Consolidated Financial Results
for the Six Months Ended September 30, 2021 [Japanese GAAP]
November 12, 2021
Company name:MIRAIT Holdings Corporation
Stock exchange listing: TSE
Code Number:1417
URL: https://www.mirait.co.jp/
Representative:
Toshiki Nakayama, President and CEO
Contact:
Masakazu Tsukamoto, Director and CFO
Phone +81-3-6807-3124
Scheduled date for filing of quarterly report:
November 12, 2021
Scheduled date for commencement of dividend payment:
November 30, 2021
Supplementary briefing materials on quarterly results:
Available
Quarterly results briefing:
Scheduled (for analysts and institutional investors)(Amounts are rounded down to the nearest one million)

1. Consolidated Financial Results for the Six Months Ended September 30, 2021
(April 1, 2021 to September 30, 2021)(1) Consolidated Operating Results (cumulative)(% indicates change from the same period of the previous fiscal year)
Net sales

Ordinary income%

million yen%

million yen%

million yen

%

10.5

11,071

64.2

11,700

51.0

7,810

62.7

4.8

6,744

36.0

7,748

38.7

4,799

43.2

million yen

Six months ended
211,851
September 30, 2021
Six months ended
191,788
September 30, 2020
(Note) Comprehensive income:Six months ended September 30, 2021
Six months ended September 30, 2020

Net income per share

Diluted net income
per share

yen

yen

77.48

－

44.69

－

Six months ended
September 30, 2021
Six months ended
September 30, 2020

Profit attributable toowners of parent

Operating income

8,467 million yen (123.5%)
3,788 million yen (-10.7%)(2) Consolidated Financial Position
Total assets

Net assets

million yen

As of September 30, 2021
As of March 31, 2021
(Reference) Equity:

Equity ratio

million yen%

336,023
234,762
358,751
231,323
As of September 30, 2021
229,736 million yen
As of March 31, 2021 226,389 million yen

68.4
63.1

2. Dividends
Annual dividends per share
End of 1Q
yen

End of2Q
yen

End of 3Q
yenYear-end

Fiscal year ended
－
－
22.50
March 31, 2021
Fiscal year ending－
25.00
March 31, 2022
Fiscal year ending－
March 31, 2022
(forecast)(Note) Revision of dividend forecasts from recently announced figures: Yes

Total

yen

Yen

22.50

45.00

30.00

55.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022
(April 1, 2021 to March 31, 2022)(% indicates change from the same period of the previous fiscal year)
Profit
Net income per
Operating income Ordinary income
attributable toshareowners of parent

Net sales

Full year ending
March 31, 2022

million yen%

million yen%

million yen%

million yen%

Yen

480,000

3.5

32,0006.2

33,5005.5

22,500(7.0)

224.09(Note) Revision of financial results forecasts from recently announced figures: Yes* Notes:(1) Significant changes in subsidiaries during the period under review: None
(2) Application of specific accounting practices for preparing consolidated quarterly financial statements: Yes(3) Changes in accounting principles and changes or restatements of accounting estimates:
1) Changes in accounting principles due to revision of accounting standards: Yes
2) Changes in accounting principles other than 1) above: None
3) Changes in accounting estimates: None
4) Restatements: None
(4) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury stock):
September 30, 2021

108,325,329 shares

March 31, 2021

108,325,329 shares2) Total number of treasury stock at the end of the period
September 30, 2021

8,331,246 shares

3) Average number of shares outstanding
September 30, 2021

March 31, 2021

6,907,718 shares

during the period

100,812,462 shares

September 30, 2020

107,386,848 shares(Note) Total number of treasury stock includes the Company’s stock held by the Board Incentive Plan trust under theCompany’s performance-linked stock remuneration program for directors and executive officers.

*
-

*
-

Implementation status of quarterly review processes
This quarterly summary of consolidated financial results is not subject to the quarterly review procedures
stipulated under the Financial Instruments and Exchange Act.

