The 3rd Quarter FY2022
Summary of Financial Results
February 10, 2023

The 3rd Quarter FY2022 Financial Summary☆Key Points of Financial Results
Orders received increased significantly on the back of large-scale project orders, mainly for Facilities Construction,
generating a plentiful balance of work brought forward to the next period
Net sales and profit declined due to a lack of substantial progress on large-scale projects<Orders> 181.663 billion yen (145.794 billion yen in the same period of the previous fiscal year)● In the Facilities Construction Business, orders increased significantly year on year on the back of orders for large-scale projects,
mainly for building air-conditioning and plumbing and industrial HVAC
● In the Plants & Machinery Systems Business, orders declined due mainly to a fallback from orders for large-scale projects
received in Q3 FY2021 in Environmental Systems, despite strong orders in Machinery Systems<Net sales> 125.713 billion yen (135.723 billion yen in the same period of the previous fiscal year)● In Facilities Construction, net sales and profit declined year on year due to a lack of substantial progress on large-scale projects● In Machinery Systems, net sales declined due mainly to a decrease in work carried over from the start of the period and lesslarge-scale conveyance Systems work
<Gross profit> Gross profit amounted to 16.708 billion yen (19.959 billion yen in the same period of the previous fiscal year)● Gross profit declined due to the impact of lower net sales● Gross profit margin fell year on year, with the indirect cost ratio for projects rising due to lower net sales and a fallback fromhigh-profitability projects in Q3 FY2021<Balance of work brought forward> 206.687 billion yen (151.747 billion yen in the same period of the previous fiscal year)● Facilities Construction and Machinery Systems both increased year on year, securing a plentiful volume of work, due to anincrease in orders<FY2022 consolidated results forecasts> (Compared with the forecasts announced on November 11, 2022)● Orders received: 220 billion yen (+10 billion yen); Net sales: 193 billion yen (-7 billion yen);
Ordinary profit: 7 billion yen (-3 billion yen)

<Shareholder returns>● Conducted shareholder returns according to medium-term management plan “Century 2025” Phase 3 financial and capital
policies● Forecast interim dividend: 35 yen, year-end dividend: 35 yen, annual dividend: 70 yen (no change from initial forecast)● Canceled 1,500 thousand treasury shares on August 15, 2022; Completed the repurchase of 1,500 thousand shares by January
16, 2023● Expected payout ratio: 80.8%, total shareholder return: 129.3%
2©2023 SANKI ENGINEERING CO., LTD. All Rights Reserved.

Contents

1

The 3rd Quarter FY2022 Results2

The 3rd Quarter FY2022
Balance Sheet and Statement of Cash Flows3

FY2022 Forecast

4

Shareholder Returns

5

Supplementary Materials
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1
FY2022 3Q RESULTS

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【Overall Results】
FY2022 3Q Results (Consolidated)(Millions of yen)

December
FY2020December
FY2021

December
FY2022

Orders received

146,447

145,794

Balance carried forward

153,395

Net salesYear on year

Rate of
Change (%)

181,663

35,86824.6

151,747

206,687

54,94036.2

129,215

135,723

125,713(10,009)(7.4)

Completed construction
contracts

127,366

133,851

123,786(10,065)(7.5)

Real estate business andothers

1,849

1,871

1,927

55

3.0

18,172

19,95916,708(3,251)(16.3)

Completed construction
contracts

17,421

19,164

15,973(3,190)(16.7)

Real estate business andothers

750

794

734

(60)

(7.6)

14.1

14.7

13.3

(1.4)

―

Selling, general and administrative expenses

15,31515,00915,615606

4.0Operating profit (loss)

2,856

4,949

1,092

(3,857)(77.9)

514

594

844

249

42.0

Ordinary profit (loss)

3,370

5,544

1,937

(3,607)(65.1)

Extraordinary profit and loss

(366)

(87)

(164)

(76)

―

Profit attributable to owners of parent (loss)

2,469

3,684

983

(2,700)(73.3)

Gross profit

Gross profit margin (%)

Non-operating profit and losspt.

