1st section of Tokyo stock exchange : 1959

KYUDENKO CORPOREATIONFY ending March 2019 2nd Quarter
Results briefing
Nov. 1st ,2018

All Rights Reserved. Copyright KYUDENKO CORPORATION

0Table of contents
Overview of business results

2

Plan for fiscal year

Highlights

3

Plan for fiscal year

P/L

4

Orders/sales by department

26

5~7

Power distribution line work27

Trend of dividends

28

Mid-term management plan・growth strategy

29

Numerical targets

30

Road map of sales plan

31

Breakdown of sales plan

32~33

Factors of change in OP
Sales, Orders and Works on hand
1. Orders received/sales by department

8

2. Orders received/sales by customer

9

3. Orders received/sales by region
4. Year-end amount of works on hand

10・11

12

Actual results of works

13

B/S

14

C/F

15

Capital expenditure

16

Power generation business

17～19

21~25

Axes of the growth strategy and key measures

34

Recruit of human resources

35

Details of diverse business models

36

Post-2020 Prediction about industry

37

Kyudenko EMS

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20

28～33

1

Overview of business results

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2High lights
Orders
HVAC, Solar plant construction increased. Electrical, expecting large project in 2 nd half.

¥216,986million Exceeded 2017’ 1 half result by order increased in Kyushu.
st2nd-on-2nd 103.2％

Sales
By newly consolidated subsidiaries, HVAC increased.
increase backed by increase of human resource¥165,111million Steadyand in works on hand (¥331billion).

2nd-on-2nd 103.6％

Operating profit
Decreased by depression of gross profit ratio and increase of bonus.
profit ratio was depressed by decrease of Kyudenko¥10,886million Gross(parent company individual) construction sales.

2nd-on-2nd 82.0％

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3

Outline of P/LMarch 2019, 2nd quarter(Million yen)March 2019, 2Q

March 2018,
2Q Result

Result159,378

165,111(100.0%)(100.0%)Gross profit

24,41023,033(15.3%)(14.0%)

Operating profit

13,274

10,886(8.3%)(6.6%)

Ordinary profit

14,95912,428(9.4%)(7.5%)

9,677

8,013

(6.1%)(4.9%)

Sales

Net profit

Net profit per share¥136.91

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2nd-on-2nd

Plan (2018.4.27)

103.6%

165,000

94.4%

26,00082.0%

13,50083.1%

15,000

82.8%

9,800

¥112.64(100.0%)(15.8%)(8.2%)(9.1%)(5.9%)

Progress

100.1%

88.6%

80.6%

82.9%

81.8%

¥137.764

Factors of change in OP
14（Billion Yen）

13

13

Refer P6A
Bonus
increase

12

Impact of
newly
consolidated
subsidiaries
Sales
Increase of
decreased inother fixed
Refer P7
electrical &
cost
HVAC
(overhead
Sales
Depression ofcost) in SG&A,
increased ingross profit
Gross Cost
solar plant
Other businessPowerratio inconstruction
distribution
electrical &line work
HVAC
Power
11
Depression ofgeneration
gross profit
ratio in solar
business
Operatingplant
profit inconstruction

B

C

11

Sales of Electrical and HVAC wasdecreased excluding impact of sales
increased by newly consolidated
company and solar power plant
construction.

D

H

E

Operatingprofit inMarch, 2018
2Q

G

F1

F2

March, 20192Q

10
Main factors failed achieve plan

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5

Increase of Fixed cost（Over head cost）
and factor of gross profit ratio depression(Million Yen, composition ratio)

Increase of
Bonus

A

Increase of other fixed cost (overhead cost) in
SG&A and Gross Cost

B

Sales of construction
work

C

5,099

Sales of otherbusiness

140

Sales
Profit of construction
work

Severance benefit UP in
Kyudenko +118

△682

△252

△682

Travel expenses +43 etc.

128

217

△811

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△469

64

(12.0%)
Severance benefit UP in
Kyudenko +18
etc.

