Second Quarter of Fiscal Year Ending March 2024 Financial Results Briefing

MIRARTH HOLDINGS, Inc.

Securities Code: 8897 November 9, 2023

Executive Summary Year ending March 31, 2024 Second quarter's consolidated results were Net sales 59,179 Millions of yen (△19.5% YoY), Operating income 2,370 Millions of yen (△ 45.2% YoY), Ordinary income 1,382 Millions of yen (△63.7% YoY), and Net income attributable to owners of parent 87 Millions of yen (△ 97.0% YoY), showing
declines in both sales and profits. In the New built-for-sale condominium, sales are expected to be weighted in thesecond half of the fiscal year as Units of completed condominiums is weighted toward the second half of the fiscal
year. However, the contract progress rate is 91.9% and the progress rate of the expected Gross profit for existing
contracts is 96.7%.
 In order to realize management that is conscious of capital costs and stock prices, our Group aims to achievesustainable growth and increase corporate value over the medium to long term by realizing Sustainability
management based on a trinity strategy of “Implementing purpose management," “Reforming the growth
structure," and “Promoting ESG management." As part of Energy Business‘s medium to long term strategy, in addition to solar power generation, we will
diversify our wind power generation, biomass power generation, and other power generation sources toaccumulate 420MW by the fiscal year ending March 31, 2030. For Non-FIT PPA business (on-site/off-site), weare targeting in the unit price of electricity sales of more than 14 yen/kWh and project IRR more than 6.0% ascommercialization targets.
Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

2

INDEX
01 Second Quarter of Fiscal Year Ending March 2024 Financial Highlights

P. 4

and Earnings Forecast
02 Enhancing Corporate Value / Shareholder Returns

P. 16

03 Medium to Long Term Strategies for Energy Business

P. 23

04 Sustainability

P. 29

05 Appendix

P. 33

01
Second Quarter of Fiscal Year Ending March 2024
Financial Highlights and Earnings Forecast

Year Ending March 31, 2024 Second Quarter Consolidated Statements of Income

Second Quarter of Year
Second Quarter ofEnding March 2024
Year Ending March
Actual2023 Actual

YoY ChangeYear Ending
March 31, 2024
Full Year Forecast

Progress Rate

(Millions of yen)

Net sales

73,471

59,179

Cost of sales

58,32845,391Gross profit

15,143

13,787

Selling, general andadministrative expenses

10,814

11,417

Operating income

4,328

2,370

Ordinary income

3,810

1,382

Net income attributable toowners of parent

2,875

87

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

△19.5%

188,71031.4%△22.2%

149,710

30.3%

△9.0%

39,000

35.4%

5.6%

25,30045.1%△45.2%

13,70017.3%

12,70010.9%△97.0%

8,500

1.0%

△63.7%

5

Year Ending March 31, 2024 Second Quarter Net Sales & Gross Profit & Operating Income
by Segment

Second Quarter ofSecond Quarter of Year
Year Ending March
Ending March 2023
2024 Actual
Actual(Millions of yen)

Real Estate Business

Energy Business

Other Businesses

Progress Rate

165,550

30.4%

33,370

34.2%

1,396

△20.3%

10,440

13.4%

5,026

5,682

△70.5%

13.1%

13,790

41.2%

345

2,066

497.8%

4,520

45.7%

1,061

-

3,050

34.8%

Net sales

△484
638

276

820

33.7%

Gross profit

575

218

△56.7%

610

35.9%

Operating income

292

△83

△62.0%-

10-

66,39450,340Gross profit

14,312

11,407

Operating income

4,726

Net sales
Gross profit

Net sales

1,411

2,879

104.0%

8,550

33.7%

Gross profit

△90

95

-

500

19.0%

△4

-

200

-

△19.5%

188,71031.4%

39,00035.4%△45.2%

13,70017.3%

Operating income
Total

YoY Change△24.2%Net sales

Operating income
Asset Management
BusinessYear Ending
March 31, 2024
Full Year Forecast

Net sales△206

73,471

59,179Gross profit

15,143

13,787

Operating income

4,328

2,370

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

△9.0%

6

Year Ending March 31, 2024 Second Quarter Selling, General and Administrative Expenses(YoY Change)
Increased by 602 Millions of yen compared to the same quarter of the previous year and recorded
11,417 Millions of yen at Year ending March 31, 2024 Second quarter
5
3
2

4

245
1• Decrease in public relations expenses
due to end of 50th anniversary
branding

217

245
1

80
24,677△77△109

11,417

10,8142• Increase in personnel expenses due toincrease in base pay to employees andincrease in personnel
3• Result from the normalization ofbusiness activities increase in expenses
4• Increase in DX investment
5• Recording of expenses due toconversion to Consolidated
subsidiaries in accordance with theimplementation of TOB(Millions of yen)
Year ended
March 31,2023
Second quarter

PublicRelations
expenses

Advertising
Sales commission
expenses, etc.
(Liquidation)(Sale of properties)

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Personnel
expenses

Other(including
DX outlays)

TOB relatedYear ending
March 31,2024
Second quarter

7

Year Ending March 31, 2024 Second Quarter Consolidated Balance Sheet
Total assets increased by 12,212 Millions of yen from the end of the previous fiscal year due to anincrease in inventories due to new purchases
Borrowings also increased
End of March 2023

(Millions of yen)

