Code︓4651

Financial Results Briefing For
the Nine Months Ended December 31, 2023

SANIX INCORPORATED
February 14, 2024

Contents
1. Financial Results of FY2023 3Q

P.3

2. Financial Results forecast of FY2023

P.20

3. Topics

P.23

Supplementary materials
4. （Business Structure）

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

1

Financial Results for Nine Months Ended
December 31,2023

Copyright© SANIX INCORPORATED

2

Financial Results of FY2023 3Q
decrease in sales, increase in profit year on year
Slight decrease in sales, but significant increase in profitSales remained at the same level as the same period of the previous fiscal year, despite the impact (down
54.6% year on year ) of business restructuring in the PPS(Power Producer and Supplier) Division.
In terms of profit (operating profit), the Residential Environment Area and Resource Circulation Area recorded a
year-on-year increase of approximately 36% respectively, which led to a year-on-year increase of 117.6% overall.
This was attributable particularly to an increase in the unit price of the electricity sold by the Tomakomai power
plant.

Millions of Yen

FY2022
3Q Results

FY2023
3Q Results

FY2023
3Q Plan

YoY

Plan ratio

Net Sales

34,34534,27535,767

99.8%

95.8%

Gross Profit

11,937

12,99913,107108.9%

99.2%(Gross Profit Margin)

34.8%

37.9%

36.6%

Operating Profit

1,111

2,419

2,257

217.6%

107.2%(Operating Profit Margin)

3.2%

7.1%

6.3%

Ordinary Profit

935

2,242

2,090

239.6%

107.3%(Ordinary Profit Margin)

2.7%

6.5%

5.8%

Profit (loss) attributableto owners of parent

649

1,806

1,589

278.2%

113.7%(Net Profit Margin)

1.9%

5.3%

4.4%

Copyright© SANIX INCORPORATED

3

Net Sales of FY2023 3Q
Net Sales Composition
Millions of Yen

FY2023
3Q Results

FY2022
3Q Results

FY2023
3Q Plan

YoY

Plan ratio

Net Sales

34,34534,27535,767

99.8%

95.8%

Residential Environment

11,707

11,815

13,052100.9%

90.5%

Energy10,019

8,481

8,992

84.6%

94.3%

Resource Circulation

12,61913,97813,721110.8%

101.9%

HS
25.8%

ERD
40.8%

40.8%

34.5%
FY2023
3Q

24.7%
PPS
5.7%

Residential
Environment

Energy【ＨＳ】

Resource
Circulation【millions of Yen】

+175

-334

＋820

34,345

FY2022 3Q

SE
2.8%

PV
19.0%

■ Year-on-Year Comparison

+267

ES
5.9%

【ＥＳ】

【ＳＥ】

-2,358+1,35934,275

【ＰＰＳ】

【ＥＲＤ】

FY2023 3Q【ＰＶ】

Residential Environment

EnergyResource Circulation+108-1,538＋1,359Copyright© SANIX INCORPORATED

4

Operating Profit of FY2023 3Q
Operating Profit Margin
FY2022
3Q Results

FY2023
3Q Results

Operating Profit

1,111

2,419

2,257

217.6%

107.2%

Residential Environment

913

1,243

1,822

136.2%

68.2%

Energy

116

19

3

17.1%

577.0%

Resource Circulation

2,343

3,200

2,537

136.6%

126.1%

Unable to allocate(2,260)(2,044)(2,106)ーーMillions of Yen

FY2023
3Q Plan

YoY

Plan ratio

22.9%

18.6%
10.5%
7.8%

1.2% 0.2%
Residential
Environment

EnergyFY2022 3Q■ Year-on-Year Comparison

Resource
Circulation

FY2023 3Q【millions of Yen】

＋216

1,111
FY2022 3Q

-13

＋23

＋54

【ＥＳ】

【ＳＥ】

【ＰＶ】

+320

【ＨＳ】

Residential Environment＋330

Energy

-150

+856

【ＰＰＳ】

【ＥＲＤ】

2,419

【Group】

FY2023 3Q

Resource Circulation-96
Copyright© SANIX INCORPORATED+856
5

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

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

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

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

Residential Environment Area
Net Sales Composition

Termite control construction

Under-floor/attic
ventilation system

SE
8%

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

ES
17%

Pest control and removal

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

Net Sales
FY2023 3Q¥11,815 million

HS
75%

Residential solar power
generation system

Storage batteries

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【 Residential Environment Area 】【 HS Division 】 (Year-on-Year Comparison)
 increases in sales and profit
Sales increased, reflecting the solid performance of termite control construction andunder-floor/attic ventilation systems due to the strengthening of sales policies focused on
the development of new customers and the acceleration of initiatives with an eye toward
the enhancement of its customer foundation.
Profit increased, reflecting not only higher sales but lower subcontracting costs andreduced fixed costs such as SG&A expenses.

