Status of Business Progress in
the Medium-Term Management Plan“Century 2025” Phase3 FY2023
May 10, 2024

Phase 3 Basic Policies
The Phase 3 medium-term management plan will put the finishing touches on our “Century 2025”
long-term vision. During this phase we will realize our ambition of becoming the company of choicethrough the maturation and evolution of measures taken up till now aimed at improving quality andreliability, and the addition of three new measures, namely: contribute to the sustainability ofsociety, accelerate work style reforms, and invest toward the next era.

Phase 1Enhance Quality

Phase 2
Enhance Reliability

Strengthen CoreBusinesses
Improve component technologies
and achieve stable growth

Promote Growth Strategies
Pursue future growth in the areasof technology and business

Enhance the Sanki Brand
Develop human resources thatpossess the Sanki spirit andsocial contribution

Further pursue quality
・Improve construction
productivity
・Meet to energy saving andlabor reduction needs
・Promote technological R&D
・Continue to receive orders forstock projects
・Create better work conditions
・Improve internalcommunication

Disclose financial & capital policies

FY2022–FY2025
2022～2025年度

Phase 3Phase3
Company of Choice「選ばれる」
Maturity and Evolution of Measures toEnhance Quality and Reliability

FY2019–FY2021

Refining Technical Skills andHuman Resources to Enhance Quality

FY2016–FY2018

Strengthen information dissemination capabilities

Contribute to thesustainability of society
Accelerate work stylereforms

Invest toward the nextera

Long-Term Vision“Century 2025”
Becoming even more the
ステークホルダーから
company of choice for
もっと「選ばれる」会社
stakeholdersの実現

Note: The ESG policy in Phase 2 has evolved into the Sustainability policy in Phase 32©2024 SANKI ENGINEERING CO., LTD. All Rights Reserved.

Phase 3 Targets and Second-Year Results
Phase 3 targets
By FY2025

FY2023Results

Difference

Net Sales¥220.0bn¥221.9bn¥1.9bnGross profit[margin]¥36.0bn[16.5%]¥34.6bn[15.6%]¥(1.4)bn[(0.9)pt]

Ordinary profit[margin]¥12.0bn[5.5%]¥12.7bn[5.7%]¥0.7bn[0.2pt]Phase 3 targets
By FY2025

FY2023Results

Ordinary profit
margin

5.0% or more

5.7%

Dividend policy

Dividend payout ratio 50% or more
Annual dividend per share of ¥70 or more

Dividend payout ratio 51.3%
Annual dividend per share of ¥85

Acquisition oftreasury stock

About 5 million shares*

1.42 million shares(Cumulative total of 2.92 million shares
during period of plan)

ROE

8.0% or more

9.2%

Growthinvestment

About ¥20bn*¥2.7bn(Cumulative total of ¥5.9bn during
period of plan)*Cumulative during period of plan

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Orders Received/Net Sales
Consolidated Orders Received

Consolidated Net Sales（Billions of yen）

（Billions of yen）

Phase1

Phase2Phase3250.0

Phase1

Phase2Phase3

250.0
2nd Quarter

232.3

Full year

2nd Quarter

200.0

200.0

150.0

150.0

100.0

100.0

50.0

50.0

Full year

221.9

0.00.02016201720182019

202020212022202320162017

2018

2019

2020

2021

20222023

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Gross Profit/Gross Profit Margin
Consolidated Gross Profit Margin

Consolidated Gross Profit（Billions of yen）

Phase140.0

Phase2

2nd Quarter

35.0

Phase318.0%

Phase1

Phase2

34.6

Full year

2nd Quarter

17.0%

30.0

16.0%

25.0

15.0%

20.0

14.0%

15.0

13.0%

10.0

12.0%

5.0

11.0%

Phase3Full year

15.6

10.0%

0.0
2016

2017

2018

2019

2020

2021

2022

2023

2016

2017

2018

2019

2020

2021

2022

2023

5
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Status of Measures◆Topics in each business● Facilities Construction Business・ Focused on projects for semiconductor and EV battery manufacturing facilities tobuild a legacy for the future・ Implemented initiatives in reducing overtime work by improving on-site operational
efficiency with DX
・ Developed next-generation cleanrooms for semiconductor and EV batterymanufacturing facilities
・ Established Design & Engineering Division to respond to larger-scale projects andspecial projects● Facility Systems Business・ Expand consulting service offerings
・ Strengthened the total integration business of ICT・ Expand on-site information and communication infrastructure business・ Improved productivity in the office design operation in collaboration with astartup company

