Slide 1: FY ending March 2021 2nd Quarter Results briefing
1st section of Tokyo stock exchange : 1959 KYUDENKO CORPORATION FY ending March 2021 2nd Quarter Results briefing Nov. 12 th ,2020 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 Plan for fiscal year 21 P/L 4 Orders/sales by department 22 Factors of change in OP 5・6 Trend of dividends 23 Sales, Orders and Works on hand Mid-term management plan ・growth strategy 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 ¥180,101million 2nd-on-2nd 91.9% Operating profit ¥11,244million 2nd-on-2nd 81.4% Orders ¥168,114million 2nd-on-2nd 86.6% All Rights Reserved. Copyright KYUDENKO CORPORATION 3
Slide 5: Outline of P/L
Outline of P/L March 2021, 2nd quarter (Million yen) March 2020, March 2021, 2Q Increase 2Q Result Result 2nd-on-2nd /decrease Sales 195,870 180,101 ▲15,768 91.9% (100.0%) (100.0%) Gross profit 26,324 23,369 ▲2,955 88.8％ (13.4%) (13.0%) Operating profit 13,820 11,244 ▲2,576 81.4％ (7.1%) (6.2%) Ordin
Slide 6: Factors of change in OP
Factors of change in OP （Billion Yen） 20 :Increase :Decrease A ・Bonus decrease ・Decrease of other fixed cost (overhead cost) 15 in SG&A Gross Cost B ＋0.5 ▲1.2 13.8 Decrease in C ▲1.0 sales Declining profit D ▲0.5 E margins on 11.2 ▲0.4 construction Power distribution Other business Operating line wo
Slide 7: Breakdown of construction sales and factor of gross profit ratio
Breakdown of construction sales and Factor of gross profit ratio Sep.2020 (Kyudenko individual : excluding power distribution line work) Average profit ratio 25.7 24.7 25.5 25.8 23.7 Construction sales (Million yen) 22.5 200,000 18.7 18.8 18.1 16.3 150,000 15.8 total 123,930 total 142,645 total 135,
Slide 8: Order received / Sales by department
Order received / Sales by department Sep. 2020 (Million Yen) (Million Yen) Sales of each department Orders of each department ■2018.9 ■2018.9 ■2019.9 ■2019.9 120,000 120,000 ■2020.9 ■2020.9 86,194 83,912 75,656 73,196 73,260 64,885 70,509 62,092 60,903 58,414 55,865 51,467 30,181 35,247 26,353 21,59
Slide 9: Order received / Sales by customer
Order received / Sales by customer Sep. 2020 (Million Yen) (Million Yen) Sales of each customer Orders of each customer ■2018.9 ■2018.9 ■2019.9 ■2019.9 180,000 180,000 175,408 ■2020.9 ■2020.9 164,305 147,952 145,917 123,094 130,202 23,352 24,038 21,601 22,247 12,797 22,438 22,761 19,139 15,150 11,56
Slide 10: Order received / Sales by region
Order received / Sales by region Sep. 2020 (Electrical & HVAC work excluding Solar plant construction work) (Million yen) (Million yen) Sales of each region Orders of each region ■2018.9 ■2019.9 ■2020.9 ■2018.9 ■2019.9 ■2020.9 130,000 130,000 115,548 103,417 87,825 86,558 78,433 78,043 39,788 33,449
Slide 11: Order received / Sales by region (solar plant construction)
Order received / Sales by region Sep. 2020 (Solar plant construction work) (Million yen) (Million yen) Sales of each region Orders of each region ■2018.9 ■2019.9 ■2020.9 ■2018.9 ■2019.9 ■2020.9 50,000 50,000 26,715 24,211 17,018 14,028 10,401 11,434 8,028 7,204 5,752 4,818 1,592 2,642 1,440 889 2,00
Slide 12: Situation of works on hand
Situation of works on hand Sep. 2020 (Million yen) New orders in FY ended Sep. 2020 Order stock of each department ■2018.9 ■2019.9 ■2020.9 197,976 Image 170,000 154,339 142,377 127,513 131,025 121,714 115,814 114,495 83,725 1,798 1,663 1,751 0 Power Electrical work HVAC work Solar plant distribution
Slide 13: Actual results of works
Actual results of works Sep. 2020 Image Image (C)SoftBank Hawks 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 2020 2020 /decrease increase/decrease 216,269 186,171 Current assets ▲30,097 Trade notes and accounts receivable (58.7%) (55.0%) ▲45,331 152,212 152,132 Machinery, vehicles, tools, furnitur
Slide 15: Outline of C/F
