“Century 2025” Phase1

FY2017 Outline of Financial Results

May 11, 2018
Sanki Engineering Co., Ltd.
1FY2017 Overview◆Business results
Net sales(Millions of yen)“Century 2025”
Phase 1（Consolidated）
220,000
200,000
180,000
160,000
140,000
120,000
100,000
80,00060,00040,00020,0000Gross profit(Millions of yen)“Century 2025”
Phase 1（Consolidated）

Planned
計画値 value

Net sales
売上高

Planned
計画値value

Gross profit
売上総利益2(forecast)

FY201818年度（予）

17年度
FY2017

16年度
FY2016

15年度
FY2015

14年度
FY2014

13年度
FY2013

12年度
FY2012

11年度
FY2011

10年度
FY201009年度
FY2009(forecast)

FY201818年度（予）

17年度
FY2017FY2016
16年度

15年度
FY2015

14年度
FY2014

13年度
FY2013

12年度
FY2012

11年度
FY2011

10年度
FY201009年度
FY200930,00028,00026,00024,00022,00020,00018,00016,00014,00012,00010,000
8,000
6,000
4,000
2,000
0

FY2017 Overview◆Business results
Operating income(Millions of yen)（Consolidated）“Century 2025”
Phase 1

Ordinary income(Millions of yen)“Century 2025”
Phase 1

（Consolidated）

8,000

9,000

7,000

8,000

6,000

7,000

5,000

6,000

4,000

5,000

3,000

4,000

2,000

3,000

1,000

2,000
1,000

Planned
計画値value

Operatingincome営業利益
Plannedvalue

Planned
計画値value

Ordinary income
経常利益

3(forecast)

FY201818年度（予）

17年度
FY2017

16年度
FY2016

15年度

FY2015

14年度
FY2014

13年度
FY2013

12年度
FY2012

11年度
FY2011

10年度
FY201009年度
FY20090(forecast)

FY201818年度（予）FY2017
17年度

16年度
FY2016

15年度
FY2015

14年度
FY2014

13年度
FY2013

12年度
FY2012

11年度
FY2011

10年度
FY201009年度
FY20090FY2017 Overview◆Topics by Segment
・Facilities Construction Business(1) Strategically receive orders for large-scale projects,
which will form future stock(2) Expansion of on-site support measures(internet procurement and expanded operational support)

・ Machinery Systems Business(1) Order received for large-scale project of airport transporting facilities(2) Development of world’s fastest conveyor and sorting device(Cross Belt Sorter)

・ Environmental Systems Business(1) Full scale participation in the wood biomass gasification power generation
facility market(2) First DBO* style order received including new construction work
(2nd consecutive year as a DBO project)*DBO (Design Build Operate) is a means of achieving the private management of publicly owned facilities
by placing a blanket order for design, building, operation and maintenance with a private enterprise4

FY2017 Overview◆Various initiatives
Measures to enhance “quality,” and to become “the company of choice”(1) Shareholder returns

Dividends, retirement and acquisition of treasury stock(2) Enhancing quality

Progress of the “STeP Project”(3) Activities this year

Development of new technology, work-style reforms, social contributions,communication of information

Details to follow
5Shareholder Returns
Extra dividend granted for
3 years in a row leading tothe annual dividend being
increased to 35 yen

Dividend Per Share (yen)◆Annual dividends
4035302520151050
FY2013

FY2014

Regular dividend

FY2015

Commemorative dividend

FY2016FY2017Extra dividend◆Retirement and acquisition of treasury stock(1) 3,000,000 shares retired (retirement completed in May 2017)(2) 3,000,000 shares acquired (acquisition completed in December 2017)
6Enhancing Quality◆ Progress of the STeP Project(1) Construction of the “Sanki Techno Center”(The new Technical Research & Development
Institute commenced operation in March 2018;
Whole facilities scheduled to commence operationin October 2018)

Sanki Techno Center(conceptual drawing)(2) Demolition of the old Yamato Plant facilities(Demolition completed in April 2018)(3) Completion of the temporary relocation of
the machinery systems plant