End of September 2023

YoY Change

341,669

353,882

12,212

188,728

205,155

16,426

Cash and deposits

47,872

38,255Inventory Assets

120,236

143,086

Real estate for sale

34,14732,160△9,617

Power generation facilities for sale

3,375

2,998

Real estate for sale in progress

82,713

107,928

152,884

148,680

276,527

293,584

162,157

179,646

Notes & accounts payable

16,342

7,561

Borrowings (short-term, within 1 year)

118,067

143,326

190

140

114,369

113,937

104,828

104,149

4,015

4,220

65,14260,298

4,819

4,819

341,669

353,882

AssetsCurrent assets

Fixed assets
Liabilities
Current liabilities

Bonds payable (within 1 year)
Fixed liabilities
Long-term loans payable
Bonds payable
Net assets
Capital stock
Total liabilities and net assets

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

22,850△1,987△377

25,215△4,203
17,056
17,488△8,78025,259

△50

△431
△679
205

△4,844-

12,2128

Year Ending March 31, 2024 Second Quarter Consolidated Balance Sheet (Break down)
Assets for sale1%

9%

Breakdown of borrowings andBonds payable(Millions of yen)
38%

45%

205,155

Current assets
7%

Assets for sale in process
1%
4%

5%

Total assets (353,882 Millions of yen) (As of the end of September 2023)

8%

Liquidation

New detached house

Renewal resale

Power generation facility

Other

Property, plant and equipment
1% 1%
0%

31%

38,255Inventory Assets

143,086

New built-for-salecondominium

94,178Long term loans payable

17,739Bonds payable

4,220

New built-for-sale condominium

Liquidation

New detached house

10,615

Other Liabilities

41,748

New detached house

Renewal resale

Renewal resale

17,554

Power generation facility

Not associated with assets

Power generation
Facilities

2,998

1

Other Current assets
New built-for-sale condominium

293,584

Short term borrowings
and Others
Bonds payable (within 1
year)

Cash and deposits

Liquidation

87%

Liabilities

40%
15%

140
104,149

6%

148,680

Net assets

60,298

Breakdown of liquidation assets

121,222

Shareholders' equity

59,33936,538Subscription rights toshares368

7%Intangible assets

8,452

Non-controlling interest

515

11%

Investments and otherassets

19,005

Other Net assets

75

2

5%

38%
39%

30%

1
68%

3%

23,812

Fixed assets
Property, plant andequipment(Of which, liquidation
assets)143,326

2
Residence

Offices

Hotel

Commercial and logistics

Land, etc.

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

9

Year Ending March 31, 2024 Second Quarter Breakdown of Assets / Borrowings and Bonds
Payable by Segment
Increased due to steady purchase of New built-for-sale condominium

Total assets

Assets for sale

Assets for sale inprogress

415

93,762513

94,69277,451Liquidation

13,473

4,266

36,53854,27837,507

New detached house

2,427

8,187

-

10,615

7,911

Renewal resale

15,844

1,710-

17,554

14,862

Power generation facility

2,998

-

82,63985,638100,886

Other

-

-

1,530

1,530

-

Borrowings and Bonds payable notassociated with assets

-

-

-

-

13,21635,158

107,928

121,222

264,309251,835(Millions of yen)
New built-for-sale condominium

Total

Property, plant andequipment

Borrowings andBonds payable※※ Includes Bonds payable 4,360 Millions of yen
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10

Segment Highlights

Real Estate BusinessNew built-for-sale condominium

Both Net sales and Gross profit decreased compared with the same quarter of the previous year due tothe decline in the number of completed Units
Progress rate of assumed gross profit is higher than the contract progress rate
Contract Status

Business Results※ As of the end of September 2023

Net sales

Units including JV

Second quarter

92,700

Full year(Forecast)

76,11027,585

94.2%

Units under contract
within delivery schedule

1,780

Year ended March 31, 2023

(Units)Year ended March 31, 2023

Net sales and Assumed Gross profit for 2,022 Contracted Units

Second quarter

20,400

Full year(Forecast)

16,72492,700
Full year Forecast

20,400Contracted Settlement

84,727
17.0%

4,684

Decrease

Year ended March 31, 2023

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Year ending March 31, 2024

Year ending March 31, 2024

Gross profit(Millions of yen)

91.9%

2,022

1,676

30.5% 19,179

5,645

2,200

Progress rates in contract

Decrease(Millions of yen)

Scheduled delivery Units

Year ending March 31, 2024

(Millions of yen)

Net sales

91.4%

19,722
96.7%

96.7%

Gross profit

11

Segment Highlights

Real Estate Business

Liquidation

Net sales and Gross profit both decreased compared with the same quarter of the previous year, but
progressed as planned
Sell mainly residential properties developed in-house
Business Results

Investment and Sale

Net sales
Second quarter
Full year

Investment Actual

30,631

30,000Residence(Forecast)

Offices

24,524Hotel

15,79835.6%
Decrease

Commercial and logistics

11%
12%
Total amountLand, etc.

13,368Millions of yen

77%(Millions of yen)

Year ended March 31, 2023

Year ending March 31, 2024

Gross profit

Sale ActualSecond quarter

Residence

Full year

Offices

5,724

6,707

5,410

(Forecast)

34.8%
Decrease

3,731

10%

4%

Hotel
Commercial and logistics
Land, etc.

