Code：4651

Financial Results Briefing For
the Fiscal Year Ended March 31, 2024

SANIX INCORPORATED
May 15, 2024

1. Financial Results of FY2023

P.3

2. Financial

P.21

3. Financial Results forecast of FY2024

P.30

4. Topics

P.36

5. Supplementary materials(Business Structure)

P.39（Note）
・ Numbers are rounded off to the nearest whole number.
・ “( )” in operating profit, ordinary income and net income indicate operating loss, ordinary loss and net loss respectively.
・ In case of negative or above 1,000%, margin is expressed by “-”.
・ 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.
Copyright© SANIX INCORPORATED

1

Financial Results for the Fiscal year
Ended March 31,2024

Copyright© SANIX INCORPORATED

2

Financial Results of FY2023
Increase in sales and profit year on year
⚫ Net sales increased due to an increase in the unit price of electricity sold by the Tomakomai
power plant, despite the impact of business restructuring in the PPS(Power Producer and
Supplier) Division.
⚫ Operating profits in all business segments significantly exceeded those of the same period of theprevious year, with a particular contribution from an increase in the unit contract price ofelectricity sold by the Tomakomai power plant.

Millions of Yen

FY2022
Results

FY2023Results

FY2023
Plan

YoY

Plan ratio

Net Sales

46,277

47,16747,965101.9%

98.3%

Gross Profit

16,208

18,102

17,668111.7%

102.5%(Gross Profit Margin)

35.0%

38.4%

36.8%

Operating Profit

1,785

3,744

3,231

209.7%

115.9%(Operating Profit Margin)

3.9%

7.9%

6.7%

Ordinary Profit

1,552

3,466

3,014

223.3%

115.0%(Ordinary Profit Margin)

3.4%

7.3%

6.3%

Profit (loss) attributableto owners of parent

1,332

2,697

2,495

202.5%

108.1%(Net Profit Margin)

2.9%

5.7%

5.2%

Copyright© SANIX INCORPORATED

3

Net Sales of FY2023
Net Sales Composition
FY2022
Results

FY2023Results

FY2023
Plan

YoY

Plan ratio

Millions of Yen

Net Sales

46,277

47,16747,965101.9%

98.3%

Residential Environment

15,751

15,824

17,337100.5%

91.3%

Energy14,007

12,455

12,493

88.9%

99.7%

Resource Circulation

16,51818,88618,134114.3%

104.2%

HS
25.1%

ERD
40.0%

40.0%

33.6%
FY2023
ES
5.7%

26.4%
PPS
5.5%

Residential
Environment

PV
20.9%

Energy■ Year-on-Year Comparison

＋407

【ＨＳ】

Resource
Circulation【millions of Yen】

＋125

ｰ459

＋1,231

46,277

FY2022

SE
2.7%

【ＥＳ】

【ＳＥ】

【ＰＶ】

ｰ2,783＋2,368

【ＰＰＳ】

【ＥＲＤ】

Residential Environment

EnergyResource Circulation+73

ｰ1,551＋2,368

Copyright© SANIX INCORPORATED

47,167

FY2023

4

Operating Profit of FY2023
Operating Profit Margin
FY2022
Results

FY2023Results

FY2023
Plan

YoY

Plan ratio

25.0%

Millions of Yen

Operating Profit

1,785

3,744

3,231

209.7%

115.9%

Residential Environment

1,421

1,724

2,281

121.3%

75.6%

Energy

261

377

104

144.1%

359.5%

Resource Circulation

3,153

4,722

3,611

149.8%

130.8%

Group(3,050)(3,079)(2,766)

ー

19.1%

9.0%

10.9%
1.9% 3.0%

Residential
EnvironmentーEnergyFY2022■ Year-on-Year Comparison

Resource
Circulation

FY2023【millions of Yen】
ｰ28

ｰ62

ｰ12

＋254

ｰ138

＋1,568

【ＥＳ】

【ＳＥ】

【ＰＶ】

【ＰＰＳ】

【ＥＲＤ】

3,744

+378

1,785
FY2022【ＨＳ】

Residential Environment

EnergyResource Circulation

＋303

＋115

＋1,568

Copyright© SANIX INCORPORATED【Group】

FY20235

【 Residential Environment Area 】
Residential Environment Area
⚫ Maintenance for detached houses⚫ Maintenance for apartment complexes

A comfortable living environment
to the next generation⚫ Residential solar power installation⚫ Hygiene management

We at SANIX promote a comprehensive maintenance service for detached houses, condominiums and other facilities, from theperspective of preventive medicine (the concept of prevention). In addition, by offering a broad range of services including
photovoltaic power generation, renovation, and urban space sanitation, we create comfortable and clean living conditions that canbe passed down from generation to generation.

HS Division
Our staff who are familiar with termite behavior take proper measures
to prevent infestations and exterminate termites. By utilizing
professional skills and expertise supported by a wealth of experienceand an excellent track record, in addition to well-prepared after-sales
services, we protect houses and eliminate house owners' concerns
about termite damage.

Residential Environment Area
Net Sales Composition

Termite control construction

Under-floor/attic
ventilation system

SE
8%

ES Division
We implement central control efficiently regarding the maintenance ofwater supply and drainage facilities. Using our mainstay anti-rustequipment and other devices, we keep rust from growing inside pipes
and extend the usable life of pipes, while also solving problems by
removing limescale and oil stains or limiting the ability of limescaleand oil to attach to surfaces.
Endoscopic inspection of the inside of
the water supply and drainage pipes

ES
17%

Pest control and removal

SE Division
We enable environmentally and budget-friendly lifestyles bypromoting photovoltaic power generation equipment for detachedhouses. We also make proposals on the flexible use of electricity
through the introduction of storage batteries amid the growing
demand for self-consumption type photovoltaic power generationequipment.

