ミライトＨＤ（1417） – Integrated report 2021

Comprehensive Engineering and Service CompanyMIRAIT GroupMIRAIT GroupIntegrated report2021MIRAIT Holdings CorporationPR Office5-6-36, Toyosu, Koto-ku, Tokyo, Japan 135-8111Phone: 81-3-6807-3120 Fax: 81-3-5546-2967https://www.mirait.co.jp/en/Company OverviewC O N T E N T SRatingsRating and Investment Information, Inc. (R&I): A-Japan Credit Rating Agency, Ltd. (JCR): AEnd of fiscal yearMarch 31Number of employees (consolidated)12,882 (as of March 31, 2021)*Number of consolidated subsidiaries79 (as of March 31, 2021)*Simple tabulation of all companiesOverview of MIRAIT Holdings CorporationDate of establishmentOctober 1, 2010Head office5-6-36, Toyosu, Koto-ku, Tokyo, JapanRepresentativeNAKAYAMA Toshiki, President and Chief Executive OfficerCapital7 billion yenStock Listing1st Section of Tokyo Stock Exchange(Security code: 1417)Shares Total outstanding shares 108,325,329List of Group CompaniesMIRAIT CorporationM’s Frontier Corporation / DAIMEI TECHNO CO.,LTD. / MIRAIT Solutions Corporation / Tohoken System Engineering Corp. / Meisei Correspondence CO.,LTD. / MIRAIT Mobile East Co.,ltd. / MIRAIT Mobile West Co.,ltd. / DAIMEI TUSAN CO.,LTD. / SINKO ELECTRIC CORP. / MIRAIT-X Corporation / TODENTSU Access Corporation / TODENTSU NETWORK Co.,Ltd / Nissetsu Co., Ltd. / Okisokou Co., Ltd. / Libnet CO., LTD. / TIMETEC Co., Ltd. / Trust System Corporation / HOPE NET Co., Ltd. / Line Connect Corporation / Tokaikoei Inc. / NIPPON Sangyo Corporation / DAIMEI SLK (PRIVATE) LIMITED (Sri Lanka)MIRAIT Technologies CorporationAST-ENG Corp. / Lapisnet Co., Ltd. / COTONET ENGINEERING Co., Ltd. / Ligare Co., Ltd. / Agility RISE Co., Ltd / Comlead Co., Ltd. / Nishinihondenko Corporation / MiratecDrone Corp. / Ground Create Co., Ltd. / KATAKURA CONSTRUCTION Co., Ltd. / MIRAIT Information Systems Co.,ltd. / ACTIS Co.,ltd. / CREiST Inc. / Fucom Corp. / Kinki Denki Corp. / MIRAIT Technologies Australia Pty. Limited (Australia) / MIRAIT PHILIPPINES INC. (Philippines)TTK Co., Ltd.TTK ENG Miyagi Co.,Ltd / HOKUBU CO.,Ltd / TTK ENG Iwate Co.,Ltd / TTK ENG Aomori Co.,Ltd / TTK ENG Akita Co.,Ltd / TTK ENG Yamagata Co.,Ltd / TTK ENG Fukushima Co.,Ltd / Tsukada Electrical Construction Co., LtdSOLCOM Co.,Ltd.SOLCOMMEISTER Co.,Ltd. / Yuwakogyo Corporation / Seikenkogyo Co.,Ltd. / Solcom Business Service Corporation / Chugokutsushinshizai Corporation / Dentsushizai CorporationShikokutsuken Co., Ltd.Ochidenki Corporation / STK Techno CorporationLantrovision (S) Ltd. (Singapore)Lantro (S) Pte Ltd. ／ Lantro (Malaysia) Sdn Bhd. ／ Lantro (Penang) Sdn. Bhd. ／ Lantro (HK) Limited ／ Lantrovision Korea Co. Ltd. ／ Lantro (Shanghai) Co. Ltd. ／ Hangzhou Lantro Co. Ltd. ／ Lantro Phils. Inc. ／ Lantro (Taiwan) Ltd. ／ Lantro Technologies India Pvt Limited ／ Vrnet (S) Pte Ltd. ／ Appsilan Asia Pte Ltd. ／ Infilan Pte Ltd. ／ Adnos Solutiens Pte Ltd. ／ Innovative Energy Systems & Technology Pte Ltd. ／ Lantro Myanmar Co. Ltd. ／ PT Lantro Technologies Indonesia ／ YL Integrated Pte Ltd. ／ Sun Power Electrical Pte Ltd. ／ Nectric Engineering Pte Ltd. ／ Shanghai Changling Communication Equipment Co.,Ltd. ／ Altro Solutions Pte Ltd. ／ Lantro (Thailand) Co. Ltd. ／ Lantro (Vietnam) Co. Ltd. ／ Lantro (Cambodia) Co. Ltd. ／ Lantrovision Inc.Including consolidated subsidiaries and overseas subsidiaries (as of July 1, 2021)03 President’s MessagePromote ESG-oriented Management06 Our Business13 MIRAIT Group’s ESG-oriented Management07 Foundation of Our Business/ Value Creation and Performance17 Realization of a decarbonized society through business activities09 Unfolding the Medium-term Management Plan11 Evolution of Our Business Structure Towarda New MIRAIT Group19 Contribution to the creation of environmentally-friendly and resilient cities and villages23 Safety and quality improvement25 Co-creation of social value through collaboration with partners27 Promotion of human resource development, workstyle reform, and health-oriented management33 Respect for human rights and promotion of diversity and inclusion35 Social responsibilities in the supply chain36 Helping local communities37 Enhancing Corporate Governance45 Thorough Compliance46 Thorough Risk Management47 Financial/Non-financial Data50 Status of ShareholdersEditorial PolicyThis report outlines the policies, plans, activities, and achievements of the MIRAIT Group to create value in the short, medium and long term. The business and direction of the MIRAIT Group outlined at the beginning of this report explains initiatives to enhance the capital that supports our businesses. In the report, we then present key initiatives in the business in line with the outline of the Medium-term Management Plan, and also report on the status of strengthening the management foundation with a focus on ESG. We also work to provide a concise yet comprehensive report about information that includes overall governance as well as changes in the financial and non-financial performance.BoundaryIn this report, we report on the MIRAIT Group as a whole. Please note that numerical data and some of the information published in this report are of the boundary for which such data or information is available at the time of publishing this report, as indicated in the text or in supplementary notices.Reporting PeriodFY 2020 (April 1, 2020 to March 31, 2021)Note: This report contains some data outside the above period so far as it complies with the editorial policy.Guidelines ReferencedInternational Integrated Reporting Framework issued by the International Integrated Reporting CouncilDate of PublicationDecember 2021InquiriesPR OfficeMIRAIT Holdings Corporation5-6-36, Toyosu, Koto-ku, Tokyo, Japan 135-8111TEL：81-3-6807-3120Related Information on our website• CSR informationhttps://www.mirait.co.jp/csr/(note: previous reports are also available)• Corporate Informationhttps://www.mirait.co.jp/company/• Business Informationhttps://www.mirait.co.jp/service/• IR Informationhttps://ir.mirait.co.jp/index.html01MIRAIT GroupIntegrated report 202102President’s MessageNAKAYAMA ToshikiPresident and Chief Executive OfficerWith a focus on contributing to the resolution of social issuesin Japan and overseas, we will further enhance our corporate valueand achieve sustainable growth.Unchanging Responsibilities and Continuous ImprovementWe, at the MIRAIT Group, have been engaged in the social implementation of infrastructures throughout our history, including before we became the current MIRAIT Group. Through engineering, we support the development of people’s lives and industries, and once a natural disaster such as a typhoon or earthquake strikes, we do our best to maintain and restore the infrastructures. Our social responsibilities of this kind remain unchanged today when information and communication networks have evolved, and will do so even with further development in the future.While fulfilling these responsibilities, we will utilize the latest knowledge and technology and make every effort to improve ourselves in order to meet the expectations of our customers and society. This principle is also in line with Matsuo Basho’s words we often refer to: Fuekiryuko, which expresses the idea of immutability.Achieving Targets Early and Establishing “True Strength”In our fourth Medium-term Management Plan for the three-year period starting in FY 2019, we, the MIRAIT Group, set targets for the final year (FY 2021): net sales of 450 billion yen, operating income of 27 billion yen (operating income ratio of 6%), and ROE of more than 8.0%. To achieve these targets, we set up three pillars: “strengthening of the profit structure of existing businesses,” “strengthening of the growth potential of business in new fields,” and “strengthening of the management base.”In FY 2020, we minimized the impact of the spread of the new coronavirus