Dialogue with shareholders | IR information | MIRAIT ONE Corporation

Dialogue with shareholders

Dialogue with shareholders (May 13, 2025 Up date)

IR activities

The Company holds two earnings briefings each year (for the 2nd and 4th quarters) for analysts and institutional investors. Videos of the earnings briefings are provided on the website, etc.
The Company endeavors to provide important information to overseas institutional investors in English in a timely manner.

FY 2023

One on One※ Japan Overseas Total
First Half 23 1 24
Second Half 42 9 51
Total 65 10 75

※Excludes inquiries by phone and email
Meeting to : analysts (sell-side/buy-side), fund managers, etc. Our side : IR Department (CEO,CFO and COO participate in some)

(Reference)
SR Meeting※ Japan Overseas Total
Total 5 － 5

Meeting to : Stewardship section (Responsible Investment Department, etc.) Our Side : IR, ESG Management Promotion, Human Resources, Human Resources Development, PR, General Affairs

Financial results briefing for analysts
2Q event date Nov 17, 2023
participant 32
archive viewer Japan : 655
overseas : 61
4Q event date May 17, 2024
participant 31
archive viewer Japan : 762
overseas : 66
Briefing session for individual investors
First half event date Sep 21, 2023
participant 840
archive viewer 344
Second half event date Mar 22, 2024
participant 800
archive viewer 506

FY 2024

One on One※ Japan Overseas Total
First Half 48 5 53
NEW
Second Half		 55 19 74
Total 103 24 127
(Reference)
Debt IR※ Japan Overseas Total
First Half 10 － 10

Meeting to : Fixed Income Management Section（Credit Analyst） Our Side : IR, Finance

(Reference) NEW
SR Meeting※ Japan Overseas Total
Total 9 － 9

Meeting to : Stewardship section (Responsible Investment Department, etc.) Our Side : IR, ESG Management Promotion, Human Resources, Human Resources Development, PR, General Affairs

Financial results briefing for analysts
NEW
2Q		 event date Nov 21, 2024
participant 41
archive viewer

※as of April 30, 2025

 Japan：777
overseas： 84

※For details on the day, please refer to the video materials released on our website.

video materials : https://c-hotline.net/Viewer/Default/5346c922450c8dc22d84213a42220b7fb645

Briefing session for individual investors
First half event date Sep 20, 2024
participant 714
archive viewer 499
NEW
Second half		 event date Mar 19,2025
participant 713
archive viewer

※as of April 30, 2025

 635

※A briefing session for individual investors was also held by another provider on December 9, 2024.
（participant：about 2,000, Archive viewer：528） ※as of April 30, 2025

Dialogue Interests

Through dialogue with investors, we receive views and questions on various themes such as business performance, medium-term management plans, and business trends.

➀Summary

FY2024 First Half (April 2024 ～ September 2024)

theme opinions and questions
performance and evaluation
  • Evaluation of previous fiscal year’s financial results
    -Reasons for falling short of previous fiscal year's revised forecast
    (factors of growing unprofitability, contribution from Kokusai Kogyo)
  • Evaluation of financial results and outlook for this fiscal year
    -Progress evaluation of full-year plan
    -Reasons for the profit turnaround
    -Presence or absence of unprofitable projects
  • Current order status (Reasons for favorable conditions, profitability at time of order)
Medium-term management plan

