Kraftia Corporation · TSE:1959
Kraftia — Kyudenko — Q2 FY2025 Earnings Presentation
41 slides from Kraftia's earnings presentation, Nov 15, 2024
Slide 1: FY ending March 2025 2nd Quarter Results briefing
Prime Market of Tokyo stock exchange : 1959 KYUDENKO CORPORATION FY ending March 2025 2nd Quarter Results briefing Nov.15 th ,2024 All Rights Reserved. Copyright KYUDENKO CORPORATION 0
Slide 2: Table of contents
Table of contents Overview of business results 2 Plan for fiscal year 17 Highlights 3 Plan for fiscal year 18・19 P/L 4 Trend of dividends 20 Factors of change in OP 5・6 Ukujima solar power plant 21 Sales, Orders and Works on hand Location of Ukujima 22 1. Orders received/sales by department 7 Schema
Slide 3: Overview of business results
Overview of business results All Rights Reserved. Copyright KYUDENKO CORPORATION 2
Slide 4: Highlights
Highlights Orders ¥227,881 million Year-on-year 93.0% Sales ¥219,303 million Year-on-year 109.3% Operating profit ¥18,254 million Year-on-year 133.3% All Rights Reserved. Copyright KYUDENKO CORPORATION 3
Slide 5: Outline of P/L March 2025, 2nd quarter
Outline of P/L March 2025, 2nd quarter (Million yen) March 2025,2Q March 2024, Percentage Increase 2Q Result Result /decrease increase /decrease Sales 200,617 219,303 ＋18,685 +9.3% (100.0%) (100.0%) Gross profit 26,860 32,651 ＋5,791 +21.6％ (13.4%) (14.9%) Operating profit 13,692 18,254 ＋4,562 +33.3％
Slide 6: Factors of change in OP
Factors of change in OP （billion yen） :Increase 25 :Decrease C D E B Power distribution Other business Increase in SG&A Increase in line work expenses 20 Profit margin +0.5 +0.5 ▲1.2 A Increase in +3.1 sales 15 18.3 +1.7 Operating profit in 13.7 March,2025 2Q end 10 Operating profit in March,2024 2Q
Slide 7: Breakdown of construction sales and average profit Sep.2024
Breakdown of construction sales and average profit Sep.2024 (Kyudenko individual : excluding power distribution line work) Project Not delivered（Percentage of completion method） Project delivered（Percentage-of-completion method） Project delivered（Completed-contract method） 33.2 26.7 27.2 25.8 Averag
Slide 8: Order received / Sales by department Sep. 2024
Order received / Sales by department Sep. 2024 (Million yen) (Million yen) Sales of each department Orders of each department ■2022.9 ■2022.9 ■2023.9 130,028 ■2023.9 ■2024.9 ■2024.9 113,486 99,703 90,540 101,110 94,924 80,185 93,243 76,796 66,584 62,967 56,388 23,761 25,920 21,487 25,078 20,688 18,6
Slide 9: Order received / Sales by customer Sep. 2024
Order received / Sales by customer Sep. 2024 (Million yen) (Million yen) Sales of each customer Orders of each customer ■2022.9 ■2022.9 ■2023.9 ■2023.9 231,720 ■2024.9 178,080 ■2024.9 162,531 205,691 186,932 131,674 23,916 21,661 24,805 21,138 22,931 16,440 9,141 21,704 13,898 16,143 8,373 7,741 Kyu
Slide 10: Order received / Sales by region Sep. 2024
Order received / Sales by region Sep. 2024 (Electrical & HVAC work excluding Solar plant construction work) (Million yen) (Million yen) Sales of each region Orders of each region ■2022.9 ■2022.9 ■2023.9 ■2023.9 116,593 ■2024.9 165,776 ■2024.9 98,180 135,489 81,710 119,476 37,614 57,125 52,598 29,611
Slide 11: Order received / Sales by region (Solar plant construction)
Order received / Sales by region Sep. 2024 (Solar plant construction work) (Million yen) (Million yen) Sales of each region Orders of each region ■2022.9 ■2022.9 ■2023.9 ■2023.9 ■2024.9 ■2024.9 16,289 13,508 10,396 10,093 10,195 10,581 8,586 5,777 5,022 4,625 3,100 1,374 199 202 108 509 496 454 Kyus
Slide 12: Situation of works on hand Sep. 2024
Situation of works on hand Sep. 2024 (Million yen) New orders in FY ended Sep. 2024 Order stock of each department ■2022.9 ■2023.9 Image 200,176 ■2024.9 189,719 179,052 170,047 166,810 168,221 164,531 144,903 112,465 Construction results in FY ended Sep. 2024 5,466 4,402 1,979 Power Electrical work
