Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

August 9, 2024

Consolidated Financial Results
for the 3 Months Ended June 30, 2024
(Under Japanese GAAP)
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

SANIX INCORPORATEDTokyo Stock Exchange / Fukuoka Stock Exchange
4651
https://sanix.jp/lang_en/
Hiroshi Munemasa, President and Representative Director
Michimasa Masuda, Director, Managing Executive Officer, General manager ofCorporate Planning Division
Telephone:+81-92-284-5072
Scheduled date to file quarterly securities report:
August 10, 2024
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing: None
(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the 3 months ended June 30, 2024
(from April 1, 2024 to June 30, 2024)(1) Consolidated operating results (cumulative)
Net sales(Percentages indicate year-on-year changes.)

Operating profit

3 months ended

Millions of yen%

Millions of yen

June 30, 2024

10,288

(7.1)

(116)

%

-

June 30, 2023
11,081(2.3)
154(54.8)
Note: Comprehensive income for the 3 months ended June 30, 2024:
for the 3 months ended June 30, 2023:
Basic earnings
per share

Profit attributable toowners of parent

Ordinary profit
Millions of yen

(185)

%

Millions of yen

%

-

(255)

-

73
(72.9)¥ (249) million[ - %]¥ 98 million [(54.7) %]63(63.6)

Diluted earnings
per share

3 months ended

Yen

June 30, 2024

(5.34)-

June 30, 2023

1.33

-

Yen

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

June 30, 2024

38,041

8,660

22.7

180.82

March 31, 2024

36,965

8,912

24.1

186.04

Reference: Equity
as of June 30, 2024:
as of March 31, 2024:¥8,644 million¥8,893 million%

Net assets
per shareYen

2. Cash dividends
Annual dividends per share
1st quarter-end
Fiscal year ended
March 31, 2024
Fiscal year ended
March 31, 2025

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Fiscal year ending
March 31, 2025
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated financial forecast for the fiscal year ending March 31, 2025
(from April 1, 2024 to March 31, 2025)
Net sales

Operating profit

Profit attributableto owners ofparentOrdinary profit

Basic earnings
per share

Millions ofYen%Millions ofYen%Millions ofYen%Millions of
Yen

%

Yen

First Half

22,7260.6

613(58.6)

483(64.0)

366(67.4)

10.10

Full Year46,246

(2.0)

1,715

(54.2)

1,440(58.4)

1,093(59.4)

22.88

Note:

Revision from the most recently announced forecast of consolidated business results: None

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in
the change in scope of consolidation): None
Newly included: - companies (Company name)
Excluded:- companies (Company name)(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial
statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations:None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)
(i)

(ii)

Total number of issued shares at the end of the period (including treasury shares)
As of June 30,2024

48,919,396 shares

As of March 31,2024

48,919,396 shares

Number of treasury shares at the end of the period
As of June 30,2024

1,115,281 shares

As of March 31,2024

1,115,213 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the
fiscal year)
3 months ended June 30, 2024

47,804,149 shares

3 months ended June 30, 2023

47,804,413 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
The forward-looking statements, including results forecasts, included in this material are based on the information that
the Company has obtained and certain assumptions that the Company considers reasonable. Actual results may differ
significantly for a range of factors. The assumptions for the results forecasts and cautions in the use of the forecasts
are described in 1. Qualitative information for the 3 months ended June 30, 2024, (3) Information on the outlook,including the forecasts of consolidated business results on page 5 of the Attachment.

Index of the attachment
1. Qualitative information for the 3 months ended June 30, 2024 ...........................

2(1) Information of consolidated business results ..............................................................................

2(2) Information of consolidated financial position .............................................................................

4(3) Information on the outlook, Including the Forecasts of Consolidated Business Results ......

5

2. Quarterly consolidated financial statements and the primary notes for the
3 months ended June 30, 2024 ..................................................................................................

6(1) Quarterly consolidated balance sheets........................................................................................

6(2) Quarterly consolidated statements of income and comprehensive Income ...........................

8

Quarterly consolidated statements of income.............................................................................

