May 13, 2022

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2022
<Japanese GAAP>
Listed company:
SANKI ENGINEERING CO., LTD.
Listed stock exchange: Tokyo
Securities code:
1961
URL:
https://www.sanki.co.jp/
Representative:
Hirokazu Ishida, President and Representative Director
Contact:
Yoshio Kawabe, Director, Managing Executive Officer, General Manager of the Accounting
Division
TEL: +81-3-6367-7084
Scheduled date of annual general meeting of shareholders:June 23, 2022
Scheduled date to commence dividend payments:
June 24, 2022
Scheduled date to file annual securities report:
June 23, 2022
Preparation of explanatory materials for financial results: Yes
Holding of a briefing on financial results: Yes (for securities analysts and institutional investors)(Amounts of less than 1 million yen are truncated)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022
(April 1, 2021 to March 31, 2022)(1) Consolidated operating results(% figures show year-on-year change)

Net sales

Operating profit

Fiscal year ended

Millions of yen

March 31, 2022

193,189

1.6

9,112

21.5

March 31, 2021

190,067

(8.5)

7,498

(29.7)(Note) Comprehensive income:% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen%

Millions of yen

%

9,817

19.8

6,489

10.0

8,196

(27.0)

5,901(22.1)

Fiscal year ended March 31, 2022: ¥ 8,485 million [(22.3%)]
Fiscal year ended March 31, 2021: ¥10,924 million [133.1%]

Profit per share

Profit per
share – diluted

Return on equity

Ratio of ordinary
profit to total assets

Ratio of operating
profit to net sales

Fiscal year ended

Yen

Yen

%

%

%

March 31, 2022

115.13114.55

7.0

5.5

4.7

March 31, 2021

103.12102.60

6.6

4.7

3.9

(2) Consolidated financial position
Total assets
As ofShareholders’ equity
ratio

Net assets

Net assets per share

Millions of yen

Millions of yen%

Yen

March 31, 2022

183,609

94,27851.2

1,685.20

March 31, 2021

171,313

91,69953.4

1,611.76(Reference) Shareholders’ equity: As of March 31, 2022: ¥93,967 million
As of March 31, 2021: ¥91,416 million(Note) The Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29; March 31,2020), etc. has been applied from the beginning of the current consolidated fiscal year. The figures for the fiscal year ended
March 31, 2022, reflect the application of this accounting standard.

(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2022

18,529(3,384)(7,518)44,779March 31, 2021

(483)

(1,423)(6,974)37,087

2. Dividends
Annual dividends
Third
Fiscal yearquarter-end
end

Total cash
dividends(Total)Payout ratio(Consolidated)

Ratio ofdividends to
net assets(Consolidated)

%

%

First
quarter-end

Secondquarter-end

Fiscal year ended

Yen

Yen

Yen

Yen

March 31, 2021

－

35.00

－

45.00

80.00

4,568

77.6

5.1

March 31, 2022

－

35.00

－

50.00

85.00

4,773

73.8

5.2

Fiscal year
ending March
31, 2023(Forecast)

－

35.00

－

35.00

70.00

Total

Yen Millions of yen

56.6(Note) Breakdown of end-FY3/21 dividend: Ordinary dividend ¥35; Extraordinary dividend ¥10
Breakdown of end-FY3/22 dividend: Ordinary dividend ¥35; Extraordinary dividend ¥15

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2023
(April 1, 2022 to March 31, 2023)(% figures show year-on-year change for the full year)
Net sales
Millions of yen
Full year

200,000

Operating profit% Millions of yen% Millions of yen

3.5

4.2

9,500

Profit attributable toowners of parent

Ordinary profit

10,000% Millions of yen
1.9

6,900

Profitper share
%

Yen

6.3

123.74

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scopeof consolidation): None
New: (Company name:)
Excluded: (Company name:)(2) Changes in accounting policies and estimates, and retrospective restatements(i) Changes in accounting policies in accordance with revision of accounting standards: Yes(ii) Changes in accounting policies other than item (i) above: None(iii) Changes in accounting estimates: None(iv) Retrospective restatements: None
(Note) For details, please see the accompanying materials on p. 18 “4. Consolidated financial statements and related notes(5) Notes on the consolidated financial statements (Changes in accounting policies).”(3) Number of shares issued (common stock)(i) Number of shares outstanding at the end of the period (including treasury shares)
As of March 31, 2022

59,661,156 shares

As of March 31, 2021

59,661,156 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2022

3,900,458 shares

As of March 31, 2021

2,942,442 shares(iii) Average number of shares during period
Fiscal year ended March 31, 2022

56,363,161 sharesFiscal year ended March 31, 2021

57,230,406 shares(Reference) Summary of non-consolidated financial results
1. Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2022
(April 1, 2021 to March 31, 2022)(1) Non-consolidated operating results(% figures show year-on-year change)
Net sales

Operating profit

Fiscal year ended

Millions of yen% Millions of yen

March 31, 2022

173,544

2.8

March 31, 2021

168,879(9.2)

Ordinary profit

Profit%Millions of yen%

Millions of yen

%

7,288

39.0

9,656

24.0

6,952

10.9

5,245

(38.0)

7,784(25.2)

6,266(17.5)

Profit per
share – diluted

Profit per share
Fiscal year ended

Yen

Yen

March 31, 2022

123.36122.73

March 31, 2021

109.50108.96(2) Non-consolidated financial position
Total assets
As ofShareholders’ equity
ratio

Net assets

Net assets per share

Millions of yen

Millions of yen%

Yen

March 31, 2022

171,31085,29949.6

1,524.18

March 31, 2021

159,141

83,00252.0

1,458.43(Reference) Shareholders’ equity: As of March 31, 2022: ¥84,989 million
As of March 31, 2021: ¥82,720 million(Note) The Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29; March 31,2020), etc. has been applied from the beginning of the current fiscal year. The figures for the fiscal year ended March 31,
2022, reflect the application of this accounting standard.

2. Forecast of Non-Consolidated Financial Results for the Fiscal Year Ending March 31, 2023
(April 1, 2022 to March 31, 2023)(% figures show year-on-year change for the full year)
Net sales
Millions of yen
Full year

180,000

Operating profit% Millions of yen
3.7

7,500

Ordinary profit%

Millions of yen

2.9

9,500

Profitper share

Profit% Millions of yen
(1.6)

6,900

%

Yen

(0.8)

123.74* The summary of financial results is not subject to inspection by a certified public accountant or an audit corporation.
* Proper use of earnings forecasts, and other special matters
The forward-looking statements such as earnings forecasts contained in these materials are based on the information
available at the time they were prepared, and the actual results could differ from forecasts depending on a variety offactors. For matters related to the above earnings forecasts, please see the accompanying materials on p. 5 “1. Overview
of operating results and others, (4) Outlook.”
Disclaimer: This is a Japanese-English translation of the summary of financial statements of the Company produced foryour convenience. Officially, only the Japanese version is assumed to be the summary of financial statements of theCompany. This summary does not constitute any guarantee and the Company will not compensate any losses and/or damage
stemming from actions taken based on these statements. In the case that there is any discrepancy between the Japanese andEnglish versions, the Japanese version is assumed to be correct.

