Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

November 12, 2021

Consolidated Financial Results
for the Six Months Ended September 30, 2021
(Under Japanese GAAP)
Company name: SANIX INCORPORATED
Listing:
Tokyo Stock Exchange / Fukuoka Stock Exchange
Securities code: 4651
URL:
https://sanix.jp/lang_en/
Representative: Hiroshi Munemasa, President and Representative Director
Inquiries:
Hiroshi Soga, Executive officer, Division manager of Corporate Planning Division
Telephone:+81-92-436-8882
Scheduled date to file quarterly securities report:
November 15, 2021
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
Yes
Holding of quarterly financial results briefing:
Yes (for Institutional investor)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the Six months ended September 30, 2021 (from April 1,
2021 to September 30, 2021)(1) Consolidated operating results (cumulative)
Net sales
Six months ended
September 30,
2021
September 30,
2020(Percentages indicate year-on-year changes.)

Operating Income

Profit attributable toowners of parent

Ordinary Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

23,145(3.4)

589(64.6)

490(68.6)

132(90.6)

23,947

(2.4)

1,664

7.3

1,562

9.3

1,410

23.7

Note: Comprehensive income For the Six months ended September 30, 2021: ¥146 million[(89.7)%]For the Six months ended September 30, 2020:¥ 1,425 million [31.4%]
Basic earnings
per share
Six months ended
September 30,
2021
September 30,
2020

Diluted earnings
per share
Yen

Yen

2.76

-

29.51

-

Note: From the beginning of the first quarter of fiscal year ending March 31, 2022, the Company began adopting the AccountingStandard for Revenue Recognition (ASBJ Statement No. 29. March 31, 2020), etc. The figures for the second quarter of the fiscal year
ending March 31, 2022 are the figures after the application of the relevant accounting standards.

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

September 30,
2021

34,235

8,238

24.0

171.82

March 31, 2021

32,940

8,097

24.5

168.84

Reference: Equity
As of September 30, 2021:
As of March 31, 2021:%

Net assets
per share
Yen¥8,213 million¥8,071 million

Note: From the beginning of the first quarter of fiscal year ending March 31, 2022, the Company began adopting the AccountingStandard for Revenue Recognition (ASBJ Statement No. 29. March 31, 2020), etc. The figures for the second quarter of the fiscal year
ending March 31, 2022 are the figures after the application of the relevant accounting standards.

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarterend

Third quarter-end

Yen

Yen

Yen

Yen

Yen

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Fiscal year ended
March 31, 2021
Fiscal year ending
March 31, 2022

Fiscal year-end

Total

0.00

Fiscal year ending
March 31, 2022
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated financial forecasts for the fiscal year ended March 31, 2022(from April 1, 2021 toMarch 31, 2022)
Net sales

Full Year

Operating Income

Ordinary Income

Profit attributableto owners ofparentMillions ofYen%Millions ofYen%Millions ofYen%Millions ofYen%

50,3181.8

1,827(21.4)

1,621(22.5)

819(58.3)

Basic earnings
per share
Yen

17.15

Note
1.Revision from the most recently announced forecast of consolidated business results: Yes
2.From the beginning of the first quarter of fiscal year ending March 31, 2022, the Company began adopting the
Accounting Standard for Revenue Recognition (ASBJ Statement No. 29. March 31, 2020), etc.
The figures for the first quarter of the fiscal year ending March 31, 2022 are the figures after the application of therelevant accounting standards.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in
the change in scope of consolidation): None
Newly included: - companies (Company name)
Excluded:- companies (Company name)(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial
statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
Note :For details, please see 2. Quarterly Consolidated Financial Statements and Main Notes to theStatements (3) Notes on Consolidated Financial Statements (Changes in Accounting Policies) on page
9 of the attachment.
(4) Number of issued shares (common shares)
(i)

(ii)

Total number of issued shares at the end of the period (including treasury shares)
As of September 30,2021

48,919,396 shares

As of March 31,2021

48,919,396 shares

Number of treasury shares at the end of the period
As of September 30,2021

1,114,838 shares

As of March 31,2021

1,114,693 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the
fiscal year)
Six months ended September 30, 2021

