Summary

Sales increased but profits decreased largely
due to heavy upfront expenditures◼

◼

◼

Shrink of the new housing starts weigh on services of building
confirmation and housing performance evaluation but total sales
successfully increased largely due to an expansion of solution
and energy saving related services.
Profit wise, however, upfront expenditures such as personnel
increase, office expansion and ICT investment preparing for thelarge regulatory reform in 2025, in addition to a transaction costof M&As, weigh on the profit.
Although we anticipate that a sluggish condition on new housing
starts, we promote necessary investments and actions tocontribute implementation of sustainability measures andpursue JPY 30 billion sales by 2030.

Consolidated financial results
Previous
fiscal year

Reportingfiscal year

(Jun. 2022–May. 2023)(Jun. 2023–May. 2024)

Net Sales

17,41018,022611

3.5％

Operating Profit

2,326

1,991

▲334

▲14.4％

Operating Profit Ratio

13.4%

11.0％

--

Ordinary Profit

2,340

2,020

▲319

▲13.7％

Ordinary Profit Ratio

13.4%

11.2％

--Profit Attributable toOwners of Parent

1,5331,233▲300▲19.6％

Profit per Share (Yen)

197.80159.88▲37.92▲19.2％(Millions of yen)

ChangeAmounts

RatioChange in net sales and operating profit
Net Sales（Millions of Yen）

18,500（Millions of Yen）

3,000

EnergyConservation Services

47

Solution
Services316

Housing
Performance
Evaluation

612

389
30

18,000

Breakdown of
the changes insales describedin the left
figure.

18,321Building
Confirmation522

17,932

18,052 18,022 18,022

2,000
2,326

17,410 17,410

17,000FY 5/2023

3.5%

622

SG&A expenses
Labor cost 162
Office expansion 84
etc.

2,500

Others17,500

Operating Profit

1,500

FY 5/2024

FY 5/2023

Cost of sales
Labor cost 315
BELS plaques 87
etc.

▲14.4%

325

1,991

FY 5/2024

Consolidated financial results by segment
Previous
fiscal year

Reportingfiscal year

(Jun. 2022 –May. 2023)(Jun. 2023–May. 2024)

Amounts

Ratio

Building Confirmation
and Inspection and its
related services

9,093[52.2%]

8,777[48.7%]▲316

Housing Performance
Evaluation and its
related services

3,647[20.9%]

3,617[20.1%]

Solution Services

2,208[12.7%]

OthersNet Sales Total(Millions of yen)ChangeSegment
ProfitChange*

▲3.5％

1,028

▲301

▲29

▲0.8％

436

25

2,730
[15.2%]

522

23.7％

264

▲402,462[14.1%]

2,897[16.1%]

435

17.7％

327

▲1817,410[100.0%]18,022[100.0%]

611

3.5％

2,057

▲334

※ For more accurate segmentation purposes, we partly change a cost distribution procedure on the costs that straddle across segments on both
FY5/2023 and FY5/2024.

Sales breakdown | Consolidated
FY 5/2023

Others14％

Solutionservices
13％

Others7％

Existingbuilding
7％

Newly built
Non-houses
30％Housing
Performance
Evaluation andits related
services21％

Building
Confirmation
and Inspection
and its related
services
52％

Newly built
houses55％

FY 5/2024

Others16％

Solution
services
15％

Others9％

Existingbuilding
8％

Newly built
Non-houses
28％
Housing
Performance
Evaluation andits related
services
20％

Building
Confirmation
and Inspection
and its related
services
49％

Newly built
houses55％

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%

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

2022

2023

2024

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)

Changesin the cumulative total(from June 2023 to May 2024)

Housings for sales (single-detached)

80%

60%

New housing starts▲5.7%

Housings forOwner-Occupation▲10.7%

Housings for rent

▲1.3%

Housings for sales(condo-miniums)▲3.7%

Housings for sales(single-detached)

▲9.5%

40%

20%0%-20%-40%-60%

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

2022

2023

2024

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

ABCDEF

250%

200%

150%

100%

50%

0%-50%-100%

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

202220232024* 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（June 2023 ～ May 2024）
Housing sector
DetachedHouses

Terrace Houses

CollectiveHouses

Total

New Housing Starts

352,843

76,424

376,563805,830

Year-on-Year▲10.0%

4.8%

▲3.2％

▲5.7％

Proportion

43.8%

9.5%

46.7％

100.0％

Newly Built Floor Spaceof Construction Starts

38,545

3,969

19,87562,389Year-on-Year▲11.2％

4.4％

▲3.1％

▲7.9％

Proportion

61.8％

6.4％

31.9％

100.0％(Unit)(Thousand sqm)

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

Stores

Factories

Warehouses

Medical andWelfare

Others(educational,lodging andetc.)

