1st section of Tokyo stock exchange : 1959

KYUDENKO CORPOREATIONFY ending March 2018
Results briefing
May 11th ,2018

All Rights Reserved. Copyright KYUDENKO CORPORATION

0Table of contents
Overview of business results

2

Plan for fiscal year

18

Highlights

3

Plan for fiscal year

19

P/L

4

Orders/sales by department

20

Factors of change in OP

5Power distribution line work

21

Trend of dividends

22

Mid-term management plan・growth strategy

23

Numerical targets

24

Road map of sales plan

25

Breakdown of sales plan

26

Axes of the growth strategy and key measures

27

Sales, Orders and Works on hand
1. Orders received/sales by department

6

2. Orders received/sales by customer

7

3. Orders received/sales by region

8・9

4. Year-end amount of works on hand

10

Actual results of works

11

B/S

12

C/F

13

Capital expenditure

14Power generation business

All Rights Reserved. Copyright KYUDENKO CORPORATION

Differentiation strategy of Kyudenko

28～33

Post-2020 Prediction about industry

34・35

15～17

1

Overview of business results

All Rights Reserved. Copyright KYUDENKO CORPORATION

2High lights
OrdersElectrical, HVAC, Solar plant construction each was steady.
For last year, there was reaction decrease of the large¥384,757million wind-power plant. We piled up items in Kyushu andYear-on-year 101.8％

metropolitan area and exceeded last year results.

Sales
Electrical and HVAC greatly increased. Solar plant construction decreased.
increase backed by the increase in orders and¥360,872million Steadyworks on hand.

Year-on-year 105.6％

Operating profit
By sales increase in electrical & HVAC and the improvement of the gross profit ratio,
it absorbed sales decrease in solar plant construction and the increase in staff.
profit ratio was improved by the pursuit of the¥34,726million Gross
minimum cost formulation.

Year-on-year 113.0％
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3

Outline of P/LMarch 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¥327.22

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Year-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%¥345.664

Factors of change in OP

March 2018

・ Labor costs increased due to an increase in the number of employees,

enhancement of remuneration etc.
In addition to increased selling and general administrative expenses,
indirect construction costs also increased.
・ The increase in labor costs in SGA and indirect construction costs
due to the increase in new employees gradually declined
as new recruits were assigned to construction projects. Contributing to increase in sales amount.
・ Sales of electrical and HVAC work greatly increased.

A profit rate was improved by an increased income effect.
・ We have been pursued to reduce the direct cost in every construction process,and we realized the improvement of the profit rate at the order reception
by utilizing the result in the next estimate.
・ In the solar plant construction, although the profit margin improved, the sales decreased.
There was no impact on operating profit

All Rights Reserved. Copyright KYUDENKO CORPORATION

5

Order received / Sales by department

March 2018

Sales of electrical work greatly increased. Sales of HVAC steady increased and orders greatly increased. Orders ofsolar plant construction decreased but exceeded the assumption by 10 billion yen.
(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

96,384

94,13594,001
74,90547,41046,633
46,96349,44448,065 45,157

0

Power
Electrical work HVAC work
distribution
line work

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Solar plant
construction
work

47,79347,00546,53785,79560,901
50,7640

PowerElectrical work HVAC work
distribution
line work

Solar plant
constructionwork

6Order received / Sales by customer March 2018
It was steady, and private sector increased.
(Million yen)

Sales of each customer■2016.3 ■2017.3 ■2018.3■2016.3 ■2017.3

350,000(Million yen)Orders of each customer
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,

Govermment/Public

Privatecompanies

Kyushu ElectricPower Co,

Govermment/Public

Privatecompanies

7
All Rights Reserved. Copyright KYUDENKO CORPORATION

7

Order received / Sales by region March 2018
(Electrical & HVAC work excluding Solar plant construction work)
Although there was reaction decrease of the supersized items such as wind-power plant and Fukuoka airport oflast year, the orders received in Kyushu region keeps sideways movement. Tokyo area grew up backed by business
reinforcement.
(Million yen)

