Financial Results
for the Third Quarter
From June 1, 2017 to February 28, 2018

ERI Holdings Co., Ltd.
March 30, 2018
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 rentalhouses.
Building Confirmation, Housing Performance Evaluation and its related services
and other segments are increased by the sales of Jyutaku Seinou Hyouka CenterCo., Ltd.
In Building Confirmation and Inspection services, earnings increased significantly
by the benefit from the fee schedule revision of Japan ERI Co., Ltd.
In Solution Services, Due Diligence service is performing well.
In other segments, BELS service kept good sales and Evaluation for Compliancewith Energy Consumption Performance of Buildings recovered from slow startup.
ERI Solution Co., Ltd. entered into business alliance with Iemamori Holdings Co.,
Ltd. in home inspection services, released on Mar. 20.

Copyright © 2018 ERI holdings. All rights reserved.

2Financial Results for the Third Quarter Ended February 28, 2018

Consolidated results(Millions of yen)

FY2016 3QFY2017 3Q(Jun. 2016 – Feb. 2017) (Jun. 2017 – Feb. 2018)

ChangeAmounts

Ratio

Net Sales

8,412

9,307

895

10.6%

Operating Profit

171386214125.2%

Operating Profit Ratio

2.0%

4.1%

--Ordinary Profit

187

391

204

109.1%

Ordinary Profit Ratio

2.2%

4.2%

--Profit Attributable to
Owners of Parent

109225116

106.7%

Earnings per Share (Yen)

13.95

28.93

14.98

-

* Consolidated result of the fiscal year ending May 2018 includes the third quarter (Oct.2017-Dec.2017) data of Jyutaku Seinou Hyouka Center Co., Ltd.

Copyright © 2018 ERI holdings. All rights reserved.

3

Financial Results for the Third Quarter Ended February 28, 2018

Consolidated results by segment(Millions of yen)Segment
Operating
ProfitChange

10.3%

434

235

7.2%

▲37653[7.0%]▲1 ▲0.2%

44141,058［12.6%］

1,332[14.3%]

273

25.8%

▲74

▲278,412［100.0%］9,307[100.0%]

895

10.6%

402

230

ChangeFY20163Q

FY2017
3Q

Building Confirmation
and Inspection

4,552［54.1%］

5,021[54.0%]

469

Housing Performance
Evaluation and its
related services

2,146［25.5%］

2,300[24.7%]

154

Solution Services*654［7.8%］

OthersNet Sales Total

Amounts

Ratio* Consolidated result by segment of the fiscal year ending May 2018 includes the third quarter (Oct.2017-Dec.2017) data of Jyutaku Seinou Hyouka Center Co., Ltd.

Copyright © 2018 ERI holdings. All rights reserved.

4

Financial Results for the Third Quarter Ended February 28, 2018

Main operating figures | Consolidated(Cases)

FY2016 3Q

FY2017 3Q(Jun. 2016 – Feb. 2017) (Jun. 2017 – Feb. 2018)

ChangeAmounts

Ratio

Building Confirmations

40,43745,765

5,328

13.2%

Final Inspections

36,112

41,6255,51315.3%

Housing Design Performance
Evaluations of Detached House

15,32817,879

2,551

16.6%

Housing Design Performance
Evaluations of Collective House

17,761

16,351▲1,410▲7.9%* Consolidated result of the fiscal year ending May 2018 includes the cases of the third quarter (Oct.2017-Dec.2017) of Jyutaku Seinou Hyouka Center Co., Ltd.
* All data represents the number of issuance.
* From this report, the numbers of plan change by Japan ERI Co., Ltd. exclude from “Building Confirmations” and “Final Inspections”.
* From this report, the number of auxiliary structures and elevators by Japan ERI Co., Ltd. includes in “Building Confirmations” and “Final Inspections”.

Copyright © 2018 ERI holdings. All rights reserved.

5

Financial Results for the Third Quarter Ended February 28, 2018

Key service figures | Consolidated
FY2016 3Q
Cases

FY2017 3Q

Amounts

Cases

1,009

（Millions of Yen）

ChangeAmounts

Cases

3,800

1,078

▲15969（Millions of Yen）

Amounts（Millions of Yen）

Building Confirmations for medium tolarge size buildings (over 500 sqm)

