CSR Report 2016
Make you smile with MIRAIT: Mirai (future) + ITMIRAIT Holdings Corporation
CSR Office

5-6-36, Toyosu, Koto-ku, Tokyo, Japan 135-8111
Phone: 81-3-6807-3120
Fax: 81-3-5546-2962

http://www.mirait.co.jp/en/

The MIRAIT Group —Comprehensive engineering & services company

Our IT and Technological Excellence Are Creating
the Communications and Lifestyles of the Future
CONTENTS

Basic Management Philosophy
1. Strive to be a leading Japanese corporation thatrealizes the highest levels of customer satisfaction
and trust as a “comprehensive engineering & services
company” that continually creates new value centeredon the field of information and telecommunications.
2. Contribute to the realization of an enriched andcomfortable society by placing value on safety andquality and offering the highest level of services.
3. Continue to be an enterprise that coexists and mutuallyprospers with people and society as a company that
fulfills its corporate social responsibility and always
respects human beings.

The Group’s Basic Management
Philosophy, Code of Conduct, and Charterof Corporate Ethics are structured as
below to form the MIRAIT Way.

The MIRAIT Way

1. Always deliver services that meet and exceed
customers’ expectations

3. Take a step forward with wisdom and courage
4. Always follow the basic principle of integrity and fairness
5. Demonstrate strong teamwork to create a bright future

Charter of Corporate Ethics

05

Basic
Management
Philosophy
Code of Conduct

Charter of Corporate Ethics of the MIRAIT Group

3. Basic policy on shareholders and creditors

15

CSR of the MIRAIT Group16

Corporate Governance and Internal Control

19

7. Basic policy on the protection of personal information,customer information, and intellectual property

1

The MIRAIT Group CSR Report 2016

Corporate ethics, social norms, CSR

In this Report, these activities are summarized in the Special
Feature, “Creation and Safeguarding,” while detailed policies andactivities for each category are described in the reporting section.
Disclosure of CSR information
We publish the MIRAIT Group CSR Report each year in theform of booklet that gives an at-a-glance overview of activities
conducted during the year under review. Information on our CSR
activities is also available on our website, along with detailed
corporate information and information on our businesses andinvestor relations.
WebsiteCSR

http://www.mirait.co.jp/csr/

Corporate
http://www.mirait.co.jp/company/
information
Businesses http://www.mirait.co.jp/service/IRhttp://ir.mirait.co.jp/index.html

Enhancing Customer Service

Period covered

23

Commitments toward Environmental Protection

April 1, 2015 to March 31, 2016
(including reports on activities conducted in and after April 2016)25

Creating Workplaces Where Employees Can
Work with Enthusiasm

29

Financial Data

33

Overview of the Group

4. Basic policy on business partners
6. Basic policy on society and the environment

Working Together with Communities fora Prosperous Future

The MIRAIT Group CSR Report 2016 provides an overview of theGroup’s policies and activities toward helping to create a sustainable
society. To fulfill our priority missions, which we have selected toactively address various social issues, we engage in businessactivities that contribute to social sustainability as well as in a variety
of non-business activities for the benefit of our stakeholders.

21

Charter of Corporate Ethics

5. Basic policy on employees and workplace

Special Feature“Creation and Safeguarding”

1. Basic policy on legal and regulatory compliance
2. Basic policy on customers

Message from the President and CEOMIRAIT Group’s Businesses andSocial Responsibility

The principles that guide theawareness, attitudes, and actions of
MIRAIT Group employees and bring
their mind together

Code of Conduct

2. Further enhance reliability and trust with ourfrontline capabilities

03

Editorial policy

Guidelines referred to
ISO 26000 (guidance on social responsibility)

Published in August 2016
Inquiries:
MIRAIT Holdings Corporation
CSR Office
5-6-36, Toyosu, Koto-ku, Tokyo, Japan 135-8111
Phone: 81-3-6807-3120

2

Message from the President and CEO

Tackling new issues and new areasof business to meet the needs ofa changing society

Message from the President and CEOMIRAIT:
Mirai(Future)+ IT
Meet Changing Needs of Society with Our
Comprehensive Strength in Engineering & Services
Masatoshi Suzuki
President and Chief Executive Officer
MIRAIT Holdings Corporation

Fulfilling our corporate responsibility
through business activities in the
rapidly growing information andcommunications market
It has been six years since the former Daimei Telecom
Engineering Corporation, Commuture Corporation, and
TODENTSU Corporation integrated their management toestablish the MIRAIT Group.
Each of our three predecessor companies wasestablished soon after World War II to help restore anddevelop telephone lines throughout Japan. Thereafter, thecompanies expanded their business steadily, in step withJapan’s rapid economic development. In October 2010,
they decided to consolidate their respective strengths as

3

The MIRAIT Group CSR Report 2016a new corporate group named MIRAIT, the name coinedfrom the terms mirai (meaning “future” in Japanese) andIT (information/integration technology). As the nameindicates, MIRAIT aspires to aggressively tackle and solve
emerging and future societal issues as a “comprehensive
engineering & services company” that offers strong
engineering and service capabilities based on innovative
information and communication technologies (ICT), whichhave been accumulated over many years in the areas ofcommunications infrastructure and power supply facilities.
The MIRAIT Group has been working tirelessly todevelop businesses that meet the needs of society
while keeping pace with the rapidly growing informationand communications market. Fulfilling our corporate
responsibilities through our business activities has been
our priority from the beginning.

As of recently, the business environment surrounding the
MIRAIT Group has been undergoing drastic change.
In the area of information and communications,new business models are emerging for the Internet ofThings (IoT) and globalization is progressing. The energy
environment is also changing due to the liberalization of
the retail electricity and gas markets and diversification ofenergy sources. Meanwhile, social infrastructure is being
re-built for the 2020 Tokyo Olympics and Paralympics.
These changes, as well as increasing demand for IoT cloudand office solutions, are prompting the need for social
innovation, giving rise to new and promising markets.
To meet these social trends, the MIRAIT Group isfurther strengthening its ability to propose solutions toactively expand its business in various promising fields,such as cloud computing, stock (as opposed to flow),environment and energy, and global business, as well as
to increase the productivity and operational efficiency of
its existing businesses. These two approaches for new
and existing businesses are each indispensable and act
as two wheels that drive our business forward.
Against this background, in fiscal 2015,
air-conditioning facility and electricity storage system
works in the Environmental & Social Innovation Businesssegment increased. At the same time, revenues from the
Mobile Network segment decreased due to the decline
in the number of construction works of base stations.
Meanwhile, the software development business in the ICT
Solutions segment was sluggish, resulting in a significant
decrease in profit for the first time since the establishmentof the Group. We intend, however, to remain a company
that fulfills its corporate responsibilities by resolutely
responding to social demands. In order to do this, we willcontinue to take a long-term perspective as we work to
produce specific achievements to solve social issues in
our new areas of business, while promoting the reform of
our business structure to regain stable revenue growth.

Promoting diversity to leverage thestrength of each employee and makethe best use of available expertise
Whether the MIRAIT Group can become and continue tobe a “comprehensive engineering & services company”
depends on the strength of each individual employee. We
therefore regard our employees as our most importantmanagement resource.
Partly due to the recent rapid development oftechnological innovations in industry, embodying the needsof customers now requires us to maintain and enhance
our high-level expertise in the areas of engineeringand services at all times. At the MIRAIT Group, humanresources development initiatives are systematicallyintegrated into our corporate activities. Moreover, it
is ensured that our ICT—our core technologies—andour wealth of experience, specialized knowledge, andaccumulated technologies (mainly in our communications
infrastructure and power supply facility businesses) are
passed on and shared across the organization to makesuch assets part of our collective strength.
To ensure that our expertise is passed on and shared,
we also attach importance to diversity. We provide thenecessary environment and support to enable talented
individuals with the expertise and skills required todrive our business forward to reach their full potential
regardless of gender, age, or affiliation. This encourages
diverse and talented workers to join us and gives us
diverse perspectives. By promoting workplace diversity,
including from highly experienced workers to young
workers for whom we have great expectations for the
future, as well as by establishing systematized humanresources development, we will realize sustainable growthand live up to public demands of us as a company.
In line with the above, the MIRAIT Group received
the “Kurumin” certification*1 as a company supportingchildcare in fiscal 2015 and is working to promote theactive engagement of female employees in responseto the Act of Promotion of Women’s Participation andAdvancement in the Workplace.
*1 “Kurumin” certification: Given to companies certified by the Minister of Health,Labour and Welfare as supporting childcare. See page 27 for details.

Continuing to be “your company,”a company trusted by society
A corporate enterprise that contributed to the urbanizationof Japan through the construction of telephone lines
at the time of its establishment, the MIRAIT Group has
ever since been expanding its business scope to match
contemporary needs. This scope now includes electricity
storage system and other new energy and environmental
businesses as well as new community planningbusinesses for revitalization in the earthquake-stricken
Tohoku region.
As we complete each of our tasks and projects in asafe, high-quality, and efficient manner, we gain morecustomer trust. This, in turn, leads us to another business
opportunity. By emphasizing the MIRAIT Group as “yourcompany” (as opposed to “our company”), we signal
to stakeholders that “the MIRAIT Group is managed onyour behalf.” In order to enhance corporate responsibility
throughout the Group, we will work together withstakeholders toward becoming a company that is trusted
and needed by society, and a company where employees
strive to enhance the quality of their work while keeping
the issues of governance and compliance at the forefrontof their minds.
Through these efforts, as well as through further
increasing the transparency of every corporate activity
undertaken by the MIRAIT Group—the first step of whichis to communicate the specific details of what we do asa “comprehensive engineering & services company”—
we will continue to be a trusted company with a view toachieving sustainable growth.

4Communications Infrastructure
We provide a wide range of services for highspeed, large-capacity broadband networks,
from design to construction and maintenance.
Construction, maintenance, and operation ofbroadband communication facilities● A variety of services for telecommunications
carriers’ fixed-line communications facilities,
CATV works, etc.
●

Mobile Network
We provide a wide range of services for thedevelopment and construction of wireless basestations to meet the needs of high-speed,large-capacity mobile communication andsupport the evolution of applications with greater
diversity and functionality.

Special Feature●

MIRAIT Group’s Businesses and Social Responsibility
The social responsibility of the MIRAIT Group is to create systems and others that enhance convenience,meet social needs, and safeguard the safety of people’s lives by leveraging the experience andtechnologies we have built up over many years.

Construction, maintenance, and operation of mobile
communications facilities

Creation and Safeguarding
Power supply/
air-conditioning
facilities

LAN/WAN equipment in offices
Data centers

Contact centers

System/software development
Monitoring/maintenance services

Environmental/Social Innovation

Wi-Fi solutions

Telecommunication and power supply
facilities are essential social infrastructure
undergirding people’s lives and industry.
We construct highly reliable infrastructure
to sustain public lifelines.

