Corporate Report

Building and Maintaininga Bridge to the Future
Future.
e.

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

http://www.mirait.co.jp/

The MIRAIT Group —Comprehensive engineering & services firm

CONTENTS

Group Overview

Overview of MIRAIT Holdings

03

Our Business

Date of establishment: October 1, 201005

Message from the CEO07

New Mid-term Management Plan

25

Protecting the Environment

Capital: 7 billion yen
President and Chief Executive Officer: Masatoshi Suzuki

09

CSR of the MIRAIT Group27

Occupational Safety and Health28

Contribution to Local Communities

29

Corporate Governance andInternal Control

31

Financial Data

33

Non-financial Data

34

Shareholders

Building and Maintaining
a Comfortable Society.

Total outstanding shares: 85,381,866
Stock Listing: 1st Section of Tokyo Stock Exchange (Security code: 1417)

Building and Maintaining
the Trust of Society.

Corporate Report

Ratings: Rating and Investment Information, Inc. (R&I) A-

12

Building, Maintaining and Renewing
Society’s Infrastructure

16

Making a New Social Systems

Japan Credit Rating Agency, Ltd. (JCR): A
Location: 5-6-36, Toyosu, Koto-ku, Tokyo

Building and Maintaining Safe,
Reliable Technical Capabilities
for safety and security

Number of consolidated subsidiaries: 53 (as of March 31, 2017)
Number of employees (consolidated): 9,022 (as of June 30, 2017)
End of fiscal year: March 31

19

Enhancing Customer Service

21

Human Resources Development

23

Diversity

List of Group Companies▶ MIRAIT Corporation▶ MIRAIT Technologies Corporation

M’s Frontier Corporation

AST-ENG Corp.

DAIMEI TECHNO CO., LTD.

Lapisnet Co., Ltd.

KOKKO SYSTEMS CO., LTD.

COTONET ENGINEERING Co., Ltd.

Tohoken System Engineering Corp.

Nara Construction Co., Ltd.

Meisei Correspondence Co., Ltd.

Ligare Co., Ltd.

Nisshin Tsuko Co.,Ltd.

Agility RISE Co., Ltd

DAIMEI NETWORK Co.,LTD.

Comlead Co., Ltd.

DAIMEI TSUSAN CORP.

Nishinihondenko Corporation

SINKO ELECTRIC CORP.

GRAND CREATE CO.,LTD.

MIRAIT-X Corporation

KATAKURA CONSTRUCTION Co., Ltd.

TODENTSU Access Corporation

MIRAIT Information Systems Co., Ltd.

TODENTSU Network Co., Ltd.

ACTIS Corporation

Nissetsu Co., Ltd.

Practical Solutions Inc.

Okisokou Co., Ltd.

MIS Kyushu Corp.

Libnet Co., Ltd.

Fucom Corp.

TIMETEC Co., Ltd.

Kinki Denki Corp.

Trust System Corporation

MIRAIT Technologies Australia Pty. Limited(Australia)

HOPE NET Co., Ltd

MIRAIT Technologies Myanmar Co., Ltd.
(Myanmar)Nippon Sangyo Corporation
Nihon Toyocomu Corporation

MIRAIT PHILIPPINES INC. (Philippines)
DAIMEI SLK (PRIVATE) LIMITED (Sri Lanka)▶ Lantrovision(S) Ltd (Singapore)(20 Lantrovision(S) Ltd group companies)

Editorial Policy
This report outlines the policies, plans andachievements of the MIRAIT Group toward
creating a sustainable society. The MIRAITGroup seeks to proactively deal with various
social issues. This report is divided into
sections based on three themes: “Building and
Maintaining a Comfortable Society” (forBusiness Operations), “Building and
Maintaining Safe, Reliable Technical
Capabilities” (for Product Quality, Occupational
Safety and Human Resources), and “Building
and Maintaining the Trust of Society” (forEnvironmental Protection, Local Communities,
and Governance).
Scope of Organization
In this report, we outline the philosophy andachievements of the CSR efforts of the MIRAITGroup as a whole. Please note that withregards to digital information, performance
figures published is within the parameters ofthat which can be ascertained at this time as
indicated in the text or in supplementary
notices.

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

Corporate Information
http://www.mirait.co.jp/company/
Business Information
http://www.mirait.co.jp/service/
IR Information
http://ir.mirait.co.jp/index.html
Reporting Period
Fiscal Year 2016
(April 1, 2016 to March 31, 2017)(note: certain portions refer to activities from both
before and following the above-mentioned period)

Guidelines Referenced
GRI Sustainability Reporting Guidelines (G4)ISO26000 (Guidance on Social Responsibility
Date of Publication
September, 2017

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

including consolidated subsidiaries and overseas subsidiaries (as of August 31, 2017)01

Corporate Report CSR 201702Communications Infrastructure

Mobile Network

We handle creation of networks – fromdesign and planning throughconstruction and maintenance – toachieve high-speed, large-capacity
broadband communication.

Responding to an age demanding everincreasingly high speeds and larger
capacity mobile communications.
We provide services for development
and construction of wireless basestations to meet the needs of mobile
communication to support developmentof applications with greater diversity andfunctionality.

129- Construction, maintenance, operation ofbroadband communications facilities

3
6- Fixed-line communication facilities fortelecommunications
carriers, CATV construction
and other services- Construction, maintenance, and operationof mobile communications facilities

Our Business
The social responsibility of the MIRAIT Group is to create systems and other means to meetsocial needs for greater convenience, and to safeguard the safety of people’s lives by making
the most of our experience and technological expertise cultivated over many years.

Building and Maintaining

EV

EV

22

ICT Solutions

Environmental andSocial Innovation

Air-conditioning Equipment

We provide ICT infrastructure
construction ideal for on-site, highquality business solutions.
- Data-based facility construction- Voice-based communications facility
construction

Contact Center

Office LAN / WAN Equipment

Data Center

Wireless Access Point

Surveillancecamera solutions

Solar Panels- Development of ICT systems

LED Street Lighting- Other related systems

EV charging
stationEV

Telecommunication and power supply
facilities are essential social
infrastructure supporting both people’s
daily lives and industry. We constructhighly reliable infrastructure to sustain
these essential utilities.
- Construction, maintenance, and operationof facilities for environmental conservation
and alternative energy- Development of social infrastructure

Power Supply
変電設備

System and Software Design

03

変電設備

- Construction, maintenance, and operationof power supply and air-conditioning
facilities for companies

IP-PBX / FMC

Corporate Report CSR 201704

Message from the CEO

Building and maintaining now, a bridge into
the future, anticipating demands of modern
society in a changing world with the technicalcapabilities as a comprehensive
engineering & services firm

Facing a future that is not simply an
extension of what has gone before
The MIRAIT Group company name comes from a
combination of the Japanese word for the future:“mirai”, and the abbreviation used for information
technology: “IT”. Domains such as information
communication and electrical equipment engineering –
unseen by the general public – face an unknowable
future that is not simply an extension what has gone
before. It is our unshakeable mission to answer thedemands of society in real form by constructing
necessary facilities and systems.
In April, 2017, the MIRAIT Group announced a new
mid-term management plan. With the experience from
our achievements thus far as a foundation, we seek tochallenge new frontiers – with our orientation clearly
indicating the new domains that we will proactively
develop.
This frontier spirit is part of our group’s positive
tradition started with its establishment. Since ourestablishment, the MIRAIT Group business operations
were formed to respond to the needs of ourcustomers, the telecommunications industry. We
started out from communication facilities engineeringwith the laying of landlines. In recent years, in various
industries and for firms of different sizes, universities
and other educational institutions, and many forms of
local governments, responding to our customers’
needs and issues, we are developing new ICT
solutions, environmental and social innovations as we
foster other new domains.
Going forward, with our technological experience asa foundation, we will undertake new approaches. The
central thought behind our developing enterprises is05

not to undertake tasks with prescribed ways andmeans, but rather working with our customers tocreate new methods – one by one. The sales ratio ofthese new fields became approximately 40% overall infiscal 2016, but our new mid-term management plan
ending in fiscal 2020 anticipates a ratio of 60%.

Committing ourselves to rising social
demands
The three “D” major trends in global social change thatdemand attention are digitalization, decarbonization anddemographic change. Exchange of information has
become greatly simplified by digitalization. In recent
years the volume of data traffic that is circulating has
increased explosively. Furthermore, on one hand,issues with energy and environmental problems having
gravely increased and on the other, in many countries
aging of the population is advancing. In Japan there has
been a decrease in the birthrate. With the nationwide
aging of the social infrastructure that was developed in
the post-war period, issues of city planning going
forward have surfaced.
With these major trends, with new problems havealso given birth to new possibilities. Particularly tacklingsolutions to global environmental problems will leaddirectly to contributions for a sustainable society.
We continue to be confident that the engineering
capabilities garnered in the MIRAIT Group’s coretechnologies – ICT, electrical facilities and the fields ofenergy and the environment – will be decisive factors inthe solution of these social problems. Combining our
experience and wide-ranging engineering strengths, the
MIRAIT Group, boasting comprehensive engineeringand services, will provide fully transformed services. In

MIRAIT Holdings Corporation
President and Chief Executive Officer

Masatoshi Suzuki

a society with ever-accumulating issues as we arebeing put to the test, it is the MIRAIT Group’s
determination to resolutely take up the challenge tomake contributions in these times when the true value
is called into question.

Making the most of diverse talent fordiverse viewpoints
To get ahead of the demands of society, at the MIRAITGroup, we proactively expand our activities into theoutskirts of the task at hand. One example is the“smart buildings” and “smart towns” that are being
developed by our customers in the telecommunications
and construction industries. MIRAIT Group’s
experience and expertise in ICT, electrical and energy
fields mean more than adequate capabilities incommunication facilities construction and we can makehighly efficient contributions to new social projects. A
foundation of human resources with extensive
technical capability, qualifications, and valued
experience is our essential understructure, and we willcontinue to promote and support growth and training of
our talented workers with purpose and intent.
Comprehending, appreciating the operations andprocesses of our customers and affiliated companies
are keys to successful development of new businessdomains. By studying those endeavors and providing
engineering from that viewpoint, construction
according to specifications, balancing costs and quality,
can be achieved. Cultivating a coordinated capability totake an extensive view, grasping the whole picture withthe market environment upswing that is expected as
we move toward 2020, we intend to make further
efforts necessary to polish our technologies andacquire greater performance.
Moreover, for the potential of our human resource
foundation to be fully manifested, it is vital that theirdiversity and wide range of viewpoints be exploited.
One individual can carve out an all new work method
and that work will, in turn, teach the individual. Throughnew endeavors, new connections with society areformed, and new possibilities open up. The MIRAITGroup provides social credibility and growth aid
packages to support such individual challenges. To fully
develop and exploit various capabilities we are pushing
to make an environment that encourages further
growth of our human resource base.

Moving forward with society as “YourCompany”
In the engineering field, successful completion with ahighly valued performance on one task leads to thenext project. The value of a job is judged on how well it
has satisfied the customer with its quality, ease ofunderstanding, and ease of use.
The MIRAIT Group succeeds through our close
relationship with society. Slow and steady, but
invaluable effort, the question comes down to whether
or not you have become a useful existence in the world– one that will be called on to play a role. Did we
consider all individuals concerned? We have always
placed great importance on this question.
This is what we mean when we say that we seek tobe "Your Company". Rather than simply being "ourcompany" existing for our own purposes, we aim to
conduct business to your benefit. We will strive forsustained growth from now on as a company trusted
by all of you.

Corporate Report CSR 201706

New Mid-term Management Plan
Under this plan we will continue to push the boundaries of our areas of business while transforming
our business model and increasing productivity.

