The 2nd Quarter FY2022
Summary of Financial Results
November 11, 2022

The 2nd Quarter FY2022 Financial Summary☆Key Points of Financial Results
Net sales declined year on year, mainly due to customer revisions to some project schedules, impacted by delays in the delivery of materials
and equipment
Orders received increased significantly on the back of large-scale project orders, mainly for industrial HVAC, generating a plentiful balance ofwork brought forward to the next period<Orders> 118.914 billion yen (96.506 billion yen in the same period of the previous fiscal year)● In the Facilities Construction Business, orders for building air conditioning and plumbing, industrial HVAC, and facility systems
increased significantly year on year
● In Environmental Systems, orders fell, mainly due to a fallback from orders for large-scale projects received in Q2 FY2021<Net sales> 73.510 billion yen (84.070 billion yen in the same period of the previous fiscal year)● In Facilities Construction, net sales declined year on year, mainly due to customer revisions to some project schedules, impacted bydelays in the delivery of materials and equipment● In Machinery Systems, net sales declined, with a fall in orders received due to a decrease in work carried over from the start of theperiod for Material Handling Systems, as well as delays in the delivery of parts for Conveyance Systems<Gross profit> Gross profit amounted to 9.161 billion yen (11.058 billion yen in the same period of the previous fiscal year)● Gross profit declined due to the impact of lower net sales, but is expected to improve going forward, with project progress ensuring sales● Gross profit margin fell year on year, with the indirect cost ratio for projects rising due to lower net sales; however, project profitability
improved<Balance of work brought forward> 196.142 billion yen (154.112 billion yen in the same period of the previous fiscal year)● Facilities Construction and Machinery Systems both increased year on year, securing a plentiful volume of work. About half of this is
expected to be converted to sales during the second half of the fiscal year, mainly for industrial HVAC
<FY2022 consolidated results forecasts> (Comparison with initial forecasts)● Orders received: 210 billion yen (+10 billion yen); Net sales: 200 billion yen (unchanged); Ordinary profit: 10 billion yen (unchanged)<Shareholder returns>● Conducted shareholder returns according to medium-term management plan “Century 2025” Phase 3 financial and capital policies● Forecast interim dividend: 35 yen, year-end dividend: 35 yen, annual dividend: 70 yen (no change from initial forecast)● Share repurchases of 1,500 thousand shares planned by the end of FY2022 (80 thousand shares repurchased as of September30)Canceled 1,500 thousand treasury shares on August 15, 2022
● Expected payout ratio: 56.7%, total return ratio: 93.6%

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Contents

1

The 2nd Quarter FY2022 Results2

The 2nd Quarter FY2022
Balance Sheet and Statement of Cash Flows3

FY2022 Forecast

4

Shareholder Returns

5

Supplementary Materials
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1
FY2022 2Q RESULTS

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【Overall Results】
FY2022 2Q Results (Consolidated)(Millions of yen)

September
FY2020

September
FY2021

September
FY2022

Year on year

Rate of
Change (%)

Orders received

103,236

96,506

118,914

22,407

23.2

Balance carried forward

158,534

154,112

196,142

42,02927.3

Net sales

80,864

84,07073,510(10,560)(12.6)

Completed construction contracts

79,64382,82572,228(10,596)(12.8)

Real estate business and others

1,221

1,245

1,281

36

2.9

10,757

11,0589,161(1,896)(17.1)

Completed construction contracts

10,277

10,5058,629(1,876)(17.9)

Real estate business and others

479

552

532

(20)

(3.6)

13.3

13.2

12.5

(0.7)

―

10,251

10,032

10,422389

3.9

Operating profit (loss)

505

1,025

(1,260)(2,285)―Non-operating profit and loss

337

285

509

223

78.3

Ordinary profit (loss)

842

1,310

(751)

(2,061)―

Extraordinary profit and loss

(325)

9

(145)

(154)

―

Profit attributable to owners of parent (loss)

821

863

(770)

(1,633)―Gross profit

Gross profit margin (%)
Selling, general and administrative expensespt.

