Financial Results
Presentation for
Q2 FYE 3/2021
November 16, 2020MIRAIT Holdings Corporation

Today’s Agenda
Ⅰ

Financial Results for FYE 3/2021
１ Q2 Financial Results
２ Revised Forecast
３ Topics

Ⅱ

Management Initiatives for the Future（Note）”Net income attributable to owners of parent” is referred to as “net income” in this presentation.

1

Presenters
Main
Speaker

Toshiki Nakayama（President and CEO）
Masakazu Tsukamoto（Director and CFO）

Koji Aoyama（Director and General Manager of Strategy）

Akio Kaji（Project Leader of NTT-Business）

Noriyuki Nagamatsu（Project Leader of Mobile-Business）

Yoichiro Takaya（Project Leader of Solutions-Business）
2

Financial Results

Net sales

182.9191.7

Increase for5consecutive years（bil. yen）(+8.8 bil. yen yoy)

Record-high sales

Q2

Q2

Q2

Q2

Q2

FYE3/17

FYE3/18

FYE3/19

FYE3/20

FYE3/214Operating income
6.7（bil. yen）

4.9+1.8bil. yen
Record-high profits

Q2

Q2

Q2

Q2

Q2

FYE3/17

FYE3/18

FYE3/19

FYE3/20

FYE3/215

Operating income
Gross profit
margin+0.5p(bil. yen)

SG&A
Increase innet sales+0.90.06.7+0.94.9Q2FYE3/20

6.7bil. yen（+1.8 bil. yen yoy)

SG&A ratio(0.3p)○Merger synergies○Improved profitability○Further operational efficiency▲Delays in projects
Q2FYE3/21○Positive factor▲Negative factor

6

NTT BusinessNet sales

68.3 bil. yen(+2.6 bil. yen yoy)

○Facility management○Access work

○Positive factor▲Negative factor

7

Multi-carrier BusinessNet sales

39.8 bil. yen(+1.1 bil. yen yoy)○Work for Rakuten
across Japan○CATV work
▲Delays in projects○Positive factor▲Negative factor

8

Environmental & SocialInnovation BusinessNet sales

25.8 bil. yen(-0.7 bil yen yoy)○Air conditioning/water utility work
▲Mega-solar○Positive factor▲Negative factor

9

ICT Solutions BusinessNet sales

57.7 bil. yen(+5.8 bil. yen yoy)
○Domestic LAN/ Wi-Fi○Goods sales○Software▲Lantrovision○Positive factor▲Negative factor

10Net income
4.73.3（bil. yen）

+1.4bil. yen
Record-high profits
also at the net
income level

Q2

Q2

Q2

Q2

Q2

FYE3/17

FYE3/18

FYE3/19

FYE3/20

FYE3/2111

Revised Forecast for
FYE 3/2021

Revised forecast (FYE 3/2021)
Orders received
Net sales
Operating income
Net income

Orders received

Net sales
Operating income
Net income

430.0 bil. yen
435.0 bil. yen
22.0 bil. yen
15.5 bil. yen

450.0 bil. yen(+20.0 bil. yen)445.0 bil. yen(+10.0 bil. yen)23.0 bil. yen(+1.0 bil. yen)
16.0 bil. yen(+0.5 bil. yen)13

Orders received(bil. yen)
■ ICT
■ Environmental & Social■ Multi-carrier
■ ＮＴＴ

430.0

450.0

122.0 133.0
61.0

59.0

98.0

102.0

149.0 156.0
FYE 3/18

FYE 3/19

FYE 3/20

FYE 3/21

FYE 3/21

Initial

Revised

Forecast

Forecastvs.
initial forecast+20.0bil.yen
14Net sales(bil. yen)435.0 445.0■ ICT■ Environmental & Social■ Multi-carrier■ ＮＴＴ

123.0 131.0

61.0

59.0

99.0

100.0

152.0 155.0

FYE 3/18

FYE 3/19

FYE 3/20

FYE 3/21

FYE 3/21

Initial

Revised

Forecast

Forecastvs.
initial forecast+10.0bil.yen
15

Operating income(bil. yen)

22.0

23.0

vs.
initial forecast
H2+1.0bil.yen

H1
FYE 3/18

FYE 3/19

FYE 3/20

FYE 3/21

FYE 3/21

Initial

Revised

Forecast

Forecast
16Dividend
45(yen)4022.5
20Year-end
20Interim

22.5

FYE 3/17 FYE 3/18 FYE 3/19 FYE 3/20 FYE 3/21
Forecast
Dividend
payout ratio

37.6%

24.1%

※ 23.6%

26.7%

30.3%

Dividend per share

40 yen45yen(+5 yen)※Total shareholder return for FYE 3/2019 excludes impact of negative goodwill from mergers.

