Status of Business Progressin the Medium-Term Management Plan“Century 2025”Phase 2
May 15, 2020

FY2019

[Consolidated Orders Received]
SANKI VITAL PLAN

“Century 2025”(Million yen)Phase1240,000

Until FY2021

217,096

220,000
200,000

180,000

Phase２

Until FY2025

175,291

165,800

168,295

173,398

185,880

191,113

FY2016FY2017

194,018

183,270

160,000
140,000
120,000
100,000
80,00060,00040,00020,0000FY2011FY2012FY2013

FY2014FY2015FY2018FY20192©2020 SANKI ENGINEERING CO., LTD. All Rights Reserved.

[Consolidated Net Sales]“Century 2025”

SANKI VITAL PLAN

Until FY2025(Million yen)Phase２Phase1225,000

212,314

Until FY2021

207,684

200,000

171,496

175,000

179,598

178,901

FY2014FY2015

168,512170,157

147,994 154,658
150,000

125,000

100,000

75,00050,00025,0000FY2011FY2012FY2013

Net sales

FY2016FY2017FY2018FY2019Planned value

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[Consolidated Gross Profit]“Century 2025”

SANKI VITAL PLAN
Million yen

Phase２Phase135,000

Until FY2025

31,684

32,110FY2018FY2019Until FY2021

30,00025,06025,00020,00022,92918,237

17,590FY2011FY2012

18,423

17,966FY2013

FY2014

22,53815,00010,0005,0000Gross profit

FY2015FY2016FY2017

Planned value

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[Consolidated Gross Profit Margin](%)“Century 2025”

SANKI VITAL PLAN

Until FY2025

18

Phase２Phase1

Until FY2021

171614.7

1514.9Plannedvalue

13.4

1415.512.8

1312.31211.410.7

1110.01098
FY2011FY2012Fy2013

FY2014FY2015Gross profit margin

FY2016FY2017FY2018FY2019Planned value

5©2020 SANKI ENGINEERING CO., LTD. All Rights Reserved.

[Positioning of the Long-Term Vision and Medium-Term
Management Plan](First year)
FY2019 - FY2021
FY2016 - FY2018

Phase 2Phase 1

Enhance Reliability

FY2022 - FY2025

Phase 3Company of Choice

Improve component technologies
and achieve stable growth◆ Promote Growth
Strategies
Pursue future growth in the areasof technology and business◆ Enhance the SankiBrand
Develop human resources thatpossess the Sanki spirit

Further pursue quality• Improve construction productivity• Meet to energy saving and labor
reduction needs• Promote technological R&D• Continue to receive orders for stockprojects• Create a better work conditions• Improve internal communication◆ Disclose financial &capital policies
and ESG policies◆ Reinforce Information Transmission

Increasing reliability and becoming
a company of choice◆ Strengthen CoreBusinesses

Refining Technical Skills
and Human Resources toEnhance Quality

Enhance Quality

Long-Term Vision“Century 2025”
Become the company
that is more likely to bechosen by stakeholders

6©2020 SANKI ENGINEERING CO., LTD. All Rights Reserved.

[Phase 2] Performance Targets and Results
Phase 2 (FY2019 to FY2021) targets
FY2019 targets

FY2019 results

FY2020 targetsSales

200.0 billion yen

207.6 billion yen

Gross profit(margin)30.0 billion yen

32.1 billion yen

31.0 billion yen

32.0 billion yen(15%)(15.5%)(15.5%)(16.0%)

Ordinary income(%)

9.00 billion yen

11.2 billion yen

9.5 billion yen

10.0 billion yen(4.5%)(5.4%)(4.8%)(5.0%)

200.0 billion yen

Dividend per share

Phase 2 (FY2019 to FY2021)
operating targets

FY2019 results

Operatingprofit ratio

5.0% or more (final fiscal year)

