Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

November 14, 2022

Consolidated Financial Results
for the Six Months Ended September 30, 2022
(Under Japanese GAAP)
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

SANIX INCORPORATEDTokyo Stock Exchange / Fukuoka Stock Exchange
4651
https://sanix.jp/lang_en/
Hiroshi Munemasa, President and Representative Director
Hiroshi Soga, Executive officer, Deputy General manager of Corporate Division,
General manager of Corporate Planning Division, Management & Planning Division
Telephone:+81-92-284-5072
Scheduled date to file quarterly securities report:
November 14, 2022
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
Yes (for Institutional investor)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the Six months ended September 30, 2022 (from April 1,
2022 to September 30, 2022)(1) Consolidated operating results (cumulative)
Net sales
Six months ended(Percentages indicate year-on-year changes.)

Operating Income

Millions of yen%

Millions of yen

Profit attributable toowners of parent

Ordinary Income%

Millions of yen%

Millions of yen

September 30,
22,649
(2.1)
746
26.6
611
24.6
2022
September 30,
23,145(3.4)
589(64.6)
490(68.6)
2021
Note: Comprehensive income For the Six months ended September 30, 2022: ¥487 million[232.9%]For the Six months ended September 30, 2021: ¥146 million[(89.7)%]
Basic earnings
per share
Six months ended

442

235.0

132

(90.6)

Diluted earnings
per share
Yen

September 30,
2022
September 30,
2021

%

Yen

9.26

-

2.76

-

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

September 30,
2022

34,208

5,214

15.2

108.63

March 31, 2022

34,953

4,732

13.5

98.52

Reference: Equity
As of September 30, 2022:
As of March 31, 2022:¥5,193 million¥4,709 million%

Net assets
per shareYen

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarterend

Yen

Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023

Third quarter-end

Yen

0.00

0.00

0.00

0.00

Fiscal year-end

Yen

Fiscal year ending
March 31, 2023
(Forecast)

Yen

Total
Yen

0.00

0.00

0.00

0.00

0.00

0.00

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated financial forecasts for the fiscal year ended March 31, 2023(from April 1, 2022 toMarch 31, 2023)
Net sales

Full Year

Operating Income

Ordinary Income

Profit attributableto owners ofparentMillions ofYenMillions ofYenMillions ofYen%Millions ofYen

46,568

(8.6)

1,528

%

-

1,271

%

-

1,065

Note
1.Revision from the most recently announced forecast of consolidated business results: Yes%-

Basic earnings
per share
Yen

22.30

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in
the change in scope of consolidation): None
Newly included: - companies (Company name)
Excluded:- companies (Company name)(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial
statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
Note :For details, please see 2. Quarterly Consolidated Financial Statements and Main Notes to theStatements (4) Notes on Consolidated Financial Statements (Changes in Accounting Policies) on page
10 of the attachment.
(4) Number of issued shares (common shares)
(i)

(ii)

Total number of issued shares at the end of the period (including treasury shares)
As of September 30,2022

48,919,396 shares

As of March 31,2022

48,919,396 shares

Number of treasury shares at the end of the period
As of September 30,2022

1,114,983 shares

As of March 31,2022

1,114,838 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the
fiscal year)
Six months ended September 30, 2022

47,804,462 shares

Six months ended September 30, 2021

47,804,647 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
The forward-looking statements, including results forecasts, included in this material are based on the information that
the Company has obtained and certain assumptions that the Company considers reasonable. Actual results may differ
significantly for a range of factors. The assumptions for the results forecasts and cautions in the use of the forecasts
are described in 1. Qualitative Information for the Six months ended September 30, 2022, (3) Information on the Future
Outlook, Including the Forecasts of Consolidated Business Results on page 4 of the Attachment

Index of the attachment
1. Qualitative Information for the Six months ended September 30, 2022 ...............
(1) Information of Consolidated Business Results .............................................................................
(2) Information of Consolidated Financial Position ............................................................................

225(3) Information on the Future Outlook,
Including the Forecasts of Consolidated Business Results ........................................................

6

2. Quarterly Consolidated Financial Statements and the Primary Notes for the Sixmonths ended September 30, 2022 ...........................................................................................

7(1) Quarterly Consolidated Balance Sheets ........................................................................................

