Consolidated Financial Results
for the Nine Months Ended December 31, 2020 [Japanese GAAP]
February 10, 2021
Company name:MIRAIT Holdings Corporation
Stock exchange listing: TSE
Code Number:1417
URL: https://www.mirait.co.jp/
Representative:
Toshiki Nakayama, President and CEO
Contact:
Masakazu Tsukamoto, Director and CFO
Phone +81-3-6807-3124
Scheduled date for filing of quarterly report:
February 10, 2021―
Scheduled date for commencement of dividend payment:
Supplementary briefing materials on quarterly results:
Available
Quarterly results briefing:
None(Amounts are rounded down to the nearest one million)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2020
(April 1, 2020 to December 31, 2020)(1) Consolidated Operating Results (cumulative)(% indicates change from the same period of the previous fiscal year)
Net sales

Ordinary income%

million yen%

million yen%

million yen%

5.5

15,43470.3

16,99864.0

13,934

121.0

25.4

9,064

(8.1)

10,362

(4.5)

6,304

(27.8)

million yen

Nine months ended
304,459
December 31, 2020
Nine months ended
288,507
December 31, 2019
(Note) Comprehensive income:Nine months ended December 31, 2020
Nine months ended December 31, 2019

Net income per share

Diluted net income
per share

yen

yen

130.54

－

63.31

－

Nine months ended
December 31, 2020
Nine months ended
December 31, 2019

Profit attributable toowners of parent

Operating income

12,267 million yen (42.7%)
8,597 million yen (22.2%)(2) Consolidated Financial Position
Total assets

Net assets

million yen

As of December 31, 2020
As of March 31, 2020
(Reference) Equity:

Equity ratio

million yen

323,756
352,134
As of December 31, 2020
As of March 31, 2020%

218,005
218,710
213,520 million yen
215,423 million yen

66.0
61.2

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

End of2Q
yen

End of 3Q
yenYear-end
yen

Fiscal year ended
－
－
20.00
20.00
March 31, 2020
Fiscal year ending
－
－
22.50
March 31, 2021
Fiscal year ending
March 31, 2021
22.50
(forecast)(Note) Revision of dividend forecasts from recently announced figures: None

Total
Yen

40.00

45.00

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

Net sales

Full year ending
March 31, 2021

million yen%

million yen%

million yen%

million yen%

Yen

445,000

0.9

23,000

4.6

24,3004.7

18,00018.3

170.72(Note) Revision of financial results forecasts from recently announced figures: Yes* Notes:(1) Significant changes in subsidiaries during the period under review: None
(2) Application of specific accounting practices for preparing consolidated quarterly financial statements: Yes(3) Changes in accounting principles and changes or restatements of accounting estimates:
1) Changes in accounting principles due to revision of accounting standards: None
2) Changes in accounting principles other than 1) above: None
3) Changes in accounting estimates: None
4) Restatements: None
(4) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury stock):
December 31, 2020

108,325,329 shares

March 31, 2020

108,325,329 shares2) Total number of treasury stock at the end of the period
December 31, 2020

6,907,140 shares

3) Average number of shares outstanding
December 31, 2020

March 31, 2020

958,390 shares

during the period

106,742,903 shares

December 31, 2019

99,581,911 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. 2(3) Future Outlook

