Integrated Report 2022
Fiscal year ended March 31, 2022

From Takara Leben to
MIRARTH HOLDINGSCONTENTS
Introduction
2
4

Takara Leben Co., Ltd. transitioned to a holding company structure through an absorption-type company split

About Our New Nameon October 1, 2022, and changed its name to MIRARTH HOLDINGS, Inc.
The Group has continued to grow as a general real estate business developer by providing customers with
ideal, affordable housing that anyone can buy with confidence and peace of mind. Leveraging the strengths
built on our real estate business, we will endeavor to secure sustainable growth by nurturing the energy
business and asset management business into second and third pillars of business; evolving into a company
that makes the future of people and the Earth happier.

Our Purpose
To design sustainable

Our Values
Passion & Inspiration
To be passionate about creating vibrant environments
and to inspire and be inspired by people who share
our vision.

Sustainability
To create a sustainable world where people, nature, andsociety coexist in harmony.

Value Creation
To continue to evolve and keep up with the rapid changearound us to create new value.

Diversity & Co-creation
To value each individual’s ideas and co-create a diverse
and equitable environment with the local communities.

Integrity & Trust
To generate a trusting relationship among people andsociety through protection of our safety and security.

environments for a happierfuture for both people andour planet.

MIRARTH
Mirai (Future) + EarthThis new moniker embodies our desire to evolve into
a company that makes a happier future for the Earth andits people by contributing to all communities everywhere.

At a Glance
History of the MIRARTH HOLDINGS Group

MIRARTH’s Value Creation Story
6
8
10
12
14
16

Value Creation Process
Explanation of the Value Creation Process
Risk & Opportunity
Materiality
Financial/Non-Financial Highlights
A Message from the CEO

MIRARTH’s Strategy
22
23
24
27

Review of Previous Medium-Term
Management Plans
Progress under the Medium-Term
Management Plan (FY2021 to FY2024)
A Message from the CFO
Strategies by Business Segment

MIRARTH’s Foundation
36
38
42
46
48
53
54
55
56

Sustainability in the
MIRARTH HOLDINGS Group
Together with Employees
Together with Customers andLocal Communities
Environment
Corporate Governance
Board of Directors, Auditors andExecutive Officers
Compliance
Risk Management
Interview with an Outside Director

Data
58
60
61

Eleven-Year Financial/Non-Financial Summary
Corporate Data
Stock Information

Other Disclosure Information

https://mirarth.co.jp/en/ir/ Financial Reports
M edium-term Management Plan
Materials
A nnual Securities Reports Ordinary General Meeting of
Shareholders Information Others

Editorial Policy and Cautionary Statements Regarding
Forward-Looking Statements
This report, which for the most part provides details of the Takara Leben
Group’s (currently MIRARTH HOLDINGS Group) operations in fiscal 2021,
the fiscal year ended March 31, 2022, has been designed to provide stakeholders with a deeper understanding of our business activities, management
strategies, performance, and other non-financial information, including interaction with society and the environment.
This document was prepared to provide information regarding the Company’s consolidated results in fiscal 2021 and should not be construed as asolicitation for investment in securities issued by MIRARTH HOLDINGS, Inc.
The information provided in this report is fundamentally based on data available as of March 31, 2022. Any forward-looking statements including opinions
and forecasts are based on the best judgments of management as of the time
this report was prepared. Accordingly, HIRARTH HOLDINGS does not guarantee or promise that any forward-looking statements will be realized or achievedor provide any assurance as to the accuracy or integrity of information. Moreover, the content of this report is subject to change without prior notice.

MIRARTH HOLDINGS Integrated Report 2022

1

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Strategy

MIRARTH’s Foundation

Data

At a Glance
From fiscal 2022, the MIRARTH HOLDINGS Group reorganized its operations into the four business segments, realestate, energy, asset management, and other businesses. Going forward, we will work to build a well-balanced
portfolio by expanding our energy and asset management businesses while maintaining our real estate businessas a core pillar of operations.

Real Estate Business

76.4%

With the new built-for-sale condominium business as acore pillar of our operations, we are engaged in a host ofother endeavors including the sale of detached houses,
renewal and resale of condominiums, liquidation of profitgenerating real estate for both residences and offices, aswell as the real estate rental and managementbusinesses.

Energy Business
Consolidated Net Sales

162.7

billion yen(FY2021)

The MIRARTH HOLDINGS Group generates a stableflow of earnings by selling electricity to electric powercompanies. The Group also works diligently to contributeto society by producing renewable energy. In addition torevenue gained from the sale of electric power, we arealso conducting sales of power generation facilities to the
Takara Leben Infrastructure Fund.

Asset Management
Business

Real Estate Business condominium

New built-for-sale

42.3%

 New detached house

5.3%

 Renewal resale

3.5%

 Liquidation

15.9%

 Real estate rental

3.7%

Real estate
 management

5.0% Real estate other

0.7%

21.0%

0.8%

Utilizing the Group’s wealth of expertise, knowledge, andnetworks in real estate and renewable energy, MIRARTHHOLDINGS Group is entrusted with the management of
infrastructure, J-REIT, private placement, and otherfunds. Through its asset management business, theGroup provides excellent investment opportunities andsolid asset management services.

Other Businesses

1.8%

Through its other businesses, the Group engages in awide range of activities including construction subcontracting, hotel management, and the provision of rehabilitation-oriented day care facility services.
* Data for fiscal 2021 has been reclassified and presented in each new segment.

MIRARTH HOLDINGS Group by the Numbers
2021: Nationwide ranking of condominium
units supplied sold by developer group5

Ranking: Top 10
Ranking

2021 Ranking(Units)1

Open House Group

5,423

2

Daiwa House Group

4,045

3

Nomura Real Estate Group

4,014

4

Mitsui Fudosan Group

3,982

5

Takara Leben Group

2,472

which comprised the three companies: Takara Leben Co.,

6

Anabuki Group

2,350

Ltd., Takara Leben Tohoku Co., Ltd., and Takara Leben

7

Mitsubishi Estate Group2,214

West Japan Co., Ltd., ranked 5th with a total of 2,472 con-8

Sumitomo Realty Group

2,211

dominium units. (Takara Leben ranked 11th in the number

9Mori Trust Group

2,198

of condominium units by seller/operator in 2020.)

10

Iida Group2,086

th (2021)* Source: Real Estate Economic Institute Co., Ltd.

This ranking was first collated as a group in 2021. The
Takara Leben Group (now MIRARTH HOLDINGS Group),

New built-for-sale condominium supply areas

Nationwide areas expanded to35

New built-for-sale condominium nationwide network

prefectures

The MIRARTH HOLDINGS Group aims to expand its supply area. To this end, the Group will strengthen its systemfor purchasing land throughout Japan by proactively establishing bases in areas where it does not currently have a

Bases
Supplied and purchased area

presence. We newly expanded into Kyoto prefecture infiscal 2021.

Cumulative number of new built-for-salecondominium units supplied nationwide

36,638units (As of March 31, 2022)

The MIRARTH HOLDINGS Group’s supply area extends
over roughly 30 cities of the approximately 280 cities inJapan with a population of 100,000. We will continue toactively participate in local development projects to contribute to the revitalization of the regions and increase thenumber of cities in our supply area.

Flow Businesses

Stock and Fee-Based Businesses

The core of flow businesses is the new built-for-salecondominium business, which mainly targets families, dual-income and single-person households inmetropolitan areas such as the Tokyo metropolitanarea, and active seniors in regional city centers. In
addition, the MIRARTH HOLDINGS Group is
engaged in renovating and redeveloping buildings
in partnership with government.

In the stock business, the MIRARTH HOLDINGS Groupis building stable revenue from rent, and revenue generated from over 60,000 properties managed on consignment. In addition, in the fee-based business, at
two listed investment corporations, investment management compensation was increased and thereby
established a system that does not rely on flowbusinesses.

Number of managed housing units

Rental revenues

69,335¥5.9

units (As of March 31, 2022)

billion (FY2021)

Current power generation

310

MW (As of March 31, 2022)* Including wholesale portion

2

MIRARTH HOLDINGS Integrated Report 2022

MIRARTH HOLDINGS Integrated Report 2022

3

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Strategy

MIRARTH’s Foundation

Data

History of the MIRARTH HOLDINGS GroupNet Sales¥162.7

Established as Takara Komuten Co., Ltd. in 1972, the MIRARTH HOLDINGS Group celebrated its 50th anniver-billionsary in September 2022. The Group began selling proprietarily branded condominiums in the 1990s and has

2020

steadily increased the number of units supplied as well as net sales by quickly responding to changes in cus-

Coinciding with the development ofSDGs in Japan, ZEH (Net Zero Energy House)-standard housing needs
accelerated

tomers’ lifestyles and the demands of the times. From October 2022, we as MIRARTH HOLDINGS, a company
that makes the future of people and the Earth happier, will work toward creating new value.

Surpassed¥100
billion markReal Estate-Related Milestones
1970s

1980s

1990s

2001

2006

2008

2011

2016

New availability ofhome loans

Land prices soared in
the bubble economy

After the bubble bursts, corporate factories andhousing were sold off and the development of condominium buildings on vacant land moved forward

The J-REIT market wasestablished enabling realestate investment trusts tolist on the Tokyo Stock
Exchange for the first time

With formulation and enactmentof the Basic Act for Housing,Japan’s policy shifted to encourage use of existing housing
stock with refurbishment andrenovation

The financial crisis
sparked by the Lehman
Shock led to ongoing
consolidation among
real estate companies

The Great East Japan Earthquake and other disasters
spurred strengthened efforts
to adopt seismic isolation andvibration control structures forcondominiums, as well as
securing emergency sourcesof power and other features

Compliance with energy conservation standards became
mandatory, in line with theenactment of the Building
Energy Conservation Act, alaw concerned with building
energy consumption
performance

Net sales and cumulative number of new built-for-sale condominium units supplied(Billions of yen)

100

Cumulative number of newbuilt-for-sale condominium
units supplied

36,638 units(As of March 31, 2022)(Unit)

Surpassed

Over

¥50

Net salesbillion mark

Cumulative number of units suppliedOver

40,00030,000 units

20,000 units

Surpassed

50

20,000¥10
billion mark10th 20th

anniversary

30th

anniversary

anniversary

Over

50th

40th

10,000 units

anniversary

anniversary

0

0

1972

1982

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

(For the period2022 ended March 31)

History
1972	Established as Takara
Komuten Co., Ltd. in
Yamato-cho, Itabashi-ku

1975	Purchased the Company’s head
office to the Nakaitabashi Head
Office Buildings (Dai-ichi Takara
Building)

1994	Commenced sales of the “Leben
Heim” series of condominiums

1996	Changed the name of Takara
Management Co., Ltd. to Leben
Community Co., Ltd.
1999	Undertook the absorption-type merger of
Takara Jyuhan Co., Ltd.

2000	Changed the name of Takara
Komuten Co., Ltd. to Takara
Leben Co., Ltd.

2001	Relocated the Company’s head
office to Ikebukuro following
completion of the Takara Leben
Head Office Building	Listed on the JASDAQ market

1982	Launched the real estate rental
business

2003	Listed on the Second Sectionof the Tokyo Stock Exchange

Origin of “Takara Leben”: The “Takara” that we have used in our company name since the days of “Takara Komuten” refers to “treasure,” as in a home
is the treasure of a lifetime. The word “leben” added following the change in ourcompany name is German for “life, lifestyle and living,” which are keywords
essential when discussing a home. This represents the concept of hoping tooffer homes that are the treasure of a lifetime to as many people as possible.

4

MIRARTH HOLDINGS Integrated Report 2022

2013	Entered the electric power
generation business2004	Listed on the First Sectionof the Tokyo Stock
Exchange

2006	Relocated the Company’shead office to the Shinjuku
Sumitomo Building

1986	Established Takara Jyuhan Co.,
Ltd. in an effort to expand sales
and intermediary operations
1988	Established Takara
Management Co., Ltd. as areal estate managementcompany

2008	Launched the new Takara
Leben brand	Completed steps for Takara Leben
Infrastructure Fund to be the first to
list on the Tokyo Stock Exchange
Infrastructure Fund Market
2010	Launched the detachedhouse business withdetached house built by theCompany in its own right	Established Takara AssetManagement Co., Ltd. as aninvestment management business2011	Commenced sales of custombuilt houses; exhibited
products at the Tachikawa
Housing Exhibition Center	Made Oasis Co., Ltd. (currently
Takara Leben Realnet Co., Ltd.) into
a subsidiary company

2012	Launched the new LEBEN
condominium brand	Established TAFUKO Co., Ltd.
(currently Leben Zestock Co., Ltd.)	Made the real estate rental andmanagement business Takara
Housing Co., Ltd. (formerly
Takara Property Co., Ltd.) into
a subsidiary company

Harmonic Circle: The Group’s symbol is therepresenting customers, partners, and employees;
expanding organically to create harmony while
hope of carrying out our corporate vision to “THINK
resonating with one another. The gradation ofand sincerity pursued by everyone in the Group.

2016	Made Nikko Property Co., Ltd. (currently
Leben Trust Co., Ltd.) into a subsidiarycompany

2014	Set up the Hokuriku Office	Made Nikko Kensetsu Co., Ltd.
(currently Leben Home Build Co.,
Ltd.) into a subsidiary company
2015	Made Live Net Home Co., Ltd.
(formerly Takara Leben Tohoku Co.,
Ltd.) into a subsidiary company;
relocated to Sendai City, Miyagi
Prefecture	Made Jyutakujyouhoukan Co., Ltd.
(formerly Takara Leben West Japan
Co., Ltd.) into a subsidiary company

Harmonic Circle, which is comprised of three rings,
expressing how they are linked to one another;
supporting each other. The three rings convey our
HAPPINESS AND MAKE THE HAPPINESS” while
striking blue to deep navy expresses the intelligence2017	Launched the new condominium
brand “NEBEL”

2019	Leben Trust Co., Ltd. merged(absorption-type) with Takara
Property Co., Ltd.
2021	Established Leben Funding LLC.
	Made ACA Clean Energy Co.,
Ltd. (currently Leben Clean
Energy Co., Ltd.) a subsidiary	Set up the Nagoya Office2022	Established Takara Leben(Thailand) Co., Ltd.

	Set up the Osaka Branch and the
Sapporo Office	Relocated the Company’s head office tothe TEKKO BUILDING in Marunouchi,
Chiyoda-ku
2018	Made PAG Investment Management Ltd.
(currently Takara PAG Real Estate
Advisory Ltd.) into a subsidiary company
	Established representative office of
TAKARA LEBEN CO., LTD. in Hanoi City	
Takara Leben Real Estate Investment
Corporation was listed on the Tokyo
Stock Exchange Real Estate
Investment Trust Securities Market	Transitioned to a holding
company structure andchanged its name to
MIRARTH HOLDINGS, Inc.

	Takara Leben West Japan Co.,
Ltd. changed its name to
Takara Leben Co., Ltd., took
over a portion of the businessof the former Takara Leben,
and completed the absorptiontype merger of Takara Leben
Tohoku Co., Ltd.

50th Anniversary logo: As we celebrated the 50th anniversary of our founding in September 2022, we created a commemorative logo that incorporates a
Harmonic Circle and the impression of a city skyline into the design. The circle
symbolizes the MIRARTH HOLDINGS Group’s gentle, sun-like embrace of thecity, while the five lines underneath express its achievements, accumulated overthe past 50 years, which have led to the further prosperity of cities and the Group.

MIRARTH HOLDINGS Integrated Report 2022

5

MIRARTH’s Value Creation Story

Introduction

MIRARTH’s Strategy

MIRARTH’s Foundation

Data

Value Creation Process
The MIRARTH HOLDINGS Group has continued to achieve sustainable growth by providing products and services
that address diversifying housing needs. Through the transition to a holding company, we will endeavor to provide newvalue by leveraging the strengths of the Group built up over a number of years and by harnessing Group synergies.

Materiality
External
Environment
Awareness
Details

P.10-11

Market environment

Input

Strengths• Interest-bearing debt
¥127.9 billion• Requests by powercompanies to control
outputBusiness activities• Surge in land prices aswell as raw material andconstruction (labor) costs• Difficulty in recruiting
human resources,
shortage of labor, anddecline in employee
quality

Climate change,
natural disasters, etc.
• Increasingly serious
global environmental
issues• Incidence of natural
disasters, accidents, etc.
• Acts of terrorism, riots,
and war• Spread of infectious
diseases

Governance, etc.
• Incidence ofunauthorized access andcyberattacks• Insufficient internal
control functions

Diverse human resources thatpossess expertise226• F irst-class registered architects
16•R edevelopment planners

Planning
Capabilities

Human Capital

Rebuilding andredevelopment

Mega-solar

Encouraging the strong roles ofdiverse employees

Infrastructure
funds management Real Estate Business¥124.2 billion

 Energy Business

¥34.2 billion Asset Management Business ¥1.3 billion

Housing lots
purchasing

Real estate
management

Sales

Development

RepairBrokerage Other Businesses

¥2.8 billion
P.27-35

KPI

Intellectual Capital

Real estate
rental Real Estate Business• No. of employees (consolidated)1,200(As of March 31, 2022)

 Of which, Real Estate Rental Business

Rentalmanagement

RepairSales
Capabilities• New built-for-sale condominiums
Businesses derived fromreal estate rental business Other Businesses(FY2021)

Rentalmanagement

REIT and private
fund management

7 Elements of the Medium-Term Management Plan

DetailsP.23• Group companies

11• Business locations

9Managerial
Capabilities

1.

3.

5.

Further growth of corebusinesses

Optimized businessportfolio

2.

4.

Maximized group synergies

Establishment of a stablefinancial ground

Improvement of
productivity and creationof new services throughpromotion of DX*New built-for-sale condominiums(As of March 31, 2022)

7.

6.

Personnel development
and establishment of the
rewarding workplaceenvironment

Number of managed housing units

69,335 units(As of March 31, 2022)

Proactive ESG
considerations

Rental revenues

¥5.9 billion(FY2021)

Current power generation(As of March 31, 2022)• Land and the global environment

36,638 units(Including head office andoverseas locations)

Effective use of resources

180 units

Cumulative number of units supplied(As of March 31, 2022)

Trust, reliability and acollaborative framework• New built-for-sale detached houses(FY2021)• No. of trademark registrations
26

Social and
Relationship Capital

1,830 units Asset Management Business

Foundation supporting
value creation

Human
resources

Partners (customers
and local communities)

Corporate
governanceCompliance andrisk management

P.38-41

P.42-45

P.48-52

P.54-55

Real estate notaries

226

First-class registered architects

16

Redevelopment planners

3• Percentage of women in management

7.34%• Percentage of persons with disabilities employed2.70%

Intellectual Capital

Number of units sold

 Energy Business• Acquisitions by type of qualification* Scope of calculation: Takara Leben (As of March 31, 2022)

Sales

 Of which, Real Estate Management BusinessTechnologies and expertise that
respond to customer requests• Proprietarily branded
condominiums LEBEN and NEBEL

116.8%¥18 annually(FY2021)

Details* Scope of calculation: Takara Leben

MIRARTH HOLDINGS Integrated Report 2022

•D ividend per share

billion• Training hours per employee
17.9• Nationwide power generation
facilities• TSR over the past 10 years

3

Natural Capital

6

Consolidated Net Sales¥162.7
Real Estate-Related
Businesses•R eal estate notaries

A sound financial foundation that enables
further investments for growth(FY2021)

Human Capital

343

Financial Capital

Development
Capabilities(As of March 31, 2022)•N o. of employees

OutcomeFacilities
management

Businesses derived from condominiums
equipped with solar power systems• Changes in lifestyles• Low birthrate coupledwith an aging anddeclining population

OutputFinancial Capital• S hareholders’ equity
¥58.5 billion• Deterioration in market
conditions including
political instability andeconomic recession

P.12-13

Value Chain

Ability to generate stable
cash flow• Changes in the directionof economic policy• Segmentation of housing
needs

Details

310MW*Including wholesale portion(As of March 31, 2022)

Advanced technologies and services that
respond to diversifying lifestyles• Housing performance evaluation reportacquisition rate

100%• Energy-saving rank certification rate
(Flat 35 for detached houses)

100%(FY2021)Social and Relationship Capital
Building regional revitalization and relationshipsof trust for the long term with all stakeholders• No. of new built-for-sale condominium contracts
2,258• Increase in the number of units
under management

3,298 units(FY2021)Natural Capital
Effective use of resources and initiatives forrenewable energy to reduce environmental impact• Increase in renewable energy
generation capacity• Greenhouse gas emissions

104MW
2,023 t-CO2• Energy consumption

1,131.9 kL (crude oil equivalent)
(FY2021)

MIRARTH HOLDINGS Integrated Report 2022

7

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Strategy

MIRARTH’s Foundation

Data

Explanation of the Value Creation Process
In order to contribute to the creation of cities of the future the MIRARTH HOLDINGS Group leverages our four
strengthens in advancing our transition to a “future environment design company” and by coordinating thebusinesses of each Group company. By going beyond the confines of a general real estate business developer,
we design “happiness” for society and people as a means of continuously improving our corporate value.
Input

Value Chain

OutcomeStrengths
Development Capabilities: Leveraging the real estate net-

Sales Capabilities: With eight locations throughout Japan,

work built by the Group over the past 50 years, we possess

the Group possesses an extensive network with the ability to“housing lot purchasing capabilities” and “development capabili-

serve customers in both the Tokyo Metropolitan Area and inties” that address a wide range of assets, including new built-for-regional areas. We maintain an uncompromising commitment

sale condominiums, profit-generating real estate, and solar power

to selling condominiums ourselves, and engage in sales root-

generation facilities, in a way that initiates from our value chain.

ed in the region, which has allowed us to build a strong sales

Planning Capabilities: As part of our new built-for-salecondominium, profit-generating real estate development, andMateriality
External
Environment
Awareness
Details

P.10-11

Market environment

Input

Strengths• Interest-bearing debt
¥127.9 billion• Requests by powercompanies to control
outputBusiness activities• Surge in land prices aswell as raw material andconstruction (labor) costs• Difficulty in recruiting
human resources,
shortage of labor, anddecline in employee
quality

Climate change,
natural disasters, etc.

226

• First-class registered architects
16• Redevelopment planners• Insufficient internal
control functions

Mega-solar

Encouraging the strong roles ofdiverse employees

Infrastructure
funds management Real Estate Business¥124.2 billion

 Energy Business¥34.2 billion

 Asset Management Business ¥1.3 billion

Housing lots
purchasing

Real estate
management

Sales

Development

RepairBrokerage

 Other Businesses¥2.8 billion
P.27-35

Details

KPI(As of March 31, 2022)

Real estate
rental Real Estate Business• No. of employees (consolidated)
1,200

 Of which, Real Estate Rental Business

Rentalmanagement

RepairSales
Capabilities

Businesses derived fromreal estate rental business(FY2021)

Rentalmanagement

REIT and private
fund management

7 Elements of the Medium-Term Management Plan

P.23

Details

Trust, reliability and acollaborative framework• Group companies

11• Business locations

9

1.

3.

Further growth of corebusinesses

Optimized businessportfolio

5.

2.

4.

Maximized group synergies

Establishment of a stablefinancial ground

Improvement of
productivity and creationof new services throughpromotion of DX

7.

6.

Personnel development
and establishment of the
rewarding workplaceenvironment

Number of managed housing units

69,335 units(As of March 31, 2022)

Rental revenues

Current power generation
Foundation supporting
value creation

Human
resources

Partners (customers
and local communities)

Corporate
governanceCompliance andrisk management

P.38-41

P.42-45

P.48-52

P.54-55• Land and the global environment

Redevelopment planners

3• Percentage of women in management

7.34%• Percentage of persons with disabilities employed
2.70%

310MW

*Including wholesale portion(As of March 31, 2022)• Housing performance evaluation reportacquisition rate

100%

• Energy-saving rank certification rate
(Flat 35 for detached houses)

100%(FY2021)Social and Relationship Capital
Building regional revitalization and relationshipsof trust for the long term with all stakeholders• No. of new built-for-sale condominium contracts
2,258• Increase in the number of units
under management

3,298 units(FY2021)Natural Capital
Effective use of resources and initiatives forrenewable energy to reduce environmental impact• Increase in renewable energy
generation capacity• Greenhouse gas emissions

104MW
2,023 t-CO2• Energy consumption
1,131.9 kL (crude oil equivalent)(FY2021)• Nationwide power generation
facilities

Strengths

OutputFinancial Capital: The MIRARTH HOLDINGS Group has

selves apart from our competitors using a superior level of

established a robust financial foundation for supporting sus-

design capability and a high-quality management system, andtainable growth, and strives to secure a balanced, stable finan-

are working to enhance brand strength through aggressive

cial capacity that will enable us to make agile investments

advertising.

changes in the environment. The Group is also working to diversify our financing methods by strengthening our relationships
with local financial institutions and utilizing sustainability loans.