Basic Policy
The management environment encompassing the MIRAITGroup is undergoing great change – on both the social
structure side and in the communications environment.
Social structure includes exonomic policies by the current
government administration to overcome deflation, to deal
with the decreasing birthrate and aging population, andtoward regional revitalization. Additionally, there are needs forboth social infrastructure reconstruction to correct aging, andconstruction of disaster countermeasures. In this context,
which also includes increasingly serious energy andenvironmental issues, all the more expectations fall on the
MIRAIT Group to make social contributions. Furthermore, thehosting of the 2020 Tokyo Olympics and Paralympics has
resulted in a strong social sense that this is an ideal
opportunity for infrastructure maintenance and restoration.
At the same time, in the communications environment,with the widespread popularization of smartphones andtablets with the shift to 5th generation (5G) large-scale,
high-speed communications, we are entering a new stage.
Diversification with the globalization of service is progressing,and IoT*-ization is also spreading quickly.
To proactively grasp opportunities in this external
environment and new growth markets, the MIRAIT Grouphas devised a new Mid-term Management Plan for the four
years starting in fiscal 2017 to reinforce both the corebusiness and the foundation of talented human resources.
While expanding the core business, we will also expect
benefits from innovations in the business model throughprofit consideration management and improved productivity.

- Popularization of Smartphones and Tablets(overcoming deflation, vis-à-vis decreasing birthrate andaging population, regional revitalization)- Diversification of Services(infrastructure deterioration, disaster countermeasures)- Globalization- Environmental and Energy Issues

Framework of IoT-ization for Tele-Communications Industry Market Division

2 Platforms

Data Centers, Cloud

2

Strengthening businessfoundation / Increasing
productivity- Efforts toward construction standardization and review of group formation methods- Promoting optimization through group synergy- Improving profitability through strengthening of the account system, and by thorough budget managementof individual construction projects

3

Strengthening the humanresources foundation- Reinforcing technical strength including qualification acquisition- Reinforcement of general engineering power in response to the expectations of the customer- Realization of vitality in the workplace through work-style reforms

4

Capitalization strategy /Returns policy- Maintaining a healthy financial standing- Achieving ROE of 8% or more
- Stable and continued dividends is the basic policy on shareholder returns- Regarding the total return ratio, with a target of 30% or more, decisions will be made after comprehensive
consideration of results and funding conditions

5

Changing corporate culture- Establishing the MIRAIT brand, aiming for higher productivity through reform, prioritizing safety and security- Promoting CSR by strengthening corporate governance and environmental stewardship- IoT-ization- 2020 Tokyo Olympics and Paralympics

Content distribution service- Aggressive development of frontier domains in environment/energy, IoT, and others- Expanding available price and quality variations corresponding to customer needs- Expanding business fields by making full use of a variety of technology capabilities, of our customer base,and of a nationwide operation structure- Increasing sales capabilities by promoting partnership strategies- Acceleration of Large-scale,
High-speed Communications (5G etc.)- Social Infrastructure Reconstruction

1 Service Applications

1

Expanding business
operations / Businessmodel innovation

Communications Environment Change- Governmental Fiscal Policies

Conventional ICT market

The challenge of businessmodel innovation in
response to diversificationof customer needs

Key Measures* IoT (Internet of Things) refers to innovations in connectivity of various devices
and products via the internet.

Business Environment
Social Structural Change

Expansion of core businesscorresponding to changes insocial structure andcommunication environment

Promoting businessadministration while securing
profits and aiming at theenhancement of the corporate
value and sustained growth as
a comprehensive engineering &services firm

Growing Markets due to IoT evolution (IoT Market)
Smart Cities

Healthcare

Smart Factories

Connected Cars

Measured by trends in the terminal layer

Business Targets

Fixed & Mobile network service
3 Network

Mobile network equipment
4 Key Devices

Fiscal 2016 results

Fiscal 2017 plan

Fiscal 2020 target(2016.4–2017.3)(2017.4–2018.3)(2020.4–2021.3)

Sales

283.2 bil. yen

310.0 bil. yen

340.0 bil. yen

Operating profit

10.0 bil. yen

12.5 bil. yen

17.0 bil. yen

5.2%

6.3%

8% or more

Fixed network equipment
LPWA

Semiconductors
Information terminals

5 Terminals
Home appliances / Office equipment

IoT service related equipment / materials
Smart Cities

Healthcare

Smart Factories

Connected Cars

ROE (return on equity)“2017 Information and Communication White Paper” Ministry of Internal Affairs and Communications

07

Corporate Report CSR 201708

CSR of the MIRAIT Group
Grounded in the "MIRAIT Way", the MIRAIT Group will carry out CSR activities from an intermediateand long-range viewpoint.

The MIRAIT Way

The basic point of view behind MIRAIT CSR

Promoting efforts toward CSR priority themes and issues

We have established an approach called the “MIRAIT Way”
so that all employees of the MIRAIT Group are brought
together as one. Each individual employee is urged to beaware and to put this approach into practice. The MIRAIT
Way is made of three principles: 1. the “basic management
policy” which lays out our meaning of existence and ourvalues; 2. the “conduct guidelines” that concisely outlines
proper daily behavior; and 3. the “corporate ethics charter”
outlining the basic policy regarding business ethics for all
officers and employees and giving concrete action guidance.
MIRAIT Group CSR activities are grounded in the "MIRAIT
Way" and will be developed in concrete ways.

Within the MIRAIT Group, three provisions are stipulated in
the basic point of view behind CSR in order to promotecoherent CSR activities.

While formulating our new the MIRAIT Group Mid-termManagement Plan, we reviewed all the mid-term CSR priority
points and issues. As a result of the process of evaluating thesignificant value of each issue, we have set “Building and
Maintaining a Bridge to the Future” as our motto andconsidering the level of social interest, we will advanceefforts aimed toward the three provisions of MIRAIT CSR.
Going forward into the next fiscal year, we will set guidelines
for each priority issue.

- The Basic Point of View behind MIRAIT CSR

1

We will become a firm able to cope with change by

Conduct
Guidelines

1. Always provide services that exceed expectations!
2. Further enhance safety and security through on-site capabilities!
3. Give concrete form to wisdom and courage with one step forward!
4. Make faithfulness and fairness the basis of work!
5. Build a bright future with strong teamwork!

extremely significant
very significant

1. We aim to be the leader in Japan as a "comprehensive engineering &services firm", with its core business in telecommunications – consistently
creating value and gaining the highest level of satisfaction and trust from ourcustomers.
2. By providing the highest-level service, placing the greatest emphasis on
safety and quality, we will contribute to an affluent and comfortable society.
3. As a firm that consistently respects humanity and by fulfilling our corporate
responsibilities, we will continue coexisting in peace and prosperity withpeople and society.

significant

We will develop a respected “brand” by contributing to themaking of a sustainable society as a company.

Importance toward Building a Sustainable Society

BasicManagement
Policy- CSR priority themes and issues “Building and Maintaining a Bridge to the Future”

responsiveness to social and environmental
2 incorporating
issues into the core business.

3

Architectureof theMIRAIT Way

We will win the long-term trust from stakeholders by ensuringthat business activities are conducted to respond to social
demands and expectations.

The guidelines will be debated and determined in meetingsof the MIRAIT Holdings Corporation CSR Promotion
Headquarters which is chaired by the corporation president.
As a comprehensive engineering & services firm and withour core technical expertise gained over many years, whileworking on solutions to various social problems, we intend tocontribute to the realization of a sustainable society as one
member of that society.

●●priority themes

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 in quality and human resources -• reinforcing technical development capabilities
and engineering strength / employee training• continuous improvement of quality and safety• diversity promotion• work method reform = work-life balance

Building and Maintaining
the trust of society- environmental conservation /local community / governance -• corporate governance• environmental efforts in business operations• issues of labor, safety, environment and humanrights in the supply chain
・revitalization of local communities

●

●

●

●

●

●

●

●

●

●

●

significant

extremely significant

very significant
Importance toward Business Continuity

Integrated Management Operation“The Corporate Ethics Charter of the MIRAIT Group”

Corporate
Ethics Charter

1. Basic stance on strict observance of laws and ordinances
2. Basic stance towards our customers
3. Basic stance towards shareholders and creditors
4. Basic stance towards suppliers and business partners
5. Basic stance towards employees and the workplace
6. Basic stance regarding society and the environment
7. Basic stance on protection of personal information, customer information andthe intellectual property

Business Ethics / Social Norms / Corporate Social Responsibility

09

Recognizing that safety, quality, and compliance are fundamental to
our business operations, the MIRAIT Group promotes occupationalsafety and health, product quality, environmental protection andinformation security in all fields and, starting in October 2012, put the“Comprehensive Management System (MS)” into effect. In addition
to establishing action policies covering the four areas mentioned
above, we have formulated a management system policy including
them and promoting steady but sure results under a “living”
management system for the entire group. We have determined toachieve CSR through CSR management as a pillar of our operations.

Management
System Policies
To achieve business operation
policies and targets, aneffective and efficient
integrated management
system has been formulated,
and we will strive operate,
maintain and reform thatsystem.

- All individuals involved in MIRAIT Group operations shouldboth be aware of the firm’s social responsibilities and strive
to improve manners, morals, and compliance.
- All companies and departments of the MIRAIT Group should,
in mutual cooperation, promote effective management
based on the “plan-do-check-act” (PDCA) cycle method.
- All individuals involved in MIRAIT Group operations should
participate in appropriate education and training regarding
this system to promote enhanced managerial strength.
- The effectiveness of this management system will be
subject to regular verification and continuous reform toinclude these basic policies.

Corporate Report CSR 201710

Building and Maintaining a Comfortable Society

Construction / Maintenance / Reform of Social Infrastructure
Building and Maintaining

a Comfortable Society

Going forward, a social infrastructure with higher reliability and greater functionality that is friendly to bothhumans and the environment is necessary.
In anticipation of “tomorrow’s needs”, the MIRAIT Group assumes responsibility – starting with the area oftelecommunications – for servicing, operating, safeguarding and updating the many forms of social infrastructureand for reconstruction after disasters.

