SANIX INCORPORATED
Consolidated Financial Summary

For the First quarter ended June 30, 2012.

The financial figures in this document are based on Japanese Accounting Standards and accompanying laws. Amounts are rounded off to 1
decimal place. This document is an English translation of the Japanese-language original.

August 8, 2012

Consolidated Financial Statements
For the First quarter ended June 30, 2012
SANIX INCORPORATED
Stock Listed:Tokyo Stock Exchange First Section, Osaka Stock Exchange First Section, Fukuoka
Stock Exchange

Code No.:

4651

URL:

http://sanix.jp/index_e.htm

President and CEO:Shin-ichi Munemasa

Contact:

Toshiyuki Tominaga, General Manager, Management and Planning Division

1. Consolidated Financial Highlights for the first quarter ended June 30, 2012
(1) Consolidated Operating Results(Millions of Yen)First quarter
from April 1 and June 30
FY2012% change

FY2011% change

Net Sales．．．．．．．．．．．．．．．．．．．．．．．

8,822

17.6%

7,505

3.2%

Operating Income．．．．．．．．．．．．．．．．．

(115)-(317)-

Ordinary Income．．．．．．．．．．．．．．．．．．

(115)-(325)-Net Income．．．．．．．．．．．．．．．．．．．．．

(170)-(439)-Net Income per Share(￥)．．．．．．．．．．．．

(¥3.58)-(¥9.21)-Net Income per Share, Diluted(￥)．．．．．．

----(Reference) Comprehensive income．．．．．

(170)-(424)-(2) Consolidated Financial Position(Millions of Yen)
As of June 30

Total Assets．．．．．．．．．．．．．．．．．．．．．．．．．．．．
Net Assets．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
Shareholders' Equity Ratio (%)．．．．．．．．．．．．．．．
Reference

As of March31

FY2012FY2011

21,472

21,286

6,964

7,134

32.3%

33.4%

Shareholders’ equity as of June 30, 2012

6,936million yen

Shareholders’ equity as of March 31, 2012

7,106 million yen

2. Dividends(Dividends per Share)
FY2011 ended March 31, 2012．．．．．．．．．．．
FY2012 ending March 31, 2013 (Forecast)．．．．

1stQuarter2ndQuarter

－0.00

－0.00

At the end of
3rdQuarter

4th
Quarter

Annual－

0.00

0.00

－0.00

0.00

3. Forecasts for Consolidated Business Results(For the fiscal year ending March 31, 2013)(Millions of Yen)FY2012First Half

Net Sales．．．．．．．．．．．．．．．．．．．
Operating Income．．．．．．．．．．．．．
Ordinary Income．．．．．．．．．．．．．．
Net Income．．．．．．．．．．．．．．．．．
Net Income per Share(￥)．．．．．．．．

Full Year% cahnge% change

18,94022.6%

38,00020.8%

635138.1%

2,000

388.0%

615

159.3%

1,970

466.1%

540-

1,820-¥11.32-¥38.15-

There is no change from initial projections for semi-annual and annual operational results publicly announced on May 11, 2012.

4. Others(1) Changes in significant subsidiaries during the period: None(Note) Indicates changes in specified subsidiaries resulting in the change in consolidation scope during the first quarter ended
June 30, 2012.

(2) Adoption of special quarterly accounting methods: None(Note) Indicates adoption of simplified accounting treatment and special accounting treatments for quarterly consolidated
financial statements(3) Changes in accounting principles, acoounting estimates and correction of prior errorsⅰ)Changes in accounting principles due to revisions to accounting standards: Yesⅱ)Changes other than shown in ⅰ) above: Noneⅲ)Changes in accounting estimates: Yesⅳ)Correction of prior period error: None
(4) Number of Shares Issued and Outstanding(Shares)

Number of shares issued and outstanding at period end．．．．．．．．．
Number of treasury stocks at period end．．．．．．．．．．．．．．．．．．．
Average number of shares issued and outstanding during the fiscal term．．．

First Quarter
ended June 30, 2012

Full Year
ended March 31, 2012

48,919,396

48,919,396

1,210,071

1,210,021

47,709,362

47,709,412 (1Q)

*Implementation status about the quarterly review:
This summary of financial statements is exempt from quarterly review procedure required by Financial Instruments andExchange Act. A part of quarterly review for securities report based on Financial Instruments and Exchange Act have notfinished at the time of disclosure of this summary of financial statements.
*Note to ensure appropriate use of forecasts:
Forecasts in this document are based on assumptions, prospects and plans as of the date of this document. Actual results may
differ significantly from these forecasts, due to various factors affecting the Company’s business performance, such as change
in economical conditions.

