SANIX INCORPORATED
Summary of Consolidated Financial Statements
For the Fiscal Year Ended March 31, 2018
[Japanese Standards]

The financial figures in this document are based on Japanese Accounting Standards and accompanying laws. Amounts arerounded off to 1 decimal place. This document is an English translation of the Japanese-language original.

Consolidated Financial Statements for the Fiscal Year ended March 31, 2018
SANIX INCORPORATED
Stock Listed:Tokyo Stock Exchange First Section, Fukuoka Stock Exchange

Code No;

4651

URL:

https://sanix.jp

President and CEO:

Hiroshi Munemasa

Contact:

Kozo Inoue, Director, Management Corporate Officer,
General Manager of Management & Planning Division

1. Business Results – Operating results for the Fiscal Year ended March 31, 2018
(April 1, 2017 to March 31, 2018)(1) Consolidated Operating Results(In Millions of Yen)
Fiscal Year
From April 1 to March 31
FY2017%change

Net Sales······························································

49,993Operating Income ··················································

1,246

Ordinary Income ····················································Net Income ···························································Net Income per Share (¥) ········································FY2016%change(1.9%)

50,955(17.7%)

20.2%

1,036

－

1,019

12.4%

907

－

1,180

183.6%

416－¥24.68

－

¥8.70

－

Net Income per Share, Diluted(¥)······························

－

－

－

－

Return on Equity ····················································

34.4

－

15.4

－

Ratio of Recurring Profit to Net Assets ·······················

3.3

－

2.9

－

Ratio of Operating Income to Net Sales ·····················

2.5

－

2.0

－

(Note) Comprehensive Income ································

1,230

467.9%

216－(2) Consolidated Financial Position(In Millions of Yen)
Fiscal YearAs of March 31
FY2016FY2017
Total Assets ···························································

29,93831,645Net Assets ····························································

4,076

2,845

Shareholders’ Equity Ratio (%) ·······························

13.5%

8.9%

Net assets per share(¥) ···········································¥84.54¥58.86(Reference) Equity Capital ·······································

4,041

2,813

(3) Consolidated Financial Cash Flows(In Millions of Yen)
Fiscal Year
From April 1 to March 31
FY2016FY2017
Cash Flows from Operating Activities·························

2,184

1,668

Cash Flows from Investing Activities ··························

171

(409)

Cash Flows from Financing Activities ·······················(2,156)

1,437

Cash and Equivalents ,End of Period ························

5,083

4,875

2. Dividends
Quarterly Period
Total

1st

2nd

3rd

4th

Quarter

Quarter

Quarter

Quarter

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

AnnualPayoutDividends

Dividend

ratio

to Net Assets

paid(consolidated)(consolidated)

－

－

－

－

－

－

(Dividends per Share)
FY2016 ended March 31,2017 ·································FY2017 ended March 31,2018 ·································FY2018 ended March 31,－

2019(Forecast) ···················

3. Forecasts for Consolidated Business Results (April 1, 2018 to March 31, 2019)(In Millions of Yen)
Fiscal Year
From April 1 to March 31
First Half
Net Sales······························································%change

Full Year

24,3150.6%

50,000%change
0.0%

Operating Income ··················································

868

526.1%

2,190

75.7%

Ordinary Income ····················································

818

－

2,100

106.0%Net Income ···························································

643

－

1,610

36.4%

Net Income per Share (¥) ········································¥13.45* Notes(1) Changes in significant subsidiaries during the period(Changes in scope of consolidations resulting from change in subsidiaries): None
Number of subsidiaries newly consolidated－
Name of subsidiaries newly consolidated－
Number of subsidiaries excluded from consolidation－
Name of subsidiaries excluded from consolidation－¥33.68

(2) Changes in accounting policies and accounting estimates retrospective restatementⅰ) Changes in accounting policies based on revisions of accounting standard: Noneⅱ) Changes in accounting policies other than ones based on revisions of accounting standard: Noneⅲ) Changes in accounting estimates: Noneⅳ) Retrospective restatement: None
(3) Number of issued and outstanding shares (common stock)(Shares)
End of term
FY 2017

FY 2016

Number of issued and outstanding shares ,end of period (including treasury stock)48,919,396

48,919,396

Number of treasury stock at the end of period ······················································

1,113,923

1,113,668

Average number of shares during the period ·······················································

