SANIX INCORPORATED
Consolidated Financial Statements
For the First quarter ended June 30, 2013

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

Consolidated Financial Statements
For the First quarter ended June 30, 2012

SANIX INCORPORATED
Stock Listed:Tokyo Stock Exchange First Section, Fukuoka Stock Exchange

Code No;

4651

URL:

http://www.sanix.jp/index_e.htm

President and CEO:Shin-ichi Munemasa

Contact:

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

1. Consolidated Financial Highlights for the first quarter ended June 30, 2013
(1) Consolidated Operating Results(Millions of Yen)First Quarter
From April 1 to June 30
FY2013

FY2012%change%change

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

16,027

81.7%

8,822

17.6%

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

1,056

-

(115)

-

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

1,015

-

(115)

-

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

830

-

(170)

-

Net Income per Share (¥)··················································¥17.40-(¥3.58)-Net Income per Share(, Diluted(¥)····································

-

-

-

-

(Reference) Comprehensive Income·······························

827

-

(170)

-

(2) Consolidated Financial Position(Millions of Yen)
As of June 30

As of March 31

FY2013

FY2012

Total Assets ·········································································

29,19633,756

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

9,664

8,837

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

28.5%

30.2%

Net assets per share(¥)······················································¥201.98¥184.62

Reference

Shareholders’ equity as of June 30 2013

9,636 million yen

Shareholders’ equity as of March 31 2013

8,808 million yen

2. Dividends
At the end of
1st

2nd

3rd

4th

Quarter

Quarter

Quarter

Quarter

Annual(Dividends per Share)
FY2012 ended March 31, 2012. ……………….

-

0.00

-

0.00

0.00

FY2013 ending March 31 ,2013(forecast) ……..

-

0.00

-

0.00

0.00

3. Forecasts for Consolidated Business Results(For the fiscal year ending March 31,2014)
FY2013First Half%change

Full Year%change

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

34,10087.5%

71,50064.9%

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

2,825

438.8%

8,000

327.7%

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

2,800

450.4%

7,950

344.4%Net Income··········································································

1,680

342.9%

5,100

223.8%Net Income per Share (¥)··················································¥35.21-¥106.90-

There is no change from initial projections for semi-annual and annual operational results publicly announced on May 14, 2013.

4. Others(1) Changes in significant subsidiaries during the period: None
(Note) Indicates changes in specified subsidiaries resulting in the change in consolidation scope during the firstquarter ended June 30, 2012.
(2) Adoption of special quarterly accounting methods: None
(Note) Indicates adoption of simplified accounting treatment and special accounting treatments for quarterly
consolidated financial statements(3) Changes in accounting principles, accounting estimates and correction of prior errorsⅰ)Changes in accounting principles due to revisions to accounting standards: Noneⅱ)Changes other than shown in ⅰ) above: Noneⅲ)Changes in accounting estimates: Noneⅳ)Correction of prior period error: None
(4) Number of Shares Issued and Outstanding(Shares)Number of shared issued and outstanding at period end··································First Quarter

Full Year

Ended June 30,2013

Ended March 31,2012

48,919,396

48,919,396

Number of treasury stocks at period end·····························································

1,210,533

1,210,375

Average number of shares issued and outstanding during the fiscal term·······

47,708,927

47,709,362*Implementation status about the quarterly review:
This summary of financial statements is exempt from quarterly review procedure required by Financial Instruments andExchange Act. A part of quarterly review for securities report based on Financial Instruments and Exchange Act have notfinished at the time of disclosure of this summary of financial statements.
*Note to ensure appropriate use of forecasts:
Forecasts in this document are based 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 ineconomical conditions.

Index of the attachment
1. Qualitative Information for the first quarter ended June 30, 2013

1(1) Qualitative Information of Consolidated Operation Results …………………………………………………….

1(2) Qualitative Information of Consolidated Financial Position ......................................………..…..….…….…

2(3) Qualitative Information of the Forecast of Consolidated Business Results …………..….………………...…

3

2. Other Information

3(1) Changes in significant subsidiaries during the period ..........................................................………….….…

3(2) Adoption of special quarterly accounting methods................……………...……………………………………

3(3) Changes in accounting principles, procedures and presentation methods...................…........………..…...

3

3. Consolidated Financial Statements for the first quarter ended June 30, 2013

4(1) Consolidated Quarterly Balance Sheets ......................................................................….....…………….…

4(2) Consolidated Quarterly Statements of Income and Comprehensive Income........................……………….

