The Power to
Build Tomorrow.

Full-Value
Model
Integrated report 202 3

MIR AIT ONE Corporation

Contents
Values & Vision
Contents and Editorial Policy

02

Brand Statement

03

Purpose/Mission/Vision

04

President’s Message

09

Roadmap for Realizing the Future Vision

Value Creation Strategy

Scope of Organization in this Report
This report basically covers the entire MIRAIT ONE Group. Please notethat numerical data and some of the information presented in this report are based on the information available up to this point, as specified within the text or supplementary notices.

Business of MIRAIT ONE

13

Value Creation Process of MIRAIT ONE

15

Evolution of Medium-term Management Plan
and Long-term Vision

17

Close Interlocking of Materiality and Growth Strategy

19

Business Strategies

21

Reporting Period
FY 2022 (April 1, 2022 to March 31, 2023)

Acceleration of Business Growth and Transformation
through Human Resource Development

Note: This report contains some data outside the above period so far as it complies with theeditorial policy.

23

Human Resource Strategy

29

Digital Strategy

31

Financial/Assets Strategy

Promoting ESG-oriented Management

34

Building and Maintaining an EnvironmentallyFriendly Society

		 For Preservation of the Global Environment
39

Building and Maintaining a Safe, Secure,and Prosperous Society

		 Realizing a Safe and Secure Society
Dialogue with Stakeholders
Building and Maintaining a Culture Where
People Respect the Diversity of Human
Resources and Learn from Each Other

		 Respect for Human Rights

Corporate Governance
43

Building and Maintaining a Fair and Transparent
Corporate Group		 Messages from Outside Directors
		 Enhancing Corporate Governance		 Thorough Compliance
		 Board Members

Data
54

Highlights in 11-year Financial Management

56

Highlights in 5-year Non-financial Management

57

Company Information/Stock Information

58

Concept of the Corporate Brand Name

Not because we dreamed it, but because we kept looking
and discovered ways to give it shape.
Our engineering technology, cultivated through infrastructure,
has the power to implement a bright future.

Precautions on Future Prospect, etc.
Descriptions in this report about the business performance and financial status of the MIRAIT ONE Group, the prospect and objectives ofoverall business activities, future plans and other details are basedon the plan and prospect made from the information available for us
at the time of editing. The actual performance may differ significantly
from those described in this report due to changes in circumstances.
Therefore, please understand that the accuracy of the prospects andother information in this report is not guaranteed for the future.

It’s time to use this power to benefit society and build an ideal tomorrow.
We will contribute to the transformation of society more dynamically than ever,
implementing our technologies in multiple fields
from communications and disaster prevention
to education and urban development.

Inquiries
Public Relations Department, Corporate Strategy Division,
MIRAIT ONE Corporation
5-6-36, Toyosu, Koto-ku, Tokyo, Japan 135-8111
TEL: +81-3-6807-3120
Related Information on Our Website■ Corporate Information
https://www.mirait-one.com/english/corporate/■ Services and Solutions
https://www.mirait-one.com/solution/ (Japanese version only)■ IR Information
https://ir.mirait-one.com/en/■ ESG Information
https://www.mirait-one.com/english/esg/

The Power
to Build Tomorrow.

Data

		 Thorough Risk Managementof dreams in books, movies and manga.

Corporate Governance

42

Date of Publication
November 2023

As humans, we have nearly achieved the future
Sustainability Management

33

Guidelines Referenced“International Integrated Reporting Framework” issued by IFRS (International Financial Reporting Standards Foundation)“Sustainability Reporting Standard” issued by GRI(Global Reporting Initiative)“Guidance for Integrated Corporate Disclosure andCompany-Investor Dialogue for Collaborative Value
Creation 2.0” issued by METI (Ministry of Economy,
Trade and Industry)

Value Creation Strategy

11

Sustainability Management

Values & Vision

01

Editorial Policy
This paper reports on the short-term, mid-term, and long-term value
creation efforts and results of the MIRAIT ONE Group, which is committed to business reform and social contribution. The report focuseson the MIRAIT ONE Group Vision 2030 starting from FY 2022 and the
5th Medium-term Management Plan, with an emphasis on sustainability efforts and materiality, with concise and comprehensive reporting on the five sections: “Values & Vision,” “Value Creation Strategy,”“Sustainability Management,” “Corporate Governance,” and “Data.”

We envision a t hriving fut ure because
we are able to bring implementation into every aspect of life and business.

(note: previous reports are also available)

01 MIRAIT ONE Corporation

Integrated report 2023

02

Purpose/Mission/Vision

President’s Message

PurposeCo-creating an exciting future through challenges and technology.
Values & Vision

MissionValue Creation Strategy

Meeting customer expectations and contributing to realize a prosperous society
Constantly refining our technology and business model to add more value
Building and maintaining future social infrastructure with our partners
Creating an attractive corporate culture with a diverse and dynamic workforce

President and CEO

NAKAYAMA Toshiki

Continuing to be a trusted company through improved sustainability and strict compliance

Sustainability Management

MIRAIT ONE Group Vision 2030

Accelerating business reform with business growthcentered on human resource development

New growth strategy: Five business transformations (Five changes)
People-centric management

Change 2

Acceleration of business growth

Change 3

Top-class profitability

Change 4

Management based on data insights

Change 5Strong foundation for ESG management“Human Resources,” our most important management
resource
The MIRAIT ONE Group is driving business growth and transformation through human resource development that emphasizes “People-centric management,” Change 1 of its growthstrategy known as the “Five Changes.” Since its establishment
in 1946, the Group has grown in the “telecommunications construction market,” where revenues can only be generated by
the intelligence and skill of each individual worker on the site.
We are currently in the process of restructuring our businessin response to the ongoing market contraction, but “humanresources” continue to be the most important management
resource in our envisioned future of going “Beyond a Telecommunications Construction Company” and the “Full-Value
Model” we are pursuing. We will continue our efforts to drive
sustainable growth and increase corporate value, with “People-centric management” as a fundamental cornerstone.
In this message, I have shared my candid views on “investment in human capital” and “growth strategies,” which are at
the core of Group’s “People-centric management,” incorporating insights I have gained through my daily dialogue with ourshareholders, investors, and other stakeholders. The aim is todeepen our future engagement with all parties concerned.

A Lookback on the First Year of
Medium-Term Management Plan
Ratio of “MIRAI (future) domains” and “non-telecommunication business,” the future growth areas, increased
steadily despite higher revenue and lower operating
incomeThese financial results mark the first full-year performance report for MIRAIT ONE Corporation, which was formed by themerger of three companies*1 in July 2022. FY 2022, whichmarks the beginning of the “MIRAIT ONE Group Vision 2030”
and the “Fifth Medium-Term Management Plan,” was a difficult year financially. Net sales increased 2.9% year on year to483.987 billion yen, but operating income fell 33.5% to 21.803
billion yen, and the operating income ratio also dropped 2.5
percentage points to 4.5%.
This can be attributed primarily to the contribution of SEIBUCONSTRUCTION, which became a Group company in March
2022, to full-year net sales, resulting in a substantial increasein the environmental and social innovation business. Other factors include a change in the sales composition due to a dropin the sales of goods related to telecommunications equipment and the mobile business, a reactionary decline in the advanced wireless environment improvement business from theprevious year, and an increase in branding and other expenses
Integrated report 2023

Data

03 MIRAIT ONE Corporation

People-centric Management

Corporate Governance

Change 1

04

President’s Message

Launch of
MIRAIT ONE

Net Sales in Corporate/Environmental and Social Infrastructure domain (left axis)
Net Sales in Telecommunications infrastructure domain (left axis)
Operating income (right axis)(Unit: billion yen)

Consolidationof SEIBUCONSTRUCTION

500

30

250

55%

20

28%
Profit decline due tounprofitable projects

72%

2010

⇒ Tightened criteria forreceiving orders⇒ Tightened management of projects
2011

2012

2013

2014

51%

Integration of regional
telecommunication
construction companies
2015

2016

2017

2018

2019

2020

2021

2022

45%

2023
(forecast)

Recognition of Business Environment
Short-term: Demand for “urban and regional development” and “DX/GX” that emerged after COVID-19
The “expansion of global risks,” including climate change and

05 MIRAIT ONE Corporation

geopolitical risks, and the “global expansion of ESG/SDGs/
sustainability initiatives,” highlighted in last year's Integrated
Report, persist as an ongoing megatrend that remains irreversible. Despite sporadic anti-ESG movements observed in
the aftermath of the Ukraine crisis, the overall trends continue. In addition, as the COVID-19 pandemic winds down, thedemand for “urban and regional development” and “DX/GX”
from municipalities and businesses is gaining momentum as a
distinct trend that is emerging as a fundamental aspect of thebusiness environment.
In addition, major telecommunications carriers have largely
peaked their investments in the 5G fundamentals, and are expected to shift their investments to developing services on 5G
networks in the future. Each of the carriers has also launched
its own initiatives in urban development, including the DX andGX mentioned above.
As society collectively moves toward sustainability, ourGroup will embrace the growing complexity and comprehensiveness of customer needs as a key business opportunity. We
aim to achieve further revenue growth by capitalizing on ourcore strengths, including our “multi-engineering capabilities”
high-quality “field capabilities,” and carrier-grade “technical expertise,” which we have cultivated through our efforts up to theprevious medium-term management plan. We are committed
to further accelerating growth in the “MIRAI (future) domains”
by using the “Full-Value Model” to take full advantage of our“competitive and diverse business portfolio,” which includes“telecommunications,” “electrical installation,” “ICT,” “civil engineering,” and “architecture.” This comprehensive portfolio

Growth Strategy
Priority business strategy in FY 2023
Based on our recognition of the business environment in the
short-, medium- and long-term as outlined above, our Groupwill accelerate the transition to the next phase of growth bypersistently advancing the five business reforms known as“Five Changes.” As the second year of the Fifth Medium-Term
Management Plan, we have designated FY 2023 as the crucial “first year of strategically driving business growth throughhuman resource development.” We will strengthen Change 2
for “Acceleration of business growth” by advancing Change
1, “People-centric management,” and accelerate the digital transformation of the current value chain by reinforcing
Change 4, “Management based on data insights,” with theultimate goal of growth based on improving profitability in theexisting carrier business.
Change 1: “People-centric management”■ Establishing “human resource growth strategy” and■ Ensuring the practicality of “People-centricmanagement”
Following the announcement of the Five Changes, including Change 1, in May 2022, I have engaged in dialogue withshareholders and investors and received a range of comments
and recommendations. Some stakeholders have stressed theneed to implement a mechanism to ensure the practicality of
our human capital strategy. Accordingly, we are in the processof establishing a monitoring scheme that will include quantitative “visualization” of the results of Change 1.
Others noted the need to establish a higher wage structure
to promote the multi-skilling of our human resources. Management members, including myself, agree, and we are focusing
on our transition to the full-value, or high-value-added model forbusiness in the “MIRAI (future) domains” that we have designated as growth areas. In the future, we aim to realize a system thatenables human resources who have acquired high-level skills
to earn higher compensation by engaging in high value-added-projects. As part of our investment in human capital, we reviewed our compensation and wage structure in FY 2023.

Integrated report 2023

Data

*1 Merger of three companies: MIRAIT Holdings Corporation, MIRAIT Corporation and
MIRAIT Technologies Corporation

0(FY)

Corporate Governancerelated to the merger of the three companies.
On the other hand, the share of sales from the “MIRAI (future) domains” (see page 12), which were identified as future
growth areas in the “MIRAIT ONE Group Vision 2030” and the“Fifth Medium-Term Management Plan,” increased by 13 percentage points from the previous fiscal year to 29%, thanks tothe solid expansion of the global and software businesses, inaddition to the environmental and social innovation businessmentioned above. The proportion of sales from the “non-telecommunications segment,” which we have been working to
expand over the past decade, also increased by 6 percentage
points year on year to 49%.
We will continue our efforts to promote growth in bothareas as we work to achieve our FY 2026 targets, which include a “MIRAI (future) domains ratio of 40% or more” and a“non-telecommunications business ratio of 70% or more.” In
addition, to improve our operating income ratio (7.5% or morein the FY 2026 management targets), we will prioritize “improving the cost ratio in each business” and “expanding high-return growth investments” (see page 32). We are committed tomaking steady progress towards these goals.

10

Sustainability Management

0

49 %

Value Creation Strategy

Consolidation ofSingapore subsidiaryMedium- and long-term: Responding to medium- andlong-term opportunities and risks with a focus on materiality initiatives
On the other hand, from a medium- to long-term perspective,
we will continue our efforts to achieve the management target
for FY 2026 outlined in the Fifth Medium-Term Management
Plan and the future vision detailed in the “MIRAIT ONE Group Vision 2030” (see pages 9-10). We will address the medium- andlong-term opportunities and risks associated with materiality,with the goal of further enhancing sustainable corporate value.
In particular, with regard to environmental and social issues,
we will focus our attention on steadily seizing business opportunities related to decarbonization and the growing demand
for regional revitalization and smart cities. We will also focus
on developing human resources and strengthening our brandrecognition based on our commitment to safety quality, andpromote the growth of an ecosystem by building and expanding the network of co-creation partners. By promoting these
medium- and long-term efforts through our “People-centricmanagement” approach mentioned above, we will enhance
our ability to create value by fostering a broader range of ideas
and concepts. This, in turn, will enable us to develop innovative solutions to emerging societal challenges in the future. In
the area of governance, we will monitor the above-mentioned
series of initiatives and proactively reduce factors that impede
medium- and long-term growth through rigorous risk management. This strategic approach will ultimately reduce our cost ofcapital and further enhance our corporate value.

“employee-oriented work style reform” as a powerful
growth engine
In FY 2023, we have embarked on the large-scale development of a “human resource growth strategy” that includes a“flexible personnel system that supports challenges” throughinitiatives such as a job-based personnel system and thepartial introduction of an internal part-time employment system, as well as “strategic human resource development” programs, such as Mirai College. These initiatives are supported
by “employee-oriented work style reform” (MIRAIT ONE-stylework-lifestyle reform).
Many listed companies in Japan, including our own, areattaching great emphasis on human capital management.
The business model in the construction industry, including ourcompany, differs from that of manufacturers and telecommunications companies, which generate revenue by combining“people” with “state-of-the-art factories, equipment and facilities.” As mentioned earlier, in our business model, revenue isderived solely from the intelligence and skill of each individual
worker on the job site. This is why I say that our growth cannot
be realized without the development of human resources. In
addition, the health and safety of our human resources arefundamental to our operations. In short, ensuring the healthand safety of our human resources and promoting the individual growth of each member of our workforce constitute an
essential foundation for transforming our business structure
to move “Beyond a Telecommunications Construction Company.” That is why our Group has been actively promoting acomprehensive set of “human resource growth strategy” and“employee-oriented work style reforms” since FY 2023, positioning them as the driving force behind our business growthstrategy (see pages 23-28).

Values & Vision

was established by including SEIBU CONSTRUCTION as aconsolidated subsidiary. (see pages 13-14)

Business growth and portfolio reforms

06

President’s Message■ Maximizing the value of “Full-Value Model” with
precise customer targeting
On the other hand, in our dialogue with investors, some expressed concerns about the value added by the Full-Value
Model. In addition, there have been suggestions that there
may be greater benefits to customers from outsourcing these
operations to industry experts or external providers. However, our clients, primarily small and medium-sized municipalities and companies, often face resource constraints when it
comes to planning, proposing and designing projects. Thereis a growing demand for a comprehensive “Full-Value Model”
that can offer these services in a comprehensive, integrated
and one-stop manner. Our Group’s goal is to maximize thevalue that clients derive from the “Full-Value Model” by addressing the specific needs of small and medium-sized municipalities and companies.

Integrated report 2023

Data

■ Maximizing synergy with SEIBU CONSTRUCTION
The synergy generated through our collaboration with SEIBU CONSTRUCTION continues to grow in our projects thatcomprise the “Full-Value Model.” In FY 2022, we received
orders totaling 4 billion yen through joint sales efforts andreciprocal orders, as mentioned earlier. For FY 2023, wehave planned orders of 6.5 billion yen or more. In particular,
as part of a major railway group, the company’s extensive“comprehensive capabilities” and strong “brand power” as a
general contractor supporting urban infrastructure, including
railways, various structures, and recreational facilities, havesignificantly strengthened the Group’s vitality. The company’s
culture is firmly aligned with that of our Group, which is also
committed to building and maintaining urban infrastructure,
fostering a sense of unity within the MIRAIT ONE Group.
Looking ahead, we aim to receive orders of 25 billion yen
or more by FY 2026. We plan to achieve this by leveraging

Change 5: “Strong foundation for ESG management”■ Making diligent progress toward carbon neutrality witha long-term perspective
In our pursuit of ESG management to enhance corporate value, we are advancing our efforts to address materiality throughthe ESG Management Promotion Committee, which was established in 2021 (see pages 17-18, 33). In addition, we aim tosustainably enhance corporate value by closely linking materiality, growth strategy and sustainability governance. As part ofthis commitment, we introduced “greenhouse gas emissions”
as one of the key performance indicators (KPIs) in our executive compensation system in FY 2022.
In our commitment to decarbonization, we achieved SBT
certification in FY 2022, switched to renewable energy sources
for the electricity used to power our buildings, and made significant progress in converting our business fleet to electric and hybrid models. We recognize that we are making steady progress
toward our FY 2030 goal of “reducing Scope 1+2 emissions by
42% from FY 2020 levels.” However, we acknowledge the needfor a sustained, long-term effort to achieve carbon neutrality beyond this point. We are actively exploring a range of measures,with a strong expectation for the development and emergenceof new technologies in the future.
In our resource recycling initiatives, our final industrial
waste disposal rate improved in FY 2022 from the previous
year, and we are making steady progress toward our FY 2030
target. In FY 2023, we will focus on improving our system anddeveloping additional measures to further reinforce our efforts
in this area.
In addition, as of June 2023, the Chief Financial Officer(CFO) of the Finance and Accounting Division will be in chargeof the Corporate Strategy Department and the ESG Management Promotion Department. This adjustment aims to facilitate the seamless integration of ESG (non-financial) initiatives
and business growth strategy (financial) to further acceleratecross-departmental ESG management.
Our Group will continue its efforts to realize business reform and growth by promoting the various strategies describedabove, with a focus on “People-centric management.” We will
move forward by taking steps to go “Beyond a Telecommunications Construction Company” through the combined effortsof our individual employees and management team. We willcontinue to “visualize” the results and progress of our path, including new KPIs that we plan to disclose in the future, and wewill continue to deepen our dialogue with our stakeholders todeliver sustainable improvements in corporate value. We invite
you to focus on and anticipate the promising path ahead for
MIRAIT ONE Group.

Corporate Governance

Change 3 “Top-class profitability”
Change 4 “Management based on data insights”■ Improving profitability through digital transformation ofexisting business
In Change 3, “Top-class profitability,” we will continue thestructural approach*5 and operational approach*6, reported inlast year’s Integrated Report. In FY 2023, we will focus on DX
in conjunction with Change 4 “Management based on data insights” and cost reduction through on-site value chain reform.
In FY 2022, notable progress was made in “inventory/
standardization of work processes” and “development of
support systems (digitalization)” in the NTT Access business. Our goal was to standardize and digitize the tasks ofconstruction managers who support the construction site.
In FY 2023, we intend to broaden the scope of efficiency
improvements horizontally by expanding these initiatives toother areas, including mobile communications, civil engineering, and network operations. In addition, we are committed
to promoting operational consolidation and base integration
through standardization and simplification techniques basedon our structural strategy mentioned above. Our goal is toincrease the profitability of the carrier business by efficiently sharing and optimizing standardized and simplified tasks
across several Multi Carrier Businesses.
In addition to the above, as part of Change 3, we are actively pursuing cost reduction benefits from the merger of thethree companies. In FY 2022, we achieved a cost reduction
effect of 600 million yen by reviewing base allocation and consolidating teams. Looking ahead, we plan to further consolidate administrative and common departments and facilitate
the shift of human resources to growth areas to achieve cost
reductions of 1.2 billion yen in FY 2023 and 4.0 billion yen in
FY 2026. In addition, through our operational strategy focusedon steady cost reduction, we have already achieved a cost
reduction of 100 million yen in FY 2022. We intend to expand
the scope of this approach to achieve savings of 400 million
yen in FY 2023.

*3 Services designed to maintain and operate IT infrastructure, including servers andnetworks.

*6 Efficiency improvement focused on benchmarking activities based on the sharing of bestpractices among Group companies and activities centered on the “Profit Up (Improvement) Committee,” a group-wide organization

Sustainability Management

07 MIRAIT ONE Corporation*2 Community Energy Management System*4 Net Zero Energy Building (buildings that aim to achieve annual primary energy consumption balance of zero)*5 Standardization and simplification of divergent workflows among telecommunications
carriers/streamlining through DX of transactions with partners, etc., and renewal ofinternal information systems

Value Creation Strategy

Change 2: “Acceleration of business growth”■ Accelerating business transition to growth areas
based on synergy with Change 1
In Change 2, “Acceleration of Business Growth,” in conjunction
with the human resource growth strategy outlined in Change
1, our focus for FY 2023 is on improving performance and expanding the customer base within the “MIRAI (future) domains”
and “Full-Value Model.” In addition, within the existing carrierbusiness domain, we are actively seeking to expand our business prospects by venturing into adjacent and new sectors.
In terms of “expanding the green energy business,” we willcontinue to expand our voluntary construction of solar power
plants and electricity sales businesses through the “Full-Value
Model” initiated in FY 2022. From FY 2023, we will expand ourbusiness to include industrial storage plants and interconnection business. In addition, we are committed to expanding ourgreen energy initiatives to include projects beyond solar power
generation, such as hydrogen demonstration business. By promoting the advancement of these green energy initiatives in allof the Group's business organizations, we aim to achieve net
sales of more than 30 billion yen in FY 2026, which is a threefold
increase from the target value announced last year.
In the “acceleration of urban and regional development
business,” which is also part of the “MIRAI (future) domains,”
we aim to launch “Full-Value Model” projects horizontally on anational scale. These include projects such as the constructionof “AOAO Sapporo,” an urban aquarium in the center of Sapporo City, Hokkaido, to “create a vibrant town,” as reported inlast year’s Integrated Report, and the “CEMS,”*2 a collectivesynergies with the company, primarily by expanding urban
development projects within the “MIRAI (future) domains”
through joint sales and cross-selling. In addition, we aim tostrengthen our efforts in smart general contractor products
such as ZEB projects*4.
Also, we are currently implementing 52 reform initiatives,
including a long-term vision, human resources measures,
work style reforms, and information system improvements.
These efforts are aligned with our goal of creating a frameworkin which the company leads the Group as a smart generalcontractor for the expansion of large-scale projects using the“Full-Value Model.” In addition, we are actively pursuing the“Proud Future Realization Project” to further enhance the company’s distinctive strengths as a single entity.

Values & Vision

We also received inquiries from others about our readinessto provide psychological support to individual employees as
we mobilize approximately 1,000 employees to growth areas.
Recognizing the importance of this issue, our management
team, including myself, has started a nationwide tour of ouroperations to actively engage in candid conversations with ourfrontline employees. We are eager to understand their genuine
concerns and feelings about the transition to growth areas andthe challenges that must be overcome to facilitate this transformation. We are committed to incorporating their insights
into our various initiatives.

energy control/management initiative designed to guide towns
and communities toward carbon neutrality, in Namie Town,
Fukushima Prefecture. We will also focus on the developmentof sports complexes and resorts through joint undertakings
with SEIBU CONSTRUCTION, which has become a memberof the Group, with the aim of achieving net sales of 30 billion
yen in FY 2026.
Our goal for the “expansion of the carrier business domain,”which was incorporated as a new growth area in FY 2023, isto realize net sales of 25 billion yen or more in FY 2026. We
will accomplish this by leveraging the technical capabilities andexpertise cultivated in the design, maintenance, and construction of conventional carrier facilities, and by capitalizing on new
business opportunities in adjacent fields such as managed services*3, infrastructure sharing, and local 5G, as well as in innovative fields such as virtualization and cloud services.

08

MIRAIT ONE
Group
Vision 2030

Road Map & VisionRoadmap for Realizing the Future Vision
The MIRAIT ONE Group will continue to fulfill its responsibility to “create and protect” social infrastructure based on its
business reform and growth strategy. Also, we will challenge ourselves to create new values with the aim of going “Beyond a Telecommunications Construction Company,” contributing than ever to the solution of social problems throughchanges and growth of each and every individual in the Group.