Business Operations

P.12

Building and Maintaining

Safe, Reliable Technical
Capabilities for safety
and security
Safety and Quality
Human Resources

P.19

Building and Maintaining

The Trust of Society

Building Communications Infrastructure forTomorrow’s Way of LifeIn Japan, due to the declining birthrate, population decrease
has become a major issue. There is great concern about theresulting future loss of vitality in economic activity. New ICT,
including IoT (Internet of Things) and AI (Artificial Intelligence),
is expected to be breakthrough solutions to this issue. In a
future society, various items of daily life with be connected
on networks. Those networks will support all facets ofbusiness and lifestyles. Moreover, enormous amounts of
information (big data) are being accumulated. It is anticipatedthat solutions to diverse issues can be found throughanalyzing this data. Also, new products and services will becreated with the further development of ICT, and weanticipate improved productivity in business and the economy
in general. The MIRAIT Group will – with its accumulated
expertise in ICT technology – undertake the creation of ahigh-level ICT society.
In major cities all over Japan, the “undergrounding”(elimination of utility poles by putting wiring and cables
underground) is progressing with the purpose making cities
more disaster-proof. It will also serve to secure safe walking
space and to preserve cityscapes. Especially in Tokyo, in
preparation for hosting the Tokyo 2020 Olympic andParalympic Games, 100% undergrounding is planned for thecentral core area, but it is stillbehind progress being made inother major cities around theworld. The MIRAIT Group iscontributing to safe andpeople-friendly city planningwith a strong emphasis placed
Construction Work to Lay
on undergrounding operations.
Underground Cables (Electric Cable
Multipurpose Underground Duct)

Local Communities

100%
100%
95%
93%

London and ParisHong Kong
TaipeiGovernance

P.25

Singapore
Seoul

46%

Jakarta
Tokyo – 23 wards
Osaka City

35%
7%
5%

*based on 2015 figures from Japan's Ministry ofLand, Infrastructure, Transport and Tourism(extended road length)

From documents distributed by the First Undergrounding Promotion Committee progress report– Ministry of Land, Infrastructure, Transport and Tourism

11

When a disaster strikes, the MIRAIT Group undertakes thetask of safeguarding the communications network
environment. In August 2016, the typhoon “Lionrock” (No.
10) that struck Iwate Prefecture brought record-breaking
heavy rains all over northern Japan. In Iwaizumi-cho, Iwate,
one of the stricken areas, communication facilities weredamaged by flooding and telecommunication links were
temporarily unavailable. After removing large quantities ofdriftwood and debris and excavating bedrock with heavymachinery, the MIRAIT Group undertook the emergency
restoration of communications. As a result, in only 40 days
from entering the stricken area, we were able to restore andsecure the telecommunications environment.
Moreover, when a disaster strikes, the establishment of amobile network is the most important issue. Smartphones
and other mobile devices are portable, and in times of
emergency, text and voice messages, SNS, TV reception andother communication methods
provide a wide range offunctions. So that these mobile
devices can be most usefulwhen they are most needed, the
MIRAIT Group is focusing special
attention on building andmaintaining highly reliable mobile
Emergency restoration construction
networks.
in Iwaizumi-cho, Iwate Prefecture
Communication/Information Devices brought along during
Emergency Evacuation(%)

100 95.1
87.5
90

Overall

Advanced Users

80

Undergrounding Comparison of Japan with European, Americanand other Asian Cities

Environmental Protection

Concentrating not only on the immediate
response when a disaster occurs, but also on
disaster resistant infrastructure

70
60
50
37.5

40
30
20
10
0

18.8 20.4
13.0

12.5
2.5
s
ers
one
put
lph
m
l
o
e
c
c

12.3
1.2

0
lets

ios

tab

por

le
tab

rad

car

ios

rad

18.8

18.8

ble

ta
por

TVs

4.3
car

TVs

ers

oth

“Final Report of Findings regarding Telecommunications in time of Disaster”
from a Mitsubishi Research Institute, Inc. March 2012 report

Corporate Report CSR 201712

Building and Maintaining a Comfortable Society

Maintaining the mobile network to support
evolution in ICT and lifestyles
With the current popularization of smartphones, there has
been a diversification of mobile network usage – including theuse of SNS, viewing videos and so forth. In Japan, thesmartphone ownership ratio has already exceeded 70% of
the population, and the popularization of mobile devices is
expected to increase even further. The driving force behind
ICT development is the use of the wide variety of services
available to the smartphone user. The importance of mobile
devices will only increase from now on.
Supporting all of this activity is the mobile network’s ability
to connect to the Internet at any time. As smartphone use
and ICT services become even more widespread in the
future, the increase in communications data carried by themobile networks demands preparation of a higher-speed,large-volume wireless data communications environment.
The MIRAIT Group has developed a mobile network thatallows pleasant use – anytime, anywhere – with wirelesscommunications equipment planning, construction, testing,and maintenance.

Providing solutions to respond to new social
needs
Currently, all over the country, Wi-Fi (public wireless LAN)
environment expansion is being carried out at a fast pace. It
has been pointed out that where in Japan mobile networks
such as 3G and LTE are widespread, free Wi-Fi usage isbehind that provided in Europe, America, and Asia. Therefore,
the Ministry of Internal Affairs and Communications aims toestablish Wi-Fi environments in 30,000 locations nationwide
by 2020, having also a collateral benefit of disaster support.

Changes in mobile communications traffic(average monthly traffic over the past 3 years)
2,000

Depiction of emergency relief Wi-Fi environments over 3 years(Gbps)

100
1815.61,600
1562.51,200

1181.6 1216.9

800
400

671.7 729.9

822.4 871.8

969.0 1032.3

1323.2

90

(%)

100

■Installation Targets
fiscal 2018
5,000
locations

1636.71424.680

an increase of
approximately
1.4 times per year

70
60
50

0

40
Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar.
2014
2015
2016
2017

“Change in our country’s mobile communications (March 2017 data)” from the Ministry ofInternal Affairs and Communications website

13

One of the reasons that Wi-Fi environments are so
important includes securing a means of communication in
emergencies. The MIRAIT Group is actively engaged inestablishing Wi-Fi environments in parks and in public
facilities that are effective for communication in times ofdisaster or emergency.
Moreover, in order to properly host the increase in visitorsfrom overseas in conjunction with the Tokyo Olympics andParalympics a foundation needs to be built. So that visitors toJapan can enjoy their time here, increased construction offree Wi-Fi environments is being considered. One suggestion
is to set-up Wi-Fi environments in places along the routes
traveled by many visitors to Japan. As a part of this activity,
the MIRAIT Group is establishing Wi-Fi spots in subway
stations, convenience stores, and in educational and public
facilities all over the country.
The need for added security will also increase with theapproaching Tokyo Olympics and Paralympics. The MIRAITGroup provides solutions to cover a wide range of scenes forcrime prevention and surveillance cameras. With our longexperience with
telecommunications
construction, we also handle
installation of security cameras
on utility poles. Additionally, we
have experience installing LED
lights to shine around homes
and facilities at night amounting
to more than 94,500 security
lights and 4,600 road lamps (asof fiscal 2016).
Security camera installed on a utility
These examples demonstratepole

68
fiscal 2016
approx.
2,000
locationsfiscal 2017
6,000
locations

47

40
2016

2017

84
fiscal 2019
5,000
locationstargetapprox.
30,000locations

auxiliary: 2,000
autonomous: 4,000

2018

2019

2020

(FY)

“Explanation regarding progress of installation” February 2, 2017 Japan Tourism Agency of the Ministry ofInternal Affairs and Communications

potential solutions created by combining communications,networks, and ICT. We will continue tackling new social
needs by combining various technologies.

Construction of public infrastructure supporting
daily safety, security, and convenience
From June 2015 to January 2016, we installed an ILS(Instrument Landing System) at the New Chitose Airport. Thissystem enables safe landings in foggy and other bad weather
conditions. We expect that this installation will prevent morethan 100 flights from being canceled or delayed per year. The
East Japan Civil Aviation Bureau of the Ministry of Land,
Infrastructure and Transport recognized our high-quality
construction with no accidents or emergencies under difficult
construction conditions by awarding the “Excellent
Installation Builders Award”. (This was the second award
after the 2011 construction atHaneda Airport.)
These are just examples of
how the technical expertise of
the MIRAIT Group is put to use
in public infrastructure andsupports safe andGlide path antenna showing thepeople-friendly city planning.
descent course (altitude)

Contributions to establishing reliability in local
communities overseas
Starting in the 1970s, the MIRAIT Group has constructed
telecommunication facilities in more than 90 countries,
worldwide. We have applied the technology, experience, andknow-how gained over the years in Japan to the installation of
infrastructure in many other countries.
The level of internet coverage is lower in Myanmar thanother Asian countries, but decisive investment is being madein broadband integrated network infrastructure construction.
The MIRAIT Group started a project to lay optical fiber cablethroughout the country in Myanmar in February 2015. In
February 2016, we established the MIRAIT Technologies
Myanmar Co., Ltd. to strengthen local construction
capabilities and for expansion of business opportunities. The
project was carried out not just from Japan, but also incooperation between the local corporation and the Philippine
cable company, MIRAIT PHILIPPINES INC. As of March 2017,
2,700 km had been laid, and installation construction was still
underway as of July 2017. In areas of frequent flooding, overa total underground installation section of 400 km, 120 km ofthat – nearly a third of the total –was damaged by flooding, but
despite that, construction wascompleted quickly. Additionally, inthe ancient city of Bagan, we
received a high evaluation fromthe Agency for Cultural Affairs
because we undertook
construction while devising sevendifferent methods of construction
for protection of culturalproperties. This project not only
created local employment
Optic fiber installation in Myanmar
opportunities, but it also
contributed to cross-cultural communication and mutual
understanding through the collaborative work.
In Australia too, optic fiber related construction is being
carried out in earnest by MIRAIT Technologies Australia Pty.
Ltd. for telecommunications infrastructure. In 2016 we were
entrusted with a large-scale order from the major domestic
Australian telecommunications carrier for line renewal in
15,000 locations. While reinforcing our management baseand securing our product quality standard, we are working
toward higher credibility, and with business expansion inAustralia and elsewhere, we are pushing forward our global
business development.
Going forward, in all overseas areas, we will conduct
communications infrastructure construction business deeply
rooted in the local community thereby contributing to eachcountry or region’s ICT environment installation andenhancement of functionality.

Broadband Subscribers and Propagation Rate in Myanmar
20(billion Yen)

0.35

(%)

0.40

■Number of Broadband Subscribers■Broadband Propagation Rate

0.27

15
0.18

10
0.12
5

0.20

19.0
14.4

0.10

9.5
0.04

0

0.30

6.4

2.2
2011

0
2012

2013

2014

2015

(FY)

“The Condition of World Information Communication” from the Ministry of Internal Affairs
and Communications website

Corporate Report CSR 201714

PROJECTREPORT

Building and Maintaining a Comfortable Society

Making New Social Systems
Unprecedented approaches are necessary for the realization of a sustainable society and resolution of theissues facing Japan.
From the perspective of a comprehensive engineering & services firm, the MIRAIT Group build new social
systems – one step at a time.

Fully utilizing acquired technical know-how for improved
city function by expanding cable undergrounding
In Tokyo, “undergrounding” (utility cable and electric
wiring tunnel construction) is proceeding at a fast pacein anticipation of the 2020 Tokyo Olympics andParalympics. Elimination of utility poles throughundergrounding will both improve the urban landscapeand be indispensable to city anti-disaster measures
such as earthquakes and typhoons against utility polecollapse. This vital infrastructure maintenance will
ensure a safe and comfortable passage in addition to
improving city functions.
The MIRAIT Group has carried out much of thismultipurpose cable construction and is confident in our
technical expertise accumulated over many years ofexperience. We believe that the installation along
Meguro-Dori street (in Tokyo’s Meguro and Setagaya
Wards) demonstrates how our accumulated know-how
can be put to productive use.
Care for neighborhood residents is very important inconstruction in the central areas of Tokyo. Because of
traffic conditions, construction is carried out usually atnight and the sections under construction border on
housing areas. Especially since work must be done underthese sorts of special conditions, prior explanation to theneighboring residents is essential. When explaining theconstruction, once we have pointed
out that the mission ofundergrounding installation is fordisaster prevention and for safety
and comfort in addition to tourism
and beautification, most of theresidents kindly understood, but wehave also gotten stern opinions on
occasion. When that has occurred,

we had repeated communications with the residents
holding the harsh views. By sincerely stating that theconstruction is essential for improving city functions inTokyo and that measures would be taken to reduceinconvenience, in the end, we have been able to reachan understanding. The idea that “High-quality
construction work can be carried out only with good
mutual relations with local residents”, shared by all
those concerned with the work – and through teamwork– that quality work can be done.
The main stages of this construction work were to
excavate the existing roadway and to bury undergroundthe ducting carrying the cables and the special parts
that will act as connecting points. In the same area,buried underground are pipes for water, sewage, andgas – lifelines for other operators. When excavating, itis necessary to grasp their precise undergroundlocations. Surveys to understand undergroundconditions and conferences with the water and sewage
bureau and the gas company are held beforehand, andthorough safety checks are made during excavation.
These are proper and natural steps for a construction
company, but they do prevent equipment accidents.
Striving to improve my total management skills, not onlyin the technology of construction
as a whole, but also the
management of these safetyissues and follow-through with theneighborhood residents, I hope toplay an important role as the Tokyo
undergrounding construction
accelerates.

