Kyudenko Corporation
FY ended March 2022, Third quarter end

Securities code:1959

High lights

Sales¥241,283

million3rd-on-3rd

90.5%

3rd-on-3rd

88.6%

3rd-on-3rd

105.4%

Operating profit¥16,741

million

Orders¥256,411

million1

Outline of P/L March 2021
(Million yen)March 2021

March 2020
ResultResultYear-onyear

Plan (2020.7.31)

Progress

428,939

391,901

91.4%

413,000

94.9%

Gross profit

60,09356,631

94.2%

56,400100.4%

Operating profit

36,022

32,99891.6%

32,000103.1%

Ordinary project

38,64335,90692.9%

34,000105.6%Net profit

26,24525,042

95.4%

22,500111.3%

Sales

Net profit per share(100.0%)(14.0%)(8.4%)(9.0%)(6.1%)¥370.00(100.0%)(14.5%)(8.4%)(9.2%)(6.4%)¥353.48(100.0%)(13.7%)(7.7%)(8.2%)(5.4%)¥317.592

Factors of change in OP March 2021
（billion yen）

38

36

:IncreaseA・Bonus decrease・Increase of other fixed cost(overhead cost) in SG&A
Gross Cost

▲0.1

▲0.1

:DecreaseC

Decrease in
sales

B

Power
distribution
line work

34

36.0

E

▲4.0

Improvement in profit
margin(Except D)

F

Operatingprofit in

32

＋3.2

March,2020

▲1.6
30

▲0.5

D

Other business

32.9
Operatingprofit inMarch,2021

Decline in profit due to somelarge projects with worsening
profitability caused by tightprocess at the end of theprevious fiscal year3Outline of P/L March 2022, 3rd quarter end(Million yen)March 2021,

March 2022,

3Qend Result

3Qend Result

266,597

241,283

36,86334,563(13.8%)(14.3%)

Operating profit

18,898

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▲25,31490.5％▲2,29993.8％

16,741▲2,15688.6％

20,94019,402▲1,538

92.7％

13,845

13,787▲57

99.6％¥195.43¥194.62(100.0%)(7.1%)(7.9%)(5.2%)(100.0%)(6.9%)(8.0%)(5.7%)-

4

Factors of change in OP March 2022, 3rd quarter end（Billion Yen）

20

A

Increase in fixed costs included
in construction costs

18.8
15

Operating profit
in March, 2021
3Q end

▲1.2

+0.1
B

Decrease in
SG&A
expenses

E
C

Power
distribution
line work

Decrease in
sales

▲2.9

▲0.5
+2.6
D

Improvement inProfit margin

F

Other business

▲0.2

16.7
Operating profit
in March, 2022
3Q end105

Breakdown of construction sales and Factor of gross profit ratio Mar.2021 Full Year
(Kyudenko individual : excluding power distribution line work)

Average profit ratio

23.4

21.8

24.2

24.9

500,000

19.1

18.3

Sales fromNot delivered
items

Total 262,902

18.0

Total 279,794

31%

17.8
14.9

Total 305,015

Project Not delivered（Percentage of completion method）

102,046 36%

122,858 40%

Construction sales

15.7

Total 315,566

116,004 37%

400,000

17.9（Million yen）

Total 289,434 300,000

95,302 33%
200,000

Sales fromdelivered items

Project delivered（Percentage-of-completion method）

79,870

26.0

21.8

17.7

80,49825.5

30%

74,202

Project delivered（Completed-contract method）

102,534 39%

27%

103,546 37%

83,771

27%

109,690 35%

104,440 36%
100,000

98,38633%

89,872

28%

89,692 31%
0

2017’032018’032019’032020’032021’036

Breakdown of construction sales and Factor of gross profit ratio Mar.2021 Full Year(by quarterly accounting period) (Kyudenko individual : excluding power distribution line work)

