Kyudenko Corporation
FY ended March 2023, 3rd quarter end

Securities code:1959

High lights

Sales¥251,255

million3rd-on-3rd

104.1%

3rd-on-3rd

93.5%

3rd-on-3rd

141.3%

Operating profit¥15,612

million

Orders¥362,352

million1

Outline of P/L March 2022
(Million yen)March 2022

March 2021
ResultResultYear-onyear

Plan (2021.4.28)

Progress

391,901

376,56396.1%

410,000

91.8%

Gross profit

56,631

57,361101.3%

60,00095.6%

Operating profit

32,99833,137100.4%

35,00094.7%

Ordinary project

35,90636,828102.6%

37,70097.7%

Net profit

25,042

26,216104.7%

25,500102.8%

Sales

Net profit per share(100.0%)(14.5%)(8.4%)(9.2%)(6.4%)¥353.48(100.0%)(15.2%)(8.8%)(9.8%)(7.0%)¥370.05(100.0%)(14.6%)(8.5%)(9.2%)(6.2%)¥359.942

Factors of change in OP March 2022
（billion yen）

36

:Increase:DecreaseA

34

Increase in
SG&A
expenses

▲0.6
32

32.9
Operatingprofit in

30

March,2021

E

B

Increase in fixed
costs included inconstruction costs

▲1.1

D

Improvement inProfit margin

C

Decrease in
sales

▲1.8

+3.0

Power
distribution
line work

+0.7

▲0.0
F

Other business

33.1
Operatingprofit inMarch,2022

28
3

Outline of P/L March 2023, 3rd quarter end(Million yen)March 2022,

March 2023,

3Qend Result

3Qend Result

241,283

251,255

34,56335,018(14.3%)(13.9%)

Operating profit

16,694

Ordinary profit

Net profit

Sales

Gross profit

Net profit per share

Change compared to the same
period of the previous year
Increase/decrease

Rate ofchange+9,972104.1％+454

101.3％

15,612▲1,082

93.5％

19,354

18,257▲1,097

94.3％

13,773

14,844+1,071

107.8％¥194.41¥209.53(100.0%)(6.9%)(8.0%)(5.7%)(100.0%)(6.2%)(7.3%)(5.9%)-

4

Factors of change in OP March 2023, 3rd quarter end（Billion Yen）

20

A

Increase in fixed costs included
in construction costs

+0.6

▲1.5
B

15

16.7
Operating profit
in March, 2022
3Q endDecrease in
SG&A
expensesC

Increase in
sales

+0.5

E

▲1.8
D

Improvement inProfit margin

Power
distribution
line work+0.3

F
Other business

+0.8

15.6
Operating profit
in March, 2023
3Q end105

Breakdown of construction sales and average profit margin(Kyudenko individual : excluding power distribution line work)
Average profit ratio

24.2

24.9

25.5

26.0

22.4

21.8

Total 305,015

Sales fromNot delivered
items

Project Not delivered（Percentage of completion method）

102,046 36%

122,858

40%

Sales fromdelivered items

83,771

Project delivered（Completed-contract method）

103,546 37%

98,386

15.7

14.9
Total 315,566

116,004

400,000

16.5

Total 289,434

37%

Total 274,526

95,302 33%

300,000

86,575 32%
200,000

Project delivered（Percentage-of-completion method）

27%

17.9

17.8

18.0
Total 279,794

500,000

Construction sales（Million yen）

19.1

18.3

74,20225.6

27%109,690 35%

104,440 36%

88,330 32%
100,000

33%

89,872

28%

89,692

31%

99,62136%
0

2018’032019’032020’032021’032022’036

Breakdown of construction sales and average profit margin(by quarterly accounting period)(Kyudenko individual : excluding power distribution line work)

Average profit ratio

150,000

30.4

27.2

26.4

26.1

27.7
24.4Construction sales

24.4

Total 98,634（Million yen）
100,000

19.0
18.6

39,276

17.8

Total 65,555
Sales from
Sales fromNot delivered items delivered items

Total 50,451

28,885

Total 59,886

11.9

54%

8,068

12%

58%

5,755

11%

15,811

31%

22,248

Project Not delivered（Percentage of completion method）

16.1

35,23934%

36,226
4,611
19,049

40%

60%

8%

32%

16,845

17% 50,000

42,51343%

Project delivered（Percentage of completion method）

Project delivered（Completed-contract method）
02021’1Q

2021’2Q

2021’3Q

2021’4Q
7

Breakdown of construction sales and Factor of gross profit ratio Dec.2022（Kyudenko individual:excluding power distribution line work）
Average profit ratio

