︱

Growth Strategies and Sustainability Management ︱We strive to realize a sustainable society through businesses
that are kind to people and the environment.

Net Sales
Composition Ratio

Eiji Mitsuishi

82%

Director, Senior Executive Officer and General Manager of the Mechanical &Electrical Contracting Headquarters

Orders
Received(Billions of Yen)

182.5
Net Sales for
Fiscal 2022

(Billions of Yen)billion yen

194.8
157.6 156.7 160.5

Net Sales

155.7

billion yen

179.3
153.0

171.5

155.5 155.4 155.7

170.0

155.7
billion yen*Includes the results of the FacilitySystems Business.

20182019 2020 2021 2022 2023 (FY)Forecast

20182019 2020 2021 2022 2023 (FY)Forecast

Facilities Construction Business• Increased demand for environmentally sound facilities for realizing a decarbonized society• E xpanded investments in manufacturing facilities for semiconductors, batteries, and otherproducts, and in data centers• E xpanded demand for building renewal arising from urban redevelopment• Increase in materials and labor costs, and delayed delivery of materials and equipment• S taff shortages, including at subcontractors, in the face of increasingly large-scale properties

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

Key Initiatives for Strengthening the Business Foundation
Key Initiative 1

Improve construction quality

Strengthen the Company-wide division of labor system for construction work and enhanceconstruction quality by promoting occupational health and safety in unison with the Health and
Safety Cooperative Association.
Key Initiative 2

Improve productivity

Reduce the workload of site managers and improve operational efficiency by promoting the Smile
Site Plan and DX in construction management, pass down technical skills, and increase productivity
through human resource development.
Key Initiative 3

Boost competitive strength

Boost competitive strength by using the Sales Force Automation systems and information sharing
to clarify and more accurately respond to customer needs, implement thorough cost and delivery
time management through the collection of procurement data for materials and equipment, anddevelop technologies in collaboration with the R&D Center.

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

FY2025 Targets

FY2022 Results

Evaluation

Number of serious accidents

00◎

Incidents resulting in suspending
production00◎

Major Results for Fiscal 2022 Value of orders received increased due to large construction
projects and secured ample carryover to the next fiscal year.
Net sales remained flat year-on-year due to postponed plans
and construction schedule delays. Profit decreased due tocarried over sales, soaring prices of materials and equipment,
and rising labor costs.
⃝ 
While reinforcing the exchange of information on delivery
dates and cost of materials and equipment, we also promptly
placed orders related to projects received to minimize the riskof price fluctuations for materials and equipment.
⃝ 
We focused on reducing problems and complaints within
five years after the completion of construction. We also
improved design accuracy by conducting design reviews
and checking other companies’ blueprints, and avoided
passing on problems to the construction site by undertaking
relevant activities during review meetings held at the start ofconstruction. In addition, we conducted true cause analysis ofproblems to prevent recurrence.
⃝ 
We strengthened Company-wide collaboration and an onsite
support system as part of activities for promoting the Smile
Site Plan*. Sales representatives developed risk reviews forrelevant sections on construction conditions, personnelaspects, and construction schedules. We also boosted
productivity by promoting the use of ICT at both construction
sites and support departments, and operated the sales
support system to share information.
⃝ 
We actively offered proposals to customers on the use ofenergy-saving technologies as part of our effort to promote
the SANKI YOU Eco Contribution Point system, which
contributes to reducing customer CO2 emissions, and 249
proposals were adopted by customers.
⃝Major Projects
Nidec Corporation Mukomachi Project Building C (HVAC andplumbing systems/new construction work)
Nippon Life Yodoyabashi Building (HVAC, plumbing, and electricalsystems/new construction work)
Toyota Technical Center Shimoyama (plumbing and electricalsystems/new construction work)
Otemachi Nomura Building (HVAC/renovation work)
Yamagata Prefectural Shinjo Hospital (HVAC/new construction work)
SUMCO TECHXIV Nagasaki Plant No. 6 Building (HVAC, plumbing,and electrical systems/extension work)

Facilities Construction Business

Opportunities andRisks in the Business
Environment

Growth Strategies and Sustainability Management

In the Facilities Construction Business, we provide comfortable environments forbuildings, factories, public facilities, and other structures through total engineering thatcombines diverse component technologies. We conduct business by always listening
to society and continuously refining our technologies, firmly committed to conserving
energy and resources, and achieving our goals for decarbonization. Meanwhile, in thepursuit of happiness for colleagues, which includes our subcontractors, we will first takeon the pressing task of adapting to Japan’s revised Labor Standards Act, rebuild a robust
business foundation by implementing DX, and engage in other initiatives to change ourwork system toward the ultimate goal of realizing a sustainable society.

