Consolidated Financial Results
for the Nine Months Ended December 31, 2019 [Japanese GAAP]
February 4, 2020
Company name:MIRAIT Holdings Corporation
Stock exchange listing: TSE
Code Number:1417
URL: https://www.mirait.co.jp/
Representative:
Masatoshi Suzuki, President and CEO
Contact:
Masakazu Tsukamoto, Director and CFO
Phone +81-3-6807-3124
Scheduled date for filing of quarterly report:
February 10, 2020―
Scheduled date for commencement of dividend payment:
Supplementary briefing materials on quarterly results:
Available
Quarterly results briefing:
None(Amounts are rounded down to the nearest one million)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2019
(April 1, 2019 to December 31, 2019)(1) Consolidated Operating Results (cumulative)(% indicates change from the same period of the previous fiscal year)
Net sales

Ordinary income%

million yen%

million yen%

million yen

%

25.4

9,064

(8.1)

10,362

(4.5)

6,304

(27.8)

11.4

9,860

13.9

10,850

12.3

8,727

50.5

million yen

Nine months ended
288,507
December 31, 2019
Nine months ended
230,051
December 31, 2018
(Note) Comprehensive income:Nine months ended December 31, 2019
Nine months ended December 31, 2018

Net income per share

Diluted net income
per share

yen

yen

63.31

－

106.04

92.36

Nine months ended
December 31, 2019
Nine months ended
December 31, 2018

Profit attributable toowners of parent

Operating income

8,597 million yen (22.2%)
7,036 million yen (-8.8%)(2) Consolidated Financial Position
Total assets

Net assets

million yen

As of December 31, 2019
As of March 31, 2019
(Reference) Equity:

Equity ratio

million yen

318,675
331,462
As of December 31, 2019
As of March 31, 2019%

201,251
199,559
207,122 million yen
196,435 million yen

65.0
59.3

2. Dividends
Annual dividends per share
End of 1Q
yen

End of2Q
yen

End of 3Q
yenYear-end
yen

Fiscal year ended
－
－
20.00
20.00
March 31, 2019
Fiscal year ending
－
－
20.00
March 31, 2020
Fiscal year ending
March 31, 2020
20.00
(forecast)(Note) Revision of dividend forecasts from recently announced figures: None

Total
Yen

40.00

40.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2020
(April 1, 2019 to March 31, 2020)(% indicates change from the same period of the previous fiscal year)
Profit
Net income per
Operating income Ordinary income
attributable toshareowners of parent

Net sales

Full year ending
March 31, 2020

million yen%

million yen%

million yen%

430,000

14.4

21,5003.9

23,000

4.6

million yen%

Yen

15,000 (41.7)

147.76(Note) Revision of financial results forecasts from recently announced figures: None

* Notes:(1) Significant changes in subsidiaries during the period under review: None
(2) Application of specific accounting practices for preparing consolidated quarterly financial statements: Yes(3) Changes in accounting principles and changes or restatements of accounting estimates:
1) Changes in accounting principles due to revision of accounting standards: None
2) Changes in accounting principles other than 1) above: None
3) Changes in accounting estimates: None
4) Restatements: None
(4) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury stock):
December 31, 2019108,325,329 shares

March 31, 2019108,325,329 shares2) Total number of treasury stock at the end of the period
December 31, 2019

956,054 shares

3) Average number of shares outstanding
December 31, 2019

March 31, 2019

6,746,565 shares

during the period

99,581,911 shares

December 31, 201882,304,692 shares(Note) Total number of treasury stock includes the Company’s stock held by the Board Incentive Plan trust under theCompany’s performance-linked stock remuneration program for directors and executive officers.

*
-

*
-

Implementation status of quarterly review processes
This quarterly summary of consolidated financial results is not subject to the quarterly review procedures
stipulated under the Financial Instruments and Exchange Act.

Explanation regarding the appropriate use of performance forecasts, and other items warranting
special mention
The performance forecasts and other forward-looking statements in this report are based on information
currently available to the Company and on certain assumptions deemed to be reasonable. Accordingly, actual
performance may differ materially depending on various factors.

