The 1st Quarter FY2022
Summary of Financial Results
August 5, 2022

The 1st Quarter FY2022 Financial Summary☆Key Points of Financial Results
Plant & Machinery Systems Business orders declined due to a fallback from orders for large projects for Environmental
Systems in 1Q FY2021, but Facilities Construction Business orders rose YoY
Sales and profit both declined due to delayed progress on construction work
However, the balance carried forward rose YoY due to large work volumes secured by Industrial HVAC and Electrical Systems
in particular<Orders> 46.974 billion yen (56.023 billion yen in the same period of the previous fiscal year)● Orders declined overall due to a fallback from orders for large projects for Environmental Systems in 1Q FY2021● Orders for the Facilities Construction Business rose YoY due to strong orders for Industrial HVAC and Facility Systems<Net sales> 33.450 billion yen (38.737 billion yen in the same period of the previous fiscal year)● Net sales in the Facilities Construction Business rose YoY due to sales for large projects in HVAC and Plumbing forBuildings. Industrial HVAC and Electrical Systems sales declined, but the balance carried forward rose sharply YoY, andIndustrial HVAC in particular is expected to contribute to sales in FY2022● Net sales in Plant & Machinery Systems Business were flat YoY<Gross profit> Gross profit amounted to 3.948 billion yen (4.661 billion yen in the same period of the previous fiscal year)● Gross profit fell YoY due to the decline in net sales● Gross profit margin remains elevated, but fell YoY because the decline in net sales increased the ratio of construction
overhead costs
Gross profit margin is expected to improve from 2Q as sales are secured along with progress on construction<FY2022 consolidated results forecasts>● Orders received of 200 billion yen, net sales of 200 billion yen, and ordinary income of 10 billion yen (no change frominitial forecast)<Shareholder returns>● Conducted shareholder returns according to medium-term management plan “Century 2025” Phase 3 financial andcapital policies● Forecast interim dividend: 35 yen, year-end dividend: 35 yen, annual dividend: 70 yen (no change from initial forecast)● 1,500,000 shares of treasury stock to be acquired by the end of FY2022.
Plan to retire 1,500,000 shares of treasury stock on August 15, 2022
● Expected payout ratio: 56.7%, total return ratio: 92.9%

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目 次

1

The 1st Quarter FY2022 Results2

The 1st Quarter FY2022
Balance Sheet and Statement of Cash Flows3

FY2022 Forecast

4

Shareholder Returns

5

Supplementary Materials
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1THE 1ST QUARTER FY2022
RESULTS

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【Overall Results】
FY2022 1Q Results (Consolidated)(Millions of yen)June
FY2020June
FY2021June
FY2022

Year on year

Rate ofChange (%)

Orders received

47,66056,023

46,974(9,048)(16.2)

Balance carried forward

145,569

158,962

164,262

5,299

3.3

Net sales

38,25338,73733,450(5,287)(13.6)

37,654

38,12132,814(5,306)(13.9)

599

616

635

19

3.2

5,120

4,661

3,948(713)(15.3)

4,875

4,381

3,670(710)(16.2)

244

280

277(2)

(0.9)

13.4

12.0

11.8

(0.2)pt.

―

Selling, general and administrative expenses

5,274

4,940

5,209

268

5.4

Operating profit (loss)

(154)

(278)

(1,260)(982)―

Non-operating profit and loss

221

264

399

135

51.2

Ordinary profit (loss)

66

(13)

(860)

(846)

―

Extraordinary profit and loss

(82)

(1)

25

27

―

Profit attributable to owners of parent (loss)

11(35)

(637)

(602)

―

Completed construction
contracts
Real estate business and others
Gross profit
Completed construction
contracts

Real estate business and others
Gross profit margin (%)

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

FY2020

FY2021

FY2022

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

Orders received

47,66055,575

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

46,974

Net sales

38,25342,611

48,35160,851

38,73745,33251,652

57,46633,450Gross profit

5,120

5,637

7,414

10,582

4,661

6,396

8,901

10,264

3,948

Gross profit margin (%)

13.4

13.2

15.3

17.4

12.0

14.1

17.2

17.9

11.8

Selling, general andadministrative expenses

5,274

4,976

5,064

5,939

4,940

5,092

4,976

6,101

5,209

Operating profit (loss)

