Year Ended March31, 2023 Financial Results Briefing

MIRARTH HOLDINGS, Inc. (formerly Takara Leben Co., Ltd.)

Securities Code: 8897

May 19, 2023

Executive Summary Year Ended March31, 2023's consolidated results were as follows: Net sales 153,472 million yen (△ 5.7%
YoY), Operating income 7,030 million yen (△ 40.8% YoY), Ordinary income 5,033 million yen (△ 50.9%
YoY), and Net income attributable to owners of parent 4,584 million yen (△ 26.2% YoY ).
 Although both sales and profits declined due to the impact of TOB in Takara Leben Infrastructure Fund
Inc., we are planning a major change in our earnings structure going forward, shifting from flow to stock.
In the year ended March 31, 2030, Energy Business accounted for 30% of the total Operating income andwe are aiming for EBITDA Real Estate Business : Energy Business = 1:1.
 In conjunction with the implementation of TOB, the Group reviews the numerical targets and key
management indicators of the Medium-Term Management Plan and formulates medium-to long-term
strategies for Energy Business. In addition to stable growth in Real Estate Business and the developmentof Energy Business and improved profitability through stable earnings growth in Asset Management
Business, expansions will promote sustainability management to realize a pass.

※ EBITDA= Operating income + Depreciation and amortization

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

2

INDEX

01 Year Ended March31, 2023 Performance Summary

P. 4

02 Full year Forecast for the Fiscal Year Ending March31, 2024

P. 17

03 Progress Under The First Medium-Term Business Plan

P. 26

04 Growth Strategy

P. 36

05 Appendix

P. 46

01
Year Ended March31, 2023 Performance Summary
Performance Summary

Year Ended March31, 2023 Consolidated Statements of Income(Millions of yen)

Year Ended March31,
2022
ActualYear Ended March31,
2023
ActualNet sales

162,744

153,472

Cost of sales

129,626

121,763

Gross profit

33,11731,708Selling, general and administrative
expenses

21,24024,677

Operating income

11,877

7,030

Ordinary income

10,2585,033

Net income attributable to ownersof parent

6,215

4,584

Cost of debt

0.6%

Shareholders' equity Costs
WACC

YoY change
Rate of changeYear Ended
March31, 2023
Initial target

vs. Plan Change△5.7%

173,500△4.3%

33,100△6.1%

140,400

16.2%

21,200△40.8%

11,900△11.5%△13.3%△4.2%
16.4%△40.9%△50.9%

10,300△26.2%

7,000

0.9%

0.3P

―

―

3.2%

4.6%

1.4P

―

―

1.2%

1.6%

0.4P

―

―

△51.1%△34.5%※WACC = Cost of debt × (1-T) × D/ (D + E) + Cost of Shareholders' equity × E/ (D + E) (T: Estimated at the effective tax rate [30.9%]) D: E interest-bearing debt: Equity attributable to owners of the parent

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

5

Year Ended March31, 2023 Net sales/Gross profit/Operating income by Segment•••

Real Estate Business: Gross profit exceeds forecast due to strong sales.
Energy Business: Negative in Operating income due to TOB impact.
Asset Management Business: Acquisition fees decreased due to the effect of changing to a policy of owning
power generation facilities.
Year Ended March31,
2022
Actual(Millions of yen)

Real Estate Business

Energy Business

Asset Management Business

124,285

139,110

11.9%

146,500

Gross profit

26,40629,95413.4%

28,450Operating income

7,661

7,906

3.2%

9,890

Net sales

34,2489,045

21,800Gross profit

5,396

826

△73.6

Operating income

3,840

Net sales

1,315

△956

Gross profit

1,223

963

593

1,096

vs. Plan
Change△5.0%
5.3%△20.1%△84.7%

3,350△58.5%

―

1,690

―

△16.6%

1,200△75.3%

970

322△21.3%

△8.6%

270

19.4%

2,895

4,219

△45.7%

△0.7%

45.7%

4,000

5.5%

92

―

330

―

―

50

―

Net sales

△219

△35

162,744

153,472

173,500

Gross profit

33,11731,708△5.7%△11.5%

Operating income

11,8777,030△40.8%

11,900Net sales
Gross profit
Operating income

Total

Year Ended March31,
2023
Initial target

YoY change
Rate of change

Net sales

Operating income

Other Businesses

Year Ended March31,
2023
ActualCopyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

△241

△4.3%

33,100△4.2%△40.9%
6

Year Ended March31, 2023 Selling, general and administrative expenses (YoY)
Increased 3,437 million yen from the previous fiscal year and recording 24,677 million yen at Year Ended March31,
2023.
(Millions of yen)

1,223
745
798
671

29
△31



Booked 1,223 million yen as the initialcost of TOB implementation



Increased by 671 million yen due toincreased advertising and promotion
following the 50th anniversary of theCompany's founding.

Personnel expenses increased by 798
million yen due to aggressive investingin human capital.

24,677

21,240Year Ended
March31, 2022

Publicrelations
expenses

Advertisingexpenses, etc.
(Market ofproperties)

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Sales
commission(Liquidation)

Personnel
expenses

Other(including DX
outlays)

TOB related
Various
expenses

Year Ended
March31, 2023

7

Breakdown of changes in Year Ended March31, 2023 Operating income (vs. forecast)
4,869 million yen decreased at Operating income than originally planned for Year Ended March31, 2023, primarily
due to the impact of TOB implementation.
(Millions of yen)

11,900
EnergyBusiness(SGA cost
Decrease)△832

Effect of TOB

900△1,611

Facilities saleto a cancellation
Amount ofimpactReal EstateBusiness(Increased SGA
cost such as
human
resources and
DX)
Asset
Management
Business△1,103

Facilities sale
During theperiodPostponement

52△1,983

Other
Businesses(Mainly
Hotel)

7,030△291

Energy BusinessYear Ended March31, 2023
Initial plan

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Year Ended March31, 2023
Actual8

Year Ended March31, 2023 Consolidated Balance Sheets
In Total assets, inventories increased due to new purchases and Property, plant and equipment increased due to
TOB. Increased 118,196 million yen from the previous fiscal year-end. Borrowings also, increased.

End of March 2022

(Millions of yen)

End of March 2023

Change223,473

341,669

118,196

142,625

188,728

46,103

Cash and deposits

33,42847,872

14,444Inventories

91,653

120,236

28,582

Real estate for sale32,61634,147

1,531

Power generation facilities for
sale

1,001

3,375

2,374

Real estate for sale in progress

58,03682,713

24,67680,792

152,884

72,091

163,871276,527

112,655

75,010162,157

87,146

Notes & accounts payable

15,411

16,342

931

Borrowings (short-term, due within 1 year)

39,488118,067

78,579Bonds payable (within 1 year)

2,168

190

88,860114,369

Long-term loans payable

81,923

104,828△1,978

Bonds payable

4,070

4,015

59,601

65,142

5,540

4,819

4,819

ー

223,473

341,669

AssetsCurrent assets

Fixed assets

Liabilities
Current liabilities

Fixed liabilities

Net assets
Capital stock

Debt and Total net assets

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

25,50822,905△55

118,1969

Year Ended March31, 2023 Consolidated Balance Sheet (Comprising)
Assets for sale
6%

9%

Breakdown of borrowings andBonds payable(Millions of yen)
Total assets (341,669 million yen) (As of the end of March 2023)

42%

37%

188,728

Current assets
6%

Assets for sale in process1%
1%

New built-for-sale condominium

Liquidation

Newly built detached houses

Renewal resale

Power generation facilities

Other

Property, plant and equipment
1%

47,872

Short-term borrowings, etc.

