Code：4651

Financial Results Briefing For
the Fiscal Year Ended March 31, 2023

SANIX INCORPORATED
May 15,2023

Contents
1. Financial Results of FY2022

P.3

2. Financial Results forecast of FY2023

P.22

Supplementary materials
3. （Business Structure）

P.33（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 the Fiscal year Ended
March 31,2023

2

Financial Results of FY2022
Results for Year on Year decrease in sales and increase in income●Net Sales¥46,277million(Y o Y 90.9%) (Plan ratio 99.4%)●Operating Income ¥1,785million(Compared to FY2021 ¥+4,403million) (Plan ratio 116.8%)

Highlights of Financial Results of FY2022
Year-on-year change
Residential
Environment
Area

EnergyArea

Resource
Circulation
Area➢ Face-to-face sales activities were temporarily
restricted due to an increase in COVID-19 infections
since July 2022.
➢ Net sales increased due to the newly launched SE
Division.
➢ Operating Income increased due to a decrease in
fixed costs in the PV Division as a result of thereorganization.
➢ PPS Division, the review of the business structure
has reduced procurement risks and improved
profitability (return to profitability).
➢ Decrease of repair expenses related to power plantinspections.
➢ Increase in depreciation related to capital
investment,etc.

Change from the plan
➢ The productivity of the HS Division fell temporarily
with the strengthening of the policy of focusing on
new sales activities in view of medium- to long-term
growth.
➢ The PV Division started posting self-consumption
solar power results, which required time forprocedures, etc. and it began construction of nonFIT power source development.
➢ Profit of the PPS Division grew due to the cost of
procuring electricity falling below assumptions.

➢ A rise in receiving unit prices at landfill.

Copyright© SANIX INCORPORATED

3

Financial Results of FY2022(Millions of Yen)FY2021Results
Net Sales

50,936

Cost of Sales

38,842Gross Profit

FY2022
Results
Plan

FY2021
Difference
YoY

FY2022 Plan
Difference Plan ratio

46,568- 4,659

90.9%

- 291

99.4%

30,533- 8,774

77.4%

- 464

98.5%

12,093

46,27730,068
16,20816,035+ 4,114134.0%+ 173

101.1%(Gross Profit Margin)

23.7%

35.0%

34.4%

Selling, general andadministrative expenses

14,711

14,507

- 288

98.0%

- 83

99.4%

Operating Income(2,618)14,423
1,785

1,528

+ 4,403－+ 257

116.8%

－

3.9%

3.3%

(2,900)

1,552

1,271

+ 4,453－+ 280

122.1%

－

3.4%

2.7%

Profit (loss)
attributable toowners of parent(3,449)

1,332

1,065

+ 4,781－+ 266

125.0%(Net Income Margin)

－

2.9%

2.3%

(Operating Income Margin)

Ordinary Income(Ordinary Income Margin)

Copyright© SANIX INCORPORATED

4

Net sales by segment of FY 2022
■Composition of Net Sales(Millions of Yen)FY2022
Results

FY2021
Difference
YoY

FY2022 Plan
Difference Plan ratio

Residential Environment

15,751+ 842

105.7%

- 548

96.6%

Energy14,007- 4,609

75.2%

+ 128

100.9%

Resource Circulation

16,518

- 489

97.1%

+ 129

100.8%

－

- 403

－

－

－

46,277- 4,659

90.9%

- 291

99.4%

Others/Adjustment
of intersegment sales
Total

HS
24.7%

ERD
35.7%

34.0%

35.7%
FY2022

PPS
11.6%

PV
18.6%

Energy■Net Sales increase / decrease compared to FY2021＋88+1,726【Millions of Yen】

- 4,454

【ＨＳ】

【ＥＳ】

【ＳＥ】

Resource
Circulation- 154

50,936FY2021

SE
3.7%

30.3%

Residential
Environment

- 971

ES
5.6%

【ＰＶ】

【ＰＰＳ】

- 489

【ＥＲＤ】

- 403

【Others】

46,277

FY2022

Resource
Residential Environment+842

EnergyCirculation

Others-4,609-489-403

Copyright© SANIX INCORPORATED

5

Operating Income by segment of FY2022■ Operating Income Margin(Millions of Yen)FY2022
Results
Residential Environment

FY2021
Difference
YoY

FY2022 Plan
Difference Plan ratio

1,421- 1,188

54.4%

- 177

88.9%

261

+ 4,908

－

+ 242

－

3,153

-5

99.8%

+ 199

106.8%

Others

－

+ 262

－

－

－

Group

(3,050)

+ 426

－

-6

－

Total

1,785

+ 4,403－+ 257

116.8%

EnergyResource Circulation

18.6%19.1%

17.5%
9.0%

1.9%
-25.0%

Residential
Environment
FY2021

EnergyResource
Circulation
FY2022【Millions of Yen】

■ Operating Income increase / decrease compared to FY2021＋4,412
-5

＋262

＋426

1,785

【Others】【Group】

FY2022-2,618- 1,045

FY2021

【ＨＳ】

- 96

- 47

【ＥＳ】

【ＳＥ】

Residential
Environment-1,188

＋495
【ＰＶ】

【ＰＰＳ】

【ＥＲＤ】

EnergyResource
Circulation

Others+4,908-5+689

Copyright© SANIX INCORPORATED

6

Results by segment of FY2022(Residential Environment Area)■Residential
Environment

Providing safe, secure and comfortable lifestyles by implementing appropriate maintenance fordetached houses, apartment houses, and other buildings. It also contributes to the efficient use ofresources by extending the life of buildings.

