FY2020 Summary of Financial Results
May 14, 2021

FY2020 Financial Summary☆Key Points of Financial Results[1] COVID-19 pandemic: There was an impact on small-scale projects with a decline in orders received, net sales, and gross profit[2] Large-scale projects: Orders received were favorable; however, net sales declined due to being between projects[3] Gross profit: Gross profit was down due to decreased revenue; however, profitability remained at a high level<Orders received> 195.58 billion yen (194.018 billion yen in the previous fiscal year)● Large-scale projects for HVAC and plumbing for buildings, industrial HVAC, and environmental systems were positive, exceeding
the previous fiscal year
● In the second half of the fiscal year, orders received recovered to the level of the same period of the previous fiscal year in spiteof a decline in small-scale projects as a result of the impact of the COVID-19 pandemic<Net sales> 190.067 billion yen (207.684 billion yen in the previous fiscal year)● Net sales also fell short of the previous fiscal year due to being between large-scale projects, particularly building HVAC andplumbing combined with a decline in small-scale projects as a result of the impact of the COVID-19 pandemic<Gross profit> Gross profit margin of 15.1% (15.5% in the previous fiscal year)● Although gross profit margin fell short of the previous fiscal year, profitability remained at a high level<FY2021 consolidated results forecasts>● Orders received of 200 billion yen, net sales of 200 billion yen, and ordinary income of 10 billion yen* Although, at this stage, results have been incorporated, which take into account the impact of the COVID-19 pandemic on theGroup’s business, business results may be further impacted due to altered circumstances in the future<Shareholder returns>● Conducted shareholder returns according to medium-term management plan “Century 2025” Phase 2 financial and capital
policies● An extra dividend of 10 yen has been paid in addition to the regular dividend of 70 yen, resulting in a total annual dividend of
80 yen● 1 million shares of treasury stock were acquired and retired● Payout ratio: 77.6%; total return ratio: 97.3%

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Contents

1

2

33

44

55

FY2020Results

FY2020
Balance Sheetand Statementof Cash FlowsFY2021
Forecast

Shareholder
Returns

Supplementary
Materials

P4～10

P11～13

P14～16

P17～19

P20～273©2021 SANKI ENGINEERING CO., LTD. All Rights Reserved.

FY2020 RESULTS

4©2021 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Overall Results】
FY2020 Results (Consolidated)(Millions of yen)
FY2018FY2019FY2020Year on year

Rate ofchange(%)

Orders received

217,096

194,018

195,580

1,561

0.8

Balance carried forward

149,495

136,163

141,676

5,513

4.0

Net sales

212,314207,684

190,067(17,617)(8.5)

Completed construction
contracts

210,245

205,247

187,559(17,687)(8.6)

Real estate and others

2,069

2,437

2,507

70

2.9

31,684

32,11028,754(3,356)(10.5)

30,99031,224

27,765(3,458)(11.1)

694

886

988

101

11.5

14.9

15.5

15.1

(0.4)

―

Selling, general and administrative expenses

21,046

21,436

21,255

(180)

(0.8)

Operating income

10,637

10,674

7,498(3,175)(29.7)

566

550

698

147

26.8

11,204

11,224

8,196(3,027)(27.0)

122

(110)

(399)

(289)

―

9,046

7,576

5,901

(1,675)(22.1)

Gross profit

Completed construction
contracts
Real estate and others
Gross profit margin (%)

Non-operating income and loss(loss)
Ordinary income
Extraordinary income (loss)
Profit attributable to owners of parentpt.

