dNote: 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.

February 14, 2024

Consolidated Financial Results
for the Nine Months Ended December 31, 2023
(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, Corporate Planning Headquarters, Corporate Planning Department
Executive officer
Telephone:+81-92-284-5072
Scheduled date to file quarterly securities report:
February 14, 2024
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 Nine months ended December 31, 2023(from April 1,
2023 to December 31, 2023)(1) Consolidated operating results (cumulative)
Net sales
Nine 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

December 31,
34,275(0.2)
2,419 117.6
2,242 139.6
1,806
2023
December 31,
34,345(5.8)
1,111 514.0
935
649
2022
Note: Comprehensive income For the Nine months ended December 31, 2023:¥1,861 million [185.1%]
For the Nine months ended December 31, 2022:¥652 million[-%]
Basic earnings
per share
Nine months ended
December 31,
2023
December 31,
2022

%

178.2
-

Diluted earnings
per share
Yen

Yen

37.80

-

13.58

-

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

December 31,
2023

35,167

7,929

22.5

165.46

March 31, 2023

33,586

6,068

18.0

126.51

Reference: Equity
As of December 31, 2023:
As of March 31, 2023:¥7,909 million¥6,047 million%

Net assets
per shareYen

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarterend

Yen

Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024

Third quarter-end

Yen

Fiscal year-end

Yen

0.00

0.00

0.00

0.00

0.00

0.00

Yen

Fiscal year ending
March 31, 2024
(Forecast)

Total
Yen

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, 2024(from April 1, 2023 toMarch 31, 2024)
Net sales

Full Year

Operating Income

Ordinary Income

Profit attributableto owners ofparentMillions ofYenMillions ofYenMillions ofYen%Millions ofYen

47,965

3.6

3,231

%

81.0

3,014

%

94.2

2,495

Note
1.Revision from the most recently announced forecast of consolidated business results: None

%

87.3

Basic earnings
per share
Yen

52.20

* 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 (3) 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 December 31,2023

48,919,396 shares

As of March 31,2023

48,919,396 shares

Number of treasury shares at the end of the period
As of December 31,2023

1,115,133 shares

As of March 31,2023

1,114,983 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the
fiscal year)
Nine months ended December 31, 2023

47,804,383 shares

Nine months ended December 31, 2022

47,804,447 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 Nine months ended December 31, 2023, (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 Nine months ended December 31, 2023 ...............
(1) Information of Consolidated Business Results .............................................................................
(2) Information of Consolidated Financial Position ............................................................................

224(3) Information on the Future Outlook,
Including the Forecasts of Consolidated Business Results ........................................................

4

2. Quarterly Consolidated Financial Statements and the Primary Notes for theNine months ended December 31, 2023 ..................................................................................

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

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

7

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

7

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

8(3) Notes regarding the Quarterly Consolidated Financial Statements ..........................................

9Notes to the Assumption of a Going Concern ..................................................................

9Notes to Remarkable Changes in the amount of Shareholders’ Equity ..............................

9

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

10

3. Others ....................................................................................................................................................
(1) Consolidated Net Sales by Division .......................................................................................

11

2

1. Qualitative Information for the Nine months ended December 31, 2023
(1) Information of Consolidated Business Results
During the first nine months of the fiscal year under review (April 1 to December 31, 2023), the Japanese
economy continued to recover moderately, partly reflecting a recovery in inbound tourism-related demandfollowing the recategorization of COVID-19 as a class 5 infectious disease. However, the outlook still
remained uncertain, largely reflecting surging resource and energy prices and rising raw materials prices
linked to a weaker yen, under the unstable international situation. In this social environment, guided by its
corporate philosophy, “A comfortable environment for the next generation," the Group facilitated theresolution of social issues through its businesses and continued to work to help establish a sustainable
society in the residential environment, energy and resource circulation domains.
Additionally, the Group developed its Medium-Term Management Plan (FY2023 to FY2025). Based on thisplan, it will begin to actively implement growth investments to enable future growth by establishing quotas fora strategic investment framework while simultaneously securing a stable financial base by enhancing its
earning capacity through the steady growth of existing businesses. The Group aims to accelerate its future
growth by strategically investing and continuing to expand its strategic investment framework. (Details areprovided at our official website. https://sanix.jp/lang_en/e02/pdf/ir2023_5e-c.pdf) In terms of net sales, ERD
Division sales increased (up 10.8% year on year) reflecting an increase in this year's electricity sales contract
price in power generation sales. However, PPS(Power Producer and Supplier) Division sales decreased(down 54.6% year on year) due to the downsizing of the business to avoid risks linked to a rise in the cost of
procuring electricity. As a result, the Group's consolidated net sales for the first nine months under review
came to ¥34,275 million (down 0.2% year on year).
As for profits, in the ERD Division, profits improved due to an increase in the electricity sales contract price of
the Tomakomai power plant. As a result, the Group's consolidated profit included operating profit of ¥2,419
million (up 117.6% year on year), ordinary profit of ¥2,242 million (up 139.6% year on year), and profit
attributable to owners of parent of ¥1,806 million (up 178.2% year on year).
The consolidated results of the individual segment for the first nine months under review were as follows:<Residential Environment Area>
a. HS (Home Sanitation) Division
The HS Division continued to strengthen its sales policy with a focus on the development of new customers
as in the previous year while also accelerating initiatives with an eye toward the enhancement of its customer
foundation. As a result, despite a 3.7% decrease in foundation repairs/home reinforcement systems, termite
eradication services increased 8.2% year on year and under-floor/roof ventilation systems increased 5.1%
year on year, which resulted in an increase of 3.1% year on year of net sales to ¥8,859 million.
Operating profit came to ¥1,277 million (up 33.6% year on year) due to a year-on-year increase in sales, aswell as the effects of reduced subcontracting construction costs and fixed costs such as selling, general andadministrative expenses.