Scene of the demolition of
the old Yamato Plant(Construction of the new plant is scheduled to begin in May 2018
Operation of the new plant is scheduled to commence in August 2019)
7Activities This Year

(1) Development of new technology

Market rollout of aluminum
refrigerant piping method“Aluminger”

To see the Sankinews release

Received first order for DBO style of energyrecovery waste treatment facilities including newconstruction work(Saga Prefecture)

Development of world’s fastest conveyor
and sorting device (Cross Belt Sorter)

Full scale participation in the wood biomass
gasification power generation facility market

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Activities This Year
(2) Work-style reforms

Meeting to exchange opinions
between division chiefs andyoung employees

2nd “Sanki Ladies’ Forum”(on this occasion, the forum
was held for female
engineers, and it wasattended by the President)

Sanki Super Meister / Sanki Best Partner

Opening of the“Women’s Hotline”

9Activities This Year
(3) Social contributions

Contributions and planting
trees through “SANKI YOU
Eco Contribution Points”Participation in the “Uchimizu Biyori”
event held by Bureau of Environment ofthe Tokyo Metropolitan Government

Weeding event
at “Sanki no Mori”
Fundraising activity for theJapan Guide Dog
Association

Participating in blood donation by theJapanese Red Cross Tokyo
Metropolitan Blood Center10

Activities This Year
(4) Communication of information (1)

HVAC&R JAPAN 2018
(Held: February 27 to March 2, 2018 at Makuhari Messe)

4th INTERPHEX OSAKA(Held: February 21 to 23, 2018 at INTEX OSAKA)

ENEX2018(Held: February 14 to 16, 2018 at Tokyo Big Site)

Sewage Works Exhibition ’17(Held: August 1 to 4, 2017 at Tokyo Big Site)

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Activities This Year
(4) Communication of information (2)• Advertisements in The Nikkei
Corporate advertising
Recruitment advertising

Corporate advertising in The Nikkei(Nikkei Social Innovation Forum)• Broadcast of television programs Business information program, “Kenja no Sentaku : Leaders”(Broadcast in February 2018 on Nikkei CNBC, BS12TwellV,and Sun Television) Business documentary program, “Unknown Gulliver”
Kenja no Sentaku : Leaders(Broadcast in March 2018 on TV Tokyo,Television Hokkaido, Aichi Television Broadcasting,Television Osaka, TV Setouchi, and TVQ Kyushu Broadcasting)

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ESG Initiatives
StatusEEnvironment

SSociety

GGovernance・Continuous donation of “SANKI YOU Eco Contribution Points”
・Orders received for DBO style of new energy-recovery waste treatment facilities, including
new construction work
・Constructed wood biomass gasification power generation facility (related torenewable energy)・Constructed high-level energy-saving facility in Shanghai, China, inconjunction with NEDO and others
・Registered as a “ZEB Planner”, which is a license system that was instituted by theMinistry of Economy, Trade, and Industry in FY2017
・Entered the third year of the company’s unique work style reform, “Smile Project”
・Initiated the above project’s “Smile Site Plan” subcommittee, which is focusing on
working styles of construction sites
・Established the “Women’s Hotline”, women-only consultation service
・Holding meetings to exchange opinions between division chiefs and young employees
・Holding a meeting for female engineers to exchange opinions at the 2nd “Sanki Ladies’Forum”
・Increased the content of self-evaluation by the Board of Directors
・Participated in a digital voting platform・Conducted meeting to exchange opinions about corporate governance・Engaged in revision of decision-making procedure standards for the Board of Directors
・Increased dialogue with shareholders (strengthened the system, increased the number ofopportunities for dialogue, and held briefing sessions for individual investors)

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Finally

The Sanki Group pursues growth one step at a time,
constantly refining its technical skills and human resources
to provide engineering that creates customer satisfaction in any age,and achieve sustainable growth and medium to long-term increases incorporate value.

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