3,959

Housing Performance Evaluations ofdetached houses

15,328542 17,8795782,55136

Technical Assessments for Long-life
Quality Housings

17,569267 18,405276836

8Inspections for Housing DefectLiability Insurance

22,480283 21,800

270▲680▲13

Evaluations of Seismic Capacity andSeismic Retrofitting Plans

13844152

47

143

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

106

14890111▲16▲37* “Building Confirmations for medium to large size buildings (over 500 sqm)” includes the numbers of plan change and excludes the data of Jyutaku Seinou Hyouka Center Co., Ltd.
* “Housing Performance Evaluations of detached houses” represents the cases and amounts of issuance of Housing Design Performance Evaluation, which includes the third quarter(Oct.2017-Dec.2017) data of Jyutaku Seinou Hyouka Center Co., Ltd.
* “Technical Assessments for Long-life Quality Housings” represents the numbers and amounts of conformance certificate, which includes the numbers and amounts of extension andrenovation. It includes the third quarter (Oct.2017-Dec.2017) data of Jyutaku Seinou Hyouka Center Co., Ltd.
* From this report, counting rules of “Inspections for Housing Defect Liability Insurance” is changed. New rules are the following: 1) including Defect Insurance but excluding inspection
for insurance firm and Housing Performance Certification, 2) including insurance brokerage numbers and amounts, and 3) including the data of all housing defect liability insurancecompanies. The data of Jyutaku Seinou Hyouka Center Co., Ltd. is excluded.
* From this report, the numbers and amounts of plan change by Tokyo Bldg-Tech Center Co., Ltd. exclude from “Structural Evaluations of High-rise Buildings (Skyscraper and/or Baseisolation)”.

Copyright © 2018 ERI holdings. All rights reserved.

6

Financial Results for the Third Quarter Ended February 28, 2018

New services operating figures | Consolidated(Cases)

FY2016
3Q

ChangeFY2017
3Q

AmountsRatio

Route-2 Structural Examination

636603▲33▲5.2%

Pre-completion Tentative Approval

111107▲4▲3.6%

Assessment of Compliance with the BuildingStandard Law services

6457▲7▲10.9%

BELS certification (Non-housings)

138

132

▲6▲4.3%

BELS certification (Housings)

1,964

4,355

2,391

121.7%

Energy Pass certification

21199

▲112

▲53.1%* Consolidated result of the fiscal year ending May 2018 includes the cases of the third quarter (Oct.2017-Dec.2017) of Jyutaku Seinou Hyouka Center Co., Ltd.
* From this report, the numbers of plan change by Japan ERI Co., Ltd. exclude from “Pre-completion Tentative Approval”.
* “Route-2 Structural Examination”, “Pre-completion Tentative Approval” and “Assessment of Compliance with the Building Standard Law services” exclude the numbers of plan change.

Copyright © 2018 ERI holdings. All rights reserved.

7

Financial Results for the Third Quarter Ended February 28, 2018

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

Ordinary profit(Millions of yen)
250

4000
Ordinary profit

3500

Net sales

200

3000

150

2500
100
2000
50
1500
01000-50-100500

FY20134Q

FY20141Q

FY20142Q

FY20143Q

FY20144Q

Copyright © 2018 ERI holdings. All rights reserved.

FY20151Q

FY20152Q

FY20153Q

FY20154Q

8FY20161Q

FY20162Q

FY20163Q

FY20164Q

FY20171Q

FY20172Q

FY2017
3Q

0

Financial Results for the Third Quarter Ended February 28, 2018

Forecasts for FY2016(Millions of yen)

FY2016FY2017*

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

11,357

13,1441,787

Operating Profit

289

595

305

Vs. Net Sales

2.6%4.5%－Ordinary Profit

367

601

234

Vs. Net Sales

3.2%

4.6%

－Profit Attributable toOwners of Parent

212

360

147

Earnings per Share (Yen)

27.17

45.98

18.81

Dividends per Share (Yen)30

300Net 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.

9Financial Results for the Third Quarter Ended February 28, 2018

TopicsMar. 20, 2018, ERI Solution Co., Ltd. entered into businessalliance with Iemamori Holdings Co., Ltd. in homeinspection service.
【Outline of the alliance】- Tie-up of nation wide network of home inspection service- Tie-up of education for home inspectors
Company OutlineCompany nameIemamori Holdings Co., Ltd.

Head office

Chiyoda-ku, Tokyo

Business contents

Inspection of new and existing houses, liability insurance for
exiting house transaction and other housing related services

Capital¥50million

Establishment

November 2011

Copyright © 2018 ERI holdings. All rights reserved.

10

Financial Results for the Third Quarter Ended February 28, 2018

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 thatare 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 causedby the use of this release.

Copyright © 2018 ERI holdings. All rights reserved.

11Financial Results for the Third Quarter Ended February 28, 2018