Financial Results
for the Third Quarter
From June 1, 2018 to February 28, 2019

ERI Holdings Co., Ltd.
March 29, 2019
Listed on Tokyo Stock Exchange (Code 6083)
http://www.h-eri.co.jp

Summary
Continuous increase in revenue and earnings year-on-yearNew housing starts slightly decreased due to slowdown of new housing for rent by bankcredit tightening targeting rental housing segment.
Revenue increased continuously in all four segments.
In Building Confirmation and Housing Performance Evaluation and its related services,
revenue and earnings increased largely due to full fiscal period inclusion of revenue andearnings of Jyutaku Seinou Hyouka Center Co., Ltd.
In Solution Services, revenue kept generally in good shape but its earnings was decreasedby expanding outsourcing cost.
In other segments, temporary increase in extra verification of structural safety strongly
enhanced sales and earnings.

Copyright © 2019 ERI holdings. All rights reserved.

2

Financial Results for the Third Quarter Ended February 28, 2019

Consolidated results(Millions of yen)

FY2017 3Q

FY2018 3Q(Jun. 2017 – Feb. 2018) (Jun. 2018 – Feb. 2019)

ChangeAmounts

Ratio

Net Sales

9,307

11,200

1,892

20.3%

Operating Profit

386725339

87.9%

Operating Profit Ratio

4.1%

6.5%

--Ordinary Profit

391744352

90.0%

Ordinary Profit Ratio

4.2%

6.6%

--Profit Attributable toOwners of Parent

225

482

256

113.5%

Profit per Share (Yen)

28.93

63.56

34.63

-

* In FY2018 3Q results, data of Jyutaku Seinou Hyouka Center co., Ltd. is the results of Apr. 2018 - Dec. 2018 period.
* In FY2017 3Q results, data of Jyutaku Seinou Hyouka Center co., Ltd. is the results of Oct. 2017 - Dec. 2017 period.

Copyright © 2019 ERI holdings. All rights reserved.

3

Financial Results for the Third Quarter Ended February 28, 2019

Consolidated results by segment(Millions of yen)

ChangeFY20173Q

FY20183Q

Building Confirmation
and Inspection

5,021[54.0%]

5,842[52.2%]

820

Housing Performance
Evaluation and its
related services

2,300[24.7%]

2,757[24.6%]

Solution Services

653[7.0%]

OthersNet Sales Total

Segment
ProfitChange16.3%

579

14445619.9%9699858[7.7%]

205

31.5%

42▲11,332[14.3%]

1,741[15.5%]

409

30.7%

55

129

9,307
[100.0%]

11,200[100.0%]

1,892

20.3%

773

371

Amounts

Ratio* In FY2018 3Q results, data of Jyutaku Seinou Hyouka Center co., Ltd. is the results of Apr. 2018 - Dec. 2018 period.
* In FY2017 3Q results, data of Jyutaku Seinou Hyouka Center co., Ltd. is the results of Oct. 2017 - Dec. 2017 period.

Copyright © 2019 ERI holdings. All rights reserved.

4

Financial Results for the Third Quarter Ended February 28, 2019

Main operating figures | Consolidated
FY2017 3Q(Jun. 2017 – Feb. 2018)

CasesFY2018 3Q(Jun. 2018 – Feb. 2019)

Amounts

Cases（Millions of Yen）

ChangeAmounts

Cases（Millions of Yen）

Amounts（Millions of Yen）

Building Confirmations

45,7652,300

59,3772,650

13,612

350

Final Inspections

41,625

1,843

52,8682,221

11,243378

Detached
Houses17,879585

26,799

750

8,920

165

Collective
Houses

16,351

185

15,000179▲1,351▲6

Detached
Houses

14,759975

20,723

1,234

5,964

259

Collective
Houses

16,408264

18,587

282

2,179

18

Housing Design
Performance
Evaluations
Housing
Construction
Performance
Evaluations* FY2018 3Q includes Jun. 2018 - Feb. 2019 data of Japan ERI Co., Ltd. and Tokyo Bldg-Tech Center Co., Ltd., and Apr. 2018 - Dec. 2018 data of
Jyutaku Seinou Hyouka Center Co., Ltd.
* FY2017 3Q includes Jun. 2017 - Feb. 2018 data of Japan ERI Co., Ltd. and Tokyo Bldg-Tech Center Co., Ltd., and Oct. 2017 - Dec. 2017 data of
Jyutaku Seinou Hyouka Center Co., Ltd.

Copyright © 2019 ERI holdings. All rights reserved.