Surveillance camera solutions

Construction, maintenance, and operation offacilities for environmental conservation andalternative energy● Development of social infrastructure● Construction, maintenance, and operation of
power supply and air-conditioning facilities
for companies●

ICT Solutions
We provide ICT infrastructure and high-quality solutions for business use.
●●

5

Data-based/voice-based communications facilities
Development of ICT systems

The MIRAIT Group CSR Report 2016

EV battery charging facilities

6

MIRAIT Group’s Businesses and Social Responsibility

Creation

Development of a solar power plant—DREAM Solar Shunan Shikuma—

Construction of Infrastructure

Quality inspection conducted by MIRAIT

Operation/
maintenanceConstruction

Procurement■ Flow of solar power business

DesignCreation

MIRAIT Technologies Corporation is engaged in theengineering, procurement, and construction (EPC) of
solar power plants. As an EPC contractor, the company
undertakes all activities from design and procurement tocompletion of power plants.
One of the most recent examples of our work isDREAM Solar Shunan Shikuma located in Yamaguchi
Prefecture, where the intensity of solar radiation isstrong, particularly in areas along the Seto Inland Sea.
Before installing 1.5 MW solar panels we had to flatten
land with a height difference of 22 meters to prepare an
approximately 2.8 ha site. Our role in this project was tosupport the clean energy business of the customer (project
owner) in terms of engineering. The project requiredcomprehensive engineering capabilities on our part,
including the design of the entire facility, site preparation
planning, procurement of solar panels and electric
equipment, and construction. We drew upon our vast
experience and expertise to complete and put the power
plant into commission in February 2016, with no accidents
occurring at any stage of the project.

Major works involved●●●

Site preparation
Installation of solar panel mounting
systems and assembling andinstallation of solar panels
Electric work

The MIRAIT Group undertakes projects to construct important infrastructure for energy,
telecommunications, and other lifelines in and outside Japan.
Through these projects, which we conduct by capitalizing on our accumulated experience and expertise,
we aim to contribute to building an environmentally friendly and convenient society that
we can pass on to future generations.
DREAM Solar Shunan Shikuma

Development of Next-generation Energy Infrastructure

The development and introduction of different types ofsustainable energy is a social issue attracting global
attention. Fossil fuels have been used as an energy
source for many years. When combusted, however, fossil
fuels generate CO2, a cause of global warming, and will
be depleted sooner or later if we continue to use them.
Climate abnormalities, rising sea level, the destruction of
ecosystems, and other problems have been caused by
global warming and are worsening on a global scale. In
addition to these problems, in Japan, energy shortage has
emerged as a serious concern since the 2011 Great East
Japan Earthquake. Despite this, the share of renewableenergy in electricity generation is still low in Japan
compared with other major developed countries.
Of renewable energies currently being developed,
including solar, wind, hydroelectric, geothermal, andbiomass, solar power generation has been introduced
most widely in recent years. The MIRAIT Group is actively
engaged in solar and wind power generation facility
projects with a view to developing these sustainable,

7

The MIRAIT Group CSR Report 2016next-generation energies and passing on a better
environment to future generations. We will leverage ourtechnological prowess, which we have nurtured overmany years, in various areas of business in and outside
Japan to help create a society in harmony with nature.

■ International comparison of the share of

renewable energy in electricity generation
Renewable energies (except hydroelectric power)
Coal

Oil etc.

Natural gas

Hydroelectric power

Nuclear power(%)
Share in electricity generation

Clean energy is essential for
our future

Not stopping at “creation”

100
80

16.0

20.9

10.1
2.5

17.2

45.2

5.4
16.3

60
40
20

3.2
23.0

0

Germany

14.3
25.9
Spain

19.2

78.3

19.3

0.0
46.2

30.4
1.4

26.8
1.1

10.6

29.6

39.8
2.5
31.0
0.9
1.8
2.2
6.1
9.0
10.9
17.6
6.9
5.1
3.2
U.K.
FranceU.S.A.
Japan

Source: Agency for Natural Resources and Energy, “Outline of Electric Power
Development” (FY 2014 actual data), IEA Energy Balance of OECDCountries (2014 estimated data) [2015 edition]—Operation and maintenance services andour solar power plant business—
The MIRAIT Group is becoming increasingly involved
in solar power plant projects as an EPC contractor, but
we do not stop at “creation.” We also provide operationand maintenance services after the completion of power
plants, and are even engaged in electricity power sales.
The MIRAIT Technologies Solar Power Operation
Center, a MIRAIT Technologies’ facility specializing in theoperation, maintenance, and monitoring of solar power
plants, supervises plant operations 24/7/365. In theevent of trouble, personnel are dispatched to the plant
immediately for recovery.
The MIRAIT Tochigi Onodera Solar Power Plant wascommissioned by MIRAIT Corporation in Shimotsuga
District, Tochigi Prefecture in March 2014 as part of thecompany’s electric power sales business. The amount ofelectricity generated at the plant reaches approximately
1.55 million kilowatts per year, providing a stable supply ofelectric power since its commission.
By providing comprehensive support for thegeneration of perpetual clean energy through these
efforts, we continue to contribute to the realization of anenvironmentally considerate, sustainable society.

Shunsuke Tsujii
Civil Works Department,
Civil Works Business Unit
MIRAIT Technologies

After I joined the company, I was in charge mainly ofunderground construction works for telecommunications
carriers and electricity cable undergrounding works as a civilengineer, but in recent years I have been involved in solar
power system construction works as a field representative.
In the DREAM Solar Shunan Shikuma project, which wascompleted in February 2016, as a field representative I was
responsible for basic design, procurement of equipment,
consultation with the electric power company, construction,
testing, and maintenance. The climate of Yamaguchi Prefecturein which the site is located is said to be mild with a relatively
low number of natural disasters, yet during this project theprefecture was hit directly by a typhoon and a record-breaking
monster storm. We were able to respond to and survive these
unexpected difficulties thanks to the meticulous drainage
plan and construction schedule control, and experienced noaccidents. This is something I am very proud of.
Going forward, I want to try various construction works
by making the most of my experiences working on solar
power system projects. My motto since I joined the company
has been to “create something beneficial for the world” andI will continue embracing this motto for the future as well as
improving my technical and team leadership skills to become
an engineer who can contribute to the development of society.

8

MIRAIT Group’s Businesses and Social Responsibility

Creation

Creating Convenience in Everyday Life
Opening a broadband network

Eliminating a blind spot at a subway station

Development of Social Infrastructure in Japan
Social infrastructure is evolving along with the adventof new technologies and changes in society. In themodern world, environments that enable information to betransmitted and received in real time are indispensable
both in our private and business lives, and due to the
spread of smart devices, efficient mobile communications
need to be provided regardless of location, whether in abuilding or subway train or in the mountains.
To help create environments where high-speed, stablecommunications are available at all times in Japan throughimproved communications infrastructure and mobile
networks, the MIRAIT Group undertakes, among others,
the building of optical networks as well as the extensionof existing mobile communications facilities to support
the rapidly increasing amount of data traffic. We maintaina high level of technological innovation and quality byoffering integrated services that encompass everythingfrom design to construction and maintenance to bringgreater comfort and convenience to people’s lives.

Development of Social Infrastructure Overseas
The MIRAIT Group utilizes technologies, experience,and know-how accumulated through business in Japanfor the development of communications infrastructure
overseas as well. We have a track record of undertaking
communications facility construction and other works inmore than 90 countries since the 1970s.
In 2011, when Australia launched its National Broadband
Network (NBN) project as a government initiative, we
made a full-scale entry into the market. Since then we havedeveloped—mainly through the local Group company—a business structure that allows us to conduct sales
activities and construction works across the country andhave thereby established a solid business base. Our ICT
engineering services are contributing to the sophisticationof the communications infrastructure in Australia.
In Myanmar, where rapid economic growth is expected,
we have been engaged in a project of laying approximately
2,500 kilometers of optical cables throughout the country since
February 2015. A catastrophic flood in August 2015 carriedaway worksite camp buildings of a local business partner andcaused other damage. The disaster could have delayed theprogress of construction significantly, but thanks to support
from our Group company MIRAIT Philippines Inc. and others,
the damaged worksites have been restored and a total of
about 6,000 workers are currently working hard to push the
project forward at a rate of 60 kilometers per week on average.
At the same time as this project was undertaken, MIRAITTechnologies also established MIRAIT Technologies Myanmar
Co., Ltd. Before this, we had worked in Myanmar on a projectby-project basis, but the establishment of this local subsidiaryis expected to allow us to contribute to the developmentof infrastructure in Myanmar in an ongoing manner and tonurture locally hired workers to become engineers. We willcontinue putting our comprehensive engineering capabilities
to best use to support the development of overseas countries.

9

The MIRAIT Group CSR Report 2016

Creating environments with greater network connectivity: Wi-Fi solutions
The rapid spread of smart phones and tablets, the growth of social
network services, and the expanded use of photos, video, and other visualcontents have increased mobile data traffic drastically. With this trend as a
backdrop, Wi-Fi is attracting attention as the “third access” after fixed andmobile access.
The MIRAIT Group has a track record of conducting a large number of
Wi-Fi installation works, realizing anytime, anywhere access to networks.
Our comprehensive support ranges from the development of infrastructure
to facilities operation and maintenance. Our infrastructure development
work includes the selection, procurement, and installation of optimal
network devices for particular environments and uses, such as popular
tourist spots and amusement parks visited by tens of thousands of people.

Outdoor Wi-Fi device

Creating environments with easier access to
information: PONTANAThe MIRAIT Group has developed the PONTANA, a new digital information
kiosk from which users can select digital contents from those displayed,bookshelf-like, on a large screen and download them to their smart devices
using an app. The downloaded content can be carried and accessed via
users’ devices anytime, anywhere. These kiosks have been installed inlarge commercial facilities and public institutions, and were even adopted
as an information provision tool for use during the 2016 G7 Ise-Shima
Summit, offering multilingual digital contents to overseas media personnel
and playing an important role in PR activities of Mie Prefecture.

Connecting optical lines
in Australia

Creating comfortable business environments: ImageGate®
The MIRAIT Group has developed ImageGate®, a business solution app for
smart devices designed to increase work efficiency. ImageGate® assists
out-of-office users working in remote places, where data transfer is difficult
and returning to their offices for reporting requires extensive travel time,allowing them to accomplish tasks and submit reports more efficiently.
Drawings, photos, and other data can be imported into smart devices sothat they can be shared with others and additional data added even where
network access is not available. The timely sharing of data realized by thisapp makes even challenging tasks in remote places easier.
Undergrounding acommunications conduit
in Myanmar

10

MIRAIT Group’s Businesses and Social Responsibility

Recovery from a storm disaster in
Joso City, Ibaraki Prefecture

Safeguarding
Recovery and Maintenance ofSocial Infrastructure

Torrential rain caused by a typhoon in September 2015
inflicted tremendous damage on the northern Kanto region
and the Tohoku region. The areas in and around Joso City,
Ibaraki Prefecture sustained particularly severe damage,with part of the dike along the Kinugawa river having
collapsed on September 10, causing a massive flood. The
considerable amount of water tilted utility poles, cut cables,and flooded communications facilities, causing various
communications services to stop functioning simultaneously.
MIRAIT Corporation, whose service area covers Joso
City, responded quickly and worked together with NTT
East and other companies to implement emergency
repairs for prompt recovery of the services. We also joined
volunteer activities to help local residents in Joso City,
such as removing debris from and cleaning their houses.
We will focus our activities on the permanent recovery of
infrastructure by relocating power supply facilities andemergency generator engines in flooded buildings tohigher floors that are unlikely to be affected by flooding.
In this way, the MIRAIT Group works hard to safeguard
the lives of people through business, local volunteer
activities, and various other means.