HS Division(Home Sanitation)
Provides comprehensive maintenanceservices related to environmental
sanitation for detached houses.

Provides comprehensive maintenanceservices related to environmental
sanitation for corporations (buildings,
condominiums, etc.).
●Maintenance measures for watersupply and drainage facilities inbuildings and condominiums●Painting the exterior walls
buildings and condominiums,
waterproofing the roof
●Control of pests, etc.

●Termite control system●Underfloor / attic ventilation system●Foundation repair●House reinforcement system●Home remodeling, etc.

FY2022
Results
Net Sales

SE Division(Solar Engineering)

ES Division(Establishment Sanitation)

Provides comprehensive services
including the manufacturing, sale,installation and maintenance ofphotovoltaic power generation systems
for detached houses.
●Solar power generation
system(residential)●Storage batteries,V2H●O&M(maintenance),etc.

(Millions of Yen) ※V2H：Vehicle to Home
Installation and sales of V2H incooperation with Mitsubishi Motors’
sales companies, among other parties.

FY2021
Difference
YoY

FY2022 Plan
Difference Plan ratio

15,751+ 842

105.7%

- 548

96.6%

HS Division

11,449

- 971

92.2%

- 565

95.3%

ES Division

2,575

+ 88

103.5%+ 124

105.1%SE Division

1,726+ 1,726

－

- 107

94.1%

Gross Profit

8,822

- 172

98.1%

- 289

96.8%

Operating Income

1,421- 1,188

54.4%

- 177

88.9%

Copyright© SANIX INCORPORATED

7

Results by segment of FY2022 (HS Division)■Net Sales【Millions of Yen】
Main factors for change
4,500 ●Operating Income
3000■Net Sales – 971Million Yen
4,000
2500
3,344
3,297 3,190
3,500【＋】 ・Expansion of sales bases by increasing the headcount2,983 2,949
2,857 2000
2,781
and opening new sales offices.
3,000
2,465
2,500
・Orders (Termite control construction) increased
1500
due to the strengthening of new sales activities.
2,000
716
1,500
1000【－】 ・Face-to-face sales activities were restricted due to an
677
651
513
474
increase in COVID-19 infections.
381
1,000
231
500
72
500
■Operating Income – 1,045Million Yen00【－】 ・Increase of personnel expenses due to active
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
efforts to increase the number of staff members.
FY2021
FY2022
・Decrease in profit due to lower net sales resulting fromlimited operating activities.

■Net Sales by segment・Operating Income
FY2022
Results
Net Sales(Millions of Yen)FY2021
Difference
YoY

FY2022 Plan
Difference Plan ratio

11,449

- 971

92.2%

- 565

95.3%

Termite control construction

3,939

+ 298

108.2%+ 106

102.8%

Under-floor/attic ventilation system

2,869

- 271

91.3%

- 124

95.8%

Foundation Repair/
Home Reinforcement System

1,692

- 361

82.4%

- 183

90.2%

Others

2,948

- 636

82.2%

- 363

89.0%

Gross Profit

6,870

- 796

89.6%

- 391

94.6%

Operating Income

1,337- 1,045

56.1%

- 274

83.0%

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Results by segment of FY2022 (ES Division)
1500【Millions of Yen】

1300 ■Net Sales●Operating Income
1100

595

669

637

585

643

547

641

743

500
300

43

77

57

83

49

100
-100

22

-13
1Q

2Q

Main factors for change

370 ■Net Sales +88Million Yen

900
700

470

3Q

4Q

1Q

2Q

FY202138
3Q

4Q

FY2022270【＋】 ・Expansion of sales bases by continuously increasing
the headcount.

170【－】 ・Despite the impact of the COVID-19 pandemic, there
has been a substantial recovery in recent months.

70 ■Operating Income – 96Million Yen【－】 ・Costs due to higher sales involving outsourced work
increased.
-30
・Increase in personnel expenses due to thestrengthening of the sales foundation.