Explanation regarding the appropriate use of performance forecasts, and other items warranting
special mention
The performance forecasts and other forward-looking statements in this report are based on information
currently available to the Company and on certain assumptions deemed to be reasonable. Accordingly, actual
performance may differ materially depending on various factors.

Table of Contents: Supplementary Materials

1. Overview of Operating Results and Financial Position

P. 2(1) Overview of Operating Results for the Period under Review

P. 2(2) Overview of Financial Position for the Period under Review

P. 2(3) Future Outlook

P. 3

2. Notes to Summary Information (Explanatory Notes)

P. 3(1) Changes in Important Subsidiaries during the Period under Review

P. 3(2) Application of Specific Accounting Practices for Preparing Consolidated Quarterly Financial
Statements
3. Consolidated Quarterly Financial Statements and Notes

P. 3(1) Consolidated Quarterly Balance Sheets

P. 4(2) Consolidated Quarterly Statements of Income and Comprehensive Income

P. 6(3) Notes to Consolidated Financial Statements

P. 8

P. 4

(Notes on going concern assumption)

P. 8(Notes on significant changes to shareholders’ equity)

P. 8(Changes in accounting principles)

P. 8

-1-

1. Overview of Operating Results and Financial Position(1) Overview of Operating Results for the Period under Review
During the first six months of the current consolidated period (from April 1, 2021 to September 30, 2021), theJapanese economy continued to suffer from the impact of the novel coronavirus disease (COVID-19). Potential
underperformance of the economy due to the COVID-19 situation and supply chain disruptions such as theshortage of semiconductors continues to warrant caution. However, there are increased expectations for economic
activity to normalize given the various policies and measures implemented to prevent the spread of the virus andprogress on the vaccine rollout.
As for the business environment for the MIRAIT Group (“the Group”), some projects remain behind scheduledue to voluntary restraints and delays in the delivery of construction materials. However, the Group is benefittingfrom increased mobile work due to base station installment plans brought forward on the back of the proliferationof fifth-generation mobile telecommunication (5G) services. In addition, demand for ICT solutions is increasing
with the penetration of online classrooms/ teleworking and digital transformation (DX). Furthermore, thegovernment’s “green growth strategy”, including initiatives to promote the shift to renewable energy to achievea carbon-free society, is expected to boost demand to build more robust digital infrastructure.
Against this backdrop, the MIRAIT Group has continued business operations as a trusted “Comprehensive
Engineering and Services Company” that builds and protects social infrastructure that is essential to communities,
while taking appropriate measures to prevent the spread of COVID-19. At the same time, the Group is
endeavoring to enhance corporate value and to achieve sustainable growth through initiatives to elevate theefficiency of business operations, including those to promote workstyle reforms and DX.
During the first six months of the current consolidated period, the MIRAIT Group strived to grow orders andsales. The NTT business witnessed an increase in optical fiber work on the back of government-supported
projects to expand advanced wireless telecommunication networks. In the Multi-carrier business, mobile-related
work increased as plans to build 5G base stations were brought forward with the spread of 5G-related services,and so did CATV work. In the Environmental and Social Innovation business, water utility work increased andthe Group made efforts to win large-scale electrical construction projects. Lastly, the ICT Solutions businessenjoyed increases in LAN/ PBX work and datacenter work, as well as sales of mobile-related construction
materials. Meanwhile, the Group continued to promote operational efficiency to maintain and achieve higher
profitability.
Furthermore, the Group is accelerating efforts to transform its business structure. Specifically, in preparation
for the tri-party merger with MIRAIT Co., Ltd. and MIRAIT Technologies Co., Ltd. scheduled for early-FY2022,
the Group launched the “One-Team” initiative in the frontier domain in October 2021, following those launchedin the solutions domain in April 2021 and the global domain in July 2021.
As for the consolidated financial results for the first six months ended September 2021, orders received
increased by 9.0% year-on-year to 249,699 million yen, net sales increased by 10.5% year-on-year to 211,851
million yen, operating income increased by 64.2% year-on-year to 11,071 million yen, ordinary income increased
by 51.0% year-on-year to 11,700 million yen, and net income attributable to owners of parent increased by 62.7%
year-on-year to 7,810 million yen.
(2) Overview of Financial Position for the Period under Review
Total assets at the end of the second quarter of the current consolidated period amounted to 336,023 million
yen, a decrease of 22,728 million yen from the end of the previous fiscal year. This was mainly due to the decreasein accounts receivables including those from completed construction contracts and other and the decrease ininvestment securities reflecting the sale of policy shareholdings, which more than offset the increase in costs on
construction contracts in progress and other.
-2-

