Code︓4651

SANIX Long-Term Vision 2030
~Clean and comfortable environment
for the next generation~

Sanix Incorporated
May 24,2021

Formulation of the Long-Term Vision
1995
Kyoto Protocol comes into force

2015

Measures addressing global
warming

2021

2030

2050

Measures addressing resource
depletion

Green Growth Strategy
Formulation of the Long-Term Vision for 2030
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Changes in Social Conditions and Corporate Philosophy
Toward a sustainable society“Clean and comfortable environment for the next
generation”

Improvement of residential
environment- Safe and comfortable living -Transition to a
decarbonized society

Transition to a circularsociety

Residential
Environment
Field

 make it natural “A comfortable living environment
is linked to the next generation”••••

Termite prevention and extermination
House reinforcement and renovation
Building and condominium durability improvement
Hygiene management

Field make it common “Energy with low environmental
impact”• Sales and construction of PV system• Retail and wholesale electricity

Resource

 make it common “Recycling resources without
abandoning them”

Energycirculation

•
•
•
•

Conversion of waste plastics into fuelThermal power generation using waste plastic-based fuelOrganic Waste Water
Conversion of sludge to fuelCopyright© SANIX INCORPORATED

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Goals for 2030
Increase net sales for FY2030 ending March 31, 2031 to 100 billion yen,double the amount planned for the fiscal year under review.

Gross profit margin 10％
ＲＯＥ

17％

ＲＯＩ

15％
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Goals for 2030

FY2020Results

FY2021Plans

Net Sales

494.1

Operating income

23.2

23.9

100

Net income

19.6

15.4

72

（Operating income margin）(100 million yen)(100 million yen)

（4.7％）(100 million yen)

497.3

FY2030Goals(100 million yen)(100 million yen)

（4.8％）(100 million yen)

1,000(100 million yen)(100 million yen)

（10％）(100 million yen)

ROE

27.9%

17.5％

17%

ROI

11.2％

9.0％

15%

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Strategies by Business Segment
Residential Environment Field
make it natural “A comfortable living environment is linked to
the next generation”

Increase
personnel

Expand area

（Net Sales︓100 million yen)

350

18.2%

17.9%
16.1%

250
200

310

150
100

149

138

0
FY2020ResultFY2021 Plan

Net Sales

19.0%
18.0%
17.0%
16.0%
15.0%
14.0%
13.0%
12.0%
11.0%
10.0%

FY2030
Forecast

Operating income margin

Enhancecustomer services

FY2020Results（Operating income margin）

300

50

Diversity
marketingmethods

FY2021Plans

FY2030)Goals

Net Sales

138

149

310

(100 million yen)(100 million yen)(100 million yen)

Operating
Income252650(100 million yen)(100 million yen)(100 million yen)

18.2%

17.9%

16.1%

Number of
personnel

821

883

1,450

Number of
sites

57

64

125

Operatingincome margin

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Strategies by Business Segment
Residential Environment Field
・Increase personnel
ＨＳ︓676→ 1,150
ＥＳ︓145→300
・Increase the number of stores and expand the sales area
→Nationwide deployment

Open newsites

ＨＳ︓Advance into eastern Japan and improve businesses
in western Japan48→ 100
ＥＳ︓Centered on urban areas and regional core cities
9→ 25
・Diversity marketing methods
Improve the efficiency of sales activities
by increasing the number of affiliatedcorporations and organizations andusing the Internet
Expand the sites network

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Speedydevelopment
through affiliationand M&A
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Strategies by Business Segment
Residential Environment Field
In March 2021, the Cabinet published a new Basic Plan for Residential
Life to provide direction to activate and expand the existing residence
and renovation markets.
••(year)

The average age of demolished houses in Japan is less than a half the age of demolishedhouses in foreign countries.
Existing houses are approx. 14.5% of all housing sales (2018), which is roughly one sixth or
one fifth of what it is in the Western countries.
25（Trillion yen）

International comparison of the average age of demolished houses

20
15
10
5
Japan

(1998→2003)(2003→2008)(2008→2013)

US

UK(1993-1998)

