Financial Results
for the First Quarter
From June 1, 2017 to August 31, 2017

ERI Holdings Co., Ltd.
September 29, 2017
Listed on Tokyo Stock Exchange (Code 6083)
http://www.h-eri.co.jp

Summary
Increase in revenue and earnings year-on-year










New housing starts slightly decreased partly due to weakening demand for rental houses.
In Building Confirmation and Inspection services, both revenue and earnings increased
year-on-year by expanding final inspections in addition to the benefit from fee schedulerevision.
In Housing Performance Evaluation and its related services, Housing Design Performance
Evaluation decreased but Housing Construction Performance Evaluation increased
significantly.
In Solution Services, Due Diligence service performed well but labor cost also escalated
along with the business expansion.
In other segments, BELS service kept good sales and Evaluation for Compliance with Energy
Consumption Performance of Buildings started up but the demand was slower-thanexpected.
Share transfer of Jutaku Seinou Hyouka Center Co., Ltd. – Designated Confirmation andInspection Bodies focused on the nationwide service for detached houses - was agreed withmajor shareholder, released on Sep. 19.

Copyright © 2017 ERI holdings. All rights reserved.

2

Financial Results for the First Quarter Ended August 31, 2017

Consolidated results(Millions of yen)

FY2016 1Q

ChangeFY2017 1Q(Jun. 2016 – Aug. 2016) (Jun. 2017 – Aug. 2017)

AmountsRatio

2,701

2,829

127

4.7％

26

46

1973.2％

1.0％

1.6%

--32

53

2167.9％Ordinary Profit Ratio

1.2％

1.9%

--Profit Attributable toOwners of Parent

1326

1396.3％

Earnings per Share (Yen)

1.73

3.40

1.67-Net Sales
Operating Profit
Operating Profit RatioOrdinary Profit

Copyright © 2017 ERI holdings. All rights reserved.

3

Financial Results for the First Quarter Ended August 31, 2017

Consolidated results by segment(Millions of yen)

ChangeFY20161Q

FY2017
1Q

Building Confirmation
and Inspection

1,481［54.8％］

1,554[54.9％]

72

Housing Performance
Evaluation and its
related services

679［25.1％］

690[24.4％]

Solution Services*

182［6.8％］

OthersNet Sales Total

OperatingProfit

Change4.9％9954111.7％▲180191[6.8％]

94.9％▲12▲10358［13.3％］

392[13.9％]

349.6％▲22▲242,701［100.0％］2,829[100.0％]

127

4.7％

46

19Amounts

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 © 2017 ERI holdings. All rights reserved.

4

Financial Results for the First Quarter Ended August 31, 2017

Main operating figures | Consolidated(Cases)

FY2016 1Q

FY2017 1Q(Jun. 2016 – Aug. 2016) (Jun. 2017 – Aug. 2017)

ChangeAmounts

Ratio

Building Confirmations

15,65015,068

▲582

▲3.7％

Final Inspections

10,660

11,150490

4.6％

Housing Design Performance
Evaluations of Detached House

5,582

5,068

▲514

▲9.2％

Housing Design Performance
Evaluations of Collective House

7,444

4,682

▲2,762▲37.1％

Copyright © 2017 ERI holdings. All rights reserved.

5

Financial Results for the First Quarter Ended August 31, 2017

Key service figures | Consolidated
FY2017 1Q

ChangeAmounts

Cases（Millions of Yen）

Amounts

Cases（Millions of Yen）

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

1,399389▲7227Housing Performance Evaluations ofdetached houses*15,068178▲514▲20Technical Assessments for Long-life Quality
Housings*25,97293▲452▲3Inspections for Housing Defect Liability
Insurance*35,98071▲349▲4Evaluations of Seismic Capacity andSeismic Retrofitting Plans

3190▲3Structural Evaluations of High-rise Buildings(Skyscraper and/or Base isolation)

3234▲16▲25*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 © 2017 ERI holdings. All rights reserved.