47,805,604

47,805,834(Reference) Business Result-Overview of non-consolidated Operating Results
1. Business Results – Operating results for the Fiscal Year ended March 31, 2018
(April 1, 2017 to March 31, 2018)(1) Non-Consolidated Operating Results(In Millions of Yen)
Fiscal Year
From April 1 to March 31
FY2017%change

FY2016%change

Net Sales······························································

44,888(1.6%)

45,614(19.6%)

Operating Income ··················································

100(83.9%)

621－

Ordinary Income ····················································

425(48.8%)

830－

Net Income ···························································

738

36.6%

540

－

Net Income per Share (¥) ········································¥15.45－¥11.31－Net Income per Share, Diluted(¥)······························

－

－

－

－

(2) Non-Consolidated Financial Position(In Millions of Yen)
Fiscal YearAs of March 31
FY2016FY2017
Total Assets ···························································

25,026

26,538Net Assets ····························································

2,112

1,370

Shareholders’ Equity Ratio (%) ·······························

8.4%

5.2%

Net assets per share(¥) ···········································¥44.19¥28.67(Reference) Equity Capital ·······································

2,112

1,370

* This summary of financial statements is exempt from audit procedure required by Financial instruments
and Exchange Act.
* Note to ensure appropriate use of forecasts:(Note to forecasts)
Forecasts in this document are based on assumptions, prospects and plans as of the date of this document. Actual results may
differ significantly from these forecasts, due to various factors affecting the Company’s business performance, such as change ineconomical conditions. For details of these assumptions, prospects and plans, and for notes appropriate use of forecasts for thebusiness results, please see page 2 of the Attachment.
(Changes in the display method of date)
The display method of date is changed from Japanese calendar to Western calendar, form the Consolidated Financial Statements
for the Fiscal Year ended March 31, 2018

Index of the attachment
1. Information on Business Results & Financial Position for the fiscal year
ended March 31, 2018 ........................................................................................... 2(1) Information on Consolidated Business Results ..................................................................... 2(2) Information on Consolidated Financial Position ..................................................................... 4(3) Information on Consolidated Cash Flows ............................................................................... 5(4) Outlook for the next fiscal year ................................................................................................. 6

2. Basic Position regarding the Choice of Accounting Standards ............................ 8
3. Consolidated Financial Statements and Main Notes to the Statements ............. 9(1) Consolidated Balance Sheets................................................................................................... 9(2) Consolidated Statements of Income and Comprehensive Income ..................................... 11
Consolidated Statements of Income ...................................................................................... 11
Consolidated Statements of Comprehensive Income ......................................................... 12(3) Consolidated Statements of Changes in Net Assets. ...................................................... 13(4) Consolidated Statements of Cash Flows ................................................................................ 15(5) Notes to the Consolidated Financial Statements ................................................................... 17
Notes to the Assumption of a Going Concern ...................................................................... 17

4. Supplement Information .......................................................................................................... 18
Consolidated Net Sales by Division ....................................................................................... 18

2

1. Information on Business Results & Financial Position for the fiscal year
ended March 31, 2018(1) Information on Consolidated Business Results
In the fiscal year ended March 31, 2018 (April 1, 2017 to March 31, 2018), theJapanese economy moved toward recovery with consumer sentiment picking up
against the backdrop of the enhancement of corporate earnings and improvements inthe employment and income situations, despite the fact that uncertainties regarding thepolitical situations overseas continued.
Under

