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.

May 15, 2024

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2024
(Under Japanese GAAP)
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

SANIX INCORPORATEDTokyo Stock Exchange / Fukuoka Stock Exchange
4651
https://sanix.jp/lang_en/
Hiroshi Munemasa, President and Representative Director
Michimasa Masuda, Director, Managing Executive Officer, General manager ofCorporate Planning Division
Telephone:+81-92-284-5072
Scheduled date of annual general meeting of shareholders : June 27, 2024
Scheduled date to commence dividend payments:Scheduled date to file annual securities report: June 27, 2024
Preparation of supplementary material on financial results : Yes
Holding of financial results briefing: Yes (for Institutional investor)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2024 (from April 1, 2023 toMarch 31, 2024)(1) Consolidated operating results (cumulative)
Net sales(Percentages indicate year-on-year changes.)

Operating profit

Profit attributable toowners of parent

Ordinary profit

Fiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

March 31,2024

47,167

1.9

3,744

109.7

3,466

123.3-

2,697

102.5

March 31,2023

46,277

(9.1)

1,785

-

1,552

-

1,332

-

Note: Comprehensive income For the fiscal year ended March 31,2024:
For the fiscal year ended March 31,2023:
Basic earnings
per share¥2,844 million¥1,341 million[112.1%][-%]

Diluted earnings
per share

Return on equity

Ratio of ordinary
profit to total
assetsRatio of operating
profit to net sales

Yen

%

%

%

Fiscal year ended

Yen

March 31,2024

56.43

-

36.1

9.8

7.9

March 31,2023

27.87

-

24.8

4.5

3.9

Reference: Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31,2024: ¥- million
For the fiscal year ended March 31,2023: ¥- million

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

March 31,2024

36,965

8,912

24.1

186.04

March 31,2023

33,586

6,068

18.0

126.51

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodReference: Equity
As of March 31,2024:
As of March 31,2023:%

Yen¥8,893 million¥6,047 million(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31,2024

4,821(1,800)

(678)

6,269

March 31,2023

5,034(1,056)(3,307)3,916

2. Cash dividends
Annual dividends per share

Fiscal year ended
March 31,2023
Fiscal year ended
March 31,2024
Fiscal year ending
March 31,2025(Forecast)

Total cash
dividends(Total)Payout ratio(Consolidated)

Ratio ofdividends to
net assets(Consolidated)

%

%

First
quarterend

Secondquarterend

Third
quarterend

Fiscalyear-end

Yen

Yen

Yen

Yen

Yen

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

Total

Millions of yen-

3. Consolidated financial forecasts for the fiscal year ended March 31, 2025(from April 1, 2024 toMarch 31, 2025)
Net sales

Operating profit

Profit attributableto owners ofparentOrdinary profit

Basic earnings
per share

Millions ofYen%Millions ofYen%Millions ofYen%Millions of
Yen

%

Yen

First Half

22,7260.6

613(58.6)

483(64.0)

366(67.4)

10.10

Full Year46,246

(2.0)

1,715

(54.2)

1,440(58.4)

1,093(59.4)

22.88

* 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) 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 3.Consolidated Financial Statements and Main Notes to theStatements (5) Notes to the Consolidated Financial Statements (Changes in Accounting
Policies) on page 21 of the attachment.
(3) Number of issued shares (common shares)
(i)

(ii)

Total number of issued shares at the end of the period (including treasury shares)
As of March 31,2024

48,919,396 shares

As of March 31,2023

48,919,396 shares

Number of treasury shares at the end of the period
As of March 31,2024

1,115,213 shares

As of March 31,2023

1,114,983 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31,2024

47,804,343 sharesFiscal year ended March 31,2023

47,804,439 shares[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31,2024 (from April 1,2023
to March 31,2024)(1) Non-consolidated operating results
Net sales
Fiscal year ended

Millions of yen

March 31,2024
March 31,2023(Percentages indicate year-on-year changes.)
Operating profit

Ordinary profit

Profit%Millions of yen%

Millions of yen%

Millions of yen%

39,502

(2.7)

1,476

226.0

1,553

167.4

1,326

192.5

40,582(11.1)

453

-

581

-

453

-

Basic earnings
per share

Diluted earnings
per share

Fiscal year ended

Yen

March 31,2024

27.75

-

March 31,2023

9.49

-

Yen

(2) Non-consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

March 31,2024

30,712

2,862

9.3

59.88

March 31,2023

26,556

1,472

5.5

30.79

Reference: Equity
As of March 31,2024:
As of March 31,2023:¥2,862 million¥1,472 million%

Net assets per share
Yen* Financial results reports are exempt from audit 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. Information of BusinessResults & Financial Position for the fiscal year ended March 31, 2024, (4) Information on the Future
Outlook, Including the forecasts of Consolidated Business Results on page 7 of the Attachment.

