Integrated Report 2023
Fiscal year ended March 31, 2023

CONTENTS

Our Purpose & Values

Introduction
Our Purpose & Values����������������������������������������������� 1
50th Anniversary of the Group’s Founding������������������2
At a Glance������������������������������������������������������������������� 4
History of the MIRARTH HOLDINGS Group������������������6

At the launch of the new organization in October 2022, we defined the Group’s raison d’etre as it
moves toward the next stage of its existence, with the purpose “To design sustainable environments
for a happier future for both people and our planet.” This purpose includes the Group’s intent to go
beyond the framework of a general real estate business developer, and to evolve into a “future environment design company” that engages in co-creation with local communities and works toward thefuture of town planning.

MIRARTH’s Vision for the Future
A Message from the CEO��������������������������������������������������� 8
Value Creation Process����������������������������������������������������� 12
Explanation of the Value Creation Process������������������������� 14
Risk & Opportunity���������������������������������������������������������������16
Materiality������������������������������������������������������������������������������ 18

Strategies for Creating the Future for People and Our Planet
Review of Previous Medium-Term Management Plans������������ 20

Our Purpose

Progress under the Medium-Term Management Plan
(FY2021 to FY2024)�����������������������������������������������������������������������21

A Message from the CFO����������������������������������������������������������� 22
Financial/Non-Financial Highlights���������������������������������������������� 26
Strategies by Business Segment�������������������������������������������������28

The Future as Created Together with Our Stakeholders
Sustainability in the MIRARTH HOLDINGS Group����������������������� 38

To design sustainable
environments for a happierfuture for both people andour planet.

Passion &Inspiration

Contributing to the Reduction of Environmental Impact��������������� 41

To be passionate about creating vibrantenvironments and to inspire and be
inspired by people who share our vision.

Sustainability

Human Resources Strategy for Supporting Sustainable Growth��������� 44
Creating Value Together with Customers and Local Communities������ 48

To create a sustainable world where people,
nature, and society coexist in harmony.

Social Data������������������������������������������������������������������������������������ 51

Governance Supporting Value Creation
Corporate Governance����������������������������������������������������������������� 52
Board of Directors, Auditors and Executive Officers�������������������� 57
Dialogue: The Role of the Board of Directors in Realizing
a Future Environment Design Company�������������������������������������� 58
Compliance���������������������������������������������������������������������������������62

Our Values

Value
Creation

To continue to evolve and keep up
with the rapid change around us tocreate new value.

Risk Management����������������������������������������������������������������������63

Data
Eleven-Year Financial/Non-Financial Summary����������������������� 64
Corporate Data������������������������������������������������������������������������66

Diversity &Co-creation

Stock Information�������������������������������������������������������������������67

Other Disclosure Information

To value each individual’s ideas and cocreate a diverse and equitable environment
with the local communities.

https://mirarth.co.jp/en/ir/ Financial Reports Medium-Term Management Plan
Materials
 Annual Securities Reports Ordinary General Meetingof Shareholders
Information Others

Editorial Policy and Cautionary Statements
Regarding Forward-Looking Statements

Integrity &Trust

To generate a trusting relationship amongpeople and society through protection of
our safety and security.

This report, which for the most part provides details of the MIRARTH HOLDINGS Group
operations in fiscal 2022, the fiscal year ended March 31, 2023, has been designed toprovide stakeholders with a deeper understanding of our business activities, management
strategies, performance, and other non-financial information, including interaction withsociety and the environment.
This document was prepared to provide information regarding the Company’s consolidated results in fiscal 2022 and should not be construed as a solicitation for investment
in securities issued by MIRARTH HOLDINGS, Inc. The information provided in this report
is fundamentally based on data available as of March 31, 2023. Any forward-looking
statements including opinions and forecasts are based on the best judgments of management as of the time this report was prepared. Accordingly, HIRARTH HOLDINGS
does not guarantee or promise that any forward-looking statements will be realized
or achieved or provide any assurance as to the accuracy or integrity of information.
Moreover, the content of this report is subject to change without prior notice.

MIRARTH HOLDINGS Integrated Report 2023

1

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

50th Anniversary of the Group’s Founding

Evolving from a General Real Estate Business Deve loper to a Future Environment Design Company
with an Eye to Further Growth
The Group celebrated its 50th anniversary on
September 21, 2022, and then transitioned to aholding company structure while changing its nameto MIRARTH HOLDINGS in October 2022. We have
implemented a variety of initiatives to express our
gratitude to all of the Group’s stakeholders and tocommunicate our determination to evolve into afuture environment design company.

Topic1Create50th Anniversary Logo

Expressing our 50-year History ofRemaining Close to People and the City
We designed the 50th Anniversary Logo using
an image of the signature Company logo and aharmonic circle image combined with a street
scene impression. The circle symbolizes theCompany’s gentle embracement of the city likethe sun, while the five lines underneath express
its achievements accumulated over the past
50 years that have led to further prosperity of
the city and the Group.

Topic3

BuildProperties Commemorating the Takara Leben
Group’s 50th Anniversary

Properties Commemorating the Group’s 50th Anniversary Soldin Yamate, Yokohama and Tenjin, Fukuoka
We sold two Takara Leben Group 50th anniversary properties that realize“Innovation for a New Lifestyle.” The design symbolizes the main LEBEN
brand, with equipment specifications that reflect new lifestyles and common
facilities that meet diverse needs.

Mirai (Future) + EarthThis new moniker embodies our desire to evolve
into a company that makes a happier future for
the Earth and its people by contributing to allcommunities everywhere.

Topic2  
Celebrate

50th Anniversary
Celebration Events

Declaration of a New Beginning toBusiness Partners and All Employees
We held celebrations for employees in
September 2022 and for business partners
in October 2022 to commemorate the 50th
anniversary of the Group’s founding. Thesecelebrations were a great success, featuring
a video conveying our utmost gratitude, thepresident’s thoughts and initiatives, and theGroup’s history, followed by performances,raffles, and other events.

Leben Fukuoka Tenjin ONE
TOWEROpening of HOTEL THE LEBEN OSAKA to Commemorate the Takara Leben Group’s
50th Anniversary
We opened our first original brand hotel, HOTEL THE LEBEN OSAKA, in Minami-Semba, Osaka as a newconcept in satisfying accommodations. We leverage the know-how we have cultivatedin creating comfortable spaces for people to spend time to pursue accommodations
that provide true happiness under the concept of “the happiness of relaxation ishere too.”

About Our New NameWith Gratitude for 50 Years

Leben Yokohama Yamate ONE
WARD COURT

HOTEL THE LEBEN OSAKA

Topic4  Communicate

50th Anniversary Promotional Campaigns

50th Anniversary Wrapped Trains & Community Buses
50th Anniversary wrapped Toden Arakawa Line (also known as Tokyo Sakura Tram)trains designed with the 50th Anniversary logo went into operation from April 1, 2021. In
addition, 50th Anniversary wrapped Edo Bus community buses in Chuo Ward, Tokyo
that connect Higashi-Ginza, Tsukiji, Nihonbashi, and the Yaesu North Exit of Tokyo
Station were operated.

Toden Arakawa Line
Community bus in
Chuo Ward

Collaboration with Yumi Matsutoya for Radio Sponsorship & TV Commercial MusicWe are the main sponsor of Commercial Radio Station 99’s WE LOVE RADIO Listen to the Radio throughSpeakers Campaign with Yumi Matsutoya, a singer-songwriter who serves as ambassador and celebrated her
50th anniversary in 2022. In addition, we use her song Call Me Back for 50th anniversary television commercialsthat aired from September 21, 2022.

Commercial Radio Station 99’s campaign poster

Topic5

SupportSDG Initiatives to Commemorate the 50th Anniversary of the Group’s Founding

Main Sponsor of Ehime SDGs Koshien Supporting High School Students in Their Efforts to Achieve
the SDGs
50th anniversary event

50th anniversary event website

As a commemorative project for the 50th anniversary of the Group’s founding, we provided special support for
Ehime SDGs Koshien - High School Students’ SDGs Practice Project. We sponsored this project to raise awareness of the SDGs among high school students so they can acquire a correct understanding of and implement
SDGs independently.

https://mirarth.co.jp/corporate/50th/(Japanese only)

2

MIRARTH HOLDINGS Integrated Report 2023

Ehime SDGs Koshien poster

MIRARTH HOLDINGS Integrated Report 2023

3

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

At a Glance
Leveraging the knowledge built on its real estate business, the MIRARTH HOLDINGS Group is actively promoting
business diversification and fusion. Going forward, we will work to build a well-balanced portfolio by expanding ourenergy and asset management businesses while maintaining our real estate business as a mainstay pillar ofoperations.

MIRARTH HOLDINGS Group by the Numbers
FoundedConsolidated net sales

Real Estate Business

2.7%
0.7%

With the new built-for-sale condominium business serving
as our core business, we are also engaged in the liquidation
business, which undertakes sales of profit-generating realestate for both residences and offices, the sale of detachedhouses, the renewal and resale of condominiums as well as
the real estate rental and management businesses.

5.9%

Sales by segment

153.4
billion yen(FY2022)(FY2022)

90.6
%

1972

2022: Nationwide ranking ofcondominium units supplied soldby developer group

6th

Average age(Millions of yen)

Net sales

Gross profit

76,11030,631
10,041
6,159
5,819
8,809
1,539

16,724
6,707
1,328
990
1,255
1,719
1,229

■ New built-for-sale condominium■ Liquidation■ New detached house■ Renewal resale■ Real estate rental■ Real estate management■ Real estate other

37.7

6

7
8
9
10

(As of March 31, 2023)(2022)*2 Research contractor: Macromill, Inc.

Ranking: Top 10
1
2
3
4
5

3rd

(2022)*1 Source: Real Estate Economic Institute Co., Ltd.

Ranking

Condominium Brand
Recognition Ranking

Ranking: Top 10

2022 Ranking
Open House Group
Nomura Real Estate Group
Mitsui Fudosan Group
Sumitomo Realty Group
Daiwa House Group

MIRARTH HOLDINGS GroupMori Trust Group
Mitsubishi Estate Group
Iida Group
Nippon Steel Kowa Real Estate Group(Units)Ranking

5,721
4,240
3,420
3,109
2,575

1
2

2,387
2,214
2,153
1,861
1,850

3

4
5
6
7
8
9
10

2022 Ranking
Lions
PROUD

LEBEN
The Parkhouse
GRANDE MAISONPark HomesGALA
SURPASS
Brillia
CLIO

New built-for-sale condominium supply areas

Energy Business
Focusing on solar power, the MIRARTH HOLDINGSGroup’s energy business utilizes renewable energy andsells the electricity generated to electric power companies. The Group also works diligently to contribute tosociety by producing renewable energy. We are also
advancing initiatives toward the building of a businessmodel that does not rely on the feed-in tariff (FIT) system.

Consolidated gross profit

3.0%
2.6%

Asset Management Business

31.7

billion yen(FY2022)

94.5%

Utilizing the Group’s wealth of expertise, knowledge, andnetworks in real estate and renewable energy, MIRARTHHOLDINGS Group is entrusted with the management of
infrastructure, J-REIT, private placement, and otherfunds. Through its asset management business, theGroup provides excellent investment opportunities andsolid asset management services.

Other Businesses
Through its other businesses, the Group engages in awide range of activities including construction subcontracting, hotel management, and the provision ofrehabilitation-oriented day care facility services.

4

Flow Businesses

Stock and Fee-Based Businesses

The core of flow businesses is the new built-for-sale condominium
business, which mainly targets families, dual-income and single-person households in metropolitan areas such as the Tokyo
metropolitan area, and active seniors in regional city centers. In
addition, the MIRARTH HOLDINGS Group is engaged in renovating
and redeveloping buildings in partnership with government.

In the stock business, the MIRARTH HOLDINGS Group is building stable revenue from rent, and revenue generated from over 70,000 properties managed on
consignment. In addition, in the fee-based business, at two listed investment
corporations, investment management compensation was increased andthereby established a system that does not rely on flow businesses.

MIRARTH HOLDINGS Integrated Report 2023

Nationwide areas expanded to39

prefectures

The MIRARTH HOLDINGS Group aims to expand its supply area. To this end, theGroup will strengthen its system for purchasing land throughout Japan by proactively establishing bases in areas where it does not currently have a presence. We
newly expanded into Shimane and Yamaguchi prefectures in fiscal 2022.

Bases
Supplied and purchased area

Cumulative number of new built-for-salecondominium units supplied nationwide

38,807units(As of March 31, 2023)

In terms of the number of condominium units supplied in the Tohoku area in 2022, we ranked first,*3 having supplied 501 units to a
total of 20 buildings. Following 2015–2017 and 2019–2021, this was the seventh time for us to have been ranked first. We willcontinue to actively participate in local development projects to contribute to the revitalization of the regions and increase the numberof cities in our supply area.
*3 Researched by Kensetsu Shinbun Corporation

Percentage offemale managers*4

11.0

%

(As of March 31, 2023)

Number of managed
housing units

72,603 units(As of March 31, 2023)

Percentage of employees taking paid leave*4

68.7

%

(As of March 31, 2023)

Rentalrevenues¥5.8 billion(FY2022)

Assets undermanagement¥249.4billion(As of March 31, 2023)

Current power
generation capacity

320MW(As of March 31, 2023)*5 Including wholesale portion*4 Scope of calculation: Takara Leben Co., Ltd.
MIRARTH HOLDINGS Integrated Report 2023

5

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

History of the MIRARTH HOLDINGS GroupNet Sales¥153.4

Established as Takara Komuten Co., Ltd., in 1972, the Group has steadily expanded net sales by spreading into a
broader range of business fields. These fields include the general real estate business centering on new built-forsale condominiums and the energy business utilizing solar and other forms of renewable energy, as well as byforming a publicly offered REIT that was also ultimately listed on the REIT market. Having celebrated its 50th anniversary in September 2022, the Group will continue its evolution in order “To design sustainable environments for ahappier future for both people and our planet.”

billion

180

120

150

Surpassed

¥100

90

billion mark

120

¥50

90
60

billion markNet sales

Surpassed

60

¥10

50th

billion mark10th 20th1972(Billions of yen)

Surpassed

Trends in Net Sales

1972

Data

150

anniversary

anniversary

1982

1992

1982

30th

40th

anniversary

1993 1994

1995

1996

1997

1998

1999

2000

2001

2002

2004

2005

2006

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

2007 2008

2009

2010

2011

2012

30

anniversary

anniversary

2003

30

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

00
(For the period(For theMarch
period31)
2023 ended
2023 ended March 31)

History
1972 Established as Takara

Komuten Co., Ltd. in
Yamato-cho, Itabashi-ku

1994 Commenced sales of the “Leben
Heim” series of condominiums

2000 Changed the name of Takara
Komuten Co., Ltd. to Takara
Leben Co., Ltd.

2003 Listed on the Second
Section of the Tokyo
Stock Exchange

2008 Launched the new

Takara Leben brand2013 Entered the electric power generation business2016 Made Nikko Property Co., Ltd. (cur-rently Leben Trust Co., Ltd.) into a subsidiary company
Completed steps for Takara Leben
Infrastructure Fund to be the first to
list on the Tokyo Stock Exchange
Infrastructure Fund Market

2004 Listed on the First

Section of the Tokyo
Stock Exchange

2017 Launched the new condominium brand1975 Purchased the Company’s head
office the Nakaitabashi Head
Office Buildings (Dai-ichi Takara
Building)

1982 Launched the real estate rental

1996 Changed the name of Takara

2001 Relocated the Company’s headManagement Co., Ltd. to Leben
Community Co., Ltd.

office to Ikebukuro following
completion of the Takara Leben
Head Office Building

1999 Undertook the absorption-type

Listed on the JASDAQ market

merger of Takara Jyuhan Co., Ltd.

2010 Launched the detachedhouse business withdetached house built by
the Company in its own
right2006 Relocated theCompany’s head office
to the Shinjuku
Sumitomo Building

business

1986 Established Takara Jyuhan Co.,

Ltd. in an effort to expand sales
and intermediary operations

tom-built houses; exhibited products at theTachikawa Housing
Exhibition Center2012 Launched the new LEBEN
condominium brand1988 Established Takara

Management Co., Ltd. as a realestate management company

2011 Commenced sales of cus-

6

MIRARTH HOLDINGS Integrated Report 2023

Harmonic Circle: The Group’s symbol is therepresenting customers, partners, and employees;
expanding organically to create harmony while supportcarrying out our corporate vision to “THINK HAPPInating with one another. The gradation of striking
sincerity pursued by everyone in the Group.

Established Takara AssetManagement Co., Ltd. as aninvestment managementbusiness

2014 Set up the Hokuriku Office
Made Oasis Co., Ltd. (currently
Takara Leben Realnet Co., Ltd.)
into a subsidiary company
Made Nikko Kensetsu Co., Ltd.
(currently Leben Home Build Co.,
Ltd.) into a subsidiary company

2015 Made Live Net Home Co., Ltd.

Established TAFUKO Co., Ltd.
(currently Leben Zestock Co.,
Ltd.)
Made the real estate
rental and managementbusiness Takara HousingCo., Ltd. (formerly Takara
Property Co., Ltd.) into a
subsidiary company

Origin of “Takara Leben”: The “Takara” that we have used in ourcompany name since the days of “Takara Komuten” refers to “treasure,” as in ahome is the treasure of a lifetime. The word “leben” added following the change
in our company name is German for “life, lifestyle and living,” which are keywords
essential when discussing a home. This represents the concept of hoping to offer
homes that are the treasure of a lifetime to as many people as possible.

“NEBEL”(formerly Takara Leben Tohoku
Co., Ltd.) into a subsidiary company; relocated to Sendai City,
Miyagi Prefecture
Made Jyutakujyouhoukan Co.,
Ltd. (formerly Takara Leben WestJapan Co., Ltd.) into a subsidiarycompany

Harmonic Circle, which is comprised of three rings,
expressing how they are linked to one another;ing each other. The three rings convey our hope ofNESS AND MAKE THE HAPPINESS” while resoblue to deep navy expresses the intelligence and2021 Established Leben Funding
LLC.

Made ACA Clean Energy Co.,
Ltd. (currently Leben Clean
Energy Co., Ltd.) a subsidiary
Set up the Nagoya Office2022 Established Takara Leben(Thailand) Co., Ltd.

Transitioned to a holding
company structure andchanged its name to
MIRARTH HOLDINGS, Inc.

Set up the Osaka Branch and the
Sapporo Office
Relocated the Company’s head office
to the TEKKO BUILDING in Marunouchi,
Chiyoda-ku

2018 Made PAG Investment Management

Ltd. (currently Takara PAG Real Estate
Advisory Ltd.) into a subsidiarycompany
Established representative office of
TAKARA LEBEN CO., LTD. in Hanoi City
Takara Leben Real Estate Investment
Corporation was listed on the Tokyo
Stock Exchange Real Estate
Investment Trust Securities Market

2019 Leben Trust Co., Ltd. merged (absorp-

tion-type) with Takara Property Co., Ltd.

Takara Leben West Japan Co.,
Ltd. changed its name to
Takara Leben Co., Ltd., took
over a portion of the businessof the former Takara Leben,
and completed the absorption-type merger of Takara
Leben Tohoku Co., Ltd.
Included Takara Leben
Infrastructure Fund in the
Company’s scope of consolidation as a subsidiary througha takeover bid

2023 This Fund is delisted

50th Anniversary logo: As we celebrated the 50th anniversary of ourWith Gratitude for 50 Years

founding in September 2022, we created a commemorative logo that incorporates
a Harmonic Circle and the impression of a city skyline into the design. The circle
symbolizes the MIRARTH HOLDINGS Group’s gentle, sun-like embrace of thecity, while the five lines underneath express its achievements, accumulated overthe past 50 years, which have led to the further prosperity of cities and the Group.

MIRARTH HOLDINGS Integrated Report 2023

7

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

A Message from the CEO

Promote the transformation of the business model
based on Our Purpose, to evolve into a “company thatdesigns the environment of the future.”
Fulfilling a Greater Social Mission as We Celebrate Our 50th Anniversary
The MIRARTH HOLDINGS Group celebrated its 50th anni-

We have defined the purpose of the Group as it moves

versary on September 21, 2022. Entering a new chapter intoward the next stage of its existence, as “To design sus-

our ongoing development, we then transitioned to a hold-tainable environments for a happier future for both people

ing company structure and changed the Company’s nameand our planet.” Drawing on the traditional “THINK

to MIRARTH HOLDINGS, Inc. on October 1, 2022.

HAPPINESS AND MAKE THE HAPPINESS” vision and

MIRARTH is a combination of the words Mirai (future in“Creating Together” mission of Takara Leben Co., Ltd., thisJapanese) and Earth. The new company name embodies

purpose takes into consideration the future expansion of

our determination to look beyond the boundaries of a gen-the Group’s overall business. In fulfilling our purpose, weeral real estate business developer and evolve into a com-have initiated various steps toward transformation, includ-pany that makes a happier future for the Earth and its

ing business segment reorganization with a view to creating

people by contributing to all communities everywhere.

a new business model.

FY2022 Business Environment and Performance Review
With the easing of restrictions on people’s movements

the sales price of new condominiums to continuously rise

geared toward preventing the spread of COVID-19, con-each year. In the energy industry, many companies andsumer spending and economic activities gradually recov-

public authorities are strengthening their efforts toward

ered in fiscal 2022. However, uncertainty surrounding thedecarbonization in a bid to achieve carbon neutrality by

future increased owing to the sharp rise in commodity

2050. As a result, the market is expected to expand.

prices on the back of fluctuations in raw material andIn light of these changes in business conditions, the tender

energy costs as well as foreign currency exchange rate. In

offer (TOB) for Takara Leben Infrastructure Fund, Inc. (TIF),

the real estate industry, the Group’s mainstay new built-for-announced and implemented in September 2022, wassale condominium business was supported by the contin-

executed as a necessary measure for the Group to achieveued strong willingness of customers to purchasefurther sustainable growth. Although this TOB was a major

condominiums amid the prolonged low interest rate envi-

factor in pushing down the Group’s consolidated net salesronment and other factors. While this sustained increase inand earnings in fiscal 2022, results in the core real estatedemand and nationwide decrease in the number of units

business exceeded plans owing to robust sales under-

supplied have resulted in a favorable supply and demandpinned by strong demand for new built-for-salebalance, soaring labor and construction costs have caused

condominiums.

Establishing a New Business Model to Enhance Long-Term Corporate Value
Kazuichi Shimada
Representative Director

8

MIRARTH HOLDINGS Integrated Report 2023

Transforming the earnings structure of the energy
business and making the energy and asset managementbusinesses the second and third pillar of our business

TOB, the goal is to shift the earnings structure in the energy

As I mentioned above, TIF’s TOB and inclusion in the

supposes the sale of power generation facilities with profits

Company’s scope of consolidation as a subsidiary was its

concentrated in the period in which the sale is made.

most prominent initiative in fiscal 2022. In conducting thisMoving forward, we will in effect refrain from sellingbusiness to stable earnings model. To date, the energy
business has adopted a flow-type business model that pre-MIRARTH HOLDINGS Integrated Report 2023

9

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

A Message from the CEO

developed facilities, and shift to a stock-type business thatin our Medium-Term Management Plan (see page 22 forgenerates stable earnings from revenue gained through thedetails). Our net income forecast for fiscal 2023 is in line

sale of electric power. We will nurture this business into awith initial plans. Performance forecasts at each level ofsecond pillar after the real estate business while expanding

profit for fiscal 2024 are expected to exceed initial plans as

EBITDA by integrating facility ownership and power genera-

the energy business enters a period of stable earnings. As

tion. In fiscal 2029, we are targeting a real estate businessfar as net income is concerned, we are projecting stableand energy business EBITDA ratio of 1:1.

income of more than 10 billion yen from fiscal 2024.

As far as the scale of development facilities is concerned,
we will shift from the development of mega solar power
plants using the FIT system to the development of smalland medium-scale power plants based mainly on Power
Purchase Agreements (PPAs), which are direct purchases
by electric power users. At the same time, we have established an off-taker model linked to long-term power sales
contracts with several partners, including Osaka Gas Co.,
Ltd. to stabilize PPA earnings and will work to put in placea de-FIT business model.
Moreover, we will expand assets handled by the asset
management business by incorporating solar power generation facilities into the Group’s assets. In the future, we will
expand the scale of assets under management by leveraging the high level of asset management capabilities developed as the first listed infrastructure fund in Japan, andToward becoming a “company that designs theenvironment of the future”
As I mentioned at the beginning of this message, our newly
formulated purpose cannot be achieved with a businessmodel that for the most part revolves mainly around realestate. Real estate property development is merely a single
point, so to speak. Starting from a developed property, wemust create a line that connects that property to electric
power (power generation facilities), map out an environment through the supply of renewable energy, and build ascheme to design a city that can revitalize the community.
PPA and other models help give shape to the designs
required to create these aspects.
We will help realize a sustainable society through theorganic combination of each business as a future environ-grow this business into the third pillar of our portfolio.
Due to these changes in the earnings structure, we haverevised the management indicators and performance goals

ment design company. While growing our energy businessby leveraging the strengths we have developed in our corereal estate business, we will create new value in otherbusinesses while securing stable earnings in the asset

fiscal 2020 and to achieve net zero emissions by fiscal

management business and enhancing our corporate value.

2050 in March 2023. In addition to conducting an

To build a long-term business foundation, we will further

employee happiness survey in October 2022, we are work-

promote sustainability management within the Group. Aftering to enhance our corporate culture and human resources

expressing our support for the Task Force on Climate-system to enable a diverse array of employees to play an

related Financial Disclosures (TCFD) recommendations in

active role. Among a host of initiatives, we will implement

2022, we set a target to reduce the greenhouse gas emis-

an average 2.5% salary base increase in fiscal 2023.

sions associated with the Group’s business activities by
50% by fiscal 2030 compared with the levels recorded in

Promotion of Purpose Management After restructuring into 4 business segments, shift to a holding structure in October 2022.
 Promotion of sustainability management centered on new growth and Our Purpose through business structure
innovation, and increase of the earning power of each business to become a future environmental design company.

