Clean and Comfortable Environment for the Next Generation

INCORPORATED
Integrated Report March 2022

2-1-23,Hakata-eki Higashi,Hakata-ku,Fukuoka
812-0013,JapanSANIX INCORPORATED

2022.12SANIX INCORPORATEDContents
About Sanix Group

5

Editorial policy

Sanix Group Business Area
Sanix Group through numbers
Sanix Group through the picture
Business of Sanix Group
History of Sanix Group

6
7
8
10
12

Sanix Group Value Creation

14

Materiality
Value creation process

15
18

It is edited as an integrated report for the purpose of deepening the understanding of stakeholders about the business content of "Environment and Energy" that Sanix Group is working
on and the process of realizing a comfortableenvironment for the next generation throughthis business.

Sanix Group Growth Strategy

20

Message from the President
Transition of management plan andmedium-term management plan
Outline of medium-term management plan
(FY2019-2021)
Results of the Medium-Term Management
Plan (FY2019-2021)
Results of the Medium-Term Management
Plan (FY2019-2021) (Major Issues)
Value creation story in the Residential
Environment segment

21
28

HS (Home Sanitation) Business
ES (Establishment Sanitation) Business

34
36

Value creation story in the Energy segment

38

SE (Solar Engineering) BusinessEB (Energy Business)

38
40

Value creation story in the Resource
Circulation segment

42

ERD (Environmental Resource Development)
Business

42

Topics: Sixth Year of Participation in VPP
Feasibility Study Project

46

Management Foundation that supports
sustainable growth47

Sustainability in business activities
Sustainability about people (education)
Sustainability about people (employment)
Sustainability about people (occupationalsafety and health)Sustainability about people (customer satisfaction)
Social contribution activities
Sustainability data
Management system
Corporate governanceCompliance • Risk management

48
50
51
52

Data Section

71

Financial data highlights
Share information
Company information

72
77
78

30
31
32
34

About Sanix GroupFor detailed information on products, services,business details, ﬁnance, etc., please check our
website. (See p.78)
This report has been edited with reference tothe "International Integrated Reporting
Framework" of the International Integrated
Reporting Council (IIRC) and the "Value
Co-creation Guidance" formulated by the
Ministry of Economy, Trade and Industry.

Report target period, etc.

54
56
62
64
66
68

Picture on front coverThis is the artwork that won
the ﬁrst prize in the "Painting Competition 2022," anin-house project.An "Ideal
Future Environment" by thechild of an employee.

4This ﬁscal year marks the ﬁnal year of the SANIXGroup's Medium-Term Management Plan
2019-2021.In this integrated report, we explain
the management issues, speciﬁc measures, andresults set forth in this medium-term management plan from both ﬁnancial and non-ﬁnancial
perspectives.

■ Target period: FY2021(April 1, 2021-March 31, 2022)■ Target organizations: Sanix Inc. and domestic
and overseas consolidated subsidiaries■ Accounting Standards: For the time being,
Japanese standards will be applied. Regarding the application of International FinancialReporting Standards, we will take appropriate
measures in consideration of various
domestic and international situations.

Precautions regarding future prospects
Forward-looking statements, such as performance forecasts, contained in this integrated
report are not intended to guarantee future
performance and are based on certain assumptions and management's judgment based on
currently available information.
Therefore, due to various factors, the actual
earnings and business results at a future point intime may diﬀer signiﬁcantly from the statements regarding the business forecast. This
material is not intended to solicit investment insecurities issued by the company. Please notethat the company shall not be liable for any loss
or debt incurred based on the information contained in this material.

Sanix Group Business Area
Sanix Group through numbers
Sanix Group through the pictures
Business of Sanix Group
History of Sanix Group5

About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

Clean and Comfortable Environment
Sanix Group through numbers

for the Next Generation.
Sanix Group continues to take on the chall enge.

Financial indicators

Cumulative results of main businesses (as of March 31, 2022)

Changes in Return on Equity (ROE) / Rate of Investment Interest (ROIC*)

Number of houses withtermite disinfection

36.3%

40%

27.9%

Approx.

20%
10.8%

0%

Sanix Group Business Area（Reorganization June 2022）

ROIC

11.2%

△14.6%-20%

Number of houses for pest control(Pest and vermin control for business establishments)

ROE

-40%

Approx.

△54.0%“ener

Oﬀering the best possible solution for
the introduction of solar power generation systems, including self-consumption and third-party ownership.
Supporting businesses in their eﬀorts
to promote decarbonization.

Photovoltaic Business

FY2019ＰＰＳ(Recycling waste)

Establishment Sanitation

ning”
ndo
ba
ta

(Services for corporation,business owners)

resources w
i
t
ho
u

nt to the next
ge
me
n
ne
o
vir

ling
cyc
“re

ES

Environmental Resource
Development

omfortable liv
i
n
ge
“a c
n

Residential
Environment
Support sanitary management and disastercountermeasures, centering on the maintenance of houses, buildings and condominiums.
Protecting homes and buildings that will bepassed down from generation to generation.

*On June 1, 2022, the company was reorganized (business areas remainunchanged).The ﬁgures on the following pages are based on the segments
before the reorganization (until FY2021).

Approx.

48,00010%

Solar power sales output

5%(including wholesale sales)

0%（Photo voltaic power generation
for detached houses andsmall buildings）

37,000

Number of solar power sales
and installation (in-house installation only)
13.5%

15%

SE
Solar Engineering

6

24.5%
18.5%

20%

”
ion
t
ra

Approx.

30%（PPS：Power Producer and Supplier）
Power retailing business(Services for detached house)

Number of water supply and drainage
pipe maintenance and management

Equity ratio
25%

Home Sanitation

FY2021(Installation of anti-corrosion equipment, etc.)( PV power generation for corporate clients )HS

FY2020※ROIC=Operating income after tax / (Average shareholders' equity at beginning andend of period + Average interest-bearing debt at beginning and end of period) x 100

“
ct
pa

Energy34,000 houses-60%

ow environme
th l
nt
i
w
im
y
g

PV

820,000 houses

FY2019FY2020Approx.

FY20211,400,000kW

Plastic processing volume
Sales / Operating proﬁt margin（100 million yen）
600

5.3%

6.0
4.7%

550

4.0

500

2.0

450

0

400

525

509

△5.1%
FY2019FY2020Resource-circulating
power generation

5,600,000ｔ

Amount of power generated byplastic fuelApprox.

4,800,000MWh

-2.0

494

350
300

Approx.

（%）

FY2021-4.0-6.0

Amount of waste liquid processed
Approx.

2,400,000ｔ

Through our business, we will contribute to the achievement of the SDGs.

Resource Circulation
R&D and operation of recycling systems
to recycle and reuse waste as energy
resources.
Contribute to the realization of a recycling-oriented society.

7About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

Sanix Group through the picture
Clean and Comfortable Environment for the Next Generation. A place where people live and gather, Sanix Group.

Through the work of "environment" and "energy", Sanix Group is working to create a society
where people can live comfortably while protecting the global environment. It also links to the SDGs.

Solar power generation(for residential and business use)
With integrated support from manufacturing
to sales, construction, and maintenance,
we have one of the leading installation
P38
results in Japan.

International exchange of sports
and culture through CSR
Supporting the implementation of international exchanges through sports forthe youth generation, which will lead to
P56
world peace for the next generation.

Waste plastic recycling &power generation
Use waste plastic as fuel.
Generates CO₂-free energy at a power
plant unlike any other in the world.

P42

Equipment maintenance & hygiene
management of various facilities
Support for facility maintenance of buildings
and condominiums, as well as hygiene
management for food factories,
P36
restaurants, hotels, hospitals, etc.

Maintenance and management ofgeneral housing
Extend the life of your home with total
maintenance. Over 45 years, more than
800,000 termites have been controlled.

P34

Electricity retail
Puriﬁcation & recycling ofwaste liquid
Purify waste liquid at one of the largest
treatment facilities in Japan. We are also
promoting the recycling of dehydrated
P42
sludge and oil as fuel.

8

Synergy eﬀects with solar power generation
business enable us to provide a wide rangeof services.
P40

9About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

Business of Sanix Group
With the adoption of the SDGs at the UN Summit in September 2015 and the Paris Agreement in December 2015, tackling

Main Businessenvironmental issues has become a key issue on a global scale. Japan is no exception, with the 2018 update of the basic plansin the ﬁeld of 'environment and energy', including the 2050 Carbon Neutral Declaration, and Environmental and the Energy
Basic Plan.
For many years, the Sanix Group has been committed to growth as a company working to create an environment for the next

■Residential Environment area

HS

Home Sanitation(Here after HS)

ES

Establishment Sanitation(Here after ES)

generation and to contribute to the achievement of a sustainable society. However, in the ﬁscal year ended March 31, 2021,
our new electric power business incurred a large loss due to the increased burden of power procurement costs caused bysoaring global energy prices. In response, we are shifting to a business structure that minimizes market risk in this businessand are aiming to create synergies with other businesses by strengthening functional aspects.
● Termite control system● Maintenance measures for water supply
and drainage facilities in buildings and condominiums● Painting the exterior walls of buildings
and condominiums, waterprooﬁng the roof
● Control of pests
etc.

● Underﬂoor / attic ventilation system

Sales by segment

Ordinary income / Net income（Million yen）
70,000（Million yen）

60,0003,000

50,000● Foundation repair work
● House reinforcement system● Home remodeling, etc.

4,000

49,99350,7197,621

10,60952,53150,93649,416
9,132

10,268

10,4632,592
1,850 2,091 1,965

2,000
1,000

1,019

1,180

40,0001,182■Energy area

240
14,134

14,706

13,003

16,97914,4670SE30,000

Solar Engineering-1,00020,00017,87010,000

1,444
8,922

14,427

15,195

10,584

8,780

1,926

2,261

2,351

2,487

10,752

11,235

11,54912,421

EB

Energy Business(Here after EB)-2,000-3,000▲2,900▲3,449-4,0000FY2018FY2019FY2021FY2017
FY2020（2018/March） （2019/March） （2020/March） （2021/March） （2022/March）(Act.)(Act.)(Act.)(Act.)(Act.)
■ＨＳ

■ＥＳ

■ＥＲＤ

■ＳＥ

FY2021FY2018FY2019FY2017
FY2020（2018/March） （2019/March） （2020/March） （2021/March） （2022/March）(Act.)(Act.)(Act.)(Act.)(Act.)■ＥＢ■Ordinary income● Solar power generation system(industrial / residential)■Net income● O&M (maintenance)※Exclude intersegment sales.

● Storage batteries, etc.

● Electricity retail(for business establishments and households)● Construction of next-generation energy system(distributed energy system, etc.)

Net assets per share / Net income per share

Total assets / Net assets（Million yen）

（Yen）
34,95335,00032,94032,51430,000(Here after SE)

29,938■Resource Circulation area

200
180

31,009168.84

160

ERD

140
25,000

Environmental Resources Development

126.15120
100

20,000(Here after ERD)

98.52
87.08

84.54

80
60

15,00040
20

10,000

5,000

4,076

4,193

41.11

5.02

● Fuel conversion of waste plastic

0

8,097
6,056

38.72
24.68

● Resource recycling power generation system

-20
4,732

-40

(power generation from waste plastic recycled fuel)-60
0● Puriﬁcation treatment of organic waste liquid, etc.

-80
FY2017FY2018FY2019FY2021
FY2020（2018/March） （2019/March） （2020/March） （2021/March） （2022/March）(Act.)(Act.)(Act.)(Act.)(Act.)■Total assets

10▲72.16■Net assets

FY2017FY2018FY2019FY2021
FY2020（2018/March） （2019/March） （2020/March） （2021/March） （2022/March）(Act.)(Act.)(Act.)(Act.)(Act.)■Net assets per share ■Net income per share

11About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

Cumulative results (As of March 2022)

History of Sanix Group

Number of houses withtermite disinfection
Approx.

Sanix Group was founded by the late Shinichi Munemasa (former president), who experienced the environmental hygiene
business in the USA, which was fully established as an industry, and was convinced of its necessity and future potential in Japan.
Sanix Group started out as a termite control company and then expanded its business to industrial waste recycling and solar
power generation in response to increase of demand and has furtherly expanded its business scope from housing to individual
houses, urban city spaces to the global environment.

820,000

Number of houses
for pest control

Residential Environment business area
Energy business area

Sanix Group aims to be an industrial leader in environment and energy ﬁeld to play a role in the development of a sustainable
society.

(Pest and vermin control forbusiness establishments)

Corporate slogan
Changed to "for Energy for Environment".
To the "Environment and Energy" company.

Approx.

34,000housesResource Circulation business area

Number of water supply
and drainage pipe maintenanceand management projects(Installation of anti-corrosion
equipment, etc.)

Transfer to the Tokyo Stock Exchange
Prime Market (April 2022)

37,000Approx.

Business scale(As of March 31, 2022/ Consolidated)
Number of solar powersales and installation

Amount of sales(March 2022)

50.9

Employees

2,054Billion yen

Sites
people131

With the introduction of CI, Birth ofSanix Corporate Slogan"FOR SANITARY AMENITY"
To a comprehensive environmental
hygiene management company

Sales trends

Full-scale electric power
retail business

Listed on the First Section of
the Tokyo Stock Exchange(in-house installation only)

JPY50.9billion48,000Capacity is about 1.4GW(equivalent to one nuclear power plant)

locationsOver-the-counter registration ofshares with the Japan Securities
Dealers Association

Plastic processing volume5,600,000

Solar power generation
business started

tarted industrial
waste treatment business

4,800,000

JPY10.2
billionApprox.

2,400,000

1981.3t1991.3

1980

1985

1990

1995

2000

2005

2010

2015

2020

1975 Founded

1980~
Diversiﬁcation fromdisinfection industry

1990~
Industrial waste treatment business started to contributeglobal environment

2000~
The energy recycling power generation business started

2010~
Solar power generation business started to becomean "environment・energy" company.

1975

1982

1991

1998

2000

2003

2010

2015

Sanyosanitation Inc.

General training center andresearch institute opened(Fukuoka Prefecture)

Opened an equipment
manufacturing factory

Takeo B factory for chemical
manufacturing established

Organic waste liquid
treatment business started

Completion of SANIX ENERGY
Tomakomai Power Plant

Established HOKKAIDO SANIX
KANKYO Inc.

Registration Electric retailer
registration(Takeo City, Saga Prefecture)

We have been focusing on
employee education for a longtime, "This is a job that requires ahigh sense of mission andprofessionalism as it is a job thatmakes ﬁlthy and dirty places
clean."

Established our own factory tocreate products that meetcustomer needs.

Operated by SUNAIM Inc., awholly owned subsidiary.

Aiming at the ban on ocean
dumping under the London
Dumping Treaty.

Power generation using fuelderived from waste plastic.
After that, we cleared the issues
one by one and accumulated
know-how.

The Tomakomai Factory (plastic
fuel conversion) was separated
as a subsidiary.

2016

Established a solar panel
manufacturing and sales
subsidiary in Shanghai

Following the complete
liberalization of the electricity
retail business, the electricity
retail business at Sanix Inc.
began.

The termite disinfectionindustry used to disinfect after
its outbreak. We took the ideaof "preventive medical
approach”, which stimulated
potential demand in themarket.

1999
Started fuel conversion
business for waste plastics

1987

In the course of waste
incineration, paid attention to
the high calorie content ofplastic combustion. Started abusiness to recycle plastic thathas been simply incinerated or
landﬁlled as fuel.

SANIX INCORPORATED established
Changed the company name andrestructured the business into a"total sanitation company" thatcreates a comfortable environment.

1978

1994

Founded Sanyosanitation Inc.

Entered the industrial waste
treatment industry

1981
Separated the corporate
environmental hygiene
department from the termite
department

12

MWh

Amount of waste liquid
processed

FoundedFY 1975t

Tomakomai power plant
power generation1989
Launched underﬂoor ventilation fan powered by solar cells

Established a new processing
plant in response to the needsof business partners. "In the
future, the vein industry that
puriﬁes waste will become
important."

2001

2009

Thermal recycling operation
Established SANIX ENERGY
Inc.

Acquired Hokuhai Inc. and C &R Inc., which operates the ﬁnal
disposal site.

Started construction of athermal power plant using
recycled fuel from waste plastic.
Established a wholly owned
subsidiary to become theoperating company.

From fuel conversion of waste
plastic to power generation andincineration ash for disposal. An
integrated system within thegroup has been established.

Speciﬁc scale electric powercompany registration
Eighth application nationwide
in anticipation of entering theelectric power business.

SHANRI (SHANGHAI) ENERGYSCIENCE AND TECHNOLOGY
CO.,LTD (100% owned
subsidiary). Started in-houseproduction of solar module andestablished an integrated
system from manufacturing tosales, construction, andmaintenance.

2017〜
Participated in VPP construction demonstration project
Since 2017, participated in the
Ministry of Economy, Trade andIndustry's "Virtual Power Plant
Construction Demonstration
Project Utilizing Consumer
Energy Resources" every year.

2018
Launched a recycled oil
production business within
the waste liquid puriﬁcationand treatment business.

Started solar power generation businessToward the spread andexpansion of solar power
generation, "good product atlower price".

Full-scale entry into theelectric power retail business2014
Established SE Wings Inc. toretail electricity

In 2021, Kitakyushu City selected
the company as a "Kitakyushu Eco
Premium" for products and services
with low environmental impact.

13

About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

Materiality■Identiﬁcation of materiality
With the identiﬁcation of social issues through macro trend analysis as the starting point, we have identiﬁed importantmanagement issues (materiality) through analysis of risks and opportunities for our company. We will prioritize them while
taking into account the degree of impact on corporate activities and utilize materiality in the formulation of medium-to
long-term management strategies and individual business strategies.
In response to issues that we have positioned as particularly important, we have selected "Focused Business Domains" asareas in which Sanix Group's resources will be intensively invested (see p.17). The related segments will work together toresolve issues by leveraging their strengths and steadily implementing growth strategies to achieve sustainable growth.

Sanix Group Value Creation

Through our eﬀorts on materiality, we will also contribute to the achievement of the "Sustainable Development Goals"
adopted by the United Nations in 2015.

Macro rends
Domestic

Universal/Overseas
・Increasing climate change
・Population growth inemerging countries

・Behavior Change after・Transition to a circular
economy・Growing aging population

・Accelerate digitization

・Labor shortage

・Diversiﬁcation of values

・Progress of urbanization

COVID-19

Identiﬁcation of risks and opportunities for the company

Identiﬁcation and prioritization of materiality＜Top management issues as the
management foundation＞
Particularly
important

Impo rt a n c et oValue creation process

st a k eh o ld er

Materiality●CSR promotion in the supply
chain●Biodiversity conservation●Legal compliance and compliance●Strengthening governance●Community contribution●Collaboration and partnership●Promoting diversity●Responding to climate change●Eﬀective utilization of resourcesand energy●Safe water and sanitary environment●Safe, secure, and comfortable
lifestyle●Human resource development
and employment securing●Response to the smart society●Promotion of occupational
health and safety●Improving the reliability of
products and services●Promotion of information
security policy●Ensuring Business Continuity
Plan (BCP)●Secure the ability to develop
new products, services, andbusinesses● On the global environment● On social systems● On companies and organizations

Important
Important
14

Impo rt a n c ein

S a n ix

Particularly
important15

About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section■Materiality of Sanix GroupOn the global environment

Important management issues to be addressed through Sanix Group's corporate
activities and the provision of products and services in order to create a comfortable environment for the next generation

On social systems

Important management issues to be addressed through Sanix Group's corporate
activities and the provision of products and services in order to realize a sustainable society

On companies and organizations

Important management issues to be addressed through Sanix Group's corporate activities and the provision of products and services in order to realize asustainable society■Risks and Opportunities in Sanix Group by Materiality

Selection of focus business area
Residential Environment area
Providing safe, secure and comfortable lifestyles by implementing appropriate maintenance fordetached houses, apartment houses, and other buildings. It also contributes to the eﬃcient useof resources by extending the life of buildings.

Energy area

Gl ob al En vi ron m en t

Materiality

Risks to Sanix Group

Opportunities for Sanix Group

Responding toclimate change

Increased risk of natural disasters due toclimate change
Tightening of regulations in response to
global warming

Expansion of needs that contribute todecarbonization
Acceleration of technology development

Resources and energy
eﬃcient use

Depletion of fossil and natural resources

Expansion of business and acceleration oftechnological development related to energy
saving, resource saving, and resource recycling

Safe water andsanitary environment

Increased health risks due to lack of safe
water and sanitary environment

Expanding needs for hygienic environments,
spaces, and water

Contributing to climate change response and eﬃcient use of resources and energy through the
installation and sale of solar power generation systems and the provision of energy with low
environmental impact through thermal recycling of renewable energy and waste, etc.

Resource Circulation area
Contributing to eﬃcient use of resources, securing clean water resources, and safe and secure
lifestyles by properly disposing of industrial waste, recycling resources, and purifying water
resources through waste liquid treatment.

So cial Syste ms
Co mpanie s andOrganizatio ns
16

Safe, secure andcomfortable lifestyle

Destabilization of life due tointensifying natural disasters, etc.

Resilience improvement business

Improving the reliabilityof products and services

Loss of public trust due to deteriorationin quality, safety, and environmental
performance, etc.

Improve customer satisfaction and expand
business. building relationships of trust withbusiness partners

Community contributions

Impact on business activities due
to loss of credibility

To build relationships of trust with communities and stabilize our business foundation
through with local communities

Collaborationand partnership

Rigidiﬁcation of business domains,decrease of competitiveness

Creation of a variety of businesses that cannot
be achieved by Sanix Group solely

Human resource development
and employment security

Labor shortage and outﬂow
of human resources

Securing excellent talent.
Continuation of smooth business activities

Occupational health& safety promotion

Impact of physical and human damage
on business
Loss of social credibility and long working hours

Ensuring employee health and safety, improving productivity, and enhancing motiva

Decreased competitiveness due toinability
to meet diversifying needs and values.

Securing excellent talentenhancing value creativity through diverse
valuesPromotion of Diversity and
Respect for Human Rights

Building a robust management foundation
ESG (Environment, Social, Governance) Initiatives
Development of human resources, fostering of job satisfaction, employee health, etc.
Management philosophy: "Work is Education and Education is Management"17About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

Value creation process
We will solve social issues by
providing value to our customers and realize a sustainable
society that can pass on a clean
and comfortable environment
to the next generation.

I n pu t(1)Financial Capital (as of March 31, 2022)

In our society

Global trends

・Climate change
・Eﬃcient use of resources andenergy・Safe water and sanitaryenvironment
・Intensifying natural disasters

・Transition to a decentralizedsociety・Progress of digitalization
・Paradigm shift(stuﬀ to things, owner to share,closed to open)

Sanix Group aims to solve the social issues through unique products and services backed by our accumulated know-how, expertise, and network of regional oﬃces. Furthermore, we aim to evolve and deepen our
unique business model of creating common value for "Customers", "Society“ and "Corporation" by proactively promoting collaboration with various partners that have unique strengths, knowledge, andknow-how.

The original business model that creates shared value among "Customers", "Society" and "Corporations."

Value
Diverse Partnerships and Evolution and deepening of business area

・Net assets: 4,732 million yen
・Total assets: 34,953 million yen▶Financial Data ➡See page 72

Make it common“A comfortable living environment
to the next generation”(2)Social capital (as of March 31, 2022)
・HS business: 4 HQs, 53 sites
・ES business: 12 sites
・SE business: 2 HQs, 37 sites
・Environmental resource development
business: 18 sites
・Energy business: 5 sites(3)Intellectual capital

Residential
Environment
Environment

Resource
Circulation

EnergyEnergyUnique products and services created fromthe customer-ﬁrst perspective by utilizing
valuable information (customer feedback) thatcan be obtained from the many points ofcontact with customers. → see p.34~(4)Human Capital(as of March 31, 2022)
Number of employees (consolidated): 2,054[Abundant number of qualiﬁed personnel]• Termite control contractor: 232• Type 1 • Type 2 electrician: 337• Forklift driving technician : 310 etc.