8

proprietary service quality management system that applies

ning and sales. This approach allows us to accurately capture

the ISO 9001 international standard for quality management

the characteristics and needs of the area, and to rapidly plansystems to deliver a high level of management quality (See p.

products with high added-value that offer both a superior level43). We are expanding the number of units under managementof design characteristics and habitability. In October 2021, weby leveraging our accumulated management know-how andreceived the GOOD DESIGN AWARD in both the Housing

by acquiring many replacement properties.

(Medium/Large Sized Housing Complex) category and in the
Housing Machines/Fixtures category.

Value Chain
The MIRARTH HOLDINGS Group is building a business model

opment know-how acquired as a general real estate businessthat goes beyond the real estate business to leverage synergy

developer. In this business, we are mainly involved in the devel-

between the Group’s businesses. This effort is intended to

opment, sale, and operations of solar power generation facilities,

contribute more broadly to society as we work to become aand sell facilities to the Takara Leben Infrastructure Fund, which

company that makes the future of people and the Earth happier.

was formed by the Group. In response to the recent collapse in

The Group internally engages in every aspect of the realelectricity purchase prices under the feed-in tariff system, weestate business, from housing lot purchase to development,

have begun promoting new business ventures, such as pow-sales, real estate management, repair, and brokerage. The

er-purchasing agreements (PPA) and micro grids, as well asGroup assigns persons responsible for purchasing housing

focusing our efforts on developing wind power, biomass power,lots to each region throughout Japan so that we can acquireand other types of renewable energy facilities in addition to solar

the best properties available. The Group has been developing

power facilities.
In the asset management business, along with securing sta-society, such as supplying urban-style compact condominiums

ble profits through the long-term holding of profit-generating

and ZEH condominiums with low environmental impacts.

real estate that we have developed, we are building a balanced

Moreover, we are now focusing our efforts on managing prop-

investment and return cycle by managing these properties aserty contracts of other companies by promoting the advantag-

assets. The MIRARTH HOLDINGS Group serves as the maines of our management service quality based on SQMS®.

sponsor for listed investment funds to which Group companies

Additionally, we have been engaged in the energy businesshave outsourced asset management, and supports thesefunds’ efforts to up-scale by selling them the properties we

ies that operate under the MIRARTH HOLDINGS Groupthrough the development of solar power generating condomini-

have developed.

umbrella leverage their respective business strengths whileums equipped with solar panels on their rooftops and our devel-

mutually demonstrating synergy. Each Group company cooperates organically, and together with customers, partner companies, and local communities, contributes to the solutions forcapital. In order to address a dramatically changing businesssociety’s challenges through their business activities.

cohesive organization that promotes purpose and values.

cess in an integrated manner, from purchase to product plan-since 2013 by leveraging both our technologies acquired

resources for the MIRARTH HOLDINGS Group is our humanresources, endeavors to secure diversity, and strives to build aManagerial Capabilities: The Group employs “SQMS®,” a

Social and Relationship Capital: The ten major subsidiar-

Human Capital: One of the most important management

environment, the Group hires and trains talented humanother businesses, the Group undertakes every step of the pro-

properties that are among the first to address the demands of

Input

according to the risks and opportunities that arise from futureyears.

Advanced technologies and services that
respond to diversifying lifestyles¥5.9 billion(FY2021)(As of March 31, 2022)

Effective use of resources*New built-for-sale condominiums(As of March 31, 2022)

Proactive ESG
considerations(Including head office andoverseas locations)

Natural Capital

180 units

36,638 units

Managerial
Capabilities

16

Cumulative number of units supplied(As of March 31, 2022)

Social and
Relationship Capital• New built-for-sale detached houses(FY2021)26

226

First-class registered architects

Intellectual Capital

1,830 units Energy Business Other Businesses

Real estate notaries* Scope of calculation: Takara Leben (As of March 31, 2022)

Number of units sold
• New built-for-sale condominiums

 Asset Management Business• Acquisitions by type of qualification

Sales

 Of which, Real Estate Management BusinessTechnologies and expertise that
respond to customer requests• Proprietarily branded
condominiums LEBEN and NEBEL• Incidence ofunauthorized access andcyberattacks(FY2021)3• Incidence of natural
disasters, accidents, etc.

Governance, etc.

Planning
Capabilities* Scope of calculation: Takara Leben

Intellectual Capital

116.8%¥18 annually

Human Capital

Rebuilding andredevelopment• Training hours per employee
17.9• No. of trademark registrations• Spread of infectious
diseases• Dividend per share(FY2021)

Diverse human resources thatpossess expertise• Real estate notaries• TSR over the past 10 years

billion

Real Estate-Related
Businesses• Increasingly serious
global environmental
issues• Acts of terrorism, riots,
and war¥162.7(As of March 31, 2022)

343

Financial Capital
A sound financial foundation that enables
further investments for growth

Consolidated Net Sales

Development
Capabilities

Human Capital• No. of employees

OutcomeFacilities
management

Businesses derived from condominiums
equipped with solar power systems• Shareholders’ equity¥58.5 billion• Low birthrate coupledwith an aging anddeclining population

OutputFinancial Capital• Changes in lifestyles• Deterioration in market
conditions including
political instability andeconomic recession

P.12-13

Value Chain

Ability to generate stable
cash flow• Changes in the directionof economic policy• Segmentation of housing
needs

Details

track-record based on our know-how, accumulated over the

Natural Capital: The Group has built up an extensive
track-record ahead of our competitors in businesses that use
solar power, including establishing Takara Leben Infrastructure

Output
The MIRARTH HOLDINGS Group primarily engages in the real

responsibilities, and effectively utilize management resources,

estate, energy, and asset management businesses that pro-

we revised the business segments. As the Group’s main areavide lifestyles for people and local communities. In April 2022,

of focus, the real estate business will continue to be managed

to achieve profitability in each segment, clarify the businessunder the leadership of Takara Leben, a Group company.

OutcomeIntellectual Capital: The technologies and know-how accu-

Fund as the first listed infrastructure fund in Japan and being

mulated throughout the Group to address customer needs

one of the first to supply solar power generating condomini-

The MIRARTH HOLDINGS Group combines the real estate,ety’s challenges. We aim to achieve perpetual growth byserve as the well-spring for creating business value. With ourums. We contribute to the realization of a carbon neutral soci-energy, finance, and other businesses in to meet the diversify-

working towards the cities of the future through co-creation

multiple original condominium brands, we endeavor to set our-ety by promoting the use of renewable energy.

ing housing needs, and to contribute to the solutions for soci-with our various stakeholders.

MIRARTH HOLDINGS Integrated Report 2022

MIRARTH HOLDINGS Integrated Report 2022

9

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Strategy

MIRARTH’s Foundation

Data

Risk & Opportunity
As the risks that could have a significant impact on corporate activities have been diversifying and becoming
increasingly complex on a daily basis, the Group predicts events that may occur in the future and identifies
risks and opportunities in an effort to help resolve social issues and create value.
Social issues and external environment Changes in the direction of economic policy(Stricter laws and regulations, changes in legal
interpretation and management policy)

Governance, etc.

Climate change, natural disasters, etc.

Business activities

Market environment Changes in lifestyles

10

Risks

Creating Lifestyles with Value

Opportunities

Response

Forming Communities

Providing Comfortable Spaces of High Quality

Relevant materiality

Developing Environments and Cultures

Related medium-term management
plan strategies Decreased number of commercialization projects
due to subsidy system revisions
L ost business opportunities due to changes in FIT
 tricter regulations for energy conservation
S
S
 trengthening of regulations on building
standards

 Increase in commercialization projects due toutilization of subsidy systemO ngoing low-interest housing loans, eased tax
reduction requirements
 Introduction of new systems to replace FITP ursue new businesses such as PPA
S trengthening of information-gathering activities

 esponses to changes to business models brought byR
an ageing society and depopulation
Urban development and creating towns
Providing buildings and spaces that consider theenvironment and culture
Initiatives for renewable energy

1. Further growth of core businesses Obsolescence of products and/or services

C apture demand generation/growth opportunities
via new products and services
E xpansion in demand for compact condominiums
E xpansion of business areas

R eflection of purchaser needsD iverse product offerings
S upply compact condominiums

 upport for diversifying lifestyles and globalization
SUrban development and creating towns
Improving customer satisfactionImproving value of buildings

1. Further growth of core businesses(Growth in DINKs, dual-income households,
seniors relocating to condominiums,
development of telework) Diversification of housing needs

2. Maximized group synergies

2. Maximized group synergies
5. Improvement of productivity and creationof new services through promotion of DX Deterioration in market conditions including
political instability and economic recession Increased funding costs due to changes infinancial institution lending attitudes and financing
market conditions Intensified competition including new entrants,
and rapid environmental changes
 Deteriorating supplier operating conditions Booking of impairment losses Increase in opportunities to acquire land andproperties Increase in M&A opportunities Redouble efforts to diversify financing methods Implement ongoing performance monitoring,countermeasures Strengthening of financial management Strengthening of overseas business upport for diversifying lifestyles and globalization
SProviding safe, secure products and services
Improving customer satisfactionImproving value of buildings

3. Optimized business portfolio Low birthrate coupled with an aging anddeclining population Decreasing demand for housing Increased demand for condominiums among
seniors
 Increase in opportunities for proposing solutions
to vacant house issues and aging buildingsD evelopment of compact cities

S upply condominiums in the center of regional cities
S upply compact condominiums
S trengthening of overseas business upport for diversifying lifestyles and globalization
SResponses to changes to business models brought byan ageing society and depopulation
Urban development and creating towns

1. Further growth of core businesses Requests by power companies to control
output Decline in electricity sales revenueE xpansion of Corporate PPA Implementation of area strategies in energy businessInitiatives for renewable energy
Effective use of resources

1. Further growth of core businesses Surge in land prices as well as raw materialand construction (labor) costs

 Soaring procurement prices
D ecrease in profit
S lower sales due to higher selling prices Stabilize procurement prices mainly by diversifying
suppliers, decentralizing on a regional basis, and using
long-term contracts

Improving customer satisfactionImproving value of buildings

1. Further growth of core businesses Difficulty in recruiting human resources,
shortage of labor, and decline in employee
quality Lower product and service quality
 Incurring of compensation costs, brand image
deterioration
O ccurrence of occupational accidents Implementation of activities designed to improve
employee loyalty
P ersonnel system reform, enhancement and upgrading ofvarious training systems
 Implementation of branding penetration measuresH ousing performance evaluation report acquisitionH olding Safety Conferences, building safe implementation
management systems

 romoting compliancePEmployee health management
Encouraging employment of diverse human resources
Providing safe, secure products and services
Improving value of buildings

6. Proactive ESG considerations Increasingly serious global environmental
issues Stricter regulations for greenhouse gas usage/
emissions and energy conservationM ore stringent building standards due to stricter
laws and regulations

 Invigoration of renewable energy market due to
growing interest in environmental issuesD evelopment of renewable energy generation facilities
R eduction of carbon dioxide emissions
 ormulation of climate change policyFB uilding of internal system in compliance with external
evaluation organization standards
A cquisition of green certifications

Improving value of buildings
Providing buildings and spaces that consider theenvironment and cultureResponses to global warming
Initiatives for renewable energy
Effective use of resourcesResponses to disasters

6. Proactive ESG considerations Incidence of natural disasters, accidents,and other incidents Raw materials/component supply shortages
A sset damageD isruption to Group business facilities, supply
chains, and customers

 Increased properties needing large-scale renovation
 Increased interest in disaster-resistant buildings

P romote earthquake-proofing of buildings and facilities,
implement countermeasures for tsunamis, torrential rain,
and floods
S tockpile emergency supplies necessary for disasters
C onduct disaster preparation drills
 Introduction of safety confirmation system

 mployee health management
EImproving value of buildings
Responses to global warming
Initiatives for renewable energy
Effective use of resourcesResponses to disasters

6. Proactive ESG considerations Acts of terrorism, riots, and war

 Disruption to Group business facilities, supply
chains, and customers
G eopolitical riskS upply chain fragmentation

C onducting of credit checks on business partners
V erification of geopolitical riskS tabilize procurement prices mainly by use of diversifying
suppliers, decentralizing on a regional basis, and using
long-term contracts

 rban development and creating towns
UProviding safe, secure products and services
Responses to disasters Spread of infectious diseases Disruption to Group business facilities, supply
chains, and customers
D isruption to business operations
 ecline in hotel and tenant occupancy rates
DP romote teleworking and enhance workplace healthmanagement
D ifferentiation of products and services(equipment, meeting of specifications, installation of
telework spaces through renovation)

 mployee health management
EProviding safe, secure products and services
Improving value of buildings
Responses to disasters

5. Improvement of productivity and creationof new services through promotion of DX

S trengthening of insurance contracts and information
security systems
E nsuring of confidentiality
R estrictions on external access Establishment of internal regulations, conducting of training Identify issues and promote resolutions via Compliance &Risk Management Committee Enhancement of in-house checking system Conducting thorough compliance education

 onstruction and maintenance of a corporateCgovernance system
Promote compliance5. Improvement of productivity and creationof new services through promotion of DX Incidence of unauthorized access andcyberattacks

 Leakage of confidential information and stoppagesof production lines and logistics systems
P ayment of damages and fines,
incurring countermeasures expenses Insufficient internal control function Improper conduct, leakage of confidential
information
P ayment of damages and fines, incurring
countermeasures expenses
 Delay in response to global environmental problems

MIRARTH HOLDINGS Integrated Report 2022

C reating demand for new products and services tomeet changing lifestyles

4. Establishment of a stable financial ground3. Optimized business portfolio

2. Maximized group synergies
2. Maximized group synergies

7. Personnel development and establishmentof the rewarding workplace environment

7. Personnel development and establishmentof the rewarding workplace environment

6. Proactive ESG considerations

MIRARTH HOLDINGS Integrated Report 2022

11

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Strategy

MIRARTH’s Foundation

Data

Materiality
The MIRARTH HOLDINGS Group aims to contribute to solving social issues and achieving the Sustainable
Development Goals (SDGs) through its business by engaging in sustainability activities. The goal is to achieve
continuing development while earning the trust of stakeholders and society.

Creating Lifestyles
with Value

Key Themes
We contribute to improving the richness of people’s lifestyles by creating
new value.

Policies Provide products and services that
respond to changing social issues andneeds.
 Provide lifestyles that harmonize residents
and surrounding environments, such as
the LEBEN or NEBEL brands.

We form communities with stakeholders—such as local communities, trading partners, and employees—andaim for growth together.

Customers

Localcommunities,
NPOs, and NGOs Contributing to the revitalization of regional
areas through our regional city revitalization business, which connects urban andregional areas.

Key Issues

KPIs

 upport for diversifying lifestyles
Sand globalization
P.43
 esponses to changes to busiR
ness models brought by anageing society and depopulation

P.43

 rban development and creatU
ing towns
P.45
Customers Improve our ability to respond to risk
through thorough risk assessment andmanagement.

Forming Communities

FY2021
Stakeholders Provide opportunities and environments
where a diverse range of people can work
energetically.
 Corporate activities that can respond tosocial needs with an emphasis on dialogues with our stakeholders.

Shareholders andinvestors

Localcommunities,
NPOs, and NGOs

 onstruction and maintenanceCof a corporate governancesystemP.48

 romoting complianceP

Executives andemployees

 mployee health management
E

P.41
Trading partners

Developing Environments
and Cultures

Providing Comfortable Spacesof High Quality

Governments

We support the comfortable and safe
living of our customers by providing
products bringing great satisfaction to
our customers.

 Improve customer satisfaction levels
through the use of our proprietary Service
Quality Management System (SQMS®).
 Create housing that combines both designand habitability, pursuing the performanceof housing.
 Improve building value through regular
repairs and renovations to improve building comfort, functionality, and safety.

 ncouraging employment ofEdiverse human resources
P.40

 roviding safe, secure products
Pand servicesP.42
Customers

Executive andemployees

Improving customer satisfaction
 https://mirarth.co.jp/en/
sustainability/social/customer/
satisfaction/

Trading partners

Improving value of buildings
P.44

We contribute to a sustainable society
by actively working on environmental
issues, and at the same time, contribute to improving quality of life by providing opportunities for mental
activities such as learning and practicing the arts.

 roviding buildings and spaces
P
that consider the environmentand cultureP.47

 Reduce greenhouse gas emissions
through supplying housing with high environmental performance and our renewableenergy power generation business.
 Provide seismic-resistant and fire-resistanthousing that can withstand natural
disasters.
 Provide opportunities for cultural activities
to our stakeholders.

Customers

Localcommunities,
NPOs, and NGOs

Governments

 esponses to global warming
R

P.46
Initiatives for renewable energyP.47
 ffective use of resources
E

P.46
 esponses to disasters
R

P.42

*1 Set as a medium-term target for fiscal 2024.
*2 N umber of new projects participated in. In addition, nine projects are under construction or
being promoted.
*3 A
 nalysis based on anonymous questionnaires was conducted by an outside consulting firm,
targeting all directors and corporate auditors, including outside directors.
*4 G roup company information-sharing meetings were held to share compliance-related issues
at each company and to alert employees to such issues. Reviewed rules and regulations,shared compliance training, and deployed it company-wide.

12

MIRARTH HOLDINGS Integrated Report 2022

*5 As a result of review by the Compensation Committee, the implementation was postponed.
Continued consideration.
*6 Implemented through compliance training.
*7 Conducted interviews with each Group company, and for companies with insufficient recognition rate, reorganized displaying posters in the office and distributed portable cards toemployees to enhance the recognition.

FY2022
Targets

Results

Propose new lifestyle services

5 projects

15 projects

5 projects

Supply of new condominiums for sale overseas

3 condos*1

6 condos in 2 projects

3 projects*1

Supply of NEBEL series condominiums

3 condos

10 condos

3 condos

Redevelopment projects undertaken

2 projects

1 project*2

2 projects

Community sponsorships

10

14

10

Conduct the board effectiveness assessments*Enhancement and strengthening of corporate governance system

*4Consideration of introducing the clawback provisions

*5

Implement anti-corruption education and training

*6

Promote understanding of human rights issues among officers and employees

*6

Number of cases of adverse treatment
P.54

Targets03

0Survey to confirm the recognition rate of the whistle-blowing system

0

*

7

Percentage of employees receiving health checkups

100%

95.6%

100%

Stress check examination rate

100%

85.0%

100%

Percentage of employees taking paid leave

70%

60.1%

70%

Percentage of employees with disabilities

2.3%

2.7%

2.3%

Percentage of female managers

9.5%*1

7.34%

9.5%*1

Percentage of employees returning to work after maternity or parental leave

100%

100%

100%

Training hours per employee

24 hours

17.9 hours

24 hours

Satisfaction rate of sales staff survey

90%

89.3%

90%

Number of nonconformities related to business processes and quality standards

10 or less6

10 or less

Implementation of preventive action sharing meetings

5 times or more

4 times

5 times or more

Training of SQMS® masters

2 or more persons

4 persons

2 or more persons

Acquisition rate of housing performance evaluation certificates

100%

100%

100%

Rate of accidents and lost time injuries (*covered: employees)

0%

0%

0%

Number of lost workday injuries (*covered: employees)

0

0

0

Implementation of customer satisfaction surveys–*8

Safety meetingsOnce a year

Not held*Special patrols (safety checks)

4 times a year

3 times*10

4 times a year

Number of safety and health training sessions (*training targets: employees)

Twice a year

Twice a year

Twice a year

Results of supplier surveys

A-rank acquisition rate 90%

95.59%–*8

Rate of accidents and lost time (*target: suppliers)

1.83% or less

0%

1.83% or lessEstablishment of environmental policy–*8Acquisition and disclosure of CO2 emissions



Setting CO2 emission reduction targets

*11

9

Once a year

Percentage of houses certified for energy efficiency rating (Flat 35)

100% of detached houses

100%

100%

Sponsorship for culture fostering events

5

7

5

Acquisition of ZEH condominium certification

1

1

1

Acquisition of CASBEE certification with A rank or higher

1

1

1

Newly added generation capacity of mega-solar power plant

20MW

41MW*12

20MW*13

Total power generation

360MW*1310MW360MW*1

Maximizing effective use of resources and water–*

Formulation of manuals for BCP measures

*15

*8 N
 o plan to implement in fiscal 2022.
*9 Not implemented due to measures to prevent new COVID-19 infection. Awareness was raised
through education and the slogan displayed at each site during the Occupational Health and
Safety Preparation Month.
*10 The plan was reviewed due to a change in the internal organization.
*11 Under consideration by the Sustainability Committee established in April 2022.

14*12 Newly added wind power generation was 2MW.
*13 Revised KPI to “Newly added generation capacity of power facilities using renewable energy
sources.”*14 Internal system is being developed for quantitative data acquisition, and KPI was revised to“quantitative data acquisition and setting reduction targets.”*15 The manuals are being formulated by the Risk Management Promotion Team.

MIRARTH HOLDINGS Integrated Report 2022

13

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Strategy

MIRARTH’s Foundation

Data

Financial/Non-Financial Highlights
Net Sales

Operating Income(Millions(Millionsof yen)of yen)(Millions(Millionsof yen)of yen)200,000
200,000(%)

15,00015,000162,744
162,744

160,000
160,000

Dividend Payout Ratio

ROE

11,877
11,877

12,00012,000
9,000
9,000

15

80,00080,000

6,000
6,000

10

New
Medium-Term
Medium-TermPrevious
Previous
Medium-Term
Medium-Term
Management
Management
PlanPlan New
Management
Management
PlanPlan

0 0

3,000
3,000

New
Medium-Term
Medium-TermPrevious
Previous
Medium-Term
Medium-Term
Management
Management
PlanPlan New
Management
Management
PlanPlan

0 0

40

31.5

20

120,000
120,000

40,00040,000

(%)

25

30

11.0

20

10

5
Previous Medium-Term Management Plan

New Medium-Term
Management Plan

2019.32022.30Previous Medium-Term Management Plan

New Medium-Term
Management Plan

2019.32022.302018.32018.3 2019.3
2019.3 2020.3
2020.3 2021.3
2021.3 2022.3
2022.32018.32018.3 2019.3
2019.3 2020.3
2020.3 2021.3
2021.3 2022.3
2022.3In the fiscal year ended March 31, 2022, net sales totaled 162,744 million
yen, up 9.7% year on year. Although sales in the core new built-for-salecondominium business declined 1.6% from the plan, this 9.7% increase
was largely due to sales from liquidation, the sale of LS Chiba Katsuura
Power Generation Facility in the energy business, and an increase in revenue from the sale of electricity from operational power generation
facilities.

In the fiscal year under review, operating income increased 10.1% year
on year, to 11,877 million yen. This largely reflected contributions from thehigh earnings of residential properties developed in-house in the liquidation business.

ROE climbed two percentage points compared with the previous fiscal
year, to 11.0% in the fiscal year under review owing to the increase in net
income attributable to owners of parent. Moving forward, we will work toachieve an ROE of more than 13% in the fiscal year ending March 31,
2024 through such measures as strengthening the financial managementof Group companies, reducing selling, general and administrative expenses, and improving profit margins.

The dividend payout ratio declined 0.9 percentage points year on year to
31.5% in the fiscal year ended March 31, 2022. Under the new Medium-Term Management Plan, we have positioned shareholder returns as
one of our most important management priorities. As such, we will continue to make appropriate returns.

Net Income Attributable to Owners of Parent

Operating Income Margin

Current Power Generation

Number of Managed Housing Units(Millions(Millionsof yen)of yen)

(%)

8,000
8,000

6,000
6,000

4,000
4,000

9

7.3

3
Previous Medium-Term Management Plan

2019.32020.32021.32021.3(Units)160

40,00069,33520,000Previous Medium-Term Management Plan

2022.32020.380,00060,000

New Medium-Term
Management Plan0

2018.32018.3240

New Medium-Term
Management Plan0

2018.32018.3 2019.3
2019.3 2020.3
2020.3 2021.3
2021.3 2022.3
2022.3

310

80

New
Medium-Term
Medium-TermPrevious
Previous
Medium-Term
Medium-Term
Management
Management
PlanPlan New
Management
Management
PlanPlan

0 02021.3

320

6

2,000
2,000

2020.3

(MW)

12

6,215
6,215

2018.3

Previous Medium-Term Management Plan

New Medium-Term
Management Plan

2019.32022.302018.32019.32020.32021.32022.32018.32020.32021.3In the fiscal year under review, net income attributable to owners of parent totaled 6,215 million yen, up 32.4% compared with the previous fiscal
year. This was mainly due to the high profit margin associated with thesale of LS Chiba Katsuura Power Generation Facility, the largest built by
the Group.

