Securities code：1959

FY ended March 2020, First quarter end

Outline of balance sheet(Million yen)

End ofMar. 2018

End ofMar. 2019

End of June2019

178,884

206,268

196,746(55.1%)(57.7%)(57.0%)

146,034

151,002148,344(44.9%)(42.3%)(43.0%)

324,919357,271

345,090(100.0%)(100.0%)(100.0%)Current
liabilities

130,222

142,144

134,016(40.1%)(39.8%)(38.8%)

Fixedliabilities

30,55732,94930,408(9.4%)(9.2%)(8.8%)

Total
liabilities

160,780

175,094

164,425(49.5%)(49.0%)(47.6%)

Total net
assets164,139

182,176

180,665(50.5%)(51.0%)(52.4%)

Total liabilities
and net assets

324,919357,271

345,090(100.0%)(100.0%)(100.0%)Current
assetsFixed assets
Total assets

Increase/decrease

Main factors behind increase/decrease▲9,522

Trade notes and accounts receivable ▲21,643
Costs on uncompleted construction contracts +6,442▲2,658Investment securities ▲2,384▲12,180▲8,128Trade notes and accounts payable ▲24,142
Advances received on uncompleted construction
contracts +13,983▲2,541

Net defined benefit liability ▲1,956▲10,669▲1,511

Valuation difference on available-for-sale securities ▲1,532▲12,1801Outline of P/L March 2019
(Million yen)March 2019

March 2018
ResultResult360,872

408,143(100.0%)(100.0%)Gross profit

56,65960,561(15.7%)(14.8%)

Operating profit

34,72636,747(9.6%)(9.0%)

Ordinary profit

37,34239,924(10.3%)(9.8%)

25,296

26,691(7.0%)(6.5%)

Sales

Net profit

Net profit per share¥356.89

Year-onyear

Plan (2018.4.27)

113.1%

385,000

106.9%

63,000105.8%

38,000106.9%

41,000105.5%

28,000¥375.17(100.0%)(16.4%)(9.9%)(10.6%)(7.3%)

Progress

106.0%

96.1%

96.7%

97.4%

95.3%

¥393.572

Factors of change in OP March 201940
（Billion Yen）
Depression ofSalesgross profit
increased inratio inelectrical & electrical &HVAC & solar HVAC & solar
plant
plant
construction construction

38

▲1.9

＋4.4

36

34.7
34

32

Operatingprofit inMarch, 2018

Bonus
increase▲1.0

A

Increase ofother fixed
cost
Power
(overhead
Impact of distributioncost) in
newly
line work
SG&A, Grossconsolidated
Cost
subsidiaries

▲0.7

B

＋0.2

C

F

Power Other businessgeneration
business
＋0.2

＋0.3

G

H

36.7

Operatingprofit inMarch, 2019

E

＋0.6

D
Main factors failed
achieve plan30
3Outline of P/L March 2020, 1st quarter end(Million yen)March 2019,

March 2020,

1Qend Result

1Qend Result

Change compared to the same
period of the previous year
Increase/decrease70,792

83,747(100.0%)(100.0%)Gross profit

9,199

10,938(13.0%)(13.1%)

Operating profit

2,938

4,674

(4.2%)(5.6%)

Ordinary profit

3,565

5,399

(5.0%)(6.4%)Net profit

2,265

3,843

(3.2%)(4.6%)¥31.85¥54.03

Sales

Net profit per share

Rate ofchange12,954

18.3%

1,738

18.9%

1,736

59.1%

1,834

51.5%

1,577

69.6%

-

4

Factors of change in OP March 2020, 1st quarter end

E（Billion Yen）

F

5
D

C

4

B

Operating profit
in March, 2018
1Q end（revised)

3.2
3

＋0.3

※

2.9
Operatingprofit inMarch, 2018
1Q end2

Depression ofgross profit
ratio inelectrical &HVAC & solar
plant
construction Other business

A

Bonus
increase▲0.2

Decrease ofother fixed
cost(overheadcost) in
SG&A, Gross
Cost

Sales
increased inelectrical &HVAC & solar
plant
construction

Power
distribution
line work

▲0.5

＋1.4

4.6

＋0.1

Operatingprofit inMarch, 2019
1Q end

＋0.5（＝＋0.8ｰ0.3）＋0.1※Power distribution line work
Amount to be paid retroactively
・The unit price for power distribution line work in fiscal 2018 was revisedin January 2019.
・That caused some amount to be paid retroactively from April , 2018
・It has amounted 0.3 billion yen from April to June.

