Summary
V-shape recovery to record high financial results
◼
◼

◼

◼

◼

◼

Business has kept on recovery trend and earned record high profit.
Both new housing starts and GFA of new build non-housing have increased
on a year-on-year comparison.
All the segments turned around to increase in revenue and earnings on a
year-on-year comparison.
Building Confirmation and Inspection and Housing Performance Evaluation
services have been roaring by a recovery of housing sector businessstimulated by a rebound from COVID-19 and a decarbonization subsidy.

Solution services and others have been expanding by bounce back ofbuilding stock related services and steadily increasing energy-saving related
services.
In addition, promotion of e-filing and remote operations, as acountermeasure for COVID-19 stress, and slimmed-down headcount alignwith moderation of seasonal fluctuation in demand have successfully madeour business noticeably profitable.

Consolidated financial results
Previous
fiscal year

Reportingfiscal year

(Jun. 2020–
May. 2021)(Jun. 2021–
May. 2022)

14,397

16,148

1,750

12.2%

Operating Profit

402

1,924

1,521

377.8％

Operating Profit Ratio

2.8%

11.9%

-

-

Ordinary Profit

474

1,986

1,511

318.8％

Ordinary Profit Ratio

3.3%

12.3%

-

-

Profit Attributable to
Owners of Parent

264

1,228

963

363.9％

Profit per Share (Yen)

33.95

156.83122.88361.9％(Millions of yen)

Net Sales

ChangeAmounts

Ratio

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

16,500（Millions of Yen）

64

Solution
Services
Building
Confirmation

15,500

SG&A expenses
Labor cost 167
Commission expenses -29
etc.

2,500

Others

16,000

545

126

2,000

101

85

Cost of sales
Labor cost 239
Work in process -80
etc.

1,500

219

1,750

EnergyConservation
Services

16,147 16,148

15,000965

Housing
Performance
15,666
Evaluation
15,581

1,000

1,924
Breakdown of
the changes insales described in
the left figure.

15,362500

14,500402

14,397 14,397

12.2%

14,000FY 5/2021

Operating Profit

377.8%

0

FY 5/2022

FY 5/2021

FY 5/2022

Consolidated financial results by segment
Previous
fiscal year

Reportingfiscal year

(Jun. 2020–
May. 2021)(Jun. 2021–
May. 2022)

Amounts

Building Confirmation
and Inspection and its
related services

7,849[54.5%]

8,815[54.6%]

965

Housing Performance
Evaluation and its
related services

3,479[24.2%]

3,698[22.9%]

Solution Services

1,442[10.0%]

OthersNet Sales Total(Millions of yen)

ChangeSegment
ProfitChange

12.3%

1,089

772

219

6.3%

388

295

1,527
[9.5%]

85

5.9%

149

67

1,626
[11.3%]

2,106[13.0%]

480

29.5%

363

386

14,397[100.0%]16,148[100.0%]

1,750

12.2%

1,990

1,522

Ratio

Sales breakdown | Consolidated

Solution
services10％

FY 5/2021

FY 5/2022

Others11％

Others13％

Existingbuilding
9％

Newly built
Non-houses
29％
Housing
Performance
Evaluation andits related
services24％

Building
Confirmation
and Inspection
its related
services
55％

Newly built
houses62％

Solution
services
9％

Existingbuilding
9％
Newly built
Non-houses
29％

Housing
Performance
Evaluation andits related
services
23％

Building
Confirmation
and Inspection
its related
services
55％
Newly built
houses62％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%

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

2020

2021

2022

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)

Changesin the cumulative total(from June 2021 to May 2022)

New housing starts

5.0%

Housings for
Owner-Occupation

3.6%

Housings for rent

8.1%

Housings for sales(condo-miniums)▲5.2%

Housings for sales(single-detached)

11.0%

50%
40%
30%
20%
10%
0%

-10%
-20%
-30%
-40%
-50%

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

2020

2021

2022

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

A

B

C

D

E

F

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.