Slide 13: Investment in Power Operations
Investment in Power Operations Solar Power Plants Deals operated by group(Depreciated at the declining balance method) Deals through investment in equity(Depreciated at the straight line method) ※make capital investment and record the entire operation to other operations sales ※acquire investment se
Slide 14: Investment in Power Operations
Investment in Power Operations Deals operated by group Deals through investment in equity (Million yen) (Non-operating income) ■Solar Power Plants ■Wind Power Plants ■ Operating profit 1,522 1,406 ■Solar Power Plants ■Wind Power Plants 1,300 (Million yen) 1,097 1,087 971 Total 2,730 Total 2,798 Tota
Slide 15: Outline of balance sheet
Outline of balance sheet （Million yen, composition ratio） End of Mar. End of Sep. Increase Main factors behind 2024 2024 /decrease increase/decrease Cash on hand and in banks ▲11,903 324,418 280,060 Current assets ▲44,358 Trade notes and accounts receivable (64.5%) (60.2%) ▲38,697 178,865 185,231 In
Slide 16: Outline of C/F
Outline of C/F (Million yen) Details of statement to Sep.2023 Sep.2024 Sep. 2024 Profit before income taxes ＋20,140 Cash flow from operating 37,863 ▲461 Collection of trade receivables +39,636 activities Decrease in trade payables ▲45,954 Purchase of property, plant and Cash flow from investment equ
Slide 17: Capital Investment
Capital Investment FY2024 Mar. FY2024 Sep. Capital 3.0 billion yen 1.6 billion yen investment 2.8 billion yen 1.4 billion yen ・Replacement of branches and ・Replacement of branches and business offices of Kyudenko business offices of Kyudenko ・Machinery and equipment, etc. Facility work ・Machinery an
Slide 18: Plan for fiscal year
Plan for fiscal year All Rights Reserved. Copyright KYUDENKO CORPORATION 17
Slide 19: Plan for March 2025
Plan for March 2025 (Million yen) March 2024 Plan for March 2025 Year-on- Result March 2025 Year 2Q Result Progress 469,057 500,000 106.6% 219,303 43.9% Sales (100.0%) (100.0%) (100.0%) 64,632 70,500 109.1% 32,651 46.3% Gross profit (13.8%) (14.1%) (14.9%) 38,016 39,500 103.9% 18,254 46.2% Operating
Slide 20: Orders & Sales plan by department
Orders & Sales plan by department (Million yen) (Million yen) Sales of each department Orders of each department ■2024.3 ■2024.3 240,000 240,000 ■2025.3（plan） 221,000 ■2025.3（plan） 204,500 ■2025.3（2Q result） 213,481 ■2025.3（2Q result） 201,381 160,000 161,659 161,000 153,104 101,110 93,243 90,540 76,
Slide 21: Trend of dividends
Trend of dividends ・The year-end dividend for the fiscal year ending March 31, 2024, is resolved at 65 yen per share, an increase of 10 yen per share from the latest dividend forecast. ・The annual dividend for the fiscal year ending March 31, 2025 is planned to be 130 yen per share. Dividend Policy
Slide 22: Ukujima solar power plant
Ukujima solar power plant All Rights Reserved. Copyright KYUDENKO CORPORATION 21
Slide 23: Location of Ukujima
Location of Ukujima ■Ukujima is located at the northernmost tip of the Goto Islands, Sasebo City, Nagasaki Prefecture, Kyushu. The area is approximately 25㎢. Fukuoka Saga Oita Nagasaki Kumamoto Miyazaki Kagoshima Ukujima Terashima All Rights Reserved. Copyright KYUDENKO CORPORATION 22
Slide 24: Schematic of transmitting electricity
Schematic of transmitting electricity ■Converting AC electricity generated at Ukujima and Terashima to DC. Submarine cables will be used to interconnect and transmit power to Kyushu Electric Power Company's power transmission and distribution substation in Sasebo. HVDC building【image】 Submarine cabl
Slide 25: Situation on the island of Ukujima
Situation on the island of Ukujima ■For construction work, the project area is divided into six construction zones and managed. Work has now begun in the Iira area, the third construction zone. Briefing sessions will be held in the targeted construction zones in conjunction with the start of constru