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【Overall Results】
Quarterly Results (Consolidated)
FY2020(Millions of yen)

FY2021

FY2022

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

Orders received

47,66055,575

43,21149,13256,02340,48249,28856,456

46,974

71,93962,749Net sales

38,25342,611

48,35160,851

38,73745,33251,652

57,46633,45040,05952,203Gross profit

5,120

5,637

7,414

10,582

4,661

6,396

8,901

10,264

3,948

5,213

7,546

Gross profit margin (%)

13.4

13.2

15.3

17.4

12.0

14.1

17.2

17.9

11.8

13.0

14.5

Selling, general andadministrative expenses

5,274

4,976

5,064

5,939

4,940

5,092

4,976

6,101

5,209

5,212

5,193

Operating profit (loss)

(154)

660

2,350

4,642

(278)

1,303

3,924

4,162

(1,260)

0

2,352

(0.4)

1.5

4.9

7.6

(0.7)

2.9

7.6

7.2

(3.8)

0.0

4.5

Ordinary profit (loss)

66

776

2,527

4,826

(13)

1,324

4,233

4,272

(860)

109

2,688

Extraordinary profit and loss

(82)

(243)

(40)

(33)

(1)

11

(97)

(215)

25

(170)

(18)

11

809

1,647

3,431

(35)

899

2,820

2,805

(637)

(132)

1,754

Operating profit margin (%)

Profit attributable toowners of parent (loss)

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【Orders Received】
Orders Received by Segment (Consolidated)(Millions of yen)

December
FY2020

Segment

December
FY2021

December
FY2022

Year on year

Rate of
Change (%)

HVAC and Plumbing for
Buildings

45,52039,80862,88523,07658.0

Industrial HVAC

49,03240,64864,65024,00159.0

Electrical Systems

16,64922,532

21,214(1,317)(5.8)

Facility Systems

7,998

7,838

9,566

1,727

22.0

119,201

110,828

158,316

47,487

42.8

Machinery Systems

6,169

7,134

7,320

185

2.6

Environmental Systems

19,412

26,25914,489(11,770)(44.8)

Total of Plant & Machinery
Systems Business

25,58233,39421,809(11,584)(34.7)

144,783

144,223

180,126

35,902

24.9

1,777

1,800

1,852

51

2.9

Others

432

399

366

(32)

(8.2)

Adjustments *

(545)

(628)

(681)

(53)

―

146,447

145,794

181,663

35,868

24.6

Total of Facilities Construction
Business

Sub-total
Real Estate Business

Total* “Adjustments” eliminate inter-segment transactions included in each segment.

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【Net Sales】
Net Sales by Segment (Consolidated)(Millions of yen)

December
FY2020

Segment

December
FY2021

December
FY2022

Year on year

Rate of
Change (%)

HVAC and Plumbing for
Buildings

36,67042,08339,056(3,026)(7.2)

Industrial HVAC

44,85541,91838,504(3,413)(8.1)

Electrical Systems

17,643

17,782

17,039

(743)

(4.2)

Facility Systems

7,169

6,993

7,239

246

3.5

106,339

108,777

101,841(6,936)(6.4)

Machinery Systems

6,617

7,528

5,228

(2,299)(30.5)

Environmental Systems

14,713

17,812

16,943

(869)

(4.9)

Total of Plant & Machinery
Systems Business

21,331

25,341

22,172(3,168)(12.5)

127,671

134,118

124,013(10,104)

(7.5)

1,777

1,800

1,852

51

2.9

Others

567

392

368

(24)

(6.3)

Adjustments*

(799)

(589)

(520)

68

―

129,215

135,723

125,713(10,009)(7.4)

Total of Facilities Construction
Business

Sub-total
Real Estate Business

Total* “Adjustments” eliminate inter-segment transactions included in each segment.

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【Profit】
Gross Profit by Segment (Consolidated)(Millions of yen)

December
FY2020

Segment

December
FY2022

Year on year

Rate of
Change (%)

HVAC and Plumbing for
Buildings/Industrial HVAC/Electrical Systems

13,298

14,948

11,715(3,232)(21.6)

Facility Systems

1,107

1,191

1,266

75

6.3

14,406

16,13912,981(3,157)(19.6)

Machinery Systems

1,071

1,379

466

(912)

(66.1)

Environmental Systems

2,133

1,902

2,792

890

46.8

Total of Plant & Machinery
Systems
Business

3,204

3,281

3,259

(22)

(0.7)

17,61019,420

16,241(3,179)(16.4)

Real Estate Business

685

724

664

(59)

(8.2)

Others

44

25

12

(12)

(49.5)

(168)

(210)

(210)

0

―

18,172

19,95916,708(3,251)(16.3)

Total of Facilities Construction
Business

Gross Profit by Segment

December
FY2021

Sub-total

Adjustments
Total

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2
FY2022 3Q
BALANCE SHEET AND STATEMENT OF CASH FLOWS

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【Financial Conditions】
Balance Sheet (Consolidated)
End of
FY2021

Current assets(Millions of yen)
End ofDecember2022

End ofprevious FY

Rate ofchange (%)