7(2) Quarterly Consolidated Statements of Income and Comprehensive Income ..........................

9

Quarterly Consolidated Statements of Income .............................................................................

9

Quarterly Consolidated Statements of Comprehensive Income ................................................

10(3) Quarterly Consolidated Statements of Cash Flows .....................................................................

11(4) Notes regarding the Quarterly Consolidated Financial Statements ..........................................

12

Notes on matters related to going concern assumption ........................................................

12

Notes to Remarkable Changes in the amount of Shareholders’ Equity ..............................

12

Changes in accounting policies ................................................................................................

12

Additional information ...............................................................................................................

12

Segment Information, etc. ........................................................................................................

13

3. Others ....................................................................................................................................................

15(1) Important matters related to going concern assumption ........................................................

15(2) Consolidated Net Sales by Division .......................................................................................

16

2

1. Qualitative Information for the Six months ended September 30, 2022
(1) Information of Consolidated Business Results
During the first six months of the fiscal year under review (April 1 to September 30, 2022), theoutlook for the Japanese economy, which had been stagnant due to the COVID-19 pandemic,
remained uncertain due to steep rises in the prices of resources partly as a result of Russia's
military invasion of Ukraine and the depreciation of yen despite signs of recovery beginning toappear in economic activities. In this situation, SANIX INCORPORATED and its consolidated
subsidiaries (hereinafter the “Group”) continued their respective operations, while ensuringthat COVID-19 preventive measures were taken and working to strengthen and expand thefoundation for each business.
The Group implemented a reorganization on June 1, 2022 to ensure the growth of its
businesses and facilitate growth through the pursuit of synergy between the businesses,
while responding flexibly to the rapidly changing market environment with the goal of creating
a comfortable environment for the next generation as stated in its corporate philosophy.
Consequently, the classification of reportable segments changed in the first quarter. Details
are provided in the section, (4) Notes regarding the Quarterly Consolidated Financial
Statements (Segment Information, etc.), under 2.
Accordingly, in the year-on-year comparisons below, the figures for the same period of theprevious year have been restated to reflect the new segment classification in the comparative
analysis. However, the year-on-year comparison of the new Solar Engineering (SE) Division,
operating the business of photovoltaic power generation systems for detached houses, and
the Photovoltaic (PV) Division, operating the business of photovoltaic power generation
systems for corporations, is omitted due to the practical difficulty of recalculating figures fromthe same period of the previous year.
Regarding net sales for the first six months of the fiscal year under review, the HS Division inparticular experienced temporary restrictions on face-to-face sales activities associated withthe beginning of the seventh wave of COVID-19 infections, which from July 2022 saw thelargest number of infections ever recorded. The PPS Division has stopped accepting new
applications for power supply and demand contracts and shifted part of its retail contracts forelectric power to distributor agreements to eliminate the risk of price volatility in electricity
procurement. As a result, the Group's consolidated net sales for the first half under review
came to ¥22,649 million (down 2.1% year on year).
The Group's consolidated profit included operating profit of ¥746 million (up by 26.6% year onyear), ordinary profit of ¥611 million (up by 24.6% year on year), and profit attributable toowners of parent of ¥442 million (up by 235.0% year on year) thanks in part to a reboundfrom the decrease in sales due to the statutory inspections conducted and the repair
expenses incurred at Tomakomai power plant in the previous year.