Operating profit(11.1%)

631△252
Salary +245

SG&A

5,239
566

Rent +74

Associated with strengthen
outside Kyushu region

Profit of other business

Gross profit

Impact of newly
consolidated
subsidiaries

665（Including depreciation of
goodwill 31）△34(△0.7%)

6

Factor of gross profit ratio depression
Breakdown of construction sales（Kyudenko individual：excluding power distribution line work）

Whole construction sales decreased 3.0billion yen.
Sales from projects delivered decreased 7.8billion yen.
Sales from projects Not delivered increased 4.8billion yen.

Construction sales（Million yen）
150,000

Difference of Project profit ratio between delivered items
and Not delivered items is about 6%.
Average profit ratio of delivered items
4.8billion yen×6％＝About 0.3billion yen

2017’
09

2018’
09

50%

47%

53%

Delivered

50%

53%

47%

Sales fromdelivered items

Not
delivered

2016’
09

Sales fromNot delivered items

Composition of construction sales

F

Average profit ratio of
Not delivered items

About
６％

100,000

Project Not delivered（Percentage of completion method）
Project delivered（Percentage-of-completion method）

50,000

Project delivered（Completed-contract method）
0

2016’09
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2017’092018’097

Order received / Sales by department

Sep. 2018

The decrease in parent company's sales of Electrical resulted in a decline as a whole.
Sales of HVAC & Solar plant construction increased steadily.
(Million Yen)

Sales of each department■2016.9■2017.9

Impact of newly
consolidated subsidiaries■2018.9

Electrical 401

120,000(Million Yen)

Orders of each department

Impact of newly
consolidated subsidiaries■2016.9

120,000■2017.9

111,415

Electrical 535■2018.9

HVAC 4,077

HVAC 4,697

88,67983,91275,656
67,20565,04062,09255,04921,59922,401
22,43058,71351,46744,96437,29925,895
21,102
18,462

33,919 35,247
22,69822,16923,153
11,8650

0PowerElectrical work HVAC work
distribution
line work

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Solar plant
construction
work

Power
Electrical work HVAC work
distribution
line work

Solar plant
constructionwork

8Order received / Sales by customer Sep. 2018
Both Private and Public increased, and Keeping high level.
(Million Yen)

Sales of each customer■2016.9■2016.9■2017.9■2017.9■2018.9■2018.9

170,000(Million Yen)

Orders of each customer

168,331
166,906

170,000

169,801

123,094
116,535
107,258

21,601
22,666 22,639
10,750 13,859

23,815 22,961
22,438

11,565

14,42519,04324,7460

0

Kyushu ElectricPower Co,

Govermment/Public

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Privatecompanies

Kyushu ElectricPower Co,

Govermment/Public

Privatecompanies

9Order received / Sales by region Sep. 2018
(Electrical & HVAC work excluding Solar plant construction work)

Orders in Kyushu region increased, especially HVAC. Steadily share up.
(Million yen)

Sales of each region■2016.9 ■2017.9 ■2018.9(Million yen)Orders of each region■2016.9 ■2017.9 ■2018.9

130,000

130,000

123,445

105,627
115,548

71,475 78,433
69,73938,162
25,83321,70034,781
32,692

16,81912,554
8,357

11,324
10,457
7,555
1,987
870
965

7,603
2,174
1,697 1,688
00KyushuTokyo Nagoya Area Osaka Area

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Overseas

KyushuTokyo Nagoya Area Osaka Area

Overseas10Order received / Sales by region Sep. 2018
(Solar plant construction work)
Order from huge project in Nagoya Area.
(Million yen)

Sales of each region■2016.9 ■2017.9 ■2018.9(Million yen)Orders of each region■2016.9 ■2017.9 ■2018.9

50,00050,00028,816

26,71517,018
11,648

8,021

8,188

6,058

5,363

8,028 7,017

5,078

2,642

4,751

4,875

1,440
96 2260

KyushuTokyo Nagoya
Area

Osaka Area

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503

0KyushuTokyo Nagoya
Area

Osaka Area

11

Situation of works on hand Sep. 2018
Order stock increase due to steady order.
Solar construction, Tokyo area and Kyushu area.
(Million yen)Order stock of each department

New orders in FY ended Sep. 2018■2016.9 ■2017.9 ■2018.9
170,000

154,339

Image

140,171
140,277
121,714
114,495
110,200
84,36682,79569,257

1,524

1,663
1,474

0

Power
Electrical work HVAC work
distribution
line work

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Solar plant
construction
work