Inventories

120,236

190

New built-for-salecondominium

Bonds payable (within 1
year)

74,871Long-term loans payable

104,828

16,441

Bonds payable

4,015

10,347

Others liabilities

49,4261

Newly built detachedhouses
88%

1%

33%
65%

276,527

Cash and deposits

Liquidation

10%

Liabilities

5%

Renewal resale

15,199Power generation facilities

3,375

Other Current assets

20,619Fixed assets

41%
17%
6%

4%

New built-for-sale condominium

Liquidation

Newly built detached houses

Renewal resale

Power generation facilities

Be not linked to assets

152,884

Property, plant andequipment(Liquidation assets)

27%

118,067

125,3622

Net assets

65,142

41,836

Shareholders' equity(Internal power generation
facilities)

81,598Subscription rights to shares

Intangible assets

8,376

Non-controlling interest

3,544

Investments and other assets

19,145

Other Net assets△59

1

Breakdown of liquidation assets

61,436

1%

220

6%
17%
38%
38%

2
Residence

Offices

Hotel

Commercial and logistics

Land, etc.

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

10

Year Ended March31, 2023 Breakdown of Assets, Borrowings, and Bonds payable••

Power generation facilities increased significantly due to the impact of TOB.
New condominiums also expanded due to steady purchases.

(Millions of yen)

Assets for sale

Assets for sale inprogress

Property, plant andequipment

Total assets

Borrowings andBonds payable

New built-for-sale condominium

2,070

72,801

518

75,39061,461Liquidation

15,880560

41,83658,27838,348

Newly built detached houses

2,151

8,196

-

10,347

7,832

Renewal resale

14,045

1,154-

15,19913,350Power generation facilities

3,375

-

81,59884,974

93,862

Other

-

-

1,407

1,407

-

Borrowings and Bonds payable not tied
to property

-

-

-

-

12,24537,52382,713125,362245,599

227,101

Total※※ Includes Bonds payable 4205 million yen

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

11

Review of Operations••

Real Estate BusinessNew built-for-sale condominium

Both Net sales and Gross profit increased year on year.
Strong sales curtailed discounts and improved profit margins.
Performance Actual(Millions of yen)

Year Ended March31, 2023
ActualYear Ended March31, 2022 Actual

YoY ChangeYear Ended March31, 2023
Initial Forecast

vs. Plan Change

Net sales

68,912

76,11010.4%

75,4000.9%

Gross profit

14,504

16,72415.3%

15,6007.2%

Gross margin

21.0%

22.0%

1.0P

20.7%

1.3P

Units sold1,830 units

1,861 units

31 units

1,780 units

81 units

Units sold excluding
JV

1,742 units

1,715 units△ 27 units

1,630 units

85 units

Percentage of metropolitan areas
Metropolitan areas

9

1

Capital area

4

Hokkaido area2

Chubu area

5

Tohoku area

3

Kinki area

6

Kanto-Koshinetsu area

7

Hokuriku area

8

Chugoku area

9

Shikoku area

10

Kyushu area

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Metropolitan
areas

47.4%

10

1% 4%

7

9

7
1

6

Year ending
March 31, 2022

27%
2

5

4%

9%
1

6

Year ending 37%
March 31, 2023

25%

2

3

5

21%

4

2%

16%

48.8%

10

3%
3%
0%

3%

22%

Metropolitan
areas

4

11%

3

8%

4%
Leben Yokohama Yamate 1 WARD COURT(Kanagawa) 228 units

12

Review of Operations•••

Real Estate Business

Liquidation

Both Net sales and Gross profit increased year on year.
Leveraging the strengths cultivated in the new condominium business, investing in and developing mainly
residential properties.
Profit margin improved due to the sale of residential properties developed in-house.
Performance Actual
21

Year Ended March31, 2022 Actual(Millions of yen)

Year Ended March31, 2023
ActualInvestment amount

30,217

24,464

Sales amount

25,870Gross profit
Gross margin

vs. Plan Change

30,00030,631△19.0%

18.4%

36,900△18.5%

5,191

6,707

29.2%

5,600

△17.0%
19.8%

20.1%

21.9%

1.8P

15.2%

6.7P

Investment achievements

Sales achievements

Residence

Residence

Offices

7%

Hotel
Commercial and logistics
Land, etc.

Year Ended March31, 2023
Initial Forecast

YoY Change

6%

14%

Hotel
Commercial and logistics

Total amount24%

4%

Offices

24,464
million yen

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Land, etc.

63%

Total amount15%

30,631
million yen

67%

13

Review of Operations••

Real Estate BusinessNew detached house

Renewal resale

Sales of detached houses: Net sales and Gross profit both increased year on year due to favorable sales.
Renewal resale: Gross profit margin increased from initial forecast due to price increases in the used market.
New detached house(Millions of yen)

Year Ended March31, 2022 Actual

Year Ended March31, 2023
ActualYoY ChangeYear Ended March31, 2023
Initial Forecast

Net sales

8,621

10,041

16.5%

12,000Gross profit

1,270

1,328

4.6%

1,600

Gross margin

14.7%

13.2%

13.3%

Units sold180 units

189 units△1.5P

9 units

220 units

vs. Plan Change△16.3%△17.0%△0.1P△ 31 units

Renewal resale(Millions of yen)

Year Ended March31, 2022 Actual

Year Ended March31, 2023
ActualYoY ChangeYear Ended March31, 2023
Initial Forecast

vs. Plan Change

Net sales

5,748

6,159

7.1%

5,200

18.4%

Gross profit

1,082

990

700

41.4%

Gross margin

18.8%

16.1%

△8.5%

13.5%

2.6P

Units sold

171 units

179 units△2.7P

8 units

140 units

39 units

Units purchased

249 units

274 units

25 units

280 units

Term end units
owned

475 units

570 units

95 units

615 units△ 6 units

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

△ 45 units

14

Review of Operations••

Real Estate Business

Real estate rental

Real estate
management

Real estate Other

Real estate rental: Progress at generally the same level as the same period of the previous fiscal year.
Property management: Gross profit declined slightly due to an increase in personnel costs.

Year Ended March31,
2022
Actual(Millions of yen)

Real estate rental

Real estate management

Real estate otherYear Ended March31,
2023
ActualNet sales

5,950

5,819

Gross margin

25.0%

Net sales
Gross margin

YoY change
Rate of changeYear Ended March31,
2023
Initial target

6,200

vs. Plan Change

21.6%

△2.2%

△3.4P

26.6%

△6.1%

8,084

8,809

9.0%

8,700

1.3%

22.3%

19.5%

23.0%

69,335 units

72,603 units△2.8P

3,268 units

73,800 units

△3.5P

51.8%

51.9%

0.1P

52.0%

Net sales

1,097

1,539

40.3%

2,100

Gross margin

97.5%

79.8%

△17.7P

61.9%

Number of managed
units
Ratio outside thegroup

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

△5.0P△ 1,197 units△0.1P△26.7%

17.9P

15

Review of Operations••

Energy Business ・ Asset Management Business ・ Other Businesses

In Energy Business, sales of power generation facilities were discontinued due to the implementation of TOB,
but revenue from electricity sales increased.
In AM business, acquisition-related fees decreased due to the impact of TOB.
Year Ended March31,
2022
Actual(Millions of yen)

