Kraftia Corporation · TSE:1959
Kraftia — Kyudenko — Q2 FY2024 Earnings Presentation
44 slides from Kraftia's earnings presentation, Nov 8, 2023
Slide 1: FY ending March 2024 2nd Quarter Results briefing
Prime Market of Tokyo stock exchange : 1959 KYUDENKO CORPORATION FY ending March 2024 2nd Quarter Results briefing Nov. 8 th ,2023 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 Mid-term management plan ・growth strategy 21 Sales, Orders and Works on hand Numerical targets 22 1. Orders received/sales by depar
Slide 3: Overview of business results
Overview of business results All Rights Reserved. Copyright KYUDENKO CORPORATION 2
Slide 4: Highlights
High lights Orders ¥245,063 million Year-on-year 91.7% Sales ¥200,617 million Year-on-year 119.0% Operating profit ¥13,692 million Year-on-year 132.7% All Rights Reserved. Copyright KYUDENKO CORPORATION 3
Slide 5: Outline of P/L March 2024, 2nd quarter
Outline of P/L March 2024, 2nd quarter (Million yen) March 2023, March 2024, 2Q Increase 2Q Result Result 2nd-on-2nd /decrease Sales 168,522 200,617 ＋32,095 119.0% (100.0%) (100.0%) Gross profit 23,417 26,860 ＋3,443 114.7％ (13.9%) (13.4%) Operating profit 10,315 13,692 ＋3,376 132.7％ (6.1%) (6.8%) Or
Slide 6: Factors of change in OP
Factors of change in OP A 15 Increase in （Billion Yen） sales :Increase ▲0.3 ▲0.0 :Decrease B ▲0.2 ▲0.1 Ｃ Ｄ Decrease in profit margin Power Other business Ｅ distribution +4.0 line work Increase in SG&A expenses 13.6 10 10.3 Operating profit in March, 2024 Operating 2Q end profit in March, 2023 2Q end
Slide 7: Breakdown of construction sales and average profit
Breakdown of construction sales and average profit Sep.2023 (Kyudenko individual : excluding power distribution line work) 25.5 25.8 26.7 25.5 27.2 Average profit ratio 26.0 25.6 22.6 18.8 200,000 17.5 15.8 15.6 Construction sales 16.3 14.6 (Million yen) 14.8 Total 151,760 150,000 Total 142,645 Tota
Slide 8: Order received / Sales by department Sep. 2023
Order received / Sales by department Sep. 2023 (Million Yen) (Million Yen) Sales of each department Orders of each department ■2021.9 ■2021.9 120,000 ■2022.9 ■2022.9 130,028 ■2023.9 ■2023.9 120,000 113,486 80,185 99,703 94,924 62,967 66,584 84,581 62,512 56,388 66,052 48,972 25,078 21,487 22,860 21,
Slide 9: Order received / Sales by customer Sep. 2023
Order received / Sales by customer Sep. 2023 (Million Yen) (Million Yen) Sales of each customer Orders of each customer ■2021.9 ■2021.9 180,000 ■2022.9 162,531 ■2022.9 231,720 ■2023.9 ■2023.9 205,691 131,674 123,725 180,000 141,822 21,661 21,138 22,931 21,009 21,806 16,642 16,440 8,373 9,141 21,704
Slide 10: Order received / Sales by region Sep. 2023
Order received / Sales by region Sep. 2023 (Electrical & HVAC work excluding Solar plant construction work) (Million yen) (Million yen) Sales of each region Orders of each region ■2021.9 ■2022.9 ■2023.9 ■2021.9 ■2022.9 ■2023.9 130,000 165,776 98,180 135,489 130,000 81,710 77,512 105,047 37,614 52,59
Slide 11: Order received / Sales by region (Solar plant construction)
Order received / Sales by region Sep. 2023 (Solar plant construction work) (Million yen) (Million yen) Sales of each region Orders of each region ■2021.9 ■2022.9 ■2023.9 ■2021.9 ■2022.9 ■2023.9 16,289 10,093 10,581 10,396 9,850 10,195 8,586 6,770 6,099 3,519 4,625 3,100 1,596 509 202 446 496 199 0 0
Slide 12: Situation of works on hand Sep. 2023
Situation of works on hand Sep. 2023 (Million yen) New orders in FY ended Sep. 2023 Order stock of each department ■2021.9 ■2022.9 ■2023.9 200,176 Image 179,052 170,047 168,221 170,000 164,531 166,209 144,903 130,246 125,934 4,402 1,979 1,859 0 Power Electrical work HVAC work Solar plant distributio
Slide 13: Investment in Power Operations
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 operations (acquire investment securities and record an amount equal to the equity to non-operating sales) Depreciated at the
Slide 14: Investment in Power Operations
Investment in Power Operations Mar.2024 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 1,406 ■Solar Power Plants ■Wind Power Plants 1,300 1,119 1,097 1,087 (Million yen) 971 Tot
Slide 15: Outline of balance sheet
Outline of balance sheet (Million Yen, composition ratio) End of Mar. End of Sep. Increase Main factors behind 2023 2023 /decrease increase/decrease Cash on hand and in banks +29,693 278,220 284,838 Trade notes and accounts receivable Current assets 6,617 ▲25,757 (62.3%) (62.4%) Costs of uncompleted
Slide 16: Outline of C/F
Outline of C/F (Million Yen) Details of statement to Sep. 2022 Sep. 2023 Sep. 2023 Profit before income taxes ＋15,437 Decrease in notes and accounts receivable on completed construction contracts Cash flow from operating activities 7,576 37,863 +26,151 Increase in costs of uncompleted construction c
Slide 17: Capital Investment