■Net Sales by segment・Operating Income
FY2022
Results
Net Sales(Millions of Yen)FY2021
Difference
YoY

FY2022 Plan
Difference Plan ratio

2,575

+ 88

103.5%+ 124

105.1%

Anti-rust equipment installation

1,138

- 82

93.2%

+ 107

110.5%

Others

1,436

+ 170

113.5%+ 16

101.2%

Gross Profit

1,344

+ 16

101.2%+ 64

105.0%

130

- 96

57.5%

+ 43

150.5%

Operating Income

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Results by segment of FY2022 (SE Division)【Millions of Yen】

【Millions of Yen】

Operating Income

Net Sales

43
520
401

390

522

491

9

443

5

-5

-44
1Q

2Q
FY2022 Plan

3Q

2Q

3Q

FY2022 Plan

FY2022 Results■Net Sales by segment・Operating Income
FY2022
Results

-55

1Q

4Q

4Q

FY2022 Results(Millions of Yen)FY2021
Difference
YoY

FY2022 Plan
Difference Plan ratio

Net Sales

1,726

－

－

- 107

94.1%

Gross Profit

607

－

－

+ 37

106.6%

Operating Income

(47)

－

－

+ 52

－

※Due to an organizational change, the Company has decided to reclassify its business segments effective fromthe fiscal year ending March 31, 2023.
Due to the practical difficulty of reclassifying figures for the same period of the previous year, year-on-yearcomparisons have not been made for the (new) SE business segment in the business of photovoltaic power
generation systems for detached houses.

Copyright© SANIX INCORPORATED

10

Results by segment of FY2022(Energy Area)■EnergyContribute to the efficient use of resources and energy through the installation andsale of photovoltaic power generation systems and power transaction.

PV Division(Photovoltaics）

PPS Division(Power Producer and Supplier)

Provides comprehensive services including the
manufacturing, sale, installation and maintenanceof photovoltaic power generation systems forcorporate users.

Provides a retail electricity service to offices andhomes in the service areas of nine electriccompanies.

●Solar power generation
system(industrial)(Self-consumption,
PPA, FIT-system ,etc.)●Storage batteries●O&M(maintenance),etc.

●Electricity retail(Low-voltage and high-voltage)(Millions of Yen)FY2022
Results
Net Sales

FY2021
Difference
YoY

FY2022 Plan
Difference Plan ratio

14,007- 4,609

75.2%

+ 128

100.9%PV Division

8,625

- 154

98.2%

+ 583

107.3%PPS Division

5,381- 4,454

54.7%

- 454

92.2%

2,348

+ 4,278－+ 260

112.5%

261+ 4,908

－

+ 242

－

Gross Profit
Operating Income

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Results by segment of FY2022 (PV Division)【Millions of Yen】
■Net Sales●Operating Income
2,929
3,000
750
2,557
2,394
2,287
2,500
2,030
550
1,798
1,691 1,716
2,000
1,500
350
1,000
144
68
150
37
500
-67
-91
0
-150
-143
-50
-247
-500
-1,000
-250
1Q

2Q

3Q

4Q

1Q

2Q

FY2021

3Q

4Q■Net Sales by segment・Operating Income

Net Sales■Net Sales – 154Million Yen【＋】 ・Business results for non-FIT power source development
for corporate self-consumption began to be posted.
・Increase of sales for maintenance services atexisting photovoltaic power plants.

【－】 ・Excess solar power was transferred to the SE
Division as a result of the reorganization.
■Operating Income ＋495Million Yen【＋】 ・Fixed costs decreased due to the reorganization.

【－】 ・Increase of materials costs chiefly due to theimpact of foreign exchange rates.

FY2022

FY2022
Results

Main factors for change(Millions of Yen)FY2021
Difference
YoY

FY2022 Plan
Difference Plan ratio

8,625

- 154

98.2%

+ 583

107.3%

Sales and installation of
PV system

8,389

- 58

99.3%

+ 562

107.2%

Wholesale of PV system

143

- 118

54.8%

+ 15

111.9%

Others93+ 21

129.6%+5

106.5%

1,928

- 13

99.3%

+ 180

110.3%

22

+ 495

－

+ 146

－

Gross Profit
Operating Income※Due to an organizational change, the Company has decided to reclassify its business segments effective from the fiscal year ending March 31, 2023.
Comparisons in the PV business segment have been made with figures of the same period of the previous year for the (previous) SE business segment.

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12

Results by segment of FY2022 (PPS Division)
Main factors for change
6,300

4,060

4,300
2,300
300

【Millions of Yen】

■Net Sales●Operating Income

1,967

2,644
1,289

1,164
106

-80

-1,237-1,700
1Q

2Q

3Q-2,961
4Q

-28
1Q

1,624

1,408

161

104

2Q

FY2021

3Q

1,058
1
4Q

FY2022■Net Sales by segment・Operating Income
FY2022
Results■Net Sales – 4,454Million Yen
11,03910,039【＋】 ・Increase of unit sales prices linked to surging
9,039
8,039 energy prices.
7,039
6,039
【－】 ・Sales volume decreased due to change in
5,039 business structure.
4,039
3,039
■Operating Income +4,412Million Yen
2,039
1,039
【＋】 ・Price volatility risk reduced and the profitability of39▲ 961 electricity procurement improved by lowering the▲ 1,961percentage of electricity procured from the market.
▲ 2,961
・Decrease of fixed costs chiefly due to therelocation of staff members.

