SummaryRevenue grow but earnings decline in Q2◼

◼

◼

◼

◼

◼

Both new housing and non-housing starts shrunk and the number ofapplications of our core business decrease compared to the last Q2.
In Building Confirmation and Inspection and its related services, both revenue
and earnings decrease due to a slow down of application of Building
Confirmation.
In Housing Performance Evaluation and its related services, both revenue andearnings increase largely due to brisk residential complex construction.
In Solution services, revenue largely increase by expanding construction
consulting service, but earnings decreased because it will be posted in thesecond half.
In Others, both revenue and earnings increased due to a steady growth ofenergy-saving related services.
All in all, business has been going within our expectation in Q2.

Consolidated financial results
2Q Previous
fiscal year

2Q Reporting
fiscal year

(Jun. 2022–Nov. 2022)(Jun. 2023–Nov. 2023)

Net Sales

8,391

8,661269

3.2%

Operating Profit

1,062835▲226▲21.4%

Operating Profit Ratio

12.7％

9.6%--Ordinary Profit

1,069843▲225▲21.1%Ordinary Profit Ratio

12.7％

9.7%

--

Profit Attributable toOwners of Parent

645506▲139▲21.6%

Profit per Share (Yen)

82.84

65.60

▲17.24▲20.8%(Millions of yen)

ChangeAmounts

Ratio

Consolidated financial results by segment(Millions of yen)

2Q Previous 2Q Reporting
fiscal year
fiscal year

ChangeSegment
ProfitChange(Jun. 2022 –Nov. 2022)(Jun. 2023–Nov. 2023)

Amounts

Ratio

Building Confirmation
and Inspection and its
related services

4,542[54.1%]

4,364[50.4%]

▲177

▲3.9％

453

▲182

Housing Performance
Evaluation and its
related services

1,815[21.6%]

1,870[21.6%]

543.0％

2468

Solution Services

837[10.0%]

1,028[11.9%]

191

22.8％

▲134

▲151

Others1,196[14.3%]

1,397[16.1%]

201

16.8％

302

97

Net Sales Total

8,391[100.0%]8,661[100.0%]

269

3.2％

868

▲226

Sales breakdown | Consolidated
FY 5/2023 2Q

Others14％
Existingbuilding
8％

Solution
services
10％

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

FY 5/2024 2Q

Building
Confirmation
and Inspection
and its relatedservices
Others54％
3％

Newly built
houses57％

Others16％

Solution
services
12％

Existingbuilding
8％

Newly built
Non-houses
29％

Building
Confirmation
and Inspection
and its related
services50％
Others6％

Newly built
houses58％

Housing
Performance
Evaluation andits related
services22％※ From 2022 full-year results, sales breakdown described in inner circle of the pie chart add “Others”, whose sales are not segmented neither “Newly built houses”, “Newly built nonhouses” nor “Existing buildings”.

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

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.

20222023

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)

80%

60%

40%

20%

Changesin the cumulative total(from Jun. to Nov.)
New housingstarts▲7.1%

Housings for
OwnerOccupation▲12.1%

Housings for
rent

▲2.4%

Housings forsales (condominiums)▲8.2%

Housings forsales (singledetached)

▲8.2%

0%

-20%

-40%-60%

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

2022

2023

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

ABCDEF

250%

200%

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.

20222023* 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 5/2024 2Q（June 2023 ～ November 2023）
Housing sector
DetachedHouses

Terrace Houses

CollectiveHouses

Total

New Housing Starts

188,774

40,547187,182416,503

Year-on-Year▲10.5%

0.8%

▲5.0%

▲7.1%

Proportion

45.3%

9.7%

44.9%

100.0%

Newly Built Floor Spaceof Construction Starts

20,673

2,106

9,767

32,545Year-on-Year▲11.9%

0.6%

▲4.4%

▲9.0%

Proportion

63.5%

6.5%

30.0%

100.0%(Unit)(Thousand sqm)

Market trend
Stats of new construction starts in FY 5/2024 2Q（June 2023 ～ November 2023）
Non-housing sector
Offices

Stores

Factories

Warehouses

Medical andWelfare

New HousingStarts

4,542

2,723

3,049

6,090

Year-on-Year▲9.2%▲10.7%▲18.8%

Proportion

14.6%

8.8%

Newly Built
Floor Space ofConstruction
Starts2,224Year-on-Year
Proportion

Others(educational,lodging andetc.)

