ERI : Summary of Consolidated Financial Results for the Fiscal Year Ended May 31, 2022

Summary of Consolidated Financial Results for the Fiscal Year Ended May 31, 2022

(From June 1, 2021 to May 31, 2022) [Japanese GAAP]

		July 12, 2022
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:	Toshihiko Umano, President, CEO and COO
For Inquiries, Contact:	Seiichiro Matsumura, Head of Finance and Accounting Group

TEL:[phone]
Planned Annual Shareholders' Meeting Date:		August 30, 2022
Planned Date for Submission of Annual Securities Report:	August 30, 2022
Planned Starting Date for Dividend Payments:		July 29, 2022
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 Financial Results for the Fiscal Year Ended May 31, 2022 (June 1, 2021 - May 31, 2022)
(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 5/2022		16,148	12.2			1,924	377.8	1,986		318.7		1,228	363.9
FY 5/2021		14,397	(3.0)			402	(22.2)	474		(20.7)		264	2.5

(Note) Comprehensive Income	FY 5/2022: 1,237 million yen (358.9 %)	FY 5/2021: 269 million yen (-0.2 %)
	Profit		Diluted	Return on Equity	Ordinary Profit /	Operating Profit /
	per Share	Profit per Share	(ROE)		Total Assets	Net Sales
		yen	yen		%	%	%
FY 5/2022		156.83	-		35.2	26.4	11.9
FY 5/2021		33.95	-		9.3	7.2	2.8

(Reference) Equity in profits(losses) of affiliates FY 5/2022: - million yen FY 5/2021: - million yen

(2) Consolidated Financial Position

	Total Assets	Net Assets		Shareholders' Equity Ratio	Net Assets per Share
		million yen	million yen	%	yen
FY 5/2022		8,574		4,024	46.5	508.61
FY 5/2021		6,477		3,024	46.1	381.58
(Reference) Shareholders' Equity	FY 5/2022: 3,983 million yen	FY 5/2021: 2,988 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 5/2022	2,415	52	(210)	4,883
FY 5/2021	209	114	(422)	2,626

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 5/2021	-	0.00	-	15.00		15.00	117		44.2	4.1
FY 5/2022	-	15.00	-	25.00		40.00	313		25.5	9.0
FY 5/2023	-	20.00	-	20.00		40.00				28.3
(Forecast)
(Note) Breakdown of year-end dividend for the fiscal year ended May 31, 2022	ordinary dividend: 15.00yen	extra dividend: 10.00yen

3. Consolidated Financial Forecasts for the Fiscal Year Ending May 31, 2023 (June 1, 2022- May 31, 2023)

(% 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 5/2023	16,069		(0.5)	1,673	(13.1)	1,682	(15.3)	1,106	(9.9)	141.26

* 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.:	Yes
(ii)	Changes in accounting policies other than (i):	None
(iii)	Changes in accounting estimates:	None
(iv)	Restatements:	None

(4) Number of shares issued (common stock)
(i)	Shares Outstanding (incl. treasury stock):	FY 5/2022	7,832,400 shares
		FY 5/2021	7,832,400 shares
(ii)	Treasury Stock:	FY 5/2022	122shares
		FY 5/2021	85 shares
(iii)	Average Number of Shares Outstanding	FY 5/2022	7,832,292 shares
		FY 5/2021	7,798,876 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, 2022

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, 2021)	(As of May 31, 2022)
	Assets
	Current assets
	Cash and deposits		2,650,798	4,910,038
	Accounts receivable-trade	902,549	-
	Accounts receivable-trade and contract assets		-	1,061,643
	Work in process	420,120	248,110
	Other		287,865	264,355
	Total current assets	4,261,334	6,484,149
	Non-current assets
	Property, plant and equipment
	Buildings		387,778	384,626
	Accumulated depreciation	(127,532)	(141,934)
	Accumulated impairment		(8,331)	(8,331)
	Buildings, net	251,914	234,360
	Tools, furniture and fixtures		354,888	346,237
	Accumulated depreciation	(254,567)	(259,399)
	Accumulated impairment		(149)	(149)
	Tools, furniture and fixtures, net	100,170	86,688
	Land		92,736	92,736
	Leased assets	172,707	164,020
	Accumulated depreciation		(74,654)	(86,583)
	Accumulated impairment	(13,620)	(13,620)
	Leased assets, net		84,432	63,815
	Other	10,491	10,491
	Accumulated depreciation		(8,382)	(8,670)
	Other, net	2,108	1,821
	Total property, plant and equipment		531,363	479,423
	Intangible assets
	Software		321,162	296,055
	Goodwill	432,680	357,136
	Other		1,694	1,694
	Total intangible assets	755,537	654,886
	Investments and other assets
	Investment securities	1,028	1,026
	Guarantee deposits		469,228	461,870
	Deferred tax assets	403,842	470,661
	Other		55,483	22,895
	Total investments and other assets	929,583	956,454
	Total non-current assets		2,216,484	2,090,764
	Total assets		6,477,818	8,574,913

