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

(% indicates year-on-yearchange)

Summary of Consolidated Financial Results

for the Second Quarter of the Fiscal Year Ending May 31, 2022 (From June 1, 2021 to November 30, 2021)

		[Japanese GAAP]
		December 28, 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:	Toshihiko Umano, President, CEO and COO
For Inquiries, Contact:	Seiichiro Matsumura, Head of Finance and Accounting Group

TEL:[phone]
Planned Date for Submission of Quarterly Securities Report:	December 28, 2021
Planned Starting Date for Dividend Payments:	January 31, 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 Second Quarter of the Fiscal Year Ending May 31, 2022 (June 1, 2021 - November 30, 2021)

(1) Consolidated Financial Results (Cumulative)

	Net Sales		Operating Profit		Ordinary Profit		Profit Attributable to
				Owners of Parent
	million yen		%	million yen		%	million yen		%	million yen		%
FY 5/2021 Q2		7,934		16.3	931		-	988		-	601		-
FY 5/2020 Q2		6,824		(8.2)	(78)		-	(14)		-	(33)		-
(Note) Comprehensive Income	FY 5/2022 Q2: 607 million yen (-%)		FY 5/2021 Q2: -30 million yen (-)
	Profit per Share		Diluted
		Profit per Share
				yen			yen
FY 5/2022 Q2				76.84			-
FY 5/2021 Q2				(4.27)			-

(2) Consolidated Financial Position

	Total Assets	Net Assets	Shareholders' Equity Ratio
	million yen	million yen	%
FY 5/2022 Q2	7,403	3,512	46.9
FY 5/2021	6,477	3,024	46.1

(Reference) Shareholders' Equity FY 5/2022 Q2: 3,474 million yen 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
		yen	yen		yen	yen	yen
FY 5/2021		-	0.00		-	15.00	15.00
FY 5/2022		-	15.00
FY 5/2022					-	25.00	40.00
(Forecast)
(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)

(% 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	15,810		9.8	1,600	297.2	1,660	250.0	1,031	289.7	131.73

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

* 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.:	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 Q2	7,832,400 shares
		FY 5/2021	7,832,400 shares
(ii)	Treasury Stock:	FY 5/2022 Q2	122shares
		FY 5/2021	85 shares
(iii)	Average Number of Shares Outstanding	FY 5/2022 Q2	7,832,306 shares
		FY 5/2021 Q2	7,771,436 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 Second Quarter of the Fiscal Year Ending May 31, 2022

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

Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheet

(Unit: thousand yen)

				Previous fiscal year	The second quarter of
				the reporting fiscal year
				(As of May 31, 2021)
				(As of November 30, 2021)
	Assets
	Current assets
	Cash and deposits			2,650,798	3,799,058
	Accounts receivable-trade	902,549	-
	Accounts receivable-trade and contract assets			-	1,125,606
	Work in process	420,120	228,242
	Other			287,865	191,369
	Total current assets	4,261,334	5,344,276
	Non-current assets
	Property, plant and equipment	531,363	502,038
	Intangible assets
	Goodwill	432,680	393,936
	Other			322,857	312,541
	Total intangible assets	755,537	706,478
	Investments and other assets
	Investment securities	1,028	1,162
	Guarantee deposits			469,228	466,123
	Deferred tax assets	403,842	363,823
	Other			55,483	19,520
	Total investments and other assets	929,583	850,630
	Total non-current assets			2,216,484	2,059,146
	Total assets		6,477,818	7,403,422

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

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

(Unit: thousand yen)

				Previous fiscal year	The second quarter of
				the reporting fiscal year
				(As of May 31, 2021)
				(As of November 30, 2021)
	Liabilities
	Current liabilities
	Current portion of long-term borrowings			137,100	137,100
	Accounts payable - other	294,193	238,579
	Accrued expenses			784,842	870,912
	Income taxes payable	153,128	331,937
	Advances received			769,391	-
	Contract liabilities	-	863,302
	Lease obligations			35,168	35,275
	Other	187,401	197,403
	Total current liabilities			2,361,225	2,674,511
	Non-current liabilities
	Long-term borrowings			788,325	919,775
	Retirement benefit liability	56,133	56,900
	Long-term accounts payable - other			105,283	105,283
	Lease obligations	68,689	60,703
	Other			73,790	73,790
	Total non-current liabilities	1,092,222	1,216,453
	Total liabilities			3,453,447	3,890,965
	Net assets
	Shareholders' equity
	Share capital	992,784	992,784
	Capital surplus			42,236	42,236
	Retained earnings	1,954,162	2,439,722
	Treasury shares			(72)	(127)
	Total shareholders' equity	2,989,110	3,474,615
	Accumulated other comprehensive income
	Valuation difference on available-for-sale	(428)	(343)
	securities
	Total accumulated other comprehensive income			(428)	(343)
	Non-controlling interests	35,688	38,185
	Total net assets			3,024,370	3,512,457
	Total liabilities and net assets		6,477,818	7,403,422

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

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

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

				(Unit: thousand yen)
			The second quarter of	The second quarter of
			the previous fiscal year	the reporting fiscal year
			(From June 1, 2020	(From June 1, 2021
			to November 30, 2020	to November 30, 2021)
	Net sales		6,824,793	7,934,079
	Cost of sales	5,103,646	5,241,600
	Gross profit		1,721,147	2,692,478
	Selling, general and administrative expenses	1,799,911	1,760,577
	Operating profit (loss)		(78,763)	931,901
	Non-operating income
	Interest income		13	126
	Dividend income of insurance	6,956	4,694
	Commission income		711	674
	Rent revenue	3,359	3,359
	Guarantee commission received		5,164	-
	Surrender value of insurance policies	4,063	25,911
	Insurance claim income		-	16,880
	Subsidy income	82,391	7,504
	Miscellaneous income		1,865	2,051
	Total non-operating income	104,525	61,203
	Non-operating expenses
	Interest expenses	4,255	4,267
	Provision for loss on guarantees		35,559	-
	Miscellaneous lossess	123	75
	Total non-operating expenses		39,938	4,343
	Ordinary profit (loss)	(14,176)	988,761
	Extraordinary losses
	Loss on sale of non-current assets	640	-
	Total extraordinary losses		640	-
	Profit (loss) before income taxes	(14,816)	988,761
	Income taxes - current		37,667	342,323
	Income taxes - deferred	(21,726)	39,376
	Total income taxes		15,941	381,700
	Profit (loss)	(30,758)	607,060
	Profit attributable to non-controlling interests		2,457	5,195
	Profit (loss) attributable to owners of parent		(33,216)	601,685