Comprehensive Engineering and Service Company

MIRAIT Group

Corporate Report

2020

MIRAIT Holdings Corporation
CSR Office
5-6-36, Toyosu, Koto-ku, Tokyo, Japan 135-8111
Phone: 81-3-6807-3120 Fax: 81-3-5546-2967

https://www.mirait.co.jp/en/

Group Overview

CONTENTS
Overview of
MIRAIT Holdings Corporation
Date of establishment
October 1, 2010
Head office
5-6-36, Toyosu, Koto-ku, Tokyo, Japan
Representative
NAKAYAMA Toshiki,President and Chief Executive Officer
Capital7 billion yen
Stock Listing
1st Section of Tokyo Stock Exchange(Security code: 1417)
Total outstanding shares
108,325,329
Ratings
Rating and Investment Information, Inc. (R&I) ACredit Rating Agency, Ltd. (JCR): A
End of fiscal year
March 31
Number of employees (consolidated)
12,580 (as of March 31, 2020)*
Number of consolidated subsidiaries
75 (as of March 31, 2020)*Simple tabulation of all companies

List of Group Companies
MIRAIT Corporation
M’s Frontier Corporation / DAIMEI TECHNO CO., LTD. / KOKKO SYSTEMS CO., LTD.
Tohoken System Engineering Corp. / Meisei Correspondence CO.,LTD.
Nissin Tsuukou Co.,ltd. / DAIMEI NETWORK CO., LTD. / DAIMEI TUSAN CO.,LTD.
SINKO ELECTRIC CORP. / MIRAIT-X Corporation / TODENTSU Access Corporation
TODENTSU NETWORK Co.,Ltd / Nissetsu Co., Ltd. / Okisokou Co., Ltd.
Libnet CO., LTD. / TIMETEC Co., Ltd. / Trust System Corporation / HOPE NET Co., Ltd.
Line Connect Corporation / Tokaikoei Inc. / Miyakokensetsu Corporation
NIPPON Sangyo Corporation / NIPPON TOYOCOM Co.,Ltd
DAIMEI SLK (PRIVATE) LIMITED (Sri Lanka)

03

President’s Message

Building and Maintaining a Comfortable Society

06

Our Businesses

13

07

Value Creation and Performance

Bringing the Information and Communications Environment
to the Next Stage09

Unfolding the Medium-termManagement Plan

15

Promotion of Smart Social Infrastructure Management

17

Supporting Smart Life Realization

18

Making Cities Disaster Resistant

11

Promote ESG-oriented Management

Building and Maintaining Safe and Reliable Technical Capabilities
19

Pursuing Quality

20

Occupational Safety and Health

MIRAIT Technologies Corporation
AST-ENG Corp. / Lapisnet Co., Ltd. / COTONET ENGINEERING Co., Ltd. / Ligare Co., Ltd.
Agility RISE Co., Ltd / Comlead Co., Ltd. / Nishinihondenko Corporation
MiratecDrone Corp. / Ground Create Co., Ltd. / KATAKURA CONSTRUCTION Co., Ltd.
MIRAIT Information Systems Co., Ltd / ACTIS Co.,Ltd / CREiST Inc. / Fucom Corp.
Kinki Denki Corp. / MIRAIT Technologies Australia Pty. Limited (Australia)
MIRAIT PHILIPPINES INC. (Philippines)

21

Workstyle Reforms

22

Diversity

23

Human Resource Development

25

Protecting the Environment

TTK Co., Ltd.
Toubu Denwakoji Corporation / Hokubu Densetsu Corporation
Morioka Denwakoji Corporation / Hakkou Tsushinkensetsu Corporation
Sensyu Tsushinkensetsu Corporation / Yamagata Tsushinkoji Corporation
Fukushima Denwakoji Corporation / Tsukada Electrical Construction Co., Ltd

27

Social Responsibilities in the Supply Chain

28

Helping Local Communities

29

Corporate Governance and Internal Control

SOLCOM Co.,Ltd.
SOLCOMMEISTER Co.,Ltd. / Yuwakogyo Corporation / Seikenkogyo Co.,Ltd.
Solcom Business Survice Corporation / Chugokutsushinshizai Corporation
Dentsushizai Corporation

35

Financial and Non-Financial Data

38

Status of Shareholders

Building and Maintaining the Trust of Society

Shikokutsuken Co., Ltd.
Ochidenki Corporation
Lantrovision (S) Ltd. (Singapore)
Lantro (S) Pte Ltd / Lantro (Malaysia) Sdn. Bhd. / Lantro (Penang) Sdn. Bhd.
Lantro (HK) Limited / Lantrovision Korea Co. Ltd / Lantro (Shanghai) Co. Ltd
Hangzhou Lantro Co, Ltd / Lantro Phils Inc. / Lantro (Taiwan) Ltd
Lantro Technologies India Pvt Ltd / Vrnet (S) Pte Ltd
Appsilan Asia Pte Ltd / Infilan Pte Ltd / Adnos Solutiens Pte Ltd
Innovative Energy Systems & Technology Pte Ltd / Lantro Myanmar Co., Ltd
PT Lantro Technologies Indonesia / YL Integrated Pte Ltd
Sun Power Electrical Pte Ltd / Nectric Engineering Pte Ltd
Shanghai Changling Communication Equipment Co.,Ltd.
Altro Solutions Pte Ltd / Lantro (Thailand) Co Ltd / Lantro (Vietnam) Co Ltd
Lantro (Cambodia) Co Ltd / Lantrovision Inc

Editorial Policy

Reporting Period

Related Information on our website

This report outlines the policies, plans, activities, andachievements of the MIRAIT Group to create value in the short,medium and long term. The business and direction of the MIRAITGroup outlined at the beginning of this report explains initiatives
to enhance the capital that supports our businesses. In the next
section, we include information about the progress of ESG
management addressed in the new medium-term management
plan by each priority theme. We also work to provide a concise
yet comprehensive report about information that includes the
management structure as well as the financial and non-financial
performance which the organization is striving to strengthen.

FY 2019 (April 1, 2019 to March 31, 2020)
Note: This report contains some data outside the above period
so far as it complies with the editorial policy.

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

Guidelines Referenced

Corporate Information
https://www.mirait.co.jp/en/company/

Boundary

Including consolidated subsidiaries and overseas subsidiaries (as of October 1, 2020)

01

Corporate Report 2020

In this report, we report on the MIRAIT Group as a whole. Please
note that numerical data and some of the information publishedin this report are of the boundary for which such data or
information is available at the time of publishing this report, as
indicated in the text or in supplementary notices.

International Integrated Reporting Framework issued by theInternational Integrated Reporting Council

Date of Publication
November 2020

Business Information
https://www.mirait.co.jp/en/service/
IR Information
https://ir.mirait.co.jp/en/

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

Corporate Report 202002

President’s Message

We will keep delivering what is good for society and the planet
as a smart infrastructure provider who creates and stewards
tomorrow’s social infrastructure.
Supporting Society’s Core Infrastructure

NAKAYAMA Toshiki
President
and Chief Executive Officer

I introduce the MIRAIT Group to many people as a "smart
infrastructure provider that builds and protects the infrastructureof the future." The Group builds, operates, maintains, andmanages society’s core infrastructure comprised ofcommunications, electricity, transportation, water supply, andenergy. Keeping in mind that the state of such an infrastructure
will have a great impact on the lives of each and every consumer,
the activities of society as a whole, and the conservation of the
global environment, we are always committed to doing better
work and envisioning the next form of infrastructure. In addition,
once a natural disaster causes damage to the infrastructure, it isour duty to hurry in restoring it.
Therefore, the Group's business activities naturally have facetsthat contribute to the realization of the Sustainable Development
Goals (SDGs). I always tell employees to think about the value that
their work brings to society and that they should take pride in it.

Strategy for Strong Growth
The MIRAIT Group achieved record high sales and operating
income in FYE March 2020. However, COVID-19, which has
spread globally since early 2020, has had a tremendous impact on
our business markets. In addition, telecommunication carriers inJapan are moving toward increasing investment efficiency, and it
is certain that demand for conventional telecommunications
construction work will gradually decline. Under such conditions,
we have newly formulated a strategy for the Group to achievestrong growth. The three pillars of this strategy are"strengthening of the profit structure of existing businesses,""strengthening of the growth potential of business in new fields,"
and "strengthening of the management base."
To strengthen the profit structure of existing businesses, wewill promote bold business reforms and efficiency. I use the term
"DX/AX," or digital and analog transformation, to describe thatbroad approach. On the digital side, robotics has already madeconsiderable progress in simplifying testing operations.
Equipment safety patrols and surveillance are performed
remotely using cameras so that morning meetings at work sites
can be conducted online. On the analog side, we are promoting
organizational efforts to promote streamlining of work andutilization of technology and know-how. Typical examples are
simplification of contract procedures, reduction of subcontracting
structures, and consolidation of technology centers that are
scattered across various regions.

03

Corporate Report 2020

Powerful Growth of MIRAIT GroupStrengthening of theProfit Structure of
Existing Businesses

Strengthening of the
Growth Potential of Businessin New Fields

Living with
COVID-19

Strengthening of the Management Base
Safety & Quality Human Resources
Brands Systems
Group Management Integration

As for businesses in new fields, we are focusing our efforts
specifically on four growth areas. “IoT/5G/ICT" is a group oftechnologies that promote a smart society. Our Group has realized
efficiency, energy savings as well as safety and security throughsolutions that integrate these technologies. With their range ofapplications expanding rapidly, drones are mainly used as "moving
sensors", which are a type of IoT device. "Smart civil engineering"leads to the streamlining of construction and maintenance ofwaterworks, roads, bridges, etc., and is the pre-stage for turning
entire cities into smart cities. For example, the Group uses
underground sensors to grasp the actual conditions in the groundand performs 3D mapping to make construction more efficient andsafe. For "renewable energy" related to power generation throughsolar power, wind power, and hydraulic power and the spread ofelectric vehicles, we provide a system that integrates electricity andcommunication as the operation, monitoring, and maintenance ofequipment are becoming more important. "Global engineering,”
our last area of focus, is being developed in a more diversified
manner with Lantrovision, which provides services throughout Asia
centered on Singapore, at the core.
The most important issue in strengthening our managementbase is how to enable the five business companies of the Group to
demonstrate teamwork which is, in other words, deepening of the
management integration. Until now, the main focus was on sharing
the best practices of each company. From now on, however, we will
promote the reallocation of roles in consideration of eachcompany's strengths and establish a more rational businessCorporate Report 202004

Our Business●●●

GIGA school concept
School NW/LAN
School route cameras●

Health management application
●

IoT

●
●

5G

MIRAITOMAI premium rice
Remote surveillancecamerasGlobalEngineering

ICT
●
●
●
●

5G service area construction
Digital twin computing
Electricity/Roads
Underground power line●●

Smart Civil
Engineering●●●

Lantrovision
Global network of offices
in 13 Asian countries

Air conditioning facilities
Water utility facilities●●

Telework
Non-fixed desk system
Dronesi-Construction

Renewable
Energy(EMS*)

Wireless-activated disasterprevention
Smart community(restoration housing)●●●Solar power
Wind power
Hydraulic power
EV*EMS: Energy Management System

structure. At the same time, we will integrate fixed communicationand mobile communication operations and increase the number ofskills that engineers possess so that one team can handle a wider
range of operations. This means that, for example, recovery workfrom typhoon damage can be completely handled by one group,
making it possible to proceed more quickly.
By putting together the efforts of the three pillars in this manner,
we aim to grow into a corporate group that can deliver greater
value to society. Although the medium-term management plansales target of 450 billion yen and operating income target of 27
billion yen (operating income margin of 6.0%) for FYE March 2022
are not easy to achieve, we will aim to achieve these targets withoutchange even in light of the COVID-19 crisis. At the same time, weplan for frontier domain operations to comprise 46% of total sales.
Medium-term Management Plan(billion yen)FYE March 2020

FYE March 2021

FYE March 2022

441.1

435.0

450.0

Net sales
Operating income

21.9

22

27

Operating income ratio

5.0%

5.0%

6.0%

Fostering Engineering capabilities and Developing
Human Resources
I believe that the greatest strength of the MIRAIT Group is its“Engineering capabilities.” We have steadily accumulated theorganizational capacity and human resources to create, operate,
and properly maintain equipment and systems that solve problems
for our customers. As a result, the Group has a vast amount ofexperience in both communications and electricity. In addition, weare also focusing on efforts to create advantages unique to us.
To that end, human resource development is important. In
addition to setting important qualifications to be acquired by
employees, we are also promoting the acquisition of multiple
qualifications. The company also opened its first communication
tower facility used for training purposes in western Japan. We arerefining our technology while clarifying the division of roles
between humans and robots.
The company is also working with a wide range of partners to
improve our Engineering capabilities. We are also collaboratingwith US venture companies to establish 5G service area
construction technology that raises social expectations. Throughcareful preparation, we were able to start providing local 5G
wireless service area construction solutions that support smart
factories from June 2020.

05

Corporate Report 2020

Management ability is also indispensable to demonstrate ourEngineering capabilities. One of the initiatives we are currently
focusing on is the "MIRAIT Mirai Juku," an education initiative which
trains people who support the MIRAIT Group. In the past, people
who had knowledge about telecommunications construction sites
and technology were in charge of management. However, now that
we are developing new business areas, this program will focus onproviding employees with broader knowledge, including
management and finance, and applied ability to solve newproblems. We also emphasize active interaction with the outside
world as well as sharing and reflecting on those experiences by thecurrent management team. In this way, we are taking on thechallenge of developing skills in new ways and paving the way for awider range of human resources to enter management.

Testing and Establishment of New Work Styles
The COVID-19 pandemic has raised the question of what types ofwork styles employees should be following, an issue that allcompanies face. In the MIRAIT Group, whose main business isengineering, office work is limited and movement of construction
sites is essential. It is necessary to continue to answer thequestion of how to maintain each site while taking measures toprevent infection and coordinating with company offices.
The Group has assigned the first half of FYE March 2021 as
Phase 1 and the second half as Phase 2 in order to achieve abalance between work and COVID-19 countermeasures and has
been working in stages. In Phase 1, we tested new work styles
such as telework, satellite office based work, and personal vehicle
based commuting. In Phase 2, we are advancing theestablishment of new work styles realizing that the work
environment will not be the same as it was before the COVID-19
crisis. Furthermore, based on this experience, we also provide
new services that support working remotely.

