SANIX INCORPORATED
Consolidated Financial Summary

For the Third Quarter ended December 31, 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.

February 12, 2013

Consolidated Financial Statements
For the third quarter ended December 31, 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/lang_en/index_e.htm

President and CEO:Shin-ichi Munemasa

Contact:

Toshiyuki Tominaga, General Manager, Management and Planning Division

1. Consolidated Financial Highlights for the third quarter ended December 31, 2012
(1) Consolidated Operating Results(Millions of Yen)
Third Qurter
from April 1 to December 31
FY2012% change

FY2011% change

Net Sales．．．．．．．．．．．．．．．．．．．．．．．

27,401

17.1

23,395

6.5

Operating Income．．．．．．．．．．．．．．．．．

166(64.8)

471(58.6)

Ordinary Income．．．．．．．．．．．．．．．．．．

84(80.3)

427(60.4)Net Income．．．．．．．．．．．．．．．．．．．．．

(125)-48(93.0)

Net Income per Share(￥)．．．．．．．．．．．．

(¥2.64)

-

¥1.01

-

Net Income per Share, Diluted(￥)．．．．．．

----(Reference) Comprehensive Income．．．．．

(102)-59(91.4)(2) Consolidated Financial Position(Millions of Yen)
As of December 31

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

As of March31

FY2012FY2011

23,563

21,286

7,110

7,134

30.1%

33.4%

Shareholders’ equity as of December 31, 20127,081 million yen

Shareholders’ equity as of March 31, 2012

7,106million yen

2. Dividends
1stQuarter2ndQuarter

FY2011 ended March 31, 2012．．．．．．．．．．．．．．

－0.00

FY2012 ending March 31, 2013 (Forecast)．．．．．．

－0.00

At the end of
3rdQuarter

4thQuarter

Annual

－0.00

0.00

－0.00

0.00

(Dividends per Share)3. Forecasts for Consolidated Business Results for the Fiscal Year ending March 31, 2013
(Millions of Yen)FY2012
Full YearNet Sales．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
Operating Income．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
Ordinary Income．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
Net Income．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
Net Income per Share(￥)．．．．．．．．．．．．．．．．．．．．．．．．．．．．．

% change

43,500

38.3%

2,600

534.3%

2,480

612.7%

2,100-¥44.02-SANIX INCORPORATED revised initial projections for 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 third quarter ended
December 31, 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．．．

Third Quarter
ended Dec. 31, 2012

Full Year
ended March 31, 2012

48,919,396

48,919,396

1,210,185

1,210,021

47,709,272

47,709,415(3Q)*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 third quarter ended December 31, 2012

2(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 …………..….………………...…

3

2. Other Information

4(1) Changes in significant subsidiaries during the period ..........................................................………….….…

4(2) Adoption of special quarterly accounting methods................……………...……………………………………

4(3) Changes in accounting principles, procedures and presentation methods............................………….…...

4

3. Consolidated Financial Statements for third quarter ended December 31, 2012

5(1) Consolidated Quarterly Balance Sheets ......................................................................….....…………….…

5(2) Consolidated Quarterly Statements of Income and Comprehensive Income........................…………...…..

7

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

7Comprehensive Income
For the third quarter..........................................................…...………….…..………………………………

8(3) Note regarding assumption of a going concern…………………………………………………………….….…

9(4) Note regarding significant changes in the amount of shareholders’ equity……………………………...……

9(5) Segment Information………………………………………………………………………………………………..

9

4. Supplemental Information

10Net Sales by Division .......…………………………………………..…………………………………………...…

-1-10

1. Qualitative Information for the third quarter ended December 31, 2012
(1)Qualitative Information of Consolidated Operation Results
In the third quarter of the fiscal year ending March 31, 2013, rergarding the Japanese economy, demand frompost-earthquake disaster reconstruction surfaced and it showed signs of a recovery temporarily, but the pace of therecovery slowed down. That said, the actual state of the economy is uncertain owing to the impact of the economic

slowdown in emerging countries and concern for deterioration of corporate earnings amid clear signs of aEuropean recession.
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 third quarter of the fiscal year ending March 31, 2013, in the HS Division, sales of Solar Photovoltaic Power
Generation System increased steadily and sales increased by 10.8% (year-on-year). Sales in the ERD Division
increased by 27.8%(year-on-year) because “Plastic fuel business” increased greatly by increasing propitiously
volume of plastics brought in, and “Power Generation” increased greatly by a stable operation in TomakomaiPower Plant and rise of unit price of electric power selling compared to previous period. As a result, the Group’s
total sales amounted to 27,402 million yen (17.1% increase year-on-year).
Regarding incomes, operating income in the HS Division decreased because a decline of the constituent ratio of“Termite Eradication Service” and ” Under-Floor/-Roof Ventiration System” with higher profitability, and through“Act on Special Measures Concerning Renewable Energy Sources”, sales promotion expenses as priorinvestment for Indusrial Solar Photovoltaic Power Generation System, which we really focused after the third quarterof the current fiscal year, increased. On the other hands, operating income in the ERD Division increased greatly byincreased sales.
As a result, the Sanix Group reported operating income of 166 million yen (decreased by 64.8% from the lastyear), ordinary income of 82 million yen (decreased by 80.3% from the last year) and net loss of 125 million yen(net income of 48 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 132.2% (year-on-year). However,sales of Termite Eradication Service decreased by 33.4% (year-on-year) and sales of Under-Floor/-Roof Ventiration Systemdecreased by 49.5% (year-on-year) and sales of Foundation Repairing/Home Reinforcement System decreased by 60.7%(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 14,048 million yen (up 10.8% from the last year).

