Code：4651

Financial Results Briefing For
the Six Months Ended September 30, 2023

SANIX INCORPORATED
November 14, 2023

Contents
1. Financial Results of FY2023 2Q

P.3

2. Financial Results forecast of FY2023

P.20

3. Topics

P.23

Supplementary materials
4. （Business Structure）

P.27（Note）
・ Numbers are rounded off to the nearest whole number.
・ “( )” in operating income, ordinary income and net income indicate operating loss, ordinary loss and net loss respectively.
・ In case of negative or above 1,000%, margin is expressed by “-”.
Copyright© SANIX INCORPORATED

1

Financial Results for Six Months Ended
September 30,2023

Copyright© SANIX INCORPORATED

2

Financial Results of FY2023 2Q
decrease in sales, increase in profit year on year
✔ Slight decrease in sales, but significant increase in profit✔ Profit levels exceeded the plan⚫

Sales remained at the same level as the same period of the previous fiscal year, despite the impact ofbusiness restructuring in the PPS(Power Producer and Supplier) Division.

⚫

Profits in all business segments exceeded those of the same period of the previous year, with a particular
contribution from an increase in the unit contract price of electricity sold by the Tomakomai Power Plant.

Millions of Yen

FY2022
2Q Results

FY2023
2Q Results

FY2023
2Q Plan

YoY

Plan ratio

Net Sales

22,64922,58923,873

99.7%

94.6%

Gross Profit

8,068

8,548

8,746

106.0%

97.7%(Gross Profit Margin)

35.6%

37.8%

36.6%

Operating Profit

746

1,481

1,452

198.5%

102.0%(Operating Profit Margin)

3.3%

6.6%

6.1%

Ordinary Profit

611

1,343

1,336

219.6%

100.5%(Ordinary Profit Margin)

2.7%

5.9%

5.6%

Profit (loss) attributableto owners of parent

442

1,126

1,035

254.4%

108.8%(Net Profit Margin)

2.0%

5.0%

4.3%

Copyright© SANIX INCORPORATED

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Net Sales of FY2023 2Q
Net Sales Composition
FY2022
2Q Results

FY2023
2Q Results

FY2023
2Q Plan

YoY

Plan ratio

Millions of Yen

Net SalesHS

22,64922,58923,873

99.7%

94.6%

26.5%

ERD
40.7%

Residential Environment

8,108

7,904

8,858

97.5%

89.2%

Energy

6,322

5,486

5,886

86.8%

93.2%

Resource Circulation

8,218

9,198

9,128

111.9%

100.8%

40.7%

35.0%
FY2023
2Q

24.3%
PPS

Residential
Environment

18.4%

Energy■ Year-on-Year Comparison【ＨＳ】

Resource
Circulation【millions of Yen】

＋136

-197

＋743

22,649FY2022 2Q

SE
2.6%

PV

5.9%

-142

ES
5.9%

【ＥＳ】

【ＳＥ】

【ＰＶ】

-1,579+980

22,589

【ＰＰＳ】

【ＥＲＤ】

FY2023 2Q

Residential Environment

EnergyResource Circulation

-204

-836

＋980

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Operating Profit of FY2023 2Q
Operating Profit Margin
FY2022
2Q Results

FY2023
2Q Results

FY2023
2Q PlanOperating Profit

746

1,481

1,452

198.5%

102.0%

Residential Environment

792

853

1,365

107.6%

62.5%

Energy

(25)

18

(21)

ー

ー

Resource Circulation

1,558

1,981

1,551

127.1%

127.7%

Group(1,579)(1,371)(1,442)

ー

ー

YoY

21.5%
19.0%

Plan ratio

Millions of Yen

9.8%10.8%
-0.4%
0.3%
Residential
Environment

EnergyFY2022 2Q■ Year-on-Year Comparison

Resource
Circulation

FY2023 2Q【millions of Yen】

＋207

746

FY2022 2Q

+7

【ＨＳ】

＋17

＋35

＋108

【ＥＳ】

【ＳＥ】

【ＰＶ】

Residential Environment

＋60

-64

+422

1,481

【ＰＰＳ】
Energy【ＥＲＤ】【Group】

FY2023 2Q

Resource Circulation＋44
Copyright© SANIX INCORPORATED+422
5

【 Residential Environment Area 】
Residential Environment Area
⚫ Maintenance for detached houses⚫ Maintenance for apartment complexes

A comfortable living environment
to the next generation⚫ Residential solar power installation⚫ Hygiene management

We at Sanix promote a comprehensive maintenance service for detached houses, condominiums and other facilities, from theperspective of preventive medicine (the concept of prevention). In addition, by offering a broad range of services including
photovoltaic power generation, renovation, and urban space sanitation, we create comfortable and clean living conditions that canbe passed down from generation to generation.