2020

2021

2022

* New housing starts are on the basis of the number of houses , and the results of major house builders are on
the basis of amounts of money which was disclose on each company’s website.

Market trend
Stats of new construction starts in FY 5/2021（June 2021 ～ May 2022）
Housing sector
Detached
HousesNew Housing Starts

Terrace Houses

Collective
HousesTotal

427,533

70,485366,679

864,697

Year-on-Year

6.0％

6.0％

3.7％

5.0％

Proportion

49.4％

8.2％

42.4％

100.0％

Newly Built Floor Spaceof Construction Starts

48,1093,693

19,14070,943Year-on-Year

5.5％

6.3％

5.3％

5.5％

Proportion

67.8％

5.2％

27.0％

100.0％(Unit)(Thousand sqm)

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

Stores

Factories

Warehouses

Medical andWelfareOthers(educational,
lodging and
etc.)

Total

New Housing
Starts

9,905

5,569

6,977

12,4596,240

21,38162,531Year-on-Year

2.9％

8.6％

14.5％

▲10.2%

▲9.8%

8.9%

2.0%

Proportion

15.8%

8.9%

11.2%

19.9%

10.0%

34.2%

100.0%

Newly Built
Floor Space ofConstruction
Starts

6,497

4,113

7,740

13,614

4,313

8,001

44,278Year-on-Year

21.9%

▲3.0%

31.4%

15.9%

▲1.6%

▲8.6%

9.8%

Proportion

14.7%

9.3%

17.5%

30.7%

9.7%

18.1%

100.0%(Unit)(Thousand sqm)

Main operating figures | Consolidated
Previous
fiscal year

(Jun. 2020 – May. 2021)

Cases

Amounts(Millions of Yen)

Reportingfiscal year

Change(Jun. 2021 – May. 2022)

Cases

Amounts(Millions of Yen)

Cases

Amounts(Millions of Yen)

Building Confirmations

69,4083,178

79,977

3,720

10,569542

Final Inspections

70,191

3,048

73,143

3,247

2,952

199

Detached
Houses30,624952

34,603

1,055

3,979

103

Collective
Houses23,742257

24,643

286

901

29

Detached
Houses

29,181

1,576

27,674

1,560▲1,507▲16

Collective
Houses

21,680319

18,158285▲3,522▲34

Housing Design
Performance
Evaluations

Housing
Construction
Performance
Evaluations

Number of Building Confirmationand market share
Number of Building Confirmation (Categories Ⅰ-Ⅲ)

Number of Building Confirmation (Category Ⅳ)

Total market share

Market share of buildings in categories Ⅰ-Ⅲ

Market share of buildings in category Ⅳ
80,00025%

70,00019.1%
60,000

17.2%

17.0%

17.1%

17.7%

17.5%

17.4%

17.9%

18.2%

20%

17.7%

Cases

15.6%
50,000

14.3%
12.1%

11.7%

40,000

12.5%

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%

10%

5%

10,000
2.1%

6.7%

7.3%

15%

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 3/2022 national data has not been published by MLIT yet and our share is unknown.

0%Number of Housing Design Performanceand market share
Housing Design Performance Evaluation of detached houses of ERI group
Housing Construction Performance Evaluation of detached houses of ERI groupMarket share of Housing Design Performance Evaluation of detached houses
Market share of Housing Construction Performance Evaluation of detached houses
45,00040%

33.1%

40,00032.5%

35,00026.4% 26.7% 26.4% 25.8%

Cases

30,00025,00020,000

21.1%

19.4%

22.8%
23.9% 23.7%
20.8%

31.4%

28.1%

24.5% 24.1% 23.8%

24.8%
22.8% 21.7%

20.9%

21.4%

28.6%

35%

29.7%

28.6%

28.7%
26.3%

30%
25%

24.8%

20%
19.1%

18.7%

15,00010,000

15%
10%

5,000

5%

0

0%

* 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.