Index of the attachment
1. Qualitative Information for the first quarter ended June 30, 20122(1) Qualitative Information of Consolidated Operation Results .......................................…….……………........

2(2) Qualitative Information of Consolidated Financial Position ......................................………..…..….…….…

3(3) Qualitative Information of the Forecast of Consolidated Business Results …………..….………………...…

32. Other Information

3(1) Changes in significant subsidiaries during the period ..........................................................………….….…

3(2) Adoption of special quarterly accounting methods................……………...……………………………………

3(3) Changes in accounting principles, procedures and presentation methods............................………..…...

33. Consolidated Financial Statements for the first quarter ended June 30, 2012

4(1) Consolidated Quarterly Balance Sheets ......................................................................….....…………….…

4(2) Consolidated Quarterly Statements of Income and Comprehensive Income........................……………..

6

Consolidated Quarterly Statements of Income
For the first quarter...........................................................…...………….…..………………………………

6Comprehensive Income
For the first quarter...........................................................…...………….…..………………………………

7(3) Note regarding assumption of a going concern…………………………………………………………………

7(4) Segment Information………………………………………………………………………………………………..

7(5) Note regarding significant changes in the amount of shareholders’ equity………………………………….

7

4. Supplemental Information

8Net Sales by Division ....…………………………………….………..…………………………………………...…

-1-8

1. Qualitative Information for the first quarter ended June 30, 2012
(1) Qualitative Information of Consolidated Operation Results
In the first quarter of the fiscal year ending March 31, 2013, the Japanese economy demand frompost-earthquake disaster reconstruction surfaced and personal consumption is back on track, thanks partly to thereinstitution of subsidy payments for eco-car purchases. That said, the actual state of the economy is uncertain
owing to the impact of the economic slowdown in emerging countries and electrical power shortage amid clear
signs of a European recession stemming from the fiscal instability in southern Europe.
Under these circumstances, as a business model in the next-generation energy field, SANIX promoted sales of
our Solar Photovoltaic Power Generation System, a clean energy source, and resource-recycling power
generation system, which reprocesses plastic waste as fuel.
In the first quarter of the fiscal year ending March 31, 2013, although Sales in the HS Division rose at a low rate
(0.9% increase year-on-year), sales in the ERD Division increased by 52.1%(year-on-year) because “Plastic fuelbusiness” increased greatly by increasing propitiously volume of plastics brought in, and “Power Generation”
increased greatly by a stable operation in Tomakomai Power Plant and rise of unit price of electric power sellingcompared to previous period. As a result, the Group’s total sales amounted to 8,822 million yen (17.6% increaseyear-on-year).
Regarding incomes, operating income in the HS Division decreased by decline of the constituent ratio of “TermiteEradication Service” and ” Under-Floor/-Roof Ventiration System” with higher profitability, but operating income in theERD Division increased greatly by increased.
As a result, the Sanix Group reported operating loss of 115 million yen (operating loss of 317 million yen for thesame period last year), ordinary loss of 115 million yen (ordinary loss of 325 million yen for the same period lastyear) and net loss of 170 million yen (net loss of 439 million yen for the same period last year).
Consolidated results of individual divisions for the year were as follows:Earnings of Individual Divisions:Home Sanitation Division
Sales of the mainstay, Solar Photovoltaic Power Generation System, steadily increased by 99.4% (year-on-year). However,sales of Termite Eradication Service decreased by 42.7% (year-on-year) and sales of Under-Floor/-Roof Ventiration Systemdecreased by 52.7% (year-on-year) and sales of Foundation Repairing/Home Reinforcement System decreased by 61.5%(year-on-year) because the number of requests on peak season decreased compared to previous period and sales personnel
were shifted for sales of Solar Photovoltaic Power Generation System to sell Solar Photovoltaic Power Generation System
positively. Consequently, sales in the HS Division amounted to 4,501 million yen (up 0.9% from the last year).

Regarding operating margins, the Division’s operating income decreased by 84.2% year-on-year to 121 million
yen, since the constituent ratio of “Termite Eradication Service” and ” Under-Floor/-Roof Ventiration System” with higher
profitability declined.
Establishment Sanitation Division
The ES Division concentrated its resources on marketing to corporate customers, such as building andcondominium management companies to improve business efficiency and recover profitability. Consequently, theES Division’s sales amounted to 723 million yen (up 6.8% year-on-year) because sales of the existing products
and Solar Photovoltaic Power Generation System for housing complex increased steadily.
Regarding operating margins, the Division’s operating income recorded 11 million yen (operating loss recorded 11
million yen last year) because sale increased.