HS Division
Our staff who are familiar with termite behavior take proper measures
to prevent infestations and exterminate termites. By utilizing
professional skills and expertise supported by a wealth of experienceand an excellent track record, in addition to well-prepared after-sales
services, we protect houses and eliminate house owners' concerns
about termite damage.

Residential Environment Area
Net Sales Composition

Termite control construction

Under-floor/attic
ventilation system

SE
7%

ES Division
We implement central control efficiently regarding the maintenance ofwater supply and drainage facilities. Using our mainstay anti-rustequipment and other devices, we keep rust from growing inside pipes
and extend the usable life of pipes, while also solving problems by
removing limescale and oil stains or limiting the ability of limescaleand oil to attach to surfaces.
Endoscopic inspection of the inside of
the water supply and drainage pipes

ES
17%

Pest control and removal

SE Division
We enable environmentally and budget-friendly lifestyles bypromoting photovoltaic power generation equipment for detachedhouses. We also make proposals on the flexible use of electricity
through the introduction of storage batteries amid the growing
demand for self-consumption type photovoltaic power generationequipment.

Net Sales
FY2023 2Q¥7,904 million

HS
76%

Residential solar power
generation system

Storage batteries

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【 Residential Environment Area 】【 HS Division 】 (Year-on-Year Comparison)⚫ decrease in sales, increase in profit
Sales of termite control construction remained strong as the HS Division strengthened its sales
policy with a focus on the development of new customers while also accelerating initiatives with aneye toward the enhancement of its customer foundation. Meanwhile, overall sales decreased due
to lower sales mainly to existing customers.
Notwithstanding the fall in sales, profit increased with a decline in subcontracting costs and areduction of fixed costs such as SG&A expenses.
FY2023
2Q Plan【 millions of Yen 】

FY2022
2Q Results

FY2023
2Q Results

Net Sales

6,126

5,983

6,618

Termite control
construction

2,099

2,294

2,258

109.3%

101.6%

Under-floor/
attic ventilation system

1,514

1,497

1,726

98.9%

86.8%

Foundation Repair/
Home Reinforcement System

858

737

973

85.9%

75.7%

Others

1,653

1,453

1,660

87.9%

87.6%

Gross Profit

3,753

3,721

4,131

99.2%

90.1%

883

891

1,249

100.8%

71.3%

YoY

Plan ratio

Millions of Yen

Operating Profit

97.7%

90.4%

3,344
2,781

651

1Q

Copyright© SANIX INCORPORATED

231
2Q

2,465

72
3Q

2,857

3,027 2,9563,044 3,174

381

445

445 411

4Q

1Q

2Q

FY2022

3Q

420
4Q

FY2023

Net Sales(Plan)

Net Sales(Results)

Operating Profit(Plan)

Operating Profit(Results)7

【 Residential Environment Area 】【 ES Division 】 (Year-on-Year Comparison)⚫ increases in sales and profit
Sales for the installation of the anti-rust equipment (product name: Daelman Shock), water supply
and drainage repairs and waterproofing and renovation of buildings increased due to active sales
as well as the strengthening of relationships with partners, resulting in increases in sales and profit.

FY2022
2Q Results

FY2023
2Q Results

1,190

1,326

FY2023
2Q Plan【 millions of Yen 】
YoY

Plan ratio

Millions of Yen

Net Sales

1,292

111.4%

102.7%

456

493

630

108.0%

78.3%

Others

733

833

662

113.6%

125.9%

Operating Profit

641

-13

22

38

1Q

2Q

3Q

547

Anti-rust equipment
installation

Gross Profit

643

593

638

726

107.7%

87.9%

8

26

91

298.7%

28.5%

Copyright© SANIX INCORPORATED

743

707 664

644

-10

36

35

36

1Q

2Q

3Q

4Q

618

83
4Q

FY2022

FY2023

Net Sales(Plan)

Net Sales(Results)

Operating Profit(Plan)

Operating Profit(Results)8【 Residential Environment Area 】【 SE Division 】 (Year-on-Year Comparison)⚫ decrease in sales, increase in profit
Sales declined, reflecting a temporary decline in sales due to the allocation of staff to thedevelopment of business partners with a view toward the improvement of sales efficiency.
However, deficit narrowed due to improved profitability.

