Second Quarter Consolidated Financial Reportfor the Six Months Ended September 30, 2022 [Japanese GAAP]
Listed company
name

MIRARTH HOLDINGS, Inc.

Security code
Representative8897(Job title)

October 31, 2022
Stock Exchange Listings
Prime marketof the Tokyo Stock Exchange

URL https://mirarth.co.jp/en/
Representative Director(Name) Kazuichi Shimada
Director and Executive General
Contact person(Job title) Manager of Corporate Planning (Name) Masashi Yamamoto
TEL +81-3-6551-2133
Headquarters
Scheduled date for
Scheduled date for release ofNovember 14, 2022
commencement ofDecember 6, 2022Annual Securities Report
dividend payments
Preparation of supplementary material on quarterly financial results: Yes
Quarterly results briefing: Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen)
1. Consolidated Operating Results for the Six Months Ended September 30, 2022 (from April 1, 2022 to September 30, 2022)(1) Consolidated Operating Results (Cumulative)(Percentages indicate year-on-year changes)
Net sales

Net income attributableto owners of parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%Millions of yen%

73,471

46.7

4,328

635.4

3,810-

2,875-

50,098-

588-

△89-

△226-

Second Quarter of Fiscal
Year Ending March 2023
Second Quarter of Fiscal
Year Ending March 2022
(NOTE)

Operating income

Second Quarter of Fiscal Year

Comprehensive income Ending March 2023

2,901

Millionsof yenQuarterly net income pershare(-%)

Second Quarter of Fiscal YearEnding March 2022

Millions△161(-%)
of yenQuarterly diluted net
income per share

Yen
Yen
Second Quarter of Fiscal
26.35
26.16
Year Ending March 2023
Second Quarter of Fiscal△2.09
Year Ending March 2022
(NOTE) 1. As the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31,2020), etc. from the beginning of the previous first quarter consolidated accounting period, the figures for the second
quarter of the fiscal year ending March 31, 2022 are after the application of the said accounting standard, etc., and thepercentage change from the same quarter of the previous year is not stated.
2. At the end of the fiscal year ending March 31, 2022, the Company finalized the provisional accounting treatment for thebusiness combination, and each figure for the second quarter of the fiscal year ending March 31, 2022 reflects the detailsof the finalization of the provisional accounting treatment.
(2) Consolidated Financial Position
Total assets
Millions of yen

Net assets
Millions of yen

251,828

61,14324.0

59,601

26.5

Second Quarter of Fiscal
Year Ending March 2023
Year Ending March 31, 2022
Reference:
Shareholders' equity

Second Quarter of Fiscal
Year Ending March 2023

223,473
60,530Millions of yen

Year Ending March31, 2022

Equity Ratio%

59,109Millions of yen

2. Dividend Status

End of first quarter

Annual Cash Dividends per Share
End of secondEnd of the third
Term endquarterquarter
Yen
Yen
Yen
4.00
14.00
4.00

Yen
Year ending March 31, 2022
Year ending March 31, 2023
Year ending March 31, 2023
(Forecast)(NOTE) Revisions to the most recently announced dividend forecasts: None-Total

16.00

Yen
18.00
20.00

3. Consolidated Operating Results Forecast for the Fiscal Year Ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

Net sales

Full year

Millionsof yen173,500

Operating income%
6.6

Millionsof yen11,900%0.2(Percentages indicate year-on-year changes.)
Net income
Net income perOrdinary income attributable to owners
shareof parent
Millions
Millions%%
Yenof yenof yen
10,300
0.4
7,000
12.6
64.19

(NOTE) Revisions to the most recently announced earnings forecasts: None※ Notes(1) Changes in significant subsidiaries in the current quarterly consolidated Cumulative period(Changes in specified subsidiaries accompanied by changes in the scope of consolidation): None
New:-(Company name:-) Excluded:-(Company name:-)(2) Adoption of special accounting methods for preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies and changes or restatement of accounting estimates①Changes in accounting policies due to revisions to accounting standards, etc.: None②①Changes in accounting policies other than: None
③Changes in accounting estimates: None
④Restatement of revisions: None
(4) Number of shares outstanding (Common stock)① Number of shares outstanding at the end of
the period (including treasury stock)

Second Quarter of
Fiscal Year Ending

121,000,000Shares

March 2023
Second Quarter of② Year-end treasury stock

Fiscal Year Ending

11,680,207Shares

March 2023

③ Average number of shares during the period(quarterly consolidated cumulative period)

Second Quarter of
Fiscal Year Ending

Year Ending March
31, 2022

121,000,000SharesYear Ending March

11,948,807Shares

31, 2022
Second Quarter of

109,091,304Shares

March 2023

Fiscal Year Ending

108,738,512Shares

March 2022

※ This quarterly financial report is not subject to quarterly review by Certified Public Accountant or an auditing firm.
※ Explanation regarding the appropriate use of financial forecasts and Others special notes(Cautionary Statement with Respect to Forward-Looking Statements)
The earnings forecasts and other forward-looking statements herein are based on information currently available to us andcertain assumptions that we believe to be reasonable, and are not intended to guarantee the achievement of the forecasts. Actualresults may differ materially from the forecast depending on a range of factors.
(Method of Obtaining Supplementary Briefing Materials on Financial Results)
Supplementary materials for financial results are posted on our website and disclosed in TDnet.
(Financial Results Details Obtaining Methods)
We plan to distribute a video presentation of our financial results on our website.

