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.

May 15, 2023

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2023
(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
Hiroshi Soga, Executive officer, Deputy General manager of Corporate Division,
General manager of Corporate Planning Division, Management & Planning Division
Telephone:+81-92-284-5072
Scheduled date of annual general meeting of shareholders : June 29, 2023
Scheduled date to commence dividend payments:Scheduled date to file annual securities report: June 29, 2023
Preparation of supplementary material on financial results : Yes
Holding of financial results briefing: Yes (for Institutional investor)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 toMarch 31, 2023)(1) Consolidated operating results (cumulative)
Net sales(Percentages indicate year-on-year changes.)

Operating Income

Fiscal year ended

Millions of yen%

Millions of yen

March 31,2023

46,277

(9.1)

1,785

-

March 31,2022

50,936

3.1(2,618)-%

Note: Comprehensive income For the fiscal year ended March 31,2023:
For the fiscal year ended March 31,2022:
Basic earnings
per share

Profit attributable toowners of parent

Ordinary Income
Millions of yen

%

1,552

-

(2,900)-Millions of yen¥(1,341) million¥(3,360) million

%

1,332

-

(3,449)

-

[-%]
[-%]

Diluted earnings
per share

Return on equity

Ratio of ordinary
profit to total
assetsRatio of operating
profit to net sales

Yen

%

%

%

Fiscal year ended

Yen

March 31,2023

27.87

-

24.8

4.5

3.9

March 31,2022(72.16)-(54.0)

(8.5)

(5.1)

Reference: Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31,2023: ¥- million
For the fiscal year ended March 31,2022: ¥- million

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

March 31,2023

33,586

6,068

18.0

126.51March 31,2022

34,953

4,732

13.5

98.52

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodReference: Equity
As of March 31,2023:
As of March 31,2022:%

Yen¥6,047 million¥4,709 million(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31,2023

5,034(1,056)(3,307)

3,916

March 31,2022(3,067)(2,937)

4,447

3,243

2. Cash dividends
Annual dividends per share

Fiscal year ended
March 31,2022
Fiscal year ended
March 31,2023
Fiscal year ending
March 31,2024(Forecast)

Total cash
dividends(Total)Payout ratio(Consolidated)

Ratio ofdividends to
net assets(Consolidated)

%

%

First
quarterend

Secondquarterend

Third
quarterend

Fiscalyear-end

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

-

-

-

0.00

0.00

0.00

0.00

0.00

Total

Millions of yen-

3. Consolidated financial forecasts for the fiscal year ended March 31, 2023(from April 1, 2023 toMarch 31, 2024)
Net sales

Operating Income

Ordinary Income

Profit attributableto owners ofparentBasic earnings
per share

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

%

Yen

First Half

23,873

5.4

1,452

94.6

1,336

118.5

1,035

133.8

21.65

Full Year

47,965

3.6

3,231

81.0

3,014

94.2

2,495

87.3

52.20

* 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) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
Note :For details, please see 3.Consolidated Financial Statements and Main Notes to theStatements (5) Notes to the Consolidated Financial Statements (Changes in Accounting
Policies) on page 21 of the attachment.
(3) Number of issued shares (common shares)
(i)

(ii)

Total number of issued shares at the end of the period (including treasury shares)
As of March 31,2023

48,919,396 shares

As of March 31,2022

48,919,396 shares

Number of treasury shares at the end of the period
As of March 31,2023

1,114,983 shares

As of March 31,2022

1,114,838 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31,2023

47,804,439 sharesFiscal year ended March 31,2022

47,804,606 shares[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31,2023 (from April 1,2022
to March 31,2023)(1) Non-consolidated operating results
Net sales(Percentages indicate year-on-year changes.)
Operating profit

Ordinary profit

ProfitFiscal year ended

Millions of yen%

March 31,2023

40,582(11.1)

453

-

581

-

453

-

March 31,2022

45,627(1.9)(3,338)-(3,048)-(3,374)-

Millions of yen

Basic earnings
per share%

Millions of yen%

Millions of yen%

Diluted earnings
per share

Fiscal year ended

Yen

March 31,2023

9.49

-

March 31,2022(70.58)-Yen(2) Non-consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

March 31,2023

26,556

1,472

5.5

30.79

March 31,2022

27,835

989

3.6

20.71

Reference: Equity
As of March 31,2023:
As of March 31,2022:¥1,472 million¥989 million%

Net assets per share
Yen* Financial results reports are exempt from audit 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. Information of BusinessResults & Financial Position for the fiscal year ended March 31, 2023, (4) Information on the Future
Outlook, Including the forecasts of Consolidated Business Results on page 7 of the Attachment

1. Index of the attachment
1. Information on Business Results & Financial Position for the fiscal year
ended March 31, 2023 ...............................................................................................
2(1) Information on Consolidated Business Results ............................................................................
2(2) Information on Consolidated Financial Position ............................................................................
5(3) Information on Consolidated Cash Flows ......................................................................................
6(4) Information on the Future Outlook, Including the Forecasts of Consolidated BusinessResults ................................................................................................................................................
7

2. Basic Position regarding the Choice of Accounting Standards ...................................
10
3. Consolidated Financial Statements and Main Notes to the Statements ...................
11(1) Consolidated Balance Sheets .........................................................................................................
11(2) Consolidated Statements of Income and Comprehensive Income ............................................
13
Consolidated Statements of Income .............................................................................................
13
Consolidated Statements of Comprehensive Income ................................................................
14(3) Consolidated Statements of Changes in Net Assets .............................................................
15(4) Consolidated Statements of Cash Flows .......................................................................................
19(5) Notes to the Consolidated Financial Statements ..........................................................................
21
Notes to the Assumption of a Going Concern .............................................................................
21
Changes in accounting policy ....................................................................................................21
Additional information ................................................................................................................21
Segment Information ...................................................................................................................22
Per-share information ..................................................................................................................26
Significant subsequent events ...................................................................................................26