FY2023
2Q Plan【 millions of Yen 】

FY2022
2Q Results

FY2023
2Q Results

Net Sales

791

594

948

75.0%

62.7%

Gross Profit

257

160

321

62.3%

50.0%

24

ー

ー

YoY

Plan ratio

Millions of Yen

Operating Profit

(100)

(64)

491

443

401

390

-44

-55

9

43

1Q

2Q

3Q

4Q

FY2022

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292

486

466

301

-33

-31

10

2

1Q

2Q

3Q

4Q

FY2023

Net Sales(Plan)

Net Sales(Results)

Operating Profit(Plan)

Operating Profit(Results)9【 Energy Area 】
Energy with low environmental impact

Energy Area
⚫ Installation of photovoltaic power generation equipment for selfconsumption for corporate clients⚫ Maintenance of existing photovoltaic power equipment/plants⚫ Development for photovoltaic power generation for energy companies⚫ Retail sales of electric power

We at Sanix seek to promote the widespread adoption and expansion of renewable energy while also supporting the promotion ofenvironmental management, including the provision, introduction and maintenance of optimal photovoltaic generation systems, in
response to customers' needs.

PV Division
We facilitate the effective use of the roofs of plants and otherbuildings. We support cost reduction efforts (electricity), disaster
preparedness and environmental management through photovoltaic
power generation with a focus on self-consumption type and thirdparty owned type photovoltaic power generation systems. We
provide comprehensive services including planning, design andinstallation, as well as aftersales services.

Energy Area
Net Sales Composition

Self-consumption type / PPA

PPA(third-party owned type photovoltaic power generation systems)
PPA operators install photovoltaic power generation systems on
customers' roofs or other places on their premises and bear the costof installation (the PPA operator owns, maintains and manages thesystem). According to this scheme, the PPA operator provides theelectricity generated by the system to the customer for a fee.

Development of non-FIT
power sources

We provide a range of support
services, including internet-based
monitoring (remote monitoring)and legally required maintenanceand inspections, to ensure that
customers' photovoltaic power
generation systems are securely
operated.

Ｏ＆Ｍ

PPS Division

PPS
24%
Net Sales
FY2023 2Q¥5,486 million

PV
76%

We were registered as the nation's eighth power producer and supplier (electricity retailing) in 2001
and registered with the Ministry of Economy, Trade and Industry as an retail electricity supplier at
November 2015. The photovoltaic power generation business and electricity sales business arestrongly connected to each other. The synergy between the two businesses enables us to offer abroad range of services.
Electricity retail

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【 Energy Area 】【 PV Division 】 (Year-on-Year Comparison)⚫ increases in sales and profit
Sales increased due to actively accelerating the development of non-FIT power sources and theinstallation of corporate-use self-consumption type photovoltaic power generation plants as well as
sales for maintenance services at existing photovoltaic power plants remaining solid. Meanwhile,
although the impact of increased material costs chiefly due to the impact of foreign exchange rates
continues, the deficit narrowed due to improved profitability.
【 millions of Yen 】

FY2022
2Q Results

FY2023
2Q Results

FY2023
2Q Plan

3,408

4,151

4,664

121.8%

3,286

4,089

4,557

124.4%

89.7%

74

14

60

19.3%

24.0%

YoY

Plan ratio

2,929

Millions of Yen

Net Sales
Sales and installationof PV system
Wholesaleof PV system
Others

2,287

89.0%

2,927
2,527
2,064 2,087

1,691 1,716

47

47

47

99.6%

99.6%

Gross Profit

745

909

958

121.9%

94.9%

Operating Profit

(159)

(50)

(27)

ー

ー

-67

-91

1Q

2Q

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37

144

3Q

4Q

FY2022

-41

-8

27

102

1Q

2Q

3Q

4Q

FY2023

Net Sales(Plan)

Net Sales(Results)

Operating Profit(Plan)

Operating Profit(Results)11【 Energy Area 】【 PPS Division 】 (Year-on-Year Comparison)⚫ decreases in sales and profit
Sales were approximately half of the same period of the previous fiscal year, reflecting the
restructuring of the business that began in the previous fiscal year, resulting in decreases in sales
and profit. However, profitability was secured by revamping the business structure to one that does
not rely on market procurement.

