Securities code：1959

FY ended March 2019, Third quarter end

Outline of balance sheet(Million yen)

End ofMar. 2017

End ofMar. 2018

End of Dec.
2018

158,172

178,884

158,298(52.6%)(55.1%)(51.3%)

142,306

146,034

150,194(47.4%)(44.9%)(48.7%)

300,478

324,919

308,492(100.0%)(100.0%)(100.0%)Current
liabilities

124,745

130,222106,941(41.5%)(40.1%)(34.6%)

Fixedliabilities

34,23030,55732,874(11.4%)(9.4%)(10.7%)

158,975

160,780

139,815(52.9%)(49.5%)(45.3%)

Total net
assets141,503

164,139

168,677(47.1%)(50.5%)(54.7%)

Total liabilities
and net assets

300,478

324,919

308,492(100.0%)(100.0%)(100.0%)Current
assetsFixed assets
Total assets

Total
liabilities

Increase/decrease▲20,586

4,160

Main factors behind increase/decrease

Trade notes and accounts receivable ▲20,033

Investment securities +4,837▲16,426▲23,2812,316

Trade notes and accounts payable ▲30,422

Long-term debt +5,054▲20,964

4,538

Retained earnings +5,402▲16,4261

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

Factors of change in OP March 2018 Full year
Improvement of
profit ratio
under
Improvement constructionof profit ratio (Decrease ofat orderimprovement
reception
width)（Billion Yen）

36

B
34
Increase fromthe increase ofsales ofelectric &HVAC work

C
Solar plant
construction
work

Renewableenergygeneration
business

Otherbusinesses

35

Operatingprofit in March,
2018

32

A

31
Operatingin March,
30 profit2017

D
Increase frompower
distribution
line work

28

Increase inindirect costs
including sales
administrative
expenses26
3

Outline of P/L March 2019, 3rd quarter end(Million yen)March 2018,

March 2019,

3Qend Result

3Qend Result

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

230,277

252,083(100.0%)(100.0%)Gross profit

34,94034,879(15.2%)(13.8%)

Operating profit

18,578

16,947(8.1%)(6.7%)

Ordinary profit

20,82019,282(9.0%)(7.6%)Net profit

13,597

12,501(5.9%)(5.0%)¥192.05¥175.73

Sales

Net profit per share

Rate ofchange21,805

9.5%

△60

△0.2%

△1,630△8.8%△1,537△7.4%△1,095

△8.1%

-

4

Factors change in OP March 2019, 3nd quarter end
20（Billion Yen）

Refer
P39

19

18

19

Bonus
increase

Operatingprofit in March,
2018
3Qend

A

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

B
17

Sales
Depression of
decreased in gross profit
electrical &ratio in
HVAC & solar electrical &plant
HVAC & solar
construction
plant
construction

Impact of
newly
consolidated
subsidiaries

C

E
D
Power
distribution
line work

16

F

Power
generation
businessG

Other business

H

17
Operatingprofit in March,
2019
3Qend

15
5

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

Sales of construction
work

Increase of
Bonus

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

A

B

C

8,074

Sales of otherbusiness

333
8,407

Sales
Profit of construction
work

△776

△214

Severance benefit UP in
Kyudenko +180 etc.

△776

△214

134

427

△910

△641

(11.9%)

doubtful accounts +200

1,010

Severance benefit UP in（Including depreciation of
goodwill 47）

Kyudenko +29

Operating profit(10.5%)

996

Salary +170
Provision of allowance for

SG&A

848

148

Profit of other business

Gross profit

Impact of newly
consolidated
subsidiaries

etc.