4. Supplemental Information .............................................................................................................
27
Consolidated Net Sales by Division.......................................................................................................27

2

1. Information of Business Results & Financial Position for the fiscal year
ended March 31, 2023
(1) Information on Consolidated Business Results
During the fiscal year under review, the Japanese economy continued to face
uncertainty about the future due to a steep rise in the prices of natural resources andenergy caused by the prolonged war between Russia and Ukraine, an increase in
prices triggered by the depreciation of the yen, and other factors despite a moderate
recovery resulting from measures taken to control infectious diseases and the easing ofrestrictions on activities amid the lingering impact of COVID-19.
In this situation, SANIX INCORPORATED and its consolidated subsidiaries(hereinafter the “Group”) continued their respective operations, while ensuring that
COVID-19 preventive measures were taken and working to strengthen and expand thefoundation for each business.
The Group implemented a reorganization on June 1, 2022 to ensure the growth of its
businesses and facilitate growth through the pursuit of synergy between the businesses,
while responding flexibly to the rapidly changing market environment with the goal of
creating a comfortable environment for the next generation as stated in its corporate
philosophy. Consequently, the classification of reportable segments changed in the firstquarter. Details are provided in the section, (3) Notes regarding the Consolidated
Financial Statements (Segment Information, etc.), under 2. Consolidated Financial
Statements and the Primary Notes for the Fiscal Year Ended March 31, 2023.
Accordingly, in the year-on-year comparisons below, the figures for the same periodof the previous year have been restated to reflect the new segment classification in thecomparative analysis. However, the year-on-year comparison of the new Solar
Engineering (SE) Division, operating the business of photovoltaic power generation
systems for detached houses, and the Photovoltaic (PV) Division, operating

thebusiness of photovoltaic power generation systems for corporations, is omitted due tothe practical difficulty of recalculating figures from the same period of the previous year.
Looking at net sales, the Power Producer and Supplier (PPS) Division has stopped
accepting new applications for power supply and demand contracts and shifted part ofits retail contracts for electric power to distributor agreements to eliminate the risk ofprice volatility in electricity procurement. As a result, the Group's consolidated net sales
for the consolidated fiscal year under review came to ¥46,277 million (down 9.1% year
on year).
Although there was a serious impact of increased wholesale electricity market prices
on the cost of purchasing electric power within the PPS Division in the previous fiscal
year, as a result of the reduction of the risk of price volatility in market procurement, theGroup's consolidated profit was recorded with operating income of ¥1,785 million

3(operating loss of ¥2,618 million in the previous year), ordinary income of ¥1,552 million(ordinary loss of ¥2,900 million in the previous year), and profit attributable to owners ofparent of ¥1,332 million (loss attributable to owners of parent of ¥3,449 million in theprevious year).
Consolidated results of individual divisions for this fiscal year were as follows:a. HS (Home Sanitation) Division
Home Sanitation (HS) Division has been working to expand the business through the
opening of a new sales office while continuing to take thorough measures to prevent
COVID-19 infections. However, temporary restrictions were imposed on face-to-facesales activities involving visits to detached houses due to the re-expansion of
COVID-19 cases in July 2022 onward. As a result, net sales in this segment decreasedto ¥11,449 million (down 7.8% year on year).
Operating income for the segment came to ¥1,337 million (down 43.9% year on year)
due to an increase in personnel and other fixed expenses associated with addition of
employees principally for new sales offices in addition to the decrease in sales.
b. ES (Establishment Sanitation) Division
The ES Division has been strengthening its relationships with owners of buildings
and condominiums and affiliates such as property management companies. Net sales
for the installation of the Company's main anti-rust product (brand name: Daelman
Shock) decreased 6.8% year on year, and net sales for building water proofing repair
work rose 54.5% year on year. Net sales for building water supply and drainage repairsalso rose 12.6% year on year. As a result, net sales for the segment totaled ¥2,575
million (up 3.5% year on year).
Operating income for the segment came to ¥130 million (down 42.5% year on year)
due to a rise in subcontracting construction costs in addition to an increase in personnel
and other fixed expenses to strengthen the sales base.
c. SE (Solar Engineering) Division(division for sale of photovoltaic power for detached houses)
As a result of the reorganization in June 2022, the SE Division was launched as a
new business division focusing on the sale of photovoltaic power generation systems
developed specifically for detached houses and it has remained steady. As a result, net
sales for the segment totaled ¥1,726 million.
The operating result was an operating loss of ¥47 million, largely due to expenses
incurred for the launch of the new business division, although the Division became
profitable in the second half of the year.

