Securities code：1959

FY ended March 2021, Third quarter end

Outline of balance sheet

Current
assetsEnd ofMar. 2019

End ofMar. 2020

End of Dec
2020(57.7%)(58.7%)(56.4%)

206,268

216,269

198,875

Fixed assets

151,002152,212

153,800

Total assets

357,271368,482352,675

142,144

142,723

121,266

32,94928,31624,187

Current
liabilities
Fixedliabilities
Total
liabilities

Total net
assetsTotal liabilities
and net assets(42.3%)(100.0%)(39.8%)(9.2%)(41.3%)(100.0%)(38.7%)(7.7%)(43.6%)(100.0%)(34.4%)(6.9%)

175,094

171,039

145,453

182,176

197,442

207,221(100.0%)(100.0%)(100.0%)(49.0%)(51.0%)

357,271(46.4%)(53.6%)

368,482(41.2%)(58.8%)

352,675

Increase/decrease▲17,394＋1,588(Million yen)
Main factors behind increase/decrease
Trade notes and accounts receivable ▲39,503

Investment securities +4,678▲15,806▲21,456▲4,129Trade notes and accounts payable ▲32,296

Net defined benefit liability ▲2,652▲25,585＋9,779▲15,806

Retained earnings +6,746

1

Outline of P/L March 2020
March 2019
ResultSales

408,143(100.0%)Result428,939

March 2020

Year-onyear(Million yen)

Plan (2019.4.26)

Progress

105.1%

418,000

60,093

99.2%

62,70095.8%(100.0%)(100.0%)102.6%

Gross profit

60,561

Operating profit

36,74736,02298.0%

38,00094.8%

Ordinary profit

39,92438,64396.8%

40,70094.9%

Net profit

26,691

26,245

98.3%

27,20096.5%

Net profit per share(14.8%)(9.0%)(9.8%)(6.5%)¥375.17(14.0%)(8.4%)(9.0%)(6.1%)¥370.00(15.0%)(9.1%)(9.7%)(6.5%)¥382.312

Factors of change in OP March 2020
（billion yen）

40

＋3.0

38
36
34
32
30

D

36.7
Operating
Profit in

A
▲0.6
Bonus
increase

B
＋0.3

C
▲0.2

E

:Increase

▲3.7

Sales
increased in Depressionof grosselectrical &profitratio
HVAC &
inelectricalsolar plant& HVAC
construction construction

Power
Decrease ofother fixed cost distribution
line work(overheadcost) in SG&A
Gross Cost

:Decrease

F
＋0.5

Other
business

36.0

Operatingprofit inMarch,2019

March,2020

Main factors failed
achieve plandecrease in profit3Outline of P/L March 2021, 3rd quarter end
March 2020,

3Qend Result
Sales

279,872(100.0%)March 2021,

3Qend Result

266,597(100.0%)Gross profit

36,816

Operating profit

18,761

18,898

Ordinary profit

21,057

20,940Net profit

14,31913,845¥201.80¥195.43

Net profit per share(13.2%)(6.7%)(7.5%)(5.1%)

36,863(Million yen)

Change compared to the same
period of the previous year
Increase/decrease△13,274

Rate ofchange95.3％+47100.1％(7.1%)+137

100.7％(7.9%)

△117

99.4％

(5.2%)

△473

96.7％

(13.8%)-

4

Factors of change in OP March 2021, 3rd quarter end（Billion Yen）

25

A

20

15

E

Bonus decrease

＋0.3

18.7

Operatingprofit in March,
2020
3Q end▲0.1▲0.2

Increase of other
Fixed cost(overhead cost)in SG&A Gross
Cost

Power
distribution
line work

B

C

▲0.5
D

Decrease in
sales

Increasing profit
margins on
construction

＋1.1

▲0.4
F

Other business

18.8（ 3Q-on-3Q+0.1 ）

Operatingprofit in March,
2021
3Q end105

Breakdown of construction sales and Factor of gross profit ratio Mar.2020 Full Year
（Kyudenko individual：excluding power distribution line work）

Average profit ratio

23.4

24.9

24.2

21.8

21.8

Sales fromNot delivered
items

Project Not delivered（Percentage of completion method）

80,49831%

102,046

36%

Sales fromdelivered items

Project delivered（Percentage-of-completion method）
74,202
79,87030%
27%
Project delivered（Completed-contract method）

