Consolidated Financial Report for the Fiscal Year Ended March 31, 2024 [Japanese GAAP]May 13, 2024
Stock Exchange Listings
Prime market of the Tokyo Stock Exchange

Listed company name MIRARTH HOLDINGS, Inc.
Security code
Representative8897
URL https://mirarth.co.jp/en/
Kazuichi Shimada, Representative Director
Masashi Yamamoto, Director Managing Executive
Contact person
TEL +81-3-6551-2133
Officer
Scheduled date of Annual Shareholders' Meeting: June 26, 2024
Scheduled date for commencement of dividend payments June 27, 2024
Scheduled date to file Securities Report Statement: June 26, 2024
Financial Results: Preparation of Supplementary Explanations materials: Yes
Holding of financial results briefing: Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results of Year ending March 31, 2024 (April 1, 2023 to March 31, 2024)(1)Consolidated Results of Operations(Percentages represent year-on-year changes.)
Net sales

Operating income

Millions of yen%
Millions of yen%
Millions of yen
Year ending March
185,19420.7
15,457119.9
12,98431, 2024
Year ending March
153,472
△5.7
7,030
△40.8
5,033
31, 2023(NOTE)Comprehensive income Year ending March 31, 2024 8,409 Millions of yen (118.3%)
Year ending March 31, 2023 3,852 Millions of yen(△38.8%)

158.0

8,178

78.4

△50.9

4,584

△26.2

Net sales
Operating income
rate%

Diluted Net income per share

Return on equity

Yen

Yen

%

Total assets
Ordinary income
rate
%

74.39

73.72

12.9

3.8

8.3

41.90

41.58

7.6

1.8

4.6

Net income per share

Year ending March
31, 2024
Year ending March
31, 2023(Reference) Equity in earnings of affiliates%

Net income attributable toowners of parent
Millions of yen%

Ordinary income

Year ending March 31, 2024 238 Millions of yen
Year ending March 31, 2023 △219 Millions of yen(2)Consolidated Financial Position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

Yen

19.5

596.9018.0

558.95

Cash flow from investing
activities
Millions of yen

Cash flow from financing
activities
Millions of yen

Cash and cash equivalents
Term end Balance
Millions of yen△26,329△15,464

41,884△46,354

61,53147,148Year ending March
337,447
71,66931, 2024
Year ending March
341,669
65,14231, 2023(Reference) Shareholders' equity Year ending March 31, 2024 65,717 Millions of yen
Year ending March 31, 2023 61,377 Millions of yen(3)Consolidated Cash Flows
Cash flow from operating
activities
Millions of yen
Year ending March
36,77731, 2024
Year ending March△722
31, 2023

Net assets per share%

2. Dividends
Annual Cash Dividends per Share
End offirst quarterEnd ofsecond quarterEnd ofthird quarter

Yen

Yen

Yen

Term end
Yen

Net assets
Total
Dividend
Dividends
dividends payout ratio
Ratio
Total
(Total) (Consolidated)(Consolidated)
Millions of
Yen
%
%
yen

Year ending March 31,
4.00
18.00
22.00
2,413
52.5
2023
Year ending March 31,
6.00
18.00
24.00
2,641
32.3
2024
Year ending March 31,
7.00
23.00
30.00
30.9
2025 (Forecast)(NOTE) Breakdown of Year ending March 31, 2023 Term end dividends Ordinary dividend 16 yen Commemorative dividend 2 yen

4.0
4.2

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 2025 (from April 1, 2024 to March 31, 2025)(Percentages indicate year-on-year changes.)
Net sales

Full year

Millions ofyen
205,700

Operating income%
11.1

Millions ofyen
17,000Net income attributable
Net income per shareto owners of parent
Millions of
%
%
Yen
yen
23.2
10,70030.8
97.19

Ordinary income%

10.0

Millions ofyen
16,000※ Notes items(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in the scope of consolidation): No
New : - (Company name:-) Excluded : - (Company name:-)(2)Changes in accounting policies and changes or restatement of accounting estimates①Changes in accounting policies due to revision of accounting standards: None②①Changes in accounting policies other than the above: None
③Changes in accounting estimates: None
④Restatement of revisions: None
(3)Issued shares count (Common stock)①Term end Issued shares counts (including Treasury
stock)②Number of Term end Treasury stock③Average number of shares during the period

Year ending
March 31, 2024
Year ending
March 31, 2024
Year ending
March 31, 2024

Year ending
March 31, 2023
Year ending
March 31, 2023
Year ending
March 31, 2023

121,000,000Shares
10,902,707Shares
109,938,968Shares

121,000,000Shares
11,192,607Shares
109,403,868Shares(Reference) Summary of Non-consolidated Financial Results
Non-consolidated Financial Results of Year ending March 31, 2024 (From April 1, 2023 to March 31, 2024)(1)Non-Consolidated Results of Operations(Percentages represent year-on-year changes.)
Net salesYear ending March
31, 2024
Year ending March
31, 2023

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

89,226

15.3

7,590

85.4

8,336

93.6

6,209

69.7

77,364

△13.0

4,093

△5.5

4,305

△44.4

3,659

△27.6

Net income per share

Year ending March
31, 2024
Year ending March
31, 2023

Diluted Net income per share

Yen

Yen

56.48

55.98

33.45

33.19

(2)Non-Consolidated Financial Position
Total assets
Year ending March
31, 2024
Year ending March
31, 2023(Reference)Shareholders' equity

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

148,678

56,86138.1

513.95

154,996

52,93734.0

480.08Year ending March 31, 2024 56,583 Millions of yen
Year ending March 31, 2023 52,716 Millions of yen<Reasons for difference in non-consolidated results from the results of the previous fiscal year >We have shifted to a holding company structure with October 1, 2022. In Current fiscal year, there is a difference between Previous fiscal year
and Current fiscal year's Actual due to the delivery of newly built condominiums that had already been contracted and a decline in Selling, generaland administrative expenses.
※This financial results report is outside the scope of Audit by Certified Public Accountant or an Audit corporation.
※ 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 materiallyfrom the forecast depending on a range of 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 Year Ended March 31, 2024

