Securities code：1959

FY ended March 2019, 1Q

Outline of balance sheet(Million yen)

End ofMar. 2017

End ofMar. 2018

End of June2018

158,172

178,884

153,694(52.6%)(55.1%)(50.7%)

142,306

146,034

149,359(47.4%)(44.9%)(49.3%)

300,478

324,919

303,054(100.0%)(100.0%)(100.0%)Current
liabilities

124,745

130,222

104,935(41.5%)(40.1%)(34.6%)

Fixedliabilities

34,23030,55734,648(11.4%)(9.4%)(11.5%)

158,975

160,780

139,583(52.9%)(49.5%)(46.1%)

Total net
assets141,503

164,139

163,470(47.1%)(50.5%)(53.9%)

Total liabilities
and net assets

300,478

324,919

303,054(100.0%)(100.0%)(100.0%)Current
assetsFixed assets
Total assets

Total
liabilities

Increase/decrease

Main factors behind increase/decrease▲25,190

Cash and deposits ▲2,441
Trade notes and accounts receivable ▲26,484+3,325Investment securities +4,383▲21,865▲25,287+4,091

Trade notes and accounts payable ▲19,483
Short-term debt ▲5,257
Income taxes payable ▲4,788
Long-term debt +5,280
Liability for retirement benefits ▲773

▲21,196▲668

Retained earnings ▲1,275
Unrealized holding gain(loss) on securities +616

▲21,8651Outline of P/L March 2018
(Million yen)March 2018

March 2017
ResultResult341,771

360,872(100.0%)(100.0%)Gross profit

51,951

56,659(15.2%)(15.7%)

Operating profit

30,732

34,726(9.0%)(9.6%)

Ordinary profit

32,18737,342(9.4%)(10.3%)Net profit

22,29725,296(6.5%)(7.0%)

Sales

Net profit per share¥327.22Year-onyear

Plan (2017.4.28)

105.6%

370,000

109.1%

58,000113.0%

36,000116.0%

37,000113.4%

24,500¥356.89(100.0%)(15.7%)(9.7%)(10.0%)(6.6%)

Progress

97.5%

97.7%

96.5%

100.9%

103.2%¥345.662

Outline of P/L March 2019, 1st quarter(百万円、下段は構成比)

March 2018. 1Q

March 2019. 1Q
ResultSales

Gross profit

Operating profit

Ordinary profit

Net profit

Net profit per stock

65,64970,792(100.0%)(100.0%)10,262

9,199(15.6%)(13.0%)

4,527

2,938

(6.9%)(4.2%)

5,020

3,565

(7.6%)(5.0%)

3,346

2,265

(5.1%)(3.2%)¥ 47.48

1st-on-1stt

March 2019. 2Q
Forecastan107.8%

165,000

89.6%

26,00064.9%

13,50071.0%

15,000

67.7%

9,800

¥31.85(100.0%)(15.8%)(8.2%)(9.1%)(5.9%)

Progress
42.9%

35.4%

21.8%

23.8%

23.1%

¥137.763

Order received / Sales by department March 2018

(Million yen)

Sales of each department(Million yen)Orders of each department■2016.3 ■2017.3 ■2018.3■2016.3■2017.3 ■2018.3
200,000

200,000

172,689
167,040
153,447
136,762

137,924
126,669

120,414101,164
94,13596,38494,001

74,90549,44448,065 45,157

47,41046,633
46,963085,79560,901
50,76447,79347,00546,5370Powerdistribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

Power
distribution
line work

Electricalwork

HVAC work

Solar plant
constructionwork

4Order received / Sales by department June 2018

(Million yen)

Sales of each department■2016.6■2016.6 ■2017.6 ■2018. 6(Million yen)Orders of each department

69,920■2017.6

70,00070,000■2018.6

45,164

41,727
38,665 37,732
35,98524,942
23,66222,502
22,73619,804
10,318
11,121
10,832

14,777

12,8589,228
8,096

10,933
11,393
11,31915,697
9,190
2,429

0

0

Power
distribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

Power
distribution
line work

Electricalwork

HVAC work

Solar plant
constructionwork5Order received / Sales by customer March 2018

(Million yen)

Sales of each customer(Million yen)Orders of each customer■2016.3 ■2017.3 ■2018.3■2016.3 ■2017.3