MIRAIT Technologies
Corporation
NTT Business Unit
Civil Works Business DivisionTokyo Civil Works Department

Hiroshi Kikuchi

Next generation energy so that we can pass abeautiful natural environment on to the future

Installing electric vehicle charging stations inmore than 1000 locations nationwide

Japan’s energy self-sufficiency is less than 10% and it relies
on imported fossil fuels for generating electricity. This pattern
was only strengthened after the East Japan great earthquake
disaster of 2011. It has been said that Japan’s energy
circumstances are worse even than during the first oil shock(1973). The problem of energy is not just an issue for Japan; it
is a worldwide problem as we see in efforts to deal withclimatic change and depleting crude oil reserves. Seeking tofind ways to break through these difficulties, the MIRAITGroup is diligently at work on sustainable next-generationenergy business.
One possibility is utilizing natural energy by building solar
and wind power systems.
With regards to solar energy production, we areundertaking the planning, construction, maintenance andoperation of facilities ranging from large scale "mega-solar"
plants to household power storage systems. Particularly withthe revision of the FIT * regulations in April 2017, inspection
and maintenance has gained particular importance. The
MIRAIT Group places special emphasis on O&M business,
assigning a chief engineer for operation monitoring, safety
checks, and emergency response maintenance.
In addition, we are making new steps into the field ofwind-power generation facility construction. Construction of“Kahoku Generator No. 1” was completed in July 2016 in
Kahoku City, Ishikawa Prefecture as commissioned by acustomer in the renewable energy generation industry. We
expected further growth in demand from next-generationenergy businesses in the future. The MIRAIT Group isdiligently working on new technological fields to aid in theeffort to pass on a beautiful natural environment to the future.

Electric vehicles and hybrids – dissemination is increasing as
elements of an ecological, “green” mobility system. The
spread of these next-generation vehicles is an important
aspect not only as a countermeasure to the energy problem
but also for strengthening the automotive industry. The“Japanese Revival Strategy – 2015 Revision” cabinet council
decision of 2015 calls for an increase of next-generation
vehicles sales to ratio of between 50 and 70% of all vehicles
by 2030.
An infrastructure for charging these next-generation
vehicles is essential. In the context of the high-paced
progress of charging station infrastructure construction
advances, backed by large-scale assistance programs thatstarted in 2013, there are currently charging facilities installedat more than 7,000 locations. The MIRAIT Group handles
comprehensive management of civil engineering,
construction, power, telecommunications and othertechnologies needed for these charging stations, providing
total services from planning to installation and maintenance.
To date, we have installed 1,000 quick charging facilities in
expressway service and parking areas in addition toconvenience stores, supermarkets, and other locations. One
EV quick charging station is installed at the Michi-no-Eki(roadside station) Hota Elementary School in Chiba
Prefecture. This facility is a roadside station that utilizes adecommissioned elementary school to house stores,
restaurants, overnight accommodations and so on while
keeping the atmosphere of a school. Adding increased value
to this popular and unique endeavor, visitors who are electricvehicle users are able to charge their vehicles while enjoying
their shopping experience, bring about a synergistic benefit.

*FIT (Feed-in Tariff Scheme) is a special measures law covering the procurement of
renewable energy electricity by electric companies.

Project Outline-Project nameCommon Cable Duct
Installation Construction-Site Location
Meguro and Setagaya Wards,
Metropolitan Tokyo-Client (Contracting Party)
Tokyo (Agency ordering: NTTINFRANET CO., LTD.)-Main Contractor
MIRAIT Technologies
Corporation
Attaching wind-power generator blades to the generating mechanism

15

The EV quick charging station at “Michi-no-Eki Hota Elementary School”

Corporate Report CSR 201716

PROJECTREPORT

Building and Maintaining a Comfortable Society

Aspiring to a “Smart Life” balance byharmonizing work, life, and the environment

Providing services to make Japan an even more
attractive tourist location

When considering the meaning of the words, “sustainable
society”, one cannot disassociate the lifestyles of those living
there. The MIRAIT Group aims for a “smart life” society withaffluent lives in harmony with nature.
Take, for example, recent attention given to “work stylereform” in the backdrop of a recent decreasing birth-rate,
population reduction, and globalization. Corporations today
are expected to improve business productivity while dealing
with work style diversity and hiring systems. The MIRAITGroup offers solutions to organizations wrestling with theseissues.
“Casting Tables 3” is a system for precise humanresources management and improved call center operation.
The operator submits desired work hours and days off, and ashift list is prepared adapted to individual lifestyles.
“ImageGate®” is a system that uses smart devices to aid in
operational efficiency. By digitalizing technical drawings andtransferring them to a smart device – a portable tool – duties
such as surveys, inspections and reports can be carried out
simply and clearly. Additionally, because the tool of adigitalized drawing can be sent via the Internet, the need tocarry around paper drawings is eliminated. This is very usefulon construction sites, or for shelf-stocking control insupermarkets, or when drawings are used in businessnegotiations. And, starting in 2015 testing began aimed atpractical application using the 280MHz band of a wirelessnetwork for remote, automatic water meter reading. This
technology is a combination of the “FlexNet TM” wide area,
low power network capable of carrying vast quantities ofdevice data together with smart water meters enabling
consolidated remote meter reading from great distances. The
need for individual readings at each dwelling is eliminated andmakes more efficient operations inmountainous areas possible. It isalso hoped that this technology will
be useful in water leak detection
and in services to monitor elderly
people. The favorable outcome ofthese tests is the result ofcooperation several parties – thewater company,
telecommunications industry andproduct manufacturers.

The Japanese government is pushing forward various
measures aimed at making the country an “advanced nation”
for tourism. Particularly high expectations are held for the
economic revitalization resulting from inbound tourist
consumption. The target for visitors to Japan in 2020 is 40
million people with 8 trillion yen spent domestically. In 10
years after that 60 million visitors and consumption of 15
trillion is targeted. An important challenge is that thesemeasures do not merely urge foreign visitors, but that thelevel of repeat visits is increased. With that in mind, the
MIRAIT Group has developed a service aimed at providing
better service to visitors from overseas.
“PONTANA” is a digital information stand that distributes
digitalized pamphlets and such that would typically be printed
on paper. Designed for use in large-scale commercial andpublic facilities, it can hold up to 450 different kinds ofdigitalized pamphlets. The user needs only to tap on thescreen to transfer the data to a smartphone or other mobile
device to carry with him.
In May 2016 at the G7 Ise-Shima Summit held in Mie
Prefecture, PONTANA information service tool was installedat the international media center (IMC) annex of the Mie
information building. Multilingual contents were provided formany members of the overseas media fulfilling a role inproviding information regarding Mie Prefecture’s charm.
Another digital information distribution service is“ee-TaB*®” used in hotels and other accommodation
facilities. Using a tablet installed in the room, a guest canobtain information regarding the facility or tourist locations in
the area by receiving multilingual voice messages andanimation. They have been installed nationwide in 20
accommodation facilities targeting visitors from overseas.
Utilizing technological resources
cultivated over the years and quickly
recognizing tomorrow’s needs, the
MIRAIT Group is formulating
systems for implementation.

Trail-blazing new possibilities in PV (photovoltaic) solar
power generation systems with new innovative techniques
in a consolidated structure together with powerand construction work
On March 31, 2017, construction on the F Nagara PV
solar generation system was completed. This systemcovers approximately 20 thousand M2 of land andachieves power production of 2 megawatts. The
inception of this project for the contracting organization– NTT Facilities Inc. – was a request from a property
owner that his unused land be used for solar power
generation. Because different specialties such as power
installation and civil engineering and necessary forbuilding a solar power generation system, it is common
to commission different contractors for each type ofwork. However, because we can handle both
specialties, MIRAIT Corporation was able to take care ofsite preparation, building, and power installation
comprehensively. By shouldering the construction
collectively, the smooth linkage between the various
aspects of construction was made possible, thereby
benefit for the customer in several areas such as cost,
construction time, product quality, and after-saleservice.
Furthermore, use of the new innovative techniquecalled “M-shaped Array Method” developed by NTT
Facilities enabled substantially increased the power
generation per square meter of the site area. The
M-shaped array method is a way to increase the numberof PV solar panels that can be installed in the same areaby lining up several panels tilted in the shape of theletter M and installing them in an array facing east-west
instead of the conventionally used north-south method.
In this installation, a test was conducted by mixing theconventional method with the new technique. As aresult, it was found that the new technique produces
more electrical energy per year. Use of this installation
method enables greater power generation in limited
space, meaning that the number of alternative choices
for equipment installation is enlarged. From now on, bybuilding renewable energy facilities such as
photovoltaic solar power generation systems on unused
land we want to contribute to regional revitalization.
The experience of building this system was also asignificant outcome for the MIRAIT Group through the
new knowledge that was gained. We are quite pleased
that our involvement with the renewableenergy – such as PV solar generation –we are able to contribute toenvironmental conservation. Ensuring acertain and safe completion of
construction, we adhere to scheduled
completion dates, prevent accidents, andmaintain product quality. By keeping tothose simple but essential points, the
MIRAIT Group brand value will increase
as we head towards our goal building asociety that co-exists symbiotically withnature.

photo left:
MIRAIT Corporation
Chiba Branch Office
East Chiba Access Service
CenterYoshikazu Matsumura
photo right:
MIRAIT Corporation
Chiba Branch Office
NTT Sales Marketing Division

Yasuto Sawano

Project Outline-Construction name
F Nagara PV solar generation
system installation-Site Location
Nagara-cho, Chosei-gun, Chiba
Prefecture-Client (Contracting Party)
NTT Facilities Inc.
-Contractor
MIRAIT Corporation

Installing smart water meters at a test
station in the mountainous Hakone-machi“ee-TaB*®”

17

PONTANA digital information
stand installed at the Ise-Shima
SummitCorporate Report CSR 201718

Building and Maintaining Safe, Reliable Technical Capabilities for safety and security

Improving Customer Service
We endeavor to create an environment where workers can unleash their power to satisfy customer expectationsof trust and high-quality products and service, provided at any time, by devising mechanisms and training to put
those tools in motion.

Quality Management
As part of an integrated management system, the MIRAITGroup companies have been certified for quality management
under ISO 9001. Working diligently to provide high-quality
construction and service, we have established a Quality
Policy based on the idea that maintaining safety, security andtrust are the foundations of management. Also, throughcompany regulations, we have clarified specific processes,
procedures, and criterion.
Annually, each company sets targets (for the number offacility accidents, the number of inspection issues indicated,score for customer satisfaction, etc.) depending on the typeof operation. The level of achievement is then reviewed for
efforts continuing into subsequent years.
Policy on Quality
We will efficiently conduct standardized production and service activities toprovide customers with high-quality products and services that meet their
expectations and earn their trust.
• We will promptly respond to customer requests and adopt applicablelegislation and regulations.
• We will seek to enhance product and service quality as well as
construction quality under the “customer first” principle for greater
customer satisfaction and more efficient production and service operations.
• We will reduce quality risk to maintain and improve QCD (quality, cost,and delivery).

Improving Technical Strength and Workplace
Power
The MIRAIT Group is expending various efforts to steadily
improve technical strength – which supports service quality.
■ Striving to be a trusted worksite supervisor

To strengthen management by the worksite supervisor * –the core human resource of business operations, “Worksite
Supervisor Training” is given to newly appointed worksite
supervisors and deputy worksite supervisors.
In recent years, with the increase in the number of
construction sites and with the diversification and increased
complexity of construction details, as the person responsibleat the worksite, the worksite supervisor must have extensive
response capabilities. During this training, the “Worksite
Supervisor Handbook” – that contains the sum total of the
MIRAIT Group’s experience and know-how. In addition tolearning the basic elements of construction management
such as preparing a budget and cost management, throughthe introduction of discussion and role-playing, knowledge isgained organically. It is an approach that enhances
problem-solving capabilities.