3a. HS (Home Sanitation) Division
Home Sanitation (HS) Division has been working to expand the business through the openingof a new sales office while continuing to take thorough measures to prevent COVID-19
infections. However, as a result of the impact of the seventh wave of the COVID-19 infections,net sales decreased 5.6% year on year to ¥6,126 million.
Operating profit for the segment came to ¥883 million (down 36.6% year on year) due to anincrease in personnel and other fixed expenses associated with addition of employees
principally for new sales offices in addition to the decrease in sales.
b. ES (Establishment Sanitation) Division
The ES Division improved relationships with building and condominium owners and partnercompanies, including management companies, by expanding business through an active
increase of personnel and the opening of a new sales office. Net sales for building water
proofing work rose 106.8% year on year and net sales for water supply and drainage repairs
increased 11.7% year on year. However, net sales for the installation of the Company's main
anti-rust equipment (brand name: Daelman Shock) decreased 29.5% year on year. As aresult, net sales in this segment decreased to ¥1,190 million (down 5.9% year on year).
Operating profit for the segment came to ¥8 million (down 92.7% year on year) due to anincrease in personnel and other fixed expenses associated with addition of employees
principally for new sales offices in addition to the decrease in sales.
c. SE (Solar Engineering) Division(division for sale of photovoltaic power for detached houses)
As a result of the reorganization in June 2022, the SE Division was launched as a new
business division focusing on the sale of photovoltaic power generation systems developed
specifically for detached houses. As a result, net sales for the segment totaled ¥791 million.
Operating result was a loss of ¥100 million largely due to expenses incurred for the launch of
the new business division.
d. PV(Photovoltaic) Division(division for sale of photovoltaic power for corporations)Through the reorganization in June 2022, the PV Division was re-established as a unit sellingphotovoltaic power generation systems developed specifically for corporations. It focused on
the construction and maintenance of photovoltaic power generation systems and otherproducts and the wholesaling of photovoltaic power equipment. As a result, net sales for thesegment totaled ¥3,408 million.
Operating result was a loss of ¥159 million due to an increase in costs caused by a rise in
prices of materials and other goods despite a decrease in SG&A expenses thanks to thereallocation of personnel with the SE Division through reorganization.

4e. PPS(Power Producer and Supplier) Division
The PPS Division has been reducing its business since the second half of the previous fiscal
year, considering that maintaining profit is difficult due to a significant rise in the cost of
procurement chiefly caused by a surge in prices in the wholesale electric power market.
Therefore, the Company stopped accepting new applications for power supply and demand
contracts and shifted a part of its retail contracts for electric power to distributor agreements.
In addition, during the second quarter of the current fiscal year (July 1, 2022-September 30,2022), the risk of price volatility in power procurement was eliminated as the Group changed
its power procurement to mainly direct procurement. As a result, net sales in this segment
decreased to ¥2,914 million (down 6.9% year on year).
Operating profit for the segment came to 133 million yen (up by 417.3% year on year),reflecting improved earnings due to the elimination of the risk of price volatility in power
procurement and the sale of surplus power procured through direct trading in the wholesale
power market, where prices are soaring.
f. ERD (Environmental Resources Development) Division
In the business of the Environmental Resources Development (ERD) Division, plastic fuelsales decreased 4.5% year on year due to a fall in the amount of waste materials priced
relatively high received at some factories. Meanwhile, landfill sales increased 14.7% year on
year and waste liquid treatment sales grew 2.7% year on year due to an increase in theacceptance volume, and power plant sales rose 11.7% year on year, rebounding from thesuspension of power generation at Tomakomai power plant in April in the previous year for
statutory inspections. As a result, net sales in this segment increased to ¥8,218 million (up0.3% year on year).
Operating profit for the segment amounted to ¥1,558 million (up 29.1% year on year) due to arebound from lower sales due to the statutory inspection of the Tomakomai power plant andthe repair expenses posted in the previous fiscal year.

5(2) Information of Consolidated Financial Positiona. Information on the status of Assets, of Liabilities, and of Net Assets
Total assets at the end of the first half under review amounted to ¥34,208 million, a decreaseof ¥745 million from the end of the previous fiscal year. This was caused chiefly by a decreasein notes and accounts receivable – trade of ¥2,310 million despite a rise in cash and depositsof ¥1,615 million.
Total liabilities stood at ¥28,994 million, a decrease of ¥1,227 million from the end of theprevious consolidated fiscal year. The main factors were a decrease of ¥5,640 million in
short-term loans payable and a decrease of ¥465 million in notes and accounts payable-trade,
despite increases of ¥3,856 million in long-term loans payable and ¥1,002 million in current
portion of long-term loans payable, due to the refinancing of short-term loans payable into
long-term loans payable.
Net assets totaled ¥5,214 million, a rise of ¥482 million from the end of the previous
consolidated fiscal year. The key contributions to the increase included the posting of profit
attributable to owners of parent of ¥442 million.
Consequently, the capital-to-asset ratio came to 15.2% at the end of the first half under review,compared with 13.5% at the end of the previous fiscal year.

