Third Quarter Consolidated Financial Reportfor the Nine Months Ended December 31, 2023 [Japanese GAAP]
January 29, 2024
Stock Exchange Listings Prime market of theListed company name

MIRARTH HOLDINGS, Inc.
Tokyo Stock Exchange

Security code

8897

Representative

Kazuichi Shimada, Representative Director

URL https://mirarth.co.jp/en/

Contact person

Masashi Yamamoto, Director Managing Executive Officer

Scheduled date for release of Annual Securities Report February 13, 2024

TEL +81-3-6551-2133
Scheduled date for commencement of dividend payments-Quarterly Financial Results: Preparation of Supplementary Explanations materials: None
Holding of quarterly financial results meeting: None
(Amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results of Year ending March 31, 2024 Third quarter (April 1, 2023-December 31, 2023)(1) Consolidated Operating Results (Cumulative)(Percentages indicate year-on-year changes)

Net sales

Operating income

Net income attributable toowners of parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

93,279△1.92,335

5.9243△79.4△1,461-95,081△5.02,205

△61.1

1,179

△73.5

1,804

△42.0

Year ending March 31, 2024 Thirdquarter
Year ended March 31, 2023 Third
quarter(NOTE)Comprehensive

Year ending March 31, 2024

incomeThird quarter

Millions△2,071(-%)
of yenYear ended March 31, 2023 Third

Quarterly net income per share

Quarterly diluted net income pershare

Yen

Yen

△13.30-16.52

16.39

Year ending March 31, 2024 Thirdquarter
Year ended March 31, 2023 Thirdquarter

1,175

quarter

Millionsof yen(△62.1%)(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Millions of yenMillions of yen%

Year ending March 31, 2024 Thirdquarter

378,458

62,984

14.9

Year ended March 31, 2023

341,669
Year ending March 31, 2024 Third

Reference: Shareholders' equity

65,142Millions

Year ended Marchof yen

31, 2023

56,557quarter

18.0
Millions
61,377of yen2. Dividends
Annual Cash Dividends per Share
End of first quarterEnd of second quarterEnd of third quarter

Term end

Total

Yen

Yen

Yen

Yen

Yen

Year ended March 31, 2023

-

4.00

-

18.00

22.00

Year ending March 31, 2024

-

6.00

18.00

24.00

Year ending March 31, 2024
(Forecast)(NOTE) Revisions to the most recently announced dividend forecasts: None

3. Forecast of Consolidated Financial Results of Year ending March 31, 2024 (April 1, 2023 to March 31 2024)(Percentages indicate year-on-year changes.)
Net sales

Operating income

Net income attributable toowners of parent

Ordinary income

Net income per share

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

Yen

188,71023.0

13,70094.9

12,700

152.3

8,500

85.4

77.41

Full year(NOTE) Revisions to the most recently announced earnings forecasts: None

※ Notes(1) (Changes in specified subsidiaries accompanied by changes in the scope of consolidation): None on Changes in Significant Subsidiaries in the Current Quarterly
Consolidated Cumulative period
New:-(Company name:-) Excluded:-(Company name:-)(2) Application of special accounting methods for preparing quarterly consolidated financial statements: None
(3) Changes in Accounting Policy, Changes in Accounting Estimates, and Restatements① Changes in accounting Policy due to revision of accounting standards: None
② ① Changes in Policy other than accounting: None
③ Changes in accounting estimates: None
④ Restatement of revisions: None(4) Issued shares count (Common stock)①Term end Issued shares counts (including Treasury stock)

Year ending March 31,

Year ended March 31,
121,000,000Shares2024 Third Quarter② Number of Term end Treasury stockYear ending March 31,

Year ended March 31,
10,959,807Shares2024 Third Quarter③Average number of shares during the period (quarterly

121,000,000Shares
2023
11,192,607Shares
2023

Year ending March 31,

Year ended March 31,
109,889,687Sharesconsolidated cumulative period)

2024 Third Quarter

109,275,938Shares2023 Third Quarter※ Quarterly financial results are not subject to quarterly reviews by Certified Public Accountant or Audit companies.
※ Explanation of the proper use of financial results forecasts and Other special notes
The earnings forecasts and other forward-looking statements herein are based on information currently available to the Company and on certain assumptions
deemed to be reasonable, and do not constitute guarantees by the Company of future performance. Actual results may differ materially from the forecast depending ona range of factors.