Sales of each region■2016.3 ■2017.3 ■2018.3■2016.3 ■2017.3 ■2018.3

220,000

220,000

198,203
168,191(Million yen)Orders of each region

197,665

178,698

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

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Overseas

KyushuTokyo Area

Osaka Area

Overseas8Order received / Sales by region March 2018
(Solar plant construction work)
Sales in the Kyushu area remained flat due to delayed construction of large-scale projects as in the previous year.
Orders exceeded the initial assumption by 10billion yen , but the overall decreased.
(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

35,03926,75827,05923,28415,03810,363

8,630

7,057
4,891

2,663
0

KyushuTokyo Area

13,611
9,874

7,647

9,467

Osaka Area

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4,743

0

KyushuTokyo Area

Osaka Area

9

Year-end amount of works on hand
It was greatly extended with each department by the reinforcement of the management base including theincrease of the construction staff.
The Solar plant construction exceeded 100 billion yen by the prolongation of the construction period with upsizing.
New orders in FY ended March 2018
(Million yen)Order stock of each department■2016.3 ■2017.3 ■2018.3

132,519

140,000

Image

118,676
97,598100,350
94,744

83,286

84,257
63,97561,382

1,121
800 1,184
0PowerElectrical work HVAC work
distribution
line work

All Rights Reserved. Copyright KYUDENKO CORPORATION

Solar plant
construction
work

Ken Corporation Ltd.
（Kasyou）Yamashitacyou Ａ gaiku
Hoteru shinchikukeikaku

10Actual results of works FY March 2018
NIPPON SEINEN-KAN HALL

Saga ouchi solar plant

イメージパース

Kumamoto toshikeikaku sakuramachichiku
dai1syu sigaichi saikaihatsu jigyou

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11

Outline of balance sheet（百万円、下段は構成比）

End of Mar.
2017

End of Mar.
2018

158,172

182,640(52.6%)(56.2%)

142,306

142,513(47.4%)(43.8%)

300,478

325,153(100.0%)(100.0%)124,745

130,226(41.5%)(40.0%)

34,23030,787(11.4%)(9.5%)

158,975

161,014(52.9%)(49.5%)

141,503

164,139(47.1%)(50.5%)

Total liabilities

300,478

325,153

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/decrease
24,468206

Main factors behindincrease/decrease
Trade notes and accounts receivable 21,406

Investment securities 1,777
Differed tax asset ▲967
Goodwill ▲675

24,674
5,481▲3,442

Trade notes and accounts payable 18,102
Short-term debt ▲13,803

Convertible bond ▲1,860
Liability for retirement benefits ▲1,725
Long-term debt ▲723

2,038
22,635

Common stock & capital surplus 1,868
Retained earnings 20,108

24,67412

Outline of C/F(Million Yen)

March

March

2017

2018

Details of statement toMar. 2018
Income before income taxes and minority
interests 37,148

Cash flow from operating activities

14,187

29,903

Increase in trade notes and accounts
receivable ▲17,939
Increase in trade notes and accounts
payable 15,598

Cash flow from investment activities▲17,951▲3,717Purchase of property, plant and equipment▲4,092
Purchase of investment securities ▲3,278
Proceeds from sales of investment
securities 3,140

Free cash flow

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
All Rights Reserved. Copyright KYUDENKO CORPORATION▲3,763

26,185

7,200▲21,783

3,295

4,477

26,73230,02730,02734,505

Net increase (decrease) in short-termborrowings ▲14,872
Cash dividends paid ▲5,635

13

Capital Investment
FY2017 Mar.

Capital investment

7.4 billion yen

4.2 billion yen

3.9 billion yen

1.7 billion yen

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

Replacement of business offices ofKyudenko
EMS demonstration facilities in
Sumba Island

Facility work
Machinery and equipment, etc. forconstructions

Lease contracts on specialized
vehicles for construction

3.4 billion yen
Others

FY2018 Mar.

Solar power plant facilities

Depreciation
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Machinery and equipment, etc. forconstructions
Lease contracts on specialized
vehicles for construction

2.4 billion yen
Solar power plant facilities(3.2 billion yen)

(1.7 billion yen)

5.4 billion yen

5.5 billion yen
14

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

Aichi- In Operation- Under construction- Preparing for construction

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Amami

Nara Mie15

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

Depreciated at thestraight line method

Numberof power
plantsGeneration
capacity(the entire
operation)

Generation
capacity(that equal tothe equity)

In operation

47

85MW

82MW

Under
construction

3

8MW

6MW

Plan

-

-

Total

50

93MW

2.0 to 2.4 billion yen at its maximum
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Numberof power
plantsGeneration
capacity(the entire
operation)

Generation
capacity(that equal tothe equity)

In operation

39

306MW

95MW

Under
construction

8

242MW

61MW

-

Plan

4

144MW

55MW

88MW

Total

51

692MW

211MW

1.8 to 2.0 billion yen at its maximum16

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
17

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17

Plan for fiscal year

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18

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

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

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19

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

20

Power distribution work

Present condition

Sendai nuclear power plant restart.