5©2021 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Overall Results】
Quarterly Results (Consolidated)
FY2018(Millions of yen)

FY2019FY2020

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Orders received

50,88552,934

51,22862,04846,69754,20450,031

43,08547,66055,575

43,21149,132

Net sales

35,25245,47061,32370,26740,88250,962

51,83364,00638,25342,611

48,35160,851Gross profit

4,329

6,442

8,654

12,258

5,305

7,862

7,460

11,482

5,120

5,637

7,414

10,582

12.3

14.2

14.1

17.4

13.0

15.4

14.4

17.9

13.4

13.2

15.3

17.4

Selling, general andadministrative
expenses

4,571

5,072

4,965

6,437

4,983

4,992

5,063

6,396

5,274

4,976

5,064

5,939

Operating income(loss)

(242)

1,369

3,688

5,821

322

2,869

2,396

5,085

(154)

660

2,350

4,642

Operating profit
margin (%)

(0.7)

3.0

6.0

8.3

0.8

5.6

4.6

7.9

(0.4)

1.5

4.9

7.6

Ordinary income

92

1,447

3,848

5,815

547

2,955

2,644

5,076

66

776

2,527

4,826

Extraordinary income(loss)(147)(3)(1,167)

1,439

24

84

49

(269)

(82)

(243)

(40)

(33)

Profit attributable toowners of parent(loss)

(66)

862

1,743

6,505

428

2,057

1,815

3,276

11

809

1,647

3,431

Gross profit margin(%)

6©2021 SANKI ENGINEERING CO., LTD. All Rights Reserved.

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

FY2018FY2019FY2020Year on year

Rate of
Change (%)

HVAC and Plumbing for
Buildings

65,63962,09565,371

3,276

5.3

Industrial HVAC

82,72958,391

59,234843

1.4

Electrical Systems

23,34225,00021,472(3,528)(14.1)

Facility Systems

10,821

12,171

10,690(1,481)(12.2)

182,533

157,659

156,768

(890)

(0.6)

Machinery Systems

12,04910,351

7,858(2,492)(24.1)

Environmental Systems

21,70524,24728,710

4,462

18.4

Total of Plant & Machinery
Systems Business

33,75534,59936,5691,970

5.7

216,288

192,258

193,338

1,080

0.6

1,926

2,210

2,375

165

7.5

960

917

609

(308)

(33.6)(2,078)(1,367)

(742)

624

―

217,096

194,018

195,580

1,561

0.8

Total of Facilities Construction
Business

Sub-total
Real Estate Business
OthersAdjustments *Total* “Adjustments” eliminate internal transactions included in each segment.

7©2021 SANKI ENGINEERING CO., LTD. All Rights Reserved.

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

FY2018FY2019FY2020Year on year

Rate of
Change (%)

HVAC and Plumbing for
Buildings

71,55870,75655,293(15,462)(21.9)

Industrial HVAC

73,49367,73664,152(3,584)(5.3)

Electrical Systems

23,214

21,88924,941

3,052

13.9

Facility Systems

11,033

11,11911,113(5)(0.0)

179,300

171,501

155,501(15,999)(9.3)

Machinery Systems

11,791

11,1698,973(2,196)(19.7)

Environmental Systems

20,471

23,261

23,560298

1.3

Total of Plant & Machinery
Systems Business

32,26334,431

32,533(1,897)(5.5)

211,563

205,932

188,035(17,897)

(8.7)

1,926

2,210

2,375

165

7.5

718

931

815

(116)

(12.5)(1,893)(1,389)(1,158)230―

212,314207,684

190,067(17,617)(8.5)

Total of Facilities Construction
Business

Sub-total
Real Estate Business

OthersAdjustments*

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

8©2021 SANKI ENGINEERING CO., LTD. All Rights Reserved.