Summary of Financial Results for the Fiscal Year Ended May 31, 2022

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

(Unit: thousand yen)

				Previous fiscal year	Reporting fiscal year
				(As of May 31, 2021)	(As of May 31, 2022)
	Liabilities
	Current liabilities
	Current portion of long-term borrowings			137,100		137,100
	Accounts payable - other	294,193	253,515
	Accrued expenses			784,842		1,153,991
	Income taxes payable	153,128	715,255
	Advances received			769,391		-
	Contract liabilities	-	810,181
	Lease obligations			35,168		34,437
	Other	187,401	250,453
	Total current liabilities			2,361,225		3,354,934
	Non-current liabilities
	Long-term borrowings			788,325		851,225
	Retirement benefit liability	56,133	58,292
	Long-term accounts payable - other			105,283		189,307
	Deferred tax liabilities	-	619
	Lease obligations			68,689		43,492
	Other	73,790	52,045
	Total non-current liabilities			1,092,222		1,194,983
	Total liabilities	3,453,447	4,549,918
	Net assets
	Shareholders' equity
	Share capital			992,784		992,784
	Capital surplus	42,236	42,236
	Retained earnings			1,954,162		2,948,718
	Treasury shares	(72)	(127)
	Total shareholders' equity			2,989,110		3,983,611
	Accumulated other comprehensive income
	Valuation difference on available-for-sale			(428)		-
	securities
	Total accumulated other comprehensive income	(428)	-
	Non-controlling interests			35,688		41,383
	Total net assets	3,024,370	4,024,995
	Total liabilities and net assets			6,477,818		8,574,913

Summary of Financial Results for the Fiscal Year Ended May 31, 2022

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, 2020	(From June 1, 2021
			to May 31, 2021)	to May 31, 2022)
	Net sales		14,397,766	16,148,259
	Cost of sales	10,457,940	10,584,830
	Gross profit		3,939,825	5,563,429
	Selling, general and administrative expenses	3,536,981	3,638,811
	Operating profit		402,844	1,924,617
	Non-operating income
	Interest income		28	76
	Dividend income of insurance	6,956	4,694
	Commission income		3,290	3,291
	Surrender value of insurance policies	4,063	25,911
	Insurance claim income		-	16,880
	Rent revenue	6,718	5,705
	Guarantee commission received		8,608	-
	Subsidy income	92,826	8,060
	Gain on investments in silent partnerships		3,593	-
	Miscellaneous income	4,301	5,575
	Total non-operating income		130,387	70,196
	Non-operating expenses
	Interest expenses		8,382	8,387
	Loss on guarantees	49,482	-
	Miscellaneous loss		1,032	150
	Total non-operating expenses	58,896	8,538
	Ordinary profit		474,334	1,986,275
	Extraordinary income
	Gain on sale of non-current assets		-	117,101
	Total extraordinary income	-	117,101
	Extraordinary losses
	Loss on sale of non-current assets	640	-
	Impairment losses		2,160	-
	Loss on valuation of investment securities	-	677
	Loss on cancellation of leases		-	26
	Retirement benefits for officers	-	84,024
	Total extraordinary losses		2,800	84,728
	Profit before income taxes	471,534	2,018,649
	Income taxes - current		186,685	848,950
	Income taxes - deferred	15,219	(67,029)
	Total income taxes		201,904	781,920
	Profit	269,629	1,236,728
	Profit attributable to non-controlling interests		4,869	8,382
	Profit attributable to owners of parent		264,759	1,228,345