FY19 Asia IR Presentation Material (Telephone Conference) March - PowerPoint PPT Presentation

FY19 Asia IR Presentation Material (Telephone Conference) March 2020 Building a better, brighter future together Total ICT Solutions: Contributing to the Realization of a Brighter Future by Bringing People Together and Forming Connections with Society

Contents ・・・ 1. About Us (8) Urban Infrastructure 21 ・・・ ・・・ (1) Corporate Profile 2 (9) System-Solutions 22 ・・・ (2) Company History 3 ・・・ 4. Our M&A Strategy (3) Performance Highlights 4 ・・・ ・・・ (4) Segment Overviews 5 (1) Development Direction by Business Segment 24 ・・・ (5) Group Structure and Business Bases 9 ・・・ 5. Intitatives for ESG and SDGs (6) Public evaluation 10 ・・・ (1) ESG Initiatives 25 2. Medium-term management plan ・・・ (2) SDGs Initiatives 26 ・・・ (1) Medium-term vision 11 ・・・ (2) Basic Policies 11 6. Raising Shareholders’ Value ・・・ ・・・ (3) Performance Target for FY20 11 (1) Shareholder Return Policy 27 ・・・ ・・・ (4) Objective and Growth Picture 12 (2) Plan for shareholder returns for FY19, etc. 28 3. Overview of FY19 Q3 Earnings Results 7. Topics (1) Our company Employee Wins Gold Medal ・・・ ・・・ (1) Performance Figures 13 29 at Skills Competition (2) Our company selected as "Nadeshiko ・・・ ・・・ (2) Orders Received 14 30 Brand" ・・・ (3) Net Sales 15 ・・・ (4) Operating Income 16 ・・・ (5) NTT Group (Access/Network) 17 ・・・ (6) NTT Group (Mobile) 18 ・・・ (7) NCCs 19 － 1 －

1. About Us (1) Corporate Profile Established May 17, 1954 Paid-in capital ¥6,888 million Tokyo Stock Exchange (First Section) Securities Code: 1951 Stock listing Unit of trading: 100 Total common stock issued: 117,812,419 shares Chairman: Fuminori Kozono Representatives President and CEO:Tetsuya Funabashi Consolidated net sales ¥423.7 billion (FY 2018) Number of employees Consolidated total: 13,714 (as of Sep. 31, 2019) Head office 3-29-20 Shibuya, Shibuya-ku, Tokyo 150-0002, Japan Branch offices: 13 Number of business offices Sales offices: 21 Consolidated 90 subsidiaries Fiscal year-end March 31 － 2 －

1. About Us (2) Company History Net Sales 2001: Merger with Showa Technos (consolidated) 2004: Daiwa Densetsu made a Group company (¥bn) Wako Engineering made a Group company 500 2005: KANAC made a Group company 2010: Ikeno Tsuuken made a Group company 450 2011: ICOMSYSTECH made a Group company Wako, Daiwa Group, and Ikeno Tsuuken became 2006: Mobile number portability launched wholly owned subsidiaries 400 2014: Advanced Information Design made a Group company 2018 : C-Cube, Seibu Electric Industry and Nippon Dentsu 1998: Entered the NI business 350 made a Group company KOHKEN made a Group company 300 2019 : DeClout & KDT & SUN PLANNING SYSTEMS & Winner Engineering & CPU made a Group company 250 2010: LTE service launched 1986: Entered the 200 environment business 2001: Optical access service launched 1982: Entered the 1997: Japan’s telecom network fully digitized 150 SI business Sales (on a consolidated basis from 1992) 1972: Listed on Tokyo Stock 1991: Changed company name to Exchange (First Section) 100 KYOWA EXEO CORPORATION 1954: Company established 1985: Telecom liberalization; NTT goes private 50 1952: Nippon Telegraph and Telephone 1979: Nationwide automation for telephone line switching completed Public Corporation launched 0 1954 1960 1970 1980 1990 2000 2010 2020 － 3 －

1. About Us (3) Performance Highlights Net Sales Orders Received (¥bn) (¥bn) 495.0 495.0 424.3 423.7 301.4 300.4 324.1 325.0 300.9 287.4 298.8 312.6 plan plan Operating Income Net income attributable EPS (¥bn) (¥) (¥bn) 32.0 31.7 to owners of parent 40.2 25.6 20.8 18.3 18.4 21.8 17.9 13.7 12.2 12.1 plan plan plan － 4 －

1. About Us (4) Segment Overviews Railroad Waste-treatment communications plant Constructing electrical and air-conditioning facilities Mobile base stations Sensor networks FTTH (social infrastructure) Agriculture Optical fiber ICT Mega solar power Networks for SOA, billing station CATV telecommunication Cloud/ Solar power offices data center generators HEMS, Mobile base smart community stations Network/servers, Civil engineering CCTV and Optical fiber Wi-Fi, security (reduction of above-street wiring) digital signage connected offices Net Sales Segment System Solutions FY18 (¥ bn) 203.6 NTT Group 17.3% Telecom carriers ENGINEERING Urban infrastructure 38.0 NCCs NTT Group -SOLUTIONS 48.1% 108.6 Urban infrastructure 25.6% 73.4 System-Solutions 423.7 Total NCCs 9.0% － 5 －