6

Consolidated Quarterly Statements of Income
For the first quarter...........................................................…...………….…..………………………………

6

Comprehensive Income
For the first quarter...........................................................…...………….…..………………………………

7(3) Note regarding assumption of a going concern……………………………………………………………..……

7

Note regarding significant changes in the amount of shareholders’ equity…………………………………….

7

Segment Information………………………………………………………………………………………………....

8

4. Supplemental Information
Net Sales by Segment...…………………………………….………..…………………………………………...…

8
8

1

1.Qualitative Information for the first quarter ended June 30, 2013
(1) Qualitative Information of Consolidated Operation Results
In the first quarter of the fiscal year ending March 31,2014, the Japanese economy recovered moderately on theback of heightened expectations regarding governmental economic policy and the effect of already-adopted
financial measures coupled with a rise in stock prices and the yen’s depreciation, as well as signs of a turnaround in
corporate earnings and personal consumption. On the other hand, the outlook for global economy remained
obscure with slowing growth in emerging countries economies and the continuing to stagnate.

Under such circumstances, our group have concentrated our business resources on commercial solar powersystem which is expected to become a huge market encouraged by the government’s active promotion for the useof green energy, including the “Renewable Energy Feed in Tariff Purchasing Program” started in July 2012, while
stimulating demand for it. As a result, we have determined to consider that commercial solar power system andelectricity sales recycling waste plastic to be used as fuel are the two important pillars of our group.

The Net Sales of the Commercial PV Solution(CPS) Division in the first quarter of this fiscal year recorded
significant increase with the “commercial solar power system” contributing to the sales, the construction of whichstarted in full scale during the fourth quarter of this fiscal year. The HS (Home Sanitation) Division recorded arevenue decrease in sales of “residential solar power system” due to the personnel cut and shift to the CPS Division.
The ES (Establishment Sanitation) Division recorded a revenue growth in the commercial solar power systems forbuildings and condominiums contributing to the result. In the Environmental Resources Development (ERD)
Division, the revenues from plastic fuel increased and those from the electricity sales also increased because
TOMAKOMAI Power Plant continued to be in stable operation. As a consequence, the Net Sales of the entire groupwere 16,027 million yen, or up 81.7% from a year earlier.

In terms of profitability, the CPS Division turned profitable and became a important pillar mainly due to the revenue
growth of commercial solar power system. In the HS Division, although the significant decrease of revenue from thesales of “residential solar power system”, recorded significant increase in profit due to the increase in sales ofexisting products with good net sales raw material ratio such as “termite control” and “sub-floor/roof ventilation
system”. The ERD Division recorded profit increase due to revenue growth of all products in this division.
As a consequence, for the whole group, the operating income increased to 1,056 million yen compared to the lossof 115 million yen in the same period of a prior year, and the ordinary income was 1,015 million yen(loss of 115
million yen in the same period of a prior year), with the net income increasing to 830 million yen from loss of 170
million yen of net income in the year earlier period.

Consolidated results of individual divisions for this quarter were as follows:
Earnings of Individual Divisions:
Commercial Photovoltaic Solution (CPS) Division
In this quarter, the sales of commercial solar power system started to contribute fully to the overall revenues fromthe 4th quarter of the last fiscal year recorded 5,969 million yen, and the wholesales of commercial solar power

2

modules and other components increased to 387.7%. As a result, the sales increased

7,729 million yen comparedto the loss of 360 million yen in the same period of a prior year.
The operating income was 645 million yen compared to the loss of 38 million yen in the same period of a year
earlier, absorbing advertising costs for newspaper ads and others.

Home Sanitation (HS) Division
The sales of the existing products such as “termite control” and “sub-floor/roof ventilation system,” increased 53.2%
compared to last year, the revenues of residential solar power system, on the other hand ,decreased 79.6%
compared to last year with the personnel shift to the CPS Division. As a result, the net sales of the division
decreased 24.8% to 3,114 million yen compared to the year-earlier period.
The operating income increased 276.7% to 601 million yen compared to the same period of a year earlier, due tothe increase in sales of existing products with better net sales raw material ratio.

Establishment Sanitation (ES) Division
The sales of works on buildings and condominiums related to maintenance and management run on same levelcompared to the year earlier period. The sales of solar power system increased 402.6% compared to the year
earlier period after reinforcing the sales activities for corporate customers and the construction structure. As a result,the net sales increased 65.4% to 1,196 million yen compared to last year.
The operating income increased 175.2% to 31 million yen compared to a year earlier, due to increase in sales.

