SANIX INCORPORATED
Summary of Consolidated Financial Statements
For the Fiscal Year Ended March 31, 2021
[Japanese Standards]

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

Consolidated Financial Statements for the Fiscal Year ended March 31, 2021
SANIX INCORPORATED
Stock Listed:Tokyo Stock Exchange First Section, Fukuoka Stock Exchange

Code No;

4651

URL:

https://sanix.jp

President and CEO:

Hiroshi Munemasa

Contact:

Kozo Inoue, Management Corporate Officer,
General Manager of Corporate Planning Division, Administration Division andManagement & Planning Division

1. Business Results – Operating results for the Fiscal Year ended March 31,
2021(April 1, 2020 to March 31, 2021)(1) Consolidated Operating Results(In Millions of Yen)
Fiscal Year
From April 1 to March 31
FY2020%change

FY2019%change

Net Sales······························································

49,416(5.9%)

52,531

3.6%

Operating Income ··················································

2,325(16.7%)

2,791

127.9%

Ordinary Income ····················································

2,091(19.3%)

2,592

119.2%Net Income ···························································

1,965

6.2%

1,850

670.7%Net Income per Share (¥) ········································¥41.11－¥38.72－Net Income per Share, Diluted(¥)······························

－

－

－

－

Return on Equity ····················································

27.9

－

36.3

－

Ratio of Recurring Profit to Net Assets ·······················

6.4

－

8.2

－

Ratio of Operating Income to Net Sales ·····················

4.7

－

5.3

－

(Note) Comprehensive Income ································

2,040

－

1,863

－

(2) Consolidated Financial Position(In Millions of Yen)
Fiscal YearAs of March 31
FY2020Total Assets···························································FY201932,94032,514

Net Assets ····························································

8,097

6,056

Shareholders’ Equity Ratio (%) ·······························

24.5%

18.5%

Net assets per share(¥) ···········································¥168.84¥126.15(Reference) Equity Capital ·······································

8,071

6,030

(3) Consolidated Financial Cash Flows(In Millions of Yen)
Fiscal Year
From April 1 to March 31
FY2020FY2019Cash Flows from Operating Activities·························

2,756

4,080

Cash Flows from Investing Activities ··························(2,564)(2,154)

Cash Flows from Financing Activities ·······················(743)(1,110)Cash and Equivalents ,End of Period ························

4,760

5,259

2. Dividends
Quarterly Period
1st

2nd

3rd

4th

Quarter

Quarter

Quarter

Quarter

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

AnnualTotal

PayoutDividends

Dividend

ratio

to Net Assets

paid(consolidated)(consolidated)

－

－

－

－

－

－

(Dividends per Share)
FY2019 ended March 31,

2020 ································································FY2020 ended March 31,

0.00

0.00

2021 ································································FY2021 ended March 31,

0.00

0.00

－

2022(Forecast) ································

3. Forecasts for Consolidated Business Results (April 1, 2021 to March 31, 2022)(In Millions of Yen)
Fiscal Year

From April 1 to March 31
First Half%change

Full Year%change

Net Sales······························································

23,6082.0%

49,703

4.1%

Operating Income ··················································

773(52.6%)

2,396

5.1%

Ordinary Income ····················································

652(57.3%)

2,166

5.9%

Net Income ···························································

373(72.8%)

1,540(19.7%)Net Income per Share (¥) ········································¥7.82¥32.22*NotesStarting from the beginning of the fiscal year ending March 31, 2022, the Company has decided to adopt the AccountingStandard for Revenue Recognition (ASBJ Statement No. 29.), etc. Since the consolidated financial results forecasts reflect the
adoption of such accounting standards, comparisons with the previous fiscal year or the same period of the previous fiscal year
are presented based on the assumption that such accounting standards were applied in the fiscal year ended March 31, 2021.

* Notes(1) Changes in significant subsidiaries during the period(Changes in scope of consolidations resulting from change in subsidiaries): None
Number of subsidiaries newly consolidated－
Name of subsidiaries newly consolidated－
Number of subsidiaries excluded from consolidation－
Name of subsidiaries excluded from consolidation－(2) Changes in accounting policies and accounting estimates retrospective restatementⅰ) Changes in accounting policies based on revisions of accounting standard: Noneⅱ) Changes in accounting policies other than ones based on revisions of accounting standard: Noneⅲ) Changes in accounting estimates: Noneⅳ) Retrospective restatement: None
(3) Number of issued and outstanding shares (common stock)(Shares)
End of term
Number of issued and outstanding shares ,end of period (including treasury stock)

FY 2020

FY 2019

48,919,396

48,919,396

Number of treasury stock at the end of period ··························································

1,114,693

1,114,443

Average number of shares during the period ···························································

47,804,857

47,805,137

(Reference) Business Result-Overview of non-consolidated Operating Results
1. Business Results – Operating results for the Fiscal Year ended March 31, 2020
(April 1, 2020 to March 31, 2021)(1) Non-Consolidated Operating Results(In Millions of Yen)
Fiscal Year
From April 1 to March 31
FY2020%change