(154)

660

2,350

4,642(278)

1,303

3,924

4,162(1,260)

(0.4)

1.5

4.9

7.6(0.7)

2.9

7.6

7.2(3.8)

Ordinary profit (loss)

66

776

2,527

4,826(13)

1,324

4,233

4,272(860)

Extraordinary profit and loss

(82)

(243)

(40)

(33)

(1)

11(97)(215)

25

Profit attributable toowners of parent (loss)

11809

1,647

3,431(35)

899

2,820

2,805(637)

Operating profit margin (%)

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【Orders Received】
Orders Received by Segment (Consolidated)(Millions of yen)June
FY2020

Segment

June
FY2021June
FY2022

Year on year

Rate ofChange (%)

HVAC and Plumbing for
Buildings

14,235

13,88912,848(1,041)(7.5)

Industrial HVAC

18,054

11,22813,080

1,851

16.5

Electrical Systems

3,125

10,756

9,528(1,227)(11.4)

Facility Systems

2,645

2,147

3,410

1,262

58.8

38,06238,022

38,867844

2.2

Machinery Systems

2,016

3,096

2,445(650)(21.0)

Environmental Systems7,066

14,393

5,136(9,256)(64.3)

Total of Plants & Machinery
Systems Business

9,082

17,490

7,582(9,907)(56.6)

47,14455,512

46,450(9,062)(16.3)

Real Estate Business

582

595

614

18

3.1

Others

133

128

117

(10)

(8.3)

Adjustments*

(200)

(213)

(207)

5―

56,023

46,974(9,048)(16.2)

Total of Facilities Construction
Business

Sub-totalTotal＊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
47,660* “Adjustments” eliminate inter-segment transactions included in each segment.

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【Net Sales】
Net Sales by Segment (Consolidated)(Millions of yen)June
FY2020

Segment

June
FY2021June
FY2022

Year on year

Rate ofChange (%)

HVAC and Plumbing for
Buildings

10,847

10,792

11,126333

3.1

Industrial HVAC

14,288

13,956

9,730(4,226)(30.3)

Electrical Systems

5,068

5,037

3,880(1,157)(23.0)

Facility Systems

2,016

2,034

1,779(254)(12.5)

32,22031,82026,516(5,304)(16.7)

Machinery Systems

2,262

2,192

1,498(693)(31.7)

Environmental Systems

3,298

4,120

4,815

695

16.9

Total of Plants & Machinery
Systems Business

5,560

6,312

6,314

1

0.0

37,781

38,133

32,830(5,302)(13.9)

Real Estate Business

582595

614

18

3.1

Others

170

114

114

(0)

(0.5)

Adjustments*(280)

(106)

(108)

(2)

―38,737

33,450(5,287)(13.6)

Total of Facilities Construction
Business

Sub-total＊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

38,253* “Adjustments” eliminate inter-segment transactions included in each segment.

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【Profit】

Gross Profit by Segment (Consolidated)(Millions of yen)June
FY2020

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

June
FY2022

Year on year

Rate of
Change (%)

4,103

3,526

2,740(785)(22.3)

183

255

223(32)(12.7)

4,286

3,782

2,964(818)(21.6)

Machinery Systems

427

331

172(158)(47.9)

Environmental Systems

248

313

600

286

91.3

675

645

773

127

19.8

4,962

4,428

3,737(690)(15.6)

232

259

258

(0)

(0.3)

44(0)

(4)

―

(78)

(29)

(46)

(16)

―

5,120

4,661

3,948(713)(15.3)

Facility Systems

Gross Profit by segment

June
FY2021

Total of Facilities Construction
Business

Total of Plants & Machinery Systems
Business
Sub-total
Real Estate Business
OthersAdjustments*Total* “Adjustments” eliminate inter-segment transactions included in each segment.