350,000

350,000■2018.3

311,604
298,116
289,923

263,796249,215
212,150

47,881
48,652
47,62536,825

49,13647,51431,048 34,725

47,981

30,51525,17026,1260

0

Kyushu ElectricPower Co,

Government/Public

Privatecompanies

Kyushu ElectricPower Co,

Government/Public

Privatecompanies

6Order received / Sales by customer June 2018

(Million yen)

Sales of each customer■2016.6 ■2017.6 ■2018.6(Million yen)Orders of each customer■2016.6 ■2017. 6 ■2018.6
120,000

120,000

106,242
88,25370,36452,656
46,81046,00910,941

11,083 10,325
4,253

4,791

12,227
11,163
10,134
11,6008,696
11,476

4,010

0

0

Kyushu ElectricPower Co,

Government/Public

Privatecompanies

Kyushu ElectricPower Co,

Government/Public

Privatecompanies

7Order received / Sales by region March 2018
(Electrical & HVAC work excluding Solar plant construction work)(Million yen)

Sales of each region(Million yen)Orders of each region■2016.3 ■2017.3 ■2018.3■2016.3 ■2017.3 ■2018.3

220,000

220,000

198,203

197,665

178,698
168,191
153,250

154,971

62,97456,89543,862
38,59434,44338,62926,852
21,247
11,102

5,198
4,026
2,778

31,690 21,567
11,811

5,472 5,247
2,164

0

0

KyushuTokyo Area

Osaka Area

Overseas

KyushuTokyo Area

Osaka Area

Overseas8Order received / Sales by region June 2018
(Electrical & HVAC work excluding Solar plant construction work)(Million yen)

(Million yen)Orders of each region

Sales of each region■2016.6 ■2017.6 ■2018.6■2016.6 ■2017.6 ■2018.6

80,00075,89680,00057,142
55,34629,32926,62432,675
24,683
17,633

17,978

10,9488,505
7,125

4,8603,045
898
2,867
771

7,638
6,414
4,094
775

0

KyushuTokyo Area

Osaka Area

Overseas

1,231
652
483

0

KyushuTokyo Area

Osaka Area

Overseas9Order received / Sales by region March 2018
(Solar plant construction work)(Million yen)

Sales of each region■2016.3 ■2017.3 ■2018.3(Million yen)Orders of each region■2016.3 ■2017.3 ■2018.3

70,00070,00052,63740,232 41,129

35,03926,758 27,059
23,28415,03810,363

9,467

13,611
9,874

7,647
8,630

7,057
4,891

2,663
0

4,743

0

KyushuTokyo Area

Osaka Area

KyushuTokyo Area

Osaka Area

10

Order received / Sales by region June 2018
(Solar plant construction work)(Million yen)■2016.6 ■2017.6■2018.6■2016.6 ■2017.6

18,000(Million yen)Orders of each region

Sales of each region■2018.6

18,00014,987

7,012

6,719
5,102

4,486
3,369
3,270
2,222

1,594

2,504
2,098

914

1,769

649
341

80 61

318

0

KyushuTokyo Area

Osaka Area

0

KyushuTokyo Area

Osaka Area

11

Year-end amount of works on hand(Million yen)Order stock of each department■2016.3 ■2017.3 ■2018.3

140,000

Image

132,519
118,676
97,598 100,350
94,744
83,286

84,257
63,97561,382

1,121
800 1,184
0Power
distribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

Ken Corporation Ltd.
Yamashita-cho A block hotel plan12

Situation of order stock June 2018

(Million yen)Order stock of each department■2016.6■2017.6■2016.6

180,000

140,198 146,241
131,095
116,750
82,07382,589102,345
93,551
79,618

1,708
1,288 1,418
0PowerElectrical work HVAC work
distribution
line work

Solar plant
construction
work

13

Plan for March 2019
(Million yen)

Plan for March 2019

March 2018
ResultMarch 2019

360,872

385,000(100.0%)(100.0%)56,65963,000(15.7%)(16.4%)

34,72638,000(9.6%)(9.9%)

37,34241,000(10.3%)(10.6%)

Current (quarter) net
profit25,29628,000(7.0%)(7.3%)

