Financial Results
for the Second Quarter
From June 1, 2017 to November 30, 2017

ERI Holdings Co., Ltd.
January 17, 2018
Listed on Tokyo Stock Exchange (Code 6083)
http://www.h-eri.co.jp

Contents
1. Results for the second quarter of the fiscal year ending May 2018
2. Forecasts for the fiscal year ending May 2018
3. Topics
Acquisition of Jyutaku Seinou Hyouka Center., Ltd.
External wall inspection with UAVs
Revision in Building Lots and Buildings Transaction Business Act（effective on April. 1, 2018)

4. Progress in medium-term management plan
Strengthen profitability of existing core business
Enhance investment in new growth business
Expand business sphere in new business fields

Copyright © 2018 ERI holdings. All rights reserved.

2

Financial Results for the Second Quarter Ended November 30, 2017

1. Results for the second quarter of the fiscal year ending May 2018

Summary
Increase in revenue and earnings year-on year
Incorporating M&A impact into full-year earnings forecasts










From Q1, new housing starts has been in a downward trend consecutively.
In Building Confirmation and Inspection services, number of Building Confirmation decreased,
but year-on-year revenue increased by a benefit from fee schedule revision.
In Housing Performance Evaluation, increase of Construction Performance Evaluation madeup for decrease of Design Performance Evaluation.
In Energy Saving related services, Evaluation for Compliance with Energy Consumption
Performance of Buildings started up but the demand was slower-than-expected,
but year-on-year revenue increased by expanding BELS service.
In Solution Services, Due Diligence service was in good shape.
Acquisition of Share transfer of Jyutaku Seinou Hyouka Center Co., Ltd. in November leads tolarge share up in detached houses services.

Copyright © 2018 ERI holdings. All rights reserved.

3

Financial Results for the Second Quarter Ended November 30, 2017

1. Results for the second quarter of the fiscal year ending May 2018

Consolidated results(Millions of yen)

FY2016 2Q

FY2017 2Q(Jun. 2016 – Nov. 2016) (Jun. 2017 – Nov. 2017)

ChangeAmounts

Ratio

Net Sales

5,605

5,818

212

3.8%

Operating Profit

135

206

71

53.2%

Operating Profit Ratio

2.4%

3.6%

-

-

Ordinary Profit

140

214

74

52.7%

Ordinary Profit Ratio

2.5%

3.7%

-

-

Profit Attributable to
Owners of Parent

80

120

39

49.4%

10.32

15.42

5.1

-

Earnings per Share (Yen)

Copyright © 2018 ERI holdings. All rights reserved.

4

Financial Results for the Second Quarter Ended November 30, 2017

1. Results for the second quarter of the fiscal year ending May 2018

Consolidated results by segment(Millions of yen)

ChangeFY20162Q

FY2017
2Q

Building Confirmation
and Inspection

3,073［54.8%］

3,143[54.0%]

69

Housing Performance
Evaluation and its
related services

1,424［25.4%］

1,420[24.4%]

Solution Services*398［7.1%］

OthersNet Sales Total

Operating
ProfitChange

2.3%

252

102

▲3

▲0.3%

▲35

▲29

439
[7.6%]

41

10.4%

17

7

709
［12.7%］

815[14.0%]

105

14.9%

▲27

▲7

5,605
［100.0%］5,818[100.0%]

212

3.8%

206

71

Amounts

Ratio* “Solution Services” split off from “Others” as an independent segment due to its growing importance in 1Q FY2016.
In addition, TBTC’s services, solely included in “Others” previously, divided into each segment.

Copyright © 2018 ERI holdings. All rights reserved.

5

Financial Results for the Second Quarter Ended November 30, 2017

1. Results for the second quarter of the fiscal year ending May 2018

Trends in housing market
Changes in new housing starts by category of housings New housing starts has
been in a downward
trend.
 Accumulated changes in
the first half stats are as
follows.