4d. PV(Photovoltaic) Division(division for sale of photovoltaic power for corporations)Through the reorganization in June 2022, the PV Division was re-established as aunit selling photovoltaic power generation systems developed specifically forcorporations. It focused on the construction of self-consumption type photovoltaic
power generation systems and the maintenance of existing photovoltaic power
generation systems. As a result, net sales for the segment totaled ¥8,625 million.
The operating result was operating income of ¥22 million due to a decrease in SG&A
expenses resulting from the reallocation of personnel with the SE Division following thereorganization, despite higher prices of materials and supplies.
e. PPS(Power Producer and Supplier) Division
The PPS Division has been reducing its business since the second half of theprevious fiscal year, considering that maintaining profit is difficult due to a significant
rise in the cost of procurement chiefly caused by a surge in prices in the wholesale
electric power market. Therefore, the Company stopped accepting new applications for
power supply and demand contracts and shifted a part of its retail contracts for electric
power to distributor agreements. As a result, net sales in this segment decreased to¥5,381 million (down 45.3% year on year).
Operating income for the segment was secured mainly through the elimination of therisk of price fluctuations by shifting our power procurement to mainly direct procurement
and the sale of surplus power procured through direct trading in the wholesale power
trading market, where prices have been soaring. As a result, the Division posted
operating income of ¥239 million (operating loss of ¥4,173 million in the previous year).
f. ERD (Environmental Resources Development) Division
In the ERD Division, plastic fuel sales decreased 7.0% year on year, waste water
treatment decreased 0.7% year on year due to a decline in the acceptance volume ofwaste. Meanwhile, landfill sales rose 11.3% year on year due to an increase intreatment unit prices. In addition, power plant sales increased 4.5% year on year due toan increase in the contract price of Tomakomai power plant non-fossil certificates(without non-FIT renewable energy designation) in the non-fossil value trading market.
As a result, net sales in this segment decreased to ¥16,518 million (down 2.9% year onyear).
The Division posted operating income of ¥3,153 million (down 0.2% year on year).

5(2) Information of Consolidated Financial Position
Information on the status of Assets, of Liabilities, and of Net Assets
Total assets as of the end of the fiscal year under review amounted to ¥33,586
million, a decrease of ¥1,367 million from the end of the previous consolidated fiscal
year. Total liabilities stood at ¥27,518 million, a decrease of ¥2,703 million from the endof the previous consolidated fiscal year. Net assets totaled ¥6,068 million, a rise of¥1,335 million from the end of the previous consolidated fiscal year. As a consequence,the shareholders' equity ratio stood at 18.0%.
(The status of Assets)
Current assets decreased ¥867 million compared to the end of the previous year,
coming to ¥13,683 million (down 6.0% year on year). This was caused chiefly by rises
in cash and deposits of ¥589 million, raw materials and supplies of ¥439 million and adecrease in accounts receivable – trade of ¥1,793 million.
Non-current assets decreased ¥499 million compared to the end of the previous year,
coming to ¥19,902 million (down 2.4% year on year).

Major factors include anincrease in construction in progress of ¥226 million, while decreases in buildings andstructures (net of depreciation) of ¥463 million, and lease and guarantee deposits of¥224 million.
(The status of Liabilities)
Current liabilities decreased by ¥5,335 million compared to the end of the previous
year to ¥16,382 million (down 24.6% year on year). The main factors were increases of¥986 million in current portion of long-term loans payable, ¥616 million in accrued
consumption taxes and account payable-other ¥331 million, despite decreases of¥6,689 million in short-term loans payable and ¥945 million in notes and accounts
payable-trade.
Non-current liabilities increased ¥2,632 million compared to the end of the previous
year to ¥11,135 million (up 31.0% year on year).This was mainly attributable todecreases of ¥209 million in provision for disposal site closing expenses, ¥200 million
in bonds payable, and an increase of ¥3,174 million in long-term loans payable.
(The status of Net Assets)
Net assets rose by ¥1,335 million compared to the end of the previous year andamounted to ¥6,068 million (up 28.2% year on year). Key contributors to the increase
included the posting of profit attributable to owners of parent of ¥1,332 million.

67(3) Information of Consolidated Cash Flows
Cash and cash equivalents as of the end of the fiscal year under review increased by¥673 million compared to the end of the previous year, amounting to ¥3,916 million.
The following is a summary of cash flows and major factors for the fiscal year underreview.
(Net Cash Provided by Operating Activities)
Net cash provided by operating activities was ¥5,034 million (expenditure of ¥3,067
million in the previous year). The main factors for this were income before income taxesof ¥1,552 million and depreciation expenses of ¥1,889 million as non-cash
expenditures and a decrease of ¥1,766 million in notes and accounts receivable-trade.
(Net Cash Provided by Investment Activities)
Net cash used in investing activities was ¥1,056 million (expenditure of ¥2,937 million
in the previous year). This is mainly due to purchases of property, plant and equipmentof ¥1,073 million.
(Net Cash Provided by Financing Activities)
Net cash used in financing activities was ¥3,307 million (proceeds of ¥4,447 million in
the previous year). The main factors for this include a net decrease in short-term loans
payable of ¥6,689 million, repayment of long-term loans payable of ¥892 million, andthe repayment of installment payables of ¥639 million, despite proceeds from long-termloans payable of ¥5,053 million.
(Reference: The Cash Flow Indicators)
Fiscal Year
Shareholders’ equity ratio
Shareholders’ equity ratio on a market
price basis
Interest-bearing liabilities ratio to cash
flow
Interest coverage ratio(Note) Shareholder’s equity ratio:

FY2018FY2019FY2020

FY2021

FY2022

13.4%

18.5%

24.5%

13.5%

18.0%

37.5%

42.0%

47.5%

35.5%

40.9%

-

3.04

4.16

-

2.46

-

21.61

13.02

-

16.88

Shareholder’s equity/Total assets

Share ratio on a market price basis: Total market value of stock/Total assets
Interest-bearing liabilities ratio to cash flow: Operating cash flow/Interest payment
Interest coverage ratio:

Operating cash flow/Interest payment

1. The basis of the calculation for all values is consolidated financial data.
2. Market capitalization is calculated by multiplying the closing price of SANIX shares at the end of the
fiscal year by the number of shares outstanding at the end of the fiscal year.