13%

Total amount

15,798Millions of yen

73%(Millions of yen)

Year ended March 31, 2023

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Year ending March 31, 2024

12

Segment Highlights

Real Estate BusinessNew detached house

Renewal resale

New detached house: Both Net sales and Gross profit increased compared with the same quarter of the previous year andprogressed as planned
Renewal resale: Scheduled to deliver 1 building renewal projects in the second half, Net sales will be weighted toward thesecond half
Renewal Resale

New Detached House

Net sales

Net sales
14,890

Second quarter(Forecast)

Full year

10,660

Second quarter(Forecast)

Full year

10,041

4,492

6,159

15.7%

5,197
1,930

Increase(Millions of yen)

2,226

Increase

Year ended March 31, 2023

Year ending March 31, 2024

(Millions of yen)

Gross profit
1,530

Full year(Forecast)

1,328

581

11.0%

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Year ending March 31, 2024

1,260

Second quarter(Forecast)

Full year

990

645

342

Increase

Year ended March 31, 2023

Year ended March 31, 2023

Gross profit

Second quarter(Millions of yen)

15.4%

5.2%

324

Decrease

Year ending March 31, 2024

(Millions of yen)

Year ended March 31, 2023

Year ending March 31, 2024

13

Segment Highlights

Real Estate Business

Real estate rental

Real estate management

Real estate rental: Generally on par with the same quarter of the previous year
Real estate management: Gross profit decreased from the same quarter of the previous year due to increased expenses resulting
from the nationalization of managed properties
Real Estate Rental

Real Estate Management
Net sales

Net sales

Second quarter

6,000(Forecast)

5,819

Full year

2,998

2.6%

9,400

Second quarter

8,809

Full year

2,920

4,349

3.8%

Decrease(Millions of yen)

Year ended March 31, 2023

Year ending March 31, 2024

(Millions of yen)

Year ended March 31, 2023

1,460

(Forecast)

Full year

Second quarter

1,940

Full year

1,255(Forecast)

1,719

7.1%

683

938

Year ended March 31, 2023

4.3%

898

Decrease

Increase

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Year ending March 31, 2024

Gross profit

Second quarter(Millions of yen)

4,513

Increase

Gross profit

638(Forecast)Year ending March 31, 2024

(Millions of yen)

Year ended March 31, 2023

Year ending March 31, 2024

14

Segment Highlights

Energy Business ・ Asset Management Business

Energy business: Significant improvement in Gross profit due to change in business model to hold Facilities
Asset management business: Both Net sales and Gross profit decreased due to lower acquisition fees

Energy Business (Electricity sale)

Asset Management BusinessNet sales

Net sales

Second quarter

Second quarter

10,020

Full year

9,045

1,096

Full year(Forecast)

820(Forecast)

5,026

638

5,682

13.1%

56.7%

Increase(Millions of yen)

Year ended March 31, 2023

Decrease(Millions of yen)

Year ending March 31, 2024

Gross profit
3,720

Second quarter

Full year(Forecast)

Full year(Millions of yen)

610

(Forecast)

62.0%
Decrease

497.8%
Increase

Year ended March 31, 2023

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

963

575

2,066

345

Year ending March 31, 2024

Gross profit

Second quarter

826

Year ended March 31, 2023

276

(Millions of yen)

Year ending March 31, 2024

335

Year ended March 31, 2023

218
Year ending March 31, 202415

02Enhancing Corporate Value / Shareholder Returns

Toward the Realization of Management with an Awareness of Capital Costs and Stock Prices
Our group aims to achieve sustainable growth and increase corporate value over the medium to long term byrealizing Sustainability management based on a trinity strategy

Implementing Purpose
Management


Reforming the Growth
Structure

Dissemination of long term vision

through Fiscal Year 2030
Management with an awareness of capitalefficiency, such as ROE/ROICCreating and Providing Value toEvolve business portfolio

Stakeholders

Promoting ESG
Management


Incorporating of ESG into business operations

Realizing Sustainability Management
Sustainable Growth and Increasing Corporate Value over the Medium to Long Term
Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

17

Vision for the Year Ending March 31, 2030
Formulation of the Group‘s long term vision up to the fiscal year ending March 2030
Our Purpose

To Design Sustainable Environments for a HappierFuture 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.
Year ending
March 31, 2030
Long Term Vision

MIRARTH become a Takara-like presence for the local community by thoroughly learning"the unique characteristics" that are rooted in each region, connecting the development of"points" with "lines," and promoting the revitalization of "faces."
Encourage the region, Japan and the world.

Real EstateBusiness

Energy Business

AssetManagement
Business

Other
Businesses

Create "a circulating type business model that contributes to regional revitalization" in business areas※Takara = treasure

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

18

Medium Term Management Plan Key Indicators/Shareholder Returns
Aiming to Achieve the Various Key Management Indicators in the Medium Term Management Plan
The interim dividend for Year ending March 31, 2024 is 6 yen, Term end dividend is expected to be 18 yen, and Dividend payout
ratio is expected to be 31.0%
Medium Term Management Plan Key Management Indicators
After revision

Before revision

E q u i t y
L

T

D / E
R

r a t i oV

R a t io
O

E

(

( % )
%

)

( T ime s )(%)

More than 30%※March 31, 2025 end

More than 20%※March 31, 2025 end

18.0%

Less than 60%

Less than 65%

66.6%

Less than 2.5 times

Less than 3.0 times

3.5 times

More than 13%※From the year ending
March 31, 2024

No change

7.6%※ Revised initial key management indicators due to implementation of TOB (announced on May 15, 2023)

