Results for the Six Months Ended
September 30, 2015
November 2015

Building a better,brighter future together
Total ICT Solutions:Contributing to the Realization of a Brighter
Future by Bringing People Together andForming Connections with Society

URL: http://www.exeo.co.jp/overseas/index.html

Results for the Six Months Ended September 30, 2015

Contents･･･ 2(9) SYSTEM-SOLUTIONS･･･ 20(1) Performance Figures･･･ 3(10) Improved Productivity･･･ 25(2) Orders Received･･･ 4(3) Net Sales･･･ 5(4) Operating Income･･･ 6

3. Raising Shareholders’ Value･･･ 27(5) Cash Flow･･･ 8(1) Payment of Dividends･･･ 28

1. Overview of FY15 Interim Results

2. Expectations for the Rest of FY15(1) Performance Figures･･･ 9･･･ 10(2) Medium-Term Forecast for Projects･･･ 12(3) Investment Trends ofMajor Telecom Carriers･･･ 13(4) FY20 Outlook･･･ 14(5) NTT Group (Access/Network)･･･ 16(6) NTT Group (Mobile)･･･ 17(7) Non-NTT Telecom Engineering･･･ 18(8) Environmental and Social Infrastructure･･･ 19‐1‐

Results for the Six Months Ended September 30, 2015

1. Overview of FY15 Interim Results(1) Performance Figures(2) Orders Received(3) Net Sales(4) Operating Income(5) Cash Flow

‐2‐

Results for the Six Months Ended September 30, 2015

1. Overview of FY15 Interim Results(1) Performance Figures◆ Orders received, sales down YOY on lower construction orders for carriers◆ Lower sales impact income considerably despite continued measures to boost efficiency■ Overview of FY15 interim results (consolidated)
FY14InterimactualA

FY15Interim
plan
B

(¥bn)

FY15
InterimactualC

YOY

Plan
accuracy
C/B

C/A

Orders received

149.3

150.0

140.8

94%

94%

Net sales

127.1

124.0

107.7

85%

87%

82%

83%

8.5

98%

95%

4.8

64%

69%

4.7

62%

68%

2.9

64%

75%

Gross profit
SG&A expenses
Operating income
Ordinary income
Net income(12.8%)(12.9%)

16.2(6.8%)(12.4%)

16.0(7.3%)

8.6(5.9%)(7.9%)

9.0(5.6%)

7.5(6.0%)(4.5%)

7.0(5.6%)

7.6(3.6%)(4.4%)

7.0(3.1%)

4.5

13.3(2.7%)

3.9

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

‐3‐

Results for the Six Months Ended September 30, 2015

1. Overview of FY15 Interim Results(2) Orders Received◆ Falling non-NTT telecom orders causes overall YOY decline despite steady performance in NTT Group work
◆ Despite strong NTT Group orders, lower construction for NCCs brings results short of plan
■ YOY (consolidated)■ Compared to plan (consolidated)(¥bn)

304.2 〇 Network
NTT Group+0.4○ Electricity facility
projects● Waste-treatment
plants150.0 ● Public works orders

140.8● NCCs● Public works orders-8.5
FY14 Interim

310.0

Environmental
and Social
Infrastructure-2.3
Non-NTT
telecom-10.7
SYSTEMSOLUTIONS-4.4● NCCsSYSTEMSOLUTIONS
+3.7
○ ＳI

● Electricity facility
projects● Civil engineering

NTT Group+8.0

Environmental
and Social
Infrastructure-1.1

Non-NTT
telecom
-11.6

149.3

310.0

310.0

○ Access○ Network○ Mobile

FY15 Interim

FY15 Interim Plan

○Reason for increase ●Reason for decrease

-9.2

●NI
●SI

140.8

FY15 Interim

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

‐4‐

Results for the Six Months Ended September 30, 2015

1. Overview of FY15 Interim Results(3) Net Sales◆ SYSTEM-SOLUTIONS rise offset by falls in other segments, leading to YOY drop
◆ Lower NCC orders, extended NTT construction among factors causing sales to fall short of plan
■ YOY (consolidated)■ Compared to plan (consolidated)(¥bn)● Access● Network● Mobile