infection on the progress of construction and new orders by introducing new workstyles. We achieved all of our targets one year ahead of schedule, thanks to the concerted efforts of our employees to implement the three pillars as well as government measures (introduction of ICT in schools and depopulated areas) that provided a tailwind. To return these positive results to our shareholders, we increased the annual dividend (by 5 yen, to 45 yen per share) and bought back our own shares (6 million shares in total) during the fiscal year.In the current fiscal year, we are working to establish this achievement as our “true strength,” as well as to further strengthen shareholder returns.Business Strategy Towards 2030In November 2021, the MIRAIT Group announced the outline of its business strategy for the next stage. The business strategy was Results (FY 2019)Results (FY 2020)Planned Figures (FY 2021)*Net salesOperating income441.1 bil. yen21.9 bil. yenOperating income ratio5.0%463.7 bil. yen30.1 bil. yen6.5%480.0 bil. yen32.0 bil. yen6.6%formulated due to the establishment of the new MIRAIT Group as a result of the integration of three companies, namely, MIRAIT Holdings Corporation, MIRAIT Corporation, and MIRAIT Technologies Corporation (scheduled for July 2022), and projects a vision for the year 2030.The business strategy is centered on contributing to the resolution of social issues in Japan and overseas. To that end, it has identified the key social issues that we need to address. In relation to the growing demand for environmental conservation, it focuses on “Realization of a decarbonized society through business activities” and “Contribution to the creation of environmentally-friendly and resilient cities and villages.” We will be making more active proposals from this perspective to companies in various regions, as well as to national and local governments.The MIRAIT Group’s Purpose (raison d’etre) and Mission (social mission) will also be redefined, and will be announced in May 2022.Pursuit of Human-Centered ManagementUnder the new business strategy, we will promote five business reforms, namely “5 Changes.”The first of these changes is expressed as “Human-Centered Management.” With engineering as its main business, the MIRAIT Group is a company built on the daily on-site work of its employees and collaborators. The business growth of the MIRAIT Group will be realized through the change and growth of each individual in charge of the site. First, as a foundation to ensure that such processes are working actively, we are promoting “Safety-oriented Management” and “Health-oriented Management” that create a workplace environment where employees can work with peace of mind. Then, we will promote workstyle reforms to realize the MIRAIT Group’s *Revised upward based on financial results for the first half of FY 2021version of “smart work” and build a “good company” for our employees. In addition, as an educational program that encourages people to change and grow, we will operate our “Future College” as an in-house university, expand our real campus where employees can practice their skills, and develop a digital learning environment that lets them learn anywhere in Japan. In order to create a group of human resources that can change society and change the future, we will invest heavily in our people.Accelerating Business Growth and Strengthening Profit StructureChange 2 refers to “Acceleration of Business Growth.” We will designate the fields in which we aim to achieve business growth as “Future Domain,” and work on it by organically combining the management resources of the “Communications Infrastructure Domain,” which is centered on the carrier business, and the “Corporate/Environmental and Social Domain,” which is centered on the solutions business.There are four key elements in the “Future Domain.” The first is to accelerate city and village development projects and projects that meet corporate needs for DX and greening. We will respond to the needs of each region and company by combining our technical capabilities in communications, IoT, ICT, electricity, energy, civil engineering, and other fields with our greatest strength, on-site capabilities. The second is to make a foray into the green power generation business that will contribute to the era of decarbonization. In addition to the construction, operation and maintenance of power generation facilities, we will become a power generation company ourselves and supply renewable energy. The third is to strengthen Material social issues (materialities) to be addressedEnvironmentSocialGovernanceChange 2Acceleration of Business Growth5 Business Reforms (5 Changes)Change 3Top-Class ProfitabilityChange 1Human-Centered ManagementChange 4Data Insight ManagementChange 5Strengthening of ESG Management Foundation03MIRAIT GroupIntegrated report 202104Acceleration of Business GrowthUntil nowInvesting resources in the “Future Domain”Base DomainFrontier DomainNTT OperationsICTMulticarrierEnvironmental andSocial InnovationFuture DomainShift to a full value chain modelAccelerating projects of “city and village development/corporate DX and GX (green transformation)”Entering the green power generation businessMaking software business a strategic subsidiaryExpanding global businessBringing together resources Mix of existing andnew fields of businessCommunications InfrastructureDomainCorporate/Environmental andSocial Infrastructure Domainour software business that supports customers’ DX and infrastructure virtualization by making it a strategic subsidiary. Amid the growing use of software as part of the foundation for all infrastructure, the MIRAIT Group will integrate and strengthen its software business. Lastly, the fourth is to strengthen our global business catering to the demand for sharing data centers and infrastructures around the world. With our experience in Japan as a foundation, we will build high-quality infrastructures to contribute to the development of other countries.In promoting the Future Domain, we will shift our business from the conventional construction-centered model to a full value chain model that encompasses all processes from planning and design to construction and operation.Change 3 represents “Top-Class Profitability.” We aim to strengthen our profit structure and reach the highest level of profitability in the industry by achieving efficient use of management resources through the three-way merger and the collaboration between the five companies, i.e., the new company resulting from the merger, TTK Co.,Ltd., SOLCOM Co.,Ltd., Shikokutsuken Co.,Ltd., and Lantrovision (S) Ltd., as well as by thoroughly promoting the efficiency of operations partly through DX.The Possibilities of DataChange 4 is “Data Insight Management.” Engineering and data are now inseparable. By extracting and leveraging insights from data, we are opening up many new possibilities.A prime example of this is digital twins in design and construction. In the past, the construction of communication base stations required frequent trips to the roof of the building, each time requiring permission from the building owner. However, using digital twins with 3D mapping technology can dramatically streamline the work by reducing the number of times you need to visit the site. This method is also valid for underground water pipes and telephone cables.The power of data is astonishing in the operation and maintenance as well. Steel towers installed over a wide geographical area are exposed to the elements, and gradually become rusty and damaged, but this is not easy to check. Utilizing the data collected by drones and other devices will greatly improve the efficiency of maintenance. AI-based diagnosis and prediction of water pipe deterioration is also promising.I often encourage