Consolidated Financial Results
for the Fiscal Year Ended March 31, 2022
[Japanese GAAP]May 13, 2022
Company name: MIRAIT Holdings Corporation
Stock exchange listing: TSE
Code number: 1417
URL: https://www.mirait.co.jp/
Representative: Toshiki Nakayama, President and CEO
Contact: Masakazu Tsukamoto, Director and CFO
Phone: +81-3-6807-3124
Scheduled date of Ordinary General Meeting of Shareholders: June 14, 2022
Scheduled date of commencing dividend payments: June 15, 2022
Scheduled date of filing annual securities report: June 15, 2022
Availability of supplementary briefing material on annual results: available
Schedule of quarterly results briefing session: scheduled (for analysts and institutional investors)(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 to March 31, 2022)(1) Consolidated Operating Results(% indicates changes from the previous period.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
million yen

Fiscal year ended
470,385
March 31, 2022
Fiscal year ended
463,744
March 31, 2021
(Note)
Comprehensive income:%million yen%

million yen%

million yen%

1.4

32,8048.9

34,152

7.6

25,1634.0

5.1

30,12937.0

31,73936.8

24,20559.0

Fiscal year ended March 31, 2022: 25,469 million yen (1.3%)
Fiscal year ended March 31, 2021: 25,138 million yen (46.5%)

Net income per share

Diluted net
income per
share

yen

yen

Fiscal year ended
250.84
March 31, 2022
Fiscal year ended
229.59March 31, 2021
(Reference)
Equity in earnings (losses) of affiliated companies:(2) Consolidated Financial Position
Total assets

%

%

–

10.7

8.6

7.0

–

11.0

8.9

6.5

Fiscal year ended March 31, 2022: 206 million yen
Fiscal year ended March 31, 2021: (164) million yen

Equity ratio

Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2021

Net assets per share

million yen

Fiscal Year Ended
432,683
249,237
March 31, 2022
Fiscal Year Ended
358,751
231,323
March 31, 2021
(Reference)
Equity:Fiscal year ended March 31, 2022: 242,120 million yen
Fiscal year ended March 31, 2021: 226,389 million yen(3) Consolidated Cash FlowsNet cash provided by(used in) operating
activities

Operatingincome to net
sales

%

Net assets

million yen

Ordinary
income to total
assetsReturn on
equityNet cash provided by(used in) investing
activities

%

yen

56.0

2,446.54

63.1

2,232.25

Net cash provided by(used in) financing
activities

Cash and cash equivalents
at end of period

million yen

million yen

million yen

million yen

12,972(46,204)

38,395

48,901

41,602

1,869(32,200)

42,851

2. Dividends
Annual dividends per share
1st

2nd
3rd
quarter-end quarter-end quarter-end
yen

Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023
(Forecast)yen

Year-end

Total

yen

yen

yen

Total
dividends

Payout ratio(consolidated)

Dividends to
net assets(consolidated)

million yen

%

%

―

22.50

―

22.50

45.00

4,717

19.6

2.1

―

25.00

―

30.00

55.00

5,490

21.9

2.4

―

30.00

―

30.00

60.00

29.5

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating income
Ordinary income
Net income per shareowners of parent
million yen

Full year

540,000% million yen

14.8

30,000% million yen(8.5)

31,000% million yen(9.2)

20,000%(20.5)

yen

203.48* Notes:(1) Changes in significant subsidiaries during the period under review: Yes(Changes in specified subsidiaries associated with changes in the scope of consolidation)
Addition: 1 company (Name) Seibu Construction Co. Ltd(2) Changes in accounting policies, changes in accounting estimates and corrections of errors
1) Changes in accounting policies due to the revision of accounting standards, etc.: Yes
2) Any changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Corrections of errors: None
(3) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury stock):
March 31, 2022

108,325,329 shares

March 31, 2021

108,325,329 shares

March 31, 2021

6,907,718 shares

March 31, 2021

105,429,897 shares2) Total number of treasury stock at the end of the period:
March 31, 2022

9,360,821 shares

3) Average number of shares outstanding during the period:
March 31, 2022

100,316,351 shares(Note) Total number of treasury stock includes the Company’s stock held by the Board Incentive Plan trust under the Company’s
performance-linked stock remuneration program for directors and executive officers.
* Status of execution of the audit of financial statements- This consolidated financial report is not subject to the audit of the financial statements under the Financial Instruments andExchange Act.
*Explanation for the appropriate use of financial forecasts and other special notes- While descriptions in this report regarding financial prospects and other future events are based on the information available atthe time this report was prepared, and based on certain assumptions considered to be reasonable. Accordingly our actual businessperformance may differ significantly from the prospects due to a number of factors.

○ Table of Contents: Supplementary Materials
1. Overview of Operating Results and Financial Position

P. 2(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2022

P. 2

(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2022

P. 4(3) Overview of Cash Flows for the Fiscal Year Ended March 31, 2022

P. 5

(4) Future Outlook

P. 6(5) Basic Policy for Earnings Distribution and Dividend Payment for the Fiscal Year Ended March
31, 2022 and the Fiscal Year Ending March 31, 2023

P. 6

(6) Business Risks

P. 6

2. Overview of Corporate Group

P. 8

3. Management Policy

P. 9(1) Basic Management Policy

P. 9(2) Medium-term Management Strategy and Targeted Management Benchmarks

P. 9(3) Issues to be Addressed

P. 9

4. Basic Approach Concerning the Selection of Accounting Policies

P.10

5. Consolidated Financial Statements

P.11(1) Consolidated Balance Sheets

P.11(2) Consolidated Statements of Income and Comprehensive Income

P.13(3) Consolidated Statement of Changes in Net Assets

P.15(4) Consolidated Statement of Cash Flows

P.17(5) Notes to Consolidated Financial Statements

P.19(Notes on going concern assumption)

P.19(Changes in accounting principles)

P.19(Changes in methods of presentation)

P.20(Changes in accounting estimates)

P.20(Segment information)

P.21(Per share information)

P.27(Significant subsequent events)

