Summary

Corporate earnings continue growing in Q2
◼

◼

◼

◼

◼

Overall business has kept on growing successfully except a part ofdetached housing related services that was adversely affected by ashrink of new housing start.
Segment sales of Building Confirmation and Inspection services,
Solution Services and Others increased but Housing Performance
Evaluation segment sales decreased largely due to expire of Green
Housing Point subsidy.
All segment of earnings increased, and we achieved a record-high Q2profit.
BELS is rapidly expanding in advance to the coming legislation ofenergy saving performance labeling for sale and lease property.
The acquisition of three construction consulting firms will contribute toearnings growth later this fiscal year.

Consolidated financial results
2Q Previous
fiscal year

2Q Reporting
fiscal year

(Jun. 2021–Nov. 2021)(Jun. 2022–Nov. 2022)

Net Sales

7,934

8,391

457

5.8%

Operating Profit

931

1,062

130

14.0%

Operating Profit Ratio

11.7%

12.7%

--

Ordinary Profit

988

1,069

81

8.2%

Ordinary Profit Ratio

12.5%

12.7%

--Profit Attributable toOwners of Parent

601645437.3%

Profit per Share (Yen)

76.84

82.84

6.00

7.8%

(Millions of yen)

ChangeAmounts

Ratio

Consolidated financial results by segment(Millions of yen)

2Q Previous 2Q Reporting
fiscal year
fiscal year

ChangeSegment
ProfitChange(Jun. 2021 –Nov. 2021)(Jun. 2022–Nov. 2022)

Amounts

Building Confirmation
and Inspection and its
related services

4.256[53.6%]

4,542[54.1%]

285

6.7%

635

45

Housing Performance
Evaluation and its
related services

1,969[24.8%]

1,815[21.6%]

▲153

▲7.8%

237

2Solution Services

690[8.7%]

837[10.0%]

147

21.3%

178

Others

1,017[12.8%]

1,196[14.3%]

178

17.5%

204

73

Net Sales Total

7,934[100.0%]8,391[100.0%]

457

5.8%

1,095

130

Ratio

Market trend
Changes in Housing/Non-housing starts (year-on-year rate)
New housing starts

Newly built houses floor space

New non-housing starts

Newly built non-houses floor space

60%
50%
40%
30%
20%
10%
0%-10%-20%-30%-40%

Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov.

2021

2022

Market trend
Changes in new housing starts by categories of housing(year-on-year rate)
Housings for Owner-Occupation

Housings for rent

Housings for sales (condominiums)

Housings for sales (single-detached)

50%
40%

30%

Changesin the cumulative total(from Jun. to Nov.)
New housingstarts▲0.9%

Housings for
OwnerOccupation▲13.9%

Housings forrent

6.4%

Housings forsales (condominiums)

9.1%

Housings forsales (singledetached)

2.3%

20%
10%
0%
-10%
-20%
-30%
-40%
-50%

Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov.

2021

2022

Market trend
Changes in new orders of detached housesby major house builders
New housing starts

AB

C

DE

F

150%

100%50%0%-50%-100%

Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov.

2021

2022

* New housing starts are on the basis of the number of houses , and the results of major house builders are on thebasis of amounts of money which was disclose on each company’s website.

Market trend
Stats of new construction starts in FY 5/2023 2Q（June 2022 ～ November 2022）
Housing sector
DetachedHouses

Terrace Houses

CollectiveHouses

Total

New Housing Starts

210,968

40,237

197,133

448,338

Year-on-Year

▲8.5%

5.0%

7.5%

▲0.9%

Proportion

47.1%

9.0%

44.0%

100.0%

Newly Built Floor Spaceof Construction Starts

23,472

2,093

10,21335,778Year-on-Year▲10.1%

4.8%

10.5%

▲4.2%

Proportion

65.6%

5.8%

28.5%

100.0%(Unit)(Thousand sqm)

Market trendStats of new construction starts in FY 5/2023 2Q（June 2022 ～ November 2022）
Non-housing sector
Offices

Stores

Factories

Warehouses

Medical andWelfare

New Housing
Starts

5,003

3,050

3,756

6,637

Year-on-Year

▲4.7%

8.9%

8.9%

Proportion

14.8%

9.0%

Newly Built
Floor Space ofConstruction
Starts2,975Year-on-Year
Proportion

Others(educational,lodging andetc.)

Total

3,450

11,97333,869

▲2.1%

3.6%

8.1%

3.6%

11.1%

19.6%

10.2%

35.4%

100.0%

2,102

4,389

6,385

2,349

4,382

22,582▲26.3%

6.3%

24.0%

7.4%

7.0%

4.2%

3.1%

13.2%

9.3%

19.4%

28.3%

10.4%

19.4%

100.0%(Unit)(Thousand sqm)

Main operating figures | Consolidated
2Q Previous
fiscal year

Segment

Business(Jun. 2021 – Nov.
2021)

Cases
Building
Confirmation
andInspection
and its
relatedservices

Housing
Performance
Evaluationand its
relatedservicesAmounts

2Q Reporting
fiscal year

(Jun. 2022 – Nov.
2022)

(Millions ofYen)

Cases

Amounts(Millions ofYen)

ChangeCases

Amounts(Millions ofYen)

Building Confirmations

42,154

1,905

41,403

1,989▲75184

Final Inspections

34,4591,444

35,723

1,565

1,264

121

Detached
Houses

18,282563

18,711

603

429

40

Collective
Houses

11,796131

15,772

196

3,976

65

Detached
Houses13,821797

13,611

745

▲210

▲52

Collective
Houses

6,452

107

7,428

143

976

36

Technical Assessments forLong-life Quality Housings*

15,229227

2,873

116 ▲12,356▲111

Housing Design
Performance
Evaluations
Housing
Construction
Performance
Evaluations* “Technical Assessments for Long-life Quality Housings” represents the cases and amounts of “conformance certificate”, which include the cases and amounts of extension and renovation. The numbers of planchange are included. From February 20, 2022, the numbers of integrated application combined with “Housing Performance Evaluations” are excluded.

