Kraftia Corporation · TSE:1959
Kraftia — Kyudenko — Q2 FY2022 Earnings Presentation
44 slides from Kraftia's earnings presentation, Nov 11, 2021
Slide 1: FY ending March 2022 2nd Quarter Results briefing
1st section of Tokyo stock exchange : 1959 KYUDENKO CORPORATION FY ending March 2022 2nd Quarter Results briefing Nov. 11th ,2021 All Rights Reserved. Copyright KYUDENKO CORPORATION 0
Slide 2: Table of contents
Table of contents Overview of business results 2 Plan for fiscal year 20 Highlights 3 Key measures for the second year (FY2021) 21 P/L 4 Plan for fiscal year 22 Factors of change in OP 5･6 Orders/sales by department 23 Sales, Orders and Works on hand Trend of dividends 24 1. Orders received/sales by
Slide 3: Overview of business results
Overview of business results All Rights Reserved. Copyright KYUDENKO CORPORATION 2
Slide 4: Highlights
High lights Sales ¥158,194 million 2nd-on-2nd 87.8% Operating profit ¥11,658 million 2nd-on-2nd 103.7% Orders ¥180,271 million 2nd-on-2nd 107.2% All Rights Reserved. Copyright KYUDENKO CORPORATION 3
Slide 5: Outline of P/L March 2022, 2nd quarter
Outline of P/L March 2022, 2nd quarter (Million yen) March 2021, March 2022, 2Q Increase 2Q Result Result 2nd-on-2nd /decrease Sales 180,101 158,194 ▲21,906 87.8% (100.0%) (100.0%) Gross profit 23,369 23,546 ＋177 100.8％ (13.0%) (14.9%) Operating profit 11,244 11,658 ＋413 103.7％ (6.2%) (7.4%) Ordinar
Slide 6: Factors of change in OP
Factors of change in OP 15 （Billion Yen） :Increase :Decrease Ｄ Improvement in Profit margin A ▲0.4 Increase in fixed costs included in construction costs Ｅ ▲0.2 Power Ｆ ▲0.7 ＋0.2 distribution line work Other business B ＋3.9 10 11.2 Decrease in SG&A ▲2.4 expenses 11.6 Operating profit in March, 2021
Slide 7: Breakdown of construction sales and factor of gross profit ratio
Breakdown of construction sales and Factor of gross profit ratio Sep.2021 (Kyudenko individual : excluding power distribution line work) Average profit ratio 27.0 25.7 24.7 25.5 25.8 26.0 23.7 22.5 200,000 18.7 18.8 18.1 Construction sales 17.5 (Million yen) 16.3 15.8 150,000 Total 142,645 14.8 Tota
Slide 8: Order received / Sales by department
Order received / Sales by department Sep. 2021 (Million Yen) (Million Yen) Sales of each department Orders of each department ■2019.9 ■2019.9 120,000 120,000 ■2020.9 ■2020.9 ■2021.9 ■2021.9 86,194 84,581 73,196 73,260 70,509 64,885 66,052 62,512 60,903 55,865 58,414 48,972 30,181 23,649 26,353 20,14
Slide 9: Order received / Sales by customer
Order received / Sales by customer Sep. 2021 (Million Yen) (Million Yen) Sales of each customer Orders of each customer ■2019.9 ■2019.9 180,000 180,000 ■2020.9 ■2020.9 164,305 ■2021.9 ■2021.9 147,952 145,917 141,822 130,202 123,725 22,247 24,038 23,352 21,009 22,761 21,806 16,642 15,150 12,797 5,742
Slide 10: Order received / Sales by region
Order received / Sales by region Sep. 2021 (Electrical & HVAC work excluding Solar plant construction work) (Million yen) (Million yen) Sales of each region Orders of each region ■2019.9 ■2020.9 ■2021.9 ■2019.9 ■2020.9 ■2021.9 130,000 130,000 103,417 105,047 87,825 86,558 78,043 77,512 39,788 33,449
Slide 11: Order received / Sales by region (solar plant construction)
Order received / Sales by region Sep. 2021 (Solar plant construction work) (Million yen) (Million yen) Sales of each region Orders of each region ■2019.9 ■2020.9 ■2021.9 ■2019.9 ■2020.9 ■2021.9 24,211 14,028 11,434 10,401 9,850 6,770 7,204 5,752 6,099 3,519 4,818 2,000 1,592 1,596 141 451 889 446 0
Slide 12: Situation of works on hand
Situation of works on hand Sep. 2021 (Million yen) New orders in FY ended Sep. 2021 Order stock of each department ■2018.9 ■2019.9 ■2020.9 Image 197,976 170,000 166,209 142,377 130,246 127,513 131,025 125,934 115,814 83,725 Image 1,798 1,859 1,751 0 Power Electrical work HVAC work Solar plant distri
Slide 13: Actual results of works
Actual results of works Sep. 2021 Image All Rights Reserved. Copyright KYUDENKO CORPORATION 12
Slide 14: Outline of balance sheet
Outline of balance sheet (Million Yen, composition ratio) End of Mar. End of Sep. Increase Main factors behind 2021 2021 /decrease increase/decrease 212,574 183,413 Trade notes and accounts receivable Current assets ▲29,160 ▲38,139 (58.0%) (53.7%) 153,957 158,008 Goodwill ＋2,037 Fixed assets 4,050 A
Slide 15: Outline of C/F
Outline of C/F (Million Yen) Details of statement to Sep. 2020 Sep. 2021 Sep. 2021 Profit before income taxes ＋14,248 Decrease in notes and accounts receivable on completed construction contracts Cash flow from operating activities 12,096 9,510 +39,232 Decrease in notes and accounts payable on const