47,804,647 shares

Six months ended September 30, 2020

47,804,939 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
The forward-looking statements, including results forecasts, included in this material are based on the information that
the Company has obtained and certain assumptions that the Company considers reasonable. Actual results may differ
significantly for a range of factors. The assumptions for the results forecasts and cautions in the use of the forecasts
are described in 1. Qualitative Information for the Six months ended September 30, 2021, (3) Information on the Future
Outlook, Including the Forecasts of Consolidated Business Results on page 5 of the Attachment

Index of the attachment
1. Qualitative Information for the Six months ended September 30, 2021 ...............
(1) Information of Consolidated Business Results .............................................................................
(2) Information of Consolidated Financial Position ............................................................................

225(3) Information on the Future Outlook,
Including the Forecasts of Consolidated Business Results ........................................................

6

2. Quarterly Consolidated Financial Statements and the Primary Notes for the Sixmonths ended September 30, 2021 ...........................................................................................

7(1) Quarterly Consolidated Balance Sheets ........................................................................................

7(2) Quarterly Consolidated Statements of Income and Comprehensive Income ..........................

9

Quarterly Consolidated Statements of Income
Quarterly Consolidated Statements of Comprehensive Income(3) Quarterly Consolidated Statements of Cash Flows .....................................................................

11(4) Notes regarding the Quarterly Consolidated Financial Statements ..........................................

13

Notes on matters related to going concern assumption ........................................................

13

Notes to Remarkable Changes in the amount of Shareholders’ Equity ..............................

13

Changes in accounting policies ................................................................................................

14

Segment Information, etc. ........................................................................................................

16

3. Others ....................................................................................................................................................

19

Consolidated Net Sales by Division ................................................................................................

19

2

1. Qualitative Information for the Six months ended September 30, 2021
(1) Information of Consolidated Business Results
In the first half under review (April 1, 2021 to September 30, 2021), the outlook for theJapanese economy remained uncertain with the continuation of a state of emergency in someregions due to the spread of COVID-19, even though signs of recovery were observed incertain businesses as a result of measures taken for the incremental resumption of economic
activities, including the promotion of vaccinations. In this situation, SANIX INCORPORATED
and its consolidated subsidiaries (hereinafter the “Group”) continued their respective
operations, prioritizing prevention of the infection’s spread.
In May 2021, the Group formulated the SANIX Long-Term Vision 2030 to clarify its direction
toward 2030 and its goals to achieve a carbon-neutral society and a recycling-based
economy. Under the corporate philosophy, "A comfortable environment for the next
generation," we will continue our efforts to create a sustainable society.
Net sales for the Home Sanitation (HS) Division and the Establishment Sanitation (ES)Division increased firmly year on year. However, net sales for the Solar Engineering (SE)Division declined year on year, reflecting a smaller number of photovoltaic systeminstallations under the effects of the Feed-in Tariff (FIT) System revision in the solar electric
power systems business. Net sales for the Environmental Resources Development (ERD)
Division also decreased given the effects of accounting standard changes, in addition to thesuspension of SANIX ENERGY's Tomakomai power plant's operation in April for biennial
legal inspections. As a result, the Group's consolidated net sales for the first half under review
came to ¥23,145 million (down 3.4% year on year).
Consolidated operating income decreased 64.6% year on year, to ¥589 million, attributable tothe effects of the decline in net sales for the SE Division and repair expenses posted inconnection with the legal inspections of Tomakomai power plant in the ERD Division.
Consolidated ordinary income fell 68.6% year on year, to ¥490 million. Profit attributable toowners of parent plunged 90.6% year on year, to ¥132 million.
The Company began applying the Accounting Standard for Revenue Recognition (ASBJ
Statement No. 29. March 31, 2020), etc. from the first quarter of the current fiscal year.
Year-on-year increases (decreases) and percentage changes from the results for the first halfof the previous fiscal year based on the previous accounting method are stated to explain
consolidated business results. For details, please see 2. Quarterly Consolidated Financial
Statements and Main Notes to the Statements (4) Notes on Consolidated Financial
Statements (Changes in Accounting Policies).
Consolidated results of individual divisions for the first half were as follows:a. SE (Solar Engineering) Division
In the SE Division, net sales for photovoltaic systems decreased 28.5% year on year,