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

To Our Stakeholders
For the MIRARTH HOLDINGS Group, 2023 marks a new

business model transformation. I am therefore committed

phase of sustainable growth over the next 50 to 100 years.

to ensuring that the entire Group looks beyond the bound-As a holdings company, our role is to clarify the direction inaries of the real estate business and is fully committed towhich the Group should steer to fulfill its purpose. In addi-

designing the environment in a broad sense thereby con-tion to promoting transformation through the execution oftributing to society. With this as a foundation, I will workbusiness strategies, our goal is to ensure the overall growthwith Group companies and stakeholders to enhance cor-of the Group as a whole.

porate value by clarifying responsibilities and authority,

From an operating perspective, further growth of the real

Future Environment Design Company

Real Estate Business[Core Businesses]

Balance of regional contributions and businessexpansionOverseas expansion
Stable foundation for group growth

Asset Management Business[Stable Earnings
Businesses]

10

MIRARTH HOLDINGS Integrated Report 2023

Aggressive expansion of scale of assets undermanagement
Strengthening of synergies within the Group

Energy Business[Growth Businesses]

 Establishment of a non-FIT business modelNew driving force for group growth E
xpansion of stock revenue

Other Businesses (construction, hotels, etc.)
Leveraging our know-how to take on the challenge of new domains and tocreate new valueAiming to establish as a next independent segment

while maintaining the speed and agility of management

estate business and establishment of a new energy busi-

decision-making that is one of the Group’s inherent

ness model are major themes going forward. As far as thestrengths.

energy business is concerned, we have already outlined a

As we work toward achieving our goals, we ask for theroadmap to 2030 and are promoting measures to achieve

continued support and understanding of all stakeholders.

established goals. However, these ideas and images are
yet to be fully shared throughout the Group. Serving as
both Group CEO and COO, I am responsible for further
instilling our purpose throughout the Group at this time of

October 2023

Kazuichi Shimada
Representative Director, Group CEO, Group COO
and President Executive Officer

MIRARTH HOLDINGS Integrated Report 2023

11

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

Value Creation Process
Our Group will leverage the three types of knowledge we have cultivated in our realestate business to our energy and asset management businesses. By demonstratingsynergies that transcend business fields, each Group company will go beyond theboundaries of a general real estate developer, evolving into a company that makes
the future of people and the Earth happier while aiming for sustainable growth.

External Environment
Awareness

Materiality

 Changes in the
direction of economic
policy Changes in lifestyles
 Segmentation of
housing needs Political instability,
economic recession Higher interest rates
 Low birthrate coupledwith an aging anddeclining population
 Requests by powercompanies to control
outputBusiness activities Surge in land prices
as well as raw
material andconstruction (labor)costs
 Difficulty in recruiting
human resources,
shortage of labor, anddecline in employee
quality

Climate change,
natural disasters,etc.
 Increasingly serious
global environmental
issues Incidence of natural
disasters, accidents,
etc.

P.1

Our

ValuesP.1

Business Development   Leveraging Real Estate-related Knowledge

OutputOutcome

Support for diversifying lifestyles andglobalization
Responses tochanges to business models
brought by an ageing society anddepopulation

 Shareholders’ equity¥61.4 billion Interest-bearing debt

¥227.3 billion



Diverse human resources thatpossess expertise484
275

Construction andmaintenance of acorporate
governance system First-class registered architects

20 Redevelopment planners

4

Providing safe,
secure products
and services Training hours per employeeResponses toglobal warming Spread of infectious
diseases

Initiatives forrenewable energy

Governance, etc.

Effective use ofresources Incidence ofunauthorized accessand cyberattacks

Responses todisasters

MIRARTH HOLDINGS Integrated Report 2023

28.3

EnergyBusiness

Development
Capabilities
Management
Capabilities
Planning
Capabilities(As of March 31, 2023



Encouraging the strong roles ofdiverse employees

KPI

Number of units sold New built-for-sale condominiums

45(As of March 31, 2023)

Social and Relationship Capital
Trust, reliability and acollaborative framework

7 Elements of the Medium-Term

 Major Group companies

10 Business locations9(Including head office and overseas locations)(As of March 31, 2023)

Natural Capital
Effective use of resources Land and the global environment



Asset
Management
Business Proprietarily branded condominiums
LEBEN and NEBEL

Human Capital(FY2022)

Details P.28-37

Technologies and expertise that
respond to customer requests
 No. of trademark registrations(FY2022)

billion Real Estate Business
¥139.1 billion
 Energy Business
¥9.0 billion
 Asset Management Business¥1.0 billion
 Other Businesses¥4.2 billion

Intellectual Capital

Improving value ofbuildings

 Acts of terrorism,
riots, and war

Knowledge about realestate that underpins
sustainable growth No. of employees (consolidated) 1,293

Improving customer
satisfaction

Providing buildings
and spaces thatconsider the environment and culture

Real EstateBusiness* Scope of calculation: Takara LebenT SR over the past 10 years 125.9%
 Dividend per share¥22 annually¥153.4

Human Capital Real estate notaries

Encouraging
employment ofdiverse humanresources

Consolidated
Net Sales(As of March 31, 2023)

 No. of employees

Employee healthmanagement

A sound financial foundation thatenables further investments for growth

Ability to generate stable cash flow

Urban development
and creating towns

Promotingcompliance

Financial CapitalThree Business Pillars

Financial Capital Insufficient internal
control functions

12

PurposeP.18-19

Details P.16-17

Market environment

Input

Our

(FY2022) New built-for-sale detached housesManagement Plan



3.

5.

Further growthof corebusinesses

Optimized
business
portfolio

Improvement of
productivity andcreationof new services
through promotionof DX

Maximized groupsynergies

4.
Establishmentof a stablefinancial ground

7.
Personnel
development
andestablishment of
the rewarding
workplace
Proactive ESG
environment
considerations

6.

 Nationwide power generation facilities

Foundation
supporting
value creation

189 units(FY2022)

Cumulative number ofunits supplied1.
2.

1,861 units

Human
resources

Partners (customers andlocal communities)

Corporate
governanceCompliance andrisk management

P.44-47

P.48-50

P.52-56

P.62-63

38,807 units* New built-for-sale condominiums(As of March 31, 2023)

72,603 units(As of March 31, 2023)

Rental revenues* Scope of calculation: Takara Leben(As of March 31, 2023)

Intellectual Capital
Advaanced technologies and services
that respond to diversifying lifestyles
 Housing performance evaluation reportacquisition rate
100% Energy-saving rank certification rate
(Flat 35 for detached houses)
100% of detached houses
(FY2022))

Social and Relationship Capital
Building regional revitalization andrelationships of trust for the long termwith all stakeholders
N o. of new built-for-salecondominium contracts
2,242
 Increase in the number of units
under management
3,268 units
(FY2022)

Natural Capital

Number of managed
housing unitsA cquisitions by type of qualification
Real estate notaries
275
First-class registered architects
20
Redevelopment planners
4 Percentage of women in management
11.0%
 Percentage of persons with disabilities
employed2.0%

5.8 billion(FY2022)

Current power generation
capacity
320MW

Effective use of resources andinitiatives for renewable energy to
reduce environmental impact
 Increase
in renewable energy
generation capacity
10MW Greenhouse gas emissions3,781t-CO2
E nergy consumption 2,040.5 kL(crude oil equivalent)(FY2022)* Including wholesale portion(As of March 31, 2023)

MIRARTH HOLDINGS Integrated Report 2023

13

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

Explanation of the Value Creation Process

Over the 50 years since its founding, the Group has moved with the changing times and focused on the new built-for-salecondominium business while actively promoting business diversification and fusion, such as the energy and asset management businesses. Continuing to draw on that knowledge of real estate in the years to come, we aim to create new
businesses that contribute to the solution of social issues by strengthening collaboration within and outside the Group.

The liquidation business operated in the real estate busi-

business as a buyer of properties. Through our consolidated

ness segment is a business in which developed rental prop-

subsidiary Takara Asset Management Co., Ltd., we also

erties are sold individually to real estate funds. A listed real

invest in office buildings, retail properties and other proper-

estate investment trust (REIT) managed by Takara PAG Realties in an effort to diversify our assets under management.

Estate Advisory Ltd. brings a certain level of stability to ourBusiness Process Mapping

Real Estate-related Knowledge
Facilities
management

Development of
power generation
facilities

Real Estate BusinessKnowledge about realestate that underpins
sustainable growth

Development Capabilities: Leveraging the real estate net-product planning and sales. We possess the capability towork built by the Group over the past 50 years, we possess

rapidly plan products with high added-value that offer both a“housing lot purchasing capabilities” and “development capabili-

superior level of design characteristics and living comfort.

ties” that address a wide range of assets, including new built-for-EnergyBusiness

Development
Capabilities

Operation ofpower
generation
facilities

Infrastructure
fundsmanagement

Rebuilding and redevelopment

sale condominiums, profit-generating real estate, and solar power

Management Capabilities: Having installed “SQMS®,”

generation facilities, in a way that initiates from our value chain.

its proprietary service quality management system basedon the ISO 9001 international standard, the Group delivers

Planning Capabilities: In the development of our newa high level of management quality (See p. 49). We arebuilt-for-sale condominiums and profit-generating real estate,increasing the number of units targeted for management by

the Group accurately ascertains regional characteristics andleveraging our accumulated management know-how anddemand through a consistent approach, from purchase tothrough the acquisition of replacement properties.

Inputs
Housing lots
purchasing

Development

Sales

Real estate management

Real estate rental

Planning
Capabilities

Rental management

by means of its superior design capabilities and high-quality

MIRARTH HOLDINGS Group is putting in place a robust

management system. At the same time, the Group is working

financial foundation. At the same time, to respond in a

to enhance its brand value through aggressive advertising.

timely manner to the risks and opportunities that will arise

Repair

Salesfrom future changes in the environment, the Group isSocial and Relationship Capital: The major subsidiaries

focusing on ensuring balanced, stable financial capacity.

that operate under the MIRARTH HOLDINGS Group umbrella

The Group is also bringing about the diversification of its

leverage their respective strengths while cooperating withfinancing methods, strengthening its collaborations witheach other and enhancing collaboration. Demonstrating the

local financial institutions and utilizing sustainability loans.

synergies that exist within the Group, they work together withpartners, including customers, partner companies, and local

Energy Business

Asset Management Business

Brokerage

Management
Capabilities

Development of rental properties

Real Estate Business

RepairFinancial Capital: To support sustainable growth, theLiquidation

Asset
Management
Business

Rental management

Human Capital: The MIRARTH HOLDINGS Group posi-

communities, and contribute to finding solutions for society’s

tions human capital as one of its most important manage-

challenges through their business activities.

ment resources. To address rapid changes in the industry, we

REIT and private
fund management

are hiring and training talented human resources from within

Natural Capital: In addition to deploying a mega-solar

and outside the Group and, while respecting diversity, striving

power plant project by utilizing the knowledge gained

to unite our organization around common goals and values.

through its condominiums that generate electricity fromsolar energy, the Group is actively developing renewable

Our Group primarily focuses on the new built-for-sale con-

14

Following the introduction by the government of the feed-inIntellectual Capital: The technologies and know-how accu-

energy businesses, such as non-FIT solar power generation

dominium business. In 2010, we leveraged our residential

tariff (FIT) system for electricity generated from renewable

mulated throughout the Group serve as the source for creatingthat does not depend on FIT as its new business model,

real estate planning and development know-how to expand

energy in July 2012, we also entered the mega-solar busi-

business value. Owning multiple original condominium brands,

and promoting development of biomass and wind power

into the single-family home sales business through in-houseness in 2013. Leveraging our knowledge from having devel-

the Group is succeeding in setting itself apart from competitors

plants, and thereby contributing to a carbon neutral society.

construction. Based on our planning and development

oped condominiums in the Tokyo metropolitan area thatcapabilities for housing-related real estate, we are gradually

generate electricity from solar energy, we are actively working

Output/Outcome

expanding our business areas, including the liquidation

to utilize natural energy while also giving consideration to any

In the fields of real estate, energy, and asset management,Group combines its real estate, energy, asset managementbusiness of developing income-generating real estate andcontributions we can make to society. While our mainstay

our focus is on businesses that underpin the lifestyles of peo-and other businesses to meet diversifying housing needs andselling it to real estate funds, and the used condominium

new built-for-sale condominium business is susceptible to theple and local communities. In our mainstay real estate busi-

to contribute to finding solutions to social challenges. We aim

purchase and resale business. Each of the businesses in

effects of population decline, we are developing the energy

ness, we are aiming to effectively utilize management

to achieve perpetual growth by working toward the cities ofour mainstay real estate business segment functions

business not only by diversifying risks with the real estate

resources, and Takara Leben, which plays its part in thethe future through co-creation with our various stakeholders.

organically by leveraging their respective areas of expertise.

business but also by viewing energy as a new growth area.

Group, continues to play a central role in management. The

MIRARTH HOLDINGS Integrated Report 2023

MIRARTH HOLDINGS Integrated Report 2023

15

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

Risk & Opportunity
In light of changes in the external environment, the Group has identified major social issues with the potential to impact
value creation over the medium to long term, and derived the risks and opportunities related to these. Then, the Grouphas identified the materiality with which it must engage by clearly defining these risks and opportunities. By appropriately
addressing risks and leveraging opportunities, the Group will enable solutions to social problems and create value.

Social issues and external environmentChanges in the direction of economic policy(Stricter laws and regulations, changes inlegal interpretation and management policy)

Market environmentDiversificationof housing needs
Political instability, economic recession
 Rising interest rates
Business activities







Climate change, natural disasters, etc.

Obsolescence of products and/or services

Opportunities
Increase in commercialization projects due to utilization of subsidy system Ongoing low-interest housing loans, eased tax
reduction requirements Introduction of new systems to replace FIT apture demand generation/growth opportunitiesC
via new products and services Expansion in demand for compact condominiums
 Expansion of business areasResponse ursue new businesses such as PPAPStrengthening of information-gathering activities

Forming Communities
Developing Environments and Cultures

Relevant materiality
 esponses to changes to business models brought byR
an ageing society and depopulation
Urban development and creating towns
Providing buildings and spaces that consider theenvironment and culture
Initiatives for renewable energy












Low
birthrate coupled with an aging anddeclining population
 equests by power companies to conR
trol output
 urge in land prices as well as raw
Smaterial and construction (labor) costs
 ifficulty in recruiting human resources,D
shortage of labor, and decline in
employee quality
Increasingly
serious global environmental issues

Incidence of natural disasters andaccidents

Acts of terrorism, riots, and war

Spread of infectious diseases


Incidenceof unauthorized access andcyberattacks
Insufficient internal control function

MIRARTH HOLDINGS Integrated Report 2023

 eteriorating supplier operating conditionsDDecline in buyer sentiment due to increasing housing loan interest rates Increased funding costs due to changes infinancial institution lending attitudes and financing
market conditions
 Intensified competition including new entrants,
and rapid environmental changes







Decreasing demand for housingDecline in electricity sales revenueIncrease in opportunities to acquire land andproperties Increase in M&A opportunities
Increased demand for condominiums among seniors
Increase in opportunities for proposing solutions
to vacant house issues and aging buildings Development of compact cities

1. Further growth of core businesses

 edouble efforts to diversify financing methods
RImplement ongoing performance monitoring,countermeasures Strengthening of financial management Strengthening of overseas business upport for diversifying lifestyles and globalization
SProviding safe, secure products and services
Improving customer satisfactionImproving value of buildings

3. Optimized business portfolio

 upply condominiums in the center of regional cities
SSupply compact condominiums
 Strengthening of overseas business upport for diversifying lifestyles and globalization
SResponses to changes to business models brought byan ageing society and depopulation
Urban development and creating towns

1. Further growth of core businesses

Implementation of area strategies in energy businessInitiatives for renewable energy
Effective use of resources

1. Further growth of core businessesStabilize
procurement prices mainly by diversifying suppliers, decentralizing on a regional basis, and using
long-term contracts

Improving customer satisfactionImproving value of buildings oaring procurement pricesS Decrease in profit Slower sales due to higher selling prices
Lower
product and service quality
Incurring of compensation costs, brand image
deterioration Occurrence of occupational accidents

 aw materials/component supply shortages
RAsset damage Disruption to Group business facilities, supply
chains, and customers
Invigorationof renewable energy market due to
growing interest in environmental issues

Increased properties needing large-scalerenovation Increased interest in disaster-resistant buildings isruption to Group business facilities, supplyD
chains, and customers Geopolitical risk Supply chain fragmentation isruption to Group business facilities, supplyD
chains, and customers Disruption to business operations
 Decline in hotel and tenant occupancy rates
 eakage of confidential information and stopL
pages of production lines and logistics systems
 Payment of damages and fines, incurring
countermeasures expenses
Improperconduct, leakage of confidential
information
 Payment of damages and fines, incurring countermeasures expenses
 Delay in response to global environmental problems

4. Establishment of a stable financial
ground

3. Optimized business portfolio

2. Maximized group synergies
1. Further growth of core businesses
2. Maximized group synergies
6. Proactive ESG considerations

 evelopment of renewable energy generation facilities
DReduction of carbon dioxide emissions
 Formulation of climate change policy Building of internal system in compliance with external
evaluation organization standards Acquisition of green certifications

Improvingvalue of buildings
Providing buildings and spaces that consider the environment and cultureResponses to global warming
Initiatives for renewable energy
Effective use of resourcesResponses to disasters

6. Proactive ESG considerations

 romote earthquake-proofing of buildings and facilities,
P
implement countermeasures for tsunamis, torrential
rain, and floods Stockpile emergency supplies necessary for disasters Conduct disaster preparation drills Introduction of safety confirmation system

 mployee health management
EImproving value of buildings
Responses to global warming
Initiatives for renewable energy
Effective use of resources
Responses to disasters

6. Proactive ESG considerations

 onducting of credit checks on business partners
C
Verification of geopolitical risk Stabilize procurement prices mainly by use of diversifying suppliers, decentralizing on a regional basis, andusing long-term contracts

 rban development and creating towns
UProviding safe, secure products and services
Responses to disasters

 romote teleworking and enhance workplace healthPmanagement Differentiation of products and services(equipment, meeting of specifications, installation of
telework spaces through renovation)

 mployee health management
EProviding safe, secure products and services
Improving value of buildings
Responses to disasters

 trengthening of insurance contracts and informationS
security systems
Ensuring of confidentiality Restrictions on external access Establishment of internal regulations, conducting of training Identify issues and promote resolutions via Compliance
Committee and Risk Management Committee Enhancement of in-house checking system Conducting thorough compliance education

 onstruction and maintenance of a corporate goverC
nance system
Promote compliance reating demand for new products and services toCmeet changing lifestyles

5. Improvement of productivity and creationof new services through promotion of DX romoting compliancePEmployee health management
Encouraging employment of diverse human resources
Providing safe, secure products and services
Improving value of buildings

2. Maximized group synergies


Implementationof activities designed to improve
employee loyalty Personnel system reform, enhancement and upgradingof various training systems Implementation of branding penetration measures Housing performance evaluation report acquisition Holding Safety Conferences, building safe implementation management systems













Stricterregulations for greenhouse gas usage/
emissions and energy conservation
 More stringent building standards due to stricter
laws and regulations













Expansion of Corporate PPA

2. Maximized group synergies

 upport for diversifying lifestyles and globalization
SUrban development and creating towns
Improving customer satisfactionImproving value of buildings







Related medium-term management
plan strategies
1. Further growth of core businesses

 eflection of purchaser needs
RDiverse product offerings Supply compact condominiums
Governance, etc.

 ecreased number of commercialization projectsDdue to subsidy system revisions Lost business opportunities due to changes in FIT
 Stricter regulations for energy conservation
 Strengthening of regulations on building
standards
(Growth in DINKs, dual-income households,
seniors relocating to condominiums, development of telework)

16

Changes in lifestyles

Risks

Creating Lifestyles with Value	 Providing Comfortable Spaces of High Quality







7. Personnel development and establishment of the rewarding workplaceenvironment

5. Improvement of productivity and creation of new services through promotion of DX
7. Personnel development and establishment of the rewarding workplaceenvironment
5. Improvement of productivity and creation of new services through promotion of DX
6. Proactive ESG considerations

MIRARTH HOLDINGS Integrated Report 2023

17

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

Materiality
The Group has outlined the long-term social changes and issues of importance, and identified materiality in consideration of the interests of its stakeholders and the impact on its business. By engaging in sustainability activities
through its business, the Group will help to resolve social issues and to achieve the Sustainable Development
Goals (SDGs) with the aim of earning the trust of stakeholders and society, and of attaining lasting development.
FY2022Creating Lifestyles
with Value

Key Themes
We contribute to improving the richness of people’s lifestyles by creating
new value.

Policies

We form communities with stakeholders—such as local communities, trading partners, and employees—andaim for growth together.

Forming Communities







P
 rovide products and services that respondto changing social issues and needs.
 rovide lifestyles that harmonize resiP
dents and surrounding environments,
such as the LEBEN or NEBEL brands.
Contributing
to the revitalization ofregional areas through our regional city
revitalization business, which connects
urban and regional areas.

Stakeholders
Customers

Localcommunities,
NPOs, and NGOs

Customers
Improve
our ability to respond to risk
through thorough risk assessment andmanagement.

Shareholders
and investors

 rovide opportunities and environP
ments where a diverse range of people
can work energetically.

Local
communities,
NPOs, and NGOs


Corporate
activities that can respond tosocial needs with an emphasis on dialogues with our stakeholders.

Executives andemployees

Trading
partners

Developing Environments
and Cultures

Providing Comfortable Spacesof High Quality

Governments

We support the comfortable and safe
living of our customers by providing
products bringing great satisfaction to
our customers.







We contribute to a sustainable society
by actively working on environmental
issues, and at the same time, contribute to improving quality of life by providing opportunities for mental
activities such as learning and practicing the arts.







Improve customer satisfaction levels
through the use of our proprietary
Service Quality Management System(SQMS®).
 reate housing that combines bothC
design and habitability, pursuing theperformance of housing.

Improvebuilding value through regular
repairs and renovations to improvebuilding comfort, functionality, andsafety.

 educe greenhouse gas emissions
Rthrough supplying housing with highenvironmental performance and ourrenewable energy power generation
business.
 rovide seismic-resistant and fire-resisPtant housing that can withstand natural
disasters.
 rovide opportunities for cultural activiP
ties to our stakeholders.

Key Issues
 upport for diversifying
Slifestyles and globalization
P.33, 48
 esponses to changes toRbusiness models brought byan ageing society anddepopulation
P.48

 rban development andUcreating towns
P.50

 onstruction and mainteC
nance of a corporate governance systemP.52

 romoting compliance
P

P.62

 mployee health manageE
ment

P.47

 ncouraging employment ofEdiverse human resourcesP.46

 roviding safe, secure prodP
ucts and services
P.49
Customers

Executives andemployees

Trading
partners

Improving customer
satisfaction
https://mirarth.co.jp/en/
sustainability/social/customer/satisfaction/
Improving value of buildings
P.49

 roviding buildings andPspaces that consider theenvironment and cultureP.43
Customers

Localcommunities,
NPOs, and NGOs

Governments

 esponses to global warming
R

P.41

Initiatives
for renewable energy
P.43
 ffective use of resourcesEhttps://mirarth.co.jp/en/
sustainability/environment/
renewableenergy/
Responses to disastersP.49*1 Set as a mid-term target for FY March 31, 2025.
*2 Number of new projects participated in. In addition, eight projects are under construction or being promoted. (Including the Excellent Building Maintenance Project, etc.)*3 Conducted anonymous survey assessments and interviews targeting all directors and auditors, including external directors, utilizing external consulting firms.

18

MIRARTH HOLDINGS Integrated Report 2023

*4 In addition to establishing a separate Compliance Committee and Risk Management Committee, andappointing a Group Chief Risk Officer (CRO), the Group implemented measures to strengthen governance within the holding company structure.
*5 Conducted and continued study on review of the executive compensation system by theCompensation Committee.

KPIs

FY2023

Targets

Results

Targets

Propose new lifestyle services

5 projects

13 projects

5 projects

Supply of new condominiums for sale overseas

3 projects*1

3 projects

3 projects*1

Supply of NEBEL series condominiums

3 condos

3 condos

3 condos

Redevelopment projects undertaken

2 projects

2 projects*2

2 projects

Community sponsorships

10

16

10

Conduct the board effectiveness assessments–*Enhancement and strengthening of corporate governance system–

*4Consideration of introducing the clawback provisions–

*5

Implement anti-corruption education and training–

*6

Promote understanding of human rights issues among officers and employees–

*7

Number of cases of adverse treatment

00Survey to confirm the recognition rate of the whistle-blowing system–Percentage of employees receiving health checkups

100%

99.1%

100%

Stress check examination rate

100%

87.9%

100%

Percentage of employees taking paid leave

70%

68.7%

70%

Percentage of employees with disabilities

2.3%

2.0%

2.3%

Percentage of female managers

9.5%*

11.0%

9.5%*1

Percentage of employees returning to work after maternity or parental leave

100%

88.9%

100%

Training hours per employee

24 hours

28.3 hours

24 hours

Satisfaction rate of sales staff survey

90%

89.3%

90%

Number of nonconformities related to business processes and quality standards

10 or less1 project

10 or less

Implementation of preventive action sharing meetings

5 or more times

7 times

5 or more times

Training of SQMS® masters

2 or more persons

0*8

2 or more persons

Acquisition rate of housing performance evaluation certificates

100%

100%

100%

Rate of accidents and lost time injuries (*covered: employees)

0%

0%

0%

Number of lost workday injuries (*covered: employees)

0

0

0

Safety meetings

once a year

once

once a year

Special patrols (safety checks)

4 times a year

3 times

4 times a year

Number of safety and health training sessions (*training targets: employees)

twice a year

once

twice a year
A-rank acquisition rate 90%

3

1

0

Results of supplier surveys

No plan to implement in FY2022-

Rate of accidents and lost time (*target: suppliers)

1.83% or less0%

Acquisition and disclosure of CO2 emissions–

*

Setting CO2 emission reduction targets–

*9Percentage of houses certified for energy efficiency rating (Flat 35)

100% of detached houses

100% of detached houses

100% of detached houses

Sponsorship for culture fostering events

5

8

5

Acquisition of ZEH condominium certification

1

1

1

1.83% or less9

Acquisition of CASBEE certification with A rank or higher

1

1

1

New operating generation capacity of power generation facilities from renewable energy sources

20MW

10MW

20MW

Total power generation capacity

360MW*1360MW360MW*1

Obtaining quantitative data on resources and water and setting reduction targets

–

*10

Formulation of manuals for BCP measures

–

*11

*6 Partially implemented through compliance training.
*7 Formulate a group human rights policy and strengthen internal and external dissemination of the policy.
*8 No new recruitment due to promotion of measures by existing members.