＜Reference＞
Share
repurchase

2.5
bil.yen――

10.4
bil.yenundecided

17

Topics

Developing multi-skilled engineers
Combining Fixed and Mobile Communication WorkHeight training

Kobe “Hyper Techno Port”

Installing antennas

Ichikawa Training Center
19

Local 5G (1) : Solution to build wireless areas
Comprehensive support to companies adopting local 5G○Area improvement solutions using reflective boards.

Metamaterial reflective board

Improved area
Wall
Base station

Scheduled launch of “5G Labo”(MIRAIT Shin-Kiba Building)20

Local 5G (2) : 5G Golf
Hosted next-generation 5G golf event

8K broadcasting

8K

Landing spot forecasting

Viewing of 3D maps using VR

21

DX ： Electronic Shelf Tag System
More than 100,000 tags can be updated simultaneously

Server forelectronic
shelf tagPricecoordination
EC website

Electronic
shelf tag GW

22

EV Charger Installment
One of top Japanese companies in terms of track record for
EV charger installment work
○EV charger installation in NTT station parking lots
NTT Station

Repairs, remote monitoring

Operation check
EVs

Utility poles

After installation

23

Precautionary Statement
Statements and quotes relevant to the forecasted values in thishandout are the future prospects based on the plans and prospects of
the Company at this point in time.
The actual business results could be significantly different from thosestated in this handout due to changes in conditions.
As such, please be advised that we will not be able to guarantee theaccuracy of the forecasted values, in this handout and the session,over the period of time to come in the future.

MIRAIT Holdings Corporation24

Management Initiatives
for the Future
November 12, 2020

History of the MIRAIT Group
10 years
ago…
10/2010: Integrationof 3 companies

FY2010No. ofEmployees

7,200

Sales

246.6 bil. yen

Operating
Income(ratio)

4.9 bil. yen(2.0%)NEWMIRAIT HoldingsCorporation

6/2016: Expansion ofglobal business

12,600FY2016FY2012

8,700

441.1 bil. yen

283.2 bil. yen

21.9 bil. yen(5.0％)

10.0 bil. yen(3.5％)MIRAIT Holdings
Corporation

7,400
271.0 bil. yen
10.8 bil. yen(4.0％)MIRAIT Holdings
Corporation

MIRAIT Corp.

MIRAIT Holdings
Corporation

MIRAIT
Technologies Corp.

MIRAIT Corp.

NEWMIRAIT
Technologies Corp.

Lantrovision(S)LtdNEWMIRAIT Corp.
NEW

Commuture Corp.

FY201910/2012:Business restructuring

Daimei Telecom
Engineering Corp.
Todentsu Corp

10/2018, 1/2019: Integrationof 3 companies

MIRAIT
Technologies Corp.

NEW

6/2016

Lantrovision(S)LtdTTK Co., Ltd.

10/2018

SOLCOM Co.,Ltd.

1/2019NEW Shikokutsuken
Co., Ltd.

1/2019NEW26

Business Environment■ Carriers’ shift to service solutions
business■ Decrease in carriers’ capex（Capital investments by telecom carriers）(Operating income structure at telecom carriers)(unit: bil. yen)

850.0

Ａ Co.

Ａ

Co.

(unit: trn. yen)

4.8

710.0
600.0

Ｂ Co.