Make it common“Energy with low environmental impact”

Strategy of
A networkof points rooted
in the region

sustainability
Make it common“Recycling resources without abandoning”

growthp. 20〜(5)Natural capital（FY2021）
・Energy consumption: 377 thousand GJ・Water consumption: 295 thousand tons
▶Environmental data ➡See page 62(6)Manufacturing capital (as of the end of March 2022)
・Takeo FactoryTakeo Factory
・Takeo Factory No. 2・Sunrise (Jiashan) Energy Technolog Co.
(Overseas manufacturing base)18

Proposal ability
and problemsolving ability
to meet the needsof customers
and society

Diverseknow-how /expertise

Source of competitivenessManagementfoundation forsustainable growthp. 49〜“Clean and Comfortable Environment
for the Next Generation"
19

About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

Message from the President“Clean and Comfortable Environment
for the Next Generation.”
Sanix Group marks the 47th year of its funding.
Based on our philosophy above we have broadened
our business scope, from houses and urban spaces toglobal environment, until today. I would like to use
this opportunity to describe signiﬁcance of ourbusiness and the direction we aim for, together with
our history and achievements.

Sanix Group Growth Strategy

Sanix Incorporated
Representative board of director, President

Hiroshi Munemasa“Clean and Comfortable Environment for the Next Generation.”
Sanix Group's corporate philosophy is linked to the values of our society.

Message from the President
Transition of management plan and medium-term management plan

In 1975, the Group started out in the sanitation businessthe Next

for general households, and has since expanded its businesswhere it isdomain to include sanitation for businesses, industrial

environment to thewaste recycling, renewable energy, and various otherto use energy with low

environmental impact, and wherebusinesses with the "environment" at its core.

it is common to recycle

resources without abandoning.

common to pass on a comfortable living
next generation, where it is common

Environmental issues such as global warming,

The ﬁnal year of the medium-term management plan

environmental pollution, and resource depletion have now

covering the period from FY2019 to FY2021 has beenreached a stage where measures need to be taken on acompleted.

global scale. This is clearly reﬂected in the SDGs adopted by

In FY2021, the ﬁnal year of the plan, the company was

the United Nations in September 2015, the Paris Agreement

unable to foresee the sharp rise in energy prices, resulting

adopted at COP21 in December of the same year, and thein a signiﬁcant loss in the new power generation business,

Circular Economy Action Plan announced by the European

but it is believed that the initiatives it has taken with an eye

Union (EU).

to the medium- to long-term have produced steady results.

In Japan, starting with the Carbon Neutral

Declaration for the year 2050, various policies have been

In line with our long-term vision (announced in May 2021),

rapidly changing to meet the changing global trends.

which is focused on the year 2030, we will contribute to the

In addition, the global epidemic of CORVID19 caused

creation of a sustainable society in the ﬁelds of "housingmajor social changes, forcing a shift in values andenvironment," "energy," and "resource recycling" throughstructures in various ﬁelds.

our various businesses.

The Group has also had the opportunity to recognize the

We are determined to contribute to the creation of a

Medium-Term Management Plan (FY2019-2021) Overview and Results

necessity and importance of sanitation, our core business,sustainable society in the ﬁelds of " Residential

Value Creation Story

once again.

Environment," "Energy," and "Resource Circulation" throughTopics: Participation in VPP Veriﬁcation Project, now in its 6th year

Nowadays, “creating a sustainable society” become
globally aoureach of our businesses.

common value which, we have been pursuing in

The year 2030 is the target year of the SDGs, and we arebusiness for many years. Based on the corporate

determined to contribute to the early realization of thephilosophy
20

Generation”, our group aims to create a societyof “ Clean and Comfortable Environment forsociety envisioned in the goals of the SDGs.
21

About Sanix Group

Medium-term management plan (2019-2021) and Long-term vision for 2030

employees

The ﬁscal year 2021 marked the end of the ﬁscal year
covered by the medium-term management plan. In our
long-term vision for 2030, one of our targets is to double
our revenue to 100 billion yen, and therefore, we havepositioned the current medium-term management plan as“building a management foundation to support full-scale
growth in the future”. Therefore, in order to build a solid
foundation capable of welcoming various challenges andchanges to ensure sustainable growth, the following six
management challenges have been identiﬁed and focusedon strengthening and promoting initiatives.

In FY2021, the ﬁnal year of the current medium-term
management plan period, a signiﬁcant loss was recorded
due to sharply rising fuel prices, which led to electricity
procurement costs that were far higher than expected.
Consequently, we were unable to expand our ﬁnancial
platform to "build a management foundation to support
full-scale growth in the future". In contrast, however, we
succeeded in promoting priority initiatives, such as
expanding existing businesses and strengthening alliances.
Furthermore, it is diﬃcult to make medium-term forecasts
due to the extremely unstable situation, such as the
disruption of production and logistics triggered by the
spread of CORVID19 infection, the invasion of Ukraine by
Russia, rising energy prices, and also the trend of foreignexchange rates, etc.

①Expand existing businesses by leveraging sales force andcustomer network②Strengthen development of new customers throughalliances, including business partnerships.
③Develop business growth areas in the future throughproactive marketing & resource in new businesses andservices.

Therefore, we have decided to postpone theannouncement of our next medium-term management plan
(FY2022-FY2024) and will announce it as soon as areasonable vision and plan can be formulated.

④Accelerate eﬃciency improvement through investment infacilities and systems.

"Opportunities" and "risks" always coexist in majorchanges. While we will control "risks" by responding ﬂexibly
to changes, we will also grasp "opportunities" to achievesustainable growth.

⑤Reinforcing our team as experts to improve customer
satisfaction by securing and training human resources⑥Creating highly motivating work environment for the■Sanix Long-term Vision 2030 (announced on 24 May 2021)
Residential
environment

Toward a society where it is common to pass on “a comfortable living environment to the next generation”
Increase in personnel × Expansion of area × Diversiﬁcation of sales methods× Expansion of customer service
Building a system that enables us to make optimal total proposals tailored to the customer's life cycle and building conditionby leveraging the strength of our business model of periodically checking the condition of buildings for both detachedhouses and apartment buildings.

EnergyIncreasing need for renewable energy × Cost reduction for solar power generation and storage batteries＋①,②① MaintenanceIn addition to manufacturing and installation, build a system that can② Reuse and recycling
support all aspects of operation, including maintenance, reuse and recycling
technology developmentof power plant equipment and components.

Resource
Circulation

Toward a society in which it is a common to pass on "recycling resources without abandoning"
Increase in the amount and types of materials received (entrance) ⇔ Advancement of sorting andseparation ⇔ Diversiﬁcation of recycling applications (exit)- Diversiﬁcation of recycling applications for waste plastics (material and chemical recycling in addition to thermal recycling).
- Development of technology for the separation of sludge and oil generated during the treatment of waste liquids and theirconversion into fuel (transition from waste liquid treatment to fuel production).

Net sales

22

FY2021 (actual)

FY2030 (target)
Year ending March 2031

50.93 billion yen

100 billion yen

Operating proﬁt(Operating proﬁt to sales) −2.61 billion yen（−5.1％）

10 billion yen（10%）

Net proﬁt for the year

−3.44 billion yen

7.2 billion yen

ROE−54.0%

17%

ROI−14.6％

15%

Growth Strategy

Response to global warming

Coping with resource depletion(realization of a decarbonised society)(realization of a circular economy)

Towards a sustainable society"Clean and Comfortable Environment
for the Next Generation"

Management Foundation

Data Section

From houses to buildings and condominiums:"Linking Comfortable Living Environments to the Next Generation".
Our ambition is to create a society where the concept of along, comfortable and secure home is taken for granted andpassed on to the next generation.
The cornerstone of Sanix Group is Home Sanitation (HS)business, which specialized in termite disinfection andother services to residential customers. At the time of thecompany's founding, it was common for the industry todeal with termites only after they had occurred, but wewere able to uncover latent demand by explaining thenecessity of prevention, early detection and earlycountermeasures before things got worse, which led us
establish our leadership position in the market.
Until today we conducted termite disinfection sense to820,000 houses and expanded our services to measuresagainst humidity and earthquakes, to serve comfortable
and long-lasting houses.
The life-time of the house from construction tieddemolition in Japan is around 40 years, which issigniﬁcantly shorter than those in western countries(according to the Ministry of Land, Infrastructure,
Transport and Tourism). Due to the fact that recently,
however, peak-out of population in Japan, as well asawareness of importance for saving natural resources andreducing environmental impact. Long lasting houses withproperly maintained become more important thanrebuilt.The Basic Plan for Housing and Living Standards(updated in March 2021) also states the goal of "building a
housing circulation system" in which the existing housing
stock is traded across generations. The same concept
applies to condominiums and other housing complexes.
In this business area, in accordance with the medium-term
management plan, we have focused on marketing for new
customers by increasing the number of sales forces
enhancing employee education and strengthening allianceswith business partners. We strengthened business alliancewith many companies such as agricultural cooperatives,
consumer cooperatives and mutual aid associations, realestate and construction industries, and retail businesses,
through introduction of our residential services to theirmembers and set up relationships with managementcompanies for buildings and condominiums, etc. Currently,
the number of our business partners has increased by 10times in the last 6 years.

Toward a society where it is a common to pass on "energy with low environmental impact"

Year ending March 2022

Value Creation

To provide a more community-based andcustomer-oriented service, we continue to actively increase
the number of staﬀ and open new sales oﬃces. Currently,
we have 53 sales oﬃces for HS business, mainly in west
part of Japan, and 12 sales oﬃces for ES (Establishment
Sanitation) business (as of March 31, 2022). We plan toexpand our sales area nationwide, with 100 sales oﬃces in

HS business and 25 sales oﬃces in ES business, mainly inregional big cities.
There are approximately 30 million detached wooden
houses and more than 2 million apartment buildings inJapan (Ministry of Internal Aﬀairs and Communications /2018 Housing and Land Survey). However, we believe that
housing needs will become more diverse due to increasing
number of vacant houses as well as the declining birthrate,
aging population and of peopleʼs lifestyle.
In addition to the maintenance and management of
housing, Sanix Group will expand the scope of our services,by making timely proposal to our customer in accordance
to their lifestyle, and their needs. We will contribute tocreate a society where high-quality housing stock is tradedand passed on from generation to generation.
Hygiene management business is also one of thefoundations of our business. Together with ourmaintenance service and management business of theliving environment. The scope of this project is not limited
to the residential environment, but extends toaccommodations, commercial facilities, and manufacturing
plants. In June 2020, the "Revised Food Sanitation Law"
will be enforced, requiring all businesses that handle foodproducts to adopt the concept of sanitation management
methods called "HACCP" in principle. The level of hygiene
required is increasing and is now considered to be a qualityof service in itself.
The Sanix Group will respond to the demands of the times
by providing support services for the introduction andoperation of sanitation management in line with HACCP.
The epidemic of CORVID19 infection has served as anopportunity to reconﬁrm the importance of "sanitation
management.
Sanix Group has been involved in contingency planning
service for natural disasters such as earthquakes andtorrential rains, as well as outbreaks of viral diseases suchas foot-and-mouth disease. We will continue to promotehygiene management business to meet the needs in society.

During the restoration work
(January to March 2021) at anelementary school (Kokonoe-machi,
Oita Prefecture) damaged by thetorrential rainfall in July 2020, wewere in charge of sterilizing theunderﬂoor of the school building andgymnasium. Eight contractors
involved in the restoration work
received letters of appreciation fromﬁrst- and second-year students andtheir teachers.

23About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

Realization of a decarbonized society from both the supply and demand sides of energy

Our ambition is to create a society in which "energy withlow environmental impact" is chosen and used as a matterof course.
The energy-related business of Sanix Group was derived
from the development of our environmental sanitation
business. We are engaged in energy businesses with low
environmental impact, one of which is solar power
generation on a representative form of renewable energy.
Our history with solar modules goes back to 30 years ago.
We introduced solar modules in 1989 as a power source
for under-ﬂoor ventilation fans which is one of our products
handled by HS business. At that time solar modules were
not widely used yet. But until today, we have installed over
300,000 solar modules. Our track record of introducing
solar modules to the world at an early stage led to thelaunch of our solar power generation business in 2009. In
developing the Solar Power Generation business, we haveplaced the provision of " high-quality products at acompetitive price" at the core of our business, based on the
belief that "solar power will not become popular unless it isless expensive than the cost of electricity". Sanix Group was
the ﬁrst company that introduced foreign-made solar
modules to the Japanese market. In 2010, we established a
production site in China to manufacture solar modules,
thereby establishing a total integrated system that covers
from manufacturing, sales, design, installation tomaintenance business. We have been striving to reduce
costs and improve quality, while pursuing higher level ofsafety and convenience for our customers. Since the start ofthe business, we have sold and installed more than 48,000
residential and industrial systems, and our total sales
capacity, including wholesale sales, exceeds 1.4.GW(1.4million kW), which is equivalent to one nuclear power
plant (as of March 2022).
Renewable energy has been positioned as a main powersource in the national policy. In order to achieve carbon
neutrality by 2050, we need to further increase the share of
renewable energy in the power supply mix. We believe that
solar power generation is essential source in future society,thus, it needs to be widely used. Sanix Group also believes
that the spread and expansion of solar power generation
has just begun, and we will continue to play proactive rolein the market and society.
With the increase in electricity prices and the decrease in
the purchase price of electricity generated under the FIT
scheme (Feed-in Tariﬀ Scheme for Renewable Energy), it istime for solar power generation to shift to "use" rather than"sell", in other words, "self-consumption". Although, it has
spread become of merit of selling electricity, it should
spread without relying on favorable treatment bygovernment.
We believe that it will the industry can become
self-sustaining when it becomes the energy of choice forpeople without subsidies or preferential policies. At present,
Sanix Group is promoting proposal activities of our solar
power generation systems to shops, oﬃces, factories andother business owners, in which electricity generated bysolar power is consumed at their sites own.

It is needless to say, the solar power business does not
end with the installation. In order for renewable energy tofunction as a main source of power, each solar power plantdispersed throughout Japan needs to maintain sustainable
operation as if they were “a single power plant”.
Furthermore, as solar power generation becomes morecommonplace in society, the disposal of equipment afterend of its useful life, will become critical issue. In addition
to reinforcing the appropriate maintenance service for
installed power plants, Sanix Group has also started
research and development into the reuse, recycling, andproper disposal of solar power generation, which become
necessary in the near future.
Besides, since 2017, we have been participating in the
Ministry of Economy, Trade and Industry's Virtual Power
Plant* construction demonstration project. The maindrawback of solar power is that the amount of electricity
generated is dependent on the weather, which makes it
impossible to adjust the power supply.

■ Expansion of total service for solar power generation
Development and manufacturing
Sales
Construction
Upcoming initiatives
Electricity trading(retail - purchase - non-fossil value trading - PPA - VPP)

Additional equipment(storage batteries, panel replacement)

Maintenance(warranty, remote monitoring, paid maintenance)

Reuse - Recycle

Taking advantage of its in-house capabilities from design toconstruction, the company is also promoting the introductionof solar power generation for its own facilities (left: Ota Plant= Plastics Resource Development Plant/right: General Training
Center).As the introduction and ownership of solar power
facilities and the methods of supplying electricity from them
become increasingly diversiﬁed and sophisticated, we intend
to utilize our own experience in the solar power generation
business as a model case for self-consumption solar power
generation.

24

Browse screen of Sanix Eye

Maintenance demand is
expected to increase. The
remote monitoring (webmonitoring) service "Sanix
Eye," launched in 2015, isalready in use at
approximately 10,000 solar
power plants.

Therefore, to realize virtual power plant helps to meet thisdrawback and gives momentum to the spread of solar
power generation. We believe that transforming theunstable electricity produced by installed solar power intoreliable and stable electricity that can support our daily
lives become major step forward to realize decarbonizedsociety. We will continue to work for implementation of
Virtual Power Plants in our society.
＊Virtual Power Plant (VPP): A system in which dispersed
small-scale power generation and storage facilities, such as solar
power generation, storage batteries, and electric vehicles installedat home and factory, are collectively controlled by information
technology as if they were a single power plant (seepages 46).

On the other hand, in 2001, in the year of theestablishment of SANIX ENERGY INCORPORATED, theGroup that operates the Tomakomai Power Plant（See page43）, SANIX ENERGY became the 8th company in Japan
registered as a "Power Producer and Supplier (PPS)",aiming for starting electricity retailing business in the
future, and began wholesale of electricity they generate.
Later, in 2015, we launched a full-scale electricity retailingbusiness, oﬀering a premium purchase service (thepurchase price is a certain amount added to the FIT
purchase price) for solar power generation to boost of solar
power sales. In 2016, following the complete deregulationof electric power retailing, With the exception of Okinawa
Electric Power Company's service area, we are ready tosupply electric power to factories, oﬃces, and households
throughout Japan.
The SANIX Group's electricity retailing is characterized byits solar power generation facilities sold and installed in thesolar power generation business, and its Tomakomai Power
Plant, which was certiﬁed as a non-fossil power source in
2020, a source and supplier of CO2-free electricity.
Taking advantage of this feature, in April 2021 we added
an environmental value option menu for electricity andbegan supplying CO2-free electricity. However, just as thiswas about to happen, a sharp rise in the market price ofelectricity led to an increase in electricity procurement
costs, which resulted in a signiﬁcant loss. In response, we
shifted our business structure to minimize market risk.
In the electric power retailing business, we have decided
to reduce the scale of the business and aim to createsynergies with other businesses (e.g., solar power
generation business) by strengthening the functional
aspects of the business. The Group will strive to create anenvironment in which "energy with low environmental
impact" is taken for granted from both the supply anddemand sides, by creating a mechanism to deliver
renewable energy to customers while expanding the use ofrenewable energy sources for the realization of adecarbonized society.

25

About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

Transition to a circular economy and a decarbonized society,and to a "Non-Disposable" society.
Our ambition is to create a society that "recycling
resources without abandoning" are common values. In
recent years, the shift to circular economy has become acentral issue for sustainable development, along with adecarbonized society. The circular economy is a conceptthat aims to realize resource circulation through recycling,reuse, reproduction, resource-saving product development,
and sharing, rather than a unidirectional ﬂow ofprocurement, production, consumption, and disposal. In
the part the arterial industry had driven economic growth.
Nowadays, the vine industry, which treats and recycles
waste properly in the circle of circulation, holds more
important position in our society.
F or our resource recycling business. "Resource recycling
power generation is one of core business"(see page 43) .
This unique business involves the recovery of end-of-lifeplastics, their conversion into fuel, and the generation ofelectricity from that fuel. And this resource recycling
power generation is one of the main sources of power
generation for our energy business mentioned above.
The start of our plastic recycling business was triggeredby the fact that we caught the need for waste treatment
while providing hygiene management for businesses. In
1994, the company entered the intermediate treatment ofindustrial waste. In the course of incineration*, we noticed
the high calorie content of plastics, which led us to the fuelconversion business and a power station business to utilize
them as fuel.
When we started the business in early 2000s, half of thewaste plastic generated nationwide was simply incinerated
or disposed of in landﬁlls. Around 86% of waste plastics is
eﬀectively used (Japan Plastic Recycling and Reuse
Association) today (FY2020).
Approximately 4.13 million tons of industrial waste
plastic is discharged annually, of which 2.53 million tons,
or 61%, is thermally recycled (energy recovery) in Japan.
(see above). 300,000 tons of waste plastic are collected by
us at 15 factories nationwide, and produce 200,000 tons offuel of which 150,000 tons are used annually as fuel at the
SANIX ENERGY Tomakomai Power Plant (our subsidizing),
in Tomakomai City Hokkaido. The amount of electricity
generated is equivalent to the electricity consumption of
about 55,000 ordinary households, meaning that fossil
fuels are not needed to generate this amount of electricity.
In addition, this power plant has been certiﬁed as a
non-fossil power source since FY2020, and we have begun
trading the environmental value of non-fossil electricity.
The problem of waste plastic is attracting attention
worldwide, including marine pollution caused by waste
plastic. As a solution to this problem, we will pursue further

traps* and marketing it as an alternative fuel to heavy oil.

customers, and we intend to expand our facilities gradually.

In 2020, we will also begin a full-scale feasibility study on
the conversion of waste sludge into fuel and are preparing
to oﬀer it to consumers as a fuel for biomass power
generation. The conversion of waste liquids into fuel will
also make it possible to expand the range of acceptablewaste liquids, such as those containing large amounts of oiland sludge.

We would like to position ourselves as a "fuelmanufacturing plant" and "raw material plant" rather thanjust a waste treatment facility for both plastics and waste
liquids.

In November 2021, "Recycled Oil Bi-Oil" was selected as
one of the "2021 Kitakyushu Eco Premiums. This is a
program in which Kitakyushu City in Fukuoka Prefecture
selects products and services that have a low environmental
impact.
Since then, we have received numerous inquiries from

Just as the human body has "arteries" and "veins,"
industrial activities would not be possible without the"venous industry," which puriﬁes waste and returns it tonature.
Both resource-recycling power generation and liquid waste
treatment promote the recycling of resources, and at thesame time contribute to the construction of a de-carbonizedsociety.
*Grease trap: A grease separator that separates and collects grease
and food scraps contained in kitchen wastewater.

■The transition from liquid waste puriﬁcation treatment to recycled fuel production.

contribution measures including the expansion of theTomakomai Power Plant, the search for the next power
plant, the development of fuel sales, and the developmentof plastic recycling methods other than thermal recycling.
In April 2022, the Company launched the “SANIX system,”a centralized management system for disposal operations.
The system was supervised based on the knowledge gained
from our involvement in waste management and isequipped with functions necessary for customers. The
system supports the proper and eﬃcient execution ofoperations, from management of collection requests anddisposal status to data usage and thorough compliance. Inturn, visualization of waste-related operations will beeﬀective in identifying and improving issues, such as cost
optimization and promotion of environmental management.
By providing this system, we intend to contribute to theconstruction of a sustainable society through the reductionof CO2 emissions by optimizing the frequency of collection
and transportation and disposal methods, as well as thepromotion of resource recycling through sorting.
In the ﬁeld of resource recycling, we are also working onan organic liquid waste treatment business (Hibiki factoryin, Kitakyushu City, Fukuoka Prefecture). Since 2000, we
have been purifying more than 100,000 tons of sludge andwaste beverages discharged from food factories by
microbial treatment. Currently, our customerʼs locations
are widespread to Kansai area and Kanto area.
In addition, this business is not limited to mere treatment,
but also promotes the recycling of oil and sludge fromliquid waste into fuel. In the future, we intend to shift to aplant where fuel production is the main process. In 2018,
we started manufacturing "Recycled Oil Bio," recycled oil
produced by separating and recovering oil from grease"Recycled Oil Bio," which is produced by separating oil
content, was selected as a "Kitakyushu Eco-Premium in
FY2021" as a product with low environmental
impact.Kitakyushu exhibited and promoted its products inbooths at environment-related exhibitions such as the"Resource Recycling Expo" (March 2022).

Conversion of sludge generated in the
puriﬁcation process into fuel, for which
demonstration tests are being conducted.
Sludge left over from the dehydration of organic
wastewater is desalted, dried, and recycled as a solid
fuel to replace fossil fuels.

Human eesource development to support our businessWe believe that the quality of each individual engaged inthis work is directly related to the quality of our services, so
we have been focusing on employee education since thebeginning of our company, based on our management
philosophy that "work is education and education is
management.
We established its own training center and a department
for employee education in its seventh year of operation.
Since then, we have consistently considered thedevelopment of human resources to form a group of
experts with a sense of mission, motivation and a wealth of
specialized knowledge as one of our challenges, and wehave been working on human resource development byconstantly renewing our training programs.

As it is diﬃcult to conduct group training due to thepandemic of COVID-19, New methods, such as online-based
training, are being introduced as we move forward. In
addition, we believe that to provide good service thatsatisﬁes our customers, it is essential to have a work
environment where employees can work energetically.
Therefore, in addition to employee training, we also strive
to create a pleasant work environment.
We will contribute to the creation of a comfortableenvironment for the next generation by striving fortechnological innovation and the development of highvalue-added services while placing importance on thesafety, health, and compliance of our employees.

※Industrial waste intermediate treatment (incineration) factory …Kitakyushu factory. Transferred to the 3rd party in 2007.