12

Actual results of works Sep. 2018

Image

Image

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13

Outline of balance sheet（百万円、下段は構成比）

End of Mar.
2018

End of Sep.
2018

178,884

154,465(55.1%)(50.5%)

146,034

151,441(44.9%)(49.5%)

324,919

305,907(100.0%)(100.0%)130,222102,082(40.1%)(33.4%)

30,55734,278(9.4%)(11.2%)

160,780

136,360(49.5%)(44.6%)

164,139

169,546(50.5%)(55.4%)

Total liabilities

324,919

305,907and net assets(100.0%)(100.0%)Current assets
Fixed assets
Total assets
Current liabilities
Fixed liabilities
Total liabilities
Total net assets

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Increase/decrease

Main factors behindincrease/decrease▲24,419

Trade notes and accounts receivable ▲24,488

5,407

Investment securities +6,851▲19,012▲28,1403,721

Trade notes and accounts payable ▲25,168

Long-term debt +5,605▲24,419
5,407

Retained earnings +4,472▲19,01214

Outline of C/F(Million Yen)

Sep. 2017

Sep. 2018

Details of statement to
Sep. 2018
Income before income taxes and minority
interests +11,977

Cash flow from operating activities

18,464

8,771

Decrease in trade notes and accounts
receivable +24,479
Decrease in trade notes and accounts
payable ▲25,133

Cash flow from investment activities▲717▲7,812

Free cash flow

17,747958▲17,720▲3,942105▲3,03530,02734,50530,133

31,469Cash flow by financial activities
Increase/decrease of cash andcash equivalents
Cash and cash equivalents at the
beginning of the period
Cash and cash equivalents at theend of the period
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Purchase of investment securities ▲6,629
Purchase of property, plant and equipment▲1,106

Cash dividends paid ▲3,552

15

Capital Investment
FY2018 Mar.

Capital investment

4.2 billion yen

1.6 billion yen

1.7 billion yen

1.1 billion yen

Replacement of business offices
of Kyudenko

Facility work

EMS demonstration facilities in
Sumba Island
Machinery and equipment, etc. forconstructions
Lease contracts on specialized
vehicles for construction

2.4 billion yen
OthersSolar power plant facilities

Depreciation

All Rights Reserved. Copyright KYUDENKO CORPORATIONFY2019 Sep.

5.5 billion yen

Replacement of corporate
dormitories’ facilities andreconstruction of business offices
of Kyudenko

Machinery and equipment, etc. forconstructions

Lease contracts on specialized
vehicles for construction

0.5 billion yen
Solar power plant facilities

2.9 billion yen
16

Investment in Power Operations (Solar Power Plants)
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- In Operation- Under construction

Amami

Nara Mie

Aichi- Preparing for construction

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17

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

41

332MW

105MW

Under
construction

1

1MW

1MW

Under
construction

8

311MW

86MW

Plan

-

-

-

Plan

2

51MW

20MW

Total

50

93MW

88MW

Total

51

694MW

211MW

2.0 to 2.4 billion yen at its maximum

1.8 to 2.0 billion yen at its maximum

The suppression of solar power’s output was first implemented by KEP on 13 th and 14 th Oct in Kyushu main land.
Details
Impacts

9:00～16:00 13th Oct.

320MW (Suppression ratio 5.3％)

9:00～16:00 14th Oct.

540MW (Suppression ratio 9.8％)

13 th Oct.

No instruction to stop power generation (No impact)

14 th Oct.

Instruction to stop 8 power station 24.5MW(Ownership percentage)out of 79 power station 134MW in a whole
Loss of profit might be 3 million yen.(assumption)

Projects in above table are old regulation (suppression is up to 30 days rule).
Business plans with 8% suppression instructions incorporated
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18

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
19

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19

Plan for fiscal year

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20

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 profit

25,29628,000(7.0%)(7.3%)

Current net profit
per stock¥356.89

Sales

Gross profit

Operating profit

Ordinary profit

Dividends

Year-on-Year

2Q Result106.7%

165,111111.2%

23,033109.4%

10,886109.8%

12,428110.7%

8,013¥393.57(100.0%)(14.0%)(6.6%)(7.5%)(4.9%)

