ERI : Summary of Consolidated Financial Results for the Fiscal Year Ended May 31,2021

Summary of Consolidated Financial Results for the Fiscal Year Ended May 31, 2021

(From June 1, 2020 to May 31, 2021) [Japanese GAAP]

		July 13, 2021
Company Name:	ERI Holdings Co., Ltd.	Listing Exchanges: First section of the Tokyo Stock Exchange
Securities Code:	6083	URL: https://www.h-eri.co.jp/
Representative:	Akiyo Masuda, President and CEO/COO
For Inquiries, Contact:	Seiichiro Matsumura, Head of Finance and Accounting Group

TEL:[phone]
Planned Annual Shareholders' Meeting Date:		August 27, 2021
Planned Date for Submission of Annual Securities Report:	August 27, 2021
Planned Starting Date for Dividend Payments:		July 30, 2021
Supplementary documents for financial results:		Yes
Financial Results briefing:					Yes (for institutional investors and securities analysts)
								(Amounts are rounded down to the nearest million yen)
1. Consolidated Results for the Fiscal Year Ended May 31, 2021 (June 1, 2020 - May 31, 2021)
(1) Consolidated Financial Results (Cumulative)						(% indicates year-on-year change)
		Net Sales			Operating Profit	Ordinary Profit		Profit Attributable to
					Owners of Parent
		million yen	%			million yen	%	million yen		%	million yen	%
FY 5/2021		14,397	(3.0)			402	(22.2)	474		(20.7)	264	2.5
FY 5/2020		14,842	(1.6)			517	(37.0)	598		(29.3)	258	(50.6)

(Note) Comprehensive Income	FY 5/2021: 269 million yen (-0.2 %)	FY 5/2020: 270 million yen (-49.0 %)
	Profit		Diluted	Return on Equity	Ordinary Profit /		Operating Profit /
	per Share		Profit per Share		(ROE)	Total Assets		Net Sales
		yen	yen		%	%		%
FY 5/2021		33.95	-		9.3	7.2		2.8
FY 5/2020		33.69	-		9.9	8.8		3.5

(Reference) Equity in profits(losses) of affiliates FY 5/2021: -million yen FY 5/2020: -million yen

(2) Consolidated Financial Position

	Total Assets	Net Assets		Shareholders' Equity Ratio	Net Assets per Share
		million yen	million yen	%	yen
FY 5/2021		6,477		3,024	46.1	381.58
FY 5/2020		6,762		2,746	40.0	349.86
(Reference) Shareholders' Equity	FY 5/2021: 2,989 million yen	FY 5/2020: 2,705 million yen

(3) Consolidated Cash Flows

	Cash Flows from	Cash Flows from	Cash Flows from	Cash and Cash
	Operating Activities	Investing Activities	Financing Activities	Equivalents, End of Year
	million yen	million yen	million yen	million yen
FY 5/2021	209	114	(422)	2,626
FY 5/2020	371	(119)	(480)	2,725

2. Dividends

		Dividends per Share			Total	Dividend		Dividend /
							Dividends	Payout Ratio		Net Assets
				Fiscal Year
	End of Q1	End of Q2	End of Q3	Annual		(Annual)	(Consolidated)		(Consolidated)
	End
	yen	yen	yen	yen	yen		million yen	%	%
FY 5/2020	-	15.00	-	12.00	27.00	211	80.1	7.9
FY 5/2021	-	0.00	-	15.00	15.00	117	44.2	4.1
FY 5/2022	-	15.00	-	15.00	30.00			47.7
(Forecast)

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

(% indicates year-on-year change)

	Net Sales		Operating Profit	Ordinary Profit	Profit Attributable to	Profit
		Owners of Parent	per Share
	million yen		%	million yen	%	million yen	%	million yen	%	Yen
FY 5/2022	15,232		5.8	789	95.9	825	74.1	492	85.9	62.84

* 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. Accounting policies, changes in accounting estimates and errors

(i)	Changes in accounting policies associated with the revision of accounting standards, etc.:	None
(ii)	Changes in accounting policies other than (i):	None
(iii)	Changes in accounting estimates:	None
(iv)	Restatements:	None

(3) Number of shares issued (common stock)
(i)	Shares Outstanding (incl. treasury stock):	End of FY 5/2021	7,832,400 shares
		End of FY 5/2020	7,832,400 shares
(ii)	Treasury Stock:	End of FY 5/2021	85 shares
		End of FY 5/2020	98,085 shares
(iii)	Average Number of Shares Outstanding	End of FY 5/2021	7,798,876 shares
		End of FY 5/2020	7,664,342 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.

