Sanix Incorporated : Financial Summary (386KB)

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: 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, Corporate Planning Headquarters, Corporate Planning Department
	Executive officer
Telephone:	[phone]

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)		(Percentages indicate year-on-year changes.)
		Net sales			Operating profit		Ordinary profit	Profit attributable to
					owners of parent
	Three months	Millions of yen		%		Millions of yen		%	Millions of yen	%	Millions of yen	%
	ended
	June 30, 2023	11,081		(2.3)		154		(54.8)		73	(72.9)	63	(63.6)
	June 30, 2022	11,346		2.8		341		-		270	-	174	-
Note: Comprehensive income For the three months ended June 30, 2023:	¥ 98 million [(54.7)%]
		For the three months ended June 30, 2022:	¥217million	[-%]
		Basic earnings		Diluted earnings
		per share			per share
	Three months			Yen				Yen
	ended
	June 30, 2023			1.33				-
	June 30, 2022			3.66				-
(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, 2023	33,642				6,166			18.3		128.58
	March 31, 2023	33,586				6,068			18.0		126.51
Reference: Equity
	As of June 30, 2023:		¥6,146 million
	As of March 31, 2023:		¥6,047 million

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, 2023
Fiscal year ending	0.00
March 31, 2024
Fiscal year ending
March 31, 2024		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, 2024(from April 1, 2023 to March 31, 2024)

								Profit attributable	Basic earnings
	Net sales		Operating profit	Ordinary profit	to owners of	per share
								parent
	Millions of		%	Millions of	%	Millions of	%	Millions of		%
	Yen		Yen	Yen	Yen		Yen
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: None

* 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: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
4. Number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30,2023

As of March 31,2023

48,919,396 shares

48,919,396 shares

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

As of June 30,2023

As of March 31,2023

1,114,983 shares

1,114,983 shares

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

Three months ended June 30, 2023

Three months ended June 30, 2022

47,804,413 shares

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	4
(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, 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 and rising raw materials prices linked to a weaker yen.

In this social environment, guided by its corporate philosophy, "Clean and comfortable environment 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 the residential 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 growth of existing businesses. The Group aims to accelerate its future growth by strategically investing 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 on year), ordinary profit of ¥73 million (down 72.9% year on year) and profit attributable to owners 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 the Tomakomai power plant in April 2023.

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

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