1st section of Tokyo stock exchange : 1959

KYUDENKO CORPOREATIONFY ending March 2019
Results briefing
May 10 th ,2019

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

27

5~9

Power distribution line work28

Trend of dividends

29

Mid-term management plan・growth strategy

30

Numerical targets

31

Road map of sales plan

32

Breakdown of sales plan

33･34

Factors of change in OP
Sales, Orders and Works on hand
1. Orders received/sales by department10

2. Orders received/sales by customer

11

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

12・13

14

Actual results of works

15

B/S

16

C/F

17

Capital expenditure

18

Power generation business

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19～21

22
23~26

Axes of the growth strategy and key measures

35

Recruit of human resources

36

Details of diverse business models

37

Post-2020 Prediction about industry

38

Kyudenko EMS

39

1

Overview of business results

All Rights Reserved. Copyright KYUDENKO CORPORATION

2High lights
OrdersExceeded 2017’ result by order increased in Tokyo area.

¥405,903million Over 400 billion yen for the first time.
Year-on-year 105.5％

Sales

Steady increase backed by increase of human resource
and in works on hand (¥331billion).

¥408,143million Over 400 billion yen for the first time.
Year-on-year 113.1％

Operating profit

Operating profit increased by increase of sales.

¥36,747million On the other hand, gross profit ratio was decreased.
Year-on-year 105.8％
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3

Outline of P/LMarch 2019
(Million yen)March 2019

March 2018
ResultResult360,872

408,143(100.0%)(100.0%)Gross profit

56,65960,561(15.7%)(14.8%)

Operating profit

34,72636,747(9.6%)(9.0%)

Ordinary profit

37,34239,924(10.3%)(9.8%)

25,296

26,691(7.0%)(6.5%)

Sales

Net profit

Net profit per share¥356.89

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Year-onyear

Plan (2018.4.27)

113.1%

385,000

106.9%

63,000105.8%

38,000106.9%

41,000105.5%

28,000¥375.17(100.0%)(16.4%)(9.9%)(10.6%)(7.3%)

Progress

106.0%

96.1%

96.7%

97.4%

95.3%

¥393.57

4

Factors of change in OP March 2019
Refer
P7･P8

40
（Billion Yen）

Depression ofSalesgross profit
increased inratio inelectrical & electrical &HVAC & solar HVAC & solar
plant
plant
construction construction

Refer
P6

38

▲1.9

＋4.4

36

34.7
34

Operatingprofit inMarch, 2018

Bonus
increase▲1.0

A

Increase ofother fixed
cost
Power
(overhead Impact of distributioncost) in SG&A, newly
line work
Gross Cost consolidated
subsidiaries

▲0.7

B

＋0.2

C

F

Power Other businessgeneration
business
＋0.2

＋0.3

G

H

36.7

Operatingprofit inMarch, 2019

E

＋0.6

D

32
Main factors failed
achieve plan

30

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5

Increase of Fixed cost（Over head cost）
and Impact of newly consolidated subsidiaries
C : Impact of newly consolidated subsidiaries(Million Yen, composition ratio)

A & B : Increase of Fixed costA
Increaseof Bonus

Impact of newly
consolidated
subsidiaries(Million yen)B
Increase of other fixed cost(overhead cost) in SG&A and Gross
Cost

Sales of construction work

Sales of other business

Gross cost

823

215

Severance benefit UP in
Kyudenko +244 etc.

・Salary +245

Sales

SG&A

128

528

in Kyudenko +39

1,233Profit of other business

205

Gross profit

etc.

(△ Operating
profit)

SG&A

951

743

13,484(9.5%)+204
・Severance benefit UP

Fixed cost
total

435

Profit of construction
work

・Provision of allowancefor doubtful accounts

13,049about 1.7 billion yen

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Operating profit

1,438(10.7%)

1,224（Including depreciationof goodwill 62）

214(1.6%)

6

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

Whole construction sales increased 25.2billion yen.
Sales from projects delivered increased 4.4billion yen.
Sales from projects Not delivered increased 20.8billion yen.
Difference of Project profit ratio between delivered items and Not
delivered items is about 5%.

