Consolidated Financial Results
for the Six Months Ended September 30, 2020 [Japanese GAAP]
November 12, 2020
Company name:MIRAIT Holdings Corporation
Stock exchange listing: TSE
Code Number:1417
URL: https://www.mirait.co.jp/
Representative:
Toshiki Nakayama, President and CEO
Contact:
Masakazu Tsukamoto, Director and CFO
Phone +81-3-6807-3124
Scheduled date for filing of quarterly report:
November 12, 2020
Scheduled date for commencement of dividend payment:
November 30, 2020
Supplementary briefing materials on quarterly results:
Available
Quarterly results briefing:
Scheduled (for analysts and institutional investors)(Amounts are rounded down to the nearest one million)

1. Consolidated Financial Results for the Six Months Ended September 30, 2020
(April 1, 2020 to September 30, 2020)(1) Consolidated Operating Results (cumulative)(% indicates change from the same period of the previous fiscal year)
Net sales

Ordinary income%

million yen%

million yen%

million yen

%

4.8

6,744

36.0

7,748

38.7

4,799

43.2

30.4

4,958

(1.0)

5,587

(1.8)

3,352

(6.9)

million yen

Six months ended
191,788
September 30, 2020
Six months ended
182,973
September 30, 2019
(Note) Comprehensive income:Six months ended September 30, 2020
Six months ended September 30, 2019

Net income per share

Diluted net income
per share

yen

yen

44.69

－

33.44

29.78

Six months ended
September 30, 2020
Six months ended
September 30, 2019

Profit attributable toowners of parent

Operating income

3,788 million yen (-10.7%)
4,244 million yen (-13.4%)(2) Consolidated Financial Position
Total assets

Net assets

million yen

As of September 30, 2020
As of March 31, 2020
(Reference) Equity:

Equity ratio

million yen%

319,721
221,284
352,134
218,710
As of September 30, 2020
217,035 million yen
As of March 31, 2020 215,423 million yen

67.9
61.2

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

End of2Q

End of 3Q

yen

yen

Year-end

Fiscal year ended
－
－
20.00
March 31, 2020
Fiscal year ending－
22.50
March 31, 2021
Fiscal year ending－
March 31, 2021
(forecast)(Note) Revision of dividend forecasts from recently announced figures: Yes

1

Total

yen

Yen

20.00

40.00

22.50

45.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2021
(April 1, 2020 to March 31, 2021)(% indicates change from the same period of the previous fiscal year)
Profit
Net income per
Operating income Ordinary income
attributable toshareowners of parent

Net sales

Full year ending
March 31, 2021

million yen%

million yen%

million yen%

million yen%

Yen

445,000

0.9

23,000

4.6

24,3004.7

16,0005.1

148,97(Note) Revision of financial results forecasts from recently announced figures: Yes* Notes:(1) Significant changes in subsidiaries during the period under review: None
(2) Application of specific accounting practices for preparing consolidated quarterly financial statements: Yes(3) Changes in accounting principles and changes or restatements of accounting estimates:
1) Changes in accounting principles due to revision of accounting standards: None
2) Changes in accounting principles other than 1) above: None
3) Changes in accounting estimates: None
4) Restatements: None
(4) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury stock):
September 30, 2020

March 31, 2020

108,325,329 shares

108,325,329 shares2) Total number of treasury stock at the end of the period
September 30, 2020

3) Average number of shares outstanding
September 30, 2020

March 31, 2020

906,345 shares

958,390 shares

during the period
September 30, 2019107,386,848 shares

100,248,168 shares(Note) Total number of treasury stock includes the Company’s stock held by the Board Incentive Plan trust under theCompany’s performance-linked stock remuneration program for directors and executive officers.

