring business【ROE】

ProfitProfitReducing Selling and Administrative Expenses

Radical review and reform of operations
Maximum use of group resources across company lines

Sale of unwanted assets

Making the most of one's real estate holdings and early sale of unwanted assets
Continued reduction of cross-shareholdings

Capital

M&A

M&A focusing on investment effectiveness and profitability

CapitalTaking advantage of interest-bearing debt
Consecutive dividend increases based on DOE4.0% policy
Continuous repurchase of treasury stock©2023 EXEO Group, Inc. All Rights Reserved.

21

（２）M&A
Aggressively continue M&A to increase scale and further improve profitability■ Results of acquired subsidiaries■ M&A policy※Aggregate of subsidiaries that have joined the Group since fiscal 2018.
However, three companies in western Japan Company Group are excluded.

portfolio for 2030
・Select investment targets with an eye toinvestment effectiveness and profitability, andestablish a monitoring system
・ Restructure asset portfolio by selling cross-shareholdings

Net sales（ billion yen ）operating margin

FY19

FY20

・Find strategic M&A destinations to build business

FY21

FY22

Business Areas

Main Purpose

Urban Infrastructure

・Strengthening energy business・Developing renewal business・Expanding business scale

System Solutions

・Accelerating Managed Services
・Developing Refurbishing Business・Acquiring Pioneering Technology
・Localization/Offshore Utilization

FY23 Plan■ Major Investments in FY2022
Companies

RegionIseki Polytech Inc,
Procurri Corporation Ltd.
SANDEN SYSTEM ENGINEERING CORPORATION ※Sanetsu Corporation
Telistar Solutions Pte Ltd.

Urban Infrastructure
System Solutions(Global)
System Solutions
Urban Infrastructure
System Solutions(Global)※ The company changed its name to EXEO・Core Innovation©2023 EXEO Group, Inc. All Rights Reserved.

22

（３）Cash Allocation Policy
Increase corporate value by effectively using generated cash and interestbearing debt
■ Cash Allocation Policy (FY 2021 to FY 2025)

・Building a foundation for growthsuch as DX⇒ Estimated size of 70 billion yen
over 5 years

・Maintaining Financial Soundness
・Funding with ESG in mind

InterestBearing Debt

・Reduce WACC through low-costfunding

Sale of Assets

・Reduction of cross-shareholdings
・Early sale of unneeded real estate

45 billion ～120 billion yen ～EBITDA225 billionyen(45 billion yen
per annum)©2023 EXEO Group, Inc. All Rights Reserved.

Shareholder
Return100 billion yen

Various Tax
Payments andOthers・Cash-flow expansion throughsteady growth・Realizing returns that exceed thecost of capital

GrowthInvestment

Cash
Generation

Cash
Allocation

・Growth through M&A will continue⇒ 50 billion yen in Japan andoverseas・Aggressively allocate cash tohuman resources/R&D
・Consecutive dividend increases
by DOE4.0%
・Continuation of share repurchases
・Further improvement of capitalefficiency

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（４）Implementation of ESG Management（Materiality）
Identifying Materiality to Strengthen Sustainability Management

2030Vision“Engineering for Fusion”

The Four Societies We Aim For
CarbonNeutralSociety

A Society in which
A Smart Society
A Global
poverty andpeople can live
andinequality
arehealthy andDiverse Society eliminatedvivaciously

Connecting our world – to all our tomorrows

Materiality

Extracting
Challenges

Identify Materiality
Specific Process①Long List creation (See GRI Standards, SASB, etc.)②Scoring/Workshop (Prioritization)③Validity verification through interviews with

Results
Identified

outside stakeholders and outside officers④Approval by the Management Committee and
Board of Directors©2023 EXEO Group, Inc. All Rights Reserved.

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（４）Implementation of ESG Management（Materiality）
Solving Social Issues through “Engineering to Connect"
Value Creation●【E】 Achieving a Carbon-neutral society●【E】 Contributing to the Circular economy●【S】 Building and preserving infrastructure as the foundation of society●【S】 Contributing to local communities and building good relationships●【S】 Promoting construction DX

Creating an Environment in which Diverse Human Resources can Flourish●【S】 Training and Recruiting Human Resources for Value Creation●【S】 Safety and Health of All Workers●【S】 Respect for Diversity and Creating a Vibrant Workplace●【S】 Enhance Productivity by Promoting DX

Cultivating a corporate culture that generates innovation
Foundation for
Value Creation●【S】 Encouraging the challenge of the unknown and the improvement of skills●【S】 Establishing brand value as a group●【S】 Cultivating new possibilities as a global player●【S】 Collaborating with diverse partners

Fair and transparent group governance【E】 Environment【S】 Society【G】 Governance©2023 EXEO Group, Inc. All Rights Reserved.

