Status of Business Progress in
the Medium-Term Management Plan“Century 2025” Phase3 FY2022 2nd Quarter
November 11, 2022

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 1
Enhance Quality

Phase 2
Enhance Reliability

Strengthen Core
Businesses
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 3
Phase3Company 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©2022 SANKI ENGINEERING CO., LTD. All Rights Reserved.

Phase 3 Financial Performance Targets
PlanResult(Billions of yen)Phase1FY20162017

2018

Net Sales

1,685

Gross profit(margin)

225

250（13.4%）（14.7%）

Ordinary profit（margin）

Phase2

1,701

2019

2,123

Phase3

2020

2021

2022

1,931

2,000

2025

2,076

1,900

2,200

316

321

287

302

315

360

（14.9%）（15.5%）（15.1%）（15.6%）（15.8%）（16.5%）

68

74

112

112

81

98

100

120

(4.1%)（4.4%)（5.3%）（5.4%）（4.3%）（5.1%）（5.0%）（5.5%）

Phase 3 Management targets
Ordinary profit
margin

5.0% or more

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

Acquisition oftreasury stock

About 5 million shares*

ROE

8.0 % or more

Growthinvestment

About ¥20bn**Cumulative during period of plan

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KPIs for Phase3

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Orders Received/Net Sales
Consolidated Net Sales

Consolidated Orders Received(Millions of yen)

(Millions of yen)

250,000

Phase1
2nd Quarter

Phase2Phase3250,000

Full year

Phase2Phase1
2nd Quarter(Forecast)Phase3

Full year(Forecast)

200,000

200,000

150,000

150,000

100,000

100,000

50,00050,0000FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY20220
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

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Gross Profit/Gross Profit Margin
Consolidated Gross Profit(Millions of yen)

40,00035,000Phase1

Phase2

Consolidated Gross Profit Margin
Phase318.0%

2nd Quarter

Full year(Forecast)

30,000Phase2Phase1

2nd Quarter

17.0%

Phase3Full year

16.0%

25,00015.0%

20,00014.0%

15,00013.0%

10,000

12.0%

5,000

11.0%

10.0%0FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

FY2016FY2017FY2018FY2019FY2020

FY2021

FY20226©2022 SANKI ENGINEERING CO., LTD. All Rights Reserved.

Status of Measures◆Technological Development● Delivering an “AI waste crane system” to CleanHill Tenzan
Our newly developed AI waste cleaning system uses images from a stereo camera to compartmentalize waste stored in thewaste pit and identifies the type and height of waste using image recognition AI and status assessment AI, respectively, in realtime. This system determines and indicates how the crane should operate, based on information including waste input demand
and the opening status of the input door. The image recognition AI was jointly developed together with the National Institute ofAdvanced Industrial Science and Technology (AIST).
The installation of this system achieves a substantial reduction in employee workload of approximately 60% compared to themanual nighttime crane operation. It enables efficient and stable operational management.

Conceptual image of the AI waste-cleaning system

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Status of Measures◆Sustainability● Information disclosure based on the TCFDrecommendations● FY2022 summer special joint health and safety patrol● Disclosure of the Sanki Engineering Group Human
Rights Policy● Shrub-trimming events for Sanki Forest and Kansha-no-Morienvironmental protection initiatives
At Sanki Forest, a forest where we carry out tree-planting and tree-growing activities, establishedto mark the 90th anniversary of Sanki Engineering in 2015, and Kansha-no-Mori, a forest
established to commemorate the 10th anniversary of the SANKI YOU Eco Contribution Point
System in 2020, we engage in tree-planting and conservation in cooperation with the certified
NPO Environmental Relations (chaired by Atsuko Suzuki).

● Launch of the new Career Return Program
Establishing a personnel system that will enable us to be a “Company of Choice” is one of the key themes of our medium-term
management plan “Century 2025” Phase 3. We have already implemented initiatives such as extending the retirement age to 65,
strengthening line management for managerial positions, and revising starting salaries and allowances.
Recently, we have reviewed the Return to Work Program aimed at creating environments where more diverse talent can play anactive role and enabling more flexible career development for employees. In the past, eligible retirement was limited to reasons suchas childbirth, childcare, nursing duties, and job relocation by a spouse. Under the Career Return Program, these restrictions weresignificantly relaxed to include other reasons such as personal circumstances.

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Status of Measures◆Governance● Transfer to the Tokyo Stock Exchange Prime Market● Review of the officers’ compensation system and the introduction of restricted stockcompensation● Promotion of diversity on the Board of Directors and the election of Sanki Engineering’s
first female Director◆Other Topics● Introduction of a new personnel system, extending the retirement age to 65, actively
promoting young employees, and raising starting salaries● Renewal of company uniforms and the creation of
comfortable working environments
We received a variety of opinions and requests regarding the company uniform, including aspects
such as the material and the position and size of the pockets. We established a study projectteam, which acted on employee feedback to formulate several highly functional and safe designs.
We decided on the new uniform based on the careful, broad-based aggregation of employeeneeds.

● Exhibited new products from the Machinery Systems Business at Logis-Tech
Tokyo 2022
Reverse SorterTM
Space-saving highspeed sorting device

Meris BiancaTM
Transport robot

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【Reference】Vision for 2050

Vision for2050
Sanki,“The Enduring Companyof Choice”
Striving to be a company that contributes to therealization of a sustainable world by using

engineering to solve social issues such ascarbon neutrality and create a pleasantenvironment- Promote sustainability management- Formulate sustainability policies- Determine materialities (key issues)

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【Reference】Sustainability Policies

Aiming to realize a strong business base and a sustainable society by “creating comfortableenvironments through engineering and widely contributing to social development”

Sanki’s Carbon-Neutral Declaration
The Sanki Engineering Group is making serious efforts to address theclimate change crisis facing the world and aims to achieve carbon
neutrality for the Group’s own GHG emissions (Scope 1 and 2) by 2030 andfor GHG emissions including the supply chain (Scope 1, 2, and 3) by 2050.

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【Reference】Sanki Engineering Group Materialities (Key Issues)

Use engineering to build a comfortable environment● Build strong social infrastructure● Diversify water treatment businessContribute to a carbon-freesociety● Promote decarbonization● Promote renewable energy
power generation business● Expand decarbonizationrelated market

Contribute to acarbon-freesociety
Use engineering
to build acomfortableenvironment

Stable earningsand stronger
business basePursuit ofhappiness forcolleagues

Create newsocial value

Pursuit of happiness forcolleagues● Improve human resource
development and technology● Promote work style reforms● Respect human rights● Promote diversity

Create new social value● Promote activities that
contribute to society● Expand automation andlabor-saving market● Expand consulting services

Improve corporate value
Stable earnings and stronger business base
● Strengthen governance system● Thorough compliance● Promote occupational safety and health● Improve quality ● Increase productivity● Promote DX● Secure stable long-term business● Returns to stakeholders

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Statements about the future, such as results forecasts included in these materials, are based on judgments made according tothe 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

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