Financial Results for the First Quarter
From June 1, 2019 to August 31, 2019
ERI Holdings Co., Ltd.
September 30, 2019

Evaluation,Rating,Inspection

Holdings
1

SummaryIncrease in revenue anddecrease in earnings year-on-year








New housing starts decreased mostly due to slowdown in housing for rent
In Building Confirmation and Inspection services, revenue decreased largely
due to shrink of housing for rent
In Housing Performance Evaluation and its related services, revenue increased
due to rise in housings for owner-occupation and sale
Brisk due diligence service drove a revenue of Solution Services
In other segments, Evaluation for Compliance with Energy Consumption
Performance of Buildings and Structural Evaluation service pushed up revenuegrowth.
Increase in upfront investment, such as investment in human resources andreplacement of PC/OS (Windows10), put pressure on operating profit
Temporary insurance proceeds enhanced ordinary profit
Copyright © 2019 ERI holdings. All rights reserved2Consolidated financial results
ChangeFY2018 1Q

FY2019 1Q(Jun. 2018 –Aug. 2018)(Jun. 2019–Aug. 2019)

Net Sales

3,523

3,687

164

4.7%Operating Profit

12550▲74▲59.7%

Operating Profit Ratio

3.6%

1.4%

--

Ordinary Profit

138105▲33▲24.0%

Ordinary Profit Ratio

3.9%

2.9%

--Profit Attributable toOwners of Parent

7263▲8▲12.2%

Profit per Share (Yen)

9.52

8.38

▲1.14

▲12.0%(Millions of yen)AmountsRatio

Copyright © 2019 ERI holdings. All rights reserved3Consolidated financial results by segment
ChangeFY2018 1Q

FY2019 1Q(Jun. 2018 –Aug. 2018)(Jun. 2019–
Aug. 2019)

Building Confirmation
and Inspection

1,937[55.0%]

1,915[51.9%]▲22Housing Performance
Evaluation and its
related services

871[24.7%]

969[26.3%]

Solution Services

226[6.4%]

OthersNet Sales Total(Millions of yen)Segment
ProfitChange▲1.1%

76▲1029711.2%

2015296[8.0%]

69

30.5%

1930

488
[13.9%]

507[13.8%]

193.9%▲50▲193,523[100.0%]3,687[100.0%]

164

4.7%

66

▲74Amounts

Ratio

Copyright © 2019 ERI holdings. All rights reserved4Main operating figures | Consolidated
FY2018 1Q(Jun. 2018 – Aug. 2018)

CasesAmounts(Millions of Yen)FY2019 1Q(Jun. 2019 – Aug. 2019)

Cases

Amounts(Millions of Yen)

ChangeCases

Amounts(Millions of Yen)

Building Confirmations

20,176935

20,224

871

48

▲64

Final Inspections

16,482666

17,349

699

867

33

Detached
Houses

9,011

254

9,855

266

844

12

Collective
Houses

5,409

60

6,316

71

907

11

Detached
Houses

6,223

372

7,748

435

1,525

63

Collective
Houses

4,441

64

6,081

83

1,640

19

Housing Design
Performance
Evaluations

Housing
Construction
Performance
Evaluations

Copyright © 2019 ERI holdings. All rights reserved

5Key service figures | Consolidated
FY2018 1Q(Jun. 2018 – Aug. 2018)

Cases

Amounts(Millions of Yen)FY2019 1Q(Jun. 2019 – Aug. 2019)

Cases

Amounts(Millions of Yen)

ChangeCases

Amounts(Millions of Yen)

Building Confirmations for
medium to large sizebuildings (over 500 sqm)

1,498

436

1,395

401▲103▲35

Technical Assessments forLong-life Quality Housings

7,797

112

7,740105▲57▲7Inspections for Housing
Defect Liability Insurance

10,75799

10,01194▲772▲6Evaluation for Compliancewith Energy Consumption
Performance of Buildings

2875125649▲31▲2Nonhousings

518284▲23▲4Housings

1,617241,29521▲322▲3BELScertifications* “Building Confirmations for medium to large size buildings (over 500 sqm)” includes the numbers of plan change.
* “Technical Assessments for Long-life Quality Housings” represents the numbers and amounts of conformance certificate, which includes the numbers and amounts of extension and renovation. The numbers ofplan change is included.
* Counting rules of “Inspections for Housing Defect Liability Insurance” is as follows. 1) Including Defect Insurance but excluding inspection for insurance firm and Housing Performance Certification, 2) Including
insurance brokerage, and 3) Including the data of all housing defect liability insurance companies.
• “Evaluation for Compliance with Energy Consumption Performance of Buildings” excludes the numbers of plan change.

Copyright © 2019 ERI holdings. All rights reserved

6Changes of quarterly results | Consolidated

Net sales

Ordinary profit（Millions of yen）

4,500

400
380

4,000

350
310

3,500

300

3,000
227

2,500

190

2,000
1,500

250

225

138

123

111

200

177
161

163

150

108
101

105

100

1,000

53

46

32

50

500

00
1Q

2Q

3Q

'16/5

4Q

1Q

2Q

3Q

'17/5

4Q

1Q

2Q

3Q

'18/54Q

1Q

2Q

3Q

'19/5

4Q

1Q
'20/5

Copyright © 2019 ERI holdings. All rights reserved

7Forecasts for FY2019
ChangeFY2018

FY2019(Jun. 2018 –May 2019)(Jun. 2019 –May 2020)

15,07615,119420.3%

Operating Profit

820495▲324▲39.6%

Operating Profit Ratio

5.4%

3.3%

--Ordinary Profit

845530▲314▲37.2%

Ordinary Profit Ratio

5.6%

3.5%

--Profit Attributable toOwners of Parent

523286▲236▲45.2%

Profit per Share (Yen)

68.94

37.72

▲31.22▲45.3%(Millions of yen)

Net SalesAmountsRatio

Copyright © 2019 ERI holdings. All rights reserved

8Topics
July 2019, “Consultative Body of BIM Promotion for
Building Confirmation” was established by academic,business, and governmental circles【Action plan】• Setting up standard descriptions on drawings for Building Confirmation• Making guide book to incorporate standard descriptions in BIM software• Setting up specifications for viewer software of BIMetc.

Chair: Prof Shuichi Matsumuraof Tokyo University

Opening remarks by Jun Manabe of Director of Housing Bureau MILT
Photo credit, NIKKAN KENSETSU SANGYO SHINBUN.CO.LTD.
Copyright © 2019 ERI holdings. All rights reserved

9Contact
ERI Holdings Co., Ltd.
Investor Relations and Public Relations Group
E－Mail ｜ info@h-eri.co.jp
https://www.h-eri.co.jp/
This release contains forward-looking statements
about ERI Holdings Co., Ltd.’s future plans, strategies,
beliefs and performance that are not historical facts.
Such statements are based on the company’s
assumptions and risks, uncertainties andassumptions that, without limitation, relate toeconomic conditions. Accordingly, ERI Holdings Co.,
Ltd. wishes to caution readers that actual results
may differ materially from those projected in thisrelease and ERI Holdings Co., Ltd. bear no
responsibility for any negative impact caused by theuse of this release.

Copyright © 2019 ERI holdings. All rights reserved10