Moving Forward Toward Becoming
a “Good Company”
I believe that the growth of the MIRAIT Group will be achieved byrepeating "good work" and becoming a "good company." By
continuing to be a company that grows financially, a company
where employees can work comfortably, and a company that ourbusiness partners want to work with, we should be able to pave
the way to a “good future.”
October 2020 marked the 10th anniversary of the establishmentof MIRAIT Holdings in 2010 and the start of business of the MIRAITGroup. How to achieve results from the business integration that
occurred in 2018 is one of our biggest management issues. Thereis a term in Japanese that means "fluidity and immutability.” Inline with this, it is important to clearly identify what should bechanged and what should not be changed based on the history ofeach company. After this, we will evolve into a corporate groupwith independence and comprehensive strength.
I would like to thank all of you for your continued expectations
and cooperation.

Building and Maintaining
Starting with telecommunications infrastructure, we build abroad range of systems offering greater convenience in daily
life and society as a whole and ensuring greater safety andsecurity (comprehensive engineering: configuration), andmaintain them (servicing: maintenance and operation) both inJapan and overseas.

MIRAIT Group Sales

441.1

43%

bil. yen(FYE March 2020)22%

97.2 bil. yen
Multicarrier35%

156.3 bil. yen
NTT Operations
The MIRAIT Group builds,
maintains and operates the NTT
Group’s fixed-line communication
facilities and provides support tomake optical fiber networks evenmore prevalent. Although initially
focused on building thosefacilities, in recent years we have
expanded into facility
maintenance and operation as
well. When disaster strikes, ouremergency repairs andreconstruction safeguard thesecommunication networks.

The MIRAIT Group builds,
maintains and operates mobile
communications facilities tosupport the increasing speed andcapacity of mobile networks. We
are currently conducting
constructions for the expansion of
5G service area.
Our Group also builds andmaintains fixed-line
communications facilities forcommunication carriers, conducts
CATV, and builds and maintains
fixed-line and mobile
communications facilities
overseas (Australia, Philippines,
and Sri Lanka).

66.7 bil. yen

120.8 bil. yen

Environmental and Social Innovation

ICT Solutions

The MIRAIT Group builds,
maintains and operates solar
power generation systems, EV
charging stations and storage
battery systems to make newenergy infrastructures moreaccessible. In addition, we willcontribute to the construction of
next-generation environmental
and social infrastructures throughthe elimination of utility poles(undergrounding of electric wires),electrical and air conditioning
work, including LED installation,water and sewage work as well as
road infrastructure work, such as
bridge construction.

With our ICT technology, we
provide high-quality solutions
that respond to a wide range ofsocial and business issues,
including introducing LAN/PBX
and Wi-Fi, ensuring security,
building management
advancement, and promotion ofoperational efficiency. We havebegun building and operating
data centers and using drones tofurther expand the breadth ofthese solutions.

A Step Forward
Shikokutsuken Co., Ltd. was involved with the construction of fivebridge piers of the Iwagi Viaduct, which connects Iwagi Island and
Ikina Island in Kamijima Town, Ehime Prefecture, to realize theopening of the entire Yumeshima Kaido route. First phase
construction wascompleted in FYE March
2018, second phase werecompleted in FYE March
2019, and third phasewere successfullycompleted at the end of
2019.

Corporate Report 202006

Value Creation and Performance

Foundation of Our Business

MIRAIT Group companies
Earn High Ratings
in Technology Contest

The MIRAIT Group continuously enhances a wide range of non-financial capital supporting
businesses to heighten medium- to long-term financial performance.

Engineering Capital

Human CapitalIntellectual Capital

Organizational CapitalSocial and Relationship Capital

We keep both the hardware and software
directly used for engineering in good
shape while regularly adopting the latest
versions.

The size and quality of human capital iscrucial in engineering. With thisrecognition in mind, the MIRAIT Group
works to cultivate its human capital that
supports the growth of business in
multifaceted ways.

The technical capabilities of the MIRAITGroup are a factor affecting its market
competitiveness that often remains unseen.
We invest our efforts in transforming tacitknowledge into explicit knowledge which
can then be shared and succeeded. We arealso expanding our intellectual capitalthrough M&A (knowledge and know-how
in the water supply field, etc.).

The business operation system of the
MIRAIT Group and partner companies isthe foundation for business growth inJapan and abroad.

The trusted relationships with our
stakeholders are an “unseen foundation”
of the MIRAIT Group’s businesses.

Major Capitals

Major Capitals• Construction equipment(aerial work platform vehicles, etc.)• Network/cloud service infrastructure• Internal information systems• Engineers/skilled workers with a high level ofproblem-solving skills• Trusted worksite supervisors• Sales staff who nurture good relationships
with customers

Development Initiatives• Systematic renewal of construction equipment• SD-WAN (software-defined networking)• Construction and operation of our own data
center• Configuration of networked DC*1
• Enhancement of core systems(for i-Construction)• Operational improvements through active
adoption of RPA*2*1 System to link with leased data centers throughunderground cables*2 Operational automation through robotics

Development Initiatives• Systematic training through a personnel
training system• Bounty system for obtaining professional
qualifications• Support for career advancement through aninterview program• Personnel rotation that encourages
experience in diverse businesses andorganizational cultures• Securing and promoting active participationof diverse talents• Enhancement of engineering personnel(mid-career employment)• Expansion and deepening of regional
coverage• Strengthening of Group operation systems• Collaboration meetings and regional
cooperation meetings with business partners• CSR sourcing

Number of Group Companies

12,58020,77758

Personnel with qualifications

KAIZEN Fellows

Number of partner companies
with Ongoing BusinessApprox.

Corporate Report 2020

Development Initiatives

Number of KAIZEN suggestions

9,150(Up 150 from Previous Fiscal Year)07

Development Initiatives• Operation of various management systems• Strengthening of construction management
capabilities (Use and ongoing revisions of theWorksite Supervisor Handbook)• KAIZEN Suggestion Activity (reforms anddevelopment of articles and methods via
suggested improvements)• Adoption of the latest technology

Major Capitals• The brand based on confidence and trustfrom customers• Long lasting relationships with
telecommunications carriers• Relationships with customers, other thantelecommunication carriers, in various fields• Collaboration with municipalities andgovernment agencies• Support from local communities

Number of employees

Approx.

The data is for FYE March 2020 (as of March 31, 2020)

Major Capitals• Telecommunications construction and otherengineering expertise• Knowledge in specialized relevant fields• Research and development or processes andtechniques of value engineering• Quality control, occupational safety andhealth, environmental conservation and otherexpertise

Major Capitals• Presence in each region and country• Business sites (sales, construction, andservices)• Partner companies (smooth collaboration)• Networks with organizations and people
related to business

17,00076

Over

in Japan30

Number of Users of Information
and Communication Facilities Supportedby the MIRAIT Group (Japan)

Approx.

OverseasOvermillion

100

Countries

Number of Pilots Produced Through Our
Drone School Which We Have Been
Running for Three Years

Sales Sites Lantrovision is Expanding
Throughout Asia

Countries and Regions

41

Track Record of Building Communications
Facilities Worldwide by the MIRAIT Group

1,000

13

Development Initiatives• A long and proven track record• Clarification of quality standards as well as
confirmation and validation of quality in each
operation• Disaster recovery response• Local contribution efforts/activities to promote
communication with local communities

27

Sites

Approx.

500

On November 8, 2019, MIRAIT
Corporation and MIRAIT Technologies
Corporation received the Committee
Prize (ASP SaaS Category) and the Best
Regional Contribution Award (DataCenter Category) during the ASPIC IoT
AI Cloud Awards 2019 held by
ASP-SaaS-IoT Cloud Consortium (ASPIC),a specified non-profit corporation*1.
In addition, 7 teams from 5 MIRAITGroup companies participated in the10th Access Design Contest (sponsoredby the Information &Telecommunications Engineering
Association of Japan) held on November
14, 2019, earning prizes from First Place
to Fifth Place*2.
In addition, TTK Co., Ltd. won top
prize in the General Participation
Category of the UAV (Drone)
Competition conducted as an event
during Engineering Exhibition TOHOKU‘19 held at Yume Messe Miyagi (Sendai
City, Miyagi Prefecture) on June 6, 2019.
*1 With the aim of developing and establishing IoT, AI,
and cloud services to serve as the information
infrastructure of society, ASPIC IoT AI Cloud Awards are
given to companies that provide such services in Japanthat are excellent and useful. The awards support the
expansion of IoT, AI, and cloud businesses and user
businesses and consists of seven categories.
*2 As the environment of the information andcommunications industry has diversified, there is a needfor technological capabilities that can provide thedesign, construction, maintenance, and operation of
information and communication networks in a cohesive
manner. Therefore, the event is held every year for the
purpose of improving design technology, level of safety
awareness of designers, and information sharing amongcommunications construction companies in Japan.

Number of Sites Using “Casting Table 3.0”
Contact Center Solutions

305

Sites of81

Companies

EV Charging Stations

Approx.

1,300

Stations

Number of ee-TaB*® Hotel Room Information
Service Terminals Introduced at Hotels

7,474

Terminals at

35

HotelsData current as of October 1, 2020

Corporate Report 202008

Unfolding the Medium-term Management Plan

Based on rapid changes in the business environment, the MIRAIT Group is implementing a three-year medium-term
management plan that began in fiscal 2019 to bring about sustainable growth.

Outline of New Medium-term Management Plan

Progress to FYE March 2020

The business environment surrounding the MIRAIT Group is at aturning point. In Japan’s information and telecommunications sector,
business is expected to expand with the telecommunications carriers,
which are the Group’s main customers, and the service expansion of
fourth-generation mobile telecommunication systems (4G) through theaddition of new frequency bands. Furthermore, fifth-generation mobile
telecommunication systems (5G) which we started to provide
commercial services for in March 2020 are expected to expand in the
future. In regard to the social environment, the social infrastructuredeveloped after the high-growth period, mainly in the Greater Tokyo
area, has entered the reconstruction stage. At the same time, we face
an aging society with a declining birthrate and shortage of labor. With
the arrival of the full-fledged era of IoT, the demand for new solutions
is increasing.
As stated in, the MIRAIT Group believes that it must strive toimprove management efficiency and productivity of existing
businesses, while strengthening the competitiveness of the “frontierdomains” in the medium- to long-term, in order to enhance its
corporate value and to achieve sustainable growth as a“Comprehensive Engineering and Service Company” amid changes inthe external environment. The Group established a new Medium-termManagement Plan for the three years starting in the fiscal year ended
March 31, 2020 and aims to achieve the targets set forth below.
Our targets for FYE March 2022: net sales of 450 billion yen,operating income of 27 billion yen (operating income ratio of 6.0%),
and ROE of more than 8.0%.

During the fiscal year ended March 31, 2020, the Japanese economy
continued to recover moderately on the back of strong corporate
earnings and improvement in labor market conditions. However,uncertainties have suddenly risen with the novel coronavirus infection(CAVID-19) pandemic.
• NTT BusinessIn the NTT business, the Group pursued growth in facility
management operations and facility improvement proposals andimplemented measures such as the consolidation of branch offices toimprove profitability, while strengthening its group-oriented
management structure. The Group worked as an integrated term tosupport immediate recovery of telecommunication facilities following
Typhoon No.15 and other natural disasters.
• Multicarrier BusinessIn the Multi-carrier business, the Group strived to win orders for new
frequencies in 4G and launch of commercial services in 5G. The Groupalso took steps to further enhance its technological capabilities andhuman resources. Specifically, the Group participated in verification
tests for new technologies in light of the upcoming full-scale rollout of
5G and established a training facility to develop multi-skilled engineersthat are able to handle both fixed-line and mobile telecommunication
construction and maintenance work.
• Environmental and Social Innovation BusinessIn the Environment and Social Innovation business, sales increased as aresult of growth in electrical, air conditioning and civil engineering
work, in addition to the completion of solar power projects. The group
added Tokaikoei Inc. as a subsidiary to expand its business in water
utility-related work.

*Frontier domains: Future areas of focus (fields in which this Group will take on the challenge offinding new business opportunities) within our Environmental and Social Innovation businessand ICT Solution business.

Key initiatives of the Fourth Medium-Term Management Plan09

1. Generate new business opportunities• Development of solution business by leveraging the expanded regional coverage achieved throughmanagement integration• Facing the challenge of new business opportunities transcending the conventional frameworkof business domains and technologies

2. Acceleration of transformationof business structure• Accelerate of transformation from carrier business to solution business• Promotion of transformation of quality in solution business (emphasis on profit)

3. Enhance productivity and reduce costs
through efficient operations• Ensuring operation of construction work through stronger ties with partner companies• Sharing of systems and consolidation of common operations

4. Strengthen human resources• Improvement of productivity and securing of human resources through work style reforms• Strengthening and utilization of human resources supporting expansion into new business domains
and transformation of business5. Promote ESG-oriented management
and improvement of safety and quality• Accurately perceiving business in terms of both risk and opportunity from the perspective of strengthening ESG• Establishment of the MIRAIT Group brand responding to customers’ needs for peace of mind and reliability
in “improvement of safety and quality”

6. Capital policy• Maintaining a sound financial standing• Management conscious of capital cost
• Consideration of providing shareholder returns aimed at realization of ROE of 8% or more

Corporate Report 2020

FYE March 2021 Business Plan
• ICT Solution BusinessIn the ICT Solutions business, sales increased thanks to the Group’s
efforts to grow LAN/ PBX-related domestic business, win of a large
software development project for a major consumer electronics
retailer, full-scale launch of Osaka No. 1 datacenter and increased
sales of goods such as mobile-related construction materials and PC/
servers for educational facilities. The Group added YL Integrated Pte
Ltd, a Singapore-based electrical construction company, as a
subsidiary effective April 1, 2020.
• Capital Policy
The MIRIT Group repurchased shares (total of 6.5 million shares/
10,453 million yen). In addition, the yen-denominated convertible
bonds due 2021 were redeemed early on December 30, 2019. All
stock acquisition rights were exercised, and treasury stock weretransferred to the holders of the convertible bonds.

