August 9, 2024

Consolidated Financial Results
for the Three Months Ended June 30, 2024
<Japanese GAAP>
Listed company:
SANKI ENGINEERING CO., LTD.
Listed stock exchange: Tokyo
Securities code:
1961
URL:
https://www.sanki.co.jp/
Representative:
Hirokazu Ishida, President and Representative Director
Contact:
Yoshio Kawabe, Director, Managing Executive Officer, General Manager of the Accounting
Division
TEL: +81-3-6367-7084
Scheduled date to commence dividend payments: Preparation of explanatory materials for financial results: Yes
Holding of a briefing on financial results: None
(Amounts of less than 1 million yen are truncated)

1. Consolidated Financial Results for the Three Months Ended June 30, 2024
(April 1, 2024 to June 30, 2024)(1) Consolidated operating results (Cumulative)(% figures show year-on-year change)
Net sales
Three months ended

Operating profit

Millions of yen% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen%

June 30, 2024

48,527

19.2

1,540

－

2,087

481.4

1,345

296.9

June 30, 2023

40,727

21.8

(18)

－

359

－

339

－

(Note) Comprehensive income:Three months ended June 30, 2024: ¥(852 million) [－%]
Three months ended June 30, 2023: ¥2,698 million [－%]
Profit per
share – diluted

Profit per share
Three months ended

Yen

Yen

June 30, 2024

25.34

25.26

June 30, 2023

6.23

6.21

(2) Consolidated financial position
Total assets
As of

Net assets

Shareholders’ equity ratio

Millions of yen

Millions of yen%

June 30, 2024

183,310

101,114

55.1

March 31, 2024

202,161

104,621

51.7(Reference) Shareholders’ equity: As of June 30, 2024: ¥100,948 million

1

As of March 31, 2024: ¥104,431 million

2. Dividends
Annual dividends
First quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2024



35.00



50.00

85.00

Fiscal year ending March 31, 2025


42.50



42.50

85.00

Fiscal year ending March 31, 2025
(Forecast)

Total(Note) Amendment to forecasts of dividends recently announced: None
Breakdown of end-FY3/24 dividend: Ordinary dividend ¥35; Extraordinary dividend ¥15
3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2025
(April 1, 2024 to March 31, 2025)(% figures show year-on-year change for the full year)
Net sales
Millions of yen
Full year

225,000

Operating profit% Millions of yen
1.4

12,500

Profit attributable toowners of parent

Ordinary profit% Millions of yen
7.9

13,000% Millions of yen
2.0(Note) Amendment to forecasts of consolidated financial results recently announced: None

2

8,800

Profitper share
%

Yen

(1.7)

165.54

* Notes(1) Significant changes in the scope of consolidation during the three months ended June 30, 2024: None
(2) Application of specific accounting for preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies and estimates, and retrospective restatements(i) Changes in accounting policies in accordance with revision of accounting standards: None(ii) Changes in accounting policies other than item (i) above: None(iii) Changes in accounting estimates: None(iv) Retrospective restatements: None
(4) Number of shares issued (common stock)(i) Number of shares outstanding at the end of the period (including treasury shares)
As of June 30, 2024

56,661,156 shares

As of March 31, 2024

56,661,156 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2024

3,548,433 shares

As of March 31, 2024

3,570,395 shares(iii) Average number of shares during period
For the three months ended June 30, 2024

53,104,733 shares

For the three months ended June 30, 2023

54,443,198 shares* Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public
accountants or an audit firm: None
* Proper use of earnings forecasts, and other special matters
There are no changes to our consolidated and non-consolidated earnings forecasts announced on May 10, 2024.
The forward-looking statements such as earnings forecasts contained in these materials are based on the information
available at the time they were prepared, and the actual results could differ from forecasts depending on a variety offactors.
Disclaimer: This is a Japanese-English translation of the summary of financial statements of the Company produced foryour convenience. Officially, only the Japanese version is assumed to be the summary of financial statements of theCompany. This summary does not constitute any guarantee and the Company will not compensate any losses and/or damage
stemming from actions taken based on these statements. In the case that there is any discrepancy between the Japanese andEnglish versions, the Japanese version is assumed to be correct.