FY2019%change

Net Sales······························································

46, 518(5.6%)

49,288

3.1%

Operating Income ··················································

1,088(14.4%)

1,271

147.7%

Ordinary Income ····················································

1,304(18.4%)

1,598

119.3%Net Income ···························································

1,286

20.4%

1,069

－

Net Income per Share (¥) ········································¥26.92－¥22.36－Net Income per Share, Diluted(¥)······························

－

－

－

－

(2) Non-Consolidated Financial Position(In Millions of Yen)
Fiscal YearAs of March 31
FY2020Total Assets···························································FY201925,441

26,947

Net Assets ····························································

4,386

3,075

Shareholders’ Equity Ratio (%) ·······························

17.2%

11.4%

Net assets per share(¥) ···········································¥91.75¥64.33(Reference) Equity Capital ·······································

4,386

3,075

* This summary of financial statements is exempt from audit procedure required by Financial instruments
and Exchange Act.
* Note to ensure appropriate use of forecasts:
Forecasts in this documents 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 ineconomical conditions. For details of these assumptions, prospects and plans, and for notes appropriate use of forecasts for thebusiness results, please see page 6 of the Attachment.

1. Index of the attachment
1. Information on Business Results & Financial Position for the fiscal year
ended March 31, 2021 ................................................................................................2(1) Information on Consolidated Business Results ............................................................................
2(2) Information on Consolidated Financial Position ............................................................................
4(3) Information on Consolidated Cash Flows ......................................................................................
6(4) Outlook for the next fiscal year ........................................................................................................
7

2. Basic Position regarding the Choice of Accounting Standards ................................9
3. Consolidated Financial Statements and Main Notes to the Statements ...................
10(1) Consolidated Balance Sheets .........................................................................................................
10(2) Consolidated Statements of Income and Comprehensive Income ............................................
12
Consolidated Statements of Income .............................................................................................
12
Consolidated Statements of Comprehensive Income ................................................................
13(3) Consolidated Statements of Changes in Net Assets. ............................................................
14(4) Consolidated Statements of Cash Flows .......................................................................................
16(5) Notes to the Consolidated Financial Statements ..........................................................................
17
Notes to the Assumption of a Going Concern .............................................................................
17
Segment Information ...................................................................................................................17Per-share information ..................................................................................................................20
Significant subsequent events ................................................................................................ 20

4. Supplemental Information .............................................................................................................
21
Consolidated Net Sales by Division.......................................................................................................21

2

1. Information on Business Results & Financial Position for the fiscal
year ended March 31, 2021
(1) Information on Consolidated Business Results
During the consolidated fiscal year under review, although there were signs ofrecovery such as the implementation of measures for the gradual resumption of
economic activity in Japan, the environment surrounding the Japanese economy
remains severe as the COVID-19 pandemic continues to impact the economy and it's
still unclear when the pandemic will end. In this situation, SANIX INCORPORATED and
its consolidated subsidiaries (hereinafter the “Group”) continued their respective
operations, prioritizing prevention of the infection’s spread.
Looking at net sales, the Solar Engineering (SE) Division began selling photovoltaic
systems for self-consumption in the current fiscal year following the revision of thefeed-in tariff (FIT). However, the division failed to absorb the decrease posted for the
installation of photovoltaic systems with land attached, a business category where
performance was strong in the previous fiscal year. As a result, net sales declined year
on year.

In addition, COVID-19 affected the respective business divisions, mainly intheir sales to corporate customers, including the stagnation of those customers’
economic activities in general. Meanwhile, while voluntary restrictions on sales
activities for individual customers did impact sales, usual sales activities while taking
thorough measures to prevent infection were resumed after the state of emergency wasended.

We have been able to minimize the impact of the COVID-19 pandemic

through sales activities addressing house maintenance needs during the pandemic. As
a result, the Group's consolidated net sales for the consolidated fiscal year underreview came to ¥49,416 million (down 5.9% year on year).
Profit decreased in the SE Division due to lower net sales. In the Energy Business(EB) Division, the supply and demand of electricity has tightened due to the constrained
fuel supply for thermal power cause by the LNG shortage in Japan and an increase inpower demand following an unusual prolonged cold snap in winter.