Millions of Yen

Net Sales

FY2022
3Q Results

FY2023
3Q Results

8,591

8,859

FY2023
3Q Plan

9,662【 millions of Yen 】
YoY

103.1%

Plan ratio

91.7%

2,781

Termite control
construction

2,991

3,236

3,224

108.2%

100.4%

Under-floor/
attic ventilation system

2,136

2,246

2,574

105.1%

87.3%

Foundation Repair/
Home Reinforcement System

1,211

1,167

1,456

96.3%

80.2%

Others

2,251

2,209

2,407

98.1%

91.7%

Gross Profit

5,151

5,430

5,933

105.4%

91.5%

956

1,277

1,660

133.6%

76.9%

Operating Profit

3,344

651

1Q

Copyright© SANIX INCORPORATED

231
2Q

2,465

2,857

72
3Q

FY2022381
4Q

3,027 2,956

2,876

445

445

385

1Q

2Q

3Q

FY2023

Net Sales(Plan)

Net Sales(Results)

Operating Profit(Plan)

Operating Profit(Results)7

【 Residential Environment Area 】【 ES Division 】 (Year-on-Year Comparison)
 increases in sales, decrease in profit
Sales increased, reflecting the solid performance of building water supply and drainage
repair work due to the strengthening of relationships with business partner such as theowners of buildings and condominiums and property management companies. However,profit decreased due to product lines consisting of products with high cost ratios.

Millions of Yen

Net Sales
Anti-rust equipment
installation
Others

FY2022
3Q Results

FY2023
3Q Results

1,832

2,007

FY2023
3Q Plan

1,956【 millions of Yen 】
YoY

109.6%

Plan ratio

102.6%

641

-13

22

38

83

1Q

2Q

3Q

4Q

547

790

749

920

94.8%

81.5%

1,041

1,257

1,036

120.7%

121.4%

Gross Profit

954

963

1,084

100.9%

Operating Profit

47

34

127

71.8%

88.8%
26.8%

743

643

Copyright© SANIX INCORPORATEDFY2022

618

-10
1Q

707

680

36

7

2Q

3Q

FY2023

Net Sales(Plan)

Net Sales(Results)

Operating Profit(Plan)

Operating Profit(Results)8【 Residential Environment Area 】【 SE Division 】 (Year-on-Year Comparison) decrease in sales, increase in profit
Although sales of storage batteries and replacement of power conditioners for existing
photovoltaic power generation systems increased, the sales level temporarily declined
due to the allocation of personnel to the development of business partners. Meanwhile,the deficit narrowed due to improved profitability.

【 millions of Yen 】

FY2022
3Q Results

FY2023
3Q Results

1,283

948

1,434

73.9%

66.2%

Gross Profit

435

257

486

59.1%

52.8%

Operating Profit

(90)

(67)

34

Millions of Yen

Net Sales

FY2023
3Q Plan

YoY

Plan ratio

ー

491

443

401

390

-44

-55

9

43

1Q

2Q

3Q

4Q

ー

FY2022

Copyright© SANIX INCORPORATED

292

301

354

-33

-31

-3

1Q

2Q

3Q

FY2023

Net Sales(Plan)

Net Sales(Results)

Operating Profit(Plan)

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

Energy Area
 Installation of photovoltaic power generation equipment for selfconsumption for corporate clients

 Maintenance of existing photovoltaic power equipment/plants

 Development for photovoltaic power generation for energy companies

 Retail sales of electric power

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

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

Energy Area
Net Sales Composition

Self-consumption type / PPA

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

Development of non-FIT
power sources

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

Ｏ＆Ｍ

PPS Division

PPS
23%
Net Sales
FY2023 3Q¥8,481 million

PV
77%

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

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10

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

Millions of Yen

Net Sales
Sales and installationof PV system
Wholesaleof PV system
Others

FY2022
3Q Results

FY2023
3Q Results

5,696【 millions of Yen 】

FY2023
3Q Plan

YoY

Plan ratio

6,516

7,192

114.4%

90.6%

5,538

6,416

7,034

115.9%

91.2%

88

30

90

34.4%

34.0%

69

67

100.6%

103.1%

1,284

1,444

1,488

112.5%

97.1%

(121)

(67)

0

ー

ー

69

Gross Profit
Operating Profit

2,929
2,287

2,064 2,087

1,691 1,716

-67

-91

1Q

2Q

Due to the sharp growth of demand for electric wires for construction, procuring newelectric wires for construction became difficult in Japan after November 2023, whichcaused a variety of construction projects to be delayed. Construction delays have also
occurred in the Company’s solar power generator installation work. (The situation is
gradually improving.)