In FYE March 2021, we anticipate an increase in base station
installation work and network construction work due to the expansionof 5G commercial services. We will also continue to provide solutions
that support new efforts such as local 5G, the GIGA school concept,
and popularization of telework. In addition, we will further promotemanagement efficiency by strengthening our group management
system.
Specifically, as for the forecast for consolidated financial result, net
sales is 435 billion yen and operating income is 22 billion yen.

As for the consolidated financial results, net sales increased by
17.4% year-on-year to 441.1 billion yen, operating income increased
by 6.3% year-on-year to 21.9 billion yen. Operating income ratio was
5.0% and ROE was 7.4%.
The frontier domain sales ratio reached 43% for the entire group(46% for companies other than the three integrated managementcompanies).

Targets and Results

Net sales

OperatingincomeROE

FYE March 2020
Results

FYE March 2021
Planned Figures

FYE March 2022
Targets

441.1

435

450

21.9

22

bil. yenbil. yenbil. yen

Operating income
ratio 5.0%

7.4%

bil. yenbil. yen-bil. yen

27

Operating income
ratio 6.0%

More than

8.0%

MIRAIT GroupKey Performance Indicators
The MIRAIT Group uses sales,
operating income, operating
income ratio, and ROE (return on
equity) as objective indicators (KPI)
for determining the status ofmanagement goals. We recognizethat these indicators will be usefulfor all stakeholders, including
shareholders, to evaluate theeffectiveness, feasibility, progress,
etc. of the Group's management
policies and strategies. Operating
income and ROE are also used as
calculation indicators in theperformance-linked stock-based
compensation plan.

Corporate Report 202010

Promote ESG-oriented Management

As it regards the global issue of sustainable development as a priority theme in management, the MIRAIT Group
promotes ESG in management and focuses on contributing to the SDGs from a mid- to long-term perspective.

Concepts ESG-oriented
Management
The MIRAIT Group has promoted Corporate
Social Responsibility (CSR) activities based on the
MIRAIT Way, which is made up of the BasicManagement Policy, Conduct Guidelines, and The
Corporate Ethics Charter. We will win long-term
trust from stakeholders by continually engaging inbusiness activities that respond to social demands
and expectations is also fundamental to the
MIRAIT GROUP.
In addition, we addressed the concept of “ESG
management” focused on the impact on mediumto long-term financial affairs together with theannouncement of the medium-term management
plan in May 2019. We will contribute to the
Sustainable Development Goals (SDGs) throughall our business activities. We will also work to
identify risks and opportunities for our businessfrom a wider perspective and to effectively
respond to them, strengthening our ESG.

Priority Themes and Issues: “Building and Maintaining a Bridge to the Future”
Priority Themes

Building and Maintaining
a Comfortable Society
Creating Value throughBusiness Activities

Building and Maintaining
Safe, Reliable Technical
Capabilities
Safety, Quality and Human Resources

Priority Issues

Relevant SDGs

Main Activities in FYE March 2020

• Construction/maintenance/reformof social infrastructure• Smart life evolution• Disaster resistant town planning• Building of infrastructure (construction work for telecommunications networks,
surveillance cameras, highways, water utility networks, etc.)• Efforts aimed at the start of the provision of full-fledged 5G service• Early rebuilding of infrastructure following major disasters• Wide range of drone experiments and utilization• Contribute to penetration of renewable energy (solar power EPC business)• Continuous improvement ofquality and safety• Reinforcing technical development
capabilities and engineering strength /employee training• Resolving labor and safety issues• Diversity• Workstyle reforms and work-life balance• Strengthen human resources (grow the number of qualitied staff,
encourage staff to attain multiple skills, achieve mor diversity)• Building hard and soft systems for safety(safety patrol, cloud-based drive recorders)• Hiring women, elderly and disabled individuals• Workstyle reform (proper management of overtime work and annual paid leave,
introduction use of ICT to achieve efficiency)• Environmental conservation• Social responsibility in the supply chain• Regional development• Corporate governance• Sale of goods that are environmentally-friendly• Adopted performance-based stock remuneration plan for directors
and executive officers. Expanded scope to three newly merged companies.
• Management decisions with a focus on capital costs (understanding WACC
and reduction of strategically held shares)• Enhance constructive dialogue with shareholders (overseas IR, explanatory
meetings for individual investors, and online-based explanatory meetings)

Promoting ESG-oriented
In ESG-based management, it is extremely
important to communicate with stakeholders andrespond to the issues discovered based on that
communication.
Our CSR Promotion Office and IR Promotion
Office play a central role, and we strive to renew
our awareness of issues and respond
appropriately through a wide range ofopportunities, including inquiries fromshareholders, investors, and evaluation
organizations.
We also share information and coordinate
initiatives with Group companies.

11

Corporate Report 2020

Building and Maintaining
the Trust of Society
Environmental Protection,
Local Communities and GovernanceInitiatives for SDGs in the MIRAIT GroupOperation of Integrated Management System

SDGs are very closely related to the business activitiesof the MIRAIT Group. The Group believes that
contributing to the SDGs is essential for being a"Comprehensive Engineering & Services Company"that constantly creates new value.
We are aiming to incorporate initiatives forresponding more aggressively to the SDGs in future
management plans.

As a business that supports the information and communication
infrastructure, the MIRAIT Group places particular emphasis on the fourareas of worker safety, work quality, environmental protection, andinformation security. It has created and operates a management
system that promotes initiatives in each of these areas. Since 2012, wehave been operating the Integrated Management System that deals
with those four areas in an integrated manner.
Our Management System Policy, which is the basis of theIntegrated Management System, requires all people involved in
MIRAIT Group business activities to be aware of CSR and clearlystates that each company and department of the MIRAIT Group
cooperate together to conduct PDCA management.

Policy on the Management System
To fulfill our business management policies and goals, we will construct,
operate, maintain and improve an effective and efficient integrated
management system.
• All individuals involved with the MIRAIT Group will acknowledge its
corporate social responsibility and seek to strengthen their personalcommitment to ethical principles and conduct as well as compliance.
• Each company and division of the MIRAIT Group will support mutual
collaboration and effective management activities based on the PDCA
(plan-do-check-act) cycle.
• All individuals involved with the MIRAIT Group will participate ineducation and training to enhance their management capabilities.
• We will regularly assess the effectiveness of this system, including
basic policies, and continuously strive for improvement.

Corporate Report 2020

12

Building and Maintaining a Comfortable Society

Bringing the Information and Communications
Environment to the Next Stage
Although 5G opens the path to new possibilities, it also presents various technical hurdles.
The MIRAIT Group strives to acquire and develop new technologies in order to become an important entity involvedin bringing about the 5G era.

Establishing 5G Area Construction Technology
Bringing the Information and Communications Environment to the Next Stage
The information and communications
environment that the MIRAIT Group has built,
maintained, and renewed is truly a core social
infrastructure. This infrastructure is currently
undergoing a major transition that occurs
once every ten years.
The provision of 5th generation mobile
communications systems (5G) commercial
services began in Japan in April 2020. 5G
offers high speed, high capacity,
simultaneous connection with multiple
devices, and low latency. Therefore, 5G will

become the industrial and social infrastructureof the era in which IoT (technology thatconnects everything to the Internet) is fully
utilized.
5G will gradually become widespread in
the future. The MIRAIT Group has beenworking on the development of new area
construction technology to accelerate thespread of 5G and has been able to provide
support solutions at an early stage.

Features of 5G
High speed/High capacity:
10Gbps max.
(More than 10 times faster than 4G)

Low latency: Less than 1 millisecond(1/10 of the latency of 4G)

Simultaneous connection with multiple
devices: one million terminals
per square kilometer(10 times the connection capacity offered by 4G)

Mobile Telecommunications System Evolution (Source: 2020 WHITE PAPER Information and Communications in Japan (Ministry of Internal Affairs and Communications)Year for introduction(Japan)

1G

2G

3G

4G

5G

1979 -

1993 -

2001-

2010 -

2020 -

Standard

Independent standards

Communications
systemAnalogMaximum speed(download)

2.4〜10kbps

Switching system

Circuit switching

Access system

FDMA

Terminals

International standardization

Digital
11.2〜28.8kbps

0.06〜14Mbps

0.04〜1Gbps

Both circuit switching (voice) and packet switching (data)
TDMA

Automobile telephones/Shoulder phones

10GbpsFully IP-based

CDMA

OFDMA

Feature phones

In order to actually demonstrate the featuresof 5G in various situations in various places,
there are technical issues that need to beresolved.
One of them is the straightness of radio
waves in the high frequency band used by 5G
and attenuation due to shielding frombuildings, etc. An approach using a reflector
has been proposed to reflect 5G radio waves
in the same way as with 4G. MIRAIT
Corporation evaluated the practicality ofmetamaterial*1 reflector products developedby the US startup, Metawave Corporation.
When we conducted radio wave propagation
experiments in the submillimeter wave
band*2, we confirmed that the results were at
the expected performance level. In addition,
we verified the effectiveness of metamaterialreflectors in 5G area construction in detail
based on a series of processes including
conversion of indoor spaces into 3D data,
radio wave propagation simulation, andreflector design.
Based on these technologicaldevelopments, MIRAIT Corporation started
providing companies that introduce local 5G
service with local 5G wireless area

construction solutions designed to support
activities including consulting, design,
construction, and license application gearedfor 5G service introduction from mid June
2020. At first, we primarily aim to meet theneeds of smart factories that visualize the
manufacturing process. We provide support
for 5G service introduction based on the levelof reliability unique to a telecommunications
construction company and advanced
technology, such as design using 3Dtechnology.
Furthermore, in addition to supporting
telecommunications carriers, we willcontribute to the efficient and detailed
formation of wireless areas using
submillimeter waves for 5G, a technology
expected to be widely used at locations suchas construction sites, logistics
sites/warehouses, stadiums, hotels, and officebuildings for which the building of private
networks is desired.
In addition to creating local 5G wirelessareas, we are also working to provide
comprehensive network construction thatcombines LPWA*3 and Wi-Fi.

*1 Metamaterial: An artificial substance that behaves in response to electromagnetic waves, including light,
in a way which is not found in substances in nature.
*2 Submillimeter wave band: The name of the high-frequency radio frequency band with wavelengths that are close to a millimeter in length.
3* LPWA (Low Power Wide Area): A technology that realizes both power savings and long-distance communications.

Opening of 5G Communication
Tower Facility Used for Training
Purposes
In preparation of the full-fledged
deployment of 5G, MIRAIT Technologies
Corporation opened a communication
tower facility used for training purposes
for the first time in western Japan inNovember 2019. It is located at Kansai
Hyper Techno Port (on Rokko Island in
Higashinada-ku, Kobe).
The purpose of this facility is forengineers to acquire multiple skills (wired
and wireless technology related skills) toperform construction and maintenance ofantenna equipment, wireless equipment,
and wiring equipment at significant
heights accurately and safely.
By actively conducting 5G training, weplan to train 180 engineers a year thatwill be capable of handling everythingfrom construction to maintenance of
fixed and wireless communications
equipment. In the future, we plan tofurther develop usage of the facilities toserve as a place to train engineers who
can take charge of construction andmaintenance, mainly in the westernJapan area, by providing engineers ofgroup companies and partner companies
with multiple skills.

Smartphones
Industrial/Social infrastructureLife infrastructure

Position

Communications infrastructure
Functional values

Information conveyance

Information processing
Content/Application providers

Major players

Telecommunications carriers

Information/Things control

Digital platformers

Communications equipment manufacturers
Note: In this table, 3.5G is included as part of 3G and 3.9G is included as part of 4G.

13

Corporate Report 2020

Measuring the characteristics of equipment used for local 5G wireless area construction

Corporate Report 2020

14

Building and Maintaining a Comfortable Society

Promotion of Smart Social Infrastructure Management
As many social infrastructures in Japan will soon need to be renewed, improving the efficiency of infrastructure
management has become a serious social issue.
The MIRAIT Group is working to solve this problem by making full use of drone technology.

Remote-based Building Inspections
Since inspections of the walls and roofs ofbuildings are performed at significant heights,
cost and safety are issues. By utilizing adrone, however, there is a possibility that a
precise and safe inspection can be performed
in a short amount of time.
In collaboration with Nankai Building
Service Co., Ltd., a group company of Nankai
Electric Railway Co., Ltd., MIRAITTechnologies Corporation conducted a trial
drone-based inspection of Suita City Martial
Arts Gymnasium SENSHINKAN (Building area:
Approx. 3,000 m2), a building managed by
Nankai Building Service. Drone photography
was performed by MIRAIT Technologies
Corporation and the tasks of captured image
analysis and report creation were performed
by Nankai Building Service Co., Ltd. As aresult, the cost was less than 10% of the costof an inspection requiring conventional
scaffolding and the inspection period was lessthan 20% of the time that conventional
scaffolding based inspection would require.
With MiratecDrone Corp. playing a central
role, we are promoting the use of drones
mainly for inspecting the roofs and walls oflarge-scale buildings.
In addition, TTK Co., Ltd. participated in"DOCOMO 5G Open Partner Program" held
by NTT DOCOMO, INC. and conducted averification test consisting of a remote building
exterior wall inspection using 5G, a drone, andAR smart glasses in November 2019. Drone
camera images taken and various flight data
gathered at the work site and images from theviewpoint of the inspector who operates thedrone were transmitted in real time to thecontrol center at a remote location. Based on
this information, the control center provided
instructions to inspectors at the work site anddisplayed various manuals on their smart
glasses screens.

15

Corporate Report 2020

shared in real time between contractors,
photos are automatically organized and text
information is digitized. Also, linking multiple
pieces of information and documents
eliminates the need for data entry work andmatching work.
In addition, MIRAIT Technologies
Corporation has proposed taking drone-based
water quality inspection samples andsurveying algae conditions by drone in order
to rationalize the water quality management
work at Kobe City Waterworks Bureau
reservoirs. With the cooperation of the same
bureau, we conducted an experiment in May
2019 at one of the city's water supply
reservoirs and confirmed its effectiveness.
Furthermore, in October 2019, SOLCOM
Co., Ltd. began offering nano gate , a building
water supply and drainage pipe self-cleaningsystem. Nano gate uses a weak AC

MIRAIT Technologies Corporation together with NTT FACILITIES,
INC., conducted a verification test of an image analysis systemusing a drone at Osaka Castle Park in March 2019. There are many
structures within the park of high historical and cultural value,
including Osaka Castle’s main tower.
1. Drone-based Park Surveillance
Images were taken twice in some areas of the park, and it wasverified whether differences between the first and second shots
could be automatically extracted. This technology can reduce
patrol inspection operations.
2. Highly Detailed Photography of Castle Stone WallBy modeling a stone wall with a complex shape in 3D, detailed
conditions of the stone wall can be grasped and used as basic
information for repair plans. It also contributes to grasping wallconditions during a disaster to formulate a recovery plan. This
verification test was conducted viewing the stone wall of Minami
Sotobori.