Average profit ratio

26.2

25.5

15.4

150,000

28.3
26.6

16.2

25.3
22.7
17.5 Construction sales

16.0（Million yen）

15.6

14.8

100,000

Total 90,772

Total 78,189

38,370Total 63,017
Sales from
Sales fromNot delivered items delivered items

Project Not delivered（Percentage of completion method）

Total 57,456

51,76035,72166%

62%39,10362%

13,19015%

39,21243%

50,000

Project delivered（Percentage of completion method）

11%

7,036

12%

7,838

10%

6,722

14,69926%

18,59024%

17,1912020’1Q

42%

27%

Project delivered（Completed-contract method）
0

2020’2Q

2020’3Q

2020’4Q

7

Breakdown of construction sales and Factor of gross profit ratio Dec.2021（Kyudenko individual：excluding power distribution line work）
Average profit ratio

26.3
25.5

24.7

24.2

Sales fromNot delivered items

82,012

46%

49%

Project delivered（Percentage-of-completion method）

32,94419%

36,992

20%

Sales fromdelivered items

Project delivered（Completed-contract method）

60,96935%

57,209

31%

17.0

15.5

200,000

total 198,662

14.2

Project Not delivered（Percentage of completion method） 97,124

Construction sales（Million yen）

17.4

total 202,061

total 184,114

89,913300,000

17.1

18.0

Total 175,925

26.5
21.1

18.4
16.9

26.6

48%

96,806

total 175,893

49%

77,015 44%
100,000

50,491

25%

51,37526%

41,769 24%

54,44627%

50,48025%

57,108 32%
0

2017’122018’122019’122020’122021’128

Breakdown of construction sales and Factor of gross profit ratio(Quarterly accounting period)（Kyudenko individual：excluding power distribution line work）

150,000

Average profit ratio

30.4

27.2

26.1

26.4

Construction sales（Million yen）

24.4

100,000

18.6

16.1

17.8

Sales from
Sales fromNot delivered items delivered items

total 65,555

total 59,886 11.9

total 50,451

28,885

54%

8,068

12%

22,248

34%

58%

5,755

11%

15,81131%

2021’1Q

35,2392021’2Q

Project Not delivered（Percentage of completion method） 50,000

36,226

60%

4,611

8%

19,04932% Project delivered

2021’3Q

2021’4Q

Project delivered（Percentage-of-completion method）（Completed-contract method）
0Order received / Sales by department March 2021

(Million yen)

Sales of each department■2019.3■2019.3■2020.3■2020.3■2021.3

176,545■2021.3

166,344
165,667
153,773

162,646
156,104

150,469
142,575

134,955
126,573
123,199

47,706
46,900 45,793(Million yen)Orders of each department

126,801
118,699

59,30654,564
48,37947,57447,453 45,654

45,332

18,229Power
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. 2021

(Million Yen)

Sales of each department(Million Yen)

Orders of each department■2019.12■2019.12

150,000

150,000■2020.12■2020.12■2021.12■2021.12

118,310
103,71498,441
94,40187,80680,72874,062

105,963

95,84992,20688,02343,51735,27534,034
31,785

120,880

36,900 32,614

36,57834,87432,37923,423
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 2021

(Million yen)

Sales of each customer■2019.3■2019.3■2020.3■2020.3■2021.3■2021.3

331,538
305,300(Million yen)Orders of each customer

442,510

326,676

307,216

246,431

48,79447,53945,497
Kyushu ElectricPower Co,

48,65547,30645,593

34,23328,428 24,617
Govermment/Public

Privatecompanies

Kyushu ElectricPower Co,

30,57033,133
17,208Govermment/Public

Privatecompanies

12Order received / Sales by customer Dec. 2021

(Million Yen)

Sales of each customer
250,000■2019.12■2019.12■2020.12■2020.12■2021.12

35,00733,48331,808250,000

213,553
210,763
188,229

199,182
183,663

17,926
12,825
9,683
Govermment/Public

228,326■2021.12

36,071

34,49233,89025,207
23,3399,764

0

Kyushu ElectricPower Co,

(Million Yen)