○Accompanying Materials – Contents

1.Overview of Operating Results and Financial Position

2(1)Overview of Operating Results for the Fiscal Year under Review

2(2)Overview of Financial Position for the Fiscal Year under Review

4(3)Overview of Cash Flows for the Fiscal Year under Review

4(4)Future Outlook5(5)Basic Policy on Profit Distribution and Dividends for the Current and Next Fiscal Years

5

2.Basic Approach to Selection of Accounting Standards

5

3.Consolidated Financial Statements and Supplementary Notes

6(1)Consolidated Balance Sheets

6(2)Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

8

Consolidated Statements of Income

8

Consolidated Statements of Comprehensive Income

9(3)Consolidated Statements of Changes in Shareholders' Equity

10(4)Consolidated Statements of Cash Flows

12(5)Notes to the Consolidated Financial Statements

13(Notes on Going Concern)

13(Notes to Consolidated Balance Sheets)

13(Notes to Consolidated Statements of Income)13(Rental and Other Real Estate-Related)

15(Segment Information, etc.)

15(Per Share Information)

19(Significant Subsequent Events)

19

4.Other

20

Status of Production, Orders and Sales

20

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MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Year Ended March 31, 2024

1.Overview of Operating Results and Financial Position(1)Overview of Operating Results for the Fiscal Year under Review
In Current Consolidated Fiscal Year, social activities normalized as a result of the shift to 5 new types of coronavirus infectious diseases,
and a gradual economic recovery was seen as Individuals consumption recovered and the employment/income situation improved. On theother hand, the outlook remains uncertain due to geopolitical risks, the impact of a rise in long-term interest rates in line with monetary policyin Europe and the United States, price increases in line with the yen's depreciation, and soaring energy resource prices resulting from tensions
in the Middle East. These factors warrant continued close attention.
In the business environment in the real estate industry to which our group belongs, in new condominiums for sale, although selling prices
are rising due to the impact of high raw material costs and other factors, the willingness to purchase is still strong among the actual demand
segment. As the number of single-person households and dual-income households continues to increase and values change, the lifestyles of end
users are diversifying, and demand for compact condominiums is on the rise in addition to needs for location and convenience of living.
Meanwhile, in regional core cities, due in part to the trend toward compact cities, demand remained high, particularly among active seniors,and sales of condominiums were firm.
According to a survey by the Real Estate Economic Institute, Units for supplying condominiums nationwide in 2023 was 65,075 units,
down 10.8% from the previous year. The annual supply of Units was below 70,000 units for the first time in 3 years, but the average
condominium price in 2023 was 59,110 thousand yen, an increase for the seventh consecutive year, and the highest level since the survey waslaunched in 1973.
Considering the trend in the cost of new condominiums, we believe that the market for new condominiums will continue to be in a relatively
favorable supply-demand balance. Against this backdrop, our Group ranked fifth nationwide in the 2023 Supply Units by Seller Group, and is
responsible for providing a stable supply in the real estate subdivision market.
In October 2023, we formulated a long-term vision for the fiscal year ending March 2030 to realize our Group-wide Purpose "To design
sustainable environments for a happier future for both people and our planet."
Be the Takara※ of the community.
What future does a real estate developer have.
Does power trained at the site become the value of the local community.
MIRARTH will reform themselves and provide answers for 2030.
We evolve our model by connecting flow type to a stock-circulating type.
We extend our domain by connecting real estate to cities, regions and the environment.
We redefine value by connecting real estate revenues to social value.
MIRARTH become a Takara-like presence for the local community by thoroughly learning "the unique characteristics" that are rooted ineach region, connecting the development of "points" with "lines," and promoting the revitalization of "faces."
Encourage the region, Japan and the world.
※Takara = treasure
In the formulation of this plan, the main target of the message is made up of employees. By doing so, we hope that the employees of ourgroup will continue to ask their questions and become a company that contributes to regional revitalization.
In addition, we have set up specific "indicators" to be implemented by 2030. By connecting the ideas of our long-term vision to Segment ofour group companies, we are playing a role in aligning and encouraging the direction of business growth and change.
In the future, based on this long-term vision, we will aim to create synergies that transcend the boundaries of the Group, such as "RealEstate Business," "Energy Business," and "Asset Management Business," by reflecting the ideals of each Group company up to 2030 in the
day-to-day operations of each company's Target and each employee, and to make the future of humans and the planet happy as a "futureenvironmental design company" that transcends the boundaries of a comprehensive real estate developer.
Current Consolidated Fiscal Year's results of operations are as follows: Net sales 185,194 Millions of yen (up 20.7% year on year),
operating income 15,457 Millions of yen (up 119.9% year on year), ordinary income 12,984 Millions of yen (up 158.0% year on year) and net
income attributable to owners of parent 8,178 Millions of yen (up 78.4% year on year).