1. Index of the attachment
1. Information on Business Results & Financial Position for the fiscal year
ended March 31, 2024 ................................................................................................2(1) Information on Consolidated Business Results ............................................................................
2(2) Information on Consolidated Financial Position ............................................................................
4(3) Information on Consolidated Cash Flows ......................................................................................
6(4) Information on the Future Outlook, Including the Forecasts of Consolidated BusinessResults ................................................................................................................................................
7

2. Basic Position regarding the Choice of Accounting Standards ................................11
3. Consolidated Financial Statements and Main Notes to the Statements ...................
12(1) Consolidated Balance Sheets .........................................................................................................
12(2) Consolidated Statements of Income and Comprehensive Income ............................................
14
Consolidated Statements of Income .............................................................................................
14
Consolidated Statements of Comprehensive Income ................................................................
15(3) Consolidated Statements of Changes in Net Assets .............................................................
16(4) Consolidated Statements of Cash Flows .......................................................................................
18(5) Notes to the Consolidated Financial Statements ..........................................................................
20
Notes to the Assumption of a Going Concern .............................................................................
20
Segment Information ...................................................................................................................20
Per-share information ..................................................................................................................24
Significant subsequent events ................................................................................................ 25

4. Supplemental Information .............................................................................................................
27
Consolidated Net Sales by Division.......................................................................................................27

2

1. Information on Business Results & Financial Position for the fiscal year
ended March 31, 2024
(1) Information on Consolidated Business Results
During the fiscal year under review, the Japanese economy continued to recovermoderately, partly reflecting a recovery in inbound tourism-related demand following therecategorization of COVID-19 as a class 5 infectious disease. However, the outlook still
remained uncertain, largely reflecting surging resource and energy prices and rising
raw materials prices linked to a weaker yen, under the unstable international situation.
In this social environment, guided by its corporate philosophy, “Clean andcomfortable environment for the next generation," the Group facilitated the resolution ofsocial issues through its businesses and continued to work to help establish asustainable society in the residential environment, energy and resource circulation
domains.
In terms of net sales, ERD Division sales increased (up 14.3% year on year)
reflecting an increase in this year's electricity sales contract price in power plant sales.
However, PPS (Power Producer and Supplier) Division sales decreased (down 51.7%
year on year) due to the downsizing of the business to avoid risks linked to a rise in thecost of procuring electricity. As a result, the Group's consolidated net sales for the
consolidated fiscal year under review came to ¥47,167 million (up 1.9% year on year).
As for profits, in the ERD Division, profits improved due to an increase in theelectricity sales contract price. As a result, the Group posted operating profit of ¥3,744
million (up 109.7% year on year), ordinary profit of ¥3,466 million (up 123.3% year onyear), and profit attributable to owners of parent of ¥2,697 million (up 102.5% year onyear).
Consolidated results of individual divisions for this fiscal year were as follows:<Residential Environment Area>
a. HS (Home Sanitation) Division
The HS Division continued to strengthen its sales policy with a focus on thedevelopment of new customers as in the previous year while also accelerating
initiatives with an eye toward the enhancement of its customer foundation. As a result,despite a 2.3% decrease in foundation repairs/home reinforcement systems, termite
eradication services increased 5.1% year on year and under-floor/attic ventilation
systems increased 3.8% year on year, which resulted in an increase of 3.6% year on
year of net sales to ¥11,857 million.
Operating profit came to ¥1,716 million (up 28.3% year on year) due to a year on
year increase in sales, as well as the effects of reduced subcontracting construction
costs and fixed costs such as selling, general and administrative expenses.

3

b. ES (Establishment Sanitation) Division
The ES Division has been strengthening its relationships with owners of buildings
and condominiums and affiliates such as property management companies. Net sales
in this segment came to ¥2,700 million (up 4.9% year on year), reflecting a
year-on-year increase of 36.4% in building water supply and drainage repair work, morethan offsetting year-on-year decreases of 10.8% in the installation of the Company's
main anti-rust product (brand name: Daelman Shock) and 12.7% in building
waterproofing repair work.
Operating profit decreased 48.2% year on year to ¥67 million despite an increase insales from the previous fiscal year. This was due to product lines consisting of productswith high cost ratios.
c. SE (Solar Engineering) Division
The SE Division, a business established in the previous fiscal year, focused on thesale of photovoltaic power generation systems developed specifically for detachedhouses, among other products. Although sales of storage batteries and replacement of
power conditioners for existing photovoltaic power generation systems increased fromthe previous fiscal year, the sales level temporarily declined due to the allocation of
personnel to the development of business partners. As a result, net sales in thissegment decreased to ¥1,267 million (down 26.6% year on year).
Operating loss totaled ¥59 million (operating loss of ¥47 million in the previous fiscal
year), reflecting the decline in sales year on year.
<Energy Area>d. PV(Photovoltaic) Division
The PV Division focused mainly on the sale and construction of self-consumption
type photovoltaic power generation systems for corporate use, the provision of the PPA
services to local governments and the sale of photovoltaic power generation systems
with land, as well as replacement of devices and maintenance for existing photovoltaic
power generation systems. Net sales increased 14.7% year on year to ¥9,893 million,
thanks to a steady increase in the number of contracts and the effect of a review ofselling prices in response to rising prices for materials and other items.
Operating profit amounted to ¥294 million due to an increase in net sales from theprevious year (operating profit of ¥22 million in the previous fiscal year).

4

e. PPS (Power Producer and Supplier) Division
The PPS Division has been reducing its business since last year, considering thatmaintaining profit is difficult due to a rise in the cost of electricity procurement. As aresult, net sales in this segment decreased to ¥2,598 million (down 51.7% year onyear).
Operating profit was ¥100 million (down 58.0% year on year). This is partly due to adecrease in sales resulting from business downsizing, in addition to a calming of thewholesale power market, although in the previous year we were able to earn a margin
by selling surplus electricity procured through direct transactions in the wholesale
power market, where the price was higher than the direct procurement price.
<Resource Circulation Area>
f. ERD (Environmental Resources Development) Division
In the ERD Division, final disposal decreased 4.7％ year on year due to curbs on theamount of waste brought in, plastic fuel sales decreased 0.8% year on year,
wastewater recycling rose 3.9% year on year, and power plant sales climbed 70.1%
year on year due to a rise in the unit contract price of electricity sold by the Tomakomai
power plant. As a result, net sales for the segment totaled ¥18,886 million (up 14.3%
year on year).
Operating profit for the segment amounted to ¥4,722 million (up 49.8% year on year),reflecting improved profitability due to the higher unit contract price of the electricity sold,offsetting the recording of repair expenses of legally required inspection of theTomakomai power plant.

