Consolidated Financial Results
for the Three Months Ended June 30, 2020 [Japanese GAAP]
August 7, 2020
Company name:MIRAIT Holdings Corporation
Stock exchange listing: TSE
Code Number:1417
URL: https://www.mirait.co.jp/
Representative:
Toshiki Nakayama, President and CEO
Contact:
Masakazu Tsukamoto, Director and CFO
Phone +81-3-6807-3124
Scheduled date for filing of quarterly report:
August 11, 2020―
Scheduled date for commencement of dividend payment:
Supplementary briefing materials on quarterly results:
Available
Quarterly results briefing:
None(Amounts are rounded down to the nearest one million)

1. Consolidated Financial Results for the Three Months Ended June 30, 2020
(April 1, 2020 to June 30, 2020)(1) Consolidated Operating Results (cumulative)(% indicates change from the same period of the previous fiscal year)
Net sales

Ordinary income%

million yen%

million yen%

million yen

%

7.4

1,740

48.4

2,560

49.8

1,279

40.5

26.2

1,173

(40.8)

1,709(27.2)

910(31.9)

million yen

Three months ended
89,546
June 30, 2020Three months ended
83,344
June 30, 2019
(Note) Comprehensive income:Three months ended June 30, 2020 (67) million yen (－%)
Three months ended June 30, 2019 1,715 million yen (-13.9%)

Net income per share

Diluted net income
per share

yen

yen

11.92

－

8.99

8.00

Three months ended
June 30, 2020Three months ended
June 30, 2019

Profit attributable toowners of parent

Operating income(2) Consolidated Financial Position
Total assets

Net assets

million yen

As of June 30, 2020
As of March 31, 2020
(Reference) Equity:

Equity ratio

million yen

316,000
352,134
As of June 30, 2020
As of March 31, 2020%

216,597
218,710
213,224 million yen
215,423 million yen

67.5
61.2

2. Dividends
Annual dividends per share
End of 1Q
yen

End of2Q
yen

End of 3Q
yenYear-end
yen

Fiscal year ended
－
－
20.00
20.00
March 31, 2020
Fiscal year ending－
March 31, 2021
Fiscal year ending－
March 31, 2021
20.00
20.00
(forecast)(Note) Revision of dividend forecasts from recently announced figures: None

Total
Yen

40.00

40.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2021
(April 1, 2020 to March 31, 2021)(% indicates change from the same period of the previous fiscal year)
Profit
Net income per
Operating income Ordinary income
attributable toshareowners of parent

Net sales

Full year ending
March 31, 2021

million yen%

million yen%

million yen%

million yen%

Yen

435,000(1.4)

22,0000.0

23,3000.4

15,5001.8

144.36(Note) Revision of financial results forecasts from recently announced figures: None

* Notes:(1) Significant changes in subsidiaries during the period under review: None
(2) Application of specific accounting practices for preparing consolidated quarterly financial statements: Yes(3) Changes in accounting principles and changes or restatements of accounting estimates:
1) Changes in accounting principles due to revision of accounting standards: None
2) Changes in accounting principles other than 1) above: None
3) Changes in accounting estimates: None
4) Restatements: None
(4) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury stock):
June 30, 2020

108,325,329 shares

March 31, 2020

108,325,329 shares2) Total number of treasury stock at the end of the period
June 30, 2020

959,393 shares

3) Average number of shares outstanding
June 30, 2020

March 31, 2020

958,390 shares

during the period

107,366,385 shares

June 30, 2019

101,326,371 shares(Note) Total number of treasury stock includes the Company’s stock held by the Board Incentive Plan trust under theCompany’s performance-linked stock remuneration program for directors and executive officers.

*
-

*
-

Implementation status of quarterly review processes
This quarterly summary of consolidated financial results is not subject to the quarterly review procedures
stipulated under the Financial Instruments and Exchange Act.

Explanation regarding the appropriate use of performance forecasts, and other items warranting
special mention
The performance forecasts and other forward-looking statements in this report are based on information
currently available to the Company and on certain assumptions deemed to be reasonable. Accordingly, actual
performance may differ materially depending on various factors.