FY 2010 - FY 2021

FY 2022 Launched full-scale business reform toward “Full-Value Model” with the aim of going “Beyond a Telecommunications
Construction Company”■ Executed transformation into a future implementation company, promoting total solutions from planning to design,
construction, and operation with solid strengths in “telecommunications,” “electrical installation,”“ICT,” “civil engineering,” “architecture,” and other fields.

Actual results

FY 2026

Medium-term
management plantargets

FY 2023Plan

Net sales

720 billion yen or more

Sustainability Management

FY 2022

Acceleration of “Business Growth through Human Resource Development”■ About 1,000 employees will be transferred to growth areas (MIRAI (future)
domains) by FY 2026 based on a medium-term human resources mobility plan.
■ Employee-oriented work style reform and strategic human resources
development(MIRAIT ONE-style smart work-lifestyle reform and Mirai College)■ Business transition to growth areas will be accelerated■ DX of existing business will be promoted

Value Creation Strategy

Expanded business domain and strengthened management base to establish a “comprehensive engineering andservicing company”■ Captured the growth of the mobile telecommunications market and aggressively expanded ICT businessand environmental/social innovation business■ Expanded regional business/software business/overseas business through M&A in Japan and other countries■ In ten years, net sales nearly doubled and operating income ratio improved by 4.8 point

FY 2023 -Values & Vision

Past

FutureOperating income (ratio)

Net sales

7.5%+

520 billion yen
Operating income (ratio)

Net sales

FY 2011484 billion yen(5.0%)

Operating income (ratio)

21.8 billion yen

Net sales(4.5%)

236 billion yen
Operating income (ratio)

5.2 billion yen(2.2%)

Non-telecommunication
business ratio

29%
49%

40%＋
70%＋

Data

27%

MIRAI (future)
domains ratio

35%
55%

Corporate Governance

Actual results

26 billion yen

MIRAI (future) domains ratio
Non-telecommunication business ratio

MIRAIT ONE Corporation established in 2022

MIRAIT Holdings Corporation established in 2010

1st to 4th Medium-term Management Plans

09 MIRAIT ONE Corporation

5th Medium-term Management Plan

For details of the 5th Medium-term Management Plan and MIRAIT ONE Group Vision 2030,
please refer to the “Evolution of Medium-term Management Plan and Long-term Vision” on pages 15-16.

Integrated report 2023

10

At a Glance

Of the FY 2026 sales target of 720 billion yen,
the Group will seek to increase the MIRAI (future) domains

Business of MIRAIT ONE

ratio to29%

ratio in FY 2022

“MIRAI (future) domains”• The focus of the “MIRAI (future) domains” will be primarily on the four areas:“urban and regional development/Corporate DX and GX,” green energy, softwareand global businesses, and on promoting these businesses in “full value.”● We provide comprehensive solutions

related to renewable energy, electricity/
air conditioning, social infrastructure(civil engineering/water and sewer
services), architecture/renovation, andother fields.

112 billion yen

Major services● Our services include the construction of

ICT infrastructure involving cloud/officesolutions and Wi-Fi, software, global
and sales of goods.

Percentage
of salesin FY 2022

Percentage
of salesin FY 2022

38.1

%

12.4

%

Sales breakdown
in the past two years

141.3 billion yen*
127.8 billion yen

Major services● We conduct the construction andmaintenance of fixed and mobile
telecommunications equipment for NTT
Group nationwide.

Sales breakdown
in the past two years

204.3 billion yen*
184.3 billion yen

55.6

Major customers

Major customers● Private enterprises● Local governments● Local governments

Major customers● Private enterprises

OthersOthers

2021

2022

(FY)

■Architecture/renovation■Civil engineering/water and sewer services■Electricity/air conditioning■Renewable energy, etc.

2021

2022

(FY)

■Sales of goods, others ■Software■Global ■LAN, etc. ■DC/cloud■Stockmaintenance of fixed and mobile
telecommunications equipment for NCC
nationwide.
● We also conduct business related to
CATV construction and broadcast radio
wave (television reception measures).

69.1 billion yen*59.9 billion yen

Major customers● Nippon Telegraph and Telephone East

Corporation● Nippon Telegraph and Telephone West
Corporation● NTT DOCOMO, INC
Others● We conduct the construction andSales
in the past two years

Corporate Governancebillion yen*

Major services%

Sustainability Management

Sales breakdown
in the past two years■Multi Carrier Business
Value Creation Strategy

26.4

%

Major services■NTT Business

Percentage
of salesin FY 2022

23.1

MIRAI (future) domains
ratio target
for FY 2026

Telecommunications infrastructure domain■ICT Solutions Business

Percentage
of salesin FY 2022

40% or more

• Areas that target business growth will be redefined as the

Corporate/Environmental and Social Infrastructure domain■Environmental and Social Innovation Business%or moreValues & Vision

To achieve the goals of the 5th Medium-term Management Plan, the MIRAIT ONE Group has divided its business into
“Corporate/Environmental and social Infrastructure domain,” which focuses on solutions business, and “Telecommunications infrastructure domain,” which deals with the domestic telecommunications construction business. MIRAIT ONE
Group is now launching four business areas as shown below.
By redefining growth areas as the “MIRAI (future) domains” and mobilizing
and concentrating its resources, the Group will accelerate its transition to a new Actual results for
MIRAI (future) domains
stage of growth.

40● KDDI Corporation● Softbank Corporation● Rakuten Mobile, Inc.

2021

2022

(FY)

Others

2021

2022

(FY)

■Mobile telecommunications■Fixed telecommunications

Data* The FY 2021 sales breakdowns are shown in terms of the new business domains.

11 MIRAIT ONE Corporation

Integrated report 2023

12

Value Creation Model

Value Creation Process of MIRAIT ONE

Major management capital●

Employees of MIRAIT ONE Group:

14,350Japan:12,877 Overseas:1,473

Renewable energy
Electricity/Air conditioning● Social infrastructure● Architecture/Renovation, etc.

Responding tomore complex andcomprehensive needs

Urban andregional
development

●

DX/GX

Business locations: Networks spanningoverseas countries/regions and throughout Japan●

Number of group companies:

27outside Japan●

60 in Japan●* Includes MIRAIT ONE Corporation

Horizontal integration●

Long lasting relationships with
telecommunications carriers● Expansion of a diverse customer base beyond
telecommunications carriers● Collaboration with municipalities andgovernment agencies● Member companies of MIRAIT ONE Partners
organized for co-creation among partnercompanies:

Software

Camera/Sensor

Wi-Fi/
IoT/5G

PBX
serverNW

Mobile/AccessElectrical/
Facility

Lighting/Air
conditioning

●

Solar
renewableenergyEMS

Operation●

Energy usage in FY 2022:

316,510 MWh

including renewable energy used:

5,749 MWh

Goal

Contributing to a resilientand sustainable future
for the regions/companies

Architecture

Corporate Activities
Financial/Assets Strategy

50% level

Implemented for total shareholder return ratio at
Lower cost of capital through leverage● Investment for growth to improve return on capital●

Maintenance

Gross assets:

Natural Capital

Global businesses

Nine materialities ➡P17-18
Medium- and long-term opportunities and risks ➡P17-18
Corporate GovernanceImpact on Environment and Society(Positive aspects)● Social contribution activities with biodiversity awareness● Accidents resulting in serious injury or serious facility damage:● Diversity: Ratio of women in management positions:% (MIRAIT ONE Corporation only)● % of personnel with multiple qualifications:% (MIRAIT ONE Corporation only)(Negative aspects)● GHG emissions:
Scope 1: 65,166(t-CO2)
Scope 2: 19,754(t-CO2)
Scope 3: 2,222,900(t-CO2e)

3.6

25.6

Consolidated net sales:

zero

Data

●

436.7 billion yen
Net Assets: 254.3 billion yen
Interest bearing debt: 61.1 billion yen

Software business

Construction and maintenanceof fixed and mobile telecommunications
equipment for NCC/CATV construction/
television reception measures, etc.

●

455

Financial Capital

Civilengineering

Co-creating an exciting future
through challenges
and technology

Construction and maintenanceof fixed and mobile
telecommunications equipment
for NTT Group, etc.

■Multi Carrier Business

Construction

Multi-engineering

Purpose

Corporate GovernanceSocial and Relationship Capital●Green energy business*

ICT service infrastructure and core systems● Construction equipment (aerial work platform vehicles, etc.)●

Construction of ICT infrastructure● Software business● Global businesses● Sale of goods, etc.

■NTT business

14●

Urban and regional
development /Corporate DX and GX■ICT Solutions Business

ProposalDesignEngineering Capital

MIRAI (future) domains

Sustainability Management

Extensive multi-engineering experience andbroad technology base acquired through M&A● Advantages in management resources andtechnical expertise in ICT● Skills associated with power storage
plants/smart grid/smart city●●

Intellectual Capital●■Environmental and Social Innovation Business

Planning

From planning and proposal tooperation and maintenanceContinuous Improvementof Company ValueBusiness Activities

Value Creation Strategy●

The business model “Full-Value Model”
Vertical integration

Human CapitalIn future, we will continue to expand the “MIRAI (future) domains” through the development of the “Full-Value Model,”while refining the management resources we have cultivated since our establishment based on our recognition of
medium- and long-term opportunities and risks in recognition of materiality (see pages 17-18). Our ultimate goal is tofulfill our mission to “contribute to a future of resilient and sustainable community and business,” thereby fulfilling our
purpose (meaning of existence) and enhancing sustainable growth in corporate value.
Values & Vision

As sustainability efforts for the global environment and human species expand across the world, customer needs are
shifting to complex/comprehensive themes such as “urban and regional development” and “DX/GX.” To respond to thistrend, we are focusing on the “Full-Value Model,” which simultaneously promotes “horizontal integration” that comprehensively combines various technical fields such as telecommunications, electric construction, ICT, civil engineering,
and architecture, and “vertical integration” that provides seamless services from planning and proposition to operationand maintenance.

484 billion yen
MIRAI (future) domains ratio:29%* Figures are as of FY 2022 or March 31, 2023, unless otherwise noted.

13 MIRAIT ONE Corporation

Integrated report 2023

14

MIRAIT ONE Group Vision 2030

Mid-term Management Plans and Long-term Vision

Evolution of Medium-term Management Plan
and Long-term Vision
With MIRAIT ONE Group Vision 2030, the MIRAIT ONE Group focuses on five business reforms, “Five Changes,” asthe new growth strategy for going “Beyond a Telecommunications Construction Company.” The Group aims to grow in
the next 10 years by conducting business along the Full-Value Model, enhancing the comprehensive engineering andservicing capabilities that have been cultivated based on the 4th Medium-term Management Plan ending in FY 2021.

SocialGovernance

Change �

People-centricmanagement

New Growth Strategy“Five Changes”

Acceleration ofbusiness growth

Change �Top-class profitability

Change �Management based on data insights
Change �Strong foundation for
ESG management■ Maximize the management resources that have expanded by the business merger in a business environment undergoing

major changes, such as the transformation of the business model of telecommunications carriers that are our customers, theanticipation of new services to be provided based on 5G, the growing demand for new solutions for the coming era of fullfledged IoT, and the acceleration of the reconstruction of social infrastructure toward 2020.
■ Aim for further growth by accelerating the transformation of business structure centered on “comprehensive engineering andservicing” and by maximizing the synergy of business mergers.

Key initiatives

15 MIRAIT ONE Corporation

efficiency improvement achieved by the integration of three companies■ Improve efficiency through the fundamental revision of opera-

tions and utilization of data insights■ Review existing operations and costs by promoting group coordination

Change 4: Management based on data insights■ Establish knowledge-based data environment and optimize

Change 2: Acceleration of business growthsales approach (aggressive DX)■ Clearly redefine growth areas as the MIRAI (future) domains■ Execute value chain reform and smart construction, and utilize

and inject resources (promote business structure reform for a
Full-Value Model)- Promote urban and regional development business (regional
revitalization business), Corporate DX, and green operations- Strengthen green energy business that contributes to decarbonization- Strengthen software business that contributes to customers’ DX- Strengthen global businesses that promote overseas data
center- related and infrastructure sharing business■ Strengthen the customer base of existing business (response to
the expansion and growth of customers)

BPO/RPA/robotics (defensive DX)■ Develop experts and core human resources and improve com-

panywide literacy (development of talent for DX)

Change 5: Strong foundation for ESG management■ Initiatives aimed at the achievement of greenhouse gas reduc-tion targets (science-based targets)■ Co-creation of social value through the MIRAIT ONE Partner Association■ Strengthen the audit function by enhancing the audit systemand the three-lines of defense■ Strengthen corporate governance through a new Group man-

FY 2019

FY 2020

FY 2021

Difference from target

441.1 billion yen
21.9 billion yen
5.0%
7.4%

463.7 billion yen
30.1 billion yen
6.5%
11.0%

470.3 billion yen
32.8 billion yen
7.0%
10.7%

+20.3 billion yen+5.8 billion yen
+1.0P
+2.7P

5th Medium-term Management Plan (2022-2026)
Financial Targets
FY 2022 results
Net sales

FY 2023 plan

Management targets of FY 2026

484.0 billion yen

520 billion yen

720 billion yen or more

MIRAI (future) domains ratio*

29%

35%

40% or more

Operating income (ratio)

21.8 billion yen (4.5%)

26 billion yen (5.0%)

Operating income ratio 7.5% or more

ROE

6.0%

—

10% or more

EPS

151.20 yen

190.79 yen

Annual growth rate of 10% or more

* Ratio of MIRAI (future) domain in net sales■ Further strengthening of shareholder returns• Implemented for total shareholder return ratio at 50% level- Stable dividend growth and flexible share buyback• Consider the retirement of treasury stock that has no intended use

Non-ﬁnancial Targets■ Enhance investment for growth• Free cash flow after shareholder returns is allocated with a priority to growth investments• Utilize liabilities based on the assumption that the external credit
rating of [A] will be maintained

Environment
Decarbonization

Percentage reduction ofgreenhouse gas emissions

Resource recycling

Industrial waste final disposal ratio

Scope 1+2

42% down (FY 2030) compared to FY 2020

Scope 325% down (FY 2030) compared to FY 2020
1.5% or below (FY 2030)

Data■ Strengthening of the basis of human resources• Improve productivity and secure talent through work style reforms• Strengthen and revitalize human resources to support expansion
into new business domains and operational innovation■ Promotion of ESG-oriented management and safety/quality• Identify business risks and opportunities from an ESG perspective and take appropriate action• Establish the MIRAIT Group brand to meet customers’ needs forpeace of mind and reliability with “safety and quality improvement”■ Capital policy• Maintain a sound financial structure• Execute management with an awareness of the cost of capital• Acquire own shares in order to achieve an ROE of 8.0% or higher

Performance
Net sales
Operating income
Operating income ratio
ROE

force behind business reform that provides “learning” and“connection”)■ “Health and productivity management” that creates a friendly
working environment and protects the physical and mental
health of employees■ Employee-oriented “work style reform”

Corporate Governance450 billion yen ■Operating income: 27 billion yen ■Operating income ratio: 6.0 % ■ROE: 8.0 % or more

■ Generation of new business opportunities• Develop solution business by leveraging the expanded regional
coverage achieved through management integration• Challenge to capture new business opportunities beyond theframework of conventional business areas and technologies■ Acceleration of transformation of business structure• Accelerate the transition from carrier business to solution business• Promote qualitative transition in the solution business (emphasis on profit)■ Enhancement of productivity and reduction of costs throughefficient operations• Ensure smooth construction operation through closer cooperation with partner companies• Pursue system sharing and consolidation of shared operations

Change 3: Top-class proﬁtability■ Strengthen the management foundation through concentration andSustainability Management

Basic approach■Net sales:

Change 1: People-centric management■ Strategic learning and re-skilling at the Mirai College (Driving

agement system

4th Medium-term Management Plan (2019-2021)

TargetNew Growth Strategy: “Five Changes”

Value Creation Strategy

Change �

Based on the redefined Purpose (meaning of existence)/Mission (public mission), the Group aims to evolve into a company group thatwill continue to contribute to solving social problems in a broader area of social infrastructure. In order to continue to be a trusted company group that “builds and maintains” future social infrastructure, the Group is now operating under the “MIRAIT ONE Group Vision2030” as the vision for 2030 and the “5th Medium-term Management Plan,” which is the five-year plan ending in FY 2026.

Values & Vision

Environment

Important societal issues to be addressed (Materiality)

Basic approachSocialSafety and Quality

Number of accidents resulting in injury or death/number of serious facility accidents

Human resource
development% personnel with multiple qualifications■ Environment• Formulated and announced the policy on disposal of industrial
waste (July 2022)• Formulated and announced the green procurement guideline(November 2022)• Acquired the SBT certification (February 2023)

Aim for zero
50% or more (FY 2026)■ Social• Opened the Mirai College/Health and Productivity Management
Declaration/basic policy on human rights (July 2022)• MIRAIT ONE-style smart work-lifestyle declaration/Diversity &Inclusion Declaration (December 2022)• Declaration of Partnership Building (MIRAIT ONE Corporation,
March 2023)

Integrated report 2023

16

Material Issues and Growth Strategy

Medium-term, Long-term, and Continuous
Improvement of Company Value

Close Interlocking of Materiality and
Growth Strategy
To realize sustainable growth in the medium- and long-term and increase corporate value, MIRAIT ONE Group will needto capture abundant business opportunities, such as global efforts to decarbonize society, and to take measures to address various risks related to human capital and climate change. In light of these opportunities and risks, the materiality
points established in 2021 identify social problems that the Group should address, which are listed as key initiatives ofthe medium-term management plan.

MIRAIT ONE Group Vision 2030

Materiality Identiﬁcation Process

Extraction andcategorization of social
issues

Evaluate and prioritize the extracted
issues from the perspective of stakeholders’ expectations and the MIRAITONE Group’s contribution to society.

Validation andidentification
Confirm the appropriateness of thematerial issues in terms of their alignment
with the MIRAIT ONE Group’s management issues, discuss business risks andopportunities for future value creation at
the Committee, and identify the material
issues through deliberations at meetings of the Board of Directors, etc.

■ Growing needs for regional revitalization/smart city
〇 Delay in “horizontal integration” and “vertical integration”
of the Full-Value Model

Safety and quality
improvement■ Securing human resources through the pursuit of safetyfirst quality and enhancing brand power〇 Loss of confidence and business opportunities due toaccidents

Society

GovernanceCo-creation of social value
through collaboration withpartners■ Establishing and expanding the ecosystem by increasing
the number of co-creation partners〇 Reduced capacity to respond to change resulting fromlong-term fixation of partnership

Promotion of humanresource development, work
style reform, and health andproductivity management■ Resolving social problems with People-centricmanagement〇 Decrease in growth potential due to deterioration of ordamage to human capital

Respect for human rights
and promotion of diversity
and inclusion■ Increase in value creation potential with diversification ofideas and concepts〇 Malfunctioning of the value chain due to the emergenceof human rights risks

Enhancing Corporate
Governance■ Increase in business opportunities and corporate value byenhancing the soundness and transparency of management〇 Governance failure and loss of confidence due to a
decline in checking functions

Thorough Compliance■ Strengthened business processes through strict legal
compliance initiatives〇 Decrease in confidence and business opportunities due
to compliance violations

Thorough Risk
Management■ Reducing capital costs and increasing corporate value by
decreasing factors that inhibit medium- and long-term growth〇 Manifestation of risks, resulting in deteriorating businessperformance and decline in corporate value

Initiatives / Targets
for FY 2023■

Reduction of greenhouse gas emissions: 42% reduction from the FY
2020 level by FY 2030 (Scope 1+2)
25% reduction from the FY 2020 level(Scope 3)■ Promotion of green products procurement■ Reduction of industrial waste final disposal ratio: 1.5% or below by FY 2030

■ Acquisition of SBT certification■ Transition to renewable■ Transition to renewable energy for power usedin company-owned buildings: 28% completed■ Percentage of EV/HV for general-purpose
vehicles: 14% completed■ Industrial waste final disposal ratio: 3.41%

Covered SDGs

energy for power used incompany-owned buildings: 54% completed■ Percentage of EV/HV for
general-purpose vehicles:
25% completed■ Accidents resulting in serious injury or serious

facility damage: zero■

Eradication of accidents resulting inserious injury or serious facility damage: Aim for zero accidents■ Establishment of the Charter on Safety andCompliance■ Launching of “MIRAIT ONE Partners”■ Declaration of Partnership Building

Non-consolidated (MIRAIT ONE Corporation
only)■ Opening of “Mirai College”■ Percentage of personnel with multiple qualifications:■

Percentage of personnel with multiple
qualifications enabled by the promotion of the Mirai College: Target 50%
or more by FY 2026

25.6%
Non-consolidated (MIRAIT ONE Corporation only)■ Establishment of Basic Policy on Human Rights■ Health and Productivity Management Declaration■ Health and Productivity Management Outstanding
Organization 2023
Non-consolidated (MIRAIT ONE Corporation only)■ MIRAIT ONE-style smart work-lifestyle declaration■ Installation of network

cameras to expand theareas covered by on-sitemonitoring■ Review of definitions toaccelerate the acquisition of qualifications inbusiness growth areas■ Effective utilization of
Mirai College■ Promotion of MIRAIT
ONE-style smart work-life
style reform

Data

17 MIRAIT ONE Corporation

Contribution to environmentallyfriendly and resilient urban andregional development

FY 2022 results

Non-financial targets tackled as key initiativesof the 5th Medium-term Management Plan

Corporate Governance

Building and
Maintaining a Fair
and Transparent
Corporate Group■ Expansion of various business opportunities associatedwith decarbonization〇 Intensification of natural disasters, etc. (transition risk/
physical risk)

the non-financial targets and as key initiativesof the 5th Medium-termManagement Plan (2022-2026)

Sustainability Management

Building and
Maintaining a
Safe, Secure, andProsperous Society

Building and
Maintaining a
Culture Where
People Respect theDiversity of Human
Resources andLearn from Each
Other

Realization of adecarbonized society
through business activities

Environment

Drive materiality initiatives as

Perform activity evaluation and disclose
the results in the Integrated Report, etc.,
review them based on external experts,
international goals and guidelines, evaluations by evaluation organizations, etc., anduse the results to revise materiality items
and goals and improve the content of
disclosure as well as incorporate theminto business operations.

Medium- and long-term opportunities and risks■ Opportunities 〇 Risks

Materiality

Building and
Maintaining an
EnvironmentallyFriendly Society

Review

Value Creation Strategy

Extract issues based on the GRI
Standards, ISO 26000, and other majorinternational guidelines on the social
responsibility of organizations, as wellas the SDGs and evaluation items of
ESG evaluation organizations.

Prioritization

Values & Vision

Accomplish theby evolving
to a company group that continuously contributes to the solution of various social
problems in a wider area of social infrastructure.

■

Strengthen corporate governance as
a company with an Audit and Supervisory Committee■ Transition to company with an Audit andSupervisory Committee■Introduction of greenhouse gas emissions
reduction targets as KPIs for performance-based stock compensation■ Enrichment of the content

of the corporate governance report■ Thorough implementationof the Charter on Safety
and Compliance■ Monitoring by the risk
management committee

Integrated report 2023

18

Business Strategies

Corporate/Environmental andSocial Infrastructure domain

Business Strategies

Percentage
of salesin FY 2023
(Plan)

Environmental and Social Innovation Business

55%

Corporate/Environmental and Social Infrastructure domain

Civil engineering / Water supply
Electricity / Air conditioning

147.5

Renewable energy, etc.

112

Fixed telecommunications

176

1,120

2023

2022

(FY)

(Plan)(Unit: billion yen)
Sales of goods, others
SoftwareGlobal127.8

LAN etc.
DC/Cloud
Stock

140.5

Multi Carrier BusinessTelecommunications infrastructure domain

Performance Overview
In FY 2022, the Group experienced a year-on-year revenue decline of 9.2 billion yen. The
reduction was primarily due to a reactionary decline in advanced wireless environment
improvement projects for cable TV companies and a decrease in broadcast wave-related projects, despite the consistent growth in the number of 5G improvement projects.
Revenue is expected to decline in FY 2023 due to a contraction in the mobile-related
business.

1,120

(FY)

(Plan)* FY 2022 sales are presented in the new business segmentation.