b. ES (Establishment Sanitation) Division
The ES Division has been strengthening its relationships with owners of buildings and condominiums andaffiliates such as property management companies. Net sales in this segment came to ¥2,007 million (up9.6% year on year), reflecting a year-on-year increase of 43.8% in building water supply and drainage repair
work, more than offsetting year-on-year decreases of 5.2% in the installation of the Company's main anti-rustproduct (brand name: Daelman Shock) and 3.2% in building waterproofing repair work.
Operating profit decreased 28.2% year on year to ¥34 million despite an increase in sales from the same

3
period of the previous fiscal year. This was due to product lines consisting of products with high cost ratios.

c. SE (Solar Engineering) Division
The SE Division, a business established in the previous fiscal year, focused on the sale of photovoltaic power
generation systems developed specifically for detached houses, among other products. Although sales ofstorage batteries and replacement of power conditioners for existing photovoltaic power generation systems
increased from the same period of the previous fiscal year, the sales level temporarily declined due to theallocation of personnel to the development of business partners. As a result, net sales in this segment
decreased to ¥948 million (down 26.1% year on year).
Operating loss totaled ¥67 million (operating loss of ¥90 million in the same period of the previous fiscal year),reflecting efforts to improve profitability despite the decline in sales year on year.

<Energy Area>d. PV(Photovoltaic) Division
The PV Division focused mainly on the sale and construction of self-consumption type photovoltaic power
generation systems for corporate use, the provision of the PPA services to local governments and the sale ofphotovoltaic power generation systems with land, as well as replacement of devices and maintenance forexisting photovoltaic power generation systems. As a result, net sales for the segment totaled ¥6,516 million(up 14.4% year on year).
Operating loss came to ¥67 million (operating loss of ¥121 million in the same period of the previous fiscal
year) despite sales increasing year on year. This was partly attributable to the impact of increases in theprices of materials in particular.

e. PPS(Power Producer and Supplier) Division
The PPS Division has been reducing its business since last year, considering that maintaining profit is difficult
due to a rise in the cost of electricity procurement. As a result, net sales in this segment decreased to ¥1,964
million (down 54.6% year on year).
Operating profit was ¥87 million (down 63.1% year on year). This is partly due to a decrease in sales
resulting from business downsizing, in addition to a calming of the wholesale power market, although in thesame period of the previous year we were able to earn a margin by selling surplus electricity procured
through direct transactions in the wholesale power market, where the price was higher than the direct
procurement price.

<Resource Cirulation Area>
f. ERD (Environmental Resources Development) Division
In the ERD Division, plastic fuel sales decreased 1.8% year on year, organic waste water recycling rose 1.7%
year on year, final disposal decreased 5.8％ year on year due to a decline in the amount of waste brought in,and power plant sales climbed 56.4% year on year due to a rise in the unit contract price of electricity sold by
the Tomakomai power plant. As a result, net sales in this segment increased to ¥13,978 million (up 10.8%
year on year).
Operating profit for the segment amounted to ¥3,200 million (up 36.6% year on year), reflecting improved
profitability due to the higher unit contract price of the electricity sold, offsetting the recording of repair
expenses of legally required inspection of the Tomakomai power plant.