Net Sales
FY2023¥15,824 million

HS
75%

Residential solar power
generation system

Storage batteries

Copyright© SANIX INCORPORATED

6

【 Residential Environment Area 】【 HS Division 】 (Year-on-Year Comparison)⚫ increases in sales and profit
Sales increased, reflecting the solid performance of termite control construction and underfloor/attic ventilation systems due to the strengthening of sales policies focused on the developmentof new customers and the acceleration of initiatives with an eye toward the enhancement of its
customer foundation.
Profit increased, reflecting not only higher sales but lower subcontracting costs and reduced fixed
costs such as SG&A expenses.
FY2022
Results

FY2023Results

FY2023Plan【 millions of Yen 】
YoY

Plan ratio

Millions of Yen

Net Sales

11,44911,857

12,837103.6%

92.4%

3,344
2,781

Termite control
construction

3,939

4,141

4,408

105.1%

93.9%

Under-floor/
attic ventilation system

2,869

2,979

3,279

103.8%

90.9%

Foundation Repair/
Home Reinforcement System

1,692

1,653

1,918

97.7%

86.2%

Others

2,948

3,083

3,232

104.6%

95.4%

Gross Profit

6,870

7,214

7,771

105.0%

92.8%

Operating Profit

1,337

1,716

2,080

128.3%

82.5%

2,465

651

1Q

Copyright© SANIX INCORPORATED

231

72

2Q

3Q

2,857 3,027 2,956 2,876 2,997

381

445

445

385

438

4Q

1Q

2Q

3Q

4Q

FY2022Net Sales(Results)

FY2023Operating Profit(Results)7

【 Residential Environment Area 】【 ES Division 】 (Year-on-Year Comparison)⚫ increases in sales, decrease in profit

Sales increased, reflecting the solid performance of building water supply and drainage
repair work due to the strengthening of relationships with business partner such as theowners of buildings and condominiums and property management companies. However,profit decreased due to product lines consisting of products with high cost ratios.

FY2022
Results

FY2023Results

FY2023Plan【 millions of Yen 】
YoY

Plan ratio

Millions of Yen

Net Sales

2,575

2,700

2,600

104.9%

103.9%

643

641

-13

22

38

1Q

2Q

3Q

547

Anti-rust equipment
installation

1,138

1,015

1,220

89.2%

83.2%

Others

1,436

1,684

1,380

117.2%

122.1%

Gross Profit

1,344

1,293

1,443

96.2%

89.6%

Operating Profit

130

67

163

51.8%

41.4%

743

83
4Q

FY2022Net Sales(Results)

Copyright© SANIX INCORPORATED

707

680

692

-10

36

7

33

1Q

2Q

3Q

4Q

618

FY2023Operating Profit(Results)8【 Residential Environment Area 】【 SE Division 】 (Year-on-Year Comparison)⚫ decreases in sales and profit

Although sales of storage batteries and replacement of power conditioners for existing
photovoltaic power generation systems increased, the sales level temporarily declined
due to the allocation of personnel to the development of business partners. Meanwhile,the deficit narrowed due to improved profitability.

FY2022
Results

FY2023Results

FY2023Plan【 millions of Yen 】
YoY

Plan ratio

Millions of Yen

Net Sales
Gross Profit
Operating Profit

1,726

1,267

1,900

73.4%

66.7%

607

360

639

59.4%

56.4%

(47)

(59)

37

－

401

390

-44

-55

1Q

2Q

491

443
292

301

354

318

-33

-31

-3

8

1Q

2Q

3Q

4Q

－

9

43

3Q

4Q

FY2022Net Sales(Results)

Copyright© SANIX INCORPORATEDFY2023Operating Profit(Results)9【 Energy Area 】
Energy with low environmental impact

Energy Area
⚫ Installation of photovoltaic power generation equipment for selfconsumption for corporate clients⚫ Maintenance of existing photovoltaic power equipment/plants⚫ Development for photovoltaic power generation for energy companies⚫ Retail sales of electric power

We at SANIX seek to promote the widespread adoption and expansion of renewable energy while also supporting the promotion ofenvironmental management, including the provision, introduction and maintenance of optimal photovoltaic generation systems, in
response to customers' needs.

PV Division
We facilitate the effective use of the roofs of plants and otherbuildings. We support cost reduction efforts (electricity), disaster
preparedness and environmental management through photovoltaic
power generation with a focus on self-consumption type and thirdparty owned type photovoltaic power generation systems. We
provide comprehensive services including planning, design andinstallation, as well as aftersales services.

Energy Area
Net Sales Composition

Self-consumption type / PPA【PPA(third-party owned type photovoltaic power generation systems)】
PPA operators install photovoltaic power generation systems on
customers' roofs or other places on their premises and bear the cost of
installation (the PPA operator owns, maintains and manages thesystem). According to this scheme, the PPA operator provides theelectricity generated by the system to the customer for a fee.

Development of non-FIT
power sources

We provide a range of support
services, including internet-based
monitoring (remote monitoring)and legally required maintenanceand inspections, to ensure that
customers' photovoltaic power
generation systems are securely
operated.

Ｏ＆Ｍ

PPS Division

PPS
21%

Net Sales
FY2023¥12,455 million

PV
79%

We were registered as the nation's eighth power producer and supplier (electricity retailing) in 2001
and registered with the Ministry of Economy, Trade and Industry as an retail electricity supplier at
November 2015. The photovoltaic power generation business and electricity sales business arestrongly connected to each other. The synergy between the two businesses enables us to offer abroad range of services.
Electricity retail

Copyright© SANIX INCORPORATED

10

【 Energy Area 】【 PV Division 】 (Year-on-Year Comparison)⚫ increases in sales and profit
Actively accelerated the development of non-FIT power sources and the installation of corporateuse self-consumption type photovoltaic power generation plants. Increase in sales and profit due to
steady growth in the number of contracts, and revision of sales prices in response to price hikes inmaterials and other items.
Procuring new electric wires for construction became difficult in the third quarter caused delays invarious construction projects, but these are improving now.
FY2022
Results

FY2023Results【 millions of Yen 】

FY2023
Plan

YoY

Plan ratio

3,340

Millions of Yen

Net Sales
Sales and installationof PV system
Wholesaleof PV system
OthersGross Profit
Operating Profit

2,929
8,625

9,857

10,119114.3%

97.4%

8,389

9,716

9,912

115.8%

98.0%

143

49

120

34.5%

41.2%

93

91

87

98.0%

104.3%

1,928

2,227

2,099

115.5%

106.1%

22

276

102

ー

270.2%

2,287

2,064 2,087

2,365

1,691 1,716-67
1Q

Copyright© SANIX INCORPORATED

-91

37

144

2Q

3Q

4Q

FY2022Net Sales(Results)

-41

-8

-17

1Q

2Q

3Q

344
4Q

FY2023Operating Profit(Results)11【 Energy Area 】【 PPS Division 】 (Year-on-Year Comparison)⚫ decreases in sales and profit
Sales and profit decreased as the sales scale became approximately half that of the previous fiscal
year, due to the restructuring of the business that began in the previous fiscal year. However,profitability was secured by reorganizing the business structure to one that does not rely on market
procurement (sales and profits remained steady against the plan and exceeded expectations).