26

27

About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

Transition of management plan and Medium-term management plan

〜FY2013

FY2014〜FY2016

FY2016〜FY2018

FY2019〜FY2021■Changes in business performance and management plans
Net Sales（Million yen）

■HS

■ES

100,000

■SE

■ERD

■EB

Operating income（Million yen）

Operating income

6,000

95,62984,221

14,735

4,508

80,0004,000
16,05160,0002,791

61,916
72,2471,870

43,36650,955

14,601

51,340

1,036

40,00014,96720,00026,225

3,965

6,011

14,814

10,8180
FY2012（2013/March）

FY2013（2014/March）

Commercialization of renewable energy
rapid growth

10,26813,003

14,706

14,467

16,97914,427

15,195

10,5848,780

0-2,000△2,618

1,926

2,261

2,351

2,487

7,605

10,752

11,235

11,54912,421FY2014（2015/March）

FY2015（2016/March）

FY2016（2017/March）

FY2017（2018/March）

FY2018（2019/March）

FY2019（2020/March）

FY2020（2021/March）

FY2021（2022/March）

Medium-term management plan
"Sunshine Plan 2016"(FY2014-FY2016)a growth scenario that positions the solar power generation business,

power generation equipment (currently SE business).

resource recycling power generation business and electricity retail /wholesale business as our core businesses, and conducts aggressive
capital investment, recruitment, and research and development toensure competitiveness.

In the year following the launch of the business (FY2013), it became a

However, in September 2014, just after we had implemented this

rapidly growing business accounting for 60% of the company's total

medium-term management plan, the market environment surround-sales.

ing the solar power generation business changed dramatically aselectric power companies stopped reseponse to new application forgrid connection contracts for renewable energy all of sudden, there
after FIT system was signiﬁcantly revised. As a result, in February 2015,
we withdrew our medium-term management plan and decided torestructure our business.

28

10,463

1,444
8,922

launched a new business, the sales and installation of industrial solar

human resources and the price advantage of our own solar modules.

9,132

1,033
6,562

In May 2014, we formulated and announced the "Sunshine Plan 2016",

expertise in residential solar power generation system installation, our

10,609

924
6,519

1,040

With the introduction of the Feed-in-Tariﬀ (FIT) law in July 2012, we

We succeeded in launching this new business by leveraging our

17,870△2,229△3,142

49,41650,936

21,75539,871

9,617

52,531
1,224

1,246

17,1332,000

50,71949,9932,325-4,000Medium-term management plan

Medium-Term Management Plan

(FY2016-FY2018)(FY2019-FY2021)( Released on May 14, 2019 )【Overview】
Medium-term management policy: "Transition to sustainable and stable
management"
In the midst of rapid changes in the business environment, in considerationof the future market environment, we reviewed the cost structure andimplemented a management system that can generate sustainable andstable proﬁts.
(1) Balanced redistribution of management resources between businesses(2) Strengthening the management foundation through rationalization(3) Strengthening the corporate governance system【Looking back】
Based on the market environment in each business, we have established asystem that enables us to make proﬁts in each business by allocating
personnel ﬂexibly in a timely manner. In addition, while strengthening themanagement foundation through various rationalizations such as store
consolidation, asset reduction, and cost reduction, we are also working tostrengthen governance by increasing the number of outside directors.

To establish a platform for growth, we worked
on our basic policy of taking on the challengeof new initiatives while strengthening andexpanding existing foundations.
In the HS, ES, and Environmental Resource
Development business divisions, weestablished stable earnings foundations.
On the other hand, in the energy businesssector, which was planned as a growth-driving business, business risks increased morethan expected, making it diﬃcult to ensure
proﬁtability.
We have revised our business structure tominimize the impact of market risks.
→For details, please refer to page 30.

29

About Sanix Group

Outline of medium-term management plan (FY2019-FY2021)

Value Creation

Growth Strategy

Management Foundation

Data Section

Results of the Medium-Term Management Plan (FY 2019-2021)■ Positioning of roadmap and medium-term management plan for achieving our companyʼs vision■ Plan and results（Million yen）

FY2019-FY2021
Target period of
the medium-term
management plan

FY2022-FY2024

Appearance 2030

After FY2025

Realize the future ahead ofschedule through experienceand new challenges.

medium-term management plan

Results（Arrows indicate plan ratio）

FY20192020/MarchFY20202021/MarchFY20212022/MarchFY20192020/MarchFY20202021/MarchFY20212022/March

Amount of sales

50,90053,66059,41052,531

49,41650,936

Operating income

1,910

1,940

2,360

2,791

2,325

△2,618

Ordinary income

1,810

1,840

2,260

2,592

2,091

△2,900Net income attributable to owners of the parent

1,370

1,330

1,710

1,850

1,965

△3,449【Our position in society】
A top runner who leads the construction of asustainable and comfortable environment-friendly
society.

*The "Accounting Standard for Revenue Recognition" has been applied from the results of ﬁscal year 2021 (ended March 31, 2022).

Establishing a growth
foundation
While strengthening andexpanding the existing
foundation, we will take on
new challenges and gain afoothold for growth.

Evolution tosustainable growthTake new initiatives on track,
improve the value of the
products and services weprovide, and establish ourpresence.

We aim to be the top in each ﬁeld
by improving the environmental
friendliness, comfort, andeconomy of the products andservices we provide.

Corporate philosophy "Clean and Comfortable
Environment for the Next Generation"■ Major issues in the medium-term management plan

Basic policy
Strengthen and expand existing foundations,and try new things to gain a foothold for future
growthImprovingcustomersatisfaction

Rewarding •Improvingwork
satisfaction

Strengtheningthemanagement

・Expansion of existing businesses by leveraging ourstrengths of sales force and customer network
・Development of future growth ﬁeld by proactively
engaging in new businesses and services

・Creating an environment where employees canwork with high motivation
・Evolution to a group of specialists and training andsecuring of human resources to provide services
that satisfy customers

・Promotion of labor saving and eﬃciency improvement for operations by investing in equipment andinformation technology

make it common“ A comfortable living environment islinked to the next generation”

Realization ofdramatic growth

make it common“Recycling resources without
abandoning ”

Amount of sales■Plan

50,90052,531■Plan

53,66059,4102,791

50,93649,416（Million yen）

■Act.

1,910

1,940

2,325

2,360

make it common“Energy with low environmental impact”

FY20192020/March

Vision "To become a leading company in the environment
and energy"

FY20192020/March

Ordinary income■ Relationship between social trends andour business domain
Make it common“Energy with low environmental impact”
Main power source forrenewable energy,
distributed powersource, self-consumption, microgrid, VPP

FY20202021/March

2,592
1,840

1,810

FY20192020/March

2,091

FY20202021/MarchFY20212022/MarchFY20202021/MarchFY20212022/March△2,618Net income attributable to owners of the parent （Million yen）

（Million yen）

2,260
1,370

1,850

FY20192020/MarchFY20212022/March

1,330

1,965

1,710

FY20202021/MarchFY20212022/March

EnergySE Div.
EB Div.

Residential
Environment
HS Div.
ES Div.

Make it common“A comfortable living
environment is linked to
the next generation”
Appropriate maintenance andpreservation, long-life quality
housing, securing housing stock,formation of Pre-owned housing
distribution market■Plan

Resource
Circulation△2,900■Act.

ERD Div.

2,500

Basic Environmental Plan,
Promotion of Recycling-Oriented Society,
Plastic Resource Recycling
Strategy

2,134
27
2,000

412

2,179
2,008
27

27
388

399

2,292
2,027
25

785

722

827

409
72

0

304

122
397
44
297

390

2,054
19

■SE, HS, ES Business management department

325■SE (Manufacturing, sales, and installation ofsolar power generation systems)

919
784

734

■HS (Services for residential houses)■ES (Services for corporations and business owners)

1,000

125

27

332

1,500

500

Makes tomorrow “common” today.
Accelerate the shift in values.

△3,449Number of end-of-period staﬀ

3,000

Make it common“Recycling resources without abandoning them”■Plan ■Act.

■ Transition of human resources

FY2019（2020, March）
Left：Plan/Right：Act

30

Operating income（Million yen）

■Act.

141

136

153

146

■ERD (Waste recycling)

414

426

■EB (Electricity retail and energy business development)

81

417
82

432

78
304

293

304

70
278

■Headquarter

FY2020（2021, March）
Left：Plan/Right：Act

FY2021（2022, March）
Left：Plan/Right：Act

31

Oil in storage tanks
About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

Results of the Medium-Term Management Plan (FY2019-2021)("Key Objective")
The Medium-Term Management Plan sets forth six management targets. The following is a report on the resultsof these tasks.
■Progress on management targets(1)Expand existing businesses by leveraging our strengths in sales and customer relationships

Customer Satisfaction Improvement

The Company achieved progress in establishing a stable revenue base by securing human resources and opening
new oﬃces in existing businesses.In the HS business segment in particular, during the period of the current medium-term management plan, we have increased the number of sales oﬃces by 8 and the number of staﬀ by 145 tostrengthen our sales force even further.The number of customers increased to 119,883 (+12,917) as of March 31, 2022
(compared to March 31, 2019).(compared to the end of March 2019).

120,000

51
800

44
600

45

550

564

95

97

400

235

245

220

222

46

47

47

641

653

673

111

119

117

262

272

48
660
124

268

118,000
50

709

709

139

143

268

271

284

268

297

112,000

20

106,966

108,000

FY2019FY202010

2018,Sep 2019,Mar 2019,Sep 2020,Mar 2020,Sep 2021,Mar

FY2021FY2018Sediment
Eﬀective use of ﬂoating
oil in grease traps*.Oil-water separation inhibition collector.

(4)Promotion of labor saving and eﬃciency improvement of equipment / system investment, etc.

105,924

104,000

100,000

Waste Liquid

109,131108,278

102,000

2018,Sep 2019,Mar 2019,Sep 2020,Mar 2020,Sep 2021,Mar 2021,Sep 2022,Mar

FY2018111,767

110,000

269
30

294

114,073

114,00040

276

116,941

116,000

106,000

200

0

263

53

119,883

Oil

Recycled oil

60

1,000

By separating and recovering only theoil content from liquid waste (industrial
waste) generated by restaurants, we
produce and sell recycled fuel (productname: recycled oil Bio) that can be used
as an alternative to fossil fuels.
This is a carbon-neutral fuel with zeroCO2 emissions.
It can also be used as fuel for biomass
power generation.

Reﬁﬁning Process of Recycled Oil Bio

Filtration（Person）■Conversion of organic waste liquids
into fuelSeparates and removes
suspended solids, etc.

（Sites）* Third-party owned model (PPA): A PPA operator installs a photovoltaic power generation system on the roof of a consumer's (third party) house andsells the self-consumed power consumption of the photovoltaic power generation.

Oil/ Water Separation■ Number of technicians
Number of sites

We developed businesses that will lead to growth, such as a business for converting waste liquids into fuel and acentralized management system for disposal operations.However, with regard to energy-related businesses, weundertook eﬀorts to create business models through alliances with other companies, such as a third-party ownershipmodel for solar power generation (PPA)*, but the response was slower than anticipatedSeparates and removes
sludge, etc.

（Person）■ Number of clerks■ Number of sales staﬀ

■ Changes in the number of customers in the HS division

Customer Satisfaction Improvement

Oil in storage tanks■Changes in the number of sites and employees in the HS division(3) Setup new businesses and services

FY2019(2) Strengthen the development of new destinations with closer alliances,including business alliances with corporations

FY20202021,Sep

2022,MarFY2021

Customer Satisfaction Improvement

We have also actively pursued business partnerships with corporations to expand our contact with customers. As of March
2022, we have 368 business partners.

Investments under the current
medium-term management plan
include the upgrading of infrastructure to improve operationaleﬃciency, such as the renewal of
facilities and core systems in theenvironmental resources development business.We plan to invest
for further growth in the future.

Strengthening of management foundation■ Changes in investment costs（Million Yen）

■ Existing: Maintenance

3,083

3,500

2,742

3,000

60

184

2,500

317

and repair

2,776■ Existing: Strengthen andimprove eﬃciency

151
1,033

577

■ New

2,000
1,500

1,080

1,000

56
172

500

2,242
1,990

2,048

852

0
FY2018FY2019FY2020
FY2021（2019,March） （2020,March） （2021,March） （2022,March）■Changes in the number of partners"Examples of business partners and details of business partnerships“（Number of business partners）

400

332

350

289

300
250

368

307

▶Cooperatives of companies / organizations▶Service company (as a customer service menu for moving companies,
services for members, etc.)▶Real estate agent

Management Philosophy: “work is education and education is management”. In order to improve the quality of
our services in response to changes in the social environment and the sophistication of our customers' needs, we areconstantly developing our human resources.
➡See page 50. While we have achieved results in securing human resources, we are only halfway through our eﬀorts
in human resource development, and we will continue to work on this as an ongoing issue.

161
118

(6) Creating an environment where employees can work with high motivation

Information on our services

100
50

・Housing service to start termite disinfection

0・Services for businesses, including equipment maintenance measuresfor condominiums (diagnosis of water supply and drainage equipment)
2018,Sep 2019,Mar 2019,Sep 2020,Mar 2020,Sep 2021,Mar 2021,Sep 2022,Mar

FY201832

Improvement in motivation and job satisfaction▶ Local government staﬀ mutual aid association / mutual aid association▶Company (as a welfare menu)

219

200
150

349

(5)Evolution to a group of specialists and training /securing of human resources to enhance customer satisfaction

FY2019FY2020

FY2021

etc.

Improvement in motivation and job satisfaction

We have established a mentoring system to support new graduates and a retirement age selection system thatallows employees to choose the retirement age that best suits their personal life plans. We are only halfway
through our eﬀorts to create a better work environment, and will continue to address this as an important issue inthe future.
33

About Sanix Group

Value creation story in the Residential Environment segment（HS: Home Sanitation Business）

Value Creation

Growth Strategy

Management Foundation

Data Section■ Act.

（Million yen）

Medium-term management plan
FY2016
Act.

Amount of sales（Year）International Comparison of Housing Life Span100

The lifespan of Japanese homes (the average number of years since demolishedhomes are built) is approximately 40 years, which is considerably shorter than inEurope and the United States. Wood decay and termite damage caused bymoisture are one of the factors that shorten the life of a house.
We have been enlightening the necessity and importance of home maintenancefrom a preventive point of view from the beginning, when it was common to takemeasures after suﬀering damage. Housing seen assets recording as a value. Goingforward, we will continue to strive to maintain the comfortable living of ourcustomers and the asset value of their homes, we will continue to work on
maintaining the comfort of our customers' lives and the asset value of their homes
based on our track record and experience with over 800,000 homes constructed.

40

Japan

US

UK

（data:2013, 2019）(data:2013, 2018)

+4.9%
+6.4%

+150

+2.2%

11,5497,083

12,421
7,667

Gross margin

50.1%

55.4%

59.3%

60.1%

61.3%

61.7%

Operating income

979

1,471

2,231

2,061

2,248

2,382

Operating margin

14.9%

16.5%

20.8%

18.4%

19.5%

19.2%

■ Sales / Operating income margin by product15,000■ Number of personnel / Number of new orders■ Other■ Foundation repair / house reinforcement work
■ Underﬂoor / attic ventilation system■ Termite control construction operating proﬁt margin
Operating income margin

10,752
8,922
14.9

6,562
5,000

2,410
1,249

16.5

2,159

By extending the life of the building,the generation of constructionwaste and the consumption of new
resources can be suppressed.

3,308
3,384

3,081
2,126
1,957

（%）
30

18.4
1,881

11,549

25

19.5
1,759

500

19.2

1,799

2,497

3,441

3,547

3,141

15

10
200

3,568

550

3,641

5

100

259

364
298

199

179

5,486

12,000

275
271

8,000

234
6,000

266
2,499

565
10,606

10,000

8,896

8,337

400
300

2,965

449

20
2,054

（Orders）
14,000525 10,472

3,584
3,256

（Average during the period：person）
700■ Technical job■ Sales / Customer manager
600
Number of new orders (cases)

1,254

743

0

11,23520.8

10,000

Customers

We provide a safe, secure and comfortable life withmaintenance methods that take preventive
measures against factors that impair the durabilityof homes, such as humidity and termites.

+1,668+1,295

11,235
6,746

Source: Ministry of Land, Infrastructure, Transport and Tourism
2021 Housing economy-related data International comparisonof average age of lost homes

Local community /Global environmentSanix

VS FY2018
Dif.(△)
Average growth(%)

12,421（data:2013, 2018)

Value creation model (value to be provided)

FY2021
Act.

10,752
6,371

38.2

0

FY2020
Act.

8,922
4,947

55.9

20

FY2019
Act.

6,562
3,285

（Million yen）

78.8

FY2018Act.

Gross proﬁt

80
60

FY2017
Act.

279

290

4,000

215
165

2,000

119

2,628

FY2016FY2017FY2018FY2019FY2020
FY2021（2017/March）（2018/March）（2019/March）（2020/March) （2021/March）（2022/March）

00

0
FY2016FY2017FY2018FY2019FY2020
FY2021（2017/March）（2018/March）（2019/March）（2020/March)（2021/March）（2022/March）

Topic
New openings - 8 new oﬃces in 3 years

Main products and services <Home Sanitation (HS) Business>
Termite control system
Our staﬀ, who are well versedin the habits of termites, willtake appropriate action fromprevention to extermination.
Our expertise, know-how andafter-sales service will protect
customerʼs home from termite
damage.

Foundation repair work
Aramid ﬁber sheet isattached to the surface ofthe foundation concretewith epoxy resin to form
ﬁber reinforced plastic(FRP), which repairs cracks
in the foundation andcontributes to suppressing
the progress of deterioration.

34

Underﬂoor / attic ventilation system
Solar-powered underﬂoor andceiling fans remove moisturefrom underﬂoors and ceilings andcreate an airﬂow path. Diﬀusionfans and under-ﬂoor humidity
control materials are alsoavailable to increase ventilation,
improve comfort and increase
the durability of housing.

House reinforcement system
Sanix's unique system that
improves the earthquake
resistance and durability ofhouses by reinforcing the main
joints under the ﬂoor andunder the ceiling withhardware. We have shortened
the construction period
without performing large-scale
exterior wall construction.

The HS Division is aggressively opening new openings to enhance customer service and improve operating eﬃciency (productivity). From FY2019 toFY2021, we opened 8 new oﬃces. We will strive toexpand the number of customers while strengthening
the foundation of our existing business.

March 201945

+8

March 2022

53

■New openings (April 2019 - March 2021)

Home remodeling
We provide comfortable
remodeling that suits yourlifestyle and needs, from
improving the surroundingsof water and making it
barrier-free, refreshingexterior walls, roofs, cloths,etc., and seismic repair
work.

Opened in April 2019

Karatsu Sales Oﬃce (Saga Prefecture)

Opened in February 2020

Omura Sales Oﬃce (Nagasaki Pref.)Opened in January 2021

Iwakuni sales oﬃce (Yamaguchi prefecture)

Opened in May 2021

Amakusa sales oﬃce (Kumamoto)Opened in May 2021

Niihama sales oﬃce (Ehime)

Opened in September 2021

Takeo sales oﬃce (Saga)

Opened in November 2021

Yawata sales oﬃce (Fukuoka)

Opened in December 2021

Fukuoka Nishi sales oﬃce (Fukuoka)

35

About Sanix Group

Value creation story in the Residential Environment segment(ES: Establishment Sanitation business)

Value Creation

We will promote total sanitation from the viewpoint of preventive
medicine (the idea of preventing harmful organisms) such as
hygiene inspection / diagnosis, food poisoning countermeasures,water quality management, water supply and drainage pipe
maintenance measures, and pest control.

~1950
1951〜1970

Construction period of apartment
houses nationwide（ten thousand）
5
10
15
20 25 30 35 40
0.8（Million yen）

1991〜1995

22.7

1996〜2000

22.2

2001〜2005

19.7

2006〜2010

20.5

2011〜2015

2,351
1,279

2,487
1,328

Gross margin

39.7%

47.7%

51.6%

52.6%

54.4%

53.4%

Operating income

94

179

287

281

276

227

Operating margin

9.2%

12.5%

14.9%

12.5%

11.8%

9.1%

■ Sales / Operating Proﬁt Margin
（%）

3,000
2,500

2,261

1,500
1,000

2,351

2,487

1,033
9.2

1,600

30

1,400

25

11.8

10

9.1

0

0

Negatively charged water generator

Maintenance of buildings and condominiums
Total management ofwater sanitation, waterprooﬁng of rooftops, andpainting, cleaning, andrepair of exterior walls.
Rooftop waterprooﬁng

36

Before

After

120

80

58

55

60
40
20

120
0

0

FY2016FY2017FY2018FY2019FY2020
FY2021（2017/March）（2018/March）（2019/March）（2020/March)（2021/March）（2022/March）

Topic
Started full-scale support for hygiene management in accordance with HACCP,
from introduction to operation.

Main products and services <Establishment Sanitation (ES) Business>

Endoscopic inspection of the insideof the water supply and drainage pipes

360FY2016FY2017FY2018FY2019FY2020
FY2021（2017/March）（2018/March）（2019/March）（2020/March)（2021/March）（2022/March）

Practicing eﬃcient centralized management of water supply anddrainage equipment maintenance. With our main product, "Negatively charged water generator,"
we aim to extend the life of pipes
by suppressing the generation andadvance of rust in the pipes, and to
solve
problems by
removing
scale and oilstains andsuppressing
adhesion.

78

400

140

100

927

522

200

135
1,221

1,124

600

5

160

1,214

1,200

15

500

Maintenance measures for water supply and drainage equipment△7.5%■ Amount of sales
Number of aﬃliated companies

800

12.5

△59

（Company）

20

14.9

12.5

+8.9%
+10.2%（Million yen）

35

1,000

1,926
1,444

+560
+335

■ Number of aﬃliated companies and salesof Daelman shock (rust preventive device)■ Amount of sales
Operating proﬁt margin（From the 2018 Housing andLand Statistics Survey ）It extends the life of the building,
reduces the generation of construction waste and the consumption of
new resources, and provides ahygienic environment.

VS FY2018
Dif.(△)
Average growth(%)

2,261
1,188

Customers

We provide a safe, secure and hygienic environment through maintenance centered on building
water supply and drainage facilities and hygiene
management of food factories and stores (controlof harmful organisms, etc.).

FY2021
Act.

1,926
993

2,000

Local community /Global environment

FY2020
Act.

1,444
689

19.0
9.3

FY2019
Act.

1,033
410

34.9

Value creation model (value to be provided)
Sanix

FY2018Act.

Gross proﬁt

3,500

16.5

1981〜1990

2016〜2018/Sep

FY2017
Act.

（Million yen）

5.3

1971〜1980

Data Section

Medium-term management plan

Amount of sales

0Management Foundation■ Act.
FY2016Act.

From buildings and condominiums to food factories, restaurants,
hotels, hospitals, etc., it is a business division that handles a wide
range of activities from hygiene management to equipment
maintenance, not only for "living spaces" but also for spaces where
people gather, work and live.

Growth Strategy

Control of pests
With advanced expertise, we control
pests and animals such as cockroaches,
mite, ﬂies, mosquitoes, and rats, andprevent the invasion of harmful birds,
and shut out harmful organisms thatare the medium of pathogens.
Pest control and removal

Sanitation management support in accordance with HACCPBusinesses that handle food, such as
restaurants and food factories, areobligated to manage sanitation inaccordance with HACCP (Hygiene
Administration Control Method).
We provide support from thecreation to operation of hygiene
management plans from a professional perspective.
We also provide periodic hygiene
inspections and guidance for
improvement based on the results.

ATP wipe inspection(to conﬁrm cleanliness)

HACCP is an international food sanitation management method that makes sanitation management "visible." In April 2021, our ES Division began full-scale support services for introducing sanitation management in line with
HACCP. According to the revision of the Food
Sanitation Law, sanitation management inaccordance with HACCP will become mandatory for businesses that handle food products
from June 1, 2021.Our service supports ourclients (businesses handling food products)from a professional perspective to ensure thatthe creation and operation of hygiene management plans proceed smoothly.We conduct periodic hygiene inspections and operational statuschecks, as well as provide guidance and advice
on how to make on-site improvements.

Restaurants

Food Industries

SANIX

Sanitation planning support.We
provide original forms tailored toyour industry and strive to makethe process as hassle-free as
possible.

Sanitation inspection to checkcleanliness. Quantify the sanitaryconditions.

37About Sanix Group

Value creation story in the Energy segment（SE: Solar Engineering Business)

Value Creation

Growth Strategy（Million yen）

Medium-term management plan
FY2016Act.

FY2017Act.

FY2018Act.

FY2019Act.

FY2020Act.