Dividends and Dividend Payout Ratio(Yen)

ReferenceYear Ended March31, 2023 ActualCommemorative dividend of 2 yen per share
60.0%

30
Interim

Term end

Dividend payout ratio
50.0%

52.5%
30.0%

20

38.4%
33.3%

23.5%

27.0%

26.7%
10

11

4

5

5

5

6

2
15/3

16/3

17/3

18/3

19/3

20/3

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

31.5%

40.0%

21
30.0%

18

18

13
11

11.9%
4
0

32.4%

10

9

31.0%

14

20.0%

10

4

4

4

21/3

22/3

23/3

6
24/3 (Forecast)7
25/3 (Forecast)

10.0%
0.0%

19

Reforming the
Growth Structure

Enhancing ROE
ROE in Year ending March 31, 2024 shall be Target for more than 13%

Year ending March 31, 2024 Strategy

Year ended March 31, 2023 Actual

Year ended March 31,
2023 Actual

Net income margin

ROE

①

3.0 %

7.6%

Total assets turnover②

Year ending March 31,
2024
Forecast

Profitability

In Real Estate Business and Energy Business
Improvement of earning

more than

Assets
Efficiency

Aim to improve profitability while being conscious of
Assets turnover rate

SafetyAiming to improve Equity ratio while controlling
the leverage ratio

13%

0.5 Rotation※Excluding the effect of
TOB

10.1%

Financial leverage③

4.7 Times
Net income attributable toowners of parent=

ROE

Shareholders' equity ※1

Net income attributable toowners of parent=

Net sales×

Net sales

Total assets

①

×

※2

Total assets※2

Shareholders' equity ※1②③※1 Average Net assets-Subscription rights to shares-Minority Interests *2 Average Total assets

Changes in ROE
25.0%
19.7%
20.0%

17.4%
13.3%

15.0%

more than 13%

18.6%
14.3%
10.9%

11.0%
9.0%

10.0%

7.6%

5.0%

0.0%

15/3

16/3

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

17/3

18/3

19/3

20/3

21/3

22/3

23/3

24/3 Forecast

25/3 Forecast

20

Reforming the
Growth Structure

Evolve Business Portfolio (Operating Income Percentage/EBITDA Percentage)

Aiming to increase Operating income by expanding Energy Business while steadily growing Real Estate Business
Operating Income Percentage
While steadily growing our core real estate business, we will expand our energy business and asset management business,
which are stock and growth businesses
Aiming for an earnings structure that balances flow income and stock income

30%

25%
Segment
Composition

95%

60%

5%

20%

15%

2023/350%

2027/32030/3

Real estate

EBITDA Percentage
Aiming for Real Estate Business : Energy Business = 1:1 on a EBITDA * basis in Fiscal Year 2030

Segment
Composition

85%

10%

55%

Real Estate Business

Energy Business

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

2027/3
Asset Management Business

45%

10%

5%
2023/335%

Other Businesses

45%

10%
2030/3※ EBITDA= Operating income + Depreciation and amortization
21

Promoting ESG
Management

Sustainability Basic Policy

By engaging in Sustainability activities through our business activities, we aim to contribute to solving social issues and achieving
SDGs (Sustainable Development Goals) and achieve lasting development at all Group companies.
Sustainability Key Themes

Policy/Be related SDGs

Creating Lifestyles
with Value

1.
2.
3.

Propose new lifestyle services
Supply of new condominiums for sale overseas
Supply of NEBEL series condominiums

Forming Communities

1.
2.
3.
4.
5.
6.
7.
8.
9.

Redevelopment projects undertaken
Community sponsorships
Conduct the board effectiveness assessments
Enhancement and strengthening of corporate governance system
Consideration of introducing the clawback provisions
Implement anti-corruption education and training
Promote understanding of human rights issues among officers and employees
Number of cases of adverse treatment
Survey to confirm the recognition rate of the whistle-blowing system

10.
11.
12.
13.
14.
15.

Providing Comfortable
Spaces of High Quality

1.
2.
3.
4.
5.
6.

On business processes and quality standards
Number of nonconformities
Implementation of a meeting to share preventive measures
Development of SQMS® masters
Percentage of Housing Performance Evaluation Sheets Acquired
Accident frequency rate and lost time frequency rate (applicable: employees)
Number of lost-time injuries (for employees)

7.
8.
9.
10.

1.
2.
3.
4.
5.
6.

Establishment of environmental policy
To acquire and disclose CO2 emissions
Setting CO2 emissions reduction targets
Certification rate for energy conservation grade (flat 35)
Support for cultural cultivationZEH Condominium Certification

7.
8.
9.
10.
11.