P.27

-1-

1. Overview of Operating Results and Financial Position(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2022
During the fiscal year ended March 31, 2022, Japan witnessed signs of a gradual recovery and normalizationof economic activity although difficult conditions persisted due to the novel coronavirus disease (COVID19). On the other hand, the Ukraine situation has been increasing economic uncertainty. Continuous caution
is warranted regarding downside risks from the COVID-19 situation as well as from concerns related to the
Ukraine situation such as semiconductor shortage, rise in raw materials and energy costs, and the impact
through the supply chain.
As for the business environment for the MIRAIT Group (“the Group”), certain projects remain behindschedule due to voluntary restraints and delays in the delivery of construction materials. However, the Groupis benefitting from the increase in mobile work due to base station installment plans brought forward on theback of the proliferation of fifth-generation mobile telecommunication (5G) services. In addition, demand
for new ICT solutions is rising in line with the promotion of digital transformation (DX), such as expanding
the use of online services and shifting company systems to cloud computing. Furthermore, the government’s“green growth strategy”, including initiatives to promote the shift to renewable energy to achieve a carbonfree society, is expected to boost demand to build more robust digital infrastructure, while also driving
growth in projects to achieve regional revitalization through the creation of decarbonized communities.
Against this backdrop, the MIRAIT Group has continued business operations as a trusted“Comprehensive Engineering and Services Company” that builds and protects social infrastructure that isessential to communities, while continuing to take appropriate measures to prevent the spread of COVID19. At the same time, the Group is endeavoring to enhance corporate value and to achieve sustainable growththrough initiatives to elevate the efficiency of business operations, including those to promote workstylereforms and DX of the Group itself.
The Company has endorsed the Task Force on Climate-related Financial Disclosures (TCFD) andjoined the TCFD Consortium to contribute to society as a whole and the resolution of environmental issues
through its business activities. The Company will make appropriate disclosure of non-financial indicatorsand implement initiatives toward a decarbonized society while reflecting the Group’s risks and opportunities
that may arise from climate change to its management strategies.
In the NTT business, optical fiber work increased on the back of the government’s initiative to expand
advanced wireless telecommunication networks, increasing the sales of the business. The Group also madeefforts to improve profitability by increasing the efficiency of facility management operations.
In the Multi-carrier business, the Group strove to expand sales by increasing 5G-related, Rakuten Mobile,and CATV projects. At the same time, the Group strengthened technological and human resources bydeveloping multi-skilled engineers that are able to handle both fixed and mobile construction andmaintenance work.
In the Environmental and Social Innovation business, the Group focused on achieving orders forelectrical/lighting work and air conditioning work to expand sales, although there was a decrease in largescale solar power projects.
In the ICT Solutions business, the Group expanded sales thanks to an increase in data center/cloudcomputing work and growth of the Lantrovision’s global business. Furthermore, with the aim of growing
the global business in the medium- to long-term, the Group decided to invest in LBS Digital Infrastructure
Corp., which is engaged in telecommunications tower business in the Philippines.
Meanwhile, during the period under review, the Company repurchased its own shares (2.48 million shares,
5,000 million yen) to enhance shareholder returns and based on its flexible capital policy to respond tochanges in the management environment.
As for the consolidated financial results for the fiscal year ended March 31, 2022, orders received
increased by 9.8% year-on-year to 521,310 million yen including the amount of construction account carriedforward of Seibu Construction Co. Ltd., which joined the Group on March 31, 2022. Net sales increased by-2-

1.4% year-on-year to 470,385 million yen, operating income increased by 8.9% year-on-year to
32,804 million yen, and ordinary income increased by 7.6% year-on-year to 34,152 million yen. Net income
attributable to owners of parent increased by 4.0% year-on-year to 25,163 million yen, partly due to the saleof policy shareholdings. Operating income ratio came in at 7.0%, and ROE at 10.7%.
As announced on February 10, 2022, the Company concluded an agreement on a tri-party merger
among the Company and the Company’s consolidated subsidiaries, MIRAIT Corporation and MIRAITTechnologies Corporation. On July 1, 2022, the integrated company will be reorganized and renamed
MIRAIT ONE Corporation for a fresh start. The Group will strive to further enhance the profitability by
speeding up decision making across the Group, streamlining the management structure, and reducing costs
mainly through concentration of management resources, so that it can improve corporate value.
Business results by reporting segment are as mentioned below.
[Business Results of MIRAIT]MIRAIT Corporation (“MIRAIT”) enjoyed an increase in optical fiber work supported by government
projects to expand advanced wireless telecommunication networks, 5G-related work, andelectrical/lighting work in the environmental business. Sales of mobile-related goods and construction
materials also increased. At the same time, it continuously took measures to prevent the spread of COVID19 and promoted workstyle reforms (the best mix of work in the office and work from home). In the fiscal
year ended March 31, 2022, orders received increased by 1.8% year-on-year to 233,735 million yen, net
sales increased by 3.3% year-on-year to 233,150 million yen, and operating income increased by 6.3%
year-on-year to 17,506 million yen.
[Business Results of MIRAIT Technologies]
MIRAIT Technologies Corporation (“MIRAIT Technologies”) benefited from the growth in optical fiber
work for government-supported projects to expand advanced wireless telecommunication networks.
Meanwhile, the company facilitated rapid completion of CATV facility construction work and expanded
other projects such as mobile base station work, next-generation core system projects, and data center
construction-related work. In the fiscal year ended March 31, 2022, orders received increased by 7.1%
year-on-year to 125,814 million yen and net sales increased by 3.4% year-on-year to 123,400 million yen.
Operating income increased by 38.4% year-on-year to 6,830 million yen, which is the highest since its
establishment.
[Business Results of Lantrovision]
Although its business was unstable throughout the year as economic activities were limited due to COVID19, Lantrovision(S)Ltd Group (“Lantrovision”) strove to facilitate business continuity through measures
including those to prevent the spread of infection (which was started before and continued) as well as
reduce costs for such prevention measures. As a result, orders received increased by 18.2% year-on-year
to 22,663 million yen and net sales increased by 39.9% year-on-year to 21,186 million. Operating income
increased by 103.5% year-on-year to 1,336 million yen.
[Business Results of TTK]TTK Co., Ltd. (“TTK”) worked to increase NCC carrier facility work while enjoying an increase in opticalfiber work for government-supported projects to expand advanced wireless telecommunication networks.
However, mainly due to delays in the delivery of construction materials including semiconductors inelectric-related business and the ICT Solutions business, in the fiscal year ended March 31, 2022, orders
received decreased by 9.2% year-on-year to 35,099 million yen. Net sales decreased by 3.3% year-onyear to 36,341 million yen and operating income decreased by 8.8% year-on-year to 2,276 million yen.
-3-

[Business Results of SOLCOM]SOLCOM Co., Ltd. (“SOLCOM”) enjoyed an increase in optical fiber work for government-led projects
to build advanced wireless telecommunication networks and in mobile work due to base station
installment plans brought forward on the back of the proliferation of 5G services. SOLCOM also strove
to increase the efficiency of facility management operations. In the fiscal year ended March 31, 2022,
orders received decreased 23.5% year-on-year to 35,413 million yen, net sales increased by 5.1% yearon-year to 43,428 million yen, and operating income increased by 29.4% year-on-year to 2,682 million
yen.
[Business Results of Shikokutsuken]
Shikokutsuken Co., Ltd. (“Shikokutsuken”) enjoyed an increase in 5G-related work, large-scale
infrastructure work, and optical fiber work for government-supported projects to expand advanced
wireless telecommunication networks. However, mainly due to a decrease in large projects in the ICT
Solutions business including the GIGA school project and delays in the delivery of construction materials
including semiconductors, orders received decreased by 33.3% year-on-year to 22,562 million yen in thefiscal year ended March 31, 2022. Net sales decreased by 26.7% year-on-year to 25,145 million yen andoperating income decreased by 29.3% year-on-year to 2,441 million yen.
[Business Results of MIRAIT Holdings Corporation]
MIRAIT Holdings Corporation (“the Company”), as a holding company, handles the Group’s planning
functions including management strategy, and administrative functions such as finance, IR and generalaffairs. The Company engages in business management and the promotion of business strategies, among
other operations, for the entire MIRAIT Group, and in return receives management fees and dividends
from the Group’s business companies. The Company's operating revenue for the fiscal year ended March
31, 2022 increased by 19.6% year-on-year to 16,652 million yen and operating income increased by 18.6%
year-on-year to 14,435 million yen.
(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2022
Total assets at the end of the fiscal year ended March 31, 2022 amounted to 432,683 million yen, an increaseof 73,931 million yen from the end of the previous fiscal year. This consisted of an increase in current assets
of 42,640 million yen and an increase in non-current assets of 31,291 million yen. Within current assets,accounts receivable from completed construction contracts increased due to an increase in net sales ofcompleted construction contracts. Non-current assets increased because goodwill was recorded as a resultof acquiring shares of Seibu Construction Co. Ltd. Current assets 47,956 million yen and Non-current assets
5,571 million yen increased as a result of acquiring shares of Seibu Construction Co. Ltd.
Total liabilities increased by 56,018 million yen to 183,446 million yen. The consisted of an increasein current liabilities of 55,664 million yen and an increase in non-current liabilities of 353 million yen. Thiswas mainly due to an increase in accounts payable for construction contracts and short-term borrowings.
Current liabilities 15,211 million yen and Non-current liabilities 53 million yen increased as a result of
acquiring shares of Seibu Construction Co. Ltd.
Net assets increased by 17,913 million yen to 249,237 million yen. Although the Company paid
dividends and repurchased its own shares, retained earnings increased by 20,575 million yen due to net
income attributable to owners of parent of 25,163 million yen recorded during the fiscal year under review.
As a result of the above, the equity ratio at the end of the fiscal year ended March 31, 2022 was 56.0%(compared to 63.1% at the end of the previous fiscal year), and net assets per share was 2,446.54 yen.
-4-(3) Overview of Cash Flows for the Fiscal Year Ended March 31, 2022
In the fiscal year ended March 31, 2022, cash and cash equivalents (hereinafter referred to as “funds”)
increased by 6,049 million yen from the previous fiscal year to 48,901 million yen.
Cash flows by business activity and the underlying factors are described below.
1) Cash flow from operating activities
Net cash inflow from operating activities was 12,972 million yen (inflow of 41,602 million yen in theprevious fiscal year). This was mainly attributable to income before income taxes of 37,504 million yen,which more than offset the decrease in funds from income taxes paid of an amount of 14,429 million
yen.
2) Cash flow from investment activities
Net cash outflow from investment activities was 46,204 million yen (inflow of 1,869 million yen in theprevious fiscal year). This was mainly attributable to the payment of 43,410 million yen for theacquisition of shares of Seibu Construction Co. Ltd.
3) Cash flow from financing activities
Net cash inflow from financing activities was 38,395 million yen (outflow of 32,200 million yen in theprevious year). This was mainly attributable to an increase in funds due to a net increase of 49,920
million yen in short-term borrowings, which more than offset the outflow for share repurchases of 5,003
million yen and dividend payments of 4,794 million yen.
(Reference) Trends in the Group’s cash flow indicators