such

circumstances,

the

Group

thoroughly

executed

management

rationalization including a reduction in personnel, consolidating and eliminating stores,
and downsizing logistics and production operations in line with the medium-termbusiness plan that was prepared based on the business environment surrounding thesolar electric power market in the previous consolidated fiscal year, its first fiscal year.
In the current fiscal year, its second fiscal year, the Group newly established the“SE/HS/ES Business Headquarters” and the Company made personnel changes byreassigning part of the workforce from the SE Division to the HS Division and the ES
Division with the aim of establishing a more effective approach to sales activities alongwith more efficient operations for installation work.
As for sales in the fiscal year under review, sales increased in the HS Business
Division and the ES Business Division, where the sales structure was reinforced due toan appropriate personnel allocation, and sales also increased in the Environmental
Resources Development Business Division due to the Power Producer and Supplier(PPS) business. Meanwhile, the impact of the contraction of the solar electric power
market was not averted, and therefore sales in the SE Division declined. As aconsequence, the net sales of the entire Group were ¥49,993 million (down 1.9% year
on year).
In terms of profitability, there was a significant increase in profit in the HS Divisionand the ES Division and a significant fall in selling, general and administrative
expenses with advanced cost reductions as a result of management rationalization
initiatives, meaning that operating income and each income type below turned positive.
As a consequence, for the whole Group, operating income was ¥1,246 million (up20.2% year on year) and ordinary income was ¥1,019 million (up 12.4% year on year).
After a study of the recoverability of its deferred tax assets, the Group recorded
deferred tax assets. Consequently, the Group posted net income attributable to theowners of the parent company of ¥1,180 million (up 183.6% year on year).
Consolidated results of individual divisions for the first three quarters under review
were as follows:

3a. Solar Engineering (SE) Division
In conjunction with the revisions of the legislation for the Feed-In Tariffs (FIT), theGroup expanded the maintenance business associated with solar electric power
related ancillary equipment. However, there was a significant impact due to thecontraction of the market size of the industrial solar electric power business, andconstruction sales for solar electric power systems declined 31.3% year on year. As aconsequence, sales were ¥17,870 million (down 31.9% year on year).
Despite a decline in sales, the Company achieved operating income of ¥1,668
million (down 0.0% year on year) due to management rationalization and cost
reductions, including costs of materials. It should be noted that the Company
recorded an inventory valuation loss of ¥401 million associated with the decrease inprofitability for power conditioners that had been manufactured in house.
b. Home Sanitation (HS) Division
Thanks to reassigning part of the workforce from the SE Division to the HS Division,
the Company reinforced and expanded the sales structure and account managementof the HS Business. As a result, termite extermination increased 21.7% year on year
and underfloor/ceiling ventilation systems increased 68.7% year on year. Baserepair/roof reinforcement construction increased 56.7% year on year. As a result of
the initiatives that succeeded in putting an end to the declining sales, the division’ssales were ¥8,922 million (up 36.0% year on year).
Operating income stood at ¥1,471 million (up 50.3% year on year) due to thecontribution of a significant increase in sales, although fixed expenses rose mainly
due to an increase in personnel expenses.
c. Establishment Sanitation (ES) Division
Similarly to the HS Division, the Company reassigned part of the workforce fromthe SE Division to the ES Division and reinforced the sales structure and focused on
propositions for management companies and owners of buildings and condominiums.
Sales of anti-rust equipment installation, our mainstay product, increased 334.1%
year on year (brand name: Daelman Shock). As a result, net sales were ¥1,444
million (up 39.7% year on year).
Operating income stood at ¥179 million (up 89.8% year on year) due to thecontribution of a significant increase in sales, although fixed expenses rose mainly
due to an increase in personnel expenses.
d. Environmental Resources Development (ERD) Division
Due to a rise in unit prices of waste plastic, plastic fuel sales increased 5.5% year
on year and electricity sales increased 63.0% year on year due to a lift in the numberof service contracts in the Power Producer and Supplier (PPS) business. As aconsequence, sales amounted to ¥21,755 million (up 27.0% year on year).

4

Although there was an improvement in the gross margin ratio, mainly attributable to
the revision of unit prices for the collection of waste plastic and the profitability of thePower Producer and Supplier (PPS) business, operating income stood at ¥972 million(down 5.6% year on year) because repair costs related to the statutory inspection
once every two years at the Tomakomai Power Plant increased.

(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 stood at ¥29,938 million, adecrease of ¥1,707 million compared with the end of the previous consolidated fiscal
year. Total liabilities were ¥25,861 million, a decrease of ¥2,937 million compared witha year earlier. Net assets totaled ¥4,076 million, representing an increase of ¥1,230
million from a year ago. As a consequence, the shareholders’ equity ratio stood at
13.5% as of March 31, 2018.
(The status of Assets)
Current assets came to ¥16,172 million, representing a 7.7% decrease over a year
ago, primarily due to a ¥532 million decrease in notes and accounts receivable-trade,a ¥275 million decrease in products, and a ¥570 million decrease in raw materials
and supplies.
Non-current assets decreased by 2.5% from a year ago, to ¥13,766 million,
primarily reflecting a ¥352 million decrease in tangible fixed assets due to disposal bysale, etc.
(The status of Liabilities)
Current liabilities were ¥23,003 million, representing a 10.1% decrease over a year
ago, primarily reflecting a ¥1,285 million decrease in notes and accounts payable anda ¥1,284 million decrease in short-term loans payable.
Non-current liabilities stood at ¥2,857 million, representing an 11.0% decrease overa year ago, primarily reflecting a ¥158 million decrease in long-term loans payable
and a ¥154 million decrease in accrued retirement benefits.
(The status of Net Assets)
Net assets were ¥4,076 million, representing a 43.2% increase as compared withthe end of the previous fiscal year, primarily reflecting ¥1,180 million in net income
attributable to the owners of the parent company.