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37

144

3Q

4Q

FY2022

2,365

-41

-8

-17

1Q

2Q

3Q

FY2023

Net Sales(Plan)

Net Sales(Results)

Operating Profit(Plan)

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

Millions of Yen

Net Sales

FY2022
3Q Results

FY2023
3Q Results【 millions of Yen 】

FY2023
3Q Plan

YoY

Plan ratio

4,322

1,964

1,800

45.4%

109.1%

Gross Profit

378

177

114

46.9%

155.8%

Operating Profit

238

87

3

36.9%

ー

1,624
1,289

1,408
1,058
583

-28
1Q

161

104

2Q

3Q

FY2022

Copyright© SANIX INCORPORATED

751

1

32

36

4Q

1Q

2Q

629
18
3Q

FY2023

Net Sales(Plan)

Net Sales(Results)

Operating Profit(Plan)

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

Recycling resources instead of abandoning Recycling of waste plastics

 Purification of waste liquid and production of recycled fuel

 Power generation from waste plastic fuel

 Final disposal of industrial waste

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

Resource Circulation Area
Net Sales Composition

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

Plastic fuelResource recycling power generation system

Landfill Others 4%
6%

Waste liquid
treatment
11%

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

Final disposal site

Net Sales
FY2023 3Q¥13,978 million

Power plant
26%

Waste liquid treatment / recycling

Plastic fuel53%

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

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13

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

Millions of Yen

FY2022
3Q Results

FY2023
3Q Results

FY2023
3Q Plan【 millions of Yen 】
YoY

Plan ratio

Net Sales

12,61913,97813,721110.8%

101.9%

Plastic fuel

7,547

7,411

7,683

98.2%

96.5%

Power Plant

2,344

3,668

3,543

156.4%

103.5%

Waste liquid treatment

1,564

1,591

1,574

101.7%

101.1%

Landfill

799

753

539

94.2%

139.7%

Others

362

553

381

152.7%

145.1%

Gross Profit

3,733

4,725

3,999

126.6%

118.2%

Operating Profit

2,343

3,200

2,537

136.6%

126.1%

4,071

4,146 4,400

3,899

710

847

784

810

1Q

2Q

3Q

4Q

Copyright© SANIX INCORPORATEDFY2022

4,495

4,703 4,779

1,484 1,218
497
1Q

2Q

3Q

FY2023

Net Sales(Plan)

Net Sales(Results)

Operating Profit(Plan)

Operating Profit(Results)

14

Various transitions in the ERD Division
Tomakomai power plant operating status

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

Total electricity generation(GWh)

120

1200

90

60

100

1000

80

50

80

800

70

40

60

600

60

30

40

400

50

20

20

200

40

10

0

30

0

1Q

2Q

3Q

4Q

1Q

FY2021
boilers

Statutory
inspection turbines
Periodic
inspection

•

2Q

3Q

4Q

1Q

FY2022

〇

2Q

3Q

4Q

FY2023
〇
〇

〇

〇

〇

1Q

2Q

3Q

4Q

FY2021

1Q

2Q

3Q

FY2022

4Q

1Q

2Q

3Q

4Q

0

FY2023

Amount of waste plastics accepted(Plan)

Amount of waste plastics accepted(Results)

Unit price of treatment(Plan)

Unit price of treatment(Resuts)〇

repair expense of ERD(Plan)

repair expense of ERD(Results)

Total electricity generation(Plan)

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

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

Copyright© SANIX INCORPORATED

15

Consolidated financial condition

The equity ratio improved 4.5 percentage points to 22.5%.