Progress

42.9%
36.6%
28.6%
30.3%
28.6%

¥112.6490円¥100Interim ¥40

Interim ¥50

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21

Background of full year plan
(Million Yen)

Mar.2018
ResultSales of construction
work

Mar.2019
Plan

346,403

375,000

14,46810,000360,872

385,000

Profits from eachproject

73,59580,000(21.3％)(21.3％)

Fixed cost(overhead cost)

19,85620,000profit of construction
work

53,73860,000

2,921

3,000

Gross profit

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

SG&A

21,93225,000Operating profit

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

Sales of otherbusiness
Sales

Profit of otherbusiness

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備 考
Assume progress of abundant works on hand. (next page)
2nd half plan 220 billion yen. 1st half result 151 billion yen.
(exclude newly subsidiaries’ sales result 5 billion yen)

Aim to offset increase of fixed cost due to bonus up by
margin up.
1st half result 10,343. (increase 712)
(including 1st half bonus up 682)

1st half result 12,147. Not assume big increase in 2nd half.
(increase 1,011) (newly subsidiaries 664, bonus up 128）22

Basis of sales plan
Analysis of works on hand（Kyudenko individual）
Amount of construction works on hand by
delivery schedule timing

Sep.
2016

Sep.
2017

Sep.
2018

Works on hand（Billion yen）

（Billion yen）

400

361

Increase/
Decrease

350

319
Deliver on after
next FY

284
105

157

132

300

△ 25
250

Deliver on next
FY

200

102

93

149

+ 55
×1.6

150

100

Deliver on
half

77

69

80

+ 11
×1.2

50

2
nd

0

Sep. 2016
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Sep 2017

Sep 2018
23

Correlation of passage of passage and progress of work
(Kyudenko individual)

In percentage of completion method, construction work progress rapidly after
half of the construction period has passed.

Standard progress curve of construction in percentage of completion method

80%

50%

20%

0%

Progress of construction work
(Accounting for sales)

100%

R² = 0.6144

20%

50%

80%

100%

Passage of construction period
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24

Analysis by scale of order(Kyudenko individual : excluding power distribution work）
Orders from small-scale projects less than 300 million yen for one project contract
which are short construction period and relatively high profit margin.
Orders from small size projects were steady in 1st half.

(Million yen)■2016.9 ■2017.9 ■2018.9

50,998 50,090 51,626

24,860 25,426 26,626

100～300 million yen

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Under 100 million yen

25Orders & Sales plan by department
The orders of the solar plant construction expects gradual decrease.
The sales amount greatly spreads by the abundant amount of works on hand.
(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
94,13547,41046,63345,50096,38449,44445,15740,0000

PowerElectrical work HVAC work
distribution
line work

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Solar plant
construction
work

47,793
46,53746,0000Power
distribution
line work

60,901
50,76430,000Electricalwork

HVAC work

Solar plant
construction
work

26

Power distribution work
Present condition

In addition to the two Sendai nuclear
power plants, two of the Genkai that had
been delayed finally restarted.

 In the first half, orders decreased sharply.
In the second half, expect for order volume
increase and unit price revision.

Tasks and actions
 A cost cut by our technology development and efficiency is important,for Electricity Systems Reform , we improve the profitability by costcompetitiveness having high transparency.
 We pursuit an appropriate profit rate appropriate to the capital cost for the
maintenance of the distribution network, the security of the personnel required who
can cope at a peak, the investment that is necessary for correspondence inemergency.
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27

Trend of dividends
Following expansion of business results, we plan to increase the dividends for six
consecutive years from the fiscal year ended March 2014.