8

Quarterly consolidated statements of comprehensive income.................................................

9(3) Notes regarding the quarterly consolidated financial statements ............................................

10

Notes to segment information, etc................................................................................................

10

Notes to remarkable changes in the amount of shareholders’ equity .....................................

11

Notes on matters related to going concern assumption .....................................................................

11

Notes to cash flow on quarterly consolidated financial statements .........................................

11

3. Others ..................................................................................................................................................

12

Consolidated net sales by division................................................................................................

12

2

1. Qualitative information for the 3 months ended June 30, 2024
(1) Information of consolidated business results
During the first quarter under review (April 1 to June 30, 2024), its corporate philosophy,“Clean and comfortable environment for the next generation," the Group facilitated theresolution of social issues through its businesses and continued to work to help establish asustainable society in the residential environment, resource circulation and energy domains.
As for the sales of the ERD division, due to the big drop in the electricity market price, wechanged the position to retail electricity, which is more expensive than wholesale electricity,
but it did not reach the level of the previous quarter. In addition, the regular maintenance andrepair of the Tomakomai power plant was carried out from March to April 2023 in the firstquarter of previous period, but from April to May 2024 in the current period. For this reason,
the number of working and operation days decreased from the previous quarter and net sales(down 14.1% year-on-year). As a result, the group's consolidated net sales amounted to¥10,288 million (down 7.1% year-on-year).
The Group's consolidated profit included operating loss of ¥116 million (operating profit of¥154 million in the same period of the previous fiscal year), ordinary loss of ¥185 million(ordinary profit of ¥73 million in the same period of the previous fiscal year) and loss
attributable to owners of parent of ¥255 million (profit attributable to owners of parent of ¥63
million in the same period of the previous fiscal year) due in part to decreased revenue by big
drop in the electricity market price, and maintenance and repair expenses in conjunction with
the Tomakomai power plant in April and May 2024.
The consolidated results of the individual segment for the first quarter under review were as
follows:<Residential Environment Area>
a. HS (Home Sanitation) Division
The HS Division continued to strengthen its sales policy with a focus on the development of
new customers as in the previous year while also accelerating initiatives with an eye toward
the enhancement of its customer foundation. As a result, net sales came to ¥3,182 million (up5.1% year-on-year), “Underfloor / attic ventilation system" increased 1.6% year-on-year and“Foundation repair/ home reinforcement system” increased 0.2% year-on-year, althoughdecrease of 1.9% in “Termite control construction” due to an increase in the number ofcontracts with new customers.
Operating profit increased 18.3% year-on-year to ¥526 million because of reducing fixed
costs such as sales and general administrative expenses in addition to the increase in sales
from the same period of the previous year.

3b. ES (Establishment Sanitation) Division
The ES Division has been strengthening its relationships with owners of buildings andcondominiums and affiliates such as property management companies. While net sales for“Anti-rust equipment installation (product name: Daelman Shock)” increased 5.9% year-onyear, “Waterproofing and renovation of buildings” increased 6.1% year-on-year, and net sales
for “Water supply and drainage repairs” rose 1.5% year-on-year. As a result, net sales for thesegment totaled ¥636 million (up 2.9% year-on-year).
Operating loss stood at ¥13 million (operating loss of ¥10 million in the same period of theprevious year) because of reducing fixed costs such as sales and general administrative
expenses in addition to the increase in revenue from the same period last year.
c. SE (Solar Engineering) Division
The SE Division focused on the sale of photovoltaic power generation systems developed
specifically for detached houses. As a result, net sales in this segment came to ¥294 million(up 0.5% year-on-year).
Operating loss totaled ¥18 million (operating loss of ¥33 million in the same period of theprevious fiscal year), reflecting efforts to improve profitability.
<Energy Area>d. PV (Photovoltaic) Division
The PV Division focused mainly on the sale and construction of self-consumption typephotovoltaic power generation systems for corporate use, the provision of the PPA services tolocal governments and the sale of photovoltaic power generation systems with land, as well
as replacement of devices and maintenance for existing photovoltaic power generation
systems. In the first quarter of this fiscal year, net sales came to ¥1,760 million (down 14.7%
year-on-year) due to delays in the connect with each electric power companies, in addition,
longer duration from order receiving to construction due to increased size and added value,etc.
Operating loss came to ¥76 million (operating loss of ¥41 million in the same period of theprevious fiscal year) due to a decrease in revenue from the same period last year, although
the gross margin has improved because a decrease in material costs.
e. PPS (Power Producer and Supplier) Division
The PPS Division has been reducing its business since last year, considering that maintaining
profit is difficult due to a rise in the cost of electricity procurement. As a result, net sales in thissegment decreased to ¥554 million (down 5.0% year-on-year).
Operating profit stood at ¥39 million (up 19.9% year-on-year), reflecting improved profitability

