Comprehensive Engineering and Service Company

MIRAIT Group

Corporate Report

2019

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

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

Group Overview
Corporate Report

2019

CONTENTS

Overview of MIRAIT Holdings Corporation

List of Group Companies

Date of establishment
October 1, 2010

▶ MIRAIT Corporation

Editorial Policy

M’s Frontier Corporation / DAIMEI TECHNO CO., LTD. / KOKKO SYSTEMS CO., LTD.
Tohoken System Engineering Corp. / Meisei Correspondence CO.,LTD. / Nissin Tsuukou Co.,ltd.
DAIMEI NETWORK 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
Toei Electric Telecommunication Co.,Ltd. / Tokaikoei Inc. / Miyakokensetsu Corporation
NIPPON Sangyo Corporation / NIPPON TOYOCOM Co.,Ltd
DAIMEI SLK (PRIVATE) LIMITED (Sri Lanka)

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 MIRAIT Groupoutlined at the beginning of this report explains
initiatives to enhance the capital that supports
our businesses. In the next section, we include
information about the progress of ESG
management addressed in the new mid-term
management plan by each priority theme. We
also work to provide a concise yetcomprehensive report about information that
includes the management structure as well as
the financial and non-financial performance
which the organization is striving to strengthen.

Head office
5-6-36, Toyosu, Koto-ku, Tokyo 135-8111, Japan
Representative
SUZUKI Masatoshi, President and Chief Executive Officer
Capital7 billion yen
Stock Listing
1st Section of Tokyo Stock Exchange(Security code: 1417)
Total outstanding shares
108,325,329
Ratings
Rating and Investment Information, Inc. (R&I) AJapan Credit Rating Agency, Ltd. (JCR): A▶ 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
Ground Create Co., Ltd. / KATAKURA CONSTRUCTION Co., Ltd.
MIRAIT Information Systems Co., Ltd / ACTIS Corporation / CREiST Inc. / Fucom Corp.
Kinki Denki Corp. / MIRAIT Technologies Australia Pty. Limited (Australia)
MIRAIT Technologies Myanmar Co., Ltd. (Myanmar) / MIRAIT PHILIPPINES INC. (Philippines)▶ TTK Co., Ltd.

End of fiscal year
March 31
Number of employees (consolidated)
12,704 (as of September 30, 2019)*
Number of consolidated subsidiaries
75 (as of November 1, 2019)*Simple tabulation of all companies

Toubu Denwakoji Corporation / Hokubu Densetsu Corporation / Morioka Denwakoji Corporation
Hakkou Tsushinkensetsu Corporation / Sensyu Tsushinkensetsu Corporation
Yamagata Tsushinkoji Corporation / Fukushima Denwakoji Corporation / TTK Techno Co.,Ltd. /Tsukada Electrical Construction Co., Ltd▶ SOLCOM Co.,Ltd.

SOLCOMMEISTER Co.,Ltd. / Yuwakogyo Corporation / Seikenkogyo Co.,Ltd.
Solcom Business Survice Corporation / Chugokutsushinshizai Corporation / Dentsushizai Corporation

Our Businesses
and Direction

03

Our Businesses

06

Value Creation and Performance07

Unfolding the Mid-term Management Plan

09

Building and Maintaining a Comfortable Society
Building, Maintaining and Renewing Social Infrastructure

13

Smart Life Evolution

17

Making Cities Disaster Resistant18

BoundaryIn this report, we report on the MIRAIT Group asa whole. Please note that numerical data andsome of the information published in this reportare 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.

Building and Maintaining Safeand Reliable Technical Capabilities
Pursuing Quality

19

Occupational Safety and Health

20

Reporting Period

Work-style Reforms

21

FY 2018(April 1, 2018 to March 31, 2019)

ESG-based
Management

Diversity

22

Note: This report contains some data outside theabove period so far as it complies with theeditorial policy.

Human Resource Development

23

Guidelines Referenced

Building and Maintaining the Trust of SocietyInternational Integrated Reporting Framework
issued by the International Integrated Reporting
CouncilProtecting the Environment

25

Social Responsibilities in the Supply Chain

27

Helping Local Communities

28

Corporate Governance and Internal Control

29

Financial and Non-Financial Data

35

Status of Shareholders

38

Date of Publication▶ Shikokutsuken Co., Ltd.

President’s Message

January 2020

Ochidenki Corporation
Inquiries▶ Lantrovision (S) Ltd. (Singapore)

Lantro (S) Pte Ltd / Lantro (Malaysia) Sdn Bhd / Lantro (HK) Limited
VRnet (S) Pte Ltd / Lantro (Taiwan) Ltd / Lantrovision Korea Co. Ltd
Lantro (Shanghai) Co. Ltd / Hangzhou Lantro Co. Ltd / Appsilan Asia Pte Ltd
Infilan Pte Ltd / Lantro Phils. Inc. / Lantro (Penang) Sdn Bhd
ADNOS SOLUTIEN Pte Ltd / Lantro Myanmar Co. Ltd
Lantro Technologies India Private Limited
Innovative Energy Systems & Technology Pte. Ltd. / Altro Solutions Pte Ltd
Lantrovision Inc. / Lantro (Thailand) Co. Ltd / Lantro (Vietnam) Co. Ltd
Lantro (Cambodia) Co. LtdCSR Office
MIRAIT Holdings Corporation
5-6-36, Toyosu, Koto-ku, Tokyo, Japan
135-8111
Phone: 81-3-6807-3120

Related Information on our website

Management
Structure
Performance andCorporate Data

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

Corporate Information
https://www.mirait.co.jp/en/company/
Business Information
https://www.mirait.co.jp/en/service/
IR Information
https://ir.mirait.co.jp/en/

Including consolidated subsidiaries and overseas subsidiaries (as of November 1, 2019)01

Corporate Report 2019

Corporate Report 201902

President’s Message

We support smart society as a comprehensive
engineering and services firm centered upon
greater regional coverage as well as the integrationof business fields and technology arounda new mid-term management plan.
Building Infrastructure for a Future Smart Society

SUZUKI Masatoshi
MIRAIT Holdings Corporation
President and Chief Executive Officer

03

Corporate Report 2019

I pay close attention to the three “Ds” - digitalization, decarbonizationand demographic change – as the global megatrends. Japan is currently
standing in an era where it faces aging society with its birthrate
declining faster than most countries in the world, while social
infrastructure of the next stage is to be built using smart technologies.
The dawn of commercialization for 5th generation mobile
communications systems (5G) is encouraging the provision of newservices and has brought the IoT era into full swing. At the same time,
much of the social infrastructure that was developed in the post-war
period has aged and is in need of renewal. There is a demand of not justsimply renewing this infrastructure, but of redeveloping it with a future
vision in mind. A new form of city and society is being sought with 2020
as a milestone, when the Tokyo Olympics and Paralympics will be held.
Furthermore, grave outlooks over climate change are acceleratingworldwide decarbonization trends and companies are expected tocontribute through their businesses.
At the MIRAIT Group, we focus on engineering that gives specificshape to the various conceptions as our primary business founded in ICT
technology. While Japan has almost fully implemented an optical fiber
network throughout the country, the telecommunications infrastructure
faces the challenge of massive energy consumption. The utilization of
new technology such as the high-capacity network, renewable energy,
5G, IoT, AI, and cloud computing facilitates infrastructure of a smart
society. In anticipation of the ever-changing needs of society, I hope wecan contribute in fields related to smart cities and smart life evolution as
professionals in engineering.
The new MIRAIT Group mid-term management plan announced in
May 2019 has brought forward greater regional coverage as well as theintegration of business fields and technology as approaches to foster
new business opportunities. We work to overcome the challenges facedby customers and revitalize local communities from a point of view that
goes beyond the conventional business, service and technology
frameworks. The MIRAIT Group will also live up to expectations for thedevelopment of smart social infrastructure in the future.

Furthering Challenges to Grasp New Business
Opportunities
We have been amassing various technologies through our businesses
including telecommunications, civil engineering, construction; electrical,
power, switching; wireless and broadcasting. In addition to these fields
that we have cultivated technologies in, we are recently building on
ICT-related technologies. We are also working on projects in regions
where further future growth is expected according to the needs ofsociety. The MIRAIT Group is furthering challenges to grasp new
business opportunities in aging infrastructure countermeasures, data
center operations, maintenance and other stock businesses as well as
new business opportunities in environmental, energy and many otherglobal business fields. However, the specific content has been changing
extremely quickly due to the diversification of social needs.
For example, the construction of solar power generation facilities which
has been a primary business in the energy field in recent years is currently
seeing requirements expand further with new frameworks in light of thefight against climate change and trends of decarbonization, such as the useof renewable energy today. Needs for storage batteries and emergency
power sources are also increasing. We strive to accumulate the necessary
technological capabilities to participate in the construction, operation andmaintenance of these new efforts. In the future, the technology we havecultivated primarily in the Kanto and Kansai areas up until now will help us
take on challenges to expand to even broader areas.
The approach that is indispensable as we challenge to grasp new
business opportunities is to first try engaging in new jobs while returning
to the drawing board when confronted by problems. A little courage totake the first step builds up in the organization each day to alleviate fearand promote business.

Improving Comprehensive Corporate Capabilities byExpanding the Group
The MIRAIT Group has aimed for further value creation and sustainablegrowth as a comprehensive engineering and services firm up until now,which has expanded and strengthened our business domains. The

Corporate Report 201904

President’s Message

MIRAIT Group gained three new business companies through a
successive management integration of TTK Co., Ltd. (Head Office: SendaiCity) on October 1, 2018, SOLCOM Co., Ltd. (Head Office: Hiroshima City)
on January 1, 2019 and Shikokutsuken Co., Ltd. (Head Office: Imabari
City). The management integration of these three companies drove thescale of sales for the MIRAIT Group by approximately 30% year-on-year
in fiscal 2018. However, I am more focused on improving ourcomprehensive corporate capabilities through this Group expansion. By
incorporating the history and track record of these three enterprises
known as the local powerhouses in communications construction, thevarious capital gained by the MIRAIT Group from the intangible social
capital to relational capital, including the human capital cultivated overmany years in each area and the trust earned from customers and local
communities, broadens Group corporate capabilities.
The MIRAIT Group has always worked to build a national service systemthroughout Japan. By establishing Group companies in Tohoku, Chugoku
and Shikoku that cooperate closely, we further agile, autonomous
management that puts the customer first, while at the same time being
able to expand the experience, expertise and technology gained through all
the previous work in the Kanto and Kansai areas. We will aim to improve
our comprehensive corporate capabilities through these efforts.

Transforming Work Styles and Views on WorkAs the number of working population in Japan began to decline, how we
can actively reform work styles and create workplaces attractive foryoung people would gravely impact the sustainability of our businesses.
I believe that we need to tackle these challenges from the perspectiveof changing the structure of how we work. Building an organization
where each employee’s quality is respected while the collective
efficiency is heightened is a major challenge in both the short term as
well as the medium and long term, while what we do and what each of
us do changes over time.
We also have to invest more efforts in raising awareness of themystique of engineering that gives concrete shapes to various ideas andconceptions. The job of creating social infrastructure with our own
hands will surely help bring about genuine motivation. While thetraditional image of “construction” still persists in people’s minds, weare eager to create a future image of engineering through cooperation in
the entire industry. This is underpinned by the unified reforms to the Act
on Promoting Quality Assurance in Public Works, Construction Business
Act, and the Act for Promoting Proper Tendering and Contracting for
Public Work that encourage measures, such as work-style reforms,
enhanced productivity and local contributions in times of disasters.

Business Performance and Shareholder Returns
The net sales and operating income in fiscal 2018 (the year ended March
31, 2019) were, impacted by the management integration at 375.9 billion
yen (up 63.0 billion yen year-on-year) and 20.6 billion yen (up 3.9 billion
yen year-on-year), which are both higher than ever before. The operating

05
05

Corporate
Corporate
ReportReport20192019

Our Business

Building and Maintaining
income ratio was 5.5% (up 0.2 points). Orders received also increased 66.3
billion yen year-on-year to 392.6 billion yen. Results such as the total
amount of extraordinary profit due to the management integration also
markedly increased the net income to 25.7 billion yen (up 14.2 billion yen
year-on-year) with an ROE of 15.4% (up 6.6 points). In determining
shareholder returns, it is our policy to make a judgment from broadconsiderations including paying dividends consistently, keeping to thegeneral target of total shareholder returns target of more than 30%, andconsidering such factors as our business results and cash position, among
other factors. In fiscal 2018, the year-end dividend was increased by 5 yen
from the previous fiscal year, for a total of 40 yen in an annual dividend
per share (interim: 20 yen; year-end: 20 yen). In fiscal 2019, we forecast
net sales of 430 billion yen and operating income of 21.5 billion yen. A
major factor for the significant increase in net sales is a result of including
the annual business performance from three new participating companies.
As for shareholder returns, we expect an ongoing year-end dividend of 40
yen per share to be sustained. We are also acquiring a total of 10.4 billion
yen of treasure stock (as of September 30, 2019).