Gross proﬁt

26,225
7,423

17,8705,562

14,427
4,687

15,195
4,308

10,584
3,148

8,780
1,941

Gross margin

28.3%

31.1%

32.5%

28.4%

29.8%

22.1%

Operating income

1,669

1,668

1,204

901

250

△473

Operating margin

6.4%

9.3%

8.4%

5.9%

2.4%

―

■ Sales / Operating margin（%）

source, we will work to expand the spread of renewable energy

100through distributed solar power generation suitable for Japan, which

80

has a limited land area. The feature is a total service that Sanix Group■Renewable Energy ■Other
36〜38%of which 50〜60%
22〜24% solar power Referenceof which 14〜16%
solar power 7%60
40

consistently performs from manufacturing, sales, construction tomaintenance. We will provide good products less expensive and faster200

and accelerate the spread of solar power generation. We will also focus
on selling storage batteries, which are essential for the spread of solar
power generation.

9%
2012（Actual）

26,22520,000
2019
2030
2030
2050
（Actual） （Conventional（The Sixth Energy（Reference
target）
Basic Plan)
value）

Value creation model (value to be provided)

Local community /Global environment

15,000

（%）

8.4

6.4

2.4
10,58410,000

8,780

1,600

9

1,500

6

1,400

3

1,300

5,000

Promote eﬀective use of factory roofs andbuilding roofs. We support asset
management, cost (electricity) reduction,
disaster countermeasures and environmental management by solar power
generation, centering on self-consumption type systems. We provide total
support from proposals to design,
construction and after-sales maintenance.

Ｏ＆Ｍ（ maintenance ）Web monitoring,
maintenance andinspection requiredby law. We support
the safe operation ofcustomerʼs solar
power plant.

38

Residential solar power generation system
Aimed to popularize
solar power generation,
we will oﬀer it at thelowest possible cost andrealize a life that isfriendly to both theenvironment andhouseholds.

Power storage
systemAs the needs for
power generation
increase, we areproposing ﬂexible
uses of electricity
through introductionof storage batteries.

Mega solar business
Mega solar through industry-academia-government mutual cooperation "SANIX Solar
Park Munakata" (approx. 2 MW) (June 28,
2013-). We handle everything from design
to construction and power generation
business, also utilize that experience anddata in the sales and construction activities
of solar power generation.
We also accept tours of schools.

■ Our actual • Plan (cumulative)
Market performance（Market MW）(Published by Agency for Natural Resources and Energy)

60,53555,951
44,56870,00060,000

1,418
1,382

50,0001,324

38,91540,00033,49830,0001,100-320,000

1,034
1,000

-6
FY2016FY2017FY2018FY2019FY2020
FY2021（2017/March）（2018/March）（2019/March）（2020/March)（2021/March）（2022/March）

Industrial solar power generation system△1,678 △173.2%

1,200

0

△5.4

Main products and services <Solar Engineering (SE) Business>△15.3%△25.5%

1,137

0

While contributing to the transition to a carbon-freesociety by expanding the spread of renewable energy,
it also contributes to improving the resilience of local
communities through the use of distributed powersources.

△5,647△2,745

1,228

Customers

Through the sale and installation of quality andaﬀordable solar power generation system,
providing customers with the economic value ofelectricity sales and an inexpensive power supply.

VS FY2018
Dif.(△)
Average growth(%)

50,207

5.9
17,87014,427 15,195（Sanix MW）

12

9.3

18%

Prepared by our company based on the "Outline of the Basic Energy Plan"by the Ministry of Economy, Trade and Industry

Sanix（Million yen） ■ Amount of sales
Operating margin
30,00025,000

FY2021
Act.

■ Solar power generation system
introduction amount (cumulative)

Trends and outlook of Japan's renewable energy ratio(based on power generation)issue. In order to make solar power generation more familiar energy

Data Section■ 実績

Amount of sales

The spread and expansion of renewable energy is an important social

Management Foundation

10,000FY2016FY2017FY2018FY2019FY2020
FY2021（2017/March）（2018/March）（2019/March）（2020/March)（2021/March）（2022/March）

Topic
Introducing self-consumption photovoltaic power generation at our own facilities- Toward the decarbonization of society
FY2021 Cases of Introduction to Resource Development Factories（ ）Dates in parentheses are operation start-up dates.

In ﬁscal year 2021, eight of our Resource Development Factories ( factories that convert waste plastic
into fuel) and our Training Center
were equipped with photovoltaic
power generation systems for theirown consumption. In the photovoltaic power generation business,
our strength lies in our integrated
services ranging from manufacturing to sales, installation, and maintenance. The PV power generation
systems at our facilities were also
designed and installed by in-house
design andconstruction.
❶❷(1)Kasaoka Plant(2)Himeji Plant(3)Hino Plant(4) Okazaki Plant(Okayama Prefecture) (Himeji City)(Shiga Prefecture)(Aichi Prefecture)
80.32kW（2021.5.11） 74.59kW（2021.11.8） 74.40kW（2021.6.1） 99.84kW（2021.9.16）(5)Ota Plant(6)Niigata Plant(Gunma Prefecture) (Niigata Prefecture)
125.62kW（2021.7.14） 231.00kW（2022.2.7）
Eﬀects of 8 factories (per year)▼Self-consumption
Approx. 651,617 kWh▼CO2 emission reduction
Approx. 341.8t-co2
Values based on our simulation(7)Hitachinaka Plant (8)Sodegaura Plant(Ibaraki Prefecture) (Chiba Prefecture)
60.00kW（2021.8.27） 75.31kW（2021.7.15）

❻

❸

❺
❹

❼
❽

39

About Sanix Group

Value creation story in the Energy segment（EB: Energy Business）

Value Creation

Growth Strategy

Management Foundation

Data Section■ Act.

（Million yen）

Medium-term management plan
FY2016
Act.

Amount of sales

FY2017Act.

FY2018Act.

FY2019Act.

FY2020Act.

FY2021Act.

VS FY2018
Dif.(△)
Average growth(%)△313△4,418△0.9%△283.3%△4,847△320.7%Gross proﬁt

2,925
84

7,621
208

10,609
616

9,132
△71

10,475103

10,296△3,801Gross margin

2.9%

2.7%

5.8%

―

1.0%

―

Operating income

△171

32

412

△485

△529

△4,435

Operating margin

―

0.4%

3.9%

―

―

―
※Include intersegment sales

Toward the creation of a new energy era and a decarbonized（%）

society, the way we deal with energy is diversifying, including

25

energy conservation, energy creation, energy storage, and the

20.0

20

choice of non-fossil energy sources. In addition, after the deregula-

12.7

15

tion of electricity retailing in 2016, the "era of choosing an electricWith a focus on

10

the Power Producer and Supplier business (electric power retailing),

5

power company" has become ﬁrmly established.

Changes in the share of new electricity nationwide(based on the amount of electricity sold)

we will respond to the diversifying needs of the times by leveraging

19.9

16.2

14.0

（Million yen）

■ Amount of sales
Operating proﬁt margin9.2

10,60910,500

5.2

2017
Apr.

2018
Apr.

generation business.

2019
Apr.

2020
Apr.

2021
Apr.

2022
Apr.

(From Electricity Trade Bulletin
and Electricity Survey Statistics)

Local community /Global environment

Sanix（Million yen）

30

12,00010,475 10,296

7,621

7,500
6,000 △5.9

3,000

20

0.4

9,000

10,00010,475 10,296
6,677
6,000

7,621

△5.1
△5.3

-10
-20

2,925

4,500

6,000

3,507

4,000

2,401

2,925

-30

3,000

1,752
2,071

2,000

1,500

-40

△43.1

We provide energy with a low environmental
impact, such as renewable energy and energy
generated by thermal recycling of waste.

7,500

9,132

0

1,500
0

（Sales）

10,6098,000

Customers

It supplies inexpensive electricity
than before and provides
customers with economic beneﬁts.

■ Amount of sales
Number of sales(retailers)

10

3.9

4,500

Value creation model (value to be provided)

（%）

9,132

9,000
2016
Apr.

■ Sales/Number of sales(retailers)

12,0000

our aﬃnity with other businesses, including the solar power■ Sales / Operating Proﬁt Margin

FY2016FY2017FY2018FY2019FY2020
FY2021（2017/March）（2018/March）（2019/March）（2020/March)（2021/March）（2022/March）

-50

1,136
0

0
FY2016FY2017FY2018FY2019FY2020
FY2021（2017/March）（2018/March）（2019/March）（2020/March)（2021/March）（2022/March）

Topic
Shift in business structure in response to drastic changes in the market
environment - from growth-oriented to functional enhancement

Main products and services <Energy Business (EB)>Electricity retailIts strength is that it has a "basepower source" based on solar power
generation sold and constructedin-house and recycled power
generation operated by groupcompanies. We are trying to reduce
costs by adding other suppliers tothese and combining them.
* Registered retail electric powercompany registration number: A0057【 Power supply conﬁguration(source of power)】

supply and demand
management

In order to provide electricity as reasonable
as possible, our employees consistently
carry out power procurement, supply anddemand management, planningproposals, and sales activities.

TEPCO jurisdiction
Shikoku Electric
Chubu ElectricPower jurisdiction Power jurisdiction

10
5
0

MAR

FEB

JAN

DEC

NOV

40

15

OCT

*Third-party ownership: A business operator installs solar panels on the roof of ahouse to provide power supply services.

FY2021

SEP

Aimed to build next-generation energy systems, such as "distributed
energy systems" that utilize renewable energy for self-consumption
and storage batteries. Also focusing on the spread of third-party solar
power generation*.

FY202020

AUG

Energy business development

FY201925

JUL

JEPX and others
Japan Electric Power
Exchange (JEPX).
It is procured from JEPX,
electric power companies(former general electric
power companies) andaﬃliated power plants.

Tohoku ElectricPower jurisdiction

63

JUN

Own group power plant
The Tomakomai power plant
operated by the subsidiary
Sanix Energy Inc. is a thermal
power plant that exclusively
burns recycled plastic fuel.

Hokuriku Electric
Chugoku ElectricPower jurisdiction
Power Jurisdiction
Kansai Electric
Kyushu ElectricPower jurisdiction
Power jurisdiction

Hokkaido Electric Power Company(Operated by group company
SE Wings Inc.)（円/kWh）

MAY

We purchase the power ofthe solar power plant(customer) constructed byour company.

Power supply is available in 9 powercompanies' service areas.

JEPX (spot market) monthly average price per unit

APR

Solar power generation(FIT electricity)【Power supply area】(as of May 31 2022)

In the medium-term management plan(2019-2021), we positioned the PPS business(electric power retailing) as a growth businessand have been working to expand earnings.
However, in ﬁscal 2021, in addition to anincrease in demand for electricity during thewinter season, the impact of the Fukushima Prefecture earthquake (March 2022) caused a tightening of the power supply, and a global energy
price hike due to the situation in Russia andUkraine caused the market price of electricity tosoar, resulting in a signiﬁcant increase in power
procurement costs. In response, we have shifted
our business positioning and policies. We haveshifted to a business structure that minimizes
market risks, and instead of focusing on growththrough sales expansion, we aim to create synergies with other businesses by strengthening
functions.

*Monthly average of JEPX (spot market) prices (monthly simple
average of system prices (48 frames per day in 30-minute increments).

41

About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

Value Creation Story in the Resource Circulation segment(ERD: Environmental Resource Development Business)"Recycled energy" from waste plastic (resource recycling type power generation system)
While the disposal of industrial waste is becoming animportant social issue, Sanix Group entered the industrial
waste treatment business in 1994 in response to increasingsocial demands. In the course of its operations, the company
has developed a "resource recycling power generation
system”, in which plastics previously simply incinerated or
disposed are reused as energy.

Location of ERD factories and Facilities

C&R Inc.

HOKKAIDO SANIX KANKYO Inc.
Tomakomai factory
Plastics Resource Development factories
Electric Power station
Organic Waste Water Processing factory
Landﬁll

SANIX ENERGY Inc. Tomako-mai Electric Power Plant

Nigata factoryEﬀective utilization of waste plastics nationwide

Now that environmental protection is required on a global scale,proper treatment and recycling of industrial waste is an importantsocial issue.

(10,000t)
1,000

Sanix Group will contribute to the realization of a recycling-oriented
society through businesses for the next generation, such as
recycling waste plastic into fuel and purifying organic waste liquid
discharged from food factories etc.
We aimed to harmonize between the global environment andindustrial development as a member of the "vein industry".

Unused volume

Utilized volume

Utilization rate

822
112

800

(%)
100
95
90

600
86%

400

710

200

85
80
70

0
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

2020 Status of Production, Disposal, Recycling, Treatment and Disposal of Plastic Products(Plastic Recycling and Reuse Association)

Value creation model (value to be provided)
Sanix

Local community /Global environment

At present, waste plastic from manufacturing factories andother facilities are converted into fuel at 15 plastic resources
development factories throughout Japan and used as fuelfor power generation at the SANIX ENERGY TomakomaiPower Plant (a subsidiary of HOKKAIDO SANIX KANKYO Inc.
established in 2003), where it is recycled as energy.

Himeji factory
Kasaoka factory

Tagajyo factory

Ota factory
Hino factory

Fukushima factory

Hiroshima factoryMoka factory

Hibiki factory
Hitachinaka factory
Sodegaura factory
Okazaki factory Fuji factory
Suzuka factory

From 2020, all non-fossil power sources are eligible to trade
the non-fossil value of their electricity as certiﬁcates in the
Non-Fossil Value Trading Market. As a result, the electricity
generated by the Tomakomai Power Plant is now eligible for Non-FIT Non-Fossil Certiﬁcates, allowing the environmental
value of non-fossil electricity itself to be traded, or to be traded in combination with electricity.
The Tomakomai Power Plant is the world's ﬁrst Plastic-only thermal power generation and has overcome many challenges
since its completion in 2003. Sanix Group contributes to the realization of a resource-recycling society through this businessmodel.

Customer-From waste plastic collection / fuel conversion to power generation-

Resource recycling power generation system
Proper disposal of industrial waste.

We contribute to the realization of a resource-recycling society by separating waste discharged
from industry by our own know-how and optimal
recycling technology.

Main products and services <ERD business>

contribute to the realization ofa resource-based society

Waste plastic Collection andtransportation from the source

Fuel conversion of waste plastic

Resource recycling power generation system

We have 15 factories (plastic resource development factory) nationwide for the purpose of converting industrial waste plastics into fuel. By
ﬁnely crushing a wide variety of waste plastics, we promote thermal
recycling which is used as an alternative fuel for petroleum and coal.

The plastic fueled at the plastic resource development factory is used
as an energy source for power generation facilities. Compared to coal,
it generates more heat with less CO2 emission and incineration ash, so
it supplies electricity with low environmental impact and high added
value (see the next page).

Promote eﬀective use ofwaste plastic
Control fossil fuel consumption

Extend the remaining years of the ﬁnal disposal site

Check the collected
waste plastic. Crush
to 150 mm or less.

Plastic fuel stockyard

SANIX ENERGY Tomakomai Power Plant

Final disposal site (C & R Inc.)

Waste liquid treatment / recycling

Generate energy

Hibiki Factory (Organic waste liquid treatment factory)

42

The steam turbine
is rotated by thehigh-temperatureand high-pressure
steam generated
by putting it into
the boiler togenerate electricity.

SANIX ENERGY Tomakomai Power Plant* With a thoroughmanagement system,
we will separate
those containing
vinyl chloride, which
generates dioxins,from those that areused as fuel.

Grain size processing
at the power plant

Packing / wrapping

We have a system in place to accept a large amount of organic waste water discharged from stores in the foodservice industry, food factories and other miscellaneous wastewater pits. We can remove 99% or more of high-concentration pollutants through a series of treatment processes. We are also promoting the recycling of oil anddehydrated sludge as fuel.

1kg of plastic fuelis the electricity
that lights one
light bulb (60W)
for about 40 hours.

Contribute to a decarbonized society through CO₂-free electricity

Crushed at a resource
development factory

Plastic resource development factory

Power transmission

The crushed plastic iscompressed and packed
for wrapping.

Transport fuelto the stockyard

Temporary storage
in the stockyard

It is sized to about 30 mm and used
as fuel for power generation.

Plastic fuel is compressed and packed for wrapping.

43

About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section■ Act.

Waste liquid puriﬁcation treatment by microorganisms, recycling of oil and sludge（Million yen）

Medium-term management plan
Along with the recycling-oriented power generation business(conversion of plastics into fuel and power generation using thisfuel), another resource recycling business is the puriﬁcation andtreatment of waste liquids.

Waste liquid treatment facility

Amount of sales

Transshipment storage location

Gross proﬁt
Gross margin

Hibiki factory

The Hibiki Factory (Kitakyushu City, Fukuoka Prefecture, started
operation in 2000) is the largest facility in Japan specializing in
the treatment of liquid waste. It is capable of treating 1,300
m³/day of organic and inorganic liquid waste from food factories and other plants, and can accept large volumes of liquid
waste by ship and use 4,800 m³ of storage tanks for short noticeacceptance.

Operating income

Operating margin

Organic dehydrated
sludgeInorganic dehydrated
sludgeOsaka

Recycled oil

eﬀective use of resources, but also to the
expansion of the amount of liquid waste
received and the reduction of ﬁnal disposal costs for sludge and other waste.
Since 2018, we have been producing andselling recycled oil concentrated from theoil contained in kitchen waste liquids,etc.。Recycled oil (product name: “Recycled Oil Bio” ) was selected as “Kitakyushu
Eco-Premium in 2021” .
In addition, in FY2020, we are starting ademonstration test to convert sludge left
over after dehydration into fuel.

Cement raw material

Boiler and ﬁring
furnace fuelOmaezaki

Dilution Neutralization Relay
tank
tank
tank

Dehydrator

Neutralization process

Dehydration

VS FY2018
Dif.(△)
Average growth(%)

14,208
2,939
20.7%
1,200
8.5%

14,134
2,637

14,1162,160

16,7595,384

16,5785,538

17,0084,957+2,891+2,797+6.3%+31.9%

18.7%

15.3%

32.1%

33.4%

29.2%

+2,734+95.3%

940

423

3,483

3,673

3,158

6.7%

3.0%

20.8%

22.2%

18.6%

■ Sales / Operating Proﬁt Margin■Sales by division■ Amount of sales
Operating proﬁt margin（Million yen）
18,00016,759 16,578 17,008

16,00014,000

22.2

20.8

18.6

6,000
Kitakyushu City selects products andservices with low environmental
impact for the Kitakyushu Eco Premium. Recycled Oil Bio“ was especiallyhighly evaluated and selected as oneof the ”Top Premiums“. (November
18, 2021, Kitakyushu Mayor Kitahashi(left) and our president at the ceremony to present the certiﬁcate of
selection).

4,000
2,000

8.5

6.7

（Million yen）

45

18,00040

16,00035

14,000

750
648

701
654

646
788

30

12,000

1,768

1,748

1,958

25

10,000

3,880

3,474

2,107

20

8,000

15

6,000

10

4,000

3.0

5

2,000

0

0

0

FY2016FY2017FY2018FY2019FY2020
FY2021（2017/March）（2018/March）（2019/March）（2020/March)（2021/March）（2022/March）■ Organic waste liquid treatment■ Landﬁll■ Other

16,759 16,578 17,008
14,208

14,208 14,134 14,116

8,000■ Plastic fuel■ Power plant（%）

14,134 14,116

7,556

7,160

533
1,122

561
713

461
911

1,968

1,863

2,073

3,023

3,110

2,986

10,111

10,330

10,5748,615

FY2016FY2017FY2018FY2019FY2020
FY2021（2017/March）（2018/March）（2019/March）（2020/March)（2021/March）（2022/March）

Started providing the "SANIX system" service, a centralized management systemfor disposal operations.
Dewatered sludge(recycle)

Waste
Treatment
Operators

g

sin

es

roc

Recycled oil

dp

Oil-water
separation

anCentrifuge

on

Identiﬁcation and improvement of issues through "visualization”
Solid-liquid
separation

Industrial Waste
Commercial General Waste
Valuable waste
Billing Value
Analysisdocumentation Reconciliation

BillingLabor-saving and eﬃciency
improvement in waste-related
operations

Recycled oilproduction（waste oil・sludge）
Centrifuge

cti(Compliance with Waste Disposal
and Public Cleansing Law)

To the Receiving Pit（★）

lle

Strengthening of compliance

Schedule management

Contracts
Processing Flow
Permits
Manifest
Deadline Management Tracing

sis■What the SANIX system can do"Visualization" of waste

aly(recycle)

Order

An

Dewatered sludge【System Overview and Introduction Merits】

Waste
producingbusinesses

Puriﬁcation
Neutralization / aggregation / pressure ﬂotation
teatment ➡ Activated sludge treatment ➡
Aggregation/dephosphorization treatment ➡
Advanced processing Puriﬁcation process

Sea area release

Filtrate Pit

Sewer exclusion

Dehydrator

In April 2022, “SANIX sys- tem,” a cloud-based
system for centralized management of waste-related
operations, was launched. The system was supervised based on the experience and results of thewaste treatment at approximately 12,000 businesssites per year and is equipped with the functions
required by customers. SANIX system supports
proper and eﬃcient business execution and problem-solving, from the management of waste collection
requests and disposal status to data usage and compliance.

Co

There are many types of waste liquid,
and it contains various components.
Before the processing process, weanalyze the properties and performreliable and appropriate processing.

animal and vegetable residues）

Storagetank

FY2021

Topic

Industrial waste （Sludge, waste acid, waste alkali,

ReceivingPit（★）

FY2020Act.

10,000Specially controlled industrial waste（Strong acid / Strong alkali）

Dehydration

FY2019Act.

12,000Waste liquid puriﬁcation treatment ﬂow

Storage tank

FY2018
Act.

※Include intersegment sales

In addition to puriﬁcation treatment, we promote the recycling and reuse ofoil and sludge contained in liquid waste. This contributes not only to theCompost /cement raw material

FY2017Act.

Nagoya* Ships and transshipment storage are carried out
by our partner companies.

Recycling = resource recycling is the ﬁrst
priority, and process products are used

FY2016Act.

Cost optimization, CO2 reduction by optimizing the frequency of collection andtransportation and disposal methods, promotion of recycling by sorting, etc.

Connects waste generators and processors tomanage the entire waste processstorage Pit

44

45About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

Topics: Participation in VPP demonstration project, now in its sixth year
As the trend toward decarbonization is gaining momentum on a global scale, the Sanix Group is promoting technological innovation and the creation of new services that will contribute to solving social issues. One such example is ourparticipation in the Virtual Power Plant (VPP) Demonstration Project, a project subsidized by the Ministry of Economy,
Trade and Industry (METI).The project has been implemented on a ﬁscal year basis since FY2016 and the Sanix Grouphas continued to participate in the project since FY2017.In FY2022, the sixth year of the project, the Sanix Group has
been participating in the “FY2022 Demonstration Project for the Establishment of Next-generation Technologies Using
Distributed Energy Resources such as Storage Batteries”. VPP is a system that functions like a single power plant byusing IOT technology to bundle and control photovoltaic power generation and storage batteries at factories andhomes. This will solve the problems of the power supply system and enable the construction of an economical powersystem and the expansion of the introduction of renewable energies. The Sanix Group will continue to conduct
demonstrations for the social implementation of VPP technology in order to promote the spread of renewable energy.

Management foundationthat supports sustainable growth

Zero-emi Challenge Company List Registration
In October 2021, the Sanix Group's VPP-related initiatives were registered on the"Zero Emissions Challenge List of Companies. The Zero Emissions Challenge is a projectby the Ministry of Economy, Trade and Industry (METI), in collaboration with Nippon
Keidanren and NEDO, to compile a list of companies that are taking on the challenge ofinnovating to achieve carbon neutrality by 2050, and to provide information that can beused by investors and others in Japan and abroad.
▼List of Zero-emi Challenge Companies(Ministry of Economy, Trade and Industry website)
https://www.meti.go.jp/policy/energy̲environment/global̲warming/zero-emission̲challenge/index̲zeroemi.html

Through the implementation of VPPs, renewable energy can be utilized without waste.
One of the things that can be achieved with VPPs is the eﬀective use of renewable energy. As the output of renewableenergies such as solar and wind power ﬂuctuates depending on the weather, when more facilities are installed, there will be
periods when the amount of power generated exceeds the amount consumed, and it is necessary to control the output ofsolar and other power generation to maintain the supply-demand balance during these periods. If VPPs can generatedemand during this time period, the output of solar power generation can be eﬀectively utilized without having to control it.
This will also encourage the spread and expansion of solar power generation.
■Image of supply-demand balance adjustment by VPP

Demand (kW) andelectricity generated ( kW)

DemandSupply( PV power generation )Demand (kW) andelectricity generated ( kW)No VPP ( Present )Supply > Demand

PV power output suppression
DemandSupply( PV power generation )Supply ( Grid power )
00:00

12:00

18:00

24:00

Supply ( Grid power )

12時

18時

24時

The amount of electricity produced
by PV is so large that the supply
exceeds the amount of electricity
required for the entire area (e.g., during
good weather when demand is low).

