SANIX INCORPORATED
Summary of Consolidated Financial Statements
For the Fiscal Year Ended March 31, 2019
[Japanese Standards]

The financial figures in this document are based on Japanese Accounting Standards and accompanying laws. Amounts arerounded off to 1 decimal place. This document is an English translation of the Japanese-language original.

Consolidated Financial Statements for the Fiscal Year ended March 31, 2019
SANIX INCORPORATED
Stock Listed:Tokyo Stock Exchange First Section, Fukuoka Stock Exchange

Code No;

4651

URL:

https://sanix.jp

President and CEO:

Hiroshi Munemasa

Contact:

Kozo Inoue, Management Corporate Officer,
General Manager of Corporate Planning Division, Administration Division andManagement & Planning Division

1. Business Results – Operating results for the Fiscal Year ended March 31, 2019
(April 1, 2018 to March 31, 2019)(1) Consolidated Operating Results(In Millions of Yen)
Fiscal Year
From April 1 to March 31
FY2018Net Sales······························································%change

50,7191.5%

FY2017%change

49,993(1.9%)

Operating Income ··················································

1,224(1.7%)

1,246

20.2%

Ordinary Income ····················································

1,182

16.0%

1,019

12.4%

Net Income ···························································

240(79.6%)

1,180

183.6%Net Income per Share (¥) ········································

¥5.02

－

¥24.68－Net Income per Share, Diluted(¥)······························

－

－

－

－

Return on Equity ····················································

5.9

－

34.4

－

Ratio of Recurring Profit to Net Assets ·······················

3.9

－

3.3

－

Ratio of Operating Income to Net Sales ·····················

2.4

－

2.5

－

(Note) Comprehensive Income ································

117(90.4%)

1,230

467.9%(2) Consolidated Financial Position(In Millions of Yen)
Fiscal YearAs of March 31
FY2017FY2018
Total Assets ···························································

31,00929,938Net Assets ····························································

4,193

4,076

Shareholders’ Equity Ratio (%) ·······························

13.4%

13.5%

Net assets per share(¥) ···········································¥87.08¥84.54(Reference) Equity Capital ·······································

4,162

4,041

(3) Consolidated Financial Cash Flows(In Millions of Yen)
Fiscal Year
From April 1 to March 31
FY2017FY2018Cash Flows from Operating Activities·························

(25)

2,184

Cash Flows from Investing Activities ··························

(947)

171

Cash Flows from Financing Activities ·······················

392(2,156)

Cash and Equivalents ,End of Period ························

4,497

5,083

2. Dividends
Quarterly Period
Total

1st

2nd

3rd

4th

Quarter

Quarter

Quarter

Quarter

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

AnnualPayoutDividends

Dividend

ratio

to Net Assets

paid(consolidated)(consolidated)

－

－

－

－

－

－

(Dividends per Share)
FY2017 ended March 31,2018 ·································FY2018 ended March 31,
2019 ·································FY2019 ended March 31,－

2020(Forecast) ···················

3. Forecasts for Consolidated Business Results (April 1, 2019 to March 31, 2020)(In Millions of Yen)
Fiscal Year
From April 1 to March 31
First Half%change

Full Year%change

Net Sales······························································

24,4640.1%

50,9000.4%

Operating Income ··················································

988

43.5%

1,910

55.9%

Ordinary Income ····················································

935

35.7%

1,810

53.0%

Net Income ···························································

745

283.7%

1,370

470.5%Net Income per Share (¥) ········································¥15.58* Notes(1) Changes in significant subsidiaries during the period(Changes in scope of consolidations resulting from change in subsidiaries): None
Number of subsidiaries newly consolidated－
Name of subsidiaries newly consolidated－
Number of subsidiaries excluded from consolidation－
Name of subsidiaries excluded from consolidation－¥28.66

(2) Changes in accounting policies and accounting estimates retrospective restatementⅰ) Changes in accounting policies based on revisions of accounting standard: Noneⅱ) Changes in accounting policies other than ones based on revisions of accounting standard: Noneⅲ) Changes in accounting estimates: Noneⅳ) Retrospective restatement: None
(3) Number of issued and outstanding shares (common stock)(Shares)
End of term
FY 2018