-2-Environmental Resources Development Division
Sales in Plastic fuel business increased by 56.6% (year-on-year), due to increases in the volume of plastic
brought in. Power Sales increased by 275.9% year-on-year by the following reasons; the rate of operation in theSanix Energy’s Tomakomai Power Plant (Tomakomai City, Hokkaido Prefecture) was improved by a stable andcontinuous operation and shortening the regular maintenance period compared to the previous year; unit price ofelectric power selling rose compared to previous period. Sales in Organic Liquid Waste Processing steadily
increased by 2.7% (year-on-year). As a result, sales in the ERD Division amounted to 3,597 million yen (up 52.1%
from the last year).
The Division’s operating income recorded 294 million yen (operating loss recorded 491 million yen last year) due
to improving sales productivity and reduction of costs by increasing sales.

(2) Qualitative Information of Consolidated Financial Position
Assets, Liabilities and Net Assets
Total assets amounted to 21,472 million yen as of the end of the first quarter of the current fiscal year, up 185
million yen from the end of the previous fiscal year. This was mainly due to an increase in Cash and deposits andNotes and accounts receivable-trade. Total liabilities were 14,507 million yen, up 355 million yen from the end of
the previous fiscal year. This was mainly due to an increase in Notes and accounts payable-trade. Net assets
totaled 6,964 million yen, down 170 million yen from the end of the previous fiscal year. This was primarily due tothe net loss of 170 million yen incurred during the quarter. Consequently, the ratio of owners’ equity was 32.3%,
compared to 33.4% for the previous consolidated fiscal year end.

(3) Qualitative information on the forecast of consolidated business results
There is no change in the forecast of consolidated business results for the current fiscal year ending March 2013,
the Sanix Group announced on May 11, 2012.

2. Other Information(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in consolidation scope): None
(2) Adoption of special quaterly accounting methods : None
(3) Changes in accounting principles, procedures and presentation methods: Yes(Changes in the depreciation method)
In the first quarter ended June 30, 2012, the Company and its domestic consolidated subsidiaries changed thedepreciation method for tangible fixed assets acquired on or after April 1, 2012 in line with the revision of theCorporate Tax Act. The effect of this change on operating income, ordinary income and income before income
taces and minority interests for the current quarter is minimal.

-3-3. Consolidated Financial Statements for the first quarter ended June 30, 2012
(1) Consolidated Quarterly Balance Sheets(Thousands of Yen)

As of March 31

As of June 30

FY2011FY2012

Assets:Current Assets:
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Raw materials and supplies
OtherAllowance for doubtful accounts
Total Current Assets:

1,365,530

1,524,052

3,309,437

3,397,017

53,18752,858

1,713,692

1,630,283

630,058

667,910(107,831)(116,621)

6,964,074

7,155,500

2,090,183

2,044,722

239,367

251,141

8,979,529

8,979,529

414,618

476,277

11,723,699

11,751,671

737,377

709,375

59,10558,429796,482

767,804

1,802,163

1,797,096

14,322,345

14,316,572

21,286,420

21,472,072

1,386,410

1,847,378

2,325,000

2,097,500

157,942

187,751

50,57054,6052,330,436

2,406,092

2,130,611

2,168,870

8,380,971

8,762,198

70,00070,0003,559,741

3,371,048

1,382,781

1,385,880

178,256

178,631331,431345,745

248,251

393,796

5,770,462

5,745,101

14,151,433

14,507,300

Fixed Assets:
Property, Plant and Equipment:
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Other, net
Total Property, Plant and Equipment:
Intangible Fixed Assets:
Goodwill
Other, net
Total Property, Plant and Equipment:
Total Investments and Other Assets:
Total Fixed Assets:

Total Assets:
Liabilities:
Current Liabilities:
Notes and accounts payable-trade
Short-term loans payable
Accrued income taxes
Provision
Accounts payable-other
Other
Total Current Liabilities:

Non-Current Liabilities:
Bonds payable
Long-term loans payable
Provision for retirement benefits
Provision for directors' retirement benefits
Provision for disposal site closing expenses
Other
Total Non-Current Liabilities:

Total Liabilities:-4-(Thousands of Yen)

As of March 31

As of June 30

FY2011FY2012

Net Assets:
Shareholders' Equity:
Capital stock
Retained earnings
Treasury stock
Total Shareholders' Equity:14,041,834

14,041,834(5,377,499)(5,548,117)(1,610,767)(1,610,778)