Demand (kW) andelectricity generated ( kW)

6時With VPP ( Future)

０時

DemandIncreased demand
from energy storage
Supply( PV power generation )Supply ( Grid power )
00:00

46

06:00

Excessive solar
power output. To prevent the powersystem from becoming unstable, theoutput of PV power
generation is suppressed.

06:00

12:00

18:00

24:00

The excess electricity from PV is stored instorage batteries
under command fromt h e V P P a n ddischarged in the evening or later to makefull use of the excess
PV energy.

Sustainability in business activities
Sustainability about people
Social contribution activities
Sustainability data
Management system
Corporate governanceCompliance・Risk management

47

About Sanix Group

Sustainability in business activities■ At a glance(As of Mar 2022)

Approx.

820,000

Number of water supply
and drainage pipe maintenanceand management projects

Number of solar powersales and installation(in-house installation only)(Installation of anti-corrosion equipment, etc.)

housesApprox.

37,000Approx.

48,000(of which approx. 18,000 for residential use)

Capacity is about 1.4GW(equivalent to one nuclear power plant)

Number of houses
for pest control

Approx.

34,000housesApprox.

2,400,000

Number of participants in sports eventsof the youth generation(Rugby, soccer, handball, rhythmic gymnastics, judo)
Approx.

49,500people fromManagement Foundation

Data Section

In the event of a disaster or accident, as typiﬁed by a natural disaster, Sanix Group contribute to the community and society
through activities that make the most of our know-how and expertise (the following are some examples).
1982/
July

Nagasaki ﬂood damage

Quarantine and disinfection of garbage in ﬂooded houses and garbage dumps

1993/
AugustKagoshima disastrous ﬂood

Implementation of epidemic prevention and disinfection of houses and surrounding
areas

1995/
January

Great Hanshin-Awaji
Earthquake

Implementation of epidemic prevention and disinfection of evacuation centers,
toilets, etc. (Photo ① below)

1997/
January

Nakhodka heavy oil spillincident

Processed about 10,000 tons of recovered heavy oil (Photo ② below)

2010

Foot-and-mouth disease
epidemic

Implementation of disinfection of passing vehicles to prevent the spread of infection(Photo ③ below)

2011

Great East Japan Earthquake

Provided a solar power generation system to the Otsuchi-cho meeting place in
the Morioka City disaster area support facility construction project (Photo ④ below)

2014 ~

Dengue domestic infection
outbreakIn response to the domestic outbreak of dengue fever, mosquito control at outdoor
concert venues has been implemented every year since 2016.

2017 ~

Fire ant domestic outbreakFire ant habitat survey conducted at a port distribution warehouse in Fukuoka, whereﬁre ant conﬁrmation information has been collected one after another since 20172017

Heavy rain in
northern Kyushu

Implemented restoration support activities such as underﬂoor mud removal,
cleaning, and disinfection of houses in the disaster area(Photo ⑤ below)

2020

COVID-19

Implementation of disinfection at facilities infected with the COVID-19(Photo ⑥ below)

Amount of waste liquid
processed(Pest and vermin control for business establishments)

Growth Strategy■ Social Contribution Activities in Emergency Situations

Sanix Group's value creation model is to solve social issues by providing value to customers through business activities. With
this business model, we realize our corporate philosophy of "Clean and Comfortable Environment for the Next Generation.“

Number of houses withtermite disinfection

Value Creation

42

t

①

②

③

At the time of the Great Hanshin Earthquake, we
carried out epidemic prevention and disinfectionof evacuation shelters in Nishinomiya City (1995)

A letter of appreciation was given by the Japan
Coast Guard for the treatment of heavy oil causedby the Nakhodka heavy oil spill accident (1998).

Sterilized passing vehicles, etc. in Tsuno Town,
Miyazaki Prefecture (2010).

④

⑤

⑥

In Toho Village, Fukuoka Prefecture, we provided
restoration support such as underﬂoor mud
removal and epidemic prevention disinfection of
ﬂooded houses (2017).

Disinfecting facilities where COVID-19 infected
people have appeared(2020).

Resource recycling power generation
Plastic processing volume

Approx.

5,600,000t

Amount of power generated
by plastic fuelcountries /regions

Approx.

4,800,000

MWh

Sponsored the disaster area support facility
construction project in Morioka City, Iwate
Prefecture, and provided photovoltaic to themeeting place in Otsuchi Town (2011).

■ Letter of Appreciation from the Minister of the Environment
In September 2019, we received a letter of appreciationfrom the Minister of the Environment for our "longstanding commitment to hygiene management, recycling ofindustrial waste, renewable energy and the passing on of
a comfortable environment to the next generations".

48

49

About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Sustainability about people (education)

Sustainability about people (employment)

To realize "people are quality".

Employment system to support a group of experts

Management philosophy "Work is education and education is management“

All corporate activities are in human resources.
Create human resources who will bear the future.

Sanix Group has a management philosophy of "work is education and education is management". In our management
strategy, we have positioned "human resource development" as one of our priority issues. From the beginning, we havedevoted ourselves to employee education based on the idea that "a sense of
mission and motivation for work and abundant specialized knowledge areindispensable".

Hiring status (change in the number of employees)
New Graduate

Mid-career*Sanix Incorporated only

■Male ■Female

This is because the services we provide are invisible, such as hygiene, waste
recycling and energy, and the quality of our employees is directly linked to thequality of our services.

0
FY2019We have established a department specializing in education (Human Resources Development Department) and our own training center and are striving to"cultivate human resources who can provide satisfactory services to ourcustomers and contribute to the creation of a comfortable environment for
the next generation."

1020

FY2021

30

40

50

12

38

60

0

52
10

47

* Including part-time workers and contract employees■Male ■Female（people）

40

FY2020"Sanix Comprehensive Training Center“ (Munakata City, Fukuoka Prefecture)

Data Section

100

FY2020
FY2021

5 43

200

300

45 299254

FY201957（people）

174
144

42 216
39

183

Diverse employment support systems

We have our own training facility, the Comprehensive
Training Center. During the COVID-19 disaster, training is
conducted in small groups with meticulous infection
prevention measures and through online connections tovarious locations based at the center. A total of 1,921
employees received training over the three-year period
from FY 2019 to FY 2021 (105 training sessions in total)*.
In addition, we also lend it to outsiders outside the training
period, and it is also used as a training camp for local boys'
rugby teams and as a facility for corporate training.

▶Support through a mentoring system▶Life Plan Formation througha Retirement Age Option System.

Each new graduate (mentee) is assigned
a mentor (support person). The mentor
is not a trainer, but a supportive person
who will deal with the mentee's feelingsand concerns. Smooth communication
through regular support meetings andan auxiliary system for interaction withcolleagues in the same .

In the age of "100 years in life," we haveintroduced a mandatory retirement age of
60 or 65.We also ﬂexibly respond to theformation of employees' careers and life
plans by employing temporary employees
between the ages of 60 and 65 and contract
employees after age 65 for employment on
and after retirement.
（image）*Total number of participants in all training courses conducted in-house.

Promotion of diversity within the company
Diversity is essentially a trinity of demographic, task, and opinion types, but
in general, only the demographic type tends to prevail.

■Internal training system chart
Subject Person

Others50

Conceptual
SkillsEstablishingand nurturing

Human beings
SkillsTrainingby businessTechnical
Skills〇〇〇Manager training

〇

〇

〇

Factory
Manager training

〇

〇

〇

Next-generation
leaders trainingNew
employeetrainigNew
employees

Workship foreach jobladderJunioremployees(2 to 3 year)
Next generation,
Leader(Deputy Chief
to Subsetion Chief)

Senior Manager
training

Deputy General
Manager, Manager

Training Name

GeneralManagerType

Strengthening skills〇

New-employee
Introduction trainig
New-graduates
follow-up training〇

HS start-up
training

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

HS practicaltraining

〇

〇

〇

〇

Mentor training(System)Practical consultation(Folllow-up interview)

〇

〇

〇

〇

Expertiseby e-learning

〇
〇

〇

〇

〇

〇

〇

Sanix Group will promote diversity while aiming for synergistic eﬀects bycombining the task type, which has an invisible nature, and the opinion
type, which encourage the exchange of opinions across barriers, with thedemography type.

Demography type
Gender, nationality,
age, etc

Task type

Opinion type

Ability,

Opinionexperience, etc.

Training for managers to broaden
their horizons as a manager. We also
provide training for leaders to learn
management knowledge at an earlystage as an executive candidate.

Introductory training for new employees that more than 250 people takeannually. In order to become independent as a Sanix employee, we will not
only permeate our philosophy andvision, but also improve our "basic
skills for business person."A total offour follow-up training sessions areheld for new graduates.

Welfare, etc.

Employee stock ownership

Qualiﬁcation allowance

Company housing system

Employees contribute a ﬁxed amount eachmonth if desired, and Sanix Employee
Shareholding Association purchases thecompany's shares. In addition to supporting
the asset formation of employees, it also plays
a role in fostering employees' awareness ofmanagement participation.

A total of 113 types of qualiﬁcations, including
in-house qualiﬁcations and public qualiﬁcations,are covered, and qualiﬁcation allowances arepermanently provided to holders. Sanix Groupwill promote the acquisition of qualiﬁcations,
new knowledge and skills for employees.

Sanix Group has a company housing systemthat subsidizes rent when employee aretransferred according to company
instructions (various requirements apply).

Recreation facility (Huis Ten Bosch)Welfare services

Employees can stay at the accommodationsin Huis Ten Bosch, the largest theme park in
Kyushu, at a low price, including their family.

Join the industry's largest membership-based
employee beneﬁt service. In addition to
beneﬁts for leisure, shopping, childcare,nursing care, self-improvement, and manyother occasions, we also oﬀer unique services
in cooperation with the Mutual Aid
Association.

51

About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

Sustainability about people(occupational safety and health)
Basic policy on occupational safety and health

Examples of safety and health management activities

Based on the belief that employee safety and mental and physical health are the cornerstones of business development,
Sanix Group views safety and health initiatives as one of the most important foundations of its corporate activities.
We strive to create a safe and comfortable working environment, and also actively work to prevent disasters andaccidents.
1. Recognizing that safety is the cornerstone of business development, we aim to achieve zero occupational accidents.
2. Each employee works to ensure safety and build a robust safety system.
3. Develop human resources to support safety and strive to create a safety culture.

■ Sharing and using near-miss Cases■ 5S activities

In ﬁscal year 2021, important cases with explanations ofhazardous points and precautions were distributed monthly
on the company's website. High-risk cases are discussed atmonthly meetings of health and safety managers to raiseawareness of hazards and to determine countermeasures andrules.

5S leaders appointed by each sites are at the center of the 5S(Seiri: Organization, Seiton: Tidiness, Seisou: Cleaning, Seiketsu:
Cleanliness and Shitsuke: Discipline) eﬀorts in line with thethemes set each month.
Information on activities undertaken at each workplace iscompiled at each business headquarters every month. Excellent
activities and activities that can be used as a reference for otherworkplaces are introduced to all workplaces by means of 5S
posters and other materials. Information is shared across thecompany to promote company-wide improvements.

Safety management system to accelerate the creation of a safe and comfortable working environment【SE・HS・ES Business Division】 【Environmental resource development business division】■ Liaison Meeting with Subcontracting Companies■ Safety management system organization
Sanix Group has established safety
Representative Director
management regulation with the aim ofenhancing safety activities, preventing
Safety Meeting
occupational accidents, and improving
occupational safety management. In
Divisional safety meetings
accordance with this regulation, we
have established a safety management
Workplace safety meetingssystem under the direct control of therepresentative director, which is headed※Organization of each divisionby the general managers of eachbusiness division and administrative division. In addition, we arecontinually implementing improvements to enable the implementation of safety measures in accordance with business operations.

ࢫ࣮ࣟ࢞ࣥẒᾄᾢ෇ѣỉ፼ॹὉේᡢ

ોծửਘậềẆ
ỂẟỦɦᬛረỉ‫᧏ޒ‬ỂӕụኵỮ࠼ẪẲềẆộẵỊ
ộẲẺẇộẺ൦࠯ẟẪỉỂẆᙻ᣼ử߻‫ئ‬ầႸỆ˄ẨẴẮểỆጟầẾề
ễỄܱ଀ẲềẟỦ
Ẩễ‫҄٭‬ửờẺỤ৑ỉ‫ر‬ᘺởฌੈởӕụኵỚầ‫ٻ‬ỚửӋᎋỆӲሖỢẾểẲẺỴỶἙỴ˂߻‫ئ‬ỉӕụኵ‫ئ‬ờẝụộẲẺẇẼ
ծửᡶỜềẟỦ߻ạẇಮẉễሖ৑ỂોᎋểẲềẟẨộẲỢ
ộẲỢạẇʻࢸỉ෇ѣỂӋᘍѣỆᆆẲềẟẨ
ềấụộẴỉỂẆ
ỚửἦἕἁỴἕἩẲӋᎋểễỦӕụኵᵕஉࡇỉᾄᾢ෇ѣ‫إ‬ԓ

ُฌੈ
Ʒȗȭ

ь߻

৕‫ر‬ᘺ

FY2021０ᤠᰦ߻‫ئ‬【Number of Fatalities caused byoccupational accidents】

52

FY2019０

FY2020０

FY2021

０

1.5

0.5

ᅦ޽߻‫ئ‬
ဃ
င
২
ᘐ
ᢿ
Ʒ
ӕ
Ǔ
ኵ
ǈ

A forum for discussions on occupational safety and health (ingroup form, visits to each subcontracting company, etc.) isestablished for subcontracting companies in the constructionindustry. In FY2021, Sanix Group distributed materials in
consideration of the eﬀect of COVID-19.

ＴＲＩＲ
Number of Recordable
Injuries in the year

1.63

1.25

ＬＴＩＲ

ܱ଀

1.25
0.89

Number of lost time
injuries during the year

0.56

0FY2020

FY2021

Total No ofworking hours

×200,000ෞ᧸൦಺Ʒ‫ر‬ᘺǛąࢼಅՃǋ̅ဇưƖŴ‫ڤٻ‬ᚸᲛᲛ

Įଐ᣼߻‫ئ‬
ૼԼƷǑƏƳ
‫ٳ‬ᚇƩᲛ

ĬȆȸȞƴඝƬƨ෇ѣ൑உŴȆȸȞǛᚨƚƯ߻‫ئ‬ưᚘဒǛƠƯŴӕ ŴƍƨƩƘ෇ѣưƢŵ ኵǜưʻǇưᲯ᳍෇ѣưӕኵƖƨ෇ѣƷƨǊŴᄩᛐ ǜưǢǤȇǢሁǛဃƔƠƨ Ʊσƴ᪶Ǎฌੈ૾ඥưƞǒƳ ૢྸૢǛ‫׋‬ǓƨƍƱ࣬ƍǇƢ ǔોծŵShare 6 to 8 case studies every month via a web-based internal
newsletter across divisional boundaries.

■Safety conferenceෞ້ᚨͳƷԗჷ࣋ࡁ
Ǎ౨ჷ֥ƷȁǧȃǯŴ᩼ࠝƕƬƯƍƳƍƔሁŴ ӝƕ‫ص‬ƍƟƱƍƏ଺ƴͳƑŴೞᏡƢǔǑƏƴƠƯƓƖǇƠǐ
ƏᲛᐯ߻‫ئ‬Ʒ߹‫ׅ‬ưŴᲯ᳍෇ѣưႸƕᘍƖƔƳƔƬƨ‫ئ‬৑ǋŴ ‫ފ‬ӕኵưƖǔǑƏƴƠƯ
ƍƖǇƠǐƏᲛ

ஜƷ෇ѣǛ௵ƱƠƯŴ߻‫ئ‬ƝƱƴᲯ᳍࠰ഏဒǛᇌకƠŴ෇ѣƷ ᚘ෇ࣱ҄Ǜ‫׋‬ǓǇƠǐƏ
Მ

ĭ0'9෇ѣ
൑உŴૼƠƍӕኵǛƢƱưŴᲯ᳍෇ѣƷࠢǛ ǔƜ୼ƳǔᎰ‫ئ‬࿢‫ؾ‬Ʒોծ ࠼ƛŴદಅƷ‫ܤ‬μࣱǛǢȃȗ ƓǑƼƍƖƨƍƱᎋƑǇƢ ƞƤƯ˂߻‫ئ‬ƷӕኵǛӋᎋƴȍȪ҄Ǜ৙ᄊƠǇƠǐ ȞȳƏᲛ೧݆ೖ૤

‫ۂ‬ʀ҈સ෨൅ߨ

ɻ■Safety and health oﬃcer meeting(SE・HS・ES business division)
Selected safety and health oﬃcer in each site. Once a month, theSafety and health oﬃcers meeting is held in each region. Oﬃcer of
the Safety and health guidance section in technology department
from SE, HS and ES Business management division and oﬃcer ofthe safety and health section of the human resources department
also participate in this meeting to share information.

In FY 2021, a safety convention was held at each factory under
the theme of "Preventing Contact with Heavy Machinery, etc.
and Re-enforcing Awareness of Past Serious Accidents.” Participants learned how to prevent unsafe behavior and contact
accidents through pre-startup inspections, hazardous behavior training, experiencing a contact accident, and reenacting apast serious accident.

To prevent the spread of
COVID-19, Sanix Grouphas held this meeting
online.

Employee health initiatives
Because it is important for employees to work inhealthy mental and physical conditions for sustainable organizational management, Sanix Group is
actively working to prevent mental health problems.

■ Mental healthcare initiative

ＬＴＩＲƸǯȸȪȳǰǿȯȸӲ߻‫ئ‬ƷӖ൦಺Ǎ
42ᘙ࠰ᡈƘኺᢅƠŴ(̅ဇ᧏‫ڼ‬ƔǒƯƍǇƢŵƠŴ᩿Ʒэ҄ƕᡶᘍƠƯƍǔ‫ر‬૰Ǜλ৖ȸȪ'5ʙಅᢿƕ̅ဇƠນƠƘŴ߻‫ئ‬ƷӖ൦಺ȷǯĬӖ൦಺Ʒ൲Ǖƕဃင২ᘐᢿưᅦ޽Ǜܱ଀ƠǇƠƨ
᭗‫ן‬ඹ෋ೞưฌੈƴଐȳǰǿȯȸƷ‫ر‬ᘺƢǔƱӖ൦಺ϋᢿǕƳƍƷưŴ ĭɦ‫ر‬Ǔ‫ر‬૰ƕ‫׶‬Ტ(42ᘙ᩿ƕэ҄ႆဃƷऀǕƕƋǔ
ǑƏƴɦǛ᫱ဃ
ήƕᡢᢅƠŴᕹƷ૰Ǜ̅ဇᲣŵ
ƳƍŴଐήǛᢚૺƢǔ‫ر‬Įɥ‫ر‬ǓǛᲬࡇᘍǐƏŵ‫ر‬ᘺƕ‫ܦ‬ʕӕǓኵǜưǈǇƠ
ᐯ߻‫ئ‬ưǋӋᎋƴદಅȷ‫ܤ‬μ̝Ǔưǋᙌᓑ߻‫ئ‬Ტૼ๽ჄᲣ ᚡ᠍ƠƯƍǇƢƕŴஉଐƴ˂ᅈƷӸ͂ǕƯƓǓŴͣᩓ ư້໎ƕႆဃƠŴ᧸້ǷȣȃǿȸЭưૠư໺ƕΪ฼ƢǔɶưƋǔƱǈǒǕƯƍǇ
ᡜƛ᡿ǕƨӧᏡࣱƕƢŵ

×200,000

Total No ofworking hours

੿λЈ៻ɲƷȉȩǤȐȸƕ᏿Ǜ‫މ‬ǊƯƍƨໝƳ‫ۋ‬Ѭư৖ඹƍƕЈ Ŵಏ
ஹǔ
ǑƏƴᙌ˺

ኵǈ
ଐ᣼߻‫ئ‬ƷӕǓĬɟ᠆ᄊᄃೞȭȸǿȸ୼ૼ଺Ŵ‫ر‬ᘺሖ৑Ʊ‫ر‬ƠƯƍƳƍሖ৑ƷȠ ᘺȩƕƋǓŴԗ‫׊‬Ʒᚨͳǋɟደƴ‫ر‬ᘺƠŴᙸ௿ƑǋଢǔƘોծᲛ

(Environmental resource development business division)ＴＲＩＲ

FY2019‫ئ߻߃ޢ‬
ͱ͏ͪηϘʖηΝજୗ‫ؽ‬஖͘৖ͳ͢

߻φܴƴᐯᅈư˺ಅ౏৖ॶ΃Ңಊʥ
த‫༽׈‬ʤજୗ‫ؽ‬ͺพƱӓኛ౏Ǜᙌ˺ƠŴಅјྙƷӼɥƱૢྸ ˺Ǜ̟ᡶƞƤǔјௐWR

ĭ

2.51

1.0

ӝƕ
‫ۈ‬ែưƸࢼಅՃλᬛረ཰ƔƬƨƨǊŴɦǁᆆǛ‫ދ‬ఌ˄ƖƷ‫ٳދ‬௿ƑѣƢǔƜƱưŴᙸƳǓǋƢƬƖǓƱ࠼ƘǇƠƨʹ͹൸΍ϒΩϒΩ

【Trends in the Total Recordable Injury Rate (TRIR) and Lost Time Incident Rate (LTIR)】

2.0२୿඘bೡ୶ǇઁƾƌƔঊ၌ƜŷƿbಛೂƜลƎƿ့ǇဇົƎఢƌƔ೭Ⴖ༬ƜǀƈƝƜb೮ࡗ
ธጫธၸǇƌƔ
ǇነǀƄƌbࡊ೘ຎƴǇǿǮǚǍ
Ңಊƿb೚๞Ź඘Ǉ
๺ตǇ୶එƌƛ
ǮȂƌƛſƿƳƎ
Źǀ୿඘ƁኬƠᆋƂƳƌƔc ็Ɔƛশ๟൵ƣÅಁኜƣဒ஽එbƣƜbௗଢ଼ƣঊ၌
ሻ౱Ǉ෨ƘƔƿ
๺୿඘ǇૡఐƜƂƜౄணƝƌƛƄƕb็ᅏƹᇶ᎗ƣƟŹ࿾bƉፇൡ৪
ƊŹc೚ŹƳƎc२୿඘ƣ೘ຎƴƤb຦઄fࡊ๺ᆪƣǏȞǳȔ
ǸǮǳǇƉጥƄƕƊŹcͶޭͮͱ͏Ήͤ・Prevent the three major disasters in the construction industry (" fall and crash accidents,""accidents involving construction machinery and cranes," and "collapse accidents") and
accidents caused by facilities, equipment, machinery, etc., by ensuring that workers follow
work procedures.
・To raise the level of risk sensitivity and reduce the risk of daring to take risks through active
implementation of safety and health education.
・The results of "Hiyari-Hatto" (near-miss) analyses will be horizontally disseminatedthroughout the company to ensure the prevention of accidents.
・Employees who are found to be overworking due to long working hours will have an interview with an industrial physician (via website). In addition, the company will actively
encourage employees to take steps toward improvement by maintaining close contact
with the industrial doctor for those who have health checkup ﬁndings.

０‫ۈ‬ែ߻‫ئ‬Ʒȗȭᤠᰦ߻‫ئ‬

ƷᤠᰦưƸŴ߻‫౐ئ‬ӝӲ৕Ǜ‫ر‬ᘺƠŴλƳԗ‫׊‬μ˳ƕଢǔƘǓŴોծƠǇƠƨ

【Top Priority Measures】

FY2020ʥƷȗȭ・Achieve zero accidents(no one is injured) andzero illnesses (no one ismade ill).
・Provide appropriate andprompt responses andsupport to employeeswith mental health problems.
・Achieve a stress check rateof 80% or higher.