Basic Policy
The Group is engaged in the construction, maintenance, and operation of primarily nonNTT Group mobile communications facilities to support mobile networks that are becoming faster and larger in capacity. More recently, the Group has been preparing to
expand its carrier business into new areas, in the same way as the NTT business. These
efforts reflect the expected completion of the 5G service area expansion.

Net sales

2023

Net sales(Unit: billion yen)

59.9
1,120

56

Data

Market Growth Prospect/Strategy, etc.
In view of the upward trend of business opportunities backed by the increasing demandfor DX, we will continue to expand the scale of business and strengthen the recruitment
and cultivation of human resources through cooperation within the Group with MIRAITONE SYSTEMS and others.

184.3

Corporate Governance

Performance Overview
Despite the solid performance of the global and software business, which comprise the“MIRAI (future) domains” in FY 2022, the Group registered a year-on-year decrease insales of 13.5 billion yen. This was due to inventory adjustments by some customers in
the goods sales business, which handles telecommunications equipment, and the impact of construction delays caused by a shortage of semiconductors and supply chain
disruptions.
Although sales of goods are projected to decline, revenue is expected to increase
in FY 2023 due to an expansion of data center-related businesses and nationwide ICT
installation and maintenance businesses, and by capitalizing on demand for DX.

Mobile telecommunications

Sustainability Management2022

Corporate/Environmental and Social Infrastructure domain

Basic Policy
With our ICT technology, we provide high-quality solutions that respond to a wide rangeof social and business issues, including introducing LAN/PBX and Wi-Fi, ensuring security, building management advancement, and promotion of operational efficiency. We
are also building and operating data centers and using drones to further expand thebreadth of these solutions. At present, we are strategically strengthening global businesses, which involve the enhancement of data centers and infrastructure sharing inother countries.

(Unit: billion yen)

Market Growth Prospect/Strategy, etc.
While NTT Group’s investment in telecommunications construction is declining, we willleverage our “field capabilities” and “carrier-grade technical expertise” cultivated in this
sector to tap growth areas. In addition, we will expand our carrier business domain,
particularly in the areas of local 5G, infrastructure sharing, virtualization, cloud services,and other related fields.

* FY 2022 sales are presented in the new business segmentation.

ICT Solutions BusinessNet sales

Performance Overview
In FY 2022, revenue recorded a year-on-year decrease of 20 billion yen. This decline
can be attributed to the completion of a basic investment cycle in 5G and a reactionary
downturn in the advanced wireless environment development business. Revenue is expected to decline in FY 2023 due to a contraction in the NTT Access business.

Performance Overview
In FY 2022, the Group’s sales increased by 56.4 billion yen year-on-year, thanks to asignificant expansion in the civil engineering, water supply and renewable energy sectors, as well as a full-year contribution in the architecture/renovation business by SEIBUCONSTRUCTION, which joined the Group in March 2022. Revenue growth is expected
to continue in FY 2023, supported by further expansion of the renewable energy andarchitecture/renovation businesses.
Market Growth Prospect/Strategy, etc.
The Group will focus on further expanding the high quality, low cost green energy business it has cultivated to date, taking advantage of the continued upward trend in the
renewable energy market supported by global decarbonization efforts. In addition, theGroup will seek to expand its industrial power storage plant and interconnection business by leveraging its long-standing expertise in telecommunications construction.

%

Telecommunications infrastructure domain

Basic Policy
The Group will conduct the construction, maintenance, and operation of the NTT Group’s
fixed and mobile telecommunications equipment, and support the dissemination of optical fiber networks and mobile networks. In the event of a disaster, the Group will assume
the role of guardian of telecommunications networks by conducting emergency recovery
and reconstruction. Although the domestic telecommunications construction market isslightly declining, we will continue to enhance the management resources and strengths
that we have cultivated by operating in this market as our core business since the earlyyears of the Group history, in order to contribute to the Group’s continuous growth.

Net sales(Unit: billion yen)
Architecture/Renovation

NTT business45

Value Creation Strategy

Basic Policy
The Group builds, maintains, and operates facilities related to solar power generation
systems, EV charging, and storage batteries, and conducts hydrogen project demonstrations to support the deployment of new energy infrastructures that contribute to thedecarbonization of society. In addition, our electrical and air conditioning work, including
utility pole removal and LED installation, water and sewage work, and road infrastructure
work, such as bridge construction, support the building of environmental and social
infrastructure through civil engineering, architecture, and renovation works by SEIBUCONSTRUCTION.

Percentage
of salesin FY 2023
(Plan)In FY 2023, the second year of the 5th Medium-term Management Plan, we will continue
to focus on expanding the “MIRAI (future) domains” as the year for “business growththrough human resource development.” Emphasis will be placed on “expanding green
energy business,” “accelerating urban and regional development,” and “expanding the
career business domain.”→ See pages 21-22

Values & Vision

In line with its sustainable business growth, the MIRAIT ONE Group will seek to expand
the customer base and the number of customers in the B2B and B2G (local governments,etc.) markets in the “Corporate/Environmental and social Infrastructure domain,” whichmerges environmental and social innovation business with the ICT Solutions Business. In
the “Telecommunications infrastructure domain,” which combines the NTT business andthe Multi Carrier Business, the Group will respond to the growth and evolving needs oftelecommunications carriers, its primary main customers.

Telecommunications
infrastructure domain

Market Growth Prospect/Strategy, etc.
After several years of continuous growth, capital investments in the mobile businessof NCC carriers are expected to level off in the future. We are also witnessing a shift incustomers’ network investments to the virtualization/software domain. In light of thesedevelopments, we will prioritize the expansion of our carrier business in areas such as
infrastructure sharing, virtualization, and cloud services, in line with the NTT business.
2022
2022

2023
(Plan)

(FY)

2023

(FY)

(Plan)* FY 2022 sales are presented in the new business segmentation.

* FY 2022 sales are presented in the new business segmentation.

19 MIRAIT ONE Corporation

Integrated report 2023

20

Business Strategies

Acceleration of Business Growth andTransformation through Human Resource
Development“Change” to business growth based on human resource development
Business growth strategy

The Group will accelerate expansion
by spreading the success of the
Full-Value Model horizontally acrossthe country. In addition, we will
use the same model to expand ourArchitecture/Renovation businesswith SEIBU CONSTRUCTION.

Strategic humanresource development

Smart work-lifestyle reform(Employee-oriented work style reform)“Start” human resource development strategies for business growth

Macro CDP*

(Business strategy)

Micro CDP

Medium-term humanresource mobility plan

1,000 or moreby 2026

Accelerate mobilization ofhuman resources to growth fields

Matching(Individual employee)

Strategic human resource
development

Human resource mobilization in growth fields

Telecommunications
infrastructure domain●

Mirai College(Re-skilling)● From self-directed
Job-oriented/
side-job system
learning to strategic
learning● System to integrate
former employees● International trainee
systemCorporate/Environmental
and Social Infrastructure domain

Fixed FC generator(construction/electricity sales)

Industrial power storage plant

EV charger

System interconnection line

2022 sales
Approx.
Secondary cell 9 billion yen(Participation ininitiatives by Fukushima
NEW Prefecture and Toyota
Motor Corporation)

Solutions business organization
Secure human resources for business expansion

Corporate/Environmental and Social Infrastructure domain

The Group will seize the opportunities presented by the evolving business and investment landscape in
the telecommunications construction
business and leverage its expertisein ICT technology to expand it as a
new business area.

Hydrogen containers
for logistics

Large-scale leisurecomplex
Resort development
Urban development

Deployment of Sapporo
Odori Aquarium model
Participation in urban developmentfrom the upstream process

Exploration of joint
business with SEIBUCONSTRUCTION

Nationwide deployment of
CEMS model in Namie Town
Deployment in other local
governments/companies

Sports complexes/resort
development

Deployment of smart
grid businessSEIBU
CONSTRUCTION

Response to the
Vision for a Digital
Garden City Nation

Deployment of Full-Value Model in career business
Full-Value Model
DesignVirtualization
Cloud

Operation
managedinfrastructure
sharing local 5G

MaintenanceConstruction
Careerequipment

New fields

Adjacent fields

System development
enabled bytelecommunications
construction company
Compliance with
NW virtualization,
i-Construction,
IOT data analysis, etc.

Utilization oflatest ICT technology

Sales in FY 2021

25 billion yen

Field expansion

MIRAIT ONE
SYSTEMS(Established in July 2022)

Consolidation ofsoftware-relatedresources
Development scale↗
Human resource hiring/training potential↗

Green energy
businessStrengthenbusiness
portfolio

Data center-related
business
Telecommunication
tower businessTelecommunications
construction
business

Singapore
Australia
Philippines
DC Cabling(Singapore)

25orbillion
yen
more

Net sales target
for FY 2026

Supports digitaltransformationof customers
and own Group

5 Strengthening of global businesses
In global businesses, the focus will
be on strengthening the businessportfolio with an emphasis on data
center-related business and telecommunication tower business, aswell as expanding new areas suchas green energy-related business.

30 billion yen

Net sales target
for FY 2026

4
5

Net sales target
for FY 2026

Expansion of Full-Value Business Model

4 Strengthening of software business
The Group aims to achieve rapidbusiness expansion by mobilizing specialized human resources from within
the Group. This strategic approach isin line with the growing significanceof software business, driven by thedevelopment of enterprise DX andinfrastructure virtualization.

30orbillion
yen
more

50 billion yen
Data

Carrier business organization

Flexible
personnel
system

PPA / EPC / O&M
Voluntary businessCorporate Governance

Increase and strengthen human resources

NEW

Hydrogen businessdemonstration

PPA (Power Purchase
Agreement)/Increase theconsumption share ofself-generated electricity

Solar power generation

3 Expansion of career business domains

MIRAIT ONE-style

Organizations that create MIRAI businesses

FY 2023
Executed by all business organizations

Sustainability Management

3

Human resource development strategy

MIRAI (future) domains

FY 2022
Executed by solutions
business organization

Value Creation Strategy

2

Reforming existing businesses with DX

Personnel system that
supports challenges

The Group aims to expand its
business through a company-widecommitment to new areas such asindustrial power storage plant andinterconnection business, in addition
to the conventional initiatives that
include voluntary solar power plant
construction and electricity sales.

Net sales target
for FY 2026

2 Acceleration of urban and regional development businessAcceleration of business transition to growth areas

People-centricmanagement

1

1 Expansion of green energy business

Values & Vision

As part of our efforts to accelerate business reform to go “Beyond a Telecommunications Construction Company,” the Group has set FY 2023 as the starting year for “business growth through human resource development.”
Specifically, the Group has launched a growth strategy that closely integrates the three pillars of “business growthstrategy by accelerating a business shift to growth fields,” “human resource development strategy that supports
our business,” and “MIRAIT ONE-style smart work-lifestyle reform.”“Accelerate” business transition to growth areas

Net sales target
for FY 2026

50 billion yen
Telecommunications
tower business(Philippines)*Career Development Program

21 MIRAIT ONE Corporation

Integrated report 2023

22

Mirai College (❶e-learning lecture, ❷drone training)❶

Human Resource Strategy❷

CHRO Message

1,000

More thanemployees
to be mobilized to growth areas by FY 2026

23 MIRAIT ONE Corporation

Non-financial targets of the 5th Medium-term Management Plan
% of personnel with multiple qualifications (FY 2026)

50 % or more

FY 2022 Results Non-consolidated (MIRAIT ONE Corporation only)

25.6 %(Number of persons in 2 or more fields: 1,126)

Strengthening “Mirai College” initiatives for individual
reskill
In July 2022, we opened “Mirai College,” an in-house university to strengthen diverse skills including “data insight utilization
skills” and “DX skills.” Also, we encourage individual workers
to “gain multiple skills,” involving “mobile,” “cloud,” “renewableenergy,” “plan suggestion” and “project management” in orderto reskill each individual, which is a precondition for shifting human resources to growth fields. The Mirai College, consisting ofreal campuses (Chiba/Saitama/Hyogo) and digital campuses,

Thorough “macro and micro CDP*4 matching” and“engagement” to create steady results
In order to ensure that our human capital policies result in steady
portfolio transformation, business growth, and corporate valueenhancement, we place the greatest importance on ensuringthat our employees can take on challenges in new fields witha sense of security and excitement by carefully communicating and reconciling the Group's human capital growth strategy(macro CDP) and our development plan (micro CDP) based on
the will of each individual human resource. As a first step toward
this goal, in FY 2023, we have begun to systematically grasp
the skills of individual human resources at present and to sharethem through a system, as well as to refine the matching process through regular 1-on-1 meetings.
*4 Career Development Program: A plan to support the career development of individual
employees from a medium- to long-term perspective

Developed “MIRAIT ONE Group Mirai Juku” as part of
the Succession Plan
Meanwhile, for the systematic development of next-generation
management executives from a medium- to long-term perspective, we established the “MIRAIT ONE Group Mirai Juku”
in July 2020. By conducting specific solutions to the Group’s
management issues, workshop and discussion-based training
programs for future management-level candidate human resources, including those from Group companies, will broaden
participants' perspectives on corporate management and enhance their ability to respond appropriately as managers. The
discussions and examinations within and among training teams
also help cultivate an internal network and a mentality of assuming responsibility for the future management of the Company's
group on their own. In FY 2023, we are in the process of fostering the third phase.
“MIRAIT ONE-style smart work-lifestyle reform” toSupport Business Growth through Human Capital Growth
Under Change 1, “People-centric management,” these seriesof human resource growth strategies will be supported by the“MIRAIT ONE-style smart work-lifestyle reform,” centered on the“20% Reform Project to Create Excitement in Each Employee.”

Achieve a “virtuous cycle” through People-centric management, leading to sustainable growth and increased
corporate value
Through the above initiatives and the various measures detailedon the next page and beyond, the Group will realize a “virtuous
cycle” through People-centric management to support business growth and portfolio transformation.
To this end, we place “company safety & health/improvement in business performance” and “employee safety & health/well-being” on the same level as the concept of People-centricmanagement, and will continue to invest in human capital, thesource of value creation, through continuous investment in a
flexible personnel system and Mirai College, thereby establishing the “MIRAIT ONE-style smart work-lifestyle” and realizing
multiskilled/highly skilled human resources/healthy lifestyles/improved quality of life for employees. This will increase employee
job satisfaction and engagement, and will enable us to expand
growth areas, improve profitability and productivity, and achieve
company growth through the active participation of diverse human resources/mobility of human resources to growth areas/
increase in DX human resources/development of highly skilledhuman resources. By continuing to turn this virtuous cycle while
reinvesting the cash generated in human capital, we will achievesustainable growth and increase corporate value.
■“Virtuous Circle” through People-centric management

1Investment in human capital• Mirai College • New personnel system• Health-oriented management measures• Increase mid-career recruitment • TV-CM

2

Establishmentof the MIRAIT ONE-stylesmart work-lifestyle

Data

Mobilize 1,000 human resources to growth areas over the
next three years
We have positioned FY 2023 as the first year of “businessgrowth through human resource growth,” and we will accelerate our “human resource system that supports challenges”
and “strategic human resource development,” aiming to mobilize more than 1,000 employees in the next three years until FY
2026 to “MIRAI (future) domains” and other growth fields.
Specifically, the Career Company*2 will promote the flow ofhuman resources into growth areas such as the Corporate/Environmental and Social Infrastructure domain, while the Solutions
Business Company*3 will strengthen the acquisition of human resources through mid-career recruitment and M&A, in addition to
the flow of human resources from the Career Business Organization, etc., for further expansion in the Corporate/Environmental
and Social Infrastructure domain and the MIRAI (future) domains.

Operating a flexible personnel system that supports
challenges
In order to ensure the mobility of human resources, it is also
important to mobilize work without organizational personnel
transfers (shifting of work content). Therefore, we operate a flexible personnel system to link individual challenges to company
growth, including partial application of a job-type system, an inhouse side job system, and strategic secondments to external
companies.
First, with regard to the job type system, we have established a system that allows partial application of the job typesystem on a project-by-project basis in order to utilize the powerof internal and external human resources with advanced andspecialized skills throughout the Group for the expansion of new
business areas such as the MIRAI (future) domains. In addition,
the in-house side job system is designed to motivate employees
to take on new challenges, for example, by reflecting in theirevaluations their work evaluations in the departments where
they work on the side. In the future, we intend to further increase
the mobility of human resources into growth fields by combining
these systems with an internal open recruitment system.
In addition, in the advanced fields related to the MIRAI (future) domains, in addition to the participation of human resourcesfrom various fields in internal projects, since there are many areas
where internal achievements are still limited, a system to foster
core human resources through strategic secondment to othercompanies, recurrent education at universities and specialized institutions, and study abroad and overseas trainee programs has
been institutionalized and put into operation in FY 2023.

Corporate Governance

Goals of the 5th Medium-Term Management Plan

*2 NTT business and Multi Carrier Business*3 Environmental and social innovation business / ICT Solutions Business

Sustainability Management*1 Reform both “work” and “lifestyle” by shortening the equivalent of 20% of conventional working hours through various efficiency improvements, DX, etc., to be used for
multi-skilling and improving quality of life.

WAKIMOTO Hiroshi

Based on the results of interviews with all Group employees, asmentioned above, the reforms, which were based on a detailed
understanding of the actual situation onsite unique to the construction industry, are designed to promote measures such as“promotion of work styles that do not depend on time and place
to accommodate diverse lifestyles,” “development of a system
for reskilling,” and “promotion of health and productivity management,” in a consistent and integrated manner.
Specifically, employees will be able to work more efficiently
by going directly to and from work sites and teleworking, etc., tocreate the equivalent of 20% of the time they used to work, anduse it to enrich their lives, including reskilling at Mirai College,childcare and nursing care, and for employees involved in largescale projects, to refresh themselves by taking “leave after projects,” etc. By providing diverse and flexible work lifestyles suited
to each workplace and individual, we aim to further enhance job
satisfaction and engagement.

Value Creation Strategy

Toward Business Growth through Human Capital Growth—Change 1: Progress in the First Year of “People-centricmanagement”
In MIRAIT ONE Group Vision 2030 and the 5th Medium-termManagement Plan, we are focusing on Change 1, “People-centric management,” as the first of five business transformations,“Five Changes,” which is our new growth strategy. In FY 2022,
the first year of the program, we sought to disseminate theconcept of “People-centric management” through dialogue between management and employees, and also listened to thethoughts, feelings, hopes, and true intentions of each and every
one of our 14,000 employees through questionnaires. This isstrongly reflected in the “HR System to Support Challenges”
and “Strategic Human Resource Development” from FY 2023,
the “MIRAIT ONE-style smart work-lifestyle declaration” andthe “Diversity & Inclusion declaration” established in December
2022, and the “20% Reform*1 Project to Create Excitement inEach and Every Employee” based on these declarations. As amechanism to strategically promote business growth throughhuman resource development, in addition to monitoring by the
Board of Directors, the Human Resource Enhancement Promotion Committee and the Work-Life Style Reform Committee,
which are attended monthly by senior management and key
business personnel, ensure timely discussions and thoroughimplementation of the PDCA cycle.

Director and Managing Executive Officer CHRO

offers courses in the three fields of “Technical Faculty (technicalskills),” “Management Faculty (management skills),” and “Social Faculty (social skills).” In FY 2022, more than 70% of all
14,000 Group employees took advantage of the courses. In FY
2023, in addition to accelerating the expansion of the program
to partner companies, the Digital Campus will be broadened to
300 courses, mainly related to “MIRAI (future) domains,” andthe Real Campus will also extend “strategic learning” for business expansion and development by enhancing facilities andequipment. Through these efforts, we will promote the development of human resources who will be responsible for both thecreation of “MIRAI (future) domains” businesses and the steady
growth of their footprints.
To raise the effectiveness of these investments in humancapital, we aim to achieve the percentage of personnel withmultiple qualifications to 50% or higher by FY 2026 as a non-financial target in our Medium-term Management Plan.

Values & Vision

Supporting business growthand portfolio transformation
through a “virtuous cycle”
of People-centric management

People-centric management

4 Company Growth• Increased Productivity• Improved profit margin• Expansion of growth fields• ESG/SDGs Promotion• Improved safety• Increase in employee
income(change 1)•

Human Resource
Management

Company Safety & Health
Improvement in businessperformance•

Health andProductivity
Management

Employee safety & healthwell-being• Multi-skilling• Highly skilled humanresources• Healthy living• Improving Quality of Life

3

Improve Job Satisfaction
and Engagement• Active role for diverse human resources• Shift of human resources to growth fields• In-house Entrepreneur• Increase in DX human resources• Development of highly skilled human resources

Integrated report 2023

24

Human Resource Strategy
Human Resource Development Measuresfor Sustainable Growth

FY 2020

2,500

244
1,408
50
40

95

103

160

277
829

304
882

■Information Technology Engineer,
IT Passport Changes in
Certifications Held

2,236

1,500

1,106

1,186

1,000

2,000

944

1,878
1,500

186
1,328
34
49

2020

2021

2022

(FY)

500

2020

2021

2022

(FY)

Training of locally-hired employees at Lantrovision (S) Ltd. (Singapore)To further improve job satisfactionand engagement
Development of a Comfortable Working Environment
The MIRAIT ONE Group has in place a compensation systemthat outperforms labor-related laws and regulations, beyond
compliance with the Labor Standards Law and other labor-related laws and regulations, to enhance employees’ job satisfaction even further. In respect of the idea of equal pay for equal
work, we ensure that non-regular employees are treated fairly
and equitably with regular employees. For instance, non-regular
employees are compensated at the same extra rate as regular
employees for special work and overtime allowances, etc., andgranted special leave and offered opportunities for promotion toregular employees.
■System that outperforms labor-related laws and regulations• Regular working hours (per week, per day)

* Until FY 2021: MIRAIT Corporation, MIRAIT Technologies Corporation, TTK Co., Ltd.,SOLCOM Co., Ltd., and Shikokutsuken Co., Ltd.
FY 2022: MIRAIT ONE Corporation, TTK Co., Ltd., SOLCOM Co., Ltd., Shikokutsuken
Co., Ltd., SEIBU CONSTRUCTION CO.,LTD., and MIRAIT ONE SYSTEMS Corporation• Break time and days off

Mentoring Program
We have a mentoring program in place for new employees.
Under this program, a senior employee is appointed as the

Optimization of Overtime Work and Encouraging Employees to Take their Annual Leave
Our goal is to create a worksite environment where employees

25 MIRAIT ONE Corporation• Number of days of annual paid leave granted by the year of employment• Extra pay for overtime, holidays, and late nights, etc.

MIRAIT ONE SYSTEMS was selected as one of the “Top100 Telework Pioneers” for FY 2022.
In November 2022, Group company MIRAIT ONE SYSTEMS
Corporation was selected as one of the “Top 100 Telework
Pioneers” for FY 2022. The “Top 100 Telework Pioneers” is ameasure implemented by the Ministry of Internal Affairs andCommunications (MIC) since FY 2015, in which companies
and organizations that have been promoting the introduction
and utilization of telework are designated as “telework pioneers” and companies with sufficient achievements are announced as the “Top 100 Telework Pioneers.”

Integrated report 2023

Data

2,094

130

746

IT Passport■Electrician (Class 1/Class 2)
Changes in Certifications Held

792
400
548
86
2,621
423

1,202
37
51

198

JUIDA Operation Skill

761
386
354
15
2,108
438

FY 2022

Empowerment of Diverse Employees through Flexible
Workstyles
We have created an environment in which all of our diverse human resources can efficiently succeed while achieving work-lifebalance. This is accomplished through the promotion of flextime,
partially flexible shifts, variable working hours and remote work
(working from home, on business trips, or at satellite offices).
In addition, as a cost reduction measure for telecommuters, a daily subsidy of 200 yen is provided based on the number of days of implementation.
Awarded Three Stars in the 6th Nikkei “Smart WorkManagement Survey”
In November 2022, MIRAIT ONE was awarded a three-starrating in the 6th Nikkei Smart Work Management Survey,
which selects leading companies that are taking on the challenge of revolutionizing productivity through work style reform.
The survey, conducted by Nikkei Inc. and Nikkei Research
Inc. since 2017, targets listed companies and leading non-listedcompanies nationwide. The survey defines “smart work management” as efforts to maximize organizational performancethrough three elements: “realization of diverse and flexible workstyles,” “system for new business creation,” and “ability for market development.” Companies are rated out of five stars.