my employees to “improve safety scientifically.” For example, we have installed drive recorders in all of our vehicles, analyzed the driving data and shared it with our field staff, which has significantly reduced the number of accidents. Data can also be very useful in preventing heatstroke and accidents at construction sites.Building an Organizational Foundation for ESG ManagementLastly, Change 5 is “Strengthening of ESG Management Foundation.” On September 1, 2021, MIRAIT Holdings established the ESG Management Promotion Committee. It is placed directly under the Executive Committee, chaired by me and joined by officers and presidents of Group companies. The committee meets regularly to discuss material social issues that the MIRAIT Group should address, as well as Group-wide ESG strategies and policies, ESG-related initiatives, and information disclosure.In October, we also endorsed the Task Force on Climate-related Financial Disclosures (TCFD). In addition to participating in the global movement toward carbon neutrality, we will identify and disclose the financial impact of climate change risks and opportunities.Moving forward by uniting the power of Group officers and employeesIn order to keep us all in step towards the year 2030, this fall we conducted a survey of all 14,000 officers and employees of the MIRAIT Group. Our shift to a business strategy focused on resolving social issues reflects the thoughts shared by many of us. We are also working on redefining our Purpose and Mission based on the results of this survey. We are determined to make a dynamic progress by uniting the power of employees in various positions who will drive the new MIRAIT Group forward.Your further expectations and cooperation to the MIRAIT Group will be greatly appreciated.Our BusinessBuilding and MaintainingStarting with telecommunications infrastructure, we build a broad range of systems offering greater convenience in daily life and society as a whole and ensuring greater safety and security (comprehensive engineering: configuration), and maintain them (servicing: maintenance and operation) both in Japan and overseas.FY 2020 MIRAIT Group Sales463.7bil. yenNTT OperationsMulticarrierEnvironmental and Social InnovationICT Solutions157.0bil. yen98.2bil. yen58.1bil. yen150.3bil. yen34%21%13%32%The MIRAIT Group builds, maintains and operates the NTT Group’s fixed-line communication facilities and provides support to make optical fiber networks even more prevalent. Although initially focused on building those facilities, in recent years we have expanded into facility maintenance and operation as well. When disaster strikes, our emergency repairs and reconstruction safeguard these communication networks.The MIRAIT Group builds, maintains and operates mobile communications facilities to support the increasing speed and capacity of mobile networks. We are currently conducting constructions for the expansion of 5G service area.Our Group also builds and maintains fixed-line communications facilities for communication carriers, conducts CATV, and builds and maintains fixed-line and mobile communications facilities overseas (Australia, Philippines, and Sri Lanka).The MIRAIT Group builds, maintains and operates solar power generation systems, EV charging stations and storage battery systems to make new energy infrastructures more accessible.In addition, we will contribute to the construction of next-generation environmental and social infrastructures through the elimination of utility poles (undergrounding of electric wires), electrical and air conditioning work, including LED installation, water and sewage work as well as road infrastructure work, such as bridge construction.With our ICT technology, we provide high-quality solutions that respond to a wide range of social and business issues, including introducing LAN/PBX and Wi-Fi, ensuring security, building management advancement, and promotion of operational efficiency. We have begun building and operating data centers and using drones to further expand the breadth of these solutions. A Step ForwardAs one of the themes for building the next social infrastructure, the MIRAIT Group places great importance on water. Shikokutsuken Co., Ltd. is involved in the construction of distribution reservoirs in projects to relocate and upgrade filtration plants. As well, SOLCOM Co.,Ltd. has developed “nano gate,” a self-cleaning system for building water supply and drainage pipes, which enables low-cost, low-labor maintenance of water supply and drainage pipes and other water-related facilities.05MIRAIT GroupIntegrated report 202106Engineering CapitalHuman CapitalIntellectual CapitalOrganizational CapitalSocial and Relationship CapitalFoundation of Our Business/Value Creation and PerformanceThe MIRAIT Group continuously enhances a wide range of non-financial capital supporting businesses to heighten medium- to long-term financial performance.We keep both the hardware and software directly used for engineering in good shape while regularly adopting the latest versions.The size and quality of human capital is crucial in engineering. With this recognition in mind, the MIRAIT Group works to cultivate its human capital that supports the growth of business in multifaceted ways.• Construction equipment (aerial work platform • Engineers/skilled workers with a high level of Major Capitalsvehicles, etc.)• Network/cloud service infrastructure• Various tools used for solutions• Internal information systemsMajor Capitalsproblem-solving skillscustomers• Trusted worksite supervisors• Sales staff who nurture good relationships with Major CapitalsDevelopment InitiativesDevelopment Initiatives• Systematic renewal of construction equipment• SD-WAN (software-defined networking)• Construction and operation of our own data center• Configuration of networked DC*1• Enhancement of core systems (for i-Construction)• Operational improvements through active adoption of RPA*2• Systematic training through a personnel • Bounty system for obtaining professional training systemqualificationsinterview program• Support for career advancement through an • Personnel rotation that encourages experience in diverse businesses and organizational cultures• Securing and promoting active participation of *1 System to link with leased data centers through underground diverse talentscables*2 Operational automation through robotics• Enhancement of engineering personnel (mid-career employment)The technical capabilities of the MIRAIT Group are a factor affecting its market competitiveness that often remains unseen. We place importance on turning tacit knowledge into explicit knowledge, sharing and developing it. We are also expanding our new knowledge through M&A, cooperation with various entities, and joint research.• Telecommunications construction and other engineering expertise• Knowledge in specialized relevant fields• Technical knowledge to be used in new solutions• Processes and techniques of value engineering• Quality control, occupational safety and health, environmental conservation and other expertiseDevelopment Initiatives• Operation of various management systems• Strengthening of construction management capabilities(Use and ongoing revisions of the Worksite Supervisor Handbook)• KAIZEN Suggestion Activity (reforms and development of articles and methods via suggested improvements)• Adoption of the latest technology• Open innovationNumber of employees12,882Number of KAIZEN suggestions24,489Personnel with qualificationsKAIZEN FellowsApprox. 9,350Approx. 