We consistently step up to address social challenges
and provide a variety of solutions.
Kazuaki Iijima
Director, Managing Executive Officer and General Manager,Plants & Machinery Systems Headquarters

Growth Strategies and Sustainability Management

The Plants & Machinery Systems Business supports social infrastructure in the two businessdomains of machinery systems and environmental systems. The Machinery Systems
Business applies material handling technologies to meet automation and labor-saving
needs and updates these technologies with new advances in AI, IoT, and robotics. The
Environmental Systems Business contributes to reducing the environmental load andrealizing carbon neutrality by developing energy conservation and energy creation
technologies in the construction and operation of water treatment and waste treatment
facilities. Sanki Engineering will continue to step up to address social challenges andprovide our own unique solutions to consistently achieve sustainable growth.

Plants & Machinery Systems Business

Machinery
SystemsBusiness• Growing need for automation and labor-saving solutions arising from thedecline in Japan’s working population• Increased investment in logistics facilities and manufacturing facilities forbatteries and semiconductors• Increase in materials and labor costs, and delayed delivery of materials andequipment

Environmental
SystemsBusiness• Expansion in decarbonization needs• Japanese government policy for promoting PPPs and PFIs*• Expansion in energy conservation needs at overseas water treatment plants

Plants & Machinery Systems Business

Opportunities andRisks in the Business
Environment*A public private partnership is a public-private sector collaboration to provide public services, while a
private finance initiative is a representative PPP approach.

Key Initiatives ofthe Medium-TermManagement Plan“Century 2025” Phase 3Machinery
Systems
Business

Key Initiative 1 Increase orders for standard conveyors
Key Initiative 2 Accelerate entry into the automation and labor-saving market andlogistics market

Key Initiative 3 Establish a network of maintenance and servicing businesses

Environmental
Systems
Business

Key Initiative 1 Promote the energy conservation and energy creation businesses
Key Initiative 2 Expand the LCE business
Key Initiative 3 Expand business in overseas markets

KPIs for Medium-Term
Management Plan“Century 2025” Phase 3Machinery
Systems
Business
Environmental
Systems
Business

Targets (Total for FY2022–2025)

FY2022 Results

Evaluation

Net sales of robot systems

5.0 billion yen

550 million yen◯Orders AEROWING
G3 decanter
centrifuge
Fluidized bedincinerator

3.6 billion yen

800 million yen◎

20 units

1 unit△2 units

0 units△

SANKI REPORT 2023

39

︱Growth Strategies and Sustainability Management ︱Plants & Machinery Systems Business

Plants & Machinery Systems Business

Net Sales
Composition Ratio

17%

31.5

Orders
Received(Billions of Yen)

33.7 34.5
12.0

10.3

8.9
7.8

32.8

24.2

11.6

28.7billion yen

2018

2019

35.0

31.5

Net Sales forFiscal 2022
21.7

2020

(Billions of Yen)billion yen

39.5

36.5

32.8

Net Sales

19.9

30.6

32.2

34.4

32.5

35.5

11.7

11.1

8.9

23.0

20.4

23.2

23.5

Forecast

2018

2019

2020

38.0

32.8

9.6

12.0

2021 2022 2023 (FY)

Machinery Systems Businessbillion yen

7.6

25.8

2021

25.2

12.0

26.0

2022 2023 (FY)Forecast

Environmental Systems Business

Machinery Systems Business
Major Results for Fiscal 2022 While orders received increased due to large construction
projects, profit declined as a result of a decrease in work
carried over from the previous fiscal year and fewer
construction projects for large conveyance facilities.
⃝ 
Introduced a web-based product training system for sales
personnel to increase orders for standard conveyors.
⃝ Completed commercialization of the Reverse Sorter®,a vertical conveyer and sorting system for the logistics
market, and Meris Bianca®, a robotic sorting system, andexhibited both products at the Logis-Tech Tokyo 2022
international exhibition.
⃝ 
Sales remained steady for automation and labor-saving
systems using robots. We also achieved progress in sales
collaboration with robot manufacturers.
⃝Arita Manufacturing

Major Projects
Facility for Arita Manufacturing (delivered in March 2023)
Facility for Narita Airport’s Terminal 1 (delivered in June 2022)

Status of Business Operations and Future Outlook toward Achieving Phase 3
Expand Sales of Core Products
We will continue to conduct our ongoing business activities
with a focus on expanding sales of our core products,
such as standard conveyors, various conveyance systems
for logistics facilities, factory automation, airports, andmedical facilities. At the same time, we will expand ourproduct line to meet growing automation needs in the foodindustry and medical facilities. In addition, we will strive tostrengthen our product value by proposing equipment thatwill save energy and improve transportation efficiency aswell as by providing added value such as facility predictive

40

SANKI REPORT 2023

maintenance systems.
Enter the Automobile, Semiconductor, and Overseas
Markets
We plan to enter growth areas such as manufacturing
facilities for EVs and semiconductors, where significant
demand is expected, as well as overseas markets, byleveraging the technical skills and flexible response
capabilities that we have cultivated over the years. As
part of this effort, we established a clean room at theYamato Product Center for developing and manufacturing

Promote Business Reform
We will implement business reform for reinforcing thefoundations for ensuring continuity and supporting

growth areas. We will collaboratively promote DX with
the DX Promotion Division and the Technical Research &Development Center. These efforts include the effective
use of 3D-CAD, introduction of emulators, creation of adatabase of design results, and research on applying thelatest technologies such as AI, drones, and 5G to improve
operational efficiency and increase productivity.