Equity ratio
Marked-to-market equity
ratio
Ratio of cash flow tointerest-bearing debt
Interest coverage ratio

Fiscal year
ended March
31, 2018

Fiscal year
ended March
31, 2019

Fiscal year
ended March
31, 2020

Fiscal year
ended March
31, 2021

Fiscal year
ended March
31, 2022

58.5

59.3

61.2

63.1

56.0

57.2

49.6

41.1

51.6

44.5

19.5

208.6

350.7

24.5

462.4

342.2

371.0

146.1

844.3

321.6

(Notes) 1. Calculation methods for each indicator are as follows:
Equity ratio: Equity / Total assets
Marked-to-market equity ratio: Total market capitalization / Total assets
Ratio of cash flow to interest-bearing debt: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest payment
2. All indicators are calculated based on consolidated financial data.
3. Total market capitalization is calculated by multiplying the closing share price as at the end of the
fiscal year by the number of shares outstanding as at the end of the fiscal year (after deducting treasury
stock).
4. Cash flow used for the purposes of the calculation is the cash flow from operating activities asreported in the Consolidated Statement of Cash Flows.
5. Interest-bearing debt includes all liabilities reported in the Consolidated Balance Sheets for whichinterest is paid. Interest payment is the amount of interest paid as reported in the Consolidated
Statement of Cash Flows.

-5-(4) Future Outlook
At present, it is unclear when the economy will be fully recovered from the COVID-19 pandemic. There arealso other concerns including how the Ukraine situation develops. Therefore, uncertainties may persist forsome time during the fiscal year ending March 31, 2023. Against this backdrop, however, the MIRAITGroup will endeavor to expand new solution business areas including the renewable energy business (solar
power, for example) to achieve a carbon-free society as well as data center/cloud computing work while
promoting initiatives to transform its business structure by strengthening collaboration among the Group
companies. In addition, the Group expects a full-year contribution from Seibu Construction Co. Ltd., which
the Company made a subsidiary in March 2022. As for the consolidated financial performance in the fiscal
year ending March 31, 2023, the forecast for orders received is 540.0 billion yen (+3.6% year-on-year) andnet sales is 540.0 million yen (+14.8% year-on-year). Meanwhile, mainly due to changes in the profit
structure, the forecast for operating income is 30.0 million yen (-8.5% year-on-year), ordinary income is31.0 million yen (-8.5% year-on-year) and net income attributable to owners of parent is 20.0 million yen (20.5% year-on-year).
(5) Basic Policy for Earnings Distribution and Dividend Payment for the Fiscal Year Ended March 31, 2022 andthe Fiscal Year Ending March 31, 2023
The Company’s basic policy is to pay dividends consistently based on its total shareholder return target of
more than 30%, while taking into consideration the Company’s business results and cash position. It is theCompany’s policy to use internal reserves to reinforce its financial position and to invest in businesses thatwill enhance the corporate value of the Company.
Dividends from retained earnings are basically paid twice a year, in the form of an interim dividend
and a year-end dividend. The Board of Directors is the decision-making body for interim dividends, and theGeneral Meeting of Shareholders is that for year-end dividends. Payment of interim dividends as stipulated
under Article 454, Paragraph 5 of the Companies Act has been specified by the Articles of Incorporation of
the Company.
Based on the above, the Company has decided to pay a year-end dividend of 30 yen per share for the
fiscal year ended March 31, 2022. Accordingly, the annual dividend including the interim dividend of 25
yen per share is 55 yen per share.
The Company also repurchased shares (total of 2.48 million shares/ 5,000 million yen) to enhanceshareholder returns and based on its capital policy to respond flexibly to changes in the business environment.
As a result, the total shareholder return ratio was 41.7%.
As for shareholder returns for the fiscal year ending March 31, 2023, the Company plans to pay anannual dividend of 60 yen per share (interim dividend of 30 yen and year-end dividend of 30 yen per share),which is an increase of 5 yen per share from the previous year. In addition, on May 13, 2022, the Company
resolved to repurchase its own shares of up to 1.35 million shares/ 2,000 million yen.
(6) Business Risks
The MIRAIT Group is exposed to the following risks that could affect its operating results and financial
position. Forward-looking statements contained herein are based on the Group’s judgment as at the end of
the fiscal year ended March 31, 2022.
1) Risks associated with excessive dependence on particular clients
The main clients of the MIRAIT Group are telecommunications carriers such as the NTT Group. Owing
to the fact that they account for a large portion of net sales, their capital expenditures or technologicalbreakthroughs and other factors could affect the Group’s business results.
Against this backdrop, the Group is accelerating its efforts in transitioning the business structure byshifting from the telecommunications carrier business to the solutions business and creating new business
opportunities beyond its traditional business domains and technologies.
-6-2) Risks associated with safety and quality issues
In the event of serious accidents, quality issues or other contingencies, there may be severe consequences
which may result in the loss of clients’ confidence and restrictions on the Group’s operating activities,
affecting its business results.
The MIRAIT Group is therefore wholly committed to ensuring safety and quality controls needed todeliver quality engineering and services that deserve customers’ trust and appreciation, by leveraging the
integrated safety and quality management system adopted by its business companies.
3) Risks associated with the management of critical information
The MIRAIT Group may access critical information, such as technical data and personal information
provided by clients.
In the event of unforeseen information leakage or malicious use of such information, the Group may
suffer liability for damages with potential impact on its financial results. Such event may also result inthe loss of client’s confidence, affecting the Group’s business results.
The MIRAIT Group is therefore wholly committed to the prevention of leakage of classified
information through the use of ISMS (information security management system) adopted by its businesscompanies.
4) Risks associated with uncertainties regarding clients’ credit quality
If uncertainties arise regarding the credit quality of a client, the MIRAIT Group may not be able to receive
payments for construction work or may be forced to delay projects, which could affect the Group’sbusiness results.
The MIRAIT Group therefore adopts measures to avoid credit risks, such as the use of external credit
agencies for client credit risk management, and contract document reviews by the legal section.
5) Risks associated with assets held by the Group
The MIRAIT Group holds assets such as securities that are necessary for its business operations.
Significant fluctuation in market prices thereof could affect the Group’s business results.
The MIRAIT Group therefore adopts measures to avoid risks associated with fluctuations in valueof such assets, such as by assessing its securities holdings both quantitatively and qualitatively andgradually reducing those that have less significance for the Group’s business.
6) Risks associated with natural disasters
The occurrence of contingencies such as severe natural disasters and the spread of epidemic diseases
could cause direct damage on the MIRAIT Group’s employees, subcontractors and facilities, or cause
supply chain disruptions delaying the procurement of materials and equipment, which may affect theGroup’s business results.
The MIRAIT Group has adopted countermeasures against events such as natural disasters including
earthquakes and the spread of epidemic diseases, including the formulation of a business continuity plan
(BCP), establishment of a system to confirm the safety of employees, conducting of evacuation drills andadopting of new workstyles.
7) Risks associated with overseas businesses
The MIRAIT Group operates businesses in countries outside of Japan, primarily in Asia and Oceania.
Significant changes in the political and economic climate, currency exchange rate and the legal andregulatory framework, or the spread of epidemic diseases in these countries could cause rapid rises inmaterial prices and labor costs, which may affect the Group’s business results.
The MIRAIT Group is striving to prevent and mitigate such risks by gathering information within
the Group and by appropriately diversifying the countries in which the Group operates.