1. About Us (4) Segment Overviews — Telecom carriers ◆ Kyowa Exeo’s core business, nurtured since the company was founded more than 60 years ago ・ NTT Group We build and maintain telecommunications facilities for NTT Group companies. ・ NCCs We design, construct, and maintain telecommunications facilities for KDDI, Softbank, Rakuten. Mobile phone base station Home Networking In-station facilities of telecommunications carriers Communications tunnels Home Communications cables (optical fiber ) (underground conduits, service tunnels) 【 Access engineering 】 【 Network engineering 】 【 Mobile engineering 】 Total 57.1% NTT Group 48.1% We install switchers and We design, construct, 53.5% We lay optical fiber and test frequencies, cable between phone routers/servers at and maintain mobile exchanges and homes and exchanges and construct base stations and offices and provide in-building mobile and maintain related construction and communication 9.0% NCCs electrical facilities. maintenance services. systems. － 6 －

1. About Us (4) Segment Overviews — Urban infrastructure ◆ Using the electrical and civil engineering skills developed in our telecommunications infrastructure business to build a more convenient society ・ Building and maintaining telecommunications facilities for local governments and cable TV, railway, and other companies ・ Solar power generators, biomass boilers, and other renewable energy technologies ・ Constructing electrical and air-conditioning facilities for office buildings, apartments, and data centers ・ Eliminating utility poles by laying electrical and telecommunications cable in underground conduits ・ Designing, constructing, operating, and maintaining water and waste-treatment plants 【 Constructing electrical and air- 【 Road telecommunications construction 】 【 Renewable energy 】 conditioning facilities 】 Mega solar power station Constructing electrical facilities 【 Reduction of above-street wiring 】 【 Water- and waste-treatment plants 】 Reduction of above-street wiring Waste-treatment plant (before) (after) 25.6% － 7 －

1. About Us (4) Segment Overviews — System Solutions ◆ Using information and communications technology to provide total solutions in the NI and SI fields ・ Network Integration (NI) Offering network solution services covering servers, wireless networks, security, cloud computing, imaging, EMS , and sensors ・ System Integration (SI) Provision of large-scale entrusted development for the public sector, telecommunications, manufacturing, and the financial industry and provision of a solution to business process reform and operation support ・ Overseas projects Construction and maintenance of overseas telecommunications infrastructure, provision of network solutions services 【 Network integration (NI) 】 【 System integration (SI) 】 【 Overseas projects 】 17.3% Customer service center Seminars to discuss examples of Access works in the system architectures for businesses Philippines － 8 －

1. About Us (5) Group Structure and Business Bases ■ Group Structure (as of March 1, 2020) ■ Business Bases KYOWA EXEO CORPORATION Net Sales: ¥279.0 billion （ Non-consolidated figures ） ■ Domestic bases ● Bases of Five Major Consolidated Subsidiaries Major Consolidated Subsidiaries (5 companies) ▲ Bases of Other Consolidated Subsidiaries Seibu Electric Industry C-Cube Nippon Dentsu Net Sales: ¥64.0billion Net Sales: ¥56.0 billion Net Sales: ¥34.0 billion Exeo Tech Daiwa Densetsu Net Sales: ¥22.6billion Net Sales: ¥16.4 billion ■ ▲ Other Consolidated Subsidiaries （ 85 companies ） 【 Overseas Bases 】 Philippines Shinyei Tsushin, Suncrex, Ecos Hokuei, Sankyo-Techno, KANAC, Access ■ Thailand K. Technos, Sigmax Singapore Networks Exeo Mobile, Toho Communications, Yuai Tuken, ■ ■ ▲ ● Kyoei Densetsu Kogyo, Denseisya, KDT &Mobile ■ ■ ■ Civil Exeo Infra, Infratechno ■ ▲ ■ ▲ ▲ ■ ■ ▲ ■ ICOMSYSTECH, ACCRESCO, AID, WHERE ● ■ ■ ■ IT ● ■ ■ ● SUN PLANNING SYSTEMS, CPU ▲ ■ ■ ▲ ■ ■ ■ ■ ■ Overseas ■ MG EXEO , EXEO ASIA , EXEO GLOBAL , LAE , DeClout, ■ ■ ● ▲ ■ Winner Engineering projects ■ ■ ▲ KYOWA SECURITY SYSTEM, Kyokuyoh, ■ Other Shinwa Seisakusyo, Exeo Butsuryuu Service, Exeo Business, ASAHI DENWA KOGYO, KOHKEN （ Note 1 ） The net sales of each company are the actual results for the fiscal year ended March 2019. （ Note 2 ） C-Cube, Seibu Electric Industry, and Nippon Dentsu were integrated into group companies in October, but annual net sales were stated for each of the three companies. － 9 －