17,65068The business operation system of the MIRAIT Group and partner companies is the foundation for our business growth in Japan and abroad.The trusted relationships with our stakeholders are an “unseen foundation” of the MIRAIT Group’s businesses.Major Capitals• Presence in each region and country• Business sites (sales, construction, and services)• Partner companies (smooth collaboration)• Networks with organizations and people related to businessDevelopment Initiatives• Expansion and deepening of regional coverage• Strengthening of Group operation systems• Collaboration meetings and regional cooperation meetings with business partners• ESG sourcingMajor Capitalscustomers• The brand based on confidence and trust from • Long lasting relationships with telecommunications carriers• Relationships with customers, other than telecommunication carriers, in various fields• Collaboration with municipalities and government agencies• Support from local communitiesDevelopment Initiatives• A long and proven track record• Clarification of quality standards as well as confirmation and validation of quality in each operation• Disaster recovery response• Local contribution efforts/activities to promote communication with local communitiesMiratecDrone’s JUIDA-CertifiedCourse Wins Top Prize,“President’s Award,” at“JUIDA SCHOOL AWARDS 2021”MiratecDrone Corp. won the President’ s Award, the highest award, at the JUIDA SCHOOL AWARDS 2021 held by the Japan UAS Industrial Development Association (JUIDA).MIRAIT Technologies Corporation’ s Drone Business Division, the predecessor of MiratecDrone, was once awarded the “JUIDA SCHOOL AWARDS 2019 Gold,” the highest recognition for “an accredited school that has contributed to producing a large number of personnel with safety-related knowledge and high piloting skills.”This year’ s “President’ s Award” recognizes the best drone education activities among schools that, in addition to implementing JUIDA-designated curriculums, conducted their own drone education activities during the year from April 2020 to March 2021 to improve students’ knowledge of drone-related laws and rules, their piloting skills, and their understanding of the importance of operating drones safely.Number of Group Companies57in Japan 28 OverseasNumber of partner companies with Ongoing BusinessOver1,000Sales Sites Lantrovision is Expanding Throughout AsiaNumber of Users of Information and Communication Facilities Supported by the MIRAIT Group (Japan)Approx. 41 millionTrack Record of Building CommunicationsFacilities Worldwide by the MIRAIT GroupOver100 CountriesNumber of Pilots Produced Through Our Drone School Which We Have Been Running for Three Years13 Countries and Regions 28 CitiesApprox.1,000Number of Sites Using “Casting Table 3.0”Contact Center Solutions83 Sites of 308 CompaniesEV Charging StationsApprox.1,600 StationsCumulative total of ee-TaB*® Hotel Room Information Service Terminals Introduced at HotelsOver1,000 Terminals at 69 FacilitiesThe data is for FY 2020 (as of March 31, 2021)07MIRAIT GroupIntegrated report 202108Unfolding the Medium-term Management PlanBased on rapid changes in the business environment, the MIRAIT Group is implementing a three-year medium-term management plan that began in fiscal 2019 to bring about sustainable growth.Outline of Current Medium-term Management PlanThe business environment surrounding us at the MIRAIT Group is expected to continue to change significantly in the future due to expectations for the expansion of 5G-related services, growing needs for new ICT solutions created under the “new lifestyle” promoted by the spread of the new coronavirus infection, and the promotion of renewable energy policies to realize a decarbonized society. We believe that we must strive to improve management efficiency and productivity of existing businesses, while expanding into and strengthening the competitiveness in new fields (“frontier business”) in the medium- to long-term, in order to enhance our corporate value and to achieve sustainable growth as a “Comprehensive Engineering and Service Company” amid such changes in the external environment. To this end, we have formulated our fourth Medium-term Management Plan for the three-year period starting from FY 2019.Business Activities and Results in FY 2020In FY 2020, the spread of the new coronavirus infection caused delays in the progress of some construction projects and also affected the volume of new orders obtained by the Group. The Group continued its business activities while taking measures to prevent the spread of the infection in cooperation with customers, including telecommunications companies. The Group also introduced new way styles, such as staggered work hours, teleworking, and office decentralization, and worked to improve the efficiency of business operations.The status of each business segment is as follows:■ NTT BusinessIn the NTT business, the Group worked to increase access construction work related to the increase in facility operation work and the expansion of teleworking, and to win orders for the Project to Promote the Development of an Advanced Wireless Environment, as well as to improve profit margins through the benchmarking method and to streamline operations by integrating offices.■ Multicarrier BusinessIn the multicarrier business, the Group achieved higher sales than the previous year thanks to the nationwide expansion of construction work for Rakuten Mobile and an increase in CATV work, although delays in the delivery of parts and materials and restrictions on entry caused some construction work to slip behind schedule. The Group also worked to strengthen technical capabilities and its human resource base by training multi-skilled engineers who are capable of performing construction and maintenance of wireless base stations and fixed lines in a combined manner.■ Environmental and Social Innovation BusinessAlthough there was an increase in air-conditioning work and expansion of water supply and sewerage work, sales in the environmental and social innovation business fell below the previous year’s level due to a decrease in large-scale solar power projects and electrical work.As a future growth driver, the Group also worked on the construction of smart communities that use EV chargers, storage batteries, and self-consumption solar power generation.Activities in FY 2021The actual results for FY 2020 exceeded the target for FY 2021, and we consider these good results to indicate our “true strength,” so we have revised our targets.In FY 2021, we are giving priority to the following challenges:1. Expanding business domains in new fields (frontier business)Accelerating the transformation of the business structure by strengthening inter-group collaboration, etc.Carefully selecting targets in response to changes in the market environmentStrengthening the management base by improving operating efficiency2. Improving productivity of existing businessesContinuously improving business efficiency through the benchmarking method, and maximizing integration synergiesPromoting multi-skilling across different businesses to improve operational efficiencyStrengthening of profit structure through various measures including business process reviewIn order to strengthen our cost competitiveness in water and sewage works and civil engineering works, the Group has decided to merge Tokaikoei Inc. and Miyakokensetsu Corporation (effective April 1, 2021).■ ICT Solution BusinessIn the ICT solution business, sales exceeded the previous year’s results by nearly 30 billion yen thanks to an increase in LAN/ PBX-related domestic business and increased sales of goods for schools (PCs, servers, etc.).The Group also worked to strengthen its technical capabilities by launching digital transformation (DX)-related services such as an “electronic shelf label” system and participating in verification tests for the practical application of new technologies.In addition, with the aim of expanding the global business over the medium to long term, the Group added YL Integrated Pte Ltd., which is engaged in electrical construction in Singapore, and two of its subsidiaries as well as Shanghai Changling Communication Equipment Co.,Ltd., which constructs communication towers and provides sharing services mainly in China (Shanghai) as consolidated subsidiaries of the Group.As for the consolidated financial results, net sales increased by 22.6 billion yen year-on-year to 463.7 billion yen and operating income increased by 8.2 billion yen year-on-year to 30.1 billion yen, marking the fifth consecutive year of increased sales and profits, and a new record high. As well, ROE was 11.0%.