5Factor of gross profit ratio depression
Breakdown of construction sales（Kyudenko individual：excluding power distribution line work）
Whole construction sales increased 10.4billion yen.
Sales from projects delivered increased 4.7billion yen.
Sales from projects Not delivered increased 5.7billion yen.
Difference of Project profit ratio between delivered items and Not
delivered items is about 8%.

Construction sales（Million yen）

26.9

25.0

24.4

Average profit ratio of delivered items
Average profit ratio of
Not delivered items

17.9

100,000

about
18.1

8％

80,00023,864
7,514
17,745

Project Not delivered（Percentage of completion method）

49%

31,44662%

37,195

61%

8,809

39%

40,000

Project delivered（Percentage-of-completion method）

51%

3,336
16,17038%

Project delivered
construction sales （Completed-contract method）
Composition of

2017’06

60,000

total 50,952

total 49,123

Sales from

Sales from delivered items
Not delivered items

16.3
total 61,430

2018’06

20,00015,4260

2019’06

6

Reasons for decline in profit ratio for each projectand measures (excerpt)(1)
FactorMeasures・Forecasting the peak of busyness in the whole construction
period, make an input plan for workers early and start thearrangement. 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.
7
A. Forecasting the busyness
peak of construction

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.

Order received / Sales by department
Mar. 2019 Full year

(Million Yen)

Sales of each department■2017.3■2018.3

Impact of newly
consolidated subsidiaries■2019.3

Electrical 857

220,000■2018.3

Impact of newly
consolidated subsidiaries■2019.3

Electrical 1,073■2017.3

220,000

HVAC 12,191

165,667
153,447
137,924(Million Yen)

Orders of each department

172,689
HVAC 9,455
167,040
162,646
150,469

126,573
120,414101,164
94,13596,38449,444
48,37945,15747,41047,706
46,633060,901
50,76447,79347,453
46,53745,3320Powerdistribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

Power
distribution
line work

Electricalwork

HVAC work

Solar plant
constructionwork

8Order received / Sales by department Jun. 2019

(Million yen)

Sales of each segments■2017.6 ■2018.6 ■2019. 6(Million yen)Orders of each segments■2017.6 ■2018.6 ■2019.6

70,00070,00045,164
38,665
38,113 41,727
37,732
34,70529,62324,942
23,662

26,481
22,50219,804

11,121 11,321
10,318

11,7079,228
8,096

12,054
11,393
10,933

15,697
7,968
2,429

0

Power
distribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

0

Power
distribution
line work

Electricalwork

HVAC work

Solar plant
constructionwork

9Order received / Sales by customer
Mar. 2019 Full year

(Million Yen)

Sales of each customer(Million Yen)

Orders of each customer

350,000■2017.3■2017.3■2018.3■2018.3

326,676
306,607
298,116350,000

305,300■2019.3■2019.3

263,796249,215

48,79434,72548,652
34,23347,881
31,04849,136

48,65547,981
30,51530,1670

Kyushu ElectricPower Co,

Govermment/Public

30,570Privatecompanies

0

Kyushu ElectricPower Co,

Govermment/Public

Privatecompanies

10Order received / Sales by customer June 2019

(Million yen)

Sales of each customer■2017.6 ■2018.6 ■2019.6(Million yen)Orders of each customer■2017.6 ■2018. 6 ■2019.6
120,000

120,000

88,25378,28375,971
62,66752,656
46,81011,083

11,497
10,325

11,600
4,791

12,235
11,163

4,969

10,134
6,620
2,321

4,010
0

0

Kyushu ElectricPower Co,

Govermment/Public

Privatecompanies

Kyushu ElectricPower Co,

Govermment/Public

Privatecompanies

11Order received / Sales by region Mar. 2019 Full year
(Electrical & HVAC work excluding Solar plant construction work)(Million yen)

Sales of each region■2017.3 ■2018.3 ■2019.3(Million yen)Orders of each region■2017.3 ■2018.3 ■2019.3

240,000

240,000

218,328
198,203
197,665

202,906
178,698
168,191

68,471
62,97456,89568,09543,862
38,59426,852
21,247
17,275

21,567
20,574
5,742
11,811
5,247
2,164

5,198

4,026 3,963
00KyushuTokyo Nagoya
Area

Osaka Area

Overseas

KyushuTokyo Nagoya
Area

Osaka Area

Overseas12Order received / Sales by region June 2019
(Electrical & HVAC work excluding Solar plant construction work)(Million yen)

(Million yen)Orders of each region

Sales of each region■2017.6 ■2018.6 ■2019.6■2017.6 ■2018.6 ■2019.6

80,00080,00057,142
55,34649,63436,732
32,67529,32917,97817,633
15,43015,027
10,948
8,505

