Code：4651

Financial Results Briefing For
the Three Months Ended June 30, 2023

SANIX INCORPORATED
August 9, 2023

Contents
1. Financial Results of FY2023 1Q

P.3

2. Financial Results forecast of FY2023

P.20

3. Application for Standard Market

P.28

Supplementary materials
4. （Business Structure）

P.31（Note）
・ Numbers are rounded off to the nearest whole number.
・ “( )” in operating income, ordinary income and net income indicate operating loss, ordinary loss and net loss respectively.
・ In case of negative or above 1,000%, margin is expressed by “-”.
Copyright© SANIX INCORPORATED

1

Financial Results for the Fiscal year
Ended March 31,2023

Copyright© SANIX INCORPORATED

2

Financial Results of FY2023 1Q
Sales and profits decreased year on year, but profitability
surpassed the plan.
⚫

In the PPS Division, Sales were approximately half of the previous year, reflecting the restructuring of thebusiness that began in the previous year.

⚫

In the ERD Division, sales and profitability rose, reflecting the April revision of the unit contract price ofelectricity sold by the Tomakomai power plant.

⚫

A statutory inspection was carried out according to plan at the ERD Division's Tomakomai Power Plant.

Millions of Yen

FY2022
1Q Results

FY2023
1Q Results

FY2023
1Q Plan

YoY

Plan ratio

Net Sales

11,346

11,081

11,550

97.7%

95.9%

Gross Profit

4,080

3,757

3,785

92.1%

99.3%

(Gross Profit Margin)

36.0%

33.9%

32.8%

Operating Profit

341

154

93

45.2%

165.6%(Operating Profit Margin)

3.0%

1.4%

0.8%

Ordinary Profit

270

73

38

27.1%

190.1%(Ordinary Profit Margin)

2.4%

0.7%

0.3%

Profit (loss) attributableto owners of parent

174

63

36

36.4%

172.7%(Net Profit Margin)

1.5%

0.6%

0.3%

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Net Sales of FY 2023 1Q
Net Sales Composition
FY2022
1Q Results

FY2023
1Q Results

11,346

11,081

11,550

FY2023
1Q Plan

YoY

Plan ratio

Millions of Yen

Net Sales

HS

97.7%

95.9%

ERD

27.3%

40.6%

Residential Environment

4,293

3,938

4,377

91.7%

90.0%

Energy

2,981

2,647

2,768

88.8%

95.6%

Resource Circulation

4,071

4,495

4,403

110.4%

40.6%

2.6%

PV

5.3%

18.6%

Energy■ Year-on-Year Comparison

Resource
Circulation【millions of Yen】

＋71

-109

＋372

11,346

【ＨＳ】

SE

23.9%

102.1%

Residential
Environment

FY2022 1Q

ES
5.6%

PPS

-317

35.5%

FY2023
1Q

【ＥＳ】

【ＳＥ】

【ＰＶ】

-706

＋423

11,081

【ＰＰＳ】

【ＥＲＤ】

FY2023 1Q

Residential Environment

EnergyResource Circulation

-354

-333

＋423

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Operating Profit of FY2023 1Q
Operating Profit Margin
FY2022
1Q Results

FY2023
1Q Results

FY2023
1Q PlanOperating Profit

341

154

93

45.2%

165.6%

Residential Environment

593

402

680

67.7%

59.1%

Energy

(96)

(9)

(55)

ー

ー

Resource Circulation

710

497

232

69.9%

213.6%

Group

(866)

(735)

(764)

ー

ー

YoY

Plan ratio

Millions of Yen

17.5%

13.8%
11.1%

10.2%

-3.2% -0.3%
Residential
Environment

EnergyFY2022 1Q■ Year-on-Year Comparison

＋60
＋3

＋11

-213

＋26

＋130

154

-206

【ＨＳ】

FY2023 1Q【millions of Yen】

341

FY2022 1Q

Resource
Circulation【ＥＳ】
Residential Environment

-191

【ＳＥ】

【ＰＶ】

【ＰＰＳ】
Energy【ＥＲＤ】【Group】

FY2023 1Q

Resource Circulation＋87
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【 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
7%

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
16%

Pest control and removal

Net Sales
FY2023 1Q¥3,938 million

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.