3

reflecting a fall in installations qualified for the FIT system under the effects of a smaller
number of investment projects attributable to the FIT system revision. As a result, net sales inthis segment decreased to ¥3,828 million (down 29.1% year on year).
The segment posted an operating loss of ¥294 million (operating income of ¥233 million
posted in the same period of the previous fiscal year) due to the significant impact of thedecrease in net sales.
b. HS (Home Sanitation) Division
The HS Division refrained from new sales visits in areas where a state of emergency had
been declared and prioritized measures to prevent the spread of COVID-19. However, inother areas, sales activities were conducted as usual while taking thorough preventive
measures. Termite extermination services increased 3.2% year on year, and the constructionof underfloor/attic ventilation systems increased 9.7% year on year, and basic repair work andhousing reinforcement construction increased 23.7% year on year. As a result, net sales forthe segment totaled ¥6,487 million (up 10.2% year on year).
Operating income for the segment amounted to ¥1,394 million (up 19.3% year on year) due toan increase of net sales and improvements in the efficiency of installation offsetting increased
personnel and other expenses caused by the expansion of the workforce.
c. ES (Establishment Sanitation) Division
The ES Division improved relationships with building and condominium owners and partnercompanies, including management companies, by expanding business through an active
increase of personnel and the opening of a new sales office. Net sales for building water
proofing work decreased 0.8% year on year. However, net sales for the installation of theCompany's main anti-rust equipment (product name: Daelman Shock) increased 14.1% year
on year. Net sales for water supply and drainage repairs also rose 13.8％ year on year. As aresult, net sales for the segment totaled ¥1,264 million (up 11.7% year on year).
Operating income for the segment amounted to ¥121 million (up 1.8% year on year) with theeffects of the net sales increase offsetting a rise in fixed costs mainly caused by the
expansion of the workforce.
d. ERD(Environmental Resources Development) Division
In the ERD Division, net sales for organic waste water treatment and final disposal increased 9.6% and10.8% year on year, respectively, reflecting growth in the volume of waste accepted. Meanwhile, net sales
for plastic fuels decreased 0.8% year on year in spite of an increase in the volume of such fuels accepted,
the result of a drop in unit disposal cost. Net sales also declined 10.2% year on year for power plants, owing
to the suspension of the operation of SANIX ENERGY's Tomakomai power plant in April for biennial legal
inspections. As a result, net sales in this segment decreased to ¥8,194 million (down 1.2% year on year).
Operating income for the segment amounted to ¥1,207 million (down 38.9% year on year) reflecting lower
sales due to the legally required inspection of the Tomakomai power plant and the recording of repair
expenses.

4e. EB(Energy Business) Division
In the Energy Business Division, retail sales of electricity increased due to an increase in thenumber of contracts for the new electric power business. Meanwhile, in the current year we
shifted the Tomakomai power plant to direct wholesale sales to external customers, notthrough the PPS(Power Producer and Supplier) business. In addition, we changed to amethod recognizing revenue on a net basis for some transactions associated with the
adoption of the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29.
March 31, 2020), etc. As a result, the PPS business was down 24.8% year on year.
Additionally, the third party-owned photovoltaic power generation model for detached houses
that the Company is promoting in collaboration with other companies increased 7.7% year on
year. As a result, net sales in this segment decreased to ¥3,386 million (down 23.1% year onyear).
The operating loss for the segment came to ¥124 million (compared with an operating loss of¥33 million posted for the same period of the previous fiscal year), reflecting cost increases
due to a rise in the unit cost of power procurement from electric power markets and others in
the PPS business and growth in expenses associated with a personnel increase aimed at
expanding a business based on a third party-owned photovoltaic power generation model.