5(3) Information on Consolidated Cash Flows
Cash and cash equivalents (hereinafter, “cash”) were ¥5,083 million at the end of the
fiscal year under review, representing a ¥207 million increase from a year earlier.
Cash flows and reasons for changes in cash flows during the period are described
below.
(Net Cash Provided by Operating Activities)
Cash flow from operations of ¥2,184 million (as opposed to the net use of ¥1,668
million in the preceding fiscal year) was primarily the result of a ¥1,308 million
decrease in trades payable. In addition to recording net income before taxes of¥1,019 million, it was due to a ¥947 decrease in inventory and a ¥532 decrease innotes and accounts receivable-trade.
Furthermore, it includes depreciation expenses of ¥709 million and goodwill
amortization of ¥112 million as items excluded from funds.
(Net Cash Provided by Investment Activities)
Cash flow from investing activities was ¥171 million (as opposed to net use of ¥409
million in the preceding fiscal year) due to ¥314 million for the acquisition of property,
plant and equipment. It was also due to a ¥324 million net decrease in term deposits
and net inflow of ¥202 million yen due to the sale of tangible fixed assets.
(Net Cash Provided by Financing Activities)
Cash flow from financing activities decreased by ¥2,156 million (as compared withan increase of ¥1,437 million in the preceding fiscal year). This was chiefly due to a
net decrease of 1,284 million yen in short-term borrowing payable and the repaymentof long-term debt of ¥553 million.

(Reference: The Cash Flow Indicators)
Fiscal Year
FY2013

FY2014FY2015FY2016FY2017

Shareholders’ equity ratio
Shareholders’ equity ratio on a market
price basis
Interest-bearing liabilities ratio to cash
flow

21.3%

14.9%

8.3%

8.9%

13.5%

99.2%

37.6%

32.9%

28.9%

43.8%

1.96

-

-

8.77

5.85

Interest coverage ratio

25.71

-

-

6.76

10.81

(Note) Shareholder’s equity ratio: 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:

Operating cash flow/Interest payment

Interest coverage ratio: 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 endof the fiscal year by the number of shares outstanding at the end of the fiscal year.

6

3. Operating cash flow refers to Cash Flows from Operating Activities according to theconsolidated statement of cash flows. Interest-bearing liabilities are comprised of all liabilities
on the consolidated balance sheet on which interest is payable. Interest expenditure refers tointerest expenses paid according to the consolidated statement of cash flows.

(4) Outlook for the next fiscal year

Under the medium-term business plan (FY2016-FY2018), which sets forth
the further reinforcement of the business base of four Business Divisions forsustainable growth against the backdrop of the solar electric power business,in the fiscal year ended March 31, 2018, its second fiscal year, the Groupreorganized the three businesses of SE, HS and ES into a horizontalorganization and established a more effective approach to sales activities
along with more efficient operations for installation work across thebusinesses concerned. Consequently, the Group increased its profit for two
consecutive fiscal years.
The outlook for the next consolidated fiscal year of the Group is as follows:
In the SE Division, the Company expects a decrease in income against the backdrop
of a decline in work volume, sales unit prices, FIT prices (¥18/kWh) based on themarket trends, etc. Meanwhile, the Company will focus on residential solar electric
power and storage batteries, for which new needs are expected going forward, anddevelop new needs by proposing land utilization for the industrial solar electric powerbusiness. The Company will advance cost reduction initiatives, including a reduction of
personnel expenses and other operating costs, through internal personnel changes andby achieving lower material costs.
In the HS Division, the Company expects to achieve an increase in income byincreasing staff through reassigning part of the workforce from the SE Division to the
HS Division, by unearthing customers and further enhancing the after-sales system forexisting customers. The Company expects that the higher fixed expenses due to theincreased number of staff to address the business expansion will be absorbed by thegrowth in sales, seeking to achieve an increase in income.
In the ES Division, the Company expects to reinforce business partners in thecultivation of sales channels and proposal ability to owners of condominiums, etc. An
increase in income is expected mainly for anti-rust equipment installation. The
Company expects that the higher fixed expenses due to the increased number of staff
to address the business expansion will be absorbed by the growth in sales, seeking toachieve an increase in income.
In the Environmental Resources Development Division, the Company expects higher
sales by increasing the size of the Power Producer and Supplier (PPS) business with7