0

SourceJapan: Ministry of Internal Affairs and Communications, "Housing and Land Survey 1993, 1998, 2003, 2008, and 2013"(Data: 2003 and 2009)
US：U.S.Census Bureau「American Housing Survey 2003,2009」 （data：2003 ,2009） http://www.census.gov/
UK(England) ： Communities and Local Government 「 2001/02 , 2007/08 Survey of English Housing 」 （ data ： 2001,2007 ）http://www.communities.gov.uk/
Based on the above, estimated by the Ministry of Land, Infrastructure, Transport and Tourism
From materials of the subcommittee on formation of good housing stock to activate existing houses distribution market and enhancement of
既存住宅流通市場活性化のための優良な住宅ストックの形成及び消費者保護の充実に関する⼩委員会
資料より
consumerprotection

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11

11.5

7

7

4

4.5

2013

2018

14

2030

Long-Term
VisionExisting and Sold

Renovation

Total

From performance indicators in the Basic Plan for
Residential Life for 2021/3

7Strategies by Business Segment
Residential Environment Field
For both detached houses and condominiums, the goal is to build a system that enables us to make the optimalcomprehensive proposal tailored to each customer's/property's lifecycle and conditions, leveraging our business model that
regularly checks the condition of properties.
Build the system through M&A activities, business affiliations and the Company's own management resources.

【Example of Detached house】
5 years

Foundation/structure

Existing
priority
areas

External
wall

20 yearsInterior/bathroom/kitchen

25 years

30 years〜

Confirmation of deterioration overtime (repair if necessary)
Painting

Painting
Growthexpansion
areas

Roof

15 years

Repair/paintingReroofing

Partial repair/replacement

Provide good stock to theexisting housing
distribution market

Anti-termite
treatment

10 years

Forecasting that the need for additional performance and value will increase, in addition
to needs for preservation and maintenanceHygienic
environment

Energy-saving
performance

Disasterresilience
performance

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Barrier-free8Strategies by Business Segment
Energy Field
make it common “Energy with low environmental impact”

Increasing need forrenewable energy（Net Sales︓100 million yen)

500
450
400
350
300
250
200
150
100
50
0

（Operating income margin）

9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%

7.8%

450

3.0%

176

184

FY2020Resul

FY2021 Plan

Net Sales

Maintenance

Cost of photovoltaics
and storage batteries
falling

FY2030
Forecast

Reuse/recycle
Technology
development
FY2020Results

FY2021Plans

FY2030Goals

Net Sales

176

184

450

(100 million yen)(100 million yen)(100 million yen)

Operating
Income-3(100 million yen)5(100 million yen)35(100 million yen)

―

3.0％

7.8％

55MW

47MW

200MW

Operating
Income Margin

Solar
installation
capacity

Operating income margin

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Strategies by Business Segment
Energy Field【Review of power composition ratio】
10
8
6

14～16
8
20～22

76

28～30
8
20～22
1

56

Renewable energy
Hydroelectric
Nuclear41

Hydrogen/ammonia

Results

Conventional

Revised values

plan
FY2019Thermal

FY2030Source: Prepared by the Company based on information in the May 15, 2021 morning edition of the Yomiuri Shimbun【Reviewing the cost of photovoltaics】
Results

Forecast

Housing PV system (<10kW)

Price for each PV system (1000 yen/kw, or yen)

Need for renewable energy is rising, onboth the supply and demand side
Supply side
• In its review of its Basic Energy Plan,
the government projected that thepercentage of power fromrenewable energy will increase.
• Focusing on 2030, photovoltaics is
promising in terms of the speed ofrealization
Demand side
• Increasing opportunities to selectrenewable energy as the source ofenergy to achieve RE100, ESG, andother goals.
Reduce costs to facilitate the introductionof photovoltaics, storage batteries, and thelike.
• The cost of privately generated
electricity will be lower than the cost ofpurchased electricity

Small PV system(10~50kW)
Medium-sided
PV system(50~1000kW)
Large PV system(≧1mW)

Results

Fiscal Year

Source: RTS Corporation's Forecasting PV installed capacity in Japan toward FY2030/205

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Strategies by Business Segment
Energy Field
The Company will build systems that are able to support photovoltaic systems in every administrative area, including
maintenance, the reuse and recycling of power plant facilities and components as well as conventionally managed
manufacturing and installation to ensure that photovoltaic generation is a permanent source of energy.