(Millions of Yen)FY2021
Difference
YoY

FY2022 Plan
Difference Plan ratio<Reference: JEPX (spot market) price trends>
30

Net Sales

5,381- 4,454

54.7%

- 454

92.2%

25

Gross Profit419+ 4,291－+ 79

123.4%

20

Operating Income239+ 4,412－+ 96

167.0%

15
10(Reference)

Adjustment ofintersegment sales

－

+ 56

－

－

－

5
March

March
FY2021

FY2022Average change in the JEPX (spot market) unit
prices (simple average of system prices (48 30minute frames per day))Copyright© SANIX INCORPORATED

13

Results by segment of FY2022(Resource Circulation Area)■Resource
Circulation

Contributing to efficient use of resources, securing clean water resources, and safe andsecure lifestyles by properly disposing of industrial waste, recycling resources, andpurifying water resources through waste liquid treatment.
ERD Division(Environmental Resources Development)

Engages in a resource recycling-type power generation business in which industrial waste
plastics are converted into fuels, recycled and used for power generation and a resource
recycling business in which waste liquids are purified, recycled and converted into fuels.
●Fuel conversion of waste plastic●Resource recycling power generation system(power generation from waste plastic recycled fuel)●Purification treatment and Fuel conversion of waste liquid and Recycling●Landfill, etc(Millions of Yen)FY2022
Results

FY2021
Difference
YoY

FY2022 Plan
Difference Plan ratio

Net Sales

16,518

- 489

97.1%

+ 129

100.8%

Gross Profit

5,037

+ 79

101.6%+ 202

104.2%

Operating Income

3,153

-5

99.8%

+ 199

106.8%

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14

Results by segment of FY2022 (ERD Division)
6,000
5,000

■Net Sales●Operating Income

4,037 4,156

4,576

4,000

【Millions of Yen】

4,237 4,071 4,146 4,400
3,899

3,000

1,032 1,135

2,000
1,000

815

710

847

784

810

4Q

1Q

2Q

3Q

4Q

174

0
1Q

2Q

3Q

FY2021

4,500■Net Sales – 489Million Yen
4,000【＋】 ・Tomakomai power plant's Non-Fossil Certificate contract
3,500
price (without non-FIT renewable energy designation)
3,000
increased in the non-fossil value trading market.
2,500
・A rise in receiving unit prices at landfills.
2,000【－】 ・Decrease of the acceptance volume of high priced waste
1,500
in plastic fuel.
1,000■Operating Income – 5Million Yen
500 【＋】 ・Decrease of repair expenses related to power plant0inspections.
【－】 ・Decrease of the acceptance volume of high priced
waste in plastic fuel.
・Increase in depreciation related to capital investment,etc.

FY2022■Net Sales by segment・Operating Income
FY2022
Results
Net Sales

Main factors for change(Millions of Yen)FY2021
Difference
YoY

FY2022 Plan
Difference Plan ratio

16,518

- 489

97.1%

+ 129

100.8%

Plastic fuel

9,829

- 745

93.0%

- 149

98.5%

Power Plant

3,122

+ 135

104.5%+ 82

102.7%

Waste liquid treatment

2,059

- 14

99.3%

- 26

98.7%

Landfill

1,014

+ 103

111.3%+ 172

120.5%

Others492+ 30

106.6%+ 51

111.6%

Gross Profit

5,037

+ 79

101.6%+ 202

104.2%

Operating Income

3,153

-5

99.8%

+ 199

106.8%

Copyright© SANIX INCORPORATED

15

Various transitions in the ERD Division■Tomakomai power plant operating status• FY2022 statutory inspection: Mid-March to April 2023
※Legally required inspections: Once every two years (turbines: every four years, boilers: every two years）

Operating Income (Millions of Yen)

Total electricity generation(GWh)

Periodic inspections
In Nov.

1,200
1,000

Periodic inspectionsin May.

Legal inspections
In Mar.-Apr.

800

Periodic inspectionsin Nov.

Legal inspections
In Mar.-Apr.

600
400
200
0

1Q

2Q

Capital investment（million yen）

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

Results

Results

Results

FY2020

FY2021

FY2022

2,248

2,410

1,322

Operating Income in ERD Division(Plan)

Operating Income in ERD Division(Results)

4Q

140
120
100
80
60
40
20
0

Total electricity generation■Acceptance of waste plastic
Unit price of treatment (thousand yen/ton)Amount of waste plastics accepted(1,000t)
90
80
70
60
50
40
30

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

Results

Results

Results
FY2022

FY2020

FY2021

Annual volume accepted

266

282

273

Unit cost of treatment

38.8

37.5

35.9

Plan for acceptance of waste plastics

Track record of waste plastics

4Q

60
50
40
30
20
10
0

Unit price of treatment*Unit price of treatment = Sales of plastic fuel divided by the amount of waste plastics accepted16Consolidated financial condition(Millions of Yen)FY2021
As of Mar. 31 As of Mar. 31 Difference
Ratio
FY2022

