The 3rd Quarter FY2023
Summary of Financial Results
February 14, 2024

The 3rd Quarter FY2023 Financial Summary☆Key Points of Financial Results
Orders received, net sales, and gross profit all reached their highest levels ever in the 3rd quarter
Orders received increased year on year on the back of an increase in the scale of properties in Industrial HVAC and orders for large-scaleconstruction projects in Environmental Systems
Net sales increased due mainly to progress in the large volume of works carried over from the previous year, largely for Industrial HVAC and Facility
Systems
The increase in gross profit was due to an improvement in the profit margin for works carried over from the previous year in Facilities Construction,compared to the profit margin at the time of ordering, in addition to the increase in net sales<Orders> 187.163 billion yen (181.663 billion yen in the same period of the previous fiscal year)● Orders declined year on year in Facilities Construction due to a fallback for large-scale project orders in HVAC and Plumbing for Buildings received in
Q3 FY2022, but increased year on year in Industrial HVAC on the back of several orders for large-scale projects, including semiconductor-related
projects● In Plants & Machinery Systems, orders increased due to the effect of large-scale project orders for waste treatment and other facilities inEnvironmental Systems during the first half of the fiscal year
<Net sales> 149.611 billion yen (125.713 billion yen in the same period of the previous fiscal year)● In Facilities Construction, net sales increased due to steady progress in works carried over from the previous year, largely for semiconductor-related
projects in Industrial HVAC, while net sales for Facility Systems also rose, due mainly to the completion of office relocation project management
services● In Machinery Systems, net sales increased due to progress in works carried over from the previous year, largely in conveyance equipment for
manufacturing facilities<Gross profit> Gross profit amounted to 21.929 billion yen (16.708 billion yen in the same period of the previous fiscal year)● In Facilities Construction, gross profit increased due to an improvement in the profit margin for works carried over from the previous year compared tothe profit margin at the time of ordering, in addition to the increase in net sales● Gross profit also increased in Machinery Systems due to higher net sales, but profitability remained low● Gross profit rose in Environmental Systems due to the increase in net sales<FY2023 consolidated results forecasts> (Compared with the forecasts announced on November 10, 2023)● Orders received: 220 billion yen (+10 billion yen); Net sales: 220 billion yen (+5 billion yen); Ordinary profit: 11.5 billion yen (+1.5 billion yen)
● Orders received are forecast to increase due to the growing scale of project orders amid strong construction demand● Net sales are forecast to increase due to smooth progress on construction projects expected to continue in the 4th quarter, as well as the expected
conversion of 30% of the balance of orders carried forward, which exceeds 225 billion yen, to sales during this fiscal year
● Ordinary profit is forecast to increase due to higher net sales and an expected improvement in the profit margin for works carried over from theprevious year
<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 18, 2023; Completed the repurchase of 819 thousand shares by December 31, 2023
● Expected payout ratio: 50.5%, total return ratio: 84.2%

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Contents

1

The 3rd Quarter FY2023 Results2

The 3rd Quarter FY2023
Balance Sheet and Statement of Cash Flows3

FY2023 Forecast

4

Shareholder Returns

5

Supplementary Materials
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1
FY2023 3Q RESULTS

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【Overall Results】
FY2023 3Q Results (Consolidated)(Millions of yen)

December
FY2021

December
FY2022

December
FY2023

Year on year

Rate of
Change (%)

Orders received

145,794

181,663

187,163

5,499

3.0

Balance carried forward

151,747

206,687

225,977

19,290

9.3

Net sales

135,723

125,713

149,61123,89719.0

Completed construction contracts

133,851

123,786

147,677

23,890

19.3

Real estate business and others

1,871

1,927

1,934

6

0.4

19,95916,70821,929

5,220

31.2

Completed construction contracts

19,164

15,973

21,135

5,162

32.3

Real estate business and others

794

734

793

58

8.0

14.7

13.3

14.7

1.4pt.

―

Selling, general and administrative expenses

15,00915,615

15,930315

2.0Operating profit

4,949

1,092

5,998

4,905

449.0

594

844

982

137

16.3

5,544

1,937

6,980

5,043

260.4

(87)

(164)

218

382

―

3,684

983

4,861

3,877

394.0

Gross profit

Gross profit margin (%)

Non-operating profit and loss
Ordinary profit
Extraordinary profit and loss(loss)
Profit attributable to owners of parent

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

FY2021

FY2022

FY2023

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

Orders received

56,02340,48249,28856,456

46,974

71,93962,74946,89052,63172,74961,781

Net sales

38,73745,33251,652

57,46633,45040,05952,20365,152

40,727

48,73260,152Gross profit

4,661

6,396

8,901

10,264

3,948

5,213

7,546

10,304

5,231

6,738

9,959

Gross profit margin (%)