3

[Attached Materials]
Index
1. Qualitative Information on the Quarter under Review ........................................................................................................... 2(1) Qualitative information on consolidated operating results ................................................................................................ 2(2) Qualitative information on consolidated financial position ............................................................................................... 3(3) Qualitative information on consolidated earnings forecasts .............................................................................................. 4
2. Consolidated Financial Statements and Related Notes........................................................................................................... 5(1) Quarterly consolidated balance sheets ............................................................................................................................... 5(2) Quarterly consolidated statements of income and comprehensive income........................................................................ 7(3) Quarterly consolidated statements of cash flows............................................................................................................... 8(4) Notes on premise of going concern ................................................................................................................................... 9(5) Segment information, etc................................................................................................................................................... 9(6) Notes regarding significant changes in shareholders’ equity [if any] ................................................................................ 9

1

1. Qualitative Information on the Quarter under Review
As it prepares for its 100th anniversary in April 2025, the Group aims to be the “Company of Choice” for even more stakeholders
by further enhancing quality and reliability through our long-term vision “Century 2025.” The consolidated fiscal year under review
is the third year of the four-year medium-term management plan “Century 2025” Phase 3, which is the final phase of the long-term
vision “Century 2025.” Continuing its efforts from FY2023, the Group will strive to remain the enduring company of choice bypushing forward with Phase 1 initiatives focused on improving quality and Phase 2 efforts to enhance reliability, while also
implementing new measures, including initiatives to contribute to the sustainability of society, accelerate work-style reforms, andinvest toward the next generation. In addition, we will continue building a corporate structure that can flexibly respond to changes
in the environment, while developing new technologies, strengthening corporate governance, and achieving sustainable growth andincreased corporate value over the medium to long term based on thorough compliance.
The Group’s financial position and operating results for the three months ended June 30, 2024, are as follows.

(1) Qualitative information on consolidated operating results
Q1 FY2023

Q1 FY2024

YoY change

Orders received

52,63170,732

18,100

Balance carried forward

200,330

221,106

20,776

Net sales

40,727

48,5277,800

Gross profit

5,231

7,178

1,946

12.8%

14.8%

2.0%

Margin (%)
Operating profit (loss)
Margin (%)
Ordinary profit
Margin (%)
Profit attributable to ownersof parent
Margin (%)

(18)

1,540

1,559

(0.0%)

3.2%

3.2%

359

2,087

1,728

0.9%

4.3%

3.4%

339

1,345

1,006

0.8%

2.8%

2.0%

(Millions of yen)
Main factors behind YoYYoY change (%)
changeAsstatedinthe next
34.4%
section, “Operating
10.4% results of major
segments”
19.2%
37.2%
―
481.4%

296.9%(Note) Profit or loss margins are the rate of return on net sales.
<Operating results of major segments>〇Facilities Construction BusinessThis business includes HVAC and Plumbing for Buildings, Industrial HVAC (centered on air-conditioning systems for factories),
Electrical Systems and Facility Systems businesses, etc.
Orders received increased on the back largely of orders received for large-scale projects in HVAC and Plumbing for Buildings,
Industrial HVAC, and Electrical Systems. Net sales and segment profit both increased due largely to progress in the projects thatwere carried forward from the previous fiscal year and improvement in profitability.

Orders received
Net sales
Segment profit

Q1 FY2023
38,98334,098360

Q1 FY2024
56,86140,1391,925

2

YoY change
17,877
6,041
1,565(Millions of yen)
YoY change (%)
45.9%
17.7%
434.5%

〇Machinery Systems BusinessThis business mainly includes conveyance systems and manufacturing and sales business related to transportation equipment.
Orders received decreased partly as a reaction to the previous fiscal year’s order received for large-scale conveyance equipment.
Net sales increased due largely to progress in the projects that were carried forward from the previous fiscal year but segment
loss deteriorated.
Q1 FY2023
3,508
1,788
(297)