Table of Contents: Supplementary Materials

1. Overview of Operating Results and Financial Position

P. 2(1) Overview of Operating Results for the Period under Review

P. 2(2) Overview of Financial Position for the Period under Review

P. 3(3) Future Outlook

P. 3

2. Notes to Summary Information (Explanatory Notes)

P. 3(1) Changes in Important Subsidiaries during the Period under Review

P. 3(2) Application of Specific Accounting Practices for Preparing Consolidated Quarterly Financial

P. 3

Statements
3. Consolidated Quarterly Financial Statements and Notes

P. 4(1) Consolidated Quarterly Balance Sheets

P. 4(2) Consolidated Quarterly Statements of Income and Comprehensive Income

P. 6(3) Notes to Consolidated Financial Statements

P. 8(Notes on going concern assumption)

P. 8(Notes on significant changes to shareholders’ equity)

P. 8(Additional information)

P. 8

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1. Overview of Operating Results and Financial Position(1) Overview of Operating Results for the Period under Review
During the first nine months of the current consolidated period (from April 1, 2019 to December 31, 2019), theJapanese economy continued to recover moderately on the back of strong corporate earnings and steady
improvement in labor market conditions, despite the lack of visibility amid uncertainties in the global economy
and the impact of natural disasters.
In the information and telecommunications sector, in which the MIRAIT Group operates its mainstay business,
the telecommunication carriers, the key customers of the Group, are changing their business models. Specifically,in the mobile communications area, services offered through fourth-generation mobile telecommunication
systems (4G) and new frequencies are expanding. In addition, new services are expected to emerge with thelaunch of fifth-generation mobile telecommunication systems (5G). Moreover, the business environment for the
MIRAIT Group continues to evolve dramatically with the rise in demand for new solutions using cloud, Wi-Fi
and other technologies in light of the upcoming full-fledged era of IoT, and the acceleration of the rebuilding ofsocial infrastructure created during Japan’s high-growth period, particularly in the Tokyo Metropolitan area
where the Tokyo Olympic and Paralympic Games will be held very soon. Meanwhile, the MIRAIT Group faces
challenges brought about by societal issues such as the aging population, shortage of labor and workstyle reforms.
In response to the structural changes in the society and the telecommunications environment, the MIRAITGroup is striving to further enhance its corporate value and to achieve sustainable growth as a “Comprehensive
Engineering and Services Company”. Specifically, the Group adopted a new Medium-term Management Planfor the three years starting in the fiscal year ending March 2020 (target for FYE March 2022: net sales of 450.0
bil. yen, operating income of 27.0 bil. yen (operating income ratio of 6.0%) and ROE of more than 8%). Under
the new management plan, the Group is expanding operations in various business areas with growth opportunities(the “frontier domains”), such as the stock business including datacenter operations and maintenance, theenvironment/ energy-related business and the global business. The Group is also taking steps to boost
productivity in existing businesses and to generate synergies within the Group to enhance management efficiency.
During the first nine months, the MIRAIT Group made efforts to grow facility management operations andfacility improvement proposals in the NTT business, and to win orders for work in new frequencies in 4G andfor the upcoming commercial launch of 5G in the Multi-carrier business. Moreover, in light of the full-scalelaunch of 5G, the Group participated in verification tests to for the practical application of new technologies,
while launching a new training center to develop “multi-skilled engineers” who are able to handle both fixed andmobile communication-related construction and maintenance work.
Furthermore, the Group added Tokai Koei Co., Ltd. as a subsidiary to expand water and sewage construction
work and promoted the completion of solar power generation projects in the Environmental & Social Innovation
business, increased domestic PBX/LAN work and launched full-scale operations at the Osaka No.1 Datacenterin the ICT Solutions business, and increased sales of goods such as mobile-related peripheral materials and PCs/servers for schools, to achieve net sales growth.
As for the Company’s decision to exercise the right of early redemption of the yen-denominated convertible
bonds with stock acquisition rights due 2021 on December 30, 2019, all stock acquisition rights were exercised
and the respective amount of the Company’s treasury stock were transferred by the redemption date.
The consolidated financial results for the nine months ended December 2019 reflect the contribution ofsubsidiaries that were acquired in the previous fiscal year (TKK Co., Ltd., SOLCOM Co., Ltd. and
Shikokutsuken Co., Ltd.). Orders received increased by 25.2% year-on-year to 334,547 million yen and net sales
increased by 25.4% year-on-year to 288,507 million yen. However, operating income decreased by 8.1% yearon-year to 9,064 million yen, ordinary income decreased by 4.5% year-on-year to 10,362 million yen, and net
income attributable to owners of parent decreased by 27.8% year-on-year to 6,304 million yen, due delays in thecompletion of certain projects, among other factors.