FY 2017

Number of issued and outstanding shares ,end of period (including treasury stock)48,919,396

48,919,396

Number of treasury stock at the end of period ······················································

1,114,173

1,113,923

Average number of shares during the period ·······················································

47,805,411

47,805,604(Reference) Business Result-Overview of non-consolidated Operating Results
1. Business Results – Operating results for the Fiscal Year ended March 31, 2019
(April 1, 2018 to March 31, 2019)(1) Non-Consolidated Operating Results(In Millions of Yen)
Fiscal Year
From April 1 to March 31
FY2018Net Sales······························································%change

47,825

6.5%

FY2017%change

44,888(1.6%)

Operating Income ··················································

513

413.3%

100(83.9%)

Ordinary Income ····················································

729

71.4%

425

(48.8%)Net Income ···························································

(62)

－

738

36.6%

Net Income per Share (¥) ········································(¥1.30)－¥15.45－Net Income per Share, Diluted(¥)······························

－

－

－

－

(2) Non-Consolidated Financial Position(In Millions of Yen)
Fiscal YearAs of March 31
FY2017FY2018
Total Assets ···························································

25,64925,026

Net Assets ····························································

2,035

2,112

Shareholders’ Equity Ratio (%) ·······························

7.9%

8.4%

Net assets per share(¥) ···········································¥42.59¥44.19(Reference) Equity Capital ·······································

2,035

2,112

* This summary of financial statements is exempt from audit procedure required by Financial instruments
and Exchange Act.
* Note to ensure appropriate use of forecasts:
on assumptions, prospects and plans as of the date of this document. Actual results may differ significantly from these forecasts,
due to various factors affecting the Company’s business performance, such as change in economical conditions. For details ofthese assumptions, prospects and plans, and for notes appropriate use of forecasts for the business results, please see page 6 of
the Attachment.

1. Index of the attachment
1. Information on Business Results & Financial Position for the fiscal year
ended March 31, 2019 ........................................................................................... 2(1) Information on Consolidated Business Results ..................................................................... 2(2) Information on Consolidated Financial Position ..................................................................... 4(3) Information on Consolidated Cash Flows ............................................................................... 5(4) Outlook for the next fiscal year ................................................................................................. 6

2. Basic Position regarding the Choice of Accounting Standards ............................ 7
3. Consolidated Financial Statements and Main Notes to the Statements ............. 8(1) Consolidated Balance Sheets................................................................................................... 8(2) Consolidated Statements of Income and Comprehensive Income ..................................... 10
Consolidated Statements of Income ...................................................................................... 10
Consolidated Statements of Comprehensive Income ......................................................... 11(3) Consolidated Statements of Changes in Net Assets. ...................................................... 12(4) Consolidated Statements of Cash Flows ................................................................................ 14(5) Notes to the Consolidated Financial Statements ................................................................... 15
Notes to the Assumption of a Going Concern ...................................................................... 15

4. Supplement Information .......................................................................................................... 16
Consolidated Net Sales by Division ....................................................................................... 16

2

1. Information on Business Results & Financial Position for the fiscal year
ended March 31, 2019(1) Information on Consolidated Business Results
In the fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019), theJapanese economy continued to follow a modest recovery path with consumer
spending showing signs of picking up, backed by improved corporate earnings andemployment conditions, despite future uncertainty remaining due to the contingency ofoverseas economies and unstable political situations in Japan and overseas.
Under such circumstances, the Group has been establishing a structure to sustain
growth and has been facilitating sustainable, stable management in the final year of the“Medium-Term Management Plan (FY2016-FY2018).”
Meanwhile, the damages suffered at the Tomakomai Power Plant (Tomakomai,
Hokkaido) due to the effects of the Hokkaido Eastern Iburi earthquake that occurred in
September last year were large and we were forced to proceed with recovery work forapprox. six months, which adversely impacted on the results of the Group.
As for net sales for the fiscal year under review, sales increased in the HS Divisionand the ES Division as a result of strengthening the sales system due to increase inpersonnel and store opening. Despite factors that contributed to the decrease in sales
due to the suspension of the Tomakomai Power Plant, other businesses remained
strong and sales of the Environmental Resources Development Business Division
increased. However, sales declined significantly in the SE Division due to the impact of
the contraction of the solar electric power market. As a result, net sales of the entire
Group stood at ¥50,719 million (up 1.5% year on year).
Profit increased in the HS Division and the ES Division despite factors contributing to
the decrease in sales due to the damages suffered at the Tomakomai Power Plant.
Profit decreased in terms of operating income and profit increased in terms of ordinary
income. As a result, for the entire Group, operating income came to ¥1,224 million(down 1.7% year on year) and ordinary income was ¥1,182 million (up 16.0% year onyear). Net income attributable to the owners of the parent company stood at ¥240
million (down 79.6% year on year) as a result of posting ¥472 million, the expectedamount of expenses for restoring the facilities at the Tomakomai Power Plant strickenby the Hokkaido Eastern Iburi earthquake, as a loss caused by the disaster under
extraordinary losses. The rate of decrease in profit was large compared to the previous
consolidated fiscal year when the deferred tax asset was posted.
Consolidated results of individual divisions for this fiscal year were as follows:a. Solar Engineering (SE) Division
In addition to the conventional contract construction of solar electric power systems,

