ERI : Financial Results for the First Quarter

Summary

Good start for V-shaped recovery

• In the first quarter, housing sector remarkably rebounded, and it largely contributed to the recovery of our business.
• Both new housing starts and new build GFA of non-housing have been increasing on a year-on-year comparison.
• All the segments turned around to increase in revenue and earnings on a year-on-year comparison.
• M&A of Sakoken, certification for the Point System for Green Housing, premium refunds and application of Accounting Standard for Revenue Recognition impacted positively but temporary.
• We should keep an eye on a few concerns such as a possible rebound of COVID-19, global shortfall of construction woods※1 and semiconductors※2, etc.

※1 See "Supply crunch; impact of Wood Shock." METI report, July 27, 2021.

※2 Delay in supplying photovoltaics, air conditioners, EcoCute (Natural refrigerant heat pump water heater), etc.

Consolidated financial results

	1Q Previous	1Q Reporting	Change
	fiscal year	fiscal year
(Millions of yen)
(Jun. 2020 -	(Jun. 2021-	Amounts	Ratio
	Aug. 2020)	Aug. 2021)
Net Sales	3,399	3,779	380		11.2%
Operating Profit	▲29	355	385		-
Operating Profit Ratio	▲0.9%	9.4％	-		-
Ordinary Profit	20	392	372		-
Ordinary Profit Ratio	0.6%	10.4％	-		-
Profit Attributable to	7	247	240		-
Owners of Parent
Profit per Share (Yen)	1.01	31.64	30.63		-

Consolidated financial results by segment

	1Q Previous	1Q Reporting	Change
	fiscal year	fiscal year	Segment
(Millions of yen)			Change
(Jun. 2020 -	(Jun. 2021-	Amounts	Ratio	Profit
	Aug. 2020)	Aug. 2021)
Building Confirmation	1,903	2,058	155	8.2%	291	269
and Inspection and its
[56.0%]	[54.5%]
related services
Housing Performance	889	928	39	4.4％	68	52
Evaluation and its
[26.2%]	[24.6%]
related services
Solution Services	232	327	95	40.9%	▲16	14
[6.8%]	[8.7%]
Others	374	464	90	24.1%	27	49
[11.0%]	[12.3%]
Net Sales Total	3,399	3,779	380	11.2%	372	385
[100.0%]	[100.0%]

Main operating figures | Consolidated

		1Q Previous	1Q Reporting	Change
		fiscal year	fiscal year
		(Jun. 2020 - Aug. 2020)	(Jun. 2021 - Aug. 2021)
		Cases	Amounts	Cases	Amounts	Cases	Amounts
		(Millions of Yen)	(Millions of Yen)	(Millions of Yen)
Building Confirmations	17,248	802	20,608	923	3,360	121
Final Inspections	16,570	690	16,301	675	▲269	▲15
Housing Design	Detached	8,255	244	9,081	282	826	38
Houses
Performance
Evaluations	Collective	6,417	68	5,978	68	▲439	0
	Houses
Housing	Detached	7,770	416	6,318	359	▲1,452	▲57
Houses
Construction
Performance
Collective	4,080	57	3,027	51	▲1,053	▲6
Evaluations	Houses