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2023

○Table of Contents of the annex

1. Qualitative Information Regarding Consolidated Financial Results for the Third Quarter of the Fiscal Year under Review

2(1) Explanation of Operating Results

2(2) Explanation of Financial Position

2(3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements

2

2. Quarterly Consolidated Financial Statements and Major Notes

3(1) Quarterly Consolidated Balance Sheets

3(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income5Quarterly Consolidated Statements of Income
Third Quarter Consolidated Cumulative Period

5Quarterly Consolidated Statements of Comprehensive Income
Third Quarter Consolidated Cumulative Period

6(3) Notes to Quarterly Consolidated Financial Statements

7(Notes on Going Concern)

7(Notes on Significant Changes in the Amount of Shareholders' Equity)

7-1-

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2023

1. Qualitative Information Regarding Consolidated Financial Results for the Third Quarter of the Fiscal Year under Review(1) Explanation of Operating Results① Results of Operations by Segment
In Real Estate Business, Net sales for this segment was 80,108 Millions of yen (down 6.0% from the same quarter of the previous fiscal year) due to factors
such as new condominiums, liquidation, new detached house sales, renewal and resale, real estate rental, real estate management, and real estate Other.
In Energy Business, Net sales of this business was 7,846 Millions of yen (up 15.9% from the same quarter of the previous year) due to the revenue fromelectricity sales at power generation facilities.
As for Asset Management Business, the business Net sales was 371 Millions of yen (down 54.4% from the same quarter of the previous year) due tomanagement fees and other factors.
In Other Businesses, Net sales of this business was 4,952 Millions of yen (up 117.4% from the same quarter of the previous year) due to construction
contracting and other factors.
Consequently, Third Quarter Consolidated Cumulative period's results of operations are as follows: Net sales 93,279 Millions of yen (down 1.9% from thesame quarter of the previous year), Operating income 2,335 Millions of yen (up 5.9% from the same quarter of the previous year), Ordinary income 243
Millions of yen (down 79.4% from the same quarter of the previous year), and net loss attributable to owners of parent 1,461 Millions of yen (compared to Net
income attributable to owners of parent of 1,804 Millions of yen in the same quarter of the previous year).

② Progress of contract execution
Regarding Third Quarter Consolidated Cumulative period sales Actual, 2,168 units were contracted for Units 2,200 units scheduled to be delivered to Full
year, and the progress rate is 98.5%.

(Contract status for new built-for-sale condominiums)
Number of contracted units
Units scheduled for delivery

Units under contract
Contract progress ratio (%)

scheduled for delivery

From April to December

Previous period

1,780

1,777

99.8

1,747

Current period

2,200

2,168

98.5

1,454

(2) Explanation of Financial Position
Assets, Liabilities and Net Assets
At the end of our Third Quarter Consolidated Accounting period, Assets, Liabilities and Net Assets of Total assets increased by 36,788 Millions of yen from378,458 Millions of yen to End of Previous Consolidated Accounting Period as a result of steady purchases of Assets for business use and other factors.

(Current Assets)
Thanks to steady purchases of business Assets and other factors, Current assets increased by 41,834 Millions of yen to 230,563 Millions of yen compared to
End of Previous Consolidated Accounting Period.

(Fixed Assets)
Despite the steady purchase of Assets for business use, Fixed assets decreased by 5,063 Millions of yen compared to 147,820 Millions of yen and End ofPrevious Consolidated Accounting Period mainly due to the transfer to Real estate for sale.

(Current Liabilities)
Due to the repayment of borrowings and other factors, Current liabilities decreased by 19,844 Millions of yen to 142,273 Millions of yen compared to End ofPrevious Consolidated Accounting Period.

(Fixed Liabilities)
Fixed liabilities increased by 58,831 Millions of yen from 173, 200 Millions of yen and End of Previous Consolidated Accounting Period due to an increasein borrowings associated with new purchases, etc.

(Net Assets)
Due to the recording of quarterly net loss attributable to owners of the parent and Dividend of surplus, Total of Net assets decreased by 2,157 Millions of yen
compared to 62,984 Millions of yen and End of Previous Consolidated Accounting Period.

(3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements
There is no change in the consolidated earnings forecast from Full year forecast announced on May 15, 2023.

-2-MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2023

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
End of Previous Consolidated AccountingPeriod(As of March 31, 2023)

Current Third Quarter Consolidated
Accounting period(As of December 31, 2023)

AssetsCurrent assets
Cash and deposits

47,872

Notes, accounts receivable-trade and contract assets

3,477

48,633
4,502

Real estate for sale

34,14753,370Power generation facilities for sale

3,375

2,998

Real estate for sale in progress

82,713102,911

Costs incurred on uncompleted contracts
Other

017

17,415

18,405△275△275

188,728

230,563

Buildings and structures (net)28,87924,603

Machinery, equipment and vehicles, net

48,70555,783

Land

41,39433,831Other (net)