Orders of each customer

Privatecompanies

0

Kyushu ElectricPower Co,

Govermment/Public

Privatecompanies

13Order received / Sales by region March 2021

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

Sales of each region■2019.3■2019.3■2020.3 ■2021.3(Million yen)Orders of each region■2020.3 ■2021.3

218,328
202,906 199,179
189,138

194,445
174,679

68,471 70,370

77,59364,742
68,09564,96920,574

19,26817,275 18,213 5,259
3,963 4,878
KyushuTokyo Tohoku andChubu Areas

Osaka Area

Overseas

17,485
14,351 6,004
5,742 1,873
KyushuTokyo Tohoku andChubu Areas

Osaka Area

Overseas14Order received / Sales by region Dec. 2021
(Electrical & HVAC work excluding Solar plant construction work)(Million yen)

Sales of each region■2019.12 ■2020.12 ■2021.12■2019.12 ■2020.12 ■2021.12

200,000

200,000

144,924
126,193

115,231
114,970

151,684

124,711

56,141

48,59948,39938,48013,9784,886
12,446
9,865 3,152
2,949

52,496

Tokyo Tohoku
and Chubu
AreasOsaka Area

Overseas047,356

12,082
12,034 9,610 4,705
4,436
1,050

0

Kyushu(Million yen)Orders of each region

KyushuTokyo Tohoku
and Chubu Areas

Osaka Area

Overseas15

Order received / Sales by region March 2021

(Solar plant construction work)(Million yen)

Sales of each region■2019.3■2020.3 ■2021.3(Million yen)Orders of each region■2019.3■2020.3 ■2021.3

155,891

48,67240,18927,36524,01818,142
6,306 6,301
KyushuTokyo Tohoku and Chubu
Areas12,403

13,316

1,8834,332
Osaka Area

Kyushu19,608
7,787

7,481
Tokyo Tohoku and Chubu
Areas

4,650
1,045 2,960
Osaka Area

16

Order received / Sales by region Dec. 2021

(Solar plant construction work)(Million yen)

Sales of each region■2019.12 ■2020.12 ■2021.12(Million yen)Orders of each region■2019.12 ■2020.12 ■2021.12

50,00050,00032,682

18,52418,027
14,487
10,095

13,324
10,506

2,966

8,550
5,521

4,491

1,932

1,251
0

KyushuTokyo and Chubu
Areas

Osaka Area

9,191
7,323
1,658
907
462

0

KyushuTokyo and Chubu
Areas

Osaka Area

17

Year-end amount of works on hand

Order stock of eachdepartment(Million yen)

New orders in FY ended March 2021

■2019.3 ■2020.3 ■2021.3

214,542

178,207

129,498

Image

119,138 121,420
113,266
107,940
108,765
97,304

1,514
840

1,375

Power
Electrical work HVAC work
distribution
line work

Solar plant
construction
work

18

Situation of works on hand Dec. 2021

(Million yen)Order stock of each department

New orders in FY ended Dec. 2021

■2019.12 ■2020.12 ■2021.12
Image

220,000

185,527

143,975

134,655
129,464
126,660
126,998
120,561

156,539

83,826

Image

2,354
2,143
1,969
0

Power
distribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

19

Outline of balance sheet(Million yen)

End ofMar.2020

End ofMar.2021

End of Dec
2021

216,269

212,574

191,040

Fixed assets

152,212

153,957

157,127

Total assets

368,482

366,532

348,168

Current
liabilities

142,723

125,361

102,974

Fixedliabilities

28,316

19,42918,600Total
liabilities

171,039

144,790

121,574

Total net
assets197,442

221,741

226,593

Total liabilities
and net assets

368,482

366,532

348,168

Current
assets(58.7%)(41.3%)(100.0%)(38.7%)(7.7%)(46.4%)(53.6%)(100.0%)(58.0%)(42.0%)(100.0%)(34.2%)(5.3%)(39.5%)(60.5%)(100.0%)(54.9%)(45.1%)(100.0%)(29.6%)(5.3%)(34.9%)(65.1%)(100.0%)

