Consolidated Financial Results
for the Fiscal Year Ended March 31, 2020
[Japanese GAAP]May 8, 2020
Company name: MIRAIT Holdings Corporation
Stock exchange listing: TSE
Code number: 1417
URL: https://www.mirait.co.jp/
Representative: Masatoshi Suzuki, President and CEO
Contact: Masakazu Tsukamoto, Director and CFO
Phone: +81-3-6807-3124
Scheduled date of Ordinary General Meeting of Shareholders: June 24, 2020
Scheduled date of commencing dividend payments: June 25, 2020
Scheduled date of filing annual securities report: June 25, 2020
Availability of supplementary briefing material on annual results: available
Schedule of quarterly results briefing session: scheduled (for analysts and institutional investors)(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2020 (April 1, 2019 to March 31, 2020)(1) Consolidated Operating Results(% indicates changes from the previous period.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
million yen

Fiscal year ended
441,166
March 31, 2020
Fiscal year ended
375,911
March 31, 2019
(Note)
Comprehensive income:%million yen%

million yen%

million yen

%

17.4

21,993

6.3

23,207

5.5

15,220(40.8)

20.1

20,69923.8

21,992

23.3

25,711

123.5

Fiscal year ended March 31, 2020: 17,156 million yen (-25.8%)
Fiscal year ended March 31, 2019: 23,118 million yen (62.3%)

Net income per share

Diluted net
income per
share

yen

yen

Fiscal year ended
149.93
March 31, 2020
Fiscal year ended
295.34
March 31, 2019
(Reference)
Equity in earnings (losses) of affiliated companies:(2) Consolidated Financial Position
Total assets

%

%

－

7.4

6.8

5.0

259.19

15.4

7.8

5.5

Fiscal year ended March 31, 2020: 47 million yen
Fiscal year ended March 31, 2019: 272 million yen

Equity ratio

Fiscal year ended
March 31, 2020
Fiscal year ended
March 31, 2019

Net assets per share

million yen

Fiscal Year Ended
352,134
218,710
March 31, 2020
Fiscal Year Ended
331,462
199,559
March 31, 2019
(Reference)
Equity:Fiscal year ended March 31, 2020: 215,423 million yen
Fiscal year ended March 31, 2019: 196,435 million yen(3) Consolidated Cash FlowsNet cash provided by(used in) operating
activities

Operatingincome to net
sales

%

Net assets

million yen

Ordinary
income to total
assetsReturn on
equityNet cash provided by(used in) investing
activities

%

yen

61.2

2,006.42

59.3

1,933.82

Net cash provided by(used in) financing
activities

Cash and cash equivalents
at end of period

million yen

million yen

million yen

million yen

7,936(9,176)(2,814)

31,632

6,491(13,523)(1,928)35,657

2. Dividends
Annual dividends per share
1st
2nd
3rd
quarter-end quarter-end quarter-end
yen

Fiscal year ended
March 31, 2019
Fiscal year ended
March 31, 2020
Fiscal year ending
March 31, 2021
(Forecast)yen

Year-end

Total

yen

yen

yen

Total
dividends

Payout ratio(consolidated)

Dividends to
net assets(consolidated)

million yen

%

%

―

20.00

―

20.00

40.00

3,728

13.5

2.2

―

20.00

―

20.00

40.00

4,081

26.7

2.0

―

20.00

―

20.00

40.00

27.7

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2021 (April 1, 2020 to March 31, 2021)(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating income
Ordinary income
Net income per shareowners of parent
million yen

Full year

435,000% million yen(1.4)

22,000% million yen% million yen

%

yen

0.0

0.4

1.8

144.3623,30015,500* Notes:(1) Changes in significant subsidiaries during the period under review : None
(Changes in specified subsidiaries associated with changes in the scope of consolidation)(2) Changes in accounting policies, changes in accounting estimates and corrections of errors
1) Changes in accounting policies due to the revision of accounting standards, etc.: None
2) Any changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Corrections of errors: None
(3) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury stock):
March 31, 2020

108,325,329 shares

March 31, 2019108,325,329 shares

March 31, 2019

6,746,565 shares

March 31, 201987,057,294 shares2) Total number of treasury stock at the end of the period:
March 31, 2020

958,390 shares

3) Average number of shares outstanding during the period:
March 31, 2020

101,517,965 shares(Note) Total number of treasury stock includes the Company’s stock held by the Board Incentive Plan trust under the Company’s
performance-linked stock remuneration program for directors and executive officers.
* Status of execution of the audit of financial statements- This consolidated financial report is not subject to the audit of the financial statements under the Financial Instruments and Exchange
Act.
*Explanation for the appropriate use of financial forecasts and other special notes- While descriptions in this report regarding financial prospects and other future events are based on the information available at thetime this report was prepared, and based on certain assumptions considered to be reasonable. Accordingly our actual businessperformance may differ significantly from the prospects due to a number of factors.

○ Table of Contents: Supplementary Materials
1. Overview of Operating Results and Financial Position

P. 2(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2020

P. 2(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2020

P. 4(3) Overview of Cash Flows for the Fiscal Year Ended March 31, 2020

P. 5

(4) Future Outlook

P. 6(5) Basic Policy for Earnings Distribution and Dividend Payment for the Fiscal Year Ended March 31,

P. 62020 and the Fiscal Year Ending March 31, 2021
(6) Business Risks

P. 7

2. Overview of Corporate Group

P. 8

3. Management Policy

P. 9(1) Basic Management Policy

P. 9(2) Medium-term Management Strategy and Targeted Management Benchmarks

P. 9(3) Issues to be Addressed

P.10

4. Basic Approach Concerning the Selection of Accounting Policies

P.10

5. Consolidated Financial Statements

P.11(1) Consolidated Balance Sheets

P.11(2) Consolidated Statements of Income and Comprehensive Income

P.13(3) Consolidated Statement of Changes in Net Assets

P.15(4) Consolidated Statement of Cash Flows

P.17(5) Notes to Consolidated Financial Statements

P.19(Notes on going concern assumption)

P.19(Changes in accounting principles)

P.19(Changes in methods of presentation)

P.19(Changes in accounting estimates)

P.19(Segment information)

P.20(Per share information)

P.26(Significant subsequent events)