End ofDecember
2021

125,742

113,073(12,669)(10.1)

116,812

Cash and deposits

42,77932,193(10,585)(24.7)

30,759Securities

5,999

4,999

(999)

(16.7)

3,999

Notes receivable – trade, electronicallyrecorded monetary claims –operating,accounts receivable from completed
construction contracts and other, andcontract assets

66,76160,074(6,687)(10.0)

68,80357,866

56,696(1,169)(2.0)

55,92730,44728,914(1,532)(5.0)

29,50079,21071,449(7,761)(9.8)

70,335

Electronically recorded obligations operating

2,588

3,145

556

21.5

1,636

Accounts payable on construction
contracts

37,932

37,617

(315)

(0.8)

39,998Non-current liabilities

10,121

10,528407

4.0

12,125

Total net assets

94,27887,792(6,485)(6.9)

90,279(5,243)(4,952)291―(5,215)

Total liabilities and net assets

183,609

169,770(13,839)(7.5)

172,739

Book-value per share (yen)1,685.20

1,601.57(83.63)(5.0)

1,612.94

Equity ratio (%)

51.2

51.6

0.4pt.

―

52.1

Interest-bearing liabilities (consolidated)

9,205

7,202

(2,003)(21.8)

8,692

Non-current assets
Investment securities

Current liabilities

Treasury shares

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【CF】
Statement of Cash Flows (Consolidated)○The balance of cash and cash equivalents decreased from the end of the previous fiscal year
・The decrease in cash flow from operating activities was mainly due to the payment of income taxes, despite
progress in collecting trade receivables
・The increase in cash flow from investing activities was mainly due to purchases of property, plant and equipment
and intangible assets, which more than offset the proceeds from redemption of securities
・The decrease in cash flow from financing activities was mainly due to the payment of dividends and share
repurchases based on finance and capital policies.
(Millions of yen)

FY2018FY2019FY2020

FY2021

December
FY2022

December
FY2021

Cash flows from operating
activities

6,786

11,940(483)

18,529(1,471)

4,572

Cash flows from investing
activities(3,775)(303)(1,423)(3,384)(400)(1,965)

Cash flows from financing
activities(5,215)(8,955)(6,974)(7,518)(8,789)(7,979)Cash and cash equivalents
at end of period

42,61245,94637,08744,77934,19331,75912©2023 SANKI ENGINEERING CO., LTD. All Rights Reserved.

3
FY2022 FORECAST

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【Overall Forecast】
FY2022 Full-Year Forecast (Consolidated)
FY2019FY2020

FY2021(Millions of yen)

FY2022
forecast

FY2022
forecast(Interim forecast
from November
11, 2022)(Interim forecast
from February
10, 2023)

A

B

Increase/
Decrease
B–A

Rate of
Change (%)

Orders received

194,018

195,580

202,250

210,000

220,000

10,000

4.8

Balance carried forward

136,163

141,676

150,737

160,737

177,737

17,000

10.6

Net sales

207,684

190,067

193,189

200,000

193,000(7,000)(3.5)

Gross profit

32,11028,75430,22331,50027,700(3,800)(12.1)

15.5

15.1

15.6

15.8

14.4

(1.4)

―

Gross profit margin
(%)

pt.

Operating profit

10,674

7,498

9,112

9,500

6,200

(3,300)(34.7)

Ordinary profit

11,224

8,196

9,817

10,0007,000(3,000)(30.0)

Profit attributable toowners of parent

7,576

5,901

6,489

6,900

4,800

(2,100)(30.4)

Regular dividends per
share (yen)

70

70

70

70

70

―

―

Extra dividends per
share (yen)

25

10

15

―

―

―

―

95

80

85

70

70

―

―

Cash dividends per
share (total) (yen)14©2023 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Forecast of Orders Received and Net Sales】
FY2022 Forecast of Orders Received andNet Sales by Segment (Consolidated)
FY2022
Orders Received Forecast

Segment(Millions of yen)

FY2022
Net sales Forecast

HVAC and Plumbing for
Buildings

74,00059,000Industrial HVAC

72,00059,000Electrical Systems

26,00026,000

Facility Systems

13,00013,000185,000

157,000

Machinery Systems

13,0008,000

Environmental Systems

20,00026,000Total of Plants & Machinery
Systems Business

33,00034,000218,000

191,000

2,400

2,400

500

500

△900

△900

220,000

193,000

Total of Facilities Construction
Business

Sub Total
Real Estate Business
OthersAdjustments*
Total* Adjustments eliminate inter-segment transactions included in each segment.

