Kyudenko Corporation
FY ended March 2023, First quarter end

Securities code：1959

High lights

Sales¥69,089

million1st-on-1st

97.7%

Operating profit¥2,918million1st-on-1st

67.5%¥129,709

million1st-on-1st

135.3%

Orders1

Outline of P/LMarch 2022
(Million yen)March 2022

March 2021
ResultResult391,901

376,563(100.0%)(100.0%)Gross profit

56,631

57,361(14.5%)(15.2%)

Operating profit

32,99833,137(8.4%)(8.8%)

Ordinary project

35,90636,828(9.2%)(9.8%)Net profit

25,042

26,216(6.4%)(7.0%)

Sales

Net profit per share¥353.48

Year-onyear

Plan (2021.4.28)

96.1%

410,000

101.3%

60,000100.4%

35,000102.6%

37,700104.7%

25,500¥370.05(100.0%)(14.6%)(8.5%)(9.2%)(6.2%)

Progress

91.8%

95.6%

94.7%

97.7%

102.8%¥359.942

Factors of change in OP March 2022
（billion yen）

36

:Increase:DecreaseA

34

Increase in
SG&A
expenses

▲0.6
32

32.9
Operatingprofit inMarch,2021

E

B

D

Improvement inProfit margin

Increase in fixed
costs included inconstruction costs

▲1.1

Power
distribution
line work

+0.7

▲0.0
F

Other businessC
Decrease in
sales

33.1
Operatingprofit in+3.0

March,2022

▲1.8

30

28
3

Outline of P/LMarch 2023, 1st quarter end(Million yen)March 2022,

March 2023,

1Qend Result

1Qend Result

Change compared to the same
period of the previous year
Increase/decrease70,69069,089(100.0%)(100.0%)10,4679,561(14.8%)(13.8%)

Operating profit

4,323

2,918

(6.1%)(4.2%)

Ordinary profit

5,045

3,799

(7.1%)(5.5%)Net profit

3,808

2,356

(5.4%)(3.4%)¥53.75¥33.26

Sales

Gross profit

Net profit per share

Rate ofchange▲1,600

97.7％

▲906

91.3％

▲1,40467.5％▲1,24575.3％▲1,451

61.9％

-

4

Factors of change in OP March 2023, 1st quarter end（Billion Yen）

5

A

・Increase in
SG&A expenses

▲0.5

4

4.3
3

Operating profit
in March, 2022
1Q endB

Decrease in fixed
costs included inconstruction costs

+0.2

D
▲0.5

Decrease in
Profit margin

CF

Decrease in sales

Other business

▲1.1

E

Power
distribution
line work

▲0.0
2

+0.5

2.9
Operating profit
in March, 2023
1Q end5

Breakdown of construction sales and average profit margin(Kyudenko individual : excluding power distribution line work)
Average profit ratio

24.2

24.9

25.5

26.0

22.4

21.8
17.9

17.8
18.0

Sales fromNot delivered
items

Total 279,794

Total 305,015

122,858

40%

Sales fromdelivered items

83,771

16.5
300,000

Total 289,434

37%

Total 274,526

95,302 33%

86,575 32%
200,000

Project delivered（Percentage-of-completion method）

27%

Total 315,566

116,004

400,000

15.7

14.9

Project Not delivered（Percentage of completion method）

102,046 36%

27%

109,690 35%

104,440 36%

88,330 32%
100,000

Project delivered（Completed-contract method）

103,546 37%

98,386500,000

Construction sales（Million yen）

19.1

18.3

74,20225.6

33%89,872

28%

89,692

31%

99,62136%
0

2018’032019’032020’032021’032022’036

Breakdown of construction sales and average profit margin(by quarterly accounting period)(Kyudenko individual : excluding power distribution line work)

Average profit ratio

150,000

30.4

27.2

26.4

26.1

27.7
24.4
Construction sales

24.4

Total 98,634（Million yen）
100,000

19.0
18.6

39,276

17.8
Total 65,555

Project Not delivered（Percentage of completion method）

16.1

Total 59,886
Sales from
Sales fromNot delivered items delivered items

11.9

Total 50,451

28,88535,239

54%

8,068

12%

58%

5,755

11%

15,811

31%

22,24834%

36,226

4,611
19,049

40%

60%

8%

32%

16,845

17% 50,000

42,51343%

Project delivered（Percentage of completion method）

Project delivered（Completed-contract method）
02021’1Q

2021’2Q

2021’3Q

2021’4Q

7

Breakdown of construction sales and Factor of gross profit ratio Jun.2022（Kyudenko individual：excluding power distribution line work）