Average profit ratio of delivered items

23.2

22.7
Average profit ratio of
Not delivered items

Sales fromNot delivered items

17.7

22.3

about
18.3

102,046

400,000

5％

18.0
total 305,015

total 279,794

total 262,902

Construction sales（Million yen）

36%

122,858

Sales fromdelivered items

80,498 31%

Project Not delivered（Percentage of completion method）

79,87083,771
Project delivered（Percentage-of-completion method）

300,000

40%
200,000

74,202

69%
102,534
Composition of

construction sales

2017’03
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103,54664%

98,386
Project delivered（Completed-contract method）
2018’03

60% 100,000

02019’03
7

Reasons for decline in profit ratio for each projectand measures (excerpt)(1)
FactorMeasuresA. Forecasting the busyness
peak of construction

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.

・Forecasting the peak of busyness in the whole construction
period, make an input plan for workers early and start thearrangement. Review the plan in a timely manner andmake adjustments throughout the company.

B. Measures for increase of ・Close relationships with construction cooperation companies,
construction cooperation
planned order and allocate appropriate personnel, suppress
labor costs increase.
companies’ labor costs.
C. Establishment of team・Establishment of a team specialized for supporting
supporting construction.
construction by employee technicians.
D. Material ordering linked
to design change and・Technical department check whether each branch andfurther utilization ofaffiliated company uses Q-mast for purchasing materials, in”Q-mast” which affiliatedcooperation with “Q-mast”.
company specialized forpurchasing 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.

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8

Reasons for decline in profit ratio for each projectand measures (excerpt)(2)Factor

３.Others

MeasuresH. Promotion of designated ・Sales department promotes sales in cooperation withorder by customer andtechnical department.
Establishing “Infrastructure business department”
proposal-based order.
・Holding a meeting of branch executives and young
I. Assist of the engineer’s
engineers more than once a month
construction
Share the actual conditions of each construction site, andmanaging skill.
support quickly to sites that need assistance.
・Establishing the reception window for engineer orJ. Establishing the reception
technician required in head office from each branch.
window for engineer or
Head office coordinates proper staffing at company-wide
technician required.
level.
K. Raise bottom of new
・Instill the know-how of KYUDENKO by sending top-classconsolidated subsidiaries
technical employees of KYUDENKO.

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9Order received / Sales by department

March 2019

The increase in parent company's and newly consolidated subsidiaries sales and orders of
HVAC resulted in a increase as a whole. Although Solar plant construction work decreased,
it exceeded about 15 billion yen than expected.
(Million Yen)

Sales of each department■2017.3■2018.3

Impact of newly
consolidated subsidiaries■2019.3

Electrical 857

220,000(Million Yen)

Orders of each department■2018.3

Impact of newly
consolidated subsidiaries■2019.3

Electrical 1,073■2017.3

220,000

HVAC 12,191

165,667
153,447

172,689
HVAC 9,455
167,040
162,646
150,469

137,924
126,573

120,414101,164
96,384

94,13560,90147,70647,41046,63349,444

48,37945,157047,45347,793
46,53750,76445,3320

PowerElectrical work HVAC work
distribution
line work

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Solar plant
construction
work

Power
Electrical work HVAC work
distribution
line work

Solar plant
construction
work

10

Order received / Sales by customer March 2019
Both Private and Public increased, and Keeping high level.
(Million Yen)

Sales of each customer■2017.3■2017.3■2018.3■2018.3

350,000(Million Yen)

Orders of each customer

321,069
311,604

350,000■2019.3

305,300■2019.3

298,116

263,796249,215

48,794
48,65247,88149,13634,72534,23331,04848,65547,981

30,51536,17725,1700

0

Kyushu ElectricPower Co,

Govermment/Public

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Privatecompanies

Kyushu ElectricPower Co,

Govermment/Public

Privatecompanies

11Order received / Sales by region March 2019
(Electrical & HVAC work excluding Solar plant construction work)