*The impact of the spread of the new coronavirus (COVID-19) epidemic has been judged to be insignificant, as there have been no events that could have a significant impact on the Group’s business performance and other conditions.Key Initiatives of the Fourth Medium-term Management Plan1. Generate new business opportunities• Development of solution business by leveraging the expanded regional coverage achieved through management integration• Facing the challenge of new business opportunities transcending the conventional framework of business domains and technologies2. Acceleration of transformation of business structure• Acceleration of transformation from carrier business to solution business• Promotion of transformation of quality in solution business (emphasis on profit)3. Enhance productivity and reduce costs through efficient operations• Ensuring operation of construction work through stronger ties with partner companies• Sharing of systems and consolidation of common operations4. Strengthen human resources• Improvement of productivity and securing of human resources through work style reforms• Strengthening and utilization of human resources supporting expansion into new business domains and transformation of business5. Promote ESG-oriented management and improvement of safety and quality• Accurately perceiving business in terms of both risk and opportunity from the perspective of strengthening ESG• Establishment of the MIRAIT Group brand responding to customers’ needs for peace of mind and reliability in “improvement of safety and quality”Targets and Results (Group Consolidated)FY 2021 Targets(Medium-term Management Plan)FY 2020 ResultsFY 2021 Planned FiguresNet sales450 bil. yen463.7 bil. yen480.0 bil. yenOperating income27.0 bil. yen30.1 bil. yen32.0 bil. yenROEMore than 8.0%11.0%-Results by SegmentNTT OperationsMulticarrierFY 2020 (YoY Change)157.0 bil. yen (+0.7 bil. yen)98.2 bil. yen (+1 bil. yen)6. Capital policy• Maintaining a sound financial standing• Management conscious of capital cost• Consideration of providing shareholder returns aimed at realization of ROE of 8% or moreEnvironmental and Social Innovation58.1 bil. yen (-8.6 bil. yen)ICT Solutions150.3 bil. yen (+29.5 bil. yen)09MIRAIT Group Key Performance IndicatorsThe Group uses sales, operating income, operating income ratio, and ROE (return on equity) as objective indicators (KPI) for determining the status of management goals. We recognize that these indicators will be useful for all stakeholders, including shareholders, to evaluate the effectiveness, feasibility, progress, etc. of the Group’ s management policies and strategies. Operating income and ROE are also used as calculation indicators in the performance-linked stock-based compensation plan.MIRAIT GroupIntegrated report 202110Evolution of Our Business Structure Toward a New MIRAIT GroupThe MIRAIT Group is reorganizing its business structure in order to continue to be a growing company in the midst of rapid changes in the business environment.Merger of Three Companies to Accelerate Business Structure TransformationIn October 2020, the Group announced that its Board of Directors had approved a policy to begin deliberations and preparations for a three-way merger between the holding company, MIRAIT Holdings Corporation, and its two wholly-owned consolidated subsidiaries (MIRAIT Corporation and MIRAIT Technologies Corporation).MIRAIT Corporation and MIRAIT Technologies Corporation, the core operating companies of the Group, have expanded their respective businesses, mainly in the information and telecommunications engineering business and the solution business for telecommunications carriers, and have greatly contributed to the enhancement of the Group’s corporate value. However, due to the rapid changes in the business environment facing the Group, in order to achieve further corporate growth in the future, it is urgent to change the business structure, i.e., to make growth fields (solutions business, new fields, etc.) into core businesses, and at the same time, to strengthen the profit structure of the information and telecommunications engineering business (carrier business) that we have been developing, and to reinforce the management foundation.In light of these circumstances, by accelerating the transformation of our business structure through this merger, we aim to remain a reliable group that builds and maintains the social infrastructure (telecommunications and energy) of the future by further speeding up decision-making among the Group companies, improving the efficiency of our management structure, reducing costs through the concentration of management resources, and further strengthening our profitability.We aim to realize the merger early in FY 2022. We have already reorganized our operations into teams according to individual growth fields such as the solution field (April 2021), the global field (July 2021), and the frontier field (October 2021). Outline of the Three-Way MergerMethod of mergerIt is assumed that the merger will be an absorption-type merger, with MIRAIT Holdings Corporation as the surviving company.Issuance of new shares, etc.(1) This is a merger between MIRAIT Holdings Corporation and its two wholly-owned consolidated subsidiaries, MIRAIT Corporation and MIRAIT Technologies Corporation, and there will be no issuance of new shares or delivery of monetary or other consideration.Trade name and business descriptionAs for the trade name and business activities of the company resulting from this merger, the articles of incorporation will be amended and a resolution will be adopted at the general meeting of shareholders.Purpose of the Reorganization and Merger of the Three CompaniesDevelopment of Solutionsand Other New FieldsInto Core BusinessesStrengthening of theProfit Structure of ExistingCarrier BusinessesLiving with COVID-Living with COVID-19Transformation ofBusiness StructureStrengthening of theManagement BaseGroup ManagementBrandsHuman ResourcesInformation SystemsSafety and QualitySteps in the Reorganization and Mergerof the Three Companies2022: Three-Way MergerNewly Integrated Company2021: Creation of TeamsMIRAIT Holdings CorporationMIRAIT CorporationMIRAIT Technologies CorporationSolution Field/Global Field/Frontier FieldPresent2020MIRAIT Holdings CorporationMIRAIT CorporationMIRAIT Technologies CorporationReorganization of MIRAIT Corporation Group CompaniesThe Board of Directors of MIRAIT Corporation resolved to start deliberations and preparations for the reorganization of its group companies at a meeting held in January 2021.The purpose of the reorganization is fourfold: (1) to improve efficiency and clarify missions by integrating and consolidating a large number of small group companies into a few core companies by business field; (2) to improve efficiency by consolidating inefficient overhead functions dispersed among the companies; (3) to strengthen the recruitment and brand power of each company; and (4) to strengthen the governance of the Group companies of MIRAIT Holdings Corporation.We have been working toward implementation in early FY 2021, and have first started to reorganize the mobile business.We have consolidated the mobile