Due to this, prices

on the Japan Electric Power Exchange (JEPX) rapidly rose in January 2021. As a result,profit fell because the cost of procuring power increased beyond expectations. In theEnvironmental Resources Development Business Division, profit increased mainly due
to the improvement of the profitability of waste plastic articles. As a result, the Group
posted operating income of ¥2,325 million (down 16.7% year on year), ordinary incomeof ¥2,091 million (down 19.3% year on year), and net income belonging to theshareholders of the parent company of ¥1,965 million (up 6.2% year on year).
Consolidated results of individual divisions for this fiscal year were as follows:

3a. Solar Engineering (SE) Division
In the SE Division, SANIX INCORPORATED (hereinafter the “Company”) beganselling photovoltaic systems for self-consumption to develop a new market in thecurrent fiscal year anticipating a decline in the installation of photovoltaic systems withland attached, a business category where performance was strong in the previous
fiscal year, following the revision of the FIT system. However, sales fell due to the
COVID-19 pandemic. As a result, sales of photovoltaic generation systems decreased
30.5% year on year, and net sales came to ¥10,584 million (down 30.3% year on year).
Operating income for the segment amounted to ¥250 million (down 72.3% year onyear) due to the substantial effect of the sales decline, despite a fall in the materials
expenses ratio and a reduction in selling, general and administrative expenses.
b. Home Sanitation (HS) Division
The HS Division refrained from new sales visits during the state of emergency.
However, after the declaration of a state of emergency was released, we conductedusual sales activity while taking thorough preventive measures. Under suchcircumstance, despite a 6.5% decrease in foundation repairs/home reinforcement
systems, termite eradication services increased 0.6% year on year and under-floor/roof
ventilation systems increased 18.7% year on year. As a result, net sales in thissegment increased to ¥11,549 million (up 2.8% year on year).
Operating income for the segment came to ¥2,248 million (up 9.1% year on year),reflecting increases in personnel and other expenses attributable to the expansion of
the staff which were confined within the plan for the division.
c. Establishment Sanitation (ES) Division
The ES Division improved relationships with building and condominium owners andpartner companies, including management companies, by expanding business throughan active increase of personnel and the opening of a new sales office.

Despite a

37.7% decrease year on year in the water proofing of buildings, anti-rust equipment
installation of Daelman Shock, our main product increased 8.0％ year on year and therepair of building water-woks increased 20.2％ year on year. As a result, net sales forthe segment totaled ¥2,351 million (up 4.0% year on year).
Operating income for the segment amounted to ¥276 million (down 1.9% year onyear) because of an increase in personnel and other expenses due to a staff expansionthat exceeded the increase of profit from the net sales increase.
d. Environmental Resources Development (ERD) Division
In the Environmental Resources Development Business Division, sales increased
2.2% year on year as we focused on the enhancement of the quality of renewable fuels
and profitability despite a decrease in the volume of plastic fuel accepted due to thestagnation of economic activity during the COVID-19 pandemic. Meanwhile, sales from

4organic waste water recycling decreased 5.3% year on year due to a decrease in thevolume accepted and there was a 36.5% year-on-year reactionary decrease in sales
from landfill disposal due to the acceptance of waste from an earthquake in theprevious year. As a result, net sales in this segment amounted to ¥16,578 million (down
1.1% year on year).
Operating income stood at ¥3,673 million (up 5.5% year on year) due to theimprovement of profitability through the careful examination of waste plastic.
e. Energy Business (EB) Division
Moreover, in addition to the retail increases due to the increased number of contracts
for new electric power business, a third party-owned photovoltaic power generation
model for detached houses that the Company is promoting in collaboration with othercompanies has started to be established as a new solar power generation business.
Consequently, net sales in this segment increased 14.7% year on year, to ¥10,475
million.
The operating loss came to ¥529 million (an operating loss of ¥485 million in theprevious year) reflecting power procurement costs that were higher than expected due
to skyrocketing prices in the power wholesale market due to bad weather in the winterand the LNG shortage.
(2) Information on Consolidated Financial Position
Information on the status of Assets, of Liabilities, and of Net Assets
Total assets as of the end of the fiscal year under review amounted to ¥32,940
million, an increase of ¥425 million from the end of the previous consolidated fiscal year.
Total liabilities stood at ¥24,842 million, a decrease of ¥1,615 million from the end of
the previous consolidated fiscal year. Net assets totaled ¥8,097 million, a rise of ¥2,040
million from the end of the previous consolidated fiscal year. As a consequence, theshareholders equity ratio stood at 24.5% as of March 31, 2020.
(The status of Assets)
Current assets decreased ¥1,644 million compared to the end of the previous year,
coming to ¥14,633 million (down 10.1% year on year). Main factors in this weredecreases in cash and deposits of ¥662 million, raw materials and supplies of ¥444
million, work in process-construction of ¥269 million, and notes and accounts
receivable-trade of ¥224 million.
Fixed assets increased ¥2,069 million compared to the end of the previous year,
amounting to ¥18,306 million (up 12.7% year on year).

Major factors include

increases in machinery, equipment and vehicles of ¥931 million, construction inprogress of ¥636 million, and intangible fixed assets of ¥323 million.