[Attached Materials]

Index
1. Overview of operating results and others ............................................................................................................................... 2(1) Overview of operating results in the fiscal year under review ........................................................................................ 2(2) Overview of financial position in the fiscal year under review ....................................................................................... 3(3) Overview of cash flows in the fiscal year under review .................................................................................................. 4(4) Outlook ........................................................................................................................................................................... 5
2. Management policy, operating environment, and issues to be addressed ............................................................................. 5(1) Basic management policy ................................................................................................................................................ 5(2) Operating environment and issues to be addressed ......................................................................................................... 7
3. Basic view on selection of accounting standards ............................................................................................................... 10
4. Consolidated financial statements and related notes .............................................................................................................11(1) Consolidated balance sheets .............................................................................................................................................11(2) Consolidated statements of income and comprehensive income ................................................................................... 13(3) Consolidated statements of changes in equity ............................................................................................................... 15(4) Consolidated statements of cash flows ............................................................................................................................ 17(5) Notes on consolidated financial statements ................................................................................................................... 18(Notes on premise of going concern) ............................................................................................................................... 18(Changes in accounting policies) ..................................................................................................................................... 18(Changes in presentation method) .................................................................................................................................. 19(Segment information, etc.) ............................................................................................................................................. 20(Per share information) .................................................................................................................................................. 23(Important post balance sheet events) ............................................................................................................................ 23
5. Reference information ........................................................................................................................................................ 24
Results reference information (YoY comparison) .......................................................................................................... 24

1

1. Overview of operating results and others(1) Overview of operating results in the fiscal year under review
During the consolidated fiscal year under review, the Japanese economy entered a recovery phase albeit at a moderate pace as COVID19 vaccinations proceeded, although social activities were sluggish from the impact of the state of emergency declaration and quasi-stateof emergency measures. However, uncertainly over the outlook remained, due to supply constraints such as a shortage of semiconductors
and a surge in raw materials prices, tightening of US monetary policy, the Russia–Ukraine situation, and other factors.
With respect to construction investment, there were positive moves notably in private-sector investment, indicating firmness in capital
investment.
In this environment, the Group focused its efforts in the final fiscal year of the three-year medium-term management plan “Century
2025” Phase 2 on pursuing further the Phase 1 measures for enhancing quality and on implementing key priority initiatives of Phase 2
to enhance reliability, through disclosure of financial and capital policies, disclosure of ESG policy, and strengthening of information
dissemination capabilities. Additionally, the Group worked on strengthening further its corporate governance and made every effort toachieve sustainable growth and improvement of medium- to long-term corporate value based on full commitment to corporate
governance.
As a result, the Group’s business performance in the consolidated fiscal year under review was as follows.
(Millions of yen)
FY2020

FY2021

YoY change

YoY change(%)

Orders received

195,580

202,250

6,670

3.4%

Balance carried forward

141,676

150,737

9,061

6.4%

Net sales

190,067

193,189

3,121

1.6%

28,75430,223

1,469

5.1%

15.1%

15.6%

0.5%

7,498

9,112

1,614

3.9%

4.7%

0.8%

8,196

9,817

1,620

4.3%

5.1%

0.8%

5,901

6,489

587

3.1%

3.4%

0.3%

Gross profit
Margin (%)
Operating profit
Margin (%)
Ordinary profit
Margin (%)
Profit attributable to ownersof parent
Margin (%)

Main factors behind YoYchangeAs stated in the next
section, “Operating
results of major
segments”

21.5%
19.8%

10.0%

(Note) Profit margins are the rate of return on net sales.
<Operating results of major segments>〇Facilities Construction BusinessThis business includes HVAC and Plumbing for Buildings, Industrial HVAC (centered on air-conditioning systems for factories),
Electrical Systems and Facility Systems businesses, etc.
There was an increase in orders received, driven by orders received for large-scale construction projects for industrial HVAC andelectrical systems. Net sales were essentially unchanged from the same period of the previous year, while segment profit
increased due partly to improved profit margin of construction works carried forward.
(Millions of yen)
YoY change

YoY change (%)

Orders received

FY2020156,768

160,504

3,736

2.4%

Net sales

155,501

155,484(17)(0.0%)

7,677

8,825

1,147

14.9%

Segment profit

2

FY2021〇Machinery Systems BusinessThis business mainly includes conveyance systems and manufacturing and sales business related to transportation equipment.
Compared with the same period of the previous year, both orders received and net sales increased, and segment loss improved.
(Millions of yen)
FY2020

FY2021

YoY change

YoY change (%)

Orders received

7,858

8,914

1,055

13.4%

Net sales

8,973

9,666

693

7.7%

Segment profit (loss)

(393)

(193)

200

－

〇Environmental Systems BusinessThis business mainly includes operations related to water and sewage facilities and waste treatment facilities ordered bygovernment agencies.
Orders received increased, attributable largely to contracts received for the large-scale maintenance and management business andorders received for waste treatment facility construction. Net sales increased due to progress in construction projects carriedforward since the start of the fiscal year, while segment profit increased, reflecting higher net sales.
(Millions of yen)
FY2020

FY2021

YoY change

YoY change (%)

Orders received

28,71030,640

1,929

6.7%

Net sales

23,56025,842

2,282

9.7%

20

184

164

783.1%

Segment profit〇Real Estate BusinessThis business mainly includes leasing operations for real estate holdings and building management.
Tenant rental income increased, resulting in higher sales and profits.
(Millions of yen)
FY2020

FY2021

YoY change

YoY change (%)

Orders received

2,375

2,410

34

1.5%

Net sales

2,375

2,410

34

1.5%

777

798

21

2.8%

Segment profit(2) Overview of financial position in the fiscal year under review(Millions of yen)

Current
assetsNon-current
assetsTotal assets
Current
liabilities
Non-current
liabilities
Total
liabilities

Total net
assets

End-FY2020

End-FY2021

YoY change

YoY change(%)

116,054

125,742

9,688

8.3%

55,25857,866

2,607

4.7%

171,313

183,609

12,296

7.2%

67,882

79,21011,327

16.7%

11,731

10,121(1,610)(13.7%)

79,61489,331

9,717

12.2%

91,69994,278

2,578

3

2.8%

Main factors behind YoY change
Increase in cash and deposits due torecovery of trade receivables; increase inaccounts receivable, which are included
in “Other” under current assets, as aresult of application of the AccountingStandard for Revenue Recognition.
Contract liabilities increased with theapplication of the Accounting Standard
for Revenue Recognition.

Increase in retained earnings due toposting of profit attributable to ownersof parent; increase in valuationdifference on available-for-salesecurities due to rise in their market
prices.

(3) Overview of cash flows in the fiscal year under review(Millions of yen)
FY2020Cash and cash equivalents at
beginning of period

FY2021

Reasons for cash flow changes in FY2021

45,94637,087

Cash flows from operating activities(483)

18,529Cash flows from investing activities(1,423)(3,384)

Cash flows from financing activities(6,974)(7,518)

Effect of exchange rate changes oncash and cash equivalents, etc.

2164Cash and cash equivalents at end of
period37,08744,779Mainly due to progress in recovery of tradereceivables.
Mainly due to purchases of securities and theacquisition of property, plant and equipment.
Mainly due to the purchase of treasury shares anddividend payments.