the policy of the strengthened collaboration of the power business in Hokkaido and thePower Producer and Supplier (PPS) business in Honshu under a new framework. An
increase in income is expected across the entire Division as well. The Company
expects higher profits as the cost of power procurement will decline and repair costs
related to the statutory inspection at the Tomakomai Power Plant will decrease with nostatutory inspection in addition to higher sales.
For the consolidated fiscal year ending March 31, 2019, the SANIX Group aims toachieve sales of ¥50,000 million (up 0.0% year on year) with operating income of¥2,190 million (up 75.7%), ordinary income of ¥2,100 million (up 106.0%) and net
income attributable to owners of the parent of ¥1,610 million (up 36.4%).

8

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 take proper steps toward the adoption of the International Financial ReportingStandards while giving due consideration to the circumstances in Japan and othercountries.

9

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

As of March 31
FY2017FY2016

Assets :Current Assets :Cash and deposits

5,578

5,482

Notes and accounts receivable-trade

6,017

5,485

Merchandise and finished goods

549

273

Work in process-construction

304

209

Raw materials and supplies

4,605

4,035

12

412

Deferred tax assets
Other

997

797

Allowance for doubtful accounts

(544)

(525)

17,522

16,172

Total current assets
Fixed Assets:
Tangible fixed assets :Buildings and structures, net
Less: Accumulated depreciation
Buildings and structures (net of depreciation)
Machinery, Equipment and vehicles, net
Less: Accumulated depreciation
Machinery, Equipment and vehicles (net of depreciation)

8,774

9,328

(7,053)(7,247)

1,720

2,080

11,651

11,715(10,417)(10,526)

1,234

1,189

Land

7,941

7,811

Lease assets, net

1,223

1,294

Less: Accumulated depreciation

(677)

(700)

Lease Assets, net

546

594

Construction in progress

672

77

Other, net
Less: Accumulated depreciation

934

957

(771)

(784)

163

173

12,278

11,926

Goodwill

177

65

Other

148

148

Total Intangible fixed assets

325

214

Investment securities

145

151

Lease and guarantee deposits

669

629

Other, net
Total Tangible fixed assets
Intangible fixed assets :Investments and other assets :Deferred tax assets
Other

52

170

1,293

1,310

Allowance for doubtful accounts

(641)

(636)

Total investments and other assets

1,518

1,625

14,122

13,766

31,64529,938

Total fixed assets
Total Assets

10(In Millions of Yen)

As of March 31
FY2017FY2016

Liabilities :Current Liabilities :Notes and accounts payable-trade

6,365

5,079

Short-term loans payable

12,969

11,685535

140

Current portion of long-term loans payable
Accounts payable

2,644

3,069

Accrued expenses

1,041

1,049

Lease obligations

248

232

Accrued income taxes

428

409

Accrued consumption taxes

275

409

Allowance for resource-recycling expenses

27

27

Other

1,050

900

Total current liabilities

25,58623,003Long-term loans payable

484

325

Lease obligations

396

396

Deferred tax liabilities

31-

Long-term lease deposited45

45

Non-Current Liabilities :

163

9

1,404

1,465

Provision for disposal site closing expenses

538

573

Other

147

41

3,212

2,857

28,79925,861

14,041

14,041

Provision for directors’ retirement benefits
Liability related to retirement benefits

Total non-current liabilities
Total Liabilities

Net Assets :Shareholders’ Equity :Capital stock

1

1

Retained earnings(9,777)(8,597)

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

Total shareholders’ equity

2,784

3,964

Capital surplus

Valuation and translation adjustments :Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

