Financial Results
for the First Quarter
From June 1, 2015 to August 31, 2015

ERI Holdings Co., Ltd.
September 30, 2015
Listed on Tokyo Stock Exchange
Code 6083

Copyright © 2015 ERI holdings Co., Ltd. All rights reserved.

1

Financial Results for the First Quarter Ended August 31, 2015

SummaryGrowing net sales and profits comparedto the year-ago quarterNew Housing starts mildly recovered and housing-related sales bounced back.
In mid-to-large-sized buildings (over 500sqm), building confirmation andinspection sales have been steady.

Point System for Energy-Saving Homes related services record strong sales.

Existing building related services have kept good sales shape.

Energy-saving related services, such as BELS (Building Energy-Efficiency
Labeling System) and Energy Pass, have been successfully expanding.
After the revision of Building Standards Law in June 2015, as an alternativeroute of structural calculation review, relatively simple ALLOWABLE STRESSCALCULATION option (Route-2) is growing in building confirmation applicants.
Such additional fees by choosing Route-2 contributed to sales growth.

Copyright © 2015 ERI holdings Co., Ltd. All rights reserved.

2

Financial Results for the First Quarter Ended August 31, 2015

Summary (continued)
Impact of reformed structural calculation review systemPreviously, building confirmation and structural calculation review were one
non-divisible application to designated confirmation and inspection bodies
that delegated structural calculation review to external designated structural
calculation review bodies.
After the revision of Building Standard Law in June, building confirmation andstructural calculation review applications were separated and applicants directly
go to designated structural calculation review bodies.
Structural calculation review fees are deducted from both income and expenseof designated confirmation and inspection bodies, and no impact for bottomline.

Impact of matching TBTC’s account closing date with ERI’s.


Tokyo Bldg-Tech Center Co., Ltd (TBTC) changes account closing date from endof March to end of May. Due to the change, TBTC’s first quarter is consolidated
5 months financial statements from April 1, 2015 to August 31, 2015.
As a result, extended period boosted net sales of Other Service Segment but
TBTC’s low profit results in July and August dragged down operating income.

Copyright © 2015 ERI holdings Co., Ltd. All rights reserved.

3

Financial Results for the First Quarter Ended August 31, 2015

Consolidated results(Millions of Yen)

ChangeFY2014 1Q

FY2015 1Q(Jun. 2014 – Aug. 2014)(Jun. 2015 – Aug. 2015)

2,865（2,593）

2,912（2,806）

47（212）

1.7%（8.2%）

Operating Income▲5495149‐

Operating Income
Ratio

▲1.9%

3.3%

‐

‐

Ordinary Income▲45111

157‐

Ordinary IncomeRatio

▲1.6%

3.8%

‐

‐

Net Income▲4074114‐

Net Income per Share(Yen)

▲5.24

9.50

14.74

‐

Gross Sales(Net Sales *)Amounts

Ratio* Net sales is subtracted peer check fee from gross sales. （Peer check fee is paid to the other bodies through ERI group.) After the revision of
Building Standard Law in June 2015, applicants directly go to the other bodies for peer check, and, from FY 2016, our group sales result in thesame number that was previously net sales. Although in this 1Q, peer check fees due to the applications prior to the revision were included.
Copyright © 2015 ERI holdings Co., Ltd. All rights reserved.

4

Financial Results for the First Quarter Ended August 31, 2015

Consolidated results by segment(Millions of Yen)

ChangeFY20141Q

FY2015
1Q

Building Confirmation
and Inspection(Net Sales*1)

1,736（1,465）［56.5%］

1,580（1,473）［52.5%］▲156（8）

Housing Performance
Evaluation and its
related services

640［24.7%］

739［26.4%］

Others487［18.8%］

Gross Sales Total

2,865［100.0%］*2

Operating
IncomeChange▲9.0%（0.6%）

32115

9915.5%6053592［21.1%］

105

21.6%

1

▲192,912［100.0%］*2

471.7%

95149

AmountsRatio*1 Net sales is subtracted peer check fee from gross sales. （Peer check fee is paid to the other bodies through ERI group.) After the revision ofBuilding Standard Law in June 2015, applicants directly go to the other bodies for peer check, and, from FY 2016, our group sales result in thesame number that was previously net sales. Although in this 1Q, peer check fees due to the applications prior to the revision were included.
*2 Structural ratio［ ］ is calculated using Net sales. （FY2014 1Q ¥2,593million, FY2015 1Q ¥2,806million）
Copyright © 2015 ERI holdings Co., Ltd. All rights reserved.