*
-

*
-

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

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

2

Table of Contents: Supplementary Materials

1. Overview of Operating Results and Financial Position

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

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

P. 2(3) Future Outlook

P. 3

2. Notes to Summary Information (Explanatory Notes)

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

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

P. 3

Statements
3. Consolidated Quarterly Financial Statements and Notes

P. 4(1) Consolidated Quarterly Balance Sheets

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

P. 6(3) Notes to Consolidated Financial Statements

P. 8(Notes on going concern assumption)

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

P. 8

-1-

1. Overview of Operating Results and Financial Position(1) Overview of Operating Results for the Period under Review
During the first six months of the current consolidated period (from April 1, 2020 to September 30, 2020), theJapanese economy faced difficult conditions given the prolonged impact of the novel coronavirus disease(COVID-19). At present, there is no visibility as to when COVID-19 will be contained, and there are concernsthat the uncertainties may persist for some time.
In the information and telecommunications engineering business, which is the MIRAIT Group’s mainstay
business, some projects have been delayed due to voluntary restraints and disruptions in the delivery of
construction materials. New orders have also been impacted. However, in the medium- to long-term, demand for
new ICT solutions is expected to emerge with the expansion of fifth-generation mobile telecommunication (5G)
services launched in March 2020, and the penetration of online classrooms and teleworking/ work-from-homeunder the “new normal” amid the COVID-19 pandemic.
Against this backdrop, the MIRAIT Group is committed to continue business operations as a “Comprehensive
Engineering and Services Company” engaged in the building of social infrastructure that are essential tocommunities, cooperating with telecommunication carriers and other business partners in taking proactive
measures to prevent the spread of COVID-19. At the same time, the Group continues to execute initiatives forworkstyle reform and to improve operational efficiency.
During the first six months, the Group strived to increase sales by growing facility management operations in
the NTT business, work for Rakuten Mobile in the multi-carrier business, and air conditioning work in theEnvironmental and Social Innovation business. In the ICT Solutions business, the Group increased sales formobile-related construction materials and PCs/ servers for educational facilities supported by the GIGA School
Concept. The Group also promoted initiatives to enhance operational efficiency with the aim of maintaining/
improving profitability.
As for the consolidated financial results for the first six months ended September 2020, orders received
increased by 2.9% year-on-year to 229,157 million yen, net sales increased by 4.8% year-on-year to 191,788
million yen, operating income increased by 36.0% year-on-year to 6,744 million yen, ordinary income increased
by 38.7% year-on-year to 7,748 million yen, and net income attributable to owners of parent increased by 43.2%
year-on-year to 4,799 million yen.
(2) Overview of Financial Position for the Period under Review
Total assets at the end of the second quarter of the current consolidated fiscal period amounted to 319,721
million yen, a decrease of 32,413 million yen from the end of the previous fiscal year. This was mainly due tothe decrease in accounts receivables including those from completed construction contracts and other, whichmore than offset the increase in costs on uncompleted construction contracts and other.
Total liabilities decreased by 34,987 million yen from the end of the previous fiscal year, to 98,437 million
yen. This was mainly due to the decrease in short-term loans payable and accounts payable for construction
contracts.
Net assets increased by 2,574 million yen to 221,284 million yen due to net income attributable to owners ofparent of 4,799 million yen, despite the dividend payout of 2,156 million yen.
As a result of the above, the equity ratio at the end of the second quarter stood at 67.9% (compared with 61.2%
at the end of the previous fiscal year).

-2-(3) Future Outlook
The forecast for the consolidated financial results for the fiscal year ending March 31, 2021, has been revised
upward from the previous forecast announced on May 8, 2020, to reflect the steady performance in the first halfof the year and the anticipated expansion of 5G services and increase in demand for upgrading telecommunication
facilities with the penetration of teleworking/ work-from-home. The revised forecast for orders received is 450.0
billion yen (up by 0.8% year-on-year), net sales is 445.0 billion yen (up by 0.9% year-on-year), operating income
is 23.0 billion yen (up by 4.6% year-on-year), ordinary income is 24.3 billion yen (up by 4.7% year-on-year) andnet income attributable to owners of parent is 16.0 billion yen (up by 5.1% year-on-year).
Revision of Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2021
(April 1, 2020 - March 31, 2021)
Net sales

OperatingincomeNet income
Ordinary income attributable toowners of parent

Net income
per sharePreviously announced
forecast (A)(million yen)(million yen)(million yen)(million yen)(yen)

435,000

22,00023,30015,500144.36

Revised forecast (B)445,000

23,00024,30016,000148.97

Change (B-A)