( an average of the past two months, including present month )Housings for Owner-Occupation

Housings for rent

Housings for sales(Condominiums)

Housings for sales(Single-detached)
40%
30%

New housing
starts-1.8%

Housings for
OwnerOccupation-4.7%

Housings for rent

-3.5%

0%

Housings forsales(condominimums)

+9.0%

-10%

Housings forsales(singledetached)

New housing starts

20%
10%

-20%

+2.4%

*Cumulative contrast of our first halfof fiscal year (from Jun. to Nov.)

-30%
-40%

Copyright © 2018 ERI holdings. All rights reserved.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
2016
2017

6

Financial Results for the Second Quarter Ended November 30, 2017

1. Results for the second quarter of the fiscal year ending May 2018

Trends in housing market
 Detached house sales ofmajor house builders
come up against visible
downward trend.
 Major house builders
headed for the businessof higher quality andupper price housing.

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

A

B

C

D

E

F

40%
30%
20%
10%
0%
-10%
-20%
-30%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

2016

2017

*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.

*Only the chart of new housing starts is an average of the past two months, including present month.

Copyright © 2018 ERI holdings. All rights reserved.

7

Financial Results for the Second Quarter Ended November 30, 2017

1. Results for the second quarter of the fiscal year ending May 2018

Breakdown of Building Confirmation
FY2017 2Q Japan ERI’s results of Building Confirmation by category of buildings. (exc. plan change cases)(Cases, Millions of Yen）

Non-housing

Housing

Others

Total(Educations, Lodgings and more）

Hospitals, Welfares

Factories, Warehouses

Offices, StoresCollective Houses

Detached Houses
14,724
-5.0%

3,583
-3.0%

1,876
-5.0%

1,075
-2.6%

552
-18.5%

808
23.7%

22,618
-4.1%

65.1%

15.8%

8.3%

4.8%

2.4%

3.6%

100.0%

316.5
-5.2%
0.1%

318.6
6.0%

255.6
9.1%

252.2
93.8
7.5%
-17.3%
5.7%

140.1
17.5%

1,377.1

23.0%
23.1%
Proportion（Reference; June 2017 - November 2017)
Growth rate of national-2.7%
newly built floor space(construction starts)
61.8%
Proportion（Reference; April 2017 - September 2017)
Number of national
289,319
building confirmation-2.5%
Year-on-Year

18.6%

18.3%

6.8%

10.2%

100.0%

0.3%

12.9%

-14.2%

15.2%

0.5%

9.2%

14.3%

4.8%

9.9%

100.0%

Number of Building Confirmation

Year-on-Year
Proportion
Net Sales
Year-on-Year

Copyright © 2018 ERI holdings. All rights reserved.

8

3.1%

Financial Results for the Second Quarter Ended November 30, 2017

1. Results for the second quarter of the fiscal year ending May 2018

Sales breakdown | Consolidated
FY2016FY2017 2Q
Others,14%

Others,12%

Solution
Services,8%

Housing
Performance
Evaluation andits related
services,
25%

Existingbuildings,
8%

Existingbuildings,
8%

Newly built
non-houses,
33%

Newly built
houses,59%

Copyright © 2018 ERI holdings. All rights reserved.

Solution
Services,
8%

Building
Confirmation
and Inspection,
55%

Housing
Performance
Evaluation andits related
services,
24%

9

Newly built
non-houses,
34%

Newly built
houses,58%

Building
Confirmation
and Inspection,
54%

Financial Results for the Second Quarter Ended November 30, 2017

1. Results for the second quarter of the fiscal year ending May 2018

Main operating figures | Consolidated(Cases)

FY2016 2Q

FY2017 2Q(Jun. 2016 – Nov. 2016) (Jun. 2017 – Nov. 2017)

ChangeAmounts

Ratio

Building Confirmations

31,23530,249

▲986

▲3.2%

Final Inspections

23,28923,261▲28▲0.1%

Housing Design Performance
Evaluations of Detached House

10,602

9,929

▲673

▲6.3%

Housing Design Performance
Evaluations of Collective House

13,154

10,800▲2,354▲17.9%

Copyright © 2018 ERI holdings. All rights reserved.

