Consolidated Financial Results
for the Nine Months Ended December 31, 2021 [Japanese GAAP]
February 10, 2022
Company name:MIRAIT Holdings Corporation
Stock exchange listing: TSE
Code Number:1417
URL: https://www.mirait.co.jp/
Representative:
Toshiki Nakayama, President and CEO
Contact:
Masakazu Tsukamoto, Director and CFO
Phone +81-3-6807-3124
Scheduled date for filing of quarterly report:
February 10, 2022―
Scheduled date for commencement of dividend payment:
Supplementary briefing materials on quarterly results:
Available
Quarterly results briefing:
None(Amounts are rounded down to the nearest one million)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2021
(April 1, 2021 to December 31, 2021)(1) Consolidated Operating Results (cumulative)(% indicates change from the same period of the previous fiscal year)
Net sales

Ordinary income%

million yen%

million yen%

million yen%

6.6

19,10523.8

20,154

18.6

15,2799.7

5.5

15,43470.3

16,99864.0

13,934121.0

million yen

Nine months ended
324,598
December 31, 2021
Nine months ended
304,459
December 31, 2020
(Note) Comprehensive income:Nine months ended December 31, 2021
Nine months ended December 31, 2020

Net income per share

Diluted net income
per share

yen

yen

151.97－130.54－

Nine months ended
December 31, 2021
Nine months ended
December 31, 2020

Profit attributable toowners of parent

Operating income

14,114 million yen (15.1%)
12,267 million yen (42.7%)(2) Consolidated Financial Position
Total assets

Net assets

million yen

As of December 31, 2021
As of March 31, 2021
(Reference) Equity:

Equity ratio

million yen

337,675
358,751
As of December 31, 2021
As of March 31, 2021%

237,895
231,323
232,869 million yen
226,389 million yen

69.0
63.1

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

End of2Q
yen

End of 3Q
yenYear-end
yen

Fiscal year ended
－
－
22.50
22.50
March 31, 2021
Fiscal year ending
－
－
25.00
March 31, 2022
Fiscal year ending
March 31, 2022
30.00
(forecast)(Note) Revision of dividend forecasts from recently announced figures: None

Total
Yen

45.00

55.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022
(April 1, 2021 to March 31, 2022)(% indicates change from the same period of the previous fiscal year)
Profit
Net income per
Operating income Ordinary income
attributable toshareowners of parent

Net sales

Full year ending
March 31, 2022

million yen%

million yen%

million yen%

million yen%

Yen

480,000

3.5

32,0006.2

33,5005.5

22,500(7.0)

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

* Notes:(1) Significant changes in subsidiaries during the period under review: None
(2) Application of specific accounting practices for preparing consolidated quarterly financial statements: Yes(3) Changes in accounting principles and changes or restatements of accounting estimates:
1) Changes in accounting principles due to revision of accounting standards: Yes
2) Changes in accounting principles other than 1) above: None
3) Changes in accounting estimates: None
4) Restatements: None
(4) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury stock):
December 31, 2021

108,325,329 shares

March 31, 2021

108,325,329 shares2) Total number of treasury stock at the end of the period
December 31, 2021

8,331,400 shares

3) Average number of shares outstanding
December 31, 2021

March 31, 2021

6,907,718 shares

during the period

100,538,525 shares

December 31, 2020

106,742,903 shares(Note) Total number of treasury stock includes the Company’s stock held by the Board Incentive Plan trust under theCompany’s performance-linked stock remuneration program for directors and executive officers.