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

NTT Operations
The MIRAIT Group builds, maintains and operates the NTT Group’s
fixed-line communication facilities throughout every region in
Japan for both NTT East and NTT West. We are currently involvedin multiple construction projects to advance the Hikari
Collaboration Model as the optical fiber networks driven by the
NTT Group become even more prevalent. When disaster strikes,
communication networks.

Multicarrier
The MIRAIT Group builds, maintains and operates mobile

Nurturing People and Contributing to the future as"Your Company"

Sales by Segment

our emergency repairs and reconstruction safeguard these26%
MIRAIT Group Sales

capacity of mobile networks. We are currently involved in theconstruction to advance 4G networks while participating in trials

I often use the phrase “Your Company” to communicate the corporate
posture which the MIRAIT Group should keep to “a company managed
for you”. We believe that becoming a company that contributes to the
future through responding to social needs creates future job and opens a
new path. We will consider global trends and contribute in reaching theSDGs*1, global targets for realizing sustainable society, as an entire
group and also accurately respond to the risks and opportunities inbusiness from a wider perspective for strengthening ESG*2.
As society changes in the pursuit of its future form, our future andthe future of society overlap. Therefore, human resources who support
these efforts are vital to endeavor in new fields. We strengthen thehuman resource foundation by sharing the line-up of solutions at eachGroup company and bringing our experience from a broad track record inconstruction as well as our expert human resources. I hope to flexibly
work to build an environment that cultivates people, even by creating aplace for global human resources proficient in overseas businesses toactively participate in Japan.
The MIRAIT Group will take each and every step to grow withsociety. I ask for your all of your ongoing guidance and support.

34%

98.7 bil. yen

communications facilities to support the increasing speed and375.9

for 5G networks.
Our Group also builds and maintains fixed-line communications
facilities for communication carriers, conducts CATV, and builds
and maintains fixed-line and mobile communications facilities
overseas (Australia, Philippines, Myanmar, and Sri Lanka).

Environmental and Social Innovation

15%

128.3 bil. yenbil. yen(Fiscal 2018)56.3 bil. yen

25%
92.5 bil. yen

The MIRAIT Group builds, maintains and operates solar power
generation systems, EV charging stations and storage battery
systems to make new energy infrastructures more accessible. We
also undertake electrical and HVAC engineering works including
undergrounding of utility poles, wiring and cables as well as
installation of LED lamps, contributing to building next-generation
environmental and social infrastructures.

ICT Solutions
The MIRAIT Group provides high-quality solutions through ICT
technologies that address wide-ranging social and businesschallenges, such as introducing LAN and Wi-Fi, ensuring security,*1 Sustainable Development Goals (SDGs)
Adopted at the UN Sustainable Development Summit in September 2015
*2 ESG
Stands for Environment, Social and Governance. A concept of placing weight on the three factors when
considering corporate management and growth.

advancing building management and promoting operational
efficiency. We have begun building and operating data centers andusing drones to further expand the breadth of these solutions.

Corporate Report 201906

Value Creation and Performance

Capital Enhancement Initiatives
in the Drone Business

Organizational CapitalFoundation of Our Business

The MIRAIT Group opened two drone schools in 2017
The business operation system of the MIRAIT Group andwhere training is conducted according to the Japan UAS

partner companies is the foundation for business growth inIndustrial Development Association (JUIDA) course. As ofJapan and abroad.

March 2019, a total of 412 students from both inside of
the MIRAIT Group and from the general public quickly

The MIRAIT Group consciously utilize
its financial and non-financial
capitals in running its business
operations.
We strive to enhance non-financial
capital to heighten medium- tolong-term financial performance.

Major Capitals

Engineering Capital
We keep both the hardware andsoftware directly used for engineering ingood shape while regularly adopting thelatest versions.
Major Capitals• Construction equipment(aerial work platform vehicles, etc.)• Network/cloud service infrastructure• Internal information systems

The data is for fiscal 2018 (as of March 31, 2019)

emerged as JUIDA-certified drone pilots. Our schools are• Presence in each region and country• Business sites (sales, construction, and services)• Partner companies (smooth collaboration)• Networks with organizations and people related to businessat the top of 212 schools accredited by JUIDA and havebeen awarded the JUIDA SCHOOL AWARDS 2019 GOLD.
Our network of resources and partner companies have

Development Initiatives

also set up 42 sites with over 110 drone pilots throughout• Expansion and deepening of regional coverage• Strengthening of Group operation systems• Collaboration meetings and regional cooperation meetings withbusiness partners• CSR sourcing

Japan to expand the Wide Area Drone Piloting Service
whereby drone operations are outsourced to us. In
addition, we are providing drones and offering
maintenance services to put in place a service systemeasy for anyone to use, even if they do not have a drone or

Number of Group Companies

55

in Japan19

other equipment.
The drone business has infinite potential throughOverseascombining with a variety of sensors. The MIRAIT Group is

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 (for i-Construction)• Operational improvements through active adoption of RPA*2

Number of partner companies with Ongoing Business

Over

1,000

development in fields that include facility inspection,measurement, agriculture and disaster recovery.

* 1 System to link with leased data centers through underground cables

Sales Sites Lantrovision is Expanding Throughout Asia

* 2 Operational automation through robotics

13

Human Capitalusing alliances with other companies to further service

Countries and Regions

28

Cities

The size and quality of human capital is crucial inengineering. With this recognition in mind, the MIRAITIntellectual CapitalGroup works to cultivate its human capital that
supports the growth of business in multifaceted ways.
The technical capabilities of the MIRAIT Group are a factor
Major Capitals

affecting its market competitiveness that often remains• Engineers/skilled workers with a high level ofproblem-solving skills• Trusted worksite supervisors• Sales staff who nurture good relationships with customers

unseen. We invest our efforts in transforming tacit

Development Initiatives• Systematic training through a personnel training system• Bounty system for obtaining professional qualifications• Support for career advancement through an interview
program• Personnel rotation that encourages experience in diverse
businesses and organizational cultures• Securing and promoting active participation of diverse talents• Enhancement of engineering personnel (mid-career
employment)

Personnel with qualifications

Approx.

9,000(Up 3,600 from Previous Fiscal Year)The number of qualifications

Approx.

17,000(Up 6,000 from Previous Fiscal Year)

07

Corporate Report 2019

Mid-career Employees

103knowledge into explicit knowledge which can then be
shared and succeeded.

Social and Relationship Capital

Major Capitals• Telecommunications construction and other engineering expertise• Knowledge in specialized relevant fields• Research and development or processes and techniques of value
engineering• Quality control, occupational safety and health, environmental
conservation and other expertise

Development Initiatives• Operation of various management systems• Strengthening of construction management capabilities(Use and ongoing revisions of the Worksite Supervisor Handbook)• KAIZEN Suggestion Activity (reforms and development of articles
and methods via suggested improvements)• Adoption of the latest technology(Up 38 from Previous Fiscal Year)

The trusted relationships with our stakeholders are an“unseen foundation” of the MIRAIT Group’s businesses.
Major Capitals• The brand based on confidence and trust from customers• Long lasting relationships with telecommunications carriers• Collaboration with municipalities and government agencies• Support from local communities

Development Initiatives• A long and proven track record• Clarification of quality standards as well as confirmation andvalidation of quality in each operation• Disaster recovery response• Local contribution efforts/activities to promote communication withlocal communities

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

Approx.

41,000,000

Track Record of Building Communications
Facilities Worldwide by the MIRAIT Group

Over

100

Countries

Number of hotels and rooms for which“ee-TaB” Information Distribution Service
has been adopted

26

HotelsApprox.

Rooms

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

280

Sites of74

Generation Capacity of Solar Power Plants(Built by MIRAIT Group/Cumulative)

EV Charging Stations

18,379348

Approx.

(Up 1,585 from Previous Fiscal Year)(Up 87 MW from Previous Fiscal Year)

Number of KAIZEN suggestions

5,000

1,300

Companies

Stations

MW

Corporate Report 201908

Unfolding the Mid-term Management Plan

Unfolding the Mid-term Management Plan
The MIRAIT Group developed a new three-year mid-term management plan that began in fiscal 2019. It seizes on opportunities
brought by changes in the business environment and leverages the management integration executed in fiscal 2018.

Business Environment and Main Challenges
The business environment surrounding the
MIRAIT Group is at a turning point. In theinformation and telecommunications sector,
we are witnessing changes in the businessmodels of telecommunication carriers, which
are the Group’s main customers. In addition,
new services are expected to emerge withthe creation of fifth-generation mobile
telecommunication systems (5G). Moreover,the business environment for the MIRAITGroup is expected to continue to change
dramatically with the rise in demand for new
solutions using Wi-Fi, sensors, cloud andother technologies in light of the full-fledged
era of IoT, and the acceleration of therebuilding of social infrastructure createdduring Japan’s high-growth period.
Against this backdrop, the MIRAIT Group
must aggressively expand its business ingrowth areas (the “frontier domains”) such as
stock, environment/energy and global
businesses. The Group must also generatesynergies with the newly integrated
companies, implement measures to enhanceconstruction work capabilities, strengthen thecustomer base and improve profitability, andcontinue to promote profit-oriented business
operations.
Furthermore, in response to the aging
society and the issue of shortage of labor, the
MIRAIT Group must engage in further
initiatives to establish a comfortable and safe
working environment for all staff, including
those at subcontractors, in order to secure
human resources. The Group should also be
proactive in efforts to change workstyles,
such as by leveraging ICT.

New Mid-term Management PlanAs the business environment undergoes
significant changes, the Group believes it isnecessary to improve efficiency ofmanagement and further increase theproductivity of existing businesses byintegrating the management of the threecompanies, in addition to enhancing
corporate value and ensure sustained growth
as a “Comprehensive Engineering & Services
Company” by becoming more competitive inmany growth areas (frontier domains) such as
stock business, environment & energy, andglobal. To achieve this, the Group has

the ratio of sales made up by frontier domains
was 41% in fiscal 2018. This new plan aims
to expand this to 46% by fiscal 2021.

FY 2013

FY 2021 (plan)

29%

277.7

46%

bil. yen450■frontier domains■base domains

54%bil. yen

71%

ThemesOur goal is to become an enterprise with higher market competitiveness that supports a smart society as the businessenvironment changes through new services and other means made possible by the dawn of the 5G generation, evolution of IoT
and fusion of technologies.

Key
Initiatives
Business
Environment

established a three-year medium-term
management plan starting in FY2019, andaims to attain the targets therein. Moreover,

Generating new business opportunities• Support regional development by leveraging the expanded regional coverage achieved through management integration• Facing the challenge of new business opportunities transcending the conventional framework of business areas and technologies
Acceleration of transformation of business structure• Acceleration of transformation from carrier business to solution business• Promotion of transformation of quality in solution business (emphasis on profit)• Upcoming era of 5G and advanced mobile services• Development of new ICT technologies and IoT(cloud, use of drones, etc.)

Improvement of productivity and streamlining of business operation costs• Ensuring operation of construction work through stronger ties with partner companies• Sharing of systems and consolidation of common operations• Building of leading-edge/ advanced infrastructure in light of the 2020 Tokyo Olympics/
increase in inbound tourists.
• Progress in labor-saving and automation to resolve issue of shortage of labor

Strengthening of 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 and transformation of business• Increase in new energy-related facilities and social infrastructure

Promotion of ESG management and improvement of safety and quality• 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”
Capital policy• Maintaining a sound financial standing• Management conscious of capital cost
• Purchase of treasury stock aimed at realization of ROE of 8% or more

Tailwind for the MIRAIT Group

Main
Challenges(1) Expand new “frontier domains”• Improve profitability by adopting stringent standards to selectprofitable projects and by expanding into upstream businesses.
• Win more business with direct clients and cultivate new users.
• Establish an efficient work system and a nationwide networkwith the cooperation of subcontractors.

(2) Enhance management efficiency and improve
productivity of existing businesses• Improve profitability by smoothing workload and assessing cost
structures.
• Revisit group operations with subsidiaries and subcontractors by
eliminating administrative overlap and by reviewing the divisionof roles and responsibilities.

Management
Indicatorswith Targets(FY 2021 Targets)

Net sales450bil. yen

Operating income

27bil. yen

ROE

More than

8.0%(Operating income ratio 6.0%)• Streamlining operations by using systems and other operational
tools.