In the fiscal year under review, the operating income margin came in at
7.3%, unchanged from the previous fiscal year, on the back of improvements in profit margins in the energy business.

The MIRARTH HOLDINGS Group’s current power generation, including
the portion sold, increased 104 MW compared with the previous fiscal
year, to 310 MW in the fiscal year under review owing to factors such as
the inclusion of Leben Clean Energy Co., Ltd. in the Company’s scope of
consolidation as a subsidiary.

In the real estate management business, the number of units under management is steadily increasing amounting to 69,335 as of March 31,
2022, an increase of 3,298 units compared with the previous fiscal year.
We will continue to actively acquire properties for management, including
those managed by other companies, in order to realize stable revenue asa stock business.

Equity Ratio

D/E Ratio

Percentage of Women in Management

Percentage of Persons with Disabilities Employed(%)(Times)

30

(%)

3

26.5

(%)

10

2.70

3.0

2.1
2

8

1

6

7.34

2.0

25

Previous Medium-Term Management Plan

New Medium-Term
Management Plan

20

New Medium-Term
Management Plan0

2018.32019.32020.32021.32022.3MIRARTH HOLDINGS’ equity ratio came in at 26.5% in the fiscal year
ended March 31, 2022. In a bid to achieve its fiscal 2024 target of morethan 30%, the Company is working to secure a more stable equity ratio
while diversifying fund procurement methods.

14

Previous Medium-Term Management Plan

MIRARTH HOLDINGS Integrated Report 2022

1.0
Previous Medium-Term Management Plan

New Medium-Term
Management Plan

4

2018.32019.32020.32021.32022.3For the fiscal year ended March 31, 2022, the D/E ratio was 2.1 times,
the healthiest it has been in the past five years. In the future, the Company will look to sustain a D/E ratio of less than 2.5 times each fiscal year by
maintaining its financial soundness.

Previous Medium-Term Management Plan

New Medium-Term
Management Plan

2019.32022.302018.32019.32020.32021.32022.3The percentage of women in management was 7.34% in the fiscal year
ended March 31, 2022, unchanged from the previous fiscal year. The
MIRARTH HOLDINGS Group has identified personnel development as a
key strategy and positioned efforts to promote the empowerment of
women as one of its most important measures under its new Medium-Term Management Plan. We aim to lift the percentage of women in
management to 9.5% in the fiscal year ending March 31, 2025, throughmeasures such as the development of a career system.

2018.32020.32021.3The MIRARTH HOLDINGS Group is promoting diversity and inclusion initiatives with the aim of becoming a corporate group where diverse humanresources can excel. In the fiscal year ended March 31, 2022, weachieved our target for the percentage of persons with disabilities
employed of 2.30% set for the fiscal year ending March 31, 2025. In specific terms, the percentage in the fiscal year under review was 2.70%, up
0.72 percentage points compared with the previous fiscal year.

MIRARTH HOLDINGS Integrated Report 2022

15

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Strategy

MIRARTH’s Foundation

Data

A Message from the CEO

Amid Changes in Both the Market Environment and Values
Fiscal 2021, the fiscal year ended March 31, 2022, was a

new built-for-sale condominium business, for example, theyear in which various social issues became increasingly

spread of COVID-19 has triggered an upswing in demand

pronounced and our sense of a change in values grew infor suburban areas owing to the increased incidence ofintensity.

remote work, growing interest in creating comfortable

In addition to successive waves of the COVID-19 pan-spaces, and other related trends. As people place more

demic, which show no signs of abating, operating condi-

and more value on enriching their homes, the manner intions continue to change on the back of a variety of factors

which homes are sought after is changing along with peo-including surging fuel and raw material prices, disruptions

ple’s lifestyles. Moreover, global and societal demands arein the supply chain as a result of Russia’s actions inincreasing in strength amid deepening concerns surround-Ukraine, and the sharp downturn in the value of the yen.

ing climate change and energy-related issues. Companies

Over and above the aforementioned, rapid changes inthat fail to address sustainability issues will undoubtedly

people’s values have the potential to significantly impact

face an increasingly harsh business environment.

how we should develop our business going forward. In the

Kazuichi Shimada
Representative Director

MIRARTH HOLDINGS will achieve sustainablegrowth as a company that makes the future ofpeople and the Earth happier through thetransition to a new structure.
16

MIRARTH HOLDINGS Integrated Report 2022

Transition to a Holding Company Structure
The Company marked the 50th anniversary of its founda-

a company listed on the Prime Market of the Tokyo Stocktion in September 2022. Looking ahead to the next 50 andExchange. Based on this understanding, we have taken

100 years, Takara Leben Co., Ltd. has transitioned to asteps to reorganize and transition to a new structure.

holding company structure through an absorption-type

From April 2022, in the leadup to our transition to a hold-company split on October 1, 2022 and changed its nameing company structure, we reorganized our operations into

to MIRARTH HOLDINGS, Inc. with the aim of securing its

three core mainstay and other businesses. Specifically, wesustainable growth and providing value to society together

have integrated our real estate-related activities, including

with stakeholders in the most appropriate manner possible.

the real estate sales, real estate rental, and real estate

The Group has consistently provided ideal, affordable

management businesses, as well as a portion of otherhousing that anyone can buy with confidence and peacebusinesses, into the single real estate business. At theof mind under its corporate vision of “THINK HAPPINESS

same time, we separated the management compensation

AND MAKE THE HAPPINESS”. Every effort has been

portion included in other businesses and created the asset

made to expand the scale of business by diversifying into

management business to expand financial business. The

peripheral areas through M&As and other means, centering

existing energy business, which we have been focusing on,

on our core real estate business.

remained the same. We believe this will clarify the profitabil-

Against this backdrop, we recognize the critical need toity and responsibilities of each segment while accelerating

put in place a system that allows us to make fast and flexi-

the pace of management and increasing the efficiency of

ble management decisions going forward, and to further

management resources use.

strengthen governance and sustainability management as

Aspirations Embodied in the Name “MIRARTH”
MIRARTH is a combination of the words Mirai (future in Japanese)

into a company that to makes a happier future for the Earthand Earth. This new moniker embodies our desire to evolveand its people by contributing to all communities everywhere.

MIRARTH HOLDINGS Integrated Report 2022

17

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Strategy

MIRARTH’s Foundation

Data

A Message from the CEO

The Board of Directors deliberated on whether or not to

We currently have a presence in 35 prefectures through-In the field of renewable energy, Leben Clean Energy Co.,use Takara Leben, which is a well-established name, forout Japan in our core new built-for-sale condominium busi-Ltd., which boasts strengths in the development of small-the new holding company. The decision to adopt MIRARTH

ness. Together with our energy and asset management

and medium-scale power generation facilities, was includ-reflects our determination to change our corporate identity

business, our second and third pillars of business, we

ed in the scope of consolidation as a subsidiary in 2021.

from a general real estate business developer to a future

engage in activities that are deeply rooted in the sustain-

As a group, we believe that we can contribute to local

environment design company by building a business model

ability of local communities, including housing development

authorities that are required to achieve carbon neutrality bythat contributes to society at large and not just the real

and the supply of energy. In Japan today, many regions

2050 through a variety of measures. This includes efforts

estate business.

outside major metropolitan areas are facing a host of social

aimed at commercializing regional microgrids that help real-issues, including declining birthrates, an aging society, andize a recycling-oriented society.

As part of our efforts to crystallize the holdings philosophy, we established the Regional Strategic Promotion

depopulation. Under these circumstances, the Company

Through efforts to expand our business going forward,

Department in April 2022 and initiated steps to pursue

has set the new goal of contributing to regional revitalization

we, as a member of the private sector, will engage in activi-

regional development nationwide.

across Japan by leveraging its strengths in local markets.

ties that help resolve local community issues while collaborating with local companies and local government. This
includes revitalizing regional economies and creating
employment opportunities.

Our Story“THINK HAPPINESS AND MAKE THE HAPPINESS.”This philosophy has been at the core of our practice from the start
and we have created homes and with a focus on people and their lifestyles.
However, people’s lifestyles have changed dramaticallyas computerization, digitization, and changes in infrastructures haveprogressed rapidly.
We also face a variety of issues, such as a declining birthrate, aging
population, and depopulation of rural areas.
“In these difficult times, how do we create happiness for tomorrow?”
We have been asking ourselves this question for some time.

FY2021 performance review and FY2022
quantitative goals

exceeded goals in facility sales operations. With the inclu-

MIRARTH HOLDINGS is actively engaged in carrying out

HOLDINGS’ scope of consolidation as a subsidiary com-its Medium-Term Management Plan, which covers the four-pany, purchased generation capacity in its electricity sales

year period from fiscal 2021 to fiscal 2024. Under the Plan,

operations came to 120 MW. Taking into account sched-

the Company has identified National Brand Establishment

uled projects including facilities under development, we

as its long-term vision while formulating important strate-achieved our cumulative generation capacity goal of 360

gies comprised of 7 Elements. In addition to expanding

MW set under the Medium-Term Management Plan ahead

existing businesses and maximizing group synergies, weof schedule.

sion of Leben Clean Energy Co., Ltd. in MIRARTH

Our challenge has already begun.

are working to improve productivity and create new ser-

Building on the robust results of the fiscal year undervices through the promotion of digital transformation (DX).

review, we expect to surpass our initial forecasts in fiscal

In a group-wide effort, we will integrate our real estate, energy, financeand other businesses that can encourage further our co-creation efforts
with local communities to develop better cities for the future.
We will also be expanding our businesses globally.

Standing shoulder to shoulder, Group companies are2022. With the goal of returning sales to pre-COVID-19 lev-committed to enhancing corporate value over the medium

els in the first two years of the Plan, we are targeting net

and long term by proactively addressing ESG concerns,

sales of more than 200 billion yen and net income of 10 bil-promoting personnel development, and putting in place alion yen in fiscal 2024, the final year of the Plan. For the

rewarding workplace environment.

most part, MIRARTH HOLDINGS is on track to achieve

We will tackle everchanging challenges of our time with ourdetermination to evolve into a company that can realize a happierfuture for people and our planet through power and desire to design
sustainable environments.
MIRARTH
Our company name, MIRARTH, is a combination of 2 words -- “Mirai(future)” and “Earth”, representing the trajectory of our business andstory of our existence to bring about a brighter and happier future.

18

Review of the First Year of the Medium-Term Management Plan

MIRARTH HOLDINGS Integrated Report 2022

MIRARTH HOLDINGS achieved its quantitative goals forthese goals.

net sales and each level of profit in fiscal 2021, the first year
successful in meeting its gross profit goals for both the

Improvement of productivity and creation of
new services through the promotion of DX

core new built-for-sale condominium business and key liq-

In April 2022 the MIRARTH HOLDINGS Group establisheduidation business. The energy business was especially

the DX Strategy Management Department and in May for-strong. Thanks largely to contributions from the sale of themulated the DX Policy. Referred to as Takara Leben-ism

LS Chiba Katsuura Power Generation Facility, the largest(TL-ISM), this DX Policy is based on the three concepts ofbuilt by the Group, net sales and gross profit substantially

Innovation, Synergy, and Managed Infrastructure. Here, ourof the Medium-Term Management Plan. The Company was

MIRARTH HOLDINGS Integrated Report 2022

19

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Strategy

MIRARTH’s Foundation

Data

A Message from the CEO

7 Elements of the Medium-Term Management Plan

1.
Further growth ofcore businesses

3.

5.

7.

Optimized
business portfolio

Improvement of
productivity and creationof new services throughpromotion of DX

Personnel development
and establishment of the
rewarding workplaceenvironment

2.

4.

6.

Maximized
group synergies

Establishmentof a stablefinancial ground

Proactive
ESG considerations

goal is to promote DX that is tailored to the thoughts of

only reduces risk but also leads to profitable opportunities.

each individual by clarifying the solutions that we hope to

Chaired by the Representative Director, we established therealize through DX for each target including customers andSustainability Committee to further strengthen our ESG

employees. Looking ahead, we will employ Robotic Pro-

strategy and build a more cross-functional and flexible sus-

cess Automation (RPA) to build a platform of Group man-tainability promotion system. In addition, we announced

agement information and digitize our know-how based on

our support for the Task Force on Climate-related Financial

our DX Policy. Through this digital platform, we will be bet-

Disclosures (TCFD) recommendations in June 2022 andward. By the same token, we recognize the need to cen-

Department is currently conducting interviews with all

ter placed, to engage in the centralized management ofare participating in the TCFD consortium.

trally manage Group-wide human resources and assign theemployees to gain a more detailed understanding ofright people to the right positions after taking into consider-

employees’ concerns and aspirations, we will endeavor toorganization. We will accelerate the pace of implementation

promoting the strengthening of governance, and as ofation the importance of optimization across the organiza-

put in place an environment where diverse employees canin stages over the course of 2027 with the aim of trans-

October, outside directors on the Board of Directors weretion as a whole. In meeting this challenge, we arethrive and excel while combining digital and analog infor-

forming our corporate culture, improving productivity, andin the majority. In 2021, we invited two female outsidecontemplating the use of DX. While the Human Resourcesmation in the future.

creating new services.

directors with a wealth of knowledge and experience,customer data that is currently dispersed throughout each

As a company listed on the Prime Market, we are also

increased the ratio of female directors. With its shift to a

Proactively addressing ESG concerns

holding company structure, MIRARTH HOLDINGS will be

In addition to the aforementioned focus on further existing

required to further strengthen governance. The Company

business growth as an important strategy going forward,

will therefore work to enhance the governance function

the Medium-Term Management Plan also highlights theacross the entire group, including the management struc-need to promote sustainability management. In transition-

ture of subsidiaries and affiliates.

ing to a holding company, MIRARTH HOLDINGS has taken
better primed to engage in sustainability initiatives as well

Personnel development and the establishmentof a rewarding workplace environment

as unify the Group’s awareness toward these endeavors.

Efforts to diversify and expand its business has allowed a

As a company that is engaged in the real estate andhost of the Group’s employees to excel. We recognize theenergy businesses, we recognize that addressing environ-need to maximize the creation of value by drawing out themental issues is an important management issue that notcapabilities of our talented personnel as an issue going for-steps to reorganize and establish an organization that is20

MIRARTH HOLDINGS Integrated Report 2022

Working to Become a Future Environment Design Company
Established as Takara Komuten Co., Ltd. in Itabashi-ku,

Extending beyond the boundaries of real estate to “THINKTokyo in 1972, the Company grew beyond its initial

HAPPINESS AND MAKE THE HAPPINESS.” for people, we will

detached house business into a general real estate businesswork to become a future environment design company thatdeveloper. The word Takara (treasure in Japanese) in thegrows in concert with society for the next 50 and 100 years.

Company’s original name Takara Komuten Co., Ltd.
embraces the notion of the home as the treasure of alifetime. True to the Company’s name, we have continued
to provide ideal houses for customers.
Moving forward, MIRARTH HOLDINGS will expand thescope of ideal housing to local communities and the Earth.

As we work toward achieving our goals, we ask for thecontinued support and understanding of all stakeholders.
October 2022

Kazuichi Shimada
Representative Director, Group CEO, Group COO
and President Executive Officer

MIRARTH HOLDINGS Integrated Report 2022

21

Review of Previous Medium-Term Management Plans

Progress under the Medium-Term Management Plan

Management
Indicators

Themes(FY2021 to FY2024)
Next Stage 2019
(FY2015–FY2018)

Medium-Term Management Plan
(FY2018-FY2020)“Beginning of a new era for Takara Leben”— Diversifying flow businesses and expanding
stock and fee-based businesses —Evolution through Sustainable Change— Innovation for a New Lifestyle. —FY2018  Net Sales 132,005 million yen
Gross Profit26,886 million yen
Equity Ratio
LTV
D/E Ratio
ROE

1

Further growth of core businesses
Business

Equity Ratio
LTV
D/E Ratio
ROE

Results

Strategies by Segment

26.5%
58.0%
2.2 times
9.0%

Real EstateBusiness• Profit ratio
Aim for 35% for stockand fee-based
businesses

Stock and fee-based businesses
profit ratio:

13.9 %(FY2014)33.7%   (FY2017)•T argets include families, dualincome families, single-personhouseholds, seniors• Supply of compact condominiums
that meet changes in the times[New Detached Houses]•O utskirts of Tokyo metropolitanarea, within 10 minutes walk ofstationPlan Framework and Results• Diversifying flowbusinesses
Strengthening businesses otherthan new built-for-salecondominium business in theTokyo metropolitan area

Percentage of new built-for-salecondominium units sold in local
city centers:

Real estate
management

Performance Results

51.3%

24.2%
(FY2014)(FY2017)•U
 ptake of expanding usedcondominium needs•D iversification of exit points• Optimization of the balance sheet

Current power generation:

16MW(As of the endof FY2014)• Expanding stock andfee-based businesses
Asset management business,real estate rental business, realestate management business,real estate distribution
business, etc.

103MW
(As of the endof F2017)

Number of units undermanagement:

38,700 units(As of the endof FY2014)

49,650 units(As of the endof F2017)

Net sales of real estate rental
business:

2,898 million yen 5,472 million yen(FY2014)   (FY2017)

Issues22

MIRARTH HOLDINGS Integrated Report 2022 Number of new built-for-sale condominium sold: 1,830 unitsAchieve a metropolitan area ratio of 50% in FY2024

 Metropolitan area ratio: 47.4%

Promoteactive penetration in redevelopment
projects such as station-front redevelopment andrenewal project for aging condominiums

 im for 800 to 1,000 owned units by establishing aAstable renewal business cycle Promoted the Takaoka Ekimae East Area Excellent Building Improvement

Project Number of owned units as of the period-end: 475 units Maintain the investment pace of 30 to 50 billion yen Investment amount: 30.2 billion yen

per year Sales amount: 25.8 billion yen Actively promote rental residence development Continue to increase the managed units as a stock Number of managed units: 69,335 units

business mainstay; aim for a total of over 80,000
managed unit in FY2024

 Percentage of non-Group units managed: 51.8%

Restructured the system byhandpicking the supply areas due tothe tough competitive environment
packed with contenders

Successful uptake of usedcondominium needs led to growthwith increased year-end owned units

inclusion of Leben Clean Energy Co., Ltd. in the scope of consolidation asa subsidiary Actively penetrate direct and bilateral energy trading

EnergyBusiness Osaka Gas Co., Ltd. invested in small- and medium-sized solar power Aim for a cumulative generation capacity of 360MW

generation facilities owned and operated by the Group in 82 locations

as of the end of FY2024

 Entered the biomass power generation business; Fujisan Asagiri Biomass

Power Plant commenced demonstration operations

2

Maximized group synergies

3

Optimized business portfolio Transitioned to a holding company structure

Trends in Business Portfolio

32.9%

25.4%
FY2021

The amount of both investment andsales increased; secured a high grossprofit margin from self-developed
properties

20.5%
FY2022

67.1%

 Flow Business   Stock andFee-based Business

21.7%
FY202374.6%

FY2024

79.5%

78.3%

Real Estate Rental Business•S ecuring of stable revenue

Declined due to expansion ofliquidation sales•R eplace other companies inmanagement with competitive
services

Achieved the plan throughreplacements from other company
properties• Spin-off into other businesses,
such as large-scale repair works

Electric Power Generation(Currently Energy) Business•D evelopment of environmentfriendly renewable energy• Incorporation of post facility-salecommission income Real Estate Business(Other than rental,
management and others) Real Estate Rental Business Real Estate Management
Business Real Estate Other Business Energy Business Asset Management Business Other Businesses Received an “A” rank after procuring financing based on the ESG

4

Establishment of a stable financial ground5

Improvement of productivity and creation of newservices through promotion of DX

6

Proactive ESG considerations

7

Personnel development and establishment of the
rewarding workplace environment

Management Support Loan Program provided by MUFG Bank, Ltd.
 Acquired the highest grade, “Green 1,” in the JCR Green Loan Evaluation

conducted by Japan Credit Rating Agency, Ltd.

Real Estate Management
Business

Facility sale timing was delayed due tothe postponed construction scheduleElectricity sale profits declined due
to early depreciation following
completion of large-scale projects

Other Businesses•E xpansion of revenue derived
from each segment•S chedules for completion of construction postponeddue to lengthened project schedules• Increase in assets and debt due to expanded areas ofinvestment
 ompletion of construction concentrated in the fourth•Cquarter for a large number of projects•R ising personnel expenses due to an increase inpersonnel and workstyle reforms


Restructure
the stable, nationwide supply system
Aim to record 2,600 units in sales in FY2024

 Develop a business model for de-FIT• Increase number of owned units,develop a business cycle[Liquidation]

Progress in FY2021

 Achieved the generation capacity goal of 360MW in advance following theStrong demand to purchasecondominiums for actual availability
is observed; we have built a systemwith capacity of supplying 2,000
units annually• Thorough implementation of shortterm return cycle[Renewal Resale]

Renewal resale
Liquidation

Real Estate Sales Business[New Built-for-Sale Condominiums]

Main Measures / Goals

New builtfor-salecondominium

FY2020  Net Sales 148,397 million yen
Gross Profit29,928 million yen

25.6%
60.5%
2.3 times
14.3%

Plan Framework

Medium-Term Management Plan 7 Elements FY2021 Progress

Increase in managementcompensation due to expansion ofscale of infrastructure fund and REIT

• Operating income and ordinary income fell short of goals
due to increased sales and personnel expenses
following nationwide expansion• Booked valuation write-downs of some hotel project
inventories as the impact of COVID-19 began to emerge• Facility sales schedule postponed in the electric power
generation business due to the careful selection ofprojects and delayed construction

 Established a DX policyEstablished the Sustainability Committee  Established non-financial KPIs
Endorsed the recommendations of the TCFD; participated in the TCFD Consortium nhancement of training system, active job rotation, introduction ofE
teleworking system

Performance Goals(Millions of yen)

FY2021
Initial Plan

FY2021Results

FY2022
Initial Plan

FY2022 Revised
Forecast

FY2023Plan

FY2024Plan

Net Sales

158,600

162,744

155,200

173,500

187,100

203,700

Gross Profit

29,10033,11728,40033,10035,20038,700Operating Income

7,900

11,8778,000

11,90013,20015,700Ordinary Income

7,100

10,2587,400

10,30012,50015,000Net Income Attributable to Owners of Parent

4,800

6,215

5,000

7,000

8,500

10,000Results exceeded initial plans in fiscal 2021. Buoyed byrobust sales in the real estate sales business, gross profit
surpassed forecasts. The liquidation business, in particular,significantly exceeded forecasts on the back of high profit
margins for such products as real estate rental properties

developed by the Company. Facility sales prices also
exceeded forecasts in the energy business. Accounting foreach of these factors, MIRARTH HOLDINGS has upwardly
revised forecasts for fiscal 2022.