102,534

2017’0339%

103,546

2018’03400,000

total 315,566

18.0

total 279,794

total 262,902

Construction sales（Million yen）

19.1

18.3

17.7

25.5

37%

17.8

total 305,015
122,858

40%

83,771

27%

98,38633%

14.9

116,004

300,000

37%
200,000

109,69035%
100,000

89,87228%
0

2019’032020’036

Breakdown of construction sales and Factor of gross profit ratio Dec.2020（Kyudenko individual：excluding power distribution line work）

Average profit ratio

26.3
24.2

16.9

total 175,925

24.7

total 184,114

Sales fromNot delivered
items

Sales fromdelivered items

Project delivered（Percentage-of-completion method）
32,94436,992
19%
20%
Project delivered（Completed-contract method）
60,96957,20931%
35%

2018’12

17.1

total 202,061

Project Not delivered（Percentage of completion method）
49%
89,91382,01246%

2017’12Construction sales（Million yen）
300,000

18.4

18.0

26.6

25.5

14.2

97,124

17.4

15.5
total 198,662

48%

96,806200,000

49%
100,000

50,491

25%

51,37526%

54,44627%

50,48025%

2020’127

2019’120Order received / Sales by department
Mar. 2020 Full year
(Million Yen)

Sales of each department■2018.3■2018.3■2019.3■2020.3(Million Yen)

Orders of each department■2019.3

166,344
165,667

153,447■2020.3

134,955

167,040
162,646
156,104

126,573

Power
Electrical work HVAC work
distribution linework

150,469

120,414101,164

47,706
46,90046,633

176,545

59,306
48,37945,157

Solar plant
construction
work

126,801

47,57447,453
46,537Power
Electrical work HVAC work
distribution line
work

50,76445,332

Solar plant
constructionwork

8Order received / Sales by department Dec. 2020
(Million Yen)

Sales of each department■2018.12■2018.12

150,000■2019.12■2019.12

150,000■2020.12■2020.12

118,310
117,818
105,963

103,71498,44196,019106,061
95,84987,80680,72877,842Power
distribution
line work

88,02343,51736,90035,27533,814 34,034

0(Million Yen)

Orders of each department

31,565

Electricalwork

HVAC work

Solar plant
construction
work

36,57834,553038,57334,874Power
distribution
line work

23,423
14,501

Electricalwork

HVAC work

Solar plant
constructionwork

9Order received / Sales by customer
Mar. 2020 Full year
(Million Yen)

Sales of each customer■2018.3■2018.3■2020.3■2020.3■2019.3(Million Yen)

Orders of each customer

442,510■2019.3

326,676

331,538

305,300

306,607

263,796

48,79434,72547,88147,53934,233Kyushu ElectricPower Co,

48,65547,98147,30628,428Govermment/Public

Privatecompanies

Kyushu ElectricPower Co,

30,57030,167

17,208Govermment/Public

Privatecompanies

10Order received / Sales by customer Dec. 2020
(Million Yen)

Sales of each customer■2018.12

250,000■2019.12

213,553■2020.12

210,763(Million Yen)

Orders of each customer■2018.12

235,996■2019.12
250,000■2020.12

187,007

35,00733,945 33,483

0

Kyushu ElectricPower Co,

183,663

36,07135,60934,492

18,28817,926
9,683
Govermment/Public

228,326

25,401

25,207

9,764

Privatecompanies

0

Kyushu ElectricPower Co,

Govermment/Public

Privatecompanies

11Order received / Sales by region Mar. 2020 Full year

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

Sales of each region■2018.3■2019.3 ■2020.3

202,906
178,698(Million yen)Orders of each region■2018.3■2019.3 ■2020.3

218,328
199,179

197,665

194,445

77,59368,09543,862

Kyushu68,47164,96962,97426,852
19,26817,275
5,198 5,259
3,963

Tokyo Tohoku
and Chubu Areas

Osaka Area

Overseas

Kyushu21,567
6,004
20,574
17,485 5,742
5,247

Tokyo Tohoku
and Chubu Areas

Osaka Area

Overseas12Order received / Sales by region Dec. 2020

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

Sales of each region■2018.12 ■2019.12 ■2020.12(Million yen)Orders of each region■2018.12 ■2019.12 ■2020.12