Current net profit per
stock¥356.89

Sales

Gross profit

Operating profit

Ordinary profit

Dividends

Year-on-Year

2nd quarter total

106.7%

165,000

111.2%

26,000109.4%

13,500109.8%

15,000110.7%

9,800¥393.59(100.0%)(15.8%)(8.2%)(9.1%)(5.9%)

2nd-on-2nd103.5%
106.5%
101.7%
100.3%
101.3%¥137.7690円¥100Interim ¥40

Interim ¥50

14

Orders & Sales plan by department(Million yen)

Sales of each department■2017.3 ■2018.3

240,000■2019.3（plan）(Million yen)Orders of each department■2017.3 ■2018.3■2019.3（plan）

240,000

204,000
172,689

170,000
153,447
137,924

167,040
130,000
120,414

119,500
101,164
94,13547,41046,63345,50096,38449,44445,15740,00047,793
46,53746,00060,901
50,76430,0000

0Power
distribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

Power
distribution
line work

Electricalwork

HVAC work Solar plant
construction
work

15

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

Deals through investment in equity(make capital investment and record theentire operation to other operations
sales)(acquire investment securities and record anamount equal to the equity to non-operating
revenues)

Depreciated at the decliningbalance method
Numberof power
plantsGeneration
capacity(the entire
operation)

Generation
capacity(that equal tothe equity)

In operation

48

90MW

85MW

Under
construction

2

3MW

3MW

Plan

-

-

Total

50

93MW

2.0 to 2.4 billion yen at its maximum

Depreciated at thestraight line method
Numberof power
plantsGeneration
capacity(the entire
operation)

Generation
capacity(that equal tothe equity)

In operation

40

313MW

97MW

Under
construction

7

236MW

59MW

-

Plan

4

143MW

55MW

88MW

Total

51

692MW

211MW

1.8 to 2.0 billion yen at its maximum

16

Solar power generation business
Mega solar power plant

Ishikawa

Miyagi
Fukushima

Okayama

Gotou

Hiroshima

Deals operated by group- In Operation

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

Aichi- In Operation- Under construction- Preparing for construction

Amami

Nara Mie17

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

3

73MW

15MW

Under
construction

2

72MW

34MW

Plan

-

-

-

Total

5

145MW

49MW
18

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 success20

Numerical target≪ Main theme ≫Challenge to a Further Growth～To the next growth stage～≪ Numerical target at March 31, 2020≫(Results in March 2018)

S a l e s

400 BillionYen

360 BillionYen

Gross Profit Ratio

Over
％
15

15.7 ％

Operating Profit Ratio

Over
％
9

9.6 ％

R O E

Over
％
14

16.8 ％

21

Road map of sales plan
(Billion yen)
400

50

40
45
50

Solar plant
construction

48

66

170

184

153
138
Electrical construction

127

111

HVAC
80

94

101

120

105

47

47

47

46

47

15

13

15

10

14

2016.32017.32018.32019.32020.375

Power distribution line
45
Others0

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

22

Breakdown of sales plan （March 2020）

Total sales

400 Billion yen

Each business lines

By region (Electrical and HVAC)

Solar plant construction

50 Bilion yen

Kyushu176 Bilion yen

Electrical and HVAC

289 Bilion yen

Tokyo

73 Bilion yen

Power distribution line

47 Bilion yen

Kansai/Okinawa

23 Bilion yen

Others

14 Bilion yen

Over seas

17 Bilion yen

Renewal &Renovation Services
which is included inabove figures

130 Billion yen
23

Actual results of recruitment of human resources (single Kyudenko)
and workforce planning≪ Comparison in actual results of recruitment
for April 2018 with other companies≫≪ Actual results of periodic recruitment of engineers andskilled persons≫
2006

2007～2014

2015

2016

2017

2018

Total
engineers andskilled persons

133

Around 200

241

262

344

383

High
schoolgraduates

111

Around 150

163

177

248

271

University
graduates

22

Around 50

78

85

96

112

Kyudenko

Large electricalconstruction
companies

Large HVAC
companies

Super general
constructors

Total in all
professions

412

330～34060～100230～290Highschoolgraduates

272

Around 200

Around 10

Around 10

University
graduates

140

130～14060～90

230～280≪ 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

2,117

2,228

About +500

HVAC work department

921

990

1,052

1,100

1,160

About +240

Year-end workforce of electricaland HVAC

2,649

2,816

3,142

3,217

3,388

About +740

Power distribution line department

1,869

1,816

1,741

1,711

1,664

About ▲210

Other

1,394

1,408

1,418

1,423

1,433

About +40

Employees of single Kyudenko

5,912

6,040

6,301

6,351

6,485

About +570

Employees of group

8,976

9,287

9,843

10,000

About +1,000

Total 8,000 employees in technical field of total 9,800.
(Kyudenko )(Subsidiaries)