Flow of our conventional main services

Strengthen initiatives after the commencementof operations
Facility addition(storage batteries)

Development andmanufacturing

Sales

Constructs

Facility operation

・Electricity
purchase, Retail
・VPP

Maintenance・Warranty systems
・Remote monitoring
・Others, List of paid
maintenance services

R&D for new initiatives

Electricity
trading・Retail・non-fossil value
trading
・ＰＰＡ,others etc

Reuse/recycle

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Strategies by Business Segment
Resource circulation
make it common “Recycling resources without abandoning
them”
Increase thesophistication of sortingand selection

Expand inlets（Net Sales︓100 million yen)

FY2020Results（Operating Income Margin）

30.0%

250

Diversify outlets

200

17.7%

Net Sales

162

163

240

(100 million yen)(100 million yen)(100 million yen)

20.0%

Operating
Income362960(100 million yen)(100 million yen)(100 million yen)

Operating
Income

22.5％

17.7％

25.0％

Acceptancevolume(Plastic)

266thousand t

270thousand t

350thousand t

Acceptancevolume(Organic Waste
Water)

95thousand t

94thousand t

330thousand t

150

240

15.0%

100

10.0%

163

162
50

5.0%

0

0.0%
FY2020ResultFY2021 Plan

Net Sales

FY2030
Forecasts
Op. Income Margin

FY2030
Goals

25.0%

25.0%
22.5%

FY2021
Plans

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Strategies by Business Segment
Resource circulation【Waste plastics】• Increase the acceptance volume and types (inlets) by diversifying the uses of recycledmaterials (outlets)• Diversify the outlets for collected wastes (thermal, chemical, and material) Adapt to the diversification of recycling methods, including through affiliations with other companies• Development of selection methods suitable for recycling methods＜Inlets＞＜Outlets＞

Waste plastics market

Thermal Recycle（Sanix Energy TomakomaiPower Station）

Existing
Increase acceptancevolume and types

New saleschannelsNew
acceptanceMaterial Recycle

Current
acceptance
Increase thesophistication ofsorting and selection

Affiliations andcooperative
relationships

Chemical Recycle
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Strategies by Business Segment
Resource circulation【Organic waste liquid treatment】• Expand the range of waste to be collected by diversifying the uses for recycled waste• Develop technologies to separate sludge and oil generated during the treatment process andconvert them to fuel• Focus on the business moves to fuel production

Conventional
main
process

Oil content separation（Recycle）

Dewatered sludge(recycling)

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Future mainprocess

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ESG goal and measures

Ｅ（Environment）• Goal for 2030: Reduction of CO2 emission to 50% of 2020 emissions• Facilitate the installation of photovoltaic power generation equipment
at Company facilities

Ｓ（Social）• Serious occupational accidents and fatal accidents: 0• Improvement of internal safety management system

Ｇ（Governance）• Serious violations of laws and regulations: 0• Construct an internal system that complies with the
new governance code
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For 2050
SANIX 2030長期構想

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Material

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Environmental change in Japan and abroad
expected until 2030
＜Global economic trends＞＜Japanese economic trends＞

 Intensifying global competition surrounding the fourthindustrial revolution
 It is estimated that 35% of the workforce of the United Kingdom and 47% of theworkforce of the United States will be replaced by AI and robots.

 Global population migrations, competition to acquire humanresources, and aging
 Demographic burdens will occur in six of the ten ASEAN countries before 2030.

 Realization of Society 5.0 will significantly impact the economy.
 If reforms addressing the fourth industrial revolution are not implemented, thenumber of employees is estimated to decrease by 7.35 million by FY2030.

 Active exchange with many foreign human resources The number of tourists visiting Asia is estimated to double from 2015 to 2030.

 Population decrease and aging
 The population that are 75 years old or older will increase by about 40% by2030, and then gradually decrease.

 Change of the global economic center China and India's percentage of the global GDP: 22% (2010) to 34% (2030)

 Gigantic middle-class market will appear in Asia.
 Estimate of the upper and middle-class population in emerging Asian countries:
1.9 billion (2014) to 3.4 billion (2030)

 Increasing demand for resources and energy Global population will increase to 8.5 billion by 2030.

 Increase in the amount of decrepit or idle infrastructure andhouses Increase in the amount of decrepit infrastructure (In 2033, about 50% of tunnels
and 64% of river management facilities will be 50 years old or older.) The percentage of vacant houses is forecast to be 30.2% in 2033.

 The younger generations will lead a vigorous society.

 Long-term significant reduction of greenhouse gas emissions
 Advanced nations will achieve net zero greenhouse gas emissions by 2050.