*9 Target scope: Scope 1 and Scope 2.
*10 An internal system is being developed to establish data collection and aggregation.
*11 It is being reformulated in line with the holding structure.

MIRARTH HOLDINGS Integrated Report 2023

19

CONTENTS

Management
Indicators

Themes

Review of Previous Medium-Term Management Plans

Medium-Term Management Plan
(FY2018-FY2020)“Beginning of a new era for Takara Leben”— Diversifying flow businesses and expanding stockand fee-based businesses —Evolution through Sustainable Change— Innovation for a New Lifestyle. —132,005 million yen
26,886 million yen

Equity Ratio
LTV
D/E Ratio
ROE

FY2020  Net Sales
Gross Profit
Equity Ratio
LTV
D/E Ratio
ROE

Results

Strategies by Segment[New Built-for-Sale Condominiums]

Stock and fee-based businesses
profit ratio:

13.9%(FY 2014 )33.7%(FY2017 )• Targets include families, dual-income families, single-personhouseholds, seniors• Supply of compact condominiums that meet changes in thetimes[New Detached Houses]• Outskirts of Tokyo metropolitanarea, within 10 minutes walk ofstation• Thorough implementation ofshort-term return cycle

Plan Framework and Results• Diversifying flow businesses
Strengthening businesses
other than new built-for-salecondominium business in theTokyo metropolitan area

Percentage of new built-for-salecondominium units sold in local city
centers:

24.2%(FY 2014 )51.3 %(FY2017 )Business

16

MW(As of the endof FY 2014 )• Expanding stock andfee-based businesses
Asset management business,real estate rental business,real estate management business, real estate distribution

103 MW(As of the endof FY 2017 )

38,700units(As of the endof FY 2014 )

49,650 units(As of the endof FY 2017 )Net sales of real estate rental
business:

2,898(FY 2014 )million yen

5,472

million yen(FY2017 )• Schedules for completion of construction postponed due
to lengthened project schedules

Issues• Uptake of expanding used condominium needs• Increase number of owned units,develop a business cycle[Liquidation]• Diversification of exit points• Optimization of the balance
sheet• Increase in assets and debt due to expanded areas ofinvestment• Completion of construction concentrated in the fourth
quarter for a large number of projects• Rising personnel expenses due to an increase inpersonnel and workstyle reforms

MIRARTH HOLDINGS Integrated Report 2023

• Securing of stable revenue

New built-for-salecondominium

148,397 million yen
29,928 million yen
26.5%
58.0%
2.2 times
9.0%

Main Measures / Goals

Data



Number of new built-for-sale condominium sold: 1,861 units ationwide sales with a metropolitan area ratioNtarget of 50% in FY2024 ss an indicatorMetropolitan area ratio: 48.8%

Promote active penetration in redevelopment projects such as station-front redevelopment andrenewal project for aging condominiums

Promoted the Takaoka Ekimae East Area Excellent Building Improvement ProjectInvestment amount: 24.4 billion yen
Sales amount: 30.6 billion yen

Real EstateBusiness

Strong demand to purchase condominiums for actual availability isobserved; we have built a systemwith capacity of supplying 2,000
units annually

New detached
house




 aintain the investment pace of 30 to 50 billionM
yen per year
Actively promote rental residence development
 trengthen selection of purchasing areasSDevelop primarily in the Tokyo metropolitan area

Renewal resale im for 800 to 1,000 owned units by establishingAa stable renewal business cycle

Real estate rental

 im to steadily accumulate rental income stock asAstock-type fees through long-term ownership

Real estate
management

 ontinue to increase the managed units as aCstock business mainstay; aim for a total of over
80,000 managed unit in FY2024 et sales: 10 billion yen
NNumber of units sold: 189 unitsNumber of owned units as of the period-end: 570 units et sales: 5.8 billion yen
NGross profit margin: 21.6%








 umber of managed units: 72,603 unitsNPercentage of non-Group units managed: 51.9%

 eorganized Group companies and reviewed business segments through the transitionR
to a holding company structure Takara Leben, an intermediate holding company, oversees six real estate business companies, including overseas bases, in order to streamline managementRestructured the system by handpicking the supply areas due to thetough competitive environment
packed with contenders

Successful uptake of used condominium needs led to growth withincreased year-end owned units

2. Maximized group synergies

The amount of both investment andsales increased; secured a highgross profit margin from self-developed properties

3. Optimized business portfolio
EBITDA percentage

5%10% Real Estate Business Asset Management Business Other Businesses

10%Segment
Composition85%
FY2022

Declined due to expansion of liquidation sales

Achieved the plan through replacements from other company
properties

Facility sale timing was delayed dueto the postponed construction
schedule
Electricity sale profits declined due toearly depreciation following completion of large-scale projects

4. Establishment of a stable financial ground
5. Improvement of productivity and creation of newservices through promotion of DX• Operating income and ordinary income fell short of goals
due to increased sales and personnel expenses following
nationwide expansion

10%

35% 55%

45% 45%

FY2026FY2029* EBITDA= Operating income +Depreciation and amortization espite a temporary rise in borrowings due to the TOB in Takara Leben Infrastructure
D
Fund Inc., the Company has established a scheme to secure stable recurring revenue.

 he Company achieved paperless payment operations and various application operaT
tions such as approval requests. Aiming to upgrade sales and customer contact points,
began unifying customer information and digitizing customer behavior analysis

 ormulated CO2 emission reduction targets to achieve carbon neutralityF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

6. Proactive ESG considerations

7. Personnel development and establishment of the
rewarding workplace environment ase pay increases for employees and initial salaries for new graduates were increased
BConducted selective training to foster younger employees’ thinking to solve problems
from the perspective of managements

Performance Goals(Millions of yen)

Other Businesses
Increase in management compensation due to expansion of scale ofinfrastructure fund and REIT onducted a TOB to strengthen the foundations for the energy business to growCFormulated a medium- to long-term growth strategy in the energy business

Aim for the real estate business: Energy business = 1:1 on EBITDA* basis in the fiscal year ending March 31, 2030

 Energy BusinessElectric Power Generation(Currently Energy) Business• Expansion of revenue derived
from each segment

Progress in FY2022

 estructure the stable, nationwide supply systemR
Aim to record 2,200 units in sales in FY2024

Liquidation

Performance Results

Real Estate Management
Business• Development of environment-friendly renewable energy• Incorporation of post facility-salecommission income

business, etc.

20

[Renewal Resale]• Replace other companies inmanagement with competitive
services• Spin-off into other businesses,
such as large-scale repair works

Number of units undermanagement:

Governance Supporting Value Creation

Real Estate Rental BusinessCurrent power generation capacity:

The Future as Created Together with Our Stakeholders

Medium-Term Management Plan 7 Elements FY2022 Progress

Real Estate Sales Business• Profit ratio
Aim for 35% for stockand fee-based
businesses

Strategies for Creating the Future for People and Our Planet

1. Further growth of core businesses

25.6%
60.5%
2.3 times
14.3%

Plan Framework

MIRARTH’s Vision for the Future

Progress under the Medium-Term Management Plan (FY2021 to FY2024)

Next Stage 2019
(FY2015–FY2018)

FY2018  Net Sales
Gross Profit

Introduction

FY2021Results

FY2022
Results

FY2023
Initial Plan

FY2023
Revised Plan

FY2024
Initial Plan

FY2024
Revised Plan

200,000

Net Sales

162,744

153,472

187,100

188,710203,700

Gross Profit

33,11731,70835,20039,00038,70042,300Operating Income

11,877

7,030

13,20013,70015,70017,000Ordinary Income

10,258

5,033

12,50012,70015,00016,000Net Income Attributable to Owners of Parent

6,215

4,584

8,500

8,500

10,00010,700• Booked valuation write-downs of some hotel project
inventories as the impact of COVID-19 began to emerge

The real estate business, a core business of the Company,

earnings structure due to the discontinuation of thehas progressed according to initial plans. However, in theplanned sale of power generation facilities and the initial• Facility sales schedule postponed in the electric power
generation business due to the careful selection ofprojects and delayed constructionenergy business, the impact of making Takara Leben

costs associated with the tender offer. For that reason, theInfrastructure Fund a consolidated subsidiary through aCompany amended its performance goals set forth in thetender offer represented a significant change in theMedium-Term Management Plan announced in May 2021.

MIRARTH HOLDINGS Integrated Report 2023

21

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

A Message from the CFO

Logic Tree

By means of our three main pillar businesses—real
estate, energy, and asset management—we will
aim for further growth while realizing stable returns
to shareholders.

Capacity for
growth7 Elements of the MediumTerm Management Plan

Medium-Term Management
Plan Performance Goals

F urther growth of corebusinesses

N et Sales

O perating Income
17 billion yen

M aximized Group synergies

Growth inearnings
per shareO ptimized business portfolio

Profitability

Masashi Yamamoto

Increase of
corporate value

Director,
Group CFO and Managing Executive Officer

Performancelinked
dividends

Lower costof capital

Appropriate
shareholder
returnsSoundfinancial
structure

200 billion yen

 Improvement of productivity
and creation of new services
through promotion of DXE stablishment of a stablefinancial ground Number of new built-for-salecondominiums sold
 Metropolitan area ratio Renewable energy generation
capacity

N et Income Attributable to
Owners of Parent
10.7 billion yen Number of units undermanagement (percentage of
non-Group units managed)

 ROE Redevelopment projects
undertaken

13% or more

 Assets under management Percentage of female
managers

 Proactive ESG considerations
P ersonnel development andestablishment of the rewarding
workplace environment

Main Reference
Indicators

E quity ratio

20% or more Number of environment-related
certificates acquired

L
 TV

less than 65%

 Ratio of outside directors/
ratio of female directors D/E ratio less than 3.0 times

 Equity ratio
 LTV D/E ratio

Review of FY2022 and Revision of the Medium-Term Management Plan
From the perspectives of profitability, the clarification ofasset management businesses due to the impact of thebusiness responsibilities, and the effective utilization of

TOB for Takara Leben Infrastructure Fund, Inc.

management resources, the MIRARTH HOLDINGS GroupAs there was a major change in the earnings structure in

the original plan. In contrast, in the case of the performance

Turning to the performance forecast for fiscal 2023, theforecast for fiscal 2024, each level of profit is expected toreal estate business is progressing well despite the TOB’s

exceed the initial plan, as the energy business will by thenimpact, and thus net income is expected to be in line withhave moved into a phase of stable earnings.

reorganized its businesses into four segments in April 2022.

the energy business following the implementation of the

In October 2022, we transitioned to a holdings structure

TOB due to the postponement of a planned sale of power

and are aiming for new growth by innovating our businessgeneration facilities and the initial costs incurred by the TOB,

structure. Looking at business results for fiscal 2022, thewe changed the quantitative goals of the Medium-Termfiscal year ended March 31, 2023 on a consolidated, year-

Management Plan in May 2023. As far as key management

on-year basis, net sales decreased 5.7%, to 153,472 mil-indicators are concerned, the revised equity ratio is 20% orlion yen; operating income declined 40.8%, to 7,030 million

more (for fiscal 2024), the interest-bearing debt ratio (LTV) is

Promotion of Strategies toward Achievement of Medium-Term Management Plan
Targetsyen; ordinary income dropped 50.9%, to 5,033 million yen;less than 65%, and the D/E ratio is less than 3.0 times. ROE

Promoting investment in the energy businessas assets. In fiscal 2029, we aim to have the energy busi-

and net income attributable to owners of parent fell 26.2%,

remains unchanged at 13% or more. Due to the effects ofOriginally, the real estate business of the MIRARTH

ness account for 30% of our operating income, with an

to 4,584 million yen. Although gross profit in our real estate

the TOB, the equity ratio was 18% and ROE was 7.6% thisHOLDINGS Group accounted for 90% of its operating

EBITDA ratio of 1:1 between the real estate business andbusiness exceeded plans due to the strong progress interm, but I believe that we can achieve our goals by growing

income. To escape from a situation of high exposure to thethe energy business.

sales, revenue and earnings decreased in the energy andour energy business and increasing profits. Excluding thereal estate market, we will proceed with investments in the

Not relying on the feed-in tariff (FIT) system, the solar

energy business as our second pillar while making the real

power generation business in the MIRARTH HOLDINGS

estate business our core business.

Group is promoting off-site corporate power purchase

Financial Position
2019.32020.32021.32022.3

Amid calls for efforts to mitigate the effects of global

2023.3agreements (PPAs). Based on conditions as they currently

warming, many listed companies have adopted CO2

stand, the Company has already entered into business

reduction targets and are aiming to become carbon neutral.

partnership agreements with Sumitomo Mitsui Banking

With regard to the Company’s energy business to date, as

Corporation, Osaka Gas Co., Ltd., SMFL MIRAI Partners

Total assets (Millions of yen)

184,893

195,448

204,315

223,473

341,669

Shareholders’ equity (Millions of yen)

47,341

50,63454,194

59,10961,377

Cash and cash equivalents (Millions of yen)

21,16535,311

39,16933,42847,872

we have been generating revenue by developing and sellingCo., Ltd., and TEPCO Energy Partner, Inc. and received

Interest-bearing debt (Millions of yen)

111,821

114,036

118,570

127,969

227,385

power plants, high volatility has remained an issue. Frombusiness partnership offers from many other companies.

25.6

25.9

26.5

26.5

18.0

now on, aiming for stable profits with the increasing

The already burgeoning demand for renewable energy isdemand for renewable energy providing added impetus,

increasing, but we are conducting simulations on thewe will move forward with the transition from being a flow

assumption that electricity sales prices will fall due tobusiness centered on facility sales to a stock businessfactors such as the restart of nuclear power plants.

Equity ratio (%)

22

amount from the TOB’s impact, ROE would be 10.1%.

LTV (loan to value) (%)

60.5

58.3

58.0

57.3

66.6

D/E ratio (times)

2.3

2.2

2.2

2.1

3.5

ROE (%)

14.3

10.9

9.0

11.0

7.6

MIRARTH HOLDINGS Integrated Report 2023

based on electricity sales revenue by owning power plants

MIRARTH HOLDINGS Integrated Report 2023

23

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

A Message from the CFO

Aiming for stable growth in real estate businessIn the new built-for-sale condominium business, sales

sustainability-linked loan in December 2022 as part of its

The MIRARTH HOLDINGS Group regards improving its

prices are on the rise, but so are construction costs, andfund procurement activities. The funds raised will be used

asset turnover and creating a leaner balance sheet as its

thus we are basically forming plans for a gross profit margin

as business funds for renewable energy development andmost important issue. Working to further expand, with theof 20-22%. As far as the liquidation business is concerned,

other initiatives.

aim of stable growth particularly in its core real estate busi-

while monitoring rising costs, the Investment Development

ness, the Company is expanding urban redevelopment

Business Headquarters conducts purchases that take into

Investment in human capitalprojects and quality building maintenance projects through-consideration the internal rate of return (IRR) and cap rate.

Having established a new human resources system at

In addition to J-REITs, for which we are the main spon-

Takara Leben, our main subsidiary, in 2019, we are pro-out Japan. Additionally, we have established a local subsidiary in Bangkok, Thailand, and are actively promoting

sor, we will continue to expand the scale of private fundmoting a system that will consistently create the human

the condominium business in that country.

asset management.

resources necessary to achieve our management plans. In
addition to increasing salaries by an average of 7%, we haveadopted measures that include shortening working hours inan effort to retain human resources. As expertise in devel-

Measures to Improve Corporate Value

opment and purchasing leads to the accumulation of intel-

Use of sustainability finance

Company raised funds by means of positive impact

lectual capital, human resources development and retention

The MIRARTH HOLDINGS Group engaged in the procure-finance. To express our intention to contribute to theis an ongoing challenge in all three businesses of thement of funds and utilizes green loans through sustainabil-achievement of sustainability strategies through our busi-

MIRARTH HOLDINGS Group. At the same time, we are

ity finance, which evaluates ESG initiatives, information

ness activities, Leben Clean Energy, which is responsible

actively recruiting mid-career personnel who possess new

disclosure, contributions to achieving the SDGs, and otherfor the energy business division of our Group, obtained aareas of knowledge and are working to diversify our workforce.

factors. With the aim of expanding the positive impact andsecond opinion from Rating and Investment Information,

Currently, the percentage of female managers stands at

mitigating the negative impact of its corporate activities, theInc. (R&I) while also concluding a financing agreement for a

11.0%. We would like to increase this to 20% by working
to create workplace environments in which employees cancontinue working for a long time.

Stock Price Performance (TSR)
450.0
400.0

Shareholder Returns Policy

350.0

Considering the return of profits to shareholders to be one

the asset management business. I would like to actively

300.0

of its most important management priorities, the MIRARTH

promote dialogue with all our stakeholders so that share-

250.0

HOLDINGS Group maintains a policy of providing stableholders and investors can better understand our strategies,

200.0

dividend returns and has set a target dividend payout ratio

which are designed to improve financial soundness. Inof 30%-35% during the current Medium-Term Management

grateful anticipation of your ongoing support for thePlan. In addition to an interim dividend of 4 yen per share

MIRARTH HOLDINGS Group in the years to come.

150.0

TOPIX: Share index (including dividends) of return on investment

100.0

and a year-end dividend of 16 yen per share, in fiscal 2022

MIRARTH HOLDINGS TSR

50.0

we paid a 50th anniversary commemorative dividend of 2yen, for a total annual dividend of 22 yen per share and a

0.0

2013.32014.32015.32016.32017.32018.32019.32020.32021.32022.32023.3

March 31, 2013 as the basis for TSR

MIRARTH HOLDINGS
TOPIX-13.9%+5.8%

3 years

5 years

10 years

Annual rate

Cumulative

Annual rate

Cumulative

Annual rate

+2.6%

+0.9%

-21.8%-4.8%+125.9%+8.5%+53.4%+15.3%+31.8%+5.7%+142.1%

Notes:*T otal shareholder return (TSR): Total rate of return on investment that combines capital gains with dividends*T SR for MIRARTH HOLDINGS is calculated based on cumulative dividends and stock price fluctuations. TSR for TOPIX is calculated with a stock price index
including dividends. (Created by MIRARTH HOLDINGS using Bloomberg data and other sources.)*T SR values in the graph are indexed to market prices as of March 31, 2013 as 100 (assuming the stock was held until March 31, 2023).

24

MIRARTH HOLDINGS Integrated Report 2023

25

planning to pay an annual dividend of 24 yen per share,20

our performance forecast. Although on an upward trend,

Cumulative

+9.2%

(Yen)

dividend payout ratio of 52.5%. For fiscal 2023, we aretranslating to a dividend payout ratio of 31.0%, in line with

1 yearDividend per Share/Dividend Payout Ratio

10

forward, we will realize improvements in our profitability by

5matic EBITDA growth in the energy business, which is theengine for future growth, and stable earnings expansion in

0

18
14

38.4
27.0
2019.322

19

15

TSR has not kept up with the TOPIX rate of increase. Goingmeans of stable growth in the real estate business, dra-

16

24

(%)

60
50

52.5

40

32.4

31.5

31.0

30
20

2020.3

Dividend per share (left axis)

2021.32022.32023.32024.310(Forecast)

Dividend payout ratio (right axis)

MIRARTH HOLDINGS Integrated Report 2023

25

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

Financial/Non-Financial Highlights
Net Sales

Operating Income(Millions of yen)

(Millions of yen)

200,000

ROE(%)

15,000

153,472

160,000

9,000

80,0006,000

40,0003,000

Current Medium-Term
Management Plan

02020.32021.32022.3

52.5

60

10

5
Previous Medium-Term
Management Plan

Current Medium-Term
Management Plan

40

20
Previous Medium-Term
Management Plan

Current Medium-Term
Management Plan

Previous Medium-Term
Management Plan0

2019.32023.3

7.6

7,030

0

2019.3(%)

15

12,000120,000

Previous Medium-Term
Management Plan

Dividend Payout Ratio

2020.32021.32022.302019.32023.3Current Medium-Term
Management Plan

2020.32021.32022.32019.32023.32020.32021.32022.32023.3

Although sales in the real estate business increased 11.9% year on year,
sales in the energy business decreased by 73.6% from the previous fiscal
year, thus sales for the fiscal year ended March 31, 2023, totaled
153,472 million yen, down 5.7% year on year. The decrease in revenue inthe energy business was the result of a change in policy to secure profits
by owning power generation facilities to achieve stable growth going forward. The main reason for this was the absence of originally anticipatedsales of power generation facilities, due to having implemented the TOB
for Takara Leben Infrastructure Fund Inc. and other factors.

In the fiscal year under review, operating income decreased 40.8% year
on year, to 7,030 million yen. This was mainly due to an increase in selling, general and administrative expenses, as well as a decrease in profit
in the energy business due to the recording of initial costs associatedwith the TOB for Takara Leben Infrastructure Fund and the cancellation of
the sale of facilities.

ROE decreased by 3.4 percentage points from the previous fiscal year, to7.6% (10.1% excluding the impact of the TOB). Looking ahead, we will
aim to achieve ROE of 13% or higher in the fiscal year ending March 31,
2024, by strengthening the financial management of Group companies,
reducing selling, general and administrative expenses, and improving
profit margins.

The dividend payout ratio for fiscal 2022 was 52.5%, an increase of 21.0
percentage points compared with the previous fiscal year. This was
because our performance was lower than projected mainly due to theimpact of the TOB, but we decided to pay the dividend as planned inaddition to paying a 50th anniversary commemorative dividend of 2 yen.
Having positioned shareholder returns as one of the most important management issues under its Medium-Term Management Plan, the Group willcontinue to provide appropriate returns.

Net Income Attributable to Owners of Parent

Operating Income Margin

Current Power Generation Capacity

Number of Managed Housing Units(Millions of yen)

(%)

8,000

(MW)

12

(Units)400

72,60380,000

320
6,000

4,584

4,000

9

4.6

6

2,000

3
Previous Medium-Term
Management Plan

Current Medium-Term
Management Plan

02020.32021.32022.3200

40,000Current Medium-Term
Management Plan

20,000Previous Medium-Term
Management Plan

Current Medium-Term
Management Plan0

2019.32023.360,000100
Previous Medium-Term
Management Plan0

2019.3300

2020.32021.32022.32019.32023.3

Previous Medium-Term
Management Plan

Current Medium-Term
Management Plan

02020.32021.32022.32019.32023.32020.32021.32022.32023.3In the fiscal year under review, net income attributable to owners of parent totaled 4,584 million yen, down 26.2% compared with the previous
fiscal year. This was mainly due to a decrease in each level of profit due
to the impact of the TOB.

In the fiscal year under review, the operating income margin came in at
4.6%, a decrease of 2.7 percentage points from the previous fiscal year.

The MIRARTH HOLDINGS Group’s current power generation capacity,
including the portion sold, increased 10 MW compared with the previous
fiscal year, to 320 MW in the fiscal year under review. As a growth field,
we will increase the scale of power generation capacity.

In the real estate management business, the number of units under management is steadily increasing, amounting to 72,603 as of March 31,
2023, an increase of 3,268 units compared with the previous fiscal year.
We will continue to actively acquire properties for management, including
those managed by other companies, to realize stable revenue as a stockbusiness.

Equity Ratio

D/E Ratio

Percentage of Female Managers

Percentage of Employees with Disabilities(%)(Times)

30

(%)

4

3.5

12

11.0

(%)

3.0

2.0

10
2.0

18.0

20

8

2

1.0
6
Previous Medium-Term
Management Plan

Current Medium-Term
Management Plan

10

Current Medium-Term
Management Plan0

2019.32020.32021.32022.32023.3MIRARTH HOLDINGS’ equity ratio came in at 18.0% in the fiscal year
ended March 31, 2023, a decrease of 8.5 percentage points from theprevious fiscal year. The main contributory factor in this was the increasein debt due to the impact of the TOB. In a bid to achieve its fiscal 2024
target of more than 20%, the Company is working to secure a more stable equity ratio while diversifying its fund procurement methods.

26

Previous Medium-Term
Management Plan

MIRARTH HOLDINGS Integrated Report 2023

Previous Medium-Term
Management Plan

Current Medium-Term
Management Plan

4

2019.32020.32021.32022.32023.3

The D/E ratio for fiscal 2022 was 3.5 times due to a temporary increase in
short-term borrowings due to TOB settlement funds. With the aim ofachieving less than 3.0 times in the fiscal year ending March 31, 2025,
we will strive to maintain financial soundness.

Previous Medium-Term
Management Plan

Current Medium-Term
Management Plan0

2019.32020.32021.32022.32023.32019.32020.32021.32022.32023.3The percentage of female managers was 11.0% in the fiscal year ended
March 31, 2023, an increase of 3.9 percentage points compared with theprevious fiscal year, achieving the target of 9.5% for the fiscal year ending
March 31, 2025 ahead of schedule. Considering the promotion of women’s empowerment as one of its most important measures, the Grouphas implemented measures such as the launch of the Women’s Activity
Promotion Project Team and the introduction of a babysitter subsidy system.

