Financial Results
for the First Quarter
From June 1, 2016 to August 31, 2016

ERI Holdings Co., Ltd.
September 30, 2016
Listed on Tokyo Stock Exchange (Code 6083)
http://www.h-eri.co.jp
1Summary
Both sales and income decreased year-on-year.
 Major factors causing decrease in sales were the expiration of Point System for Energy-savingHomes and 5-months sales inclusion due to the change of fiscal year end by one of subsidiarycompanies, TBTC, in the previous year.

 Final Inspection and Housing Construction Performance Evaluation struggled due to a decreaseof construction starts in the previous year.

 Along with steady new orders, Building Confirmation and Housing Performance Evaluation

increased on year-on-year comparison.

 Structural Evaluations of High-rise Buildings recovered from the slump a year ago.
 New services such as Assessment of Compliance with the Building Standard Law, Route-2

Structural Examination and Pre-completion Tentative Approval, etc. are in strong demand.

 Among energy conservation related business, number of BELS certification robustly increased

encouraged by the introduction of energy saving related subsidies that requires BELS
certification and an expansion of BELS certifiable buildings to housing in April.

Copyright © 2016 ERI holdings Co., Ltd. All rights reserved.

2

Financial Results for the First Quarter Ended August 31, 2016

Consolidated results(Millions of yen)

ChangeFY2015 1Q

FY2016 1Q(Jun. 2015 – Aug. 2015)(Jun. 2016 – Aug. 2016)

2,912(2,806)

2,701(2,701)▲210(▲104)▲7.2%(▲3.7%)

Operating Income

9526

▲68

▲71.9%

Operating Income Ratio

3.3%

1.0%

--Ordinary Income111

32▲79▲71.3%

Ordinary Income Ratio

3.8%

1.2%

--Profit Attributable toOwners of Parent7413▲60▲81.7%Net Income per Share(Yen)

9.50

1.73▲7.77-Gross Sales(Net Sales *)AmountsRatio* Net sales is gross sales minus peer check fee, which was paid to a structural calculation review body through ERI group. After the revision of Building Standard Law inJune 2015, the procedure of confirmation was changed and applicants directly apply to a structural calculation review body separately from Building Confirmation
procedure. Both gross and net sales are described in FY 2015 disclosure, from FY 2016, however, these two sales results in one same sales, which has been previously
described as net sales.
Copyright © 2016 ERI holdings Co., Ltd. All rights reserved.

3

Financial Results for the First Quarter Ended August 31, 2016

Consolidated results by segment(Millions of yen)

FY20151Q

FY2016
1Q

ChangeAmounts

Ratio

Operating
IncomeChangeBuilding Confirmation
and Inspection(Net Sales)

1,627(1,520)［54.2%］

1,481(1,481)［54.8%］▲145(▲38)▲8.9%(▲2.6%)

4410

Housing Performance
Evaluation and its
related services751［26.8%］

679［25.1%］

▲72

▲9.7%

▲17▲73Solution Services*1

195［6.9%］

182［6.8%］▲12▲6.4%▲2▲14Others338［12.1%］

358［13.3%］

195.8%

28Gross Sales Total

2,912［100.0%］*22,701［100.0%］*2▲210▲7.2%

26▲68*1 “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. 1Q FY2015 data in this table are also revised based on new segment recognition.
*2 Structural ratio [ ] is calculated using Net sales. (FY2015 2,806 million yen, FY2016 2,701 million yen)

Copyright © 2016 ERI holdings Co., Ltd. All rights reserved.

4

Financial Results for the First Quarter Ended August 31, 2016

Main operating figures | Consolidated(Cases)ChangeFY2015 1Q

FY2016 1Q(Jun. 2015 – Aug. 2015)(Jun. 2016 – Aug. 2016)

Building
confirmations

15,224

15,650426

2.8%Final inspections

10,674

10,660▲14▲0.1%

Housing design
performance
evaluations ofdetached house

5,239

5,582343

6.5%

Housing design
performance
evaluations ofcollective house

5,601

7,444

1,843

32.9%

Copyright © 2016 ERI holdings Co., Ltd. All rights reserved.

5Amounts

Ratio

Financial Results for the First Quarter Ended August 31, 2016

New services operating figures | Consolidated(Cases)

FY2015
1Q

ChangeFY2016
1Q

Amounts

Ratio

117

232

11598%

Pre-completion Tentative Approval*1

13736

3,600%

Assessment of Compliance with the BuildingStandard Law services*2

2428

417%

9232

223

2,478%

23159

136591%

Route-2 Structural Examination*1

BELS certification*3(Assessment of Compliance with the Building
Energy-efficiency Labeling System)

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.
Copyright © 2016 ERI holdings Co., Ltd. All rights reserved.

6

Financial Results for the First Quarter Ended August 31, 2016

Key service figures | Consolidated
FY2016 1Q

ChangeAmounts

Cases（Millions of Yen）

Amounts

Cases（Millions of Yen）

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

1,471

362

5

3

Housing performance evaluations ofdetached houses*1

5,582

198343▲5

Technical assessments for Long-Life Quality
Housings*2

6,424963742Inspections for housing defect liability
insurance*36,32975150▲1Evaluations of seismic capacity andseismic retrofitting plans

3112▲16▲5

Structural evaluations of high-rise buildings(Skyscraper and/or Base isolation)

4859

2936

Sales of “Technical assessments for Long-Life Quality Housings” in Financial Results for the First Quarter (released September 30, 2015) was incorrect number.
The number is corrected from 65 to 94 million yen and revised from Financial Results for the Second Quarter (released January 14, 2016).
*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.
Copyright © 2016 ERI holdings Co., Ltd. All rights reserved.

7Financial Results for the First Quarter Ended August 31, 2016

Changes of quarterly results | Consolidated
Quarterly net sales and ordinary income
Net sales(Millions of yen)

Ordinary income(Millions of yen)
400

4000

350

3500

300
3000
250
2500

200
150

2000

100

1500

50
1000
0
Ordinary income-50500

Net sales-1000
FY2012
1Q

FY20122Q

FY20123Q

FY2012
4QFY2013
1Q

FY20132Q

FY20133Q

FY20134Q

FY20141Q

FY20142Q

FY20143Q

FY20144Q

FY20151Q

FY20152Q

FY20153Q

FY20154Q

FY2016
1Q

Until third quarter of FY2013, data is financial results announced by JAPAN ERI CO.,LTD.

Copyright © 2016 ERI holdings Co., Ltd. All rights reserved.

8Financial Results for the First Quarter Ended August 31, 2016

Forecasts for FY2016(Millions of yen)

FY2016FY2015

Change11,470(11,356)

11,879(11,879)408(522)

Operating Income

569

632

62

Vs. Gross Sales

5.0%

5.3%

－Ordinary Income6256282Vs. Gross Sales

5.5%

5.3%

－Profit Attributable to Owners ofParent

414400▲13Net Income per Share (Yen)

52.96

51.15

▲1.81

Dividend per Share (Yen)

30300

Gross Sales(Net Sales)* Net sales is gross sales minus peer check fee, which was paid to a structural calculation review body through ERI group. After the revision of Building Standard Law inJune 2015, the procedure of confirmation was changed and applicants directly apply to a structural calculation review body separately from Building Confirmation
procedure. Both gross and net sales are described in FY 2015 disclosure, from FY 2016, however, these two sales results in one same sales, which has been previously
described as net sales.
Copyright © 2016 ERI holdings Co., Ltd. All rights reserved.

9Financial Results for the First Quarter Ended August 31, 2016