 Threats to cyber security

 Millennials, digital natives that grew up in a time after the ubiquity of the internet
and smartphones was established, will become the core of the working-age
population.

 Expansion of a mutually assisting society Concerns about looming anti-globalization and protectionism

Source: Prepared based on the Outlook for 2030 and Reform Task-force Report published by the
Cabinet Office Council on Economic and Fiscal Policy's Expert Committee in January 2017

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Residential Environment Field
Present Status and Global Comparison of Existing House Market
 The percentage of sales of existing houses remained at just 14.5% of all house sales (existing and sold + newly built andunder construction), which is roughly one sixth or one fifth of what it is in Western countries (2018).

Trends in sales of existing houses

Global comparison of sales of existinghouses(1,000units)(10,000 units)

Japan(18’)

US(18’)

UK(18’)

France(18’)※OnlyofEngland

Number ofexisting
houses soldNumbernewly built andunderconstruction
housesExisting/All (existing +newly built) transactions(Information) Japan: MIC's Housing and Land Survey for 2018 and MLIT's Statistics on Housing Starts (2018)1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

US
(years)Number of existing houses soldUK

Number of newly built and under construction houses
FranceSource: Housing and Land Survey (MIC) and Statistics of Housing Starts (MLIT)(Note) Existing house sales for 1998, 2003, 2008, 2013, and 2018 were calculated by annualizing the volume from January to
September

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Note) U.K.: The number of existing house transactions is the sum of the quarterly numbers of house sold at a price of 40,000
pounds or more on a calendar year basis

19Residential Environment Field
Present Status and Global Comparison of the Housing Renovation Market
 The size of the housing renovation market is estimated to be about 6.9 trillion yen (2018)
 The percentage of housing investment in Japan that is for renovation is 26.7%, which is extremely
small compared to Western countries
Size of the housing renovation market (estimated)(Trillion yen)Equipment repair andmaintenance costs

Global comparison of the percentage of housing
investment that is for renovation
Expansion and reconstruction
costs(Billion yen)

Renovation costs in a
broad sense

Japan
Investment for
new housing

Source: Estimate by the Center for Housing Renovation and Dispute Settlement Support
Note1:The estimate does not include large repairs of condominiums and other renovations of common areas
or renovation and exterior construction such as the exteriors of rental housing by the owners
Note2: "Renovation in a broad sense" was calculated by adding the cost of expansions accompanied by anincrease in the number of units and reconstruction, and costs for the purchase of home-use durable
consumer goods and interior goods relating to renovation

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UKFranceInvestment forrenovation

Germany
Percentage ofinvestment forrenovation

Source: Japan (2015): Estimated value by National Accounts(Cabinet Office) and the Center for Housing Renovation and
Dispute Settlement Support
U.K., France, and Germany (2012): Euroconstruct data20

Residential Environment Field
Housing Life-related Industries
 Housing life-related industries are expected to be a new growth industry responding to a wide range of household needs.
Housing life-related support services

Housing asset management- Using quality housing assets -- Comprehensive
individuals' lives Housing industry

Housing life-related business〇Inspection and warranty
・Inspection
・Defect insurance
・Housing history information〇Expert consultation/support
・End of life planning in terms of
housing
・DIY support〇Vacant house management
・Patrol and management
・Treatment of discarded items
left behind〇Use of existing houses
・Use by sharing services
・ Diverted use of existinghouses〇Community
・Community asset management〇Newly built houses
・Supply of newly built
houses〇Distribution
・Distributionof existing houses〇Renovation
・Renovation〇Management
・Condominium management

・Rental housing management

Next-generation housing - Evolution of houses〇Housing with anti-disaster facilities
・Disaster-resilient housing〇Energy-saving houses
・ZEH
・Energy management system
・Infrastructure free unit
〇Smart houses
・IoT houses

Finance/insurance〇Finance〇Insurance

・Housing loans
Renovation loans
Integrated renovation loans
Reverse mortgage

・Residential defect insurance・ Fire insurance/ ・ Earthquake
insurance〇Debt insurance
・Guarantee of housing loan debt
・Guarantee of rent debt