Average profit ratio

100,000

26.2

25.1
24.4

27.2

26.2

16.3

15.4

Total 61,430

25.8

24.4
18.6

21.4

18.1

28.8
80,000Construction sales（Million yen）

15.4

14.8
Total 57,456

Total 50,952

60,000Total 50,451
Total 47,034

Sales fromNot delivered
items

Project Not delivered（Percentage of completion
method）
37,19531,446

61% 35,721
62% 28,885 58%

62%

40,00027,354

Sales fromdelivered items

Project delivered（Percentage-of-completion method）

8,809

3,336

6%

16,17032% 15,426

14%

25%
Project delivered（Completed-contract method）

2018’06

2019’0659%

20,000

12%

5,755

11%

14,699 26%

15,811

31% 14,967 31%

7,036

4,713 10%02020’06

2021’06

2022’06

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
Sales
Gross profit
Gross profit ratio

360,872
56,65915.7％

408,143
60,56114.8％

428,939
60,09314.0％

391,901
56,63114.5％

1Ｑ results

376,563
57,36115.2％

150,000

20.0

Gross profit ratio

69,089
9,561
13.8％

18.0

16.9
16.6

16.5

15.6

15.6
15.1

14.9

15.6

15.8

14.8 14.9

14.7

100,000

16.0

13.8

13.7

13.6

13.4
13.1

13.0

12.5

14.0

13.3

12.4

50,000
12.0

0

10.0

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

2022’3

4Q

1Q

2Q

3Q

4Q

2023’39

Order received / Sales by department March 2022

(Million yen)

Sales of each department■2020.3■2020.3■2021.3■2021.3■2022.3■2022.3

166,344
153,773
152,495
134,955

176,545
156,104

59,30654,56446,659155,087
142,575
126,801131,872
118,699

123,199
119,511

46,90045,793 45,774(Million yen)Orders of each department

47,57445,65445,64642,86818,229Power
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. 2022

(Million yen)

Sales of each segments■2020.6 ■2021.6 ■2022. 6■2020.6

70,000(Million yen)Orders of each segments■2021.6■2022.6

70,00060,365
51,12343,93635,33534,88428,87025,58527,782
23,10024,613 20,709

11,333
10,514
10,333

10,122
9,226
7,614

0

26,50911,725
11,078
10,838

7,383
5,991
5,105

0

Power
distribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

Power
distribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

11

Order received / Sales by customer March 2022

(Million yen)

Sales of each customer(Million yen)Orders of each customer■2020.3■2020.3■2021.3■2021.3■2022.3■2022.3

442,510331,538
307,216
290,213300,437
246,43147,50947,30645,59347,53946,42828,42845,497
27,79824,617

Kyushu ElectricPower Co,

Govermment/Public

17,208
Privatecompanies

Kyushu ElectricPower Co,

33,13327,526

Govermment/Public

Privatecompanies

12Order received / Sales by customer Jun.2022(Million yen)

Sales of each customer■2020.6 ■2021.6 ■2022.6(Million yen)Orders of each customer■2020.6 ■2021. 6 ■2022.6

120,000

120,000

111,327

76,921
62,761

59,897

53,956
51,971

11,185
10,494

10,322

11,664
11,094
1,966

3,782 3,367

0

Kyushu ElectricPower Co,

Govermment/Public

Privatecompanies

7,875
10,854

7,113

7,528

0

Kyushu ElectricPower Co,

Govermment/Public

Privatecompanies

13Order received / Sales by region March 2022
(Electrical & HVAC work excluding Solar plant construction work)(Million yen)

Sales of each region■2020.3■2020.3■2021.3 ■2022.3

199,179

194,445

189,138
186,123■2021.3 ■2022.3

199,689
174,679

77,59364,742
63,85470,37065,36064,96919,268
6,791
18,213
5,259
4,878
15,236
Kyushu(Million yen)Orders of each region