-7-

2. Overview of Corporate Group
The MIRAIT Group comprises MIRAIT Holdings Corporation as the holding company, and 79 consolidated
subsidiaries including MIRAIT Corporation, MIRAIT Technologies Corporation, Lantrovision(S)Ltd, TTK
Co., Ltd, SOLCOM Co., Ltd, Shikokutsuken Co., Ltd., and Seibu Construction Co. Ltd. The main businesses
operated by the Group are NTT business, Multi-carrier business, Environmental & Social Innovation business,
and ICT Solutions business.
The Group’s operational structure is as follows.
(As of March 31, 2022)

Clients
Providing of "Comprehensive engineering & service"・NTT business・Multi-carrier business・Environmental & social innovation business・ICT solution business

MIRAIT GroupMIRAIT Corporation[Consolidated subsidiaries]
M's Frontier Corporation
DAIMEI TECHNO CO., LTD.
Meisei Correspondence Co., Ltd. MIRAIT Mobile East Co.,ltd.
SINKO ELECTRIC CORP.
MIRAIT-X Corporation
Nissetsu Co., Ltd.
Okisokou Co., Ltd.
Trust System Inc.
HOPE NET Co.,Ltd.
[Affiliates accounted for using the equity method]
1 Company

MIRAIT Solutions Corporation
MIRAIT Mobile West Co.,ltd.
TODENTSU Access Corporation
Libnet Corporation
Line Connect Corporation

Tohoken System Engineering Corp.
DAIMEI TUSAN CORP.
TODENTSU Network Corporation
TIMETEC Co.,Ltd.
Tokai-koei Inc.

COTONET ENGINEERING Co., Ltd.
Nishinihon Denko Corporation
MIRAIT Information Systems Co., Ltd.
CREiST Inc.
MIRAIT Technologies Myanmar Co.,Ltd.

Ligare Co., Ltd.
Ground Create Co., Ltd.
ACTIS Co.,Ltd.
MiratecDrone Corp.

MIRAIT Technologies Corporation[Consolidated subsidiaries]
AST-ENG Corp.
Lapisnet Co.,Ltd.
Agility RISE Co.,Ltd
Comlead Co., Ltd.
KATAKURA CONSTRUCTION Co.,Ltd.
Fucom Corp.
Kinki Denki Corp.
MIRAIT Technologies Australia Pty.Limited[Affiliates accounted for using the equity method] 3 Companies

Lantrovision(S)LtdMIRAIT Holdings Corporation[Consolidated subsidiaries]
Lantro (S) Pte Ltd
Lantro (Malaysia) Sdn Bhd
Lantrovision Korea Co.Ltd
Lantro (Shanghai) Co.Ltd
Lantro (Penang) Sdn Bhd
Lantro Myanmar Co. Ltd
PT. Lantro Technologies Indonesia YL Integrated Pte Ltd

Lantro (HK) Limited
VRnet (S) Pte Ltd
Lantro (Taiwan) Ltd
Appsilan Asia Pte Ltd
Infilan Pte Ltd
Lantro Phils. Inc.
Lantro Technologies India Private Limited Innovative Energy Systems & Technology Pte. Ltd.
Nectric Engineering Pte Ltd

Sun Power Electrical Pte Ltd

Shanghai Changling Communication Equipment Co.,Ltd[Affiliates accounted for using the equity method]

5 Companies

TTK Co., Ltd[Consolidated subsidiaries]
TTK ENG Miyagi Co.,LtdTTK ENG Akita Co.,Ltd

HOKUBU Co.,LtdTTK ENG Yamagata Co.,LtdTTK ENG Iwate Co.,LtdTTK ENG Fukushima Co.,Ltd

SOLCOM Co., Ltd[Consolidated subsidiaries]
Solcom Meister Inc.
Seiken Kogyo Co., Ltd.

Yuwa Kogyo Co., Ltd.
Chugoku Telecommunication Materials Co., Ltd.

[Affiliates accounted for using the equity method]

2 Companies

Shikokutsuken Co., Ltd.
[Consolidated subsidiaries]
Ochidenki Corporation

STK Techno Corporation

SEIBU CONSTRUCTION CO.,LTD.

-8-

Solcom Business Service Inc.
Dentsu Material Inc.

TTK ENG Aomori Co.,Ltd
Tsukada Electrical Construction Co., Ltd.