Table of Contents: Supplementary Materials

1. Overview of Operating Results and Financial Position

P. 2(1) Overview of Operating Results for the Period under Review

P. 2(2) Overview of Financial Position for the Period under Review

P. 2(3) Future Outlook

P. 3

2. Notes to Summary Information (Explanatory Notes)

P. 3(1) Changes in Important Subsidiaries during the Period under Review

P. 3(2) Application of Specific Accounting Practices for Preparing Consolidated Quarterly Financial

P. 3

Statements
3. Consolidated Quarterly Financial Statements and Notes

P. 4(1) Consolidated Quarterly Balance Sheets

P. 4(2) Consolidated Quarterly Statements of Income and Comprehensive Income

P. 6(3) Notes to Consolidated Financial Statements

P. 8(Notes on going concern assumption)

P. 8(Notes on significant changes to shareholders’ equity)

P. 8

-1-

1. Overview of Operating Results and Financial Position(1) Overview of Operating Results for the Period under Review
During the first three months of the current consolidated period (from April 1, 2020 to June 30,2020), the Japanese economy came under significant stress following the government’s declarationof the state of emergency and call for voluntary shutdown to contain the spread of the novel
coronavirus disease (COVID-19), as well as the various restrictions imposed by other countries.
In the information and telecommunications engineering business, which is the MIRAIT Group’s
mainstay business, some projects have been delayed due to voluntary restraints and disruptionsin the delivery of construction materials. New orders have also been impacted by the COVID-19
outbreak. However, the overall business environment for the Group has remained firm.
Against this backdrop, the MIRAIT Group is committed to continue business operations as a“Comprehensive Engineering and Services Company” engaged in the building of social
infrastructure that are essential to communities, cooperating with telecommunications carriers
and other business partners in taking proactive measures to prevent the spread of COVID-19. At
the same time, the Group continues to execute initiatives for workstyle reform and to improve
operational efficiency.
During the first three months, the Group strived to secure sales by growing facility management
operations in the NTT business and air conditioning work in the Environmental and Social
Innovation business. In the ICT Solutions business, the Group completed a software development
project for a major consumer electronics retailer, and increased sales of mobile-related
construction materials and PC/ servers for educational facilities.
Meanwhile, with the aim to grow the global business in the medium- to long-term, the MIRAITGroup added YL Integrated Pte Ltd, a Singaporean company engaged in electrical construction
work, and its two subsidiaries, as consolidated subsidiaries. The Group also made the decision to
make Shanghai Changling Communication Equipment Co.,Ltd, a company based in Shanghai,
China engaged in telecommunications tower construction work and sharing services, a new
subsidiary.
As for the consolidated financial results for the first three months ended June 2020, orders
received decreased by 3.5% year-on-year to 109,104 million yen, net sales increased by 7.4% yearon-year to 89,546 million yen, operating income increased by 48.4% year-on-year to 1,740 million
yen, ordinary income increased by 49.8% year-on-year to 2,560 million yen, and net income
attributable to owners of parent increased by 40.5% year-on-year to 1,279 million yen.
(2) Overview of Financial Position for the Period under Review
Total assets at the end of the first quarter of the current consolidated fiscal period amounted to
316,000 million yen, a decrease of 36,133 million yen from the end of the previous fiscal year. Thiswas mainly due to the decrease in accounts receivables including those from completed
construction contracts and other, which more than offset the increase in costs on uncompleted
construction contracts and other.
Total liabilities decreased by 34,021 million yen from the end of the previous fiscal year, to99,402 million yen. This was mainly due to the decrease in short-term loans payable and accounts
payable for construction contracts.
Net assets decreased by 2,112 million yen to 216,597 million yen despite the net income
attributable to owners of parent of 1,279 million yen recorded for the first quarter, due to thedividend payout of 2,156 million yen.
As a result of the above, the equity ratio at the end of the first quarter stood at 67.5% (comparedwith 61.2% at the end of the previous fiscal year).

-2-(3) Future Outlook
As for the outlook, the service coverage area for fifth-generation mobile telecommunication (5G), forwhich commercial services commenced in March 2020, is expected to expand further. In addition, under the“new normal” following the lifting of the state of emergency, demand for new IT solutions is expected to increasein line with the penetration of online classes at schools and teleworking/ working from home. However, there
is no visibility as to when COVID-19 will be contained, and the sense of uncertainty is likely topersist for some time.
The Company’s forecast for the consolidated financial results for the fiscal year ending March
31, 2021 remains unchanged from that announced on May 8, 2020, given that there were no events
during the first quarter that may have a material impact on the financial performance of the
MIRAIT Group.
The Company will disclose as appropriate, any deviations from the forecast that may become
evident.
2. Notes to Summary Information (Explanatory Notes)(1) Changes in Important Subsidiaries during the Period under Review
Not applicable.
(2) Application of Specific Accounting Practices for Preparing Consolidated Quarterly Financial Statements
Calculation of tax expense
Tax expenses are calculated by reasonably estimating the effective tax rate after applying tax effectaccounting against income before income taxes for the current fiscal year, including the first quarter ended
June 30, 2020, and then multiplying income before income taxes for the three months with the said estimatedeffective tax rate.
The statutory tax rate is applied if the tax expense calculated using the estimated effective tax rate lacks
rationality to a significant degree.