19*Worksite supervisor is a supervisory position appointed to consolidate work at each of
the MIRAIT Group’s construction sites.
■ Implementation of authorization of workers for highelevation work safety
So that an engineer is able to work at high elevations safely
and securely, a “high elevation security worker authorization"(access system) and "high elevation security worker
authorization" (network system) is implemented.
The number candidates for each type of authorization as ofthe end of March 2017 was 2,972 for the access system and
243 for the network system.
■ Holding lectures at the Expert College

Lectures are being held at the Expert College for theeducation of specialized technicians, with various types oftraining offered. In 2016 a 9-month Access Systems BasicTechnology course for newly hired employees and a 19-day
Metallic Cable Connection training course were offered. The
purpose of this training is to learn basic access systems
technology and skills together with safe construction abilities.
An additional aim is for the acquisition of various types ofcertification such as information wiring installation andlicensed electrician.
■ Training for a renewed awareness toward safety
A training course for a renewed awareness toward safety ifoffered to the employees at construction sites who arecharged with safety leadership and safety management (anappointed safety supervisor, site agent, or other). The training
helps in enhanced safety management capability throughclasses and practice in safety patrol points, examination of
example accidents and others. Classes were held five times
in 2016 with 55 people attending.

Receiving the “Minister of Land, Infrastructure andTransport's Award for Outstanding Engineering”
In October 2016, Takahiro Oomi of the Access Department, Kanagawa
Branch of MIRAIT Corporation and Yoshinobu Tanaka of the Access
Department, NTT Business Unit East Japan Business Division, Access
Department, MIRAIT Technologies Corporation received the “Minister ofLand, Infrastructure and Transport's Award for Outstanding Engineering”(Master Builder). This honor is awarded to expert builders working on
the front line at construction sites who have shown particularly
outstanding skills and technology and who have made significant
contributions with guidance in the training of the next generation. The
MIRAIT Group has received this award for five consecutive years since2012, but this is the first year that both MIRAIT and MIRAITTechnologies have won in the same year.

Endeavors hand-in-hand with operation partners
Well aware that cooperation from business partners isessential for service quality retention and improvement, the
MIRAIT Group acts in close coordination.

fiscal 2016, we pushed forward mutual recognition regarding
future business development among the 358 companies thatparticipated.

Overall improvement in operation quality■ Enhanced coordination in setting evaluation standards

As part of the integrated management system, the MIRAITGroup has established a "supplier (procurement)
evaluation/selection enforcement standard" among companies
supplying products or services that affect the quality of thebusiness. With regards to new business partners andcontinuing business connections that are larger than a set
criterion, we make a multisided evaluation (of 6 facets: quality,
delivery periods, improvement activities, management
stability, environmental conservation, information asset
management). Prioritizing based on a ranking of the results;
purchases are made from suppliers with precedence –strengthening the coordination with superior partners.

The MIRAIT Group believes that the key to steadily improving
service quality is to raise standards of overall operation quality
consistently. Diligently turning our attention to points noticed
and opinions held by onsite workers (both group employees
and affiliated company workers), we promote "KAIZEN
suggestion activity" to improve efficiency and the quality ofduties. Also, we gather team members from group companies’
worksites and hold regular “MIRAIT Group KAIZEN meetings”
to introduce activity results, bringing reciprocal improvement.
In 2016, 15 teams gave presentations sharing the results ofthe different inventive ideas.
Furthermore, from a business management viewpoint, the
MIRAIT Group as a whole is engaged in TQM (Total Quality
Management) to enhance the overall operation quality.

■ Interaction and Communication

To deepen mutual understanding and communication withaffiliated companies, and with the purpose of contributing tohealthy management, “cooperation meetings” are held withmembers of approximately 200 affiliated companies.
Headquarters activities and three sub-groups – safety,
technical training, and management information along withvarious workshops together with safety strategy activities areheld in addition to information sharing on the cooperation
meeting website.
Additionally, to deepen the interaction with affiliatedcompanies with regional branches, we have divided thecountry into nine areas, holding regular meetings of the“regional cooperation meeting” to exchange information
about business project development and other topics. In

14,727
Number of KAIZEN suggestions(fiscal 2016)

358

companies

Participants in “regional cooperation meetings”(fiscal 2016)

Work that develops emotional connections with the local communityand our affiliated companies
As the head of construction for new construction,
expansion and removal of base station construction fora telecommunications firm, I am responsible for on-site
safety management and guidance, progress control, costmanagement and quality control. Because theunderstanding of the local population is a condition, I
keep their feelings and faithful communication in mind
performing my duties. That makes the joy of a safe
completion all the greater.
I joined the company in a mid-career job change. In my
previous job, I acted as the chief in charge on-site

field-work for base station construction. Therefore, I canunderstand the viewpoint of the subcontractor from
actual experience. As such, in my new position, I try mybest to think of ways that work can proceed more
effectively and smoothly, without putting excessive
burden on the subcontractor employees.
I find work as head of construction greatly fulfilling andI hope to pass that sense on to the next generation. In
order to gain the trust – both in and outside thecompany – as a reliable head of construction, both inname and reality, I intend to continue studying.

Makoto Takahashi
MIRAIT Corporation
Mobile Communications Business Headquarters
Engineering DivisionCorporate Report CSR 201720

Building and Maintaining Safe, Reliable Technical Capabilities for safety and security

Human Resource Education
Supporting growth of each employee from a broad perspective means systematically reinforcing our humancapital that will support us in the future.

Personnel Training System
At the MIRAIT Group, we consider human resource
development as one of the most vital themes. We haveestablished personnel training systems made up of “sectoralmodel systems” to enhance specialized professional
capabilities by sector and “stratified model systems” withthe mastery of knowledge required in common at eachprofessional level (see diagram below). Supporting the
progress of each employee, we are driving the reinforcementof our human resource foundation which, in turn, sustains ourbusiness operation.
Personnel training systems begin with introductory courses
soon after a new employee joins the company and extend
through each professional level to executives. Training isdesigned to enable acquiring necessary knowledge
appropriate for the prospective role and career stage. For
new employees, a particularly solid education training system
is set up that will be usefulregardless of their background– sciences or humanities.
Additionally, there is aninterview system whereby inan employee can discuss ways
to realize his own career goals
with a supervisor. To
accommodate an employee’s
ambition, we promoteaffirmative challenges toacquire various qualification
certificates, and we have
New employee training

established a bonus system depending on a degree ofdifficulty of the challenge.

Preparing the Training Environment
At training centers like the Ichikawa Training Center (Ichikawa
City, Chiba Prefecture) and Kansai Hyper Techno Port (Kobe,
Hyogo Prefecture), various equipment has been installed forfull-blown technical skill training and technologicaldevelopment of our engineers. From brand new employees
to seasoned veterans, to meet our customers’ and society’s
demands and to contribute to today’s needs, we are
sharpening our technological capabilities and ability to makeproposals.

In August 2016, we initiated aninternship program for students.
The principal objective is giving
professional-life assistance to thegeneration that will shoulder theburden of Japan’s future. In the
short-term internship of about one
week, through work experiencessuch as observing
telecommunications cable being
connected and visits toconstruction sites, we provided thestudents the opportunity to deepen
their occupational awareness andrealize their own aptitudes.

organizational revitalization
increased productivity
evaluation / appointment

business headquarters

self-development

gain multiple skills

securing of a diversity of human resources

21

stratified model
systemwithin and outside
the group companies

women

new employee (mentored)

We have introduced a results-based system. In personnel
administration, it uses evaluation of actual process
performance against expected roles and level of achievement.
In the evaluation, serious consideration is given tocommunication between employee and supervisor. Setting
goals and establishing process management rules is carriedout in interviews. Making it a rule to set targets in interviews
and manage progress, we have each individual understandhis position in the organization and significance of his goals
and have in place a system where achieving targets is
incentivized and personal motivation and discipline forcreative thinking and making improvements is stimulated.

“My Way” Manifest
In the MIRAIT Group, a plan is in place for each employee to establish his
own work-style program called the "My Way" manifest. Being aware of
the principles of the basic management policy, conduct guidelines, andthe corporate ethics charter outlined in the "MIRAIT Way" approach, andconsidering past experience and current tasks, each individual expresses
the manifest in his own words. In the MIRAIT Group in-company
magazine – MIRAIST – there is a column where each employee, in relay
fashion, can present his “My Way”, enabling us to know one anotherbetter.

Mentoring Program

sectoral model
systempromotion of interactive
personnel administration

hiring mid-career employees

mentorcompleteness of training environment
promotion ofcross-industrial
interaction

experiencing different corporate culturesand diverse work duties

hiring new graduatessection supervisor / seniormentoring support

Personnel evaluation systemStudents intently listening to an
explanation

Idea behind the Mentoring Program

technical training / guidance

We have also dispatched employees to the group company
with its head office in Singapore, Lantrovision, so that they
can learn about foreign accounting practices, improve skills
for managing overseas projects, and earn an international
qualification, RCDD (Registered Communications Distribution
Designer).

expansion of operations

branch offices

The MIRAIT Group conducts various training programs for
employees hired at their overseas branches. At MIRAITTechnologies Myanmar Co. Ltd., not only locally hired
employees, but those from local affiliated companies participate.
Striving for technical skill enhancement, we hold lectures andpractical workshops in large-scale training sessions.

Initiating Internship Program

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

growth through personnel administration

Training programs at overseas operations

older adults

company support

A senior employee – mentor – is appointed for each new
employee, separate from his assigned section supervisor, for
guidance and counseling. Through dialogue regarding points
noticed by his mentor and counseling, the system promotes
voluntary and autonomous development by new employee(mentored). With monthly interviews, periodical reports andfeedback, not only the new employee, but the senior employee
acting as a mentor, this is a program for positive growth.

Corporate Report CSR 201722

Building and Maintaining Safe, Reliable Technical Capabilities for safety and security

Diversity
Regardless of age, gender, nationality, existence or lack of handicap – placing importance on individuality – weencourage the building of a workplace that will manifest our employees’ abilities to their maximum.

Promoting the active role of female employees

Balance Support System – Career and Childbirth/Child Rearing

So that female employees can give play to their abilities andare able to build careers in various arenas, we are devisingaction plans and analyzing problems in each company. Our
plan initially centers on increasing the ratio of females in new
graduate hires and increasing the ratio of females inmanagerial positions, and at the same time, we are striving toprovide support for a good Work-Life Balance.

during a pregnancy- hospital visits for medical check-ups (in half-day or full-day units)- reduced working hours (as much as 2 hours/day)Prenatal/Postnatal Leave
Before birth: 6 weeks After birth: 8 weeks<paid leave>
Before birth: 6 weeks After birth: 6 weeks■ Work-Life Balance

In the MIRAIT Group, we try to provide an environment wheresatisfying working style and lifestyle are achieved so that
employees can harmonize their work and home life. We aim to
implement an approach with support so that potential abilities
are manifested in operational duties for a good work-lifebalance. Setting up “no overtime days” and encouraging
leaving work on time will certainly promote employee health,but also support women employees’ activities. While, at thesame time, having the objective of creating a workplaceenvironment that facilitates work and home life balance, we
intend to enhance operation efficiency by promotion of KAIZEN
activity in each workplace and to reduce overall working hours.
Also, envisaging a variety of role models and networking,we will plan an ongoing lecture series with instructors active
in related arenas.

