SummaryV-shaped recovery have kept on going
◼

◼

◼

◼

◼

◼

In the second quarter, housing sector has kept remarkable rebound, and it
largely contributed to the recovery of our business.
Both new housing starts and new build GFA of non-housing have been
increasing on a year-on-year comparison.

All the segments turned around to increase in revenue and earnings on ayear-on-year comparison.
M&A of Sakoken, the Point System for Green Housing related services,
insurance proceeds and application of Accounting Standard for Revenue
Recognition impacted positively but temporary.
Second quarter earnings marked a record-high and we revised up theforecasts of annual earnings and dividend.
We should keep an eye on the market condition such as peaking out ofhousing boom as a reaction against coronavirus crisis, soaring price ofconstruction material, delay in MEP supplies, etc.

Consolidated financial results
2Q previous
fiscal year

2Q reporting
fiscal year

(Jun. 2020–Nov. 2020)(Jun. 2021–Nov. 2021)

Net Sales

6,824

7,934

1,109

16.3%

Operating Profit▲78931

1,010-

Operating Profit Ratio▲1.2%

11.7％--Ordinary Profit▲14988

1,002-

Ordinary Profit Ratio

▲0.2%

12.5％

--

Profit Attributable to
Owners of Parent▲33601

635-

Profit per Share (Yen)

▲4.27

76.84

81.11-(Millions of yen)

ChangeAmounts

Ratio

Consolidated financial results by segment(Millions of yen)

2Q previous 2Q reporting
fiscal year
fiscal year

ChangeSegment
ProfitChange(Jun. 2020–Nov. 2020)(Jun. 2021–Nov. 2021)

Amounts

Building Confirmation
and Inspection and its
related services

3,783[55.4%]

4,256[53.6%]

473

12.5%

590

565

Housing PerformanceEvaluation and its
related services

1,769[25.9%]

1,969[24.8%]

200

11.3%

234

200

Solution Services

518[7.6%]

690[8.7%]

172

33.2％

861

Others754[11.1%]

1,017[12.8%]

263

35.0％

131

185

Net Sales Total

6,824[100.0%]7,934[100.0%]

1,109

16.3％

964

1,011

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.

20202021

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)

40%
30%
20%

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

7.2%

Housings for
OwnerOccupation

12.7%

Housings forrent

8.2%

Housings forsales (condominiums)▲14.3%

Housings forsales (singledetached)

14.0%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.

2020

2021

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.

2020

2021

* 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 5/2022 2Q（June 2021 ～ November 2021）
Housing sector
Detached
HousesTerrace Houses

Collective
HousesTotal

New Housing Starts

230,691

38,336

183,366

452,393Year-on-Year

13.1%

6.4%

0.7%

7.2%

Proportion

51.0%

8.5%

40.5%

100.0%

Newly Built Floor Spaceof Construction Starts

26,099

1,998

9,244

37,341Year-on-Year

12.9%6.7%

▲0.1%

9.0%

Proportion

69.9%

5.4%

24.8%

100.0%(Unit)(Thousand sqm)

Market trend
Stats of new construction starts in FY 5/2022 2Q（June 2021 ～ November 2021）
Non-housing sector
Offices

Stores

Factories

Warehouses

Medical andWelfare

New Housing
Starts

5,249

2,801

3,449

6,779

Year-on-Year

9.2%

7.2%

7.2%

Proportion

16.1%

8.6%

Newly Built
Floor Space ofConstruction
Starts4,037Year-on-Year
Proportion

Others(educational,lodging andetc.)

Total

3,329

11,08032,687▲13.4%▲10.6%

9.2%

1.1%

10.6%

20.7%

10.2%

33.9%

100.0%

1,978

3,540

5,945

2,194

4,206

21,900

84.0%

3.7%

22.8%

5.4%

1.2%

▲11.3%

12.1%

18.4%

9.0%

16.2%

27.1%

10.0%

19.2%

100.0%(Unit)(Thousand sqm)

Main operating figures | Consolidated
2Q previous
fiscal year

(Jun. 2020 – Nov. 2020)

Cases

Amounts(Millions of Yen)

2Q reporting
fiscal year

Change(Jun. 2021 – Nov. 2021)

Cases

Amounts(Millions of Yen)

Cases

Amounts(Millions of Yen)

Building Confirmations

33,506

1,541

42,154

1,905

8,648364

Final Inspections

33,796

1,407

34,4591,444663

37

Detached
Houses15,477473

18,282

563

2,805

90

Collective
Houses

12,063132

11,796131▲267▲1DetachedHouses

15,599844

13,821797▲1,778▲47

Collective
Houses

8,529

125

6,452

107

▲2077

▲18

Housing Design
Performance
Evaluations

Housing
Construction
Performance
Evaluations

Key service figures | Consolidated
2Q previous
fiscal year

(Jun. 2020 – Nov. 2020)

Cases

Amounts(Millions of Yen)

2Q reporting
fiscal year

Change(Jun. 2021 – Nov. 2021)

Cases

Amounts(Millions of Yen)

Cases

Amounts(Millions of Yen)

Technical Assessments forLong-life Quality Housings

12,412

176

15,229

227

2,817

51

Inspections for Housing
Defect Liability Insurance

18,162

157

16,977182

1,18525748(-)

119

2,143(1,300)

264

1,395(1,300)

145

Nonhousings

49

796

1547

8Housings

4,333

71

6,280

137

1,947

66

Evaluation for Building EnergyStandards(incl. 300 ～ 2,000 sqm)

BELS
Certifications* “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.
* From FY 5/2020 report, “Evaluation for Compliance with Energy Consumption Performance of Buildings” excludes the numbers of plan change.

