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.

August 9, 2023

Consolidated Financial Results
for the Three Months Ended June 30, 2023
(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
Hiroshi Soga, Corporate Planning Headquarters, Corporate Planning Department
Executive officer
Telephone:+81-92-284-5072
Scheduled date to file quarterly securities report:
August 10, 2023
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
Yes (for Institutional investor)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2023 (from April 1, 2023
to June 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Three months
ended
June 30, 2023

(Percentages indicate year-on-year changes.)

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

11,081(2.3)

154(54.8)

73(72.9)

63(63.6)

174-

June 30, 2022
11,3462.8
341
Note: Comprehensive income For the three months ended June 30, 2023:
For the three months ended June 30, 2022:
Basic earnings
per share
Three months
ended

270
¥ 98 million¥217million[(54.7)%][-%]

Diluted earnings
per share
Yen

Yen

June 30, 2023

1.33

-

June 30, 2022

3.66

-

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

June 30, 2023

33,642

6,166

18.3

128.58March 31, 2023

33,586

6,068

18.0

126.51

Reference: Equity
As of June 30, 2023:
As of March 31, 2023:¥6,146 million¥6,047 million%

Net assets
per shareYen

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarterend

Third quarter-end

Yen

Yen

Yen

Yen

Yen

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024

Fiscal year-end

Total

0.00

Fiscal year ending
March 31, 2024
(Forecast)

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

3. Consolidated financial forecasts for the fiscal year ended March 31, 2024(from April 1, 2023 toMarch 31, 2024)
Net sales

Operating profit

Profit attributableto owners ofparentOrdinary profit

Basic earnings
per share

Millions ofYen%Millions ofYen%Millions ofYen%Millions ofYen%First Half

23,873

5.4

1,452

94.6

1,336

118.5

1,035

133.8

21.65

Full Year

47,965

3.6

3,231

81.0

3,014

94.2

2,495

87.3

52.20

Note
1.Revision from the most recently announced forecast of consolidated business results: NoneYen

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in
the change in scope of consolidation): None
Newly included: - companies (Company name)
Excluded:- companies (Company name)(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial
statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations:None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)
(i)

(ii)

Total number of issued shares at the end of the period (including treasury shares)
As of June 30,2023

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 June 30,2023

1,114,983 shares

As of March 31,2023

1,114,983 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the
fiscal year)
Three months ended June 30, 2023

47,804,413 shares

Three months ended June 30, 2022

47,804,498 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
The forward-looking statements, including results forecasts, included in this material are based on the information that
the Company has obtained and certain assumptions that the Company considers reasonable. Actual results may differ
significantly for a range of factors. The assumptions for the results forecasts and cautions in the use of the forecasts
are described in 1. Qualitative Information for the three months ended June 30, 2023, (3) Information on the Future
Outlook, Including the Forecasts of Consolidated Business Results on page 5 of the Attachment.

Index of the attachment
1. Qualitative Information for the Three months ended June 30, 2023 ...................

2(1) Information of Consolidated Business Results ...........................................................................

2(2) Information of Consolidated Financial Position ..........................................................................
(3) Information on the Future Outlook,
Including the Forecasts of Consolidated Business Results ......................................................

4
5

2. Quarterly Consolidated Financial Statements and the Primary Notes for theThree months ended June 30, 2023.........................................................................................

6(1) Quarterly Consolidated Balance Sheets ......................................................................................

6(2) Quarterly Consolidated Statements of Income and Comprehensive Income ........................

8

Quarterly Consolidated Statements of Income ...........................................................................

8

Quarterly Consolidated Statements of Comprehensive Income ..............................................

9(3) Notes regarding the Quarterly Consolidated Financial Statements ........................................

10

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

10

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

10

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

11

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

12

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

12

2

1. Qualitative Information for the Three months ended June 30, 2023
(1) Information of Consolidated Business Results
During the first quarter under review (April 1 to June 30, 2023), the Japanese economy
continued to recover moderately, partly reflecting a recovery in inbound tourism-related
demand following the recategorization of COVID-19 as a class 5 infectious disease. However,
the outlook still remained uncertain, largely reflecting surging resource and energy prices andrising raw materials prices linked to a weaker yen.
In this social environment, guided by its corporate philosophy, “Clean and comfortableenvironment for the next generation," the Group facilitated the resolution of social issues
through its businesses and continued to work to help establish a sustainable society in theresidential environment, resource circulation and energy domains.
Additionally, the Group developed its Medium-Term Management Plan (FY2023 to FY2025).
Based on this plan, it will begin to actively implement growth investments to enable future
growth by establishing quotas for a strategic investment framework while simultaneously
securing a stable financial base by enhancing its earning capacity through the steady growthof existing businesses. The Group aims to accelerate its future growth by strategicallyinvesting and continuing to expand its strategic investment framework.
（Details are provided at our official website. https://sanix.jp/lang_en/e02/pdf/ir2023_5e-c.pdf）