Maternity Leave (for spouse)
2 days at childbirth by spouse(granted to an employee of the spouse of an employee)Childcare Leave

100(fiscal 2016)23

Promotion Law) Certification“Eruboshi” is the nickname for the logo mark of a certification
program of the Minister of Health, Labor, and Welfare inwhich companies formulating and reporting action plans topromote the roles of women in the workplace that are carriedout outstandingly are authorized to use the mark. Between
January and February 2017, MIRAIT Corporation and MIRAITTechnologies Corporation of the MIRAIT Group cleared all fiveevaluation items (recruitment, employment continuity, work
methods including working hours etc., ratioof managerial class employees, and varietyof career courses) reaching certificationlevel, thus receiving the highest of thethree levels of certification.

re-employment program to maintain an environment where
those who desire to can continue taking an active part.
Additionally, we hold life plan seminars for employees overa certain age and provide support for financial planning andworking methods after employment extension.

Promoting the active role of local personnel inforeign countries
Centering on Asia and the Pacific Region, the MIRAIT Groupcurrently maintains branches in 14 countries and regions withlocally hired personnel working in the regional offices. Throughmutual support such as dispatch of personnel required
between overseas bases, we seek an overall enhancement of
the technical skills of local employees for growth so that each
employee can demonstrate his full abilities.

granted until child reaches 3 years of age

Support for Senior Personnel
Reduced Working Hours (infant care)
granted until child finishes the third grade of elementary school(as much as 2 hours/day)

Aid for Babysitter Costs

Correspondent to Japan’s progressively lower birthrate andaging population, to support the participation of seniortalented personnel qualified person in the high technology
necessary for communication construction industry, we have
set the retirement age at 62 and have established a67

male grads

21

female grads

Breakdown, by gender, of new graduate hires(fiscal 2016)

Babysitter cost discount coupon issued to applicants
until child finishes the third grade of elementary school

Family Care Leave
granted until child finishes fourth grade of elementary school(5 days/year of 10 days/year for 2 or more children)■ Finding a good balance between a career andchildcare/nursing
So that employees can continue working with a sense of
security for a long time, parental leave (available until the childreaches three years of age) and reduced working hours
system (available until the child finishes the third year ofelementary school), plans are available corresponding to major
life events such as childbirth, infant care or
nursing that are well above levels
stipulated by law. Since the MIRAIT Group
inaugurated the plan in October 2012 until
March 2017, the rate of maternity leave
taken by women employees is 100%.
In September 2015, MIRAIT Corporation
was awarded the“Kurumin” certification
mark for companies thatprovide support to families％
raising children by the
Rate
of
women
employees
Minister of Health, Labor
granted maternity leave
and Welfare.

■ Acquisition of “Eruboshi” (Female Employees*To ensure a smooth return to the same workplace after maternity leave, during theleave, arrangements are made for a supervisor or coworker who has taken maternity
leave in the past to conduct regular face-to-face meetings to provide updates on thestatus of the workplace.

91.3

2.7

Ratio of retention rate for
new graduates after 3 years(fiscal 2016)

％

97

1,617

Ratio of women in
managerial positions

Re-employment instances
for mature employees

Employees hired locally in
14 countries and regions(as of March 2017)(fiscal 2016)(as of end March 2017)％individuals

individuals*Values are totals for MIRAIT Corporation and MIRAIT Technologies Corporation (excluding the number of local employees in 14 countries and regions).

Balance Support System – Career and Nursing
system namedescription

Nursing Holiday
SystemAn employee who has a family member needed home nursing care and isparticipating in the family member’s care, for each family member
requiring care, the employee may be granted up to one year ofcontinuous holiday time or up to one year within one year of
discontinuous holiday time. Also, when period granted the first time does
not exceed 93 days, it can be divided and acquired twice (effective period
may go beyond the 1-year period).

Nursing Holiday
SystemWhen one family member requires nursing care from an employee, leaveis granted for 5 days per year and limited to 10 days per year for 2 ormore family members needing care in half-day units. Also, nursing orother necessary care can be granted for short periods. (paid leave)

Accumulative Leave
SystemOf expired annual paid leave time, up to 6 days/year can be reserved. It
can be used for volunteer activity, family care, nursing, expectant
mother’s medical examination, infertility treatment, maternity leave for a
spouse and other purposes.

Time Units for Annual
Paid Holiday

Limited to 5 days per year, annual paid leave allowance can be used in
one-hour units.

A workplace environment where I can take up new challenges at any time

Akiko AraiMIRAIT Technologies Corporation
Solutions Business Unit
East Japan, Business Division,
Business Create Sales Department

From the time I was hired, I worked in an office, but I
started to want a new challenge. After giving birth, I saw
an opportunity and applied for a transfer to the sales
division. I thought it would be a chance to make a moresignificant contribution to the business. Plus, I thought I
would like to meet more people in a new section and, by
taking a job in sales would better understand ourcompany. I had some uncertainty about both childcare
and the work position, but the feeling of excitement overthe new challenges overcame my fears.
The company system allows for parental leave until
my child was three, but I was able to find a nurseryschool and returned to the workplace after a year. During
my leave, I received frequent emails from my boss andcoworkers with information about the workplace, so myreturn to work was smooth.
As I began to get used to sales work, I formed
relationships with our customers and occasions to go
outside the office increased, but since I can use email
and in-company systems even when I am away from theoffice, it is possible to make efficient use of my time –that is a real help. After I caused a coworker trouble
when my child got a fever, I am careful to share daily
information so that even if I cannot be in the office, there
is someone who can deal with the situation. I am very
grateful to my supervisors and coworkers for theirconsideration and support in many aspects. I will place
importance on thoughtful consideration and mature into
an account executive trusted by our customers.

Corporate Report CSR 201724

Building and Maintaining the Trust of Society

Environmental Protection
Making a consistent daily effort to reduce the environmental footprint resulting from our business activities, topreserve rural mountain landscapes, and to take an active role in environmental beautification, we strive towardpassing on a healthy earth and regional environment to the next generation.

and has campaigns to encourage reduced energy use.

■ Environmental Management System
The MIRAIT Group has acquired EMS (Environmental
Management System ISO 14001) certification for ourdomestic companies. And for the overseas group companies,
too, environmental management systems corresponding tothis are being formed and put into operation.
At each business location, operational activities are examinedand evaluated for their environmental impact. We then devise
countermeasures for serious environmental effects and every
year develop implementation plans, confirming the results andissues for continuity in impact improvement.
We make regular audits with ISO 14001 certified offices
having internal and outside investigations annually.
Furthermore, in the three years between 2014 and 2016,
there have been no incidents, accidents, pollution, or
grievances caused by violation of environmental laws or
problems (for domestic group companies).

Contributing to a circular economy■ Green product-development guidelines

We have established “green product-development”
guidelines compiling the points that should be consideredfrom the product design and development stage with thepreservation of the global environment in mind. During
development, while both observing related laws andordinances, we also consider environmental effects over the
lifecycle of the construction method, product, or service.

• We will comply with legislation and regulations regarding environmental
protection, such as the Act on the Rational Use of Energy and the Waste
Management and Public Cleansing Act, and work to reduce our impact on
the environment and prevent pollution.
• We will implement appropriate risk assessment measures to reduce
environmental risk and conduct effective environmental activities.
• All MIRAIT Group employees will seek to increase their awareness ofenvironmental protection and actively endeavor to pass on a healthy global
environment to future generations.

Environmental Goals and Achievement Status

and other vehicles
By introducing low-emission/ fuel-efficient vehicles, and byencouraging ecologically friendly driving – eco-drive – which isrelatively less burdensome to the environment and leads tofewer traffic accidents, we endeavor to raise company-wideawareness and promote reduced energy use.
■ Recycling Construction By-products

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

results for fiscal 2016

reducing CO2 emissions by more than 1% over theprevious year

reduction of 0.3% from fiscal 2015

■ Green Procurement■ Sharing Results from Environmental Information

Systems
To ascertain actual values of leading performance indicatorsfor environmental conservation initiatives (for electric energy
consumption, consumption of fuels such as gasoline andkerosene, volume of waste – paper, household garbage,industrial waste – and “green” procurement amounts) wehave initiated an “environmental system” that is useful inpreservation efforts.
Particularly in summer and winter when electricity
consumption increases, each workplace sets its own goals

25

Contributing to a society in harmony with nature

At construction centers in each location, we have installed
LED lighting, demand monitoring systems for power
consumption, and are utilizing roof space for PV solar power
generation to promote resource conservation.

■ Biodiversity Conservation

293

thousand kWh

Annual electrical power output of
PV solar generation systems at 11 officesof MIRAIT Corporation and MIRAITTechnologies Corporation (fiscal 2016)■ Reducing burden to the environment caused by cars

Policy on the Environment
As an upstanding corporate citizen, we will pursue activities for protecting
the global environment through our daily operations and contribute to thecreation of a more affluent and comfortable society.

■ Energy conservation at construction centers

Whenever possible, we purchase office supplies and OA
paper based on the recommendations of GPN* green
procurement guidelines. The green purchasing ratio for
MIRAIT Corporation and MIRAIT Technologies Corporation
where 82,8% and 85.8%, respectively.
*For procurement, the GPN (Green Purchasing Network) guidelines list products withconsideration given to environmental conservation.
■ Promotion of the environmental preservation in the

supply chain
We have established an evaluation standard for our suppliers
setting appraisal points for environmental issues (resource
conservation, recyclability, and etc.) as part of selection criteria.

Since 2003 we have participated in the rural areas andneighborhood (“satoyama”) preservation activities of the
Osaka Green Trust (Public Interest Incorporated Foundation)
by recruiting volunteers both inhouse and from affiliatedcompanies. As in the previous year, in 2016, we participatedin restoring and maintaining the planted bamboo groves bypruning and thinning the bamboo grass in the Kurumatsukuri
Forest of Ibaraki City in metropolitan Osaka. We are taking
initiatives toward environmental conservation andpreservation of biodiversity for creation of an abundantly
green and pleasant environment.

Photovoltaic solar power generation facilities of the Kobe technical center■ Promotion of power consumption economy
Most of the energy consumed in offices is electricity. At the
MIRAIT Group we are, as a group, promoting reduced power
consumption measures through rationalization of use andreduction in numbers of printers and copy machines,
thoroughgoing program of power-saving settings on PCs,
along with proper temperature control. Additionally, withstrict enforcement of lights-out policies and regulation ofelevator use, we are encouraging reduced power
consumption in multiple aspects.

Reduction of electricity consumption throughbuilding energy management systems
In 2012, a cloud-based building energy management system was installedat the Shinkiba Building of the MIRAIT Corporation where, byautomatically controlling the indoor temperature at a set point while
controlling the CO2 concentration of the indoor space at an appropriate
level, we are able to reduce power consumption. Also, in 2016, weinstalled a peak cut control system so that when the building’s consumed
power exceeded a prescribed threshold, the air conditioning (outdoor
equipment) – which accounts for a significant ratio of consumed power –is turned off. We were thus able to reduce contracted electricity from
458kW to 396kW for an approximately 14% reduction.

Work in at the Kurumatsukuri Forest■ Environment Beautification

As part of our efforts toward environmental conservation andlocal community contribution, we also work with areacleaning and litter removal activities.
In addition to removing litter and articles washed ashore at“Inage Beach” in Inage Seaside Park, Chiba Prefecture, we been
participating in cleanup activities in the area around Meguro Riverin Tokyo’s Shinagawa Ward continuously since 2003.
At Daimei Tusan Corporation, a MIRAIT Group company, on
the 23rd of every month, a “Two-Three Day” is held forcleanup activities around the headquarters office in Koto
Ward, Tokyo. In addition to this example many offices ofgroup companies conduct cleaning activities as we expand
our locally rooted environment beautification efforts.