business-related operations that MIRAIT Corporation orders from its group companies into two group companies, one in the East Japan area and the other in the West Japan area. In addition, some of the operations conducted by MIRAIT Corporation were also transferred to the same two companies. Then, these two companies have changed their trade names as of July 1, 2021, in order to clarify their positionings as companies that conduct mobile business-related operations. Nissin Tsuukou Co.,Ltd. is now called “MIRAIT Mobile East Co.,ltd.” and DAIMEI NETWORK CO.,LTD. “MIRAIT Mobile West Co.,ltd.”Overview of the ReorganizationBusinessDetails of the reorganizationCompanies concernedMobile businessConsolidation of mobile-related operations into two core companies in the east and westNissin Tsuukou Co.,ltd., DAIMEI NETWORK CO.,LTD.Solution businessIntegration of two subsidiaries related to ICT/environment and energyMIRAIT-X Corporation, KOKKO SYSTEMS CO., LTD.Outsourcing businessIntegration of two subsidiaries to which common operations are outsourcedHOPE NET Co., Ltd., NIPPON TOYOCOM Co.,Ltd11MIRAIT GroupIntegrated report 202112Promote ESG-oriented ManagementMIRAIT Group’s ESG-oriented ManagementIn recent years, companies are expected to respond to social and environmental issues, as typified by the Sustainable Development Goals (SDGs), and there is a growing trend of evaluating corporate involvement in society from an ESG (Environmental, Social and Governance) perspective.The MIRAIT Group is building communication and electric infrastructure, including the development of 5G facilities, the construction of EV stations, and conducting renewable energy projects, by leveraging the strengths ESG Management Promotion Structurein field and technical capabilities that we have cultivated over the years, and we feel that we are expected to resolve issues of our customers, society, and the environment through the MIRAIT Group’s business.With growing expectations for contributing to the SDGs and resolving ESG-related issues, we will strive to contribute to the sustainable development of our customers and society and enhance our corporate value by promoting various measures.The MIRAIT Group has established a management system to promote ESG-oriented management with the aim of contributing to the SDGs and enhancing corporate value for sustainable growth.The ESG Management Promotion Committee, chaired by the President, will be established to formulate strategies and resolve issues related to overall ESG management in the MIRAIT Group.ESG Management Promotion Committee MembersChairPresident and Chief Executive Officer of MIRAIT Holdings NAKAYAMA ToshikiCommittee MembersDirectorsYAMAMOTO Yasuhiro, TOTAKE Yasushi, TSUKAMOTO Masakazu, AOYAMA Koji, HIRABARA Toshiyuki, IGARASHI KatsuhikoOperating CompaniesAKAHASHI Masayuki, ITO Fuminori, MIYAZAKI Tatsumi, SASAKI Takao, TAKEDA Yoshibumi, TSURUMI Yasuo, TAKAGI Yasuhiro, OCHI Yasuyuki, MINOWA Yoshiro, KAJI Akio, NAGAMATSU Noriyuki, TAKAYA YoichiroSecretariatESG Management Promotion Office, Strategy Department, MIRAIT HoldingsManaging Executive Officers in Charge of PRManaging Executive Officers in Charge of IRElection/DismissalGeneral Meetings of ShareholdersElection/DismissalElection/DismissalMIRAIT HoldingsAuditConsultation/ReportingBoard of Corporate AuditorsBoard of DirectorsCollaborationNomination andCompensation CommitteeSupervisionReportingInternal inspection sectionAuditInstructionReportingPresident and CEO(Group Presidents’ Council/Executive Committee)- Strategy Department- Finance and Accounting Department- Corporate Affairs Department- M’s Brain Center, etc.ReportingInstructionCompliance Exective CommitteeRisk Management Exective CommitteeESG Management Exective CommitteeCollaborationAuditInvestigationAccountingAuditor Audit/ReportingConsultation/ReportingBusinessManagementMIRAIT Group CompaniesMateriality Identification ProcessWe, at the MIRAIT Group, had previously identified material issues (materialities) when formulating the third Medium-term Management Plan in May 2017, but in light of recent changes in society and the environment, we have identified nine new materialities.To identify and decide on these issues, the ESG Management Promotion Committee held a series of discussions based on customer and employee surveys, opinions from stakeholders, important social issues extracted from international guidelines on social responsibility, and expectations of the MIRAIT Group, followed by deliberations by the Executive Committee and Board of Directors.■STEP1 Extraction and categorization of social issuesComprehensively extract issues to be considered by referring to the GRI Standards, ISO 26000, and other major international guidelines on the social responsibility of organizations, as well as the SDGs and evaluation items of ESG evaluation organizations.■STEP2 PrioritizationEvaluate and prioritize the extracted issues in terms of whether we should contribute to solving them, or whether they will lead to value creation, based on stakeholders’ expectations and the raison d’etre and missions of the MIRAIT Group.ESG Management Promotion Committee.Discuss and select material issues that the MIRAIT Group should address on a priority basis at the ■STEP3 Validation and identificationConfirm the appropriateness of the selected material issues in terms of their alignment with the MIRAIT Group’s management issues. Discuss the risks to the current business and future opportunities at the ESG Management Promotion Committee, and after deliberations by the Executive Committee and Board of Directors, identify material issues (materialities).Consult with relevant departments to determine measures and targets for the identified materialities.■STEP4 ReviewEvaluate activities against materialities based on targets and results, and disclose the evaluation results in the Integrated Report.Do a review based on questionnaires conducted inside and outside the MIRAIT Group, opinions received from external experts, international goals and guidelines such as the SDGs, and evaluations by ESG evaluation organizations. Use the results to revise materialities and goals and improve the content of disclosure as well as incorporate them into business operations.Extraction and categorization of social issuesExtract issues based on the GRI Standards, ISO 26000, and other major international guidelines on the socialresponsibility of organizations, as well as the SDGs and evaluation items of ESG evaluation organizations.STEP 1STEP 2PrioritizationEvaluate and prioritize the extracted issues in terms of stakeholders’ expectationsand the MIRAIT Group’s contribution to society.Validation and identificationConfirm the appropriateness of the material issues in terms of their alignmentwith the MIRAIT Group’s management issues.Discuss risks to the business and opportunities for future value creation at the Committee,and identify the material issues through deliberations at meetings of the Board of Directors, etc.STEP 3ReviewPerform activity evaluation and disclose the results in the Integrated Report.Review based on external experts, international goals and guidelines, evaluationsby evaluation organizations, etc.Use the results to revise materialities and goals and improve the content ofdisclosure as well as incorporate them into business operations.STEP 413MIRAIT GroupIntegrated report 202114Promote ESG-oriented ManagementMateriality ReviewImportance to socety/stakehodersliESMaterial issues (materialities)● Building and Maintaining an Environmentally-Friendly Society ・Realization of a decarbonized society through business activities ・Contribution to the creation of environmentally-friendly and resilient cities and villages● Building and Maintaining a Safe, Secure, and Prosperous Society ・Safety and quality