FY2022
2Q Results

FY2023
2Q Results

2,914

1,335

Gross Profit

235

Operating Profit

133【 millions of Yen 】

FY2023
2Q Plan

YoY

Plan ratio

Millions of Yen

Net Sales

1,624
1,289

1,221

45.8%

109.3%

127

79

54.1%

159.6%

69

5

51.8%

ー

1,408
1,058
751
583

-28
1Q

161
2Q

573

104

1

32

36

-2

-0

3Q

4Q

1Q

2Q

3Q

4Q

FY2022

Copyright© SANIX INCORPORATED

578

FY2023

Net Sales(Plan)

Net Sales(Results)

Operating Profit(Plan)

Operating Profit(Results)12【 Resource Circulation Area 】
Resource Circulation Area

Recycling resources instead of abandoning⚫ Recycling of waste plastics⚫ Purification of waste liquid and production of recycled fuel⚫ Power generation from waste plastic fuel⚫ Final disposal of industrial waste

We at Sanix contribute to the establishment of a recycling-oriented society through efforts including the conversion-to-fuel andrecycling of industrial waste plastics and the purification and recycling of waste water discharged from food factories and otherfacilities for the betterment of the global environment for next generations of people.
Fuel conversion of waste plastic

Resource Circulation Area
Net Sales Composition

We operate 15 factries (plastic resource development plants)
nationwide to convert industrial waste plastics to fuel. Waste plastics,
whose sizes and shapes are different, are finely ground and recycled
as fuel that replace oil and coal. We began full-scale material
recycling efforts.
Plastic resource
development factory

Landfill 5%

Others 4%

Plastic fuelResource recycling power generation system

Waste liquid
treatment
11%

We use plastics converted to fuel at the plastic resource development
plants as an energy source for power generation facilities. As theseplastics generate a greater amount of heat than coal while emitting
less CO2 and generating less incinerated ash, we can supply highvalue-added (non-fossil value) electricity with a low environmental
load.
Tomakomai Power Plant

Net Sales
FY2023 2Q¥9,198 million

Final disposal site

Power Plant
29%

Waste liquid treatment / recycling

Plastic fuel51%

We have a system in place for accepting large amounts of organic waste water and other wastematerials discharged by businesses in the foodservice industry, food factories, a range of drainage
pits and other facilities. Through a series of processing measures, the system has the ability toeliminate more than 99% of highly concentrated pollutants. In addition, we promote the conversionto-fuel and recycling of oil content and dehydrated sludge.
Waste liquid treatment plant

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【 Resource Circulation Area 】【 ERD Division 】 (Year-on-Year Comparison)⚫ increases in sales and profit
Despite an increase in repair expenses at Tomakomai Power Plant due to legal inspections (frommid-March to end-April 2023), sales and profit levels increased due to an increase in the contract
price of electricity sold, resulting in higher sales and profit.

FY2022
2Q Results

FY2023
2Q Results

FY2023
2Q Plan【 millions of Yen 】
YoY

Plan ratio

Millions of Yen

Net Sales

8,218

9,198

9,128

111.9%

100.8%

Plastic fuel

4,875

4,719

4,979

96.8%

94.8%

Power Plant

1,574

2,618

2,495

166.3%

104.9%

Waste liquid treatment

1,037

1,009

1,043

97.3%

96.8%

Landfill

488

486

360

99.7%

135.2%

Others

241

364

249

150.6%

146.0%

Gross Profit

2,482

2,990

2,528

120.5%

118.3%

Operating Profit

1,558

1,981

1,551

127.1%

127.7%

4,071 4,146

4,400

4,495

4,7034,593

1,484
710

847

784

810

1Q

2Q

3Q

4Q

Copyright© SANIX INCORPORATED

4,412

3,899

FY2022497
1Q

2Q

985 1,073

3Q

4Q

FY2023

Net Sales(Plan)

Net Sales(Results)

Operating Profit(Plan)

Operating Profit(Results)

14

Various transitions in the ERD Division
Tomakomai power plant operating status

Acceptance of waste plastic
Unit price of treatment(thousand yen/ton)Amount of waste plastics
accepted(1,000t)

Total electricity generation(GWh)