Environmental Systems Business
Major Results for Fiscal 2022 Orders received decreased due to the absence of a large
maintenance and management contract and an order fora waste treatment facility obtained in the previous fiscal
year. Although net sales decreased, profit increased dueto the improved profitability of construction work.
⃝ 
Enjoyed strong global sales, as exemplified by major
orders placed by large-scale sewage treatment plants in
Denmark and Australia for AEROWING, an energy-saving
ultrafine bubble air diffuser.
⃝ Participated in the Ministry of the Environment’s
FY2022 Demonstration Project for the Effectiveness ofDecarbonized Resource Recycling Businesses Utilizing
Digital Technology.
⃝ Sanki’s technology for low-cost technology for converting
sewage sludge incineration ash into fertilizer was adopted
for a feasibility study for the FY2022 Breakthrough by
Dynamic Approach in Sewage High Technology Project ofthe Ministry of Land, Infrastructure, Transport and Tourism.
⃝ Introduced an AI waste crane system, which automatescrane operations at waste incineration facilities, to Clean
Hill Tenzan.
⃝Growth Strategies and Sustainability Managementequipment that requires high cleanliness environments.
Additionally, we will continue to analyze the market to formbusiness alliances and partnerships with external entities forfuture business expansion.

Plants & Machinery Systems Business

New incinerator at SU Kaihatsu

Major Projects
Kasai Water Reclamation Center’s northern system reactor facility
Kanazawa Wastewater Treatment Plant’s No. 6 system reaction
tank and blower facilities
Construction work for the new combustible waste joint
processing facility at the Ochi Clean Center
Construction work for the new incinerator at SU Kaihatsu

Status of Business Operations and Future Outlook toward Achieving Phase 3
Expand Sales of Products that Meet Energy
Conservation Needs
Given the continued demand for renewing infrastructure
facilities in response to changing social and environmental
trends, such as a declining population, there is a growing
need for energy conservation for achieving carbon
neutrality. We will strive to expand sales of strategic
products, such as the energy-saving AEROWING ultrafine
bubble air diffuser, the highly efficient G3 decanter
centrifuge, and the fluidized bed incinerator.

Promote LCE Business to Secure Stable Long-TermBusinessChanging global circumstances have given rise to the needto consider risks and price fluctuations when handling
projects. For example, the recent sharp rise in prices hascreated a challenge for securing the business feasibilityof woody biomass gasification power generation, which
we have been pursuing as an energy creation business.
In addition, we will strive to ensure the stable operationof projects for which we already undertake maintenanceand management operations, while striving to win orders

SANKI REPORT 2023

41

︱Growth Strategies and Sustainability Management ︱for DBO projects to expand our business and accumulate
operational expertise for the future.

Focus

Develop Overseas Markets for Water Treatment Facilities
Our efforts to develop overseas markets for water treatment
facilities are being led by AQUACONSULT Anlagenbau
GmbH, a Group company based in Austria that has been
enjoying robust sales in recent years, as we strive to expand

Plants & Machinery Systems Businesssales of strategic products mainly in Europe and the Middle
East. Meanwhile, in Southeast Asia, where large-scale water
treatment facilities are not widely available, we will continueto promote our proprietary technologies, such as a drainage
treatment unit based on the DHS method, while exhibiting
at local trade shows and developing local networks toincrease business opportunities.

Machinery Systems BusinessContributing to improve efficiency and reduce labor in loading operations and save space at work sites

Delivery of Conveyor Line to an Apparel E-Commerce Company
In March 2023, we delivered a 320-meter long conveyor line to an e-commerce company handling women’s apparel, which
has increased its sales fivefold over the past five years. Previously, the entire process, from item picking to packing andshipping, had been managed by hand. The new conveyor line automates the supply of shipping boxes and the sorting ofboxes from the packing area to each delivery company, thereby improving efficiency and saving labor in loading operations.
The new system also saves spaceby virtue of its two-tier configuration
with the shipping box supply line on
the upper level and the sorting line todelivery companies on the lower level.
We are also scheduled to deliver
our newly developed Reverse sorterto the center in August 2023, with theexpectation that it will further improve
work efficiency and labor savings.

Focus

Conveyor line with a total length of 320 meters

Environmental Systems BusinessRealized Automated Crane Operation for Efficient and Stable Operational Managements

Introduction of an AI Waste Crane System at Clean Hill Tenzan
To address the shortage of workers and reduce operational management costs at waste incineration facilities, we developed
the AI Waste Crane System to automate crane operation at waste incineration facilities.
Crane operation of waste requires workers with ahigh level of experience to determine the type and levelof waste in the bunker. The system ensures efficientand stable operation by optimizing crane operation
with AI that visualizes the inside of the waste bunker todetermine the type and height of waste. Compared tonight-time manual crane operations, this significantly
reduces the workload, reducing labor by approximately
60%.
The system was installed and has been reliably
operating at Clean Hill Tenzan, located in Taku City, SagaPrefecture, under the operational management of Group
company Sanki Chemical Engineering & Construction in
Automated operationa DBO project.

42SANKI REPORT 2023