October 31, 2014

Sanix’s Response and Impact for the Suspension of Connection Application Replies
for Renewable Energy Power Generating Facilities

Sanix announces its response and impact on its sales and installation bsiomess of commercial solar
power systems as per below based on announcements by Kyushu Electric Power Co., Inc. and otherelectric power companies that they will suspend responding to applications for grid connections fromrenewable energy-based power generating facilities.
1.Impact on Sanix
Sanix has focused its management resources on the business area of commercial solar power systems
and is primarily engaged in solar power sales and installation businesses in a wide-ranging area from
Northern Kanto to the west, having started developing a direct sales and installation network in theEast Japan district, centered on the Kanto region, as well the current fiscal year.
Regarding the decision by electric power companies to suspend their response to applications forconnections this time around, Kyushu Electric Power, for example, has halted responding to new andexisting applications starting on September 25, and in the case of Shikoku Electric Power Co., Inc., itstarted suspending its response to new applications on October 1. As a result, with some exceptions, it
is not possible to undertake construction of solar power facilities within the areas served by Kyushu
Electric Power and Shikoku Electric Power.
Sanix will not be affected by Hokkaido Electric Power Co., Inc., Tohoku Electric Power Co., Inc. andOkinawa Electric Power Co., Inc., which have also announced that they would suspend their response
like Kyushu Electric Power and others, because the Company does not conduct business in the service
areas of these power companies.
Sanix primarily works on low-voltage solar power system (at least 10kW and below 50kW), which canbe installed in about one week, and the Company had expected to complete the installation of aportion of orders that were placed starting in October and realize these as sales during the current
fiscal year because the time involved from when the customer places an order to completion ofinstallation is relatively short. However, Sanix has determined that new orders that it was expecting
to receive in the second half of the fiscal year will not be posted as sales before the end of this fiscalyear amid the inability to see when the response to new applications will resume in the areas servedby the two electric power companies.
Meanwhile, Kyushu Electric Power announced on October 21 that it will resume replying toapplications for low-voltage facilities (excluding subdivision projects) that were submitted throughSeptember 24. As a result of this decision, the Company can anticipate posting sales this fiscal year ofa portion of projects that had already completed their connectivity application with Kyushu ElectricPower by September 24.

2.Sanix’s Response
The Company has been responding as follows, given such conditions.
1) Following Kyushu Electric Power’s announcement on September 24 to suspend its response, theCompany diverted its salespeople in the Kyushu and Shikoku regions to other districts and started toreinforce its sales activities in those areas. Amid such conditions and following Kyushu ElectricPower’s announcement that it would lift its suspension on responding for a portion of existing
applications, Sanix reduced the number of personnel that had been diverted to other districts to followup on existing applications and has been pushing forward with reinforcing sales of residential solarpower (at or below 10kW) that are not subject to the suspension reply.
2) Regarding areas outside of the Kyushu and Shikoku districts, Sanix is concentrating on sales ofsmall-scale low-voltage projects, such as roof installations, for which grid connections are easycompared with other commercial solar power facilities and take a relatively short period in terms ofthe time spent from application submission for a connection contract all the way to completedinstallation.
3) The Company is responding flexibly in terms of transferring engineers located in the Kyushu
district to other areas based on construction conditions.
3.Future Outlook
For the earnings forecast for the fiscal year ending on March 31, 2015, please refer to “Revision ofEarnings Forecast for the Fiscal Year Ending March 31, 2015” that was separately disclosed today.
This forecast takes into account the value of earnings impacted as well as the projected amountresulting from the Company’s response to the measures taken by these electric power companies.

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