120

1200

90

60

100

1000

80

50

80

800

70

40

60

600

60

30

40

400

50

20

20

200

40

10

0

30

0

1Q

2Q

3Q

4Q

1Q

FY2021
boilers

Statutory
inspection turbines
Periodic
inspection

•

2Q

3Q

4Q

1Q

FY2022

〇

2Q

3Q

4Q

FY2023
〇

1Q

2Q

3Q

4Q

FY2021

1Q

2Q

3Q

FY2022

4Q

1Q

2Q

3Q

4Q

0

FY2023

Amount of waste plastics accepted(Plan)

Amount of waste plastics accepted(Results)

Unit price of treatment(Plan)

Unit price of treatment(Resuts)

〇
〇

〇

〇

〇

repair expense of ERD(Plan)

repair expense of ERD(Results)

Total electricity generation(Plan)

Total electricity generation(Results)*Unit price of treatment = Sales of plastic fuel divided
by the amount of waste plastics accepted

FY2023 statutory inspection: Mid-March to April 2023
※Legally required inspections: Once every two years (turbines: every four years, boilers: every two years）

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15

Consolidated financial condition

The equity ratio improved 2.6 percentage points to 20.6%.

As ofMarch 31,2023

As ofSep. 30,2023

Difference

Current Assets

13,683

14,404+ 720

105.3%

Non-Current Assets

19,902

20,847+ 945

104.8%

33,58635,252+ 1,665

105.0%

Current Liablities

16,382

17,491+ 1,109106.8%

Non-Current Liabilities

11,135

10,493

- 642

94.2%

Total Liabilities

27,51827,985+ 467

101.7%

Total Net Assets

6,068

7,266

+ 1,198

119.7%

Total Liablities and Assets

33,58635,252+ 1,665

105.0%

Millionos of Yen

Total Assets

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Ratio

16

Capital investment / Depreciation

FY2022
2Q Results

FY2023
2Q Results

33

6Millions of Yen

Residential Environment
Energy59【 Major capital investment 】⚫

592 Million Yen

113⚫

Resource Circulation

633
47

137

Capital investment

773

1,841

Depreciation

880

806

Investment related to the disposal of plastic waste
530 Million Yen

1,583
⚫

Headquarter

Investment related to the Landfill

Investment related to the Tomakomai Power plant
350 Million Yen

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17

Number of Personnel and sites by Division
As of March 31, 2023
( number of )sites

personnel

As of Sep. 30, 2023
sites

personnel

personnel
difference

HS Division

63

853

63

861

＋8

ES Division

12

160

12

171

＋11

SE Division

14

81

14

79

-2

PV Division

35

254

30

263

＋9

PPS Division

1

15

1

13

-2

ERD Division

18

444

19

460

＋16

Headquarter

―

247

―

229

-18

Total

―

2,054

―

2,076

＋22

※The abovementioned number of sites includes the double counting of sites operated by multiple divisions.
※One power generation facility and one final disposal facility are included in the ERD Division.

Copyright© SANIX INCORPORATED

18

Financial results forecast for FY2023※Consolidated results forecasts for the fiscal year ending March 31, 2024 remain unchanged from the consolidated
results forecasts announced on May 15, 2023.

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19

Financial results forecast for FY2023※Consolidated results forecasts for the fiscal year ending March 31, 2024 remain unchanged from theconsolidated results forecasts announced on May 15, 2023.

Forecast for Year on Year Increases in Net Sales and Profit●Net Sales●Operating Profit¥47,965million (Y o Y 103.6%)¥3,231million (Y o Y 181.0%)

Key points of revision of the consolidated financial outlook for the
fiscal year ending March 31, 2024
Key points

Residential
Environment Area

Energy Area

Resource
Circulation Area➢

Strengthen corporate sales structure and hire and train personnel to expand
business partners.

➢

COVID-19 restrictions on face-to-face sales activities have been almost
eliminated.

➢

Full-scale development of business models that do not depend on FIT, suchas self-consumption type solar power for corporations and municipalities,
and development of solar power sources in the PV Division.
In the PPS Division, complete business restructuring. (sales scale is about
half of the previous year's level)➢➢

Increase in the unit price of electricity sold by Tomakomai power plant.

➢

Outage of Tomakomai power plant due to legal inspections and increased
repair expenses.