6

Financial Results for the First Quarter Ended August 31, 2017

New services operating figures | Consolidated(Cases)

FY2016
1Q

ChangeFY2017
1Q

AmountsRatio

Route-2 Structural Examination*1

232

234

20.9％

Pre-completion Tentative Approval*13724▲13▲35.1％

Assessment of Compliance with the BuildingStandard Law services*2

2811▲17▲60.7％

BELS certification (Non-housings) *3

9*5

1910111.1％

BELS certification (Housings) *3

224

1,889

1,665743.3％

Energy Pass certification*415933▲126▲79.2％*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 In FY2016 1Q financial statements explanatory material, released on September 30, 2016, # of BELS certification (non-housings) were incorrectly counted as 8
instead of 9 and the total # of BELS certification was incorrectly described 232 instead of 233.
Financial Results for the First Quarter Ended August 31, 20177
Copyright © 2017 ERI holdings. All rights reserved.

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

Ordinary profit(Millions of yen)
400

4000

350

3500

300
3000
250
2500

200
150

2000

100

1500501000
0-100500

Ordinary profit-50

Net sales
FY2013
1Q

FY20132Q

FY20133Q

FY20134Q

FY20141Q

FY20142Q

FY20143Q

FY20144Q

FY20151Q

FY20152Q

FY20153Q

FY20154Q

FY20161Q

FY20162Q

FY20163Q

FY20164Q

FY2017
1Q

0Until third quarter of FY2013, data is financial results announced by JAPAN ERI CO.,LTD.

Copyright © 2017 ERI holdings. All rights reserved.

8Financial Results for the First Quarter Ended August 31, 2017

Forecasts for FY2016(Millions of yen)

FY2016FY2017

Change(Jun. 2016 – May 2017)(Jun. 2017 – May 2018)

11,357

12,187829

Operating Profit

289635345

Vs. Net Sales

2.6％

5.2％

－Ordinary Profit

367

643

275

Vs. Net Sales

3.2％

5.3％

－Profit Attributable toOwners of Parent

212

410

197

Earnings per Share (Yen)

27.17

52.45

25.28

Dividends per Share (Yen)30

30

0Copyright © 2017 ERI holdings. All rights reserved.

9Net Sales

Financial Results for the First Quarter Ended August 31, 2017

Topics
Sep. 19, 2017, concluding share purchase agreement!
The share transfer procedure is scheduled to be completed on November 22, 2017.
The impact of the share transfer on the business results for the fiscal year ending May 2018is currently under review and will be announced immediately after it is confirmed.
Corporate Profile
Company Name

Jutaku Seinou Hyouka Center Co., Ltd.

Head Office
Main Lines of BusinessShinjuku-ku, Tokyo
Building confirmation and inspection, Housing performance evaluation,
Various services related to building and housing evaluation

Paid-in Capital¥100million

EstablishedJune 2000

Fiscal Year End(Millions of yen)March 2015*

March 2016

March 20171,662

1,947

2,238

Operating Profit

7853220

Net Profit

62108

163

Total Assets

1,070

1,196

1,343

Net Assets

713

797928Sales*10-monthes of financial results, from June 2014 to March 2015, due to fiscal year-end change.
Copyright © 2017 ERI holdings. All rights reserved.

10Financial Results for the First Quarter Ended August 31, 2017

ERI Holdings Co., Ltd.
Investor Relations and Public Relations Group
info@j-eri.co.jp

This release contains forward-looking statements about ERI Holdings Co Ltd’s future plans, strategies, beliefs and performance that are
not historical facts. Such statements are based on the company’s assumptions and risks, uncertainties and assumptions that, without
limitation, relate to economic conditions. Accordingly, ERI Holdings Co Ltd wishes to caution readers that actual results may differ
materially from those projected in this release and ERI Holdings Co Ltd bear no responsibility for any negative impact caused by theuse of this release.

Copyright © 2017 ERI holdings. All rights reserved.

11

Financial Results for the First Quarter Ended August 31, 2017