Financial Results for the First Quarter
From June 1, 2020 to August 31, 2020
ERI Holdings Co., Ltd.
September 30, 2020

Evaluation,Rating,Inspection

Holdings
1

SummaryDecrease in revenue and earnings year on year
In the first quarter, continuous restraint on our clients’ operation due toCOVID-19 inflicted a blow on our business.
Both new housing and non-housing starts decreased by double-digit.
Both Building Confirmation and Inspection and Housing Performance
Evaluation services revenue decreased largely due to the slowdown of newhousing and non-housing starts.
Solution Services revenue decreased due to stagnation in real estatetransaction and on-site inspection among others.
Other Services revenue also decreased in such business conditions.
Continuous cost-cutting effort and subsidy income for employment
adjustment result in surplus ordinary profit.
Acquisition of Sakoken Co., Ltd. in September will impact from the third
quarter results.
Copyright © 2020 ERI holdings. All rights reserved2Consolidated financial results
1Q Previous
fiscal year

1Q Reporting
fiscal year

(Jun. 2019 –Aug. 2019)(Jun. 2020–
Aug. 2020)

3,687

3,399▲288▲7.8%50▲29▲80▲158.5%

Operating Profit Ratio

1.4％

▲0.9%

--

Ordinary Profit

10520▲84▲80.3%

Ordinary Profit Ratio

2.9％

0.6%

--Profit Attributable toOwners of Parent

637▲56▲87.8%

Profit per Share (Yen)

8.38

1.01

▲7.37

▲87.9%(Millions of yen)

Net Sales
Operating Profit

ChangeAmounts

Ratio

Copyright © 2020 ERI holdings. All rights reserved3Consolidated financial results by segment(Millions of yen)

1Q Previous 1Q Reporting
fiscal year
fiscal year

ChangeSegment
ProfitChange(Jun. 2019 –Aug. 2019)(Jun. 2020–Aug. 2020)

Amounts

Building Confirmation
and Inspection and its
related services

1,997[54.2%]

1,903[56.0%]

▲94

▲4.7%

22▲30

Housing Performance
Evaluation and its
related services

971[26.4%]

889[26.2%]

▲82

▲8.5%

151Solution Services

296[8.0%]

232[6.8%]▲63 ▲21.5%▲30▲49Others

421[11.4%]

374[11.0%]▲47 ▲11.3%▲21▲1Net Sales Total

3,687[100.0%]3,399[100.0%]▲288▲13▲80Ratio▲7.8%* From this fiscal year, segmentation is updated as follows.
“Building Confirmation and Inspection” was renamed “Building Confirmation and Inspection and its related services.” Segment of Structural Evaluations of High-rise Buildings and Approving of Compliance withBuilding Type Standards was changed from “Others” to “Building Confirmation and Inspection and its related services.” Segment of Approving of Housing Type Performance, etc. was changed from “Others” to“Housing Performance Evaluation and its related services.”
Copyright © 2020 ERI holdings. All rights reserved4Main operating figures | Consolidated
1Q Previousfiscal year

(Jun. 2019 – Aug. 2019)

Cases

Amounts(Millions of Yen)

1Q Reporting
fiscal year

Change(Jun. 2020 – Aug. 2020)

Cases

Amounts(Millions of Yen)

Cases

Amounts(Millions of Yen)

Building Confirmations

20,224871

17,248802▲2,976▲69

Final Inspections

17,349699

16,570

690

▲779

▲9

Detached
Houses9,855266

8,255

244

▲1,600▲22

Collective
Houses6,31671

6,417

68101

▲3

Detached
Houses

7,748

435

7,770

416

22▲19

Collective
Houses

6,08183

4,080

57▲2,001▲26

Housing Design
Performance
Evaluations

Housing
Construction
Performance
Evaluations

Copyright © 2020 ERI holdings. All rights reserved5

Key service figures | Consolidated
1Q Previous
fiscal year

(Jun. 2019 – Aug. 2019)

Cases

Amounts(Millions of Yen)

1Q Reporting
fiscal year

Change(Jun. 2020 – Aug. 2020)

Cases

Amounts(Millions of Yen)

Cases

Amounts(Millions of Yen)

Building Confirmations for
medium to large sizebuildings (over 500 sqm)

1,395

401

1,267384▲128▲17

Technical Assessments forLong-life Quality Housings

7,740

105

6,40788▲1,333▲17Inspections for Housing
Defect Liability Insurance

10,011949,34777▲664▲17Evaluation for Compliancewith Energy ConsumptionPerformance of Buildings

377633906213▲1Nonhousings

284182▲10▲2Housings

1,295212,075

33780

12BELSCertifications* “Building Confirmations for medium to large size buildings (over 500 sqm)” includes the numbers of plan change.
* “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.

Copyright © 2020 ERI holdings. All rights reserved

6Changes of quarterly results | Consolidated

Net sales(Millions of yen)

Ordinary profit(Millions of yen)

380

4,500

400

4,000350

310

3,500300

3,000

225

2,500180

161

2,000

0200

108

101

105

15612015010053

1,000500

1771381,500250

215

4632

1Q

2Q

3Q

FY 5/2017

204Q

1Q

2Q

3Q

FY 5/2018

4Q

1Q

2Q

3Q

FY 5/2019

4Q

1Q

2Q

3Q

FY 5/2020

4Q

1Q

500

FY 5/2021

Copyright © 2020 ERI holdings. All rights reserved

7Forecasts for FY 5/2021
ChangeFY 5/2020

FY 5/2021(Jun. 2019 –May 2020)(Jun. 2020 –May 2021)

14,842

14,546

▲296

▲2.0%

Operating Profit

517273▲244▲47.2%

Operating Profit Ratio

3.5%

1.9%

--Ordinary Profit

598300▲297▲49.7%

Ordinary Profit Ratio

4.0%2.1%--Profit Attributable toOwners of Parent

258

157

▲101

▲39.2%

Profit per Share (Yen)

33.69

20.31

▲13.38▲39.7%(Millions of yen)

Net SalesAmounts

Ratio

Copyright © 2020 ERI holdings. All rights reserved8Forecasts for FY 5/2021
About forecasts






Roughly three months have passed since the lift of the state of emergency
declaration, our clients’ business operation have gradually resumed. However,
we should pay close attention watch on the situation.
FY 5/2021 forecast is based on the assumption that a market will hit thebottom in 1Q and gradually start to recover in 2Q and then largely return tonormal in 4Q.
So far, our business has been going within the earlier assumption and we keep
initial forecast intact.
Because of a large uncertainty of such business condition, dividend forecast is
not yet determined. It will be decided in accordance with the revise of theabove forecast.

Copyright © 2020 ERI holdings. All rights reserved

9Topics
Acquisition of Sakoken Co., Ltd.
Sep. 17, 2020, ERI holdings acquired 100% outstanding shares.

Expanding housing related services in Hokkaido.
Company Outline
Company name

Sakoken Co., Ltd.

Head office

Sapporo-shi, Hokkaido

Main business contents

Building Confirmation and Inspection, Housing
Performance Evaluation, Home Inspection, etc.

Establishment

October 1974

Employee66（April 2020）

Capital15 million yen

Net sales

547 million yen（FY ended March 2020）
Copyright © 2020 ERI holdings. All rights reserved

10

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.

Copyright © 2020 ERI holdings. All rights reserved11