Consolidated Financial Results
for the Three Months Ended June 30, 2021 [Japanese GAAP]
August 11, 2021
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:
August 11, 2021―
Scheduled date for commencement of dividend payment:
Supplementary briefing materials on quarterly results:
Available
Quarterly results briefing:
None(Amounts are rounded down to the nearest one million)

1. Consolidated Financial Results for the Three Months Ended June 30, 2021
(April 1, 2021 to June 30, 2021)(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

%

12.3

4,707

170.5

5,136

100.6

2,744

114.4

7.4

1,740

48.4

2,560

49.8

1,279

40.5

million yen

Three months ended
100,546
June 30, 2021
Three months ended
89,546
June 30, 2020
(Note) Comprehensive income:Three months ended June 30, 2021 3,503 million yen (－%)
Three months ended June 30, 2020 (67) million yen (－%)

Net income per share

Diluted net income
per share

Three months ended
June 30, 2021
Three months ended
June 30, 2020

Profit attributable toowners of parent

Operating income

yen

yen

27.10

－

11.92

－

(2) Consolidated Financial Position
Total assets

Net assets

million yen

As of June 30, 2021
As of March 31, 2021
(Reference) Equity:

Equity ratio

million yen

334,099358,751
As of June 30, 2021
As of March 31, 2021%

231,543
231,323
226,587 million yen
226,389 million yen

67.8
63.1

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

End of2Q
yen

End of 3Q
yenYear-end
yen

Fiscal year ended
－
－
22.50
22.50
March 31, 2021
Fiscal year ending－
March 31, 2022
Fiscal year ending－
March 31, 2022
25.00
25.00
(forecast)(Note) Revision of dividend forecasts from recently announced figures: None

Total
Yen

45.00

50.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022
(April 1, 2021 to March 31, 2022)(% 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, 2022

million yen%

million yen%

million yen%

470,000

1.3

30,5001.2

32,0000.8

million yen%

Yen

21,000 (13.2)

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

* Notes:(1) Significant changes in subsidiaries during the period under review: None
(2) Application of specific accounting practices for preparing consolidated quarterly financial statements: Yes(3) Changes in accounting principles and changes or restatements of accounting estimates:
1) Changes in accounting principles due to revision of accounting standards: Yes
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):
June 30, 2021

108,325,329 shares

March 31, 2021

108,325,329 shares2) Total number of treasury stock at the end of the period
June 30, 2021

7,482,117 shares

3) Average number of shares outstanding
June 30, 2021

March 31, 2021

6,907,718 shares

during the period

101,250,306 shares

June 30, 2020

107,366,385 shares(Note) Total number of treasury stock includes the Company’s stock held by the Board Incentive Plan trust under theCompany’s performance-linked stock remuneration program for directors and executive officers.

*
-

*
-

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

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

Table of Contents: Supplementary Materials

1. Overview of Operating Results and Financial Position

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

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

P. 3(3) Future Outlook

P. 3

2. Notes to Summary Information (Explanatory Notes)

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

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

P. 3

Statements
3. Consolidated Quarterly Financial Statements and Notes

P. 4(1) Consolidated Quarterly Balance Sheets

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

P. 6(3) Notes to Consolidated Financial Statements

P. 8(Notes on going concern assumption)

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

P. 8(Changes in accounting principles)

P. 8

-1-

1. Overview of Operating Results and Financial Position(1) Overview of Operating Results for the Period under Review
During the first three months of the current consolidated fiscal period (from April 1, 2021 to June 30, 2021),
the Japanese economy suffered from the prolonged impact of the novel coronavirus disease (COVID-19).
Progress has been made on the roll-out of the vaccine, which should lead to the normalization of economic
activity. However, the state of emergency has been redeclared and measures to prevent the spread of the virus
has been restated in certain regions such as the Tokyo Metropolitan area, in response to the spread of the newvariant. It is unclear as to when COVID-19 will be contained, and the outlook on the economy remains uncertain.
As for the business environment for the MIRAIT Group (“the Group”), some projects have been delayed due
to voluntary restraints and disruptions in the delivery of construction materials in the short-term. However, in themedium- to long-term, fifth-generation mobile telecommunication (5G) services are expected to expand, and thedemand for new ICT solutions should be boosted due to the penetration of online classrooms/ teleworking anddigital transformation (DX). Meanwhile, the government’s “green growth strategy”, including initiatives such as
the use of renewable energy to achieve a carbon-free society, should require the building of more robust digital
infrastructure.
Against this backdrop, the MIRAIT Group has continued business operations as a trusted “Comprehensive
Engineering and Services Company” that builds and protects social infrastructure that is essential to communities,
while taking appropriate measures to prevent the spread of COVID-19. At the same time, the Group is
endeavoring to enhance corporate value and to achieve sustainable growth through initiatives to elevate theefficiency of business operations, including those to promote workstyle reforms and DX.
During the first three months of the current consolidated fiscal period, the NTT business witnessed an increasein optical fiber work on the back of government-supported projects to expand advanced wirelesstelecommunication networks. In the Multi-carrier business, mobile-related work increased as plans to build 5G
base stations were brought forward with the penetration of 5G-related services. The Group also strived to winlarge-scale electrical construction projects in the Environmental and Social Innovation business, and to increase
orders and sales primarily through sales of goods such as construction materials and wins in LAN/ PBX work in
the ICT Solutions business.
Moreover, the group companies under MIRAIT Corporation were reorganized effective July 1, 2021, in aneffort to accelerate the transformation of the business structure in response to changes in the businessenvironment.
As for the consolidated financial results for the first three months ended June 2021, orders received increased
by 22.1% year-on-year to 133,242 million yen, net sales increased by 12.3% year-on-year to 100,546 million yen,operating income increased by 170.5% year-on-year to 4,707 million yen, ordinary income increased by 100.6%
year-on-year to 5,136 million yen, and net income attributable to owners of parent increased by 114.4% year-onyear to 2,744 million yen.

