Overview of the previous mid-term management plan(2015～2019)＜Outline of the Previous Mid-term management plan＞
Main Theme

Challenge to a Further Growth～To the next growth stage～

Growth strategy

Strategic Policies“ Sales force ” to meet trusts and expectations of clients

Establish stable foundation in Kyushu“ Technological force ” to win the cost & quality competition

Strengthening business in the metropolitan area
The development of human resources“ On-site Capabilities ” to obtain more projects and profit efficiency“ Growing Force ” for future success＜ Results in the final year of the previous medium-term management plan＞
Numerical
target atMar.2020

Sales
Gross Profit
Ratio
Operating Profit
Ratio

Results inMar.2020

Status ofachievement

400 billion yen 429 billion yen

Over 15%Over 9%Achieved

14.0% FY2016&2017 achieved

8.4%

FY2016＆2017＆2018achieved

ResultsIssue

１）Riding the tailwind of booming construction demand・Expansion of orders outside the Kyushu region
・Expanding the air-conditioning pipe business byleveraging the strengths of the comprehensive
equipment business・M&As of construction companies

１）Challenges in developing human resources andimproving productivity in response to the rapid
increase in the volume of construction２）Thorough cost control by the Technology
Management Department.
Improving profit margins through theestablishment of the Q-mast Company.
３）Strengthen construction capabilities, including
increased hiring of engineers

２）Increased overtime work and turnover⇩Concerns about future deterioration in quality andthe risk of disasters３）Profit margins declined in the final stages ofthe fiscal year, although the target was achieved
once.

⇩expansion of one's business

ＲＯＥ

Over 14%14.0%

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Changes in previous years
Sales

Operating Profit Ratio

500

408

Target value

400

311

200
249

247

279

239

316

9.0

10.0

4.0

previous medium-term
management plan

5.3
2.5

0

1.8

2.6

（2015-2019）

0.0

Gross Profit Ratio
16.0

15.2

Target value

14.0Over 15%

ROE
15.7

14.8

14.5

12.0
11.7

10.0
8.0

8.4

8.1

previous medium-term
management plan

0.7

2.0

（2015-2019）

9.0

Over 9%

6.0

342

9.6

Target value

8.0

361

400 billion yen

300

100

429

9.4

7.8
9.1

9.1

previous medium-term
management plan
（2015-2019）

6.0

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14.0

18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0

16.7

17.8

16.8

15.6

14.0

Target valueOver 14%
4.2
1.5

3.1

11.9
3.9

previous medium-termmanagement plan
（2015-2019）1

New mid-term management plan(2020～2024）＜Premise＞
The impact of the new coronavirus infection on the Group's performance is not reflected because it is difficult to estimate thescale and duration of the infection.

＜Forecast of the business environment surrounding the group＞（１）Domesticconstruction market

Large-scale projects in central Tokyo and the Kansai region
Tenjin Big Bang and Hakata Connected in Fukuoka

A sharp decline is unlikely（２)Solar plant
construction work

It is expected to come to an end in the future, but theexistence of concrete projects, including the Uku island
mega solar

The amount of constructionin the next two to three
years is expected to beadequate.

（３）working
environment

The worsening shortage of skilled construction workers andthe use of the latest technology

The movement to reform theway we work is in full swing

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2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.

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3

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
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Improving corporate value

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

final year

500

429

81.0
Solar plant
construction(17.0）

Renewable energy business

67.8

Solar plant
construction (59.3）

191.0

Electricalconstruction

157.7
HVAC

143.0

129.9
Power distribution line

50.0

46.9

35.0

Others 26.7

Mar.2020

Mar.2021

Mar.2022

Mar.2023

Mar.2024

Mar.2025

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

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5Three reform１）Reform of construction capability≪ Specific issues to be addressed ≫Strengthen hiring of engineers based on a long-term workforce
planReduce the turnover rate of young engineers by reviewing
technical education
Establishment of a system to ensure the timely and optimal
deployment of all technicians
Review of the construction management system by strengthening
and utilizing the technical management department
Promotion of multifunctional worker
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6

Three reform２） Reform of productivity≪ Specific issues to be addressed ≫Review of company-wide and departmental training systems
Achieve optimal personnel rotation for the entire company
Promote rationalization and labor saving through the use ofcutting-edge technology and IT
Realization of business reforms

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7

Three reform３） Reform of Governance≪ Specific issues to be addressed ≫Implement measures to prevent recurrence of fraud
Strengthening and Thoroughly Implementing a Governance
System Based on the Kyudenko Corporate Governance
Guidelines

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8New mid-term management plan(2020～2024）(on going efforts)

Issues continuing from the previous
mid-term management plan
１）Deepen measures to improve profit margins
２）Strengthen and expand the order base of the domestic

equipment construction industry
３）Strengthen the profitability of power distribution line work４）Development of new business areas
５）Creating an Attractive Workplace Environment６）Improving corporate value

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9New mid-term management plan(2020～2024）(Relevance to the SDGs)
We will steadily advance the initiatives set forth in the Medium-Term Management Plan and contribute tothe realization of the SDGs, which have a high degree of affinity with the businesses of the Group,
through our business activities.

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