4although decrease revenue.
<Resource Circulation Area>
f. ERD (Environmental Resources Development) Division
In the ERD Division, “Plastic fuel” sales increased 6.3% year-on-year, sales for “Waste liquid
treatment” increased 9.5% year-on-year, and “Landfill” sales increased 16.5% year-on-year.
On the other hand, However, due to the big drop in the electricity market price at TomakomaiPower plant, we changed the position to retail electricity, which is more expensive thanwholesale electricity, but it did not reach level of the previous quarter. In addition, the regular
maintenance and repair of the Tomakomai power plant was carried out from March to April
2023 in the first quarter of previous period, but from April to May 2024 in the current period.
For this reason, the number of working and operation days decreased by 69.1% year-onyear. As a result, net sales in this segment increased to ¥3,861 million (down 14.1% year-onyear).
Operating profit for the segment amounted to ¥149 million (down 69.8% year-on-year) due tothe recording of repair expenses of legally required inspection of the Tomakomai power plant.
(2) Information of consolidated financial position
Total assets at the end of the consolidated accounting period in the first quarter amounted to¥38,041 million, increased ¥1,076 million from the FY2023(end of the previous consolidated
fiscal year). The total liabilities amounted to ¥29,381 million, increased ¥1,327 million fromFY2023. Net assets totaled ¥8,660 million, decreased ¥251 million from FY2023. As a result,the capital adequacy ratio stood 22.7% (24.1% at the end of the FY2023).
(Assets)
Current assets at the end of the first quarter under review amounted to ¥16,137 million,
decrease of ¥74 million from FY2023. This was caused chiefly by a rise in accounts receivable
increased the amount of “other current assets” by 1,031 million, but the amount of accounts
receivable decreased by ¥1,231 million.
Fixed assets were ¥21,904 million, increased ¥1,150 million from FY2023. The major factors
include increases of ¥1,139 million in “machinery, equipment and vehicles (net)”.
(Liabilities)
Current liabilities at the end of the first quarter under review amounted to ¥18,399 million,
increase of ¥389 million from FY2023. The primary factors for the increase of ¥1,030 million in“accounts payable”, which more than offset a decrease of ¥231 million in “notes and accounts
payable – trade” and decrease ¥545 million in “income taxes payable”.

5

Non-current liabilities totaled ¥10,981 million at the end of the period, increased ¥938 million
from the end of the FY2023. The key factor was the increase in “long-term outstanding
payments”, resulting in an increase of ¥879 million in “other fixed liabilities”.
(Net assets)
Net assets totaled ¥8,660 million, down ¥251 million from the end of the FY2023. The main
reason is that it recorded a quarterly net loss of ¥255 million attributable to owners of parent.
(3) Information on the outlook, including the forecasts of consolidated business results
Consolidated results forecasts for the fiscal year ending March 31, 2025, there is no change inthe consolidated results forecasts announced on May 15, 2024.