Regarding operating margins, the Division’s operating income decreased by 51.2% year-on-year to 930 million
yen because the constituent ratio of “Termite Eradication Service” and ” Under-Floor/-Roof Ventiration System” withhigher profitability declined, and through “Act on Special Measures Concerning Renewable Energy Sources”,
sales promotion expenses for Indusrial Solar Photovoltaic Power Generation System, which we really focused after
the third quarter of the current fiscal year, increased.

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 2,271 million yen (up 11.0% year-on-year) because sales of the existing products-2-and Solar Photovoltaic Power Generation System for housing complex increased steadily.
Regarding operating margins, the Division’s operating income recorded 49 million yen (operating loss recorded 0million yen last year) because sale increased.
Environmental Resources Development Division
Sales in Plastic fuel business increased by 39.9% (year-on-year) due to increases in the volume of plastic brought
in. Power Sales increased by 42.2% (year-on-year) because the rate of operation in the Sanix Energy’s
Tomakomai Power Plant (Tomakomai City, Hokkaido Prefecture) was improved by a stable and continuous
operation and unit price of electric power selling rose compared to previous period. On the other hand, sales in
Organic Liquid Waste Processing decreased by 5.9% (year-on-year) due to decrease in the volume of organic
liquid waste brought in. As a result, sales in the ERD Division amounted to 11,082 million yen (up 27.8% from thelast year).
The Division’s operating income recorded 927 million yen (up 472.2% from the last year) due to improving sales
productivity and reduction of costs by increasing sales.

(2) Qualitative Information of Consolidated Financial Position
Total assets amounted to 23,563 million yen as of the end of the third quarter of the current fiscal year, up 2,277
million yen from the end of the previous fiscal year. This was mainly due to an increase in cash and deposits,
notes and accounts receivable-trade and inventories. Total liabilities were 16,453 million yen, up 2,301 million yen
from the end of the previous fiscal year. This was mainly due to an increase in notes and accounts payable-trade
and accounts payable-other. Net assets totaled 7,110 million yen, down 24 million yen from the end of theprevious fiscal year. This was mainly due to the net loss of 125 million yen incurred during the quarter.
Consequently, the ratio of owners’ equity was 30.1%, compared to 33.4% for the previous consolidated fiscal yearend.

(3) Qualitative information on the forecast of consolidated business results
We announces revisions of its operational result forecasts for the full year, previously announced on March 11,2012. Please refer to “Notice Concerning Revision of Earnings Forecast” which the company annouced onFebruary 12, 2013.

Full year results forecast (April 1, 2012 to March 31, 2013)(Millions of Yen)

Previous Forecast

38,000Operating
Income
2,000

Revised Forecast

43,5002,600

Difference

5,500% Change
Results from year
beforeOrdinary
Income
1,970

1,820

Net Income
per Share
38.15Yen

2,480

2,100

44.02Yen

600

510280

―

14.5％

30.0%

25.9％

15.4％

―

31,454409

347

130.29Yen

Net Sales-3-Net Income2. Other Information(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in consolidation scope): Yes
From the second quarter of fiscal year ending March 31, 2013, Shangri (Shanghai) Energy and Technology
Co.,Ltd and Sanix Engineering Incorporated were included in the scope of consolidation due to increase in
their materiality.

(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
the depreciation method for tangible fixed assets acquired on or after April 1, 2012 in line with the revision of
the Corporate 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.

-4-3. Consolidated Financial Statements for the third quarter ended December 31, 2012
(1) Consolidated Quarterly Balance Sheets(Thousands of Yen)

As of March 31

As of December 31

FY2011FY2012

Assets:Current Assets:
Cash and deposits
Notes and accounts receivable-tradeCosts on uncompleted construction contracts
Merchandise and finished goods
Raw materials and supplies
Other
Allowance for doubtful accounts
Total Current Assets:

1,365,530

2,244,202

3,309,437

3,850,010－

207,531

53,18746,002

1,713,692

2,198,319

630,058

789,017(107,831)(112,563)

6,964,074

9,222,520

2,090,183

1,943,569

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 Intangible Fixed Assets:
Total Investments and Other Assets:
Total Assets:

