FY2022 Summary of Financial Results
May 12, 2023

FY2022 Financial Summary☆Key Points of Financial Results
Orders received increased on the back of large-scale project orders, mainly for Facilities Construction, generating a plentiful balanceof work carried forward
Net sales decreased YoY and gross profit also declined, with little progress on improving project profitability due to factors such as adecrease in properties completed and sold during the fiscal year
<Orders> 228.554 billion yen (202.250 billion yen in the previous fiscal year)● In Facilities Construction and Machinery Systems, orders increased year on year
● In Environmental Systems, orders fell, mainly due to a fallback from orders for large-scale projects received in FY2021<Net sales> 190.865 billion yen (193.189 billion yen in the previous fiscal year)● Net sales in Facilities Construction were flat year on year, and decreased in Machinery Systems due partly to a decline in work
carried over from FY2021<Gross profit> Gross profit amounted to 27.012 billion yen (30.223 billion yen in the previous fiscal year)● Profit declined due to a decline in profit margins in Facilities Construction and the fall in net sales and profit margins in Machinery
Systems● Profit in Facilities Construction was impacted by a lack of progress on improving project profitability due to a decrease inproperties completed and sold during the fiscal year
● Orders were placed early to control the impact of soaring materials prices, but less progress was made on cost reductions throughprice negotiation than in FY2021<Balance carried forward> 188.426 billion yen (150.737 billion yen in the previous fiscal year)● Facilities Construction and Machinery Systems both increased year on year, securing a plentiful balance of work carried forward<FY2023 consolidated results forecasts> (Comparison with FY2022)● Orders received: 190 billion yen (down 38.554 billion yen); Net sales: 210 billion yen (up 19.135 billion yen)
Ordinary profit: 8 billion yen (up 1.753 billion yen)
<Shareholder returns>● Conducted shareholder returns according to medium-term management plan “Century 2025” Phase 3 financial and capital policies● An extra dividend of 5 yen has been paid in addition to the regular dividend of 70 yen, resulting in a total annual dividend of 75 yen● 1,500 thousand shares of treasury shares were purchased and cancelled● payout ratio: 87.4%, total shareholder return: 136.4%

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Contents

1

FY2022 Results

2

FY2022
Balance Sheet and Statement of Cash Flows3

FY2023 Forecast

4

Shareholder Returns

5

Supplementary Materials
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1
FY2022 RESULTS

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【Overall Results】
FY2022 Results (Consolidated)(Millions of yen)
FY2020

FY2021

FY2022

Year on year

Rate ofchange(%)

Orders received

195,580

202,250

228,554

26,303

13.0

Balance carried forward

141,676

150,737

188,426

37,68825.0

Net sales

190,067

193,189

190,865(2,323)(1.2)

Completed construction
contracts

187,559

190,646

188,258(2,387)(1.3)

Real estate and others

2,507

2,542

2,607

64

2.5

28,75430,22327,012(3,211)(10.6)

Completed construction
contracts

27,76529,216

26,040(3,175)(10.9)

Real estate and others

988

1,007

971

(35)

(3.5)

15.1

15.6

14.2

(1.4)

―

Selling, general and administrative expenses

21,255

21,11021,603492

2.3

Operating profit

7,498

9,112

5,409

(3,703)(40.6)

698

704

837

132

18.8

Ordinary profit

8,196

9,817

6,247

(3,570)(36.4)

Extraordinary profit and loss (loss)

(399)

(303)

688

992

―

Profit attributable to owners of parent (loss)

5,901

6,489

4,750

(1,738)(26.8)

Gross profit

Gross profit margin (%)

Non-operating profit and losspt.

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

FY2021

FY2022

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Orders received

47,66055,575

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

46,974

71,93962,74946,890Net sales

38,25342,611

48,35160,851

38,73745,33251,652

57,46633,45040,05952,20365,152Gross profit

5,120

5,637

7,414

10,582

4,661

6,396

8,901

10,264

3,948

5,213

7,546

10,304Gross profit margin(%)

13.4

13.2

15.3

17.4

12.0

14.1

17.2

17.9

11.8

13.0

14.5

15.8

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

5,987

Operating profit (loss)

(154)

660

2,350

4,642

(278)

1,303

3,924

4,162

(1,260)

0

2,352

4,316

(0.4)

1.5

4.9

7.6

(0.7)

2.9

7.6

7.2

(3.8)

0.0

4.5

6.6

Ordinary profit (loss)

66

776

2,527

4,826

(13)

1,324

4,233

4,272

(860)

109

2,688

4,310

Extraordinary profit and loss

(82)

(243)

(40)

(33)

(1)

11

(97)

(215)

25

(170)

(18)

852

11

809

1,647

3,431

(35)

899

2,820

2,805

(637)