TotalNew HousingStarts

8,505

5,129

5,588

11,414

5,540

21,63357,809Year-on-Year

▲9.6％

▲7.8％

▲18.0％▲7.2％▲10.5％▲3.9％▲7.9％

Proportion

14.7％

8.9％

9.7％

19.7％

9.6％

37.4％

100.0％

Newly Built
Floor Space ofConstruction
Starts

5,853

3,807

7,129

10,486

3,354

7,166

37,794Year-on-Year

9.6％

▲7.8％

▲12.8％▲17.0％▲21.4％▲7.7％▲10.7％

Proportion

15.5％

10.1％

18.9％

27.7％

8.9％

19.0％

100.0％(Unit)(Thousand sqm)

Main operating figures | Consolidated
Previous
fiscal year

Segment

Business(Jun. 2022 – May.
2023)

Cases
Building
Confirmation
andInspection
and its
relatedservices

Housing
Performance
Evaluationand its
relatedservices

Amounts

Reportingfiscal year

(Jun. 2023 – May.
2024)

(Millions ofYen)

Cases

Amounts

Change(Millions ofYen)

Cases

Amounts(Millions ofYen)

Building Confirmations

77,623

3,756

71,601

3,508▲6,022▲248

Final Inspections

74,954

3,424

71,6583,433▲3,296

9

Detached
Houses35,684

1,162

33,186

1,119▲2,498▲43

Collective
Houses29,914375

30,40639549219

Detached
Houses27,6401,482

26,827

1,438

▲813

▲43Collective
Houses23,333383

25,568429

2,23545

Technical Assessments forLong-life Quality Housings*

5,3732204,825214▲548▲6Housing 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
Previous
fiscal year

Segment

Business(Jun. 2022 – May.
2023)

Cases
Evaluation for Building EnergyStandards(Millions ofYen)(Jun. 2023 – May.
2024)

Cases

Amounts(Millions ofYen)

ChangeCases

Amounts(Millions ofYen)

6,004(4,090)673

5,491(3,651)646▲513(▲439)▲27Housings

49,112590

76,623909 27,511

318

Nonhousings

37380494

12132

Inspections for Housing DefectLiability Insurance*35,240

337

31,422307 ▲3,818▲30(incl. 300 ～ 2,000 sqm)

OthersAmounts

Previous
fiscal year

BELSCertifications

113* 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) Include
insurance brokerage, and 3) Include the data of all housing defect liability insurance companies. Note that, 8,428 missing cases of “Inspections for Housing Defect Liability Insurance” has been added on Previous
fiscal year.

Building Confirmation service landscapeNumber of Building Confirmation (Categories Ⅰ-Ⅲ)

Number of Building Confirmation (Category Ⅳ)

Market share of buildings in categories Ⅰ-Ⅲ

Market share of buildings in category Ⅳ

Total market share
80,00025%

70,00060,000

17.2%

17.0%

17.1%

17.7%

17.5%

17.4%

17.9%

18.2%

19.1% 19.2%

19.6%

20%

17.7%

Cases

15.6%
50,000

14.3%

12.1%

11.7%

40,00012.5%

12.7%13.0%

11.2%

11.4%

10.2%

30,00020,000

4.6%

5.0%

6.2%

0

7.4%

7.3%

7.6%

7.7%

7.8%

10.1%

10.7%

11.9%

13.9%

15%

12.4%
10%

5%

10,000
2.1%

6.7%

7.3%

13.4%

2.2%

3.2%

3.3%

3.7%

3.8%

3.7%

4.0%

4.2%

4.3%

* Jyutaku Seinou Hyouka Center Co., Ltd. consolidated in Nov. 2017 is fully included from FY 3/2018 data.
* Sakoken Co., Ltd. Consolidated in Sep. 2020 is fully included from FY 3/2021 data.
* FY 3/2023 national data has not been published by MLIT yet and our share is unknown.