Developing
Environments andCultures

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Percentage of employees receiving health checkups
Stress check examination rate
Percentage of employees taking paid leave
Percentage of employees with disabilities
Percentage of female managers
Percentage of employees returning to work aftermaternity or parental leave
16. Training hours per employee
17. Satisfaction rate of sales staff survey

Audits of Customer Satisfaction Levels
Safety conference
Special patrol (safety check)Number of Safety and Health Training Programs Conducted(for Employees)
11. Actual of the supplier survey
12. Accident frequency rate and lost time frequency rate (target:
suppliers)
Acquire A or higher CASBEE certification
New operating capacity of mega solar power plants
Total generation scale
Maximize effective use of resources and water
Formulation of manuals for BCP measures

22

03
Medium to Long Term Strategies for Energy BusinessGrowth Roadmap in Energy Business
Energy Business is the second main business after Real Estate Business
Focus on Non-FIT businesses
Vision[Foundation formation [Business model and financial structure strengthening
period]period][High growth period][Under verification]
Global expansion and import of business models from overseas
With a view to renewable energy fuels[Securing stable power supply]
Establish a stable power supply system by securing stable powersources other than solar power[Solving social issues]
Secure end users through PPA and tie-ups with off-takers as apartner company to stably growth by securing stable customers

To help achieve carbon neutrality

Non-FIT power plant development/electricity sales[Securing stable earnings]
Stable earnings and O&M expansion based on FIT system
Strengthening the financial foundation

Power plant development/electricity sales utilizing FIT system and O&M
business (including other than FIT)

At present
Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Medium term

Reuse as Non-FIT power plant after FIT ends

Long term
24

Growth Image in Energy Business※

Diversifying Generation Sources to Accumulate 420MW by the Fiscal Year Ending March 2030
Target for the Year Ending March 31, 2030

+420MW

History of Our Energy Business

Biomass power generation

Sales of solar condominiums

Using FIT System to Develop Mega solar Power
PlantsSolar power generation
Cumulative generation scaleFirst listing on the infrastructure fund market※Mainly Profit to develop power plants by selling them360MW

(As of the end of September 2023)

Fujisan Asagiri Biomass Power Plant

Cashew nut shells

Wood chips

Wind power generation

Development of other renewable energy power plants(Wind power plants, biomass power plants, etc.)

Implementation of TOB in Takara Leben Infrastructure Fund Inc.

Facilities sales → Holdings
Business model shift to stock

LS Mihara power generation facility

Nagasaki Tsushima wind
power generation facility

To a new stage
LS Okayama-Tsuyama power
generation facility

Hokkaido wind generation facility

Non-FIT PPA business(On site / off site)※Number of MW converted into solar power

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

25

Energy Business Target for the Year Ending March 31, 2030
Commercialize Non-FIT business model with project IRR more than 6.0%
Considering the renewable energy business of new business models
Biomass power generation
Wind power generation
Target for the Year Ending March 31,
2030

420MW

Business potential verified by FIT and Non-FIT※1

Non-FIT PPA business(On site / off site)

Electricity sales unit priceMore than 14 yen /kWhElectricity sales period

More than 20 years

Project IRR

More than 6.0%

Revenue Target of Non-FIT

360MW

Solar power generation

Base revenue
Net sales: 10 billion yen※2

Existing holdings and development

EBITDA: 8 billion yen※1 Number of MW converted into solar power * 2 EBITDA = Operating income + Depreciation and amortization
Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

26

Energy Business Schemes
Expand business by combining not only FIT but also Non-FIT
FITElectricity sale
Buying Land
(Leasing)

Large-scale power plant
MIRARTH HD Group

Develop
Facilities

Electric powercompanies
10 to 40 yen /kWh
20 years in principle※Be obligated to purchaseat a fixed priceNon-FIT(PPA Business/Off site)

Off-taker area

Electricity saleHolding after
completion

Electric powercompanies

Small and medium scale
power plants
MIRARTH HD Group

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Electricity saleMore than 14 yen /kWhLong term contract in principle(Scheduled for 10-20 years)

Renewable energy
customers
More than 14 yen + α /kWh
• Retail commissions• Consignment charge• Balancing fees, etc.

27Alliance with off-taker
Secure off-takers in each electric power service area and build a foundation for business development in each area

Chubu Electric Power Company service area

Nationwide target
Hokkaido ElectricPower Company

Under negotiation

Sumitomo Mitsui Banking Corporation

SMFL Mirai Partners Co., Ltd.

Hokuriku Electric Power Company service area

Mitsui & Co. Plant Systems, Ltd.

Under negotiation

Osaka Gas Co., Ltd.

Shikoku Electric Power Company service area

Tohoku ElectricPower Company

Under negotiation
Hokuriku ElectricPower Company

Tokyo ElectricPower Company

Chugoku Electric Power Company service area

TEPCO Energy Partner,Incorporated

Chugoku ElectricPower Company

Under negotiation

Tokyo Electric Power Company service area

Chubu ElectricPower Company

Tokyo Gas Co., Ltd.

Kansai ElectricPower Company
Kyushu ElectricPower Company

Other negotiations underway

Shikoku ElectricPower Company
Okinawa ElectricPower Company

Source: Agency for Natural Resources and Energy
https://www.enecho.meti.go.jp/category/electricity_and_gas/electric/electricity_liberalization/what/
Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

28

04
Sustainability

Sustainability Initiatives [1]Strengthening the governance system
Election of a Group CRO (Chief Risk Officer) to strengthen response to increasingly diverse and complex risks and to implement
integrated risk management across the Company to ensure risk management, which is reflected in management strategies
Risk Management System

Risk Management Flow
Identification of corporate risk
External environment analysis
Hazard risk

Internal environment analysis

Crisis Management
Committee

Interviews with management

P

Identification andassessment of risks

Business (Strategy) Risk
Operational risk

D

Risk Response

C

Monitoring Report

Each executive
division
Various meetings

Creation of risk maps

A Operation and improvement
Reflection in management strategies

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

30

Sustainability Initiatives [2]
In Bangkok, Thailand
Participation in afforestation events

Participation in the 2030 Zero
Disposable Umbrella Project––A project led by Aikasa* aimed at eliminating disposableumbrellas for 2030, the deadline for achieving SDGs.