4,860 3,777
3,045

771

7,638
6,414
2,930

775
567

0

KyushuTokyo Area

Osaka Area

Overseas

4,822
652
483

0

KyushuTokyo Area

Osaka Area

Overseas13Order received / Sales by region Mar. 2019 Full year
(Solar plant construction work)(Million yen)

Sales of each region■2017.3 ■2018.3 ■2019.3(Million yen)Orders of each region■2017.3 ■2018.3 ■2019.3
50,00050,00041,12940,23240,18927,05927,36526,75815,038

13,611

13,316
9,467

8,630
7,647

4,743
7,057

6,306

4,891

4,650

1,883
0

0

KyushuTokyo Nagoya
Area

Osaka Area

KyushuTokyo Nagoya
Area

Osaka Area

14

Order received / Sales by region June 2019
(Solar plant construction work)(Million yen)■2017.6 ■2018.6■2019.6(Million yen)Orders of each region

Sales of each region■2017.6 ■2018.6■2019.6

18,00018,00014,987

10,778

7,334
6,719

3,369
2,222

2,504

1,594
868

1,769
649

914
60

341 425

61

318

208

0

0

KyushuTokyo Area

Osaka Area

KyushuTokyo Area

Osaka Area

15

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

New orders in FY ended March 2019■2017.3 ■2018.3 ■2019.3

150,000

132,519
129,498
118,676

121,420

97,598Image

100,350
97,304
94,744

63,975

1,184
1,121

840

0

Power
distribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

16

Situation of order stock June 2019

(Million yen)Order stock of each segments■2017.6■2018.6■2019.6

180,000

146,241
140,198

137,868

129,644

116,750
102,345 93,564
93,551
82,073

1,708
1,418 1,573
0PowerElectrical work HVAC work
distribution
line work

Solar plant
construction
work

17

Plan for March 2020
(Million yen)March 2019
ResultSales

Gross profit

Operating profit

Ordinary profit

Current (quarter) net profit

Current net profit per stock
Dividends

Plan for March 2020
March 2020

408,143

418,000(100.0%)(100.0%)60,56162,700(14.8%)(15.0%)

36,74738,000(9.0%)(9.1%)

39,92440,700(9.8%)(9.7%)

26,691

27,200(6.5%)(6.5%)

Year-on-Year

102.4%
103.5%
103.4%
101.9%
101.9%¥375.17¥382.58

100円

¥100

Interim ¥50

Interim ¥50

18

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 326.7

Total 321.2

91.7

92.7
(＋1.0）

Total 310.6

Deliver on after next FY

137.1
135.0

108.9
（▲26.1）

Deliver on next FY

82.5
100.0

119.6
（＋19.6）
1.2 times

FY 2018 2Q

FY 2019 2Q

Deliver on FY

91.0

FY 2017 2Q

19

【Reference】 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

opening

opening

opening

Total 91.0

Total 100.0

Total 119.6（Billion yen）

61.5
51.4
43.4

29.3

28.1

25.4

23.2

28.8

19.5

Second quarter

Third quarter

Fourth quarteraccounting period

accounting period

accounting period20Analysis by scale of order(Kyudenko individual : excluding power distribution work）(Million yen)■2017.6 ■2018.6 ■2019.6

25,47926,68822,86010,92812,605

12,353100～300 million yen

Under 100 million yen
21Orders & Sales plan by department(Million yen)

Sales of each department■2018.3 ■2019.3■2020.3（plan）■2018.3 ■2019.3■2020.3（plan）

240,000

240,000(Million yen)Orders of each department

202,500
167,040

170,000
165,667

162,646

153,447

150,469

135,500

135,000

126,573

120,414101,164
50,00048,37945,15747,70647,50046,63350,76445,33240,00047,45347,50046,5370

0Power
distribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

Power
distribution
line work

Electricalwork

HVAC work Solar plant
construction
work

22

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

45

371MW

117MW

Under
construction

-

-

-

Under
construction

6

277MW

76MW

Plan

-

-

-

Plan

1

50MW

20MW

Total

49

92MW

87MW

Total

52

698MW

213MW

2.0 to 2.4 billion yen at its maximum

1.8 to 2.0 billion yen at its maximum

In the current fiscal year , the suppression of solar power’s output was implemented by KEP
from April to May .（Total 30 days）

Impacts

Instruction to stop a total of 745 power station out of 86 power station in a whole
Loss of profit might be 198 million yen.(assumption)※Projects in above table are old regulation (suppression is up to 30 days rule).
Business plans with 8% suppression instructions incorporated