Orders received
Net sales
Segment profit (loss)

Q1 FY2024
2,496
2,395
(319)

YoY change(1,012)
606(21)(Millions of yen)
YoY change (%)(28.8%)
33.9%－〇Environmental Systems BusinessThis business mainly includes operations related to water and sewage facilities and waste treatment facilities ordered bygovernment agencies.
Orders received increased due largely to order received for design and construction of a digestion gas power generation facility
at a large-scale water supply and sewerage center. Net sales increased and segment loss improved.
Q1 FY2023
9,572
4,226
(224)

Orders received
Net sales
Segment profit (loss)

Q1 FY2024
11,126
5,413(119)

YoY change
1,554
1,187
105

(Millions of yen)
YoY change (%)
16.2%
28.1%
－

〇Real Estate BusinessThis business mainly includes leasing operations for real estate holdings and building management.
Net sales and segment profit both increased with an increase in tenant rental income.
Q1 FY2023
618
618
243

Orders received
Net sales
Segment profit

Q1 FY2024
639
639
271

YoY change
20
20
28

(Millions of yen)
YoY change (%)
3.3%
3.3%
11.7%

(2) Qualitative information on consolidated financial position(Status of assets, liabilities and net assets)(Millions of yen)
End-FY2023
Current
assetsNon-current
assetsTotal assets
Current
liabilities
Non-current
liabilities
Total
liabilities
Total net
assetsEnd-Q1 FY2024

YoY change
YoY change(%)

Main factors behind YoY change

Accounts receivable from completed
construction contracts and other andcontract assets decreased from the end(5.1%)of FY2023 due to seasonal factors.

131,564

116,330(15,233)

70,596

66,979(3,617)202,161

183,310(18,850)(9.3%)

81,59766,603(14,994)(18.4%)

15,941

15,592(349)(2.2%)

97,53982,196(15,343)(15.7%)(3,506)

Retained earnings decreased due topayment of dividends, while valuation(3.4%) difference on available-for salesecurities decreased due to a decline inmarket value.

104,621

101,1143(11.6%)

Accounts payable for construction
contracts decreased from the end of
FY2023 due to seasonal factors.

(Cash flow status)(Millions of yen)
Q1 FY2023

Q1 FY2024

24,94923,500Cash flows from operating activities

5,599

13,910Cash flows from investing activities

6

207

Cash flows from financing activities(3,278)(3,554)

Cash and cash equivalents at
beginning of period

Effect of exchange rate changes oncash and cash equivalents, etc.

32

Cash and cash equivalents at end of
period27,310Reasons for cash flow changes in Q1 FY2024

Increase mainly due to progress in collection of
trade receivables
Increase mainly due to maturity of insurance
funds
Decrease mainly due to dividend payments basedon financial and capital policies

75

34,139(3) Qualitative information on consolidated earnings forecasts
There are no changes to our consolidated and non-consolidated earnings forecasts announced on May 10, 2024.

42. Consolidated Financial Statements and Related Notes(1) Quarterly consolidated balance sheets(Millions of yen)
As of March 31, 2024

As of June 30, 2024

AssetsCurrent assets
Cash and deposits

23,500Notes receivable - trade29,140307

237Electronically recorded monetary claims - operating
Accounts receivable from completed construction
contracts and other
Contract assets

5,427

5,201

55,80343,70136,01121,060

Securities

1,000

5,999

Costs on construction contracts in progress

2,541

4,016

Raw materials and supplies
Other
Allowance for doubtful accounts

841

907

6,133

6,067

(1)

(1)

131,564

116,330

44,432

44,463

Accumulated depreciation(35,299)(35,569)

Buildings and structures, net

9,133

8,894

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Machinery, vehicles, tools, furniture and fixtures

2,258

2,271

Accumulated depreciation
Machinery, vehicles, tools, furniture andfixtures, net
Land(1,771)(1,798)

486

473

3,035

3,035

540

578

Accumulated depreciation

(264)

(269)

Leased assets, net

275

308

Leased assets

Construction in progress

36

37

12,966

12,749

Other

2,045

2,015

Total intangible assets

2,045

2,015

40,53937,319Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Long-term loans receivable

