Comprehensive Engineering and Service Company

MIRAIT GroupMIRAIT Group

Integrated report

2021
MIRAIT Holdings Corporation
PR Office5-6-36, Toyosu, Koto-ku, Tokyo, Japan 135-8111
Phone: 81-3-6807-3120 Fax: 81-3-5546-2967

https://www.mirait.co.jp/en/Company Overview

CONTENTS

Overview of MIRAIT Holdings Corporation

03 President’s Message

Promote ESG-oriented Management

06 Our Business

13 MIRAIT Group’s ESG-oriented Management

07 Foundation of Our Business/

17 Realization of a decarbonized society

Date of establishment
October 1, 2010
Head office
5-6-36, Toyosu, Koto-ku, Tokyo, Japan
Representative
NAKAYAMA Toshiki,President and Chief Executive Officer
Capital7 billion yen
Stock Listing
1st Section of Tokyo Stock Exchange(Security code: 1417)

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

Value Creation and Performance

End of fiscal year
March 31

09 Unfolding the Medium-term

Number of employees (consolidated)
12,882 (as of March 31, 2021)*

11 Evolution of Our Business

Management Plan

Number of consolidated subsidiaries
79 (as of March 31, 2021)*Simple tabulation of all companies

Structure Toward
a New MIRAIT Groupthrough business activities

19 Contribution to the creation of environmentally-friendly
and resilient cities and villages

23 Safety and quality improvement
25 Co-creation of social value through collaboration
with partners

27 Promotion of human resource development,
workstyle reform, and health-oriented management

33 Respect for human rights and promotion

SharesTotal outstanding shares 108,325,329

of diversity and inclusion

35 Social responsibilities in the supply chain
36 Helping local communities
37 Enhancing Corporate Governance

List of Group Companies

45 Thorough Compliance

MIRAIT Corporation
M’s Frontier Corporation / DAIMEI TECHNO CO.,LTD. / MIRAIT Solutions Corporation / Tohoken System Engineering
Corp. / Meisei Correspondence CO.,LTD. / MIRAIT Mobile East Co.,ltd. / MIRAIT Mobile West Co.,ltd. / DAIMEI TUSAN
CO.,LTD. / SINKO ELECTRIC CORP. / MIRAIT-X Corporation / TODENTSU Access Corporation / TODENTSU NETWORK
Co.,Ltd / Nissetsu Co., Ltd. / Okisokou Co., Ltd. / Libnet CO., LTD. / TIMETEC Co., Ltd. / Trust System Corporation /HOPE NET Co., Ltd. / Line Connect Corporation / Tokaikoei Inc. / NIPPON Sangyo Corporation / DAIMEI SLK (PRIVATE)LIMITED (Sri Lanka)

46 Thorough Risk Management
47 Financial/Non-financial Data
50 Status of Shareholders

MIRAIT Technologies Corporation
AST-ENG Corp. / Lapisnet Co., Ltd. / COTONET ENGINEERING Co., Ltd. / Ligare Co., Ltd. / Agility RISE Co., Ltd /Comlead Co., Ltd. / Nishinihondenko Corporation / MiratecDrone Corp. / Ground Create Co., Ltd. / KATAKURACONSTRUCTION Co., Ltd. /MIRAIT Information Systems Co.,ltd. / ACTIS Co.,ltd. / CREiST Inc. / Fucom Corp. / Kinki Denki Corp. / MIRAITTechnologies Australia Pty. Limited (Australia) / MIRAIT PHILIPPINES INC. (Philippines)
TTK Co., Ltd.
TTK ENG Miyagi Co.,Ltd / HOKUBU CO.,Ltd / TTK ENG Iwate Co.,Ltd / TTK ENG Aomori Co.,Ltd / TTK ENG Akita
Co.,Ltd / TTK ENG Yamagata Co.,Ltd / TTK ENG Fukushima Co.,Ltd / Tsukada Electrical Construction Co., Ltd
SOLCOM Co.,Ltd.
SOLCOMMEISTER Co.,Ltd. / Yuwakogyo Corporation / Seikenkogyo Co.,Ltd. / Solcom Business Service Corporation /Chugokutsushinshizai Corporation / Dentsushizai Corporation
Shikokutsuken Co., Ltd.
Ochidenki Corporation / STK Techno Corporation

Editorial Policy
This report outlines the policies, plans, activities, and achievements of the MIRAIT Group to
create value in the short, medium and long term. The business and direction of the MIRAITGroup outlined at the beginning of this report explains initiatives to enhance the capital that
supports our businesses. In the report, we then present key initiatives in the business in linewith the outline of the Medium-term Management Plan, and also report on the status ofstrengthening the management foundation with a focus on ESG. We also work to provide a
concise yet comprehensive report about information that includes overall governance as well
as changes in the financial and non-financial performance.

Date of Publication
December 2021
Inquiries
PR Office
MIRAIT Holdings Corporation
5-6-36, Toyosu, Koto-ku, Tokyo, Japan 135-8111
TEL：81-3-6807-3120
Related Information on our website

Lantrovision (S) Ltd. (Singapore)
Lantro (S) Pte Ltd. ／ Lantro (Malaysia) Sdn Bhd. ／ Lantro (Penang) Sdn. Bhd. ／ Lantro (HK) Limited ／ Lantrovision
Korea Co. Ltd. ／ Lantro (Shanghai) Co. Ltd. ／ Hangzhou Lantro Co. Ltd. ／ Lantro Phils. Inc. ／ Lantro (Taiwan) Ltd. ／Lantro Technologies India Pvt Limited ／ Vrnet (S) Pte Ltd. ／ Appsilan Asia Pte Ltd. ／ Infilan Pte Ltd. ／ Adnos Solutiens
Pte Ltd. ／ Innovative Energy Systems & Technology Pte Ltd. ／ Lantro Myanmar Co. Ltd. ／ PT Lantro Technologies
Indonesia ／ YL Integrated Pte Ltd. ／ Sun Power Electrical Pte Ltd. ／ Nectric Engineering Pte Ltd. ／ Shanghai
Changling Communication Equipment Co.,Ltd. ／ Altro Solutions Pte Ltd. ／ Lantro (Thailand) Co. Ltd. ／ Lantro (Vietnam)
Co. Ltd. ／ Lantro (Cambodia) Co. Ltd. ／ Lantrovision Inc.

Including consolidated subsidiaries and overseas subsidiaries (as of July 1, 2021)

01

BoundaryIn this report, we report on the MIRAIT Group as a whole. Please note that numerical dataand some of the information published in this report are of the boundary for which such data
or information is available at the time of publishing this report, as indicated in the text or in
supplementary notices.

• CSR information
https://www.mirait.co.jp/csr/(note: previous reports are also available)

Reporting Period
FY 2020 (April 1, 2020 to March 31, 2021)
Note: This report contains some data outside the above period so far as it complies with theeditorial policy.

• Business Information
https://www.mirait.co.jp/service/• Corporate Information
https://www.mirait.co.jp/company/• IR Information
https://ir.mirait.co.jp/index.html

Guidelines Referenced
International Integrated Reporting Framework issued by the International Integrated Reporting
Council

MIRAIT Group
Integrated report 2021

02

President’s Message

Results (FY 2019)

Results (FY 2020)

Planned Figures (FY 2021)*

Net sales

441.1 bil. yen

463.7 bil. yen

480.0 bil. yen

Operating income

21.9 bil. yen

30.1 bil. yen

32.0 bil. yen

5.0%

6.5%

6.6%

Operating income ratio

formulated due to the establishment of the new MIRAIT Group as aresult of the integration of three companies, namely, MIRAIT Holdings
Corporation, MIRAIT Corporation, and MIRAIT Technologies Corporation(scheduled for July 2022), and projects a vision for the year 2030.
The business strategy is centered on contributing to theresolution of social issues in Japan and overseas. To that end, it has
identified the key social issues that we need to address. In relation to
the growing demand for environmental conservation, it focuses on“Realization of a decarbonized society through business activities”
and “Contribution to the creation of environmentally-friendly andresilient cities and villages.” We will be making more active proposals
from this perspective to companies in various regions, as well as tonational and local governments.
The MIRAIT Group’s Purpose (raison d’etre) and Mission (social
mission) will also be redefined, and will be announced in May 2022.

NAKAYAMA Toshiki
President
and Chief Executive Officer

version of “smart work” and build a “good company” for our
employees. In addition, as an educational program that encourages
people to change and grow, we will operate our “Future College” asan in-house university, expand our real campus where employees
can practice their skills, and develop a digital learning environmentthat lets them learn anywhere in Japan. In order to create a group ofhuman resources that can change society and change the future, wewill invest heavily in our people.

Accelerating Business Growth and Strengthening Profit
Structure
Change 2 refers to “Acceleration of Business Growth.” We will
designate the fields in which we aim to achieve business growth as“Future Domain,” and work on it by organically combining themanagement resources of the “Communications Infrastructure
Domain,” which is centered on the carrier business, and the“Corporate/Environmental and Social Domain,” which is centered on
the solutions business.
There are four key elements in the “Future Domain.” The first is toaccelerate city and village development projects and projects thatmeet corporate needs for DX and greening. We will respond to theneeds of each region and company by combining our technicalcapabilities in communications, IoT, ICT, electricity, energy, civilengineering, and other fields with our greatest strength, on-site
capabilities. The second is to make a foray into the green power
generation business that will contribute to the era of decarbonization.
In addition to the construction, operation and maintenance of power
generation facilities, we will become a power generation company
ourselves and supply renewable energy. The third is to strengthen

Pursuit of Human-Centered Management

With a focus on contributing to the resolution of social issues
in Japan and overseas, we will further enhance our corporate value
and achieve sustainable growth.
Unchanging Responsibilities and Continuous
Improvement
We, at the MIRAIT Group, have been engaged in the social
implementation of infrastructures throughout our history, including
before we became the current MIRAIT Group. Through engineering,
we support the development of people’s lives and industries, andonce a natural disaster such as a typhoon or earthquake strikes, we
do our best to maintain and restore the infrastructures. Our social
responsibilities of this kind remain unchanged today when
information and communication networks have evolved, and will doso even with further development in the future.
While fulfilling these responsibilities, we will utilize the latest
knowledge and technology and make every effort to improveourselves in order to meet the expectations of our customers andsociety. This principle is also in line with Matsuo Basho’s words weoften refer to: Fuekiryuko, which expresses the idea of immutability.

27 billion yen (operating income ratio of 6%), and ROE of more than
8.0%. To achieve these targets, we set up three pillars:“strengthening of the profit structure of existing businesses,”“strengthening of the growth potential of business in new fields,” and“strengthening of the management base.”
In FY 2020, we minimized the impact of the spread of the newcoronavirus infection on the progress of construction and new orders
by introducing new workstyles. We achieved all of our targets one
year ahead of schedule, thanks to the concerted efforts of ouremployees to implement the three pillars as well as government
measures (introduction of ICT in schools and depopulated areas) thatprovided a tailwind. To return these positive results to ourshareholders, we increased the annual dividend (by 5 yen, to 45 yen
per share) and bought back our own shares (6 million shares in total)
during the fiscal year.
In the current fiscal year, we are working to establish thisachievement as our “true strength,” as well as to further strengthenshareholder returns.

Achieving Targets Early and Establishing “True Strength”*Revised upward based on financial results for the first half of FY 2021

Under the new business strategy, we will promote five businessreforms, namely “5 Changes.”
The first of these changes is expressed as “Human-CenteredManagement.” With engineering as its main business, the MIRAITGroup is a company built on the daily on-site work of its employees
and collaborators. The business growth of the MIRAIT Group will be
realized through the change and growth of each individual in chargeof the site. First, as a foundation to ensure that such processes areworking actively, we are promoting “Safety-oriented Management”
and “Health-oriented Management” that create a workplaceenvironment where employees can work with peace of mind. Then,we will promote workstyle reforms to realize the MIRAIT Group’s

Material social issues (materialities) to be addressed

E nvironment

S ocialG overnance

Change 1
Human-Centered Management

Change 2
Acceleration of Business Growth

5 Business Reforms (5 Changes)

Change 3
Top-Class Profitability

Change 4
Data Insight Management

Business Strategy Towards 2030
In our fourth Medium-term Management Plan for the three-year
period starting in FY 2019, we, the MIRAIT Group, set targets for the
final year (FY 2021): net sales of 450 billion yen, operating income of

03

Change 5
In November 2021, the MIRAIT Group announced the outline of its
business strategy for the next stage. The business strategy wasStrengthening of ESG Management Foundation

MIRAIT Group
Integrated report 2021

04

Our BusinessAcceleration of Business Growth
Until now

Investing resources in the “Future Domain”

Building and Maintaining

Future Domain
Base Domain

Frontier Domain

NTT Operations

ICT

Multicarrier

Environmental andSocial Innovation

Shift to a full value chain model
Accelerating projects of “city and village development/
corporate DX and GX (green transformation)”Entering the green power generation business
Making software business a strategic subsidiary

Starting with telecommunications infrastructure, we build
a broad range of systems offering greater convenience indaily life and society as a whole and ensuring greater
safety and security (comprehensive engineering:
configuration), and maintain them (servicing:
maintenance and operation) both in Japan and overseas.

Expanding global businessMix of existing andnew fields of business

Bringing together resources

Communications Infrastructure
Domainour software business that supports customers’ DX andinfrastructure virtualization by making it a strategic subsidiary. Amid
the growing use of software as part of the foundation for all
infrastructure, the MIRAIT Group will integrate and strengthen its
software business. Lastly, the fourth is to strengthen our global
business catering to the demand for sharing data centers andinfrastructures around the world. With our experience in Japan as afoundation, we will build high-quality infrastructures to contribute to
the development of other countries.
In promoting the Future Domain, we will shift our business fromthe conventional construction-centered model to a full value chain
model that encompasses all processes from planning and design toconstruction and operation.
Change 3 represents “Top-Class Profitability.” We aim tostrengthen our profit structure and reach the highest level of profitability
in the industry by achieving efficient use of management resources
through the three-way merger and the collaboration between the fivecompanies, i.e., the new company resulting from the merger, TTK
Co.,Ltd., SOLCOM Co.,Ltd., Shikokutsuken Co.,Ltd., and Lantrovision(S) Ltd., as well as by thoroughly promoting the efficiency of operations
partly through DX.

The Possibilities of Data
Change 4 is “Data Insight Management.” Engineering and data are
now inseparable. By extracting and leveraging insights from data, weare opening up many new possibilities.
A prime example of this is digital twins in design and construction.
In the past, the construction of communication base stations required
frequent trips to the roof of the building, each time requiring
permission from the building owner. However, using digital twins with
3D mapping technology can dramatically streamline the work by
reducing the number of times you need to visit the site. This method is
also valid for underground water pipes and telephone cables.
The power of data is astonishing in the operation andmaintenance as well. Steel towers installed over a wide geographicalarea are exposed to the elements, and gradually become rusty anddamaged, but this is not easy to check. Utilizing the data collected by

05

Corporate/Environmental andSocial Infrastructure Domain

drones and other devices will greatly improve the efficiency ofmaintenance. AI-based diagnosis and prediction of water pipe
deterioration is also promising.
I often encourage my employees to “improve safety scientifically.”
For example, we have installed drive recorders in all of our vehicles,
analyzed the driving data and shared it with our field staff, which hassignificantly reduced the number of accidents. Data can also be very
useful in preventing heatstroke and accidents at construction sites.

Building an Organizational Foundation for ESG
Management
Lastly, Change 5 is “Strengthening of ESG Management
Foundation.” On September 1, 2021, MIRAIT Holdings establishedthe ESG Management Promotion Committee. It is placed directly
under the Executive Committee, chaired by me and joined by officers
and presidents of Group companies. The committee meets regularly
to discuss material social issues that the MIRAIT Group should
address, as well as Group-wide ESG strategies and policies,
ESG-related initiatives, and information disclosure.
In October, we also endorsed the Task Force on Climate-related
Financial Disclosures (TCFD). In addition to participating in the global
movement toward carbon neutrality, we will identify and disclose thefinancial impact of climate change risks and opportunities.

FY 2020 MIRAIT Group Sales

463.7

bil. yen

NTT Operations

Multicarrier

Environmental and Social Innovation

ICT Solutions

157.0bil. yen

98.2bil. yen

58.1bil. yen

150.3bil. yen

34%

21%

13%

32%

The MIRAIT Group builds,
maintains and operates the NTT
Group’s fixed-line communication
facilities and provides support tomake optical fiber networks evenmore prevalent. Although initially
focused on building thosefacilities, in recent years we have
expanded into facility
maintenance and operation as
well. When disaster strikes, ouremergency repairs andreconstruction safeguard thesecommunication networks.

The MIRAIT Group builds,
maintains and operates mobile
communications facilities tosupport the increasing speed andcapacity of mobile networks. We
are currently conducting
constructions for the expansion of
5G service area.
Our Group also builds andmaintains fixed-line
communications facilities forcommunication carriers, conducts
CATV, and builds and maintains
fixed-line and mobile
communications facilities
overseas (Australia, Philippines,
and Sri Lanka).

The MIRAIT Group builds,
maintains and operates solar
power generation systems, EV
charging stations and storage
battery systems to make newenergy infrastructures moreaccessible.
In addition, we will contribute to
the construction of
next-generation environmental
and social infrastructures throughthe elimination of utility poles(undergrounding of electric wires),electrical and air conditioning
work, including LED installation,water and sewage work as wellas road infrastructure work, suchas bridge construction.

With our ICT technology, we
provide high-quality solutions that
respond to a wide range of social
and business issues, including
introducing LAN/PBX and Wi-Fi,
ensuring security, building
management advancement, andpromotion of operational
efficiency. We have begun
building and operating data
centers and using drones tofurther expand the breadth ofthese solutions.

Moving forward by uniting the power of Group officers
and employees
In order to keep us all in step towards the year 2030, this fall we
conducted a survey of all 14,000 officers and employees of the
MIRAIT Group. Our shift to a business strategy focused on resolvingsocial issues reflects the thoughts shared by many of us. We are also
working on redefining our Purpose and Mission based on the resultsof this survey. We are determined to make a dynamic progress byuniting the power of employees in various positions who will drive the
new MIRAIT Group forward.
Your further expectations and cooperation to the MIRAIT Groupwill be greatly appreciated.

A Step Forward
As one of the themes for building the next social infrastructure, the
MIRAIT Group places great importance on water. Shikokutsuken Co.,
Ltd. is involved in the construction of distribution reservoirs in projects
to relocate and upgrade filtration plants. As well, SOLCOM Co.,Ltd.
has developed “nano gate,” a self-cleaning system for building watersupply and drainage pipes, which enables low-cost, low-labor
maintenance of water supply and drainage pipes and otherwater-related facilities.
MIRAIT Group
Integrated report 2021

06

Foundation of Our Business/Value Creation and Performance

The MIRAIT Group continuously enhances a wide range of non-financial capital supporting businesses
to heighten medium- to long-term financial performance.

MiratecDrone’s JUIDA-Certified

Engineering Capital

Human CapitalIntellectual Capital

Organizational CapitalSocial and Relationship Capital

Course Wins Top Prize,

We keep both the hardware andsoftware directly used for engineering ingood shape while regularly adopting thelatest versions.

The size and quality of human capital iscrucial in engineering. With thisrecognition in mind, the MIRAIT Group
works to cultivate its human capital that
supports the growth of business in
multifaceted ways.

The technical capabilities of the MIRAITGroup are a factor affecting its market
competitiveness that often remains
unseen. We place importance on turning
tacit knowledge into explicit knowledge,
sharing and developing it. We are also
expanding our new knowledge through
M&A, cooperation with various entities,
and joint research.

The business operation system of the
MIRAIT Group and partner companies isthe foundation for our business growth
in Japan and abroad.

The trusted relationships with our
stakeholders are an “unseen foundation”
of the MIRAIT Group’s businesses.

“JUIDA SCHOOL AWARDS 2021”

Major Capitals

Major Capitals• Construction equipment (aerial work platform
vehicles, etc.)• Network/cloud service infrastructure• Various tools used for solutions• Internal information systems• Engineers/skilled workers with a high level ofproblem-solving skills• Trusted worksite supervisors• Sales staff who nurture good relationships withcustomers

Development Initiatives

Development Initiatives• Systematic renewal of construction equipment• SD-WAN (software-defined networking)• Construction and operation of our own data
center• Configuration of networked DC*1
• Enhancement of core systems (fori-Construction)• Operational improvements through active
adoption of RPA*2• Systematic training through a personnel
training system• Bounty system for obtaining professional
qualifications• Support for career advancement through aninterview program• Personnel rotation that encourages experiencein diverse businesses and organizational
cultures• Securing and promoting active participation ofdiverse talents• Enhancement of engineering personnel(mid-career employment)*1 System to link with leased data centers through undergroundcables*2 Operational automation through robotics

Major Capitals• Telecommunications construction and otherengineering expertise• Knowledge in specialized relevant fields• Technical knowledge to be used in new
solutions• Processes and techniques of value engineering• Quality control, occupational safety and health,environmental conservation and other expertise
Development Initiatives

at the JUIDA SCHOOL AWARDS 2021
held by the Japan UAS Industrial
Development Association (JUIDA).
MIRAIT Technologies Corporation’ s

Major Capitals

Major Capitals• Presence in each region and country• Business sites (sales, construction, andservices)• Partner companies (smooth collaboration)• Networks with organizations and people
related to business• The brand based on confidence and trust from
customers• Long lasting relationships with
telecommunications carriers• Relationships with customers, other thantelecommunication carriers, in various fields• Collaboration with municipalities andgovernment agencies• Support from local communities

Drone Business Division, theDevelopment Initiatives

recognizes the best drone education• A long and proven track record• Clarification of quality standards as well as
confirmation and validation of quality in each
operation• Disaster recovery response• Local contribution efforts/activities to promote
communication with local communities

activities among schools that, in addition

Development Initiatives• Expansion and deepening of regional coverage• Strengthening of Group operation systems• Collaboration meetings and regional
cooperation meetings with business partners• ESG sourcing• Operation of various management systems• Strengthening of construction management
capabilities(Use and ongoing revisions of the Worksite
Supervisor Handbook)• KAIZEN Suggestion Activity (reforms anddevelopment of articles and methods via
suggested improvements)• Adoption of the latest technology• Open innovation

awarded the “JUIDA SCHOOL AWARDS
2019 Gold,” the highest recognition for“an accredited school that hascontributed to producing a large numberof personnel with safety-related
knowledge and high piloting skills.”
This year’ s “President’ s Award”

to implementing JUIDA-designatedcurriculums, conducted their own drone
education activities during the year from
April 2020 to March 2021 to improvestudents’ knowledge of drone-related
laws and rules, their piloting skills, andoperating drones safely.

Number of KAIZEN suggestions

Number of Group Companies

12,882

24,48957

Approx.

Personnel with qualifications

KAIZEN Fellows

Number of partner companies
with Ongoing Business

68

Over

Over

Sales Sites Lantrovision is Expanding
Throughout Asia

Number of Pilots Produced ThroughOur Drone School Which We Have Been
Running for Three Years

Approx.

predecessor of MiratecDrone, was once

their understanding of the importance of

Number of employees

9,350
17,650MiratecDrone Corp. won the
President’ s Award, the highest award,

Number of Users of Information andCommunication Facilities Supportedby the MIRAIT Group (Japan)

Approx.

“President’s Award,” atin Japan

28

Overseas

Countries and Regions

millionTrack Record of Building Communications
Facilities Worldwide by the MIRAIT Group

1,000

13

41

100

28

CitiesCountries

1,000

Approx.

Number of Sites Using “Casting Table 3.0”
Contact Center Solutions

83

Sites of308

Companies

EV Charging Stations

1,600

Approx.

Stations

Cumulative total of ee-TaB*® Hotel RoomInformation Service Terminals Introduced at Hotels

1,000

Over

Terminals at

69

Facilities

The data is for FY 2020 (as of March 31, 2021)

07

MIRAIT Group
Integrated report 2021

08

Unfolding the Medium-term Management Plan

Based on rapid changes in the business environment, the MIRAIT Group is implementing a three-year medium-term
management plan that began in fiscal 2019 to bring about sustainable growth.

Outline of Current Medium-term Management Plan
The business environment surrounding us at the MIRAIT Group is
expected to continue to change significantly in the future due to
expectations for the expansion of 5G-related services, growing
needs for new ICT solutions created under the “new lifestyle”
promoted by the spread of the new coronavirus infection, and thepromotion of renewable energy policies to realize a decarbonizedsociety. We believe that we must strive to improve management
efficiency and productivity of existing businesses, while expanding
into and strengthening the competitiveness in new fields (“frontierbusiness”) in the medium- to long-term, in order to enhance ourcorporate value and to achieve sustainable growth as a“Comprehensive Engineering and Service Company” amid suchchanges in the external environment. To this end, we haveformulated our fourth Medium-term Management Plan for thethree-year period starting from FY 2019.

Business Activities and Results in FY 2020
In FY 2020, the spread of the new coronavirus infection caused
delays in the progress of some construction projects and also
affected the volume of new orders obtained by the Group. The
Group continued its business activities while taking measures toprevent the spread of the infection in cooperation with customers,
including telecommunications companies. The Group also
introduced new way styles, such as staggered work hours,
teleworking, and office decentralization, and worked to improvethe efficiency of business operations.
The status of each business segment is as follows:■ NTT BusinessIn the NTT business, the Group worked to increase accessconstruction work related to the increase in facility operation workand the expansion of teleworking, and to win orders for the
Project to Promote the Development of an Advanced WirelessEnvironment, as well as to improve profit margins through thebenchmarking method and to streamline operations by integrating
offices.
■ Multicarrier BusinessIn the multicarrier business, the Group achieved higher sales thanthe previous year thanks to the nationwide expansion of
construction work for Rakuten Mobile and an increase in CATV
work, although delays in the delivery of parts and materials andrestrictions on entry caused some construction work to slip
behind schedule. The Group also worked to strengthen technicalcapabilities and its human resource base by training multi-skilled
engineers who are capable of performing construction andmaintenance of wireless base stations and fixed lines in a
combined manner.
■ Environmental and Social Innovation BusinessAlthough there was an increase in air-conditioning work andexpansion of water supply and sewerage work, sales in theenvironmental and social innovation business fell below theprevious year’s level due to a decrease in large-scale solar power
projects and electrical work.
As a future growth driver, the Group also worked on theconstruction of smart communities that use EV chargers, storage
batteries, and self-consumption solar power generation.

Key Initiatives of the Fourth Medium-term Management Plan
1. Generate new business opportunities

2. Acceleration of transformation ofbusiness structure• Acceleration of transformation from carrier business to solution business• Promotion of transformation of quality in solution business (emphasis on profit)

3. Enhance productivity and reduce costs
through efficient operations• Ensuring operation of construction work through stronger ties with partner companies• Sharing of systems and consolidation of common operations

4. Strengthen human resources• Improvement of productivity and securing of human resources through work style reforms• Strengthening and utilization of human resources supporting expansion into new business domains andtransformation of business5. Promote ESG-oriented management andimprovement of safety and quality

6. Capital policy

09• Development of solution business by leveraging the expanded regional coverage achieved through management
integration• Facing the challenge of new business opportunities transcending the conventional framework of businessdomains and technologies• Accurately perceiving business in terms of both risk and opportunity from the perspective of strengthening ESG• Establishment of the MIRAIT Group brand responding to customers’ needs for peace of mind and reliability
in “improvement of safety and quality”• Maintaining a sound financial standing• Management conscious of capital cost
• Consideration of providing shareholder returns aimed at realization of ROE of 8% or more

In order to strengthen our cost competitiveness in water andsewage works and civil engineering works, the Group has decided
to merge Tokaikoei Inc. and Miyakokensetsu Corporation(effective April 1, 2021).
■ ICT Solution BusinessIn the ICT solution business, sales exceeded the previous year’s
results by nearly 30 billion yen thanks to an increase in LAN/PBX-related domestic business and increased sales of goods forschools (PCs, servers, etc.).
The Group also worked to strengthen its technical capabilities
by launching digital transformation (DX)-related services such as
an “electronic shelf label” system and participating in verification
tests for the practical application of new technologies.
In addition, with the aim of expanding the global business overthe medium to long term, the Group added YL Integrated Pte Ltd.,
which is engaged in electrical construction in Singapore, and twoof its subsidiaries as well as Shanghai Changling Communication
Equipment Co.,Ltd., which constructs communication towers andprovides sharing services mainly in China (Shanghai) as
consolidated subsidiaries of the Group.

Activities in FY 2021
The actual results for FY 2020 exceeded the target for FY 2021,
and we consider these good results to indicate our “truestrength,” so we have revised our targets.
In FY 2021, we are giving priority to the following challenges:
1. Expanding business domains in new fields (frontier business)
Accelerating the transformation of the business structure bystrengthening inter-group collaboration, etc.
Carefully selecting targets in response to changes in the market
environment
Strengthening the management base by improving operating
efficiency
2. Improving productivity of existing businesses
Continuously improving business efficiency through thebenchmarking method, and maximizing integration synergies
Promoting multi-skilling across different businesses to improve
operational efficiency
Strengthening of profit structure through various measures
including business process review

As for the consolidated financial results, net sales increased by
22.6 billion yen year-on-year to 463.7 billion yen and operating
income increased by 8.2 billion yen year-on-year to 30.1 billion
yen, marking the fifth consecutive year of increased sales andprofits, and a new record high. As well, ROE was 11.0%.
*The impact of the spread of the new coronavirus (COVID-19) epidemic has been judged to be
insignificant, as there have been no events that could have a significant impact on the Group’sbusiness performance and other conditions.

Targets and Results (Group Consolidated)
FY 2021 Targets

MIRAIT Group Key Performance
Indicators(Medium-term Management Plan)FY 2020 Results

FY 2021 Planned Figures

Net sales

450 bil. yen

463.7 bil. yen

480.0 bil. yen

The Group uses sales, operating

Operating income

27.0 bil. yen

30.1 bil. yen

32.0 bil. yen

income, operating income ratio, andMore than 8.0%

11.0%

-

ROE

ROE (return on equity) as objective
indicators (KPI) for determining thestatus of management goals. We
recognize that these indicators will be
useful for all stakeholders, including

Results by Segment

shareholders, to evaluate the
FY 2020 (YoY Change)

effectiveness, feasibility, progress, etc.
of the Group’ s management policies

NTT Operations

157.0 bil. yen (+0.7 bil. yen)and strategies. Operating income andMulticarrier

98.2 bil. yen (+1 bil. yen)

ROE are also used as calculation

Environmental and Social Innovation

58.1 bil. yen (-8.6 bil. yen)

ICT Solutions

150.3 bil. yen (+29.5 bil. yen)

indicators in the performance-linked
stock-based compensation plan.

MIRAIT Group
Integrated report 2021

10

Evolution of Our Business Structure Toward a New MIRAIT Group

The MIRAIT Group is reorganizing its business structure in order to continue to be a growing company
in the midst of rapid changes in the business environment.

Merger of Three Companies to Accelerate Business
Structure Transformation
In October 2020, the Group announced that its Board of Directors
had approved a policy to begin deliberations and preparations fora three-way merger between the holding company, MIRAIT
Holdings Corporation, and its two wholly-owned consolidated
subsidiaries (MIRAIT Corporation and MIRAIT Technologies
Corporation).
MIRAIT Corporation and MIRAIT Technologies Corporation,
the core operating companies of the Group, have expanded theirrespective businesses, mainly in the information andtelecommunications engineering business and the solution
business for telecommunications carriers, and have greatly
contributed to the enhancement of the Group’s corporate value.
However, due to the rapid changes in the business environment
facing the Group, in order to achieve further corporate growth in
the future, it is urgent to change the business structure, i.e., tomake growth fields (solutions business, new fields, etc.) into corebusinesses, and at the same time, to strengthen the profit
structure of the information and telecommunications engineeringbusiness (carrier business) that we have been developing, and to
reinforce the management foundation.
In light of these circumstances, by accelerating thetransformation of our business structure through this merger, we
aim to remain a reliable group that builds and maintains the social

infrastructure (telecommunications and energy) of the future byfurther speeding up decision-making among the Group
companies, improving the efficiency of our management structure,
reducing costs through the concentration of management
resources, and further strengthening our profitability.
We aim to realize the merger early in FY 2022. We havealready reorganized our operations into teams according toindividual growth fields such as the solution field (April 2021), theglobal field (July 2021), and the frontier field (October 2021).

Outline of the Three-Way Merger
Method of merger
It is assumed that the merger will be an absorption-type merger,
with MIRAIT Holdings Corporation as the surviving company.
Issuance of new shares, etc.
(1) This is a merger between MIRAIT Holdings Corporation and its
two wholly-owned consolidated subsidiaries, MIRAIT Corporationand MIRAIT Technologies Corporation, and there will be no
issuance of new shares or delivery of monetary or otherconsideration.
Trade name and business description
As for the trade name and business activities of the company
resulting from this merger, the articles of incorporation will beamended and a resolution will be adopted at the general meetingof shareholders.

Purpose of the Reorganization and Merger of the Three Companies

Development of Solutions

Strengthening of theand Other New Fields

Profit Structure of Existing

Into Core Businesses

Carrier Businesses

Transformation ofBusiness Structure

Steps in the Reorganization and Merger

2022: Three-Way Mergerof the Three Companies

Newly Integrated Company
2021: Creation of Teams
MIRAIT Holdings Corporation

MIRAIT Corporation

MIRAIT Technologies Corporation

Solution Field/Global Field/Frontier Field

Present

2020
MIRAIT Holdings Corporation

MIRAIT Corporation

MIRAIT Technologies Corporation

Reorganization of MIRAIT Corporation Group
Companies
The Board of Directors of MIRAIT Corporation resolved to startdeliberations and preparations for the reorganization of its groupcompanies at a meeting held in January 2021.
The purpose of the reorganization is fourfold: (1) to improve
efficiency and clarify missions by integrating and consolidating alarge number of small group companies into a few corecompanies by business field; (2) to improve efficiency byconsolidating inefficient overhead functions dispersed among thecompanies; (3) to strengthen the recruitment and brand power of
each company; and (4) to strengthen the governance of the Group
companies of MIRAIT Holdings Corporation.

We have been working toward implementation in early FY
2021, and have first started to reorganize the mobile business.
We have consolidated the mobile business-related operations
that MIRAIT Corporation orders from its group companies into twogroup companies, one in the East Japan area and the other in theWest Japan area. In addition, some of the operations conductedby MIRAIT Corporation were also transferred to the same twocompanies. Then, these two companies have changed their trade
names as of July 1, 2021, in order to clarify their positionings ascompanies that conduct mobile business-related operations.
Nissin Tsuukou Co.,Ltd. is now called “MIRAIT Mobile East
Co.,ltd." and DAIMEI NETWORK CO.,LTD. “MIRAIT Mobile WestCo.,ltd.”

Overview of the Reorganization
Business

Details of the reorganization

Companies concerned

Mobile business

Consolidation of mobile-related operations into two core companies
in the east and west

Nissin Tsuukou Co.,ltd., DAIMEI NETWORK CO.,LTD.

Solution business

Integration of two subsidiaries related to ICT/environment and energy

MIRAIT-X Corporation, KOKKO SYSTEMS CO., LTD.

Outsourcing business

Integration of two subsidiaries to which common operations are outsourced

HOPE NET Co., Ltd., NIPPON TOYOCOM Co.,Ltd

Living with COVIDCOVID-19

Strengthening of theManagement BaseGroup Management
BrandsHuman Resources
Information Systems
Safety and Quality

11

MIRAIT Group
Integrated report 2021

12

Promote ESG-oriented Management

MIRAIT Group’s ESG-oriented Management
in field and technical capabilities that we have cultivatedover the years, and we feel that we are expected toresolve issues of our customers, society, and theenvironment through the MIRAIT Group’s business.
With growing expectations for contributing to the
SDGs and resolving ESG-related issues, we will strive tocontribute to the sustainable development of ourcustomers and society and enhance our corporate value
by promoting various measures.

In recent years, companies are expected to respond tosocial and environmental issues, as typified by the
Sustainable Development Goals (SDGs), and there is a
growing trend of evaluating corporate involvement insociety from an ESG (Environmental, Social andGovernance) perspective.
The MIRAIT Group is building communication andelectric infrastructure, including the development of 5G
facilities, the construction of EV stations, and conducting
renewable energy projects, by leveraging the strengths

ESG Management Promotion Structure
The MIRAIT Group has established amanagement system to promote
ESG-oriented management with the aimof contributing to the SDGs andenhancing corporate value for sustainablegrowth.
The ESG Management Promotion
Committee, chaired by the President, willbe established to formulate strategies andresolve issues related to overall ESG
management in the MIRAIT Group.

ESG Management Promotion Committee Members
Chair

President and Chief Executive Officer of MIRAIT Holdings NAKAYAMA Toshiki

Committee Members

Directors
YAMAMOTO Yasuhiro, TOTAKE Yasushi, TSUKAMOTO Masakazu, AOYAMA Koji,
HIRABARA Toshiyuki, IGARASHI Katsuhiko
Operating Companies
AKAHASHI Masayuki, ITO Fuminori, MIYAZAKI Tatsumi, SASAKI Takao,
TAKEDA Yoshibumi, TSURUMI Yasuo, TAKAGI Yasuhiro, OCHI Yasuyuki,
MINOWA Yoshiro, KAJI Akio, NAGAMATSU Noriyuki, TAKAYA Yoichiro

Secretariat

Election/Dismissal

Materiality Identification Process
We, at the MIRAIT Group, had previously
identified material issues (materialities)
when formulating the third Medium-termManagement Plan in May 2017, but inlight of recent changes in society and theenvironment, we have identified nine newmaterialities.
To identify and decide on theseissues, the ESG Management Promotion
Committee held a series of discussions
based on customer and employee
surveys, opinions from stakeholders,
important social issues extracted frominternational guidelines on social
responsibility, and expectations of the
MIRAIT Group, followed by deliberations
by the Executive Committee and Board of
Directors.

■STEP1 Extraction and categorization of social issues
Comprehensively extract issues to be considered by referring to the GRI Standards, ISO 26000, andother major international guidelines on the social responsibility of organizations, as well as the SDGs andevaluation items of ESG evaluation organizations.
■STEP2 Prioritization
Evaluate and prioritize the extracted issues in terms of whether we should contribute to solving them, orwhether they will lead to value creation, based on stakeholders’ expectations and the raison d’etre andmissions of the MIRAIT Group.
Discuss and select material issues that the MIRAIT Group should address on a priority basis at the
ESG Management Promotion Committee.
■STEP3 Validation and identification
Confirm the appropriateness of the selected material issues in terms of their alignment with the MIRAITGroup’s management issues. Discuss the risks to the current business and future opportunities at the
ESG Management Promotion Committee, and after deliberations by the Executive Committee and
Board of Directors, identify material issues (materialities).
Consult with relevant departments to determine measures and targets for the identified materialities.
■STEP4 Review
Evaluate activities against materialities based on targets and results, and disclose the evaluation resultsin the Integrated Report.
Do a review based on questionnaires conducted inside and outside the MIRAIT Group, opinions
received from external experts, international goals and guidelines such as the SDGs, and evaluations by
ESG evaluation organizations. Use the results to revise materialities and goals and improve the content

ESG Management Promotion Office, Strategy Department, MIRAIT Holdings
Managing Executive Officers in Charge of PR
Managing Executive Officers in Charge of IR

of disclosure as well as incorporate them into business operations.

General Meetings of Shareholders

Extraction and categorization of social issues
Election/Dismissal

Election/Dismissal

Extract issues based on the GRI Standards, ISO 26000, and other major international guidelines on the social
responsibility of organizations, as well as the SDGs and evaluation items of ESG evaluation organizations.

MIRAIT Holdings
STEP

Audit

Board of Corporate Auditors

Consultation/Reporting

Collaboration

Nomination andCompensation Committee

Collaboration

1

Board of Directors

Instruction

Prioritization

Supervision

President and CEO

Internal inspection section

Evaluate and prioritize the extracted issues in terms of stakeholders’ expectations
and the MIRAIT Group’s contribution to society.

Reporting

STEP

2(Group Presidents’ Council/Executive Committee)

Investigation

Accounting Auditor

Reporting

Validation and identification
Confirm the appropriateness of the material issues in terms of their alignment
with the MIRAIT Group’s management issues.

Audit- Strategy Department- Finance and Accounting Department- Corporate Affairs Department- M’s Brain Center, etc.

Audit

Compliance Exective Committee
Reporting

Risk Management Exective Committee

Instruction

ESG Management Exective Committee

STEP

3

Discuss risks to the business and opportunities for future value creation at the Committee,
and identify the material issues through deliberations at meetings of the Board of Directors, etc.

Review
Perform activity evaluation and disclose the results in the Integrated Report.

Audit/Reporting

Business
Management
MIRAIT Group Companies

13

Review based on external experts, international goals and guidelines, evaluations
by evaluation organizations, etc.

Consultation/Reporting

STEP

4

Use the results to revise materialities and goals and improve the content of
disclosure as well as incorporate them into business operations.

MIRAIT Group
Integrated report 2021

14

Promote ESG-oriented Management

Endorsement of the TCFD

Materiality Review
Material issues (materialities)● Building and Maintaining an Environmentally-Friendly Society

Importance to society/stakeholders

E・Realization of a decarbonized society through business activities
・Contribution to the creation of environmentally-friendly and resilient cities and villages● Building and Maintaining a Safe, Secure, and Prosperous Society

・Safety and quality improvement

S

We consider climate change as one of the issues that is highly
relevant to the MIRAIT Group’s business activities.
In October 2021, the MIRAIT Group endorsed therecommendations of the Task Force on Climate-related Financial
Disclosures (TCFD)*, which aims to proactively disclose thefinancial impact of climate-related “risks” and “opportunities.” In
addition to incorporating the risks and opportunities that climatechange presents to the MIRAIT Group’s business into ourbusiness strategies, we will disclose appropriate non-financial
indicators, work toward decarbonization, and through ourbusiness aim to contribute to society as a whole, including
addressing overall environmental issues.
Also, we have joined the “TCFD Consortium.”*The Task Force on Climate-related Financial Disclosures (TCFD) was established to formulate

TCFD Consortium

recommendations for more effective climate-related disclosures that will facilitate more informed

The TCFD Consortium is an organization established as a forum for companies, financial institutions,decision making on investments, credit, and insurance underwriting and help stakeholders betteretc. that endorse the TCFD to work together to discuss effective information disclosure by companies

understand the concentration of carbon-related assets in finance.

and initiatives to help financial institutions make appropriate investment decisions based on disclosed

The recommended disclosure items are structured around four thematic areas that represent core

information.

・Co-creation of social value through collaboration with partners● Building and Maintaining a Culture Where People Respect Diverse Human Resources and Learn from Each Other

・Promotion of human resource development, workstyle reform, and health-oriented management・Respect for human rights and promotion of diversity and inclusion

G● Building and Maintaining a Fair and Transparent Corporate Group・Enhancing corporate governance ・Thorough compliance ・Thorough risk management●Social issue group ●E ●S ●Gelements of how organizations operate: governance, strategy, risk management, and metrics andImportance to the MIRAIT Group’s businesstargets.

Operation of Integrated Management System

Relationship Between Materialities and SDGs
As shown in the diagram below, the MIRAIT Group has organized its
material issues (materialities) and the impact on the SDGs throughthe promotion of initiatives linked to these issues. We will contributeto the realization of each goal through our business activities.

SDGs
Material issues (materialities)

The MIRAIT Group has acquired and is operating in compliance withinternational standards in four areas: quality management systems(ISO 9001), occupational health and safety management systems(ISO 45001), environmental management systems (ISO 14001), andinformation security management systems (ISMS) (ISO/IEC 27001).
Since 2012, we have been operating the Integrated
Management System that deals with the management systems ofinternational standards in the four areas in an integrated manner.
The Management System Policy we operate provides thebasis of the Integrated Management System, requires all people
involved in MIRAIT Group business activities to be aware of ESG,
and clearly states that each company and department of the
MIRAIT Group cooperate together to conduct PDCA
management.

Building and Maintaining an Environmentally-Friendly Society

ERealization of a decarbonized society through business activities
Contribution to the creation of environmentally-friendly
and resilient cities and villages

Quality
ISO 9001

Building and Maintaining a Safe, Secure, and Prosperous Society
Safety and quality improvement
Co-creation of social value through collaboration with partners

S
Building and Maintaining a Culture Where People Respect Diverse Human Resources and Learn from Each Other
Promotion of human resource development, workstyle reform,and health-oriented management
Respect for human rights and promotion of diversity and inclusion

Information security
ISO/IEC 27001

Integrated
Management
SystemOccupational health and safety
ISO 45001

Building and Maintaining a Fair and Transparent Corporate GroupG

Enhancing corporate governanceThorough compliance

Environment
ISO 14001

Thorough risk management

15

MIRAIT Group
Integrated report 2021

16

ESG

Environment

Building and Maintaining
an Environmentally-Friendly Society

Realization of a decarbonized society
through business activities
We aim to realize a decarbonized society by constructing, operating, and maintaining more efficient social infrastructures
and advanced energy-related systems, as well as supplying renewable energy as our own business.

Businesses to Serve Environmental Protection

Environmental Management

Direct and Indirect Contributions
We contribute directly to creating energy infrastructure needed for a
low-carbon society through design, construction, operation andmaintenance of power generators that utilize renewable energy(especially solar power), installation and maintenance of LED lighting,installation and maintenance of EV charging stations, and provision ofenergy management systems and battery systems.
We are also taking an active part in initiatives toward realizing
high-efficiency smart energy systems and smart cities, by suchapproaches as developing broadband wireless sensor network
systems and next-generation mobility.

Companies in the MIRAIT Group operate in compliance withenvironmental management system standards (ISO 14001) (MIRAIT
Corporation and MIRAIT Technologies Corporation are certified at allof their business locations).
At each business location, environmental aspects of ouroperations are identified and impacts are assessed. We then design
steps to manage material environmental aspects, formulate actionplans for each fiscal year, review progress to find the results andchallenges, informing continuous improvement.
We conduct regular audits. One internal and one external audit
are held once a year at our business base with ISO 14001
certification.
Over the seven years from 2014 to 2020, the number of ourviolation of environmental laws, accidents or pollution that would
cause environmental problems, and environmental complaints were
all zero (at the domestic group companies).

Stable Supply of Renewable Energy
One of the social infrastructures that the MIRAIT Group is building
is equipment and systems for widely spreading renewable energy.
Local governments have been implementing projects to support
the joint purchase of solar power and storage battery systems since
fiscal 2019 in order to further expand the use of renewable energy in
general households. In Kyoto City, which aims to achieve net zeroCO2 emissions by 2050, our group company COTONETENGINEERING Co., Ltd. has been selected as the sales andinstallation company to provide solar power and storage battery
systems to the city’s residents. Also in Osaka Prefecture, MIRAITTechnologies Corporation has been selected as a sales andinstallation company for storage battery systems. As well, MIRAIT
Corporation, together with ENNET Corporation and CCD Co., Ltd.,
conducted a verification test for the interchange of surplus electric
power to users in the local community by utilizing solar power
generation and electric vehicles (EV) over a one-year period startingat the end of March 2020.
We installed solar power generation equipment and an EV
power conditioner at a conventional energy-saving residence in
Karuizawa-machi, Kitasaku-gun, Nagano. Electricity from solar
power generation was used at home, and the surplus was
charged in EVs, which then supplied electricity to the docomo
Shop Karuizawa during designated evening hours.
We will also contribute to ensuring the stable supply of
renewable energy, a challenge to be addressed, so that it can bereadily used in more situations.

Improving Fuel-efficiency of Vehicles
We work to raise company-wide awareness and energy efficiency byintroducing low-emission, fuel-efficient vehicles, and by encouraging
eco-driving for less environmental impacts and fewer traffic
accidents.

Company car with an Eco-Drive Sticker

Comprehensive Environmental Protection Measures
Green Development Guidelines
Since FY 2016, the MIRAIT Group has established Green ProductDevelopment Guidelines compiling the points that should beconsidered from the product design and development stage with thepreservation of the global environment in mind. During development,
while both observing related laws and ordinances, we also consider
environmental effects over the life cycle of the construction method,
product, or service.
Environmental Standards for Evaluating and Selecting Business
Partners
In evaluating and selecting business partners, the MIRAIT Groupconsiders their approaches to ESG. We ask about environmental
considerations (promotion systems, chemical substancemanagement, CO2 emission reduction, and industrial waste
reduction) as a basis for our decision (see p. 35).

Contributing to Circular Society
Sharing Results
We aggregate actual values of our main performance indicators forenvironmental protection activities (CO2 emission, electricity
consumption, consumption of fuels such as gasoline and kerosene,
emission of paper waste, household waste and industrial waste, andgreen purchasing payments) and monitor and analyze them topromote our activities.
In summer and winter when electricity consumption increases,
each workplace sets its own targets and works to reduce electricity
use.

Recycling of Construction By-products
We continuously work to minimize the volume of construction
by-products that occur at each construction site and to discoverways to recycle by-products that do occur. As part of that effort, we
switched from wooden drums on which steel stranded wire is wound
and disposed of after one use to a reusable ECO drum – part of atelecommunications construction industry program – starting in 2008
and, except for a few sizes, use only ECO drums.

Saving and Creating Energy at Construction Centers
At local construction centers, we have been installing LED lighting,demand monitoring systems for power consumption, and rooftop
solar power generators, promoting energy conservation.
ECO drums

Annual electrical power output of solar power generators
at 5 offices of MIRAIT Corporation(thousand kWh)FY 2017

FY 2018

FY 2019

FY 2020

124

138

132

137

Green Purchasing
We purchase office supplies and paper based on therecommendations of GPN* green purchasing guidelines as much aspracticable. The green purchasing ratios for MIRAIT Corporation and
MIRAIT Technologies Corporation were 82.9% and 81.1%
respectively in FY 2020.
*A list of items (per product category) to consider from environmental viewpoints upon making
purchasing decisions, prepared by the GPN (Green Purchasing Network).

Biodiversity Conservation

Mitigating Climate Change

Promoting Power Saving
Most of the energy consumed in offices is electricity. The MIRAITGroup is making unified efforts to promote power saving throughmultifaceted approaches: more efficient use and reduction of printers17

and copy machines; power-saving settings of PCs; proper indoor
temperature control; switching off unnecessary lighting; andeducation for controlling elevator use.

Rural Area and Neighborhood (Satoyama) Conservation Activities
Since 2003, we have participated in satoyama conservation activities
organized by the Osaka Green Trust, recruiting volunteers bothinternally and from partner companies. In FY 2019, we joined pruning
and thinning in the Kurumatsukuri Forest of Ibaraki City inmetropolitan Osaka as in the previous year to restore and maintain its
favorable conditions. We worked to conserve nature and biodiversity
and create green and pleasant environments.

Promoting Recycling Construction Spent Products
We promote recycling by collecting uniforms and helmets after they
have been used and using a thermal processing (used as heat) bycontracting a specialized company.
Reducing Paper Use
We are promoting paperless meetings and standardizing proceduresfor using multifunction devices that eliminate wastefulness.
Work in the Kurumatsukuri Forest

MIRAIT Group
Integrated report 2021

18

ESG

Environment

Building and Maintaining
an Environmentally-Friendly Society

Contribution to the creation of environmentally-friendly
and resilient cities and villages
We will contribute to the creation of sustainable cities and villages through the construction of environmentally-friendly andresilient social infrastructure that makes full use of the MIRAIT Group’s technologies in a wide range of areas, including IoT,
5G, ICT, and energy systems.

Minimizing the Impact of Disasters and Accidents
Recovery response in the event of a disaster or accident is an
important role of the MIRAIT Group as a safeguard for thecommunications and network environment.
We conducted recovery activities for communication
infrastructures in various regions damaged by Typhoon No. 10 in July
2020 and Typhoons No. 15 and No. 19 in September and October
2019.

Creating Information and Communication
Infrastructures That Can Withstand Natural Disasters
The proper functioning of information and communication networks
is essential for the daily lives of the people and for industrial andeconomic activities. The MIRAIT Group has consistently beencommitted to the construction and operation of information andcommunication infrastructures that can withstand natural disasters,
including wind, flood, and earthquakes.
In recent years, we have also worked to prevent the collapse ofutility poles due to earthquakes and typhoons by undergrounding
electric cables. We excavate the road and bury conduits toaccommodate electric cables, while paying attention to water,
sewage, and gas pipes. The MIRAIT Corporation carried out aproject to eliminate utility poles in Ponto-cho, a representative scenic
area of Kyoto. Considering the narrow alley, the company used a
new construction method (small box method ) for the first time inJapan. This new method can be implemented at a lower cost and ina shorter period of time than conventional methods, and many local
governments, including the Tokyo Metropolitan Government, havevisited the site.
In the construction of a volcanic eruption monitoring system for
Mt. Zao, a quasi-national park located on the border of Miyagi andYamagata prefectures, TTK Co., Ltd. laid underground conduits toaccommodate the cables in accordance with the specifications of thecustomer, the Ministry of Land, Infrastructure, Transport and Tourism,
because the overhead communication and power cables supported
by utility poles could be cut in the event of a volcanic eruption. TTK

Before construction

faced a lot of difficulties due to considerations for tourists and suddenchanges in weather, typical to mountainous areas, but was able tocomplete the project with high quality and without any accidents. The
company is contributing to the construction of infrastructure for
mitigating disasters caused by volcanic eruptions.

Disaster Response Using Drone Technology
On July 1, 2020, we concluded an “Agreement on Cooperation for
Assistance Using Unmanned Aircraft in Times of Disaster” with Koto
Ward, Tokyo. Upon request from Koto Ward in the event of adisaster, MIRAIT Technologies Corporation and MiratecDrone Corp.
will be dispatched to inspect civil engineering facilities in the ward.
In addition, after the mudslide disaster that occurred in Atami
City, Shizuoka Prefecture in July 2021, MiratecDrone Corp. provided
technical guidance on drone photography to members of
TEC-FORCE, the Ministry of Land, Infrastructure, Transport andTourism. After the mudslide disaster, MiratecDrone createdorthoimages using burst shots taken by a drone from the headwatersof the Aizome River to the midstream erosion control dam, andprovided them to TEC-FORCE, the Ministry of Land, Infrastructure,
Transport and Tourism.
With MiratecDrone taking the lead, the MIRAIT Group will workon faster, more sophisticated and safer survey techniques.

Supporting a New Lifestyle in the “With Corona” Era
The pandemic of the new coronavirus has forced every company toadopt unprecedented practices in hygiene and personnel
management. The MIRAIT Group has been making efforts to deliver
solutions that enable the group to respond quickly and smoothly tothese social demands.
In April 2021, MiratecDrone Corp. began providing drone-based
antibacterial and antiviral coating services for large-scale event
venues. The purpose of this is to prevent the spread of the newcoronavirus through contact within the facilities. This reduces theworkload and cost, for example, by greatly reducing the daily
sterilization work. Needs are expected in large-scale event venues
such as theaters and halls. As a result of repeated verification tests
conducted with our partners, SUNCREST Co.,Ltd. and Toko Tekko
Co.,LTD., we confirmed monovalent copper compoundnanoparticles on the surface of test venues as a result of the sprayingof antibacterial and antiviral agents from drones. In addition, the
MIRAIT Corporation is supporting hotels that are struggling with the
new coronavirus disaster with its “ee-TaB*” tablets for hotel rooms,
providing a safer environment for guests. The ee-TaB* unifies theoperation of in-room equipment and, in cooperation with Toppan
Inc., enables gests to check how crowded a restaurant is from theirrooms. In addition to increasing the sense of security for guests, theee-TaB* also makes it easier for hotel managers to ensure safety
through enabling more efficient cleaning and disinfection work.
The “Conrepo (Condition Report)” developed by the MIRAIT
Corporation is a web system that facilitates management by enabling
the use of data on physical condition and work location that
employees enter with simple operations from a terminal at hand(smartphone or PC). Supervisors can check an employee’s physicalcondition and work location at any time by accessing “Conrepo” andviewing the data. Reports of physical disorders can also be
automatically sent to the direct supervisor. After three months ofpreliminary implementation within the company and receiving
extensive feedback, the MIRAIT Corporation launched this newservice in September 2020.

“Working Space in Nature” Enabled by Outdoor
Wi-Fi System
The MIRAIT Corporation’s Chiba Branch, which has been working on
proposals from the perspective of infectious disease prevention
measures, took overall charge of the consulting, design, andconstruction of the outdoor Wi-F (i wireless LAN) environment at the
Narita Yume Farm Family Auto Camping Ground (Narita City, Chiba
Prefecture), contributing to the realization of a “working space in nature.”
For the outdoor Wi-Fi relay device, the company selected a modelthat supports up to 1Gbps, which is equivalent to optical fiber, and forthe access point communicating with client terminals, a model that
supports high-speed communication, and confirmed a downstream
speed of over 100Mbps on weekdays when there are few users. The
environment enables stress-free exchange of large files and online
meetings. The company also handled the power source installation
work at the site. Named “Office Makiba,” this place provides anenvironment where people can work face-to-face while maintaining a
distance from each other in an open space.
Users can expect a sense of togetherness through shared space,
new ideas stimulated by unusual surroundings, and the healing effects
from being in nature. Through this, the company also aims to promote“workation,” which is attracting attention as a new way of working andliving.

After construction

Construction to eliminate utility poles in Ponto-cho

19

MIRAIT Group
Integrated report 2021

20

ESG

Environment

Building and Maintaining
an Environmentally-Friendly Society

Contribution to the creation of environmentally-friendly
and resilient cities and villages

Building and Using 5G
The MIRAIT Group is contributing to the smooth transition to the 5G
communications environment, and developing and providing
solutions that make the most of its features.
Supporting the Transition of Mobile Communication Systems to 5G
The provision of commercial services based on the 5th generation
mobile communications systems (5G) began in Japan in April 2020.
With its features of high speed, high capacity, low latency, andmultiple simultaneous connections, 5G is a core industrial and social
infrastructure for today’s wide use of IoT (technology that connects
all things to the Internet). Mobile communication systems have been
evolving around every 10 years since 1G started in 1979, and now,
10 years after the introduction of 4G, we are facing a major transition
period. And one of the questions to be addressed is how to makethe transition as smooth as possible.
Expectations are high for local 5G as a technology that allows local
governments and companies that want to use 5G to build their own 5G
communication environment locally according to their needs, but the
introduction of the technology is technically challenging. Since June
2021, the MIRAIT Group has been providing the “Local 5G All-in-One
Package,” a one-stop solution that provides comprehensive support forcompanies considering the introduction of local 5G, including

21

consulting, wireless area design, system design, equipment
procurement, proxy license application, installation work, and operationand maintenance. We are working on efficient and careful area
formation in a wide range of settings, including factories, construction
sites, distribution and warehouses, stadiums, hotels, and officebuildings.
In addition to the use of low-cost devices based on open-source
software models, we will leverage the know-how we have gained as
one of the first telecommunications construction companies to build a
local 5G area, and lower the hurdle to local 5G introduction by lowering
the cost.
There is a technical issue that it may be difficult for radio waves toreach behind objects, depending on the frequency of the radio waves.
Our group has collaborated with Metawave, a US company that solves
this problem by using special reflectors, and has established atechnology to build a wireless area efficiently, economically, and in an
unobtrusive manner. In November 2020, the MIRAIT Corporation
released “KLONE,” a reflector developed by Metawave.

Building and Operating Smart Cities
The MIRAIT Group is implementing the construction and operation ofsmart cities on a daily basis at various sites by examining a wide
range of technological possibilities and devising new ways of doing
things.
Promotion of Smart Social Infrastructure Management
Water utilities across the country are faced with the need to replacefacilities built during the period of rapid economic growth, especiallyaging pipelines, and make them more earthquake-resistant despite thedifficulties in securing water rate revenues due to the decline in water
demand. There are, however, other big challenges such as securing
engineers and passing on technology as well as improving productivity
and operational efficiency.
In order to overcome these challenges, MIRAIT Technologies
Corporation, together with Kurimoto, Ltd. and Photoruction, Inc., and incollaboration with the Kobe City Waterworks Bureau, conducted a
one-year joint research project from July 2019 to June 2020 on
streamlining and automating water pipe construction management
operations using knowledge of water infrastructure development and
ICT. The system developed as a result of this project, “photoruction
water,” is a construction management application that streamlines the
preparation of forms based on records of field operations in water pipe

construction. Since the work records entered in the field are linked to
the forms, the paperwork that used to be done at night after field workor on holidays can be eliminated, which greatly improves work
efficiency. MIRAIT Technologies Corporation began offering
photoruction water in late April 2021.
In addition, MIRAIT Technologies Corporation is also working on
predicting leakage from water pipe deterioration using AI technology.
The company has collaborated with Fracta (headquartered in California,
the US), which has strengths in AI technology in this area, andconducted a joint research project with Kumamoto City. From May
2020 to March 2021, the project team conducted a trial of a system toenable prediction of the risk of damage to water pipes in a short periodof time using an environmental database and algorithms based on pipe
data (pipe material type, pipe length, pipe diameter, water pressure,location information, etc.) and leakage history held by water utilities, andwas able to identify leakage points with a higher probability thanconventional aging models. This technology will enable optimization of
replacement plans and reduction of maintenance costs.

Proposing AI-Based Vermin Control Solutions

For Realizing Digital Twins

In September 2020, MIRAIT Corporation competed in the “AI Edge
Not activated with
Conference & Solution Contest” hosted by Oki Electric Industry Co.,
Surveillance camera
the presence ofLtd. and won first place.
a human
AE2100The MIRAIT Corporation’s proposal was a solution to prevent
vermin damage, which has been widely reported in recent years.
Verminassessment
Conventional systems that emit ultrasonic waves or light, controlled- Boarby timers or object detection sensors, have problems such as- Deer- Bearreducing their effectiveness as vermin become accustomed to- Monkey
them, and causing discomfort to people. To address this issue,
Ultrasonic speaker,- Crow
flashlight, etc.
- Dog/cat
MIRAIT Corporation has developed an “AI-adaptive” system thatutilizes image recognition AI to prevent vermin from becoming used
to the system through self-learning of effect patterns, and works only on the target vermin. The MIRAIT Corporation’s proposal was highly evaluated forthe wide range of applications of the technology and addressing the serious issue against the backdrop of increasing vermin damage in urban areas.
This contest is a competition to solve problems in six fields (transportation, construction/infrastructure, disaster prevention, finance/distribution,
manufacturing, and marine) using the AI edge computer announced by Oki Electric Industry Co., Ltd. as the first AI appliance in Japan, and 19
organizations including companies and universities participated.

The MIRAIT Corporation has launched a digital twin business that reproduces the real worldin cyber space based on spatial and location information of the real world, and has beenverifying 3D technology in various environments such as construction sites and leisurefacilities. Based on this experience and know-how, the company has developed a service
that allows users to acquire accurate 3D coordinates of various buildings and naturalenvironments as point cloud data. By reproducing structures on a computer using this point
cloud data, customers can view and measure them from any viewpoint, use them in various
simulations, and utilize them as the basis for a digital
twin. The service has been launched since late
February 2021.
In addition, the company is building a cloudservice that visualizes point cloud data in a simple
way and allows multiple parties to work together.
The company will continue to provide various
services to realize digital twins.

MIRAIT Group
Integrated report 2021

22

ESG

SocialBuilding and Maintaining Safe,
Reliable Technical Capabilities

Safety and quality improvement
We continuously improve our business processes that are designed to place the highest priority on safety, as well as
constantly refine the systems that support services and solutions that meet the expectations and trust of our customers.

Occupational Safety and Health Management
Companies in the MIRAIT Group operate occupational health andsafety management systems in compliance with ISO 45001 (MIRAIT
Corporation and MIRAIT Technologies Corporation are certified at allof their business locations). We work in concert to comply with laws
and regulations as well as occupational safety and healthrequirements, reduce and eliminate occupational safety risks throughrisk assessment and activities to anticipate danger, and promote
activities to establish safety and security through educational
exchanges, in accordance with the Policy on Occupational Safety
and Health, which clearly names safety as the highest priority inoperations. We continuously improve our performance by setting all
actions that lead to accidents resulting in injury or death, traffic
accidents and other seriously unsafe incidents as supervisioncheck-points.

Danger Simulation Training
Aiming to eradicate falling and slipping accidents which account for
approximately 40% of all fatal accidents in construction industry, the
MIRAIT Group holds danger simulation training for employees(including those of partner companies) at a facility where trainees canexperience simulated accidents. Experience helps trainees better
understand the importance of basic actions and safety appliances.

Striving Toward the Eradication of Accidents and Improvementof Safety Quality
Getting the basics right in our daily actions is essential to achieve thegoal of eradicating accidents and improving safety awareness of ouroperations.
For on-site workers to better understand safety, we preparematerials such as operational safety handbooks, conduct safety
trainings and review results, and make videos of accident scenes andvisual presentations of relevant laws and regulations. Fostering safety
communication with them, senior managers including the president
diligently visit workplaces to raise each worker’s awareness of safety.

Ensuring Safety During Emergencies

MIRAIT Group Safety Convention
In July 2020, we held annual “MIRAIT Group Safety Convention”
online in two sessions, one for East Japan and the other for WestJapan, with not only group companies but also partner companies
taking part, to reconfirm safety awareness and share knowledge on
safety measures (1,200 participants in East Japan and 500 in WestJapan). We held presentations from each Group company about
examples of safety measures as well as lectures by third-party
instructors to raise safety awareness even further.

In response to social needs, we have distributed a Pocket Manual for
Major Earthquakes and other Disasters to employees in case ofmajor contingencies. It contains a collection of information regarding
principles of action to be taken and safety confirmation methods
when a disaster occurs. While protecting employees from the spreadof COVID-19 and taking measures to prevent the spread of the virus
in the workplace, we also practice using a safety confirmation systemand confirm its effectiveness in the practice of flexible workstyles
including working from home and remote-based work.

VR-based danger simulation training

Quality Management

Improving Technical and On-site Capabilities

The MIRAIT Group has configured and operates a quality
management system certified under the ISO 9001, which is an
important element of the integrated management system.
Our Quality Policy, the foundation of our quality management
system, has three pillars: rapid responses to legal regulations andcustomer demands; raising customer satisfaction by improving thequality of products and services as well as construction (while making
operations efficient); and maintaining and improving QCD throughreducing quality risks. Our internal regulations clarify concrete
processes, procedures and criterion. We have also clarified thequality standards to be complied with for both internal operations andfor procurement from our partner companies.
We confirm and verify the quality of each of our works every time.
We are also pursuing more accurate and efficient verification
processes by using such tools as mobile terminals.
Every fiscal year, each group company sets targets (number offacility accidents, number of detected issues in inspection, customer
satisfaction score, etc.) depending on its operations. Results of the
progress review inform planning for subsequent fiscal years.

The MIRAIT Group implements training and technical certifications tosteadily improve the technical strengths that support service quality.

Sharing Safety Awareness・Authorization of workers for high elevation work safety
For engineers to work at high elevations safely and securely, the“Authorization of workers for high elevation work safety” has been inplace for both access and network systems.

Number of new candidates for authorization of workers
for high elevation work safety (FY 2020)

Access system

81

Network system

30

Strengthening Construction Management Capabilities
To strengthen management capabilities of the worksite supervisors*,
the core expert in business operations, “Worksite Supervisor
Training” is carried out for newly appointed worksite supervisors anddeputy worksite supervisors.
In recent years, with the increase in the number of construction
sites and with the diversification and increased complexity of
construction works, worksite supervisors who are in charge of
construction works are expected to have capabilities of dealing witha wide range of tasks and situations. The “Worksite Supervisor
Handbook” that is a culmination of the MIRAIT Group’s experienceand know-how is used during this training. In addition to learning thebasics of construction management such as budgeting and cost
control, it fosters pragmatic learning and problem-solving byadopting discussions and role-playing.
Training Specialized Technicians
Varied training programs are organized to develop specialized
technicians at the technician development working group which
involves partner companies.
At the mobile skill training, basic knowledge and know-how aswell as keys to safe construction are learned according to the skill
and operational duties of each trainee, in 4 groups according tocompetencies. Trainees can join across the boundaries of businessdepartments. Since 2010 when the training began, a total of 1,515
people have participated and improved their skills.
*Worksite supervisor is one of the supervisory positions to oversee individual works appointed by
the MIRAIT Group.

MIRAIT Technologies Corporation Employee
Receives The Minister of Land, Infrastructure andTransport’s Award for Outstanding Engineering
In October 2020, an employee of MIRAIT Corporation, KITAZOE
Tsukasa , received the Minister of Land, Infrastructure, Transport andTourism’s Award for Outstanding Engineering. This award is given to
construction engineers who are directly engaged in manufacturing on
the front lines, possess particularly excellent skills, and make a great
contribution to the guidance and training of young employees. In fiscal
2020, the award was given by the Minister of Land, Infrastructure,
Transport and Tourism to 455 construction engineers from all overJapan.

23

MIRAIT Group
Integrated report 2021

24

ESG

SocialBuilding and Maintaining Safe,
Reliable Technical Capabilities

Co-creation of social value through collaboration
with partners
The MIRAIT Group will promote the co-creation of new social values while deepening mutual understanding with its partnercompanies and other business partners to make better and stronger partnerships.

Pursuit of Open Innovation
To create the next-generation technologies and solutions, our groupcompany, MIRAIT Corporation, is promoting open innovation with afocus on collaboration with start-up companies.
● The company invested in “B Dash Fund No. 4 Investment Limited
Partnership,” a venture capital fund for Internet-related companies
managed by B Dash Ventures Inc. This investment is aimed atstrengthening relationships and creating synergies with promising
start-up companies in anticipation of the future expansion of 5G
and the smartification of society as a whole that will be driven bytechnologies such as IoT, AI, VR/AR, blockchain, and robotics.
● MIRAIT Corporation invested in Morgenrot Inc., a provider of a
distributed solution for computing power, and established apartnership with the company. The objective is to jointly develop
services that take advantage of the high-speed, high-capacity
features of 5G, and to apply them to future green energy utilization
solutions. The two companies are also collaborating on theconstruction of Morgenrot’s data center.

● MIRAIT Corporation invested in and formed a business alliancewith Museum Management & Design, Inc. (“MMD”), which has
strengths in planning, design, construction and operation offacilities such as aquariums and museums as well as urban
development. In response to the growing need for aquariums as aplace for “consumption of experiences” and also as “community
facilities” in urban redevelopment and commercial facilities in Japanand overseas, MIRAIT Corporation will contribute to the provisionof new value in community development by working together withMMD.
● MIRAIT Corporation is also working on the future verification andsocial implementation of next-generation long-distance power line
communications that will support the smart connected society of
the coming years. The company is collaborating with MMD and
NURI Telecom Co., Ltd. as well as Socionext Inc., which isdeveloping LSIs for High Definition Power Line Communication*.
High Definition Power Line Communication (HD-PLC) is a technology that conforms to theinternational standards (IEEE 1901-2020) for placing communication signals on power lines, making
it possible to eliminate dedicated communication networks and consolidate communications on
power lines by utilizing the power cords required for information equipment.

Establishment of Local 5G “Solution
Co-creation Lab”
MIRAIT Corporation launched the “Solution Co-creation Lab,” alocal 5G verification environment, in the MIRAIT Shin-Kiba
Building (Koto-ku, Tokyo) in coordination with NTT DOCOMO,
INC on April 1, 2021. The lab provides a 5G verification
environment using a millimeter band (28GHz). The company isalso preparing a 5G verification environment using a sub-6
band (4.8GHz to 4.9GHz) in the MIRAIT Toyosu Building(Koto-ku, Tokyo) in order to support 5G verification of ourpartners’ products. In addition, through collaboration, thecompany will help create new 5G solutions that will solve social
issues and realize more affluent lifestyles.

Unlocking the Potential of 5G
The communication environment enabled by 5G will bring
opportunities for innovation to a wide range of social situations.
Drone-based solutions are a prime example of this. This isbecause the stable communication environment that 5G creates isuseful for safe drone operations. One of the applications of drones
that is expanding rapidly is the management of social infrastructure.
In FY 2019, TTK Co., Ltd., which is responsible for the developmentof the MIRAIT Group’s services in the Tohoku area, participated in“DOCOMO 5G Open Partner Program” held by NTT DOCOMO, INC.
and conducted a verification test consisting of a remote building
exterior wall inspection using 5G, a drone, and AR smart glasses.
Currently, the company provides a drone facility inspection service
that mainly targets not only buildings but also steel towers and solar
panels.
As one way to demonstrate the potential of 5G, the MIRAITGroup proposes a new way of enjoying golf. The MIRAIT Corporation
participated in the “5G Utilization Idea Contest” held by the Ministryof Internal Affairs and Communications, and pitched a “5G-based
golf solution.” After conducting verification tests through this project,
the company, in collaboration with 5G-related companies, is working
to develop solutions that are valuable to players and golf course
operators from the perspective of video analysis using high-speed,large-capacity communications, robot operation based on
low-latency communications, and the use of sensor data. At the “5G
x IoT Golf Solution Exhibition” held in November 2020, the company

demonstrated high-definition video distribution, prediction of where aflying ball would fall, swing diagnosis, VR viewing of course shapes,
drone delivery of drinking water, and IoT green management.

Strengthening Cooperation with Partner Companies
In order to promote and expand its regional business, the MIRAITGroup holds annual regional exchange meetings in each region of thecountry with the aim of strengthening cooperation with partnercompanies and the business structure foundation. In FY 2020,
approximately 500 partner companies, which play a central role ineach of our businesses, participated.
In addition, the MIRAIT Corporation operates the MIRAIT
Cooperative Association, whose members are our partnercompanies. By cooperating with each other, members work to
improve safety, quality, information security, and compliance, reduce
costs, and respond to new technologies, while deepening mutual
understanding and communication. In FY 2020, the number ofmembers reached approximately 200 companies.

Organizational Chart of MIRAIT Cooperative Association
MIRAIT Cooperative Association

Regular members(subsidiaries)

Supporting members

Secretariat

Management Information
Subcommittee

Engineer Training
Subcommittee

Safety and Quality
Subcommittee

Verification Room of the Solution Co-creation Lab

Building exterior wall inspection using drones and AR smart glasses

25

MIRAIT Group
Integrated report 2021

26

ESG

SocialBuilding and Maintaining a Culture Where People Respect
Diverse Human Resources and Learn from Each Other

Promotion of human resource development,
workstyle reform, and health-oriented management
We support the growth of every employee from a wide range of perspectives, while creating a work environment where they
are motivated and able to demonstrate their abilities to the fullest, and can continue to work actively in good physical andmental health.

Personnel Training System
The MIRAIT Group considers human resource development as oneof the crucial management priorities. We have designed a personnel
training system made up of a “sectorial model system” to enhance
specialized professional capabilities for business operations and“stratified model systems” to promote mastery of common
knowledge required at each professional level (see page 28).
Supporting each employee’s growth, we are reinforcing our humanbase which, in turn, will sustain our prospective businesses.
Our human resource development system has been designed for
employees to learn skills and knowledge tailored to the role expectedof them at each level and stage of their career, from trainings for
those who just joined us to those for senior managers. Especially richprograms have been developed for new employees so that they can
perform well irrespective of their academic background. Our interview
program encourages employees to make daring challenges for
professional qualifications as they put in practice goals and career
ambitions through discussions with their supervisor. A bonus systemthat rewards different degree of employees’ challenges also
accommodates their positive attitude.

Internship Program
An internship for students is held with the aim of supporting theprofessional lives of Japan’s future generation that will be responsible forthe country’s future. Through first-hand work experiences such as
connecting communication cables, operating drones, riding in boom
buckets of bucket trucks, and visiting construction sites, we provide
opportunities for students to deepen their vocational awareness andbecome aware of the type of work they are suited for.

Improving Technical Capabilities and Promoting
Multi-Skilling
We make every effort to improve technical capabilities of each
employee to build high-quality and stable communication facilities
and systems in addition to responding more quickly to theever-changing requirements of society in order to bring satisfaction tocustomers.
Technical and Skill Training● Broad technical training for multiple skills
Support for Qualification● Goals for professional qualifications set every year at interviews
with the supervisor● Monetary incentives for acquiring designated qualifications

We actively develop capabilities in the telecommunications,electrical engineering, and ICT fields. We also seek to train drone
pilots for the expansion of drone-related businesses. We havebecome a qualified training body that provides skill certification, with
our name listed on the website of the Ministry of Land, Infrastructure,
Transport and Tourism.
As our group business environment changes, we are working tocreate human resources that can play an active role in a variety ofbusinesses by promoting multi-skilling of our employees throughencouraging them to acquire qualifications in multiple fields, in order
to be prepared for future business developments and technologies
and to maximize the use of our human resources. This will allow us
to, while maintaining job mobility, respond to new customer needs aswell as improve our cost competitiveness and corporate value by
improving productivity and creating new value.

The MIRAIT Group encourages and supports acquisition of
professional qualifications in a wide range of fields as proof of thetechnical strength of the employees.
Students standing in the boom bucket of a bucket truck

Enhancing & Revitalizing the Human Resource Foundation to Support Expansion
into New Business Domains and Operational Innovation
Expansion of Operations

Organizational Revitalization/Increase in Productivity
Growth Through Personnel Administration

In order to systematically train the next generation of management
executives, we established the “Mirai Juku,” a training program tobroaden their perspectives on corporate management and develop
their response capabilities appropriate for managers. It serves as aplace where they can promote their own growth as future managers
and develop the mindset to take charge of management, and also
contributes to the sustainability of management from a medium- tolong-term perspective.

27

Job Training Environment
At such places as Ichikawa Training Center (Ichikawa City, Chiba
Prefecture), Kansai Hyper Techno Port (Kobe City, Hyogo
Prefecture), the Expert Center (Sendai City, Miyagi Prefecture), andthe Technical Center (Hiroshima City, Hiroshima Prefecture), various
equipment has been installed for full-blown skills training andtechnology development. In addition, we are thoroughly
implementing measures to prevent the spread of COVID-19 and are
actively conducting online training. From new to veteran employees,
we will continue to improve our technical capability and ability topropose solutions on a daily basis to meet the needs of ourcustomers and contribute to the realization of the needs of society
and the times.

Evaluation/Appointment“Mirai Juku” to Nurture Management Minds of the
Next Generation

Completeness of Training Environment
Promotion of
Cross-industrial
Interaction

Experiencing Different Corporate Cultures
and Diverse Work Duties

Self-development

Business Headquarters
Promotion of Interactive
Personnel Administration

Branch Offices

Sectorial Model System

Within and Outside
the Group Companies

Gain Multiple Skills

Assurance of Diverse Human Resources
Hiring of New Graduates

Stratified Model System

Hiring of Mid-career Employees

Women

Older Adults

Company Support

MIRAIT Group
Integrated report 2021

28

ESG

SocialBuilding and Maintaining a Culture Where People Respect
Diverse Human Resources and Learn from Each Other

Promotion of human resource development,
workstyle reform, and health-oriented management

Electrical Workers (Type 1/Type 2)

Training Programs at Overseas Operations

Mentoring Program

Mental Health

The MIRAIT Group conducts various training programs for employees
hired at their overseas bases. Operating primarily in Singapore, theLantrovision Group provides cabling design and construction
services for data centers and offices at 27 bases in 13 countries andregions. Lantrovision has a full-time staff in charge of human resource
development and training and prepares a wide range of programsfrom basic training on on-site cable design, construction, and testing
to practical training such as bidding, quoting, and contracts. Throughthese efforts, the company is working to improve its employees’ skills
and motivation. In addition, the company is working to improvecustomer satisfaction and strengthen its business competitiveness byactively promoting the acquisition of certifications for each cablevendor and strengthening quality control.

A senior employee is appointed as the mentor for each new
employee, separate from his or her supervisor at the assigned
section, for guidance and counseling. With self-awareness andadvice gained through dialog, the program helps new employee(mentee) to grow in spontaneous and autonomous ways. With
feedback after periodic reports and monthly interviews, both new
employees and senior employees serving as the mentor will havechances to grow.

The “stress check system,” made mandatory under law from
December 2015, aims to provide primary precaution through raising
employees’ awareness of stress and promoting workplace reform.
Before the law was enacted, the MIRAIT Group prepared a Mental
Follow-up System (such as consultation desk) based on group
analysis after conducting stress check. Each department conducted
mental stress training through workplace reform. Efforts are being
made toward prevention of mental disorder.

Idea behind the Mentoring Program

Support for the Return of Employees on Sick Leave
Due to Mental Health Problems

2,500
2,000

1,583

1,742

1,878

2019

2020

1,500
1,000
500
0

2018

Technical Radio Operators for On-The-Ground Services (First Class)
On-The-Ground Special Radio Operator (I-Category)
2,500
2,000
1,500

1,078

1,225

1,153

1,000
500
0

2018

2019

Technical Training

2020■Total of MRT, MTC, TTK, SOLCOM, and Shikokutsuken Corporation

Guidance
Section Supervisor/Senior

New Employee (Mentee)

Changes in the number of qualified employees(of five operating companies) over the past three years
Main qualifications

FY 2019

FY 2020(as of the end of
March 2020)(as of the end of
March 2021)

Installation Technician(AI DD)

624

Type 1 Electrical Worker
Construction Managing Engineer

363

368

366

First-Class Construction Managing Engineer

362

359

349

First-Class Certified Architect

16

16

16

Qualified Managing Engineer

2,123

2,095

2,108

First-Type Electrical Worker

405

399

418

First-Class Technical Radio
Operator for On-The-Ground Services

92

96

130

On-The-Ground I-Category
Special Radio Operator

1,061

1,129

1,202

First-Class CATV Engineer

41

41

37

Cisco Certified Internetwork
Expert (CCIE)

55

52

51

1,465

1,485

1,535

72

80

95

Information Technology Engineer
JUIDA Pilot

29

FY 2018(as of the end of
March 2019)677

Mentoring Support

Employees who take medical leave or sick leave due to mental healthproblems receive full support from the mental health promotion staff,
from the start of the leave to follow-up after their return to work.
During the leave, we implement a return to work program using
our rehabilitation facilities, and if employees express the desire to
return to work, the Return to Work Review Committee makes adecision based on their doctor’s diagnosis, in cooperation with theindustrial physician and the company, and after their return to work,
we provide consideration for working conditions such as shorter
working hours and overtime restrictions.

714

MentorSupport of Health Management
In addition to regular health check-ups for all employees,
comprehensive medical examinations (for those who have reached acertain age) and specified health guidance are conducted for the
benefit of health management by our employees. We also provide
recreation facilities in several locations in Japan as opportunities tobe refreshed, and we organize activities that promote health such as
the walking events rallies held by the Health Insurance Association.

MIRAIT Group
Integrated report 2021

30

ESG

SocialBuilding and Maintaining a Culture Where People Respect
Diverse Human Resources and Learn from Each Other

Promotion of human resource development,
workstyle reform, and health-oriented management

Development of a Comfortable Working Environment

Advancing Efforts Towards Workstyle Reforms

Initiatives

In addition to complying with the Labor Standards Act and otherlabor-related laws and regulations, the MIRAIT Group has establisheda treatment system that exceeds such laws and regulations in order
to contribute to the job satisfaction of its employees.
We also respect the idea of equal pay for equal work, and toensure that non-regular employees receive the same treatment asregular employees, we pay special work allowances and overtime
allowances at the same premium rates as regular employees, grant
special leave, and promote them to regular employees.

The MIRAIT Group announced its “Workstyle Reform Declaration” by
the President to reform workstyles throughout the Group to cultivate
sustainable growth as a “comprehensive engineering and servicesfirm” that responds to future changes in the labor market andbusiness environment.
We will push forward effective workstyle reforms through thefollowing coherent and integrated approaches: (1) realization ofdiverse and alternative workstyles, (2) optimization of overtime workand promotion for employees to take leave, and (3) effective
empowerment of diverse employees through flexible workstyles.

Realizing Diverse and Alternative Workstyles
Utilizing various ICT tools to serve as COVID-19 countermeasures,major meetings such as the Board of Directors and management
meetings as well as events that were conventionally held together
can be held remotely to promote working styles that can be
implemented at virtually any location. We are also working to improvethe efficiency of operations using RPA and other means to improvethe environment for productivity improvement.

System that exceeds labor-related laws and regulations● Regular working hours (per week, per day)● Breaks, days off● Number of days of annual paid leave granted by the year of
employment● Extra pay for overtime, holidays, and late nights, etc.

Comprehensive Engineering & Service Company

A High-Productivity Company

A Venturous Company

An Attractive Company

Optimizing Overtime Work and Promoting Employees to Take
Leave
We strive to create workplaces that facilitate better employee healthand work-life balance by setting no-overtime days, encouraging
employees to leave work on time, and promoting employees to takepaid leave in conjunction with the spring and summer breaks as well
as new year holidays.
We pursue the reduction of total working hours by heightening
operational efficiency through promoting KAIZEN (improvement)
activities and ICT use at each workplace, and by monitoring whether
working hours are suitable with a PC log system.
Empowering Diverse People Through Flexible Workstyles
We are building workplaces where all the diverse people can achieve
work-life balance and efficiently produce results, by promoting flexible
and modified working hours as well as telecommuting (working from
home, on business trips, or at satellite offices) using ICT.
In addition, we have introduced a telecommuting system, andMIRAIT Holdings Corporation, MIRAIT Corporation, and MIRAITTechnologies Corporation have been providing telecommuting
employees with a 200 yen per day allowance for the number of days
they work from home to help reduce their costs since July 2021.

A

B

Reforms to Corporate
Climate and Awareness
Reforms to corporate climate andawareness include executives,
managers and regular employees
for the purpose of securing
workforce and enhancing
productivity.
Support

Reforms to Operations andSystems
Reforms in methods to advance
operations that use operational
processes and IT systems to
succeed in securing workforce andenhancing productivity.

Three
Initiatives

SupportC
Reforms to Policies and Rules
Reforms to employment regulations, personnel policies and human resource
development systems acting as the driving force to realize (A) and (B) above.

Awarded Three Stars in the “4th Nikkei Smart WorkManagement Survey”
We were recognized as a three-star company in the 4th Nikkei Smart
Work Management Survey, which selects leading companies that are
taking on the challenge of revolutionizing productivity throughworkstyle reforms.
The survey, which has been conducted by Nikkei Inc. since2017, targets listed companies and leading non-listed companies
nationwide, and defines “smart work management” as efforts tomaximize organizational performance through three elements: therealization of diverse and flexible workstyles, a system for creating
new businesses, and the ability to develop markets. Companies areevaluated on a five-star scale, based on the three elements andmanagement infrastructure, including corporate governance.

Transform Organizational and Cost Structure
Enhance Productivity and Strengthen
Cost Competitiveness

31

Further Work-Life Balance

Promote Diversity

Enhance Employee Skills andPromote HealthOrganization Where Diverse HumanResources
Actively Participate

MIRAIT Group
Integrated report 2021

32

ESG

SocialBuilding and Maintaining a Culture Where People Respect
Diverse Human Resources and Learn from Each Other

Respect for human rights and promotionof diversity and inclusion
We respect individual personality and seek to build workplaces where our employees perform to their full potentials,
regardless of age, gender, educational background, nationality, disability, sexual orientation, gender identity, etc.

Respect for Human Rights

Empowering Female Employees

In promoting its corporate activities, the MIRAIT Group respects
fundamental human rights and complies with laws and regulations
concerning workers’ rights in order to provide a working environment
in which every employee can work with enthusiasm. Needless to say,there is no room for child labor or forced labor, and we pay attention
to the protection of workers’ rights and pay our employees at least
the minimum wage stipulated by law. Even when we faced extremely
harsh business conditions in the past, we made every effort tomaintain the employment, and to date, there have been no
designated dismissals or layoffs.
In addition, we are committed to the prohibition of harassment,
etc., through stratified training to raise awareness of human rights
and compliance promotion activities, as well as addressing problemsby setting up the “Compliance Meyasubako (complaint box)” and the“Nandemo Sodanshitsu (ask anything consultation)” while taking into
consideration the protection of whistleblowers.

We devise action plans for the purpose of enabling female employees
to reach their full potential and pursue their careers in a wide range ofarenas and analyze challenges for each group company. We also set
targets mainly to increase the ratio of women in new graduate hires andin managerial positions and to expand occupational fields for women.
In doing so, we are actively promoting work-life balance andsupporting those who work as they raise children or nurse family
members.

Received a “Kurumin” Certification
MIRAIT Technologies Corporation was awarded the “Kurumin”
certification mark by the Minister of Health, Labor and Welfare forbeing supportive of those who raise children.

General Employer Action Plans based on The Act on Promotion of Women’sParticipation and Advancement in the Workplace (2 Major Companies)

MIRAIT Corporation(1) Ratio of women in new graduate hires: 30%(2) Rate of annual leave taken: 80%

MIRAIT Technologies
Corporation(1) Increasing women in managerial positions by 30%(2) Increasing the rate of use of the system that
contributes to flexible workstyles (working from home,annual leave by the hour, etc.) to 30%

Supporting Those Who Work and Nurse Family
So that employees can continue working with a sense of security for along time, parental leave (available until the child reaches three years ofage) and reduced working hours system (available until the child finishes
the third year of elementary school), and other plans are available
corresponding to major life events such as childbirth, infant care or
nursing, and these programs exceed minimum standards stipulated bylaw. The childcare leave acquisition rate among female employees is100% with the leave acquisition rate for childcare and other reasons
among male employees at over 70%. To ensure employees on

Support for Elderly Employees
In response to the declining birthrate and aging population in Japan,
we have established a reemployment system after retirement with theaim of supporting the active participation of senior human resources
who hold qualifications in advanced technologies required for thetelecommunications construction industry and have created anenvironment where applicants can continue to play active roles.
We also hold life plan seminars for employees who have reacheda certain age and support them with work designing and financial
planning after employment extension.

State of Reemployment After Retirement

TargetLabor-Management Relations
The MIRAIT Group strives to build stable labor-management relations
by establishing opportunities for regular labor-management
consultations in order to develop the company and maintain andimprove the working conditions of its employees based on mutual
trust between labor and management. In order to conduct proactive
business operations and ensure the sound development of thecompany, we regularly hold liaison meetings as well as meetings ofthe Working Hours Optimization Committee to exchange opinions
between labor and management on business plans and otherimportant issues.

childcare leave can return to work smoothly and play an active role inthe company, we are working to maintain/improve the childcare leaveacquisition rate and are implementing support measures, such asproviding information on the developments in the company during theirabsence and conducting interviews with them before their return.

Number of employees subject to mandatory retirement

101

Number of rehired employees

72

Reemployment rate

71%
*Average of five operating companies in FY 2020

Certified as an “Eruboshi” company“Eruboshi” is a certification program which awards companies
superior in empowering female workers. Companies who formulate
and report an action plan to promote women’s performance in theworkplace and implement it outstandingly are authorized by the
Minister of Health, Labor, and Welfare to use the logo mark. MIRAITTechnologies Corporation met the criteria of all five categories(recruitment, employment continuity, workstyle, ratio of female
managers, and variety of career choices) and received the third levelof certification, the highest one.
MIRAIT Corporation also satisfies all the criteria for certification.

Promoting the Active Role of Local Personnel in
Foreign Countries
The MIRAIT Group currently runs overseas bases in 15 countries andregions mainly in Asia-Pacific area where locally hired personnel
takes on important roles. Through mutual support such as dispatchof personnel between overseas bases, we seek to enhance overall
technical skills of local employees so that each employee candemonstrate his or her full capabilities.
MIRAIT PHILIPPINES INC. conducts activities to deepen its
connection and build trust with local communities such as hosting a
Christmas party with children who have disabilities.

Support system for balancing career with childcare and nursing care (MIRAIT Corporation)

33

Related items

MIRAIT Corporation’s support systems for work life balance

Legal requirements

Maternity leave

Paid for 6 weeks before and after childbirth, unpaid for the portion
exceeding 6 weeks after childbirth

UnpaidLeave for childbirth of spouse

2 days (paid)-

Leave by accumulating expired annual leave

Nursing care for family members, maternity checkups, infertility
treatment, childcare associated with the childbirth by a spouse-

Childcare leave

Under 3 years old (until turning 3 years old)

Under 1 year old (within 1 year up to 14 months
old with Dad and Mom Parental Leave Plus)

Shorter working hours for childcare

Up to 3rd grade

Under 3 years oldChild nursing leave

Up to 4th grade (Paid leave can be taken by the hour.)Before entering elementary school (unpaid)

Restrictions on overtime and late-night work

Up to 3rd grade

Before entering elementary school

Nursing care leave (short-term)

Paid leave taken by the hour

UnpaidNursing care leave (long-term)

Up to 1 year per person

Up to 93 days per person (may be divided)

Presented the 2018 Excellence Award of the Mayor’s Prize to a
Leading Company Promoting the Active Participation of Womenin Osaka CityMIRAIT Technologies Corporation received recognition for its
consistent activities as an excellent company working to promote theactive participation of women from Osaka City in addition to receiving
the Ikumen Award as a company supporting men to help raise theirchildren.

MIRAIT Group
Integrated report 2021

34

ESG

SocialSocial responsibilities in the supply chain

Helping local communities

We work to promote social responsibilities in the supply chain by considering business partners’ commitment to ESG
when evaluating and selecting them.

As a member of local communities, we actively and consistently plan and carry out programs to make communities morelivable and lively.

ESG as Evaluation Criteria for Business Partners

Support Problem-solving in Local Communities andSociety as a WholeAs part of the integrated management system, the MIRAIT Group has
internal rules for the purpose of evaluating and selecting business
partners. The rules allow us to judge the ability of business partners
to supply products and services following our requirements, and toensure procured products conform to the requirements. Bothsuppliers of materials, semi-finished products, and measurement
instruments and service providers are subject to the rules.
The MIRAIT Technologies Corporation uses common items inevaluating and selecting domestic business partners. Items directly
relevant to customer satisfaction and those for assessing commitment

to ESG are included. We give an overall score on commitment to ESG
after interviewing each business partner about their environmental
considerations (promotion systems, chemical substance management,
reduction of CO2 emission and industrial waste emission) as well as
their contributions to local communities (citizenship activities anddialogue with the communities, NPOs and NGOs).
Evaluations are conducted once a year for partners in business
relations with us, and as necessary when discussing a new partner.
We support corrective actions by partners who were given lowscores as a result of evaluation.
The MIRAIT Corporation uses a similar system to conduct
comprehensive evaluations of business partners.

Evaluation Items of Business Partners: MIRAIT Technologies Corporation
Item

Overview

Manufacturing certifications

Either the acquisition of the ISO 9001 certification, JIS certification, or establishment of a quality assurance system

Quality (1)Conformity of products for purchase to company plans

Quality (2)Any inconsistencies found in receiving inspections

Level of cooperation

Approach in cooperating with requests for product information

Supply capabilities

Availability of manufacturing facilities and inventory

DeliveryNo major impact on construction projects due to delayed delivery

Price

Level of compliance with company expectations

ESG

Active introduction of ESG efforts*Comprehensive evaluation through the questions in the table below

Area and Questions to Ask Partner Companies about ESG Activities
Area

Question

1. Environmental
considerations

a. Has your company put in place an environmental management system (ISO 14001) that it is continually improving?

Support for the Tohoku Disaster Area
We participated in the community service activities being carried out
in Iwanuma City, Miyagi Prefecture by the Miyagi Dengyo Association(disaster volunteers). The MIRAIT Group continues to be part of these
activities that began in 2011, and has built flower beds near the
temporary housing, removed debris from farmlands, and planted
trees for restoring tsunami control forests.
Shareholder Benefit Option to Donate to the Special Olympics
NipponThe MIRAIT Group endorses the purpose of the Special Olympics
Nippon. From FY 2018, we included donations to the organization in
the menu for shareholder benefits. This fiscal year, the fourth time,
we received the support of 372 shareholders and donated a total of
696,000 yen. We will keep on contributing to the creation of a society
where diverse people can live together.

Communication with Local Communities
Joining Festivals and Clean-up Activities
Traditional festivals around Japan are becoming increasingly difficult
to survive as social structures change. The MIRAIT Group companies
encourage employees to join local festivals, sometimes as bearers ofmikoshi shrines.
We also continuously take part in local clean-up activities.
Participation in Local Events
The MIRAIT Group has participated in the Toyosu Festa held by Koto
Ward, Tokyo, every year since our head office moved to Toyosu in2010. In FY 2019, a total of roughly 65 volunteers from Group
companies provided handmade air gun games, balloon art
performances and freshly-made popcorn.
MiratecDrone Corp. participated in a Halloween party held by an
English conversation school in the neighborhood of the company’s
office in October 2020, offering children a chance to experience flying
toy drones and playing games with drones.

Utilization of Abandoned Fields and Rice Paddies
In many parts of Japan, abandonment of once cultivated fields andrice paddies is increasing, causing damages by weeds, pests, birds
and animals to neighboring farmlands. Murayama Doken Co., Ltd.,
one of partner companies of the MIRAIT Group, grows rice informerly abandoned land in Tokamachi City, Niigata Prefecture, tohelp the local community. The MIRAIT Group supports this activity
and internally recruits volunteers for rice planting and reaping.

b. Does your company properly manage chemical substances in product and manufacturing processes?
c. Has your company set targets to reduce CO2 emissions and does it work to establish manufacturing, fabrication, distribution and otherprocesses with a low environmental burden?
d. Has your company set targets to reduce industrial waste, and does it process that waste appropriately?

2. Contributions to Local
Communities

a. Does your company conduct social contribution activities that contribute to the development of the local community?
b. Does your company have a system to engage in a regular dialogue with the local residents, NPOs and NGOs?

Concepts of ESG Procurement
The MIRAIT Group has put in place its own procurement guidelines
to incorporate considerations about social challenges and theenvironment into the supply chain. We seek cooperation from our35

Harvesting “MIRAITOMAI premium rice”

Volunteer clean-up activities on the banks of theHirose River in Miyagi Prefecture

Toyosu Festa

Halloween party at an English conversation school

Goryo Shrine Summer Festival

suppliers in operations related to building social infrastructure,
particularly telecommunications engineering, our main business.
The guidelines in use have focuses on six areas related to ESG:
quality, delivery, improvement activities, management stability,
environmental protection, and informational resource management.

MIRAIT Group
Integrated report 2021

36

ESG

Governance

Building and maintaining a fair
and transparent corporate group

Overview of Established Corporate Bodies

Enhancing corporate governance

Name

Basic approach

Governance Structure

We, at the MIRAIT Holdings Corporation (“the Company”),
recognize the importance of management as asocially-responsible company and have put in place organizational
structures and systems to ensure transparency and fairness indecision-making. Building relationships founded in trust with all of
our stakeholders including shareholders is positioned as the mostimportant aspect of management.
We recognize building relationships founded in trust with all of
our stakeholders as indispensable to the realization of effective
corporate governance. Therefore, we are enhancing the following
to raise effectiveness of our corporate governance:- Protect shareholder rights and equality among shareholders;- Collaborate with stakeholders other than shareholders inappropriate ways;- Disclose information in appropriate ways and securetransparency;- Deliver on responsibilities, especially that of the board of directors;- Engage with shareholders

We are a company with auditors, overseen by a board of
directors, board of corporate auditors, and accounting auditors.
We have set up a system for reciprocal cooperation where theboard of corporate auditors together with an internal audit section
and accounting auditors each perform independent inspections.
The Company has chosen the current system based on therecognition that, as a holding company, ensuring the transparency
and efficiency of management through necessary advice,
mediation and other guidance to the MIRAIT Group companies will
ensure the realization of effective corporate governance andcontribute to building a relationship of trust with all stakeholders,
including shareholders.

(No. of meetings held
in FY 2020)

Purpose/Authority

Representative

Members

Board of Directors(17)

Body to determine fundamental
management policy for the MIRAIT Groupin accordance with laws and regulations
as well as the Articles of Incorporation

President and CEO
NAKAYAMA Toshiki

Directors

YAMAMOTO Yasuhiro, TOTAKE Yasushi, TSUKAMOTO Masakazu,
AOYAMA Koji, HIRABARA Toshiyuki, IGARASHI Katsuhiko, BABA Chiharu,
YAMAMOTO Mayumi, KAWARATANI Shinichi, SUZUKI Masatoshi

Auditors

KIRIYAMA Manabu, SEKI Hiroshi, HOSOKAWA Masayoshi,
KATSUMARU Chiaki (ISHIKAWA Chiaki)

Nomination andCompensation
Committee (6)Body established as an advisorycommittee for the board of directors forthe purpose of heightening the objectivity
in matters related to the nomination andcompensation of directors

Director (Outside)
BABA Chiharu

Directors

YAMAMOTO Mayumi, KAWARATANI Shinichi, NAKAYAMA Toshiki

Board of Corporate
Auditors (11)Body to receive reports as well as discussand approve important auditing matters

Corporate Auditor
KIRIYAMA Manabu

Auditors

SEKI Hiroshi, HOSOKAWA Masayoshi, KATSUMARU Chiaki (ISHIKAWA Chiaki)

Group Presidents’Council (11)Body to receive reports and deliberate onvital policies about important mattersrelated to management policies (mainly
concerning business)

President and CEO
NAKAYAMA Toshiki

Directors

YAMAMOTO Yasuhiro, TOTAKE Yasushi, TSUKAMOTO Masakazu,
AOYAMA Koji, HIRABARA Toshiyuki, IGARASHI KatsuhikoManaging
Executive
Officers

OHASHI Daiki, MITSUYA Takaaki, KATSUKURA Tomoho, SAITO Yoshihiro,
FUKUDA Makoto, MITAKE Yasuhiro, OTOMO Jiro

OperatingCompanies

TAKAGI Yasuhiro, TAKAHASHI Masayuki, ITO Fuminori, NAGAMATSU Noriyuki,
TAKAYA Yoichiro, MIYAZAKI Tatsumi, SASAKI Takao, KAJI Akio,
TAKEDA Yoshibumi, TSURUMI Yasuo, OCHI Yasuyuki, MINOWA Yoshiaki

Directors

YAMAMOTO Yasuhiro, TOTAKE Yasushi, TSUKAMOTO Masakazu,
AOYAMA Koji, HIRABARA Toshiyuki, IGARASHI KatsuhikoManaging
Executive
Officers

OHASHI Daiki, MITSUYA Takaaki, KATSUKURA Tomoho, SAITO Yoshihiro,
FUKUDA Makoto, MITAKE Yasuhiro, OTOMO Jiro

OperatingCompanies

TAKAGI Yasuhiro

Directors

YAMAMOTO Yasuhiro, TOTAKE Yasushi, TSUKAMOTO Masakazu,
AOYAMA Koji, HIRABARA Toshiyuki, IGARASHI Katsuhiko

Auditors

KIRIYAMA Manabu, SEKI Hiroshi

OperatingCompanies

SASAKI Takao, WATANABE Yuji, OISHI Nobuya, OCHI Yasuyuki

Directors

YAMAMOTO Yasuhiro, TOTAKE Yasushi, TSUKAMOTO Masakazu,
AOYAMA Koji, HIRABARA Toshiyuki, IGARASHI Katsuhiko

Auditors

KIRIYAMA Manabu, SEKI Hiroshi

OperatingCompanies

SASAKI Takao, WATANABE Yuji, OISHI Nobuya, OCHI Yasuyuki

Directors

YAMAMOTO Yasuhiro, TOTAKE Yasushi, TSUKAMOTO Masakazu,
AOYAMA Koji, HIRABARA Toshiyuki, IGARASHI Katsuhiko

OperatingCompanies

TAKAHASHI Masayuki, ITO Fuminori, MIYAZAKI Tatsumi, SASAKI Takao,
TAKEDA Yoshibumi, TSURUMI Yasuo, TAKAGI Yasuhiro, OCHI Yasuyuki,
MINOWA Yoshiaki, KAJI Akio, NAGAMATSU Noriyuki, TAKAYA Yoichiro*Established in July 2020

Executive Committee(22)

Body to receive reports and deliberate onvital policies about important mattersrelated to management policies

President and CEO
NAKAYAMA Toshiki

Governance Structure
Election/Dismissal

General Meetings of Shareholders
Election/Dismissal

Election/Dismissal

Compliance
Executive Committee(2)

MIRAIT Holdings
Audit

Board of Corporate Auditors
Collaboration

Nomination andCompensation Committee

Collaboration

Risk Management
Executive Committee(2)

Board of Directors

Consultation/Reporting

Instruction

Supervision

ReportingPresident and CEO

Internal inspection section(Group Presidents’ Council/Executive Committee)

Investigation

Accounting Auditor

Reporting*Established in
September 2021

Audit

- Strategy Department- Finance and Accounting Department

Audit

Reporting

Various Committees

Body to deliberate and determine policies,
structure and other matters to drive theeffectiveness and efficiency of risk
management

Body to formulate basic policies andstrategies related to the promotion of
ESG-oriented management, as well as set
key issues and implement various
environmental initiatives in order tostrengthen our response to the SDGs and
ESG and enhance corporate value forsustainable growthPresident and CEO
NAKAYAMA Toshiki

President and CEO
NAKAYAMA Toshiki

President and CEO
NAKAYAMA Toshiki

Note:1 Mr. BABA Chiharu, Ms. YAMAMOTO Mayumi, and Mr. KAWARATANI Shinichi are outside directors. 2 Mr. SEKI Hiroshi and Ms. KATSUMARU Chiaki (ISHIKAWA Chiaki) are outside auditors.

- Corporate Affairs Department- M’s Brain Center, etc.

ESG Management
Promotion
Committee

Body to report and advice on complianceissues of the MIRAITGroup and examine measures, such as
raising awareness about compliance.

Instruction

Status of Accounting Auditor
Audit/Reporting

Business
Management
MIRAIT Group Companies

Consultation/Reporting(3) Certified public accountants who performed audit operations

KPMG AZSA LLC

Designated partner, engagement partner, certified public accountant NAGASAKI Yasuyuki

accounting audit operations

Designated partner, engagement partner, certified public accountant HARUYAMA Naoki

Certified public accountants: 8 people

Designated partner, engagement partner, certified public accountant NAKAMURA Kohei

Those who passed CPA exam, etc.: 4 people(2) Continuous auditing period
7 years37(4) Composition of assistants concerning(1) Name of the audit corporation

Others: 16 people
MIRAIT Group
Integrated report 2021

38

ESG

Governance

Building and maintaining a fair
and transparent corporate group

Directors and Auditors
i. Current Directors and Auditors (as of June 25, 2021)
13 men and 2 women

President and CEO

Director

Director

NAKAYAMA
Toshiki

YAMAMOTO
Yasuhiro

TOTAKE
Yasushi

FY 2020
No. of Board of Directors
meetings attended
17/17

FY 2020
No. of Board of Directors
meetings attended
17/17

FY 2020
No. of Board of Directors
meetings attended
17/17

Director and CFO

Director

Director

TSUKAMOTO
Masakazu

AOYAMAKoji

HIRABARA
Toshiyuki

FY 2020
No. of Board of Directors
meetings attended
17/17

FY 2020
No. of Board of Directors
meetings attended
17/17

FY 2020
No. of Board of Directors
meetings attended
17/17

Director

Director (Outside)

Director (Outside)

IGARASHI
Katsuhiko

BABA
Chiharu

YAMAMOTO
Mayumi

FY 2020
No. of Board of Directors
meetings attended
17/17

FY 2020
No. of Board of Directors
meetings attended
17/17

FY 2020
No. of Board of Directors
meetings attended
17/17

Director and Advisor

Corporate Auditor

KAWARATANI
ShinichiSUZUKI
Masatoshi

KIRIYAMA
ManabuFY 2020
No. of Board of Directors
meetings attended- (Newly appointed)

FY 2020
No. of Board of Directors
meetings attended
17/17

FY 2020
No. of Board of Directors
meetings attended 17/17
No. of Board of Corporate
Auditors meetings attended 11/11

Auditor

Auditor (Outside)

SEKI
Hiroshi

HOSOKAWA
Masayoshi

KATSUMARU Chiaki

FY 2020
No. of Board of Directors
meetings attended 17/17
No. of Board of Corporate
Auditors meetings attended 11/11

FY 2020
No. of Board of Directors
meetings attended 17/17
No. of Board of Corporate
Auditors meetings attended 11/11

FY 2020
No. of Board of Directors
meetings attended 17/17
No. of Board of Corporate
Auditors meetings attended 11/11* For brief biographies of directors and auditors, please refer to the Annual Securities Report.

39(ISHIKAWA Chiaki)

of shareholders.

iii. Effective Use of Outside Directors and Outside Auditors
For outside directors, we appoint individuals who have abundant
experience and knowledge across different fields and can carryout their roles and duties with a specialized and objective
viewpoint by providing guidance and managerial supervision from* The criteria for determining the independence of outside directors and outside auditors of theCompany and the status of their activities are provided in the “Annual Securities Report” and otherdocuments.

Skills Matrix for Directors and Auditors
Corporate
Management/
Business
Strategies

Sales/
MarketingConstruction/
Operation ofCommunication
Facilities, etc.

NAKAYAMA Toshiki●●

YAMAMOTO Yasuhiro●●

TOTAKE Yasushi●

TSUKAMOTO Masakazu●●

AOYAMA Koji

●

●

●

●

HIRABARA Toshiyuki

●

●

●

●

IGARASHI Katsuhiko

●

●

●

BABA Chiharu●

Technology/
Innovation/DX

GlobalBusiness

New Business
Development

Personnel/
Labor/HR
Development

●

●

●

Financial
Accounting/
Finance●

Legal/
Risk Management/
Compliance/
Governance

●

●
●

●
●
●

●

●

●

●

●

●

YAMAMOTO Mayumi

Auditors

Corporate Auditor (Outside)* The rationale for selection of each director and auditor is outlined in the notice of general meeting

Directors

Director (Outside)

the perspective of enhancing the medium- to long-term corporate
value of the company. For outside auditors, we appoint those whohave abundant experience and knowledge across different fields,
and can with independent and objective views properly monitor
the board of directors’ managerial decisions, execution of duties,
and their observance of laws and ordinances, enhancing
transparency of the board and serving greater corporate value.
Outside directors and outside auditors attend meetings of theBoard of Directors and the Board of Corporate Auditors tounderstand the management issues of the Group and receive
audit reports from auditors.
In addition, they offer their opinions as necessary from theirrespective professional and objective viewpoints, and strive toensure the transparency and efficiency of management by
exchanging opinions with other directors and auditors.

ii. Policy and Procedures for the Nomination of Candidates for
the Board of Directors and Auditors
In the nomination process of candidates for the board of directors
and auditors, the MIRAIT Holdings Corporation selects a wide
variety of candidates from both inside and outside of thecompany, consults with the Nomination and Compensation
Committee chaired by an outside director, and determines thecandidates who have excellent personalities, superior insights andhigh managerial capabilities, at the board of directors meetings
based on the replies from the Committee.

●

KAWARATANI Shinichi

●

●

●

●

SUZUKI Masatoshi

●

●

●

●

KIRIYAMA Manabu●

SEKI Hiroshi●●

HOSOKAWA Masayoshi

●

●

●
●

●

●
●

KATSUMARU Chiaki(ISHIKAWA Chiaki)

●

●

●

●

●

* The above does not represent all the knowledge and experience of directors and auditors.

MIRAIT Group
Integrated report 2021

40

ESG

Governance

Building and maintaining a fair
and transparent corporate groupiv. Board Structure that Balances Diversity in Gender,
Internationality, etc. and Appropriate Size
As a holding company that oversees various business fields, theCompany makes sure that the composition of the Board of
Directors is well-balanced by appointing individuals with a wealthof experience and superior knowledge in various specialized fields,such as business strategies, international strategies, finance, andpersonnel affairs.
In addition, the Company aims to ensure transparency andenhance corporate value by having individuals with many years ofpractical experience in corporate management, experts incorporate legal affairs and finance, and academic experts join the
Board of Directors as outside directors and provide an outside
perspective.
As for the size of the Board of Directors, we have achieved
greater effectiveness and efficiency by, while sufficiently
functioning as a holding company, having some board members
serve core subsidiary companies as well.
We have appointed a total of two women executive officers,
one director and one auditor.
The expertise and experience required of directors andauditors are shown in the “Skills Matrix for Directors and Auditors”
on page 40.
v. Efforts to Ensure the Efficient Execution of Duties by Directors
In accordance with the “Regulations of the Board of Directors,”
Board of Directors meetings are held once a month and asneeded, and 17 meetings were held during the fiscal year underreview.
The Board of Directors meetings deliberate on all matters to
be discussed at the Board of Directors meetings in accordancewith the internal regulations, and actively exchange opinions oneach matter, as well as receive quarterly reports on the status ofexecution of duties by each director.
In addition, the Board of Directors is evaluated for its
effectiveness on an ongoing basis to improve its functioning.
Also, in light of the Corporate Governance Code, the“Nomination and Compensation Committee,” a voluntary
advisory committee, has been established under the Board of
Directors in order to improve objectivity in nomination andcompensation. The Committee met six times during the fiscal year
under review, and all members attended all of the meetings.
Independent outside directors hold regular meetings withrepresentative directors to strengthen the monitoring function for
the execution of duties by directors.
vi. Efforts to Ensure the Effective Implementation of Audits by
Auditors
In addition to constantly inspecting approval requests and otherdocuments, auditors attend meetings of the Board of Directors
and various committees to gain an understanding of thecompany’s important decision-making process and the status ofbusiness execution. In addition, the auditors, the President andCEO, the Accounting Auditor, and others communicate with eachother and exchange opinions to ensure that the auditors’ audits
are conducted effectively.

41

vii. Appraisal of the Effectiveness of the Board of Directors
At the Board of Directors meetings, we check the execution ofduties by directors, including the state of compliance with laws
and regulations, the state of risk management and information
sharing, and the speed with which issues are resolved, and we
also strive to ensure the effectiveness of the Board of Directors asa whole by holding meetings between representative directors,
outside directors, and auditors.
In addition, once a year, all directors and auditors are subject
to a self-assessment of the effectiveness of the Board of Directors
with the aim of improving the functioning of the Board of Directors
as a whole and sharing awareness of the direction in which our
corporate governance is headed.
More specifically, the self-assessment is conducted through ananonymous questionnaire to ensure that candid opinions are heard,
and the questionnaire consists of major assessment items asking
about the structure, operational status, responsibility and functionsof the Board of Directors and the state of the Board of Directors as
seen from outside directors and auditors. As for collecting
responses, they are collected by an external law office with a duty ofconfidentiality, and they are analyzed by a third-party organization.
Based on the results of this analysis, our Board of Directors
has verified and evaluated the current situation and obtained
favorable results, and continues to discuss issues related to theBoard of Directors.

ix. Planning and Development of Successors for the CEO, etc.
We appropriately plan and develop successors for the CEO andother senior management based on our management philosophy
and business strategies. When appointing a CEO, the Nomination
and Compensation Committee, chaired by an independent
outside director, is consulted, and based on its report, the Boardof Directors votes on the appointment.
x. Compensation, etc. of Executive Officers(1) Basic Policy
With regard to the compensation of directors, the total amount(limit) is set by the General Meetings of Shareholders after
approval by the Board of Directors, and each director receives
compensation in accordance with their roles and responsibilities.
As well, with regard to the policy for deciding the compensationfor each director, for the purpose of enhancing objectivity andtransparency, the “Nomination and Compensation Committee”(chaired by an independent outside director), which is an advisory
body to the Board of Directors and consists of three independent
outside directors and the President and CEO, reports the results of
its deliberations to the Board of Directors, which then makes
decisions based on the report.
Outside directors, who are responsible for supervisory
functions, are paid only monthly basic compensation in light of
their duties.
* Details of compensation for executive officers are provided in the “Annual Securities Report.”[Overview of the Effectiveness Assessment for FY 2020][Major opinions]
Discussions should be deepened on matters related to theframework of the new company emerging after the businessintegration scheduled for early FY 2022, such as the vision andcorporate philosophy of the new company, the long-term directionof the group as a whole, and the governance system to realize it,
as well as the increase in the number of group companies and thefurther enhancement in the risk management system andoperational aspects with the new company in mind.
[Measures]
Efforts are being made to maintain and improve the effectivenessof the Board of Directors on an ongoing basis by further deepening
the Board of Directors’ discussions through “Deliberation Forum”(established in FY 2017) where members of the Board of Directors
can freely exchange opinions on medium- to long-term businessstrategies and management issues.

viii. Training of Directors and Auditors
We provide an executive officers’ training program for directors
and auditors to deepen their awareness of their roles and legal
responsibilities on a regular basis. The training program covers
basic matters such as the significance of corporate governance,
insider trading, and the Construction Business Act, as well ascase studies on corporate scandals and trouble.
In addition, outside directors, outside auditors, and others areprovided with opportunities including inspections of businessestablishments of operating companies and construction sites, as
appropriate, so that they can deepen their understanding of ourbusiness content and current conditions.

(2) Introduction of Performance-linked Compensation System
We have introduced the “Board Benefit Trust,” aperformance-linked stock compensation system, for the purposeof clarifying the linkage between the compensation of executive
officers and the Company’s business performance and stock
value, and heightening awareness about contributions to theimprovement in the business performance and corporate value
over the medium to long term.
As the indicators for performance-linked compensation, we
have chosen consolidated operating income and ROE, whichshould help heighten awareness about contributions to theimprovement in business performance and corporate value of thegroup companies. The Company grants points calculated bymultiplying the standard points set in accordance with the internal
regulations on issuing shares to executives by theperformance-linked coefficient corresponding to the Company's
consolidated operating income and ROE, and awards one shareper point at the time of retirement.
(3) Percentage of the Amount of Monetary Compensation and
the Amount of Performance-linked Compensation, etc.
Monthly Compensation(Fixed Compensation)

Variable Compensation

Performance-linked Compensation(Non-monetary Compensation)

80％

20％

6％

Note: In consideration of insider trading regulations, etc., and in order to heighten managementawareness and common goal awareness of increasing shareholder value, all directors(excluding outside directors) are required to contribute at least 10% of their monthly
compensation to the Executive Officers’ Stock Option Plan, which effectively changes the(4) Matters Concerning Delegation of Authority for Determining
Compensation, etc. of Individual Directors
For FY 2020, it has been resolved that the decision on the amountof basic compensation for each director and the amount ofbonuses based on the business performance of each fiscal year
would be left to President and CEO NAKAYAMA Toshiki,
assuming that the Nomination and Compensation Committee
would be consulted within the range of the total amount approvedat the General Meeting of Shareholders, based on the resolutionof the Board of Directors on June 24, 2020. The reason fordelegating these authorities is that the President and CEO isconsidered to be the most suitable person to evaluate theexecution of duties by each director while having a bird’s eye viewof the company’s overall business.
(5) Total Amount of Compensation for Each Executive Class,Total Amount of Compensation by Type, and the Number of
Eligible Executive Officers

Executive Class

Total AmountofCompensation(Million Yen)

Total Amount ofCompensation by Type(Million Yen)
Fixed
Performance-linked
Compensation
Compensation

Number of Eligible
Executive Officers(People)Directors(excluding outside
directors)

115

90

24

11

Auditors(excluding outside
auditors)

24

24

—

2

Outside executive
officers

39

39

—

5

(6) Total Amount of Consolidated Compensation, etc. for Each
Executive Officer
This information is not provided because no executive officer
received a total of 100 million yen or more in consolidated
compensation, etc.

Transactions with Related Parties
We require that competitive transactions and conflict-of-interest
transactions conducted by directors be deliberated and approvedby the Board of Directors, and that the status of such transactions
be reported to the Board of Directors on a regular basis.
We require executive officers to submit a “Related Party
Confirmation Statement” to ascertain whether there are anytransactions with related parties, such as themselves, their close
relatives, organizations they represent, and organizations in which
they hold majority voting rights.
With regard to transactions with major shareholders, inaccordance with internal regulations, the person withdecision-making authority is required to confirm the appropriatenessof such transactions to ensure that they do not harm the Company
or the common interests of shareholders, and report particularly
important transactions to the Board of Directors.

percentages: 72% for fixed compensation, 28% for variable compensation, and 14% for
non-monetary compensation (stock-based compensation).

MIRAIT Group
Integrated report 2021

42

ESG

Governance

Building and maintaining a fair
and transparent corporate group

Cross-Shareholdings

Messages from Our Outside Directors
It is indisputable that sound corporate governance is an indispensable cornerstone ofApr. 2005

Deputy President (Representative Director), Mizuho Trust & Banking Co., Ltd.

a company’s business activities. Based on this recognition, the Company has beenJun. 2007

Corporate Auditor (Full-time), Japan Energy Corporation

Jun. 2012

Corporate Auditor (Full-time), JX Nippon Mining & Metals Corporation

Jun. 2015

Outside Director, Saitama Resona Bank, Limited

Jun. 2017

Outside Director and Audit Committee Member, Resona Holdings, Inc.

Jun. 2018

Outside Director of MIRAIT holdings (to present)

Jun. 2020

Outside Director and Audit Committee Chair, Resona Holdings, Inc. (to present)

working to improve its system through repeated discussions at the Board of Directors
and its advisory body, the Nomination and Compensation Committee. As for outside
directors, following the appointment of our first woman director last year, we haveadded one more director this year, bringing the total to three. In response to thiswelcome addition to our team, we have established a regular forum for outside
directors to exchange opinions and share awareness of issues with each other. Also,with regard to ESG management, which has been attracting increasing attention(currently JXTG Nippon Oil & Energy Corporation)

Outside Corporate Auditor, Tohoku Electric Power Co., Inc.

Outside Director and Corporate Auditor, Tohoku Electric Power Co., Inc.

recently, the Company has established the ESG Management Promotion Committee,
chaired by the President, to establish a management-led promotion system.

i. Criteria and Concepts for Classification of Investment Shares
Our group classifies shares that it holds for the following purposes
as investment shares for non-pure investment purposes, andshares that it holds for other purposes as investment shares forpure investment purposes.
A. Maintaining and strengthening business relationships with theinvestee company
B. Maintaining and strengthening cooperative relationships topromote alliance business
C. Cooperating for efficient construction, etc.

Therefore, we believe that the effort for system improvement has steadily borne fruit.
Meanwhile, new challenges regarding corporate governance have also emerged, suchas the revision of the Corporate Governance Code. In addition, in the coming year,
the Company plans to integrate with its main subsidiaries, MIRAIT Corporation and
MIRAIT Technologies Corporation, in order to make a further leap forward in its
business, and we believe that it will be necessary to further improve our corporate

Outside Director

governance system to suit these new circumstances. As an outside director, I would

BABA Chiharu

like to continue to make a solid contribution.

The term “corporate governance” refers to a system that enables a company to makeApr. 1984

decisions in a transparent, fair, prompt and decisive manner, taking into account theSep. 1990

Established Ginza Sogo law firm

position of each stakeholder. The Company has been implementing such a system forJan. 2005

Established Ginza Shin Meiwa law firm

Dec. 2010

Public Interest Member of the Central Labour Relations Commission

Jan. 2019

Member of the Financial System Council, Financial Services Agency (to present)

Jun. 2019

External Audit & Supervisory Board Member, Morinaga Milk Industry Co., Ltd.

Jun. 2020

Outside Director of MIRAIT holdings (to present)

some time now with full awareness of the principles (Corporate Governance Code) toensure its effective implementation, and the system has proven to be effective. Thisfiscal year, the number of outside directors was increased again. In order to contributeto substantive discussions at the Board of Directors’ meetings, the Company
continues to actively provide outside directors with advance explanations and site
visits, etc., which are even more comprehensive than in the past. The Nomination andRegistered as an Attorney at law Joined Takeo Ishiguro law firm

(to present)
Apr. 2021

Member of the Labour Policy Council (to present)

Jun. 2021

Outside Director, JCU Corporation (to present)Compensation Committee, chaired by an outside director, engages in lively
discussions at every meeting. The Company is also working to comply with the revised
Corporate Governance Code by disclosing the Skills Matrix for directors and endorsing
the TCFD. In addition, system development is also underway with a view to further
strengthening governance. The Company’s stance, as seen in these efforts, is to behighly commended. Looking ahead to the integration of the three companies and theestablishment of the new group in the next fiscal year, we need to be creative in ourefforts, including system improvement, to ensure that the organizational changes do
not result in a decline in group governance, and I believe that this is a challenge. The

Outside Director

Company is doing a good job for the earth, and I would like to be of some help as an

YAMAMOTO Mayumi

outside director so that the Company can develop and grow further.

I was appointed as Outside Director in June 2021. The Company is primarily engaged

Nov. 1988

President, Atlux Corporation (NOC Outsourcing & Consulting Inc.)in “creating” and “preserving” information and telecommunications infrastructure,

Oct. 1997

General Manager, Information and Communications Division, New York Office,Nov. 1999

CEO, Entrepia Ventures, Inc.

which is the most important foundation for life and business in modern society andwill affect the future trend of economic development, and therefore, it recognizes thatthe establishment of corporate governance is one of its top priorities in order to carryout stable business operations and fulfill its social responsibilities. Focusing on
effectively achieving the objectives of the Corporate Governance Code, the Board of
Directors has not just established and operated the Nomination and Compensation

Nissho Iwai American Corporation
Apr. 2007

Assistant General Manager, Industrial Information Group, Sojitz Corporation

Apr. 2011

Representative Director and President, Nissho Electronics Corporation

Jan. 2014

Representative Director, VistaNet, Inc. (to present)

Jun. 2021

Outside Director of MIRAIT holdings (to present)

Committee chaired by an outside director and appointed a woman outside director,

Management of Insider Information as well as Timely
and Fair Disclosure

but is also making various efforts aiming to ensure active and substantive discussions
at the Board of Directors meetings. As the Company expands into new businessfields for future development and aims to further expand overseas, I believe that oneof the challenges will be to build a seamless corporate governance foundation for the
MIRAIT Group by working more closely with consolidated companies in Japan andoverseas. I will strive to contribute to the Company as an outside director by drawing
on my past experience in overseas business and group company management.

43

ii. Methods of Verifying the Holding Policy and Rationality ofInvestment Shares Held for Non-Pure Investment Purposes,
and Details of Verification by the Board of Directors, etc. as
to Whether or Not to Hold Individual Issues
A. Holding policy
Our group holds shares of its business partners when it believes
that holding such shares will enhance the Group’s corporate value
and benefit its shareholders. After reviewing the purpose ofholding shares and the status of transactions, etc., if the holdingof such shares is deemed to be of little significance throughquantitative and qualitative verification, we will gradually reduce
the holdings through divestment, etc.
B. Methods of verifying the rationality of shareholding
We conduct quantitative and qualitative verifications of investment
shares held for non-pure investment purposes in terms of
medium- to long-term economic rationality and future prospects
based on return and risk, etc.
C. Details of verification by the Board of Directors, etc. as towhether or not to hold individual issues
With regard to investment shares held by the Group for non-pureinvestment purposes, we conduct a review of the purpose ofholding such shares, the status of transactions, etc., anddetermine whether or not to continue holding such shares byverifying each individual issue quantitatively and qualitatively oncea year at a meeting of the Board of Directors, in terms of whether
the returns and risks associated with the holdings arecommensurate with the cost of capital, the purpose of theholdings, future business trends, etc.
We are divesting shares for which, as a result of theverification, we believe there is little significance in holding, taking
into consideration the share price and other factors. In addition,
we will manage the status of holding and reduction of investment
shares held in the entire Group for non-pure investment purposes
through annual verification. Based on the above policy, etc., wedivested 18 issues in FY 2020.

Outside Director

KAWARATANI Shinichi

The MIRAIT Group discloses accurate information in a timely
manner through TDnet and EDINET in accordance with theDisclosure Policy published on the website and in othercorporate materials. We also make use of mediums such as our
corporate website (https://www.mirait.co.jp/en/) and press

releases in an effort to further broaden our dissemination of
information. Furthermore, the MIRAIT Group strives to provide
beneficial information that is easy for shareholders and otherinvestors to understand, such as materials used in its IR activities.
We fully and properly manage information according to insider
trading regulations when in the possession of important
information not yet released to the public domain when talking
with all shareholders and other investors.

Efforts to Enhance Communication
The IR Office undertakes investor relations activities as thedepartment in charge of investor relations under the supervision of
the CFO, who is the manager responsible for the handling of
information. The managers responsible for investor relations
handle consultations with all of our shareholders and otherinvestors as much as possible.
The MIRAIT Group holds financial results briefings twice a year
for analysts and institutional investors and distributes the briefings
on its website, etc. In addition to providing important information
in English in a timely manner to overseas institutional investors, we
also engage in overseas IR activities in the North American,
European and Asian regions. Our representatives also work to
explain matters fully at these financial results briefings and in ouroverseas IR activities to encourage constructive dialogue with allof our shareholders and other investors.
In addition, in order to help people deepen their understandingof our business, we participate in online company information
sessions streamed live for individual investors, as well as individual
investor information sessions held by securities companies asappropriate.
The opinions of shareholders and investors are provided as afeedback to management at meetings of the Board of Directors
and the Group Presidents’ Council.
Furthermore, the Group also sends MIRAIT Report booklets
that include business performance and topics to all of theshareholders twice a year.

