Comprehensive Engineering and Service Company

MIRAIT Group

Corporate Report

2018

MIRAIT Holdings Corporation
CSR Office
5-6-36, Toyosu, Koto-ku, Tokyo, Japan 135-8111
Phone: 81-3-6807-3120 Fax: 81-3-5546-2962

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

17-0020

適切に管理された森林資源を用紙の材料にしています。

植物由来の溶剤を主成分としたインキを使用しています。

有機溶剤を含む廃液を出さない印刷方式です。

紙・板紙へのリサイクルを阻害しない印刷物です。

グリーン購入ネットワークの「印刷サービス」発注ガイドラインに基づいて制作しています。
※「印刷サービス」発注ガイドラインは2013 年 8 月 2 日に改定しております。

CONTENTS

Group Overview

Corporate Report

Overview of MIRAIT Holdings Corporation

2018

Date of establishment: October 1, 2010
Head office: 5-6-36, Toyosu, Koto-ku, Tokyo
Representative: President and Chief Executive Officer Masatoshi Suzuki

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Stock Listing: 1st Section of Tokyo Stock Exchange (Security code: 1417)
Total outstanding shares: 85,381,866
Ratings: Rating and Investment Information, Inc. (R&I) AJapan Credit Rating Agency, Ltd. (JCR): A
End of fiscal year: March 31
Number of employees (consolidated): 9,010 (as of June 30, 2018)

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21
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23

▶ MIRAIT Corporation▶ MIRAIT Technologies Corporation▶ TTK Co., Ltd.

▶ Lantrovision (S) Ltd. (Singapore)

M’s Frontier Corporation

AST-ENG Corp.

Tobu Denwakoji Corporation

Lantro (S) Pte. Ltd.

DAIMEI TECHNO CO., LTD.

Lapisnet Co., Ltd.

Hokubu Densetsu Corporation

Lantro (Malaysia) Sdn. Bhd.

KOKKO SYSTEMS CO., LTD.

COTONET ENGINEERING Co., Ltd.

Morioka Denwakoji Corporation

Lantro (HK) Limited

Tohoken System Engineering Corp.

Nara Construction Co., Ltd.

Hakkou Tsushinkoji Corporation

VRnet (S) Pte. Ltd.

Meisei Correspondence Co., Ltd.

Ligare Co., Ltd.

Senshu Tsushinkensetsu Corporation

Lantro (Taiwan) Ltd.

Nisshin Tsuko Co., Ltd.

Agility RISE Co., Ltd

Yamagata Tsushinkoji Corporation

Lantrovision Korea Co., Ltd.

DAIMEI NETWORK CO., LTD.

Comlead Co., Ltd.

Fukushima Denwakoji Corporation

Lantro (Shanghai) Co., Ltd.

DAIMEI TSUSAN CORP.

Nishinihondenko Corporation

TTK Techno Co.,Ltd.

Hangzhou Lantro Co., Ltd.

SINKO ELECTRIC CORP.

GRAND CREATE CO., LTD.

Appsilan Asia Pte. Ltd.

MIRAIT-X Corporation

KATAKURA CONSTRUCTION Co., Ltd.

Infilan Pte. Ltd.

TODENTSU Access Corporation

MIRAIT Information Systems Co., Ltd.

Lantro Technologies India Private Limited

TODENTSU Network Co., Ltd.

ACTIS Corporation

Lantro Phils. Inc.

Nissetsu Co., Ltd.

Practical Solutions Inc.

Lantro (Penang) Sdn. Bhd.

Okisokou Co., Ltd.

Fucom Corp.

ADNOS SOLUTIEN Pte. Ltd.

Libnet Co., Ltd.

Kinki Denki Corp.

Innovative Energy Systems & Technology Pte. Ltd.

TIMETEC Co., Ltd.

MIRAIT Technologies Australia Pty. Limited(Australia)

Altro Solutions Pte. Ltd.

MIRAIT Technologies Myanmar Co., Ltd.
(Myanmar)

Lantro (Thailand) Co., Ltd.

Nippon Sangyo Corporation
Nihon Toyocomu Corporation

MIRAIT PHILIPPINES INC. (Philippines)

Lantrovision Inc.

Lantro (Vietnam) Co., Ltd.
Lantro (Cambodia) Co., Ltd.
Lantro Myanmar Co., Ltd.

DAIMEI SLK (PRIVATE) LIMITED(Sri Lanka)

Including consolidated subsidiaries and overseas subsidiaries (as of October 1, 2018)01

Corporate Report 2018

CSR of the MIRAIT Group

Advancing Telecommunications Infrastructure
Reinforcing Telecommunications Infrastructure Against Disasters
Helping Resolve Societal Challenges
Supporting the Revitalization of Communities
Accelerating Work-style Reforms through ICT Solutions

Pursuing Quality
Work-style Reforms
Diversity
Human Resources Development
Building and Maintaining the Trust of Society

List of Group Companies

Line Connect Corporation

Third Mid-term Management Plan

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

Number of consolidated subsidiaries: 54 (as of March 31, 2018)

HOPE NET Co., Ltd

President’s Message

Building and Maintaining a Comfortable Society

Capital: 7 billion yen

Trust System Corporation

Our Business

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29
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35
37
38

Protecting the Environment
Occupational Safety and HealthSocial Responsibilities in the Supply ChainContribution to Local Communities
Corporate Governance and Internal Control
Financial Data
Non-financial Data
Status of Shareholders

Editorial Policy

Boundary

Related Information on our website

Guidelines Referenced

This report outlines the policies, plans andachievements of the MIRAIT Group toward
creating a sustainable society. The MIRAITGroup seeks to proactively deal with various
social issues. This report is divided into
sections based on three themes: “Building and
Maintaining a Comfortable Society” (forBusiness Operations), “Building and
Maintaining Safe, Reliable Technical
Capabilities” (for Product Quality, Occupational
Safety and Human Resources), and “Building
and Maintaining the Trust of Society” (forEnvironmental Protection, Local Communities,
and Governance).

In this report, we outline the approaches andachievements of the CSR efforts of the MIRAITGroup as a whole. Please note that eachperformance figure in the report is disclosedwith the boundary by which it is available atpresent (as indicated in the text or in
supplementary notices).

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

GRI Sustainability Reporting Guidelines (G4)ISO26000 (Guidance on Social Responsibility)

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

Reporting Period

Date of Publication
November 2018

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

Fiscal 2017
(April 1, 2017 to March 31, 2018)(note: certain portions refer to activities fromboth before and following the above-mentioned
period)Corporate Report 201802

Our Business

Building and Maintaining

Overseas Business Expansion
Multicarrier Operations in Australia

Starting with telecommunications infrastructure, we build a broad range ofsystems offering greater convenience in daily life and society as a whole andensuring greater safety and security (comprehensive engineering:
configuration), and maintain them (servicing: maintenance and operation)
both in Japan and overseas.

NTT Operations● MIRAIT Group has been contracted by a major

telecommunications firm to update outdoor systems in four
eastern states (New South Wales, Victoria, Queensland, andTasmania) vastly larger than Japan (50,000 units over three
years beginning in 2017).
● MIRAIT Group facilitates more

efficient construction by
databasing the capabilities of
local construction partners andstandardizing operations inaddition to developing
proprietary IT tools for remotecentral monitoring of
construction.

The MIRAIT Group builds, maintains and operates the NTT Group’s
fixed-line communication facilities throughout every region in Japanfor both NTT East and NTT West. We are currently involved in
multiple construction projects to advance the Hikari Collaboration
Model as the optical fiber networks driven by the NTT Group become
even more prevalent. When disaster strikes, our emergency repairs
and reconstruction safeguard these communication networks.

Multicarrier Operations in the Philippines● MIRAIT Group is handling the requirements to provide Fiberto the home (FTTH) for major telecommunications firms as
the Philippine government advocates broadband
standardization● MIRAIT Group has not only

Multicarrier

The MIRAIT Group builds, maintains and operates mobile
communications facilities to support the increasing speed and capacityof mobile networks. We are currently involved in the construction toadvance 4G networks while participating in trials for 5G networks.
Our Group also builds and maintains fixed-line communications
facilities for communication carriers, conducts CATV, and builds andmaintains fixed-line and mobile communications facilities overseas(Australia, Philippines, Myanmar, and Sri Lanka).

expanded sites to the capitalof Manila but also Cebu City,
Bacolod City and thesouthern city of Davao City.

Sales by Segment

Multicarrier Operations in Myanmar

27%

32%
MIRAIT Group Sales

312,9bil. yen
Environmental andSocial Innovation

The MIRAIT Group builds, maintains and operates solar power
generation systems, EV charging stations and storage battery systems
to make new energy infrastructures more accessible. We also
undertake electrical and HVAC engineering works including
undergrounding of utility poles, wiring and cables as well as installationof LED lamps, contributing to building next-generation environmental
and social infrastructures.

14%(Fiscal 2017)● MIRAIT Group has been recognized as the primary contractor

for outdoor construction by major telecommunications firms
and built an optical fiber backbone of 3,000 km (as of March
31, 2018).
● MIRAIT Group has construction offices in Mandalay, whichis the second-largest city in Myanmar, and has driven theconstruction capabilities in difficult terrain as well as
remote country areas. Our Group is also in charge of
construction in the capital of
Naypyidaw.
● The MIRAIT Group respects the27%

predominate Buddhist culture in
Myanmar and makes all thenecessary considerations when
undertaking construction as it
does in every area with otherpredominate religions.

ICT Solutions in Singapore■NTT Operations■Multicarrier

ICT Solutions

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Corporate Report 2018

The MIRAIT Group provides high-quality solutions through ICT
technologies that address wide-ranging social and business challenges,
such as introducing LAN and Wi-Fi, ensuring security, advancing
building management and promoting operational efficiency. We havebegun building and operating data centers and using drones to further
expand the breadth of these solutions.

■Environmental and Social Innovation■ICT Solutions● The MIRAIT Group made Lantrovision whose businesses

include LAN design, installation, maintenance, consulting
and device sales in 13 Asian countries its wholly-owned
subsidiary in January 2016.
● Our access to the customer base of Lantrovision’s sales

network in 28 cities opens avenues to both inbound(Japanese bases ofmultinational organizations)and outbound (Asian basesof Japanese enterprises)
LAN construction demand as
part of the MIRAIT Group.

Corporate Report 201804

President’s Message

Challenging new frontiers

Masatoshi Suzuki
MIRAIT Holdings Corporation
President and Chief Executive Officer

Facing a turning point of the era,
we will tackle societal challenges
with our “comprehensive engineeringand services” capabilities.

In the Third Medium-term Management Plan announced in
April, 2017, the MIRAIT Group set "expanding the business
operations and business model innovation" as the firstamongst its key measures, clearly indicating its challenge
into "frontier domains" that are beyond the existing
business. This shows our stance toward responding to newsocial needs based on the foundation of our achievements
until now while also the will to carry on the frontier spiritthat has been passed down since our establishment.
We have been amassing technological expertise throughour works in telecommunications, civil engineering, andarchitecture; electrical, power, and switching; and wirelessand broadcasting. In addition to these fields in which wehave long been cultivating our capabilities, we have beenbuilding on ICT related technologies over the recent years.
On the basis of such technological capitals, being refinedand enriched by adding new elements, we engage inprojects in such promising areas as management of aging
infrastructure, environment and energy, Wi-Fi solutions, IoT
and big data, and AI. We actively learn about works ourcustomers and partners do and design our engineering andservices that match each situation, pursuing a right balance
between costs and quality. As making such concrete andconsistent efforts, we are eager to make special
contributions to advancing smart cities and smart life in thechanging society, as engineering professionals.
We plan to grow the combined sales of environmental
and social innovation and ICT solution businesses, slightly
less than 40% in fiscal 2016, to approximately 60% by theend of fiscal 2020.

Increasing productivity
At a turning point of the era
I vividly perceive pivotal changes taking place right now
through managing our businesses each day. The three“Ds”, digitalization, decarbonization and demographic
change, gathering continued attention as global megatrends,
are causing a societal metamorphosis everywhere, which is
unseen in the past and can even be destructive. In Japan, its
aging society has seen changes in the age composition andfinally a decline in the total population size. In the meantime,advances in technology have been remarkable and theinformation communications industry has entered an age of
IoT*1. These trends combined have brought a situation thatcan be called a "turning point". As many of the social
infrastructures developed after 1945 have reached an age
for renewal, reconstructing them in ways that serve visions
for the future instead of simply renewing them is in need.

New form for cities and society as a whole is being soughtwith 2020, the year of the Tokyo Olympics and Paralympics,
as a milestone.
I believe the concept of “network society” in which
various entities working in different locations are efficiently
linked would provide an effective solution as we respond tothese social needs. Flexibly connecting finite resources
including human capital would improve productivity.
Engineering, which can be described as “an art of giving
concrete shapes to various ideas”, is the core business of
MIRAIT Group in Japan and overseas. It is our mission toserve building a society that fully utilizes information andcommunications technology (ICT) and realizing potentials of
network society. We strive to fulfill this mission every day,while recognizing the issue of high energy consumption by
information and communication infrastructure which
network needs and proposing solutions.

