Slide 1: FY ending March 2024 Results briefing
Prime Market of Tokyo stock exchange : 1959 KYUDENKO CORPORATION FY ending March 2024 Results briefing May 16 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 19 Highlights 3 Plan for fiscal year 20・21 Difference between numerical targets at the P/L 4 time of formulation of the FY2020 Mid-Term Management Plan and the FY2025 Plan 22 Factors of change in OP 5～7 Road map of sales plan 23 S
Slide 3: Overview of business results
Overview of business results All Rights Reserved. Copyright KYUDENKO CORPORATION 2
Slide 4: Highlights
High lights Orders ¥440,864 million Year-on-year 100.1% Sales ¥469,057 million Year-on-year 118.5% Operating profit ¥38,016 million Year-on-year 118.5% All Rights Reserved. Copyright KYUDENKO CORPORATION 3
Slide 5: Outline of P/L March 2024
Outline of P/L March 2024 (Million yen) March 2023 March 2024 Year-on- Result Result year Plan (2023.4.28) Progress Sales 395,783 469,057 118.5% 460,000 102.0% (100.0%) (100.0%) (100.0%) Gross profit 57,889 64,632 111.6% 64,500 100.2% (14.6%) (13.8%) (14.0%) Operating profit 32,083 38,016 118.5% 35,
Slide 6: Factors of change in OP March 2024
Factors of change in OP March 2024 （billion yen） :Increase 45 :Decrease A B Increase in Decrease in sales Profit margin C D Power E 40 ▲2.7 distribution line work Other business Increase in SG&A expenses ▲0.2 +0.1 ▲0.8 +9.6 35 38.0 Operating profit in March,2024 30 32.0 Operating profit in 25 March,
Slide 7: Average profit ratio
Breakdown of construction sales and average profit margin (Kyudenko individual : excluding power distribution line work) Average profit ratio 26.0 25.6 25.6 25.5 25.1 22.4 500,000 21.4 19.5 Total 354,127 400,000 17.8 17.9 Construction sales 16.5 15.7 （Million yen） Total 315,566 15.0 121,901 14.9 Pro
Slide 8: Average profit ratio (quarterly)
Breakdown of construction sales and average profit margin (by quarterly accounting period) (Kyudenko individual : excluding power distribution line work) 150,000 Average profit ratio 40.9 Total 115,756 27.8 29.9 26.3 26.3 25.7 Construction sales 20.5 （Million yen） 16.7 56% 100,000 16.0 15.4 51,228 1
Slide 9: Order received / Sales by department March 2024
Order received / Sales by department March 2024 (Million yen) (Million yen) Sales of each department Orders of each department ■2022.3 ■2022.3 ■2023.3 ■2023.3 ■2024.3 ■2024.3 214,668 213,481 201,381 159,783 153,104 155,087 161,659 154,647 152,495 131,872 134,156 119,511 48,530 48,253 46,659 48,409 4
Slide 10: Order received / Sales by customer March 2024
Order received / Sales by customer March 2024 (Million yen) (Million yen) Sales of each customer Orders of each customer ■2022.3 ■2022.3 ■2023.3 373,938 ■2023.3 358,746 359,881 ■2024.3 ■2024.3 304,577 290,213 300,437 49,773 50,338 46,743 47,509 46,428 28,912 47,255 30,645 27,798 29,034 27,526 34,504
Slide 11: Order received / Sales by region March 2024
Order received / Sales by region March 2024 (Electrical & HVAC work excluding Solar plant construction work) (Million yen) (Million yen) Sales of each region Orders of each region ■2022.3 ■2023.3 ■2024.3 ■2022.3 ■2023.3 ■2024.3 257,048 243,391 243,203 200,263 199,689 186,123 97,819 83,678 75,432 78,
Slide 12: Order received / Sales by region (Solar plant construction)
Order received / Sales by region March 2024 (Solar plant construction work) (Million yen) (Million yen) Sales of each region Orders of each region ■2022.3 ■2023.3 ■2024.3 ■2022.3 ■2023.3 ■2024.3 32,542 28,817 25,396 20,362 20,203 18,764 14,829 12,956 12,585 9,532 9,480 6,433 3,513 864 660 793 716 72
Slide 13: Year-end amount of works on hand
Year-end amount of works on hand (Million yen) New orders in FY ended March 2024 Order stock of each department ■2022.3 ■2023.3 ■2024.3 174,417 178,975 166,875 156,189 150,262 141,706 121,216 123,499 110,767 Image 3,0293,306 1,247 Power Electrical work HVAC work Solar plant distribution line constru
Slide 14: Actual results of works FY March 2024
Actual results of works FY March 2024 All Rights Reserved. Copyright KYUDENKO CORPORATION 13
Slide 15: 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 16: 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 2,205 2,260 ■Solar Power Plants ■Wind Power Plants 1,748 1,734 (Million yen) 1,449 1,556 Total 5,124 Total 5,089 To