12.0

14.1

17.2

17.9

11.8

13.0

14.5

15.8

12.8

13.8

16.6

Selling, general andadministrative expenses

4,940

5,092

4,976

6,101

5,209

5,212

5,193

5,987

5,250

5,437

5,242

Operating profit (loss)

(278)

1,303

3,924

4,162

(1,260)

0

2,352

4,316

(18)

1,300

4,716

(0.7)

2.9

7.6

7.2

(3.8)

0.0

4.5

6.6

(0.0)

2.7

7.8

Ordinary profit (loss)

(13)

1,324

4,233

4,272

(860)

109

2,688

4,310

359

1,519

5,102

Extraordinary profit andloss(loss)

(1)

11

(97)

(215)

25

(170)

(18)

852

203

66

(51)

Profit attributable toowners of parent (loss)

(35)

899

2,820

2,805

(637)

(132)

1,754

3,766

339

1,070

3,452

Operating profit margin (%)

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

December
FY2021

Segment

December
FY2022

December
FY2023

Year on year

Rate of
Change (%)

HVAC and Plumbing for Buildings

39,80862,885

37,139(25,745)(40.9)

Industrial HVAC

40,64864,65079,50014,84923.0

Electrical Systems

22,532

21,214

21,376161

0.8

Facility Systems

7,838

9,566

11,446

1,879

19.7

110,828

158,316

149,462(8,854)(5.6)

Machinery Systems

7,134

7,320

8,043

722

9.9

Environmental Systems

26,25914,48927,902

13,412

92.6

Total of Plants & Machinery Systems
Business

33,39421,80935,945

14,13564.8

Sub-total

144,223

180,126

185,407

5,281

2.9

1,800

1,852

1,861

8

0.5

Others

399

366

446

80

21.8

Adjustments*

(628)

(681)

(552)

129

―

145,794

181,663

187,163

5,499

3.0

Total of Facilities Construction
Business

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
FY2021

Segment

December
FY2022

December
FY2023

Year on year

Rate of
Change (%)

HVAC and Plumbing for Buildings

42,08339,056

39,844787

2.0

Industrial HVAC

41,91838,50455,80017,296

44.9

Electrical Systems

17,782

17,03917,332292

1.7

Facility Systems

6,993

7,239

9,967

2,727

37.7

108,777

101,841

122,944

21,103

20.7

Machinery Systems

7,528

5,228

7,421

2,193

41.9

Environmental Systems

17,812

16,943

17,475531

3.1

Total of Plant & Machinery
Systems Business

25,341

22,172

24,897

2,724

12.3

134,118

124,013

147,841

23,828

19.2

1,800

1,852

1,861

8

0.5

Others

392

368

434

66

18.1

Adjustments*

(589)

(520)

(526)

(5)

―

135,723

125,713

149,61123,89719.0

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
FY2021

December
FY2022

December
FY2023

HVAC and Plumbing for Buildings/
Industrial HVAC/Electrical Systems

14,948

11,715

15,990

4,275

36.5

Facility Systems

1,191

1,266

1,600

333

26.4

16,13912,981

17,591

4,609

35.5

Machinery Systems

1,379

466

703

236

50.6

Environmental Systems

1,902

2,792

3,043

251

9.0

3,281

3,259

3,746

487

15.0

19,420

16,241

21,337

5,096

31.4

Real Estate Business

724

664

730

65

9.9

Others

25

12

33

20

162.9

(210)

(210)

(172)

37

―

19,95916,70821,929

5,220

31.2

Gross Profit by segment

Segment

Total of Facilities Construction BusinessTotal of Plants & Machinery Systems Business
Sub-total

Adjustments
Total

Year onyear

Rate of
Change (%)

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2
FY2023 3Q
BALANCE SHEET AND STATEMENT OF CASH FLOWS

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【Financial Conditions】
Balance Sheet (Consolidated)
End of
FY2022A

Current assets(Millions of yen)

December
2023
B

Diff.
B－A

Rate ofchange (%)

December
2022

115,512112,212(3,299)(2.9)

113,073

Cash and deposits

24,94920,531(4,418)(17.7)

32,193

Securities

4,000

―

(4,000)―4,999

Notes receivable – trade,electronically recorded monetaryclaims –operating, accounts
receivable from completed
construction contracts and other,and contract assets

77,141

79,5682,427

3.1

60,07456,79360,8994,106

7.2

56,69628,01032,576

4,565

16.3

28,914

69,64965,060(4,588)(6.6)

71,449

Electronically recorded obligations- operating

1,667

3,811

2,144

128.6

3,145

Accounts payable on construction
contracts

35,07435,446371

1.1

37,617

Non-current liabilities

11,742

13,849

2,107

17.9

10,528

Total net assets

90,913

94,202

3,288

3.6

87,792(5,335)(4,473)862―(4,952)

Total liabilities and net assets

172,305

173,112806

0.5

169,770

Book-value per share (yen)1,666.36

1,750.94

84.58

5.1

1,601.57

Equity ratio (%)

52.6

54.3

1.7pt.