Increase/decrease

Main factors behind increase/decrease▲21,533

Trade notes and accounts receivable ▲36,711
Costs of uncompleted construction contracts ＋11,746
Raw materials and supplies ＋7,302＋3,169Goodwill ＋1,935
Investment securities ▲2,420
Asset for retirement benefits ＋2,763▲18,363▲22,387▲828

Trade notes and accounts payable ▲22,978Long-term debt ▲1,257▲23,215＋4,852Retained earnings ＋6,625▲18,36320

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
360,872
56,65915.7％

341,771
51,951
15.2％

Sales
Gross profit
Gross profit ratio

408,143
60,56114.8％

428,939
60,09314.0％

20.0

Gross profit ratio

3Ｑ results

391,901
56,631
14.5％

241,283
34,56314.3％

18.0

150,000

16.0

100,000

14.0

50,000
12.0

0

10.0

1Q

2Q

3Q

2017’3

4Q

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

21

Plan for March 2022
(Million yen)

Plan for March 2022

March 2021
ResultMarch 2022

Year-on-Year

3Q Result

391,901

410,000

104.6%

Gross profit

56,63160,000105.9%

Operating profit

32,99835,000106.1%

16,741

47.8%

Ordinary profit

35,90637,700105.0%

19,402

51.5%

Current (quarter) net
profit25,04225,500101.8%

13,787

54.1%

Current net profit per
stock¥353.48

Sales

Dividends(100.0%)(14.5%)(8.4%)(9.2%)(6.4%)¥100

Interim ¥50(100.0%)(14.6%)(8.5%)(9.2%)(6.2%)¥359.94

241,283

Progress(100.0%)34,563(14.3%)(6.9%)(8.0%)(5.7%)

58.8%
57.6%

¥194.62¥100

Interim ¥50

22

Orders & Sales plan by department(Million yen)

Sales of each department■2020.3 ■2021.3

240,000■2022.3（plan）(Million yen)Orders of each department■2020.3 ■2021.3■2022.3（plan）

240,000

180,000

165,000

166,344
153,773

176,545

156,104
142,575

134,955 132,000
123,199

59,306 55,000
54,56446,900 46,000
45,793

126,801 137,000
118,699

47,57446,00045,65430,00018,2290Powerdistribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

0

Power
distribution
line work

Electricalwork

HVAC work Solar plant
construction
work

23

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 393.0
total 352.7
total 329.4
Deliver on after next FY

142.3

169.8

Deliver on next FY

106.8

Deliver on FY

154.7

total 379.8

total 317.1
127.6

133.8

244.2

97.5

214.0

(▲302)

114.9(＋174)

52.8

55.7

55.7

51.3

50.9

FY2017 4Q

FY2018 4Q

FY2019 4Q

FY2020 4Q

FY2021 4Q

(▲3)

24

Analysis by scale of order(Kyudenko individual : excluding power distribution work）(Million yen)2017.3Q

2018.3Q

2019.3Q

2020.3Q

2021.3Q

100～300 million yen

2017.3Q

2018.3Q

2019.3Q

2020.3Q

2021.3Q

Under 100 million yen
25

Overview of power
generation businessInvestment in Power Operations (Solar Power Plants)
Mega solar power plant

Ishikawa

Miyagi
Fukushima

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

27

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

50

577MW

155MW

Under
construction

-

-

-

Under
construction

4

649MW

124MW

Plan

-

-

-

Plan

-

-

-

Total

49

92MW

87MW

Total

54

1,227MW

279MW

From April to December, a total of 63 controls on output were issued by Kyushu Electric Power Company.
The average number of controls at our power plants was 20.
The total amount of lost profits for the group was about 460million yen.