-3-3. Consolidated Quarterly Financial Statements and Notes(1) Consolidated Quarterly Balance Sheets(Millions of yen)
Fiscal Year Ended
March 31, 2020Three Months Ended
June 30, 2020

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed construction
contracts and other
Costs on construction contracts in progress
Investments in leases

33,54344,978

147,584

95,16132,7586,123

40,610
5,783

5,798
(96)

5,276
(77)

225,712

191,733

Buildings and structures, net
Land38,94832,806

38,79532,807

Construction in progress
Other, net

1,383
9,457

2,295
9,383

Total property, plant and equipment

82,596

83,282Customer related assets
Goodwill

1,943
2,921

1,802
2,776

Software
Other

1,729
118

1,692
117

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Intangible assets

Total intangible assets

6,711

6,389

Investments and other assets
Investment securities

30,13927,482Retirement benefit asset
Deferred tax assets

1,967
2,081

2,016
2,070

Leasehold and guarantee deposits
Other

1,385
1,687

1,418
1,753

Allowance for doubtful accounts

(147)

(144)

Total investments and other assets

37,114

34,596

126,422

124,267

352,134

316,000

Total non-current assets
Total assets-4-

(Millions of yen)
Fiscal Year Ended
March 31, 2020Three Months Ended
June 30, 2020

Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts and other
Short-term borrowings

58,738
16,78943,721
217

Income taxes payable
Lease obligations

3,281
3,371

900
3,338

Advances received on construction contracts in progress
Provision for loss on construction contracts

4,670
959

5,813
890

Provision for bonuses
Provision for bonuses for directors (and other officers)

7,515
120

4,106
53

Provision for warranties for completed construction
Other

7
9,284

7
12,508104,738

71,558Long-term accounts payable - other
Lease obligations

213
7,607

170
7,171

Deferred tax liabilities
Deferred tax liabilities for land revaluation

1,650
41

1,318
41

128
282

131
312

17,635
172

17,638172

Total current liabilities
Non-current liabilities

Provision for retirement benefits for directors (and other officers)
Provision for share-based compensation
Retirement benefit liability
Asset retirement obligations
Other

953

885

28,68527,844133,424

99,402

Share capital
Capital surplus

7,000
69,3997,000
69,399Retained earnings
Treasury shares

135,546(1,386)

134,740(1,387)

Total shareholders' equity

210,559

209,752

4,967

4,768

(98)
(281)

(98)
(1,450)Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

-5-

276

252

4,863

3,471

3,287

3,373

218,710

216,597352,134

316,000

(2) Consolidated Quarterly Statements of Income and Comprehensive Income
Three Months Ended June 30, 2020
(Millions of yen)Three Months Ended
June 30, 2019

Three Months Ended
June 30, 2020

Net sales of completed construction contracts
Cost of sales of completed construction contracts

83,34474,69089,54680,260Gross profit on completed construction contracts

8,654

9,286

Selling, general and administrative expenses

7,481

7,546

Operating profit

1,173

1,740

29

21

Dividend income
Foreign exchange gains

466
－

556
198

Surrender value of insurance policies
Share of profit of entities accounted for using equity method

7
14

16
－

Other

103

125

Total non-operating income

621

917

Interest expenses
Share of loss of entities accounted for using equity method

9
－

11
60

Foreign exchange losses
Other

54
20

－
25

Total non-operating expenses

84

97

1,709

2,560

Gain on sales of non-current assets
Gain on sales of investment securities

394
－

2
473

Total extraordinary income

394

476

Loss on retirement of non-current assets
Loss on sales of investment securities

21
31

54
5

Other

4

17

Non-operating income
Interest income

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses

57

77

Profit before income taxes

Total extraordinary losses

2,046

2,959

Income taxes

1,133

1,622

913

1,337

910
2

1,279
57

ProfitProfit attributable toProfit attributable to owners of parent
Profit attributable to non-controlling interests-6-

(Millions of yen)Three Months Ended
June 30, 2019
Other comprehensive income
Valuation difference on available-for-sale securities

Three Months Ended
June 30, 2020

610

(197)

223
(29)

(1,183)
(23)

(1)

(0)

802

(1,405)Comprehensive income

1,715

(67)

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,711

(111)

3

43

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using
equity method
Total other comprehensive income

Comprehensive income attributable to non-controlling interests-7-(3) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes on significant changes to shareholders’ equity)
Not applicable.

-8-