10

Financial Results for the Second Quarter Ended November 30, 2017

1. Results for the second quarter of the fiscal year ending May 2018

Key service figures | Consolidated
FY2017 2Q

Change in previous year

Amounts

Cases（Millions of Yen）

Cases

Amounts（Millions of Yen）

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

2,680

751

▲112

47

Housing Performance Evaluations ofdetached houses*1

9,929

351

▲673

▲24

Technical Assessments for Long-life Quality
Housings*2

11,810

186

▲564

▲6

Inspections for Housing Defect Liability
Insurance*3

12,373

146

▲360

▲9

Evaluations of Seismic Capacity andSeismic Retrofitting Plans

76

24

▲4

▲2

Structural Evaluations of High-rise Buildings(Skyscraper and/or Base isolation)

67

75

▲18

▲32

*1 Cases and amounts by housing design performance evaluation.
*2 The number of cases which the certification of Long-Life Quality Housing were issued.
*3 Jutaku Anshin Hosyo’s cases and amounts.

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11

Financial Results for the Second Quarter Ended November 30, 2017

1. Results for the second quarter of the fiscal year ending May 2018

New services operating figures | Consolidated(Cases)

FY2016
2Q

ChangeFY20172Q

Amounts

Ratio

Route-2 Structural Examination*1

464

444

▲20

▲4.3%

Pre-completion Tentative Approval*1

121

57

▲64

▲52.9%

Assessment of Compliance with the BuildingStandard Law services*2

42

36

▲6

▲14.3%

BELS certification (Non-housings) *3

40

60

20

50.0%

1,321*5

3,146

1,825

138.2%

188

74

▲114

▲60.6%

BELS certification (Housings) *3
Energy Pass certification*4*1 The service started responding to the revision of Building Standard Law in June 2015.
*2 The service started responding to the release of “Guideline for conformity inspection of Building Standard Law on existing buildings
with no Inspection Certificate by utilizing Designated Confirmation and Inspection Bodies” (MLIT) in July 2014.
*3 The service started responding to the release of ”Guideline for the Building Energy-efficiency Labeling (2013)” (MLIT) in October 2013.
Coverage of BELS system expanded to housings in April 2016.
*4 The service, evaluation on insulating performance and HVAC efficiency of housings promoted by Japan Energy Pass Association,
started to add third-party certification system in January 2014.
*5 BELS data in the Financial Results for the Second Quarter May 2017 (released on Jan. 13, 2017) was corrected as follows.
BELS certification (Housings) total number: Error 1,299, Correct 1,321
Financial Results for the Second Quarter Ended November 30, 201712
Copyright © 2018 ERI holdings. All rights reserved.

1. Results for the second quarter of the fiscal year ending May 2018

Consolidated financial statements | Assets(Millions of yen)

FY2016FY2017 2Q(Jun. 2016 - May 2017)(Jun. 2017 – Nov. 2017)

4,109

6,235

2,126(2,027*)

Total current assets

3,256

4,352

1,096(985*)

Cash and deposits

2,104

2,695

591

Accounts receivable – trade

500

767

266

Work in process

352

456

103

853

1,882

1,029(1,042*)

Total Property, plant and equipment

153

398

244

Total intangible assets

220

962

741

58

686

627

478

522

43

Total assets

Total non-current assets

goodwill
Total investments and other assets

Change* Accompanying Jyutaku Seinou Hyouka Center.,Ltd. becoming a subsidiary.

Copyright © 2018 ERI holdings. All rights reserved.