Trends in the Group's cash flow indicators are shown below.
Fiscal year ended
March 31, 2019
Shareholders’ equity
ratio
Marked-to-market
equity ratio
Ratio of interest-bearing
liabilities to cash flow
Interest coverage ratio

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

45.8%

48.2%

53.4%

51.2%

38.8%

40.6%

50.6%

45.4%

2.3 years

1.2 years―

0.7 year

47.4X

94.5X

―

164.4X

Shareholders' equity ratio: shareholders' equity / total assets
Marked-to-market equity ratio: market capitalization / total assets
Ratio of interest-bearing liabilities to cash flow: interest-bearing liabilities / operating cash flow
Interest coverage ratio: operating cash flow / interest payment* All indicators have been calculated based on consolidated financial data.
* Market capitalization is calculated by multiplying the closing share price as of the end of the fiscal year by the
number of issued shares as of the end of the fiscal year.
* For operating cash flow, cash flow from operating activities in the consolidated cash flow statement has been used.
Interest-bearing liabilities include all liabilities declared in the consolidated balance sheet for which interest is paid.
For interest payment, the amount of interest paid according to the consolidated cash flow statement is used.
* The ratio of cash flow to interest-bearing liabilities and the interest coverage ratio have been omitted for the fiscal
year ended March 31, 2021, because operating cash flows were in the negative.

4(4) Outlook
In FY2022, which is the first year of the “Century 2025” Phase 3 medium-term management plan, the Group will steadily executethe plan to be the “Company of Choice” and work toward achieving the financial performance targets. Consolidated earnings forecasts
are as follows.
FY2022 consolidated earnings forecasts(Reference) FY2021 consolidated results

Orders received¥200 billion¥202.2 billion

Net sales¥200 billion¥193.1 billion

Operating profit¥9.5 billion¥9.1 billion

Ordinary profit¥10 billion¥9.8 billion

Profit attributable toowners of parent¥6.9 billion¥6.4 billion

Note: Figures rounded down to the nearest hundred million yen

2. Management policy, operating environment, and issues to be addressed(1) Basic management policy(i) Sanki Engineering Group management philosophy
The Sanki Engineering Group Management Philosophy is a comprehensive statement describing the Sanki Engineering Group’s
purpose in society and defining how its officers and employees should be. The Group calls this “the Sanki Standard” and has beenpromoting it both within and outside the Group.

Management Philosophy - Sanki Engineering Group(Sanki Standard)
We create comfortable environments through engineering and widely contribute to social development.
We will refine our skills and wisdom with the aim of increasing client satisfaction.
We will place significance on communication and mutual respect.
We will remain aware that we are a member of society and will act accordingly.

Guided by this management philosophy, the Group has formulated “Century 2025,” a long-term vision extending for 10 years until
FY2025, which marks the 100th anniversary of the Group’s foundation, consisting of the following three phases of the medium-term
management plan through which the Group seeks to become “the Company of Choice” for all stakeholders.
・“Century 2025” Phase 1 (FY2016–FY2018): 3-year period to enhance quality
・“Century 2025” Phase 2 (FY2019–FY2021): 3-year period to enhance reliability
・“Century 2025” Phase 3 (FY2022–FY2025): 4-year period to become “the Company of Choice”

5

(ii) Vision for 2050 (ultra-long-term vision)
In conjunction with formulation of the “Century 2025” Phase 3 plan, which starts in FY2022, the Group established its ultra-longterm vision for 2050, determined the basic policies relating to sustainability, and adopted Sanki’s Carbon-Neutral Declaration.

Vision for 2050
Sanki, “The Enduring Company of Choice”
Striving to be a company that contributes to the realization of a sustainable world by using engineering tosolve social issues such as carbon neutrality and create a pleasant environment

Sustainability Policies
Aiming to realize a strong business base and a sustainable society by “creating comfortable environments
through engineering and widely contributing to social development”

Sanki’s Carbon-Neutral Declaration
The Sanki Engineering Group is making serious efforts to address the climate change crisis facing theworld and aims to achieve carbon neutrality for the Group’s own GHG emissions (Scope 1 and 2) by 2030
and for GHG emissions including the supply chain (Scope 1, 2, and 3) by 2050.
Further, issues that were identified from various perspectives were assessed from the points of view of “improving environmental andsocial value” and “improving corporate value,” which were then prioritized. High-priority issues were grouped into five materialities, as
follows. These are the priority issues that the Group will be addressing to promote sustainability management.

Sanki Engineering Group Materialities (Key Issues)
1.

Contribute to a carbon-free society

2.

Pursuit of happiness for colleagues

3.

Use engineering to build a comfortable environment

4.

Create new social value

5.

Stable earnings and stronger business base

The Group views its strengths as lying not only in the breadth of its technologies and extensive track record, but also in the long-term
relationship of trust with the large number of its valued customers who support the Japanese economy and infrastructure. By realizing
its long-term vision, the Group seeks to further expand and enhance these strengths.
The Group will also endeavor to improve its corporate value by addressing management issues it has identified, including further
enhancement of corporate governance and internal control, handing down and improvement of technical capabilities, promotion of CSR,
rigorous implementation of the risk management process, and sustainability improvement.
With respect to compliance, which is an essential prerequisite for corporate activities, the Group strives to enhance complianceawareness, not to mention strict adherence to laws and regulations, in accordance with the Sanki Engineering Group ComplianceDeclaration, the Sanki Engineering Group Code of Conduct and Action Guidelines, and the Sanki Engineering Group Conduct Standards.
Setting the foregoing as the basic policies of the Group management, steady efforts will be made to enhance corporate value in theyears leading to the 100th anniversary.

6(2) Operating environment and issues to be addressedWith respect to operating environment, the Group recognizes that the environment is changing significantly in such aspects as
decarbonization, declining birth rate and aging population, work-style reform, and rapid progress of DX. To respond to these changes inthe environment, the Group will promote energy conservation and energy creation business, automation and labor-saving business, andthe "Smile Project,” which is the Group’s unique work-style reform aimed at creating a friendly work environment including eliminationof long working hours.
With respect to the impact of the COVID-19 pandemic, as the situation is changing daily, we will continue to collect information andtake measures to minimize the impact, with top priority given to the protection of human life.
(i) Outline of “Century 2025” Phase 2
The period from FY2019 to FY2021 represents the period set for the “Century 2025” Phase 2 medium-term management plan. In
Phase 2, alongside continuous implementation of Phase 1 measures to enhance quality, the Group has defined a new theme, enhancereliability, and focused on initiatives to help stakeholders deepen their understanding of the Group, through disclosure of financial andcapital policies, disclosure of ESG policy, and strengthening of information dissemination capabilities to promote understanding of theGroup.
a. Environmental awareness and issues for each business・In the Facilities Construction Business, although the impact of the COVID-19 pandemic persisted in FY2021, it was not assignificant as in FY2020, and overall demand continued to be strong. Looking ahead, no drastic drop in demand is projected in
the facilities construction business area and a certain level of demand is expected to continue, including renewal construction.
The Group aims to ensure that consideration be given to eliminate overwork when receiving orders, develop energy-saving
systems, and improve the quality of construction by utilizing digital tools such as ICT and BIM.
・The Machinery Systems Business sees a continuing need for automation and labor-saving solutions arising from the decline in
the working population, and continued expansion in capital investments for logistics facilities. Viewing these as a major
opportunity, the Group has developed and launched new products for distribution centers. In addition, as the need for non-contact
techniques is growing at manufacturing plants and logistics facilities for such purposes as COVID-19 infection prevention, theGroup will make efforts to ensure that its technology can contribute to infection prevention and other measures.
・In the Environmental Systems Business, public facilities such as drainage disposal plants and waste treatment plants involve not
only construction of the facilities but also a broader support including maintenance and management. The Group will actively
engage in DBO (Design Build Operate) projects and will continue to expand its energy conservation and energy creation
businesses.
b. Basic principles of financial and capital policies
・With respect to investment for the future, the Group will make sufficient investment in human resources, including education,
based on the recognition that human resources are the most important management resources, and will also focus on R&D(research and development).
・With respect to returns to stakeholders, stable and continuous returns to stakeholders will be made with the total return ratio set
as a target. During the consolidated fiscal year under review, the Group acquired its treasury shares.
・The Group will continue to reduce the number of shares held for strategic purposes with the aim of improving capital efficiency.