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

FY2020

FY2021

FY2022

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

Orders received

47,66055,575

43,21149,13256,02340,48249,28856,456

46,974

71,939Net sales

38,25342,611

48,35160,851

38,73745,33251,652

57,46633,45040,059Gross profit

5,120

5,637

7,414

10,582

4,661

6,396

8,901

10,264

3,948

5,213

Gross profit margin (%)

13.4

13.2

15.3

17.4

12.0

14.1

17.2

17.9

11.8

13.0

Selling, general andadministrative expenses

5,274

4,976

5,064

5,939

4,940

5,092

4,976

6,101

5,209

5,212

Operating profit (loss)

(154)

660

2,350

4,642

(278)

1,303

3,924

4,162

(1,260)

0

(0.4)

1.5

4.9

7.6

(0.7)

2.9

7.6

7.2

(3.8)

0.0

Ordinary profit (loss)

66

776

2,527

4,826

(13)

1,324

4,233

4,272

(860)

109

Extraordinary profit and loss

(82)

(243)

(40)

(33)

(1)

11

(97)

(215)

25

(170)

11

809

1,647

3,431

(35)

899

2,820

2,805

(637)

(132)

Operating profit margin (%)

Profit attributable toowners of parent (loss)

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

September
FY2020

Segment

September
FY2021

September
FY2022

Year on year

Rate of
Change (%)

HVAC and Plumbing for
Buildings

33,153

26,81436,361

9,547

35.6

Industrial HVAC

34,553

21,94743,334

21,387

97.5

Electrical Systems

9,802

15,393

14,578

(815)

(5.3)

Facility Systems

5,393

5,041

6,618

1,576

31.3

82,902

69,196

100,893

31,696

45.8

Machinery Systems

4,268

4,972

5,353

380

7.7

Environmental Systems

15,04921,331

11,667(9,663)(45.3)

Total of Plants & Machinery
Systems Business

19,31826,304

17,021(9,283)(35.3)

102,22195,500117,914

22,413

23.5

1,179

1,197

1,235

38

3.2

Others

274

275

242

(33)

(12.2)

Adjustments*

(438)

(467)

(477)

(10)

―

96,506

118,914

22,407

23.2

Total of Facilities Construction
Business

Sub-total
Real Estate Business＊各セグメントに含まれている内部取引は、「調整額」で消去している
Total
103,236* Adjustments eliminate inter-segment transactions included in each segment.

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

September
FY2020

Segment

September
FY2021

September
FY2022

Year on year

Rate of
Change (%)

HVAC and Plumbing for
Buildings

22,614

23,15923,612453

2.0

Industrial HVAC

29,35528,55921,751(6,808)(23.8)

Electrical Systems

11,44011,033

9,953(1,080)(9.8)

Facility Systems

4,397

4,313

3,890

(422)

(9.8)

67,80767,06559,208(7,857)(11.7)

Machinery Systems

4,459

4,952

3,151

(1,800)(36.4)

Environmental Systems

7,610

10,879

9,916

(963)

(8.9)

Total of Plants & Machinery
Systems Business

12,06915,832

13,068(2,763)(17.5)

79,87682,897

72,276(10,620)(12.8)

1,179

1,197

1,235

38

3.2

Others

366

257

240

(17)

(6.8)

Adjustments*

(557)

(282)

(242)

40

―

84,07073,510(10,560)(12.6)

Total of Facilities Construction
Business

Sub-total
Real Estate Business＊各セグメントに含まれている内部取引は、「調整額」で消去している
Total
80,864* Adjustments eliminate inter-segment transactions included in each segment.

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

September
FY2020

September
FY2021

September
FY2022

Year on year

Rate of
Change (%)

8,375

8,149

6,514

(1,635)(20.1)

663

594

623

29

4.9

9,039

8,744

7,138

(1,606)(18.4)

Machinery Systems

707

819

244

(575)

(70.2)

Environmental Systems

655

1,059

1,337

277

26.2

1,362

1,878

1,581

(297)

(15.8)

10,402

10,6238,719(1,903)(17.9)

Real Estate Business

443

504

491

(13)

(2.7)

Others

16

18

4

(13)

(74.6)

(105)

(88)

(53)

34

―

10,757

11,0589,161(1,896)(17.1)