100

special

100

90

90

special

80

10
70

70

10
60

special50

Memorial

40

special30

special

20

10
10

13

45
15

25
2
7

3

0

Mar,2011

Mar,2012

Mar,2013

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Mar,2014

Mar,2015

Mar,2016

Mar,2017

Mar,2018

Mar,2019

28

Mid-term management plan
growth strategy

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29

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 ％All Rights Reserved. Copyright KYUDENKO CORPORATION

30

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）

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31

Breakdown of sales plan

Total sales（March 2020）

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 inclued
in above figures

130 Bullion yen

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32

Strengthening of overseas management basein South-East Asia
Example of construction(Singapore)
TUAS Power plant

Asia Projects Engineering Pte. Ltd. (Singapore)

Kyulien Environment Improving Co.,Ltd. (Taiwan)

・By March 2020,
Overseas sales ratio will be 5.0%

Overseas personnel will be 600 employees

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33

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 success

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34

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

Large electricalconstruction
companies

Large HVAC
companies

Super general
constructors

Total in all
professions

412

330～34060～100230～290271

Highschoolgraduates

272

Around 200

Around 10

Around 10

112

University
graduates

140

130～14060～90

230～2802006

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

University
graduates

22

Around 50

78

85

96

≪ 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

All Rights Reserved. Copyright KYUDENKO CORPORATION

35
35

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

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

ＰＦＩ

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and others

Differentiation fromfacility work operators

Credibility from regions
and existence36Post-2020 Prediction about industry
Construction demand will be supported by large-scale projects and renovation of aging infrastructure
built more than 50 years ago. The labor shortage will accelerate with the decline in the working age
population, with a rapid falloff in supply capability.
Real construction
investment(Trillions of yen) 非住宅建設
90
80

Past construction
investment amountNo. of constructionindustry employees

住宅建設

No. of constructionindustry employees(Thousands)

Tokyo Olympic (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

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

20
200Working age population
Forecast: 45.29 million 10
100(2065)(2015)

0

年1960

30
300

00

1970

1980

1990

度
All Rights Reserved. Copyright KYUDENKO CORPORATION

2000

2010

2020

2030

2040

2050

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“Kyudenko EMS” can distribute renewable energy stably
Energy management system○ Movement of the spread of renewable energy accelerates globally,
but there are many electricity instability areas including a remote islandand the distant place in the developing country and exists.
The Kyudenko EMS is the system which can raise efficiency of therenewable energy generation to the maximum.
○ In 2016, the Kyudenko EMS was adopted as "low-carbon innovation
creation business for developing countries" from Ministry of the Environment
and installed ENS proof facilities in the Indonesian eastern part, SUMBA Island,
population is approximately 650,000. It supplies electricity to a local micro gridstably now.

By stable electricity distribution in
Kyudenko EMS, We enlarge an
opportunity to create local industry andcontribute to carbon footprint reduction.

Water
Air

Fishery

Cloud server

Solar energy plant

Lead storage battery

Emergency diesel generator

Transportation

ResortDC/AC invertor
Solar energy
plant

Micro grid network
State-run electric power company’s
small hydroelectric power station

Power gridState-run electric power company’s
large diesel generator

Facility

Agriculture
MaintenanceConstitution of the proof system of SUMBA island model○ The Kyudenko EMS can output in a stable wave pattern electricity, without leaving,over the intense electricity of the change derived from renewable energy.
In addition, we succeeded in increasing battery life more than ten years
by our charge-discharge control technology of the lead storage battery.
○ The Kyudenko EMS can improve the ratio of the renewable energy generation
drastically, in micro-grid depending on diesel generation.

All Rights Reserved. Copyright KYUDENKO CORPORATIONIn March, 2018, Kyudenko EMS was
adopted by "private technical spreadpromotion business" of the Japan
International Cooperation Agency(JICA).
We will aim at the spread of the
Kyudenko EMS in future in Indonesia.

38Corporate profile
Company name

Kyudenko Corporation

Established

December 1, 1944

Capital￥12,561 million

Listed market
Code

1st Section of Tokyo Stock Exchange, Fukuoka Stock
Exchange 1959

Head office

1-23-35 Nanokawa, Minamiku, Fukuoka city

Tokyo head officeSunshine 60 3-1-1 Higashi-Ikebukuro, Toshima-ku, Tokyo

Bases

Head office, Tokyo head office, 10 branches in Japan, 120
sales offices, / 5 overseas subsidiaries

Approval for construction

Approved by Minister of Land, Infrastructure, Transport andTourismSp.
( 24)No. 1659

Number of employees

Consolidated: 9,843 personsMarch(
31, 2018)
39

All Rights Reserved. Copyright KYUDENKO CORPORATION

39