Commercial operation of genkai nuclear
power plant will start in near future.

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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21

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

22

Mid-term management plan
growth strategy

All Rights Reserved. Copyright KYUDENKO CORPORATION

23

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

24

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）

All Rights Reserved. Copyright KYUDENKO CORPORATION

25

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

All Rights Reserved. Copyright KYUDENKO CORPORATION

26

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

All Rights Reserved. Copyright KYUDENKO CORPORATION

27

<Differentiation Strategy of Kyudenko (1)>Come to the top with the use of technology ofintegrated facility engineering service

6

Ratio

：

4

Sales in FY2017

15 billion yen

10 billion yen

Growth from
FY2016

Up 11％

Up 7％

Start of operation

1944

1964

Place at the industry
in terms of sales

Top 3

Top 7

Electrical work

HVAC work

excluding solar plant construction

One-stop construction of all facility works（Customers are not required to make arrangements with several
companies. We conduct construction and renovation of energy
facilities, which mainly consist of facilities, as an originalcontractor in place of a general constructor ”builder”.）

AEON Mall Makuhari New City

Mix know-how on electrical work with that on
HVAC（total solution realizing energy saving）

Cut costs through process management of theentire facility（wiring and piping possible to cut construction time and use thespace at maximum）
All Rights Reserved. Copyright KYUDENKO CORPORATION

Provided by AEON MALL Co., Ltd28
28

<Differentiation Strategy of Kyudenko (2)>Firm base in Kyushu/Okinawa

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Deploy engineers and skilled workers ofelectrical facilities and air conditioning andsanitation facilities
Conduct maintenance and sales of solution

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111 business bases
across Kyushu andOkinawa

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A relied-on company immediately going to thesite and securing a lifeline even in times ofdisaster
Aim at being the Kyudenko continuously
selected by customers through local-based
business and social contribution activities

●
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■●
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All Rights Reserved. Copyright KYUDENKO CORPORATION

29

<Differentiation Strategy of Kyudenko (3)>Expansion of business area and acceptance of brand≪ Strengthening of organizations in areas excluding Kyushu≫
Promote expansion of business area andstrengthening
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

Network of headquarters, branches andregional offices in areas excluding Kyushu

Reorganized Tokyo organization and established Tokyo
Headquarters
Reorganized Osaka branch to Kansai branch to expand
its business territory

Ⓐ

2008

Ⓑ

2012

Ⓒ

2012

Established Tohoku regional office

Ⓓ

2014

Reorganized Yokohama business office to Yokohama
regional office

Ⓔ

2015

Established Nagoya regional office

Ⓕ

2017

Reorganized Saitama business office to Saitama branch≪ New participant companies of Kyudenko group≫Year ofparticipation■ : Headquarters■ : Branch and regional office

①③

⑥②
⑤

Ⓑ

Ⓔ

All Rights Reserved. Copyright KYUDENKO CORPORATION

Location

Sales for FY2017

Employees①

2014

Koderadengyo

Osaka

1,566 million yen

54

②

2012

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

Saga

293 million yen

29

⑦

2018

Sanyudensetu

Fukushima

1,061 million yen

41

⑧

2018

Ergotech

Kanagawa

7,672 million yen

143

⑨

2018

Seiwakougyou

Ibaragi

1,429 million yen

33

Ⓒ
Ⓕ⑦
Ⓐ ⑨
Ⓓ⑧④

Name ofCompany30

<Differentiation Strategy of Kyudenko (4)>Actual results of recruitment of human resources (single Kyudenko) and workforce planning
We have steadily conducted recruitment even during hard times with the philosophy “Human resources are the most significant management resources”.
Strengthening the pipeline with industrial high schools and universities now becomes a large differentiation factor during difficulty in recruitment.
We internally train up construction managers as well as skilled workers and master workmen in preparation for a future shortage of skilled persons.