In our Group's base domain of information andcommunication infrastructure (construction, maintenance,and operation of fixed and mobile communications facilities
and CATV facilities in Japan), we work to improve
productivity via multifaceted approaches while responding
to social needs.
One of the core initiatives of increasing productivity is
continuous KAIZEN activities. An internal system, KAIZEN
Fellow, has been firmly established and we are promoting
proposals for improvement from employees working
on-site, led by those with appropriate qualifications. Nearly
17,000 proposals were submitted in fiscal 2017, with boththe number and quality of proposals rising. Outstanding
proposals are shared among the entire Group, fosteringorganizational learning. This initiative may seem subtle but
will substantially impact profitability. I am keen to embed a
responsible corporate culture where on-site employees takea lead in solving on-site issues. We are also integrating
offices to improve inefficiency caused by dispersion of sites.
We plan to merge operational sites of our business for NTT
from approximately 70 to 50 throughout Japan by the final
year of the Medium-term Management Plan (fiscal 2020).
Furthermore, we will make efforts to keep a consistentflow of construction works throughout a year with thecooperation of our customers, while reducing costs chiefly
through streamlining of operations. The MIRAIT Group also
works to enhance our construction capabilities (including
the group companies and affiliated companies), expand ourcustomer base, improve our profit structure, and reduce
overheads by reforming and systematizing operational
processes.

Mobilizing human capital and evolvingorganizational capabilities
Businesses of MIRAIT Group are underpinned by ourassociates with wide range of specialized expertise andexperience. As such, strengthening the human capital isone of its key measures in the Medium-term Management
Plan. Our employees currently have a total of approximately
11,000 qualifications related to construction or software
and we seek to further increase this number so we canagilely respond to new technological needs. We will
designate priority qualifications and continue to provide
those expecting an exam with opportunities to havehands-on experiences.
We are also working to strengthen basic abilities of ourengineers. We are offering training and promoting learningon the job for in-depth understanding of customer needs aswell as for proposals and construction and maintenancepractices that meet customer expectations.
In addition, we are turning our organization into one
where knowledge and perspectives of diverse humanresources can be put to good use. Diversity in an
organization can be a great asset in a rapidly changing
environment. From this viewpoint, we have also beenworking to help female employees take on more activeroles, with our two core companies, MIRAIT Corporationand MIRAIT Technologies Corporation, awarded “Eruboshi”
certification in fiscal 2017. We also tackle continuous
improvement of occupational safety and health, combinedwith work-style reforms, to enable each employee to workin comfort and exert their full potential.
There are opportunities in development of human capitaland organizational capabilities which are key aspects in thebusiness of MIRAIT Group. Our group-wide initiatives forthis purpose include creating an environment for all humanresources to exert their full potential, assigning employees
to locations that are convenient to work, integrating*1 IoT (Internet of Things) refers to innovations in connectivity of various devices and products via the internet.

05

Corporate Report 2018

Corporate Report 201806

President’s Message

medium to long term perspective by the next spring.

Third Medium-term Management Plan (FY2017 to FY2020)

Expansion of core business corresponding to changes in social structure and communication environment

Shareholder Returns
Basic Policy

The challenge of business model innovation in response to diversification of customer needs
Promoting business administration while securing profits and aiming at the enhancement of thecorporate value and sustained growth as a comprehensive engineering & services firm

Expanding business
operations/Businessmodel innovation- Aggressive development of frontier domains in environment/energy, IoT, and others- Expanding available price and quality variations corresponding to customer needs- Expanding business fields by making full use of a variety of technology capabilities,of our customer base, and of a nationwide operation structure- Increasing sales capabilities by promoting partnership strategies

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

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

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

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

In determining shareholder returns, it is our policy to pay
dividends consistently, to sustain the total shareholder
return at more than 30%, and to make judgments taking
comprehensive factors into consideration including theCompany’s business results and cash position. In fiscal
2017, the year-end dividend increased by 5 yen, for a totalof 35 yen in annual dividend per share (interim: 15 yen,
year-end: 20 yen). In fiscal 2018, we expect annual dividend
to be 40 yen per share (interim: 20 yen, year-end: 20 yen).

Serving the future as "Your Company"
Key Measures

We believe that responding to societal needs to be acompany that serves the future would create next works
and open new paths for us. We will contribute to United
Nations Sustainable Development Goals (SDGs*2), a set ofinternational targets for realizing a sustainable world,
through all our business activities. We will also work to
identify risks and opportunities for our business from awider perspective and to effectively respond to them,strengthening our ESG.

We align our future to that of the society as it keeps
changing in search of a vision. We engage in works thatneed to be done for the society and works that we want totackle, one at a time with sure quality, to accumulate trustfrom our customers and all other stakeholders involved.
Each of our associates paves a path for new work and thatwork in turn fosters his or her growth. This process
nurtures human capital, earns rewards for the contribution,and leads to next steps. We will utilize individual
capabilities with organizational strength through supporting
efforts of the associates and with flexible group structurethat allow group companies to operate actively. Engineering
can be characterized as “making things with customers”.
This cycle cultivates sustainability as a company. It applies
particularly well to us as we create works from scratch withour customers in new domains. Being endowed with
opportunities to serve society in such ways convinces methat we are “a company sustained by society”.
I often express this thought by using the term "YourCompany". It is our hope that every reader of this report will
come to see MIRAIT Group “as a company managed for us”.
We will move forward, one step at a time, to always remain
an enterprise that readily changes to meet social needs.
*2 SDGs (Sustainable Development Goals) are the blueprint to achieve a better and more sustainable future
for all adopted in United Nations General Assembly in September 2015.

Expansion of Business Domains Utilizing Technologies

operational sites, and reforming business structures (suchas reducing tiers in businesses involving partner companies).

Fiscal 2017 results and Fiscal 2017 results
and future management integration
The net sales in fiscal 2017 increased by 29.7 billion yen
from the previous year to 312.9 billion yen. Net sales
increased in all businesses, especially in the ICT Solutions
business (18.7 billion yen increase) where there was a large
amount of temporary demand for work to resolve 700MHzTV reception interference along with a steady demand for
PBX/LAN cabling work and in the Multi-carrier business (7.2billion yen increase) which also had increase in works foradvancements in 4G and for 700MHz/3.5GHz. Orders
received increased by 3.0 billion yen from previous year to326.3 billion yen, marking a record high of 128.2 billion yen,
an increase of 13.4 billion yen, in the construction accountcarried forward.
Operating income also increased greatly from previous
year by increase of 6.7 billion yen to 16.7 billion yen. As aresult of increase in net sales, improvement of gross profit
margin in each business, and decrease in SG&A, operating
income ratio increased by 1.8 points from the previous year
to 5.3%. Net income increased by 5.1 billion yen to 11.5

07

Corporate Report 2018billion yen and return on equity (ROE) came to 8.8%.
MIRAIT Group has been expanding and strengthening
business domains with the aim of becoming acomprehensive engineering & services firm. We havewelcomed TTK Co., Ltd. (Sendai City) in October 2018 and
SOLCOM Co., Ltd. (Hiroshima City) and Shikokutsuken Co.,
Ltd. (Imabari City) in January 2019. These three companies
have built long-term close relationship with the customers
in their respective areas and have established theirpresence. Through coordinating with these threecompanies, the MIRAIT Group, which engages in businessacross Japan with a focus on Tokyo and Osaka, will greatly
increase its group strength in the Tohoku, Chugoku, andShikoku areas.
Under these circumstances, we expect consolidated net
sales of 365.0 billion yen (324.0 billion yen for current
Group) and operating income of 18.5 billion yen (16.5 billion
yen for current Group) in fiscal 2018.
We plan to assess synergy effects that will be created byintegrating management and layout detailed steps toward
the integration while enhancing business development
capabilities and increasing productivity. We will also be
formulating a new plan for fiscal 2019 and beyond that willfurther develop the MIRAIT Group as an corporate groupthat continue to grow sustainably with the society from

Resources (Technologies)

Current Business Usage(As of March 31, 2018)

NTT

Areas to Expand Into
Engineering area

Expanded areas

Qualified personnel (total qualifications)
Construction
SoftwareTotal

4,400 (7,600 qualifications)
1,000 (3,400 qualifications)5,400 (11,000 qualifications)

Recent areas engaged in

Telecommunications/civil engineering
Power /switching

Elimination of poles
Civil engineering

Multicarrier<Details>
Civil engineering/architecture

Telecommunications, civilengineering and architecture
Installation technicians (A1/DD general)
Construction managing engineers
Architect

Power
315
210
15

Wireless(structural analysis and sensors)

Civil engineering/construction

Smart Cities

Wireless

EV chargers
Civil engineering/architecture

Next-gen Mobility(ITS/smart cars)

Power
Power
Wireless
Wireless

Transmission/switching

Wi-Fi creation

LAN/WAN
Software

Electrical, power and switching
Licensed electrical engineers
Electrical construction managing engineersType I electrical workers

Further expansion for the
futureAging infrastructure

60
270
250

ICT Solutions

Wireless

Wi-Fi solutions

LAN/WAN

LAN/WAN

Wireless

Wireless

Servers

700MHz reception measures
LAN/WAN
Wireless/broadcasting

Wireless and broadcasting

Servers

Technical radio operators for on-the-ground services 80
Special radio operators for on-the-ground services 830
CATV engineers
15

Software

Cisco-certified CCIE
Information technology engineers

55
785

Cloud/DC

Environmental andSocial Innovation

Power/switching

Electricity

Servers

ICT-related technologies

Sensor networks

IoT Big data

LAN/WAN

Environment/Energy(BEMS, MEMS, HMS and batteries, etc.)

Broadcasting

Solar Panels
Electricity

Telecommunications
LAN/WAN

Wireless

Electricity
Servers

Corporate Report 201808

CSR of the MIRAIT GroupCSR of the MIRAIT Group is underpinned by the “MIRAIT Way” that is to bring
together all the members of the MIRAIT Group as one. With “Building and
Maintaining a Bridge to the Future.” as a key message, the MIRAIT Grouppushes forward medium- to long-term efforts.

The MIRAIT Way

Basic approaches to CSR

We have established the MIRAIT Way for all members of
the MIRAIT Group to be brought together as one. Eachindividual member is urged to be aware and to put thisapproach into practice. The MIRAIT Way consists of: theBasic Management Philosophy which lays out our raisond’etre and values; the Code of Conduct that concisely
outlines proper daily conducts; and the Charter ofCorporate Ethics giving the basic policy and concrete
guidance regarding business ethics for all officers andemployees.
CSR activities of the MIRAIT Group turn the MIRAIT
Way into concrete actions.

The MIRAIT Group has three provisions that set out its basic
approaches to CSR in order to promote coherent CSR
activities.

indicators for each of these priority themes.
Such activities are discussed and decided on in meetings
chaired by the President, with CSR Office of the MIRAIT
Holdings Corporation as a secretariat.
As a comprehensive engineering and services company,
we intend to contribute to the realization of a sustainable
society as a member of that society by leveraging ourstrengths while working to solve various social issues.

- Basic approaches to CSR- CSR priority themes and issues “Building and Maintaining a Bridge to the Future”

1

We will win long-term trust from stakeholders by continuallyengaging in business activities that respond to social demands
and expectations.

2

We will become a firm able to cope with change byincorporating responsiveness to social and environmental
issues into the core business.
We will develop a respected “brand” by contributing to the

3 making of a sustainable society as a company.

●

Very significant
Significant

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

●

Extremely significant

BasicManagement
Philosophy

We reviewed our CSR priority themes and issues frommedium-term perspectives while formulating the thirdMIRAIT Group Medium-term Management Plan (fiscal 2017
to 2020). As a result of the process of assessing ourmaterial issues, we have set “Building and Maintaining a
Bridge to the Future” as our motto and decided to promote
our activities for the three priority themes with high levelsof both social interest and significance for the MIRAITGroup. We are in the process of examining concrete

Importance for Building a Sustainable Society

Architectureof theMIRAIT Way

CSR priority themes and issues

Priority Themes

Priority Issues

Building and Maintaining
a Comfortable Society- Business Operations -• Construction/maintenance/reform of social infrastructure• Smart life evolution• Disaster resistant town planning

Building and Maintaining Safe,
Reliable Technical Capabilities- Safety, Quality and Human Resources -• Reinforcing technical development capabilities
and engineering strength / employee training• Continuous improvement of quality and safety• Diversity promotion• Work-style reforms = work-life balance

Building and Maintaining theTrust of Society
Environmental Protection,
Local Communities, and Governance• Corporate governance• Environmental efforts in business operations• Issues of labor, safety, environment and human rights
in the supply chain• Revitalization of local communities

●

●

●

●

●

●

●

●

●

●

●

Significant

Extremely significant

Very significant

Importance for Business Continuity

Code of Conduct

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

The Corporate Ethics Charter of the MIRAIT Group

Charter ofCorporate Ethics

Corporate Ethics, Social Norms, CSR

09

Corporate Report 2018

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

Operation of Integrated Management Systems
MIRAIT Group builds and operates management systems
that further emphasize each of four regions – operator
safety, work quality, environmental conservation andinformational security – as a company which supports
communications infrastructure. We also began operationof an Integrated Management System (MS) in 2012 tointegrate and manage these four regions.
As the foundation of our integrated management
system, the Management System Policy calls forawareness of CSR by every individual involved in MIRAITGroup businesses and requires mutual collaboration
among companies and departments in the Group for
PDCA management.