In terms of net sales, ERD Division sales increased (up 10.4% 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 54.8% year on year) due
to the downsizing of the business to avoid risks linked to a rise in the cost of procuring
electricity. As a result, the Group's consolidated net sales for the first quarter under review
came to ¥11,081 million (down 2.3% year on year).
The Group's consolidated profit included operating profit of ¥154 million (down 54.8% year onyear), ordinary profit of ¥73 million (down 72.9% year on year) and profit attributable toowners of parent of ¥63 million (down 63.6% year on year) due in part to the posting of repair
expenses in conjunction with the statutory inspection of boiler turbines conducted at theTomakomai power plant in April 2023.
The consolidated results of the individual segment for the first quarter under review were as
follows:<Residential Environment Area>
a. HS (Home Sanitation) Division
The HS Division continued to strengthen its sales policy with a focus on the development 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, net sales came to ¥3,027 million

3(down 9.5% year on year), reflecting year-on-year decreases of 13.3% in the underfloor / attic
ventilation system and 16.7% in the foundation repair/ home reinforcement system despite ayear-on-year increase of 8.3% in termite control construction due to an increase in thenumber of contracts with new customers.
Operating profit decreased 31.7% year on year to ¥445 million due to a decrease in sales
from the same period of the previous year.
b. ES (Establishment Sanitation) Division
The ES Division has been strengthening its relationships with owners of buildings andcondominiums and affiliates such as property management companies. While net sales for
the Company's main anti-rust equipment installation (product name: Daelman Shock)decreased 2.0% year on year, net sales for water supply and drainage repairs rose 37.9%
year on year. Net sales for waterproofing and renovation of buildings also rose 30.2% year on
year. As a result, net sales for the segment totaled ¥618 million (up 13.1% year on year).
Operating loss stood at ¥10 million (operating loss of ¥13 million in the same period of theprevious year) due to increases in a range of costs including the cost of materials.
c. SE (Solar Engineering) Division
The SE Division, a business established in the previous fiscal year, focused on the sale ofphotovoltaic power generation systems developed specifically for detached houses, among
other products. Sales of storage batteries increased year on year, but the number ofphotovoltaic power generation systems whose construction was completed decreased. As aresult, net sales in this segment decreased to ¥292 million (down 27.1% year on year).
Operating loss totaled ¥33 million (operating loss of ¥44 million in the same period of theprevious fiscal year), reflecting efforts to improve profitability despite the decline in sales.
<Energy Area>d. PV(Photovoltaic) Division
The PV Division focused mainly on the sale and construction of self-consumption typephotovoltaic power generation systems for corporate use, the provision of the PPA services tolocal 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. As a result, net sales in this segment increased to ¥2,064 million (up 22.0% year onyear).
Operating loss came to ¥41 million (operating loss of ¥67 million in the same period of theprevious fiscal year). This is partly attributable to the impact of the increase in prices,
including the prices of materials.

4e. PPS(Power Producer and Supplier) Division
The PPS Division has been reducing its business since last year, considering that maintaining
profit is difficult due to a rise in the cost of electricity procurement. As a result, net sales in thissegment decreased to ¥583 million (down 54.8% year on year).
Operating profit stood at ¥32 million (operating loss of ¥28 million), reflecting improved
profitability due to the restructuring of businesses.
<Resource Circulation Area>
f. ERD (Environmental Resources Development) Division
In the ERD Division, plastic fuel sales decreased 2.5% year on year, sales for waste liquid
treatment decreased 5.8% year on year due to a decline in the waste acceptance volume,and landfill sales fell 9.5% year on year. On the other hand, power plant sales rose 62.9%
year on year due to the higher unit contract price of the electricity sold by the Tomakomai
power plant. As a result, net sales in this segment increased to ¥4,495 million (up 10.4% year
on year).
Operating profit for the segment amounted to ¥497 million (down 30.1% year on year) due tothe recording of repair expenses of legally required inspection of the Tomakomai power plant.
(2) Information of Consolidated Financial Position(Assets)
Current assets at the end of the first quarter under review amounted to ¥12,850 million, adecrease of ¥833 million from the end of the previous fiscal year. This was caused chiefly by arise in raw materials and supplies of ¥272 million and a decrease in cash and deposits of¥1,111 million.
Fixed assets were ¥20,791 million at the end of the fiscal year under review, an increase of¥888 million from the end of the previous fiscal year. Major factors include increases of ¥600
million in Other (net) in tangible fixed assets due to a rise in construction in progress and ¥381
million in machinery, equipment and vehicles (net depreciation).
As a result, total assets were ¥33,642 million at the end of June 2023, up ¥55 million from one
year earlier.
(Liabilities)
Current liabilities at the end of the first quarter under review amounted to ¥16,509 million, an
increase of ¥126 million from the end of the previous fiscal year. Primary factors for theincrease of ¥884 million in accounts payable - other, which more than offset a decrease of¥661 million in notes and accounts payable - trade.
Non-current liabilities totaled ¥10,966 million at the end of the period, a decrease of ¥169

