ERI : Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending May 31, 2021

Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending May 31, 2021

(From June 1, 2020 to February 28, 2021)

[Japanese GAAP]

Company Name:	ERI Holdings Co., Ltd.
Securities Code:	6083
Representative:	Akiyo Masuda, President and COO
For Inquiries, Contact:
TEL:[phone]

Seiichiro Matsumura, Head of Finance and Accounting Group

Listing Exchanges: First section of the Tokyo Stock Exchange URL:https://www.h-eri.co.jp/

Planned Date for Submission of Quarterly Securities Report:	March 30, 2021
Planned Starting Date for Dividend Payments:	-
Supplementary documents for financial results:	Yes
Financial Results briefing:	None

March 30, 2021

(Amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending May 31, 2021 (June 1, 2020 - February 28, 2021)

(1) Consolidated Financial Results (Cumulative)

(% indicates year-on-year change)

Net Sales	Operating Profit	Ordinary Profit	Profit Attributable to Owners of Parent
FY 5/2021 Q3 FY 5/2020 Q3	million yen 10,363 11,102	% (6.7) (0.9)	million yen 22 320	% (93.1) (55.9)	million yen 86 382	% (77.4) (48.6)	million yen 29 211	% (85.9) (56.2)

(Note) Comprehensive Income

FY 5/2021 Q3: 33 million yen (-85.1%)

Profit per Share	Diluted Profit per Share
FY 5/2021 Q3 FY 5/2020 Q3	yen 3.83 27.62	yen - -

(2) Consolidated Financial Position

FY 5/2020 Q3: 220 million yen (-54.7%)

Total Assets	Net Assets	Shareholders' Equity Ratio
FY 5/2021 Q3 FY 5/2020	million yen 6,776 6,762	million yen 2,786 2,746	% 40.6 40.0

(Reference) Shareholders' Equity

FY 5/2021 Q3: 2,752 million yenFY 5/2020: 2,705 million yen

2. Dividends

Dividends per Share
End of Q1	End of Q2	End of Q3	Fiscal Year End	Annual
FY 5/2020 FY 5/2021	yen - -	yen 15.00 0.00	yen - -	yen 12.00	yen 27.00
FY 5/2021 (Forecast)	10.00	10.00

(Note) Revisions to dividend forecasts published most recently: None

3. Consolidated Financial Forecasts for the Fiscal Year Ending May 31, 2021 (June 1, 2020- May 31, 2021)

(% indicates year-on-year change)

Net Sales

million yen 14,546

Operating Profit

(2.0)

%million yen 273

(47.2)

%million yen 300

(Note) Revisions to performance forecasts published most recently: NoneOrdinary ProfitProfit Attributable to Owners of Parent

(49.7)

%

million yen 157

Profit per Share

%

yen 20.31

* Notes

• (1) Changes in significant subsidiaries during the term under review (changes in subsidiaries via share exchange causing a change in the scope of consolidation): None

• (2) Adoption of accounting treatment unique to the preparation of quarterly consolidated financial statements: None

• (3) Accounting policies, changes in accounting estimates and errors

• (i) Changes in accounting policies associated with the revision of accounting standards, etc.:

• (ii) Changes in accounting policies other than (i):

• (iii) Changes in accounting estimates:

• (iv) Restatements:

None None None None

(4) Number of shares issued (common stock)

(i) Shares Outstanding (incl. treasury stock):

• (ii) Treasury Stock:

• (iii) Average Number of Shares Outstanding

FY 5/2021 Q3	7,832,400 shares
FY 5/2020	7,832,400 shares
FY 5/2021 Q3	85 shares
FY 5/2020	98,085 shares
FY 5/2021 Q3	7,787,607 shares
FY 5/2020 Q3	7,646,502 shares

FY 5/2020 7,832,400 shares

• FY 5/2020 98,085 shares

  * This report is not subject to audit by certified public accountant or audit firm.

  * Cautionary statement with respect to forward-looking statements, and other information.

  The performance projections in this report are based on information currently available and significantly include uncertainty. Actual result may differ materially from these projections due to various factors.

Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheet

(Unit: thousand yen)

Previous fiscal year (As of May 31, 2020)

The third quarter of the reporting fiscal year (As of February 28, 2021)Assets

Current assetsCash and deposits Accounts receivable-trade Work in process

Other

Allowance for doubtful accounts Total current assets

2,725,761 786,998 439,345 337,595

(86) 4,289,615

Non-current assets

Property, plant and equipment Intangible assets

Goodwill Other

Total intangible assets Investments and other assets

570,366 496,750 362,385 859,136

2,728,025 753,993 564,098 475,064

- 4,521,181

554,929 452,052 316,896 768,949

Investment securities Guarantee deposits Deferred tax assets Other

1,055

910

481,816

471,758

405,025

398,137

Allowance for doubtful accounts Total investments and other assets Total non-current assets

155,830

(4)

60,146 -

1,043,723

930,953

2,473,225

2,254,832

Total assets

6,762,841

6,776,014

(Unit: thousand yen)

Previous fiscal year (As of May 31, 2020)

The third quarter of the reporting fiscal year (As of February 28, 2021)Liabilities

Current liabilities

Short-term borrowings

Current portion of long-term borrowings Accounts payable - other

Accrued expenses Income taxes payable Advances received Lease obligations Other

-

300,000

137,100

284,961

280,617

416,101

646,760

629,560

248,514

52,256

869,866

841,742

33,881

36,173

307,589

288,149

Total current liabilities Non-current liabilities

Long-term borrowings Retirement benefit liability Long-term accounts payable - other Lease obligations

Provision for loss on guarantees Other

2,524,329

2,848,944

1,118,062

822,600

64,512

55,559

104,313

105,283

67,253

99,757

77,125 -

37,714

79,967

Total non-current liabilities Total liabilities

1,491,614

4,015,943

Net assets

Shareholders' equity

Share capital Capital surplus Retained earnings Treasury shares

1,140,536

3,989,481

992,784

992,784

42,236

42,236

1,783,390

1,717,996

(112,091)

(72)

Total shareholders' equity Accumulated other comprehensive income

Valuation difference on available-for-sale securities

Total accumulated other comprehensive income

(411)

2,706,319

2,752,944

(502)

Non-controlling interests

Total net assets

(411) 40,988 2,746,897

(502) 34,091 2,786,533

Total liabilities and net assets

6,762,841

6,776,014

(2) Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statement of Income

(Unit: thousand yen)

The third quarter of	The third quarter of
the previous fiscal year	the reporting fiscal year
(From June 1, 2019	(From June 1, 2020
to February 29, 2020)	to February 28, 2021)
Net sales	11,102,648	10,363,833
Cost of sales	8,084,168	7,665,974
Gross profit	3,018,479	2,697,859
Selling, general and administrative expenses	2,698,226	2,675,814
Operating profit	320,252	22,044
Non-operating income
Interest income	33	22
Dividend income of insurance	8,038	6,956
Commission income	1,408	1,056
Rent revenue	5,807	5,039
Insurance claim income	18,739	-
Guarantee commission received	7,747	7,747
Surrender value of insurance policies	23,507	4,063
Subsidy income	-	92,778
Miscellaneous income	5,647	3,408
Total non-operating income	70,929	121,071
Non-operating expenses
Interest expenses	7,390	6,477
Loss on guarantees	-	49,243
Miscellaneous loss	891	882
Total non-operating expenses	8,282	56,604
Ordinary profit	382,899	86,511
Extraordinary income
Gain on sales of non-current assets	519	-
Total extraordinary income	519	-
Extraordinary losses
Loss on sales of non-current assets	-	640
Total extraordinary losses	-	640
Profit before income taxes	383,419	85,871
Income taxes - current	205,296	31,170
Income taxes - deferred	(42,895)	21,592
Total income taxes	162,401	52,763
Profit	221,017	33,108
Profit attributable to non-controlling interests	9,857	3,274

Profit attributable to owners of parent

211,160

29,833

Quarterly Consolidated Statement of Comprehensive Income

(Unit: thousand yen)

The third quarter of the previous fiscal year

(From June 1, 2019 to February 29, 2020)

The third quarter of the reporting fiscal year

(From June 1, 2020 to February 28, 2021)

Profit

Other comprehensive income

Valuation difference on available-for-sale securities

221,017

(109)

33,108

(94)

Total other comprehensive income Comprehensive income

Comprehensive income attributable to: Comprehensive income attributable to owners of parent

Comprehensive income attributable to non-controlling interests

(109) 220,908

(94) 33,013

211,054 29,741

9,854 3,272