Orders in Kyushu and Tokyo region increased. Steadily share up.
(Million yen)

Sales of each region■2017.3 ■2018.3 ■2019.3(Million yen)Orders of each region■2017.3 ■2018.3 ■2019.3

250,000

250,000

218,328
198,203
197,665

202,906
178,698
168,191

68,471
62,97456,89568,09543,862
38,59426,852
21,247

21,567
5,742
20,574
5,247
11,811
2,164

17,275

5,198
4,026 3,963
00KyushuTokyo Nagoya
Area

Osaka Area

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Overseas

KyushuTokyo Nagoya… Osaka Area

Overseas12Order received / Sales by region March 2019
(Solar plant construction work)
Order from huge project in Nagoya Area.
(Million yen)

Sales of each region■2017.3 ■2018.3 ■2019.3(Million yen)Orders of each region■2017.3 ■2018.3 ■2019.3

50,00050,00041,12940,23240,18927,05926,75827,36515,038

13,611

13,3169,467
6,306 7,647

8,630

7,057

4,891

4,743

Tokyo Nagoya
Area

Osaka Area

1,883
0

KyushuTokyo Nagoya
Area

Osaka Area

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4,650

0

Kyushu13

Year-end amount of works on hand
Work on hand of electrical and solar plant construction work decreased due to a decreasein orders and an increase in sales. Work on hand of HVAC work increased due to anincrease in orders.
(Million yen)Order stock of each department

New orders in FY ended March 2019■2017.3 ■2018.3 ■2019.3
170,000

Image

132,519
129,498
121,420

118,676

97,598100,350
97,304
94,744

63,975

1,184

1,121 840

0PowerElectrical work HVAC work
distribution
line work

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Solar plant
construction
work

14

Actual results of works FY March 2019

Image

Image

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15

Outline of balance sheet(Million Yen, composition ratio)

End of Mar.
2018

End of Mar.
2019

178,884

206,268(55.1%)(57.7%)

146,034

151,002(44.9%)(42.3%)

324,919357,271(100.0%)(100.0%)130,222

142,144(40.1%)(39.8%)

30,55732,949(9.4%)(9.2%)

160,780

175,094(49.5%)(49.0%)

164,139

182,176(50.5%)(51.0%)

Total liabilities

324,919357,271

and 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/decrease27,383

4,968

Main factors behindincrease/decrease
Trade notes and accounts receivable ＋23,011

Investment securities +5,146

32,352
11,922

2,392

Electronically recorded obligations ＋8,088

Long-term debt +4,676

14,314
18,037Retained earnings +19,591

32,35216

Outline of C/F(Million Yen)

Mar. 2018

Mar. 2019

Details of statement toMar. 2019
Income before income taxes and minority
interests +39,260

Cash flow from operating activities

30,016

26,054

Increase in trade notes and accounts
receivable ▲23,007
Increase in trade notes and accounts
payable ＋10,751

Cash flow from investment activities▲3,830▲11,298

Free cash flow

26,185

14,755▲21,783▲9,021

4,477

5,687

30,02734,50534,50540,192

Cash 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 ▲9,334

Cash dividends paid ▲7,108

17

Capital Investment
FY2018 Mar.

Capital investment

4.2 billion yen

4.3 billion yen

1.7 billion yen

3.7 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 Mar.