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MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Year Ended March 31, 2024

①Results of Operations by Segment< Real Estate Business >Due to factors such as new condominiums, liquidation, new detached house sales, renewal and resale, real estate rental, real estate
management, and real estate Other, this business Net sales was 162,804 Millions of yen (up 17.0% year on year).
< Energy Business >Sales of power generation facilities in operation and sale of electricity from other power generation facilities. As a result, sales amounted
to 13,849 Millions of yen (up 53.1% year on year).
< Asset Management Business >Despite steady performance in management fees, the business Net sales was 734 Millions of yen (down 33.0% year on year) due to a
decline in acquisition fees for power generation Facilities following the conversion of Takara Leben Infrastructure Fund Inc. toConsolidated subsidiaries in End of Previous Consolidated Accounting Period.
< Other Businesses >Net sales for this segment was 7,805 Millions of yen (up 85.0% year on year) due to construction subcontracting, orders for large-scale
repair work, and revenues from various fees and commissions.
②Explanation by Item
< Net sales >In Real Estate Business segment, 162,804 Millions of yen consisted of 2,214 newly built condominiums (including JV' interests), sales ofincome-generating properties, sales of newly built detached houses, sales of pre-owned condominiums, rental income from apartments,
condominiums, offices, etc., and management income from 76,661 managed units.
Energy Business sales totaled 13,849 Millions of yen due to the revenue from electricity sales at power generation facilities and otherfactors.
Asset Management Business account is 734 Millions of yen due to management fees and other factors.
Other Businesses accounts for 7,805 Millions of yen due to construction subcontracting, large-scale repair work orders, and various fee
income.
Consequently, Current Consolidated Fiscal Year's Net sales was 185,194 Millions of yen, up 20.7% year on year.
< Cost of sales >This was 144,603 Millions of yen, up 18.8% from the same period of the previous fiscal year, mainly due to an increase in the delivery of
newly built condominiums.
< Selling, general and administrative expenses >Selling, general and administrative expenses increased 1.8% year on year to 25,133 Millions of yen due to aggressive investments inhuman capital and the building of a DX base.
<Non-operating income and expenses>
Non-operating income was 1,193 Millions of yen, up 18.4% year on year, mainly due to an increase in equity in Profit of affiliates
accounted for by the equity method.
Non-operating expenses was 3,666 Millions of yen, an increase of 22.0% year on year, mainly due to an increase in Interest expenses.
<Extraordinary income/losses>
Extraordinary income increased 10 Millions of yen year on year to 709 Millions of yen due to a gain on sale of Stocks of subsidiaries andaffiliates and other factors.
Extraordinary loss was 554 Millions of yen, up 347 Millions of yen year on year, mainly due to the recording of Impairment loss.
Consequently, Current Consolidated Fiscal Year's results of operations were as follows: Net sales 185,194 Millions of yen (up 20.7% year
on year), Operating income 15,457 Millions of yen (up 119.9% year on year), Ordinary income 12,984 Millions of yen (up 158.0% year onyear) and Net income attributable to owners of parent 8,178 Millions of yen (up 78.4% year on year).

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MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Year Ended March 31, 2024

(2)Overview of Financial Position for the Fiscal Year under Review
Assets, Liabilities and Net Assets of our Current Consolidated Fiscal Year has decreased Total assets by 4,221 Millions of yen to 337,447
Millions of yen from Previous Consolidated Accounting Period due to the delivery of newly built condominiums and the sale of incomegenerating properties.
< Current assets >Due to the transfer of business Assets to inventory Assets, etc., Current assets increased by 3,208 Millions of yen to 191,937 Millions of
yen from Previous Consolidated Accounting Period.
< Fixed assets >Despite the steady purchase of business Assets, Fixed assets decreased by 7,442 Millions of yen to 145,441 Millions of yen from
Previous Consolidated Accounting Period due to the transfer to inventory Assets and other factors.
< Current liabilities >Due to the repayment of Short-term borrowings and other factors, Current liabilities decreased by 39,620 Millions of yen to 122,537
Millions of yen from Previous Consolidated Accounting Period.
< Fixed liabilities >Due to the increase in Long-term loans payable associated with new purchases and other factors, fixed liabilities increased by 28,871
Millions of yen to 143,240 Millions of yen from Previous Consolidated Accounting Period.
< Net assets >Total of Net assets has increased by 6,526 Millions of yen to 71,669 Millions of yen from Previous Consolidated Accounting Period,
respectively, due to the amount of Net income attributable to owners of parent booked exceeding Dividend of surplus, etc.
(3)Overview of Cash Flows for the Fiscal Year under Review
Cash and cash equivalents ("Funds") in End of the consolidated financial year decreased by 5,263 Millions of yen to 41,884 Millions of yen
compared to End of End of Previous Consolidated Accounting Period.
< Cash flow from operating activities >The increase in net cash provided by operating activities was 36,777 Millions of yen (a decrease of 722 Millions of yen for End ofPrevious Consolidated Accounting Period). This was mainly due to a decline in inventory Assets.
< Cash flow from investing activities >The decrease in net cash used in investing activities was 26,329 Millions of yen (a decrease of 46,354 Millions of yen for End ofPrevious Consolidated Accounting Period). This was mainly due to Purchase of Property, plant and equipment.
< Cash flow from financing activities >The decrease in net cash used in financing activities was 15,464 Millions of yen (an increase of 61,531 Millions of yen for End ofPrevious Consolidated Accounting Period). This was mainly due to the repayment of borrowings.

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MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Year Ended March 31, 2024

(Reference) Trends in cash flow-related indicators
Year ending March 31,

Year ending March 31,

Year ending March 31,

2022

2023

2024

Equity ratio (%)

26.5

18.0

19.5

Market value based Equity ratio (%)

14.6

12.1

16.8

Debt amortization schedule (number of years)

5.5

-

5.7

Interest coverage ratio (times)

13.1

-

13.6

Equity ratio: Shareholders' equity/Total assets
Market value based Equity ratio: Equity securities market capitalization/Total assets
Debt redemption period: Interest-bearing Liabilities/Operating cash flow
Interest coverage ratio = operating cash flow / interest expenses※All figures are calculated on a consolidated basis.
※The interest-bearing debt refers to the debts posted in the consolidated balance sheets for which we are paying interests.
※ "Debt redemption period (years)" and "Interest coverage ratio (times)" of Year ending March 31, 2023 are not stated because ofnegative operating cash flow.
(4)Future Outlook
Consolidated earnings forecasts for the fiscal year ending March 2025 are estimated as follows.
In Real Estate Business, we are actively promoting the provision of new condominiums, which are our core business, not only in the Tokyo
metropolitan area but also in central urban areas in rural areas. We anticipate the delivery of 2,200 units (our share of 2,150 units after the pro
rata JV), and the contract progress rate is robust at 61.5%.
In Energy Business, we aim to expand our business by promoting onshore wind power and biomass, including solar power.
In Asset Management Business, we aim to accumulate Assets under management and increase management fees through group synergies
and acquiring properties from third parties.
As a result of the above, the Company expects to make the following forecasts for the next fiscal year.
Net sales

