Second Quarter Consolidated Financial Reportfor the Six Months Ended September 30, 2023 (Japan GAAP)
October 30, 2023
Listed company name

MIRARTH HOLDINGS, Inc.

Stock Exchange Listings Prime market of the Tokyo Stock Exchange

Security code

8897

Representative

Kazuichi Shimada, Representative Director

Contact person

Masashi Yamamoto, Director Managing Executive Officer

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

TEL +81-3-6551-2133

Scheduled date for release of Annual Securities Report November 13, 2023

Scheduled date for commencement of dividend payments December 4, 2023

Preparation of supplementary material on quarterly financial results: Yes(for institutional investors and analysts)

Quarterly results briefing: Yes(Amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results of Year ending March 31, 2024 2nd quarter (April 1, 2023-September 30, 2023)(1)Consolidated Operating Results (Cumulative)(Percentages indicate year-on-year changes)
Net sales

Operating income

Net income attributable toowners of parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Second Quarter of Fiscal Year Ending March 202459,179△19.5

2,370

△45.2

1,382

△63.787△97.0

Second Quarter of Fiscal Year Ending March 2023

73,471

46.7

4,328

635.4

3,810-

2,875-(NOTE)Comprehensive

Second Quarter of Fiscal Year

incomeEnding March 2024

Millions279

of yenSecond Quarter of Fiscal Year(△90.3%)

Quarterly net income per share

Quarterly diluted net income per share

Yen

Yen

0.79

0.79

26.35

26.16

Second Quarter of Fiscal YearEnding March 2024
Second Quarter of Fiscal YearEnding March 2023

2,901

Ending March 2023

Millionsof yen(-%)(2)Consolidated Financial Position
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

353,882

60,29816.8

341,669

65,142

Second Quarter of Fiscal YearEnding March 2024
Year ended March 31, 2023
Second Quarter of Fiscal Year Ending
Reference: Shareholders' equity
March 2024

Millions59,414
of yen18.0
Millions ofYear ended March 31, 2023

61,377yen

2. Dividends
Annual Cash Dividends per Share
End of first quarterEnd of second quarterEnd of third quarter

Term end

TotalYen

Yen

Yen

Yen

Yen

Year ended March 31, 2023

-

4.00

-

18.00

22.00

Year ending March 31, 2024-

6.00
-18.0024.00

Year ending March 31, 2024
(Forecast)(NOTE)Revisions to the most recently announced dividend forecasts: None
3. Forecast of Consolidated Financial Results of Year ending March 31, 2024 (April 1, 2023 to March 31, 2024)(Percentages indicate year-on-year changes.)
Net sales

Full year

Operating income

Net income attributable toowners of parent

Ordinary income

Net income per share

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

Yen

188,71023.0

13,70094.9

12,700

152.3

8,500

85.4

77.41

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

※ Notes(1) Changes in significant subsidiaries in the current quarterly consolidated Cumulative period(Changes in specified subsidiaries accompanied by changes in the scope of consolidation): None
New:-(Company name:-) Excluded:-(Company name:-)(2)Application of special accounting methods for preparing quarterly consolidated financial statements: No(3)Changes in Accounting Policy, Changes in Accounting Estimates, and Restatements① Changes in accounting Policy due to revision of accounting standards: None
② ① Changes in Policy other than accounting: None
③ Changes in accounting estimates: None
④ Restatement of revisions: None
(4)Issued shares count (Common stock)① Term end Issued shares counts (including Treasury stock)

Second Quarter of Fiscal

Year ended March 31,
121,000,000SharesYear Ending March 2024

② Number of Term end Treasury stock

Second Quarter of Fiscal

Year ended March 31,11,091,707SharesYear Ending March 2024

③ Average number of shares during the period (quarterly

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

Second Quarter of Fiscal

Second Quarter of Fiscal
109,831,425Sharesconsolidated cumulative period)

Year Ending March 2024

109,091,304SharesYear Ending March 2023

※ Quarterly financial results are not subject to quarterly reviews by Certified Public Accountant or Audit companies.
※ Explanation of the proper use of financial results forecasts and Other special notes(Cautionary Statement with Respect to Forward-Looking Statements)
The earnings forecasts and other forward-looking statements herein are based on information currently available to the Company and on certain assumptions deemed
to be reasonable, and do not constitute guarantees by the Company of future performance. Actual results may differ materially from the forecast depending on a rangeof factors.