Year Ended March31,
2023
ActualYoY change
Rate of changeYear Ended March31,
2023
Initial target

vs. Plan Change

Net sales

25,379――12,500―Gross profit

4,796

―

―

2,700

―

Gross margin

18.9%

―

―

21.6%

―

Net sales

8,869

9,045

2.0%

9,300

Gross profit

600

826

37.7%

650

△2.7%

Gross margin

6.8%

9.1%

2.3P

7.0%

2.1P

310MW

320MW

10MW

320MW

―

Net sales

1,315

1,096

1,200

Gross margin

93.0%

87.8%

△16.6%
△5.2P

80.8%

△8.6%

Net sales

2,895

4,219

45.7%

4,000

5.5%

Gross margin

3.2%

△0.8%

―

8.3%

―

Facilities sale

Energy BusinessElectricity sale

Operating generation
scale(cumulative)

27.2%※ Leben Clean Energy combined in April 2021

AssetsManagement Business

Other Businesses

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

335

7.0P

16

02
Full year Forecast for the Fiscal Year Ending March31, 2024
Earnings Forecast

Full year Consolidated Statements of Operations for the Year Ending March 31, 2024

(Millions of yen)

Year Ended March31,
2023
ActualYear ended March 31,
2024
Forecast

YoY change
Rate of change

Net sales

153,472

188,710

23.0%

Cost of sales

121,763

149,71023.0%

Gross profit

31,70839,000

23.0%

Selling, general and administrative
expenses

24,67725,3002.5%

Operating income

7,030

13,70094.9%

Ordinary income

5,033

12,700152.3%Net profit attributable to owners of
the parent

4,584

8,500

85.4%

WACC

1.6%

―

―

ROIC

0.8%

3.2%

2.4P

※ROIC = after-tax Operating income ÷ invested capital (invested capital = interest-bearing debt + equity attributable to owners of the parent)※WACC = Cost of debt × (1-T) × D/ (D + E) + Cost of Shareholders' equity × E/ (D + E) (T: Estimated at the effective tax rate [30.9%]) D: E interest-bearing debt: Equity attributable to owners of the parent

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

18

Year Ending March 31, 2024 Full year Performance Forecasts by Segment
Net sales/Gross profit/Operating income•••

Real Estate Business: Sales of newly built condominiums are expected to increase significantly due to factors such as anincrease in the number of Units sold.
Energy Business: Sales and earnings improved due to the impact of TOB, despite negative factors in Operating income.
Asset Management Business: Both sales and profits are expected to decline due to a decline in management fees.

Year Ended March31,
2023
Actual(Millions of yen)

Real Estate Business

Energy Business

Other Businesses

139,110

165,550

19.0%

Gross profit

29,95433,370

11.4%

Operating income

7,906

10,44032.0%

Net sales

9,045

13,79052.4%

Gross profit

826

4,520

446.8%

3,050―

Net sales

△956
1,096

820

Gross profit

963

610

△25.2%

Operating income

322

10

△36.7%Net sales

4,219

8,550

△96.9%
102.6%

Gross profit

△35

500

―

200

―

Net sales△241

153,472

188,71023.0%

Gross profit

31,70839,00023.0%

Operating income

7,030

13,70094.9%

Operating income

Total Total

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

YoY change
Rate of change

Net sales

Operating income

Asset Management BusinessYear ending March31,
2024
Forecast

19

Full year Forecast for the Fiscal Year Ending March31, 2024••

❶ New built-for-salecondominium

Real Estate BusinessNet sales and Gross profit are expected to steadily increase due to an increase in the number of Units sold.
The ratio of metropolitan areas is expected to decrease from the previous fiscal year in the number of units in the Tokyo
metropolitan area.
Earnings forecast
Year Ended March31, 2023 Actual(Millions of yen)

Year Ending March31, 2024
Forecast

YoY Change

Net sales

76,11092,70021.8%

Gross profit

16,724

20,40022.0%

Gross margin

22.0%

22.0%

―

Units sold

1,861 units

2,200 units

339 units

Units sold excluding
JV

1,715 units

2,050 units

335 units

Percentage of metropolitan areas
Metropolitan areas
1

Capital area

42

Chubu area

5

3

Kinki area

67
8

Metropolitan
areas

Metropolitan
areas
Hokkaido area
Tohoku area

97

Hokuriku area
Chugoku area

9

Shikoku area

10

Kyushu area

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

10

3%
0%

Kanto-Koshinetsu area
5

48.8%

3%

9

9%
1

6

Year ending
March 31, 2023

25%

37%

2
4

11%

3

8%

4%

16%

35.3%

10

2%

11%
1

7

Year ending
March 31, 2024
3

6

14%

27%
6%

2

2%

5

19%

3%
4

Leben Fukuoka Tenjin 1 TOWER(Fukuoka):153 units

20Full year Forecast for the Fiscal Year Ending March31, 2024

❷ New built-for-salecondominium

Real Estate Business

Progress of new condominium contracts

Year Ended March31, 2022

Current delivery

Next term delivery amountYear Ending March 31, 2024

Year Ended March31, 2023

Full year
Planning

Beginning of
periodTime point

Progress Rate

1,800 units

859 units

47.7%

Beginning of
periodTime point

Progress Rate

(58.7%)

2,200 units(2,050 units)

1,423 units(1,322 units)64.7%(64.5%)

7.9%

2,200 units

277 units

12.6%

Full year
Planning

Beginning of
periodTime point

Progress Rate

1,780 units

1,068 units(956 units)

60.0%

190 units(1,750 units)(835 units)(47.7%)(1,630 units)

1,500 units

32 units

2.1%

2,400 units

Full year
Planning※ Figures in parentheses exclude JV units and contract progress rate

Completion scheduleYear Ended March31, 2023
Units sold
Percentage of metropolitan
areasYear Ended March31, 2023
Units soldYear Ending March 31,
2024

1,861 units

2,200 units

1st quarter

414 units

177 units

48.8%

35.3%

2nd quarter

297 units

134 units

Third quarter

242 units

676 units

4th quarter

908 units

1,374 units

1,861 units

2,361 units

48.8%

35.2%

※ Major metropolitan areas: Tokyo metropolitan area, Chubu area, Kinki area

Total
Ratio of metropolitan areas

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Year Ending March 31,
2024
Units completed21

Full year Forecast for the Fiscal Year Ending March31, 2024•••

Real Estate Business
Liquidation

New detached house

Renewal resale

Liquidation: Carefully select investments and accelerate development of new residential properties.
New detached house: Aim to increase the number of Units sold. Implementation of profit margin improvement measures.
Renewal and resale: Aggressive procurement.
Year Ended March31,
2023
Actual(Millions of yen)

Liquidation

New detached house

Renewal resale

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Year ending March31,
2024
Forecast

YoY change
Rate of change

Investment amount24,46430,00022.6%

Proceeds from sales

30,631

30,000Gross profit

6,707

5,410

△2.1%

Gross margin

21.9%

18.0%

△19.3%Net sales

10,041

14,89048.3%

Gross profit

1,328

1,530

15.2%

Gross margin

13.2%

10.3%

Units sold189 units

240 units△2.9P

51 units

Net sales

6,159

10,66073.1%

Gross profit

990

1,260

27.3%

Gross margin

16.1%

11.8%

Units sold179 units

320 units△4.3P

141 units

Units purchased

274 units

300 units

26 units

Term end units owned

570 units

550 units△ 20 units

△3.9%

22

Full year Forecast for the Fiscal Year Ending March31, 2024••

Real Estate Business
Real estate rental

Real estate
management

Real estate other

Real estate rental: Aim to steadily build up as a stock and fee business.
Property management: Plans to increase the number of managed units as a pillar of the stock business. We aim to improve
profitability.