Segment
HVAC and Plumbing for
Buildings/Industrial HVAC
/Electrical Systems

Gross Profit by segment

Facility Systems
Total of Facilities Construction
Business

Total of Plants & Machinery Systems
Business
Sub-total

Adjustments*
Total

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2
FY2022 2Q
BALANCE SHEET AND STATEMENT OF CASH FLOWS

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【Financial Conditions】
Balance Sheet (Consolidated)
End of
FY2021A
Current assets(Millions of yen)

September
FY2022
B

Diff.
B–A

Rate ofchange (%)

September
FY2021

125,742

102,839(22,903)(18.2)

107,859

Cash and deposits

42,77937,239(5,540)(13.0)

32,742

Securities

5,999

5,999

(0)

(0.0)

3,999

Notes receivable – trade, electronicallyrecorded monetary claims –operating, accounts
receivable from completed construction
contracts and other, and contract assets

66,761

47,636(19,125)(28.6)

59,78457,866

57,101

(764)

(1.3)

56,25830,447

29,775

(671)

(2.2)

29,653

79,21059,764(19,446)(24.5)

61,312

Electronically recorded obligations - operating

2,588

1,630

(957)

(37.0)

788

Accounts payable on construction contracts

37,932

26,816(11,115)(29.3)

33,178Non-current liabilities

10,121

9,843

(277)

(2.7)

12,004

Total net assets

94,27890,333(3,944)(4.2)

90,800Treasury shares(5,243)(3,122)

2,121―(3,876)

Total liabilities and net assets

183,609

159,941(23,668)(12.9)

164,118

Book-value per share (yen)1,685.20

1,613.62(71.58)(4.2)

1,595.55

Equity ratio (%)

51.2

56.4

―

55.1

Interest-bearing liabilities (consolidated)

9,205

8,511

(7.5)

9,899

Non-current assets
Investment securities

Current liabilities

5.2pt.
(694)

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【CF】
Statement of Cash Flows (Consolidated)○The balance of cash and cash equivalents decreased from the end of the previous fiscal year
・ The decrease in cash flow from operating activities was mainly due to the payment of trade payables and income taxes,
despite progress in collecting trade receivables
・ The increase in cash flow from investing activities was due to the proceeds from redemption of securities, which more thanoffset purchases of property, plant and equipment and intangible assets
・ The decrease in cash flow from financing activities was mainly due to the repayment of borrowings and the payment ofdividends(Millions of yen)
FY2018FY2019FY2020

FY2021

September
FY2022September
FY2021

Cash flows from operating
activities

6,786

11,940(483)

18,529(1,201)

1,852

Cash flows from investing
activities(3,775)(303)(1,423)(3,384)216(1,832)

Cash flows from financing
activities(5,215)(8,955)(6,974)(7,518)(3,668)(3,421)

Cash and cash equivalents
at end of period

42,61245,94637,08744,77940,23833,742

Capital investment(including intangible assets)

6,110

2,197

2,178

1,620

441

740

Depreciation and amortization

1,340

1,643

1,700

1,587

735

796

12
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3
FY2022 FORECAST

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【Overall Forecast】
FY2022 Full-Year Forecast (Consolidated)
FY2019FY2020

FY2021(Millions of yen)

FY2022
FY2022
forecast
forecast(Interim(Interim
forecast from forecast from
August 5)
November 11)

A

B

Increase/
Decrease
B–A

Rate of
Change(%)

Orders received

194,018

195,580

202,250

200,000

210,000

10,000

5.0

Balance carried forward

136,163

141,676

150,737

150,737

160,737

10,000

6.6

Net sales

207,684

190,067

193,189

200,000

200,000――

Gross profit

32,11028,75430,22331,50031,500

―

―

15.5

15.1

15.6

15.8

15.8

―

―

Operating profit

10,674

7,498

9,112

9,500

9,500

―

―

Ordinary profit

11,224

8,196

9,817

10,00010,000――

Profit attributable to ownersof parent

7,576

5,901

6,489

6,900

6,900

―

―

Regular dividends per share
(yen)

70

70

70

70

70

―

―

Extra dividends per share
(yen)

25

10

15

―

―

―

―

95

80

85

70

70

―

―

Gross profit margin (%)