The MIRARTH HOLDINGS Group is promoting diversity and inclusion initiatives with the aim of remaining a corporate group where diverse humanresources can excel. In the fiscal year ended March 31, 2023, the percentage of employees with disabilities was 2.0%, down 0.7 percentage
points compared with the previous fiscal year. This was mainly due to anincrease in the number of employees headcount due to the transition to aholding company structure.

* Scope of calculation: Takara Leben Co., Ltd.

* Scope of calculation: Takara Leben Co., Ltd.

MIRARTH HOLDINGS Integrated Report 2023

27

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

Strategies by Business Segment
Review of FY2022 and Progress of the Medium-Term Management Plan

Real Estate BusinessThis business is the mainstay of the real estate business, accounting for 49.6% of Groupwide net sales and 52.7% of gross profit for the fiscal year ended March 31, 2023,

New built-for-sale condominium

achieving year-on-year increases in both sales and profit.
Under our Medium-Term Management Plan, among the seven pillars that form our key

Trends in Net Sales and Gross Profit

Business Overview

strategies is the “further growth of core businesses,” in which we develop business with

(Millions of yen)

The new built-for-sale condominium business is a core category that
accounts for around 50% of total sales. The Group engages in the planning, development, and sale of the LEBEN and THE LEBEN proprietarily
branded series of condominiums and the NEBEL brand of compact
urban-type condominiums throughout Japan. Based on the concept ofideal, affordable housing that anyone can buy with confidence and peace ofmind, the MIRARTH HOLDINGS Group provides condominiums to a wide
range of generations, focusing mainly on first-time home buyers.

(Millions of yen)

120,000

92,70080,00040,00068,912

76,11014,504

101,500
21,50020,40030,000our sights set on the sustainable growth of the real estate business. In this business weconduct activities that are based primarily on the following three goals within the real

20,000estate business, each of which achieved a certain degree of results in fiscal 2022.

10,000to post sales of 2,200 units in fiscal 2024. In fiscal 2022 we achieved 1,861 units sold,

LEBEN YOKOHAMA YAMATE ONE WARD
COURT (total number of units: 228 units)

The first goal was to restructure the stable, nationwide supply system in which we aim

16,724surpassing the previous fiscal year by 31 units. The favorable progress made with con02022.32023.3

Net sales (left axis)

2024.32025.3(Forecast)(Forecast)0Gross profit (right axis)

tracts helped to control the amount of discounts. As a result, we achieved a high grossprofit margin of 22.0%.
Our second goal was to achieve a metropolitan area ratio of 50% in fiscal 2024. Having
attained a metropolitan area ratio of 48.8%, we have essentially achieved our goal of

LEBEN AOI HITOYADOCHO CROSS
COURT (total number of units: 82 units)

50%.

Co-Creation Efforts with Local Communities to Develop
Better Cities for the Future
Promoting a Strategy to Cope with Major Market Changes

The third goal was to promote active penetration in redevelopment projects such as the reconstruction of station-front condominiums or renewal of decrepit condominiums. We are working to expand urban redevelopment projects and quality building maintenance projects throughout Japan, starting with the redevelopment project in Toyama City, which received the first
approval of the Basic Plan for Revitalization of Central City Areas.

The Group’s new built-for-sale condominium business began to expand into regional cities in2014 with the opening of its Hokuriku and Tohoku offices, and by 2022 had grown its presence
nationwide, from Hokkaido to Okinawa Prefecture. Up until now, the Group’s strength has been

Yoshitaka Tejima
Takara Leben Co., Ltd.
Director, Senior Managing
Executive Officer,
General Manager ofCondominium Business
Headquarters, and Division
Manager of Special BuildingCountermeasures Office

Future Initiatives

in suburban areas where, despite there being a need, large companies did not provide support.

Performance results for fiscal 2023 are forecast to reach 2,200 delivered units, with expectations for increases to both sales

This largely reflects such cost management considerations as keeping the cost of land, whichand profit. Although the ideal ratio between metropolitan areas and regional cities is 50/50, the ratio of regional cities to metro-accounts for a large portion of the cost of the sales price, including construction and land costs,

politan areas is expected to increase to approximately 65/35, in part due to the lineup.

low, and providing reasonably priced and well-designed properties. However, in tandem withsurging construction costs, the costs for land have fallen to a comparatively smaller portion, anddisparities between regions have decreased. We expect that this will not be a transitory trend,but more likely a turning point, where the market shifts away from the deflation that has persisted
for more than 30 years.
In light of such changes in the business environment, in addition to our strategy to broaden
areas of support, we will focus on selecting properties in each region, particularly on value-added
development projects going forward. More specifically, we will promote strategies that look to
expand the ratio of metropolitan areas, including government-designated cities nationwide.

The progress made with contracts for new built-for-sale condominiums as of the start of the fiscal year was 1,423 units,compared with plans for 2,200 delivered units, with approximately 65% of contracts already completed. Sales have beenstrong, with 277 units under contract as of the beginning of the fiscal year for delivery in fiscal 2024. While the impact of rising
construction costs on sales prices is unavoidable, we believe that the challenge will be how to control construction costs andto balance the cost increases with sales prices.
To further expand our core business, in addition to our existing new built-for-sale condominium business, we will continue towork toward designing sustainable environments in local cities and regions, including redevelopment and rebuilding projects
that revitalize local communities. This initiative is gaining traction in various quarters, and consultations with local governments
are increasing. Without limiting the fields or businesses in which we can operate, we will make efforts to create new value with

Becoming a Future Environment Design Company, Starting with Condominiums

our customers and partners.

The Group’s strength lies in its integration of manufacturing, sales, and administration, and thequick and comprehensive development within the Group. For example, the sales team, being
engaged from the planning stage, swiftly reflects customer comments and needs into products.

Metropolitan Area Ratio

intend to increase local hiring to turn differences in regional characteristics within Japan intostrengths.
Moreover, we will also develop a wide range of peripheral real estate businesses within the Hokkaido area: 10.7%

Group through the Investment Development Business Headquarters. Based on our real estate Tohoku area: 25.4%

development capabilities, we will collaborate with other businesses, such as the Regional Kanto-Koshinetsu
area: 0.3%

revitalizing local economies in pursuit of the happiness anyone can attain through their homes.

 Hokuriku area: 2.6%
 Chugoku area: − Shikoku area: 3.1%
 Kyushu area: 9.1%

28

MIRARTH HOLDINGS Integrated Report 2023

area: 27.1%

area: 36.5%

mitted to improving efficiency and strengthening our sales force through DX. In addition, weStrategic Promotion Department, to comprehensively develop real estate across all regions, andTokyo metropolitan

Tokyo metropolitan

Given our belief that the center of gravity of these strengths is our human resources, we are com-48.8%

 Hokkaido area: 2.4%

FY2022

 Tohoku area: 19.1%

Chubu area: 4.4%
Kinki area: 7.9%

 Kanto-Koshinetsu
area: 14.1%

35.3%
FY2023(Forecast)

Chubu area: 6.1%
Kinki area: 2.1%

 Hokuriku area: 15.9%
 Chugoku area: − Shikoku area: 2.0%
 Kyushu area: 11.2%

MIRARTH HOLDINGS Integrated Report 2023

29

CONTENTS

Strategies by Business Segment

Introduction

MIRARTH’s Vision for the Future

Business Overview

Trends in Net Sales and Gross Profit

In its liquidation business, the MIRARTH HOLDINGS Group engages in thedevelopment of properties such as rental residences and offices as well as
their sale including entire buildings to real estate funds. In real estate sales,
the liquidation business follows the new built-for-sale condominium business as the second principal pillar. Roughly 70 to 80% of the properties
developed in this business are sold to Takara Leben Real Estate
Investment Corporation. As such, the Group plays an important role insupporting the growth of the investment corporation.

(Millions of yen)

(Millions of yen)

40,0008,000

30,63130,60030,00030,000
5,191
6,707
5,500
5,410
25,87020,00010,0002022.32023.3

Net sales (left axis)

Investments amounted to 24,464 million yen, a decrease of 19.0% compared with the previous fiscal year and short of the 30.0 billion yen target.
This is due to having carefully selected purchases, partly because of intensifying competition with other companies, and also because the share of
new development has increased compared to existing real estate. New
development projects contribute to higher profit margins relative to revenue
targets as they provide more added value than sales and purchases ofexisting properties.
On the other hand, both net sales and gross profit increased, and thegross profit margin rose compared with the previous fiscal year as well as
the performance target. In addition to the promising market maintaining its
progress, new developments and other projects contributed greatly to
profit margins. In terms of the breakdown of investments, residential properties accounted for more than 60% of the total investments, and similarly
for the breakdown of sales, residential properties accounted for more thanhalf of the total at 67%.

6,000

4,000

2,000

0

Review of FY2022

2024.32025.3(Forecast)(Forecast)

0

6%

Residences:

Retail and logistics:

7%

Offices:

24,46424%

63%

million yen

FY2022

Land, etc.:

28,141

Residences:

Retail and logistics:

14%
Offices:

30,631

15%

67%

million yen

FY2022After March 31, 2026

35,778Residences

30

Offices

HotelsMIRARTH HOLDINGS Integrated Report 2023

Retail and logistics

57,723 million yen

3,658

9,966
21,970(Millions of yen)

3,000

14,89012,0008,621

10,041
1,270 1,328

1,900
1,530

6,000

2,000

1,000

0

2022.32023.32024.32025.3(Forecast)(Forecast)0Gross profit (right axis)

Due to strong demand for detached houses, sales progressed steadily, resulting in 189 units sold in
fiscal 2022, an increase of nine units compared with the previous fiscal year, and both net sales andgross profit increased year on year. However, the gross profit margin declined to 13.2%, down 1.5
percentage points compared with the previous fiscal year, in which we conducted highly profitablelarge-scale projects. The number of units sold has also fallen short of the original plan by about 30
units compared with the plan for 220 units sold. With this in mind, an issue for the Company going
forward will be to make efforts to strengthen its sales force.

LEBEN PLATZ MIZUE V

Future Initiatives

4%(Millions of yen)

21,97017,29018,000

Sales Results

Assumed Asset Value after Completion

22,127(Millions of yen)

Review of FY2022

Investment AmountLand, etc.:

The MIRARTH HOLDINGS Group engages in the development, planning,and sale of detached houses under the LEBEN PLATZ brand name.
Leveraging the condominium planning and development capabilities that it
has cultivated over many years, the Group will continue to generate businesssynergies by engaging in business activities involving ready-built houses inthe same residential real estate field. The new detached house business isspearheaded by the subsidiary Leben Home Build Co., Ltd., which focuseson constructing high-quality, comfortable spaces with an emphasis on light,
water, and air, a unique feature of the houses built by the Company.

Net sales (left axis)

As of March 31, 2023, the Company held 38,868 million yen in completed assets, and the 18,855 million yen book value of assets
under development will reach 40,792 million yen upon completion in the future, which together will bring the Company’s holdings to
79,660 million yen after March 31, 2026. More than 70% of the portfolio comprises residential and office properties, which is theideal portfolio composition.
For fiscal 2023, we anticipate net sales to remain essentially unchanged from the previous fiscal year, with a gross profit margin of
18.0%. We will continue to accelerate the development of new residential properties, which is one of our strengths, while carefully
selecting investments and continuing our policy of selling them to Takara Leben Real Estate Investment Corporation and other investors. By promoting development and disposition schemes that take advantage of Group synergies in this way, we will seek mutual
growth with the asset management business.

35,778

Data

Trends in Net Sales and Gross Profit

Gross profit (right axis)

Future Initiatives

March 31, 2025

Governance Supporting Value Creation

New detached house

Business Overview

March 31, 2024

The Future as Created Together with Our Stakeholders

Real Estate Business

Liquidation

March 31, 2023

Strategies for Creating the Future for People and Our Planet

9,966
24,094
29,11563,737 million yen

3,658
9,966

4,800
9,966

74,640 million yen

4,800 79,660 million yen

The sales target is 240 units, a planned increase of 51 units compared with fiscal 2022. Both net sales and gross profit are expected
to increase, however, the gross profit margin for the fiscal year ending March 31, 2024 is anticipated to come in at 10.3%, down 2.9
percentage points from fiscal 2022 due to the impact of increased costs associated with procurement and other factors. Since theprofit margin tends to be structurally low, we aim to improve the profit margin by reducing costs, including SG&A expenses. Goingforward, our basic policy is to play a complementary role to the new built-for-sale condominium business as a short-term return business, and we will rebuild our procurement and supply system by strengthening area marketing, while ensuring the establishment of ashort-term return cycle.

Renewal resale

Business Overview
Led by Group company Leben Zestock Co., Ltd., the MIRARTHHOLDINGS Group primarily engages in the purchase and resale of preowned condominiums under lease. In order to capitalize on the demandfor pre-owned condominiums in areas with high land value, which havebeen rapidly increasing in recent years, we are aggressively purchasing
pre-owned condominiums under lease, undertaking renovations after tenants vacate, and actively promoting resale, maximizing use of the realestate network within the MIRARTH HOLDINGS Group.

Review of FY2022

Trends in Net Sales and Gross Profit(Millions of yen)

(Millions of yen)

12,0008,000

10,660

1,082
990
5,748
6,159

1,600

1,260
8,900

4,000

0

1,800

1,200

600

2022.32023.3

Net sales (left axis)

2024.32025.3(Forecast)(Forecast)0Gross profit (right axis)

In the fiscal year ended March 31, 2023, both sales and purchases of units progressed steadily, with
179 units sold, up eight units compared with the previous fiscal year, and 274 units purchased, up
25 units year on year. As far as new built-for-sale condominiums are concerned, the used market istrending toward vitalization, and accordingly, profit margins have exceeded projections.

Future Initiatives

Pre-owned condominium after renovation

The number of units held in stock is steadily increasing, and the number of units sold is also trending upward. Aiming to establish astable renewal business cycle, the Group will continue to secure appropriate inventories while leveraging the Group network.

MIRARTH HOLDINGS Integrated Report 2023

31

CONTENTS

Strategies by Business Segment

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

Real Estate Business

Real estate rental

Real estate other

Business Overview

Trends in Net Sales and Gross Profit

As a lender, the MIRARTH HOLDINGS Group engages in the rental of(Millions of yen)

(Millions of yen)

8,000

3,000

real estate including condominiums and offices. We work to securestable income by actively acquiring rental properties nationwide. The
subsidiary Leben Trust Co., Ltd. plays a leading role in securing rental
property tenants.

5,950

6,000

6,000

5,819

1,488

4,000

6,300

1,255

2,000

1,700

1,460

1,000

Real estate rental income generated while temporarily holding properties acquired and developed in the liquidation and renewal resale

2,000

Trends in Net Sales and Gross Profit

Through its real estate other business, the MIRARTH HOLDINGS(Millions of yen)Group acts as an intermediary in the purchase and sale of properties
between customers. Leveraging wide-ranging resources such as theproperties for sale supplied by MIRARTH HOLDINGS Group, managed
properties, and rental properties, we are strengthening the real estate

3,000

2,300
2,000

1,539
1,097

1,000

1,070

distribution business.

02022.3businesses until they are sold is also included in real estate rental
revenues.

Business Overview

2023.3

Net sales (left axis)

2024.32025.3(Forecast)(Forecast)00Review of FY2022

Gross profit (right axis)

Net sales amounted to 1,539 million yen, up 40.3% compared with the2022.3

Net sales

1,900
1,370

1,690

1,229

2023.32024.32025.3(Forecast)(Forecast)Gross profit

previous fiscal year, and gross profit was 1,229 million yen, up 14.9%

Review of FY2022

year on year.

Net sales amounted to 5,819 million yen, down 2.2% year on year, and gross profit was 1,255

Future Initiatives

million yen, down 15.6% year on year. Although there were year-on-year decreases to bothsales and profit, they were generally on par with the previous fiscal year. Among the properties

Utilizing internal Group resources, we will leverage synergies among each Group company, and plan for increases in both

we handle in the liquidation business and the renewal resale business, because there is also

sales and profit for the fiscal year ending March 31, 2024.

rental income generated from the property before it is sold, these two businesses do exert an
impact on this business. A decrease in the number of properties purchased and completed in
the liquidation business led to a decrease in rental income.

Development of the Overseas Business

LUXENA TOYOCHO

As part of our efforts to spur further growth of core businesses, which is an element of our Medium-Term Management

Future Initiatives
Real estate rental generates stable revenue as a stock and fee business. We will continue our endeavors to build a portfolio
centered on residential and office properties.

Plan, the Group is endeavoring to build its overseas business. To realize happiness throughout our planet, our purpose
moving forward, we will work to discover new businesses, including in the real estate business, and to grow our business in overseas markets.

Vietnam

Real estate management

THE MINATO RESIDENCE is a large-scale condominium complex developed by an all-Japanese consortium in the port city of Hai Phong, Vietnam’s third most populous city. In March
2023, Takara Leben began selling units in its second building, the north tower. The Group will

Business Overview

Trends in Net Sales and Gross Profit

In addition to the management of new built-for-sale condominium of(Millions of yen)

(Millions of yen)

12,0003,000

the MIRARTH HOLDINGS Group, Group company Leben Community
Co., Ltd. actively manages properties handled by other companies.

9,600

10,080
2,240

9,400
8,809
8,084
1,940
1,799
1,719

7,200

number of managed units. In our real estate management business,

4,800

1,200

we also manage rental properties on behalf of property owners.

2,400

600

Review of FY2022
Net sales increased 9.0% compared with the previous fiscal year, while2022.3

Net sales (left axis)

2023.3

continue to contribute to urban development in Vietnam by meeting the housing needs of

Hai Phong, which is expected to develop significantly as an international port city.

2,400

Through these activities, Leben Community is steadily expanding the0

THE MINATO RESIDENCE Project

1,800

2024.32025.3(Forecast)(Forecast)

THE MINATO RESIDENCE

Thailand0Gross profit (right axis)

gross profit declined 4.4%. While the number of managed properties
increased year on year, to 72,603, this was short of the target of
73,800.

ATMOZ BANGNA, Kave Seed Kaset, andAtmoz Flow Minburi Condominium Projects

From January 2022, Takara Leben has been participating in the ATMOZ BANGNA
condominium project in Bangkok, Thailand, in collaboration with the local developer AssetWise Public Company Limited. Including this project, three condominium projects are underway, namely with the participation in Kave Seed Kaset
in November 2022 and Atmoz Flow Minburi in March 2023. The housing market

Kave Seed Kaset

in the Bangkok metropolitan area of Thailand is experiencing stable growth in linewith a rising population and incomes, and demand for housing is expected toFuture Initiatives
Rising labor costs and other factors caused profit margins to trend slightly lower, and as administrative costs continue toclimb, we are working to improve profitability. In addition, we will further increase the number of properties under management, capture business derived from management activities, and aim to expand profit-earning opportunities.

32

MIRARTH HOLDINGS Integrated Report 2023

continue to increase. We will continue to strengthen our partnership with

AssetWise, bolstering our ability to supply high-quality housing in Bangkok,
Thailand.
Atmoz Flow Minburi

MIRARTH HOLDINGS Integrated Report 2023

33

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

Strategies by Business Segment

The Group’s Strengths and Business Model Strategy for the Energy Business

Energy BusinessTo date, the business model in the energy business has been

Business Overview

Trends in Net Sales and Gross Profit(Millions of yen)

The MIRARTH HOLDINGS Group carries out its power generation

35,000business based on the use of renewable energy, with Leben Clean

28,000

Energy Co., Ltd. (LCE) playing a central role. Being actively(Millions of yen)

34,248
4,520

5,396

4,730

21,000engaged in the acquisition and development of solar power plants
on idle land and other places throughout Japan, we are involved in

14,000operations at over 250 power generation plants around the coun-

7,000

try. Moreover, we aim to stabilize power supplies, and to promote0development of renewable energy facilities other than solar power

13,7902022.3826

2023.3

Net sales (left axis)

generation, such as wind power generation and biomass power

12,7002024.3(Forecast)

2025.3facilities to TIF. On the other hand, since the inclusion of this6,000

investment fund in the Company’s scope of consolidation as a

4,800

subsidiary through a TOB in November 2022, the Company has

3,600

9,045

Business Model Diagram

mainly based on flow revenues from the sale of power generation

basically shifted its revenue structure from a flow revenue to a
stock revenue-generating entity by focusing on revenue gained

2,400from the sale of electric power and the operation of the facilities,

1,200

rather than selling the power generation facilities themselves.

0(Forecast)Gross profit (right axis)

One of the strengths of our business lies in its power generation
capacity. The scale of solar power generation facilities is divided
into three categories according to system capacity: low voltage,

generation. In 2022, Takara Leben Infrastructure Fund, Inc., whichhigh voltage, and special high voltage. Low voltage is for small-

had until then been a purchaser of power generation facilities, was included in the Company’s scope of consolidation as ascale power generation such as residential solar panels, special

subsidiary. Moving forward, we are working to build a new business model.

high voltage is for so-called mega-solar projects of 2,000 kW orConsistent and speedy development from purchasing
to O&M and stable management capabilities basedon accumulated know-how

Flows
Purchase

Develop

O&M(operation and management)

Strengths
Strong ties withlocal communities

Speedy and differentiated development
capabilities

Long-standingknow-howFinancemore, and high voltage is somewhere in between. Low voltage
and special high voltage are often fields that compete with one

Aiming for Sustainable Growth by Focusing On the Non-FIT Businessand economies of scale with the latter. The high-voltage field,

Realizing a second pillar of growth

Kentaro Taniguchi
President and Representative
Director
Leben Clean Energy Co., Ltd.

another, given the low capital investment hurdles of the former,

In order to achieve what will become a second pillar of sustainable business growth, and since assuming the office of representative director at LCE in June 2022, I have been working to bring about organizational transformation and to create a new business model.
In terms of transforming the organization, we have led the Group in improving productivity throughDX, and this fiscal year 100% of our offices have the flexibility of free addressing, and have also
become paperless. At the same time, we tackled business visualization issues by adopting a systemthat allows users to view business progress and profitability in real time using a cloud-based app ortheir smartphones. In the future, we intend to share and develop with the Group such DX initiatives,and enhance efficiencies across the Group.

however, has steep barriers to entry and a limited number ofP rocure funds through synergies with asset
management businessB uild relations with collaboration and off-takers withexternal partners

players due to the difficulties in obtaining economies of scale andburdensome issues of land acquisition and capital investment.
The Group’s 2021 acquisition of LCE, which boasts capabilities in small- and medium-scale solar power plants, has
empowered the Group in the high-voltage area, which is the scale of power generation capacity suitable for the PPAs thatwill be a focus in the future. In terms of costs, the Group will be able to swiftly realize development by leveraging its networkand expertise in acquiring and purchasing land cultivated in its real estate business, and will be able to significantly lower
procurement costs by undertaking multiple projects simultaneously. In addition, in the electricity sales business, we securerevenue through alliances with partner companies that are power consumers and off-takers.
As many companies and municipalities are stepping up their efforts to decarbonize and shift to a low-carbon society, we

Promoting a new business modelThis business is at a major turning point regarding its business model. I have long professed that I wantto spread happiness to those around me, and have done my best to that end. The purpose of the
MIRARTH HOLDINGS Group is “to design sustainable environments for a happier future for both people and our planet.” In fulfilling this purpose, we believe that it will be necessary to have people who candesign and arrange business. Moving forward, we will strive to acquire and train such human talent,and in collaboration with our partners, we will explore new business possibilities, such as renewableenergy fuels, both in and outside of Japan, with the aim of creating a new business ecosystemthroughout the entire value chain.

believe that this business can be a powerful pillar to support our mainstay real estate business. We aim to achieve sustainablegrowth through stable earnings by building a business model that does not depend on the FIT scheme, and to grow to a level
where the real estate business and energy business account for 1:1 of EBITDA by fiscal 2029.

Review of FY2022 and Progress of the Medium-Term Management Plan
In fiscal 2022, sales from facilities sales operations were zero due to the decision to forego the initially planned sale of power

Growth Roadmap in Energy Business
Period for forming
foundation

Period for strengthening businessmodel and financial structure

generation facilities as a result of the TOB for TIF, and its inclusion in the Company’s scope of consolidation as a subsidiary.
VisionPeriod for realizing
high growthother hand, regarding revenue gained from the sale of electric power, net sales reached a record high of 9.0 billion yen, and
l)

Under
verification

 E xpand into global markets and import business models from overseas Verify renewable energy fuel businesseRealizing energy business as the second main
mod
ess
usin
Securing stable  E stablish a stable power supply system by securing stable power sourcesbbusiness after real estate businessIT ) power supply other than solar power(n e wies (F
ess
nolog
usin
h
b
c
Focus on non-FIT businesses
y
te
ther
nerg

o
e
, and
ble
ewa
ma s sRen ower, bio
ind pec tricity
lop w
and sale el el
D e vewer plants
modDevelop po non- FI T businessgutilizin

Develop power plants and sale electricity utilizing FIT system
and O&M business (including other than FIT)
Current

Medium termLong term

The Company also posted an operating loss of 956 million yen due to initial costs incurred in connection with the TOB. On the Realize sustainable growth by securing stable customers through PPA andSolving social forming tie-ups with off-takers as a partner company
issues H elp achieve carbon neutrality

 S ecure stable earnings and expand O&M based on FIT system
Securing stable S trengthen financial foundation
earnings
 Reuse FIT-based power plants as non-FIT power plants after completion of FIT

gross profit increased 37.7% from the previous fiscal year. In addition, the Fujisan Asagiri Biomass Power Plant has commenced generating electricity, and we are also starting to produce results from renewable energy projects other than fromsolar power generation.
The Company has already achieved its goal for cumulative power generation capacity of 360 MW set under its MediumTerm Management Plan, and has established a target of expanding the operating income composition ratio of the energy business to 25% in fiscal 2026, and to 30% in fiscal 2029. This fiscal year is a major turning point for achieving that goal. Goingforward, in addition to building out businesses that do not rely on the FIT scheme, we intend to broadly realize regional revitalization and contribute to society through the stable supply of energy, and we will make further efforts to develop renewableenergy facilities beyond solar power and to expand the PPA model.