7,053,567

6,882,938

52,77253,60552,77253,60528,64728,227

Valuation and translation adjustments:
Valuation difference on available-for-sale securities
Total Valuation and translation adjustments:

Minority Interests:
Total Net Assets:
Total Liabilities and Net Assets:-5-

7,134,986

6,964,772

21,286,420

21,472,072

(2) Consolidated Quarterly Statement of Income(Thousands of Yen)First quarter
from April 1 to June 30
FY2012FY2011

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income:Interest income
Dividends income
Land and house rent revenue
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Other
Total non-operating expenses
Ordinary loss
Extraordinary loss:
Loss on retirement of fixed assets
Loss on cancellation of lease contracts
Total extraordinary loss
loss before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
loss before minority interests
Minority interests in loss
Net loss-6-7,505,414

8,822,722

5,209,270

6,268,556

2,296,143

2,554,166

2,613,864

2,669,741(317,721)(115,575)

1,571

1,406

8,797

8,676

16,81917,017

11,44015,33338,63042,43345,40641,895

1,192

771

46,59942,666(325,690)(115,808)

96

503

973
1,069

―
503

(326,759)(116,312)

40,221

51,664

72,974

3,059

113,196

54,723(439,956)(171,036)

(684)

(419)

(439,271)(170,617)

（Consolidated Quarterly Comprehensive Income）(Thousands of Yen)First quarter
from April 1 to June 30FY2012

FY2011

Income (loss) before minority interests
Other comprehensive income
Share of other comprehensive income of associates accounted forusing equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to parent company
Comprehensive income attributable to minority interests(439,956)(171,036)

15,368833

15,368833(424,587)(170,203)(423,903)(169,784)

(684)

(419)

(3) Note regarding assumption of a going concern
There is no events or situations that arouse serious doubt regarding the assumption of a going concern.

(4) Segment Information
Ⅰ. Prior first quarter (From April 1, 2011 to June 30, 2011)(Thousands of Yen)
Segments

HSESERD

Elimination

Total

Consolidated

or Group
Net Sales:(1)Sales to customers . . . . . . . . . . . . . . .

4,463,163

677,265

2,364,985-

7,505,414

7,505,414(2)Internal sales among segments
and transfer accounts. . . . . . . . . . . . . .

------

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,463,163

677,265

2,364,985

7,505,414-

7,505,414

Operating income (loss) . . . . . . . . . . . . . .

768,290(11,973)(491,880)

264,436(582,158)(317,721)

Ⅱ. Consolidated fiscal year (From April 1, 2012 to June 30, 2012)(Thousands of Yen)
Segments

HSES

ERD

Elimination

Total

Consolidatedor GroupNet Sales:(1)Sales to customers . . . . . . . . . . . . . . .

4,501,698

723,326

3,597,698

8,822,722-8,822,722(2)Internal sales among segments
and transfer accounts. . . . . . . . . . . . . .

------

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,501,698

723,326

3,597,698

8,822,722-

8,822,722

Operating income (loss) . . . . . . . . . . . . . .

121,147

11,468294,409427,026(542,601)(115,575)(5) Note regarding significant changes in the amount of shareholders’ equity
There is no significant change.

-7-

4. Supplemental Information
Consolidated Net Sales by Division(Thousands of Yen)First quarter
from April 1 to June 30
FY2011

Changes

FY2012

Solar photovoltaic power generation system
Termite Eradication Service
Under-Roof/Floor Ventilation System
Foundation Repairing/Home Reinforcement System
Other

1,400,010

2,791,618

1,391,607

1,228,557

703,717(524,840)

573,111

271,020(302,091)

484,117

186,385(297,732)

777,365

548,956(228,408)

Home Sanitation Division Total:

4,463,163

4,501,698

38,534Anti-rust equipment installation
Repair of building water-works
Waterproofing of building
Solar photovoltaic power generation system
Other118,933149,719

30,786

210,417211,224

807

99,29974,128(25,171)

93,012

119,319

26,306

155,602

168,934

13,332

Establishment Sanitation Division Total:

677,265

723,326

46,060

Plastic fuelIndustrial waste (Organic Waste Water Recycle)
Generation of electricity
Final disposal
Other
Environmental Resources Development Division Total:

1,364,383

2,137,029

772,646

401,499

412,303

10,803200,248752,778

552,530

234,809

151,442(83,367)

164,043

144,144(19,899)2,364,985

3,597,698

1,232,713

Total Net Sales:

7,505,414

8,822,722

1,317,308-8-