Peak-Cut Effect at the MIRAIT Shinkiba Building
470
460
450
440
430
420
410
400
390
380

contracted electric power (kW)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
1
20 6.916
20 .1016
20 .11
16
.1
20 2
17
20 .1
17
20 .2
17
20 .3
17
.4

Environmental Management“Two-Three Day” Cleanup Activities

Corporate Report CSR 201726

Building and Maintaining the Trust of Society

Occupational Safety and HealthContributions to Local Communities

Judging safety, security, and maintaining trust to be a crucial basis for our management foundation, we strive toensure a safe and healthy workplace environment.

As a member of the local community, we earnestly plan and carry out efforts to build communities for
comfortable living – full of vitality – by giving full play to our strengths.

Occupational Safety and Health Management

Contributing to local community problem-solving

The companies of the MIRAIT Group have been certified
under the Occupational Health and Safety Assessment Series(OHSAS 18001). Safety, security, and maintaining trust are
crucial to our management foundation, and we work towards
ensuring a safe and pleasant workplace. Setting accidents
resulting in injury or death, traffic accidents and otherseriously unsafe incidents as supervision check-points, we
continuously improve our performance.
Policy on Occupational Safety and Health
We will place top priority on safety while seeking to secure the safety andhealth of all MIRAIT Group employees and providing a comfortable work
environment.
• We will comply with applicable legislation and regulations regarding
occupational safety and health.
• We will promptly reduce or eliminate occupational safety and health risks
in our business operations by effectively assessing current risks andanticipating potential risks.
• All MIRAIT Group employees will strive to learn about occupational safety
and health from each other and work in concert to ensure workplace safety
and security■ Striving toward the eradication of accidents andimprovement of safety quality
To achieve the goal of eradication of accidents andimprovement of the safety qualities of our operations, astance of returning to basics in our daily actions is essential.
We are implementing that stance.
By preparing and distributing such materials as operationalsafety handbooks, by conducting safety training andconfirmation of implementation, and by providing materials suchas videos of accident scenes as well as visual presentations oflaws and regulations covering safe practices, we are pushing fora deeper understanding of safety in onsite workers. Additionally,
to encourage communication about safe practices among
workers, company executives – from the president on down –diligently make visits to the workplace in an effort to raise eachworker’s awareness of safety on a daily basis.
■ The MIRAIT Group Safety Convention

In July every year, in conjunction with “National Safety
Week”, group companies and affiliated companies hold
MIRAIT Group Safety Conventions in two locations, east andwest, to encourage waterfront development reconfirming
safety awareness and safety measures. (960 members
participated in the Tokyo meet and 614 members in the
Osaka meet.) In fiscal 2016, the president and vice presidentof MIRAIT Holdings Corporation participated. Presentations

27

from the employee in charge of safety about entrenchmentof the “Safety Work Cycle” and various other examples of
workplace safety strategies were discussed, and a lecture bya third-party instructor was given.
■ Dangerous Experience and Body Sensation Training

Aiming to eradicate falling and slipping accidents which accountfor approximately 40% of all fatal accidents at construction
sites, the MIRAIT Group holds “dangerous experience andbody sensation training” using facilities where employees andworkers from affiliated companies can have simulated accident
experiences. The purpose is to raise safety awareness throughexperience. Because the participant trainee senses a falling
accident bodily, his appreciation of the importance of basic
movements and safety appliances is much stronger. Increasing
the number target branch offices and enlarging the training
topics, more than 250 trainees participated in fiscal 2016.

■ Dispatching teachers for outdoor classrooms

The MIRAIT Group emphasizes contributing to local
communities through sports promotion and support for theathletes. In fiscal 2016, MIRAIT Technologies Corporation
sent two of their employees (*1) who are also track and fieldathletes to a “Classroom for Learning from the Athletes” heldby Kasai City, Hyogo Prefecture as special instructors.
Elementary, junior high and high school students from Kasai
City were given track and field lessons.
*1 Yuki Watanabe (running high jump: winner of 2014 and 2015 Japan Athletics
Championships)
Ai Kida (the hop, step, and jump [triple jump]: third place in 2017 Japan Athletics
Championships)

Ensuring safety in a Large-scale DisasterIn response to social needs, we have distributed a “Pocket
Manual for Major Earthquakes and other Disasters” toemployees in case of major emergencies. It contains acollection of information regarding principles of action to betaken and safety confirmation methods when a disaster occurs.
It also calls for a confirmation of routes home to be taken on
foot and for practice with the safety confirmation system.

Support of Health Management
In addition to enforcing regular health check-ups for all
employees, comprehensive medical examinations for
employees over a certain age and specific health guidance,
we intend to encourage health monitoring for our employees.
We also provide recreation facilities in several locations inJapan as opportunities to refresh, and we always encourage
activities that promote health such as the walk rallies held by
the Health Insurance Association.

Scenes from track and field outdoor classroom■ Re-use of abandoned fields and rice paddies
All over Japan, abandonment of once cultivated fields and ricepaddies is increasing, causing damage such as the spread ofweeds, pests, birds, and other animals to neighboring
farmland. As a contribution to the local community, MIRAITGroup affiliated company – Murayama Doken Co., Ltd. – iscultivated rice in formerly abandoned land in Tokamachi City,
Niigata Prefecture. In support of this effort, the MIRAIT Group
is calling on volunteers for rice planting and reaping,Support for the disaster areas in Kumamoto
When the Kumamoto earthquakes struck in April 2016, using
the power supply self-supporting “Poggimo” wireless LAN
access point and “MgBox” emergency magnesium-air
battery that we market, we set up a free temporary Wi-Fi
spot and the battery charging facility for mobile-phones in
evacuation shelters in Kumamoto City, providing secure
telecommunications to the disaster area.
Furthermore, as financial support that would go directly tothe victims of the Kumamoto earthquake, the company gave
gifts matching (*2) those donated by our employees. In total,
the MIRAIT Group donated 920 thousand yen to Kumamoto
Prefecture.
*2 The total sum of a system of increased donations by adding a set amountproportionate to the amount of the contribution made by employees.

“Poggimo” and “MgBox” installed in an evacuation shelter

Activities to promote communication with local
communities■ Participating in Festivals

Mental HealthStarting in December 2015, we have made a “stress checksystem” mandatory. This regime aims to be a primary
precaution measure through employee awareness of stress,
workplace reform, and to stave off psychiatric disorders throughprimary prevention. Before making the regime mandatory, the
MIRAIT Group prepared a Mental Follow-up System (withconsulting services, etc.) based on group analysis after the
stress check enforcement. Each department conducted mental
stress training and through workplace reform. Efforts are being
made toward prevention of psychiatric disorders.

control forest restoration.
The MIRAIT Group continues to participate in tangible
activities begun in 2011, having thus far, installed flower beds
near the temporary housing and removed debris fromfarmland.

Rice planting in abandoned rice paddies

Volunteer participation in the Restoration Effort■ Support for the Tohoku Disaster Area
Following on activities in the previous year, we areparticipating in the community service activities being carriedout in Iwanuma City, Miyagi Prefecture by the Miyagi Dengyo
Association (disaster volunteers), planting trees for tsunamiWith the changes in social structure, a continuation of thefestivals that have been a tradition in all parts of Japan is
becoming increasingly difficult. For the Summer Festival held
near the MIRAIT Technologies Corporation headquarters in
Nishi Ward of Osaka since the Edo Era by the parishioners of
Goryo Shrine to pray for good health, it has also become
difficult to assemble sufficient bearers of the “Mikoshi”
portable shrine. In response to a request from the community
association, in July 2016, three employees participated as
shrine bearers.
■ Participation in the Toyosu Festa

The MIRAIT Group has participated in the Toyosu Festa heldby Tokyo’s Koto Ward every year since our head office
moved to Toyosu in 2010.

Corporate Report CSR 201728

Building and Maintaining the Trust of Society

Corporate Governance and Internal Control
The Basic Line of Thinking toward Corporate
Governance
MIRAIT Holdings Corporation has built an organizationalframework and system to ensure the transparency andfairness of its decision-making process, and places building
relationship of mutual trust with stockholderss and all
stakeholders as one of the most essential managerial issues.
We aim for sustained growth and the improvement of a
medium-and-long term corporate value through the practice ofeffective corporate governance and continuous improvement.

fields and with an independent and objective view canproperly monitor the board of directors’ managerial decisions,execution of duties, and their observance of laws andordinances, enhancing the transparency of the board. MIRAIT
Holdings appoints individuals who will contribute to theenhancement of corporate value as independent outside
director candidates.
The rationale for selection of each director and auditor isoutlined in the “Shareholders' Meeting Notice ofConvocation”.

The structure of corporate governanceIndependent Outside Directors

The MIRAIT Holdings Corporation is a company with a boardof company auditors and has a board of directors, a board ofcorporate auditors, and an accounting auditor.
We elect two directors to the board of directors from outside
the company. Additionally, we have set up a system forreciprocal cooperation where the board of corporate auditors
together with an internal inspection section and accounts
inspector each perform independent inspections.

At MIRAIT Holdings Corporation, to ensure sustained growth
and anticpating guidance from the viewpoint of middle- andlong-term increase of corporate value, and considering theopinions of stockholders and other stakeholders, from ourestablishment in 2010, we have elected outside independent
directors to our board of directors. Currently, we have two
independent outside directors, and are diligent about overall
reporting including prior explanation about matters in theproceedings of the board of directors.
Furthermore, the attendance rate of independent outside
directors at the board of director meetings is high. Each one
has, from his own expertise, given vigorous suggestions
about management supervision, managerial policies, andmanagement improvements.

Internal Control System
MIRAIT Holdings Corporation board of directors has resolved
and put into action, the “Basic Policies of Internal Control
System” to ensure the appropriateness of operational
activities at each of the MIRAIT Group companies. Also, we
have enacted “Subsidiary Company Administrative
Regulations” so that, through the establishment of specificinternal controls at our subsidiary companies, the MIRAITGroup as a whole will have an internal control system in place
for appropriate group administration.

Internal Audit
The operational audit department can ensure a unified
inspection and internal audit program conditions throughverification of the maintenance and operational status of thegroup as a whole and at the same time can advance theimprovement of operations.

Nominating policy and procedures fornomination of board directors and auditors
In the nomination process for candidates for the board of
directors and auditors, a wide variety of candidates isselected from both inside and outside the company andcandidates having superior personality, judgment and highmanagement skills are chosen by the board of directors.
Particularly the independent outside directors who haveabundant experience and knowledge across different fields
can nominate individuals from the perspective of advancing
the medium- to long-term value of the firm by providing
guidance and managerial supervision, and who can carry out
their roles and duties with a specialized and objective
viewpoint. Moreover, the independent outside directors who
have abundant experience and knowledge across different

29

Rationale behind Appointment of Outside Directors
Masaharu Kimura (Outside Director)
As an executive at Japan IBM Co. and other IT industry companies,
Masaharu Kimura has abundant experience. We hold high hopes for his
knowledge and insights, and with his independence from business
operations conducted by management, he is well qualified to objectively
monitor management. We judged that his appointment would lead toenhanced transparency and a strengthened supervisory function of theboard of directors and was therefore chosen as an outside director.

Introduction of Performance-linked
Compensation
In September 2016, we introduced a performance-linked
stock-based compensation plan (Board Benefit Trust) for the
MIRAIT Group directors.* By making the linkage between
the group directors’ compensation with performance andstock value clearer, we anticipate a raised awareness ofcontributions to medium- to long-term performance andcorporate value.
*This refers to MIRAIT Holdings Corporation and its subsidiaries, MIRAIT Corporationand MIRAIT Technologies Corporation directors and executive directors (excluding
outside directors and non-executive directors).

Appraisal of the Effectiveness of the Board of
Directors
Toward enhanced corporate governance, we strive for
efficient management of the board of directors. Based on theregulations of the board of directors, a board meeting is held
once a month or whenever necessity requires. At the boardof directors meeting, all matters that require deliberation are
discussed, there is an active exchange of opinions about each
topic in addition to quarterly reports from each director
regarding the performance of duties. Also, an evaluation of
the board’s effectiveness is conducted to encouragefunctional improvement.