FY2022
Results

FY2023Results

FY2023Plan

YoY

Millions of Yen

Net Sales

1,408

1,289
5,381

2,598

2,373

48.3%

109.5%

Gross Profit

419

222

150

53.1%

148.5%

Operating Profit

239

100

2

42.0%

ー

【 millions of Yen 】

1,624

Plan ratio

1,058
751
583
161

104

2Q

3Q

-28
1Q

633

1

32

36

18

12

4Q

1Q

2Q

3Q

4Q

FY2022Net Sales(Results)

Copyright© SANIX INCORPORATED

629

FY2023Operating Profit(Results)12【 Resource Circulation Area 】
Resource Circulation Area

Recycling resources instead of abandoning⚫ Recycling of waste plastics⚫ Purification of waste liquid and production of recycled fuel⚫ Power generation from waste plastic fuel⚫ Final disposal of industrial waste

We at SANIX contribute to the establishment of a recycling-oriented society through efforts including the conversion-to-fuel andrecycling of industrial waste plastics and the purification and recycling of waste water discharged from food factories and otherfacilities for the betterment of the global environment for next generations of people.
Fuel conversion of waste plastic

Resource Circulation Area
Net Sales Composition

We operate 15 factories (plastic resource development plants)
nationwide to convert industrial waste plastics to fuel. Waste plastics,
whose sizes and shapes are different, are finely ground and recycled
as fuel that replace oil and coal. We began full-scale material
recycling efforts.
Plastic resource
development factory

Plastic fuelResource recycling power generation system

Landfill Others 4%
5%

Waste liquid
treatment
11%

We use plastics converted to fuel at the plastic resource development
plants as an energy source for power generation facilities. As theseplastics generate a greater amount of heat than coal while emitting
less CO2 and generating less incinerated ash, we can supply highvalue-added (non-fossil value) electricity with a low environmental
load.
Tomakomai power plant

Final disposal site

Net Sales
FY2023¥18,886 million

Power Plant
28%

Waste liquid treatment / recycling

Plastic fuel52%

We have a system in place for accepting large amounts of organic waste water and other wastematerials discharged by businesses in the foodservice industry, food factories, a range of drainage
pits and other facilities. Through a series of processing measures, the system has the ability toeliminate more than 99% of highly concentrated pollutants. In addition, we promote the conversionto-fuel and recycling of oil content and dehydrated sludge.
Waste liquid treatment plant

Copyright© SANIX INCORPORATED

13

【 Resource Circulation Area 】【 ERD Division 】 (Year-on-Year Comparison)⚫ increases in sales and profit
Despite an increase in repair expenses at Tomakomai power plant due to legal inspections (frommid-March to end-April 2023), sales and profit levels increased due to an increase in the contract
price of electricity sold, resulting in profitability.

FY2022
Results

FY2023Results

FY2023Plan【 millions of Yen 】
YoY

Plan ratio

Millions of Yen

Net Sales

16,51818,88618,134114.3%

104.2%

Plastic fuel

9,829

9,754

9,985

99.2%

97.7%

Power Plant

3,122

5,312

4,837

170.1%

109.8%

Waste liquid treatment

2,059

2,139

2,120

103.9%

100.9%

Landfill

1,014

966

688

95.3%

140.3%

Others

492

713

501

144.9%

142.3%

Gross Profit

5,037

6,784

5,563

134.7%

121.9%

Operating Profit

3,153

4,722

3,611

149.8%

130.8%

4,071

4,146 4,400

4,495 4,703

3,899

710

847

784

810

1Q

2Q

3Q

4Q

Copyright© SANIX INCORPORATED

4,779 4,908

FY2022Net Sales(Results)

1,484 1,218 1,522
497
1Q

2Q

3Q

4Q

FY2023Operating Profit(Results)

14

Various transitions in the ERD Division
Tomakomai power plant operating status
Total electricity generation(GWh)

Acceptance of waste plastic

Repair expense(millions of Yen)

Amount of waste plastics
accepted(1,000t)

Unit price of treatment(thousand of yen / ton)

120

1,200

90

60

100

1,000

80

50

80

800

70

40

60

600

60

30

40

400

50

20

20

200

40

10

0

30

0

1Q

2Q

3Q

4Q

1Q

FY2021
boilers

Statutory
inspection turbines
Periodic
inspection

•

2Q

3Q

4Q

1Q

FY2022

〇

2Q

3Q

4Q

FY2023

1Q

2Q

3Q

4Q

FY2021

1Q

2Q

3Q

FY2022

4Q

1Q

2Q

3Q

4Q

0

FY2023

〇
〇
〇

〇

〇

〇

repair expense(Plan)

repair expense(Results)

Total electricity generation(Plan)

Total electricity generation(Results)

Amount of waste plastics accepted(Plan)

Amount of waste plastics accepted(Results)

Unit price of treatment(Plan)

Unit price of treatment(Resuts)*Unit price of treatment = Sales of plastic fuel divided by theamount of waste plastics accepted

FY2023 statutory inspection: Mid-March to April 2023
※Legally required inspections: Once every two years (turbines: every four years, boilers: every two years）

Copyright© SANIX INCORPORATED

15

Consolidated financial condition
The equity ratio improved 6.1% points to 24.1%.

Millions of Yen

As of
As of
March 31,2023 March 31,2024 Difference

Ratio

Current Assets

13,683

16,211+ 2,527118.5%

Non-Current Assets

19,902

20,753+ 851

104.3%

33,58636,965+ 3,379

110.1%

Current Liabilities

16,38218,010+ 1,628109.9%

Non-Current Liabilities

11,135

10,042- 1,092

90.2%

Total Liabilities

27,51828,053+ 535

101.9%

Total Net Assets

6,068

8,912

+ 2,843146.9%

Total Liabilities and Assets

33,58636,965+ 3,379

110.1%

Equity ratio

18.0%

24.1%

Total Assets

Copyright© SANIX INCORPORATED

16

Capital investment / Depreciation

FY2022
Results

FY2023Results

Millions of Yen

Residential Environment

51

16

Energy

63

328

1,322

2,238

129

159

1,566

2,743

Resource Circulation
Headquarter

Capital investment【 Major capital investment 】【Resource Circulation Area】⚫

Investment related to the disposal facilities ofplastic waste：¥940 Million⚫

Investment related to the Landfill ：¥612 Million⚫

Investment related to the Tomakomai power
plant：¥433 Million⚫

Investment related to the Waste liquid
treatment ：¥231 Million【Energy Area】

Depreciation

1,889

1,654

⚫

Investment in PPA for municipalities：¥139 Million

Copyright© SANIX INCORPORATED

17

Number of Personnel and sites by Division
As of March 31, 2023
( number of )sites

personnel

As of March 31, 2024
sites

personnel

personnel
difference

HS Division

63

853

62

864

+ 11

ES Division

12

160

12

162

+2

SE Division

14

81

14

75

-6

PV Division

35

254

30

245

-9

PPS Division

1

15

1

13

-2

ERD Division

18

444

19

455

+ 11

Headquarter

―

247

―

235

- 12

Total

―

2,054

―

2,049

-5

※The abovementioned number of sites includes the double counting of sites operated by multiple divisions.
※One power generation facility and one final disposal facility are included in the ERD Division.