Number ofsite
technicians

About 2,000+

About 2,100=

About 4,100

Number of
construction
managers

About 2,900+

About 1,000=

About 3,900

24

Human resources development
Kyudenko Academy training base for Kyudenko group was set up in 2012.
Electric post climbing training

Electric wiring training

Kyudenko Academy

Mental training hall

25

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 FY2017 Employees

①

2014

Koderadengyo

Osaka

1,566 million yen

54

②

2014

Kakusokukeisou Fukuoka

1,368 million yen

51

③

2015

Kawachikougyou

Osaka

718 million yen

15

④

2015

Syoueidensetu

Chiba

1,098 million yen

20

⑤

2016

Kyusetukougyou Nagasaki

722 million yen

9

⑥

2017

Jinnouchikoumutenn

293 million yen

29

⑦

2018

Sanyudensetu

Fukushima 1,061 million yen

41

⑧

2018

Ergotech

Yokohama 7,672 million yen

143

⑨

2018

Seiwakougyou

Ⓔ

Saga

Ibaragi

1,429 million yen

26
26
33

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 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
50
02013.32014.32015.32016.32017.32018.3

Actual and expected results of sales

80,000150

2019.32020.32021.3

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

60,000

150
100

40,00050

20,000002013.3150,000

2014.32015.32016.32017.32018.3

Actual and expected results of works in hand

100,000

2019.32020.32021.3Larger deals will reduce the workforce
necessary in amount.

100
50

50,000002013.32014.32015.32016.32017.32018.32019.32020.32021.327

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(Millions)Tokyo Olympic (2020)

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

8
800
7
700

Linear Shinkansen Line 6600
opened to Osaka(2045)

60

5
500
50

4
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

2
200

Working age population
Forecast: 45.29 million
1100(2065)(2015)

0

年1960

3
300

00

1970

1980

1990

2000

2010

2020

2030

2040

2050

28

Fukuoka Waterfront Next, Tenjin Big Bang
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)

Waterfront area
Sanyo Shinkansen line

Fukuoka urban expressway

5 minutes

10
minutes
Hakata Station area

Showa Street
10
空港まで
minutes to
10分
the airport

Meiji Street

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

5 minutes

Fukuoka City Subway Nanakuma Line29

Details of diverse business models (facility work)Ⓐ

Business model

Characteristics

Targets

Competitors

Strengths of Kyudenko

Proposal and originalcontract type・One-stop construction ofelectricity, air and water facilities

Ordinary companies:

Regional mid- and smallsized

Engineers’ recommendation ability

Increasing market share
while keeping a firm
footholdsuch as in Kyushu andOkinawa・Sales of solutions

officesfacility work operators

・Aftersales services

commercial facilities

construction companies

Network of business offices

・Local based- business offices

plants・Engineer＝salesperson

hospitals and others

Differentiation from

Co-existence with communities

・Mid- and small-sized deals withhigh marginsⒷ

Sub-contract type

Regionally expanding to
Kansai, Tokai,・Subcontract from generalcontractors
・New construction ⇒Maintenance・Making suggestions for
improvement during construction

large facility work
operators

General contractors

Major facility work
operators

Design offices

across the country
Ability of direct construction

・Large deals with low margins

Tohoku and Chugoku

Differentiation fromin addition to Tokyo
Metropolitan AreaⒸ

Capital participation type

Nationwide
renewal energy
development
and energy service
operations
ＰＦＩ

Ability to collect workforce

Cost competitivenessmid- and small-sizedfacility work operators

・Capital participation in
operations

Public sector,

・General contractors

Experiences and know-how

・Participation in contractees

land owners, trading
companies,

developers,

One-stop construction for electricity, airand water facilities

Securing profits of constructions

developers,,energy companies

Differentiation from competitors

・Bearing development riskenergy companies

and others（possible to make independentjudgments)

Securing investment income

and others

Differentiation fromfacility work operators

Credibility from regions
and existence30