(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 ¥36,965
million, an increase of ¥3,379 million from the end of the previous consolidated fiscal
year. Total liabilities stood at ¥28,053 million, an increase of ¥535 million from the endof the previous fiscal year. Net assets totaled ¥8,912 million, a rise of ¥2,843 million
from the end of the previous consolidated fiscal year. As a consequence, theshareholders' equity ratio stood at 24.1%.

5(The status of Assets)
Current assets increased ¥2,527 million compared to the end of the previous year to¥16,211 million (up 18.5% year on year).

This was caused chiefly by an increase in

cash and deposits of ¥1,893 million and an increase in accounts receivable trade of¥560 million.
Non-current assets increased ¥851 million compared to the end of the previous yearto ¥20,753 million (up 4.3% year on year).

The main factors were increases of ¥846

million in construction in progress and ¥431 million in machinery, equipment andvehicles (net), and decreases of ¥209 million in buildings and structures (net) and ¥144
million in deferred tax assets.
(The status of Liabilities)
Current liabilities increased ¥1,628 million compared to the end of the previous yearto ¥18,010 million (up 9.9% year on year). The decrease was primarily attributable toan increase in accounts payable of ¥1,206 million, short-term loans payable of ¥553
million and accrued income taxes of ¥305 million respectively, and a decrease in notes
and accounts payable-trade of ¥494 million.
Non-current liabilities decreased by ¥1,092 million compared to the end of theprevious year to ¥10,042 million (down 9.8% year on year).
The main factors were a decrease of ¥1,364 million in long-term loans payable and a
increase of ¥200 million in bonds payable.
(The status of Net Assets)
Net assets rose by ¥2,843 million compared to the end of the previous year andamounted to ¥8,912 million (up 46.9% year on year). Key contributors to the increase
included the posting of profit attributable to owners of parent of ¥2,697 million.

6(3) Information on Consolidated Cash Flows
Cash and cash equivalents as of the end of the fiscal year under review increased by¥2,352 million compared to the end of the previous year, amounting to ¥6,269 million.
The following is a summary of cash flows and major factors for the fiscal year underreview.
(Net Cash Provided by Operating Activities)
Net cash provided by operating activities was ¥4,821 million (proceeds of ¥5,034
million in the previous year). Main factors were income before income taxes of ¥3,446
million and depreciation expenses of ¥1,654 million as non-cash expenditures.
(Net Cash Provided by Investment Activities)
Net cash used in investing activities was ¥1,800 million (expenditure of ¥1,056 million
in the previous year). This is mainly due to purchases of property, plant and equipmentof ¥2,091 million.
(Net Cash Provided by Financing Activities)
Net cash used in financing activities was ¥678 million (expenditure of ¥3,307 million
in the previous year). The main factors for this include proceeds from sale andinstallment back of ¥1,140 million and a net increase in short-term loans payable of¥553 million, repayment of long-term loans payable of ¥1,372 million, and therepayment of installment payables of ¥775 million.
(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
Interest coverage ratio(Note) Shareholder’s equity ratio:

FY2019FY2020

FY2021

FY2022

FY2023

18.5%

24.5%

13.5%

18.0%

24.1%

42.0%

47.5%

35.5%

40.9%

44.1%

3.04

4.16

-

2.46

2.43

21.61

13.02

-

16.88

19.29

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:
Interest coverage ratio:

Operating cash flow/Interest payment

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.

7

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

(4) Information on the Future Outlook, Including the forecasts of Consolidated
Business Results
Based on our corporate philosophy, “Clean and comfortable environment for the next
generation," the Group will continue its efforts to establish a sustainable society throughnew innovation in the residential environment, resource circulation and energy domains,leveraging the experience it has accumulated in its businesses to date.
As announced in the "Notice of Transition to Holding Company Structure and Change ofTrade Name" released on May 15, 2024, we believe that the transition to a holding
company structure is the best way to respond quickly to any changes in the businessenvironment and achieve sustainable growth. Consequently, we have decided to transition
to a holding company structure in April 2025 (scheduled).
The holding company will specialize in group management functions to develop group
strategies and optimize the allocation of management resources, while the operatingcompanies will focus on their respective businesses and aim to enhance the corporate
value of the Group by conducting flexible and speedy business development in responseto changes in the business environment and business characteristics.
Segment business strategy is as follows.
<Residential Environment Area>(HS Division)
The HS Division will strengthen its business foundations by facilitating thecommunity-oriented development of further enhancing continuous follow up services forexisting customers. It will then boost the number of personnel through recruitment andaggressively open new stores to increase the numbers of new contracts and customers.
In addition to strengthening the sales style of individual visits, the corporate sales
system will be expanded to broaden the scope of sales and respond to diverse needsin the housing environment, as the energy-saving market is expected to revitalize due
to improved insulation performance of houses (windows, insulation materials, etc.).
(ES Division)
The ES Division will expand sales channels for maintenance measures for watersupply and drainage facilities, maintenance of condominiums and other buildings using
the anti-rust equipment installation (brand name: Daelman Shock), its main product, by8