(Method of Obtaining Supplementary Briefing Materials on Financial Results)
Supplementary materials for financial results are posted on our website and disclosed in TDnet.

(Financial Results Details Obtaining Methods)
We plan to distribute a video presentation of our financial results on our website.

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2023

○Attachments Table of Contents

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

2(1) Explanation of Operating Results

2(2) Explanation of Financial Position

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

2

2. Quarterly Consolidated Financial Statements and Major Notes

3(1) Quarterly Consolidated Balance Sheets

3(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income

5

Quarterly Consolidated Statements of Income
Second Quarter Consolidated Cumulative Period

5

Quarterly Consolidated Statements of Comprehensive Income
Second Quarter Consolidated Cumulative Period

6(3) Notes to Quarterly Consolidated Financial Statements

7(Notes on Going Concern)

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

7-1-MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2023

1. Qualitative Information Regarding Consolidated Financial Results for the Second Quarter of the Fiscal Year under Review(1) Explanation of Operating Results① Results of Operations by Segment
In Real Estate Business, Net sales for this segment was 50,340 Millions of yen (down 24.2% from the same quarter of the previous year) due to new
condominiums, , liquidation, new detached house sales, renewal and resale, real estate rental, real estate management, and real estate Other.
In Energy Business, Net sales of this business was 5,682 Millions of yen (up 13.1% from the same quarter of the previous year) due to revenue fromelectricity sales at power generation facilities.
As for Asset Management Business, the business Net sales was 276 Millions of yen (down 56.7% from the same quarter of the previous year) due tomanagement fees and other factors.
In Other Businesses, Net sales of this business was 2,879 Millions of yen (up 104.0% from the same quarter of the previous year) due to construction
contracting and other factors.
Consequently, Current 2nd Quarter Consolidated Cumulative period's results of operations are as follows: Net sales 59,179 Millions of yen (-19.5% QoQ),
Operating income 2,370 Millions of yen (-45.2% QoQ), Ordinary income 1,382 Millions of yen (down 63.7% QoQ), and Net income attributable to owners ofparent 87 Millions of yen (down 97.0% QoQ).

② Progress of contract execution
Regarding Current 2nd Quarter Consolidated Cumulative period sales Actual, 2,022 units were contracted for 2,200 units scheduled to be delivered to Full
year, and the progress rate is 91.9%.

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

Units under contract
Contract progress ratio (%)

scheduled for delivery

From April to September

Previous period

1,780

1,676

94.2

1,166

Current period

2,200

2,022

91.9975(2) Explanation of Financial Position
Assets, Liabilities and Net Assets
At the end of our Current 2nd Quarter Consolidated Accounting Period, Assets, Liabilities and Net Assets of Total assets increased by 12,212 Millions of yen
from 353,882 Millions of yen to End of Previous Consolidated Accounting Period as a result of steady purchases of Assets for business use and other factors.

(Current Assets)
Thanks to steady purchases of business Assets and other factors, Current assets increased by 16,426 Millions of yen to 205,155 Millions of yen compared to
End of Previous Consolidated Accounting Period.
(Fixed Assets)
Despite the steady purchase of Assets for business use, Fixed assets decreased by 4,203 Millions of yen compared to 148,680 Millions of yen and End ofPrevious Consolidated Accounting Period mainly due to the transfer to Real estate for sale.
(Current Liabilities)
Due to the increase in Short-term borrowings and the transfer of short-and long-term Category, Current liabilities increased by 17,488 Millions of yen to179,646 Millions of yen compared of End of Previous Consolidated Accounting Period.
(Fixed Liabilities)
Fixed liabilities decreased by 431 Millions of yen from 113,937 Millions of yen to End of Previous Consolidated Accounting Period mainly due to thetransfer of short-and long-term Category of borrowings.

(Net Assets)
Total of Net assets has decreased by 4,844 Millions of yen compared to 60,298 Millions of yen and End of Previous Consolidated Accounting Period due tofactors such as the reduction of Non-controlling interest due to the acquisition of fractional Investment units of Dividend of surplus and Takara Leben
Infrastructure Fund Inc.