8

3. Operating cash flow refers to Cash Flows from Operating Activities according to the consolidated
statement of cash flows. Interest-bearing liabilities are comprised of all liabilities on the consolidatedbalance sheet on which interest is payable. Interest expenditure refers to interest expenses paid
according to the consolidated statement of cash flows.

(4) Information on the Future Outlook, Including the forecasts of Consolidated
Business Results
Based on our corporate philosophy, “Clean and comfortable environment for the next
generation," the Group will continue its efforts to establish a sustainable society throughnew innovation in the residential environment, resource circulation and energy domains,leveraging the experience it has accumulated in its businesses to date.
(HS Division)
The HS Division will strengthen its business foundations by facilitating thecommunity-oriented development of further enhancing after-sales services for existingcustomers. It will then boost the number of personnel through recruitment and open
new stores to increase the numbers of new contracts and customers.
(ES Division)
The ES Division will seek to cultivate partners such as management companies,
introduce existing partners through close follow-ups, and increase opportunities forbusiness discussions with real estate owners, while in parallel facilitating new store
openings. By doing so, it will continue to expand sales channels for the mainstay
anti-rust equipment installation product (brand name: Daelman Shock).
(SE Division)
The Division will work to expand the use of solar power generation systems andstorage batteries for detached houses which are environmentally friendly, reduce
electricity costs and can be used as power sources during a disaster. In addition, theDivision will increase productivity and efficiency and facilitate the reduction of the costof materials and components such as modules and power conditioners.
(PV Division)
In its business focused on photovoltaic power generation systems for corporations,the focus has shifted from sales of FIT systems to sales of self-consumption systems.
The Division will work to expand its sales channels for self-consumption photovoltaic
power generation systems that can help companies become carbon neutral, reduce
electricity costs, etc., and strengthen our system for replacing equipment and the9after-sales maintenance of customers' photovoltaic power generation systems. In
addition, the Division will increase productivity and efficiency and facilitate the reductionof parts and materials expenses.
(PPS Division)
The combination of soaring prices on the wholesale electricity market (JEPX) andglobal energy prices made it difficult to ensure the profitability of the retail electricity
business, so we liquidated unprofitable contracts and downsized the business.
However, we will continue to provide electricity supply and demand management
services in anticipation of the commercialization of renewable energy introduction
models such as self-consumption and PPA in the sales of photovoltaic power
generation system, and energy management such as VPP.
(ERD Division)
The Division has been improving the quality of plastic fuels and operating its plant
more efficiently. The Division will continue to strive to improve business performance byincreasing acceptance volume while focusing on profitability. Through the facilitationof sales of a centralized waste management system (product name: Sanix System) at
the source of emissions, which supports not only the waste treatment business but also
cumbersome tasks such as contracts, management forms (manifest slips), andperformance reporting to local governments, the Division will enable continuingbusiness transactions. The Division will also aim to grow the water recycling businessby facilitating the manufacturing of renewable energy while taking into consideration arole of the resource recycling business in society.
Furthermore, with the goal of commercializing the solar panel reuse/recycling
business, also due to the expectation for the high volume of used solar panels in the2030's when the solar FIT purchase period expires, the Group will proceed with theverification of solar panel recycling technologies leveraging the knowledge about solar
panels it has accumulated and its strengths of its nationwide industrial waste disposal
network.
Regarding the consolidated financial results forecast for the fiscal year ending March
31, 2024, although the PPS Division will be downsized, we expect an increase in both
net sales and income due to base increases in other existing businesses.
Regarding its performance, the Group is expected to achieve net sales of ¥47,965
million (up 3.6％ year on year), operating income of ¥3,231 million (up 81.0％ year onyear), ordinary income of ¥3,014 million (up 94.2 ％ year on year), and profit
attributable to owners of parent of ¥2,495 million (down 87.3％ year on year).

10(in Millions of Yen)
Consolidated financial forecast

FY2022 (resalts)

FY2023

Net Sales

47,96546,277

Operating Income

3,231

1,785

Ordinary Income

3,014

1,552

Profit attributable to owners of parent

2,495

1,332

The above forecasts have been prepared based on information available as of thedate of the announcement of the financial report. Actual results of operations may differ
from forecasts due to many factors that may arise in the future.
In addition, amid the uncertain business environment which has been affected bysoaring resource and energy prices and rising prices associated with the yen's
depreciation, the Group has formulated the Medium-Term Business Plan (FY2023 to
FY2025) as a period for laying the foundation for the achievement of the sustainablegrowth of its existing businesses.
For details, please refer to the Notice Concerning the Formulation of theMedium-Term Management Plan (FY 2023 to FY2025) released today (May 15, 2023).
Management Objectives in the Medium-Term Business Plan (FY2023 to FY2025)(in Billions of Yen)
Medium-Term Management Plan

(resalts)
FY2022

FY2023

FY2024FY2025Net Sales

46.2

48.0

50.0

53.0

Operating Income

1.7

3.2

3.2

3.0

EBITDA

3.6

4.8

4.9

5.0

ROE

24.8%

35.0%

24.0%

16.0%

ROIC

8.4%

14.0%

12.0%

10.0%

Equity ratio

18.0%

22.0%

27.0%

30.0%

(Note) EBITDA = Operating income + Depreciation

11

2. Basic Position regarding the Choice of Accounting Standards
The Group will use the Japanese standards for the time being. In addition, our policy is to takeproper steps toward the adoption of the International Financial Reporting Standards while giving
due consideration to the circumstances in Japan and other countries.

