May 28, 2014
Notice of the SANIX’s New Mid-term Business Plan, “Sun Shine Plan 2016”
SANIX Incorporated (Ticker:4651,TSE/FSE, President & CEO: Shin-ichi Munemasa) announces
the new mid-term business plan, “Sun Shine Plan 2016” for the FY2014–FY2016 planning period,
approved by the Board of Directors at the board meeting held on May 28, 2014 as below.
1. Context for establishment of the new mid-term business plan
In response to the “Feed-in Tariff Scheme for Renewable Energy” launched in July 2012, SANIX
has focused on management resources in the rapidly expanding business field of commercial solar
power system(10kW or more). Regarding the business term ending in March 2014 as the year tolaunch the expansion of business operations, the company is constructing a framework, expanding
business operations, and accelerating the shift to energy business. On the other hand, the main
business for the environmental sanitation management business for households and businesses,
which has been the original business since the company’s founding, will be maintenance for existingclients. In the future, the company will roll out an environmental resource development business thatwill carry out resource recycling power generation. SANIX expects to significantly transform SANIX’s
business structure into an energy corporation through concentrated investment in commercial solar
power business for management resources.
Meanwhile, although commercial solar power business is a business field anticipated to grow in thefuture, it is possible that the “Feed-in Tariff Scheme for Renewable Energy” system will be
discontinued due to the fact that the purchase price (the tax-excluded price for 10kW or more will
drop from 36 yen to 32 yen in this fiscal year) is projected to fall and the fixed-price purchase period(20 years in the present policy) may be truncated.
Amid this market environment, market trends must be thoroughly grasped and opportunities in rapid
market changes quickly seized. Though this fiscal year’s purchase price for commercial solar powersystems has been reduced, the SANIX Group has judged there to be substantial trade inquiries for
system installment and healthy demand, and that the environment is ripe for active development ofbusiness.
Given the above, with the business term ending in March 2015 slated as the initial year, the SANIXGroup is clarifying the company’s direction and initiatives in various operations departments foreach fiscal year in order to accelerate the shift to a solid energy company by establishingrecognition and projection of the business environment, a management policy, business strategy,
numerical plan, and new mid-term business plan.
2. Summary of the new mid-term business plan, “Sun Shine Plan 2016”

(1) Recognition and projection of the business environment
In Japan, operations at nuclear power plants have been suspended one after another since theGreat East Japan Earthquake. Total generated energy has dropped to year of 2003 levels, and thevulnerability of the energy supply infrastructure has grown, including various problems such as arising trade deficit that accompanies increased operations of thermal power plants to compensate
for the reduced levels. On the other hand, rapid expansion of solar power and wind power has
been anticipated due to the “Feed-in Tariff Scheme for Renewable Energy” launched in July 2012
to actively promote renewable energy policies. Solar power, which can generate electricity during
the day when there is a particular demand for electricity, is a renewable energy suited to Japan.
The government’s Basic Energy Plan drawn up in 2014 specifies that, “acceleration of adoption
will be maximized for approximately 3 years from FY2013 and thereafter actively promoted.” In
addition, the plan aims for the percentage of renewable energy accounting for total generation to
be approximately 20% or more in 2030. Even viewed over the long term, the potential for adoptionof solar energy on roofs or the ground where installation is possible is deemed to be extremelygreat.
(2) The SANIX Group’s business strategy
Based on experiences cultivated to date, we will contribute to society via the spread andpromotion of environmentally friendly energy through business related to solar power andresource recycling power generation.
1.Expansion of commercial solar power business・ Precise response and expansion of shares in the West Japan area
・ Strengthening development of direct installation systems and expansion of shares in theEast Japan area
・ Promotion of self-manufacturing of main components such as solar modules andinverters
・ Promotion of cost reduction in increased installation of high-voltage projects from thebusiness term ending in March 2015
2.Expansion of resource recycling power generation
・ Improvement quality of plastic fuel and increased operation efficiency at power plants
・ Expansion of capacity by reinforcing plastic treatment facilities
・ Start of biomass power generation that uses organic waste processing (HIBIKI Plant)
3.Full-fledged launch of electricity retailing and wholesale business・ Entry into the retail business with a focus on liberalization of electricity retailing in 2016(3) Numerical plan
[Group consolidated](Millions of Yen)FY2013
actualFY2014Forecasts

FY2015
Projection

FY2016
Projection

Sales

84,221

161,500

251,000

330,000

Gross Profit

21,421

38,60056,00072,500

25.4%

23.9%

22.3%

22.0%

4,508

14,00024,00034,000

5.4%

8.7%

9.6%

10.3%

2,964

8,830

14,00020,000

3.5%

5.5%

5.6%

6.1%

Gross Profit Margin
Operating Income
Oparating Margin
Net Income
Net Income Margin

For more information, please contact to;
Kozo INOUE, Managing Corporate Officer,
General Manager of Management & Planning Division