09

Corporate Report 2019

Corporate Report 201910

Unfolding the Mid-term Management Plan

Generating New Business Opportunities
The MIRAIT Group will utilize the greater
regional coverage brought by the management
integration with TTK Co., Ltd., SOLCOM
Co.,Ltd., and Shikokutsuken Co., Ltd. to provide
more rapid and comprehensive support fromsales and service perspectives. We will also
assist the revitalization of each local
community.
In addition, the MIRAIT Group willencourage flexible combination of technologies
by looking across business fields to identify
ones in use. Through such technological fusion,
we will help solve societal challenges ofdiverse magnitude.

Strengthening human capitalNTT
Priority
Infrastructure

Multicarrier

DisasterPrevention
HikariCollaboration

Civil
Engineering

WiFi
5G

RobotsExpanding Regional Coverage

LPWA

IoT

Combining business domains and technologies
AI
New Energy

GLOBALBIGDATA

EV/Rechageable
Batteries

Old
Infrastructure

Support regional development

DronesData Center

Environmental & Social

Sensors

Software

ICT

Help resolve social issues

Aim to be a company that contributes to the “smart society”

The MIRAIT Group aims to become an attractive
and worthwhile enterprise to work where eachand every employee can find their own
motivation and reach their full potential. We
also maximize the organizational capabilities of
the team while providing an invigorating
workplace for both the body and mind in which
everyone can see themselves grow.
We will also strengthen the human capitalthat realizes a highly productive, venturous,
and attractive company through enhancing
work-life balance, promoting diversity, andfurthering the shift in the organizational culture
and cost structure.

Comprehensive Engineering & Services Firm
A Highly-Production
Company

A Venturous
Company

An Attractive
Company

Transform Organizational and Cost Structure
Enhance Productivity and Strengthen
Cost Competitiveness

Further Work-Life Balance

Promote Diversity

Enhance Employee Skills
and Promote HealthOrganization Where Diverse Talents
Can Perform

Expansion of Business Areas Utilizing Technologies (as of March 31, 2019)
Resources (Technologies)

Current Business UsageNTT

Areas to Expand Into
Engineering area

Promoting ESG in Management

Expanded areas

Qualified personnel (total qualifications)
Construction

7,850 (12,400 qualifications)

Software1,150 (4,600 qualifications)

Total

9,000 (17,000 qualifications)

Telecommunications/civil engineering
Power /switching

Elimination of poles

Aging infrastructure(For Olympics)(structural analysis and sensors)

Civil engineering

Civil engineering/construction
Wireless

Smart Cities

EV chargers
Multicarrier<Details>
Telecommunications, civil engineeringand constractions
Installation technicians (A1/DD general)
Construction managing engineers
Architect

625
365
15

Civil engineering/constractions
Power

Civil engineering/constractions
Power

Next-gen Mobility(ITS/smart cars)

Power

Wireless

Wi-Fi creation

Transmission/switching(For Olympics)

LAN/WAN

LAN/WAN70
365
405

ICT Solution
Sensor networks
Wireless
LAN/WAN

Wireless and broadcasting

SoftwareEnvironmental andSocial Innovation

ICT-related technologies
Cisco-certified CCIE
Information technology engineers
Drone

Telecommunications/civil engineering
Wireless/br

Servers

Technical radio operators for on-the-ground services
95
Special radio operators for on-the-ground services 1,060
CATV engineers
30

Priority Themes and Issues: “Building and Maintaining a Bridge to the Future”
Priority Issues

Building and Maintaining
a Comfortable Society- Business Operations -• Construction/maintenance/reform of social infrastructure• Smart life evolution• Disaster resistant town planning

Building and Maintaining Safe,
Reliable Technical Capabilities- Safety, Quality and Human Resources -• Reinforcing technical development capabilities and engineering strength /employee training• Continuous improvement of quality and safety• Diversity promotion• Work-style reforms = work-life balance

Building and Maintaining the Trust of Society- Environmental Protection,
Local Communities and Governance -• Corporate governance• Environmental efforts in business operations• Issues of labor, safety, environment and human rights in the supply chain• Revitalization of local communities

Relevant SDGs

Servers

Wireless

LAN/WAN

Drone
Telecommunications

Wireless

Cloud/DCPower /switching
LAN/WAN

Solutions Leveraging IoT and 5G
Telecommunications

Solar Panels
Electricity

Wireless

LAN/WANElectricity
Broadcasting

Priority Themes
Wi-Fi solution

Servers
55
1,525
75

will contribute to the Sustainable Development
Goals (SDGs)*2 through all our businessactivities. We will also work to identify risks
and opportunities for our business from awider perspective and to effectively respond tothem, strengthening our ESG.

SoftwareWireless

Licensed electrical engineers
Electrical construction managing engineersType I electrical workers

social demands and expectations is also
fundamental to the MIRAIT GROUP.
In addition, we addressed the concept of“ESG*1 management” focused on the impact
on medium- to long-term financial affairs
together with the announcement of the
mid-term management plan in May 2019. We

Wireless

Wireless

Electrical, power and switching

The MIRAIT Group has promoted Corporate
Social Responsibility (CSR) activities based on
the MIRAIT Way, which is made up of the BasicManagement Policy, Conduct Guidelines, and
The Corporate Ethics Charter. We will win
long-term trust from stakeholders by continuallyengaging in business activities that respond to

Electricity
Servers

Environment/Energy
Electricity

LAN/WAN

Servers*1 ESG: Stands for Environment, Social and Governance. A concept of placing weight on the three factors when considering corporate management and growth.
*2 Sustainable Development Goals (SDGs): Adopted at the UN Sustainable Development Summit in September 2015

11

Corporate Report 2019

Corporate Report 201912

Building and Maintaining a Comfortable Society

Building, Maintaining andRenewing Social Infrastructure

Changes in Mobile Communication Systems(bps)

The MIRAIT Group builds, maintains and renews social infrastructure across a wide range of fields from telecommunications
environments (fixed line and mobile) to water, sewage, electric and lighting equipment, roadway equipment, solar power
generation systems, battery storage systems, and EV charging stations. We envision and realize each ideal of society
tomorrow while supporting the daily life expected of society today. Our Group strives to contribute to the development ofeach region by leveraging deeper local coverage provided by the three-company management integration.

5th Generation
High-definition
(5G)
Video
4th Generation(LTE-A, etc.)
Video

10G
1G
100M
Static Images
PacketCommunication

10M

Advancing Telecommunications Environments
Telecommunications environments are truly
critical social infrastructure as every activity insociety are increasingly dependent on
networks. Their functionality and reliability
have extensive impacts. The MIRAIT Group has
kept on bearing the responsibility ofmaintaining high-quality telecommunications
environments in Japan, Asia and Oceania.
We have built and are maintaining andoperating the NTT Group’s fixed line
communication facilities in the entire area of
eastern and western Japan. Our involvement
has also played a major role in laying opticalfiber networks all over Japan. In addition, the
MIRAIT Group handles the building,maintenance and operation of mobile
communications facilities throughout Japan.
Through carrier aggregation*1, MIMO*2 andother techniques, we are not only advancing
the mainstream 4th generation (4G) systems
but also working to expand the frequency band.
The MIRAIT Group, in preparation for the
next stage, has been participating in trials for
5th generation (5G) systems for which practicalimplementation is scheduled by 2020. 5Gfeatures ultra high-speed communication (up to
10 GBps, 100 times the current speed) andsimultaneous connection of multiple terminals
in addition to ultra-low delay (minimal timelag). This next-generation network is certain to
drastically revolutionize industry and daily life
as the foundation of the IoT era, whichconnects all things on the Internet. The total
capital investment from the four mobile
communications carriers in Japan (NTTDOCOMO, KDDI, Softbank and Rakuten
Mobile) between 2019 to 2024 is forecast to

13

Corporate Report 2019

involved in laying an optical fiber network in all
four countries. In Myanmar, the MIRAIT Groupis building the backbone lines for mobile
communications as a “main artery” of thecountry’s infrastructure.

reach approximately 1.6 trillion yen.
Overseas, we have utilized our experienceand technology accumulated in Japan to build
telecommunications infrastructure in morethan 100 countries up until now. Our Group isalso currently in charge of building andmaintaining fixed-line and mobile
communications facilities in Australia,
Philippines, Myanmar and Sri Lanka. We are*1 Carrier aggregation: Technology to combine and handle singles ofmultiple frequency bands.

1M

Audio

100k

1st Generation(Analog)

3.9 Generation(LTE)

3rd Generation

2nd Generation(Digital)

Evolves Each Decade

10k

1980

1990

2000

2010

2020 (Year)

Source: Created internally based on information published by the Ministry of Internal Affairs and Communications*2 MIMO: Multiple-Input and Multiple-Output technology to install
multiple transmission and receiving antennas to segment and senddata simultaneously.

Keeping Telecommunications Infrastructure in good shape
Medical Treatments

Wireless Society in 2020
(Prepared based on the initiatives of the Ministry of Internal Affairs
and Communications (MIC) to realize the fifth-generation mobile
communications system (5G) in 2020)

Shopping

Telesurgery using high-resolution
video even while traveling, etc.

Store announcements according toSportsand Entertainment

Use of self-driving taxis wheneverdata, automated tracking carts,

Enjoyment of amazing sports events

and wherever one wishes, even in

payments simply by passing throughand other ultra-reality anywhere

regions where public transport isgates, and customized information,

through virtual reality technology

difficult to access

Construction
What construction workers do

Livestock and agriculturalchanged by high-precision

management from home via

measurements by drones, remoteagricultural sensors, feed robots,and automated operation ofsprinkler and fertilization drones, etc.

construction equipment, etc.

Disaster Prevention
and Mitigation
Disaster information including optimal
evacuation routes swiftly available
through high-precision video sensors
installed all over the city

discovered, carrying it out once approved. We
also work to drive inspection quality andoperational efficiency by using an automatedtool for judging inspection results by means ofdrones and image analysis technologies.
We also take on operation of fixed-line
facilities. NTT West commissions us withhandling the on-site customer maintenance*3of office buildings in western Japan. The
three-company management integration
helped us expand our on-site maintenancearea throughout fiscal 2018 and fiscal 2019.
*3 On-site maintenance: Maintenance of lines and equipment housedin customers’ homes and buildings

Rural Living

etc.

Agriculture,
Forestry and Fisheries

Maintaining existing telecommunications
infrastructure in good conditions is a vital
mission of the MIRAIT Group. For fixed lines,
we conduct area-based and daily inspection on
suspension wires, utility poles, conduit lines
and manholes, and propose equipment
renewal to customers when any issue isEnhancing the Network Service Environment
The MIRAIT Group is in the process of paving
the way to allowing various organizations andindividuals to effectively use
telecommunications infrastructure in eachregion.
We have been preparing service
environments to accommodate major needs of
Wi-Fi (wireless network) from foreign tourists
at hotels, commercial complexes and stadiums(sports arenas) in addition to conventional
places such as subways, convenience stores,
and educational and public facilities. The
MIRAIT Group will provide Stadium Wi-Fi forthe 2020 Tokyo Olympics and Paralympics. Our
system installs access points with a smaller

coverage area than normal ones in high density
to secure smooth internet use even under hightraffic. Stadium Wi-Fi was first installed at the
MetLife Dome, which is home to the Saitama
Seibu Lions, before adoption at otherlarge-scale arenas in many areas of Japan. In
addition to providing Wi-Fi access, the MIRAITGroup also takes on such roles as ensuring
network security and installing surveillancesystems to prevent crimes.
Going beyond wireless networks, we installand maintain wired LANs which continue to bevital telecommunications infrastructure offacilities, in Japan and abroad. The MIRAITGroup has been incorporating ICTs into thefacilities which will be used for the Tokyo
Olympics and Paralympics, on the basis of the
LAN environment.
We also develop and operate data centerswhich is a key infrastructure that supports
cloud services.

Corporate Report 201914

Building and Maintaining a Comfortable Society

Building a Wide Range of Core Infrastructure
Social infrastructure for which The MIRAITGroup works goes beyond
telecommunications. We renew and develop
such core infrastructure with a long history as
water supply and sewerage systems, electricand lightning equipment, and roadway
equipment, with latest technologies. For
roadway equipment with growing demands,
our scope of work has widened to include
installation and construction of street LEDsserving energy savings and crime prevention(for municipalities), installation of speed guidelights for preventing accidents, renewal oflighting equipment, and construction of ETC
stations.
The MIRAIT Group also takes on the vitalrole of building, operating and maintaining

new energy infrastructure (solar power
generation systems, battery storage systems,
EV charging stations) in response to changing
social needs. We completed construction workof mega-solar power stations (30 MW
generation capacity in total) at seven locations
in fiscal 2018 and construction is underway at
12 locations in Japan (195 MW generation
capacity in total) as of the end of this fiscal
year. Operation and Maintenance (O&M)
services to ensure optimal efficiency of
existing solar power generation systems havegrown to encompass 15 plants as of the end of
this fiscal year. We also have a plan forproviding one-stop services, from planning tooperation and maintenance, for EV chargers.
We have installed EV chargers at roughly 1,300

stations, with the shortage of charging stations
on highways and growing business needs topromote renewable energy as the backdrop.
The MIRAIT Group is also participating in
the DOCOMO 5G Open Partner Programorganized by NTT DOCOMO for disseminating
5G. Since its inception in February 2018, thisprogram has provided information about 5G
technologies and specifications to partnercompanies and associations and venues for 5G
partnership workshops where partners
exchange ideas. By joining this program, we
have been able to work on development andtesting of services employing 5G in
anticipation of 2020; we are now developing
construction solutions that utilize 3D images
for telecommunications.