Promoting Health and Productivity Management under
the Leadership of Top Management
Our group is focusing on promoting health management,
which is one of our material issues, and has placed it as critical element of Change 1 “People-centric management” in our
medium-term management plan. In July 2022, we issued the
MIRAIT ONE Group’s Health and Productivity Management
Declaration. We promote our health and productivity management under the leadership of our president and accelerate it by
the organizational structure shown on the next page.
Health management support for employees
In addition to regular health checkups for all employees, we also
conduct comprehensive health checkups for those who havereached a certain specific age and specific health guidance for
employees to support employee’s health management. We also
continue to implement health promotion measures such as creating opportunities for refreshment by providing recreational facilities around the country and walking events organized by ourhealth insurance association (HIA). From 2023, we have started
some new projects such as new health management tools tomanage physical condition/health consultation, increase thenumber of public health nurses, and expand support for comprehensive health checkups.
Mental Health
The “stress check program” mandated by the Ministry of
Health, Labor and Welfare is aimed at primary prevention ofmental health problems by making employees aware of theirown stress and improving the workplace. Our group introduceda mental condition follow-up (consultation desk, etc.) before theprogram becomes mandatory. Based on group analysis of thestress check results, in order to prevent mental illness we conduct mental health trainings into every department.
Support for returning to work for employees on sickleave due to mental illness
For employees who are on medical leave or sick leave due tomental illness, we provide comprehensive support from the startof leave to follow-up after returning to work, including support
from mental health promotion personnel. During leave, we will
carry out a “rework program” that utilizes rework facilities. If theemployee expresses an intention to return to work, the reinstatement examination committee will decide whether to return
to work based on a diagnosis by the physician in charge and incollaboration with the industrial doctor and the company management. After returning to work, we provide employment con-

Corporate Governance

714
366
349
16
2,108
418

Installation Technician (Types AI/DD)
First-Class Electrical Construction Managing Engineer
First-Class Construction Managing Engineer
First-Class Certified Architect
Qualified Managing Engineer
First-Type Electrical Worker
First-Class Technical Radio Operator for On-TheGround Services
On-The-Ground I-Category Special Radio Operator
First-Class CATV Engineer
Cisco Certified Internetwork Expert (CCIE)
Information Technology Engineer (Basic/Applied)(Number)

FY 202170
FY 2022 Results:
72.1% Non-consolidated (MIRAIT ONE Corporation only)

Health and Productivity Management Initiatives

Sustainability Management

Main qualifications

Non-financial targets of the 5th Medium-term Management Plan
Annual paid leave utilization rate:% Non-consolidated (MIRAIT ONE Corporation only)

After launching its Telework Division in April 2019, MIRAITONE SYSTEMS has been promoting telecommuting operations by hiring dedicated teleworkers and reviewing its telecommuting rules and regulations. In FY 2022, we will change
from “telecommuting rules” to “telework work rules” to promote diversification of work styles regardless of location, andwe are also promoting workcation initiatives. We will continue
to consider initiatives in cooperation with local governments tofurther promote location-independent work styles.

Value Creation Strategy■Changes in the number of employees with qualificationsin the past three years (Six operating companies*)

find it easy to balance work and family life and promote theirwell-being. To this end, we have introduced no-overtime days,
encourage employees to leave work on time, and support
employees taking their annual paid leave before or after theGolden Week holidays, New Year holidays, project vacations,summer vacation, etc.
We are committed to reduce total working hours by raising
operational efficiency through KAIZEN (improvement) activities
and promotion of ICT utilization at each workplace, and using a
PC log system to monitor/record the appropriate working hours.

Values & Vision

Personnel Training System
The personnel training system of the MIRAIT ONE Group comprises the “sectorial model system,” designed to enhance specialized professional capabilities for business operations, and“stratified training system,” aimed at promoting mastery of universal know-how required at each professional level. Together, thesystem supports the growth of each employee and systematically reinforces human capital that backs up future business growth.
From introductory training for workers who have just joined
the company to training for senior managers, our program is designed to enable each employee to acquire the skills and knowledge required to fulfill the roles expected at the respective level,
as well as skills and knowledge they need to learn in each career
stage. In particular, we offer extensive education and training programs for new employees, which are designed to enable themto succeed in their careers regardless of whether they have ascientific or liberal arts background. Through the aforementioned
embodiment of their own goals and career development by the
CDP, we encourage employees to actively take on the challengeof obtaining various certifications. In addition, our reward system
based on the degree of difficulty is designed to meet the growth
aspirations of individual employees. In addition, we conduct training to develop DX human resources and have introduced an inhouse DX qualification certification system.

mentor for each new employee, aside from his or her supervisor at the assigned section, to provide guidance and counseling. The program is designed to encourage new employees(mentees) to grow spontaneously and autonomously throughawareness and advice based on dialogue. The feedback onregular reporting and monthly interviews in this program support the growth of new employees as well as that of senior
employees who serve as mentors.
Training Programs at Overseas Operations
The MIRAIT ONE Group conducts various training programsfor employees hired at their overseas locations. For instance,
the Lantrovision Group assigns a full-time staff in charge of human resource development and training. The Group provides
a wide range of programs from basic training on on-site cable
design, construction, testing, etc. to practical training involving
bidding, quoting, and contracts to raise employees’ skills andmotivation. The Group has taken the initiative in obtaining cable vendor certifications to strengthen quality control, improvecustomer satisfaction and bolster business competitiveness.
We also recruit and dispatch overseas trainees, mainly
young employees of the MIRAIT ONE Group, to learn technologies in green power generation projects promoted by ouroverseas subsidiaries and to develop human resources thatwill support our global businesses in the future.

26

Human Resource Strategy■Organizational structure for Health and Productivity Management
President and CEO
Promotion of Health and Productivity Management

Health and Productivity
Management Committee

Work-Life Style Reform Committee
Promoting Health and Productivity Management

MIRAIT ONE
Health Insurance
Association

General Affairs and Human Resources Division• Promoting medical checkups• Promoting specified healthguidance examinations• Prevention of lifestyle-relateddiseases severe aggravation

Health and Productivity Management Office

Health Committee• Planning and promotion of health and productivity management policies• Disseminating information to employees• General operations related to health and productivity management• Consultation service• Advice for management team
• Providing training andinformation to employees• Leave-of-absence/
return-to-work follow-up

In-house companies and subsidiaries
Safety and
Health Committee

In charge of promoting health and productivity management
Deployment of items promoted by Health and Productivity Management Committee

MIRAIT ONE union

Employees

27 MIRAIT ONE Corporation

General Employers Action Plan based on The Act on Promotion of
Women’s Participation and Advancement in the Workplace(Plan period: July 1, 2022~March 31, 2026) Non-consolidated (MIRAIT ONE Corporation only)➀Aim for25%
ratio of women in
new graduate hires➁To increase the numberof women in managerial
positions by

20%
from the current level.

➂Aim for a

70%

annual leave
utilization rate

* For details, visit our website (https://www.mirait-one.com/english/esg/diversityinclusion/).

➀ Establish an environment that facilitates the use of childcare leave
for both men and women➁Create a worker-friendly environment

Number of rehired employees

68
88.3%

Reemployment rate
* MIRAIT ONE Corporation only

Promoting the Active Role of Local Personnel in Foreign
Countries
The MIRAIT ONE Group currently runs overseas bases in
14 countries and regions (as of March 31, 2023), mainly in
Asia-Pacific region where locally hired personnel play important roles. To make it easier for each employee to work andmake the most of his or her individuality, we implement various
measures, such as improving technical capabilities throughmutual support, including the dispatch of personnel between
overseas bases, and exchange meetings at bases.
MIRAIT Philippines Inc. also contributes to the local community and enhances its credibility by planting approximately 500
trees in Cebu City with the participation of 43 local employees.

* For details, visit our website (https://www.mirait-one.com/english/esg/diversityinclusion/).

Support for Elderly Employees
In response to the declining birthrate and aging population in
Japan, we have created an environment where willing senior
workers can continue to play active roles. This was done byestablishing a reemployment system after retirement to support the active participation of senior human resources who
hold qualifications in advanced technologies required for thetelecommunications construction industry and MIRAI (future)

Tree Planting in Cebu City (MIRAIT Philippines Inc.)■Support system for balancing career with childcare and nursing care (MIRAIT ONE Corporation)
Related items

Program for balancing family and career

Legal requirements

Maternity leave

Paid for 6 weeks before and after childbirth, unpaid for the portion exceeding 6 weeks
after childbirth

UnpaidLeave for childbirth of spouse

2 days (paid)—

Leave by accumulating expired
annual leave

Nursing care for family members, maternity checkups, infertility treatment, childcare
associated with the childbirth by a spouse—

Childcare leave

Under 3 years old (until turning 3 years old)

Under 1 year old (within 1 year up to 14
months old with Dad and Mom Parental
Leave Plus)

Shorter working hours forchildcare

Up to 3rd grade

Under 3 years oldChild nursing leave

Up to 4th grade (Paid leave can be taken by the hour.)Until the child enters elementary school(unpaid)

Restrictions on overtime and latenight work

Up to 3rd grade

Until the child enters elementary school

Nursing care leave (short-term)

Paid leave taken by the hour

UnpaidNursing care leave (long-term)

Up to 1 year per person

Up to 93 days per person (may be divided)

Integrated report 2023

Data

Continue to be an “attractive company group” with diverse employees working actively.
The MIRAIT ONE Group respects individual personality andseeks to build workplaces where its employees perform totheir full potentials, regardless of age, gender, educational
background, nationality, disability, sexual orientation, gender
identity, etc.
We have established the Diversity & Inclusion Office, a specialized organization to promote diversity and inclusion, in the
General Affairs and Human Resources Division to leverage diverse perspectives and values in corporate management. Our
focus is on building a workplace environment and developing
management-level personnel to maximize the characteristics(Plan period: July 1, 2022~March 31, 2025) Non-consolidated (MIRAIT ONE Corporation only)

77

Corporate GovernanceDiversity & Inclusionand potential of each individual employee.
Diversity & Inclusion, one of the Group's material issues, ispositioned as a key initiative. Our Mission (public mission), whichclearly defines our approach to each stakeholder, declares ourcommitment to “continue to be an attractive corporate groupwhere diverse employees work with passion and vitality.”
In addition, as part of “People-centric management,” weare dedicated to developing a pool of diverse human resources including non-Japanese engineers.
To further develop these series of diversity and inclusion
initiatives, we established the “Diversity and Inclusion Declaration” in December 2022. We will promote diversity and inclusion to realize a corporate culture that respects each individualand makes them a strength of the organization.
Empowering Female Employees
We devise action plans for the purpose of enabling female
employees to reach their full potential and pursue their careers in a wide range of arenas. Specific numerical targets
are set for the ratio of women in new graduate hires and inmanagerial positions and to expand occupational fields for
women. PDCA cycles are employed to achieve these targets. In addition, we actively promote work-life balance bydeveloping a working environment that enables employees
to balance childcare and nursing care responsibilities withprofessional career.

Number of employees subject to mandatory retirement

Sustainability Management

siderations such as enforcing short working hours and limiting
overtime work.
Health and Productivity Management Excellent
Corporation Certification
In March 2023, MIRAIT ONE and Shikokutsuken Co., Ltd.
was certified by the Ministry of Economy, Trade and Industry
as a 2023 Health and Productivity Management Organization(large-scale corporation category) as a company that practices excellent health and productivity management.
Using this certification as a starting point, we will work more
to improve the environment for health and productivity management, then create a virtuous cycle for sustainable growth and corporate value improvement, with “health” as one of its core values.

General Employers Action Plan based on the Act on Advancement of
Measures to Support Raising Next-Generation Children■Status of reemployment after retirement (as of the end of FY 2022)

Value Creation Strategy

Industrial physician/public health nurse

domains.
We also hold life plan seminars for employees who havereached a certain age and support them with work designingand financial planning after employment extension.
Values & Vision

Group Presidentsʼ Council/Executive Committee
Determination of policy/strategy on health and productivity management

Supporting employees to balance childcare and nursing
care responsibilities with professional career
We have instituted programs that employees can use during
important life events such as childbirth, childcare, and nursing
care beyond the standards stipulated by law, so that employees can continue working with a sense of security for a longtime. They include the parental leave, which is available until
the child reaches three years of age, and shorter working hourarrangement that can be used until the child completes thethird year of elementary school.
As of the end of FY 2022, the childcare leave acquisition
rate among female employees is 100% with the leave acquisition rate for childcare and other reasons among male employees at 78%. We have promoted efforts to maintain thechildcare leave acquisition rate and raise it even further. Also,
we implement support measure to ensure employees on childcare leave can return to work smoothly and play an active rolein the company. The measures include providing information
on developments in the company during their absence andconducting interviews prior to their return.

28

Digital Strategy
We will evolve all value creation through DX reforms.
Focus on DX as the core of
growth strategy

People-centric management

Change 2

Health DX

Working style DX

Acceleration ofbusiness growth

Offensive
Defensive
DX Data utilization/ DX
collaboration

Sales system DX

DX Human Resource Development

Change 3

Top-classprofitability
Construction system DX
Common system DX

Marketing DX
Change 4

Management based on data insights

In FY 2023, the second year of the 5th Medium-term Management Plan, we will especially promote “DX Reform of Existing
Businesses” as a business growth strategy as important as theaforementioned “Acceleration of Business Shift to Growth Fields,”
by pursuing “value chain reform” through DX and the effects ofthe 2022 merger* of the three companies, and by promoting
steady cost reduction, we aim to improve the profit margin of thecarrier business by 3 percentage points by FY 2026.
* Merger of MIRAIT Holdings Corporation, MIRAIT Corporation and MIRAIT Technologies
Corporation- the three companies implemented on July 1, 2022.

Improve profit margin of carrier business through DX reforms(FY 2026)

3 points or more

Both “offensive DX” and “defensive DX” progressed
Specifically, in “offensive DX,” we are building a process management system by utilizing data, sharing information, and introducing SFA* to strengthen sales capabilities, and we havealso launched the “Mirai Business Community” to promote

29 MIRAIT ONE Corporation

DX Core Human Resource Development(FY 2026)
Development of approximately

2,000 core human resources

In addition, to develop expert human resources (data scientists), who are indispensable not only to improve operational efficiency through DX, but also to realize high value-added
business operations, we will not only train internal human resources, but also strengthen mid-career hiring and collaboration with external human resources to enhance the ability toutilize data throughout the entire organization.
In order to raise the DX mindset and literacy of management, who are responsible for formulating a series of DX strat-

Human resources who can (and have) taken on and implemented DX on their own.
Human resources who understand the various DX and operations
within the company and can use data to transform operations
and promote proactive partnerships.

Target

400 persons

DX Core Human Resources
Human resources who understand the flow of data associated with the basic workflow usedin their organization and can use tools to check, analyze, and visualize the data.
Human resources who understand the outline and applications of DX technology for business
innovation and improvement, and who have the ability to propose and initiate ideas andcooperate in the promotion of the DX division of the business unit.

Target2,000 persons

Company-wide literacy (mindset)
Understand business-related data and be able to use tools to collect and store data in a
structured and categorized manner.
Understand the purpose of each DX measure and be able to work on it after recognizingthat it is “my business.”

All group employees: approximately

14,000 persons

Fostering a DX Promotion Mindset with “KAIZEN” as a
Keyword
To foster a DX promotion mindset among all Group employees,
which is the foundation for DX reform, we are holding the “DX& KAIZEN Award” from 2022. The convention, which has added DX reform case studies to the existing KAIZEN convention
theme, will present awards for outstanding case studies, andaims to accelerate DX reform throughout the Group by horizontally spreading the concept to other business locations. FY
2022 marked the first time the competition was held since thelaunch of the MIRAIT ONE Group, with more than 8,000 people
watching and voting during the two-week online period.
We will continue to focus on DX to translate the ingenuity and business improvement mindset we have built up overmany years of KAIZEN activities into fundamental business
transformation.
■DX & KAIZEN activities of the MIRAIT ONE GroupManagement Objectives
New Growth Strategy for the MIRAIT ONE GroupDX
Promotion Activities (Organization)
Organization standardizes good field-driven measures
On-site reinforcement of organization-led growth strategy measures

External Evaluation in DX
In June 2021, the Company received DX certification from the
Ministry of Economy, Trade and Industry (METI) for deepening
existing businesses (water pipe business, casting table, etc.),
creating new business models (store DX using 3D point clouds
and electronic shelf tags, etc.), and providing new solutions forthe smart society.
■ Example of construction system DX (deepening of electric
cable joint ditch construction using 3D point cloud data)
MaintenanceConstruction andManagement
CIM

Integrated with 3D model point cloud data

(data sharing)

DesignSurveyInterference Check

Shared CIM model
e.g.: Progress and work management model

AR display on site

In June 2023, the certification was renewed in recognitionof the progress of the business model and Change 4 “Management based on data insights” direction, strategies and tactics based on MIRAIT ONE Group Vision 2030.

In June 2022, we were selected as one of the “DX Hot Companies 2022” by the Ministry of Economy, Trade and Industry(METI), the Tokyo Stock Exchange (TSE), and the Information-technology Promotion Agency, Japan (IPA), in recognitionof our environmental and social innovation business based on
know-how cultivated in the telecommunications constructionindustry, promotion of ICT Solutions Business, entry into green
power business, development of new businesses through promotion of various DX, and efforts to shift business structure toa Full-Value Model, etc.

Data

Goals of the 5th Medium-Term Management Plan

Goals of the 5th Medium-Term Management Plan

DX Expert Human Resources(Data Scientist)

Corporate Governance

Change 5
Carbon neutral DX
Compliance DX
Strong foundation for ESG management

DX Human Resource Development
In order to develop DX human resources, which is an urgent
issue, Mirai College first holds a “DX Basic Course” for all employees to acquire basic DX literacy and mindset, and by June
2023, all employees of MIRAIT ONE have already taken thecourse. In addition, all employees of major group companies
are expected to successfully complete the course by the endof FY 2023.
In addition, in order to develop “core human resources”
who are responsible for planning and promoting DX in each organization, a “DX Intermediate Course” has been held at Mirai
College since March 2023, aiming to develop approximately
2,000 core human resources by FY 2026, including selectionof mid-level human resources and development of new graduate employees.

MIRAIT ONE DX Human
Resource Development Plan

Sustainability Management

Safety DX

Acceleration of efforts for Five Changes through topdown approach by the “DX Promotion Committee”
In order to comprehensively promote and accelerate the realization of the other four Changes through DX in Change 4“Management based on data insights” as mentioned above,
the Group has organized a DX Promotion Committee chairedby the CDO directly under the President and CEO, and is promoting various measures across the organization under thiscommittee and five subcommittees (Marketing, Sales, Construction, Procurement, and Data Driven Management). The
DX Promotion Committee then manages progress under evaluation indicators set for each DX.

■Desired DX human resources profile and target numbers

Core system renewal
The renewal of the core system as the IT infrastructure to promote DX is under way to build a new core system for the entire
group. By maximizing the characteristics of the ERP package,
we will respond flexibly to changes and reduce costs, and by
applying it to group companies as well, we will achieve DX reform for the entire group. In addition, we will build a data-driven management foundation by enhancing data analysis functions in line with the revamping of the core system.

Value Creation Strategy

Change 1* Sales Force Automation (sales support system)

egies and monitoring their progress, we are also promoting DX
reform company-wide by offering DX courses for executives.

Values & Vision

Change 4 “Management based on data insights” and FY
2023 Key Strategy “DX Reform of Existing Businesses”
The MIRAIT ONE Group Vision 2030 and the 5th Medium-Term
Management Plan include Change 4 “Management based ondata insights” as one of the five business transformations. We
will focus on “offensive DX” (development of a knowledge-based
data environment and optimization of sales approaches), “defensive DX” (value chain reform, smart construction, and utilizationof BPO/RPA and robotics), and “DX human resources development” (development of experts and core human resources andimprovement of company-wide literacy) across the Group to realize the other four “Changes (growth strategies).” In this way, we
are working to visualize all of our value creation from both quantitative and qualitative perspectives, and to transform our businessthrough the effective use of data.

new businesses such as “MIRAI (future) domains,” and are
expanding the knowledge database and strengthening cooperation among members.
In “defensive DX,” standardization and visualization of construction manager operations and creation of digital support
tools are underway, modeled on the NTT access business,and horizontal deployment to other businesses has begun in
FY 2023. We are also expanding the use of network cameras
to expand smart construction.

KAIZENpromotion activities (on-site)

Integrated report 2023

30

Financial and Capital Strategies

Financial/Assets Strategy* We are considering the “realization of management conscious of cost of capital and stock price,” as requested by the Tokyo Stock Exchange, based on our past measures to achieve sustainable growth and increase corporate value over the medium to long term. We plan toannounce this information on our website based on discussions at the Board of Directors meeting.

Shareholder returns

Investment for growth

Further Strengthening of Shareholder returns from the
5th Medium-term Management Plan

Enhance investment for growth▶ Allocation of Free Cash Flow after shareholder returns will be prioritized to growth investment

50% level— Stable dividend growth and flexible share buyback▶ Total shareholder return ratio at▶ Utilization of Liabilities will also be considered

Investment for growth to improve return on capital

Shareholder Returns Forecast for FY 2023
▶ Share repurchase:

Value Creation Strategy(assuming external credit rating of [A] is maintained)▶ Considering retirement of treasury stock that has no intended use▶ Annual dividend per share of

Values & Vision

The Group’s basic financial policy is to maintain both a stable financial base and capital efficiency. The Group will strive
to enhance corporate value by creating new business opportunities and accelerating the transformation of its businessstructure. To this end, the Group will strategically allocate management resources with an awareness of the cost ofcapital while maintaining a sound financial position.

FY 2022:65 yen (5 yen dividend increase)

6 billion yen

*

ROE

6.0%

EPS growth rate

@151 yen

FY 2023:

FY 2026 (target)

10% or more
@190 yen

10% or more/year* Includes 1 billion yen implemented in April 2023.

Vision of Cash allocation and balance sheet for FY 2023

Forecast for
FY 2023

20 (billion yen)

(%)

18

100.0
90.0

Total return ratio (right scale)

16

80.0

14

70.0

12

60.0

10
8

10.4

5

9.6

billion yen

billion yen

620
Annualdividend

4.1

4.7

billion yen

6billion yen

5

5.8

6

5.5

billion yen

billion yen

billion yen

billion yen

FY 2019

FY 2020

FY 2021

FY 2022

FY 202340 yen45 yen55 yen60 yen65 yenShare repurchaseTotal return ratio

40.0

Cash out

Cash flowfrombusiness
activities

Shareholder
return of

25 ~ 30 billion yen

30.0

billion yen

billion yen

Dividend

50.0

Cash in

20.0
10.0
0

Use of interest
bearing debt

12 billion yen ~Investment
activities
growthinvestment
M&A
Green Energy
Human resources,etc.

Perspective on balance sheet

AssetsLiabilities
Interest
bearing debt

Lower cost of capitalthrough leverage

Net assets
5th Medium-Term
Management Plan targets(FY 2026)

ROE 10% or more
EPS growth rate

Increase return on capitalthrough growth investment

10% or more per year

(Remarks) February 2023
Cancelled 5 million treasury shares

Dividend payout ratio

Shareholder Return Policy

Cash allocation

In the 5th Medium-term Management Plan announced in May 2022, the Company revised its existing shareholder return policy,
aiming for a total return ratio of 50% through stable dividend growth and flexible share buybacks, while comprehensively taking into
account its capital policy, business performance, and financial situation. On the other hand, the Company will consider the retirement of treasury stock that has no intended use. Our basic policy is to pay dividends from surplus twice a year, an interim dividend
and a year-end dividend, with the Board of Directors deciding on the payment of the interim dividend and the General Meeting of
Shareholders deciding on the payment of the year-end dividend.

Capital requirements of the Group include ordinary working capital—such as materials, subcontracting, and labor costs for construction, and expenditures related to investment activities—such as capital investment funds for the acquisition of business assets
and investment and loan funds for M&A for future growth.
With a target total return ratio of 50%, the Group will also allocate its cash flow to shareholder returns, mainly by purchasingtreasury shares to pursue stable and continuous dividend growth and implement flexible capital policies.