5(2) Information of Consolidated Financial Positiona. Information on the status of Assets, of Liabilities, and of Net Assets
Total assets at the end of the first half under review amounted to ¥34,235 million, an increaseof ¥1,295 million from the end of the previous fiscal year. This result chiefly reflected anincrease in investments and other assets of ¥977 million due to a rise in long-term prepaid
expenses caused by the application of the Accounting Standard for Revenue Recognition(ASBJ Statement No. 29. March 31, 2020), etc., in addition to growth in machinery, equipment
and vehicles of ¥522 million, despite a decrease in cash and deposits of ¥408 million.
Total liabilities stood at ¥25,996 million, an increase of ¥1,153 million from the end of theprevious fiscal year. This result was largely attributable to an increase in other current liabilitiesof ¥1,193 million, reflecting growths in accounts payable of ¥457 million, bonds payable of¥300 million, income taxes payable of ¥290 million, and contract liabilities and the like throughthe application of the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29.
March 31, 2020), etc., despite a decrease in notes and accounts payable-trade of ¥1,291
million.
Net assets totaled ¥8,238 million, a rise of ¥141 million from the end of the previous
consolidated fiscal year. The key contributions to the increase included the posting of net
income attributable to the owners of the parent company of ¥132 million.
Consequently, the capital-to-asset ratio came to 24.0% at the end of the first half under review,compared with 24.5% at the end of the previous fiscal year.

b. Information on Consolidated Cash Flows
Cash and cash equivalents at the end of the first half under review totaled ¥4,496 million, adecrease of ¥264 million from the end of the previous fiscal year, attributable to net cash used
in investing activities of ¥1,161 million, despite net cash provided by operating activities of¥238 million and net cash provided by financing activities of ¥650 million.
The conditions of respective cash flows in the first half under review and their main causes are
as described below.
(Net Cash Provided by Operating Activities)
Net cash provided by operating activities was ¥238 million (compared with net cash of ¥619
million such activities provided in the same period of the previous fiscal year). The result was
mainly due to income before income taxes of ¥490 million, depreciation and amortization of¥630 million posted as a non-cash expenditure item, and an increase in accounts payable of¥399 million, which offset a drop in trade payable of ¥1,375 million.

6(Net Cash Provided by Investment Activities)
Net cash used in investing activities was ¥1,161 million (compared with net cash of ¥1,318
million used in such activities in the same period of the previous fiscal year). The result
primarily reflected the payment of ¥1,243 million for the purchase of property, plant andequipment.
(Net Cash Provided by Financing Activities)
Net cash provided by financing activities was ¥650 million (compared with net cash of ¥424
million used in such activities in the same period of the previous fiscal year). Major causes forthe result included income of ¥1,000 million from bond issuance, which offset an expenditureof ¥500 million for bond redemption.

(3) Information on the Future Outlook, Including the Forecasts of Consolidated BusinessResults
Regarding consolidated financial forecasts, the Company expects photovoltaic business costs
to rise in the second half due to continued unstable materials procurement conditions, suchas a global semiconductors shortage and steep rises in the prices of raw materials related tophotovoltaic generation, in addition to the effects produced by the downturn of net sales for
the SE Division in the first half, despite a growing social opportunity for decarbonization
through renewable energy introduction. In the PPS business, power market (Japan ElectricPower Exchange) prices also began rising in early October. Further price jumps are predicted
to push up power procurement cost in the period through winter. Based on those predictions,the Company revised consolidated financial forecasts for the fiscal year ending March 31,
2022.
Refer to the following table for the details of the revised forecasts.
The forecast of Consolidated Business Results for the full fiscal year ending March 31, 2022
(From April 1, 2021 to March 31, 2022)

Previous Forecast
Revised Forecast
Changes
Rate of Change
Reference:
Results for FY2020(ended March 31,2021)

Net Sales

Operating
IncomeOrdinary
Income(A)

49,730

2,396

2,166

(In Millions of Yen)
Net Income
Net Income
per Share/¥1,540¥32.22(B)

50,318

1,827

1,621

819

¥17.15

(B－A)

588

(569)

(545)

(720)

－

(％)

1.2

(23.8)(25.2)(46.8)－

49,416

2,325

2,091

1,965

¥41.117

2. Quarterly Consolidated Financial Statements and the Primary Notes for the Sixmonths ended September 30, 2021
(1) Quarterly Consolidated Balance Sheets(In Millions of Yen)