5Financial Results for the Third Quarter Ended February 28, 2019

Key service figures | Consolidated
FY2017 3Q(Jun. 2017 – Feb. 2018)

Cases

FY2018 3Q(Jun. 2018 – Feb. 2019)

Amounts

Cases（Millions of Yen）

Amounts（Millions of Yen）

ChangeCases

Amounts（Millions of Yen）

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

3,873

1,084

4,102

1,199

229

115

Technical Assessments forLong-life Quality Housings

19,179286

22,112

317

2,933

31

Inspections for Housing DefectLiability Insurance

24,227312

30,739295

6,512▲17592

109

780

143

188

34

132
4,355

1968

158
3,929

3174

26
▲426

126

Evaluation for Compliance with
Energy Consumption Performanceof Buildings
BELS
Certifications

Non-housings
Housings* FY2018 3Q includes Jun. 2018 - Feb. 2019 data of Japan ERI Co., Ltd. and Tokyo Bldg-Tech Center Co., Ltd., and Apr. 2018 - Dec. 2018 data of
Jyutaku Seinou Hyouka Center Co., Ltd.
* FY2017 3Q includes Jun. 2017 - Feb. 2018 data of Japan ERI Co., Ltd. and Tokyo Bldg-Tech Center Co., Ltd., and Oct. 2017 - Dec. 2017 data of
Jyutaku Seinou Hyouka Center Co., Ltd.
* “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 andrenovation. From FY2017 4Q report, the numbers of plan 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

Financial Results for the Third Quarter Ended February 28, 2019

Changes of quarterly results | Consolidated
Quarterly net sales and ordinary profit
Net sales(Millions of yen)

Ordinary profit(Millions of yen)

4500

400
Ordinary profit

350

4000

Net sales

3500

300

3000

250

2500
200
2000
150

1500

100

1000

500500FY20143Q

FY20144Q

FY20151Q

FY20152Q

FY20153Q

FY2015
4Q

Copyright © 2019 ERI holdings. All rights reserved.

FY20161Q

FY20162Q

FY20163Q

7FY20164Q

FY20171Q

FY20172Q

FY20173Q

FY2017
4QFY2018
1Q

FY20182Q

FY20183Q

0Financial Results for the Third Quarter Ended February 28, 2019

Forecasts for FY2018(Millions of yen)

FY2017FY2018Change(Jun. 2017 – May 2018)(Jun. 2018 – May 2019)13,097

14,916

1,818

Operating Profit

690

757

66

Vs. Net Sales

5.3%

5.1％

-Ordinary Profit

702

765

63

Vs. Net Sales

5.4%

5.1％

-Profit Attributable toOwners of Parent

429

488

58

Profit per Share (Yen)

55.37

64.01

8.64

30300Net Sales

Dividends per Share (Yen)

Copyright © 2019 ERI holdings. All rights reserved.

8Financial Results for the Third Quarter Ended February 28, 2019

TopicsFeb. 2019, the cabinet decided to enhance mandatorycompliance with energy efficiency standards down to≧300sqm non-housing.
Three Designated Confirmation and Inspection Bodies in ERI group provide
this new regulation related evaluation services.
2017
Large-bldgs.

(Non-housing)
Filing required(floor area≥2,000 sqm)

Roadmap for
implementation ofmandatorycompliance withenergy efficiency
standards (New build)(Non-housing)
Mandatory compliance(Housing)
Filing required(Non-housing)
Filing required

Medium-bldgs.

(floor area≥300 sqm)

(Non-housing)
Mandatorycompliance(Housing)
Filing required(All type bldgs.)
Accountability
imposedSmall-bldgs.

(floor area<300 sqm)

Copyright © 2019 ERI holdings. All rights reserved.

At present

9Financial Results for the Third Quarter Ended February 28, 2019

Topics
Number of medium building of non-housing
newly obligated to energy efficiency standards is expectedroughly 14,000 per year.
[National new building starts by floor area]2017 official estimate

Less than 300 sqm

New nonhousing starts(Total 56,676)

300 sqm -2,000 sqm

39,286(69.3%)

over 2,000 sqm

Floor area ≥2,000 sqm non-houisng
Obligated to energy efficiency standards
since April 2017.

14,144(25.0%)

3,246(5.7%)

23,417(5.2%)New housing
starts(Total 454,260)

429,098(94.5%)

0%

20%

40%

Copyright © 2019 ERI holdings. All rights reserved.

2,000 sqm > Floor area ≥300 sqm
non-housing
Newly obligated to energy efficiency
standards (cabinet decision).

1,745(0.4%)

60%

80%

10

Floor area ≥300 sqm housing
Local government will tighten review and100% administrative guidance on filed bldgs.
Utilizing evaluation services by registeredevaluation organizations.
Financial Results for the Third Quarter Ended February 28, 2019

ERI Holdings Co., Ltd.
Investor Relations and Public Relations Group
info@j-eri.co.jp

This release contains forward-looking statements about ERI Holdings Co., Ltd.’s future plans, strategies, beliefs and performance thatare not historical facts. Such statements are based on the company’s assumptions and risks, uncertainties and assumptions that,without limitation, relate to economic conditions. Accordingly, ERI Holdings Co., Ltd. wishes to caution readers that actual results may
differ materially from those projected in this release and ERI Holdings Co., Ltd. bear no responsibility for any negative impact causedby the use of this release.

Copyright © 2019 ERI holdings. All rights reserved.

11Financial Results for the Third Quarter Ended February 28, 2019