Kyudenko Corporation
FY ended March 2022, First quarter end

Securities code:1959

Outline of balance sheet(Million yen)

End ofMar.2020

End ofMar.2021

End of June
2021

216,269

212,574

189,213

Fixed assets

152,212

153,957

151,993

Total assets

368,482

366,532

341,206

Current
liabilities

142,723

125,361

102,004

Fixedliabilities

28,316

19,42918,788

Total
liabilities

171,039

144,790

120,793

Total net
assets197,442

221,741

220,413

Total liabilities
and net assets

368,482

366,532

341,206

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%)(55.5%)(44.5%)(100.0%)(29.9%)(5.5%)(35.4%)(64.6%)(100.0%)

Increase/decrease▲23,360▲1,964Main factors behind increase/decrease

Trade notes and accounts receivable ▲40,395
Cash on hand and in banks ＋11,218

Investment securities ▲3,269
Asset for retirement benefits ＋930

▲25,325▲23,356▲640

Trade notes and accounts payable ▲23,554

Long-term debt ▲573

▲23,997▲1,328

Unrealized holding gain on securities ▲1,741▲25,3251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, 1st quarter end(Million yen)

Sales

Gross profit

Operating profit

March 2021,

March 2022,

1Qend Result

1Qend Result

79,43970,690/decrease

Rate ofchange

89.0％

＋607

106.2％

4,323

＋460

111.9％(100.0%)9,860

10,4673,862(4.9%)

Increase▲8,749(100.0%)(12.4%)

Change compared to the same
period of the previous year

(14.8%)(6.1%)

Ordinary profit

4,655

5,045

＋389

108.4％Net profit

3,119

3,808

＋688

122.1％¥44.03¥53.75

Net profit per share(5.9%)(3.9%)(7.1%)(5.4%)-

4

Factors of change in OP March 2022, 1st quarter end（Billion Yen）

C

5

Improvement inProfit margin

▲0.2

A

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

4

▲0.2

3.8
3

Operatingprofit in March,
2020
1Q end

D
Power

＋1.6

distribution
line work▲0.2

E
Other business

4.3

▲0.5

B

Operatingprofit in March,
2021
1Q endDecrease in
sales

2
5

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 Jun.2021（Kyudenko individual:excluding power distribution line work）

Average profit ratio

100,000

33.4

26.2

25.1
24.4

24.2

24.4

21.4

18.1

17.9

15.4

16.3
Total 61,430

Total 49,123
Sales fromNot delivered
items

Project Not delivered（Percentage of completion method）37,195

Sales fromdelivered items

7,514

31,446 62%

Project delivered（Percentage-of-completion method）

15%

17,745 36%

3,336

6%

16,170 32%

Project delivered（Completed-contract method）

2017’06

2018’06

8,809

80,00018.6
Construction sales

14.8
Total 57,456

Total 50,952

23,864 49%

27.2

26.2

（Million yen）

Total 50,451

60,00061%

35,72162%

28,885 58%

14%

7,036

12%

5,755

11%

14,699 26%

15,81131%

15,426 25%

40,00020,00002019’06

2020’06

2021’06

8

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
341,771
51,951
15.2％

Sales
Gross profit
Gross profit ratio

360,872
56,65915.7％

408,143
60,561
14.8％

16.6

16.5

428,939
60,09314.0％

20.0

Gross profit ratio

1Ｑ results

391,901
56,631
14.5％

70,69010,46714.8％

18.0

150,000

15.9

15.8

15.6

15.1

15.6
15.1

14.9

15.6

15.8

14.8

14.7

100,000

16.0

13.9

13.7

13.6

14.0

13.4
13.1

13.0

12.5

12.4

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

2022’34Q

9

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 Jun. 2021

(Million yen)

Sales of each segments■2019.6 ■2020.6 ■2021. 6

70,000(Million yen)Orders of each segments
70,000■2019.6■2020.6■2021.6

43,936
38,11335,33529,623
26,481
28,87027,782 25,585

34,70534,88426,50920,70911,333
11,321
10,514

11,707
10,122
9,226

0

Power
distribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

12,054
11,725
11,078

7,968

5,991
5,105

0

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 Jun.2021(Million yen)

