Securities code：1959

FY ended March 2021, First quarter end

Outline of balance sheet

Current
assetsEnd ofMar. 2019

End ofMar. 2020

End of June2020

(57.7%)(58.7%)(56.1%)

206,268

216,269

194,532

Fixed assets

151,002152,212152,272

Total assets

357,271368,482

346,805

142,144

142,723

122,353

32,94928,316

26,659Current
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%)(43.9%)(100.0%)(35.3%)(7.7%)

175,094

171,039

149,012

182,176

197,442

197,793(100.0%)(100.0%)(100.0%)(49.0%)(51.0%)

357,271(46.4%)(53.6%)

368,482(43.0%)(57.0%)

346,805(Million yen)

Increase/decrease

Main factors behind increase/decrease▲21,737

Trade notes and accounts receivable ▲48,443
Cash on hand and in banks +19,677
Costs on uncompleted construction contracts +3,719

60

Investment securities +1,309
Asset for retirement benefits ▲418
Deferred tax assets ▲316

▲21,676▲20,369▲1,657

Trade notes and accounts payable ▲29,231
Net defined benefit liability ▲968
Long-term debt ▲540

▲22,027350▲21,676

Valuation difference on available-for-sale securities +8671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
38
36
34
32
30

36.7
Operating
Profit in

D
＋3.0

A
▲0.6
Bonus
increase

B
＋0.3

C
▲0.2

E

:Increase

▲3.7

Sales
Depression
increased inof grosselectrical &profit ratio
HVAC &
in electricalsolar 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, 1st quarter end
March 2020,

1Qend Result
Sales
Gross profit

83,747

March 2021,

1Qend Result

79,439Change compared to the same
period of the previous year
Increase/decrease

Rate ofchange(100.0%)(100.0%)▲4,307(13.1%)(12.4%)▲1,078

▲9.9％

▲812

▲17.4％(5.9%)▲744▲13.8％(3.9%)▲724▲18.8％

10,9389,860

Operating profit

4,674

3,862

Ordinary profit

5,399

4,655

Net profit

3,843

3,119

¥54.03¥44.03

Net profit per share(Million yen)

(5.6%)(6.4%)(4.6%)(4.9%)

▲5.1％

-

4

Factors of change in OP March 2020, 1st quarter end（Billion Yen）

5

4

3

2

A

Bonus
decrease＋0.2

4.6
Operatingprofit inMarch, 2019
1Q end＋0.2
B

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

▲0.4
C

Decrease in
sales

▲0.3
D

Declining profit
margins on
construction

▲0.1
E

▲0.3
F

Power
distribution
line work Other business

3.8

Operatingprofit in March,
2020
1Q end5

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
21.8
17.7

Sales fromNot delivered
items

total 262,902

24.2

21.8

18.3

total 279,794

Project Not delivered（Percentage of completion method）
80,498102,046
36%
31%

Sales fromdelivered items

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

Project delivered（Completed-contract method）
103,546
102,534
37%
39%

2017’032018’03

24.9

25.5

Construction sales（Million yen）
400,000

19.1

total 315,566

18.0

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 Jun.2020（Kyudenko individual：excluding power distribution line work）
Construction sales（Million yen）

Average profit ratio

33.4

24.2

17.9

total 49,123

100,000

25.1

24.4
18.1

total 50,952

Sales fromNot delivered
items

Project Not delivered（Percentage of completion method）
23,86449%
62%
31,446

26.2

21.4

16.3

15.4
14.8
total 57,456

total 61,430
37,195

Sales fromdelivered items

Project delivered（Percentage-of-completion method）
7,514
8,809
15%
6%
3,336

17,745
16,17036%
32%
Project delivered（Completed-contract method）

15,4262017’06

2019’06

2018’06

26.2

61%
14%
25%

80,00060,00035,721

62%

40,0007,036

12%

20,00014,6992020’0626%

07

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 Jun. 2020

(Million yen)

Sales of each segments■2018.6 ■2019.6 ■2020. 6

70,00070,0000Power
distribution
line work

HVAC work■2019.6■2020.6

26,50911,7079,228 10,122

Electricalwork■2018.6

38,66541,727
38,11335,33534,70529,62328,870 26,481
25,58524,94222,502

11,333
11,321
10,318(Million yen)Orders of each segments

Solar plant
construction
work

12,054
10,933 11,725
0Power
distribution
line work

7,968
5,105
2,429
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 Jun.2020(Million yen)

Sales of each customer■2018.6 ■2019.6 ■2020.6(Million yen)Orders of each customer■2018.6 ■2019. 6 ■2020.6

120,000

120,000

78,28375,971
62,761
62,66759,89752,656

11,497
11,185

12,235
11,163

10,325

6,620

4,969

2,321
4,010

11,664

1,966

7,113
0
0

Kyushu ElectricPower Co,

Govermment/Public

Privatecompanies

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 Jun.2020(Electrical & HVAC work excluding Solar plant construction work)(Million yen)

Sales of each region(Million yen)Orders of each region■2018.6 ■2019.6 ■2020.6■2018.6 ■2019.6 ■2020.6