300.9

NTT-G
-10.5

305.0 ●Access● Electricity facility
projects● Waste-treatment
plants

305.0●Mobile

NTT-G
-4.4

Environmental
and Social
Infrastructure
-3.6

127.1

Non-NTT
telecom-8.6● NCCs● Public works orders

FY14 Interim

-19.4

124.0

SYSTEMSOLUTIONS
+3.2

305.0

● Electricity facility
projects● Waste-treatment
plantsEnvironmental
and Social
Infrastructure-2.9

Non-NTT
telecom-7.2

107.7● Public works orders

SYSTEMSOLUTIONS
-2.0

107.7

● NI

〇 ＳＩ

FY15 Interim

FY15 Interim Plan

○Reason for increase ●Reason for decrease-16.3

FY15 Interim

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

‐5‐

Results for the Six Months Ended September 30, 2015

1. Overview of FY15 Interim Results(4) Operating Income◆ Sales drop impacts income considerably, causing falls YOY and against plan
■ YOY (consolidated)■ Compared to plan (consolidated)
(¥bn)

21.0

21.0

21.0
● Sales mix〇 Cost reduction, etc.

18.3
Down due todecrease in sales-2.4

Down due todecrease in sales-2.1● Sales mix, etc.

Others
-0.7

7.5

Others-0.1

Improved
efficiency
+0.4

7.0

4.8

4.8

-2.2

-2.7
FY14 Interim

FY15 Interim

FY15 Interim Plan

○Reason for increase ●Reason for decrease

FY15 Interim

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

‐6‐

Results for the Six Months Ended September 30, 2015

1. Overview of FY15 Interim Results
Reference: Trends in Group company profitability◆ Continued high level of profits in Group companies despite falling profitability for Exeo alone■ Trends in operating profits over the past five years (consolidated/non-consolidated)(Ratio of consolidated to
non-consolidated projects)

(0.9)

(1.7)

2.3

(1.7)

2.9
2.3

(1.6)

(2.1)

2.9
2.9

(¥bn)

2.9
Group companies
Exeo alone

2.6
-0.1

3.3

4.3

4.6
2.2

1.6
FY11 Interim

FY12 Interim

FY13 Interim

FY14 Interim

FY15 Interim

Notes: Ratio of consolidated to non-consolidated projects=profits from consolidated projects÷profits from non-consolidated projects. All amounts less than ¥100m are disregarded.

‐7‐

Results for the Six Months Ended September 30, 2015

1. Overview of FY15 Interim Results(5) Cash Flow
◆ Stable cash flow
■ Cash flow (consolidated)

(¥bn)

FY12

FY13

FY14
InterimFull

FY15InterimCash at beginning of FY

12.3

14.6

16.2

16.2

24.2

Operating activities

7.1

9.8

23.1

23.1

9.9

Investing activities

-2.1

-7.4

-1.3

-2.8

-3.3

Financing activities

-3.0

-0.9

-10.6

-12.3

-5.0

Cash at end of FY

14.6

16.2

27.3

24.2

25.8

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

‐8‐

Results for the Six Months Ended September 30, 2015

2. Expectations for the Rest of FY15(1) Performance Figures(2) Medium-Term Forecast for Projects(3) Investment Trends of Major Telecom Carriers(4) FY20 Outlook(5) NTT Group (Access/Network)(6) NTT Group (Mobile)(7) Non-NTT Telecom Engineering(8) Environmental and Social Infrastructure(9) SYSTEM-SOLUTIONS(10) Improved Productivity‐9 ‐Results for the Six Months Ended September 30, 2015

2. Expectations for the Rest of FY15(1) Performance Figures◆ Continued efforts to exceed plan during the year
■ Plans for FY15 (consolidated)

(¥bn)