25.5

24.7
18.4
18.0
total 184,114

17.1
total 202,061

Sales fromNot delivered items

Project Not delivered49%

15.517.4

14.2

97,124 48%

26.5
21.1

total 198,662（Percentage of completion method）

89,91326.6

96,806 49%

17.0

total 175,893

77,015 44%

25.6
21.2

Construction sales（Million yen）

15.4

total 177,673

200,000

87,133 49%
100,000

Project delivered（Percentage-of-completion method）

36,992 20%

300,000

50,491 25%

Sales fromdelivered items

51,375 26%

41,769 24%

34,122 19%

50,480 25%

57,108 32%

56,418 32%

Project delivered（Completed-contract method）

57,209 31%

54,446 27%

0

2018’122019’122020’122021’122022’128

Breakdown of construction sales and average profit margin(by quarterly accounting period)(Kyudenko individual : excluding power distribution line work)

Average profit ratio

28.8

25.8

150,000

27.1
25.9

25.3

15.4

Construction sales（Million yen）

17.1

15.3

100,000

13.7
Total 72,944
Sales from
Sales fromNot delivered items delivered items

Total 47,034

Total 57,694
43,502

Project Not delivered（Percentage of completion method）

54%
34,68959%

50,00060%

27,3544,713

10%

14,96731%

7,123
22,319

12%
34%

3,874

Project delivered（Percentage of completion method）

7%

19,131 Project delivered（Completed-contract method）

33%

2022’1Q

2022’2Q

2022’3Q

02022’4Q

9

Order received / Sales by department March 2022

(Million yen)

Sales of each department■2020.3■2020.3■2021.3■2021.3■2022.3■2022.3

166,344
153,773
152,495
134,955

176,545
156,104

59,30654,56446,659155,087
142,575
126,801131,872
118,699

123,199
119,511

46,90045,793 45,774(Million yen)Orders of each department

47,57445,65445,64642,86818,229Power
Electrical work HVAC work
distribution line
work

Solar plant
construction
work

Power
Electrical work HVAC work
distribution line
work

Solar plant
construction
work

10

Order received / Sales by department Dec. 2022

(Million Yen)

Sales of each department■2020.12■2020.12■2021.12■2021.12■2022.12■2022.12

150,000(Million Yen)

Orders of each department

176,622150,000

133,482
98,441
94,401
94,09286,74180,72874,06243,51732,614
26,91934,03432,337
31,785

120,880
105,963

92,20688,02334,87433,06932,37919,177
14,501
10,94500Powerdistribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

Power
distribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

11

Order received / Sales by customer March 2022

(Million yen)

Sales of each customer(Million yen)Orders of each customer■2020.3■2020.3■2021.3■2021.3■2022.3■2022.3

442,510331,538
307,216
290,213300,437
246,43147,50947,30645,59347,53946,42828,42845,497
27,79824,617

Kyushu ElectricPower Co,

Govermment/Public

17,208
Privatecompanies

Kyushu ElectricPower Co,

33,13327,526

Govermment/Public

Privatecompanies

12Order received / Sales by customer Dec. 2022

(Million Yen)

Sales of each customer(Million Yen)

Orders of each customer

250,000■2020.12■2019.12■2021.12■2020.12■2022.12■2021.12

302,907

213,553

194,327
188,229

250,000

199,182
183,663

33,48332,27331,80834,492

13,48912,8259,683

0

Kyushu ElectricPower Co,

Govermment/Public

Privatecompanies

33,89026,41333,031 25,207
23,3390

Kyushu ElectricPower Co,

Govermment/Public

Privatecompanies

13Order received / Sales by region March 2022
(Electrical & HVAC work excluding Solar plant construction work)(Million yen)

Sales of each region■2020.3

199,179■2020.3■2021.3 ■2022.3

194,445

189,138
186,123■2021.3 ■2022.3

199,689
174,679

77,59364,742
63,85470,37065,36064,96919,268
6,791
18,213
5,259
4,878
15,236
Kyushu(Million yen)Orders of each region

Tokyo Tohoku
and Chubu Areas

Osaka Area

Overseas

17,485 16,792
14,351
6,004 5,117
1,873
KyushuTokyo Tohoku andChubu Areas

Osaka Area

Overseas14Order received / Sales by region Dec. 2022

(Electrical & HVAC work excluding Solar plant construction work)(Million yen)

Sales of each region(Million yen)Orders of each region■2020.12 ■2021.12 ■2022.12

219,287

200,000■2020.12 ■2021.12 ■2022.12

200,000

115,231
114,970

123,094

151,684
124,711

48,59961,79256,14147,35645,96038,48012,446
9,865
4,886
7,648
3,152 4,130

12,402
12,082
9,610

0KyushuTokyo Tohoku
and Chubu
AreasOsaka Area

Overseas

0

KyushuTokyo Tohoku
and Chubu Areas

Osaka Area

16,6214,436
1,050
Overseas15

Order received / Sales by region March 2022

(Solar plant construction work)