(132)

1,754

3,766

Operating profit margin (%)

Profit attributable toowners of parent (loss)

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

FY2020

FY2021

FY2022

Year on year

Rate of
Change (%)

HVAC and Plumbing for
Buildings

65,37158,60374,802

16,19827.6

Industrial HVAC

59,234

63,11378,082

14,968

23.7

Electrical Systems

21,472

27,85628,542685

2.5

Facility Systems

10,69010,93013,383

2,452

22.4

156,768

160,504

194,80934,304

21.4

Machinery Systems

7,858

8,914

11,654

2,739

30.7

Environmental Systems

28,71030,64019,929(10,710)(35.0)

Total of Plant & Machinery
Systems Business

36,56939,554

31,583(7,971)(20.2)

193,338

200,059

226,393

26,333

13.2

2,375

2,410

2,471

61

2.5

Others

609

563

542

(21)

(3.8)

Adjustments *

(742)

(782)

(853)

(70)

―

195,580

202,250

228,554

26,30313.0

Total of Facilities Construction
Business

Sub-total
Real Estate Business

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

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

FY2020

FY2021

FY2022

Year on year

Rate of
Change (%)

HVAC and Plumbing for
Buildings

55,29362,14659,392(2,753)(4.4)

Industrial HVAC

64,15257,36358,933

1,569

2.7

Electrical Systems

24,941

24,933

25,668734

2.9

Facility Systems

11,113

11,04011,784744

6.7

155,501

155,484

155,778294

0.2

Machinery Systems

8,973

9,666

7,661

(2,005)(20.7)

Environmental Systems

23,56025,842

25,200

(642)

(2.5)

Total of Plant & Machinery
Systems Business

32,53335,50932,861(2,648)(7.5)

188,035

190,993

188,640(2,353)

(1.2)

2,375

2,410

2,471

61

2.5

815

566

556

(10)

(1.9)

(1,158)

(781)

(802)

(20)

―

190,067

193,189

190,865(2,323)(1.2)

Total of Facilities Construction
Business

Sub-total
Real Estate Business
OthersAdjustments*

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

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

FY2020

FY2022Rate of
Change (%)

Year on year

HVAC and Plumbing for
Buildings/Industrial HVAC/Electrical Systems

21,03822,086

19,052(3,034)(13.7)

Facility Systems

2,215

2,323

2,239

(84)

(3.6)

23,253

24,40921,291(3,118)(12.8)

Machinery Systems

1,556

1,586

772

(814)

(51.3)

Environmental Systems

3,176

3,547

4,370

823

23.2

4,732

5,133

5,143

9

0.2

27,98629,543

26,434(3,109)(10.5)

Real Estate Business

866

876

844

(32)

(3.7)

Others

101

69

51

(18)

(26.3)

Adjustments

(199)

(266)

(317)

(51)

―

28,75430,22327,012(3,211)(10.6)

Total of Facilities Construction Business

Gross Profit by segment

FY2021

Total of Plant & Machinery Systems
Business
Sub-total

Total

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2
FY2022BALANCE SHEET AND STATEMENT OF CASH FLOWS

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【Financial Conditions】
Balance Sheet (Consolidated)(Millions of yen)

End of
FY 2021

Current assets

End of
FY 2022

Year on year

Rate ofchange (%)

125,742

115,512(10,230)(8.1)

Cash and deposits

42,77924,949(17,829)(41.7)

Securities

5,999

4,000

(1,999)(33.3)

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

66,761

77,141

10,37915.5

57,866

56,793(1,073)(1.9)

30,44728,010(2,436)(8.0)

79,21069,649(9,560)(12.1)

Electronically recorded obligations operating

2,588

1,667

(921)

(35.6)

Accounts payable for construction
contracts

37,93235,074(2,857)(7.5)

Non-current liabilities

10,121

11,742

1,620

16.0

Total net assets

94,27890,913(3,364)(3.6)(5,243)(5,335)(91)―

Total liabilities and net assets

183,609172,305(11,303)(6.2)

Net assets per share (yen)1,685.20

1,666.36(18.84)(1.1)

Equity ratio (%)

51.2

52.6

1.4pt.