As ofMarch 31,2023

As ofDec. 31,2023

Difference

Current Assets

13,683

14,612+ 928

106.8%

Non-Current Assets

19,902

20,555+ 652

103.3%

33,58635,167+ 1,581104.7%

Current Liabilities

16,382

16,767+ 384

102.3%

Non-Current Liabilities

11,135

10,471

- 664

94.0%

Total Liabilities

27,51827,238

- 279

99.0%

Total Net Assets

6,068

7,929

+ 1,861130.7%

Total Liabilities and Assets

33,58635,167+ 1,581104.7%

Millionos of Yen

Total Assets

Copyright© SANIX INCORPORATED

Ratio

16

Capital investment / Depreciation

FY2022
3Q Results

FY2023
3Q Results

Residential Environment

50

15Energy59

128

Resource Circulation

887

1,798

Headquarter

56

149

Capital investment

1,053

2,090

Depreciation

1,318

1,214

Millions of Yen【 Major capital investment 】
Investment related to the disposal facilities ofplastic waste
613 Million YenInvestment related to the Landfill
592 Million YenInvestment related to the Tomakomai power plant
432 Million Yen

Copyright© SANIX INCORPORATED

17

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

personnel

As of Dec. 31, 2023
sites

personnel

personnel
difference

HS Division

63

853

63

862

＋9

ES Division

12

160

12

167

＋7

SE Division

14

81

14

77

-4

PV Division

35

254

30

259

＋5

PPS Division

1

15

1

13

-2

ERD Division

18

444

19

460

＋16

Headquarter

―

247

―

234

-13

Total

―

2,054

―

2,072

＋18

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

Copyright© SANIX INCORPORATED

18

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

Copyright© SANIX INCORPORATED

19

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

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

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

Energy Area

Resource
Circulation Area

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



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



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

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



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

Copyright© SANIX INCORPORATED

20

Important Management Indicators
FY2019Results

FY2020Results

FY2021Results

FY2022
Results

FY2023Plan

Return on equity

ROE

36.3%

27.9%

―

24.8％

35.0％

Return on assets

ROA

8.2%

6.4%

―

4.5％

9.0％

18.5%

24.5%

13.5%

18.0％

22.0％

10.8%

11.2%

―

8.4％

14.0％

Equity ratio
Return on invested
Capital

ROIC(Millions of Yen)FY2020Results

FY2021Results

FY2022
Results

FY2023
Plan

Capital investment

3,083

2,776

1,566

2,400

Depreciation

1,097

1,509

1,889

1,800

Copyright© SANIX INCORPORATED

21

Topics

Copyright© SANIX INCORPORATED

22

Restructuring of the Sanix Group's businesses
Restructuring of the Sanix Group's businesses〜Toward the realization of greater growth and profitability〜

Residential Environment Area

Energy Area

Taking over the businesses of the PV Division(mainly sales and installation of solar power
generation systems for enterprises.

Taking over only the businesses of the HSDivision, ES Division and SE Division which
require a construction license.

Wholly owned subsidiary

Wholly owned subsidiary

SANIX Home Build Service Co., Ltd.
Establishment and succession on July 1, 2024 (plan)Business specializing in construction work that requires aconstruction license (repair of condominiums, large-scalerenovation work, etc.)Improvement of business efficiency and productivityEnhancement of the sales system and optimization of theinstallation management system with a view toward the
expansion of business

Release: February 14, 2024
https://sanix.jp/report/694/report.pdf

Resource Circulation Area

SANIX Engineering Co., Ltd.

Establishment on January 16, 2024 / succession on July 1, 2024 (plan)Business specializing in the sale, installation and maintenance of
solar power generation systems for enterprises.

Responding to the changes in the business environment throughflexible management decision making.

Strengthening the sales system and increasing the popularity ofsolar power generation systems with a view toward the expansionof business.

Release: January 31,2024
https://sanix.jp/report/694/report_694_827.pdf

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Efforts to realize a local decarbonized society■ Contributing to the realization of a local carbon-free society
We were selected as a company with preferred negotiation rights for the business of installing photovoltaic power generationequipment and other equipment for the Zama municipal general welfare center (PPA* business), which is a part of the Zama’smunicipal government's efforts to achieve net zero CO2 emissions by FY2050. This is the third project that we were selected for,following the installation of solar power generation equipment at two facilities owned by the city in March 2023.

＜Business scheme＞

SANIX
 We will lease roofs, etc. within facilities and install, operate andmanage photovoltaic power generation equipment.
 Installation, operation, and management expenses are covered by
the electricity fees paid by Zama City.

Zama City The center will provide its facility, including its roofs, and theelectricity generated there will be used at the center.
 Zama City will pay Sanix for the amount of electricity they use.

SANIX INCORPORATEDPPA operator

photovoltaic power
generation equipment etc.
install, operate andmanageElectricity usage

Local government

City-owned facilities*PPA: Power purchase agreement.
A scheme for a PPA operator to install, operate and maintainphotovoltaic power generation equipment on premises owned byconsumers and supply and sell the electricity generated

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

Number of industrial solar powersales and installation

Approx.