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20

Important Management Indicators
FY2019Results

FY2020Results

FY2021Results

FY2022
Results

FY2023Plan

Return on equity

ROE

36.3%

27.9%

―

24.8％

35.0％

Return on assets

ROA

8.2%

6.4%

―

4.5％

9.0％

18.5%

24.5%

13.5%

18.0％

22.0％

10.8%

11.2%

―

8.4％

14.0％

Equity ratio
Return on invested
Capital

ROIC(Millions of Yen)FY2020Results

FY2021Results

FY2022
Results

FY2023
Plan

Capital investment

3,083

2,776

1,566

2,400

Depreciation

1,097

1,509

1,889

1,800

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21

Topics

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22

Awarded from Director-General, Industrial Science,Technology andEnvironment Policy Bureau,METI■Received the METI Industrial Science and Technology Policy and Environment Bureau DirectorGeneral's Award for the technological development and commercialization of "Recycled Oil Bio®."
SANIX awarded from the METI Industrial Science ,Technology and Environment Policy Bureau Director-General's Award at the 2023 Awards for
Resource Recycling Technology and Systems for the "Development of Environmentally Friendly Heavy Oil Alternative Fuel Recycled from Industrial
Waste."▶ Recycled Oil Bio®
It is recycled fuel that can be used as an alternative to fossil fuels by removing trashand sludge from industrial waste such as waste water and sludge generated byrestaurant chains, and separating and recovering only the oil content. It is acarbon-neutral fuel made from oil derived from plants. By utilizing unused
resources, it both reduces and recycles the industrial waste generated by cities,
making the waste into a product that can contribute to environmental conservation
toward the achievement of a decarbonized society. Since the amount of heatgenerated by the fuel is close to heavy oil, it is being sold as an alternative fuel toheavy oil, and the Company will expand its business with a view toward increased

Industrial waste as raw material

Recycled fuel (Recycled Oil Bio)sales in the future.

▶ Recycled Oil Bio® currently has three official recognitions
Recycled Products from Fukuoka
Prefecture▶ Doubling of production lines in FY2023
2023

Resource Recycling Technology and Systems
the METI Industrial Science and Technology Policy andEnvironment Bureau Director-General's Award

In the fiscal year ending March 31, 2024, we plan to increase the number of
production lines for recycled fuel "Recycled Oil Bio" from one to two.
Production capacity 2,160t / year ▶ 4,320t / year

Kitakyushu Eco Premium
Kitakyushu Eco Premium supports
the Sustainable Development Goals(SDGs)©Teitan,City of Kitakyushu

Development of environmentally friendly
heavy fuel oil recycled from industrial waste
SANIX INCORPORATEDAward Summar
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release： November 23, 2023
https://prtimes.jp/main/html/rd/p/000000105.000025581.html

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23

Expansion of sales channels through the use of exhibitions
2023 NEW
Environmental
Exhibition

The Company introduces and proposes a wide range of services for
Recycled Oil Bio, resource recycling power generation, material recycling
and environmental resources, mainly through SANIX system and SANIX

system Pro, which digitally and centrally manage waste-related operations.
< System overview >▶ SANIX system
A system that visualizes all aspects ofwaste, including collection,
treatment flow, volume, recycling
rate, to achieve appropriate andefficient business operations.

Decarbonization
Management EXPOAs we enter the era of decarbonization, the array of methods andinformation on decarbonization management for businesses andmunicipalities is expanding, and we introduce and propose services related

Environmental resources

Exhibit schedule2023 NEW Environmental Exhibition

May 24-26, 2023

Renewable Energy Industrial Fair in FUKUSHIMA

October 12-13, 2023

BUSINESS MATCH TOHOKU 2023

November 8, 2023

MESSE NAGOYA 2023

November 8-10, 2023

FOODTECH JAPAN

December 6-8, 2023

GUNMA Environmental Festival

December 9, 2023

SAINOKUNI Business Arena 2024

January 24-25, 2024

SDGs/ESG Support EXPO Spring

February 20-22, 2024

2024 NEW Environmental Exhibition

May 22-24, 2024

Photovoltaic power

Exhibit schedule

to photovoltaic power generation as a solution for decarbonization

Decarbonization Management EXPO【spring】

March 15-17, 2023

management.