Changes in affiliated companies are as follows:
1) STK Techno Corporation, newly established by Shikokutsuken Co., Ltd., was added to the scope of
consolidation.
2) Hangzhou Lantro Co., Ltd was removed from the scope of consolidation following its dissolution.
ADNOS SOLUTIEN Pte Ltd was removed from the scope of consolidation, as Lantrovision(S)Ltd, aconsolidated subsidiary of the Company, sold all shares of ADNOS SOLUTIEN Pte Ltd.
3) Seibu Construction Co. Ltd. was added to the scope of consolidation as the Company acquired 95% ofshares issued by Seibu Construction Co. Ltd.
3. Management Policy(1) Basic Management Policy
The MIRAIT Group aims to enhance its corporate value and to achieve sustained growth by:
1) Striving to be a leading Japanese corporation that realizes the highest levels of customer satisfaction
and trust as a "Comprehensive Engineering and Services Company" that continually creates new value
centered on the field of information and telecommunications.
2) Contributing to the realization of an enriched and comfortable society by placing value on safety andquality and offering the highest level of services.
3) Continuing to be an enterprise that coexists and mutually prospers with people and society, fulfillingits corporate social responsibility and respecting humanity.
(2) Medium-term Management Strategy and Targeted Management Benchmarks
The MIRAIT Group will be redefined its purpose and mission that embody the thoughts of 14,000 peopleof its officers and employees and formulated a business vision toward 2030, MIRAIT ONE Group Vision
2030. With the vision, the Group aims to evolve into a corporate group that can, more than ever, contributeto addressing social issues in a broad range of social infrastructure areas. In addition, the Group will beestablished the Medium-term Management Plan for the years starting in the fiscal year ending March 31,
2023, aiming to achieve the targets in the plan.
(3) Issues to be Addressed
The business environment for the MIRAIT Group is expected to continue to change dramatically on theback of the expansion of fifth-generation mobile telecommunication (5G) services, rise of the use of online
services, and the boost in demand for new ICT solutions in line with the promotion of DX including the shiftof company systems to cloud computing. Furthermore, the government’s “green growth strategy”, including
initiatives to promote the shift to renewable energy to achieve a carbon-free society, is expected to boost
demand to build more robust digital infrastructure, while also driving growth in projects to achieve regional
revitalization through the creation of decarbonized communities.
Against this backdrop, the MIRAIT Group concluded an agreement on a tri-party merger among theCompany and the Company’s consolidated subsidiaries, MIRAIT Corporation and MIRAIT Technologies
Corporation. The integrated company, MIRAIT ONE Corporation, will make a fresh start on July 1, 2022.
Moreover, the Group will accelerate its business structure transformation in response to changes in thebusiness environment. Specifically, the Group will reorganize its organizations of the system integration(SI) business including the group companies’ SI business organizations and five SI companies under theGroup. In addition, the Group is promoting collaboration in the civil engineering and construction businesswith Seibu Construction Co. Ltd., which joined the Group on March 31, 2022.
Uncertainties may persist as it is unclear when the economy will be fully recovered from the COVID19 pandemic, and there are other concerns related to the Ukraine situation such as semiconductor shortage,rise in raw materials and energy costs, and the impact through the supply chain. However, the MIRAITGroup will endeavor to realize its business vision toward 2030, MIRAIT ONE Group Vision 2030, aiming
to enhance its corporate value and achieve sustainable growth while embracing new workstyles to realize
an energetic and vibrant corporate group.
-9-4. Basic Approach Concerning the Selection of Accounting Policies
The MIRAIT Group operates its businesses primarily in Japan. Hence, the policy of the Company is to prepare
its consolidated financial statements based on Japanese accounting standards for the time being. The Company
will respond appropriately based on developments of its overseas businesses and the situation with otherJapanese companies in applying IFRS (International Financial Reporting Standards).
(Notes)This document contains forward-looking statements based on the plans, outlooks, management strategies
and policies of the Group at the time of its issuance. Such forward-looking statements describe management
judgments and assumptions based on information available at this time.
As such, actual business results could be significantly different from those stated in this document due
to changes in the various underlying conditions. Thus, please be advised that the Company cannot guarantee
the accuracy of the forward-looking statements in this document into the future.

- 10 -

5. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

AssetsCurrent assets
Cash and deposits

44,76450,929Notes receivable - trade
Accounts receivable from completed construction contracts

1,458
126,862

1,273
179,275

Accounts receivable - trade
Costs on construction contracts in progress

19,28330,789–30,916

Prepaid expenses
Accounts receivable - other

1,166
2,307

1,224
3,902

Investments in leases
Other

5,460
1,428

4,376
4,252

Allowance for doubtful accounts

(26)

(15)

233,494

276,135

58,19066,344

Machinery, vehicles, tools, furniture and fixturesLand

17,94632,891

19,53135,445

Leased assets
Construction in progress

7,466
5,602

9,373
629

Accumulated depreciation(35,442)(39,772)

Total property, plant and equipment

86,65591,552

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Intangible assets
Customer related assets

2,523

2,539

3,094
1,491

27,658
1,502

Software in progress
Other

129
311

1,850
258

Goodwill
SoftwareTotal intangible assets

7,549

33,810Investments and other assets
Investment securities

22,562

16,224Retirement benefit asset
Deferred tax assets

2,988
2,504

7,708
3,651

Leasehold and guarantee deposits
Other

1,425
1,798

1,813
2,119

Allowance for doubtful accounts

(227)

(331)

Total investments and other assets

31,052

31,186125,256

156,548358,751432,683

Total non-current assets
Total assets- 11 -

(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Liabilities
Current liabilities
Notes payable - trade

2,507

2,096

Accounts payable for construction contracts
Short-term borrowings

60,705
186

65,69350,107

Accounts payable - other
Income taxes payable

4,076
8,086

5,552
5,077

Advances received on construction contracts in progress
Lease obligations

3,150
3,347

7,341
3,537

Provision for loss on construction contracts
Provision for bonuses

1,299
8,023

1,406
8,336

101
10

93
204

Provision for bonuses for directors (and other officers)
Provision for warranties for completed construction
Other

11,523

9,235

Total current liabilities

103,018

158,683

Long-term accounts payable - other
Lease obligations

1,324
6,592

798
6,302

Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for retirement benefits for directors (and otherofficers)
Provision for share-based compensation

1,139
41

636
41

122

79

310

390

Retirement benefit liability
Asset retirement obligations

13,974
189

15,356617

Non-current liabilities

Other

714

538

24,40924,763

127,428

183,446

Share capital
Capital surplus

7,000
69,571

7,000
69,652Retained earnings
Treasury shares

155,239(10,888)

175,815(15,844)

Total shareholders' equity

220,922236,623

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

4,660

3,011

Revaluation reserve for land
Foreign currency translation adjustment(98)(1,126)(98)
236

Remeasurements of defined benefit plans

2,031

2,347

Total accumulated other comprehensive income

5,466

5,497

Non-controlling interests
Total net assets
Total liabilities and net assets- 12 -

4,934

7,116

231,323

249,237

358,751432,683(2) Consolidated Statements of Income and Comprehensive Income(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Net sales of completed construction contracts

463,744

470,385

Cost of sales of completed construction contracts

402,953

404,169

Gross profit on completed construction contracts

60,79066,216

Selling, general and administrative expenses

30,661

33,411

Operating profit

30,12932,804

Interest income
Dividend income
Rental income from real estate
Surrender value of insurance policies
Share of profit of entities accounted for using equity method

50
971
197
132
-

49
623
240
99
206

Foreign exchange gains
Other

344
303

176
281

2,001

1,677

Infectious disease control costs
Interest expenses

–
48

59
40

Commission expenses
Share of loss of entities accounted for using equity method

–
164

121
–

Provision of allowance for doubtful accounts
Other

45
132

–
107

Total non-operating expenses

390

329

31,73934,152

20
4,642

647
3,256

271
4

45

4,938

3,949

Extraordinary losses
Loss on revision of retirement benefit plan–

34

Loss on sale of non-current assets
Loss on retirement of non-current assets

2
185

28
111

Impairment losses
Loss on sale of investment securities

117
5

154
–

Loss on valuation of investment securities
Business restructuring expenses

55
4

0
165

Other

64

102

Total extraordinary losses

436

597

36,24237,504Non-operating income

Total non-operating income
Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on revision of retirement benefit plan
Other
Total extraordinary income

Profit before income taxes- 13 -

(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Income taxes - current

13,47913,153

Income taxes - deferred(1,765)(1,083)

Total income taxes

11,713

12,070

Profit24,52825,433322

270

24,20525,163

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

(304)
(821)

(1,649)1,361

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income

1,755

315

(19)

8

Profit attributable toProfit attributable to non-controlling interests
Profit attributable to owners of parent
Other comprehensive income

Comprehensive income

610

35

25,13825,46924,808329

25,193275

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests- 14 -

(3) Consolidated Statement of Changes in Net Assets
Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholders' equity
Share capital

Capital surplus

7,000

Balance at beginning of period

Retained earnings

69,399Treasury shares

135,546

Total shareholders'equity(1,386)