Main operating figures | Consolidated
2Q Previous
fiscal year

Segment

Business(Jun. 2021 – Nov.
2021)

Cases
Evaluation for Building EnergyStandards*1(Millions ofYen)(Jun. 2022 – Nov.
2022)

Cases

Amounts(Millions ofYen)

ChangeCases

Amounts(Millions ofYen)

2,143(1,300)264

3,003(2,101)338

860(801)

74

Housings*26,280

137

21,304269 15,024

132

Nonhousings

9615131359Inspections for Housing DefectLiability Insurance*3

16,97718214,027

179 ▲2,950▲3(incl. 300 ～ 2,000 sqm)

OthersAmounts

2Q Previousfiscal yearBELSCertifications

24*1 From FY 5/2020 report, “Evaluation for Compliance with Energy Consumption Performance of Buildings” includes the numbers of plan change.
*2 From FY 5/2023 report, “BELS Certifications(Housings)” includes the number of certifications of dwelling unit of collective houses.
*3 Counting rules of “Inspections for Housing Defect Liability Insurance” are as follows. 1) Include Defect Insurance but exclude inspection for insurance firm and Housing Performance Certification, 2) Include
insurance brokerage, and 3) Include the data of all housing defect liability insurance companies.

Sales breakdown | Consolidated
FY 5/2022 2Q

Others13％
Existingbuilding
8％

Solution
services
9％

Newly built
Non-houses
29％
Housing
Performance
Evaluation andits related
services25％

Building
Confirmation
and Inspection
and its related
Othersservices
2％
54％

Newly built
houses61％

FY 5/2023 2Q

Others14％
Existingbuilding
8％

Solution
services
10％

Newly built
Non-houses
31％
Housing
PerformanceEvaluation andits related
services
22％

Building
Confirmation
and Inspection
and its related
Othersservices
3％54％

Newly built
houses57％

Consolidated financial statements | Assets
Previous
fiscal year

(Millions of yen)

2Q reporting
fiscal year

Change(Jun. 2021 – May 2022) (Jun. 2022 – Nov. 2022)

Total assets

8,574

9,844

1,269

Total current assets

6,484

7,555

1,071

Cash and deposits

4,910

5,766

856

Accounts receivable – tradeand contract assets

1,061

1,171

109

248

256

8

Total non-current assets

2,090

2,289

198Property, plant andequipment

479

769

290

Total intangible assets

65469440

Goodwill

357

408

51

956

824

▲132

Work in process

Total investments and otherassets

Consolidated financial statements | Liabilities(Millions of yen)Previous
fiscal year

2Q reporting
fiscal year

Change(Jun. 2021 – May 2022) (Jun. 2022 – Nov. 2022)

4,549

5,501

951

3,354

2,900

▲454

Accrued expenses

1,153

898

▲255

Contract liabilities

810

1,049

239

Total non-current liabilities

1,194

2,601

1,406

4,024

4,343

318

3,983

4,304

321

2,948

3,398

449

8,574

9,844

1,269

Total liabilities
Total current liabilities

Total net assets
Total shareholders’ equity

Retained earnings
Total liabilities and net assets

Changes of quarterly results | Consolidated

Forecasts for FY 5/2023
ChangeFY 5/2022

FY 5/2023(Jun. 2021 –May. 2022)(Jun. 2022 –May. 2023)

Net Sales

16,14816,069▲79▲0.5％

Operating Profit

1,924

1,673▲251▲13.1％

Operating Profit Ratio

11.9%

10.4％

--Ordinary Profit

1,986

1,682

▲303

▲15.3％

Ordinary Profit Ratio

12.3%

10.5％--

Profit Attributable toOwners of Parent

1,228

1,106

▲121

▲9.9％

Profit per Share (Yen)

156.83141.26▲15.57▲9.9％(Millions of yen)AmountsRatio

Topics
Setting rules of energy saving performance labeling forsale and lease property◼

◼

MLIT “Committee for energy saving performance labeling for sale and lease property” isdiscussing a practical rules for the Notice of Building Energy Conservation Act.
Regarding all the housings/building for sale or lease, realtors display energy saving
performance of the property in its real estate ad based on the rules.

Expecting BELS expansion

Energy label for
New label design (Draft) home appliances【Schedule】

April ～ June 2023
Publication of the Notice
April 2024（plan）
Implementation of the Rules

Source : MLIT “Committee for energy saving performance labeling for sale and lease property”

Topics
BELS certification is accelerating◼

◼

The number of BELS certificated from April to November 2022 has drastically increased
compared with the year-earlier period.
BELS market is expected to expand in advance to the coming legislation of energy saving
performance labeling for sale and lease property.

Changes in the number of BELS certifications by ERI group（cases)

Housings

30,000（cases)[Housings]

BELS certifications

Non-housings

83,114200※from April to November 2022
24,000160

18,000120

FY 3/2021
New housing Starts

865,909[Non-housings]
12,000BELS certifications

80516
6,000

※from April to November 2022

40

FY 3/2021
New Non-housing Starts
0Apr.～Nov.
2021

Apr.～Nov.
2022

0Apr.～Nov.
2021

Apr.～Nov.
2022

62,172

Source : The Association for Evaluating and Labeling Housing Performance ” BELS certifications Statistics” ,and MLIT “Construction Starts Statistics”.

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 nothistorical facts. Such statements are based on thecompany’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 noresponsibility for any negative impact caused by theuse of this release.