April 22, 2008


Revision of Forecast for Business Results

Fukuoka, April 22, 2008 - SANIX Inc. (Ticker: 4651, TSE/OSE/FSE, President & CEO: Shin-ichi Munemasa) announced revisions of its earnings forecasts for the full-year, previously announced on February 13, 2008.


1. Revision to Full-year Results Forecast
(1) Consolidated results forecast (April 1, 2007 to March 31, 2008)

iMillions of Yenj
Net Sales
Operating Income
Recurring Profit
Net Income
Previous Forecast
(as of Feb. 13, 2008)
27,900 
1,500 
1,430 
660 
Revised Forecast
26,500 
570 
470 
(2,800) 
Difference
(1,400) 
(930) 
(960) 
(3,460) 
% Change
(5.0%) 
(62.0%) 
(67.1%) 
Results from year before
28,908 
(1,568) 
(1,659) 
(1,930) 

(2) Non-consolidated results forecast (April 1, 2007 to March 31, 2008)

iMillions of Yenj
Net Sales
Operating Income
Recurring Profit
Net Income
Previous Forecast
(as of Feb. 13, 2008)
26,770 
1,590 
1,330 
560 
Revised Forecast
25,480 
630 
340 
(2,920) 
Difference
(1,290) 
(960) 
(990) 
(3,480) 
% Change
(4.8%) 
(60.4%) 
(74.4%) 
Results from year before
27,457 
(1,497) 
(1,650) 
(1,865) 


2. Reasons for the Downward Revision

The full year consolidated sales forecast that was announced last time have been revised downward. This is mainly because the sales in the HS Division have been below the revised forecasted level that was announced last time despite showing a quarter-on-quarter rise although considering the strong sales of house foundation repair and reinforcement service in the division during the third quarter of fiscal 2007, at the announcement last time, the company expected the further increase in their sales during the fourth quarter of fiscal 2007; expansion of target customers by the alliances with building management firms has not yet contributed to the business results in the ES Division; and revenues from the waste plastic processing business have not reached the level before the acceptance of waste plastic was limited in the Environmental Resource Development Division.

Regarding the profits, the full year forecasts for consolidated operating profit and consolidated recurring profit that were announced last time have been revised downward due to the factors responsible for the sales decrease described above.

As a result of the strict review of expected future cash flows in the SANIX Energy Tomakomai Power Plant in the Environmental Resource Development Division and the plastics resources development facilities, which provide the Plant with plastic fuel, a loss due to impairment of 2,500 million yen have been recorded since the actual values of the land owned by the facilities have declined significantly. Accordingly, the full year forecast for consolidated net profit that was announced last time have been revised downward.

The full year forecast for non-consolidated net profit that was announced last time have also been revised accordingly, for the same reasons.



(Note) These forecasts are based on information available as of April 22, 2008. Actual results may be different from forecasts due to various unexpected factors in the future.

For more information, please contact:
Masahiro Shimojo, Director,
Management & Planning Division