210,559

Cumulative effects of changes inaccounting policies

7,000

Restated balance

69,399135,546(1,386)

210,559

Changes during period
Dividends of surplus(4,583)(4,583)

Profit attributable to owners ofparent24,20524,205Purchase of treasury shares(0)

Disposal of treasury shares(9,574)(9,574)72

72
71

Increase by merger-

Change in scope of consolidation
Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders' equity

171

Total changes during period
Balance at end of period

171

-

171

19,693(9,501)

10,362

7,000

69,571

155,239(10,888)

220,922

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

4,967

Total
Foreign currency Remeasurements accumulated Non-controlling Total net assets
Revaluationinterests
translationof defined
otherreserve for land
adjustment
benefit plans comprehensive
income

(98)

(281)

276

4,863

3,287

Cumulative effects of changes inaccounting policies
Restated balance

218,710
-

4,967

(98)

(281)

276

4,863

3,287

218,710

Changes during period
Dividends of surplus(4,583)

Profit attributable to owners ofparent24,205Purchase of treasury shares(9,574)

Disposal of treasury shares

72

Increase by merger

71

Change in scope of consolidation–

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders' equity

171
(307)

–

(844)

1,755

603

1,646

2,250

Total changes during period

(307)

–

(844)

1,755

603

1,646

12,613

Balance at end of period

4,660

(98)

(1,126)

2,031

5,466

4,934

231,323- 15 -

Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders' equity
Share capital

Capital surplus

7,000

Balance at beginning of period

Retained earnings

69,571

Treasury shares

155,239

Cumulative effects of changes inaccounting policies

Total shareholders'equity(10,888)

220,92263
7,000

Restated balance

69,571

63

155,303(10,888)

220,986

Changes during period
Dividends of surplus(4,801)(4,801)

Profit attributable to owners ofparent25,16325,163Purchase of treasury shares

0

Disposal of treasury shares(5,003)(5,003)

47

47

Increase by merger

62

62

Change in scope of consolidation

87

87

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders' equity

81

Total changes during period
Balance at end of period

81

–

81

20,512(4,955)

15,6377,000

69,652

175,815(15,844)236,623

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Revaluation
reserve for land

4,660

(98)

Total
Foreign currency Remeasurements accumulated Non-controlling Total net assetsinterests
translationof definedotheradjustment
benefit plans comprehensive
income(1,126)

2,031

5,466

4,934

Cumulative effects of changes inaccounting policies
Restated balance

231,323
63

4,660

(98)

(1,126)

2,031

5,466

4,934

231,387

Changes during period
Dividends of surplus(4,801)

Profit attributable to owners ofparent25,163Purchase of treasury shares(5,003)

Disposal of treasury shares

47

Increase by merger

62

Change in scope of consolidation

87

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders' equity

81(1,648)

–

1,363

315

30

2,182

2,212

Total changes during period(1,648)

–

1,363

315

30

2,182

17,850

Balance at end of period

3,011

(98)

236

2,347

5,497

7,116

249,237- 16 -

(4) Consolidated Statement of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Cash flows from operating activities
Profit before income taxes
Depreciation

36,242
6,298

37,504
6,865

Impairment losses
Amortization of goodwill

117
648

154
514

Share of loss (profit) of entities accounted for using equity method
Increase (decrease) in allowance for doubtful accounts

164
10

(206)
(60)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on construction contracts

507
339

309
(559)

Increase (decrease) in other provisions
Remeasurements of defined benefit plans

5
1,755

32
315

Increase (decrease) in net defined benefit asset and liability
Interest and dividend income(4,681)(1,022)

(281)
(672)

48
(373)

40
(176)

Loss (gain) on sale of investment securities
Loss (gain) on sale and retirement of non-current assets(4,636)168(3,256)(507)

Decrease (increase) in trade receivables
Decrease (increase) in costs on construction contracts in progress

331
1,950

(4,303)486

Increase (decrease) in trade payables
Increase (decrease) in advances received on construction contracts
in progress
Increase (decrease) in accrued consumption taxes
Decrease (increase) in consumption taxes refund receivable

4,362(3,142)(1,481)

345

4,541
1,279

(4,666)(1,533)

Increase/decrease in other assets/liabilities
Other, net

2,964
87

(827)
351

Subtotal

49,627

26,727

Interest and dividends received
Interest paid

1,090
(49)

715
(40)

Income taxes paid

(9,066)(14,429)

Net cash provided by (used in) operating activities

41,602

12,972

Interest expenses
Foreign exchange losses (gains)- 17 -

(Millions of yen)
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits(1,370)1,309(1,377)
1,296

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(8,383)72(8,592)785

Purchase of intangible assets
Purchase of investment securities

(534)
(133)

(2,346)(259)

Proceeds from sale of investment securities
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Net decrease (increase) in short-term loans receivable
Proceeds from cancellation of insurance funds

11,369

8,617

(271)

(43,410)

2
118

(734)
101

Other, net

(309)

(284)

Net cash provided by (used in) investing activities

1,869(46,204)

Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings(16,611)(19)

49,920(26)

Purchase of treasury shares
Dividends paid

(9,574)(4,579)(5,003)(4,794)

Dividends paid to non-controlling interests
Repayments of finance lease obligations(84)(1,324)(112)(1,470)

(5)

(117)

Net cash provided by (used in) financing activities(32,200)(38,395)

Effect of exchange rate change on cash and cash equivalents

(202)

810

Cash flows from financing activities

Other, net

Net increase (decrease) in cash and cash equivalents

11,068

5,973

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from merger withunconsolidated subsidiaries
Cash and cash equivalents at end of period

31,63242,851150

75

42,851

48,901- 18 -

(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Changes in accounting principles)(Application of Accounting Standard for Revenue Recognition)
The Company has adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29
dated March 31, 2020) and other relevant standards from the beginning of the consolidated fiscal year underreview. Under the new accounting policy, revenue is recognized as the amount expected to be received in
exchange for promised goods or services when the control of such goods or services is transferred to thecustomer.
Major changes resulting from the application of the “Accounting Standard for Revenue Recognition”,
etc., are described below.
(1) Performance obligations satisfied over a certain period of time
The Company previously applied the percentage-of-completion method for construction contracts inwhich the outcome of the portion of the construction to be completed at the end of the consolidated
fiscal year was deemed to be certain. The completed contract method was applied for otherconstruction contracts.
Under the new accounting policy, revenue is recognized over a certain period in accordance withthe progress on satisfaction of performance obligations, with the exception of short-term construction
work. If the progress on satisfaction of performance obligations cannot be reasonably estimated, butcosts incurred to satisfy such performance obligations is expected to be recovered, revenue isrecognized within the scope of actual costs incurred.
(2) Transactions deemed to be agency transactions
The Company previously recognized the total amount received from customers in exchange for goods
for certain sales transactions. Under the new accounting policy, revenue for sales transactions in which
the Company acts as an agent is recognized as the net amount after deducting the amount that is paid
to the supplier of such goods from the amount received from customers.
In accordance with the transitional treatment stipulated in the proviso of Article 84 of the“Accounting Standard for Revenue Recognition”, retained earnings as of the beginning of theconsolidated fiscal year under review has been adjusted to reflect the cumulative effects ofretrospectively applying the new accounting policy to periods prior to the beginning of theconsolidated fiscal year under review, and the new accounting policy is applied from the said balance.
As a result of the application of the new accounting policy, net sales for the twelve months
increased by 919 million yen, cost of sales by 784 million yen, and operating income, ordinary income
and profit before income taxes by 134 million yen. Retained earnings at the beginning of the period
under review increased by 63 million yen.
In accordance with the transitional treatment stipulated in Article 89-2 of the “AccountingStandard for Revenue Recognition”, the Company has not reclassified the statements for the previous
consolidated fiscal year to conform to the new accounting policy.
(Application of Accounting Standard for Fair Value Measurement)
The Company has adopted the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.
30 dated July 4, 2019) and other relevant standards, from the beginning of the consolidated fiscal year
under review. In accordance with the transitional treatment stipulated in Article 19 of the “AccountingStandard for Fair Value Measurement” and Article 44-2 of the “Accounting Standard for Financial
Instruments (ASBJ Statement No. 10 dated July 4, 2019), the new accounting policy set forth in the- 19 -