3

although maintenance work related to incidental facilities was marketed and sales ofsolar power systems with land were promoted, the construction of solar electric powersystems decreased 17.9% year on year, impacted by lower systems prices. As a result,net sales declined to ¥14,427 million (down 19.3% year on year).
Although the Division proceeded with cost reduction by promoting rationalization, areduction in materials costs, the segment posted operating income of ¥1,204 million(down 27.8% year on year) due to a sharp decrease in net sales. It should be notedthat the Company recorded an inventory valuation loss of ¥152 million associated withthe decrease in profitability for power conditioners that had been manufactured inhouse.
b. Home Sanitation (HS) Division
HS Division strengthened the sales, customer management and construction systems
so that the Division would be able to make carefully crafted proposals for the
maintenance of ordinary houses by increasing personnel through transfers andrecruitment for the purpose of expanding its business size. As a result, termite
extermination increased 30.9% year on year, and underfloor/ceiling ventilation systems
rose 43.4% year on year. As a result, the division’s sales rose to ¥10,752 million (up20.5% year on year).
Operating income stood at ¥2,231 million (up 51.7% year on year) mainly thanks tothe significant increase in sales, an improvement in construction efficiency and a fall in
subcontract expenses, despite a rise in costs such as personnel expenses.
c. Establishment Sanitation (ES) Division
Sales of anti-rust equipment installation (brand name: Daelman Shock), our main
product, increased 77.4% year on year as a result of increasing personnel throughtransfers and recruitment for the purpose of expanding the business size of the Division,
strengthening sales activities to the owners of buildings and condominiums andenhancing relationships with partner companies, including management companies. As
a consequence, the division’s net sales rose to ¥1,926 million (up 33.4% year on year).
Operating income rose to ¥287 million (up 59.6% year on year), as with HS Division,
mainly due to the significant increase in sales, an improvement in construction
efficiency and a fall in subcontract expenses, despite a rise in costs such as personnel
expenses.
d. Environmental Resources Development (ERD) Division
Plastic fuel sales increased 14.0% year on year because the Division proceeded withcareful examinations of accepted articles to enhance the quality of plastic fuels, and theacceptance volume also remained stable. Although the suspension of the TomakomaiPower Plant was the factor for a decrease in net sales, electricity sales rose 4.6% year
on year due to higher volume in the Power Producer and Supplier (PPS) business. As a4result, net sales amounted to ¥23,612 million (up 8.5% year on year).
Profitability improvement of plastic fuels advanced and profitability was enhanced
because of measures to stabilize power procurement costs in the PPS business,
although a decrease in profit was substantial, associated with the Tomakomai Power
Plant. As a result, operating income of ¥836 million was secured (down 14.0% year onyear).
(2) Information on 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 ¥31,009 million,
an increase of ¥1,071 million from the end of the previous consolidated fiscal year.
Total liabilities stood at ¥26,815 million, a rise of ¥953 million from the end of theprevious consolidated fiscal year. Net assets totaled ¥4,193 million, an increase of¥117 million from the end of the previous consolidated fiscal year. As a consequence,the shareholders’ equity ratio stood at 13.4% as of March 31, 2019.
(The status of Assets)
Current assets increased 5.4% year on year and stood at ¥16,613 million, which wascaused chiefly by an increase in notes and accounts receivable-trade of ¥525 million, in
merchandise and finished goods of ¥746 million despite a decrease in raw materials
and supplies of ¥489 milion.
Fixed assets increased 1.5% year on year and came to ¥14,395 million yen, which wascaused chiefly by increases in machinery, equipment and vehicles of ¥166 million.
(The status of Liabilities)
Current liabilities rose 2.3% year on year and reached ¥23,529 million, which was
attributable largely to increases in short-term loans payable of ¥612 million andaccounts payable of ¥861 million, while notes and accounts payable-trade decreasedby ¥891 million.
Non-current liabilities increased 15.0% year on year and arrived at ¥3,285 million,
which was attributable chiefly to increases in lease obligations of ¥179 million andLiability related to retirement benefits of ¥176 million.
(The status of Net Assets)
Net assets rose 2.9% year on year and came to ¥4,193 million, which was caused
mainly by the posting of profit attributable to owners of parent of ¥240 million.