Safeguarding

One specific example of a facility that we helped
reconstruct is the Minamisanriku Town Regional
Wholesale Market located at the Shizugawa fishing port
in Minamisanriku Town, Miyagi Prefecture, which had
been destroyed by the tsunami. To revitalize fisheries, thetown’s main industry, in order to accelerate reconstructionof the town, it was decided that the new wholesale market
would be rebuilt on the same site. MIRAIT Corporation
took charge of the design and construction of electricalfacilities for the market. The market was completed inJune 2016 and is expected to serve as the center of thetown’s fishery and marine industry and restore its vitality.
The MIRAIT Group is thus cooperating with local
municipalities in their reconstruction efforts to support the
lives of the affected residents.

Minamisanriku Town Regional Wholesale Market

Electricity, communications, and water supply are indispensable infrastructure for modern life.
If this infrastructure sustains heavy damage due to an accident or natural disaster,
people’s lives can be severely impacted.
The MIRAIT Group monitors, maintains, and, when necessary, repairs important infrastructure tosafeguard people’s personal safety and comfort.
Takahiro Obara

Prompt Recovery of Infrastructure after a Disaster
Recovery works after the Great East
Japan Earthquake
For companies involved in social infrastructure, safeguarding
the secure and continuous use of physical infrastructure is
one of the most important social responsibilities.
In the event of a typhoon, earthquake, or other serious
natural disaster or an accident, communications are evenmore crucial than usual. However, even communications
networks that have been designed with all possible safety
precautions can be disrupted, and therefore prompt
recovery becomes the key to maintaining networks. In
the case of such a disaster or accident, all the MIRAITGroup companies work closely together toward realizing a
prompt recovery.
The Great East Japan Earthquake of March 2011
was an unprecedented catastrophe. The MIRAIT Group
recovery team was formed and dispatched to thedevastated areas immediately after the disaster. Because

11 The MIRAIT Group CSR Report 2016

Integrated System Engineering Department
Tohoku Branch
MIRAIT Corporation

Reconstruction is what results from me
fulfilling my duty
emergency repairs for fixed and mobile communication
networks was needed urgently, the initial recovery teamsent to the areas consisted mainly of cable engineers,
who connect cables, and mobile network engineers, whobuild mobile phone base stations. Five years on from theearthquake, the areas once devastated are now in thereconstruction stage. The MIRAIT Group is still working on
projects in the areas to ensure the safety and comfort oflocal residents.
As well as responding to earthquake damage, the
MIRAIT Group is also engaged in the recovery of areas
hit by typhoon, heavy snowfall, tornado, or other type ofnatural disaster throughout Japan.
We will continue our efforts to safeguard
communications and other critical infrastructure as well as
the lives of people sustained by such infrastructure.

Reconstruction of lost towns—
Great East Japan Earthquake
reconstruction projects
Social infrastructure recovered after the Great East Japan
Earthquake will be further improved in the reconstruction
stage according to the urban plan of each municipality.
The MIRAIT Group is engaged in a wide range of works
in the coastal areas of Miyagi and Iwate prefectures thatwere devastated by the earthquake and subsequenttsunami, including raising the height of land to a level
able to withstand tsunami impacts, relocating nationalroads, moving communications facilities from their
original locations to where seawalls are to be built, andconducting electrical work for rebuilt buildings andpost-disaster public housing.

I was the Project Manager for the Minamisanriku Town Regional
Wholesale Market in Miyagi Prefecture.
While “reconstruction” is called for loudly by the public,
I actually have never consciously thought of “contributing toreconstruction.” In my view, what I need to do is accomplish mytask as an on-site leader. It then follows as a matter of fact thateverything I do in the Tohoku region leads to reconstruction.
The coastal area of Minamisanriku Town was destroyed by
the tsunami but is gradually beginning to regain vitality. The rebuilt
Regional Wholesale Market is expected to play the central role in
the town’s revitalization.
I will just continue fulfilling my duty because I believe theoutcome of this will be what people call “reconstruction.”

12

MIRAIT Group’s Businesses and Social Responsibility

Safeguarding

Safeguarding Safe and Secure Lives

Sewage Pipe Renewal (SPR) method

Stringing a cable

Renewal of Aging Social Infrastructure
Many of the roads, bridges, tunnels, and other types ofphysical infrastructure in Japan were built intensively
during the country’s rapid economic growth and theiraging is now posing tremendous concern. The percentage
of social infrastructure that has reached the 50-year markis expected to increase significantly within the next 20
years and the country is facing the issue of how thesesimultaneously deteriorating facilities can be maintainedor renewed.
The MIRAIT Group is playing an important role inmaintaining social infrastructure by taking part in the
renewal of utility poles, sewage, and other aging facilities.

■ Present status of aging social infrastructures

Percentage of social infrastructures that have been built
for 50 years or longer
March 2013

March 2023

March 2033

Highway bridges [approx.
400,000 bridges (of approx.
700,000 bridges having abridge length of 2 m or longer)]

18%

43%

67%

Tunnels [approx. 10,000 tunnels]

20%

34%

50%

River management facilities(such as water gates)[approx. 10,000 facilities]

25%

43%

64%

Sewer pipes [total length:
approx. 450,000 km]

2%

9%

24%

Port and harbor quays [approx.
5,000 facilities (4.5 m deep or
deeper)]

8%

32%

58%

Source: Whitepaper on Land, Infrastructure, Transport and Tourism in Japan,
2016, page 38
http://www.mlit.go.jp/hakusyo/mlit/h27/hakusho/h28/pdf/np101200.pdf

Replacement of utility poles

Renewal of aging sewage pipes

Many of Japan’s power and communications lines areoverhead lines built along roads, with about 35 million
utility poles installed nationwide.
Although the undergrounding of lines is progressing
in major cities due to the need for disaster preparedness
and enhancement of urban landscapes, the rate ofundergrounding still remains low compared with that ofmajor cities overseas, and existing utility poles continue
to play an important role in Japan. The MIRAIT Groupis engaged in the replacement of utility poles as wellas the undergrounding of lines to help maintain reliable
information and communications networks.

The MIRAIT Group uses the Sewage Pipe Renewal (SPR)
method as a technique to renew aging sewage pipes.
This method rehabilitates old sewage pipes, turning theminto strong and solid composite pipes by the insertion of
rigid PVC profile. Construction work can be done without
stopping the water flow inside pipes and all the necessary
equipment and materials can be placed through existing
manholes, requiring no road excavation. Existing pipes
can also be made earthquake-resistant with no need for
replacement. Because of these many advantages, themethod is used widely for the renewal of agricultural andindustrial irrigation pipes, among others, as well as sewers.
The standard life cycle of sewage pipes is 50 years
and the service life of pipes built during the rapid
economic development era in Japan is about to expire.
The SPR method, with which pipes can be renewed
without replacing them, is expected to be employed evenmore broadly as a solution to the problem.

Replacing utility
poles on privately
owned land

13 The MIRAIT Group CSR Report 2016

Safeguarding the security of communities: Surveillance camera solutions
Among communities, demand is increasing for surveillance cameras
to monitor schools, routes to and from school, parks, and other public
facilities in order to prevent crime.
To meet this need, the MIRAIT Group offers integrated surveillancecamera solutions encompassing everything from design consulting tofield inspection, construction, and maintenance for indoor surveillance forshared facilities in condominiums, large stores, and other locations usedby the public, as well as for outdoor surveillance.
In this way, we play an important role in safeguarding the securityof communities.

Safeguarding business environments: Customer System Support Center
The MIRAIT Group’s Customer System Support Center (CSSC) offers aone-stop service providing all available network-related solutions, including
proposal, design, development, maintenance, and operation to flexibly
meet the needs of customers.
CSSC is a support center available 24 hours all year round. It responds
to the network breakdowns by dispatching technicians within two hours
from 120 CSSC service locations nationwide.

Safeguarding important information: Next-generation firewall
Network security is a particularly important part of the IT infrastructure that
supports business activities. The MIRAIT Group offers Clavister, a nextgeneration firewall (NGFW) created by Clavister AB, which effectively
protects customers’ important information.
Clavister uses proprietary firmware with minimum vulnerability to ward
off attacks and spam e-mails from third parties. Clavister is also highly
durable as it does not require a hard disk or cooling fan. The MIRAITGroup offers total support from design consultation to installationand maintenance.

The MIRAIT Group will continue working on the
renewal of social infrastructure by mobilizing its
comprehensive engineering capabilities to safeguard
people’s safety and comfort.

14

CSR of the MIRAIT Group/Corporate Governance and Internal Control

CSR of the MIRAIT Group
The MIRAIT Group is promoting CSR across theGroup based on the MIRAIT Way, the principles
that guide the conduct and activities of Group
employees. To be an enterprise that coexists andmutually prospers with both people and society,
the MIRAIT Group establishes effective corporate
governance while fulfilling its CSR through its
business and other activities.

Corporate Governance and Internal Control
CSR Priority Activities

Environment

Increasing environmental risk is a major issue
that undermines the sustainability of planet
Earth, making it an important social issue not justfor Japan but for the entire global community.
The MIRAIT Group positions environmental andsocial innovation as one of the focuses of its
medium-term management plan. Referring toISO 26000 and other guidelines, the MIRAITGroup, as a socially aware public company thatseeks to address social issues, will carry out
environmental initiatives while contributing to theestablishment of environmentally friendly social
infrastructure through its business activities.

Community
vitalization

Rural and regional communities, importantbuilding blocks of society, are facing various
issues, including stagnating economies anddepopulation. The MIRAIT Group’s businessis built upon its close relationships with local
communities and is therefore closely connectedto these social issues. The MIRAIT Group will
maintain close communications with governmentorganizations, its residential neighbors,and other related parties in promoting thedevelopment of social infrastructure for everyday
life and town development to contribute tocommunity vitalization.

Human
resources

A shortage of workers in the constructionindustry is having a serious impact on society.
To ensure it has the flexibility to cope with newsocial issues emerging in recent years, the
MIRAIT Group will develop human resources
with the skills required for driving the Group’sbusiness, including the installation of social
infrastructure, and will promote diversity inthe workplace so as to make the best use ofindividual expertise.

Basic CSR Policy(1)
Continue operating our businesses in a manner that
fulfills the requests and expectations of society andearns longstanding trust from stakeholders.

(2)
Incorporate social issue and environmental issue
management into our business operations andbecome a company with a tremendous capacity toadapt to change.

