Slide 1: KYUDENKO CORPORATION FY ending March 2023 Results briefing
Prime Market of Tokyo stock exchange : 1959 KYUDENKO CORPORATION FY ending March 2023 Results briefing May 18 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 19 Highlights 3 Plan for fiscal year 20・21 P/L 4 Trend of dividends 22 Factors of change in OP 5～7 Mid-term management plan ・growth strategy 23 Sales, Orders and Works on hand Numerical targets 24 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 ¥440,507 million Year-on-year 117.3% Sales ¥395,783 million Year-on-year 105.1% Operating profit ¥32,083 million Year-on-year 96.8% All Rights Reserved. Copyright KYUDENKO CORPORATION 3
Slide 5: Outline of P/L March 2023
Outline of P/L March 2023 (Million yen) March 2022 March 2023 Year-on- Result Result year Plan (2023.1.31) Progress Sales 376,563 395,783 105.1% 400,000 98.9% (100.0%) (100.0%) (100.0%) Gross profit 57,361 57,889 100.9% 59,000 98.1% (15.2%) (14.6%) (14.8%) Operating profit 33,137 32,083 96.8% 32,500
Slide 6: Factors of change in OP March 2023
Factors of change in OP March 2023 （billion yen） 36 A :Increase Increase in :Decrease sales +1.9 D 34 Other business ▲2.7 C Power distribution ＋0.8 line work ▲1.6 +0.5 32 B E 33.1 Decrease in Profit margin Increase in SG&A expenses Operating 32.0 profit in Operating March,2022 profit in 30 March,202
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 25.5 26.0 25.6 25.1 24.9 500,000 22.4 19.1 19.5 17.9 400,000 Construction sales 17.8 18.0 16.5 （Million yen） Total 315,566 15.7 15.0 Total 305,015 14.9 Projec
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 28.8 150,000 27.1 25.9 24.5 25.8 25.3 21.4Construction sales Total 106,386（Million yen） 17.1 100,000 15.4 15.3 15.7 44% 47,09
Slide 9: Order received / Sales by department March 2023
Order received / Sales by department March 2023 (Million yen) (Million yen) Sales of each department Orders of each department ■2021.3 ■2021.3 214,668 ■2022.3 ■2022.3 ■2023.3 ■2023.3 159,783 153,773 152,495 155,087 154,647 134,156 142,575 123,199 131,872 118,699 119,511 48,409 46,628 54,564 45,654 4
Slide 10: Order received / Sales by customer March 2023
Order received / Sales by customer March 2023 (Million yen) (Million yen) Sales of each customer Orders of each customer ■2021.3 ■2021.3 ■2022.3 ■2022.3 ■2023.3 ■2023.3 358,746 307,216 304,577 300,437 290,213 246,431 46,743 46,428 47,509 47,255 45,497 29,034 45,593 33,133 34,504 24,617 27,798 27,526
Slide 11: Order received / Sales by region March 2023
Order received / Sales by region March 2023 (Electrical & HVAC work excluding Solar plant construction work) (Million yen) (Million yen) Sales of each region Orders of each region ■2021.3 ■2022.3 ■2023.3 ■2021.3 ■2022.3 ■2023.3 257,048 200,263 199,689 189,138 186,123 174,679 75,432 78,119 64,742 70,
Slide 12: Order received / Sales by region March 2023 (Solar plant construction)
Order received / Sales by region March 2023 (Solar plant construction work) (Million yen) (Million yen) Sales of each region Orders of each region ■2021.3 ■2022.3 ■2023.3 ■2021.3 ■2022.3 ■2023.3 32,542 25,396 24,018 20,362 18,142 18,764 14,829 12,403 12,585 9,532 9,480 6,433 7,787 7,481 660 2,960 79
Slide 13: Year-end amount of works on hand
Year-end amount of works on hand (Million yen) New orders in FY ended March 2023 Order stock of each department ■2021.3 ■2022.3 ■2023.3 178,207 174,417 166,875 156,189 141,706 110,767 121,216 107,940 108,765 Image 3,029 1,375 Image Image 1,247 Power Electrical work HVAC work Solar plant distribution
Slide 14: Actual results of works FY March 2023
Actual results of works FY March 2023 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 ■Solar Power Plants ■Wind Power Plants 1,748 1,734 (Million yen) 1,449 1,556 1,144 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 2022 2023 /decrease increase/decrease 216,979 278,220 Cash on hand and in banks+28,512 Current assets 61,241 Trade notes and accounts receivable +12,226 (57.3%) (62.3%) Raw materials and su
Slide 18: Outline of C/F
Outline of C/F (Million yen) Details of statement to Mar.2022 Mar.2022 Mar. 2023 Profit before income taxes＋38,793 Decrease in costs of uncompleted Cash flow from operating activities 5,252 17,386 construction contracts +15,076 Income taxes paid ▲12,474 Payments into time deposits ▲3,738 Purchase of
Slide 19: Capital Investment
Capital Investment FY2022 Mar. FY2023 Mar. Capital investment 4.4 billion yen 3.4 billion yen 4.3 billion yen 3.0 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 2024
Plan for March 2024 (Million yen) March 2023 Plan for March 2024 Result March 2024 Year-on-Year 395,783 460,000 116.2％ Sales (100.0%) (100.0%) 57,889 64,500 111.4% Gross profit (14.6%) (14.0%) 32,083 35,500 110.7% Operating profit (8.1%) (7.7%) 35,462 38,000 107.2% Ordinary profit (9.0%) (8.3%) 26,3
Slide 22: 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 23: Trend of dividends
Trend of dividends ・The year-end dividend for the fiscal year ending March 31, 2023, is resolved at 60 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, 2024 is planned to be 110 yen per share. Dividend Policy
Slide 24: Mid-term management plan
Mid-term management plan (Published on April 28,2020.) All Rights Reserved. Copyright KYUDENKO CORPORATION 23
Slide 25: 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 26: 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 27: Summary of the Third year (FY2022)
Summary of the Third year (FY2022) Theme for FY2022『 Practice business reforms to adapt the environmental changes 』 Implement Business・ Developed internal digital infrastructure Most Important Initiatives Reforms (All employees were provided with smartphones and mobile PCs.) ・ Discussed specific ini
Slide 28: 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 29: 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 30: Appendix
Appendix All Rights Reserved. Copyright KYUDENKO CORPORATION 29
Slide 31: 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 32: 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 360,872 408,143 428,939
Slide 33: 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 14.0 5,000 Total 415.2 Total 426.
Slide 34: 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 FY2019 FY2020 FY2021 FY2022 FY2023 （Billion yen） Total Total Total T
Slide 35: 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 36: 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 37: 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 38: 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 39: 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 40: 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 41: 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 42: 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 43: 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 44: 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 45: 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