5(3) Information on Consolidated Cash FlowsThe cash and cash equivalents (hereinafter called “funds”) as of the end of the fiscal
year under review was ¥4,497 million, a decrease of ¥585 million from the end of theprevious year.
Cash flows and reasons for changes in cash flows during the period are described
below.
(Net Cash Provided by Operating Activities)
Net cash used in operating activities was ¥25 million (proceeds of ¥2,184 million in
the previous year), which was mainly caused by a decrease in notes and accounts
payable-trade of ¥877 million, an increase in accounts receivable-trade of ¥525
million and an increase in inventories of ¥173 million, although the Group booked net
income before tax of ¥710 million, depreciation expenses of ¥808 million as non-cash
expenditures.
(Net Cash Provided by Investment Activities)
Net cash used in investing activities was ¥947 million (proceeds of ¥171 million in theprevious year), which was largely caused by a net increase in term deposit of ¥351
million and expenditure of ¥577 million due to the acquisition of tangible fixed assets.
(Net Cash Provided by Financing Activities)
Net cash provided by financing activities amounted to ¥392 million (expenditure of¥2,156 million in the previous year), which was chiefly caused by a net increase in
short-term loans payable of ¥612 million, despite the expenditure of ¥131 million due
to repayment of long-term loans payable.
(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

FY2014FY2015FY2016FY2017FY2018

14.9%

8.3%

8.9%

13.5%

13.4%

37.6%

32.9%

28.9%

43.8%

37.5%

-

-

8.77

5.85

-

-

-

6.76

10.81

-

Interest coverage ratio(Note) Shareholder’s equity ratio: 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.
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 consolidated

6balance sheet on which interest is payable. Interest expenditure refers to interest expenses paid
according to the consolidated statement of cash flows.

(4) Outlook for the next fiscal year
The Group specified reinforcement of the business bases of the four Business
Divisions and the transition to sustainable, stable management in the “Medium-Term
Management Plan (FY2016-FY2018)” and has been steadily implementing it. Moreover,the new “Medium-Term Management Plan (FY2019-FY2021)” was formulated and theGroup strives for sustainable growth by further strengthening and expanding theexisting bases and put a new initiative on the track while maintaining sustainable andstable management.
Regarding the outlook for the future, the Group will maintain growth by appropriately
allocating management resources in SE/HS/ES businesses, based on the markets ofindividual businesses. Although net sales are expected to fall against the backdrop ofchanges in the market environment, such as lower FIT prices (¥14/kWh for FY2019) in
the SE Division, the Group will focus on maintenance work associated with incidental
facilities and sales of solar power systems with land. In the HS business division, theGroup will reinforce the business base by further developing new customers andexpanding the after-sales system for existing customers. After that, it will make efforts
to increase new customers and the number of customers by increasing personnel
through hiring and opening stores. In the ES Division, the Company will gain partnercompanies, including management companies, introduce the existing partnercompanies through close follow-ups , increase opportunities for referral through close
follow-ups on partner companies, direct negotiations with property owners and expand
sales channels of anti-rust equipment installation (brand name: Daelman Shock), ourmain product.
In the Environmental Resources Development Business Division, the Division willproceed with careful examinations of accepted articles to enhance the quality of plastic
fuels and improve profit margins and efficiency. Because the appropriate disposal ofwaste plastic, which causes marine pollution, is required on a global scale, the Division
will implement stable operation of the Tomakomai Power Plant to allow the resource
cyclic-type business of the Group to play a part.
An energy business division was set up in the Energy Business. The Group will strive
to expand the PPS business through business alliances, focusing on the developmentof other energy-related business and reinforcing the structure.
For the consolidated fiscal year ending March 31, 2019, the SANIX Group aims toachieve sales of ¥50,900 million (up 0.4% year on year) with operating income of¥1,910 million (up 55.9%), ordinary income of ¥1,810 million (up 53.0%) and net
income attributable to owners of the parent of ¥1,370 million (up 470.5%).