Key service figures | Consolidated
Previous
fiscal year

(Jun. 2020 – May. 2021)

Cases
Evaluation for Building EnergyStandards

Amounts(Millions of Yen)

Reportingfiscal year

Change(Jun. 2021 – May. 2022)

Cases

Amounts(Millions of Yen)

Cases

Amounts(Millions of Yen)

1,712
(81)

266

4,965
(3,115)587

3,253(3,034)321

Housings

6,794

125

11,215

248

4,421

123

Nonhousings

213

47

343

74

130

27

Inspections for Housing
Defect Liability Insurance

38,033340

33,581374▲4,45234

Technical Assessments forLong-life Quality Housings

24,227344

22,401360▲1,82616(incl. 300 ～ 2,000 sqm)

BELS
Certifications* “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. The numbers of planchange are included. From February 20, 2022, the numbers of integrated application combined with “Housing Performance Evaluations” are excluded.
* 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.
* From FY 5/2020 report, “Evaluation for Compliance with Energy Consumption Performance of Buildings” includes the numbers of plan change.

Forecasts for FY 5/2023
Summary of the forecasts
◼

◼

◼

◼

About sales condition, calm down of strong bounce back from COVID-19 depression in
housing sector and expired Green Housing subsidy would be the major factors of sales
decrease.
About cost forecast, we need advance investment in human resource against significant
increase in workload anticipated by coming crucial regulation reforms in 2025.
All in all, both sales and earnings will decline, however, we will keep double-digit
profitability that was greatly improved in the last fiscal year.
In accordance with improved profitability, we raised an annual ordinary dividend
forecast to ¥40 from ¥30 of the last fiscal year.
(Million yen)

Revenue

Net profit(Million yen)

20,000

4,000

(Yen)
40

Extra dividend
15,0003,000

30

10,0002,000

20Dividend increase
Ordinary dividend
Ordinary dividend

5,000

0

FY2022/5

FY2023/5 forecast

1,000

10

0

0

FY2022/5

FY2023/5 forecast

Forecasts for FY 5/2023
ChangeFY 5/2022

FY 5/2023(Jun. 2021 –May. 2022)(Jun. 2022 –May. 2023)

Net Sales

16,14816,069▲79▲0.5％

Operating Profit

1,924

1,673

▲251

▲13.1％

Operating Profit Ratio

11.9%

10.4％

-

-

Ordinary Profit

1,986

1,682

▲303

▲15.3％

Ordinary Profit Ratio

12.3%

10.5％

-

-

Profit Attributable to
Owners of Parent

1,228

1,106

▲121

▲9.9％

Profit per Share (Yen)

156.83141.26▲15.57▲9.9％(Millions of yen)Amounts

Ratio

New medium-term management plan
Loyally grounded in sustainability-oriented policy, perusing
sustainable growing by core business reinforcement and businessfield expansion
Action on sustainability policy
Sustainability
oriented

Seven Principles

Social contribution

ESG

Our business role for safety and security of housings and buildings is an important part of implementingsocial sustainability policy. Public benefit-oriented policy is our corporate philosophy and business
opportunity.

Challenges : adaptation to regulation reform, scarcity of resource, etc.
Core business
reinforcement

Human capital
investment

Technical skills
educationDX

Due to a significant workload increase by the coming crucial regulation reforms in 2025, we anticipate a big
challenge against human resources in our sector. Advance investment in our human resource andpromotion of DX can be our competitive edge in the marketplace.

Challenges : promotion of services for civil engineering, building stock, etc.
Business fieldenhancement

Human capital
investment

M&A

i-construction

We will continue to challenge to expand our business toward civil and environmental engineering field. M&A
can be a solution to enhance our human capital quickly and efficiently.

New medium-term management plan
Numerical targets of the last fiscal year of the mediumterm management plan
Results of FY5/2022

Targets of FY5/2025

Net sale

16.14 billion yen

20.0 billion yen

Operating profit

1.92 billion yen

2.3 billion yen

Operating profit/ Net sales

11.9％

11.5％

ROE

35.2％

20 - 30％

Dividend pershare

40 yenStable dividend policy（target payout ratio : around 30％）

(incl. 2-3 bln yen M&A contribution)

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 with
Energy Saving Standards.
• Its second quarter sales increased 121％ on a year-on year comparison.