P.26

-1-

1. Overview of Operating Results and Financial Position(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2020
During the fiscal year ended March 31, 2020, the Japanese economy continued to recover moderately on theback of strong corporate earnings and improvement in labor market conditions. However, uncertainties havesuddenly risen with the novel coronavirus infection (COVID-19) pandemic and concerns regarding a prolonged
slowdown of the global economy and domestic consumption.
In the information and telecommunications sector, in which the MIRAIT Group operates its mainstay business,business is expected to expand with the telecommunications carriers transitioning their business models, theexpansion of services on new frequency bands for fourth-generation mobile telecommunication (4G), and thepenetration of fifth-generation mobile telecommunication (5G) for which commercial services commenced in
March 2020. Moreover, the business environment for the MIRAIT Group continues to evolve dramatically given
societal changes, including the acceleration of efforts to rebuild social infrastructure created during Japan’s highgrowth period particularly in the Greater Tokyo area, and the rise in demand for new solutions such as cloud and
Wi-Fi in light of the upcoming full-fledged era of IoT. Meanwhile, the MIRAIT Group also faces challenges
brought about by issues such as the aging population, shortage of labor and the need to achieve workstyle reforms.
In response to the structural changes in the society and the telecommunications environment, the MIRAITGroup is striving to further enhance its corporate value and to achieve sustainable growth as a “Comprehensive
Engineering and Services Company”. The Group adopted a new Medium-term Management Plan for the three
years starting in the fiscal year ended March 2020 (target for FYE March 2022: net sales of 450.0 billion yen,operating income of 27.0 billion yen (operating income ratio of 6.0%) and ROE of more than 8%). Under the
new management plan, the Group is expanding operations in various business areas with growth opportunities(the “frontier domains”), such as stock businesses including datacenter operations and maintenance,
environment/ energy-related businesses and global businesses. The Group is also taking steps to enhance
management efficiency by boosting productivity in existing businesses and generating synergies within theGroup with the addition of TTK Co., Ltd., SOLCOM Co., Ltd. and Shikokutsuken Co., Ltd. during the previous
fiscal year.
In the NTT business, the Group pursued growth in facility management operations and facility improvement
proposals and implemented measures such as the consolidation of branch offices to improve profitability, whilestrengthening its group-oriented management structure. The Group worked as an integrated team to support
immediate recovery of telecommunication facilities following Typhoon No. 15 and other natural disasters that
occurred during the year.
In the Multi-carrier business, the Group strived to win orders for new frequencies in 4G and launch ofcommercial services in 5G. The Group also took steps to further enhance its technological capabilities andhuman resources. Specifically, the Group participated in verification tests for new technologies in light of theupcoming full-scale rollout of 5G and established a training facility to develop multi-skilled engineers that areable to handle both fixed-line and mobile telecommunication construction and maintenance work.
In the Environmental and Social Innovation business, sales increased as a result of growth in electrical, airconditioning and civil engineering work, in addition to the completion of solar power projects. The Group added
Tokaikoei Inc. as a subsidiary to expand its business in water utility-related work.
In the ICT Solutions business, sales increased thanks to the Group’s efforts to grow LAN/ PBX-related
domestic business, win of a large software development project for a major consumer electronics retailer, fullscale launch of Osaka No. 1 datacenter, and increased sales of goods such as mobile-related construction
materials and PC/ servers for educational facilities. The Group added YL Integrated Pte Ltd, a Singapore-based
electrical construction company, as a subsidiary effective April 1, 2020 as part of its initiative to grow the global
business in the medium- to long-term.
Meanwhile, the MIRAIT Group repurchased shares (total of 6.5 million shares/ 10,453 million yen) to enhanceshareholder returns and based on its capital policy to respond flexibly to changes in the business environment. In
addition, the yen-denominated convertible bonds due 2021 were redeemed early on December 30, 2019. All stockacquisition rights were exercised, and treasury stock were transferred to the holders of the convertible bonds.

-2-

As for the consolidated financial results for the fiscal year ended March 31, 2020, orders received increased
by 13.7% year-on-year to 446,558 million yen, net sales increased by 17.4% year-on-year to 441,166 million yen,operating income increased by 6.3% year-on-year to 21,993 million yen, and ordinary income increased by 5.5%
year-on-year to 23,207 million yen. However, net income attributable to owners of parent decreased by 40.8%
year-on-year to 15,220 million yen, mainly due to the absence of extraordinary gains of 10,017 million yen
recorded in the previous year as a result of the mergers (negative goodwill and gain on step acquisitions).
Operating income ratio was 5.0% and ROE was 7.4%.
Business results by reporting segment are as mentioned below.
Note that year-on-year changes in performance for TTK Co., Ltd., SOLCOM Co., Ltd. and Shikokutsuken
Co., Ltd. that were acquired in the previous fiscal year are not stated, given that it is not possible to makecomparisons with the consolidated periods based on the accounting standards for business combinations (sixmonth period between October 2018 and March 2019 for TKK, and three-month period between January 2019and March 2019 for SOLCOM and Shikokutsuken).
[Business Results of MIRAIT]MIRAIT Corporation (“MIRAIT”) was committed to the early recovery of telecommunications facilities intyphoon disaster-affected areas, while expanding work for new frequencies in 4G and base station work for a
new mobile carrier. Also, MIRAIT made Tokaikoei Inc. a subsidiary to expand its water utility-related work
and witnessed sales growth for mobile-related construction materials. As for the financial results for the fiscal
year ended March 31, 2020, orders received increased by 6.8% year-on-year to 216,202 million yen and net
sales increased by 3.9% year-on-year to 210,694 million yen. However, operating income decreased by 0.9%
year-on-year to 12,607 million yen, mainly due to delays in some construction projects.
[Business Results of MIRAIT Technologies]
MIRAIT Technologies Corporation (“MIRAIT Technologies”) benefited from the growth in base station
work for a new mobile carrier in the Multi-carrier business, won a large-scale project for a major consumer
electronics retailer in the ICT Solutions business, and expanded datacenter operations/ maintenance and otherstock businesses. As a result, MIRAIT Technologies recorded sales and profit growth for the fourth consecutive
year. In the fiscal year ended March 31, 2020, orders received increased by 10.3% year-on-year to 119,533
million yen, net sales increased by 5.5% year-on-year to 125,779 million yen, and operating income increasedby 1.7% year-on-year to 3,966 million yen.
[Business Results of Lantrovision]
Lantrovision(S)Ltd Group (“Lantrovision”) strengthened collaborative sales efforts with the MIRAIT Groupthrough cross-referrals of customers and expanded its regional coverage and business domains through M&A
and other efforts. However, the company faced headwinds from the slowdown in investments within thefinancial and IT sectors in Asia on the back of trade tensions between the U.S. and China and weakening of
the Chinese economy. As for the financial results for the fiscal year ended March 31, 2020, orders received
decreased by 3.8% year-on-year to 18,312 million yen, net sales decreased by 4.1% year-on-year to 17,399
million yen, and operating income decreased by 69.3% year-on-year to 381 million yen.
[Business Results of TTK]TTK Co., Ltd. (“TTK”) embarked on efforts to enhance processes using construction work management
systems and to improve efficiency in the conventional carrier business by collaborating with subsidiaries, andexpanded its business in the “frontier domains” through active participation in bids for electrical/
environmental civil engineering projects for municipalities. As for the financial results for the fiscal year ended
March 31, 2020, orders received was 36,421 million yen, net sales was 35,775 million yen, and operating
income was 2,059 million yen.