FY14
Interim
A

FY15
Full
B

Interim
C

Plan
D

YOY
D/B

Orders received

149.3

301.4

140.8

310.0

103%

Net sales

127.1

300.9

107.7

305.0

101%

Gross profit(12.8%)
16.2(6.8%)
8.6(5.9%)
7.5(6.0%)
7.6(3.6%)
4.5(11.9%)
35.7(5.8%)
17.3(6.1%)
18.3(6.2%)
18.5(4.1%)
12.2(12.4%)
13.3(7.9%)
8.5(4.5%)
4.8(4.4%)
4.7(2.7%)
2.9(12.7%)
38.6(5.8%)
17.6(6.9%)
21.0(6.9%)
21.0(4.3%)
13.2

SG&A expenses
Operating income
Ordinary income
Net income

108%
101%
114%
113%
108%

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

‐ 10‐

Results for the Six Months Ended September 30, 2015

2. Expectations for the Rest of FY15
Reference: Construction work carried over from 2Q of FY15
◆ Work carried over into next fiscal half at all-time high■ Trends for value of work carried over into second half of fiscal year (from 2Q to 3Q) (consolidated)
(¥bn)

138.6
131.7

133.1
125.8

107.7

FY11 Interim

FY12 Interim

FY13 Interim

FY14 Interim

FY15 Interim

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

‐ 11‐

Results for the Six Months Ended September 30, 2015

2. Expectations for the Rest of FY15(2) Medium-Term Forecast for Projects◆ Decrease in NTT fixed-line absorbed by other projects; increased earnings
and profits to continue in the medium term・・・ New core businesses in the future(Areas in which Kyowa Exeo can demonstrate its strengths)

SYSTEM-SOLUTIONS (NI, SI)
Environmental and Social Infrastructure

・・・ Biggest business opportunities(Greater Tokyo area redevelopment, Tokyo Olympics, replacing aging
infrastructure, elimination of above-ground wiring, etc.)

Non-NTT telecom
Net sales

・・・ Continuing growth centered on NCCs

・・・ Downward trend likely to continue in the

NTT Group (Access/Network)

immediate term
・・・ Continuing shift to higher standards

NTT Group (Mobile)
FY12

FY13

FY14

FY15
‐ 12 ‐

Results for the Six Months Ended September 30, 2015

2. Expectations for the Rest of FY15(3) Investment Trends of Major Telecom Carriers■ NTT DoCoMo■ NTT East/West
784.1

754.9

726.8

690.7
626.6

304.0

291.0

753.7

590.0

387.8

224.1
263.0

240.0

703.1

(¥bn)

661.8

406.7

600.0

353.0

218.9

205.0

136.9

92.3
FY11
11

FY12
12

FY13
13

FY14
14計画

FY15
FY15
14-2Q
14-2Q
plan
2Q
うち光関連
Optical fiber

FY11
11

FY12
12

FY14
14計画

合計

779.4
571.8

304.2

FY13
13

FY15
FY15
14-2Q
15-2Q
plan
2Q
うちＬＴＥ関連
LTE-related■ ＳｏｆｔＢａｎｋ■ ＫＤＤＩ

421.6

219.5

576.2

608.0

467.0

338.2

500.7

344.3

747.4

600.0

621.1

645.4
489.8

385.2
315.0

390.0

422.7

255.1

193.2
131.2

FY11
11

FY12
12

FY13
13

FY14
14計画

合計

FY15
14-2Q
plan

FY15
15-2Q
2Q
うち移動
Mobile

FY11
11年度

‐13 ‐

FY15
15-2Q
2Q
Mobile
全体
うち移動(Source: Figures released by the telecommunications carriers)
FY12
12

FY13
13

FY14
14

FY15
15計画
plan

Results for the Six Months Ended September 30, 2015

2. Expectations for the Rest of FY15(4) FY20 Outlook◆ To become a ¥400 billion company in FY20
◆ To promote reconstruction of the business portfolio and grow thesolutions business into a second pillar
FY15