External building wall inspection using a drone
and AR smart glasses

New Management Methods for Water Supply and Drainage Facilities
Water utilities throughout Japan are
struggling to secure revenues from water
charges as demand for water declines. At thesame time, facilities (especially pipes) are
required to be renewed and madeearthquake-resistant. In addition, since it isdifficult for both the public and private
sectors to secure engineers and pass ontechnology, improving productivity is an issue
for business continuity. Together with
Kurimoto, Ltd., Photoruction, Inc., JFE
Engineering Corporation, and MIRAITTechnologies Corporation are collaboratingwith the Kobe City Waterworks Bureau todevelop a new methodology for water pipe
construction management operations. Bybuilding a cloud-based system, drainage pipe
types are entered into mobile terminals andjoint check sheets are created automatically,
construction documents and information are

Utilization of Drones in the Managementof Osaka Castle Park

electromagnetic field to prevent water stains
and urinary stones from sticking, which cancause rust-based corrosion and germ growth.
In addition to extending the life of watersupply and drainage pipes, maintenance canbe performed at low cost and a low amount oflabor at any water section equipment byminimizing the use of powerful detergents andchemicals to the utmost.
On October 31, 2019, MIRAIT Corporationacquired all outstanding shares of Tokaikoei
Inc. and its affiliated company,
Miyakokensetsu Corporation Both companies
have a deep track record in the construction
business with many first-class civil engineering
construction management engineers andmultiple directly managed waterworks teams.
As a result, the MIRAIT Group will promote
the expansion and strengthening of its water
related businesses.

3. Main Castle Tower 3D Model Creation
A 3D model of the main castle tower is created based on images
taken diagonally from multiple locations above around the target
area, not images taken from above the target area. Grasping thecurrent terrain and building conditions in 3D can be useful for
grasping conditions during a disaster to formulate a recovery plan.
We proposed this verification test, which was then adopted, in
response to the recruitment by a verification test team organized
by Osaka Prefecture, Osaka City, and the Osaka Chamber ofCommerce and Industry in consideration of EXPO 2025, whichaims to realize “A laboratory for a future society .”Demonstrating the Practicality and Versatility of Drones
In this verification test, we flew at an altitude lower than the
takeoff point and above the moat’s surface. As a result, thisflight demanded more care than a normal flight because thesensors required for stable flight were prone to error. In
addition, since the positional relationship with the stone walland moat’s surface could not be confirmed from the positionof the pilot, it was important to get an idea about thedrone’s location by coordinating with the safety operation
manager at the monitoring point.
Although it was a very difficult flight, we were relieved to beable to carry it out as planned. I hope that this verification
test will serve as a catalyst for local governments andbusinesses to learn about the practicality of drones andimagine how they can be used for various purposes.

MIRAIT Technologies Corporation(Currently MiratecDrone Corp.)

MATSUI Ryusei

Established Drone Specialty Company MiratecDrone Corp.
MIRAIT Technologies Corporation established MiratecDrone Corp.
on July 1, 2020 as a new company specializing in the drone
business based on its experience and track record in the drone
business that it has developed since 2017. We provide a wide
range of services centered on the equipment inspection field tomeet the needs of infrastructure equipment companies, local
public organizations, building management companies,
agricultural businesses, and so forth.
In particular, MiratecDrone will conduct business in the threeareas of Alliances, Sales & Systems, and Human Resources &Schools. In the central area of Alliances, the company will work to
expand not only photography, but also advanced image analysis
and surveying services in the areas of infrastructure equipment
inspection and agriculture. Furthermore, in the area of Sales &Systems, in addition to the sale and leasing of drone equipment, it
will strengthen its business by providing maintenance services andconsulting for the creation of drone operation systems. Moreover,it will provide basic skill training for piloting drones in addition tooperating specialized schools for skills such as structural inspection
and surveying.
With the company establishment, we started providing Drone
Park Manager, a service supporting the management of largeparks, Drone Water Checker, a service supporting water quality
inspections at reservoirs, and High Quality Turf Management
System, a service supporting golf course turf management as newservices utilizing the results of trials related to facility inspection.

Corporate Report 202016

Building and Maintaining a Comfortable Society

Supporting Smart Life Realization

Making Cities Disaster Resistant

By making full use of the technology held by the MIRAIT Group in a wide range offields including 5G, ICT, and energy systems, we support the realization of a smart life
in a multifaceted way that leads to the solution of social issues.

We provide solutions that utilize drones and high-precision sensors as a newsocial infrastructure to respond more smoothly to natural disasters that arefeared to intensify.

Creating a New Way to Enjoy Golf

Drone Utilization for Natural Disaster Response

Unprofitable operation of golf courses invarious parts of Japan has cast shadows over
local economies.
MIRAIT Corporation together with NTT
Communications Corporation, NTT
DOCOMO INC., FUJITSU LIMITED, andNagano Keikyu Country Club K.K., conducteda verification test of a business solution
utilizing 5G at a golf course in November
2019. A 28GHz band 5G communications
area is constructed and ball trajectory analysis
is performed using the player's shot image.

Then functions are used that display the
analysis results on the player's tablet andnext-generation display cart and live stream
high definition tee shot images taken by a 4K
360 degree camera. We smoothly showed thepoint where the ball fell and verified theability to check each other's playing situationin real time with other accompanying players.
In addition to improving play turnover rate
and usability, we aim to contribute toincreasing the number of users through newentertainment experiences.

Increasing Work Efficiency at Nursing Care Sites Through ICT
As the elderly population is increasing, theshortage of long-term care personnel is an
issue that is becoming more serious. The
Ministry of Health, Labour and Welfare is
promoting work efficiency at nursing caresites using ICT and AI.
In collaboration with KONICA MINOLTA,
INC., MIRAIT’s Hokkaido Branch Officestarted the sale of HitomeQ Care Support(HitomeQ), which promotes the introductionof ICT at nursing facilities. While HitomeQ

uses sensors to detect behavior andrespiratory abnormalities of residents in aliving room, it allows the situation to be
confirmed via video. In addition, a system forentering care records using a smartphoneenables immediate information sharing whichhelps reduce work time. In May 2019, Teine
Lotus Nursing Home, the first nursing facility
for which MIRAIT’s Hokkaido Branch Office
was in charge of HitomeQ construction,
opened in Sapporo.

Construction of a Local Production for Local Consumption Energy System
As a response to the demand for
decarbonization and the intensification ofnatural disasters, expectations are rising for
local production for local consumption energy
system that supplies electricity by distributing
relatively small power generation facilities
near where energy is consumed.
MIRAIT Corporation, ENNET Corporation,
and CCD Co., Ltd. are working together to
conduct this field trial, which will be
implemented from March 31, 2020 to March
31, 2021, for the interchange of surplus
electric power to users in the local community
by utilizing solar power generation andelectric vehicles (EV). We installed solar power

17

Corporate Report 2020

generation equipment and an EV power
conditioner at a conventional energy-saving
residence in Karuizawa-cho, Kitasaku-gun,
Nagano. Electric power consumption by thefamily within the residence is covered using
solar power generation. The privately owned
EV is charged using excess and power isdischarged from the EV at a designated timeand supplied to the docomo Shop Karuizawa
Store operated by CCD through ENNET. We
plan to stabilize ENNET’s power supply bydischarging a certain amount of power fromthe EV at specific times during the evening
when the amount of power generated
through solar power generation is reduced.

Screen displays the predicted ball landing location

Promoting New Workstyles
Due to the spread of COVID-19, theintroduction of new workstyles and newlifestyles has been strongly encouraged inJapan and abroad.
The MIRAIT Group develops and provides
solutions based on experience with COVID-19
countermeasures using ICT. One of thesesolutions developed by MIRAIT Corporation isConrepo (Condition Report). With Conrepo,
employees provide information including
physical condition and work location using asmartphone or PC, the data of which is thenaggregated in the system. Aggregated data isalways available to managers to check
employee health and their work locations.
The service was launched in September 2020
after undergoing a verification test involving
3,000 in-house subjects. We also provide
telework solutions that propose the optimal
combination of connection methods,
communication tools, and security measures,
as well as fever detection solutions forbuilding entry management.

The field in which drones are utilized fornatural disaster response is expanding year by
year. MIRAIT Technologies Corporation,
which has a significant track record in the areaof drone operation, has been working on thedevelopment of drone -based solutions thatare useful in the event of a disaster.
In September 2019, we added the Drone
Real-time Video Distribution Service to ourwide area operation service which utilizes
drones. We provide the real-time video
transmission system provided by Soliton
Systems and the drone aircraft and pilots
provided by MIRAIT Technologies
Corporation according to user request in acohesive manner. The disaster site is thenshot in real time with a drone and the video istransmitted to a remote base, such as thedisaster countermeasures headquarters, anddisplayed on the map of the shooting
location. By utilizing this functionality, even in
the event of a sudden disaster, disaster site
conditions including the conditions of rivers
and mountains can be accurately and clearlyshot and transmitted.
Furthermore, on July 1, 2020, we enteredan agreement with Koto Ward, Tokyo forproviding cooperative support for theutilization of drones during disasters. When
Koto Ward needs to inspect civil engineering
facilities using drones at the time of adisaster, MIRAIT Technologies Corporationand MiratecDrone Corp. will be dispatched totake charge of the inspection of civilengineering facilities in the ward. This effort is
aimed at early infrastructure recovery.
In Koto Ward, we have been studying theuse of drones for bridge inspection with
universities and private companies. Since
MIRAIT Technologies Corporation is based in

Koto Ward and is engaged in the drone
business, it has participated in verification
tests and study sessions for bridge
inspections using drones in Koto Ward. As aresult of the efforts so far, the agreement was
concluded after the drone study was found tobe effective.
With MiratecDrone Corp. playing a central
role, the MIRAIT Group will work to further
speed up and advance drone researchtechnology as well as improve its safety, andthe entire group will work to strengthen its
ability to respond to disasters using drones.

Overview of the Drone Real-time Video Distribution Service
MIRAIT Technologies Corporation

User
MobileNetwork

Drone

Subject

Internet

Video Transmission
DeviceMobileRouterTransmitterVideo Distribution
ServerNote: Can be viewed simultaneously
at six different locations.

Supporting Disaster Response Through Communication Technology
MIRAIT Corporation is verifying the usefulnessof LPWA, a communication technology thatrealizes long-distance data communication
with low power consumption and low cost,
due to the growing needs for IoT utilization inrecent years. As part of this effort, weestablish the LoRaWAN™* network in
November 2017 in the Tokyo Bay area
(Toyosu, Shinkiba, Edagawa) centered on
Toyosu where our Head Office is located.
Utilizing this communication environment,
Position Management Proof of Concept (PoC)
was implemented with our support as part ofa firefighting exercise with the Tokyo Fire
Department training team at the Tokyo Fire

Department Shiomi Training Center (Koto-ku,
Tokyo) on February 21, 2020. This provides asystem for precise tracking of positional
information of “people and things” outdoors
using high-precision GNSS devices. At
fire/disaster sites, it is essential to quickly
grasp actual conditions from a broad
perspective and provide directions andcommands to each participating unit.
However, there is a limit to grasping actual
condition based on conventional audio
reports via radio and visual inspection. In
response to the Tokyo Fire Department's
search for measures to perform quicker,
multifaceted determination of actual

conditions, MIRAIT Corporation built, in anexperimental manner, a system utilizing
communication technology. MIRAIT will utilize
the knowledge gained through this PoC tocontinually enhance LPWA networking
technology and IoT technology with the aimof contributing to disaster response.
* LoRaWAN™: LoRaWAN™ is a communication standard for IoT
established by the members of the LoRa Alliance including
semiconductor manufacturer Semtech and IBM. LoRaWAN™ is atrademark of Semtech Corporation.

Corporate Report 202018

Building and Maintaining Safe and Reliable Technical Capabilities

Pursuing Quality

Occupational Safety and Health

We work to meet customers’ expectations and trust with high-quality service and solutions bydevising mechanisms, developing people who run them, and creating environments where people
can exert their potentials.

We introduce and continually improve safety measures with safety as the top priority in operations
as our basic policy. The MIRAIT Group also supports employees in maintaining both physical andmental health.

Quality Management

Occupational Safety and Health Management

The MIRAIT Group has configured andoperates a quality management system
certified under the ISO 9001, which is an
important element of the integrated
management system.
Our Quality Policy, the foundation of ourquality management system, has three pillars:
rapid responses to legal regulations andcustomer demands; raising customer
satisfaction by improving the quality of
products and services as well as construction(while making operations efficient); andreducing quality risks. Our internal regulations
clarify concrete processes, procedures andcriterion. We have also clarified the quality

standards to be complied with for bothinternal operations and for procurement fromour partner companies.
We confirm and verify the quality of eachof our works every time. We are also pursuingmore accurate and efficient verification
processes by using such tools as mobile
terminals.
Every fiscal year, each group company setstargets (number of facility accidents, numberof detected issues in inspection, customer
satisfaction score, etc.) depending on its
operations. Results of the progress review
inform planning for subsequent fiscal years.