Management System Policy

To achieve business operation policies and targets, an effective and efficient
integrated management system has been formulated, and we will strive tooperate, maintain and improve that system.

●

All individuals involved in MIRAIT Group operations shall both
be aware of the firm’s social responsibilities and strive toimprove manners, morals, and compliance.

●

All companies and departments of the MIRAIT Group shall, in
mutual cooperation, promote effective management based on
the Plan-Do-Check-Act (PDCA) cycle.

●

All individuals involved in MIRAIT Group operations shallparticipate in appropriate education and training regarding thissystem to promote enhanced managerial strength.

●

The effectiveness of this management system shall be subject
to regular verification and continuous improvement with thisbasic policy in mind.

Corporate Report 201810

Building and Maintaining a Comfortable Society

Advancing Telecommunications Infrastructure
Telecommunications infrastructure is pursuing even greater reliability and superior functionality as
an essential core technology for the evolution of smart living.
The MIRAIT Group supports the advancement of telecommunications environments as social
infrastructure while anticipating tomorrow’s needs as various items of daily life rely on the network
connections and networks themselves that support all facets of business and lifestyles.

Shifting to the Next Stage of Network Environments
Modern telecommunications infrastructure
integrates the General Purpose
Technology (GPT) that supports
sustainable growth of the overall economy
and plays a role as important as theinternal combustion engine and electricity
in the second industrial revolution. In
particular, mobile communication systems
advance every ten years. Today, the world
expects a shift from the fourth generation(LTE-Advanced), which is the current
mainstream mobile network, to the fifth
generation by 2020.
The MIRAIT Group understands theevolution of these technologies whenbuilding telecommunications infrastructurethat offers both high performance and highreliability. In Japan, carrier aggregation*1,
MIMO*2 and other techniques arefurthering the advancement of mobile
communication systems and the
expansion of the frequency band. We also
took on improvement works for deadbands in such locations as railways,
buildings and sports stadiums. We
conducted construction for standard
households in East Japan as a reception
measure for terrestrial digital television
through a mobile communication network
which uses the 700 MHz band (approx.
450,000 households between March 2014
to 2018). In addition, we are participating
as an open partner in a 5G trail for
implementation after 2020. Overseas, weare currently building the backbone lines
for mobile communications in Myanmar.
We have striven even in preparing Wi-Fi
environments greatly desired by society
with focus on subways and convenience
stores as well as education and otherpublic facilities. Public spaces andespecially athletic venues demand the
expansion of Wi-Fi environments for the
Tokyo Olympics and Paralympics. Our
Group provides Stadium Wi-Fi as a solution
to responds to these needs. Installations

that shrink the area covered by eachindividual wireless access point andshorten the interval between these accesspoints realize a pleasant Internet
experience even in places where a large
number of users are accessing thesepoints at the same time. These
installations have been adopted by various
large-scale baseball and other sporting
arenas in a variety of places.
Some of these cases even support
service operations to facilitate theConstruction of Wireless Base Stations

Changes in Mobile Communication Systems(bps)

5th Generation
High-definition
(5G)
Video
4th Generation(LTE-A, etc.)
Video

10G
1G

Construction of Dead Band Improvements
Between Subway Stations

3.9 Generation(LTE)
Static Images

100M
PacketCommunication

10M
1M

Audio

100k

1st Generation(Analog)

3rd Generation

2nd Generation(Digital)

provision of content such as live replay
footage, video of the emotions andmovements of the athletes which cannot
be seen from the stands, and data about
sports achievements in-real time while
spectators watch the action unfold rightbefore their eyes.

Broadening the Potential of Networks via IoT Technology
The wave of Internet of Things (IoT) in all
things connecting to the Internet aroundthe world is increasing its momentum
every year. The number of things (IoT
devices) connected to the Internet thatwas 15.7 billion devices in 2015 isforecast to jump to roughly 30 million
devices by 2020, and it is expected to
become the catalyst of innovation
toward solutions to a wide range ofsocial issues.
Influenced by the growing need for
IoT use, the needs for low power
consumption communication technology
are increasing to realize efficiency andlower costs for data communication
between a massive number of devices
while covering a wide area. The MIRAITGroup conducts proof-of-concept testingof solutions to understand targets suchas the usage status of equipment anddevices, the progression of aging, andthe position of moving bodies with

1990

2010

Overview
Remote monitoring and metering of the energy use for a wide area of households

Smart water metering

Remote monitoring and metering of the water use of lifestyles and industry

Monitoring of parking lots

Remote monitoring of available spaces in parking lots

Monitoring deterioration of solar panels

Remote monitoring of aging of solar panels that have been installed

Monitoring of railway facilities

Acceleration and labor saving in the monitoring and inspection of the bearings
for railway viaducts

Monitoring of moving bodies

Understanding of the position and transient speed of multiple people at eventsor during a disaster

Corporate Report 2018

Automating Meter Reading via
Smart Water Metering and LPWA
Water utility businesses of local
municipalities face further deterioration ofequipment and the aging of staff.
Municipalities are pursuing efficient
operations and the succession oftechnology while sustaining a stable watersupply. As one way to solve this problem,
the MIRAIT Technologies Corporation has
been conducting field studies toward thepractical application of smart water
metering and automated metering thatuses LPWA (common households first
before industrial applications) with thecooperation of NTT West and the Kobe City
Waterworks Bureau since 2015. We
provide experimental test stations as well
as take charge of the construction,
operation and maintenance of wirelessdevices while keeping in mind support ofthe entire administrative sector in an effort
to solidify technical expertise.

Smart Industrial Water Metering2020 (Year)

Source: Created internally based on information published by the Ministry of Internal Affairs and Communications

11*3 Low Power, Wide Area (LPWA): Technology to realize
low power, long distance communication.

Smart energy systems

Evolves Each Decade

2000

emphasis on LPWA*3 to validate theusefulness.
As drones quickly becoming
mainstream, the use of these aircrafts as
IoT devices equipped with sensors canbe adopted in a vast range ofapplications. The MIRAIT Technologies
Corporation considers drones a moving
sensor and provides solutions in fields
from construction and measurement toagriculture, equipment inspections,disaster recovery and even tourism.
Especially in construction andmeasurement fields, the MIRAITTechnologies Corporation is supporting
every aspect of progress management
system operation for civil engineering
construction sites that utilize drones
through a partnership with Komatsu Ltd.,
which is a major construction and mining
equipment company.

Solution

10k

1980

*1 Carrier aggregation: Technology to combine and handle
singles of multiple frequency bands.
*2 MIMO: Multiple-Input and Multiple-Output technology
to install multiple transmission and receiving antennas
to segment and send data simultaneously.

Baseball Stadium Equipped with Stadium Wi-Fi

Corporate Report 201812

Building and Maintaining a Comfortable Society

P R O J E C T

Reinforcing Telecommunications
Infrastructure Against Disasters

R E P O R T

The telecommunications infrastructure is like a nervous system of modern society. In theevent of a prolonged outage due to an accident or disaster, the impact is tremendous
whether severely limiting or even halting the workings of society.
The MIRAIT Group pushes forward preparations for strong infrastructure against natural
disasters in addition to working to ensure readiness even in worst case scenarios.

Building Telecommunications Infrastructure Able to Endure Natural Disasters
Japan is a country with many natural
disasters. A telecommunications network
functioning normally is essential for the
daily life of citizens and industrial
economic activities. This is why nations,municipalities and relevant businessproprietors always work painstakingly to
put in place measures against disasters.
The MIRAIT Group has also been
consistently striving to build and operate
telecommunications infrastructure able tostand up against floods, earthquakes andother natural disasters from thestandpoint of an enterprise involved inengineering.
Undergrounding of utilities in major
cities throughout Japan can be raised as
one new initiative in recent years. Burying
electrical cables prevents utility poles fromtoppling in earthquakes or typhoons andcan reinforce urban disaster preventionfunctions. The Ministry of Land,
Infrastructure, Transport and Tourism isunderway undergrounding utilities across1,400 km in districts with a high necessity
in a three-year project that began in fiscal
2018. Tokyo is rapidly undergrounding allof its utilities in the center and core areasof the metropolis with a target of 2020,
and the area which should undergroundthese utilities over the next ten years also
continues to expand.
MIRAIT Group has worked on manyelectric cable multipurpose undergroundprojects, mostly in cities to eliminate
utility poles. We lay the cables
underground by digging routes as ducts
to accommodate electrical cables while

using actuation of water, sewage, andgas lines and gaining the understanding of
everyone in the area. The construction in
Ponto-cho, Kyoto that was scheduled forcompletion in fiscal 2018 utilized compact
cranes and manpower with work
conducted primary at night because of
the narrow sidewalks and heavy touristfoot traffic of the sightseeing area.

Securing Reception of 700 MHz Band Televisions

Construction Work to Lay Underground Cables(Electric Cable Multipurpose Underground Duct)

Minimizing the Impact of Disasters and Accidents
When a disaster or accident strikes, the
MIRAIT Group undertakes the task ofsafeguarding the communications network
environment for rapid recovery.
We conduct disaster prevention trainingthat cooperates with telecommunication
carriers as a vital initiative to prepare for
emergencies. In March 2018, the Chiba
Branch Office of the MIRAIT Corporation
participated in the NTT Chiba Branch
Comprehensive Group Disaster
Prevention Training held together with ourGroup company Todentsu Access on the
NTT Ichihara Building premises. The
training assumed a large-scale disaster,such as an earthquake that strikes, to train
the proper and rapid establishment ofcommunications and emergency repair
operations in disaster-afflicted areas. Nineorganizations of the NTT Group, including
their telecommunications and13

Corporate Report 2018

construction companies, participated. The
MIRAIT Chiba Group took part incommunications cable recovery drills,
which worked to repair fallen utility poles
and re-establish the connection of cut
communication cables.
On the day of the disaster prevention
training held September 1, 2017, training
for Business Continuity Plans (BCP) was
held at the MIRAIT Corporation for the
purpose of rapidly launching an emergency
response headquarters when a disasterstrikes and confirming informational links
from informational gather to theinformational reports provided to theheadquarters. The drill started by assuming
an earthquake with a magnitude of 7.3(upper 6) struck with an epicenter in thenorth of Tokyo Bay at 1:00 p.m., causing a
power outage at the head office in Toyosu.
The disaster report headquarters that was

BCP Training at MIRAIT Corporation

set up in the seventh floor conference
room of the head office building verified
the situation, including damage ofstockpiles to use at each site in an
emergency. We also establishedcollaboration between each branch andsite. This included the West Japan Branch
conducting the initial safety confirmation
instead of the head office where thepower was out. We evaluate and findsolutions internally to the challenges
identified in the training, and then revise
the BCP manuals for the future and reflect
those revisions in subsequent drills.

Ministry of Internal Affairs and Communications isreallocating frequencies to the 700 MHz band in response
to circumstances such as the growing communication
traffic due to the rapid increase of smartphone users andtotal migration to terrestrial digital television broadcasts.
These new frequencies were allocated to mobile carriers
and the transition of the frequencies of existing systems
that use this frequency band is underway.
The 700 MHz band is in the proximity of the frequency
band used for terrestrial digital television. This results inthe potential for interference, such as distorted television
images, in buildings and private houses using old types of
television boosters (terrestrial analog televisions) due tothe amplification of frequencies for mobile phones.
Mobile phone companies founded the Association of
700MHz Frequency Promotion to address the signal
interference to push forward measures for television
receivers in private homes and buildings near 700 MHz
band mobile phone base stations. The 700MHz Frequency
Promotion Division in the Mobile Communications
Business Headquarters of the MIRAIT
Corporation is in charge of theconstruction for these measures.
This division handles the on-site
surveys of housing and buildings near
mobile telephone base stations
throughout Japan, negotiates

construction, and installs and replaces equipment. MIRAIT
is in charge of Hokkaido, Tohoku, Hokuriku, and the Tokai
region.
This construction not only includes public facilities but
also the homes of local residents. Therefore, schedulingwork with those residents before construction begins andensuring each person understands the necessity of theconstruction for these measures is vital. The project
engages in direct communication to avoid excess attention
and makes request to conduct work through mediums suchas flyers and resident briefings in order to prevent any fraud
from occurring in the construction. We work to ensure time
between jobs to schedule construction with residence andgain understanding of the necessity of construction forthese measures. We are always careful to be polite in thehope of smooth communication with all of the residents.
While ensuring understanding of all of the residence inthe neighborhoods in this way, six worksite supervisors
have worked closely with on-site staff to complete many
construction projects in a system that consistently operates
100 to 150 crews. We have conducted
construction on approximately 450,000
sites between April 2014 and the end of
March 2018. In the future, I hope wewill continue to aim to be a construction
company close to the region whichearns trust from our customers.

