ERI : Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending May 31, 2022

Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending May 31, 2022

Company Name: Securities Code: Representative:

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(From June 1, 2021 to February 28, 2022)

[Japanese GAAP]

ERI Holdings Co., Ltd. 6083

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

Toshihiko Umano, President, CEO and COO

Seiichiro Matsumura, Head of Finance and Accounting Group

Planned Date for Submission of Quarterly Securities Report:	March 30, 2022
Planned Starting Date for Dividend Payments:	-
Supplementary documents for financial results:	Yes
Financial Results briefing:	None

March 30, 2022

(Amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending May 31, 2022 (June 1, 2021 - February 28, 2022)

(1) Consolidated Financial Results (Cumulative)

(% indicates year-on-year change)

Net Sales	Operating Profit	Ordinary Profit	Profit Attributable to Owners of Parent
FY 5/2022 Q3 FY 5/2021 Q3	million yen 12,001 10,363	% 15.8 (6.7)	million yen 1,511 22	% - (93.1)	million yen 1,569 86	% - (77.4)	million yen 973 29	% - (85.9)

(Note) Comprehensive Income

FY 5/2022 Q3: 981 million yen (-%)

Profit per Share	Diluted Profit per Share
FY 5/2022 Q3 FY 5/2021 Q3	yen 124.33 3.83	yen - -

(2) Consolidated Financial Position

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

Total Assets	Net Assets	Shareholders' Equity Ratio
FY 5/2022 Q3 FY 5/2021	million yen 7,821 6,477	million yen 3,769 3,024	% 47.7 46.1

FY 5/2022 Q3: 3,728 million yen

(Reference) Shareholders' Equity

FY 5/2021: 2,988 million yen

2. Dividends

Dividends per Share
End of Q1	End of Q2	End of Q3	Fiscal Year End	Annual
FY 5/2021 FY 5/2022	yen - -	yen 0.00 15.00	yen - -	yen 15.00	yen 15.00
FY 5/2022 (Forecast)	25.00	40.00

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

(Note) The 25.00 yen of year-end dividend for FY 5/2022 (forecast) includes 10.00 yen special dividend.

3. Consolidated Financial Forecasts for the Fiscal Year Ending May 31, 2022 (June 1, 2021- May 31, 2022)

Net Sales

million yen 15,810

Operating Profit

Profit Attributable to Owners of Parent

% 9.8

million yen 1,600

% 297.2

million yen 1,660

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

% 250.0

million yen 1,031

(% indicates year-on-year change)

Profit per Share

% 289.7

yen 131.73

* 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:

Yes 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 5/2022 Q3	7,832,400 shares
FY 5/2021	7,832,400 shares
FY 5/2022 Q3	122shares
FY 5/2021	85 shares
FY 5/2022 Q3	7,832,297 shares
FY 5/2021 Q3	7,787,607 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.

ERI Holdings Co., Ltd. (Securities Code 6083)

Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheet

(Unit: thousand yen)

Previous fiscal year (As of May 31, 2021)

The third quarter of the reporting fiscal year (As of February 28, 2022)

Assets

Current assets

Cash and deposits Accounts receivable-trade

Accounts receivable-trade and contract assets Work in process

2,650,798 902,549 - 420,120

4,269,064 - 1,067,618 233,108

Other 287,865

306,995

Total current assets

4,261,334

5,876,787

Non-current assets

Property, plant and equipment Intangible assets

Other 322,857

298,007

531,363 432,680 755,537

Goodwill

Total intangible assets

486,556 374,564 672,571

Investments and other assets

Investment securities Guarantee deposits Deferred tax assets

Other 55,483

20,654

1,028 469,228 403,842 929,583

Total investments and other assets

961 462,232 302,233 786,082

Total non-current assets 2,216,484

1,945,210

Total assets

6,477,818

7,821,998

ERI Holdings Co., Ltd. (Securities Code 6083)

(Unit: thousand yen)

Previous fiscal year (As of May 31, 2021)

The third quarter of the reporting fiscal year (As of February 28, 2022)

Liabilities

Other 187,401

262,995

Non-current liabilities

Total non-current liabilities 1,092,222

1,172,343

Net assets

Total shareholders' equity 2,989,110

3,729,086

Valuation difference on available-for-sale securities (428)

(470)

Non-controlling interests 35,688

40,802

Current liabilities
Short-term borrowings	-	300,000
Current portion of long-term borrowings	137,100	137,100
Accounts payable - other	294,193	241,287
Accrued expenses	784,842	687,557
Income taxes payable	153,128	388,638
Advances received	769,391	-
Contract liabilities	-	827,759
Lease obligations	35,168	34,899
Total current liabilities	2,361,225	2,880,236
Long-term borrowings	788,325	885,500
Retirement benefit liability	56,133	56,622
Long-term accounts payable - other	105,283	105,283
Lease obligations	68,689	52,146
Other	73,790	72,790
Total liabilities	3,453,447	4,052,579
Shareholders' equity
Share capital	992,784	992,784
Capital surplus	42,236	42,236
Retained earnings	1,954,162	2,694,193
Treasury shares	(72)	(127)
Accumulated other comprehensive income
Total accumulated other comprehensive income	(428)	(470)
Total net assets	3,024,370	3,769,418

Total liabilities and net assets

6,477,818

7,821,998

ERI Holdings Co., Ltd. (Securities Code 6083)

(2) Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statement of Income

(Unit: thousand yen)

Net sales

10,363,833

12,001,912

Gross profit 2,697,859

4,169,875

Operating profit 22,044

1,511,738

Miscellaneous income 3,408

2,983

Non-operating expenses

Total non-operating expenses 56,604

6,614

Extraordinary losses

Total extraordinary losses 640

-

Income taxes - current 31,170

486,812

Total income taxes 52,763

587,847

Profit attributable to non-controlling interests 3,274

7,815

The third quarter of	The third quarter of
the previous fiscal year	the reporting fiscal year
(From June 1, 2020	(From June 1, 2021
to February 28, 2021)	to February 28, 2022)
Cost of sales	7,665,974	7,832,037
Selling, general and administrative expenses	2,675,814	2,658,137
Non-operating income
Interest income	22	70
Dividend income of insurance	6,956	4,694
Commission income	1,056	991
Rent revenue	5,039	5,039
Guarantee commission received	7,747	-
Surrender value of insurance policies	4,063	25,911
Insurance claim income	-	16,880
Subsidy income	92,778	7,789
Total non-operating income	121,071	64,360
Interest expenses	6,477	6,500
Loss on guarantees	49,243	-
Miscellaneous losses	882	113
Ordinary profit	86,511	1,569,484
Loss on sale of non-current assets	640	-
Profit before income taxes	85,871	1,569,484
Income taxes - deferred	21,592	101,035
Profit	33,108	981,636
Profit attributable to owners of parent	29,833	973,820