(3)
Contribute to creating a sustainable society andestablish a strong brand as an admired andvalued company.

■ Major CSR efforts
ISO 26000 core subjects

Major issues

Results in fiscal 2015
• Development of effective organizational systems▲

Organizational
governance

Addressing important Group issues

and mechanisms• Practice of the Corporate Governance Code and continued

improvement efforts• Recruitment of Group company employees, global human▲

Human rights

Promotion of diversity

resources, and older workers• Recruitment of people with disabilities• Increase in the number of women among new graduate hires

Basic approach
MIRAIT Holdings Corporation recognizes the importanceof management as a company with social responsibilities,
implements organizational structures and mechanisms for
ensuring transparency and fairness in decision-making,and positions the creation of relationships of trust with all
stakeholders including shareholders to be one of the mostimportant issues in management.
We aim to improve our corporate value and achievesustainable growth as a “comprehensive engineering &services company” by maintaining effective corporate
governance and making continued improvement efforts.
Corporate governance structure
As a company with a corporate auditors system as definedby the Japanese Companies Act, we have a Board of
Directors, Board of Corporate Auditors, and accounting
auditors to supervise the execution of business.
The Board of Directors includes two independent
outside directors. The Board of Corporate Auditors,
internal audit unit, and accounting auditors also conduct
their respective, independent audits while collaboratingwith each other as necessary.

Objectives for fiscal 2016
• Reinforcement of Group collaboration• Practice of the Corporate Governance Codeand continued improvement efforts• Promotion of workforce diversity and expansion■ Corporate governance structure
Election/Dismissal

General Meeting of Shareholdersof business areas• Upgrading human rights education• Promotion of women’s participation andadvancement in the workplace

Election/Dismissal▲▲

Fair operating practices▲▲

Improvement of service quality▲

Consumer issues

Thorough risk management
and complianceReinforcement of information security

Promotion of community-based
business activities
Promotion of social innovation businesshubs to environmentally considerate ones
• Reduction of waste• Expansion of environmental business toinclude the realization of smart homes, smart
offices, and smart towns• Promotion of energy saving at each office• Reduction of waste and energy consumption• Continued promotion of awareness raising and maintaining• Continued promotion of awareness raising

the enhanced awareness through training• Identification of priority risk issues and addressing themthrough PDCA

and maintaining the enhanced awarenessthrough training• Further sophistication of BCP

Implementation of measures to establish MIRAIT quality• Improvement of risk sensitivity through risk simulation
training and other means• Introduction of fall prevention tools

Collaboration▲

The environment

generation and storage battery systems• Promotion of commercial electric vehicles• Upgrading of buildings used for consolidated business• Promotion of safety quality improvement

activities to establish MIRAIT quality

Board of Corporate Auditors▲

Community involvementand development

innovation business at each site
• Participation by respective offices in local events

development and social innovation ofcommunities (undergrounding of utility cables,
renewal of aging infrastructure, local area antidisaster radio communication systems, etc.)• Implementation of group-wide measures that
contribute to communities

Board of Directors

Collaboration

Internal audit unit
(Audit Office)Supervision

Reporting●●

Strategy Department
Finance and Accounting
Department

Audit/Reporting

Corporate Affairs
Department● M’s Brain Center●

ReportingPresident and CEO(Executive Committee)

Audit• Further expansion of businesses for the• Implementation of community-based business and social

Audit

Instruction

Audit• Expansion of environmental business, e.g., solar power

Reduction of burden upon global
environment
Promotion of environmental businessElection/Dismissal

MIRAIT Holdings

group-wide efforts (Increase in the number ofworkers qualified to implement operations in
rapidly growing areas of business)• Provision of flexible work style options

Accounting auditor▲• Expansion of career paths, implementation of job rotation• Introduction of system for annual paid leave by the hour

Investigation▲

Development of next-generation
leaders and other human resources
Promotion of work-life balance

Effective use of independent directors
The company has elected several independent outside
directors since it was established in 2010 with the
expectation that they will provide advice on promoting
the sustained growth of the company and enhance thecorporate value in the medium to long term, in addition
to presenting opinions based on comments fromstakeholders such as shareholders in meetings of theBoard of Directors.
At present, the company has two independent outside
directors, and an effort is made to provide sufficient
information such as providing explanations in advancedepending on the matter.
The independent outside directors have a good rate ofattendance to meetings of the Board of Directors, and they
actively comment on management policies and management
improvements in addition to supervising the management of
the company based on their respective knowledge.

Policies and procedures in the appointment of directors
and corporate auditors (kansayaku)
In the nomination of director and corporate auditor
candidates, candidates are selected from an extensive
pool inside and outside the company, and the Boardof Directors decides upon candidates with excellent
personal attributes and knowledge in addition to a highlevel of management skills.
In particular, independent outside directors are• Development of human resources throughLabor practices

nominated based on their ability to fulfill their roles andresponsibilities from an expert and objective perspective,
such as having abundant experience and knowledge
in their respective fields, and providing advice andsupervision from the perspective of medium- to long-term
enhancement of corporate value. Moreover, independent
outside corporate auditors are nominated based on theirability to increase transparency of the Board of Directors
and enhance corporate value by appropriately monitoring
the state of compliance with laws, regulations, and the
Articles of Incorporation regarding management decisions
and execution of operations by directors with abundant
experience and knowledge in their respective fields.
The reasons for the election of individual directors andcorporate auditors are described in Notices of the General
Meeting of Shareholders.

Corporate Governance

ReportingInstruction

Supervision of business management

Various committees

Consultation/Reporting

MIRAIT Group companies
Note: For more details on corporate governance, please refer to our Corporate Governance Report available on our website and the Tokyo Stock Exchange website.

15 The MIRAIT Group CSR Report 201616

Corporate Governance and Internal Control■ Reason for election of outside officers
Masaharu Kimura (outside director)
Masaharu Kimura has abundant experience in senior managementof IT companies such as IBM Japan, Ltd. It was determined that heis suited to independently executing the supervision of managementfrom an objective perspective due to his knowledge and expertise as
well as his independence from management performing the executionof business. It is expected that his contribution will help enhance thetransparency and supervisory functions of the Board of Directors.

Eiji Ebinuma (outside director)
Eiji Ebinuma has served in a key position at Mizuho Bank, Ltd., hasexperience and knowledge as an attorney at law, and is independent
from management performing the execution of business. It wasdetermined that he is suited to independently executing thesupervision of management from an objective perspective based ona legal viewpoint. It is expected that his contribution will help enhance
the transparency and supervisory functions of the Board of Directors.

Masao Matsuo (outside corporate auditor)
Masao Matsuo has abundant management experience and knowledge,
such as due to his involvement in the management of NTT Advertising,Inc. He is expected to provide supervision of overall management andeffective advice from an objective and independent perspective.

Hiroshi Daikuya (outside corporate auditor)
Hiroshi Daikuya is registered as a certified public accountant and hasabundant management experience and knowledge, such as serving
as the representative director of management consulting firm @Stream
Corporation. He is expected to provide supervision of overall management
and effective advice from an objective and independent perspective.

Internal control system
Aiming to establish a system to ensure appropriate business
operations by our Group companies, we have formulated
a Basic Policy for the Internal Control System as per the
resolution of the Board of Directors. We have also formulated
Subsidiaries Management Regulations specifying theoperation framework of internal control at our subsidiaries inorder to establish an internal control system for the MIRAITGroup and thus ensure appropriate management.
Internal auditing
Primarily through the Audit Office, we check that internal
audits across the Group are performed properly basedon the unified standard to ensure that internal control isdeveloped and operated satisfactorily throughout the Groupand business operations are improved wherever necessary.
ComplianceTo ensure strict compliance with laws and regulations, theCompliance Regulations were formulated in March 2011.
The Compliance Committee, chaired by the president andCEO, discusses specific related issues and supervises
the progress of compliance promotion activities. To ensure
full awareness of and commitment to good corporate
ethics among employees, the Compliance Manual is
distributed across the Group.
Risk management
Various risks are managed in an appropriate manner
across the Group according to our Risk Management
Regulations, which specify the basic policy and procedures
for risk management for the Group. The Risk Management
Committee, chaired by the president and CEO, discusses
specific issues related to risk management.

17 The MIRAIT Group CSR Report 2016

We also make group-wide efforts to ensure the securityof important information and protect our information assets
by implementing an information security management
system based on the ISO/IEC 27001 standard.
Basic policy against anti-social forces
The MIRAIT Group Charter of Corporate Ethics calls for
employees to steadfastly refuse any association with
anti-social forces posing a threat to the order and safetyof civil society. At the same time, it encourages interaction
with the local communities in which we operate and which
form the basis of our business activities. We observe
the principles of not giving money to, not having any
relationship with, and not fearing anti-social forces, andmaintain our firm stance against them.

Investor Relations
IR activities are important for achieving high levels oftrust and gaining positive evaluations from investors aswell as for ensuring our sustainable growth and the midto long-term improvement of our corporate value as a“comprehensive engineering & services company.” Wecarry out IR activities on an ongoing basis in line with ourdisclosure policy.
At our financial results briefings and for investor
relations outside Japan, the president and CEO of theGroup usually presents our financial results in personin order to promote constructive discussions withshareholders and investors.
Timely disclosure
We publish important information through TDnet (Timely
Disclosure network) and EDINET (Electronic Disclosure forInvestors’ NETwork) for appropriate and timely disclosure.
For broader information disclosure, we also use our
website (http://www.mirait.co.jp/en/) and press releases.
Reference materials for financial results briefings and IR
activities are prepared in such a way as to ensure thatthey are as easy as possible to understand and as helpful
as possible to shareholders and investors.
Initiatives to enhance communication
We hold financial results briefings twice a year for analysts
and institutional investors. Videos of the briefings arealso distributed via our website. For institutional investors
outside Japan, important information is provided in
English in a timely manner. We also send out the MIRAIT
Report, a booklet covering our performance and othertopics, to all shareholders twice a year.
For individual investors, we participate in briefings
organized by securities companies or others to explain
our business and performance.
Inquiries and comments received from shareholders
and investors at financial results briefings, interviews, andother occasions are reported as feedback to key related
personnel within the MIRAIT Group.

Insider information management
To prevent the unfair release of insider information ininterviews with shareholders or investors, we ensure
effective information management according to the Insider
Trading Regulations. To prevent the leaking of financial
results and maintain fairness, we designate two weeks
prior to the announcement of financial results (including
quarterly results) as a “silent period,” during which we
refrain from responding to any comments or questions
about financial results.

Annual shareholders’ meeting
To encourage lively discussions at annual shareholder
meetings and to facilitate the exercising by shareholdersof their voting rights, we send convocation notices toshareholders as early as possible and are introducing online
voting and preparing English (digest) versions of notices.