Sales breakdown | Consolidated
FY 5/2021 2Q
Others11％
Solution
services
8％

Existingbuilding
8％
Newly built
Non-houses
27％Housing
Performance
Evaluation andits related
services
26％

Building
Confirmation
and Inspection
and its related
services
54％
Newly built
houses65％

FY 5/2022 2Q
Others13％
Solution
services
9％

Existingbuilding
8％
Newly built
Non-houses
28％

Housing
Performance
Evaluation andits related
services25％

Building
Confirmation
and Inspection
and its related
services
54％

Newly built
houses64％

Consolidated financial statements | Assets
Previous
fiscal year

(Millions of yen)

2Q reporting
fiscal year

Change(Jun. 2020 – May 2021) (Jun. 2021 – Nov. 2021)

Total assets

6,477

7,403

925

Total current assets

4,261

5,344

1,082

2,650

3,799

1,148

Accounts receivable – trade902-▲902

Accounts receivable – tradeand contract assets

-

1,125

1,125

420228▲191

Total non-current assets

2,216

2,059

▲157

Property, plant andequipment

531502▲29

Total intangible assets

755706▲49

Goodwill

432393▲38929850▲78

Cash and deposits

Work in process

Total investments and otherassets

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

2Q reporting
fiscal yearChange(Jun. 2020 – May 2021) (Jun. 2021 – Nov. 2021)

3,453

3,890

437

2,361

2,674

313

Accrued expenses

784

870

86

Advances received

769-▲769

Contract liabilities

-863

863

1,092

1,216

124

3,024

3,512

488

2,989

3,474

485

1,954

2,439

485

6,477

7,403

925

Total liabilities
Total current liabilities

Total non-current liabilities
Total net assets
Total shareholders’ equity
Retained earnings
Total liabilities and net assets

Changes of quarterly results | Consolidated

Revised forecasts for FY 5/2022◼

◼

Responding to a strong business recovery, we revised up initial forecast
of FY 5/2022.
We will successfully achieve 1.2-billion-yen operating profit target in themedium-term management plan and expect a record high profit.
（Millions of yen）

Initialforecast（A）

Revisedforecast（B）

Rate ofchange

Change（B-A）

FY 5/2021
Results（％）

15,232

15,810577

3.8%

14,397

Operating Profit

789

1,600

611

102.8%

402

Operating Profit Ratio

5.2%

10.1%--2.8%

Ordinary Profit

825

1,660

834

101.0%

474

Ordinary Profit Ratio

5.4%

10.5%--

3.3%

Profit Attributable toOwners of Parent

492

1,031539

109.6%

264

Profit per Share (Yen)

62.84

131.7368.89-33.95Net Sales

Revised forecast of dividend◼

◼

Responding to a significant revising up of earnings estimates, ingratitude for a warm support from shareholders, we will add 10yen extra dividend to the year-end dividend.
Therefore, including 15-yen interim dividend, annual dividends
were revised upward in total 40-yen.
Change in annual dividends per share40（Yen）

30

30

27

15（Forecast）

Topics｜Energy saving related service
Update on Evaluation for Building Energy Standards• From April 2021, new non-housings building of GFA 300㎡～2,000㎡ must comply withEnergy Saving Standards.
• Its second quarter sales increased 122％ on a year-on year comparison.

Change in Evaluation for Building Energy Standards

Sales of Evaluation for
Building Energy Standards（Cases）

FY2022/2Q

264million yen

Tightening of regulations
from April 2021

+122％
FY2021/2Q

119 million yen
FY2021/5

FY2022/5

Topics｜DX actions
Field-test for remote Building Inspection by BIM utilization• Japan ERI worked with TAKENAKA CORPORATION in their leading model projectof BIM by MLIT program.
• On a tablet device, building inspector reviewed requisite information for
Building Inspection extracted from BIM model and PDF plan drawings.
• Using mobile device and web meeting, Building Inspection is assisted remotely.
On siteUsing Common Data Environment (CDE),
on-side data is transmitted to off-site
inspector.

MR view

Smoke ventilation window, FAR requisite,
non-combustible material citification,
emergency lighting, etc. are inspected.

※ Source : MLIT「the second working group of leading model project of BIM, March 11, 2021」

Remote site

From the Japan ERI headquarter, building
inspector review the information and givean instruct though the CDE.

Topics｜DX actions
Field-test for remote Interim Building Inspection utilizing
BIM and MR• Jutaku Seinou Hyouka Center (SHC) collaborated with ANDPAD Inc. in theirleading model project of BIM by MLIT program.
• The view of on-site image with 3D model (design, structure) projected on themonitor can be shared with a building inspector remotely.
• Field supervisor and inspector can share the findings and the remediation
responses on ANDPAD device.
On siteMR View

Using MR device and wearable camera,
field supervisor and remoted building
inspector jointly inspected the building.

3D model view is projected on theon-site image.

Remote site

From the SHC headquarter, building
inspector reviewed the image andrecorded the findings on ANDPADdrawings.

※ Source: Announcement from ANDPAD Inc. and SHC「Utilizing MR technology and ANDPAD drawings, Interim Building Inspection wastested remotely at ANDPAD HOUSE」

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.