Message from the CEO Message from the CEO

Promoting the Medium-Term Management Plan as a period to carry out investments and further accelerate efforts to raise awareness of our Purpose

The previous Medium-Term Management Plan period created a foundation for future growth after passing a significant milestone in our development

The previous Medium-Term Management Plan (here-inafter, the Previous Plan) was atypical, covering four years rather than the usual three-year period. During this time, we were faced with a cascade of events that were hugely significant to the Group.
　Foremost among these was the 50th anniversary of the Company’s founding on September 21, 2022. MIRARTH started off as a small construction firm and went on to enjoy constant growth in pursuit of the creation of “affordable housing that anyone can buy with confidence and peace of mind.” In all our endeavors, we have demonstrated a strong capability to maintain a feeling of speed and generate ideas that go beyond the conventional, all while being supported by an integrated system that covers development, planning, sales, and management.
　In addition, in October of the same year we marked our shift to a holdings structure by changing the name of the Company to “MIRARTH HOLDINGS.”
　This change followed two years of discussion on the course the Group should take as it moved on to the next stage. The passage of this 50-year turning point was accompanied by a restructuring of the Group, and we came through it with the strong conviction that we had taken the correct course toward a new stage of growth.
　The new Purpose that was formulated during the development of the new MIRARTH HOLDINGS Group structure is “To design sustainable environments for a happier future for both people and our planet.”
　We seek to go beyond the framework of a general real estate developer and evolve into a “future environment design company” that works alongside local communities to co-create the towns of the future.
　To encourage our employees to embody our Purpose, we also formulated a long-term vision for 2030—“Be the Takara (treasure) of the Community”—in October 2023. Through the initiatives launched in line with this vision, we began working to deepen understanding of the Purpose within the Group. Since the initial “Declaration Period” following the announcement of the vision, we have transitioned to the “Comprehension Period,” a phase with a focus on employees and, even as we work to further accelerate employee understanding, we are moving toward the next phase, the “Raising Awareness Period.” We have seen a growing trend among employees toward actualizing these goals, as well as the Long-Term Vision, through the roles they play in the Company and during their daily work. In the nationwide expansion of our condominium business, for example, we are seeing employees create condominiums that contribute to the resolution of local issues. It will take a little more time to provide specific examples of results, but our employees have established deep roots in communities and I can feel their consistent passion as they take action. I would be gratified if expectations for us remained high until the day that these initiatives bear fruit.

What does it mean to “Be the Takara (treasure) of the Community”? Here are examples from the six Tohoku prefectures.

Since January of 2015, our town creation efforts across the Tohoku area have involved the supply of residences with a high degree of design sense in line with the pursuit of “Beauty in Architecture” alongside residences furnished with comfort and safety, or “Beauty in Function,” in mind. Our first expansion into this market was in Aomori Prefecture in April 2021, and we have since expanded our development of condominiums to all six of the prefectures in the Tohoku region.
　The city of Sendai is a central location where largescale general developers typically seek to supply condominiums. However, the Group has consistently carried out development in the region in response to actual demand, which has taken it to the prefecture’s third- and fourth-largest cities, where the supply of condominiums had been stalled for several years.
　We have placed particular focus on resolving the serious issues that the Tohoku region faces. Specific issues include a hollowing out of city centers as populations age or shrink and the physical burden upon residents from rooftop snow removal in the winter. In response to these issues, we have ensured that condominiums are designed with infallible measures to protect against damage from excessive snowfalls and have also promoted “downtown living” alongside public and private entities as well as landowners to create developments that produce a new sense of liveliness in cities.
　As a result, we have secured the No. 1 ranking for highest amount of new built-for-sale condominiums provided to the Tohoku region in nine of the ten years since we began doing so in 2015. We view this continuous provision of housing to all six prefectures as a point of great strength for the Group. Furthermore, this can be said to be testament to the success of our community issue-centered approach to various regional housing businesses.