―

Interest-bearing liabilities (consolidated)

9,205

8,074

(1,131)(12.3)

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 an increase in trade receivables,
an improvement in payment terms to trading partners, and the payment of income taxes.
・ The decrease in cash flow from investing activities was mainly due to purchases of property, plant and equipment
and intangible assets, which more than offset the sale of investment securities.
・ The decrease in cash flow from financing activities was mainly due to dividend payments and the purchase oftreasury shares based on financial and capital policies.
(Millions of yen)
FY2018FY2019FY2020

FY2021

FY2022

Cash flows from operating activities

6,786

11,940(483)

18,529(10,584)

Cash flows from investing activities(3,775)(303)(1,423)(3,384)(969)

Cash flows from financing activities(5,215)(8,955)(6,974)(7,518)(8,327)

Cash and cash equivalents
at end of period

42,61245,94637,08744,77924,949

Capital investment(including intangible assets)

6,110

2,197

2,178

1,620

2,279

Depreciation

1,340

1,643

1,700

1,587

1,511

12
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3
FY2023 FORECAST

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【Overall Forecast】
FY2023 Full-Year Forecast (Consolidated)(Millions of yen)

FY2018FY2019FY2020

FY2021

FY2022A

Initialforecast for
FY 2023
B

Increase/
Decrease
B–A

Rate ofchange(%)

Orders received

217,096

194,018

195,580

202,250

228,554

190,000(38,554)(16.9)

Balance carried forward

149,495

136,163

141,676

150,737

188,426

168,426(20,000)(10.6)Net sales

212,314207,684

190,067

193,189

190,865

210,000

19,13510.0

Gross profit

31,684

32,11028,75430,22327,01230,000

2,988

11.1

14.9

15.5

15.1

15.6

14.2

14.3

0.1

―

Gross profit margin (%)

pt.

Operating profit

10,637

10,674

7,498

9,112

5,409

7,500

2,091

38.6

Ordinary profit

11,204

11,224

8,196

9,817

6,247

8,000

1,753

28.1

Profit attributable toowners of parent

9,046

7,576

5,901

6,489

4,750

5,300

550

11.6

Regular dividends per
share (yen)

40

70

70

70

70

70

―

―

Extra dividends per share
(yen)

20

25

10

15

5

―

(5)

―

Cash dividends per share(total) (yen)

60

95

80

85

75

70

(5)

―

14

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【Forecast of Orders Received and Net Sales】
FY2023 Forecast of Orders Received andNet Sales by Segment (Consolidated)
FY2023
Orders Received Forecast

Segment(Millions of yen)

FY2023
Net sales Forecast

HVAC and Plumbing for Buildings

43,00057,000Industrial HVAC

73,00074,000Electrical Systems

25,00027,000

Facility Systems

12,00012,000153,000

170,000

Machinery Systems

12,00012,000

Environmental Systems

23,00026,00035,00038,000188,000

208,000

2,400

2,400

Others500

500

Adjustments*

(900)

(900)

190,000

210,000

Total of Facilities Construction BusinessTotal of Plant & Machinery Systems
Business
Sub Total
Real Estate Business

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 and capital policies
・ An extra dividend of 5 yen has been paid in addition to the regular dividend of 70 yen, resulting in a total annual dividend of 75 yen
・ 1,500 thousand shares of treasury shares were purchased and cancelled
・ payout ratio: 87.4%, total shareholder return: 136.4%
FY2018FY2019FY2020

September
2022

FY2021

FY 2022150.02128.51103.12115.13(13.79)85.80

Cash dividends per share:
regular dividends (yen)

40

70

70

70

35

70

Cash dividends per share:
extra dividends (yen)

20

25

10

15

―

5

Cash dividends per share (yen)

60

95

80

85

35

75

Payout ratio (consolidated) (%)

40.0

73.9

77.6

73.8

87.4

Total return ratio (%)

52.9

111.4

97.3

95.7

136.4

Number of shareholders
at end of FY

3,381

4,216

14,861

14,524

13,154

13,675

Share price at end of FY (yen)

1,210

1,211

1,453

1,398

1,585

1,464

Purchase of treasury shares(thousand shares)

1,000

1,958

1,000

1,000

80

1,500

Cancellation of treasury shares(thousand shares)

1,000

2,000

1,000

―

1,500

1,500

ROE (%)

10.3

8.6

6.6

7.0

5.1

ROA (%)

6.0

6.0

4.7

5.5

3.5

profit per share (yen)17©2023 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Shareholder Returns】

Phase1

Phase3Phase2(Millions of yen)
10,000160.0%

Value of treasury shares acquired

自己株式取得額（左軸）(left axis)
Amount of dividends (left axis)
配当金支払額（左軸）148.9%
136.4%

Total return ratio (right axis)
総還元性向（右軸）140.0%

配当性向（右軸）
Payout ratio (right axis)

2,899

8,000

120.0%

111.4%

95.7%
97.3%
2,347

6,000
1,171

3,679

1,191
73.9%

4,000

77.6%

1,438

87.4%

60.0%

2,000

←50% Payout ratio

55.5%

5,543
40.0%

40.6%

80.0%

73.8%

52.9%
40.6%

100.0%

4,568

40.0%

4,773
4,132

3,595
1,906

2,136

2016

2017

20.0%

0

0.0%
2018

2019

2020

2021

2022

18
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5
SUPPLEMENTARY MATERIALS

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

FY2019FY2020

FY2021A

FY2022
B

Diff.
B–A

Orders received (Non-consolidated: Facilities
Construction Business)

147,191

149,278

151,747

186,466

34,718Orders received from general contractors(Non-consolidated: Facilities Construction
Business)

48,23863,54462,29989,922

27,622

32.8

42.6

41.1

48.2

7.1

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) (%)

pt.