Total liabilities decreased by 26,167 million yen to 101,260 million yen, mainly due to the decrease in accounts
payable for construction contracts and other, and income taxes payable.
Net assets increased by 3,439 million yen to 234,762 million yen due to 7,810 million yen in net income
attributable to owners of parent recorded during the quarter, which more than offset the dividend payment of
2,291 million yen and the share repurchase of 2,999 million yen.
As a result of the above, the equity ratio at the end of the second quarter stood at 68.4% (compared with 63.1%
at the end of the previous fiscal year).
(3) Future Outlook
The forecast for the consolidated financial results for the fiscal year ending March 31, 2022 has been revised
upward from the previous forecast announced on May 14, 2021, to reflect the steady performance in the first halfof the fiscal year, the anticipated expansion of 5G services, increase in demand for upgrading telecommunication
facilities with the penetration of online classrooms/ teleworking and the increase in demand for new ICT solutions
for digital transformation. The revised forecast for orders received is 490.0 billion yen (up by 3.2% year-on-year),net sales is 480.0 billion yen (up by 3.5% year-on-year), operating income is 32.0 billion yen (up by 6.2% yearon-year), ordinary income is 33.5 billion yen (up by 5.5% year-on-year) and net income attributable to ownersof parent is 22.5 billion yen (down by 7.0% year-on-year) .
Revision of Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022
(April 1, 2021 - March 31, 2022)
Net sales

Operating income

Ordinary income

Net income
attributable toowners of parent

Net income
per sharePreviously announced
forecast (A)(million yen)(million yen)(million yen)(million yen)(yen)

470,000

30,50032,00021,000208.92

Revised forecast (B)480,000

32,00033,50022,500224.09Change (B-A)

10,000

1,500

1,500

1,500

―

2.1

4.9

4.7

7.1

―

463,744

30,12931,73924,205229.59Percentage change(Reference)Previous year's results(FYE March 2021)

2. Notes to Summary Information (Explanatory Notes)(1) Changes in Important Subsidiaries during the Period under Review
Not applicable.
(2) Application of Specific Accounting Practices for Preparing Consolidated Quarterly Financial Statements
Calculation of tax expense
Tax expenses are calculated by reasonably estimating the effective tax rate after applying tax effectaccounting against income before income taxes for the current fiscal year, including the second quarter ended
September 30, 2021, and then multiplying income before income taxes for the six months with the said
estimated effective tax rate.
The statutory tax rate is applied if the tax expense calculated using the estimated effective tax rate lacks
rationality to a significant degree.
-3-3. Consolidated Quarterly Financial Statements and Notes(1) Consolidated Quarterly Balance Sheets(Millions of yen)
Fiscal Year Ended
March 31, 2021

Six Months Ended
September 30, 2021

44,764

48,187

147,605

112,740

30,7895,460

35,393
4,873

4,902
(26)

7,800
(11)

233,494

208,983

Buildings and structures, net
Land38,54632,891

41,38533,392

Construction in progress
Other, net

5,602
9,614

4,537
9,582

Total property, plant and equipment

86,65588,897

Customer related assets
Goodwill

2,523
3,094

2,554
2,972

Software
Other

1,620
311

2,254
289

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed construction
contracts and other
Costs on construction contracts in progress
Investments in leases
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Intangible assets