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2022

○Attachments Table of Contents
1. Qualitative Information Regarding Consolidated Financial Results for the Second Quarter of the Fiscal Year underReview(1) Explanation of Operating Results

22(2) Explanation of Financial Position

3(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements

3

2. Quarterly Consolidated Financial Statements and Major Notes

4(1) Quarterly Consolidated Balance Sheets

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

6

Quarterly Consolidated Statements of Income
Second Quarter Consolidated Cumulative Period

6

Quarterly Consolidated Statements of Comprehensive Income
Second Quarter Consolidated Cumulative Period

7(3) Notes to Quarterly Consolidated Financial Statements

8(Notes on Going Concern)

8(Notes on Significant Changes in the Amount of Shareholders' Equity)

8-1-

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2022

1. Qualitative Information Regarding Consolidated Financial Results for the Second Quarter of the Fiscal Yearunder Review
As the provisional accounting treatment for business combinations conducted in the previous first quarter consolidated
accounting period was finalized at the end of previous fiscal year, comparison and analyses with the same quarter of the previousyear are based on amounts after reflecting a material revision to the initial allocation of the acquisition cost due to the finalization of
the provisional accounting treatment.
(1) Explanation of Operating Results
Consolidated cumulative period for the second quarter of the current fiscal year In the current fiscal year, the impact on thedomestic economy of the new Corona Virus infectious disease (COVID-19) continues, and the economic outlook remains
uncertain and challenging due to the prolonged geopolitical tension caused by Russia's invasion of Ukraine and the impact of
the sharp depreciation of the yen against the U.S. dollar in the foreign exchange market. Despite a challenging externalenvironment, we shifted to a holding company structure on October 1, 2022 and changed our name to MIRARTHHOLDINGS, Inc. We aim to promote sustainable growth by building a system that enables swift and flexible management
decisions and working to improve productivity through DX promotion and other measures.
In accordance with the "Notice of Changes in Business Segments" announced on March 14, 2022, the Group changed thesegment category from the previous 5 business segments to 4 business segments from first quarter consolidated accountingperiod. In addition, the results for the previous second quarter in the explanation of each segment below have been reclassified
in the new segments.
(Millions of yen)Previous second quarter
Segment nameCurrent second quarter

Comparison

Net sales

OperatingincomeNet sales

OperatingincomeNet sales

Operatingincome

Real Estate Business

43,168524

66,394

4,726

23,225

4,202

Energy Business

5,034△1755,026△484△8△308688

372638292△50△801,206△1321,411△206205△7350,098

588

73,471

4,328

23,372

3,739

Asset Management Business
Other Businesses
Total①Operating Results by Segment
With regard to real estate business, due to factors such as new built-for-sale condominium, liquidation, new detachedhouse, renewal resale, real estate rental, real estate management, and real estate other, this business net sales was 66,394million yen (up 53.8% from the same quarter of the previous year).
Energy business net sales was 5,026 million yen (down 0.2% from the same quarter of the previous year) due to revenue
from electricity sales at power generation facilities.
For asset management business, due to management fees, etc., this business net sales was 638 million yen (down 7.3%
from the same quarter of the previous year).
For other businesses, due to construction contracts, etc., this business net sales is 1,411 million yen (up 17.0% from thesame quarter of the previous year).
Consequently, the consolidated results of operations of cumulative period for the second quarter under review were as
follows: net sales 73,471 million yen (up 46.7% from the same quarter of the previous year), operating income 4,328 million
yen (up 635.4% from the same quarter of the previous year), ordinary income 3,810 million yen (ordinary loss of 89 million
yen for the same quarter of the previous year), and income attributable to owners of parent 2,875 million yen (lossattributable to owners of parent of 226 million yen for the same quarter of the previous year).
②Progress of Contracts
Regarding the sales results of the consolidated cumulative period for the second quarter of the current fiscal year, 1,676
units were contracted against the 1,780 units scheduled to be delivered for the full fiscal year, and the progress rate is 94.2%.