Copyright© SANIX INCORPORATED

18

Important Management Indicators
FY2020Results

FY2021Results

FY2022
Results

FY2023Plan

FY2023Results

Return on equity

ROE

27.9%

―

24.8％

35.0％

36.1％

Return on assets

ROA

6.4%

―

4.5％

9.0％

9.8％

24.5%

13.5%

18.0％

22.0％

24.1％

11.2%

―

8.4％

14.0％

14.4％

Equity ratio
Return on invested
Capital

ROIC(Millions of Yen)FY2020Results

FY2021Results

FY2022
Results

FY2023Plan

FY2023Results

Capital investment

3,083

2,776

1,566

2,400

2,743

Depreciation

1,097

1,509

1,889

1,800

1,654

Copyright© SANIX INCORPORATED

19

Review of Target Figures of Mediumterm Management Plan Figures

Copyright© SANIX INCORPORATED

20

Long-Term Vision / Medium-Term Management Plan
Disclosed on May 15, 2023 (reiterated)

Rapid growth period

Long-Term
Vision2030

Growth acceleration period

Medium-Term
Management Plan
FY2023 to FY2025【FY2025】

Medium-Term
Management Plan
FY2019 to FY2022

Net sales¥53 Billion
Operating Profit¥3 Billion
EBITDA¥5 Billion
ROE
15％(or more)
Equity ratio
30％(or more)【FY2030】
Net sales¥100 Billion
Operating Profit
Margin10％
ROE
17％(or more)
ROIC
15％(or more)【FY2022】Net sales¥46.2 Billion
Operating Profit¥1.7 Billion
ROE
24.8％
Equity ratio
18.0％

Creation of new businesses⚫
Expansion ofstrategic
investments

Execution ofstrategic
investments

Expansion of business opportunities⚫

Activation of investments for decarbonization⚫

Obligation to improve the environmental value of residential housing⚫

Transition to a resource-recycling economy

Creation of more new businesses inthe environment, energy, andrecycling fields

Creation of new businesses

Full-scale launch of start-up
business⚫

⚫

Creation of new businesses in theenvironment, energy, and recycling
sectors

Copyright© SANIX INCORPORATEDMoving onto a stable trajectory oflaunching businesses and growing
them into business pillars

21

Review of Target Figures ofMedium-term Management Plan Figures
Review of Target Figures
FY2023
Initial Plan

Results

FY2024difference

Initial Plan Revised plan

FY2025difference

Initial Plan Revised plandifference

Net Sales

47,96547,167- 797

50,00046,246- 3,754

53,00051,500- 1,500

Operating Profit

3,231

3,744

+ 512

3,200

1,715

- 1,485

3,000

2,800

- 200

EBITDA

4,800

5,398

+ 598

4,900

3,500

- 1,400

5,000

4,900

- 100

ROE

35.0%

36.1%

+ 1.1

24.0%

11.6%

- 12.4

16.0%

17.0%

+ 1.0

ROIC

14.0%

14.4%

+ 0.4

12.0%

6.4%

- 5.6

10.0%

10.0%

- 0.0

Equity ratio

22.0%

24.1%

+ 2.1

27.0%

25.4%

- 1.6

30.0%

29.0%

- 1.0

※ EBITDA is operating profit + depreciation.

We reviewed the management objectives for FY2024 and FY2025 in the Medium-Term
Management Plan (FY2023 to FY2025) announced in May 15, 2023.
There are no major changes in the following basic policies and strategies set forth in the MediumTerm Management Plan.

1. Increase earnings strength through steady growth in existing businesses and secure a stablefinancial base.
2. Establish a strategic investment framework while ensuring financial soundness andinitiating aggressive growth investments for future growth.
3. Pave the way for an early resumption of dividend payments by accumulating stable profits.
Copyright© SANIX INCORPORATED

22

Review of Target Figures ofMedium-term Management Plan Figures 【 Business Areas 】
Major factors in review of Target Figures⚫ Regarding the unit price of electricity sold at Tomakomai power plant in the resource circulation area, we had assumed thatelectricity prices would be lower after the fiscal year ending March 31, 2025 due to prolonged high energy prices, but we haverevised the unit price of electricity sold at Tomakomai power plant because electricity market prices have recently declined
more than expected.
⚫ In the photovoltaic power generation business for corporate clients in the energy domain, demand and inquiries forphotovoltaic power generation have been increasing due to the full-scale efforts for a decarbonized society and soaring
electricity costs, but the timing of sales recording has been revised due to the prolonged period from order receipt toinstallation.
FY2023
Millions of Yen

Net Sales

Initial Plan

Results

FY2024difference

Initial Plan Revised plan

FY2025difference

Initial Plan Revised plandifference

47,96547,167- 797

50,00046,246- 3,754

53,00051,500- 1,500

Residential Environment

17,337

15,824- 1,51218,30017,704- 596

19,30018,600- 700

Energy12,493

12,455- 38

14,60012,320- 2,280

16,50016,000- 500

Resource Circulation

18,134

18,886+ 752

17,00016,221- 779

17,00016,800

- 200

3,231

3,744

+ 512

3,200

1,715

- 1,485

3,000

2,800

- 200

2,281

1,724

- 557

2,379

2,379

+0

2,500

2,500

+0

104

377

+ 272

461

252

- 209

900

1,000

+ 100

3,611

4,722

+ 1,111

2,988

1,863

- 1,125

2,100

1,800

- 300

(2,766)(3,079)- 313(2,630)(2,780)- 150(2,500)(2,500)+0Operating Profit
Residential Environment
EnergyResource Circulation
Group

Copyright© SANIX INCORPORATED

23

Capital Policy
Elimination of deficit
At a meeting of the Board of Directors held on May 15, 2024, the Company resolved tosubmit a proposal to the 46th Ordinary General Meeting of Shareholders to be held on
June 27, 2024, regarding the reduction of capital stock and appropriation of surplus.
Changes in capital stock（Plan）

Liabilities

Capital stock¥14.0 billion¥4.2 billion

Retained earnings brought forward
AssetsElimination of deficit by transferring capital stock toretained earnings brought forward (deficit disposition)

Net
AssetsThe 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 theamount of the Company's total number of outstanding shares and net
assets . Consequently, there is no changes net assets per share.