MIRARTH HOLDINGS Integrated Report 2022

23

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Strategy

MIRARTH’s Foundation

Data

A Message from the CFO
Providing the underlying strength fora new growth phase by building a
profit structure through our three
key businesses and establishing astable financial base
Masashi Yamamoto
Director,
Group CFO and Managing Executive Officer

profit margins. Once this goal is achieved, we will then tar-sales owing to a decrease in contributions from the sale of

get an ROE of 15%, which we identified in the previous

power generation facilities, we are projecting increases in

Medium-Term Management Plan.

both revenue and earnings. This largely reflects firm trends

In recent years, MIRARTH HOLDINGS has worked dili-in the mainstay real estate business including new built-for-gently to diversify its business. Efforts have been directedsale condominiums and liquidation. For fiscal 2022, net

toward expanding into the energy, liquidation, and overseas

sales are forecast to reach 173,500 million yen, an increasebusinesses while positioning new built-for-sale condomini-of 6.6% compared with fiscal 2021. On a year-on-year

ums as a core business. In fiscal 2022, we have transitioned

basis, operating income is anticipated to come in at 11,900

to a holding company structure and are promoting sustain-

million yen, up 0.2%, ordinary income at 10,300 million yen,able growth, building a structure that allows us to make fast

up 0.4%, and net income attributable to owners of parent toand flexible management decisions, and strengthening cor-

7,000 million yen, up12.6%.

porate governance. Despite a downturn in energy business

Progress in the First Year of the Medium-Term Management Plan andSecond Year Plans

MIRARTH HOLDINGS’ Financial Strategy
Vision upon transitioning to a holding company

ness, in particular, raised funds through a syndicated green

With its transition to a holding company, MIRARTH

loan in line with the Green Loan Principles formulated by

As part of its efforts to establish a stable financial base, anclimbed 9.7%, to 162,744 million yen, operating income

HOLDINGS reorganized its business segments into thesuch institutions as the Loan Market Association as well as

important strategy under its Medium-Term Management

grew 10.1%, to 11,877 million yen, ordinary income expand-

three mainstay real estate, energy, and asset management

the Green Loan and Sustainability Linked Loan Guidelines

Plan, MIRARTH HOLDINGS is strengthening measures

ed 3.3%, to 10,258 million yen, and net income attributablebusinesses. To enhance long-term corporate value andissued by Japan’s Ministry of the Environment. Moreover,aimed at achieving an equity ratio of more than 30%, LTV

to owners of parent jumped 32.4%, to 6,215 million yen.

secure sustainable growth, we will expand significantly

MIRARTH HOLDINGS received the highest grade, Green1

beyond existing real estate boundaries.

in the JCR Green Loan Evaluation conducted by Japanof less than 60%, D/E ratio of less than 2.5 times, and an

From a financial perspective, the Company’s equity ratio

Of these three mainstay businesses, the real estate andCredit Rating Agency, Ltd. in this instance. The funds pro-March 31, 2021. On a more positive note, we achieved ourenergy businesses employ substantial assets. As a result,cured through this syndicated green loan were used toCompany focused on carrying out the 7 Elements of its

LTV ratio goal, which came in at 57.3%. As far as D/E ratio

the assets of both businesses account for a large portion

acquire the LS Iwate Hachimantai power generation facility.

Medium-Term Management Plan. We were successful inis concerned, MIRARTH HOLDINGS recorded its healthiestof the Company’s balance sheet. With this in mind, we will

In addition to these initiatives, the Company procured

achieving our goals for sales and profit on the back of contri-

ratio in the past five years, at 2.1 times. Moreover, thetake steps to improve asset efficiency by accelerating thefinancing based on the ESG Management Support Loanbutions from the sale of self-developed residences in the liq-

Company’s ROE improved two percentage points year on

cycle from investment to return while at the same time gen-

Program. This Program is available to companies thatuidation business and large electric power generation

year, to 11.0%. Our goal is to achieve an ROE of 13%

erating stable income.

achieve a certain level of results following an ESG initiative

facilities in the energy business. In addition to securing

through a host of initiatives. This includes strengthening the

As far as our three mainstay businesses are concerned,

increases in both revenue and earnings, results exceeded all

financial management of Group companies, reducing sell-

we will endeavor to put in place a more balanced earningsof our initial forecasts. On a year-on-year basis, net salesing, general and administrative expenses, and improving

structure. Moving away from an over-dependence on the real

Coupled with ongoing efforts to employ a wide array of

estate business, we will look to gradually increase the pro-financing methods, we are working to further improve ourportions of energy and asset management operating income.

financial health and reduce financing costs by actively using

ROE of more than 13%.
In fiscal 2021, the fiscal year ended March 31, 2022, thestood at 26.5%, unchanged from the fiscal year ended

Financial Position

24Ltd., based on that institution’s proprietary checklist.

off-balance schemes as required.
2018.32019.32020.32021.32022.3

Diversifying finance procurement methods

Total assets (Millions of yen)

177,588

184,893

195,448

204,315

223,473

MIRARTH HOLDINGS is diversifying its finance procure-

Shareholders’ equity (Millions of yen)

42,74747,341

50,63454,194

59,109Cash and cash equivalents (Millions of yen)

29,223

21,16535,311

39,16933,428Interest-bearing debt (Millions of yen)

106,663

111,821

114,036

118,570

127,969

Equity ratio (%)

24.1

25.6

25.9

26.5

26.5

The balance of our ESG and sustainable loans has also

LTV (loan to value) (%)

60.1

60.5

58.3

58.0

57.3

increased in recent years. As an area in which the GroupD/E ratio (times)

2.5

2.3

2.2

2.2

2.1

contributes to the resolution of environmental, energy, andROE (%)

18.6

14.3

10.9

9.0

11.0

other social issues, MIRARTH HOLDINGS’ energy busi-

MIRARTH HOLDINGS Integrated Report 2022

evaluation by Mitsubishi UFJ Research and Consulting Co.,

ment methods to fortify its ability to secure funds on a stable basis while building a robust financial structure. Drawing
on its nationwide network, the Group is actively engaged in
the procurement of funds from local financial institutions.

MIRARTH HOLDINGS Integrated Report 2022

25

Strategies by Business Segment

A Message from the CFO

Change in business segments
MIRARTH HOLDINGS’s business segments through to fiscal 2021 comprised the five real estate sales, real estate rental, realestate management, energy, and other businesses segments. From fiscal 2022, the Company reorganized its operations into thefour real estate, energy, asset management, and other businesses segments. Under this reorganization, all real estate-related activ-

Shareholder Returns Policy

ities, including real estate sales, real estate rental, and real estate management as well as sales and brokerage fees have been consolidated into the real estate business segment. Moreover, the asset management business, which was previously management

We consider the return of profits to shareholders to be one

Looking ahead, we will continue to provide appropriateof our most important management priorities and will main-

shareholder returns while at the same time boldly carrying

tain a stable dividend policy in line with our business perfor-

out strategies aimed at stabilizing our financial base andmance. Although total shareholder returns (TSR) has fallen

expanding sales and profit. We will shift from a general real

below 100% due in part to the drop in our share price, theestate business developer to a future environment design

dividend payout ratio was raised 5 percentage points fromcompany that contributes to creating cities and providing a

the 25-30% set under the previous Medium-Term Manage-

wide range of values. As such, we will strive to increase ourment Plan to 30-35% in order to realize more active share-financial and social value while achieving sustainable

holder returns while appropriately securing retained

growth for the group as a whole.

compensation included in other businesses, has been established as a new independent segment. This will allow the Company tobetter position its asset management activities as a core business pillar in the future. The energy business remains unchanged.

Review of business segments
Previous Business Segments

Real estate sales
business
New built-for-salecondominium

earnings. For fiscal 2021, we have paid an annual dividendof 18 yen per share, comprising an interim dividend of 4

New Business Segments (From April 2022)
New detached house

Real estate rental

Renewal resale

Real estate management

Liquidation

Real estate other

Energy business

Facilities saleElectricity sale

Asset managementbusiness* ‘Real estate sales business’, ‘Real estate
rental business’, ‘Real estate managementbusiness’ and part of ‘Other businesses’
were integrated into ‘Real estate business’
Management compensation in ‘Other businesses’ was changed to ‘Asset management business’

New detachedhouse

Liquidation

Real estatebusiness

Renewal resale

Real estate sales
otherNew built-for-salecondominium

Dividend per Share/Dividend Payout Ratio

yen per share and a year-end dividend of 14 yen per share,

up 4 yen from our initial forecast, for a dividend payout ratio

Dividend per share (left axis)

Dividend payout ratio (right axis)

(Yen)

(%)

25

of 31.5%. While previously projecting 14 yen per share, weplan to pay an annual dividend of 20 yen per share for fis-20

cal 2022, up 6 yen per share, in line with our higher perfor-

15

mance targets. This translates to a dividend payout ratio of

38.4
19

16

16

improve operating income, we will continue our efforts to

18
31.5

31.2

2018.3

achieve a higher dividend payout ratio.

2019.3

Real estate managementbusiness

32

Energy business

Facilities saleElectricity sale28

Other businesses
24

23.5

0

Integrated into
real estate business

36

27.0

5

Under a new organizational structure designed to further

32.4

20

14

10

31.2%.

40

Real estate rental
business

2020.32021.32022.32023.3(Forecast)

20

Sales andbrokerage fees
Managementcompensation
Revenue from
repair work

Total Shareholder Return (TSR)

Revenue fromconstruction work

450.0

Other businesses

Others

400.0
350.0
300.0
250.0

Sales by Segments(Millions of yen)

200.0
150.0
TOPIX: Share index (including dividends) of return on investment
Takara Leben (currently MIRARTH HOLDINGS) TSR

100.0
50.0
0.0
2012.32013.32014.32015.3

1 yearTakara Leben(currently MIRARTH HOLDINGS)

TOPIX

2016.32017.32018.3

3 years

2019.32020.32021.35 years2022.310 years

MIRARTH HOLDINGS Integrated Report 2022

2018.32019.32020.32021.32022.3

103,599

110,851

132,005

168,493

148,397

162,744

Real estate sales business

79,63879,341

104,823

129,649

117,200

109,152

Real estate rental business

5,056

5,472

5,829

5,965

5,753

5,950

Real estate management business

3,665

4,000

4,512

5,046

5,446

5,856

Energy business

11,10818,23910,794

20,982

13,48534,248

4,130

3,797

6,045

6,850

6,512

7,536

Real estate business

—

—

—

—

—

124,285

Energy business

—

—

—

—

—

34,248Asset management business

—

—

—

—

—

1,315

Other businesses

—

—

—

—

—

2,895

Net sales

Cumulative

Annual rate

Cumulative

Annual rate

Cumulative

Annual rate

Other businesses-15.0%

+1.7%

+0.6%

-23.0%-5.1%+116.8%+8.0%(New segments)+2.0%+31.2%+9.5%+44.3%+7.6%+183.3%+11.0%

Notes:* Total shareholder return (TSR): Total rate of return on investment that combines capital gains with dividends*T SR for Takara Leben (currently MIRARTH HOLDINGS) is calculated based on cumulative dividends and stock price fluctuations. TSR for TOPIX is calculated with a stock price index
including dividends. (Created by Takara Leben using Bloomberg data and other sources.)* TSR values in the graph are indexed to market prices as of March 31, 2012 as 100 (assuming the stock was held until March 31, 2022).

26

2017.3MIRARTH HOLDINGS Integrated Report 2022

27

Introduction

MIRARTH’s Strategy

MIRARTH’s Value Creation Story

MIRARTH’s Foundation

Data

Strategies by Business Segment

Real Estate BusinessNew built-for-sale condominium

New detached house

Business Overview

Future Initiatives

Business Overview

Review of FY2021

The new built-for-sale condominium business is a core category that accounts for around 40% of total sales. The
Group engages in the development, planning, and sale of
the LEBEN and THE LEBEN proprietarily branded series ofcondominiums and the NEBEL brand of compact urbantype condominiums. Based on the concept of ideal, affordable housing that anyone can buy with confidence andpeace of mind, the MIRARTH HOLDINGS Group provides
condominiums to a wide range of generations, focusing
mainly on dual-income households.

While the prices of condominiums for sale continue to risein both the Tokyo metropolitan and Kinki areas due to therising cost of land and construction, demand is expected
to remain strong going forward. This is largely attributable
to the ongoing low housing loan interest rate environment
coupled with the timely expansion of the housing loan tax
reduction system. Under these circumstances, net sales
are projected to increase 9.4% compared with the previous
fiscal year, to 75,400 million yen. On the earnings front,
gross profit is expected to climb 7.6% year on year, to15,600 million yen. Despite a downturn in the number ofunits sold of 2.7% compared with the previous fiscal year,
to 1,780 units, revenue and profits are projected toincrease year on year owing to the large proportion of units
planned for sale in areas with higher selling prices.
With the basic policy of rebuilding a stable, nationwide
supply system, our goal is to achieve annual sales of 2,600
units in fiscal 2025. To this end, we will continue to target ametropolitan area ratio of 50% by further promoting nationwide sales while engaging in such activities as the expansionof bases and controlling construction costs. In order to contribute to the revitalization of local communities, we will also
aggressively enter the station-front redevelopment businessand projects involving the renewal of aging condominiums.

The MIRARTH HOLDINGS Group engages in the development, planning, and sale of detached houses. Leveraging
the condominium planning and development capabilities
that it has cultivated over many years, the Group will continue to generate business synergies by engaging in businessactivities involving ready-built houses in the same residential
real estate field. The new detached house business isspearheaded by the subsidiary Leben Home Build Co., Ltd.
(formerly Nikko Takara Corporation), which focuses on
constructing high-quality, comfortable spaces with anemphasis on light, water, and air, a unique feature of thehouses built by the Company.

As a result of strategically focusing on target areas, boththe number of units sold and sales efficiency are improving.
Despite falling short of forecasts, net sales increased
61.8% compared with theprevious fiscal year, to 8,621
million yen. Gross profit grewsignificantly by 142.5% year
on year, to 1,270 million yen.

Trends in Net Sales and Gross Profit(Millions of yen)

(Millions of yen)

120,000

80,00068,91220,00014,50440,000030,000101,500
93,50021,50019,50075,40015,600

FY2021

10,000

FY2022(Forecast)

Net sales (left axis)

FY2023(Forecast)

0

FY2024(Forecast)Gross profit (right axis)

Review of FY2021
Net sales came in at 68,912 million yen in the fiscal year
under review. While this was lower than initial expectations,gross profit exceeded forecasts totaling 14,504 million yen.
Despite the impact of COVID-19, the balance between
supply and demand continued to remain strong. With sales
activities progressing more favorably than initially planned,
the number of units sold, including JV*1 projects, reached1,830 units. Looking at the composition of sales by region,
the percentage in metropolitan areas*2 was 47.4% owing to
the expansion of supply areas to regional cities.
*1 JV: Joint venture with other companies*2 Metropolitan areas: The Tokyo metropolitan, Chubu, and Kinki areas

LEBEN SENRI AOYAMADAI GRAN HIGH
(total number of units: 109 units)

LEBEN KANAZAWA WESFORT(total number of units: 53 units)

Metropolitan Area Ratio
Tokyo metropolitan

Tokyo metropolitan

area:

area:

27%

 Hokkaido area: 2%
 Tohoku area: 21%

47.4%
FY2021

Chubu area: Kanto-Koshinetsu
area: 22%
 Hokuriku area: 3%

28

Kinki area:

4%

16%

38%

 Hokkaido area: 10%
 Tohoku area: 25%
 Kanto-Koshinetsu
area: 0%
 Chugoku area: – Shikoku area: 1%

 Shikoku area: 3%

 Kyushu area: 4%

 Kyushu area: 8%(Millions of yen)

(Millions of yen)

15,00012,00010,000

8,621
1,270

13,500
1,800

1,600

5,000

0

3,000

2,000

1,000

FY2021

FY2022(Forecast)

Net sales (left axis)

FY2023(Forecast)

FY20240(Forecast)Gross profit (right axis)

Business Overview

Review of FY2021

Led by group company Leben Zestock Co., Ltd., the
MIRARTH HOLDINGS Group engages in the nationwide
purchase and resale of pre-owned condominiums underlease. In order to capitalize on the demand for pre-owned
condominiums in areas with high land value, which havebeen rapidly increasing in recent years, we are aggressively
purchasing pre-owned condominiums under lease, undertaking renovations after tenants vacate, and actively promoting resale, maximising use of the real estate network
within the MIRARTH HOLDINGS Group.

The renewal and resale of an entire building undertaken by
this business was a factor in boosting performance. As aresult, net sales climbed
48.7%, to 5,748 million yen
compared with the previous
fiscal year. On the earnings
front, gross profit grew
76.3% year on year, toConceptual image of a pre-owned
1,082 million yen.
condominium after renovation

Future Initiatives

Trends in Net Sales and Gross Profit(Millions of yen)

(Millions of yen)

10,000

1,082
5,748

4,000

7,100
5,200
700

1,100

8,500
1,300

1,800

1,200

600

2,000

Chubu area:
Kinki area:

9%4%

In addition to the impacts of the housing loan tax reduction
system and low interest rate environment, trends in the
demand for detached houses have been strong. This largely
reflects the growing need for large houses, more rooms, andgardens amid the upswing in people working from homeduring the pandemic. Against this backdrop, the MIRARTHHOLDINGS Group has set the target for the number of units
sold at 220 for fiscal 2022, up 22.2% year on year, and 270
units for fiscal 2024, up 50.0% compared with fiscal 2021.
Moving forward, the Group will work diligently to put in place ashort-term return cycle while rebuilding the purchase and supply system by enhancing area marketing.

Renewal resale

6,000

FY2022(Forecast)

12,200

1,600

8,000

 Hokuriku area: 3%

 Chugoku area: –MIRARTH HOLDINGS Integrated Report 2022

50.6%

Trends in Net Sales and Gross Profit

LEBEN PLATZ KAMEARI III

Future Initiatives

0

FY2021

Net sales (left axis)

FY2022(Forecast)

FY2023(Forecast)

FY2024

The number of units sold, net sales, and gross profit are all
projected to decrease year on year in fiscal 2022. This ismainly due to a decrease in single-building renewal projects. Aiming to establish an even more stable renewal business cycle, we will continue to aggressively secure
inventory by strengthening the purchase of properties.

0(Forecast)Gross profit (right axis)

MIRARTH HOLDINGS Integrated Report 2022

29

Introduction

Liquidation
Business Overview
In its liquidation business, the MIRARTH HOLDINGS Group
engages in the development of properties such as rental
residences and offices as well as their sale including entire
buildings to real estate funds. In the real estate sales, the liquidation business follows the new built-for-sale condominium
business as the second principal pillar, accounting for approximately 20% of total sales and gross profit. Roughly 70 to
80% of the properties developed in this business are sold to
Takara Leben Real Estate Investment Corporation. As such,
the Group plays an important role in supporting the growthof the investment corporation.

36,900developed by Takara Leben. Specifically, net sales in theliquidation business totaled 25,870 million yen, comprised
largely of residential and office properties sold to Takara
Leben Real Estate Investment Corporation, in which Takara
Leben is a main sponsor. The investment amounted to30,217 million yen, 68% of which was in residences.
Investment Amount
Retail and logistics:

7%

6%
Offices: 19%
Hotels:

30,00020,000

5,600

5,191
25,870

5,100

5,100

FY2022

FY2023(Forecast)

Net sales (left axis)

million yen

Future Initiatives

6,000

While office buildings continue to account for a high percentage of the growing number of real estate properties
being securitized, residential and logistics facilities that are
expected to generate stable rental income are also major
targets for securitization. The MIRARTH HOLDINGS Groupwill actively promote the development of rental residences
and optimize its asset portfolio based on the basic policy ofcontinuing to invest 30 to 50 billion yen each fiscal year. In
addition to aggressively promoting the development ofrental residences, we will engage in developing environmentally friendly properties.

2,000

FY2021

68%

8,000

4,000

10,000030,217

Residences:

FY2021

36,000(Forecast)

FY20240(Forecast)Gross profit (right axis)

Review of FY2021
Both net sales and gross profit exceeded forecasts owing
to the sales of five LUXENA luxury rental condominiums

Real estate rental
Review of FY2021

As a lender, the MIRARTH HOLDINGS Group engages in therental of real estate including condominiums and offices. We
work to secure stable income by actively acquiring rental
properties nationwide. The subsidiary Leben Trust Co., Ltd.
plays a leading role in securing rental property tenants.
Real estate rental income generated while temporarily
holding properties acquired and developed in the liquidation
business until they are sold is also included in real estate
rental revenues.

Net sales amounted to 5,950 million yen, up 3.4% year on
year, on the back of rental income from apartments, condominiums, office buildings, and other properties. Gross profit
came to 1,488 million yen, up 25.7% year on year. Accounting for the aforementioned, the real estate rental business is
exhibiting steady progress largely in line with the previous fiscal year.

(Millions of yen)

7,500

8,000

6,000

4,000

5,950
1,488

6,200

(Millions of yen)

3,000

6,500

1,650

2,000

1,700

2,000

Net sales (left axis)

30

FY2022(Forecast)

FY2023(Forecast)

FY2024(Forecast)

0(Millions of yen)

10,000
8,000
6,000

8,700

8,084

8,800

3,000

2,200

2,100

2,000

1,799

(Millions of yen)

9,200

In addition to liquidation,
we will work to accumulate
stable rental income
through long-term ownership as a pillar of the stockbusiness.

2,400
1,800

4,000

1,200

2,000

600

0

FY2021

FY2022(Forecast)

Net sales (left axis)

FY2023(Forecast)

FY20240(Forecast)Gross profit (right axis)

Future Initiatives
The condominium management market is projected toremain on an upward trend as the number of condominiums
for sale increases and management fees climb in tandemwith such factors as rising sales prices and the upgrade ofcommon spaces. Under these circumstances, we arepromoting the acquisition of replacement projects with aview to acquiring such peripheral businesses as large-scale
repair and maintenance work. Additionally, we plan toincrease the number of units by 4,465 in fiscal 2022 for a
cumulative total of 73,800 units. We will also target further
increases in the number of managed units in line with thebasic policy of securing stable income as a stock business.

Real estate other
Business Overview

Review of FY2021

Through its real estate other business, the MIRARTHHOLDINGS Group acts as an intermediary in the purchase andsale of properties. Leveraging wide-ranging resources such as
the properties for sale supplied by MIRARTH HOLDINGSGroup, managed properties, and rental properties, we arestrengthening the real estate distribution business.

Net sales and gross profit came to 1,097 million yen and
1,070 million yen, respectively, buoyed by such factors as
sales agency, brokerage, and distribution fees.

3,730

4,000

3,100
3,000

2,100

2,000

1,000

0

Net sales

Future Initiatives

1,097
1,070
FY20211,300

FY2022(Forecast)

1,600

FY2023(Forecast)

1,830

Future Initiatives
In fiscal 2022, net sales are forecast to come in at 2,100
million yen, an increase of 91.3% compared with the fiscal
year under review. Gross profit is projected to reach 1,300
million yen, up 21.5% year on year. Moving forward, we will
work to increase revenues further and expand our businessin accordance with the growth in fee income from eachbusiness.

FY2024(Forecast)Gross profit

Completion of an Environmentally Friendly Logistics Facility

1,000

FY2021

While the number of properties managed on consignment
fell slightly short of the forecast of 70,000, at 69,335, both
net sales and gross profit increased compared with the previous fiscal year. Through replacement, the percentage of
non-Group units managed came to 51.8%.

(Millions of yen)

2,000

0

Review of FY2021

In addition to the management of new built-for-sale condominium of the MIRARTH HOLDINGS Group, Group company Leben Community Co., Ltd. actively manages properties
handled by other companies. Through these activities,
Leben Community is steadily expanding the number of managed units. In our real estate management business, we also
manage rental properties on behalf of property owners.

Trends in Net Sales and Gross Profit

Business Overview

Trends in Net Sales and Gross Profit

Business Overview

Trends in Net Sales and Gross Profit(Millions of yen)

36,000

Data

Real estate management

Trends in Net Sales and Gross Profit
40,000MIRARTH’s Foundation

Real Estate Business

Strategies by Business Segment(Millions of yen)

MIRARTH’s Strategy

MIRARTH’s Value Creation Story

L.Biz Ochanomizu

The MIRARTH HOLDINGS Group completed construction of its first logistics facility, the Noda City Nakazato
Logistics Facility, in Chiba Prefecture in March 2022. This is a new initiative undertaken through the liquidation
business, a major segment of the Group. Under the Group policy of “environmentally friendly property development,”
the facility has been equipped with a rooftop photovoltaic power generation system as a part of efforts to realize
a decarbonized society. Electricity generated by the photovoltaic power generation system can be used to power
the facility. The facility is also an example of asset portfolio optimization in our business, which focuses on residences
and offices mainly located in major cities. Looking ahead, we will continue to develop long-term holdings ofincome-producing real estate and make stable investments as part of our liquidation business.
The Noda City Nakazato Logistics Facility

Gross profit (right axis)

MIRARTH HOLDINGS Integrated Report 2022

MIRARTH HOLDINGS Integrated Report 2022

31

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Strategy

MIRARTH’s Foundation

Data

Strategies by Business Segment

Energy BusinessBusiness Overview

in the scope of consolidation as a subsidiary company. Taking
into account scheduled projects, including facilities underdevelopment, we have achieved our cumulative generation
capacity goal of 360 MW set under the Medium-Term Management Plan ahead of schedule. The MIRARTH HOLDINGSGroup is also promoting the development of renewableenergy sources other than solar power. The Group acquired
its first wind power
plant, Leben Wind Plant
Nagasaki Tsushima
Power Generation Facility in November 2021.

Through its energy business, the MIRARTH HOLDINGSGroup develops, operates, and sells power plants that utilize renewable energy in a bid to help reduce CO2 emissions. We acquire and develop solar power plants on idle
land and other places throughout Japan and sell them mainly to Takara Leben Infrastructure Fund, Inc. Takara Leben
serves concurrently as operator and tenant of all facilities
sold to the Fund. Leben Clean Energy Co., Ltd., whichboasts strengths in the development of small- and medium-scale solar power generation facilities, was included in
the scope of consolidation as a subsidiary in 2021. Moving
forward, we are working to build a new business model.