FY2021

Current Assets

14,551

13,683

- 867

94.0%

Non-Current Assets

20,401

19,902

- 499

97.6%

Total Assets

34,95333,586- 1,367

96.1%

Current Liablities

21,71816,382- 5,335

75.4%

Non-Current Liabilities

8,503

11,135+ 2,632

131.0%

Total Liabilities

30,221

27,518- 2,703

91.1%

Total Net Assets

4,732

6,068

+ 1,335

128.2%

Total Liablities and Assets

34,95333,586- 1,367

96.1%＜Total assets＞
Regarding current assets, cash and deposits and raw materials and supplies increased by ¥589 million and ¥439 million, respectively, while notes and accounts receivable - tradedecreased by ¥1,793 million.
As for fixed assets, construction in progress rose ¥226 million, buildings and structures (net of depreciation) declined ¥463 million, and lease and guarantee deposits decreased¥224 million.
＜Total liabilities＞
As for current liabilities, current portion of long-term loans payable increased ¥986 million, accrued consumption taxes increased ¥616 million, and accounts payable increased ¥331
million yen, while short-term loans payable decreased ¥6,689 million and notes and accounts payable-trade decreased ¥552 million.
As for non-current liabilities, provision for disposal site closing expenses and bonds payable declined by ¥209 million and ¥200 million, respectively, while long-term loans payablerose by ¥3,174 million.
The current ratio was 83.5% in FY2022, a 16.5 percentage point improvement from 67.0% in FY2021.
Equity-to-asset ratio improved 4.5 percentage points from 13.5% in FY2021 to 18.0% in FY2022.

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17

Capital investment/Depreciation
for the fiscal year ended March 31,2023■ Capital investment/Depreciation(Millions of Yen)FY2021Results
Capital investment
Depreciation

2,776
1,509

FY2022
Results

1,566
1,889

■ Depreciation by segment(Millions of Yen)FY2021Results
HS Division
ES Division
SE Division
PV Division
PPS Division
ERD Division
OthersHeadquarter
Total

51
3
－
26
9
2,410
15
259
2,776

FY2022
Results

49
0
1
61
2
1,322
－
129
1,566

Major capital investment
・ Investment related to the disposalof plastic waste：864Million Yen
・ Investment related to the recyclingof waste liquid：297Million Yen
・ Investment related to theTomakomai Power plant：144Million Yen

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18

Number of Personnel and sites by Division■ Changes in Number of Personnel by Division（consolidated）
FY2021

FY2022As of Mar. 31 As of Mar. 31■ Number of sites（including subsidiary)
FY2021changeFY2022As of Mar. 31 As of Mar. 31

ChangeHS Division

794

853

+59

HS Division

53

63

+10

ES Division

146

160

+14

ES Division

12

12

―

SE Division

―

81

+81

SE Division

―

14

+14

PV Division

334

254

- 80

PV Division

37

35

-2

PPS Division

28

15

- 13

PPS Division

1

1

―

ERD Division

432

444

+12

ERD Division

18

18

―

Others

42

―

- 42

Others4―-4

Headquarter

278

247

- 31

2,054

2,054

+0

※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.

Total※Due to an organizational change, the Company has decided to reclassify its
business segments effective from the fiscal year ending March 31, 2023.
Figures for the fiscal year ended March 31, 2022 have been presented after
reclassifying figures for the previous fiscal year according to the new segmentation.

19

Important Management Indicators
FY2018Results

FY2019Results

FY2020Results

FY2021Results

FY2022
Results

Return on equity

ROE

5.9%

36.3%

27.9%

―

24.8％

Return on assets

ROA

3.9%

8.2%

6.4%

―

4.5％

13.4%

18.5%

24.5%

13.5%

18.0％

2.3%

10.8%

11.2%

―

8.4％

Equity ratio
Return on invested
Capital

ROIC(Millions of Yen)FY2019Results

Capital investment

Depreciation

FY2020Results

FY2021Results

FY2022
Results

2,742

3,083

2,776

1,566

914

1,097

1,509

1,889

Copyright© SANIX INCORPORATED

20

Financial results forecast for FY2023

Copyright© SANIX INCORPORATED

21

Financial results forecast for FY2023
Forecast for Year on Year Increases in Net Sales and Income●Net Sales●Operating Income¥47,965million (Y o Y 103.6%)¥3,231million (Y o Y 181.0%)

Key points of revision of the consolidated financial outlook forthe fiscal year ending March 31, 2024
Key points
Residential
Environment 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, such as
self-consumption type solar power for corporations and municipalities, anddevelopment of solar power sources in the PV Division.

➢

In the PPS Division, complete business restructuring. (sales scale is about half ofthe 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.