5(The status of Liabilities)
Current Liabilities decreased by ¥4,714 million compared to the end of the previous
year to ¥16,861 million (down 21.9% year on year). Major factors include decreases inshort-term loans payable of ¥2,895 million, accounts payable of ¥774 million, andcurrent portion of long-term loans payable of ¥698 million.
Non-current liabilities increased ¥3,099 million compared to the end of the previous
year to ¥7,981 million (up 63.5% year on year). Major factors include increases inlong-term loans payable of ¥2,154 million, lease obligations of ¥348 million, and liability
related to retirement benefits of ¥131 million.
(The status of Net Assets)
Net assets rose by ¥2,040 million compared to the end of the previous year andamounted to ¥8,097 million (up 33.7% year on year). Key contributors to the increase
included the posting of net income (loss) belonging to the shareholders of the parent
company of ¥1,965 million.

6(3) Information on Consolidated Cash Flows
Cash and cash equivalents as of the end of the fiscal year under review decreased by¥498 million compared to the end of the previous year, amounting to ¥4,760 million.
Cash flows and reasons for changes in cash flows during the period are described
below.
(Net Cash Provided by Operating Activities)
Net cash provided by operating activities was ¥2,756 million (proceeds of ¥4,080
million in the previous year). Main factors were income before income taxes of ¥2,091
million and depreciation expenses of ¥1,097 million as non-cash expenditures.
(Net Cash Provided by Investment Activities)
Net cash used in investing activities was ¥2,564 million (expenditure of ¥2,154 million in
the previous year). This is mainly due to purchases of tangible fixed assets of ¥2,247
million.
(Net Cash Provided by Financing Activities)
Net cash used in financing activities was ¥743 million (expenditure of ¥1,110 million
in the previous year). This was chiefly caused by a net decrease in short-term loans
payable of ¥2,895 million, despite proceeds of ¥2,420 million from long-term loans
payable.
(Reference: The Cash Flow Indicators)
Fiscal Year
Shareholders’ equity ratio
Shareholders’ equity ratio on a market
price basis
Interest-bearing liabilities ratio to cash
flow
Interest coverage ratio(Note) Shareholder’s equity ratio:

FY2016FY2017FY2018FY2019FY2020

8.9%

13.5%

13.4%

18.5%

24.5%

28.9%

43.8%

37.5%

42.0%

47.5%

8.77

5.85

-

3.04

4.16

6.76

10.81

-

21.61

13.02

Shareholder’s equity/Total assets

Share ratio on a market price basis:

Total market value of stock/Total assets

Interest-bearing liabilities ratio to cash flow:
Interest coverage ratio:

Operating cash flow/Interest payment

Operating cash flow/Interest payment

1. The basis of the calculation for all values is consolidated financial data.
2. Market capitalization is calculated by multiplying the closing price of SANIX shares at the end of the
fiscal year by the number of shares outstanding at the end of the fiscal year.
3. Operating cash flow refers to Cash Flows from Operating Activities according to the consolidated
statement of cash flows. Interest-bearing liabilities are comprised of all liabilities on the consolidatedbalance sheet on which interest is payable. Interest expenditure refers to interest expenses paid
according to the consolidated statement of cash flows.

7(4) Outlook for the next fiscal year
The Group has been striving to achieve sustainable growth through the reinforcement
and expansion of its existing business base while kickstarting new initiatives andmaintaining sustainable and stable management during the Medium-Term
Management Plan (FY2019-FY2021).
Regarding the outlook for the future, the COVID-19 pandemic is expected to continue
impacting business. Even in these circumstances, the Group will continue to work tocreate a sustainable society based on its corporate philosophy of “A comfortableenvironment for the next generation” by innovating and leveraging its businessexperience in living environments, the resource cycle and the energy sector while
taking all measures to prevent COVID-19 infections.
The SE Division has changed the concepts behind products and the content ofproposals and has shifted its business activities since FY2020 when a FIT system
based on on-site consumption was designed. The Group will continue to advance thedevelopment of on-site consumption photovoltaic systems for corporations and sales ofthe systems for home-use with storage batteries. In the medium to long term, the Groupassumes that the self-consumption photovoltaic generation market will expand andbecome more common in society, and that it can reduce the environmental footprint
and electricity bills as a supply of power that emits zero CO2 zero emissions.
The HS Division will strive to reinforce its business base, increase its personnel
through hiring, open sales offices and increase the number of new customers and thetotal number of customers by further enhancing community-based new businessdevelopment and after-sales systems for existing customers.
The ES Division will seek to cultivate partners such as management companies,
introduce existing partners through close follow-ups, and increase opportunities forbusiness negotiations with real estate owners, while in parallel facilitating new store
openings. By doing so, it will continue to expand sales channels for the mainstay
anti-rust equipment installation product (brand name: Daelman Shock).
The ERD Division has been facilitating the improvement of the quality of plastic fueland the efficient operation of plants. The Group will continue to strive to improvebusiness performance by increasing acceptance volume while focusing on profitability.
In addition, the Group will aim for growth while recognizing its role in a society focusedon circular resource businesses by facilitating the manufacturing of renewable fuelsfrom organic waste water recycling as well. Regarding the business environment, there
has been an increase in awareness of environment pollution issues derived from waste
plastics leading to the government's formulation of a Plastic Resources Recycling
Strategy in May 2019. The environment-related market is expected to expand in the
future as well. The Group will operate its business with an understanding that the8business of appropriately processing and recycling waste plastics, a business theGroup has been active in to date, is a business that is very much needed by society.
The energy business division will strive to increase the number of retail power
contracts in the new electric power business, and stabilize profitability by securing
stable power suppliers. The division will also promote the development ofenergy-related businesses in collaboration with other companies’ services and will use
them as a foothold to create a new business model.
As for the forecast of consolidated financial results for the next fiscal year (ending
March 31, 2022),