HS
77%

Residential solar power
generation system

Storage batteries

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【 Residential Environment Area 】【 HS Division 】 (Year-on-Year Comparison)⚫ Sales of termite control construction remained solid, reflecting an increase in the number ofcontracts with new customers due to the strengthening of new sales activities.
On the other hand, sales declined for underfloor/attic ventilation system and foundation repair/home reinforcement system, whose target customers are existing customers.
⚫ Profits decreased due to the impact of reduced sales, despite the reduction of SG&A expenses.

FY2023
1Q Plan【 millions of Yen 】

FY2022
1Q Results

FY2023
1Q Results

Net Sales

3,344

3,027

3,329

90.5%

90.9%

Termite control
construction

1,115

1,208

1,154

108.3%

104.7%

Under-floor/
attic ventilation system

821

712

832

86.7%

85.5%

Foundation Repair/
Home Reinforcement System

486

405

492

83.3%

82.3%

Others

920

701

850

76.2%

82.5%

2,126

1,889

2,101

88.9%

89.9%

651

445

651

68.3%

68.4%

YoY

Plan ratio

Millions of Yen

Gross Profit
Operating Profit

3,344
2,781

651

1Q

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231
2Q

2,465

72
3Q

2,857

3,027 3,288 3,044 3,174381

445 598

411

420

4Q

1Q

3Q

4Q

FY20222Q

FY2023

Net Sales(Plan)

Net Sales(Results)

Operating Profit(Plan)

Operating Profit(Results)7

【 Residential Environment Area 】【 ES Division 】 (Year-on-Year Comparison)⚫ Sales for water supply and drainage repairs and waterproofing and renovation of buildings
increased due to active sales as well as the strengthening of relationships with partners.
⚫ Despite higher sales, operating profit remained at the level of the previous year due to an increasein sales for work that required subcontracting.

FY2022
1Q Results

FY2023
1Q Results

547

618

FY2023
1Q Plan【 millions of Yen 】
YoY

Plan ratio

Millions of Yen

Net Sales608

113.1%

101.8%

643

641

-13

22

38

1Q

2Q

3Q

547

Anti-rust equipment
installation

223

218

290

98.0%

75.4%

Others

324

400

318

123.4%

125.8%

Gross Profit

275

290

341

105.6%

85.2%

Operating Profit

(13)

(10)

28

ー

ー

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743
618

83
4Q

FY2022

-10
1Q

684

664

644

63

35

36

2Q

3Q

4Q

FY2023

Net Sales(Plan)

Net Sales(Results)

Operating Profit(Plan)

Operating Profit(Results)8【 Residential Environment Area 】【 SE Division 】 (Year-on-Year Comparison)⚫ Launched the business in the pervious fiscal year and focused on sales of photovoltaic power
generation systems and storage batteries developed specifically for detached houses.
⚫ Sales temporarily declined, reflecting the allocation of staff to the development of business
partners with a view toward the improvement of sales efficiency.

【 millions of Yen 】

FY2022
1Q Results

FY2023
1Q Results

Net Sales

401

292

440

72.9%

66.5%

Gross Profit

136

79

146

58.2%

54.4%

Operating Profit

(44)

(33)

1

ー

ー

FY2023
1Q Plan

YoY

Plan ratio

Millions of Yen

491

443

401

390

-44

-55

9

43

1Q

2Q

3Q

4Q

FY2022

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292
-33
1Q

508

486

466

23

10

2

2Q

3Q

4Q

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(maintenance)

PPS Division

PPS
22%

Net Sales
FY2023 1Q¥2,647 million

PV
78%

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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【 Energy Area 】【 PV Division 】 (Year-on-Year Comparison)⚫ Actively accelerated the development of non-FIT power sources and the installation of corporateuse self-consumption type photovoltaic power generation plants.
⚫ Sales for maintenance services at existing photovoltaic power plants remained solid.
⚫ Increase of materials costs chiefly due to the impact of foreign exchange rates.

