Slide 1: KYUDENKO CORPORATION FY ending March 2021 Results briefing
1st section of Tokyo stock exchange : 1959 KYUDENKO CORPORATION FY ending March 2021 Results briefing May 12 th ,2021 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 Summary of the first year (FY2020) 26・27 1. Orders rec
Slide 3: Overview of business results
Overview of business results All Rights Reserved. Copyright KYUDENKO CORPORATION 2
Slide 4: Highlights
High lights Orders ・The decrease was due to the postponement of orders for several ¥325,158million projects due to the spread of the COVID-19 infection, in addition to the reactive decline from the super-large solar power projects Year-on-year 64.1％ ordered in the previous fiscal year. Sales ・The de
Slide 5: Outline of P/L March 2021
Outline of P/L March 2021 (Million yen) March 2020 March 2021 Year-on- Result Result year Plan (2020.7.31) Progress Sales 428,939 391,901 91.4％ 413,000 94.9％ (100.0%) (100.0%) (100.0%) Gross profit 60,093 56,631 94.2％ 56,400 100.4％ (14.0%) (14.5%) (13.7%) Operating profit 36,022 32,998 91.6％ 32,000
Slide 6: Factors of change in OP March 2021
Factors of change in OP March 2021 （billion yen） 38 :Increase A :Decrease ・Bonus decrease ・Increase of other fixed cost (overhead cost) in SG&A C Gross Cost Decrease in 36 ▲0.1 ▲0.1 sales B Power distribution line work E 34 ▲4.0 Improvement in profit margin(Except D) 36.0 ▲0.5 Operating F profit in
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 26.0 24.2 25.5 23.4 24.9 500,000 21.8 21.8 19.1 Construction sales（Million yen） 18.3 400,000 17.7 18.0 17.8 17.9 14.9 15.7 Total 305,015 Total 289,434 300,000
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 28.3 150,000 26.2 25.5 26.6 25.3 22.7 15.4 16.2 16.0 17.5 Construction sales （Million yen） 15.6 100,000 14.8 Total 90,772 Tot
Slide 9: Order received / Sales by department March 2021
Order received / Sales by department March 2021 Net sales decreased due to fewer large-scale projects coming to completion compared to the previous fiscal year. Orders received decreased due to a reactionary decline in orders received in the previous fiscal year for very large solar panels and postp
Slide 10: Order received / Sales by customer March 2021
Order received / Sales by customer March 2021 Sales of government works decreased due to a decrease in the number of works on hand at the beginning of the period, but orders received are on a recovery trend. In general private-sector construction, both sales and orders decreased. (Million yen) (Mill
Slide 11: Order received / Sales by region March 2021
Order received / Sales by region March 2021 (Electrical & HVAC work excluding Solar plant construction work) Net sales decreased in all regions due to fewer large-scale projects coming to completion compared to the previous fiscal year. Orders received decreased, especially in Kyushu, due to the pos
Slide 12: Order received / Sales by region (Solar plant construction)
Order received / Sales by region March 2021 (Solar plant construction work) Sales progressed steadily with the exception of some large projects. Orders received decreased due to a reactionary decline from the previous fiscal year. (Million yen) (Million yen) Sales of each region Orders of each regio
Slide 13: Year-end amount of works on hand
Year-end amount of works on hand Sales of electrical and HVAC work decreased due to postponement of orders due to infectious diseases. Despite a decrease in solar plant work, the company has a wealth of work in hand. (Million yen) New orders in FY ended March 2021 Order stock of each department ■201
Slide 14: Actual results of works FY March 2021
Actual results of works FY March 2021 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 2020 2021 /decrease increase/decrease Raw materials and supplies +13,433 216,269 212,574 Current assets ▲3,695 Trade notes and accounts receivable (58.7%) (58.0%) ▲9,041 152,212 153,957 Inv
Slide 16: Outline of C/F
Outline of C/F (Million yen) Details of statement to Mar.2020 Mar.2021 Mar. 2021 Income before income taxes and minority interests ▲1,639 Cash flow from operating activities 38,222 9,184 Decrease in costs of uncompleted construction contracts ▲18,722 Increase in inventories ▲13,035 Cash flow from in
Slide 17: Capital Investment
Capital Investment FY2020 Mar. FY2021 Mar. Capital investment 4.1 billion yen 3.6 billion yen 3.9 billion yen 3.3 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 (Million yen) (Non-operating income) ■Solar Power Plants ■Wind Power Plants ■ Operating profit 1,748 1,556 ■Solar Power Plants ■Wind Power Plants 1,449 (Million yen) 1,144 962 Total 5,089 Total 4,878 616 Total
Slide 22: Plan for fiscal year
Plan for fiscal year All Rights Reserved. Copyright KYUDENKO CORPORATION 21
Slide 23: Plan for March 2022
Plan for March 2022 (Million yen) March 2021 Plan for March 2022 Result March 2022 Year-on-Year 391,901 410,000 104.6％ Sales (100.0%) (100.0%) 56,631 60,000 105.9% Gross profit (14.5%) (14.6%) 32,998 35,000 106.1% Operating profit (8.4%) (8.5%) 35,906 37,700 105.0% Ordinary profit (9.2%) (9.2%) 25,0
Slide 24: Orders & Sales plan by department
Orders & Sales plan by department (Million yen) (Million yen) Sales of each department Orders of each department ■2020.3 ■2021.3 ■2022.3（plan） ■2020.3 ■2021.3 ■2022.3（plan） 240,000 240,000 180,000 176,545 165,000 166,344 156,104 153,773 134,955 132,000 142,575 126,801 137,000 123,199 118,699 59,306
Slide 25: Trend of dividends