34

MIRARTH HOLDINGS Integrated Report 2023

MIRARTH HOLDINGS Integrated Report 2023

35

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

Strategies by Business Segment

Review of FY2022 and Progress of the Medium-Term Management Plan

Asset Management BusinessBusiness Overview

Trends in Net Sales and Gross Profit

Due to the change in business segments which took place in fiscal
2022, the management compensation portion of the other business segment was separated as a stand-alone business andrenamed the asset management business. Utilizing the Group’s
wealth of expertise, knowledge, and networks in real estate andrenewable energy, the MIRARTH HOLDINGS Group works
through its asset management company to manage J-REITs,
private placement, and other funds.

(Billions of yen)

1,096
1,223
963

800

820

810

ratio for this business in fiscal 2022 was 4.6%.

2022.32023.32024.3(Forecast)

2025.3(Forecast)Gross profit

Since its establishment, the Company has focused on the significant role that renewable energy projects play in Japan’s energy policy, and has managed the assets of Japan’s first listed infrastructure
investment corporation. In addition to a real estate asset management department, we are engaging inefforts to expand the asset management business that establishes and manages funds that encompass such real estate as infrastructure assets, including as solar power plants, as well as office buildings, retail properties, and rental housing. One of our strengths is the ability to provide high-quality
asset management services, including management and operations, as a group working in unison, andto secure future profit-earning opportunities for the Group as a whole. We have identified the vision of“cultivating new financial asset opportunities” and are pursuing the potential of renewable energy andreal estate.
We have been managing listed investment corporations for six and a half years and have acquired ahigh level of asset management experience. Based on this experience, we will strive to maximize thevalue of the assets under management and sincerely and faithfully conduct asset management operations to become the third pillar of the MIRARTH HOLDINGS Group.

Tetsuo Saida
President and Representative
Director
Takara PAG Real Estate
Advisory Limited Ltd.

We primarily manage Takara Leben Real Estate Investment Corporation, a publicly traded REIT. In contrast to real estate with low liquidity, the amount and number of acquisitions of securitized real estate
by REITs and other real estate funds are increasing due to the peace of mind they offer when making
trades through the listed market. While major real estate companies may have conflicts of interest with
REITs because they own buildings, the MIRARTH HOLDINGS Group does not own its own buildings
and is able to concentrate on investment management, which is where we excel. Since becoming amember of the MIRARTH HOLDINGS Group in 2018, the company has been shifting toward residential
projects and diversifying its tenants and properties to mitigate the impact of major disasters and otherevents.
On the other hand, our REIT has yet to rival the major players in terms of history and asset size, andthe percentage of institutional investors is low. We intend to expand the scale of our assets to increaseliquidity, which in turn will lead to stable and continuous revenues, mainly from the rental business generated by the REIT.

131.6

managed by the MIRARTH HOLDINGS Group. Our goal is toasset scale was approximately 250 billion yen on an acquisition

23.0

8.3

100.0

77.9

March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2017
2018
2019
2020
2021
2022
2023 2025（Target）

price basis as of the end of March 31, 2023.

Renewable energy

REIT

Private funds

Future Strategy
For fiscal 2023, we project net sales to decrease by 25.2%, to 820 million yen, and operating income to decline 96.9%, to 10
million yen. We plan to offset management fees on a consolidated basis by making Green Energy LLC a consolidated
subsidiary.
Since the type of expertise required in the asset management business differs from that of the Group companies, we willdevelop and strengthen human resources capable of providing services that satisfy investors, while also utilizing outside
personnel.

Other Businesses
Business Overview

By Expanding the Scale of Our Assets, We Aim to Be a Real Estate
Investment Trust that Remains the Preferred Choice of Investors.

150.0

98.0

with increases in assets under management of the various funds

funds by March 31, 2025. As a result of steady accumulation, theAiming to Maximize the Value of Infrastructure Assets and Real
Estate, the Group Works as One to Provide High-Quality Services.

39.8

161.9

148.6

fiscal 2029. The earnings structure of this business will grow in line

achieve an asset scale of 300 billion yen from each of our various

President and Representative
Director
Takara Asset Management
Co., Ltd.

209.9

In its Medium-Term Management Plan, the Company has set theasset management business to 9% in fiscal 2026, and to 15% in

50.0

249.4

34%

target of expanding the operating income composition ratio of the

400

300.0

37%

6%

Residences
Offices
HotelsRetail andother properties

fees due to the TOB for TIF. The operating income composition

1,070
610

Net sales

Mamoru Takahashi

23%

These declines were attributable to the loss of planned acquisition

1,315

1,200

0

Assets under Managementcompared to the previous fiscal year, to 1,096 million yen, while
operating income fell 45.7% year on year, to 322 million yen.

(Millions of yen)

1,600

Net sales in the asset management business declined 16.6%

The MIRARTH HOLDINGS Group is actively engaged in a wide
range of business activities related to people’s housing needs,
which continue to evolve in a myriad of ways. The other businesses segment includes the construction subcontracting business carried out by Leben Home Build Co., Ltd., the rehabilitation
services business handled by Leben Community Co., Ltd., and the
direct management of hotels by Leben Hotels Co., Ltd.

Trends in Net Sales and Gross Profit(Millions of yen)

10,000

8,550

9,260

7,500

630

5,000

2,895
2,500

500

4,219

92

0

2022.3
Net sales (left axis)(Millions of yen)

1,000

750

500

250

△35
2023.302024.3(Forecast)

2025.3(Forecast)Gross profit (right axis)

Review of FY2022 and Future Strategy
In fiscal 2022, net sales from the other businesses segment were up 45.7% from the previous fiscal year, amounting to 4,219
million yen, mainly owing to contracts for construction work and hotel management. Net sales for fiscal 2023 are projected toincrease due to a steady accumulation of construction orders in the construction business. In addition, the Company plans forhotel management to pivot to profitability from fiscal 2023, and projects operating income to turn positive. In the future, the
MIRARTH HOLDINGS Group will work to definitively capture earnings opportunities derived from other segments and expand
peripheral businesses while strengthening synergies across the Group.

36

MIRARTH HOLDINGS Integrated Report 2023

MIRARTH HOLDINGS Integrated Report 2023

37

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

Sustainability in the MIRARTH HOLDINGS GroupThe Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

Please see the following site for details of our sustainability activities

https://mirarth.co.jp/en/sustainability/

Relationships with Stakeholders

Sustainability Basic Policy
Customers

The MIRARTH HOLDINGS Group holds as its purpose: “Todesign sustainable environment for a happier future for

Shareholders andinvestors

Competitors

In line with our overarching purpose “to design sustainable environments for a happier future for both people andour planet,” we believe it important to engage in dialogue with our stakeholders and to co-create value.

both people and our planet.” Contributing to solving social
Main Stakeholders

issues and achieving the SDGs by engaging in sustainability activities through its businesses, such as the supply ofLocal communities,
NPOs, and NGOs

Media

housing and the introduction of natural energy, the Groupaims to gain the trust of its various stakeholders and society and achieve lasting development.

Executives andemployees

Governments

C ontracting parties and tenants ofcondominiums and detached houses
U sers of tenant buildings
U sers and others of various services
P.50

Definition

Sustainability Promotion SystemL ocal communities, residents, local governments, etc. related to MIRARTH HOLDINGSGroup business

The Group has established a sustainability promotion sys-

Trading partners

tem based on the recognition that “addressing issues sur-Definition

Board of Directors

rounding sustainability, including consideration of climate

Reportchange and other global environmental issues, respect forC onstruction contractors
B usiness operators and others related tothe provision of various services

Supervision

Sustainability Committee
Matters related to the revision or abolition of sustainability-related policies and material issues (materiality)
Determination and promotion of measures, review of progress, and deliberation of improvement plans

working environment and fair and appropriate treatment of
employees, fair and appropriate transactions with business
partners, and risk management in the event of natural
disasters are important management issues.”

Members

 Chair: Representative Director and President (Chief Executive Officer)
 Vice Chair: Director in charge of Sustainability (Executive Officer)
 Permanent members: Directors

Secretariat

Group Corporate Planning Department

M
 IRARTH HOLDINGS employees and theirfamilies

Definition

Sustainability Promotion Section,
Group Corporate Planning Department

Coordination andimplementation

Each department and Group company

dents and division heads of Group companies, is responsi-

Direction formulation, policy formulation,
policy implementation and awarenessraising, promotion management

Communication

Policy implementation, awareness-raising,progress management

ble for promoting ESG strategies, determining policies andInformation disclosure

measures concerning sustainability, examining and prodeliberating on improvement plans.

P.44-47

Shareholders and investors

Representative Director and composed of directors, presi-

moting key issues (materialities), reviewing progress, andEmployees
Definition

Other presidents and department heads of the Company and Group companies appointed by the chairperson

The Sustainability Committee, chaired by the Individual and institutional investors

Major Responses of the Group• Supply of valuable products and services• Improvement of customer satisfaction in all areas,
including quality and cost
• Supply of environmentally friendly products• Provision of accurate and appropriate information
concerning products and services• Provision of properties with ZEH-M Oriented certification• Administration of sales staff questionnaire• Publication of “Smilax” quarterly• Operation of online customer service• Prevention of accidents and disasters• Collaboration and coordination in solving social issues• Securing of employment• Participation in social contribution activities• Participation in and sponsorship of local events• Holding of community events at managed properties• Implementation of social contribution activities• Regional revitalization through rebuilding and redevelopment
business• Fair and even-handed transactions• Information sharing and collaboration with the aim of
ensuring customer satisfaction and CSR procurement• Fair and even-handed transactions• Collaboration and coordination in operations• Creation of prosperous lives for employees and theirfamilies• Human resource utilization and development• Appropriate evaluation and compensation• Respect for human rights, personality, and individuality• Creation of workplaces in which diverse personnel can
thrive• Attention to occupational health and safety• Implementation of training programs• Implementation of human resource and evaluation interviews• Operation of helpline desks• Introduction of a Telework System• Promotion of staggered commuting times and reduced workinghours• Establishment of a Health Committee• Maintenance and improvement of corporate value• Securing of stable profits and appropriate return ofprofits• Enhancement of corporate governance system• Creation of risk management systems• Appropriate disclosure of corporate information at
appropriate time

• Holding general meetings of shareholders, company-introductory
sessions and financial results briefings• Conducting individual meetings with domestic and overseas
institutional investors• Conducting shareholder surveys• Disclosing IR information on the website• Obtaining external certification

Communication

Stakeholders
Customers

Local communities

Business partners

Employees

Shareholders andinvestors

Support for External Certifications and Initiatives
MIRARTH HOLDINGS Signs UN Global Compact

awarded a 3-star rating in the GRESB Rating, a 5-level

Key Themes and Key Issues Identification Process

In 2020, MIRARTH HOLDINGS signed the United Nations

rating system based on global relative rankings.

The Group has identified key themes and key issues (see page 18) through the following steps.

participating company. We will continue our efforts to

Corporation received a 4-star rating (the highest being

achieve the Ten Principles of the UN

5-star) in the GRESB Rating and was selected as an Asia

Global Compact in four areas:

Sector Leader.

We identified 31 issues relating to the business environment based on GRI, SDGs,
SASB, and other international guidelines, as well as our Group philosophy andMedium-Term Management Plan and requests from our customers, shareholders
and investors, local communities, employees, and other stakeholders.

STEP

2 Evaluate the significance from the MIRARTH HOLDINGS Group’s
perspective

We set priorities by sorting out the results of questionnaires completed by all employees, including the management and officers, and each issue’s relation with our business and Group philosophy.
STEP

Global Compact* promoted by the UN and registered as a

1 Grasp and organize social issues

3 Evaluate the importance of our stakeholders’ perspectives

human rights, labor, environment,
Priorities for stakeholders

STEP

and anti-corruption.

High* The United Nations Global Compact was proposedby then UN Secretary-General Kofi Annan in 1999 at
the World Economic Forum in Davos and waslaunched in 2000.

Received High Evaluation from GRESBMIRARTH HOLDINGS participated in the fiscal 2022

We set priorities by sorting out the results of questionnaires completed by customers, shareholders and investors, and business partners and the requirements basedon international guidelines such as the GRI and the SDGs.

STEP

STEP

GRESB* Infrastructure Asset Evaluation for the fourthconsecutive year. Takara Leben Infrastructure Investment

4 Identify key issues

The key issues were identified after the priorities were reconsidered from the perspectives of the MIRARTH HOLDINGS Group and our stakeholders, and reviewed
by the management.

5 Policy setting for key themes

Policies were set for the four key themes.

38

Customers (corporations and individuals) P.48-49
Definition

Local communities

Trading partners

human rights, consideration of employee health and the

Expectations and Requests

MIRARTH HOLDINGS Integrated Report 2023

Corporation’s solar power generation facilities and theHigh
Priorities for the MIRARTH HOLDINGS Group

Company’s policies and performance in addressing ESG
issues were evaluated, and as a result, the Company

Furthermore, Takara Leben Infrastructure Investment

In addition, Takara Leben REIT received a Green Star
rating in the fiscal 2022 GRESB Real Estate Assessment
for the fourth consecutive year, which indicates that thecompany received high marks for both management
and performance with respect to ESG.
* The name of an annual benchmark assessment to measure theESG considerations of companies
and funds that own and manage
real assets (real estate and infrastructure) and the organizationthat administers the assessment,
created in 2009 by a group ofmajor European pension funds
that spearheaded the Principles
for Responsible Investment (PRI).

received a higher overall score than last year and was

MIRARTH HOLDINGS Integrated Report 2023

39

CONTENTS

principles set forth by the Principles for Financial Action forthe 21st Century to help create a sustainable society.

Takara PAG Real Estate Advisory Limited endorses theParticipation in the Japan Climate Initiative (JCI)

Sustainable Society (the Principles for Financial Action for

In March 2022, Takara PAG Real Estate Advisory Limited

the 21st Century) and signed on to them in March 2022.

Management joined the Japan Climate Initiative (JCI) to

The Principles for Financial Action for the 21st Century wereendorse its declaration, “Japan’s participation at the fore-

formulated in October 2011 by the Japanese Environmental

front of the global effort to decarbonize.” The JCI was

Financial Action Principles Drafting Committee, a broad

established in July 2018 as a network of Japanese compa-• Responses to global warming

range of financial institutions, based on the recommenda-

nies, local governments, organizations, and NGOs that are• Initiatives for renewable energy

tions of the Central Environmental Council of the Ministry ofactively working to combat climate change to achieve the• Effective use of resources

the Environment, as action guidelines for financial institutions

decarbonized society envisioned by the Paris Agreement.

to fulfill their responsibilities and roles

The company is committed tonecessary for the creation of a sustain-

working with JCI’s stakeholders

able society. The company aims to

to strengthen the efforts toimplement initiatives based on the sevenachieve a decarbonized society.

intention to contribute to the achievement of its sustainabil-

MIRARTH HOLDINGS has conducted fund raising throughity strategy through its business activities, concluded a sus-

the syndication-style Green Loan provided by Sumitomo

tainability-linked loan (SLL) financing agreement with Towa

Mitsui Trust Bank. In addition, a JCR Green Loan Evaluation

Bank, and raised funds. SLLs are designed to promote

by Japan Credit Rating Agency, Ltd. awarded us with its

environmentally and socially sustainable economic activities

highest Green1 rating for this transaction. The funds raisedand economic growth by setting Sustainability Performancethrough this Green Loan have been allocated to the acquisi-

Targets (SPTs)* and linking loan terms to the achievementtion of the Leben Solar Iwate Hachimantai Powerof SPTs, thereby motivating the achievement of the targets.

Generation Facility (Hachimantai City, Iwate Prefecture).

The funds raised by the company will be used to financeprojects related to renewable energy development, etc.

Leben Clean Energy obtained a second opinion from*S
 PTs (Sustainable Performance Targets): Ambitious targets that allow businesses tomeasure their level of achievement with respect to the SDGs.

Rating and Investment Information, Inc. (R&I) to express its

Promoting the Creation of a System to Accelerate Group-wide Sustainability Initiatives

Masashi Yamamoto
Director in charge of
SustainabilityGroup CFO and Managing
Executive Officer

MIRARTH HOLDINGS Integrated Report 2023

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

Key Issues• Providing buildings and spaces thatconsider the environment and culture

KPIs• Establishment of environmental policy• Acquisition and disclosure of CO2
emissions• Setting CO2 emissions reduction targets• Percentage of houses certified for energy
efficiency rating (Flat 35): 100% of
detached houses• Acquisition of ZEH condominium
certification: 1• Acquisition of CASBEE certification:
1 with A-rank or higher• Newly added generation capacity ofmega-solar power plant: 20MW
• Total power generation capacity: 360MW

Environmental Policy
Thinking more positively about the future happiness ofpeople and our planet than anyone else, the Group has
established an environmental policy to work to create asustainable, Earth-friendly environment. Formulating
policies from the perspectives of our businessactivities, environmental protection, management andother factors, we give due consideration to theenvironment on a Group-wide basis.

Environmental Policy (excerpt)
1. Providing environmentally friendly
buildings and spaces

4. P romotion of resource recycling

2. Addressing climate change

5. C ompliance with environmental laws andregulations and environmental education

3. Maintenance and conservation of
biodiversity

6. E stablishment of environmental
management

Environmental Policy

Green Loan

Sustainability-Linked Loan

Strategies for Creating the Future for People and Our Planet

Having set a target of net zero CO2 emissions by 2050, the MIRARTH HOLDINGS Group is strengthening its efforts
toward that achievement. By providing products and services that help its customers reduce their CO2 emissions
while promoting its own efforts to reduce emissions, the Group contributes to the realization of a sustainable
society.

concept of the Principles for Financial Action Toward a

Sustainability Finance40

MIRARTH’s Vision for the Future

Contributing to the Reduction of Environmental Impact

Sustainability in the MIRARTH HOLDINGS Group

Signing the Principles for Financial Action
for the 21st Century

Introduction

In recent years, the world has been faced with major challenges that must be addressedby the world as a whole, including environmental issues such as climate change, theimpact of new coronavirus infections, and rising conflicts and tensions in the international
community. We therefore feel that the importance of sustainability initiatives being taken bycompanies is increasing year by year. Our Group has been promoting sustainability initiatives not only by contributing to urban development and community building through the
supply and management of housing, but also by developing businesses in the clean
energy field, including the development and operation of renewable energy power plants.
In addition to deciding on various sustainability-related policies and measures and setting
targets for reducing greenhouse gas (GHG) emissions, the Sustainability Committee discusses the various social issues surrounding the Group. Going forward, in conjunction with
the implementation of a raft of measures to reduce GHG emissions, we plan to re-identify
key issues (materialities) linked to management strategies and review KPIs in line with theHoldings structure. We will accelerate our Company-wide, cross-sectional sustainability
efforts in our Group’s business activities.

https://mirarth.co.jp/en/sustainability/environment/policy/

Endorsement of TCFD Recommendations
In June 2022, the MIRARTH HOLDINGS Group expressed its endorsement of the TCFD (Task Force on Climaterelated Financial Disclosure) recommendations and joined the TCFD Consortium. Going forward, we will strive tofoster relationships of trust with our stakeholders and contribute to the realization of a sustainable society by
expanding and upgrading our disclosure of information on climate change in line with the TCFD recommendations.
Governanceassessing climate-related risks and opportunities, we aim

The Chief Executive Officer for climate-related issues is theto do so systematically and objectively, utilizing scientificRepresentative Director, and the President Executive Officer isand academic knowledge.

the Director in charge of sustainability. Discussing matters

As part of our efforts to reduce CO2 emissions, we

relating to climate change response, including the identifica-

entered the energy business in 2013 and have developed ation and assessment of climate change impacts, the manage-

number of mega solar power plants across Japan, promot-

ment of risks and opportunities, progress of adaptation anding solar power generation and other renewable energy

mitigation efforts, and the establishment of indicators andprojects. Through the development and operation of solar

targets at Sustainability Committee meetings, the Executive

power generation facilities, we will continue to contribute to

Officer makes regular reports to the Chief Executive Officer.

regional revitalization, including environmental improve-

After due deliberation and consideration of each agenda item

ment, energy self-sufficiency, and the utilization of idle land,by the attendees of Sustainability Committee meetings, deci-

as well as further renewable energy supply to achieve car-sions are made by the Chief Executive Officer.

bon neutrality through initiatives such as wind power andbiomass power generation projects.

Strategies
Having established processes for identifying, evaluating,Managing Risks and Opportunities

and managing the impact of climate-related risks andBy managing identified climate-related risks/opportunities andopportunities on its business activities, strategies, andpromoting resilience initiatives, MIRARTH HOLDINGS aims tofinancial plans, MIRARTH HOLDINGS operates these

reduce business risks and realize value creation opportunities

processes in an appropriate manner. In identifying andto ensure sustainable and stable earnings over the long term.

MIRARTH HOLDINGS Integrated Report 2023

41

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

Contributing to the Reduction of Environmental Impact

Environmental Data

Efforts to Promote PPA

The Group’s Scope 1 and Scope 2 GHG (CO2) emissions and energy consumption are shown below:

Leben Clean Energy is responsible for the energy businessrenewable energy electricity to TEPCO Energy Partner in adivision of our Group. Regarded as having a promising busi-

planned manner, the company expects to supply a large

ness model after the FIT scheme comes to an end, thenumber of consumers by responding to their various needs.

Greenhouse Gas (CO2) Emissions

Energy Consumption(t-CO2)

FY2020

FY2021

374

Scope 1

1,585

Scope 2

FY2022

380

1,696

610

3,171

(kL of crude oil equivalent)

Remarks
Combustion of city gas,kerosene, gasoline

Use of electricity andcold water

FY2020

FY2021

FY2022

Electricity

915.2

1,020.8

1,782.5

To further promote PPAs, in January 2023 the company

City gas

3.2

0.5

61.8

signed a memorandum of understanding with Mitsui & Co.

LP gas

0.0

0.4

56.1

Gasoline

140.8

145.2

136.7

Kerosene

1,959

Total

2,076

3,781

* The scope of environmental data calculation covers the MIRARTH HOLDINGS Group(nine consolidated companies).
* The period covered is FY2020 to FY2022 (April 1, 2020 to March 31, 2023).
* The figures for FY2022 are provisional and subject to change.
In addition, from FY2022, with the expansion of the boundary of electricity use, etc., thescope of aggregation of business activities is additionally aggregated.
* Excluding GHGs other than CO2 (chlorofluorocarbons, etc.) on account of theirextremely small amounts, the Group only calculates and reports CO2 emissions.

company is developing Power Purchase Agreements (PPAs),

0.7

0.3

0.1

which are direct contracts with electricity consumers.

site corporate PPA.* Leveraging the project development
capabilities of Leben Clean Energy, the project management

als to consumers as we aim to achieve carbon neutral status
in 2050.
PPA SchemePower generation equipment development,
maintenance and operation

capabilities of Mitsui & Co. Plant Systems, and the extensive
network of the Mitsui & Co. Group, we will provide solutions

0.0

0.0

3.0

for many consumers by establishing PPA development sys-

Cold water

1.2

0.4

0.5

tems and bringing about their commercialization at an early

1,061.1

1,167.6

2,040.5*T he scope and period covered by the energy data are the same as for CO2.
* The values for FY2022 are provisional and subject to change.
* Crude oil conversion is a measure to compare the size of different energy sources, suchas electricity and gas.

site corporate PPA schemes while striving to make propos-

Plant Systems, Ltd. covering the joint development of an off-

Light oil

Total

Our Group will continue to respond flexibly to various off-stage.
In July 2023, Leben Clean Energy also concluded a similar
memorandum with TEPCO Energy Partner, Inc. Providing

Power producer

Usage fees

Power plant
Renewable energy power

Consumer

Renewable energy power
Existing power grids*A system by which solar power generation facilities will be installed on idle land and otherlocations in remote areas outside the consumer demand areas throughout Japan, supplying electricity or environmental value by using existing power grids owned by general
power transmission and distribution companies.

Providing Environmentally Conscious Buildings and Spaces
ZEH Condominiums

To achieve the aforementioned GHG emission reduction

L.Biz Nihonbashi Acquired CASBEE Certification “Arank”

to reduce GHG emissions (Scope 1 and 2) due to the busi-

targets, our Group is primarily promoting the following four

At L.Biz Nihonbashi (Chuo-ku, Tokyo), an office building

Energy House)*1 condominiums, which are environmentallyness activities of the MIRARTH HOLDINGS Group by 50%

initiatives:

developed by the MIRARTH HOLDINGS Group, wefriendly and display excellent energy-saving performance.

Indicators and Targets

Roadmap for GHG Reduction

To achieve carbon neutrality by 2050, we have set a target

addressed controlling the heat load on the building enve-

At Leben Toyama Jinzuhonmachi ONE TOWER (Toyama

1. Promoting Green Power: We are promoting contracts forelectricity with low CO2 emissions and will switch to carbon-free or renewable energy-derived green power at all ouroffices, Company-owned recreation facilities, and otherlarge-scale sites nationwide by fiscal 2030.

lope to achieve environmental performance toward theCity, Toyama Prefecture), we achieved high heat insulation

realization of a decarbonized society and worked toperformance by undertaking special construction on, for

improve the indoor environment by controlling room tem-example, the exterior walls and openings. As a result, inperature and lighting. In addition, to encourage the use ofterms of its energy-saving measure grade,*2 the property

2. Implementation of Energy-saving Measures: In addition
to measures such as the Japanese government-initiated
Cool Biz and Warm Biz campaigns, we will promote reductions in the amount of electricity used by establishing theimplementation of energy-saving measures. These measures will include the appropriate use of air conditioning
loads in summer and winter and the setting of operational
standards for lighting areas and time zones by FY2025.

natural energy such as sunlight, the building has a highobtained a Grade 4 in the heat insulation performance(compared with FY2020) by FY2030 and to net zero by
FY2050. For Scope 3, we are currently working on energy
data aggregation and plan to disclose our GHG emissions
in this category in FY2023.