55

52

Retirement benefit asset

8,978

8,950

Leasehold and guarantee deposits

1,654

1,663

Insurance funds

636

467

Deferred tax assets

1,042

1,078

Other

3,019

3,024

Allowance for doubtful accounts

(341)

(342)

Total investments and other assets

55,58452,214

Total non-current assets
Total assets

570,596

66,979202,161

183,310(Millions of yen)
As of March 31, 2024

As of June 30, 2024

Liabilities
Current liabilities
Electronically recorded obligations - operating

3,447

3,333

Accounts payable for construction contracts

40,99233,095

Short-term borrowings

6,386

5,774

97

119

Lease liabilities
Income taxes payable

4,344

112

Contract liabilities

14,05815,452

Provision for bonuses

6,016

2,228

283

59

436

412

1,077

1,142

Provision for directors’ bonuses
Provision for warranties for completed
construction
Provision for loss on construction contracts
Other

4,456

4,872

Total current liabilities

81,59766,603

2,374

2,117

299

390

Retirement benefit liability

3,357

3,538

Deferred tax liabilities

4,097

3,617

Other

5,813

5,928

Total non-current liabilities

15,941

15,592

97,53982,196

Share capital

8,105

8,105

Capital surplus

4,192

4,181

Retained earnings

75,76974,460Non-current liabilities
Long-term borrowings
Lease liabilities

Total liabilities
Net assets
Shareholders’ equity

Treasury shares(5,630)(5,596)

Total shareholders’ equity

82,436

81,151

19,646

17,413295

413

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

2,051

1,969

Total accumulated other comprehensive income

21,994

19,796

Share acquisition rights
Total net assets
Total liabilities and net assets

6

190

166

104,621

101,114202,161

183,310

(2) Quarterly consolidated statements of income and comprehensive income
First quarter of consolidated fiscal year
(Millions of yen)
For the three months ended
June 30, 2023
Net sales
Net sales of completed construction contracts
Net sales in real estate business and otherTotal net sales
Cost of sales
Cost of sales of completed construction contracts
Cost of sales in real estate business and otherTotal cost of sales
Gross profit
Gross profit on completed construction contracts
Gross profit on real estate business and otherTotal gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Construction repair expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities
Compensation for damage
Total extraordinary losses
Profit before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Profit(Breakdown)
Profit attributable to owners of parent
Profit attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

7

For the three months ended
June 30, 2024

40,089637
40,72747,880646
48,52735,123371
35,49540,987361
41,349

4,966
265
5,231
5,250
(18)

6,893
284
7,178
5,637
1,540

3
357
80
440

6
416
235
658

26
22
13
62
359

29
27
54
111
2,087

271
271

－
－

14
52
－
67
562
22
201
223
339

－
－
188
188
1,899
48
505
553
1,345

339
－

1,345
－

2,278
55
26
2,359
2,698

(2,233)117(82)(2,197)
(852)

2,698

(852)

－

－

(3) Quarterly consolidated statements of cash flows(Millions of yen)
For the three months ended
June 30, 2023
Cash flows from operating activities
Profit before income taxes
Depreciation
Loss on retirement of non-current assets
Increase (decrease) in provision for loss on businessof subsidiaries and associates
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for loss on
construction contracts
Interest and dividend income
Interest expenses
Loss (gain) on sale of property, plant and equipment
Loss (gain) on sale of investment securities
Loss on valuation of investment securities
Decrease (increase) in trade receivables and contract assets
Decrease (increase) in costs on construction contracts
in progress
Increase (decrease) in trade payables
Increase (decrease) in contract liabilities
Increase (decrease) in other current liabilities
Compensation for damage
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Compensation paid for damage
Cash flows from operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from redemption of securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for retirement of property, plant and equipment
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from collection of loans receivable
Purchase of intangible assets
Proceeds from maturity of insurance funds
Other
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Proceeds from exercise of share options
Repayments of lease liabilities
Dividends paid
Cash flows from financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

