Slide 1: KYUDENKO CORPORATION FY ending March 2022 Results briefing
Prime Market of Tokyo stock exchange : 1959 KYUDENKO CORPORATION FY ending March 2022 Results briefing May 13 th ,2022 All Rights Reserved. Copyright KYUDENKO CORPORATION 0
Slide 2: Table of contents
Table of contents Overview of business results 2 Plan for fiscal year 21 Highlights 3 Plan for fiscal year 22・23 P/L 4 Trend of dividends 24 Factors of change in OP 5～7 Mid-term management plan ・growth strategy 25 Sales, Orders and Works on hand Numerical targets 26 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 ¥375,474million ・The increase was due to solid orders for projects in the private sector, mainly in Kyushu. Year-on-year 115.5％ Sales ・Sales decreased due to the relatively large number ¥376,563million of large projects in the early stages of the process, which prevented sales fro
Slide 5: Outline of P/L March 2022
Outline of P/L March 2022 (Million yen) March 2021 March 2022 Year-on- Result Result year Plan (2021.4.28) Progress Sales 391,901 376,563 96.1% 410,000 91.8% (100.0%) (100.0%) (100.0%) Gross profit 56,631 57,361 101.3% 60,000 95.6% (14.5%) (15.2%) (14.6%) Operating profit 32,998 33,137 100.4% 35,000
Slide 6: Factors of change in OP March 2022
Factors of change in OP March 2022 （billion yen） 36 :Increase :Decrease A 34 Increase in E SG&A Power expenses B D distribution line work Increase in fixed Improvement in ▲0.0 ▲0.6 costs included in construction costs Profit margin +0.7 F Other business 32 C 33.1 32.9 ▲1.1 Decrease in Operating sale
Slide 7: Breakdown of construction sales and average profit margin
Breakdown of construction sales and average profit margin (Kyudenko individual : excluding power distribution line work) Average profit ratio 24.2 24.9 25.6 25.5 26.0 500,000 21.8 22.4 Construction sales（Million yen） 19.1 18.3 17.9 400,000 17.8 18.0 14.9 15.7 16.5 Total 315,566 Total 305,015 300,000
Slide 8: Breakdown of construction sales and average profit margin (quarterly)
Breakdown of construction sales and average profit margin (by quarterly accounting period) (Kyudenko individual : excluding power distribution line work) Average profit ratio 30.4 150,000 27.2 26.4 26.1 27.7 24.4Construction sales 24.4 （Million yen） Total 98,634 100,000 19.0 18.6 39,276 40% 17.8 Pro
Slide 9: Order received / Sales by department March 2022
Order received / Sales by department March 2022 (Million yen) (Million yen) Sales of each department Orders of each department ■2020.3 ■2020.3 ■2021.3 ■2021.3 176,545 ■2022.3 ■2022.3 166,344 153,773 156,104 152,495 155,087 142,575 134,955 123,199 126,801 131,872 119,511 118,699 59,306 46,900 54,564
Slide 10: Order received / Sales by customer March 2022
Order received / Sales by customer March 2022 (Million yen) (Million yen) Sales of each customer Orders of each customer ■2020.3 ■2020.3 442,510 ■2021.3 ■2021.3 ■2022.3 ■2022.3 331,538 307,216 300,437 290,213 246,431 47,539 47,509 46,428 47,306 45,497 28,428 27,798 45,593 33,133 24,617 27,526 17,208
Slide 11: Order received / Sales by region March 2022
Order received / Sales by region March 2022 (Electrical & HVAC work excluding Solar plant construction work) (Million yen) (Million yen) Sales of each region Orders of each region ■2020.3 ■2021.3 ■2022.3 ■2020.3 ■2021.3 ■2022.3 199,179 199,689 194,445 189,138 186,123 174,679 77,593 70,370 64,742 65,
Slide 12: Order received / Sales by region (Solar plant construction)
Order received / Sales by region March 2022 (Solar plant construction work) (Million yen) (Million yen) Sales of each region Orders of each region ■2020.3 ■2021.3 ■2022.3 ■2020.3 ■2021.3 ■2022.3 155,891 48,672 24,018 32,542 25,396 18,142 19,608 14,829 12,403 6,301 9,532 4,332 6,433 7,787 7,481 2,960
Slide 13: Year-end amount of works on hand
Year-end amount of works on hand (Million yen) New orders in FY ended March 2022 Order stock of each department ■2020.3 ■2021.3 ■2022.3 214,542 178,207 174,417 Image 119,138 113,266 121,216 110,767 107,940 108,765 1,514 1,375 1,247 Power Electrical work HVAC work Solar plant distribution line constr
Slide 14: Actual results of works FY March 2022
Actual results of works FY March 2022 Image All Rights Reserved. Copyright KYUDENKO CORPORATION 13
Slide 15: Outline of balance sheet
Outline of balance sheet （Million yen, composition ratio） End of Mar. End of Mar. Increase Main factors behind 2021 2022 /decrease increase/decrease 212,574 216,979 Raw materials and supplies +8,211 Current assets 4,405 Trade notes and accounts receivable +5,970 (58.0%) (57.3%) Cash on hand and in b
Slide 16: Outline of C/F
Outline of C/F (Million yen) Details of statement to Mar.2021 Mar.2022 Mar. 2022 Profit before income taxes＋36,833 Cash flow from operating activities 9,184 5,252 Income taxes paid ▲11,350 Increase in inventories ▲8,266 Purchase of investments in Cash flow from investment activities ▲4,232 ▲7,536 se
Slide 17: Capital Investment
Capital Investment FY2021 Mar. FY2022 Mar. Capital investment 3.6 billion yen 4.4 billion yen 3.3 billion yen 4.3 billion yen Replacement of branches , Replacement of branches , business business offices and sanatorium offices and sanatorium of of Kyudenko Kyudenko Facility work Machinery and equipm
Slide 18: 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 19: 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 20: 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 Fukui Miyagi operations sales) Depreciated at the Mainly declining balance method Fukushima Generation capacity Generation capacity Number of