13

Financial Results for the Second Quarter Ended November 30, 2017

1. Results for the second quarter of the fiscal year ending May 2018

Consolidated financial statements | Liabilities(Millions of yen)

FY2016FY2017 2Q(Jun. 2016 - May 2017)(Jun. 2017 – Nov. 2017)

1,811

3,931

2,120(1,338*)

Total current liabilities

1,621

3,691

2,070

Accrued expenses

598

759

160

Advances received

656

884

228

Total non-current liabilities

189

239

50

2,298

2,303

5

Total shareholders’ equity

2,293

2,296

3

Retained earnings

1,274

1,277

3

Total liabilities and net assets

4,109

6,235

2,126(1,338*)

Total liabilities

Total net assets

Change* Accompanying Jyutaku Seinou Hyouka Center.,Ltd. becoming a subsidiary.

Copyright © 2018 ERI holdings. All rights reserved.

14

Financial Results for the Second Quarter Ended November 30, 2017

2. Forecasts for the fiscal year ending May 2018

Forecasts for FY2017(Millions of yen)

FY2016FY2017FY2017

ChangePrevious Forecast (B)New Forecast (A)*(A-B)

11,357

12,187

13,144

957

Operating Profit

289

635

595

▲40

Vs. Net Sales

2.6%

5.2%

4.5%

－

Ordinary Profit

367

643

601

▲41

Vs. Net Sales

3.2%

5.3%

4.6%

－

Profit Attributable to
Owners of Parent

212

410

360

▲50

Earning per Share (Yen)

27.17

52.45

45.98

▲6.48

Dividends per Share (Yen)

30

30

30

0

Net Sales*We announced “Notice on Revision of Earnings Forecast for the Fiscal Year Ending May 2018” on December 19, 2017.

Copyright © 2018 ERI holdings. All rights reserved.

15

Financial Results for the Second Quarter Ended November 30, 2017

3. Topics

Acquisition of
Jyutaku Seinou Hyouka Center., Ltd.
Nov. 2017 – Jyutaku Seinou Hyouka Center acquired 960 own share out of
2,000 outstanding shares. ERI holdings acquired 980 out of remaining
1,040 shares.
 Dec. 2017 - ERI holdings additionally acquired 960 shares from Jyutaku Seinou
Hyouka Center. (Ownership ratio of ERI holdings is 97.0%)
Company Outline
Company name

Jyutaku Seinou Hyouka Center., Ltd.

Head office

Shinjuku-ku, Tokyo

Main business contents

Building confirmation and inspection, Housing performance
evaluation, Various services related to building and housing
evaluation

Establishment

June 2000

Capital

100 million yen

Net sales

2,238 million yen(FY ended March 2017)

Copyright © 2018 ERI holdings. All rights reserved.

16

Financial Results for the Second Quarter Ended November 30, 2017

3. Topics

Acquisition of
Jyutaku Seinou Hyouka Center., Ltd.
Comparison of Jyutaku Seinou Hyouka Center and Japan ERI
Jyutaku Seinou
Hyouka Center

Japan ERI

Branches

12

34

Employee (As of Dec. 1, 2017)

243

865

1st-class Kenchikushi

144

630

Qualified Building Regulation Conformity Inspectors

113

538

Housing Performance Evaluators

118

594

Building Confirmations

23,75843,836

Housing Design Performance Evaluation

10,113

19,633

Housing Construction Performance Evaluation

8,742

16,534

Number of certificates issued (FY ended March 2017)

Copyright © 2018 ERI holdings. All rights reserved.

17

Financial Results for the Second Quarter Ended November 30, 2017

3. Topics

Acquisition of
Jyutaku Seinou Hyouka Center., Ltd.
Advantages of Jyutaku Seinou Hyouka Center Co., Ltd. (SHC)

Efficient operation handling wide customer network of major ready-built house supplier and local wooden housebuilderMarket leader of Bldg. Confirmation service leveraging an electronic application and BIM interfacing application
Similar to Japan ERI Co., Ltd. (ERI), high ratio in set-application with Design and Construction Performance
Evaluation

Track record of number of Performance Evaluation of detached house (SHC / ERI)