b. Information on Consolidated Cash Flows
Cash and cash equivalents at the end of the first half under review totaled ¥5,004 million, an
increase of ¥1,761 million from the end of the previous fiscal year, attributable to net cash
provided by operating activities amounting to ¥3,237 million, despite outlays of ¥445 million in
investing activities and ¥1,046 million in financing activities.
The conditions of respective cash flows in the first half under review and their main causes
are as described below.
(Net Cash Provided by Operating Activities)
Net cash provided by operating activities was ¥3,237 million (compared with net cash of ¥238
million such activities provided in the same period of the previous fiscal year). The main
factors were a ¥2,310 million decrease in notes and accounts receivable-trade and ¥880
million in depreciation and amortization as non-cash expenditure items.
(Net Cash Provided by Investment Activities)
Net cash used in investing activities was ¥445 million (compared with net cash of ¥1,161
million used in such activities in the same period of the previous fiscal year). The result
primarily reflected the payment of ¥560 million for the purchase of property, plant andequipment.
(Net Cash Provided by Financing Activities)
Net cash used in financing activities was ¥1,046 million (compared with cash provided of¥650 million one year earlier). The main factors were a net decrease in short-term loans

6payable of ¥5,640 million and repayment of installment obligations of ¥303 million, while there
were proceeds from long-term loans payable of ¥5,053 million due to refinancing.

(3) Information on the Future Outlook, Including the Forecasts of Consolidated BusinessResults
The full-year forecast for net sales is lower than the previous forecast due to the longer
response period for the PV Division's grid interconnection and the longer delivery times forelectrical components, etc. due to the disruption of global supply chain, in addition to thelower-than-expected net sales in the first half of the current fiscal year.
As for profits, operating profit, ordinary profit, and profit attributable to owners of parent are
expected to fall short of initial forecasts due to the impact of the downward swing in the salesof the PV Division and an expected increase in repair costs as a result of a review of thedetails of Tomakomai power plant inspections to ensure stable operation.
For details, please see the Notice on Differences from Business Results Forecasts for the Six
Months Ended September 30, 2022 and Revisions to the Full-Year Business Results
Forecasts released today (November 14, 2022).

7

2. Quarterly Consolidated Financial Statements and the Primary Notes for the Sixmonths ended September 30, 2022
(1) Quarterly Consolidated Balance Sheets(In Millions of Yen)

As of

As of

March 31,2022

Sep. 30,2022

Cash and deposits

3,914

5,530

Notes and accounts receivable-trade

6,593

4,283

81

129

Assets :Current Assets :Merchandise and finished goods
Work in process-construction

201

340

Raw materials and supplies

2,462

3,005

Other

1,453

1,186

Allowance for doubtful accounts

(154)

(174)

14,551

14,301

Buildings and structures (net of depreciation)

2,818

2,609

Machinery, Equipment and Vehicles(net of depreciation)

4,235

4,277

Land

8,314

8,306

Other (net of depreciation)

1,013

1,070

Total Property, Plant and Equipment

16,382

16,263701

629

Total Current Assets
Fixed Assets:
Property, Plant and Equipment :Intangible Fixed Assets :Investments and Other Assets :

3,318

3,014

Total Fixed Assets

20,401

19,907

34,95334,208

Total Assets(In Millions of Yen)

As of

As of

March 31,2022

Sep. 30,2022

Notes and accounts payable-trade

3,798

3,332

Short-term loans payable

10,151

4,511

386

1,388

Liabilities :Current Liabilities :Current portion of long-term loans payable
Current portion of bonds payable

200

200

2,964

2,722

Accrued income taxes

307

274

Provision for bonuses

273

258

8

9

Accounts payable

Allowance for resource-recycling expenses
Other

3,627

4057

Total Current Liabilities

21,71816,755

700

600

2,297

6,154

4

4

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

732

789

Liability related to retirement benefits

1,963

2,013

Other

2,805

2,676

Total Non-Current Liabilities

8,503

12,238

8
Total Liabilities

30,221

28,994

14,041Net Assets :Shareholders’ Equity :Capital stock1

14,041－Retained earnings(7,995)(7,555)

Treasury stock(1,481)(1,481)

Total Shareholders’ Equity

4,566

5,004

Capital surplus

Accumulated other comprehensive income :Valuation difference on available-for-sale securities