4.6

4.4

Service/solutions■ device

420.0

400.0

■ other

280.0

400.0

370.0

Ｃ Co.
‘02～‘0702～07‘08～‘1308～13■ mobile

280.0‘14～‘1914～19※rounded to the nearest 10 bil. yen■ Lack of labor in construction industry(Job-to-seekers ratio)※Average for each period‘08～‘1308～13‘02～‘0702～07

4.86‘14～‘1914～19※rounded to the nearest 100 bil. yen<Source> ※1 Recruit Co. 36th WORKS survey on job-to-seekers ratio for new graduates(2020) (referred 7/6/20) https://www.works-i.com/surveys/adoption/graduate.html※2※3 MHLW General occupational data (employment security statistics)(referred 7/6/2020) https://www.mhlw.go.jp/toukei/list/114-1.html

5.70

8.39

Construction industry※1（University graduates）

1.22
0.76
‘00～‘0600～06

1.18
0.75
‘07～‘1307～13

2.11
1.41
‘14～‘1914～19

New jobs-to-seekers ratio※2

Job-to-seekers ratio※327Transforming the Business Structure
ＢＡ
Solutions and other

Improving profitability

new domains as coreof existing businessbusinesses

with carriers“With COVID-19”

ＣStrengthening
the management base・ Group management

・ Brand・ HR・ Safety/quality

・ IT systems

28

Transforming the Business Structure”Super Telecommunications
Construction Company”
Solutions/ new(frontier)businesses
Ｂ Market
Private and public
sector entities
Direct/ channel sales

Telecom carrier businessTelecomcarriers

FY2013

FY2019FY2022～29

Transforming the Business Structure
Expanding into New Business Domains(Frontier Businesses)

IoT/5G

Strengths of theMIRAIT Group

EnergyManagement“Front line capabilities”(EMS)“Established telecom/ electricalconstruction company”

SmartCities“X”s unique tothe MIRAIT Group

GlobalEngineering(Civil Engineering)30

Transforming the Business Structure
Expanding into New Business Domains(Frontier Businesses)
5G×IoT

Building energy
management systems

Strengths of the
MIRAIT Group●IoT/5G

Datacenter in Osaka

EnergyVPPManagement“Front line capabilities”(EMS)Drones“Established telecom/ electricalconstruction company”

SmartCities“X”s unique tothe MIRAIT Group(Civil Engineering)
Maintenance/management ofwater utility infrastructure

Digitalization/visualization ofunderground infrastructure

Lantrovision(S)Ltd

Asia: 13 countries
28 cities

GlobalEngineering

Datacenter business(cabling, etc.)
Telecommunication
tower sharing service
31

Strive to remain a trusted Group thatcreates and protects social(telecommunication and energy)
infrastructure into the future

ＳＤＧｓ
SustainableDevelopmentGoals

Business

Company withgrowthmomentum

Quality Company
Quality Work

Employees

Company withoutstanding work
environment

ＥＳＧ
Environment
SocialGovernancePartners

Partner company ofchoice32

MIRAIT HD/ MIRAIT/ MIRAIT Technologies－Accelerating the transformation of the business structure－

Restructuring

STEP１▶▶▶ Solutions/new(frontier) businesses

FY2021
Current

Launch “ONE TEAM” structure

2021

2022

“ONE TEAM”

MergerＭＲＴ

ＨＤＭＴＣ

New (frontier)businesses

ＨＤSolutions businessＭＲＴ

New Company

ＭＴＣ
34

Restructuring

STEP２▶▶▶ MIRAIT HD/ MIRAIT/ MIRAIT Technologies

FY2022Merger of three companies

Current

2021

2022

“ONE TEAM”

Merger

ＭＲＴＨＤＭＴＣ

New (frontier)businesses

ＨＤSolutions businessＭＲＴNew CompanyＭＴＣ
35

Restructuring

STEP２

Outline of Merger of Three Companies
Timing▶ Early FY2022

Scheme▶ Absorption-type merger with MIRAIT HD as surviving company

Resolution of a shareholders’ meeting needed, as this will be
subject to a revision to the Articles of Incorporation36

Objective of Restructuring/Merger of Three Companies
Accelerating the transformation ofthe business structure
Building the solutions/ new (frontier) businesses as core businesses▶ Launch “ONE TEAM” structure (FY2021)

Strengthen profitability of existing businesses(fixed/mobile communication work)▶ Thorough efforts to achieve efficiency/ maximize profits

Strengthen management base
▶ Consolidate back office/ administrative functions to cut costs
37

Building and Maintaining a Bridge to the FuturePrecautionary Statement
Statements and quotes relevant to the forecasted values in thishandout are the future prospects based on the plans and prospects of
the Company at this point in time.
The actual business results could be significantly different from thosestated in this handout due to changes in conditions.
As such, please be advised that we will not be able to guarantee theaccuracy of the forecasted values, in this handout and the session,over the period of time to come in the future.

MIRAIT Holdings Corporation39