200,000

200,000

167,243
144,924130,181
126,193

124,711

114,970

56,14152,49640,877

48,59948,39930,4500

Kyushu13,978
10,415 12,446

Tokyo Tohoku
and Chubu
AreasOsaka Area

3,152
2,949
2,813
Overseas

0

Kyushu13,824
4,705
12,082
12,034 1,934
1,050Tokyo Tohoku
and Chubu Areas

Osaka Area

Overseas13Order received / Sales by region Mar. 2020 Full year
(Solar plant construction work)

Sales of each region■2018.3■2019.3 ■2020.3

40,189(Million yen)

48,672

Kyushu■2018.3■2019.3 ■2020.3

155,891

41,12927,0599,467(Million yen)Orders of each region

6,306 6,301 8,630
4,332
1,883

Tokyo Tohoku and Chubu
Areas

Osaka Area

13,316
Kyushu27,365
4,891

19,6084,743 4,650

Tokyo Tohoku and Chubu
Areas

1,045

Osaka Area

14

Order received / Sales by region Dec. 2020
(Solar plant construction work)(Million yen)

Sales of each region■2018.12 ■2019.12 ■2020.12

50,000■2018.12 ■2019.12 ■2020.12

50,00032,68228,931

26,18018,524

14,487
3,791
2,966

0

Kyushu(Million yen)Orders of each region

Tokyo and Chubu
Areas13,324

10,506

9,036

1,594
1,251
Osaka Area

5,521

9,191

7,323

1,658

605
0

KyushuTokyo and Chubu
Areas

907

Osaka Area

15

Year-end amount of works on hand

Order stock of each department■2018.3 ■2019.3 ■2020.3

132,519 129,498(Million yen)

214,542

New orders in FY ended March 2020
Image

121,420
113,266
100,350
97,59897,304

119,138

1,514
1,121840

PowerElectrical work HVAC work
distribution
line work

Solar plant
construction
work

16

Situation of works on hand Dec. 2020
(Million yen)Order stock of each department■2018.12 ■2019.12 ■2020.12
180,000

185,527

154,318
143,975

New orders in FY ended Dec. 2020
Image

126,660129,464
125,743 120,561

107,358

83,826

2,354

0

2,143
1,833

Power
distribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

17

Plan for fiscal year

Plan for March 2021
March 2020
ResultSales

428,939(100.0%)March 2021

413,000(100.0%)Gross profit

60,093Operating profit

36,02232,000Ordinary profit

38,64334,00026,24522,500Current (quarter) net
profitCurrent net profit per
stock
Dividends(14.0%)(8.4%)(9.0%)(6.1%)¥370.00
100円

Interim ¥50

56,400(13.7%)(7.7%)(8.2%)(5.4%)

Plan for March 2021

Year-on-Year

96.3％
93.9％
88.8％
88.0％
85.7％

¥317.59(Million yen)

3Q Result

266,597(100.0%)36,863(13.8%)

18,898(7.1%)

20,940(7.9%)

13,845(5.2%)

Progress

64.6%
65.4%
59.1%
61.6%
61.5%

¥195.43¥100

Interim ¥50

19

Orders & Sales plan by department(Million yen)

Sales of each department■2019.3 ■2020.3

240,000■2021.3（plan）■2019.3 ■2020.3

175,200
162,646
156,104
150,469

78,00059,306

0

48,37945,900Power
distribution
line work

Electricalwork

HVAC work

176,545

126,801
125,500

121,700

46,90047,706■2021.3（plan）

240,000

166,344
165,667
152,400
134,955
126,573(Million yen)Orders of each department

Solar plant
construction
work

47,57447,453045,33244,600Power
distribution
line work

Electricalwork

29,500HVAC work Solar plant
construction
work

20

Analysis of works on hand
（Kyudenko individual : excluding power distribution work）

Fourth quarter opening construction works on hand by delivery schedule timing

Total 329.4

Deliver on after next FY

169.8

Deliver on next FY

106.8

Deliver on FY

Total 352.7
142.3

154.7

Total 317.1
127.6

133.8

Works on hand（Billion yen）

Total 393.0
244.2(+116.5)

97.5(▲36.3)

52.8

55.7

55.7

51.3
(▲4.4)FY 2017 4Q

FY 2018 4Q

FY 2019 4Q

FY 2020 4Q

21Analysis by scale of order(Kyudenko individual : excluding power distribution work）

73,695■2017.12 ■2018.12 ■2019.12 ■2020.12

33,63438,562

32,47673,561(Million yen)