Year Ended March31,
2023
Actual(Millions of yen)

Year ending March31,
2024
Forecast

YoY change
Rate of change

Net sales

5,819

6,000

3.1%

Gross margin

21.6%

24.3%

2.7P

Net sales

8,809

9,400

6.7%

Gross margin

19.5%

20.6%

1.1P

72,603 units

77,000 units

4397 units

Ratio outside the group

51.9%

52.0%

0.1P

Net sales

1,539

1,900

23.4%

Gross margin

79.8%

72.1%

△7.7P

Real estate rental

Real estate management
Number of managed units

Real estate Other

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

23

Full year Forecast for the Fiscal Year Ending March31, 2024••

Energy Business ・ Asset Management Business・ Other Businesses

Energy Business: Shift from businesses centered on the sale of facilities to recurring revenue from electricity sales.
Asset Management Business: Continue to expand the size of assets under management.

Year Ended March31,
2023
Actual(Millions of yen)

―

3,770

―

Gross profit

―

800

―

Gross margin

―

21.2%

―

Net sales

9,045

10,02010.8%

Gross profit

826

3,720

350.1%

Gross margin

9.1%

37.1%

28.0P

Operating generation scale(cumulative)

320MW

345MW

25MW

Net sales

1,096

820

Gross margin

87.8%

74.4%

△25.2%Net sales

4,219

8,550

102.6%

△0.8%

5.8%

―

Energy BusinessElectricity sale

Other Businesses

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

YoY change
Rate of change

Net sales

Facilities sale

Asset Management BusinessYear ending March31,
2024
Forecast

Gross margin△13.4P

24

Financial Capital Strategy••

Dividend increased by 2 yen due to commemorative dividend to Year Ended March31, 2023, and dividend payout ratio was 52.5%
ROE declined due to the impact of TOB, but is expected to recover in the next fiscal year.
Dividends and Dividend Payout Ratio(Yen)

Commemorative dividend
2 yen implementation

30

Interim
Dividend payout ratio

60.0%

Term end

50.0%

52.5%
30.0%

20

38.4%
33.3%

23.5%

27.0%

26.7%
10

9
11.9%
4

0

2
15/3

31.0%
32.4%

18

13
11

10

11

31.5%

30.0%

18

14

20.0%

10

4

5

5

5

6

16/3

17/3

18/3

19/3

20/3

40.0%

21

4

4

4

21/3

22/3

23/3

6

7

24/3 (Forecast)

25/3 (Forecast)

10.0%
0.0%

Toward Improved ROEYear Ended March31,
2023 Actual

ROE
7.6%
※Excluding
the effect of TOB

10.1%

Year Ended March31,
2023 Actual

Return on Net sales

3.0 %Total assets turnover

0.5 Rotation
Financial Leverage

Strategy for the Year Ending March 31, 2024
Year ending March31,
2024
Forecast

more than

13%

Profitability

Improve profitability in the real estate andenergy businesses

Assetefficiency

Aiming to improve profitability while being
aware of asset turnover

SafetyAim to improve capital adequacy ratio while
controlling leverage ratio

4.7 Times
Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

25

03
Progress Under The First Medium-Term Business Plan
Progress of Medium-Term Management Plan

Medium-Term Management Plan Year Ended March31, 2023 Review

7 elements of the new Mid-Term Management Plan

Year Ended March31, 2023 Review

01.

Further growth of core businesses

Domestically, we promoted community development in cooperation with the government and local communities,
and conducted loss appraisal services for the affected areas. Overseas, targeting Thailand, we will promote thecondominium business by leveraging our domestic know-how.

02.

Maximized group synergies

Reorganized group companies and reviewed business segments through the transition to a holding company
structure. Takara Leben, an intermediate holding company, oversees 6 Real Estate Business companies, including
overseas bases, in order to streamline management.

03.

Optimized business portfolio

Conducted TOB to strengthen the foundations for Energy Business to grow. Aim to transform the businessportfolio by increasing the ratio of incomes in Energy Business over the medium to long term.

04.

Establishment of a stable financial
groundDespite a temporary rise in borrowings due to TOB in Takara Leben Infrastructure Fund Inc., the company has
established a scheme to secure stable recurring revenue. V-shaped recovery is expected from Year Ending March
31, 2025.

05.

Improvement of productivity andcreation of new services throughpromotion of DX

Based on DX Grand Design formulated in May 2022, the company contributed to improving productivity bypromoting paperless payment operations and various application operations such as approval requests. Aiming to
upgrade sales and customer contact points, began unifying customer information and digitizing customer behavior
analysis.

06.

Proactive ESG considerations

Formulated CO2 emission reduction targets to achieve carbon neutrality. As a measure to strengthen governance,
we conducted third-party evaluations after questionnaires and interviews on the effectiveness of Board of Directors
in cooperation with external consulting organizations.

07.

Personnel development andestablishment of the rewarding
workplace environment

Aggressive investment in human capital. Base pay increases for employees and initial salaries for new graduateswere increased. Conducted selective training to foster younger employees' thinking to solve problems from theperspective of managements. Cultivate a culture of direct recommendations to management.

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

27

Further growth of core businesses [1]Expanding urban redevelopment projects and excellent building projects nationwide, starting with the redevelopment project inToyama City, which received the first approval of the Basic Plan for Revitalization of Central City Areas.
Hokuriku area

Hokkaido and Tohoku areas

Business name

Address

Completion date

Type 1 urban redevelopment project in Chuo-dori farea

Toyama City inToyama Prefecture

March, 2012

Sakuramachi 1-chome Area 1st Class Urban
Redevelopment project

Toyama City inToyama Prefecture

June, 2018

Living and revitalization business in the Suehiro-Nishi
area

Takaoka City,
Toyama Prefecture

March, 2019

project to develop prime buildings in the east areaaround Takaoka Station

Takaoka City,
Toyama Prefecture

November, 2023

Business name

Address

Completion date

Hakodate Station-Front East District Class 1 Urban
Redevelopment project

Hakodate, Hokkaido

First Quarter, 2026

project for Improvement of Excellent Buildings, etc. in the
Shinmachi 1-chome Area

Aomori City, Aomori
Prefecture

April, 2023

Improvement of excellent buildings in Chiakubota-cho district

Akita, Akita Prefecture

December, 2025

project for Improvement of Excellent Buildings in the Chuodori 3-chome Area

Morioka City, Iwate
Prefecture

August, 2020

Furukawa Nanakacho Nishi Area 1st Class Urban
Redevelopment project

Osaki City, Miyagi
Prefecture

March, 2022

project for Improvement of Excellent Buildings in the Nihamacho Area

Fukushima-shi, Fukushima
Prefecture

January, 2022

Hosonuma-cho district community-based redevelopment project

Koriyama, Fukushima
Prefecture

June, 2023

Kanto area

Odawara Station-Front Joint Building
Rebuilding projectproject for Improvement of Excellent
Buildings, etc. in the Shinmachi 1-chome Area

Minamikoiwa 6-chome Area 1st Class Urban
Redevelopment project

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Business name

Address

Completion date

Minamikoiwa 6-chome Area 1st Class Urban Redevelopment project

Edogawa-ku, Tokyo

November, 2025

Odawara Station-Front Joint Building Rebuilding project

Odawara, Kanagawa
Prefecture

June, 2024

project for the Improvement of Excellent Buildings, etc. in the Chuo
District of Sakaemachi 2-chome, Odawara City (provisional name)Odawara, Kanagawa
Prefecture

Third Quarter, 2027

project for Improvement of Excellent Buildings, etc. in the Higashi
District of the 5th Block of Koya-cho (provisional name)

Hiratsuka, Kanagawa
Prefecture

February, 2028

Urawa Station West Exit South Takasago Area 1st Class Urban
Redevelopment project

Saitama City, Saitama
Prefecture

Second Quarter, 2026

Machikata-cho and Toyokomachi District Type 1 Urban
Redevelopment project

Numazu City,
Shizuoka Prefecture

August, 2027

project to Improve Excellent Buildings in the 1-Chome Area of
Marunouchi, Kofu City (provisional name)