Energy Area

Resource
Circulation Area

22

Financial results forecast for FY2023(Millions of Yen)FY2023First Half
Plan

Second Half

Diff. from FY2022

Plan

Full-Year

Diff. from FY2022

Plan

Diff. from FY2022

Net Sales

23,873+ 1,223

24,092+ 464

47,965+ 1,688

Gross Profit

8,746

+ 677

8,922

+ 781

17,668+ 1,459(Gross Profit Margin)

36.6%

Operating Income

1,452(Operating Income Margin)

6.1%

Ordinary Income

1,336(Ordinary Income Margin)

5.6%

Profit (loss)
attributable toowners of parent

1,035(Net Income Margin)

4.3%

37.0%

+ 706

1,778

36.8%

+ 739

7.4%

+ 724

1,678

1,460
6.1%

+ 1,446

6.7%

+ 737

7.0%

+ 592

3,231
3,014

+ 1,462

6.3%

+ 570

2,495

+ 1,163

5.2%

23

Financial results forecast for FY2023 by segment(Millions of Yen)FY2023First Half
Plan

Net Sales

Second Half

Diff. from FY2022

Plan

Full-Year

Diff. from FY2022

Plan

Diff. from FY2022

23,873+ 1,223

24,092+ 464

47,965+ 1,688

Residential Environment

8,858

+ 750

8,479

+ 835

17,337+ 1,586

Energy

5,886

- 436

6,607

- 1,077

12,493- 1,513

Resource Circulation

9,128

+ 909

9,005

+ 705

18,134+ 1,615

－

－

－

－

－

－

Operating Income

1,452

+ 706

1,778

+ 739

3,231

+ 1,446

Residential Environment

1,365

+ 572

916

+ 287

2,281

+ 860

Energy

(21)

+4

126

- 160

104

- 156

Resource Circulation

1,551

-7

2,059

+ 465

3,611

+ 457

(1,442)+ 136(1,323)+ 147(2,766)+ 284

Adjustment of intersegment sales

Group

24

Segment Forecast for FY2023(Residential Environment Area)(Millions of Yen)First Half
Plan

Net Sales

8,858

HS Division

6,618

ES Division

Sales
proportion

Second Half
Diff. fromFY2022

Plan

+ 750

8,479

74.7%

+ 492

6,219

1,292

14.6%

+ 101

PV Division

948

10.7%

Cost of sales

3,678

Material costs

Labor costs

Gross Profit
SG & A
Personnel expenses

Operating Income

Sales
proportion

Full-Year

Diff. fromFY2022

Plan

Sales
proportion

Diff. fromFY2022+ 835

17,337

73.3%

+ 895

12,83774.0%+ 1,387

1,308

15.4%

- 76

2,600

15.0%

+ 24

+ 156

952

11.2%

+ 17

1,900

11.0%

+ 173

41.5%

+ 175

3,804

44.9%

+ 378

7,482

43.2%

+ 553

1,369

15.5%

+ 253

1,357

16.0%

+ 125

2,726

15.7%

+ 379

1,227

13.9%

+ 81

1,312

15.5%

+ 127

2,540

14.7%

+ 208

5,179
3,814

58.5%

+ 575

55.1%

+ 457

+ 1,032

+2

44.3%

+ 169

9,854
7,573

56.8%

43.1%

4,674
3,758

43.7%

+ 171

2,388

27.0%

+ 67

2,378

28.0%

+ 144

4,766

27.5%

+ 212

1,365

15.4%

+ 572

916

10.8%

+ 287

2,281

13.2%

+ 860

+ 1,586⚫ The HS Division will expand new customer channels by reinforcing its corporate sales structure to enable JA and other business partners to expand, in
addition to developing new customers with close ties to the community. In addition to increasing the number of employees through hiring, the Division
will also focus on human resource development by providing a range of training programs suited to the employee's proficiency to enhance productivity.
⚫ The ES Division will expand sales channels for the installation of its main anti-rust product (brand name: Daelman Shock) by actively increasing contacts
with real estate owners through the development of partnerships with management companies, close follow-up with existing partners, and the use of
exhibitions and other events.
⚫ The SE Division aims to expand sales of photovoltaic power generation systems and storage batteries in response to the policy push for decarbonizationand energy conservation for detached houses and the need to reduce electricity rates and improve resilience (disaster response). At the same time, theDivision will facilitate alliances with house builders and construction companies to strengthen its sales structure.