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supportfamiliar

Housinglife-related industries〇Medical/nursing/welfare
・ Observation
andsafetyconfirmation services
・Supporting people's lives
・ Home medical care/nursing,and remote medical care・End of life planning〇Childcare/education
・Child raising
・Education/learning〇Crime prevention/security
・Home security
・Devices/sensors〇Livelihood support
・Housekeeping support
・Shopping support
・Meals・Home delivery
・Transportation support
・Storage/safekeeping〇Hobbies/culture
・Lifestyle support housing
・Leisure/fitness〇Work・Working from home21

to

Energy Field
History of Energy Policy
Basic Energy Plan and energy mix

June 2002
April 2014

Basic Act on Energy
PolicyOctober 2003

First Basic Energy Plan

March

2007

Second Basic Energy Plan

June

2010

Third Basic Energy Plan

Fourth Basic Energy Plan
〇Deliberated by the Advisory Committee on Natural Resources and Energy, before being approved by
the Cabinet〇Nuclear power plants: Reduce as much as possible/Restart operation with the highest priority on
safety, Renewable energy: Increase (over 20%)
〇Examine every three years (Review as needed)

July 2015

Outlook for long-term energy demand (energy mix)
〇Deliberated by the Advisory Committee on Natural Resources and Energy, before being approved by
the Minister of Economy, Trade and Industry〇Nuclear power plants: 20-22% (Before the Great East Japan Earthquake: 30%) Renewable energy:
22-24% (Double the present volume)〇Review in accordance with deliberations on the Basic Energy Plan

July 2018

Fifth Basic Energy Plan
〇Plan for 2030 and direction for 2050
〇Absolutely achieve the targeted energy mix〇Determinedly proceed with energy conversion and decarbonization

2021 Formulationof the sixth Basic Energy Plan (scheduled)
2021年
第六次エネルギー基本計画策定（予定）
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Energy Field
PV System Market Forecast by Use
 From 2022 onward, when 10 years will have passed since the beginning of FIT, the warranty periods of power generationequipment set by manufacturers will expire, so it is expected that demand for replacement equipment and maintenance will
increase.
 From 2032 onward when 20 years will have passed, the FIT purchase period will end, and it is expected that demand for
replacement and module replacement will increase, and consequently the module reuse/recycling business will begin in
earnest.
12,000（ＭＷ）

Increasing demand for replacement equipment andmaintenance

10,000

Reuse/recycling fully
in progress

8,000
6,000
4,000
2,000
0

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Results

Forecasts

For housing

On-roof installation

On-ground installation (low pressure)On-ground installation (high pressure)

Others
Source: Prepared by the company based on the RTS Corporation's Forecasting PV Installed Capacity in Japan toward FY2030/2050 (September 2020)

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Resource circulation
Wastes Discharge Status in Japan (Industrial Waste)
Industrial waste discharge volume and treatment status

Recycled
volume（Million tons）

ReducedvolumeFinally disposedvolumeTreatment status
Treatment status
Finally
volumeReducedvolumedisposed

Treatment
volume384 million
tons

Recycled
volumeSource: Ministry of the Environment's Discharge and Treatment of Industrial Waste (results in 2017)
Breakdown of waste
Waste plastics

Wood debris
Metal scrap
Glass,
concreteearthenware scrap

MiningFood
manufacturing

Waste
oil
Other industrial wastes

and

Other
industries

Ceramic industry/soiland stone product manufacturing

Tailings

Electricity/gas/heatsupply/water

ChemicalSoot anddust

DebrisSludgePer
type
Livestockexcretion

Steel

Pulp/paper/paper
processed
product
manufacturing

By
Industry
Construction
Agriculture/forestry Volume of industrial waste annually discharged inJapan has been around 400 million tons in recent
years.
 By type, sludge amount is over 40% of all waste,followed by livestock excretion and debris, andthese three types are about 80% of all waste.
Waste plastics are 1.7% of all waste.
 Breakdown of treatment: Recycled volume is52.2%, more than half, followed by reduced
volume which is 45.3% and finally disposedvolume is 2.5％

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Resource circulation
What Is the Recycling-based Society that Japan Aims to Achieve (at Present)

Material prepared by the Company based on materials submitted to the second meeting of the
Circular Economy and Resource Circulation for Plastics Finance Study Group held on June 24, 2020
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Disclaimer
This material contains certain forward-looking statements. Such forward-looking statements are not intended to provide
guarantees of our future performance and are based on certain assumptions and management’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 the forward-looking
statements in this material:changes in economic changes of the Feed-in-Tariff (FIT) scheme for renewable energy and changes of the utility
company’s policy for installation of renewable energy, competition with other manufacturers, 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.

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