FY 2022 results

The Group basically finances its operations with internal funds and uses a cash management system (CMS) to effectively use theGroup funds. In case the Group needs a capital temporarily, it procures short-term funds from financial institutions.
To prepare for capital requirements for emergencies and growth investments such as M&A, the Group ensures to hold appropriate amounts of cash and deposits on hand. In addition, the Group works to build a fund-raising structure such as by maintaining
and strengthening relationships with financial institutions to establish commitment lines for short-term borrowings and obtaining
external credit ratings.
In particular, when making large investments such as M&A, we also utilize debt on the assumption of maintaining the external
credit rating of [A].
Through a series of these measures, we are striving for highly capital-efficient management with the targets of “ROE of 10% ormore” and “EPS growth rate of 10% or more per year” in the 5th Medium-term Management Plan.

Forecast for FY 2023
For FY 2023, in addition to the resolution in May 2023 to repurchase treasury stock (up to 4.5 million shares/5 billion yen), the annual dividend per share will be increased by 5 yen to 65 yen (interim dividend: 30 yen, year-end dividend: 35 yen). In April 2023, theCompany repurchased 600,000 shares of its own stock (600,000 shares, 1 billion yen), in accordance with a resolution in Marchof the same year.

Method and Status of Financing

Data

Based on the above policy, the year-end dividend for FY 2022 was set at 30 yen per share, and the annual dividend, including theinterim dividend of 30 yen per share, was set at 60 yen per share. In addition, in order to enhance shareholder returns and enable
the execution of a flexible capital policy in response to changes in the business environment, we conducted a share repurchaseduring FY 2022 (3.14 million shares, 5 billion yen). This resulted in a total return ratio of 73.2% for FY 2022.

31 MIRAIT ONE Corporation

Corporate Governance4

Dividend
payout ratio(right scale)

Vision of cash allocation

Sustainability Management

Track record of shareholder returns

Integrated report 2023

32

Promote ESG-oriented Management

Building and Maintaining an Environmentally-Friendly Society

Promote ESG-oriented Management to Contribute to the SDGs
and Enhance Corporate Value for Sustainable Growth

For the Preservation of the Global Environment

Executive Committee deliberates and decides on policies andsystems for effective and efficient risk management, while theCompliance Executive Committee reports and corrects casesof compliance incidents in the Group and examines measuresto raise compliance awareness. The Human Rights/D&I Committee reports on human rights risk situations, and discusses
and examines issues to be addressed, Diversity & Inclusion
promotion and other items.

In February 2023, the Group received certification from
SBTi (Science Based Targets initiative) for FY 2030 targetof greenhouse gas emissions reduction that was set forth
toward the realization of carbon neutrality in 2050. For information disclosure based on the recommendations of
TCFD (Task Force on Climate-related Financial Disclosures)
including these targets, see the following:https://www.mirait-one.com/english/esg/environment/

Board of Directors
Reporting

Percentage Reduction of Greenhouse Gas emissions (FY 2030)
Scope 1+2

42
25

% reduction compared to FY 2020
Scope 3% reduction compared to FY 2020

Actual results
Greenhouse gas emissions compared to FY 2020 (base year) are as follows.
■Greenhouse gas emissions
Category■ESG Management Promotion Structure Chart

Delegation/
supervisionNon-financial targets of the 5th Medium-term Management Plan

TopicsEmissions
FY 2020 (standard)

FY 2021

Direct emissions

66,89067,907

65,166

Scope 2

Indirect emissions

22,841

21,277

19,754

Scope 3

Other indirect emissions

2,471,130

2,413,496

2,222,900

513,292452,295

337,073

1,892,870

1,848,997

1,814,356

Purchased goods and services

Category11

Use of sold products

Others (Category2, 3, 5, 6, 7, 12, 13) Total
Sum of Scope 1-3

64,968112,204

2,560,861

2,502,680(Unit: t-CO 2e)2,471,130
2,413,496
2,222,900

89,731Below

1,853,347

89,184(Target)84,92071,471(*1 )Below2,307,820

52,044* Figures for FY 2020 (Standard) include those for SEIBU CONSTRUCTION CO., LTD.
* Emission unit: Scope 1, 2: t-CO2, Scope 3: t-CO2e

33 MIRAIT ONE Corporation

Formulate basic ESG policies and strategies for the entire
Group, promote various measures, and receive reports on
matters delegated by subordinate subcommittees (Risk Management, Compliance, Human Rights/D&I)

Establish the items necessary for the Group’s risk management, prevent risks from materializing and execute a prompt
response when risks materialize by sharing information on risk
occurrence situations (cases, countermeasures, etc.).

Compliance Executive Committee

Establish the basic items related to the Group's compliancepromotion activities and ensure thorough Group-wide compliance by sharing information on compliance-related cases,
countermeasures, etc.

Human Rights/D&I Committee

Strengthen human rights management by discussing risk situation reports and issues to be addressed on human rights, andplanning training on D&I promotion, human rights due diligenceand human rights awareness.

Category

Emissions (t-CO2e)

Category2

Capital goods

32,442Category3

Fuel- and energy-related activities (not included in Scope 1 or 2)

13,165

Category5

Waste generated in operations

3,362

Category6

Business travel

1,866

Category7

Employee commuting

3,392

Category12

End of life treatment of sold products

3,163

Category13

Downstream leased assets

14,0812020 2021 2022
(standard)

2030

2020 2021 2022
(standard)

2030
(FY)

* Category4, 8, 9, 10 are not applicable to our company.

Data

Risk Management Executive
Committee(Target)*1 Reference: Breakdown of others

ESG Management Promotion Committee
Chairperson: President and CEO
Members: Business Company COO, President of Major Group Companies,
Frontier Business Headquarters COO/CDO, 1st Department
Manager of Stuff Department, Directors who are Audit andSupervisory Committee members (Full-time)

Corporate Governance

Executive Committee

Scope 3

(Unit: t-CO 2)

FY 2022

Scope 1Category1

Scope 1+2

Sustainability Management

The ESG Management Promotion Committee, chaired by the
President and CEO, formulates basic policies and strategies
on ESG management in general, identifies material issues, andresponds to various environmental initiatives.
Starting in July 2022, the “Risk Management Executive
Committee,” “Compliance Executive Committee” and “Human Rights/D&I (Diversity and Inclusion) Committee,” chairedby the compliance officer, are administered under the ESG
Management Promotion Committee. The Risk Management

Effort toward Decarbonization

Value Creation Strategy

ESG Management Promotion Structure

Values & Vision

The MIRAIT ONE Group promotes ESG-oriented management with the aim of contributing to the SDGs and enhancing
corporate value for sustainable growth.
The ESG Management Promotion Committee, which was established in September 2021, implemented the “identificationof material issues (materialities)” and “endorsement of the TCFD” in FY 2021, and acquired “SBT certification” in FY 2022.
The 5th Medium-term Management Plan that begins in FY 2022 identifies “strong foundation for ESG management”
as one of the “Five Changes” stated in the growth strategy to realize MIRAIT ONE Group Vision 2030. They include the“initiatives aimed at the achievement of greenhouse gas reduction targets,” “co-creation of social value through the
MIRAIT ONE Partner Association,” “enhancement of audit system and strengthening of audit functions through threelines of defense,” and “strengthening of corporate governance through new Group management system.”

MIRAIT ONE Group aims for “building and maintaining an environmentally-friendly society” through our effort toward materiality, i.e., “realization of a decarbonized society through business activities” and “contribution to environmentally-friendly
and resilient urban and regional development.” The Group will also achieve both the continuous enhancement of corporate
value and the solution of social problems by steadily grasping growing business opportunities related to decarbonizationand mitigation of water risk as well as rising needs for regional revitalization and transformation to smart cities.

Environmental Management
Conformance to ISO 14001
Each of our Group companies complies with and practices
environmental management system (ISO 14001) (ratio of certified locations: 100%). Each business location evaluates theenvironmental impact of its operations, formulates measures
to address significant environmental impacts, and implements
a PDCA cycle for continuous improvement. Over the eight
years from 2015 to 2022, our Group companies in Japan havereported zero cases of the violation of environmental laws andregulations, accidents/pollution that leads to environmental
problems, or complaints about environmental problems.
In PDCA of these environmental protection activities, theactual values of our main performance indicators (CO2 emission, electricity consumption, consumption of fuels such as
gasoline and kerosene, emission of paper waste, household
waste and industrial waste, and green purchasing payments)
are utilized for monitoring and analysis. In summer and winter,when electricity consumption increases, each workplace im-

Integrated report 2023

34

Evaluation items

Deadline

Adherence to deadline and delivery

Environmental protection

Reduction of environmental load

Quality

Existence of defects

Improvement activities

Initiatives for improvement activities

Data asset management

Establishment of data asset management system

Management

Management stability

35 MIRAIT ONE Corporation

Acquisition of lands- Location search- Information collection■ Total annual power generation by solar power generators
at MIRAIT ONE Corporation offices(10 thousand kWh)FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

13.8

13.2

13.7

28.5*

32.4

Development

Enhanced domain

Power generation plant- Land evaluation- Collaboration with power
generation companies- Hazard evaluation- Identification of land owner- Consultation with administrative
agencies- Explanation to local community- Facility layout, etc.

Construction/Operation

Sales

Existing business

Enhanced domain- Various investigations- Design drawing- Administrative procedures- Facility construction- O&M- Sale of the power-generation
plant- Sale of power(PPA business / power retailbusiness)* The scope of aggregation was changed in FY 2021.

Promotion of Energy Conservation and Transition Toward
Renewable Energy
To reduce electricity consumption, which accounts for a large
portion of energy consumption in offices, the entire Group is
working together to promote multifaceted power-saving measures. They include: reducing the number of printers and copy
machines, and using them more efficiently; setting PCs to a
power-saving mode; optimum indoor temperature control;switching off unnecessary lighting; and raising awareness on
using elevators less frequently.
The Group is working to transition to the use of renewableenergy in different business locations. In FY 2022, 28% of theenergy used in the company building was changed to renewable energy.
Vehicles with Better Fuel Efficiency/Reduction of Greenhouse Gas Emissions
In addition to accelerating theconversion to low-emission,
fuel-efficient vehicles such as
EVs and hybrids, we also use
cloud-type drive recorders topromote “eco-driving,” which
has a lower environmental imPromoting the use of EVs
pact and helps lower the number of traffic accidents. In addition, we are working to reducegreenhouse gas emissions through better fuel efficiency andcompany-wide educational campaigns on the use of fuel additives that cut greenhouse gas emissions. In FY 2022, wechanged 14% of business-use automobiles to EVs and hybrid
automobiles.

Constructing Green Water-Supply Facility Robust over Natural Disasters
power systems are operating.
In Namie-machi, Fukushima Prefecture, the Group has been
contributing to the renewal of the town through an EMS (Energy
Also, even when solar power systems are not generating
Management System) that bundles renewable energy generatpower, the system provides power from secondary cells for at
ed locally by various devices including solar generators, wind
least 72 hours, contributing to the safety and security of the local
generators, hydrogen-fuel cells, and solar heat collectors. From
community.
July 2022, the Group also started the construction of a green
Secondary cellwater-supply facility that is robust against natural disasters byPowercombining solar power generation and secondary cells, and theWater tankfacility started operation from March 2023. Power is supplied toPowerwater-supply machines such as well pumps and water-supply
Solar panel
Filter
Water pump
pumps from secondary cells that are charged from solar panWellpump
els installed on roofs of houses. This water-supply facility is an
Tap water
off-grid facility (not connected to the power grid of power companies), so that it can continue operation even in a disaster or
Water-supply facility that combines solar power generation
Secondary cell facility
power failure in which grid power is not available, as long as solar
and secondary cells

Commended by a Supplier for Our Secondary Cell Business
In April 2023, MIRAIT-X Corporation, one of group companies,
operation of facilities that use secondreceived Customer Service Excellence Award from TESLA for
ary cells and accumulating expertise andits excellent services in sales and construction that involves
know-how in this field.
Powerwall, TESLA’s secondary cell system.
Moving forward, we will enhance sales in the green energy
business by conducting the construction, maintenance, andData

Focusing on Green Energy Businesses as the Core of
Growth Strategy
We aim to realize a decarbonized society by constructing, operating, and maintaining more efficient social infrastructures
and advanced energy-related systems as part of our businessactivities, and by promoting the supply of renewable energy.
We contribute directly to creating energy infrastructureneeded for a decarbonized society through environmental andsocial innovation Business in the Corporate/Environmental
and social Infrastructure domain. Specifically, this is performed
through the design, construction, operation and maintenanceof power generation systems that rely on solar power and other renewable energy sources, installation and maintenance ofLED lighting and EV charging systems, supply of energy management and storage battery systems, and the acquisition of
the planner certification of ZEB (Net Zero Energy Building). We
also take an active part in initiatives toward realizing high-efficiency smart energy systems and smart cities, in addition todeveloping broadband wireless sensor network systems.
From FY 2023, which is the second year of the 5th Me-

Enhancement of renewable energy businesses

Energy Conservation and Energy Creation in Construction Centers
At local construction centers, we have installed LED lighting, demand monitoring systems for power consumption, and rooftop
solar power generators to promote energy conservation.

Corporate Governance

Environmental Protection
through Business Activities

Constructing a Solar Power Generation Plant, As a Green Power Business Operator
playing the role of a power generating company to gain lands,
We started the construction of a solar power generation plantdevelop facilities, and sell power. Moving forward, we will workin Fujinomiya City, Shizuoka Prefecture in September 2022. The
toward the enhancement of this business based on the technoplant started operation in March 2023, and started providing
logical competence that we cultivated through the construction
power to electricity retailers from April 2023.
of telecommunication facilities and total facilities, to solve probThis project not only builds and operates power generation
lems of customers and society and to vitalize local communities.
facilities as the first green energy business in MIRAI (future) domains, but also significantly enhances our business domain by

Sustainability Management

Control items

Initiatives in Company Offices,
Business Locations, etc.

Environmental Topics

Value Creation Strategy■Items subject to supplier score evaluation

dium-Term Management Plan, we set forth “enhancementof green energy businesses” as one of the important growthstrategies, and will make corporate-wide effort on local government PPA, industrial power storage facilities, and inter-system connection businesses, in addition to existing businesses
related to solar power generation, EV battery chargers, andrechargers, aiming for net sales of 30 billion yen from these
new businesses in FY 2026.

Values & Vision

plements its own targets to reduce power consumption basedon the actual values of performance indicators.
Green Development Guidelines
In FY 2017, the Group established the “Green Product Development Guidelines,” which outline the items to be consideredin the development stages to protect the global environment. In
the development of construction methods, products and services, we comply with relevant laws and regulations and take
into account the environmental impact throughout the life cycle.
Environmental Standards for Evaluating and Selecting
Business Partners
As part of our integrated management system, we evaluate
and select our business partners in order to ensure their compliance with our product requirements by determining whether they are capable of supplying products and services thatsatisfy our requirements. Specifically, suppliers whose transaction value exceeds the predetermined amount are evaluated based on the Supplier Evaluation Criteria Table, which isshared across the Company.
The evaluation items include items related to quality, deadline, and management, as well as items dedicated to the environmental area (E) of ESG, such as ISO 14001 certification andefforts to reduce environmental impact.

Contributing to Circular Society
PolicyThe MIRAIT ONE Group will reduce geoenvironmental impact by properly disposing of industrial waste generated from our business operations on our own responsibilities and by promoting environmental conservation activities in consideration of sustainable
use of resources.

Integrated report 2023

36

Non-financial Targets of the 5th Medium-term Management Plan
Industrial waste final disposal ratio (FY 2030)% or less

FY 2022 results

3.41

%

The Group considers water risks as significant as climatechange risks, and is working to provide various solutions
centering around the maintenance and construction of water infrastructures. The Group considers these efforts as
examples of business-based contribution for the reductionof water risks and effective use of water resources.

Calculation ofdeterioration
probabilities

Determination ofsignificancePreparation ofrenewal plan

EnvironmentDB- Visualization of deterioration
diagnosis results- Calculation by AI and machinelearning- Visualization of the impact of water leak
- Important water-supply facilities, costs, populations,and pipe diameters- Damage from earthquakes (original function)* Group original services suitable for the environment of Japan(4) Solution for water pipe bridge inspection using drones
This solution contributes to the prevention of water leak andpipe breakage caused by the aging of water-supply facilities
using drones and ICT technology.
Pilot
Drone
Top inspection

AI is used to analyze
data and infrared camera images captured bydrones to detect rust andconcrete cracks.

Sides/Bottom inspection
Bridge pier inspection

Detected rust

Crack analysis by AI

Image captured byan infrared camera(5) Water quality inspection
The use of drones facilitates the inspection of water quality
and alga in reservoirs conducted as environment conservation measures. The alga propagation status is checked by the
analysis of image captured by a spectrum camera.
Water at any desired point iscollected
by remote control.

Hospitals,
nursing care facilities,
etc.

Based on its materiality theme, “Contribution to environmentally-friendly urban and regional development,” theGroup makes effort not only in business but also in social
contribution activities such as volunteerism toward the realization of sustainable society that is mindful of biodiversity
including the preservation of the ecosystem.
Advocating “rice farming” that aims for the preservationof the ecosystem and transition to environment-friendly
agriculture
The Group supports “rice farming” carried out by one of ourpartners, Murayama Construction Co. Ltd., for the preservation of the ecosystem, transition to environment-friendly agriculture, the use of deserted cultivated land, and the preservation of the original landscape of Satoyama (village hill forest).
Volunteers from the Group help with the farm work. The Groupsuspended this activity from 2019 due to the COVID-19 pandemic, but started it again in October 2022 and volunteers
including President Nakayama harvested rice.
Certain limited amount of rice harvested from the MIRAITONE Rice Field in Tokamachi City, Niigata Prefecture, is sold to
stakeholders as “MIRAIT ONE rice.”
We will continue our efforts to preserve biodiversity throughthis and other initiatives.

Data

Promoting Recycling of Used Construction Products
We collect used uniforms and helmets to promote recycling
through material processing (to be reused as new raw materials).
Reducing Paper Use
MIRAIT ONE Corporation promotes specific measures and initiatives to reduce paper use by using less paper at meetings,
eliminating the need to stamp paper documents and reforming
business processes.
Green Procurement
The Group promotes green procurement of paper and stationery with a target green procurement rate of 80% to beachieved by the end of FY 2025. The result in FY 2022 was
82.5%.

Collection andFacility information andpreparation of data water leak information

PolicyCorporate GovernanceECO drums

Initiative for Biodiversity

Automatic meter reading and water leak detection

Sustainability Management

Providing DX Promotion Solution for Waterand Sewerage Construction
There is a global rise in the importance of measures against
water risks and the effective use of water resources, and also
there are serious domestic problems of the aging of social infrastructures and the decrease of working population. Under
these circumstances, the Group conducts water engineeringbusiness of several billion yen every year to support stable andcontinuous operation of water infrastructures and the effective
use of water resources.
In September 2022, the Group started providing water
DX solutions that include the deterioration diagnosis, construction, and maintenance of water pipes using data and ICT
technologies, based on customer needs and lessons that wehave learned through our water business. Through the eightsolutions described below, the Group provides environmental values related to water resources, as well as social values
through operation streamlining.
(1) Solution for deterioration prediction, impact evaluation,and planning of water pipe renewal
The solution estimates breakage risks and deterioration conditions by algorithms of AI and machine learning that use
customers’ data of water pipe path facilities and water leakrecords. The solution provides a map display of business risks
that would be caused by water leak, and automatically creates
action plans in consideration of costs.

(6) Water and civil engineering(7) Construction of water purification plant
We will propose the effective construction and renewal of water-supply facilities using data obtained by the above solutions.
(8) Solution for monitoring, operation, andmaintenance of facilities
We respond to the needs for full outsourcing of the operationand maintenance of facilities by our 24-7 support system after
they are deployed.

Value Creation Strategy

Establishing Policy on Disposal of Industrial Waste
In order to translate resource recycling and waste reduction
steps into sustainable growth and enhanced corporate value,
the Group has established targets on the Industrial waste final
disposal ratio for FY 2030 in its 5th Medium-term Management Plan that begins in FY 2022. In July 2022, the “MIRAITONE Group Policy on disposal of industrial waste” was established to develop this initiative into effective policies.
Recycling Construction By-products
We continuously work to minimize construction by-products
generated at each construction site and to find ways to recycle by-products that are generated. As part of that effort,
we launched an initiative in 2008 in the telecommunications
construction industry to transition from conventional, disposable wooden drums for winding steel stranded wire toreusable ECO drums. Today, ECO drums are used for mostdrum sizes.

Policy(2) Solution for water pipe construction management(photoruction water)
We provide our original functions specialized for water pipe
construction. Construction management tasks can be reduced by approximately 30% using ICT technology.
(3) Water-supply smart meter solution
The solution automatically sends flow data by wireless communication. Automatic meter reading, water leak detection,and real-time water flow display are possible without service
personnel visiting different sites.

Values & Vision

1.5

Contribution to the Reduction of Water Risks
and Effective Use of Water Resources

The alga propagation status in thewater is checked by the analysis of
the image captured by a drone.
Capturing

Collecting water

Image
analysis- Automatic creation of renewal plan
Optimization calculation* A system provided by FRACTA is used.

37 MIRAIT ONE Corporation

Integrated report 2023

38

Building and Maintaining a Safe, Secure, and Prosperous Society

Realizing a Safe and Secure Society
tions. We continuously improve our performance by identifying
all actions that can lead to accidents resulting in injury or death,serious traffic accidents, serious facility accidents and other seriously unsafe incidents as supervision check-points.

Safety Management

Quality Management■ Number of new candidates for authorization of workers forhigh elevation work safety(number of candidates)

The MIRAIT ONE Group, which builds the infrastructure ofsociety as its business domain, creates value based on thebasic premise of guaranteeing and improving safety, andimplements business processes that prioritize safety.

Effort toward Non-financial Targets of
the 5th Medium-term Management Plan

(FY 2022 results)

FY 2022

Access system

81

104

109

Network system

30

32

64

* One of the supervisory positions appointed by the Group to oversee individual works.

VR-based danger simulation training

Training to experience high elevation work

Introduction of Cloud-type Drive Recorders
From 2019, the Group uses cloud-type drive recorders forbusiness vehicles in order to eliminate traffic accidents during
trips to work sites or other occasions. As of the end of FY
2022, drive recorders have been installed in about 85% of
the Group vehicles (approximately 2,000 vehicles), resulting in
46% reduction of traffic accidents in FY 2022 compared withthe previous fiscal year.
Acquisition of ISO 45001 Certification
We operate occupational health and safety management systems in compliance with ISO 45001. As of March 31, 2023, allbusiness locations of MIRAIT ONE are certified. We comply withlaws and regulations as well as occupational safety and healthrequirements, reduce and eliminate occupational safety risks
through risk assessment and activities to anticipate danger, andpromote safety and security through educational exchanges inaccordance with the Policy on Occupational Safety and Health,which explicitly names safety as the highest priority in opera-

The Engineer Training Subcommittee, aimed at developing specialized technicians, offers various training programsfor employees of the Group and partner companies. Especially, 1,685 employees have received the mobile skill training tobuild their skills since the start of training in 2010.
Also, the Group participates in “National Skills Competition” organized by Japan Vocational Ability Development Association every year, and our employees won a Bronze Medal
for Excellence in Information Network Cabling at the “60thNational Skills Competition” held in November 2022. We willcontinue to improve our technical capabilities through participation in competitions and other means to offer and maintainsafe, reliable and high-quality services.

MIRAIT ONE Partners
In July 2022, the MIRAIT ONE Group launched MIRAIT ONE
Partners with some 400 core partners among approximately 2,200 partner companies. In addition to tackling the challenges of “MIRAI (future) domains” business in growth areas,
we support the growth and transformation of our partners bystrategic learning opportunities in the “Mirai College,” a humanresources development institution. Also, we will work with ourpartners to promote safety-health-oriented management andwork style reform at work sites and on-site value chain reform
through DX for the co-creation of social value and enhancement of corporate value.

MIRAIT ONE Partners Portal Site

Our medal-winning employees

Fair Trade and Partnership
The “MIRAIT ONE Group: Charter on Safety and Compliance”
emphasizes, in “6. Fair Trade and Partnership,” our commitment to comply with various laws and regulations on business
transactions, conduct transactions in a fair and transparent
manner, and maintain cooperative relationships with partnercompanies so that we can work together toward solving social
issues.