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4
SHAREHOLDER RETURNS

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【Shareholder Returns】
Dividends and Others
・ Conducted shareholder returns according to medium-term management plan “Century 2025” Phase 3 financial andcapital policies
・ Forecast interim dividend: 35 yen, year-end dividend: 35 yen, annual dividend: 70 yen (no change from initial forecast)・ Canceled 1,500 thousand treasury shares on August 15, 2022; Completed the repurchase of 1,500 thousand shares by
January 16, 2023
・ Expected payout ratio: 80.8%, total shareholder return 129.3%
FY2018
Earnings per share (yen)FY2019FY2020

FY2021

FY2022(Forecast)150.02128.51103.12115.13

86.60

Cash dividends per share:
regular dividends (yen)

40

70

70

70

70

Cash dividends per share:
extra dividends (yen)

20

25

10

15

―

Cash dividends per share (yen)

60

95

80

85

70

Payout ratio (consolidated) (%)

40.0

73.9

77.6

73.8

80.8

Total return ratio (%)

52.9

111.4

97.3

95.7

129.3

Number of shareholders at end of FY

3,381

4,216

14,861

14,524

Share price at end of FY (yen)

1,210

1,211

1,453

1,398

Purchase of treasury shares(thousand shares)

1,000

1,958

1,000

1,000

1,500

Cancellation of treasury shares(thousand shares)

1,000

2,000

1,000

―

1,500

ROE (%)

10.3

8.6

6.6

7.0

5.2

ROA (%)

6.0

6.0

4.7

5.5

3.9

17

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【Shareholder Returns】(Millions of yen)Phase2Phase1

Phase3

10,000160.0%

Value of treasury shares acquired
自己株式取得額（左軸）(left axis)

配当金支払額（左軸）Amount of dividends (left axis)

148.9%

総還元性向（右軸）
Total return ratio (right axis)

140.0%

129.3%

2,899

8,000

配当性向（右軸）
Payout ratio (right axis)

120.0%

111.4%
95.7%
97.3%

100.0%

6,000

1,171

3,679
1,191
4,000

1,438

2,347

80.0%

80.8%
73.9%

77.6%

73.8%
60.0%

52.9%
40.6%
2,000

55.5%

←50% Payout ratio
5,543

40.0%

40.6%

4,568

3,860

3,595
1,906

2,136

2016

2017

40.0%

4,773

20.0%

0

0.0%
2018

2019

2020

2021

2022
(Forecast)

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5
SUPPLEMENTARY MATERIALS

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【Orders Received】
Orders Received by Type(Millions of yen)

FY2019Full-year

FY2020Full-year

FY2021
Full-year

December
FY2021A

December
FY2022
B

Diff.
B–A

Orders received (Non-consolidated: Facilities
Construction Business)

147,191

149,278

151,747

104,486

151,743

47,257

Orders received from general contractors(Non-consolidated: Facilities Construction
Business)

48,23863,54462,29934,53978,75844,219

32.8

42.6

41.1

33.1

51.9

18.8

194,018

195,580

202,250

145,794

181,663

35,868

3,143

2,789

4,283

3,546

2,683

(863)

1.6

1.4

2.1

2.4

1.5

(0.9)

Orders received for renewal construction(Consolidated)

112,909109,585

108,561

83,30696,555

13,248Rate of orders received for renewal
construction (Consolidated) (%)

58.2

56.0

53.7

57.1

53.2

(3.9)

114,208

101,147

107,855

74,47473,617(856)

Rate of orders received from generalcontractors (Non-consolidated: Facilities
Construction Business) (%)
Orders received (Consolidated)
Orders received from overseas projects(Consolidated)
Rate of orders received from overseas
projects (Consolidated) (%)<Ref.> Net sales for renewal construction(Consolidated)

pt.

pt.

pt.

20
©2023 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Orders Received】
Orders Received by Industry (Consolidated)(Millions of yen)

December 2020
December 2021
December 2022

45,00040,00035,00030,00025,00020,00015,00010,0005,000

0Government Offices

Miscellaneous businessservices

Wholesale and Retail Trade

Education

Medical Services

Real Estate

Finance and Insurance

ChemicalMachinery

Food

Pharmaceutical Industry

Automobile

Electrical Machinery

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【Orders Received / Net sales】〇Main Large-Scale Projects Received
Item of construction

Type ofconstruction

Location

Plumbing systems

New construction
work

Tokyo

NEC Fuchu Workplace New Building Construction (tentative name)

HVAC and plumbing systems

New construction
work

Tokyo

Panasonic Corporation Suehirocho Building Project (tentative name)