4(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 nine months under review amounted to ¥35,167 million, an increase of¥1,581 million from the end of the previous fiscal year. Total liabilities stood at ¥27,238 million, a decrease of
279 million from the end of the previous fiscal year. Net assets totaled ¥7,929 million, a rise of ¥1,861 million
from the end of the previous consolidated fiscal year. As a result, the capital adequacy ratio was 22.5%(compared with 18.0% a year earlier).
（Assets）
Current assets totaled ¥14,612 million, a rise of ¥928 million from the end of the previous consolidated fiscal
year. Main factors were increases in costs on uncompleted construction contracts of ¥480 million and ¥348
million in cash and deposits.
Non-current assets totaled ¥20,555 million, a rise of ¥652 million from the end of the previous consolidated
fiscal year. Major factors included increases of ¥633 million in other (net) in property, plant and equipmentand ¥403 million in machinery, equipment and vehicles (net) due to a rise in construction in progress,
offsetting decrease of ¥147 million in buildings and structures (net) and ¥198 million yen in investments andother assets due to a decline in deferred tax assets.
（Liabilities）
Current liabilities stood at ¥16,767 million, an increase of ¥384 million from the end of the previous fiscal year.
Primary factors included an increase of ¥1,027 million in accounts payable - other, which more than offset a
decrease of ¥334 million in notes and accounts payable - trade.
Non-current liabilities totaled ¥10,471 million at the end of the period, a decrease of ¥664 million from the endof the previous fiscal year. Key factors were a decrease of ¥1,023 million in long-term borrowings, more thanoffsetting an increase of ¥300 million in corporate bonds.
(Net assets)
Net assets totaled ¥7,929 million, a rise of ¥1,861 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¥1,806 million.

(3) Information on the Future Outlook, Including the Forecasts of Consolidated BusinessResults
Consolidated results forecasts for the fiscal year ending March 31,2024 remain unchanged from theconsolidated results forecasts announced on May 15,2023.

5

2. Quarterly Consolidated Financial Statements and the Primary Notes for the Ninemonths ended December 31, 2023
(1) Quarterly Consolidated Balance Sheets(In Millions of Yen)

As of

As of

March 31,2023

Dec. 31,2023

Cash and deposits

4,504

4,852

Notes and accounts receivable-trade

4,827

4,633

163

175

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

134

615

Raw materials and supplies

2,901

2,975

Other

1,382

1,467

Allowance for doubtful accounts

(229)

(107)

13,683

14,612

Buildings and structures (net of depreciation)

2,355

2,207

Machinery, Equipment and Vehicles(net of depreciation)

4,286

4,689

Land

8,209

8,212

Other (net of depreciation)

1,250

1,883

Total Property, Plant and Equipment

16,10016,992595

553

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

3,206

3,008

Total Fixed Assets

19,902

20,55533,58635,167

Total Assets

As of

As of

March 31,2023

Dec.31,2023

Liabilities :Current Liabilities :Notes and accounts payable-trade
Electronically recorded obligations - operating

2,463

2,128

782

567

Short-term loans payable

3,462

3,576

Current portion of long-term loans payable

1,372

1,364

200

300

Current portion of bonds payable
Accounts payable

3,296

4,324

Accrued income taxes

350

272

Provision for bonuses

263

139

Allowance for resource-recycling expenses

11

25

Other

4,178

4,067

Total Current Liabilities

16,382

16,767

Non-Current Liabilities :Bonds payable
Long-term loans payable

500

800

5,472

4,448

Provision for directors’ retirement benefits

4

4Provision for disposal site closing expenses

523

560

Liability related to retirement benefits

2,104

2,179

Other

2,531

2,478

6
Total Non-Fixed Liabilities
Total Liabilities

11,135

10,471

27,51827,238Net Assets :Shareholders’ Equity :Capital stock

14,041

14,041

Capital surplus(6,666)(4,859)Treasury stock(1,481)(1,481)

Total Shareholders’ Equity

5,893

7,700

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

72

88

Foreign currency translation adjustment

106

126

Adjustment for retirement benefits (cumulative)

(24)

(6)

Total Accumulated other comprehensive income

154

209

Non-controlling Interests20

19

Total Net Assets

6,068

7,929

Total Liabilities and Net Assets

33,58635,1677(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(In Millions of Yen)

Nine months
From April 1 to December 31
FY2022

FY2023

Net sales

34,34534,275

Cost of sales

22,40821,275Gross profit

11,937

12,999Selling, general and administrative expenses

10,825

10,579

1,111

2,419

10

7

Operating profit
Non-operating income
Interest income
Dividends income

34Land and house rent revenue

47

47

Other

88

48

Total non-operating income

149

107

Interest expenses

228

191

Loss on retirement of fixed assets

55

61

Non-operating expenses :