Kofu City, Yamanashi
Prefecture

October, 2028

28

Further growth of core businesses [2]Established a subsidiary in Bangkok, Thailand and actively promoted condominium business in Thailand

TargetBangkok

Kave Seed Kaset, the second Thai building project
Summary

Name: Kave Seed Kaset
Location: Soi Phaholyothin 34, Sena Nikhom, Chatuchak Bangkok, Thailand
Site Area: 6043 m2
Structure and scale : Reinforced concrete structure, 8 stories above ground, 3 buildings
Total units: 600 units
Parking: 222 spaces
Seller: ASSETWISE PUBLIC COMPANY LIMITED
Takara Leben(Thailand)Co.,Ltd.
URL : https://kavecondo.com/condominium/kave-seed-kaset/※As of November 2022

Image

Third Thai Building project "Atmoz Flow Minburi"
Summary

Name: Atmoz Flow Minburi
Location : 94 Sihaburanukit Rd, Khwaeng Min Buri, Min Buri, Bangkok
10510, Thailand
Site Area: 9652 m2
Structure and scale : Reinforced concrete structure, 8 stories above ground, 3 buildings
Total units: 739 units
Parking: 235 spaces
Seller: ASSETWISE PUBLIC COMPANY LIMITED
Takara Leben(Thailand)Co.,Ltd.
URL : https://atmozcondo.com/condominium/atmoz-flow-minburi/※As of February 2023

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Image

29

Setting Medium-and Long-Term Targets for Reducing Greenhouse Gas Emissions [E]••Establishment of targets for greenhouse gas emissions from the Group's business activities in order to achieve carbon neutrality
by 2050
Aim to reduce emissions by 2050% by Fiscal Year 2030 (compared to Fiscal Year 2020) and achieve zero-emissions by Fiscal
Year 2050 (Scope1 2*)

MIRARTH HOLDINGS, Inc. Group Goals for achieving carbon neutrality
Group-wide greenhouse gas emissions

50% reduction by FY2030 (compared to FY2020), net zero by FY2050* Subject to Scope1 2

Greenhouse Gas Emissions Reduction Image

development(1) Green Power Generation(2) Energy Saving(3) Conversion of company vehicles to EVs
Greenhouse
Gas Emissions
Greenhouse Gas
Emissions(4) Offset
Etc..

FY
※ Scope1: Direct emissions of greenhouse gases by business operators (burning city gas, etc.)
Scope2: Indirect emissions from the use of electricity, heat/steam supplied by other companies

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

30

Personnel development and establishment of the rewarding workplace environment [S]Formulated MIRARTH Holdings Group Human Rights Policy•

https://mirarth.co.jp/sustainability/social/humanrights/
Implemented measures to strengthen human capital based on the Basic Policy on the Personnel System•

Human Resources Management―

Various training programs such as selection ofyoung employees, DX/CX, data utilization,
etc.

―

Implementation of 360-degree evaluation―

Talent Management System
Implementation

Implementation of employee interviews――

Return to employees (approximately 2.5%
increase in wages)

Company-wide deployment of group
communication infrastructure―

Conducting Wellness Survey (HappinessIndex 4.51 / 7.0)

Employee Health Management•

Employee Health Management

Promotion of diverse humanresources

Encouragement of maternity leave, including
for male employees (50.0% take rate)※Year Ended March31, 2023 Actual――

Materiality•―

Promotion of Well-being measures

Telework system introduced

Helping diverse humanresources perform well―

Introduction of a areaal employee system―

Increasing the ratio of female managers―

Women thrive project

KPI

22/3 Actual

23/3 ActualStress check
Medical examination rate (100%)

85.0%

87.9%

Percentage of female
managerial staff (9.5%)

7.3%

11.0%

Per capita Training hours(24 hours)

17.9 hours

28.3 hours

60.1%

68.7%

Percentage of paid holidays taken(70%)

Promoting a Corporate Culture in which Diverse Human Resources Can Work and Expanding the Personnel System
Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

31

Strengthening Governance [G]Conducting board effectiveness evaluation questionnaires, interviews, and third-party evaluations in cooperation with outside
consulting firms

Improving the Effectiveness Evaluation for
the Next Fiscal Year

Year Ended March31, 2022
Implementation Actual
It is generally a positive evaluation,
It was confirmed that the effectiveness of the entire
Board of Directors was ensured.
•As a result of expediting the delivery of advancematerials and briefings in advance, the evaluation ofthis item has greatly improved.

•

It was pointed out that even though the opinionsfrom inside directors were regarded as more than
before, a more free and liberal debate was necessary.

•

It was highly evaluated as having appropriately
Supervise the efforts for the implementation of DX.

•

•

4

Identification of issues and•1

Organize important items based on

consideration of improvement

management strategies and themeasuresbusiness environment

Act

Discussion at Board of•Plan
Examination of questionnaire items※

Directors
Year Ended March31, 2023 Initiatives•

Third-party evaluations,

•

Check

and Audit & Supervisory Board
Do

Implementation of feedback•3

members

Confirmation of issues andimportant items

Conducted surveys of all directors•

2Interviews with all directors andsome Audit & Supervisory Board
members※

Established a total of 14 items and 52 questions, including the structure, operation, anddiscussion of Board of Directors, the performances of inside and outside directors, and dialogue
with stockholders (investors)

Further strengthen governance and improve objectivity and transparency
Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

32

[Adjustment] Medium-Term Management Plan Targets Consolidated Statement of Income
While Real Estate Business progressed as initially planned, significant changes in the earnings structure occurred due to TOB's
implementation of Energy Business postponement of the planned sale of power generation facilities and the incurrence of TOB
upfront costs. Accordingly, the numerical targets were revised.
Year Ending March31,
2024
Forecast

Year Ending March 31,
2025
Forecast

153,472

188,710(1,610)200,000(△3,700)

33,11731,70839,000(3,800)42,300(3,600)

Selling, general and administrative
expenses

21,24024,67725,300(3,300)25,300(2,300)Operating income

11,877

7,030

13,700(500)

17,000(1,300)Ordinary income

10,258

5,033

12,700(200)

16,000(1,000)

Profit attributable to owners of parent
Net income

6,215

4,584

8,500
(―)

10,700
(700)

ROIC

4.7%

0.8%

3.2%

3.7%

WACC

1.2%

1.6%

―

―

Year Ended March31,
2022
ActualYear Ended March31,
2023
ActualNet sales

162,744

Gross profit(Millions of yen)

※ROIC = after-tax Operating income ÷ invested capital (invested capital = interest-bearing debt + equity attributable to owners of the parent)※WACC = Cost of debt × (1-T) × D/ (D + E) + Cost of Shareholders' equity × E/ (D + E) (T: Estimated at the effective tax rate [30.9%]) D: E interest-bearing debt: Equity attributable to owners of the parent※( ) Change with the previous medium-term management plan

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

33

[Adjustment] Medium-Term Management Targets by Segment
Net sales/Gross profit/Operating income
Build a foundation for stable growth by steadily growing Real Estate Business and developing Energy Business from flow to stockYear ending March31,
2024
Year Ended March31, 2022 Year Ended March31, 2023
ActualActualForecast(Millions of yen)