6,382

4,398

125,362

118,616

Goodwill

3,9183,483

Other

4,457

4,665

Total intangible assets

8,376

8,148

19,14821,055

Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment

Total property, plant and equipment
Intangible assets

Investments and other assets
Other
Allowance for doubtful accounts△2△1

Total investments and other assets

19,14521,054

152,884

147,820

Total fixed assets
Deferred assets

56

74

341,669

378,458

Notes and accounts payable-trade

16,342

18,365

Short-term borrowings

92,06943,434

Total assets
Liabilities
Current liabilitiesCurrent portion of bonds payable

190

206

Current portion of long-term loans payable

25,997

46,389

Income taxes payable

4,318

3,968

Allowance

1,250

974

Other

21,98728,934

Total current liabilities

162,157

142,273

104,828

158,314

4,015

9,643

Fixed liabilities
Long-term loans payable
Bonds payable
Allowance

135

89

Liabilities related to retirement benefits

1,100

1,233

Other

4,290

3,918

114,369

173,200

276,527

315,473

Total Fixed liabilities
Total liabilities-3-MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2023

(Millions of yen)
End of Previous Consolidated Accounting
Period(As of March 31, 2023)

Current Third Quarter Consolidated
Accounting period(As of December 31, 2023)

Net assets
Shareholders' equity
Capital stock

4,819

Capital surplus

4,820

4,819
4,670

Retained earnings

55,971

51,874

Treasury stock△4,174△4,087

Total shareholders' equity

61,43657,276

Accumulated other comprehensive income△7196

Deferred gains or losses on hedges-△837

Foreign currency translation adjustments

312

Remeasurements of defined benefit plans

89△59△719

Net unrealized gains on available-for-sale securities

Total accumulated other comprehensive income
Subscription rights to shares220304Non-controlling interest

3,544

6,122

Total net assets

65,142

62,984

341,669

378,458

Total liabilities and net assets-4-MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2023

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Third Quarter Consolidated Cumulative Period)(Millions of yen)Previous Third Quarter Consolidated
Current Third Quarter Consolidated
Cumulative period
Cumulative period(From April 1, 2022 to December 31, 2022) (From April 1, 2023 to December 31, 2023)
Net sales

95,081

93,279

Cost of sales

75,70873,109Gross profit

19,373

20,169Selling, general and administrative expenses

17,167

17,833Operating income

2,205

2,335

Non-operating income
Interest income

1729

Dividend income

225

138

Commission received

56

56

Income from insurance claim

34226

Gain from equity method investment-192Miscellaneous income

155265

Total non-operating income

489

907

1,221

2,203

Non-operating expenses
Interest expenses
Losses from equity method investment

39-

Miscellaneous expenses

255

796

1,515

3,000

1,179243

Gain on subsequent acquisitions

601-

Gain on sales of Fixed assets

31-

Gain on sales of stock of affiliates-12632

12Impairment loss

48

448

Office relocation expenses

26

18

Extraordinary losses Total

74

467

1,737

△212-

86

1,737

△298

Total non-operating expenses
Ordinary income
Extraordinary income

Total extraordinary income
Extraordinary loss

Current net income for the quarter before income taxes and minority
interests or net loss (△) prior to distribution of gain/loss on silent
partnership
Distribution of loss in partnership
Quarterly net income (loss) (△) before income taxes and minority interests
Income taxes, inhabitant taxes and business taxes
Income tax adjustments

708

2,006

△621

△894

Total income and other taxes

86

1,112

Quarterly net income (loss) (△)

1,650△1,411

Quarterly net income (loss) (△) attributable to non-controlling interests△15449Quarterly net income (loss) (△) attributable to owners of the parent

1,804△1,461-5-

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2023

(Quarterly Consolidated Statements of Comprehensive Income)(Third Quarter Consolidated Cumulative Period)(Millions of yen)Previous Third Quarter Consolidated
Current Third Quarter Consolidated
Cumulative period
Cumulative period(From April 1, 2022 to December 31, 2022) (From April 1, 2023 to December 31, 2023)
Quarterly net income (loss) (△)

1,650△1,411Other comprehensive income
△483

167

Deferred gains or losses on hedges-△837

Foreign currency translation adjustments

58Remeasurements of defined benefit plans

30Net unrealized gains on available-for-sale securities

Total other comprehensive income
Quarterly comprehensive income

△475

△659

1,175

△2,071

1,329△2,120△15449(Comprising)
Quarterly comprehensive income attributable to owners of the parent
Quarterly comprehensive income attributable to non-controllinginterests-6-

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2023

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern)
Not applicable.
(Notes on Significant Changes in the Amount of Shareholders' Equity)
Not applicable.

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