5.4%Dividend

Annual dividend per share:
60 yen or more

Annual dividend:95 yen

Approx. 5 million shares

Approx. 1.95 millionshares

Acquisition oftreasury
stock

FY2021 targets(Yen)
100Phase 1
25502010152020

FY2016FY201770400Total returnratio

70% or moreROE

8.0% or more (final fiscal year)

111.4%

Regular dividend

8.6%

FY2018FY2019Extra dividend

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[Status of Measures (1)]◆Strengthen Core Businesses (1)(1) Facilities Construction Business
Maintained solid results by ensuring appropriate work processes beforeorders are received and construction commences, by implementing nextgeneration site management systems such as work-sharing that leverages
the rollout of on-site documents creation support systems, and byincreasing the efficiency of allocation of personnel
・Reduced problems during construction
・Used the Sanki Techno Center to expand technology, skills, and safety
management training
・Promoted work-style reforms for construction sites (through specialist
site-support departments)
・Conducted cutting-edge job management using BIM
・Expanded application of energy-efficient construction technology inorder to improve productivity

8©2020 SANKI ENGINEERING CO., LTD. All Rights Reserved.

[Status of Measures (2)]◆Strengthen Core Businesses (2)(2) Facility Systems Business・Rolled out new services by organizations that promote specialist consulting
・Developed construction departments in relation to BCPs, security, and central
monitoring, etc.
(3) Machinery Systems Business・Commenced full-scale operation of the new Yamato Product Center (YPC) plant・Promoted development of next-generation technologies such as hybrid systems
that combine robotics and transport equipment, with a focus on the YPC(4) Environmental Systems Business・Supported environmental social infrastructure that is essential to ensure stable
lifestyles, and contributed to SDGs
・Conducted activities to receive orders for DBO projects for public facilities, andcontinuously expanded energy-saving and energy-producing projects
9©2020 SANKI ENGINEERING CO., LTD. All Rights Reserved.

[Status of Measures (3)]◆Growth Strategy
Full-scale operation of the Yamato Product Center・Factory in Yamato City, Kanagawa Prefecture,operated by the Machinery Systems Business since
September＜Yamato Product Center＞
Full-scale operation in September 2019

⇒ Completion of the STeP project*
The series of improvements conductedfrom fiscal 2016 is complete.

<Interior of the Yamato Product Center >* The STeP (Sanki Techno Park) ProjectA project to redevelop the land and buildings on the Sanki Yamato Site (theSanki Yamato Building and the former Yamato Engineering Center), a realestate holding of Sanki Engineering.

10©2020 SANKI ENGINEERING CO., LTD. All Rights Reserved.

[Status of Measures (4)]◆Enhance the Sanki Brand (1)Improve Technology

18th Electrical Construction
Quality Competition

Special joint safety patrol

78th National Industrial Safety
and Health Convention

Social Contribution

Company and residents’ conference

Area beautification activities(conducted at each location)

11©2020 SANKI ENGINEERING CO., LTD. All Rights Reserved.

[Status of Measures (5)]◆Enhance the Sanki Brand (2)Smile Work Guidelines
Developed in order to facilitate more flexible work-styles as part of the
Smile Project, which began in 2015.
<Basic Guidelines><Human resources Development Guidelines>

These guidelines outline basic principles to improve the environment in which all of

These guidelines outline basic principles for professional development in arange of situations and circumstances, not limited to relationships between
managers and subordinates. Professional development allows theprovision of safe and reliable equipment, goods, and services to customers,and as a result, to increase customer satisfaction and gain the trust ofcustomers.

the employees of the Sanki Group work together. We hope to create a comfortableand efficient workplace based on mutual respect.
1. Give due consideration to volume and difficulty of work assigned to employeeswith limited knowledge or experience, and promptly provide support without
taking excessive time
2. Be aware of physical and mental differences, and give consideration to physicalload, late-night work, and returning home, etc., for colleagues of a different
gender
3. Be aware of the severity and situation of colleagues with physical or mental

1. Educate each person as a member of society, rather than as a memberof the Sanki Group
2. Be aware of improving long-term abilities without paying undue
attention to the short-term concern of making an immediate impact,
and conduct strategic education accordingly
3. Give appropriate instructions, remaining aware of individual
characteristics such as beliefs, physical strength, knowledge, andexperiencehandicap, and give consideration to the content of work assigned to them
4. Be aware and interested in the different lifestyles, customs, and values, etc., ofcolleagues from overseas
5.