*
-

*
-

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

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

Table of Contents: Supplementary Materials

1. Overview of Operating Results and Financial Position

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

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

P. 3(3) Future Outlook

P. 3

2. Notes to Summary Information (Explanatory Notes)

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

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

P. 3(1) Consolidated Quarterly Balance Sheets

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

P. 6(3) Notes to Consolidated Financial Statements

P. 8

P. 4

(Notes on going concern assumption)

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

P. 8(Changes in accounting principles)

P. 8

-1-

1. Overview of Operating Results and Financial Position(1) Overview of Operating Results for the Period under Review
During the first nine months of the current consolidated period (from April 1, 2021 to December 31, 2021),
Japan witnessed signs of a gradual recovery and normalization of economic activity following the lifting of thestate of emergency and other restrictions at the end of September. However, the number of COVID-19 cases
surged once again with the spread of the new variant, causing renewed uncertainties. Downside risks impacting
the supply chain, such as the COVID-19 situation, semiconductor shortage and rise in raw material costs,
continues to warrant caution.
As for the business environment for the MIRAIT Group (“the Group”), some projects

remain behindschedule due to voluntary restraints and delays in the delivery of construction materials. However, the Group isbenefitting from the increase in mobile work due to base station installment plans brought forward on the backof the proliferation of fifth-generation mobile telecommunication (5G) services. In addition, demand for new
ICT solutions is rising with the penetration of online classrooms/ teleworking and digital transformation.
Furthermore, the government’s “green growth strategy”, including initiatives to promote the shift to renewableenergy to achieve a carbon-free society, is expected to boost demand to build more robust digital infrastructure,
while also driving growth in projects to achieve regional revitalization through the creation of decarbonizedcommunities.
Against this backdrop, the MIRAIT Group has continued business operations as a trusted “Comprehensive
Engineering and Services Company” that builds and protects social infrastructure that is essential to communities,
while taking appropriate measures to prevent the spread of COVID-19. At the same time, the Group is
endeavoring to enhance corporate value and to achieve sustainable growth through initiatives to elevate theefficiency of business operations, including those to promote workstyle reforms and DX.
During the first nine months of the current consolidated period, the MIRAIT Group strived to expand sales. In
the NTT business, optical fiber work increased on the back of government-supported projects to expand advanced
wireless telecommunication networks. Mobile-related work increased in the Multi-carrier business as plans tobuild 5G base stations were brought forward with the penetration of 5G-related services, and electrical/ lighting
work increased in the Environmental and Social Innovation business. Furthermore, in the ICT Solutions business,
LAN/PBX work, Lantrovision’s global business and sales of mobile-related construction materials increased.
Meanwhile, the Group continued to promote operational efficiency to maintain and improve on profitability.
Moreover, the Group is accelerating efforts to transform its business structure. Specifically, progress was madewith preparations for the tri-party merger with MIRAIT Co., Ltd. and MIRAIT Technologies Co., Ltd. scheduled
for July 2022. The Group also commenced discussions to reorganize the software business into a strategic
subsidiary.
As for the consolidated financial results for the first nine months ended December 2021, orders received
increased by 2.0% year-on-year to 358,289 million yen, net sales increased by 6.6% year-on-year to 324,598
million yen, operating income increased by 23.8% year-on-year to 19,105 million yen, ordinary income increased
by 18.6% year-on-year to 20,154 million yen, and net income attributable to owners of parent increased by 9.7%
year-on-year to 15,279 million yen.
As announced January 27, 2022, Seibu Construction Co. Ltd. will be made a subsidiary of the MIRAIT Groupeffective March 31, 2022. The MIRAIT Group will continue to strive to further strengthen its business foundationand to enhance its corporate value.