Tokyo Tohoku
and Chubu Areas

Osaka Area

Overseas

17,485 16,792
14,351
6,004 5,117
1,873
KyushuTokyo Tohoku andChubu Areas

Osaka Area

Overseas14Order received / Sales by region Jun.2022(Electrical & HVAC work excluding Solar plant construction work)(Million yen)

(Million yen)Orders of each region

Sales of each region■2020.6 ■2021.6 ■2022.6■2020.6 ■2021.6 ■2022.6

80,00080,00078,14054,96041,77333,94433,132
32,99725,987
17,11816,04914,656
10,713 11,205
4,602
1,784
2,862
2,324 1,253 1,186
0

KyushuTokyo Tohoku
and Chubu Areas

Osaka Area

Overseas

4,127
3,690
2,157
0

5,202
3,052
▲105

KyushuTokyo Tohoku andChubu Areas

Osaka Area

Overseas15

Order received / Sales by region March 2022
(Solar plant construction work)

Sales of each region■2020.3(Million yen)■2021.3 ■2022.3(Million yen)Orders of each region■2020.3■2021.3 ■2022.3

155,891

48,67232,54224,01814,8296,301
Kyushu25,39618,142

Tokyo Tohoku and Chubu
Areas

19,60812,403
6,433
4,332

7,787

Osaka Area

Kyushu

9,532

7,481
Tokyo Tohoku and Chubu
Areas2,960 793
1,045
Osaka Area

16

Order received / Sales by region Jun.2022(Solar plant construction work)(Million yen)■2020.6 ■2021.6■2022.6

18,000(Million yen)Orders of each region

Sales of each region
18,000■2020.6 ■2021.6■2022.6

6,934
5,513
4,300

3,610

3,328

4,480
3,288

1,117

2,071

2,469

2,287

Tokyo Tohoku andChubu Areas

1,110

25

0

Kyushu2,652

Osaka Area

1,526
199

279

250

0

KyushuTokyo Tohoku andChubu Areas

Osaka Area

17

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

New orders in FY ended March 2022

■2020.3 ■2021.3 ■2022.3

214,542
178,207
174,417
Image

113,266 121,216
110,767
108,765
107,940

119,138

1,514
1,3751,247
PowerElectrical work HVAC work
distribution
line work

Solar plant
construction
work

18

Situation of order stock Jun.2022(百万円)

Order stock of each segments■2020.6

360,000■2021.6

New orders in FY ended Jun.2022■2022.6

Image147,742

180,000

125,603

1,906

1,938

124,331

209,525
174,973
172,962
149,239

123,029
114,190

1,753

0

Power
Electrical work HVAC work
distribution
line work

Solar plant
construction
work

19

Outline of balance sheet(Million yen)

End ofMar.2021

End ofMar.2022

End of June
2022

212,574

216,979

194,414(58.0%)(57.3%)(54.1%)

153,957

161,416

165,259(42.0%)(42.7%)(45.9%)

366,532

378,396359,674(100.0%)(100.0%)(100.0%)Current
liabilities

125,361

123,446

103,905(34.2%)(32.6%)(28.9%)

Fixedliabilities

19,42913,754

14,985(5.3%)(3.6%)(4.2%)

Total
liabilities

144,790

137,201

118,890(39.5%)(36.3%)(33.1%)

Total net
assets221,741

241,194

240,783(60.5%)(63.7%)(66.9%)

Total liabilities
and net assets

366,532

378,396359,674(100.0%)(100.0%)(100.0%)Current
assetsFixed assets
Total assets

Increase/decrease

Main factors behind increase/decrease▲22,564

Trade notes and accounts receivable ▲31,243
Costs of uncompleted construction contracts +6,127
Raw materials and supplies +2,854+3,842

Investment securities +874
Asset for retirement benefits ＋884
Goodwill +645

▲18,721▲19,541+1,230Trade notes and accounts payable ▲27,243

Long-term debt +779

▲18,310▲411

Retained earnings ▲1,186▲18,72120

Plan for March 2023
(Million yen)March 2022
ResultSales

Gross profit

Operating profit

Ordinary profit

Current (quarter) net profit

Current net profit per stock
Dividends

Plan for March 2023
March 2023

376,563460,000(100.0%)(100.0%)57,361

63,000(15.2%)(13.7%)

33,13734,500(8.8%)(7.5%)

36,82837,000(9.8%)(8.0%)

26,21625,000(7.0%)(5.4%)