7

c. ESG policy
・ With respect to E (environment), the Group will contribute to the resolution of global environmental issues such as
decarbonization, energy conservation, and energy creation, through its business activities. The Group will also actively engage
in environmental conservation activities, such as “the SANKI YOU Eco Contribution Point System” and “Sanki Forest”
arboriculture and afforestation projects. Since the calculation of the Group's greenhouse gas emissions has been completed forall of Scope 1, 2, and 3 during FY2021, the Group will proceed with setting concrete reduction targets and take action.
・With respect to S (society), the Group considers work-style reform to be a priority issue and will continue with “the Smile
Project,” its unique work-style reform. Efforts will also be made to create a friendly working environment for the diverse
workforce by encouraging active communication. In addition, the Group will conduct appropriate procurement activities inaccordance with its CSR-conscious Sanki Engineering Group Procurement Policies. The Group will actively promote
environmental activities, as well as support for cultural, sporting, and other activities.
・With respect to G (corporate governance), the Group will continuously seek to enhance its corporate governance in accordancewith Sanki Engineering Corporate Governance Guidelines.
(ii) Results of “Century 2025” Phase 2
Through these activities, the Group endeavored to achieve Phase 2 targets. The results are as follows.
a. Financial performance targets and results
Efforts were made to achieve sustainable growth from Phase 1.
(Billions of yen)
Medium-Term
Management Plan

Phase 1

Phase 2

2016

2017

2018

2019

2020

2021

2021*

2021

(actual)(actual)(actual)(actual)(actual)(target)(forecast)(actual)

Net sales

168.5

170.1

212.3

207.6

190.0

200.0

200.0

193.1

Gross profit

22.5

25.0

31.6

32.1

28.7

32.0

31.0

30.2

Ordinary profit

6.8

7.4

11.2

11.2

8.1

10.0

10.0

9.8

FY

* The figures are as stated in the consolidated earnings forecasts disclosed on November 12, 2021. Note that, with respect to net
sales and ordinary income, there is no change from the consolidated earnings forecasts disclosed on May 14, 2021, throughthe Timely Disclosure Network provided by the Tokyo Stock Exchange.
b. Targets and results of the final fiscal year of Phase 22021 (target)
Ordinary profit
marginROE

2021 (actual)

5.0% or higher

5.1%

8.0% or higher

7.0%

c. Targets and results for the Phase 2 period
Targets for the period
Dividend
Acquisition oftreasury shares
Total return ratio¥60 or more pershare annually
About 5 million shares

Actual
2019

2020

2021

¥95 per share annually¥80 per share annually¥85 per share annually

Acquired a cumulative total of 3.95 million shares over the three years

70% or higher

111.4%

8

97.3%

95.7%

(iii) Outline of “Century 2025” Phase 3
The period from FY2022 to FY2025 is the period set for the “Century 2025” Phase 3 medium-term management plan that will add
the finishing touches toward becoming “the Company of Choice” as defined in the Group’s long-term vision.

a. Basic Policies
Realize our ambition of becoming a corporate group of choice and prepare the groundwork for the next era by implementing new
initiatives while continuing to work on the measures taken to achieve Phase 1 priority theme of “enhancing the quality of its technology
and human resources” and Phase 2 priority theme of “enhancing reliability,” for these to mature or evolve further.
b. Priority measures
・Continuation of Phase 1○ Strengthen Core Businesses○ Promote Growth Strategy○ Enhance the Sanki Brand

・Continuation of Phase 2○ Disclose Financial and Capital Policies○ Strengthen Information Dissemination Capabilities

・New initiatives○ Contribute to the Sustainability of Society○ Accelerate Work-Style Reforms○ Invest toward the Next Era

c. Management targets
・Financial performance targets of the final fiscal year of Phase 3
FY2025Net sales¥220.0 billion

Gross profit margin
Ordinary profit

16.5%¥12.0 billion

・Targets for the Phase 3 period
FY2022—FY2025
Ordinary profit margin

5.0% or higher

Payout ratio

50% or higher

Dividend
Acquisition of treasury shares¥70 or more per share annually
About 5 million shares*

ROE
Growth investment

8.0% or higher
About ¥20 billion**Cumulative total for the planned period

In order to realize its long-term vision and become “the Company of Choice,” the Group will proceed with development of newtechnologies and further strengthening of corporate governance, and strive to achieve its sustainable growth and enhancement ofcorporate value over the medium to long term based on full commitment to compliance, while continuing its efforts to build a corporate
structure that can respond flexibly to changes in the environment.

9

3. Basic view on selection of accounting standards
The Group prepares its consolidated financial statements in line with Japanese standards to enable a comparison of the statements
across fiscal periods and between companies. We plan to respond appropriately to the adoption of IFRS (International Financial ReportingStandards), taking into account conditions in Japan and overseas.

10

4. Consolidated financial statements and related notes(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and deposits

36,08742,779

987

595

6,487

7,124

64,61039,412-

19,629Securities

2,999

5,999

Costs on construction contracts in progress

2,343

2,921

Notes receivable - trade
Electronically recorded monetary claims operating
Accounts receivable from completed construction
contracts and other
Contract assets

Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets

493

756

2,057

6,541

(12)

(17)

116,054

125,742

Non-current assets
Property, plant and equipment
Buildings and structures

43,594

43,830(33,445)(34,123)

10,148

9,707

2,025

2,028

(1,621)(1,630)

404

398

3,107

3,085

539

542

Accumulated depreciation

(250)

(230)

Leased assets, net

289

311

Accumulated depreciation
Buildings and structures, net
Machinery, vehicles, tools, furniture andfixturesAccumulated depreciation
Machinery, vehicles, tools, furniture andfixtures, net
Land
Lease assets