Sales of each customer■2019.6 ■2020.6 ■2021.6(Million yen)Orders of each customer■2019.6 ■2020. 6 ■2021.6

120,000

120,000

78,28362,761
62,66759,897

53,956

11,497

11,185
10,494
4,969

1,966

12,235 11,664
11,094

3,782

0

Kyushu ElectricPower Co,

Govermment/Public

Privatecompanies

76,921

2,321

7,113

7,875

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 Jun.2021(Electrical & HVAC work excluding Solar plant construction work)(Million yen)

Sales of each region(Million yen)Orders of each region■2019.6 ■2020.6 ■2021.6■2019.6 ■2020.6 ■2021.6

80,00080,00054,96049,634
41,77336,73233,94433,132

15,027
14,656

16,04915,43010,7134,127
3,690 4,822
2,930

4,602
1,253
3,777
2,862
1,784
567

0

KyushuTokyo Tohoku
and Chubu Areas

Osaka Area

Overseas

17,118

0

3,052

▲105

KyushuTokyo Tohoku andChubu 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 Jun.2021(Solar plant construction work)(Million yen)

Sales of each region■2019.6 ■2020.6

18,000■2021.6(Million yen)Orders of each region
18,000■2019.6 ■2020.6■2021.6

10,778

7,334

6,934

5,513
3,610
3,328

2,287
2,071
868 1,117

1,110
60

0

KyushuTokyo Tohoku andChubu Areas

2,469

Osaka Area

425

1,526
199

208

279

0

KyushuTokyo Tohoku andChubu 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 order stock Jun.2021(百万円)

Order stock of each segments■2019.6

360,000■2020.6

New orders in FY ended Jun.2021■2021.6

Image

Image

209,525
174,973

180,000

137,868

1,573

1,906

125,603 129,644 123,029
124,331
114,190
93,564

Image

1,938

0

Power
Electrical work HVAC work
distribution
line work

Solar plant
construction
work

19

Plan for March 2022
(Million yen)March 2021
ResultPlan for March 2022
March 2022

Year-on-Year

391,901

410,000

104.6％

Gross profit

56,63160,000105.9%

Operating profit

32,99835,000106.1%

Ordinary profit

35,90637,700105.0%

Current (quarter) net profit

25,04225,500101.8%

Current net profit per stock¥353.48¥359.94

100円

¥100

Sales

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

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

Interim ¥50

20

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

21

Analysis of works on hand

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

Works on hand（Billion yen）

Total 415.8

Total 310.6
Deliver on after next FY

Total 326.7

Deliver on next FY
82.5
Deliver on FY
91.0
FY2017 2Q

Total 321.2

91.7

92.7

135.0

108.9

137.1

Total 386.4

100.0

119.6

FY2018 2Ｑ

FY2019 2Ｑ

226.1

191.0

(▲35.1)

84.8

104.9
FY2020 2Ｑ

97.2(＋12.4)98.2(▲6.7)FY2021 2Ｑ

22

Scheduled delivery amount by quarterly accounting period[Second quarter opening time](Kyudenko individual : excluding power distribution work）

Second quarter opening construction works on hand of quarterly accounting period
Scheduled delivery amount
FY2017 2Q

FY2018 2Q

FY2019 2Q

FY2020 2Q

FY2021 2Q

opening

opening

opening

opening

opening

Total 91.0

Total 100.0

Total 119.6 Total 104.9（Billion yen）

Total 98.2

61.5
51.4

49.6
44.3

43.4

29.3

28.1
23.2

25.4

25.2 25.2

28.8 30.1 28.7

19.5

Second quarter

Third quarter

Fourth quarteraccounting period

accounting period

accounting period23

Analysis by scale of order(Kyudenko individual : excluding power distribution work）(Million yen)■2017.6 ■2018.6 ■2019.6 ■2020.6 ■2021.6