Year-on-Year

122.2％
109.8%
104.1%
100.5%
95.4%¥370.05¥352.88

100円

¥100

Interim ¥50

Interim ¥50

21

Orders & Sales plan by department(Million yen)

Sales of each department■2021.3 ■2022.3

240,000■2023.3（plan）(Million yen)Orders of each department■2021.3 ■2022.3■2023.3（plan）

240,000

202,100
183,000
153,773
152,495

155,087
142,575

139,000

123,199
119,511

147,500
131,872
118,699

77,00048,00045,79345,77454,56446,65948,00045,65445,64642,86829,40018,2290

0Power
distribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

Power
distribution
line work

Electricalwork

HVAC work Solar plant
construction
work

22

Trend of dividends
For the fiscal year ending March 31, 2023,
we plan to pay an annual dividend of 100 yen per share.
Dividend policyWithregard to distribution of profits, we seek to keep appropriate
130
financial strength and appropriately return profits to shareholders withstrengthening
management base for improving operating results and120
securing internal reserve necessary for further business expansion.
To 110satisfy expectations of shareholders, we continuously pay a stabledividend with the use of consolidated payout ratio 25% as a guide,comprehensively
taking into account business environment, operating
100
results and financial position.

100

100

100 100 100

Mar,2019

Mar,2020

Mar,2021

90

90

10
80

70
10

■ Special■ Memorial

70

60

45

50

40

15

30

10

13
3

Mar,2013

Mar,2014

20

10

25
2
7

0

Mar,2011

Mar,2012

Mar,2015

Mar,2016

Mar,2017

Mar,2018

Mar,2022

Mar,2023(Plan)

23

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 431.0
Total 386.4
95.2

Total 326.7
Deliver on after next FY
91.7(▲95.8)

Total 321.2
226.1
92.7

191.0
225.8

Deliver on next FY
135.0

108.9

Deliver on FY
100.0

119.6

(+128.5)

84.8

97.2

104.9

98.2

110.0
(+11.8)FY2018 2Ｑ

FY2019 2Ｑ

FY2020 2Ｑ

FY2021 2Ｑ

FY2022 2Ｑ

24

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
FY2018 2Q

FY2019 2Q

FY2020 2Q

FY2021 2Q

FY2022 2Q

opening

opening

opening

opening

opening

Total 100.0

Total 119.6 Total 104.9（Billion yen）

Total 98.2 Total 110.0

61.5
51.4

51.3

49.6
44.3

29.3

23.2

25.2 25.2

27.6

25.4

28.8 30.1 28.7

31.1

Second quarter

Third quarter

Fourth quarteraccounting period

accounting period

accounting period

25Orders received for small and medium-sized projects (less than 100 million yen)
(Kyudenko individual: excluding power distribution work)◼ Orders for small- and medium-sized projects (contract amounts of less than 100 million yen), whichhave short construction periods and relatively high profit margins, are shown.

(Million yen)

40,00029,30830,00025,47926,882

26,68822,86022,15620,00010,00002017.1Q

2018.1Q

2019.1Q 201803 2020.1Q

2021.1Q

2022.1Q

26

Overview of power
generation businessInvestment in Power Operations (Solar Power Plants)
Mega solar power plant
Miyagi、Fukushima
Ishikawa
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

28

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

51

624MW

169MW

Under
construction

-

-

-

Under
construction

3

602MW

110MW

Plan

-

-

-

Plan

-

-

-

Total

49

92MW

87MW

Total

54

1,227MW

279MW

From April to June, a total of 24 controls on output were issued by Kyushu Electric Power Company.

The average number of controls at our power plants was 3.
The total amount of lost profits for the group was about 123million yen.

29

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

Wind power plant
Fukui

Miyagi
Fukushima

Ibaraki(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

6

47MW

46MW

Under
construction

-

-

-

Plan

-

-

-

Total

6

47MW

46MW

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

144MW

48MW

Under
construction

－

－

－

Plan

1

15MW

3MW

Total

6

159MW

51MW

30

Investment in Power Operations Mar.2022 Result
Deals operated by group■Solar Power Plants ■Wind Power Plants■ Operating profit

1,449
962

1,556

Deals through investment in equity(Million yen)(Non-operating income)

1,748 1,734■Solar Power Plants ■Wind Power Plants(Million yen)