2.5‫ע‬ɦȔȃȈ
᨞െƴ๖Ǔ
ഥǊȜȸȉ
Ǜӕ˄ƚ

ĩħĩĨႩဗƣ ͚͞ͳ௻೸ଈƠƟƿƳ
ௗ೧͹ԜΗ͗ɼຑ
ƎcĩħĩĩႩƄƕƊŹcƒƣ
ΉͤဗƣႩ಑૱बǇ
ኴ༎࿾ǇशଂƜͲ់ྐྵͶཚͬͱ͏
ጵƛǀƔƶbƳ
ƂǀƽŻbঊ၌
ഌ઄ࡿƁࡊ๺ƠƏƤ୿඘ƣଵඡ
ၾዴǇணŽƛŹ
౗ಈƁƜƂb။
ǇലषƜႾ࠶ƌƂƳƌƼŻcƂƹƎŹධ඘Ɲbኴ༎࿾Ǉ๞ŹƟǀƽŻbƴǈ
ഞƌƛƟƜணŽƛू๷
ǇුƶƛŹƂƳ
ƌƼŻc޽όθϩԥͶ݂ΝՅλӝોծ【Top Priority Goals】

０ᘨȶි߻‫ئ‬ƻƨƪƳƔưƸŴ
߻‫౐ئ‬Ʒُ᩿ǛඹдƱȖȩǷǛဇƍƯŴዦᰯƴᄶƖɥƛǇƠƨʤ੃୫क೜͗੣ࡠ

Ensuring safety and health is one of the most important foundations of our corporate activities, and Sanix Group considers zero
danger to be our ultimate target. Through education, we strive to raise employee awareness of safety and health and create acomfortable workplace environment through the voluntary actions of employees and the cooperation of companies.

FY2019

ọẺẼễẦ
߻‫ئ‬

Ʒȗȭ

Ⴧ‫ئ߻ޢ‬

ȎǺȫჇ‫ޢ‬ưƸŴǨǢȸೞሁƷǛᐯᅈь߻ƠŴ᣻Ʒ཰ƍȩǸǨȸǿȸ˄ᡈ
ƚǔǑ‫ئ‬৑ǋǨǢȸưԉȸȒȸƏƴોծᲢǪȸȐȈሁǛ᧸ഥᲣ

【Basic Policy】

3.0߻‫˞ئ‬কܴ ‫ټ‬ʟો̲߻ʙƴǑǓᲢ‫ٽ‬ဋ߻‫ئ‬Უᢿ‫ދ‬μ˳ƕଢǔƘƳǔộẲỢạẇộẺ୛ờൢᢔạợạỆẲ
ềẟẨộẲỢạẇ
ẴỦợạỆ࣎ầẬ

Targets and results for occupational accidents（FY2021）【Number of victims of serious
occupational accidents】

҄ẓ

ౕ̖݆

̐̎̐̏೧

ẦỤẆ൑
ἻὊἚầ࿢‫ؾ‬ႾụộẴẇ༏ɶၐỴẴỦỉỂẆ୍െ
୛ẰỉПஹểễ
ẦỦἼἋἁầɥଞợẟợஜ఍ႎễӳẆ༏ɶၐỆẦ
᧓ӷٟỉ˳ᛦ
ảỦଐầ‫ف‬ảẆẟᵥᵠᵲὸầ᭗ẟ‫ئ‬ͳỉỚễỤẵːᾂ὿ḥỉൢภửឬạẇ୛Ằਦૠίᵵ
ử‫ف‬ởẲẺụẆᚨỆλỦỆẝẺụẆ
ễụỉἓỹἕἁửᛐẲềẟẨộẲỢ
ụẆ˞কỉ‫ׅ‬ૠపᩋầଢẬẆᾇஉˁʙỊẳỜỆ៲ỉਦ೅ểẲềᄩỦ᧓ᨠửჺẪẲẺ
ủầẝỦỉỂẆ
ộẴỉỂẆɟếЎễỄỉᙀዅẴࠇẨᡂộủỦऀଐႆᘙẰủềẟ
ẲỢạẇ൦Ўở‫ط‬ᆙ΁ɶỆᚨͳồỉ࣋ࡁử‫׋‬ụộễỄỉʏủỊẆ
ợụ༏ɶၐʖ᧸
ẰỆợỦ˺ಅ஌

December of each year, Sanix Group conducts statutory
stress checks. The stress check helps to identify and care formental health problems at an early stage by assessing one's
own stress levels, and a system of counseling by doctors is
also available. In FY2021, it was judged that there were nopeople with high stress.

■ Preparation and posting of posters at careconsultation desks
Stress factors are not limited to his /her job. There are variety of stresscaused by poor physical conditions orby nursing care at home, etc. Sanix
Group has partnered with a specialized external organization to provide acontact point that employees can use
in order to prevent the stress they facebecause it is diﬃcult to consult withpeople in the company. Posters areposted in each site, to encourage theuse of the consultation desk.

53

About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

Sustainability about people(customer satisfaction)
Measures to improve customer satisfaction(customer satisfaction survey)

Implementation status of "Customer Satisfaction Improvement Questionnaire"

In November 2018, we established the “CS improvement working group” tounderstand and improve customer satisfaction and reﬂect it in continuous
improvement activities.

Number of
Number of
Implementation distributions valid answers(person)(person)<Examples of eﬀorts to grasp customer satisfaction>(1) Customer satisfaction questionnaire (postcard - web)At the time of visit, the SE / HS / ES business division has introduced apostcard-style questionnaire (web response is also possible) that is handed
to the customer and asked for an answer (collected on the spot or posted at
a later date). This is a questionnaire that we carry out on a daily basis.
We will compile the feedback and provide feedback to employees once a month (via notices and a web-based internal
newsletter).In parallel, we will identify issues and take measures based on customer feedback in order to spiral up to improvecustomer satisfaction.

Gathering Customer Feedback

Valid
responserate※ Arrows indicate year-on-year changes.

Overall satisfaction (average score out of 5)
TermiteIntention
Periodic
disinfection
to repeat
inspection

FY2018JAN/2019

5,373

1,223名

22.8%

3.83

3.71

4.28

FY2019

JAN/2020

5,484

1,224名

22.3%

3.84↗

3.71→

4.25↘

FY2020

JAN/2021

5,608

911名

16.2%

3.88↗

3.72↗

4.29↗

FY2021

JAN/2022

6,055

956名

15.8%

3.91↗

3.78↗

4.31↗

Based on the analysis of the past questionnaire results, we concluded that "satisfaction with periodic inspections"has a high correlation with "intention to repeat" and "intention to recommend," and we are implementing measures
to improve the satisfaction with periodic inspections. As a result, the satisfaction with periodic inspections and otherservices has been gradually increasing.
Trends in satisfaction with periodic inspections (overall)

Utilize to improve customer satisfaction◀Based on the customer feedback obtained, issues are
identiﬁed and measures are considered, and the PDCA
cycle is implemented.

Even when collected on the spot, ablindfold sticker is used to facilitatehonest responses (HS).

0

10

20

30

40

50

60

70

80

90

100（%）FY2018

25.6%

28.4%

38.8%

5.7%

1.5%

FY2019

24.4%

29.2%

40.9%

4.1%

1.3%

FY2020

26.7%

27.0%

39.8%

4.9%

1.5%

FY2021

29.2%

27.5%

37.7%

4.1%

1.6%

The satisfaction rate
(average score on a 5-point
scale) was the highest ever,with 56.7% of the respondents rating themselves as“satisﬁed” or “somewhat
satisﬁed”.
*Fractions are rounded to thenearest whole number, so totals
may not add up to 100%.

■Satisfaction ■Fairly satisﬁed ■Normal ■Fairly dissatisﬁed ■Dissatisfaction

Average satisfaction score (on a 5-point scale) related to periodic inspections
Item

FY2018FY2019FY2020

FY2021

General

3.71

3.71→

3.72↗

3.78↗

Information Postcard

3.48

3.51↗

3.52↗

3.55↗

Appointments

3.52

3.54↗

3.59↗

3.59→

Manner of visit

3.97

4.00↗

4.04↗

4.04→

(2) Customer satisfaction improvement questionnaire

Inspection details

3.92

3.91↘

3.96↗

3.98↗

Since FY2018, we have been conducting an annual questionnaire survey for customers of detached houses. Approximately
6,000 people are randomly selected from customers during the termite disinfection warranty period. We collect and analyze
responses by mail and online. The answers obtained are analyzed and reﬂected in the subsequent work by formulating andimplementing measures to solve the problems.

Report of Inspection Results

3.96

3.92↘

3.97↗

4.05↗

▲Customer feedback is fed back to
employees through a web-based
internal newsletter and sharedthroughout the company.

Answers are also available on the web.

Opinions about periodic inspections (free description) from responses to the 2021 questionnaire.
Level of satisfaction*The results of the questionnaire are introduced on the right page.

■ Customer satisfaction improvement process and survey

54

Policy formulationand execution

repeatEvaluation of feasibility

Direction formulation

Current situation
analysis

Setting the purpose

questionnaire

Satisfaction■ Target level of customer satisfaction

The analysis of the survey
results showed that"inspection contents" and"inspection result reporting" have a high correlation
with overall satisfaction
with periodic inspections,and these were selected as
key items to focus on.

Improved satisfaction

Opinion (partial excerpt)
・It was easy to understand and good because we were shown pictures of the underﬂoor in order from the entrance and hadthem explained to us in detail.
・Corvid19 measures and explanations of the construction work were polite and easy to understand, and the subsequent
response was also good.
・When we asked for installation work, the head oﬃce conﬁrmed the status of the person in charge, which gave us reassurance.

Fairly satisﬁed

・Visiting days and working hours were discussed and decided appropriately. The change of clothes from employee uniform
to work clothes was also appropriate. Explanations after inspections and construction work, and explanations of documents
were simple and easy to understand.

①Expectations ②Satisfactionin advance③ Fixedcustomer④Recommendation

NormalReceive service

Receive
service again

Recommended
service to others

・Courteous, helpful, polite and easy to understand.
・Describe the underﬂoor inspection status for each ﬂoor plan. For example, are there any areas that cannot be inspected? Are
there any areas of concern? etc.

Fairly dissatisﬁed

・More information on areas that are diﬃcult to check during inspections would be appreciated.

Dissatisfaction

・I haven't heard anything since the postcard arrived. It makes no sense that we have no choice but to call them from our end!

Satisﬁed withservice

Aiming level55

About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

Social contribution activities
Healthy development of youth through promotion of international sports and culture

Global Arena Bulgarian Festival

Sanix Group holds international sports competitions andcultural events to provide opportunities for youth
generation athletes for practice and international
exchange experiences, which was created by the founderof Sanix Group at his own expense (the proﬁt of thefounder obtained at the time of the stock listing of thecompany).

The late Shinichi Munemasa (founder of Sanix = former president) who
visited Bulgaria during summer in 2001 was impressed by the culture andhumanity of the country and organized the "Bulgaria Festival" in Japan every
year since then.

During the period, we provide opportunities to communicate each other to deepen understanding of each otherʻs culture while living together, even outside of competition. Foreign players who have been impressed by thepoliteness of Japanese players have begun to imitate
actions such as alignment, greetings and bowing. A
wonderful scene was when one team started singing“We are the world", players from other teams joined one
after another to become a big chorus.

Number of participants in sports events of the youth generation(Rugby, soccer, handball, rhythmic gymnastics, judo)

42

countries / regions
Approximately

The above competitions have been conducted as an accredited project ofSports for Tomorrow* since October 2015.In January 2022, we received a"Certiﬁcate of Appreciation from the Director-General of the Sports
Agency" in recognition of the fact that we have conducted the largest
number of accredited projects among our member organizations during
our seven years of activities.
◀ Certiﬁcate of Appreciation wasawarded online by then Director
General of the Sports Aﬀairs
Agency, Mr. Murofushi. (January
26, 2022).
※Sports for Tomorrow (SFT) is aJapanese public-private partnership for international contribution
through sports.

He was appointed as Honorary Consul of the Republic of Bulgaria in Fukuoka
on October 8, 2007, because of contribution to active cultural exchange
between Japan and Bulgaria through this festival.
With the passing away of Shinichi Munemasa, Hiroshi Munemasa (current
president of Sanix Group) succeeded it from January 16,2019 until now.
* From the perspective of COVID-19 infection spread prevention, implementation of this program
will be postponed in FY2020, and in FY2021, the program will be implemented on a reduced
scale, without the Bulgarian participants coming to Japan.

In March 2019, Deputy Prime Minister and Foreign
Minister of the Republic of Bulgaria awarded the
Honorary Consul of the Republic of Bulgaria inFukuoka (Sanix, Hiroshi Munemasa).

From the 19th (September 2019) Global Arena Bulgaria Festival■ Events by Kazanlac Folk Dance ensemble / International exchange■ Citizen participation event

World festival

SANIX World Rugby Youth Tournament

Annual event held since 2001* * December 2001, then September.
【Host: SANIX Sports Foundation, Global Arena】■ Purpose                        ! "  #     # $  % &            $       $   
'  ( 

SANIX Cup Int'l Youth Soccer Tournament
Annual event held at the end of March, since 2003

Held every year from late April to early May since 2000.
Girls (Rugby sevens) Annual event held since 2013.
【Host: Japan Rugby Football Union, SANIX Sports Foundation, Global Arena】★

【Host: Kyushu Soccer Association, SANIX Sports Foundation】■ Participant nations and regions
Australia, Bulgaria, China, England, France,
Malaysia, Netherlands, Italy, South Korea,
New Zealand, Russia, Taiwan, Thailand,
Vietnam, Uzbekistan, America, Japan(Total number of participants until 2022：
7,600)

Annual event held at the end of November, since 2003*■ Participant nations and regions
Azerbaijan, Bulgaria, Kazakhstan,South Korea, Lithuania, Russia,Taiwan,
Thailand, Australia,Malaysia, China,
Japan (Total number of participant
until2021：10,890 people)
Since 2017, the "SANIX Open Rhythmic Gymnastics Team Championships," which is fora higher age group, is held in January, and the "SANIXCUP Men's Rhythmic Gymnastics
Competition," which is for men, is held in February.(Total number of participants: 557
for SANIX Open and 410 for SANIXCUP Men)

*Kazanlak Folk Dance Ensemble: Founded in 1947, this youth dance ensemble has the longest
tradition in the country.

Performance■ Accommodation exchange

Performance at the facility in Munakata City (Fukuoka Prefecture), where the Global Arena islocated. In addition, Munakata City has signed a partnership agreement with Kazanrak City inthe wake of this festival.

Local young people, in the global arena, wehave established the opportunity toexperience, such as if they were home stay in
Bulgaria.

Annual event held at the end of October, since 2008
※Domestic competitions in 2021

【Host: Kyushu Handball Association, SANIX Sports Foundation】★

■ Participant nations and regions
Canada, France, Germany, Hong Kong
South Korea, Netherlands, Taiwan,
Thailand, Japan(Total number of participants until
2021：3,585 people)
The women's competition has been
held since 2013.

SANIX Int'l Juvenile Judo Championship in Fukuoka

School visit

Annual event held in December, since 2003
※Domestic competitions in 2021

* Until 2012, domestic competition【Host: Fukuoka Gymnastics Association, SANIX Sports Foundation】

A world festival where you can experience street food, dance and music from around theworld. The Kazan Lak Folk Dance Ensemble come to Japan from the city of Kazan Lak, Bulgaria,
and liven up with rhythmic music and light dance.

There are many opportunities to experience
Bulgarian culture, such as cooking classes andgardening classes. The photo is a sketching
party in which citizens run their brushes,modeled after a dancer in a folk costume.

SANIX Cup U-17 Int'l Handball Tournament

Since 2014, the "Sanix Cup High School Girls Soccer Tournament" (domestic
tournament) has been held at the same time. (Cumulative total of participants: 1,502)

SANIX Cup Int'l Junior Rhythmic Gymnastics Group Tournament■ Participant nations and regions( # )# # " # &# #  #  %# *  # + ,  # -# *# *  # *( # # .%# / # 
0       12134
35#2226※Domestic competitions in 2021-2022★

people（As of 2022.3）* From the perspective of COVID-19 infection spread prevention, , thisprogram will not be implemented or conducted as a national
competition from FY2020 to FY2021.

Global Arena Bulgarian Festival

49,500【Host: Kyushu Judo Federation, SANIX Sports Foundation, etc.】★

■ Participant nations and regions
Australia, Beslan, Bulgaria, Chechen
Republic, China, Germany, Hong Kong,
Israel, South Korea, Latvia, Mongolia,
Netherlands, Palestine, Romania, Russia,
Singapore, Slovenia, South Africa, Sri
Lanka, Taiwan, United Arab Emirates,
USA ,Japan (Total number of participants until 2021 :12,009)

This year, they went to schools in Fukuoka and Saga Prefectures. They also performed at aparty at the Elderly Housing with Care in Munakata City.

The Queen of Roses in Kazanrak,
Bulgaria also visits Japan every year.

Photo of the ★ mark is ©MasafumiONO

56

57

About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

SANIX World Rugby Youth Tournament

SANIX Cup Intʼl Youth Soccer TournamentThis is the oldest international sports exchange tournament for the youth generation that we sponsor. This tournament,
which has been held since 2000, reached the milestone of the 20th tournament in 2019, when the "Rugby World Cup 2019Japan Tournament" was held. A total of 13,000 people participated in this tournament until the present day. Among them,
145 players became national teams and 26 players participated in the Rugby World Cup 2019 Japan Tournament. Players
who participated in this tournament can also be seen playing an active part in major leagues in Japan and overseas.

The champion is decided in the qualifying league and the ﬁnal tournament by 16 teams of 3 overseas teams and 13 domestic teams. International matches with a single team in the youth age are a valuable experience and open up their potential asa player.In addition to games, welcome parties and sightseeing (overseas teams) are included to learn about culture.
We also oﬀer clinics for kids and collaborative events with e-sports.

from 2019 Tournament

from 2019 Tournament※For the prevention of COVID-19 infection spread, this program will not be implemented in FY2020 and FY2021.
★

★

※From the perspective of preventing the spread of COVID-19 infection, implementation will be postponed for FY 2019, andFY 2020 and FY 2021 will be conducted as domestic competitions.

★

★

★

★

★

★

★

Comments from participants◆ It was my second time toparticipate, but the operation
was on time and I was able toconcentrate on the match. The
merit of having accommodationand competition in the samefacility was great, and I was able
to manage the health of theathletes suﬃciently.(Coach,Overseas team)

In addition to regular games, we will hold exhibition matches between mixed teams with players who have few opportunities to participate, and exchange leaders from all over the world, saying "Give more players the experience of the world
tournament." It is a tournament with elaborate taste.
★

&  
           
（  
!）"     !        # $  %&    '   #    # &
（ (!）SANIX Cup U-17 Intʼl Handball Tournament
We invited teams from South Korea, Hong Kong, Taiwan and Germany, and held a tournament with 16 teams including domestic men's and women's teams.Athletes can communicate, interact with each other's culture, and deepen their understanding
not only in competition but also in their daily lives.
In addition to the competitions, the event also includes exchange games between overseas teams, exchange meetings between
participating team players, exchange meetings with participating team leaders and tournament oﬃcials, and sightseeing.
from 2019 Tournament※From the perspective of preventing the spread of COVID-19 infection, implementation will be postponed for FY 2020, andFY 2021 will be conducted as domestic competitions.
★

A scene at the welcome party. Spontaneously, a large
chorus of "We are the world".

★

Interaction outside the groundis also a valuable experience.

)      
 %#   &' ##*
* *&&  "       +（ (  ）"  !%%    !   !   #
   &       #（  !）Comments from participants"    # & !&   #! #& # !     （    ）"    #  %       ,        #       
#&-  "    %    ! *        （  !）58◆ The tournament was high level and wellmanaged, allowing players to concentrateon the match. The Global Arena was acomfortable place to compete and stay,and the hospitality of the staﬀ wasexcellent. I would like to participate again(Head coach, Overseas team)For contributions to the promotion anddevelopment of rugby Japan Rugby Football
Union for contribution to the promotion anddevelopment of rugby (On the right is Mr.
Takashi Morishige, Chairman of the Japan Rugby
Football Union).
Photo of the ★ mark is ©MasafumiONO

59

About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section*All photos and participant stories are from the 2019 competition.

SANIX Cup Int'l Junior Rhythmic Gymnastics Group TournamentParticipation in education

The purpose is to popularize junior rhythmic gymnastics and give them opportunities to demonstrate their daily eﬀorts tolearn techniques and expressiveness and to promote international exchange. In addition to the competition, Sanix Groupalso provide events to communicate among participating players by having fun at dance event and present exchange. Social
gatherings for referees and coaches were also organized to provide a place for leaders to exchange information. Furthermore, the Bulgarian Levsky Rhythmic Gymnastics Club, who came to Japan for this tournament, visited the elementary
school to perform performances, participated in exchange events such as rhythmic gymnastics experience and Japaneseculture experience, and interact with the local community.

Sanix Group has focused on education since our founding because we believe that the quality of our employees is directly
linked to the quality of the service we provide to our customers (see page 52).Sanix Group also provides in-house humanresources to the outside, as well as the knowledge and know-how to talent development through our wealth of experiencein employee education.

Comments from participantsOn-site training by the Human Resources Development Department-From junior high school, high school and university classes to corporate seminarsFocusing on employee education we have set up a training
center for a long time and have been researching and renewing
our own employee education program.

◆ For young athletes, participatingin competitions overseas is very
important for learning andimproving their skills. At SANIX
Cup, they live together, so they canlearn about culture (Australia teamcoach).

SANIX Open Rhythmic Gymnastics Team ChampionshipIn recent years, the department has also provided lectures on
SDGs and coaching as external lecturers for university lecturesand management seminars. The department is enlightening that
we are required to take actions with the SDGs in mind, from daily
life to corporate activities.

*From the perspective of preventing the spread of COVID-19 infection,
the program will not be implemented in FY2020, and in FY2021, it will
be implemented on a reduced scale by domestic athletes only.

This is a tournament for seniors (second grade and above) who have developed the"SANIX Cup Intʼl Rhythmic Gymnastics Group Championship" (above) for the juniorgeneration. As a new goal for junior tournament participants, Sanix Group aims topromote the spread of rhythmic gymnastics and to provide world-class rhythmic
gymnastics experiences and opportunities for international exchange.
The Bulgarian Levski Rhythmic Gymnastics Club also performs at local elementary
schools and holds athlete exchange events.

 

In particular, the training on "courtesy, greetings, etiquette, andcommunication" is recognized and evaluated as a social value by
local communities and educational institutions, and we provide
on-site lectures to junior high schools, high schools, community
colleges, Fire Prevention Bureau, etc.

Sports and health guidance by the rugby club (MUNAKATA SANIX BLUES)-Established as an educational course in elementary school-                                             !

SANIX Cup Men's Rhythmic Gymnastics ChampionshipTeaching tag rugby inphysical education classes.

 "        #             
        $      !

In addition to continuing the tag rugby instruction in physicaleducation classes at elementary schools and visiting rugby
classes for kindergarten and nursery school children that we haveconducted with the Sanix Sports Promotion Foundation (established as a foundation in 1997)*, we have started a rugby academy for elementary and junior high school students. We will doour utmost to support children.

Rugby school by
Sanix Rugby Academy.

*From FY2020 onward, the scale of the program has been scaled back from theperspective of preventing the spread of COVID-19 infectious diseases.

Tag rugby instruction in elementary school

Kindergarten /nursery school
rugby visit classroom

Local residents rugby experience /health class

15 school, 952 people(FY2020)15 school, 1,015 people(FY2021)

4 school, 105 people(FY2020)
4 school, 176 people(FY2021)

1 locations, 50 people(FY2020)
2 locations, 190 people(FY2021)

SANIX Int'l Juvenile Judo Championship in Fukuoka *From the viewpoint of preventing the spread of COVID-19 infection, implementation

Dispatch of in-house personnel to educational sites

The purpose of this tournament is to promote and develop junior high school judo and to improve their competitiveness.
Sanix Group aims to foster the healthy development of athletes who can play an active role in international competitions andthe youth who will lead the next generation, and to develop human resources who can contribute to the international
community. In addition to competitions, we also hold technical clinics inviting world-class athletes, training camps centeredon overseas teams, and training sessions.

▶Dispatch of Interview Committee Members for the Fukuoka Prefecture Teacher Recruitment Examination
Sanix Group dispatches personnel from its Human resources department to serve as interviewers for the Fukuoka
Prefecture Teacher Recruitment Examination, which has been introduced to produce teachers with “human charm thatchildren admire, a broad and deep love for children, and a strong sense of mission as a teacher”. This is a result of a match
between the local government's desire to adopt a broad perspective and our desire to contribute to the local community
by utilizing our know-how outside the company.

will be postponed for FY2020, and FY2021 as a domestic competition.

