Status of Business Progressin the Medium-Term Management Plan“Century 2025” Phase1- FY2018 is the final year -May 14, 2019
Sanki Engineering Co., Ltd.
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Business Results
2018 results
Net sales（Millions of yen）

”Century 2025”
Phase12400002018 results
Gross profit（Millions of yen）

”Century 2025”
Phase1

34000

22000032000

200000

30000
28000

180000

26000

160000

24000
22000

14000020000
12000018000

100000

16000
14000

80000

12000

60000

10000
8000

40000

6000

20000

4000
2000

Forecast

Net sales

Forecast

Gross profit

2

FY2018FY2017FY2016FY2015FY2014FY2013

FY2012FY2011FY20100
FY2009FY2018FY2017FY2016FY2015FY2014

FY2013

FY2012FY2011FY2010FY20090Business Results
2018 results

Operating income

Forecast

FY2018FY2017FY2016FY2015FY2014FY20130
FY20120
FY20182000

FY20172000

FY20164000

FY20154000

FY20146000

FY20136000

FY20128000

FY20118000

FY201010000

FY2009

10000

Forecast”Century 2025”
Phase112000

FY2011

12000

Ordinary income（Millions of yen）

FY2010”Century 2025”
Phase1

FY2009Operating income（Millions of yen）

2018 results

Ordinary income3Topics by Segment○ Facilities Construction Business(1) Strategically receive orders for large-scale projects, which will form futurestock(2) Receive Energy Conservation Grand Prize for energy conservation systemthat uses heat from hot springs○ Machinery Systems Business(1) Receive first orders for conveyor and sorting device “Cross Belt Sorter CBII”(2) Commence new plant construction○ Environmental Systems Business(1) Receive ongoing order for waste incineration facilities(1 per year)(2) Receive first order for continuous heat sterilization
apparatus for medical and pharmaceutical wastewater○ Real Estate Business
Commence land lease for the former Yamato
Engineering Center sites

Oochi Clean Center
conceptual drawing4Status of Measures
Measures to enhance quality and become the company of choice forcustomers(1) Shareholder returns

Dividends, retirement, and acquisition of treasury stock(2) Enhancing quality

Promotion of the STeP* project(3) Activities this year

Development of new technology, work-style reforms,social contributions, and awards received

Details to follow* STeP (Sanki Techno Park) ProjectA project to redevelop the land and buildings, primarily on the Sanki Yamato property (the Sanki Yamato Building and the old Yamato
Plant), a real estate holding of Sanki Engineering.
Namely the construction of the Sanki Techno Center, followed by the reorganization of the machinery systems manufacturing plantand other effective uses of real estate holdings.

5Shareholder Returns￮ Dividends
Annual dividend per share (yen)40353025201510
50

Extra dividend
Commemorative dividend
Regular dividend

Needs to be checked￮ Retirement andacquisition of treasurystock(1) 1,000,000 shares
retired(retirement completedin Nov. 2018)(2) 1,000,000 sharesacquired(acquisition completed
in Jan. 2019)6Enhancing Quality○ Promotion of the STeP Project(1) Sanki Techno Center
Full opening in October 2018(2) New Machinery Systems Plant“Yamato Product Center”

Sanki Techno Center

Commencement of constructionin April, 2018
Production scheduled to commencein August 2019(3) Site of the old Yamato Plant
Commencement of land leasingin May 2018

Yamato Product Center
conceptual drawing

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Activities This Year
(1) Development of new technology
Chilled water(approx. 15ºC)

Chilled water(approx. 15ºC)

Plastic curtain

Operation area

Cooling

Cooling
Production
Maintenance unit
area

Dust
removing

Production
unit
Maintenancearea<Facilities Construction>
DOUPTM, an energy-saving
HVAC system forcleanrooms< Machinery Systems >Rice ball transfer system
for food processing
plants

DOUPTM system<Facilities Construction>
selFortTM smart HVAC
system for offices
Air conditioner<Facilities Construction>
Heat stroke monitoring
system that uses the IoTPower source + airflow command

Insulation

Power source +airflow commandControlhandset

Airflow
commandControlpanel

Airflow
command<Environmental Systems>
Continuous heatsterilization apparatus for
medical andpharmaceuticalwastewater8

Activities This Year
(2) Work-style reforms<Facility Systems>
NEW OFFICE Project, which
includes new productdevelopment and work stylereforms.

Many opinions and needs wereexpressed by employees at “CCU”*
and “Ladies’ Roundtables,” whichallow direct dialogue between
management and employees.

(3) Social contributions
In addition to making
donations through“SANKI YOU EcoContribution Points,” weparticipated inafforestation activities
throughout Japan.

Sport sponsorship also strengthened
President/Mid-level officers CCU

President/Veteran CCU

We partially reformed the HR system,
such as by increasing startingsalaries and reviewing salary levels
and promotion conditions accordingly.
3rd Sanki Ladies’ Roundtable

In the first half of the fiscal year, we supported adeaf rugby match for deaf players and a student
soccer match between Waseda University andKeio University.
In the second half of the fiscal year, we became
the official sponsor of the women’s soccer team“Yamato Sylphid,” located in Yamato City,
Kanagawa Prefecture, which is the location of theSanki Technology Center.

* CCU＝Century Communication Up

9From the ESG Perspective
Status of implementation

EEnvironment

SSociety• 2018 Energy Conservation Grand Prize, Agency for Natural Resources and Energy
Commissioner’s Prize• selFortTM smart HVAC system for offices• DOUPTM energy-saving HVAC system for clean rooms• Dispatched employees from the HVAC Facilities Division to the National Institute ofPolar Research Japanese Antarctic Research Expedition• Continued contributions through SANKI YOU eco contribution points• Continued the company’s unique work style reform, Smile Project (from October 2015)• Continued CCU for direct dialogue between management and employees• NEW OFFICE Project for office reforms, including work style reforms• Heat stroke monitoring system to protect workers at construction sites• Company-wide penetration of SDGs (Corporate ethics training and integrated reporting)• Review of the composition of the Board of Directors• Dialogue with shareholders

GGovernance(increased the number of opportunities for dialogue and held briefing sessions for individual investors)• Commencement of revision of Board of Directors’ tablingprocedures
The Company’s booth was visited by many people at• Reduction in cross-shareholdingsa briefing session for individual investors

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Finally

The Sanki Group pursues growth one step at a time,
constantly refining its technical skills and human resources
to provide engineering that creates customer satisfaction in any age,
and achieve sustainable growth and medium to long-term increases incorporate value.

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