1,144
Total 5,089

Total 4,447
Total 4,282

Total 4,878
Total 4,822
Total 4,692
Total 1,583
Total 1,469

Total 1,450

Total 1,024
4,205
3,233

3,508

4,031

4,050

Total 774

3,917

1,447
1,412

Total 1

1,066
876

369

1,048

938

883

2017'032018'032019'03790
2020'03

828

775

2021'032022'03

1,280

-101

38

135

189
-42

-368
2017'032018'032019'032020'032021'032022'0331

Investment in Power Operations

Mar.2023 1st quarter end

Deals operated by group■Solar Power Plants ■Wind Power Plants

Deals through investment in equity(Non-operating income)(Million yen)

■ Operating profit■Solar Power Plants ■Wind Power Plants

534

490

(Million yen)

696

689
519
345
Total 1,405

Total 273

Total 1,390

Total 1,349

Total 234

Total 1,274

Total 1,240

Total 227

Total 164

Total 1,113

1,186

1,214

1,060

133
1,184

1,076

268

950

265

243

Total 51
Total 6
100
46

179

204

191

198

162

165

2017'06

2018'06

2019'06

2020'06

2021'06

2022'06

5

5

2017'06

2018'06-15
2019'06

2020'06

18
-12

-101

2021'06

2022'0632

Mid-term management plan

Key measures◼ "Promotion of Environmental Management" was added as a new issue to be addressed.
While incorporating environmental management and CSV management into our management strategy,
we will adapt to an environment that is changing at an unprecedented pace.

Three reforms
Reform of construction capability
・Strengthen hiring of engineers based on a long-term workforce plan
・Reduce the turnover rate of young engineers by reviewing technical education
・Establish a system to ensure the timely and optimal deployment of all technicians
・Review the construction management system by strengthening and utilizing theTechnology Management Department
・Promote multifunctional workers

Issues continuing from the previous Mid-term Plan
・Deepen measures to improve profit margins
・Strengthen and expand the order base of the domestic facility work industry
・Strengthen the profitability of power distribution line work
・Develop new business areas
・Create an attractive workplace environment

New Issues to be addressed
Reform of productivity

・Promotion of Environmental Management

・Review the company-wide and departmental training systems
・Achieve optimal personnel rotation for the entire company
・Promote rationalization and labor saving through the use of cutting-edge
technology and IT
・Realize business reforms

Reform of governance・Strengthen and thoroughly implement a governance system

34

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（Breakdown of construction sales）

500 billion yen

Power distribution line work
Electrical･HVAC work

Ordinary profit
marginＲＯＩＣ

50 billion yen
Over 10.0 ％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.

35

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

final year

500
460

429

Solar plant
construction(17.0）

392

377

Renewable energy businessSolar plant
67.8 construction (59.3）

61.5 Solar plant

54.4

construction (54.5）

Electrical

81.0

Solar plant
construction (46.6）

191.0

construction

149.1

157.7

148.4

HVAC

143.0

129.9

116.0

108.9

45.8
19.5

45.7
18.9

Mar.2021

Mar.2022

Power distribution line

46.9
Others 26.7
Mar.2020

50.0
35.0
Mar.2023

Mar.2024

Mar.2025

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

ROIC

11.7％

10.0％

9.4％
36

Key measures for the Third year (FY2022)
Theme for FY2022『 Practice business reforms adapted to changes in the environment 』

Strategies[Excerpt]
The most important issues we face in the third year (FY2022)

Receive domestic orders, strengthen and expand
revenue base
• Secure large-scale projects in Japan• Systematic staffing for large projects• Continuation of profit margin improvement measures

Large-scale
projects
Soaring material
・Tenjin Big Bang・Urban Area Redevelopment and labor costs
・Semiconductor-related plants, etc.