6

2. Quarterly consolidated financial statements and the primary notes for the
3 months ended June 30, 2024
(1) Quarterly consolidated balance sheets(In Millions of Yen)

As of

As of

March 31, 2024

June 30, 2024

Cash and deposits

6,397

6,456

Notes and accounts receivable - trade

5,371

4,139

AssetsCurrent assets

Electronically recorded monetary claims

65

18

Merchandise and finished goods

185

151

Costs on construction contracts in progress

420

501

Raw materials and supplies

2,575

2,621

Other

1,301

2,332

Allowance for doubtful accounts

(105)

(84)

Total current assets

16,211

16,137

2,145

2,096

4,718

5,857

Land

8,248

8,726

Other, net

2,120

1,788

Total property, plant and equipment

17,232

18,468

484

443

3,036

2,992

20,753

21,90436,96538,041

Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net

Intangible assets
Investments and other assets
Total non-current assets
Total assets

7(In Millions of Yen)

As of

As of

March 31, 2024

June 30, 2024

1,968

1,736

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations

486

573

Short-term loans payable

4,015

4,291

Current portion of long-term loans payable

1,364

1,404

300

300

Current portion of bonds payable
Accounts payable

4,503

5,533

Income taxes payable

655

110

Provision for bonuses

283

429

Allowance for resource-recycling expenses

13

13

Other

4,418

4,004

Total current liabilities

18,01018,399Non-current liabilities
Bonds payable
Long-term borrowings

700

650

4,107

4,174

Allowance for retirement benefits for directors

4

4

Allowance for disposal site closing expenses

577

591

Retirement benefit liability

2,217

2,245

Other

2,436

3,315

Total non-current liabilities

10,042

10,981

28,05329,381

Total liabilities
Net assets
Shareholders’ equity

14,041

14,041

Capital stock(3,968)(4,223)Retained earnings(1,481)(1,481)

Treasury shares

8,591

8,336

Valuation difference on available for sale securities

137

94

Foreign currency translation adjustment

163

212

Remeasurements of defined benefit plans

0

0

302

308

18

16

Total shareholders’ equity
Accumulated other comprehensive income

Total other comprehensive income
Non-controlling Interests
Total net assets

8,912

8,660

Total liabilities and net assets

36,96538,041

8(2) Quarterly consolidated statements of income and comprehensive income(Quarterly consolidated statements of income)(In Millions of Yen)

3 months
From April 1 to June 30
FY2023

FY2024

Net sales

11,081

10,288

Cost of sales

7,323

6,762

Gross profit

3,757

3,526

Selling, general and administrative expenses

3,603

3,642

154

(116)

Interest income

42

Dividends income

22

Rental income from land and buildings

15

10Profit on sale of non-current assets

0

13

Other

15

15

Total non-operating profit

38

44

Interest expenses

64

62

Loss on retirement of non-current asset

42

7Foreign exchange gain

6

37

Other

6

6

Operating profit (loss)
Non-operating profit

Non-operating expenses

119

113

Ordinary profit (loss)

Total non-operating expenses

73

(185)

Profit (loss) before income taxes

73

(185)

Income taxes-current

42

49

Income taxes-deferred

(32)

20

Total income taxes

970

Profit (loss)

63

(255)

Profit (loss) attributable to non-controlling interests

(0)

(0)

Profit (loss) attributable to owners of parent

63

(255)

9

(Quarterly consolidated statements of comprehensive Income)(In Millions of Yen)

3 months
From April 1 to June 30
FY2023
Profit (loss)

FY202463(255)

Valuation difference on available-for-sale securities

8

(42)

Foreign currency translation adjustment

2049

Retirement benefit adjustment

6(0)

Total other comprehensive income

35

5

98

(249)

Comprehensive income attributable to owners of parent

98

(249)

Comprehensive income attributable to non-controlling interests

(0)

(0)

Other comprehensive income

Comprehensive net income
Comprehensive net income attributable to10(3) Notes regarding the quarterly consolidated financial statements(Notes to segment information, etc.)
Ⅰ.3 months ended June 30,2023 (From April 1, 2023 to June 30, 2023)
1. Information on net sales and operating profit (loss)
Segments
HS
Net sales:
Sales tocustomers
Internal sales
among segments
and transfer
accounts

ES

SE

PV

PPS

ERD

Total

Elimination
or Group(Note 1)

Consolidated(Note 2)

3,027

618

292

2,064

583

4,495

11,081－

11,081

－

－

－

－

－

－

－

－

－

－
Total
3,027
618
292
2,064
583
4,495
11,081
11,081
Operatingprofit (loss)
445
(10)
(33)
(41)
32
497
890
(735)
154
(Note) 1. Negative ¥735 million for adjustments of operating profit (loss) represents corporate expenses notallocated to reportable segments. Corporate expenses are mainly general and administrative expenses
note attributable to reportable segments.
2. Operating profit is adjusted to operating loss of quarterly consolidated statements of income.