12

3. Consolidated Financial Statements and Main Notes to the Statements(1) Consolidated Balance Sheets(In Millions of Yen)

As of March 31
FY2021

FY2022

Assets:Current Assets:
Cash and deposits

3,914

4,504

26

53

6,567

4,774

Merchandise and finished goods

81

163

Work in process-construction

201

134

Raw materials and supplies

2,462

2,901

Other

1,453

1,382

Allowance for doubtful accounts

(154)

(229)

14,451

13,683

11,096

11,266

Less: Accumulated depreciation(8,277)(8,911)

Buildings and structures (net of depreciation)

2,818

2,355

Notes receivable
Accounts receivable

Total current assets
Fixed Assets:
Tangible fixed assets:
Buildings and structures, net

14,62914,816(10,394)(10,529)

4,235

4,286

Land

8,314

8,209

Lease assets, net

1,581

1,657

Less: Accumulated depreciation

(780)

(846)

Lease Assets, net

800

810

Construction in progress

41

268

Other, net

888

868

Less: Accumulated depreciation

(717)

(697)

Other, net

170

170

16,382

16,100701

595

Investment securities

103

141

Deferred tax assets

592

698

Machinery, Equipment and vehicles, net
Less: Accumulated depreciation
Machinery, Equipment and vehicles (net of depreciation)

Total Tangible fixed assets
Intangible fixed assets
Investments and other assets:

Lease and guarantee deposits
Other

794

570

2,383

2,219

Allowance for doubtful accounts

(555)

(424)

Total investments and other assets

3,318

3,206

Total fixed assets

20,401

19,902

34,95333,586

Total Assets

13(In Millions of Yen)

As of March 31
FY2021

FY2022

Liabilities:
Current Liabilities:
Notes and accounts payable-trade

3,408

2,463

389

782

10,151

3,462

Current portion of long-term loans payable

386

1,372

Current portion of bonds payable

200

200

Accounts payable

2,964

3,296

Accrued expenses

1,107

1,112

Lease obligations

510

530

Accrued income taxes

307

350

Accrued consumption taxes

137

753

Contract liabilities

1,705

1,587

Provision for bonus

273

263

Electronically recorded obligations - operating
Short-term loans payable

Allowance for resource-recycling expenses
Other
Total current liabilities

8

11

166

194

21,71816,382

Non-Current Liabilities:
700

500

Long-term loans payable

2,297

5,472

Lease obligations

1,022

841

Long-term lease deposited

45

45

Provision for directors’ retirement benefits

44

Bonds payable

732

523

Liability related to retirement benefits

1,963

2,104

Other

1,737

1,643

Total non-current liabilities

8,503

11,13530,221

27,51814,041

14,0411-Retained earnings(7,995)(6,666)

Treasury stock(1,481)(1,481)

Total shareholders’ equity

4,566

5,893

Provision for disposal site closing expenses

Total Liabilities

Net Assets:
Shareholders’ Equity:
Capital stock
Capital surplus

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities

43

72

Foreign currency translation adjustment

100

106

Adjustment for retirement benefits (cumulative)

(0)

(24)

Total Accumulated other comprehensive income

142

154

22

20

Non-controlling Interests
Total Net Assets

4,732

6,068

Total Liabilities and Assets

34,95333,586

14(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(In Millions of Yen)

From April 1 to March 31
FY202150,936FY2022
46,277

Cost of Sales

38,84230,068Gross Profit

12,093

16,208

Sales commission

696

650

Advertising expenses

353

341

Net sales

Selling, General and Administrative expenses

(14)

77

Salaries and bonuses

7,406

7,224

Provision for bonuses

171

183

Retirement benefit expenses

195

194

Legal welfare expenses

1,053

1,077

Rent expenses

1,030

1,060

Depreciation

345

368

Provision of allowance for doubtful accounts

Other

3,474

3,243

Total selling, general and administrative expenses

14,711

14,423(2,618)1,785Interest income

1213Dividends income

23Land and house rent revenue

63

63

Subsidy income

7

27

Other

51

76

Total non-operating income

137

185

Interest expenses

251

299

Commission expenses

25

21

Loss on retirement of non-current asset

75

66

Other

68

30

Total non-operating expenses

420

418

(2,900)1,552

Impairment losses

226-

Total extraordinary losses

226-(3,127)

1,552

246

341

Income Taxes-Deferred

78

(119)

Total Income Taxes

325

222

(3,452)

1,329

(3)

(2)

(3,449)1,332

Operating Income (Loss)
Non-Operating Income:Non-Operating Expenses:

Ordinary Income (Loss)
Extraordinary losses

Income (Loss) Before Income Taxes and Minority Interests
Income Taxes-Current

Net Income
Net Income (Loss) Belonging to the Non-Controlling Shareholders
Net income (Loss) Belonging to the Shareholders of the Parent
Company

15(Consolidated Statements of Comprehensive Income)(In Millions of Yen)

From April 1 to March 31
FY2021(3,452)

FY2022
1,329

Valuation difference on available-for-sale securities

(11)

29

Foreign currency translation adjustment

99

6Retirement benefit adjustment

5

(24)

Total other comprehensive income

92

11(3,360)1,341(3,357)

1,343

(3)

(2)

Income Before Minority Interests
Other Comprehensive Income:Comprehensive Net Income
Comprehensive Income Attributable toComprehensive income (loss) belonging to the shareholders of
the parent company
Comprehensive income (loss) belonging to non-controllingshareholders

16(3) Consolidated Statements of Changes in Net Assets
The previous consolidated fiscal year (April 1, 2021 to March 31, 2022)(In Millions of Yen)

Shareholders’ equity
Capital stock
Balance at the beginning ofcurrent period

14,041

CapitalsurplusRetainedearnings
1

Cumulative effects ofchanges in accounting
policies
Restated balance(4,541)

Treasurystock(1,481)(4)
14,041

1(4,545)