-3-

[Business Results of SOLCOM]SOLCOM Co., Ltd. (“SOLCOM”) focused on achieving orders and sales by growing facility management
operations in the NTT business and by expanding its business in the “frontier domains” including CATV work,
sewerage conduit renewal work, ICT-related work on highways and work to build school affairs support
systems. Meanwhile, the company adopted initiatives to reduce indirect costs. As for the financial results forthe fiscal year ended March 31, 2020, orders received was 41,674 million yen, net sales was 37,648 million
yen, and operating income was 1,179 million yen.
[Business Results of Shikokutsuken]
Shikokutsuken Co., Ltd. (“Shikokutsuken”) achieved profit growth in the NTT and Multi-carrier businesses
and expanded the ICT Solutions business through increased sales of goods, including PC/ servers foreducational facilities, on the back of the consumption tax hike and demand for OS upgrade/ maintenance. As
for the financial results for the fiscal year ended March 31, 2020, orders received was 24,539 million yen, net
sales was 24,135 million yen, and operating income was 1,766 million yen.
[Business Results of MIRAIT Holdings Corporation]
The MIRAIT Holdings Corporation (“the Company”), as a holding company, handles the Group’s planning
functions including management strategy, and administrative functions such as finance, IR and general affairs.
The Company engages in business management and the promotion of business strategies, among otheroperations, for the entire MIRAIT Group, and in return receives management fees and dividends from theGroup’s business companies. The Company's operating revenue for the fiscal year ended March 31, 2020
increased by 39.7% year-on-year to 8,545 million yen and operating income increased by 53.4% year-on-year
to 6,723 million yen.
(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2020
Total assets at the end of the fiscal year ended March 31, 2020 amounted to 352,134 million yen, an increaseof 20,672 million yen from the end of the previous fiscal year. This consisted of an increase in current assets of
14,626 million yen and an increase in non-current assets of 6,045 million yen. This was mainly attributable tothe increase in accounts receivables such as accounts receivable from completed construction contracts, and theincrease in buildings and structures due to capital investments.
Total liabilities increased by 1,521 million yen to 133,424 million yen. The consisted of an increase in current
liabilities of 15,830 million yen and a decrease in non-current liabilities of 14,308 million yen. Current liabilities
increased primarily due to the increase in accounts payable such as accounts payable for construction contracts,
and the increase in short-term loans payable. Non-current assets decreased primarily due to the early redemptionof convertible bonds.
Net assets increased by 19,151 million yen to 218,710 million yen. This was mainly attributable to the transferof treasury shares due to the early redemption of convertible bonds and the increase in retained earnings of 11,258
million yen reflecting the net income attributable to owners of parent amounting to 15,220 million yen, whichmore than offset the decrease due to dividend payments and share repurchases.
As a result of the above, the equity ratio at the end of the fiscal year ended March 31, 2020 was 61.2%(compared to 59.3% at the end of the previous fiscal year), and net assets per share was 2,006.42 yen.

-4-(3) Overview of Cash Flows for the Fiscal Year Ended March 31, 2020
In the fiscal year ended March 31, 2020, cash and cash equivalents (hereinafter referred to as “funds”)
decreased by 4,025 million yen from the previous fiscal year to 31,632 million yen.
Cash flows by business activity and the underlying factors are described below.
①Cash flow from operating activities
Net cash inflow from operating activities was 7,936 million yen (inflow of 6,491 million yen in theprevious fiscal year). This was mainly attributable to income before income taxes of 23,332 million yen,which more than offset the decrease in funds from income taxes paid of an amount of 9,440 million yen.
②Cash flow from investment activities
Net cash outflow from investment activities was 9,176 million yen (outflow of 13,523 million yen in theprevious fiscal year). This was mainly attributable to the decrease in funds of 9,729 million yen due topurchases of property, plant and equipment.
③Cash flow from financing activities
Net cash outflow from financing activities was 2,814 million yen (outflow of 1,928 million yen in theprevious year). This was mainly attributable to the outflow of 10,802 million yen due to share repurchases
and 3,953 million yen due to dividend payments, which more than offset the inflow from the net increase in
short-term loans payable of 13,154 million yen.
(Reference) Trends in the Group’s cash flow indicators
Fiscal year
Fiscal year
ended March ended March
31, 2016
31, 2017
Equity ratio
Marked-to-market equity
ratio
Ratio of cash flow tointerest-bearing debt
Interest coverage ratio

Fiscal year
ended March
31, 2018

Fiscal year
ended March
31, 2019

Fiscal year
ended March
31, 2020

63.8

57.4

58.5

59.3

61.2

37.8

40.0

57.2

49.6

41.1

7.4

32.8

19.5

208.6

350.7

1,584.7

100.4

342.2

371.0

146.1

(Notes) 1. Calculation methods for each indicator are as follows:
Equity ratio: Equity / Total assets
Marked-to-market equity ratio: Total market capitalization / Total assets
Ratio of cash flow to interest-bearing debt: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest payment
2. All indicators are calculated based on consolidated financial data.
3. Total market capitalization is calculated by multiplying the closing share price as at the end of the fiscal
year by the number of shares outstanding as at the end of the fiscal year (after deducting treasury stock).
4. Cash flow used for the purposes of the calculation is the cash flow from operating activities as reported
in the Consolidated Statement of Cash Flows.
5. Interest-bearing debt includes all liabilities reported in the Consolidated Balance Sheets for whichinterest is paid. Interest payment is the amount of interest paid as reported in the Consolidated Statementof Cash Flows.

-5-(4) Future Outlook
As for the consolidated financial performance in the fiscal year ending March 31, 2021, work to install basestations and to build networks in line with the expansion of 5G commercial services, and business to offer new
solutions in light of the upcoming full-fledged era of IoT and developments in local 5G, GIGA school concept
and teleworking, are expected to increase. Meanwhile, the MIRAIT Group will continue to enhance efficiency
by strengthening its group-oriented management structure. However, at present, it is unpredictable as to when
the spread of COVID-19 will be contained, and the outlook is expected to remain uncertain for some time. The
impact from COVID-19 on the Group is limited at this point in time, but there are risks, such as the possibilityof delays in projects due to the postponement of the Tokyo Olympic and Paralympic Games (one year from theoriginal schedule of July 2020) and due to supply chain disruptions. Also, orders could decrease due to a
slowdown in the global economy or weakening of corporate earnings. Given that it is difficult to reasonably
estimate such impact, however, the Company’s forecast for the consolidated financial results for the fiscal year
ending March 31, 2021 reflects its intention to aim for results in line with the previous fiscal year. Specifically,
the forecast for orders received is 430.0 billion yen (-3.7% year-on-year), net sales is 435.0 billion yen (-1.4%
year-on-year), operating income is 22.0 billion yen (+0.0% year-on-year), ordinary income is 23.3 billion yen(+0.4% year-on-year) and net income attributable to owners of parent is 15.5 billion yen (+1.8% year-on-year).
The Company will disclose as appropriate, any deviations from the forecast that may become evident.
Note that the Company has not disclosed forecasts for the first half of the fiscal year.
(5) Basic Policy for Earnings Distribution and Dividend Payment for the Fiscal Year Ended March 31, 2020 and the
Fiscal Year Ending March 31, 2021
The Company’s basic policy is to pay dividends consistently based on its total shareholder return target of
more than 30%, while taking into consideration the Company’s business results and cash position. It is theCompany’s policy to use internal reserves to reinforce its financial position and to invest in businesses that will
enhance the corporate value of the Company.
Dividends from retained earnings are basically paid twice a year, in the form of an interim dividend and a yearend dividend. The Board of Directors is the decision-making body for interim dividends, and the General Meetingof Shareholders is that for year-end dividends. Payment of interim dividends as stipulated under Article 454,
Paragraph 5 of the Companies Act has been specified by the Articles of Incorporation of the Company.
Based on the above, the Company has decided to pay a year-end dividend of 20 yen per share for the fiscal
year ended March 31, 2020. Accordingly, the annual dividend including the interim dividend of 20 yen per shareis 40 yen per share.
The Company also repurchased shares (total of 6.5 million shares/ 10,453 million yen) to enhance shareholder
returns and based on its capital policy to respond flexibly to changes in the business environment.
The Company expects to pay 40 yen per share (interim and year-end dividends of 20 yen each) in the fiscal
year ending March 31, 2021.