Slide 16: Capital Investment
Capital Investment End of Mar. 2021 End of Sep. 2021 Capital investment 3.6 billion yen 1.8 billion yen 3.3 billion yen 1.7 billion yen Replacement of branches , Replacement of branches and business offices and sanatorium business offices of Kyudenko of Kyudenko Facility work Machinery and equipment
Slide 17: Investment in Power Operations (Solar Power Plants)
Investment in Power Operations (Solar Power Plants) Mega solar power plant Miyagi Fukushima Ishikawa 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 N
Slide 18: Investment in Power Operations (Solar Power Plants)
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 other (acquire investment securities and record an amount equal to the equity to non- operations sales) operating revenues) Depre
Slide 19: Investment in Power Operations (Wind Power Plants)
Investment in Power Operations (Wind Power Plants) 風力発電所 Deals operated by group (make capital investment and record the entire operation to other Fukui Miyagi operations sales) Depreciated at the Mainly declining balance method Fukushima Generation capacity Generation capacity Number of (the entire
Slide 20: Investment in Power Operations
Investment in Power Operations Mar.2022 2nd quarter end Deals operated by group Deals through investment in equity ■Solar Power Plants ■Wind Power Plants (Million yen) (Non-operating income) ■ Operating profit ■Solar Power Plants ■Wind Power Plants 1,119 1,097 1,087 (Million yen) 971 906 705 Total 2
Slide 21: Plan for fiscal year
Plan for fiscal year All Rights Reserved. Copyright KYUDENKO CORPORATION 20
Slide 22: Key measures for the second year (FY2021)
Key measures for the second year (FY2021) Matters to be focused on[Excerpt] Theme for FY2021 Strengthen and expand the order base •Secure orders and construction of large-scale projects 『Application to environmental in Japan changes and realization of recovery』 •Expansion of small and medium-sized p
Slide 23: Plan for March 2022
Plan for March 2022 (Million yen) March 2021 Plan for March 2022 Result March 2022 Year-on-Year 2Q Result Progress 391,901 410,000 104.6% 158,194 38.6% Sales (100.0%) (100.0%) (100.0%) 56,631 60,000 105.9% 23,546 39.2% Gross profit (14.5%) (14.6%) (14.9%) 32,998 35,000 106.1% 11,658 33.3% Operating
Slide 24: Orders & Sales plan by department
Orders & Sales plan by department (Million yen) (Million yen) Sales of each department Orders of each department ■2020.3 ■2021.3 ■2022.3（plan） ■2020.3 ■2021.3 ■2022.3（plan） 240,000 240,000 180,000 176,545 165,000 166,344 156,104 153,773 134,955 132,000 142,575 126,801 137,000 123,199 118,699 59,306
Slide 25: Trend of dividends
Trend of dividends For the fiscal year ending March 31, 2022, we plan to pay an annual dividend of 100 yen per share. 130 Dividend policy With 120 regard to distribution of profits, we seek to keep appropriate financial strength and appropriately return profits to shareholders with strengthening man
Slide 26: Mid-term management plan
Mid-term management plan (Published on April 28,2020.) All Rights Reserved. Copyright KYUDENKO CORPORATION 25
Slide 27: New mid-term management plan (2020-2024)
New mid-term management plan(2020～2024） Main theme Establish a management foundation for sustainable growth ～Realization of the three reforms～ Numerical target Final year（Mar.2024） （Breakdown of construction sales） Power distribution line work 50 billion yen Sales 500 billion yen Electrical･HVAC wor
Slide 28: Road map of sales plan
Road map of sales plan Goals for the (Billion yen) final year 500 429 81.0 410 Solar plant 392 construction(17.0） Renewable energy business Solar plant 67.8 construction (59.3） 61.5 Solar plant construction (54.5） Electrical 191.0 construction 149.1 157.7 HVAC 143.0 129.9 116.0 Power distribution li
Slide 29: Development of new business areas: Green Innovation Business Unit
Development of new business areas Green Innovation Business Unit Strategy1 Strengthen energy services Strategy2 Deployment for PPA solar ●In addition to urban redevelopment projects, the company ●Proposals for large private sector electricity consumers will strengthen its proposals for hospitals and
Slide 30: M&A and capital alliances
M&A and capital alliances CENTRAL GENERAL CHUORIKA KOUGYO Co.,Ltd. JEPLAN,INC. DEVELOPMENT CO.,LTD. Company Profile Company Profile Company Profile ・Location: Idabashi, Chiyoda-ku, Tokyo ・Location:Kawasaki-City,Kanagawa ・Location: Sugamo, Toshima-ku, Tokyo ・Business activities: Real estate sales ・Bu