Sharing Safety Awareness
Authorization of workers for high elevation
work safety
For engineers to work at high elevations safely
and securely, the “Authorization of workers forhigh elevation work safety" has been in place
for both access and network systems.
Number of new candidates for authorization ofworkers for high elevation work safety(FYE March 2020)

Access system

113
22

Network system

Improving Technical and On-site Capabilities
The MIRAIT Group implements training andtechnical certifications to steadily improve thetechnical strengths that support service
quality.
Strengthening Construction Management
Capabilities
To strengthen management capabilities of
the worksite supervisors*, the core expert inbusiness operations, “Worksite Supervisor
Training” is carried out for newly appointed
worksite supervisors and deputy worksite
supervisors.
In recent years, with the increase in thenumber of construction sites and with thediversification and increased complexity of
construction works, worksite supervisors whoare in charge of construction works are
expected to have capabilities of dealing witha wide range of tasks and situations. The“Worksite Supervisor Handbook” that is aculmination of the MIRAIT Group’s
experience and know-how is used during thistraining. In addition to learning the basics ofconstruction management such as budgetingand cost control, it fosters pragmatic learningand problem-solving by adopting discussions

19

Corporate Report 2020

and role-playing.
Training Specialized Technicians
Varied training programs are organized todevelop specialized technicians at thetechnician development working group which
involves partner companies.
At the mobile skill training, basic
knowledge and know-how as well as keys tosafe construction are learned according to theskill and operational duties of each trainee, in
4 groups according to competencies.
Trainees can join across the boundaries ofbusiness departments. Since 2010 when the
training began, a total of 1,384 people haveparticipated and improved their skills.

The companies of the MIRAIT Group operate
an occupational safety and healthmanagement system certified under the
OHSAS 18001. We work in concert to comply
with laws and regulations as well as
occupational safety and health requirements,
reduce and eliminate occupational safety risks
through risk assessment and activities toanticipate danger, in addition to raisingawareness through educational exchanges inaccordance with the Policy on Occupational
Safety and Health, which clearly names safety
as the highest priority in operations. We
continuously improve our performance bysetting all actions that lead to accidents
resulting in injury or death, traffic accidents
and other seriously unsafe incidents assupervision check-points.
Striving Toward the Eradication of Accidents
and Improvement of Safety Quality
Getting the basics right in our daily actions isessential to achieve the goal of eradicating
accidents and improving safety awareness of
our operations.

For on-site workers to better understandsafety, we prepare materials such as
operational safety handbooks, conduct safety
trainings and review results, and make videosof accident scenes and visual presentations of
relevant laws and regulations. Fostering safety
communication with them, senior managers
including the president diligently visit
workplaces to raise each worker’s awarenessof safety.
MIRAIT Group Safety Convention
In conjunction with “National Safety Week” inJuly, we hold annual “MIRAIT Group Safety
Convention” in two locations, east and west,
with not only group companies but also partnercompanies taking part, to reconfirm safety
awareness and share knowledge on safetymeasures. (The number of attendants 880
members participated in the Tokyo meet and
616 members in the Osaka meet.) In FYE March
2020, we held presentations from each Group
company about examples of safety measures
as well as lectures by third-party instructors toraise safety awareness even further.

Danger Simulation Training (Reproducing Rooftop work
under Rainy Weather Conditions)

Danger Simulation Training
Aiming to eradicate falling and slipping
accidents which account for approximately
40% of all fatal accidents in constructionindustry, the MIRAIT Group holds danger
simulation training for employees (including
those of partner companies) at a facility wheretrainees can experience simulated accidents.
Experience helps trainees better understandthe importance of basic actions and safety
appliances. We expanded the branch offices tojoin the training and training items, and had
more than 123 trainees in FYE March 2020.

*Worksite supervisor is one of the supervisory positions to oversee
individual works appointed by the MIRAIT Group.

Ensuring Safety During
Emergencies

MIRAIT Technologies Corporation Employee Receives The Minister of Land,
Infrastructure and Transport's Award for Outstanding Engineering
On October 11, 2019, an employee of MIRAIT Technologies Corporation, ISOGAI Kiminori,
received the Minister of Land, Infrastructure and Transport's Award for Outstanding Engineering at
the Minister of Land, Infrastructure and Transport's
Award for Outstanding Engineering Award
Ceremony.
This award is given to construction engineers
who are directly engaged in manufacturing on thefront lines, possess particularly excellent skills, andmake a great contribution to the guidance andtraining of young employees. This year's award wasgiven by the Minister of Land, Infrastructure andTransport to 456 construction engineers from all
MIRAIT Technologies Corporation employee
over Japan.
ISOGAI Kiminori holding his award at the award
ceremonyIn response to social needs, we have
distributed a Pocket Manual for Major
Earthquakes and other Disasters to
employees in case of major contingencies. It
contains a collection of information regarding
principles of action to be taken and safety
confirmation methods when a disaster occurs.
While protecting employees from the
spread of COVID-19 and taking measures toprevent the spread of the virus in theworkplace, we also practice using a safety
confirmation system and confirm its
effectiveness in the practice of flexible
workstyles including working from home andremote-based work.

Support of Health Management

Mental HealthIn addition to regular health check-ups for all
employees, comprehensive medical
examinations (for those who have reached acertain age) and specified health guidance
are conducted for the benefit of healthmanagement by our employees. We also
provide recreation facilities in several
locations in Japan as opportunities to refresh,and we organize activities that promotehealth such as the walking events rallies heldby the Health Insurance Association.

The “stress check system”, made mandatory
under law from December 2015, aims toprovide primary precaution through raising
employees’ awareness of stress andpromoting workplace reform. Before the law
was enacted, the MIRAIT Group prepared a
Mental Follow-up System (such as
consultation desk) based on group analysis
after conducting stress check. Eachdepartment conducted mental stress training
through workplace reform. Efforts are being
made toward prevention of mental disorder.

Corporate Report 2020

20

Building and Maintaining Safe and Reliable Technical Capabilities

Workstyle Reforms

Diversity

We strive to provide attractive and worthwhile places to work where every employee with self-discipline can findmotivation, perform to their full potential, keep on working with physical and mental health, and feel their own
growth, while the organizational capabilities of our teams are exerted to the maximum.

We respect individual personality and seek to build workplaces where our
employees perform to their full potentials, regardless of age, gender, nationality,or handicap.

Advancing Efforts Towards
Workstyle Reforms

Empowering Female Employees

The MIRAIT Group announced its “Workstyle
Reform Declaration” by the President toreform workstyles throughout the Group to
cultivate sustainable growth as a“comprehensive engineering and servicesfirm” that responds to future changes in thelabor market and business environment.
We will push forward effective workstylereforms through the following coherent andintegrated approaches: (1) realization ofdiverse and alternative workstyles, (2)optimization of overtime work and promotion
for employees to take leave, and (3) effective
empowerment of diverse employees throughflexible workstyles.

Comprehensive Engineering & Service Company

A High-Productivity Company

A Venturous Company

An Attractive Company

Transform Organizational and Cost Structure
Enhance Productivity and Strengthen Cost Competitiveness

Further Work-Life Balance

Promote Diversity

Enhance Employee Skills

Organization Where Diverse Humanand Promote HealthResources Actively Participate

Initiatives
Realizing Diverse and Alternative Workstyles
Utilizing various ICT tools to serve as COVID-19
countermeasures, major meetings such as theBoard of Directors and management meetings
as well as events that were conventionally held
together can be held remotely to promote
working styles that can be implemented at
virtually any location. We are also working to
improve the efficiency of operations using RPA
and other means to improve the environment
for productivity improvement.
Optimizing Overtime Work and Promoting
Employees to Take Leave
We strive to create workplaces that facilitate
better employee health and work-life balanceby setting no-overtime days, encouraging
employees to leave work on time, andpromoting employees to take paid leave inconjunction with the spring and summer
breaks as well as new year holidays.
We pursue to reduce total working hours byheightening operational efficiency throughpromoting KAIZEN (improvement) activities

21

Corporate Report 2020and ICT use at each workplace, and bymonitoring suitable working hours with a PC
log system.
Empowering Diverse People ThroughFlexible Workstyles
We are building workplaces where all thediverse people can achieve work-life balanceand efficiently produce results, by promoting
flexible and modified working hours as wellas telecommuting (working from home, on
business trips, or at satellite offices) using ICT.

A Reforms to Corporate

B Reforms to Operations

Climate and Awarenessand Systems

Reforms to corporate climate andawareness include executives,
managers and regular employees
for the purpose of securing
workforce and enhancing
productivity.

Support

Reforms in methods to advance
operations that use operational
processes and IT systems to
succeed in securing workforce andenhancing productivity.

Three
Initiatives

SupportC Reforms to Policies and Rules
Reforms to employment regulations, personnel policies and human resource
development systems acting as the driving force to realize (A) and (B) above.

We devise action plans and analyze
challenges for each group company so thatfemale employees can reach their fullpotential and pursue their careers in a wide
range of arenas. We set targets chiefly on thefemale ratio of those hired as new graduatesand of those in managerial positions, andoccupational fields for female employees,
striving to increase all these.
In doing so, we seek to promote work-lifebalance and support those who work as theyraise children or nurse family members.

to maintain/improve the childcare leaveacquisition rate and are enhancing support
measures so that employees on childcare leave
can return to work smoothly and play an activerole in the company.
MIRAIT Technologies Corporation wasawarded the “Kurumin” certification mark by
the Minister of Health, Labor and Welfare forcompanies supportive of those who raisechildren.

continuity, workstyle, ratio of female
managers, and variety of career choices) andreceived the third level of certification, thehighest one. MIRAIT Corporation also satisfies
all the criteria for certification.

Presented the 2018 Excellence Award of the
Mayor’s Prize to a Leading Company
Promoting the Active Participation of
Women in Osaka CityMIRAIT Technologies Corporation received
recognition for its consistent activities as an
excellent company working to promote theactive participation of women by Osaka City
in addition to receiving the Ikumen Award as
a company supporting men to help raise theirchildren.

Supporting Those Who Work and Nurse
FamilySo that employees can continue working witha sense of security for a long time, parental
leave (available until the child reaches three
years of age) and reduced working hours
system (available until the child finishes thethird year of elementary school), plans areavailable corresponding to major life events
such as childbirth, infant care or nursing thatexceed levels stipulated by law. The childcare
leave acquisition rate among female
employees is 100% with the leave acquisition
rate for childcare and other reasons among
male employees at over 70%. We are working

Certified as an “Eruboshi” company“Eruboshi” is a certification program which
awards companies superior in empowering
female workers. Companies who formulate
and report an action plan to promotewomen’s performance in the workplace andimplement it outstandingly are authorized by
the Minister of Health, Labor, and Welfare to
use the logo mark. MIRAIT Technologies
Corporation met the criteria of all fivecategories (recruitment, employment

Support for Elderly Employees

Promoting the Active Role of Local Personnel in Foreign Countries

In response to the declining birthrate and aging
population in Japan, we have established areemployment system after retirement with theaim of supporting the active participation ofsenior human resources who hold qualificationsin advanced technologies required for thetelecommunications construction industry andhave created an environment where applicants
can continue to play active roles.
We also hold life plan seminars for
employees who have reached a certain age
and support them with work designing andfinancial planning after employment extension.

The MIRAIT Group currently runs overseas
bases in 15 countries and regions mainly in
Asia-Pacific area where locally hired personnel
takes on important roles. Through mutual
support such as dispatch of personnel
between overseas bases, we seek to enhanceoverall technical skills of local employees sothat each employee can demonstrate his or
her full capabilities.
MIRAIT PHILIPPINES INC., conducts
activities to deepen its connection and build
trust with local communities such as hosting a

Christmas party with children who havedisabilities.

Corporate Report 2020

22

Building and Maintaining Safe and Reliable Technical Capabilities

Human Resource Development
We support each employee’s growth from broad perspectives to systematically reinforce
human capitals that will underpin our future.

Personnel Training System
The MIRAIT Group considers human resource
development as one of the crucial
management priorities. We have designed apersonnel training system made up of a“sectorial model system” to enhance
specialized professional capabilities forbusiness operations and “stratified model
systems” to promote mastery of common
knowledge required at each professional level(see the diagram below). Supporting each

Internship Program

employee’s growth, we are reinforcing ourhuman base which, in turn, will sustain ourprospective businesses.
Our human resource development system
has been designed for employees to learn skills
and knowledge tailored to the role expected ofthem at each level and stage of their career,from trainings for those who just joined us tothose for senior managers. Especially richprograms have been developed for new
employees so that they can perform wellirrespective of their academic background. Ourinterview program encourages employees tomake daring challenges for professional
qualifications as they put in practice goals andcareer ambitions through discussions with theirsupervisor. A bonus system that rewards
different degree of employees’ challenges also
accommodate their positive attitude.

An internship for students is held with theaim of supporting the professional livesof Japan’s future generation that will be
responsible for the country’s future.
Through first-hand work experiences suchas connecting communication cables,
operating drones, riding in boom buckets
of bucket trucks, and visiting construction
sites, we provide opportunities forstudents to deepen their vocationalawareness and become aware of the typeof work they are suited for.

Expansion of Operations
Organizational Revitalization
Increase in Productivity
Growth Through Personnel Administration
Completeness of Training Environment
Evaluation/Appointment

Promotion of
Cross-industrial
Interaction

Business Headquarters

Branch Offices

Self-development

Sectorial Model
SystemPromotion of Interactive
Personnel Administration

Within and Outside
the Group Companies

Assurance of Diverse Human Resources
Hiring of New Graduates Hiring of Mid-career Employees

Stratified Model
SystemGain Multiple Skills

Women Older Adults

We make every effort to improve technicalcapabilities of each employee to build
high-quality and stable communication
facilities and systems in addition to
responding more quickly to theever-changing requirements of society inorder to bring satisfaction to customers.
The MIRAIT Group encourages andsupports acquisition of professional
qualifications in a wide range of fields as
proof of the technical strength of theemployees.
We actively develop capabilities in thetelecommunications, electrical engineering,Company Supportand ICT fields. We also seek to train drone
pilots for the expansion of drone-related
businesses. We have become a qualified
training body that provides skill certification,with our name listed on the website of the
Ministry of Land, Infrastructure, Transport andTourism.