-2-(2) Overview of Financial Position for the Period under Review
Total assets at the end of the first quarter of the current consolidated fiscal period amounted to 334,099 million
yen, a decrease of 24,652 million yen from the end of the previous fiscal year. This was mainly due to the decreasein accounts receivables including those from completed construction contracts and other.
Total liabilities decreased by 24,872 million yen to 102,555 million yen, mainly due to the decrease in accounts
payable for construction contracts.
Net assets increased by 220 million yen to 231,543 million yen due to 2,744 million yen in net income
attributable to owners of parent recorded during the quarter, which more than offset the dividend payment of
2,291 million yen and the share repurchase of 1,104 million yen.
As a result of the above, the equity ratio at the end of the first quarter stood at 67.8% (compared with 63.1%
at the end of the previous fiscal year).
(3) Future Outlook
The consolidated financial results forecast for the fiscal year ending March 31, 2022, as announced on May
14, 2021, remains unchanged.

2. Notes to Summary Information (Explanatory Notes)(1) Changes in Important Subsidiaries during the Period under Review
Not applicable.
(2) Application of Specific Accounting Practices for Preparing Consolidated Quarterly Financial Statements
Calculation of tax expense
Tax expenses are calculated by reasonably estimating the effective tax rate after applying tax effectaccounting against income before income taxes for the current fiscal year, including the first quarter ended
June 30, 2021, and then multiplying income before income taxes for the three months with the said estimatedeffective 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, 2021

Three Months Ended
June 30, 2021

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

44,76454,608

147,605

103,388

30,7895,460

32,744
5,198

4,902
(26)

9,787
(0)

233,494

205,726

Buildings and structures, net
Land38,54632,891

41,74033,384

Construction in progress
Other, net

5,602
9,614

4,123
9,424

Total property, plant and equipment

86,65588,673Customer related assets
Goodwill

2,523
3,094

2,609
3,106

Software
Other

1,620
311

1,911
305

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

Intangible assets

Total intangible assets

7,549

7,932

Investments and other assets
Investment securities

22,562

22,300Retirement benefit asset
Deferred tax assets

2,988
2,504

3,910
2,620

Leasehold and guarantee deposits
Other

1,425
1,798

1,401
1,770

Allowance for doubtful accounts

(227)

(235)

Total investments and other assets

31,052

31,766125,256

128,372

358,751

334,099

Total non-current assets
Total assets-4-

(Millions of yen)
Fiscal Year Ended
March 31, 2021

Three Months Ended
June 30, 2021

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

63,213
186

47,649186

Income taxes payable
Lease obligations

8,086
3,347

1,040
3,369

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

3,150
1,299

3,871
1,112

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

8,023
101

4,266
40

Provision for warranties for completed construction
Other

10
15,59911
16,029Total current liabilities

103,018

77,579Long-term accounts payable – other
Lease obligations

1,324
6,592

1,323
6,250

Deferred tax liabilities
Deferred tax liabilities for land revaluation

1,139
41

1,137
41

122
310

93
348

13,974
189

14,927190

Non-current liabilities

Provision for retirement benefits for directors (and other officers)
Provision for share-based compensation
Retirement benefit liability
Asset retirement obligations
Other

714

663

24,40924,976

127,428

102,555

Share capital
Capital surplus

7,000
69,571

7,000
69,571Retained earnings
Treasury shares

155,239(10,888)

155,812(11,993)

Total shareholders' equity

220,922

220,389

4,660

4,472

Total non-current liabilities
Total liabilities
Net assets
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-

(98)

(98)

(1,126)
2,031

(196)
2,020

5,466

6,197

4,934

4,956

231,323

231,543

358,751

334,099

(2) Consolidated Quarterly Statements of Income and Comprehensive Income
Three Months Ended June 30, 2021
(Millions of yen)Three Months Ended
June 30, 2020Three Months Ended
June 30, 2021

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

89,54680,260100,546
87,485Gross profit on completed construction contracts

9,286

13,061

Selling, general and administrative expenses

7,546

8,353

Operating profit

1,740

4,707

21

13

Dividend income
Foreign exchange gains

556
198

366

Surrender value of insurance policies
Share of profit of entities accounted for using equity method