205,700 Millions of yen (up 11.1% year on year)

Operating income

17,000 Millions of yen (up 10.0% year on year)

Ordinary income

16,000 Millions of yen (up 23.2% year on year)

Net income attributable to owners of parent

10,700 Millions of yen (up 30.8% year on year)(Contracts with Units to be delivered in the new condominium business, including JV Units)
Year ending March
31, 2025
Number of units to

From the year ending March
Number of units

be delivered (units)
As of the end of March 2024

31, 2026
Number of contracts (units)
to be delivered

2,200

1,353

148

Total
subscribers(units)1,501(5)Basic Policy on Profit Distribution and Dividends for the Current and Next Fiscal Years
Our new medium-term management plan formulated in May 2021 calls for Dividend payout ratio to be in the range of 30% to 35%.
For the fiscal year under review, we plan to pay a Term end dividend of 18 yen per share in 1 Shares Per share. Combined with End of
second quarter dividends paid, 1 Shares Per share's Annual Cash Dividends per Share is 24 yen. The resulting Dividend payout ratio is 32.3%.
For dividends for the next fiscal year, we will return 30% to 35% in accordance with Dividend payout ratio announced on May 14, 2021, aspart of our new medium-term management plan.

2.Basic Approach to Selection of Accounting Standards
In order to ensure Comparison potential with other companies in the same industry in Japan, we have adopted Japanese accounting standards.

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MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Year Ended March 31, 2024

3.Consolidated Financial Statements and Supplementary Notes(1)Consolidated Balance Sheets(Millions of yen)Previous Consolidated Fiscal Year
(March 31,2023)
AssetsCurrent assets
Cash and deposits
Notes, accounts receivable-trade and contract assets
Real estate for sale
Power generation facilities for sale
Real estate for sale in progress
Costs incurred on uncompleted contracts
Other
Allowance for doubtful accounts

47,872
3,477
34,147
3,375
82,713017,415

Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures (net)
Machinery and equipment
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture, and fixtures, net
Land
Leased assets
Accumulated depreciation

Current Consolidated Fiscal Year
(March 31,2024)

42,7408,335
47,381
65
76,59840
17,053△275△277

188,728

191,937

33,98433,724△5,104△5,96928,87927,75557,09663,287△8,390△10,834

48,70552,453

1,126

1,265

△811

△966

315

299

41,394345

33,759
345

△86

△118

Lease assets, net

258

226

Construction in progress

5,808

3,264

125,362

117,759

3,918
4,457

3,420
4,643

Total property, plant and equipment
Intangible assets
Goodwill
Other

8,376

8,063

Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts

Total intangible assets

2,368
830
4,744
11,205

2,597
200
4,258
12,563△2△0Total investments and other assets

19,145

19,619152,884

145,441

Total fixed assets
Deferred assets
Total assets

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56

68

341,669

337,447

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Year Ended March 31, 2024

(Millions of yen)Previous Consolidated Fiscal Year
(March 31,2023)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of bonds payable
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Advances received
Bonus Allowance
Compensation for completed construction Allowance
Other
Total current liabilities
Fixed liabilities
Long-term loans payable
Bonds payable
Lease obligations
Directors' and corporate auditors' retirement benefits
Allowance
Liabilities related to retirement benefits
Asset retirement obligations
Deferred tax liabilities
Other
Total Fixed liabilities

Current Consolidated Fiscal Year
(March 31,2024)

16,342
92,069190
25,99734
4,318
10,197699
551
11,755

27,11925,621
2,806
44,102
34
3,571
9,167
850
614
8,648

162,157

122,537

104,8284,015
249

130,673
7,008
214

135

100

1,100
182
2,509
1,348

1,314
200
2,489
1,239

114,369

143,240

276,527

265,778

4,819
4,820
55,971

4,819
3,375
61,514△4,174△4,06661,436

65,643

Accumulated other comprehensive income
Net unrealized gains on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans

△71
3
8

△36
△17

Total accumulated other comprehensive income

△59

73

220
3,544

277
5,674

Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity

Subscription rights to shares
Non-controlling interest
Total net assets
Total liabilities and net assets

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127

65,142

71,669341,669

337,447

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Year Ended March 31, 2024

(2)Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)Previous Consolidated Fiscal Year
(April 1, 2022 to March 31, 2023)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Commission received
Income from insurance claim
Gain from equity method investment
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Losses from equity method investment
Arrangement fee
Miscellaneous expenses
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on subsequent acquisitions
Gain on sales of Fixed assets
Gain on sales of investment securities
Gain on sales of stock of affiliates
Total extraordinary income
Extraordinary loss
Loss on sales of Fixed assets
Impairment loss
Office relocation expenses
Loss on sales of shares of associated company
Extraordinary losses Total

Current Consolidated Fiscal Year
(April 1, 2023 to March 31, 2024)