Messages from outside directors

Continue expanding into new business domains based on
proper risk management and swift decision-making
The MIRAIT Group has been developing at a steady pace in the communications
engineering field. The Group, however, needs to continue further its efforts to expand
into new business domains that will address yet other emerging social issues. These
new domains include cloud services, environment and energy, and social innovation,
demand for which is currently growing fast to meet the needs of globalization and theInternet of Things (IoT). The MIRAIT Group is expected to advance into these new
domains by making the most of its strengths (solid technological capabilities thatsustain communications infrastructure and a nationwide service network).
However, expanding into new business domains inevitably entails risk. Taking a risk
does not just mean actively investing in a new business. Attempting to make correct
decisions based on accurate estimation of the impacts of risk and calculation of longterm return on investment also involves risk. This risk management is indispensablefor the perpetual growth of companies. In these new business domains, wherecompetition is rapidly intensifying, swift decision-making is also an important factor.
From these perspectives, as an outside director, I intend to contribute to swift andcorrect decision-making by capitalizing on my experiences at a global IT company
to realize, among others, the Group’s growth in the new domains, enhancement ofgovernance, and promotion of diversity.

Masaharu Kimura
Outside director
April 2000: Managing Director for Asia
Pacific e-Business Solutions, IBM Japan, Ltd.
January 2001: Managing Director andVice President of Asia Pacific Distribution
Business, IBM Japan, Ltd.
October 2002: President and CEO, IBM
Business Consulting Services (currently IBM
Japan, Ltd.)
June 2004: Managing Director and General
Manager of Sony Enterprise Division, IBM
Japan, Ltd.
June 2007: President and CEO, ACCA
Networks (currently SoftBank Corp.)
April 2010: Director, National Center for Child
Health and Development (to present)
June 2014: Director, MIRAIT Holdings
Corporation (to present)

As a gatekeeper of corporate governance
In May 2015, the government enforced the amended Companies Act of Japan, andin June 2015, the Tokyo Stock Exchange introduced Japan’s Corporate Governance
Code applicable to listed companies. As far as I understand, these were enforced
and introduced due to the realization that corporate governance was not working
sufficiently in Japanese companies and that this was causing low profitability andstagnant stock prices among such companies compared to their foreign counterparts.
In Principle 4.7 of Japan’s Corporate Governance Code, the roles andresponsibilities of independent directors are defined as:(i) Provision of advice on business policies and business improvement based on theirknowledge and experience with the aim to promote sustainable corporate growthand increase corporate value over the mid- to long-term [sic];(ii) Monitoring of the management through important decision-making at the board
including the appointment and dismissal of the senior management;(iii) Monitoring of conflicts of interest between the company and the management orcontrolling shareholders; and(iv) Appropriately representing the views of minority shareholders and otherstakeholders in the boardroom from a standpoint independent of the management
and controlling shareholders.
As an outside independent director with a legal background, I have all these roles
and responsibilities in mind whenever I attend meetings of the Board of Directors.

Eiji Ebinuma
Outside director
April 2002: Assistant Manager of Human
Resources Division Planning Team, Mizuho
Bank, Ltd.
April 2003: Manager of President’s Officeand Manager of General Planning Office,Olympic Co., Ltd.
December 2008: Registered as attorney at law
April 2010: Part-time teacher at Sophia Law
School (to present)
January 2013: Partner of Tanabe & Partners(to present)
April 2014: Member of Toranomon Hospital
Clinical Review Board (to present)
June 2014: Director, MIRAIT Holdings
Corporation (to present)
June 2016: Director, Rakuten Bank, Ltd.
(to present)18

Working Together with Communities for a Prosperous Future

Working Together with Communities for a Prosperous Future
In order for the entire Group to contribute to therealization of a more affluent and comfortablesociety, we are committed to fulfilling our social
responsibilities, respecting human rights at all
times, and coexisting and mutually prosperingwith both people and society.

Planting trees in Miyagi Prefecture

Nine Prefectures and Cities Joint Emergency Drill

Antenna for regional government’s emergency radio communications system

19 The MIRAIT Group CSR Report 2016

Participation in reconstruction
volunteer activities
Miyagi Electrical Construction Association volunteer
activities support reconstruction following the Great East
Japan Earthquake
We participated in Miyagi Electrical Construction
Association volunteer activities conducted in Iwanuma
City, Miyagi Prefecture in May 2015, planting trees torebuild a tidal wetland forest that had been destroyed by
the tsunami that followed the earthquake.
The MIRAIT Group has joined the activities of theassociation for five consecutive years since they were firstlaunched in 2011, taking part in such tasks as creating
flowerbeds at temporary shelters and removing debris
from farmland.

Utilization of abandoned farmland
The increasing amount of abandoned farmland has
recently become a social problem for Japan as weeds,
harmful insects, and wild animals from such land inflictdamage on neighboring farmland. MURAYAMACONSTRUCTION CO., LTD., a business partner of the
MIRAIT Group, grows rice in abandoned paddy fields inTokamachi City, Niigata Prefecture as one of the company’s
community activities. The MIRAIT Group supports thisactivity by sending volunteers from among its employees
to the paddy fields to plant and harvest rice.

Harvesting rice

Supporting communities in their efforts
to address issues

Communication with communities

Comprehensive emergency drill in Okegawa City, Saitama
Prefecture (Nine Prefectures and Cities Joint Emergency Drill)
We participated in a comprehensive emergency drill in
Okegawa City, Saitama Prefecture in August 2015, which
was conducted as part of the Nine Prefectures and Cities
Joint Emergency Drill.
The Nine Prefectures and Cities Joint Emergency Drillis conducted by nine prefectures and cities in the Tokyo
metropolitan area every year with the aim of enhancing
local residents’ awareness of the importance of self-help
and mutual aid at the time of a disaster as well as arming
them with necessary knowledge. The August 2015 drill
simulated a scenario where communications facilities
are damaged in a disaster. Engineers dispatched fromMIRAIT Technologies demonstrated how they could
restore an optical cable connection.

Participation in a project aimed at encouraging children
to dream big
The MIRAIT Group promotes and supports sports. In
November 2015, we sent women’s high jumper andmember of MIRAIT Technologies’ track and field clubMs. Yuki Watanabe to an elementary school in Suita City,
Osaka to give a lesson on high jumping as part of thecity’s project aimed at encouraging children to dream big.
Ms. Watanabe won the women’s high jump at the Japan
National Championships in 2014 and 2015.
In addition to the lesson, Ms. Watanabe also delivered
a talk on why having dreams for the future is so importantand how children can realize their dreams.

Regional governments’ emergency radio
communications system
The emergency radio communications systems ofregional governments communicate evacuation alerts
and other emergency messages from the prefecture/municipality to residents through street speakers in theevent of a natural disaster or other emergency situation.
The systems are currently being converted from analog
to digital throughout Japan to meet the diversification andincreasing sophistication of communication-related needs
and allow the systems to also be used for distributing nonemergency information to residents.
The MIRAIT Group undertakes works for thedevelopment of emergency radio communications
systems for municipalities and prefectures to support
them in securing efficient means of collection andcommunication of information during times of disaster.

Participation in NIPPON IT Charity EKIDEN (Relay Race)
While the IT industry is becoming increasingly important
for the growth of the Japanese economy, it is reported
that many workers in the industry are suffering fromdepression or are socially withdrawn due to economic
and mental stress.
The NIPPON IT Charity EKIDEN (Relay Race) is acharity event aimed at raising money to help such people
who have dropped out of the workforce to return to work.
The MIRAIT Group has co-sponsored the event for six
consecutive years since its launch, while 70 employees(14 teams) from the Group who are motivated to help theirpeers in the same industry took part in the race this year.

Lesson on high jumping

NIPPON IT Charity EKIDEN

Participation in the Toyosu Festa
To work together with local residents to build an evenbetter community, the MIRAIT Group has participated in
the Toyosu Festa, an event organized by Koto City, every
year since relocating our Head Office to the city in 2010.
In fiscal 2015, we offered an air gun game, balloon
art demonstrations, popcorn, and others attractions tocreate opportunities to enhance our communication withlocal residents.

Toyosu Festa

20

Enhancing Customer Service

Enhancing Customer Service
To earn customer satisfaction and trust, we strive
to continuously improve the quality of our services
and provide our customers with the best possible
services as a “comprehensive engineering &services company.”

Quality Management System
All of our Group companies are ISO 9001-certified
for their quality management system, each of whichconstitutes a part of our Integrated Management System.
Based on the recognition that safety, reliability, and trust
are the foundation of our business, we ensure that ourconstruction work and other services are of high quality inaccordance with our Policy on Quality.

Policy on Quality
We will efficiently conduct standardized production
and service activities to provide customers withhigh-quality products and services that meet their
expectations and earn their trust.
● We will promptly respond to customer requests

and adopt applicable legislation and regulations.
● We will seek to enhance product and service

quality as well as construction quality under the“customer first” principle for greater customer
satisfaction and more efficient production andservice operations.
● We will reduce quality risk to maintain andimprove QCD (quality, cost, and delivery).

Tokyo metropolitan area meeting of local business partners and operating companies

21 The MIRAIT Group CSR Report 2016

Continuous Improvement of
the Quality of Services
KAIZEN Convention
We promote KAIZEN activities and total quality management(TQM) to actively collect employee findings and opinions
regarding frontline operations and reflect them in our efforts
to increase operational efficiency and quality.
As part of these activities, we organized the MIRAITGroup KAIZEN Convention in October 2015, where 15
teams made presentations on various subjects such as the
improvement of safety, quality, and operational efficiency.

Initiatives Taken with Business Partners
and Suppliers as well as within the Group
Standardized selection of suppliers
To ensure the quality of engineering works and enhancecustomer satisfaction, suppliers supplying materials,
machinery, and tools used for engineering works are
selected and supervised in accordance with the Quality
Management System Regulations.
Suppliers are also evaluated every year from various
aspects including on-time delivery, quality of products, financial
stability, information security, and environmental sustainability.
Communication with business partners
For the purpose of strengthening understanding andcommunication between our operating companies andbusiness partners, the Partner Association comprising
about 200 business partners was formed to support theirsound management. With the headquarters along with threedivisions, respectively in charge of safety, training ofengineers, and gathering and sharing of management
information, the association conducts a variety of activities
including sharing of information, deliberation on various
matters, and planning and implementation of safety measures.
We also divide Japan into nine regions and holdperiodic meetings in each region for our local operatingcompanies and business partners to share businessplans, information, and others.
Implementation of effective group management
We implement group management in such a way as toenhance the corporate value of the entire Group, develop
business across the Group, and disclose information in atimely and appropriate manner to shareholders and othermajor stakeholders.
We hold a liaison meeting of the corporate
administration staff every year to share information onsuch matters as accounting, legal affairs, and internal
control. M’s Brain Center within MIRAIT Holdings
undertakes all the accounting and payroll operations of
the Group companies. The MINCS (MIrait the NuCleus
business system for producing Synergy) has also been
introduced to enable centralized oversight of accounting,labor management, and other Group administrative
operations and increase their efficiency.