Data

39 MIRAIT ONE Corporation

FY 2021

Collaboration with Partners

Corporate Governance

Establishment of Charter on Safety and Compliance
In July 2022, the Group established the “MIRAIT ONE Group:
Charter on Safety and Compliance,” which reaffirms its priority on commitment to safety as the cornerstone of corporate
management. With all employees of the Group dedicated toensuring safety and compliance based on this Charter, ourgoal is to create a corporate group that earns the trust of all
stakeholders and contribute to realizing a sustainable society.
For Further Improvement of Safety AwarenessFor the elimination of accidents and further improvement ofsafety awareness, the Group reminds its employees of the importance of everyday reflection on basic manners of operation,
prepares safe operation procedure manuals, provides safety
training, creates videos of accident cases, and is proceedingwith the visualization of safety rules. In addition, the Group
works to activate communication with workers, reconfirm
safety awareness, and disseminate safety measures, throughfrequent visits of management executives including the President to workplaces and annual Safety Convention that involves group companies and partner companies.
Danger Simulation Training
In order to eliminate accidental falls, which account for approximately 40% of fatal accidents in the construction industry, theGroup provides a VR-based danger simulation training. The
purpose of this training is to remind the students of the importance of basic movements and fall prevention equipment andto raise safety awareness through simulated experience of fall
accidents.
Ensuring Safety During Emergencies
To be prepared for large-scale natural disasters, acknowledging the rising importance of our support for the restoration of

FY 2020

The Group considers quality as important a business challenge
and source of competence as safety. The “MIRAIT ONE Group:
Charter on Safety and Compliance” reaffirms “quality assurance”
as a material issue and emphasizes the commitment to “constantly incorporate new technologies and provide high-quality,
superior deliverables to meet customer expectations.”
Improving and Maintaining Technical and On-site
Capabilities
The Group implements training and a technical certification
system to steadily improve and maintain its technical strengths
that support service quality.
In recent years, worksite supervisors* who play the important business role as the representatives of work sites are
required to have a wide range of skills to deal with the increasing number of construction projects and the diversification andgrowing complexity of construction projects. As a concretemeasure for such a situation, the Group carries out “Worksite
Supervisor Training” for newly appointed worksite supervisorsand deputy worksite supervisors.

Sustainability Management

Zero

PolicyValue Creation Strategy

Number of accidents resulting in injury or death/number of serious facility accidents

information and communication infrastructure in the event of
a disaster, the Group holds periodic disaster response drills
twice a year to learn the principles of actions to be taken in theevent of a disaster, safety confirmation methods, methods ofgathering disaster-related information. Also, during the periodof COVID-19 pandemic, which started in 2020, we learned
the effectiveness of the safety confirmation system for flexible
workstyles such as homeworking and teleworking.
Promoting the Acquisition of Authorization of Workers forHigh Elevation Work Safety
We encourage our engineers to obtain the “Authorization ofworkers for high elevation work safety (Access system)” or “Authorization of workers for high elevation work safety (Network
system)” so that they can work safely and reliably in high places.

comprises: “swift response to legal regulations and customer
demands,” “raising customer satisfaction by enhancing thequality of products and services as well as construction (while
realizing efficient production and services),” and “maintaining
and improving QCD through quality risk reduction.” Specificprocesses, procedures, and decision criteria are defined ininternal rules and regulations for the realization of the policy.
Mobile terminals are used in checking and verifying the qualityof the respective tasks. Also, the achievement status of targets set by each group company based on the nature of theirbusiness (number of facility accidents, number of problems
reported after inspection, customer satisfaction evaluation
score, etc.) is reviewed for reflection in the subsequent fiscal
year and beyond.

Values & Vision

The MIRAIT ONE Group aims for “Building and Maintaining a Safe, Secure, and Prosperous Society” through its effort inGroup Materiality of “Safety and Quality Improvement” and “Co-creation of social value through collaboration with partners.”
Thus, in order to enhance business opportunities to realize continuous improvement of corporate value, the Group seekstalented personnel and improved brand power through the pursuit of safety and quality, and works to form and expand an
ecosystem by increasing co-creation partners.

* For details, visit our website (https://www.mirait-one.com/english/info/000213.html).

ISO 9001-Conformant Quality Management System
The Group builds and operates a quality management system in compliance with ISO 9001, and our Quality Policy
Integrated report 2023

40

Building and Maintaining a Safe, Secure, and Prosperous Society

Purpose/Mission, Stakeholders in view
PurposeCo-creating an exciting future through challenges and technology

Constantly refining our technology and business model to add more value

Customers

Shareholders and investors

Building and maintaining future social infrastructure with our partners

Employees

Continuing to be a trusted company through improved sustainability and strict compliance

Overall society

Shared values and communication channels in stakeholder engagement
Customers
Shared values
Communication channels

41 MIRAIT ONE Corporation

Measures against changes of thetimes and social problems
Domestic/Overseas business offices
and workplaces

Shareholders and investors

Partners

Premise for the next period prospect, impact on new medium-term business plan if any, progress status, evaluation of and employees’ reaction so far to the Group after themerger of three companies, philosophy of new KPIs related to shareholder returns and capital policy, change of employee wages, and possibility of disclosure of profits ofindividual businesses

Business trend

Prospect of businesses that will come after advanced wireless environment promotion projects, conditions and prospect of near-term order reception from telecommunications
carriers, profit rate, matters related to SEIBU CONSTRUCTION (contribution to profit, synergy effects), conditions and future prospect of global businesses, financial and M&A
strategies, and ESG initiatives (GHG reduction plan, current human resources mobility, and diversity of directors)* For the content of dialogue with shareholders and investors, see the web site (https://ir.mirait-one.com/en/dialogue/index.html).

Building and Maintaining a Culture Where
People Respect the Diversity of Human Resources and Learn from Each Other

Respect for Human Rights
The MIRAIT ONE Group has launched group-wide efforts to earn the utmost satisfaction and trust of its customers
based on its primary Mission (public mission) of creating a better environment where people and society can coexist
in harmony. The Group believes that its sustainable growth and corporate value enhancement in the future can only beachieved through understanding the human rights of all stakeholders involved in the corporate activities and by fulfilling
its group-wide responsibility to respect human rights.
MIRAIT ONE Group Establishes Basic Policy on Human Rights
In July 2022, the Group established the “MIRAIT ONE Group
Basic Policy on Human Rights” as its top policy on human rights
to send out a strong message of its commitment on the respectfor human rights and clearly identify its awareness within theGroup. The Group is dedicated to promoting actions on the respect for human rights in all its corporate activities in collaboration with various stakeholders. Based on the concept describedabove, the Group has emphasized “Respect for Human Rights
and Promotion of Diversity and Inclusion” as one of its material
issues. Based on this policy, all employees of the Group will act
with an awareness of respect for human rights as the foundationof all its business activities, as we aim to build a company that is
widely trusted by all members of society and contributes to therealization of a sustainable society.
Articles of MIRAIT ONE Group Basic Policy on Human Rights

Partners

Creating an attractive corporate culture with a diverse and dynamic workforce

Medium-term Management Plan

Employees

Improvement of corporate value

Human capital growth, businessgrowth, and sustainable growth

Growth of the company and individuals

General meetings of shareholders,
results briefing, and other various
meetings

MIRAIT ONE Partners, domestic/overseas business locations

Various opportunities of dialog,
one-on-one meeting

1. Basic approach on human rights
2. Compliance with laws and regulations and respect for humanrights codes
3. Scope of application
4. Execution of human rights due diligence
5. Remedial and corrective measures
6. Education and awareness activities
7. Dialogue and consultation with stakeholders
8. Promotion system

Promotion System
To ensure that all officers and employees understand and respect human rights issues involving all corporate activities, the“Human Rights/D&I Committee” has been established under
the ESG Management Promotion Committee, chaired by the
President and CEO (see page 33). The committee reports on
risk situations related to human rights and diversity, discusses
issues and measures to be addressed, and works to strengthen human rights management and promote diversity and inclusion measures.
Examples of Actions Taken
The Group takes the protection of workers' rights seriously
by never using child labor or forced labor and paying wages
above the minimum wage level mandated by law. Even in extremely adverse business situations, the Group has made every effort to maintain the employment of its employees and has
never dismissed any employee by nomination or liquidation.
In addition, we have conducted stratified training andcompliance promotion activities to raise awareness of humanrights. Three types of hotlines, the “Compliance Meyasubako,”“Nandemo Sodanshitsu (consultation window for anything),”and “External Reporting Line,” are on standby for problem-solving while giving due consideration to whistleblower
protection.

Integrated report 2023

Data

Mission Stakeholders in view
Meeting customer expectations and contributing to realize a prosperous society

Opinions and questions

Corporate GovernanceIn the process of growth in MIRAI (future) domains such as “urban and regional development/Corporate DX and GX”
and global businesses, customer segments expanded from conventional telecommunication carriers to local governments and private enterprises, and collaboration partners will also significantly increase. So, the Group will strength
stakeholder engagement mainly in efforts toward the Purpose (meaning of existence) and Mission (public mission),
which defines the Group stance toward different stakeholders.

Item

Results and evaluation Prospect of the result of this term, and external environmental factors (materials, sharp rise of energy costs, logistics disruptions, and exchange rate fluctuations)Sustainability Management

Dialogue with Stakeholders

in dialogue with shareholders and investors. They are fed backto the management personnel for the improvement of management and the strengthening of engagement.

Major interests raised in dialog with shareholders
and investors
Listed below are major opinions and questions that we received

Value Creation Strategy

New Value Creation through Open Innovation
The MIRAIT ONE Group has focused on the implementationof advanced technologies in the telecommunications, ICT,and other fields in social infrastructure as a growth driver. The
Group will continue its dedication to open innovation together
with startup companies and others in and outside of Japan
to contribute to value creation in leading-edge fields and theresolution of social issues.
In November 2022, we started the development and trial operation of an electric scooter charging station (autonomous power supply equipment) using our independent-typesolar-power charging kit in collaboration with BRJ Inc. (BRJ,

hereafter), a company that provides an electric scooter sharing service. BRJ receives investment from a venture capitalfund “B Dash Fund No.4, Investment Limited Partnership” that
the Group invests in. With the philosophy of giving consideration to safety and security and contributing to environmental issues through remote monitoring and control of electricscooters and related services, the Group is working to solve
problems of public transportation in the field of micro-mobility.
This trial operation is a business collaboration demonstration
experiment for the realization of carbon neutrality in the fieldof micro-mobility, and is conducted as one of the solutions forvarious regional issues in “urban and regional development”
that the Group engages in. The Group conducts the projectaiming for the fusion of our various engineering capabilities
including the construction of energy-related facilities and advanced wireless ICT solutions to create new solutions. Moving forward, the Group will actively drive the initiatives for thecreation of synergy and new values together with prospective
start-up companies through open innovation.
In January 2023, the Group organized the Alliance Business
Department in order to accelerate the creation of businesses
related to “urban and regional development/Corporate DX and
GX” businesses with an eye on social implementation of new
information and communication platforms such as IOWN (Innovative Optical and Wireless Network), leveraging engineeringknow-how that the Group has cultivated in the fields of telecommunications infrastructure and ICT. Moving forward, the department will also engage in the collaboration with alliance partners
through various open innovations to develop businesses that
contribute to the convenience and wealth of society.

Values & Vision

Making “Declaration of Partnership Building”
The Group has been building and maintaining telecommunication infrastructure, which plays a part in ensuring safe andsecure society. Under the recognition that the most important
thing for us to build and maintain future social infrastructureis the co-creation with partners, the Group will proceed withthe co-creation of social values based on fair trade and partnership, aiming for continued contribution to the solution ofsocial problems in an even wider scope of social infrastructure.
In March 2023, the Group made “Declaration of Partnership
Building” to enhance co-creation with partners aiming for sustainable society and the improvement of corporate value.

42Building and Maintaining a Fair and Transparent Corporate Group

Messages from Outside Directors

Enhancing Corporate Governance

As an outside director, I will support the Group’s effort of responding
to social needs and changes of the times.

Established Nomination andCompensation Committee
Appointment of female
Director (corporate auditor)

Established a“Forum for deliberations”

director (Three outside
directors)

Addition of
Performance-linked
Compensation KPI (ROE)

7/19 (36.8%)

Outside directors/Audit and Supervisory Committee

3/5 (60.0%)

Women directors/Board of Directors

3/19 (15.8%)

Increase in the number ofoutside directors(Total of seven with three women)

Addition of Performance-linked
Compensation KPI (GHG emissions
reduction target)
Reinforcement of the audit
function by enhancing
the three-lines of defense

Ratio of outside directors and women directors (as of June 27, 2023)
Outside directors/Board of Directors—Started a new group management
as an operating holding company—

Established the “Audit Department”
as an independent organizations based on thethree-lines of defense, and dual reporting system• Engaging with shareholders
to improve the effectiveness of corporate governance.

Basic Approach

Governance Structure

Recognizing the importance of management as a socially-responsible company, the MIRAIT ONE Corporation has
established organizational structures and systems to ensuretransparency and fairness in decision-making. Building trusting relationships with all of our stakeholders including shareholders is positioned as the most important aspect of management.
We believe that effective corporate governance is essential
to building trust with our stakeholders. This is accomplished by• Protecting shareholder rights
and ensure shareholder equality,• Engaging appropriately
with non-shareholder stakeholders,• Disclosing information appropriately and ensure transparency,• Fulfilling responsibilities,
especially those of the board of directors, andWe are an audit and supervisory committee company, overseen by a Board of Directors, an Audit and Supervisory Committee, and Accounting Auditors.
We have set up a system for reciprocal cooperation where
the Audit and Supervisory Committee, together with an internal audit section and accounting auditors, each performs independent inspections.
Also, we are working to improve corporate value by
strengthening the governance and the internal audit structure
based on the policy of three-lines of defense, strengthening
corporate governance through a close liaison between the Audit and Supervisory Committee and the internal audit section,
improving the soundness and transparency of management,
and making quick decisions.

Corporate Governance■Governance Structure

General meetings of shareholders

Election/Dismissal
Election/Dismissal

Election/Dismissal

MIRAIT ONE (our company)
Board of Directors

Collaboration

Audit and Supervisory Committee
Directors who are members of Audit
and Supervisory Committee
Collaboration/
Reporting

Nomination andCompensation Committee

Internal Audit Department(Audit Department)
Audit

Directors(excl. Audit and Supervisory Committee members)

Audit/Supervision

Delegation/
supervision

Inquiry/Reporting
Instruction

ReportingPresident and CEO

Data

environment. These efforts are being made by sharing the Purpose
and Mission that were defined in 2022 and leveraging the strengthand human resources that the Group has had from before. There arealways failures when you take a challenge. I think the important thing
for an organization is to make scientific analysis and take measures,that is, an organization should make risk management to prevent a
fatal failure and careless mistakes, and learn from lessons to preventthe repetition of the same mistakes. It is said that diversity is one of
the factors that makes such risk management possible. The Board of
Directors of our Group is highly diverse involving outside directors, andhas the culture of finding and discussing issues from multiple pointsof view. I think that the group should leverage this cultural platform toenhance organizational capabilities of risk management and learning,
and thereby can cultivate a corporate culture in which each employee
can take challenges spontaneously, at ease, and with excitement, enabling the targeted reform and steady growth in business.
With my experience in manufacturing and management targetingoverseas markets in a manufacturer of the information and communication field, I will serve as an outside director with the motto of “becommitted and earnest” so as to contribute to the realization of theGroup Purpose: “Co-creating an exciting future through challenges
and technology.”

Transition to a Company with

Sustainability Management

SUEMORI Shigeru

Started evaluationof Board effectivenessEstablished
MIRAIT Holdings

Accounting Auditor

43 MIRAIT ONE Corporation

Outside Director, Audit andSupervisory Committee Member

20172019 Increased one outside Audit and Supervisory Committee

Value Creation Strategy

pation and Advancement in the Workplace. The percentage of womenin hired new graduates is rising fairly toward the target of the plan. On
the other hand, the percentage of women in management positions isstill low, although the first female executive officer marked a progress.
I consider that it is important to continue the cultivation of female executives through “MIRAIT ONE Group Mirai Juku” and other activities
and the realization of work-life balance through the promotion of workstyle reform.
The COVID-19 pandemic had a great impact on our lives. There
has been a rapid spread of workstyles that are not bound by locations of work. But it is not the only impact of the pandemic. The resultof a survey that I conducted shows that there are many people who
redesigned their lives during the period of the COVID-19 pandemic
with plans to move from urban areas to rural areas to realize desired
life careers. In order to make lives and careers in rural areas attractive, the preparation of information and communication infrastructure
is indispensable. As a company that has unique strength in information communication and civil engineering, we will be required to fulfill
its social responsibilities more than ever by adequately responding tochallenges such as “urban and regional development” and “DX/GX.”As an outside director, I will work to be of help to the development of
the Group, leveraging my experiences in administrative agencies anduniversities.

2016(KPI: Consolidated operating income)

TSUKASAKI Yuko

I will support the realization of business reform and the Purpose fromthe stand points of an Outside Director and an Audit and Supervisory
Committee Member.
I assumed the position of Outside Director Who is a Member of Audit
and Supervisory Committee when the MIRAIT ONE Group was bornin July 2022. This year was the first year in which the Group embarked
on the business structure reform aiming to go “Beyond a Telecommunications Construction Company” and the corporate governancereform as a company with an Audit and Supervisory Committee.
Compared with a company with company auditors, a company
with an Audit and Supervisory Committee is considered to be an organization structure based on the monitoring model, and able to makequick decisions by entrusting important business decisions to Directors and focusing the function of Board of Directors on supervision.
Also, Directors who are members of Audit and Supervisory Committee
are in the position that makes both audit and supervision. This is thefirst time for me to be a Director who is a Member of Audit and Supervisory Committee. I feel that looking at management from two standpoints while also attending Board of Directors meetings is meaningful
for understanding issues more deeply. I think transparent and active
discussion currently made in Board of Directors meetings constitutes
a good governance platform for achieving the steady growth of theGroup from two reforms that the Group engages in. I consider that thenext challenge of the Group is to improve the effectiveness of governance including partner companies.
In order to succeed in two major reforms that the MIRAIT ONE
Group aims at, efforts are in progress for the strengthening of governance as well as the enhancement of business in new fields such as“urban and regional development” and “DX/GX,” which are big business opportunities that emerged with the change of the market and2010

Outside Director, Member ofNomination and Compensation
Committee

Introduced
performance-linked
compensation system

Establishment of MIRAIT ONE

Values & Vision

I assumed the position of Outside Director in July 2022, when theGroup took a new step as the MIRAIT ONE Group. For the Group,
which builds and maintains information and communication infrastructure indispensable for our daily lives, the strengthening of corporate
governance is an important issue in order to respond to social needs
adequately with the aim of “Beyond a Telecommunications Construction Company.” Looking back on this year, the Group has operated
business in the new corporate structure, paying attention to the effectiveness of the corporate governance code, and has actively madeadvance explanation and site tours for outside directors to provide
them with deeper understanding of the background and important
points of resolution items of the Board of Directors meetings. Also, active discussion was made in the Nomination and Compensation Committee chaired by an outside director. In addition, in the regular opinion
exchange meetings of outside directors, people from relevant departments join us to exchange opinions on a wide range of subjects. I feelthat these activities add to fruitful discussions in Board of Directors.
Upholding “People-centric management,” the Group considers that
it is the foundation of growth that each and every employee develops
skills and fully exerts competence they have. In addition to systematiclearning in Mirai College, I think it is important to pass down skills in
daily work from seniors to juniors and to encourage and maintain free
and active communication in workplaces in order to steadily proceedwith “People-centric management.” As for the promotion of diversity,
which is one of the mainstays of “People-centric management,” theGroup set forth a general employers’ action plan in July 2022, basedon the Next-generation Act and Act on Promotion of Women's Partici-

2018

Transition to a stronger governance system

2022

2021

(Group Presidentsʼ Council/Executive Committee)

Reporting

Various Committees
Internal audit

ESG Management Promotion Committee
Risk Management Executive Committee
Compliance Executive Committee
Human Rights/D&I Committee

Instruction

ReportingCorporate Strategy Division and other administrative sections, companies, and branch offices

Audit

SurveyAudit/Reporting

Business Management

Consultation/Reporting

Companies of MIRAIT ONE Group

Integrated report 2023

44

Building and Maintaining a Fair and Transparent Corporate Group

Policy and Procedures for the Nominationof Candidates for the Board of Directors■Overview of Established Corporate Bodies
Name

Purpose/Authority(No. of meetings held in FY 2022)

Nomination andCompensation Committee(10)

Body established as an advisory committee for the Board of Directors for the purpose of heightening the objectivity in mattersrelated to the nomination and compensation of directors
Reports on audits of Directors’ execution of duties, etc., andresolutions on important matters related to audits* Audit Committee until June 2022 (4)President and CEO

Directors who are not
Audit and Supervisory
Committee members

TOTAKE Yasushi, TAKAHASHI Masayuki, MIYAZAKI
Tatsumi, TAKAYA Yoichiro, WAKIMOTO Hiroshi,
MITSUYA Takaaki, IGARASHI Katsuhiko, OHASHI Hiroki,
TAKAGI Yasuhiro, BABA Chiharu, YAMAMOTO Mayumi,
KAWARATANI Shinichi, TSUKASAKI Yuko

Directors who are
Audit and Supervisory
Committee members

YAMAMOTO Yasuhiro, AOYAMA Koji, KATSUMARU
Chiaki (ISHIKAWA Chiaki), SUEMORI Shigeru,
HAYAKAWA Osamu

Director

YAMAMOTO Mayumi, KAWARATANI Shinichi,
TSUKASAKI Yuko, NAKAYAMA Toshiki

NAKAYAMA Toshiki

Director (Outside)

BABA Chiharu
Director, Audit andSupervisory Committee
Member

YAMAMOTO Yasuhiro* The rationale for selection of each director is outlined in the “Notice of general meeting ofshareholders.”

AOYAMA Koji (Full-time), KATSUMARU Chiaki (ISHIKAWA
Chiaki), SUEMORI Shigeru, HAYAKAWA Osamu

Audit and Supervisory
Committee Members

Executive Committee(19)

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

ESG Management
Promotion Committee(5)

Formulate basic ESG policies and strategies for the entire
Group, promote various measures, and receive reports on
matters delegated by subordinate subcommittees (RiskManagement, Compliance, Human Rights/D&I)

President and CEO

NAKAYAMA Toshiki

President and CEO

NAKAYAMA Toshiki
President and CEO

NAKAYAMA Toshiki

Business Company COO, Strategy Headquarters Manager of Business Company,
President of Major Group Companies, Strategy Headquarters Manager of Major
Group Companies, Frontier Business Headquarters COO/CDO, 1st Department
Manager of Stuff Department, Directors who are Audit and Supervisory Committee
members (Full-time)
Business Company COO, President of Major Group Companies, Frontier Business
Headquarters COO/CDO, 1st Department Manager of Stuff Department, Directors
who are Audit and Supervisory Committee members (Full-time)
Business Company COO, President of Major Group Companies, Frontier
Business Headquarters COO/CDO, 1st Department Manager of Stuff
Department, Directors who are Audit and Supervisory Committee members(Full-time)* Directors: BABA Chiharu, YAMAMOTO Mayumi, KAWARATANI Shinichi, TSUKASAKI Yuko, KATSUMARU Chiaki (ISHIKAWA Chiaki), SUEMORI Shigeru, HAYAKAWA Osamu are outside directors.

■Status of Accounting Auditor
Name of audit
Continuous
corporation auditing period

9 years

Composition of assistants involved in accounting
audit work

Certified accountant who executed the independent audit

Designated limited liability partner, business execution partner, certified public accountant, NAGASAKI Yasuyuki
Designated limited liability partner, business execution partner, certified public accountant, KOBAYASHI Keiji
Designated limited liability partner, business execution partner, certified public accountant, NAKAMURA Kohei

Certified public accountants:
Accountant exam passers, etc.
Others:

16 people
10 people
15 people* The above assistants include those involved with MIRAIT Corporation and MIRAIT Technologies Corporation from April 2022 to June 2022.