Cash dividends per share(total)(yen)14©2022 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Forecast of Orders Received and Net Sales】
FY2022 Forecast of Orders Received andNet Sales by Segment (Consolidated)
FY2022
Orders Received Forecast

Segment(Millions of yen)

FY2022
Net sales Forecast

HVAC and Plumbing for Buildings

64,00058,000Industrial HVAC

72,00065,000Electrical Systems

26,00026,000

Facility Systems

13,00013,000175,000

162,000

Machinery Systems

13,00010,000

Environmental Systems

20,00026,00033,00036,000208,000

198,000

2,400

2,400

Others500

500

Adjustments*

(900)

(900)

210,000

200,000

Total of Facilities Construction BusinessTotal of Plants & Machinery Systems
Business
Sub Total
Real Estate Business

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

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4
SHAREHOLDER RETURNS

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【Shareholder Returns】
Dividends and Others
・ Conducted shareholder returns according to medium-term management plan “Century 2025” Phase 3 financial and capital policies
・ Forecast interim dividend: 35 yen, year-end dividend: 35 yen, annual dividend: 70 yen (no change from initial forecast)・ Share repurchases of 1,500 thousand shares planned by the end of FY2022 (80 thousand shares repurchased as of September 30)
Canceled 1,500 thousand treasury shares on August 15, 2022
・ Expected payout ratio: 56.7%, total return ratio: 93.6%

FY2019Earnings per share (yen)FY2020

FY2021

September
FY2022

FY2021(Forecast)

128.51103.12115.13(13.79)123.51

Cash dividends per share:
regular dividends (yen)

70

70

70

35

70

Cash dividends per share:
extra dividends (yen)

25

10

15

―

―

Cash dividends per share (yen)

95

80

85

35

70

Payout ratio (consolidated) (%)

73.9

77.6

73.8

56.7

Total return ratio (%)

111.4

97.3

95.7

93.6

Number of shareholders at end of FY

4,216

14,861

14,524

13,154―

Share price at end of FY (yen)

1,211

1,453

1,398

1,585

―

Purchase of treasury shares(thousand shares)

1,958

1,000

1,000

80

1,500

Cancellation of treasury shares(thousand shares)

2,000

1,000

―

1,500

1,500

ROE (%)

8.6

6.6

7.0

7.3

ROA (%)

6.0

4.7

5.5

5.7

17

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【Shareholder Returns】

Phase2Phase1

Phase3(Millions of yen)
10,000160.0%
148.9%

Value of treasury shares acquired
自己株式取得額（左軸）(left axis)
Amount of dividends (left axis)
配当金支払額（左軸）
Total return ratio (right axis)
総還元性向（右軸）140.0%

Payout ratio (right axis)
配当性向（右軸）

2,899

8,000

120.0%
111.4%
95.7%
97.3%
93.6%

6,000
1,171

3,679
1,191

4,000

73.9%

77.6%

1,438

2,000

60.0%
56.7%

55.5%

4,568

2,136

2016

2017

40.0%

4,773
3,910

3,595

1,906

←50% Payout ratio

5,543
40.0%

40.6%

80.0%

73.8%

52.9%
40.6%

2,550

100.0%

20.0%

0

0.0%
2018

2019

2020

2021

2022

(Forecast)18©2022 SANKI ENGINEERING CO., LTD. All Rights Reserved.

5
SUPPLEMENTARY MATERIALS

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【Orders Received】
Orders Received by Type(Millions of yen)
FY2019Full-year

FY2020Full-year

FY2021
Full-year

September
FY2021A

September
FY2022
B

147,191

149,278

151,747

65,501

97,112

31,610Orders received from general contractors(Non-consolidated: Facilities Construction Business)

48,23863,54462,29922,02644,83422,807

Rate of orders received from generalcontractors (Non-consolidated: Facilities
Construction Business) (%)

32.8

42.6

41.1

33.6

46.2

12.6

Orders received (Non-consolidated: Facilities
Construction Business)

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

Diff.
B–A

pt.

194,018

195,580

202,250

96,506

118,914

22,407

3,143

2,789

4,283

1,796

1,439

(357)

1.6

1.4

2.1

1.9

1.2

(0.7)
pt.