Issues identified during the formulation of the new Medium-Term Management Plan

Since its founding, over half of the Group’s net sales have been attributable to the Real Estate Business. Despite being simply referred to as “real estate,” this segment encompasses a wide range of business fields, including such tangible ones as new built-for-sale condominiums, offices, residences, and detached houses, as well as those that are involving less tangible sources of income, including rentals, brokerage and other agency services, management, and maintenance. The Real Estate Business as a whole thus leads us down a route that continues to produce growth and is reliable. In particular, the core of growth in the Group’s net sales since its founding has always been its new built-for-sale condominium business. 10 years ago, over 90% of net sales were in fact attributable to this business. However, the 2008 financial crisis increased our awareness of the risks concentrated around this business, and we began to actively expand our other real estate businesses. As a result, new built-for-sale condominiums now comprise around half of the Group’s net sales. So, even though recent sales in the new built-for-sale condominiums business have nearly doubled, their overall share of net sales has shrunk due to large expansions in other real estate businesses. With the understanding that such initiatives bring uniform success to the Real Estate Business as a whole, we have set further growth in the Real Estate Segment as an essential point in the new Medium-Term Management Plan (hereinafter, the New Plan).
　On the other hand, the Energy Business began as a way to increase added value by installing solar panels on the roofs of new built-for-sale condominiums. It was not until 2013 that we began treating it as a full-fledged business. In 2016, the Takara Leben Infrastructure Fund became the first such fund to be put on the Japanese stock market. Following this, we have continued to acquire buildings, and our asset holdings have expanded in scale to around ¥60 billion. However, this business does more than just develop solar power plants as simple financial products and sell energy facilities to funds as a liquidation business. To turn it into an actual energy business, we completed a take-over bid (TOB) for the Takara Leben Infrastructure Fund, which was effectively held by the Company, and transitioned it to a stock business centered on income from energy sales. Since completing the TOB in 2022, we have made plans for the future of the Energy Business and are set for it to grow as another essential part of the New Plan.　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　       The question is how to proceed with developing this business over the course of the next Medium-Term Management Plan and on a long-term basis. The “Transitional Period” prior to the TOB has now given way to an “Investment Period” under the New Plan. 
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Points of focus for the New Plan’s “Investment Period”

In the new built-for-sale condominium business, we are projecting sales of 2,820 units in FY2025, compared to 2,339 sold in the previous period. With the goal of ensuring a stable and continuous supply of new built-forsale condominiums, the plan targets stable annual sales of around 2,200 units. As of the date of this publication, the number of units sold in the current period, excluding joint ventures (JV), is 2,150.
　The factors that led to the formulation of the above goals include surges in building construction costs and the trend toward prolonged construction periods. As a result of these periods lengthening due to regulations on the upper limit of overtime hours and a severe labor shortage, investment return cycles have also lengthened.
　Regarding the pressure being exerted by rising costs, we are further strengthening initiatives involving land procurement, carefully selecting locations where customer needs are high and we can create high added value. We also thoroughly enforce cost controls in close collaboration with building companies with the aim of attaining gross profit margins at estimated levels.
　However, to mitigate risks arising from the expansion of our balance sheet due to longer construction periods, we carefully select high-quality land and align our strong product planning and sales capabilities to promote development businesses alongside our partner companies’ businesses. By doing so, we can continue to secure initial profits while maintaining sound management. For our partner companies, working with us allows them to enjoy such positives as easier access to permits and licenses related to development and mitigating risks associated with longer construction periods. We believe the consistent trust in the Group’s performance is evidence of the positive effects of these partnerships.
　We believe that prices of new built-for-sale condominiums will not fall for the time being due to strong demand and the trend toward prolonged construction periods due to higher costs during the building process. By making careful selections to acquire quality land and taking into account market conditions, we believe that stable development is possible. Similarly, there has been a shift in the source of profits from the liquidation of real estate away from development, which formerly accounted for 70%, to existing buildings. This means that we must now acquire existing buildings, raise their value through renovation, and sell them off. Over the three years covered by the New Plan, we will invest a large amount into the process of liquidation to drive growth in the Real Estate Segment.
　The Energy Business will continue to see high demand for renewable energy as corporate decarbonization gains momentum. The Group has developed relatively compact solar power plants with a capacity of less than 1 MW and is selling energy to off-takers. We utilize the network that we have cultivated as a real estate company to constantly acquire information on land best suited for the installation of solar panels. Furthermore, our energy storage site business is an indispensable element for maximizing the value of solar power plants. In this business, we implement initiatives to jointly use stores of daily surplus energy when there is a shortage, as such stores can be used to compensate for the instability of solar power. These vital initiatives help balance energy supply and demand.
　Furthermore, we are also developing our businesses overseas. In Cambodia, we have launched a biomass fuel project using cashew nutshells as a raw material. The nuts are processed, with the shells turned into oil and the leftover residue used as a fuel for biomass power generation. This business has turned the waste of a local specialty, cashews, into a domestic industry in Cambodia, and we believe it has great potential to contribute in various ways, for example, by bringing employment and by providing its own energy supply.
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To our stakeholders

The MIRARTH HOLDINGS Group has seen constant growth thanks to our strong capabilities driven by a sense of urgency and supported by an integrated system along with the capability to generate ideas that go beyond the conventional.
　We believe that the realization of our Purpose will be the driving force allowing us to achieve further development as a “future environment design company.” I believe it is important that the Group clearly state its Purpose—how it faces society—in a public manner. We must tell the world the kind of future we expect to bring about by centering ourselves around our Purpose. From a sustainability perspective, we are striving to bring a happy future to both people and our planet through real estate and energy, and I would like to help ensure this goal becomes a reality. Accordingly, we are cultivating expertise in each of our businesses so that they will evolve into pillars that support profit stability into the future. Also, it is necessary to employ individuals with diverse mindsets to constantly create new businesses. We will continue to make serious efforts to increase our corporate value based on our Purpose of building a happier future for both people and our planet, and I would like to ask for your continued support in this endeavor.

October 2025