Real Estate Business

Energy Business

Asset Management
Business

Other Businesses

Net sales

124,285

139,110

165,550

176,970

Gross profit

26,40629,95433,37036,130Operatingincome

7,661

7,906

10,44013,420Net sales

34,248

9,045

13,79012,700Gross profit

5,396

826

4,520

4,730

Operatingincome

3,840

3,050

3,160

Net sales

1,315

△956

1,096

820

1,070

Gross profit

1,223

963

610

810

Operatingincome

593

322

10

110

Net sales

2,895

4,219

8,550

9,260

Gross profit

92

500

630
310

162,744△241

200

Net sales

△219

△35

153,472

188,710200,000

Gross profit

33,11731,70839,00042,300Operatingincome11,877

7,030

13,70017,000OperatingincomeTotal

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Year ended March 31,
2025
Forecast

34

[Adjustment] Medium-Term Management Plan Key Management Indicators
Revised the initial key management indicators through the implementation of TOB
Adjusted key performance indicators
After revision

Before revision

E q u i t y
L

T

D / E
R

r a t i oV

R a t ioOE(

30% or more
※March 31, 2025 end

20% or more
※March 31, 2025 end

18.0%

Less than 60%

Less than 65%

66.6%

Less than 2.5 times

Less than 3.0 times

3.5 times

13% or more
※From the year ending March
31, 2024

No change

7.6%

( % )
%

)

( T ime s )(%)

ReferenceYear Ended March31, 2023 Actual

Changes in ROE
25.0%

more than 13%

19.7%
20.0%

17.4%

18.6%

13.3%

15.0%

14.3%
10.9%

11.0%
9.0%

10.0%

7.6%

5.0%

0.0%

15/3

16/3

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

17/3

18/3

19/3

20/3

21/3

22/3

23/3

24/3 Forecast

25/3 Forecast

35

04
Growth Strategy
Growth Strategy

Promotion of Purpose Management••

After restructuring into 4 business segments, shifted to a holding structure in October 2022.
Promote sustainability management centered on new growth and par paths through business structure innovation, andincrease the earning power of each business to become a future environmental design company.

Raison d'etr e

Our Purpose

To design sustainable environments for a happier future for both people and our planet.

Future Environmental Design Company

Real Estate Business

Energy Business[Core Businesses][Growth Businesses]

Balancing Regional Contributions and Business Expansion

Overseas expansion
Stable foundation for group growthEstablishing a Non-FIT business model
New driving force for group growth
Expansion of stock revenue

Asset Management Business

Other Businesses (construction, hotels, etc.)[Stable Earnings Businesses]
Aggressive expansion of scale of assets undermanagement
Strengthen synergies within the Group

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Leveraging our know-how to take on the challenge of
new domains,
Creation of new value
Aim to establish as a next independent segment

37

Evolve business portfolio (Operating income percentage /EBITDA)
Aiming to increase Operating income by expanding Energy Business while steadily growing Real Estate Business
Operating income Percentage
With Energy Business, a recurring revenue business and growth business, while steadily growing its core Real Estate Business business
Expand Asset Management Business

Aiming for an earnings structure that balances flow income and stock income

30%

25%
Segment
Composition

95%

60%

5%

2030/32027/32023/3

20%

15%

EBITDA percentage

50%

Real estate

Aim for Real Estate Business : Energy Business = 1:1 on EBITDA ※ basis in the year ended March 31, 2030

Segment
Composition

85%

10%

55%

Real Estate Business

Energy Business

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

2027/3
Asset Management Business

45%

10%

5%
2023/335%

Other Businesses

45%

10%
2030/3※ EBITDA= Operating income + Depreciation and amortization
38

Growth Roadmap in Energy Business
Energy Business is the second main business after Real Estate Business
Focus on Non-FIT businesses
Vision[Foundation formation
period][Business model and financial structure
strengthening period][High Growth Period][Under verification]
Global expansion and import of business models
from overseas
With a view to renewable energy fuels[Securing stable power supply]
Establish a stable power supply system by securing
stable power sources other than solar power[Solving social issues]

Non-FIT power plant development / power
sales

Secure end users through PPA and tie-ups
with off-takers as a partner company tostably grow by securing stable customers
To help achieve carbon neutrality[Securing stable earnings]
Stable earnings and O&M expansion basedon FIT system
Power plant development/sales utilizing FIT system
And O&M business (excluding FIT)

The current
Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Medium term

Strengthening the financial foundation
Reuse as Non-FIT power plant after
completion of FIT

Long pull
39

Our Energy Business Performance••

Achieved the cumulative 360MW in power generation as outlined in the medium-term management plan ahead of schedule
Aiming for Regional Revitalization through PPA Expansion as a Business Model for "Exit FIT"

Power Generation Scale (Cumulative)
Own holdings

Sold off

Regional microgrid concept

Projects under development and planned

Achieve local production for local consumption of electricity within the region, and use existing
power systems as emergency power sources
Project Example

89

231

Tomakomai City Koyocho Regional Microgrid Concept40

Microgrid section
1 low-pressure facility

360MW

Koyo Junior High School(evacuation center)1

FIT prices of 32
yen or more
exceed half

9

Amount to be secured
FIT prices within 360MW
8power line

Koyo Iki Iki Clinic

commercial
electric power

2

Composition ratio
7

6

Gas
5
4

Cogeneration
Power Plant

3

1 40 yen

5%

4 27 yen1%

7 21 yen5%

2 36 yen44%

5 24 yen10%

8 18 yen13%

3 32 yen3%

6 22 yen1%

9 14 yen or less19%

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

storage battery※(computer) image

Construct a community symbiotic microgrid and use on-site PPA in emergencies
Electricity is supplied to Koyo Iki Iki Clinic, a regional clinic for renewable energy, and Tomakomai
City Koyo Junior High School, a designated shelter in Tomakomai City.

40

TOB to Takara Leben Infrastructure Fund Inc. [1]••Decided to commence tender offer for Takara Leben Infrastructure Fund Inc., which was enacted on November 11, 2022
Stability improved by converting from flow income to stock income

Increase in stock revenue

Scheme diagram
Solar power generation facilities owned by Takara Leben Infrastructure Fund Inc.
after going private were transferred to Green Energy LLC.

When selling power generation facilities
Earnings

Before tender offer

After delisting and asset trading

Rental scheme

Direct holding

Takara Leben infrastructure
investment corporation

Electricity sales

limited liability company

month

Focus on flow revenue
Earnings are concentrated during the sales
period of power generation facilities

electric
power
company

green energy

Electricity sales income

investment

Rent
fee

investment

rent

Income fromelectricity
sales
Other
investor

electric
power
companIf you own a power generation facility
Earnings

electric power sellingmonth

Expand EBITDA by integrating ownershipand power generation

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Focus on stock earnings
Improved stability

41

TOB to Takara Leben Infrastructure Fund Inc. [2]••This TOB improved the stability of Energy Business by expanding stock earnings, and EBITDA *1 grew.
The final profit is expected to be more than 1 billion yen from the fiscal year ending March 2025.
Increased EBITDA

Projected Final Profit Growth from TOB
Trends in Net income attributable to owners of parent

EBITDA trends
Other Business

Following theimplementation of thisTOB

Energy Business

250
Energy Business(after implementation of this TOB)

222

200

145

150

44

156
134
19

63

100

※2

99

Expenses incurred by TOB temporarily fall, but are expected torecover from the fiscal year ending March 2025 and remain stable.
(Millions of yen)
2,000

187

47

47

30

1,000

27
0

14

23/3
Actual25/3
Forecast

145
101

50

115

93

30/3
Forecast

113
85△1,000(1,000)(Billions of yen)0

FY2020.3

FY2021.3

FY2022.3

FY2023.3

FY2024.3(Forecast)

FY2025.3(Forecast)※1 EBITDA= Operating income + Depreciation and amortization※2 Year ending March 31, 2023 recorded a △ of 800 million yen at Energy Business due to the incurrence of
upfront costs due to the implementation of TOB
Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

(2,000)

Energy Business※ Considering only the impact of TOB
42

Energy Business Business Model Strategy
The environment surrounding our group

Currently introduced amount

FY2030 target introduction amount

sun light 69 billion kWhonshorewind
power7.7 billion kWhonshorewind
power
offshore
offshorewind
windpower
power Nearly 0 billion kwh
geothermal
geothermal 2.8billion kwh
water
waterpower
power 81.9 billion kwh
biomass 26.2 billion kwh

124.4 billion kwh
30.2 billion kwh

47.1 billion kwh

Digitization

Globalization

Our Energy Business History
Sales of solar condominiums
Develop mega solar power plants using FIT
systemFirst listing on the infrastructure fund market※Mainly due to the profit from power plant development from the sale

Development of other renewable energy power plants(Wind power plants, biomass power plants, etc.)