7

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 take proper steps toward the adoption of the International Financial ReportingStandards while giving due consideration to the circumstances in Japan and othercountries.

8

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

As of March 31
FY2018FY2017

Assets :Current Assets :Cash and deposits

5,482

5,238

Notes and accounts receivable-trade

5,485

6,010

Merchandise and finished goods

273

1,019

Work in process-construction

209

122

Raw materials and supplies

4,035

3,546

797

975

Other

(525)

(299)

15,75916,613

9,328

9,439

Less: Accumulated depreciation(7,247)(7,537)

Buildings and structures (net of depreciation)

2,080

1,901

Allowance for doubtful accounts
Total current assets
Fixed Assets:
Tangible fixed assets :Buildings and structures, net

Machinery, Equipment and vehicles, net
Less: Accumulated depreciation

11,715

11,955(10,526)(10,600)

1,189

1,355

Land

7,811

7,811

Lease assets, net

Machinery, Equipment and vehicles (net of depreciation)

1,294

1,143

Less: Accumulated depreciation

(700)

(513)

Lease Assets, net

594

630

Construction in progress

77

159

Other, net

957

1,013

Less: Accumulated depreciation

(784)

(814)

Other, net

173

199

11,926

12,057

Total Tangible fixed assets
Intangible fixed assets :Goodwill

65

-

Other

148

262

Total Intangible fixed assets

214

262

Investment securities

151

129

Deferred tax assets

582

612

Lease and guarantee deposits

629

609

Other

1,310

1,301

Allowance for doubtful accounts

(636)

(578)

Investments and other assets :Total investments and other assets
Total fixed assets
Total Assets

2,037

2,074

14,17814,39529,93831,0099(In Millions of Yen)

As of March 31
FY2018FY2017

Liabilities :Current Liabilities :Notes and accounts payable-trade

5,079

4,188

Short-term loans payable

11,685

12,297140

143

Accounts payable

3,069

3,930

Accrued expenses

1,049

1,098

Lease obligations

232

246

Accrued income taxes

409

462

Accrued consumption taxes

409

368

Allowance for resource-recycling expenses

27

12

Current portion of long-term loans payable

900

780

23,003

23,529Long-term loans payable

325

210

Lease obligations

396

575

Long-term lease deposited

45

45

Other
Total current liabilities
Non-Current Liabilities :Provision for directors’ retirement benefits

99Provision for disposal site closing expenses

573

603

1,465

1,642

41

198

2,857

3,285

25,861

26,815

14,041

14,041

Liability related to retirement benefits
Other
Total non-current liabilities
Total Liabilities

Net Assets :Shareholders’ Equity :Capital stock

1

1

Retained earnings(8,597)(8,357)

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

Total shareholders’ equity

3,964

4,204

Valuation difference on available-for-sale securities

76

60

Deferred gains or losses on hedges(0)-Capital surplus

Valuation and translation adjustments :Foreign currency translation adjustment

3

(17)

Adjustment for retirement benefits (cumulative)

(2)

(85)

Total valuation and translation adjustments

76

(42)

35

31

Non-controlling Interests
Total Net Assets

4,076

4,193

Total Liabilities and Assets

29,93831,00910(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(In Millions of Yen)