-6-

(6) Business Risks
The MIRAIT Group is exposed to the following risks that could affect its operating results and financial
position. Forward-looking statements contained herein are based on the Group’s judgment as at the end of the
fiscal year ended March 31, 2020.
1) Risks associated with excessive dependence on particular clients
The main clients of MIRAIT Group are telecommunications carriers such as the NTT Group. Owing to the factthat they account for a large portion of net sales, their capital expenditures or technological breakthroughs andother factors could affect the Group’s business results.
2) Risks associated with safety and quality issues
The MIRAIT Group is wholly committed to ensuring safety and quality controls needed to deliver quality
engineering and services that deserve customers’ trust and appreciation, by leveraging the integrated safety andquality management system operated by its business companies.
However, in the event of serious accidents, quality issues or other contingencies, there may be severe social
consequences which may result in the loss of clients’ confidence and restrictions on the Group’s operating
activities, affecting its business results.
3) Risks associated with the management of critical information
In handling critical information, such as technical data and personal information provided by clients, the
MIRAIT Group is wholly committed to the prevention of leakage of classified information through the use of
ISMS (information security management system) operated by the business companies.
In the event of unforeseen information leakage, however, the Group may suffer liability for damages withpotential impact on its financial results. Such event may also result in the loss of client’s confidence, affecting
the Group’s business results.
4) Risks associated with uncertainties regarding clients’ credit quality
The MIRAIT Group adopts measures to avoid credit risks, such as the use of external credit agencies for client
credit risk management, and contract document reviews by the legal section.
However, if uncertainties arise regarding the credit quality of a client, the Group may not be able to collectfees for engineering work or may be forced to delay construction work, which could affect the Group’s businessresults.
5) Risks associated with assets held by the Group
The MIRAIT Group holds assets such as real estate and securities that are required for operational purposes.
Significant fluctuation of the fair values thereof could affect the Group’s business results.
6) Risks associated with natural disasters
The MIRAIT Group has adopted a business continuity plan (BCP) with countermeasures against events
such as earthquakes and other natural disasters, as well as pandemics.
However, the occurrence of contingencies such as shortages of electricity, fuel or materials due to supply
chain disruptions resulting from prolonged impacts of large-scale natural disasters and other events may
affect the Group’s business results.
Note that the impact from COVID-19 on the Group’s business is limited at present.

-7-

2. Overview of Corporate Group
The MIRAIT Group comprises MIRAIT Holdings Corporation as the holding company, and 75 consolidated
subsidiaries including MIRAIT Corporation, MIRAIT Technologies Corporation, Lantrovision(S)Ltd, TTK Co.,
Ltd, SOLCOM Co., Ltd and Shikokutsuken Co., Ltd. The main businesses operated by the Group are NTT business,
Multi-carrier business, Environmental & Social Innovation business, and ICT Solutions business.
The Group’s operational structure is as follows.
(As of March 31, 2020)
Clients
Providing of "Comprehensive engineering & service"・NTT business・Multi-carrier business・Environmental & social innovation business・ICT solution business

MIRAIT GroupMIRAIT Corporation[Consolidated subsidiaries]
M's Frontier Corporation
DAIMEI TECHNO CO., LTD.
Meisei Correspondence Co., Ltd. Nisshin Tsuko Co., Ltd.
SINKO ELECTRIC CORP.
MIRAIT-X Corporation
Nissetsu Co., Ltd.
Okisokou Co., Ltd.
Trust System Inc.
HOPE NET Co.,Ltd.
[Affiliates accounted for using the equity method] 1Company

KOKKO SYSTEMS CO., LTD.
DAIMEI NETWORK CO., LTD.
TODENTSU Access Corporation
Libnet Corporation
Line Connect Corporation

Tohoken System Engineering Corp.
DAIMEI TSUSAN CORP.
TODENTSU Network Corporation
TIMETEC Co.,Ltd.
Tokai-koei Inc.

COTONET ENGINEERING Co., Ltd.
Nishinihon Denko Corporation
MIRAIT Information Systems Co., Ltd.
CREiST Inc.
MIRAIT Technologies Myanmar Co.,Ltd.

Ligare Co., Ltd.
Ground Create Co., Ltd.
ACTIS Co.,Ltd.

MIRAIT Technologies Corporation[Consolidated subsidiaries]
AST-ENG Corp.
Lapisnet Co.,Ltd.
Agility RISE Co.,Ltd
Comlead Co., Ltd.
KATAKURA CONSTRUCTION Co.,Ltd.
Fucom Corp.
Kinki Denki Corp.
MIRAIT Technologies Australia Pty.Limited[Affiliates accounted for using the equity method] 3 Companies

MIRAIT Holdings Corporation

Lantrovision(S)Ltd[Consolidated subsidiaries]
Lantro (S) Pte Ltd
Lantro (Malaysia) Sdn Bhd
Lantrovision Korea Co.Ltd
Lantro (Shanghai) Co.Ltd
Lantro Phils. Inc.
Lantro (Penang) Sdn Bhd
Lantro Technologies India Private Limited
PT. Lantro Technologies Indonesia[Affiliates accounted for using the equity method] 5 Companies

Lantro (HK) Limited
VRnet (S) Pte Ltd
Hangzhou Lantro Co.Ltd
Appsilan Asia Pte Ltd
ADNOS SOLUTIEN Pte Ltd
Lantro Myanmar Co. Ltd
Innovative Energy Systems & Technology Pte. Ltd.

Lantro (Taiwan) Ltd
Infilan Pte Ltd

TTK Co., Ltd[Consolidated subsidiaries]
Tobu Telephone Construction Co., Ltd.
Hakko Telecommunication Construcion Co., Ltd.
Fukushima Telephone Construction Co., Ltd.

Hokubu Densetu Co., Ltd.
Sensyu Telecommunication Construction Co., Ltd.
TTK Techno Inc.

Morioka TelephoneConstruction Co., Ltd.
Yamagata Telecommunication Construction Co., Ltd.
Tsukada Electrical Construction Co., Ltd.

Yuwa Kogyo Co., Ltd.
Chugoku Telecommunication Materials Co., Ltd.

Solcom Business Service Inc.
Dentsu Material Inc.