43

44

Foreign currency translation adjustment

100

144

Adjustment for retirement benefits (cumulative)

(0)

(0)

Total Accumulated other comprehensive income

142

188

Non-controlling Interests

22

21

Total Net Assets

4,732

5,214

Total Liabilities and Assets

34,95334,2089(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(In Millions of Yen)

Six months
From April 1 to September 30
FY2021

FY2022

Net sales

23,14522,649

Cost of sales

15,005

14,581Gross profit

8,139

8,068

Selling, general and administrative expenses

7,550

7,322

589

746

7

7

Operating income
Non-operating income :Interest income
Dividends income

1

1Land and house rent revenue

31

31

Other

24

46

Total non-operating income

6587Interest expenses

117

154

Other

46

67

Total non-operating expenses

Non-operating expenses :

164

221

Ordinary income (loss)

490

611

Income (loss) before income taxes and minority interests

490

611

Income taxes-current

278

123

Income taxes-deferred

81

46

Total income taxes

359

170

Net Income (loss)

131

441

Net Income (loss) belonging to the non-controlling shareholders(0)

Net income belonging to the shareholders of the parent company

132

(1)
442

10

(Quarterly Consolidated Statements of Comprehensive Income)(In Millions of Yen)

Six months
From April 1 to September 30
FY2021

FY2022Net Income

131

441

Other comprehensive income :Valuation difference on available-for-sale securities(7)1

Foreign currency translation adjustment

1944

Retirement benefit adjustment

20

Total other comprehensive income

14

45

146

487

Comprehensive income belonging to the shareholders of the parent
company147

488

Comprehensive income belonging to non-controlling shareholders

(0)

(1)

Comprehensive net income(Breakdown)

11(3) Quarterly Consolidated Statements of Cash Flows(In Millions of Yen)

Six months
From April 1 to September 30
FY2021

FY2022Net Cash Provided by (Used in) Operating Activities
Income before income taxes and minority interests

490

Depreciation and amortization

630

880

Increase(Decrease) in Provision for bonuses

17

(15)

Increase (Decrease) in allowance for disposal site closing expenses

20

57

Increase (decrease) in provision for retirement benefits

46

50

Increase (decrease) in allowance for doubtful accounts

(0)

(89)

Interest income and dividends income

(9)

(8)

Interest expenses

117

154

Increase (decrease) in notes and accounts receivable-trade

(6)

2,310

Increase (decrease) in inventories

76

(711)

Increase (decrease) in other current assets

611

(62)

213

(1,375)(499)

Accounts payable

399

(311)

Increase (decrease) in accrued consumption taxes

(233)

323

Increase (decrease) in other current liabilities

168

96

Other

57

428

Subtotal

336

3,489

8

8

Interest expenses paid

(116)

(157)

Income taxes paid

(79)

(149)

Income taxes refund

89

46

Net cash provided by (used in) operating activities

238

3,237

Payments into time deposits

(319)

(435)

Proceeds from withdrawal of time deposits

472

610

Purchase of property, plant and equipment(1,243)

(560)

7

0

(86)

(42)

8

(18)

(1,161)

(445)

（412)

(5,640)

Proceeds from long-term loans payable

297

5,053

Repayment of long-term loans payable(116)

Proceeds from issuance of bonds

1,000

(193)
－

Redemption of bonds

(500)

(100)

Increase (decrease) in notes and accounts payable-trade

Interest and dividends income received

Net Cash Provided by (Used in) Investing Activities

Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Other
Net cash provided by (used in) investing activities

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable

Proceeds from sale and leaseback transactions
Repayments of finance lease obligations

82

50

(242)

(258)

Proceeds from sale and installment back

748

357

Repayments of installment payables

(187)

(303)

Other

(21)

(11)

Net cash provided by (used in) financing activities

650(1,046)

8

15

(264)

