Slide 1: FY ending March 2023 2nd Quarter Results briefing
1st section of Tokyo stock exchange : 1959 KYUDENKO CORPORATION FY ending March 2023 2nd Quarter Results briefing Nov. 9 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 19 Highlights 3 Plan for fiscal year 20 P/L 4 Orders/sales by department 21 Factors of change in OP 5･6 Key measures for the third year (FY2022) 22 Sales, Orders and Works on hand Trend of dividends 23 1. Orders received/sales by
Slide 3: Overview of business results
Overview of business results All Rights Reserved. Copyright KYUDENKO CORPORATION 2
Slide 4: Highlights
High lights Orders ¥267,323 million 2nd-on-2nd 148.3% Sales ¥168,522 million 2nd-on-2nd 106.5% Operating profit ¥10,315 million 2nd-on-2nd 88.5% All Rights Reserved. Copyright KYUDENKO CORPORATION 3
Slide 5: Outline of P/L March 2023, 2nd quarter
Outline of P/L March 2023, 2nd quarter (Million yen) March 2022, March 2023, 2Q Increase 2Q Result Result 2nd-on-2nd /decrease Sales 158,194 168,522 ＋10,328 106.5% (100.0%) (100.0%) Gross profit 23,546 23,417 ▲129 99.4％ (14.9%) (13.9%) Operating profit 11,658 10,315 ▲1,342 88.5％ (7.4%) (6.1%) Ordina
Slide 6: Factors of change in OP
Factors of change in OP 15 （Billion Yen） :Increase :Decrease B Increase in sales ▲0.8 ＋1.1 Ｄ Ｅ A ▲2.5 Power distribution Other business 10 Increase in line work +0.7 11.6 fixed costs +0.2 Ｃ Operating profit in Decrease in profit margin 10.3 March, 2022 2Q end Operating profit in March, 2023 2Q end 5
Slide 7: Breakdown of construction sales and factor of gross profit ratio
Breakdown of construction sales and Factor of gross profit ratio Sep.2022 (Kyudenko individual : excluding power distribution line work) Average profit ratio 25.5 26.7 25.6 25.8 26.0 25.5 24.7 200,000 22.5 18.7 18.8 17.5 Construction sales (Million yen) 16.3 150,000 15.8 14.6 Total 120,951 Total 142
Slide 8: Order received / Sales by department
Order received / Sales by department Sep. 2022 (Million Yen) (Million Yen) Sales of each department Orders of each department ■2020.9 ■2020.9 120,000 130,028 ■2021.9 ■2021.9 ■2022.9 ■2022.9 120,000 99,703 84,581 64,885 62,967 62,512 73,260 56,388 55,865 66,052 58,414 48,972 22,588 30,181 20,688 21,1
Slide 9: Order received / Sales by customer
Order received / Sales by customer Sep. 2022 (Million Yen) (Million Yen) Sales of each customer Orders of each customer ■2020.9 ■2020.9 231,720 180,000 ■2021.9 ■2021.9 ■2022.9 ■2022.9 145,917 131,674 180,000 123,725 141,822 130,202 22,247 21,138 22,761 16,642 21,009 21,806 8,373 21,704 15,150 13,898
Slide 10: Order received / Sales by region
Order received / Sales by region Sep. 2022 (Electrical & HVAC work excluding Solar plant construction work) (Million yen) (Million yen) Sales of each region Orders of each region ■2020.9 ■2021.9 ■2022.9 ■2020.9 ■2021.9 ■2022.9 130,000 165,776 130,000 81,710 78,043 77,512 105,047 86,558 31,399 41,486
Slide 11: Order received / Sales by region (solar plant construction)
Order received / Sales by region Sep. 2022 (Solar plant construction work) (Million yen) (Million yen) Sales of each region Orders of each region ■2020.9 ■2021.9 ■2022.9 ■2020.9 ■2021.9 ■2022.9 14,028 10,396 10,401 10,581 9,850 10,093 6,770 7,204 5,752 6,099 4,818 4,625 3,519 1,596 1,592 199 509 446
Slide 12: Situation of works on hand
Situation of works on hand Sep. 2022 (Million yen) New orders in FY ended Sep. 2022 Order stock of each department ■2020.9 ■2021.9 ■2022.9 197,976 179,052 168,221 Image 170,000 164,531 166,209 127,513 130,246 125,934 115,814 1,979 1,859 1,751 0 Power Electrical work HVAC work Solar plant distributio
Slide 13: Outline of balance sheet