improvement ・Co-creation of social value through collaboration with partners● Building and Maintaining a Culture Where People Respect Diverse Human Resources and Learn from Each Other ・Promotion of human resource development, workstyle reform, and health-oriented management ・Respect for human rights and promotion of diversity and inclusionG● Building and Maintaining a Fair and Transparent Corporate Group ・Enhancing corporate governance ・Thorough compliance ・Thorough risk managementEndorsement of the TCFDWe consider climate change as one of the issues that is highly relevant to the MIRAIT Group’s business activities.In October 2021, the MIRAIT Group endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)*, which aims to proactively disclose the financial impact of climate-related “risks” and “opportunities.” In addition to incorporating the risks and opportunities that climate change presents to the MIRAIT Group’s business into our business strategies, we will disclose appropriate non-financial indicators, work toward decarbonization, and through our business aim to contribute to society as a whole, including addressing overall environmental issues.Also, we have joined the “TCFD Consortium.”Importance to the MIRAIT Group’s businessThe recommended disclosure items are structured around four thematic areas that represent core information.elements of how organizations operate: governance, strategy, risk management, and metrics and targets.●Social issue group ●E ●S ●Gdecision making on investments, credit, and insurance underwriting and help stakeholders better etc. that endorse the TCFD to work together to discuss effective information disclosure by companies understand the concentration of carbon-related assets in finance.and initiatives to help financial institutions make appropriate investment decisions based on disclosed *The Task Force on Climate-related Financial Disclosures (TCFD) was established to formulate recommendations for more effective climate-related disclosures that will facilitate more informed TCFD ConsortiumThe TCFD Consortium is an organization established as a forum for companies, financial institutions, Relationship Between Materialities and SDGsOperation of Integrated Management SystemAs shown in the diagram below, the MIRAIT Group has organized its material issues (materialities) and the impact on the SDGs through the promotion of initiatives linked to these issues. We will contribute to the realization of each goal through our business activities.SDGsThe MIRAIT Group has acquired and is operating in compliance with international standards in four areas: quality management systems (ISO 9001), occupational health and safety management systems (ISO 45001), environmental management systems (ISO 14001), and information security management systems (ISMS) (ISO/IEC 27001).Since 2012, we have been operating the Integrated Management System that deals with the management systems of international standards in the four areas in an integrated manner.The Management System Policy we operate provides the basis of the Integrated Management System, requires all people involved in MIRAIT Group business activities to be aware of ESG, and clearly states that each company and department of the MIRAIT Group cooperate together to conduct PDCA management.Material issues (materialities)Building and Maintaining an Environmentally-Friendly SocietyERealization of a decarbonized society through business activitiesContribution to the creation of environmentally-friendly and resilient cities and villagesBuilding and Maintaining a Safe, Secure, and Prosperous SocietySafety and quality improvementCo-creation of social value through collaboration with partnersPromotion of human resource development, workstyle reform, and health-oriented managementRespect for human rights and promotion of diversity and inclusionBuilding and Maintaining a Fair and Transparent Corporate GroupSGEnhancing corporate governanceThorough complianceThorough risk managementBuilding and Maintaining a Culture Where People Respect Diverse Human Resources and Learn from Each OtherInformation securityISO/IEC 27001IntegratedManagementSystemOccupational health and safetyISO 45001QualityISO 9001EnvironmentISO 1400115MIRAIT GroupIntegrated report 202116ESGEnvironmentBuilding and Maintaining an Environmentally-Friendly SocietyRealization of a decarbonized society through business activitiesWe aim to realize a decarbonized society by constructing, operating, and maintaining more efficient social infrastructures and advanced energy-related systems, as well as supplying renewable energy as our own business.Businesses to Serve Environmental ProtectionEnvironmental ManagementDirect and Indirect ContributionsWe contribute directly to creating energy infrastructure needed for a low-carbon society through design, construction, operation and maintenance of power generators that utilize renewable energy (especially solar power), installation and maintenance of LED lighting, installation and maintenance of EV charging stations, and provision of energy management systems and battery systems.We are also taking an active part in initiatives toward realizing high-efficiency smart energy systems and smart cities, by such approaches as developing broadband wireless sensor network systems and next-generation mobility.Stable Supply of Renewable EnergyOne of the social infrastructures that the MIRAIT Group is building is equipment and systems for widely spreading renewable energy.Local governments have been implementing projects to support the joint purchase of solar power and storage battery systems since fiscal 2019 in order to further expand the use of renewable energy in general households. In Kyoto City, which aims to achieve net zero CO2 emissions by 2050, our group company COTONET ENGINEERING Co., Ltd. has been selected as the sales and installation company to provide solar power and storage battery systems to the city’s residents. Also in Osaka Prefecture, MIRAIT Technologies Corporation has been selected as a sales and installation company for storage battery systems. As well, MIRAIT Corporation, together with ENNET Corporation and CCD Co., Ltd., conducted a verification test for the interchange of surplus electric power to users in the local community by utilizing solar power generation and electric vehicles (EV) over a one-year period starting at the end of March 2020. We installed solar power generation equipment and an EV power conditioner at a conventional energy-saving residence in Karuizawa-machi, Kitasaku-gun, Nagano. Electricity from solar power generation was used at home, and the surplus was charged in EVs, which then supplied electricity to the docomo Shop Karuizawa during designated evening hours.We will also contribute to ensuring the stable supply of renewable energy, a challenge to be addressed, so that it can be readily used in more situations.Companies in the MIRAIT Group operate in compliance with environmental management system standards (ISO 14001) (MIRAIT Corporation and MIRAIT Technologies Corporation are certified at all of their business locations).At each business location, environmental aspects of our operations are identified and impacts are assessed. We then design steps to manage material environmental aspects, formulate action plans for each fiscal year, review progress to find the results and challenges, informing continuous improvement.We conduct regular audits. One internal and one external audit are held once a year at our business base with ISO 14001 certification.Over the seven years from 2014 to 2020, the number of our violation of environmental laws, accidents or pollution that would cause environmental problems, and environmental complaints were all zero (at the domestic group companies).Sharing ResultsWe aggregate