1,761

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

12Cash and cash equivalents, beginning of the period

4,760

3,243

Cash and cash equivalents, end of the quarter

4,496

5,004

(4) Notes regarding the Quarterly Consolidated Financial Statements(Notes to the Assumption of a Going Concern): None(Notes to Remarkable Changes in the amount of Shareholders’ Equity): None(Changes in accounting policies)(Adoption of the Accounting Standard for Revenue Recognition）
The Company began applying the Implementation Guidance on Accounting Standard for Fair
Value Measurement (ASBJ Implementation Guidance No. 31 issued on June 17, 2021,
hereinafter the “Fair Value Measurement Accounting Standard Implementation Guidance”) at
the beginning of the first quarter under review. Accordingly, the Company will apply the new
accounting policies prescribed in the Fair Value Measurement Accounting Standard
Implementation Guidance in the future in accordance with the transitional handling stipulated
in Paragraph 27-2 of the Fair Value Measurement Accounting Standard Implementation
Guidance. The application has no effect on quarterly consolidated financial statements.
(Additional information)(Application of the Practical Solution on the Accounting and Disclosure Under theGroup Tax Sharing System）
The Company and some of its consolidated subsidiaries in Japan made a shift from theconsolidated taxation system to the group tax sharing system in the first quarter of the fiscal
year under review. Consequently, with respect to accounting processing and disclosures forincome tax, local corporate income tax and tax effect accounting, the Company started toapply the Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing
System (ASBJ Practical Issues Task Force No. 42 issued on August 12, 2021, hereinafter"PITF No. 42"). In addition, based on Paragraph 32-(1) of PITF No. 42, the Company
considers that there will be no impact of changes in its accounting policy resulting from theapplication of PITF No. 42.

13(Segment Information, etc.)
Ⅰ. Six months ended September 30,2021 (From April 1, 2021 to September 30, 2021)
1. Information concerning the Amount of Net Sales and Operating Income (loss) by Segment(In Millions of Yen)
Segments
HS

ES

SE

6,487

1,264

-

PV

PPS

ERD

Total

Others(note 1)

3,828

3,114

8,194

22,890255

Eliminati
on or
Group
(note 2)

Consolidated(note 3)23,145

Total

23,145-

Sales:
Sales tocustomers
Internal sales
among segments
and transfer
accounts
Total
Operatingincome(loss)

-

-

-

-

17

-

17

-

17

(17)

-

6,487

1,264

-

3,828

3,131

8,194

22,907

255

23,162(17)

23,145

1,394

121

-

(294)

25

1,207

2,454

(150)

2,304

(1,714)589(note 1)The “Other” segment is a retail business selling photovoltaic power generation and electric power as a set todetached houses through alliances with other companies.
(note 2)
Negative ¥1,714 million for adjustments of Operating income (loss) represents corporate expenses not allocatedto reportable segments. Corporate expenses are mainly general and administrative expenses note attributable toreportable segments.
(note 3)Operating income is adjusted to operating loss of quarterly consolidated statements of income.

Ⅱ. Six months ended September 30,2022 (From April 1, 2022 to September 30, 2022)
1. Information concerning the Amount of Net Sales and Operating Income (loss) by Segment(In Millions of Yen)
Segments
OthersTotal

Eliminati
on or
Group
(note 2)

Consolidated(note 3)

HS

ES

SE

PV

PPS

ERD

Total

6,126

1,190

791

3,408

2,914

8,218

22,649-22,649-22,649

-

-

-

-

-

-

-

-

-

-

-

6,126

1,190

791

3,408

2,914

8,218

22,649-22,649-22,649

883

8

(100)

(159)

133

1,558

2,325

-

2,325

(1,579)746

Sales:
Sales tocustomers
Internal sales
among segments
and transfer
accounts
Total
Operatingincome(loss)(note 1)
Negative ¥1,579 million for adjustments of Operating income (loss) represents corporate expenses not allocatedto reportable segments. Corporate expenses are mainly general and administrative expenses note attributable toreportable segments.

14(note 2)
Operating income is adjusted to operating loss of quarterly consolidated statements of income.

2. Information on changes in reportable segments
The Group has implemented a reorganization with the goal of facilitating growth through the pursuit ofsynergy between the businesses. As a result, starting from the second quarter of the fiscal year underreview, the reportable segments are as follows: the HS Division, ES Division, SE Division, PV Division,
PPS Division, and ERD Division. The segment information for the second quarter of the previous fiscal
year presented in this report has been prepared based on the reportable segments after this change.
However, it is practically difficult to prepare a report for the photovoltaic power generation systembusiness for detached houses that was included in the former SE Division by dating back the necessaryfinancial information and including it in the new SE Division. Therefore, it is included in the PV Division.