【 millions of Yen 】

FY2022
1Q Results

FY2023
1Q Results

1,691

2,064

2,187

122.0%

1,628

2,034

2,133

124.9%

95.3%

39

7

30

18.2%

24.0%

FY2023
1Q Plan

YoY

Plan ratio

2,927

2,929

2,477 2,527

Millions of Yen

Net Sales
Sales and installationof PV system
Wholesaleof PV system
Others

2,287

94.4%

2,064

1,691 1,716

23

22

23

95.8%

95.8%

Gross Profit

353

437

436

123.8%

100.2%

Operating Profit

(67)

(41)

(57)

ー

ー

-67

-91

1Q

2Q

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37

144

3Q

4Q

FY2022

-41

29

27

102

1Q

2Q

3Q

4Q

FY2023

Net Sales(Plan)

Net Sales(Results)

Operating Profit(Plan)

Operating Profit(Results)11【 Energy Area 】【 PPS Division 】 (Year-on-Year Comparison)⚫ Sales were approximately half of the previous year, reflecting the restructuring of the business thatbegan in the previous year.
⚫ Profitability improved due to the restructuring of the business with the goal of ending reliance on
procurement from the market.

FY2022
1Q Results

FY2023
1Q Results

1,289

583

Gross Profit

26

Operating Profit(28)【 millions of Yen 】

FY2023
1Q Plan

YoY

Plan ratio

Millions of Yen

Net Sales

1,624
1,289

581

45.2%

100.3%

6238

235.6%

162.9%

32

1

ー

ー

1,408
1,058
583

-28
1Q

161
2Q

578

573

104

1

32

4

-2

-0

3Q

4Q

1Q

2Q

3Q

4Q

FY2022

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640

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 future generations of people.
Fuel conversion of waste plastic

Resource Circulation Area
Net Sales Composition

We operate 15 plants (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.

Landfill 5%
Plastic resource
development factory

Others 4%

Plastic fuelResource recycling power generation system

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

Net Sales
FY2023 1Q¥4,495 million

Final disposal site

Power Plant
27%

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 factory

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【 Resource Circulation Area 】【 ERD Division 】 (Year-on-Year Comparison)⚫ Sales and profitability rose, reflecting the April revision of the unit contract price of electricity sold by
the Tomakomai power plant.
⚫ A statutory inspection was carried out according to plan at Tomakomai Power Plant. (Mid-March to
April 2023)

FY2022
1Q Results

FY2023
1Q Results

FY2023
1Q Plan【 millions of Yen 】
YoY

Plan ratio

Millions of Yen

Net Sales

4,071

4,495

4,403

110.4%

102.1%

Plastic fuel

2,438

2,376

2,502

97.5%

95.0%

Power Plant

753

1,227

1,076

162.9%

114.1%

Waste liquid treatment

511

481

516

94.2%

93.1%

Landfill

251

227

183

90.5%

123.6%

Others

117

183

124

155.5%

147.1%

1,161

998

721

85.9%

138.3%

710

497

232

69.9%

213.6%

Gross Profit
Operating Profit

4,071 4,146

4,400

710

847

784

810

1Q

2Q

3Q

4Q

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4,495

4,724 4,593

4,412

3,899

FY2022

1,318
497
1Q

2Q

985 1,073

3Q

4Q

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

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
〇

〇

〇

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）

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Consolidated financial condition

The equity ratio improved 0.3 percentage points to 18.3%.

Millionos of Yen

As of
As of
March 31,2023 June 30,2023

Difference

Ratio

Current Assets

13,683

12,850

- 833

93.9%

Non-Current Assets

19,902

20,791+ 888

104.5%

33,586

33,642+ 55

100.2%

Current Liablities

16,382

16,509+ 126

100.8%

Non-Current Liabilities

11,135

10,966

- 169

98.5%

Total Liabilities

27,51827,475

- 42

99.8%

Total Net Assets

6,068

6,166

+ 98

101.6%

Total Liablities and Assets

33,586

33,642+ 55

100.2%

Total Assets

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Capital investment / Depreciation【 Major capital investment 】⚫ Investment related to the Tomakomai Power plant ：326 Million Yen⚫ Investment related to the disposal of plastic waste ：201 Million Yen⚫ Investment related to the recycling of waste liquid： 54 Million Yen

FY2022
1Q Results

FY2023
1Q Results

Residential Environment

155Energy－59

Resource Circulation

405

584

Headquarter

27

62

Capital investment

448

711

Depreciation

427

390

Millions of Yen

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

personnel

As of June 30, 2023
sites

personnel

personnel
difference

HS Division

63

853

63

863

+ 10

ES Division

12

160

12

169

+9

SE Division

14

81

14

83

+2

PV Division

35

254

30

268

+ 14

PPS Division

1

15

1

12

-3

ERD Division

18

444

18

462

+ 18

Headquarter

―

247

―

244

-3

Total

―

2,054

―

2,101

+ 47

※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.