Slide 26: Mid-term management plan
Mid-term management plan All Rights Reserved. Copyright KYUDENKO CORPORATION 25
Slide 27: Road map of sales plan
Road map of sales plan planned value 500 469 (Billion yen) 429 50.0 392 396 48.2 Power distribution 46.9 377 line work 46.6 45.8 45.7 195.0 193.9 Electrical 157.7 construction 149.1 155.9 148.4 148.0 HVAC 129.9 139.3 116.0 126.1 108.9 Renewable Energy Business,etc. 67.8 78.0 61.5 54.4 61.9 Others 45
Slide 28: Initiatives for the Three Reforms
Initiatives for the Three Reforms Three reforms Reform of construction capability Major Initiatives ・Strengthen hiring of engineers based on a long-term workforce plan ・Strengthen year-round recruitment ・Reduce the turnover rate of young engineers by reviewing technical education ・Promote on-the-job
Slide 29: New Headquarters ONE FUKUOKA BLDG.
New Headquarters【ONE FUKUOKA BLDG.】 「Gathering. Connect. Create the future.」 We “Gather” together to create new ideas and activate communication. Connecting people across departmental boundaries . Create the future" through new ways of working, ease of work, and reduction of environmental impact. Th
Slide 30: WorldSkills International
WorldSkills International Kihara (front row, second from left) and opening ceremony our board members and staff ⒸWorldSkills International Kihara competing in a competition Kihara's completed works Award Medals ⒸWorldSkills International ⒸWorldSkills International All Rights Reserved. Copyright KYUD
Slide 31: Appendix
Appendix All Rights Reserved. Copyright KYUDENKO CORPORATION 30
Slide 32: Corporate profile
Corporate profile Company name Kyudenko Corporation Established December 1, 1944 Capital ￥12,561 million Listed market Prime Market 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, To
Slide 33: Actual results of recruitment and workforce planning
Actual results of recruitment of human resources (Kyudenko individual) and workforce planning ≪ Comparison in actual results of recruitment for April 2024 with other ≪ Actual results of periodic recruitment of engineers and skilled persons≫ companies≫ 2017 2018 2019 2020 2021 2022 2023 2024 Large el
Slide 34: 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 35: Key measures
Key measures "Promotion of Environmental Management" was added as a new issue to be addressed. While incorporating environmental management and CSV management into our management strategy, we will adapt to an environment that is changing at an unprecedented pace. Three reforms Issues continuing fr
Slide 36: Work Improvement
Acceleration of Work Style Reform ■ In April 2023, "Work Style Reform Department" was established as an organization directed by the President. ⑴Based on the Workplace Reform Action Plan, scrutinize the contents of the implementation plans and manage some progress. ⑵Establish a support system for co
Slide 37: 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 38: 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 39: Basic Sustainability Policy
Basic Sustainability Policy Basic Policy Based on the corporate philosophy, the Kyudenko Group will create a sustainable society and improve the corporate value of the Group by solving social issues through its business activities. Important issues (materialities) All Rights Reserved. Copyright KY
Slide 40: Efforts to Achieve Carbon Neutrality
Efforts to Achieve Carbon Neutrality Medium- and Long-term Objectives for Environmental Management 2030：Reduce CO2 emissions intensity per sales of completed construction by at least 50% (compared to 2013) 2050：Achieve carbon neutrality 【Action items toward achieving these goals】 ・Introduction of EM
Slide 41: 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