actual values of our main performance indicators for environmental protection activities (CO2 emission, electricity consumption, consumption of fuels such as gasoline and kerosene, emission of paper waste, household waste and industrial waste, and green purchasing payments) and monitor and analyze them to promote our activities.In summer and winter when electricity consumption increases, each workplace sets its own targets and works to reduce electricity use.Mitigating Climate ChangeSaving and Creating Energy at Construction CentersAt local construction centers, we have been installing LED lighting, demand monitoring systems for power consumption, and rooftop solar power generators, promoting energy conservation.Annual electrical power output of solar power generators at 5 offices of MIRAIT CorporationFY 2017FY 2018FY 2019124138132(thousand kWh)FY 2020137Promoting Power SavingMost of the energy consumed in offices is electricity. The MIRAIT Group is making unified efforts to promote power saving through multifaceted approaches: more efficient use and reduction of printers Comprehensive Environmental Protection MeasuresGreen Development GuidelinesSince FY 2016, the MIRAIT Group has established Green Product Development Guidelines compiling the points that should be considered from the product design and development stage with the preservation of the global environment in mind. During development, while both observing related laws and ordinances, we also consider environmental effects over the life cycle of the construction method, product, or service.Environmental Standards for Evaluating and Selecting Business PartnersIn evaluating and selecting business partners, the MIRAIT Group considers their approaches to ESG. We ask about environmental considerations (promotion systems, chemical substance management, CO2 emission reduction, and industrial waste reduction) as a basis for our decision (see p. 35).Green PurchasingWe purchase office supplies and paper based on the recommendations of GPN* green purchasing guidelines as much as practicable. The green purchasing ratios for MIRAIT Corporation and MIRAIT Technologies Corporation were 82.9% and 81.1% respectively in FY 2020.*A list of items (per product category) to consider from environmental viewpoints upon making purchasing decisions, prepared by the GPN (Green Purchasing Network).Biodiversity ConservationRural Area and Neighborhood (Satoyama) Conservation ActivitiesSince 2003, we have participated in satoyama conservation activities organized by the Osaka Green Trust, recruiting volunteers both internally and from partner companies. In FY 2019, we joined pruning and thinning in the Kurumatsukuri Forest of Ibaraki City in metropolitan Osaka as in the previous year to restore and maintain its favorable conditions. We worked to conserve nature and biodiversity and create green and pleasant environments.and copy machines; power-saving settings of PCs; proper indoor temperature control; switching off unnecessary lighting; and education for controlling elevator use.Improving Fuel-efficiency of VehiclesWe work to raise company-wide awareness and energy efficiency by introducing low-emission, fuel-efficient vehicles, and by encouraging eco-driving for less environmental impacts and fewer traffic accidents.Company car with an Eco-Drive StickerContributing to Circular SocietyRecycling of Construction By-productsWe continuously work to minimize the volume of construction by-products that occur at each construction site and to discover ways to recycle by-products that do occur. As part of that effort, we switched from wooden drums on which steel stranded wire is wound and disposed of after one use to a reusable ECO drum – part of a telecommunications construction industry program – starting in 2008 and, except for a few sizes, use only ECO drums.ECO drumsPromoting Recycling Construction Spent ProductsWe promote recycling by collecting uniforms and helmets after they have been used and using a thermal processing (used as heat) by contracting a specialized company.Reducing Paper UseWe are promoting paperless meetings and standardizing procedures for using multifunction devices that eliminate wastefulness.17Work in the Kurumatsukuri ForestMIRAIT GroupIntegrated report 202118ESGEnvironmentBuilding and Maintaining an Environmentally-Friendly SocietyContribution to the creation of environmentally-friendly and resilient cities and villagesWe will contribute to the creation of sustainable cities and villages through the construction of environmentally-friendly and resilient social infrastructure that makes full use of the MIRAIT Group’s technologies in a wide range of areas, including IoT, 5G, ICT, and energy systems.faced a lot of difficulties due to considerations for tourists and sudden changes in weather, typical to mountainous areas, but was able to complete the project with high quality and without any accidents. The company is contributing to the construction of infrastructure for mitigating disasters caused by volcanic eruptions.Disaster Response Using Drone TechnologyOn July 1, 2020, we concluded an “Agreement on Cooperation for Assistance Using Unmanned Aircraft in Times of Disaster” with Koto Ward, Tokyo. Upon request from Koto Ward in the event of a disaster, MIRAIT Technologies Corporation and MiratecDrone Corp. will be dispatched to inspect civil engineering facilities in the ward.In addition, after the mudslide disaster that occurred in Atami City, Shizuoka Prefecture in July 2021, MiratecDrone Corp. provided technical guidance on drone photography to members of TEC-FORCE, the Ministry of Land, Infrastructure, Transport and Tourism. After the mudslide disaster, MiratecDrone created orthoimages using burst shots taken by a drone from the headwaters of the Aizome River to the midstream erosion control dam, and provided them to TEC-FORCE, the Ministry of Land, Infrastructure, Transport and Tourism.With MiratecDrone taking the lead, the MIRAIT Group will work on faster, more sophisticated and safer survey techniques.Minimizing the Impact of Disasters and AccidentsRecovery response in the event of a disaster or accident is an important role of the MIRAIT Group as a safeguard for the communications and network environment.We conducted recovery activities for communication infrastructures in various regions damaged by Typhoon No. 10 in July 2020 and Typhoons No. 15 and No. 19 in September and October 2019.Creating Information and Communication Infrastructures That Can Withstand Natural DisastersThe proper functioning of information and communication networks is essential for the daily lives of the people and for industrial and economic activities. The MIRAIT Group has consistently been committed to the construction and operation of information and communication infrastructures that can withstand natural disasters, including wind, flood, and earthquakes.In recent years, we have also worked to prevent the collapse of utility poles due to earthquakes and typhoons by undergrounding electric cables. We excavate the road and bury conduits to accommodate electric cables, while paying attention to water, sewage, and gas pipes. The MIRAIT Corporation carried out a project to eliminate utility poles in Ponto-cho, a representative scenic area of Kyoto. Considering the narrow alley, the company used a new construction method (small box method ) for the first time in Japan. This new method can be implemented at a lower cost and in a shorter period of time than conventional methods, and many local governments, including the Tokyo Metropolitan Government, have visited the site.In the construction of a volcanic eruption monitoring system for Mt. Zao, a quasi-national park located on the border of Miyagi and Yamagata prefectures, TTK Co., Ltd. laid underground condui