Total intangible assets

7,549

8,071

Investments and other assets
Investment securities

22,562

20,426Retirement benefit asset
Deferred tax assets

2,988
2,504

3,960
2,680

Leasehold and guarantee deposits
Other

1,425
1,798

1,437
1,778

Allowance for doubtful accounts

(227)

(213)

Total investments and other assets

31,05230,069125,256

127,039358,751

336,023

Total non-current asset
Total assets-4-

(Millions of yen)

Fiscal Year Ended
March 31, 2021

Six Months Ended
September 30, 2021

Notes payable, accounts payable for construction contracts and other
Short-term borrowings

63,213
186

49,436
186

Income taxes payable
Lease obligations

8,086
3,347

2,031
3,412

Advances received on construction contracts in progress
Provision for loss on construction contracts

3,150
1,299

4,538
1,013

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

8,023
101

7,572
55

Provision for warranties for completed construction
Other

10
15,59911
8,201

Total current liabilities

103,018

76,459Long-term accounts payable - other
Lease obligations

1,324
6,592

1,304
6,098

Deferred tax liabilities
Deferred tax liabilities for land revaluation

1,139
41

1,120
41

122
310

74
325

13,974
189

15,035
190

Liabilities
Current liabilities

Non-current liabilities

Provision for retirement benefits for directors (and other officers)
Provision for share-based compensation
Retirement benefit liability
Asset retirement obligations
Other

714

609

24,40924,800127,428

101,260

Share capital
Capital surplus

7,000
69,571

7,000
69,601Retained earnings
Treasury shares

155,239(10,888)

160,971(13,842)

Total shareholders' equity

220,922

223,731

4,660

4,292

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment(98)(1,126)

Remeasurements of defined benefit plans

2,031

(191)
2,002

Total accumulated other comprehensive income

5,466

6,004

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

-5-

(98)

4,934

5,026

231,323

234,762

358,751

336,023

(2) Consolidated Quarterly Statements of Income and Comprehensive Income
Six Months Ended September 30, 2021
(Millions of yen)

Six Months Ended
September 30, 2020

Six Months Ended
September 30, 2021

191,788
170,377

211,851
184,244

Gross profit on completed construction contracts

21,411

27,606

Selling, general and administrative expenses

14,666

16,535

Operating profit

6,744

11,071

37

24

Dividend income
Foreign exchange gains

577
217

384

Surrender value of insurance policies
Share of profit of entities accounted for using equity method

87

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

Non-operating income
Interest income

－
49
112

－
230

252

1,151

823

Interest expenses
Share of loss of entities accounted for using equity method

21
78

24

Foreign exchange losses
Other

－
46

－
101
68

Total non-operating expenses

146

194

7,748

11,700Gain on sales of non-current assets
Gain on sales of investment securities

9
485

12
1,172

Gain on revision of retirement benefit plan
Other

275
－

－
34

Total extraordinary income

770

1,219

Loss on revision of retirement benefit plan
Loss on sale of non-current assets

－
0

34
27

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

71
5

59

Loss on valuation of investment securities
Business restructuring expenses

58

Other
Total non-operating income
Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses

－
38

Other
Total extraordinary losses

－
0
55
66

174

244

Profit before income taxes

8,344

12,675

Income taxes

3,381

4,752

Profit

4,963

7,923

4,799
164

7,810
112

Profit attributable toProfit attributable to owners of parent
Profit attributable to non-controlling interests-6-

(Millions of yen)

Six Months Ended
September 30, 2020

Six Months Ended
September 30, 2021

(264)

(368)

(912)
1

929
(29)

(0)

12

(1,175)544

Comprehensive income

3,788

8,467

Comprehensive income attributable toComprehensive income attributable to owners of parent