–

In participating, we are developing our Group's original
design umbrella through a sharing service.

In August 2023, ASSETWISE PUBLIC COMPANY
LIMITED, the project's JV destination, held a tree-planting
event in collaboration with the Bangkok Bureau of theEnvironment. Approximately 50 people, including our group
employees, participated.

※Aikasa: Japan's first full-fledged umbrella sharing service launched in December 2018.

Financing through Sustainable Finance

View of the event on that day

The app "Line OA" allows
growth records and tracking oftrees planted at events.

–

Leverage syndicated loans to raise funds totaling 22.4
billion yen. The proceeds will be used to fund futurebusinesses that will lead to the achievement of Sustainability.

App screen image

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

31

Sustainability Initiatives [3]Sponsorship of the 4th Children'sWorld Peace Summit®
–

Sponsorship as a silver sponsor of the 4th Children'sWorld Peace Summit® sponsored by the Peace Peace
Project.

–

The children did not stop at learning about the history ofwars and nuclear weapons in their own countries, but also
learned how to create peace and presented ideas forcreating world peace.

Integrated Report 2023 issued

https://mirarth.co.jp/en/ir/annual/

Launched in-house sustainability action–

Create a Sustainability Action! page to disseminate
Sustainability activities within our intrasite.

–

Employees of each company communicate their familiar
Sustainability activities in conjunction with SDGs symbol.

Day's scene

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

32

05
AppendixDevelopment of Redevelopment Projects
Starting with the redevelopment project in Toyama City, which received 1st Certification of the Basic Plan for the Revitalization ofCentral Urban Districts, aggressively participating in Type 1 urban redevelopment projects and quality building improvement
projects nationwide
Hokuriku area

Hokkaido and Tohoku areas
Address

Completion date

Business Name

Address

Completion date

Type 1 urban redevelopment project in Chuo-dori f-area

Toyama City,
Toyama Prefecture

March 2012

Hakodate Station-Front East District Type 1 urban redevelopment project

Hakodate City,
Hokkaido

October 2028 (planned)

Sakuramachi 1-chome Area Type 1 urban redevelopment
project

Toyama City,
Toyama Prefecture

June 2018

Project for Improvement of Excellent Buildings, etc. in the Shinmachi 1chome Area

Aomori City,
Aomori Prefecture

April 2023

Living and revitalization business in the Suehiro-Nishi area

Takaoka City,
Toyama Prefecture

March 2019

Project for Improvement of Excellent Buildings, etc. in Senshukubotamachi
district

Akita City,
Akita Prefecture

December 2025 (planned)

Project for Improvement of Excellent Buildings, etc. in theeast area around Takaoka Station

Takaoka City,
Toyama Prefecture

November 2023
(planned)

Project for Improvement of Excellent Buildings, etc. in the Chuo-dori 3chome Area

Morioka City,
Iwate Prefecture

August 2020

Furukawa Nanakamachi Nishi Area Type 1 urban redevelopment project

Osaki City,
Miyagi Prefecture

March 2022

Project for Improvement of Excellent Buildings, etc. in the Shinhama-cho
Area

Fukushima City,
Fukushima Prefecture

January 2022

Hosonumamachi district community-based redevelopment project

Koriyama City,
Fukushima Prefecture

June 2023

Business Name

Kanto area
Business Name
Odawara Station-Front Joint Building Condominium
Rebuilding Project

Project for Improvement of Excellent Buildings, etc.
in the Shinmachi 1-chome Area

Minamikoiwa 6-chome Area Type 1 urban
redevelopment project

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Address

Completion date

Minamikoiwa 6-chome Area Type 1 urban redevelopment project

Edogawa-ku, Tokyo

November 2025 (planned)

Odawara Station-Front Joint Building Condominium Rebuilding
Project

Odawara City,
Kanagawa Prefecture

June 2024 (scheduled)

Project for Improvement of Excellent Buildings, etc. in the Chuo
District of Sakae-cho 2-chome, Odawara City

Odawara City,
Kanagawa Prefecture

March 2028 (planned)

Project for Improvement of Excellent Buildings, etc. in the Higashi
District of the 5th Block of Beniya-cho, Hiratsuka City (provisional
name)Hiratsuka City,
Kanagawa Prefecture

March 2027 (planned)

Urawa Station West Exit South Takasago Area Type 1 urban
redevelopment project

Saitama City,
Saitama Prefecture

June 2026 (scheduled)

Machikatamachi and Toriyoko-cho District Type 1 urban
redevelopment project

Numazu City,
Shizuoka Prefecture

August 2027 (scheduled)

Project for Improvement of Excellent Buildings, etc. in the Marunouchi
1-chome Area of Kofu City

Kofu City,
Yamanashi Prefecture

March 2029 (planned)34

Progress in Overseas Business
Targeting Southeast Asian countries for the foreseeable future, focusing on real estate sales and derivatives
management businesses
Vietnam
Project Name

Address

Units

Completion date

THE MINATO RESIDENCE CT2 (South Building)Haiphong City

462 Units

December 2021

THE MINATO RESIDENCE CT1 (North Building)Haiphong City

462 Units

April 2024 (scheduled)

