The 3rd Quarter FY2015
Summary of Financial Results
February 8, 2016

Sanki Engineering Co., Ltd.
1Contents
Key points of Financial Results
The 3rd Quarter FY 2015 Results (Consolidated)
Orders Received by Segment (Consolidated)
Sales by Segment (Consolidated)

Ordinary income and loss by Segment（ Consolidated）
Quarterly Results (Consolidated)
Operating Results over the Last 5 Years (Consolidated)
Orders Received by Industry (Consolidated)
Orders Received by Type
Major Projects
Major Projects over 1 billion yen
Increase and Decrease Factor of Ordinary income
Balance Sheet (Consolidated)
Statements of Cash Flows (Consolidated)
FY2015 Forecast (Consolidated)
FY2015 Orders Received Forecast by Segment (Consolidated)
FY2015 Sales Forecast by Segment (Consolidated)
Management Direction for Fiscal 2015
Management philosophy-Sanki Engineering Group

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Key Points of Financial Results〈Order received〉
Orders received of Facilities Construction Business increased becauseof result of industrial HVAC such as Electrical machinery andAutomobile , etc. under the influence of manufactures returning todomestic. Orders received of Plant & Machinery Systems Businessincreased because of large-scale project order received establishmentof Machinery Systems and Environmental Systems.

〈Sales ・ Profit〉
Sales changed relatively flat year-on-year basis , but Gross profit
margin was improved by improvement of the order environment andthorough cost management. As a result gross profit exceeded year-onyear basis , Operating income , Ordinary income and Profit attributableto owners of parent changed smoothly and were improved.
3

【 Overall Results 】
The 3rd Quarter FY 2015 Results (Consolidated)(Millions of yen)・Orders received exceeded year-on-year basis , Sales changed relatively flat.
・Gross profit , Operating income , Ordinary income and Profit attributable to owners of parent were improved largely.
Yearonyear

December
2014

December
2015

Orders received

137,172

147,517

10,345

7.5

Balance carried forward

122,738

127,033

4,294

3.5

Sales

122,653

122,503

(149)

(0.1)

121,670

121,264

(405)

(0.3)

982

1,238

256

26.1

9,678

14,146

4,467

46.2

9,433

13,845

4,411

46.8

245

301

56

22.9

7.9

11.5

3.6

―

Selling, general and administrative expenses

11,183

11,7095264.7

Operating income (loss)(1,504)

2,436

3,941

―

Ordinary income (loss)

(713)

3,079

3,793

―

Profit attributable to owners of parent (loss)

(207)

2,045

2,253

―

Completed construction contracts
Real Estate and Others
Gross profit
Completed construction contracts
Real Estate and Others

Operating profit margin(%)

Rate ofchange(%)＊With accounting standards about the combine after the revision having been applied from the fiscal year, “profit attributable toowners of parent” in this consolidate account year expresses “net income” in previous consolidated account year.

4【 Orders Received 】
Orders Received by Segment (Consolidated)
・Orders received of Industrial HVAC and Facility Systems was increased in Facilities construction business.
・Orders received of Machinery systems and Environmental Systems exceeded year-on-year basis.
(Millions of yen)
December
2014

Segment

December
2015

Year on year

Rate ofchange(%)

HVAC and plumbing for Buildings

57,86456,509(1,354)(2.3)

Industrial HVAC

34,48538,977

4,492

13.0

Electrical Systems

19,21818,239

(979)

(5.1)

Facility Systems

7,120

8,745

1,625

22.8

118,689

122,472

3,7833.2

Machinery Systems

4,492

8,684

4,192

93.3

Environmental Systems

13,271

15,670

2,399

18.1

Plant & Machinery Systems Business total

17,76324,355

6,591

37.1

Sub-total

136,453

146,827

10,374

7.6

Real Estate

912

1,148

236

26.0

Others

353

411

58

16.6

Adjustments

(546)

(870)

(324)

―

137,172

147,517

10,345

7.5

Facilities Construction Business total

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

5

【Sales】
Sales by Segment (Consolidated)
・Sales of Facility Systems was increased in Facilities construction business.
・Sales of Machinery Systems was decreased because of decrease of order received in last year.
December
2014

Segment

December
2015(Millions of yen)

Year on year

Rate ofchange(%)

HVAC and plumbing for Buildings

50,23545,088(5,146)(10.2)