Greenhouse Gas Emissions Reduction Image
Result1(t-CO2)

1,959 t-CO2

2

GHG emissions

-50%

4

1,000 t-CO2

etc.

GHG
emissions

2020

42

3

2030

MIRARTH HOLDINGS Integrated Report 2023

2040

2050 (FY)

Takara Leben is committed to supplying ZEH (Net Zero

3. Electrification of Company-owned Vehicles: While currently promoting the introduction of hybrid vehicles for company use, our Group will follow government policy—thetarget of which is that “electrified vehicles will account for
100% of new vehicle sales by 2035”—and continue toswitch to more environmentally friendly electric vehicles(EVs) as we work to electrify our fleet of company-owned
vehicles.
4. Offsetting: We are engaged in the development and operation of renewable energy generation facilities and their utilization. To achieve virtually net carbon-free status by fiscal
2050, we will implement carbon offset measures such as
using specified wholesale supply and non-fossil certificates.

floor height and curtain walls.* To conserve water

grade category, whereas standard condominiums areresources, we also worked to reduce water consumption

awarded Grade 3, and a Grade 5 for primary energy con-through water-saving devices.

sumption. In addition, this property received the highest

1

These examples of consideration for environmental per-five-star rating under BELS, an energy efficiency rating sys-formance were highly evaluated, and the property was thetem that calculates the primary energy consumption of afirst in our series of office buildings to receive the “A” rank inhouse on a scale of one to five stars.

CASBEE* -Building (New Construction), a comprehensive
2

Leben Toyama Nishicho RESONACIA, the first ZEH con-assessment system for building

dominium in Toyama Prefecture,environmental performance.

also obtained the highest 5-star*1 A lightweight exterior wall that is installed toreduce the loads imposed on the building’s
structure by offering protection from windpressure from the outside and ensuring
watertightness.
*2 A system for evaluating and rating the environmental performance of buildings. The system comprehensively evaluates the quality ofbuildings, including environmental considerations such as energy conservation and theuse of materials and equipment with low
environmental impact, as well as indoor comfort and consideration for the landscape.

rating under BELS.
*1 ZEH (Net Zero Energy House): A house thatsimultaneously achieves a “comfortable indoor
environment” and a “net annual residential
energy consumption of approximately zero or
less.”*2 Energy-saving measure grade: Established by
the Ministry of Land, Infrastructure, Transport andTourism as a grade that expresses energysaving performance.
L.Biz Nihonbashi

Leben Toyama Nishicho
RESONACIAMIRARTH HOLDINGS Integrated Report 2023

43

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

Human Resources Strategy for Supporting Sustainable Growthachieve highly appropriate, fair, and transparent evaluations

The Group believes that each of its employees is a co-creatorand treatment based on the “Promise”: specific daily actionsof lasting growth for the future. And based on this belief, Takara

that employees should take. Through these efforts, we aim to

Leben has been promoting an HR system that will consistently

improve evaluation skills by promoting an understanding of the

produce the human resources needed to achieve its manage-

significance of the evaluation system and of the evaluation cri-ment plan. As part of this system, the Evaluation Committee

teria among those in management positions, and to providealigned evaluation criteria for behavioral evaluations, in order tomore acceptable feedback to employees.

Basic Policy for Personnel System

Personnel system which consistently nurtures talent required to achieve management plan
• Clearly state the type of people required by the Company to build a framework where employees can set out their career visions• Review distribution of labor costs to secure and keep talented people as well as improve motivation• Conduct training and selection to generate talented people for management positions• Carry out evaluation and treatment that are highly fair and transparent to nurture employees’ sense of acceptance and increase their
desire to grow44

360-Degree Diagnosis

Implementation of a Talent Management System

Takara Leben conducts a 360-degree diagnosis for the

As the Group has expanded in size, it has become increas-

purpose of training managers and above and improving the

ingly difficult for us to keep track of information regardingorganization. The 360-degree diagnosis is an effective

individual employees. This has also led to an issue with

opportunity to learn how one’s daily activities are perceived

personnel information and data being managed separatelyby those around them, to learn about gaps in perception

by and scattered among each Group company. In order tobetween oneself and others, and to gain an objective view

resolve this problem and in order to make the best of ourof oneself. The purpose of the 360-degree diagnosis is tohuman resources by managing personnel information

provide employees with multifaceted feedback from thoseeffectively and from multiple perspectives, Takara Lebenaround them so that they can understand the strengths

became a frontrunner among the Group companies inand weaknesses that they would not have recognized oth-implementing a talent management system.

• Management strategies• Business development

Organization

M2• Strategy implementation and management in one’s organization• Achieving department targets• Effective organizational operation• Section manager development

M1• Strategy implementation and management in one’s organization• Achieving section targets• Effective organizational operation• Developing subordinates

G3• Directing and guiding subordinates• Central roles in business execution,
improvement, and problem-solving

G2• Performing one’s work duties under thegeneral direction of supervisors• Business execution, improvement, andproblem-solving• Logical thinking abilities

G1• Performing one’s work duties under thedetailed direction of supervisors• Acquiring business experience andknowledge• Business stances• Business etiquette• Fundamental practical skills

Team

Individual• Organizational management• Fundamental management skills• Leadership • Problem-solving

DX Internship• Followership• Listening ability• Identifying problems• Setting and managing targets

Otherse-learning

HR System• Company operations

Selective

Real estate notary qualification acquisition support

Personnel Management

M3• Strategy implementation and management in one’s organization• Achieving Group targets• Effective organizational operation• Department manager development• Management strategies

Workplace

Improving organizations• Satisfaction rate of sales staff survey: 90%

Company

Rank-based

Improving operations• Percentage of employees with disabilities: 2.3%

Officers• Management strategy formulation anddecision-making• Corporate management

Company-wide
education

Evaluation• Training hours per employee: 24 hours

Scope

Feedback interview on evaluation of results and conduct• Percentage of employees taking paid leave: 70%

Definition

Practical knowledge training• Stress check examination rate: 100%Grade

360-degree evaluation• Percentage of female managers: 9.5% (FY2024)• Percentage of employees returning to work aftermaternity or parental leave: 100%On-the-job training• Encouraging employment ofdiverse human resources• Percentage of employees receiving healthcheckups: 100%

Training Structure Chart

Evaluator training• Employee health management

KPIs

The Group has worked to enhance our entry-level employee training programs, support for acquisition of Real
Estate Transaction Qualification, and other education and training systems in order to enable career design building
among each employee and to improve our overall strength as an organization. Under the Basic Policy for Personnel
System, we also provide educational programs that correspond to the capabilities required of each job rank.

Compliance and Harassment

Key Issues

Training Systems

Vision, Mission, and Promise

The MIRARTH HOLDINGS Group promotes “personnel development and the establishment of a rewarding workplace environment,” which is one of seven elements of the Medium-Term Management Plan. Strengthening humancapital through a unified Group effort is similarly important for the Group’s sustainable growth. We are therefore
striving to enhance our corporate culture and human resources system to enable a diverse array of employees toplay an active role in their respective fields.

Takara Leben considers the fostering of digital humanSupport for Acquisition of Real Estate Transaction
Agent Qualifications

resources to be an essential part of promoting DX over the

Takara Leben is promoting initiatives to encourage its

medium to long term, and therefore offers long-term intern-

employees to obtain the Real Estate Transaction Qualification

ships. In fiscal 2022, two students from an educational(hereafter referred to as Takken), requiring them to submit a

institution that trains engineers were invited for approxi-

study plan, providing guidance on study materials, and con-mately four months to receive work experience.

ducting mock tests. Takara Leben Realnet also provides support for obtaining the Takken qualification by conducting
in-house tests twice a week, using exercise books.

Pursuit of Well-being
Having raised the “future happiness of people and our planet” as one facet of our Purpose, we believe that pursuing the happiness of our employees is also part of our Purpose, as well as a central element of increasing corporate value. We therefore implement various initiatives for realizing the well-being* of our employees.
* A state in which one is physically, mentally, and socially fulfilled

Employee Happiness Survey

Strengthen Communication with Employees

erwise, and to improve their ability to demonstrate these

A talent management system is a tool that converts vari-

In October 2022, Takara Leben conducted a happinessIn order to create workplace environments that encourage

strengths by learning about their own behavioral tenden-

ous information on each employee’s skills, abilities, trans-

survey of our employees, and set KPIs along with examin-

employees to remain with the Company over the long run, Takaracies. In fiscal 2022, a questionnaire was sent to 85 persons

fers, and evaluations into data and centrally manages it.

ing future measures. The survey investigated “the level ofLeben conducts personnel interviews with all employees, as wellat the rank of deputy manager and above, surveying theBringing together this disparate information in a single loca-

happiness” and “which items are sufficient or insufficient.”

as “1 on 1” meetings where supervisors and subordinates dis-

individual, his/her supervisor, co-workers, and subordi-tion enables multifaceted analyses and visualization of

We will continue to conduct this survey in an effort tocuss topics of their choosing. Takara Leben Realnet is used tonates. Based on the results of the responses, feedback

human resource information. Along with leveraging thisenhance our measures.

conduct the personnel interviews with all employees, which serve

was provided to the individual.

information within the personnel strategy, we will graduallyto create positive workplace environments by reflecting employee

roll out the system to our Group companies.

opinions within the training systems, for example.

MIRARTH HOLDINGS Integrated Report 2023

MIRARTH HOLDINGS Integrated Report 2023

45

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

Human Resources Strategy for Supporting Sustainable Growth

Expansion of MIRARTH NOTE

Social Baseball Tournament

We operate an intra-group website called MIRARTH NOTE

Leben Home Build held a baseball tournament jointly orga-

for the purpose of sharing information and strengthening

nized by sales and in-house departments to promotecollaboration among the Group. Moreover, we regularly dis-

employee ties and communication across departments.

tribute videos of interviews

After the game, a social gathering was held for all partici-

with the management

pants. While nourishing theirteam in an effort to instillspirits, the participants deep-

the corporate philosophy

ened the friendship between

and management policies.

internal and external employees
throughout the organization.

Social Baseball Tournament

Human Rights Policy
We have established a human rights policy in order toclarify the Group’s approach to human rights in thecourse of our business activities. The Group expects all
stakeholders involved in our business to understandand practice respect for human rights in line with the
Policy, and we will work together to promote respect forhuman rights.

Human Rights Policy

twice a month in each section, encouraging staggered work

accidents,” and “overtime work” as important risks thathours and paid holidays, promoting telework, supplementing

threaten the safety and health of employees in the work-

personnel as needed, and promoting the introduction of DX.

investigations and reports on the actual situation and dis-Promoting Office Reforms

cusses ways to solve problems. At Health Committee meet-

Leben Clean Energy moved its headquarters to Iidabashi,

ings, specific problems related to working hours and otherTokyo, in November 2022. The new office incorporates aissues are raised, measures for improvement are discussed

free-address office layout that incorporates ABW (Activity

with management, and the determined measures are imple-

Based Working), a work style strategy for autonomously

mented sequentially.

optimizing the workplace environment and work style. In
this way, the new office is designed to activate communi-

Efforts to Reduce Working Hours

cation among employees that transcends departmental

2. S cope of Application

5. Dialogue and Discussion with Stakeholders

In fiscal 2021, Takara Leben introduced an “application sys-barriers and hierarchies, maximize productivity and effi-

3. KeyIssues Related to Human
Rights6. Information Disclosure

tem for extended PC use” linked to the turning on and off ofciency, and conserve resources by eliminating paper.

observing laws and regulations, social ethical norms, and

The Group acts with respect for the fundamental humanmatters specified in ethical rules.

rights of all stakeholders, including employees, while

Human Rights Policy

Promoting Diversity

Promoting the Empowerment of Women

personnel in rural areas due to the expansion of businessIn order to create workplace environments in which womenareas, and the growing needs of job seekers, Takara Leben

find it comfortable to work and that allow them to demon-

introduced the limited area employee system in fiscal 2022.

strate their potential, we have prepared various systems that

We aim to facilitate recruitment in local areas and to secure

correspond to different life stages. Along with promoting theand retain human resources by diversifying work styles.

Women’s Activity Promotion Project, in May 2022 Takara
Leben introduced a discount system for babysitters toenable employees to balance work and child rearing. In
October of the same year, we introduced the Middle Career
Track System as a new work style for women in sales positions who have returned to work after maternity or childcare
leave. Leben Clean Energy has also established a similar
project team, and is working to create a workplace environment where women can continue to work for a long time.

Introduction of Limited Area Employee System
In response to the urgent need to secure a workforce against
the backdrop of a declining workforce due to the falling birth-PCs. The system is expected to reduce overtime hours

In addition, a café space has been set up to create abecause if an employee continues to use a PC without

space for communication and work while relaxing, and arequesting extended PC use (overtime work) from the man-library with books recom-

ager, a warning will appear on the screen and the PC will bemended by employees has

shut down. On the other hand, it is expected that managers

been established to pro-will be able to visualize the details of their subordinates’

mote the sharing ofovertime work, thereby increasing their awareness of theinformation.

need to manage the organization in a well-balanced manner.

As a means of ensuring that a diverse array of human resources can play an active role regardless of gender, age,nationality, or disability, the Group promotes diversity, and engages in efforts to enhance the well-being of ouremployees along with our corporate value.

MIRARTH HOLDINGS Integrated Report 2023

Moreover, Leben Trust is implementing a no-overtime day

Takara Leben considers “traffic accidents,” “occupational

4. H
 uman Rights Due Diligence and Remedy/
Correctionh ttps://mirarth.co.jp/en/sustainability/social/humanrights/

46

Health Committee

1. R
 espect for International Human
Rights Standards

Respect for Human Rights

rate and aging population, the urgent need to secure

In order to achieve the well-being of our employees and improve productivity, the Group endeavors to create workplace environments that provide employees with room to breathe and work in health.

place, where the regularly held Health Committee conducts

and fostered a sense of unity
MIRARTH NOTE

Creation of Comfortable Workplace Environments

Employment of Persons with Disabilities
Leben Village, a farm in Chiba
City, Chiba Prefecture, employs
three people with disabilities anda farm manager to grow a variety of vegetables. In June 2022,
the disabled members who grew
the vegetables visited the Takara

Employees Working at Leben
Village

Leben headquarters and directly sold Leben Village vegetables, the proceeds of which were donated to the NPO
TABLE FOR TWO.
Please see the following site for details.

Leben Clean Energy Headquarters

Driving our transformation into an organization with diverse values based on the Purposein aims of achieving sustainable growth for the entire GroupThe Group’s human capital possesses a mindset of undertaking challenges regardless of age or experience, which is why I have assessed the organization as having an extremely high ability to execute our
mission. Moreover, I see the organization as having an egalitarian culture in which diversity has emergedby actively hiring mid-career individuals in step with the expansion in our business scope, even as theGroup has increased the number of new graduate recruits each year.
Under the Purpose that we formulated upon transitioning to a holding company structure, we must
evolve into a new type of corporate entity that transcends the framework of a general real estate business developer. While maintaining the culture and strengths we have built since our founding, going
forward I believe we will require personnel that can manage a growing organization from a broader
perspective. And as the major premise underlying this move, we at the Group Human Resources
Strategy Department have raised well-being as a theme to ensure employees can work with happiness.
Go Yamaji
Under this way of thinking, we are advancing personnel system reforms in regard to securing humanGroup CRO, Executive
Officer,resources, as well as a means of creating workplace environments that prioritize diversity and enable
General Manager of Groupjob satisfaction. Similarly, we are undertaking efforts to improve productivity, creativity, and the retention
Human Resources Strategy
rate. In regard to personnel development, we provide training according to job rank, organizational
Department and Officetransformation awareness training with an awareness of management participation by those selectedManager of President’s Officefrom among our younger employees, and vitalization of job rotations.
In order to achieve sustainable growth, I believe it is vital for each employee to take ownership of the Purpose and for us to fulfill oursocial responsibilities through business. At the same time, I feel we must construct scenarios that connect to earnings. We will therefore
work to build a structure that drives the Group forward as a unified entity and to realize Purpose Management by strengthening communications from and opportunities for interaction with management, all in aims of generating greater Group synergy.

https://mirarth.co.jp/en/sustainability/social/diversity/

MIRARTH HOLDINGS Integrated Report 2023

47

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

Creating Value Together with Customers and Local Communities

The MIRARTH HOLDINGS Group aims to be a “future environment design company that makes the future of people and the Earth happier,” and therefore actively engages in business that considers the “happiness” of people
and lifestyles and creates “happiness” for communities and society. By offering new value that addresses today’s
diversifying lifestyles, we contribute to the solutions for society’s challenges.

Key Issues• Support for diversifying lifestyles and globalization• Responses to changes to business models
brought by an ageing society and depopulation• Urban development and creating towns• Providing safe, secure products and services

KPIs• Supply of NEBEL series condominiums 3• Redevelopment projects
undertaken 2• Number of nonconformities related
to business processes and quality
standards 10 or less• Implementation of preventive
action sharing meetings• Community sponsorships 10• Training of SQMS® masters•A cquisition rate of housing
performance evaluation
certificates 100%

Proposals for Diverse Lifestyle Needs

In order to deliver environments that allow for safe, secure living, the Group engages in thorough process inspections and efforts to improve the quality of management services at the properties we provide. Moreover, we contribute to the safety and security of local communities in a way that transcends the framework of a real estatebusiness developer by providing emergency electric power in the event of disasters, for example.
Initiative to Improve Quality through Obtaining
ISO 9001 Certification

Disaster Preparedness Initiatives

With the aim of improving quality to comprehensively

and construction sites. In addition to daily inspections, Leben

support the creation of comfortable living environments forHome Build—which mainly engages in condominium con-customers, Leben Home Build and Leben Community havestruction—is working to achieve safer construction sites by

established a quality management system in accordance

conducting health and safety patrols at least once a month.

with ISO 9001, the interna-

Moreover, top management also conducts joint special

tional standard for quality

patrols with partners once a quarter. In July 2022, we visitedmanagement systems

four actual construction sites with representatives from eight

The Group strives to eliminate labor accidents at workplaces

established by thepartner companies to check working conditions from theInternational Organization

perspectives of daily man-

The demand for housing has changed with the increase in

Idea Competition “Personal Innovation Challenge
Pic”

for Standardization, andagement, on-site mainte-

the number of dual-earner households and single-person

Conceived to incorporate diversifying values at the earliest

have obtained certification.

nance, accident prevention,

households, and there is a growing need for properties thatpossible time and to connect to business expansion, theWe regularly monitor andfall prevention, and machine

are more convenient, such as those in the city center or“Personal Innovation Challenge Pic” idea competition is a

improve our management

accident prevention and to

close to train stations, rather than larger in size. The

new business proposal system. This system aims to foster

processes and revise our

encourage the implementa-“NEBEL” series of urban compact condominiums that

entrepreneurship and the building of a corporate structure

policies and goals as nec-tion of measures.

Takara Leben provides for singles and DINKs (doublethat creates new common sense under the slogan “A New

essary to continue to pro-income no kids) maximizes use of the manufacturing know-

Common Sense Begins.” If the profitability and marketabil-vide even higher quality

how we have cultivated through our new condominium

ity of the idea are recognized and commercialization isservices.

business to date, and is primarily available in areas like

decided, the originator can choose to “go independent as aTokyo, Saitama, and Osaka. We will continue to support

business company,” “be appointed as the head of a new

Service Quality Management System (SQMS )sources, mainly small- and medium-scale solar powerenriching, fulfilling lifestyles by supplying services that aligndepartment,” or “transfer the idea to a company.” The num-

In general, condominium management operations are prob-

plants, and is also working with each community to ensurewith modern

ber of entries in fiscal 2022 exceeded 350, of which fivelematic in that the level and content of service tend to vary

safety in the event of a disaster and strengthen disasterlifestyles.

passed the final screening round.

depending on the people providing it. Leben Community

preparedness. In order to further strengthen cooperation

Urban-type Compact Condominiums “NEBEL”

NEBEL SENDAI Plaisir

Establishment of Takara Leben Owner’s Club “DLPS”

Conclusion of an Agreement on the Supply ofElectric Power in the Event of a DisasterISO 9001 certification of registration(Leben Home Build)

Leben Clean Energy is developing renewable energy power®

therefore operates our proprietary Service Quality

with the local community and further enhance our disaster

Management System (SQMS®), which applies ISO 9001,

response capabilities, we concluded agreements with

The LUIC project is the Group’s original water system for

an international standard for quality management systems,

Mori-machi, Kayabe-gun, Hokkaido in October 2021 andcontributing to greater QOL for all manner of lifestyles

to condominium management, and promotes quality man-with Akkeshi-cho, Akkeshi-gun, Hokkaido in April 2022

through a commitment to water as an essential part of liv-

agement systems that stabilize the quality of our services.

regarding the supply of electricity in the event of a disaster.

ing. The system provides access to purified water for all

SQMS® classifies condominium management into four sup-By further improving our disaster response capabilities, we

aspects of life, and is available for all series of our own

port services (site management, financial management,

will continue our efforts to quickly stabilize people’s lives inbrands of condominiums.

asset management, and operations management), andthe event of a disaster, as well as to ensure a stable supply

applies a PDCA cycle to continuously improve quality.

of electric power and improve resilience.

“DLPS” for owners of our own condominium brand proper-

Non-touch Keys and Non-contact Elevators

ties. Specifically, this program strives to improve customer

Completed in February 2023, LEBEN YOKOHAMA

loyalty for the Takara Leben brand through an exclusive

YAMATE ONE WARD COURT (Kanagawa Prefecture) is a

mobile app for owners that provides them with services

property that takes into consideration the lifestyle of thethat benefit their lifestyles, including one that allows them to

New Normal. Using a dimple key (with built-in IC chip), resi-

request repairs for exclusive areas.

dents can open the common entrance without touching it,
while the elevators are also equipped with a function thatallows users to operate the floor buttons simply by holding
their hands over them.

MIRARTH HOLDINGS Integrated Report 2023

A Health and Safety Patrol

LUIC Project, a unique water system

Takara Leben established Takara Leben Owner’s Club48

Pursuit of Safety and Security

SQMS® Process Chart (Service Quality Management)
Management andplanning design basedon customer needs
Management outsourcing
agreements

Plan

Do

Quality plan proposal
Quality standards

Service quality plan design (quality plan) based on the management plan

Act
Continuous
improvement

SQMS®
Cycle
Improvement activities
Corrective action

Preventive action

Service provision activities

Provision of services in accordance with quality standards(product realization)

Condominium management outsourcing services

Check

Collection, analysis & evaluation activities

Collection

Analysis

Evaluation

MIRARTH HOLDINGS Integrated Report 2023

49

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Creating Value Together with Customers and Local Communities

Social Data

Regional Creation Initiatives

MIRARTH HOLDINGS Group

While maintaining a view to the solutions for social issues involved in residences and town planning, the Group is
actively engaged in regional and community revitalization projects centered on high-quality, safe condominiums.
Number of employees (persons)Urban Redevelopment of Machikatamachi and
Toriyokocho District 1, Numazu City, Shizuoka Prefecture

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

FY2018FY2019FY2020

FY2021

FY2022

Male

618

675

739

815

867

Female

274

298

322

385

426

Total

892

973

1,061

1,200

1,293

Male

37.8

38.2

38.0

39.0

38.9

Female

33.0

33.5

33.9

34.7

35.1

In November 2022, Takara Leben, together with Fujita

Participation in the THREE Excellent Building
Development Project in the Shinmachi 1-ChomeDistrict of Aomori City

Corporation, formed a joint venture with the Urban

As a new proposal for rejuvenating a department store in a

Redevelopment Association of Machikatamachi andregional city, Takara Leben participated in THREE, a project

Total

36.3

36.7

36.7

37.6

37.7

Toriyokocho District 1, Numazu City, Shizuoka Prefecture,

for the development of superior buildings in the Shinmachi

Male

4.5

4.8

4.9

4.8

5.1

and signed a basic agreement with the association as a spec-

1-chome district of Aomori City (former site of the Aomori

Female

3.6

4.2

4.0

4.1

4.4

ified business agent. This project aims to redevelop a part ofmain store of the Nakasan Department Store) promoted by

the arcade of famous stores, which was established in 1954

Shinmachi Machidukuri Corporation and Mik Corporation.

Total

4.2

4.6

4.6

4.6

4.9

as Japan’s first shopping arcade with fireproof and communal

Opened in April 2023, THREE is a 14-story property thatarchitectural style, and to redevelop the central city area

includes commercial facilities on the first through fourth

through the redevelopment. The Group is working in partner-

floors and a tower residence consisting of 85 residential

FY2018FY2019FY2020

FY2021

FY2022*1

ship with land and building owners, rights holders, and theunits on the fifth floor and above, making it possible to live

Male

222

261

292

271

361

government in a three-party approach to urban renewal.

without the stress of snow even in an area with heavy

Female

74

73

73

72

123

snowfall. We will contribute to the revitalization of the cen-

Total

296

334

365

343

484

tral city area of Aomori City by taking on the residential

Male

35.4

36.0

35.9

36.5

35.9

Female

32.8

34.4

35.5

34.9

33.7

Total

34.7

35.6

35.8

36.1

35.3

Male

5.5

5.6

5.8

6.1

6.0

Female

5.1

6.4

6.9

7.2

6.1

Total

5.4

5.8

6.0

6.4

6.0

Male

67

88

99

92

121

Female

6

8

8

7

15

Male

91.8

91.7

92.5

92.9

89.0

Female

8.2

8.3

7.5

7.1

11.0

Percentage of employees with disabilities (%)

2.19

2.06

1.98

2.70

2.00

Male

41.4

52.4

52.4

57.8

65.7

Female

66.2

67.9

67.6

69.1

78.1

Total

46.7

55.6

55.4

60.1

68.7

Male

5

12

13

12

15

Female

3

4

3

3

-

Male

0

0

1

0

7

Female

3

4

3

3

-

Male

0

0

7

0

46

Female

100

100

100

100

-

Stress check examination rate (%)

83.8

93.5

92.6

85.0

87.9

Training hours per person (hours)

(*2)

(*2)

14.2

18.2

28.3

Training cost per person (yen)

(*2)

(*2)

20,61228,01256,046----

4.51/7.0

Redevelopment Plan for the Former Okajima
Department Store Site

subdivision business for THREE.