Business strategy
  • Concept of this year's plan
    -Impact of unprofitable projects
    (possibility of new losses arising from existing orders)
    -Businesses to focus on this fiscal year and measures to improve profit margins
    -Kokusai Kogyo's full-year contribution
    (goodwill, seasonality, synergies, profit margins, SG&A)
    -Impact of core system renewal
  • Data center business (business situation, business scale)
  • Aims of regional management reform
  • Progress and evaluation of medium-term management plan
Status of the Medium-Term Management Plan
  • Human capital growth strategy
    ‐ Human resource development・Progress in human resource flow, Employee reaction ‐
  • M&A strategy
    -Synergy effects of SEIBU CONSTRUCTION, Kokusai Kogyo
    (amount and period of goodwill amortization)
    ‐ Past evaluations and future targets ‐
  • Approach to financial discipline (ratings, equity ratio)
  • Shareholder return policy（Target range for total return ratio）
MIRAI(future) domains
  • Profitability (current profitability of green energy business, software business, global business, future outlook)
  • Synergies with Kokusai Kogyo
    (specific areas of collaboration, expected profit contributions)
Environmental and Social innovation
  • Evaluation of financial results and outlook for this fiscal year
    -Impact of unprofitable projects, Measures to prevent recurrence
    -Performance evaluation of SEIBU CONSTRUCTION and Kokusai Kogyo
    (order status, profit contribution)
    -Driving factors for high targets this fiscal year
ICT solution
  • Evaluation of financial results and outlook for this fiscal year
    -Impact of unprofitable projects, Measures to prevent recurrence
    -Global Business Status
    -Status of data center-related businesses, Future outlook
Telecommunications infrastructure domain
  • Evaluation of financial results and outlook for this fiscal year
    -Overall situation and outlook for each telecommunications carrier
    -Reasons for improvement in profit margins and continuity
    -Reasons for favorable performance of NTT business
    -Outlook for Rakuten business
Others
  • Current status and issues regarding the Tokyo Stock Exchange's request
    (growth strategy from the balance sheet)
  • Functions and status of "Business risk management"
  • Response to the construction industry "2024 problem"

FY2024 Second half (October 2024 ～ March 2025)NEW

theme opinions and questions
performance and evaluation
  • Evaluation of financial results and outlook for this fiscal year
    -Progress evaluation of full-year plan
    -Presence or absence of unprofitable projects
  • Current order status, profitability at time of order, Business Environment
Medium-term management plan

Business strategy
  • Review of medium-term management plan targets and progress
  • Human capital growth strategy (recruiting, development, flow)
  • Funding policy (bond issuance, regional bank syndicated loans)
  • Shareholder return policy (Target range for total return ratio)
Environmental and Social innovation
  • Evaluation of financial results and outlook for this fiscal year
    -Performance evaluation of SEIBU CONSTRUCTION and Kokusai Kogyo
    (order status, profit contribution)
    -Expansion of social infrastructure projects (waterworks, roads)
ICT solution
  • Evaluation of financial results and outlook for this fiscal year
    -Status of data center-related businesses (Included Global), Future outlook
    -Business areas to watch other than data centers
Telecommunications infrastructure domain
  • Evaluation of financial results and outlook for this fiscal year
    -Outlook for each telecommunications carrier
    -Profit margin status, Outlook for this fiscal year
    -Reasons for favorable performance of NTT business
    -Outlook for Rakuten business
Others
  • Synergy effects of the three companies (goodwill amount and amortization period)
  • Business portfolio strategy (business withdrawal, asset disposal)
  • Approach to financial discipline (ratings, equity ratio)
  • Business Risk Management operation status
  • Path to achieving 1x PBR
  • Core system renewal costs

②Questions at Financial results briefing for analysts

May 17, 2024

questions
Q1
  • Reasons for the increase in gross profit for Environmental and Social Busines this fiscal year.
  • Regarding the profit margins of the "Zero Carbon City Business" and the "Public utility Infrastructure Management Business."
Q2
  • Regarding the request from the Tokyo Stock Exchange to "manage with an awareness of capital costs and stock prices," how do you plan to close the gap from the current market valuation?
  • As a construction company with strengths in the ICT areas, how will your digital transformation (DX) efforts contribute to improving profit margins?
Q3
  • Factors behind the improvement in gross profit for the ICT Solutions Business this fiscal year.
  • Kokusai Kogyo's FY2023 results and FY2024 plans. Regarding synergy effects.
Q4
  • Evaluation and summary of M&A activities to date.
Q5
  • Breakdown of factors behind the increase in gross profit for the Environmental and Social Business this fiscal year (Kokusai Kogyo contribution and organic)
  • Reasons for the increase in SG&A

November 21, 2024 NEW

questions
Q1
  • The progress of the ICT Solutions business in the first half of the year and the outlook for the second half
    -Have the unprofitable construction projects that occurred last year been resolved yet?
  • What areas do you plan to expand in the data center business?
    About your competitive situation with other companies.
Q2
  • In promoting the data center business, how will you address issues such as improving personnel skills and construction capabilities?
  • Are the synergies with Kokusai Kogyo going as expected?
Q3
  • Growth of the data center business, do you have any idea about the classification between the existing portion and the full-value type, and the time frame?
  • Status of "Business Risk Management" over the past six months

③Questions at Briefing session for individual investors

September 20, 2024

questions
Q1
  • The first quarter of 2024 saw steady growth in both orders and sales compared to the previous fiscal year, but what is your outlook for the full year plan?
Q2
  • Could you please give us a look back at your progress so far and explain your plans for the future in order to improve your PBR?
Q3
  • I think it will become even more difficult to secure of human resources, but what is the current recruitment situation and are any efforts being made to secure human resources?

December 9, 2024 NEW

questions
Q1
  • Given the low progress rate in the second quarter, will be able to achieve your full-year forecast?
Q2
  • Is your company’s business affected by changes in the environment, such as political trends, economic policies, and exchange rate fluctuations?
Q3
  • What does the company recognition about the stock price?
Q4
  • About your outlook for the PBR to recover to 1x.
Q5
  • About the shareholder benefits program.

March 19, 2025 NEW

questions
Q1
  • About the outlook for the data center business.
Q2
  • About promoting women's participation in the workforce.
Q3
  • Will the trands of the new U.S. administration have an impact on your company’s business?
Q4
  • What kind of synergy are you aiming for with Kokusai Kogyo?
Q5
  • About the current situation and future prospects of the telecommunications construction business.

Feedback to management

We regularly provide feedback on IR implementation status, investor interests, and views to senior management at Group Management Counci and Board of Directors.

Main measures

①Setting and changing medium-term management plan goals

  • In order to further strengthen shareholder returns, from fiscal 2022, we will adopt a policy of "stable dividend growth" and "flexible share buybacks."
    In addition, the KPI for the total return ratio has been raised from the conventional "30% or more" to "50% level".
    Furthermore, in November 2023, we will continue to follow our basic policy and, in order to clarify the linkage between investment in growth and shareholder returns, we will redefine our total return ratio "50%～70%" target range and strive to strengthen the return.
  • Regarding treasury stock with no intended use, we have changed our policy from "Considering cancellation" to "Actively cancel" it.
    - 9 million shares (equivalent to 8.7% of issued shares) will be cancelled in Feb, 2024 -
    - 3 million shares (equivalent to 3.2% of issued shares) will be cancelled in Feb, 2025 - NEW
  • In order to promote management that incorporates the perspective of shareholders, we have set ROE and EPS growth rates as management targets in the 5th Medium-Term Management Plan.
    Furthermore, since we expect to incur a certain amount of goodwill amortization costs as a result of M&A going forward, we have decided to add EBITDA (amount and margin), which is an indicator of our cash flow generation ability, to our KPIs from fiscal 2024.NEW

②Disclosure of gross profit and gross profit margin by business segment

  • From fiscal 2022, we had disclose gross profit margins for three business segments (Environmental and Social innovation, ICT solution, and Telecommunications) in order to provide an appropriate understanding of business strategies and business trends.

③Holding business briefings

  • In March 2022, we held an "ICT Solution Business Briefing" to deepen understanding of new businesses.
  • A total of 25 products and solutions were exhibited at CEATEC 2024 held at Makuhari Messe for four days from October 15th to 18th, 2024.

④Video distribution of financial results presentation

⑤Number of directors

  • By resolution of the general meeting of shareholders held in 2024, the articles of corporation were changed to reduce the number of directors from 21 to 15.
    The number of directors (including audit and supervisory committee members) has been reduced from 19 to 13 (including 3 women).

⑥Expansion of shareholder benefits

  • The Company offers shareholder benefits to all shareholders holding at least 100 shares of the Company’s shares for 1 year or more.
    Previously, customers could only choose between a QUO card or a donation of comparable value to a social contribution, but the menu has now been expanded to include electronic money and "MIRAIT ONE MAI."
  • In FY2024, we had increased the number of electronic money types and expand the scope of "Mirait One Mai" (by lottery). NEW

⑦Disclosure of numerical targets for data center business NEW

  • Our data center business is accounted for in several segments:
    • 1) “Electrical and air conditioning (domestic construction)” in the environmental and social business.
    • 2) “Global (Lantrovision, cabling business in Asian countries),” “DC/Cloud (domestic cabling business)," and "Stock (independent operation of Osaka Daiichi Data Center)" in the ICT solutions business.
    The data center business has been expanding recently and is expected to continue to grow in the future, so we have disclosed the overall figures (planned values for FY2024).

IR information