LS Chiba Katsuura Power
Generation Facility

Trends in Net Sales and Gross Profit(Millions of yen)

35,00034,248(Millions of yen)

10,00030,00025,00021,80019,2005,396
3,350
15,2001,300
900

20,00015,0000

FY2021

FY2022(Forecast)

Net sales (left axis)

FY2023(Forecast)

FY20248,000

Trends in the Renewable Energy Market

6,000

The Japanese government introduced a feed-in-tariff (FIT)
scheme for electricity generated from renewable powersources in 2012 to diversify the country’s means of power
generation. This has allowed a large number of businesses
to enter the renewable energy market, significantly expanding it. Furthermore, amid the global trend toward a low anddecarbonized society, the government’s Sixth Strategic
Energy Plan announced in October 2021 calls for a further
increase in the ratio of renewable energy, particularly solar
power, by fiscal 2030 to achieve carbon neutrality by 2050.
In contrast, purchase prices under the FIT scheme are on a
downward trend with the scheme scheduled to end in the
future. As a result, the need to urgently establish a business model that does not rely on the FIT scheme is emerging as an important management issue for renewableenergy operators.

4,000
2,000
0

(Forecast)Gross profit (right axis)

Review of FY2021
Revenue and earnings from both the sale of electricity as
well as power generation facilities exceeded forecasts. In
particular, revenue from the sale of operational power generation facilities, including the Company’s largest LS Chiba
Katsuura Power Generation Facility, contributed to the substantial increase in revenue, to 25,379 million yen, up 230.1%
year on year. Revenue from the sale of electricity climbed
53.0% compared with the previous fiscal year, to 8,869
million yen in line with the inclusion of Leben Clean Energy

Cumulative Generation Capacity
5% 44%

Owned by the Company   Sold   Projects under development or planned (MW)40 yen

79

231*

50

19%

36 yenFuture Initiatives
 Solar power generation development
The MIRARTH HOLDINGS Group has continued to workon FIT scheme mega solar projects. In light of the scheme
coming to an end, we will increase the development ratio ofsmall- and medium-scale solar power generation facilities
and promote collaboration with partners to establish a new
business model. In March 2022 as a part of these efforts,
Osaka Gas Co., Ltd. invested in Leben Energy No. 1 LLC,
which owns and operates small- and medium-sized solar
power generation facilities developed by Leben Clean Energy. By combining Osaka Gas’ business foundation in theelectric power business with Leben Clean Energy’s project
development capabilities, we will promote and expand theuse of renewable energy while leveraging each company’s
respective strengths.

premises of users and supply electric power through dedicated power lines. In the case of the off-site model, power
generation companies supply electric power through regular power transmission networks from power generation
facilities outside users’ premises. Through each businessmodel, we are working to expand the PPA business within
the energy segment through flexible proposals. Taking into
consideration the needs of users and their concerns surrounding such issues as costs and power generation
demand, we will, for example, promote on-site PPAs thatlower initial costs and off-site PPAs that allow for large
power generation capacity.
Direct and Bilateral Energy Trading PPA Model

On-site PPAInstallation of power generation facilities
within the premises of users
Power supplied primarily throughdedicated power lines

PPA model

Geographic Coverage of Renewable
Energy Power Plants

Off-site PPA

Supply of electric power through power
generation facilities outside users’ premises
Power supplied mainly through regularpower transmission networks

On-site PPA model

Total power
generationPowergeneration
operators

310MW(PPA operator)* Including previous
sales

 PPA initiatives
Power Purchase Agreements (PPAs) which are direct purchases by electric power users are a promising businessmodel after the FIT scheme comes to an end. PPAs are infact categorized into the two business models: on-site andoff-site PPA. Under the on-site model, power generationcompanies install power generation facilities within the

Installation, operation, and maintenance of
renewable energy generation equipment

PPA

Users

Electricity consumption fee Local microgrid concept
The term microgrid, which can be compared to a local production for local consumption framework for energy, refers
to a mechanism that is designed to build a small-scaleenergy network that brings the energy supply source andconsumption facilities together within a specified region.
The MIRARTH HOLDINGS Group has identified the harmonious coexistence of people, nature, and society as well as
co-creation with local communities as a set of new values.
Looking ahead, we will promote the PPA model and microgrid system initiative to achieve sustainable growth andcontribute to the local community.

32 yen13%
5%Medium-Term Management Plan target: 360MW

FIT pricesof our 360MW
capacity

MIRARTH HOLDINGS Integrated Report 2022

22 yen18 yen1%
10%32

24 yen21 yenFY2024* 23MW of the 231MW sold in fiscal 2021 were from previous sales by Leben Clean Energy

27 yen3%
1%

Under 14 yen

Promoting the Biomass Power Generation Business
MIRARTH entered the biomass power generation business in 2021, and commenced demonstration operations at the Fujisan Asagiri Biomass Power Plant (Fujinomiya City, Shizuoka Prefecture) with a view to initiating electricity sales in fiscal 2022. The power plant generates electricity by burning biogas generated
through the fermentation process of cow manure collected from members of the Fuji Kaitaku Agricultural
Cooperative Association, which emits less CO2 than the direct burning of wood waste and combustible
waste. In addition, plans are in place to commence sales of the liquid fertilizer produced in conjunction withthe biogas. This initiative is designed to help build a regional recycling-oriented symbiosis zone by supplying
clean energy through the effective use of waste while solving the problem of disposing of cow manure.

Fujisan Asagiri Biomass Power Plant

MIRARTH HOLDINGS Integrated Report 2022

33

Introduction

MIRARTH’s Strategy

MIRARTH’s Value Creation Story

MIRARTH’s Foundation

Data

Strategies by Business Segment

Asset Management BusinessBusiness Overview
In accordance with the change in business segments, themanagement compensation portion of the other businesssegment was separated as a stand-alone business and renamed
the asset management business. Through the Group’s asset
management company, this business is responsible forthe management of real estate investment trusts in Japan(J-REITs), infrastructure funds, and private funds.
Trends in Net Sales and Gross Profit(Millions of yen)

1,600

1,400

1,315
1,200

1,200

1,223

1,120

970

1,570
1,270

800

400

0

FY2021

Net sales

FY2022(Forecast)

FY2023(Forecast)

FY2024(Forecast)Gross profit

Review of FY2021
The earnings structure of the asset management businesshas grown in line with increases in the balance of assets
under management of the various funds managed by the
MIRARTH HOLDINGS Group and property transaction
fees. Our goal is to achieve an asset scale of 300 billion

Other Businesses

yen from each of our various funds by March 31, 2025. Asof March 31, 2022 the balances of infrastructure funds,
J-REITs, and private funds were 68.6 billion yen, 107.8 billion yen, and 33.5 billion yen, respectively, on an acquisition
price basis, for a total balance of 209.9 billion yen. We havesteadily accumulated assets under management.

Future Initiatives
Net sales in the asset management business are projected
to decrease 8.8% compared with the fiscal year underreview, to 1,200 million yen in fiscal 2022. On a year-onyear basis, gross profit is forecast to decline 20.7%, to 970
million yen, and operating income to fall 54.5%, to 270 million yen. This largely reflects the anticipated downturn insuch items as property acquisition fees paid by Takara
Leben Real Estate Investment Corporation. Moving forward, we will work to further build up asset management
fees by expanding the assets under management of Takara
Leben Real Estate
Investment Corporation,
Takara Leben Infrastructure Fund, Inc.,and private funds in abid to grow this as a
new pillar of the Group.

Business Overview
The MIRARTH HOLDINGS Group is actively engaged in awide range of business activities related to the people’s housing needs, which continue to evolve in a myriad of ways. With
the decision to reorganize its business segments, the Company separated the management compensation portion included in other businesses as the asset management business.
With the transfer of management control over such earnings
streams as sales, brokerage fees, and revenue from repair
work to the real estate business, the other business segment
is largely comprised of construction subcontracting and the
direct management of rehabilitation centers and hotels. While
Leben Home Build Co., Ltd. spearheads the construction
business, Leben Community Co., Ltd. is responsible for thenursing care business. In addition to newly establishing the
Hotel Management Division with Takara Leben to promote thehotel business, Leben Hotels Co., Ltd. is charged with the
responsibility of hotel management.
Trends in Net Sales and Gross Profit(Millions of yen)
4,000
3,000

300.0

(Billions of yen)

50.0

209.9
148.6
98.0
8.3

23.0

161.9

33.5
107.8

68.6

25%

24%

9%
42%
 Residences Offices Hotels Retail and other properties

March 31, March 31, March 31, March 31, March 31, March 31,
2017
2018
2019
2020
2021
2022

34

150.0

100.0
March 31,2025 （Target）

3,300 480

2,895
330

600

3,000
400

2,000

1,000

0

Assets under Management(Millions of yen)

4,000

450

300

150

92
FY2021

FY2022(Forecast)

Net sales (left axis)

FY2023(Forecast)

FY20240(Forecast)Gross profit (right axis)

Infrastructure funds
REITS

Review of FY2021

Private funds

Net sales in the other business segment totaled 2,895 million yen. This was due to a variety of factors including revenues from contracts for construction work, orders forlarge-scale repair work, and commission income. Despite
these results, repair and construction work fell below targets due to the impact of COVID-19.
“My Reha” Day Care Service Specializing in Rehabilitation
My Reha, is a daycare service specializing in rehabilitation,
operated by Leben Community, provides facilities rooted in

the community specifically to those certified as
requiring support ornursing care, while taking
into conditions infection
control measures. As
Japan’s society continA red cord exercise developed in Norway, aues to age and the numrehabilitation pioneer, that uses a red cordsuspended from the ceiling.
ber of people worried
about their health in their senior years grows, My Reha
focuses on what happiness means for its users. This service
uses unique programs to help extend users’ health lifespans.
Opening of HOTEL THE LEBEN OSAKAThe MIRARTH HOLDINGS Group launched the first HOTEL
THE LEBEN proprietary brand as one initiative in its hotelbusiness and opened HOTEL THE LEBEN OSAKA in
Osaka City, Osaka Prefecture, the first hotel in this series
on March 24 to commemorate its 50th anniversary in September 2022. Drawing on our expertise in providing comfortable spaces for everyone, cultivated through our home
manufacturing activities as a general real estate businessdeveloper, we are exploring how “the happiness”
should feel during a hotel
stay, while building abusiness structure that
goes beyond the provision of housing aligned
HOTEL THE LEBEN OSAKA
to changes in lifestyles.

Future Initiatives
Net sales in this segment are projected to come in at 4,000
million yen, up 38.2% compared with the fiscal year underreview. Operating income is projected to total 50 million
yen compared with the operating loss of 216 million yen in
fiscal 2021. In the future, the MIRARTH HOLDINGS Groupwill work to definitively capture earnings opportunities
derived from other segments and expand peripheral businesses while strengthening synergies across the Group.

Grand Opening of the National Park Park-PFI Project AQUAIGNIS AWAJISHIMAHOTEL THE LEBEN OSAKA Disaster Prevention Experience Mission Plan

AQUAIGNIS AWAJISHIMA, a natural hot spring resort complex opened in July 2022. Located in Awaji City,
Hyogo Prefecture, this project in which Takara Leben and Takara Asset Management Co., Ltd. participate
forms part of the MIRARTH HOLDINGS Group’s goal of contributing to regional revitalization nationwide.
AQUAIGNIS AWAJISHIMA is the first nationally certified national park (Park-PFI) project, a method of development and management that utilizes the funds of private businesses through public offerings. Taking into
consideration Takara Asset Management’s role in managing the project funds, the Group’s participation
extends beyond the real estate business to include asset management. Through this initiative, we aim tofurther expand our financial business, and in cooperation with other industries, we will help to secure
regional revitalization and increase the value of each region as a new business scheme.

The MIRARTH HOLDINGS Group has developed the Disaster Prevention Experience Mission Plan as an opportunity for families to learn about disaster prevention. This plan provides participants with the simulated experience of a disaster by having them spend a day in an inconvenient guest room with no lighting, use disasterprevention goods, and eat preserved food. Using a booklet entitled “Disaster Prevention Mission 7: Let’s Make
Disaster Prevention Rules for Our Home” provided in the room, participants carry out seven missions, including
deciding on an evacuation site to meet and thinking about disaster prevention goods for the family, and complete their own disaster prevention rule book, which they can then take home and utilize. Looking ahead, weplan to actively contribute to local disaster prevention and disaster education for children by distributing thebooklet and inviting students to participate in the plan at public institutions and schools in the neighborhood.

MIRARTH HOLDINGS Integrated Report 2022

AQUAIGNIS AWAJISHIMAHOTEL THE LEBEN OSAKA Disaster
Prevention Experience Mission Plan goods

MIRARTH HOLDINGS Integrated Report 2022

35

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Strategy

MIRARTH’s Foundation

Data

Sustainability in the MIRARTH HOLDINGS Group
Sustainability Basic Policy

Received High Evaluation from GRESB*

The MIRARTH HOLDINGS Group holds as its purpose:

For the third consecutive year, MIRARTH HOLDINGS partici-

Corporation received a “Green Star” rating in the 2021

pated in the 2021 GRESB Infrastructure Asset Evaluation. It

GRESB Real Estate Assessment for the third consecutive

received an overall score higher than last year’s as a result ofyear, which indicates that the company received high markssocial issues and achieving the SDGs by engaging in sus-

particularly high recognition of the solar power generation

for both management and performance with respect to envi-

tainability activities through our business, such as thefacilities owned by Takara Leben Infrastructure Fund and ourronmental, social, and governance (ESG) considerations.

Customers“To design sustainable environments for a happier future forsupply of housing and the introduction of natural energy,

Shareholders andinvestors

Competitors

both people and our planet.” and contribute to solving

Local communities,
NPOs, and NGOsMedia

in order to gain the trust of different stakeholders and soci-various ESG-related policies and target setting, as well as disclosure of our ESG initiatives. We also received a “4-star” rat-

ety and achieve lasting development.

Executives andemployees

Governments

ing in the “GRESB Rating,” which is a five-level rating based* The name of an annual benchmark assessment to measure the ESG considerations ofcompanies and funds that own and manage real assets (real estate and infrastructure) andthe organization that administers the assessment, created in 2009 by a group of major
European pension funds that spearheaded the Principles for Responsible Investment (PRI).

on global relative rankings, surpassing last year’s rating.

Trading
partners

Furthermore, Takara Leben Infrastructure Fund participated in the GRESB Infrastructure Fund Evaluation for the

Sustainability Promotion Systemthird consecutive year and was awarded the highest“5-Star” rating in the “GRESB Rating” as well as being

The Group has established a sustainability promotion sys-

selected as an “Asia Sector Leader.”Board of Directors

tem based on the recognition that “addressing issues sur-

Reportrounding sustainability, including consideration of climate

Sustainability Committeechange and other global environmental issues, respect forhuman rights, consideration of employee health and theworking environment and fair and appropriate treatment of
employees, fair and appropriate transactions with business
partners, and risk management in the event of natural
disasters are important management issues.”
The Sustainability Committee, chaired by the Representative Director and composed of directors, presidents anddivision heads of group companies, is responsible forpromoting ESG strategies, determining policies andIn addition, Takara Leben Real Estate Investment

Matters related to the revision or abolition of sustainability-related policies and material issues (materiality)
Determination and promotion of measures, review of progress, and deliberation of improvement plans
Chair: Representative Director and President (Chief Executive Officer)
Vice Chair: Director in charge of Sustainability (Executive Officer)
Permanent members: Directors
Other presidents and department heads of the company and Group companies appointed by the chairperson

Secretariat

Group Corporate Planning Department

Sustainability Promotion Section,
Group Corporate Planning
Department

Coordination andimplementation

Direction formulation, policy
formulation, policy implementation
and awareness-raising, promotion
management

Communication

Information disclosure

Each department andGroup company

Customers

Local communities

STEP

3

STEP

4

STEP

5

36

We identified 31 issues relating to the business environment based on GRI, SDGs, SASB,
and other international guidelines, as well as our Group philosophy and Medium-Term
Management Plan and requests from our customers, shareholders and investors, local
communities, employees, and other stakeholders.

Evaluate the significance from the MIRARTH HOLDINGS Group’s
perspective
We set priorities by sorting out the results of questionnaires completed by all employees,
including the management and officers, and each issue’s relation with our business andGroup philosophy.

Evaluate the importance of our stakeholders’ perspectives

Business partners

Employees

Shareholders andinvestors

Identify key issues
The key issues were identified after the priorities were reconsidered from the perspectives ofthe MIRARTH HOLDINGS Group and our stakeholders, and reviewed by the management.

MIRARTH HOLDINGS Integrated Report 2022

Relationships with Stakeholders
Main Stakeholders

Expectations and Requests

Major Responses of the Group

Customers (corporations and individuals)• Supply of valuable products and services• Improvement of customer satisfaction in all areas,
including quality and cost
• Supply of environmentally friendly products• Provision of accurate and appropriate information concerning products and services• Introduction of online consultation system• Introduction of online condominium show room system• Provision of “clean air and spaces”• Provision of properties with ZEH-M Oriented
certification• Administration of sales staff questionnaire• Publication of “Smilax” quarterly• Prevention of accidents and disasters• Collaboration and coordination in solving social issues• Securing of employment• Participation in social contribution activities• Participation in and sponsorship of local events• Holding of community events at managed properties• Implementation of social contribution activities• Regional revitalization through rebuilding and redevelopment business• Fair and evenhanded transactions• Information sharing and collaboration with the aim of
ensuring customer satisfaction and CSR procurement• Fair and evenhanded transactions• Collaboration and coordination in operations• Creation of prosperous lives for employees and theirfamilies• Human resource utilization and development• Appropriate evaluation and compensation• Respect for human rights, personality, and individuality• Creation of workplaces in which diverse personnel can
thrive• Attention to occupational health and safety• Implementation of training programs• Implementation of human resource and evaluationinterviews• Operation of help line desks• Introduction of a Telework System• Promotion of staggered commuting times and reduced
working hours• Establishment of a Health Committee• Maintenance and improvement of corporate value• Securing of stable profits and appropriate return ofprofits• Enhancement of corporate governance system• Creation of risk management systems• Appropriate disclosure of corporate information at
appropriate time

• Holding financial results briefings and general meetingsof shareholders• Conducting individual meetings with domestic andoverseas institutional investors• Conducting shareholder surveys• Holding company-introductory sessions and participating in IR fairs• Disclosing IR information on the website• Obtaining external certification



P.42

• Contracting parties and tenants of condominiums
and detached houses• Users of tenant buildings• Users and others of various services

Local communities

P.42

Definition• Local communities, residents, local governments,
etc. related to MIRARTH HOLDINGS Group businessTrading partners
DefinitionHigh• Construction contractors• Business operators and others related to theprovision of various services

Employees

P.38

Definition• MIRARTH HOLDINGS employees and their families

We set priorities by sorting out the results of questionnaires completed by customers,
shareholders and investors, and business partners and the requirements based oninternational guidelines such as the GRI and the SDGs.

Policies were set for the four key themes.

the Ten Principles of the UN Global Compact in four areas:* The United Nations Global Compact was proposed by then
UN Secretary-General Kofi Annan in 1999 at the World
Economic Forum in Davos and was launched in 2000.

Communication

Grasp and organize social issues

Policy setting for key themesanti-corruption.

Definition

Priorities for stakeholders

2

Global Compact promoted by the UN and registered as a

Stakeholders

The Group has identified key themes and key issues (see page12) through the following steps.

STEP

human rights, labor, environment, andPolicy implementation,awareness-raising, progress
management

Key Themes and Key Issues Identification Process1

In 2020, MIRARTH HOLDINGS signed the United Nations
participating company. We will continue our efforts to achieve

improvement plans.

STEP

MIRARTH HOLDINGS Signs UN Global Compact*

Members

measures concerning sustainability, examining and promoting key issues, reviewing progress, and deliberating on

Supervision

Shareholders and investors
Definition

High
Priorities for the MIRARTH HOLDINGS Group• Individual and institutional investors

MIRARTH HOLDINGS Integrated Report 2022

37

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Foundation

MIRARTH’s Strategy

Data

Together with Employees
The MIRARTH HOLDINGS Group promotes “personnel development and the establishment of a rewarding
workplace environment,” which is one of seven elements of the Medium-Term Management Plan. We believe

Educational Systemthat securing and developing excellent human resources is essential for the Group’s sustainable growth, andBasic policy on education and training

we are therefore striving to enhance our corporate culture and human resources system to enable a diverse

The MIRARTH HOLDINGS Group works to reinforce its educational and training programs by formatting thearray of employees to play an active role.

Basic Policy on Education and Training with the aims of promoting the growth of each employee and enhancing overall organizational strength.

Key Issues• Percentage of employees receiving healthcheckups: 100%
• Stress check examination rate: 100%

• In addition to development based on our corporate vision, nurture human resources who can express pride to
stakeholders as members of society.

• Percentage of female managers: 9.5% (FY2024)• Percentage of employees returning to work
after maternity or parental leave: 100%

• Implement programs that enable each employee to feel a sense of personal growth and design over their career.

• Percentage of employees taking paid leave: 70% • Training hours per employee: 24 hours• Percentage of employees with disabilities: 2.3%

• Enhance the organization and work management skills necessary for each job rank, including leadership and developmental capabilities and organizational management capabilities, linked with the personnel evaluation systems.

• Satisfaction rate of sales staff survey: 90%• Support the acquisition of specialized knowledge and the other business skills necessary for the execution ofbusiness.

Please click the link below for more details.

https://mirarth.co.jp/en/sustainability/social/employee/

Training system• Management strategy formulationand decision-making• Corporate management

Company

M3• Strategy implementation and management in one’s organization• Achieving group targets• Effective organizational operation• Department manager development

M2• Strategy implementation and management in one’s organization• Achieving department targets• Effective organizational operation• Section manager development

12 Actions for Our Promise

M1• Strategy implementation and management in one’s organization• Achieving section targets• Effective organizational operation• Developing subordinates

Since 2019, the Group has been promoting a new humanresource system that will create the consistent human

1. Fully engage in work

7. P
 ay attention to feelings

resources needed to achieve our business plan in accor-

2. E
 njoy work from the heart

8. A
 ct swiftly

G3• Directing and guiding subordinates• Central roles in business execution,
improvement, and problem-solving

3. Speak
truthfully fromthe heart

9. T ake initiative to propose,and carry through actions

4. B
 e serious in each andevery task

10. T
 reat teamwork with
importance

5. R espect each other11. Remove existing barriers

6. P ursue the right things

12. Never give up

dance with the Basic Policy for Personnel System.

G2• Performing one’s work duties under
the general direction of supervisors• Business execution, improvement,
and problem-solving

Under this system, evaluation items are set for each grade• Logical thinking abilities•F ollowershipand job classification based on a “Promise”: specific daily
actions that employees should take. Additionally, to realize

G1• Performing one’s work duties under
the detailed direction of supervisors• Acquiring business experience andknowledge• Business stances• Business etiquette• Fundamental practicalskills• Listening ability• Identifying problems• Setting and managing
targets

appropriate, fair and transparent evaluation, and treatment,Team• Organizational management• Fundamental management skills• Leadership

Individual• Company operations• Management strategies • Business development

Organization

Selective

Others• Problem-solving

e-learning

Officers• Management strategies

WorkplaceReal estate notary qualification acquisition support

Objectives and effects of personnel system revision

Rank-based

Improving organizations

Scope

Evaluation

Definition• Conduct training and selection to generate talented people for management positions• Carry out evaluation and treatment that are highly fair and transparent to nurture employees’ sense of acceptance and increase their desire to growCompany-wide
education

Grade

Improving operations• Review distribution of labor costs to secure and keep talented people as well as improve motivation

Training Structure Chart

Feedback interview on evaluation of results and conduct• Clearly state the type of people required by the company to build a framework where employees can set out
their career visions

policy.