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

Gross Profit by segment

Segment

FY2018FY2019FY2020Year onyear

Rate of
Change (%)

HVAC and Plumbing for
Buildings/Industrial HVAC
/Electrical Systems

23,712

23,61021,038(2,572)(10.9)

Facility Systems

1,877

2,170

2,215

44

2.1

Total of Facilities
Construction Business

25,59025,781

23,253(2,527)(9.8)

Machinery Systems

2,136

2,316

1,556

(760)

(32.8)

Environmental Systems

3,622

3,314

3,176

(138)

(4.2)

Total of Plant & Machinery
Systems Business

5,759

5,631

4,732

(898)

(16.0)

31,34931,412

27,986(3,425)(10.9)

Real Estate Business

567

673

866

192

28.6

Others

178

200

101

(99)

(49.7)

Adjustments

(411)

(176)

(199)

(23)

－

31,684

32,11028,754(3,356)(10.5)

Sub-total

Total

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【Profit】
Initiatives to Improve Profits● Thorough cost management (thorough internal control processes)● Enhancement of the site support system through promotion of the Smile Site Plan*
・Procurement Division: Purchasing support and introducing web-based procurement support
system・Design & Engineering Center: Support for design work
・Smile Technical Center: Support and instruction for work sites
・Quality Control Center: Construction audits and quality management by the Quality
Assurance Administrator and Technical Expert
・Branch office site support divisions: Support for on-site document creation
・Information Systems Office: ICT support at work sites● Development and introduction to sites of ICT technology that enables energy-saving
construction
・Improved work efficiency through the use of autonomous airflow measurement robots
・Improved construction management through use of digital information such as BIM(business information modeling)● Strengthening relationships with business partners
・Review of payment terms for payments to partner companies with capital of less than 40.00
million yen (payments made entirely in cash)
・Conclusion of commitment line agreements for the purpose of securing funds to support
partner companies and catering to short-term demand for operating capital* A specialist committee that was established in fiscal 2017 to reduce the burden on construction managers and promote businessefficiency

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FY2020BALANCE SHEET AND
STATEMENT OF CASH FLOWS

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【Financial Conditions】
Balance Sheet (Consolidated)
End of
FY 2019
Current assets(Millions of yen)
End of
FY 2020

Year on year

Rate ofchange (%)

130,765

116,054(14,710)(11.2)

71,73965,598(6,141)(8.6)

50,04055,258

5,218

10.4

24,017

28,816

4,798

20.0

79,70567,882(11,822)(14.8)

Notes payable

3,100

―

(3,100)―Electronically recorded obligations operating

1,626

873

(752)

(46.3)

Accounts payable on construction
contracts

47,761

40,836(6,925)(14.5)

Noncurrent liabilities

13,735

11,731(2,004)(14.6)

Total net assets

87,364

91,6994,334

5.0(4,187)(3,859)328―

Total assets

180,805

171,313(9,492)(5.2)

Book-value per share

1,510.59

1,611.76

101.17

6.7

48.2

53.4

5.2

―

10,71910,595

(124)

(1.2)

Notes and accounts receivable on completed
construction contracts and otherNoncurrent assets
Investment securities
Current liabilities

Treasury stock

Equity ratio (%)
Interest-bearing liabilities (consolidated)

pt.

12

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【CF】
Statement of Cash Flows (Consolidated)○ The balance of cash and cash equivalents decreased year on year
・ The decrease in cash flows from operating activities is due to payment of accounts payable exceeding recovery of receivables due tosome payments by bill actually being paid in cash, etc., and contribution to retirement benefit funds and payment of taxes, etc.
・ The decrease in cash flows from investment activities is mainly due to the acquisition of property, plant and equipment
・ The decrease in cash flows from financing activities is mainly due to the purchase of treasury stock and the payment of dividends(Millions of yen)

FY2016FY2017FY2018FY2019FY2020Cash flows from operating
activities

10,845

6,306

6,786

11,940(483)

Cash flows from investing
activities(1,644)(2,510)(3,775)(303)(1,423)

Cash flows from financing
activities(2,458)

1,814(5,215)(8,955)(6,974)

Cash and cash equivalents at endof period

39,18744,866

42,61245,94637,087

Capital investment(including intangible assets)

1,015

3,772

6,110

2,197

2,178

Depreciation and amortization

718

818

1,340

1,643

1,700

13
©2021 SANKI ENGINEERING CO., LTD. All Rights Reserved.

