Corporate Profile. July Building a better, URL: Corporate Profile (July 2017)

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1 Corporate Profile July 2017 Building a better, brighter future future together together Total ICT Solutions: Contributing Total ICT Solutions: to the Realization of a Brighter Future Contributing by Bringing to the People Realization Together of a Brighter and Forming Future by Connections Bringing People with Society Together and Forming Connections with Society URL:

2 Contents 1. About Us 2 2. Stock Information 12-1-

3 (1) Corporate Profile (as of July. 1, 2017) Established May 17, 1954 Paid-in capital Stock listing Representatives Net sales (FY 2016) Number of employees (as of March 31, 2017) Head office Number of business offices 6,888 million Tokyo Stock Exchange (First Section) Securities Code: 1951 Unit of trading: 100 Total common stock issued: 117,812,419 shares President: Fuminori Kozono Representative Director and Executive Operating Officer: Tsutomu Ota Consolidated figures: billion Non-consolidated figures: billion Parent company: 3,734 Consolidated subsidiaries: 4,340 Total: 8, Shibuya, Shibuya-ku, Tokyo , Japan Branch offices: 15 Sales offices: 16 Consolidated subsidiaries 28 Fiscal year-end March 31-2-

4 (2) Profile of President Fuminori Kozono Birthplace Kagoshima Prefecture (Kyushu) Education 1975 Graduated from the Department of Electrical Engineering, Faculty of Engineering, Career Kyushu University 1975 Joined NTT Corporation 1999 Head of NTT Fukushima Branch 2005 Senior Vice President, Nippon Telegraph and Telephone East Corporation (NTT East); Vice Managing Director, Corporate Business Headquarters 2007 Executive Vice President, NTT East; Vice Managing Director, Network Business Headquarters 2008 Senior Executive Vice President, NTT East; Managing Director, Network Business Headquarters President, NTT Vietnam Corporation 2009 Senior Executive Vice President, NTT East; Managing Director, Corporate Business Headquarters 2012 Vice President, KYOWA EXEO; Headquarters Chief, Business Solutions Headquarters 2013 President, KYOWA EXEO -3-

5 Net Sales 300 bn 200 bn (3) Company History 2001: Merger with Showa Technos 2004: Daiwa Densetsu made a Group company Wako Engineering made a Group company 2005: KANAC made a Group company 2010: Ikeno Tsuuken made a Group company 2011: ICOMSYSTECH made a Group company Wako, Daiwa Group, and Ikeno Tsuuken became wholly owned subsidiaries 2014: Advanced Information Design made a Group company 1998: Entered the NI business 2006: Mobile number portability launched 2010: LTE service launched 100 bn 1986: Entered the environment business 1982: Entered the 1972: Listed on Tokyo Stock SI business Exchange (First Section) 2001: Optical access service launched 1997: Japan s telecom network fully digitized Sales (on a consolidated basis from 1992) 1991: Changed company name to KYOWA EXEO CORPORATION 1954: Company established 1952: Nippon Telegraph and Telephone Public Corporation launched 1985: Telecom liberalization; NTT goes private 1979: Nationwide auto switching network completed

6 (4) Segment Overviews Mobile base stations Agriculture ICT Sensor networks (social infrastructure) Wastetreatment plant Railroad communications Constructing electrical and air-conditioning facilities Optical fiber FTTH Mega solar power station Cloud/ data center Mobile base stations SOA, billing Solar power generators Networks for telecommunication offices HEMS, smart community CATV CCTV and digital signage ENGINEERING -SOLUTIONS Segment Telecom carriers Optical fiber connected offices Net Sales FY16 NTT Group NCCs 23.3 Urban infrastructure 67.3 SYSTEM-SOLUTIONS 39.7 ( bn) Civil engineering (reduction of above-street wiring) Urban infrastructure 22.5% SYSTEM-SOLUTIONS 13.3% Network/servers, Wi-Fi, security 56.3% NTT Group Total NCCs 7.8% -5-

7 (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 NCCs (new common carriers), municipal offices, cable television companies, railway companies, and other customers. Mobile phone base station Home Networking In-station facilities of telecommunications carriers Home Communications cables (optical fiber) Communications tunnels (underground conduits, service tunnels) Access engineering Network engineering Mobile engineering Total 64.1% We lay optical fiber and cable between phone exchanges and homes and offices and provide construction and maintenance services. We install switchers and routers/servers at exchanges and construct and maintain related electrical facilities. -6- We design, construct, test frequencies, and maintain mobile base stations and in-building mobile communication systems. NCCs 7.8% 56.3% NTT Group

8 (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 Road telecommunications construction Renewable energy Mega solar power station Constructing electrical and air-conditioning facilities Constructing electrical facilities Reduction of above-street wiring (before) Reduction of above-street wiring (after) Water- and waste-treatment plants Waste-treatment plant 22.5% -7-

9 (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) Offering system solution services such as service-oriented architecture, billing, and telecommunications in finance and other fields Overseas projects Construction and maintenance of overseas telecommunications infrastructure, provision of network solutions services Network integration (NI) System integration (SI) Overseas projects 13.3% Customer service center Seminars to discuss examples of system architectures for businesses -8-

