Summary
Decrease in revenue and earnings year-on-year
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◼

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◼

◼

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Third quarter results was almost on track for the consolidated financial
forecast disclosed July 2019

New housing starts decreased mostly due to the slowdown of new housing
starts for owner-occupation and sales condominiums after the consumption
tax hike on October 1, 2019
In Building Confirmation and Inspection services, revenue decreased due tothe shrink of new building starts of stores and factories
In Housing Performance Evaluation and its related services, revenue increased
due to steady to start constructing housings for sale (single-detached)
In Solution Services, revenue increased due to the acquisition of Kozo Sogo
Research and Development Inc.
In other segments, revenue decreased largely due to the reactionary fall oftemporary structural verification sales rise in the previous fiscal year
The impact of coronavirus (COVID-19) on our business was minimal so far

Consolidated financial results
3Q Previous
fiscal year

3Q Reporting
fiscal year

(Jun. 2018 –Feb. 2019)(Jun. 2019–Feb. 2020)

11,200

11,102▲97▲0.9%

Operating Profit725320▲405▲55.9%

Operating Profit Ratio

6.5％

2.9%

--Ordinary Profit744382▲361▲48.6%

Ordinary Profit Ratio

6.6％

3.4%

--

Profit Attributable toOwners of Parent

482211▲271▲56.2%

Profit per Share (Yen)

63.56

27.62

▲35.94▲56.5%(Millions of yen)

Net Sales

ChangeAmounts

Ratio

Consolidated financial results by segment(Millions of yen)

3Q Previous 3Q Reporting
fiscal year
fiscal year

ChangeSegment
ProfitChange(Jun. 2018 –Feb. 2019)(Jun. 2019–Feb. 2020)

Amounts

Ratio

Building Confirmation
and Inspection

5,842[52.2%]

5,703[51.4%]▲138▲2.4%271▲307

Housing Performance
Evaluation and its
related services

2,757[24.6%]

2,894[26.1%]

137

5.0%

14852

Solution Services

858[7.7%]

978[8.8%]

119

13.9%

70

27Others

1,741[15.5%]

1,525[13.7%]▲215 ▲12.4%▲121▲177

Net Sales Total

11,200[100.0%]

11,102[100.0%]▲97367▲405▲0.9%

Main operating figures | Consolidated
3Q Previous
fiscal year

(Jun. 2018 – Feb. 2019)

Cases

Amounts(Millions of Yen)

3Q Reporting
fiscal year

Change(Jun. 2019 – Feb. 2020)

Cases

Amounts(Millions of Yen)

Cases

Amounts(Millions of Yen)

Building Confirmations

59,3772,650

58,1322,450▲1,245▲200

Final Inspections

52,8682,221

54,859

2,260

1,991

39

Detached
Houses

26,799750

28,338

752

1,539

2

Collective
Houses

15,000179

20,008

201

5,008

22

Detached
Houses

20,723

1,234

24,390

1,375

3,667

141

Collective
Houses

18,587282

15,429240▲3,158▲42

Housing Design
Performance
Evaluations

Housing
Construction
Performance
Evaluations

Key service figures | Consolidated
3Q Previous
fiscal year

(Jun. 2018 – Feb. 2019)

Cases

Amounts(Millions of Yen)3Q Reporting
fiscal year

Change(Jun. 2019 – Feb. 2020)

Cases

Amounts(Millions of Yen)

Cases

Amounts(Millions of Yen)

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

4,102

1,199

3,727

1,088▲375▲111

Technical Assessments forLong-life Quality Housings

22,112317

21,757298

▲355

▲19

Inspections for Housing
Defect Liability Insurance

30,73929530,335279▲404▲16Evaluation for Compliancewith Energy Consumption
Performance of Buildings

780

143724140▲56▲3Nonhousings

1583113026▲28▲5Housings

3,929744,294793655BELSCertifications* “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.

Changes of quarterly results | Consolidated

Net sales

Ordinary profit(Millions of yen )

380

4,500
4,000

350

310

3,500

300

3,000
180
163

161
123

1,500

177

156

138

108

1,000

100

105

53

50

32
3Q

4Q

FY 5/2016

1Q

200
150

120

101
46

500
0250

225

2,500
2,000

400

2Q

3Q

FY 5/2017

4Q

1Q

2Q

3Q

FY 5/2018

4Q

1Q

2Q

3Q

FY 5/2019

4Q

1Q

2Q

3Q

FY 5/2020

0Forecasts for FY 5/2020
ChangeFY 5/2019

FY 5/2020(Jun. 2018 –May 2019)(Jun. 2019 –May 2020)

15,07615,119420.3%

Operating Profit820495▲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 Sales

AmountsRatio

Topics
Our action against the coronavirus (COVID-19)• Promote staggered working hours and work from home
• Admit employees exempted from work due to response to closureof school• Ensure employees stay at home if they have fever or mild flu-likesymptoms• Implement wearing face masks at face-to-face service• Minimize nonessential business trip and promote video conference• Postpone or cancel of events such as seminar for clients, IR seminarand periodic refresher courses for licensed architects

Topics
Coronavirus’ outbreak impact on our business
MLIT’s requests- Request for smooth Final Inspection, Feb. 27, 2020
Delaying in delivery of imported housing equipment occurred due tocoronavirus problem. Designated Confirmation and Inspection Bodies
should act Final Inspection flexibly for incomplete houses on this issue
Final Inspection service has been smooth so far and the impact on ourbusiness results was minimal. But we should carefully watch possible
impact still lie ahead.
- Request for action on periodic refresher courses for licensed architects
against COVID-19 , Feb. 27, 2020
Periodic refresher courses for licensed architects should cancel until
end of April 2020
The impact on our business results was minimal.

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.