SOLCOM Co., Ltd[Consolidated subsidiaries]
Solcom Meister Inc.
Seiken Kogyo Co., Ltd.

[Affiliates accounted for using the equity method] 2 Companies

Shikokutsuken Co., Ltd.
[Consolidated subsidiaries]
OchidenkiCorporation-8-

Changes in affiliated companies are as follows:① MIRAIT Corporation made Tokaikoei Inc. a consolidated subsidiary by acquiring shares in the company.
② Practical Solutions Inc., a consolidated subsidiary of MIRAIT Technologies Corporation, changed its
corporate name to CREiST Inc.
③ Lantrovision(S)Ltd made PT. Lantro Technologies Indonesia consolidated subsidiary by acquiring sharesin the company.
④ Ainet Telecommunications Co., Ltd., previously a consolidated subsidiary of SOLCOM Co., Ltd., wasdissolved following the merger with Solcom Meister Inc.
3. Management Policy(1) Basic Management Policy
The MIRAIT Group aims to enhance its corporate value and to achieve sustained growth by:(i) Striving to be a leading Japanese corporation that realizes the highest levels of customer satisfaction andtrust as a "Comprehensive Engineering & Services Company" that continually creates new value centeredon the field of information and telecommunications;(ii) Contributing to the realization of an enriched and comfortable society by placing value on safety and quality
and offering the highest level of services.
(iii) Continuing to be an enterprise that coexists and mutually prospers with people and society, fulfilling its
corporate social responsibility and respecting humanity.
(2) Medium-term Management Strategy and Targeted Management Benchmarks
As stated in “1.Overview of Operating Results and Financial Position (1) Overview of Operating Results for
the Fiscal Year Ended March 31, 2020”, the MIRAIT Group believes that it must strive to improve management
efficiency and productivity of existing businesses, while strengthening the competitiveness of the “frontierdomains” in the medium- to long-term, in order to enhance its corporate value and to achieve sustainable growth
as a “Comprehensive Engineering and Services Company” amid changes in the external environment. The Groupestablished a new Medium-term Management Plan for the three years starting in the fiscal year ended March 31,
2020 and aims to achieve the targets set forth below.
〔Outline of New Medium-term Management Plan〕①Targets （FYE March 2022）
450.0 bil. yen
・Net sales
・Operating income 27.0 bil. yen（Operating income ratio
More than 8%
・ROE

6.0％）

②Key initiatives
・Generate new business opportunities
・Accelerate transformation of business structure
・Enhance productivity and reduce costs through efficient operations
・Strengthen human resources
・Promote ESG-oriented management, safety and quality initiatives
・Capital policy-9-(3) Issues to be Addressed
The business environment surrounding the MIRAIT Group is at a turning point. In the information andtelecommunications sector, business is expected to expand with the telecommunications carriers, the main
customers of the Group, transitioning their business models, the expansion of services on new frequency bands
for fourth-generation mobile telecommunication (4G), and the penetration of fifth-generation mobile
telecommunication (5G) for which commercial services commenced in March 2020. Moreover, the businessenvironment for the MIRAIT Group is expected to continue to evolve dramatically given societal changes,
including the acceleration of efforts to rebuild social infrastructure created during Japan’s high-growth period
particularly in the Greater Tokyo area, and the rise in demand for new solutions such as cloud and Wi-Fi in lightof the upcoming full-fledged era of IoT and developments in local 5G, GIGA school concept and teleworking.
Meanwhile, the MIRAIT Group also faces challenges brought about by issues such as the aging population,shortage of labor and the need to achieve workstyle reforms.
Against this backdrop, the MIRAIT Group must aggressively expand its business in growth areas (the “frontierdomains”) such as stock, environment/ energy-related and global businesses. The Group must also generatesynergies with the companies that were integrated in the fiscal year ended March 31, 2019, implement measures
to enhance construction work capabilities, strengthen the customer base and further promote management
efficiency by improving the profit structure.
In response to concerns of a prolonged impact from the COVID-19 pandemic, the MIRAIT Group will adopt
stringent measures to ensure a safe and hygienic working environment for all staff, including those at
subcontractors. Under the Fourth Medium-term Management Plan (target for FYE March 2022: net sales of 450.0
billion yen, operating income of 27.0 billion yen (operating income ratio of 6.0%) and ROE of more than 8%),the Group will continue to strive to enhance its corporate value and to achieve sustainable growth as a“Comprehensive Engineering and Services Company” that can contribute to a safe and secure society.
In the fiscal year ending March 31, 2021, the Group will take initiatives to achieve the following:① Expand new “frontier domains”
・Improve operational efficiency and adopt stringent standards to select profitable projects.
・Establish an operational system that can respond flexibly to diverse customer needs.
・Enhance engineering capabilities by strengthening collaboration across the Group.
② Enhance management efficiency and improve productivity of existing businesses
・Reduce costs by benchmarking and by implementing measures across the Group.
・Develop cross-divisional, multi-skilled engineers to secure sufficient workforce.
・Promote initiatives to reduce indirect costs.
4. Basic Approach Concerning the Selection of Accounting Policies
The MIRAIT Group operates its businesses primarily in Japan. Hence, the policy of the Company is to prepare
its consolidated financial statements based on Japanese accounting standards for the time being. The Company will
respond appropriately based on developments of its overseas businesses and the situation with other Japanesecompanies in applying IFRS (International Financial Reporting Standards).
<Notes>This document contains forward-looking statements based on the plans, outlooks, management strategies andpolicies of the Group at the time of its issuance. Such forward-looking statements describe management
judgments and assumptions based on information available at this time.
As such, actual business results could be significantly different from those stated in this document due tochanges in the various underlying conditions. Thus, please be advised that the Company cannot guarantee theaccuracy of the forward-looking statements in this document into the future.
- 10 -

5. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

AssetsCurrent assets
Cash and deposits
Notes receivable – trade38,206
1,462

33,543
1,412

Accounts receivable from completed construction contracts
Accounts receivable – trade126,666
5,235

137,914
8,257

Costs on uncompleted construction contracts and otherPrepaid expenses

28,4001,018

32,7581,230

Accounts receivable – other
Lease investment assets

1,284
4,983

1,776
6,123

Other
Allowance for doubtful accounts

3,886
(58)

2,791
(96)

211,085

225,712

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

53,51756,618

Machinery, vehicles, tools, furniture and fixtures
Land

15,12931,707

16,99732,806

Leased assets
Construction in progress

6,281
699

7,064
1,383

Accumulated depreciation(28,495)(32,274)

Total property, plant and equipment

78,84082,596

Customer related assets
Goodwill

2,060
3,220

1,943
2,921

Software
Other

1,656
121

1,729
118

Intangible assets

Total intangible assets

7,058

6,711

Investments and other assets
Investment securities

27,12330,139Retirement benefit asset
Deferred tax assets

2,433
1,835

1,967
2,081

Leasehold and guarantee deposits
Other

1,337
1,890

1,385
1,687

Allowance for doubtful accounts

(144)

(147)