FY20

15%

25%

¥305.0bn

25%
60%

Expansion of sales and businessdomains by development into
new domains¥400.0bn

50%

25%

Telecom carriers business

Maintain level by expansion of domain despite decrease in investment

Urban infrastructure business Expansion of business chances in 2020 with “national resilience” plan, etc.
Solutions business

Development into new domains (new energy, etc.)
Expansion of software development‐ 14 ‐

Results for the Six Months Ended September 30, 2015

2. Expectations for the Rest of FY15(4) FY20 Outlook◆ 基本方針Increase corporate value through sustained expansion of sales/creation of■
profits and improved capital efficiency■ Achievements and targets

FY14
Actual

FY15
Plan

FY20
TargetNet sales\300.9bn\305.0bn\400.0bn

Operating income\18.3bn\21.0bn\30.0bn

Operating income
margin

6.1%

6.9%

7.5%

ROE

8.7%

8.9%

10.0%

EPS

¥123

¥136

¥200

ROE: Return on equity

EPS: Earnings per share‐15 ‐Results for the Six Months Ended September 30, 2015

2. Expectations for the Rest of FY15(5) NTT Group (Access/Network)◆ Continuing downward trend for fixed-line network◆ Profits secured by streamlining business■ Net sales of NTT Group(fixed-line network, consolidated)■ NTT facilities management (fixed-line related)【Net sales (consolidated)】
（¥bn）

2Q

126.0

Full
year
130.4

(¥bn)

5

0

127.2

FY11
113.1
104.0

FY12

58.0

Ikeno Tsuken
54.1

50.7

FY14

FY15 Plan■ Consolidation of subsidiary access and network companies
WAKO ENGINEERING

53.5

FY13

July 2015–
Consolidation

EXEO TECH

Improved profitability by streamlining business

44.8

Expand business domains (Solutions, mobile business, etc.)

Kyowa Synax
DAITOH INDUSTRY

0

FY11

FY12

FY13

FY14

FY15
Plan

Shinkyo Engineering

July 2015–
Consolidation

Exeo Network

Improved profitability by streamlining business
Nationwide operational adjustments‐ 16 ‐

Results for the Six Months Ended September 30, 2015

2. Expectations for the Rest of FY15(6) NTT Group (Mobile)◆ LTE-Advanced construction work at full pace
◆ Downgrading of project scale, noticeable trend toward concentration in large cities■ Net sales of NTT Group(mobile network, consolidated)■ NTT DoCoMo network development

FY14
2Q

Full
year

(¥bn)

FY15

ＬＴＥ

FY16

FY17

FY20

ＬＴＥ-Ａｄｖａｎｃｅｄ

５Ｇ

50

49.6
47.0

46.3

１Gbps

42.9
40.1

Speed
22.5

19.7

Extended
ＣＡ

3.5ＧＨｚband

Extended
ＭＩＭＯ,
etc.

ＭＩＭＯ

15.6

Technology
0300Mbps
225Mbps
ＣＡ

24.4

19.5

370Mbps

ＣＡ (Career aggregation)
Add-on cell (3.5 GHｚ)

FY11

FY12

FY13

FY14

FY15
Plan

700MHzNote: Created by the Company based on NTT DoCoMo presentation material.

‐ 17 ‐

Results for the Six Months Ended September 30, 2015

2. Expectations for the Rest of FY15(7) Non-NTT Telecom Engineering◆ Construction orders down amid plan to gain NCC construction market share◆ Public project targets narrowed down and proactive development of business■ Non-NTT telecom engineering net sales(consolidated)
・Platinum band service
Full
year

2Q

・Measures for mobile
phone dead zones
between subway stations

77.2
56.1

63.8

69.1

■ Government-sector telecom projects
Trends in orders received (consolidated)
(¥bn)

(¥bn)

70.0

10
5
0

FY11

26.0

FY11

23.0

FY12

27.9

FY13

27.4

FY14

FY11

FY15
Plan

FY14

FY15 Plan◇Main targets
・Fire-fighting/disaster prevention wireless・“National resilience” plan(CCTV, road telecommunications,etc.)■ Expansion of orders received at NCCs