Development and expansion of business areas
・Expansion of renewable energy power generation business area
• Strengthening the capture of clean energy demand• Participation in smart cities and urban development

Implementation of training plans and use of
the LMS for training to ensure steady growth• Promotion of OJT training and verification of effectiveness• Steady operation and utilization of the LMS

Secure order acquisition

Reliable construction progress
Secure profits《Most Important Initiatives》◼ Improving Productivity by Implementing Business Reforms
１．Thorough review of business processes
２．Promotion of fundamental work style reform (optimal operation of all
departments throughout the company)
３．Effective utilization of construction forces (strengthening of personnel
structure to enable company-wide cross-function)◼ Promote price negotiations to reflect rising material and labor costs

Pursuit of productivity and strengthening ofbusiness foundation through DX• Efficient operation through DX• Research and study of BIM and advanced digital technologies• Creation of new innovations

Strengthen governance structure and adhere tocompliance• Development of governance standards with prime market
transition• Consideration of system audits through DX

37

Actual results of recruitment of human resources(Kyudenko individual) and workforce planning≪ Comparison in actual results of recruitment
for April 2022 with other companies≫≪ Actual results of periodic recruitment of engineers andskilled persons≫
2007～
2015

2016 2017 2018 2019 2020 2021 2022

Total
engineersand skilled
persons

Around
200

262

344

384

342

336

387

306

High
schoolgraduates

Around
150

177

248

271

253

253

263

University
graduates

Around
50

85

96

113

89

83

124

Kyudenko

Large electricalconstruction
companies

Large HVAC
companies

Super general
constructors

Total in all
professions

332

310～41080～100200～360

225

High school
graduates

230

Around220

Around10

Around10

81

University
graduates

102

90～19070～100190～340

Mar. 2020

Mar. 2021

Mar. 2022

Mar. 2023

Mar. 2024

Mar. 2025

Increase or
decrease inplanElectrical work department

2,274

2,359

2,468

2,599

2,750

2,893

About+550

HVAC work department

1,138

1,188

1,212

1,355

1,435

1,517

About+320

Year-end workforce of electricaland HVAC

3,411

3,547

3,680

3,954

4,185

4,410

About+870

Power distribution line
department

1,642

1,566

1,519

1,632

1,641

1,666

About+50

Other

1,446

1,469

1,508

1,402

1,397

1,408

Employees of single
Kyudenko

6,500

6,582

6,707

6,988

7,223

7,484

About+900

Employees of group10,018

10,198

10,52812,000

About+2,000≪ Planned year-end workforce until FY2025 March≫◼ Total 8,500 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 3,200+

About 1,300=

About 4,500
38

Appendix

Corporate profile

Company name

Kyudenko Corporation

Established

December 1, 1944

Capital￥12,561 million

Listed market
Code

Prime Market 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, 13 branches in Japan, 109 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: 10,528persons (March 31, 2022)
40

Promotion of Environmental Management

１◼
◼

Setting medium- to long-term environmental management goals※1

Reduce CO2 emissions intensity per sales of completed construction by at least 50% by 2030(compared to 2013)
Achieve carbon neutrality by 2050

※1 Since total CO2 emissions are expected to increase as a company grows, we used the unit emissions (total emissions divided by sales), which ismore easily comparable from year to year than total emissions.

２

Endorsement of TCFD recommendations■ In December 2021, as part of its commitment to environmental management, the company expressed its support for the

TCFD recommendations.
◼ Going forward, we will analyze the risks and opportunities that climate change presents for our businesses, and disclose
information on its financial impacts.

３

Establishment of new organization■Established the Environmental Management Promotion Office as a dedicated department to promote environmental management.
■Established the Sustainability Promotion Committee, headed by the president, to implement management that takes into
consideration "environment" "society" and "governance".

41

Development of new business areas： First introduction of Kyudenko EMS in Japan➤ First case in the nation for a municipality
Ogi City, Saga Prefecture
Project to Strengthen Disaster Prevention Functions of Ogi City Hall
・Use of electricity generated by photovoltaic power generation equipment in the building (off-grid system using renewable energy)・Installation of energy-efficient air conditioning and lighting equipment (CO2 emissions reduction through energy conservation)

Main Functions and Benefits of Installed Equipment
Solar Power Generation, Lead-acid Battery, EMS Equipment
Generated and stored power is automatically controlled by EMS.
All electricity in government buildings is provided by renewableenergy.

Parking lot on thewest side of thecity hall・Solar carporttype photovoltaic
facility
・Lead-acid batteries
・Control device
systemAir Conditioning Equipment, Lighting Equipment, BEMS Equipment"Yumeria (shelter)“Ogi City Hall
(Disaster Prevention Base)・BEMS
・Conversion of lighting
equipment to LED
・Power saving of air
conditioning equipment

The equipment with BEMS saves energy. This reduces the loadon solar power generation equipment.