Change in Evaluation for Building Energy Standards（Cases）

Energy Saving Evaluation

2,000 ≦

Energy Saving Evaluation

300

Sales of Evaluation for
Building Energy Standards

2,000

1600

FY2022/05
1200

587million yen

Tightening of regulations
from April 2021

+121％

800

FY2021/05

400

266 million yen
0
1Q

FY2021/5

2Q

3Q

4Q

1Q

FY2022/5

2Q

3Q

4Q

Topics｜Regulatory reform for sustainability“Act of partial revision on building energy saving promotion law
for carbon-neutral initiative, etc.” issued June 17, 2022
１. Accelerate energy saving measures- Bottom-up of energy saving performance and initiative for higher energy saving performance- Promotion of energy saving renovation and renewable energy facilities

２. Promotion of wood use building- Streamlining of fire regulations- Streamlining of building structural regulations

３. Others- Streamlining of Evaluation for Building Energy Standards procedure, etc.

Revision on Building Standard Act
POINT

Rigidification of structural review in Building Confirmation

Revision on Building Energy Saving Promotion Law
POINTCompletion of mandatory Building Energy Standards

Topics｜Revision on Building Standard Act
Scale-down of exception of structural examination on Category-4 building※〈Current regulation〉〈Revised regulation〉
・Adding structural examination by Building
Confirmation and Inspection Bodies

Wooden building
GFA
Floors

≦200㎡

200㎡～
500㎡

＞500㎡

≦3

Category-2
building

Category-2
building

Category-2
building

2

Category-4
building※

Category-4
building※

Category-2
building

1

Category-4
building※

Category-4
building※

Category-2
building※ Exemptions on Category-4 buildings : When licensed architectplan the building, examination of structural requirement, fire
requirement, etc. are exempted.

Potential number ofbuildings that
additionally needs
structural
examination per year
approx. 300,000＊＊Source: MLIT publication, 2022
Estimation by building starts number of FY2020（R2.4～R3.3）

Topics｜Revision on Building Energy Saving
Promotion Law
All new buildings, including housings, must comply Energy Saving
Standards from 2025
Expected volume ofmarket expansion
493,000 bldgs. per year＊

Revised requirement

Non-housing
Large scale
GFA≧2,000sqm

Mandatorycompliancefrom 2019

Medium scale
GFA
300sqm-2,000sqm

Mandatorycompliancefrom 2021

Housing

Mandatorycompliancefrom 2025

Small scale
GFA<300sqm*Source: Number of bldgs. is FY3/2018
data from MLIT 2021 publication

Consolidated financial statements | Assets
Previous
fiscal year

(Millions of yen)

Reportingfiscal year

Change(Jun. 2020 – May. 2021) (Jun. 2021 – May. 2022)

Total assets

6,477

8,574

2,097

Total current assets

4,261

6,484

2,222

2,650

4,910

2,259

Accounts receivable – trade

902

-

▲902

Accounts receivable – tradeand contract assets

-

1,061

1,061

420

248

▲172

Total non-current assets

2,216

2,090

▲125

Property, plant andequipment

531

479

▲51

Total intangible assets

755

654

▲100

Goodwill

432

357

▲75

929

956

26

Cash and deposits

Work in process

Total investments and otherassetsConsolidated financial statements | Liabilities(Millions of yen)Previous
fiscal year

Reportingfiscal year

Change(Jun. 2020 – May. 2021) (Jun. 2021 – May. 2022)

3,453

4,549

1,096

2,361

3,354

993

Accrued expenses

784

1,153

369

Advances received

769

-

▲769

Contract liabilities

-

810

810

1,092

1,194

102

3,024

4,024

1,000

2,989

3,983

994

1,954

2,948

994

6,477

8,574

2,097

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

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.