0%Housing Performance Evaluation service landscapeNumber of Housing Design Performance Evaluation of ERI groupMarket share of Housing Design Performance Evaluation of ERI groupMarket penetration rate of Housing Design Performance Evaluation
100,000
30.8%
80,00023.6% 23.5%

22.7%

23.5%

Cases

21.0%
19.3% 19.1%

60,00019.8% 19.9%

22.5%

21.3%

23.0%

22.3% 21.8%
21.7%

23.3%

24.5%
25.4%

26.1%

27.7% 27.8% 28.2%

25.5%
23.1%

20.7% 20.1%

18.2%

40,00032.8%

23.6% 23.6%

35%30%

24.3%

25.0%

25%

20%

15%

13.8%
10%
20,000
5%00%* Jyutaku Seinou Hyouka Center Co., Ltd. consolidated in Nov. 2017 is fully included from FY 3/2018 data.
* Sakoken Co., Ltd. Consolidated in Sep. 2020 is fully included from FY 3/2021 data.
* Market penetration ratio refers to MLIT publication data.

Forecasts for FY 5/2025
ChangeFY 5/2024

FY 5/2025(Jun. 2023 –May. 2024)(Jun. 2024 –May. 2025)

Net Sales

18,022

20,500

2,477

13.7％

Operating Profit

1,991

2,100108

5.5％

Operating Profit Ratio

11.0％

10.2％

--

Ordinary Profit

2,020

2,100

79

4.0％

Ordinary Profit Ratio

11.2％

10.2％

--

Profit Attributable toOwners of Parent

1,233

1,300

66

5.4％

Profit per Share (Yen)

159.88165.986.1

3.8％(Millions of yen)Amounts

Ratio

Forecasts for FY5/2025
The last spurt year preparing for 2025 regulation reform◼

◼

◼

Annual sales will rise over 20 billion yen due to a business expansion byM&As, a partial revision of fee schedule, etc.
Profit wise, however, upfront expenditures preparing for the large
regulatory reform in 2025 will continue to weigh on the profit. Operating
profit will increase but the growth will be limited.
Forecast of annual dividend is 60 yen per share.
(Million yen)

Revenue(Million yen)

22,0002,200

20,0002,100

18,0002,000

16,0001,900

14,0000

FY2024/5

FY2025/5 forecast

1,8000Net profit

FY2024/5

FY2025/5 forecast

Topics - Additional market for Building Confirmation service
14th Comprehensive Decentralization Law, promulgated on June 19, 2024

(Effective during the next six months)

Utilizing confirmation/inspection by Building Confirmation and Inspection
Bodies for the Plan-notification of the buildings of the State, prefectures andmunicipalities with Building-official (Building Standards Act)
Current law

Building owner

BuildingConfirmation
and Inspection
BodiesYes
No

Private(Buildingconfirmation)

Yes
Yes

Building owner

the State,
prefectures andmunicipalities with
Building-official(Plan-notification)

Buildingofficials

Yes

Yes

BuildingConfirmation
and Inspection
BodiesYes

Yes

Administrator

Administrator

Buildingofficials

the State,
prefectures andmunicipalities with
Building-official(Plan-notification)

After the revision
Private(Buildingconfirmation)

Topics
Acquisition of two civil engineering consultant companies
Fukuda Hydrologic Center Co., Ltd.
Sapporo city, Hokkaido

Hydrology and environmental specialist firm◼

◼

Hydrological observation, erosion and sediment control, levee
design and inspection, ecological and biological survey
Chemical analysis of hazardous materials, such as asbestosand PCBs

Kokudo Engineering Consultants Co., Ltd.
Bridge engineering specialist firm◼

◼

Design, maintenance and inspection service
for bridge structures

BIM/CIM modeling service collaborating withbusiness partners in Asian countries

Osaka city, Osaka

Long-term target by 2030
Enhance businesses related to implementation ofsustainability measures⇨ pursue JPY 30 billion sales by 2030 - 30 by 30
Contribution

Energy saving related services

Carbon neutral
Reduction of GHG
emission from miningand production

Circular economy
Contribution

Damage on theecosystem byclimate change

Promotion ofcircular/renewable
resource

Forest resource and woodenarchitecture related services

Sustainablesupply ofresources

Enhancing asource of carbon
sequestration

Nature positive

Sustainabilizing
natural capital bycircular use ofresources

Source: 6th Basic Environmental Plan discussion by Ministry of Environment (2023)

Contribution

Environment/ecosystem
rerated services

Changes of quarterly results | Consolidated

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.