We present new styles and value for space in officeenvironments during a period of transformation.
Kimio Kadowaki
Executive Officer, General Manager of the Facility Systems Division

Growth Strategies and Sustainability Management

The Facility Systems Business was launched in 1989 as an in-house venture,so this year marks its 34th year. We have steadfastly achieved growth byleveraging the strengths of our two business areas of facility systems and smart
building solutions to present new styles and value for space in offices and otherindoor facilities. Both business areas provide services that support working
environments in terms of hardware and operations and can play their part inbuilding the foundations of the future, including DX promotion. We intend tobecome the fourth pillar of Sanki Engineering’s business by consistently being
first on the scene of customer transformations in the coming years.

Facility Systems Business• Change in the post-COVID-19 office market• E xpanded need to introduce effective mechanisms and ICT tools for work style operations
including teleworking•G rowing expectations for the total integration business of building ICT using advanced digitaltechnology• Increased opportunities for reconstructing and reviewing ICT infrastructure driven by DX

Key Initiatives ofthe Medium-Term
Management Plan“Century 2025” Phase 3

FacilitySystemsSmart
BuildingSolutions

KPIs for Medium-Term
Management Plan“Century 2025” Phase 3

Key Initiative 1

Expand consulting service offerings

Key Initiative 2

Enhance sales and production structures for business expansion

Key Initiative 3

Deepen existing business areas

Key Initiative 1

Strengthen the total integration business of building ICT

Key Initiative 2

Expand onsite information and the communication infrastructurebusiness

Key Initiative 3

Nurture specialized engineers

FY2025 Targets

FY2022 Results

Evaluation

Orders received for consulting/facility
engineering

400 million yen

140 million yen◯

Orders received for projects related toNeWSICT*

500 million yen

160 million yen◯

Orders received for project management
and construction work resulting fromconsulting and other sales approaches

2.1 billion yen

1.08 billion yen◎

3.0 billion yen

1.38 billion yen

Facility Systems Business

Opportunities andRisks in the Business
Environment

Expand consulting service offerings

Total*N ext Work Style with ICT

SANKI REPORT 202337

︱Growth Strategies and Sustainability Management ︱Facility Systems Business

Facility Systems Business

Net Sales
Composition Ratio

6%

13.3

Orders
Received(Billions of Yen)

10.8

10.6

(Billions of Yen)billion yen

13.3

12.1

Net Sales

10.9

12.0

11.7
billion yen

11.7 12.0
11.0 11.1 11.1 11.0

Net Sales for
Fiscal 2022

11.7
billion yen

20182019 2020 2021 2022 2023 (FY)Forecast

20182019 2020 2021 2022 2023 (FY)Forecast

Major Results for Fiscal 2022
Facility Systems⃝ Enjoyed steady growth in the consulting business, such asby winning a large order for a non-financial project, resulting
in a favorable flow of orders received.
⃝ Expanded sales channels led to an increase in inquiries.
Smart Building Solutions⃝ In the area of network solutions (ICT), orders received, sales,and profit on sales increased significantly as we focused on
projects with more pronounced investment activity thanthose in the previous fiscal year, such as data center andlogistics facility projects.
⃝ In the area of building management solutions(instrumentation), we focused on sales activities as a system
integrator* (SIer).

Spaces that can be moved to suit the purposeMajor ClientsA chemical manufacturer (head office construction, work styleconsulting, and relocation project management)A securities company (office construction for a call center andrelocation project management)An asset management company (head office construction andrelocation project management)
An Internet service company (construction of a data center andcommunication infrastructure)*A company (“SIer” for short) that undertakes systems development.

Status of Business Operations and Future Outlook toward Achieving Phase 3
Develop Services that Originate from Consulting
We will aggressively promote sales and proposal activities
originating with our consulting services to identify the needfor large-scale office relocation, work style review, and reviewof spaces in the post-pandemic office. We will also develop
solutions that leverage our strengths as a total engineering
company and respond to market needs in light of trends
such as smart offices.
Promote Total Integration Business of Building ICT
We intend to increase orders for building management
solutions by proposing total integration that incorporates
surveillance cameras, security systems, fire alarms, andother equipment when upgrading central monitoring, and38

SANKI REPORT 2023

automated control systems. In terms of network solutions, wewill strive to increase orders through aggressive sales activities
in response to robust demand for capital investments in
information infrastructure for data centers, distribution
warehouses, and commercial facilities.
Develop New Services with Expanded Scope
To expand the scope of our business, we will explore
possibilities for collaboration with startup companies. We willconduct an open innovation program for conceiving andimplementing new value by linking the innovative ideas andtechnologies of startups with Sanki Engineering’s component
technologies to create new services and solutions.