KAIZEN Convention

Continuous Improvement ofTechnological Capabilities
Training of engineers
The Technical College, a training program for employees
selected by each Technology Center and Quality AssuranceCenter, is implemented once a month to further improveparticipants’ skills for the construction of communications
facilities and share the latest technologies. Employees who
have completed the training are expected to fulfill the roleof core engineers at their respective workplaces and shareand pass on their skills and knowledge acquired throughthe training to their colleagues.
Nurturing reliable Project Managers
Project Manager* training is provided to newly appointed
Project Managers and Assistant Project Managers to develop
them into core professionals capable of driving projects.
Engineering works are rapidly increasing in number,decreasing in scale, and diversifying. These trends areboosting the need for Project Managers responsible for theon-site completion of each project to learn various skills
and knowledge required to accomplish a wide varietyof missions. The ultimate objective of the training is todevelop trainees’ ability to view the overall progress of the
project from a broad and multi-level perspective for solidmanagement. The training provides both lecture-style andpractical exercise sessions. The former includes studyof the Project Manager Handbook, which was createdby experienced Project Managers based on their actual
experiences, as well as of the Construction Business Act,
cost control, and budgeting, while the latter includes roleplaying for negotiations, problem-solving, and safety
management.

Technical College

Project Manager training* Project Manager: a supervisory position established by the MIRAIT Group for the
management of each project

Commendation from the Minister of Land, Infrastructure,
Transport and Tourism
In fiscal 2015, Hiroshi Takao from the Kanagawa Branch
Office of MIRAIT Corporation was publicly honored by the
Minister of Land, Infrastructure, Transport and Tourism forexcellence in construction engineering. This honor goes toconstruction engineers who engage directly in construction
on-site, demonstrate remarkable skills, and contributesignificantly to the fostering of younger engineers. Takao
is the 10th in the MIRAIT Group to be awarded the honor,
following another employee honored in fiscal 2014.

Commendation from the Minister of Land, Infrastructure, Transport and Tourism

22Commitments toward Environmental Protection

Commitments toward Environmental Protection
While striving to reduce our energy consumption
and recycle construction materials, we also
actively participate in environmental conservation
activities and promote environmental businesses
with the goal of preserving a healthy, sound planet
for future generations.

Policy on the Environment

Environmental Management System
All of our Group companies are ISO 14001-certified fortheir environmental management system. We conductvarious environmental conservation activities at eachlocation to minimize our impact on the global environment.

Reduction of Environmental Impact

As an upstanding corporate citizen, we will pursue
activities for protecting the global environment
through our daily operations and contribute to thecreation of a more affluent and comfortable society.
● We will comply with legislation and regulations

regarding environmental protection, such as the
Act on the Rational Use of Energy and the Waste
Management and Public Cleansing Act, and work
to reduce our impact on the environment andprevent pollution.
● We will implement appropriate risk assessment

measures to reduce environmental risk andconduct effective environmental activities.
● All MIRAIT Group employees will seek to increase

their awareness of environmental protection andactively endeavor to pass on a healthy global
environment to future generations.

Energy conservation at Technology Centers
Electricity constitutes a large part of the energy used at offices.
We therefore exert group-wide efforts to save electricity.
MIRAIT Corporation’s Tochigi Technology Center
converted its lighting systems to LED, while MIRAITTechnologies’ new Takasaki and Kumagaya Technology
Centers established in 2015 are equipped with a rooftop
solar power generation system and an electricity demand
monitoring system as well as LED lighting fixtures as partof their efforts to save electricity.
Systematic environmental management
We measure, among others, the quantities of paper andnon-industrial and industrial waste generated; the volumeof electricity, gasoline, light oil, and other fuels consumed;
and the amount of money spent for green purchasing
every month, and use these data in our efforts to reduce
waste and energy consumption.
In summer and winter, when the consumption ofelectricity increases, we conduct an energy-saving
campaign that calls for each workplace to set and work
toward achieving a target.
Recycling of steel strand wire rope drums
The telecommunications industry is promoting the recyclingof steel strand wire rope drums, which have heretofore
been disposed of after use in construction works.
The MIRAIT Group is supporting this industry-wide
effort by converting from wooden drums, which havetraditionally been discarded after use and therefore havebeen posing a problem in terms of environmental impact
and disposal costs, to recyclable drums. This has been a
gradual effort starting in 2008. We have mostly completed
the conversion, with the exception of some drums ofcertain sizes.

Recyclable drums

Environmental Conservation Activities

Kurumatsukuri Forest

23 The MIRAIT Group CSR Report 2016

Participation in greening programs
We have been participating in the activities of Osaka
Green Trust since 2003 to protect satoyama (traditional
rural landscapes of Japan) by soliciting volunteers fromthe Group and its business partners. In 2015, we also took
part in a project to protect trees that have been plantedin the Kurumatsukuri Forest in Ibaraki City, Osaka, which
involves mowing bamboo grass and thinning the forest.
Through these activities, we contribute to the conservationof natural biodiversity as well as to the creation of lushand pleasant environments.

Community cleanup
The MIRAIT Group conducts clean-up activities in various
communities as part of its efforts for environmental
conservation and the betterment of communities.
These activities include clearing of garbage and waste
washed ashore on the Inage-no-Hama artificial beach within
the Inage Seaside Park in Chiba Prefecture, as well as
cleanups in areas along the Meguro river in Shinagawa City,
Tokyo, which we have been doing every year since 2003.
Our Group company Daimei Tusan Corporation
designates the 23rd of every month as 23 (“tu-san”) Day(where “23” can be read as “tu-san” in Japanese) andcleans up the areas around its Head Office in Koto City,
Tokyo on that day. We also conduct cleanups at many of
our other locations to conserve the local environments.

23 Day cleanup

Environmental Businesses
Participation in a Micro Mobility demonstration test
During the period under review, we participated in a Micro
Mobility demonstration test conducted as part of Koto City’s
Toyosu Green Eco-Island low-carbon urban development
plan. In the demonstration test, we adopted Micro Mobility
electric vehicles, a new means of short-distance transportationthat is considered effective for reducing CO2 emissions,as company cars used by employees. We are currently
examining potential business opportunities by analyzing datafrom the vehicle loan management system and GPS as wellas questionnaire results.
Residential storage battery systems
We provide storage battery systems for use in detachedhouses that store electricity at night and use it during
the daytime to reduce the household electricity bill. The
systems can be linked to an electric company’s grid or torooftop solar panels and used as an emergency backup
power source. A maintenance service that monitors theconditions of each system 24/7/365 through our networkis also available.
Participation in a wide-area wireless sensor network
demonstration test
The development of a new wide-area wireless network
system that uses a frequency in the 280 MHz band iscurrently in progress in Japan to meet the growing demandfor Internet of Things (IoT) and Machine-to-Machine (MtoM)
technologies, which are expected to expand rapidly in thenear future. Because the system allows for the coexistenceof multiple sensor networks, it is expected that it will lead tolower cost services and facilitate the utilization of data fromsmart meters for utilities such as electricity, gas, and water.
We started a demonstration test on the new system
in Koto City, Tokyo in May 2015, and also started ademonstration test on smart meters for water in 2016 in
partnership with Kobe City, NTT West, and Sensus Japan.
We aim to play our role as a provider of engineering andservices for the success of sustainable “smart town”
projects featuring various environmental considerations
such as effective energy conservation and enhancedenergy efficiency based on home energy management
systems (HEMS).

Micro Mobility

A house equipped with a storage battery system

Water smart meter

280 MHz band demonstration test antenna24

Creating Workplaces Where Employees Can Work with Enthusiasm

Creating Workplaces Where Employees Can Work with Enthusiasm—Promotion of Diversity

We will place top priority on safety while seeking to secure
the safety and health of all MIRAIT Group employees andproviding a comfortable work environment.
● We will comply with applicable legislation andregulations regarding occupational safety and health.
● We will promptly reduce or eliminate occupationalsafety and health risks in our business operations
by effectively assessing current risks andanticipating potential risks.
● All MIRAIT Group employees will strive to learn

about occupational safety and health from eachother and work in concert to ensure workplacesafety and security.

Promotion of Safety and Healthat Workplaces
MIRAIT Group Safety Convention
During National Safety Week in July as designated by
Japan’s Ministry of Health, Labour and Welfare, wehold the MIRAIT Group Safety Convention every year toenhance employees’ safety awareness. In fiscal 2015, we
held the convention on July 8 in Osaka and on July 23 in
Tokyo, in which the Group’s safety policy and employees’safety management activities were presented and a safety
lecture was given by a guest speaker.

Training simulating a wet roof in rainy conditions

Healthcare of employees
As part of our efforts to help employees maintain theirhealth, we provide periodic health checkups for all
employees and “Ningen Dock” complete medical
checkups for employees of certain ages, as well as heathconsultation services, so that employees can understandtheir health condition, prevent lifestyle diseases, anddiscover any hidden diseases.
We also offer opportunities for personal refreshment at
our recreation facilities located in various places in Japan
as well as for health improvement through walking rally andother events organized by our health insurance society.
Mental health
The Stress Check Program was established by the Ministryof Health, Labour and Welfare in December 2015 tomandate all workplaces with 50 or more employees toassess the level of mental stress of each employee at least
once a year. Intended to serve as the primary prevention
measure for (and proactive measure against) mental
disorders before they occur, its aim is to improve employee
health and make workplaces more comfortable. The MIRAITGroup conducted stress checks in November 2015 before
they were mandated and improved consultation services tosystematically address the issue of employee mental health.

Mentoring program
For each new employee, an experienced co-worker who is not
the new employee’s supervisor is appointed as a mentor. The
mentor offers guidance and consultation, gets the mentee tolearn about their work through dialogue, and gives advice insuch a way as to promote the mentee’s autonomous growth.
More specifically, the mentor gives feedback to the mentee
upon receiving a periodic report and meets the mentee every
month. This mentoring program works not only for the growthof the mentee but also helps develop the leadership skills of
the mentor.

Enhanced training environment
The MIRAIT Group’s human resources development starts
with induction training for new recruits and thereafter offers
a wide range of training for different job grades up to the
executive level to help employees acquire necessary skills
and knowledge according to their current role or career stage.
Our training program geared toward new recruits is designed
in such a way that they can develop their capabilities
regardless of their career path, whether engineering, clerical,
or administrative. The career field-specific training programsupports trainees to obtain various qualifications and evenoffers monetary incentives depending on the level of difficulty.

■ Mentoring support

Well-equipped training facilities
Our training centers such as the Ichikawa Training Center in
Ichikawa City, Chiba Prefecture and the Kansai Hyper Techno
Port in Kobe City, Hyogo Prefecture are equipped with avariety of training equipment used for engineer training anddevelopment of technical skills. In these facilities, new recruits
as well as experienced workers strive day after day to develop
their technological expertise and ability to propose solutions
that match the needs of customers, so as to contribute tomeeting the requirements of society and the times.