3,624

8,349

163

118

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using
equity method
Total other comprehensive income

Comprehensive income attributable to non-controlling interests-7-(3) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes on significant changes to shareholders’ equity)
On May 14, 2021, the Board of Directors of the Company resolved to repurchase its own shares in the market
pursuant to Article 156 of the Companies Act of Japan, applied pursuant to Paragraph 3, Article 165 of theCompanies Act, following which the Company purchased 1,457,800 shares of its common stock of an amountof 2,999 million yen. As a result, the Company’s treasury stock increased by the same amount. The total amountof treasury stock at the end of the second quarter of the current consolidated fiscal period was 13,842 million
yen.
(Changes in accounting principles)(Application of Accounting Standard for Revenue Recognition)
The Company has adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29
dated March 31, 2020) and other relevant standards from the beginning of the first quarter of the current
consolidated fiscal period. Under the new accounting policy, revenue is recognized as the amount expected tobe received in exchange for promised goods or services when the control of such goods or services istransferred to the customer.
Major changes resulting from the application of the “Accounting Standard for Revenue Recognition”, etc.,
are described below.
(1) Performance obligations satisfied over a certain period of time
The Company previously applied the percentage-of-completion method for construction contracts inwhich the outcome of the portion of the construction to be completed at the end of the consolidated fiscal
year was deemed to be certain. The completed contract method was applied for other construction contracts.
Under the new accounting policy, revenue is recognized over a certain period in accordance with theprogress on satisfaction of performance obligations, with the exception of small and short-term construction
work. If the progress on satisfaction of performance obligations cannot be reasonably estimated, but costs
incurred to satisfy such performance obligations is expected to be recovered, revenue is recognized within
the scope of actual costs incurred.
(2) Transactions deemed to be agency transactions
The Company previously recognized the total amount received from customers in exchange for goods
for certain sales transactions. Under the new accounting policy, revenue for sales transactions in which theCompany acts as an agent is recognized as the net amount after deducting the amount that is paid to the
supplier of such goods from the amount received from customers.
In accordance with the transitional treatment stipulated in the proviso of Article 84 of the “AccountingStandard for Revenue Recognition”, retained earnings as of the beginning of the first quarter of the current
consolidated fiscal period has been adjusted to reflect the cumulative effects of retrospectively applying the
new accounting policy to periods prior to the beginning of the first quarter of the current consolidated fiscal
period, and the new accounting policy is applied from the said balance.
As a result of the application of the new accounting policy, net sales for the first six months increased by
6,434 million yen, cost of sales by 6,150 million yen, and operating income, ordinary income and profit
before income taxes by 283 million yen. Retained earnings at the beginning of the period under review
increased by 63 million yen.

-8-In accordance with the transitional treatment stipulated in Article 89-2 of the “Accounting Standard for
Revenue Recognition”, the Company has not reclassified the statements for the previous consolidated fiscal
year to conform to the new accounting policy. Furthermore, in accordance with the transitional treatment
stipulated in Article 28-15 of the “Accounting Standard for Quarterly Financial Reporting” (ASBJ
Statement No.12 dated March 31, 2020), the Company has not presented the breakdown of revenue derived
from contracts with customers for the second quarter of the previous consolidated fiscal period.
(Application of Accounting Standard for Fair Value Measurement）
The Company has adopted the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.
30 dated July 4, 2019) and other relevant standards, from the beginning of the first quarter of the current
consolidated fiscal period. In accordance with the transitional treatment stipulated in Article 19 of the“Accounting Standard for Fair Value Measurement” and Article 44-2 of the “Accounting Standard for
Financial Instruments (ASBJ Statement No. 10 dated July 4, 2019), the new accounting policy set forth in the“Accounting Standard for Fair Value Measurement”, etc., is applied into the future. This has no effect on thequarterly consolidated financial statements.

-9-