―

51.6

Interest-bearing liabilities (consolidated)

8,074

6,016

(2,057)(25.5)

Non-current assets
Investment securities

Current liabilities

Treasury shares

7,202 11©2024 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【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 is mainly due to an increase in trade receivables
・The increase in cash flow from investing activities is mainly due to the 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)
FY2019FY2020

FY2021

FY2022

December
FY2023

December
FY2022

Cash flows from operating
activities

11,940(483)

18,529(10,584)(1,310)(1,471)

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

(969)

4,376

(400)

Cash flows from financing
activities(8,955)(6,974)(7,518)(8,327)(7,636)(8,789)Cash and cash equivalents
at end of period

45,94637,08744,77924,94920,531

34,19312©2024 SANKI ENGINEERING CO., LTD. All Rights Reserved.

3
FY2023 FORECAST

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【Overall Forecast】

FY2023 Full-Year Forecast (Consolidated)
FY2023
forecast
FY2020

FY2021(Millions of yen)
FY2023
forecast(Interim forecast (Interim forecast
from February
from November
14, 2024)
10, 2023)

FY2022

Increase/
Decrease
B–A

Rate of
Change(%)

B

A

Orders received

195,580

202,250

228,554

210,000

220,000

10,000

4.8

Balance carried forward

141,676

150,737

188,426

183,426

188,426

5,000

2.7

Net sales

190,067

193,189

190,865

215,000

220,000

5,000

2.3

Gross profit

28,75430,22327,01232,50033,500

1,000

3.1

15.1

15.6

14.2

15.1

15.2

0.1

―

Gross profit margin (%)

pt.

Operating profit

7,498

9,112

5,409

9,500

11,000

1,500

15.8

Ordinary profit

8,196

9,817

6,247

10,00011,500

1,500

15.0

Profit attributable to owners ofparent

5,901

6,489

4,750

6,700

7,500

800

11.9

Regular dividends per share
(yen)

70

70

70

70

70

―

―

Extra dividends per share (yen)

10

15

5

―

―

―

―

Cash dividends per share (total)
(yen)

80

85

75

70

70

―

―

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

48,00060,000Industrial HVAC

87,00080,000Electrical Systems

25,00027,000

Facility Systems

14,00014,000174,000

181,000

Machinery Systems

12,00011,000

Environmental Systems

32,00026,00044,00037,000218,000

218,000

2,400

2,400

Others500

500

Adjustments*

(900)

(900)

220,000

220,000

Total of Facilities Construction BusinessTotal of Plants & 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
・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 18, 2023; Completed the repurchase of 819 thousand shares by
December 31, 2023
・Expected payout ratio: 50.5%, total return ratio: 84.2%
FY2019Profit per share (yen)FY2020

FY2021

FY2023(Forecast)

FY2022128.51103.12115.1385.80

138.48Cash dividends per share:
regular dividends (yen)

70

70

70

70

70

Cash dividends per share:
extra dividends (yen)

25

10

15

5

―

Cash dividends per share (yen)

95

80

85

75

70

Payout ratio (consolidated) (%)

73.9

77.6

73.8

87.4

50.5

Total return ratio (%)

111.4

97.3

95.7

136.4

84.2

Number of shareholders at end of FY

4,216

14,861

14,524

13,675

Share price at end of FY (yen)

1,211

1,453

1,398

1,464

Purchase of treasury shares(thousand shares)

1,958

1,000

1,000

1,500

1,500

Cancellation of treasury shares(thousand shares)

2,000

1,000

―

1,500

1,500

ROE (%)

8.6

6.6

7.0

5.1

8.0

ROA (%)

6.0

4.7

5.5

3.5

6.6

17

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【Shareholder Returns】

Phase1

Phase2Phase3(Millions of yen)
Value of treasury shares acquired

10,000160.0%

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%

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

136.4%

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

2,550

100.0%

84.2%

80.0%

87.4%
1,171

3,679
1,191
73.9%

4,000

77.6%

1,438

73.8%

60.0%
52.9%

50.5%

40.6%
55.5%

2,000

40.0%

40.6%

4,568

40.0%

4,773
4,132

3,595

1,906

2,136

2016

2017

←50% Payout ratio

5,543

3,761

20.0%

0

0.0%
2018

2019

2020

2021

2022

2023

(Forecast)

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5
SUPPLEMENTARY MATERIALS

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【Orders Received】
Orders Received by Type(Millions of yen)
FY2020