Electricity is transmitted tolighting, air conditioning
equipment, and someelectrical outlets.

Normal use「Yumeria」
自営線

Solar
Power Generation
太陽光発電
538.2kWp
538.2kWp

BEMS

電力系統
Electric
Power System

EMS
flow of electricity
電気の流れ

The generated electricity is charged into lead-acid batteries.
The EMS controls its output to meet the demand. The poweris supplied to the power receiving and transforming facilities
within the agency.

Emergency use
・The system supplies power charged in storage batteries.
・It can supply power to government buildings for 72 hours.
・Electricity is also supplied to the welfare center "Yumeria",which serves as an evacuation center.

Lead-acid
Battery
鉛蓄電池
3,456kWh
3,456kWh

Data communication andデータ通信・制御
control42

Development of new business areas： Air conditioning/heat source control optimization system『Air conditioning/heat source control optimization systemusing AI optimization technology』
・Jointly developed with Grid Corporation, a company with proprietary cutting-edge AI technology, as a project partner
・An automatic operation system that calculates parameters and performs optimally to conserve energy and reduce CO2 by using AI,
which is to analyze and learn operational data of air conditioning and heat sources. (AI plans optimal operation schedules for air
conditioning heat sources)
・Simulated the performance for multiple large-scale facilities (scheduled to be introduced to a demonstration test at a facility in FY2022)

Support for the introduction of services that can be utilizedin various facilities with central heat source systems
It can be installed in a variety of heat source
configurations for various building applications toautomate and optimize operations.

Facility
Manageme
nt

系統1
系統2

Monitoring
equipment
operation

系統3

往きヘッダー

Provides operation results andoperation plans remotely

Remotecollection ofoperatingresults

Optimizatio
n system

熱源2
熱源3

Controlling
equipment
operation

Predicts air conditioning heat load by timeof day by system based on weather
conditions and past operational results

AI plans optimal
operation schedules
for air conditioning
heat sources

還りヘッダー
熱源1

01_Prerequisite information on air
conditioning control

AI

AI will develop an operation
plan for the facility.

02_Input of operation plan conditions
Depending on the input based on the heatsource load factor, the heat rate,
temperature, flow rate, pressure, etc.
Reproduces operation while taking physicalfactors into account
03_Data output after execution ofoperation plan
Data output of planned values such asenergy costs and CO2 emissions as well as
target values for flow and pressure when
executing the entered operation plan

04_Optimal operation planning
Over/Under Heat Generation and Cost and CO2
Savings Planning of operation plan for
optimization with evaluation function.

43

Promoting Diversity
Basic Policy on Diversity Promotion
Based on our Corporate Philosophy and Charter of Corporate Behavior, we believe that our greatest management
resource is our human resources. By respecting and utilizing diversity as a strength of our organization, we aim tocreate new value and enhance our competitiveness. We are committed to promoting diversity by setting thefollowing goals. Through these efforts, we will contribute to the achievement of the SDGs (Sustainable
Development Goals).

Corporate Philosophy
1.We contribute to society through providing agreeable environmental solution.
2.We keep challenging for sustainable development through our engineering strength

What we aim for1.We will create a corporate culture that respects and utilizes diversity.
We will create a corporate culture that respects and recognizes diversity interms of gender, age, disability, race, ability, values, sexual minorities, etc.,

and create a new value.
3.We aim to create mutual respecting environment in Kyudenko which utilize

and develop employees’ personality.

and maximizes its use as an organizational strength.
2.Fostering diverse human resources and promoting their activities.
We will promote the hiring, training, and promotion of diverse humanCharter of Corporate Behavior
1.・・・・・・・・
4. By realizing employee comfort and affluence, we will ensure a safe, easy-towork-in, and open workplace environment, and create a bright and energetic
corporate culture that respects the personality, individuality, and diversity of
our employees.

resources, and support diverse career development and skills development.
3.We will create an attractive work environment that is rewarding andchallenging.
We will strive to improve engagement by creating a workplace environment
in which employees want to work and continue to work, including anenvironment in which each employee can maximize his or her abilities and10.・・・・・・・

in which diverse and flexible work styles are possible.

Basic Policy on Diversity Promotion

Relevance to SDGs

Commitment video by thepresident

44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.

45

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

Kyudenkoadministration46

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％47

【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 Line48

【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 Connected49