Slide 1: FY ending March 2018 Results briefing
1st section of Tokyo stock exchange : 1959 KYUDENKO CORPOREATION FY ending March 2018 Results briefing May 11th ,2018 All Rights Reserved. Copyright KYUDENKO CORPORATION 0
Slide 2: Table of contents
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 5 Power distribution line work 21 Sales, Orders and Works on hand Trend of dividends 22 1. Orders received/sales by department 6 M
Slide 3: Overview of business results
Overview of business results All Rights Reserved. Copyright KYUDENKO CORPORATION 2
Slide 4: Highlights
High lights Orders Electrical, 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 and Year-on-year 101.8％ metropolitan area and exceeded last year results. Sales Electrical and HVAC gre
Slide 5: Outline of P/L March 2018
Outline of P/L March 2018 (Million yen) March 2017 March 2018 Year-on- Result Result year Plan (2017.4.28) Progress Sales 341,771 360,872 105.6% 370,000 97.5% (100.0%) (100.0%) (100.0%) Gross profit 51,951 56,659 109.1% 58,000 97.7% (15.2%) (15.7%) (15.7%) Operating profit 30,732 34,726 113.0% 36,00
Slide 6: Factors of change in OP March 2018
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 indire
Slide 7: Order received / Sales by department March 2018
Order received / Sales by department March 2018 Sales of electrical work greatly increased. Sales of HVAC steady increased and orders greatly increased. Orders of solar plant construction decreased but exceeded the assumption by 10 billion yen. Sales of each department (Million yen) (Million yen) Or
Slide 8: Order received / Sales by customer March 2018
Order received / Sales by customer March 2018 It was steady, and private sector increased. (Million yen) (Million yen) Sales of each customer Orders of each customer ■2016.3 ■2017.3 ■2018.3 ■2016.3 ■2017.3 ■2018.3 350,000 350,000 311,604 298,116 263,796 289,923 249,215 212,150 47,881 48,652 49,136 4
Slide 9: Order received / Sales by region March 2018
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 of last year, the orders received in Kyushu region keeps sideways movement. Tokyo are
Slide 10: Order received / Sales by region March 2018 (Solar)
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) (Million
Slide 11: Year-end amount of works on hand
Year-end amount of works on hand It was greatly extended with each department by the reinforcement of the management base including the increase of the construction staff. The Solar plant construction exceeded 100 billion yen by the prolongation of the construction period with upsizing. (Million yen
Slide 12: Actual results of works FY March 2018
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 All Rights Reserved. Copyright KYUDENKO CORPORATION 11
Slide 13: Outline of balance sheet
Outline of balance sheet （百万円、下段は構成比） End of Mar. End of Mar. Increase Main factors behind 2017 2018 /decrease increase/decrease 158,172 182,640 Current assets 24,468 Trade notes and accounts receivable 21,406 (52.6%) (56.2%) 142,306 142,513 Investment securities 1,777 Fixed assets 206 Differed tax
Slide 14: Outline of C/F
Outline of C/F (Million Yen) March March Details of statement to 2017 2018 Mar. 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
Slide 15: Capital Investment
Capital Investment FY2017 Mar. FY2018 Mar. Capital investment 7.4 billion yen 4.2 billion yen 3.9 billion yen 1.7 billion yen Replacement of corporate Replacement of business offices of dormitories’ facilities and Kyudenko reconstruction of business offices of Kyudenko Facility work EMS demonstratio
Slide 16: Investment in Power Operations (Solar Power Plants)
Investment in Power Operations (Solar Power Plants) Mega solar power plant Miyagi Fukushima Ishikawa Okayama Gotou Hiroshima Deals operated by group - In Operation - Under construction Chiba - Preparing for construction Projects for equity investment - In Operation Aichi - Under construction Nara Mi
Slide 17: 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 (acquire investment securities and record an entire operation to other operations amount equal to the equity to non-operating sales) revenues) Deprec
Slide 18: 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 operations sales) Depreciated at the Mainly declining balance method Generation capacity Generation capacity Number of (the entire (that equal
Slide 19: Plan for fiscal year
Plan for fiscal year All Rights Reserved. Copyright KYUDENKO CORPORATION 18
Slide 20: Plan for March 2019
Plan for March 2019 (Million yen) March 2018 Plan for March 2019 Result March 2019 Year-on-Year 2nd quarter total 2nd-on-2nd 360,872 385,000 106.7% 165,000 103.5% Sales (100.0%) (100.0%) (100.0%) 56,659 63,000 111.2% 26,000 106.5% Gross profit (15.7%) (16.4%) (15.8%) 34,726 38,000 109.4% 13,500 101.