25

Segment Forecast for FY2023(Energy Area)(Millions of Yen)First Half
Plan

Net Sales

5,886

PV Division

4,664

PPS Division

Cost of sales

Sales
proportion

Second Half
Diff. fromFY2022

Plan

- 436

6,607

79.2%

+ 1,256

5,455

1,221

20.8%

- 1,692

4,848

82.4%

Material costs

3,476

Labor costs

Gross Profit
SG & A
Personnel expenses

Operating Income

Sales
proportion

Full-Year

Diff. fromFY2022

Plan

Sales
proportion

Diff. fromFY2022- 1,077

12,493

82.6%

+ 237

10,11981.0%+ 1,494

1,152

17.4%

- 1,314

2,373

19.0%

- 3,007

- 493

5,395

81.7%

- 921

10,24482.0%- 1,414

59.1%

- 727

3,869

58.6%

- 1,059

7,346

58.8%

- 1,786

356

6.0%

- 14

379

5.7%

+ 23

735

5.9%

+9

1,037
1,059

17.6%

+ 56

18.3%

- 155

- 98

+ 52

16.4%

+5

2,249
2,144

18.0%

18.0%

1,211
1,085

17.2%

+ 57

519

8.8%

+ 14

537

8.1%

+ 12

1,056

8.5%

+ 26

(21)

－

+4

126

1.9%

- 160

104

0.8%

- 156

- 1,513⚫ The PV Division has fully shifted to a non-FIT model, proposing solar power for self-consumption to corporations and municipalities, developing renewableenergy (solar) power sources based on partnerships with energy companies, and facilitating after-sales maintenance at existing solar power plants. In
addition, the Division will strive to reduce costs overall to strengthen competitiveness and increase profitability.
⚫ The PPS Division is expected to complete its business restructuring to minimize business risks which it has been working on since the end of FY2022, andis expected to become about half the size of the previous year's business. After ensuring profitability, the Division aims to advance the management ofelectricity supply and demand, with a view to building an electricity supply model to expand the use of photovoltaic power generation in the future.

26

Efforts to realize a local decarbonized society■Contributing to the realization of a local carbon-free society
The Company has been selected as an operator for the installation of photovoltaic
power generation equipment in public facilities, as a part of the local government's
efforts to become carbon neutral by 2050.
Sanix⚫ We will lease land, etc. within facilities and install, operate and manage photovoltaic power
generation equipment.
⚫ Installation, operation, and management expenses are covered by the electricity fees paid by
the municipalities.

＜Business scheme＞
Sanix

Installation, operationand maintenance of
solar panels, etc.

Each local government⚫ Each local government will provide land, etc. within facilities, and the electricity generated will be
used at the facility.
⚫ Each local government will pay Sanix for the amount of electricity they use.

◆
◆
◆
◆
◆

Otawara, Tochigi
https://prtimes.jp/main/html/rd/p/000000089.000025581.html
Zama, Kanagawa
https://prtimes.jp/main/html/rd/p/000000087.000025581.html
Tomakomai, Hokkaido https://prtimes.jp/main/html/rd/p/000000091.000025581.html
Fukuoka, Fukuoka
https://prtimes.jp/main/html/rd/p/000000084.000025581.html
Makurazaki, Kagoshima https://prtimes.jp/main/html/rd/p/000000093.000025581.html

Each local government

PPA operator

Electricity usage fees

City-owned
facilities※PPA(Power Purchase Agreement）
A scheme for a PPA operator to install, operate and maintainphotovoltaic power generation equipment on premises owned byconsumers and supply and sell the electricity generated

Our photovoltaic power generation business is strong in the provision of integrated services from manufacturing 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.
Number of industrial solar powersales and installation

Approx.

29,000

Number of residential solar powersales and installation

Approx.

20,000

Remote monitoring equipment

Approx.

10,000※As of March,2023

27

Segment Forecast for FY2023(Resource Circulation Area)(Millions of Yen)First Half
Plan

Net Sales

9,128

Plastic fuel

4,979

Power Plant
Waste liquid treatment

Sales
proportion

Second Half
Diff. fromFY2022

Plan

+ 909

9,005

54.6%

+ 104

5,005

2,495

27.3%

+ 921

1,043

11.4%

Landfill

360

OthersCost of Sales
Labor costs

Gross Profit
SG & A
Personnel expenses

Operating Income

Sales
proportion

Full-Year

Diff. fromFY2022

Plan

Sales
proportion

Diff. fromFY2022+ 705

18,134

55.6%

+ 52

9,985

55.1%

+ 156

2,341

26.0%

+ 793

4,837

26.7%

+ 1,714

+5

1,077

12.0%

+ 55

2,120

11.7%

+ 61

3.9%

- 128

328

3.6%

- 197

688

3.8%

- 325

249

2.7%

+7

252

2.8%

+1

501

2.8%

+8

6,600

72.3%

+ 863

5,969

66.3%

+ 225

12,57069.3%+ 1,089

1,010

11.1%

+ 78

1,020

11.3%

+ 48

2,030

11.2%

+ 126

2,528
977

27.7%

+ 46

33.7%

+ 479

+ 525

+ 53

10.8%

+ 14

5,563
1,952

30.7%

10.7%

3,035
975

10.8%

+ 68

604

6.6%

+ 49

603

6.7%

+ 18

1,207

6.7%

+ 67

1,551

17.0%

-7

2,059

22.9%

+ 465

3,611

19.9%

+ 457

+ 1,615⚫ In the ERD Division, power plant sales are expected to increase significantly due to a rise in the unit price of electricity sold by the Tomakomai power plant.
In plastic fuel sales and waste liquid treatment sales, the Division will work on obtaining consistent transactions, utilizing the waste management system,
etc., and through the steady expansion of the volume of acceptance by cultivating new customers while having detailed follow-up for existing customers
as the business foundation. The Division will also broaden the range of waste materials suitable for acceptance by entering into material recycling.
⚫ In terms of expenses, statutory inspections of Tomakomai power plant's boilers and turbines will occur this year, and maintenance costs are expected torise significantly due to the fact that the plant has been in operation for 20 years.