Slide 21: Investment in Power Operations
Investment in Power Operations Deals operated by group Deals through investment in equity ■Solar Power Plants ■Wind Power Plants (Million yen) (Non-operating income) ■ Operating profit 1,748 1,734 1,556 ■Solar Power Plants ■Wind Power Plants 1,449 (Million yen) 1,144 962 Total 5,089 Total 4,878 Tota
Slide 22: Plan for fiscal year
Plan for fiscal year All Rights Reserved. Copyright KYUDENKO CORPORATION 21
Slide 23: Plan for March 2023
Plan for March 2023 (Million yen) March 2022 Plan for March 2023 Result March 2023 Year-on-Year 376,563 460,000 122.2％ Sales (100.0%) (100.0%) 57,361 63,000 109.8% Gross profit (15.2%) (13.7%) 33,137 34,500 104.1% Operating profit (8.8%) (7.5%) 36,828 37,000 100.5% Ordinary profit (9.8%) (8.0%) 26,2
Slide 24: Orders & Sales plan by department
Orders & Sales plan by department (Million yen) (Million yen) Sales of each department Orders of each department ■2021.3 ■2022.3 ■2023.3（plan） ■2021.3 ■2022.3 ■2023.3（plan） 240,000 240,000 202,100 183,000 153,773 152,495 155,087 147,500 139,000 142,575 123,199 131,872 119,511 118,699 77,000 48,000 5
Slide 25: Trend of dividends
Trend of dividends For the fiscal year ending March 31, 2023, we plan to pay an annual dividend of 100 yen per share. Dividend policy With130 regard to distribution of profits, we seek to keep appropriate financial strength and appropriately return profits to shareholders with strengthening 120 mana
Slide 26: Mid-term management plan
Mid-term management plan (Published on April 28,2020.) All Rights Reserved. Copyright KYUDENKO CORPORATION 25
Slide 27: Numerical targets
Numerical targets 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 work 334 billion yen Ordi
Slide 28: Road map of sales plan
Road map of sales plan Goals for the (Billion yen) final year 500 460 429 81.0 Solar plant 392 construction(17.0） Renewable energy business 377 Solar plant 67.8 construction (59.3） 61.5 Solar plant Solar plant 54.4 construction (54.5） construction (46.6） Electrical 191.0 construction 149.1 148.4 157
Slide 29: Promotion of Environmental Management
Promotion of Environmental Management １ Setting medium- to long-term environmental management goals ※1 Reduce CO2 emissions intensity per sales of completed construction by at least 50% by 2030(compared to 2013) Achieve carbon neutrality by 2050 ※1 Since total CO2 emissions are expected to incre
Slide 30: First introduction of Kyudenko EMS in Japan
Development of new business areas ： First introduction of Kyudenko EMS in Japan Ogi City, Saga Prefecture ➤ First case in the nation for a municipality Project to Strengthen Disaster Prevention Functions of Ogi City Hall ・Use of electricity generated by photovoltaic power generation equipment in the
Slide 31: Key measures for the Third year (FY2022)
Key measures for the Third year (FY2022) Theme for FY2022『 Practice business reforms adapted to changes in the environment 』 Strategies[Excerpt] The most important issues we face in the third year (FY2022) Receive domestic orders, strengthen and expand revenue base •Secure large-scale projects in Ja
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 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 34: 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 Full-year results Sales 341,771 360,872 408,143
Slide 35: Analysis of works on hand
Analysis of works on hand （Kyudenko individual : excluding power distribution work） Opening amount of construction works on hand by delivery schedule timing and Gross profit ratio for each year 6,000 15.2 14.8 14.5 14.0 13.7 Gross profit margin 5,000 Works on hand Total 415.2 （Billion yen） Total 377
Slide 36: Scheduled delivery amount by quarterly accounting period
Scheduled delivery amount by quarterly accounting period [Opening time] (Kyudenko individual : excluding power distribution work) Opening amount of construction works on hand of quarterly accounting period Scheduled delivery amount FY2018 FY2019 FY2020 FY2021 FY2022 （Billion yen） Total Total Total T
Slide 37: Orders received for small and medium-sized projects
Orders received for small and medium-sized projects (less than 100 million yen) (Kyudenko individual: excluding power distribution work) Orders for small- and medium-sized projects (contract amounts of less than 100 million yen), which have short construction periods and relatively high profit mar
Slide 38: 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 2022 with other companies≫ 2007～ 2016 2017 2018 2019 2020 2021 2022 Large e
Slide 39: 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 40: Summary of the Second year (FY2021)
Summary of the Second year (FY2021) ■Human resource development through the introduction of the LMS to complement OJT, and productivity improvement and efficiency enhancement through the DX project are progressing well. ■On the other hand, we recognize that we need continued efforts due to concerns
Slide 41: 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 42: 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 43: Air conditioning/heat source control optimization system
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 44: 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 45: 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 46: 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 47: 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 48: Project contents: Fukuoka Waterfront Next, Tenjin Big Bang, Hakata Connected
【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