Hokkaido Branch, MIRAIT
Corporation
Comprehensive Engineering
Department

Hiroshi Ohata

Project Outline-Construction nameWorks for 700 MHz Band
Television Reception-Territory
Hokkaido, Tohoku, Hokuriku,
and Tokai-Client (Contracting Party)
Telecom Engineering CO.,LTD.
-Completed Construction
450,000 sites(April 2014 to the end of March 2018)

Corporate Report 201814

Building and Maintaining a Comfortable Society

Helping Resolve Societal Challenges

Supporting the Revitalization of Communities

The world is already on its way toward a decarbonized society to minimize the effects of climatechange. To realize a common worldwide vision, we must build next-generation energy
infrastructure that encourages the popularization and use of renewable energy and electric vehicles.
The MIRAIT Group has given specific shape to next-generation energy infrastructure and plays arole in its operation as a comprehensive engineering and services company.

ICT can also play a part in revitalizing communities suffering from adeclining population. The MIRAIT Group not only builds infrastructure for
ICT to be used in rural areas but also develops and provides solutions that
help attractiveness of the communities to be communicated and enjoyedmore fully.

Fully Supporting All Solar Power Generation Systems

Supporting Local Tourism

The Paris Agreement adopted at the 21st
United Nations Climate Change
Conference (COP21) in December 2015
aims to balance anthropogenic
greenhouse gas emissions andabsorption in the second half of thiscentury to limit the average rise intemperatures worldwide to well below
two degrees Celsius. With this objectivein the backdrop, many initiatives toincrease the ratio of renewable energy
and decrease the prevalence of fossil
files are being driven forward both inJapan and overseas along withwide-ranging efforts to save energy. The
MIRAIT Group strives to build andoperate the next-generation energy
infrastructure that supports this new mix

of energy.
We are a full service provider of solar
power energy generation systems
undertaking proposals for installation,
construction and maintenance of a wide
range of facilities from household energy
storage systems to mega-solar power
plants. MIRAIT Technologies Corporation
conducts operations and maintenance(O&M) services at 12 solar power
generation plants in Japan consisting
mainly of mega solar plants*1 which are
extra high-voltage systems, and inspects
high-voltage power generation systems
at approximately 70 locations.
Furthermore, we began providing
O&M services for low-pressure solar
power generation systems*2 due toamendments to the Feed-In-Tariff (FIT)
law enacted in April 2017 which require
the maintenance of low-pressure power
generation systems with a power output
of 10kW to 50kW or less. We haveappointed chief engineers to provide coreservices from remote monitoring toon-site dispatching for checks andperiodic inspections as well as
emergency response maintenance.
These engineers also remove weeds,
clean panels and undertake other tasks
necessary to maximize the power
generation efficiency.
*1 Mega-solar power plant: Power plant that generates a
power output of 1 MW or more
*2 Low-pressure solar power generation system: Powergeneration systems with a voltage of 600 V or less on
power utility lines and a power output of 50 kW or less

Building Recharging Infrastructure Indispensable for popularizing Electric Vehicles
The Japanese government is aiming for thesales of new vehicles to be made up of
50% to 70% of next-generation vehicles*3by 2030 to strengthen the competitivenessof the automotive industry and reduce CO2
emissions in the transportation field. Morespecifically, the targets aim to achieve amaximum of one-million registered vehicles
which are either electric vehicles (EV) or
plug-in hybrid vehicles by 2020.
One element required to popularize EV
is increasing infrastructure of charging
stations. Japan currently has over 7,000
charging stations. This includes the roughly
400 charging stations installed throughbusiness subsidies for service areas (SA)along the highway and parking areas (PA),which must be transitioned to charging
facilities to enable long-distance travel. The
initial charging equipment that was
installed (around 2010) is approaching atime that requires maintenance of thecorrosion and deterioration cause by rust.
However, the replacement of the main
charging unit is costly. Even if only theexterior is repaired, work areas have toensure safety and speed in places
generally filled with vehicles and visitors.
To resolve these issues, the MIRAIT
Corporation has proposed a simple
technique for repairs through wrapping
sheets (refinement work) to the Japan
Charge Network, which is involved in the
installation, operation and maintenance of
rapid charging stations throughout Japan.
In fiscal 2016, we repaired one existing
charging station in a rest area as a trial foran expressway. As a result of proving theeffectiveness, we were contracted to
repair an additional ten sites in fiscal
2017, which was completed in March2018. In addition to these repairs, we arealso accelerating preparations for anenvironment with EV charging stations inJapan that includes further installation of
charging equipment at luxury resorts andother facilities in many areas of Japan.
*3 Hybrid vehicles, electric vehicles, plug-in hybrid
vehicles, fuel-cell vehicles, green diesel vehicles, CNG
vehicles, etc.

Rural areas face the common challenge
of a shrinking economy as the population
migrates to urban areas. An approach torevitalize communities concerned about apopulation decline is to increase tourists
and other visitors to the region. One
promising measure that has come intoview is the active use of ICT. In fact, data
published from surveys conducted by the
Ministry of Internal Affairs andCommunications show an increase intourists from abroad visiting local
municipalities that are engaged in
inbound tourist promotion campaigns
that use ICT (installation of wirelessLANs, multilingual municipal websites,
informational dissemination via SNS,etc.).
The MIRAIT Group delivers solutions
that satisfy specific community needs inaddition to supporting the use of ICT ineach region by building
telecommunication infrastructure.
The “PONTANA” digital information
stand is a system to distribute digital
pamphlets. Users can download
informational content that they areinterested in from a bookshelf-stylescreen to always carry with them. The
2016 Ise-Shima Summit generated
multilingual appeal for Mie Prefecture by
installing an international media center(IMC) annex of the Mie informationbuilding. Recently, PONTANA has also
been providing event exclusive media,
such as images and wallpapers at theBook House Cafe’s Children's Book
Discovery project (Jimbocho, Tokyo) andthe SNOWMIKU 2018 (Sapporo City,
Hokkaido) This digital information standalso provides sightseeing information to
help tourists walk the town at theIndustrial Tourism Plaza Sumidamachi
Toko inside of Tokyo Solamachi.
In addition, we are working to develop
applications to help people enjoy the
tourist spots. Active Communication
Technology & Information System(ACTIS), a MIRAIT Group company, took
part in the information system run by the
Kushiro City Zoo (Kushiro, Hokkaido).
ACTIS developed the Kushiro Zoo Navi
navigation software together with theKushiro Industrial Technology Center andthe National Institute of Technology,
Kushiro College. Users can tap on icons
such as animal exhibits or restrooms
displayed in Google Maps to receive
guidance with a route from their currently
location. This application can also display
an illustrated encyclopedia of animals
that currently provides information in
English and Japanese. We plan to update
future versions with multilingual support
as well as develop a guidance systemthat uses the Pepper humanoid robot.

Relationship between Municipal Initiatives and the Number of Tourists Visiting from Abroad
Municipalities after
initiatives (n=404)

Repair of an rapid EV charging station with visible
age degradation and rust using a lapping sheet

20.5

Municipalities before
initiatives (n=169)

3.0

Municipalities yet to start
initiatives (n=518)

2.3

0

10.4

7.1

2.5

5

10

15

20

25

30

35 (%)■Increase of 15% or more ■Increase of 3% to 15%

Kushiro City Zoo Navigation System:
Kushiro Zoo Navi

Supporting Urban Development
Using ICT
Cases that use ICT as a means for urban
development have also been growing.
Aiming to restore the Tsuchiyu Hot Springin Fukushima prefecture devastated byharmful rumors due to the nuclear accident
after the Great East Japan Earthquake,
Genki Up Tuchiyu Co., Ltd. constructed arenewable energy facility that uses the
local resources of hot springs and rivers(hot spring binary power station and small
hydraulic power plant) and has beenvitalizing the region through the income
earned from power sales. In October 2016,
the MIRAIT Corporation Tohoku Branch
Office and Solution Business Unit were in
charge of the work to install remotemonitoring cameras that use mobile lines at
those power stations. The remotemonitoring cameras grasp the status of thepower stations to compare and confirm
power generation data and help heighten
the efficiency. The MIRAIT Corporation is
supporting the restoration of the Tsuchiyu
Hot Spring via ICT Technology.

Source: Study on the current state of Regional ICT use by the Ministry of Internal Affairs and Communications (2017)15

Corporate Report 2018

Corporate Report 201816

Building and Maintaining a Comfortable Society

P R O J E C T

Accelerating Work-style Reforms throughICT Solutions

R E P O R T

Companies must flexibly respond to employee needs while improving operational
productivity with the government leading work-style reforms as a solution to a reduction in
production capacity due to an aging society with a low birthrate.
The MIRAIT Group provides ICT solutions that become the infrastructure to realize diverse
work styles and secure telecommuting in addition to encouraging work-style reforms.

Supporting Diverse Work Styles Through the Power of ICT
More people participating in theworkforce are needed to adapt to the
population decline. Japan has a highemployment rate of the elderly evenwhen seen on a global scale. However,
the employment rate of women is lower
than that of European countries,
especially for women 30 to 34 years old,
and this gap has not improved.
To increase this employment rate withfocus on a generation raising children, we
need to provide a different kind ofworking environment from those in thepast where continuing to work after
having children has been difficult. ICT will
become an effective measure insupporting diverse work styles.
The MIRAIT Corporation provides
Casting Table 3.0 to contact centers forthe analysis of the work status of theiroperators as a workforce management
system enabling proficient scheduling andefficient operations. The system supports
both greater Customer Satisfaction (CSM)

and diverse work styles by allowing the
preparation of shift schedules tailored toindividual lifestyles according to thedesired work hours and days submitted
by operators.

Employment Rate of Women (15-64 Years Old) and Retirees (65 Years Old or Older)
80
70
60
50
40
30
20
10
0

(%)

74.8

70.8

70.1

68.8

9.1

6.6

6.8

SwedenGermany

Netherlands

66.0

64.1
22.3

10.6

60.9
18.6
2.9

United Kingdom

Japan

AmericaFrance■Women (15 to 64 Years Old) ■Retirees (65 Years Old and Older)*As of 2016; Values do not include 15-year old women for America and the United Kingdom.
Source: “ILOSTAT” published by the International Labour Organization (ILO)

Realizing Telecommuting Through Secure Environments
Telecommuting from mobile work andwork from home programs are gaining
even more attention as a way to support
a balance between work and raisingchildren as well as caring for family while
also acting as a key solution to improving
productivity. These new work styles
enable people to work regardless of timeor place but also come with informational
security concerns. As numerous small- to
medium-size organizations struggle toappoint dedicated system administrators,
partners and other clients require moreadvanced information security measuresand enhanced IT.
MIRAIT X used its wealth ofexperience and expertise in IT support
service operations together with the
integrated private cloud network built on
superior server configuration technologies

17

Corporate Report 2018

Expanding Potentials of Drones through Pilot Training
and Piloting Services

provided by Fieltrust Corporation todevelop the IT Marugoto (wholesome)Cloud service.
In addition to solving challenges that
require expertise from system settings
related to IT, especially computers, failure
recovery and security measures and IT
resource management to national
identification number management, thiscloud service provides total support that
includes operational support for software
such as Microsoft Office andconsultations about concerns related to IT
devices. Users can also use a secure
Windows environment through a remote
desktop from a terminal, such as their
computer, smartphone, or tablet, safely
from anywhere. As a result, this service
can ensure information security andwork-style reforms while reducing costs.

MIRAIT Technologies Corporation is focusing on the great
potential of drones, which have recently grown in
popularity in an effort to create drone-related services.
One of these services is our drone piloting service. This
service operates drones for other companies who are
expanding their drone services. We take advantage of the
MIRAIT Group’s Japan-wide communications construction
network to realize an operation system for drone services
at a nationwide scale.
Another is our drone pilot training service. The use ofdrones is expanding into a wide range of fields fromdisaster relief to deliveries in social contribution activities
while emphasizing civil surveying, aerial photography,
pesticide spraying, equipment inspection and examination
fields as a business. We started the pilot training service
in a business climate that is sure to lack the pilots
necessary to support these fields. MIRAIT Technologies
Corporation has been included as a member of the training
association for unmanned drones on the Ministry of Land
Infrastructure, Transport and Tourism Civil Aviation Bureau
homepage since March 2018.
We opened drone training schools in Kobe, Hyogo andKumagaya, Saitama and conduct training in-line with thecertification course of the Japan UAS Industrial
Development Association (JUIDA). These schools offer

multiple curriculums from elementary courses to advanced
courses to teach the technology and know-how able tohandle various operations in addition to conducting JUIDA
drone pilot certification training.
The drone schools that opened last fall have had 130
students from the general public in addition to training 200
Group employees up until now to help them spread theirwings as future drone pilots. We will grow this successand aim to cultivate 300 drone pilots internally as ourtarget for fiscal 2018.
Our piloting service on the other hand provides various
services and operational support of those services such as
3D Status Survey System for civil engineering worksites,
Crop Growth Survey System for the agricultural field anddrone rentals for industrial machine rental companies. I hope
we can become the proven leading-experts in the drone field.
This has also been called an aerial industrial revolutionin which the greater availability of drones has been
marvelous not only as a hobby but also as efforts frombusiness to disaster relief. MIRAIT Technologies isbroadening the field of view for drones in measurement,
inspection and aerial photography as three core fields inaddition to providing systems for piloting services andpilot training and aims to further social contributions
through the use of drones.