As of

As of

March 31,2021

Sep. 30,2021

Cash and deposits

5,256

4,848

Notes and accounts receivable-trade

5,228

5,269

Merchandise and finished goods

36

40

Work in process-construction

63

61

Raw materials and supplies

2,910

2,836

Other

1,330

1,399

Assets :Current Assets :Allowance for doubtful accounts

(194)

(195)

14,633

14,260

Buildings and structures (net of depreciation)

1,624

1,632

Machinery, Equipment and Vehicles(net of depreciation)

3,002

3,525

Land

8,094

8,331

Total Current Assets
Fixed Assets:
Property, Plant and Equipment :Other (net of depreciation)

2,600

2,533

Total Property, Plant and Equipment

15,322

16,023

Intangible Fixed Assets :

773

763

Investments and Other Assets :

2,210

3,188

Total Fixed Assets

18,306

19,97432,94034,235

Total Assets

8(In Millions of Yen)

As of

As of

March 31,2021

Sep. 30,2021

Notes and accounts payable-trade

4,037

2,746

Short-term loans payable

6,630

6,218

230

337

-

200

Liabilities :Current Liabilities :Current portion of long-term loans payable
Current portion of bonds payable
Accounts payable

2,696

3,153

Accrued income taxes

152

443

Provision for bonuses

256

274

9

8

Allowance for resource-recycling expenses
Other

2,849

4,042

Total Current Liabilities

16,861

17,424

Non-Current Liabilities :Bonds payable
Long-term loans payable

500

800

2,417

2,490

Provision for directors’ retirement benefits

94Provision for disposal site closing expenses

675

695

Liability related to retirement benefits

1,859

1,902

Other

2,519

2,678

Total Non-Current Liabilities
Total Liabilities

7,981

8,572

24,84225,996

14,041

14,041Net Assets :Shareholders’ Equity :Capital stock
Capital surplus

1

1

Retained earnings(4,541)(4,413)

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

Total Shareholders’ Equity

8,020

8,148

55

47

Accumulated other comprehensive income :Valuation difference on available-for-sale securities
Foreign currency translation adjustment

1

20

Adjustment for retirement benefits (cumulative)

(5)

(2)

Total Accumulated other comprehensive income

50

65

Non-controlling Interests

25

24

Total Net Assets

8,097

8,238

Total Liabilities and Assets

32,94034,2359(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(In Millions of Yen)

Six months
From April 1 to September 30
FY2020

FY2021

Net sales

23,947

23,145

Cost of sales

14,81515,005Gross profit

9,132

8,139

Selling, general and administrative expenses

7,467

7,550

Operating income

1,664

589

Interest income

97

Dividends income

1

1Land and house rent revenue

31

31

Other

28

24

Total non-operating income

71

65

103

117

Non-operating income :Non-operating expenses :Interest expenses
Other

69

46

Total non-operating expenses

172

164

Ordinary income (loss)

1,562

490

Income (loss) before income taxes and minority interests

1,562

490

Income taxes-current

93

278

Income taxes-deferred

58

81

Total income taxes

151

359

Net Income (loss)

1,410

131

Net Income (loss) belonging to the non-controlling shareholders

0
1,410

(0)
132

Net income belonging to the shareholders of the parent company

10(Quarterly Consolidated Statements of Comprehensive Income)(In Millions of Yen)

Six months
From April 1 to September 30
FY2020Net Income

FY2020

1,410

131

19

(7)

Foreign currency translation adjustment

1219Retirement benefit adjustment

(17)

2

Other comprehensive income :Valuation difference on available-for-sale securities

Total other comprehensive income
Comprehensive net income

14

14

1,425

146

1,425

147

0

(0)

(Breakdown)Comprehensive income belonging to the shareholders of the parent
company
Comprehensive income belonging to non-controlling shareholders

11(3) Quarterly Consolidated Statements of Cash Flows(In Millions of Yen)

Six months
From April 1 to September 30
FY2020

FY2021Net Cash Provided by (Used in) Operating Activities
Income before income taxes and minority interests

1,562

490

511

630

-

(5)

Increase(Decrease) in Provision for bonuses

(0)