Industrial HVAC

33,15435,8802,726

8.2

Electrical Systems

14,44915,573

1,123

7.8

Facility Systems

6,376

7,124

747

11.7

104,215

103,667(548)(0.5)

Machinery Systems

7,437

5,811

(1,625)(21.9)

Environmental Systems

10,256

12,038

1,781

17.4

17,694

17,850156

0.9

121,909

121,517(392)(0.3)

Real Estate

912

1,148

236

26.0

Others

364

401

37

10.3

Adjustments

(533)

(564)

(31)

―

122,653

122,503

(149)

(0.1)

Facilities Construction Business total

Plant & Machinery Systems Business total
Sub-total

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

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【Profit】
Ordinary income and loss by Segment（ Consolidated）(Millions of yen)
December
2014

December
2015

Year on year

Rate ofchange(%)

(987)

2,869

3,856

－

20

(77)

(97)

－(797)

(867)

(70)

－

(1,763)

1,924

3,688－

Real Estate

176164(11)(6.8)

Others

35

5216

46.8

Adjustments

838

938

100

12.0(713)

3,079

3,793

－Segment

Facilities Construction
Machinery Systems

Segment Profit (loss)

Environmental Systems
Sub-total

Total＊ Adjustment of profit and loss by Segment to all company profit and loss that amount distribute into each segment.

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【Overall Result】
Quarterly Results (Consolidated)
・Gross profit margin was improved intermittently by thorough cost management and improvement of the order(Millions of yen)environment.
FY 2014

FY 2015

1Q

2Q

3Q

4Q

1Q

2Q

3Q

Orders received

42,48938,75855,92336,226

46,38552,82048,311

Sales

32,82542,682

47,14556,94534,49540,98547,022Gross profit

1,700

3,224

4,753

8,287

3,291

4,812

6,043

5.2

7.6

10.1

14.6

9.5

11.7

12.9

Selling, general and administrative expenses

3,786

3,845

3,552

3,831

3,921

4,005

3,783

Operating income (loss)(2,085)

(620)

1,201

4,456

(630)

807

2,259

(6.4)

(1.5)

2.5

7.8

(1.8)

2.0

4.8

(1,846)

(478)

1,612

4,522

(254)

778

2,554-

18116

312

55(30)(96)(1,215)

(111)

1,119

2,669

(266)

521

1,790

Provision for loss on construction contracts (balance at the endof period)

724

1,236

989

1,314

1,045

777

828

Provision (or reversal of provision) for loss (gain) on
construction contracts

157

511

(246)

324

(269)

(267)

50

7,329

8,131

5,376

4,388

2,451

1,661

1,090

Gross profit margin

Operating profit margin
Ordinary income (loss)
Extraordinary income (gain)
Profit attributable to owners of parent (loss)

Balance carried forward (at the end of period) subjected toprovision for loss on construction contracts＊ With accounting standards about the combine after the revision having been applied from the fiscal year, “profit attributable to8owners of parent” in this consolidate account year expresses “net income” of December 2014 in previous consolidated account year.

【 Operating Results】
Operating Results over the Last 5 Years (Consolidated)(Millions of yen)Orders receivedand Sales

Profit200,000

Ordinary income (right axis)
150,000
5,000
Net income (right axis)

100,000

Orders received (left axis)

0Sales (left axis)
50,0000-5,000
1112131415FY（Forecast）＊ With accounting standards about the combine after the revision having been applied from the fiscal year, “profit attributable toowners of parent” in this consolidate account year expresses “net income” of FY2011~ FY2014.

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

30,00020,00015,000December 2014
December 2015

24,40525,00019,157

15,542
11,725

10,00010,974

11,010 7,604

8,411
5,741

2,316

8,155
6,707
5,289
4,660
5,058
3,730

Medical services

Wholesale and retail
trade

Miscellaneous businessservices

Education

Real estate

1,986

Finance and Insurance

4,814

Food

Automobile

Electrical Machinery

Pharmaceutical Industry

03,815 4,472

Chemical

6,226

5,914

Machinery

5,000

10,855
8,41310【Orders Received】
Order Received by Type(Millions of yen)

＊FY2012FY2013

FY2014

December
2014

December
2015

Construction orders received from
General contractor(Non-consolidated)

49.3

53.7

48.0

50.7

50.8

0.1

Construction orders received fromoverseas project (Consolidated)

1,347

3,055

2,931

2,188

1,744(444)Rate of Construction orders
received from overseas project(Consolidated)

0.8

1.8

1.7

1.6

1.2(0.4)

Renewal construction(Consolidated)

56.9

52.6

53.8

54.9

51.4

(3.5)

Diff.