25,47926,882

26,68822,86010,92812,605

12,353
10,215

22,156

11,575100～300 million yen

Under 100 million yen
24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

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

49

540MW

156MW

Under
construction

-

-

-

Under
construction

5

687MW

141MW

Plan

-

-

-

Plan

-

-

-

Total

49

92MW

87MW

Total

54

1,227MW

297MW

From April to June, a total of 39 controls on output were issued by Kyushu Electric Power Company.
The average number of controls at our power plants was 14.
The total amount of lost profits for the group was about 340.0million 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

5

38MW

38MW

Under
construction

-

-

-

Plan

-

-

-

Total

5

38MW

38MW

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
Deals operated by group

Mar.2022 1st quarter end
Deals through investment in equity■Solar Power Plants ■Wind Power Plants (Million yen)
■ Operating profit(Non-operating income)■Solar Power Plants ■Wind Power Plants(Million yen)

689
490

534

519

370

345
Total 273

Total 1,405

Total 227
Total 234

Total 1,390
Total 1,274

Total 1,240
Total 1,152

Total 1,113
133
268

916

1,060

1,186

1,214

1,076

950

236

179

204

191

198

162

2016'06

2017'06

2018'06

2019'06

2020'06

2021'06

243

Total 51
46
Total ▲245-9-142016'06

2017'06100
5

2018'06

18
-12

-15
2019'06

Total 62020'06

2021'0631

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

Key measures for the second year (FY2021)
Matters to be focused on[Excerpt]

Theme for FY2021

Strengthen and expand the order base『Application to environmental
changes and realization of recovery』•Secure orders and construction of large-scale projects in
Japan•Expansion of small and medium-sized projects

Group sales:

Deepen measures to improve profitability

500 billion•Re-enforcement of measures to improve profit margin•Strengthen cost management and construction support by
the Engineering Management Department

yen

Strengthen human resource development•Strengthen OJT (on-the-job training) for young employees•Introduction of digital education support tools

Promotion of DX•Improvement of operations and review of processes•Research and study of BIM and advanced technologies

Strengthen governance•Ensuring the implementation of measures to prevent
recurrence in order to eradicate fraudulent activities•Further enhancement of compliance education

36

“E･S･G” Initiatives
On July 1, 2021, we established a new organization and increase the number of outside directors.
「E」: We saw the solution of social issues related to climate change as a business opportunity and strengthened ourorganization for this purpose.
「S」: In order to achieve sustainable growth, we established a new organization to foster an organizational culture in which
diverse human resources can play an active role.
「G」: We increased the number of outside directors by one as an effort to achieve both diversity and appropriate size of theBoard of Directors.

Establishment of Green Innovation Business Division
Environment

Amidst the accelerating movement toward carbon neutrality, the Green Innovation Division
was newly established with the aim of promoting business in unison, viewing the realizationof a decarbonized society as an opportunity for growth.

Establishment of the Diversity Promotion Preparation OfficeSocialThe Diversity Promotion Office was established with the aim of creating opportunities toutilize diverse human resources, including women, foreigners, the elderly, and people
with disabilities, and to maximize their abilities in the midst of an accelerating decline in
the working population.

Increase in the number of outside directors by one[Appointment of female directors].
GovernanceIn order to achieve diversity in the Board of Directors and at the same time to enhance
corporate value over the medium to long term, we appointed people with sufficientqualifications.

37

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
38

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)
40

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％41

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.

42

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

43

【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 Line44

【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

45

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

46

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,≪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.

and construction management.
● change in the way we work.

47

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 diagnosisof power distribution lines
using VR gogglesof signs of failure
Health Support Services

Construction Management
Training Using AR Smart Glasses

48

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

Investor

Kyudenko

Establishment

July 2020.

Start of businessAugust 1, 2020.

Business Area

throughout Japan

社名
Business
Description

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

customer
consulting
information
consulting fee

Japan Energy Consulting Co.

(100% owned by theCompany)

matching

EPC order

information
know-howenergy supplier

Design estimate support fee

design fee

ES BusinessCompany49

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 4
Step 2
Step 1
Community Energy
Equipment
Company
Leave the energy
equipment
to Kyudenko.

Regional Utility
Facility Company
Leave public
infrastructure
facilities to Kyudenko.

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

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

50