Other

40

31

Total non-operating income

325

284

Ordinary profit

935

2,242

Income before income taxes and minority interests

935

2,242

Income taxes-current

174

332

Income taxes-deferred

114

104

Total income taxes

288

436

Profit or quarterly net loss

647

1,806

Profit (loss) attributable to non-controlling interests

(1)

(0)

Profit(loss) attributable to owners of parent

649

1,806

8

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

Nine months
From April 1 to December 31
FY2022

FY2023

Quarterly profit

647

1,806

Other comprehensive income :Valuation difference on available-for-sale securities

14

16

(10)

20

0

18

Foreign currency translation adjustment
Retirement benefit adjustment
Total other comprehensive income

554

Quarterly comprehensive net income

652

1,861

Comprehensive income attributable to owners of parent

654

1,861

Comprehensive income attributable to non-controlling interests

(1)

(0)

(Breakdown)

9(3) 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10(Segment Information, etc.)
Ⅰ. Nine months ended December 31,2022 (From April 1, 2022 to December 31, 2022)
1. Information concerning the Amount of Net Sales and Operating Income (loss) by Segment(In Millions of Yen)
Segments

Elimination
or Group(note 1)

Consolidated(note 2)

HS

ES

SE

PV

PPS

ERD

Total

8,591

1,832

1,283

5,696

4,322

12,61934,345-34,345

-

-

-

-

-

-

-

-

-

8,591

1,832

1,283

5,696

4,322

12,61934,345-34,345

956

47

(90)

(121)

238

2,343

3,372

(2,260)1,111

Net Sales:
Sales to customers
Internal sales among
segments andtransfer accounts
Total
Operating profit(loss)(note 1)
Negative ¥2,260 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 2)
Operating income is adjusted to operating loss of quarterly consolidated statements of income.

Ⅱ. Nine months ended December 31,2023 (From April 1, 2023 to December 31, 2023)
1. Information concerning the Amount of Net Sales and Operating Income (loss) by Segment(In Millions of Yen)
Segments
HS

ES

SE

8,859

2,007

-

Total
Operating profit(loss)

Elimination
or Group(note 1)

Consolidated(note 2)

34,275-34,275

-

-

-

-

1,964

13,97834,275-34,275

87

3,200

4,463

(2,044)

2,419

PV

PPS

ERD

Total

948

6,516

1,964

13,978

-

-

-

-

8,859

2,007

948

6,516

1,277

34

(67)

(67)

Net Sales:
Sales to customers
Internal sales among
segments andtransfer accounts(note 1)
Negative ¥2,044 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 2)
Operating income is adjusted to operating loss of quarterly consolidated statements of income.

11

3. Others(1)Consolidated Net Sales by Division（In Million of Yen）
From April 1 to December 31
Comparison
Unit

FY2022

FY2023Item
QTY
Termite control construction
Under-floor/attic ventilation system
Foundation Repair/
Home Reinforcement System
OthersHome Sanitation Division Total*1,000tsubo

AmountQTY

AmountQTY

Amount

454

2,991

522

3,236

68

244

－

2,136

－

2,246

－

109

2,815

1,211

2,614

1,167

(201)

(44)

－

－

2,251

－

2,209

－

(42)

－

－

8,591

－

8,859

－

267

687

790

684

749

(3)

(40)

－
House

Anti-rust equipment installation

Piece

Water supply and drainage repair

－

－

526

－

756

－

230

Waterproofing and renovation of buildings

－

－

234

－

226

－

(7)

Others

－

－

280

－

273

－

(6)

－

－

1,832

－

2,007

－

175

－

－

1,283

－

948

－

(334)

－

－

1,283

－

948

－

(334)

Sales and installation of PV system

－

－

5,538

－

6,416

－

878

Wholesale of PV system

－

－

88

－

30

－

(58)

Others

－

－

69

－

69

－

0

Phtovoltaic Division Total

－

－

5,696

－

6,516

－

820

Sales of Electricity

－

－

4,322

－

1,964

－

(2,358)

－

－

4,322

－

1,964

－

(2,358)

Plastic fuelｔ

211,172

7,547

212,383

7,411

1,210

(135)

Power Plant

－

－

2,344

－

3,688

－

1,323

Waste liquid treatmentｔ76,0581,564

76,884

1,591

825

27

Landfill

－

－

799

－

753

－

(46)

OthersEstablishment Sanitation
Division Total
Sales and installation of PV system
Solar Engineering Division Total

Power Producer and Supplier
Division Total

－

－

362

－

553

－

190

Environmental Resources
Development Division Total－－

12,619－13,978－

1,359

Others

－

－

－

－

－

－

－

Adjustment of intersegment sales

－

－

－

－

－

－

－

Total Net Sales－－

34,345－34,275

－

(70)

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 ㎡.