-2-(2) Overview of Financial Position for the Period under Review
Total assets at the end of the third quarter of the current consolidated fiscal period amounted to 318,675 million
yen, a decrease of 12,787 million yen from the end of the previous fiscal year. This was mainly due to the decreasein accounts receivables including those from completed construction contracts, which more than offset theincrease in costs on construction contracts in progress.
Total liabilities decreased by 23,479 million yen from the end of the previous fiscal year to 108,423 million
yen. This was mainly due to the early redemption of convertible bonds, as well as the decrease in accounts
payable for construction contracts and income taxes payable.
Net assets increased by 10,692 million yen from the end of the previous fiscal year to 210,251 million yen.
Although the Company paid dividends of 3,962 million yen repurchased its own shares of 10,453 million yen,
this was more than offset by the net income attributable to owners of parent of 6,304 million yen and the transferof treasury shares of 18,647 million yen due to the early repayment of convertible bonds.
As a result of the above, the equity ratio at the end of the third quarter stood at 65.0% (compared to 59.3% at
the end of the previous fiscal year).

(3) Future Outlook
The consolidated financial results forecast for the fiscal year ending March 31, 2020, as announced on May 9,
2019, remains unchanged.

2. Notes to Summary Information (Explanatory Notes)(1) Changes in Important Subsidiaries during the Period under Review
Not applicable.
(2) Application of Specific Accounting Practices for Preparing Consolidated Quarterly Financial Statements
Calculation of tax expense
Tax expenses are calculated by reasonably estimating the effective tax rate after applying tax effectaccounting against income before income taxes for the current fiscal year, including the third quarter ended
December 31, 2019, and then multiplying income before income taxes for the nine months with the said
estimated effective tax rate.
The statutory tax rate is applied if the tax expense calculated using the estimated effective tax rate lacks
rationality to a significant degree.

-3-3. Consolidated Quarterly Financial Statements and Notes(1) Consolidated Quarterly Balance Sheets(Millions of yen)
Fiscal Year Ended
March 31, 2019

Nine Months Ended
December 31, 2019

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed construction
contracts and other
Costs on construction contracts in progress
Investments in leases

38,20633,340133,364

92,481

28,4004,983

52,214
4,620

6,188
(58)

8,500
(389)

211,085

190,768

Buildings and structures, net
Land38,07931,70739,22632,806

Construction in progress
Other, net

699
8,354

611
9,644

Total property, plant and equipment

78,84082,289Customer related assets
Goodwill

2,060
3,220

1,900
2,981

Software
Other

1,656
121

1,617
145

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Intangible assets

Total intangible assets

7,058

6,644

Investments and other assets
Investment securities

27,12331,185Retirement benefit asset
Deferred tax assets

2,433
1,835

2,571
2,156

Leasehold and guarantee deposits
Other

1,337
1,890

1,382
1,843

Allowance for doubtful accounts

(144)

(166)

Total investments and other assets

34,47638,972

120,376

127,906

331,462

318,675

Total non-current assets
Total assets-4-

(Millions of yen)
Fiscal Year Ended
March 31, 2019

Nine Months Ended
December 31, 2019

Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts and other
Short-term borrowings

50,894
3,602

47,011
10,530

Income taxes payable
Lease obligations

4,667
2,958

733
3,129

Advances received on construction contracts in progress
Provision for loss on construction contracts

5,549
515

5,052
1,191

Provision for bonuses
Provision for bonuses for directors (and other officers)

7,035
148

3,398
70

Provision for warranties for completed construction
Other

9
13,5258
8,805

Total current liabilities

88,90879,931

Convertible bond-type bonds with share acquisition rights
Long-term accounts payable - other

16,544
159－
208

Lease obligations
Deferred tax liabilities

6,873
1,285

6,592
2,575

41
180

41
117

194
17,213257
17,530

114
385

171
995

Non-current liabilities

Deferred tax liabilities for land revaluation
Provision for retirement benefits for directors (and other officers)
Provision for share based compensation
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

42,99428,492

131,903108,423

Net assets
Shareholders' equity
Share capital

7,000

7,000

Capital surplus
Retained earnings

71,559124,287

69,474
126,630

Treasury shares(9,684)(1,381)

Total shareholders' equity

193,163

201,723

Valuation difference on available-for-sale securities
Revaluation reserve for land

3,028
(98)

5,858
(98)

Foreign currency translation adjustment
Remeasurements of defined benefit plans

(493)
836

(1,108)747

Total accumulated other comprehensive income

3,272

5,399

3,123

3,128

199,559

210,251

331,462

318,675

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets-5-(2) Consolidated Quarterly Statements of Income and Comprehensive Income
Nine Months Ended December 31, 2019
(Millions of yen)
Nine Months Ended
December 31, 2018

Nine Months Ended
December 31, 2019

Net sales of completed construction contracts
Cost of sales of completed construction contracts

230,051
201,752

288,507257,268

Gross profit on completed construction contracts

28,29931,239Selling, general and administrative expenses

18,43822,175

Operating profit

9,860

9,064

72

81

Dividend income
Surrender value of insurance policies

599
74

905
87

Share of profit of entities accounted for using equity method
Other

216
183

69
358

1,147

1,501

7

36

67
82

30
137

Non-operating income
Interest income

Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses

158

204

10,85010,362Gain on sales of non-current assets
Gain on sales of investment securities

817
615

402
26

Gain on bargain purchase
Other

812
322

－
－

Total extraordinary income

2,568

429

Loss on retirement of non-current assets
Loss on sales of investment securities

106
7

28
57

Loss on change in equity
Other

62
88

－
76

Total extraordinary losses

265

162

Profit before income taxes

13,153

10,629

Income taxes

4,331

4,153

Profit

8,822

6,476

Profit attributable toProfit attributable to owners of parent

8,727

6,304

94

171

Ordinary profit
Extraordinary income

Extraordinary losses

Profit attributable to non-controlling interests-6-

(Millions of yen)
Nine Months Ended
December 31, 2018
Other comprehensive income
Valuation difference on available-for-sale securities

Nine Months Ended
December 31, 2019(1,243)

2,832

(393)
(122)

(618)
(88)

(26)

(3)

(1,785)2,120

Comprehensive income

7,036

8,597

Comprehensive income attributable toComprehensive income attributable to owners of parent

6,953

8,431

83

165

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using equity
methodTotal other comprehensive income

Comprehensive income attributable to non-controlling interests-7-(3) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.

(Notes on significant changes to shareholders’ equity)
1. On May 9, 2019, 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, following which the Company purchased 1,500,000 shares of its common stock of a total amount of
2,488 million yen in the open market. As a result, the Company’s treasury stock increased by the sameamount.
2. On September 10, 2019, the Board of Directors of the Company resolved to repurchase its own sharesthrough the off-hours trading system (ToSTNet-3) pursuant to Article 156 of the Companies Act of Japan,
applied pursuant to Paragraph 3, Article 165 of the Companies Act, following which the Company
purchased 5,000,000 shares of its common stock of a total amount of 7,965 million yen through ToSTNet3. As a result, the Company’s treasury stock increased by the same amount.
3. On December 13, 2016, the Board of Directors of the Company resolved to issue convertible bonds withstock acquisition rights, following which the Company had issued yen-denominated convertible bonds due
2021. The Company transferred 12,173,508 shares of treasury stock of a total amount of 18,647 million yen
to holders of convertible bonds that exercised their stock acquisition rights. As a result, the Company’streasury stock decreased by the same amount, and capital surplus decreased by 2,147 million yen.

-8-