To improve financial soundness and ensure flexibility and mobility ofcapital policy in the future.

Secure stable profits and resume dividend payments as soon as possible
Copyright© SANIX INCORPORATED

24

Resource Allocation⚫
⚫
⚫
⚫

The earning power of the entire business will increase during the plan period of the Medium-term Management Plan.
After revision of numerical targets, 3-year cumulative EBITDA is expected to be 13.7 billion yen, down from 14.7
billion yen.
Numerical targets will be reviewed, but the basic policy on strategic investments will remain unchanged.
The portion excluding debt repayment and facility renewal are considered to be the within the limit for strategic
investment and funds are allocated for growth.
Set up a strategic investment framework of
4.8 billion yen over 3 years.

the basic policy will remain unchanged
Initial Plan

Resource Allocation

Revised Plan
Fundraising, etc.
EBITDA for FY2023¥5.3 billion

Total EBITDA for
FY2023-FY2025¥14.7 billion

Allowance forstrategic investment¥4.8 billion

・Entry into the material recycling business・Expansion and construction of waste-to-fuel facilities
・Improvement of power generation performance atTomakomai power plant

R&D investment
・Solar cell module recycling demonstration

Investment in human capital

Investment infacility renewal¥4.7 billion
Total EBITDA for
FY2024-FY2025¥8.4 billion

Capital expenditures(existing expansion, new)・Securing of highly specialized human resources
・Active recruitment and training of human resources

M&A, alliances, etc.
・Acceleration of growth (area and service expansion)

Debt repayment¥5.2 billion

・Synergy creation

IT investment
・Improve cyber security※ EBITDA is operating profit + depreciation.

・Improving operational efficiency through the use of
BI/RPA and other tools

Copyright© SANIX INCORPORATED

25

Progress in Growth Investments
Enhancement and Streamlining of Existing Facilities【Waste water business】【 Waste water business 】⚫

⚫

Expansion of the recycled fuel production line（Refer topage 36）
Operation to begin in March 2024
Done

Production capacity

A new line to convert sludge contained in organic liquid waste
into solid fuel is expected to start operation
Operation is expected to start in the fiscal year ending
March 31, 2026

Largest liquid waste treatment
facility in Japan

2,160t / year

Facility throughput
1,300 ㎥/day

Approx. doubled

reats a wide variety of liquid waste

4,320t / year

Waste liquid treatment plant (Hibiki Factry)
Kitakyushu City, Fukuoka

Expansion of Business Areas【Waste plastic processing business】【Waste plastic processing business】⚫

⚫

Starting material recycling initiatives in earnest
Installing crushing equipment for material recycling
Fuji plant and Moka plant have already introduced

Done

Introduction is scheduled at other plants as needed

Next Step
Fuji plant: Pellet production equipment is planned to be installed
Diversification of waste outlets (expansion of sales channels)

Ota plant: Installation of pre-processing equipment is planned
Processing capacity will be significantly increased

Establish a resource recycling network through a waste
management system.
Started the launch of centralized waste management system,
Ichigen-kun series（Refer to page 27）

Research and Development for Commercialization【Research and development of new business】⚫

Start demonstration recycling of used photovoltaic panels
Installing crushing processing equipment is planned: August 2024

Copyright© SANIX INCORPORATED

26

Waste Management System
Started the launch of centralized waste management system, Ichigen-kun series
Enabling labor-saving and streamlining of various operations, cost optimization and environmental
contribution through visualization (Kankyo Ace Ichigen-kun is scheduled to add a CO₂ emissions
calculation function on May 20). We have received favorable reviews from many business operators for all
types of situations.
Kankyo Ace Ichigen-kun(For waste generators)

Introduction of some of our achievements
DAIKI ALUMINIUM
INDUSTRY CO., LTD

Tobu Department Store Co.,Ltd.

Toyo Aluminium K.K.

Sun A.Kaken Company,
LimitedIWATSUKACONFECTIONERY CO., LTD

Sogo Co.

TOKAI CHEMICALINDUSTRIES, LTD

Taiko Refractories Co., Ltd.

Sanpai Ace Ichigen-kun (For intermediate
waste treatment companies)

Daikyu Seimen Co.

AIWA CORP CO., LTD

A dedicated system that supports proper and efficient operations by digitalizing
intermediate processes such as quotation preparation, manifest preparation, andpayment/receipt management.

Goko Logistics Co.

Art house clean Co.

A system that visualizes all aspects of waste, including collection and treatment
flow, volume, and recycling rate, to achieve appropriate and efficient business
operations.
Start sales in April 1, 2022 （Service name before change：「SANIX system」）

Shuun Ace Ichigen-kun(For waste collectors and transporters)
A dedicated system that supports proper and efficient operations by visualizationand transportation operations such as contracts, reception, dispatching, collection
and transportation, vehicle management, and various types of recordkeeping
related to general.

Start sales in May 1, 2023（Service name before change：「SANIX system pro」）

Start sales in May 15, 2024

※Listed in no particular order

The names Kankyo Ace Ichigen-kun and Shuun Ace Ichigen-kun were decided after soliciting ideas within the Company in order to renew thebranding of the centralized waste management system. This is part of our efforts to respect the opinions of our employees and to stimulate
communication within the company.

Copyright© SANIX INCORPORATED

27

transition to holding company structuretransition to holding company structure（April 1, 2025(Plan))
The SANIX Group has decided to begin preparations for the transition to a holding company structure, believing that this is the best
way to respond quickly to any changes in the business environment and to achieve sustainable growth.
We plan to transfer the business to operating companies in each of our three business Residential Environment Area, Energy Area ,and Resource Circulation Area
< Transition Schedule >May 15, 2024 “”

Board of Directors' resolution on transition to holding company structure and establishment of resource recycling
business company SANIX Resources Development Group Inc.