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2
THE 1ST QUARTER FY2022
BALANCE SHEET AND STATEMENT OF CASH FLOWS

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【Financial Conditions】
Balance Sheet (Consolidated)(Millions of yen)

End ofFY2021
A

Current assets

June
FY2022B

Rate ofchange (%)

Diff.
B–A

June
FY2021

125,742

106,119(19,623)(15.6)

105,256

Cash and deposits

42,77942,465

(313)

(0.7)

39,951

Securities

5,999

5,999

―

―

2,999

Notes receivable – trade, electronically recordedmonetary claims –operating, accounts receivablefrom completed construction contracts and other,and contract assets

66,761

46,821(19,940)(29.9)

53,901

57,86657,805

(61)

(0.1)

55,44130,44730,50760

0.2

28,911

79,21062,695(16,514)(20.8)

59,545

Electronically recorded obligations - operating

2,588

2,268

(319)

(12.3)

956

Accounts payable on construction contracts

37,932

27,374(10,558)(27.8)

33,844Non-current liabilities

10,121

10,16139

0.4

11,883

Total net assets

94,27891,067(3,210)(3.4)

89,268(5,243)(5,095)147―(3,804)

Total liabilities and net assets

183,609

163,924(19,685)(10.7)

160,697

Book-value per share (yen)1,685.20

1,626.41(58.79)(3.5)

1,568.48

Equity ratio (%)

51.2

55.4

4.2pt.

―

55.4

Interest-bearing liabilities (consolidated)

9,205

8,087

(1,118)(12.1)

9,472

Non-current assets
Investment securities

Current liabilities

Treasury shares

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【CF】
Statement of Cash Flows (Consolidated)○The balance of cash and cash equivalents decreased from the end of previous fiscal year
・ The increase in cash flows from operating activities is due to progress in recovery of receivables
・ The decrease in cash flows from investment activities is due to the acquisition of property, plant and equipment andof intangible assets
・ The decrease in cash flows from financing activities is mainly due to the repayment of short- and long-termborrowings and the payment of dividends(Millions of yen)

FY2018FY2019FY2020

FY2021June
FY2022June
FY2021

Cash flows from operating
activities

6,786

11,940(483)

18,529

3,585

7,939

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

(24)

(390)

Cash flows from financing
activities(5,215)(8,955)(6,974)(7,518)(3,931)(3,724)

Cash and cash equivalents
at end of period

42,61245,94637,08744,77944,46540,95112©2022 SANKI ENGINEERING CO., LTD. All Rights Reserved.

3
FY2022FORECAST13©2021 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Overall Forecast】

FY2022 Full-Year Forecast (Consolidated)(Millions of yen)

FY2022 forecast
FY2022 forecast(Interim forecast(Initial forecast)from August 5)
A
B

Increase/Decrease
B–A

Rate ofchange(%)

FY2018FY2019FY2020

FY2021

Orders received

217,096

194,018

195,580

202,250

200,000

200,000――

Balance carried forward

149,495

136,163

141,676

150,737

150,737

150,737――

Net sales

212,314207,684

190,067

193,189

200,000

200,000――

Gross profit

31,684

32,11028,75430,22331,50031,500―

―

14.9

15.5

15.1

15.6

15.8

15.8

―

―

Operating profit

10,637

10,674

7,498

9,112

9,500

9,500――

Ordinary profit

11,204

11,224

8,196

9,817

10,00010,000――

Profit attributable toowners of parent

9,046

7,576

5,901

6,489

6,900

6,900――

Gross profit margin (%)

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【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

58,00057,000Industrial HVAC

70,00065,000Electrical Systems

26,00027,000

Facility Systems

11,00011,000165,000

160,000

Machinery Systems

13,00012,000

Environmental Systems

20,00026,00033,00038,000198,000

198,000

2,400

2,400

Others500

500

Adjustments*(900)(900)

200,000

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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4SHAREHOLDER
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)・ 1,500,000 shares of treasury stock to be acquired by the end of FY2022.
Plan to retire 1,500,000 shares of treasury stock on August 15, 2022
・ Expected payout ratio: 56.7%, total return ratio: 92.9%

FY2018
Earnings per share (yen)FY2019FY2020

FY2021(Forecast)

FY2021150.02128.51103.12115.13123.41

Cash dividends per share:
regular dividends (yen)

4070

70

70

70

Cash dividends per share:
extra dividends (yen)

20

25

1015

―

Cash dividends per share (yen)

60

95

80

85

70

Payout ratio (consolidated) (%)

40.0

73.9

77.6

73.8

56.7

Total return ratio (%)

52.9

111.4

97.3

95.7

92.9

Number of shareholders at end of FY3,381

4,216

14,861

14,524―

Share price at end of FY (yen)