Supervisor/
experienced employees

MentorTechnical training/
guidance
Mentoring support

New employee (mentee)■ Human resources development at the MIRAIT Group
Solidify and vitalize the human resources foundation to produce individuals capable ofsupporting the expansion of business domains and business transformation
Expand the scope of business
Vitalize the organization
Enhance productivity
Enhanced training environment

Growth through personnel management
Experience different corporate culturesand diverse operations

Promote interaction
with different industries

Business headquarters, etc.
Promote interchangeof personnel

Within/outside Group

Branch offices

Recruitment of diverse human resources
New graduates

Mid-career
personnel

Development ofmultiple skills
Women

Older people

Position-specifictraining program

Policy on Occupational Safety and Health

Risk simulation training
Falls are the greatest cause of fatal construction accidents inJapan, accounting for about 40% of the total every year. With
the aim of reducing fall accidents to zero, the MIRAIT Group
provides risk simulation training to employees of the Groupand its business partners using facilities that allow them tohave simulated experiences of various types of accidents.
Through experiencing fall accidents, for example, trainees
can learn basic necessary preventive actions and reaffirm theimportance of using fall protection devices, thereby raising theirsafety awareness. In fiscal 2015, the training was conducted ineight locations. We are planning to expand the training to more
locations and to include more types of accidents.

Self-development

All of our Group companies are OHSAS 18001-certified
for their occupational safety and health management
systems. Regarding safety, reliability, and the trust of ourcustomers as forming the foundation of our business, weformulated the Policy on Occupational Safety and Healthto create a safe and comfortable work environment.

Solidification and vitalization of our human resources foundation
The MIRAIT Group positions human resources development
as one of its key themes. Based on this stance, we haveintroduced a new human resources development systemcomprising a career field-specific training program, whichhelps employees improve their expertise required for theirrespective areas of business, and a position-specific training
program, which helps employees acquire necessary skills
and knowledge according to their current role or career
stage. The system is used to support the growth of individual
employees in order to systematically solidify our humanresources foundation to produce individuals capable ofpromoting our future business development.

Career field-specifictraining program

Occupational Safety and HealthManagement System

Employee performance review
Our new performance-based employee evaluation systemtakes into account the expected role of each employee inbusiness operations, the degree to which the role is fulfilled,
and specific activities performed during the process.
The employee performance review attaches
importance to communication between employees andtheir supervisors. Each employee has a discussion
with their supervisor to set their targets based on afull understanding of how they are positioned in theorganization and why achieving the targets is so important
for them. Each employee is thus motivated to achieve thetargets and guided to be creative and autonomous in theirwork and continuously improve themselves, while theirprogress is monitored using standardized procedures.

Development of Human Resources
Capable of Promoting Our BusinessTransformation

Evaluation/
Appointment

We create and maintain safe and comfortableworkplaces while promoting the development of acorporate climate where individuality is respected
and all employees can play an active part by
exercising their abilities to the fullest.

Ensuring employees’ safety in the event of a disasterTo prepare for an earthquake and other large-scaledisasters and raise our employees’ awareness on disaster
preparedness, all employees are provided with a pocket
manual that covers emergency action principles, how to
confirm the safety of each other, how to gather information
about the disaster, and other tips.
To keep employees alert to the possibility of disaster at
all times, we also call for them to confirm with their family how
to contact one another and to investigate walkable routes
home before a disaster occurs. We also conduct training on
the use of our system to confirm the safety of employees.

Support from the company

MIRAIT Group Safety Convention

25 The MIRAIT Group CSR Report 201626

Creating Workplaces Where Employees Can Work with Enthusiasm

Creating Workplaces Where a Diverse
Group of Workers Can Play an Active Role
We are promoting the development of a corporate climate
where individuality is respected and all employees canwork to their full potential, regardless of age, gender,
nationality, or disability.
The empowerment of female employees is aparticularly important focus for us, and we are enhancing
working environments and providing various career paths
and opportunities for women so that they can play a more
active role in their workplaces.
Empowerment of female employees
We are creating opportunities for female employees to work
to their full potential in a wide range of business areas anddevelop their career by formulating and implementing actionplans. While analyzing the issues that need to be addressed,
each Group company has set its own goals, most of which
involve increasing the percentage of women among new
recruits and among employees in managerial positions, aswell as expanding job categories for women. We are also
making efforts to create workplace environments that are
amenable to all, even those with young children and thoseneeding nursing care, and to improve work-life balance.

Work-life balance
The MIRAIT Group promotes work-life balance to realize
environments where employees can fully enjoy boththeir work and private life and to elicit their best possible
performance. These efforts include the designationof “no overtime days” and encouraging employees toleave work on time, and are aimed at not just promoting
work-life balance but also supporting employees’ healthmanagement and accelerating the empowerment offemale employees. We are also working to increase theoperational efficiency of employees through KAIZEN
activities at each workplace in order to reduce overall
working hours.
In fiscal 2015, we conducted an employee satisfaction
survey targeted at all employees. We are currently
examining measures for improvement based on theanalyzed results of the survey. We also started inviting
outside experts in various areas to give lectures to
employees to introduce diverse role models and promote
networking among participants.

Pre-childbirth period● Hospital visits for medical checkups (half-day or

one-day basis)● Short working hours (reduced by up to 2 hours a day)Maternity leave
Before childbirth: 6 weeks After childbirth: 8 weeks<Paid leave period>
Before childbirth: 6 weeks After childbirth: 6 weeks

Enjoying having both a career
and a childThanks to the support from everyone
surrounding me, I can feel a kind ofwork-family synergy. I want to contributeto society as well as to the company bymaking the most of both my work andfamily experiences.

Spouse’s childbirth leave
2 days at the time of the employee’s spouse’s childbirth(available for employees of the Group and its
business partners)

Childcare leave
Available for employees with a childup to 3 years old

Short working hours for childcare
Available for employees with a child up to third grade(reduced by up to 2 hours a day)

Sachie Tominaga

Manager
Office System Division
System Integration Business Headquarters
MIRAIT Corporation

Babysitter subsidy
Discount coupons for babysitter costs available for
employees with a child up to third grade upon request

Opportunities to work for mature and retired personnel
As Japan is facing the two issues of a declining birthrate andan aging population, we have raised the retirement age to
62 and offer reemployment to those who wish to work after
retirement in order to retain experienced, qualified personnel
with high-level telecommunications construction skills.
We also offer life planning seminars for employees
above a certain age to give tips on how to work during
employment extension periods, how to create a financial
plan, and other matters.
Global development of human resources
The MIRAIT Group currently operates five overseas
business locations, mainly in the Asia Pacific region,
employing enthusiastic locally hired personnel. To ensurethat all local employees can work to their full potential, we
make various efforts including enhancing overall technicalskills through mutual support among the overseas
locations, such as dispatching trainers, as well as offering
Japanese language classes to improve their language
skills for working at a Japanese company.

■ Childbirth and childcare support system

Sick/injured childcare leave
Available for employees with a child up to fourth grade(up to 5 days [10 days for employees with
2 or more children] a year)

Note: Employees on childcare leave are informed of updates about their company
regularly and given opportunities to meet with their supervisor and other
employees who have returned to work after childcare leave in order toensure their smooth reinstatement.

Balancing career with childcare/family care
To allow employees to work with peace of mind for many
years, we offer various support systems that can be used
for childbirth, childcare, family care, and other personal
life needs, such as childcare leave and short working
hours for parents with children up to three years old and
up to third grade, respectively. The systems offered by
us are more generous than the legal requirements. As ofthe end of March 2016, a full 100% of female employees
have taken childcare leave since the MIRAIT Group wasestablished in October 2012.
In September 2015, MIRAIT Corporation was awarded
the “Kurumin” mark, a certification provided by the
Ministry of Health, Labor and Welfare in recognition of thecompany’s efforts to support child rearing by employees.

Kurumin■ Family care leave and other support systems
SystemDetails

Long-term family care leave

Employees with one or more family
members requiring nursing care may takeleave for a period of one month to one
year per such family member.

Family care leave

Employees who need to care for a family
member requiring nursing care may takepaid leave for up to 5 days a year in thecase of one such family member, or for up
to 10 days a year in the case of 2 or moresuch family members, on a half-day basis.

Paid leave reserve system

Employees may reserve their unused
annual paid leave up to 5 days a year
so that they can use it to participate involunteer activities, take care of a family
member who is injured or ill or requires
nursing care, have a maternity medical
checkup, receive fertility treatment, lookafter a child while their wife gives birth toanother child, or for other certain purposes.

Annual paid leave by
the hour system

Employees may take annual paid leaveby the hour for up to a maximum of 5 daysout of their total number of annual paid
leave days.

I’m in charge of installation, operation, andmanagement of internal systems. I took maternity
and childcare leave four years ago. It was aroundthe time I was appointed to a managerial position,
and while I was eager to continue pursuing myown self-development and supporting younger
workers in their skills development to contributeeven more to the company, I was very concerned
about whether I could really balance a careerand family. But thanks to the company’s support
systems and cooperation from my co-workers, I
was able to return to work and am working as I
did before. I normally leave the office on time topick up my child from daycare and sometimes
have to take a day off when my child becomes ill
suddenly. So I try to do my work as efficiently as
possible when in the office—and utilize remote
access when necessary—in order to achieve abalance between work and family. The available
systems, such as annual leave by the hour, which
I use when I need to take my child to hospital,
are generous and useful. But above all is thekindness and cooperation of my supervisor
and co-workers: among other things, they try
to keep meetings short and make schedule
adjustments for me. They are very supportiveand I truly appreciate them. Going forward, I
want to contribute to society as well as to thecompany in a wide range of aspects by making
the most of my experiences gained through myinteraction with people in the different situations
and standpoints I have come to as a mother.

Engineer training at the local subsidiary in Australia

27 The MIRAIT Group CSR Report 201628

Financial Data

Financial Data
We strive to maintain a sound financial footing and make accurate financial information promptly available byvarious means including via our website and brochures. By doing so, we hope that our Group will continue tobe a corporate organization that is supported and trusted by society.