Construction in progress22

1

13,972

13,504

Other

937

1,255

Total intangible assets

937

1,255

28,81630,447

Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Long-term loans receivable

85

73

Retirement benefit asset

5,233

6,303

Leasehold and guarantee deposits

1,456

1,466

Insurance funds

873

1,252

Deferred tax assets

786

821

Other

3,516

3,160

Allowance for doubtful accounts

(419)

(419)

Total investments and other assets

40,348

43,10655,25857,866

171,313

183,609

Total non-current assets
Total assets

11

(Millions of yen)
As of March 31, 2021

As of March 31, 2022

Liabilities
Current liabilities
Electronically recorded obligations - operating

873

2,588

Accounts payable for construction contracts

40,83637,932

Short-term borrowings

7,135

8,885

Lease obligations

133

94

Income taxes payable
Advances received on construction contracts inprogress
Contract liabilities

840

2,659

8,580

－

－
3,792

14,754

Provision for bonuses

4,143

Provision for directors’ bonuses

230

234

Provision for warranties for completed construction

788

1,289

Other

－
4,671

6,617

Total current liabilities

67,882

79,2103,460

320Provision for loss on construction contracts

9

Non-current liabilities
Long-term borrowings
Lease obligations
Retirement benefit liability
Provision for loss on business of subsidiaries andassociates
Deferred tax liabilities

274

325

1,710

2,581

300

440

285

670

Other

5,701

5,784

Total non-current liabilities

11,731

10,121

79,61489,331

Share capital

8,105

8,105

Capital surplus

4,181

4,181

Retained earnings

73,15875,097

Treasury shares(3,859)(5,243)

Total shareholders’ equity

81,58582,14010,853

12,116

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

2

(5)

(116)

(19)

Remeasurements of defined benefit plans

(908)

(265)

Total accumulated other comprehensive income

9,831

11,827

Share acquisition rights
Total net assets
Total liabilities and net assets

12

282

310

91,69994,278

171,313

183,609(2) Consolidated statements of income and comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Net sales
Net sales of completed construction contracts

187,559

Net sales in real estate business and otherTotal net sales

190,646

2,507

2,542

190,067

193,189

159,793

161,430

Cost of sales
Cost of sales of completed construction contracts
Cost of sales in real estate business and other

1,519

1,535

161,313

162,965

27,76529,216988

1,007

28,75430,223

Employees' salaries and allowances

7,591

7,750

Provision for bonuses

1,613

1,771

Provision for bonuses for directors (and other officers)

230

234

Retirement benefit expenses

684

495
3

Depreciation

－
1,079

969

Other

10,055

9,886

Total selling, general and administrative expenses

21,255

21,110

7,498

9,112

Total cost of sales
Gross profit
Gross profit on completed construction contracts
Gross profit on real estate business and otherTotal gross profit
Selling, general and administrative expenses

Provision of allowance for doubtful accounts

Operating profit
Non-operating income
Interest income

19

15

Dividend income

521

560

Insurance claim income

247

112

Waste disposal income

109

175

Other

170

184

1,068

1,047

Interest expenses

113

112

Construction repair expenses

63

86

Other

193

144

Total non-operating expenses

370

342

8,196

9,817

Total non-operating income
Non-operating expenses

Ordinary profit

13

(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Extraordinary income
Gain on sale of investment securities－

50

Total extraordinary income

－

50

1

22

Loss on retirement of non-current assets

79

114

Loss on valuation of investment securities

19

77

Office relocation expenses
Provision for loss on business of subsidiaries andassociates
Compensation for damage

68

－

－

140

231

－

Total extraordinary losses

399

354

Profit before income taxes

7,797

9,514

Income taxes - current

2,232

3,512

Extraordinary losses
Impairment losses

Income taxes - deferred

(336)

(487)

Total income taxes

1,895

3,024

Profit

5,901

6,489

5,901

6,489

－

－

3,579

1,263

(Breakdown)
Profit attributable to owners of parent
Profit attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

2(7)Foreign currency translation adjustment

63

97

Remeasurements of defined benefit plans

1,378

643

Total other comprehensive income

5,023

1,995

10,924

8,485

10,924

8,485

－

－

Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

14

(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders’ equity

Balance at beginning of
periodShare capital

Capital surplus

8,105

4,181

Retainedearnings
74,155

Treasury shares

Total
shareholders’equity(4,187)

82,254

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesTransfer of loss on
disposal of treasury
sharesCancellation oftreasury shares
Net changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of period(5,474)(5,474)

5,901

5,901

(40)
40

(1,171)(1,171)

116

75

(40)

－

(1,383)

1,383

－

－

－

(996)

328

(668)

8,105

4,181

73,158(3,859)81,585

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

7,274

－

(179)

Total
Remeasurements
accumulatedof defined benefit
other
plans
comprehensive
income(2,286)

4,807

Share
acquisitionrightsTotal net assets

302

87,364

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesTransfer of loss on
disposal of treasury
sharesCancellation oftreasury shares
Net changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of period(5,474)
5,901(1,171)
75
－
－
3,579

2

63

1,378

5,023

(19)

5,003

3,579

2

63

1,378

5,023

(19)

4,334

10,853

2

(116)

(908)

9,831

282

91,69915

Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders’ equity

Balance at beginning of
periodShare capital

Capital surplus

8,105

4,181

Retainedearnings
73,158Treasury shares

Total
shareholders’equity(3,859)81,585

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesTransfer of loss on
disposal of treasury
sharesNet changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of period(4,537)(4,537)

6,489

6,489

(13)

(1,438)(1,438)

55

41

13

(13)

－

－

1,938

(1,383)

555

8,105

4,181

75,097(5,243)82,140－

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-forsale securities

Deferred gains
or losses onhedgesForeigncurrencytranslation
adjustment

10,853

2

(116)

Total
Remeasurements
accumulatedof defined benefit
other
plans
comprehensive
income
(908)

9,831

Share
acquisitionrightsTotal net assets

282

91,699Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesTransfer of loss on
disposal of treasury
sharesNet changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of period(4,537)
6,489(1,438)
41
－

1,263

(7)

97

643

1,995

27

2,023

1,263

(7)

97

643

1,995

27

2,578

12,116

(5)

(19)

(265)

11,827310

94,27816

(4) Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Loss on retirement of non-current assets
Office relocation expenses
Increase (decrease) in provision for loss on businessof subsidiaries and associates
Compensation for damage
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for retirement
benefits for directors (and other officers)
Increase (decrease) in provision for loss on
construction contracts
Interest and dividend income
Interest expenses
Loss (gain) on sale of investment securities
Loss on valuation of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in costs on construction contracts
in progress
Increase (decrease) in trade payables
Increase (decrease) in advances received on
construction contracts in progress
Increase (decrease) in contract liabilities
Increase (decrease) in other current liabilities
Other
SubtotalInterest and dividends received
Interest paid
Commitment fee payment
Income taxes paid
Income taxes refund
Office relocation costs paid
Compensation for damage paid
Cash flows from operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from redemption of securities
Purchase of property, plant and equipment
Payments for retirement of property, plant andequipment
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from collection of loans receivable
Subsidies received
Proceeds from maturity of insurance funds
Other
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Proceeds from exercise of share options
Repayments of lease obligations
Dividends paid
Cash flows from financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