Sales of each region■2020.3(Million yen)■2021.3 ■2022.3(Million yen)Orders of each region■2020.3■2021.3 ■2022.3

155,891

48,67224,01814,8296,301
Kyushu25,39618,142

Tokyo Tohoku and Chubu
Areas32,542
19,60812,403
6,433
4,332

7,787

Osaka Area

Kyushu

9,532

7,481
Tokyo Tohoku and Chubu
Areas2,960 793
1,045
Osaka Area

16

Order received / Sales by region Dec. 2022

(Solar plant construction work)(Million yen)

Sales of each region■2020.12 ■2021.12 ■2022.12■2020.12 ■2021.12 ■2022.12

50,00018,524

10,09518,027
14,487
14,183
12,43550,00011,707

10,506

8,550
7,323
6,870
5,521

4,491
300
0

KyushuTokyo and Chubu
Areas(Million yen)Orders of each region

Osaka Area

1,932

1,658
462 600

Tokyo and Chubu
Areas

Osaka Area

0

Kyushu17

Year-end amount of works on hand(Million yen)Order stock of each department

New orders in FY ended March 2022

■2020.3 ■2021.3 ■2022.3

214,542
178,207
174,417
Image

113,266 121,216
110,767
108,765
107,940

119,138

1,514
1,3751,247
PowerElectrical work HVAC work
distribution
line work

Solar plant
construction
work

18

Situation of works on hand Dec. 2022
(Million yen)Order stock of each department

New orders in FY ended Dec. 2022

■2020.12 ■2021.12 ■2022.12

194,520

134,655
126,660

2,354

185,527
165,452
167,957
156,539
126,998
120,561

1,979
1,969

0

Power
distribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

Image

Image

19

Outline of balance sheet(Million yen)

End ofMar.2021

End ofMar.2022

End of Dec
2022

212,574

216,979

253,370

Fixed assets

153,957

161,416

169,942

Total assets

366,532

378,396

423,313

Current
liabilities

125,361

123,446

129,805

Fixedliabilities

19,42913,754(3.6%)

42,469(10.0%)

Total
liabilities

144,790

137,201

172,274

Total net
assets221,741

241,194

251,038

Total liabilities
and net assets

366,532

378,396

423,313

Current
assets

(58.0%)(42.0%)(100.0%)(34.2%)(5.3%)(39.5%)(60.5%)(100.0%)(57.3%)(42.7%)(100.0%)(32.6%)(36.3%)(63.7%)(100.0%)(59.9%)(40.1%)(100.0%)(30.7%)(40.7%)(59.3%)(100.0%)

Increase/decrease

Main factors behind increase/decrease+36,390

Cash on hand and in banks +28,419
Trade notes and accounts receivable ▲22,592
Costs of uncompleted construction contracts ＋13,897+8,526

Investment in securities +3,847
Retirement benefits asset ＋2,704+44,917+6,359+28,714

Trade notes and accounts payable ▲26,477
Electronically recorded obligations +9,379
Advances received on uncompleted construction
contracts +22,847

Long-term debt +27,355+35,073+9,843Retained earnings ＋7,757+44,917

20

Sales and gross profit (quarterly accounting period)(Sales , gross profit：million yen)(Gross profit ratio：％)

200,000

Sales

Gross profit

Full-year results Full-year results Full-year results Full-year results Full-year results
Sales
Gross profit
Gross profit ratio

360,872
56,65915.7％

408,143
60,56114.8％

428,939
60,09314.0％

391,901
56,631
14.5％

20.0

Gross profit ratio

3Ｑ results

376,563
57,361
15.2％

251,255
35,01813.9％

18.0

150,000

16.0

100,000

14.0

50,000
12.0

0

10.0

1Q

2Q

3Q

2018’3

4Q

1Q

2Q

3Q

2019’3

4Q

1Q

2Q

3Q

2020’3

4Q

1Q

2Q

3Q

2021’3

4Q

1Q

2Q

3Q

2022’3

4Q

1Q

2Q

3Q

4Q

2023’321

Plan for March 2023
(Million yen)March 2022
ResultPlan for March 2023
March 2023
(2023.1.31 Revised)Year-on-Year

3Q Result

376,563

400,000

106.2％

Gross profit

57,36159,000102.9%

Operating profit

33,13732,50098.1%

15,61248.0%

Ordinary profit

36,82835,00095.0%

18,25752.2%

Current (quarter) net
profit26,21626,00099.2%

14,844

57.1%

Current net profit per
stock¥370.05

Sales

Dividends(100.0%)(15.2%)(8.8%)(9.8%)(7.0%)¥100

Interim ¥50(100.0%)(14.8%)(8.0%)(8.8%)(6.5%)¥367.00

251,255

Progress(100.0%)35,018(13.9%)(6.2%)(7.3%)(5.9%)