2,500
2,000

Technical and Skill Training
Broad technical training for multiple skills●

Support for Qualification
Goals for professional qualifications set every
year at interviews with the supervisor
Monetary incentives for acquiring designatedqualifications●●

Technical Radio Operators for On-the-ground Services (Type 1)
Special radio operators for on-the-ground services (Type 1)

Electrical workers (Type 1/Type 2)

2,500
1,583

1,742

1,878

2,000

1,500

1,500

1,000

1,000

500

500

0

Students standing in the boom bucketof a bucket truck

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

Experiencing Different Corporate Cultures
and Diverse Work Duties

Improving Technical Capabilities

1,078

1,153

1,225

2018

2019

2020

0
2018

2019

2020

■All Employees of MRT, MTC, TTK, SOLCOM, and Shikokutsuken Corporation

Training programs at overseas operations
The MIRAIT Group conducts various training
programs for employees hired at theiroverseas bases. Operating primarily in
Singapore, the Lantrovision Group provides
cabling design and construction services fordata centers and offices at 27 bases in 13
countries and regions. Lantrovision has afull-time staff in charge of human resource
development and training and prepares awide range of programs from basic training

on on-site cable design, construction, andtesting to practical training such as bidding,quoting, and contracts. Through these efforts,
the company is working to improve theiremployees’ skills and motivation. In addition,
we are working to improve customer
satisfaction and strengthen our businesscompetitiveness by actively promoting theacquisition of certifications for each cablevendor and strengthening quality control.

Mentoring Program
A senior employee is appointed as thementor for each new employee, separate
from his or her supervisor at the assigned
section, for guidance and counseling. With
self-awareness and advice gained throughdialog, the program helps new employee(mentee) to grow in spontaneous andautonomous ways. With feedback after
periodic reports and monthly interviews, both
new employees and senior employees serving
as the mentor will have chances to grow.
Idea behind the Mentoring Program

Job Training Environment
At such places as Ichikawa Training Center(Ichikawa City, Chiba Prefecture), Kansai
Hyper Techno Port (Kobe City, Hyogo
Prefecture), the Expert Center (Sendai City,
Miyagi Prefecture), and the Technical Center(Hiroshima City, Hiroshima Prefecture),

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Corporate Report 2020

Technical Training

various equipment has been installed forfull-blown skills training and technology
development. In addition, we are thoroughly
implementing measures to prevent the
spread of COVID-19 and are actively
conducting online training. From new toveteran employees, we will continue toimprove our technical capability and ability topropose solutions on a daily basis to meet theneeds of our customers and contribute to therealization of the needs of society and thetimes.

Section Supervisor/
Senior

Guidance

New Employee(Mentee)

Mentoring Support
MentorCorporate Report 202024

Building and Maintaining the Trust of Society

Protecting the Environment
We have steadily been reducing energy use, CO2 emissions and waste in our daily business operations.
We also seek to control environmental impacts throughout the life cycle of infrastructure we develop andenvironmental footprints of our supply chain.

Environmental Management
The MIRAIT Group has acquired EMS(Environmental Management System ISO
14001) certification for our domestic groupcompanies. We have also put in place and run
environmental management systems in linewith this at overseas group companies one byone.
At each business location, environmental
aspects of our operations are identified andimpacts are assessed. We then design steps
to manage material environmental aspects,
formulate action plans for each fiscal year,
review progress to find the results andchallenges, informing continuous
improvement.
We conduct regular audits. One internaland one external audit are held once a year atour business base with ISO 14001

Contributing to Circular Society
certification. Over the six years from 2014 to
2019, the number of our violation ofenvironmental laws, accidents or pollutionthat would cause environmental problems,and environmental complaints were all zero(at the domestic group companies).
Sharing Results
We aggregate actual values of our main
performance indicators for environmental
protection activities (CO2 emission, electricity
consumption, consumption of fuels such as
gasoline and kerosene, emission of paper
waste, household waste and industrial waste,
and green purchasing payments) and monitor
and analyze them to promote our activities.
In summer and winter when electricity
consumption increases, each workplace sets

its own targets and organizes campaigns to
reduce electricity use.
Environmental Goals and Achievement Status
TargetFYE March 2020 Results

Reducing CO2 emissions by morethan 1% from the previous year

55.1% increase overFYE March 2019**Mainly due to an increase in power consumption amountaccompanying the start of the provision of our data center service.
Scope: Two companies (MIRAIT Corporation and MIRAITTechnologies Corporation) (use of electricity, heat, and steam
supplied by other companies)
Figures by fiscal year are provided on P.37 “Non-financial
Data” under the section “Environment.”

Solar Power Generator of the Kobe Technical Center

Mitigating Climate Change
Saving and Creating Energy at Construction
Centers
At local construction centers, we have been
installing LED lighting, demand monitoring
systems for power consumption, and rooftop
solar power generators, promoting energy
conservation.

Improving Fuel-efficiency of Vehicles
We work to raise company-wide awarenessand energy efficiency by introducing
low-emission, fuel-efficient vehicles, and byencouraging eco-driving for lessenvironmental impacts and fewer traffic
accidents.

Company Car with Eco-Drive Sticker

Supporting Environmental R&D and Environmental Education
thousand kWh

Promoting Power Saving
Most of the energy consumed in offices iselectricity. The MIRAIT Group is making
unified efforts to promote power saving
through multifaceted approaches: more
efficient use and reduction of printers andcopy machines; power-saving settings of PCs;
proper indoor temperature control; switching
off unnecessary lighting; and education forcontrolling elevator use.

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Corporate Report 2020

construction industry program – starting in2008 and, except for a few sizes, use only
ECO drums.
Promoting Recycling Construction Spent
Products
We promote recycling by collecting uniforms
and helmets after they have been used andusing a thermal processing (used as heat) bycontracting a specialized company.
Reducing Paper Use
We are promoting paperless meetings andstandardizing procedures for using
multifunction devices that eliminate
wastefulness.

Comprehensive Environmental Protection Measures
Green Development Guidelines
The MIRAIT Group has established Green
Product Development Guidelines compilingthe points that should be considered from theproduct design and development stage withthe preservation of the global environment inmind. During development, while bothobserving related laws and ordinances, we
also consider environmental effects over thelife cycle of the construction method,
product, or service.

Environmental Standards for Evaluating and
Selecting Business Partners
In evaluating and selecting business partners,
the MIRAIT Group considers their approaches
to CSR. We ask about environmental
considerations (promotion systems, chemical
substance management, CO2 emission
reduction, and industrial waste reduction) as abasis for our decision (see p. 27).

Green Purchasing
We purchase office supplies and paper basedon the recommendations of GPN* green
purchasing guidelines as much as practicable.
The green purchasing ratio for MIRAIT
Corporation and MIRAIT Technologies
Corporation was 84.4% and 79.0%
respectively in FYE March 2020.

*A list of items (per product category) to consider from environmental viewpoints uponmaking purchasing decisions, prepared by the GPN (Green Purchasing Network).

Biodiversity Conservation

Annual electrical power output of solar power
generators at 13 offices of MIRAIT Corporation and
MIRAIT Technologies Corporation (FYE March 2020)

388

Recycling of Construction By-products
We continuously work to minimize the volume
of construction by-products that occur at eachconstruction site and to discover ways torecycle by-products that do occur. As part ofthat effort, we switched from wooden drums
on which steel stranded wire is wound anddisposed of after one use to a reusable ECO
drum – part of a telecommunications

ECO Drum

The MIRAIT Technology Development Headquarters and NTT Business Headquarters Civil
Engineering Division provided supports such as providing experimental samples and teachingexperimental methods to confirm the temperature reduction effect of "heat-shielding pavement" in
graduate research on the environmental efficiency of Olympic heat countermeasures in the
Department of Environmental Systems Sciences,
Faculty of Engineering, Musashino University. We also
accepted corporate internships in the Tokyo-certified
environmental education program for students(ECO-TOP) in which the university participates. MIRAIT
Corporation will continue to support research anddevelopment related to environmental conservationand education.
Heat-shielding pavement testing

Rural Area and Neighborhood (Satoyama)
Conservation Activities
Since 2003, we have participated in satoyama
conservation activities organized by the
Osaka Green Trust, recruiting volunteers bothinternally and from partner companies. In FYEMarch 2020, we joined pruning and thinningin the Kurumatsukuri Forest of Ibaraki City inmetropolitan Osaka as in the previous year to
restore and maintain its favorable conditions.
We worked to conserve nature andbiodiversity and create green and pleasantenvironments.
Works in the Kurumatsukuri Forest

Businesses to Serve Environmental Protection
Direct and Indirect Contributions
We contribute directly to creating energy
infrastructure needed for a low-carbon society
through design, construction, operation andmaintenance of power generators that utilize
renewable energy (especially solar power),

installation and maintenance of LED lighting,installation and maintenance of EV charging
stations, and provision of energy
management systems and battery systems.
We are also taking an active part ininitiatives toward realizing high-efficiency

smart energy systems and smart cities, bysuch approaches as developing broadband
wireless sensor network systems andnext-generation mobility.

Corporate Report 2020

26

Building and Maintaining the Trust of Society

Social Responsibilities in the Supply Chain

Helping Local Communities

We work to promote social responsibility in the supply chain by considering commitment
to CSR when evaluating and selecting business partners.

As a member of local communities, we actively and consistently plan and carry out programs to make communities
more livable and lively.

CSR as Evaluation Criteria for Business Partners

Support Problem-solving in Local Communities and Society as a WholeAs part of the integrated management
system, the MIRAIT Group has internal rules
for the purpose of evaluating and selecting
business partners. The rules allow us to judge
the ability of business partners to supply
products and services following ourrequirements and to ensure procured

products conform to the requirements. Bothsuppliers of materials, semi-finished products,
and measurement instruments and service
providers are subject to the rule.
The MIRAIT Technologies Corporation
uses common items in evaluating andselecting domestic business partners. Items

Evaluation Items of Business Partners: MIRAIT Technologies Corporation
Item

Overview

Manufacturing certifications

Either the acquisition of the ISO 9001 certification, JIS certification, or establishment of a quality assurance system

Quality (1)Conformity of products for purchase to company plans

Quality (2)Any inconsistencies found in receiving inspections

Level of cooperation

Approach in cooperating with requests for product information

Supply capabilities

Availability of manufacturing facilities and inventory

DeliveryNo major impact on construction projects due to delayed delivery

Price

Level of compliance with company expectations

CSR

Active introduction of CSR efforts *Comprehensive evaluation through the questions in the table below

directly relevant to customer satisfaction andthose for assessing commitment to CSR are
included.
We give an overall score on commitment
to CSR after interviewing each business
partner about their environmental
considerations (promotion systems, chemical
substance management, reduction of CO2
emission and industrial waste emission) as
well as their contributions to local
communities (citizenship activities anddialogue with the communities, NPOs andNGOs). Evaluations are conducted once a
year for partners in business relations with us,
and as necessary when discussing a newpartner. We support corrective actions bypartners who were given low scores as aresult of evaluation.
The MIRAIT Corporation uses a similarsystem to conduct comprehensive evaluationsof business partners.

Area and Questions to Ask Partner Companies about CSR Activities
Area
1. Environmental considerations

2. Contributions to Local Communities

Questiona

Has your company put in place an environmental management system (ISO 14001) that it is continually improving?

b

Does your company properly manage chemical substances in product and manufacturing processes?

c

Has your company set targets to reduce CO2 emissions and does it work to establish manufacturing, fabrication, distribution and other processes
with a low environmental burden?

d

Has your company set targets to reduce industrial waste, and does it process that waste appropriately?

a

Does your company conduct social contribution activities that contribute to the development of the local community?

b

Does your company have a system to engage in a regular dialogue with the local residents, NPOs and NGOs?

Concepts of CSR Procurement
The MIRAIT Group has put in place its own
procurement guidelines to incorporate
considerations about social challenges andthe environment into the supply chain. We
seek cooperation from our suppliers in

27

Corporate Report 2020

operations related to building social
infrastructure, particularly telecommunications
engineering, our main business.
The guidelines in use have focuses on six
areas related to CSR: quality, delivery,

improvement activities, management stability,
environmental protection, and informational
resource management.

Support for the Tohoku Disaster Area
We participated in the community service
activities being carried out in Iwanuma City,
Miyagi Prefecture by the Miyagi Dengyo
Association (disaster volunteers). The MIRAITGroup continues to be part of these activities
that began in 2011, and has built flower beds
near the temporary housing, removed debris
from farmlands, and planted trees forrestoring tsunami control forests.
Donations for Recovery After Typhoon
Damage and Damage Caused by the Shuri
Castle Fire in 2019
We provided a donation of one million yen to
Chiba Prefecture, a location that wasparticularly damaged by Typhoon No. 15. The
typhoon, which occurred in September 2019,became a record storm in the Tokyo
metropolitan area. Furthermore, we sent
three million yen as a donation to theJapanese Red Cross Society 2019 Typhoon
No. 19 Disaster Relief Fund for damage
caused by the typhoon that occurred in
October of that year. Typhoon No. 19 was
one of the strongest typhoons that occurredin the past. We also donated one million yen
to Okinawa Prefecture as a donation to

support the recovery and reconstruction of
Shuri Castle which was damaged by fire.
Shareholder Benefit Option to Donate to theSpecial Olympics Nippon
The MIRAIT Group endorses the purpose of
the Special Olympics Nippon. From FYEMarch 2019, we included donations to theorganization in the menus for shareholder
benefits. This fiscal year, the third time, we
received the support of 422 shareholders anddonated a total of 761,000 yen. We will keepon contributing to the creation of a society
where diverse people can live together.
Utilization of Abandoned Fields and Rice
Paddies
In many parts of Japan, abandonment of once
cultivated fields and rice paddies isincreasing, causing damages by weeds, pests,
birds and animals to neighboring farmlands.
Murayama Doken Co., Ltd., one of partnercompanies of the MIRAIT Group, grows ricein formerly abandoned land in Tokamachi
City, Niigata Prefecture, to help the local
community. The MIRAIT Group supports thisactivity and internally recruits volunteers forrice planting and reaping.

Communication with Local Communities
Joining Festivals and Clean-up Activities
Traditional festivals around Japan is
becoming increasingly difficult to survive associal structures change. The MIRAIT Group
companies encourage employees to join local
festivals, sometimes as a bearer of mikoshi
shrine.
We also continuously take part in local
clean-up activities.