5

million from the end of the previous fiscal year. The key factors were a decrease of ¥341
million in long-term borrowings, more than offsetting an increase of ¥135 million in Other in
non-current liabilities attributable to an increase in long-term accounts payable.
As a result, total liabilities were ¥27,475 million, down ¥42 million from the end of the previous
fiscal year.
(Net assets)
Total net assets at the end of the first quarter under review amounted to ¥6,166 million, an
increase of ¥98 million from the end of the previous fiscal year. The key contributions to theincrease included the posting of profit attributable to owners of parent of ¥63 million.
As a result, the capital adequacy ratio was 18.3% (compared with 18.0% a year earlier).
(3) Information on the Future Outlook, Including the Forecasts of Consolidated BusinessResults
Consolidated results forecasts for the fiscal year ending March 31, 2024 remain unchanged fromthe consolidated results forecasts announced on May 15, 2023.

6

2. Quarterly Consolidated Financial Statements and the Primary Notes for theThree months ended June 30, 2023
(1) Quarterly Consolidated Balance Sheets(In Millions of Yen)

As of

As of

March 31, 2023

June 30, 2023

Cash and deposits

4,504

3,392

Notes and accounts receivable-trade

4,827

4,542

Merchandise and finished goods

163

152

Costs on construction contracts in progress

134

194

Raw materials and supplies

2,901

3,173

Other

1,382

1,525

Assets :Current Assets :Allowance for doubtful accounts

(229)

(131)

13,683

12,850

Buildings and structures, net

2,355

2,280

Machinery, equipment and vehicles, net

4,286

4,668

Land

8,209

8,211

Total Current Assets
Non-current assets:
Property, Plant and Equipment :Other, net

1,250

1,851

Total Property, Plant and Equipment

16,10017,010Intangible assets

595

607

Investments and Other Assets :

3,206

3,173

Total non-current assets

19,902

20,79133,586

33,642

Total Assets

7(In Millions of Yen)

As of

As of

March 31, 2023

June 30, 2023

2,463

1,801

Liabilities :Current Liabilities :Notes and accounts payable-trade
Electronically recorded obligations - operating

782

977

Short-term loans payable

3,462

3,719

Current portion of long-term loans payable

1,372

1,364

200

200

Current portion of bonds payable
Accounts payable

3,296

4,180

Income taxes payable

350

122

Provision for bonuses

263

404

Allowance for resource-recycling expenses

11

9

Other

4,178

3,727

Total Current Liabilities

16,382

16,509Non-Current Liabilities :Bonds payable
Long-term borrowings

500

500

5,472

5,130

Provision for retirement benefits for directors

4

4Provision for disposal site closing expenses

523

535

Retirement benefit liability

2,104

2,127

Other

2,531

2,666

Total Non-Current Liabilities

11,135

10,966

27,51827,475

Capital stock

14,041

14,041Retained earnings(6,666)(6,602)

Treasury shares(1,481)(1,481)

Total Shareholders’ Equity

5,893

5,957

72

80

Total Liabilities
Net Assets :Shareholders’ Equity :Accumulated other comprehensive income :Valuation difference on available-for-sale securities
Foreign currency translation adjustment

106

127

Remeasurements of defined benefit plans

(24)

(18)

Total Other comprehensive income

154

189

20

19

Non-controlling Interests
Total Net Assets

6,068

6,166

Total Liabilities and Assets

33,586

33,642

8(2) Quarterly Consolidated Statements of Income and Comprehensive Income(Quarterly Consolidated Statements of Income)(In Millions of Yen)

Three months
From April 1 to June 30
FY2022

FY2023

Net sales

11,346

11,081

Cost of sales

7,266

7,323

Gross profit

4,080

3,757

Selling, general and administrative expenses

3,738

3,603

341

154

Interest income

44Dividends income

12

Rental income from land and buildings

15

15

Other

23

15

Total non-operating profit

45

38

Interest expenses

77

64

Loss on retirement of non-current asset

13

42

Other

25

12

Operating profit (loss)
Non-operating profit :Non-operating expenses :

116

119

Ordinary profit (loss)

Total non-operating expenses

270

73

Profit (loss) before income taxes

270

73

Income taxes-current

57

42

Income taxes-deferred

39

(32)