Efforts to Vitalize the General Meetings ofShareholders
With regard to the operation of the General Meetings ofShareholders, we aim to help shareholders understand better, forexample, by printing the convocation notice in color and using
video images to present business reports. The convocation
notice, reference documents, and reports are also available on our
website.
The 11th Ordinary General Meeting of Shareholders was heldon June 24, 2021 on a reduced scale as a countermeasureagainst the spread of the new coronavirus. In order to deepen theunderstanding of shareholders and others who were unable toattend the meeting, the business report was posted in a video
format on our website in advance, and the meeting was streamed
live on the day of the meeting. For those shareholders who wereunable to watch the live broadcast of the General Meeting, thevideo recording of the meeting is posted on our website forviewing afterwards.
MIRAIT Group
Integrated report 2021

44

ESG

Governance

Building and maintaining a fair
and transparent corporate group

Thorough Risk Management

Thorough Compliance
Thorough Compliance

Thorough Risk Management
The MIRAIT Way

We have formulated the “MIRAIT Way,” which organizes theCharter of Corporate Ethics that summarizes basic policies andspecific conduct guidelines concerning corporate ethics together
with the Basic Management Philosophy and Code of Conduct,
which are the basis for forming a corporate culture. The MIRAIT
Way has been made known to all executive officers andemployees of the corporate group.
In addition, we have established conduct guidelines
concerning “prohibition of bribery, handling of entertainment andgifts," “insider trading regulations,” "prohibition of acts of conflictof interest," and "confrontation with antisocial forces" based on
the “Compliance Manual,” and are making efforts to thoroughly
prevent corruption.
The “Compliance Executive Committee” deliberates on
individual problems within the corporate group and manages the
progress of compliance promotion activities. The Committee met
twice during the fiscal year under review.
The internal audit section conducts monitoring to verify theeffectiveness of compliance promotion activities.
In addition, at MIRAIT Corporation, we not only conduct
operational audits, but also appoint compliance promoters in eachorganization to conduct voluntary checks.
As well, we promote compliance by conducting an annual
survey to find out to what extent employees understand and areaware of compliance and the risks involved in their daily work.
(1) Training
We have established basic matters related to our compliancepromotion activities through our “Compliance Regulations,” andare working to improve compliance awareness by providing
compliance training for all executive officers and employees.
(2) Development of Internal Reporting System
We have established the “Compliance Meyasubako(complaint box)” and the “Nandemo Sodanshitsu (ask anything
consultation)” as the internal reporting system for the corporategroup, and have a system in place that enables us to directly
identify and take prompt action against any problems, e.g.,compliance violations such as embezzlement, bribery, collusion,and corruption, as well as working environment and various
discrimination issues related to human rights (includingharassment). The received information is reported to the“Compliance Executive Committee.”Due Payment of Taxes
The MIRAIT Group observes all laws and regulations concerning
taxation practices in all countries and regions where it operates,consistently working to maintain and raise its standards oftaxation compliance.

45

Basic

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

In accordance with the “Risk Management Regulations,” we haveestablished a basic policy and promotion system for risk
management as a corporate group, and are responding
appropriately to various risks based on our risk management plan.
The “Risk Management Executive Committee” deliberates on thestatus of risk management and individual issues within theManagement
Philosophy

Code of Conduct

Charter of Corporate Ethics

Major risks

Overview

Measuresi. Dependence on specificbusiness partners

Our group’s main business partners are the NTT Group and othertelecommunications companies, which account for a large
percentage of our sales, and their capital investment trends andtechnological innovations may affect our group’s businessperformance.

In addition to accelerating the shift in our business structurefrom the telecommunications carrier business to thesolutions business, we are taking on the challenge ofcreating new business opportunities that go beyond theframework of conventional business fields and technologies.

ii. Safety and Quality

In the event of unforeseen circumstances due to serious accidents orserious quality problems, the Group’s business performance may beaffected by loss of trust from business partners, restrictions on sales
activities, etc.

Utilizing an integrated management system for safety andquality introduced by operating companies, our group is
united in its efforts to manage safety and quality so that we
can deliver high quality engineering and services that are
trusted and valued by our customers.

iii. Management ofImportant Information

Through our business activities, we may obtain technical data,
personal information, and other important information from ourbusiness partners. In the event that information is leaked due tounforeseen circumstances or is misused, our group’s businessperformance may be affected by loss of trust from business partners
and liability for damages.

We are using the ISMS (Information Security Management
System) introduced by our operating companies andworking together as a group to thoroughly prevent
information leaks.

iv. Credit Uncertainty ofBusiness Partners

In the event of credit uncertainty in our business partners, we may
not be able to collect construction payments or need to delay
construction work, which may affect our group’s businessperformance.

Our group is working to avoid credit uncertainty risk bymanaging the creditworthiness of our business partners
through the use of external investigative agencies, etc., andby having our legal staff review contracts.

v. Holdings

While we hold securities and other assets due to the necessity ofbusiness operations, our group’s business performance may beaffected by significant fluctuations in their market value.

When we find little significance in holding any securities, etc.
through quantitative and qualitative verification, we gradually
reduce them to avoid market value fluctuation risk.

vi. Natural Disasters, etc.

Our group’s business performance may be affected by unforeseen
circumstances, such as direct damage to our employees,
collaborators, or facilities caused by a large-scale disaster or an
epidemic of infectious diseases, or delays in the delivery of materials
and equipment due to a disruption in the supply chain.

In preparation for earthquakes and other natural disasters aswell as infectious disease outbreaks, our group has taken
various measures, including the formulation of a BCP(business continuity plan), the establishment of an employee
safety confirmation system, disaster drills, and a shift to a
new work style.

vii. Overseas BusinessOur group operates in foreign countries, mainly in Asia and Oceania,
and our business performance may be affected by significant
changes in political and economic conditions, exchange rates, andlegal regulations, as well as epidemics of infectious diseases, sharp
rises in material prices, and significant increases in unit labor costs in
the host countries.

We strive to prevent and avoid such risks by gathering
information within the Group, and operating from moderately
scattered countries.

Corporate ethics, social norms, CSR

Compliance Promotion Structure

Auditors

Compliance
Executive Committee
Chair:
President
Members:
General Manager of the Corporate Planning Department
General Manager of the Corporate Affairs Department
Others appointed by President

Secretariat

Consultation
Desk

corporate group, and met twice during the fiscal year underreview.
In addition, the internal audit section conducts monitoring toverify the effectiveness of risk management.
As of the end of March 2021, the following are the main risks
that we recognize as having the potential to affect our businessperformance and financial position.

(Corporate Affairs Department)

Development of Internal Control System
Our board of directors has adopted the Basic Policies for theInternal Control System to ensure the appropriateness ofoperations of the MIRAIT Group. We have also enacted
Administrative Regulations for Subsidiary Companies and aGroup-wide internal control system in our effort to appropriately
manage the Group through specific internal controls at our

subsidiary companies.
In addition, we manage important matters that have asignificant impact on the entire corporate group by receiving
reports from and discussing with subsidiaries, and take necessary
measures as a corporate group.
* Details of the “Basic Policies for the Internal Control System” adopted by the Board of Directors
are provided in the “Annual Securities Report” and other documents.

MIRAIT Group
Integrated report 2021

46

Financial Data (Consolidated)

We strive to maintain a sound financial footing and make accurate financial information promptly available
by various means including via our website and brochures. By doing so, we hope that our Group will continue
to be a corporate organization that is supported and trusted by society.
*The latest information can be found at our website (https://www.mirait.co.jp/en/)

Orders received/Net sales
6,000

Gross profit/Gross profit margin(billion yen)

700

5,000

600

4,749 4,637
4,465 4,411

4,000(billion yen)

(%)

12.7

3,263 3,129

400

12.5
11.8

500

3,926 3,759

SG & A/SG & A ratio
15(billion yen)

(%)

10

50

(yen)

80

13.1
607

12

397

7.4

300

306

301

7.0

8

40

40

300

3

0

0

(%)

95.4

80

6.6

262

6

30

60

59.0

40
4

6

200
100

100

60

200

1,000

(%)

40

35

6.8

230

9

3,000
2,000

Total return ratio

45

521

469

400

Dividend payout ratio

Dividend per share

100

20

2

10

0

0

40

26.7

24.1

19.6

20

24.1

13.5

20
13.5

2017

2018

2020 (year)

2019

2017

■Orders received ■Net sales

2018

2019

2020

0

(year)

2017■Gross profit ■Gross profit margin

Operating income/Operating income ratio
400

0(billion yen)

(%)

10

2019

6.5

5.5

5.3
200

8

301

219

(billion yen)

(%)

10
8

6.8
5.7
200

5.0

206

167

317
300

6

178

5.8
219

300

(billion yen)

(%)

0

0
2017

2018

2019

2020

100

0

■Operating income ■Operating income ratio

Total assets/Net assets
4,000

2,500

2020

2,364

2,187

2,313

1,500

59.3

2,263

61.2

2,500

63.1

2

2019

■Total assets ■Net assets

2020 (year)

100

20

80

16

60

12

1,500

0
2018

2019

2018

2019

2020

(year)

2020■Own capital ■Capital-to-asset ratio

Capital investment/Depreciation
200(year)(billion yen)

0
2018

2019

160

150

1,000

229.5

126
120

105
91

145.4
80

149.9

40

0

0
2017

2018

2019

2020

(year)

30

Cash and equivalents/Interest bearing debt

15.4

(billion yen)

400

0
2017

2018

2019

2020

(year)

201720182020 (year)

2019

200

8

Cash Flow
500

300

316

327
278

200
100

-100
56

101
38

2020

(year)

125
25

79

64

-36
-100

-200

18

-12
-71
-135

-19

-28
-91

-300

0

0

434

0

190

100

416

300

132

4

(billion yen)

400

356

300

11.0

2019

40

■Capital investment ■Depreciation

500

2018

62

58

500

2020 (year)

(%)

2017

193

295.3

200

-322

-400
2017

2018

2019

2020 (year)■Cash and equivalents ■Interest bearing debt
■Net cash

47

2017

(year)

1,733.1

322

20

2017

2020

50

2017

40

0
2018

2019

(yen)

300

1,933.8 2,006.4

8.8

500

2017

350

2,232.2

2,000

7.4

0

(yen)

428

1,000

800

2018

100

0

1,372

1,407

2017

Net income per share

3.4

Return on equity (ROE)

1,964
58.0

(year)■Net income ■Net income ratio

(%)

2,154

2020

5.2
4

3.7

(year)(billion yen)

2,000

1,995
1,600

2019

10

6

50

■Ordinary income ■Ordinary income ratio

3,587

3,521

3,200
2,400

0
2018

Own capital/Capital-to-asset ratio(billion yen)

3,314

2

2017

2019

Net assets per share

8

115

4

(year)

2018

250
152

150
100

2

2017

6.8

6

5.3

242

250
200

232

4
100

(year)Net income/Net income ratio attributableto owners of parent

257
300

2020

0

■SG & A ■SG & A ratio

Ordinary income/Ordinary income ratio
400

2018

0

327

2017

2018

2019

2020

(year)■Operating cash flow ■Investment cash flow ■Financial cash flow ■Free cash flow
Net income attributable to owners of parent in FYE March 2019 includes extraordinary profit(10 billion yen) that accrues from the management integration

MIRAIT Group
Integrated report 2021

48

Non-financial Data

Status of Shareholders As of March 31, 2021

The MIRAIT Group also prepares and discloses material non-financial data from its business activities,

The latest information can be found at our website (https://www.mirait.co.jp/en/)taking steps to widen its scope.
Environment

2016

2017

2018

2019

2020

7,095t-CO₂***

8,359t-CO₂***

8,868t-CO₂***

14,856t-CO₂***

17,586t-CO₂***(Repeat: Emissions from providing data center services)

–

–

–

(3,057)(8,017)

Total annual amount of green energy generated by the Company (solar)–

124 thousand kWh*

138 thousand kWh*

132 thousand kWh*

137 thousand kWh*

48,960kw***(212,118kw***)

87,677kw***(299,795kw***)

48,929kw***(348,724kw***)

14,510kw***(363,234kw***)

35,463kw***(398,697kw***)

CO₂ emissions (t-CO₂)※※Power generation capacity of other companies’ renewable energy
generation facilities constructed by the Group (cumulative total)

Ensuring Worker Safety

Occupational accident frequency rate

0.18*

0.19*

0.00*

0.18*

0.35*

Promoting
Health-oriented
Management

Number of work-related accidents (fatalities) among regular employees※

–

–

0*

0*

0*

Development of
a Comfortable Working
Environment

–

–

0*

0*

0*

Stress check participation rate※

–

–

–

–

98.4%

Percentage of highly stressed employees※

–

–

–

–

9.9%

Turnover rate (past 3-year average for new graduates)※

–

–

–

–

6.8%

Number of employees who took sick child leave※

–

–

–

–

41 people

Average age※

–

–

–

–

41.9 years old*

Number of work-related accidents (fatalities) among contract employees※

Total outstanding shares : 108,325,329 shares (including 6,482,718 treasury shares)
Number of shareholders : 24,955 (excluding treasury shares)

Major shareholders (top 10)
Name

Number of shares held (in hundreds)

Ownership (%)

Custody Bank of Japan, Ltd. (trust account)

109,363

10.74

The Master Trust Bank of Japan, Ltd. (trust account)

95,573

9.38

Sumitomo Electric Industries, Ltd.

36,687

3.60

GOVERNMENT OF NORWAY

25,043

2.46

–

–

–

–

30.9%

Advancing Efforts Towards
Workstyle Reforms

Rate of annual paid leave

53.3%****

57.1%****

64.7%*

63.0%*

60.7%*

Average overtime hours※

–

–

–

–

24.9 hours*

Promoting Diversity

Ratio of women in new graduate hires

23.9%****

24.6%****

16.7%

23.1%

23.2%

Sumitomo Densetsu Co., Ltd.

24,886

2.44

MIRAIT Holdings Employee's Stock Option Plan

19,303

1.90

Custody Bank of Japan, Ltd. (trust account 5)

14,439

1.42

Ratio of managers(Women’s participation)※

Ratio of women in managerial positions

2.7%****

2.9%****

2.7%

2.7%

3.3%

Women directors (executives)

1 people****1 people****2 people3 people3 people

100%*

100%*

100%*

100%*

100%

Number of women who worked shorter hours for childcare※

–

–

–

–

47 people

Custody Bank of Japan, Ltd. (trust account 9)13,851

1.36

Average age of women※

–

–

–

–

36 years old*

STATE STREET BANK AND TRUST COMPANY 505001

13,177

1.29

Promoting Diversity

No. of mid-career employees hired (incl. those with significant experience)※

–

–

–

–

134 people(Hiring of older, mid-career,or disabled persons)Non-regular employees (contract employees, dispatch employees)※

–

–

–

–

1,783 people

Mizuho Bank, Ltd.

13,005

1.28

Rate of parental leave taken by women employees

Disabled persons employment rate※

Helping Local Communities

Corporate citizenship spending

Thorough Compliance

Serious violations of laws and regulations (number of cases)

Diversity* For reference, detailed items
are disclosed fromMIRAIT Corporation’s data.

–

–

–

–

2.15%

36 million yen****30 million yen****35 million yen****36 million yen****28.6 million yen****0 cases**1 The ratio of shares held is calculated after subtracting the treasury shares (6,482,718).
*2 The number of shares held shown is rounded down to the nearest 100 shares and the ownership is calculated by rounding off to two decimal places.

–

–

–

–

Compliance training (participation rate)※

–

–

–

–

100%*

Compliance questionnaire (response rate)※

–

–

–

–

81.2%*

Internal reports (number of cases)※

–

–

–

–

62 cases*

Share distribution by owner type (excluding treasury shares)
Number of shares by owner type※

Total number of new recruits

66 people*

59 people*

56 people*

75 people*

128 people*

Number of women recruits

15 people*

14 people*

14 people*

17 people*

29 people*

Ratio of new women recruits

22.7%*

23.7%*

25.0%*

22.7%*

22.7%*

National and local governments(shares)ratio

所有者別株主数(shareholders)

ratio

100

0.0%

National and local governments

1

0.0%

Total number of managerial positions

697 people*

502 people*

761 people*

902 people*

938 people*

Financial institutions

39,358,572

38.6%

Financial institutions

56

0.2%

Number of women in managerial positions

19 people*

17 people*

22 people*

26 people*

29 people*

Financial instruments business operators

1,939,201

1.9%

Financial instruments business operators

37

0.1%

Ratio of women in managerial positions

2.7%*

3.4%*

2.9%*

2.9%*

3.1%*

Total number of directors (executives)

12 people*

12 people*

14 people*

15 people*

13 people*

Other corporations in Japan

12,473,583

12.3%

Other corporations in Japan

321

1.3%

Women directors (executives)

1 people*1 people*1 people*1 people*0 people*

Foreign corporations, etc.

24,402,569

24.0%

Foreign corporations, etc.

245

1.0%

Ratio of women directors

8.3%*

8.3%*

7.1%*

6.7%*

0%*

Individuals/other

23,668,586

23.2%

Individuals/other

24,295

97.4%

Total number of employees

2,597 people*

2,607 people*

2,655 people*

2,716 people*

2,882 people*

Number of women employees

148 people*

166 people*

180 people*

193 people*

255 people*

Total (excluding shares owned by the company)

101,842,611

100%

Total (excluding shares owned by the company)

24,955100%

Ratio of women employees

5.7%*

6.4%*

6.8%*

7.1%*

8.8%*

Average employment years

14.7 years*

14.7 years*

14.9 years*

14.8 years*

15.3 years*

Average employment years for women

12.4 years*

11.8 years*

11.6 years*

11.8 years*

11.2 years*

Percentage difference in average employment
years for women to men employees

15.6%*

19.7%*

22.1%*

20.3%*

26.8%*※ Disclosed from FY 2020※※ FY2019 - Revised due to improved
compilation accuracy

49

Total authorized shares : 330,000,000 shares

About the Numerical Data

Not indicated: Value is the total for MIRAIT Holdings Corporation, MIRAIT Corporation, MIRAIT Technologies Corporation, TTK Co.,Ltd.,SOLCOM Co.,Ltd. and Shikokutsuken Co.,Ltd. - the six companies*: Non-consolidated(MIRAIT Corporation only)**: Non-consolidated(MIRAIT Technologies Corporation only)***: Total for MIRAIT Corporation and MIRAIT Technologies Corporation- the two companies****: Total for MIRAIT Holdings Corporation, MIRAIT Corporation and MIRAIT Technologies Corporation- the three companies

MIRAIT Group
Integrated report 2021

50