80,00080,00055,34649,634
41,77336,73233,94432,675

17,97816,04915,43015,027
14,656
10,948
4,602
3,777
1,253
3,045
775 567

6,414
4,127
2,930

4,822
652

0
0

KyushuTokyo Tohoku
and Chubu Areas

Osaka Area

Overseas

KyushuTokyo Tohoku andChubu Areas

Osaka Area

Overseas ▲105

13

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 Jun.2020(Solar plant construction work)(Million yen)

Sales of each region■2018.6 ■2019.6

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

18,000■2018.6 ■2019.6■2020.6

10,778

7,334
6,719

6,934

2,469
2,071
1,594

1,769

1,117
868

1,110

1,526

914
425
60

341

318 208

Tokyo Tohoku andChubu Areas

Osaka Area

00

KyushuTokyo Tohoku andChubu Areas

Osaka Area

Kyushu15

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 order stock Jun.2020(百万円)

Order stock of each segments■2018.6

360,000■2019.6■2020.6

New orders in FY ended Jun.2020
Image

209,525

180,000

146,241
137,868
129,644
125,603
116,750 114,190 93,564

Image

93,551

1,708
1,573
1,906
0

Power
Electrical work HVAC work
distribution
line work

Solar plant
construction
work

17

Plan for March 2021
March 2020
ResultSales

428,939(100.0%)Plan for March 2021

March 2021

413,000(100.0%)Gross profit

60,093Operating profit

36,02232,000Ordinary profit

38,64334,000Current (quarter) net profit

26,24522,500Current net profit per stock
Dividends(14.0%)(8.4%)(9.0%)(6.1%)

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

Year-on-Year

96.3％
93.9％
88.8％
88.0％
85.7％

¥370.00¥317.59

Interim ¥50

Interim ¥50

100円

¥100
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

Deliver on after next FY

91.7

Total 321.2

Deliver on next FY

135.0

108.9

91.0

100.0

119.6

FY 2017 2Q

FY 2018 2Q

FY 2019 2Q

Total 310.6
137.1
82.5

Deliver on FY

92.7

Total 415.8
226.1(+133.4)
84.8(▲24.1)104.9(▲14.7)FY 2020 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

Total 91.0

Total 100.0

opening

opening

FY2019 2Q

FY2020 2Q

opening（Billion yen）

opening

Total 119.6 Total 104.9

61.5

43.4
28.1

23.2

29.3

25.2

Second quarteraccounting period

19.5

25.4

51.4

49.6

28.8 30.1

Third quarteraccounting period

Fourth quarteraccounting period20Analysis by scale of order(Kyudenko individual : excluding power distribution work）(Million yen)■2017.6 ■2018.6 ■2019.6 ■2020.6

25,479 26,688

10,92812,605 12,353

22,860 22,156

10,215100～300 million yen

Under 100 million yen
21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

22

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

石川

Miyagi
Fukushima

Okayama Hyogo

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

23

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

Under
construction
Plan

Total

Number ofpower
plants48

Generation
capacity(the entire
operation)

530MW

Generation
capacity(that equal to theequity)

147MW

6

697MW

144MW

54

1,227MW

291MW

-

-

-

1.8 to 2.0 billion yen at its maximum

From April to June, a total of 40 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
347.0million yen.

24

Investment in Power Operations (Wind Power Plants)
Wind power plant

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

4

80MW

18MW

Under
construction

1

65MW

32MW

Plan

1

15MW

3MW

Total

6

160MW

53MW
25

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

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.

27

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

28

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）

29

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.

30

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

Around200

241

Around150

163

Around50

78

2016 2017 2018
262
177
85

344
248
96

384
271

113

2019 2020
342
253
89

≪ 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

31Appendix

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※Design Change
Proposalorder strategy

Kyudenkodetailed design

design office・Kyudenko※Design Change
Proposalconstruction

Kyudenko

construction

Kyudenko33

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(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

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

34

Promotion of Development of Human Resources
Established the education base of Kyudenko group “Kyudenko Academy”
Appearance of Kyudenko Academy

A place to learn from the lessons of the past

Training in power distribution and rising pillars

Training in wiring

35

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.
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)
200,000
150,000

Line chart
Number of deals of solar power facility construction works worth 100 million yen or more by deal

Actual and expected resultsof orders received
The 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.

100,000
50,00002013.32014.32015.32016.32017.32018.3

Actual and expected results of sales

80,00060,00040,00020,0000150

2019.3100
50
2020.32021.3

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

2022.3

0
150
100
50

200,000
150,000

2013.32014.32015.32016.32018.32019.3

Actual and expected results of works in hand2020.32021.32022.3Larger deals will reduce the workforce
necessary in amount.

100,000
50,00002017.32013.32014.32015.32016.32017.32018.32019.30100
502020.32021.32022.3036

Uku island Mega solar generation business
Overview of business

Content ofbusiness

Mega solar generation businesswhile operating agriculture

FIT unit price40yen/ｗ

Powergeneration
outputEPC

KYUDENKO About 140 billion yen

The largest scale in JapanO&M

KYUDENKO

Scheduled
operation start July 2023
month

37

【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 Line38

【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 20-30 years
・Cruise terminal, MICE,
commercial facilities,
hotels39

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％40