71

76

-

(0)

Foreign currency translation adjustment

(28)

3

Adjustment for retirement benefits (cumulative)

(14)

(2)

Total valuation and translation adjustments

28

76

32

35

Non-controlling Interests
Total Net Assets

2,845

4,076

Total Liabilities and Assets

31,64529,93811(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(In Millions of Yen)

From April 1 to March 31
FY2017FY2016

Net sales

50,95549,993

Cost of Sales

36,81235,948Gross Profit

14,142

14,044

Sales commission

242

309

Advertising expenses

171

285

Provision of allowance for doubtful accounts

43

33

6,725

6,663

85

168

Selling, General and Administrative expenses

Salaries and bonuses
Retirement benefit expenses

850

804

Rent expenses

1,050

942

Depreciation

157

156

Legal welfare expenses

Others

3,780

3,434

Total selling, general and administrative expenses

13,106

12,798

1,036

1,246

Operating Income (Loss)
Non-Operating Income :Interest income

17

13

Dividends income22Land and house rent revenue

63

63

Subsidy income

26

65

Other

98

61

208

205

Interest expenses

236

210

Rent expenses

2

2

Total non-operating income
Non-Operating Expenses :Foreign exchange losses

7

4

Other

92

215

Total non-operating expenses

338

432

907

1,019

Cost of earlier voluntary retirement

177-

Total extra ordinary loss

177-

Income (Loss) Before Income Taxes and Minority Interests

729

1,019

Income Taxes-Current

309

386

Ordinary Income (Loss)
Extra Ordinary Loss :

3

(549)

Total Income Taxes

312

(163)

Net Income

416

1,182

0

2

416

1,180

Income Taxes-Deferred

Net Income (Loss) Belonging to the Non-Controlling Shareholders
Net income (Loss) Belonging to the Shareholders of the Parent
Company12(Consolidated Statements of Comprehensive Income)(In Millions of Yen)

From April 1 to March 31
FY2017FY2016

1,182

Income Before Minority Interests

416

Other Comprehensive Income :Valuation difference on available-for-sale securities

37

4

-

(0)

Foreign currency translation adjustment

(74)

32

Retirement benefit adjustment

(162)

11

Total other comprehensive income

(200)

47

216

1,230

215

1,227

0

2

Deferred gains or losses on hedges

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

13(3) Consolidated Statements of Changes in Net Assets
The previous consolidated fiscal year (April 1, 2016 to March 31, 2017)(In Millions of Yen)

Shareholders’ equity
CapitalsurplusCapital stock
Balance at the beginning ofcurrent period

14,041Retainedearnings
1

Total
shareholders’equityTreasurystock(10,193)(1,481)

2,368

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

416

Purchase of treasury stock

416
(0)

(0)

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

-

-

416

(0)

416

Balance at the end ofcurrent period

14,041

1(9,777)(1,481)

2,784(In Millions of Yen)

Accumulated other comprehensive income
Valuationdifferenceonavailable-f
or-salesecurities
Balance at the
beginning of current
period34

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

-

46

Total
Retirement accumulated Minority
interests
benefitsotheradjustment comprehen-s
ive income
148

229

31

Total net
assets2,629

Changes of items
during the period
Net income
belonging to theshareholders of theparent company
Purchase oftreasury stock
Net changes of
items other thanshareholders’ equity
Total changes of
items during theperiodBalance at the endof current period

416

(0)
37

-

(74)

(162)

(200)

0

(199)

37

-

(74)

(162)

(200)

0

216

71

-

(28)

(14)

28

32

2,845

14

The consolidated fiscal year (April 1, 2017 to March 31, 2018)(In Millions of Yen)

Shareholders’ equity
CapitalsurplusCapital stock
Balance at the beginning ofcurrent period

14,041Retainedearnings
1

Total
shareholders’equityTreasurystock(9,777)(1,481)

2,784

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

1,180

Purchase of treasury stock

1,180
(0)

(0)

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

-

-

1,180

(0)

1,179

Balance at the end ofcurrent period

14,041

1(8,597)(1,481)

3,964(In Millions of Yen)

Accumulated other comprehensive income
Valuationdifferenceonavailable-f
or-salesecurities
Balance at the
beginning of current
period71

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

-

(28)

Total
Retirement accumulated Minority
interests
benefitsotheradjustment comprehen-s
ive income
(14)