Exterior View of the 1st Osaka Data Center

Starting Services at the 1st Osaka
Data Center
The demand on data centers is growing
with cloud computing and cloud services
becoming widespread, business continuity
plans being developed, and energy
consumption being revisited. The MIRAITTechnologies Corporation has leveraged its
expertise in the telecommunications
engineering business to build, maintainand operate facilities and networks of data
centers since 2011.
We went on to construct our own data
center since October 2016, which started its
services on June 1, 2018. This “1st Osaka
Data Center” is the largest one in Osaka
City. It provides cutting-edge facility and its
operation with superior cost performance,
allowing flexible changes to various
equipment and operation specifications; inshort, it offers next-generation data center
services of “high quality” at “low cost” with“flexibility”.
By directly connecting with the Internet
exchange point in the Osaka Dojima

15

Corporate Report 2019

district, a network HUB of the Kansai area,
using optical fibers, the data center
provides carrier-free network connection
with high-speed, high capacity, highquality and reliability equal to that of the
Osaka Dojima district.
The equipment adopted for the data
center has leading power efficiency(PUE1.4 as the design value) in Japan andhas specifications against various
disasters. We also provide a comfortable
work environment from permanentcustomer (user company) stations andparking lots to napping and showering
rooms as well as lounges.

concluding a service contract with a foreign
provider as we negotiate over
specifications, drawing up operation rules
for which we launched a structure wereinvaluable learning opportunities for ourmembers involved. I believe this will
cultivate new business opportunities for the
MIRAIT Group, such as construction andoperation of data centers owned by clientorganizations. We will fulfill our roles andresponsibilities with even more focused
efforts as we draw on the experiences andskills gained through this project.

GOKOU Yasunori
Data Center Business Division, Alliance Promotion Unit
MIRAIT Technologies Corporation

Cultivating New Business via theConstruction and Operation of
Data Centers
Data centers hold massive power and air
conditioning systems to safely and stably
run tens of thousands of servers entrusted
from client users, for which high quality is
demanded. All the works for 1st Osaka Data
Center including designing and construction,

Participating in the DOCOMO Open House
The MIRAIT Corporation participated as an exhibitor in the DOCOMO Open House 2018 held by NTT DOCOMO (December 6th and 7th, 2018 at Tokyo
Big Site). MIRAIT set up a booth under the theme of future telecommunications construction in the section “5G Experience”, where visitors can try suchapplications as remote operation of robots and construction machines, remote medical diagnosis, remote ultra-reality concerts, and next generation
mobility. These were pilot cases worked on by NTT DOCOMO and its collaboration partners to put 5G services in practice.
Our exhibition was titled A New Generation of Construction through 3D × 5G. The integration of 3D scanners, drones and high-speed, high-capacity
5G communication aims to remotely acquire and manage 3D data of buildings in real time. Such approaches as sharing images of facility installations
with owners, meticulously grasping the position and size of equipment installation, identifying hazards, and detecting damaged or degraded parts
caused by aging or natural disasters, allow users to use the solution effectively at each step of consulting, design, installation and maintenance on
construction sites of telecommunication facilities. Our booth
presented service images, through scanning experience ofusing a handy scanner, of “agile construction solutions in a 5Gera” proposed by MIRAIT.
This solution serves Goal 9: Build Resilient Infrastructure,promote inclusive and sustainable industrialization and foster
innovation and Goal 11: Make cities and human settlements
inclusive, safe, resilient and sustainable in the Sustainable
Development Goals (SDGs).

Project Member

Corporate Report 201916

Building and Maintaining a Comfortable Society

Smart Life Evolution

Making Cities Disaster Resistant

The MIRAIT Group is developing and providing various solutions linked to the realization of smart cities and smart lives, withthe social infrastructure it builds and operates as a foundation. We are making special efforts in utilizing IoT technology andare developing solutions using LPWA*1 and services using drones as “moving sensors”.

The MIRAIT Group works through a multifaceted approach for making cities disaster-resistant. This not only involves theconstruction and management of telecommunications infrastructure able to withstand natural disasters but also measuresagainst aging infrastructure and undergrounding of utility poles in cities. We also strive for rapid recovery response in timesof large-scale disasters and further the strength of Group operations for smooth emergency response while conducting
regular disaster prevention drills in preparation.

Making Society Smarter with IoT Technology

Building Telecommunications Infrastructure Able to Endure Natural Disasters

The MIRAIT Group strives to broaden its
business domains by making use of its
technologies toward becoming a“comprehensive engineering and servicesfirm”. These new fields such as aging
infrastructure, next-generation mobility, andenvironmentally sound energy, all of whichmake society smarter, lead to smart cities andsmart lives.
One of the key technologies making society
smarter is IoT (Internet of Things) whichconnects all things to the Internet around theworld. Considering the growing social needs
for IoT, the MIRAIT Group works to develop
and utilize communication technology which
supports large quantities of data transmission

among devices with wide area coverage, at
low power consumption, in efficient ways, andfor low costs. With particular attention to
LPWA*1, we conduct field testing of solutions
to check the status of usage and aging ofequipment and devices as well as location ofmobile bodies, validating their usefulness.
One primary example is the automaticmetering by smart water meters, which
MIRAIT Technologies Corporation has beenworking on since 2015. To advance efficientfacility operation and handing down oftechnical expertise in the water business, the
MIRAIT Group worked with NTT West and The
Kobe City Water Supply Service to conduct
field trials for practical application of

automated metering through the use of LPWA.
Drones, applied in a widening range offields, can also be used as IoT devices by
equipping sensors. The MIRAIT Technologies
Corporation proposes solutions to challenges
faced in a broad range of fields in anticipationof drones serving as “mobile sensors”. Today,
we are providing services in fields that include
facility inspections for telecommunications
carriers, progress management of civilengineering sites, rice growth surveys, androof inspections of buildings.
*1 Low Power, Wide Area (LPWA): Technology to realize low power,
long distance communication.

Smart Community Building Project Using IoT (Namie, Fukushima)
The MIRAIT Corporation has beencommissioned to build solar power plants
for public housing for disaster victims in
Namie Town, Fukushima Prefecture, throughthe Project for Promoting the Adoption of

A telecommunications network functioning
normally is essential for the daily life of citizens
and industrial activities. The MIRAIT Group has
also been consistently striving to build andoperate telecommunications infrastructure able
to stand up against storms and floods,

earthquakes and other natural disasters.
In recent years, we have been working tobury electrical cables to prevent utility poles
from toppling in earthquakes or typhoons. We
lay the cables underground by digging routes
as ducts to accommodate electrical cables

while keeping safe water supply and seweragetubes and gas tubes. The project in Ponto
Town, Kyoto City, completed in fiscal 2018,
adopted multiple new construction methods in
combination because of the narrow roads andmany tourists in the area.

Minimizing the Impact of Disasters and Accidents
Recovery response when a disaster or accident
strikes is a vital role for the MIRAIT Group as a
guardian of the communication and network
environments.
In the flooding that hit west Japan in July
2018, we took action to recover communicationbase station facilities afflicted by the disaster.
Recovery work was extremely difficult due tobroadness and severity of the damages, but wemanaged to quickly restore customer services
without incidents. In particular, we completed
vast amounts of work in a short period of time
for NTT DOCOMO and KDDI Engineering thatrequested urgent recovery construction,
maintenance and refueling on a 24-hours-a-day
basis, and inspection, immediately after being
hit by the flooding. This was made possible by

Recovery of Communications Facility After Damage to the Bridge
Connecting Kansai International Airport (Typhoon Jebi)

Recovery of the Aerial Communications Facility Stopped Due toFallen Trees (Typhoon Jebi)

broad support from each MIRAIT branch officein west Japan.
When Typhoon Jebi struck Japan fiercely in
September 2018, the bridge connecting the
Kansai International Airport was devastated
due to the impact of a tanker, which severed
communication cables of NTT West by themisaligned bridge girder. The MIRAITTechnologies Corporation successfullycompleted the difficult task of reconnecting thecables that were severed within 55 hours fromthe discovery of the loss of communication tomeet the schedule to resume operations ofdomestic flights.

Smart Communities in the Reconstruction ofNamie. This project adopts LoRaWAN as
the IoT technologies developed in part by

TTK Net Fencing Certified as Miyagi Sugure Mono

MIRAIT for the communication method ofsmart metering in each household for Home
Energy Management Systems (HEMS),
which is part of this project. LoRaWAN is

The TTK Belt-Type Second Cut Net Fencing developed by TTK Co., Ltd. offers superior durability
Left: Townscape of a Smart Community

Right: LoRaWAN Gateway Poleone of the LPWA network standards for wireless communication technology that covers a wide area with minimal power consumption.

17

and weather resistance by combining resin belts in a grid pattern. This fencing is primarily
intended for anti-wind, anti-snow and anti-sand measures. Loads for workers were reduced by

The MIRAIT Corporation has installed solar power plants (3 kw) and lithium-ion storage batteries (11 kWh), and HEMS in each of 85 homes and one

its reduced weight through the use of resin nets and aluminum fixings. Its landscape-friendly

new assembly hall wing. The intelligible display of power generation and consumption promotes energy-saving actions. Each household sends data on

design and rich variations are also advantages. At the 11th Miyagi Sugure Mono certification

its power consumption and solar power generation to Namie Town Hall via the assembly hall to deliver self-sustaining power using renewable energy

ceremony, it was certified as an official product for its safety, landscape affinity, and cost

and to put Community Energy Management System (CEMS) into practice in the future.

performance.

Corporate Report 2019

Belt-type Second Cut Net Fencing

Corporate Report 201918

Building and Maintaining Safe and Reliable Technical Capabilities

Pursuing Quality

Occupational Safety and Health

We work to meet customers’ expectations and trust with high-quality service and solutions by devising mechanisms,
developing people who run them, and creating environments where people can exert their potentials.

We introduce and continually improve safety measures with safety as the top priority in operations as our basic policy. The
MIRAIT Group also supports employees in maintaining both physical and mental health.

Quality Management

Occupational Safety and Health Management

The MIRAIT Group has configured and operates
a quality management system certified underthe ISO 9001, which is an important element of
the integrated management system.
Our Quality Policy, the foundation of ourquality management system, has three pillars:
rapid responses to legal regulations andcustomer demands; raising customer
satisfaction by improving the quality of
products and services as well as construction(while making operations efficient); andreducing quality risks. Our internal regulations
clarify concrete processes, procedures andcriterion. We have also clarified the quality

standards to be complied with for both internal
operations and for procurement from ourpartner companies.
We confirm and verify the quality of each of
our works every time. We are also pursuingmore accurate and efficient verification
processes by using such tools as mobile
terminals.
Every fiscal year, each group company setstargets (number of facility accidents, number ofdetected issues in inspection, customer
satisfaction score, etc.) depending on its
operations. Results of the progress review
inform planning for subsequent fiscal years.

Sharing Safety Awareness
Authorization of workers for highelevation work safety
For engineers to work at high elevations safely
and securely, the “Authorization of workers forhigh elevation work safety" has been in place
for both access and network systems.
Number of new candidates for authorization of workers
for high elevation work safety (fiscal 2018)

Access system

107
44

Network system

Improving Technical and On-site Capabilities
The MIRAIT Group implements training andtechnical certifications to steadily improve thetechnical strengths that support service quality.
Strengthening Construction Management
Capabilities
To strengthen management capabilities of theworksite supervisors*, the core expert in business
operations, “Worksite Supervisor Training” iscarried out for newly appointed worksite
supervisors and deputy worksite supervisors.
In recent years, with the increase in thenumber of construction sites and with thediversification and increased complexity of
construction works, worksite supervisors whoare in charge of construction works are expected
to have capabilities of dealing with a wide rangeof tasks and situations. The “Worksite
Supervisor Handbook” that is a culmination of
the MIRAIT Group’s experience and know-how isused during this training. In addition to learning
the basics of construction management such as
budgeting and cost control, it fosters pragmatic

19

Corporate Report 2019learning and problem-solving by adopting
discussions and role-playing.
Training Specialized Technicians
Varied training programs are organized todevelop specialized technicians at thetechnician development working group which
involves partner companies.
At the mobile skill training, basic knowledge
and know-how as well as keys to safe

construction are learned according to the skill
and operational duties of each trainee, in 4
groups according to competencies. Trainees canjoin across the boundaries of businessdepartments. Since 2010 when the training
began, a total of 1,129 people have participatedand improved their skills.
*Worksite supervisor is one of the supervisory positions to oversee
individual works appointed by the MIRAIT Group.

In October 2018, FUJII Motofumi at the West Japan Business Division, NTT Business Unit MIRAITTechnologies Corporation, received the Minister of Land, Infrastructure and Transports Award for
Outstanding Engineering. This Award is given toengineers directly engaged in manufacturing
who have superior skills and technical ability
and greatly contribute to guiding and training
next generations. The MIRAIT Groupconsistently improve and inherit technical skills
which would help us work effectively atrecovering from disasters growing in numbers
over recent years.

The companies of the MIRAIT Group operate an
occupational safety and health management
system certified under the OHSAS 18001. We
work in concert to comply with laws andregulations as well as occupational safety andhealth requirements, reduce and eliminate
occupational safety risks through risk
assessment and activities to anticipate danger,in addition to raising awareness througheducational exchanges in accordance with the
Policy on Occupational Safety and Health,which clearly names safety as the highest
priority in operations. We continuously improve
our performance by setting all actions that leadto accidents resulting in injury or death, traffic
accidents and other seriously unsafe incidents
as supervision check-points.
Striving Toward the Eradication of
Accidents and Improvement of Safety
Quality
Getting the basics right in our daily actions isessential to achieve the goal of eradicating
accidents and improving safety awareness of
our operations.

For on-site workers to better understandsafety, we prepare materials such as operationalsafety handbooks, conduct safety trainings andreview results, and make videos of accident
scenes and visual presentations of relevant laws
and regulations. Fostering safety communication
with them, senior managers including thepresident diligently visit workplaces to raise
each worker’s awareness of safety.

Danger Simulation Training (Reproducing Rooftop work under
Rainy Weather Conditions)

MIRAIT Group Safety Convention
In conjunction with “National Safety Week” inJuly, we hold annual “MIRAIT Group Safety

Convention” in two locations, east and west,
with not only group companies but also partnercompanies taking part, to reconfirm safety
awareness and share knowledge on safetymeasures. (The number of attendants 818
members participated in the Tokyo meet and596 members in the Osaka meet.) In fiscal
2018, we held presentations from each Group
company about examples of safety measures
as well as lectures by third-party instructors toraise safety awareness even further.
Danger Simulation Training
Aiming to eradicate falling and slipping
accidents which account for approximately
40% of all fatal accidents in constructionindustry, the MIRAIT Group holds danger
simulation training for employees (including
those of partner companies) at a facility wheretrainees can experience simulated accidents.
Experience helps trainees better understand theimportance of basic actions and safety
appliances. We expanded the branch offices tojoin the training and training items, and had
more than 168 trainees in fiscal 2018.

Ensuring Safety in a
Large-scale Disaster

Support of HealthManagement

Mental HealthIn response to social needs, we have
distributed a Pocket Manual for Major
Earthquakes and other Disasters to employees
in case of major contingencies. It contains acollection of information regarding principles ofaction to be taken and safety confirmation
methods when a disaster occurs. We also callon employees to check routes to walk home,and organize trainings of using the safety
confirmation system.

In addition to regular health check-ups for all
employees, comprehensive medical
examinations (for those who have reached acertain age) and specified health guidance areconducted for the benefit of healthmanagement by our employees. We also
provide recreation facilities in several locationsin Japan as opportunities to refresh, and weorganize activities that promote health such as
the walking events rallies held by the Health
Insurance Association.

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

Corporate Report 201920

Building and Maintaining Safe and Reliable Technical Capabilities

Work-style Reforms

Diversity

We strive to provide attractive and worthwhile places to work where every employee with self-discipline can find motivation,
perform to their full potential, keep on working with physical and mental health, and feel their own growth, while theorganizational capabilities of our teams are exerted to the maximum.

We respect individual personality and seek to build workplaces where our employees perform to their full potentials,
regardless of age, gender, nationality, or handicap.

Advancing Efforts Towards Work-style Reforms

Empowering Female Employees

The MIRAIT Group announced its “Work-style
Reform Declaration” by the President to reform
work-styles throughout the Group to cultivate
sustainable growth as a “comprehensive
engineering and services firm” that responds tofuture changes in the labor market andbusiness environment.
We will push forward effective work-stylereforms through the following coherent andintegrated approaches: (1) realization of diverse
and alternative work styles, (2) optimization of
overtime work and promotion for employees totake leave, and (3) effective empowerment ofdiverse employees through flexible work styles.

We devise action plans and analyze challenges
for each group company so that female
employees can reach their full potential andpursue their careers in a wide range of arenas.
We set targets chiefly on the female ratio of
those hired as new graduates and of those inmanagerial positions, and occupational fields forfemale employees, striving to increase all these.
In doing so, we seek to promote work-lifebalance and support those who work as theyraise children or nurse family members.

Comprehensive Engineering & Service Company
A High-Productivity
Company

A Venturous
Company

An Attractive
Company

Transform Organizational and Cost Structure
Enhance Productivity and Strengthen
Cost Competitiveness

Further Work-Life Balance

Promote Diversity

Enhance Employee Skills andPromote HealthOrganization Where Diverse Human
Resources Actively Participate

Initiatives
Realizing Diverse and Alternative Work
StylesWith the revised Labor Contract Act andPart-time Employment Act going into effect, wehave been making necessary changes to ourpolicies to encourage diverse people to perform
to their potentials. We have established a limitedarea employment policy where non-regular
employees who are subject to limitations on
where to work but are still expected to perform
well can become regular employees.
Optimizing Overtime Work and Promoting
Employees to Take Leave
We strive to create workplaces that facilitate
better employee health and work-life balanceby setting no-overtime days, encouraging
employees to leave work on time, andpromoting employees to take paid leave inconjunction with the spring and summer breaks
as well as new year holidays.

21

Corporate Report 2019

We pursue to reduce total working hours byheightening operational efficiency throughpromoting KAIZEN (improvement) activities and
ICT use at each workplace, and by monitoringsuitable working hours with a PC log system.
Empowering Diverse People ThroughFlexible Work Styles
We are building workplaces where all thediverse people can achieve work-life balanceand efficiently produce results, by promoting
flexible and modified working hours as well as
telecommunting (working from home, on
business trips, or at satellite offices) using ICT.
We actively participated in “Telework Days2019” organized by the Japanese government.

(A) Reforms to Corporate
Climate and Awareness(B) Reforms to Operations andSystems

Reforms to corporate climate and awarenessinclude executives, managers and regular
employees for the purpose of securing
workforce and enhancing productivity.

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

SupportThree
Initiatives

Support(C) 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.

Supporting Those Who Work and Nurse
FamilySo that employees can continue working with asense of security for a long time, parental leave(available until the child reaches three years ofage) and reduced working hours system(available until the child finishes the third yearof elementary school), plans are available
corresponding to major life events such as
childbirth, infant care or nursing that exceed
levels stipulated by law. Since the MIRAITGroup started the plan in October 2012 until
March 2018, the rate of maternity leave taken
by female employees is 100%. The rate formale workers is more than 70%, which weseek to raise. We areenhancing support for thoseon leave to smoothly return
to work and perform well.
MIRAIT Technologies
Corporation was awarded
the “Kurumin” certification
mark by the Minister of Health, Labor andWelfare for companies supportive of those who
raise children.
Certified as an “Eruboshi” company“Eruboshi” is a certification program which
awards companies superior in empowering
female workers. Companies who formulate andreport an action plan to promote women’s
performance in the workplace and implement it
outstandingly are authorized by the Minister of
Health, Labor, and Welfare to use the logo

mark. MIRAIT Technologies
Corporation met the criteriaof all five categories(recruitment, employment
continuity, work style, ratio of female
managers, and variety of career choices) andreceived the third level of certification, thehighest one. MIRAIT Corporation also satisfies
all the criteria for certification.
Presented the 2018 Excellence Award of
the Mayor’s Prize to a Leading Company
Promoting the Active Participation of
Women in Osaka CityMIRAIT Technologies Corporation received
recognition for its consistent activities as an
excellent company working to promote theactive participation of women by Osaka City inaddition to receiving the
Ikumen Award as acompany supporting men to
help raise their children.

Support for Elderly Employees

Promoting the Active Role of Local Personnel in Foreign Countries

In response to Japan’s decreasing birthrate andaging population, to support the participation ofelderly employees who have qualification foradvanced technologies vital fortelecommunication construction industry, we
have set the retirement age to 62 and haveestablished a re-employment program tomaintain an environment where those who
desire to work can continue taking an active role.
We also hold life plan seminars for
employees who have reached a certain age andsupport them with work designing and financial
planning after employment extension.

The MIRAIT Group currently runs overseas basesin 14 countries and regions mainly in Asia-Pacificarea where locally hired personnel takes onimportant roles. Through mutual support such asdispatch of 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 withlocal communities such as hosting a Christmas
party with children who have disabilities.

Corporate Report 201922

Building and Maintaining Safe and Reliable Technical Capabilities

Human Resource Development
We support each employee’s growth from broad perspectives to systematically reinforce human capitals that will underpin
our future.

Personnel Training System

Improving Technical Capabilities

The MIRAIT Group considers human resource
development as one of 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 masteryof common knowledge required at eachprofessional level (see the diagram below).
Supporting each employee’s growth, we arereinforcing our human base which, in turn, willsustain our prospective businesses.

Our human resource development system
has been designed for employees to learn skills
and knowledge tailored to the role expected ofthem at each level and stage of their career,from trainings for those who just joined us tothose for senior managers. Especially richprograms have been developed for new
employees so that they can perform wellirrespective of their academic background. Ourinterview program encourages employees tomake daring challenges for professional
qualifications as they put in practice goals andcareer ambitions throughdiscussions with their supervisor. A
bonus system that rewards
different degree of employees’
challenges also accommodate theirpositive attitude.
New employee training

Internship Program
We hold an annual internship program forstudents in August with the primary aim ofsupporting the working life of the future
generation of Japan. Through a shortinternship of about one week, students havethe opportunity to cultivate their occupational
perspectives and learn about their aptitude
through such experiences as connecting
telecommunication cables, operating drones,and visiting construction sites.

Students Operating Drones

Expansion of Operations
Organizational Revitalization
Increase in Productivity
Growth Through Personnel Administration
Completeness of Training Environment
Evaluation/Appointment

Promotion of
Cross-industrial
Interaction

Self-development

Business Headquarters

Sectorial Model
SystemPromotion of Interactive
Personnel Administration

Branch Offices

Stratified Model
SystemWithin and Outside
the Group Companies

The MIRAIT Group encourages and supports
acquisition of professional qualifications in awide range of fields as proof of the technicalstrength of the employees.
We actively develop capabilities in thetelecommunications, electrical engineering, andTechnical and Skill Training

Goals for professional qualifications set every
year at interviews with the supervisor
Monetary incentives for acquiring designatedqualifications

1,153

1,742
1,583

Broad technical training for multiple skills
Support for Qualification●●

ICT fields. We also seek to train drone pilots forthe expansion of drone-related businesses. We
have become a qualified training body thatprovides skill certification, with our name listedon the website of the Ministry of Land,
Infrastructure, Transport and Tourism.
Technical Radio Operators for On-the-ground Services (Type 1)
Special radio operators for on-the-ground services (Type 1)

Electrical workers (Type 1/Type 2)●

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

Experiencing Different Corporate Cultures
and Diverse Work Duties

We make every effort to improve technicalcapabilities of each employee to build
high-quality and stable communication
facilities and systems in addition to responding
more quickly to the ever-changing requirementsof society in order to bring satisfaction tocustomers.

1,078
978

1,143
828

875

2016

2017

984

894

910

2017

2018

865
2018

2019

2016

2019

■MRT、
MTC ■All Employees of MRT, MTC, TTK, SOLCOM, and Shikokutsuken Corporation

Training programs at overseas operations

Mentoring Program

The MIRAIT Group conducts various training
programs for employees hired at their overseas
bases. DAIMEI SLK (PRIVATE) LIMITED, the
MIRAIT group company based in Sri Lanka,
provides services focused upon internal andexternal construction of optical stations
including civil engineering for major
telecommunications firms and major
communications equipment vendors. Becausemuch of the construction is carried out by
partner companies, training programs for them

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-awarenessand advice 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.

are just as vital for our employees. Programs
are comprehensive and elaborate, fromtechnical training (classroom lectures or OJT) tosafety measures (classroom lectures, morning
meetings, on-site inspections before
operations, etc.).
In addition to trainings, we also award bestpractices of maintaining service quality andsafety. We strive in our daily work to maintain
trust from customers and to secure safety of all
those involved with our operations.

Idea behind the Mentoring Program
Gain Multiple Skills

Assurance of Diverse Human Resources
Hiring of New Graduates Hiring of Mid-career Employees Women

Older Adults

Technical Training

Company Support

Guidance
Section Supervisor/Senior

New Employee (Mentee)

Preparing the Training Environment
At such places as Ichikawa Training Center(Ichikawa City, Chiba Prefecture), Kansai Hyper
Techno Port (Kobe City, Hyogo Prefecture), theExpert Center (Sendai City, Miyagi Prefecture),

23

Corporate Report 2019

and the Technical Center (Hiroshima City,
Hiroshima Prefecture), various equipment has
been installed for full-blown skills training andtechnology development. From new employees

to veterans, we all are improving ourtechnological and proposing capabilities to give
concrete shapes to our customers’ andsociety’s needs of the time.

Mentoring Support

MentorCorporate Report 201924

Building and Maintaining the Trust of Society

Protecting the Environment
We have steadily been reducing energy use, CO2 emissions and waste in our daily
business operations. We also seek to control environmental impacts throughout the life
cycle of infrastructure we develop and environmental footprints of our supply chain.
Solar Power Generator of the Kobe Technical Center

Environmental Management
The MIRAIT Group has acquired EMS(Environmental Management System ISO 14001)
certification for our domestic group companies.
We have also put in place and run environmental
management systems in line with this atoverseas group companies one by one.
At each business location, environmental
aspects of our operations are identified andimpacts are assessed. We then design steps tomanage material environmental aspects,
formulate action plans for each fiscal year,
review progress to find the results andchallenges, informing continuous improvement.
We conduct regular audits. One internal andone external audit are held once a year at ourContributing to Circular Society
business base with ISO 14001 certification.
Over the four years from 2014 to 2017, thenumber of our violation of environmental laws,
accidents or pollution that would cause
environmental problems, and environmental
complaints were all zero (at the domestic groupcompanies).

Environmental Goals and Achievement Status
TargetFiscal 2018 Results

Reducing CO2 emissions by morethan 1% from the previous year

±0 compared to FY 2017

Sharing Results
We aggregate actual values of our main
performance indicators for environmental
protection activities (CO2 emission, electricity
consumption, consumption of fuels such as
gasoline and kerosene, emission of paper waste,
household waste and industrial waste, and green
purchasing payments) and monitor and analyze
them to promote our activities.
In summer and winter when electricity
consumption increases, each workplace sets its
own targets and organizes campaigns to reduce
electricity use.

<Boundary> MIRAIT Corporation and MIRAIT Technologies
Corporation (from the use of electricity, heat and steam suppliedby other companies)

Mitigating Climate Change
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.

Improving Fuel-efficiency of Vehicles
We work to raise company-wide awarenessand energy efficiency by introducing
low-emission, fuel-efficient vehicles, and byencouraging eco-driving forless environmental impacts
and fewer traffic accidents.

363

IIn 2012
2012,
0 a cloud-based building energy management system was introduced at the Shinkiba
Building of the MIRAIT Corporation. This system reduces power consumption by automaticallyindoor space at an appropriate level. Furthermore, in 2016, we added peak-cut control function sothat when the building’s consumed power exceeded the threshold, the air conditioning (outdoor air

25

Corporate Report 2019

processing unit), which

Promoting Recycling Construction Spent
Products
We promote recycling by collecting uniforms
and helmets after they have been used andusing a thermal processing (used as heat) bycontracting a specialized company.
Reducing Paper Use
We are promoting paperless meetings andstandardizing procedures for using multifunction
devices that eliminate wastefulness.

Comprehensive Environmental Protection Measures
Green Development Guidelines
The MIRAIT Group has established Green
Product Development Guidelines compiling thepoints that should be considered from theproduct 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 theconstruction method, product, or service.

Environmental Standards for Evaluating and
Selecting Business Partners
In evaluating and selecting business partners,
the MIRAIT Group considers their approaches
to CSR. We ask about environmental
considerations (promotion systems, chemical
substance management, CO2 emission
reduction, and industrial waste reduction) as abasis for our decision (see p. 27).

ratio of consumed power,
is turned off. We werethus able to reduce
contracted power from
458kW to 396kW for an
approximately 14%
reduction.

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.

Green Purchasing
We purchase office supplies and paper based on
the recommendations of GPN* green purchasing
guidelines as much as practicable. The green
purchasing ratio for MIRAIT Corporation and
MIRAIT Technologies Corporation was 85.7%
and 80.0% respectively in fiscal 2018.
*A list of items (per product category) to consider from environmental
viewpoints upon making purchasing decisions, prepared by the GPN(Green Purchasing Network).

In fiscal 2018, we joined pruning and thinningin 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.
Works in the Kurumatsukuri Forest

Peak-Cut Effect at the MIRAIT Shinkiba Building

accounts for a significant
470
460
450
440
430
420
410
400
390
380

Contracted Electric Power (kW)Businesses to Serve Environmental Protection

458kW
Peak-cut Test Start

396kW

20
16
20 .1
16
20 .2
16
20 .3
16
20 .4
16
20 .5
16
20 .6
16
20 .7
16
20 .8
16
20 .9
16
20 .1016
20 .11
16
.1
20 2
17
20 .1
17
20 .2
17
20 .3
17
.4

Promoting Power Saving
Most of the energy consumed in offices iselectricity. The MIRAIT Group is making unified
efforts to promote power saving throughmultifaceted approaches: more efficient use
and reduction of printers and copy machines;
power-saving settings of PCs; proper indoor
temperature control; switching off unnecessary
lighting; and education for controlling elevatoruse.

telecommunications construction industry
program – starting in 2008 and, except for a few
sizes, use only ECO drums.

Biodiversity Conservation

controlling the indoor temperature at a set point while controlling the CO2 concentration of thethousand kWh

Recycling of Construction By-products
We continuously work to minimize the volume
of construction by-products that occur at eachconstruction site and to discover ways to recycle
by-products that do occur. As part of that effort,
we switched from wooden drums on whichsteel stranded wire is wound and disposed ofafter one use to a reusable ECO drum – part of aCompany Car with Eco-Drive Sticker

Saving Energy and Reducing CO2 Emissions through Building Energy Management
Annual electrical power output of solar power
generators at 13 offices of MIRAIT Corporation and
MIRAIT Technologies Corporation (fiscal 2018)

ECO Drum

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 of energy management
systems and battery systems.
We are also taking an active part ininitiatives toward realizing high-efficiency

smart energy systems and smart cities, by suchapproaches as developing broadband wirelesssensor network systems and next-generation
mobility.

Corporate Report 201926

Building and Maintaining the Trust of Society

Social Responsibilities in the Supply Chain

Helping Local Communities

We work to promote social responsibility in the supply chain by considering commitment to CSR when evaluating andselecting business partners.

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

CSR as Evaluation Criteria for Business Partners

Support Problem-solving in Local Communities and Society 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 abilityof business partners to supply products andservices following our requirements and toensure procured products conform to therequirements. Both suppliers of materials,
semi-finished products, and measurement
instruments and service providers are subject
to the rule.
The MIRAIT Technologies Corporation uses
common items in evaluating and selecting
domestic business partners. Items directly

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 aquality 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

CSR

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

relevant to customer satisfaction and those forassessing commitment to CSR are included.
We give an overall score on commitment to
CSR after interviewing each business partner
about their environmental considerations(promotion systems, chemical substancemanagement, reduction of CO2 emission andindustrial waste emission) as well as theircontributions to local communities (citizenshipactivities and dialogue 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 bypartners who were given low scores as a resultof evaluation.
The MIRAIT Corporation uses a similarsystem to conduct comprehensive evaluationsof business partners.

Area and Questions to Ask Partner Companies about CSR Activities
Area

Question

1. Environmental
considerationsa

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

b

Does your company properly manage chemical substances in product and manufacturing processes?

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 MIRAITGroup 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 restoringtsunami control forests.
Donations to Three Prefectures Afflictedby Torrential Rain July 2018
In fiscal 2018, Japan was struck by multiple
disasters from flooding caused by typhoons tolarge-scale earthquakes. In particular, thetorrential rain in July 2018 caused massive
damages recorded in many parts of Japan,
especially in the west. The MIRAIT Group
donated 3 million yen to the people in
Okayama, Hiroshima and Ehime which were hit
particularly hard, 1 million yen to eachprefecture.

Shareholder Benefit Option to Donate to
the Special Olympics Nippon
The MIRAIT Group endorses the purpose of theSpecial Olympics Nippon. From fiscal 2018, we
included donations to the organization in themenus for shareholder benefits. This fiscal
year, the second time, we received the supportof 236 shareholders and donated a total of
494,000 yen. We will keep on contributing to
the creation of a society where diverse people
can live together.
Utilization of Abandoned Fields and Rice
Paddies
In many parts of Japan, abandonment of once
cultivated fields and rice paddies is increasing,causing damages by weeds, pests, birds andanimals to neighboring farmlands. Murayama
Doken Co., Ltd., one of partner companies ofthe MIRAIT Group, grows rice in formerly
abandoned land in Tokamachi City, Niigata
Prefecture, to help the local community. The
MIRAIT Group supports this activity andinternally recruits volunteers for rice planting
and reaping.

Harvesting “MIRAIT Rice”

NTT Chiba Group Inage Beach Clean-up Activities

c Has your company set targets to reduce CO2 emissions and does it work to establish manufacturing, fabrication, distribution and other processes with a low environmental burden?

2. Contributions to
Local Communitiesd

Has your company set targets to reduce industrial waste, and does it process that waste appropriately?

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 CSR 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 our suppliers in operations

27

Corporate Report 2019

related to building social infrastructure,
particularly telecommunications engineering,
our main business.
The guidelines in use have focuses on six
areas related to CSR: quality, delivery,

improvement activities, management stability,
environmental protection, and informational
resource management.

Communication with Local Communities
Joining Festivals and Clean-up Activities
Traditional festivals around Japan is becoming
increasingly difficult to survive as social
structures change. The MIRAIT Group
companies encourage employees to join local
festivals, sometimes as a bearer of mikoshi
shrine.
We also continuously take part in local
clean-up activities.

Participation in the Toyosu Festa
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 fiscal 2018, a total of roughly 60
volunteers from Group companies provided
handmade air gun games, balloon art
performances and freshly-made popcorn.

Goryo Shrine Summer Festival

Toyosu Festa

Corporate Report 201928

Building and Maintaing the Trust of Society

Policy and Procedures for the Nomination of Candidates for the Board of Directors and Auditors

Corporate Governance and Internal Control
Basic Approaches to Corporate Governance
The MIRAIT Holdings Corporation recognizes theimportance of management as asocially-responsible company and has put inplace organizational structures and systems toensure transparency and fairness indecision-making. Building relationships foundedin trust with all of our stakeholders is positioned
as the most important aspect of management.

We recognize building relationships foundedin trust with all of our stakeholders as
indispensable to the realization of effective
corporate governance. Therefore, we areenhancing the following to raise effectivenessof our corporate governance:

shareholders;- Collaborate with stakeholders other thanshareholders in appropriate ways;- Disclose information in appropriate ways andsecure transparency;- Deliver on responsibilities, especially that of
the board of directors;- Engage with shareholders.

- Protect shareholder rights and equality among

In the nomination process of candidates for theboard of directors and auditors, the MIRAIT
Holdings Corporation established a Nomination
and Compensation Committee chaired by anindependent outside director to select a wide
variety of candidates from both inside andoutside of the company in December 2018.
Candidates who have superior personality,
judgment and high management skills arechosen by the board of directors under theguidance and findings of this committee.

In particular, outside directors who haveabundant experience and knowledge acrossdifferent fields can nominate individuals fromthe perspective of enhancing the medium- tolong-term corporate value of the firm byproviding guidance and managerial supervision,
and who can carry out their roles and duties
with a specialized and objective viewpoint.
Moreover, as outside directors we appoint
those who have abundant experience andknowledge across different fields, and can withindependent and objective views properly
monitor the board of directors’ managerial
decisions, execution of duties, and theirobservance of laws and ordinances, enhancing
transparency of the board and serving greater
corporate value.
The rationale for selection of each director
and auditor is outlined in the notice of general
meeting of shareholders.

Overview of Established Corporate Bodies

Corporate Governance Structure
We are a company with auditors, overseen by aboard of directors, board of corporate auditors,
and accounting auditors.
As of June 26, 2019, the MIRAIT Holdings
Corporation has 11 directors, two of whom areoutside directors. We put a more effective andefficient system in place by sufficiently
functioning as a holding company while havingsome board members serve core subsidiarycompanies as well.

Additionally, we have set up a system forreciprocal cooperation where the board ofcorporate auditors together with an internal
audit section and accounting auditors eachperform independent inspections.

Governance Structure
Election/Dismissal

Name

Purpose/Authority

Representative

Members

Board of Directors

Body to determine fundamental
management policy for the MIRAITGroup in accordance with laws andregulations as well as the Articles ofIncorporation

President and Chief
Executive Officer
SUZUKI Masatoshi

Directors

TAKAHATAKE Kouichi, NAKAYAMA Toshiki, HARA Ryuichi,
YAMAMOTO Yasuhiro, TOHTAKE Yasushi,
TSUKAMOTO Masakazu, DOI Mikio, HIRABARA Toshiyuki,
EBINUMA Eiji, BABA Chiharu

Auditors

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

Nomination andCompensation
Committee

Body established as an advisorycommittee for the board of directors
for the purpose of heightening theobjectivity in matters related to thenomination and compensation of
directors

Director (Outside)
BABA Chiharu

Directors

EBINUMA Eiji, SUZUKI Masatoshi

Board ofCorporate Auditors

Body to receive reports as well as
discuss and approve important
auditing matters

Corporate Auditor
KIRIYAMA Manabu

Auditors

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

Executive
Committee

Body to receive reports and deliberate
on vital policies about importantmatters related to management
policies

President and Chief
Executive Officer
SUZUKI Masatoshi

Directors

TAKAHATAKE Kouichi, NAKAYAMA Toshiki, HARA Ryuichi,
YAMAMOTO Yasuhiro, TOHTAKE Yasushi,
TSUKAMOTO Masakazu, DOI Mikio, HIRABARA Toshiyuki

Managing
Exective Officer

MITSUYA Takaaki, KATSUKURA Tomoho

OperatingCompanies

ABE Takeshi

Directors

TAKAHATAKE Kouichi, NAKAYAMA Toshiki, HARA Ryuichi,
YAMAMOTO Yasuhiro, TOHTAKE Yasushi,
TSUKAMOTO Masakazu, DOI Mikio, HIRABARA Toshiyuki

Auditors

KIRIYAMA Manabu, SEKI Hiroshi

OperatingCompanies

KADOIKE Kiyotaka, ITO Fuminori, WATANABE Yuji,
MORIOKA Torao, AKASE Kaoru

Directors

TAKAHATAKE Kouichi, NAKAYAMA Toshiki, HARA Ryuichi,
YAMAMOTO Yasuhiro, TOHTAKE Yasushi,
TSUKAMOTO Masakazu, DOI Mikio, HIRABARA Toshiyuki

Auditors

KIRIYAMA Manabu, SEKI Hiroshi

OperatingCompanies

KADOIKE Kiyotaka, ITO Fuminori, WATANABE Yuji,
MORIOKA Torao, AKASE Kaoru

General Meetings of Shareholders
Election/Dismissal

Election/Dismissal

MIRAIT Holdings
Audit

Board of Corporate Auditors

Board of Directors
Consultation/Reporting

Collaboration

Nomination andCompensation Committee

Collaboration

Instruction

Supervision

ReportingPresident and CEO(Executive Committee)

Internal inspection section
Reporting
Investigation

Accounting Auditor

Compliance
Executive
Committee

Audit- Strategy Department
Audit

Audit/Reporting- Finance and Accounting Department- Corporate Affairs Department

Reporting- M’s Brain Center, etc.

Instruction

Business Management

VariousCommittees

Consultation/Reporting

Risk Management
Executive Committee

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

Body to deliberate and determine
policies, structure and other matters todrive the effectiveness and efficiencyof risk management

President and Chief
Executive Officer
SUZUKI Masatoshi

President and Chief
Executive Officer
SUZUKI Masatoshi

Note: 1 EBINUMA Eiji and BABA Chiharu are outside directors. 2 SEKI Hiroshi and KATSUMARU Chiaki (ISHIKAWA Chiaki) are outside auditors.

MIRAIT Group Companies

29

Corporate Report 2019

Corporate Report 201930

Building and Maintaing the Trust of Society

Policy and Process to Determine Compensation for Directors
The compensation system for directors first
approves the compensation for directors at theBoard of Directors’ meeting before determining
the total amount (the total limit) at the General
Meetings of Shareholders. The individual director
compensation is determined according to the roleand responsibilities of each executive officer. The
ratio of performance-linked compensation and
fixed compensation for the compensation of
directors is approximately 20% for the former and
80% for the latter.
The Nomination and Compensation
Committee made up of two independent outside
directors and the President and Chief Executive
Officer was also established in December 2018as an advisory body to the board of directors forthe purpose of enhancing objectivity andtransparency of decisions about thecompensation for directors. This committee
reports the results of deliberations about suchmatters as policies for determining how to
calculate compensation of executive officers, toassist in decision-making by the Board of

Directors based on those findings.
The total amount of compensation for
directors and other remuneration was set as no
more than 300 million yen per year (no more than
30 million yen for outside directors, etc.) at the
1st General Meeting of Shareholders held June
28, 2011. In addition, the 6th General Meeting of
Shareholders held on June 28, 2016 approved aperformance-linked stock-based compensation
plan (Board Benefit Trust) as a separate
framework from the above compensation for
directors, which provides benefits to executive
officers upon retirement in accordance with theregulations on issuing shares to executive
officers determined by the Board of Directors.
The introduction of this system further
clarifies the link between compensatision,
corporate performance, and share price so that
directors and shareholders not only share thebenefits of rising share prices but also the risk offalling share prices. The purpose of this plan is tofurther heighten awareness about contributions
to enhance medium- to long-term businessperformance and corporate value another level.
For fiscal 2018, we chose consolidated
operating income, which should help heighten
awareness about contributions to the businessperformance and corporate value of Group
Companies, as the indicator for
performance-linked compensation. Also, theBoard Benefit Trust award points, calculated
from the results of the consolidated operating
income, in accordance with the internal
regulations on issuing shares to executives.
The consolidated operating income target in
the initial business plan for fiscal 2018 was also
set at 16.5 billion yen (18.5 billion yen in therevised plan) while the actual operating income
was 20.6 billion yen.
The Board of Benefit Trust contributes atleast the fixed ratio of monthly compensationand purchases company stock through an
executive shareholding association. We pursue
to set the company stock-based compensation at
an adequate level, with the performance-linked
benefit trust also in mind.

Total Amount of Compensation for Each Executive Class, Total Amount of Compensation by Type, and the Number of Eligible Executive Officers (FY 2019)
Total Amount of Compensation by Type (Million Yen)

Total Amount of Compensation(Million Yen)

Fixed Compensation

Performance-linked Compensation

Number of Eligible Executive
Officers (People)

Directors (excluding outside directors)

115

84

30

8

Auditors (excluding outside auditors)

24

24

—

2

Outside executive officers

33

33

—

7

Executive Class

Appraisal of the Effectiveness of the Board of Directors
The MIRAIT Holding Corporation conducts
self-assessments once a year for theeffectiveness of the board of directors for all
directors and auditors.
More specifically, we conduct a
self-assessment through an anonymousquestionnaire to primarily evaluate items fromthe structure and operational status of theboard of directors in addition to its
responsibility and functions to the state of theboard of directors as seen from thepoint-of-view of outside directors and corporate
auditors. The responses to these questions arecollected by an external law office with a dutyof confidentiality and analyzed by a third-party

31

Corporate Report 2019organization. We verify and assess the current
state of the board of directors based on the
results of this analysis and continually discuss
any problems.
In fiscal 2018, the management integration
expanded the business scope and the numberof matters to deliberate on grew. We added
items to gain feedback in our questionnaire
about discussion matters and discussion
criteria at the Board of Directors. According to
the results of a self-assessment, we made thenecessary revisions to the discussion criteria.
Challenges related to the operation of theBoard of Directors were being addressed, suchas the consistency of the document format for

discussions, prior provision to outside directors
and auditors, and earlier briefings before themeetings. Furthermore, feedback has shown
the need for more comprehensive deliberation
about the challenges faced in the new Groupstructure after the management integration.
We are working to further deepen discussions
at meetings of the Board of Directors while
sustaining and enhancing ongoing
effectiveness through discussion outlets suchas the deliberative assembly (set up in fiscal
2017) as a place for a free exchange of ideas
about medium- to long-term management
strategy and management challenges bymembers of the Board of Directors.

Directly Participating in the Formulation and Execution of Plans for the Chief Executive Officer
and Other Successors as well as Strategically Cultivating Future Candidates
The MIRAIT Holding Corporation appropriately
cultivates plans for future management
executives, such as the Chief Executive Officer
based on the management policy and othermanagement strategies.
The Board of Directors debates the selectionof the Chief Executive Officer based on theadvice and findings of the Nomination andCompensation Committee chaired by an outside
director.

Members of the Board of Directors (As of June 26, 2019)
President andChief Executive Officer

Senior Executive
Vice President

Senior Executive
Vice President

SUZUKI
Masatoshi

TAKAHATAKE
Kouichi

NAKAYAMA
ToshikiDirector and Managing
Executive Officer
General Manager of theStrategy Department

Director and Managing
Executive Officer
General Manager of
the Corporate Affairs
Department

Director and Managing
Executive Officer
General Manager ofthe Emerging Business
OfficeYAMAMOTO
Yasuhiro

TOHTAKE
Yasushi

Director

Director

DOI
Mikio

HIRABARA
Toshiyuki

Director (Outside)

Director (Outside)

Corporate Auditor

EBINUMA
Eiji

BABA
Chiharu

KIRIYAMA
ManabuCorporate Auditor(Outside)

Auditor

Auditor (Outside)

HOSOKAWA
Masayoshi

ISHIKAWA
Chiaki

HARA
Ryuichi

Director and Managing
Executive Officer
Chief Financial Officer

TSUKAMOTO
Masakazu

SEKI
Hiroshi(KATSUMARU Chiaki)

Corporate Report 201932

Building and Maintaing the Trust of SocietyInternal Control System
Our board of directors has adopted the Basic
Policies for the Internal Control System to ensure
the appropriateness of operations of the MIRAIT

Efforts to Enhance Communication
Group. We have also enacted Administrative
Regulations for Subsidiary Companies and aGroup-wide internal control system in our effort toappropriately manage the Group through specificinternal controls at our subsidiary companies.

Collaboration between the Corporate Auditors, Accounting Auditors, and the Internal Audit Section
As of June 26, 2019, the Board of Corporate
Auditors at MIRAIT Holdings Corporation is madeup of four corporate auditors, two of whom areoutside corporate auditors. Including one outside
corporate auditor, two of these board members
are full-time corporate auditors. No dedicatedstaff has been assigned to the corporate auditors.
Our corporate auditors draft auditing plans todefine auditing policies, divide theresponsibilities of each corporate auditor, andaudit the execution of duties by directors from
attendance at Board of Directors and otherimportant meetings to the review of important
approval documents through measures that
include an exchange of views with the President
and feedback from each director. In addition, we

regularly assemble the accounting auditors as asupervision and verification activity to determine
methods for accounting audits by accounting
auditors and determine relevant results. We also
work to improve the effectiveness of auditing
through close mutual cooperation in auditing andassessment for the purpose of determining theappropriateness of the accounting methods andresults by accounting auditors, which includes
receiving reports and explanations of the
preparation of internal control related tofinancial reports and the progress of building
systems to ensure adequate execution of duties
by accounting auditors as well as theassessment of the state of operations.
As of June 26, 2019, the internal audit

section of the MIRAIT Holdings Corporation ismade up of six members. The internal audit
section conducts audits of the MIRAIT Holdings
Corporation and Group companies with focus on
operational audits after assessing the overall
internal control systems. We also arestrengthening internal control functions such as
thoroughly checking the progress of
implementing improvements such as auditing
guidelines and suggestions.
The corporate auditors and the internal audit
section work through mutual collaboration, suchas exchanging views about auditing plans, theprogress of audits, and problems found in the
results of audits by assembling as necessary.

regarding risk control.
Regarding information security, the group has
introduced Information Security Management
Systems (ISMS; ISO/IEC 27001) and will work
painstakingly to prevent informational leaks andsafeguard assets. When an accident, including

information security accident, occurs, “0 Report”
is immediately shared with management. To be
prepared for a resourceful response, we have set
up an in-company accident bulletin reporting
system.

Risk Management
Establishing the fundamental approaches ofmanaging risks for the Group in the Risk
Management Regulations, we work to perform
effective control over various risk factors, and the
Risk Management Executive Committee – with
the President at its chair – reviews issues

ComplianceWith the Compliance Regulations in place, theCompliance Executive Committee – with the
President as its chair – deliberates on individual
problems of the Group as well as manages theDue Payment of Taxes
progress of promotion activities. We have also
distributed our Compliance Manual within theGroup to share awareness of business ethics
throughout the organization.

The MIRAIT Group observes all laws andregulations concerning taxation practices in all
countries and regions where it operates,consistently working to maintain and raise its
standards of taxation compliance.