194,018

195,580

202,250

228,554

26,303

3,143

2,789

4,283

3,021

(1,261)

1.6

1.4

2.1

1.3

(0.8)
pt.

Orders received for renewal construction(Consolidated)

112,909109,585

108,561

126,147

17,586Rate of orders received for renewal
construction (Consolidated) (%)

58.2

56.0

53.7

55.2

1.5

114,208

101,147

107,855

112,556

4,701<Ref.> Net sales for renewal construction(Consolidated)pt.

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

50,00045,00040,00035,00030,00025,00020,00015,00010,0005,000
0December 2020
December 2021
December 2022

Government 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
Property nameItem of construction

Type of construction

Location

Plumbing systems

New construction work

Tokyo

NEC Fuchu Workplace New Building Construction (tentative name)

HVAC and plumbing systems

New construction workTokyo

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

Former Shimmichi Elementary School Site Utilization Plan (Hotel Wing)(tentative name)

HVAC and plumbing systems

New construction work

Kyoto

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

HVAC, plumbing, and electricalsystems

New construction work

Shizuoka

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

HVAC, plumbing, and electricalsystems

New construction work

Fukuoka

PHENITEC SEMICONDUCTOR Kagoshima Plant Building 5
3F Cleanroom Conversion Project

HVAC and electrical systems

Renovation

Kagoshima

Kasai Water Reclamation Center North Reaction Tank Mechanical Equipment
Reconstruction Project Stage 4

Water and sewage treatment
systems

RenewalTokyo

Nihombashi 1-Chome Central Type 1 Urban Redevelopment

Osaka City Museum of Fine Arts Large-scale Renovation Project* The property name is the name being used by the Company. This may differ from the name used on the construction contract.
14 other projects

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

Type of construction

Location

HVAC and plumbing systems

New construction work

Kyoto

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, and electricalsystems

New construction work

Osaka

Biofermin Pharmaceutical New Factory Construction Project

HVAC systems

New construction work

Hyogo

Toyota Technical Center Shimoyama Plumbing and Electrical
Systems Project

Plumbing and electrical systems

New construction work

Aichi

Otemachi Nomura Building

HVAC systems

Renovation

Tokyo

Yamagata Prefectural Shinjo Hospital

HVAC systems

New construction work

Yamagata

Narita Airport T3 South Side Expansion, Access Road and Other
Maintenance

HVAC and plumbing systems

Expansion

Chiba

Heiwado Taga Delica Center Construction

HVAC and plumbing systems

New construction work

Shiga

SUMCO TECHXIV Nagasaki Factory N6 Building Extension

HVAC and plumbing systems

Expansion

Nagasaki

Waste treatment facility

New construction work

Akita

Nidec Corporation Mukomachi Project C Building Construction
and Other Works
Kawanishi City Medical Center

SU Kaihatsu New Incinerator Construction Project* The property name is the name being used by the Company. This may differ from the name used on the construction contract.

3 other projects

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

FY2021

FY2022

Office4

3

6School building /auditorium

1

―

2

Hospital / clinic

3

1

1

Complex building

―

1

1

Hotel / ryokan

―

―

1

Store

―

1

―

Public hall and cultural
center―

Factory

6

Research institute3

Other building interiors

3

Railway / airport

1

―

1

Water treatment plant /sewage plant

5

2

2

Waste processing facility

1

2

―

27 Projects（48,483 million yen)
*Orders received from
customers: 12 Projects
Orders received fromgeneral contractors:
15 Projects

1
7
2
5

25 Projects（47,103 million yen)
*Orders received from
customers: 11 Projects
Orders received fromgeneral contractors:
14 Projects

―
6
3
2

25 Projects（63,103 million yen)
*Orders received from
customers: 9 Projects
Orders received fromgeneral contractors:
16 Projects

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【Operating Results】
Century 2025 Results (Consolidated)<Orders Received and Net Sales>(Millions of yen)Phase2Phase1

Phase3

Orders received
200,000

Net sales
Balance carriedforward150,000

100,000

50,000

0
2017

2018

2019

2020

2021

2022

2023
(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 income (left axis)
営業利益（左軸）

28,00014.0

経常利益（左軸）
Ordinary income (left axis)

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
2017

2018

2019

2020

2021

2022

2023
(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 May 12. 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.