<Ref.>

Orders received for renewalconstruction (Consolidated)

94,402

88,473

93,33975,37075,847477<Ref.>

Sales for renewal construction(Consolidated)

87,533

98,02496,46859,04362,8583,815＊The ratios and amounts are those in Facilities construction business unit.

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【Orders Received】
Major Project・Asahi Nakanoshima Western Division tower new construction（Air Conditioning (HVAC) works)〈 New construction work 〉
・The second factory of the IKEDA MOHANDO CO.,LTD.
（Air Conditioning (HVAC) works)〈 New construction work 〉
・Nihonbashi Muromachi 3chome area The 1srt urban Redevelopment
BusinessA new construction work
（Plumbing works）〈 New construction work 〉
・TDK Corporation Ferrite mother factory（Air Conditioning (HVAC) works and Plumbing works )〈 New construction work 〉
・Syuutou Environmental hygiene association cleaning center（Waste treatment works）〈Overall renovation work〉
・Nomi bika Center（Waste treatment works）＜Renovation work＞
・Minamisouma City Clean Haramachi Center（ Waste treatment works ）＜ Renovation work ＞
Other 8 projects
12【Orders Received】
Major Project over 1 billion yen(By industry)
December 2014

December 2015

Office13Complex building―

1

Commercial facility

1

1Factory―

3

School―1

Hospital

2

Research institute2

9Projects（16,733million yen）
＊Construction orders
received from
Costumer：2 Projects

2
1―

Government office building

1

Waste processing facility

1

Water and sewage
treatment facility

1―

Other―

1＊Construction orders
received from
General contractor：7 Projects

316Projects（27,856million yen）
＊Construction orders
received from
Costumer：5 Projects＊Construction orders
received from
General contractor：11 Projects

13

【Profit】
Increase and Decrease Factor of Ordinary Income (Consolidated)(Millions of yen)

December 2014

(713)

3,557

Improvement of Gross profit margin

Decrease Provision for loss on construction contracts

910

Increase Selling , General and Administrative expenses(526)

Decrease Non-operating income

(148)
3,793

Total Ordinary Income
December 2015

3,079
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【Financial condition】
Balance Sheet (Consolidated)
・Improvement of the capital adequacy ratio by decreasing Current liabilities and Non-current liabilities.
(Millions of yen)
End of 2014

December
2015

Rate ofchange(%)

Diff.

December
2014

Current assets

116,224

103,887(12,337)(10.6)

108,881

Non-current assets

60,15759,026(1,130)(1.9)

55,60239,704

38,618(1,085)(2.7)

36,172

72,106

61,970(10,136)(14.1)

68,849

1,314

828

(486)

(37.0)

989

Non-current liabilities

19,406

15,241(4,164)(21.5)

17,131

Net assets

84,86985,701832

1.0

78,503

15,332

15,322(9)(0.1)

12,279Total net assets

176,382

162,913(13,468)(7.6)

164,484

Book-value per share (yen)1,334.65

1,346.73

12.08

0.9

1,234.65

Capital adequacy ratio (%)

48.1

52.5

4.4

－

47.7

Interest-bearing liabilities(consolidated)

6,332

5,308

(1,024)(16.2)

5,662

Investment securities
Current liabilities
Provision for loss on
construction contracts

Unrealized gains on availablefor-sale securities

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【CF】
Statements of Cash Flows (Consolidated)
・Decrease in operating activities cash flows by additional contribution to retirement benefit trust fund and corporate
income taxes paid.
・Increase in investment activities cash flows by refund of time deposits and sale of investment securities.
(Millions of yen)・Decrease in financing activities by cash dividends paid.
YearonYear

FY 2011

FY 2012FY 2013

FY 2014

December
2014

December
2015

Cash flows from operating
activities(2,697)

9,729(9,403)

(139)

(981)

(1,383)(402)

Cash flows from investing
activities(1,046)(9,481)(3,506)

3,440

226

6,620

6,393

Cash flows from financing
activities(280)(1,028)(4,152)(2,901)(3,547)(2,474)

1,072

Cash and cash equivalentat end of year

41,09740,36723,51023,667

18,93026,3707,439

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【Overall forecast】
FY 2015 Forecast (Consolidated)(Millions of yen)
Forecast
November 10,2015

Forecast
February 8,2016

First halfyear
results

Secondhalf year
Forecast

FullYearForecast

First halfyear
results

Order
received

99,20685,794

185,000

Sales

75,480104,520

Operatingincome(loss)

176

Ordinaryincome(loss)

Profitattributable toowners ofparent (loss)

Diff.