28

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

風力発電所
Fukui

Miyagi
Fukushima(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

4

37MW

37MW

Under
construction

-

-

-

Plan

-

-

-

Total

4

37MW

37MW

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

145MW

50MW

Under
construction

1

7MW

2MW

Plan

1

15MW

3MW

Total

7

167MW

55MW

29

Investment in Power Operations Mar.2021 Result
Deals operated by group

Deals through investment in equity■Solar Power Plants ■Wind Power Plants (Million yen)
■ Operating profit
1,748

1,449
962
616

1,556

(Non-operating income)■Solar Power Plants ■Wind Power Plants

1,144(Million yen)

Total
Total 5,089
4,878
Total 4,822
Total 4,447

Total
1,469
Total 1,583

Total 4,282

Total 1,450

Total 3,619
4,205
3,233

3,508

4,031

4,050

Total 774

Total 1
Total 292
215

2016'03

1,280

135

189

2020'032021'03

1,412

2,702

917

1,447

1,048
2017'03

369

76
938
2018'03883
2019'03

790

828

2020'032021'03

876

-101

38

-368
2016'032017'032018'032019'0330

Investment in Power Operations March 2022, 3rd quarter end
Deals operated by group

Deals through investment inequity■Solar Power Plants ■Wind Power Plants (Million yen)
■ Operating profit

890

1,132

Total
Total
3,463
3,247

2,559

2,860

1,294

1,412

1,505

1,370

(Non-operating income)■Solar Power Plants ■Wind Power Plants(Million yen)Total
4,038 Total
3,891

3,458

3,342

Total
3,824

3,240

Total
3,616

Total
1,042
Total
588

3,087

Total
▲116

1,055

Total
1,127

1,138

Total
943

Total
628

957
713

597

208
-9
688

602

579

549

584

529

2016'122017'122018'122019'122020'122021'12-325
2016'122017'12-12-11

2018'122019'12-14

2020'12-852021'1231

Mid-term management plan

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.

33

New mid-term management plan(2020～2024）
Establish a management foundation forsustainable growth～Realization of the three reforms～

Strong and muscular
corporate structure
Three reform
construction capability

productivity

governance

Issues continuing from the previous mid-term management plan
Deepen measures to improve profit
margins

Development of new business areas

Strengthen and expand the order

Creating an Attractive Workplacebase of the domestic equipment

Environment

Strengthen the profitability of power
distribution line work

Improving corporate value

34

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

final year

500
429
392

Renewable energy business

81.0

410

Solar plant
construction(17.0）

Solar plant

67.8 construction (59.3）

61.5 Solar plant

construction (54.5）

Electricalconstruction

191.0

149.1

157.7
HVAC

143.0

129.9

116.0

Power distribution line

46.9
Others 26.7

ROIC

50.0

45.8
19.5

Mar.2020

Mar.2021

11.7％

10.0％

35.0
Mar.2022

Mar.2023

Mar.2024

Mar.2025

The period of the new mid-term management plan(2020－2024）

35

Development of new business areas
Green Innovation Business Unit
Strategy1 Strengthen energy services

Strategy2 Deployment for PPA solar●In addition to urban redevelopment projects, the company
will strengthen its proposals for hospitals and factories.

●Proposals for large private sector electricity consumers●By winning orders for ES, the company will be able to win
subsequent orders for electrical and air conditioning andsanitation work.

■Image of the business scheme（SPC）
Energy Supply
kyudenko

Company Ａ■ Image of the business scheme
Customer

Customer（Large private sector electricity consumers
Local governments etc.）

urban
redevelopment
projects

Electricity, city gas, etc.
Implementing a highly
efficient system

SPC

hospitals（Customer・Kyudenko・Etc）

EV CarCharging
centeretc.

Off-siteand maintenance

PPA

factories

On-siteEquipment operation

Kyudenko
EMS

Heat source equipment, powerreceiving and transforming
equipment, etc.