Total
shareholders’equity8,020(4)(1,481)

8,016

Changes of items during
the period
Net loss belonging to theshareholders of theparent company
Purchase of treasury
stock
Change in ownershipinterest of parent due totransactions with
non-controlling interests
Transfer from retained
earnings to capital surplus
Net changes of items
other than shareholders’equity(3,449)(3,449)(0)(0)

Total changes of items
during the period--(3,449)(0)(3,449)Balance at the end ofcurrent period

14,041

1(7.995)(1,481)

4,566

17

(In Millions of Yen)

Accumulated other comprehensive income
Valuationdifference on
available forsale securities

Balance at the beginning ofcurrent period

55

Foreigncurrencytranslation
adjustment

Retirement
benefits
adjustment

1

(5)

Total
accumulated
othercomprehensive
incomeMinority
interests

Total net
assets

50

25

8,097

Cumulative effects ofchanges in accounting
policies
Restated balance

(4)
55

1

(5)

50

25

8,092

Changes of items during
the period
Net loss belonging to theshareholders of theparent company
Purchase of treasury
stock
Change in ownershipinterest of parent due totransactions with
non-controlling interests(3,449)(0)Transfer from retained
earnings to capital surplus
Net changes of items
other than shareholders’equity

(11)

99

5

92

(3)

89

Total changes of items
during the period

(11)

99

5

92

(3)

(3,360)

Balance at the end ofcurrent period

43

100

(0)

142

22

4,732

18

The consolidated fiscal year (April 1, 2022 to March 31, 2023)(In Millions of Yen)

Shareholders’ equity
CapitalsurplusCapital stock
Balance at the beginningof current period

14,041Retainedearnings
1(7,995)

Treasurystock(1,481)

Total
shareholders’equity4,566

Changes of items during
the period
Net loss belonging to
the shareholders of theparent company
Purchase of treasury
stock
Change in ownershipinterest of parent due
to transactions with
non-controllinginterests
Transfer from retained
earnings to capitalsurplus
Net changes of items
other thanshareholders’ equity

1,332

1,332
(0)

(5)

(0)

(5)

3

(3)

-

Total changes of items
during the period

-

(1)

1,329

(0)

1,327

Balance at the end ofcurrent period

14,041-(6,666)(1,481)

5,893

19

(In Millions of Yen)

Accumulated other comprehensive income
Valuationdifference on
available forsale securities

Balance at the beginningof current period

43

Foreigncurrencytranslation
adjustment

Retirement
benefits
adjustment

100

(0)

Total
accumulated
othercomprehensive
incomeMinority
interests

Total net
assets

142

22

4,732

Changes of items during
the period
Net loss belonging to
the shareholders of theparent company
Purchase of treasury
stock
Change in ownershipinterest of parent due
to transactions with
non-controllinginterests
Transfer from retained
earnings to capitalsurplus
Net changes of items
other thanshareholders’ equity

1332
(0)

(5)

-

29

6

(24)

11

(2)

8

Total changes of items
during the period

29

6

(24)

11

(2)

1,335

Balance at the end ofcurrent period

72

106

(24)

154

20

6,068

20

(4) Consolidated Statements of Cash Flows(In Millions of Yen)

April 1 to March 31
FY2021

FY2022Net Cash Provided by (used in) Operating Activities :Income before income taxes and minority interests(3,127)

1,552

Depreciation and amortization

1,509

1,889

Impairment losses

226-

Increase (Decrease) in provision for retirement benefits for directors(5)-

Increase (Decrease) in provision for bonuses

17

(10)

Increase (Decrease) in allowance for disposal site closing expenses

57

(209)

Increase (Decrease) in liabilities in retirement

109

117

Increase (Decrease) in allowance for doubtful accounts

(44)

(57)

Interest and dividends income

(14)

(17)

Interest expenses

251

299

(1,332)

1,766

301

(452)

Decrease (Increase) in notes and accounts receivable-trade
Decrease (Increase) in inventories
Decrease (Increase) in other current assets

(88)

150

Increase (Decrease) in notes and accounts payable-trade

(390)

(558)

Increase (Decrease) in accounts payable – other

138

209

Increase (Decrease) in consumption tax refund receivable

(465)

616

71

(96)

Increase (Decrease) in other current liabilities
Other
Subtotal

30

444(2,756)

5,645

14

15

Interest expenses paid

(243)

(298)

Income taxes paid

(172)

(374)

Income taxes refund

90

46(3,067)

5,034

(851)

(998)

Interest and dividends income received

Net cash provided by operating activities

Net Cash Provided by (used in) Investment Activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of tangible fixed assets
Proceeds from sales of tangible fixed assets
Purchase of intangible assets
Other
Net cash provided by investing activities

747

1,089

(2,494)(1,073)

20

7

(140)

(62)

(217)

(18)

(2,937)(1,056)

21

April 1 to March 31
FY2021
FY2022Net Cash Provided by (used in) Financing Activities:
3,521(6,689)Proceeds from long-term loans payable

297

5,053

Repayments of long-term loans payable

(261)

(892)

Proceeds from issuance of bonds

1,000

-

Redemption of bonds

(600)

(200)

Increase (Decrease) in short-term loans payable

Proceeds from sale and leaseback transactions

185

66

Repayments of finance lease liabilities

(476)

(504)

Proceeds from sale and installment back

1,227

524

Repayments of installment payables

(420)

(639)

(25)

(26)

Net cash provided by financing activities
Effect of Exchange Rate Changes on Cash and Cash
Equivalents

4,447(3,307)39

3

Net Increase (Decrease) in Cash and Cash Equivalents(1,517)