17

Increase (Decrease) in allowance for disposal site closing expenses

21

20

Increase (Decrease) in allowance for resource-recycling expenses

3(0)

Increase (decrease) in provision for retirement benefits

48

46

Increase (decrease) in allowance for doubtful accounts

(4)

(0)

Interest income and dividends income

(10)

(9)

Interest expenses

103

117

Increase (decrease) in notes and accounts receivable-trade

872

(6)

Increase (decrease) in inventories

508

76

Depreciation and amortization
Retirement benefits for directors (and other officers)

Increase (decrease) in other current assets

(71)

(62)

Increase (decrease) in notes and accounts payable-trade(1,268)(1,375)

Accounts payable(1,004)

399

Increase (decrease) in accrued consumption taxes

(48)

(233)

Increase (decrease) in other current liabilities

(161)

169

74

62

1,135

336

10

8

Interest expenses paid

(109)

(116)

Income taxes paid

(431)

(79)

Income taxes refund

15

89

Net cash provided by (used in) operating activities

619

238

Payments into time deposits

(307)

(319)

Proceeds from withdrawal of time deposits

640

472

Purchase of property, plant and equipment(1,436)(1,243)

7

7

(173)

(86)

Other
SubtotalInterest and dividends income received

Net Cash Provided by (Used in) Investing Activities

Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Other
Net cash provided by (used in) investing activities

(48)

8

(1,318)(1,161)

（873)

（412)

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable

180

297

Repayment of long-term loans payable

(158)

(116)

Proceeds from issuance of bonds

-

1,000

Redemption of bonds

-

(500)

Proceeds from sale and leaseback transactions

272

82

Repayments of finance lease obligations

(160)

(242)

Proceeds from sale and installment back

425

748

Repayments of installment payables

(109)

(187)

(1)

(21)

(424)

650

Other
Net cash provided by (used in) financing activities

12
Effect of exchange rate change on cash and cash equivalents

6

8

Net increase (decrease) in cash and cash equivalents(1,116)(264)

Cash and cash equivalents, beginning of the period

5,259

4,760

Cash and cash equivalents, end of the quarter

4,142

4,496

13

(4) Notes regarding the Quarterly Consolidated Financial Statements(Notes to the Assumption of a Going Concern): None(Notes to Remarkable Changes in the amount of Shareholders’ Equity): None14(Changes in accounting policies)(Adoption of the Accounting Standard for Revenue Recognition）
From the beginning of the first quarter of the fiscal year ending March 31, 2022, the Company
began adopting the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29.
March 31, 2020, hereinafter "Revenue Recognition Accounting Standard"), etc. The Company
has decided to recognize revenue at the amount it expects to receive in exchange for thepromised goods or services when control of the goods or services is transferred to thecustomer.
Major changes due to the adoption of the Revenue Recognition Accounting Standard are as
follows:
1. Revenue Recognition from the Satisfaction of Performance Obligations
For some warrantied parts of solar photovoltaic generation systems sales, revenue waspreviously recognized, including revenue from system sales, at the completion of installation.
However, we have changed to a method recognizing revenue over the warranty period.
In addition, regarding retail sales of electricity, revenue was previously recognized based on
the meter reading date (a method of recognizing revenue based on the amount of usage
confirmed by meter readings conducted on days other than the end of each month). However,
we have changed to a method estimating and recording the revenue generated from the dateof meter reading conducted in the closing month to the closing date, in accordance with
Paragraph 103-2 of the "Application Guidance on Revenue Recognition Accounting Standard" (ASBJ Guidance No. 30, March 26, 2021).
2. Recognition of Revenue from Proxy Transactions
For transactions in which the Group's role in the sale to the customer is that of an agent, theGroup previously recognized the total amount of the consideration received from thecustomer as revenue. However, the Group has changed to a method of recognizing revenue
on a net basis deducting the amount paid to third parties from the total amount of theconsideration.
We apply the Revenue Recognition Accounting Standard, etc. in accordance with thetransitional treatment prescribed in the proviso of paragraph 84 of the Revenue Recognition
Accounting Standard. The cumulative effect of retroactively applying the new accounting
policy prior to the beginning of the first quarter of fiscal year ending March 31, 2022 wasadded to or deducted from retained earnings at the beginning of the first quarter of the current
fiscal year, and the new accounting policy has been applied from the beginning balance of thecurrent fiscal year. However, we have applied the method prescribed in Paragraph 86 of the
Revenue Recognition Accounting Standard and have not retrospectively applied the new
accounting policy to contracts in which almost all of the revenue amount was recognized inaccordance with the previous treatment prior to the beginning of the first quarter of the current