1,210

1,211

1,453

1,398

―

Acquisition of treasury shares(thousand shares)

1,000

1,958

1,000

1,000

1,500

Retirement of treasury shares(thousand shares)

1,000

2,000

1,000

―

1,500

17©2022 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Shareholder Returns】

Phase2Phase1

Phase3(Millions of yen)
10,000160.0%

Value of treasury shares acquired(left axis)
Amount of dividends (left axis)

148.9%

140.0%

Total return ratio (right axis)
Payout ratio (right axis)

2,899

8,000

120.0%
111.4%
95.7%

97.3%

100.0%

6,000

92.9%
1,171

3,679

1,191

4,000

73.9%

77.6%

1,438

2,000

55.5%

60.0%
56.7%

4,568

2,136

2016

2017

40.0%

4,773
3,863

3,595

1,906

←50% Payout ratio

5,543
40.0%

40.6%

80.0%

73.8%

52.9%
40.6%

2,550

20.0%

00.0%
2018

2019

2020

2021

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

5SUPPLEMENTARYMATERIALS

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

FY2020Full-year

FY2021
Full-year

June
FY2021AJune
FY2022
B

147,191

149,278

151,747

35,93836,829891

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

48,23863,54462,29913,105

11,236(1,868)Rate of orders received from generalcontractors (Non-consolidated: Facilities
Construction Business) (%)

32.8

42.6

41.1

36.5

30.5

(6.0)

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

56,023

46,974(9,048)

3,143

2,789

4,283

989

787(201)

1.6

1.4

2.1

1.8

1.7(0.1)
pt.

Orders received for renewal construction(Consolidated)

112,909109,585

108,561

22,891

31,471

8,580

Rate of orders received for renewal
construction (Consolidated) (%)

58.2

56.0

53.7

40.9

67.0

26.1

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

114,208

101,147107,855

20,297

18,903(1,394)

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

June FY2020
June FY2021
June FY2022

Government Offices

Miscellaneous businessservices

Wholesale and Retail Trade

Education

Medical Services

Real Estate

Finance and Insurance

ChemicalMachinery

Food

Pharmaceutical Industry

Automobile

Electrical Machinery

18,00016,00014,00012,00010,000
8,000
6,000
4,000
2,000
021
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【Orders Received / Net Sales】
Main Large-Scale Projects Received andLarge-Scale Completed Construction Projects〇Main Large-Scale Projects Received
Three projects (Property names undisclosed)〇Main Large-Scale Completed Construction Projects
Three projects
Property nameItem of construction

Type ofconstruction

Location

Nidec Corporation Mukomachi Project C Building Construction and OtherWorks

HVAC and plumbing systems

New
construction
work

Kyoto

Plumbing systems

New
construction
work

Hyogo

Waste treatment facilityNew
construction
work

ShimaneKawanishi City General Medical Center

Oochi Clean Center New Combustible Waste Joint Treatment FacilityConstruction 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)
June FY2020

June FY2021

June FY2022

Office1――

Factory

1―

1

Research institute

1――

Other building
interiors―

1

14 Projects

3 Projects

4 Projects

Water treatment
plants and sewage
plants1Hospital―

School building andauditoriums

―

―

1

Water treatment
plants and sewage
plants―1―(7,917 million yen)

1* Orders received from
customers: 2 projects* Orders received fromgeneral contractors:
2 projects(15,651 million yen)―

* Orders received from
customers: 3 projects

1* Orders received fromgeneral contractors:
1 project(5,792 million yen)
* Orders received from
customers: 1 project―* Orders received fromgeneral contractors:
2 projects

23©2022 SANKI ENGINEERING CO., LTD. All Rights Reserved.

【Operating Results】
Century 2025 Results (Consolidated)<Orders Received and Net Sales>
Phase1(Millions of yen)Phase2Phase3200,000

Orders received150,000Net sales

Balance carriedforward100,000

50,00002016

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

営業利益率（右軸）
Operating profit margin (right axis)
経常利益率（右軸）
Ordinary profit margin (right axis)

20,000

10.0

16,0008.0

12,000

6.0

8,000

4.0

4,000

2.00

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 August 5. 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：+81-03-6367-7041

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