153,472

185,194※1 121,763※1 144,603

31,70840,590※2 24,677※2 25,133

7,030

15,457

28
233
108
38
599

34
174
122
228
238
395

1,008

1,193

2,080
219
165
540

2,795
646
223

3,005

3,666

5,033

12,984

601
97
-

145
563

698

709

132

-

※3 48

※3 508

26
-

31
14

206

554

Income before income taxes and minority interests from silent
partnerships

5,525

13,139Distribution of loss in partnership

△178

147

Income before income taxes

5,703

12,991

Income taxes, inhabitant taxes and business taxes
Income tax adjustments

4,708△3,451

4,470
244

Total income and other taxes

1,257

4,714

Net income

4,445

8,276

Net income (loss) (△) attributable to non-controlling interests

△138

98

Net income attributable to owners of parent

4,584

8,178

-8-

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Year Ended March 31, 2024

(Consolidated Statements of Comprehensive Income)(Millions of yen)Previous Consolidated Fiscal Year
(April 1, 2022 to March 31, 2023)

Current Consolidated Fiscal Year
(April 1, 2023 to March 31, 2024)

4,445

8,276

△619
3
23

△40
△25

Net income
Other comprehensive income
Net unrealized gains on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans

198

△593

133

Comprehensive income

3,852

8,409

(Comprising)Comprehensive profit attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

3,990
△138

8,311
98

Total other comprehensive income-9-MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Year Ended March 31, 2024
(3)Consolidated Statements of Changes in Shareholders' Equity
Previous Consolidated Fiscal Year (April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders' equity
Capital stock
Balance at the beginning of theperiodCapital surplus

4,819

Retained earnings

4,817

Treasury stock

Total shareholders'equity△4,45653,39558,575

Change during the year
△1,963△1,963

Net income attributable toowners of parent

4,584

4,584

Change due to newconsolidation

△44

△44

Dividend of surplus

Disposal of Treasury stock

3

282

285

Net changes of items otherthan Shareholders' equity
Total changes of items during
the periodTerm end Balance

-

3

2,575

282

2,860

4,819

4,820

55,971△4,17461,436

Accumulated other comprehensive incomeNet
unrealized
gains onavailable-forsale securities
Balance at the beginning of theperiod548

Foreigncurrencytranslation
Adjustment
account

Remeasurements ofdefinedbenefit plans△140

For Other
Subscription Non-controlling
Total net assets
Comprehensi rights to sharesinterest
ve incomeAccumulated
Total
534

197

294

59,601

Change during the year
△1,963

Dividend of surplus
Net income attributable toowners of parent

4,584

Change due to newconsolidation△44

Disposal of Treasury stock285

Net changes of items otherthan Shareholders' equity

△619

3

23

△593

22

3,250

2,680

Total changes of items during
the period

△619

3

23

△593

22

3,250

5,540

Term end Balance

△71

3

8

△59

220

3,544

65,142- 10 -

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Year Ended March 31, 2024

Current Consolidated Fiscal Year (April 1, 2023 to March 31, 2024)(Millions of yen)
Shareholders' equity
Capital stock
Balance at the beginning of theperiodCapital surplus

4,819

Retained earnings

4,820

Treasury stock

Total shareholders'equity△4,17455,971

61,436

Change during the year
Dividend of surplus
Net income attributable toowners of parent
Change due to exclusionfrom consolidation
Increase (decrease) in equity
due to capital increase ofConsolidated subsidiaries
Change in treasury shares ofparent arising fromtransactions with noncontrolling interests
Disposal of Treasury stock△2,635△2,635

8,178

8,178

1

1

△1,301△1,301

△174

△174

31

108

140

Net changes of items otherthan Shareholders' equity
Total changes of items during
the periodTerm end Balance-△1,444

5,543

108

4,207

4,819

3,375

61,514△4,066

65,643

Accumulated other comprehensive income

Balance at the beginning of theperiodNet
unrealized
gains onavailable-forsale securities

Foreigncurrencytranslation
adjustments△71

3

Remeasurements ofdefinedbenefit plans
8

Othercomprehensiv Subscription Non-controlling Total net assets
rights to sharesinterest
e income
Accumulated
Total
△59

220

3,544

65,142

Change during the year
△2,635

Dividend of surplus
Net income attributable toowners of parent

8,178

Change due to exclusionfrom consolidation
Increase (decrease) in equity
due to capital increase ofConsolidated subsidiaries
Change in treasury shares ofparent arising fromtransactions with noncontrolling interests1△1,301△174

Disposal of Treasury stock140

Net changes of items otherthan Shareholders' equity

198

△40

△25

133

56

2,129

2,319

Total changes of items during
the period

198

△40

△25

133

56

2,129

6,526

Term end Balance

127

△36

△17

73

277

5,674

71,669- 11 -

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Year Ended March 31, 2024
(4)Consolidated Statements of Cash Flows(Millions of yen)Previous Consolidated Fiscal Year
(April 1, 2022 to March 31, 2023)
Cash flow from operating activities
Income before income taxes
Depreciation and amortization
Impairment loss
Goodwill depreciation
Increase (decrease) in Allowance (decrease in △)Increase (decrease) in Liabilities related to retirement benefits(decrease in △)Interest income and Dividend income
Charges for stock compensation
Interest expenses
Decrease (increase) in notes and accounts receivable-trade (increasein △)Decrease (increase) in inventories (increase in △)Increase (decrease) in notes and accounts payable-trade (decreasein △)Increase (decrease) in advances received (decrease in △)Other
SubtotalInterest and dividend received
Interest expenses paid
Income taxes paid
Cash flow from operating activities
Cash flow from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of Property, plant and equipment
Proceeds from sale of Property, plant and equipment
Purchase of Intangible assets
Purchase of stocks of subsidiaries and affiliates
Payments for long-term loans
Proceeds from collection of Long-term loans receivable
Purchase of investment securities
Proceeds from sale of investment securities
Purchases of subsidiary stock due to changes in the scope of
consolidation
Proceeds from sales of Investments in subsidiaries resulting inchange in scope of consolidation
Other
Cash flow from investing activities
Cash flow from financing activities
Net change in Short-term borrowings (decrease in △)Proceeds from long-term debt
Repayment of Long-term loans payable
Proceeds from issuance of common Bonds payable
Payments for redemption of Bonds payable
Repayments of lease obligations
Payments for reimbursement to non-controlling interests
Proceeds from share issuance to non-controlling shareholders
Cash dividends paid
Dividends paid to non-controlling interests