64,834 63,355

27,875100～300 million yen

Under 100 million yen
22

Investment in Power Operations

Investment in Power Operations (Solar Power Plants)
Mega solar power plant

Okayama Hyogo

Ishikawa

Miyagi
Fukushima

Gotou
Hiroshima

Deals operated by group

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

Amami

Nara Mie

Aichi

24

Investment in Power Operations (Solar Power Plants)
Deals through investment in equity

Deals operated by group(make capital investment and record the entire operation to otheroperations sales)

Depreciated at the declining balance method

In operation

Under
construction
Plan

Total

Number ofpower
plants49-

49

Generation
capacity(the entire
operation)

92MW

-

92MW

Generation
capacity(that equal tothe equity)

87MW

-

87MW

2.0 to 2.4 billion yen at its maximum(acquire investment securities and record an amount equal to the equity to nonoperating revenues)
Depreciated at the straight line method

In operation

Number ofpower
plantsUnder
construction
Plan

Total

49

Generation
capacity(the entire
operation)

540MW

Generation
capacity(that equal to theequity)

150MW

5

687MW

141MW

54

1,227MW

291MW

-

-

-

1.8 to 2.0 billion yen at its maximum

From April to December, a total of 42 controls on output were issued by Kyushu Electric Power Company.
The average number of controls at our power plants was 12.

The total amount of lost profits for the group was about 350.0million yen.

25

Investment in Power Operations (Wind Power Plants)
Fukui

風力発電所

Miyagi
Fukushima

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

In Operation

5

Under
construction

-

-

-

Plan

-

-

-

Total

5

38MW

38MW

38MW

38MW

(acquire investment securities and record an amount equal to the equity to
non-operating revenues)
Depreciated at the Mainly declining balance method
Number of
power plants

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

Generation capacity(that equal to theequity)Deals through investment in equity

Gotou

Deals operated by group- In Operation

Generation capacity(the entire
operation)

Aichi

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

26

Investment in Power Operations March 2020 Result
Deals operated by group■Solar Power Plants ■Wind Power Plants■ Operating profit

616

962

1,144

1,449

Deals through investment in equity(Million yen)

1,556

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

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

Total 1,583

Total 4,282

Total 1,450

Total 3,619

2,702

3,233

3,508

4,205

Total 774

4,031

Total 292
Total 1
215

917
2016'03

1,048
2017'03938
2018'03883
2019'03790
2020'03

76

369

-368
2016'032017'03

1,412

1,447

876
-101
2018'0338

2019'03135

2020'0327

Investment in Power Operations March 2021, 3rd quarter end
Deals operated by group■Solar Power Plants ■Wind Power Plants■ Operating profit

890

1,132

1,294

1,412

Deals through investment in equity(Million yen)

1,505

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

Total
Total 4,038
Total 3,891 3,824

Total 3,463

Total 1,127

Total 3,247

2,559

2,860

Total 1,042
3,458

3,342

Total 588

3,240

Total
▲116
208

688

2016'12602

2017'12579

2018'12549

2019'12584

2020'12-325
2016'12597-92017'12

1,055

Total 943

1,138

957

-12

-11

-14

2018'122019'122020'1228

Mid-term management plan
(Published on April 28,2020.)• With the spread of the COVID-19 infection on a global scale, the risk of an economic downturn is increasing. At thistime, it is difficult to estimate the impact on the Group's business performance in terms of scale and duration, so
this medium-term management plan does not reflect this impact.
• We will closely monitor future trends and review this medium-term management plan as necessary.

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

500 billion yen

Ordinary profit

50 billion yen

margin

ＲＯＩＣ

Over 10.0 ％（Breakdown of construction sales）
Power distribution line work
Electrical･HVAC work
Renewable Energy Business,etc.
Other business

50 billion yen

334 billion yen
81 billion yen
35 billion yen

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

30

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

construction capability

Three reform
productivity

governance

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

Strengthen and expand the orderbase of the domestic equipment

Strengthen the profitability of power
distribution line work

Development of new business areas
Creating an Attractive Workplace
Environment

Improving corporate value

31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

Others 26.7

Mar.2020

Mar.2021

Mar.2022

Mar.2023

Mar.2024

35.0

Mar.2025

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

32

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 andcontribute to the realization of the SDGs, which have a high degree of affinity with the businesses of
the Group, through our business activities.