Internal

TOTAKE Yasushi

Internal

TAKAHASHI Masayuki Internal
MIYAZAKI Tatsumi

Internal

TAKAYA Yoichiro

Internal

WAKIMOTO Hiroshi

Internal

MITSUYA Takaaki

Internal

IGARASHI KatsuhikoInternal

OHASHI Hiroki

Internal

TAKAGI Yasuhiro

Internal

BABA Chiharu

OutsideYAMAMOTO Mayumi

OutsideKAWARATANI Shinichi Outside
TSUKASAKI Yuko

OutsideDirectors who are membersof Audit and Supervisory
Committee

YAMAMOTO Yasuhiro Internal
AOYAMA Koji

Internal

KATSUMARU Chiaki(ISHIKAWA Chiaki)

OutsideSUEMORI Shigeru

OutsideHAYAKAWA Osamu

Outside●●●Sales/Marketing

●

●

●

●

●

●
●
●
●
●

●

●

●
●

●

●

●

●
●

●

Construction/
Operation ofCommunication
Facilities, etc.

Technology/
Innovation/
DX

●

●

●

●

●

●

●

●

●

●

●

●

Global businesses

New Business
Development

Personnel/Labor/
HR Development

●

●

●

●

●

●

●

●
●

Legal/Risk
Management/
Compliance/
Governance

●

●
●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●
●

●

* The criteria for determining the independence of outside directors of the Company andthe status of their activities are provided in the “Corporate Governance Report” and otherdocuments.

Board Structure that Balances Diversity in
Gender, Internationality, etc. and Appropriate Size●●●

Public Policies/
Academic Research●●* The above does not represent all the knowledge and experience of the individuals.

Financial Accounting/
Finance

●
●

●

●

●

●

As a business holding company that oversees various business fields, the Company ensures that the composition of theBoard of Directors is well-balanced by appointing individuals
with a wealth of experience and superior knowledge in various specialized fields, such as business strategy, international
strategy, finance, and personnel affairs.
In addition, the Company aims to ensure transparency andenhance corporate value by having individuals with many years
of practical experience in corporate management, experts incorporate legal affairs and finance, and academic experts join
the Board of Directors as outside directors and provide an outside perspective.
As for the size of the Board of Directors, we have achieved
greater effectiveness and efficiency by functioning sufficiently
as a business holding company while at the same time having some board members who also serve as directors of core

Efforts to Ensure the Effective Implementation of
Audit and Supervisory Committee Member
In addition to inspecting significant approval documents, Audit
and Supervisory Committee Members attend meetings of theGroup Presidents’ Council, the Executive Committee and otherkey meetings. This involvement helps them to keep track of thecompany’s major decision-making processes and the progressof business execution. In addition, Audit and Supervisory Committee Members, CEO, Accounting Auditors, and others communicate with each other and exchange opinions to ensure thatthe audits of Audit and Supervisory Committee Members are
conducted effectively.
The Company has established the Audit and Supervisory Committee Office with full-time staff to assist the Audit andSupervisory Committee in its duties, and three individuals havebeen assigned to this office.

Data

Directors who are non-members of Audit and Supervisory Committee

NAKAYAMA Toshiki

Corporate
Management/
Business
Strategies

In accordance with the “Regulations of the Board of Directors,”
the Board of Directors meets once a month and as needed, andheld 22 meetings in FY 2022. The meetings of the Board of Directors deliberate on all matters to be discussed at the meetingsof the Board of Directors in accordance with the Internal Regulations and actively exchange views on each matter, as well as
receive quarterly reports on the status of the performance of
duties by each director. To further improve its functioning, theBoard of Directors is subject to an evaluation of its effectiveness.
Also, in light of the Corporate Governance Code, the “Nomination and Compensation Committee,” a voluntary advisorycommittee, was established under the Board of Directors toenhance the objectivity of nomination and compensation. The
Committee met ten times during FY 2022.
Independent outside directors hold regular meetings withrepresentative directors to strengthen the monitoring function
for the execution of duties by directors.

Corporate Governance■Skills Matrix for Directors

For outside directors, we appoint individuals who have abundant experience and knowledge across different fields who can
perform their roles and duties with a specialized and objective
viewpoint by providing guidance and management oversightfrom the perspective of enhancing the Company’s medium- tolong-term corporate value. For independent outside directors
who serve on the Audit and Supervisory Committee, we appoint those who have abundant experience and knowledge
across different fields and who can properly supervise theBoard of Directors’ managerial decisions, execution of duties,
and compliance with laws and regulations with independentand objective views, thereby enhancing the transparency of
the Board of Directors and serving greater corporate value.
Outside directors attend meetings, including Board of Directors meetings, to understand the Group’s management issues.
In addition, they offer their opinions from their respective
professional and objective viewpoints as needed, and strive
to ensure transparency and efficiency in management by exchanging views with other directors.

Efforts to Ensure the Efficient Executionof Duties by Directors

Sustainability Management

Body to receive reports and deliberate on vital policies about
important matters related to management policies (mainly
concerning business)

45 MIRAIT ONE Corporation

Effective use of outside directors(full time)Group Presidents’ Council(35)

KPMG AZSALLCIn the process of nominating candidates for the Board of Directors, the MIRAIT ONE Corporation selects a wide variety ofcandidates from both inside and outside the company, consultswith the Nomination and Compensation Committee, which ischaired by an independent outside director, and determines
the candidates who have excellent personalities, superior insight and high managerial capabilities, at the Board of Directors’
meetings based on the responses from the Committee.

Value Creation Strategy

Audit and Supervisory
Committee(10)

Body to resolution on legal matters related to managementof the company, determine fundamental management policy
and important matters concerning the execution of business,in addition to oversee the execution of duties of Directors

Members

Values & Vision

Board of Directors(22)

Representative/ChairGroup companies.
The Company has appointed four women executive officers: two directors who are not members of Audit and Supervisory Committee, one director who is a member of Audit andSupervisory Committee and one executive officer.
The expertise and experience required of directors areshown in the “Skills Matrix for Directors.”

Appraisal of the Effectiveness of the Board of Directors
Board meetings serve as a platform for assessing the performance of directors, including compliance with laws and regulations, the status of risk management and information sharing,and the prompt resolution of issues. The Company is also committed to enhancing the effectiveness of the Board by holding
meetings between representative directors and outside directors.
In addition, once a year, all directors are subject to aself-assessment of the effectiveness of the Board of Directors

Integrated report 2023

46

Building and Maintaining a Fair and Transparent Corporate Group[Measures Having Been Taken]
The Company has actively sought to maintain and improvethe effectiveness of the Board of Directors on an ongoing basis. This is achieved by fostering in-depth discussions within
the Board through the Deliberation Forum (established in FY2017), where members of the Board of Directors can have an
open and frank exchange of views on medium- to long-termbusiness strategies and management issues.
Overview of the Effectiveness Assessment for FY 2022

[Measures Being Taken]
Prior to deliberations at Board meetings, the Company is actively working to intensify discussions at Board meetings byproviding additional opportunities for preliminary briefings andexchanges of views with representative directors, in addition
to the existing “Deliberative Forum.”

We provide an executive officers’ training program for directors
to deepen their awareness of their roles and legal responsibilities
on a regular basis. Beginning in FY 2023, the Company has established a systematic and regular series of executive seminars
for directors and executive officers of the MIRAIT ONE Group.
These seminars serve multiple purposes, including: (1) instillingand strengthening basic management skills appropriate for aprime market company; (2) providing opportunities to develop
a comprehensive understanding of the market, technology and

47 MIRAIT ONE Corporation

Basic Policy
With regard to the compensation of directors (excluding thedirectors who are Audit and Supervisory Committee Members.
The same applies below), the total amount (limit) is set by theGeneral Meetings of Shareholders after approval by the Boardof Directors, and each director receives compensation in accordance with their roles and responsibilities.
Also, with regard to the policy for deciding the compensation of each director, for the purpose of enhancing objectivity
and transparency, the “Nomination and Compensation Committee” (chaired by an independent outside director), which isan advisory body to the Board of Directors and consists of four
independent outside directors and the President and CEO, reports the results of its deliberations to the Board of Directors,
which then makes decisions based on the report.
Outside directors, who are responsible for supervisory
functions, are paid only monthly basic compensation in light of
their duties.
* Details of compensation for executive officers are provided in the “Securities Report.”

Monthly Compensation
Variable Compensation(Fixed Compensation)80%

Non-monetary Compensation

20%

6%

* In consideration of insider trading regulations, etc., and in order to heighten managementawareness and the common goal of increasing shareholder value, directors (excluding
outside directors) are required to contribute at least 10% of their monthly compensation
to the Executive Officers’ Stock Option Plan, which effectively changes the percentages:
72% for fixed compensation, 28% for variable compensation, and 14% for non-monetarycompensation (stock-based compensation).

Matters Concerning Delegation of Authority for
Determining Compensation, etc. of Individual Directors
For FY 2022, it has been resolved that the decision on the amountof basic compensation for each director and the amount of bonuses based on the business performance of each fiscal year
would be left to President and CEO NAKAYAMA Toshiki, on theunderstanding that the Nomination and Compensation Committee would be consulted within the range of the total amountapproved at the General Meeting of Shareholders, based on
the resolution of the Board of Directors on June 14, 2022. The
reason for this delegation of authority is that the President and
CEO is considered to be the most qualified person to evaluate
the performance of each director's duties while having a bird’s
eye view of the Company’s overall business.
■ Total Amount of Compensation for Each Executive Class, Total Amountof Compensation by Type, and the Number of Eligible Executive Officers
Executive Class
Directors(excluding Audit and Supervisory Committee Members and Outside Directors)

Audit and Supervisory
Committee members

Number of
Total Amount Total Amount of Compensation
by Type (million yen)
Eligible Execof Compensation
Fixed
Performance-linked utive Officers(million yen) Compensation
Compensation(Number)
206

155

50

14

31

31

–

2

(excluding outside auditors)

Introduction of Performance-linked Compensation System
The Company has introduced the “Board Benefit Trust,” aperformance-linked stock compensation system, to clarify thelink between the compensation of executive officers and theCompany’s business performance and stock value, and toincrease awareness of their contributions to the Company’s
performance and value over the medium to long term.
As for the indicators for performance-linked compensation,
the Company has chosen the degree of achievement in areas
such as the “consolidated operating income,” “ROE,” and “ESG
indices.” These metrics were selected for their ease of understanding and are designed to raise awareness of one's contribution to improving the Group's consolidated performance andcorporate value. A benchmark was established by allocating
30% of the monthly compensation for a period of three months

Auditors

6

6

–

2

Outside executive officers

67

67

–

9

(excluding outside auditors)* The compensation paid to the auditors relates to the period prior to the transition to anaudit and supervisory committee company. Meanwhile, the compensation paid to directors
who are Audit and Supervisory Committee Members relates to the period after the transition to a company with an Audit and Supervisory Committee.

Total Amount of Consolidated Compensation, etc. for
Each Executive Officer
This information is not provided because no executive officer
received a total of 100 million yen or more in consolidated
compensation, etc.

Transactions among Related Parties
The Company requires that competitive transactions and conflict-of-interest transactions conducted by directors be delib-

Strategic Shareholdings
Criteria and Concepts for Classification of Investment Shares
The Group classifies investment securities as held for purposes other than investment if they fall into one of the following
categories:
A. Maintaining and strengthening business relationships
with the investee company
B. Maintaining and strengthening cooperative relationships
to promote alliance business
C. Cooperation aimed at facilitating efficient construction
and similar purposes
Investment securities for other purposes are classified andheld as securities for investment only.
Methods of reviewing the holding policy and rationality ofinvestment shares held for purposes other than investment,
and details of the review by the Board of Directors, etc. ofwhether or not to hold individual issues
A. Holding policy
Our Group holds shares of its business partners when it believes that holding such shares will enhance the Group’s corporate value and benefit its shareholders. After reviewing the
purpose of holding shares and the status of transactions, etc.,
if the holding of such shares is deemed to be of little significance through quantitative and qualitative review, the Company will gradually reduce the holding through divestment, etc.
B. Methods of verifying the rationality of shareholding
The Company conducts quantitative and qualitative review ofinvestment shares held for non-investment purposes in termsof medium- to long-term economic rationality and future prospects based on return and risk, etc.
C. Details of review by the Board of Directors, etc. as towhether or not to hold individual issues
With regard to investment shares held by the Group for purposes other than pure investment, the Company conducts areview of the purpose of holding such shares, the status oftransactions, etc., and determine whether or not to continue
holding such shares by reviewing each individual issue quantitatively and qualitatively once a year at a meeting of the Board of
Directors, in terms of whether the returns and risks associatedwith the holdings are commensurate with the cost of capital, thepurpose of the holdings, future business trends, etc.

Integrated report 2023

Data

Training of Directors

Compensation, etc. of Executive Officers■ Percentage of the Amount of Monetary Compensation and
the Amount of Performance-linked Compensation, etc.

Corporate Governance[Major opinions]
In order to facilitate more substantive discussions aimed atincreasing corporate value over medium- to long-term, theManagement Executive Committee needs to explore specificissues related to identifying issues at stake, sharing information, narrowing the agenda, securing time for deliberation,and delegating the execution of business execution.
↓

The Company appropriately plans and develops successors
for the CEO and other senior executive positions based on its
management philosophy and business strategies. The Nomination and Compensation Committee, chaired by an independent outside director, is consulted on the appointment of theCEO, and the Board of Directors votes on the appointment
based on the report of the Nomination and Compensation
Committee.

erated and approved by the Board of Directors, and that thestatus of such transactions be reported to the Board of Directors on a regular basis.
The requires executive officers to submit a “Statement ofConfirmation by Related Parties” to identify any transactions
with related parties, including themselves, their immediatefamily members, organizations they represent, and organizations in which they have majority voting rights.
With regard to transactions with major shareholders, theinternal regulations require the person with decision-making
authority to confirm the appropriateness of such transactions
to ensure that they are not detrimental to the Company or tothe common interests of the shareholders, and to report particularly important transactions to the Board of Directors.

Sustainability Management[Major opinions]
Following the establishment of the new consolidated corporation in July 2022, it is imperative to have more in-depth
discussions on the composition of the Board of Directors, therole of the Nomination and Compensation Committee, andthe restructuring and effective operation policy of the Groupwide risk management framework.
↓

Planning and Developmentof Successors for the CEO, etc.

in accordance with the “Internal regulations on issuing shares
to executives.” Under the point system, the number of points
is calculated by multiplying the performance-linked coefficient
determined by the level of achievement of the Company's “consolidated operating income,” “ROE” and “ESG Indices.” Upon
retirement, one share is granted for each point earned.
Also, in FY 2022, the Company introduced the “GHG reduction target” into the set of indexes for performance-linked
compensation as a consolidated ESG index to raise awarenessof ESG initiatives among management personnel.

Value Creation Strategy

Overview of the Effectiveness Assessment Madein FY 2021 and Results of Measures Taken

global trends including global conditions; and (3) aligning thedirection of the directors and executives.
In addition, outside directors and other relevant persons
are given the opportunity to visit business establishments andconstruction sites as appropriate, so that they can deepen
their understanding of the Company’s business operations
and current conditions.

Values & Vision

with the aim of improving the functioning of the Board of Directors as a whole and sharing awareness of the direction inwhich our corporate governance is headed.
More specifically, the self-assessment is conducted throughan anonymous questionnaire to ensure that candid opinions
are heard, and the questionnaire consists of major assessment
items asking about the structure, operational status, responsibilities and functions of the Board of Directors and the state of
the Board of Directors from the perspective of outside directors.
The responses are collected by an external law firm under aconfidentiality agreement and analyzed by a third party. Basedon the results of this analysis, the Board of Directors has reviewed and evaluated the current situation, which produced
favorable results. The Board of Directors continues to discussmatters pertaining to the Board.

48

Building and Maintaining a Fair and Transparent Corporate Group■Changes in investment securities(Unit: 100 million yen)

Shares of affiliated companies

Shares of non-listed companies

Strategic Shareholdings

301

271

Shares of listed companies

40

40

225

15

40

March 31,2019

March 31,
2020

（

3,314

3,521

3,587

（7.4%）

Strategic
shareholdings
ratio

March 31,2022

March 31,
2023

1,995

4,357

（5.2%）） （11.6%） （11.9%）

Net assets

89* Shares of non-listed companies include strategic investments.

） （7.0%）Strategic
shareholdings
ratio

March 31,
2021

20*

105

2,187

4,367

（2.8%）

2,313（2.5%）

2,492（8.0%）

2,543（4.9%）（4.3%）

Gain on sales ofinvestment securities(Unit: 100 million yen)

46
FYE
March 31,2021

FYE
March 31,2022

FYE
March 31,2023

Efforts to Enhance Communication
The IR Department undertakes investor relations activities as thedepartment in charge of investor relations under the supervisionof the Director and Chief of Finance and Accounting Division,(1) Training
Given the increasing importance of compliance in driving the company's business, we are actively engaged in raising awareness of
the importance of compliance. This is achieved through consistentcommunication on compliance in training for executive officers, fordifferent job levels, and with partner companies.
(2) Development of Internal Reporting System
The Company has established a system to receive warnings and consultations from personnel, including directors, employees, non-regular
employees, dispatched members, and retired workers within one yearof retirement in the Company, Group companies, and partner companies.
1. Compliance Meyasubako
As part of our whistleblower program, we encourage the reportingof potential issues related to fraud, misconduct, improper accounting, embezzlement, bribery, bid rigging, corruption and other compliance violations. This proactive approach enables us to identify
internal risks in their early stages and take steps to mitigate thoserisks and prevent violations.
2. Nandemo Sodanshitsu (consultation window for all matters)
This service, which handles a wide range ofconsultations including working conditions
and human rights (including harassment),
allows us to actively listen to the opinions
and suggestions and take steps to resolve
problems.
3. External consultation desk
We have established an external consultation window, staffed by legal experts, toprovide assistance in cases where employees have difficulty seeking internal advice.

Due Payment of Taxes
The Group complies with the tax laws and regulations specificto each country and region in which it operates, as well asinternational taxation rules such as the BEPS* Action Plan. We
are committed to maintaining and improving tax complianceand ensuring the payment of fair and due taxes.
* BEPS: Base Erosion and Profit Shifting

Data

Our company discloses accurate and timely information
through TDnet and EDINET in accordance with the Disclosure
Policy, which is published separately. We also actively use media such as our corporate website (https://www.mirait-one.
com/english/) and press releases to further disseminate information. We also strive to provide beneficial information that iseasy for shareholders and other investors to understand, suchas the materials used in our IR activities.
In our dealings with all shareholders and other investors,
we will fully and properly manage information in accordancewith “Rules on insider trading regulations” when we are in possession of material information that has not yet been disclosed
to the public.

With regard to the conduct of general meetings of shareholders, we are making efforts to facilitate the understanding ofshareholders by, for example, printing the convocation noticein color and incorporating video presentations into the delivery of business reports. The convocation notice, reference
documents, and reports are also available on the Company’s
website.
The notice for the 13th Annual General Meeting of Shareholders, scheduled for June 27, 2023, was sent on June 9,2023, 18 days prior to the meeting (the legal date is June 12,2023). On June 1, 2023, (26 days prior to the General Meeting of Shareholders), the Company initiated electronic delivery
measures on the Tokyo Stock Exchange and the Company's
website (the legal date was June 6). This was done to ensurethat shareholders had sufficient time and access to information to exercise their voting rights. Should there be a needfor additional information, it will be posted on the Company's
website.
In order to deepen the understanding of shareholders andothers who were unable to attend the meeting, the business
report was posted in video format on the Company’s website
in advance, and the meeting was streamed live on the day ofthe meeting. The video of the meeting is also made available
after the meeting for shareholders who were unable to viewthe live stream.

Setting forth the slogan “Give importance to sustainability andcompliance to respond to the expectations of society” as oneof its Missions (public mission) and focusing on “thorough compliance” as one of its Materiality items, the Group establishedthe “MIRAIT ONE Group Charter on Safety and Compliance”
to make sure all directors and employees understand that thorough compliance is a key to successful corporate management.
The Charter sets forth basic policies regarding “efforts tofoster morality,” “fair trading,” “information disclosure,” “elimination of relationship with antisocial forces,” and so forth, as
the top priority issues to be addressed.

Also, based on the “Compliance regulations,” the “Compliance Executive Committee,” chaired by a director in charge ofcompliance, met twice in FY 2022 under the ESG Management
Promotion Committee, chaired by the President and CEO, toshare information on individual issues and compliance-related
incidents and measures.
The internal audit section conducts monitoring to verify theeffectiveness of compliance promotion activities. In addition,
the MIRAIT ONE Group is committed to eliminating misconduct not only through operational audits, but also by designating Compliance Promoters within each organizational unit who
are tasked with monitoring their respective units for any signsof irregularities or deficiencies, including potential instancesof bribery. This approach strengthens the self-policing capabilities of each organization, resulting in early detection andprompt corrective action.
Furthermore, the Group conducts a yearly survey of employees regarding risks that they have heard about or believe
may arise in their daily operations, as well as their own andtheir departments’ compliance awareness, to help identify issues and consider countermeasures.
In FY 2022, SOLCOM Co., Ltd., a consolidated subsidiary,
was issued a cease and desist order by the Japan Fair Trade
Commission for violating the Antimonopoly Act. The company
submitted a report outlining the measures taken to investigate
the cause of the problem and to prevent its recurrence. The
company was informed that the corrective action report had
been reviewed and approved, signifying the successful completion of this order. The MIRAIT ONE Group will continue its
efforts to strictly adhere to all relevant laws and regulations, raise
employee awareness, and strengthen its compliance system.

Corporate GovernanceManagement of Insider Information
as well as Timely and Fair Disclosure

49 MIRAIT ONE Corporation

Status of measures to facilitate the operationof the General Meeting of Shareholders,
and the exercise of voting rights

33
11

FYE
March 31,2020

* For details of dialogue with shareholders and investors, see the Company’s website(https://ir.mirait-one.com/en/dialogue/index.html).

Establishing Through Compliance as
Corporate Culture

Sustainability Management

（

69

16

173

[Reference]
Total assets

41

246

222

178

162

12

Thorough Compliance

Value Creation Strategy

9

who is responsible for the handling of information. Investor Relations managers personally consult with all of our shareholders
and other investors whenever possible. The Company holds financial results briefings twice a year for analysts and institutional investors and distributes the briefings on its website, etc. In
addition to providing timely and important information in English
to overseas institutional investors, we also conduct investor relations activities in the North America, Europe and Asia. As ageneral practice, our representatives make personal presentations at financial results briefings and at our overseas investor
relations activities to encourage constructive dialogue with all of
our shareholders and other investors.
In addition, to enhance understanding of our business,
we participate in online, live streaming company briefings forindividual investors, and, as appropriate, individual investor information sessions held by securities companies. Feedback
from shareholders and investors is provided to management
at meetings of the Board of Directors and the Group Presidents’ Council. Our dialogue with our shareholders can also
be found on the Company’s website. In addition, the Groupsends all shareholders twice a year the “MIRAIT ONE Report,”a booklet containing updates and highlights of the businessperformance.

Values & Vision

The Company will divest shares that, after review, are determined to make little sense to hold, taking into consideration
the share price and other factors. In addition, the Company will
use the annual review to manage the status of holding and reduction of investment shares held throughout the entire Groupfor purposes other than investment. Based on the above policy, etc., the Company divested 4 issues in FY 2022.

Thorough Risk Management
Handling of Risks
The Company has taken steps to ensure accurate and effective risk management by formulating “Risk Management
Regulations” to define essential matters concerning the risks
associated with the MIRAIT ONE Group.
The “Risk Management Executive Committee,” chaired by
the director in charge of compliance, was established under

the ESG Management Promotion Committee chaired by the
President and CEO to deliberate on risk management issues.
The committee met twice in FY 2022.
In addition, the internal audit section conducts monitoring
to verify the effectiveness of risk management.
As of the end of March 2023, the items listed in the tableon the following page are the main risks that we believe could
affect our business performance and financial position.

Integrated report 2023

50

Building and Maintaining a Fair and Transparent Corporate Group

Board Members
Development of Internal Control System■Thorough Risk Management
Major risks

TOTAKE Yasushi

Shares owned: 17,548

Shares owned: 9,017

No. of Board of Directors meetings attended
22/22 (100%)

No. of Board of Directors meetings attended
22/22 (100%)

Director
Senior Managing Executive Officer

Director
Senior Managing Executive Officer

TAKAHASHI Masayuki

MIYAZAKI Tatsumi

Shares owned: 12,903

Shares owned: 6,585

No. of Board of Directors meetings attended
13/13 (100%)

No. of Board of Directors meetings attended
13/13 (100%)

Director
Managing Executive Officer

Director
Managing Executive Officer

TAKAYA Yoichiro

WAKIMOTO Hiroshi

Shares owned: 3,003

Shares owned: 6,028

No. of Board of Directors meetings attended
13/13 (100%)

No. of Board of Directors meetings attended
13/13 (100%)

Measures(1) Excessive
dependence onparticular clients

The main clients of the Group are telecommunications carriers such as the
NTT Group. Owing to the fact that they account for a large portion of net sales,
their capital expenditures or technological breakthroughs and other factors
could affect the Group’s business results.