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Financial results forecast for FY2023

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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 Income●Net Sales●Operating Income¥47,965million (Y o Y 103.6%)¥3,231million (Y o Y 181.0%)

Key points of revision of the consolidated financial outlook 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.

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Financial results forecast for FY2023

First Half
Millions of Yen

Plan

Second Half

Diff. from FY2022

Plan

Full-Year

Diff. from FY2022

Plan

Diff. from FY2022

Net Sales

23,873+ 1,223

24,092+ 464

47,965+ 1,688

Gross Profit

8,746

+ 677

8,922

+ 781

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

36.6%

Operating Profit

1,452(Operating Profit Margin)

6.1%

Ordinary Profit

1,336(Ordinary Profit Margin)

5.6%

Profit (loss) attributableto owners of parent

1,035(Net Profit Margin)

4.3%

37.0%
+ 706

1,778

36.8%
+ 739

7.4%
+ 724

1,678

1,460
6.1%

Copyright© SANIX INCORPORATED+ 1,446

6.7%
+ 737

7.0%
+ 592

3,231

3,014

+ 1,462

6.3%
+ 570

2,495

+ 1,163

5.2%

21

Financial results forecast for FY2023 by segment

First Half
Millions of Yen

Net Sales

Plan

Second Half

Diff. from FY2022

Plan

Full-Year

Diff. from FY2022

Plan

Diff. from FY2022

23,873+ 1,223

24,092+ 464

47,965+ 1,688

Residential Environment

8,858

+ 750

8,479

+ 835

17,337+ 1,586

Energy

5,886

- 436

6,607

- 1,077

12,493- 1,513

Resource Circulation

9,128

+ 909

9,005

+ 705

18,134+ 1,615

1,452

+ 706

1,778

+ 739

3,231

+ 1,446

Residential Environment

1,365

+ 572

916

+ 287

2,281

+ 860

Energy

(21)

+4

126

- 160

104

- 156

Resource Circulation

1,551

-7

2,059

+ 465

3,611

+ 457

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

Operating Profit

Group

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Segment Forecast for FY2023【Residential Environment Area】⚫ The HS Division will expand new customer channels by reinforcing its corporate sales structure to enable JA and other business partners to expand, in
addition to developing new customers with close ties to the community. In addition to increasing the number of employees through hiring, the Division
will also focus on human resource development by providing a range of training programs suited to the employee's proficiency to enhance productivity.
⚫ The ES Division will expand sales channels for the installation of its main anti-rust product (brand name: Daelman Shock) by actively increasing contacts
with real estate owners through the development of partnerships with management companies, close follow-up with existing partners, and the use of
exhibitions and other events.
⚫ The SE Division aims to expand sales of photovoltaic power generation systems and storage batteries in response to the policy push fordecarbonization and energy conservation for detached houses and the need to reduce electricity rates and improve resilience (disaster response). At
the same time, the Division will facilitate alliances with house builders and construction companies to strengthen its sales structure.

