Status of Business Progress“Century 2025” Phase 2
FY2019 2nd Quarter

November 8, 2019
Sanki Engineering Co., Ltd.
1Orders Received/Net Sales(Millions of yen)

Consolidated Orders Received

250,000

Phase2Phase1

Consolidated Net Sales(Millions of yen)

250,000

Phase2Phase1(Forecast)(Forecast)

200,000(Beginningof period)

150,000

150,000

100,000

100,000

50,00050,0000(Beginningof period)

200,0000
2016年度FY20162017年度FY2017
第２四半期
2Q

2018年度FY2018
年度yearFull

2019年度FY20192016年度FY20162017年度FY20172Q
第２四半期

2018年度FY20182019年度FY2019年度yearFull2Gross Profit/MarginConsolidated Gross Profit Margin
Consolidated Gross Profit(Millions of yen)Phase2Phase135,00020.0%(Forecast)(Beginningof period)

30,000Phase2Phase118.0%
16.0%(Forecast)

14.0%
25,00012.0%
20,00010.0%
8.0%

15,000

6.0%
10,000
4.0%
5,000

2.0%
0.0%

0
2016年度FY20162017年度FY2017
第２四半期
2Q

2018年度FY2018
年度yearFull

2019年度FY20192016年度FY20162017年度FY2017
第２四半期
2Q

2018年度FY20182019年度FY2019Full
年度year3

Basic Policy of Phase 2
FY2022 - FY2025

FY2019 - FY2021
FY2016 - FY2018

Phase 2Phase 1

Enhance ReliabilityPhase 3
Company of Choice

Improve component technologies
and achieve stable growth◆ Promote GrowthStrategies
Pursue future growth in the areasof technology and business◆ Enhance the Sanki
Brand
Develop human resources thatpossess the Sanki spirit

Further pursue quality• Improve construction productivity• Meet to energy saving and labor
reduction needs• Promote technological R&D• Continue to receive orders for stock
projects• Create a better work conditions• Improve internal communication◆ Disclose financial &capital policies
and ESG policies◆ Reinforce Information Transmission

Increasing reliability and becominga company of choice◆ Strengthen CoreBusinesses

Refining Technical Skills
and Human Resources toEnhance Quality

Enhance Quality

Long-Term Vision“Century 2025”
Become the company
that is more likely to bechosen by stakeholders

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Status of Measures(1)◆Strengthen Core Businesses
Completion of the STeP project*・The series of improvements conducted from fiscal 2016 is complete.

＜Yamato Product Center＞
Full-scale operation in September 2019

＜Sanki Techno Center＞ Fully opened in October 2018

<Redevelopment of the area around the former Yamato
Engineering Center> Land lease commenced in May 2018
Source: Nippon Life Insurance Company websitehttps://www.nissay.co.jp/hojin/tenanto/pdf/logistics.pdf* The STeP (Sanki Techno Park) ProjectA project to redevelop the land and buildings on the Sanki Yamato Site (the Sanki Yamato Building and the former Yamato Engineering Center),a real estate holding of Sanki Engineering.

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Status of Measures(2)◆Growth Strategy
Full-scale operation of the Yamato Product Center・Factory in Yamato City, Kanagawa Prefecture, operated by the machinery
systems business since September<Interior of the Yamato Product Center (1)><Exterior of the Yamato Product Center><Building Outline>
Site area: 10,984 m2
Building area: 5,509 m2
Floor area: 7,611 m2
Structure: Steel frame
Height: 10 mFloors: 2 above-ground floors<Interior of the Yamato Product Center (2)>6

Status of Measures(3)◆Financial/Capital Policy（Yen）

Dividend per share
Phase1

Phase280(Forecast)

60<Returns to shareholders>

40●Dividends

20・Interim: 35 yen
・Annual: 70 yen (forecast)●Acquisition/Retirement of treasury stock0
FY2016 2017年度
FY2017 2018年度
FY2018 2019年度
FY20192016年度Regular
普通配当

Extra
特別配当

dividend

dividend・Acquisition: 2,000,000 shares (to be conducted during the fiscal year)
・Retirement: 2,000,000 shares (completed August 19, 2019)<Returns to partner companies>● Change of conditions for payments to partner companies
・Change of capital payments of less than 40 million yen to all cash payments
・To be applied from March 2020 payment
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Status of Measures (4)◆Enhance the Sanki Brand
Human resource development and Local contributions through Sanki techno Center

New employees training

Holding the summer holiday event, Let’sExperience Heat, for parents and children(hosted by The Japan Society ofMechanical Engineers, Environmental
Engineering Division)

Tour for local governments

Continuation of the earthquake recovery project

Participation in the 31st Mori wa Umi no Koibito
tree planting event(Mt. Yagoshi, Hikobae no Mori, Iwate Prefecture)

Holding the Kizuna Tsugaru shamisen
concert to pray for recovery

Project members conducted inspections
from Hachinohe City, Aomori Prefecture
to Kuji City, Iwate Prefecture

8Status of Measures (5)◆ Reinforce information transmission
Increased information transmission throughexhibitions, etc.

<Nikkei IR & Individual Investor Fair 2019><Sewage Works Exhibition ‘19 Yokohama><RHVAC Exhibition (Bangkok)>

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Status of Measures(6)◆Support Sports Organizations andEnhance the Corporate Brand<Yamato Sylphid> (women’s soccer)<Japan Deaf Rugby Union><Soukei Classic> (annual soccer match)<Japan Handball Association><East Hokkaido Cranes><Tokyo Dome>

10Remarks on Business Forecast
The descriptions contained in these materials, except for those as to past or present facts, are based on
anticipations, assumptions, evaluations and estimations in light of the information available as of November 8,
2019.
Therefore, the actual results may differ from those presented herein as a consequence of various factors,
including uncertainties and prospective changes in the economic environment.
<Major factors>● Credit exposures of client companies.
● Sudden changes in material and equipment cost and labor cost.
● Stock Market fluctuations.

● Increase in retirement benefits or debts.
● Country risk.
● Accident or disaster in facilities construction and other.
● Outbreak of the unprofitable project.
● Risk in the Real Estate Business.

For inquiries, please contact:● Risk of legal action.

Corporate Communications
Department● Risk of legal regulation.
● Outbreak to the natural disasters.

TEL: +81-3-6367-7041● Fluctuations in private capital investment

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