Slide 21: Orders & Sales plan by department
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) (Million yen) Sales of each department Orders of each department ■2017.3 ■2018.3 ■2019.3（plan） ■2017.3 ■2018.
Slide 22: Power distribution work: Present condition, Tasks and actions
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 pr
Slide 23: Trend of dividends
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. 100 100 special 90 90 10 80 special 70 70 10 60 50 special 45 40 Memorial 15 30 special 25 2 special 13 7 20 10 10 3 0 Mar,2011 Mar,2012 Mar,
Slide 24: Mid-term management plan growth strategy
Mid-term management plan growth strategy All Rights Reserved. Copyright KYUDENKO CORPORATION 23
Slide 25: Numerical target
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 Over Gross Profit Ratio ％ 15.7 ％ 15 Over Operating Profit Ratio ％ 9.6 ％ 9 Over R O E ％ 16.8 ％ 14 All Rights R
Slide 26: Road map of sales plan
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 101 120 105 94 75 80 Power distribution line 45 47 47 47 46 47 Others 15 13 15 10 14 0 14 2015.3 2016.3 2017.3 2018.3 2019.3 2020.3 Medium-term management plan（201
Slide 27: Breakdown of sales plan (March 2020)
Breakdown of sales plan （March 2020） Total sales 400 Billion yen Each business lines By region (Electrical and HVAC) Solar plant construction 50 Bilion yen Kyushu 176 Bilion yen Electrical and HVAC 289 Bilion yen Tokyo 73 Bilion yen Power distribution line 47 Bilion yen Kansai/Okinawa 23 Bilion yen
Slide 28: Axes of the growth strategy and key measures
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
Slide 29: Differentiation Strategy of Kyudenko (1)
<Differentiation Strategy of Kyudenko (1)> Come to the top with the use of technology of integrated facility engineering service Ratio 6 ： 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 Top 3 Top 7 in terms of sales
Slide 30: Differentiation Strategy of Kyudenko (2)
<Differentiation Strategy of Kyudenko (2)> Firm base in Kyushu/Okinawa ●●● 111 business bases across Kyushu and ● ■■● ● ● ● ● ● ● ■● ●● ● ● ● ■ ● ● Okinawa ● ●● ● ● ● ● ● ● ● ● ● ● ■■● ● ● ● ● ● Oita ● ● ● ■ ● ■● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ■● ■ ● ● ● ■ ● ■● ● Deploy engineers and skilled
Slide 31: Differentiation Strategy of Kyudenko (3)
<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 and Reorganized Tokyo organization and established Tokyo strengthening Ⓐ 2008 Headquarters Reorganized Osaka br
Slide 32: Differentiation Strategy of Kyudenko (4)
<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 pi
Slide 33: Differentiation Strategy of Kyudenko (5)
<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 req
Slide 34: Differentiation Strategy of Kyudenko (6)
<Differentiation Strategy of Kyudenko (6)> Details of diverse business models (facility work) Business model Characteristics Targets Competitors Strengths of Kyudenko Ⓐ Proposal and original ・One-stop construction of Regional mid- and small- Ordinary companies: Engineers’ recommendation ability cont
Slide 35: 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
Slide 36: Fukuoka Waterfront Next, Tenjin Big Bang
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 Waterfront area maximum) Sanyo Shinkansen line Request for relaxation of height restriction Hakata Station area (50m→60m) Fukuoka urban expr
Slide 37: KYUDENKO Group
KYUDENKO Group All Rights Reserved. Copyright KYUDENKO CORPORATION 36
Slide 38: Corporate profile
Corporate profile Company name Kyudenko Corporation Established December 1, 1944 Capital ￥12,550 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-Ikebukuro, Tos
Slide 39: History of our group
History of our group Sales Million yen 450000 1944 Established in fukuoka. 1945 Tokyo branch established. 400000 1947 Power distribution work contract concluded with Kyushu Electric Power Co., Inc. 1964 Sales of HVAC work started. 1968 Listed on Fukuoka Stock Exchange. Listed on 2nd Section, Osaka S
Slide 40: Business items
Business items KYUDENKO Group Facility engineering Other businesses ・Power distribution line construction ・Materials, machinery and tools sale ・Electrical, Information Communication facilities design and construction ・Renewable energy generation ・Heating, Ventilation, Air Conditioning, Water supply,