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Expansion of existing renewable energy development business "Development-Ownership-Power Sales StockBusiness"

Diversification
FIT▶PPAStarted development of a wide variety of renewable energies, including
onshore wind and microgrids. In addition, a survey of electricity storage
stations and hydroelectric power plants is being introduced and verified.

•

In addition to cow dung biomass, we are currently examining the feasibilityof joint development of technologies/know-how for renewable energy suchas biofuels and woodchips, and overseas development of supply chains.

10.7 billion kwh
6.8 billion kwh
93.4 billion kwh

Japanese Renewable Energy Market

To decarbonise

New business model

Governmental Target for 2030•

Small-and medium-scale solar
power plants
Expansion of Non-FIT R&D

LS Tottori Daisen power generation facility (14MW)

Utilize the "Non-FIT solar power
generation + off-taker" model forrenewable energy users to achievecarbon neutrality. Aggressively andspeedily expand to build regional microgrids in the future.
Expansion of stock business

LS Mihara power generation facility (11MW)

From sale of facilities to sale ofelectricity.
Local production and local
consumption of energy

Fujisan Asagi Biomass Power Plant

Electricity generated from cow dung issold to local residents. Contributing tolocal consumption of local produce andjob creation by solving theenvironmental problems of cow dung
Resource utilization model business

LWP Nagasaki Tsushima
Power Station

Tsushima City,
Nagasaki Prefecture

Ministry of the Environment's Model
Project for Utilizing Environmentally
Conscious Biomass Resources.
Leveraging our know-how, we arelooking to expand overseas.

43

Strengths of our group in the energy businessStable management capabilities through speedy development and accumulation of know-how from purchasing to O&M

Purchase

Flow

Strong ties with local communities
Network

Strengths

Finance•

Promotion of Public-Private Sector
Integrated Projects•

Develop prime properties throughnetwork with regional real estatecompanies nationwide (approx. 100
companies)

Development

O&M(Operation and management)

Speedy and differentiatedDevelopment capabilities

Long-standing know-how•

Extensive experience in developing
mega solar power plants to smalland medium-sized high-voltage
power plants (FIT, Non-FIT)•

Speedy completion of low-cost,high-precision power plants•

Procurement through Group Synergies with Asset Management Business•

Building relations with Collaboration and off-takers with external partners

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

•

Maintain and operate more than 250
solar power plants developed inhouse nationwide.

44

Growth potential and off-taker model for Non-FIT solar business••

Off-taker model alliance with a partner company in developing Non-FIT solar power
Providing Green Energy to RE100・ESG Management Companies over the Long Term through Electricity Retailers

Partner companies*
SMFL MIRAI Partners Company,
LimitedMitsui & Co. Plant Systems, Ltd.

Sumitomo Mitsui Banking Corporation

Osaka Gas Co., Ltd.

RE100
ESG
companies
Provision of RE100・ESG management toenterprises through electricity retailers

Planning to form alliances with numerous other companies

Co-development
collaboration

Long-term off-taker deal

Sales of green energy

MIRARTH Holdings Group

Off-taker
Conclusion of a contract

PJ
Purchase

PJ
Development

O&M(Operation andmanagement)※Partner companies that have announced plans to collaborate in developing Non-FIT solar power in the future

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

45

05
Appendix
Appendix

MIRARTH HOLDINGS Group's 50-years History

Takara PAG Real Estate Advisor
Leben Community

Takara Asset Management

Takara Leben(Thailand)
Takara Leven Realnet

2023

Takara Leben Real Estate Investment Corporation listed
Established Vietnam Hanoi Representative Office50

By Takara Leben Infrastructure Fund Inc.
Delisted due to tender offer

Beginning with the detached housesales business in, developing
the business centered on thecondominium business

Established Takara Construction Co., Ltd.
Detached housing lot sales businessStarted used equipment resale businessStarted real estate leasing business

Established Leben Community Co., Ltd.
Launched real estate management business

Own condominiums
Announced Lebenheim series
Launched condominium business

JASDAQ listing

Listed on the First Section of Tokyo Stock Exchange Market

New LEBEN condominium brandAnnounced THE LEBENAt Leben Solar Shiotani Power Station, the first projectStart of operation
Start of power generation business

By Takara Leben Infrastructure Fund Inc.
First listing on the infrastructure fund market

New condominium brandAnnounced NEBEL

Change in trade name due to holding company structureth anniversary

2022
2017
2016
2013

47
Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Leben Clean Energy Corp.
Leben Home Build

2018

19
72

LebenTrustLebense stock

2012
2004
2001
1994
1988
1982
1972

Takara Leben

Company Profile

Company Name

MIRARTH HOLDINGS, Inc.

Company Name

Takara Leben Co., Ltd.

Representative

Representative Director Kazuichi Shimada

Representative

Representative Director Kazuichi Shimada, Shoichi Akisawa

Address〒100-0005
Marunouchi, Chiyoda-ku, Tokyo 1-8-2
16th floor of steel building

Address〒100-0005
Marunouchi, Chiyoda-ku, Tokyo 1-8-2
16th floor of steel building

Representative
Number

03-6551-2125

Representative
Number

03-6551-2100

Incorporation

September 21, 1972

Incorporation

August 29, 1989

Capital stock

4,819 million yen

Capital stock

400 million yen

Number of
employees

1293 (consolidated) * As of 31-Mar 2023

Number of
employees

484 persons *As of 31-Mar 2023

Business Details

Business management of group companies

Business Details

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Planning and development of new condominiums, sales, realestate securitization, leasing, and distribution

48

Change in Business Segments
Business segment change implemented in April 2022
Reorganize business segments into 4 segments from the perspective of clarifying profitability and business responsibilities andeffectively utilizing management resources

Previous Business Segments

New Business Segment From April 2022

Real Estate Sales BusinessNew built-for-salecondominium

New detached house

Renewal resale

Liquidation

Real estate sales Other

Real Estate Rental Business
Real Estate Management Business

Real Estate BusinessNew built-for-salecondominium

Liquidation

New detached house

Renewal resale

Real estate rental

Real estate management

Real estate Other
Real estate sales business, Real estate rental business, Real estate management business, andpart of Other businesses integrated into Real estate business

Energy Business
Facilities saleElectricity sale

Other Businesses
Sales and brokerage fees
Management compensation
Revenue from repair work
Revenue from construction
work
OthersCopyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Energy Business
Facilities saleElectricity sale

Asset Management BusinessAmong Other businesses, the Management compensation is changed toAsset management business

Other Businesses
Hotel management

Construction Contract, etc.