First Half
Millions of Yen

Plan

Net Sales

8,858

HS Division

6,618

ES Division

Sales
proportion

Second Half
Diff. fromFY2022

Plan

+ 750

8,479

74.7%

+ 492

6,219

1,292

14.6%

+ 101

PV Division

948

10.7%

Cost of sales

3,678
Material costs
Labor costs

Gross Profit
SG & A
Personnel expenses

Operating Profit

Sales
proportion

Full-Year
Diff. fromFY2022

Plan

Sales
proportion

Diff. fromFY2022+ 835

17,337

73.3%

+ 895

12,83774.0%+ 1,387

1,308

15.4%

- 76

2,600

15.0%

+ 24

+ 156

952

11.2%

+ 17

1,900

11.0%

+ 173

41.5%

+ 175

3,804

44.9%

+ 378

7,482

43.2%

+ 553

1,369

15.5%

+ 253

1,357

16.0%

+ 125

2,726

15.7%

+ 379

1,227

13.9%

+ 81

1,312

15.5%

+ 127

2,540

14.7%

+ 208

5,179
3,814

58.5%

+ 575

55.1%

+ 457

+ 1,032

+2

44.3%

+ 169

9,854
7,573

56.8%

43.1%

4,674
3,758

43.7%

+ 171

2,388

27.0%

+ 67

2,378

28.0%

+ 144

4,766

27.5%

+ 212

1,365

15.4%

+ 572

916

10.8%

+ 287

2,281

13.2%

+ 860

Copyright© SANIX INCORPORATED+ 1,58623

Segment Forecast for FY2023【Energy Area】⚫ The PV Division has fully shifted to a non-FIT model, proposing solar power for self-consumption to corporations and municipalities, developing
renewable energy (solar) power sources based on partnerships with energy companies, and facilitating after-sales maintenance at existing solar power
plants. In addition, the Division will strive to reduce costs overall to strengthen competitiveness and increase profitability.
⚫ The PPS Division is expected to complete its business restructuring to minimize business risks which it has been working on since the end of FY2022,
and is expected to become about half the size of the previous year's business. After ensuring profitability, the Division aims to advance the managementof electricity supply and demand, with a view to building an electricity supply model to expand the use of photovoltaic power generation in the future.

First Half
Millions of Yen

Net Sales

Plan

Sales
proportion

5,886

Second Half
Diff. fromFY2022

Plan

- 436

6,607

Sales
proportion

Full-Year
Diff. fromFY2022Plan- 1,077

12,493

Sales
proportion

Diff. fromFY2022- 1,513

PV Division

4,664

79.2%

+ 1,256

5,455

82.6%

+ 237

10,11981.0%+ 1,494

PPS Division

1,221

20.8%

- 1,692

1,152

17.4%

- 1,314

2,373

19.0%

- 3,007

Cost of sales

4,848

82.4%

- 493

5,395

81.7%

- 921

10,24482.0%- 1,414

Material costs

3,476

59.1%

- 727

3,869

58.6%

- 1,059

7,346

58.8%

- 1,786

Labor costs

356

6.0%

- 14

379

5.7%

+ 23

735

5.9%

+9

1,037
1,059

17.6%

+ 56

18.3%

- 155

- 98

+ 52

16.4%

+5

2,249
2,144

18.0%

18.0%

1,211
1,085

17.2%

+ 57

519

8.8%

+ 14

537

8.1%

+ 12

1,056

8.5%

+ 26

(21)

－

+4

126

1.9%

- 160

104

0.8%

- 156

Gross Profit
SG & A
Personnel expenses

Operating Profit

Copyright© SANIX INCORPORATED

24

Segment Forecast for FY2023【Resource Circulation Area】⚫ In the ERD Division, power plant sales are expected to increase significantly due to a rise in the unit price of electricity sold by the Tomakomai power
plant. In plastic fuel sales and waste liquid treatment sales, the Division will work on obtaining consistent transactions, utilizing the waste management
system, etc., and through the steady expansion of the volume of acceptance by cultivating new customers while having detailed follow-up for existingcustomers as the business foundation. The Division will also broaden the range of waste materials suitable for acceptance by entering into material
recycling.
⚫ In terms of expenses, statutory inspections of Tomakomai power plant's boilers and turbines will occur this year, and maintenance costs are expected torise significantly due to the fact that the plant has been in operation for 20 years.