5.5 billion yen

Replacement of branches , businessoffices and sanatorium of
Kyudenko

Machinery and equipment, etc. forconstructions

Lease contracts on specialized
vehicles for construction

0.6 billion yen
Solar power plant facilities

6.0 billion yen
18

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

Ishikawa

Miyagi
Fukushima

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

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19

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

43

368MW

116MW

Under
construction

-

-

-

Under
construction

8

280MW

77MW

Plan

-

-

-

Plan

2

50MW

20MW

Total

49

92MW

87MW

Total

52

698MW

213MW

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 from Oct to Mar .（Total 26 days）
Impacts

Instruction to stop a total of 442 power station 727MW(Ownership percentage) out of 86 power
station 138MW in a whole
Loss of profit might be 108 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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20

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
21

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21

Plan for fiscal year

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22

Plan for March 2020
(Million yen)March 2019
ResultSales

Gross profit

Operating profit

Ordinary profit

Current (quarter) net profit

Current net profit per stock
Dividends

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Plan for March 2020
March 2020

408,143

418,000(100.0%)(100.0%)60,56162,700(14.8%)(15.0%)

36,74738,000(9.0%)(9.1%)

39,92440,700(9.8%)(9.7%)

26,691

27,200(6.5%)(6.5%)

Year-on-Year

102.4%
103.5%
103.4%
101.9%
101.9%¥375.17¥382.31

100円

¥100

Interim ¥50

Interim ¥50

23

Analysis of works on hand
（Kyudenko individual : excluding power distribution work）
Opening amount of construction works on hand by delivery schedule timing and
Gross profit ratio for each year

Works on hand

15.7％（Billion yen）

Total 302.1

15.2％
Total 266.6

81.3
Total 221.6
Deliver on after next FY

Deliver on next FY

14.8％
71.1

77.8
(▲3.5）

15.0％

85.3

59.9

Total 315.0

115.7

99.0
（▲16.7）

66.1
110.2

105.1

138.2
（＋33.1）
1.3 times

FY 2017

FY 2018

FY 2019

Deliver on FY

95.6
FY 2016

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24

【Reference】 Scheduled delivery amount by quarterly
accounting period [Opening time]（Kyudenko individual : excluding power distribution work）
Opening amount of construction works on hand of quarterly accounting period

Scheduled delivery amount
FY2016
total 95.6

FY2017
total 110.2

FY2018
Total 105.1

FY2019
total 138.2（Billion yen）

55.5
48.6
47.7
45.3

31.5

31.2
20.2 20.0
16.4
16.6

25.3
23.0

20.4

17.4

17.0
13.0

First quarter

Second quarter

Third quarter

Fourth quarteraccounting period

accounting period

accounting period

accounting period

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25

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 current year.
(Million yen)■2017.3 ■2018.3 ■2019.3

45,02994,723 93,729

43,92893,20849,223100～300 million yen

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Under 100 million yen

26Orders & Sales plan by department
The orders of the solar plant construction expects gradual decrease.
The sales amount spreads by the abundant amount of works on hand.
(Million yen)

Sales of each department■2018.3 ■2019.3

240,000■2020.3（plan）(Million yen)Orders of each department■2018.3 ■2019.3
240,000■2020.3（plan）

202,500
170,000
165,667
153,447

167,040
162,646
150,469
135,000

135,500
126,573

120,414101,164
47,70647,50046,63350,00048,37945,1570

PowerElectrical work HVAC work
distribution
line work

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Solar plant
construction
work

47,50047,453
46,5370Powerdistribution
line work

50,76445,33240,000Electricalwork

HVAC work

Solar plant
construction
work

27

Power distribution work
Present condition

In addition to the two Sendai nuclear
power plants, the two Genkai nuclear
power plants also restarted in the first halfof 2018.

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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28

Trend of dividends
With regard to dividends for the fiscal year ending March 2020, we plan to
pay an annual dividend of ¥ 100 per share, based on a consolidated payout
ratio target of 25%.