Another feature is the development/self-development of young people with a global perspective via cultural and international exchanges through attractions and communal living.

Comments from participants◆ It was great to be in an environment where a competition withover 800 athletes is held regularly.
I hope it will continue and I would
like to participate again. (Mongolian team coach)60

Community clean-up activities by therugby team(24 times in FY2021).

*From the perspective of preventing the spread of COVID-19 infection,
implementation will be postponed for FY2020 and FY2021.

This is a tournament for male athletes (high school students and younger) in Japan.
Sanix Group will contribute to the spread of men's rhythmic gymnastics, which
originated in Japan, and the improvement of competitiveness.

 

In May 2022, we suspended the Munakata Sanix Blues rugby
team but opened the Sanix Rugby Academy in September
2022.We will continue to contribute to the community throughrugby, utilizing our 28 years of experience, human resources, andfacilities.

Greeting activities by
rugby team at elementaryand junior high schools(33 schools in FY2021).

▶Dispatch of employees to elementary school international exchange classes.
An on-line exchange class was held between an elementary school in Munakata
City, in Fukuoka Prefecture, and a Bulgarian judo player. The Sanix sent an
employee who is familiar with the country as a guest coach / coordinator as well
as served as an interpreter to connect the children with Bulgaria.
* In the wake of the Bulgarian Festival, Munakata City is actively interacting with Bulgaria (see page 61). In
2017, Fukuoka Prefecture, Munakata City, Sanix Sports Promotion Foundation, and Bulgarian Judo
Association signed an alliance as an Olympic campsite. The city accepts pre-camps for the country's judoteam and promotes interaction with the citizens.

61

About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

Sustainability data
Environment

Social■Environmental contribution through business■Community / Social contribution

Unit

FY2019FY2020

Amount of waste plastic processed（1000t）

288

266

282

Power generation using waste resources*1）

（GWh）

258

247

291

（Installation）

1,636

1,590

1,531

（MW)

96

59

36

（1000t）

107

96

102

Number of
installations
Solar panel
Installation
capacity
Amount of contracted waste liquid
puriﬁcation treatment

FY2021FY2019FY2020

FY2021(Number of visits)

2

2

1

(Number of people)

390

26

190

(Number of visits)

52

20

27

(Number of people)

2,895

1,107

1,501

Global Arena Bulgarian Festival event status*12)(Number of visits)

12,508−3,720

Implementation status of Sanix presents event*13)(Number of teams)

334

20

217

(Number of participants)

2,757

500

1,888

(Number of teams)

24

−

−

(Number of participants)

576

−

−

−

20

*13)

24

*13)

500

*13)

582*13)

Implementation status ofon-site lessons

Human resources
development department

11)

Rugby club, etc. **1) The amount of power generated from plastic that has undergone intermediate treatment at our plastic recycling factory is listed.

■Environmental load in business*2)

Energy consumption
Greenhouse Gas
Emissions

Unit

FY2019FY2020

FY2021（1000GJ）

366

356

377

*3)

（t･CO2）

10,448

9,545

10,398*4)（t･CO2）

17,57015,25014,309（1000t）

311

323

295

Scope1
Scope2

Water consumption*5)

SANIX World Rugby Youth Invitational Tournament

SANIX Cup Intʼl Youth Soccer Tournament
SANIX Cup High School Girls' Football Tournament
SANIX Cup U-17 Intʼl Handball Tournament*2) The above ﬁgures are based on the ﬁgures reported by the sites of the Sanix Group that are subject to the greenhouse gas emissions calculation, reporting andpublication system.
*3) The ﬁgures are calculated based on CO2 emissions from the use of company-owned vehicles in addition to the CO2 emissions subject to the greenhouse gas emissions
calculation, reporting and publication system.
*4) Indicates CO2 emissions from electricity, calculated using emission factors by electric utility.From this year, the CO2 emissions are adjusted to include CO2 emissions fromprevious years.
*5) Most of the water consumption is industrial water used by the waste water treatment factory and Tomakomai Power Plant.

SocialSANIX Cup Intʼl Junior Rythmic Gymnastics Group Tournament

SANIX Intʼl Juvenile Judo Championship Fukuoka

SANIX CUP Men's Rhythmic Gymnastics Competition■Employment / Employee (Sanix non-consolidated)
Unit

FY2019FY2020

FY2021Total(people)

1,796

1,844

1,869

Men/Women(people)1,535／261

1,555／289

Total(people)351

273

New graduate /Mid-career(people)52／29957／21643／18329／2.232／2.431／2.3(people)

31

30

24

(people)

100

124

132

(age)

42.5

43.6

42.9

Employees

New employees
Employment/ personnel

Employment of people
with disabilities
6

Foreign employees*
7)

Rehiring retirees*

Number / Ratio （people/％）Numberof people
Numberof people

Average age

Labor/ vacation

Average years of service(years)Total actual working hours（hours/people）

Human resources
development

1,559／310
226

9.3

9.2

9.9

2,399

2,366

2,345

(days/people)

9.2

11.7

9.7

（％）

53.6

63.4

56.9

No of days acquired(people)

17

17

15

Acquisition rate

(people)

1

1

1

2.51

1.63

1.25

0.89

1.25

0.56

Paid holidays

TRIR(Total Recordable Incident Rate）*8)
Labor Healthand safety

SANIX Cup Int'l Junior Rhythmic Gymnastics Group Tournament

LTIR(Lost Time Incident Rate）*9)

Disaster fatalities(people)000Annual training participants (total) *10)

(people)

956

523

442

* 6) Refers to those who have foreign nationality as of the end of March.
*7) The cumulative total as of the end of March is shown.
* 8) Frequency of total occupational accidents, including non-stop accidents per 200,000 total working hours.
* 9) Frequency of lost time accidents per 200,000 total working hours.
*10) Training refers to employee training, including self-improvement, and training by business division, sponsored by the Human Resources Development Department of
the Company.

62(Number of teams)(Number of participants)−(Number of teams)

16−

12*13)(Number of participants)

320−

185*13)(Number of teams)

113−

122*13)(Number of participants)

755−

740*13)(Number of teams)

138−

56*13)(Number of participants)

890−

309*13)(Number of teams)

19

−

−

(Number of participants)

114

−

−
*13)

(Number of teams)

24

−

3

(Number of participants)

102−

72*13)*11) Includes tag rugby classes at nursery schools, kindergartens, and elementary schools, and rugby experience and health classes for local residents.
*12) Since March 2020, the implementation has been postponed or the scale has been reduced to prevent the spread of the COVID-19.
*13) From the perspective of COVID-19 infection spread prevention, this event is conducted as a domestic competition.

Governance
FY2019FY2020

FY2021In-house（people）

11

11

11

Outside（people）

5

5

5

Total

（people）

16

16

16

Ratio of outside directors

（％）

31

31

31

Term of oﬃce of director（years）

1

1

1

Number of director

Board of directors

Number of events held（times）

16

14

16

Board of Corporate Auditors*14)

Number of events held（times）

3−−

Audit and Supervisory Committee*14) Number of events held（times）

7

8

13

Number of events held（times）20０

Number of members（people）

15

15

15

Number of events held（times）

5

8

11

Number of members（people）

14

14

14

Compliance Committee

Internal Control Committee* 14) Based on the resolution of the 41st Ordinary General Meeting of Shareholders held on June 27, 2019, the company transferred to a company with an audit andsupervisory committee on the same date.

63

About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

Management system(As of June 29, 2022)

Director

64

Director (Audit and Supervisory Committee Member)President and Representative Director
Hiroshi Munemasa (Date of birth: Jul. 17, 1975)

Director, Managing Executive Oﬃcer
Takeshi Inada (Date of birth: Mar. 4, 1979)

Director, Managing Executive Oﬃcer
Michimasa Masuda (Date of birth: Aug. 16, 1977)

Director (Audit Committee Member)
Koichi Ueno (Date of birth: Jul. 31, 1970)

Director (Audit Committee Member)
Isamu Kondo (Date of birth: Jul. 7, 1955)

Director (Audit Committee Member)
Naoki Kaneko (Date of birth: May. 8, 1967)

Jan. 2003 Joined the Company
Jun. 2007 Director in charge of Special Missions,Executive Oﬃce
Jun. 2013 Director, Vice President and Executive Oﬃcer
Jan. 2017 President and Representative Director (to present)
Jan. 2017 President and Representative Director, Bion Inc. to present
2Feb. 2017 Representative Director, Sanix Sports
Promotion Foundation, to present
Sep. 2017 Chairman and Representative Director of
Munemasa Shuzo.co.Ltd. to present
Apr. 2020 Chairman and Representative Director, Sanix
Energy Inc. to present
Jul. 2020 Chairman and Representative Director of SE
Wings, Inc. to present.
Jun. 2022 Director, Kaneko Foundation, to present

Aug. 1998 Joined the Company
Jun. 2013 Managing Executive Oﬃcer, General Manager
of Kansai Regional Headquarter, HS Business Div.
Apr. 2014 Managing Executive Oﬃcer, General Manager
of Kansai Regional Headquarter, West Japan SE
Business Headquarter, General Manager of Kansai
Regional Headquarter, HS Business Headquarters
Dec. 2016 Managing Executive Oﬃcer, Deputy General
Manager of East Japan Regional SE Business
Headquarter
Apr. 2017 Managing Executive Oﬃcer, General Manager
of SE, HS and ES Business Headquater
Jun. 2017 Director, Managing Executive Oﬃcer, General
Manager of SE, HS, and ES Business Headquarter (topresent)

Apr. 2001 Joined the Company
Jun. 2012 Director, General Manager of Accounting
Dept.
Jun. 2015 Director, Managing Executive Oﬃcer,
General Manager of Accounting Dept. and in chargeof IT Promotion
Aug. 2018 President and Representative Director, Sanix
Solar Electric Co.
Nov. 2019 Director, Managing Executive Oﬃcer,
Deputy General Manager of Administration
Headquarter and General Manager of Energy
Business Development Div.
Jun. 2022 Director, Managing Executive Oﬃcer,
General Manager of Corporate Division and General
Manager of Administration Division, to present

Nov. 1994 Joined Utsunomiya Judicial Scrivener OﬃceAug. 1997 Joined Namco Corporation (currently
BANDAI NAMCO Entertainment Inc.)
May. 2014 Joined the Company
Dec. 2016 Deputy General Manager of Legal Dept.
Apr. 2020 General Manager of Legal Dept.
Jun. 2021 Director (full-time Audit & Supervisory Board
Member), (to present)

May. 1980 Joined Nas Stainless (currently Nasluck Co.,
Ltd.)
Mar. 1986 Joined Munemasa Syuzo Co., Ltd
Mar. 1999 Representative Director and Senior
Managing Director of Munemasa Syuzo Co., Ltd
Jul. 1999 President and Representative Director,
GLOBAL ARENA Ltd (to present)
Aug. 2010 Corporate Auditor, Munemasa Syuzo Co., Ltd(to present)
Jun. 2014 Outside Director
Jun. 2019 Outside Director of the Company (Audit
Committee Member), to present

Jun. 2001 President and Representative Director of
TOYOTA Rentalease Fukuoka Co.,Ltd. (to present)
May. 2005 President and Representative Director of
Fukuoka Showa Taxi (to present)
Jun. 2006 Representative Director and President of
Fukuoka Toyota Corporation (to present)
Sep. 2009 Representative Director and President of
SEED Holdings, Inc. (to present)
Feb. 2010 Representative Director and President of
Showa Group Marketing (to present)
May. 2010 Representative Director and President of
TOYOTA L&F FUKUOKA (to present)
Jun. 2010 Outside Director, Kyushu Asahi BroadcastingCo., Ltd (to present)
Jun. 2013 Chairman and Representative Director,
TOYOTA COROLLA FUKUOKA Co.,Ltd.
Jun. 2014 Chairman and Representative Director,
Showa Bus Co., Ltd (to present)
Jun. 2015 Outside Director
Jun. 2019 Outside Director of the Company (Audit
Committee Member), to present
Oct. 2019 Representative Director and Chairman of
FUKUOKA TOYOPET (to present)
Apr. 2020 Representative Director and Chairman of theBoard, Toyota Mobility Service Fukuoka Corporation;(to present)
Feb. 2022 Chairman, Japan Automobile Dealers
Association, to present

Director, Managing Executive Oﬃcer
Kenji Kaneko (Date of birth: Oct. 2, 1951)

Director, Managing Executive Oﬃcer
Koichi Mizukawa (Date of birth: Jul. 15, 1973)

Director, Managing Executive Oﬃcer
Kazuyuki Tabata (Date of birth: Apr. 5, 1973)

Apr. 1970 Joined The Nishi-Nippon Sogo Bank, Limited(currently The Nishi-Nippon City Bank, Limited)
Jun. 2008 Managing Director of the Company, in chargeof Business Strategy
Oct. 2008 Managing Director, in charge of Business
Strategy and General Manager of Environmental
Resources Development Business Headquarter
Jun. 2010 Managing Director, General Manager ofSpecial Sales Dept. (currently Corporate Sales Dept.),
HS Business Div.
Apr. 2017 Director, Managing Executive Oﬃcer, Deputy
General Manager of SE, HS and ES Business
Headquarter and General Manager of Special Sales
Dept. (currently Corporate Sales Dept.), (to present)

Apr. 1996 Joined the Company
Apr. 2014 Executive Oﬃcer, General Manager of
Administration Dept., West Japan Regional SE Business Div.
Oct. 2016 Executive Oﬃcer, Deputy General Manager of West Japan
Regional SE Business Div. and General Manager of Administration Dept.
Apr. 2017 Managing Executive Oﬃcer, Deputy General
Manager of SE, HS and ES Business Headquarters andGeneral Manager of SE Business Div.
Jun. 2017 Director, Managing Executive Oﬃcer, Deputy
General Manager of SE, HS, ES Business Headquarters
and General Manager of SE Business Div.
Jun. 2022 Director, Managing Executive Oﬃcer, General
Manager of PVE Business Management Division,
General Manager of PV Business Division and General
Manager of New Power Business Division, to present

Nov. 2000 Joined the Company
Oct. 2015 Head of Shikoku Regional Headquarters,
West Japan SE Division and Head of Shikoku
Regional Headquarters, HS Division
Jan. 2016 General Manager of Sales Promotion
Department, HS Business Division
May. 2016 Managing Executive Oﬃcer, General
Manager of HS Business Div.
Jun. 2017 Director, Managing Executive Oﬃcer,
General Manager of HS Business Div.
Jun. 2022 Director, Deputy General Manager of
SE-HS-ES Business Headquarters, General
Manager of SE Business Headquarters and General
Manager of HS Business Headquarters, to present

Director (Audit Committee Member)
Yasufumi Kubota (Date of birth: Feb. 5, 1946)

Director (Audit Committee Member)
Genichiro Yasui (Date of birth: Aug. 17, 1941)

Director (Audit Committee Member)
Sadahito Baba (Date of birth: Apr. 3, 1954)

Apr. 1968 Entered the Legal Training and ResearchInstitute of the Supreme Court
Mar. 1970 Completed Legal Training and ResearchInstitute of the Supreme Court
Apr. 1970 Registered as an attorney (admitted to Tokyo
Bar Association), entered Akefune Law Oﬃce
Apr. 1980 Established Kasumigaseki Sogo Law Oﬃce
Partner, Kasumigaseki Sogo Law Oﬃce (to present)
Mar. 2013 Corporate Auditor, Royal Holdings Co., Ltd
Mar. 2016 Outside Director (Member of the Audit
Committee), Royal Holdings Co.
Jun. 2016 Outside Director
Jun. 2019 Outside Director of the Company (Audit
Committee Member), to present

Jul. 1967 Joined Yamada Shoji (currently RIX
CORPORATION)
Jan. 1975 Director and General Manager of Accounting
Dept., Yamada Shoji
Mar. 1976 President and Representative Director,
Yamada Shoji
Jun. 1997 Outside Auditor of the Company
Jun. 2000 Chairman and Representative Director, RIX
CORPORATION
Aug. 2004 Director and Chairman of the Board, RIX
CORPORATION
Jun. 2008 Director and Advisor of RIX CORPORATION
Jun. 2012 Advisor, RIX CORPORATION
Jun. 2019 Outside Director of the Company (Audit
Committee Member), to present

Director, Managing Executive Oﬃcer
Hideki Takei (Date of birth: Jul. 21, 1970)

Director, Executive Oﬃcer
Motoi Inoue ( DOB Jan. 1, 1967 )Director

Aug. 1999 Joined the Company
Apr. 2016 Executive Oﬃcer, General Manager of Environmental Resources Development Business Headquarters andGeneral Manager of Administration Dept.
Jun. 2016 Managing Executive Oﬃcer, General Manager ofEnvironment Resources Development Business Headquaters
Oct. 2017 Director, Managing Executive Oﬃcer, General Manager
of Environmental Resources Development Business Headquarters
Apr. 2022 Director, Managing Executive Oﬃcer, General Manager
of Environmental Resources Development Business Division andGeneral Manager of Resources Recycling Business Division; topresent

Apr. 1989 Joined The Nishi-Nippon Bank, Ltd.( The
Nishi-Nippon City Bank, Ltd.)
Apr. 2020 Branch Manager of Nishi-Shinmachi Branchand Fukuoka Nishi Block Manager of the same bank
Apr. 2022 Joined the Company, General Manager of Head Oﬃce
June 2022 General Manager of Sales Promotion
Department, Corporate Sales Division, SE-HS-ES
Business Headquarters
Jun. 2022 Director, Executive Oﬃcer, General
Manager of Sales Promotion Department,
Corporate Sales Division, SE-HS-ES Business
Headquarters, to present

Apr. 1974 Joined Obayashi Corporation
Sep. 1979 Joined Takaki Corporation, Director
Aug. 2003 Joined Joe Corporation Takaki, Director
Jul. 2006 Joined the Company
Jan. 2012 Transferred to Sanix Engineering, Director
Nov. 2017 Transferred to Sanix Incorporated.
Engineering Dept. Adviser
Jun. 2020 Director, in charge of construction
operations (to present)

Apr. 1978 Joined Toyota Motor Co., Ltd (currently
Toyota Motor Corporation)
Feb. 1992 Transferred to Toyota Motor Kyushu Inc.
Jan. 1998 General Manager of Production PlanningOﬃce, Production Control Dept.
Apr. 2001 General Manager of Production Control
Dept.
Apr. 2003 General Manager of Business Administration
Dept.
Jun. 2003 Director
Jun. 2007 Managing Director
Jun. 2011 Senior Managing Director
Jun. 2014 Representative Director, Executive Vice
President
Jan. 2021 Executive Advisor (to present)
Jun. 2021 Outside Director of the Company (Audit
Committee Member), to present
Jun. 2021 Outside Director (Member of the Audit
Committee), RIX Corporation (to present)

Tetsuo Takaki (Date of birth: Jul. 15, 1950)

65

About Sanix Group

Sustainability/Corporate governanceCorporate governanceWith the recognition that corporate governance is a serious issue that calls for socially responsible management in linewith corporate ethics, Sanix Group build a corporate governance system based on a long-term perspective, while
striving to establish a system that functions well in terms of decision-making eﬃciency, management supervision,
management fairness and transparency, and compliance, in order to maximize corporate value and conduct shareholder-oriented management.

Value Creation

Growth Strategy

Management Foundation

Data Section■Role of the Board of Directors■Role of the Audit Committee

The Board of Directors shall make appropriate decisions onimportant matters (management plans and strategies) in a
lawful and prompt manner and supervise the execution ofduties by Directors (excluding those who are members of
the Audit Committee) and Executive Oﬃcers in cooperation with the Audit Committee, in order to contribute to
the sustainable growth of Sanix Group and the enhancement of corporate value over the medium to long term.

The Audit Committee shall audit and supervise theperformance of the duties of the directors, determine thecontent of proposals for the appointment, dismissal andnon-reappointment of the Independent Auditor, exercise
its authority in relation to audit remuneration, and perform
such other duties as may be prescribed by law and the
Audit Committee Rules.

■Internal Control Committee■Corporate governance system to ensure sound management and eﬃcient decision-making
Sanix Group has adopted a company-with-audit-committee structure in the belief that it will contribute to the further
enhancement of corporate value. By establishing the Audit and Supervisory Board, the majority of whose members areoutside directors, and by granting directors who are Audit Committee members the right to vote at meetings of the Board of
Directors, we aim to enhance the supervisory function of the Board of Directors, further strengthen corporate governance,
and increase the fairness and transparency of management. In addition, by allowing the Board of Directors to delegate
decisions on business execution to a wide range of directors, we aim to separate business execution from supervision andimprove the eﬃciency of decision-making.
■ Corporate Governance Schematic Diagram (as of March 31, 2022)■Audit System (Three-way Audit)
The Audit and Supervisory Board members will audit and supervise the directors' performance of their duties by sharing with
the Audit and Supervisory Board various information collected by attending the Management Committee and other important meetings. In addition, the Audit and Supervisory Board plans to closely exchange opinions with the accounting auditor
and will work closely with internal audit and internal control related departments by adding the Audit and Supervisory Board
to their reporting lines to ensure timely and appropriate auditing and supervision.

SANIX GROUP
Shareholdersʼ meeting
Appointment and dismissal of directors(excluding directors who are membersof the Audit and Supervisory Committee)

Appointment and dismissal of directors
who are members of the Audit andSupervisory Committee

Audit andsupervision

Board of Directors

Appointment anddismissal

Cooperation

Audit and Supervisory
Board

Accounting Auditor

Accounting Audit

Cooperation

Reperentative Director

Cooperation

Accounting Audit

Internal Control
Committee

Cooperation

Reports

Selection,
dismissal
and supervision

Cooperation

Compliance Committee
Management
meetings

・The Internal Control Committee shall promote the development and operation of internal controls and compile the resultsof evaluation of their eﬀectiveness.
・The Internal Control Committee shall review the internal and external risk factors surrounding the business of Sanix Groupand report to the Board of Directors.
・In order to achieve appropriate ﬁnancial reporting, the Committee shall work closely with the Audit and Supervisory Boardand exchange opinions in a timely and appropriate manner to enhance the eﬀectiveness of internal controls.
・The Committee shall be chaired by the Reperentative Director and consist of the General Manager of each businessdivision, the General Manager of the Administration Division, the General Manager of the General Aﬀairs Division, theGeneral Manager of the Legal Division, the General Manager of the Accounting Division and others. The secretariat is locatedin the Corporate Planning Department and is responsible for its operation.

Legal advisers
AdviceThe Internal Audit Oﬃce, which reports directly to the President, is responsible for auditing the operations of each divisionand oﬃce, and audits compliance with company regulations and overall business operations for appropriateness, eﬀectiveness and legality.

■Activities and attendance of outside directors（FY2021）
AttendanceUpper Section:
Board Meeting
Lower Section:
Supervisory Committee

samu Kondo

Instructions andreports
AdviceDirector in charge
Internal Audit Oﬃce

Naoki Kaneko

16/16

100.0%

13/13

100.0%

15/16

93.8%

9/13

69.2%

16/16

100.0%

13/13

100.0%

16/16

100.0%

13/13

100.0%

13/13

100.0%

Main activities(summary of duties performed with respect to expected role)
Based on his management experience as a representative director of a company, he provides valuable advice onmanagement from a medium- to long-term perspective, as well as valuable advice on the functions anddiscussions of the Board of Directors, thereby fulﬁlling a supervisory function over management from an objective
position that is free from the management team engaged in business execution.
Based on his management experience as a representative director of a company, he provides valuable advice onmanagement from a medium- to long-term perspective, as well as valuable advice on the functions anddiscussions of the Board of Directors, thereby fulﬁlling a supervisory function over management from an objective
position that is free from the management team engaged in business execution.

Internal Audit

Executiveoﬃcer

Departments

Legal Depertment

Instructions
and reports

Genichiro Yasui
Cooperation

Customer Service
CentreInstructions andreports

Reports

Whistle-blowing
systemYasufumi Kubota

Cooperation

Sadahito Baba

※

10/10

100.0%

Based on his experience and insight as a legal expert, he provides valuable advice, especially for strengthening
management in general and governance in particular, and fulﬁlls a supervisory function over management froman objective position free from the management team that executes the business.
Based on his management experience as a representative director of a company, he provides valuable advice onmanagement from a medium- to long-term perspective, as well as valuable advice on the functions anddiscussions of the Board of Directors, thereby fulﬁlling a supervisory function over management from an objective
position that is free from the management team engaged in business execution.
Based on his management experience as a representative director of a company, he provides valuable advice onmanagement from a medium- to long-term perspective, as well as valuable advice on the functions anddiscussions of the Board of Directors, thereby fulﬁlling a supervisory function over management from an objective
position that is free from the management team engaged in business execution.