△14
(△0.2%)

6

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

Construction sales（Million yen）
200,000

Average profit ratio of delivered items

24.9

Composition of construction sales

23.5

Delivered

52%

47%

53%

2018’
12

49%

51%

Sales fromdelivered items

Not delivered

48%

2017’
12

Sales fromNot delivered items

2016’
12

Average profit ratio of
Not delivered items

22.1

16.9

18.4

18.0

Project Not delivered（Percentage of completion method）

100,000

Project delivered（Percentage-of-completion method）

Project delivered（Completed-contract method）
0

2016’122017’122018’127

Order received / Sales by department
March 2018 Full year

(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

8Order received / Sales by department Dec. 2018
The increase in parent company's and newly consolidated subsidiaries sales of HVAC
resulted in a increase as a whole. Orders of HVAC increased steadily.
(Million Yen)

Sales of each department■2016.12■2017.12

Impact of newly
consolidated subsidiaries■2018.12

Electrical 629

150,000(Million Yen)

Orders of each department■2017.12

Impact of newly
consolidated subsidiaries■2018.12

Electrical 911■2016.12

148,092

150,000

HVAC 7,096
123,269
117,818
106,061

HVAC 7,444

96,01994,536

90,66983,394

77,84277,851

64,231
59,51635,48431,56527,834

34,58533,81433,586

035,16442,51538,57334,55334,076

24,8360

Power
distribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

Power
distribution
line work

Electricalwork

HVAC work

Solar plant
constructionwork

9Order received / Sales by customer
March 2018 Full year

(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

48,65236,82547,881
47,62534,72531,04849,13647,51447,981

30,51525,17026,1260

0

Kyushu ElectricPower Co,

Govermment/Public

Privatecompanies

Kyushu ElectricPower Co,

Govermment/Public

Privatecompanies

10Order received / Sales by customer Dec. 2018
Public increased, and Keeping high level.
(Million Yen)

Sales of each customer(Million Yen)

Orders of each customer■2016.12■2016.12

250,000

250,000■2017.12■2017.12■2018.12■2018.12

231,345
230,389
223,899

187,007
167,194
161,806

34,733 33,945
33,74536,19935,60934,932

19,25016,44018,28831,00825,84624,2500

0

Kyushu ElectricPower Co,

Govermment/Public

Privatecompanies

Kyushu ElectricPower Co,

Govermment/Public

Privatecompanies

11Order received / Sales by region March 2018 Full year
(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

Overseas12Order received / Sales by region Dec. 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■2016.12 ■2017.12 ■2018.12(Million yen)Orders of each region■2016.12 ■2017.12 ■2018.12

180,000

180,000

163,872 167,243
149,775
130,181
106,386

102,759

51,49247,39040,87730,45028,836
24,41913,824
13,733
9,720

20,10013,00010,415 3,443
2,732 2,813

3,037
1,934
858

0

0

KyushuTokyo Nagoya
Area

Osaka Area

Overseas

KyushuTokyo Nagoya
Area

Osaka Area

Overseas13Order received / Sales by region March 2018 Full year
(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

8,630
7,647
2,663

0

13,611
9,874

7,057
4,891

4,743

0

KyushuTokyo Area

Osaka Area

KyushuTokyo Area

Osaka Area

14

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

Sales of each region■2016.12 ■2017.12 ■2018.12(Million yen)Orders of each region■2016.12 ■2017.12 ■2018.12

50,00050,00037,32432,91822,192
17,684

16,60813,42912,1408,080
7,778 6,735
6,324

7,049
5,048

4,950

605

1,594

240
102

0

0

KyushuTokyo Nagoya
Area

Osaka Area

KyushuTokyo Nagoya
Area

Osaka Area

15

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 plan16

Situation of works on hand Dec. 2018
Order stock increase due to steady order.
Solar construction, Tokyo area and Kyushu area.
(Million yen)Order stock of each department■2016.12 ■2017.12 ■2018.12
180,000

Image

154,318
148,608
147,429
125,743
109,424
107,358

90,72780,062
72,639

1,833
1,707
1,379
0

Power
distribution
line work

Electricalwork

HVAC work

Solar plant
construction
work

17

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

3Qend result

106.7%

252,083111.2%

34,879109.4%

16,947109.8%

19,282110.7%

12,501¥393.57(100.0%)(13.8%)(6.7%)(7.6%)(5.0%)