May 29, 2024（Plan）

Board of Directors' resolution to enter into an absorption-type demerger agreement with a company in the resource
circulation area

June 27, 2024（Plan）

Resolution of the Ordinary General Meeting of Shareholders to amend the Company's Articles of Incorporation
regarding the Company's trade name and purpose

September 27, 2024（Plan）
April 1, 2025（Plan）

Board of Directors' resolution to establish a business company in a residential environment area

< Image of holding company structure >ＳＡＮＩＸ ＨＯＬＤＩＮＧＳＩＮＣＯＲＰＯＲＡＴＥＤ

April 1, 2025（Plan）
The Company plans to transition to a holding company structure
while maintaining its listing
Changed the current trade name of SANIX INCORPORATED

Energy Area

Resource Circulation Area

Residential Environment Area

Wholly owned
subsidiary

Wholly owned
subsidiary（New）SANIX INCORPORATED➢▲For more information▲transition to holding company structure

Businesses related to total maintenance of
detached and multi-family housing (HS, ES,
SE Divisions)

Wholly owned
subsidiary

SANIX RESOURCE DEVELOPMENTGROUP INCORPORATEDSANIX ENGINEERING INCORPORATED➢Business relating to the sale, installationand maintenance of photovoltaic power
generation systems for enterprises.

Copyright© SANIX INCORPORATED➢Businesses related to the recycling ofwaste plastics, purification of waste water,
and fuel production (environmental
resource development business)

28

Financial results forecast for FY2024

Copyright© SANIX INCORPORATED

29

Financial results forecast for FY2024●Net Sales¥46,246million （Y o Y 98.0％）●Operating Profit¥1,715million （Y o Y 45.8％）
First Half

Millions of Yen

Plan

Second Half

Diff. from FY2023

Plan

Full-Year

Diff. from FY2023

Plan

Diff. from FY2023

Net Sales

22,726+ 137

23,519- 1,058

46,246- 921

Gross Profit

7,848

- 700

8,153

- 1,400

16,001- 2,100(Gross Profit Margin)

34.5%

Operating Profit

613(Operating Profit Margin)

2.7%

Ordinary Profit

483(Ordinary Profit Margin)

2.1%

Profit (loss) attributableto owners of parent

366(Net Profit Margin)

1.6%

34.7%
- 868

1,102

34.6%
- 1,159

4.7%
- 860

957

727
3.1%

Copyright© SANIX INCORPORATED- 2,028

3.7%- 1,165

4.1%
- 759

1,715

1,440

- 2,025

3.1%
- 843

1,093

- 1,603

2.4%

30

Financial results forecast for FY2024【 Business Areas 】● Major Impacts➢

Residential environment area Sales and profits are expected to increase：
Expand existing businesses by leveraging in sales capacities and our customer base.

➢

Resource circulation area Sales and profits are expected to decrease：
Decrease in the unit price of electricity sold by Tomakomai power plant.

First Half
Millions of Yen

Net Sales

Plan

Second Half

Diff. from FY2023

Plan

Full-Year

Diff. from FY2023

Plan

Diff. from FY2023

22,726+ 137

23,519- 1,058

46,246- 921

Residential Environment

8,977+ 1,073

8,726

+ 805

17,704+ 1,879

Energy

6,115

+ 629

6,204

- 764

12,320- 134

Resource Circulation

7,633- 1,565

8,587- 1,099

16,221- 2,665

613

- 868

1,102

- 1,159

1,715- 2,028

1,336

+ 483

1,043

+ 171

2,379

+ 655

Energy

174

+ 155

78

- 279

252

- 124

Resource Circulation

566- 1,414

1,297- 1,443

1,863- 2,858(1,464)- 92(1,316)+ 391(2,780)+ 299

Operating Profit
Residential EnvironmentGroup

Copyright© SANIX INCORPORATED

31

Business Areas Forecast for FY2024【Residential Environment Area】● Forecasted increase in sales and profit from the previous fiscal year➢

Expand the continuous follow-up system for existing customers and increase the number of customers by strengthening
the corporate sales system.

➢

A wide range of support from termite control to residential environmental needs (residential PPA, storage batteries, etc.)➢

Expansion from anti-rust equipment (product name: Daelman Shock) to maintenance measures for water supply anddrainage facilities for apartment complexes.

First Half
Millions of Yen

Sales
proportion

Plan

Second Half
Diff. fromFY2023Plan+ 1,0738,726

Net Sales

8,977

HS Division

6,816

75.9%

+ 832

6,502

ES Division

1,366

15.2%

+ 39

SE Division

795

8.9%

Cost of sales

3,941
Material costs
Labor costs

Gross Profit
SG & A
Personnel expenses

Operating Profit

Sales
proportion

Full-Year
Diff. fromFY2023

Plan

Sales
proportion

Diff. fromFY2023+ 805

17,704

74.5%

+ 628

13,31875.2%+ 1,461

1,433

16.4%

+ 59

2,800

15.8%

+ 99

+ 200

791

9.1%

+ 117

1,586

9.0%

+ 318

43.9%

+ 559

4,066

46.6%

+ 492

8,008

45.2%

+ 1,051

1,378

15.4%

+ 250

1,402

16.1%

+ 215

2,781

15.7%

+ 465

1,320

14.7%

+ 78

1,388

15.9%

+ 158

2,708

15.3%

+ 237

5,035
3,699

56.1%

+ 514

53.4%

+ 313

+ 828

+ 30

41.4%

+ 141

9,695
7,316

54.8%

41.2%

4,660
3,617

41.3%

+ 172

2,332

26.0%

+ 92

2,333

26.7%

+ 137

4,665

26.4%

+ 230

1,336

14.9%

+ 483

1,043

12.0%

+ 171

2,379

13.4%

+ 655

Copyright© SANIX INCORPORATED+ 1,87932

Business Areas Forecast for FY2024【Energy Area】● Forecasted decreases in sales and profit from the previous fiscal year➢

For PV systems, work to expand its sales channels for self-consumption photovoltaic power generation systems whilestrengthening our system for replacing equipment and the after-sales maintenance of customers' photovoltaic power
generation systems.

➢

Promote the sale of electricity by effectively utilizing the added value of non-fossil value electricity from the Tomakomai
power plant.