Practical knowledge training

Personnel system which consistently nurtures talent required to achieve management plan

selected personnel in accordance with the aforementioned

and skills that they need, including rank-based training

360-degree evaluation

employee is a co-creator of lasting growth for the future.

enable employees to acquire and enhance the knowledge

On-the-job training

The MIRARTH HOLDINGS Group has formulated a Basic Policy for Personnel System with the belief that eachsuch as training for all new employees and training for

Evaluator training

Basic Policy for personnel system

In fiscal 2021, we systematically implemented programs toCompliance and Harassment

Personnel System

Vision, Mission and Promise• Employee healthmanagement• Encouraging employment of diverse humanresources

KPIs

revisions have been made to the behavioral evaluation, suchVOICE

as aligning evaluation criteria by the evaluation committee.
Through these efforts, we aim to provide more convincing
feedback to employees and improve evaluation skills by promoting understanding of the significance of the evaluation

Attractive treatment for
talented people

Expansion of business

Improvement to retention
rate of talented people• Productivity improvement• Creation of new businesses• Passing down knowledge• Development of unity within
the company

system and evaluation criteria among managers. Going forward, we will continue to improve our personnel system andimprove the retention rate of talented human resources
through attractive compensation, thereby expanding our business and ultimately increasing our corporate value. We will
also consider formulating a new personnel system in conjunc-

Anticipate more dynamic initiatives to help employees form career plans

Takara Leben Co., Ltd.
Osaka branch office, Development Department

Yukihiro Kawakami

I attended training for each year and position, including follow-up training for new graduates during their first three years and training by job
level. During the training for selected section managers, serious discussions were held with people in other departments with the same positions as myself. The discussions were about the current state of the Company and areas for improvement, instilling the realization that the
motivation and values of each employee create the culture of the Company. This stimulating training has inspired me to take action on myown. The Company conducts a variety of training programs, but I feel that it would be good to have more practical training that is not onlyclassroom-based but also cross-departmental. At the moment, I am exclusively engaged in purchasing land for condominiums for sale, but I
would like to become an employee who can see and think from multiple perspectives by gaining experience in a variety of jobs, rather thanfocusing on one job. I believe that I am already in an environment filled with various opportunities such as transfers. However, I hope that theCompany will work harder to support the formation of career plans for its employees.

tion with the transition to a holding company organization.

38

MIRARTH HOLDINGS Integrated Report 2022

MIRARTH HOLDINGS Integrated Report 2022

39

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Strategy

MIRARTH’s Foundation

Data

Together with Employees

Entry-level employee training
All new employees undergo periodic training for three years
after joining the Company to foster awareness as members ofsociety, members of an organization, and employees, as wellas to increase self-awareness of their own work duties andresponsibilities within the Company and to acquire the skills
required to produce results as professionals. In accordancewith the New Employee Three-Year Educational Program,new employees undergo training in their first, second, andthird years to clarify their roles, targets, objectives, in addition
to fostering employees who can exercise initiative.

Support for acquisition of real estate notary
qualifications
The MIRARTH HOLDINGS Group encourages employees
to obtain registered real estate transaction agent qualifications (“Takken”) by making the submission of an education-

al plan mandatory, purchasing educational materials, andconducting practice tests.

Job rotation
We are revitalizing our job rotation system, in which
employees regularly change workplaces and duties. By
having young employees experience job moves acrossdivision and department lines, we are promoting greater
understanding of the overall Company’s management policies and strategies, the pursuit of employees’ full potential,
and adaptability to different working environments. We arealso supporting cross-departmental reassignments whenrequested by mid-level employees. This not only further
supports their individual spirit of challenge, but also helps
cultivate generalists with broad-ranging knowledge andskills, deepening bonds between departments and enhancing the strength of the organization as a whole.

Promoting Diversity
The MIRARTH HOLDINGS Group acts with respect for the fundamental human rights of all stakeholders, including employees, while observing laws and regulations, social ethical norms, and matters specified in ethical rules.

As part of our efforts to develop human resources and create a rewarding work environment, MIRARTH HOLDINGS
has launched the “Women’s Activity Promotion Project.”
The project is based on the feedback of female employees
working for the Group and aims to create an environment
in which they can continue working longer than ever withpeace of mind after returning from maternity or childcare
leave.
In fiscal 2022, we introduced a “discount system forbabysitters” to support a work environment where employees can continue to work with peace of mind while balancing work and childcare. Looking ahead, we will develop
systems that enable employees to work with peace of mind
while balancing work and family life, while pursuing initia-

tives to enable each employee to implement independent
work styles.

Promoting employment of persons
with a disability
We take measures to promote diversity with the aim of
becoming a business group where diverse human resources
can thrive regardless of gender, age, nationality, or disability.
Leben Village, a farm located in Chiba City, Chiba Prefecture, employs three persons with a disability and one manager and produces a variety of vegetables that are distributed
to employees who request them. The name Leben Village
reflects our desire to form one community like an idyllicvillage to enhance cohesion. Going forward, we will work
to create a rewarding and secure long-term environment
for people with disabilities.

VOICE
Need to enhance systems that support diverse work styles and foster a
corporate culture that facilitates their use

Takara Leben Co., Ltd.
Public Relations Department

Satoko Wada

I am in charge of external advertising such as press releases and magazine ads, as well as internal advertising like PR newsletters. After returning
to work after childcare leave, I have been working shorter hours and teleworking, and I am assigned mainly to tasks that can be handled fromhome so that I can nurse my child or work even when daycare is closed. However, when daycare closures meant keeping my child at home, I had
to work while looking after my child. Doing this every day was exhausting both physically and mentally, making it difficult to balance work and family life. While assessing my own capacity and effectively using available systems, I would like to actively engage in internal and external public relations activities while looking for situations where I can make use of my strong creative skills. In the future, I will communicate my experiences andthoughts through personnel interviews and career path sheets to further enhance systems that support diverse work styles such as time off andsuper-flex time, as well as to foster a corporate culture that makes it easier for employees to use these various systems.

40

MIRARTH HOLDINGS Integrated Report 2022

The MIRARTH HOLDINGS Group strives to create work-

Efforts to reduce working hours

places where employees can thrive and reach their full

The Company promotes a “time-conscious and efficient

potential.

work style” with the aim of improving employee health. We
are promoting the creation of workplaces where employees

Introduction of a telework system

do not work long hours mainly by ensuring that overtime is

In April 2019, the MIRARTH HOLDINGS Group introduced

in principle limited to 45 hours per month and 60 hours six

a telework system. Employees who meet specific condi-

times a year. We are considering reflecting this in personnel

tions, such as those related to the content of their work, or

evaluations by visualizing the actual work conditions. In

employees who have given birth, are parenting, or who

addition, we have introduced a system to reduce overtime

provide nursing care, can work remotely up to three times

hours that involves shutting down PCs if employees con-a week, without coming to the office. We plan to further

tinue to use them without submitting overtime work

promote this telework system with the aim of creating

requests to management. On the other hand, it is expect-

workplaces that enable flexible work styles not fixated on

ed that managers will be able to visualize the details of

specific locations or times and contributing to our businesstheir subordinates’ overtime work, thereby increasing theircontinuity plan (BCP).

awareness of the need to manage the organization in awell-balanced manner.

Respect for human rights

Promoting women empowerment
in the workforce

Creation of Comfortable Workplace Environments

Enhancement of Communications with Employees
MIRARTH HOLDINGS Group conducts personnel inter-

we operate an intra-Group website Takara Note to promote

views with all employees in order to improve labor andbetter understanding of the Group and invigorate commu-

workplace environment that encourages employees tonication by sharing

remain with the Company over the long run. The aims are

information and distrib-

to gather information on how to reduce overtime work,

uting video messages

investigate improvement measures by gaining an under-from management thatstanding of employee career plans, and build relationships

maximize Group

that encourage employees to discuss issues. In addition,synergy.

Takara Note

Employee Health & Safety Management
In accordance with the Basic Policy on Health and Safety,

Working to eliminate accidents

the MIRARTH HOLDINGS Group pursues measures to cre-

The Group strives to eliminate labor accidents at workplaces

ate work environments where all employees can work withand construction sites. In addition to daily inspections, Leben

peace of mind by managing employee health and safety.

Home Build—which mainly engages in condominium construction—is working to achieve safer construction sites byHealth Committee

conducting health and safety patrols at least once a month.

The Health Committee meets regularly, positioning traffic

Moreover, top management also conducts joint special

accidents, occupational accidents, and overtime work as

patrols with partners once a quarter. In July 2021, in con-major risks that threaten the health and safety of workplace

junction with National Safety Week,* we visited four actual

employees. It reports on the conditions of these risks andconstruction sites with representatives from eight partner

engages in deliberations with the objective of resolving

companies to check working conditions from the perspec-these issues. Committee members point out specific prob-

tives of daily management, on-site maintenance, accident

lems with workplace environments and customs thatprevention, fall prevention, and machine accident preven-

impede efforts to reduce overtime hours and encouragetion and to encourage the implementation of measures.

the taking of holidays. Measures to address these problems are deliberated together with members of management and successively implemented.

* National Safety Week
An initiative of the Ministry of Health, Labor, and Welfare and the Japan Industrial Safety
and Health Association to promote voluntary industrial accident prevention activities,
raise safety awareness, and establish safety activities in the industrial sector.

MIRARTH HOLDINGS Integrated Report 2022

41

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Foundation

MIRARTH’s Strategy

Data

Together with Customers and Local Communities
The MIRARTH HOLDINGS Group aims to be a “future environment design company that makes the future ofService Quality Management System (SQMS®)

people and the Earth happier,” and therefore actively engages in business that considers the “happiness” of

Variation in the quality of services provided by different people has become a problem for condominium management
operations, especially when this variation results from providing services dependent on individual capabilities. Leben
Community therefore promotes our proprietary Service Quality Management System (SQMS®), which applies ISO 9001,
an international standard for quality management systems,
to condominium management, and promotes quality man-people and lifestyles in order to create “happiness” for communities and society. By offering new value that
addresses today’s diversifying lifestyles, we contribute to the solutions for society’s challenges.

Key Issues• Support for diversifying lifestyles and globalization•U rban development and creating towns•R esponses to changes to business models brought by anageing society and depopulation•P roviding safe, secure products and services

KPIs• Supply of NEBEL series condominiums 3• Redevelopment projects•Community sponsorships
undertaken 2
10• Number of nonconformities•Training of SQMS® masters
related to business processes•Acquisition rate of housing
and quality standards 10 or lessperformance evaluation
certificates 100%
• Implementation of preventive
action sharing meetings

agement systems that stabilize the quality of our services.
SQMS® provides condominium management as a set of four
support services (site management, financial management,
asset management, and operations management), andapplies a PDCA cycle to each to continuously improve quality. Specifically, the system provides feedback to the relevant
departments on the opinions of condominium management
association members, collected through questionnaires,
which leads to improvements in the quality of services.

SQMS® Process Chart (Service Quality Management)
Management and planning design based on customer needs
Management outsourcing agreements

Please click the links below for more details.
Customerhttps://mirarth.co.jp/en/sustainability/social/customer/

Plan

Local Communities

https://mirarth.co.jp/en/sustainability/social/society/Do

Quality plan proposal

Service quality plan design (quality plan) based on the management plan

Initiatives for Safety and Peace of MindAct

The MIRARTH HOLDINGS Group engages in various initiatives that ensure the earthquake and fire resistance

SQMS® Cycle
Improvement activities

Continuous improvement

Corrective action

Service provision activities

Provision of services in accordance with quality standards(product realization)
Condominium management outsourcing services

Quality standards

Check

Collection, analysis & evaluation activities

Preventive action

Collection

Analysis

Evaluationof our buildings, conduct disaster preparedness drills, and improve the quality of our management services, inorder to deliver lifestyles that offer safety and peace of mind to our residents.

Thorough process inspections
The MIRARTH HOLDINGS Group conducts stringent checks
at the construction stage to provide housing where people
can live for a long time with peace of mind. We put great effort
into ensuring thorough quality management, with our staff
regularly visiting construction
sites to inspect building structures and conduct checks
within the construction process of hidden areas, foundations, and finishing.
Process inspection (Image)

Earthquake- and fire-resistant structures
The Group adopts the most appropriate construction
method for the characteristics of the subsoil and its capacity to support the foundation in an effort to improve theearthquake resistance of our buildings and to enable ourcustomers to live safely and with peace of mind. In theconstruction of condominiums, we employ pile foundations, where strong piles are directly driven into the groundto the supporting layer, spread footing foundations, which
provide support directly using firm subsoil, and seismic isolators, which disperse earthquake energy and dampen
extreme, long-period building swaying. In the constructionof detached housing, we employ a mat foundation method
as a standard feature, whereby a steel-reinforced concreteslab is laid underneath the entire wood floor to support thebuilding, establishing a strong foundation.
Moreover, the thickness of the concrete walls between

42

MIRARTH HOLDINGS Integrated Report 2022

Quality-related education and training

our condominium units, which require a high level of fire
resistance and soundproofing, is approximately 180 mm,
while fire-resistant and soundproofing construction is used
for the piping within pipe spaces facing residents’ rooms.

Leben Community works to develop human resources who
understand and practice SQMS®. We conduct training on
the core concepts of SQMS® for young employees. Leben
Community also certifies SQMS® Master employees who

have extensive practical experience and are well versed in
SQMS® concepts, quality standards, process management, and grants them SQMS® badges. The SQMS® Master program was launched in fiscal 2018, and 13
employees have been certified to date.

VOICE

Disaster prevention
It is not easy for residents to properly use condominium
firefighting equipment in the event of a fire or to rapidly
evacuate the condominium via its evacuation routes. Leben
Community therefore conducts disaster preparation drills in
conjunction with management associations, especially inlarge condominiums. These drills support residents byensuring they can respond properly in the event of an
emergency. This includes allowing them to experienceevacuation from upper-level floors via stairs, evacuation via
ladder trucks, evacuation by breaking partition boards on
balconies, and initial firefighting using fire extinguishers. In
fiscal 2021, we made proposals that aligned with the wishes of the management associations, such as allowing forthe associations to attend inspections in a way that avoided the three conditions that facilitate the transmission of
infectious diseases (closed spaces, crowds, and close
contact) during the COVID-19 pandemic. We will continue
our efforts to strengthen thecommunity’s disaster preparation through disaster drills
suited to the actual conditions of each condominium.
View of a disaster preparation drill

Striving to further improve the quality of our management
services via SQMS® and to raise the visibility for our services

Leben Community Co., Ltd.
Consignment Promotion Sales Division Shuichi Takeda
SQMS Quality Management Office

Masahiko Kuramochi

Leben Community’s SQMS®-based management services are highly regarded for the reassurance they provide through an unwavering levelof service regardless of the individual providing them. We apply PDCA cycles to make ongoing service improvements, and conduct questionnaires of each management association chairperson, as well as conduct customer questionnaires distributed several times a year through aquarterly magazine. As an example of a past improvement, we built a telephone contact record system based on feedback regarding telephone service quality. When a phone call is received, the call record is notified to the person in charge and the supervisor via the system sothat they can verify whether our service quality has been maintained.
Today, management companies are often evaluated based on the number of units under management, and are rarely evaluated based on
their quality of service. Even so, we will continue striving to make further improvements to the quality of our management services via
SQMS®, and to enhance the visibility for our services.

Proposals Aligned with Diversifying Lifestyle Needs
Urban-type compact condominiums “NEBEL”
As a result of increases in working-couples and single-personhouseholds, residential demand is changing, and need is
growing for properties that place greater emphasis on location in a city center or near a station and on conveniencerather than size. MIRARTH HOLDINGS Group develops the
NEBEL series of compact urban condominiums for single-person and DINK households. Along with offering thedesign characteristics, specifications, and quality of facilities
found in family condominiums, this series primarily offers

one- and two-bedroom units with a
combined living room, kitchen, anddining room in Tokyo, Saitama, Osaka,
and other areas of Japan. We will continue to support enriching, fulfilling lifestyles for our customers by supplying
properties that align with their changing lifestyles.
NEBEL OSAKAUEHONMACHIMIRARTH HOLDINGS Integrated Report 2022

43

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Strategy

MIRARTH’s Foundation

Data

Together with Customers and Local Communities

Pursuit of Habitability

Regional Creation Initiatives

As people’s awareness concerning their health and the prevention of infections rises and calls are made for

While maintaining a view to social issues involved in residences and town planning, MIRARTH HOLDINGS Groupcleaner, more comfortable residences, we have engaged in various initiatives to pursue habitability and to pro-is actively engaged in regional and community revitalization projects centered on high-quality, safe condominiums.

vide safety and peace of mind. We also work to offer designs that improve the convenience of condominium
common areas for residents.

Condominiums that provide clean air and spaces
The new built-for-sale condominiums offered by the Group
come standard equipped with nanoe Generators, which
release deodorizing ionic particles that break down thesources of odors in order to control household odors that
may bother residents. Moreover, the walls and ceilings of allunits are made from materials with antivirus coatings thatprovide them with virus-reducing effects, while doors andother fixtures are also provided with antibacterial and antivirus specifications that have received Society of International sustaining growth for Antimicrobial Articles (SIAA)
certification. Similarly, floors that curtail the growth of bacteria using decorative flooring sheets that have been certified by SIAA are used. As condominiums offering “clean airand space,” we supplied “LEBEN KITATODA ATOMOS,”“LEBEN KITATODA LUMINOUS,” and “LEBEN KITATODASOLID” in the Kita Toda Station area of Saitama Prefecture.
We will continue to address the diversifying needs of ourcustomers by offering residences that align with new living
environment needs.
Takara Leben’s Consideration for Future Housing

Antibacterial and antivirus fixtures
Antibacterial and antivirus fixture
sheets are used on doors and otherroom fixtures that are touched
many times every day, supporting
the health of families.

Antivirus products are selected for wallpaper. These
products demonstrate excellent defects against viruses,
protecting peace of mind in clean residences.

Outstanding
antibacterial
properties maintaincleanlinessSociety of International sustaining growth for
SIAA The
Antimicrobial Articles (SIAA) is an organization of
manufacturers of antibacterial and anti-mold agents and antibacterial
and anti-mold processed products and antimicrobial testing
institutions; it encourages the proper and reassuring use ofantibacterial and anti-mold processed products. Such processing
reduces the number of certain virus particles on products.* Antivirus
processing is not intended to treat or prevent any disease.

Lining paper

Antibacterial flooring sheets
Decorative sheets with antibacterial
specifications are used for residence
floors, providing peace of mind tofamilies with babies.

A coating on thewallpaper surface
inactivates viruses
Virus

Antivirus coating layer

SIAA certified. Olefin decorative sheets with antibacterial
and antivirus specifications are used for fixtures.

Antibacterial and antivirus wallpaper in all units

Vinyl chloride resin layer

Antibacterial and antivirus specifications for peaceof mindContact with wallpaper surface
Modification of proteins in thevirus surface layer

Inactivation*Compliant with SIAA safety standards.

Air-e nanoe generators embedded in ceilings
The standard for the new normal. Residences that focus on airand health.

LUIC project, a proprietary water system
The LUIC Project uses a water system designed by theGroup to make purified water available for use in all
aspects of living. Since the system was launched in 2008,
it has been used in all series of our own branded condominiums. This system consists of Takara No Mizu, which

44

MIRARTH HOLDINGS Integrated Report 2022

provides purified water from taps; Takara No Mirabath
Vision, a bath system that provides the cleaning and warming effects of ultra-fine air bubbles simply by soaking in thebathtub; and Takara No Mirable Shower, which provides
water with ultrafine bubbles to keep users’ skin and hair in
excellent condition. Moreover, a new Micro Iony functionthat removes grime from the bathtub using activated oxygen atoms has been added. We will continue aiming tocreate new value through water as the foundation of life.
Purification filter section

Ceramic filter section

TL-500(Cross-sectional view)“Takara No Mizu” Water System

Installing common areas under the concept
of inter-generational exchange at “LEBENKEMIGAWAHAMA GRANVARDI”
A major theme in large-scale condominium development isthe design of common areas. “LEBEN KEMIGAWAHAMAGRANVARDI” offers 10 different types of common spaces
for all ages to enjoy, including sports gyms, kids’ rooms,
laundry rooms, and party rooms. These common areas
were also planned with the ability to be redesigned so thatthey could be remade to address future changes in theneeds of the residents. We also offer an app that allows
residents to leave messages for each other, make reservations to use common
facilities, and to contact
others in the event of adisaster, thereby enhancing the condominium
from both a tangible andintangible approach toestablish a vibrant community. In recognition of these
initiatives, the condominium“LEBEN KEMIGAWAHAMA
received the GOOD DESIGN GRANVARDI”received the GOOD
DESIGN AWARD in fiscal 2021
AWARD in fiscal 2021.

“LEBEN CRAFT” project
The Group is advancing the “LEBEN CRAFT” project forthe purpose of revitalizing communities. In addition toadministering an exclusive website for resident’s thatenables those living in urban condominiums to purchasespecialty products from regions where the Group has
developed condominiums, we also hold “Premium Markets” that allow residents to purchase specialty foods fromdifferent regions. We have promoted this project in a waythat reflects our desire to share rich experiences with as
many people as we can through the treasures (both products and experiences) that we have discovered through ourcondominium development activities across the country.

center. The Group has been recognized for this initiative,
and as the executor of the “Excellent Building Development
Project* of East Area in Front of Takaoka Station,” theGroup is currently advancing projects targeting town planning intended to create a lively atmosphere through theprovision of “LEBEN TAKAOKA EKIMAE THE TOWER.”* Excellent Building Development Project:
A program of the Ministry of Land, Infrastructure, Transport, and Tourism to
improve the environment of urban areasand supply good urban housing, etc.
with the aim of developing quality buildings, etc. that contribute to the joint use
and upgrading of land use, etc.
Conceptual image for the completed“LEBEN TAKAOKA EKIMAE THE TOWER”“LEBEN CRAFT” project

Initiatives for creating a lively town in Takaoka City

Provides select seasonal and limited-quantity
specialty foods that are
not sold insupermarkets.

In October 2021, we participated in the “Market Street
2021,” an event to promote crafts and the charm of Takaoka, and in January 2022 we officially participated in the“Japan Sea Takaoka Nabe Festival” for the first time, selling
the Yamagata specialty, imoni (stewed potatoes), at the
LEBEN TAKAOKA MID RISE TOWER, which was a great
success. We also held the “Model Nokomono” event, inwhich miscellaneous items displayed in Takara Lebenmodel rooms, were sold at special prices. Through thereuse of the exhibited items, we aimed to support sustainable living and contribute to one of the SDGs, “Ensure sustainable patterns of consumption and production.” We willcontinue to actively participate in local events in Takaoka to create a lively town
and further contribute to thecommunity.

Supports the creation ofenriching lifestyles by
sharing information on
production regions, proSpecialty
Information ducers, and products
Foods
located in various areas
around Japan.
LEBEN CRAFT

Offers residents theopportunity to actually
Experience
go and meet producers
they have becomeacquainted withthrough markets, and to
experience harvesting.

Activities
Markets

Organizes LEBEN
CRAFT Premium Markets with specialty
products gathered fromdifferent regions ofJapan.

Redevelopment projects around Takaoka Station
Takaoka City, the second largest city in Toyama Prefecture,is engaged in redevelopment projects around Takaoka Station with the aim of creating a vibrant and bustling city. In
2015, the Group developed the “LEBEN TAKAOKA MID
RISE TOWER,” a high-rise residence that will become a
new symbol of the city and bring people back to live in theInterior goods used in model rooms
were on sale

VOICE
Exploring the roles of the Group in regional creation throughparticipation in town revitalization events

Takara Leben, Co., Ltd.
Redevelopment Department Takuya Shimono

As part of the “Excellent Building Development Project of East Area in Front of Takaoka Station,” we aim to create a new face for the station
front area and revitalize the city center. As part of this effort, we plan to complete construction of the “LEBEN TAKAOKA EKIMAE THE
TOWER,” which consists of a commercial zone on the first floor and a total of 88 housing units on the upper floors, around the end of October 2023. Redevelopment is simply one approach to improving communities, however, and community revitalization requires both tangible
improvements as well as intangible solutions such as mechanisms to create a lively atmosphere. Moreover, community revitalization requires
the creation of a vision that goes beyond the project area to encompass the entire city center, as well as efforts to share this vision with as
many of those involved in the city as possible. By actively supporting locally held “town revitalization events” and having our employees
directly participate in these events so that they can experience the challenges of the city first-hand, we explore and validate our future roles in
Takaoka and other regional cities beyond. We have received words of both surprise and gratitude from those in the local community that aTokyo-based condominium and subdivision developer would sell stewed potatoes and interior goods used in model rooms at these events.

MIRARTH HOLDINGS Integrated Report 2022

45

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Foundation

MIRARTH’s Strategy

Data

Environment
The MIRARTH HOLDINGS Group is committed to “implementing various schemes to achieve carbon neutrality

Indicators and goals

within the Group” as part of its “proactive ESG considerations,” which is one of the 7 Elements of its Medium-We establish indicators and goals for managing climaterelated risks and opportunities that are consistent with ouroperational strategy and overall risk management. The
Company agrees with the TCFD recommendations anddisclose climate-related information in line with the requirements of the guidelines.