“Accounting Standard for Fair Value Measurement”, etc., is applied into the future. This has no effect on
the quarterly consolidated financial statements.
(Changes in methods of presentation)(Consolidated balance sheets)
The Company has decided to present “Software in progress,” previously included in “Software”, as aseparate item from the consolidated fiscal year under review, given that its quantitative materiality has
increased. The consolidated financial statements for the previous fiscal year have been restated in orderto reflect this change in presentation.
Consequently, “Software” of 1,620 million yen in the consolidated statement of balance sheets ofthe previous fiscal year has been reclassified as “Software in progress” of 129 million yen and “Software”
of 1,491 million yen.
(Consolidated statements of income and comprehensive income)
The Company has decided to present “Rental income from real estate”, previously included in “Nonoperating income – Other”, as a separate item from the consolidated fiscal year under review, given thatit represents more than ten one-hundredths of total non-operating income. The consolidated financial
statements for the previous fiscal year have been restated in order to reflect this change in presentation.
Consequently, “Non-operating income – Other” of 501 million yen in the consolidated statements ofincome and comprehensive income of the previous fiscal year has been reclassified as “Rental income
from real estate” of 197 million yen and “Other” of 303 million yen.
(Consolidated cash flow statement)
The Company has decided to present “Net decrease (increase) in short-term loans receivable,” previously
included in “Cash flows from investing activities – Other, net”, as a separate item from the consolidated
fiscal year under review, given that its quantitative materiality has increased. The consolidated financial
statements for the previous fiscal year have been restated in order to reflect this change in presentation.
Consequently, “Cash flows from investing activities – Other, net” of (307) million yen in the
consolidated statement of cash flows of the previous fiscal year has been reclassified as “Impairment
losses” of 2 million yen and “Other, net” of (309) million yen.
In addition, “Purchase of shares of subsidiaries not resulting in change in scope of consolidation”
and “Proceeds from disposal of treasury shares” under “Cash flows from financing activities”, which werepreviously presented separately, have been included in “Other, net” from the consolidated fiscal year underreview because of insignificance. The consolidated financial statements for the previous fiscal year havebeen restated in order to reflect this change in presentation.
Consequently, “Purchase of shares of subsidiaries not resulting in change in scope of consolidation”of (5) million yen and “Proceeds from disposal of treasury shares” of 0 million yen under “Cash flows
from financing activities” in the consolidated statement of cash flows of the previous fiscal year have been
reclassified as “Other, net” of (5) million yen.

(Changes in accounting estimates)
Not applicable.

- 20 -

(Segment information)[Segment information]
1. Description of reportable segments(1) Method of determining reportable segments
The reportable segments of the Company are individual units for which separate financial information isavailable, and that are subject to a periodic review by the Board of Directors for the purposes ofdetermining the allocation of management resources and evaluating performance.
Under the guidance of the Company as the holding company of the MIRAIT Group, the businessgroups, which are centered on the business companies, form comprehensive strategies and engage inactivities for their respective businesses.
The Company acquired shares of Seibu Construction Co. Ltd. and added it to the scope of
consolidation. Accordingly, “Seibu Construction” is added to the Company’s reportable segments. For the
Seibu Construction segment, only the amount of segment assets is disclosed because only its balance sheet
is consolidated.
Hence, the seven reportable segments of the Company are “MIRAIT”, “MIRAIT Technologies”,“Lantrovision”, “TTK”, “SOLCOM,” “Shikokutsuken” and “Seibu Construction.”(2) Types of products and services attributable to each reportable segment“MIRAIT”, “MIRAIT Technologies”, “Lantrovision”, “TTK”, “SOLCOM,” “Shikokutsuken” and“Seibu Construction” mainly engage in telecommunications engineering work/ electrical work and air
conditioning/ sanitary construction work/ General construction work.
2. Method of calculating sales, income, assets and other items for each reportable segment
Accounting methods applied to the reportable business segments are generally in line with those applied tothe consolidated financial statements.
Segment income reflects the operating income for each reportable segment. Internal revenue andtransfers between segments are based on actual market prices.

- 21 -

3. Sales and income, assets and other items by reportable segment
Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(million yen)
Reportable segment
MIRAITMIRAIT
Technologies

Lantrovision

TTK

SOLCOM

ShikokutsukenTotal

Net sales
Net sales toexternal customers
Inter-segment sales
or transfers

224,644

111,262

15,14037,28841,23934,167463,742

1,130

8,115

-

302

62

118

9,729

Total

225,774

119,377

15,14037,59041,301

34,286473,471

Segment income

16,468

4,937

656

2,497

2,073

3,453

30,086

Segment assets

170,241

103,643

23,32232,31941,51026,590397,627

1,971

2,308

415

787

678

127

6,288

4,571

3,107

843

848

752

425

10,550Adjustments(Note 2)

Amount inConsolidated
Financial
Statements(Note 3)

Other items
Depreciation andamortization
Increase inproperty, plant andequipment andintangible assets

Other(Note 1)Total

Net sales
Net sales toexternal customers
Inter-segment sales
or transfers

2463,744-463,744

13,92623,655(23,655)-

Total

13,928487,399(23,655)

463,744

Segment income

12,16742,253(12,124)

30,129Segment assets

166,364

563,991(205,239)

358,751

Other items
Depreciation and
10
6,298
6,298
amortization
Increase inproperty, plant and20
10,571
10,571equipment andintangible assets(Notes) 1. The "Other" segment refers to the Company (pure holding company) which does not belong to any business segment.
2. The amounts adjusted are as follows:(1) Adjustments for segment income in the amount of (12,124) million yen include adjustments for dividends in theamount of (12,298) million yen and adjustments for retirement benefits in the amount of 191 million yen, respectively.
(2) Adjustments for segment assets in the amount of (205,239) million yen include the netting of investments and capitalin the amount of (129,669) million yen and the netting of receivables in the amount of (76,968) million yen.
3. Segment income is adjusted to the operating income reported in the Consolidated Statement of Income andComprehensive Income.