15

fiscal year.
As a result, net sales for the first half under review declined ¥682 million, cost of sales
decreased ¥699 million, selling, general and administrative expenses declined ¥5 million.
Operating income, ordinary income and income before income taxes and minority interests
each increased ¥22 million. Retained earnings at the beginning of the current fiscal year
decreased ¥4 million.
In accordance with the transitional treatment prescribed in Paragraph 89-2 of the Revenue
Recognition Accounting Standard, no reclassification has been made to the prior year's
consolidated financial statements to conform to the new presentation. In accordance with thetransitional treatment prescribed in Paragraph 28-15 of the Accounting Standard for Quarterly
Financial Reporting (ASBJ Statement No. 12, March 31, 2020), information on revenues fromcontracts with customers for the first quarter of the previous fiscal year have not been broken
down.
(Application of the Accounting Standard for Fair Value Measurement, etc.)
The Company began applying the Accounting Standard for Fair Value Measurement (ASBJ
Statement No. 30. July 4, 2019), etc. from the first quarter of the current fiscal year.
Accordingly, the Company decided to apply into the future new accounting policies prescribedin the Accounting Standard for Fair Value Measurement, etc., in accordance with transitional
treatment prescribed in Paragraph 19 of the said Accounting Standard and Paragraph 44-2 ofthe Accounting Standard for Financial Instruments (ASBJ Statement No. 10. July 4, 2019).
The application of the new accounting policies has no effect on quarterly consolidated
financial statements.

16(Segment Information, etc.)
Ⅰ Six months ended September 2020 (From April 1, 2020 to September 30, 2020)
Information concerning the Amount of Net Sales and Operating Income (loss) by
Segment(In Millions of Yen)

Segments

Elimination
or Group(note 1)

Consolidated(note 2)

SE

HS

ES

ERD

EB

Total

5,399

5,886

1,132

7,126

4,402

23,947

-

-

-

-

1,169

-

1,169

(1,169)

5,399

5,886

1,132

8,296

4,402

25,117(1,169)23,947

233

1,168

118

1,974

(33)

3,462

(1,798)

1,664

Sales:
Sales to customers
Internal sales among
segments
and transfer accounts
Total
Operating income (loss)

23,947-(note 1)
Negative ¥1,798 million for adjustments of Operating income (loss) represents corporate expenses not allocatedto reportable segments. Corporate expenses are mainly general and administrative expenses note attributable toreportable segments.
(note 2)
Operating income (loss) is adjusted to operating loss of quarterly consolidated statements of income.

17

Ⅱ Six months ended September 2021 (From April 1, 2021 to September 30, 2021)
Information concerning the Amount of Net Sales and Operating Income (loss) by
Segment

SE
Sales
Sales and installationof PV system

Segments
ES
ERD

HS

EB

Elimination or Consolidated
Group (note1)(note 2)

Total

3,753

-

-

-

-

3,753

-

3,753

Wholesale of PV
system

34

-

-

-

-

34

-

34

Termite control
construction

-

1,992

-

-

-

1,992

-

1,992

Under-floor/attic
ventilation system

-

1,668

-

-

-

1,668

-

1,668

Foundation Repair/
Home Reinforcement
System

-

1,045

-

-

-

1,045

-

1,045

Anti-rust equipment
installation

-

-

648

-

-

648

-

648

Water supply anddrainage repair

-

-

326

-

-

326

-

326

Waterproofing andrenovation of buildings

-

-

82

-

-

82

-

82

Plastic fuel

-

-

-

5,106

-

5,106

-

5,106

Power Plant

-

-

-

1,409

-

1,409

-

1,409

Organic Waste liquid
treatment

-

-

-

1,010

-

1,010

-

1,010

Landfill

-

-

-

425

-

425

-

425

Sales of Electricity

-

-

-

-

3,114

3,114

-

3,114

40

1,781

207

241

255

2,525

-

2,525

3,828

6,487

1,264

8,194

3,369

23,145-23,145

3,828

6,487

1,264

8,194

3,369

23,145-23,145

-

-

-

-

17

17

(17)