P. 3

2. Notes to Summary Information (Explanatory Notes)

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

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

P. 3

Statements
3. Consolidated Quarterly Financial Statements and Notes

P. 4(1) Consolidated Quarterly Balance Sheets

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

P. 6(3) Notes to Consolidated Financial Statements

P. 8(Notes on going concern assumption)

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

P. 8

-1-

1. Overview of Operating Results and Financial Position(1) Overview of Operating Results for the Period under Review
During the first nine months of the current consolidated period (from April 1, 2020 to December 31, 2020), theJapanese economy faced difficult conditions given the prolonged impact of the novel coronavirus disease(COVID-19). More recently in January 2021, an emergency state was declared for the second time in responseto the resurgence of new cases of infection. There is still no visibility as to when COVID-19 will be contained,
and there remain concerns that the uncertainties may persist for some time.
As for the business environment for the MIRAIT Group, some projects were delayed due to voluntary restraints
and disruptions in the delivery of construction materials during the first half of the fiscal year, but the situation
has begun to normalize. In the short-term, there may be some business impact from the resurge in COVID-19
cases. However, in the medium- to long-term, demand for new ICT solutions is expected to emerge with the
expansion of fifth-generation mobile telecommunication (5G) services and the penetration of online classrooms
and teleworking. In addition, the Group expects to benefit from the government policies to promote the use ofrenewable energy with the aim to realize a carbon-free society.
Against this backdrop, the MIRAIT Group is committed to continue business operations as a “Comprehensive
Engineering and Services Company” engaged in the building of social infrastructure that are essential tocommunities, cooperating with telecommunication carriers and other business partners in taking proactive
measures to prevent the spread of COVID-19. At the same time, the Group continues to execute initiatives forworkstyle reform and to improve operational efficiency.
During the first nine months, the Group strived to increase sales by growing facility management operations
and access work to facilitate teleworking in the NTT business, work for Rakuten Mobile in the multi-carrierbusiness, and air conditioning work in the Environmental and Social Innovation business. In the ICT Solutions
business, the Group increased sales for PCs/ servicers for educational facilities and mobile-related construction
materials. The Group also promoted initiatives to enhance operational efficiency to maintain/ improve
profitability.
Meanwhile, the MIRAIT Group is accelerating efforts to transform its business structure in response to thechanges in the business environment. Specifically, the Group is preparing to merge MIRAIT Holdings
Corporation and its consolidated subsidiaries, MIRAIT Corporation and MIRAIT Technologies Corporation,
targeting the early part of the fiscal year ending March 31, 2023.
Moreover, during the period under review, MIRAIT Holdings Corporation repurchased its own shares (6million shares/ 9,570 million yen) to enhance shareholder returns and based on its flexible capital policy torespond to changes in the management environment.
As for the consolidated financial results for the first nine months ended December 2020, orders received
increased by 5.0% year-on-year to 351,265 million yen, net sales increased by 5.5% year-on-year to 304,459
million yen, operating income increased by 70.3% year-on-year to 15,434 million yen, and ordinary income
increased by 64.0% year-on-year to 16,998 million yen. Net income attributable to owners of parent increasedby 121.0% year-on-year to 13,934 million yen, partly due to the sale of policy shareholdings.
(2) Overview of Financial Position for the Period under Review
Total assets at the end of the third quarter of the current consolidated fiscal period amounted to 323,756 million
yen, a decrease of 28,377 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, which more than offset
the increase in costs on uncompleted construction contracts and other.
Total liabilities decreased by 27,672 million yen from the end of the previous fiscal year, to 105,751 million
yen. This was mainly due to the decrease in short-term loans payable and accounts payable for construction
contracts.
Net assets decreased by 705 million yen to 218,005 million yen. Although the Company recorded net income
attributable to owners of parent of 13,934 million yen during the quarter, this was more than offset by thedividend payout of 4,582 million yen and the repurchase of own shares of 9,570 million yen.
As a result of the above, the equity ratio at the end of the third quarter stood at 66.0% (compared with 61.2%
at the end of the previous fiscal year).
-2-(3) Future Outlook
As for the forecast for the consolidated financial results for the fiscal year ending March 31, 2021, the forecast
for net income attributable to owners of parent has been revised upward from the previous forecast announced
on November 12, 2020, to 18.0 billion yen (up 18.3% year-on-year) to reflect the gain on sale of investment
securities recorded as a result of sales of policy shareholdings during the period under review.
There are no changes to the forecast for net sales, operating income and ordinary income from the previous
forecast.
Revision of Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2021
(April 1, 2020 - March 31, 2021)
OperatingincomeNet sales