Kofu City, Yamanashi Prefecture. This development will takeCommunity-based Shopping Center“tonarie Hoshida”

place on the site of the former Okajima Department Store, a

MIRARTH HOLDINGS jointly developed the community-

long-standing business that had operated continuously in thebased shopping center “tonarie Hoshida” (Katano City,

downtown area of Kofu City since 1843. The project aims to

Osaka Prefecture) with ES-CON JAPAN Ltd. We will lever-increase the number of downtown area residents, including

age the commercial facility development and management

those moving from the city center, and to attract visitors to

know-how that both companies have cultivated over thethe central city area, and toyears in aims of creating aserve as a starting point forcommunity-based commer-

the circulation of residents

cial facility that will be loved

and visitors, as well as toby the local residents, anddences and commercial facilities as our third development indevelop the central city area

will thereby contribute to thein a way that leads to the revi-

formation and development

talization of its liveliness.

Redevelopment Concept Image for theFormer Okajima Department Store Siteof a local community.

Average age (age)Average years of service (years)

Takara Leben

Number of employees (persons)Average age (age)Takara Leben will develop a complex consisting of tower resi-

Average years of service (years)

Number of managers (persons)Management ratios (%)

Percentage of employees taking
paid leave (%)
tonarie Hoshida

Number of subjects(persons)

Regional Revitalization Initiatives
Aqua Ignis Awaji Island

Akabane Noryo Festa 2022

Takara Leben and Takara Asset Management are participating in the Aqua
Ignis Awaji Island (Awaji City, Hyogo Prefecture) project, a natural hot spring
resort complex. This facility is the first national park Park-PFI* projectapproved in Japan.
This project will help increase the value of the region as a new business
scheme in cooperation with not only local governments but also other industries. We will continue to work hand in hand with national parks, as we did inthis project, to find better ways of public-private
partnerships, as we advance initiatives targetingthe development of the local tourism industry.

Takara Leben has participated in the Akabane
Noryo Festa since 2018 to contribute to thecommunity development of Akabane. In 2022,
the first time the festival was held in three years,
17 employees participated and sold foods. We
will continue to contribute to the revitalization of
the community by interacting with local residents
through building on
our track record ofparticipating in community development
in Akabane.

* Park-PFI: Park-Private Finance Initiative. A new method of developing and managing urban parks that utilizes the funds and expertise of private companies through public solicitation.

50

Strategies for Creating the Future for People and Our Planet

MIRARTH HOLDINGS Integrated Report 2023

Aqua Ignis Awaji Island

Akabane Noryo Festa

Childcare
leave

Number of recipients(persons)
Acquisition rate (%)

Happiness survey*1 On October 1, 2022, Takara Leben West Japan Co., Ltd. changed its company name to Takara Leben Co., Ltd. and merged with Takara Leben Tohoku Co., Ltd. Therefore, data aggregation is being conducted under the new organization.
*2 Data was compiled and disclosed in time for the new personnel system to begin operating from FY2020.

MIRARTH HOLDINGS Integrated Report 2023

51

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

Corporate Governance

Basic Approach

Corporate governance system (as of June 23, 2023)

To this end, our basic approach to corporate governance is todesign sustainable environments for a happier future for bothalways consider the happiness of all stakeholders, including cus-

people and our planet.” and recognizes that addressing issues

tomers, employees, business partners, local communities, andrelated to sustainability is an important management issue. We

shareholders, and to promote sound corporate activities by mak-will not only pursue profits, but also comply with laws, regulations,ing decisions quickly and responding flexibly to changes in theand corporate ethics, fulfill our social responsibilities as a member

business environment, as well as ensuring thorough complianceof the corporate community, and aim to sustainably enhance ourand transparency in decision making.

Ordinary General Meeting of Shareholders
Election

Nomination Committee

Election

Audit & Supervisory Board(outside auditors)(including outside directors)

Collaboration

Audit

ReportReportDirection

ReportDetails of Initiatives
Collaboration

2010

Introduction of executive officer system

2012

Introduction of stock option plan for stock-based compensation for directors(excluding outside directors) and executive officers

2016

Start of evaluation of the effectiveness of the Board of Directors

2017

Term of office for directors changed from two years to one year

2019

Establishment of Nomination Committee and Compensation Committee

2020

Appointment of outside directors as chairpersons of the Nomination Committee andCompensation Committee

2021

Appointment of female outside directors

ReportReportAudit

Group Internal Audit Office

ReportAudit

Departments

Representative Director

Executive Officers

ReportCompliance
Committee

Sustainability
Committee

Collaboration

Risk Management
Committee

Election/
Supervision

Efforts to Strengthen Corporate GovernanceCollaboration
Audit

Audit

Audit

Group Business Companies

Ratio of outside directors increased to more than one-third(4 outside directors out of 12 directors)
Revision of executive compensation system(introduction of non-financial indicators as evaluation items)
2022

Audit

Board of Directors

AdviseCompensation Committee

corporate value.

Years

Election

Accounting Auditor

The MIRARTH HOLDINGS Group has set “Our Purpose” as “To

Board of Directors

and the status of business execution. Also in attendance at the

The Company has appointed six directors, four of whom are outside

Board of Directors’ meetings are executive officers, the head of

directors. All four outside directors have been designated as inde-

the Group Internal Audit Office, and the heads of other depart-pendent officers. In principle, the Board of Directors’ meetings arements, who have received requests from the Board of Directors

held once a month, and also on an extraordinary basis as required

based on internal regulations, and express their opinions on eachto ensure that decisions are made prudently and promptly, and thatissue or reporting matter.

directors mutually supervise the status of business execution.

The Company holds a Group Executive Committee once a

Auditors are always in attendance at the Board of Directors’month to enhance the accurate decision-making process by hold-

Disclosure of the skills matrix

meetings and state their opinions as necessary. At the same time,

ing preliminary deliberations and discussions on important plans

Transition to a holding company structure

auditors work closely with outside directors and, as necessary,and implementation proposals related to Group management pol-Ratio of outside directors increased to more than two-third(4 outside directors out of 6 directors)

audit and oversee the running of the Board of Directors’ meetings

icies, management strategies, and Group management.

Items discussed by the Board of Directors as key management issues
Ratio of outside directors on the Board of Directors
Outside:20%

Internal:

80%

As of March 31,
2017

Outside:67%

Internal:

33%• As part of the implementation of our management strategy,
we made appropriate decisions on business execution, suchas the sale of existing assets in preparation for the early transition to an HD structure, and executed investments and loans
and debt guarantees, as appropriate, taking into account thefinancial condition of each Group company.

• As a result of the assessment of the effectiveness of the Boardof Directors in the fiscal year ended March 2021, the committee
discussed future initiatives such as enhancing discussions on
the Group-wide crisis management system and management
strategies, including investment in human capital, as well as
reflecting the views of shareholders and other investors.

As of June 23,2023

Corporate Governance System

Audit & Supervisory Board

Group Internal Audit Office

As a system for the check and balance of decision making, all three

The Company also established guidelines on internal audits andauditors of the Company are outside corporate auditors. Each audi-

established a Group Internal Audit Office as an independent orga-

tor is equipped with adequate background, experience, and mettle

nization reporting directly to the representative director toto objectively carry out assessments and verifications. Besides

enhance and strengthen internal audits. In the proposal and exe-

audits for the Company, the auditors are also involved in audits forcution of the internal audit plan, the office coordinates the sched-

On October 1, 2022, the Group transitioned to a pure holdingof Directors, the MIRARTH HOLDINGS Group has built a systemaffiliated companies, such as attending their board meetings andules of auditors and the Accounting Auditor and adjusts thecompany structure with the intent of establishing a framework thatto ensure management proprieties. This includes appropriate

interviewing their directors, maintaining firm relationships with thesescopes of audits to seek efficient operation of various functions.

will enable it to make quicker and more flexible management deci-mutual supervision by directors over the state of business execu-

companies. Furthermore, the auditors and the accounting auditor

Auditors accompany and witness operation audits conducted bysions, clarify profitability and business responsibilities for eachtion, and audit and supervision by auditors over directors’ state ofwork to further improve the effectiveness and efficiency of audits by

the Group Internal Audit Office, and work on building an effective

segment, effectively utilize management resources, and further

business execution. We also introduced an executive officer sys-

understanding and adjusting each other’s annual schedules; goingand efficient audit system by verifying the scope of the audit andstrengthen governance.

tem to clarify the management supervisory roles of directors andtogether to events such as onsite inspections and checks on model

collecting opinions as appropriate.

the business execution responsibilities of executive officers.

rooms, and exchanging information as appropriate.

In addition to prudent and swift decision making by the Board

52• In formulating our management strategy, we
undertook the election of managers in the HD
system to clarify management responsibilities. We are also actively exchanging views on
wage base pay increases as an investment in
human resources.

MIRARTH HOLDINGS Integrated Report 2023

MIRARTH HOLDINGS Integrated Report 2023

53

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

Corporate GovernanceEvaluating the Effectiveness of the Board of Directors

Director’s skills matrix (as of June 23, 2023)
Name

Position

KazuichiShimadaRepresentative Director, Group CEO, Group
COO and President Executive Officer

Masashi
Yamamoto
Kenji
KawadaChiakiTsuji
Keiko
Yamahira
NaohitoYamagishi

Director, Group CFO and Managing
Executive Officer
Outside Director

Corporate
Management

Finance/
AccountingLegal/Risk
Sales/
Management Marketing

















Outside Director



Personnel andLabor Management

IT

GlobalBusiness









Outside Director

















Chairperson













ChairpersonOutside Director

Nomination Compensation
Committee
Committee* Director is considered to have a particular “strength” are marked with “”Overview

fiscal period ended March 31, 2023, the Company has

In order to improve the functionality of the Board of

improved the evaluation method by conducting interviews

Directors, the Company conducts an anonymous question-of all directors and some of the Audit & Supervisory Board

naire of all directors and Audit & Supervisory Board mem-

members based on the results of the questionnaire. The

bers, including outside directors, with the help of outside

analysis and evaluation process and evaluation results for

consulting organizations, and analyzes and evaluates thethe fiscal year ended March 31, 2023, and the action plan

effectiveness of the Board of Directors. Moreover, since thefor the fiscal year ending March 31, 2024, are as follows.

Analysis and evaluation process
Conduct and tabulate questionnaires for
all directors and auditors

Evaluation Items (52 questions in total)(1) C omposition of the Board of Directors

Nomination Committee and Compensation Committee

The Compensation Committee’s specific considerations for fiscal

In order to increase the objectivity and transparency in decision-

2022 included the ongoing examination of the executive compensa-

making processes relating to personnel appointments andtion system. We have decided on the compensation of our directors

compensation of directors and others, and to further enhance andand executive officers based on a comprehensive consideration ofreinforce corporate governance structures, the Company estab-factors such as business performance, potential risks, and thelished the Nomination Committee and Compensation Committee

degree of progress in the Medium-Term Management Plan.

as voluntary advisory bodies.
Both committees are comprised of three or more directors
selected by resolution of the Board of Directors, of which a majority are independent outside directors, thereby providing appropriate opportunities for outside directors to participate and give
advice. The committees deliberate and submit reports primarily on
the matters listed on the right based on advice from directors.
The Nomination Committee’s specific considerations for fiscal
2022 included the development and selection of successors for
CEO and others, and made recommendations to the Board of
Directors regarding the appointment and dismissal of executives.

[Nomination Committee](1) Matters relating to the composition and balance of the Board of Directors(2) Matters relating to the election and dismissal of directors(3) Matters concerning the election and dismissal of representative directors
and executive officers(4) Matters concerning criteria for determining the independence of outside
directors(5) Matters related to succession planning[Compensation Committee](1) Matters relating to compensation of directors and executive officers(2) Matters relating to basic policies and criteria on compensation of directors and others(3) Other matters referred to the Compensation Committee by the Board of
Directors

About Skills Required of Directors and Training
The Company believes that it is essential to have a structure that

corporate management, or are highly specialized. Moreover, we

ensures diversity in an appropriate size by having a balanced sys-

conduct training for directors and Audit & Supervisory Board

tem of knowledge/experience/ability for directors to effectively ful-

members on a regular basis. For Audit & Supervisory Board mem-fill their roles/and responsibilities. Candidates for directors arebers, we continuously participate in external seminars and study

those who are excellent in character and insight, have achieved ameetings to acquire and update the knowledge required oftrack record in their previously assigned duties, are familiar withdirectors.

Reasons for nominations of outside directors and frequency of attendance at Board of Directors’ meetings
Name

Kenji
KawadaChiakiTsuji
Keiko
Yamahira
NaohitoYamagishi

54

Position

Reason for Nomination

Attendance at Board of
Directors’ Meetings for FY2022

Outside Director

Mr. Kawada was nominated for his involvement in the management of financial institutions and business firms, his wealthof experience and achievements regarding management, and his possession of extensive knowledge and insight.

19/19

Outside Director

Ms. Tsuji was nominated for her international work as a lawyer in Japan and Germany, her high level of insight, extensive
expertise, and wealth of experience and achievements.

19/19

Outside Director

Ms. Yamahira was nominated for her many years of involvement in management in the real estate industry, as well as forher wealth of experience and her extensive insight in management.

18/19

Outside Director

Mr. Yamagishi was nominated for his expertise and extensive experience developed over many years in the National
Police Agency as well as his occupational track record and experience at the Ministry of Construction (currently Ministryof Land, Infrastructure Transport and Tourism).

15/15

MIRARTH HOLDINGS Integrated Report 2023

Conduct interviews of all directors andsome auditors(size and diversity)(2) O peration of the Board of Directors(deliberation items, frequency of meetings, agenda materials, free andactive discussion, deliberation time, etc.)

Analysis and evaluation by the Board of Directors

Discussing issues and future efforts toimprove effectiveness(3) D iscussion and monitoring functions of the Board of Directors(formulation of management strategies with an awareness of profitability,
capital efficiency, etc., establishment of a system to realize DX promotion
and appropriate supervision, human resource strategies, and initiatives toimprove sustainability)(4) S upport system for directors and corporate auditors
Efforts to improve(personnel system and provision of training opportunities to support theiractivities)

Evaluation results for the year ended March 31, 2023 and initiatives for the year ending March 31, 2024

Evaluation results
for the fiscal year ended
March 31, 2022

The results of the questionnaire were generally positive, confirming that the effectiveness of the Board of Directors as awhole has been secured, in line with the initiatives implemented in the fiscal year ended March 31, 2022.
• As a result of earlier distribution of advance materials and advance explanations, the evaluation of this item improved
significantly.
• While it was noted that the number of opinions from internal directors has increased, it was also pointed out that more
free and vigorous discussion is needed.
• The Company was highly evaluated as appropriately overseeing efforts to implement the DX.

Initiatives
for the fiscal year ended
March 31, 2023

• Broadly revised the composition of the Board of Directors so that outside directors now account for more than half of
the Board, with two internal directors and four outside directors.
• As far as investments in human capital are concerned, considered a personnel system, training plans, and specialist
position recruitment following the transition to a holding company structure, and proposed and advanced measures
founded on “well-being.”• Formulated a succession plan framework.

Evaluation results
for the fiscal year ended
March 31, 2023

Although the evaluation is considered to lack continuity due to the transition to a holding company structure in October
2022, the results of the most recent questionnaire also confirm that the Board of Directors functions effectively.
• While recognizing that a framework to control and manage the entire Group as a holding company was in place, thepoint was made that control remained insufficient in real terms.
• Despite a positive evaluation of open discussions among each committee regarding risk management, sustainability,
and other agenda items, further clarifying the points at issue for Board of Director agenda items has become an issue.
• In addition to receiving a fairly positive evaluation regarding succession plan formulation, there were calls to execute thisplan at an early stage, as well as to implement plans for executives at Group companies.
Based on the results, the Board of Directors evaluated and analyzed the results, and exchanged opinions on issues andfuture initiatives to improve the effectiveness of the Board of Directors.

Initiatives
for the fiscal year ending
March 31, 2024

As a result, it was recognized that future issues to be addressed include the format of the Board of Directors and Group
governance following the transition to a holding company structure. Moreover, enhancing discussions on the Group’s
overall crisis management system and management strategy, including investment in human capital, was once again
raised as an issue. In response to this issue, the Company will consider improving regulations so that operations of theBoard come to focus on the supervisory function as initially intended.

MIRARTH HOLDINGS Integrated Report 2023

55

CONTENTS

Introduction

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Corporate Governance

Board of Directors, Auditors and Executive Officers (As of June 2023)

Executive Compensation

Directors

Basic policy

Policy and method of determining and calculatingcompensation

Directors’ compensation is determined based on advice
from the Compensation Committee, a voluntary advisory

Types of compensation

body, within the scope of the resolution passed at theGeneral Meeting of Shareholders, following a comprehen-

Overview

The following five items “P.C.F.P.A.” are evaluated on a five-point scale according to thedegree of achievement for each fiscal year,
taking into overall consideration the position,
responsibilities, years in office, industry standards, and the standards of othercompanies.

sive review of performance, underlying risks, degree of
responsibility for Group management, and degree of progress under the Medium-Term Management Plan. For executive directors, a fixed ratio of compensation will be linked
to performance and the degree of contribution made by

Basic compensationeach director, so that it will function as an incentive to(monetarycompensation)achieve sustainable growth and serves the purpose of link-• Performance: results in the division forwhich each director is responsible

The specific basic policy regarding executive directors’• In principle, stock options are issued if theperformance targets in a fiscal year areachieved.

• Designed to reflect the Company’s medium- to long-term management strategies and motivating executive directors to achieve it

Performance-based
compensation• Giving transparency, fairness and reasonableness to shareholders,
employees, and other stakeholders and determined through anappropriate process to ensure transparency, fairness andreasonableness(stock compensation-type
stock options)• Determined based on a compensation structure that is designed toinclude base compensation, linkage with individual evaluation andresults• Performance indicators are set each year
and reviewed in response to changes inthe environment as needed.
• Type A stock options exercisable after acertain period of time and Type B stock
options exercisable upon retirement are
granted.

Composition of Directors’ compensation
Directors’ basic compensation

Type A stock options

50%

40%

Type B stock options

Total (of which, outside directors andoutside auditors)

May 2016	Joined Takara Leben Co., Ltd. (currently MIRARTHHOLDINGS, Inc.)
General Manager of General Affairs Department,
General Planning DivisionJun. 2017	Director, Executive Officer, General Manager ofGeneral Planning Division, Senior General Manager
of Corporate Planning Department, General
Manager of Human Resources Department, andGeneral Manager of Corporate Planning Department
Apr. 2021	Director, Chief Financial Officer (CFO), Managing
Executive Officer, General Manager of
Administration Headquarters
Oct. 2022	Director, Group CFO, Managing Executive Officer
and Executive General Manager of Corporate
Planning Headquarters
Apr. 2023	Director, Group CFO and Managing Executive
Officer (in charge of Group Finance Department,Group Accounting Department and Group
Corporate Planning Department) (to present)

May 2003	Representative Director and President, Resona
Holdings, Inc.
Jan. 2016	Representative, TMA KAWADA OFFICE (to present)
Jun. 2017	Outside Director, PE&HR Co., Ltd. (to present),
Outside Director, Takara Leben Co., Ltd. (currently
MIRARTH HOLDINGS, Inc.) (to present)
Jun. 2018	Outside Auditor, Konishi Co., Ltd.
Jun. 2021	Outside Director (Audit and Supervisory Committee
Member), Konishi Co., Ltd. (to present)
Sep. 2022	Director, METRIKA Co., Ltd. (to present)

Total compensation(Millions of yen)

Chiaki Tsuji

Keiko Yamahira

Naohito Yamagishi

Director(Outside Director)

Director(Outside Director)

Director(Outside Director)

Oct. 1976	Passed the bar examination
Apr. 1979	Registered as lawyer with the Tokyo Bar
Association
Oct. 1990	Qualified as lawyer in Germany (Japanese law)
Apr. 1993	Lecturer, Bunka Women’s University (currently
Bunka Gakuen University)
Jul. 2001	Opened Yoshioka & Tsuji Law Office as partner
lawyerApr. 2004	Professor, Department of Law, Graduate School,
Yamanashi Gakuin University
Jun. 2017	Outside Director (Audit and Supervisory Committee
Member), Yorozu Corporation (to present)
Jun. 2019	Outside Director, Keihin Corporation (currently
Hitachi Astemo, Ltd.)
Jul. 2019	Partner Lawyer, Kinorr Tokyo Law Office (to present)
Jun. 2021	Outside Director, Takara Leben Co., Ltd. (currently
MIRARTH HOLDINGS, Inc.) (to present)
Jun. 2022	External Audit and Supervisory Board Member,Moriroku Holdings Company, Ltd. (to present)

Apr. 1983	Joined Kubota House Co. Ltd. (currently Sanyo
Homes Corporation)
Jun. 2011	Director and Managing Director/Executive Officer,
Sanyo Homes Corporation
Jun. 2012	Director, Sanyo Reform Co., Ltd. (concurrent)
Jun. 2013	Director, Senior Managing Director, and Executive
Officer, Sanyo Homes Corporation
Jun. 2015	Director, President, and Executive Officer, Sanyo
Homes Corporation
Apr. 2017	Representative Director and Chairman, Sanyo
Homes Community Corporation
Jun. 2019	Outside Director, Joshin Denki Co., Ltd. (to present), Outside Director, Fujitec Co., Ltd.
Jun. 2021	Outside Director, Takara Leben Co., Ltd. (currently
MIRARTH HOLDINGS, Inc.) (to present)
Jun. 2022	Outside Director, Shinagawa Refractories Co., Ltd.
(to present)

Apr. 1986	Joined the National Police Agency
Aug. 1994	Assistant Director, Road Policy Division, Bureau of
Public Roads, Ministry of Construction (currently
Ministry of Land, Infrastructure, Transport andTourism)Aug. 2010	Chief, Wakayama Prefectural Police Headquarters
Aug. 2013	Director, Driver’s License Division, Traffic Bureau,
National Police Agency
Jun. 2014	Deputy Director of the Imperial Guard Headquarters
Feb. 2016	Chief, Niigata Prefectural Police Headquarters
Mar. 2018	Director, International Police Center, National Police
Academy and Deputy Director-General, National
Police Agency (in charge of care for victims of crimes)
Jan. 2019	Chief, Hokkaido Prefectural Police Headquarters
Aug. 2020	Resigned
Jan. 2021	Advisor, Mitsui Sumitomo Insurance Co., Ltd.
Jun. 2022	Outside Director, Takara Leben Co., Ltd. (currently
MIRARTH HOLDINGS, Inc.) (to present)
May 2023	Senior Executive Director, Japan Contractors
Association of Traffic Signs and Lane Markings (topresent)
Jun. 2023	Auditor, UTMS Society of Japan (part-time)(to present)

Auditors

Total amount by compensation type (Millions of yen)

Number ofrecipients

Basiccompensation

Stock options

Bonuses

Retirement
benefits

572 (40)288 (40)284 (—)——

13 (5)

25 (25)25 (25)

—

—

—

3 (3)

597 (66)313 (66)284 (—)——

16 (8)(Notes) 1. The amount paid to directors does not include the employee salaries of directors concurrently serving as employees.
2. Stock options are the amount recorded as an expense in the fiscal year related to the allocated stock acquisition rights, and are received by seven directors.

MIRARTH HOLDINGS Integrated Report 2023

(in charge of Group Finance
Department, Group Accounting
Department and Group
Corporate Planning Department)

10%

Total amount of compensation of directors and corporate auditors (as of March 31, 2023)(of which, outside auditors)

Data• Affinity: the ability to build relationships• A level and a structure of compensation that enables the retention ofhigh-quality human resources

Auditors

Director(Outside Director)

May 1987	Joined Takara Komuten Co., Ltd. (currently
MIRARTH HOLDINGS, Inc.)
Jun. 2006	Representative Director, Executive Vice President,
and General Manager of Development Division
Apr. 2014	Representative Director, President, Chief Executive
Officer (CEO), Chief Operating Officer (COO), andChief Financial Officer (CFO)
Jun. 2019	Representative Director, Chief Executive Officer(CEO), and President Executive Officer
Oct. 2022	Representative Director, Group CEO, Group COO
and President Executive Officer (to present)• Contributing to increasing the corporate value of the Company(of which, outside directors)

Kenji Kawada

Director,
Group CFO andManaging Executive
Officer• Physical: the ability to promote businesscompensation is as follows.

Directors

Masashi Yamamoto

Representative
Director,
Group CEO,Group COO andPresident Executive
Officer• Foresight: the ability to assess and analyze
the situation, the ability to prepare business plans

ongoing concern.

Position

Kazuichi Shimada• Compliance: legal compliance, morals, etc.

ing to sound, effective, and stable management as an

56

MIRARTH’s Vision for the Future

Makoto Endo

Yuko Miura

Asami Honma

Outside Full-time Auditor

Outside Full-time Auditor

Outside Part-time Auditor

Shoichi Akisawa

Yoshitaka Tejima

Masahiro Yoshida

Tadayuki Hara

Hiroshi Iwamoto

Mika Takaara

Kentaro Taniguchi

Norihiko Yoshimura

Go Yamaji

Noriyoshi Iseki

Group CRO, General Manager ofGroup Human Resources
Strategy Department and Office
Manager of President’s Office

General Manager of Group DX
and VX Strategy Department

Executive Officers

MIRARTH HOLDINGS Integrated Report 2023

57

CONTENTS

Dialogue

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

The Role of the Board of Directors in Realizing a Future Environ ment Design Company

What kind of discussions did the Board of Directors have before setting thevision of becoming a Future Environment Design Company?
Kawada The restructuring was a critical decision madean understanding of the issues that need to be resolved.

by top management amid increasing Group earnings. As

These discussions also helped us to formulate a corporate

any company’s business portfolio becomes more diversi-

vision for Group companies. From top management offied, directors increasingly tend to focus on their own man-each company down to employees, we want to instill thedates. If this goes too far, discussions that examine theGroup’s purpose and values so that they can work freely

entire group are lacking, leading to a dysfunctional Board of

and rewardingly.

Directors.
Kawada It is worth noting that we have also clearly pre-Kazuichi Shimada

Kenji Kawada

Representative Director, Group CEO,Group COO and President Executive Officer

Director (Outside Director)

Shimada I agree. To avoid this, we decided to restructure

sented a vision for each Group company. In doing so, I

the Group in an effort to advance beyond the Takara Leben

believe that we have laid the foundation for strengthening

brand—which we have expanded and disseminated toand evolving the governance of each Group company anddate—to become a company that can contribute to social

for the entire Group based on the newly defined purpose,issues in more creative ways. MIRARTH is a combination ofvalues, and vision. It was the perfect time for each operat-

the words Mirai (future in Japanese) and Earth. This new

ing company to reaffirm its role and make a fresh start.

company name embodies the Company’s will to evolve into

Now, we are about to enter a crucial phase.

a company that makes a happier future for the Earth andWhat is the current state of governance in the MIRARTH HOLDINGS Groupand what is your assessment of its evolution to date?
Shimada I think there are many areas where the MIRARTH

seen considerable efforts to strengthen governance.

HOLDINGS Group’s governance needs to be strengthened
further. Previously, we had worked to enhance governance of

Shimada As the Group expands in the years to come, weTakara Leben as a single operating company, but with theintend to implement stronger forward-looking governance.

transition to a holding company structure in October 2022, we

From your vantage point as an outside director, how doclarified management responsibilities for each business portfo-

you feel in particular about the changes in governance?

lio. Through restructuring, we aim to improve the efficiency ofGroup management, set a direction for the development of

Kawada There has always been an atmosphere condu-

each business, and raise the awareness of each director.

cive to free and vigorous discussion, but I think that previously many of the topics discussed were about individual
business promotion. Currently, outside directors are awarethat they play a role in providing positive stimulus to theorganization by using their respective expertise to weigh inon themes for solving social issues and pursuing the ideal
form of corporate governance. From their own perspectives, outside directors freely express their opinions onsocial and environmental issues faced by the MIRARTH

its people by contributing to all communities everywhere. In

Shimada Exactly. In order to realize our vision, we areorder to spread this management vision Group-wide, steps

currently engaging in discussions with the Group Corporate

were taken to redefine the MIRARTH HOLDINGS Group’s

Planning Department about a growth story that extends topurpose (Our Purpose) and values (Our Values), while thefinancial areas. Corporate Planning presented the story to

Board of Directors spent time discussing how to incorpo-

the Board of Directors, which has begun considering andrate these ideas into each department.

discussing how the directors of each Group company cancontribute to the overall growth story of the MIRARTH

Kawada You are referring to MIRARTH HOLDINGS’ pur-

HOLDINGS Group.

pose, to design sustainable environments for a happierfuture for both people and our planet. The decision to
adopt a holding company structure clearly expresses thismission to each Group company. Presenting a granddesign throughout the Company is a management priority,and in that sense, I am confident that you have the management sensitivity to accomplish this. Outside directors
have provided advice and recommendations on how to
crystalize and incorporate the MIRARTH HOLDINGSGroup’s purpose and values.
Shimada I think that the discussions during Board meetings led to everyone’s satisfaction, as each director gained

HOLDINGS Group and its responses to changing businessconditions, while asking questions and making proposals
about the establishment of internal control systems. I thinkit has been difficult for internal directors who have carriedout the duties invested in them, as more things must be

58

Kawada The recent restructuring was a landmark reorga-

considered and discussions have become more in-depth. I

nization that lays out a vision for Group management goingget the sense that the stimulus that outside directors pro-forward. Looking back at the changes that have taken

vide is enabling internal directors and the Board ofplace since I became an outside director in 2017, I have

Directors as whole to grow.

MIRARTH HOLDINGS Integrated Report 2023

What skills do directors need and what challenges do you face towardrealizing the vision?
Shimada Directors of the holding company and Groupmanagerial skills to maximize performance. This is the mostcompanies need to enhance both their practical skills

important means to enable growth of the Group. To thishoned in pursuing each company’s operations and theirend, each director must also be strongly motivated to

MIRARTH HOLDINGS Integrated Report 2023

59

CONTENTS

Dialogue

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

The Role of the Board of Directors in Realizing a Future Environment Design Company

self-improvement and leading the organization. In terms of

Kawada While it is a given that people acquire experi-

corporate culture, I believe that the formation of a learning

ence and knowledge on the job, the key to carrying out

organization is essential for corporate growth, and we

one’s duties naturally is to look beyond logic and focus on

should take the initiative and challenge ourselves. The mostone’s emotional state as a means of becoming more satis-

important duty of directors is to put the Company on afied. Athletes and sports teams are said to be in the zone

growth trajectory, and it is their mission as entrepreneurs towhen they are in a state of peak performance. Ideally,

improve and implement what one has learned on the job.

organizations should be in the zone. This requires all
employees, starting with directors, to be mindful, while

Shimada Adopting a holding company structure has sig-

human resource development efforts must be further

nificantly changed the composition of MIRARTH Holdings’

brushed up.

Board of Directors, with outside directors now accounting

achieve the set goals, with an emphasis on further self-im-

for 67% of the Board. As the Company’s business domains

Shimada Another important thing is education that

expand, directors are required to have a wide range of skills

focuses on people’s emotions. This is known as

and incorporate highly specialized opinions from third-party

employee happiness (EH), and I think the challenge is toperspectives to strengthen governance. I intend to makeraise the level of emotional satisfaction of all employees

further use of the knowledge that outside directors

including managers. Promoting women empowerment inpossess.

the workforce must also be raised. The percentage ofprovement and training as an entrepreneur, as well as onincrease naturally over the long term.

women in management is not that high, so we are still acompliance. This is what we expect of all directors. We

Kawada The Board of Directors has changed a lot withlong way from having an internal female director. Rather

Kawada There are many talented female managers out

also expect each director to maximize the strengths ofthe current crop of outside directors. Outside directors playthan forcing an increase, I would like to encourage wom-there getting things done, so having an internal female

employees as they carry out their duties and support theiran active role in Board meetings since they read and fully

en’s participation with the hope that the number will

director may not be that far off.

individual growth.

grasp preliminary explanatory materials beforehand. I thinkthe variety of opinions expressed has helped the Board’s

Kawada It is often said that a company never grows

decision-making.

beyond its top management. This is a wise saying, andFinally, what should the MIRARTH HOLDINGS Group do to sustain growth forthe next 50 to 100 years?

directors play an important role in encouraging

What is your assessment of the MIRARTH HOLDINGS Group’s humanresources initiatives and what challenges do you see going forward?

expectations and satisfaction of all stakeholders as weagree with to build a sustainable corporate organization.

move forward together.

To start, we must complete our Medium-Term
Management Plan through fiscal 2024, but we will also

Shimada Thank you very much for your reassuring words.

Shimada At the MIRARTH HOLDINGS Group, we view

one can operate an energy business, and there is a short-take on the challenge of resolving practical issues throughWork should be fun, and I want to work with the diverse

employees as human assets. We provide training opportu-

age of talent in the energy industry as a whole. We needsuch measures as ESG initiatives and DX promotion

array of people in our organization to foster a sense ofnities at all levels as well as on-the-job training of course.

people who have an overarching grasp of energy policy.

rather than merely paying them lip service. Taking on the

excitement when starting something new, which means

challenge of solving management and social issues will

creating a MIRARTH team.

The entire management team is focused on improving
themselves, and I feel that younger employees are highly

Shimada In particular, to seize business opportunities, we

also generate new businesses. We will ceaselessly dare to

Toward realizing the sustainable growth of the MIRARTH

motivated to study. In addition, I hope that providing

intend to actively secure personnel with knowledge of bio-

enter new business fields and foster a corporate culture

HOLDINGS Group, Team MIRARTH will continue its efforts

employees with opportunities to challenge themselves in a

mass power generation, not only through in-house training,that embraces challenges but also tolerates failures along

to raise the expectations and satisfaction of all stakeholders

variety of positions will enable them to take the initiative to

but also through mid-career hires externally. We will also

the way.

based on the Group’s purpose and values.

develop and advance their careers within the Group to

focus on operating human resources systems that reward

grow as employees.

those who work hard and achieve results.
In order for our employees to grow, we need a corporate

60

Shimada We must make efforts that all stakeholders

Kawada I consider you to be a perceptive manager.
Such a manager makes and implements decisions in a

Kawada On the other hand, I see issues with a lack of

culture that is upbeat and open to discussion. Behavioral

deeply insightful manner that transcends knowledge ofhuman resources capable of handling the energy and asset

economist Daniel Kahneman said people learn best whenbusiness management and corporate governance theory.

management businesses, which are poised to become thethey recognize that they do not know what they do not

Mastery of these theories is essential, but it is not thesecond and third pillars of the MIRARTH HOLDINGS

know. We encourage employee growth by fostering a cul-

only way to manage a business. Sensitivity is required. For

Group, even with its focus on real estate. Just because one

ture of openly telling people what they do not know andthe sustainable growth of the MIRARTH HOLDINGS Group,

has worked at an electric utility company does not mean

asking them to tell us what they do not know.

we share the management philosophy of raising the

MIRARTH HOLDINGS Integrated Report 2023

MIRARTH HOLDINGS Integrated Report 2023

61

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

Compliance

Risk Management

Compliance Basic Policy

Risk Management Basic Policy

The basic policy stipulates that in order to fulfill our corporate social responsibility, all organizations, officers, andemployees of the MIRARTH HOLDINGS Group shall comply with laws, regulations, and social norms, as well as
separately established ethics rules and shall strive to serve as an example for society.

The fundamental risk management policies of the MIRARTH HOLDINGS Group are to ensure the safety of customers, business partners, officers, employees, and their family members, fulfill our social responsibilities, protect the
global environment, maintain ongoing business activities, and raise corporate value. To this end, we identify andmanage individual risks. We have established the Risk Management Committee to carry out these measures, andwe have implemented comprehensive risk management throughout the Group.

Internal Whistle-Blowing System (Helpline)
The MIRARTH HOLDINGS Group has established an inter-

reporting individuals, the subjects of reports, persons who

nal whistle-blowing system (helpline) to accept requests forcooperate with investigations, and others by thoroughly

Risk Management System

consultations and receive reports relating to issues such as

implementing measures to prevent the parties concerned

The Company has set up the Risk Management Committee

officers. Moreover, the Company has established a frame-harassment and compliance violations. As an external pointfrom suffering disadvantages due to having made a report.

chaired by the President to examine and report on all risks

work that allows the Committee to make proactive propos-

of contact for whistle-blowing, we outsource responses to

We are working to strengthen compliance management

related to overall management and to discuss or decide on

als in response to individual risk management by setting up

inquiries to a law firm, with which the Group has not con-through the early detec-

measures and management to be implemented to avoid or

Business Strategy, Finance, IT and Administration, andducted business, and have established an independenttion and rectification of

reduce these risks. The Committee ensures that internal

Compliance subcommittees as necessary. The contents ofinternal consultation desk that directs inquiries to the cor-

improper conduct andcontrols are strengthened and misconduct and lack of

discussions at each subcommittee meeting are reported

other issues.

compliance in overall operations, including financial report-

and verified by the Risk Management Committee as appro-

addition to having introduced a mechanism whereby direc-

ing, are prevented. In order for the Committee to develop

priate, and are reported to the Board of Directors according

tors involved in the content of consultations and reports are

and continuously improve the Group’s risk management

to the contents of the reports, thereby ensuring prompt

system, the Board of Directors appoints a Group CRO

decision making in the event of risk occurrence.

porate auditors; anonymous reporting is also possible. In

not contacted, we are reinforcing the protection of

Pocket-size card

(Chief Risk Officer) from among the directors or executive
Risk management system

Board of Directors of MIRARTH HOLDINGS
ReportPersonal information protection

principles are thoroughly implemented and introduces

Considering the protection of personal information to be

numerous case examples to expand the knowledge ofpart of our CSR, we have established a management sys-attendees. Furthermore, we strive to foster greater under-

tem to protect such information in an appropriate manner.

standing of laws such as the Real Estate Brokerage Act,

In addition to having created a personal information protec-

the Consumer Contract Act, and the Act against

Chief Risk Officer (CRO)tion manual so that all employees are able to handle per-

Unjustifiable Premiums and Misleading Representations.

Group Legal Department

sonal information appropriately while carrying out theirbusiness duties, we distribute a personal information usage
and protection handbook, and make all employees thoroughly aware of basic knowledge and rules. We also provide internal training led by instructors that are legal
experts.

Harassment prevention
The Company conducts ongoing employee training toensure that each and every employee is aware of harassment and to create a corporate culture that prevents

Chairperson: CEO/General Secretary: CRO
Instruct/report

Cooperate
Supervise/instruct

ReportFirst line

Second line

Business departments of Group companies

Administrative departments

Risk officers of theGroup companies

Risk officers of theGroup companies

Business
Business
Business
departments departments departments

Administrative Administrative Administrative
departments departments departments

Third line
Audit

ReportGroup Internal Audit Office

Cooperate/advice

harassment. In harassment training, which is mainly for
managers, we aim to instill the basic concepts and specificPreventing unfair business dealings

actions needed to eliminate harassment. In addition, we are

Preventive Approach to Risk

We actively carry out specialized training to ensure that all

actively holding online training sessions, including manag-

In order to respond promptly to the occurrence of emer-

levels, responsibilities and authority, and information-sharing

transactions with customers are fair. The training, which

ers of Group companies, and promoting the creation of agency situations such as corporate scandals, accidents,

lines, as well as responsive measures to be implemented asaddresses conflicts of interest, aims to ensure that basic

Group-wide culture that does not tolerate harassment.

natural disasters, administrative action, serious criminal con-disaster countermeasures during a disaster.

duct by employees, and so on, the MIRARTH HOLDINGS

Dealing with Anti-Social Forces

62

Supervise
ReportSupervise/advise

Risk Management Committee

Audit & Supervisory Board

Supervise
Report/cooperate

The Company strives to create a corporate culture of legal and regulatory compliance and respect for human rights
by administering compliance education on a variety of themes to its employees and preparing a range of manuals.

Appoint/supervise

Raising Employee Awareness

The MIRARTH HOLDINGS Group’s basic policy against

a system to deal with anti-social forces. With regard to ouranti-social forces is to adopt a firm stance in dealing withtrading partners, we are also thoroughly implementing

them. In addition to actively participating in activities tomeasures for the elimination of anti-social forces througheliminate organized crime under the guidance of our legal

steps such as exchanging memoranda on severing ties

advisor, we collaborate with external specialized agencies,

with such forces and including clauses on their eliminationsuch as local police stations and legal advisors, to establish

in our various contracts and agreements.

MIRARTH HOLDINGS Integrated Report 2023

Additionally, each division works with the division respon-Group has established crisis management structures

sible for crisis management to formulate risk recovery andand adopted Crisis Management Rules and a Crisis

prevention plans and makes reports to the Risk

Management Manual. The Crisis Management Rules defineManagement Committee at its quarterly meetings. As acrises and specify procedures from initial responses to thepart of our business continuity planning (BCP), we adopt aformation and disbanding of response organizations. There

preventive approach to risk management, including theare also two sets of detailed crisis control rules regarding

preparation of manuals for the continuation and recovery ofcrisis responses and disaster countermeasures. With regard

business operations in the event of an emergency situation.

to crisis responses, the Rules specify crisis management

MIRARTH HOLDINGS Integrated Report 2023

63

CONTENTS

Introduction

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

Eleven-Year Financial/Non-Financial Summary

Financial Data

(Millions of yen)

2013.32014.32015.32016.32017.32018.32019.32020.32021.32022.32023.3

Net sales¥64,907¥71,963¥76,956¥76,268¥103,599¥110,851¥132,005¥168,493¥148,397¥162,744¥153,472
31,708Gross profit

14,37818,19918,311

17,835

21,86925,77926,88630,51629,92833,117

Operating income

6,361

9,798

9,257

7,563

10,34912,597

10,046

11,901

10,78911,877

7,030

Ordinary income

5,792

9,181

8,540

6,708

9,496

11,792

9,027

11,201

9,933

10,2585,033

Net income attributable to ownersof parent

4,074

5,869

5,718

4,308

6,107

7,367

6,426

5,361

4,693

6,215

4,584

Cash flows from operating activities

875

22,996(8,155)2,428

22,644

9,869

22,42847,70826,33023,189(722)

Cash flows from investing activities(1,590)(4,567)(7,998)(19,816)(27,540)(34,463)(34,347)(32,136)(25,090)(27,871)(46,354)

Cash flows from financing activities

1,229

(366)

6,314

19,6636,129

24,012

3,427(1,608)2,654(1,132)

61,531

Capital expenditure

1,658

4,163

8,095

22,756

20,81430,302

29,902

28,841

25,66625,40020,837

356

437

717

1,192

2,397

1,943

2,447

2,031

1,803

2,838

3,020

Depreciation and amortization
Total assets

75,013

95,891

101,738

129,744

139,874

177,588

184,893

195,448

204,315

223,473

341,669

Current assets

55,932

72,52467,31975,75386,585102,931

98,512

115,314125,686

142,625

188,728

Fixed assets

19,081

23,366

34,40053,94553,237

74,61886,28679,87478,53180,792

152,884

Net assets

24,147

27,13831,18933,67736,792

42,90747,734

51,13954,63259,601

65,142

Interest-bearing debt

35,09637,765

48,81270,396

79,864

106,663

111,821

114,036

118,570

127,969

227,385

Per Share Information:
Net income per share (Yen)

33.61

50.64

50.61

38.99

56.14

68.12

59.33

49.45

43.22

57.10

41.90

Net assets per share (Yen)

201.90237.53279.11304.71

339.29394.90436.68467.05498.78542.04558.95

Dividend per share (Yen)

15.0

5.0

6.0

13.0

15.0

16.0

16.0

19.0

14.0

18.0

22.0

ROE (%)

18.0

22.9

19.7

13.3

17.4

18.6

14.3

10.9

9.0

11.0

7.6

ROA (%)

5.6

6.9

5.8

3.7

4.5

4.6

3.5

2.8

2.3

2.9

1.6

Operating Indices:

Operating income margin (%)

9.8

13.6

12.0

9.9

10.0

11.4

7.6

7.1

7.3

7.3

4.6

LTV (%)

46.8

39.4

48.0

54.3

57.1

60.1

60.5

58.3

58.0

57.3

66.6

D/E ratio (Times)

1.5

1.4

1.6

2.1

2.2

2.5

2.3

2.2

2.2

2.1

3.5

Debt ratio (Times)

2.1

2.5

2.3

2.9

2.8

3.1

2.9

2.8

2.7

2.7

4.2

Current ratio (%)

116.4

192.7

192.3

193.4

176.7

171.5

182.0

168.3

175.7

225.9

190.1

Inventory turnover (Times/Year)

2.0

2.1

2.2

2.0

2.3

1.9

1.9

2.4

2.1

2.0

1.4

Equity ratio (%)

32.2

28.2

30.6

25.8

26.2

24.1

25.6

25.9

26.5

26.5

18.0

Dividend payout ratio (%)

11.2

9.9

11.9

33.3

26.7

23.5

27.0

38.4

32.4

31.5

52.5

2018.32019.32020.32021.32022.32023.3*2* On July 1, 2013, the Company split its shares at a ratio of 1:4 for one common stock. Dividend per share for fiscal 2013 and fiscal 2014 are calculated, reflecting the effect of the stock split.
Net income per share and net assets per share are also calculated based on figures after the stock split.

Non-Financial Data
2013.3

Number of employees

2014.32015.32016.32017.3

398

437

551

613

690

789

892

973

1,061

1,200

1,293

Male

323

348

426

455

496

547

618

675

739

815

867

Female

75

89

125

158

194

242

274

298

322

385

426

Percentage of female managers
(%)*1

10.2

11.5

9.4

8.2

9.2

8.1

8.2

8.3

7.5

7.1

11.0

Percentage of employees with disabilities (%)*1

0.44

0.41

0.34

0.94

1.20

1.09

2.19

2.06

1.98

2.70

2.00

*1 Scope of calculation: Takara Leben*2 On October 1, 2022, Takara Leben West Japan Co., Ltd. changed its company name to Takara Leben Co., Ltd. and merged with Takara Leben Tohoku Co., Ltd.
Therefore, data aggregation is being conducted under the new organization.

64

MIRARTH HOLDINGS Integrated Report 2023

MIRARTH HOLDINGS Integrated Report 2023

65

CONTENTS

Corporate Data (As of March 31, 2023)* Changed the company name from Takara Leben Co., Ltd. on October 1, 2022.

Representative:	Kazuichi Shimada,
Representative Director

Net sales:	153,472 million yen(Fiscal year ended March 31, 2023,
consolidated)
No. of employees:	1,293 (Male, 867; Female, 426)
(As of March 31, 2023, consolidated)

September 1972

Head office:	TEKKO BUILDING 16F,
1-8–2 Marunouchi, Chiyoda-ku,
Tokyo, 100-0005, Japan
TEL.: +81-3-6551-2125

Capital stock:	4,819 million yen(As of March 31, 2023)

Main Operating Companies

Takara Leben Co., Ltd.
Planning, development, and sales of
new built-for-sale condominium,
the real estate liquidation, real estate
rental, and distribution businesses

MIRARTH’s Vision for the Future

Strategies for Creating the Future for People and Our Planet

The Future as Created Together with Our Stakeholders

Governance Supporting Value Creation

Data

Stock Information

Company name: MIRARTH HOLDINGS, Inc.

Established:

Introduction

Securities Code: 8897
Stock Exchange Listing:Prime Market, Tokyo Stock Exchange

Takara Asset Management
Co., Ltd.

Takara PAG Real Estate
Advisory Ltd.

Renewable energy business

Investment management,
type II financial instruments, andinvestment advisory and agency

Investment managementbusiness

Trading Unit of Shares: 100 shares

Shareholder Registry Administrator:
Sumitomo Mitsui Trust Bank, Ltd. 1-4-1, Marunouchi,
Chiyoda-ku, Tokyo

Number of Shareholders:(As of March 31, 2023): 57,978

Major Shareholders (Top 10)

Number of Shares Held By Investor Segment(As of March 31, 2023)(As of March 31, 2023)
Shares(Thousands)

Shareholding
ratio (%)

General Incorporated Association
Murayama Asset Management

22,13318.29

The Master Trust Bank of Japan, Ltd.
(Trust account)

12,128

10.02

MIRARTH HOLDINGS, Inc.

11,192

9.25

Yoshio Murayama

3,500

2.89

Custody Bank of Japan, Ltd.
(Trust account)

3,288

2.72

NORTHERN TRUST CO. (AVFC)
RE FIDELITY FUNDS

2,039

1.69

Murayama Kikaku Co., Ltd.

2,000

1.65

RUDEN HOLDINGS Co., Ltd.

1,820

1.50

MSIP CLIENT SECURITIES

1,743

1.44

MIRARTH HOLDINGS Business Partner
Shareholding Association

1,461

1.21

Name of shareholder

Leben Clean EnergyCo., Ltd.

Total Number of Shares Outstanding(As of March 31, 2023): 121,000,000 shares Financial instrument trader(Securities companies)
1.82%
2,201 Thousand shares Treasury stock
9.25%
11,192 Thousand shares Non-Japanese
investors
13.23%
16,003 Thousand shares Individuals and others
36.33%
43,958 Thousand shares

Total number ofshares outstanding
121,000,000 Other domestic
corporate investors
23.54%
28,482 Thousand shares Financial institutions
15.84%
19,161 Thousand shares

Leben Community Co., Ltd.
Real estate management,
real estate rental, insurance agency

Leben Home Build Co., Ltd.

Declaration of Authenticity

New detached house sales business,
construction

Takara Leben Realnet Co., Ltd.
Real estate distribution,
consignment sales business

Publication of the MIRARTH HOLDINGS, Inc. Integrated Report 2023

Leben Zestock Co., Ltd.
Real estate renewal and resale,real estate rental business

Leben Trust Co., Ltd.
Rental management,
real estate rental businessTakara Leben (Thailand) Co., Ltd.
Investment in real estate business

Kensuke Suzuki
IR Officer

Real Estate Business

Energy Business

Asset Management Business

Other Businesses (construction, hotel management, etc.)

66

MIRARTH HOLDINGS Integrated Report 2023

MIRARTH HOLDINGS, Inc. Integrated Report 2023 is the second integrated reportissued by MIRARTH HOLDINGS, which is promoting transformation to realize its
purpose and create lasting corporate value.
Providing an explanation of the revisions to the Medium-Term Management Planannounced in May 2023 and our medium- to long-term energy business strategy,
the transformation of the Group’s business model was also taken into considerationin the making of this report. To convey the vision of our Group as a “future environment design company” in an easy-to-understand manner, we have worked to further expand information from an integrated perspective, including non-financial
information initiatives.
As the person with overall responsibility for producing this report, I hereby statethat the processes used were appropriate and the information accurate.
We hope that this report will provide readers with a better understanding of theGroup’s value creation story and an opportunity to deepen dialogue in concert with
our stakeholders. As we will be endeavoring to further expand and upgrade information disclosure in the years to come, we would like to convey our gratitude in anticipation of your ongoing support.

MIRARTH HOLDINGS Integrated Report 2023

67

TEKKO BUILDING 16F, 1-8-2 Marunouchi,
Chiyoda-ku, Tokyo, 100-0005, Japan
Investor Relations Office
TEL: +81-3-6551-2133 FAX: +81-3-6551-2139
https://mirarth.co.jp/en/