Total investments and other assets
Total non-current assets
Total assets- 11 -

34,476

37,114

120,376

126,422331,462352,134

(Millions of yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Liabilities
Current liabilities
Notes payable – trade
Accounts payable for construction contracts

1,528
49,366

1,538
57,199

Short-term loans payable
Accounts payable – other

3,602
6,768

16,7893,405

Income taxes payable
Advances received on uncompleted construction contracts

4,667
5,549

3,281
4,670

Lease obligations
Provision for loss on construction contracts

2,958
515

3,371
959

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

7,035
148

7,515
120

Provision for warranties for completed construction
Other

9
6,757

7
5,878

Total current liabilities

88,908104,738

Convertible bond-type bonds with share acquisition rights
Long-term accounts payable – other

16,544
159－
213

Lease obligations
Deferred tax liabilities

6,873
1,285

7,607
1,650

41
180

41
128

194
17,213282
17,635

114
385

172
953

Non-current liabilities

Deferred tax liabilities for land revaluation
Provision for retirement benefits for directors (and other officers)
Provision for share-based compensation
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities

42,994

28,685

131,903

133,424

Shareholders' equity
Capital stock

7,000

7,000

Capital surplus
Retained earnings

71,559124,287

69,399135,546

Treasury shares(9,684)(1,386)

Total shareholders' equity

193,163

210,559

Valuation difference on available-for-sale securities
Revaluation reserve for land

3,028
(98)

4,967
(98)

Foreign currency translation adjustment
Remeasurements of defined benefit plans

(493)
836

(281)
276

Total accumulated other comprehensive income

3,272

4,863

Total liabilities
Net assets

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets- 12 -

3,123

3,287

199,559

218,710331,462352,134

(2) Consolidated Statements of Income and Comprehensive Income(Millions of yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

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

375,911
328,923

441,166
388,991

Gross profit on completed construction contracts

46,98852,174

Selling, general and administrative expenses

26,28930,181

Operating profit

20,69921,993Non-operating income
Interest income

108

158

Dividend income
Insurance premiums refunded cancellation

629
112

906
175

Share of profit of entities accounted for using equity method
Other

272
362

47
427

1,485

1,716

Total non-operating income
Non-operating expenses
Interest expenses

1754

Foreign exchange losses
Bad debts expenses

59
25

262

Other

89

－
183

Total non-operating expenses

192

501

Ordinary profit

21,992

23,207Extraordinary income
Gain on step acquisitions

1,058

Gain on sales of non-current assets
Gain on sales of investment securities

821
1,225

－
406
56

Gain on bargain purchase
Other

8,958
450

－
－

Total extraordinary income

12,514463

Compensation for damage
Loss on sales of non-current assets

24
23

14
4

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

637
0

106
62

Loss on valuation of investment securities
Business restructuring expenses

2
60

40
41

Other

197

67

Total extraordinary losses

946

338

33,56023,332Extraordinary losses

Profit before income taxes- 13 -

(Millions of yen)
Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Income taxes – current
Income taxes – deferred

7,922
(321)

8,325
(574)

Total income taxes

7,600

7,751

Profit25,95915,581

Profit attributable toProfit attributable to non-controlling interests

248

360

25,711

15,220

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(1,832)
(810)

1,925
208

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using
equity method
Total other comprehensive income

(172)

(560)

(25)

0

Profit attributable to owners of parent
Other comprehensive income(2,840)1,574

Comprehensive income

23,11817,156Comprehensive income attributable toComprehensive income attributable to owners of parent

22,886

16,811

232

344

Comprehensive income attributable to non-controlling interests- 14 -

(3) Consolidated Statement of Changes in Net Assets
Fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

7,000

Retained earnings

27,563

101,789

Treasury shares

Total shareholders'equity(5,168)131,184

Changes of items during period
Dividends of surplus(3,185)(3,185)

Profit attributable to owners ofparent25,711

25,711

Purchase of treasury shares
Disposal of treasury shares

0

Increase by merger

7

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes of items other thanshareholders' equity

18

19(4,701)

38,861

426

(27)

170

570

－

43,99622,498(4,515)61,9787,000

71,559124,287(9,684)

193,163

Total changes of items during period
Balance at end of current period(4)743,562

Changes by share exchanges(4)

Accumulated other comprehensive income
Total
Valuation
Foreign currency Remeasurements accumulated Non-controlling Total net assets
difference on
Revaluationinterests
translationof defined
otheravailable-for-sale reserve for land
adjustment
benefit planscomprehensive
securities
incomeBalance at beginning of current
period

4,836

(98)

327

1,009

6,073

3,486

140,744

Changes of items during period
Dividends of surplus(3,185)

Profit attributable to owners ofparent25,711

Purchase of treasury shares(4)

Disposal of treasury shares

19

Increase by merger

738,861

Changes by share exchanges
Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period570(3,164)(1,807)

－

(821)

(172)

(2,801)(362)(1,807)

－

(821)

(172)

(2,801)(362)

58,814

(493)

836

3,272

3,123

199,559

3,028

(98)

- 15 -

Fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

7,000

Retained earnings

71,559124,287

Treasury shares

Total shareholders'equity(9,684)

193,163

Changes of items during period
Dividends of surplus(3,962)(3,962)

Profit attributable to owners ofparent15,22015,220Purchase of treasury shares
Disposal of treasury shares(10,883)(10,883)

19,112

16,891(2,221)－

Increase by merger

53

Changes by share exchanges
Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes of items other thanshareholders' equity

122

7

7

－

(2,159)11,258

8,298

17,396

7,000

69,399135,546(1,386)

210,559

Total changes of items during period
Balance at end of current period

69

Accumulated other comprehensive income
Total
Valuation
Foreign currency Remeasurements accumulated Non-controlling Total net assets
difference on
Revaluationinterests
translationof defined
otheravailable-for-sale reserve for land
adjustment
benefit planscomprehensive
securities
incomeBalance at beginning of current
period

3,028

(493)

(98)

836

3,272

3,123

199,559

Changes of items during period
Dividends of surplus(3,962)

Profit attributable to owners ofparent15,220Purchase of treasury shares(10,883)

Disposal of treasury shares

16,891

Increase by merger－

Changes by share exchanges

122

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes of items other thanshareholders' equity

7
1,939

－

212

(560)

1,590

163

1,754

Total changes of items during period

1,939

－

212

(560)

1,590

163

19,151

Balance at end of current period

4,967

(98)

(281)

276

4,863

3,287

218,710- 16 -

(4) Consolidated Statement of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2019
Cash flows from operating activities
Profit before income taxes
Depreciation
Gain on bargain purchaseAmortization of goodwill
Share of loss (profit) of entities accounted for using equity method

Fiscal year ended
March 31, 2020

33,56023,332

4,085

5,897

(8,958)
399

－
499
(47)

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

(272)
101
879

Increase (decrease) in provision for loss on construction contracts
Increase (decrease) in other provision

(20)
90

442
5

Remeasurements of defined benefit plans
Increase (decrease) in net defined benefit asset and liability

(182)
218

(560)
888

Interest and dividend income
Interest expenses

(738)
17

(1,065)54

Foreign exchange losses (gains)
Loss (gain) on step acquisitions

61

225

(1,058)Loss (gain) on sales of investment securities
Loss (gain) on sales and retirement of non-current assets(1,218)
(210)

－
6
(295)

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in costs on uncompleted construction contracts andother
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in advances received on uncompleted construction
contracts
Increase (decrease) in accrued consumption taxes
Decrease (increase) in consumption taxes refund receivable(25,931)(13,738)

8,811(4,300)

3,975

7,361

(1,863)

(825)

1,412

(775)
381

Increase/decrease in other assets/liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities- 17 -(1,576)
2,504

51
479

(231)

(1,433)(293)

13,856

16,290

783

1,141

(17)

(54)

(8,130)(9,440)

6,491

7,936

(Millions of yen)
Fiscal year ended
March 31, 2019
Cash flows from investing activities
Payments into time deposits

Fiscal year ended
March 31, 2020

(1,185)
1,752

Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment(16,153)
1,136

Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Proceeds from cancellation of insurance funds
Other, net
Net cash provided by (used in) investing activities(1,276)
2,017(9,729)

(806)

716
(677)

(23)
1,660

(633)
479

(398)

(15)

309

208

185

(264)

(13,523)(9,176)

2,890
(248)

13,154
(108)

(4)
－

(10,802)340(3,182)(88)(3,953)
(170)

(490)

(72)

(910)
106

(1,203)(1,928)(2,814)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Proceeds from disposal of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in subsidiaries that do
not result in change in scope of consolidation
Repayments of finance lease obligations
Other, net
Dividends paid to non-controlling interests
Effect of exchange rate change on cash and cash equivalents

1

(412)

4

Net increase (decrease) in cash and cash equivalents(9,372)(4,049)Cash and cash equivalents at beginning of period

32,21835,657

Increase in cash and cash equivalents from newly consolidated subsidiary
Increase in cash and cash equivalents resulting from merger withunconsolidated subsidiaries
Cash and cash equivalents at end of period

12,811－－

24

35,657

31,632- 18 -

(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Changes in accounting principles)
Not applicable.
(Changes in methods of presentation)(Consolidated statements of income and comprehensive income)
The Company has decided to present “Loss on sales of investment securities”, “Loss on valuation of
investment securities” and “Business restructuring expenses”, previously included in “Extraordinary losses –Other”, as separate items from the consolidated fiscal year under review, given that they represent more thanten one-hundredths of total extraordinary losses. The consolidated financial statements for the previous fiscal
year have been restated in order to reflect this change in presentation.
Consequently, “Extraordinary losses – Other” of 260 million yen in the consolidated statements of income
and comprehensive income of the previous fiscal year has been reclassified as “Loss on sales of investment
securities” of 0 million yen, “Loss on valuation of investment securities” of 2 million yen, “Businessrestructuring expenses” of 60 million yen and “Other” of 197 million yen.
(Consolidated cash flow statement)
The Company has decided to present “Net increase (decrease) in short-term loans payable”, previously aseparate item under “Cash flows from investing activities”, under “Other, net” from the consolidated fiscal
year under review, given that the amount is no longer significant. The consolidated financial statements for theprevious fiscal year have been restated in order to reflect this change in presentation.
Consequently, “Net increase (decrease) in short-term loans payable” of 6 million yen and “Other, net” of 179
million yen under “Cash flows from investing activities” in the consolidated cash flow statement of theprevious fiscal year have been reclassified as “Other, net” of 185 million yen.
(Changes in accounting estimates)
Not applicable.

- 19 -

(Segment information)[Segment information]
1. Description of reportable segments(1) Method of determining reportable segments
The reportable segments of the Company are individual units for which separate financial information isavailable, and that are subject to a periodic review by the Board of Directors for the purposes of determining theallocation of management resources and evaluating performance.
Under the guidance of the Company as the holding company of the MIRAIT Group, the business groups, which
are centered on the business companies, form comprehensive strategies and engage in activities for theirrespective businesses.
Hence, the six reportable segments of the Company are “MIRAIT”, “MIRAIT Technologies”,“Lantrovision”, “TTK”, “SOLCOM” and “Shikokutsuken”.
(2) Types of products and services attributable to each reportable segment“MIRAIT”, “MIRAIT Technologies”, “Lantrovision”, “TTK”, “SOLCOM” and “Shikokutsuken” mainly
engage in telecommunications engineering work/ electrical work and air conditioning/ sanitary construction work.
2. Method of calculating sales, income, assets and other items for each reportable segment
Accounting methods applied to the reportable business segments are generally in line with those applied to theconsolidated financial statements.
Segment income reflects the operating income for each reportable segment.
Internal revenue and transfers between segments are based on actual market prices.

- 20 -

3. Sales and income, assets and other items by reportable segment
Fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)(million yen)
Reportable segment
MIRAIT
Technologies

Lantrovision

201,622

110,581

18,147

22,20813,671

9,679

375,910

1,130

8,633

－

189

82

40

10,076

202,752

119,214

18,14722,397

13,7549,719

385,986

Segment income

12,716

3,899

1,239

1,613

808

580

20,857

Segment assets

150,353

101,096

20,99632,091

41,70721,514

367,760

1,691

1,573

276

346

163

21

4,073

3,219

15,052

139

429

408

94

19,344

Adjustments(Note 2)

Amount inConsolidated
Financial
Statements(Note 3)MIRAITTTKSOLCOM

ShikokutsukenTotal

Net sales
Net sales toexternal customers
Inter-segment sales
or transfers
Total

Other items
Depreciation andamortization
Increase inproperty, plant andequipment andintangible assets

Other(Note 1)Total

Net sales
Net sales toexternal customers
Inter-segment sales
or transfers

1375,911－375,911

6,116

16,193(16,193)－

6,118

392,105(16,193)375,911

Segment income

4,383

25,241(4,541)

20,699Segment assets

163,362

531,123(199,661)

331,462

Total

Other items
Depreciation and
12
4,085
4,085
－
amortization
Increase inproperty, plant and1
19,346
19,346－equipment andintangible assets(Notes) 1. The "Other" segment refers to the Company (pure holding company) which does not belong to any business segment.
2. The amounts adjusted are as follows:(1) Adjustments for segment income in the amount of (4,541) million yen include adjustments for dividends in the amount of(4,436) million yen and adjustments for retirement benefits in the amount of 202 million yen, respectively.
(2) Adjustments for segment assets in the amount of (199,661) million yen include the netting of investments and capital in
the amount of (128,536) million yen and the netting of receivables in the amount of (56,643) million yen.
3. Segment income is adjusted to the operating income reported in the Consolidated Statement of Income andComprehensive Income.

- 21 -

Fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(million yen)
Reportable segment
MIRAIT
Technologies

Lantrovision

209,450

117,474

17,39935,26637,53024,042

441,163

1,243

8,305

－

508

118

93

10,269210,694

125,779

17,39935,77537,64824,135

451,432

Segment income

12,607

3,966

381

2,059

1,179

1,766

21,960

Segment assets

160,846

112,189

20,42930,64839,81820,826

384,758

1,901

2,136

321

775

655

94

5,884

2,113

5,015

419

625

681

795

9,651

Adjustments(Note 2)

Amount inConsolidated
Financial
Statements(Note 3)MIRAITTTKSOLCOM

ShikokutsukenTotal

Net sales
Net sales toexternal customers
Inter-segment sales
or transfers
Total

Other items
Depreciation andamortization
Increase inproperty, plant andequipment andintangible assets

Other(Note 1)Total

Net sales
Net sales toexternal customers
Inter-segment sales
or transfers

2

441,166－

441,166

8,542

18,811(18,811)－8,545

459,978(18,811)441,166

Segment income

6,723

28,683(6,690)21,993

Segment assets

166,240

550,999(198,865)

352,134

Total

Other items
Depreciation and
12
5,897
5,897
－
amortization
Increase inproperty, plant and
20
9,671
9,671
－
equipment andintangible assets(Notes) 1. The "Other" segment refers to the Company (pure holding company) which does not belong to any business segment.
2. The amounts adjusted are as follows:(1) Adjustments for segment income in the amount of (6,690) million yen include adjustments for dividends in the amount of(6,824) million yen and adjustments for retirement benefits in the amount of 55 million yen, respectively.
(2) Adjustments for segment assets in the amount of (198,865) million yen include the netting of investments and capital in
the amount of (128,322) million yen and the netting of receivables in the amount of (71,486) million yen.
3. Segment income is adjusted to the operating income reported in the Consolidated Statement of Income andComprehensive Income.

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(Associated information)
Fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)
1. Information for individual products and services
Information for individual products and services is omitted given that telecommunication engineering andelectrical facility work account for more than 90% of net sales reported in the Consolidated Statement of Income
and Comprehensive Income.
2. Information for individual regions(1) Net sales
Information on net sales for individual regions is omitted given that sales to domestic external customers account for
more than 90% of net sales reported in the Consolidated Statement of Income and Comprehensive Income.
(2) Property, plant and equipment
Information on property, plant and equipment for individual regions is omitted given that domestic assets
represent more than 90% of property, plant and equipment as reported in the Consolidated Balance Sheet.
3. Information regarding major customers
Name of customer(million yen)
Associated business segments

Net sales

MIRAIT

Nippon Telegraph and Telephone
East Corporation

74,299 MIRAIT Technologies
TTK
MIRAITMIRAIT Technologies

NTT DOCOMO, INC.

42,645 TTKSOLCOM
Shikokutsuken
MIRAIT

Nippon Telegraph and Telephone
West Corporation

39,616MIRAIT Technologies
SOLCOM
Shikokutsuken- 23 -

Fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)
1. Information for individual products and services
Information for individual products and services is omitted given that telecommunication engineering andelectrical facility work account for more than 90% of net sales reported in the Consolidated Statement of Income
and Comprehensive Income.
2. Information for individual regions(1) Net sales
Information on net sales for individual regions is omitted given that sales to domestic external customers account for
more than 90% of net sales reported in the Consolidated Statement of Income and Comprehensive Income.
(2) Property, plant and equipment
Information on property, plant and equipment for individual regions is omitted given that domestic assets
represent more than 90% of property, plant and equipment as reported in the Consolidated Balance Sheet.
3. Information regarding major customers(million yen)
Name of customer

Net sales

Associated business segments
MIRAIT

Nippon Telegraph and Telephone
East Corporation

87,368MIRAIT Technologies
TTK
MIRAIT

Nippon Telegraph and Telephone
West Corporation

55,496MIRAIT Technologies
SOLCOM
Shikokutsuken
MIRAITMIRAIT Technologies

NTT DOCOMO, INC.

44,167TTK
SOLCOM
Shikokutsuken- 24 -

(Segment information for impairment of non-current assets)
Fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)
Omitted due to immateriality.
Fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)
Omitted due to immateriality.
(Segment information for amortized and outstanding amounts of goodwill)
Fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)(million yen)
MIRAIT(Goodwill)
Amortized amount
Balance at end ofcurrent period

Reportable segment
MIRAITTTKSOLCOM
Technologies Lantrovision

Shikokutsuken

Total

199

44

120

11

－

24

399

404

139

2,062

156

－

456

3,220

Corporate andelimination

OthersTotal(Goodwill)
Amortized amount
Balance at end ofcurrent period

－

－

399

－

－

3,220

Fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(million yen)
Reportable segment
MIRAIT(Goodwill)
Amortized amount
Balance at end ofcurrent period

MIRAIT
Lantrovision
Technologies

TTK

SOLCOM

Shikokutsuken

Total

209

42

118

33

－

96

499

396

96

1,944

123

－

360

2,921

Corporate andelimination

OthersTotal(Goodwill)
Amortized amount
Balance at end ofcurrent period

－

－

499

－

－

2,921

(Segment information on gain on negative goodwill)
Fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)
TTK Co., Ltd. was made a wholly-owned subsidiary by way of share exchange. Therefore, negative goodwillof 812 million yen has been accounted for in the “TTK” segment.
SOLCOM Co., Ltd. was made a wholly-owned subsidiary of the Company by way of share exchange.
Therefore, negative goodwill of 8,145 million yen has been accounted for in the “SOLCOM” segment.
Fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)
Not applicable.

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(Per share information)
Fiscal year ended March 31, 2019 Fiscal year ended March 31, 2020
(April 1, 2018 to March 31, 2019) (April 1, 2019 to March 31, 2020)
Net assets per share

1,933.82 yen

2,006.42 yen

Net income per share

295.34 yen

149.93 yen

Diluted net income per share

259.19 yen－ yen(Note) The basis for calculating net income per share and diluted net income per share is as follows:

Fiscal year ended March 31, 2019 Fiscal year ended March 31, 2020
(April 1, 2018 to March 31, 2019) (April 1, 2019 to March 31, 2020)
Net income per share
Net income attributable to owners ofparent (million yen)
Net income not attributable to commonshareholders (million yen)
Net income attributable to owners ofparent attributable to common stock(million yen)
Average number of outstanding shares ofcommon stock during the fiscal year
(thousand shares)

Diluted net income per share
Net income attributable to owners ofparent (million yen)(of which, interest paid to bondholders (aftertax)) (million yen)
Increase in common stock (number ofshares)(of which, convertible bonds (number ofshares))Dilutive shares not included in thecalculation of diluted net income per sharegiven their non-dilutive nature

25,711

15,220－－25,711

15,22087,057

101,517259.19

－

(11)

－

(11)

－

12,098,548－(12,098,548)

－

－

－

(Note) 1. Diluted net income per share for the consolidated fiscal year under review is not stated because there are no dilutive shares
outstanding.
2. In calculating net income per share and diluted net income per share, treasury shares held in trust accounted for inshareholder’s equity are included in the number of own shares which is deducted from the average number of outstanding
shares of common stock for the fiscal year. For the fiscal year ended March 31, 2020, the average number of own shares
outstanding deducted for the purposes of calculating net income per share and diluted net income per share was 369,494. The
average number of own shares at the end of the fiscal year ended March 31, 2019 was 335,482.

(Significant subsequent events)
Not applicable.

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