Net income
Ordinary income attributable toowners of parent

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

445,000

23,00024,30016,000148.97

Revised forecast (B)445,000

23,00024,30018,000170.72

Change (B-A)

―

―

―

2,000

―

Percentage change

―

―

―

12.5

―

441,166

21,99323,207

15,220149.93(Reference)Previous year's results(FYE March 2020)

2. Notes to Summary Information (Explanatory Notes)(1) Changes in Important Subsidiaries during the Period under Review
Not applicable.
(2) Application of Specific Accounting Practices for Preparing Consolidated Quarterly Financial Statements
Calculation of tax expense
Tax expenses are calculated by reasonably estimating the effective tax rate after applying tax effectaccounting against income before income taxes for the current fiscal year, including the third quarter ended
December 31, 2020, 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, 2020

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed
construction contracts and other
Costs on construction contracts in progress
Investments in leases
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Customer related assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Leasehold and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-

Nine Months Ended
December 31, 2020

33,54338,530147,584

106,391

32,7586,123

47,983
5,493

5,798
(96)

5,325
(46)

225,712

203,678

38,94832,806

38,21632,785

1,383
9,457

4,180
9,333

82,596

84,516

1,943
2,921

1,767
3,547

1,729
118

1,579
117

6,711

7,012

30,13922,115

1,967
2,081

1,168
2,272

1,385
1,687

1,432
1,725

(147)

(165)

37,11428,549126,422

120,078

352,134

323,756

(Millions of yen)
Fiscal Year Ended
March 31, 2020

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

Nine Months Ended
December 31, 2020

58,73850,608

16,789

2,200

3,281
3,371

2,838
3,335

4,670
959

4,601
1,306

7,515
120

3,603
70

7
9,284

6
12,891

104,738

81,464

213

1,431

7,607
1,650

6,733
418

41

41

128

120

282
17,635285
14,311

172
953

173
771

28,68524,287

133,424

105,751

7,000

7,000

69,399135,546

69,471
144,968(1,386)(10,887)

210,559

210,553

4,967
(98)

3,775
(98)

(281)
276

(1,203)
493

4,863

2,967

3,287

4,484

218,710

218,005

352,134

323,756

(2) Consolidated Quarterly Statements of Income and Comprehensive Income
Nine Months Ended December 31, 2020
(Millions of yen)
Nine Months Ended
December 31, 2019

Net sales of completed construction contracts
Cost of sales of completed construction contracts
Gross profit on completed construction contracts
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Surrender value of insurance policies
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on revision of retirement benefit plan

Nine Months Ended
December 31, 2020

288,507257,268

304,459
266,916

31,23937,542

22,175

22,107

9,064

15,434

81

42

905

970
284

－
87
69

102

358

－
329

1,501

1,729

36

32
59

－
30
137

－
73

204

165

10,362

16,998

402
26

16
4,277

Other

－
－

271
3

Total extraordinary income

429

4,569

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

28
57

105
5

Loss on valuation of investment securities
Other

3
72

59
74

Total extraordinary losses

162

244

10,62921,323

4,153

7,161

6,476

14,161

6,304

13,934171

227

Extraordinary losses

Profit before income taxes
Income taxes
ProfitProfit attributable toProfit attributable to owners of parent
Profit attributable to non-controlling interests-6-

(Millions of yen)
Nine Months Ended
December 31, 2019

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 forusing equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests-7-

Nine Months Ended
December 31, 2020

2,832

(1,190)

(618)
(88)

(921)
216

(3)

0

2,120

(1,894)

8,597

12,267

8,431

12,038165229

(3) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes on significant changes to shareholders’ equity)
On December 1, 2020, the Board of Directors of the Company resolved to repurchase its own shares throughthe off-hours trading system (ToSTNet-3) pursuant to Article 156 of the Companies Act of Japan, applied
pursuant to Paragraph 3, Article 165 of the Companies Act, following which the Company purchased
6,000,000 shares of its common stock of a total amount of 9,570 million yen. As a result, the Company’streasury stock increased by the same amount.

-8-