62.8%
59.4%

¥209.53¥100

Interim ¥50

22

Orders & Sales plan by department(Million yen)

Sales of each department■2021.3 ■2022.3

240,000■2023.3（plan）(Million yen)Orders of each department■2021.3 ■2022.3■2023.3（plan）

240,000

202,100
168,000
153,773
152,495
123,199 135,000
119,51147,00045,79345,77454,56446,65934,0000Power
distribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

155,087
142,575

147,500
131,872
118,699

48,00045,65445,6460

Power
distribution
line work

42,86829,40018,229
Electricalwork

HVAC work Solar plant
construction
work

23

Key measures for the Third year (FY2022)
Theme for FY2022『 Practice business reforms adapted to changes in the environment 』

Strategies[Excerpt]
The most important issues we face in the third year (FY2022)

Receive domestic orders, strengthen and expand
revenue base
• Secure large-scale projects in Japan• Systematic staffing for large projects• Continuation of profit margin improvement measures

Large-scale
projects

Soaring material
・Tenjin Big Bang・Urban Area Redevelopment and labor costs
・Semiconductor-related plants, etc.

Development and expansion of business areas
・Expansion of renewable energy power generation business area
• Strengthening the capture of clean energy demand• Participation in smart cities and urban development

Implementation of training plans and use of
the LMS for training to ensure steady growth• Promotion of OJT training and verification of effectiveness• Steady operation and utilization of the LMS

Secure order acquisition

Secure profits

Reliable construction progress《Most Important Initiatives》
 Improving Productivity by Implementing Business Reforms
１．Thorough review of business processes
２．Promotion of fundamental work style reform (optimal operation of all
departments throughout the company)
３．Effective utilization of construction forces (strengthening of personnel
structure to enable company-wide cross-function)
 Promote price negotiations to reflect rising material and labor costs

Pursuit of productivity and strengthening ofbusiness foundation through DX• Efficient operation through DX• Research and study of BIM and advanced digital technologies• Creation of new innovations

Strengthen governance structure and adhere tocompliance• Development of governance standards with prime market
transition• Consideration of system audits through DX

24

Trend of dividends
For the fiscal year ending March 31, 2023,
we plan to pay an annual dividend of 100 yen per share.
Dividend policyWithregard to distribution of profits, we seek to keep appropriate
130
financial strength and appropriately return profits to shareholders withstrengthening
management base for improving operating results and120
securing internal reserve necessary for further business expansion.
To 110satisfy expectations of shareholders, we continuously pay a stabledividend with the use of consolidated payout ratio 25% as a guide,comprehensively
taking into account business environment, operating
100
results and financial position.

100

100

100 100 100

Mar,2019

Mar,2020

Mar,2021

90

90

10
80

70
10

■ Special■ Memorial

70

60

45

50

40

15

30

10

13
3

Mar,2013

Mar,2014

20

10

25
2
7

0

Mar,2011

Mar,2012

Mar,2015

Mar,2016

Mar,2017

Mar,2018

Mar,2022

Mar,2023(Plan)

25

Analysis of works on hand
（Kyudenko individual : excluding power distribution work）
Fourth quarter opening construction works on hand by delivery schedule timing

Works on hand（Billion yen）

total 481.1
total 393.0
total 352.7
Deliver on after next FY

142.3

total 379.8

Deliver on FY(▲72.7)

total 317.1
127.6

244.2

214.0
283.9

Deliver on next FY

154.7

141.3

133.8

97.5

114.9

55.7

55.7

51.3

50.9

FY2018 4Q

FY2019 4Q

FY2020 4Q

FY2021 4Q(＋169.0)

55.9(+4.9)FY2022 4Q

26

Orders for small and medium-sized projects(Kyudenko individual : excluding power distribution work）

Orders for small and medium-sized projects with short construction periods and relatively high profit
margins(Million Yen)

73,69573,561
64,8342017.3Q

2018.3Q

75,3492021.3Q

2022.3Q

63,3552017.122019.3Q

76,1442020.3Q

27

Overview of power
generation businessInvestment in Power Operations (Solar Power Plants)
Mega solar power plant
Miyagi Fukushima
Ishikawa
Okayama Hyogo

Gotou
Hiroshima

Deals operated by group- In Operation

Chiba- Under construction- Preparing for construction
Projects for equity investment- In Operation- Under construction

Amami

Nara Mie

Aichi- Preparing for construction

29

Investment in Power Operations (Solar Power Plants)
Deals operated by group

Deals through investment in equity(make capital investment and record the entire operation to otheroperations sales)(acquire investment securities and record an amount equal to the equity to nonoperating revenues)
Depreciated at the straight line method

Depreciated at the declining balance method

Number ofpower
plantsGeneration
capacity(the entire
operation)