cultivating partners such as management companies, introducing existing partners
through close follow-ups, and increasing opportunities for business talks with realestate owners. We will also promote hygiene management services such as pest
control and hygiene management support in accordance with Hazard Analysis andCritical Control Points (HACCP) for businesses that handle food products.
(SE Division)
The Division will work to expand the use of solar power generation systems andstorage batteries for detached houses which are environmentally friendly, reduce
electricity costs and can be used as power sources during a disaster. The Division will
increase productivity and efficiency and facilitate the reduction of the cost of materials
and components such as modules and power conditioners. In addition, by linking with
the HS Division rather than the SE Division alone, we will change the positioning of thebusiness from the installation of photovoltaic power generation systems developed
specifically for detached houses, among other products to the maintenance andrenovation of detached houses.
<Energy Area>(PV Division)
In its business focused on photovoltaic power generation systems for corporations,the focus has shifted from sales of FIT systems to sales of self-consumption systems.
The Division will work to expand its sales channels for self-consumption photovoltaic
power generation systems that can help companies become carbon neutral, reduce
electricity costs, etc., and strengthen our system for replacing equipment and theafter-sales maintenance of customers' photovoltaic power generation systems. In
addition, the Division will increase productivity and efficiency and facilitate the reductionof parts and materials expenses.
(PPS Division)
The combination of soaring prices on the wholesale electricity market (JEPX) andglobal energy prices made it difficult to ensure the profitability of the retail electricity
business, so we liquidated unprofitable contracts and downsized the business. In
addition to promoting the sale of electricity by effectively utilizing the added value of
non-fossil value electricity from the Tomakomai power plant, we will continue to provide
electricity supply and demand management services in anticipation of thecommercialization of renewable energy introduction models such as self-consumption
and PPA in the sales of photovoltaic power generation system, and energy
management.

9<Resource Circulation Area>(ERD Division)
Regarding the conversion of waste plastic into fuel, the Division has been improving
the quality of plastic fuels and operating its plant more efficiently.
The Division will continue to strive to improve business performance by increasing
acceptance volume while focusing on profitability. We will promote the development ofmaterial recycling under which, in the process of sorting waste plastics, we sort thesuitable plastic materials, process them for recycling in cooperation with partnercompanies.
In addition, not only limited to waste treatment businesses, with sales of thecentralized waste management system, targeting waste generators and waste
collection companies, we will alleviate cumbersome tasks such as contracts,
management forms (manifest slips), and performance reports to local governments,
enabling Scope 3 emissions calculation for waste required for sustainability reporting.
This will lead to continuing business transactions.
In the area of wastewater recycling, we will contribute to the realization of acarbon-neutral society by producing Recycled Oil Bio, an alternative fuel to heavy oil,derived from waste. By promoting the conversion of sludge generated after organic
wastewater recycling into recycled fuel, thereby both reducing industrial waste andrecycling it, aiming to help realize the recycling society.
Furthermore, with the goal of commercializing the solar panel recycling business,
also due to the expectation for the high volume of used solar panels in the 2030's when
the solar FIT purchase period expires, the Group will proceed with the verification ofsolar panel recycling technologies leveraging the knowledge about solar panels it has
accumulated and its strengths of its nationwide industrial waste disposal network.
Financial results forecast for FY2024
As for the forecast of consolidated financial results for the fiscal year ending March
31, 2025, the Group's business performance is expected to achieve net sales of¥46,246 million (down 2.0％ year on year), operating profit of ¥1,715 million (down
54.2％ year on year), ordinary profit of ¥1,440 million (down 58.4％ year on year), andprofit attributable to owners of parent of ¥1,093 million (down 59.4％ year on year).
(in Millions of Yen)
Consolidated financial forecast

FY2023 (Results)

FY2024

Net Sales

46,24647,167

Operating profit

1,715

3,744

Ordinary profit

1,440

3,466

Profit attributable to owners of parent

1,093

2,697

10

The above forecasts have been prepared based on information available as of thedate of the announcement of the financial report. Actual results of operations may differ
from forecasts due to many factors that may arise in the future.
Revisions in the Medium-Term Business Plan (FY2023 to FY2025)
In addition, amid the uncertain business environment which has been affected bysoaring resource and energy prices and rising prices associated with the yen's
depreciation, the Group has formulated the Medium-Term Business Plan (FY2023 to
FY2025) announced in May 15, 2023, as a period for laying the foundation for theachievement of the sustainable growth of its existing businesses.
However, we revised downward the unit price of electricity sales at Tomakomai power
plant in the fiscal year ending March 31, 2025 and beyond, revising the electricity sales
price at Tomakomai power plant due to lower-than-expected electricity market prices,
although we had expected electricity prices to remain high for a prolonged period oftime due to the prolonged rise in energy prices.
In the PV system business for corporate clients in the energy area, demand andinquiries for PV systems have been increasing due to the full-scale efforts for adecarbonized society and soaring electricity costs, but the timing of sales recognition
has been revised due to the prolonged period from order receipt to installation.
Based on these factors, we have decided to revise downward our forecasts for the
fiscal years ending March 31, 2025 and 2026, as shown in the table below.
For details, please refer to the "Notice Concerning Revision of Numerical Targets in
the Medium-Term Management Plan" (released on May 15, 2024).
<Numerical Targets in the Medium-Term Management Plan>(in Billions of Yen)FY2023

FY2024 Plan

FY2025 Plan

Initial plan

Results

Initial plan

Revised plan

Initial plan

Revised plan

Net Sales

48.0

47.1

50.0

46.2

53.0

51.5

Operating profit

3.2

3.7

3.2

1.7

3.0

2.8

EBITDA

4.8

5.3

4.9

3.5

5.0

4.9

ROE

35.0%

36.1%

24.0%

11.6%

16.0%

17.0%

ROIC

14.0%

14.4%

12.0%

6.4%

10.0%

10.0%

Equity ratio

22.0%

24.1%

27.0%

25.4%

30.0%

29.0%

(Note)
1. EBITDA = Operating profit + Depreciation
2.The forecasts above are based on information that the Company has obtained and certain
assumptions that the Company considers reasonable. The Company does not guarantee that theforecasts will be achieved. Actual results may differ materially due to various factors.