the Group's business performance is expected to achieve net salesof ¥49,730 million (up 4.1％ year on year), operating income of ¥2,396 million (up5.1％ year on year), ordinary income of ¥2,166 million (up 5.9％ year on year), and net
income belonging to the shareholders of the parent company of ¥1,540 million (down
19.7％ year on year).
As the Group is to apply the Accounting Standard for Revenue Recognition, etc.
(Corporate Accounting Standard No. 29) beginning with the fiscal year ending March 31,
2022, this accounting standard was applied in calculating the consolidated financial
forecast. The percent change from the previous year is calculated based on theassumption that the accounting standards had been applied in the fiscal year ended
March 31, 2021.
The above forecasts have been prepared based on information available as of thedate of the announcement of the financial report. Actual results of operations may differ
from forecasts do to many factors that may arise in the future.

(Company’s measures

to prevent the spread of infectious diseases by the coronavirus)
With respect to measures to address COVID-19, the Group will make efforts tocontinue its business in consideration of the situation that changes daily while
prioritizing the safety of customers, business partners, community residents andemployees and their families, preventing infections and any further spread.
(Details of the Company’s measures are posted on its website)9

2. Basic Position regarding the Choice of Accounting Standards
The Group will use the Japanese standards for the time being. In addition, our policy
is to take proper steps toward the adoption of the International Financial ReportingStandards while giving due consideration to the circumstances in Japan and othercountries.

10

3. Consolidated Financial Statements and Main Notes to the Statements(1) Consolidated Balance Sheets(In Millions of Yen)

As of March 31
FY2019FY2020Assets :Current Assets :Cash and deposits

5,919

5,256

Notes and accounts receivable-trade

5,453

5,228

Merchandise and finished goods

56

36Work in process-construction

333

63

Raw materials and supplies

3,354

2,910

Other

1,362

1,330

Allowance for doubtful accounts

(202)

(194)

16,277

14,633

9,531

9,622

Less: Accumulated depreciation(7,799)(7,997)

Buildings and structures (net of depreciation)

1,732

1,624

Total current assets
Fixed Assets:
Tangible fixed assets :Buildings and structures, net

Machinery, Equipment and vehicles, net
Less: Accumulated depreciation
Machinery, Equipment and vehicles (net of depreciation)

12,682

13,243(10,611)(10,241)

2,071

3,002

Land

8,053

8,094

Lease assets, net

1,346

1,513

Less: Accumulated depreciation

(563)

(635)

Lease Assets, net

782

877

Construction in progress

923

1,559

Other, net

983

970

Less: Accumulated depreciation

(807)

(807)

Other, net

176

163

13,73915,322450773

Investment securities

86

120

Deferred tax assets

614

666

Total Tangible fixed assets
Intangible fixed assets
Investments and other assets :Lease and guarantee deposits
Other

580

611

1,348

1,373

Allowance for doubtful accounts

(582)

(560)

Total investments and other assets

2,047

2,210

16,23718,30632,51432,940Total fixed assets
Total Assets

11(In Millions of Yen)

As of March 31
FY2019FY2020Liabilities :Current Liabilities :Notes and accounts payable-trade

3,716

4,037

Short-term loans payable

9,525

6,630

928

230

Accounts payable

3,471

2,696

Accrued expenses

1,156

1,121

Lease obligations

322

476

Accrued income taxes

687

152

Accrued consumption taxes

615

602

Provision for bonus

256

256

5

5

Current portion of long-term loans payable

Allowance for resource-recycling expenses
Other

892

648

21,576

16,861

500

500

Long-term loans payable

262

2,417

Lease obligations

859

1,208

Long-term lease deposited

45

45

Provision for directors’ retirement benefits

99Provision for disposal site closing expenses

637

675

1,727

1,859

838

1,265

Total current liabilities
Non-Current Liabilities :Bonds payable

Liability related to retirement benefits
Other
Total non-current liabilities

4,881

7,981

26,45824,842

14,041

14,0411

1Retained earnings(6,506)(4,541)

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

Total shareholders’ equity

6,055

8,020

Valuation difference on available-for-sale securities

31

55

Foreign currency translation adjustment

(90)

1

Adjustment for retirement benefits (cumulative)

34

(5)

Total valuation and translation adjustments

(25)

50

26

25

Total Liabilities

Net Assets :Shareholders’ Equity :Capital stock
Capital surplus

Valuation and translation adjustments :Non-controlling Interests
Total Net Assets

