Sanix Incorporated : Consolidated Financial Results for the Three Months Ended June 30, 2021 (Under Japanese GAAP)

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 10, 2021

	Consolidated Financial Results
	for the Three Months Ended June 30, 2021
	(Under Japanese GAAP)
Company name: SANIX INCORPORATED
Listing:	Tokyo Stock Exchange / Fukuoka Stock Exchange
Securities code:	4651
URL:	https://sanix.jp/lang_en/
Representative:	Hiroshi Munemasa, President and Representative Director
Inquiries:	Hiroshi Soga, Executive officer, Division manager of Corporate Planning Division
Telephone:	[phone]

Scheduled date to file quarterly securities report:	August 16, 2021
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, 2021 (from April 1, 2021 to June 30, 2021)

(1) Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
		Net sales		Operating Income		Ordinary Income	Profit attributable to
				owners of parent
	Three months	Millions of yen		%	Millions of yen		%	Millions of yen	%	Millions of yen	%
	ended
	June 30, 2021	11,033		(7.2)	(102)		-		(138)	-	(300)	-
	June 30, 2020	11,893		2.5	784		26.0		755	25.8	663	52.2
Note: Comprehensive income For the three months ended June 30, 2021:	¥(285) million	[-%]
		For the three months ended June 30, 2020:	¥ 653 million	[63.5%]
		Basic earnings	Diluted earnings
		per share		per share
	Three months			Yen			Yen
	ended
	June 30, 2021			(6.30)			-
	June 30, 2020			13.89			-

Note: From the beginning of the first quarter of fiscal year ending March 31, 2022, the Company began adopting the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29. March 31, 2020), etc.

The figures for the first quarter of the fiscal year ending March 31, 2022 are the figures after the application of the relevant accounting standards.

(2) Consolidated financial position

		Total assets		Net assets	Equity-to-asset ratio	Net assets
			per share
	As of	Millions of yen		Millions of yen	%	Yen
	June 30, 2021	34,054		7,807	22.9	162.78
	March 31, 2021	32,940		8,097	24.5	168.84
Reference: Equity
	As of June 30, 2021:	¥7,781 million
	As of March 31, 2021:	¥8,071 million

Note: From the beginning of the first quarter of fiscal year ending March 31, 2022, the Company began adopting the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29. March 31, 2020), etc.

The figures for the first quarter of the fiscal year ending March 31, 2022 are the figures after the application of the relevant accounting standards.

2. Cash dividends

		Annual dividends per share
	First quarter-end	Second quarter-		Third quarter-end		Fiscal year-end		Total
	end
	Yen	Yen		Yen		Yen		Yen
Fiscal year ended	0.00	0.00	0.00	0.00	0.00
March 31, 2021
Fiscal year ending	0.00
March 31, 2022
Fiscal year ending
March 31, 2022		0.00	0.00	0.00	0.00
(Forecast)

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

3. Consolidated financial forecasts for the fiscal year ended March 31, 2022(from April 1, 2021 to March 31, 2022)

								Profit attributable	Basic earnings
	Net sales		Operating Income	Ordinary Income	to owners of	per share
								parent
	Millions of		%	Millions of	%	Millions of	%	Millions of		%
	Yen		Yen	Yen	Yen		Yen
Six months ended
September 30,	23,608		(1.4)	773	(53.6)	652	(58.3)	373		(73.5)	7.82
2021
Full Year	49,730		0.6	2,396	3.0	2,166	3.6	1,540		(21.6)	32.22

Note

1.Revision from the most recently announced forecast of consolidated business results: None

2.From the beginning of the first quarter of fiscal year ending March 31, 2022, the Company began adopting the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29. March 31, 2020), etc.

The figures for the first quarter of the fiscal year ending March 31, 2022 are the figures after the application of the relevant accounting standards.

* 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)

1. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
2. Changes in accounting policies, changes in accounting estimates, and restatement
3. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None

Note :For details, please see 2. Quarterly Consolidated Financial Statements and Main Notes to the Statements (3) Notes on Consolidated Financial Statements (Changes in Accounting Policies) on page 9 of the attachment.

(4) Number of issued shares (common shares)

1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30,2021	48,919,396 shares
As of March 31,2021	48,919,396 shares

1. Number of treasury shares at the end of the period

As of June 30,2021	1,114,743 shares
As of March 31,2021	1,114,693 shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2021	47,804,665 shares
Three months ended June 30, 2020	47,804,953 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, 2021, (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, 2021 ...................	2
(1)	Information of Consolidated Business Results ...........................................................................	2
(2)	Information of Consolidated Financial Position ..........................................................................	5
(3)	Information on the Future Outlook,
	Including the Forecasts of Consolidated Business Results ......................................................	5
2. Quarterly Consolidated Financial Statements and the Primary Notes for the
Three months ended June 30, 2021.........................................................................................	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
	Changes in accounting policies ....................................................................................................	11
	Segment Information, etc. ............................................................................................................	13
3. Others...................................................................................................................................................	16
Consolidated Net Sales by Division................................................................................................	16

2

1. Qualitative Information for the Three months ended June 30, 2021

1. Information of Consolidated Business Results

During the first quarter under review (April 1, 2021 to June 30, 2021), the future of the Japanese economy continued to be uncertain, despite signs of recovery that have been observed reflecting factors such as the measures for the gradual resumption of economic activities, while the impact of the COVID-19 pandemic has remained. In this situation, SANIX INCORPORATED and its consolidated subsidiaries (hereinafter the "Group") continued their respective operations, prioritizing prevention of the infection's spread.

In May 2021, the Group formulated the SANIX Long-Term Vision 2030 to clarify its direction toward 2030 and its goals to achieve a carbon-neutral society and a recycling-based economy. Under the corporate philosophy, "Clean and comfortable Environment for the next generation," we will continue our efforts to create a sustainable society.

Net sales of the Solar Engineering (SE) Division declined reflecting the decline in the number of photovoltaic system installations due to effects of the revision in the FIT System for solar electric power systems. Additionally, in April operations were suspended at the SANIX ENERGY's Tomakomai power plant, a part of the Environmental Resources Development (ERD) Division, due to a legally required biennial inspection. As a result, the Group's consolidated net sales for the first quarter under review came to ¥11,033 million (down 7.2% year on year).

Due to the impact of the decrease in the net sales of the SE Division and the recording of ¥705 million in repair expenses associated with the legally required inspection of the ERD Division's Tomakomai power plant, the operating loss for the entire Group came to ¥102 million (operating income was ¥784 million year on year) and ordinary loss was ¥138 million (ordinary income was ¥755 million year on year). Net loss attributable to owners of parent stood at ¥300 million (net profit attributable to owners of parent was ¥663 million yen year on year).

At the beginning of the first quarter of fiscal year ending March 31, 2022, the Company began applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29. March 31, 2020), etc. In the consolidated business results, the year-on-year increase (decrease) and percent change from the corresponding period of the previous year under the previous accounting basis are presented for reference. For details, please see 2. Quarterly Consolidated Financial Statements and the Primary Notes for the Three months ended June 30, 2021 (3)Notes regarding the Quarterly Consolidated Financial Statements (Changes in Accounting Policies).

The consolidated results of the individual segment for the first quarter under review were as follows: