Presentation Materials

March, 2022
MIRAIT Holdings Corporation

Table of Contents
Ⅰ

Overview of the MIRAIT Groupand Business

Ⅱ

Financial Results

Ⅲ

FYE 3/22 Full-year Forecast
and Shareholder Returns

Ⅳ

TopicsⅠ．Overview ofthe MIRAIT Groupand Business1. Overview of MIRAIT Holdings (As of December 31, 2021)
Established
Location
President (CEO)October 1, 2010
5-6-36 Toyosu, Koto-ku, Tokyo
Toshiki Nakayama

Stock listing

1st Section of the Tokyo Stock Exchange (Code: 1417)

Business
description

Telecommunications engineering work, electrical work, civil engineering workand building construction work; management of subsidiaries and Group
companies

Credit ratings

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

Office network【Domestic】49 locations *Total of MIRAIT, MIRAIT Technologies, TTK, SOLCOM and Shikokutsuken【Overseas】29 locations (Singapore, Sri Lanka, Australia, Philippines, etc.)

Number of
employees【Consolidated】 13,429（MIRAIT Holdings（MIRAIT（MIRAIT Technologies（Lantrovision（TTK（SOLCOM（Shikokutsuken: Tokyo: Osaka: Singapore: Sendai: Hiroshima: Imabari110)
5,561）
3,154）
1,234）
1,118）
1,551）
701）3

２. Origin of Company NameOur company name combines ”MIRAI” (future)and “IT”; it expresses our commitment to becomea “comprehensive engineering and services
company” that strives to grow with our customers.
＜2 key words＞
ＭＩＲＡＩＴ ・・・”MIRAI”＝future
ＭＩＲＡＩＴ ・・・ InformationTechnology

Toshiki Nakayama,
President and CEO

4

３. Management Integration of the Mirait Group－2018.9
2010.10MIRAIT Holdings Corporation

MIRAIT Holdings Corporation

MIRAIT Corporation

Establishment ofholding company

MIRAIT Technologies Corporation

October, 2010MIRAIT Corporation(Headquarters) Tokyo

MergerExpansion of global
business
Change ofTrade Name

June, 2016

Lantrovision(S)Ltd(Headquarters) Singapore

Further integration

MIRAIT Technologies
Corporation

TODENTSU
Corporation(Headquarters) Miyagi Sendai

October, 2012

(Headquarters) Osaka

Commuture
Corporation

October, 2018

TTK Co., Ltd.

Established in December 1944

Established in February 1946

Lantrovision(S)Ltd

October, 2012MIRAIT Holdings Corporation

Daimei Telecom
Engineering
Corporation

2019.1－January, 2019

SOLCOM Co., Ltd.
(Headquarters) Hiroshima
January, 2019

Shikokutsuken Co., Ltd.
(Headquarters) Ehime Imabari

Established in June 1960

Strengthening the group’sbusiness operations
Expansion ofBusiness Domains

5

4. Current Industry Conditions (As of December 31, 2021)
Communication construction companies

As of July 2018 （ 3 groups + 9 companies ）Nationwide operation of business

October 2018- (3 groups)

Regional
operation of business

MIRAIT HD GroupMIRAITMIRAIT HD Group
TTK
SolcomMIRAIT
Technologies

COMSYS HD Group
Nippon COMSYSSANWA COMSYS Engineering
TOSYS
Tsuken（Sendai）（Hiroshima）

TTK

MIRAIT※ Merger scheduled for 10/2018

SolcomShikokutsuken（Imabari）

MIRAIT
Technologies

NDS（Nagoya）

SYSKEN（Kumamoto）

Hokuwa（Toyama）※ Merger scheduled for 1/2019

Shikokutsuken※ Merger scheduled for 1/2019

COMSYS HD GroupＮＤＳ
ＳＹＳＫＥＮ

Hokuwa※ Merger scheduled for 10/2018

Kyowa Exeo GroupKyowa Exeo
Daiwa Communication Facilities
EXEO TECH CORPORATION

C-Cube（Nagoya）

Seibu Electric（Fukuoka）
Industry
Nippon Dentsu （Osaka）

Exeo Group
C-CubeSeibu Electric Industry
Nippon Dentsu※ Merger scheduled for 10/2018

6

5. Historical Performance(Unit: bil. yen)

(Unit: bil. yen)

500

35.0

Integration of regional
telecommunication
construction companies

250

17.5

Profit decline due to unprofitable projects⇒Tightened criteria for receiving orders⇒Tightened management of projects

02022.30.0

2022.32011.3 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 2018.3 2019.3 2020.3 2021.3 (Foreca（Forecast）

st)
Net sales(LHS)

246.6

236.0

271.0

277.7

283.7

269.5

283.2

312.9

375.9

441.1

463.7

480.0

Operating income(RHS)

4.9

5.2

10.8

11.4

14.1

6.1

10.0

16.7

20.6

21.9

30.1

32.0

Operating income ratio

2.0%

2.2%

4.0%

4.1%

5.0%

2.3%

3.5%

5.3%

5.5%

5.0%

6.5％

6.7%

7

6. Business Structure■Business Structure■Overview of business categories

Business categories

Nontelecom

480.0

500.0

463.7

① NTT Business

441.1② Multi-carrier Business

375.9③ Environmental & Social
Innovation Business

120.8
312.9

④ ICT Solution BusinessTelecom

208.4 bil. yen（45％）

255.2 bil. yen
（55％）

84.6

58.1

97.2

98.2

105.0

156.3

157.0

160.0

2020.32021.32022.3（Forecast）

56.3

Environmental43.6& Social

Multicarrier

61.5

66.7

Te l e c o m

Non-telecom

250.0

153.5

98.7

ICT

■Net sales ratio (FYE March 2021)

150.3

92.5

84.1
ＮＴＴ

Non-telecom

Telecom(Unit: bil. yen)

128.3

100.5
0.0
2018.32019.38

Ⅱ．Financial Results

1. Financial Overview for the Nine Months Ended December 31, 2021
FYE March 2021
Units: bil. yen

FYE March 2022

FYE March 2021

YoY Change

Full-year
Results(c)

FYE March 2022
Full-year
Forecast(d)

Q3 actual results(a)

Q3 actual results(b)

Orders received

351.2

358.2

＋7.0

+2.0%

474.9

74.0%

490.0

73.1%

Net sales

304.4

324.5

＋20.1

+6.6%

463.7

65.6%

480.0

67.6%

Gross profit(Gross profit margin)

37.5(12.3%)

43.5(13.4%)＋6.0(+1.1p)+16.0%

60.7

61.8%

63.9

68.1%

SG&A
(SG&A ratio)

22.1(7.3%)

24.4(7.5%)＋2.3(+0.2p)+10.4%

30.6

72.2%

31.9

76.5%

Operating income(Operating income ratio)

15.4(5.1%)

19.1(5.9%)＋3.7(+0.8p)+24.0%

30.1

51.2%

32.0

59.7%

Ordinary Income(Ordinary income ratio)

16.9(5.6%)

20.1(6.2%)＋3.2(+0.6p)+18.9%

31.7

53.3%

33.5

60.0%

Profit attributable toowners of parent(Profit margin)

13.9（4.6%）

15.2(4.7%)＋1.3(+0.1p)

+9.4%

24.2

57.4%

22.5

67.6%

Construction accountcarried forward

197.1

195.3

－1.8

－0.9%

161.6

―

―

―

Amount(b)－(a)%(b)／(a)Progress(a)／(c)Progress(b)／(d)* Figures are rounded down to one decimal place (bil. yen)
* The "Accounting Standard for Revenue Recognition" has been applied since FYE March 2022.

10

２．Orders Received, Net Sales and Construction account carried forward
Orders received
Units: bil. Yen

FYE March 2021
Q3 actual
results(a)

Q3 actual
results(b)

FYE March 2022
YoY Change
Amount%(b)－(a)(b)／(a)FYE March 2021
Full-year
Progress
Results(a)／(c)(c)

FYE March 2022
Full-year
Progress
Forecast(b)／(d)(d)

NTT business

118.8

118.3

－0.5

－0.4%

164.4

72.3%

155.0

76.3%

Multi-carrier business

82.7

85.2

＋2.5

＋3.0%

110.7

74.7%

104.5

81.5%

Environmental & social
innovation business

35.8

42.2

＋6.4

＋17.9%

51.0

70.2%

69.0

61.2%

ICT solution business

113.8

112.4

－1.4

－1.2%

148.7

76.5%

161.5

69.6%

Total

351.2

358.2

＋7.0

＋2.0%

474.9

74.0%

490.0

73.1%

Net sales
Units: bil. Yen

FYE March 2021
Q3 actual
results(a)

Q3 actual
results(b)

FYE March 2022
YoY Change
Amount%(b)－(a)(b)／(a)FYE March 2021
Full-year
Progress
Results(a)／(c)(c)

FYE March 2022
Full-year
Progress
Forecast(b)／(d)(d)

NTT business

107.4

114.7

＋7.3

＋6.8%

157.0

68.4%

160.0

71.7%

Multi-carrier business

65.3

69.8

＋4.5

＋6.9%

98.2

66.5%

105.0

66.5%

Environmental & social
innovation business

38.0

35.7

－2.3

－6.1%

58.1

65.4%

61.5

58.0%

ICT solution business

93.5

104.3

＋10.8

＋11.6%

150.3

62.2%

153.5

67.9%

Total

304.4

324.5

＋20.1

＋6.6%

463.7

65.6%

480.0

67.6%

Construction account FYE March 2021
Q3 actual
carried forward
Units: bil. Yen

results(a)

Q3 actual
results(b)

FYE March 2022
YoY Change
Amount%(b)－(a)(b)／(a)NTT business

45.2

44.8

－0.4

－0.9%

Multi-carrier business

64.9

75.6

＋10.7

＋16.5%

Environmental & social
innovation business

39.5

41.0

＋1.5

＋3.8%

ICT solution business

47.4

33.7

－13.7

－28.9%

Total

197.1

195.3

－1.8

－0.9%

* Figures are rounded down to one decimal place (bil. yen).

11

3. NTT Business Construction, maintenance and operation of fixed communication facilities of NTT.
Centered on the Greater Tokyo and Kansai regions.
（ Net sales ）（Unit: bil. yen）

156.3

157.0

160.0

Capital investments by NTT East and NTT West
（Unit: bil. yen）

128.3
3Q

100.5

549.6

541.0

522.5

527.4

510.0

2Q
Of which,
optical-related
work

1Q

FYE 3/18

FYE 3/19

FYE 3/20

FYE 3/21

FYE 3/22（Forecast）

154.0

161.0

150.0

156.0

154.0

FY2017FY2018FY2019FY2020

FY2021（Plan）(Notes) 1. NTT figures based on IFRS from FYE 3/2018 (Regional communications business)
2. Figures for optical-related work from FYE 3/2019 reflect investment plans submitted
to the government.
Source: MIRAIT from company information

124. Multi-carrier Business Nationwide works on construction, maintenance and operation of communications
facilities of all mobile carriers.
 Fixed communication equipment for NCCs, CATV work, global business.

（ Net sales ）（Unit: bil. yen）

92.5

97.2

98.2

105.0

（Unit: bil. yen）
Docomo84.1
3.3

FYE 3/18

FYE 3/19

FYE 3/20

FYE 3/21

8.3

RAKUTEN
335.9

508.9

187.1

369.7

421.9

400.0

601.7

615.0

627.9

630.0

577.0

593.7

572.8

569.1

550.0

FY2017FY2018FY2019FY2020

350.0

2Q

560.8

FYE 3/22（Forecast）

Soft Bank

381.6

3Q

1Q

KDDI

FY2021（Plan）(Notes) Rakuten figures reflect total mobile-related capital investments
Source: MIRAIT from company information

13

5. Environmental & Social Innovation Business Offering comprehensive solutions for the construction and maintenance ofenvironmental/ new energy-related facilities, social infrastructure, electrical/
air conditioning facilities, etc.
（ Net sales ）（ Breakdown of net sales ）（Unit: bil. yen）

（Unit: bil. yen）

66.7
58.1

56.3

61.5

Electric, air conditioning

Civil engineering

Solar power

Battery

EV charging

66.7
43.6

58.1

56.3
3Q

61.5

43.6

2Q
1Q
FYE 3/18

FYE 3/19

FYE 3/20

FYE 3/21

FYE 3/22（Forecast）

FYE 3/18

FYE 3/19

FYE 3/20

FYE 3/21

FYE 3/22(Forecast)14

6. ICT Solution BusinessSupport to create ICT infrastructure such as cloud, office solutions, Wi-Fi
and broadcasting networks.
（ Net sales ）（ Breakdown of net sales ）（Unit: bil. yen）

150.3

153.5

120.8

（Unit: bil. yen）
Stock Business

Lantrovision

LAN・PBX

Broadcasting

Wi-Fi

Software

Goods Sales, Other

98.7

153.5

120.8

3Q

84.6

150.3

98.7
84.6
2Q

1Q

FYE 3/18

FYE 3/19

FYE 3/20

FYE 3/21

FYE 3/22（Forecast）

FYE 3/18

FYE 3/19

FYE 3/20

FYE 3/21

FYE 3/22(Forecast)

15

Ⅲ．FYE 3/22
Full-year ForecastandShareholder Returns

1. Medium-term Plan (FYE 3/20~3/22) targets versus actual
Medium-term Target（for FYE 3/22）

Actual（FYE 3/21）

Net sales

450.0 bil.yen

463.7 bil. yen

Op. income

27.0 bil. yen

30.1 bil. yen

Op. income ratio

ROE

6%

more than 8%

6.5％
11.0%

Targets achieved one year in advance17

2. FYE 3/22 full-year forecast

Upward revision of initial forecast

490.0 bil. yen (+10.0)
470.0 ⇒ 480.0 bil. yen (+10.0)
30.5 ⇒ 32.0 bil. yen (+ 1.5)
21.0 ⇒ 22.5 bil. yen (+ 1.5)

Orders received 480.0 ⇒Net sales
Op. income
Net income

Make the strong earnings results
achieved in FYE 3/21
Mirait’s ”True Potential”

18

３-1. Shareholder return

Strengthening shareholder returns【Initial forecast announced 5/2021】

Dividend increase 45 yen ⇒ 50 yen (2nd consecutive period)
Share repurchase

3.0 bil. yen (3rd consecutive period)【Forecast announced 11/2021】

Further dividend increase in H2:
50yen ⇒ 55 yen【Forecast announced 2/2022】

Additional share repurchase of 2.0 bil. yen⇒Total of 5.0 bil. yen for the full year19

３-2. Shareholder return
dividend amount

Dividend per share

share repurchase+ 10 yen/ year

amountShare repurchase

5.0 bil. yen/ year
unit:
bln. yen

2018.32019.32020.32021.32022.32022.3（Forecast）

Annual dividend
per share

35yen

40yen

40yen

45yen

55yen

Dividend payout
ratio

24.1%

23.6%

26.7%

19.6%

24.5%

－

－

10.4 bil.
yen

9.5 bil.
yen

5.0bil.
yen

95.4％

59.0％

46.6%

Share
repurchaseTotal
shareholder
return ratio

24.1％

※

※
※

23.6％

Total shareholder
return ratio(Note) FYE 3/2019 figures in ※ exclude the impact of extraordinary gains from the recent acquisitions (negative goodwill of 10.0 bil. yen).

20

Ⅳ．Topics
Ⅰ-1〜2. Acquisition of Seibu Construction Co. Ltd.
Ⅱ-1〜5. Transforming the Business Structure
Ⅲ-1〜8. Achieving growth at the New Group－ Business transformation andthe “Five Changes” －Ⅰ-1.Acquisition of Seibu Construction Co. Ltd.
 Acquisition of 95% ownership in Seibu Construction Co. Ltd., a Seibu Group company, tomake it a consolidated subsidiary (announced Jan 27, 2022).

 Acquisition value: approx. 62.0 bil. yen (estimate)/ Acquisition date: March 31, 2022

Outline of Seibu Construction Co. Ltd.
EstablishedNov. 11, 1941

◎Employs highly-skilled certified engineers, etc.

Founded1941 (80 years)◇ 1st class architects: 73

Head office

Tokorozawa-shi,
Saitama◇ 1st class building construction managing
engineers: 180

Representative
Director Makoto Sato

◇ 1st class civil engineering managing

Paid-in capital 11.0 bil. yen◇ Railroad construction managers: 154

engineers: 220

Business domain

Comprehensive construction company engaging incivil engineering, building and other construction work22

Ⅰ-2. Synergies with Seibu Construction Co., Ltd. (image)Operations based on “Full-value Model”
Ref: Outline of ＮＥＸＴ ＭＩＲＡＩＴ Ｇｒｏｕｐ Ｖｉｓｉｏｎ 2030(tentative)

Vertical integration

Planning/
proposal

Horizontal integration

×Mobile/access×

ＩＣＴ×

DesignElectrical/ facility

Construction

×Prime function ofComprehensive construction work

Seibu Construction

strengths

×

Civil
solar/
engineering
Renewables

×EMS

ＩｏＴ/５Ｇ
Operation/
maintenance× Building

Smart
Civil engineerring

Advanced building and civilengineering capabilities

Business strategy

Deployment of “community creation” and ”green energy” businesses

23

Ⅱ-1.

Transforming the Business Structure

Ａ

Ｂ

Solutions and othernew domains as corebusinesses

Improving profitability ofexisting business withcarriers“With COVID-19”

Ｃ

Strengthening
the management base・ Group management・ HR・ IT systems

・ Brand・ Safety/quality
24

Ⅱ-2.

Transforming the Business Structure”Super Telecommunications
Construction Company”
Solutions/ new(frontier)businesses
Ｂ Market
Private and public
sector entities
Direct/ channel sales

Telecom carrier businessTelecom
carriers

FY2013

FY2019FY2022～25

Outline of New Company

Ⅱ-3.

Adoption of division company system
Agile and flexible business operations
Solutions business

SolutionsCompany

Carrier business

East Company

West Company

Consolidation of back-office/ common functions
Strengthen management base through consolidation/achieve outstanding efficiency
・General Affairs ・PR ・Finance/ accounting
・HR・Audit・IT systems etc.

Consolidate26Ⅱ-4. Progress on establishment of the New Group andmerger of three companies
STEP１

STEP２

FY2022

FY2021
Apr

Jul

Oct

Present

▼

▼

▼

▼

Launch of “ONE TEAM”

Merger of three companies/
establishment of New Group＜ Strengthen group coordination ＞

New Group
EntityＭＲＴＳＯＬNew Business

July 2021
New Company Preparation
Office established

ＴＴＫ

Solutions Business

ＭＴＣ

Carrier Business(East/ West)

SI Business restructuring
under consideration

Frontier Business

Global Business

Solutions Business

ＨＤ▼ July（plan）

ＬＴＶ

ＳＴＫ
27

Ⅱ-5. Outline of three companies merger（As of July 1, 2022）
Before Merger

After Merger
Change ofTrade Name

Absorption-typeMergerLantrovision(s)Ltd 【Singapore】

Lantrovision(s)Ltd 【Singapore】

TTK Co., Ltd.

TTK Co., Ltd.

SOLCOM Co., Ltd.

【Tohoku】【Chugoku】

Shikokutsuken Co., Ltd.【Shikoku】

SOLCOM Co., Ltd.

【Tohoku】【Chugoku】

Shikokutsuken Co., Ltd.【Shikoku】

Seibu Construction Co.Ltd.

28

Ⅱ-6. Change of Trade Name
New Trade Name

July 1, 2022 (scheduled)

The Company will change its trade name with the intention
to coordinate and unify the Group and to embrace thechallenge of new areas based on the transition from aholding company to an operating holding company ahead of
the integration with its wholly owned subsidiaries MIRAIT
Corporation and MIRAIT Technologies Corporation
scheduled for July 2022.
※The Company’s trade name will be changed on the condition that the proposal for a “Partial Amendment to
the Articles of Incorporation” is approved at the 12th General Meeting of Shareholders to be held in June 2022.

29

Achieving growth at the New Group

Ⅲ-1.

World

Societal Issues

Japan

Earth
Redefine Purpose and Mission

To be announced
in May 2022

Ｖf

Being formulated by
all management andemployees

f

f

Ｐ Ｍ

Regions andcommunities

NEXT MIRAIT Group Vision 2030 （tentative）

Important societal issues to be addressed(Materiality)f

New Growth
Ｓ
Strategy
30

Ⅲ-2.

Ｅ

Important societal issues to be addressed(Materiality)

Creating and preserving an environmentally-friendly society●Realize a carbon-free society through business activities●Contribute to the creation of environmentally-friendly and resilient communities

Ｓ Creating and preserving a safe, secure and prosperous society●Improve safety and quality●Create social values through partnerships and collaboration

Ｓ

Creating and preserving a society that respects and promotes thediversity of people and cultures●Promote development of human resources, workstyle reform andhealth management●Promote respect for human rights and D&I

Ｇ Creating and preserving a fair and transparent corporate group●Enhance corporate governance●Thorough compliance●Thorough risk management31

Business transformation andthe “Five Changes”

Ⅲ-3.

Ｅ

Ｓ

５ Ｃｈａｎｇｅｓ

Ｇ

Ｃｈａｎｇｅ １

People-centricmanagement
Ｃｈａｎｇｅ２

Acceleration ofbusiness growth

Ｃｈａｎｇｅ ４

Ｃｈａｎｇｅ ５

Top-classprofitability

Ｃｈａｎｇｅ ３

Management based on data insights

Strong foundation for ESG management
32

Ⅲ-4.

People-centric Management

Ｃｈａｎｇｅ １

Company full of
excitement
Transformation of business/acceleration of growth
Changing societies and the future
Organization with talented human capitalMulti-skilled
staff

Flexible allocation ofhuman capital

Data-based
education

Development ofprofessionals/
managers“Mirai (Future)” University (in-house education)
Creating a “good company” for employees
MIRAIT Group’s workstyle reform - “Smart Work”“Safe”
management“Healthy”
management
33

Ⅲ-5.

Ｃｈａｎｇｅ２

Acceleration of business growth

to dateFrontier
domains

・NTT

・ICT

・Multi-carrier

・Environmental
and social
innovation

Future domains
Shift toFull-Value ModelBasedomains

Resource allocation to “Future Domains”

Accelerate “community creation” and“enterprise DX/GX” businesses
Launch green power business

Topic 1

Software company as a
strategic sub.

Topic 2

Expand global businesses
Concentration of resources

mix of existing andnew businesses

Communication
foundation domain

Enterprise/environmental
and social
foundation domain
34

Ⅲ-6.

Ｃｈａｎｇｅ２

Launch of green power business

Topic (1)

Launch of business to build and sell green power
generation facilities and sale of green power

Creating new value throughrenewable energy businessContribute togreening the society● Building and selling of
power generation
facilities● PPA business(sale of electricity)● Self-consumption

Scheduled tolaunch businessin H2 FY2021
35

Ⅲ-7.

Ｃｈａｎｇｅ２

Software business as a strategic subsidiary
Topic (2)New Strategic SI Co.

New Group Entity

Mirait SI Business Division × Mirait Information System

ＭＲＴ

ＭＴＣ
Trust System

ＭＲＴ

TIMETEC

ＭＲＴ

ACTIS

ＭＴＣ

CREiST

ＭＴＣ● Centralize softwarerelated management
resources to further
specialize and advancecapabilities● Improve flexibility andagility● Enhance value forcustomers using cuttingedge technology

Contribute to customers’ business
transformation through DX

Reorganization
scheduled forJuly 2022
36

Ⅲ-8.

Initiatives to strengthen ESG-based
management (Step 1)
Establishment of ESG management system
Ｃｈａｎｇｅ ５

Established committee to promote ESG management (Sep. 2021)
Board of Directors
Management Meeting
ESG Management Promotion Committee

Chairman：CEO
Members ：CEOs of group companies/
executive officers

Secretariat：ESG Promotion Department

Environmental initiatives (adoption of TCFD recommendations)
Adopted TCFD recommendations (Oct. 2021); to actively disclose information
Evaluation of climate risks and opportunities
and disclosure of future financial impact

Also participated in the TCFD Consortium

37

Building and Maintaining a Bridge to the FuturePrecautionary Statement
Statements and quotes relevant to the forecasted values in thishandout are the future prospects based on the plans and prospects of
the Company at this point in time.
The actual business results could be significantly different from thosestated in this handout due to changes in conditions.
As such, please be advised that we will not be able to guarantee theaccuracy of the forecasted values, in this handout and the session,over the period of time to come in the future.

MIRAIT Holdings Corporation