FY2021 FORECAST

14©2021 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Overall Forecast】

FY2021 Full-Year Forecast (Consolidated)
FY2016FY2017FY2018FY2019FY2020A(Millions of yen)
Initialforecast for
FY 2021B

Increase/
Decrease
B–A

Rate ofchange(%)

Orders received

185,880

191,113217,096

194,018

195,580

200,000

4,420

2.3

Balance carried forward

123,756

144,712

149,495

136,163

141,676

141,676――

Net sales

168,512170,157

212,314207,684

190,067

200,000

9,933

5.2

Gross profit

22,53825,06031,684

32,11028,75432,000

3,246

11.3

13.4

14.7

14.9

15.5

15.1

16.0

0.9

―

Operating income

6,012

6,593

10,637

10,674

7,498

9,500

2,002

26.7

Ordinary income(loss)

6,880

7,434

11,204

11,224

8,196

10,000

1,804

22.0

Profit attributable toowners of parent

4,698

3,906

9,046

7,576

5,901

7,000

1,099

18.6

Regular dividends per share
(yen)

20

20

40

70

70

70

―

―

Extra dividends per share
(yen)

10

15

20

25

10

―

(10)

―

30

35

60

95

80

70

(10)

―

Gross profit margin (%)

Cash dividends per share(total)(yen)pt.

* Although results have been incorporated, which take into account the impact of COVID-19 pandemic on the Group’s business at this point, business results may befurther impacted due to future spread of the virus

15©2021 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Forecast of Orders Received and Net Sales】
FY2021 Forecast of Orders Received andNet Sales by Segment (Consolidated)
FY2021
Orders Received Forecast

Segment(Millions of yen)

FY2021
Net sales Forecast

HVAC and Plumbing for
Buildings

69,00066,000Industrial HVAC

57,00058,000Electrical Systems

23,00025,000

Facility Systems

12,00012,000161,000

161,000

Machinery Systems

12,00010,000

Environmental Systems

25,00027,000Total of Plant & Machinery Systems
Business

37,00037,000Sub Total

198,000

198,000

2,000

2,000

Others500

500

Adjustments*

(500)

(500)

200,000

200,000

Total of Facilities Construction
Business

Real Estate Business

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

16©2021 SANKI ENGINEERING CO., LTD. All Rights Reserved.

SHAREHOLDER
RETURNS17©2021 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Shareholder Returns】
Dividends and Others
・ Conducted shareholder returns according to medium-term management plan “Century 2025” Phase 2 financial and capital policies
・ An extra dividend of 10 yen has been paid in addition to the regular dividend of 70 yen, resulting in a total annual dividend of 80 yen
・ 1 million shares of treasury stock were acquired and retired

FY 2016

FY 2017

FY 2018

FY 2019

September2020

FY 2020

73.91

63.02

150.02128.51

14.25

103.12

Cash dividends per share:
regular dividends (yen)

20

20

40

70

35

70

Cash dividends per share:
extra dividends (yen)

10

15

20

25

―

10

Cash dividends per share (yen)

30

35

60

95

35

80

Payout ratio (consolidated) (%)

40.6

55.5

40.0

73.9

77.6

Total return ratio (%)

40.6

148.9

52.9

111.4

97.3

Number of shareholders at end of FY

3,157

3,243

3,381

4,216

7,360

14,861

Stock price at end of FY (yen)

958

1,188

1,210

1,211

1,152

1,453

Acquisition of treasury stock(thousand shares)

―

3,000

1,000

1,958

110

1,000

Retirement of treasury stock(thousand shares)

―

3,000

1,000

2,000

1,000

1,000

ROE (Return on Equity) (%)

5.5

4.5

10.3

8.6

6.6

ROA (Return on Assets) (%)

4.1

4.3

6.0

6.0

4.7

Earnings per share (yen)18©2021 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Shareholder Returns】
Total Return Ratio
Phase 1