Slide 31: Promoting Diversity
Promoting Diversity Basic Policy on Diversity Promotion Based on our Corporate Philosophy and Charter of Corporate Behavior, we believe that our greatest management resource is our human resources. By respecting and utilizing diversity as a strength of our organization, we aim to create new value an
Slide 32: Appendix
Appendix All Rights Reserved. Copyright KYUDENKO CORPORATION 31
Slide 33: Corporate profile
Corporate profile Company name Kyudenko Corporation Established December 1, 1944 Capital ￥12,561 million Listed market 1st Section of Tokyo Stock Exchange, Fukuoka Stock Exchange Code 1959 Head office 1-23-35 Nanokawa, Minamiku, Fukuoka city Tokyo head office Sunshine 60 3-1-1 Higashi-Ikebukuro, Tos
Slide 34: Analysis of works on hand
Analysis of works on hand （Kyudenko individual : excluding power distribution work） Third quarter opening construction works on hand by delivery schedule timing Works on hand （Billion yen） 500.0 Total 402.5 Total 383.4.0 400.0 Total 359.9 Total 318.0 Total 316.8 Deliver on after next FY 132.4 235.4
Slide 35: Orders for small and medium-sized projects
Orders for small and medium-sized projects (Kyudenko individual : excluding power distribution work） Orders for small and medium-sized projects with short construction periods and relatively high profit margins (Million yen) ■2017.9 ■2018.9 ■2019.9 ■2020.9 ■2021.9 100～300 million yen Under 100 milli
Slide 36: Sales and gross profit (quarterly accounting period)
Sales and gross profit (quarterly accounting period) (Sales , gross profit：million yen) (Gross profit ratio：％) 200,000 20.0 Sales Gross profit Gross profit ratio Full-year results Full-year results Full-year results Full-year results Full-year results 2Ｑ results Sales 341,771 360,872 408,143 428,939
Slide 37: Breakdown of construction sales and average profit margin
Breakdown of construction sales and average profit margin (by quarterly accounting period) (Kyudenko individual : excluding power distribution line work) Average profit ratio 150,000 30.4 27.2 26.4 24.4 Construction sales (Million yen) 100,000 18.6 17.8 Total 65,555 Not delivered items Total 50,451
Slide 38: Actual results of recruitment and workforce planning
Actual results of recruitment of human resources (Kyudenko individual) and workforce planning ≪ Actual results of periodic recruitment of engineers and ≪ Comparison in actual results of recruitment skilled persons≫ for April 2021 with other companies≫ 2007～ 2015 2016 2017 2018 2019 2020 2021 Large e
Slide 39: Details of diverse business models (facility work)
Details of diverse business models (facility work) business Ⓐ Proposal and original model contract type(Local based） Ⓑ Sub-contract type Ⓒ Capital participation type item ・Capital participation in a project ・Mainly small- and med- of collaboration with different ・Large sized deals industries, and re
Slide 40: Front-loading initiatives
Front-loading initiatives Benefits of being involved from the design stage ・[Design Phase] Design changes can be made from the initial design stage (Effective suggestions and cost savings can be anticipated.) ・[Contract Stage] Orders can be received with cost savings factored in ・[Construction Phase
Slide 41: Specific measures to improve the profit margin (excerpt)
Specific measures to improve the profit margin (excerpt) Factor Measures ・Forecasting the peak of busyness in the whole construction A. Forecasting the busyness period, make an input plan for workers early and start the peak of construction arrangement. Review the plan in a timely manner and make ad
Slide 42: Fukuoka Waterfront Next, Tenjin Big Bang, Hakata Connected
【Positional relationship】 Fukuoka Waterfront Next, Tenjin Big Bang, Hakata Connected Relaxation of height restriction 380,000 ㎡ in the waterfront area (70m→100m) Sanyo Shinkansen line 193,000 ㎡ in Tenjin area (67m→115m at maximum) Waterfront area Request for relaxation of height restriction Hakata S
Slide 43: Project contents: Fukuoka redevelopment projects
【Project contents】 Fukuoka Waterfront Next, Tenjin Big Bang, Hakata Connected Project Purpose Period and scale ・Through 2026 ・By promoting the ・About 193,000㎡ of about redevelopment of the Tenjin 500ｍ in radius from Tenjin intersection area, which is the center of ①Tenjin Big Bang ・Total floor area
Slide 44: Post-2020 Prediction about industry
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 co