8

For the three months ended
June 30, 2024

562
420
14

1,899
462
3

(152)

－

2
(2,453)154(0)(3,788)
88

(11)

64

(360)
26
－
(271)
52
16,165

(423)
29
(0)
－
－
27,371(1,174)(1,473)(10,642)
3,087
(160)
－
941
6,203
362
(22)
(943)
0
－
5,599

(8,019)
1,391
306
188
(406)
17,692423(25)(4,159)－(19)
13,910(6,000)
6,000
(328)
－
(17)
(2)
350
18
(124)
18
91
6

(1,000)
1,000
(60)
11
(4)
(1)
－
2
(82)
208
133
207

(901)
(172)
－
0
(27)
(2,177)(3,278)32
2,360
24,94927,310

(611)
(256)
(0)
0
(31)
(2,654)(3,554)75
10,63923,50034,139(4) Notes on premise of going concern
Not applicable(5) Segment information, etc.
I. First quarter of fiscal year 2023 (April 1, 2023 to June 30, 2023)
1. Information on net sales and profit (loss) by reportable segment
Reportable segments
Facilities
EnvironMachinery
Construcmental Sys- Real Estate
Systemstion Busitems Busi- BusinessBusiness
ness
ness

Net sales
Net sales to externalcustomers
Intersegment sales ortransfers
Total
Segment profit (loss)

Total

Other
(Notes) 1

Total

Adjustments(Notes) 2(Millions of yen)
Quarterly
consolidated
profit/loss andcomprehensive
income posted(Notes) 3

34,077

1,788

4,223

618

40,70620

40,727－40,727

21

0

2

0

25

110

136

(136)

－

34,098

1,788

4,226

618

40,732

131

40,863(136)

40,727

360

(297)

(224)

243

81

(14)

66

292

359

(Notes) 1. The “Other” category is a business segment that is not included in reportable segments and includes the leasing businessand insurance agency business, etc.
2. The adjustment amount of ¥292 million to segment profit/loss includes company-wide profit not allocated to eachreportable segment of ¥176 million, the reversal amount of the interest burden allocated to each segment within thecompany of ¥101 million, and an adjustment amount of ¥14 million due to the recording of loss on retirement of noncurrent assets attributable to each segment as an extraordinary loss. Differences in allocation of company-wide expenses,
etc., are the main source of company-wide profit.
3. Segment profit or loss is adjusted with ordinary profit in the quarterly consolidated statements of income andcomprehensive income.
II. First quarter of fiscal year 2024 (April 1, 2024 to June 30, 2024)
1. Information on net sales and profit (loss) by reportable segment
Reportable segments
Facilities
EnvironMachinery
Construcmental Sys- Real Estate
Systemstion Busitems Busi- BusinessBusiness
ness
ness

Net sales
Net sales to externalcustomers
Intersegment sales ortransfers

Total

Other
(Notes) 1

Total

Adjustments(Notes) 2(Millions of yen)
Quarterly
consolidated
profit/loss andcomprehensive
income posted(Notes) 3

40,069

2,394

5,412

625

48,501

26

48,527－

48,527

70

0

1

14

86

130

217

(217)

－

Total

40,139

2,395

5,413

639

48,587

156

48,744(217)

48,527

Segment profit (loss)

1,925

(319)

(119)

271

1,758

(0)

1,757

329

2,087

(Notes) 1. The “Other” category is a business segment that is not included in reportable segments and includes the leasing businessand insurance agency business, etc.
2. The adjustment amount of ¥329 million to segment profit/loss includes company-wide profit not allocated to eachreportable segment of ¥25 million, the reversal amount of the interest burden allocated to each segment within thecompany of ¥116 million, and an adjustment amount of ¥188 million due to the recording of compensation for damage
attributable to each segment as an extraordinary loss. Differences in allocation of company-wide expenses, etc., are themain source of company-wide profit.
3. Segment profit or loss is adjusted with ordinary profit in the quarterly consolidated statements of income andcomprehensive income.

(6) Notes regarding significant changes in shareholders’ equity [if any]
Not applicable9