Orders received/Net sales
Orders received

Gross profit(billion yen)
300

278.1

271.0

282.0 277.7

Total assets/Net assets

Gross profit/Gross profit margin

Net sales

293.6

Total assets

Gross profit margin(%)(billion yen)
283.7
260.7

50

269.5

15

40

240

10.8

10.8

12

30

29.9

29.3

9

25.8

194.9

192.7

200

(billion yen)

(%)

150

100
122.8

120

160

120

Capital-to-asset ratio

175.9

9.6

33.1
180

Own capital(billion yen)
172.7

11.7

Own capital/Capital-to-asset ratio

Net assets

126.1

114.1

106.6

126.5

122.9

80

110.8

103.6

63.1

90

63.0

60.0

63.8

60

120

20

6

80

60

40

60

10

3

40

30

20

0

0
2012

2013

2014

2012

2015 (FY)

SG&A ratio

Operating income(billion yen)

(%)

25

20

18.4
6.7

15

19.7

18.9

18.5

6.8

7.3

5
0
2013

2014

15

8

12

6

9

4

6

2

3

0

0

2015 (FY)Net income

(%)
10

11.4

10.8

8

9
5.2

4.4

2.3

2013

2014

2015 (FY)

0
2012

(FY)

2013

2014

2015 (FY)

30

30

2014

2015 (FY)Dividend per share

(%)

10

10

8

8

(yen)

9.5

30

6

6

4

4

20

20

2

0

3.0

2012

2013

10

2
0

0
2012

2013

2014

2015 (FY)Dividend payout ratio

Total return ratio

Net income ratio(billion yen)
12

(%)
6

11.1

10

(%)

(%)

80

80
67.2

5
60

4

3

4
2

0

0

29 The MIRAIT Group CSR Report 2016

2015

4.1

6.1

2014

7.1

2015 (FY)

3
3.6
1.5

2014

2015 (FY)

40
22.9

36.7
22.0

22.0

20

20

1
0

2013

39.2

39.2

2
1.3

0
2012

40

2.6

4.2

2

60

4

3.9

6

2.5

2013

5.0

4.1

4.0

6
6.7

6

2012

2014

6.7

8

4.3

2013

67.2

12.2

11.7

2012

(%)

Net income/Net income ratio

14.8

15

0

0

Return on equity (ROE)

14.1

2012

Ordinary income ratio(billion yen)

120Operating income ratio(billion yen)

10

Ordinary income/Ordinary income ratio
Ordinary income

2015 (FY)

20

6.7

10

2012

2014

Operating income/Operating income ratio

SG&A/SG&A ratio
SG&A

2013

0

0
2012

2013

2014

2015 (FY)

2012

2013

2014

2015 (FY)30

Financial Data

Note: Please see our website (http://www.mirait.co.jp/en/) for the latest information.

Net assets per share

Net income per share

(yen)

(yen)

1,800

150
1,510.5

1,500

Shareholders■ Shares136.5

1,511.7

1,362.6

120

1,257.7

As of March 31, 2016

1,200

87.3

90
900

330,000,000

Total outstanding shares

85,381,866 (including 4,050,696 treasury shares)

Number of holders of shares

24,055(excluding treasury shares)

51.0

60

Total authorized shares

44.6

600
30

300
0

2012

2013

2014

0

2015 (FY)

2012

2013

2014

2015 (FY)■ Major shareholders
Name

Capital investment/Depreciation
Capital investment

Cash and equivalents/Interest bearing debt

Depreciation

Cash and equivalents(billion yen)(billion yen)

4
3.2

28.7

25
2.4

2.2

29.1
28.9

2.9
2.5

Net cash

29.2

30

3.7
3.2

3

Interest bearing debt

2.4

20

2

15

16.7
13.9

16.2
12.9

10

0

2012

2013

2014

1.0

0

2015 (FY)2012

Ownership (%)

162,360

19.96

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

31,367

3.86

Japan Trustee Services Bank, Ltd. (Trust Account)

27,593

3.39

Sumitomo Densetsu Co., Ltd.

24,886

3.06

CBNY-GOVERNMENT OF NORWAY

21,137

2.60

BBH FOR FIDELITY LOW-PRICED STOCK FUND (PRINCIPAL ALL SECTOR SUBPORTFOLIO)

16,758

2.06

STATE STREET BANK AND TRUST COMPANY 505001

13,555

1.67

THE BANK OF NEW YORK, TREATY JASDEC ACCOUNT

13,3701.64

MIRAIT Holdings employee stock option plan

12,593

1.55

Japan Trustee Services Bank, Ltd. (Trust Account 9)12,473

1.53

Notes
1. Ownership is calculated by excluding 4,050,696 treasury shares.
2. Number of shares held is rounded down to the nearest 100, while ownership is rounded off to two decimal places.

15

Number of shares held (in hundreds)

Sumitomo Electric Industries, Ltd.

0.5

0.3

2013

2014

0.4
2015 (FY)■ Share distribution by owner (excluding treasury shares)
Number of shares by owner(Shares)(%)(Persons)(%)

18,468,418

22.7

Financial institutions

44

0.2

755,509

0.9

Financial instruments business
operators

29

0.1

Other corporations in Japan

25,238,618

31.0

Other corporations in Japan

318

1.3

Foreign corporations, etc.

20,624,808

25.4

Foreign corporations, etc.

185

0.8

Individuals/other

16,243,817

20.0

Individuals/other

23,479

97.6

Total

81,331,170

100.0

Total

24,055

100.0

Financial institutions

Cash flow
Operating cash flow

Investment cash flow

Financial cash flow

Financial instruments business
operators

Free cash flow

(billion yen)
18.6

20

14.8

15

Number of shares by owner

9.0

10

6.3

6.2

5

2.6

0
-1.6 -1.5

-5

-3.1

2012

31 The MIRAIT Group CSR Report 2016

-2.4

-2.7
2013

-2.2

-3.8
-3.5

2014

-3.6

-2.6
2015

(FY)

32

Overview of the Group

Overview of the Group
Overview of MIRAIT Holdings
Date of establishment

October 1, 2010

Capital7 billion yen

President and Chief
Executive Officer

Masatoshi Suzuki

Total outstanding shares

85,381,866

Stock Listing

1st Section of Tokyo Stock Exchange(Security code: 1417)

Major business locations
Number of consolidated
subsidiaries

35

Number of employees

Consolidated: 7,295
MIRAIT Holdings: 102
MIRAIT:
4,333 (consolidated), 2,583 (non-consolidated)
MIRAIT Technologies:
2,860 (consolidated), 916 (non-consolidated)(as of March 31, 2016)(as of March 31, 2016)

Ratings

Rating and Investment Information, Inc. (R&I): AJapan Credit Rating Agency, Ltd. (JCR): A

Location

5-6-36, Toyosu, Koto-ku, Tokyo

Sri Lanka
DAIMEI SLK (Private)
LIMITED

MyanmarMarch 31

Term-end

MIRAIT Technologies

Hokkaido

Myanmar Co., Ltd.

● Hokkaido Branch Office

The Philippines■ Milestones of the MIRAIT GroupMIRAIT
PHILIPPINES INC.
Management integration of the three companies by
establishing a holding company in October 2010MIRAIT Holdings
1946

1974

Daimei Denwa Kogyo
Corp. established

Listed on the First Section of
the Tokyo Stock Exchange

1984

1995

Merged with Daimei
Densetsu Kogyo Corp.

DAIMEI TELECOM
ENGINEERING

Merged with Suzuden Corp. and changed nameto DAIMEI TELECOM ENGINEERING CORP.

1946

1973

1992

2009

Toyo Denki Tsushin
Kogyo established

Listed on the First Section of
the Tokyo Stock Exchange

Changed name to
TODENTSU Corporation

Merged with Toei
Densetsu Kogyo

Singapore● Asia Pacific OfficeKansaiChubu● Nishinihon Branch Office● Kyoto Branch Office● Hyogo Branch Office● Head Office● Kansai Branch Office● Kyoto Branch Office● Osaka Branch Office● Hyogo Branch Office● Nara Branch Office● Wakayama Branch Office● Shinetsu Branch Office● Tokai Branch Office● Hokuriku Branch Office● Numazu Sales Office● Nagoya Branch Office

Tohoku● Tohoku Branch Office● Fukushima Branch Office

Kanto● Head Office● Tochigi Branch Office● Ibaraki Branch Office● Chiba Branch Office● Kanagawa Branch Office● Saitama Sales Office● Minato Sales Office● Shinagawa Sales Office● Tokyo Branch Office● Gunma Branch Office● Saitama Branch OfficeMirait Singapore Pte. Ltd.
DAIMEI and TODENTSU
merged in October 2012

Chugoku

Lantrovision(S) Ltd.

●MIRAIT● Chugoku Branch Office

TODENTSU

1960

2000

Changed name in
October 2012

2001

Commuture
Kinki Tsushin Kensetsu established

Listed on the First Section of the Tokyo
Stock Exchange and the First Section of
the Osaka Securities Exchange

Merged with JCOS Co., Ltd. andchanged name to Commuture Corp.

Australia
MIRAIT Technologies
Australia Pty. Ltd.

MIRAIT
Technologies

Shikoku

MIRAIT Group companies● Shikoku Branch Office

Okinawa●● Okinawa Branch Office

KyushuThe meaning behind our nameMIRAI T > Future

We aspire to become a comprehensive engineering & services company that
continues to grow with our customers. We hope our metaphorical light of hope will
shine brightly, illuminating the way ahead, and will continue traveling toward the future.
Such aspiration is expressed in a simple and straightforward way in our corporate
name, MIRAIT—the combination of MIRAI (future) and IT (information technology).

Corporate markThe three bold lines symbolize our Three Objectives. The gold arch stretchingacross the lines represents the global reach of our high-quality businesses.
The overall mark forms the letter “M.” The mark is a symbol that represents the
direction of the MIRAIT Group, which is cultivating our “Mirai” (future).

●● Kyushu Branch Office

MIRAI T > Information Technology> Integration Technology● MIRAIT Corporation

Group companies● MIRAIT Technologies Corporation

Consolidated subsidiaries and overseas subsidiaries

MIRAIT Holdings Corporation

Three Objectives

MIRAIT Corporation

MIRAIT-X Corporation

MIRAIT Technologies Corporation

Nara Kensetsu Co., Ltd.

M’s Frontier Corporation

DAIMEI SLK (PVT) LIMITEDAST-ENG Corp.

Practical Solutions Inc.

DAIMEI TECHNO CO., LTD.

Todentsu Access Corp.

Ligare Co., Ltd.

ACTIS Corporation> Expanding to cover upstream to downstream (planning anddesign, construction, maintenance and operation, etc.)

KOKKO SYSTEMS CO., LTD.

TODENTSU Network Corp.

COTONET ENGINEERING Co., Ltd.

Kinki Denki Corp.

Tohoken System Engineering Corp.

Nissetsu Co., Ltd.

Comlead Co., Ltd.

2

Meisei Correspondence Co., Ltd.

Okisokou Co., Ltd.

MIRAIT Information Systems Co., Ltd.

MIRAIT Technologies Australia Pty. Ltd.
(Australia)

IP Nisshin Tsuko Co., Ltd.

Libnet Corporation

Ground Create Co., Ltd.

DAIMEI NETWORK CO., LTD.

TIMETEC Co., Ltd.

Agility RISE Co., Ltd.

DAIMEI TSUSAN CORP.

Trust System Corporation

Fucom Corp.

1

Expanding the breadth of our business

Expanding the depth of our business to
the greatest extent possible> Proposing a total solution covering NI, upper layers, and lower layers

3

Developing new business fields> Contributing to the creation of future social infrastructure which
integrates electricity, the environment, energy, and other fields

MIRAIT Technologies Myanmar Co., Ltd.
(Myanmar)
MIRAIT PHILIPPINES INC. (Philippines)

SINKO ELECTRIC CORP.

Lapisnet Co., Ltd.

Mirait Singapore Pte. Ltd.

DAIMEI BUSINESSMATE CORP.

MIS Kyushu Corp.

Lantrovision(S) Ltd. (Singapore)

KATAKURA CONSTRUCTION Co., Ltd.

(20 Lantrovision(S) Ltd. group companies)

As of July 31, 2016

33 The MIRAIT Group CSR Report 201634