HVAC and plumbing systems

New construction
work

Osaka

Shimoyama Phase IV Facilities Construction Project – Building 3

HVAC and plumbing systems

New construction
work

Aichi

Kasugai Water Purification Plant Activated Carbon Injection Equipment Project

Water and sewage treatment
systems

New construction
work

Aichi

HVAC systems

Renovation

Osaka

HVAC and plumbing systems

New construction
work

Kyoto

TWC Phase 1 Air Conditioning, Plumbing, and Electrical Systems Project

HVAC, plumbing, andelectrical systems

New construction
work

Shizuoka

Tenjin 1-Chome North 14 Block New Building Construction (tentative name)

HVAC, plumbing, andelectrical systems

New construction
work

Fukuoka

HVAC and electrical systems

Renovation

Kagoshima

Property nameNihombashi 1-Chome Central Type 1 Urban Redevelopment

Osaka City Museum of Fine Arts Large-scale Renovation Project
Former Shimmichi Elementary School Site Utilization Plan (Hotel Wing) (tentative
name)

PHENITEC SEMICONDUCTOR Kagoshima Plant Building 5
3F Cleanroom Conversion Project

12 other projects* The property name is the name being used by the Company. This may differ from the name used on the construction contract.

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【 Orders Received / Net Sales 】〇Main Large-Scale Completed Construction Projects
Property nameItem of construction

Type of construction

Location

Nidec Corporation Mukomachi Project C Building Construction and Other Works

HVAC and plumbing
systems

New construction work

Kyoto

Kawanishi City Medical Center

Plumbing systems

New construction work

Hyogo

Ochi Clean Center New Combustible Waste Joint Processing Facility Construction
Project

Waste treatment facility

New construction work

ShimaneNippon Life Yodoyabashi Building New Construction Project

HVAC, plumbing, andelectrical systems

New construction work

Osaka

Biofermin Pharmaceutical New Factory Construction Project

HVAC systems

New construction work

Hyogo

Plumbing and electricalsystems

New construction work

Aichi

HVAC systems

RenovationTokyo

Toyota Technical Center Shimoyama Plumbing and Electrical Systems Project
Otemachi Nomura Building* The property name is the name being used by the Company. This may differ from the name used on the construction contract.

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【Orders Received】
Main Large-Scale Projects Received over 1 Billion Yen (by Building Use)
December FY2020

December FY2021

December FY2022

Office32

6Factory

5

2

6

Research institute

3

―

3

Hospital / clinic

1

1

1

Other building
interiors2

4

1

Railway / airport

1

School building /auditorium―

Complex building―

Hotel / ryokan

―

―

1

Waste processing
facility

12―

Water treatment
plant / sewage plant

2

2

1

18 Projects(34,559 million yen)

*Orders received from
customers: 8 Projects
Orders received fromgeneral contractors:
10 Projects―――

13 Projects(28,840 million yen)

*Orders received from
customers: 10 Projects
Orders received fromgeneral contractors:
3 Projects―
2
1

22 Projects(55,938 million yen)

*Orders received from
customers: 6 Projects
Orders received fromgeneral contractors:
16 projects

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【Operating Results】
Century 2025 Results (Consolidated)<Orders Received and Net Sales>
Phase1

Phase2Phase3(Millions of yen)

200,000

Orders received
Net sales
Balance carriedforward150,000

100,000

50,000

0
2016

2017

2018

2019

2020

2021

2022
(Forecast)

25©2023 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Operating Results】

Century 2025 Results (Consolidated)<Profit>Phase2Phase1(Millions of yen)Phase3（％）

36,00018.0

32,000

16.0

Gross profit (left axis)
売上総利益（左軸）
Operating profit (left axis)
営業利益（左軸）

28,00014.0

Ordinary profit (left axis)
経常利益（左軸）
売上総利益率（右軸）Gross profit margin (right axis)

24,00012.0

営業利益率（右軸）
Operating profit margin (right axis)
経常利益率（右軸）
Ordinary profit margin (right axis)

20,000

10.0

16,0008.0

12,000

6.0

8,000

4.0

4,000

2.0

0

0.0

2016

2017

2018

2019

2020

2021

2022
(Forecast)

26©2023 SANKI ENGINEERING CO., LTD. All Rights Reserved.

Statements about the future, such as results forecasts included in these materials, are based on judgments made according to
the information available to the Company as of February 10. Actual results may differ from the figures contained herein due toa number of factors.
For inquiries, please contact:
Corporate Communications Department,
SANKI ENGINEERING CO., LTD.
Tel：+81-3-6367-7041

27©2023 SANKI ENGINEERING CO., LTD. All Rights Reserved.