100

100

Mar,2019

Mar,2020

110

special

100

90

90

special

80

10

70

70

10
60

special50

40

Memorial

30

specialspecial
10

20

10

13
3

45
15

25
2
7

0

Mar,2011

Mar,2012

Mar,2013

Mar,2014

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Mar,2015

Mar,2016

Mar,2017

Mar,2018

29

Mid-term management plan
growth strategy

All Rights Reserved. Copyright KYUDENKO CORPORATION

30

Numerical target≪ Main theme ≫Challenge to a Further Growth～To the next growth stage～≪ Numerical target at March 31, 2020≫(Results in March 2019)

S a l e s

400 BillionYen

408 BillionYen

Gross Profit Ratio

Over
％
15

14.8 ％

Operating Profit Ratio

Over
％
9

9.0 ％

R O E

Over
％
14

15.6 ％All Rights Reserved. Copyright KYUDENKO CORPORATION

31

Road map of sales plan
(Billion yen)
400

48

50

166

170

127

136

45
50

Solar plant
construction

48

66
138
Electrical construction

153

127

111

HVAC
80

94

101

47

47

47

48

48

15

13

15

20

15

2016.32017.32018.32019.32020.375

Power distribution line
45
Others0

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

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32

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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33

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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34

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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35

Actual results of recruitment of human resources(Kyudenko individual) and workforce planning≪ Actual results of periodic recruitment of engineers andskilled persons≫
2007～2014

2015

2016

2017

2018

≪ Comparison in actual results of recruitment
for April 2019 with other companies≫

2019
Kyudenko

Large electricalconstruction
companies

Large HVAC
companies

Super general
constructors

Total in all
professions

362

320～33060～90

250～330

Total
engineers andskilledpersons

Around 200

241

262

344

384

342

High
schoolgraduates

Around 150

163

177

248

271

253

High
schoolgraduates

253

Around 190

Around 10

Around 10

University
graduates

Around 50

78

85

96

113

89

University
graduates

109

130～14060～80

250～320≪ 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

2,203

2,228

About +500

HVAC work department

921

990

1,052

1,107

1,160

About +240

Year-end workforce of electricaland HVAC

2,649

2,816

3,142

3,310

3,388

About +740

Power distribution line department

1,869

1,816

1,741

1,669

1,647

About ▲220

Other

1,394

1,408

1,418

1,420

1,433

About +40

Employees of single Kyudenko

5,912

6,040

6,301

6,399

6,468

About +560

Employees of group

8,976

9,287

9,843

9,954

10,000

About +1,000

Total 8,100 employees in technical field of total 9,900.
(Kyudenko )(Subsidiaries)

Number ofsite
technicians

About 2,100+

About 2,000=

About 4,100

Number of
construction
managers

About 3,000+

About 1,000=

About 4,000

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36
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

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 existence37

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
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2000

2010

2020

2030

2040

2050

38
38

“Kyudenko EMS” can distribute renewable energy stably
Energy management system

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

オフグリッド○ 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 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.

○ 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.

化石燃料発電機なし
Constitution of the proof system of SUMBA island modelinternet

Solar energy
plant

光発電

小型風力発電Leadstorage battery(1000kWh)

Cloud serverState-run electric power company’s
large diesel generator
All Rights Reserved. Copyright KYUDENKO CORPORATION

住居

39

＜As regards to scandal of employee concerning Chikujyo town water and waste sewage treatment facility＞

・ Axis of preventive measures

The Group has formed an investigative committee, which includes outside
directors and lawyers, and has thoroughly investigated the causes, such asopportunities and motivations for fraud. The axis of preventive measures basedon this survey is as follows.

１．Implementation of thorough re-education on legal compliance
２．Reform to a clean and healthy corporate culture
３．Improving the ordering scheme for outsourced companies
４．Dissemination of fraudulent support and rejection of cooperation
to outsourcing companies
５． Further strengthen the internal and external reporting systemand promote its use
We will strive to create an advanced corporate culture by establishing asystem that does not allow unlawful deed, can not conduct unlawful deed, or
expose unlawful deed, and strengthens CSR management.
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40

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 andTourism (Sp. 24) No. 1659

Number of employees

Consolidated: 9,954 persons (March 31, 2019)41

All Rights Reserved. Copyright KYUDENKO CORPORATION

41