Orders received for renewal construction(Consolidated)

112,909109,585

108,561

49,623

61,906

12,283Rate of orders received for renewal
construction (Consolidated) (%)

58.2

56.0

53.7

51.4

52.1

0.7

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

114,208

101,147

107,855

45,80242,280(3,521)20©2022 SANKI ENGINEERING CO., LTD. All Rights Reserved.

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

30,000

September 2020
September 2021
September 2022

25,00020,00015,00010,0005,000

Government Offices

Miscellaneous businessservices

Wholesale and Retail Trade

Education

Medical Services

Real Estate

Finance and Insurance

ChemicalMachinery

Food

Pharmaceutical Industry

Automobile

Electrical Machinery

021©2022 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Orders Received / Net Sales 】
Main Large-Scale Projects Received andLarge-Scale Completed Construction Projects〇Main Large-Scale Projects Received
Property nameItem of construction

Type of construction

Location

Plumbing systems

New construction work

Tokyo

NEC Fuchu Workplace New Building Construction (tentative name)

HVAC and plumbing systems

New construction workTokyo

Panasonic Corporation Suehirocho Building Project (tentative name)

HVAC and plumbing systems

New construction work

Osaka

Shimoyama Phase IV Facilities Construction Project – Building 3

HVAC and plumbing systems

New construction work

Aichi

Kasugai Water Purification Plant Activated Carbon Injection Equipment
Project

Water and sewage treatment
systems

New construction work

Aichi

Nihombashi 1-Chome Central Type 1 Urban Redevelopment

8 other projects〇Main Large-Scale Completed Construction Projects
Property nameItem of construction

Type of construction

Location

HVAC and plumbing systems

New construction work

Kyoto

Plumbing systems

New construction work

Hyogo

Waste treatment facility

New construction work

ShimaneNippon Life Yodoyabashi Building New Construction Project

HVAC, plumbing, and electricalsystems

New construction work

Osaka

Biofermin Pharmaceutical New Factory Construction Project

HVAC systems

New construction work

Hyogo

Plumbing and electrical systems

New construction work

Aichi

Nidec Corporation Mukomachi Project C Building Construction and Other
Works
Kawanishi City Medical Center
Ochi Clean Center New Combustible Waste Joint Processing Facility
Construction Project

Toyota Technical Center Shimoyama Plumbing and Electrical Systems
Project* The property name is the name being used by the Company. This may differ from the name used on the construction contract.

22©2022 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Orders Received】
Main Large-Scale Projects Received over 1 Billion Yen (by Building Use)
September FY2020

September FY2021

September FY2022

Office3―

3

Factory

3―

4

Research institute

3

―

1

Hospital / clinic

1

1

1

Other building
interiors

1

2

1

14 Projects

7 Projects―(19,863 million yen)―

(35,409 million yen)―

* Orders received from
customers: 6 projects

1* Orders received from
customers: 5 projects―* Orders received fromgeneral contractors:
1 project

1* Orders received fromgeneral contractors:
8 projects

13 Projects

Railway / airport

1(26,427 million yen)

School building /auditorium―* Orders received from
customers: 5 projects

Complex building―* Orders received fromgeneral contractors:
9 projects

Waste processing
facility

12―

Water treatment
plant / sewage plant

1

2

1

23
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【Operating Results】
Century 2025 Results (Consolidated)<Orders Received and Net Sales>
Phase1

Phase2Phase3(Millions of yen)
200,000

Orders received

Net sales
150,000

Balance carriedforward100,000

50,000

0
2016

2017

2018

2019

2020

2021

2022
(Forecast)24©2022 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Operating Results】

Century 2025 Results (Consolidated)<Profit>Phase3Phase2Phase1（％）(Millions of yen)
36,00018.0

32,000

16.0

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

28,00014.0

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

24,00012.0

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

2022

0.0

(Forecast)25©2022 SANKI ENGINEERING CO., LTD. All Rights Reserved.

Statements about the future, such as results forecasts included in these materials, are based on judgments made according to
the information available to the Company as of November 11. Actual results may differ from the figures contained herein due toa number of factors.
For inquiries, please contact:
Corporate Communications Department,
SANKI ENGINEERING CO., LTD.
Tel：+81-3-6367-7041

26©2022 SANKI ENGINEERING CO., LTD. All Rights Reserved.