-2-(2) Overview of Financial Position for the Period under Review
Total assets at the end of the second quarter of the current consolidated period amounted to 337,675 million
yen, a decrease of 21,076 million yen from the end of the previous fiscal year. This was mainly due to the decreasein accounts receivables including those from completed construction contracts and other and the decrease ininvestment securities reflecting the sale of policy shareholdings, which more than offset the increase in costs on
construction contracts in progress and other.
Total liabilities decreased by 27,648 million yen to 99,780 million yen, mainly due to the decrease in accounts
payable for construction contracts and other, and income taxes payable.
Net assets increased by 6,572 million yen to 237,895 million yen due to 15,279 million yen in net income
attributable to owners of parent recorded during the quarter, which more than offset the dividend payment of
4,801 million yen and the share repurchase of 2,999 million yen.
As a result of the above, the equity ratio at the end of the second quarter stood at 69.0% (compared with 63.1%
at the end of the previous fiscal year).
(3) Future Outlook
The consolidated financial results forecast for the fiscal year ending March 31, 2022, as announced on
November 12, 2021, remains unchanged.
2. Notes to Summary Information (Explanatory Notes)(1) Changes in Important Subsidiaries during the Period under Review
Not applicable.
(2) Application of Specific Accounting Practices for Preparing Consolidated Quarterly Financial Statements
Calculation of tax expense
Tax expenses are calculated by reasonably estimating the effective tax rate after applying tax effectaccounting against income before income taxes for the current fiscal year, including the third quarter ended
December 31, 2021, and then multiplying income before income taxes for the nine months with the said
estimated effective tax rate.
The statutory tax rate is applied if the tax expense calculated using the estimated effective tax rate lacks
rationality to a significant degree.

-3-3. Consolidated Quarterly Financial Statements and Notes(1) Consolidated Quarterly Balance Sheets(Millions of yen)
Fiscal Year Ended
March 31, 2021

Nine Months Ended
December 31, 2021

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

44,76438,011

147,605

120,971

30,7895,460

42,421
4,528

4,902
(26)

10,406(11)

233,494

216,328

Buildings and structures, net
Land38,54632,891

40,76135,252

Construction in progress
Other, net

5,602
9,614

2,840
9,393

Total property, plant and equipment

86,65588,247

Customer related assets
Goodwill

2,523
3,094

2,503
2,845

Software
Other

1,620
311

2,656
271

Total intangible assets

7,549

8,277

Investments and other assets
Investment securities

22,562

14,487Retirement benefit asset
Deferred tax assets

2,988
2,504

4,001
3,369

Leasehold and guarantee deposits
Other

1,425
1,798

1,440
1,702

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

Intangible assets

Allowance for doubtful accounts

(227)

(179)

Total investments and other assets

31,052

24,821

125,256

121,347

358,751

337,675

Total non-current asset
Total assets-4-

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

Nine Months Ended
December 31, 2021

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

63,213
186

50,784
186

Income taxes payable
Lease obligations

8,086
3,347

1,363
3,372

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

3,150
1,299

4,390
805

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

8,023
101

3,951
77

Provision for warranties for completed construction
Other

10
15,59915
10,950Total current liabilities

103,018

75,898Long-term accounts payable - other
Lease obligations

1,324
6,592

773
5,675

Deferred tax liabilities
Deferred tax liabilities for land revaluation

1,139
41

940
41

122
310

76
359

13,974
189

15,258202

Non-current liabilities

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

714

552

24,40923,881

127,428

99,780Share capital
Capital surplus

7,000
69,571

7,000
69,638Retained earnings
Treasury shares

155,239(10,888)

165,930(13,843)

Total shareholders' equity

220,922

228,725

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

4,660

2,512

Revaluation reserve for land
Foreign currency translation adjustment(98)(1,126)

(98)
(253)

Remeasurements of defined benefit plans

2,031

1,984

Total accumulated other comprehensive income

5,466

4,144

Non-controlling interests
Total net assets
Total liabilities and net assets

-5-

4,934

5,025

231,323

237,895

358,751

337,675

(2) Consolidated Quarterly Statements of Income and Comprehensive Income
Nine Months Ended December 31, 2021
(Millions of yen)
Nine Months Ended
December 31, 2020

Nine Months Ended
December 31, 2021

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

304,459
266,916

324,598
281,038

Gross profit on completed construction contracts

37,542

43,560

Selling, general and administrative expenses

22,10724,454

Operating profit

15,434

19,105Non-operating income
Interest income

4235

Dividend income
Foreign exchange gains

970
284

622

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

102

Other
Total non-operating income

－
329

－
54
154
375

1,729

1,241

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

32
59

39

Foreign exchange losses
Infectious disease control costs－－
73

Non-operating expenses

Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on revision of retirement benefit plan
Other
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets

－
11
56
85

165

192

16,99820,154

16

643

4,277
271

2,973

3

－
34

4,569

3,652

0

28

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

105
5

80

Loss on valuation of investment securities
Loss on revision of retirement benefit plan

59
－

－
0
34

Business restructuring expenses
Other

－
73

70
71

Total extraordinary losses
Profit before income taxes

244

285

21,323

23,521

Income taxes

7,161

8,089

Profit14,161

15,432

Profit attributable toProfit attributable to owners of parent

13,934

15,279227

152

Profit attributable to non-controlling interests-6-

(Millions of yen)
Nine Months Ended
December 31, 2020

Nine Months Ended
December 31, 2021

(1,190)(2,149)

(921)
216

875
(47)

0

3

(1,894)(1,317)

Comprehensive income

12,267

14,114Comprehensive income attributable toComprehensive income attributable to owners of parent

12,038

13,956229

157

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using
equity method
Total other comprehensive income

Comprehensive income attributable to non-controlling interests-7-(3) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes on significant changes to shareholders’ equity)
On May 14, 2021, the Board of Directors of the Company resolved to repurchase its own shares in the market
pursuant to Article 156 of the Companies Act of Japan, applied pursuant to Paragraph 3, Article 165 of theCompanies Act, following which the Company purchased 1,457,800 shares of its common stock of an amountof 2,999 million yen. As a result, the Company’s treasury stock increased by the same amount.
(Changes in accounting principles)(Application of Accounting Standard for Revenue Recognition)
The Company has adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29
dated March 31, 2020) and other relevant standards from the beginning of the first quarter of the current
consolidated fiscal period. Under the new accounting policy, revenue is recognized as the amount expected tobe received in exchange for promised goods or services when the control of such goods or services istransferred to the customer.
Major changes resulting from the application of the “Accounting Standard for Revenue Recognition”, etc.,
are described below.
(1) Performance obligations satisfied over a certain period of time
The Company previously applied the percentage-of-completion method for construction contracts inwhich the outcome of the portion of the construction to be completed at the end of the consolidated fiscal
year was deemed to be certain. The completed contract method was applied for other construction contracts.
Under the new accounting policy, revenue is recognized over a certain period in accordance with theprogress on satisfaction of performance obligations, with the exception of small and short-term construction
work. If the progress on satisfaction of performance obligations cannot be reasonably estimated, but costs
incurred to satisfy such performance obligations is expected to be recovered, revenue is recognized within
the scope of actual costs incurred.
(2) Transactions deemed to be agency transactions
The Company previously recognized the total amount received from customers in exchange for goods
for certain sales transactions. Under the new accounting policy, revenue for sales transactions in which theCompany acts as an agent is recognized as the net amount after deducting the amount that is paid to the
supplier of such goods from the amount received from customers.
In accordance with the transitional treatment stipulated in the proviso of Article 84 of the “AccountingStandard for Revenue Recognition”, retained earnings as of the beginning of the first quarter of the current
consolidated fiscal period has been adjusted to reflect the cumulative effects of retrospectively applying the
new accounting policy to periods prior to the beginning of the first quarter of the current consolidated fiscal
period, and the new accounting policy is applied from the said balance.
As a result of the application of the new accounting policy, net sales for the first nine months increased
by 7,080 million yen, cost of sales by 6,740 million yen, and operating income, ordinary income and profit
before income taxes by 340 million yen. Retained earnings at the beginning of the period under review
increased by 63 million yen.
In accordance with the transitional treatment stipulated in Article 89-2 of the “Accounting Standard for
Revenue Recognition”, the Company has not reclassified the statements for the previous consolidated fiscal-8-

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

-9-