Generation
capacity(that equal tothe equity)

Number ofpower
plantsGeneration
capacity(the entire
operation)

Generation
capacity(that equal to theequity)In operation

49

92MW

87MW

In operation

51

624MW

169MW

Under
construction

-

-

-

Under
construction

3

602MW

110MW

Plan

-

-

-

Plan

-

-

-

Total

49

92MW

87MW

Total

54

1,227MW

279MW

From April to December , a total of 38 controls on output were issued by Kyushu Electric Power Company.
The average number of controls at our power plants was 7.
The total amount of lost profits for the group was about 147 million yen.
（In the same period of the previous year, it was 460 million yen.）30

Investment in Power Operations (Wind Power Plants)
Deals operated by group

Wind Power Plant
Fukui

Miyagi Fukushima

Ibaraki(make capital investment and record the entire operation to otheroperations sales)
Depreciated at the Mainly declining balance method
Number of
power plants

Generation capacity(the entire
operation)

Generation capacity(that equal to theequity)In Operation

6

47MW

46MW

Under
construction

-

-

-

Plan

-

-

-

Total

6

47MW

46MW

Deals through investment in equity
Gotou

Deals operated by group- In Operation
Projects for equity investment- In Operation- Under construction- Preparing for construction(acquire investment securities and record an amount equal to the equity to
non-operating revenues)
Depreciated at the Mainly declining balance method

Aichi

Number of
power plants

Generation capacity(the entire
operation)

Generation capacity(that equal to theequity)In Operation

5

144MW

48MW

Under
construction

－

－

－

Plan

1

15MW

3MW

Total

6

159MW

51MW

31

Investment in Power Operations Mar.2022 Result
Deals operated by group■Solar Power Plants ■Wind Power Plants■ Operating profit

1,449
962

1,556

Deals through investment in equity(Million yen)

1,748 1,734(Non-operating income)■Solar Power Plants ■Wind Power Plants

1,144(Million yen)

Total 5,089

Total 4,447
Total 4,282

Total 4,878
Total 4,822
Total 4,692

Total 1,583
Total 1,469

Total 1,450

Total 1,024
3,233

3,508

4,205

4,031

4,050

Total 774

3,917

1,412

Total 1

938

883

2017'032018'032019'03790
2020'03

828

775

2021'032022'03-368
2017'03

1,280
1,066

876

369
1,048

1,447

-101

2018'0338

2019'03135

189

2020'032021'03-422022'0332

Investment in Power Operations March 2023, 3rd quarter end
Deals operated by group■Solar Power Plants ■Wind Power Plants

1,132

Total
3,463

2,860

Total
4,038

3,458

1,895
1,412

1,505

(Non-operating income)(Million yen)

■ Operating profit

1,294

Deals through investment in equity■Solar Power Plants ■Wind Power Plants

1,370(Million yen)

Total
3,891

3,342

Total
4,066
Total
Total
3,824
3,616

3,240

3,420
3,087

Total
1,042
Total
588

1,055

Total
1,127

1,138

Total
1,205
Total
943

957

597

-9
602

579

549

584

529

645

2017'122018'122019'122020'122021'122022'122017'12-12

2018'12-11-14

2019'122020'12

Total
628

1,328

713

-85

2021'12-1222022'1233

Mid-term management plan

Key measures "Promotion of Environmental Management" was added as a new issue to be addressed.
While incorporating environmental management and CSV management into our management strategy,
we will adapt to an environment that is changing at an unprecedented pace.

Three reforms
Reform of construction capability
・Strengthen hiring of engineers based on a long-term workforce plan
・Reduce the turnover rate of young engineers by reviewing technical education
・Establish a system to ensure the timely and optimal deployment of all technicians
・Review the construction management system by strengthening and utilizing theTechnology Management Department
・Promote multifunctional workers

Issues continuing from the previous Mid-term Plan
・Deepen measures to improve profit margins
・Strengthen and expand the order base of the domestic facility work industry
・Strengthen the profitability of power distribution line work
・Develop new business areas
・Create an attractive workplace environment

New Issues to be addressed
Reform of productivity

・Promotion of Environmental Management

・Review the company-wide and departmental training systems
・Achieve optimal personnel rotation for the entire company
・Promote rationalization and labor saving through the use of cutting-edge
technology and IT
・Realize business reforms

Reform of governance・Strengthen and thoroughly implement a governance system

35

Promotion of Environmental Management１

Setting medium- to long-term environmental management goals※1

Reduce CO2 emissions intensity per sales of completed construction by at least 50% by 2030(compared to 2013)
Achieve carbon neutrality by 2050

※1 Since total CO2 emissions are expected to increase as a company grows, we used the unit emissions (total emissions divided by sales), which ismore easily comparable from year to year than total emissions.