11

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 takeproper steps toward the adoption of the International Financial Reporting Standards while giving
due consideration to the circumstances in Japan and other countries.

12

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

As of March 31
FY2022

FY2023

Assets:Current Assets:
Cash and deposits
Notes receivable
Accounts receivable

4,504

6,397

35

36

4,774

5,334

Electronically recorded monetary claims – operating

17

65

Merchandise and finished goods

163

185

Work in process-construction

134

420

Raw materials and supplies

2,901

2,575

Other

1,382

1,301

Allowance for doubtful accounts

(229)

(105)

13,683

16,211

Total current assets
Fixed Assets:
Tangible fixed assets:
Buildings and structures
Less: Accumulated depreciation

11,266

11,448(8,911)(9,303)

2,355

2,145

Machinery, Equipment and vehicles,

14,816

15,437

Less: Accumulated depreciation(10,529)(10,719)

Buildings and structures (net of depreciation)

4,286

4,718

Land

8,209

8,248

Lease assets

1,657

1,710

Less: Accumulated depreciation

(846)

(862)

Lease Assets (net of depreciation)

810

847

268

1,115

Machinery, Equipment and vehicles (net of depreciation)

Construction in progress
Other
Less: Accumulated depreciation

868

850

(697)

(693)

170

157

16,10017,232595

484

Investment securities

141

234

Deferred tax assets

698

553

Lease and guarantee deposits

570

507

Other

2,219

2,165

Allowance for doubtful accounts

(424)

(424)

Other (net of depreciation)
Total Tangible fixed assets
Intangible fixed assets
Investments and other assets:

Total investments and other assets

3,206

3,036

Total fixed assets

19,902

20,75333,58636,965

Total Assets

13(In Millions of Yen)

As of March 31
FY2022

FY2023Liabilities:
Current Liabilities:
Notes and accounts payable trade

2,463

1,968

782

486

Short-term loans payable

3,462

4,015

Current portion of long-term loans payable

1,372

1,364

200

300

Accounts payable

3,296

4,503

Accrued expenses

1,112

1,220

Lease obligations

530

522

Accrued income taxes

350

655

Accrued consumption taxes

753

523

Contract liabilities

1,587

1,423

Provision for bonus

263

283

Electronically recorded obligations - operating

Current portion of bonds payable

Allowance for resource-recycling expenses

11

13

Other

194

728

16,38218,010Total current liabilities
Non-Current Liabilities:

500

700

5,472

4,107

Lease obligations

841

709

Long-term lease deposited

45

45

Provision for directors’ retirement benefits

44

Bonds payable
Long-term loans payable

Provision for disposal site closing expenses
Liability related to retirement benefits

523

577

2,104

2,217

Other

1,643

1,680

Total non-current liabilities

11,135

10,042

27,51828,053

Total Liabilities

Net Assets:
Shareholders’ Equity:
Capital stock

14,041

14,041Retained earnings(6,666)(3,968)Treasury stock(1,481)(1,481)

Total shareholders’ equity

5,893

8,591

72

137

Foreign currency translation adjustment

106

163

Adjustment for retirement benefits (cumulative)

(24)

0

Total Accumulated other comprehensive income

154

302

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities

20

18

Total Net Assets

6,068

8,912

Total Liabilities and Assets

33,58636,965

Non-controlling Interests

14(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(In Millions of Yen)

From April 1 to March 31
FY2022
46,277

FY202347,167

Cost of Sales

30,06829,064Gross Profit

16,208

18,102

Sales commission

650

612

Advertising expenses

341

408

Provision of allowance for doubtful accounts

77

(44)

Salaries and bonuses

7,224

6,872

Provision for bonuses

183

190

Net sales

Selling, General and Administrative expenses

194

222

Legal welfare expenses

1,077

1,073

Rent expenses

1,060

1,063

Retirement benefit expenses

368

376

Other

3,243

3,582

Total selling, general and administrative expenses

14,423

14,358

1,785

3,744

13

9

Depreciation

Operating Profit (Loss)
Non-Operating Profit:
Interest income
Dividends income

34Land and house rent revenue

63

63

Subsidy income

27

10Electricity sale income

16

18

Other

60

36

Total non-operating income

185

142

Interest expenses

299

252

Commission expenses

21

23

Loss on retirement of non-current asset

66

89

Other

30

54

Total non-operating expenses

418

420

1,552

3,466

-

19

Non-Operating Expenses:

Ordinary Profit (Loss)
Extraordinary losses
Impairment losses

19

Total extraordinary losses
1,552

3,446

Income Taxes-Current

341

634

Income Taxes-Deferred

(119)

116

Total Income Taxes

222

750

1,329

2,695

(2)

(1)

1,332

2,697

Income (Loss) Before Income Taxes and Minority Interests

Net Income
Profit (Loss) attributable to the Non-Controlling Shareholders
Profit (Loss) attributable to owners of parent