Current Consolidated Fiscal Year
(April 1, 2023 to March 31, 2024)

5,703
3,020
48
390
99

12,991
5,370
508
509
179

141

174

△262
327
2,080

△209
196
2,795

△65

△4,892△10,50915,692758

10,934

2,848△741△1,029
1,736

3,839

44,957256

192△2,109△2,709△2,695△5,676△722

36,777

△14
150

△35
-

△19,349
1,933△25,589
1,271

△189
△450
-

△1,895△604
380△1,628253△00△26,941

△518

-

445

△117

215

△46,354△26,329

74,78397,853△67,503124,207△106,935
150△75,498
5,745△2,183
△35
-

△190
△34
△4,768
5,761△1,962△140△3,161△22

61,531△15,464

Increase (decrease) in cash and cash equivalents (decrease in △)14,454△5,017

Cash and cash equivalents at beginning of term
Decrease in Cash and cash equivalents due to exclusion of subsidiaries
from consolidation

32,69347,148-△246

Cash and cash equivalents's Term end Balance

47,14841,884

Cash flow from financing activities- 12 -

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Year Ended March 31, 2024

(5)Notes to the Consolidated Financial Statements(Notes on Going Concern)
Not applicable.
(Notes to Consolidated Balance Sheets)
In order to raise working capital efficiently, we have entered into overdraft and loan commitment contracts with 63 financial institutions (68End of Previous Consolidated Accounting Period). Balance of undisbursed borrowings at the end of the consolidated fiscal year under thesecontracts are as follows:
Previous Consolidated Fiscal Year
(March 31, 2023)
Maximum overdraft amount and loans Commitments

85,033 Millions of yen

Total amount
Loan balance
Net amountCurrent Consolidated Fiscal Year
(March 31,2024)
84,333 Millions of yen

51,10553,89433,92830,439(Notes to Consolidated Statements of Income)※1 Term end Inventory is the amount after writing down the book value due to a decline in profitability, and the following loss on valuation of
inventory Assets is included in Cost of sales.
Previous Consolidated Fiscal Year
(April 1, 2022 to March 31, 2023)

Current Consolidated Fiscal Year
(April 1, 2023 to March 31, 2024)△1,032 Millions of yen

16 Millions of yen※2 The approximate percentages of expenses in selling expenses are End of Previous Consolidated Accounting Period 34%, Current
Consolidated Fiscal Year 34%, and the approximate percentages of expenses in general and administrative expenses are End of Previous
Consolidated Accounting Period 66% and Current Consolidated Fiscal Year 66%.
Major items and amounts of Selling, general and administrative expenses are as follows.
Previous Consolidated Fiscal Year
(April 1, 2022 to March 31, 2023)

Current Consolidated Fiscal Year
(April 1, 2023 to March 31, 2024)

Advertising expenses

5,352 Millions of yen

5,336 Millions of yen

Promotion expenses

2,218

2,398

Salary allowance

4,333

4,536

Bonus Allowance provision

915

1,082

Retirement benefit expenses

186

213

Provision for Allowance of directors' retirement benefits

27

26

Allowance for doubtful accounts provision-1- 13 -

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Year Ended March 31, 2024

※3 Impairment loss
Previous Consolidated Fiscal Year (April 1, 2022 to March 31, 2023)
Our group recorded Impairment loss (48 Millions of yen) for the following Assets or Assets group in Current Consolidated Fiscal Yeardue to the decrease in profitability of Hotel, etc.
Application
Hotel

Type
Land and structures

Location

Amount (Millions of yen)

Nakagyo-ku, Kyoto

48

Total

48

The breakdown by account title is Land 24 Millions of yen, Buildings 24 Millions of yen.
Our group groups hotels on an individual property basis.
The recoverable amount is measured based on the net selling price. The net selling price is based on the appraisal value, etc. by a realestate appraiser.
Current Consolidated Fiscal Year (April 1, 2023 to March 31, 2024)
Our group recorded Impairment loss (508 Millions of yen) for the following Assets or Assets group in Current Consolidated Fiscal Yeardue to a decline in the profitability of rental properties, power generation Facilities and Hotel, etc.
Application
Rental real estatePower generation
Facilities

Type

Location

Amount (Millions of yen)Land

Matsuyama City, Ehime

39

Machinery and equipment

Kayabe-gun, Hokkaido

13

Land

Kyoto city, Kyoto

408

Land

Kyoto city, Kyoto

46

Hotel

Total

508

The breakdown by account title is Land 494 Millions of yen and Machinery and equipment 13 Millions of yen.
We group rental properties, power generation Facilities and Hotel on a property-by-property basis.
The recoverable amount is measured based on the net selling price. The net selling price is based on the appraisal value, etc. by a realestate appraiser of rental properties and Hotel In addition, the recoverable amount of power generation Facilities is measured at value in use,
and the recoverable amount is evaluated as zero because future cash flows are expected to be negative.