Harvesting “MIRAITOMAI premium rice”

NTT Chiba Group Inage Beach Clean-up Activities

Goryo Shrine Summer Festival

Participation in the Toyosu Festa
The MIRAIT Group has participated in the
Toyosu Festa held by Koto Ward, Tokyo,
every year since our head office moved to
Toyosu in 2010. In FYE March 2020, a total ofroughly 65 volunteers from Group companies
provided handmade air gun games, balloon
art performances and freshly-made popcorn.
Toyosu Festa

Corporate Report 202028

Corporate Governance and Internal Control

Corporate Governance and Internal Control
Basic Approaches to Corporate Governance
The MIRAIT Holdings Corporation recognizes the importance ofmanagement as a socially-responsible company and has put in placeorganizational structures and systems to ensure transparency andfairness in decision-making. Building relationships founded in trust withall of our stakeholders is positioned as the most important aspect ofmanagement.
We recognize building relationships founded in trust with all of our
stakeholders as indispensable to the realization of effective corporate

Policy and Procedures for the Nomination of Candidates for the Board of Directors and Auditors
governance. Therefore, we are enhancing the following to raise
effectiveness of our corporate governance:- Protect shareholder rights and equality among shareholders;- Collaborate with stakeholders other than shareholders in appropriate
ways;- Disclose information in appropriate ways and secure transparency;- Deliver on responsibilities, especially that of the board of directors;- Engage with shareholders

In the nomination process of candidates for the board of directors andauditors, the MIRAIT Holdings Corporation selects a wide variety ofcandidates from both inside and outside of the company, consults with
the Nomination and Compensation Committee chaired by anindependent outside director, and determines the candidates who haveexcellent personalities, superior insights and high managerial
capabilities, at the board of directors' meetings based on the replies
from the Committee.
In particular, outside directors who have abundant experience andknowledge across different fields can nominate individuals from theperspective of enhancing the medium- to long-term corporate value ofcompanies as well.
Additionally, we have set up a system for reciprocal cooperation
where the board of corporate auditors together with an internal audit
section and accounting auditors each perform independent
inspections.

Overview of Established Corporate Bodies

the firm by providing guidance and managerial supervision, and who
can carry out their roles and duties with a specialized and objective
viewpoint.
Moreover, as outside auditors we appoint those who have abundant
experience and knowledge across different fields, and can withindependent and objective views properly monitor the board of
directors’ managerial decisions, execution of duties, and theirobservance of laws and ordinances, enhancing transparency of theboard and serving greater corporate value.
The rationale for selection of each director and auditor is outlined in
the notice of general meeting of shareholders.

Corporate Governance Structure
We are a company with auditors, overseen by a board of directors,
board of corporate auditors, and accounting auditors.
As of June 25, 2020, the MIRAIT Holdings Corporation has 10
directors, two of whom are outside directors. We put a more effective
and efficient system in place by sufficiently functioning as a holding
company while having some board members serve core subsidiary

Name

Purpose/Authority

Representative

Members

Board of Directors

Body to determine fundamental
management policy for the MIRAITGroup in accordance with laws andregulations as well as the Articles ofIncorporation

President and Chief
Executive Officer
NAKAYAMA Toshiki

Directors

YAMAMOTO Yasuhiro, TOTAKE Yasushi,
TSUKAMOTO Masakazu, AOYAMA Koji,
HIRABARA Toshiyuki, IGARASHI Katsuhiko, BABA Chiharu,
YAMAMOTO Mayumi, SUZUKI Masatoshi

Auditors

KIRIYAMA Manabu, SEKI Hiroshi, HOSOKAWA Masayoshi,
KATSUMARU Chiaki (ISHIKAWA Chiaki)

Nomination andCompensation
Committee

Body established as an advisorycommittee for the board of directors
for the purpose of heightening theobjectivity in matters related to thenomination and compensation of
directors

Director (Outside)
BABA Chiharu

Directors

YAMAMOTO Mayumi, NAKAYAMA Toshiki

Board ofCorporate Auditors

Body to receive reports as well as
discuss and approve important
auditing matters

Corporate Auditor
KIRIYAMA Manabu

Auditors

SEKI Hiroshi, HOSOKAWA Masayoshi,
KATSUMARU Chiaki (ISHIKAWA Chiaki)

Executive
Committee

Body to receive reports and deliberate
on vital policies about importantmatters related to management
policies

President and Chief
Executive Officer
NAKAYAMA Toshiki

Directors

YAMAMOTO Yasuhiro, TOTAKE Yasushi,
TSUKAMOTO Masakazu, AOYAMA Koji,
HIRABARA Toshiyuki, IGARASHI KatsuhikoManaging
Exective Officer

MITSUYA Takaaki, KATSUKURA Tomoho

OperatingCompanies

TAKAGI Yasuhiro

Directors

YAMAMOTO Yasuhiro, TOTAKE Yasushi,
TSUKAMOTO Masakazu, AOYAMA Koji,
HIRABARA Toshiyuki, IGARASHI Katsuhiko

Auditors

KIRIYAMA Manabu, SEKI Hiroshi

OperatingCompanies

SASAKI Takao, WATANABE Yuji, MORIOKA Torao,
AKASE Kaoru

Directors

YAMAMOTO Yasuhiro, TOTAKE Yasushi,
TSUKAMOTO Masakazu, AOYAMA Koji,
HIRABARA Toshiyuki, IGARASHI Katsuhiko

Auditors

KIRIYAMA Manabu, SEKI Hiroshi

OperatingCompanies

SASAKI Takao, WATANABE Yuji, MORIOKA Torao,
AKASE Kaoru

Governance Structure
Election/Dismissal

General Meetings of Shareholders
Election/Dismissal

Election/Dismissal

MIRAIT Holdings
Audit

Board of Corporate Auditors

Board of Directors

Consultation/Reporting

Collaboration

Nomination andCompensation Committee

Collaboration

Instruction

Internal inspection section

Supervision

ReportingPresident and CEO(Executive Committee)

ReportingAccounting Auditor

Investigation

Compliance
Executive
Committee

Audit- Strategy Department- Finance and Accounting Department- Corporate Affairs Department- M’s Brain Center, etc.

Audit

Audit/Reporting

Reporting

VariousCommittees

Instruction

Business Management

MIRAIT Group Companies

Risk Management
Executive Committee
Consultation/Reporting

Body to report and advice oncompliance issues of the MIRAITGroup and examine measures, such as
raising awareness about compliance.

Body to deliberate and determine
policies, structure and other matters todrive the effectiveness and efficiencyof risk management

President and Chief
Executive Officer
NAKAYAMA Toshiki

President and Chief
Executive Officer
NAKAYAMA Toshiki

Note:1 BABA Chiharu and YAMAMOTO Mayumi are outside directors. 2 SEKI Hiroshi and KATSUMARU Chiaki (ISHIKAWA Chiaki) are outside auditors.

29

Corporate Report 2020

*Data as of June 25, 2020

Corporate Report 202030

Corporate Governance and Internal Control

Policy and Process to Determine Compensation for Directors
The compensation system for directors first approves the compensation
for directors at the Board of Directors’ meeting before determining thetotal amount (the total limit) at the General Meetings of Shareholders.
The individual director compensation is determined according to therole and responsibilities of each executive officer. The ratio of
performance-linked compensation and fixed compensation for thecompensation of directors is approximately 20% for the former and
80% for the latter.
The Nomination and Compensation Committee made up of two
independent outside directors and the President and Chief Executive
Officer was also established in December 2018 as an advisory body tothe board of directors for the purpose of enhancing objectivity andtransparency of decisions about the compensation for directors. This
committee reports the results of deliberations about such matters aspolicies for determining how to calculate compensation of executive
officers, to assist in decision-making by the Board of
Directors based on those findings.
The total amount of compensation for directors and other
remuneration was set as no more than 300 million yen per year (nomore than 30 million yen for outside directors, etc.) at the 1st General
Meeting of Shareholders held June 28, 2011. In addition, the 6thGeneral Meeting of Shareholders held on June 28, 2016 approved aperformance-linked stock-based compensation plan (Board Benefit

Trust) as a separate framework from the above compensation for
directors, which provides benefits to executive officers upon retirementin accordance with the regulations on issuing shares to executive
officers determined by the Board of Directors.
The introduction of this system further clarifies the link between
compensation, corporate performance, and share price so that
directors and shareholders not only share the benefits of rising shareprices but also the risk of falling share prices. The purpose of this plan is
to further heighten awareness about contributions to enhance mediumto long-term business performance and corporate value another level.
For FYE March 2020, we chose consolidated operating income andROE (return on equity), which should help heighten awareness about
contributions to the improvement in business performance andcorporate value of Group Companies, as the indicator for
performance-linked compensation. Also, for the Board Benefit Trust,based on the standard points given according to the positions ofexecutives, points calculated from the results of the consolidated
operating income and ROE are provided to the executives inaccordance with the internal regulations on issuing shares to
executives.
The consolidated operating income target in the initial business planfor FYE March 2020 was also set at 21.5 billion yen while the actual
figure was 21.9 billion yen with an ROE of 7.4%.

Directly Participating in the Formulation and Execution of Plans for the Chief Executive Officer
and Other Successors as well as Strategically Cultivating Future Candidates
The MIRAIT Holding Corporation appropriately cultivates plans for
future management executives, such as the Chief Executive Officer
based on the management policy and other management strategies.

The Board of Directors debates the selection of the Chief Executive
Officer based on the advice and findings of the Nomination andCompensation Committee chaired by an outside director.

Members of the Board of Directors (As of June 25, 2020)
President andChief Executive Officer

NAKAYAMA
ToshikiDirector and Managing
Executive Officer
General Manager of
the Corporate Affairs
Department

Director

TOTAKE
Yasushi

YAMAMOTO
Yasuhiro

Director and Managing
Executive Officer
Chief Financial Officer

TSUKAMOTO
Masakazu

Director and Managing
Executive Officer
General Manager of theStrategy Department

Director

HIRABARA
Toshiyuki

AOYAMA
Koji

Total Amount of Compensation for Each Executive Class, Total Amount of Compensation by Type, and the Number of Eligible Executive Officers (FY 2019)
Executive Class

Total Amount of Compensation(Million Yen)

Total Amount of Compensation by Type (Million Yen)
Fixed Compensation

Performance-linked Compensation

Number of Eligible Executive
Officers (People)

Directors (excluding outside directors)

138

101

37

11

Auditors (excluding outside auditors)

24

24

—

4

Outside executive officers

38

38

—

4

Appraisal of the Effectiveness of the Board of Directors
The MIRAIT Holding Corporation conducts self-assessments once a
year for the effectiveness of the board of directors for all directors
and auditors.
More specifically, we conduct a self-assessment through ananonymous questionnaire to primarily evaluate items from thestructure and operational status of the board of directors in addition
to its responsibility and functions to the state of the board of
directors as seen from the point-of-view of outside directors andcorporate auditors. The responses to these questions are collectedby an external law office with a duty of confidentiality and analyzed bya third-party organization. We verify and assess the current state of
the board of directors based on the results of this analysis andcontinually discuss any problems.

31

Corporate Report 2020

Feedback through surveys has shown the need for morecomprehensive deliberation about issues including initiatives for further
improving the state and supervisory function of the Board of Directors
and the creation of an internal control and risk management system.
We are working to sustain and enhance ongoing effectiveness of theBoard of Directors through discussion outlets such as the deliberative
assembly (set up in FYE March 2018) as a place for a free exchange ofideas about medium- to long-term management strategy andmanagement challenges by members of the Board of Directors.
Furthermore, outside directors and outside corporate auditors will
be provided with opportunities including inspections of businessestablishments and construction sites so that they can deepen theirunderstanding of our business content and current conditions.

Director

Director (Outside)

Director (Outside)

IGARASHI
Katsuhiko

BABA
Chiharu

YAMAMOTO
Mayumi

Director and advisor

Corporate Auditor

SUZUKI
Masatoshi

KIRIYAMA
ManabuCorporate Auditor(Outside)

Auditor

Auditor (Outside)

HOSOKAWA
Masayoshi

ISHIKAWA
Chiaki

SEKI
Hiroshi(KATSUMARU Chiaki)

Corporate Report 202032

Corporate Governance and Internal Control

Internal Control System
Our board of directors has adopted the Basic Policies for the Internal
Control System to ensure the appropriateness of operations of the
MIRAIT Group. We have also enacted Administrative Regulations for

Efforts to Enhance Communication
Subsidiary Companies and a Group-wide internal control system in oureffort to appropriately manage the Group through specific internal
controls at our subsidiary companies.

Collaboration between the Corporate Auditors, Accounting Auditors, and the Internal Audit Section
As of June 25, 2020, the Board of Corporate Auditors at MIRAIT
Holdings Corporation is made up of four corporate auditors, two ofwhom are outside corporate auditors. Including one outside corporate
auditor, two of these board members are full-time corporate auditors.
In principle, the Board of Corporate Auditors meets monthly andwhenever needed. It formulates audit plans, prepares audit reports,
appoints accounting auditors, agrees to the compensation of
accounting auditors, and makes resolutions, reports, and deliberations
throughout the year, such as by examining audits of the content ofproposals to the General Meeting of Shareholders.
When auditing the execution of duties by directors, corporate
auditors attend Board of Directors meetings to audit board meeting
management and content of resolutions. In addition to expressing
opinions when necessary, they regularly meet and share opinions withrepresentative directors. Full-time corporate auditors attend important
meetings, cooperate with the Internal Audit Department, view
important approval documents, etc., interview directors, communicate
with the directors and corporate auditors of subsidiaries, and share theirfindings with the part-time corporate auditors.
In addition, corporate auditors regularly exchange information with
the Accounting Auditor regarding audit plans, quarterly review reports,
audit results, quality control systems, etc., and work closely withaccounting auditors carrying out monitoring and verification activities todetermine appropriateness of accounting methods and the results.
As of June 25, 2020, the internal audit section of the MIRAIT
Holdings Corporation is made up of six members. The internal audit
section conducts audits of the MIRAIT Holdings Corporation and Group
companies with focus on operational audits after assessing the overall
internal control systems. We also are strengthening internal control
functions such as thoroughly checking the progress of implementing
improvements such as auditing guidelines and suggestions.
The corporate auditors and the internal audit section work throughmutual collaboration, such as exchanging views about auditing plans,
the progress of audits, and problems found in the results of audits byassembling as necessary.

Risk Management
Establishing the fundamental approaches of managing risks for theGroup in the Risk Management Regulations, we work to perform
effective control over various risk factors, and have established the Risk
Management Executive Committee – with the President at its chair – tomaintain the effectiveness of the risk management system.
Regarding information security, the group has introduced

Information Security Management Systems (ISMS; ISO/IEC 27001) andwill work painstakingly to prevent informational leaks and safeguard
assets. When an accident, including information security accident,
occurs, “0 Report” is immediately shared with management. To be
prepared for a resourceful response, we have set up an in-company
accident bulletin reporting system.