6,056

8,097

Total Liabilities and Assets

32,51432,94012(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(In Millions of Yen)

From April 1 to March 31
FY2019FY2020Net sales

52,531

49,416

Cost of Sales

34,97432,263Gross Profit

17,556

17,153619

642

Advertising expenses

325

276

Provision of allowance for doubtful accounts

(62)

30

Salaries and bonuses

7,723

7,810

Provision for bonuses

163

163

Selling, General and Administrative expenses
Sales commission

Retirement benefit expenses
Legal welfare expenses
Rent expenses
Depreciation

242

171

1,010

1,082

927

1,007

189

294

Others

3,626

3,348

Total selling, general and administrative expenses

14,765

14,827

2,791

2,325

17

15

Operating Income (Loss)
Non-Operating Income :Interest income
Dividends income22Land and house rent revenue

63

63

Subsidy income

32

65

Other

48

47

Total non-operating income

164

195

208

208

Commission expenses

92

44

Loss on retirement of non-current asset

37

77

Non-Operating Expenses :Interest expenses

Other

25

98

Total non-operating expenses

363

429

Ordinary Income (Loss)

2,592

2,091

Income (Loss) Before Income Taxes and Minority Interests

2,592

2,091

734

189

Income Taxes-Deferred

11

(62)

Total Income Taxes

746

127

1,846

1,964

(4)

(0)

1,850

1,965

Income Taxes-Current

Net Income
Net Income (Loss) Belonging to the Non-Controlling Shareholders
Net income (Loss) Belonging to the Shareholders of the Parent
Company13(Consolidated Statements of Comprehensive Income)(In Millions of Yen)

From April 1 to March 31
FY2019
Income Before Minority Interests
Other Comprehensive Income :Valuation difference on available-for-sale securities

FY2020

1,846

1,964

(29)

23

Foreign currency translation adjustment

(73)

91

Retirement benefit adjustment

120

(39)

Total other comprehensive income

16

75

1,863

2,040

1,867

2,041

(4)

(0)

Comprehensive Net Income
Comprehensive Income Attributable toComprehensive income (loss) belonging to the shareholders of
the parent company
Comprehensive income (loss) belonging to non-controllingshareholders

14(3) Consolidated Statements of Changes in Net Assets
The previous consolidated fiscal year (April 1, 2019 to March 31, 2020)(In Millions of Yen)

Shareholders’ equity
Capital stock
Balance at the beginning ofcurrent period

Capitalsurplus14,041Retainedearnings
1(8,357)

Treasury
stock

Total
shareholders’equity(1,481)

4,204

Changes of items during theperiodNet income belonging to theshareholders of the parent
company

1,850

1,850

Purchase of treasury stock

(0)

(0)

Net changes of items otherthan shareholders’ equity
Total changes of items
during the period

-

-

1,850

(0)

1,850

Balance at the end ofcurrent period

14,041

1(6,506)(1,481)

6,055(In Millions of Yen)

Accumulated other comprehensive income

Balance at the
beginning of current
periodValuationdifference
on available
for salesecurities

Foreigncurrencytranslation
adjustment

60

(17)

Retirement
benefits
adjustment

Total
accumulated
othercomprehensive
incomeMinority
interests

Total
net
assets

(85)

(42)

31

4,193

Changes of items
during the period
Net income
belonging to theshareholders of theparent company
Purchase oftreasury stock
Net changes of
items other thanshareholders’ equity
Total changes of
items during theperiodBalance at the endof current period

1,850

(0)
(29)

(73)

120

16

(4)

12

(29)

(73)

120

16

(4)

1,862

31

(90)

34

(25)

26

6,056

15

The consolidated fiscal year (April 1, 2020 to March 31, 2021)(In Millions of Yen)

Shareholders’ equity
Capital stock
Balance at the beginning ofcurrent period

Capitalsurplus14,041Retainedearnings
1

Total
shareholders’equityTreasury
stock(6,506)(1,481)

6,055

Changes of items during theperiodNet income belonging to theshareholders of the parent
company

1,965

1,965

Purchase of treasury stock

(0)

(0)

Net changes of items otherthan shareholders’ equity
Total changes of items
during the period

-

-

1,965

(0)

1,965

Balance at the end ofcurrent period

14,041

1(4,541)(1,481)

8,020(In Millions of Yen)

Accumulated other comprehensive income

Balance at the
beginning of current
periodValuationdifference
on available
for salesecurities

Foreigncurrencytranslation
adjustment

31

(90)

Retirement
benefits
adjustment

Total
accumulated
othercomprehensive
incomeMinority
interests

Total
net
assets

34

(25)

26

6,056

Changes of items
during the period
Net income
belonging to theshareholders of theparent company
Purchase oftreasury stock
Net changes of
items other thanshareholders’ equity
Total changes of
items during theperiodBalance at the endof current period

1,965

(0)
23

91

(39)

75

(0)