First Half
Millions of Yen

Sales
proportion

Plan

Net Sales

6,115

PV Division

4,898

PPS Division

Cost of sales

Second Half
Diff. fromFY2023

Sales
proportion

Plan

+ 629

6,204

80.1%

+ 746

4,986

1,217

19.9%

- 117

4,917

80.4%

Material costs

3,427

Labor costs

Gross Profit
SG & A
Personnel expenses

Operating Profit

Full-Year
Diff. fromFY2023

Plan

Sales
proportion

Diff. fromFY2023- 764

12,320

80.4%

- 720

9,884

80.2%

+ 26

1,218

19.6%

- 44

2,436

19.8%

- 161

+ 468

5,072

81.7%

- 483

9,989

81.1%

- 15

56.0%

+ 246

3,498

56.4%

- 420

6,925

56.2%

- 173

316

5.2%

+ 17

316

5.1%

+ 12

633

5.1%

+ 29

1,198
1,024

19.6%

+ 161

18.3%

- 280

- 119

+5

17.0%

-1

2,330
2,078

18.9%

16.7%

1,132
1,054

16.9%

+4

539

8.8%

-7

572

9.2%

+1

1,112

9.0%

-6

174

2.8%

+ 155

78

1.3%

- 279

252

2.1%

- 124

Copyright© SANIX INCORPORATED

- 134

33

Business Areas Forecast for FY2024【Resource Circulation Area】● Forecasted decreases in sales and profit from the previous fiscal year➢

In the plastics business, increase in the volume of orders received and expansion of sales channels through capital investment➢

Begin material recycling efforts for recycling raw materials for plastic products.

➢

Expand the functionality of the disposal operations management system to enable the calculation of emission volumes required forsustainability reporting, in addition to support for contracts, manifests, and performance reporting to local governments.

➢

In the area of waste water treatment, expand the production of Recycled Oil Bio, an alternative fuel to heavy oil, and promote theconversion of sludge generated after waste water treatment into recycled fuel.

First Half
Millions of Yen

Sales
proportion

Plan

Net Sales

7,633

Plastic fuel

5,049

Power Plant
Waste liquid treatment
Landfill

Cost of Sales
Labor costs

Gross Profit
SG & A
Personnel expenses

Operating Profit

Second Half
Diff. fromFY2023Plan- 1,565

8,587

66.2%

- 33

5,213

1,053

13.8%

- 1,565

1,136

14.9%

393

Sales
proportion

Full-Year
Diff. fromFY2023

Plan

Sales
proportion

Diff. fromFY2023- 1,099

16,221

60.7%

- 171

10,263

63.3%

- 204

1,850

21.5%

- 844

2,903

17.9%

- 2,409

+ 126

1,198

14.0%

+ 69

2,335

14.4%

+ 196

5.1%

- 93

324

3.8%

- 154

718

4.4%

- 248

6,018

78.8%

- 190

6,227

72.5%

+ 333

12,246

75.5%

+ 143

995

13.0%

+ 45

1,004

11.7%

+4

1,999

12.3%

+ 50

1,614
1,048

21.2%

- 1,375

27.5%- 1,433- 2,809

+ 39

12.4%

+9

3,974
2,111

24.5%

13.7%

2,360
1,063

13.0%

+ 48

637

8.3%

+ 36

640

7.5%

+5

1,278

7.9%

+ 42

566

7.4%

- 1,414

1,297

15.1%

- 1,443

1,863

11.5%

- 2,858

Copyright© SANIX INCORPORATED- 2,665

34

Topics

Copyright© SANIX INCORPORATED

35

Efforts to realize a resource-recycling society
Expansion of the recycled fuel production line.
Production capacity 2,160t / year

4,320t / year

To accelerate the realization of a resource-recycling society, we havedoubled the number of production lines for Recycled Oil Bio, derived fromwaste water as an alternative fuel to heavy oil, at our waste water treatment
plant. We commenced operation in March 2024.

Recycled Oil Bio
It is recycled fuel that can be used as an alternative to fossil fuels by removing
trash and sludge from industrial waste such as waste water and sludge
generated by restaurant chains, and separating and recovering only the oilcontent. This is a fuel that can contribute to carbon neutrality. It is made fromoils derived from plants and animals, and is also a product that achieves both
the reduction of industrial waste and recycling through the use of unused
resources.

Recycled Oil Bio currently has three official recognitions

Industrial waste as raw
material

Recycled fuel (Recycled
Oil Bio)

Recycled Products from Fukuoka
PrefectureAwarded from Director-General,
Industrial Science,Technology andEnvironment Policy Bureau,METI
SANIX awarded from the METI Industrial
Science ,Technology and Environment
Policy Bureau Director-General's Award at
the 2023 Awards for Resource Recycling
Technology and Systems for the"Development of Environmentally Friendly
Heavy Oil Alternative Fuel Recycled from
Industrial Waste."

Kitakyushu Eco
Premium
Kitakyushu Eco Premium supports theSustainable Development Goals (SDGs)©Teitan,City of Kitakyushu（March 2023）（November 2021）▲Release: October 23,2023▲

Copyright© SANIX INCORPORATED

36

Efforts to realize a decarbonized society
Efforts to realize a decarbonized society
In today's world, where countermeasures against global warming and environmental destruction are urgently needed,
creating a sustainable society is a common understanding around the world. Through the installation of photovoltaic
power generation equipment at the facilities of like-minded customers, we are working together to realize adecarbonized society.

Case Studies

Release: October 26,2023➤

Release: April 4,2024

Release: April 9,2024➤

YOSHINOYA CO.,LTD.(Tokyo factory)
System total capacity ：399. 6kW

KYUSHU SANGYO UNIVERSITY
System total capacity ：360kW

Toko Metal Co., Ltd.(Chiba factory)
System total capacity ：797.16kW

installation
Our photovoltaic power generation business is strong in the provision of integrated services from procurement tosales, installation and maintenance.
Number of industrial solar powersales and installation

Approx.

29,000

Number of residential solar powersales and installation

Approx.

20,000

Number of remote monitoring
equipment

Approx.

11,000※ As of the end of March 2024

Copyright© SANIX INCORPORATED

37

Supplementary materials（Business structure）

Copyright© SANIX INCORPORATED

38

Our Philosophy and business area
Corporate Philosophy“Clean and comfortable environment for the next generation”
Make it common “Energy with low
environmental impact”
Main power source for renewable energy, distributed
power source, self-consumption, microgrid, VPP

EnergyMake it common “A comfortableliving environment is linked to thenext generation”⚫
⚫

PV Div.
PPS Div.

Long-life quality housing, securing housing stock,formulation of Pre-owned housing distribution market

Residential
Environment⚫ HS Div.
⚫ ES Div.
⚫ SE Div.

Resource
Circulation⚫ ERD Div.
Make it common “Recycling resources
without abandoning them
Basic Environmental Plan, Promotion of Recycling-Oriented
Society, Plastic Resource Recycling Strategy

Copyright© SANIX INCORPORATED

39

Business structure of the HS Division
Business structure of the HS Division
Termite control
construction

Providing services andproducts to respond to therange of needs associated withhousing.