２

Endorsement of TCFD recommendations■ In December 2021, as part of its commitment to environmental management, the company expressed its support for the
TCFD recommendations.
 Based on the recommendations, we analyze the risks and opportunities that climate change poses to our business anddisclose information on the financial impact in our integrated report (KYUDENKO REPORT 2022).

３

Establishment of new organization■Established the Environmental Management Promotion Office as a dedicated department to promote environmental management.
■Established the Sustainability Promotion Committee, headed by the president, to implement management that takes into
consideration "environment" "society" and "governance".

36

New mid-term management plan(2020～2024）

Main theme

Establish a management foundation for sustainable growth～Realization of the three reforms～
Numerical target
Final year（Mar.2024）
Sales
Ordinary profit
margin

ＲＯＩＣ（Breakdown of construction sales）

500 billion yen
50 billion yen
Over 10.0 ％Power distribution line work
Electrical･HVAC work

50 billion yen
334 billion yen

Renewable Energy Business,etc.

81 billion yen

Other business

35 billion yen

Over 10.0 ％※ROIC is used as an accurate measure of a company's capital eﬃciency.

37

Road map of sales plan
Goals for the(Billion yen)

final year

500
400

429

Solar plant
construction(17.0）

392

Renewable energy businessSolar plant
67.8 construction (59.3）

377

61.5 Solar plant

54.4

construction (54.5）

Electricalconstruction

149.1

157.7

81.0

Solar plant
construction (46.6）

191.0

148.4

HVAC

143.0

129.9

116.0

108.9

45.8
19.5

45.7
18.9

Mar.2020

Mar.2021

Mar.2022

11.7％

10.0％

9.4％

Power distribution line

46.9
Others 26.7

ROIC

50.0
35.0
Mar.2023

Mar.2024

Mar.2025

The period of the new mid-term management plan(2020－2024）
Value of sales assumption for FY2022 at thetime of formulation of the medium-term
management plan.

38

Appendix

Corporate profile

Company name

Kyudenko Corporation

Established

December 1, 1944

Capital￥12,561 million

Listed market
Code

Prime Market of Tokyo Stock Exchange, Fukuoka Stock Exchange
1959

Head office

1-23-35 Nanokawa, Minamiku, Fukuoka city

Tokyo head officeSunshine 60 3-1-1 Higashi-Ikebukuro, Toshima-ku, Tokyo

Bases

Head office, Tokyo head office, 13 branches in Japan, 109 sales
offices, / 5 overseas subsidiaries

Approval for
construction

Approved by Minister of Land, Infrastructure, Transport and Tourism(Sp. 29) No. 1659

Number of
employees

Consolidated: 10,528persons (March 31, 2022)
40

Actual results of recruitment of human resources(Kyudenko individual) and workforce planning≪ Comparison in actual results of recruitment
for April 2022 with other companies≫≪ Actual results of periodic recruitment of engineers andskilled persons≫2016 2017 2018 2019 2020 2021 2022

Total
engineersand skilled
persons

2007～
2015

Around
200

262

344

384

342

336

387

306

High
schoolgraduates

Around
150

177

248

271

253

253

263

University
graduates

Around
50

85

96

113

89

83

124

Kyudenko

Large electricalconstruction
companies

Large HVAC
companies

Super general
constructors

Total in all
professions

332

310～41080～100200～360

225

High school
graduates

230

Around220

Around10

Around10

81

University
graduates

102

90～19070～100190～340

Mar. 2020

Mar. 2021

Mar. 2022

Mar. 2023

Mar. 2024

Mar. 2025

Increase or
decrease inplanElectrical work department

2,274

2,359

2,468

2,599

2,750

2,893

About+550

HVAC work department

1,138

1,188

1,212

1,355

1,435

1,517

About+320

Year-end workforce of electricaland HVAC

3,411

3,547

3,680

3,954

4,185

4,410

About+870

Power distribution line
department

1,642

1,566

1,519

1,632

1,641

1,666

About+50

Other

1,446

1,469

1,508

1,402

1,397

1,408

Employees of single
Kyudenko

6,500

6,582

6,707

6,988

7,223

7,484

About+900

Employees of group10,018

10,198

10,52812,000

About+2,000≪ Planned year-end workforce until FY2025 March≫ Total 8,500 employees in technical field of total 10,000(Kyudenko)(Subsidiaries)

Number ofsite
technicians

About 2,000+

About 2,000=

About 4,000

Number of
construction
managers

About 3,200+

About 1,300=

About 4,500
41

Development of new business areas: First introduction of Kyudenko EMS in Japan➤ First case in the nation for a municipality
Ogi City, Saga Prefecture
Project to Strengthen Disaster Prevention Functions of Ogi City Hall
・Use of electricity generated by photovoltaic power generation equipment in the building (off-grid system using renewable energy)・Installation of energy-efficient air conditioning and lighting equipment (CO2 emissions reduction through energy conservation)

Solar Power Generation, Lead-acid Battery, EMS Equipment
Generated and stored power is automatically controlled by EMS.
All electricity in government buildings is provided by renewableenergy.

