Status of Business Progress in
the Medium-Term Management Plan“Century 2025” Phase 2May 13, 2022

FY2021 (final fiscal year)

[Positioning of the Long-Term Vision and Medium-TermManagement Plan]
In the run-up to our 100th anniversary, our Century 2025 long-term vision aims to further improve ourquality and reliability, which will encourage even more stakeholders to choose our company.

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Phase 2 Summary
FY2019targets
Sales

FY2019results

FY2020targets

FY2020results

FY2021targets

FY2021
results200.0 billion yen 207.6 billion yen 200.0 billion yen 190.0 billion yen 200.0 billion yen

193.1 billion yen

Gross profit(margin)30.0 billion yen(15%)

32.1 billion yen(15.5%)

31.0 billion yen(15.5%)

28.7 billion yen(15.1%)

32.0 billion yen(16.0%)

30.2 billion yen(15.6%)

Ordinary (%)
profit

9.0 billion yen(4.5%)

11.2 billion yen(5.4%)

9.5 billion yen(4.8%)

8.1 billion yen(4.3%)

10.0 billion yen(5.0%)

9.8 billion yen(5.1%)FY2019 to FY2021
targets

FY2019results

FY2020results

FY2021results

Operatingprofit ratio

5.0% or more (final fiscal year)

5.4%

4.3%

5.1%

Annualdividend

Per share:
60 yen or more

95 yen80 yen85 yenAcquisition oftreasury stock

Approx. 5 million shares

1,958 thousandshares

1 million shares(total: 2,958 thousandshares)

1 million shares(total: 3,958 thousandshares)

Total returnratio

70% or more

111.4%

97.3%

95.7%

ROE

8.0% or more (final fiscal year)

8.6%

6.6%

7.0%

Note: Targets are all according to the initial plan.

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Orders Received/Net Sales

202,250

193,1894©2022 SANKI ENGINEERING CO., LTD. All Rights Reserved.

Gross Profit/Gross Profit Margin

30,22315.6%

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Status of Measures◆Strengthen Core Businesses● Improve design/construction quality and promote workstyle reforms through cooperation
between branch offices/branches and headquarter organizations
・Strengthen division of labor through the Smile Site Plan
・Establish a company-wide collaboration system to handle large-scale projects
・Enhancement of design review and active rollout to construction processes
・Optimize procurement costs and quality maintenance through gathering information at an early stage● Development and verification of construction management laborsaving technology
・Entrance/exit temperature measurement system
・Remote confirmation system using 360-degree imaging
・Airflow measurement robots
・Construction management support systems● Hold the 20th Conference On Electrical Construction Quality● Roll out new services in the Facility Systems Business

Conference On Electrical
Construction Quality● Develop new products using AGVs (Automated Guided Vehicles) in the Machinery
Systems Business● Receive multiple large-scale orders in the Environmental Systems Business● Construct a BCMS (Business Continuity Management System)

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Status of Measures◆Promote Growth Strategies● Develop environmental test equipment for nextgeneration battery evaluation⇒Achieved high precision and low energy use in a wide
range of temperature conditions● Develop new technologies for distribution centers ingrowth markets
・Commencement of sales of reverse sorters (vertical sortingdevices)⇒Achieved 40% space-saving
・Development of automated sorting systems using transportrobots⇒Sales to commence in FY2022

Transport robots

Environmental testing equipment

Reverse sorter● Overseas business expansion in the water treatment sector
・Received order for energy-saving aeration systems at 2 large water treatment facilities in Denmark⇒Covers all sewerage treatment in Copenhagen and contributes to a large reduction in energy usage
・Acquired a certification of technology verification for global use from the Japan Sewage Works Agency⇒Proceeding toward contributing to the solution of social issues through water treatment in Thailand7©2022 SANKI ENGINEERING CO., LTD. All Rights Reserved.

Status of Measures◆Improve the Sanki brand● Creation of systems for evolution for a new age
・Establishment of the Sustainability Promotion Department at the CSR
Promotion Division (formerly the Sustainability Promotion Division)
・Establishment of the Sustainability Committee, which is chaired by thepresident
・Establishment of the BCMS (Business Continuity Management System)
Promotion Council

Poster calendar● Formulation and disclosure of the SANKI Group Procurement
Policy● Formulation and disclosure of Sanki’s Carbon-Neutral
Declaration● Expressed support for TCFD (Task Force on Climate-related
Financial Disclosures) recommendations

Monthly calendar● Made 21st donation under the SANKI YOU Eco Contribution
Point System● Selection for listing on the Tokyo Stock Exchange's Prime Market● Holding the 3rd Kizuna Tsugaru shamisen concert to pray forreconstruction from the Great East Japan Earthquake● Simultaneously received the division prizes of “gold medal” andthe “executive committees encouragement award” at the national
calendar exhibition

Tsugaru shamisen
concert

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Status of Measures◆Reinforce Information Transmission● As with last year, we continue to advertise on TV, over theinternet, in academic journals, on the street● Published a booklet about Antarctica
Published a booklet “The Antarctic: Why We Go There” that contains
interviews with our Antarctic Research Expedition members.

● Results contributed to by initiatives
・Maintained the number of individual investors, which has
been rising in recent years
・According to a research company, awareness of theCompany has been trending upwards
・The number of new graduate applicants has increased

Sewage Works Exhibition ’21

Booklet on the Antarctic

Advertisement poster

Roadside advertisements

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Status of Measures◆Financial/Capital Policy (stakeholder returns)● Dividends
Interim dividend: 35 yen, FY-end dividend: 50 yen,annual dividend: 85 yen● Share buybacks
Acquired 1 million shares of treasury stock in
FY2021

Total of 3,958 thousand shares acquired in Phase 2● Total return ratio
95.7%

● ROE
7.0%
10
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Status of Measures◆Sanki’s Initiatives from an ESG Perspective
ItemEEnvironment

SSocietyGGovernanceContent[Solution of global environmental issues through business activities]
・Establishment of the Sustainability Committee, which is chaired by the president
・Support for the TCFD (Task Force on Climate-related Financial Disclosures) recommendations
・Calculation of the Group’s greenhouse gas emissions (calculation of scope 1, scope 2, and scope 3
completed)・Sanki’s Carbon-Neutral Declaration
・Continuation of Sanki’s unique SANKI YOU Eco Contribution Point System[Actively conducting workstyle reforms, improving communication, and supporting cultureand sport]
・Commencement of operation of the Sanki Group Procurement Policy with an awareness of CSR
procurement・Work to revise the Code of Conduct and Action Guidelines (human rights and biodiversity)
・Continuation of the company’s unique workstyle reform, Smile Project・Holding the first Diversity CCU*
* CCU = Century Communication Up – an opportunity for managers and employees to exchange
opinions[Ongoing initiatives based on the Sanki Engineering Corporate Governance Guidelines]
・Response to the June 2021 revision of the Corporate Governance Code・Achievement of the stricter governance level required by the Tokyo Stock Exchange's Prime Market
・Meeting of the Board of Directors concerning corporate governance・Improvement of efficacy based on ongoing evaluation of the effectiveness of the Board of Directors

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Statements about the future, such as results forecasts included in thesematerials, are based on judgments made according to the information
available to the Company as of May 13. Actual results may differ from thefigures contained herein due to a number of factors.
For inquiries, please contact:
Corporate Communications Department,
SANKI ENGINEERING CO., LTD.
Tel: +81-3-6367-7041

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