Term Management Plan. By actively promoting environmental initiatives, we contribute to the realization ofa sustainable society in which people, nature, and society coexist.

Key Issues• Providing buildings andspaces that consider theenvironment and culture• Responses to global
warming• Initiatives for renewableenergy• Effective use of resources

KPIs• Establishment of environmental
policy• Acquisition of ZEH condominium
certification: 1• Acquisition and disclosure of CO2
emissions• Acquisition of CASBEE
certification: 1 with A-rank orhigher• Setting CO2 emissions reduction
targets• Percentage of houses certified forenergy efficiency rating (Flat 35):
100% of detached houses• Newly added generation capacityof mega-solar power plant: 20MW

Greenhouse gas (GHG)
emissions（t-CO2）
2,500
2,000

1,959

1,500
1,000

1,585

• Total power generation: 360MWFY20202,023

FY2021

Electricity

915.2

985.9

City gas

3.2

0.5

LP gas0.0

0.4

Gasoline

140.8

144.4

Kerosene

0.7

0.3

Cold water

1.2

0.4

1061.11131.91,646

374

FY2020 Scope 1  Scope 2

The Group’s Scope 1 and Scope 2 greenhouse gas (GHG)
emissions and energy consumption are shown to the right:

Unit: kL of crude oil equivalent

500
0Environmental data

Energy consumption

378
FY2021*The scope of environmental data calculation covers
the MIRARTH HOLDINGS Group (11 consolidated
companies).
*The period covered is FY2020 and FY2021 (April 1,2020 to March 31, 2022).
*The figures for FY2021 are provisional and subject
to change.
*The Group excludes greenhouse gases other than
CO2 (chlorofluorocarbons, etc.) because of theirextremely small amounts, and it only calculates andreports CO2 emissions.

Total

Providing Environmentally Conscious Products and Services
Formulate an Environmental Policy
The MIRARTH HOLDINGS Group is committed “to design
sustainable environments for a happier future for both people and our planet” as our purpose. The Group thinks morepositively than anyone else about the future happiness ofpeople and the Earth, and proposes the creation of a sustainable environment that is friendly to the Earth.

The MIRARTH HOLDINGS Group contributes to the reduction of environmental impact by providing environmentallyfriendly products, including the supply of energy-efficient housing, and by promoting renewable energy projects.

Environmental Policy (excerpt)
1. Providing environmentallyfriendly buildings and spaces
2. A ddressing climate change

5. Compliance with environmental laws and regulations andenvironmental education

3. M aintenance and conservationof biodiversity

6. Establishment of environmental management

4. Promotion of resource recycling

Environmental Policy

https://www.mirarth.co.jp/en/sustainability/environmentandculture/policy/

LS Chiba Sammu East & West Power Plants
sign specified wholesale supply agreementwith Minna Denryoku Co.
In September 2021, Takara Leben Infrastructure Fund concluded a specified wholesale supply agreement with Minna
Denryoku Co. (currently UPDATER, Inc.) Minna Denryoku isdeveloping a service that connects electricity producers

and users with renewable energy sources. It aims to promote a decarbonized society and the spread of renewableenergy by supplying electricity produced at the LS Chiba
Sammu East & West Power Plants to households thatchoose energy with a low environmental impact and tocompanies that practice environmentally friendly management through Minna Denryoku.

Renewable Energy Supply Scheme
New scheme

Efforts to Address Climate Change

Investment fundPower generation company
Leben Solar Chiba SammuPower consumers whochoose renewable energy

Power transmission/
distribution business operator(local/urban areas,
RE100 member companies)

In June 2022, the MIRARTH HOLDINGS Group expressed its support for the Task Force on Climate-related
Financial Disclosures (TCFD) recommendations and subsequently joined the TCFD consortium. We recognizethat identifying, assessing, and managing the risks and opportunities posed by climate change and enhancing
the resilience of our business is essential to ensure our sustainable and stable earnings over the long term.

46

Governance

Strategies

The Representative Director of the Group is positioned as
the Executive Officer for climate-related issues, and the
Executive Officer is the Director in charge of sustainability.
The Chief Operating Officer reports regularly to the Chief
Executive Officer on matters related to climate change
response, including identification and assessment of climatechange impacts, management of risks and opportunities,
progress of adaptation and mitigation efforts, andestablishment of indicators and targets, at the Sustainability
Committee meetings. After deliberation and considerationof each agenda item by the attendees of the Sustainability
Committee, decisions are made by the Chief Executive
Officer.

We establish a process for identifying, evaluating, andmanaging the impact of climate-related risks and opportunities on our business activities, strategies and financial
plans and operate it appropriately. In identifying andassessing climate-related risks and opportunities, we aim
to do so systematically and objectively, utilizing scientificand academic knowledge.

MIRARTH HOLDINGS Integrated Report 2022

Managing risks and opportunities
By managing identified climate-related risks and opportunities and promoting resilience initiatives, we aim to reducebusiness risks and realize value creation opportunities toensure sustainable and stable earnings over the long term.

20-yearlease
agreement

20-year
specifiedagreement

Specified wholesale supply
agreement

Agreement regarding specified wholesale supply

Promoting energy-efficient housing –ZEH condominiums
Final energy consumption in Japan’s household sector has
roughly doubled since the oil crisis, accounting for about 15%of the total. In addition, the importance of energy conservationin the household sector has been reaffirmed in response to
the tight power supply and demand and the increasing instability of energy prices following the Great East Japan Earthquake. Against this backdrop, the Group is promoting ZEH*
condominiums, which reduce energy consumption. LEBEN
NAGANO NAKAGOSHO THE PEERLESS (Nagano Prefecture), completed in February 2022, is the first condominium in
Nagano Prefecture and the first of our properties to receive
the highest rank of five stars for “ZEH-M Oriented” certifica-tion. By taking measures to curtail peak energy use throughthe Internet of Things (IoT), conserving energy through total
electrification and collective power reception in private areas,and supplying CO2-free electric power and other initiatives,
we are realizing energy savings and comfortable living even in
the bitter cold of Nagano winters. The Group intends to continue providing new environmental value through the promotion of ZEH condominiums.
* Condominiums developed under the ZEH(net Zero Energy House) scheme that aims
to achieve the net zero target of annual primary energy consumption through energy
conservation by improving thermal insulation
efficiency and installing highly efficient equipment and systems, while maintaining comfortable interior environment.

LEBEN NAGANO NAKAGOSHO THE
PEERLESSMIRARTH HOLDINGS Integrated Report 2022

47

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Foundation

MIRARTH’s Strategy

Data

Corporate Governance
Basic Approach

Corporate governance system (as of October 1, 2022)

Rather than simply pursuing profit as part of its businessaccomplish for whom is essential for a sound, efficient, andactivities, the MIRARTH HOLDINGS Group strongly believes

sustainable company.
check and balance function but rather by spreading thecheck and balance across the entire company will function

generate long-term profits. Furthermore, reflecting the opin-

in sync with each person’s awareness.

Nomination
Committee

AdviseCompensation
Committee

Adviseions of diverse stakeholders in our business, and always

Sustainability
Committee

Efforts to Strengthen Corporate GovernanceInitiatives

2010

Introduction of executive officer system

2012

Introduction of stock option plan for stock-based compensation for directors(excluding outside directors) and executive officers
Start of evaluation of the effectiveness of the Board of Directors

2017

Term of office for directors changed from two years to one year

2019

Establishment of Nomination Committee and Compensation Committee

2020

Appointment of outside directors as chairpersons of the Nomination Committee andCompensation Committee

2021

Appointment of female outside directors

ReportRatio of outside directors increased to more than one-third(4 outside directors out of 12 directors)

Representative
Director

ReportReportReportDirection

Report

Audit

Audit

Group Internal Audit Office

Collaboration

Audit

Report

Audit

Audit

Subsidiaries and Affiliates

Board of Directors

Executive Officer System

The Company has appointed six directors, four of whom

Having introduced an executive officer system, the Com-

Disclosure of the skills matrix

are outside directors. All four outside directors have beenpany has clarified its directors’ management oversightTransition to a holding company structure

designated as independent officers. In principle, the Board

responsibilities and the business execution responsibilities

of Directors’ meetings are held once a month, and also onof its executive officers and is working to further speed

an extraordinary basis as required to ensure that decisions

up its decision making and strengthen its businessare made prudently and promptly, and that directors mutu-

execution.

Revision of executive compensation system(introduction of non-financial indicators as evaluation items)

Ratio of outside directors on the Board of Directors

Internal:

Outside:Outside:20%

67%

March 31,80% As of 2017

Internal:

33%

As of October 1,
2022

Corporate Governance System

48

Election/
Supervision

Collaboration

2016

2022

Collaboration(outside auditors)

Audit
Reportconsidering and responding to what a company should

Collaboration
Audit &
Supervisory Board

Audit

Board of Directors(including outside directors)

Accounting Auditor

roots as indexes or systems, we will work so that thecustomers, shareholders, and employees, while aiming to

Years

Election

Departments

We also believe that maintaining close relationships with

Election

Executive
Officers

out its duties as a responsible member of society.

Election

Furthermore, by not limiting ourselves to a systematicCompliance &Risk Management
Committeethat it must comply with laws, corporate ethics and carryOrdinary General Meeting of Shareholders

ally supervise the status of business execution.
Auditors are always in attendance at the Board ofAudit & Supervisory Board

Directors’ meetings and state their opinions as necessary.

As a system for the check and balance of decision

At the same time, auditors work closely with outside

making, all three auditors of the Company are outside

directors and, as necessary, audit and oversee the runningcorporate auditors. Each auditor is equipped withof the Board of Directors’ meetings and the status ofadequate background, experience, and mettle tobusiness execution. Also in attendance at the Board of

objectively carry out assessments and verifications.

Directors’ meetings are executive officers, the head of the

Besides audits for the Company, the auditors are alsoGroup Internal Audit Office, and the heads of other

involved in audits for affiliated companies, such as

departments, who have received requests from the Board

attending their board meetings and interviewing theirof Directors based on internal regulations, and express

directors, maintaining firm relationships with these

their opinions on each issue or reporting matter.

companies. Furthermore, the auditors and the accounting

The Company holds a Group Executive Committee

auditor work to further improve the effectiveness andAs a company with a board of auditors, in addition to

execution, and audit and supervision by auditors overonce a month to enhance the accurate decision-making

efficiency of audits by understanding and adjusting each

prudent and swift decision making by the Board of Directors,

directors’ state of business execution. We also introduced

process by holding preliminary deliberations andother’s annual schedules; going together to events such

the MIRARTH HOLDINGS Group has built a system toan executive officer system to clarify the management

discussions on important plans and implementation

as onsite inspections and checks on showrooms, andensure management proprieties. This includes appropriate

supervisory roles of directors and the business execution

proposals related to group management policies,

exchanging information as appropriate.

mutual supervision by directors over the state of business

responsibilities of executive officers.

management strategies, and group management.

MIRARTH HOLDINGS Integrated Report 2022

MIRARTH HOLDINGS Integrated Report 2022

49

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Strategy

MIRARTH’s Foundation

Data

Corporate GovernanceEvaluating the Effectiveness of the Board of Directors

Director’s skills matrix (as of October 1, 2022)
Name

Position

KazuichiShimadaRepresentative Director, Group CEO,Group COO and President Executive Officer

Corporate
Management

Finance/
Accounting

Legal/Risk
Sales/
Personnel andManagement Marketing Labor Management



















IT

GlobalBusinessNomination Compensation
Committee Committee

Director, Group CFO, Managing Executive

Masashi
Officer and Executive General Manager of
Yamamoto
Corporate Planning Headquarters

Kenji
KawadaOutside Director

Chiaki
Tsuji

Outside Director

Keiko
Yamahira

Outside Director

Overview

out a questionnaire. The process and results of the analysis

With the support of an outside consulting organization,and evaluation for the fiscal year ended March 31, 2022,

the Company analyzes and evaluates the effectiveness ofand the planned initiatives for the fiscal year ending

the Board of Directors by having all directors, including

March 31, 2023, are as follows.

outside directors, and corporate auditors anonymously fill

Chairperson









Chairperson

Analysis and evaluation process














Conduct and tabulate questionnaires for all directors
and auditors

NaohitoOutside Director
Yamagishi(size and diversity)

Analysis and evaluation by the Board of Directors

Group Internal Audit Office

the Accounting Auditor and adjusts the scopes of audits

The Company also established guidelines on internal

to seek efficient operation of various functions. Auditors

audits and established an Group Internal Audit Office asaccompany and witness operation audits conducted byan independent organization reporting directly to thethe Group Internal Audit Office, and work on building an

representative director to enhance and strengthen internal

effective and efficient audit system by verifying theaudits. In the proposal and execution of the internal audit

scope of the audit and collecting opinions asplan, the office coordinates the schedules of auditors andappropriate.

Reasons for nominations of outside directors and frequency of attendance at Board of Directors’ meetings
Name

Outside Director

Mr. Kawada was nominated for his involvement in the management of financial institutions and business firms, his wealth of experience and achievements regarding management, and his possession of extensive knowledge and insight.

Chiaki
Tsuji

Outside Director

Ms. Tsuji was nominated for her international work as a lawyer in Japan and Germany,
her high level of insight, extensive expertise, and wealth of experience andachievements.

15/15

Keiko
Yamahira

Outside Director

Ms. Yamahira was nominated for her many years of involvement in management in thereal estate industry, as well as for her wealth of experience and her extensive insightin management.

15/15

Outside Director
NaohitoYamagishi (newly appointed)

Efforts to improve

20/21



Evaluation results
for the year ended
March 31, 2021







–

Initiatives
for the year ended
March 31, 2022







Both committees are comprised of three or more directors selected by resolution of the Board of Directors, of[Compensation Committee]

and compensation of directors and others; and to further
enhance and reinforce corporate governance structures,
the Company established Nomination Committee andCompensation Committee as voluntary advisory bodies.

which a majority are independent outside directors,
thereby providing appropriate opportunities for outside
directors to participate and give advice. The committeesdeliberate and submit reports primarily on the matterslisted on the right based on advice from directors.

50

MIRARTH HOLDINGS Integrated Report 2022

(personnel system and provision of training opportunities to support
their activities)

 lthough the frequency of meetings, items to be discussed, and discussion time were evaluated as appropriate,Athe need for earlier distribution of materials and advance explanations were identified.
The composition of the Board of Directors needs to address diversity, including gender and internationality.
The internal and external directors communicate well with each other, and the external directors have opportunities to exchange opinions with each other outside of the board meetings was highly evaluated. On the other
hand, internal directors were required to actively speak out on areas other than their areas of responsibility,
and there should be a more active exchange of opinions between internal and external directors.
The company distributed advance materials two business days ahead of schedule and provided advance explanations.
 iming to increase the number of female managers and the ratio of female executives over the medium to longAterm, we promoted the introduction of systems that contribute to the promotion of women's activities.
Created and disclosed a skills matrix to clarify the skills required to realize the Company's medium- andlong-term strategies.
Regular training sessions were held to enhance the expertise of directors, and facilitators were appointed topromote lively discussions at the Board of Directors meetings.
Inclusion of outside consultants and establishment of an internal system for DX promotion.

[Nomination Committee](1) Matters relating to the composition and balance of
the Board of Directors(2) M atters relating to the election and dismissal of directors(3) M atters concerning the election and dismissal of
representative directors and executive officers(4) M atters concerning criteria for determining theindependence of outside directors(5) M atters related to succession planningsion-making processes relating to personnel appointments(formulation of management strategies with an awareness of profitability, capital efficiency, etc., establishment of a system to realize DX
promotion and appropriate supervision, human resource strategies, andinitiatives to improve sustainability)(4) S upport system and training for directors and corporate auditors

Nomination Committee and Compensation Committee
In order to increase the objectivity and transparency in deci-(deliberation items, frequency of meetings, agenda materials,
free and active discussion, deliberation time, etc.)(3) D iscussion and monitoring functions of the Board of Directors
Discussing issues and future efforts to improve
effectivenessAttendance at Board of Directors’Meetings for FY2021

Reason for Nomination

Mr. Yamagishi was nominated for his expertise and extensive experience developed
over many years in the National Police Agency as well as his occupational trackrecord and experience at the Ministry of Construction (currently Ministry of Land,
Infrastructure Transport and Tourism).

(2) O peration of the Board of Directors

Evaluation results for the year ended March 31, 2022 and initiatives for the year ending March 31, 2023

Position

Kenji
KawadaEvaluation Items (40 questions in total)(1) C omposition of the Board of Directors(1) Matters relating to compensation of directors andexecutive officers(2) M atters relating to basic policies and criteria oncompensation of directors and others(3) Other matters referred to the Compensation
Committee by the Board of Directors

The results of the questionnaire were generally positive, confirming that the effectiveness of the Board of Directors
as a whole has been secured, in line with the initiatives implemented in the fiscal year ended March 31, 2022.

Evaluation results
for the year ended
March 31, 2022







Initiatives
for the year ending
March 31, 2023

 s a result of earlier distribution of advance materials and advance explanations, the evaluation of this itemA
improved significantly.
 hile it was noted that the number of opinions from internal directors has increased, it was also pointed out thatW
more free and vigorous discussion is needed.
The company was highly evaluated as appropriately overseeing efforts to implement the DX.

Based on the results, the Board of Directors evaluated and analyzed the results, and exchanged opinions on
issues and future initiatives to improve the effectiveness of the Board of Directors.
As a result, it was recognized that future issues to be addressed include enhancing discussions on the Group's
overall crisis management system and management strategy, including investment in human capital, as well as
reflecting the opinions of shareholders and other investors.

MIRARTH HOLDINGS Integrated Report 2022

51

Board of Directors, Auditors and Executive Officers

Corporate Governance(As of October 1, 2022)

Directors

Executive Compensation
Basic policy
Directors’ compensation is determined based on advice

Policy and method of determining and calculatingcompensationfrom the Compensation Committee, a voluntary advisory
body, within the scope of the resolution passed at theTypes ofcompensation

General Meeting of Shareholders, following a comprehensive
review of performance, underlying risks, degree of respon-

Overview

The following five items “P.C.F.P.A.” are evaluated on a five-point scale according to thedegree of achievement for each fiscal year,
taking into overall consideration the position,
responsibilities, years in office, industry standards, and the standards of other companies.

sibility for Group management, and degree of progressunder the Medium-Term Management Plan. For executive
directors, a fixed ratio of compensation will be linked toperformance and the degree of contribution made by eachdirector, so that it will function as an incentive to achieve

Basic compensation

sustainable growth and serves the purpose of linking to sound,(monetarycompensation)effective, and stable management as an ongoing concern.
The specific basic policy regarding executive directors’







compensation is as follows.












Contributing to increasing the corporate value of the CompanyA level and a structure of compensation that enables the retentionof high-quality human resources esigned to reflect the Company’s medium- to long-term manageD
ment strategies and motivating executive directors to achieve it

Performance-based
compensation

 iving transparency, fairness and reasonableness to shareholdGers, employees, and other stakeholders and determined throughan appropriate process to ensure transparency, fairness andreasonableness

(stock compensation-type
stock options) etermined based on a compensation structure that is designed
D
to include base compensation, linkage with individual evaluation
and results

 erformance: results in the division for whichPeach director is responsible
Compliance: legal compliance, morals, etc.

Kenji Kawada

Director,
Group CFO,Managing Executive
Officer and Executive
General Manager ofCorporate Planning
Headquarters

Director(Outside Director)

May 1987	Joined Takara Leben Co., Ltd (currently
MIRARTH HOLDINGS, Inc.)
Jun. 2006	Representative Director, Executive Vice
President, and General Manager ofDevelopment Division
Apr. 2014	Representative Director, President, Chief
Executive Officer (CEO), Chief Operating
Officer (COO), and Chief Financial Officer(CFO)
Jun. 2019	Representative Director, Chief Executive
Officer (CEO), and President Executive
Officer
Oct. 2022	Representative Director, Group CEO, Group
COO and President Executive Officer,
MIRARTH HOLDINGS, Inc. (to present)

May 2016	Joined Takara Leben Co., Ltd. (currently
MIRARTH HOLDINGS, Inc.).
May 2017	Director, Leben Community Co., Ltd.
Director, Executive Officer, General Manager ofJun. 2017	General Planning Division, Senior General
Manager of Corporate Planning Department,
General Manager of Human Resources
Department, and General Manager of Corporate
Planning Department
Apr. 2021	Director, Chief Financial Officer (CFO),Managing Executive Officer, General
Manager of Administration Headquarters
Oct. 2022	Director, Group CFO, Managing Executive
Officer and Executive General Manager ofCorporate Planning Headquarters, MIRARTHHOLDINGS, Inc. (to present)

May 2003	Representative Director and President,
Resona Holdings, Inc.
Jan. 2016	Representative, TMA KAWADA OFFICE(to present)
Jun. 2017	Outside Director, PE&HR Co., Ltd. (topresent), Outside Director, Takara Leben Co.,
Ltd. (currently MIRARTH HOLDINGS, Inc.)(to present)
Jun. 2018	Outside Auditor, Konishi Co., Ltd.
Jun. 2021	Outside Director (Audit and Supervisory
Committee Member), Konishi Co., Ltd.
(to present)
Jun. 2022	Outside Director, Leben Clean Energy Co., Ltd.
Sep. 2022	Director, METRIKA Co., Ltd. (to present)Physical: the ability to promote business

Chiaki Tsuji

Keiko Yamahira

Naohito Yamagishi

Affinity: the ability to build relationships

Director(Outside Director)

Director(Outside Director)

Director(Outside Director)In principle, stock options are issued if the performance targets in a fiscal year are achieved.
 erformance indicators are set each year andP
reviewed in response to changes in the environment as needed.
 ype A stock options exercisable after a cerT
tain period of time and Type B stock options
exercisable upon retirement are granted.

 Type A stock options

50%

Masashi Yamamoto

Representative
Director,
Group CEO,Group COO andPresident Executive
Officer oresight: the ability to assess and analyze theFsituation, the ability to prepare business plans

Composition of Directors’ compensation
 Directors’ basic compensation

Kazuichi Shimada Type B stock options

40%

10%

Oct. 1976	Passed the bar examination
Apr. 1979	Registered as lawyer with the Tokyo Bar
Association
Oct. 1990	Qualified as lawyer in Germany (Japanese law)
Apr. 1993	Lecturer, Bunka Women’s University(currently Bunka Gakuen University)
Jul. 2001	Opened Yoshioka & Tsuji Law Office aspartner lawyer
Apr. 2004	Professor, Department of Law, Graduate
School, Yamanashi Gakuin University
Jun. 2017	Outside Director (Audit and Supervisory
Committee Member), Yorozu Corporation(to present)
Jun. 2019	Outside Director, Keihin Corporation(currently Hitachi Astemo, Ltd.)
Jul. 2019	Partner Lawyer, Kinorr Tokyo Law Office(to present)
Jun. 2021	Outside Director, Takara Leben Co., Ltd.
(currently MIRARTH HOLDINGS, Inc.)(to present)
Jun. 2022	External Audit and Supervisory Board
Member, Moriroku Holdings Company, Ltd.
(to present)

Apr. 1983	Joined Kubota House Co. Ltd. (currently
Sanyo Homes Corporation)
Jun. 2011	Director and Managing Director/Executive
Officer, Sanyo Homes Corporation
Jun. 2012	Director, Sanyo Reform Co., Ltd. (concurrent)
Jun. 2013	Director, Senior Managing Director, andExecutive Officer, Sanyo Homes Corporation
Jun. 2015	Director, President, and Executive Officer,
Sanyo Homes Corporation
Apr. 2017	Representative Director and Chairman,
Sanyo Homes Community Corporation
Jun. 2019	Outside Director, Joshin Denki Co., Ltd. (topresent), Outside Director, Fujitec Co., Ltd.
Jun. 2021	Outside Director, Takara Leben Co., Ltd.
(currently MIRARTH HOLDINGS, Inc.)(to present)
Jun. 2022	Outside Director, Shinagawa Refractories
Co., Ltd. (to present)

Apr. 1986	Joined the National Police Agency
Aug. 1994	Assistant Director, Road Policy Division,
Bureau of Public Roads, Ministry ofConstruction (currently Ministry of Land,
Infrastructure, Transport and Tourism)
Aug. 2010	Chief, Wakayama Prefectural Police
Headquarters
Aug. 2013	Director, Driver’s License Division, Traffic
Bureau, National Police Agency
Jun. 2014	Deputy Director of the Imperial Guard
Headquarters
Feb. 2016	Chief, Niigata Prefectural Police Headquarters
Mar. 2018	Director, International Police Center, National
Police Academy and Deputy DirectorGeneral, National Police Agency (in charge ofcare for victims of crimes)
Chief, Hokkaido Prefectural Police Headquarters
Jan. 2019	
Aug. 2020	Resigned
Jan. 2021	Advisor, Mitsui Sumitomo Insurance Co., Ltd.
(to present)
Jun. 2022	Outside Director, Takara Leben Co., Ltd.
(currently MIRARTH HOLDINGS, Inc.)(to present)

Auditors

Total amount of compensation of directors and corporate auditors (as of March 31, 2022)

Position

Total compensation(Millions of yen)

Total amount by compensation type (Millions of yen)
Basiccompensation

Stock options

Bonuses

Retirement
benefits

Directors(of which, outside directors)

500 (36)391 (36)108 (—)——

15 (6)

Auditors(of which, outside auditors)

29 (29)29 (29)

—

—

—

3 (3)

Total (of which, outside directors
and outside auditors)

529 (66)421 (66)

108 (—)——(Notes) 1. The amount paid to directors does not include the employee salaries of directors concurrently serving as employees.
2. Stock options are the amount recorded as an expense in the fiscal year related to the allocated stock acquisition rights, and are received by seven directors

52

Number ofrecipients

MIRARTH HOLDINGS Integrated Report 2022

18 (9)

Makoto Endo

Yuuko Miura

Asami Honma

Outside Full-time Auditor

Outside Full-time Auditor

Outside Part-time Auditor

Executive Officers
Shoichi Akisawa

Yoshitaka Tejima

Masahiro Yoshida

Tadayuki Hara

Hiroshi Iwamoto

Mika Takaara

Kentaro Taniguchi

Norihiko Yoshimura

Gou Yamaji

Noriyoshi Iseki

Executive General Manager ofCorporate Administration
Headquarters, General
Manager of Group Human
Resources Strategy
Department and Office
Manager of President’s Office

General Manager of Group DX
and VX Strategy Department,
Corporate Administration
Headquarters

MIRARTH HOLDINGS Integrated Report 2022

53

Compliance

Risk Management

Compliance Basic Policy

Basic Policy

The basic policy stipulates that in order to fulfill our corporate social responsibility, all organizations, officers, andemployees of the MIRARTH HOLDINGS Group shall comply with laws, regulations, and social norms, as well as
separately established ethics rules and shall strive to serve as an example for society.