The Group is expediting the transition of its business structure from the telecommunications carrier business to the solutions business and shifting to“MIRAI (future) Domains,” which is positioned as new growth areas, as well as
creating new business opportunities beyond its traditional business domains
and technologies.

(2) Safety and quality
issuesIn the event of serious accidents, quality issues or other contingencies, there
may be severe consequences which may result in the loss of clients’ confidence and restrictions on the Group’s operating activities, affecting its business results.

The Group is therefore 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 and quality
management system.

(3) Management ofcritical information

The Group may access critical information, such as technical data and personal information provided by clients. In the event of unforeseen information
leakage or malicious use of such information, the Group may suffer liability
for damages and others with potential impact on its financial results. Such
event may also result in the loss of client’s confidence, affecting the Group’sbusiness results.

The Group is wholly committed to the prevention of leakage of classified information through the use of ISMS (information security management system).

(4) Uncertainties
regarding clients’credit quality

If uncertainties arise regarding the credit quality of a client, the Group may not
be able to receive payments for construction work or may be forced to delay
projects, which could affect the Group’s business results.

The 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.

(5) Material
procurement andprice hikes

In the event of difficulty in the material supply or delays in delivery due to natural disasters, war, terrorism, or epidemics of novel infectious diseases, or in theevent of rising construction costs due to soaring prices of raw materials, equipment and materials, and energy, construction projects may be suspended ordelayed. Furthermore, the Group's business performance may be affected if
clients hold back on investments or postpone investment decisions.

The Group meticulously manages the process to minimize the extension of
the construction period by, for example, prioritizing the processes that are notexperiencing shortages of supplies. In addition, measures are taken to mitigate
the risk of rising construction costs by incorporating into contract clauses theterms and conditions for raw material price increases, and by passing thehigher costs on to construction prices.

(6) Assets held by theGroup

The Group holds assets such as securities that are necessary for its business
operations. Significant fluctuation in market prices thereof could affect theGroup’s business results.

The Group adopts measures to avoid risks associated with fluctuations in valueof such assets, such as by assessing its securities holdings both quantitatively
and qualitatively and gradually reducing those that have less significance for
the Group’s business.

(7) Natural disasters,
etc.

The occurrence of contingencies such as severe natural disasters and the spreadof epidemic diseases could cause direct damage on the Group’s employees,
subcontractors and facilities, or cause outage of lifeline utility and fuel shortage.
In such an event, construction may be halted and the contracted construction
period may be delayed, which may affect the Group’s business results.

The Group has adopted countermeasures against events such as natural disasters including earthquakes and the spread of epidemic diseases, including
the formulation of a business continuity plan (BCP), establishment of a system
to confirm the safety of employees, conducting of evacuation drills, and adopting of new workstyles.

(8) Overseas
businesses

The Group operates businesses in countries outside of Japan, primarily in Asiaand Oceania. Significant changes in the political and economic climate, currency exchange rate and the legal and regulatory framework, or the spread of
epidemic diseases, or rapid rises in material prices and labor costs in thesecountries may affect the Group’s business results.

The Group is striving to prevent and mitigate such risks by gathering information within the Group and by appropriately diversifying the countries in which
the Group operates.

Director
Managing Executive Officer

Director

MITSUYA Takaaki

IGARASHI Katsuhiko

The Group clarified its commitment to “building and maintaining an environmentally friendly society” as its material issues. The Group also endorsed theTask Force on Climate-related Financial Disclosures (TCFD) to analyze risks
and opportunities in the Group’s business in line with its framework. Furthermore, we are working to identify greenhouse gas (GHG) emitted through ourbusiness activities and are committed to initiatives and other measures to reduce it and to further reduce industrial waste.

Shares owned: 4,485

Shares owned: 16,507(9) Climate changes

As problems caused by global climate change are becoming more apparent,
companies are required to give consideration to the environment mainly by
reducing greenhouse gas emissions and industrial waste. Such consideration
is often required of not only individual companies but also all companies inthe supply chain. If the Group companies and partner companies fail to takeappropriate measures, our business with suppliers may be restricted and theGroup’s business performance may be affected.

No. of Board of Directors meetings attended- (Newly appointed)

No. of Board of Directors meetings attended
22/22 (100%)(10) M&A

The Group strives to expand its business domains and transform businessmodels through M&A with which synergy effects are expected, with the aimof increasing corporate value of the Group. However, if outcomes such as the
profit growth and synergy effects expected from an M&A target company are notrealized, the Group’s business performance may be affected.

Before conducting an M&A, the Group carefully examines whether the M&A isin line with the Group’s growth strategy. We also consider the outlook for future
market trends, business plans, and synergies with the Group. In the post-acquisition integration process, the Group identifies the items to be implemented
and the timeframe for their achievement, strengthens monitoring, and works tomaximize synergy effects.

Director

Director

The Group is authorized and licensed under laws and regulations including theConstruction Business Act, Telecommunications Business Act, and Radio Act,and conducts its business activities in accordance with relevant laws and regulations in business operations. In the event of a violation of any of these laws, theGroup's business performance and credibility may be affected.

The Group closely monitors legal revisions and other developments in the relevant internal departments and promptly shares such information within theGroup, reviewing internal regulations as necessary. In addition, efforts are continuously made to ensure compliance with laws and regulations by conducting
awareness-raising activities for employees of the Group and partner companies,
and by establishing an effective internal audit and consultation system.

OHASHI Hiroki

TAKAGI Yasuhiro

Shares owned: 7,983

Shares owned: 7,620

No. of Board of Directors meetings attended
13/13 (100%)

No. of Board of Directors meetings attended
13/13 (100%)(11) Legal compliance

51 MIRAIT ONE Corporation

Data

Overview

Corporate Governance

NAKAYAMA Toshiki

Sustainability Management

Representative Director
Senior Managing Executive Officer

Value Creation Strategy

Representative Director
President and CEO

Values & Vision

Our Board of Directors has adopted the Basic Policies for theInternal Control System to ensure the appropriateness of theGroup’s operations. We have also established the “Administrative Regulations for Subsidiary Companies” and a Group-wide

internal control system in an effort to appropriately manage theGroup through specific internal controls at our subsidiaries.
In addition, we manage important matters that have a significant impact on the entire Group by receiving reports fromand discussing them with subsidiaries, and take necessary
measures as a Group.

(as of June 27, 2023) (No. of Board of Directors meetings attended for FY 2022)

Integrated report 2023

52

Building and Maintaining a Fair and Transparent Corporate Group

Highlights in 11-year Financial Management
To continue to be a company group recognized and trusted by society, we are committed to continuous growth and theimprovement of the company value by accomplishing business structure reform.
* The latest information can be found at our website (https://www.mirait-one.com/english/).

Orders received

Orders received (100 million yen)

4,982 hundred million yen
BABA Chiharu

Outside Director

Shares owned: 257

No. of Board of Directors meetings attended
22/22 (100%)

No. of Board of Directors meetings attended
22/22 (100%)

Outside Director

KAWARATANI Shinichi

TSUKASAKI Yuko

No. of Board of Directors meetings attended
22/22 (100%)

Shares owned: 515
No. of Board of Directors meetings attended
13/13 (100%)

2,520

AOYAMA Koji

Shares owned: 20,019

Shares owned: 16,154

No. of Board of Directors meetings attended
22/22 (100%)

No. of Board of Directors meetings attended
22/22 (100%)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
(FY)

Gross profit/Gross profit margin

604 hundred million yen 12.5%
10.2

10.8

10.8

11.8

11.7

SUEMORI Shigeru

Shares owned: 1,846

Shares owned: 0

No. of Board of Directors meetings attended
22/22 (100%)

No. of Board of Directors meetings attended
11/13 (85%)

12.7

12.5

9.6
469

Gross profit (100 million yen)
Gross profit margin (%)

14.1
13.1
11.8

662

607

12.5
604

293

299

Shares owned: 0
No. of Board of Directors meetings attended- (Newly appointed)

6.8

6.7

6.7

185

189

7.4

7.3

184

334
301

7.0

306
6.6

8.0

7.1

6.8

230

262

197

258

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

(FY)

(FY)

Operating income/Operating income ratio

Operating income (100 million yen)
Operating income ratio (%)

218 hundred million yen 4.5%
5.3

206

4.1

108

114

5.5

3.5
2.3

7.0

5.0

4.3
4.5
2.6

100

52

117

122

2.5

223

232

178

4.6

105

67

61

61

3.7

148

7.3

6.8
5.3

219

4.4

341

317

5.8

5.7

5.2

218

219

167

Ordinary income (100 million yen)
Ordinary income ratio (%)

223 hundred million yen 4.6%

328
301
6.5

Ordinary income/Ordinary income ratio

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

(FY)

(FY)

147 hundred million yen
3.1%
3.9

2.6
1.4

1.5

32

42

71

Net income ratio (%)

257
6.8

5.2
3.7

111

2.3
1.3

242

115

152
3.4

251
5.3

Total assets/Net assets

4,367 hundred million yen
2,543 hundred million yen

147
3.1

1,537

1,727 1,759

1,927 1,949

2,180

Data

HAYAKAWA Osamu

387

8.3

8.0

234

Net income attributable to owners of parent/
Net income (100 million yen)
Net income ratio

Outside Director, Audit and Supervisory
Committee Member

SG & A (100 million yen)
SG & A ratio (%)

387 hundred million yen 8.0%
187

335

331

SG & A/SG & A ratio

521

397

2.2

(ISHIKAWA Chiaki)

2,360

2,607

141

Outside Director, Audit and Supervisory
Committee Member

3,129

(FY)

4.0

KATSUMARU Chiaki

2,710 2,777 2,837 2,695 2,832

3,233 3,263

5.0

Outside Director, Audit and Supervisory
Committee Member

3,759

Corporate Governance

YAMAMOTO Yasuhiro

4,839

Sustainability Management

Director, Audit and Supervisory
Committee Member (Full time)

2,781 2,820 2,936

4,637 4,703

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

240

Director, Audit and Supervisory
Committee Member (Full time)

4,982

4,411

Value Creation Strategy

Outside Director

4,749

4,839 hundred million yen

3,926

YAMAMOTO Mayumi

Shares owned: 515

Shares owned: 1,030

4,465

Net sales (100 million yen)

Values & Vision

Outside Director

5,213

Net sales

Total assets (100 million yen)
Net assets (100 million yen)

4,357 4,367
3,314

3,521 3,587

2,364
1,995

2,187 2,313

2,492 2,543

1,407
1,261 1,265 1,288
1,029 1,066 1,14164

362011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

(FY)

(FY)

* Numbers for FY 2018 include the impact of extraordinary gains from business merger (negative goodwill and other factors amounting to 100 hundred million yen).

53 MIRAIT ONE Corporation

Integrated report 2023

54

Highlights in 5-year Non-financial Management
We will continue to enhance the scope of the disclosure of non-financial data related to ESG, and be committed to the establishment of
non-financial targets set forth in the medium-term management plan.
FY 2018

Own capital/
Capital-to-asset ratio

Own capital (100 million yen)
Capital-to-asset ratio (%)

65.3

1,004

60.0

63.0

63.8

63.1

56.9

1,964

58.0

59.3
1,036 1,108

1,228 1,229 1,241

2,154
61.2

2,263

2,421 2,468

6.0%
15.4

Environment

56.5

63.1

11.0

55.6

1,372

CO2 emissions **ROE (％)

9.5

7.4

6.7
3.3

10.7

8.8
6.0

5.2

4.1

3.0

Ensuring Worker
Safety2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

(FY)

(FY)

Dividend/Dividend payout ratio per share

Net assets per share/Net income per share

60 yen 39.7%
Dividend per share (yen)Dividend payout ratio (%)

55
67.2
35

50.7

20

20

45

40

22.0

20

30

26.7

24.1
13.5
30

Net income per share (yen)Development of
a Comfortable
Working
Environment

39.7

37.6
22.9

2,573.50
2,446.54
2,232.25
2,006.42
1,933.82
1,511.74
1,733.14
1,510.59
1,570.53
1,362.61
1,218.42
1,257.67
Net assets per share (yen)

19.6

21.9
145.41136.5839.46 50.97 87.30
44.65 79.81

30

295.34250.84149.93 229.59

151.202011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

(FY)

(FY)

193
160

105

34

37
27 29 25 32 22 32 24
24

28

30

62

68

80

(FY)

% personnel with multiple qualifications ***Helping local
communities

Corporate citizenship spending

Net cash (100 million yen)-308 hundred million yen
129

162

327

287

150

���
�

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���

���

���

���
�

�

���

���

���

���

���

���

���

���

���
���

���

���

�

���� ���� ���� ���� ���� ���� ���� ���� ���� ���� ���� ����(FY)Free cash flow

Free cash flow (100 million yen)

-70 hundred million yen

434

148

132
56

38

63

31
-31
-110

-308

���� ���� ���� ���� ���� ���� ���� ���� ���� ���� ���� ����

(FY)

26

25
-64

-71

-12

-70

-333

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
(FY)

Diversity

137,000 kwh*1

285,000 kwh

324,000 kwh*5

14,510kw*2(363,234kw*2)

35,463kw*2(398,697kw*2)

21,946kw*2(420,643kw*2)

19,377kw*5(440,020kw*5)———
0.00*1————40,000m3*1——
39,000m3*1

96.4%*4
3.6%*439,000m3*1

96.6%*6
3.4%*643,000m3*5

0.18*1——0.35*1——0.00*1030.13*5
0*6
0*6

0*1

0*1

0*1

0*1

0*5

0*1

0*1

0*1

0*1

0*5

—
—
—
64.7%*1——
14.9 years*1
11.6 years*1———
63.0%*1——
14.8 years*1
11.8 years*1

98.4%
9.9%
24.9 hours*1
60.7%*1
41.9 years old*1
36 years old*1
15.3 years*1
11.2 years*1

97.5%
10.1%
22.9 hours*1
64.6%*1
42.1 years old*1
36.4 years old
15.6 years*1
11.5 years*1

96.8%*6
11.5%*6
20.7 hours*5
72.1%*5
43.4 years old*6
37.2 years old*6
17.3 years*6
12.3 years*6

22.1%*1

20.3%*1

26.8%*1

27.7%*1

31.2%*6

—

—

6.8%

5.4%

7.6%*6———

26.6%*2

25.6%*5

35 mil. yen*3

36 mil. yen*3

28.6 mil. yen*3

36.4 mil. yen*3

46.6 mil. yen*6

Serious violations of laws and regulations (numberof cases) *Internal reports (number of cases) *Total number of new recruits

—

—

0*1

0*1

1*6

—
56 persons*1—
75 persons*1

62*1
128 persons*1

90*1
95 persons*1

145*6
223 persons*6

Number of women recruits

14 persons*1

17 persons*1

29 persons*1

13 persons*1

53 persons*6

Ratio of new women recruits

16.7%*1

23.1%*1

23.2%*1

17.8%*1

23.8%*6

2,655 persons*1 2,716 persons*1

2,882 persons*1

2,925 persons*1

7,375 persons*6

180 persons*1
6.8%*1761 persons*1—
22 persons*1
2.9%*114 persons*1
1 person*1

193 persons*1
7.1%*1902 persons*1—
26 persons*1
2.9%*115 persons*1
1 person*1

255 persons*1
8.8%*1938 persons*1
30.9%
29 persons*1
3.1%*113 persons*1
0 person*1

266 persons*1
9.1%*1972 persons*1
30.1%
30 persons*1
3.1%*1
12 persons*1
0 person*1

790 persons*6
10.7%*6
2,469 persons*6
33.5%*6
79 persons*6
3.2%*619 persons*5
3 person*5

7.1%*1

6.7%*10%*10%*1

15.8%*5

—

—

—

—

72.4%*5—100%*1—
100%*1

—
100%

80.2%
100%

65%*6
100%*6——48 persons

49 persons

55 persons*6——

41 persons

43 persons

70 persons*6——

1,783 persons

1,580 persons

1,431 persons*6——

134 persons

132 persons

131 persons*6

—
—

—
—

—
2.15%

75.6%
2.19%

88.9%*6
2.14%*6

Total number of employees
Number of women employees
Ratio of women employees
Total number of managerial positions
Ratio of managers *Number of women in managerial positions
Ratio of women in managerial positions
Total number of directors (executives)
Women directors (executives)
Ratio of women directors
Differential wage ratios between men and women in
the workforce ****
Rate of parental leave taken by male employees ***Rate of parental leave taken by female employees
Number of employees who worked shorter hours forchildcare *Number of employees who took sick child leave *Non-regular employees (contract employees,
dispatch employees) *No. of mid-career employees hired (incl. those withsignificant experience) *Rate of Reemployment After Retirement ***Disabled persons employment rate ** Disclosed from FY 2020** From FY 2020, total values of seven companies
		including SEIBU CONSTRUCTION CO., LTD.
		are disclosed for different scopes.
*** Disclosed from FY 2021**** Disclosed from FY 2022

Data

Net cash

191

���

40

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

289

���

95

91
58

303 hundred million yen
611 hundred million yen
Cash and equivalents (100 million yen)Interest bearing debt (100 million yen)

126

46

Cash and equivalents/Interest bearing debt

Stress check participation rate *Percentage of highly stressed employees *Average overtime hours *Rate of annual paid leave
Average age *Average age of women *Average employment years
Average employment years for women
Percentage difference in average employment years
for female to male employees
Turnover rate (past 3-year average for new graduates) *132,000 kwh*1

Corporate Governance95 hundred million yen
80 hundred million yen

Capital investment (100 million yen)
Depreciation (100 million yen)

Number of work-related accidents (fatalities) among
contract employees in the past 3 years *Talentdevelopment

ThoroughCompliance

Capital investment/Depreciation

Industrial waste recycling ratio ***Industrial waste final disposal ratio ***Water resources used and total water discharged
Occupational accident frequency rate
Number of serious facility accidents ***Number of accidents resulting in serious injury ***Number of work-related accidents (fatalities) among
regular employees in the past 3 years *FY 2022

Scope 1:65,166t-CO2*6
Scope 2:19,754t-CO2*6
Scope 3:2,222,900t-CO2e*6

Sustainability Management

39.2

40

60

2,573.50 yen 151.20 yen

Total annual amount of green energy generated by
138,000 kwh*1
the Company (solar)
Power generation capacity of other companies’
48,929kw*2
renewable energy generation facilities constructed by(348,724kw*2)
the Group (cumulative total)

14,856 t-CO2*2

FY 2021

Value Creation Strategy

Promoting Healthand Productivity
Management

8,868 t-CO2*2

FY 2020

Scope 1:66,890t-CO2
Scope 1:67,907t-CO2
Scope 2:22,841t-CO2
Scope 2:21,277t-CO2
Scope 3:2,471,130t-CO2e Scope 3:2,413,496t-CO2e

Values & Vision

2,468 hundred million yen 56.5%

ROE

FY 2019[About the Numerical Data]
Number of employees working shorter hours for childcare (as of April 1, 2023) and employment rate of persons with disabilities (as of June 1, 2023). All except for the left are numbers
as of March 31, 2023.
Not indicated: The value is the total for former MIRAIT Holdings Corporation, former MIRAIT Corporation, former MIRAIT Technologies Corporation, TTK Co., Ltd., SOLCOM Co., Ltd., andShikokutsuken Co., Ltd. - the six companies*1 Non-consolidated (former MIRAIT Corporation only)*2 Total for former MIRAIT Corporation and former MIRAIT Technologies Corporation- the two companies*3 Total for former MIRAIT Holdings Corporation, former MIRAIT Corporation and former MIRAIT Technologies Corporation- the three companies*4 Former MIRAIT Corporation, former MIRAIT Technologies Corporation, TTK Co., Ltd., SOLCOM Co., Ltd., and Shikokutsuken Co., Ltd. - the five companies*5 Non-consolidated (MIRAIT ONE Corporation only)*6 MIRAIT ONE Corporation, TTK Co., Ltd., SOLCOM Co., Ltd., Shikokutsuken Co., Ltd., SEIBU CONSTRUCTION CO.,LTD., and MIRAIT ONE SYSTEMS Corporation - the six companies* Numbers for FY 2018 include the impact of extraordinary gains from business merger (negative goodwill and other factors amounting to 100 hundred million yen).

55 MIRAIT ONE Corporation

Integrated report 2023

56

Company Information/Stock Information

Concept of the Corporate Brand Name
‘ONE’ in our corporate name MIRAIT ONE is
the simple representation of our goal and determination.

Overview of MIRAIT ONE Corporation (As of March 31, 2023)
October 1, 2010

Head office

5-6-36 Toyosu, Koto-ku, Tokyo, Japan

Representative

NAKAYAMA Toshiki, President and Chief Executive Officer

Capital

7.0 billion yen

Ratings

Rating and Investment Information, Inc. (R&I): A

ONE for All, All for
The collective strength of all employees
comes together as one.
MIRAIT ONE aims to represent the unity

Credit Rating Agency, Ltd. (JCR): A+
End of fiscal year

March 31

Employees

3,635 (MIRAIT ONE Group 14,350)

Values & Vision

Date of establishment

and solidarity within the Group.

Value Creation Strategy

Only

Status of Shareholders (As of March 31, 2023)
The latest information can be found at our website (https://www.mirait-one.com/english/).

We aim to be the ONE and only company
that provides the best quality and best technology/service levels

Stock Listing

Tokyo Stock Exchange (Prime Market)(Security code: 1417)

Total authorized shares

330,000,000

Total outstanding shares
Number of shareholders

103,325,329 (treasury shares: 7,114,552)
28,637 (excluding treasury shares)in the MIRAI (future) domains and existing domains,with respect for the important individuality of every employee.
Sustainability Management

NumberMajor Shareholders (Top 10)

We aim to be a global leading company
Number of shares held(in hundreds)

Name

Ownership (%)

by continuously taking on challenges.

150,308

15.62

Custody Bank of Japan, Ltd. (trust account)

79,192

8.23

Sumitomo Electric Industries, Ltd.

36,687

3.81

Sumitomo Densetsu Co., Ltd.

24,886

2.59

Please visit our website for detailed ESG information and our latest initiatives.

STATE STREET BANK AND TRUST COMPANY 505001

22,997

2.39

Employee Stock Ownership Plan of MIRAIT ONE

20,912

2.17

NOMURA AYA

13,974

1.45

In the “Integrated Report” published once a year, the Group discloses in-depth and focused information on its Story ofCreating Values, Growth Strategy, sustainability management, etc., while detailed ESG-related information and the latest
initiatives are comprehensively disclosed in the “ESG” and “News” sections of the website and updated as needed.

Mizuho Bank, Ltd.

13,005

1.35

THE BANK OF NEW YORK, TREATY JASDEC ACCOUNT

12,806

1.33

STATE STREET BANK WEST CLIENT - TREATY 505234

12,4791.30

Top of “ESG”

News

https://www.mirait-one.com/english/esg/

https://www.mirait-one.com/english/info/

Corporate Governance

The Master Trust Bank of Japan, Ltd. (trust account)*1 The ratio of shares held is calculated after subtracting the treasury shares (7,114,552).
*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.

Data

Share Distribution By Owner Type (Excluding treasury shares)
Number of shares by owner type

Financial institutions
Financial instruments business
operators
Other corporations in Japan
Foreign corporations, etc.
Individuals/other
Total

57 MIRAIT ONE Corporation(shares)

Ratio (%)

Number of shares by owner type

33,970,728

35.3

1,180,734

1.2

11,714,319
23,011,626
26,333,370
96,210,777

12.2
23.9
27.4
100.0

Financial institutions
Financial instruments business
operators
Other corporations in Japan
Foreign corporations, etc.
Individuals/other
Total

Number of shareholders

Ratio (%)

43

0.2

35

0.1

335
243
27,981
28,637

1.2
0.8
97.7
100.0

Integrated report 2023

58

MIRAIT ONE Corporation
Public Relations Department, Corporate Strategy Division
5-6-36, Toyosu, Koto-ku, Tokyo 135-8111, Japan
TEL. +81-3-6807-3120
FAX. +81-3-5546-2967
https://www.mirait-one.com/english/