MIRAIT Technologies
Corporation
NTT Business Headquarters
Drone Service Division

Chizuka Sugiyama
Service Overview-Drone Pilot Training Service
Courses: JUIDA certification
course, advanced course,
aerial photography course, andcivil photography surveying
courseSchool locations: Kobe, Hyogo
and Kumagaya, Saitama-Wide Area Drone Piloting Service
Services: Drone piloting,supply of devices,maintenance, etc.
Service area: All of Japan

Corporate Report 201818

Building and Maintaining Safe, Reliable Technical Capabilities for Safety and Security

Pursuing Quality
We endeavor to satisfy customer expectations and trust with high-quality service and solutions by devisingmechanisms, developing people who run them, and creating an environment where people can exert their strength.

Quality 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 (see p.10). The
foundation of our Policy on Quality*1 iscomposed of three pillars — enhancing
rapid response to legal regulations and thequality of products and services,heightening customer satisfaction by
improving the quality of construction(including the realization of efficient
production and services), and reducing
risks to quality. Furthermore, throughinternal regulations, we have clarified
specific processes, procedures, andcriterion. We have also clarified the quality
standards even in our purchasing whichshould be followed not only internally but
also by our partner companies.
The MIRAIT Corporation regularly
confirms and verifies the quality in each

Collaborating with Business Partners
and every process. We are also pursuingmore accurate and efficient verification
processes by using technology such as
mobile terminals.
Annually, each company sets targets(for the number of facility accidents, thenumber of inspection issues indicated,score for customer satisfaction, etc.)
depending on the type of operation. The
level of achievement is then reviewed for
efforts continuing into subsequent years.
*1 The full text for the Policy on Quality is available at our
website.

Sharing an Awareness Toward Safety
Training for a Renewed AwarenessToward Safety
A training course for a renewed awarenesstoward safety is offered to the employees
at construction sites who are charged withsafety leadership and safety management(an appointed safety supervisor, site agent,or other). The training helps to enhancesafety management capabilities throughclasses and practice in safety patrol points,
examination of example accidents andmuch more. 16 people participated inthese classes in 2017.
Authorization of workers for highelevation work safety
So that an engineer is able to work at highelevations safely and securely, a “highelevation security worker authorization"(access system) and "high elevation
security worker authorization" (network
system) has been implemented.
Access system

Network system

individuals

individuals

3,302 302

Number of candidates for authorization of workers
for high elevation work safety (fiscal 2017)

Improving Technical Strength and Workplace Power
The MIRAIT Group implements training
and technical certifications to steadily
improve the technical strengths that
support service quality.
Strengthening Construction
Management Capabilities
To strengthen management by theworksite supervisor * – the core humanresource of business operations –“Worksite Supervisor Training” is given to
newly appointed worksite supervisors anddeputy worksite supervisors.
In recent years, with the increase in thenumber of construction sites and with thediversification and increased complexity of
construction works, worksite supervisors
who are in charge of construction works
are expected to have capabilities of dealing
with a wide range of tasks and situations.
The “Worksite Supervisor Handbook” thatis a culmination of the MIRAIT Group’s
experience and know-how is used during
this training. In addition to learning thebasic elements of construction

19

Corporate Report 2018

management such as preparing a budget
and cost management, through theintroduction of discussion and role-playing,knowledge is gained organically. It is anapproach that enhances problem-solving
capabilities.
Educating Specialized Technicians
Lectures are being held at the Expert
College for the education of specialized
technicians, with various types of training
offered. In 2017, a 9-month Access
Systems Basic Technology course for
newly hired employees and a 19-day
Metallic Cable Connection training course
were offered. The purpose of this training
is to learn basic access systems
technology and skills together with safe
construction abilities. An additional aim isfor the acquisition of various types ofcertification such as information wiring
installation and licensed electrician.
*2 Worksite supervisor is a supervisory position appointed
to consolidate work at each of the MIRAIT Group’s
construction sites.

Building Quality Management
Infrastructure (Australia)
MIRAIT Technologies Australia has been
contracted by a major telecommunications
firm to update 50,000 outdoor systems overthree-years in a project that began in 2017.
We created a database for the construction
knowledge or our 120 contractors that weare working with as partners to standardize
the work processes and ensure quality andefficiency while updating the outdoor
systems located in the four eastern states(New South Wales, Victoria, Queensland,
and Tasmania) vastly larger than Japan.
MIRAIT Technologies Australia developed
its own unique
databases and IT
tools to centralize
remote monitoringof the work to
update thesesystems over sucha broad area.

The MIRAIT Group works closely with its
business partners well aware that this isessential to maintaining service quality.
First, through an evaluation andselection process based on thePurchasing Management Regulations,
we clearly share basic requirements,
such as standards related to product andservice quality as well as supply
capabilities.
To deepen mutual understanding andcommunication, and with the purpose ofcontributing to healthy management,cooperation meetings are held withmembers of approximately 200 affiliatedcompanies. The MIRAIT Group sharesinformation on the cooperation meetingwebsite in addition to holding
headquarters activities and three safety,
technical training and management
information groups.
Additionally, to deepen the interaction

with affiliated companies that haveregional branches, we have divided thecountry into nine areas, holding regularmeetings of the regional cooperation
meeting to exchange information aboutbusiness project development and othertopics. In fiscal 2017, we pushed forward
mutual recognition regarding futurebusiness development among the 497
companies that participated.

Overall Improvement in Operation Quality
The MIRAIT Group believes that the key
to steadily improving service quality is toraise standards of overall operation
quality consistently.
Diligently turning our attention topoints noticed and opinions held byon-site workers (both group employees
and affiliated company workers), we
promote the KAIZEN Suggestion Activity
to improve efficiency and the quality ofduties. Furthermore, we gather teammembers from group companies’
worksites and hold regular MIRAITGroup KAIZEN meetings to introduce
activity results, bringing reciprocal
improvement. In 2017, 15 teams (thesame as the previous fiscal year) gave
presentations sharing the results of theirown unique innovative ideas. Three
years have also passed since the KAIZEN
Fellow efforts which have spread widelyas the KAIZEN Suggestion Activity ineach office. The atmosphere through theorganization has become more positive.

Commemoration Ceremony at the KAIZEN Meeting

Approx.

16,794

KAIZEN suggestions (results of fiscal 2017)*14,727 suggestions in fiscal 2016

Conducting All Construction with Least Burden on Our Customers
We take on all of our construction tailored to the requirements of our customers from telecommunications andelectrical work to civil engineering work. This includes things like each telephone line and the attractions at one of
the main theme parks in Osaka, Japan.
I enjoy that every single job is different and offers its own challenge. Most of this work does not have any clear
specifications. That means I need to approach the tasks in front of myself every day while fully confirming the plan indetail with the people in charge of the affiliated companies. Almost all of the works at theme parks are done while
they are closed at night.
On-site, I am always confronted by new challenges. I focus on how to safely and smoothly complete the tasks
without any rework most of all. That is why I of course make suggestions about the work, conduct on-site
confirmations to ensure no issues related to the construction in addition to adjusting things with the customer andother internal departments. As a worksite supervisor, I am always keeping in mind ways to put least burden on ourcustomers and hope to build a track record that will earn even greater trust.

Yohei Sakae
Engineering Division,West Japan Business Division
MIRAIT Corporation

Corporate Report 201820

Building and Maintaining Safe, Reliable Technical Capabilities for Safety and Security

Work-style Reforms

Diversity

The MIRAIT Group aims to become an attractive and worthwhile enterprise to work where
each and every employee can find their own motivation and reach their full potential. We also
maximize the organizational capabilities of the team while providing an invigorating workplace
for both the body and mind in which everyone can see themselves grow.

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

Advancing Efforts Towards Work-style Reforms

Promoting the Active Participation of Female Employees

The MIRAIT Group annouced theWork-style Reform Declaration by the
President to reform work-styles
throughout the Group to cultivate
sustainable growth as a comprehensive
engineering and services company that
responds to future changes in labor andbusiness environments.
We will push forward effective
work-style reforms through consistentand unified reforms around three axes:(1) realization of diverse and alternative
work styles, (2) optimization of overtime
work and promotion for employees totake leave, and (3) effective
empowerment of diverse humanresources through flexible work styles.

We are devising action plans andanalyzing problems in each company sothat female employees can reach theirfull potential and build their careers invarious arenas. We have set and areworking toward targets, such asincreasing the ratio of women hired as
new graduates as well as in managerial
positions. We are also expanding theoccupational fields for women.
Moreover, we are working to build aworking environment that supports awork-life balance.

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 andPromote HealthOrganization Where Diverse Human
Resources Actively Participate

Initiatives
Realizing Diverse and Alternative Work
StylesThe MIRAIT Group promotes the active
participation of human resources byeffectively responding to the Revised
Labor Contract Act, the Revised
Part-time Employment Act and otherregulatory reforms while revisingnecessary policies. We have alsoestablished a limited area employment
policy to address work conditions withcertain limitations, such as the inability
for non-regular employees to transfer toother sites around the nation, and help
these human resources transition toOvertime Work

(Hour)

regular employment.
Optimizing Overtime Work andPromoting Employees to Take Leave
The MIRAIT Group aims to build aworking environment that promotes
work-life balance through better
employee health by setting no-overtimedays, encouraging employees to leave
work on time, and promoting employees
to take paid leave in conjunction with thespring and summer breaks as well as theend of year holiday seasons.
We are heightening efficiency in ouroperations by promoting KAIZEN

Rate of Paid Leave
Taken by Employees

(%)

55.5

(B) Reforms to Operations andSystems

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

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

Support

52.8

2016

2017

2018 (FY)

2016

2017

Monthly average overtime per employee*Average for the MIRAIT Corporation and MIRAIT Technologies Corporation

21

Corporate Report 20182018 (FY)

Empowering Diverse Human Resources
Through Flexible Work Styles
The MIRAIT Group strives to transformpolicies and rules in a way that facilities
flexible work styles by offering programsfor employees to use such as flextime, amodified shift system andtelecommuting.

(A) Reforms to Corporate
Climate and Awareness

25.7
24.3

activities in each workplace as well as
the use of ICT in addition to reducing
total working hours by recording andunderstanding suitable working hours
through a computer logging system.

Three
Initiatives

Support(C) 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.

Support for Both a Career as well as
Raising Children and Caring for Family
So that employees can continue working
with a sense of security for a long time,parental leave (available until the childreaches three years of age) and reduced
working hours system (available until thechild finishes the third year ofelementary school), plans are available
corresponding to major life events suchas childbirth, infant care or nursing thatare well above levels stipulated by law.
Since the MIRAIT Group inaugurated theplan in October 2012 until March 2018,
the rate of maternity leave taken by
women employees is 100%.
Furthermore, MIRAIT Technologies
Corporation was awarded the “Kurumin”
certification mark for companies thatprovide support to families raisingchildren by the Minister of Health, Laborand Welfare.

Acquisition of “Eruboshi” (Female
Employees Promotion Law) Certification“Eruboshi” is the nickname for the logo
mark of a certification program of the
Minister of Health, Labor, and Welfare inwhich companies formulating andreporting action plans to promote theroles of women in the workplace that are
carried out outstandingly are authorized
to use the mark. MIRAIT Technologies
Corporation has cleared all fiveevaluation items (recruitment,
employment continuity, work methods
including working hours etc., ratio ofmanagerial class employees, and varietyof career courses) reaching certificationlevel, thus receiving the highest of thethree levels of certification.

Support for Senior Personnel
Correspondent to Japan’s progressively
lower birthrate and aging population, tosupport the participation of seniortalented personnel qualified persons in
the high technology necessary forcommunication construction industry,
we have set the retirement age to 62
and have established a re-employment
program to maintain an environment
where those who desire to work cancontinue taking an active role.
Additionally, we hold life plan
seminars for employees over a certain
age and provide support for financial
planning and working methods after
employment extension.

Recognized as a Leading Company with
Actively Participating Women in Osaka
City
The MIRAIT Technologies Corporation
received the highest two star recognition
as an excellent company for its level ofeffort in promoting the active
participation of women by Osaka City inaddition to receiving the Ikumen Award
as a company supporting men to help
raise their children.

Promoting the Active Role of Local
Personnel in Foreign Countries
Centering on Asia and the Pacific Region,
the MIRAIT Group currently maintains
branches in 14 countries and regionswith locally hired personnel working in
the regional offices. Through mutual
support such as dispatch of personnel
required between overseas bases, weseek an overall enhancement of thetechnical skills of local employees for
growth so that each employee candemonstrate his full abilities.
MIRAIT Philippines Inc., conducts
activities to deepen its connection withthe local community and heighten trust,such as hosting a Christmas party withchildren who have disabilities.

Corporate Report 201822

Building and Maintaining Safe, Reliable Technical Capabilities for Safety and Security

Human Resource Development
Supporting growth of each employee from a broad perspective means systematicallyreinforcing our human capital that will support us in the future.

Personnel Training System

Improving Technical Strength

At the MIRAIT Group, we consider
human resource development one of themost vital management priorities. We
have established personnel training
systems made up of “sectorial model
systems” to enhance specialized
professional capabilities by sector and“stratified model systems” with themastery of knowledge required incommon at each professional level (seediagram below). Supporting the progressof each employee, we are driving thereinforcement of our human resource
foundation which, in turn, sustains ourbusiness operation.
Our human resource development
system has been designed as a programin which employees can learn skills andknowledge tailored to the role expectedof them in each level of employment andstage of their career from training
provided upon entering the company toeducation provided for executive
management. We also offer particularly
enhanced education and training systems
so that new employees can actively
participate regardless of whether from ascience or humanities background. We
also provide an interview program toencourage people to actively take on thechallenge of acquiring various
certifications by actualizing goals andcareer advancement through discussions
with supervisors in addition toestablishing a bonus
system according todifficulty that responds
to the will of ouremployees.

Initiating Internship Program
Every August, we hold an internshipprogram for students. The principal
objective is giving professional-life
assistance to the generation that will
shoulder the burden of Japan’s future. In
the short-term internship of about one
week, through work experiences such as
observing telecommunications cable being
connected andvisits toconstruction sites,
we are providing
the students theopportunity to
deepen theiroccupationalawareness andrealize their own
Students Listening Intently
aptitudes.
to an Explanation

We make every effort to improve thetechnical strength of every one of ouremployees to build high-quality andstable communication facilities andsystems in addition to responding more
quickly to the ever-changing
requirements of society in order to bringsatisfaction to customers.

The MIRAIT Group encourages andsupports the acquisition of certifications
in a wide range of fields as proof of thetechnical strength of our employees.
We actively work not only in thecommunications field but also in the
training of drone pilots for the expansionof drone-related businesses in addition to

Technical and Skill Training● Provides broad technical training for
multiple skills
Electrical Workers

Certification Acquisition Support● Sets goals for each person to acquirecertifications every year throughinterviews with a supervisor● Provides incentives when acquiringcertifications from a designatedcompany(person)the electrical and ICT fields. Our drone
education in particular has become atraining association for skill certificationand is included on the Ministry of Land,
Infrastructure, Transport and Tourism
homepage.

Technical Radio Operators
for On-the-ground
Services(person)Drone (JUIDA)(person)

984
875

87

89

91

2016

2017

2018

154

828
2016

2017

2018

2019 (FY)2019 (FY)

2018

2019

(FY)

*Total for the MIRAIT Corporation and MIRAIT Technologies Corporation

Training programs at overseas operations
New employee training

Preparing the Training Environment
At training centers like the Ichikawa
Training Center (Ichikawa City, Chiba
Prefecture) and Kansai Hyper Techno
Port (Kobe, Hyogo Prefecture), various
equipment has been installed forfull-blown technical skill training andtechnological development of ourengineers. From brand new employees
to seasoned veterans, we are sharpening
our technological capabilities and ability

to make proposals to meet ourcustomers’ and society’s demands andto contribute to today’s needs.

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

The MIRAIT Group conducts various
training programs for employees hired attheir overseas branches. At MIRAITTechnologies Myanmar Co. Ltd., not only
locally hired employees but those fromlocal affiliated companies participate.
Striving for technical skill enhancement,
we hold lectures and practicalworkshops in large-scale training

sessions.
MIRAIT Philippines Inc. has createhuman resource development for
employees, such as improving opticaltechniques, following the shift tobroadband by the Philippine government
and the FTTH requirements of major
telecommunication carriers.

Mentoring Program

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

Promotion of
Cross-industrial
Interaction

Experiencing Different Corporate Cultures
and Diverse Work Duties

Self-development

Business Headquarters

Sectorial Model
SystemPromotion of Interactive
Personnel Administration

Branch Offices

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

Idea behind the Mentoring Program

Section Supervisor/Senior

MentorTechnical Training/Guidance

Stratified Model
SystemMentoring Support

Within and Outside
the Group Companies

Gain Multiple Skills

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

Older Adults

Company Support
New Employee (Mentored)

23

Corporate Report 2018

Corporate Report 201824

Building and Maintaining the Trust of Society

Environmental Protection
We are steadily reducing the energy used in our daily business activities aswell as CO2 and waste emissions in addition to further limiting theenvironmental impact from the life cycle of our development properties andthe environmental load of the supply chain.
Photovoltaic Solar Power Generation Facilitiesof the Kobe Technical Center

Environmental Management
Environmental Management System
The MIRAIT Group has acquired EMS(Environmental Management System ISO
14001) certification for our domestic
companies. We are also forming andputting into operation environmental
management systems similar to this atoverseas group companies as well.
At each business location, operational
activities are examined and evaluated fortheir environmental impact. We thendevise measures to address significant
environmental aspects and every year
develop implementation plans,confirming the results and issues forcontinuous improvement.
We conduct regular audits, with ISO

14001 certified offices having internaland outside audits annually.
Furthermore, in the four years from2014 to 2017, there have been no
incidents, accidents, pollution, or
grievances caused by violation ofenvironmental laws or problems (fordomestic Group companies).
*The Policy on the Environment is available on our
website.

Environmental Goals and Achievement Status
Goal:

Fiscal 2017 results

Reducing CO2 emissions by morethan 1% over the previous year

Reduction of 2.5% fromfiscal 2016

<Scope> Three companies: MIRAIT Holdings Corporation,
MIRAIT Corporation, and MIRAIT Technologies Corporation)

Sharing Results from Environmental
Information Systems
To aggregate the actual values of leading
performance indicators for environmental
conservation initiatives (for CO2
emissions, electric energy consumption,
consumption of fuels such as gasoline
and kerosene, volume of waste – paper,household garbage, industrial waste – and“green” procurement amounts), we haveinitiated an environmental system thatcan be used for monitoring and analysis.
Particularly in summer and winter whenelectricity consumption increases, each
workplace sets its own goals and has
campaigns to encourage reduced energy
use.

Mitigating Climate Change
Saving and Creating Energy at
Construction Centers
At construction centers in each location,
we have installed LED lighting, demand
monitoring systems for power
consumption, and are utilizing roof spacefor PV solar power generation to promoteresource conservation.

Saving Energy and Reducing CO2 Emissions Through Building Energy Management
thousand kWh

Annual electrical power output of PV
solar generation systems at 11 offices of
MIRAIT Corporation and MIRAITTechnologies Corporation (fiscal 2017)

Promotion of a Power Consumption
EconomyMost of the energy consumed in offices
is electricity. Unified as the MIRAITGroup, we are promoting reduced power
consumption measures throughrationalization of use and reduction in thenumber of printers and copy machines,
comprehensively setting power-savingson computers, along with proper
temperature control. Additionally, with

25

Improving Fuel-efficiency of Vehicles
We endeavor to raise company-wideawareness and promote reduced energy
use by introducing low-emission,
fuel-efficient vehicles, and byencouraging ecologically friendly driving –eco-drive – which is relatively lessburdensome to the environment andleads to fewer traffic accidents.

Corporate Report 2018

In 2012, a cloud-based building energy management system was installed at the Shinkiba Buildingof the MIRAIT Corporation. This system reduces power consumption by automatically controllingthe indoor temperature at a set point while controlling the CO2 concentration of the indoor space at
an appropriate level. Furthermore, in 2016, we installed a peak cut control system so that when thebuilding’s consumed power exceeded a prescribed threshold, the air conditioning (outdoor
equipment) – which
Peak-Cut Effect at the MIRAIT Shinkiba Building
accounts for a significant
Contracted Electric Power (kW)470
ratio of consumed power –
460
458kW
is turned off. We were
450
thus able to reduce
440
Peak-cut Test Start
430
contracted electricity from420
458kW to 396kW for an
410
approximately 14%
400
396kW
390
reduction.
380
20
16
20 .1
16
20 .2
16
20 .3
16
20 .4
16
20 .5
16
20 .6
16
20 .7
16
20 .8
1
20 6.916
20 .1016
20 .11
16
.1
20 2
17
20 .1
17
20 .2
17
20 .3
17
.4

366

strict enforcement of lights-out policies
and regulation of elevator use, we areencouraging reduced power consumption
in multiple aspects.

Contributing to a Recycling-based Society
Recycling of Construction By-products
We continuously work to minimize thevolume of construction by-products that
occur at each construction site and to
discover ways to recycle by-products that
do occur. As part of that effort, we
switched from wooden drums on whichsteel stranded wire is wound anddisposed of after one use to a reusable

ECO drum – part of a telecommunications
construction industry program – startingin 2008 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

ECO Drum

been used and using a thermal
processing (used as heat) by contracting
a specialized company.
Reducing Paper Use
We are promoting paperless meetingsand standardizing procedures for using
multifunction devices that eliminate
wastefulness.

Comprehensive Environmental Conservation Measures
Green Product Development
Guidelines
The MIRAIT Group has establishedGreen Product Development Guidelines
compiling the points that should beconsidered from the product design anddevelopment stage with the preservationof the global environment in mind.
During development, while bothobserving related laws and ordinances,
we also consider environmental effects
over the life cycle of the construction
method, product, or service.

Environmental Standards for The
Selection and Assessment of Business
Partners
The MIRAIT Corporation considers theapproach to CSR efforts when evaluating
and selecting business partners. We ask
about environmental considerations(promotion systems, chemical substancemanagement, CO2 emission reduction,and industrial waste reduction) to use asa basis for our decision (see p.28).

Green Purchasing
Whenever possible, we purchase officesupplies and paper based on therecommendations of GPN* green
purchasing guidelines. The green
purchasing ratio for MIRAIT Corporationand MIRAIT Technologies Corporation
was 81.8% and 84.0% respectively infiscal 2017.
*For purchasing decisions, the GPN (Green Purchasing
Network) guidelines list products with consideration
given to environmental conservation.

Biodiversity Conservation
Rural Area and Neighborhood(Satoyama) Preservation Activities
Since 2003, we have participated in therural area and neighborhood (Satoyama)preservation activities of the Osaka
Green Trust (Public Interest Incorporated
Foundation) by recruiting volunteers bothin-house and from affiliated companies.
As in the previous year, fiscal 2017, weparticipated in restoring and maintaining
the planted bamboo groves by pruning
and thinning the bamboo grass in the
Kurumatsukuri Forest of Ibaraki City inmetropolitan Osaka. We are taking
initiatives toward environmental
conservation and preservation of
biodiversity for creation of an abundantly
green and pleasant environment.

Work in at the Kurumatsukuri Forest

Contributing to Environmental Protection Through BusinessDirect and Indirect Contributions
We are contributing directly to therealization of energy infrastructure that
pursues a low-carbon society throughthe design, construction, operation andmaintenance of power generation
facilities that use renewable energy withfocus on solar power, installation andmaintenance of LED lighting, installationand maintenance of EV charging stations
as well as the provision of energy
management systems and battery
systems.
We are also taking an active part intrends toward the realization ofhigh-efficiency smart energy systems
and smart cities, such as thedevelopment of a broadband wirelesssensor network system andnext-generation mobility.

Corporate Report 201826

Building and Maintaining the Trust of Society

Occupational Safety and HealthSocial Responsibilities in the Supply Chain

We introduce and continually improve safety measures because safety is themost important fundamental priority when executing operations. The
MIRAIT Group also supports employees in maintaining both physical andmental health.

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

Occupational Safety and Health Management

CSR as a Standard for Evaluating Business Partners

The companies of the MIRAIT Group
operate an occupational safety and healthmanagement system certified under the
OHSAS 18001. We work in concert tocomply with occupational safety andhealth requirements, reduce and eliminate
occupational safety risks through risk
assessment and activities to anticipate
danger, in addition to raising awarenessthrough bilateral enlightenment activities
in accordance with the Policy on
Occupational Safety and Health, whichclearly states safety is the greatest priority
when engaging 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 as supervision check-points.
*The full text for the Policy on Occupational Safety and
Health is available at our website.

Striving Toward the Eradication of
Accidents and Improvement of Safety
Quality
A stance of returning to the basics in ourdaily actions is essential to achieve thegoal of eradicating accidents andimproving safety awareness of ouroperations. We are implementing thatstance.
We are pushing for a deeper
understanding of safety in on-site
workers by preparing and distributing
such materials as operational safety
handbooks, by conducting safety training
and confirmation of implementation, andby providing materials such as videos ofaccident scenes as well as visualpresentations of laws and regulations
covering safe practices. Additionally, toencourage communication about safe
practices among workers, company
executives – from the president on down
– diligently make visits to the workplacein an effort to raise each worker’s
awareness of safety on a daily basis.
MIRAIT Group Safety Conventions
In July every year, in conjunction with“National Safety Week”, Group
companies and affiliated companies hold
MIRAIT Group Safety Conventions in two
locations, east and west, to encouragewaterfront development reconfirming
safety awareness and safety measures.
In fiscal 2017, presentations from theemployee in charge of safety about

Dangerous Experience and Body Sensation Training(Simulating Roofs in Raining Weather Conditions)entrenchment of the Safety Work Cycle
and various other examples of workplacesafety strategies were discussed, and alecture by a third-party instructor was
given.
Danger Simulation Training
Aiming to eradicate falling and slipping
accidents which account for
approximately 40% of all fatal accidents
at construction sites, the MIRAIT Groupholds danger simulation training using
facilities where employees and workers
from affiliated companies can havesimulated accident experiences. The
purpose is to raise safety awarenessthrough experience. Because theparticipant trainee senses a falling
accident bodily, his appreciation of theimportance of basic movements andsafety appliances is much stronger. We
have expanded the number of target
branch offices and the training topics
with more than 450 trainees participatedin fiscal 2017.

The MIRAIT Group determines the ability
for business partners to supply products
and services following our requirements
as part of the integrated management
system (see p.10). We have also
formulated the Procurement Management
Regulations for the purpose of selecting
and evaluating business partners toensure procured products conform to therequirements in these regulations. These

regulations have been drafted toencompass both the companies(suppliers) handling materials,
semiconductors, measurement
instruments and other products as well as
the companies (business partners)
providing services.
The MIRAIT Technologies Corporation
uses these common evaluation items in
the evaluation and selection of business

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 aquality 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

partners (Japan). In addition to direct
items necessary to provide satisfaction tocustomers, we also have incorporated
items to evaluate the approach to CSR
efforts. The approach to CSR iscomprehensively evaluated after asking
each business partner about theirenvironmental considerations (promotion
systems, chemical substancemanagement, CO2 emission reduction,and industrial waste reduction) as well as
their contributions to local communities(social contribution activities and dialogue
with the communities, NPOs and NGOs).
These evaluations are conducted once
annually for companies that we willcontinue to do business with in addition to
occasions when we are considering new
business dealings. We support corrective
actions for any business partner who has
shown a lower level in their evaluation.
The MIRAIT Corporation uses a similarevaluation system to conduct
comprehensive evaluations of otherbusiness relationships.

Area and Questions to Ask Partner Companies about CSR Activities
Area

Question

1. Environmental
considerationsa

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?

27

Ensuring Safety in a
Large-scale Disaster

Support of HealthManagement

In response to social needs, we have
distributed a Pocket Manual for Major
Earthquakes and other Disasters to
employees in case of major
emergencies. It contains a collection of
information regarding principles of action
to be taken and safety confirmation
methods when a disaster occurs. It also
calls for a confirmation of routes home tobe taken on foot and for practice with thesafety confirmation system.

In addition to enforcing regular healthcheck-ups for all employees,
comprehensive medical examinations for
employees over a certain age andspecific health guidance, we intend toencourage health monitoring for our
employees. We also provide recreation
facilities in several locations in Japan asopportunities to refresh, and we always
encourage activities that promote healthsuch as the walk rallies held by the
Health Insurance Association.

Corporate Report 2018

Mental Health
Since December 2015, a stress checksystem has been made mandatory underlaw. This regime aims to be a primary
precaution measure through employee
awareness of stress, workplace reform,
and to stave off psychiatric disorders
through primary prevention. Before thelaw was enacted, the MIRAIT Groupprepared a Mental Follow-up System(with consulting services, etc.) based ongroup analysis after conducting stresscheck. Each department conducted
mental stress training through workplacereform. Efforts are being made toward
prevention of psychiatric disorders.

2. Contributions to
Local Communitiesd

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 defined uniqueguidelines to incorporate considerations
about social challenges and theenvironment into the procurement
practices of the supply chain andpromotes efforts while pursuingcooperation with the suppliers when
expanding businesses into fields related tobuilding social infrastructure, such as ourcore business in telecommunications
infrastructure.
These guidelines are put into operation
with emphasis on six particular regions –quality, delivery, improvement activities,
management stability, environmental
protection, and informational resource
management – even in the region of CSR.

Corporate Report 201828

Building and Maintaining the Trust of Society

Contributions to Local Communities

Corporate Governance and Internal Control

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

Basic Approaches to Corporate GovernanceContributing to Problem-solving in Local Communities and Society as a Whole
Support for the Tohoku Disaster Area
Building on activities from the previous
year, we are participating in thecommunity service activities being
carried out in Iwanuma City, Miyagi
Prefecture by the Miyagi Dengyo
Association (disaster volunteers), planting
trees for tsunami control forest
restoration.
The MIRAIT Group continues toparticipate in the activities begun in 2011,
having thus far installed flower beds near
the temporary housing and removed
debris from farmland.

Harvesting of Abandoned Rice Paddies

Enhancing Shareholder Incentive
Options and Donating to the Special
Olympics Nippon
The MIRAIT Group sponsors substantive
activities of the Special Olympics Nippon.

We have even made the donation to thisorganization a new option that can beselected as an incentive for shareholders.
In this first year of this program, all of ourshareholders raised ¥520,000 as adonation.

positioned as the most important aspect of management. We
aim to improve corporate value and generate sustainable growth
as a comprehensive engineering and services company bypracticing and continually enhancing effective corporate
governance.

Corporate Governance Structure
We are a company with auditors, overseen by a board of
directors, board of corporate auditors, and accounting auditors.
Governance Structure

Environment Beautification
The MIRAIT Group continually takes partin local clean-up activities. In addition toremoving litter and articles washedashore at Inage Beach in Inage Seaside
Park, Chiba Prefecture, we have been
participating in cleanup activities in thearea around Meguro River in Tokyo’s
Shinagawa Ward continuously since2003. At Daimei Tusan Corporation, a
MIRAIT Group company, on the 23rd of
every month, the Two-Three Day event isheld for cleanup activities around theheadquarters office in Koto Ward, Tokyo.
We also conducted many other cleaning
activities in addition to this example.

Election/Dismissal

General Meetings of Shareholders

Election/Dismissal

Election/Dismissal

MIRAIT Holdings
Audit

Board of Corporate Auditors
Collaboration

Utilization of Abandoned Fields andRice Paddies
All over Japan, abandonment of once
cultivated fields and rice paddies isincreasing, causing damage such as the
spread of weeds, pests, birds, and otheranimals to neighboring farmland. As acontribution to the local community,

MIRAIT Group affiliated company –Murayama Doken Co., Ltd. – is cultivatedrice in formerly abandoned land in
Tokamachi City, Niigata Prefecture. In
support of this effort, the MIRAIT Group
is calling on volunteers for rice planting
and reaping.

The MIRAIT Holdings Corporation recognizes the importance ofmanagement as a socially-responsible company and has put inplace organizational structures and systems to ensuretransparency and fairness in decision-making. Building
relationships founded in trust with all of our stakeholders is

Board of Directors

Supervision

Collaboration

Instruction

President and CEO(Executive Committee)

Internal inspection section
ReportingParticipation in the Toyosu Festa
The MIRAIT Group has participated in the
Toyosu Festa held by Tokyo’s Koto Wardevery year since our head office moved
to Toyosu in 2010.

29

Corporate Report 2018

The MIRAIT Corporation is using ICT technology to support the revitalization of the Fukushima
Tsuchiyu Hot Spring. Aiming to restore the Tsuchiyu Hot Spring in Fukushima prefecture devastatedby harmful rumors due to the nuclear incident after the Great East Japan Earthquake, Genki Up
Tsuchiyu Co., Ltd. is using waste heat for a hot spring binary power generation business with our
involvement (see the column on p.16) while furthering a business breeding fresh water prawns. In
March 2017, the MIRAIT Corporation Tohoku Branch Office and Solution Business Unit proposed
the use of a remote monitoring system for the temperature andquality of water as well as remote monitoring cameras that use
optical lines. This remote monitoring system measures the watertemperature as well as the pH and dissolved oxygen levels in
addition to sounding an alarm when an abnormal value is detected
Water Quality Sensor Installed
as an application for the stable farming of freshwater prawns. Thisin the Water Tank
freshwater prawn permaculture business is expanding as anindustry that gives new life to the city by providing these prawns tolocal Japanese inns while operating shrimp fishing ponds.
The MIRAIT Corporation will advance activities to support thereconstruction of Tohoku through this same kind of businesssupport in the future.
Freshwater Prawn

Accounting Auditor

Participating in Festivals
With the changes in social structure, acontinuation of the festivals that have beena tradition in all parts of Japan is becoming
increasingly difficult. The MIRAIT Group
companies advocate employees toparticipate in these local festivities. Our
employees also have had the opportunity
to carry the Mikoshi shrine.

Utilizing ICT Technology to Support the Revitalizationof the Fukushima Tsuchiyu Hot Spring

Investigation

Activities to promote
communication with local
communities

Reporting

Audit

Audit

Audit/Reporting- Strategy Department- Finance and Accounting Department- Corporate Affairs Department

Reporting- M’s Brain Center, etc.

Instruction

Business Management

Various Committees

Consultation/Reporting

MIRAIT Group Companies

Corporate Report 201830

Building and Maintaining the Trust of Society

Activity Status of the Board of Directors and Policies and Procedures for Nominating Directors and Auditors

Assessing Board Effectiveness

The MIRAIT Holdings Corporation generally convenes board of
directors meetings once a month but also brings together theboard of directors on other occasions as necessary to decideupon policies and important matters related to the managementof MIRAIT Holding Corporation and the Group in addition tomatters stipulated by laws and regulations as well as the
Articles of Incorporation. In addition to checking theperformance of directors in their duties from compliance withlaws and regulations to risk management, informational sharing
and the speed of resolving problems, the Company strives toensure the effectiveness of the board of directors as a whole byholding meetings between the President and outside directors
or auditors.
In the nomination process of candidates for the board of
directors and auditors, a wide variety of candidates are selectedfrom both inside and outside the company, and candidates
having superior personality, judgment and high management

The MIRAIT Holding Corporation conducts self-assessments
once a year on the effectiveness of the board of directors by all
the directors and auditors.
More specifically, we conduct a self-assessment using ananonymous questionnaire mainly to evaluate the board’s
composition, processes, responsibilities and functions, as wellas its state seen from the point-of-view of outside directors andcorporate auditors. The responses to these questions arecollected by an external law office with a duty of confidentiality
and analyzed by a third-party organization. The board of directors

skills are chosen by the board of directors.
Outside directors who have abundant experience andknowledge across different fields can nominate individuals fromthe perspective of enhancing the corporate value in medium- tolong-term of the firm by providing guidance and managerial
supervision, and who can carry out their roles and duties with a
specialized and objective viewpoint. Moreover, outside directors
who have abundant experience and knowledge across different
fields and with independent and objective views can properly
monitor the board of directors’ managerial decisions, executionof duties, and their observance of laws and ordinances,enhancing the transparency of the board. MIRAIT Holdings
appoints individuals who can contribute to the enhancement ofcorporate value as independent outside director candidates.
The rationale for selection of each director and auditor isoutlined in the notice of general meeting of shareholders.

Members of the Board of Directors (As of June 26, 2018)verify and assess the current state based on the results of thisanalysis, keeping raised issues on the agenda.
Our efforts in 2017 include setting up occasions for a freeexchange of ideas among directors about medium- to long-term
management strategies and challenges on the basis of theresults in the 2016 assessment. Some directors call forcontinued discussions on such material challenges.
We will work to sustain and improve board effectiveness byfurther deepening debates in the board of directors.

Introduction of Performance-linked Stock-based Compensation Plan
The MIRAIT Holding Corporation introduced aperformance-linked stock-based compensation plan from
September 2016 onwards for the purpose of further clarifying
the link between compensation of the MIRAIT Group’s
directors* and corporate performance and stock value as well as

incentivizing contributions to enhance medium- to long-term
performance and corporate value.
*This refers to MIRAIT Holdings Corporation and its subsidiaries, MIRAIT Corporation and
MIRAIT Technologies Corporation directors and executive directors (excluding outside
directors and non-executive directors).

Internal Control System

President and Chief
Executive Officer

Senior Executive Vice
President

Senior Executive Vice
President

Masatoshi
Suzuki

KouichiTakahatake

ToshikiNakayama

Director and Managing
Executive Officer
Chief Financial Officer

ManabuKiriyama

Our board of directors has adopted the Basic Policies for theInternal Control System to ensure the appropriateness ofoperations of the MIRAIT Group. We have also enacted
Administrative Regulations for Subsidiary Companies and aGroup-wide internal control system in our effort to appropriately
manage the Group through specific internal controls at our
subsidiary companies.

Audit by Corporate Auditors and Internal Audit
Director and Managing
Executive Officer
General Manager of theStrategy Department

Director and Managing
Executive Officer
General Manager of
the Corporate Affairs
Department

Director and Managing
Executive Officer
General Manager ofthe Emerging Business
OfficeYasuhiro
Yamamoto

Masayoshi
Hosokawa

Director (Outside)

Director (Outside)

Corporate Auditor

Eiji
Ebinuma

Chiharu
Baba

MasashiSogo

RyuichiHara

Director

Mikio
Doi

Corporate Auditor(Outside)

HiroshiSeki

Our corporate auditors set auditing policies and define
responsibilities of each corporate auditor by an audit plan. They
audit the execution of duties by directors by attending meetingsof the board of directors and other important meetings,
reviewing important approval documents, having discussions
with the President and interviewing each director. Our corporate
auditors also have regular meetings with the accounting auditor,
as part of their supervising and verifying activities, to judge
appropriateness of the methods used and conclusions reachedby the accounting auditor. In the regular meetings, our corporate
auditors receive reports and explanations on the audit plan andits progress, problems found as a result of audits, as well as thestatus of building systems to ensure adequate execution ofduties by the accounting auditor and of preparing and operatinginternal control related to financial reporting.
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. The section also strengthens internal control functions
by such means as thoroughly checking the progress of
implementing observations and suggestions from the audit.
The corporate auditors and the internal audit section works incoordination and have meetings as necessary to discuss audit
plans, current status of audits, and problems discovered in
audits.