75

23

91

(39)

75

(0)

2,040

55

1

(5)

50

25

8,097

16

(4) Consolidated Statements of Cash Flows(In Millions of Yen)

April 1 to March 31
FY2019FY2020Net Cash Provided by (used in) Operating Activities :Income before income taxes and minority interests

2,592

2,091

Depreciation and amortization

914

1,097

Increase (Decrease) in provision for bonuses

251

(0)

Increase (Decrease) in allowance for disposal site closing expenses

34

37

Increase (Decrease) in allowance for resource-recycling expenses(7)3

Increase (Decrease) in liabilities in retirement

205

91

Increase (Decrease) in allowance for doubtful accounts

(92)

(30)

Interest and dividends income

(20)

(18)

Interest expenses

208

208

Decrease(Increase) in notes and accounts receivable-trade

557

225

Decrease(Increase)in inventories

930

752

Decrease(Increase)in other current assets

(203)

73

Increase (Decrease) in notes and accounts payable-trade

(417)

251

Increase (Decrease) in accounts payable – other

(751)

(898)

Increase (Decrease) in consumption tax refund receivable

210

(13)

Increase (Decrease) in other current liabilities

277

(368)

Other

180

139

Subtotal

4,871

3,643

Interest and dividends income received

20

17Interest expenses paid

(188)

(211)

Income taxes paid

(632)

(708)

Income taxes refund

10

15

4,080

2,756

(625)

(702)

Net cash provided by operating activities

Net Cash Provided by (used in) Investment Activities :Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of tangible fixed assets
Proceeds from sales of tangible fixed assets
Purchase of intangible assets
Other
Net cash provided by investing activities

658

909

(1,956)(2,247)

9

8

(236)

(471)

(4)

(62)

(2,154)(2,564)

Net Cash Provided by (used in) Financing Activities :Increase (Decrease) in short-term loans payable(2,772)(2,895)

Proceeds from long-term loans payable

1,072

2,420

Repayments of long-term loans payable

(235)

(963)

Proceeds from issuance of bonds

500-

Repayments of finance lease obligations

(235)

(338)

Other

561

1,032

(1,110)(743)

Net cash provided by financing activities
Effect of Exchange Rate Changes on Cash and Cash
Equivalents

(54)

52

Net Increase (Decrease) in Cash and Cash Equivalents

761

(498)

Balance of Cash and Equivalents at beginning of period

4,497

5,259

Balance of Cash and Equivalents at end of period

5,259

4,760

17

(5) Notes to the Consolidated Financial Statements(Notes to Assumption of Going Concern): None(Segment Information, etc.)【Overview of reportable segments】
The reportable segments of the Group are its constituents for which separate financial
information is available and the Board of Directors regularly examines to determine the
distribution of management resources and evaluate performance. (Segment
Information, etc.)
SE Division
The segment sells and constructs industrial and residential solar electric powersystems. The Company also wholesales solar electric power systems and equipment.
HS Division
The segment performs construction related to environmental sanitation for generalhouseholds, specifically termite extermination, basic repair work and the constructionof underfloor and ceiling ventilation systems.
ES Division
The segment performs construction related to environmental sanitation for companies,
specifically the maintenance and construction of water supply and drainage facilities ofbuildings and condominiums.
ERD Division
The Company processes waste plastics collected as industrial waste and sells plastic
fuels to SANIX ENERGY INCORPORATED, a consolidated subsidiary.
The subsidiary operates the electricity sales business by using plastic fuels purchasedfrom the Company and its consolidated subsidiary Hokkaido SANIX Environment
Incorporated, and incinerated ashes generated by SANIX ENERGY INCORPORATED
are disposed of by C&R Landfill Incorporated, a consolidated subsidiary. SE Wings Inc.
is purchasing electricity from SANIX ENERGY INCORPORATED and sell to
consumers.
In addition, it accepts and processes organic waste water from the foodservice industry
and food factories.
EB Division
The segment conducts the PPS business for corporations and general households.

18

It also engages in the sale and construction work of the third party ownership (TPO)
model of solar power generation for general households.
2.Calculation method of net sales, profits, losses, assets, liabilities and other items byreporting segment
The accounting method of the reported business segments is the same as that statedin “Significant Items Regarding Preparation of Consolidated Financial Statements.”
Profits in the reportable segments are based on operating income. Intersegment sales
or transfers are determined by reference to current market values.