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

-2-MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2023

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

Current 2nd Quarter Consolidated
Accounting Period(As of September 30, 2023)

AssetsCurrent assets
Cash and deposits

47,872

Notes, accounts receivable-trade and contract assets

3,477

38,255
3,982

Real estate for sale

34,14732,160Power generation facilities for sale

3,375

2,998

Real estate for sale in progress82,713

107,928

Costs incurred on uncompleted contracts
Other

011

17,41520,093△275△275

188,728

205,155

Buildings and structures (net)28,87927,885

Machinery, equipment and vehicles, net

48,70549,636

Land

41,394

37,104

Other (net)

6,382

6,595

125,362

121,222

Goodwill

3,918

3,610

Other

4,457

4,841

Total intangible assets

8,376

8,452

19,14819,006

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

Total property, plant and equipment
Intangible assets

Investments and other assets
OtherAllowance for doubtful accounts△2△1

Total investments and other assets

19,14519,005

152,884

148,680

Total fixed assets
Deferred assets
Total assets

5646

341,669

353,882

Liabilities
Current liabilities
Notes and accounts payable-trade

16,342

7,561

Short-term borrowings

92,069107,872

Current portion of bonds payable

190

140

Current portion of long-term loans payable

25,99735,454

Income taxes payable

4,318

3,641

Allowance

1,250

1,337

Other

21,987

23,638

Total current liabilities

162,157

179,646

104,828

104,149

4,015

4,220

Fixed liabilities
Long-term loans payable
Bonds payable
Allowance

13585

Liabilities related to retirement benefits

1,100

1,204

Other

4,290

4,278

Total Fixed liabilities
Total liabilities-3-114,369

113,937

276,527

293,584

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2023

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

Current 2nd Quarter Consolidated
Accounting Period(As of September 30, 2023)

Net assets
Shareholders' equity
Capital stock

4,819

Capital surplus4,820

4,819
4,574

Retained earnings

55,97154,081

Treasury stock△4,174△4,137

Total shareholders' equity

61,43659,339

Accumulated other comprehensive income△7154

Foreign currency translation adjustments

312

Remeasurements of defined benefit plans

88△5975

220368Net unrealized gains on available-for-sale securities

Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interest

3,544

515

Total net assets

65,14260,298341,669

353,882

Total liabilities and net assets-4-MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2023

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Second Quarter Consolidated Cumulative Period)(Millions of yen)Previous 2nd Quarter Consolidated
Cumulative period(From April 1, 2022
To September 30, 2022)

Current 2nd Quarter Consolidated
Cumulative period(April 1, 2023
To September 30, 2023)

Net sales

73,471

59,179

Cost of sales

58,32845,391Gross profit

15,143

13,787

Selling, general and administrative expenses

10,814

11,417

Operating income

4,328

2,370

Interest income

1123

Dividend income

153

75

Commission received

37

32

Income from insurance claim

16

220

Gain from equity method investment

43

108

Miscellaneous income

136

125

Total non-operating income

399

585

Interest expenses

751

1,411

Miscellaneous expenses

166

161

Non-operating income

Non-operating expenses

Total non-operating expenses

917

1,573

3,810

1,382

Gain on sales of stock of affiliates-

6

Total extraordinary income-

6

Impairment loss-

408

Extraordinary losses Total-408

3,810980-260

3,810719

Ordinary income
Extraordinary income

Extraordinary loss

Current net income for the quarter before income taxes and minority
interests prior to distribution of gain/loss on silent partnership
Distribution of loss in partnership
Current net income for the quarter before income taxes and minority
interests
Income taxes, inhabitant taxes and business taxes

822

1,062

Income tax adjustments

57

△488

Total income and other taxes
Net profit
Quarterly net income attributable to non-controlling interests
Net income attributable to owners of parent-5-880

574

2,929145

54

58

2,87587

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2023

(Quarterly Consolidated Statements of Comprehensive Income)(Second Quarter Consolidated Cumulative Period)(Millions of yen)Previous 2nd Quarter Consolidated
Cumulative period (From April 1, 2022 toSeptember 30, 2022)

Current 2nd Quarter Consolidated
Cumulative period (From April 1, 2023 to
September 30, 2023)

2,929

145

Net profit
Other comprehensive income△40125

Foreign currency translation adjustments

98

Remeasurements of defined benefit plans

20Net unrealized gains on available-for-sale securities

Total other comprehensive income
Quarterly comprehensive income△281342,901

2792,8462215458(Comprising)
Quarterly comprehensive income attributable to owners of the parent
Quarterly comprehensive income attributable to non-controllinginterests-6-MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2023

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

-7-