23

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

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

Wind power plant(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(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

4

80MW

18MW

Under
construction

1

65MW

32MW

Plan

-

-

-

Total

5

145MW

50MW
25

Mid-term management planAxes of the growth strategy and key measures

Axes of the growth strategy“Establish stable foundation in Kyushu”“Strengthening business in the metropolitan area”“The development of human resources”≪ Kyudenko’s Four Strategic Policies≫
１ “ Sales force ” to meet trusts and expectations of clients
２ “ Technological force ” to win the cost & quality competition
３ “ On-site Capabilities ” to obtain more projects and profit efficiency
４ “ Growing Force ” for future success27

Numerical target≪ Main theme ≫Challenge to a Further Growth～To the next growth stage～≪ Numerical target at March 31, 2020≫(Results in March 2019)

S a l e s

400 BillionYen

408 BillionYen

Gross Profit Ratio

Over
％
15

14.8 ％

Operating Profit Ratio

Over
％
9

9.0 ％

R O E

Over
％
14

15.6 ％

28

Road map of sales plan
(Billion yen)
400

48

50

166

170

127

136

45
50

Solar plant
construction

48

66
138
Electrical construction

153

127

111

HVAC
80

94

101

47

47

47

48

48

15

13

15

20

15

2016.32017.32018.32019.32020.375

Power distribution line
45
Others0

14
2015.3(plan)
Medium-term management plan（2016.3～2020.3）

29

Breakdown of sales plan （March 2020）

Total sales

400 Billion yen

Each business lines

By region (Electrical and HVAC)

Solar plant construction

50 Billion yen

Kyushu176 Billion yen

Electrical and HVAC

289 Billion yen

Tokyo

73 Billion yen

Power distribution line

47 Billion yen

Kansai/Okinawa

23 Billion yen

Others

14 Billion yen

Over seas

17 Billion yen

Renewal &Renovation Services
which is inclued inabove figures

130 Billion yen
30Actual results of recruitment of human resources (single Kyudenko) and workforce planning≪ Comparison in actual results of recruitment
for April 2019 with other companies≫≪ Actual results of periodic recruitment of engineers andskilled persons≫
2007～2014

2015

2016

2017

2018

2019
Kyudenko

Large electricalconstruction
companies

Large HVAC
companies

Super general
constructors

Total in all
professions

362

320～33060～90

250～330

Total
engineers andskilledpersons

Around 200

241

262

344

384

342

High
schoolgraduates

Around 150

163

177

248

271

253

High
schoolgraduates

253

Around 190

Around 10

Around 10

University
graduates

Around 50

78

85

96

113

89

University
graduates

109

130～14060～80

250～320≪ Planned year-end workforce until FY2020 March≫
Increase or
Mach 2016

Mach 2017

Mach 2018

Mach 2019

Mach 2020

decrease in plan

Electrical work department

1,728

1,826

2,090

2,203

2,228

About +500

HVAC work department

921

990

1,052

1,107

1,160

About +240

Year-end workforce of electricaland HVAC

2,649

2,816

3,142

3,310

3,388

About +740

Power distribution line department

1,869

1,816

1,741

1,669

1,647

About ▲220

Other

1,394

1,408

1,418

1,420

1,433

About +40

Employees of single Kyudenko

5,912

6,040

6,301

6,399

6,468

About +560

Employees of group

8,976

9,287

9,843

9,954

10,000

About +1,000

Total 8,100 employees in technical field of total 9,900.
(Kyudenko )(Subsidiaries)

Number ofsite
technicians

About 2,100+

About 2,000=

About 4,100

Number of
construction
managers

About 3,000+

About 1,000=

About 4,000

31

Promotion of Development of Human Resources
Established the education base of Kyudenko group “Kyudenko Academy”
Training in power distribution and rising pillars

Training in wiringAppearance of Kyudenko Academy

Place for psychological training “Hogakuan”

32Expansion of business area and acceptance of brand≪ Strengthening of organizations in areas excluding Kyushu≫
Promote expansion of business area andstrengtheningⒶ 2008Ⓑ 2012

Do capital ties with companies seeking such at
local-based operational activities in the Tokyo
Metropolitan Area and newly entering areas andcompanies that can technically supplement usⒸ 2012Ⓓ 2014Ⓔ 2015Ⓕ 2017
Network of headquarters, branches andregional offices in areas excluding Kyushu≪ New participant companies of Kyudenko group≫Year ofparticipation■ : Headquarters■ : Branch and regional office
Ⓒ
Ⓕ⑦
Ⓐ ⑨
Ⓓ⑧④