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

239,367

364,7098,979,529

8,979,529

414,618

651,744

11,723,699

11,939,552

737,377

653,372

59,10557,076

796,482

710,448

1,802,163

1,691,430

14,322,345

14,341,431

21,286,420

23,563,951

1,386,410

2,800,798

2,325,000

2,515,000

2,330,436

2,632,767

157,942

162,183

50,57038,5042,130,611

2,717,291

8,380,971

10,866,545

70,00060,0003,559,741

3,107,948

1,382,781

1,406,261

178,256

179,381

331,431361,418

248,251

471,866

5,770,462

5,586,875

14,151,433

16,453,421

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:-5-(Thousands of Yen)

As of March 31

As of December 31FY2011

FY2012

Net Assets:
Shareholders' Equity:
Capital stock
Retained earnings
Treasury stock
Total Shareholders' Equity:

14,041,834

14,041,834(5,377,499)(5,429,608)(1,610,767)(1,610,815)

7,053,567

7,001,409

52,77255,209Valuation and translation adjustments:
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total Valuation and translation adjustments:

Minority Interests:
Total Net Assets:
Total Liabilities and Net Assets:-6-－

25,18552,77280,39428,64728,725

7,134,986

7,110,530

21,286,42023,563,951

(2) Consolidated Quarterly Statement of Income and Comprehensive Income(Consolidated Quarterly Statement of Income)(Thousands of Yen)
Third quarter
from April 1 to December 31
FY2011

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income:Interest income
Dividends income
Land and house rent received
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income:Gain on sales of noncurrent assets
Total extraordinary income
Extraordinary loss:
Loss on retirement of non-current assets
Loss on cancellation of leasehold contracts
Impairment loss
Total extraordinary loss
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income(loss) before minority interests
Minority interests in income (loss)
Net income (loss)-7-

FY2012

23,395,785

27,402,194

15,355,973

18,653,777

8,039,811

8,748,417

7,568,234

8,582,261

471,577

166,156

4,651

4,537

11,411

11,53050,65751,053

26,886

34,77593,606

101,897

128,642

123,447722

46,0738,255

14,291

137,620

183,813427,562

84,240

3,715

2,899

3,715

2,899

8,113

631

1,458

－－
9,571

18,657
19,289421,706

67,851

159,507

181,366

214,254

12,145

373,762

193,51247,944(125,660)

(446)

78

48,391(125,739)

（Consolidated Quarterly Comprehensive Income）(Thousands of Yen)
Third quarter
from April 1 to Decemebr 31
FY2012FY2011

Income (loss) before minority interests
Other comprehensive income
Share of other comprehensive income of associates accounted forusing equity method
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to parent company
Comprehensive income attributable to minority interests-8-47,944(125,660)

11,174

2,437－

21,106

11,17423,544

59,119(102,116)

59,566(102,195)

(446)

78

(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) Note regarding significant changes in the amount of shareholders’ equity
There is no significant change.

(5) Segment Information
Ⅰ. Prior nine-month period (From April 1, 2011 to December 31, 2011)(Thousands of Yen)
Segments

HSESERD

Elimination

Total

Consolidated

or Group
Net Sales:
12,677,461

2,047,483

8,670,840

23,395,785-

23,395,785

and transfer accounts. . . . . . . . . . . . . .

------

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

12,677,461

2,047,483

8,670,840

23,395,785-

23,395,785

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

1,908,177(262)

162,043

2,069,959(1,598,381)

471,577(1)Sales to customers . . . . . . . . . . . . . . .
(2)Internal sales among segments

Ⅱ. Consolidated fiscal year (From April 1, 2012 to December 31, 2012)(Thousands of Yen)
Segments

HSES

ERD

Elimination

Total

Consolidated

or Group
Net Sales:
14,048,243

2,271,788

11,082,162

27,402,194-

27,402,194

and transfer accounts. . . . . . . . . . . . . .

------

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

14,048,243

2,271,788

11,082,162

27,402,194-27,402,194

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

930,467

49,654927,178

1,907,301(1,741,144)

166,156(1)Sales to customers . . . . . . . . . . . . . . .
(2)Internal sales among segments-9-4. Supplemental Information
Net Sales by Division(Thousands of Yen)

Third quarter
from April 1 to Decemebr 31
FY2011

Changes

FY2012

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

3,861,421

8,966,822

2,953,933

1,966,882(987,050)

1,813,448

914,983(898,465)

1,392,635

546,839(845,796)

2,656,022

1,652,715(1,003,306)

Home Sanitation Division Total:

12,677,461

14,048,243

1,370,781

338,550

485,661

147,111644,111567,467(76,643)

285,141

228,211(56,929)

310,727

547,384

236,656

468,952

443,063(25,889)

Establishment Sanitation Division Total:

2,047,483

2,271,788

224,304

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

4,743,955

6,637,588

1,893,633

1,229,309

1,157,294(72,014)

1,635,065

2,325,456

690,390585,665493,728(91,937)

476,844468,094(8,749)8,670,840

11,082,162

2,411,322

Total Net Sales:

23,395,785

27,402,194

4,006,409

Anti-rust equipment installation
Repair of building water-works
Waterproofing of building
Solar photovoltaic power generation system
Other-10-

5,105,400