Summary of Financial Results for the Fiscal Year Ended May 31, 2021

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

Consolidated Financial Statements

(1) Consolidated Balance Sheet

				(Unit: thousand yen)
			Previous fiscal year	Reporting fiscal year
			(As of May 31, 2020)	(As of May 31, 2021)
	Assets
	Current assets
	Cash and deposits		2,725,761	2,650,798
	Accounts receivable-trade	786,998	902,549
	Work in process		439,345	420,120
	Other	337,595	287,865
	Allowance for doubtful accounts		(86)	-
	Total current assets	4,289,615	4,261,334
	Non-current assets
	Property, plant and equipment
	Buildings		379,023	387,778
	Accumulated depreciation	(110,573)	(127,532)
	Accumulated impairment loss		(10,885)	(8,331)
	Buildings, net	257,563	251,914
	Tools, furniture and fixtures		334,190	354,888
	Accumulated depreciation	(227,594)	(254,567)
	Accumulated impairment loss		(149)	(149)
	Tools, furniture and fixtures, net	106,446	100,170
	Land		92,736	92,736
	Leased assets	158,445	172,707
	Accumulated depreciation		(35,596)	(74,654)
	Accumulated impairment loss	(11,814)	(13,620)
	Leased assets, net		111,034	84,432
	Other	13,525	10,491
	Accumulated depreciation		(10,939)	(8,382)
	Other, net	2,585	2,108
	Total property, plant and equipment		570,366	531,363
	Intangible assets
	Software		360,690	321,162
	Goodwill	496,750	432,680
	Other		1,694	1,694
	Total intangible assets	859,136	755,537
	Investments and other assets
	Investment securities	1,055	1,028
	Guarantee deposits		481,816	469,228
	Deferred tax assets	405,025	403,842
	Other		155,830	55,483
	Allowance for doubtful accounts	(4)	-
	Total investments and other assets		1,043,723	929,583
	Total non-current assets	2,473,225	2,216,484
	Total assets		6,762,841	6,477,818

Summary of Financial Results for the Fiscal Year Ended May 31, 2021

				ERI Holdings Co., Ltd. (Securities Code 6083)
				(Unit: thousand yen)
			Previous fiscal year	Reporting fiscal year
			(As of May 31, 2020)	(As of May 31, 2021)
	Liabilities
	Current liabilities
	Current portion of long-term borrowings		137,100	137,100
	Accounts payable - other	280,617	294,193
	Accrued expenses		646,760	784,842
	Income taxes payable	248,514	153,128
	Advances received		869,866	769,391
	Lease obligations	33,881	35,168
	Other		307,589	187,401
	Total current liabilities	2,524,329	2,361,225
	Non-current liabilities
	Long-term borrowings	1,118,062	788,325
	Retirement benefit liability		64,512	56,133
	Long-term accounts payable - other	104,313	105,283
	Lease obligations		99,757	68,689
	Provision for loss on guarantees	67,253	-
	Other		37,714	73,790
	Total non-current liabilities	1,491,614	1,092,222
	Total liabilities		4,015,943	3,453,447
	Net assets
	Shareholders' equity
	Share capital	992,784	992,784
	Capital surplus		42,236	42,236
	Retained earnings	1,783,390	1,954,162
	Treasury shares		(112,091)	(72)
	Total shareholders' equity	2,706,319	2,989,110
	Accumulated other comprehensive income
	Valuation difference on available-for-sale	(411)	(428)
	securities
	Total accumulated other comprehensive income		(411)	(428)
	Non-controlling interests	40,988	35,688
	Total net assets		2,746,897	3,024,370
	Total liabilities and net assets		6,762,841	6,477,818

Summary of Financial Results for the Fiscal Year Ended May 31, 2021

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

1. Consolidated Statements of Income and Comprehensive Income Consolidated Statement of Income

				(Unit: thousand yen)
			Previous fiscal year	Reporting fiscal year
			(From June 1, 2019	(From June 1, 2020
			to May 31, 2020)	to May 31, 2021)
	Net sales		14,842,735	14,397,766
	Cost of sales	10,777,447	10,457,940
	Gross profit		4,065,287	3,939,825
	Selling, general and administrative expenses	3,547,765	3,536,981
	Operating profit		517,522	402,844
	Non-operating income
	Interest income		40	28
	Dividend income of insurance	8,038	6,956
	Commission income		3,710	3,290
	Surrender value of insurance policies	23,507	4,063
	Insurance claim income		29,331	-
	Rent revenue	7,487	6,718
	Guarantee commission received		10,329	8,608
	Subsidy income	-	92,826
	Gain on investments in silent partnerships		-	3,593
	Miscellaneous income	8,704	4,301
	Total non-operating income		91,148	130,387
	Non-operating expenses
	Interest expenses		9,464	8,382
	Loss on guarantees	-	49,482
	Miscellaneous loss		980	1,032
	Total non-operating expenses	10,445	58,896
	Ordinary profit		598,225	474,334
	Extraordinary income
	Gain on sales of non-current assets		519	-
	Total extraordinary income	519	-
	Extraordinary losses
	Loss on sales of non-current assets	-	640
	Impairment loss		16,521	2,160
	Provision for loss on guarantees	67,253	-
	Total extraordinary losses		83,775	2,800
	Profit before income taxes	514,970	471,534
	Income taxes - current		303,248	186,685
	Income taxes - deferred	(58,902)	15,219
	Total income taxes		244,345	201,904
	Profit	270,624	269,629
	Profit attributable to non-controlling interests		12,397	4,869
	Profit attributable to owners of parent		258,226	264,759