Energy management

Company Ｃ●Proposal for the introduction of Kyudenko EMS

PPACompany Ｂ●Proposals to local governments to convert public facilities
to renewable energy

36

M&A and capital alliances

CENTRAL GENERALCHUORIKA KOUGYO Co.,Ltd.

DEVELOPMENT

Company Profile

Company Profile

Company Profile

・Location: Idabashi, Chiyoda-ku, Tokyo

・Location: Sugamo, Toshima-ku, Tokyo
・Business activities: Construction of disaster prevention
equipment, etc.
・Capital: 99 million yen

・Business activities: Real estate sales

・Number of employees: Approximately 160 (Group total)
・Business locations: Kanto area and nationwide
・Shareholding ratio: 100% (subsidiary)

・Location:Kawasaki-City,Kanagawa
・Business activities:
Recycling businessbusiness, etc.

Technology licensing business・Capital: 1,008 million yen

Environmental Consulting

・Establishment: 1959
・Number of employees: Approximately 160

・Establishment: 1948

JEPLAN,INC.

CO.,LTD.

(Group total)

Business
・Business locations:
Kitakyushu Hibikinada Factory

・Business locations: Expand to the wholecountry

Kawasaki Plant
・Establishment: 2007

・Shareholding ratio: 20.0%(Affiliates accounted for by the equity method)

Purpose of share acquisition

 Expansion of the Group's business domain（Acquisition and utilization of know-how in the disaster prevention field）
 Creation of new order opportunities through mutual collaboration（Synergy effects）
 Prevention of outflow of disaster prevention-related costs in the Company（Maintenance orders placed with target companies for properties constructedby the Company）

Purpose of share acquisition Purpose of share Tie-up of the residential portion of urban redevelopment
acquisition（Participation in PFI projects and other development
projects）


Expansion of orders and accumulation of construction
know-how in the condominium fieldProposing environmentally friendly new equipment forexisting condominiums undergoing large-scale repairs（Proposals for the introduction of the latest equipment,
including solar power generation, air conditioning control
equipment, information and communications

 Expansion of the Group's business（Contribution to the achievement of the goals of the medium-term

infrastructure, and disaster prevention equipment）



The company's efforts are in line withthe direction of "promoting
environmentally friendly urban
development," a key issue in our midterm management plan.



We believe that our technologicalcapabilities and know-how inrenewable energy and energy
conservation can greatly assist thecompany in its efforts to achieve zeroCO2 emissions at its plants and otherfacilities.

management plan）

37

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 the president38

Actual results of recruitment of human resources(Kyudenko individual) and workforce planning≪ Comparison in actual results of recruitment
for April 2021 with other companies≫≪ Actual results of periodic recruitment of engineers andskilled persons≫2015 2016 2017 2018 2019 2020 2021

Total
engineersand skilled
persons

2007～
2014

Around
200

241

262

344

384

342

336

387

High
schoolgraduates

Around
150

163

177

248

271

253

253

University
graduates

Around
50

78

85

96

113

89

83

Kyudenko

Large electricalconstruction
companies

Large HVAC
companies

Super general
constructors

Total in all
professions

411

300～390

90～100250～350

263

High school
graduates

263

Around200

Around10

Around10

124

University
graduates

148

90～18080～90

190～330

Mar. 2020

Mar. 2021

Mar. 2022

Mar. 2023

Mar. 2024

Mar. 2025

Increase or
decrease inplanElectrical work department

2,274

2,359

2,475

2,599

2,750

2,893

About+550

HVAC work department

1,138

1,188

1,269

1,355

1,435

1,517

About+320

Year-end workforce of electricaland HVAC

3,411

3,547

3,744

3,954

4,185

4,410

About+870

Power distribution line
department

1,642

1,566

1,618

1,632

1,641

1,666

About+50

Other

1,446

1,469

1,407

1,402

1,397

1,408

Employees of single
Kyudenko

6,500

6,582

6,769

6,988

7,223

7,484

About+900

Employees of group10,018

10,19812,000

About+2,000≪ Planned year-end workforce until FY2025 March≫

Total 8,200 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 3,100+

About 1,100=

About 4,200
39

Appendix

Corporate profile

Company name

Kyudenko Corporation

Established

December 1, 1944

Capital￥12,561 million

Listed market
Code

1st Section 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, 10 branches in Japan, 120 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: 10,198 persons (March 31, 2021)
41