Outline of C/F (Million Yen) Details of statement to Sep. 2019 Sep. 2020 Sep. 2020 Income before income taxes and minority interests ▲2,790 5,318 12,096 Decrease in trade notes and accounts Cash flow from operating activities receivable ＋21,925 Decrease in advances received on uncompleted constructi
Slide 16: Capital Investment
Capital Investment End of Mar. 2020 End of Sep. 2020 Capital investment 4.1 billion yen 1.7 billion yen 3.9 billion yen 1.6 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 solor 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) Wind power plant Deals operated by group (make capital investment and record the entire operation to other Miyagi operations sales) Fukushima Generation capacity Generation capacity Depreciated at the Mainly declining balance method Number of (the e
Slide 20: Investment in Power Operations
Investment in Power Operations (Million yen) Deals through investment in equity (Million yen) Deals operated by group(sales) (Non-operating income) ■Wind Power Plants ■Wind Power Plants ■Solar Power Plants ■Solar Power Plants 4,205 4,031 3,508 1,447 1,412 3,233 2,263 876 593 1,048 369 938 883 790 36
Slide 21: Plan for fiscal year
Plan for fiscal year All Rights Reserved. Copyright KYUDENKO CORPORATION 20
Slide 22: Plan for March 2021
Plan for March 2021 (Million yen) March 2020 Plan for March 2021 Result March 2021 Year-on-Year 2Q Result Progress 428,939 413,000 96.3% 180,101 43.6% (100.0%) (100.0%) (100.0%) Sales 60,093 56,400 93.9% 23,369 41.4% (14.0%) (13.7%) (13.0%) Gross profit 36,022 32,000 88.8% 11,244 35.1% (8.4%) (7.7%)
Slide 23: Orders & Sales plan by department
Orders & Sales plan by department (Million yen) (Million yen) Sales of each department Orders of each department ■2019.3 ■2020.3 240,000 ■2021.3（plan） ■2019.3 ■2020.3 ■2021.3（plan） 240,000 176,545 166,344 162,646 175,200 165,667 156,104 152,400 150,469 134,955 126,801 126,573 121,700 125,500 78,000
Slide 24: Trend of dividends
Trend of dividends With regard to dividends for the fiscal year ending March 2021, we plan to pay an annual dividend of ¥ 100 per share. special 100 100 100 110 90 100 special 90 10 70 80 70 10 60 50 special 45 Memorial special 40 25 15 special 30 13 2 10 20 7 10 3 0 Mar,2011 Mar,2012 Mar,2013 Mar,2
Slide 25: Mid-term management plan
Mid-term management plan (Published on April 28,2020.) • With the spread of the new coronavirus infection on a global scale, the risk of an economic downturn is increasing. At this time, it is difficult to estimate the impact on the Group's business performance in terms of scale and duration, so thi
Slide 26: New mid-term management plan (2020-2024)
New mid-term management plan(2020～2024） Establish a management foundation for sustainable growth Main theme ～Realization of the three reforms～ Numerical target Final year（Mar.2024） （Breakdown of construction sales） 50 billion yen 500 billion yen Power distribution line work Sales Electrical･HVAC wor
Slide 27: New mid-term management plan (2020-2024)
New mid-term management plan(2020～2024） Establish a management foundation for sustainable growth ～Realization of the three reforms～ Strong and muscular corporate structure Three reform construction capability productivity governance Issues continuing from the previous mid-term management plan Deepen
Slide 28: Road map of sales plan
Road map of sales plan Goals for the (Billion yen) final year 500 429 81.0 Solar plant construction(17.0） Renewable energy business Solar plant 67.8 construction (59.3） Electrical 191.0 construction 157.7 HVAC 143.0 129.9 Power distribution line 50.0 46.9 Others 26.7 35.0 Mar.2020 Mar.2021 Mar.2022
Slide 29: Relevance to the SDGs
New mid-term management plan(2020～2024） (Relevance to the SDGs) We will steadily advance the initiatives set forth in the Medium-Term Management Plan and contribute to the realization of the SDGs, which have a high degree of affinity with the businesses of the Group, through our business activities.