17

Fiscal year ended
March 31, 2022
7,797
1,700
1
79
68

9,514
1,587
22
114
6

－

140

231
(1,525)(296)(1,594)

－
3
351
726

(39)

－

(50)

9

(540)
113
(7)
19
4,770

(575)
112
(50)
77
5,389

246

(573)

(10,777)(1,218)

1,088

－

－
(1,706)
3,159
2,737
540
(114)
(29)
(3,079)
－
(115)
(421)
(483)

6,154
2,080
(4,324)
19,548
575
(112)
(10)
(1,839)374(6)－18,529(17,000)
17,000(1,494)(19,000)
17,000(1,010)

(93)

(117)

(23)
358
15
20
74
(280)
(1,423)

(21)
182
12
20
304
(755)
(3,384)245
1,000(1,370)(1,171)0(203)(5,474)(6,974)0－(1,390)(1,438)0(152)(4,537)(7,518)21

64(8,859)45,94637,087

7,692
37,08744,779(5) Notes on consolidated financial statements(Notes on premise of going concern)
Not applicable(Changes in accounting policies)(Application of the Accounting Standard for Revenue Recognition, etc.)
The Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan Statement No. 29, March 31, 2020),
etc. has been applied from the beginning of the current consolidated fiscal year. Under this standard, revenue is recognized as theamount expected to be received in exchange for goods or services when control of the promised goods or services are transferredto the customer. As a result, with regard to construction contracts, the Company had previously used the percentage of completion
method when the results of work in progress could be recognized, but if control of a good or service is transferred to a customer
over a period of time, we are adopting a method of recognizing revenue over a period of time as we meet our performance obligations
to transfer the good or service to the customer. Progress in meeting performance obligations is measured based on the ratio ofconstruction costs incurred by the end of each reporting period to the total expected construction costs. In addition, if it is notpossible to reasonably estimate this progress, but it is expected that the costs incurred will be recovered, revenue is recognizedbased on the cost recovery method. Alternative treatment is applied to construction contracts with a very short period from thetransaction start date in the contract to the time when the performance obligation is expected to be fully satisfied, and we willrecognize revenue when we fully meet our performance obligations rather than recognizing revenue for a certain period of time.
Regarding application of the Accounting Standard for Revenue Recognition, etc., in accordance with the transitional treatment
stipulated in the proviso of paragraph 84 of the Accounting Standard for Revenue Recognition, the cumulative impact of retroactive
application of new accounting policies prior to the beginning of the consolidated fiscal year is added to or subtracted from retained
earnings at the beginning of the consolidated fiscal year, and the new accounting policy has been applied from the balance at the
beginning of the fiscal year.
"Notes receivable, accounts receivable from completed construction contracts and other,” which were stated under “Current
assets” in the consolidated balance sheet of the previous consolidated fiscal year, are separately classified as “Notes receivable trade,” “Accounts receivable from completed construction contracts and other,” and “Contract assets” from the consolidated fiscal
year under review, and presented accordingly. “Advances received on construction contracts in progress,” which was stated under“Current liabilities” in the previous consolidated fiscal year, is included in “Contract liabilities” from the consolidated fiscal year
under review.
The application of the Accounting Standard for Revenue Recognition, etc., had no impact on the consolidated statements ofincome and comprehensive income. In addition, there is no impact on the balance of retained earnings at the beginning of the period.
In accordance with the transitional treatment stipulated in paragraph 89-2 of the Accounting Standard for Revenue Recognition, theprevious consolidated fiscal year has not been reclassified using the new presentation method.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Accounting Standard for Fair Value Measurement (Accounting Standards Board of Japan Statement No. 30, July 4, 2019),
etc. has been applied from the beginning of the current consolidated fiscal year. In accordance with the transitional treatment
stipulated in paragraph 19 of the Accounting Standard for Fair Value Measurement and the Accounting Standard for Financial
Instruments (Accounting Standards Board of Japan Statement No. 10, July 4, 2019) paragraph 44-2, the new accounting policy
stipulated by the Accounting Standard for Fair Value Measurement, etc. will be applied in the future. This will not have an impact
on consolidated financial statements.

18

(Changes in presentation method)(Consolidated statements of income and comprehensive income)“Commitment fees,” which was posted separately under non-operating expenses in the previous consolidated fiscal year, is
included in “Other” from the consolidated fiscal year under review because the financial materiality has decreased. The
consolidated financial statements for the previous fiscal year have been reclassified to reflect this change in presentation.
As a result, ¥33 million presented as “Commitment fees” and ¥160 million presented as “Other” under non-operating
expenses in the consolidated statements of income and comprehensive income for the previous consolidated fiscal year are
reclassified as “Other” ¥193 million.
(Consolidated statements of cash flows)“Commitment fees” and “Loss (gain) on sale of property, plant and equipment,” which were separately presented under cash
flows from operating activities, as well as “Proceeds from sale of property, plant and equipment,” which was presented undercash flows from investing activities in the previous consolidated fiscal year, are, from the consolidated fiscal year under review,
included in “Other” because the financial materiality has decreased. “Loss (gain) on sale of investment securities,” which was
included in “Other” under cash flows from operating activities in the previous consolidated fiscal year, is separately presented
from the consolidated fiscal year under review because the financial materiality has increased.
As a result, ¥33 million of “Commitment fees,” ¥0 million of “Loss (gain) on sale of property, plant and equipment,” and¥3,118 million of “Other,” which were presented under cash flows from operating activities in the consolidated statements ofcash flows for the previous consolidated fiscal year, are reclassified to ¥3,159 million in “Other” and ¥7 million gain in “Loss(gain) on sale of investment securities.” ¥0 million of “Proceeds from sale of property, plant and equipment” and ¥281 millionof cash outflow from “Other,” which were presented under cash flows from investing activities in the previous consolidated
fiscal year, are reclassified to ¥280 million of cash outflow from “Other.”19

(Segment information, etc.)[Segment information]
1. Overview of reportable segments
The Group's reportable segments are components of the Group for which separate financial information is available, and which
are subject to periodic review by the chief management decision-making body to determine the allocation of management
resources and evaluate performance.
The Group uses a divisional organizational structure for the company, and each consolidated subsidiary develops its businessin cooperation with the company's divisional organizational structure within a reportable segment.
Accordingly, the Group is composed of the following four segments based on the organizational structure of the company: theFacilities Construction Business, which is engaged in a wide-range of business related to facilities construction works; theMachinery Systems Business, which is engaged in business related to industrial equipment such as FA systems, distribution
systems, and conveyors; the Environmental Systems Business, which is engaged in business related to environmental facilities
such as water and sewage treatment facilities; and the Real Estate Business, which is engaged in real estate leasing andmanagement.
2. Methods of calculating the amounts of sales, profit (loss), and other items by reportable segment
Methods of accounting procedures for reportable business segments are generally the same as those used in the preparation of
consolidated financial statements. The profit of each reportable segment is an amount based on ordinary profit. Intersegment
sales and transfers are based on prevailing market prices.
Segment assets and liabilities are not listed because they are not taken into consideration when deciding the allocation ofmanagement resources and evaluating business performance.
3. Information on net sales, profit (loss), and other items by reportable segment
Fiscal year ended March 31, 2021
(Millions of yen)
Reportable segments
Facilities Machinery
Construction Systems
Business
Business