FY2021

FY2022

December
FY2022A

December
FY2023
B

Diff.
B–A

Orders received (Non-consolidated: Facilities
Construction Business)

149,278

151,747

186,466

151,743

142,129(9,614)

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

63,54462,29989,92278,75874,127(4,631)

42.6

41.1

48.2

51.9

52.2

0.3

195,580

202,250

228,554

181,663

187,163

5,499

2,789

4,283

3,021

2,683

2,181

(501)

1.4

2.1

1.3

1.5

1.2

(0.3)

Orders received for renewal construction(Consolidated)

109,585

108,561

126,147

96,555

101,131

4,576

Rate of orders received for renewal
construction (Consolidated) (%)

56.0

53.7

55.2

53.2

54.0

0.8

101,147

107,855

112,556

73,61780,484

6,867

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

45,00040,00035,00030,00025,00020,00015,00010,0005,000
0December 2021
December 2022
December 2023

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

Construction of Toyota Motor Corporation Myochi 1C Battery Plant

HVAC, plumbing, and electricalsystems

New construction work

Aichi

New Construction of Yoshindo Third Formulation Plant

HVAC and plumbing systems

New construction work

ToyamaOsaki Wide-Area Tobu Clean Center

Waste treatment facility

Renovation

Miyagi

Nayoro District General Waste Intermediate Processing Facility Construction
Project (tentative name)

Waste treatment facility

New construction work

Hokkaido

Asakawa Water Reclamation Center Sludge Incineration Equipment
Reconstruction Project

Water and sewage treatment
systems

RenewalTokyo

Panasonic Energy Nishikadoma R&D Building New Construction Project

HVAC and plumbing systems

New construction work

Osaka

Nippon Life Shijo Building New Construction Project

HVAC, plumbing, and electricalsystems

New construction work

Kyoto

Conveyance systems

New construction work

Aichi

Daido Co., Ltd. Logiport Nagoya Parts Inventory System* The property name is the name being used by the Company. This may differ from the name used on the construction contract.

7 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

Construction of New Optical Equipment Cleanroom in Utsunomiya Plant
Building B

HVAC systems

Renovation

Tochigi

New Construction of Toyota Industries Corporation Ishihama Plant E02 Plant

HVAC systems

New construction work

Aichi

SUMCO TECHXIV Nagasaki Factory N6 Building Extension, 6F Installation
Project

HVAC and electrical systems

Renovation

NagasakiConstruction of New Head Office Building for Docon Co., Ltd.

HVAC and plumbing systems

New construction work

Hokkaido

020 Overhaul No. 667 Okubo Water Purification Plant West 3B Scraper
Renovation

Water and sewage treatment
systems

RenewalSaitama

020 Overhaul No. 668 Okubo Water Purification Plant West 3B Flocculator
Renovation

Water and sewage treatment
systems

RenewalSaitama

RIKEN Brain Science Central Research Building Renovation Phase 3
Machinery Construction Project

HVAC and plumbing systems

Renovation

Saitama

Ibaraki City Hall Site Area Maintenance Project

HVAC and plumbing systems

New construction work

Osaka

Shimoyama Phase IV Facilities Construction Project – Building 3

HVAC and plumbing systems

New construction work

Aichi

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

3 other project23©2024 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Orders Received】
Main Large-Scale Projects Received over 1 Billion Yen (by Building Use)
December FY2021

December FY2022

December FY2023

Office2

61Factory2

6

10

Research institute

―

3

1

Hospital / clinic

1

1

―

Other building
interiors

4

13 Projects

1(28,840 million yen)

22 Projects(55,938 million yen)―

School building /auditorium―

Complex building―

Hotel / ryokan

―

1

―

Waste processing
facility2―2

Water treatment
plant / sewage plant

2

1

1

* Orders received from
customers:10 projects* Orders received fromgeneral contractors:
3 project

2

1* Orders received from
customers: 6 projects* Orders received fromgeneral contractors:
16 projects――

15 Projects(69,022 million yen)
* Orders received from
customers: 4 projects* Orders received fromgeneral contractors:
11 projects

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

Phase3(Millions of yen)Orders received
200,000

Net sales
Balance carriedforward150,000

100,000

50,000

0
2017

2018

2019

2020

2021

2022

2023
(Forecast)25©2024 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Operating Results】

Century 2025 Results (Consolidated)<Profit>Phase2Phase1

Phase3(Millions of yen)（％）

36,00018.0

32,00016.0

28,000

14.0

Gross profit (left axis)
売上総利益（左軸）
Operating profit (left axis)
営業利益（左軸）
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
2017

2018

2019

2020

2021

2022

2023
(Forecast)

26©2024 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 14. 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©2024 SANKI ENGINEERING CO., LTD. All Rights Reserved.