︱Sanki Engineering’s Future Vision and Value Creation ︱Management Resources of the Sanki Engineering GroupThe capital accumulated by the Sanki Engineering Group over nearly a century supports our daily business
operations and represents the wellspring for our next stage of growth. We will continue to enhance our management
resources while improving the quality of our total engineering capabilities, the greatest value offered by the SankiEngineering Group, to ensure our own sustainable growth.

• Secure and foster diverse and highly skilled human resources, who will lead our business in thefuture, as part of Phase 3 of the Medium-Term Management Plan, which focuses on enhancing
the Company’s quality and reliability toward becoming the company of choice.
• Provide career development and classroom training for qualification acquisition, as well aspractical technical and safety training with actual equipment, at the Sanki Techno Center, ourcomprehensive training and research facility.
• Provide training and offer the use of research facilities for subcontractors who work with us to
support on-site construction operations.
• Maintain efforts for creating working environments that enable each individual employee towork with vigor and pursue self-directed career development by fully demonstrating theircapabilities, including accelerating work style reforms by developing systems for supportingsite operations and DX, offering a rewarding personnel system, and establishing programs forbalancing personal life and work.
Related Policies and Measures under theMedium-Term Management Plan Phase 3

Ratio of employees by job classification

Related Policies• Smile Work Guideline

Other (managementsupport and otherjobs)

M easures under the Medium-TermManagement Plan Phase 3• Strengthen core businesses• Accelerate work style reforms• Invest toward the next era

22 %
16 %

50 %

R&D and design

12 %Human resource investment(FY2022)

Approx.

IntellectualCapitalProject
management andmanufacturing

As of March 31,2023

Sales

We receive orders for various types ofconstruction work based on the trust we havecultivated over the years with a diverse rangeof customers throughout Japan, including
building owners, developers, manufacturers,
and government agencies, and we carry out
construction work in cooperation with ourbusiness partners, including construction
companies and subcontractors.

By maximizing the use of elementaltechnologies involving air, water, heat,electricity, machinery, and information, we
contribute to meeting customer needs aswell as to the resolution of diverse issues
faced by society.

Project management technician (civil works,construction, electrical construction, pipe laying works)

23.1

1,225

billion yenpersons(Consolidated, as of April 1, 2023)

Natural Capital

Manufactured
CapitalThe Sanki Engineering Group maintains
locations in Japan and overseas that serveas base camps for promoting businessand cultivating human resources.

22SANKI REPORT 2023• We have operations throughout Japan, and in Asia and Europe. Our 18 domestic branch andbranch offices, as well as our five domestic and three overseas consolidated Group companies,
also serve as base camps for human resource development to support on-the-job training atconstruction sites.
• We regard the Sanki Techno Center, which houses the R&D Center, as our “temple of learning”
for passing down and developing technical skills.
• The Yamato Product Center, the main production base for conveyors, functions as a site for
improving quality, productivity, and development capabilities.
Related Policies and Measures under theMedium-Term Management Plan Phase 3
Measures under the MediumTerm Management Plan Phase 3• Strengthen core businesses• Promote growth strategies• Accelerate work style reforms• Invest toward the next era

Capital investment(FY2022)450

million yen

The Sanki Engineering Group contributes
to the creation of a decarbonizedsociety by installing energy-saving andenergy-creating equipment in buildings,
factories, stores, hospitals,
and infrastructure facilities.

ICT investment(FY2022)

1.65

billion yen• Maintain and strengthen the customer base cultivated over the years, including financial
institutions, electronics manufacturers, and automobile manufacturers.
• To strengthen the construction system, establish a certification and commendation programs aswell as regular meetings and training opportunities to maintain and strengthen relationships oftrust with members of subcontractor groups throughout Japan that support on-site constructionoperations.
• Improve payment terms to safeguard a stable business environment for our business partners.
• Actively communicate with governments and other relevant stakeholders in each region inwhich we operate, and conduct a variety of social contribution activities that benefit regional
development.
Related Policies and Measures underthe Medium-Term Management Plan Phase 3
Related Policies• S anki EngineeringGroup Procurement
PolicyMembers of
Subcontractor groups easures under the Medium-TermM
Management Plan Phase 3• Enhance the Sanki brand• Contribute to the sustainability of society859

companies• The R&D Center takes the lead in collaborating with business units to pursue new technologies,
improve and enhance the functionality of proprietary technologies, conduct basic research, andinvestigate new technologies.
• Develop solutions that meet the most advanced needs based on the elemental technologies of
total engineering encompassing design, construction, and maintenance in diverse fields, andcombine them with the latest IoT and AI technologies while also utilizing open innovation.
 roperly manage and operate intellectual property generated through R&D after compiling a•P
database, including patent summaries and gazettes. Regular internal information sharing andeducation and training on patents and the like actively promote the utilization and protectionof intellectual property.
Related Policies and Measures under
the Medium-Term Management Plan Phase 3

R&D Expenditures(FY2022)1.5

 easures under the Medium-Term Management Plan Phase 3M• S trengthen core businesses • A ccelerate work style reforms• I nvest toward the next era

billion yen• Develop environmentally sound products and construction methods.
• Engage in environmental conservation activities by promoting the SANKI YOU Eco Contribution
Point system.
• Quantitatively assess the environmental impact of electricity, and fuel and other energy and water
resources used in the Group’s business activities, as well as CO2 emissions and waste, and takesteps to improve them, as part of our role in conserving the global environment.
• Promote initiatives to reduce our own environmental impact, including the use of renewableenergy.
• Dispatch personnel to the Antarctic Research Expedition for preserving biodiversity in theAntarctic region by maintaining and managing wastewater treatment and HVAC facilities.
Related Policies and Measures underthe Medium-Term Management Plan Phase 3
Related Policies• S anki EngineeringGroup EnvironmentalPolicy• S ustainability Policy• S anki’s Carbon NeutralDeclaration

 easures under the MediumM
Term Management PlanPhase 3• Contribute to thesustainability of society• I nvest toward the next era

Management Resources of the Sanki Engineering GroupThe Sanki Engineering Group has been
pioneering in each era through thepower of technology and considers its
people, who possess that technology, tobe its greatest asset and the source of its
business competitiveness and corporate
value. By steadfastly investing in humancapital, we strive to create working
environments for a more effective
development and use of our humanresources.

Social andRelationship
CapitalStatus of the Medium-Term Management
Plan “Century 2025” Phase 3 (FY2022–2025)

Sanki Engineering’s Future Vision and Value Creation

Human Capital

PP. 26–28

CO 2 emissions by Scope(Consolidated, FY2022)

5.34
3.93

Scope 1 and 2
Scope 3

kt-CO2

million t-CO2

For more information on financial capital, see: “Message from the Chief Financial Officer”

P. 29

Message from the Chief Financial Officer

SANKI REPORT 2023

23