10 (4) Segment Overviews Group Structure and Business Bases Group Structure KYOWA EXEO CORPORATION Net Sales: billion(non-consolidated figures) Three Major Consolidated Subsidiaries Exeo Tech Corporation Net Sales: 19.6 billion Daiwa Densetsu Corporation Net Sales: 12.9 billion Business Bases Domestic bases Bases of Three Major Consolidated Subsidiaries Bases of Other Consolidated Subsidiaries 26 Other Consolidated Subsidiaries Shinyei Tsushin, Suncrex, FUJI DENSETSU, Access Ecos Hokuei, Sankyo-Techno, KANAC, K. Technos, Sigmax Civil Exeo Infra, Infratechno Networks Exeo Network Exeo Mobile, Toho Communications, Yuai Tuken, Mobile Kyoei Densetsu Kogyo, Denseisya ICOMSYSTECH, ACCRESCO IT Advanced Information Design KYOWA SECURITY SYSTEM, Kyokuyoh, Other Shinwa Seisakusyo, Exeo Butsuryuu Service, Exeo Business, ASAHI DENWA KOGYO, MG EXEO Notes : Sales by company are performance for year ended March 31, Overseas Bases Philippines Thailand

11 (5) Our Strengths Total process coverage (end-to-end process management) Planning and development Construction Operations and maintenance Optical-fiber networks Total solutions Next-generation networks (NGNs) Mobile (LTE LTE-Advanced) Reduction of above-street wiring NI solutions, SI solutions Renewable energy (solar power facilities), eco business Electrical equipment Home ICT, smart house National framework Multiple-carrier migration and migration compatibility -10-

12 (6) Governance System Corporate governance system General meeting of shareholders Board of Directors President Representative Director and Executive Operating Officer Fuminori Kozono Tsutomu Ota Nomination Committee Compensation Committee Board of Directors Directors President Board of Corporate Auditors Statutory Auditors Independent Auditor Director and Executive Operating Officer Director and Executive Operating Officer Director and Managing Operating Officer Yoshiaki Matsuzaka Noritsugu Totani Yasuo Otsubo Management Council Director and Managing Operating Officer Tomohiro Kurosawa Director and Managing Operating Officer Yuichi Koyama Operating officers and organizational heads Representatives of Group companies Business and administrative departments and branches Internal Control Committee CSR Committee Compliance Committee Director Director (Independent Director)* Director (Independent Director)* Yuki Sakuyama Kumiko Kitai Kazuteru Kanazawa Group companies Information Security Committee Standing Statutory Auditor Haruhiko Watanabe Risk Management Division Internal Audit Division Legal Office Credit Control Office Information Security Management Office -11- Corporate Lawyer Standing Statutory Auditor Statutory Auditor (Independent Auditor)* Statutory Auditor Yoshiharu Takizawa Kozo Meguro Haruhiko Yamada * Registered with the Tokyo Stock Exchange as independent officers.

13 2. Stock Information (1) Major Shareholders (as of March 31, 2017) Major shareholders Name Number of shares held (1,000 shares) Equity (%) Japan Trustee Services Bank, Ltd. (Trust Account) 6, The Master Trust Bank of Japan, Ltd. (Trust Account) 5, Japan Trustee Services Bank, Ltd. (Sumitomo Electric Industries, Ltd. Retirement Benefit Trust Account reentrusted by the Mitsui Sumitomo Trust & Banking Co., Ltd.) 5, Holding company for KYOWA EXEO enployees 4, Japan Trustee Services Bank, Ltd. (Trust Account 9) 2, Sumitomo Realty & Development Co., Ltd 2, SUMITOMO LIFE INSURANCE COMPANY 2, Japan Trustee Services Bank, Ltd. (Mitsui Sumitomo Trust & Banking Co., Ltd. Retirement Benefit Trust Account) 1, Japan Trustee Services Bank, Ltd. (Trust Account 5) 1, NORTHERN TRUST CO.(AVFC)RE NVI01 1, Distribution of shares by owner Treasury stock Individuals, others 14.14% 18.97% Foreign investors 24.35% Financial institutions 33.03% 8.58% Other corporations 0.93% Securities companies Note: KYOWA EXEO held 22,353 thousand shares (18.97%) as treasury stock, which are excluded from the above list. -12-

14 2. Stock Information (2) Analyst Rating (as of July 1, 2017) Company Analyst Rating SMBC Nikko Securities Inc. Mr. Hiroki Kawashima 2(Neutral) Daiwa Securities Co., Ltd. Mr. Hideaki Teraoka 2 (Outperform) Nomura Securities Co., Ltd. Mr. Kentaro Maekawa Neutral Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. Mr. Toshiya Mizutani Neutral -13-

15 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 Shibuya, Shibuya-ku, Tokyo JAPAN TEL: (81) FAX: (81) A variety of IR materials is available for consultation on our company website. -14-