Address

Units

Completion dateAtmoz Bangna

Bangkok City

1,103 Units

March 2023

Kave Seed Kasset

Bangkok City

600 Units

April 2024 (scheduled)Atmoz Flow Minburi

Bangkok City

739 Units

November 2023 (planned)

Thailand
Project Name

THE MINATO RESIDENCE

Haiphong

BangkokVietnamThailandAtmoz Flow Minburi

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

35

Expand Recurring Revenue in Hotel Business
Expand recurring revenue through non-asset business schemes using MC and leasing
Target in Guest Rooms

Business Scheme

Aiming to operate 2,000 rooms by the fiscal year ending
March 2030

Management Contract (MC) Method
Owner

2,000

Our group(Operation)

rooms

Entrusted operation

Investor

Real estate
ownership

Management

Management
Consignment Agreement
Management commission

Preparation for
opening

Operation

288

rooms
Lease Method2023/9Owner

Our group(Management and operation)
Rental fee

Investor

2030/3

Real estate
ownership

Fixed-term leased land,
Term Buildings
Lease Contract
Management commission

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Preparation for
opening
Management

Operation

HOTEL THE LEBEN OSAKA•••

Rooms:107
Location: 2-2-15 Minamisemba, Chuou-ku, Osaka city
Opened on March 24, 2022

36

TOB to Takara Leben Infrastructure Fund Inc.
Decided to commence tender offer for Takara Leben Infrastructure Fund Inc. and established on November 11, 2022
This TOB improved the stability of Energy Business by expanding stock earnings, and EBITDA *1 grew
The final Profit is expected to have a stable profit of more than 1 billion yen from the year ending March 31, 2025
Increased EBITDA

Projected Final Profit Growth from TOB
Trends in Net income attributable to owners of parent

EBITDA trends
Other Business

Following theimplementation of thisTOB

Energy Business

250
Energy Business(after implementation of this TOB)

22.2

200

14.5

150

4.4
44

15.6
13.4
1.9
19

6.3
63

100

※2

9.9

Expenses incurred by TOB temporarily fall, but are expected torecover from the fiscal year ending March 2025 and remain stable.
(Millions of yen)
2,000

18.7

4.7
47

4.7
47

30
3

1,000

2.7
27

0

1.4
14

25/3
Forecast

14.5
145
10.1
101

50

11.5
115

9.3
93

23/3
Actual30/3
Forecast

11.3
113
8.5
85

△1,000(1,000)(Billions of yen)0

FY2020.3
20/3

FY2021.3
21/3

FY2022.3
22/3

FY2023.3
23/3

FY2024.3
24/3(Forecast)

FY2025.3
25/3(Forecast)※1 EBITDA= Operating income + Depreciation and amortization※2 Year ending March 31, 2023 recorded a △800 million yen at Energy Business due to the incurrence of
upfront costs due to the implementation of TOB
Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

(2,000)

Energy Business※ Considering only the impact of TOB
37

Acquisition of Land for Condominiums and Supply Area

Status of land acquisition for condominiums

Condominium supply area

Nationwide Total 9,955 units

Expanded nationwide to 40 prefectures already establishedNew purchases in Nara Prefecture

9
8

10

Metropolitan
areas

7

40.1%

1

6

Takara Leben's sales offices
Supplied and purchased areas
New purchasing area

2

3

5
4

※

1

Capital area

25.9%

6

Kanto-Koshinetsu area 13.8%

2Chubu area

6.5%

7

Hokuriku area

8.1%

3

Kinki area

7.7%

8

Chugoku area

2.7%

4

Hokkaido area

3.7%

9

Shikoku area

2.2%

5

Tohoku area

21.0%

10

Kyushu area

8.5%

Metropolitan areas: Capital area, Chubu area, Kinki area

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

※ As of the end of September 2023

38

Liquidation Business Assets Size
Liquidation Business Assets Size
Existing and completed properties(Millions of yen)

Properties under development(Millions of yen)

3,015

280

11,877

5,715

3,122

280
799
9,009

Book value atthe end of September
2023

3,872

37,669Book value atthe end of September
2023

11,098

13,961Millions of yen

Estimated book value
after completion

24,153

17,061※

38,655

Millions of yen

Millions of yen

Includes liquidation Assets recorded in Real estate for sale

Residence

Offices

Hotel

Commercial and logistics

Assumed assets amount after completion(Millions of yen)
End of March 2024

End of March 2025

end of2026
March
2026
From the endAfterof Marchonward5,995

20,93425,12931,06036,0305,995

22,64828,16055,873 Millions of yen

3,814

64,649 Millions of yen

4,945

5,995

6,138

76,324 Millions of yen※ Assets of 76,324 Millions of yen has been secured including the complete component in the future.