①③

⑥②
⑤

Ⓑ

Reorganized Tokyo organization and establishedTokyo Headquarters
Reorganized Osaka branch to Kansai branch to expand
its business territory
Established Tohoku regional office
Reorganized Yokohama business office to Yokohama
regional office
Established Nagoya regional office
Reorganized Saitama business office to Saitama
branchName ofCompany

Location

Sales for FY2018 Employees

①

2014

Koderadengyo

Osaka

1,932 million yen

50

②

2014

Kakusokukeisou

Fukuoka

1,153 million yen

57

③

2015

Kawachikougyou

Osaka1,488 million yen

18

④

2015

Syoueidensetu

Chiba

983 million yen

28

⑤

2016

Kyusetukougyou Nagasaki

571 million yen

9

⑥

2017

Jinnouchikoumutenn

Saga

450 million yen

34

⑦

2018

Sanyudensetu

Fukushima

857 million yen

47

⑧

2018

Ergotech

Yokohama 10,427 million yen

144

⑨

2018

Seiwakougyou

Ibaragi

33
33
36

Ⓔ

1,763 million yen

Photovoltaic power generation facility construction
We constructed a tight connection with partners in other industries as a result of appreciation of abilities to develop deals and judge investments.
There is a huge volume of information on large deals requiring much time for development, and we now expect orders directly nominated frompartners.
（The following expectations exclude the Ukujima project）

We seek to gain demand for replacing power conditioning system 10 years later and replacement demand 20 years later as a previous
constructor.

Bar chart
Amount (million yen)
100,000
80,00060,00040,00020,0000Line chart
Number of deals of solar power facility construction works worth 100 million yen or more by deal

Actual and expected results of orders received

150
100
50
0

2013.32014.32015.32016.32017.32018.32019.32020.32021.32022.3

Sales will be generated at around 40
150
billion yen per year by 2022.3 to2023.3.

Actual and expected results of sales

80,000The business will contribute around 10 to 20
billion yen per year to orders received owing to
demand for maintenance and decennial
replacement of power conditioning systems
despite a gradual reduction in contribution.
Demand for replacement is expected 20 years
later.

60,000100

40,00050

20,000002013.3150,000

2014.32015.32016.32017.32018.32019.3

Actual and expected results of works in hand

100,000

2020.32021.32022.3100

Larger deals will reduce the workforce
necessary in amount.

50
50,000002013.32014.32015.32016.32017.32018.32019.32020.32021.32022.334

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
Correspondence to earthquake resistant structure·(Thousands)

Tokyo Olympic (2020)

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

80
800
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
20

Working age population
Working age population
Peak: 87.26 million

10(1995)

Base: 77.28 million

度

20
200

Working age population
Forecast: 45.29 million 10
100(2065)(2015)

0

年1960

30
300

00

1970

1980

1990

2000

2010

2020

2030

2040

2050

35

【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

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 Line36

【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 2024
・Total floor area
757,000㎡
・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 20-30 years
・Cruise terminal, MICE,
commercial facilities,
hotels・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)③Hakata Connected37

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 generalof collaboration with different
industries, and receiving an orderfor construction
・Construction profit + Business

contractor

profit 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％38

＜As regards to scandal of employee concerning Chikujyo town water and waste sewage treatment facility＞

・ Recurrence prevention measures

KYUDENKO Group has formed an investigation committee, which includes outside directors andlawyers, and thoroughly investigated the causes, such as the opportunities and the motivation for the
fraud. The recurrence prevention measure based on this survey is as follows.

Scandal farewell declaration『 KYUDENKO Group will comply with law thoroughly in all business activities 』
1. Enhance compliance awareness3. Review of outsourcing order scheme(1) Reform Employee’s awareness aiming at
creating a corporate culture to point out scandal(1) We thoroughly pursue a scheme to avoid
scandal in outsourcing orders.

(2) Reeducate compliance thoroughly(2) Verification enhancement of the validity of theoutsourcing order amount(3) Formulate and disseminate "salespersons action
guidelines“ thoroughly(3) Enhancement of scandal monitoring function for
construction orders(4) Raise awareness for the prevention of scandal

4. Thorough prevention of scandal tooutsourcing companies

2. Enhance in-house check function(1) Cooperation request for prevention of scandal
to outsourcing companies(1) Thorough scrutiny of costs(2) Review the items of the contract with theoutsourcing company(2) Thorough new personnel and evaluation system

5. Enhancement of reporting system andstricter internal disposal(3) Enhancement of check function in businessprocessing(1) Common knowledge and completion of thereporting system(4) Verification enhancement by system(2) Stricter internal disposal

39