-

3,828

6,487

1,264

8,194

3,386

23,162(17)

23,145

(294)

1,394

121

1,207

(124)

2,304

(1,714)589

Others
Revenue fromcontracts withcustomers
Sales to customers
Internal sales among
segments and transfer
accounts
Total
Operating income(loss)

18(note 1)
Negative ¥1,714 million for adjustments of Operating income (loss) represents corporate expenses not allocatedto reportable segments. Corporate expenses are mainly general and administrative expenses note attributable toreportable segments.
(note 2)
Operating income (loss) is adjusted to operating loss of quarterly consolidated statements of income.

2.Information on changes in reportable segments
As described in (Changes in Accounting Policies), starting from the beginning of the first quarter of fiscal year
ending March 31, 2022, the Company began adopting the Accounting Standard for Revenue Recognition (ASBJ
Statement No. 29. March 31, 2020), etc. The Company has changed its accounting method for revenue
recognition.
Net sales in the SE Division increased by ¥79 million, net sales in HS Division, ERD Division, and EB Division
decreased by ¥5 million, ¥ 122 million, and ¥633 million respectively for the first quarter under review due to thechange, compared with those under the previous accounting method. The impact on segment income or loss isimmaterial.

19

3. OtherConsolidated Net Sales by Division（In Million of Yen）
From April 1 to September 30
Comparison
Unit
FY2020

FY2021

Item
QTY

AmountQTY

AmountQTY

AmountSales and installation of PV system

kW30,241

5,248

13,791

3,753-16,449-1,495Wholesale of PV system

－

－

98

－

34

－

-63

Others

－

－

51

－

40

－

-10

－

－

5,399

－

3,828

－

-1,570

tsubo

310

1,931

318

1,992

7

61

－

－

1,520

－

1,668

－

147

House

2,071

845

2,516

1,045

445

199

－

－

1,588

－

1,781

－

192

H ome Sa ni ta ti on D i v i s i on Tota l

－

－

5,886

－

6,487

－

601

Anti-rust equipment installation

Piece

519

568

624

648

105

79

Water supply and drainage repair

－

－

286

－

326

－

39

Waterproofing and renovation ofbuildings

－

－

83

－

82

－

-0

Others

－

－

194

－

207

－

13

－

－

1,132

－

1,264

－

132

Plastic fuelｔ

131,048

5,146

138,244

5,106

7,195

-39

Power Plant

－

－

1,570

－

1,409

－

-160

Organic Waste liquid treatmentｔ47,620921

49,622

1,010

2,001

88

Landfill

－

－

384

－

425

－

41

Others

－

－

272

－

241

－

-31

－

－

8,296

－

8,194

－

-101

Sales of Electricity

－

－

4,165

－

3,131

－

-1,034

Others

－

－

236

－

255

－

18

Energ y B us i nes s D i v i s i on

－

－

4,402

－

3,386

－

-1,015Adjustment of intersegment sales－－(1,169)

－

(17)

－

1,152

Total Net Sales－－

23,947－

23,145－-802

Sol a r Eng i neeri ng D i v i s i on Tota l
Termite control construction
Under-floor/attic ventilation system
Foundation Repair/
Home Reinforcement System
OthersEs ta bl i s hment Sa ni ta ti on
D i v i s i on Tota l

Env i ronmenta l R es ources
D ev el opment D i v i s i on Tota l*1,000Note
1.Descriptions are omitted for items that are handled in such a wide range that it is difficult to grasp their quantity.
2.1,000 tsubo is approximately 3,305.785 ㎡.
3.From the beginning of the first quarter of fiscal year ending March 31, 2022, the Company began adopting
the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29. March 31, 2020), etc. The figures
for the first quarter of the fiscal year ending March 31, 2022 are the figures after the application of the relevant
accounting standards.