3000

Housing Design Performance Evaluations of detached houses by SHC
Housing Construction Performance Evaluations of detached houses by SHC
Housing Design Performance Evaluations of detached houses by ERI
Housing Construction Performance Evaluations of detached houses by ERI

2500

Cases

2000
1500
1000
500
0
Jan. Mar. May Jul. Sep. Nov. Jan. Mar.May. Jul. Sep. Nov. Jan. Mar.May. Jul. Sep. Nov. Jan. Mar.May. Jul. Sep. Nov. Jan. Mar.May. Jul. Sep. Nov.
2013
2014
2015
2016
2017

Copyright © 2018 ERI holdings. All rights reserved.

18

Financial Results for the Second Quarter Ended November 30, 2017

3. Topics

External wall inspection with UAVs
 Develop an autonomous flight controlled UAVs tracing a preset flight plan* Inspect a building utilizing visible and infrared image shots from UAVs

* Joint development project with Aerosense Inc.

1. Preset UAVs flight plan upon a map

2. UAVs autonomous
flighting

3. Inspect an external wall condition
by a pair of image shot taken in themorning and afternoon
4. Image processing system produce a 3D
image of whole external wall of the bldg.
Copyright © 2018 ERI holdings. All rights reserved.

19

Financial Results for the Second Quarter Ended November 30, 2017

3. Topics

Revision in Building Lots and Buildings
Transaction Business Act (effective on April. 1, 2018)
 Enhance an accountability of real estate brokers to promote a smooth distribution of

housing stocks
 Popularization of home inspection service coming
 Stimulate a demand for legal compliance inspection of existing buildings which
haven't got Inspection Certificate【Transaction flow】
Application

Seller’s/buyer’s application
Brokerage contract【New procedure】
1. At the conclusion of the brokeragecontract
Intermediating home inspectors by thebroker upon a seller’s/buyer’s request.

Home inspection (Optional)
Transaction procedure

Explanations of important
items
Purchase agreement
Delivery of the property

2. At the explanations of important items
Broker explains the results of homeinspection to the buyer.
3. At the conclusion of the brokeragecontract
Broker delivers current condition report ofthe property to both seller/buyer.

Goal of the policy
Enhance secondary market size of
housing stocks¥ 4 tn (2013) ⇒ ¥ 8 tn (2025)
Improve the ratio of the liability
insured and condition inspected
properties
5% (2014) ⇒ 20% (2025)

Source: MLIT press release “Partial Revision of Building Lots and Buildings Transaction Business Act”, Feb. 2016.
Copyright © 2018 ERI holdings. All rights reserved.

20

Financial Results for the Second Quarter Ended November 30, 2017

4. Progress in medium-term management plan

Medium-term management plan
(FY2016 - FY2018)
Businessstrategy

Existing corebusiness<Strengthen
profitability>

New growthbusinesses<Increase ininvestments>

Business in new
fields<Expand businesssphere>ProvidersBusiness fieldBasic policy

Japan ERI
SHC
TBTC

 Building Confirmation andInspection
 Housing Performance Evaluation

Improve profitability by optimizing the allocation ofmanagement resources and promoting the efficiency ofoperations.
Accurately identify reorganization opportunities in theindustry and expand market share through M&As.

TBTC

 Structural Calculation Review

Establish systems and reach top of industry.

Japan ERI
TBTC Structural Evaluation

Use technical strengths to maintain high share of market.

Japan ERISHC
TBTC Services related to energy
conservation

View energy conservation requirements as an opportunityand expand energy conservation-related services to drivea growing share of existing core business.

ERI
Solution Building stock

Actively invest management resources to create third corebusiness.
Utilize M&As, including securing human resources(full-scale entry into non-destructive inspections).

ERI
Academy Information and educationrelated services

Establishment of stable revenue foundation.

ERI
Solution Infrastructure stock

Utilize M&As, expanding business sphere from buildings to
Infrastructures.

 Overseas

Continue to collect information to accurately identify
opportunities for business expansion.