Be aware of the life circumstances of each individual, irrespective of gender,and support each other

4. Regularly follow up to ensure that professional development isproceeding according to expectations. If professional development is
not going well, eliminate the cause of such, and correct course without
delay
5. Regularly conduct interviews, and ensure individuals track their owndevelopment. Work to ensure interactive communication with others
while listening to their opinions and feelings

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[Status of Measures (6)]◆ESG
Status of Measures

ＥEnvironment

ＳSociety・Chubu branch: Received Automotive Eco-Factory certification
・Dispatched employees to the National Institute of Polar Research
Japanese Antarctic Research Expedition
・Continued contributions through SANKI YOU eco contribution points

・Developed the Company’s original Smile Work Guidelines aimed atwork-style reforms (see p12)
・Held the 4th Ladies’ Conference
・Provided blood donation opportunities at the Sanki Techno Center(There is a shortage of blood for transfusions due to the impact of the novel coronavirus
disease (COVID-19))

・Scored 3.5 stars in the Nikkei Smart Work Survey
・Continued to support culture and sport

ＧGovernance・Conducted ongoing activities based on the Sanki Engineering
Corporate Governance Guidelines

13©2020 SANKI ENGINEERING CO., LTD. All Rights Reserved.

[Status of Measures (7)]◆ Strengthen dissemination of information
Increased dissemination of information through exhibitions, etc.

ENEX2020

4th Smart Building Expo

Tokyo Bay Thanksgiving Festival 2019

New advertisement
Hakodate Water Expo 2019

3rd Kochi Future of Sewerage Symposium

14©2020 SANKI ENGINEERING CO., LTD. All Rights Reserved.

[Measures Against Novel Coronavirus Disease (COVID-19)]〇Establishment of a response headquarters
The Company established a response headquarters led by the President, in order to review theGroup’s measures relating to preventing the spread of novel coronavirus disease (COVID-19) andresponses and business continuation in the case of infection〇Basic policy towards the government’s declaration of a state of emergency
1. Basic code of conduct to prevent spread of infection
・Do not go outside unless urgent and essential. Avoid the 3Cs
2. Emergency work systems
・Identify important work and reduce work volume
・Dispersed workplaces
・Promote working from home
・Implement staggered work times
3. Measures at construction sites
・Also implement emergency work systems at construction sites
・Consult with clients and contractors with regard to the continuation of work depending on thecircumstances of individual jobs
・Share information with partners and affiliates based on the results of consultations〇Impact on results
Although results have been incorporated that take into account the impact of the novel
coronavirus pandemic on business, business results may be further impacted due tofuture spread of the impact of the novel coronavirus pandemic.
15©2020 SANKI ENGINEERING CO., LTD. All Rights Reserved.

Remarks on Business Forecast
The descriptions contained in these materials, except for those as to past or present facts, are based on
anticipations, assumptions, evaluations and estimations in light of the information available as of May 15, 2020.
Therefore, the actual results may differ from those presented herein as a consequence of various factors,
including uncertainties and prospective changes in the economic environment.
<Major factors>● Credit exposures of client companies.
● Sudden changes in material and equipment cost and labor cost.

● Stock Market fluctuations.
● Increase in retirement benefits or debts.
● Country risk.
● Accident or disaster in facilities construction and other.
● Outbreak of the unprofitable project.

● Risk in the Real Estate Business.

For inquiries, please contact:● Risk of legal action.

Corporate Communications
Department● Risk of legal regulation.
● Outbreak to the natural disasters.

TEL: +81-3-6367-7041● Fluctuations in private capital investment

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