Full
year

FY12

FY13

18.8

（NCC restated）
2Q

FY12

FY13

FY14

Construction (Mobile)
Exeo
Construction (Access)A company
Construction (Network)
B company

FY15
Plan

Construction,
Operation, andmaintenance
EXEO

Operation and maintenance
C company‐ 18 ‐

Results for the Six Months Ended September 30, 2015

2. Expectations for the Rest of FY15(8) Environmental and Social Infrastructure◆ Redevelopment of Tokyo metropolitan area and elimination of power poles at full speed in readinessfor Tokyo Olympics◆ Steady expansion in operation and maintenance management of waste-treatment plants■ Environmental and Social Infrastructure
net sales (consolidated)■ Operation and maintenance management ofwaste-treatment plants【Net sales (consolidated)】
（¥bn）

2

(¥bn)

Full
year

2Q

44.0

40

0

36.5
31.7

FY12

FY11

FY13

FY14

FY15 Plan■ Redevelopment of Tokyo metropolitan area

33.1

Nihonbashi
Shinjuku
OtemachiOlympic facilities
ShibuyaToyosuShinagawa

26.3
20

12.7
13.6

9.7

9.1

Major recent redevelopment-related orders (electricity facilities, etc.)

7.8
0

FY11

FY12

FY13

FY14

FY15
Plan

‐ 19 ‐

Ariake district

Nanpeidai,

Urban revitalization(housing complex)

Shibuya projectproject

Approx. ¥2.1bn

Approx. ¥1.6bn

Approx. ¥0.7bn

July 2015

Sept. 2015

Aug. 2015

Results for the Six Months Ended September 30, 2015

2. Expectations for the Rest of FY15(9) SYSTEM-SOLUTIONS◆ Making full use of high technological strength and plentiful human resources to expand SI business◆ New solutions to become new business pillar■ SYSTEM-SOLUTIONS net sales(consolidated)■ SI (systems integration) business
Further business expansion with high ratings from
customers and an SE system of 1,500 persons
Top-ranking partners from among main customers

40

2Q

(¥bn)

Full
year

40.0

NTT DATANTT COMWARE Premium excellent partner
NEC

Platinum

Note: Converged Network Division

34.5
32.5

32.4

Core business partner■ NI (network integration) business
Creation of a new business pillar through technicalintegration based on network construction technology suchas LAN/WAN, etc.

24.4
20

13.2

15.0

13.8

New solutions as a new pillar
New energy: Smart meters, EMS

11.8

10.1

Geo solutions: EXTravel, Daigo Temple sightseeing guide
Cloud security: Thin client, local medical coordination

0

FY11

FY12

FY13

FY14

Global, other: SE Asia airports ICT, Okinawa promotion

FY15
Plan

‐ 20 ‐

Results for the Six Months Ended September 30, 2015

2. Expectations for the Rest of FY15
Reference: Performance and future initiatives of new solutions and global business
3.5
3
2.5
2
1.5
1
0.5
0

¥1.4bn¥2.0bnNew energy
field

14

・Regional power companies
・Power Producers andSuppliers (PPSs)
・Smart meter

15

・FTTH order from PLDT・Trial launched for

Global,Indonesian FTTH projectother・ Okinawa

987¥8.5bnOrdersreceived¥2.5bn
¥800m
14

15

・Start of cloud service for new electric power companies
・New service for electric utilities: smart-meter systemconstruction to begin in 2016

Solutions field・ EXTravel

・EXTravel: following Nikko(Outdoors, indoors,

City, orders from threeeducational, tourist

local governments

・International

6・ Support projects,

5

etc.

3

・ EXRescue (Local

content delivery begins in2

governments,

Ebina, Kanagawa

1

companies, etc.)