Compliance

Due Payment of Taxes

With the Compliance Regulations in place, the Compliance Executive
Committee – with the President as its chair – deliberates on individual
problems of the Group as well as manages the progress of promotion
activities. We have also distributed our Compliance Manual within theGroup to share awareness of business ethics throughout theorganization.

The MIRAIT Group observes all laws andregulations concerning taxation practices in all countries and regions
where it operates, consistently working to maintain and raise its
standards of taxation compliance.

Management of Insider Information as well as Timely and Fair Disclosure
The MIRAIT Group discloses accurate information in a timely manner
through TDnet and EDINET in accordance with the Disclosure Policy
published on the homepage and in other corporate materials. We also
make use of mediums such as our corporate homepage(https://www.mirait.co.jp/en/) and press releases in an effort to further
broaden our dissemination of information. Furthermore, the MIRAIT Group

33

Corporate Report 2020

strives to provide beneficial information that is easy for shareholders andother investors to understand, such as materials used in its IR activities.
We fully and properly manage information according to insider
trading regulations when in the possession of important information not
yet released to the public domain when talking with all shareholders
and other investors.

The Investor Relations Office undertakes investor relations activities as
the department in charge of investor relations under the supervision of
the Chief Financial Officer, who is the manager responsible for thehandling of information. The managers responsible for investor
relations handle consultations with all of our shareholders and otherinvestors as much as possible.
The MIRAIT Group holds financial results briefings twice a year for
analysts and institutional investors and distributes the information on its
website, etc. to provide a look at these briefings. In addition toproviding important information in English in a timely manner tooverseas institutional investors, we also engage in overseas IR activities
in the North American, European and Asian regions. Ourrepresentatives also work to explain matters fully at these financial
results briefings and in our overseas IR activities to encourage
constructive dialogue with all of our shareholders and other investors.
In addition, the MIRAIT Group participates accordingly inpresentations to individual investors and other events held bybrokerage firms.
We also provide feedback such as the opinions and views received
through venues such as financial results briefings and individual
consultations as well to the primary parties concerned with the Group.
Furthermore, the Group also sends MIRAIT Report booklets that
include business performance and topics to all of the shareholders
twice a year.

Efforts to Vitalize the General Meetings of Shareholders
The MIRAIT Holdings Corporation actively endeavors to ensure
vitalization of the General Meetings of Shareholders and smooth voting
practices on matters through visualization and early dissemination of
convocation notices, online voting, and the creation of English
convocation notices (abridged editions) among other measures.

In order to deepen the understanding of shareholders who could notattend the 10th General Meeting of Shareholders held on June 24,
2020, we distributed a video on our website and through other means
about the meeting as well as related business reports.

Message from Our Outside Director
With the dawn of the 5G era, the importance of the communicationand information infrastructure is increasing as the Covid-19 pandemic
is expected to accelerate the transition to becoming a society in which
work is performed remotely. In order for our company, which plays arole in the communication and information field, to respond
appropriately to such rapid changes in the business environment andfulfill its social responsibilities, it goes without saying that it isimportant to establish solid corporate governance that serves as thefoundation of management. Based on this recognition, the company ismaking diligent efforts such as establishing a voluntary nominationand compensation committee and conducting an evaluation of theeffectiveness of the Board of Directors. This year we welcomed afemale outside director in response to the social demand for diversity
in management. Therefore, I believe that our efforts are starting toshow results. Looking at the future, since there is an urgent need tofurther ensure the results of the management integration implemented
in 2018, I believe that establishing an appropriate group management
system in response to this is an important issue. I will continue
contributing to the company by utilizing the knowledge andexperience that I possess as an outside officer.

I was newly appointed as Outside Director in June 2020. We haveintroduced various measures and are effectively implementing them inorder to realize the purpose of the corporate governance code, whichis established for the sustainable growth of the company and theenhancement of corporate value over the medium to long term. As asound incentive, a performance-linked stock compensation system has
been established for officers and the Nomination and Compensation
Committee chaired by an outside director has been set up forconstructive deliberations. Prior explanations are provided on agenda
items so that outside officers can actively contribute to discussions at
the Board of Directors and fulfill their responsibilities. As aconsideration for further deepening understanding of company
business, outside officers are also provided with opportunities for
conducting on-site inspections. Two women have joined the company
as outside officers and there is a need to realize a level of diversity as
required by the corporate governance code. The company’s
willingness to improve governance is commendable. I hope that thecompany will continue to make efforts to add merit to the system, andI would like to help in doing so.

April 2005 Deputy President (Representative Director), Mizuho Trust & Banking Co., Ltd.
June 2007 Corporate Auditor (Full-time), Japan Energy Corporation(currently JXTG Nippon Oil & Energy Corporation)
June 2012 Corporate Auditor (Full-time),
JX Nippon Mining & Metals Corporation
June 2015 Outside Director, Saitama Resona Bank, Limited
Outside Corporate Auditor, Tohoku Electric Power Co., Inc.
June 2017 Outside Director (Member of Audit Committee),
Resona Holdings, Inc. (to present)
June 2018 Director of MIRAIT Holdings Corporation (to present)
Outside Director and Corporate Auditor,
Tohoku Electric Power Co., Inc. (to present)

April 1984

Outside Director

BABA Chiharu

Registered as an Attorney at law
Joined Takeo Ishiguro law firm
September 1990 Established Ginza Sogo law firm
January 2005
Established Ginza Shin Meiwa law firm
December 2010 Public Interest Member of the Central Labour Relations Commission
January 2019
Member of the Financial System Council,
Financial Services Agency (to present)
June 2019
External Audit & Supervisory Board Member,
Morinaga Milk Industry Co., Ltd. (to present)
June 2020
Outside Director of MIRAIT (to present)

Outside Director

YAMAMOTO Mayumii

Corporate Report 202034

Financial Data (Consolidated)

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 latest information can be found at our website (https://www.mirait.co.jp/en/)

Orders received/Net sales
500.0

Gross profit/Gross profit margin(billion yen)

60.0

(billion yen)(%)

446.5 441.1
392.6

400.0
323.3
300.0

12.7
50.0

375.9

326.3 312.9
283.2

SG & A/SG & A ratio

12.5

40.0

40.0

(billion yen)

52.1
12

11.8

46.9

(%)

10

50

(yen)

80

8.3

11.8
39.7

15

Dividend payout rati

Dividend per share

7.4

30.0
23.4

9

33.5
30.0

8

30.1

7.0

40

40

6.8
6

30

30

4

20

3

10.0

10.0

2

10

0

0

95.4
76.6

60
37.6

20

40

26.7

24.1

20.0
100.0

(%)

80

40

6

100

60

20.0

200.0

(%)

40

35
26.2

23.0

Total return ratio

24.1

13.5

20
13.5

0

0
2016

2017

2018

2019 (year)

2016■Orders received ■Net sales(billion yen)

(%)

20.6

10

25.0

2019

2016

(year)

(%)

21.9
8

20.0

2017

2018

23.2

5.7

10
8

5.8

30.0

(billion yen)

(%)

10.0

6.8

2019

2

2,200

(yen)

350

0
2016

2017

2018

2019

5.0

2

0

■Operating income ■Operating income ratio

Total assets/Net assets
400.0

0
2016

(year)

2017

2018

2019

1,600

3.4

250.0
331.4

236.4
199.5

218.7

150.0

(%)

2016

124.1
160.0

128.8

58.0

100

2.0

2017

2018

2019

1,570.5

100

61.2

60

50.0

0
2017

2018

■Total assets ■Net assets

35

20
0

0
2016

Corporate Report 20202019(year)

2016

2017

2018

2019

■Own capital ■Capital-to-asset ratio(year)

9.1

149.9

145.4

8.0
5.8

79.8

4.6

2017

2018

2019

(billion yen)

33.1
32.0

2017

2018

2019

(year)

7.4

16.0

2018

2019

(year)

12.5
10.4

32.2
30.0

31.6

9.0
2.5

3.0
18.1
15.0

-3.0

13.2

2019

(year)

5.6

-11.1

2017

■Cash and equivalents■Interest bearing debt
■Net cash

20182019 (year)

2016

-2.8

-7.1

-9.0
3.8

-9.1

-10.0

-15.0
2016

-1.2

-1.9
-3.6

0

0

7.9

6.4
4.7

19.0

8.0

4

2018

2017

(billion yen)

-6.4

2017

2016

Cash Flow
15.0

24.0

1.2

2016

3.0

0
2016

(year)Cash and equivalents/Interest bearing debt

15.4

8

2.8

4.0

■Capital investment ■Depreciation

8.8
40

19.3

12.6

0
2016

5.2
80.0

(year)

12.0

50

0

40.0

1.6

(billion yen)

4.0

(year)

(%)

137.2

100.0

140.7

2019

295.3

■Net income ■Net income ratio

80

59.3

20.0

35.6

196.4

56.9

2018

Capital investment/Depreciation

200

1,733.1

27.8
240.0 218.0

2017

16.0

1,400

0

0

Return on equity (ROE)(billion yen)

200.0

2016

(year)

(yen)

150

215.4

320.0

2019

2

6.4

5.0

■Ordinary income ■Ordinary income ratio

352.1

2018

250

4

3.7

(year)

Own capital/Capital-to-asset ratio(billion yen)

2017

300

1,933.8

1,800

11.5
10.0

2,000

400
0

2016

Net income per share

2.3
5.0

0

(year)Net assets per share

6

15.2

4

3.7

3.5

10
8

15.0

10.5
4

2018

2,006.4

25.0

6
5.3

5.0
10.0

2017

25.7

17.8

15.0

2016

(year)Net income/Net income ratio attributableto owners of parent

20.0
6

5.5

5.3

2019

0

■SG & A ■SG & A ratio(billion yen)

16.7

10.0

2018

Ordinary income/Ordinary income ratio

21.9

20.0
15.0

2017

0

■Gross profit ■Gross profit margin

Operating income/Operating income ratio
25.0

0

2017

-13.5
2018

2019

(year)■Operating cash flow ■Investment cash flow ■Financial cash flow ■Free cash flow
Net income attributable to owners of parent in FYE March 2019 includes extraordinary profit(10 billion yen) that accrues from the management integration

Corporate Report 202036

Non-financial Data
Status of Shareholders

As of March 31, 2020

The MIRAIT Group also prepares and discloses material non-financial data from its business activities,
taking steps to widen its scope.

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

Provision of renewable energy***

Total authorized shares: 330,000,000

370,000(kW)348,724

363,234

Number of Qualifications*

Corporate citizenship spending

14,00040

Total outstanding shares: 108,325,329 shares (including 479,590 treasury shares)(million yen)36

12,345＊ 12,400
299,795

296,000

11,200212,118

222,000

30

8,400

7,548

7,328

30

Major shareholders

20

148,000

5,600

＊

4,570
3,432

74,000

4,600

3,386

3,278

0
2016

2017

2018

0

2019 (year)*Generation capacity (cumulative total) of our groupconstruction facilities

Name

10

2,800

0

2015

2016

2017

2018

2019 (year)

2015

2016

2017

2018

2019 (year)■Number of software qualifications■Number of construction qualifications

Occupational Safety and HealthOccupational accident frequency rate**

Number of shareholders: 23,777 (excluding treasury shares)

27

7,273

163,158

2015

36

35

FYE March 2016

FYE March 2017

FYE March 2018

FYE March 2019

FYE March 2020

0.00

0.18

0.19

0.00

0.18

Diversity

Number of shares held (in hundreds)

Ownership (%)

Japan Trustee Services Bank, Ltd. (trust account)

109,288

10.13

Sumitomo Electric Industries, Ltd.

95,605

8.87

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

73,563

6.82

Sumitomo Densetsu Co., Ltd.

24,886

2.31

MIRAIT Holdings Employee's Stock Option Plan

19,487

1.81

SSBTC CLIENT OMNIBUS ACCOUNT

18,458

1.71

J. P. MORGAN BANK LUXEMBOURG S.A. 1300000

16,899

1.57

NORTHERN TRUST CO. (AVFC) RE FIDELITY FUNDS

16,556

1.54

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

16,387

1.52

JP MORGAN CHASE BANK 385151

14,581

1.35*1 The ratio of shares held is calculated after subtracting the treasury shares (479,590).
*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.

FYE March 2016

FYE March 2017

FYE March 2018

FYE March 2019

FYE March 2020

Ratio of women in new graduate hires

19.5%

23.9%

24.6%

16.7%*

23.1%*

Ratio of women in managerial positions

2.1%

2.7%

2.9%

2.7%*

2.7%*

1

1

1

2*

3*

Rate of parental leave taken by female employees**

100%

100%

100%

100%

100%

Number of shares by ownerRate of annual paid leave

53.8%

53.3%

57.1%

64.7%**

63.0%**

Female directors (officers) and number of outside directors

Environment

CO2 emissions (t-CO2)***FYE March 2016

FYE March 2017

FYE March 2018

FYE March 2019

FYE March 2020

7,117

7,095

8,359

8,868

13,755

Share distribution by owner (excluding treasury shares)(shares)ratio

Financial institutions

36,769,369

34.1%

Financial Instruments business operators

1,074,370

Other corporations in Japan

Number of shares by owner(shares)ratio

Financial institutions

58

0.2%

1.0%

Financial Instruments business operators

38

0.2%

18,797,695

17.4%

Other corporations in Japan

305

1.3%

Foreign corporations, etc.

27,307,321

25.3%

Foreign corporations, etc.

238

1.0%

Individuals/other

23,896,984

22.2%

Individuals/other

23,138

97.3%

Total (excluding shares owned by the company)

107,845,739

100%

Total (excluding shares owned by the company)

23,777100%

About the Numerical Data
Not indicated: Value is the total for MIRAIT Holdings Corporation, MIRAIT Corporation, and MIRAIT Technologies Corporation – the three companies*: Value is the total for MIRAIT Holdings Corporation, MIRAIT Corporation, MIRAIT Technologies Corporation, TTK Co.,Ltd., SOLCOM Co.,Ltd.
And Shikokutsuken Co.,Ltd. - the six companies**: Non-consolidated (MIRAIT Corporation only)***: Total for MIRAIT Corporation and MIRAIT Technologies Corporation

37

Corporate Report 2020

Corporate Report 202038