28

32

Total net
assets2,845

Changes of items
during the period
Net income
belonging to theshareholders of theparent company
Purchase oftreasury stock
Net changes of
items other thanshareholders’ equity
Total changes of
items during theperiodBalance at the endof current period

1,180

(0)
4

(0)

32

11

47

2

50

4

(0)

32

11

47

2

1,230

76

(0)

3

(2)

76

35

4,076

15

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

April 1 to March 31
FY2017FY2016Net Cash Provided by (used in) Operating Activities :Income before income taxes and minority interests

729

1,019

Depreciation and amortization

668

709

Amortization of goodwill

112

112

Increase (Decrease) in reserve for directors’ retirement benefits

(7)

(154)

Increase (Decrease) in provision for bonuses

(12)

(0)

Increase (Decrease) in allowance for resource-recycling expenses

(9)

(0)

(1)

(24)

Increase (Decrease) in liabilities in retirement

(128)

71

Interest and dividends income

(20)

(15)

Interest expenses

236

210

Increase (Decrease) in allowance for doubtful accounts

Loss (Gain) on sales of tangible fixed assets(2)

3

Increase (Decrease) in notes and accounts receivable-trade

675

532

Increase (Decrease) in inventories

1,704

947

Increase (Decrease) in other current assets

(191)

188

Increase (Decrease) in notes and accounts payable-trade(804)(1,308)

Increase (Decrease) in consumption tax refund receivable

(115)

134

Increase (Decrease) in other current liabilities

(527)

145

Other

(166)

192

Subtotal

2,137

2,763

20

16

Interest expenses paid

(246)

(202)

Income taxes paid

(252)

(396)

Income taxes refund

10

3

1,668

2,184

Payments into time deposits

(659)

(330)

Proceeds from withdrawal of time deposits

725

654

Purchase of tangible fixed assets

(454)

(314)

62

202

Purchase of intangible assets

(25)

(37)

Payments for lease and guarantee deposits

(131)

(21)

Collection of lease and guarantee deposits

71

30Interest and dividends income received

Net cash provided by operating activities

Net Cash Provided by (used in) Investment Activities :Proceeds from sales of tangible fixed assets

0

(12)

(409)

171

Increase (Decrease) in short-term loans payable

2,851(1,284)

Repayments of long-term loans payable

(954)

(553)

Redemption of bonds

(10)

-

Repayments of finance lease obligations

(257)

(262)

Other

(192)

(55)

Net cash provided by financing activities

1,437(2,156)

(39)

8

Other
Net cash provided by investing activities

Net Cash Provided by (used in) Financing Activities :Effect of Exchange Rate Changes on Cash and Cash Equivalents

16

Net Increase (Decrease) in Cash and Cash Equivalents

2,656

207

Balance of Cash and Equivalents at beginning of period

2,218

4,875

Balance of Cash and Equivalents at end of period

4,875

5,083

17

(5) Notes to the Consolidated Financial Statements(Notes to Assumption of Going Concern): None18

4. Supplemental Information
Consolidated Net Sales by Division(In Millions of Yen)

By period
By item

From April 1 to March 31
FY2016FY2017

Changes

24,228

16,647(7,581)

1,889

1,026

(862)

107

196

89

26,225

17,870(8,354)

2,159

2,628

469

743

1,254

570

1,249

1,957

708

2,410

3,081

671

6,562

8,922

2,360

Anti-rust Equipment Installation

120

522

402

Repair of Building Water-woks

348

415

67

Water Proofing of Building

171

123

(48)

Others

393

383

(10)

Commercial PV System
Wholesales of PV Components
OthersSolar Engineering Total
Termite Eradication Service
Under-Roof / Roof Ventilation System
Foundation Repairing/Home Reinforcement
SystemOthersHome Sanitation Division Total

Establishment Sanitation Division Total

1,033

1,444

410

Plastic Fuel

7,160

7,556

396

Generation of Electricity
Industrial Waste (Organic Waste Water
Recycle)

6,806

11,095

4,289

1,768

1,748

(20)

648

654

5

OthersEnvironmental Resources Development
Division Total :

750

701

(48)

17,13321,755

4,622

Total Net Sales

50,95549,993(961)

Final Disposal(note) We have omitted description on the information that is too multifarious to see the exact volume ofitem.