・Guarantee for 5 years,

・Periodic inspections once each year

New
Customers

Establishment of a customer base
1

2

3 4

5

1 2
Redisinfection

Guarantee for 5 years,
periodic inspections
once each year

Measures to prevent moisturefrom invading houses

Foundation Repair

Flow chart for customer base development
New
Customers

Under-floor/attic ventilation system

3 4

5Redisinfection

Guarantee for 5 years,
periodic inspections
once each year

Repair of foundation cracks
Measures to reduce new
cracksHome Reinforcement System
Systems for enhancing theseismic resistance anddurability of houses

Visits, fliers and referrals

Development and response to new demand through theestablishment of trust relationships with customers

Copyright© SANIX INCORPORATEDOthers
Products for the improvementof living environments
including renovations

40

Business structure of the ES Division
Business structure of the ES Division
Sales

Real estate managementcompany

SANIX

Sales
End-userOwners of condominiums,
rental apartments, offices, etc.

Conducting sales through realestate management companies

Introduction

Service
Major services and products
Water supply and drainage repair

Structure maintenance services

・Anti-rust equipment installation (Daelman
Shock）
・Piping work (repair and replacement of watersupply and drainage pipes)
・Water service work

Building rooftops
Application of waterproof
paints to external walls,etc.

OthersMeasures to prevent
environmental pollution,
etc.

SANIX/PCO services
Restaurants, Hotels, Food factories ,etc.

Pest and vermin control
service ,HACCPNew Contract

Annual contract (inspection and disinfection
to be conducted once a month)

1st Year

Renewal rates are high due to annual
contracts

Copyright© SANIX INCORPORATED

2nd Year
41

Business structure of the SE and PV Division
Business structure of the SE and PV Division
Provision of a total service including manufacturing, sales, installation and maintenance.
Development and manufacturing

Sales

・Factory owned by theCompany (solar panels
and ancillary devices)
・Development of bases

・Simulation based on onsite surveys
・Various procedures
・Bundled sales of storage
batteries

Constructs

O&M(Maintenance)

・Detailed design・Installation work
・Electrical work

・Remote monitoring,and others, List of paid
maintenance services
・Warranty systems

SE Division for housing(less than 10 kW)

PV service for companies and municipalities(10 kW or more)⚫ Newly built houses: Promote ZEH⚫ Existinghouses: Support renovation forenergy conservation

Decarbonization initiatives are in full swing, especially withincompanies and local governments. The market, which differsfrom that under the FIT system, is expected to grow significantly
as methods of installing and owning photovoltaic power
generation facilities and methods of supplying generated
electricity become more diverse and sophisticated.

The PV market for residential and small buildings is
expected to grow steadily against the backdrop of
accelerated introduction of PV service due to theabove factors.
Build a new organization dedicated to the residential
PV market, aiming to actively develop the market.

Organize a cooperative system for the development of a range ofservices, starting sales in earnest this fiscal year. Expand theservices offered through continued collaboration with othercompanies and the utilization of our own PPS business.

Copyright© SANIX INCORPORATED

42

Diversification and enhancement of methods for installing and owning photovoltaic
power generation facilities and those for supplying generated electricity.
Against the backdrop of rising electricity prices, low-cost photovoltaic power generation systems and the wideuse of PPA services, the introduction of photovoltaic power generation is in full swing, driven by the need for
economic rationality, decarbonization and resilience enhancement.

Self-consumption

On-site PPA

Off-site PPA

Third party-owned(TP0)Privately-owned(PV owned by X Co.)

Third party-owned(TP0)

selfconsignment
Private lines

Partialretailer supply
Partial supply

retailer

X Co.

retailer

Partialsupplyretailer
Land owned by X Co.

Partial supply

X Co.

Constructed by X Co. ,Leaseback after selling theequipment to a lease company,
etc.

Constructed by X Co. ,Leaseback after selling theequipment to a lease company,
etc.

Privately-owned(PV owned by X Co.)

retailerretailer
Land owned by X Co.

selfconsignment
Private lines

PartialsupplyLand owned by X Co.
Partial supply

retailer

X Co.

Source: he "Toward the popularization of power generation businesses" page of the Japan Photovoltaic Energy Association's website. Edited by the Company.

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Business structure of the ERD Division (i)Business structure of the ERD Division
Resource recycling power generation system Business
Power Plant and Landfill Business

Waste plastic processing businessElectric power company
and trading firm

Sources that generate waste
plastics (factories)
Paid collectionof waste plastics
Sales of waste
plastic fuel toexternal
sources

Plastics Resource Development
factories

paper manufacturers

Sales ofmaterials
Operating company

Supply of waste
plastic fuelSale ofelectricity

Tomakomai power plant
Unrecyclable
materials

Company engaging
in final disposal

Final disposal ofincinerated ash【 Tomakomai power plant 】

C&R(Landfill）

Waste generator
Acceptance of external
parties◼ Fifteen plastic resource development factories located across the nation engage in the collection of waste plastics
generated at companies' manufacturing factories, with fees for disposal.
◼ Collected waste plastics are processed into waste plastic fuel and supplied to the Tomakomai power plant.
◼ Power is generated using the waste plastic fuel at the Tomakomai power plant and sold to electric power companies
and trading firms.
◼ In addition to the power plant, waste plastic fuel is sold externally to paper manufacturers, or for use as a raw material.
◼ The incinerated ash generated by the Tomakomai power plant goes through the final disposal process at C&R (aTomakomai-based company that operates landfill sites)
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Business structure of the ERD Division (ii)
Waste liquid treatment

Sources that generate
Waste liquid

Paid collectionof waste liquid
Hibiki Factory(Kitakyushu city）

Reuse of oil

Entrustment ofdisposal operations

Operating company

Cement materials andcompostPurification
Sewerage and sea【 Hibiki Factory 】※The Hibiki factory is the largest
facility in Japan specializing in thetreatment of liquid waste.

◼ Waste liquid generated by food and beverage factories is collected with fees for disposal◼ Collected waste liquid is purified using microbe-based treatment ,etc. at the Hibiki factory (Kitakyushu City)◼ After purification, the treated water is reused as recycled waste liquid, or discharged into sewers or the sea after
confirmation that it satisfies discharge standards.
◼ Dehydrated sludge generated in the treatment process is reused as or converted into cement materials or compost

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Disclaimer
This material contains certain forward-looking statements. Such forward-looking statements are notintended to provide guarantees of our future performance and are based on certain assumptions andmanagement’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 theforward-looking statements in this material:changes in economic changes of the Feed-in-Tariff (FIT) scheme for renewable energy and changesof the utility company’s policy for installation of renewable energy, competition with othermanufacturers, 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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46

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