From April 1 to March 31
FY2018FY2017

Net sales

49,99350,719

Cost of Sales

35,94835,889Gross Profit

14,044

14,830

Sales commission

309

509

Advertising expenses

285

369

Selling, General and Administrative expenses

33

(38)

6,663

7,093

Retirement benefit expenses

168

172

Legal welfare expenses

804

869

Rent expenses

942

931

Depreciation

156

150

Others

3,434

3,547

Total selling, general and administrative expenses

12,79813,605

1,246

1,224

13

11

Provision of allowance for doubtful accounts
Salaries and bonuses

Operating Income (Loss)
Non-Operating Income :Interest income
Dividends income22Land and house rent revenue

63

64

Subsidy income

65

10

-

70

Other

61

49

Total non-operating income

205

209

Interest expenses

210

216

Rent expenses22Compensation received

Non-Operating Expenses :Foreign exchange losses

4-

Loss on retirement of non current assets

53

5

Other

161

27

Total non-operating expenses

432

251

1,019

1,182

-

472

Ordinary Income (Loss)
Extra Ordinary Loss :Loss on disaster
Total extra ordinary loss
Income (Loss) Before Income Taxes and Minority Interests

-

472

1,019

710

Income Taxes-Current

386

498

Income Taxes-Deferred

(549)

(24)

Total Income Taxes

(163)

473

Net Income

1,182

236

2

(3)

1,180

240

Net Income (Loss) Belonging to the Non-Controlling Shareholders
Net income (Loss) Belonging to the Shareholders of the Parent
Company11(Consolidated Statements of Comprehensive Income)(In Millions of Yen)

From April 1 to March 31
FY2018FY2017
Income Before Minority Interests
Other Comprehensive Income :Valuation difference on available-for-sale securities

1,182

236

4

(15)

Deferred gains or losses on hedges(0)0Foreign currency translation adjustment

32

(20)

Retirement benefit adjustment

11

(83)

Total other comprehensive income

47

(118)

1,230

117

1,227

121

2

(3)

Comprehensive Net Income
Comprehensive Income Attributable toComprehensive income (loss) belonging to the shareholders of
the parent company
Comprehensive income (loss) belonging to non-controllingshareholders

12(3) Consolidated Statements of Changes in Net Assets
The previous consolidated fiscal year (April 1, 2017 to March 31, 2018)(In Millions of Yen)

Shareholders’ equity
CapitalsurplusCapital stock
Balance at the beginning ofcurrent period

14,041Retainedearnings
1

Total
shareholders’equityTreasurystock(9,777)(1,481)

2,784

Changes of items during theperiodNet income belonging to theshareholders of the parent
company

1,180

Purchase of treasury stock

1,180
(0)

(0)

Net changes of items otherthan shareholders’ equity
Total changes of items
during the period

-

-

1,180

(0)

1,179

Balance at the end ofcurrent period

14,041

1(8,597)(1,481)

3,964(In Millions of Yen)

Accumulated other comprehensive income
Valuationdifferenceonavailable-f
or-salesecurities
Balance at the
beginning of current
period71

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

-

(28)

Total
Retirement accumulated Minority
interests
benefitsotheradjustment comprehen-s
ive income
(14)

28

32

Total net
assets2,845

Changes of items
during the period
Net income
belonging to theshareholders of theparent company
Purchase oftreasury stock
Net changes of
items other thanshareholders’ equity
Total changes of
items during theperiodBalance at the endof current period

1,180

(0)
4

(0)

32

11

47

2

50

4

(0)

32

11

47

2

1,230

76

(0)

3

(2)

76

35

4,076

13

The consolidated fiscal year (April 1, 2018 to March 31, 2019)(In Millions of Yen)

Shareholders’ equity
CapitalsurplusCapital stock
Balance at the beginning ofcurrent period

14,041Retainedearnings
1

Total
shareholders’equityTreasurystock(8,597)(1,481)

3,964

Changes of items during theperiodNet income belonging to theshareholders of the parent
company

240

Purchase of treasury stock

240
(0)

(0)

Net changes of items otherthan shareholders’ equity
Total changes of items
during the period

-

-

240

(0)

240

Balance at the end ofcurrent period

14,041

1(8,357)(1,481)

4,204(In Millions of Yen)