Total

3,194

11,43031,028

▲8.2%

▲7.4%

▲4.5%

▲8.4%

9.8%

19.6%

10.3%

36.8%

100.0%

1,924

3,497

6,315

1,912

3,842

19,714▲25.2%▲8.5%▲20.3%▲1.1%▲18.6%▲12.3%▲12.7%

11.3%

9.8%

17.7%

32.0%

9.7%

19.5%

100.0%(Unit)(Thousand sqm)

Main operating figures | Consolidated
2Q Previous
fiscal year

SegmentBusiness(Jun. 2022 – Nov.
2022)Cases
Building
Confirmation
andInspection
and its
relatedservices

Housing
Performance
Evaluationand its
relatedservicesAmounts

2Q Reporting
fiscal year

(Jun. 2023 – Nov.
2023)

(Millions ofYen)

Cases

Amounts

Change(Millions ofYen)

Cases

Amounts(Millions ofYen)

Building Confirmations

41,403

1,989

37,6191,792▲3,784▲197

Final Inspections

35,723

1,565

35,435

1,624

▲228

58

Detached
Houses

18,711603

17,405589▲1,306▲14

Collective
Houses

15,772

196

18,621223

2,849

27

Detached
Houses13,611745

13,447724

▲164

▲20

CollectiveHouses

7,428

143

10,294

208

2,866

65

Technical Assessments forLong-life Quality Housings*

2,873

116

2,493

108

▲380

▲7

Housing Design
Performance
Evaluations
HousingConstruction
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.

Main operating figures | Consolidated
2Q Previous
fiscal year

Segment

Business(Jun. 2022 – Nov.
2022)

Cases
Evaluation for Building EnergyStandards(Millions ofYen)(Jun. 2023 – Nov.
2023)

Cases

Amounts(Millions ofYen)

ChangeCases

Amounts(Millions ofYen)

3,003(2,101)338

2,770(1,852)

318▲233(▲249)▲20Housings

21,304269

38,293424 16,989

154

Nonhousings13124148

31176

Inspections for Housing DefectLiability Insurance*

14,027179

15,033165

1,006▲13(incl. 300 ～ 2,000 sqm)

OthersAmounts

2Q Previous
fiscal year

BELSCertifications* 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) Includeinsurance brokerage, and 3) Include the data of all housing defect liability insurance companies.

Consolidated financial statements | Assets
Previous
fiscal year

(Millions of yen)

2Q reporting
fiscal year

Change(Jun. 2022 – May 2023) (Jun. 2023 – Nov. 2023)

Total assets

10,860

11,105244

Total current assets

8,326

8,620

293

Cash and deposits

6,408

6,650

241

Accounts receivable – tradeand contract assets

1,344

1,305

▲39259270

10Total non-current assets

2,534

2,484

▲49

Property, plant andequipment

770878108

Total intangible assets

642623▲19Goodwill368364▲41,121983▲138

Work in process

Total investments and otherassets

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

2Q reporting
fiscal year

Change(Jun. 2022 – May 2023) (Jun. 2023 – Nov. 2023)

5,782

5,829

46

3,352

3,551

198

Accrued expenses

977909▲68

Contract liabilities

1,035

1,080

44

Total non-current liabilities

2,429

2,277

▲152

5,078

5,275

197

5,035

5,233

197

4,129

4,327

197

10,860

11,105244

Total liabilitiesTotal current liabilities

Total net assets
Total shareholders’ equity

Retained earnings
Total liabilities and net assets

Changes of quarterly results | Consolidated

Forecasts for FY 5/2024
ChangeFY 5/2023

FY 5/2024(Jun. 2022 –May. 2023)(Jun. 2023 –May. 2024)

Net Sales

17,41018,500

1,089

6.3％

Operating Profit

2,326

2,400

73

3.2％

Operating Profit Ratio

13.4％

13.0％

--

Ordinary Profit

2,340

2,400

592.6％

Ordinary Profit Ratio

13.4％

13.0％

--Profit Attributable toOwners of Parent

1,533

1,540

60.4％Profit per Share (Yen)

197.80199.641.84

0.9％(Millions of yen)AmountsRatio

Topics
MLIT reform building inspector system to enhanceframework of Building Confirmation and Inspection◼

License of Qualified Building Regulation Conformity Inspectors is expanded to 2nd-classarchitect, as a “Sub-Building Inspector※.”※ “Sub-Building Inspector” administer Building Confirmation and Inspection ofsmall-size buildings that 2nd-class architects authorized to design.

Potential market*
All buildings（1st class architect can design）

Approx. 500,000 bldgs./year

Small-size buildings（2nd class architect can design）

Over 400,000 bldgs./year* Company estimation based on MLIT published data

Topics
Acquisition the construction consulting firm◼
◼

Acquired 100% ownership : October 2023, Asia Consultant Corporation.
Collaborating with Kozo Sogo Research and Development Inc., we expand and enhancebusiness operations in Kansai region.

Asia Consultant Corporation
Headoffice

Matsusaka-shi, Mie Prefecture

BusinessConstruction consulting,Surveying, etc.

EstablishedJun 2004

Paid-incapital

JPY 10 million

Sales

JPY 202 million（FY ended 3/2023）

Asia Consultant CorporationKozo Sogo Research and Development Inc.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 no
responsibility for any negative impact caused by theuse of this release.