15

3. Others(1) Important matters related to going concern assumption
In the previous fiscal year, the Group posted a significant operating loss, ordinary loss, andloss attributable to owners of parent due to a substantial increase in the cost of procuring
electric power in the PPS business, and there were events or circumstances that may causesignificant doubt about the Group's going concern assumption.
To resolve this situation, the Group changed to a policy of establishing supply agreements
within the range of direct procurement in the previous fiscal year, stopped accepting new
applications for electric power supply and demand agreements, and ended, rather thanrenewing, direct wholesale agreements unlikely to turn a profit in March 2022. In the first six
months under review, the Group completed the shift of unprofitable projects among its retailelectric power agreements to agreements for distribution to other companies and switchedfrom market procurement to direct procurement for power procurement, thereby eliminating
the risk of price volatility.
Consequently, the Group posted operating profit, ordinary profit, and profit attributable toowners of parent for the first half of the fiscal year under review.
However, profit remains lower than the conventional level chiefly due to resource prices
remaining high, and there remains a certain amount of uncertainty regarding the financial
outlook. Therefore, the Group continues to recognize the presence of events orcircumstances that may cause significant doubt about the going concern assumption in thesecond quarter under review.
In terms of funding, we have explained the situation to the financial institutions and received
their understanding of financial support. We have already procured the necessary funds andhave obtained their agreement not to exercise the right to claim for forfeiture of the benefit oftime with regard to the violation of financial covenants that have arisen in some of our loans.
Based on the above, the Group believes that there is no material uncertainty regarding thegoing concern assumption.

16(2) Consolidated Net Sales by Division（In Million of Yen）
From April 1 to September 30
Comparison
Unit
FY2021

FY2022Item
QTY

AmountQTY

AmountQTY

Amount*1,000
tsubo

318

1,992

319

2,099

1

107

－

－

1,668

－

1,514

－

-154

House

2,516

1,045

1,999

858

-517

-186

－

－

1,781

－

1,653

－

-128

H ome Sa ni ta ti on D i v i s i on Tota l

－

－

6,487

－

6,126

－

-361

Anti-rust equipment installation

Piece

624

648

397

456

-227

-191

Water supply and drainage repair

－

－

326

－

364

－

38

Waterproofing and renovation ofbuildings

－

－

82

－

171

－

88

Others

－

－

207

－

197

－

-9

－

－

1,264

－

1,190

－

-74

Sales and installation of PV system

－

－

－

－

791

－

－

Sol a r Eng i neeri ng D i v i s i on Tota l

－

－

－

－

791

－

－

Sales and installation of PV system

－

－

3,753

－

3,286

－

－

Wholesale of PV system

－

－

34

－

74

－

－

Others

－

－

40

－

47

－

－

－

－

3,828

－

3,408

－

－

－

－

3,131

－

2,914

－

-217

－

－

3,131

－

2,914

－

-217

Plastic fuelｔ

138,2445,106

135,908

4,875-2,336-230

Power Plant

－

－

1,409

－

1,574

－

164

Waste liquid treatmentｔ49,622

1,010

50,954

1,037

1,332

27

Landfill

－

－

425

－

488

－

62

OthersTermite control construction
Under-floor/attic ventilation system
Foundation Repair/
Home Reinforcement System
OthersEs ta bl i s hment Sa ni ta ti on
D i v i s i on Tota l

Phtov ol ta i c D i v i s i on Tota lSales of Electricity
Pow er Producer a nd Suppl i er
D i v i s i on Tota l

－

－

241

－

241

－

0

Env i ronmenta l R es ources
D ev el opment D i v i s i on Tota l

－

－

8,194

－

8,218

－

23

Others

－

－

255

－

－

－

-255

Adjustment of intersegment sales

－

－

(17)

－

－

－

17

Total Net Sales－－

23,145－22,649

－

-495

Note
1.Descriptions are omitted for items that are handled in such a wide range that it is difficult to grasp their quantity.
2.1,000 tsubo is approximately 3,305.785 ㎡.
3. The Group reclassified its reportable segments in the second quarter under review, and year-on-yearcomparisons of the SE Division and the PV Division are omitted due to the practical difficulty of recalculating
figures for the same period of the previous year.