4¥4.0bn¥3.0bn¥1.7bn

14

15

Cloud/security
field・ Thin client/virtual field

14

15

・Education/public works field (school networks, local government

・“Ebina Active Navi”

spot versions)

0
3.5
3
2.5
2
1.5
1
0.5
0

3.5
3
2.5
2
1.5
1
0.5
0

・ Security infrastructure

・Educational apps

3.5
3
2.5
2
1.5
1
0.5
0

¥1.0bn
¥100m
14

15

servers, etc.)
・System for monitoring reservoir water levels undergoing trials‐ 21 ‐

Results for the Six Months Ended September 30, 2015

2. Expectations for the Rest of FY15
Reference: Cloud service for new electric power companies
Cloud service for new electric power companies

Tentative orders received

Management of customers

Power generationfrom 8 companies

and billingbusinesses
Power supply
procurement

FY20 Target
5 million houses(30% share)
5 years total orders 1.7billion yen

Fee calculation

Japan Electric

Supply and demandPower Exchange

management
Power trading

External collaboration
Submission of supply
and demand plan

Service provision
Organization promoting
wide-area operations

Power retailers
Retail contracts
Individual customers

Individual customers‐22 ‐Corporate customers

Corporate customers

Results for the Six Months Ended September 30, 2015

2. Expectations for the Rest of FY15
Reference ： The High-Accuracy Positioning Society Project□Making Japan a society with world-leading
highly accurate positioning systems to ensure
the success of the 2020 Tokyo Olympics

High-Accuracy Positioning Society Project (MLIT)
Real-world testing of seamless positioning service ininterior and exterior areas around Tokyo Station□ Participating in real-world testing for the

Secretariat : NTT DATA

Ministry of Land, Infrastructure, Transport, andLocation : Underground areas in Otemachi,
Marunouchi, Yurakucho

Tourism High-Accuracy Positioning Society

Schedule : Testing in Jan. 2016 for general

Project

publicExeo duties : Infrastructure building forinterior, exterior positioning devices

Defining the high-accuracy positioning
environment for interior and exterior locations:• Exterior: positioning with < 1 m precision

Potential Service Usage(able to pinpoint location on sidewalk)• Interior: positioning with < 1 m precision

UndergroundAt Airports

At Major Stations
Provide detailed

Above groundlocation and route
guidance todestination
whether user isinside or outdoors

Seamless movement to destination

Upon arrival at/departurefrom airport, install navigation
app on user devices including
multilingual tourism guidance

Seamless, pinpoint navigation below and above ground guides the

Tourist spots
Multilingual
guidance matchinguser location

user from a subway turnstile to the bus stop at street level.

Event venues

Lodging

Guidance to assigned
seating at sports arenas

Summarized from “On the High-Accuracy Positioning Society Project,” published by the National Land
Information Division, National and Regional Policy Bureau, MLIT

‐23 ‐Results for the Six Months Ended September 30, 2015

2. Expectations for the Rest of FY15
Reference: Global business initiatives■ MG Exeo sales trends（¥100m）

1peso≒¥2.7
10
5
0

FY10

FY11

FY12

FY13

FY14

FY15 Plan

MG Exeo (Philippines) as a basefor development across SE Asia
Education of ICT specialists in the Philippines→ spread to other SE Asian countries

Philippines
Comprehensive service project in two Manila
suburbs¥600m/yr for three years (May 2014–April 2017)

Trial implementation of Indonesian
FTTH project (from Oct. 2015)

FTTH from PLDT（￥170ｍ）

Construction of ICT in airports in the Philippines
Terrestrial digital construction(Adoption of Japanese system)‐ 24 ‐

Targeting SE Asian ODA projects
・Airport ICT・Industrial complex ICT・Data centers ICT
etc.
Results for the Six Months Ended September 30, 2015

2. Expectations for the Rest of FY15(10) Improved Productivity◆ FY14 targets achieved◆ Continued measures to improve profits

Improvement■ Enhanced profitability through cost reductions
ＦＹ

2012

2013

Aims

¥1.0bn¥1.5bn¥1.5bn(cumulative ¥2.0bn)(cumulative ¥2.0bn)

2015¥1.0bn(cumulative ¥5.0bn)(cumulative ¥6.0bn)¥2.0bn¥2.0bn¥2.0bn¥0.4bn(cumulative ¥3.0bn)(cumulative ¥5.0bn)(cumulative ¥7.0bn)(cumulative ¥7.4bn)

Results

2014

Note: Amount of improvement represents cost reductions relative to FY10.