-

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21

Financial Results for the Second Quarter Ended November 30, 2017

4. Progress in medium-term management plan

Strengthen profitability ofexisting core business ①●Building Confirmation and Inspection
Number of Building Confirmation and market share by ERI group
Number of Building Confirmation (Categories Ⅰ-Ⅲ)
Total market share
Market share of buildings in category Ⅳ

80,00017.2%

70,000

Cases

17.0%

17.1%

17.7%

20%

15%
12.0%

11.7%
10.2%

10.0%

30,00010,000

17.4%

14.3%

40,00020,000

17.5%

17.8%

15.6%

60,00050,000

Number of Building Confirmation (Category Ⅳ)
Market share of buildings in categories Ⅰ-Ⅲ

6.2%
4.6%
2.1%

6.7%

7.4%

7.3%

7.3%

7.6%

7.7%

7.8%

3.7%

3.8%

3.7%

4.0%

4.2%

4.3%

5.0%
2.2%

3.2%

3.3%

10%

5%

0

0%
FY2007

FY2008FY2009FY2010FY2011FY2012* FY2017 estimation includes SHC’s full year expected number.
Copyright © 2018 ERI holdings. All rights reserved.

22

FY2013

FY2014FY2015FY2016FY2017
Estimation*

Financial Results for the Second Quarter Ended November 30, 2017

4. Progress in medium-term management plan

Strengthen profitability ofexisting core business ②●Housing Performance Evaluation services
Number of Housing Performance Evaluation and market share by ERI group
Housing Design Performance Evaluation of detached houses by ERI group
Housing Construction Performance Evaluation of detached houses by ERI groupMarket share of Housing Design Performance Evaluation of detached houses
Market share of Housing Construction Performance Evaluation of detached houses

35,00030,000Cases

25,000

35%

33.7%
26.4%
21.1%

20,000
19.4%

26.7%

26.4%

25.8%

22.8%
23.9%

30%
24.5%

24.1%

23.8%
21.4%

24.8%

23.7%

22.8%

20.8%

21.7%

20.9%

15,000

28.5%

25%
20%

19.1%

18.7%

15%

10,000

10%

5,000

5%

0

0%
FY2007

FY2008FY2009FY2010FY2011FY2012* FY2017 estimation includes SHC’s full year expected number.
Copyright © 2018 ERI holdings. All rights reserved.

23

FY2013

FY2014FY2015FY2016FY2017
Estimation*

Financial Results for the Second Quarter Ended November 30, 2017

4. Progress in medium-term management plan

Strengthen profitability ofexisting core business ③●IT investment for operating efficiency and application of advanced technology
 Inspector delivery & technical assessment support, promotion of back-officeefficiency (system development with EPA System Inc.)

Inspector delivery support system :Tablet device for onsite inspection, online reservation service of inspection(Japan ERI – start by the end of this fiscal year, SHC – already in-place)Technical assessment support system :Building code digital database, area information retrieval system, etc.
System for promoting back-office efficiency, etc.
 BIM（Building Information Modeling）

Designapplication

SHC: Building Confirmation application by BIM
data of detached house started.
Japan ERI: BIM promotion center is established.
Feasibility study of BIM is progressed jointlywith counterparties, e.g. architect offices,
general contractors, developers, housebuilders, etc.
Integrated 3D model
Copyright © 2018 ERI holdings. All rights reserved.

24

MEPs

Structure

Financial Results for the Second Quarter Ended November 30, 2017

4. Progress in medium-term management plan

Enhance investment in new growth business ①-1●Qualified Building Energy Efficiency Standard Conformity Inspection Service(Mandatory only for non-houses buildings over 2000m2 or more)
Number of Qualified Building Energy Efficiency Standard Conformity Inspection andmarket share by ERI group
Number of all issues

Number of all issues by ERI groupMarket share of issues

300

31.0%
32.9%

32.0%

250

26.4%

28.3%

30%

23.7%

Cases

200
150

35%

25%

20.6%
20%

16.7%

15%
100

10%

50

5%

0

0%
Apr.