15(Consolidated Statements of Comprehensive Income)(In Millions of Yen)

From April 1 to March 31
FY2022
1,329

FY2023
2,695

Valuation difference on available-for-sale securities

29

65

Foreign currency translation adjustment

657

Income Before Minority Interests
Other Comprehensive Income:Retirement benefit adjustment
Total other comprehensive income
Comprehensive Net Income

(24)

25

11

148

1,341

2,844

1,343

2,845

(2)

(1)

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

16(3) Consolidated Statements of Changes in Net Assets
The previous consolidated fiscal year (April 1, 2022 to March 31, 2023)(In Millions of Yen)

Shareholders’ equity
CapitalsurplusCapital stock
Balance at the beginning ofcurrent period

Retainedearnings

14,041

1

Treasury stock

Total shareholders’equity(1,481)

4,566(7,995)

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

1,332

1,332
(0)

Purchase of treasury stock
Change in ownership interestof parent due to transactions
with non-controlling interests(5)

Transfer from retained
earnings to capital surplus

3

(3)

(0)
(5)
－

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

-

(1)

1,329

(0)

1,327

Balance at the end of current
period

14,041-(6,666)(1,481)

5,893(In Millions of Yen)

Accumulated other comprehensive income
Valuationdifference on
available forsale securities
Balance at the beginning ofcurrent period

43

Foreigncurrencytranslation
adjustment

Retirement
benefits
adjustment

100

(0)

Total accumulated
other comprehensive
income142

Minority
interests

Total net
assets22

4,732

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

1332

Purchase of treasury stock(0)

Change in ownership interestof parent due to transactions
with non-controlling interests(5)

Transfer from retained
earnings to capital surplus－

Net changes of items otherthan shareholders’ equity

29

6

(24)

11

(2)

8

Total changes of items during
the period

29

6

(24)

11

(2)

1,335

Balance at the end of current
period

72

106

(24)

154

20

6,068

17

The consolidated fiscal year (April 1, 2023 to March 31, 2024)(In Millions of Yen)

Shareholders’ equity
Capital stock
Balance at the beginning ofcurrent period

Retained earnings

14,041

Total shareholders’equityTreasury stock(6,666)(1,481)

5,893

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

2,697

2,697

Purchase of treasury stock

(0)

(0)

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

－

2,697

(0)

2,697

Balance at the end of current
period

14,041(3,968)(1,481)

8,591(In Millions of Yen)

Accumulated other comprehensive income
Valuationdifference on
available forsale securities
Balance at the beginning ofcurrent period

72

Foreigncurrencytranslation
adjustment

106

Retirement
benefits
adjustment

Total accumulated
other comprehensive
income(24)

154

Minority
interests

Total net
assets20

6,068

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

2,697

Purchase of treasury stock(0)

Net changes of items otherthan shareholders’ equity

65

57

25

148

(1)

146

Total changes of items during
the period

65

57

25

148

(1)

2,843

Balance at the end of current
period

137

163

0

302

18

8,912

18

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

April 1 to March 31
FY2022

FY2023

Net Cash Provided by (used in) Operating Activities:
Income before income taxes and minority interests

1,552

3,446

Depreciation and amortization

1,889

1,654

-

19

Increase (Decrease) in provision for bonuses

(10)

19

Increase (Decrease) in allowance for disposal site closing expenses

(209)

54

Increase (Decrease) in liabilities in retirement

117

138

Increase (Decrease) in allowance for doubtful accounts

(57)

(123)

Interest and dividends income

(17)

(13)

Interest expenses

299

252

Decrease (Increase) in notes and accounts receivable trade

1,766

(608)

Decrease (Increase) in inventories

(452)

33

Impairment losses

Decrease (Increase) in other current assets

150

(71)

Increase (Decrease) in notes and accounts payable trade

(558)

(804)

Increase (Decrease) in accounts payable – other

209

971

Increase (Decrease) in consumption tax refund receivable

616

(230)

Increase (Decrease) in other current liabilities

(96)

288

Other

444

297

Subtotal

5,645

5,324

15

32

Interest expenses paid

(298)

(249)

Income taxes paid

(374)

(376)

Income taxes refund

46

91

5,034

4,821

(998)

(352)

Interest and dividends income received

Net cash provided by operating activities

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

1,089

824

Purchase of tangible fixed assets(1,073)(2,091)

Proceeds from sales of tangible fixed assets
Purchase of intangible assets
Other
Net cash provided by investing activities

7

13

(62)

(135)

(18)

(57)

(1,056)(1,800)19

April 1 to March 31
FY2022
FY2023

Net Cash Provided by (used in) Financing Activities:
Increase (Decrease) in short-term loans payable(6,689)553

Proceeds from long-term loans payable

5,053

-

Repayments of long-term loans payable(892)(1,372)

Proceeds from issuance of bonds
Redemption of bonds

-

500

(200)

(200)

66

41

(504)

(540)

Proceeds from sale and installment back

524

1,140

Repayments of installment payables

(639)

(775)

Proceeds from sale and leaseback transactions
Repayments of finance lease liabilities

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

(26)

(23)

(3,307)

(678)