49Consolidated Balance Sheet)(Millions of yen)

End of March 2021 End of March 2022 End of March 2023

(Millions of yen)

End of March 2021 End of March 2022 End of March 2023

28,682

33,61737,523Liquidation assets

55,97459,58458,278New built-for-salecondominium

9,000

10,5292,070

Residence

17,17823,25322,127

Liquidation

9,718

8,838

15,880

Offices

20,201

16,767

21,970

525

1,120

2,151

Hotel

9,547

9,199

9,966

9,437

12,12814,045

Commercial and logistics

6,834

8,667

3,658

―

1,001

3,375

Land, etc.

2,213

1,696

554

Assets for sale in process

43,76658,03682,713

118,558

127,649

227,101

New built-for-salecondominium

33,73045,47572,801

30,66541,014

61,461Liquidation

5,667

5,987

560

Liquidation

36,86040,182

38,348

Newly built detached houses

3,858

6,533

8,196

Newly built detached houses

3,880

6,757

7,832

510

39

1,154

Renewal resale

8,033

10,076

13,350Power generation facilities

25,445

13,90993,862

Be not linked to assets
Borrowings and Bonds
payable13,67315,70812,245

Assets for sale

Newly built detached houses
Renewal resale
Power generation facilities

Renewal resale

64,07063,739125,362――

518

Liquidation

40,58744,75841,836

Power generation facilities

22,50918,00981,598

972

970

1,407

Property, plant and equipment
New built-for-salecondominium

Other

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

Borrowings andBonds payable
New built-for-salecondominium

50

Acquisition of land for condominiums and supply area

Status of land acquisition for condominiums

Condominium supply area
Expanded nationwide to 39 prefectures already establishedNew purchases in Shimane and Yamaguchi prefectures

Nationwide Total 9,429 units

9
8

10

Metropolitan
areas

7
1

6

41.7%

Takara Leben's sales offices
Supplied and purchased areas
New purchasing area

2
3

5
4

1

Capital area

27.9%

6

Kanto-Koshinetsu area 14.6%

2

Chubu area

6.8%

7

Hokuriku area

7.9%

3

Kinki area

6.9%

8

Chugoku area

2.1%

4

Hokkaido area

3.1%

9

Shikoku area

2.3%

5

Tohoku area

20.3%

10

Kyushu area

8.1%

※ Major metropolitan areas: Tokyo metropolitan area, Chubu area, Kinki area

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

※ As of the end of March 2023

51

Liquidation business assets

Liquidation business assets
Existing and completed properties

Properties under development
1,673(Millions of yen)

(Millions of yen)

3,126

2,810

532

12,710
2,810

7,156

Book value at theend of March,
2023

9,416

23,067

Book value atthe end of
March, 2023

38,868

6,095

million yen

Planned book value
after completion

40,792

18,855

million yen

million yen

13,24015,874※ Includes liquidation assets recorded in Real estate for sale
Residence

Offices

Hotel

Commercial and logistics

Assumed asset value after completion(Millions of yen)
End of March 2023
End of March 2024

22,127

21,97028,141

End of March 2025

35,778From the end of March 2026 onward

35,7789,966
21,9709,966
24,094
29,11557,723 million yen

3,658

63,737 million yen

3,658
9,966

74,640 million yen

4,800
9,966

4,800

79,660 million yen※ 79,660 million yen has been secured including the complete component in the future.

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

52

Asset management scale•

In March 2023, Takara Leben Real Estate Investment Corporation, our main sponsor, conducted its fourth public offering.

•

We acquired 8 additional Total properties, including 4 properties that our group sold to the Bridge Fund.

300.0
Renewable energy

REIT

Private Placements

249.4
Serenite Namba Nishi

228.7

209.9

148.6

50.0
500

39.8
398

161.9

150.0
1,500

23%

131.6
1,316

98.0

37%
6%

34%

Residence
Offices
Hotel(Billions of yen)

8.3
End of March. 2017

※

779
77.9

23.0

End of March 2018

End of March 2019

End of March 2020

End of March 2021

End of March 2022

End of September
2022

End of March 2023

Retail Facilities and Other

1,000
100.0

End of March 2025
TargetCalculated on an acquisition-price basis. (For renewable energy, the impact of TOB established on November 11, 2022 is taken into account.)

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

53

Key Sustainability Themes and Materiality•

Identifying important themes and 15 materiality items from the perspectives of our Group and stakeholders•

By working on 43 KPI through our business, we will contribute to solving social issues and achieving SDGs (Sustainable
Development Goals), and aim for sustainable development across all Group companies.

Important theme

Creating Lifestyles
with Value

Materiality
1.
2.

3.
4.

Forming
Communities

5.
6.
7.

Responding to the diversification and globalization oflifestyles
Responding to changes in business models due to thedeclining birthrate, aging population, and population decline

Urban development and urban development
Establishment and maintenance of a corporate governancesystemPromoting Compliance
Employee Health Management
Helping diverse human resources perform well

KPI

1.
2.
3.

Proposal of new services for lifestyles
Supply of newly built condominiums overseas
NEBEL supplies

1.
2.
3.

Number of redevelopment projects
Sponsorship of local communities
Implementation of Board of Directors effectivenessassessment
Strengthen and Strengthening Corporate Governance System
Consideration of introduction of clawback clause
Implementation of anti-corruption education and training
Promote understanding of directors and employees regarding humanrights issues
Number of cases of unfair treatment
Understanding the recognition rate of the internal reporting
system through questionnaires

4.
5.
6.
7.
8.
9.

1.

Providing
Comfortable
Spaces ofHigh Quality

Developing
Environments
and Cultures

8. Providing Safe and Secure Products and Services
9. Improve customer satisfaction
10. Enhancement of building value

11. Provision of buildings and spaces that take the environmentand culture into consideration
12. Addressing global warming
13. Recycling projects
14. Effective use of resources
15. Response to Disasters

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

6.

On business processes and quality standards
Number of nonconformities
Implementation of a meeting to share preventive measures
Development of SQMS® masters
Percentage of Housing Performance Evaluation Sheets
Acquired
Accident frequency rate and lost time frequency rate(applicable: employees)
Number of lost-time injuries (for employees)

1.
2.
3.
4.
5.
6.

Establishment of environmental policy
To acquire and disclose CO2 emissions
Setting CO2 emissions reduction targets
Certification rate for energy conservation grade (flat 35)
Support for cultural cultivationZEH Condominium Certification

2.
3.
4.
5.

10.
11.
12.
13.
14.
15.
16.
17.

7.
8.
9.
10.
11.
12.

7.
8.
9.
10.
11.

Health Checkup RateStress check rate
Percentage of paid holidays taken
Employment ratio of the disabled:
Percentage of female managerial staff
Return to work for maternity
and childcare leave
Training hours per employee
Satisfaction with Sales Staff Survey

Audits of Customer Satisfaction Levels
Safety conference
Special patrol (safety check)Number of Safety and Health Training Programs Conducted(for Employees)
Actual of the supplier survey
Accident frequency rate and lost time frequency rate
(target: suppliers)

Acquire A or higher CASBEE certification
New operating capacity of mega solar power plants
Total generation scale
Maximize effective use of resources and water
Formulation of manuals for BCP measures

54

MEMO

Copyright © MIRARTH HOLDINGS Group. ALL RIGHTS RESERVED.

55

Handling of the Materials

This document has been prepared based on data as of March 31, 2023.
The plans and forecasts described in this document are our judgments at the time of preparation of the
document. We do not guarantee or promise their realization or achievement, and we do not guarantee orpromise the accuracy or completeness of the information. The Company has adopted the “AccountingStandard for Revenue Recognition” from Year Ended March31, 2022, but as the impact of Comparison on
the results of the previous fiscal year is immaterial, it is not considered. Details described in this document
is subject to change without notice.

MIRARTH HOLDINGS, Inc.
IR Office
TEL: +81-3-6551-2133
E-mail: irinfo@mirarth.co.jp