16

Non-operating income
Interest income

－
14
6

Other

－
125

113

Total non-operating income

917

514

Interest expenses
Share of loss of entities accounted for using equity method

11
60

10

Foreign exchange losses
Other

－
25

－
36
37

Total non-operating expenses

97

85

2,560

5,136

Gain on sales of non-current assets
Gain on sales of investment securities

2
473

7
19

Total extraordinary income

476

26

Loss on revision of retirement benefit plan
Loss on sale of non-current assets

－
0

34
22

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

54
5

1

Other

17

－
33

Total extraordinary losses

77

91

Profit before income taxes

2,959

5,071

Income taxes

1,622

2,305

Profit

1,337

2,765

1,279
57

2,744
21

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses

Profit attributable toProfit attributable to owners of parent
Profit attributable to non-controlling interests-6-

(Millions of yen)Three Months Ended
June 30, 2020
Other comprehensive income
Valuation difference on available-for-sale securities(197)

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-controlling interests-7-(1,183)(23)

Three Months Ended
June 30, 2021

(188)
925
(11)

(0)

11

(1,405)

737

(67)

3,503

(111)
43

3,475
27

(3) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes on significant changes to shareholders’ equity)
On May 14, 2021, the Board of Directors of the Company resolved to repurchase its own shares in the market
pursuant to Article 156 of the Companies Act of Japan, applied pursuant to Paragraph 3, Article 165 of theCompanies Act, following which the Company purchased 573,800 shares of its common stock of an amount of 1,104
million yen. As a result, the Company’s treasury stock increased by the same amount. The total amount of treasury
stock at the end of the first quarter of the current consolidated fiscal period was 11,993 million yen.

(Changes in accounting principles)(Application of Accounting Standard for Revenue Recognition)
The Company has adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29 dated
March 31, 2020) and other relevant standards from the beginning of the first quarter of the current consolidated
fiscal period. Under the new accounting policy, revenue is recognized as the amount expected to be received in
exchange for promised goods or services when the control of such goods or services is transferred to the customer.
Major changes resulting from the application of the “Accounting Standard for Revenue Recognition”, etc., aredescribed below.

(1) Performance obligations satisfied over a certain period of time
The Company previously applied the percentage-of-completion method for construction contracts in which
the outcome of the portion of the construction to be completed at the end of the consolidated fiscal year wasdeemed to be certain. The completed contract method was applied for other construction contracts.
Under the new accounting policy, revenue is recognized over a certain period in accordance with the progresson satisfaction of performance obligations, with the exception of small and short-term construction work. If the
progress on satisfaction of performance obligations cannot be reasonably estimated, but costs incurred to satisfy
such performance obligations is expected to be recovered, revenue is recognized within the scope of actual costs
incurred.

(2) Transactions deemed to be agency transactions
The Company previously recognized the total amount received from customers in exchange for goods forcertain sales transactions. Under the new accounting policy, revenue for sales transactions in which the Company
acts as an agent is recognized as the net amount after deducting the amount that is paid to the supplier of such
goods from the amount received from customers.

In accordance with the transitional treatment stipulated in the proviso of Article 84 of the “AccountingStandard for Revenue Recognition”, retained earnings as of the beginning of the first quarter of the current
consolidated fiscal period has been adjusted to reflect the cumulative effects of retrospectively applying the new
accounting policy to periods prior to the beginning of the first quarter of the current consolidated fiscal period,-8-and the new accounting policy is applied from the said balance.
As a result of the application of the new accounting policy, net sales for the first three months increased by
4,417 million yen, cost of sales by 4,198 million yen, and operating income, ordinary income and profit before
income taxes by 219 million yen. Retained earnings at the beginning of the period under review increased by 63
million yen.
In accordance with the transitional treatment stipulated in Article 89-2 of the “Accounting Standard for
Revenue Recognition”, the Company has not reclassified the statements for the previous consolidated fiscal year
to conform to the new accounting policy. Furthermore, in accordance with the transitional treatment stipulated in
Article 28-15 of the “Accounting Standard for Quarterly Financial Reporting” (ASBJ Statement No.12 dated
March 31, 2020), the Company has not presented the breakdown of revenue derived from contracts withcustomers for the first quarter of the previous consolidated fiscal period.

(Application of Accounting Standard for Fair Value Measurement）
The Company has adopted the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30
dated July 4, 2019) and other relevant standards, from the beginning of the first quarter of the current consolidated
fiscal period. In accordance with the transitional treatment stipulated in Article 19 of the “Accounting Standard for
Fair Value Measurement” and Article 44-2 of the “Accounting Standard for Financial Instruments (ASBJ Statement
No. 10 dated July 4, 2019), the new accounting policy set forth in the “Accounting Standard for Fair Value
Measurement”, etc., is applied into the future. This has no effect on the quarterly consolidated financial statements.

-9-