Parking lot on thewest side of thecity hall・Solar carporttype photovoltaic
facility
・Lead-acid batteries
・Control device
systemAir Conditioning Equipment, Lighting Equipment, BEMS Equipment"Yumeria (shelter)“Ogi City Hall

(Disaster Prevention Base)・BEMS
・Conversion of lighting
equipment to LED
・Power saving of air
conditioning equipment

The equipment with BEMS saves energy. This reduces the loadon solar power generation equipment.

Electricity is transmitted tolighting, air conditioning
equipment, and someelectrical outlets.

自営線「Yumeria」

The generated electricity is charged into lead-acid batteries.
The EMS controls its output to meet the demand. The poweris supplied to the power receiving and transforming facilities
within the agency.

Solar
Power Generation
太陽光発電
538.2kWp
538.2kWp

BEMS

電力系統
Electric
Power System

EMS
flow of electricity
電気の流れ
Data communication andデータ通信・制御

・The system supplies power charged in storage batteries.
・It can supply power to government buildings for 72 hours.
・Electricity is also supplied to the welfare center "Yumeria",which serves as an evacuation center.

Lead-acid
Battery
鉛蓄電池
3,456kWh
3,456kWhcontrol42

Development of new business areas: Air conditioning/heat source control optimization system『Air conditioning/heat source control optimization systemusing AI optimization technology』
・Jointly developed with Grid Corporation, a company with proprietary cutting-edge AI technology, as a project partner
・An automatic operation system that calculates parameters and performs optimally to conserve energy and reduce CO2 by using AI,
which is to analyze and learn operational data of air conditioning and heat sources. (AI plans optimal operation schedules for air
conditioning heat sources)
・Simulated the performance for multiple large-scale facilities (scheduled to be introduced to a demonstration test at a facility in FY2022)

Support for the introduction of services that can be utilizedin various facilities with central heat source systems
It can be installed in a variety of heat source
configurations for various building applications toautomate and optimize operations.

Facility
Manageme
nt

系統1
系統2

Monitoring
equipment
operation

系統3

往きヘッダー

還りヘッダー
熱源1
熱源2
熱源3

Provides operation results andoperation plans remotely

Controlling
equipment
operation

Remotecollection ofoperatingresults

Optimizatio
n system

01_Prerequisite information on air
conditioning control
Predicts air conditioning heat load by timeof day by system based on weather
conditions and past operational results

AI plans optimal
operation schedules
for air conditioning
heat sourcesAI

AI will develop an operation
plan for the facility.

02_Input of operation plan conditions
Depending on the input based on the heatsource load factor, the heat rate,
temperature, flow rate, pressure, etc.
Reproduces operation while taking physicalfactors into account
03_Data output after execution ofoperation plan
Data output of planned values such asenergy costs and CO2 emissions as well as
target values for flow and pressure when
executing the entered operation plan
04_Optimal operation planning
Over/Under Heat Generation and Cost and CO2
Savings Planning of operation plan for
optimization with evaluation function.

43

Promoting Diversity
Basic Policy on Diversity Promotion
Based on our Corporate Philosophy and Charter of Corporate Behavior, we believe that our greatest management
resource is our human resources. By respecting and utilizing diversity as a strength of our organization, we aim tocreate new value and enhance our competitiveness. We are committed to promoting diversity by setting thefollowing goals. Through these efforts, we will contribute to the achievement of the SDGs (Sustainable
Development Goals).

Corporate Philosophy

1.We contribute to society through providing agreeable environmental solution.
2.We keep challenging for sustainable development through our engineering strengthand create a new value.
3.We aim to create mutual respecting environment in Kyudenko which utilize
and develop employees’ personality.

Charter of Corporate Behavior

1.・・・・・・・・

4. By realizing employee comfort and affluence, we will ensure a safe, easy-towork-in, and open workplace environment, and create a bright and energetic
corporate culture that respects the personality, individuality, and diversity of
our employees.

What we aim for1.We will create a corporate culture that respects and utilizes diversity.
We will create a corporate culture that respects and recognizes diversity interms of gender, age, disability, race, ability, values, sexual minorities, etc.,
and maximizes its use as an organizational strength.
2.Fostering diverse human resources and promoting their activities.
We will promote the hiring, training, and promotion of diverse humanresources, and support diverse career development and skills development.
3.We will create an attractive work environment that is rewarding andchallenging.
We will strive to improve engagement by creating a workplace environment
in which employees want to work and continue to work, including anenvironment in which each employee can maximize his or her abilities and10.・・・・・・・

in which diverse and flexible work styles are possible.

