FY2016
Results Highlights
May 12, 2017
Sanki Engineering Co., Ltd.

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Summary of Financial Results(Compared to Plan)
FY2016 was the first fiscal year of the Medium-Term Management Plan,“Century 2025” Phase 1(Millions of yen)
Indicator

Value in plan (A)(Planned value forPhase 1)Results (B)Differential(B-A)

Net sales

185,000

168,500(16,500)

Gross profit(margin)

22,00022,500(500)（11.9%）（13.4%）（+1.5pt）

6,500

6,000(500)（3.5%）（3.6%）（+0.1pt）

7,000

6,800(200)(3.8%)(4.1%)(+0.3pt)

Operating income(margin)
Ordinary income(margin)

Profit margin exceeds the plan across the board2Summary○Results remained at a high level, in spite ofa fall in income and profit year on year

○Profitability increased. Gross profit margin was thehighest in the last 10 years⇒Results seen from the goal of “enhancing quality” in “Century 2025” Phase 1○Growth of Group companies was steady○Man power was maintained due to the focus on
recruitment activities○Regular dividend + Extra dividend3

Results remained at a high level, in spite ofa fall in income and profit year on year(Units: Fiscalyear/million yen)Previous average level

Net sales
200,000
180,000
160,000
140,000
120,000
100,000
80,00060,00040,00020,0000

171,496
147,994

179,598

178,901

168,512

154,658

Maintaining a high level5-year average

Ordinary income
9,000
8,000

8,135

5-year average

6,880

7,000
2011

2012
Net sales

2013

2014

2015

2011～2015 average

2016

6,000

5,000

3,809

4,000
3,000

2,268

2,680

3,146

2,000
1,0000
2011

2012

2013

Ordinary income

2014

2015

2016

2011～2015 average

Strategy of “enhancing quality” without focusing on scale4Gross profit margin was thehighest in the last 10 years(Units: Fiscal year／%)

Changes in gross profit margin
161412.8

1213.4

12.9

12.8

12.3
11.4

10.9

10.7
10.0

108

Increased
profitability

10-year average

63.9
42

1.80
2006

2007

2008

2009

2010
Gross profit margin

2011

2012

2013

2014

2015

2016

2006～2015 average

5Individual Items(Values to the left are from FY2015 and values to theright are from FY2016)○Growth of Group companies was steady
Increased
performance(Transactions outside the group)

Net sales 16.5 billion yen ⇒ 17.8 billion yen
Gross profit margin 3.3 billion yen ⇒ 3.6 billion yen*The above values are consolidated results with individual results deducted, which indicates theperformance of group companies.

○Man power was maintained due to the focus on
recruitment activities
Consolidated
employees

2,309 ⇒ 2,339○Regular dividend + Extra dividend
Regular dividend
Extra dividend
Total

18 yen ⇒ 20 yen
10 yen30 yen (total amount is the same as the previous fiscal year)6Topics by Segment○Facilities Construction Business
Strategically receive orders for large-scale projects, which will form future stock
Overhaul earningsIncrease works carried forward means contributions to sales and profit will befrom FY2017 onwards○Machinery Systems Business
Increase “hybrid facilities” projects, that combine robots with transportfacilities
Respond to labor-saving requirements due to the declining birth rate

○Environmental Systems Business
Receive satisfactory orders, providing a pathway to recovery in results
Contributions from first orders for DBO(*) waste treatment facility projects*DBO (Design Build Operate) is a means of achieving the private management ofpublicly owned facilities by placing a blanket order for design, building, operation,and maintenance with a private enterprise
7Performance Plan for FY2017(Millions of yen)

Amendedplan for 2017(B)(*)
Differential(B-A)

Indicator

2016 results(A)

Initial plan for 2017
(Planned value forPhase 1)

Net Sales

168,500

190,000

180,000＋11,500

Gross profit(margin)

22,500（13.4%）

23,000（12.1%）

24,000（13.3%）＋1,500（-0.1pt）

Operating income

6,000（3.6%）

7,000（3.7%）

7,000（3.9%）+1,000（+0.3pt）

6,800(4.1%)

7,500(3.9%)

7,500(4.2%)+700(+0.1pt)(margin)
Ordinary income(margin)*Subtraction based on stated values
・Although the plan for the second year of “Century 2025” will see lower income than the initial plan,increased income and profit are planned on a year on year basis
・Projects for which orders have been received are plentiful at 123.7 billion yen (up 16.3% year on year)
・Gross profit margin is expected to decrease slightly due to sales of large-scale jobs
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