5

Financial Results for the First Quarter Ended August 31, 2015

Key service figures | Consolidated(Cases)ChangeFY2014 1Q

FY2015 1Q(Jun. 2014 – Aug. 2014)（Jun. 2015 – Aug. 2015）

Building
confirmations

14,767

15,224457

3.1%

Final inspections

11,548

10,674

▲874

▲7.6%

Housing design
performance
evaluations ofdetached house

4,851

5,239

388

8.0%

Housing design
performance
evaluations ofcollective house

4,388

5,601

1,213

27.6%

Amounts

Ratio* All the data on this page, 3months (from June to August) result of Tokyo Bldg-Tech Center Co., Ltd is consolidated for comparison.

Copyright © 2015 ERI holdings Co., Ltd. All rights reserved.

6

Financial Results for the First Quarter Ended August 31, 2015

Key service figures | Consolidated (continued)
ChangeFY2014 1Q
Cases

Amounts（Millions of Yen）

Cases

Amounts（Millions of Yen）

Building confirmations for medium to large
size buildings (over 500 sqm)

1,466

359

130

12

Housing performance evaluations ofdetached houses*15,239

203

388

13

Technical assessments for Long‐Life Quality
Housings*26,05065538▲20Inspections for housing defect liability
insurance*36,179765270Evaluations of seismic capacity and seismic
retrofitting plans4717▲15▲2Structural evaluations of high‐rise buildings( Skyscraper and/or Base isolation)

1923▲19▲31*1 Cases and amounts by housing design performance evaluation.
*2 The number of cases which the certification of Long-Life Quality Housing were issued.
*3 Jutaku Anshin Hosyo’s cases and amounts.
*4 All the data on this page, 3months (from June to August) result of Tokyo Bldg-Tech Center Co., Ltd is consolidated for comparison.
Copyright © 2015 ERI holdings Co., Ltd. All rights reserved.

7

Financial Results for the First Quarter Ended August 31, 2015

Change in quarterly results | Consolidated
Quarterly gross sales and ordinary income
Gross Sales（million ¥）Ordinary Income（million ¥）450

4000
Ordinary Income
Gross sales

400

3500

350
3000

300
250

2500

200
2000
150
1500

100
50

1000

0500

-500-100
FY2011
2Q

FY2011
3Q

FY20114Q

FY2012
1Q

FY20122Q

FY20123Q

FY20124Q

FY2013
1Q

FY20132Q

FY20133Q

FY20134Q

FY20141Q

FY20142Q

FY20143Q

FY2014
4QFY2015
1Q* Before FY 2013, data is financial results announced by JAPAN ERI CO.,LTD.

Copyright © 2015 ERI holdings Co., Ltd. All rights reserved.

8Financial Results for the First Quarter Ended August 31, 2015

Forecasts for FY2015(Millions of Yen)FY2014FY2015(Jun. 2014 – May 2015)(Jun. 2015 – May 2016)

11,949（10,917）

11,741

823

Operating Income

292649357

Vs. Gross Sales

2.4%

5.5%

－Ordinary Income

331643312

Vs. Gross Sales

2.8%

5.5%

－Net Profits attributable to ownersof parent18378360

Net Income per Share (Yen)

2.3748.39

46.01

Dividend per Share (Yen)

30

300

Gross Sales(Net Sales *)Change• Net sales is subtracted peer check fee from gross sales. （Peer check fee is paid to the other bodies through ERI group.) After the revision of
Building Standard Law in June 2015, applicants directly go to the other bodies for peer check, and, from FY 2016, our group sales result inthe same number that was previously net sales.
Copyright © 2015 ERI holdings Co., Ltd. All rights reserved.

9Financial Results for the First Quarter Ended August 31, 2015