Decarbonization Management EXPO(in Kansai)

November 15-17, 2023

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Solar power generation equipment installed at Yoshinoya Tokyo Factory■ Solar power generation equipment installed at Yoshinoya Tokyo Factory
The Company contracted to install a solar power generation

system on the roof of Yoshinoya Tokyo Factory, a manufacturing
facility operated by Yoshinoya Co., Ltd. (head office: Chuo-ku,
Tokyo; President: Yasutaka Kawamura). The factory has been in
operation with full self-consumption since September.
「Yoshinoya Co., Ltd.」Solar power generation equipment< System total capacity ：399. 6kW>

Our photovoltaic power generation business is strong in the provision of integrated services from procurement tosales, installation and maintenance. We will continue to contribute to the realization of a decarbonized society
leveraging the expertise we have accumulated through our experience in sales and the installation of photovoltaic
power generation systems.
▶ installation※ As of the end of September 2023
Number of industrial solar powersales and installation

Approx.

29,000

Number of residential solar powersales and installation

Approx.

20,000

Number of remote monitoring
equipment

Approx.

11,000

Release: October 26, 2023
https://prtimes.jp/main/html/rd/p/000000103.000025581.html

Copyright© SANIX INCORPORATED

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Supplementary materials（Business structure）

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Our Philosophy and business domain
Corporate Philosophy“Clean and comfortable environment for the next generation”
Make it common “Energy with low
environmental impact”
Main power source for renewable energy, distributed
power source, self-consumption, microgrid, VPP

EnergyMake it common “A comfortableliving environment is linked to thenext generation”⚫
⚫

PV Div.
PPS Div.

Long-life quality housing, securing housing stock,formulation of Pre-owned housing distribution market

Residential
Environment⚫ HS Div.
⚫ ES Div.
⚫ SE Div.

Resource
Circulation⚫ ERD Div.
Make it common “Recycling resources
without abandoning them
Basic Environmental Plan, Promotion of Recycling-Oriented
Society, Plastic Resource Recycling Strategy

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Business structure of the HS Division
Business structure of the HS Division
Termite control
construction

Providing services andproducts to respond to therange of needs associated withhousing.

・Guarantee for 5 years,

・Periodic inspections once each year

New
Customers

Establishment of a customer base
1

2

3 4

5

1 2
Redisinfection

Guarantee for 5 years,
periodic inspections
once each year

Measures to prevent moisturefrom invading houses

Foundation Repair

Flow chart for customer base development
New
Customers

Under-floor/attic ventilation system

3 4

5Redisinfection

Guarantee for 5 years,
periodic inspections
once each year

Repair of foundation cracks
Measures to reduce new
cracksHome Reinforcement System
Systems for enhancing theseismic resistance anddurability of houses

Visits, fliers and referrals

Development and response to new demand through theestablishment of trust relationships with customers

Copyright© SANIX INCORPORATEDOthers
Products for the improvementof living environments
including renovations

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Business structure of the ES Division
Business structure of the ES Division
Sales

Real estate managementcompany

SANIX

Sales
End-userOwners of condominiums,
rental apartments, offices, etc.

Conducting sales through realestate management companies

Introduction

Service
Major services and products
Water supply and drainage repair

Structure maintenance services

・Anti-rust equipment installation (Daelman
Shock）
・Piping work (repair and replacement of watersupply and drainage pipes)
・Water service work

Building rooftops
Application of waterproof
paints to external walls,etc.

OthersMeasures to prevent
environmental pollution,
etc.

SANIX/PCO services
Restaurants, Hotels, Food factories ,etc.

Pest and vermin control
service ,HACCPNew Contract

Annual contract (inspection and disinfection
to be conducted once a month)

1st Year

Renewal rates are high due to annual
contracts

Copyright© SANIX INCORPORATED

2nd Year
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Business structure of the SE and PV Division
Business structure of the SE and PV Division
Provision of a total service including manufacturing, sales, installation and maintenance.
Development and manufacturing

Sales

・Factory owned by theCompany (solar panels
and ancillary devices)
・Development of bases

・Simulation based on onsite surveys
・Various procedures
・Bundled sales of storage
batteries

Constructs

O&M(Maintenance)

・Detailed design・Installation work
・Electrical work

・Remote monitoring,and others, List of paid
maintenance services
・Warranty systems

SE Division for housing(less than 10 kW)

PV service for companies and municipalities(10 kW or more)⚫ Newly built houses: Promote ZEH⚫ Existinghouses: Support renovation forenergy conservation

Decarbonization initiatives are in full swing, especially withincompanies and local governments. The market, which differsfrom that under the FIT system, is expected to grow significantly
as methods of installing and owning photovoltaic power
generation facilities and methods of supplying generated
electricity become more diverse and sophisticated.