194.8

Nippon Life Yodoyabashi Building*T he Sanki Engineering Group’s own work style reform measurestargeting construction sites.

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SANKI REPORT 2023

SANKI REPORT 2023

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︱Growth Strategies and Sustainability Management ︱Facilities Construction Business

Status of Business Operations and Future Outlook toward Achieving Phase 3
Accelerate Work Style Reforms by Promoting the Smile
Site Plan
To prepare for the enactment of Japan’s revised LaborStandards Act in April 2024, we will promote the Smile Site
Plan to simultaneously improve onsite capabilities and quality
and reduce the workload of construction managers throughactive use of ICT tools and digital transformation. Since wehave a particularly large number of ongoing construction
projects in fiscal 2023, we will maintain a close exchange of
information to ensure effective collaboration between theheadquarters organization, branches and branch offices,and construction sites, and will regularly check the status ofeach. Partnerships with subcontractors will be strengthened
to cooperatively accelerate work style reforms, and we willgrasp the respective working conditions and workload statusof each site manager while appropriately adjusting onsite
staffing as needed.

Focus

Handling Large-Scale Urban Redevelopment
Projects and Growth Areas Such as Semiconductor
Manufacturing Facilities
As the scale of urban redevelopment projects andmanufacturing facilities for semiconductors, batteries,pharmaceuticals, and other products continues to grow,more projects will require a Company-wide response basedon the collaborative efforts of sales, design, and engineering.
For projects involving the entire Company, we share
information within the associated business division, adjust
personnel planning with due consideration for construction
areas and periods, establish construction systems, andprovide backup for construction work and procurement

Strengthening the Promotion of DX across Divisions
We are bolstering our digital infrastructure by taking into
account ongoing operational improvements and newsystems of work. We will further strengthen DX promotion
across divisions, from raising the efficiency of sales activities
and administrative operations in the field to increasing
productivity by improving the efficiency of construction
work. At our existing construction sites, we are converting
design and construction drawings into 3D drawings using
the BIM software Rebro and promoting the use of pointcloud 3D scanning. Furthermore, we will develop digital tools
and robot-related technologies to secure construction quality
and save labor in site management by creating a databaseof drawings produced to date for advanced BIM operations
such as digital twinning.
Promoting Project Proposals that Contribute to Carbon
Neutrality and Technological Development
In addition to presenting customers with renovation andoperation proposals for energy conservation, we will also
work on new areas such as hydrogen energy. At the sametime, we will advance the development of new technologies
that meet society’s needs for energy conservation and energy
creation, thereby strengthening our ability to make proposals.

Installing Optimal HVAC Facilities for the Respective Roles of Each Area

Renovation and Upgrading Work for
the Yamagata Prefectural Shinjo Hospital
As a member of a consortium handling HVAC facilities
work, Sanki Engineering was in charge of construction for arenovation and upgrading project at the Yamagata PrefecturalShinjo Hospital, the only designated core hospital in theMogami region of Yamagata Prefecture. We installed variousequipment for removing the heat load, adjusting roompressure, and securing cleanliness in accordance with theroles and characteristics of each area and room in the hospital.
For dialysis rooms in particular, where patients stay for long
periods of time, we introduced our proprietary MEDIFORT® airconditioning system that controls airflow to provide comfort
to patients lying on beds by preventing drafty conditions.
Furthermore, in operating rooms, intensive care units, andsterile rooms, we constructed a system that circulates fresh air

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to ensure an appropriate response for each property. In
growth areas where we expect continued investment, weview our active participation in projects as an opportunity toincorporate cutting-edge technologies and expertise, which
will lead to gaining more stock projects in the future.

SANKI REPORT 2023

and room air through high-performance dust removal filters
to maintain a high level of cleanliness. We will continue
to play our part in constructing safe and secure medical
facilities by integrating Sanki’s diverse facilities technologies.

Yamagata Prefectural Shinjo Hospital