Environmental
Systems
BusinessReal
EstateBusiness

Total

Other
(Notes) 1

Total

Adjustments(Notes) 2

Value onconsolidated
financialstatements(Notes) 3

Net sales
Net sales to externalcustomers
Intersegment sales ortransfers

155,0968,966

23,4982,372

189,935

132

190,067－

190,067

404

6

61

2

475

682

1,158

(1,158)－

Total

155,501

8,973

23,5602,375

190,410815

191,226(1,158)190,067

7,677

(393)

20

777

8,082

40

8,122

74

8,196

Segment profit (loss)
Other items

Depreciation
955
262
139
389
1,747
0
1,747
(47)
1,700
Interest income
7
0
4
11
0
11
7
19
－
Interest expenses
38
0
1
40
40
72
113
－
－
Extraordinary losses
104
7
12
43
167
167
231
399
－
(Notes) 1. The “Other” category is a business segment that is not included in the reportable segments, and includes the leasing
business and insurance agency business, etc.
2. Adjustment amountThe adjustment amount of ¥74 million to segment profit/loss includes company-wide loss not allocated to each reportablesegment of ¥478 million, the reversal amount of the interest burden allocated to each segment within the company of ¥385
million, and an adjustment amount of ¥167 million due to the recording of loss on retirement of fixed assets attributable toeach segment as an extraordinary loss. Note that general and administrative expenses, etc. that are not attributable to eachsegment are the main source of company-wide profit/loss.
3. Segment profit or loss is adjusted with ordinary profit in the consolidated financial statements.

20

Fiscal year ended March 31, 2022
(Millions of yen)
Reportable segments
Facilities
Machinery
Construction Systems
Business
Business

Environmental
Systems
BusinessReal
EstateBusiness

Total

Other
(Notes) 1

Total

Value onconsolidated
Adjustments
financial(Notes) 2
statements(Notes) 3

Net sales
Net sales to externalcustomers
Intersegment sales ortransfers

155,165

9,660

25,816

2,407

193,050

139

193,189－

193,189

318

6

26

2

354

427

781

(781)

－

Total

155,484

9,666

25,842

2,410

193,404

566

193,971(781)

193,189

Segment profit (loss)

8,825

(193)

184

798

9,615

6

9,622

195

9,817

Other items
Depreciation
886
229
123
407
1,646
0
1,646
(59)
1,587
Interest income
4
0
3
7
0
7
7
15
－
Interest expenses
42
0
0
43
43
69
112
－
－
Extraordinary income
50
50
－
－
－
－
－
－
－
Extraordinary losses
147
3
5
57
214
214
140
354
－
(Notes) 1. The “Other” category is a business segment that is not included in the reportable segments, and includes the leasing
business, insurance agency business, etc.
2. Adjustment amountThe adjustment amount of ¥195 million to segment profit/loss includes company-wide loss not allocated to eachreportable segment of ¥430 million, the reversal amount of the interest burden allocated to each segment within thecompany of ¥391 million, and an adjustment amount of ¥234 million due to the recording of loss on retirement of fixed
assets and loss on valuation of investment securities attributable to each segment as an extraordinary loss. Note thatgeneral and administrative expenses, etc. that are not attributable to each segment are the main source of company-wide
profit/loss.
3. Segment profit or loss is adjusted with ordinary profit in the consolidated financial statements.

21[Related information]
FY2020 (April 1, 2020 to March 31, 2021) and FY2021 (April 1, 2021 to March 31, 2022)
1. Information by product and service
Information by product and service is omitted because similar information is provided in “segment information.”
2. Information by region(1) Net sales
This information is omitted because sales to external customers in Japan account for over 90% of sales on the consolidated
statements of income and comprehensive income.
(2) Property, plant and equipment
This information is omitted because the amount of property, plant and equipment located in Japan exceeds 90% of theamount of property, plant and equipment on the consolidated balance sheet.
3. Information on main customers
This information is omitted because within sales to external customers, no specific customer accounts for over 10% of sales
on the consolidated statements of income and comprehensive income.
[Information related to impairment losses on non-current assets by reportable segment]
Fiscal year ended March 31, 2021
(Millions of yen)
Facilities
Machinery EnvironmenReal Estate
Construction Systems
tal Systems
Business
Business
Business
Business
Impairment losses

1

－

－

Other

－

Total

Adjustments
1

－

Total
1

－

Fiscal year ended March 31, 2022
(Millions of yen)
Facilities
Machinery EnvironmenReal Estate
Construction Systems
tal Systems
Business
Business
Business
Business
Impairment losses
22
－
－
－

Other

Total
－

[Information on amortization and unamortized balance of goodwill by reportable segment]
FY2020 (April 1, 2020 to March 31, 2021) and FY2021 (April 1, 2021 to March 31, 2022)
Not applicable[Information on negative goodwill gains by reportable segment]
FY2020 (April 1, 2020 to March 31, 2021) and FY2021 (April 1, 2021 to March 31, 2022)
Not applicable

22

Adjustments
22

－

Total
22

(Per share information)
Fiscal year ended March 31, Fiscal year ended March 31,
2021
2022
Net assets per share¥1,611.76¥1,685.20

Profit per share¥103.12¥115.13

Profit per share – diluted¥102.60¥114.55(Note) The basis for calculating profit per share and diluted profit per share is as follows.
Fiscal year ended March 31, Fiscal year ended March 31,
2021
2022
Profit per share
Profit attributable to owners of parent
Amount not attributable to commonshareholders
Profit attributable to owners of parent
pertaining to common shares
Average number of common shares outstanding
in fiscal year
Profit per share – diluted
Adjustment of profit attributable to owners ofparent(Millions of yen)

5,901

6,489

(Millions of yen)－－

(Millions of yen)

5,901

6,489

(Thousands ofshares)57,23056,363(Millions of yen)

－

－

287

288

287

288

(Thousands ofshares)(Of which, stock options utilizing stock acquisition rights)(Thousands of shares)
Increase in common shares

Overview of issuable shares not included in the calculation ofdiluted profit per share because they have no dilutive effect(Important post balance sheet events)
Not applicable23――――――――――――――――――――

5. Reference information
Results reference information (YoY comparison)(1) Summary of consolidated statements of income
April 1, 2020 toMarch 31, 2021
Net sales of completed
construction contracts
Net sales in real estate business andotherNet sales
Cost of sales of completed
construction contracts
Cost of sales in real estate businessand other
Cost of sales
Gross profit on completed
construction contracts
Gross profit on real estate businessand other
Gross profit(Millions of yen, %)YoY change
YoY change(%)

April 1, 2021 toMarch 31, 2022

187,559

190,646

3,087

1.6

2,507

2,542

34

1.4

190,067

193,189

3,121

1.6

159,793

161,430

1,636

1.0

1,519

1,535

16

1.1

161,313

162,965

1,652

1.0

27,76529,216

1,450

5.2

988

1,007

18

1.9

28,75430,223

1,469

5.1

Selling, general and administrative expenses

21,255

21,110

(144)

(0.7)

Operating profit

7,498

9,112

1,614

21.5

Non-operating income

1,068

1,047

(21)

