Status of Business Progress in
the Medium-Term Management Plan“Century 2025” Phase3 FY2022
May 12, 2023

Phase 3 Basic Policies
The Phase 3 medium-term management plan will put the finishing touches on our “Century 2025”
long-term vision. During this phase we will realize our ambition of becoming the company of choicethrough the maturation and evolution of measures taken up till now aimed at improving quality andreliability, and the addition of three new measures, namely: contribute to the sustainability ofsociety, accelerate work style reforms, and invest toward the next era.

Phase 1Enhance Quality

Phase 2
Enhance Reliability

Strengthen CoreBusinesses
Improve component technologies
and achieve stable growth

Promote Growth Strategies
Pursue future growth in the areasof technology and business

Enhance the Sanki Brand
Develop human resources thatpossess the Sanki spirit andsocial contribution

Further pursue quality
・Improve construction
productivity
・Meet to energy saving andlabor reduction needs
・Promote technological R&D
・Continue to receive orders forstock projects
・Create better work conditions
・Improve internalcommunication

Disclose financial & capital policies

FY2022–FY2025
2022～2025年度

Phase 3Phase3
Company of Choice「選ばれる」
Maturity and Evolution of Measures toEnhance Quality and Reliability

FY2019–FY2021

Refining Technical Skills andHuman Resources to Enhance Quality

FY2016–FY2018

Strengthen information dissemination capabilities

Contribute to thesustainability of society
Accelerate work stylereforms
Invest toward the nextera

Long-Term Vision“Century 2025”
Becoming even more the
ステークホルダーから
company of choice for
もっと「選ばれる」会社
stakeholdersの実現

Note: The ESG policy in Phase 2 has evolved into the Sustainability policy in Phase 32©2023 SANKI ENGINEERING CO., LTD. All Rights Reserved.

Phase 3 Targets and First-Year Results
Phase 3 targets
By FY2025

FY2022
Results

Difference

Net Sales¥220.0bn¥190.8bn¥(29.2)bn

Gross profit[ratio]¥36.0bn[16.5%]¥27.0bn[14.2%]¥(9.0)bn[(2.3)pt]

Ordinary profit[margin]¥12.0bn[5.5%]¥6.2bn
[3.3%]¥(5.8)bn[(2.2)pt]

Phase 3 targets
FY2022 - FY2025

FY2022
Results

Ordinary profit
margin

5.0% or more

3.3%

Dividend policy

Dividend payout ratio 50% or more
Annual dividend per share of ¥70 or more

Dividend payout ratio 87.4%
Annual dividend per share of ¥75

Acquisition oftreasury stock

About 5 million shares*

1.5 million shares(Cumulative total of 1.5 million shares
during period of plan)

ROE

8.0% or more

5.1%

About ¥20bn*¥3.2bn(Cumulative total of ¥3.2bn during periodof plan)

Growthinvestment*Cumulative during period of plan

3©2023 SANKI ENGINEERING CO., LTD. All Rights Reserved.

Orders Received/Net Sales

2,285
1,9084©2023 SANKI ENGINEERING CO., LTD. All Rights Reserved.

Gross Profit/Gross Profit Margin27014.25©2023 SANKI ENGINEERING CO., LTD. All Rights Reserved.

Status of Measures◆Topics in each business● Facilities Construction Business
Received many orders for large-scale urban redevelopment projects andlife-cycle engineering* projects to build a legacy for the future insemiconductor- and automotive-related fields*Sanki’s concept to target the entire life cycle of buildings● Facility Systems Business
Developing new services aimed at expanding capacity in collaboration
with a startup company● Machinery Systems Business
Developed and launched new products targeting the logistics market
Reverse sorter®
Space-saving
high-speed
sorting device®

Meris Bianca®
Transport robot● Environmental Systems Business
The AEROWING aeration system for water treatment facilities iswell received worldwide

6©2023 SANKI ENGINEERING CO., LTD. All Rights Reserved.

Status of Measures◆Technological Development● Delivered an “AI waste crane system” to CleanHill Tenzan—Achieving more efficient and stable operational management through theautomation of waste crane operation—● Participated in the Ministry of the Environment FY2022 Decarbonized
Resource Recycling Business Demonstration Project Utilizing DigitalTechnology● Received orders for energy-saving aeration systems for a large-scale water
treatment facility in Australia—Also contributing to the efficient conservation of ocean marine
environments—● Selected for the Ministry of Land, Infrastructure, Transport and Tourism
FY2022 Breakthrough by Dynamic Approach in Sewage High Technology
Project FS*—Technology for the low-cost conversion to fertilizer of ash from theincineration of sewage sludge—*Feasibility study

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Status of Measures◆Sustainability
Environment● Strengthened the SANKI YOU Eco Contribution PointSystem—Signed an agreement to create forests with theWakayama and Shiga prefectural governments—● Signed a contract for the business of supplying electricity
sourced from renewable energy (solar power) for theSanki Techno Center and Yamato Product Center● Certified by CDP as an A List company with outstanding
initiatives and information disclosure on climate change● Continued to support environmental conservation inAntarctica● Joined the Ministry of the Environment 30by30 Alliance forBiodiversity

8©2023 SANKI ENGINEERING CO., LTD. All Rights Reserved.

Status of Measures
Society andPeople● Continued to support the Earthquake Recovery Project● Established and disclosed the Sanki Engineering Group
Human Rights Policy● Introduced a new personnel system, extending theretirement age to 65, actively promoting young
employees, and raising starting salaries● Launch of the new Career Return ProgramGovernance● Transfer to the Tokyo Stock Exchange Prime Market● Reviewed the officers’ compensation system andintroduced restricted stock compensation● Promoted diversity on the Board of Directors and theelection of Sanki Engineering’s first female Director
9©2023 SANKI ENGINEERING CO., LTD. All Rights Reserved.

Status of Measures◆Invest toward the Next Era● Engaged in M&A to promote BIM● Decided on the construction of a cleanroom inside the Yamato Product Center
to develop cleanroom products● Positioned human capital investment, ICT investment, and R&D investment asinvestment toward the future● Made capital investments for decarbonization based on Sanki's carbon-neutral
declaration
These represented a total investment of ¥3.2bn out of the total 4-year
investment budget of ¥20.0bn.
● Launched the Earth MIRAI Project to explore new technologies
Called for applications from employees during the second half of FY2022, with122 employees applying

10©2023 SANKI ENGINEERING CO., LTD. All Rights Reserved.

Status of Measures◆Other Topics● Renewal of company uniforms and the creation of comfortable workingenvironments● Also aiming to boost recruitment activities through Sanki’s first ever buswrap advertisement

11©2023 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 May 12. 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

12©2023 SANKI ENGINEERING CO., LTD. All Rights Reserved.