Trend of dividends For the fiscal year ending March 31, 2022, we plan to pay an annual dividend of 100 yen per share. 130 Dividend policy With 120 regard to distribution of profits, we seek to keep appropriate financial strength and appropriately return profits to shareholders with strengthening man
Slide 26: Mid-term management plan
Mid-term management plan (Published on April 28,2020.) • With the spread of the COVID-19 infection on a global scale, the risk of an economic downturn is increasing. At this time, it is difficult to estimate the impact on the Group's business performance in terms of scale and duration, so this mediu
Slide 27: Summary of the First Year (FY2020): Environmental Changes
Summary of the First Year (FY2020) 【Environmental Changes】 ■ Unexpected environmental changes (spread of COVID-19) ・The expansion of COVID-19 has had various effects on our business activities. ・In particular, the drop in orders was serious, and we recognized the need to take immediate measures to s
Slide 28: Summary of the First Year (FY2020): Key measures
Summary of the First Year (FY2020) 【Key measures】 The recruitment of human resources is proceeding almost as planned. In terms of human resource development, we are currently considering the establishment of an education system. We believe that it is necessary to establish an education system as soo
Slide 29: Key measures for the second year (FY2021)
Key measures for the second year (FY2021) Matters to be focused on[Excerpt] Theme for FY2021 Strengthen and expand the order base •Secure orders and construction of large-scale projects 『Application to environmental in Japan changes and realization of recovery』 •Expansion of small and medium-sized p
Slide 30: New mid-term management plan (2020-2024) numerical target
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 31: New mid-term management plan: three reforms
New mid-term management plan(2020～2024） Establish a management foundation for sustainable growth ～Realization of the three reforms～ Strong and muscular corporate structure Three reform construction capability productivity governance Issues continuing from the previous mid-term management plan Deepen
Slide 32: Road map of sales plan
Road map of sales plan Goals for the (Billion yen) final year 500 429 81.0 410 Solar plant 392 construction(17.0） Renewable energy business Solar plant 67.8 construction (59.3） 61.5 Solar plant construction (54.5） Electrical 191.0 construction 149.1 157.7 HVAC 143.0 129.9 116.0 Power distribution li
Slide 33: 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 2021 with other companies≫ 2007～ 2015 2016 2017 2018 2019 2020 2021 Large e
Slide 34: Appendix
Appendix All Rights Reserved. Copyright KYUDENKO CORPORATION 33
Slide 35: Corporate profile
Corporate profile Company name Kyudenko Corporation Established December 1, 1944 Capital ￥12,561 million Listed market 1st Section 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, Tos
Slide 36: 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 37: 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 38: 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 39: 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 40: 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
Slide 41: Post-2020 Prediction about industry
Post-2020 Prediction about industry Construction demand will be supported by large-scale projects and renovation of aging infrastructure built more than 50 years ago. The labor shortage will accelerate with the decline in the working age population, with a rapid falloff in supply capability. Real co
Slide 42: Promotion of DX
Digital Transformation ・The DX Promotion Department was established to strengthen the Group's DX promotion structure. (October 1, 2020) ・Initiate the development of new technologies such as IT and IoT to improve productivity. ・Create new innovations across the business. Promotion of DX Transforming
Slide 43: Digital Transformation directionality
Digital Transformation ～directionality～ Introduce advanced technologies such as AI and IoT to increase the sophistication, labor savings, and efficiency of work, education, and training related to design and construction management, etc., and to create new businesses and business models that utilize
Slide 44: Energy Service Business
Energy Service Business ・Established an independent and exclusive subsidiary to develop the ES business, which is set out in the Medium-Term Management Plan. Overview of the new company and ES business scheme Capital 5 million yen Investor Kyudenko Establishment July 2020. Start of business August 1
Slide 45: Energy Service Business directionality
Energy Service Business ～directionality～ We will expand our business beyond the construction of electricity, water, communications and other infrastructure for daily life to include the development of smart cities and other comfortable urban areas and the provision of local public services, and we w
Slide 46: 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 Works on hand Gross profit ratio for each year （Billion yen） Total 415.2 Total 14.8％ 14.5％ 363.6 14.0％ 14.6％ Total Total 302.1 315.0 227.9
Slide 47: 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 （Billion yen） Total Total Total Total 10
Slide 48: Analysis by scale of order
Analysis by scale of order (Kyudenko individual : excluding power distribution work） (Million yen) ■2019.3 ■2020.3 ■2021.3 93,208 82,570 83,574 49,223 39,223 37,808 100～300 million yen Under 100 million yen All Rights Reserved. Copyright KYUDENKO CORPORATION 47