673

Balance of Cash and Equivalents at beginning of period

4,760

3,243

Balance of Cash and Equivalents at end of period

3,243

3,916

Other

22

(5) Notes to the Consolidated Financial Statements(Notes to Assumption of Going Concern): None(Changes in accounting policies)(Application of the Accounting Standard for Fair Value Measurement, etc.)
The Company has decided to adopt the Implementation Guidance on AccountingStandard for Fair Value Measurement (ASBJ Guidance No. 31, June 17, 2021;
hereinafter the "Fair Value Measurement Implementation Guidance") from the
beginning of the fiscal year under review and apply the new accounting policy
stipulated in the Fair Value Measurement Implementation Guidance according to theprovisional treatment stipulated in Paragraph 27-2 of the Fair Value Measurement
Implementation Guidance. The adoption of the implementation guidance has no impact
on the consolidated financial statements.
(Additional information)(Application of the Practical Solution on the Accounting and Disclosure Under theGroup Tax Sharing System）
The Company and some of its consolidated subsidiaries in Japan made a shift fromthe consolidated taxation system to the group tax sharing system in the fiscal year
under review. Consequently, with respect to accounting processing and disclosures forincome tax, local corporate income tax and tax effect accounting, the Company started
to apply the Practical Solution on the Accounting and Disclosure Under the Group Tax
Sharing System (Accounting Standards Board of Japan (ASBJ) Practical Issues Task
Force No. 42 issued August 12, 2021, hereinafter "PITF No. 42"). In addition, based on
Paragraph 32-(1) of PITF No. 42, the Company considers that there will be no impact ofchanges in its accounting policy resulting from the application of PITF No. 42.

23(Segment information)
Ⅰ. Overview of reportable segments
The Group’s reportable segments are components of the Group about which
separate financial information is available. These segments are subject to periodic
examinations to enable the company’s Board of Directors to decide how to allocate
resources and assess performance.
HS Division
The segment performs construction related to environmental sanitation for generalhouseholds, specifically termite extermination, basic repair work and the constructionof underfloor and ceiling ventilation systems.
ES Division
The segment performs construction related to environmental sanitation forcompanies, specifically the maintenance and construction of water supply anddrainage facilities of buildings and condominiums.
SE Division
The Division sells and installs photovoltaic power generation systems and storage
batteries for detached houses.
PV Division
The Division sells and installs photovoltaic power generation systems and othersystems for corporations. The Company also wholesales photovoltaic power
generation systems and equipment.
PPS Division
The Division is engaged in the retail sale of electric power to households andcorporations.
ERD Division
The Company processes waste plastics collected as industrial waste and sells
plastic fuels to SANIX ENERGY INCORPORATED, a consolidated subsidiary. The
subsidiary operates the power generation business by using plastic fuels purchasedfrom the Company and its consolidated subsidiary Hokkaido SANIX Environment
Incorporated,

andincinerated

ashes

generated

by

SANIX

ENERGYINCORPORATED are disposed of by C&R Landfill Incorporated, a consolidated

24

subsidiary. SE Wings Inc. is purchasing electricity from SANIX ENERGYINCORPORATED and sell to consumers.
In addition, it accepts and processes organic waste water from the foodservice
industry and food factories.
Starting the current fiscal year, the Group has undergone a reorganization with theaim of facilitating growth by pursuing synergy between businesses. As a result, thereportable segments are as follows: the HS Division, ES Division, SE Division, PV
Division, PPS Division, and ERD Division.
The segment information for the previous fiscal year presented in this report has
been prepared based on the reportable segment for the fiscal year under review.
However, it is practically difficult to prepare a report for the photovoltaic power
generation system business for detached houses that was included in the former SE
Division by dating back the necessary financial information and including it in the new
SE Division. Therefore, it is included in the PV Division.
Ⅱ. Calculation method of net sales, profits, losses, assets, liabilities and other items byreporting segment
The accounting method of reported business segments complies with the accounting
policy adopted for preparing consolidated financial statements.
Profits in the reportable segments are based on operating income.
Intersegment sales and transfers are determined by reference to current market
values.

25

Ⅲ.Information concerning the Amount of Net Sales and Operating Income (loss) bysegmentⅰ) FY2021 (From April 1, 2021 to March 31, 2022)(In Millions of Yen)
Segments
Eliminati
on or
Group
(note 2)

Consolidated(note 3)

PV

PPS

ERD

Total

Others

Total

－

8,780

9,808

16,97950,477459

50,936－50,936

－

－

－

27

28

56

－

56

(56)

－

12,421

2,487

－

8,780

9,836

17,00850,533459

50,993(56)

50,936

Operatingincome(loss)

2,382

227

－

(473)

(4,173)

3,158

1,121

(262)

859

(3,477)(2,618)Assets

2,595

343

－

5,364

3,103

17,68629,09445

29,1405,813

34,953

44

3

－

63

1

1,098

1,210

1

1,212

297

1,509

－

－

－

186

35

－

221

4

226

－

226

51

3

－

26

24

2,410

2,516

0

2,517

259

2,776

HS

ES

12,421

2,487

－

Total

Sales:
Sales tocustomers
Internal sales
amongsegments andtransfer
accounts

SE

Others:Depreciation
Impairment
lossesIncrease inproperty, plantand equipment
and intangible
assets(note1) The “Other” segment is a retail business selling photovoltaic power generation and electric power
as a set to detached houses through alliances with other companies.
(note2) Negative ¥3,477 million for adjustments of Operating income (loss) represents corporate expenses
not allocated to reportable segments. Corporate expenses are mainly general and administrative expenses
note attributable to reportable segments.
(note3) An adjustment of segment assets is the Company assets of ¥5,813 million that are not allocated to
the reportable segments and consist mainly of surplus funds for investment (cash and deposits), long-term
invested funds (investment securities) and assets related to administrative divisions.
(note4) Operating income (loss) is adjusted to operating loss of consolidated statements of income.