3

10

673

2,352

Balance of Cash and Equivalents at beginning of period

3,243

3,916

Balance of Cash and Equivalents at end of period

3,916

6,269

Net Increase (Decrease) in Cash and Cash Equivalents

20(5) Notes to the Consolidated Financial Statements(Notes to Assumption of Going Concern): None(Segment information)
Ⅰ. Overview of reportable segments
The Group’s reportable segments are components of the Group about which
separate financial information is available. These segments are subject to periodic
examinations to enable the company’s Board of Directors to decide how to allocate
resources and assess performance.
HS Division
The Division performs termite eradication services for detached houses forgeneralhouseholds,

foundation

repairs/home

reinforcement

systems,

andunder-floor/roof ventilation systems.
ES Division
The Division performs maintenance and construction of water supply anddrainage facilities, insect pest control of buildings and condominiums.
SE Division
The Division mainly sells and installs photovoltaic power generation systems andstorage batteries for detached houses.
PV Division
The Division installs and maintain photovoltaic power generation systems andother systems for corporations and also wholesales photovoltaic power generation
systems and equipment.
PPS Division
The Division is engaged in the retail sale of electric power to households andcorporations.
ERD Division
The Company processes waste plastics collected as industrial waste and sells
plastic fuels to SANIX ENERGY INCORPORATED, a consolidated subsidiary. The
subsidiary operates the power generation business by using plastic fuels purchasedfrom the Company and its consolidated subsidiary Hokkaido SANIX Environment

21

Incorporated,

andincinerated

ashes

generated

by

SANIX

ENERGYINCORPORATED implement final disposal of by C&R Landfill Incorporated, aconsolidated subsidiary. SE Wings Inc. our consolidated subsidiary, is purchasing
electricity from SANIX ENERGY INCORPORATED and sell to consumers, and
SANIX SOLUTION, our consolidated subsidiary, sells chemicals to SANIXENERGY INCORPORATED.
In addition, it accepts and processes organic wastewater from the foodservice
industry and food factories and treat a wide variety of wastewater from industrial
wastewater from other factories, to produce raw materials for compost, cement, andrecycled fuel.
Ⅱ. Calculation method of net sales, profit or loss, assets, liabilities and other items ineach reported segment
The accounting method of reported business segments complies with theaccounting policy adopted for preparing consolidated financial statements.
Profits in the reportable segments are based on operating income.
Intersegment sales and transfers are determined by reference to current market
values.

22

Ⅲ. Information concerning the Amount of Net Sales and Operating profit (loss) bysegmentⅰ) FY2022 (From April 1, 2022 to March 31, 2023)(In Millions of Yen)
Segments
Elimination
or Group(note 1,2)

Consolidated(note 3)

46,277－

46,277

－

－

－

－

5,381

16,51846,277－

46,277

22

239

3,153

4,835

(3,050)

1,785

669

5,040

887

17,80927,516

6,069

33,586

2

0

36

0

1,494

1,580

308

1,889

0

1

61

2

1,322

1,436

129

1,566

HS

ES

SE

PV

PPS

ERD

Total

11,449

2,575

1,726

8,625

5,381

16,518

－

－

－

－

－

Total

11,449

2,575

1,726

8,625

Operating profit(loss)

1,337

130

(47)

Assets2,645

464

Depreciation

45

Increase inproperty, plant andequipment andintangible assets

49

Sales:
Sales to customers
Internal sales
among segments
and transfer
accounts

Others:(note1) Negative ¥3,050 million for adjustments of Operating profit (loss) represents corporate expenses
not allocated to reportable segments. Corporate expenses are mainly general and administrative expenses
note attributable to reportable segments.
(note2) An adjustment of segment assets is the Company assets of ¥6,069 million that are not allocated to
the reportable segments and consist mainly of surplus funds for investment (cash and deposits), long-term
invested funds (investment securities) and assets related to administrative divisions.
(note3) Operating profit (loss) is adjusted to operating loss of consolidated statements of income.

23ⅱ) FY2023 (From April 1, 2023 to March 31, 2024)(In Millions of Yen)
Segments
Elimination
or Group(note 1,2)

Consolidated(note 3)47,167－

47,167

－

36

(36)

－

2,598

18,88647,203(36)

47,167

294

100

4,722

6,841

(3,097)

3,744

241

5,427

720

18,92328,476

8,489

36,965

4

0

48

1

1,266

1,359

294

1,654

－

－

－

19

－

－

19

－

19

15

1

－

308

20

2,238

2,583

159

2,743

HS

ES

SE

PV

PPS

ERD

Total

11,857

2,700

1,267

9,857

2,598

18,886

－

－

－

36

－

Total

11,857

2,700

1,267

9,893

Operating profit(loss)

1,716

67

(59)

Assets2,705

456

Depreciation

38

Impairment losses
Increase inproperty, plant andequipment andintangible assets

Sales:
Sales to customers
Internal sales
among segments
and transfer
accounts

Others:(note1) Negative ¥3,097 million for adjustments of Operating profit (loss) represents corporate expenses
not allocated to reportable segments. Corporate expenses are mainly general and administrative expenses
note attributable to reportable segments.
(note2) An adjustment of segment assets is the Company assets of ¥8,489 million that are not allocated to
the reportable segments and consist mainly of surplus funds for investment (cash and deposits), long-term
invested funds (investment securities) and assets related to administrative divisions.
(note3) Operating profit (loss) is adjusted to operating loss of consolidated statements of income.

24(Per-share information)
FY2022(Apr.1, 2022 to Mar.31, 2023)

FY2023(Apr.1, 2023 to Mar.31, 2024)

Net assets per share¥126.51¥186.04

Net Income per Share, Diluted¥27.87¥56.43(note1) The diluted earnings per share for the fiscal year under review is not stated because there are noresidual shares.