Phase 2

(Millions of yen)
10,000160.0%

1 4 8 .9%

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

140.0%

Amount of dividends (left axis)
配当金支払額（左軸）8,000
120.0%

2 ,8 99

1 1 1 .4%

6,000

1,171

1,191
4,000

97.3%

80.0%

60.0%
52.9%

5,543
4 ,5 682,000

100.0%← Total return ratio： 70%

3 ,6 79

40.6%

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

40.0%

3,595
1 ,9 06

2 ,1 36

2016

2017

20.0%

0

0.0%
2018

2019

2020

19
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SUPPLEMENTARY
MATERIALS

20©2021 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Orders Received】
Orders Received by Type(Millions of yen)
FY2018Orders received (Non-consolidated: Facilities
Construction Business

FY2019
A

Diff.
B–A

FY2020B

173,553

147,191

149,278

2,086

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

78,304

48,23863,54415,306Rate of orders received from generalcontractors (Non-consolidated: Facilities
Construction Business) (%)

45.1

32.8

42.6

9.8

217,096

194,018

195,580

1,561

2,379

3,143

2,789

(354)

1.1

1.6

1.4

(0.2)

Orders received (Consolidated)
Orders received from overseas projects(Consolidated)

Rate of orders received from overseas
projects (Consolidated) (%)

pt.

Orders received for renewal construction(Consolidated)

117,619

112,909109,585(3,323)Rate of orders received for renewal
construction (Consolidated) (%)

54.2

58.2

56.0

(2.2)

<Ref.> Net sales for renewal construction(Consolidated)

116,627pt.

114,208

101,147(13,061)21©2021 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Orders Received】
Orders Received by Industry (Consolidated)(Millions of yen)
50,000FY2018FY2019FY202045,00040,00035,00030,00025,00020,00015,00010,0005,000

Government Offices

Miscellaneous business services

Wholesale and Retail Trade

Education

Medical Services

Real Estate

Finance and Insurance

ChemicalMachinery

Food

Pharmaceutical Industry

Automobile

Electrical Machinery

022©2021 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Orders Received】
Main Large-Scale Construction Projects Received
Property nameItem of construction

Type of construction

Location

HVAC systems

New construction work

Tokyo

HVAC and plumbing systems

New construction work

Tochigi

Kawanishi City General Medical Center Development Project (provisional name)Plumbing systems

New construction work

Hyogo

Toyota Technical Center Shimoyama Plumbing and Electrical Systems Project

Plumbing and electrical systems

New construction work

Aichi

Water and sewage treatment systems

ExpansionTokyo

HVAC and plumbing systems

New construction work

Aichi

Water and sewage treatment systems

RenovationTokyo

Chuo University Surugadai Centennial Hall Reconstruction Plan (provisional
name)

HVAC and plumbing systems

New construction work

Tokyo

Nara Medical University ESCO Project

HVAC, Plumbing and Electricalsystems

Renovation

Nara

Yamagata Prefectural Shinjo Hospital

HVAC systems

New construction work

Yamagata

020 Major Renewal No. 667 West 3B Okubo Water Treatment Plant Scraper
Renewal Project

Water and sewage treatment systems

RenewalSaitama

020 Major Renewal No. 668 West 3B Okubo Water Treatment Plant Flocculator
Renewal Project

Water and sewage treatment systems

RenewalSaitama

Maintenance and management

Business consignment

Hiroshima

Kurita Water Industries Ltd. New Research and Development Facility
New Construction Project (provisional name)
Kanae Tochigi Factory No. 3 Building

Kitatama Water Reclamation Center No. 1 Sludge Incineration Systems
Reconstruction Project
Toyota Industries Higashiura Plant No. 2
Kiyose Water Reclamation Center Sludge Transportation System
Reconstruction Project

Otake City Comprehensive Business Consignment of Sewerage Equipment
Maintenance and Management, etc.