●【G】 Ensuring sound and transparent governance●【G】 Thorough risk management and compliance●【G】 Enhanced information security in terms of both hardware and human resources●【S】 Respect for human rights
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（４）Implementation of ESG Management（Domestic: Environment-related businesses）
Solving social issues through environment-related businesses■ Woody biomass power generation■ Farming solar power generation

Ashikaga Eco Park

Biomass power plant(Furudono-town)

Demonstration facility(Higashimatsuyama City)■ Waste treatment facilities(comprehensive operation)

Operation and monitoring facilities©2023 EXEO Group, Inc. All Rights Reserved.

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（４）Implementation of ESG Management（Global: Refurbish Business）
Aim to expand by combining carbon neutral initiatives with refurbishing business■ Refurbish Business
3. Current statussurveyConduct on-site inspections
and inspections of existing IT
equipment

2. Product offering
Provision and installation ofequipment
Launch of carbon neutral PCs

１．Procurement

Procurement of new, reused andlike used products worldwide

4. Maintenance
Services

Provide SLA-based productrecovery and replacement
support

5. appropriate
treatmentCollection of IT equipment,
implementation of disposal
and data erasure services

6. Recycling

Recycling and reselling
equipment to customers

Carbon Footprint Standard
International standards by Carbon Footprint Ltd.
to certify low carbon status
Certified as a “Carbon Neutral Organization”

Certified as a “Carbon Neutral Plus Organization”

Providing Certified “Carbon Neutral Laptops” Certified
by the Carbon Footprint Standard
Purchasers can report a reduction in CO2 emissionsof approximately 316 kg per laptop

Customers in the UK, etc.
Environmental benefits of remanufactured laptops by Procurri and Circular Computing- Prevents about 316 kg of CO2 emissions per laptop (1,000 PCs equal 1 year's worth of 80 cars)- Conserves 190,000 liters of water, protects 1,200 kg of global resources, etc.

©2023 EXEO Group, Inc. All Rights Reserved.

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（４）Implementation of ESG Management（Others）
Continue various other initiatives and earn external recognition■ Approved as a stock in MSCI Japan ESG Select Leaders Index
MSCI selects companies with excellent ESG evaluation from the top 700 stocks in Japan.

■ Received the “Best Workplace for Diversity＆Inclusion” ,the highest evaluation in ”D&I Award 2022”.
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 2022”.

An evaluation index for LGBTQ and other sexual minorities in the workplace developedby “work with Pride”, a voluntary organization.

■Recognized as a "B" 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 "B" rating is the third highest rating.
©2023 EXEO Group, Inc. All Rights Reserved.

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

29

（１）Dividends, Share Buybacks
Beginning in FY23, the dividend policy has been changed to a 4.0% DOE basis,and the company plans to increase its dividend for 12 consecutive fiscal years(120 yen per year in FY23). Purchase of treasury stock continuously and flexibly.
■ Annual dividends
Consecutive dividend increases
for 12 fiscal years (planned)©2023 EXEO Group, Inc. All Rights Reserved.

30

（２）Total Shareholder Return, ROE, EPS
Enhance shareholder returns through continuous dividend increases andongoing share buybacks.
Continue to operate the business with an awareness of capital efficiency toachieve the goals of the Medium-Term Management Plan.
■ Total Shareholder Return■ ROE/EPS（billion yen）

©2023 EXEO Group, Inc. All Rights Reserved.

31

6． Topics©2023 EXEO Group, Inc. All Rights Reserved.

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（１） Expanded Neutral Hosting
PT dhost, a group company and overseas subsidiary headquartered inIndonesia, has surpassed 1,500 indoor communication infrastructure sharing
sites in the country. Becomes one of the largest leading companies.

Construction photographInstallation equipment
Shopping mall exterior

Indoor Antennas©2023 EXEO Group, Inc. All Rights Reserved.

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（２） Initiatives for DfMA construction
Develop "Design for Manufacture and Assembly (DfMA)," a next-generation
construction method, in overseas operations.
Winner, an overseas subsidiary, is officially certified as "PREFAB MEP
SPECIALIST" by the Singapore government
DESIGN©2023 EXEO Group, Inc. All Rights Reserved.

MANUFACTURING

DELIVERYINSTALLATION

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（３）Breaking a World Record at the National Skill Olympic Qualifiers
Set a new world record in the "Optical Connection Speed Race" at the
Qualifiers for The 61st International Skills Competition.

Employees Murata and 5 others
qualified for the final round of the 61st
National Skill Olympic to be held in
Aichi Prefecture in November this year.

©2023 EXEO Group, Inc. All Rights Reserved.

35

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.

©2023 EXEO Group, Inc. All Rights Reserved.

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