- 22 -

Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(million yen)
Reportable segment
MIRAITMIRAIT
Technologies

Lantrovision

TTK

ShikokutsukenSOLCOM

Seibu
Construction

Net sales
Net sales toexternal customers
Inter-segment sales
or transfers

231,425

113,880

20,49736,22843,36524,987

-

1,724

9,519

689

113

62

157

-

Total

233,150

123,400

21,18636,341

43,42825,145-

Segment income

17,506

6,830

1,336

2,276

2,682

2,441

-

Segment assets

175,897

112,386

27,11831,46942,93820,54380,718-Other items
Depreciation andamortization
Increase inproperty, plant andequipment andintangible assets

2,130

2,541

564

773

696

147

-

10,308

3,792

525

598

641

155

-

Adjustments(Note 2)

Amount inConsolidated
Financial
Statements(Note 3)

Total

Other
(Note 1)Total

Net sales
Net sales toexternal customers
Inter-segment sales
or transfers

470,3850470,385-

470,385

12,267

16,652

28,919(28,919)-

Total

482,652

16,652

499,305(28,919)

470,385

Segment income

33,073

14,43547,508(14,704)

32,804

Segment assets

491,072

237,063

728,135(295,452)

432,683

Other items
Depreciation and
6,855
9
6,865
6,865
amortization
Increase inproperty, plant and
16,02220
16,042
16,042equipment andintangible assets(Notes) 1. The "Other" segment refers to the Company (pure holding company) which does not belong to any business segment.
2. The amounts adjusted are as follows:(1) Adjustments for segment income in the amount of (14,704) million yen include adjustments for dividends in theamount of (14,444) million yen and adjustments for retirement benefits in the amount of 211 million yen, respectively.
(2) Adjustments for segment assets in the amount of (295,452) million yen include the netting of investments and capitalin the amount of (190,969) million yen and the netting of receivables in the amount of (102,402) million yen.
3. Segment income is adjusted to the operating income reported in the Consolidated Statement of Income andComprehensive Income.

- 23 -

As described in the changes in accounting principles, the Company changed the accounting treatment forrevenue recognition to adopt the Accounting Standard for Revenue Recognition, etc. from consolidated
financial statements for the current consolidated fiscal year. Consequently, the method of calculating profit ofbusiness segments was also changed.
The effects of each reportable segment as follows.
Net sales of MIRAIT increased by 975 million yen. Segment income increased by 18 million yen.
Net sales of MIRAIT Technologies increased by 172 million yen. Segment income increased by 33 million yen.
Net sales of TTK decreased by 409 million yen. Segment income increased by 66 million yen.
Net sales of SOLCOM decreased by 243 million yen. Segment income increased by 10 million yen.
Net sales of Shikokutsuken increased by 329 million yen. Segment income increased by 5 million yen.

(Associated information)
Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)
1. Information for individual products and services
Information for individual products and services is omitted given that telecommunication engineering andelectrical facility work account for more than 90% of net sales reported in the Consolidated Statement of
Income and Comprehensive Income.
2. Information for individual regions(1) Net sales
Information on net sales for individual regions is omitted given that sales to domestic external customers
account for more than 90% of net sales reported in the Consolidated Statement of Income andComprehensive Income.
(2) Property, plant and equipment
Information on property, plant and equipment for individual regions is omitted given that domestic assets
represent more than 90% of property, plant and equipment as reported in the Consolidated Balance Sheet.
3. Information regarding major customers
Name of customer(million yen)
Associated business segments

Net sales

MIRAIT

Nippon Telegraph and Telephone
East Corporation

86,828 MIRAIT Technologies
TTK
MIRAIT

Nippon Telegraph and Telephone
West Corporation

62,108MIRAIT Technologies
SOLCOM
Shikokutsuken
MIRAITMIRAIT Technologies

40,379 TTKNTT DOCOMO, INC.

SOLCOM
Shikokutsuken- 24 -

Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)
1. Information for individual products and services
Information for individual products and services is omitted given that telecommunication engineering andelectrical facility work account for more than 90% of net sales reported in the Consolidated Statement of
Income and Comprehensive Income.
2. Information for individual regions(1) Net sales
Information on net sales for individual regions is omitted given that sales to domestic external customers
account for more than 90% of net sales reported in the Consolidated Statement of Income andComprehensive Income.
(2) Property, plant and equipment
Information on property, plant and equipment for individual regions is omitted given that domestic assets
represent more than 90% of property, plant and equipment as reported in the Consolidated Balance Sheet.
3. Information regarding major customers
Name of customer(million yen)
Associated business segments

Net sales

MIRAIT

Nippon Telegraph and Telephone
East Corporation

90,257 MIRAIT Technologies
TTK
MIRAIT

Nippon Telegraph and Telephone
West Corporation

63,066MIRAIT Technologies
SOLCOM
Shikokutsuken
MIRAITMIRAIT Technologies

39,779 TTKNTT DOCOMO, INC.

SOLCOM
Shikokutsuken- 25 -

(Segment information for impairment of non-current assets)
Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(million yen)
Reportable segment
MIRAIT
Lantrovision
TTK
SOLCOM
Technologies

MIRAIT

21

Impairment losses--

Corporate andelimination

Others-Impairment losses

83

Shikokutsuken

11

Total

-

117

Total

-

117

Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(million yen)
Reportable segment
MIRAIT
Lantrovision
Technologies

MIRAIT-

Impairment losses

-

Total
Impairment losses--

ShikokutsukenSOLCOM

154

Corporate andelimination

Others

154

TTK

-

Seibu
Construction

-

-

Total

-

154

(Segment information for amortized and outstanding amounts of goodwill)
Fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(million yen)
Reportable segment
MIRAITTTKSOLCOM
Lantrovision
Technologies

MIRAIT(Goodwill)
Amortized amount
Balance at end ofcurrent period

Shikokutsuken

Total

239

42

236

33

-

96

648

156

53

2,610

9

-

264

3,094

Corporate andelimination

OthersTotal(Goodwill)
Amortized amount
Balance at end ofcurrent period

-

-

648

-

-

3,094

(Note): The Company has accounted for a goodwill impairment loss of 80 million yen pertaining to TTK.

Fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(million yen)
Reportable segment
MIRAIT(Goodwill)
Amortized amount
Balance at end ofcurrent period

MIRAIT
Lantrovision
Technologies

TTK

Seibu
Construction

46

42

325

3

-

96

-

110

10

2,510

5

-

168

24,852

Total

Corporate andelimination

OthersTotal(Goodwill)
Amortized amount
Balance at end ofcurrent period

ShikokutsukenSOLCOM

514

-

-

514

27,658--27,658- 26 -

(Per share information)
Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022
(April 1, 2020 to March 31, 2021) (April 1, 2021 to March 31, 2022)
Net assets per share

2,232.25 yen

2,446.54 yen

Net income per share

229.59 yen

250.84 yen(Note) The basis for calculating net income per share and diluted net income per share is as follows:

Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022
(April 1, 2020 to March 31, 2021) (April 1, 2021 to March 31, 2022)
Net income per share
Net income attributable to owners ofparent (million yen)
Net income not attributable to commonshareholders (million yen)
Net income attributable to owners ofparent attributable to common stock(million yen)
Average number of outstanding shares ofcommon stock during the fiscal year
(thousand shares)

24,20525,163--24,20525,163

105,429

100,316(Note) 1. The diluted net income per share for the consolidated fiscal year under review is not stated because there are no dilutive
shares outstanding.
2. In calculating net income per share, treasury shares held in trust accounted for in shareholder’s equity are included in
the number of own shares which is deducted from the average number of outstanding shares of common stock for the
fiscal year. For the fiscal year ended March 31, 2022, the average number of own shares outstanding deducted for the
purposes of calculating net income per share was 400,435. The average number of own shares at the end of the fiscal
year ended March 31, 2021 was 441,508.

(Significant subsequent events)
On May 13, 2022, the Board of Directors of the Company resolved to repurchase its own shares pursuant to
Article 156 of the Companies Act of Japan, applied pursuant to Paragraph 3, Article 165 of the Companies Act.
1. Reasons for share repurchase
To enhance shareholder return and to facilitate flexible implementation of capital policy in response tochanges in the business environment.
2. Type of shares to be repurchased
Common stock
3. Total number of shares to be repurchased
Up to 1,350,000 shares (1.36% of outstanding shares excluding treasury stock)
4. Total repurchase amountUp to 2.0 billion yen
5. Repurchase period
May 16, 2022 to September 30, 2022
6. Repurchase method
Market purchases on the Tokyo Stock Exchange- 27 -