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

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【Net Sales】
Main Large-Scale Completed Construction Projects
Property nameItem of construction

Type of construction

Location

Nissay General Training Center

HVAC systems

Renovation

Chiba

Denso Corporation Headquarters PT Development Center

HVAC systems

New construction
work

Aichi

Tokyo Metropolitan Higashiyamato Medical Center for the Severely Disabled

Plumbing systems

RenovationTokyo

The Jikei University School of Medicine New Outpatient Building, etc.

Electrical systems

New construction
work
RenovationTokyo

Chiba University (Hospital) Center for Treatment and Care New Construction
and Other Mechanical Systems Project

HVAC and plumbing systems

New construction
work

Chiba

Toyota Technical Center Shimoyama

HVAC, Plumbing and Electricalsystems

New construction
work

Aichi

Shiseido Osaka Ibaraki Plant/Western Japan Logistics Center

HVAC and plumbing systems

New construction
work

Osaka

HVAC systems

New construction
work

Niigata

HVAC, Plumbing and Electricalsystems

New construction
work

Aichi

Narita International Airport Works to Expand the T1S#53 Make-up Conveyor
and Enhance BHS Capacity

Transportation

Renewal

Chiba

Otake City Comprehensive Business Consignment of Sewerage Equipment
Maintenance and Management, etc.

Maintenance and management

Businessconsignment

Hiroshima

Denka NVP-42 Construction Project
Toyota Motor Technical Department Factory 11 Infrastructure Project

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

24©2021 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Orders Received】
Main Large-Scale Projects Received over 1 Billion Yen (by Industry)
FY2018FY2019FY2020

Office２１4Complex building

１

―

―

Hotel

１

―

―

Factory

１０

３

6

Logistics Center

１

―

―

Multiple – dwelling complex

１

―

―

Hospital and Clinics

１

１

Research institute１

General governmentbuildings

１

Gymnasium

１

Other building interiors

１

23
Projects（55,118
million yen）

2
１

13
Projects（31,945
million yen）―
* Orders received from
customers: 10 projects* Orders received fromgeneral contractors:
13 projects

2
―

3
3
―

27
Projects（48,483
million yen）―
* Orders received from
customers: 9 projects* Orders received fromgeneral contractors:
4 projects

3

Railway, Airport

１

1

Power station, Substation

―

１

―

Waste processing facility

―

―

1

Water treatment plants andsewage plants

１

１

1

Office―１5* Orders received from
customers: 12 projects* Orders received fromgeneral contractors:
15 projects

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【Operating Results】
Century 2025 Results (Consolidated)<Orders Received and Net Sales>
Phase 1

Phase 2

(Millions of yen)

200,000

Orders received
Net sales
Balance carriedforward150,000

100,000

50,000

0
2016

2017

2018

2019

2020

2021
(Forecast)

26©2021 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Operating Results】
Century 2025 Results (Consolidated)<Profit>Phase 2Phase 1

(Millions of yen)（％）

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

Ordinary income (left axis)
経常利益（左軸）
Gross profit margin (right axis)
売上総利益率（右軸）24,00012.0

Operating profit margin (right axis)
営業利益率（右軸）
Ordinary profit margin (right axis)
経常利益率（右軸）20,000

10.0

16,0008.0

12,000

6.0

8,000

4.0

4,000

2.0

0

2016

2017

2018

2019

2020

2021

(Forecast)

0.0

27©2021 SANKI ENGINEERING CO., LTD. All Rights Reserved.

Statements about the future, such as results forecasts included in thesematerials, are based on judgments made according to the information
available to the Company as of May 14. Actual results may differ from thefigures contained herein due to a number of factors.
For inquiries, please contact:
Corporate Communications Department,
SANKI ENGINEERING CO., LTD.

Tel：+81-03-6367-7041

28©2021 SANKI ENGINEERING CO., LTD. All Rights Reserved.