Outline of balance sheet (Million Yen, composition ratio) End of Mar. End of Sep. Increase Main factors behind 2022 2022 /decrease increase/decrease Trade notes and accounts receivable 216,979 207,484 ▲27,871 Current assets ▲9,494 Costs of uncompleted construction (57.3%) (55.5%) contracts +6,507 Ca
Slide 14: Outline of C/F
Outline of C/F (Million Yen) Details of statement to Sep. 2021 Sep. 2022 Sep. 2022 Profit before income taxes ＋16,299 Decrease in notes and accounts receivable on completed construction contracts Cash flow from operating activities 9,510 7,576 +28,345 Decrease in notes and accounts payable on constr
Slide 15: Capital Investment
Capital Investment End of Mar. 2022 End of Sep. 2022 Capital investment 4.4 billion yen 1.4 billion yen 4.3 billion yen 1.2 billion yen Replacement of branches , Replacement of branches and business offices and sanatorium business offices of Kyudenko of Kyudenko Facility work Machinery and equipment
Slide 16: 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 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 entire operation to other (acquire investment securities and record an amount equal to the equity to non- operations sales) operating revenues) Depre
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 Fukui Miyagi Fukushima operations sales) Depreciated at the Mainly declining balance method Generation capacity Generation capacity Number of
Slide 19: Investment in Power Operations
Investment in Power Operations Mar.2023 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 1,119 1,097 1,087 (Million yen) 971 906 Total
Slide 20: Plan for fiscal year
Plan for fiscal year All Rights Reserved. Copyright KYUDENKO CORPORATION 19
Slide 21: Plan for March 2023
Plan for March 2023 (Million yen) March 2022 Plan for March 2023 Result March 2023 Year-on-Year 2Q Result Progress 376,563 460,000 122.2％ 168,522 36.6% Sales (100.0%) (100.0%) (100.0%) 57,361 63,000 109.8% 23,417 37.2% Gross profit (15.2%) (13.7%) (13.9%) 33,137 34,500 104.1% 10,315 29.9% Operating
Slide 22: 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 23: 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 24: 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 25: Mid-term management plan
Mid-term management plan (Published on April 28,2020.) All Rights Reserved. Copyright KYUDENKO CORPORATION 24
Slide 26: New mid-term management plan (2020-2024)
New mid-term management plan(2020～2024） 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 wor
Slide 27: 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 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 1Ｑ results Sales 360,872 408,143 428,939 391,901
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) Average profit ratio 150,000 28.8 27.1 25.8 25.3 Construction sales （Million yen） 100,000 15.4 15.3 Total 72,944 Project Not delivered （Percentage
Slide 32: Analysis of works on hand
Analysis of works on hand （Kyudenko individual : excluding power distribution work） Third quarter opening construction works on hand by delivery schedule timing Works on hand （Billion yen） 500.0 Total 466.1 Total 402.5 Total 383.4 121.1 400.0 Total 359.9 (▲80.1) Deliver on after next FY Total 316.8
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) 50,090 51,626 52,713 53,114 45,850 43,678 2017.9 2017.2Q 2018.2Q 2019.2Q 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 2022 with other companies≫ 2007～ 2016 2017 2018 2019 2020 2021 2022 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: 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 37: Development of new business areas: Kyudenko EMS
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 38: 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 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: 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 43: 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