Secondhalf year
Forecast

FullYear
Forecast

First halfyear

Secondhalf yearFullYear

3Q
results

4Q
Forecast

99,20648,311

37,48385,794

185,000－－－

180,000

75,48047,02257,497

104,520

180,000

－

－

－

5,824

6,000

176

2,259

3,564

5,824

6,000－

－

－

524

5,976

6,500

524

2,554

3,421

5,976

6,500

－

－

－

255

4,145

4,400

255

1,790

2,355

4,145

4,400

－

－

－

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【Order Received forecast】
FY2015 Orders Received Forecast by Segment（Consolidated）(Millions of yen)
Forecast
November 10,2015

Segment

Forecast
February 8,2016

Diff.

HVAC and plumbing for Buildings

72,70070,700(2,000)Industrial HVAC

52,00052,000－Electrical Systems

20,00021,0001,000

Facility Systems

11,00011,000－155,700

154,700(1,000)Machinery Systems

8,000

10,0002,000

Environmental Systems

20,00019,000(1,000)28,00029,0001,000

183,700

183,700

－

1,200

1,200

－

Others

600

600

－

Adjustments

(500)

(500)

－

185,000

185,000－

Facilities Construction Business total

Plant & Machinery Systems Business total
Sub-total
Real Estate

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

18【Sale forecast】
FY2015 Sales Forecast by Segment（Consolidated）(Millions of yen)
ForecastNovember 10,2015

Segment

Forecast
February 8,2016

Diff.

HVAC and plumbing for Buildings

66,70063,700(3,000)Industrial HVAC

52,00054,0002,000

Electrical Systems

21,00022,0001,000

Facility Systems

11,00011,000－150,700

150,700－

Machinery Systems

9,000

9,000

－

Environmental Systems

19,00019,000－28,00028,000－178,700

178,700－

1,200

1,200－

Others

600

600

－

Adjustments

(500)

(500)

－

180,000

180,000－

Facilities Construction Business total

Plant & Machinery Systems Business total
Sub-total
Real EstateTotal＊Adjustments eliminate inter segment transactions included in each segment.

19

Management Direction for Fiscal 2015
Slogan of 90th anniversary「Unity-Thanks to the past 90 years and building a bridge to the 100th year」

Promote total engineering.
Enhance the profit ratio.
Revitalize Communication.
・Strengthen divisional collaboration and promote proposal – based sales.
・Reduce the work burden at worksites by establishment the site – documentation
support center and the procurement division.
・Improve profitability maintaining the quality of works.
・Raster compliance.
・Enhance corporate value by bolstering corporate governance.
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Management philosophy
We inherited mind of “Company Credos” established in 1980 to step forward to the coming one stepfor the 100th anniversary on the foundation 90th anniversary and established “ManagementPhilosophy – Sanki engineering Group” indicating the Value that the place our group aimed at , thesignificance of existence in the society and our group officer, an employee should share.

< Management Philosophy –Sanki Engineering Group >We create comfortable environment through engineering andwidely contribute to social development･To polish skill and wisdom and try to increase client’s satisfaction･To place significance on communication and respect each other･To be conscious of a member of society and act accordingly

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Thank you for your kind attention.
Remarks on Business Forecast
The descriptions contained in this material, 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 February 8,2016.
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 exposure of client companies.
 Sudden changes in material and equipment cost and labor cost.
 Stock Market fluctuations.
 Increase in retirement benefits and debts.
 Country risk.
 Accident and disaster in Facilities construction and other.

 Outbreak of the unprofitable project.
 Risk in Real Estate Business.

For inquiries please contact: Risk in Regal action.

Corporate Communications
Department

 Risk in Regal regulation.

TEL：+81-3-6367-7041

 Outbreak of the natural disaster.

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