Progress

65.5%
55.4%
44.6%
47.0%
44.6%

¥175.7390円¥100Interim ¥40

Interim ¥50

18

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

Dec.
2016

Dec.
2017

Dec.
2018

Works on hand（Billion yen）

（Billion yen）

400.0

Increase/
Decrease

353
350.0

330

Deliver on after
next FY

291
128

170

142

300.0

△ 28
250.0

Deliver on next
FY

200.0

111

107

155

+ 48
×1.4

150.0

100.0

Deliver onquarter

52

53

56

+3

50.0

4

th

0.0

Dec. 2016

Dec 2017

Dec 2018

19

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 third quarter end.

(Million yen)

73,480■2016.12 ■2017.12 ■2018.12

36,42173,69573,561

38,562
33,634100～300 million yen

Under 100 million yen
20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

21

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

42

345MW

109MW

Under
construction

1

1MW

1MW

Under
construction

8

301MW

83MW

Plan

-

-

-

Plan

1

50MW

20MW

Total

50

93MW

88MW

Total

51

696MW

212MW

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 implemented by KEP on Oct , Nov and Jan .（Total 9 days）
Impacts

Instruction to stop a total of 122 power station 202MW(Ownership percentage) out of 84 power
station 130MW in a whole

Loss of profit might be 31 million yen.(assumption)※Projects in above table are old regulation (suppression is up to 30 days rule).
Business plans with 8% suppression instructions incorporated

22

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

23

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
24

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 success26

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 ％

27

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）

28

Breakdown of sales plan （March 2020）

Total sales

400 Billion yen

Each business lines

By region (Electrical and HVAC)

Solar plant construction

50 Billion yen

Kyushu176 Billion yen

Electrical and HVAC

289 Billion yen

Tokyo

73 Billion yen

Power distribution line

47 Billion yen

Kansai/Okinawa

23 Billion yen

Others

14 Billion yen

Over seas

17 Billion yen

Renewal &Renovation Services
which is inclued inabove figures

130 Billion yen
29

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

30

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

Training in wiringAppearance of Kyudenko Academy

Place for psychological training “Hogakuan”

31

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

32
33

32

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

50,000002013.32014.32015.32016.32017.32018.32019.32020.32021.333

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

度

20
200

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

0

年1960

30
300

00

1970

1980

1990

2000

2010

2020

2030

2040

2050

34

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 Line35

HAKATA CONNECTED
We will further connect the vigor and bustle of Hakata Station
to the surrounding area
『HAKATA CONNECTED』Starting！！
１．Overview

・Hakata Station is expected to develop further as a gateway
to the land of Kyushu.
・Combined with expanding the traffic infrastructure, we willrebuild advanced buildings that are highly earthquake
resistant by deregulating the volumetric ratio and otherfactors, while also seeking to improve urban functions.
2．Target area
・About 500 meters from Hakata station, about 80 ha
3．Guidance measures

・Fukuoka city inner city volumetric rate special exemption
system etc.

36

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 existence37

Working Style Reform
Securing personnel and the working style reforms are the source of competitivenessand differentiation. ⇒ Priority management issues and strategies.
Enhanced employee benefits corresponding to performance gains

Shorter working hours through improved productivity

Increase in retirement allowances

Thorough stocktaking of operations

Higher bonuses

Promotion of IT & Utilization of AI

Revised starting pay

Utilization of administrative staff

Wage increase for union members

Multiple career paths

Revision to the housing allowance system

Encouraging employees to take paid holidays
Working Style Revision Model Office
3Ｄ CAD

Promotion of IT & Utilization of AI
3Ｄ CAD
3Ｄ measuring device
Laser marking device
Software picking up unit price for estimate
Monitoring solar panels by drone

Construction support using tablet terminal
38