Slide 17: Outline of balance sheet
Outline of balance sheet （Million yen, composition ratio） End of Mar. End of Mar. Increase Main factors behind 2023 2024 /decrease increase/decrease 278,220 324,418 Cash on hand and in banks+31,013 Current assets 46,197 Trade notes and accounts receivable+15,985 (62.3%) (64.4%) Consumption tax recei
Slide 18: Outline of C/F
Outline of C/F (Million yen) Details of statement to Mar.2023 Mar.2024 Mar. 2023 Profit before income taxes＋41,158 Cash flow from operating activities 17,386 43,969 Increase in trade payables+20,767 Income taxes paid ▲11,103 Purchase of property, plant and equipment ▲1,836 Cash flow from investment
Slide 19: Capital Investment
Capital Investment FY2023 Mar. FY2024 Mar. Capital investment 3.4 billion yen 3.0 billion yen 3.0 billion yen 2.8 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 20: Plan for fiscal year
Plan for fiscal year All Rights Reserved. Copyright KYUDENKO CORPORATION 19
Slide 21: Plan for March 2025
Plan for March 2025 (Million yen) March 2024 Plan for March 2025 Result March 2025 Year-on-Year 469,057 500,000 106.6％ Sales (100.0%) (100.0%) 64,632 70,500 109.1% Gross profit (13.8%) (14.1%) 38,016 39,500 103.9% Operating profit (8.1%) (7.9%) 42,362 43,000 101.5% Ordinary profit (9.0%) (8.6%) 28,0
Slide 22: Orders & Sales plan by department
Orders & Sales plan by department (Million yen) (Million yen) Sales of each department Orders of each department ■2023.3 ■2024.3 ■2025.3（plan） ■2023.3 ■2024.3 ■2025.3（plan） 240,000 240,000 214,668 221,000 204,500 213,481 201,381 161,659 159,783 153,104160,000 161,000 154,647 134,156 70,500 50,000 50
Slide 23: Difference between numerical targets of FY2020 Mid-Term Plan and FY2025 Plan
Difference between numerical targets at the time of formulation of the FY2020 Mid-Term Management Plan and the FY2025 Plan (Million yen) Numerical targets at the time of increase The FY2025 formulating the and Note Plan FY2020 Mid-Term decrease Management Plan ・Decrease in sales in FY2024 due to pos
Slide 24: Road map of sales plan
Road map of sales plan (Billion yen) planned value 500 460 429 396 78.0 392 61.9 Renewable energy business 377 67.8 45.8 61.5 54.4 Electrical 195.0 193.9 construction 155.9 149.1 148.4 157.7 HVAC 139.3 148.0 129.9 116.0 126.1 108.9 Power distribution line 46.9 46.6 48.2 50.0 ※ 45.8 45.7 Others 26.7
Slide 25: 4th Year's Summary and Final Initiatives for Medium-Term Management Plan
4th Year’s Summary and Final Initiatives for Medium-Term Management Plan Issues for Final Year Small, Medium Sized Rise in Construction Cost(Labor) Largest-Ever Reorganization Ongoing Productivity Enhancement Construction Pressing Work Efficiency Matters Upper limit Human Capital Staffing Workload R
Slide 26: 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 27: Appendix
Appendix All Rights Reserved. Copyright KYUDENKO CORPORATION 26
Slide 28: 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 29: 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 408,143 428,939 391,901
Slide 30: 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 Works on6,000 hand （Billion yen） Gross profit margin 15.2 14.5 14.6 14.0 13.8 5,000 Total 408.7 Total 415.
Slide 31: 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 （Billion yen） 66.1 FY2020 FY2021 FY2022 FY2023 FY2024 Total Total To
Slide 32: 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 33: 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 34: Actual results of recruitment of human resources
Actual results of recruitment of human resources (Kyudenko individual) and actual number of personnel at the end of the fiscal year ≪ Actual results of periodic recruitment of engineers and ≪ Comparison in actual results of recruitment skilled persons≫ for April 2024 with other companies≫ 2017 2018
Slide 35: 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 36: 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 37: 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 38: 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 39: 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 40: 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 41: 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