ⅠThe previous Fiscal Year(From April 1, 2019 to March 31, 2020)i) Information concerning the Amount of Net Sales and Operating Income (loss) bysegment(In Millions of Yen)

Segments

Elimination
or Group(note 1)

Consolidated(note 2)

SE

HS

ES

ERD

EnergyTotal

15,195

11,2352,261

14,706

9,132

52,531-52,531

-

-

-

2,053

-

2,053

(2,053)-

15,195

11,2352,261

16,7599,132

54,584(2,053)52,531

901

2,061

281

3,483

(485)

6,243

(3,452)

2,791

6,759

2,185

576

14,4491,535

25,506

7,008

32,514

78

47

4

653

3

786

127

914

88

36

2

2,210

6

2,345

396

2,742

Sales:
Sales to customers
Internal sales
Among segments andtransfer accounts
Total
Operating income (loss)
Segment assets
OthersDepreciation
Increase in property,
plant and equipment
and intangible assets(note 1)
Negative ¥3,452 million for adjustments of Operating income (loss) represents corporate expenses notallocated to reportable segments. Corporate expenses are mainly general and administrative expenses
note attributable to reportable segments.
(note2) An adjustment of segment assets is the Company assets of ¥7,008 million that are not allocated to
the reportable segments and consist mainly of surplus funds for investment (cash and deposits), long-term
invested funds (investment securities) and assets related to administrative divisions.
(note 3)Operating income (loss) is adjusted to operating loss of quarterly consolidated statements of income.

19

ⅡThe Fiscal Year (From April 1, 2020 to March 31, 2021)
ii) 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)

SE

HS

ES

ERD

EnergyTotal

10,584

11,5492,351

14,467

10,46349,416-49,416

-

-

-

2,111

12

2,111

(2,123)-

10,584

11,5492,351

16,578

10,47551,540(2,123)49,416

250

2,248

276

3,673

(529)

5,919

(3,593)

2,325

5,450

2,641

348

16,292

1,947

26,6806,259

32,940

86

42

2

736

5

873

223

1,097

116

30

8

2,248

13

2,417

666

3,083

Sales:
Sales to customers
Internal sales
Among segments andtransfer accounts
Total
Operating income (loss)
Segment assets
OthersDepreciation
Increase in property,
plant and equipment
and intangible assets(note 1)
Negative ¥3,593 million for adjustments of Operating income (loss) represents corporate expenses notallocated to reportable segments. Corporate expenses are mainly general and administrative expenses
note attributable to reportable segments.
(note2)

An adjustment of segment assets is the Company assets of ¥6,259 million that are not allocatedto the reportable segments and consist mainly of surplus funds for investment (cash and deposits),
long-term invested funds (investment securities) and assets related to administrative divisions.
(note 3)Operating income (loss) is adjusted to operating loss of quarterly consolidated statements of income.

20(Per-share information)
FY2019(From April 1, 2019

FY2020(From April 1, 2020 toto March 31, 2020)

March 31, 2021)

Net assets per share(¥)¥126.15¥168.84

Net Income per Share, Diluted(¥)¥38.72¥41.11

1.Fully diluted net income per share is not stated because there are no dilutive shares.
2. The calculation basis of net assets per share is as follows.

Total amount in net assets

FY2019(From April 1, 2019

FY2020(From April 1, 2020 toto March 31, 2020)

March 31, 2021)

6,056

8,097

Amounts deducted from the total
amount in net assets

26

25

Non-controlling interests

(26)

(25)

Net assets at the end of period oncommon shares

6,030

8,071

Number of common shares at theend of period used in calculation of
net assets per share

47,804,953

47,804,703

3.The calculation basis of net income per share is as follows.

Net Income per Share, Diluted(¥)
The calculation basis of net income
per share is as follows
Profit attributable to owners
parent on common shares

None

FY2020(From April 1, 2020 toto March 31, 2020)

March 31, 2021)

1,850

1,965

－

－

1,850

1,965

47,805,137

47,804,857

ofAverage number of common shares
during the fiscal year (shares)(Significant subsequent events)

FY2019(From April 1, 2019

21

4. Supplemental Information
Consolidated Net Sales by Division(In Millions of Yen)

By period
By item
Commercial PV System
Wholesales of PV Components
OthersFrom April 1 to March 31
FY2019FY2020Changes

14,807

10,284(4,522)

269

210

(59)

117

89

(28)

15,195

10,584(4,610)Termite Eradication Service

3,547

3,568

20

Under-Roof / Roof Ventilation System
Foundation Repairing/Home Reinforcement
System

2,497

2,965

467

1,881

1,759

(121)

Others

3,308

3,256

(51)

Home Sanitation Division Total

11,235

11,549314

Anti-rust Equipment Installation

1,124

1,214

89

Repair of Building Water-woks

469

564

94

Water Proofing of Building

292

182

(110)

Solar Engineering Total

Others

374

390

15

2,261

2,351

89

Plastic Fuel

10,111

10,330218

Generation of Electricity
Industrial Waste (Organic Waste Water
Recycle)

3,023

3,110

86

1,968

1,863

(105)

Final Disposal

1,122

713

(409)

533

561

27

16,75916,578

(181)

8,954

9,890

936

177

585

407

Energy Business Division Total:

9,132

10,475

1,343

Adjustment of inter-segment sales(2,053)(2,123)(70)

Total Net Sales

52,531

49,416(3,114)

Establishment Sanitation Division Total

OthersEnvironmental Resources Development
Division Total :Electricity Sales
Others