Risk Management
Corporate Auditor

Auditor (Outside)

Keiji
Kitajima

ChiakiIshikawa(Chiaki Katsumaru)

31

Corporate Report 2018

Establishing the fundamental approaches of managing risks for
the Group in the Risk Management Regulations, we work to
perform effective control over various risk factors, and the Risk
Management Executive Committee – with the President at its
chair – reviews issues regarding risk control.
Regarding information security, the group has introduced
Information Security Management Systems (ISMS; ISO/IEC

27001) and will work painstakingly to prevent informationalleaks and safeguard assets. When an accident, including
information security accident, occurs, “0 Report” is immediately
shared with management. To be prepared for a resourcefulresponse, we have set up an in-company accident bulletin
reporting system.

Corporate Report 201832

Building and Maintaining the Trust of Society

ComplianceWith the Compliance Regulations in place, the Compliance
Executive Committee – with the President as its chair –deliberates on individual problems of the Group as well asControl of Insider Information and Fair Disclosure
manages the progress of promotion activities. We have also
distributed our Compliance Manual within the Group to shareawareness of business ethics throughout the organization.

The MIRAIT Group strives to disseminate accurate information
in a timely manner in accordance with the Disclosure Policy
published on the website and in other corporate materials. We
also fully and properly control information in accordance with

our Insider Trading Regulations when in the possession ofimportant information not yet released to the public domain
when meeting with shareholders and other investors.

Basic Approach to Payment of Taxes
The MIRAIT Group observes all laws and regulations concerning
taxation practices in all countries and regions where it operates,consistently working to maintain and raise its standards oftaxation compliance.

Basic Approach to Eliminating Antisocial Forces
We actively communicate with the local communities who are
the foundation for the existence of our organization in The
Corporate Ethics Charter of the MIRAIT Group. We are
steadfast in refusing all antisocial forces which may harm theEfforts to Vitalize the General Meetings of Shareholders
The MIRAIT Holdings Corporation actively endeavors to ensure
vitalization of the General Meetings of Shareholders and smoothvoting practices on matters through visualization and early
dissemination of convocation notices, online voting, and theorder and safety of civil society and will respond without
question under the basic policy to never be afraid to refusemonetary payments or engage in no relationship with antisocial
forces.

Message from Our Outside Director
Endeavoring to Communicate from Diverse, Objective
Points-of-View

Dialogue with Shareholders and Other Investors (IR Activities)
The MIRAIT Group consistently engages in IR activities, seeing
as a source of appropriate corporate evaluation and trust, as
well as a driver of sustainable growth and medium- to long-term

corporate value as a comprehensive engineering and service
company.

Timely Disclosure
The MIRAIT Group provides timely and appropriate informational
disclosure through TDnet and EDINET. We also take advantage
of mediums such as our corporate website(https://www.mirait.co.jp/en/) and press releases in an effort tofurther broaden our dissemination of information. The MIRAITGroup also strives to provide beneficial information that is easy
for shareholders and other investors to understand, such as
materials used in its IR activities.

The board of directors at the MIRAIT Holdings Corporation generally meets on
Tuesday afternoons. Except in some matters, the materials for the board of
directors meetings are sent to us the weekend before. This allows every director tolook through the materials over the weekend to spend enough time examining theinformation. I fully consider any points of issue or improvement and make notesfrom perspectives that not only include my background as a legal professional but
also my experience in administration, review and finance which I cultivated whileworking at a bank. Before the board of directors meet on that day, the outside
directors and auditors have an open and honest discussion to organize our thoughts
by checking whether any of our thoughts are self-serving. The President always
asks me if I have anything to add at the board of directors meetings. I do my best to
provide insight to each matter under deliberation. The MIRAIT Holdings Corporation
has an organizational culture where opinions of its outside directors are taken
seriously. I will continue to work to strengthen corporate governance and enhance
corporate value through the board of directors.

Efforts to Enhance Communication
The MIRAIT Group holds financial results briefings twice a year
for analysts and institutional investors and releases videos, suchas those on its website, to provide a look at these briefings. In
addition to providing important information in English in a timely
manner to overseas institutional investors, we also engage inoverseas IR activities in the North American, European and Asian
regions. At these briefings and overseas IR activities, our
President delivers explanations to encourage constructive
dialogue with our shareholders and other investors. The MIRAITGroup also participates accordingly in presentations to individual
investors and other events held by brokerage firms.
We 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 theGroup.
Furthermore, the Group also sends MIRAIT Report booklets that
include business performance and topics to all of theshareholders twice a year.

33

Corporate Report 2018

Financial results briefing materials(March 2018 term)

MIRAIT Report (8th term)

Scale of financial results briefings

creation of English convocation notices (abridged editions)among other measures. We also set up venues to get to know
our shareholders after the General Meetings of Shareholders
and work to have a broad exchange of views.

April 2002
Assistant Manager of Human Resources Division, Planning Team, Mizuho Bank, Ltd.
April 2003
Manager of President’s Office and Manager of General Planning Office, Olympic Co., Ltd.
December 2008
Registered as an attorney at law
April 2010
Part-time teacher at Sophia Law School (to present)
January 2013
Partner of Tanabe & Partners (to present)
April 2014
Member of Toranomon Hospital Clinical Review Board (to present)
Independent Committee Member, DC Co., Ltd.
June 2014
Director of MIRAIT Holdings Corporation (to present)
June 2016
Outside Director, Rakuten Bank, ltd. (to present)

Actively Contributing to Deliberation with Depth
The MIRAIT Group is in the midst of a dramatically changing management
environment, such as the growing social requirements related to broader corporate
governance and environmental stewardship in addition to rapidly advancing
technological innovations in the field of information and communication. In
response to this business environment, the MIRAIT Group has been actively
promoting business strategies that include expanding its business domains,enhancing internal and external business platforms as well as clearly improving its
business performance based on the Mid-term Management Plan formulated infiscal 2017. However, I think the Group must remain steadfast in overcoming
various management challenges to ensure even greater sustainable growth andlive up to its social responsibility as a comprehensive engineering and services
company. Therefore, the board of directors needs to engage in deliberation thathas depth and fully monitor the progress of business execution by providing proper
management, making appropriate and resolute decisions, and ensuring stablebusiness operations. I will actively provide comments from objective and long-term
perspectives to contribute to management in an era of rapid change based on theexperience and knowledge in different industrial sectors which I have cultivatedthrough managing financial institutions.
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. (current)
June 2018
Director of MIRAIT Holdings Corporation (to present)
Outside Director and Corporate Auditor,
Tohoku Electric Power Co., Inc. (current)

Outside Director

Outside Director

Eiji Ebinuma

Chiharu Baba

Corporate Report 201834

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
4,000

3,000

Gross profit/Gross profit margin(billion yen)

2,936

500
3,233
2,837
2,607 2,695

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

(%)

15

250

(billion yen)

(%)

234

230

12.7

3,263 3,129

400

2,832

11.7

11.8

331

335

300

9.6

12

397

200

9

(yen)

8

80

30

30

(%)

80

30

60

6
37.6

100

40

4

24.1

10
1,000

100

0

0
2014

2015

2016

2017 (year)

2014■Orders received ■Net sales

2016

2017

50

0

0

(billion yen)

(%)

10

0
2014

2015

2016

2017

(billion yen)

(%)

10

Net income/Net income ratio attributableto owners of parent
120(billion yen)

115

111

178
8

160

141

2015

6

8

148

100

5.0
80

5.3

(%)

5

2.3

40
0
2014

2015

2016

2017

80

90

2

40

0

0

1,800

■Operating income ■Operating income ratio

Total assets/Net assets
2,500

2017

(yen)

180
150
1,570.5

1,288

1,265

900

63.1

1

0

0
2014

100

2015

2016

2017

58.0

600

1,400

60

150

60
40

300

126

145.4

136.5

120

79.8

10

20

46

400
0

30

44.6

30
0
2014

2015

2016

2017

(%)

28

2014

2015

2016

0
2014

2015

2016

■Total assets ■Net assets

35

Corporate Report 20182017 (year)

0
2014

2015

2016

2017

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

400

300

2015

2016

2017

(year)

200

292

291

150

322

287

186
148
125
104

100
62
50

200

181

4

25

0

100

3.0

47

26

190

150

0

0
2015

2016

2017 (year)(billion yen)(billion yen)

6

2014

30

Cash Flow

8.8

8

2

24

■Capital investment ■Depreciation

Cash and equivalents/Interest bearing debt

9.5

24

0
2014

(year)

37

32

-50

-38

-22

-36

-26

2017

(year)

3

4

2014

2015

-36

-64

-100
0

(year)(billion yen)

60

132
500

2017

90
90

(year)

5.2

1,000

2016

120

1,500

289
56.9

(yen)

1,511.7

331
80

63.8
1,407

1,510.5

1,241

1,200

1,500

2015

Capital investment/Depreciation

1.3

30

Return on equity (ROE)
(%)

1,229

2014

(year)■Net income ■Net income ratio

1,372
1,228

1,949

2.3

(year)(billion yen)

2,180

1,261

2016

2017

2

■Ordinary income ■Ordinary income ratio

1,500

2,364

2,000 1,927

2

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

64

36

0
2015

2016

Net income per share

1,700

3

4

3.7
2.5

2014

(year)

2015

3.7

60
67

2014

1,733.1
4

3.9

6

5.7

105

5.2
4

3.5

61

120

2017 (year)

Net assets per share

1,600
120

2016

24.1

22.0

0

0
2014

(year)

167
160

0

20

22.0

■SG & A ■SG & A ratio

Ordinary income/Ordinary income ratio
200

20

2

(year)■Gross profit ■Gross profit margin

Operating income/Operating income ratio
200

2015

3

76.6
67.2

60

40
6

(%)

67.2

2,000
200

Total return ratio

20

6.7

150

30

7.4

7.3

258

10

35

8.3

197

189

Dividend payout ratio

Dividend per share

-111

-100

-150
2016

2017 (year)■Cash and equivalents ■Interest bearing debt
■Net cash

2014

2015

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

2016

2017

(year)■Free cash flow

Corporate Report 201836

Non-financial Data

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

As of March 31, 2018
The MIRAIT Group also prepares and discloses material non-financial data from its business activities,
taking steps to widen its scope.

Provision of renewable energy

Number of Qualifications

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

300,000(kW)

10,000288.336

4.0(billion yen)

Total outstanding shares: 85,381,866 shares (including 5,840,584 treasury shares)

3.6
8,000

240,000

7,449 7,459 7,548

Number of shareholders: 16,639 (excluding treasury shares)

7,579

7,328

200,884
180,000

60,0002.0

122,755

4,000

3,204

3,262

3,432

2016

2017

2014

2015

1.9

1.0

0

0
2015

2.7

3,386

3,278

2,000

47,4092013 2014

2.7

6,000

158,562

120,000

3.0

3.0

Major shareholders

0
2013

(FY)

2014

2015

2016

2017

2013

(FY)

Occupational Safety and HealthOccupational accident frequency rate

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

0.17

0.33

0.00

0.18

0.19

Diversity
Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

Ratio of women in new graduate hires

4.2%

13.0%

19.5%

23.9%

24.6%

Ratio of women in managerial positions

1.4%

1.8%

2.1%

2.7%

2.9%

0

1

1

1

Rate of parental leave taken by female employees

100%

100%

100%

100%

100%

Rate of annual paid leave

40.7%

49.5%

53.8%

53.3%

57.1%

Female directors (officers) and number of outside directors

1 (person)

Environment

CO2 emissions (t-CO2)

2017

(FY)

Name

■Number of software qualifications■Number of construction qualifications*Generation capacity (cumulative total) of our groupconstruction facilities

2016

162,360

20.41

Japan Trustee Services Bank, Ltd. (trust account)

47,686

6.00

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

37,434

4.71

Sumitomo Densetsu Co., Ltd.

24,886

3.13

STATE STREET BANK AND TRUST COMPANY 505001

23,532

2.96

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

14,215

1.79

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

13,1701.66

Mizuho Bank, Ltd.

12,299

1.55

THE BANK OF NEW YORK, TREATY JASDEC ACCOUNT

12,185

1.53

DFA INTL SMALL CAP VALUE PORTFOLIO

11,836

1.49*1 The ratio of shares held is calculated after subtracting the treasury shares (5,840,584).
*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.

Share distribution by owner (excluding treasury shares)
Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

Fiscal 2017

9,219

7,298

7,117

7,095

6,736

Number of shares by owner(shares)ratio

Number of shares by owner

22,241,057

28.0%

768,928

Other corporations in Japan(shares)ratio

Financial institutions

54

0.3%

1.0%

Financial Instruments business operators

31

0.2%

23,202,188

29.2%

Other corporations in Japan

272

1.6%

Foreign corporations, etc.

20,053,868

25.1%

Foreign corporations, etc.

205

1.3%

Individuals/other

13,275,241

16.7%

Individuals/other

16,077

96.6%

Total

79,541,282

100%

Total

16,639100%

Financial Instruments business operators(Value is the total for MIRAIT Holdings Corporation, MIRAIT Corporation, and MIRAIT Technologies Corporation – the three companies)

Corporate Report 2018

Ownership (%)

Sumitomo Electric Industries, Ltd.

Financial institutions

37

Number of shares held (in hundreds)

Corporate Report 201838