Environmental Resources Development (ERD) Division
The sales from plastic fuel increased in terms of volume, resulting in 13.6% increase compared to the year-earlier
period. The revenues from electricity sales showed a increase of 8.6% compared to a year earlier, due to the startof stable power generation at SANIX Energy’s TOMAKOMAI Power Plant. In addition, organic waste-water
processing recorded 7.1% increase from last year due to increased in terms of volume. As a result, the net sales
increased 10.8% to 3,986 million yen compared to the year earlier period.
The operating income increased 49.2% to 439 million yen, along with the division turning profitable due to increasein sales of all domain and enhancement of profitability as a result of cost reduction.

(2) Qualitative Information of Consolidated Financial Position
Assets, Liabilities and Net Assets
Total assets amounted to 33,756 million yen at the end of the first quarter of this consolidated fiscal year, a increaseof 4,560 million yen from the end of the previous consolidated fiscal year. This was mainly due to an increase inNotes and accounts receivable-trade and Raw materials and supplies. Consequently, the ratio of owners’ equity
was 28.5% compared to 30.2% in the same period of a year earlier.
Liabilities amounted to 24,091 million yen, an increase of 3,732 million yen from the end of the previous
consolidated fiscal year. This was mainly due to an increase in Notes and accounts payable-trade and Short-termloans payable.
Net assets totaled 9,664 million yen, a increase of 827million yen from the end of the previous consolidated fiscal
year. This was primarily due to the net profit of 830 million yen incurred during the quarter.

3(3) Qualitative information on the forecast of consolidated business results
There is no change in the forecast of consolidated business results for the current fiscal year ending March 2014,
the SANIX Group announced on May 14, 2013.

2. Other Information(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in consolidation scope): None
(2) Adoption of special quarterly accounting methods : None
(3) Changes in accounting principles, procedures and presentation methods: None

4

3. Consolidated Financial Statements for the first quarter ended June 30, 2012
(1) Consolidated Quarterly Balance Sheets(thousands of Yen)
As of March 31

As of June 30

FY2012FY2012

Assets:Current Assets:
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process-construction
Raw materials and supplies
Other
Allowance for doubtful accounts
Total Current Assets:

3,559,160

3,556,666

7,356,616

8,785,969

60,03682,735260,009113,371

2,577,620

5,451,392

980,185

821,536(142,104)(154,314)

14,651,525

18,657,356

1,890,399

1,869,891

Fixed Assets:
Property, Plant and Equipment:
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Other, net
Total Property, Plant and Equipment:
Intangible Fixed Assets:
Goodwill
Other, net
Total Property, Plant and Equipment:
Investments and Other Assets
Total Fixed Assets:

Total Assets:

557,997565,437

8,889,529

8,889,529

899,192

1,602,164

12,326,117

12,927,021

625,370

597,368

60,12359,258685,493656,627

1,533,173

1,515,329

14,544,785

15,098,977

29,196,310

33,756,334

5(thousands of Yen)
As of March 31

As of June 30

FY2012FY2013Liabilities:
Current Liabilities:
Notes and accounts payable-trade
Short-term loans payable
Accounts payable-other
Lease obligations
Provision
Other
Total Current Liabilities:

5,459,789

7,399,383

3,338,000

4,392,000

3,166,433

3,541,320

362,883

392,780

83,01831,0952,462,943

2,738,184

14,873,068

18,494,765

Non-Current Liabilities:
Bonds payable
Long-term loans payable
Provision for retirement benefits
Provision for directors' retirement benefits
Provision for disposal site closing expenses
Other
Total Non-Current Liabilities:

Total Liabilities:

50,00050,0002,819,551

2,899,952

1,419,934

1,431,234

179,756

180,131373,699

388,561

643,103

646,958

5,486,044

5,596,838

20,359,113

24,091,603

14,041,834

14,041,834(3,733,267)(2,902,946)(1,610,889)(1,611,018)

8,697,677

9,527,870

Net Assets:
Shareholders' Equity:
Capital stock
Retained earnings
Treasury stock
Total Shareholders' Equity:

Valuation and translation adjustments:
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total Valuation and translation adjustments:

Minority Interests:
Total Net Assets:
Total Liabilities and Net Assets:

78,14774,59032,35633,594

110,503108,185

29,016

28,675

8,837,197

9,664,730

29,196,310

33,756,334

6(2) Consolidated Quarterly Statement of Income(thousands of Yen)First Quarter
From April 1 to June 30
FY2012