- 14 -

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Year Ended March 31, 2024

(Rental and Other Real Estate-Related)
We and certain consolidated subsidiaries have office buildings (including Land) for lease and condominiums for lease in For Other area ofTokyo. Rental income (loss) related to such rental properties in End of Previous Consolidated Accounting Period is 259 Millions of yen (rental
income is recorded in Net sales and major rental expenses are recorded in Cost of sales). Rental income (loss) related to such rental properties in
Current Consolidated Fiscal Year is 151 Millions of yen (rental income is recorded in Net sales and major rental expenses are recorded in Costof sales).
In addition, the amounts reported on the consolidated balance sheets, the changes during the period, and the fair value of the rental properties
are as follows.
(Millions of yen)Previous Consolidated Accounting Period(April 1, 2022 to March 31, 2023)

Current Consolidated Fiscal Year
(April 1, 2023 to March 31, 2024)

Carrying amount
Beginning Balance

38,80535,714

Changes during the year

△3,091△4,668Term end Balance

35,71431,04537,25436,080Term end Market Value(NOTE) 1. Carrying amount is Acquisition cost less accumulated depreciation and Impairment loss.
2. Changes during the year, the main increases in End of Previous Consolidated Accounting Period were real estate acquisitions(12,097 Millions of yen) and Application changes to rental properties (38 Millions of yen), while the main decreases were transfers
to Real estate for sale and Real estate for sale in progress (14,364 Millions of yen) and Depreciation and amortization (316 Millionsof yen). The primary increase in Current Consolidated Fiscal Year was real estate acquisitions (11,659 Millions of yen) and theprimary decrease was transfers to Real estate for sale and Real estate for sale in progress (17,010 Millions of yen) and Depreciation
and amortization (303 Millions of yen).
3. The fair value of Term end is based on the appraisal value by an outside real estate appraiser.
4. Assets under construction are not included in the above table because it is extremely difficult to determine. End of Previous
Consolidated Accounting Period and Current Consolidated Fiscal Year's Carrying amount under construction are 3,020 Millions of
yen and 2,165 Millions of yen, respectively.
(Segment Information, etc.)
a. Segment information
1. Reportable segments at a Glance
Reportable segments of the Group are components of the Group for which discrete financial data is available and regularly reviewed
by Board of Directors to make decisions about resource allocation and assess performance.
Our group conducts business activities mainly on condominium sales. "Real Estate Business," "Energy Business," and "AssetManagement Business" are referred to as Reportable segments.
Real Estate Business is engaged in the core business of selling new condominiums, as well as new detached houses, renovation andresale of condominiums, the liquidation business, which sells income-generating properties such as residential properties and offices, thereal estate rental business, and the real estate management business.
Energy Business sells electricity generated from solar and other wind, biomass and other renewable energy to electric powercompanies to generate stable revenues.
Asset Management Business utilizes our extensive expertise, know-how, and network accumulated in real estate and renewable energy
to manage J-REIT and private funds and provide excellent investment-opportunities and solid Assets administration services.
2. Methods of calculating the amount of Net sales, Profit or loss, Assets, and Liabilities Items in Other for each Reportable segments
The accounting methods used for Report of business Segment are generally the same as the accounting Policy used for the preparationof consolidated financial statements, except for the valuation standards for inventory Assets.
Inventories are valued at book value after devaluation based on a decline in profitability.
Reportable segments earnings are Operating income based figures.
Intersegment revenues and transfers are based on prevailing market prices.

- 15 -

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Year Ended March 31, 2024

3. Information on the amount of Net sales, Profit or loss, Assets, and Liabilities Items in Other for each Reportable segments, as well as
information on the breakdown of revenue
Previous Consolidated Accounting Period (April 1, 2022 to March 31, 2023)(Millions of yen)
Reportable segments
Other(NOTE)

Total

Real EstateBusiness

EnergyBusiness

Asset
Management
Business

133,291

9,045

1,096

143,434

4,219

147,653

5,819

-

-

5,819

-

5,819

139,110

9,045

1,096

149,253

4,219

153,472

-

-

-

-

-

-

139,110

9,045

1,096

149,253

4,219

153,472

7,906

△956

322

7,271

△241

7,030

Segment assets

181,226

120,820

2,052

304,099

5,373

309,473

Segment liabilities

161,822

111,390288

273,501

3,974

277,476

Depreciation and amortization

362

2,183

7

2,553

86

2,639

Amortization of goodwill

78

-

-

78

-

78

Interest expenses

1,256

683

0

1,939

11

1,951

Increased amount of Property, plant andequipment and Intangible assets

16,95752,4852

69,44596

69,542Total

Net sales
Revenue arising from contracts withcustomers
Other revenue
Net sales to customers
Intersegment net sales or transfers
Total
Segment income (loss) (△)

Items in Other(NOTE)"Other" Category is a business Segment not included in Reportable segments and includes construction subcontracting and repair
work.

- 16 -

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Year Ended March 31, 2024

Current Consolidated Fiscal Year (April 1, 2023 to March 31, 2024)(Millions of yen)
Reportable segments
Other(NOTE)

Total

Real EstateBusiness

EnergyBusiness

Asset
Management
Business

156,933

13,849734

171,517

7,805

179,322

5,871

-

-

5,871

-

5,871

162,804

13,849734

177,388

7,805

185,194

-

-

-

-

-

-

162,804

13,849734

177,388

7,805

185,194

Segment income (loss) (△)

13,7902,026△34

15,782△325

15,457

Segment assets

178,033

113,998935

292,967

7,264

300,232

Segment liabilities

157,048

117,604

110

274,763

3,562

278,325

Depreciation and amortization

344

4,585

5

4,935

84

5,020

Amortization of goodwill

78

-

-

78

-

78

Interest expenses

1,315

1,544

0

2,860

2

2,862

Increased amount of Property, plant andequipment and Intangible assets

16,32022,960039,281

1,231

40,513Total

Net sales
Revenue arising from contracts withcustomers
Other revenue
Net sales to customers
Intersegment Net sales
Or the amount transferred
Total

Items in Other(NOTE)"Other" Category is a business Segment not included in Reportable segments and includes businesses such as construction and Hotel
operations.