Slide 30: 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 for April skilled persons≫ 2020 with other companies≫ 2007～ 2015 2016 2017 2018 2019 2020 2014 Large e
Slide 31: Digital Transformation
Digital Transformation ・The DX Promotion Department was established to strengthen the Group's DX promotion structure. (October 1, 2020) ・Initiate the development of new technologies such as IT and IoT to improve productivity. ・Create new innovations across the business. Promotion of DX Transforming
Slide 32: Digital Transformation directionality
Digital Transformation ～directionality～ Introduce advanced technologies such as AI and IoT to increase the sophistication, labor savings, and efficiency of work, education, and training related to design and construction management, etc., and to create new businesses and business models that utilize
Slide 33: Energy Service Business
Energy Service Business ・Established an independent and exclusive subsidiary to develop the ES business, which is set out in the Medium-Term Management Plan. Overview of the new company and ES business scheme Capital 5 million yen Investor Kyudenko Establishment July 2020. Start of business August 1
Slide 34: Energy Service Business directionality
Energy Service Business ～directionality～ We will expand our business beyond the construction of electricity, water, communications and other infrastructure for daily life to include the development of smart cities and other comfortable urban areas and the provision of local public services, and we w
Slide 35: Appendix
Appendix All Rights Reserved. Copyright KYUDENKO CORPORATION 34
Slide 36: Appendix(1) Analysis of works on hand
Appendix(1) Analysis of works on hand （Kyudenko individual : excluding power distribution work） Works on hand Third quarter opening construction works on hand by delivery schedule timing （Billion yen） Total Total 4,025 4,000 Total 3,599 318.0 Total Deliver on after next FY 3,000 3,168 132.4 235.4 11
Slide 37: Appendix(2) Analysis by scale of order
Appendix(2) Analysis by scale of order (Kyudenko individual : excluding power distribution work） (Million yen) 50,090 51,626 ■2017.9 ■2018.9 ■2019.9 ■2020.9 45,850 43,678 25,426 26,626 22,265 20,445 100～300 million yen Under 100 million yen All Rights Reserved. Copyright KYUDENKO CORPORATION 36
Slide 38: Appendix(3) Prediction about industry
Appendix(3) 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
Slide 39: Appendix(4) Power distribution work
Appendix(4) Power distribution work Present condition Three of Kyushu Electric Power Co.'s four nuclear power plants, excluding Genkai Unit 4, have stopped generating power for routine inspections. In the first half of the year, the volume of construction work decreased compared to the previous
Slide 40: Appendix(5) Uku island Mega solar generation business
Appendix(5) Uku island Mega solar generation business Overview of business Content of Mega solar generation business FIT unit price 40yen/ｗ business while operating agriculture Scheduled operation start July 2023 EPC KYUDENKO About 140 billion yen month Power generation The largest scale in Japan O&
Slide 41: Appendix(6) Benefits of being involved from the design stage
Appendix(6) Benefits of being involved from the design stage Front-loading initiatives ・[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 ・[Constr
Slide 42: Appendix(7) Specific measures to improve the profit margin
Appendix(7) Specific measures to improve the profit margin (excerpt) ・Forecasting the peak of busyness in the whole construction Factor Measures 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
Slide 43: Appendix(8) Details of diverse business models
Appendix(8) Details of diverse business models (facility work) Ⓐ Proposal and original business 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 indust
Slide 44: Appendix(9) Fukuoka Waterfront Next, Tenjin Big Bang, Hakata Connected
Appendix(9) 【Positional relationship】 Fukuoka Waterfront Next, Tenjin Big Bang, Hakata Connected Relaxation of height restriction 38 hectares in the waterfront area (70m→100m) 1.7 hectare in Tenjin area (67m→115m at Sanyo Shinkansen line maximum) Waterfront area Request for relaxation of height rest
Slide 45: Appendix(10) Project contents
Appendix(10) 【Project contents】 Fukuoka Waterfront Next, Tenjin Big Bang, Hakata Connected Project Purpose Period and scale ・By promoting the ・Through 2024 redevelopment of the Tenjin ・Total floor area area, which is the center of 757,000㎡ ①Tenjin Big Bang Fukuoka, enhance the role ・Reconstruction o
Slide 46: Appendix(11) Corporate profile
Appendix(11) Corporate profile Company name Kyudenko Corporation Established December 1, 1944 Capital ￥12,561 million Listed market 1st Section of Tokyo Stock Exchange, Fukuoka Stock Code Exchange 1959 Head office 1-23-35 Nanokawa, Minamiku, Fukuoka city Tokyo head office Sunshine 60 3-1-1 Higashi-I