■ Recent principal measures
Area

Measures◇ Cross-departmental systems integration
through business improvement project◇Review of access, network, and engineering construction systems
Functional◇Expansion of shared company work consignments

integration◇Group-wide unification of audits, MS tasks◇Reorganization of Group access companies in Kanto area

◇Merger of major subsidiaries (WAKO and
Ikeno)◇Merger of subsidiary network companies◇Merger of subsidiary security companies
Reorganizationof Group
companies

Consolidation ofbases◇Merger of subsidiary access companies in Kansai/Chugoku regions◇Merger of subsidiary mobile companies◇Merger of subsidiary access companies in Tohoku region◇Sendai General Engineering Center (9 bases → 1) ◇Kagawa Technical Center (5 bases → 1)
◇Ishioka General Technical Center (4 bases → 1)

◇Hyogo General Technical Center◇Koshin branches (5 bases → 1)

Resource◇Resource shift to mobile/solutions area (approx. 240 people)

sharing◇Group-wide cross-sectional projects (mobile, 700 MHz TV reception measures, EV charging, etc.)‐ 25 ‐

Results for the Six Months Ended September 30, 2015

2. Expectations for the Rest of FY15
Reference: Reorganization of Group companies◆ Accelerated reorganization of Group companies aimed at improved streamlining
and optimization of resources■ Trends in number of subsidiaries (excluding WAKO ENGINEERING,
Ikeno Tsuken, and Daiwa Densetsu)

34 companies

33 companies
29 companies

18◇ Liquidation of
WAKO subsidiary(one company)◇ Merger of
Kansai/Chugoku
access subsidiaries

17◇Merger of
security
companies

11◇Merger of mobile
subsidiaries◇ Merger of Tohoku
access subsidiaries◇ AID becomesa subsidiary

5

5

FY12

FY13

‐ 26 ‐

Small-scalecompanies

13◇ Liquidation of
WAKO subsidiary(one company)

11

27 companies
12

July 20159◇ Merger of network
subsidiaries

Companies withsales of ¥5.0bn

7

7

8

FY14

FY15 Plan

Companies withsales of ¥10.0bn

Results for the Six Months Ended September 30, 2015

3. Raising Shareholders’ Value‐27 ‐Results for the Six Months Ended September 30, 2015

3. Raising Shareholders’ Value(1) Payment of Dividends◆ Continuing proactive payment of dividends◆ Toward sustained improvement in EPS, high ROE■ Total shareholder return■ Dividend history (per share)(Total dividends + total acquisition of treasury stock)

32

20

FY11

22

FY12

Total dividends
Total acquisition of treasury stock

\32

24

FY13

FY14

FY15 Plan■ Acquisition of treasury stock

5.0

5.3

5.4

FY11

FY12

FY13

147
109

3.0

3.0

（127）

9.6％

FY12

FY13

FY15 Plan

FY14

FY15 Plan

FY11

‐28 ‐

123

\136

11.6％

74

（9.9％）

7.6％
FY11

FY14

ＲＯＥ

\5.0bn
3.0

6.1■ EPS/ROE
ＥＰＳ

2.9\8.1bn

FY12

FY13

8.7％

8.9％

FY14

FY15 Plan

Results for the Six Months Ended September 30, 2015

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 JAPANhttp://www.exeo.co.jp/overseas/index.html
TEL: (81)3-5778-1073
FAX: (81)3-5778-1228

A variety of IR materials is available for
consultation on our company website.

‐29 ‐Results for the Six Months Ended September 30, 2015