Trend of dividends
For the fiscal year ending March 31, 2022,
we plan to pay an annual dividend of 100 yen per share.
130

Dividend policy

120
With
regard to distribution of profits, we seek to keep appropriate
financial strength and appropriately return profits to shareholders with110strengthening
management base for improving operating results andsecuring internal reserve necessary for further business expansion.
To100 satisfy expectations of shareholders, we continuously pay a stabledividend with the use of consolidated payout ratio 25% as a guide,90
comprehensively
taking into account business environment, operating
results and financial position.

100

100

100

100

Mar,2019

Mar,2020

Mar,2021

Mar,2022

90
10

80

70

70

■ Special■ Memorial

60

10
45

50

40

30

10

13
3

Mar,2013

Mar,2014

20

10

25
2
7

15

0

Mar,2011

Mar,2012

Mar,2015

Mar,2016

Mar,2017

Mar,2018

42

Details of diverse business models (facility work)business
model
item

Ⓐ Proposal and originalcontract type(Local based）Ⓑ Sub-contract type

Ⓒ Capital participation type・Capital participation in a project・Mainly small- and med-

① Feature

sized deals
・Order directly from the owner（prime contractor)

・Large sized deals
・Subcontractor of a generalcontractor

of collaboration with different
industries, and receiving an orderfor construction
・Construction proﬁt + Businessprofit according to the amount ofinvestment

Mainly Kyushu② Business
area

Urban areas such as
Kanto and Kansai
Fukuoka urban area

To Kanto and Kansai by M & A

Nationwide development

Business area expansion
to the whole country③ Sales④ Profit rate
⑤ Differentiation
strategy⑥ Rival⑦ Composition
ratio

Sales by project are small

Sales by project are large

Relatively higher

Relatively lower（Order directly from the owner）（Mainly subcontracted）

Sales by project are large
Different for each project

By having 110 sales offices throughout Overwhelming ability to collect

By participating from the project

Kyushu and Okinawa, we develop

workforce and ability of directplanning stage, we definitely

local-based sales by engineersconstruction

receive an order for construction

Local small and mediumsized enterprises
about４０％

Major competitors
about５０％

General contractor
and developer
about１０％43

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.

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

【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 Line46

【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 Connected

47

Post-2020 Prediction about industry
Construction demand will be supported by large-scale projects and renovation of aging infrastructure
built more than 50 years ago. The labor shortage will accelerate with the decline in the working age
population, with a rapid falloff in supply capability.
Real construction
investment(Trillions of yen) 非住宅建設
90
80

Past construction
investment amountNo. of constructionindustry employees

住宅建設

No. of constructionindustry employees(Thousands)

Tokyo Olympic (2021)

Correspondence to earthquake resistant structure ·Rebuilding / renewal demand of buildings
over 50 years after construction
Tenjin Big Bang Project (through 2024)
Waterfront Next (over 20-30 years)

民間土木
政府土木

70

70
700

Linear Shinkansen Line 60
600
opened to Osaka(2045)

60

50
500

50

40
400

40

Supported by redevelopment demand
Buildings constructed during the period of higheconomic growth have passed their useful lives

30

30
300
20
200

20

Working age population Working age population Working age population
Base: 74.1 million
77.28 million
Peak: 87.26 million

10(2015)(1995)(2020)

0

年1960

80
800

1970

1980

1990

2000

2010

2020

2030

Working age population
Forecast: 45.29 million(2065)

2040

10
100
00

2050

度

48