Management of Insider Information as well as Timely and Fair Disclosure
The MIRAIT Group discloses accurate information
in a timely manner through TDnet and EDINET inaccordance with the Disclosure Policy publishedon the homepage and in other corporatematerials. We also make use of mediums such as
our corporate homepage

33

Corporate Report 2019(https://www.mirait.co.jp/en/) and press releases
in an effort to further broaden our disseminationof information. Furthermore, the MIRAIT Group
strives to provide beneficial information that iseasy for shareholders and other investors tounderstand, such as materials used in its IR

activities.
We fully and properly manage informationaccording to insider trading regulations when in
the possession of important information not yet
released to the public domain when talking withall shareholders and other investors.

The Investor Relations Office undertakes investor
relations activities as the department in charge ofinvestor relations under the supervision of the
Chief Financial Officer, who is the manager
responsible for the handling of information. The
managers responsible for investor relations
handle consultations with all of our shareholders
and other investors as much as possible.
The MIRAIT Group holds financial results
briefings twice a year for analysts andinstitutional investors and releases videos, suchas those on its website, to provide a look at thesebriefings. In addition to providing important
information in English in a timely manner tooverseas institutional investors, we also engage inoverseas IR activities in the North American,
European and Asian regions. Our representatives
also work to explain matters fully at thesefinancial results briefings and in our overseas IR
activities to encourage constructive dialogue withall of our shareholders and other investors.
In addition, the MIRAIT Group participatesaccordingly in presentations to individual investors
and other events held by brokerage firms.
We also provide feedback such as the opinions
and views received through venues such as
financial results briefings and individual
consultations as well to the primary parties
concerned with the Group.
Furthermore, the Group also sends MIRAIT
Report booklets that include businessperformance and topics to all of the shareholders
twice a year.

Efforts to Vitalize the General Meetings of Shareholders
The MIRAIT Holdings Corporation actively
endeavors to ensure vitalization of the General
Meetings of Shareholders and smooth voting
practices on matters through visualization andearly dissemination of convocation notices, online
voting, and the creation of English convocation
notices (abridged editions) among other measures.
We also set up venues to get to know all of ourshareholders after the General Meetings ofShareholders and work to have a broad exchangeof views.

Message from Our Outside Director
The Board of Directors is a corporate body required by the Companies Act to makedecisions about the business execution of the company. The corporate governanceadvocated for listed companies by the Tokyo Stock Exchange states: Given its fiduciary
responsibility and accountability to shareholders, in order to promote sustainablecorporate growth and the increase of corporate value over the medium-to long-term andenhance earnings power and capital efficiency, the board should appropriately fulfill its
roles and responsibilities, including: (1)Setting the broad direction of corporate
strategy; (2)Establishing an environment where appropriate risk-taking by the senior
management is supported; and (3)Carrying out effective oversight of directors and the
management (including shikkoyaku and so-called shikkoyakuin) from an independent andobjective standpoint. The MIRAIT Holdings Corporation is steadily achieving measuresthat include the introduction of a performance-linked stock-based compensation plan,
the adoption of effective assessment of the Board of Directors, the establishment of adeliberative assembly for directors to debate medium- to long-term management
challenges, the establishment of a Nomination and Compensation Committee, and theappointment of certified female public accounts as outside corporate auditors in order toproperly fulfill the role and responsibilities of the Board of Directors. We will continue tomake every effort to live up to the expectations of shareholders.

In addition to the advancements of technological innovation in the information andcommunications field, the environment around management continues to dramaticallychange, such as the amendments to the corporate governance code that requires evenfurther expansion of corporate governance. The MIRAIT Group has been pushing
forward clear business strategy and corporate governance, such as drafting the new
mid-term management plan and setting up a Nomination and Compensation
Committee, as a means to adapt to these changes. As a response to these important
issues, the MIRAIT Group has been praised for its efforts to sufficiently deepen
discussions in decision-making at the Board of Directors. These efforts include theongoing engagement of members of the Board of Directors in discussions at thedeliberative assembly, which was established as a place for prior discussions. We also
create opportunities for outside directors to meet with representative directors andother executive officers as well as facilitate prior discussions and an exchange of ideas
with presiding departments. In the future, suitable governance tailored to eachdiversifying business domain with a widening business scope due to the management
integration is vital toward succeeding in the new mid-term management plan. I hope toactively utilize my knowledge and experience in my efforts as an outside director.

December 2008
Registered as an attorney at law
April 2010
Part-time teacher at Sophia Law School (to present)
January 2013
Partner of Tanabe & Partners (to present)
June 2014
Director of MIRAIT Holdings Corporation (to present)
June 2016
Outside Director, Rakuten Bank, ltd. (to present)
March 2019
Audit & Supervisory Board Member<Outside>,
SymBio Pharmaceuticals Limited (to present)
June 2019
Outside Auditor of TOKO ELECTRICAL CONSTRUCTION CO., LTD.
(to present)

April 2005
Deputy President (Representative Director), Mizuho Trust & Banking Co., Ltd.
June 2007
Corporate Auditor (Full-time), Japan Energy Corporation (currently JXTG Nippon Oil & Energy
Corporation)
June 2012
Corporate Auditor (Full-time),
Outside Director
JX Nippon Mining & Metals Corporation
BABA Chiharu
June 2015
Outside Director, Saitama Resona Bank, Limited
Outside Corporate Auditor, Tohoku Electric Power Co., Inc.
June 2017
Outside Director (Member of Audit Committee),
Resona Holdings, Inc. (to present)
June 2018
Director of MIRAIT Holdings Corporation (to present)
Outside Director and Corporate Auditor,
Tohoku Electric Power Co., Inc. (to present)

Outside Director

EBINUMA Eiji

Corporate Report 201934

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 organizationthat 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
5,000

Gross profit/Gross profit margin(billion yen)

500

(billion yen)

(%)

469

15

300

(billion yen)

(%)

12.7
3,926

4,000
3,233
3,000

2,607 2,695

11.8

400

3,759

9.6

3,263 3,129
2,832

300

397

12

240

9

8

234

(yen)

80

(%)

80

200
100

1,000

0

0
2015

2016

2017

2018 (year)

2015■Orders received ■Net sales

40

60

35

180

6

2016

2017

2018

(billion yen)

(%)

30

30

60

30
37.6

10
8

0

0
2015

(year)

Ordinary income/Ordinary income ratio
250(billion yen)

(%)

200

2016

2017

2018

2

10

0

0

6

5.5

10

300

(billion yen)

(%)

10

257

150

5.8

5.7
4

3.5

100

3.7

8

6

180

2.3

2

4

120

3.7

4

115

0
2015

2016

2017

2018

2

0

■Operating income ■Operating income ratio

Total assets/Net assets
3,500

0
2015

(year)

2016

2017

2018

60

(billion yen)

2016

2017

2018

2,000

(yen)

350

1,933.8

0
2015

2016

2017

2018

1,995

(%)

100

1,400

1,265

80

1,407

1,288

56.9

59.3

58.0

1,511.7

1,570.5

126

145.4

150

50

80
79.8

2016

2017

2018

20

Cash and equivalents/Interest bearing debt

(%)

400

(billion yen)

60
40

320

291

20

300

90

287

240

12

30
181

160

8
4

2016

0
2015

2016

2017

■Total assets ■Net assets

2018 (year)

0
2015

2016

2017

2018

■Own capital ■Capital-to-asset ratio(year)

2017

2018(year)

2017

0
2017

2018 (year)

125

64

62

47
26

25

-30

150

-36

132

-19

-26

-36
-64

0
2016

2016

190

80

3.0

2015

2015

40

(billion yen)

2018

(year)

-71

-90
56

0

30

104

322

5.2
400

28

Cash Flow
150

331

15.4

16

24

0
2015

(year)

46

37

40

44.6

0
2015

193

120

100

8.8

800

700

(year)

295.3

200

63.1 1,241
1,200 1,229

2018(billion yen)

250

0

1,372

2,100 1,949

2017■Capital investment ■Depreciation

Return on equity (ROE)

1,600
2,180

2016

160

1,733.1

1,500(year)

200

300

1,800

1,600

(yen)

■Net income ■Net income ratio

1,964

2,364

13.5

Capital investment/Depreciation

356
2,800

2015

(year)Net income per share

4000■Ordinary income ■Ordinary income ratio

2,000

3,314

2015

2

64

1.3

(year)

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

Net assets per share

1,400

36
0

24.1

0

2018 (year)

2.3

2.5

50

2017

1,700
6

67

61

20

13.5

0
2016

1,900

240

105

100

24.1

2015

6.8

5.3

40

20

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

8

178

167

50

60

20

■SG & A ■SG & A ratio

206

100

3

4

219

200
150

120

■Gross profit ■Gross profit margin

Operating income/Operating income ratio
250

6

76.6
67.2

40
2,000

(%)

40

7.0

7.4

197

258

50

Total return ratio

67.2

230

7.3

335

10

262

8.3

12.5

Dividend payout ratio

Dividend per share

SG & A/SG & A ratio

4
2015

-111

-100

-150
2016

2017

2018 (year)■Cash and equivalents ■Interest bearing debt
■Net cash

2015

2016

■Operating cash flow ■Investment cash flow ■Financial cash flow

2017

-135
2018

(year)■Free cash flow

Net income attributable to owners of parent in fiscal 2018 includes extraordinary profit (10 billion yen)that accrues from the management integration.

35

Corporate Report 2019

Corporate Report 201936

Non-financial Data

Status of Shareholders

The MIRAIT Group also prepares and discloses material non-financial data from its business activities,
taking steps to widen its scope.

*The latest information can be found at our website (https://www.mirait.co.jp/en/)

Provision of renewable energy***

Total authorized shares: 330,000,000

350,000

348,724(kW)

Number of Qualifications*

Corporate citizenship spending

14,00040

280,000
212,11830

8,400

7,459 7,548

7,328

163,158
140,000

2.7

7,273

5,600
2,800

0

0
2016

2017

Major shareholders

4,570＊
3,262

70,000

3,432

3,278

3,386

10

Name

2014

2015

2016

2017

2018 (year)

2014

2015

■Number of software qualifications■Number of construction qualifications

Occupational Safety and HealthOccupational accident frequency rate**

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

0.33

0.00

0.18

0.19

0.00

Ownership (%)

Sumitomo Electric Industries, Ltd.

145,605

13.65

2016

2017

2018 (year)

Japan Trustee Services Bank, Ltd. (trust account)

100,070

9.38

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

49,819

4.67

Sumitomo Densetsu Co., Ltd.

24,886

2.33

SOLCOM Co.,Ltd.

22,688

2.13

STATE STREET BANK AND TRUST COMPANY 505001

18,898

1.77

Japan Trustee Services Bank, Ltd. (trust account 9)

16,224

1.52

Shikokutsuken Co., Ltd.

15,744

1.48

Japan Trustee Services Bank, Ltd. (trust account 5)

14,8591.39

Mizuho Bank, Ltd.

13,005

1.22*1 The ratio of shares held is calculated after subtracting the treasury shares (5,840,584).

Diversity*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.

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Ratio of women in new graduate hires

13.0%

19.5%

23.9%

24.6%

16.7%*

Ratio of women in managerial positions

1.8%

2.1%

2.7%

2.9%

2.7%*

Female directors (officers) and number of outside directors

1

1

1

1

2

Rate of parental leave taken by female employees**

100%

100%

100%

100%

100%

Rate of annual paid leave

49.5%

53.8%

53.3%

57.1%

64.7%

Environment

CO2 emissions (t-CO2)***

Number of shares held (in hundreds)02018 (year)*Generation capacity (cumulative total) of our groupconstruction facilities

Number of shareholders: 20,644 (excluding treasury shares)

3.0
2.7

20

126,735

2014 2015

3.6

3.6

11,200210,000

Total outstanding shares: 108,325,329 shares (including 1,632,965 treasury shares)(billion yen)

12,345＊

299,795

As of March 31, 2019

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

7,298

7,117

7,095

8,359

8,868

Share distribution by owner (excluding treasury shares)(shares)ratio

Number of shares by owner(shares)ratio

Financial institutions

33,658,569

31.6%

Financial institutions

57

0.3%

Financial Instruments business operators

1,117,942

1.0%

Financial Instruments business operators

44

0.2%

Other corporations in Japan

29,287,385

27.5%

Other corporations in Japan

314

1.5%

Foreign corporations, etc.

18,058,157

16.9%

Foreign corporations, etc.

208

1.0%

Individuals/other

24,570,311

23.0%

Individuals/other

20,021

97.0%

Total

106,692,364

100%

Total

20,644100%

Number of shares by owner

About the Numerical Data
Not indicated: Value is the total for MIRAIT Holdings Corporation, MIRAIT Corporation, and MIRAIT Technologies Corporation – the three companies*: 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)***: Total for MIRAIT Corporation and MIRAIT Technologies Corporation

37

Corporate Report 2019

Corporate Report 201938