Capital Investment End of Mar. 2023 End of Sep. 2023 Capital investment 3.4 billion yen 1.3 billion yen 3.0 billion yen 1.2 billion yen ・Replacement of branches and ・Replacement of branches and business offices of Kyudenko business offices of Kyudenko ・Machinery and equipment, etc. for ・Machinery an
Slide 18: Plan for fiscal year
Plan for fiscal year All Rights Reserved. Copyright KYUDENKO CORPORATION 17
Slide 19: Plan for March 2024
Plan for March 2024 (Million yen) March 2023 Plan for March 2024 Result March 2024 Year-on-Year 2Q Result Progress 395,783 460,000 116.2％ 200,617 43.6% Sales (100.0%) (100.0%) (100.0%) 57,889 64,500 111.4% 26,860 41.6% Gross profit (14.6%) (14.0%) (13.4%) 32,083 35,500 110.7% 13,692 38.6% 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 ■2022.3 ■2023.3 ■2024.3（plan） ■2022.3 ■2023.3 ■2024.3（plan） 240,000 240,000 224,000 214,668 186,000 159,783 152,495 155,087 154,647 147,000 134,156 148,000 131,872 119,511 49,000 64,000 4
Slide 21: Trend of dividends
Trend of dividends Dividend Policy and Dividends for the Current Fiscal Year ■Regarding profit distribution, we will strive to maintain an appropriate financial structure and return profits to shareholders, while securing the internal reserves necessary to strengthen our management base and further
Slide 22: Mid-term management plan
Mid-term management plan (Published on April 28,2020.) All Rights Reserved. Copyright KYUDENKO CORPORATION 21
Slide 23: Numerical targets
Numerical targets Main theme Establish a management foundation for sustainable growth ～Realization of the three reforms～ Numerical target Final year（Mar.2025） （Breakdown of construction sales） Power distribution line work 50 billion yen Sales 500 billion yen Electrical･HVAC work 334 billion yen Ordi
Slide 24: Road map of sales plan
Road map of sales plan Goals for the (Billion yen) final year 500 460 429 396 81.0 392 Renewable energy business 377 Solar plant 67.8 construction (59.3） 45.8 61.5 Solar plant Solar plant construction (54.5） 54.4 construction (39.7） Electrical Solar plant 191.0 construction (46.6） construction 155.9
Slide 25: Key measures for the fourth year (FY2023)
Key measures for the fourth year (FY2023) The Most Important Issues Strategies[Excerpt] Practice Productivity Reform •Achieve operational efficiency through DX making efficient •Promote the plan for work style reform by the Rise in cost Largest amount department. of work in Promote human capital Per
Slide 26: Acceleration of Work Style Reform
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 27: KYOCERA GREEN INNOVATION, LLC
KYOCERA GREEN INNOVATION, LLC Name KYOCERA GREEN INNOVATION, LLC Head Office 6 Takeda Tobadono-cho, Fushimi-ku, Kyoto-shi, Kyoto Prefecture (at Kyocera’s Head Office) Business Renewable energy power generation Established June 8, 2023 Representatives Kyocera Corporation Kyudenko Corporation Capital
Slide 28: Appendix
Appendix All Rights Reserved. Copyright KYUDENKO CORPORATION 27
Slide 29: 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 30: 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 408,143 428,939 391,901 376,563
Slide 31: 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) 150,000 40.9 Average profit ratio 27.8 26.3 Construction sales （Million yen） 16.7 100,000 16.0 15.2 Total 87,477 Total 64,283 Project Not delivere
Slide 32: Analysis of works on hand
Analysis of works on hand （Kyudenko individual : excluding power distribution work） Works on hand （Billion yen） Third quarter opening construction works on hand by delivery schedule timing Total 466.1 Total 469.3 500.0 Total 402.5 Total 383.4 121.1 400.0 183.7 (+62.7) Total 316.8 Deliver on after ne
Slide 33: 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) 51,626 52,713 52,924 53,106 45,850 43,678 2018.9 2018.2Q 2019.2Q 2020.2Q 20
Slide 34: Actual results of recruitment of human resources 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 2023 with other companies≫ 2007～ 2017 2018 2019 2020 2021 2022 2023 Large e
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: 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 37: 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 38: Development of new business areas
Development of new business areas ： Air conditioning/heat source control optimization system 『Air conditioning/heat source control optimization system using AI optimization technology』 ・Jointly developed with Grid Corporation, a company with proprietary cutting-edge AI technology, as a project partn
Slide 39: 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 40: Benefits of being involved from the design stage
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: 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 43: 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 44: Fukuoka Waterfront Next, Tenjin Big Bang, Hakata Connected project contents
【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