Total income taxes

97

9

Profit (loss)

173

63

Profit (loss) attributable to non-controlling interests

(1)

(0)

Profit (loss) attributable to owners of parent

174

63

9

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

Three months
From April 1 to June 30
FY2022
Profit (loss)

FY2023

173

63

Other comprehensive income :Valuation difference on available-for-sale securities(0)8

Foreign currency translation adjustment

44

20

Remeasurements of defined benefit plans, net of tax

0

6

Total other comprehensive income
Comprehensive net income

43

35

217

98

218
(1)

98
(0)

Comprehensive net income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

10(3) Notes regarding the Quarterly Consolidated Financial Statements(Notes on matters related to going concern assumption): None(Notes to Remarkable Changes in the amount of Shareholders’ Equity): None11(Segment Information, etc.)
Ⅰ.Three months ended June 30,2022 (From April 1, 2022 to June 30, 2022)
1. Information concerning the Amount of Net Sales and Operating Income (loss) by Segment
Segments
HS
Sales:
Sales tocustomers
Internal sales
among segments
and transfer
accounts

Total
Operatingprofit (loss)

ES

SE

PV

PPS

ERD

Total

Elimination
or Group(note 1)

Consolidated(note 2)

3,344

547

401

1,691

1,289

4,071

11,346－

11,346

－

－

－

－

－

－

－

－

－

3,344

547

401

1,691

1,289

4,071

11,346－

11,346

651

(13)

(44)

(67)

(28)

710

1,208

(866)

341

(note 1)
Negative ¥866 million for adjustments of Operating profit (loss) represents corporate expenses not allocated toreportable segments. Corporate expenses are mainly general and administrative expenses note attributable toreportable segments.
(note 2)
Operating profit is adjusted to operating loss of quarterly consolidated statements of income.

Ⅱ. Three months ended June 30,2023 (From April 1, 2023 to June 30, 2023)
1. Information concerning the Amount of Net Sales and Operating profit (loss) by Segment
Segments
HS
Sales:
Sales tocustomers
Internal sales
among segments
and transfer
accounts

Total
Operatingprofit(loss)

ES

SE

PV

PPS

ERD

Total

Elimination
or Group(note 1)

Consolidated(note 2)

3,027

618

292

2,064

583

4,495

11,081－

11,081

－

－

－

－

－

－

－

－

－

3,027

618

292

2,064

583

4,495

11,081－

11,081

445

(10)

(33)

(41)

32

497

890

(735)

154

(note 1)
Negative ¥735 million for adjustments of Operating profit (loss) represents corporate expenses not allocated toreportable segments. Corporate expenses are mainly general and administrative expenses note attributable toreportable segments.
(note 2)
Operating profit is adjusted to operating loss of quarterly consolidated statements of income.

12

3. Others(1) Consolidated Net Sales by Division（In Million of Yen）
From April 1 to June 30
Comparison
Unit
FY2022

FY2023Item
QTY

AmountQTY

AmountQTY

AmountTermite control construction*1,000
tsubo

170

1,115

190

1,208

19

92

Under-floor/attic ventilation system

－

－

821

－

712

－

-108

1,126

486

918

405

-208

-81

－

－

920

－

701

－

-219

－

－

3,344

－

3,027

－

-317

Anti-rust equipment installation

Piece

182

223

180

218

-2

-4

Water supply and drainage repair

－

－

172

－

238

－

65

Waterproofing and renovation ofbuildings

－

－

52

－

67

－

15

Others

－

－

99

－

93

－

-5

－

－

547

－

618

－

71

－

－

401

－

292

－

-109

－

－

401

－

292

－

-109

Sales and installation of PV system

－

－

1,628

－

2,034

－

405

Wholesale of PV system

－

－

39

－

7

－

-32

Others

－

－

23

－

22

－

-0

Phtovoltaic Division Total

－

－

1,691

－

2,064

－

372

Sales of Electricity

－

－

1,289

－

583

－

-706

－

－

1,289

－

583

－

-706

Plastic fuelｔ

68,8372,438

68,522

2,376

-315

-61

Power Plant

－

－

753

－

1,227

－

473

Waste liquid treatmentｔ25,679511

23,310481-2,369-29

Landfill

－

－

251

－

227

－

-23

OthersFoundation 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

－

－

117

－

183

－

65

Environmental Resources
Development Division Total

－

－

4,071

－

4,495

－

423

Others

－

－

－

－

－

－

－

Adjustment of intersegment sales

－

－

－

－

－

－

－

Total Net Sales－－

11,346－

11,081

－

-264

Note
1.Descriptions are omitted for items that are handled in such a wide range that it is difficult to grasp their quantity.
2.1,000 tsubo is approximately 3,305.785 ㎡.