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Status of Measures◆Topics in each business● Machinery Systems Business・ Cultivated the automation and labor-saving market using technologies such as AI,IoT and robots
・ Expand sales of sorting systems for the logistics market.
Exhibited “Branch Ball,” a three-way sorting system, at the “Smart Logistics EXPO
2024”
・ Developing new services aimed at expanding
capacity in collaboration with a startup company
・ Built a cleanroom in the Yamato Product Center,and started development and manufacturing of
high-value-added products®

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Status of Measures◆Topics in each business● Environmental Systems Business・ Concluded a basic agreement and a basic contract with
the Tokyo Metropolitan Government Bureau of Seweragewith respect to a project at the largest water reclamation
center in Japan, “Morigasaki Water Reclamation Center
Digestion Gas Power Generation Project”
A project to generate power and secure hot water for heating digestion tanks
through effective use of digestion gas (methane concentration of around 60%)
generated from sewage sludge, a biomass resource. Sanki was selected as acontractor based on the DBO* method.
* DBO (Design Build Operate): a method of engaging a single private contractor toundertake the entire task of designing, construction, operation, and maintenance.

・ Carried out restructuring of Group companies’ businesses
Private water and wastewater business, chemical engineering®business, and sludge
recycling business of Sanki Kako Kensetsu Co., Ltd. were transferred to Sanki Kankyo
Service Co., Ltd. These two companies will enhance their respective expertise andaim to grow as companies having competitive advantage and operating more
efficiently. At the same time, their respective trade names were changed as follows.
Sanki Kako Kensetsu Co., Ltd.
→ Sanki Greentech Co., Ltd.
Sanki Kankyo Service Co., Ltd.
→ Sanki Acquatech Co., Ltd.
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Status of Measures◆Technological Development● Developed a BIM (Building Information Modeling) computation coordination platform forrealizing automated labor-saving process of technical computing linked to BIM data

● Developed sewage biomarker sensors for real-time monitoring of infectious disease
trendsSelected by the Ministry of Land, Infrastructure, Transport and Tourism for its FY2024
B-DASH Project (Feasibility Study) as a continuation from the previous fiscal year
● Conducted research on the use of insects to convert sewage sludge into feed andfertilizer
Selected by the Ministry of Land, Infrastructure, Transport and Tourism for its FY 2023
applied research in sewerage● Continuous sterilization device and continuous sterilization method
Received the “Chugoku Bureau of Economy, Trade and Industry
Director’s Award” of the Chugoku Region Invention Awards for
FY2023
Continuoussterilization device

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Status of Measures◆Sustainability
Environment● Expanded recipients of support under the SANKI YOU Eco Contribution Point
SystemPlanted trees in Wakayama, Shiga, and Kumamoto
prefectures● Named to CDP’s Climate Change A List company (highestrating) for the second consecutive year, in recognition foroutstanding initiatives and information disclosure on climatechange● Continued participation in the Ministry of Environment’s 30by30 Alliance forBiodiversity● Started operation of renewable energy (solar power) PPA business for the Sanki
Techno Center and Yamato Product Center● Started application process for obtaining SBT* accreditation* Science Based Targets (SBT) are targets certified by theScience Based Targets initiative (SBTi), an international
initiative, for reducing greenhouse gas emissions in line with
the Paris Agreement goals to limit the global averagetemperature increase to 1.5 °C above pre-industrial levels

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Status of Measures
Society and People● Raised salary levels and increased allowances● Formulated “SANKI DX Vision” and obtained
certification as a “DX-certified operator”● Continued to support environmental conservation in Antarctica
Dispatched 20 employees to the initiative since FY1991

Governance● Action taken to implement “management that is conscious of cost ofcapital and stock price” as required by the Tokyo Stock Exchange
Disclosure of the cost of shareholders’ equity● Started operation of BCMS* in the 5 domestic subsidiaries* BCMS: Business Continuity Management System
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Status of Measures◆ Invest toward the Next Era
Positioned investment toward the future (human resources, DX, R&D, etc.)● Launched capital investment both in Japan and overseas for thestrategic product AEROWING, an aeration system● Started operation of the cleanroom installed inside the Yamato ProductCenter to develop conveyors● Made capital investments for decarbonization based on Sanki's carbonneutral declaration
These represented a total investment of ¥5.9bn out of the total 4-year
investment budget of ¥20.0bn.
● Launched the Earth MIRAI Project to explore new technologies
Called for applications from employees, with 122 employees applying

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Statements about the future, such as results forecasts included in these materials, are based on judgments made according tothe information available to the Company as of May 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

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