Accumulated other comprehensive income

Balance at the
beginning of current
periodValuationdifferenceonavailable-f
or-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

76

(0)

3

Total
Retirement accumulated Minority
interests
benefitsotheradjustment comprehen-s
ive income
(2)

76

35

Total net
assets4,076

Changes of items
during the period
Net income
belonging to theshareholders of theparent company
Purchase oftreasury stock
Net changes of
items other thanshareholders’ equity
Total changes of
items during theperiodBalance at the endof current period

240

(0)
(15)

0

(20)

(83)

(118)

(4)

(122)

(15)

0

(20)

(83)

(118)

(4)

117

60

-

(17)

(85)

(42)

31

4,193

14

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

April 1 to March 31
FY2018FY2017

Net Cash Provided by (used in) Operating Activities :Income before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill
Increase (Decrease) in reserve for directors’ retirement benefits

1,019

710

709

808

112

65

(154)

-

Increase (Decrease) in provision for bonuses(0)0

Increase (Decrease) in allowance for disposal site closing expenses

34

30

Increase (Decrease) in allowance for resource-recycling expenses

(0)

(15)

Increase (Decrease) in liabilities in retirement

71

94

Increase (Decrease) in allowance for doubtful accounts

(24)

(284)

Interest and dividends income

(15)

(13)

Interest expenses

210

216

Increase (Decrease) in notes and accounts receivable-trade

532

(525)

Increase (Decrease) in inventories

947

(173)

188

(72)

Increase (Decrease) in notes and accounts payable-trade(1,308)(877)

Increase (Decrease) in consumption tax refund receivable

134

(41)

Increase (Decrease) in other current liabilities

145

770

Other

158

(78)

Subtotal

2,763

615

16

13

Interest expenses paid

(202)

(233)

Income taxes paid

(396)

(457)

Increase (Decrease) in other current assets

Interest and dividends income received

Income taxes refund
Net cash provided by operating activities

3

35

2,184

(25)

(330)

(676)

Net Cash Provided by (used in) Investment Activities :Payments into time deposits
Proceeds from withdrawal of time deposits

654

324

Purchase of tangible fixed assets

(314)

(577)

Proceeds from sales of tangible fixed assets

202

3

Purchase of intangible assets

(37)

-

Other

(3)

(21)

Net cash provided by investing activities

171

(974)

(1,284)612

Net Cash Provided by (used in) Financing Activities :Increase (Decrease) in short-term loans payable
Proceeds from long-term loans payable-

20

Repayments of long-term loans payable

(553)

(131)

Repayments of finance lease obligations

(262)

(187)

Other

(55)

79

(2,156)392

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

8(5)

Net Increase (Decrease) in Cash and Cash Equivalents

207

(585)

Balance of Cash and Equivalents at beginning of period

4,875

5,083

Balance of Cash and Equivalents at end of period

5,083

4,497

15

(5) Notes to the Consolidated Financial Statements(Notes to Assumption of Going Concern): None16

4. Supplemental Information
Consolidated Net Sales by Division(In Millions of Yen)

By period
By item
Commercial PV System
Wholesales of PV Components
OthersSolar Engineering Total

From April 1 to March 31
FY2017FY2018Changes

16,647

13,661(2,985)

1,026

578

(448)

196

188

(8)

17,87014,427(3,442)

Termite Eradication Service

2,628

3,441

812

Under-Roof / Roof Ventilation System
Foundation Repairing/Home Reinforcement
System

1,254

1,779

544

1,957

2,126

169

3,081

3,384

303

8,922

10,752

1,829

Anti-rust Equipment Installation

522

927

404

Repair of Building Water-woks

415

447

32

Water Proofing of Building

123

188

64

Others

383

362

(20)

OthersHome Sanitation Division Total

Establishment Sanitation Division Total

1,444

1,926

482

Plastic Fuel

7,556

8,615

1,058

Generation of Electricity
Industrial Waste (Organic Waste Water
Recycle)11,095

11,603

508

1,748

1,958

209

654

788

134

OthersEnvironmental Resources Development
Division Total :

701

646

(54)

21,75523,612

1,857

Total Net Sales

49,99350,719726

Final Disposal(note) We have omitted description on the information that is too multifarious to see the exact volume ofitem.