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income:Interest income
Dividends income
Land and house rent revenue
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Commision paid
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary loss:
Loss on retirement of fixed assets
Total extraordinary loss
Income (loss) before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income (loss)

FY20138,822,722

16,027,570

6,268,556

11,305,599

2,554,166

4,721,970

2,669,741

3,665,591(115,575)

1,056,378

1,406

1,298

8,676

4,628

17,017

18,76015,333

18,62842,43343,31541,89542,55717

18,861-

22,218753

616

42,666

84,255(115,808)

1,015,439

503
503

-

(116,312)

1,015,439

51,664

188,382

3,059(2,923)54,723

185,459(171,036)

829,980

(419)

(340)

(170,617)

830,320

7（Comprehensive Income）(thousands of Yen)First Quarter
from April 1 to March 31
FY2012

Income before minority interests
Other comprehensive income
Share of other comprehensive income of associates accounted forusing equity method
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to parent company
Comprehensive income attributable to minority interests(3) Notes to Quarterly Consolidated Financial Statements(Notes to going concern)

None(Notes to remarkable changes in Shareholders' Equity)

None

FY2013(171,036)

829,980833(3,557)

－

1,238

833

(2,318)(170,203)

827,661(169,784)

828,002

(419)

(340)

8

(Segment Information)
I. Prior First Quarter (From April 1, 2012 to June 30, 2012)(Thousands of Yen)
Segments

CPS

HS

ES

ERD

Total

Adjustment Consolidated(note 1)

(note 2)

Sales:
Sales to customers

360,859

4,140,839

723,326

3,597,698

8,822,722－ 8,822,722

Internal sales among segments
－

－

－

－

－

Total

360,859

4,140,839

723,326

3,597,698

8,822,722

Operating income(loss)(38,418)

159,565

11,468294,409427,026

and transfer accounts－－－ 8,822,722(542,601)(115,575)(note 1) Negative 542,601 thousand yen 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.
(note 2) Operating income(loss) is adjusted to operating loss of Consolidated quarterly statements of income.

II. This First Quarter (From April 1, 2013 to June 30, 2013)(Thousands of Yen)
Segments

CPS

HS

ES

ERD

Total

AdmustmentConsolidated(note1)(note2)

Sales:
Sales to customers

7,729,743

3,114,760

1,196,598－－－

7,729,743

3,114,760

1,196,598

645,238

601,158

31,5603,986,467 16,027,570－ 16,027,570

Internal sales among segments
and transfer accounts
Total
Operating income(loss)－－

3,986,467 16,027,570
439,320

1,717,276－－－ 16,027,570(660,897) 1,056,378(note 1) Negative 660,897 thousand yen 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.
(note 2) Operating income(loss) is adjusted to operating income of Consolidated quarterly statements of income.

9

4. Supplemental Information
Consolidated Net Sales by Segment(Thousands of Yen)First quarter
Changesfrom April 1 to June 30
FY2012
Commercial photovoltaic power generation system

FY2013-

5,969,715

5,969,715

Wholesale of photovoltaic system components

360,859

1,760,027

1,399,168

Commercial Photovoltaic Solution Total:

360,859

7,729,743

7,368,884

Solar photovoltaic power generation system

2,430,759

494,938(1,935,820)

Termite Eradication Service

703,717

1,027,940

324,222

Under-Roof/Floor Ventilation System

271,020462,079

191,058

Foundation Repairing/Home Reinforcement System

186,385

290,151

103,766

Other

548,956

839,651

290,694

Home Sanitation Division Total:

4,140,839

3,114,760(1,026,078)

Anti-rust equipment installation

119,319599,707480,388

Repair of building water-works

149,719

133,101(16,618)

Waterproofing of building

211,224

261,159

49,935

Solar photovoltaic power generation system

74,12859,131(14,997)

Other

168,934

143,499(25,435)

Establishment Sanitation Division Total:

723,326

1,196,598

473,272

Plastic fuel2,137,029

2,427,773

290,743

Industrial waste (Organic Waste Water Recycle)

752,778

817,497

64,718Generation of electricity

412,303441,670

29,367

Final disposal

151,442

154,018

2,575

Other

144,144

145,507

1,363

Environmental Resources Development Division Total:

3,597,698

3,986,467

388,769

Total Net Sales:

8,822,722

16,027,570

7,204,847