10,000

1,000

1,000

500

―

2.3

4.5

4.3

3.2

―

441,166

21,99323,207

15,220149.93

Percentage change(Reference)Previous year's results(FYE March 2020)

2. Notes to Summary Information (Explanatory Notes)(1) Changes in Important Subsidiaries during the Period under Review
Not applicable.
(2) Application of Specific Accounting Practices for Preparing Consolidated Quarterly Financial Statements
Calculation of tax expense
Tax expenses are calculated by reasonably estimating the effective tax rate after applying tax effectaccounting against income before income taxes for the current fiscal year, including the second quarter ended
September 30, 2020, and then multiplying income before income taxes for the six months with the said
estimated effective tax rate.
The statutory tax rate is applied if the tax expense calculated using the estimated effective tax rate lacks
rationality to a significant degree.

-3-3. Consolidated Quarterly Financial Statements and Notes(1) Consolidated Quarterly Balance Sheets(Millions of yen)
Fiscal Year Ended
March 31, 2020
AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed
construction contracts and other
Costs on construction contracts in progress
Investments in leases
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Customer related assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Leasehold and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-

Six Months Ended
September 30, 2020

33,54340,448

147,584

102,069

32,758
6,123
5,798
(96)
225,71242,422
5,881
4,458
(73)
195,206

38,94832,806
1,383
9,457
82,596

38,57432,7852,584
9,551
83,496

1,943
2,921
1,729
118
6,711

1,796
3,754
1,630
117
7,298

30,139
1,967
2,081
1,385
1,687
(147)
37,114
126,422352,134

26,871
2,074
1,833
1,430
1,650
(140)
33,719124,514319,721

(Millions of yen)
Fiscal Year Ended
March 31, 2020
Liabilities
Current liabilities
Notes payable, accounts payable for construction
contracts and other
Short-term borrowings
Income taxes payable
Lease obligations
Advances received on construction contracts in progress
Provision for loss on construction contracts
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for warranties for completed construction
Other
Total current liabilities
Non-current liabilities
Long-term accounts payable - other
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for retirement benefits for directors (and otherofficers)
Provision for share based compensation
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-5-

Six Months Ended
September 30, 2020

58,73844,731

16,789
3,281
3,371
4,670
959
7,515
120
7
9,284
104,738

205
1,645
3,382
4,798
1,263
7,115
52
6
8,178
71,379

213
7,607
1,650
41

1,945
7,265
1,046
41

128

115

282
17,635172
953
28,685
133,424

258
15,384173
826
27,05798,4377,000
69,399135,546(1,386)
210,559

7,000
69,402
138,260(1,315)
213,346

4,967
(98)
(281)
276
4,863
3,287
218,710352,134

4,701(98)(1,192)
277
3,688
4,249
221,284
319,721

(2) Consolidated Quarterly Statements of Income and Comprehensive Income
Six Months Ended September 30, 2020
(Millions of yen)

Net sales of completed construction contracts
Cost of sales of completed construction contracts
Gross profit on completed construction contracts
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Surrender value of insurance policies
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on revision of retirement benefit plan
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sales of investment securities
Loss on valuation of investment securities
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable toProfit attributable to owners of parent
Profit attributable to non-controlling interests-6-

Six Months Ended
September 30, 2019

Six Months Ended
September 30, 2020

182,973
163,376
19,597
14,638
4,958

191,788
170,377
21,411
14,666
6,744

57
484
－
58

37
577
217
87

55

－

203
859

230
1,151

22
－
113
94
230
5,587

21
78
－
46
146
7,748

398
38
－
436

9
485
275
770

23
31
3
18
76
5,948
2,504
3,443

71
5
58
39
174
8,344
3,381
4,963

3,352
90

4,799
164

(Millions of yen)

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-7-

Six Months Ended
September 30, 2019

Six Months Ended
September 30, 2020

1,096
(235)
(59)

(264)
(912)
1

(1)

(0)

800
4,244

(1,175)
3,788

4,156

3,624

88

163

(3) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes on significant changes to shareholders’ equity)
Not applicable.

-8-