≪ 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

≪ Planned year-end workforce until FY2020 March≫≪ 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

330～34060～100230～290Highschoolgraduates

272

Around 200

Around 10

Around 10

Universitygraduates

140

130～14060～90

230～280

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

31
All Rights Reserved. Copyright KYUDENKO CORPORATION

31

<Differentiation Strategy of Kyudenko (5)>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 from partners.
（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)Line chart
Number of deals of solar power facility construction works worth 100 million yen or more by deal

100,000
80,00060,00040,00020,000
0

Actual and expected results of orders received

80,000

Actual and expected results of sales

2013.32014.32015.32016.32017.32018.3The 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.

2019.32020.32021.3

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

60,000

150
100
50
0
150
100

40,00050

20,0000
150,000

2013.32014.32015.32016.32017.32018.3

Actual and expected results of works in hand

100,000

2019.32020.32021.30Larger deals will reduce the workforce 100
necessary in amount.

50
50,00002013.32014.32015.3

All Rights Reserved. Copyright KYUDENKO CORPORATION

2016.32017.32018.32019.32020.32021.3032 32

<Differentiation Strategy of Kyudenko (6)>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

All Rights Reserved. Copyright KYUDENKO CORPORATION

and others

Differentiation fromfacility work operators

Credibility from regions
and existence33

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

34
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 minutes
空港まで
to the10分
airportMeiji Street

Tenjin area
Fukuoka City Subway Airport Line
Nishi-Nippon Railroad
Fukuoka(Tenjin)station
All Rights Reserved. Copyright KYUDENKO CORPORATION

5 minutes

Fukuoka City Subway Nanakuma Line

35
35

KYUDENKO GroupAll Rights Reserved. Copyright KYUDENKO CORPORATION

36

Corporate profile
Company name

Kyudenko Corporation

Established

December 1, 1944

Capital￥12,550 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: 9,843 persons (March 31, 2018)37

All Rights Reserved. Copyright KYUDENKO CORPORATION

37

History of our group
Sales
450000400000350000300000250000Million yen

1944
1945
1947
1964
1968
1972
1989
2012
2012
2013
2014
2015

Established in fukuoka.
Tokyo branch established.
Power distribution work contract concluded with Kyushu Electric Power Co., Inc.
Sales of HVAC work started.
Listed on Fukuoka Stock Exchange.
Listed on 2nd Section, Osaka Stock Exchange.
Listed on 1st Section, Tokyo Stock Exchange .
Company name changed to Kyudenko Corporation.
Tohoku branch established.
Started establishing overseas companies in Southeast Asia.
Purchased Asia Projects Engineering Pte. Ltd. in Singapore.
70th anniversary of establishment
Issue of convertible bonds.
Exceeding

Exceeding
300 billion yen

Others
HVAC work

200 billion yen

Solar plant construction work

200000Exceeding
100 billion yen

150000Electrical work

10000050000

Power distribution line work

0
1945

1950

1955

1960

1965

1970

1975

1980

1985

Business year
All Rights Reserved. Copyright KYUDENKO CORPORATION

1990

1995

2000

2005

2010

2015

38

※1994年度より連結38

Business items
KYUDENKO Group
Facility engineering

Other businesses

・Power distribution line construction
・Electrical, Information Communication facilities design and construction
・Heating, Ventilation, Air Conditioning, Water supply, Sewer,
Waste water treatment design and construction
・Plant facility, Renewable energy plant
・Maintenance・Energy saving planning, Energy management service

・Materials, machinery and tools sale・Renewable energy generation
・Real-estate development, management
・Software development
・Environmental inspection
such as the quality of the water, air・Others

Customers
Kyushu Electric Power Company, Incorporated（About 15% of sales）

Other customers（About 85% of sales）

The prediction based on a premise about the future of the present and the prospect is included in this presentation. The realachievements may be changed by the occasional situation and a variety of factors. When there is a change, We are not obligated torevise this material.
In addition, all part of this material belongs to Kyuden Corporation, please do not copy or transfer without prior consent, for any
purpose, regardless of electronic or mechanical method .

All Rights Reserved. Copyright KYUDENKO CORPORATION

39