May

Copyright © 2018 ERI holdings. All rights reserved.

Jun.

Aug.

Jul.

25

Sep.

Oct.

Nov.

Financial Results for the Second Quarter Ended November 30, 2017

4. Progress in medium-term management plan

Enhance investment in new growth business ①-2●Roadmap of Energy Efficiency Standards implementation （by MLIT）
2020

Today

( FY )

Targets regarding Basic
Energy Plan, etc.

Starting ZEB on new public building, etc.

Mandatory compliance with energy efficiency standards
Mandatory (non-housing bldg.)

Mandatory (housing)

Middle size

Enhance regulatory regimes

Mandatory

Small size

Assessment rationalization study with pros

Accomplish ZEH
as new housing
standard
Enhance regulation
responding to technicaldevelopment and costdown, etc.

Mandatory

Enhance implementation by education and utilization of private institution
Technical education and level up of engineers who play design, construction and assessment

Ensure energy efficiency of
all new bldg.

Regulation of new building

Large size

Structural
improvements for
suppliers and assessors

2050

Accomplish ZEH
as new bldg. standard

Starting ZEH on standard new housing

Mandatorycompliancewith energy
efficiency
standards

2030

Reducing burden of designers and mid-to-small builders – improvement program usability

Source: MLIT press release ‘“Ideal energy saving policy for housings and buildings (initial report)”, (summarized draft) reference material‘,Dec. 2017.

Copyright © 2018 ERI holdings. All rights reserved.

26

Financial Results for the Second Quarter Ended November 30, 2017

4. Progress in medium-term management plan

Enhance investment in new growth business ②●Bird's-eye view of Japan real estate investment market
Home Inspection

Bldg. Inspection （Wear and tear, defects ）Legal compliance inspection
Seismic diagnosis
430 tn yen

2,519 tn yen

Real Estate

590 tn yen

Corporate owned(Office, Retail, Industrial, heals care, etc.)

Public owned
208 tn yen

Earning properties(Office, Retail, etc.)

30 tn yen

Securitized properties(J-REITs, TMKs,
Other schemes)

20 tn yen

450 tn yen

J-REITs, etc.

Local Public
Bodies owned

Engineering Report
Source: MLIT press release “Action plan for promotion of real estate investment market (reference)”, Jun 2017.
Copyright © 2018 ERI holdings. All rights reserved.

27

Financial Results for the Second Quarter Ended November 30, 2017

4. Progress in medium-term management plan

Expand business sphere in new business fields●Infrastructure volume chart based on national gross capital stock and its sector
by sector breakdown (FY2014)
National forest
Post
Forestry
12 tn yen
Agriculture
1.3%
72 tn yen
Coast
7.8%
7 tn yen
0.8%

Forest conservation
13 tn yen
1.4%
Social education
18 tn yen
1.9%

Urban Park
14 tn yen
1.5%

Source: Prepared by HRI Holdings based on
Cabinet Office - Director General for
Policy ”Social capital stock estimation”,
Dec. 2017.
Copyright © 2018 ERI holdings. All rights reserved.

Fishery
13 tn yen 1 tn yen
0.1%
1.4%

Flood control
96 tn yen
10.4%

Total
927
tn yen

6 tn yen
0.6%Road
337 tn yen
36.4%
Harbor
28 tn yen
3.0%

School facilities
60 tn yen
6.5%
Water supply
58 tn yen
6.2% Sewer system
98 tn yen
10.6%
Waste treatment
16 tn yen
1.7%

Aviation
5 tn yen
0.5%

Public rental housing
51 tn yen
5.5%

28

Industrial water
4 tn yen
0.4%

Railway, Transportation
organization, etc.
Subway etc. 7 tn yen
0.8%
11 tn yen
1.2%

Financial Results for the Second Quarter Ended November 30, 2017