(note2) The calculation basis of net assets per share is as follows.
FY2022(Apr.1, 2022 to Mar.31, 2023)
Total amount in net assets(¥ million)

FY2023(Apr.1, 2023 to Mar.31, 2024)

6,068

8,912

Amounts deducted from the total
amount in net assets (¥ million)

20

18

Non-controlling interests(¥ million)

(20)

(18)

Net assets at the end of period oncommon shares (¥ million)

6,047

8,893

Number of common shares at theend of period used in calculationof net assets per share (shares)

47,804,413

47,804,183(note3) The calculation basis of net income per share is as follows.
FY2022(Apr.1, 2022 to Mar.31, 2023)
Net Income per Share,
Diluted (¥ million)
The calculation basis of net
income per share is as follows(¥ million)
Profit attributable to owners ofparent on common shares(¥ million)
Average number of commonshares during the fiscal year
(shares)

FY2023(Apr.1, 2023 to Mar.31, 2024)

1,332

2,697

－

－

1,332

2,697

47,804,439

47,804,343

25(Significant subsequent events)(Reduction of capital stock and appropriation of surplus)
The Company resolved at a meeting of the Board of Directors held on May 15, 2024 tosubmit a proposal for a reduction in capital stock and appropriation of surplus to an the 46th
general shareholders meeting to be held on June 27, 2024.
Ⅰ. Purpose of reduction of capital stock and appropriation of surplus
The Company proposes to reduce the amount of capital stock and appropriation of
surplus in accordance with the provisions of Article 447, Paragraph 1 of the Companies
Act and Article 452 of the Companies Act for the purpose of covering losses andensuring flexibility in future capital policies. This will improve the Company's financial
soundness and ensure flexibility and mobility of its future capital policy.
Ⅱ. Details of the reduction of capital stock(ⅰ) Amount of capital stock to be reduced
The Company

plans

a ¥9,836,447,281 reduction from

capital stockof¥14,041,834,640 and to transfer the amount to other capital surplus. Amount to be
reduced ¥4,205,387,359(ⅱ) Method of reduction of capital stock
The Company will implement a capital reduction without compensation, in which
only the amount of the stated capital will be reduced without any change in the total
number of outstanding shares and will transfer the reduction to other capital surplus
in full.
(ⅲ) Effective date of capital stock reduction
September 2, 2024 (plan)
Ⅲ. Details of the appropriation of surplus(ⅰ) Item of surplus to be decreased and amount of decrease
Other capital surplus9,836,447,281 yen(ⅱ) The item of surplus to be increased and its amount
Retained earnings brought forward9,836,447,281 yen
Ⅳ. Schedule(ⅰ) Date of resolution by the Board of Directors: May 15, 2024(ⅱ) Date of resolution at the Annual General Meeting of Shareholders: June 27, 2024
(plan)(ⅲ) Date of public notice for the statement of creditors' objections: July 16, 2024 (plan)(ⅳ) Deadline for creditors’ objections: August 19, 2024 (plan)(ⅴ) Effective date: September 2, 2024 (plan)

26

Ⅴ. Future outlook
The matter is a transfer of money between different account titles in the net assets
section in the balance sheet. It results in no change in the amount of the Company's
total number of outstanding shares and net assets. Consequently, there is no changes
net assets per share.
The matter is subject to approval for the reduction in the amount of capital stock at
the 46th meeting of shareholders scheduled to be held on June 27, 2024.

27

4. Supplemental Information
Consolidated Net Sales by Division（In Million of Yen）
From April 1 to March 31
Comparison
Unit
FY2022

FY2023Item
QTY

AmountQTY

AmountQTY

AmountTermite control construction*1,000
tsubo

607

3,939

676

4,141

69

201

Under-floor/attic ventilation system

－

－

2,869

－

2,979

－

110

3,943

1,692

3,656

1,653

(287)

-38

－

－

2,948

－

3,083

－

135

－

－

11,449－11,857－407

Anti-rust equipment installation

Piece

997

1,138

945

1,015

(52)

-122

Water supply and drainage repair

－

－

742

－

1,012

－

270

Waterproofing and renovation ofbuildings

－

－

320

－

280

－

-40

Others

－

－

373

－

391

－

18

－

－

2,575

－

2,700

－

125

－

－

1,726

－

1,267

－

-459

－

－

1,726

－

1,267

－

-459

Sales and installation of PV system

－

－

8,389

－

9,753

－

1,363

Wholesale of PV system

－

－

143

－

49

－

-93

Others

－

－

93

－

91

－

-1

Phtovoltaic Division Total

－

－

8,625

－

9,893

－

1,268

Sales of Electricity

－

－

5,381

－

2,598

－

-2,783

－

－

5,381

－

2,598

－

-2,783

Plastic fuelｔ

273,475

9,829

278,403

9,754

4,927

-74

Power Plant

－

－

3,122

－

5,312

－

2,190

Waste liquid treatmentｔ99,656

2,059

102,964

2,139

3,307

79

Landfill

－

－

1,014

－

966

－

-48

Others

－

－

492

－

713

－

221

Environmental Resources
Development Division Total－－

16,518－18,886－

2,368

Others

－

－

－

－

－

－

－

Adjustment of intersegment sales

－

－

－

－

(36)

－

-36

Total Net Sales－－

46,277－

47,167－890

Foundation Repair/
Home Reinforcement System
OthersHome Sanitation Division Total

Establishment Sanitation
Division Total
Sales and installation of PV system
Solar Engineering Division Total

Power Producer and Supplier
Division Total

House(Note 1) Descriptions are omitted for items that are handled in such a wide range that it is difficult to grasp their quantity.
(Note 2) 1,000 tsubo is approximately 3,305.785 ㎡.