2. Information on impairment losses or goodwill of fixed assets for each reporting segment: NoneⅡ. 3 months ended June 30,2024 (From April 1, 2024 to June 30, 2024)
1. Information on net sales and operating profit (loss)
Segments
HS
Net sales:
Sales tocustomers
Internal sales
among segments
and transfer
accounts

ES

SE

PV

PPS

ERD

Total

Elimination
or Group(Note 1)

Consolidated(Note 2)

3,182

636

294

1,760

554

3,861

10,288－

10,288

－

－

－

－

－

－

－

－

－

－
Total
3,182
636
294
1,760
554
3,861
10,288
10,288Operatingprofit(loss)
526
13
(18)
(76)
39
149
634
(750)
(116)
(Note) 1. Negative ¥750 million for adjustments of operating profit (loss) represents corporate expenses notallocated to reportable segments. Corporate expenses are mainly general and administrative expenses
note attributable to reportable segments.
2. Operating profit is adjusted to operating loss of quarterly consolidated statements of income.

2. Information on impairment losses or goodwill of fixed assets for each reporting segment: None11(Notes to remarkable changes in the amount of shareholders’ equity): None(Notes on matters related to going concern assumption): None(Notes to cash flow on quarterly consolidated financial statements): Did not write list about FY2024 1Q, but the depreciated value changed ¥391 million (FY2023
1Q, from April 1 to June 30, 2023) to ¥395 million (FY2024 1Q, from April 1 to June 30, 2024).

12

3. Others(1) Consolidated net sales by division（In Million of Yen）
From April 1 to June 30
Comparison
Unit
FY2023

FY2024Item
QTY

AmountQTY

AmountQTY

AmountTermite control construction*1,000
tsubo

190

1,208

197

1,184

7

-23

Under-floor/attic ventilation system

－

－

712

－

723

－

11

House

918

405

882

406

-36

0

－

－

701

－

867

－

166

－

－

3,027

－

3,182

－

155

Anti-rust equipment installation

Piece

180

218

218

231

38

12

Water supply and drainage repair

－

－

238

－

242

－

3

Waterproofing and renovation ofbuildings

－

－

67

－

71

－

4

Others

－

－

93

－

90

－

-3

－

－

618

－

636

－

17

－

－

292

－

294

－

1

－

－

292

－

294

－

1

Sales and installation of PV system

－

－

2,034

－

1,723

－

-310

Wholesale of PV system

－

－

7

－

2

－

-4

Others

－

－

22

－

34

－

11

Phtovoltaic Division Total

－

－

2,064

－

1,760

－

-303

Sales of Electricity

－

－

583

－

554

－

-29

－

－

583

－

554

－

-29

Plastic fuelｔ

68,522

2,376

74,691

2,527

6,168

150

Power Plant

－

－

1,227

－

379

－

-847

Waste liquid treatmentｔ23,310481

23,929

527

618

45

Landfill

－

－

227

－

264

－

37

Others

－

－

183

－

162

－

-20

Environmental Resources
Development Division Total

－

－

4,495

－

3,861

－

-634

Others

－

－

－

－

－

－

－

Adjustment of intersegment sales

－

－

－

－

－

－

－

Total Net Sales－－

11,081－

10,288－-792

Foundation Repair/
Home Reinforcement System
OthersHome Sanitation Division Total

Establishment Sanitation
Division Total
Sales and installation of PV system
Solar Engineering Division Total

Power Producer and Supplier
Division Total(Note) 1. Descriptions are omitted for items that are handled in such a wide range that it is difficult to grasp theirquantity.
2. 1,000 tsubo is approximately 3,305.785 ㎡.