Internal Whistle-Blowing System (Helpline)
The MIRARTH HOLDINGS Group has established an internal whistle-blowing system (helpline) to accept requests for
consultations and receive reports relating to issues such as
harassment and compliance violations. As an external pointof contact for whistle-blowing, we outsource responses toinquiries to a law firm, with which the Group has not conducted business, and have established an independentinternal consultation desk that directs inquiries to the corporate auditors; anonymous reporting is also possible. In
addition to having introduced a mechanism whereby directors involved in the content of consultations and reports are
not contacted, we are reinforcing the protection of report-

ing individuals, the subjects of reports, persons who cooperate with investigations, and others by thoroughly
implementing measures to prevent the parties concerned
from suffering disadvantages due to having made a report.
We are working tostrengthen compliancemanagement throughthe early detection andrectification of improper
conduct and otherissues.
Pocket-size card

Raising Employee Awareness
The Company strives to create a corporate culture of legal and regulatory compliance and respect for human rights
by administering compliance education on a variety of themes to its employees and preparing a range of manuals.

Personal information protection
Considering the protection of personal information to be partof our CSR, we have established a management system toprotect such information in an appropriate manner. In addition
to having created a personal information protection manual sothat all employees are able to handle personal information
appropriately while carrying out their business duties, we distribute a personal information usage and protection handbook,and make all employees thoroughly aware of basic knowledge
and rules. We also provide internal training led by instructorsthat are legal experts.

Preventing unfair business dealings
We actively carry out specialized training to ensure that alltransactions with customers are fair. The training, which
addresses conflicts of interest, aims to ensure that basic
principles are thoroughly implemented and introduces

numerous case examples to expand the knowledge ofattendees. Furthermore, we strive to foster greater understanding of laws such as the Real Estate Brokerage Act,
the Consumer Contract Act, and the Act against Unjustifiable Premiums and Misleading Representations.

Harassment prevention
The Company conducts ongoing employee training to ensurethat each and every employee is aware of harassment and tocreate a corporate culture that prevents harassment. In
harassment training, which is mainly for managers, we aim to
instill the basic concepts and specific actions needed to eliminate harassment. In addition, we are actively holding online
training sessions, including managers of Group companies,
and promoting the creation of a Group-wide culture that does
not tolerate harassment.

Dealing with Anti-Social Forces
The MIRARTH HOLDINGS Group’s basic policy against
anti-social forces is to adopt a firm stance in dealing withthem. In addition to actively participating in activities toeliminate organized crime under the guidance of our legal
advisor, we collaborate with external specialized agencies,
such as local police stations and legal advisors, to establish

54

MIRARTH HOLDINGS Integrated Report 2022

a system to deal with anti-social forces. With regard to our
trading partners, we are also thoroughly implementing
measures for the elimination of anti-social forces throughsteps such as exchanging memoranda on severing ties
with such forces and including clauses on their eliminationin our various contracts and agreements.

The fundamental risk management policies of the MIRARTH HOLDINGS Group are to ensure the safety of customers, business partners, officers, employees, and their family members, fulfill our social responsibilities, protect the
global environment, maintain ongoing business activities, and raise corporate value. To this end, we identify andmanage individual risks. We have established the Compliance & Risk Management Committee to carry out thesemeasures, and we have implemented comprehensive risk management throughout the Group.

Risk Management Structures
The MIRARTH HOLDINGS Group has established a Compliance & Risk Management Committee chaired by the president. The Committee verifies and reports on all
business-related risks, deliberates and makes decisions on
measures and management to avoid or mitigate risks, andtakes comprehensive measures to strengthen internal controls and prevent misconduct, non-compliance, and othersimilar incidents in the entire business management including
financial reporting. In addition, subcommittees—such as
those for business strategy, finance, IT & administration, andcompliance— are established as necessary to set up systems that make proactive proposals appropriate to the management of individual risks. Furthermore, the scope ofdeliberations within each subcommittee are reported andverified by the Compliance & Risk Management Committee

as appropriate, in accordance with the Compliance & Risk
Management Committee Rules. These matters are also
reported to the Board of Directors as necessary, for timely
decision-making in preparation for the occurrence of risks.
Reflecting on management strategies
Board of Directors

Report and verify based on rules
Compliance & Risk Management Committee

Proposals appropriate to the management of individual risks
Subcommittees
Business Strategy

Finance

IT & Administration

Compliance

Risk identification and analysis

Financial/Non-financial data, changes in the external environment, etc.

Preventive Approach to Risk
In order to respond promptly to the occurrence of emergency
situations such as corporate scandals, accidents, natural disasters, administrative action, serious criminal conduct by employees, and so on, the MIRARTH HOLDINGS Group has
established crisis management structures and adopted Crisis
Management Rules and a Crisis Management Manual. The Crisis Management Rules define crises and specify proceduresfrom initial responses to the formation and disbanding of
response organizations. There are also two sets of detailed crisis
control rules regarding crisis responses and disaster countermeasures. With regard to crisis responses, the Rules specify cri-

sis management levels, responsibilities and authority, andinformation-sharing lines, as well as responsive measures to be
implemented as disaster countermeasures during a disaster.
Additionally, each division works with the division responsible for crisis management to formulate risk recovery andprevention plans and makes reports to the Compliance &Risk Management Committee at its monthly meetings. As apart of our business continuity planning (BCP), we adopt a
preventive approach to risk management, including the
preparation of manuals for the continuation and recovery ofbusiness operations in the event of an emergency situation.

Responses to COVID-19
Initiatives for employees

Initiatives for customers

To reduce the risk of infection among employees, we continue to implement a variety of measures, including telework and flexible work schedules. Additionally, eachbusiness division opts to adopt shortened working hours,
we are recommending that a limit be placed on businesstrips and the holding of web conferences with people outside the Company. Depending on the infection status, weare restricting holding dinner parties, welcome and farewellparties as well as participation in outside events.

In the model rooms, we thoroughly implement measures
such as the wearing of masks and gloves, regular ventilation, and the sterilization of equipment. In the event of astaff member testing positive after an antigen test, we strictly adhere to the policy of promptly arranging a consultation
with a medical institution or, if they are showing symptoms,
taking a PCR test. As an added safeguard, employees who
travel from the Tokyo metropolitan area to participate in previews and information sessions in other regions are required
to show in advance proof that they have tested negative.
MIRARTH HOLDINGS Integrated Report 2022

55

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Strategy

MIRARTH’s Foundation

Data

Interview with an Outside Director

Keiko Yamahira
Outside Director

Please give us your evaluation of
MIRARTH HOLDINGS.
A year has passed since my appointment as an outside
director of the Company, and I have gained a strong
impression that the Group possesses the spirit to take onchallenges and the ability to surpass itself while continuing
to evolve with a sense of urgency.
There is a saying used in corporate management: “Thesnake that cannot shed its skin perishes.” In other words,
staying rooted to the spot and not adapting in an era of
rapid change will mean stagnation and spell the demise of
a company. Even though having a history that dates back
50 years to its founding, the Company has maintained a
corporate culture that faces challenges and has retained its
ability to surpass past performance. In the past decade up
to the fiscal year ended March 2022, net sales haveapproximately tripled, and I think this attitude is one of thefactors behind the significant growth in performance oversuch a short period of time.
Running contrary to that, having expanded businessdomains over such a short period of time, I feel there will
be a heightening need for an “optimized business portfolio,”
which is one of the 7 Elements of the Medium-Term Management Plan, in the years to come. Having transitioned toa holding company, I recognize the importance of restructuring the portfolio so that the synergies within the Groupcan be maximized.

In transitioning to a holding company,
please tell us about any discussions thathave left a lasting impression on you.
One of the most important roles in being an outside director is management oversight. Concerning agenda items, I
have endeavored to fulfill my role as an outside director, forexample by frankly questioning whether the optimal solution has been selected objectively from the stakeholder’spoint of view.

56

MIRARTH HOLDINGS Integrated Report 2022

What has left a lasting impression on me above all else
were the discussions about the company name, MIRARTHHOLDINGS. The Board of Directors thoroughly debatedwhether it would be the optimal solution to adopt a completely different company name, for the very reason that
Takara Leben had been raising its name recognition
through aggressive advertising campaigns. Through these
discussions, I was able to gain a sense of the executives’
fervent desire to show what form they wish to take as acorporate group in the years to come rather than theirname recognition now; in other words, to contribute to the
future and the global environment.
Furthermore, as business continues to expand throughdiversification, transitioning to a holding company will
involve major organizational restructuring to accelerate
decision-making and clarify management responsibilities.
For this reason, I thought that there would be concerns
about personnel changes and confusion among employees
about Takara Leben becoming a holding company. An outside director pointed this out, and discussions were heldon the importance of alleviating employees’ concerns andgaining consensus through sufficient explanations so thatthe entire Group would be moving forward in one direction.

Please tell us about the issues facing
the evolution of governance at
MIRARTH HOLDINGS.
One of the points I can mention as being characteristic of
our Board of Directors’ meetings is that there are many discussions on matters relating to business execution. Previously at Board of Directors’ meetings, there tended to be a
lot of time spent deliberating projects on account of thelarge amount of assets handled as a real estate businessdeveloper. Regarding this issue, my expectations are that,after having become a holding company, we will be able todelegate business execution matters to the operating companies. As a holding company, we will then be able tofocus more on improving the Group’s medium- to long-term management strategies and plans as well as on ourmonitoring function.
In the years to come, it will also be important to pay close
attention to the risk management aspects within the entire
Group and to ensure that effective governance is being
exercised over subsidiaries. On the one hand, the Group
attracts diverse human resources from outside, but on theother, issues have arisen with instilling the corporate philosophy and the sharing of information. After organizational
restructuring, I believe that efforts will be required to devise
standardization of the corporate philosophy and prevent
scandals and accidents at Group companies, by creating
and sharing unified rules within the Group and coordinating
related departments on a cross-organizational basis.
Promoting the delegation of business execution to operating companies and strengthening the monitoring function
as a holding company will demand that the Board of Directors also be of an appropriate institutional format. Goingforward, it will be considered necessary to revise the system as required, including in terms of the composition ofoutside and internal directors.

sees the organizational restructuring as an opportunity toproceed with initiatives through discussion going forward.

Please point out the issues that
MIRARTH HOLDINGS should address toachieve sustainable growth.
In the corporate management of today, sustainability is an
important theme that simply cannot be overlooked. Considering social and environmental sustainability as well as
corporate sustainability to be inextricably linked, I believethat as an operating company MIRARTH HOLDINGS
should be contributing to society through its businesses.
Involved in housing development, urban development,
and renewable energy, the Group is deeply involved in thesustainability of society as a whole. The Group is able toPlease explain your role as chairpersonof the Compensation Committee and any
points for improvement with respect toexecutive compensation.
At MIRARTH HOLDINGS, outside directors conduct individual interviews and assess all the executive officers. I
consider that there are two qualities that make a person
suitable as a leader: the ability to indicate direction withdecisiveness and the ability to empathize with others. It is
my belief that we can maximize management resources by
having the organization be driven by people who can leadfrom the front in making decisions, are in tune with people
and can share their thoughts.
With regard to the executive compensation system, acertain percentage of compensation is linked to businessperformance and the degree of contribution of individual
directors for them to show commitment to more proactive
management toward sustainable growth. There is also aframework for assessing the degree by which they havecontributed to ESG by a coefficient, and thus I believe that
there is no problem with the current system. Concerning
the compensation systems in place at subsidiaries, however, I feel that it will be necessary to take into account thosecompanies that have joined the Group through M&A andfactors such as differences in business scale to ensure
consistency across the entire Group. Regarding compensation systems as one of the issues to be addressed on across-organizational basis, the Compensation Committee

take a comprehensive approach to address the variety ofissues that local communities have been facing in recent
years, such as the promotion of compact cities as a solution to population decline and the resultant increase in public costs, innovative urban development and the building ofsocieties that utilize IoT and the latest technologies. The
key to further increases in the contributions the businesses
make going forward will be how to effectively increase
Group synergies.
The Group has been achieving growth by always taking
the initiative and responding quickly to changes in thetimes with a sense of urgency and its ability to surpass
itself. Looking ahead to the 50th anniversary and beyond, I
hope that MIRARTH HOLDINGS will continue to create
new value as a future environment design company andfurther enhance its corporate value while maintaining its
venture spirit.

MIRARTH HOLDINGS Integrated Report 2022

57

Introduction

MIRARTH’s Value Creation Story

MIRARTH’s Strategy

MIRARTH’s Foundation

Data

Eleven-Year Financial/Non-Financial Summary
Financial Data

(Millions of yen)

2012.32013.32014.32015.32016.32017.32018.32019.32020.32021.32022.3

Net sales¥55,191¥64,907¥71,963¥76,956¥76,268¥103,599¥110,851¥132,005¥168,493¥148,397¥162,744

Gross profit

13,49014,37818,19918,311

17,835

21,86925,77926,88630,51629,92833,117

Operating income

5,930

6,361

9,798

9,257

7,563

10,34912,597

10,046

11,901

10,78911,877

Ordinary income

5,071

5,792

9,181

8,540

6,708

9,496

11,792

9,027

11,201

9,933

10,258Net income attributable to ownersof parent

3,681

4,074

5,869

5,718

4,308

6,107

7,367

6,426

5,361

4,693

6,215

Cash flows from operating
activities

11,464875

22,996(8,155)2,428

22,644

9,869

22,42847,70826,33023,189Cash flows from investing
activities(792)(1,590)(4,567)(7,998)(19,816)(27,540)(34,463)(34,347)(32,136)(25,090)(27,871)

Cash flows from financing
activities(2,685)

1,229

(366)

6,314

19,6636,129

24,012

3,427(1,608)2,654(1,132)

Capital expenditure

805

1,658

4,163

8,095

22,756

20,81430,302

29,902

28,841

25,66625,400Depreciation and amortization

319

356

437

717

1,192

2,397

1,943

2,447

2,031

1,803

2,838

Total assets

70,27775,013

95,891

101,738

129,744

139,874

177,588

184,893

195,448

204,315

223,473

Current assets

50,91955,932

72,52467,31975,75386,585102,931

98,512

115,314125,686

142,625

Fixed assets

19,357

19,081

23,366

34,40053,94553,237

74,61886,28679,87478,53180,792

Net assets

21,13824,147

27,13831,18933,67736,792

42,90747,734

51,13954,63259,601

Interest-bearing debt

32,39035,09637,765

48,81270,396

79,864

106,663

111,821

114,036

118,570

127,969

Net income per share (Yen)

29.12

33.61

50.64

50.61

38.99

56.14

68.12

59.33

49.45

43.22

57.10

Net assets per share (Yen)

170.83201.90237.53279.11304.71

339.29394.90436.68467.05498.78542.04

Dividend per share (Yen)

13.0

15.0

5.0

6.0

13.0

15.0

16.0

16.0

19.0

14.0

18.0

ROE (%)

18.6

18.0

22.9

19.7

13.3

17.4

18.6

14.3

10.9

9.0

11.0

ROA (%)

5.6

5.6

6.9

5.8

3.7

4.5

4.6

3.5

2.8

2.3

2.9

Per Share Information:

Operating Indices:

Operating income margin (%)

10.7

9.8

13.6

12.0

9.9

10.0

11.4

7.6

7.1

7.3

7.3

LTV (%)

46.1

46.8

39.4

48.0

54.3

57.1

60.1

60.5

58.3

58.0

57.3

D/E ratio (Times)

1.5

1.5

1.4

1.6

2.1

2.2

2.5

2.3

2.2

2.2

2.1

Debt ratio (Times)

2.3

2.1

2.5

2.3

2.9

2.8

3.1

2.9

2.8

2.7

2.7

Current ratio (%)

136.3

192.7

192.3

193.4

176.7

171.5

182.0

168.3

175.7

225.9

190.1

Inventory turnover (Times/Year)

1.9

2.0

2.1

2.2

2.0

2.3

1.9

1.9

2.4

2.1

2.0

Equity ratio (%)

30.1

32.2

28.2

30.6

25.8

26.2

24.1

25.6

25.9

26.5

26.5

Dividend payout ratio (%)

11.2

11.2

9.9

11.9

33.3

26.7

23.5

27.0

38.4

32.4

31.5

* On July 1, 2013, the Company split its shares at a ratio of 1:4 for one common stock. Dividend per share for fiscal 2013 and fiscal 2014 are calculated, reflecting the effect of the stock split.
Net income per share and net assets per share are also calculated based on figures after the stock split.

Non-Financial Data
2012.32013.32014.32015.32016.32017.32018.32019.32020.32021.32022.3

351

398

437

551

613

690

789

892

973

1,061

1,200

Male

287

323

348

426

455

496

547

618

675

739

815

Female

64

75

89

125

158

194

242

274

298

322

385

Percentage of women in
management (%)*

6.00

10.20

11.54

9.43

8.20

9.23

8.10

9.46

8.33

7.34

7.34

Percentage of persons withdisabilities employed (%)*

0.46

0.44

0.41

0.34

0.94

1.20

1.09

2.19

2.06

1.98

2.70

Number of employees* Scope of calculation: Takara Leben

58

MIRARTH HOLDINGS Integrated Report 2022

MIRARTH HOLDINGS Integrated Report 2022

59

Corporate Data (As of October 1, 2022)
Company name: MIRARTH HOLDINGS, Inc.

Stock Information
Net sales:

162,744 million yen(Fiscal year ended March 31, 2022)

Securities Code:8897

No. ofemployees:

343 (Male, 271; Female, 72)(As of March 31, 2022)

Stock Exchange
Listing:

Prime Market, Tokyo Stock Exchange

Head office:

TEKKO BUILDING 16F,
1-8–2 Marunouchi, Chiyoda-ku,
Tokyo, 100-0005, Japan
TEL.: +81-3-6551-2125* Changed the company name from Takara Leben Co., Ltd. on October 1, 2022.

Representative: Kazuichi Shimada,

Representative Director

Established:

September 1972

Capital stock:4,819 million yen(As of March 31, 2022)

Total Number of Shares
121,000,000 shares
Outstanding (As of March 31, 2022):

Shareholder Registry Sumitomo Mitsui Trust Bank, Ltd.
Administrator:
1-4-1, Marunouchi, Chiyoda-ku, Tokyo

Major Shareholders (Top 10) (As of March 31, 2022)

Main Operating Companies

Takara Leben Co., Ltd.
Planning, development, and sales of
new built-for-sale condominium,
the real estate liquidation, rental,
and distribution businesses

Leben Clean Energy Co., Ltd.
Renewable energy businessTakara AssetManagement Co., Ltd.

Takara PAG Real Estate
Advisory Ltd.

Investment managementbusiness

Investment managementbusiness

100 shares

Number of Shareholders(As of March 31, 2022):

60,364

Number of Shares Held By Investor Segment (As of March 31, 2022)

Shares(Thousands)

Percentage
share (%)

Yoshio Murayama

25,633

21.18

Takara Leben Co., Ltd.

11,948

9.88

The Master Trust Bank of Japan, Ltd.
(Trust Account)

11,365

9.39

Custody Bank of Japan, Ltd. (Trust Account)

2,874

2.38

Murayama Kikaku Co., Ltd.

2,000

1.65

RUDEN HOLDINGS Co., Ltd.

1,600

1.32

NORTHERN TRUST CO. (AVFC)
RE FIDELITY FUNDS

1,495

1.24

Takara Leben Business Partner
Shareholding Association

1,309

1.08

Sumitomo Mitsui Banking Corporation

1,184

0.98

JP MORGAN CHASE BANK 385781

1,091

0.90

Name of shareholder

Trading Unit of Shares: Financial instrument trader (Securities companies)

2.22%
2,681Thousand shares Individuals Treasury stock

9.88%
11,948 Thousand sharesand others
56.06%
67,836

 Non-Japanese investors

Thousand shares

11.81%
14,289 Thousand shares Other domestic

corporate investors
5.02%
6,071Thousand shares

Total number ofshares outstanding
121,000,000

 Financial institutions

15.02%
18,172 Thousand shares

Leben Community Co., Ltd.
General management business forcondominiums, etc.

Declaration of Authenticity

Leben Home Build Co., Ltd.
Detached house and construction
contract businesses

Publication of the MIRARTH HOLDINGS’ 2022 Integrated Report

Takara Leben Realnet Co., Ltd.
Real estate distribution business

Leben Zestock Co., Ltd.
Renewal resale business

Leben Trust Co., Ltd.
Real estate rental managementbusiness

Takara Leben (Thailand) Co., Ltd.

Kensuke Suzuki

Investment in real estate business

IR Officer

Real Estate Business

Energy Business

Asset Management Business

Other Businesses (construction, hotel management and nursing home operation)

60

MIRARTH HOLDINGS Integrated Report 2022

Takara Leben, which celebrated its 50th anniversary in September 2022, transitioned to aholding company structure and changed its name to MIRARTH HOLDINGS, Inc. in October in order to evolve beyond the confines of a general real estate business developer into
a company that makes the future of people and the Earth happier. This publication is thefirst integrated report issued by the MIRARTH HOLDINGS Group, which is undergoing atransformation to create sustainable corporate value.
In addition to MIRARTH’s purpose and the business strategies of each new segment,
this report expands on the scope of information disclosure on a wide range of the Group’s
initiatives. This includes the establishment of the Sustainability Committee and ourendorsement of the recommendations put forward by the Task Force on Climate-related
Financial Disclosures (TCFD) together with efforts aimed at contributing to the realizationof a sustainable society, which is our mission as a corporate group that embraces the realestate, energy and asset management businesses.
As the person with overall responsibility for producing this report, I hereby state that theprocesses used were appropriate and the information accurate.
We hope that this report will provide readers with a better understanding of the Group’s
value creation story and an opportunity to create value in concert with our stakeholders.

MIRARTH HOLDINGS Integrated Report 2022

61

TEKKO BUILDING 16F, 1-8-2 Marunouchi,
Chiyoda-ku, Tokyo, 100-0005, Japan
Investor Relations Office
TEL: +81-3-6551-2133 FAX: +81-3-6551-2126
https://mirarth.co.jp/en/