29,000

Number of residential solar powersales and installation

Approx.

Number of remote monitoring
equipment

20,000Approx.

11,000

Release: February 9, 2024
https://prtimes.jp/main/html/rd/p/000000107.000025581.html

Copyright© SANIX INCORPORATED

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Investment-for-growth initiative in the medium-term management plan
■ Progress of the investment-for-growth initiative in the medium-term management plan
Waste water business: Expansion of therecycled fuel production line.
The number of 「Recycled Oil Bio」 fuel production lines will be
increased from one to two. The expansion will becompleted within the current fiscal year.
「Recycled Oil Bio」 is recycled fuel that can be used as an alternative tofossil fuels by removing trash and sludge from industrial waste such aswaste water and sludge generated by restaurant chains, and separating
and recovering only the oil content.
Received the METI Industrial Science and Technology Policy and Environment
Bureau Director‐General's Award for the technological development andcommercialization of "Recycled Oil Bio®." !
◆ Award Summary:https://prtimes.jp/main/html/rd/p/000000105.000025581.html

Recycled fuel (Recycled Oil Bio)

Industrial waste as raw
material

Production capacity 2,160t / year

4,320t / year

Power generation business: Renovation of
turbines and generators

Start demonstration recycling of used photovoltaic
panels

Turbines and generators will be modified and replaced in the

Assuming that a large amount of used solar panels will be
generated in the 2030s, establish a technology verification linewith the aim of commercializing a solar panel reuse and recycling
business by leveraging our knowledge of solar panels and ourstrength in industrial waste disposal networks.

fiscal year ending March 31, 2026 to ensure the incorporation ofdesigns that are suitable for the characteristics of the waste
plastic fuel currently in use.

Panel recycling image

Steam turbine

Cell sheet
Extraction ofsilver and othermetals by refining

Glass
detachment

RemovalGenerator

Power generation output expect an average improvement of about 8%

Aluminum frame
Metal recycling

Wiring
Metal recycling

Copyright© SANIX INCORPORATED

Pulverizing

Splinters of glass
Glass fiber, roadbed
materials, etc.

25

Supplementary materials（Business structure）

Copyright© SANIX INCORPORATED

26

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

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

PV Div.
PPS Div.

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

Residential
Environment
 HS Div.
 ES Div.
 SE Div.

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

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

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

・Guarantee for 5 years,
・Periodic inspections once each year

New
Customers

Establishment of a customer base
1

2

3 4

5

1 2
Redisinfection

Guarantee for 5 years,
periodic inspections
once each year

Measures to prevent moisturefrom invading houses

Foundation Repair

Flow chart for customer base development
New
Customers

Under-floor/attic ventilation system

3 4

5Redisinfection

Guarantee for 5 years,
periodic inspections
once each year

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

Visits, fliers and referrals

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

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

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

Real estate managementcompany

SANIX

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

Conducting sales through realestate management companies

Introduction

Service
Major services and products
Water supply and drainage repair

Structure maintenance services

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

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

OthersMeasures to prevent
environmental pollution,
etc.

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

Pest and vermin control
service ,HACCPNew Contract

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

1st Year

Renewal rates are high due to annual
contracts

Copyright© SANIX INCORPORATED

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

Sales

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

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

Constructs

O&M(Maintenance)

・Detailed design・Installation work
・Electrical work

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

SE Division for housing(less than 10 kW)

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

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

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

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

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

Self-consumption

On-site PPA

Off-site PPA

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

Third party-owned(TP0)

selfconsignment
Private lines

Partialretailer supply

retailer

Partial supply

X Co.

retailer

Partialsupplyretailer
Land owned by X Co.

Partial supply

X Co.

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

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

Privately-owned(PV owned by X Co.)

retailerretailer
Land owned by X Co.

selfconsignment
Private lines

PartialsupplyLand owned by X Co.
retailer

Partial supply

X Co.

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

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

Waste plastic processing businessElectric power company
and trading firm

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

Plastics Resource Development
factories

paper manufacturers

Sales ofmaterials
Operating company

Supply of waste
plastic fuelSale ofelectricity
Tomakomai power plant

Unrecyclable
materials
Company engaging
in final disposal

Final disposal ofincinerated ash

C&R(Landfill）【 Tomakomai power plant 】

Acceptance of external
partiesWaste generator

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

Paid collectionof waste liquid
Hibiki Factory(Kitakyushu city）

Reuse of oil

Entrustment ofdisposal operations

Operating company

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

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

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

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