Risk Assessment
Establishing the fundamental points of risk control for thegroup in the “Risk Management Regulations”, we performaccurate control over various risk factors, and the “riskmanagement executive committee” – with the CEO at its
head – reviews issues regarding risk control.
Regarding information security, the group has introduced
the Information Security Standard (ISO/IEC 27001), the group,

as one united body, will work painstakingly to prevent
information leaks and safeguard assets. When an accident,
including information security accidents, occurs a “0 report”
information is immediately shared with management. To be
prepared for a resourceful response, we have set up an
in-company accident bulletin reporting system.

Compliance
We formulated the “Compliance Regulations” in March 2011
to work towards thorough compliance. The “complianceexecutive committee” – with the CEO at its head –deliberates the group’s separate problems and manages the
progress of promoted activities. Also, we have distributed a“Compliance Manual” within the group to encourage
penetration and thoroughness of compliance with businessethics.

Basic approach and performance regarding
payment of taxes
The MIRAIT Group strictly observes all laws and regulations
covering taxation practices in all countries and regions where
it does business, and we endeavor to maintain and improve
taxation compliance with proper payment of taxes. After
adjustment in fiscal 2016, our corporate tax amount was
3,507 million yen, and the effective tax rate burden on
earnings before tax was 34.0%.

IR Activities
We build a relationship of trust with our shareholders andinvestors through affirmative communication, such as timely
and appropriate information disclosure, the general meetingsof stockholders, financial results briefings and presentations
to individual investors.

Message from our Outside Directors
Eiji Ebinuma (Outside Director)
With experience in essential posts at Mizuho Bank, Ltd and others andalso with his knowledge and experience from being an attorney, Eiji
Ebinuma, with his independence from business operations conducted bymanagement and legal perspective, was chosen for an objective andindependent monitoring of business administration. We judged that his
appointment would lead to enhanced transparency and a strengthened
supervisory function of the board of directors and was therefore chosen as
an outside director.
Masao Matsuo (Outside Auditor)
Having participated in the management of such companies as NTT
Advertising, Inc., Masao Matsuo has rich experience and insights regarding
business management. We appointed him as an outside auditor
anticipating effective monitoring and advice regarding overall managementfrom an objective and independent point of view.
Hiroshi Daikuya (Outside Auditor)
With qualifications as a certified public accountant and as the managing
director for the business consulting firm, @Stream Corporation, Hiroshi
Daikuya has abundant experience and insight into business administration.
We appointed him as an outside auditor anticipating effective monitoring
and advice regarding overall management from an objective andindependent point of view.

Investment in growth areas and enhancement of group corporate
governanceIn the Mid-term plan drawn up in fiscal 2017, a added expansion into business domains
such as the environment, energy, IoT and so forth, along with the promotion of
globalization demands a strengthening of technology based on diversity because
development of global human resources has become a vital issue. On the other hand,sufficient understanding of management principles and support for group companies,
including those overseas, maintaining a healthy financial structure, increasing
productivity, and risk assessment for the various business operations are required. To
answer the hopes of society as “Your Company”, a growth strategy through further
strengthening of cooperation among group companies human resource training andimproving overall corporate governance efforts,
including risk management are necessary. As an
outside director, to make immediate use of myprevious experience, I will attend board of director
meeting to contribute to accurate managerial
decisions.

Outside Director: Masaharu Kimura

As a gatekeeper of corporate governanceStarting in June 2015, the corporate governance code came into effect for companies
listed on the stock exchange.
Regulation 4 - 7 of this code gives the following role and duties for the independent
outside director:i) Provision of advice on business policies and business improvement based on theirknowledge and experience with the aim to promote sustainable corporate growth andincrease corporate value over the mid- to long-term;ii) Monitoring of the management through important decision-making at the board
including the appointment and dismissal of the senior management;iii) Monitoring of conflicts of interest between the company and the management orcontrolling shareholders; andiv) Appropriately representing the views of minority
shareholders and other stakeholders in theboardroom from a standpoint independent of the
management and controlling shareholders.
I always attend board of directors meetings so that I
can fulfill my role.

Outside Director: Eiji Ebinuma

Corporate Report CSR 201730

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

Orders received/Net sales
400.0

Gross profit/Gross profit margin(billion yen)

50.0

Dividend per share

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

(%)

15

25.0

12

20.0

(billion yen)

(%)

23.4

10

30

Dividend payout ratio

30

(yen)

30

30

80

(%)

40.0

11.8

11.7
10.8
33.1

30.0

18.5

18.9

19.7

33.5

9.6

8.3

8

7.3

29.9

9

25.8

6.7

15.0

6.7

60

20

20

20.0

6

10.0

10.0

0

0
2014

2015

2016

2013

(FY)

■Orders received ■Net sales■Gross profit

Operating income/Operating income ratio(billion yen)

(%)

14.1

10
8

11.4

2014

2015

6
6.1

4

3.5
2.3

3.0
0
2013
■Operating income

2014

2015

2016

15.0
12.0

(billion yen)

(%)

14.8

3.0

0

0

4.4

200.0

2.5

120.0

150.0
126.1

126.5

128.8

90.0

(billion yen)

0

2015

2016

(%)

5

1,800

2016

0
2013

(FY)

2014

2015

2016

2013

(FY)

Net income per share
150

2.6

2014

(FY)

1,362.6

2.3

56.9

60
40

30.0

20

3.7

3.0

1

0

0
2014

2015

3.0

79.8

2016

2.4

2.4

2014

2015

2.2

60

2.0
44.6

30

300
0

1.0

0
2013

(FY)

2014

2015

2016

0
2013

(FY)

2014

2015

2016

2013

(FY)

■Capital investment

Cash and equivalents/Interest bearing debt

(%)

40.0

9.5

8

(billion yen)

29.1

28.9

(billion yen)

10.0

14.8
10.4

9.0
6.3

6.2

5.0

5.2
15.0

16.2

0
-5.0

10.0

3.0

4.7

2.6

181

16.7

4

(FY)

18.6

15.0

28.7

2016

■Depreciation

Cash Flow
20.0

29.2

30.0

2

2.8

87.3

■Net income ratio

6

3.2

600

6.7
63.1

4.6

4.0

90

33.1
80

(billion yen)

3.2

124.1

110.8

5.0

136.5

120

2

10

Capital investment/Depreciation(yen)

1,570.5

900

3.6
1.3

2013

100

1,511.7

3

6.4

Return on equity (ROE)

60.0

50.0

2016

22.0

1,200

7.1

(FY)

(%)

63.0

2015

(yen)

1,500

20.0

100.0

2014

Net assets per share

4

3.9■Net income(billion yen)

122.9

20

22.0

0
2013

(FY)

11.1

9.0

■Ordinary income ratio

63.8
114.1

2
0

2014

122.8

175.9

2016

4

3.7

218.0
194.9

12.0

6.0

6.7

Own capital/Capital-to-asset ratio
150.0

192.7

10

6

■Ordinary income(billion yen)

2015

Net income/Net income ratio attributableto owners of parent

8

2013

■Operating income ratio0
2014

1,510.5

12.2

6.0

2

2

2013

2015

22.9
20

■SG&A ■SG&A ratio

9.0

(FY)

Total assets/Net assets
250.0

0

Ordinary income/Ordinary income ratio

5.2

4.1

0

36.7

40

4

(FY)

10.5

9.0
6.0

5.0

■Gross profi¬t margin

10.0

5.0

2016

3

76.6

37.6
10

100.0

67.2
60

40

2013

(%)

6

200.0

12.0

80
67.2

323.3
293.6
300.0 282.0 277.7
283.7
283.2
260.7 269.5

15.0

Total return ratio

-2.7

-3.5

-3.8

-2.2

-3.6

-2.6
-6.4

-10.0
0

0
2013

■Total assets

2014■Net assets

2015

2016

(FY)

0
2013
■Own capital

2014

2015

■Capital-to-asset ratio

2016

(FY)

0

0
2013

2014

2015

2016

(FY)

5

3

4

2013

2014

2015

■Cash and equivalents ■Interest bearing debt

-11.1
-15.0
2016

(FY)

2013

2014

2015

2016

(FY)

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

■Net cash

31

Corporate Report CSR 201732

Shareholders

Non-financial Data

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

As of March 31, 2017

The MIRAIT Group also works to continuously prepare and disclose material non-financial datafrom its operational activities.

Provision of renewable energy

Number of Qualifications

Corporate citizenship spending
Total authorized shares: 330,000,000

（kW）

2,500

250,000

4.0(billion yen)

2,047

200,884

200,000

2,000

1,775

Number of shareholders: 19,916 (excluding treasury shares)

1,897

3.0

2.7

158,562

2.7

1,500

150,000
122,755

1,000

100,000
50,000Total outstanding shares: 85,381,866 shares (including 5,985,331 treasury shares)

3.6

2,200

47,409

993

955

2.0

1,072

1,046

1.0

500
0

0
2013

2014

2015

2016

Major shareholders:

0
2013

(FY)

1.9

2014

2015

2016

2013

(FY)

■The number of major IT-related qualifications■The number of major electricity/telecommunications
qualifications*Generation capacity (cumulative total) of our groupconstruction facilities

2015

2016

(FY)

Number of shares held(in hundreds)

Ownership(%)

Sumitomo Electric Industries, Ltd.

162,360

20.45

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

34,250

4.31

Sumitomo Densetsu Co., Ltd.

24,886

3.13

Japan Trustee Services Bank, Ltd. (trust account)

23,0692.91

CBNY-GOVERNMENT OF NORWAY

23,013

2.90

BBH FOR FIDELITY LOW-PRICED STOCK FUND
（PRINCIPAL ALL SECTOR SUBPORTFOLIO）

16,553

2.08

STATE STREET BANK AND TRUST COMPANY 505001

14,033

1.77

THE BANK OF NEW YORK, TREATY JASDEC ACCOUNT

13,555

1.71

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

12,667

1.60

Japan Trustee Services Bank, Ltd. (trust account 9)12,403

1.56

Name

Occupational Safety and HealthOccupational accident rate

2014

2013

2014

2015

2016

0.17

0.33

0.00

0.18

(FY)

Diversity
2013

2014

2015

2016

Ratio of women in new graduate hires

4.2%

13.0%

19.5%

23.9%

Ratio of women in managerial positions

1.4%

1.8%

2.1%

2.7%

Female directors (officers) and number ofoutside directors

0

1

1

1

(FY)

(person)*1. The ratio of shares held is calculated after subtracting the treasury shares (5,985,331).
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.

Rate of parental leave taken

100%

100%

100%

100%

Rate of paid days off taken

41.3%

48.6%

52.2%

52.8%

Environment

CO2 emissions (t-CO2)

Share distribution by owner (excluding treasury shares)
2013

2014

2015

2016

9,219

7,298

7,117

7,095

(FY)

(value is the total for MIRAIT Holdings Corporation, MIRAIT Corporation, and MIRAIT Technologies Corporation – the three companies)

33

Number of shares by owner(shares)ratio

Financial institutions

18,836,057

23.7%

Financial Instruments business operators

1,076,204

Other corporations in Japan

Number of shares by owner(persons)

ratio

Financial institutions

49

0.2%

1.4%

Financial Instruments business operators

31

0.2%

24,764,742

31.2%

Other corporations in Japan

285

1.4%

Foreign corporations, etc.

19,645,542

24.7%

Foreign corporations, etc.

180

0.9%

Individuals/other

15,073,990

19.0%

Individuals/other

19,371

97.3%

Total

79,396,535

100%

Total

19,916100%

Corporate Report CSR 201734