- 17 -

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Year Ended March 31, 2024
4. Major Details of Difference and Difference between Reportable segments Total and Carrying value (items related to reconciliation ofdifferences)(Millions of yen)
Net sales

Previous Consolidated Accounting Period

Reportable segments Total
Net sales of Category in Other
Elimination of inter-segment transactions
Net sales of Consolidated Financial Statements

Current Consolidated Fiscal Year

149,253

177,388

4,219

7,805

-

-

153,472

185,194(Millions of yen)

ProfitPrevious Consolidated Accounting Period

Current Consolidated Fiscal Year

Reportable segments Total

7,271

15,782

Benefits of Other's Category

△241

△325

Elimination of inter-segment transactions--

Amortization of goodwill

-

-

7,030

15,457

Operating income of Consolidated Financial Statements(Millions of yen)
AssetsPrevious Consolidated Accounting Period

Current Consolidated Fiscal Year

Reportable segments Total

304,099

292,967

Other's Category property

5,373

7,264

△97,348△62,756

129,544

99,971

341,669

337,447

Offset and Elimination of Obligations to Administration
Divisions of Head Office
Corporate assets (Note)
Total assets of Consolidated Financial Statements(NOTE)Corporate assets are assets not attributable to Reportable segments. Major items include assets related to Cash and deposits andAdministration Divisions and deferred tax assets.
(Millions of yen)
Liabilities

Previous Consolidated Accounting Period

Reportable segments Total
Other's Category Debt
Offset and Elimination of Obligations to Administration
Divisions of Head Office
Corporate liabilities (Note)
Total liabilities of Consolidated Financial Statements

Current Consolidated Fiscal Year273,501

274,763

3,974

3,562

△44,814△44,596

43,86432,049276,527

265,778(NOTE)Corporate Liabilities is a Liabilities that is not attributable to Reportable segments. The main item is loans payable, etc.
(Millions of yen)
Reportable segments Total
Items in Other

Depreciation and amortization
Amortization of goodwill
Interest expenses

Other

Adjusted amount

Carrying value

This
This
This
This
Previous
Previous
Previous
Previous
consolidated
consolidated
consolidated
consolidated
consolidated
consolidated
consolidated
consolidated
company
company
company
company
Fiscal year
Fiscal year
Fiscal year
Fiscal year
Fiscal year
Fiscal year
Fiscal year
Fiscal year
2,553

4,935

86

84

380

350

3,020

5,370

78

78

-

-

311

430

390

509

1,939

2,860

11

2

129

△66

2,080

2,795

69,44539,28196

1,231△48,704△13,871

20,837

26,641

Property, plant and equipment
and intangibles Increased
Fixed assets (Note)(NOTE) Adjustments to increase in Property, plant and equipment and Intangible assets represent accruals for Goodwill not allocated toReportable segments, capital expenditures for head office buildings, etc., and elimination of inter-segment transactions.

- 18 -

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Year Ended March 31, 2024

b. Information regarding impairment losses on fixed assets by report item
Previous Consolidated Accounting Period (April 1, 2022 to March 31, 2023)(Millions of yen)
Real Estate Business Energy BusinessImpairment loss-

Asset Management
Business-

Corporate andeliminations

Others (Note)

-

48

Total
-

48

(NOTE)The amount of "Other" is related to Hotel business.
Current Consolidated Fiscal Year (From April 1, 2023 to March 31, 2024)(Millions of yen)
Real Estate Business Energy BusinessImpairment loss

39

Asset Management
Business

13

Corporate andeliminations

Others (Note)

-

455

Total
-

508

(NOTE)The amount of "Other" is related to Hotel business.
(Per Share Information)
Previous Consolidated Accounting Period(From April 1, 2022 to 31 March, 2023)

Current Consolidated Fiscal Year
(From April 1, 2023 to March 31, 2024)

Net assets per share

558.95 yen

596.90 yen

Net income per share

41.90 yen

74.39 yen

Diluted Net income per share

41.58 yen

73.72 yen

(NOTE)The basis for calculation of Net income per share and Diluted Net income per share is as follows.
Previous Consolidated
Accounting Period(From April 1, 2022 to March
31, 2023)

Current Consolidated Fiscal
Year(From April 1, 2023 to March
31, 2024)

Net income per share
Net income attributable to owners of parent(Millions of yen)

4,584

8,178

Net income not applicable to common shareholders(Millions of yen)--

(Millions of yen)

4,584

8,178

109,403109,938

-

-

852

990

(852)

(990)

Net income attributable to owners of parent related to Common
stock
Average number of shares during the period(Thousands ofShares)Diluted Net income per share
Net income attributable to owners of parent Adjustments
Common stock growth(Millions of yen)(Thousands ofShares)(Subscription rights to shares (Thousands of Shares))
Summary of dilutive shares not included in the calculation of diluted Net income pershare because they have no dilutive effect(Significant Subsequent Events)
Not applicable.

- 19 ---

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Year Ended March 31, 2024

4. Other
Status of Production, Orders and Sales①Units under contract during the period

Segment name

Previous Consolidated fiscal year
(From April 1, 2022 to March 31, 2023)

Current Consolidated Fiscal Year
(From April 1, 2023 to March 31, 2024)

Amount (Millions ofyen)Amount (Millions of
yen)

Units

Units

Year on year (%)

Real Estate Business

2,666

144,9422,513

134,283

92.6

Total

2,666

144,9422,513

134,283

92.6②Contract Balance

Segment name

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

Amount (Millions ofyen)

End of the consolidated financial year
(as of March 31, 2024)
Units

Year on year (%)

Amount (Millions ofyen)Real Estate Business

1,756

83,122

1,554

71,979

86.6

Total

1,756

83,122

1,554

71,97986.6③Status of Net sales
Current Consolidated Fiscal Year
(From April 1, 2023 to March 31, 2024)

Segment nameReal Estate Business

Energy Business

Asset Management Business

Reportable segments Total(Millions ofyen)(Millions ofyen)(Millions ofyen)(Millions ofyen)(Millions of

Other

yen)
Combined Total(Millions ofyen)(NOTE) Transactions between segment are offset and eliminated.

- 20 -

Year on year (%)

162,804

117.0

13,849

153.1

734

67.0

177,388

118.9

7,805

185.0

185,194120.7