First Half
Millions of Yen

Plan

Net Sales

9,128

Plastic fuel

4,979

Power Plant
Waste liquid treatment

Sales
proportion

Second Half
Diff. fromFY2022

Plan

+ 909

9,005

54.6%

+ 104

5,005

2,495

27.3%

+ 921

1,043

11.4%

Landfill

360

OthersCost of Sales
Labor costs

Gross Profit
SG & A
Personnel expenses

Operating Profit

Sales
proportion

Full-Year
Diff. fromFY2022

Plan

Sales
proportion

Diff. fromFY2022+ 705

18,134

55.6%

+ 52

9,985

55.1%

+ 156

2,341

26.0%

+ 793

4,837

26.7%

+ 1,714

+5

1,077

12.0%

+ 55

2,120

11.7%

+ 61

3.9%

- 128

328

3.6%

- 197

688

3.8%

- 325

249

2.7%

+7

252

2.8%

+1

501

2.8%

+8

6,600

72.3%

+ 863

5,969

66.3%

+ 225

12,57069.3%+ 1,089

1,010

11.1%

+ 78

1,020

11.3%

+ 48

2,030

11.2%

+ 126

2,528
977

27.7%

+ 46

33.7%

+ 479

+ 525

+ 53

10.8%

+ 14

5,563
1,952

30.7%

10.7%

3,035
975

10.8%

+ 68

604

6.6%

+ 49

603

6.7%

+ 18

1,207

6.7%

+ 67

1,551

17.0%

-7

2,059

22.9%

+ 465

3,611

19.9%

+ 457

Copyright© SANIX INCORPORATED+ 1,61525

Important Management Indicators
FY2019Results

FY2020Results

FY2021Results

FY2022
Results

FY2023Plan

Return on equity

ROE

36.3%

27.9%

―

24.8％

35.0％

Return on assets

ROA

8.2%

6.4%

―

4.5％

9.0％

18.5%

24.5%

13.5%

18.0％

22.0％

10.8%

11.2%

―

8.4％

14.0％

Equity ratio
Return on invested
Capital

ROIC(Millions of Yen)FY2020Results

FY2021Results

FY2022
Results

FY2023
Plan

Capital investment

3,083

2,776

1,566

2,200~2,400

Depreciation

1,097

1,509

1,889

1,800

Copyright© SANIX INCORPORATED

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Stock Exchange Market
Application for Standard Market

Copyright© SANIX INCORPORATED

27

Status of our meeting the criteria for continued listingon the prime market
MarketPrime market

Status of the
SANIX

Status ofconformity

Number ofshareholders

800 personnel

11,869 personnel◎

Number of
tradable shares

20,000 unit

278,430 unit◎

Tradable share
Market capitalization

10.0 Billion yen

6.8 Billion yen

×Tradable share ratio

35.0％

56.9％

◎

Daily average tradingvalue

0.02 Billion yen

0.05 Billion yen◎

Net assets

excess assets

6.0 Billion yen◎

criteria⚫ As of March 31, 2023, we did not meet just one of the criteria for maintaining ourstock listing on the Prime Market, the market capitalization of tradable shares.

⚫ We developed a plan to meet the criteria for maintaining our listing and disclosed iton June 29, 2023.
Copyright© SANIX INCORPORATED

28

Selection of the Standard Market
Reason for selecting the Standard Market
The market capitalization of tradable shares reflects factors that cannot be addressed through our initiatives alone.
While it is important that we secure an environment in which shareholders continue to hold and trade our shares, we
can contribute to the sustainable growth and enhancement of the Company's corporate value by intensively
allocating management resources to facilitate the implementation of new growth strategies from medium- and longterm perspectives, instead of taking action from short-term perspectives just to satisfy the criteria for keeping ourstock listed on the Prime Market. Based on this assessment, we have decided to apply to be listed on the Standard
Market.

⚫ Progress toward meeting the criteria for maintaining listing on the Standard Market
MarketStandard Market

Status of the SANIX

Status of conformity

Number of shareholders

400 personnel

11,869 personnel◎

Number of tradable shares

2,000 unit

278,430 unit◎

Tradable share
Market capitalization

1.0 Billion yen

6.8 Billion yen◎

Tradable share ratio

25.0％

56.9％

◎

Monthly average
trading value

10 unit67,853 unit◎

excess assets

6.0 Billion yen◎

criteria

Net assets

We will continue working to maintain high-level governance and to proactively disclose information. In addition, we
will steadily implement the Medium-term Management Plan (FY2023 to FY2025), while also striving to growsustainably and improve corporate value with an eye toward leaping toward the achievement of the SANIX LongTerm Vision 2030.
Copyright© SANIX INCORPORATED

29

Supplementary materials（Business structure）

Copyright© SANIX INCORPORATED

30

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

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

PV Div.
PPS Div.

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

Residential
Environment⚫ HS Div.
⚫ ES Div.
⚫ SE Div.

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

Copyright© SANIX INCORPORATED

31

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

32

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
33

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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34

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)self-consignment
Private lines

retailerretailer

Partial supply

Partialsupplyretailer
Land owned by X Co.

X Co.

retailer

Partial supply

X Co.

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

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

Privately-owned(PV owned by X Co.)
self-consignment
Private lines

retailer

Partialsupplyretailer
Land owned by X Co.

PartialsupplyLand owned by X Co.
Partial supply

retailer

X Co.

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

Copyright© SANIX INCORPORATED

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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【 Tomakomai power plant 】

C&R(Landfill）

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

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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

Copyright© SANIX INCORPORATED

37

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.

Copyright© SANIX INCORPORATED

38

39