(2.0)

Non-operating expenses

370

342

(27)

(7.5)

8,196

9,817

1,620

19.8

－
399

50

50

354

(45)

－
(11.3)

Profit before income taxes

7,797

9,514

1,716

22.0

Profit attributable to owners of parent

5,901

6,489

587

10.0

Ordinary profit
Extraordinary income
Extraordinary losses(2) Summary of non-consolidated statements of income
April 1, 2020 toMarch 31, 2021
Net sales of completed
construction contracts
Net sales in real estate business andotherNet sales
Cost of sales of completed
construction contracts
Cost of sales in real estate businessand other
Cost of sales
Gross profit on completed
construction contracts
Gross profit on real estate businessand other
Gross profit(Millions of yen, %)YoY change
YoY change(%)

April 1, 2021 toMarch 31, 2022

166,503

171,134

4,630

2.8

2,375

2,410

34

1.5

168,879

173,544

4,665

2.8

142,844

145,582

2,738

1.9

1,509

1,533

24

1.6

144,353

147,116

2,763

1.9

23,65925,552

1,892

8.0

866

876

9

1.1

24,526

26,428

1,901

7.8

Selling, general and administrative expenses

19,281

19,140

(141)

(0.7)

Operating profit

5,245

7,288

2,042

39.0

Non-operating income

2,955

2,756

(198)

(6.7)

Non-operating expenses

415

387

(27)

(6.6)

7,784

9,656

1,871

24.0

－
401

50

50

372

(28)

－
(7.0)

Profit before income taxes

7,383

9,334

1,950

26.4

Profit

6,266

6,952

685

10.9

Ordinary profit
Extraordinary income
Extraordinary losses

24

(3) Segment orders, sales, and balance carried forward (consolidated)(Millions of yen)
FY2020Category

April 1, 2020 toMarch 31, 2021

FY2021
April 1, 2021 toMarch 31, 2022

Share
80

2.4

Machinery Systems

7,858

5

1,055

13.4

Environmental
Systems

30,640

15

1,929

6.7

Subtotal

19

39,554

20

2,985

8.2

193,33899

200,059

99

6,721

3.5

Real Estate Business

2,375

1

2,410

1

34

1.5

Other

609

0

563

0

(45)

(7.4)

Adjustments

(742)

(0)

(782)

(0)

(40)

－

195,580100

202,250

100

6,670

3.4

Facilities Construction

155,501

82

155,484

81

(17)

(0.0)

Machinery Systems

8,973

5

9,666

5

693

7.7

Environmental
Systems

23,56012

25,842

13

2,282

9.7

Subtotal

32,53317

35,509

18

2,976

9.1

188,035

99

190,993

99

2,958

1.6

Real Estate Business

2,375

1

2,410

1

34

1.5

Other

815

1

566

0

(248)

(30.5)

Adjustments(1,158)

(1)

(781)

(0)

376

－

Total

190,067100

193,189

100

3,121

1.6

Facilities Construction

99,87170

104,892

70

5,020

5.0

Machinery Systems

3,631

3

2,879

2

(752)

(20.7)

Environmental
Systems

38,18427

42,981

28

4,797

12.6

Subtotal

41,81530

45,860

30

4,045

9.7

141,687

100

150,753

100

9,065

6.4

Real Estate Business

－

－

－

－

－

－

Other

73

0

70

0

(3)

(4.3)

Adjustments

(84)

(0)

(85)

(0)

(1)

－

141,676100

150,737

100

9,061

6.4

Overseas orders (% of total orders)

2,789

1.4%

4,283

2.1%

1,493

53.5

%

Overseas sales (% of total sales)

3,140

1.7%

2,912

1.5%

(228)

(7.3)

%

Equipment construction
business
Plant
equipment

156,768

Total equipment
construction business

Equipment construction
business
Plant
equipment

Total equipment
construction business

Equipment construction
business
Plant
equipment

Balance carried forward

Net sales

Total

Total equipment
construction business

Total

%

Share

160,504

79

4

8,914

28,71015

36,569%%Note: Internal transactions in each segment are eliminated by the adjustment amount.

25%

YoY change
(%)

3,736

Orders received

Facilities Construction

YoY change

%

%

%

%

(4) Division orders, sales, and balance carried forward (non-consolidated)(Millions of yen)
FY2020

Facilities Construction

35 %54,31831 %(6,562)(10.8) %Industrial HVAC

57,111

32

59,915

34

2,803

4.9

Electrical Systems

21,16312

27,552

15

6,389

30.2

Facility Systems

10,121

6

9,960

6

(161)

(1.6)

Subtotal

149,27885

151,747

86

2,469

1.7

Machinery Systems

7,164

4

8,318

5

1,153

16.1

Environmental Systems

16,737

10

14,7038(2,034)(12.2)

Subtotal

23,901

14

23,021

13

(880)

(3.7)

173,18099

174,769

99

1,588

0.9

Real Estate Business

2,375

1

2,410

1

34

1.5

Total

175,555

100

177,179

100

1,623

0.9

Facilities Construction

HVAC and Plumbing for
Buildings

50,53830 %57,750

34 %

7,212

14.3

Industrial HVAC

61,45036

55,17632(6,273)(10.2)

Electrical Systems

24,591

15

24,59914

70.0Facility Systems

10,437

6

10,436

6

(1)

(0.0)

Subtotal

147,018

87

147,962

86

944

0.6

Plant
equipment

Machinery Systems

8,284

5

9,081

5

796

9.6

Environmental Systems

11,2007

14,090

8

2,889

25.8

Subtotal

19,485

12

23,172

13

3,686

18.9

166,503

99

171,134

99

4,630

2.8

Real Estate Business

2,375

1

2,410

1

34

1.5

Total

168,879100

173,544

100

4,665

2.8

Facilities Construction

Equipment construction business

Share

YoY change(%)

60,881

HVAC and Plumbing for
Buildings

53,07542 %

49,64338 %(3,431)(6.5) %

Industrial HVAC

26,46621

31,205

24

4,739

17.9

Electrical Systems

15,04012

17,993

14

2,953

19.6

Facility Systems

3,308

2

2,832

2

(475)

(14.4)

Subtotal

97,89077

101,675

78

3,785

3.9

Machinery Systems

3,547

3

2,783

2

(763)

(21.5)

Environmental Systems

25,53520

26,147

20

612

2.4

Subtotal

29,082

23

28,931

22

(150)

(0.5)

126,973100

130,607

100

3,634

2.9

－

－

－

－

－

－

126,973100

130,607

100

3,634

2.9

Total equipment construction
business

Equipment construction business

Share

YoY change

Plant
equipment

Net sales

FY2021
April 1, 2021 toMarch 31, 2022

HVAC and Plumbing for
Buildings

Total equipment construction
business

Balance carried forward

April 1, 2020 toMarch 31, 2021

Plant
equipment

Equipment construction business

Orders received

Category

Total equipment construction
business
Real Estate Business
Total

Overseas orders for construction contracts(% of total orders)
Overseas sales of completed construction
contracts (% of total sales)

%

37

0.0%

99

0.1%

61

165.0

81

0.0%

54

0.0%

(27)

(33.4) %26%