-2-MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2022

(Contract status for new built-for-sale condominiums)
Units scheduled fordelivery

Number of contracted
Units under contract
Contract progress ratio
units scheduled forfrom April to(%)
delivery
SeptemberPrevious period

1,800

1,506

83.7

987

Current period

1,780

1,676

94.2

1,166

(2) Explanation of Financial Position
Assets, Liabilities and Net Assets
With regard to the assets, liabilities, and net assets of the Group at the end of the second quarter of the consolidated fiscal
year under review, total assets of 251,828 million yen, up 28,355 million yen from the end previous fiscal year, mainly due
to an increase in inventories resulting from new purchases.
(Current Assets)
Current assets increased by 29,933 million yen from the end of previous fiscal year to 172,558 million yen mainly due toan increase in inventories resulting from new purchases.
(Fixed Assets)
Fixed assets decreased by 1,567 million yen from the end of previous fiscal year to 79,224 million yen mainly due to thetransfer to real estate for sale and power generation facilities for sale despite the steady purchase of business assets.
(Current Liabilities)
Current liabilities increased by 9,053 million yen from the end of previous fiscal year to 84,064 million yen mainly due toan increase in short-term borrowings and a transfer of short-and long-term category of borrowings.
(Fixed Liabilities)
Fixed liabilities increased by 17,760 million yen from the end of previous fiscal year to 106,621 million yen mainly due toan increase in borrowings associated with new purchases.
(Net Assets)
Total net assets increased by 1,541 million yen from the end of previous fiscal year to 61,143 million yen, mainly because
the amount of quarterly net income attributable to owners of the parent exceeded the dividends of retained earnings.
(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements
The forecast of consolidated financial results remains unchanged from the full-year forecast announced on May 13, 2022.

-3-MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2022

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly Consolidated Balance Sheets
End of Previous Consolidated
Accounting Period(As of March 31, 2022)
AssetsCurrent assets
Cash and deposits
Notes, accounts receivable-trade and contract
assetsReal estate for sale
Power generation facilities for sale
Real estate for sale in progress
Costs incurred on uncompleted contracts
OthersAllowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures (net)Land
Other (net)Total property, plant and equipment
Intangible assets
Goodwill
OthersTotal intangible assets
Investments and other assets
OthersAllowance for doubtful accounts
Total investments and other assets
Total fixed assets
Deferred assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of bonds payable
Current portion of long-term loans payable
Income taxes payable
Allowance
OthersTotal current liabilities
Fixed liabilities
Long-term loans payable
Bonds payable
Allowance
Liabilities related to retirement benefits
OthersTotal fixed liabilities
Total liabilities-4-(Millions of yen)
Current 2nd Quarter Consolidated
Accounting Period(As of September 30, 2022)

33,42842,316

2,886

3,092

32,616
1,001
58,036
12
14,919△275
142,625

30,3595,638
78,97732
12,416△275
172,558

9,553
36,94817,23763,739

7,980
38,416
16,07962,476

1,561
948
2,510

1,397
1,031
2,428

14,554△12
14,54280,792
55
223,473

14,331△12
14,31979,22445
251,828

15,411
14,1892,168
25,298
2,089
1,115
14,73875,010

10,571
24,7202,220
27,478858
1,156
17,05884,06481,923
4,070
160
984
1,722
88,860163,871

99,615
4,090
134
1,046
1,734
106,621
190,685MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2022

End of Previous Consolidated
Accounting Period(As of March 31, 2022)
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Net unrealized gains on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interest
Total net assets
Total liabilities and net assets-5-(Millions of yen)
Current 2nd Quarter Consolidated
Accounting Period(As of September 30, 2022)

4,819
4,817
53,395△4,456
58,5754,819
4,818
54,743△4,35660,0255480△14534
197
294
59,601
223,473508
9△12505403
208
61,143251,828

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2022

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Second Quarter Consolidated Cumulative Period)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Commission received
Gain from equity method investment
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Miscellaneous expenses
Total non-operating expenses
Ordinary income (loss) (△)
Quarterly net income (loss) (△) before income taxes andminority interests
Income taxes, inhabitant taxes and business taxes
Income tax adjustments
Total income and other taxes
Quarterly net income (loss) (△)
Quarterly net income attributable to non-controllinginterests
Quarterly net income attributable to owners of the parent
or quarterly net loss attributable to owners of the parent(△)(Millions of yen)Previous 2nd Quarter
Current 2nd Quarter Consolidated
Consolidated Cumulative period
Cumulative period(from April 1, 2021
(from April 1, 2022
to September 30, 2021)
to September 30, 2022)
50,09873,471
39,701
58,328
10,397
15,1439,809
10,814588
4,328-6-

41147
33
975
308

11153
37
43
153
399

903
83986
△89751
166
917
3,810

△89

3,810

475
△410
65
△154822
57
880
2,929

7254

△2262,875

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2022

(Quarterly Consolidated Statements of Comprehensive Income)(Second Quarter Consolidated Cumulative Period)

Quarterly net income (loss) (△)
Other comprehensive income
Net unrealized gains on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total other comprehensive income
Quarterly comprehensive income(Comprising)
Quarterly comprehensive income attributable toowners of the parent
Quarterly comprehensive income attributable to noncontrolling interests(Millions of yen)Previous 2nd Quarter
Current 2nd Quarter Consolidated
Consolidated Cumulative period
Cumulative period(from April 1, 2021
(from April 1, 2022
to September 30, 2021)
to September 30, 2022)△1542,929-7-△5△10△6△161△4092△282,901△2332,8467254

MIRARTH HOLDINGS, Inc. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2022

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern)
Not applicable.
(Notes on Significant Changes in the Amount of Shareholders' Equity)
Not applicable.

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