33

Actual results of recruitment of human resources(Kyudenko individual) and workforce planning≪ Actual results of periodic recruitment of engineers andskilled persons≫Total engineers
and skilled
persons
High school
graduates
University
graduates

2007～
2014

2015 2016

Around200

241

Around150

163

Around
50

78

262
177
85

2017 2018 2019
344
248
96

384
271

113

342
253
89

2020

≪ Comparison in actual results of recruitment for April
2020 with other companies≫

336
253
83

≪ Planned year-end workforce until FY2025 March≫

Number of
construction
managers

Around10250～350250～320

University
graduates

103

100～160

70～100Mar. 2025

Increase or
decrease in
plan

1,138

1,192

1,269

1,355

1,435

1,517

About+320

2,340
3,532

1,642

1,612

1,446

1,417
6,561

10,018

2,475
3,744
1,618
1,407
6,769

2,599
3,954
1,632
1,402
6,988

Total 8,100 employees in technical field of total 10,000
Number ofsite
technicians

Around200

70～100Mar. 2024

6,500

Employees of group330～360

Mar. 2023

3,411

Employees of single
Kyudenko

Super general
constructors

Mar. 2022

Year-end workforce of electricaland HVAC

Other

253

High school
graduates

Large HVAC
companies

Mar. 2021

2,274Power distribution line
department

356

Total in all
professions

Large electricalconstruction
companies

Mar. 2020

Electrical work department
HVAC work department

Kyudenko(Kyudenko)

About 2,100

About 3,000(Subsidiaries)++

About 2,000

About 1,000

=

=

2,750
4,185
1,641
1,397
7,223

2,893
4,410
1,666
1,408
7,484

12,000Around10

About+550
About+870
About+50

About+900

About+2,000

About 4,100
About 4,000

34Digital Transformation
・The DX Promotion Department was established to strengthen the Group's DX promotion
structure. (October 1, 2020)

・Initiate the development of new technologies such as IT and IoT to improve productivity.
・Create new innovations across the business.

Promotion of DX

Transforming the way we work.
『Promoting digitalization at
the workplace level』● Streamline and automate current
systems and operations with thelatest IT technology.

● Utilize IT to connect the head officewith the work site in real time toshare information on various aspects
such as safety, construction quality,
and construction management.

≪Main Initiative Themes≫■We will create a database of the projects we have worked
on so far. We will also develop AI and use it to support
design changes.

■Improving productivity through the development of newtechnologies such as AI, IoT and BIM.

■Promotes telework by using mobile devices and implements
innovations in the way we work.

Create new
business models.
『Established a competitive
advantage』●Creation of new businesses.

●Business Model Transformation.
●Establishing new businesses by
providing high quality, highvalue-added services.

● change in the way we work.

35

Digital Transformation ～directionality～
Introduce advanced technologies such as AI and IoT to increase the sophistication, labor savings, andefficiency of work, education, and training related to design and construction management, etc., and tocreate new businesses and business models that utilize digital technologies.
AI Surveying and Construction
Management Drones
Preparation of construction
drawings（AI.BIM/CIM）

AI Construction
Management System

Drones for material transport
Remote operation
Robots and powered suits(construction equipment
for construction work
and work vehicles)

Advancement of business operations
Collection, storage and analysis of and creation of new business
Virtual hands-on training facilities.
building and equipment data
through
digitaltechnology
Training on the installation
Detection and diagnosis
of signs of failureof power distribution lines
using VR goggles

Health Support Services

Construction Management
Training Using AR Smart Glasses

36

Energy Service Business・Established an independent and exclusive subsidiary to develop the ES
business, which is set out in the Medium-Term Management Plan.
Overview of the new company and ES business scheme
Capital

5 million yen

Business Area

throughout Japan

Establishment
社名
Business
Description

Investor

July 2020.

Start of business

Kyudenko

August 1, 2020.

Japan Energy Consulting Co.
Provision of technical and operational know-how on energy use in buildings, etc. andconsulting

customer

information
consulting fee

consulting
Japan Energy Consulting Co.

(100% owned by theCompany)

matching
EPC order

information
know-howenergy supplier

Design estimate support fee

design fee

ES BusinessCompany37

Energy Service Business ～directionality～
We will expand our business beyond the construction of electricity, water, communications
and other infrastructure for daily life to include the development of smart cities and othercomfortable urban areas and the provision of local public services, and we will evolve into a
company that provides total support for the energy infrastructure and services of local
communities.
Participation in urban development
such as smart cities

Provision of local energy supply
and public services

Construction of wastewater
Pursuit of electrical, HVAC and garbage treatment facilities
and distribution line installation

Step 1
Community Energy
Equipment
Company
Leave the energy
equipment
to Kyudenko.