26ⅱ) FY2022 (From April 1, 2022 to March 31, 2023)(In Millions of Yen)
Segments
Eliminati
on or
Group
(note 2)

Consolidated(note 3)

HS

ES

SE

PV

PPS

ERD

Total

OthersTotal

11,449

2,575

1,726

8,625

5,381

16,51846,277－

46,277－

46,277

－

－

－

－

－

－

－

－

－

－

－

Total

11,449

2,575

1,726

8,625

5,381

16,51846,277－

46,277－

46,277

Operatingincome(loss)

1,337

130

(47)

22

239

3,153

4,835

－

4,835

(3,050)1,785

Assets

2,645

464

669

5,040

887

17,80927,516－

27,516

6,069

33,586

Depreciation

45

2

0

36

0

1,494

1,580

－

1,580

308

1,889

Increase inproperty, plantand equipment
and intangible
assets

49

0

1

61

2

1,322

1,436

－

1,436

129

1,566

Sales:
Sales tocustomers
Internal sales
amongsegments andtransfer
accounts

Others:(note1) Negative ¥3,050 million for adjustments of Operating income (loss) represents corporate expenses
not allocated to reportable segments. Corporate expenses are mainly general and administrative expenses
note attributable to reportable segments.
(note2) An adjustment of segment assets is the Company assets of ¥6,069 million that are not allocated to
the reportable segments and consist mainly of surplus funds for investment (cash and deposits), long-term
invested funds (investment securities) and assets related to administrative divisions.
(note3) Operating income (loss) is adjusted to operating loss of consolidated statements of income.

27(Per-share information)
FY2021(Apr.1, 2021 to Mar.31, 2022)

FY2022(Apr.1, 2022 to Mar.31, 2023)

Net assets per share¥98.52¥126.51

Net Income per Share, Diluted(¥72.16)¥27.87(note1) The diluted earnings per share for the fiscal year under review is not stated because there are noresidual shares. The diluted earnings per share for the previous fiscal year is not stated because it is net
loss per share and there are no residual shares.

(note2) The calculation basis of net assets per share is as follows.
FY2021(Apr.1, 2021 to Mar.31, 2022)
Total amount in net assets(¥ million)

FY2022(Apr.1, 2022 to Mar.31, 2023)

4,732

6,068

Amounts deducted from the total
amount in net assets (¥ million)

22

20

Non-controlling interests(¥ million)

(22)

(20)

Net assets at the end of period oncommon shares (¥ million)

4,709

6,047

Number of common shares at theend of period used in calculationof net assets per share (shares)

47,804,558

47,804,413(note3) The calculation basis of net income per share is as follows.
FY2021(Apr.1, 2021 to Mar.31, 2022)
Net Income per Share,
Diluted (¥ million)
The calculation basis of net
income per share is as follows(¥ million)
Profit attributable to owners ofparent on common shares(¥ million)
Average number of commonshares during the fiscal year
(shares)(Significant subsequent events)
None

FY2022(Apr.1, 2022 to Mar.31, 2023)(3,449)

1,332

－

－

(3,449)1,332

47,804,606

47,804,439

28

4. Supplemental Information
Consolidated Net Sales by Division（In Million of Yen）
From April 1 to March 31
Comparison
Unit
FY2021

FY2022Item
QTY

AmountQTY

AmountQTY

AmountTermite control construction*1,000
tsubo

589

3,641

607

3,939

17

298

Under-floor/attic ventilation system

－

－

3,141

－

2,869

－

-271

4,957

2,054

3,943

1,692

(1,014)

-361

－

－

3,584

－

2,948

－

-636

－

－

12,421－

11,449－-971

Anti-rust equipment installation

Piece

1,171

1,221

997

1,138

(174)

-82

Water supply and drainage repair

－

－

659

－

742

－

83

Waterproofing and renovation ofbuildings

－

－

207

－

320

－

113

Others

－

－

398

－

373

－

-25

－

－

2,487

－

2,575

－

88

－

－

－

－

1,726

－

－

－

－

－

－

1,726

－

－

Sales and installation of PV system

－

－

8,447

－

8,389

－

－

Wholesale of PV system

－

－

261

－

143

－

－

Others

－

－

71

－

93

－

－

Phtovoltaic Division Total

－

－

8,780

－

8,625

－

－

Sales of Electricity

－

－

9,836

－

5,381

－

-4,454

－

－

9,836

－

5,381

－

-4,454

Plastic fuelｔ

281,801

10,574273,475

9,829(8,326)-745

Power Plant

－

－

2,986

－

3,122

－

135

Waste liquid treatment

ｔ102,210

2,073

99,656

2,059(2,554)-14

Landfill

－

－

911

－

1,014

－

103

OthersFoundation 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

House

－

－

461

－

492

－

30

Environmental Resources
Development Division Total－－

17,008－16,518－-489

Others

－

－

459

－

－

－

-459

Adjustment of intersegment sales

－

－

(56)

－

－

－

56

Total Net Sales－－

50,936－

46,277－-4,659(Note 1) Descriptions are omitted for items that are handled in such a wide range that it is difficult to grasp their quantity.
(Note 2) 1,000 tsubo is approximately 3,305.785 ㎡.
(Note 3) The Group reclassified its reportable segments in the second quarter under review, and year-on-year comparisons of the SE
Division and the PV Division are omitted due to the practical difficulty of recalculating figures for the same period of the previous year.