28

Launching Sales of Waste Management System forCollection and Transportation Companies■Launch of SANIX system Pro for collection and transportation business companies (May 1, 2023)
Following the sale of the SANIX system waste management system which enables waste management companies to centralize their
management of waste-related operations, the Company began selling the SANIX system Pro waste management system forcollection and transportation companies on May 1, 2023.
SANIX system Pro
A dedicated system that supports proper and efficient everyday operations by digitalizing collection
and transportation operations such as contracts, reception, dispatching, collection andtransportation, vehicle management, and various types of recordkeeping related to general waste.

【Overall flow of SANIX system Pro】
Establish stress-free information sharing and a flow of information bydigitalizing the registration and management of various pieces of informationand many operations for customers and business partners.

Key functions➢ Digital storage management and the sharing of customer information, contracts and permits➢ Management of acceptance information➢ Collection route and schedule management to prevent problems (in real time)➢ Management of collection status and collection reports (in real time)➢ Vehicle management support (notifications sent using an alert function) for oil changes,
vehicle inspection dates, etc.
➢ Management of daily inspection records, management and analysis of a range of results,
reports, etc.

SANIX system
Advantages of introduction
A system that visualizes all aspects of waste, including collection and treatment flow, volume, andrecycling rate, to achieve appropriate and efficient business operations.

Key functions➢ Manage contract and permit expiration dates (notify via the alert function before expiration dates)➢ Track waste and manage disposal schedules➢ Manifest search — Linked to JWNET (electronic manifest system)➢ Automatic aggregation of results submitted to the government➢ Analysis (monthly discharge, comparisons by discharge site, etc.)（1）Compliance（2）Labor reduction and increase of the efficiency of disposal,
collection and transportation operations(3) Optimized costs and contribution to the environment
through visualization*• *Contribution to the environment: Reduction of CO2 emissions by optimizing
the frequency of collection and transportation and waste disposal methods,
the promotion of recycling through waste separation, etc.
Press release dated April 24, 2023
https://prtimes.jp/main/html/rd/p/000000097.000025581.html

29

Entry into the reuse and material recyclingof waste plastics■Efforts to diversify applications for waste plastics
In FY2023, we began full-scale material recycling efforts in which used plastics are to be reused as raw materials for plastic products. In theprocess of sorting waste plastics, we sort the suitable plastic materials, process them in cooperation with partner companies, convert them into
plastic materials, and recycle them as recycled products such as pallets, hangers, bags, etc.
For more than 20 years, we have been engaged in thermal recycling (heat recovery) at 15 resource
development plants nationwide, where waste plastic from manufacturing plants is collected, processed,and converted into fuel, which is then used to generate power at the Sanix Energy Tomakomai power
plant.

【Diversification of waste plastic applications】

In the future, we are also looking into the possibility of establishing a system for converting plastic materials into raw materials and producing
recycled products in-house. This will allows us to respond more flexibly to the requests of customers who are conscious of reducing theirenvironmental load, including the reduction of CO2 emissions and the maximization of the effective use of resources. The Company willcontinue to contribute to the realization of a decarbonized and resource-recycling society.
Press release dated May 8, 2023
https://prtimes.jp/main/html/rd/p/000000098.000025581.html

30

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

2,200~2,400

Depreciation

1,097

1,509

1,889

1,800

Copyright© SANIX INCORPORATED

31

Supplementary materials（Business structure）

Copyright© SANIX INCORPORATED

32

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

Copyright© SANIX INCORPORATED

33

Change in segment classification■Segments have been reclassified in line withthe organizational change made on June 1, 2022

Before segment change

After segment change
HS Division・・・Service business for detached house

SE Division
HS Division

Residential
EnvironmentArea

ES Division・・・Services business for corporation,business owners

ES Division

SE Division・・・Services business for Residential solar
power generation system

ERD Division

PV Division・・・Services business for Industrial solar
power generation system

EnergyArea

EB Division
Resource
CirculationArea

PPS Division・・・Services business for Electricity retail

ERD Division・・・Services business for Recycling waste

Copyright© SANIX INCORPORATED

34

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

35

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 Year36

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.

Copyright© SANIX INCORPORATED

37

Diversification and enhancement of methods for installing and owningphotovoltaic 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.

Copyright© SANIX INCORPORATED

38

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)
Copyright© SANIX INCORPORATED

39

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

40

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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