Step 2

Regional Utility
Facility Company
Leave public
infrastructure
facilities to Kyudenko.

Step 3
Local Community
Development
Company
We can also help
you build
your community.

Step 4

Regional total
service company
Please contact Kyudenko
for anything in the area.

38

Appendix

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

Average profit ratio

26.2

25.5
16.2
15.6

15.4

Sales fromNot delivered
items
Sales fromdelivered items

Project Not delivered（Percentage of completion method）

51,760

Project delivered（Percentage-of-completion method）

7,838

35,721
7,036

62%

12%

26%
Project delivered

14,69918,590（Completed-contract method）

2020’1Q

2020’2Q

120,000

100,000

16.0

Total 78,189

14.8

Total 57,456

28.3
26.6

80,000Total 63,017
66%
10%

24%

60,00039,103

62% 40,000

6,722

11% 20,000

17,1912020’3Q

27%

0

40

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

Ease ofchangeEarly in the projectstage, design changes
are easy

Aim to participate inprojects at the basic andimplementation design
stage

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

administration（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

order strategy

Kyudenkodetailed design

construction

Kyudenko

construction※Technical Proposal

design office・Kyudenko※Technical Proposal

Kyudenko41

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

住宅建設

Past construction
investment amountNo. of constructionindustry employees

No. of constructionindustry employees
Correspondence to earthquake resistant structure·(Thousands)

Tokyo Olympic (2021)

Rebuilding / renewal demand of buildings
over 50 years after construction
Tenjin Big Bang Project (through 2024)
Waterfront Next (over 20-30 years)
Osaka・Kansai Expo(2025)

民間土木
政府土木

70

50
500

50

40
400

40

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

30
20

Working age population
Working age population
Peak: 87.26 million

10

年1960
度

70
700

Linear Shinkansen Line 60
600
opened to Osaka(2045)

60

0

80
800

(1995)
1970

1980

1990

2000

Base: 77.28 million(2015)

2010

2020

2030

30
300
20
200

Working age population
Forecast: 45.29 million 10
100(2065)

2040

2050

00

42

【Positional relationship】
Fukuoka Waterfront Next, Tenjin Big Bang, Hakata Connected
Relaxation of height restriction
38 hectares in the waterfront area
(70m→100m)
1.7 hectare 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
Showa Street
Meiji Street

Tenjin area

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

Hakata Station area

10
minutes tothe airport
5 minutes
Fukuoka City Subway Nanakuma Line43

【Project contents】
Fukuoka Waterfront Next, Tenjin Big Bang, Hakata Connected
Project①Tenjin Big Bang

②Fukuoka
Waterfront Next

③Hakata Connected

Purpose

Period and scale

・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 2024
・Total floor area
757,000㎡
・Reconstruction ofbuildings in Tenjin
area (30 buildings)

・Connect the vitality andbustle of Hakata Station, thegateway to Kyushu, to thesurrounding area.

・Through 2028
・About 80ha of about
500m in radius from
Hakata Station
・Reconstruction ofbuildings around
Hakata Station (20buildings)

・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,
hotels44

<Differentiation Strategy of Kyudenko>

Details of diverse business models (facility work)business
model

item

① Feature② Businessarea③ Sales④ Profit rate
⑤ Differentiation
strategy⑥ Rival⑦ Composition
ratioⒶ Proposal and originalcontract type(Local based）

・Mainly small- and medsized deals

・Order directly from the owner（prime contractor)

Mainly Kyushu
To Kanto and Kansai by M & AⒷ Sub-contract type・Large sized deals

・Subcontractor of a generalcontractor

Urban areas such as
Kanto and Kansai

Fukuoka urban area

Business area expansion
to the whole country

Sales by project are small

Sales by project are large（Order directly from the owner）（Mainly subcontracted）

Relatively higher

Relatively lowerⒸ Capital participation type・Capital participation in a projectof collaboration with different

industries, and receiving an orderfor construction

・Construction proﬁt + Businessprofit according to the amount ofinvestment

Nationwide development

Sales by project are large
Different for each project

By having 110 sales offices throughout Overwhelming ability to collect

By participating from the project

local-based sales by engineers

receive an order for construction

Kyushu and Okinawa, we develop
Local small and mediumsized enterprises
about４０％

workforce and ability of direct
construction

Major competitors
about５０％planning stage, we definitely
General contractor
and developer
about１０％4545