*Number of meetings held after the appointment of the outside directors.

Interconnection and cooperation
Aﬃliated companies
66■Compliance Committee
The Compliance Committee, chaired by the Representative Director and vice-chaired by the General Manager of the Legal
Department, has been established to ensure the proper conduct of business operations(See next page for details.)
67

About Sanix Group

Compliance • Risk management

Value Creation

Growth Strategy

Management Foundation

Data Section■Suppliers (building a sustainable value chain)■ For stable procurement

Sanix Group is engaged in business activities that contribute to the realization of a sustainable society and considers
compliance to be the foundation of robust corporate management. In order to raise the awareness of compliancethroughout the organization, we include compliance-related lectures in the training curriculum for new employees, andhave established the Voluntary Code of Conduct, which is stricter than the laws and regulations related to the businessactivities of each division.

■Compliance system

In order to mitigate procurement risks in the event of a disaster, accident or tight supply-demand situation, and to maintainstable procurement, Sanix Group takes into account the unique risks and characteristics of each country and region andimplements the following measures:(1) Management of safety stock quantities set for each item
(2) Promotion of multi-supplier system(3) Consideration of alternative products(4) Identifying distribution routes■Speciﬁc compliance initiatives in sales activities■ Compliance Committee
The Compliance Committee is chaired by the representative
director, vice-chaired by the general manager of the Legal
Department and composed of the general managers of eachbusiness division and other appointed members.
Since FY2006, the committee has met 77 times (as of March
2022). The Committee also collaborates with the Board of
Directors and the Internal Control Committee as necessary.

Compliance Committee members (as of March 2022)
Chairman

Representative
Director

Vice
Chairman

GM of Legal
Department

GM of SE Division GM of HS Division
GM of ES Division GM of ERD Division
GM of Organic Waste Liquid Treatment Division
GM of New Electric Power Division
Appointment committee* GM = General manager■ Voluntary Code of Conduct
In order to provide high quality services in compliance, each business unit has established its own set of voluntary standards of conduct, which are shared within thebusiness unit. The voluntary code of conduct is revised as necessary in response tochanges in social conditions, such as amendments to relevant laws and regulations.

■ Compliance promotion council
he Compliance promotion council meets monthly
at each site.

■Notiﬁcation System■ Internal Reporting System
We have established an internal reporting system with the aimof contributing to the early detection and correction of illegal
activities and strengthening compliance management. This
reporting system can be used not only by employees of Sanix
Group but also by their family members and subcontractors in
the construction industry. In FY2021, we received 4 reports fromdomestic and overseas Group companies, all of which wereresolved through the appropriate procedures. None of thesecases aﬀected the ﬁnancial statements.

■Information security
Personal data protection
Since its establishment, Sanix Grouphas been dealing with a large
number of individual customers.
For this reason, we consider it oursocial responsibility to properly
manage personal information. We
have therefore established a
Personal Information Protection
Policy separate from our Information Security Policy, which isthoroughly communicated to all
executives, employees and relatedparties.

(This photo was taken before the Corvid19 disaster)

We have also set up a consultation service on the web for ourconstruction subcontractors.

▲Door-to-door sales representativeeducation instructor certiﬁcate

68

In the HS Division, which is engaged in direct sales, the head of all sales branches andall sales and customer management staﬀ have been registered for JDSA-approved
training by the Japan Direct Selling Association. (As of April 30, 2022, 255 employees
have obtained this certiﬁcation.)In addition, as of March 31, 2022, 23 "door-to-doorsales staﬀ education instructors" have been assigned to the company as a measure toenhance and strengthen the registration system, to ensure thorough education related
to the registration system and to maintain the education level.
＜What is JDSA accredited training and registration?＞
The purpose of this system is to educate and improve the quality of sales staﬀ. Aftercompleting the education curriculum set by the Japan Direct Selling Association andpassing its examination, the salesperson is registered and issued with a "JDSA Certiﬁed
Education Registration Certiﬁcate".

JDSA Accredited Education Registered Education Curriculum

Training Items

Employee education on information security
Sanix Group believes that it is essential to provide continuous training to all employees on information security and thehandling of personal information. We provide training and education at the start of employment, as well as regular e-learne-learn
ing sessions after employment. In addition, we make eﬀorts to establish the content of education by linking the "results of the
conﬁrmation test on the importance and necessity" of information security with the granting of access rights to internal
systems.
At the same time, we prepare and implement appropriate training programs for each subject and purpose of information
security measures, which are becoming increasingly important.

Part of the voluntary code of
conduct for household services
is published on our website.

■ Direct Sales Staﬀ Training

Personal data management system
Personal data shall be collected within the scope of the business conducted by theGroup, for clearly deﬁned purposes, and by lawful and fair means to the extent
necessary to achieve those purposes. The personal data subject to management
shall be all personal information processed in the company. As part of our personal
information management system, we have appointed a Personal Information
Protection General Manager who has responsibility and authority for the implementation and operation of the Personal Information Protection Policy.
Under his/her direction, a personal information handling manager has been
appointed in each business unit and a personal information protection supervisor
has been appointed in each division and department to ensure comprehensive
management of personal information. Regular audits are carried out by the Audit
Manager (impartial and objective person), who is authorized to conduct and reporton audits, to assess operational risks and oversee the operation of the business.

In addition to the Act on Speciﬁed Commercial
Transactions, which is closely related to ourbusiness activities, all employees share theiropinions on themes such as voluntary standards ofconduct and improving customer satisfaction, inorder to improve and establish an awareness ofcompliance.

Specialty

The history of the company and its role insociety / Professional training (productknowledge etc.) required for our industry

Curriculum

Type of Course

Remarks

History of the Company - Role (70 min.)General Architecture (140 min.)Each participant musttake the entire
curriculum via"e-Learning" within acertain period oftime, and then takeand pass theassessment test.

We use textbooks
prepared by us
and audited by
the Japan
Door-to-Door
Sales Association.

Termite (70 min. x 2)
Foundation repair (70 min.)
Ventilation (70 min. x 2)
Heat shielding and insulation (70 min.)Standards

What to expect from door-to-door salesperson / Laws and regulations to be observed/The main points of the relevant reports

Speciﬁed Commercial
Transactions Law, Installment
Sales Law, etc. (360 min.)Group training.

69

About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section■BCP（Business Continuity Planning）
The Sanix Group has established a Business Continuity Plan to ensure the safety of employees and their families inthe event of natural disasters such as earthquakes, windstorms, ﬂoods, and ﬁres, as well as to minimize damage tobusiness assets and ensure the continuation or early recovery of business operations, thereby maintaining the trustof stakeholders, ensuring the company's survival, and ultimately contributing to social and economic development.
Sanix Group's basic policy in the event of a disaster(1)Place the highest priority on ensuring the lives and safety of employees and theirfamilies.
(2)Minimize damage to the business and restore operations as soon as possible.
(3)Act in a manner such that the relationship of trust with our customers comes ﬁrst.
(4)Fulﬁll the social responsibilities required of the Sanix Group.

From the BCP disaster drill at Takeo
Factory (manufacturing and logistics
facility) (2021.12.7)

Data section

We regularly implement various initiatives to raise employees' awarenessof disaster prevention and strengthen emergency preparedness.
Examples of initiatives
・Safety conﬁrmation application training for employees
・Inventory of stockpiles in case of disaster・Conﬁrmation and updating of evacuation sites, emergency contact
numbers, and evacuation routes at each business location
・Survey of employees' awareness of disaster prevention
In April 2020, we established an internal task force for new coronavirus
countermeasures, and are taking measures against new coronavirus.

Assuming ﬂooding caused by torrential
rainfall in a linear rain zone, the program
included not only evacuation but also the
movement of supplies in the event of adisaster.

■Handling of Serious Accidents Involving Products, etc.
We have established "Rules for Handling Major Accidents Involving Products and Other Major Accidents" to deal
with serious accidents that may occur due to products (including those manufactured by other manufacturers) andinstallation services that we have sold or provided to our customers*.
*General consumers as deﬁned by the Consumer Products Safety Act.

Basic Policy for Responding to Major Accidents Involving Products, etc.

From the simulation training on how
to deal with a major accident involving
products, etc. (March 9, 2022)(1)We shall make it our basic policy to "put the customer ﬁrst" andstrive to respond in good faith to serious accidents involving products and other products.
(2)If a serious product-related accident is caused by another party, we
will handle the facts properly and will not be complicit in or cooperate with such other party's concealment of the accident, misrepresentation, or any other wrongful act that could lead to such concealment or misrepresentation.
(3)Even if there is no bodily injury to our customers or third parties, wewill act with an awareness of the risk that such an accident may
occur in the future.
Simulation training is conducted toensure a prompt and accurate initial
response to incidents.

70

Financial data highlights
Share information
Company information

Simulation of a ﬁre that broke out at a customer's home, with the assumption thatthe ﬁre department received information that a ﬁre was seen in the vicinity of PV
power generation peripheral equipment. After receiving the ﬁrst report, we simulated
a series of steps, including reporting and communicating with related departments,
instructing safety measures, and convening an emergency meeting. The issues identiﬁed as a result were immediately reﬂected in the improvement plan.

71

About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

Financial data highlights（Million yen）

【 Fiscal Year 】

FY2012FY2013

FY2014FY2015FY2016

Net sales

43,366

84,221

95,62961,91650,955

Operating proﬁt

1,870

4,508

△3,142△2,2291)（Million yen）

【 Fiscal Year 】

FY2017FY2018FY2019FY2020

FY2021

Net sales

49,99350,71952,531

49,41650,936

1,036

Operating proﬁt

1,246

1,224

2,791

2,325

△2,618

EBITDA*

1)

1,939

1,735

3,714

3,397

△1,365

1,180

240

1,850

1,965

△3,449

EBITDA*

2,462

5,045

△2,598△3,151

1,633

Net proﬁt attributable to owners of the parent

1,575

2,964

△4,966△4,604416

Net proﬁt attributable to owners of the parent

386

547

887

918

688

Depreciation and amortization

709

808

914

1,097

1,509

Capital expenditure

1,102

2,014

1,825

455

599

Capital expenditure

594

1,080

2,742

3,038

2,776

Cash ﬂows from operating activities

2,184

4,933

△1,794△5,403

1,668

Cash ﬂows from operating activities

2,184

△25

4,080

2,756

△3,067

Cash ﬂows from investing activities△222△3,271△1,181

1,062

△409

Cash ﬂows from investing activities

171

△947

△2,154△2,564△2,937

Cash ﬂows from ﬁnancing activities

230

2,433

647

1,288

1,437

Cash ﬂows from ﬁnancing activities△2,156392△1,110

△743

4,447

Depreciation and amortization【 At the end of the period 】【 At the end of the period 】

Total assets

29,19655,31649,12031,24831,645

Total assets

29,93831,00932,51432,94034,953

Tangible ﬁxed assets

12,32614,181

15,09912,417

12,278

Tangible ﬁxed assets

11,926

12,057

13,73915,322

16,382

Interest-bearing debt

7,467

10,415

11,186

12,874

14,634

Interest-bearing debt

12,78013,474

12,397

11,462

15,268

Net assets

8,837

11,827

7,331

2,629

2,845

Net assets

4,076

4,193

6,056

8,097

4,732

【 Per share information 】【 Per share information 】

Net proﬁt per share

33.01

62.13

△103.98△96.328.70

Net proﬁt per share

24.68

5.02

38.72

41.11

△72.16

Net assets per share

184.62247.17152.74

54.34

58.86

Net assets per share

84.54

87.08

126.15168.84

98.52

Dividend per share

0.00

0.00

0.00

0.00

0.00

Dividend per share

0.00

0.00

0.00

0.00

0.00

34.4%

5.8%

36.3%

27.9%

△54.0%

3.3%

3.9%

8.2%

6.4%

△8.5%

【 Financial ratios 】【 Financial ratios 】
2)

Return on equity (ROE)*

19.8%

3)

Return on assets (ROA)*

7.1%
4)

28.8%
10.2%

△52.0%△6.6%△93.0%
△4.9%

15.4%

Return on equity (ROE)*2)

2.9%

3)

Return on assets (ROA)*

4)

Return on invested capital (ROIC)*

9.5%

14.0%

△23.1%△15.7%

3.4%

Return on invested capital (ROIC)*

8.6%

2.3%

10.8%

11.2%

△14.6%

Shareholders' equity ratio (%)

30.2%

21.3%

14.9%

8.3%

8.9%

Shareholders' equity ratio (%)

13.5%

13.4%

18.5%

24.5%

13.5%

Number of employees (average for the period)

1,697

2,435

4,092

2,850

1,952

Number of employees (average for the period)

1,777

1,876

2,005

2,052

2,073

*Notes1) EBITDA: Earnings before taxation + interest paid + depreciation expense2) Return on equity (ROE): Net income attributable to shareholders of the Company / Average shareholders' equity at the beginning and end of the period x 100
3) Return on assets (ROA): Ordinary income / Average total assets at the beginning and end of the ﬁscal year x 100
4) Return on Invested capital（ROIC）：Operating income after tax ÷ (Average shareholders' equity at beginning and end of period + Average interest-bearing
debt at beginning and end of period) × 100

72

73

About Sanix Group

Value Creation

Growth Strategy

Management Foundation

Data Section

Financial data highlights（Million yen）

【Consolidated Balance Sheet】
FY2020

FY2020

FY2021

Net sales

49,41650,936FY2021

AssetsCash and deposits

5,526

3,914

Cost of sales

32,26338,842

Notes and accounts receivable

5,228

6,593

Gross proﬁt

17,15312,093Inventories

3,010

2,745

Selling, general and administrative expenses

14,827

14,711Other assets

1,136

1,298

Operating proﬁt

2,325△2,618

Total current assets

14,633

14,551Non-operating income

195

137

Buildings and structures (net)

1,624

2,818

Non-operating Expenses

429

420

Machinery, equipment and vehicles (net)

3,002

4,235

Ordinary income

2,091△2,900

Land

8,094

8,314

Extraordinary income

0

0

877

800

Extraordinary losses

0

226

1,559

41

Income before income taxes and minority interests

2,091△3,127163

170

Income taxes

189

246

Total tangible ﬁxed assets

15,322

16,382

Income tax adjustments

△62

78

Total intangible ﬁxed assets

773

701

Net income

1,964△3,452

Total investments and other assets

2,210

3,318

Minority interests△0△3

Total ﬁxed assets

18,306

20,401

Net proﬁt for the year attributable to owners of the parent

1,965△3,449Total assets

32,94034,953
FY2020

FY2021

1,964△3,452

Unrealized gains on available-for-sale securities

23

△11

91

99

Lease assets (net)
Construction in progress
Other (net)【 Consolidated statement of comprehensive income 】

Liabilities（Million yen）

Notes and accounts payable-trade

4,037

3,798

Short-term loans payable

6,630

10,151

Current portion of long-term debt

230

386

Lease obligations

476

510

Other liabilities

5,487

6,871

Foreign currency translation adjustments

Total current liabilities

16,861

21,718Adjustment for retirement beneﬁts△39

5

Bonds payable

500

700

Total other comprehensive income

7592Long-term debt

2,417

2,297

2,040

△3,360

Lease obligations

1,208

1,022

Comprehensive income attributable to owners of the parent 2,041△3,357

Other liabilities

3,855

4,483

Comprehensive income relating to non-controlling interests

Total long-term liabilities

7,981

8,503

Total liabilities

24,84230,221

Net proﬁt for the year
Other comprehensive income

Comprehensive income

Capital stock△0△3【 Selling, general and administrative expenses】

Total net assets（Million yen）

FY2020

FY2021Advertising expenses

276

353

Allowance for doubtful accounts

30

△14

14,041

14,0411

1Retained earnings△4,541△7,995

Personnel expenses

9,228

8,826

Treasury stock△1,481△1,481

Rental expenses

1,007

1,030

8,020

4,566

Depreciation and amortization

294

345

Valuation and translation adjustments

50

142

Communication and transport costs

665

669

Minority interests

25

22

Vehicle expenses

343

367

Total net assets

8,097

4,732

Other

2,980

3,135

Total liabilities and net assets

32,94034,953

Total SG&A expenses

14,827

14,711

Capital surplus

Total shareholders' equity

74（Million yen）

【 Consolidated income statement 】

75

About Sanix Group

Financial data highlights

Value Creation

Growth Strategy

Management Foundation

Data Section

Share information （as of end Mar 2022）【Consolidated statement of cash ﬂows 】（Million yen）

FY2020

FY2021

Income before income taxes and minority interests

2,091△3,127

Depreciation and amortization

1,097

1,509

Extraordinary losses−

226

Increase (△＝decrease) in liabilities for retirement beneﬁts

91

109

Interest and dividend income received

△18

△14

Interest paid

208

251

Decrease (△＝increase) in trade receivables

225△1,332

Decrease (△＝increase) in inventories

752

301

Decrease (△＝increase) in other current assets

73

△88

Increase (△＝decrease) in trade payables

251

Increase (△＝decrease) in accrued liabilities

Cash ﬂows from operating activities

Status of shares
Total number of shares authorized
Total number of shares issued
Total number of shareholders

163,500,000 shares
48,919,396 shares
14,868 person

Major shareholders (top 10)
Name or title

Number ofshares owned（1000 shares）

Ratio of shares held to the total
number of shares issued(excluding treasury shares) (%)

1

Bion Corporation

8,716

18.23%△390

2

Hiroshi Munemasa

6,454

13.50%

△898

138

3

HIKARI TSUSHIN,INC

3,582

7.49%

Other

△231

△339

Sub-total

3,643△2,756

4The Master Trust Bank of Japan, Ltd (Trust Account)

3,184

6.66%

17

14

5

The Sanix Mutual Beneﬁt Association, Inc.

1,700

3.55%

Interest paid

△211

△243

6

Sanix Employees' Shareholding Association

1,125

2.35%

Income taxes paid

△708

△172

15

90

7

UH Partners 2 Inc.

756

1.58%

2,756

△3,067

8

THE NISHI-NIPPON CITY BANK, LTD

536

1.12%

9

KOREA SECURITIES DEPOSITORY-EBEST

1.04%

△851

(Standing representative: Citibank, N.A., Tokyo Branch, Direct Custody - Clearing Business Department, Jun Ishikawa）

498

△702
909

747

Munemasa Shuzo Co.,Ltd.

320

0.66%

△2,247△2,494

8

20

Payments for acquisition of intangible ﬁxed assets

△471

△140

Cash ﬂows from other activities

△62

△217

△2,564△2,937

Interest and dividends received

Refund of income taxes
Cash ﬂows from operating activities
Cash ﬂows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Payments for acquisition of tangible ﬁxed assets
Proceeds from sale of property, plant and equipment

Cash ﬂows from investing activities
Cash ﬂows from ﬁnancing activities
Increase (△＝decrease) in short-term borrowings

10

Share distribution status

Shareholder memo

■By shareholding (in thousands of shares)

Fiscal year

April 1st-March 31stof the following year

Record date fordividends of surplus

31st March
30th June
30th September
31st December

Ordinary General
Meeting of Shareholders

June every year

Listed stock exchangeTokyo Stock Exchange
Prime Market
Fukuoka Stock Exchange

Method of Public NoticeElectronic public notice
Public notice URL
https://sanix.jp

Individuals and others

24,308 （50.92%）

Other legal entities

15,951 （33.41%）

Financial Institutions

4,393 （9.20%）

Foreign companies, etc.

1,712 （3.58%）△2,895

3,521

Proceeds from long-term borrowings

2,420

297

Repayment of long-term borrowings

△963

△261

−

1,000

−

△600

△338

△476

1,032

967

1 unit or more

1,425 （2.98%）

△743

4,447

5 units or more

1,093 （2.29%）

52

39

10 units or more

5,327 （11.16%）

50 units or more

2,410 （5.05%）

100 units or more

5,328 （11.16%）

500 units or more

1,580 （3.31%）

1,000 units or more

4,512 （9.45%）

5,000 units or more

26,056 （54.58%）

Proceeds from issue of bonds
Redemption of bonds
Repayments of ﬁnance lease obligations
Other
Cash ﬂows from ﬁnancing activities
Eﬀect of exchange rate changes on cash and cash equivalents
Net increase (△＝decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year△498

△1,517

5,259

4,760

4,760

3,243

Financial Instruments Dealers 1,369 （2.86%）■By shareholding (in thousands of shares)(However, in the event of an
accident that cannot beannounced electronically or
any other unavoidable reason,
the announcement will bemade to the Nihon Keizai
Shimbun.)※自己名義株式（1,114,800株）及び単元未満株式を除いて集計しています。

76

77

About Sanix Group

Company information （As of March 31, 2022）

Value Creation

Growth Strategy

Management Foundation

Data Section

Sanix Group network spread nationwide

About Us

We have a detailed follow-up system with more than 100 networks nationwide.

Trade name

SANIX INCORPORATED

Headquarters

2-1-23,Hakata-eki Higashi,Hakata-ku,Fukuoka
812-0013,Japan

Established

September 1978

Capital14,041.83 million yen

Number of employees

2,054people（Consolidated）

HS: 4 HQs, 53 sites

ES: 12 sitesSE: 2 HQs, 37 sites

ERD : 18 factories ※ Includes 1 power plant, 1 ﬁnal disposal site

Number of bases, main bases
HS division

４ HQs, 53 sites

ES division

12 sites

SE division

２ HQs, 37 sites

ERD division

18 factories

EB division

５ sitesEB: 5 sites（As of March 31, 2022）

Tomakomai
Tomakomai Power Plant(SANIX ENERGY Inc.)
Landﬁll site (C & R Inc.)SANIX HOKKAIDO KANKYO Inc.
(Plastic fuel factory)

Group Companies
Voting rights
ownership
rship
ratio

Relatedbusiness

Main business contents

HS•SE

Mainly manufactures and sells termite control chemicals

100.0%0%

SHANRI (SHANGHAI) ENERGY SCIENCE ANDTECHNOLOGY CO.,LTD

SE

Mainly sales and import / export of solar cell modules
and related parts

100.0%%SHANRI (JIASHAN) ENERGY SCIENCE ANDTECHNOLOGY CO.,LTD

SE

Mainly production of solar cell modules and related parts

100.0%（100.0%）HOKKAIDO SANIX KANKYO INCORPORATED

ERD

Mainly waste plastic fuel processing for
Sanix Energy Tomakomai power plant

98.9%（98.9%）SANIX ENERGY INCORPORATED

ERD

Mainly, our power generation businessusing crushed plastic as fuel

98.9%

SANIX SOLUTION INCORPORATED

ERD

Consulting on waste treatment and sales of chemicals

C & R INCORPORATED

ERD

Final disposal and recycling of industrial waste,
cleaning of oil tanks, etc.

98.9%
（98.9%）SE WINGS INCORPORATED

ERD

Purchase of electricity generated by
SANIX ENERGY INCORPORATED• Retail business

98.9%（98.9%）SANIX TAIYOUKOU DENKI INCORPORATEDEB

Sales business that combines our electricity retail businessand residential solar power generation system

100.0%SANIX SOFTWARE DESIGN INCORPORATED

HS•SE

Mainly software development and computer sales

100.0%

Company NameSUNAIM INCORPORATED

SE・HS・ES sites
ERD sites
EB sites※For SE, HS, and ES sites, locations with thesame adress are combined into one
location.
(This does not correspond to the numberof locations shown above)

67.5%※The ﬁgures in parentheses in the percentage of voting rights held indicate the percentage of indirect ownership.

Hiroshima
Chugoku Regional Headquarter(HS Division)

Fukuoka
SE / HS / ES Business Headquarter
HS Business Headquarter
SE Business Headquarter
EB Business Headquarter
Kyushu Regional Headquarter(HS Division)West Japan Regional Headquarter (SE Division)

Tokyo (Minato-ku)
ES Business Headquarter
ERD Business Headquarter
East Japan Regional Headquarter(SE Division）

Visit our WEB site
For more information about us, please visit our WEB site.
Osaka
Sanix company information
https://sanix.jp/lang̲en/
Financial Summary
https://sanix.jp/lang̲en/ﬁnancial.html

78

Kansai Chukyo Regional Headquarter(HS Division)

Matsuyama
Shikoku Regional Headquarter(HS Division)79