The PV market for residential and small buildings is
expected to grow steadily against the backdrop of
accelerated introduction of PV service due to theabove factors.
Build a new organization dedicated to the residential
PV market, aiming to actively develop the market.

Organize a cooperative system for the development of a range ofservices, starting sales in earnest this fiscal year. Expand theservices offered through continued collaboration with othercompanies and the utilization of our own PPS business.

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Diversification and enhancement of methods for installing and owning photovoltaic
power generation facilities and those for supplying generated electricity.
Against the backdrop of rising electricity prices, low-cost photovoltaic power generation systems and the wideuse of PPA services, the introduction of photovoltaic power generation is in full swing, driven by the need for
economic rationality, decarbonization and resilience enhancement.

Self-consumption

On-site PPA

Off-site PPA

Third party-owned(TP0)Privately-owned(PV owned by X Co.)

Third party-owned(TP0)self-consignment
Private lines

retailerretailer

Partial supply

Partialsupplyretailer
Land owned by X Co.

X Co.

retailer

Partial supply

X Co.

Constructed by X Co. ,Leaseback after selling theequipment to a lease company, etc.

Constructed by X Co. ,Leaseback after selling theequipment to a lease company, etc.

Privately-owned(PV owned by X Co.)
self-consignment
Private lines

retailer

Partialsupplyretailer
Land owned by X Co.

PartialsupplyLand owned by X Co.
Partial supply

retailer

X Co.

Source: he "Toward the popularization of power generation businesses" page of the Japan Photovoltaic Energy Association's website. Edited by the Company.

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Business structure of the ERD Division (i)Business structure of the ERD Division
Resource recycling power generation system Business
Power Plant and Landfill
Business

Waste plastic processing businessElectric power company
and trading firm

Sources that generate waste
plastics (factories)
Paid collectionof waste plastics
Sales of waste
plastic fuel toexternal
sources

Plastics Resource Development
factories

paper manufacturers

Sales ofmaterials
Operating company

Supply of waste
plastic fuelSale ofelectricity

Tomakomai power plant
Unrecyclable
materials

Company engaging
in final disposal

Final disposal ofincinerated ash【 Tomakomai power plant 】

C&R(Landfill）

Waste generator
Acceptance of external
parties◼ Fifteen plastic resource development factories located across the nation engage in the collection of waste plastics
generated at companies' manufacturing factories, with fees for disposal.
◼ Collected waste plastics are processed into waste plastic fuel and supplied to the Tomakomai Power Plant.
◼ Power is generated using the waste plastic fuel at the Tomakomai Power Plant and sold to electric power companies
and trading firms.
◼ In addition to the power plant, waste plastic fuel is sold externally to paper manufacturers, or for use as a raw material.
◼ The incinerated ash generated by the Tomakomai Plant goes through the final disposal process at C&R (a Tomakomaibased company that operates landfill sites)
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Business structure of the ERD Division (ii)
Waste liquid treatment

Sources that generate
Waste liquid

Paid collectionof waste liquid
Hibiki Factory(Kitakyushu city）

Reuse of oil

Entrustment ofdisposal operations

Operating company

Cement materials andcompostPurification
Sewerage and sea【 Hibiki Factory 】※The Hibiki factory is the largest
facility in Japan specializing in thetreatment of liquid waste.

◼ Waste liquid generated by food and beverage factories is collected with fees for disposal◼ Collected waste liquid is purified using microbe-based treatment ,etc. at the Hibiki factory (Kitakyushu City)◼ After purification, the treated water is reused as recycled waste liquid, or discharged into sewers or the sea after
confirmation that it satisfies discharge standards.
◼ Dehydrated sludge generated in the treatment process is reused as or converted into cement materials or compost

Copyright© SANIX INCORPORATED

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Disclaimer
This material contains certain forward-looking statements. Such forward-looking statements are notintended to provide guarantees of our future performance and are based on certain assumptions andmanagement’s judgment based on currently available information. Therefore, actual results in future
earnings and operating results may materially differ from those contained in the forward-looking
statements.
The following items are among the factors that could cause actual results to differ materially from theforward-looking statements in this material:changes in economic changes of the Feed-in-Tariff (FIT) scheme for renewable energy and changesof the utility company’s policy for installation of renewable energy, competition with othermanufacturers, changing technology, regulatory environment, new legislation and any other factors
which are beyond our control.
In addition, this presentation is not intended to solicit investment to securities issued by us. We
assume no responsibility for any losses and liabilities that may be incurred because of information
contained in this material.

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