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

39

Assets Operational Size
Aiming to accumulate 300 billion yen through renewable energy, REIT and private funds by the end of March
2025

300
Renewable energy

REIT

Private Funds

249.4

420
42

209.9

148.6

500
50

252

161.9

150
1,500

23%

1,322
132.2

37%

6%

34%

98

Residence
OfficesHotel

23(Billions of yen)

779
77.9

Commercial Facilities and Other

100
1,000

8.3
End of March. 2017

End of March 2018

End of March 2019

End of March 2020

End of March 2021

End of March 2022

End of March 2023

End of September
2023

End of March 2025
Target※ Calculated on an acquisition-price basis. (Renewable energy takes into account the impact of TOB established on November 11, 2022)

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

40

Consolidated Balance Sheet (Change)

End of March
2021

End of March2022

End of March2023

End of March
2021

End of March2022

End of March
2023

28,682

33,61737,52335,158Liquidation Assets

55,97459,58458,27854,278New built-for-salecondominium

9,000

10,5292,070

415

Residence

17,17823,25322,127

20,886

Liquidation

9,718

8,838

15,88013,473

Offices

20,201

16,767

21,97020,934

525

1,120

2,151

2,427

Hotel

9,547

9,199

9,966

5,995

9,437

12,12814,045

15,844

Commercial and logistics

6,834

8,667

3,658

3,814

―

1,001

3,375

2,998

Land, etc.

2,213

1,696

554

2,646

Assets for sale in process

43,76658,03682,713

107,928

Borrowings and Bonds
payable118,558

127,649

227,101

251,835

New built-for-salecondominium

33,73045,47572,801

93,762New built-for-salecondominium

30,66541,014

61,461

77,451Liquidation

5,667

5,987

560

4,266

Liquidation

36,86040,182

38,34837,507

New detached house

3,858

6,533

8,196

8,187

New detached house

3,880

6,757

7,832

7,911

510

39

1,154

1,710

Renewal resale

8,033

10,076

13,350(Millions of yen)

Assets for sale

New detached house
Renewal Resale
Power generation Facilities

Renewal resale

End of September
2023

Property, plant andequipment

64,07063,739125,362

121,222

New built-for-salecondominium

―

―

518

513

Liquidation

40,58744,75841,83636,538

Power generation Facilities

22,50918,00981,598

972

970

1,407

Other

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

※

82,6391,530(Millions of yen)Power generation Facilities

25,445

13,90993,862

Borrowings and Bonds
payable not associated withassets

13,67315,70812,245End of September
2023

14,862※

100,886※

13,216※※ In November 2022, Green Energy LLC, a consolidated subsidiary, made a tender offer for Takara Leben
Infrastructure Fund Inc. Impact of making Takara Leben Infrastructure Fund Inc. a consolidated subsidiary.

41

MIRARTH HOLDINGS Group's 50-years History

Takara PAG Real Estate Advisory
Leben Community

Takara Asset Management
Leben Clean Energy
Leben Home Build

2022

2023

Takara Leben Real Estate Investment Corporation listed
Established Vietnam Hanoi Representative Office50

By Takara Leben Infrastructure Fund Inc.
was delisted through tender offer

Established Takara Komuten Co., Ltd.
Detached housing lot sales businessStarted used equipment resale businessStarted real estate rental business

Established Leben Community Co., Ltd.
Launched real estate management business

Launched own condominiums Leben Heim series
Launched condominium business

Listed on JASDAQ

Listed on the First Section of Tokyo Stock Exchange Market

Launched the new condominium brand
LEBEN and THE LEBEN

Leben Solar Shioya power generation facility, the first project
start of operation
Start of power generation business

By Takara Leben Infrastructure Fund Inc.
First listing on the infrastructure fund market

Launched the new condominium brand NEBEL

Change in company name due to holding company structureth anniversary

2018
2017

42
Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

LebenTrustLeben Zestock

2016
2013
2012
2004

Takara Leben (Thailand)
Takara Leben Realnet
Beginning with the detached housesales business in 1972, developing
the business centered on thecondominium business

2001
1994
1988
1982
1972

Takara Leben

Company Profile

Company Name

MIRARTH HOLDINGS, Inc.

Company Name

Takara Leben Co., Ltd.

Representative

Representative Director Kazuichi Shimada

Representative

Representative Director Kazuichi Shimada, Shoichi Akisawa

Address〒100-0005
Marunouchi, Chiyoda-ku, Tokyo 1-8-2
16th floor of steel building

Address〒100-0005
Marunouchi, Chiyoda-ku, Tokyo 1-8-2

Incorporation

September 21, 1972

Incorporation

August 29, 1989

Capital stock

4,819 million yen

Capital stock

400 million yen

Listed market

Prime Market, Tokyo Stock Exchange(Securities Code: 8897)

Number of
employees

530 persons *As of September 30, 2023

Number of
employees

1,365 persons (consolidated) * As of September 30, 2023

Business Details

Business Details

Business management of group companies

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Planning, development, and sales of new built-for-salecondominium, the real estate liquidation, rental, anddistribution businesses

43Stock Price Range
Nikkei Average

TOPIX

8897 MIRARTH Holdings

180.0%

160.0%

140.0%

120.0%

100.0%

80.0%
2020/9/30

2021/3/31

2021/9/30

2022/3/31

2022/9/30

2023/3/31

2023/9/30※ Term: September 30, 2020 to September 30, 2023
Indexed to September 30, 2020 of 100

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

44

MEMO

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

45

MEMO

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

46

MEMO

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

47

Handling of the Materials

This material has been prepared based on data as of the end of September 2023.
The plans and forecasts described in this document are our judgments at the time of
preparation of the document. We do not guarantee or promise their realization or
achievement, and we do not guarantee or promise the accuracy or completeness of theinformation. Details described in this document is subject to change without notice.

MIRARTH HOLDINGS, Inc.
IR Office
TEL: +81-3-6551-2133
E-mail: irinfo@mirarth.co.jp