Basic Policy on Diversity Promotion

Relevance to SDGs

Commitment video by thepresident

44

Front-loading initiatives
Benefits of being involved from the design stage・[Design Phase] Design changes can be made from the initial design stage(Effective suggestions and cost savings can be anticipated.)・[Contract Stage] Orders can be received with cost savings factored in・[Construction Phase] It allows for a smooth handover to the field<Image in our company><The Concept of Front Loading>（conventional）

Ease of change／
Cost

Aim to participate inprojects at the basic andimplementation design
stage

Ease ofchangeEarly in the projectstage, design changes
are easy

A design processthat incorporates
front-loading

Ahead ofschedule

Cost ofchangeImplementing designchanges at the end of a
project is time-consuming
and costly.

Traditional Design
Processinvestigati
onPlanning and
Designbasic
designdetailed design

Project Progressprocurement

construction（Use of front-loading）

investigation

design office

investigation

design officePlanning and
Designdesign officePlanning and
Designdesign officebasic design

design officeorder strategy

Kyudenkodetailed design

design officebasic design

design office・Kyudenko※Design Change
Proposalorder strategy

Kyudenkodetailed design

design office・Kyudenko※Design Change
Proposalconstruction

Kyudenko

construction

Kyudenkoadministration

45

Specific measures to improve the profit margin (excerpt)
Factor

１.Cost increase causedby exceeding the plannedlabor and material cost
after receiving an order.

２.Cost increase due tothe compression of facility
construction
process causedby building construction
delay.

Measures・Forecasting the peak of busyness in the whole construction
A. Forecasting the busyness
period, make an input plan for workers early and start thepeak of construction
arrangement. Review the plan in a timely manner andmake adjustments throughout the company.
・Close relationships with construction cooperation companies,
planned order and allocate appropriate personnel, suppress
B. Measures for increase oflabor costs increase.
construction cooperation（Branch executives present annual order amount, andcompanies’ labor costs.
exchange information with cooperation companies
directly.)
C. Establishment of team・Establishment of a team specialized for supporting
supporting construction.
construction by employee technicians.
D. Material ordering linked
・Technical department check whether each branch andto design change andaffiliated company uses Q-mast for purchasing materials, infurther utilization ofcooperation with “Q-mast”. When utilization does not”Q-mast” which affiliatedadvance, technical department and Q-mast investigate thecompany specialized forcause and solve.
purchasing material.
E. Approach to・Make design changes possible based on budget by building a“Front Loading”
good relationship with design office.
・For additional work, the sales representative and theF. Sales representative’s
construction manager cooperate, and before starting
help to construction site
construction, be sure to submit each estimate and negotiate
after construction starts.
the price・Confirming the delay in building construction work process
G. Dealing to delays inwould be happen at the first construction study meetingthe progress of building
after receiving an order, and teaching the method whichconstruction work
make the facility construction possible in advance ofbuilding construction.

46

【Positional relationship】
Fukuoka Waterfront Next, Tenjin Big Bang, Hakata Connected

Relaxation of height restriction
380,000 ㎡ in the waterfront area (70m→100m)
193,000 ㎡ in Tenjin area (67m→115m at
maximum)
Request for relaxation of height restriction
Hakata Station area (50m→60m)

Sanyo Shinkansen line

Waterfront area

空港まで10
10 minutesby 分
highway
to the airport

Fukuoka urban expressway
10
minutes
15 minutes
空港まで10by highway
分
to the airport

5 minutes

Hakata Station area

Showa Street
Meiji Street

Tenjin area
Fukuoka City Subway Airport Line
Nishi-Nippon Railroad
Fukuoka(Tenjin)station

10
minutes tothe airport
5 minutes
Fukuoka City Subway Nanakuma Line47

【Project contents】
Fukuoka Waterfront Next, Tenjin Big Bang, Hakata Connected
Project

Purpose

Period and scale①Tenjin Big Bang・By promoting theredevelopment of the Tenjin
area, which is the center of
Fukuoka, enhance the roleand function as a hub city in
Asia and create jobs

・Through 2026
・About 193,000㎡ of about
500ｍ in radius from
Tenjin intersection
・Total floor area
About 800,000㎡
・Reconstruction ofbuildings in Tenjin
area (30 buildings)②Fukuoka
Waterfront Next

・Create bustle around Hakata
Port, the gateway to Kyushu
・Improved urban functions tomeet MICE and cruisedemand・Over 10-20 years
・Cruise terminal, MICE,
commercial facilities,
hotels・Connect the vitality andbustle of Hakata Station, thegateway to Kyushu, to thesurrounding area.

・Through 2028
・About 800,000㎡ ofabout 500m in radiusfrom Hakata Station
・Reconstruction ofbuildings around
Hakata Station (20 buildings)③Hakata Connected48