Message from the CEO Message from the CEO

Further accelerating the penetration of purpose and promoting the medium-term management plan, which is positioned as a period for investment execution

The previous medium-term management plan period marked a major milestone and laid the foundation for future growth

The previous medium-term management plan (hereinafter referred to as the "Medium-term Management Plan") was an irregular four-year plan, but during this time, a series of very important events occurred for the Group.
The biggest milestone was the 50th anniversary of the company's founding on September 21, 2022. Since its inception in 1972 as a small construction shop, we have pursued "an ideal home that anyone can purchase without difficulty," and has grown with a sense of speed and unconventional ideas through an integrated system of development, planning, sales, and management.
In October 2022, the same time as the 50th anniversary, we changed our trade name to "MIRARTH HOLDINGS" and transitioned to a holding structure.
Regarding the transformation into a holding, we have been considering for more than two years what the Group should do to move on to the next stage. I was able to overlap this group reorganization with the milestone of the 50th anniversary, and I strongly felt that I had done what I wanted to do for a new stage of growth.
MIRARTH HOLDINGS The purpose (reson for existence) formulated at the time of the launch of the Group's new structure is "To design sustainable environments for a happier future for both people and our planet.".
It is a determination to evolve into a “future environment design company” that goes beyond the framework of a comprehensive real estate developer and co-creates with local communities and works on the development of the city of the future.
In order to support employees in realizing their purpose, in October 2023, we formulated our long-term vision for 2030, Be the Takara of the community.. Through these initiatives, our purpose has begun to permeate within the Group. The phase has shifted from the "declaration period" at the beginning of the announcement to the "understanding period" of employees, and we will further accelerate this trend and lead to the next "penetration period". Regarding the long-term vision, I feel that there is a growing momentum for employees to realize it in their respective roles and daily work. For example, through the nationwide expansion of the condominium business, we are practicing condominium creation that contributes to solving issues in each region. It will take a little longer to convey concrete results, but I feel every day that our employees are deeply rooted in the community and are working with enthusiasm. We hope that you will look forward to the day when this initiative will bear fruit.

What is "Be the Takara of the community."? Examples of practice in six Tohoku prefectures

Since January 2015, the Group has been working to develop the city of the Tohoku area by providing homes that pursue architectural beauty with enhanced design and functional beauty with comfort and safety. In April 2021, we entered Aomori Prefecture for the first time and began to develop condominiums for sale in all six Tohoku prefectures.
In many cases, the supply of condominiums for sale by major general developers is mainly in Sendai City. On the other hand, the Group is committed to developing to meet the actual demand of local areas, so we may work on the third and fourth cities in the prefecture where the supply of condominiums has been cut off for several years.
In particular, we placed particular emphasis on solving the urgent issues facing the Tohoku region. Specifically, it is the hollowing out of the central urban area due to aging and population decline, and the burden of snow removal from roofs in winter. In response to these issues, we are working on development that creates a new liveliness in the city by taking all measures against snow damage in the specifications of condominiums, and by promoting "living in the city" by working together with the public, private, and landowners.
As a result, it has ranked first in the Tohoku area New built-for-sale condominium number of units supplied nine times in the 10 years since 2015. We are proud that this continuous supply in all six prefectures is a major strength unique to the Group. This is proof that each region is firmly facing regional issues through housing projects.

What are the issues recognized in formulating the new medium-term management plan?

For a long time since our founding, the Group has been Real Estate Business accounting for the majority of sales. In a word, real estate currently has a wide range of areas, from the hardware aspects such as New built-for-sale condominium, offices, residences, and detached houses to the soft aspects such as rental, brokerage, management, and maintenance. Real Estate Business The path to continue growing alone is one of the sure paths. In particular, since its founding, the Group has made the New built-for-sale condominium business the cornerstone of its growth, and 10 years ago, it accounted for more than 90% of sales. However, since experiencing the Lehman shock, we have recognized the risks of this business bias and have been actively working to expand other Real Estate Business. As a result, the New built-for-sale condominium business accounted for approximately 50% of the Group's overall sales. During this period, sales in the New built-for-sale condominium business have nearly doubled, but the ratio has decreased due to significant expansion in other Real Estate Business. In light of the fact that Real Estate Business 's overall efforts have achieved certain results, one of the key aspects of the new medium-term management plan (hereinafter referred to as the "New Medium-Term Management Plan") is how to grow the real estate segment.
On the other hand, Energy Business was initially positioned to increase added value by installing solar panels on the rooftop of the New built-for-sale condominium, but it started in earnest as a business in 2013. In 2016, we listed Takara Leben Infrastructure Fund, Inc., the first listed infrastructure fund in Japan. Since then, by continuously acquiring properties, we have been able to expand our asset size to the 60 billion yen range. That said, this is just a "Liquidation business of energy facilities" that develops solar power plants as mere financial instruments and sells them to funds. In order to make this a Energy Business in name and reality, the investment corporation was effectively owned by the company through a tender offer (hereinafter referred to as "TOB") and converted into a stock business centered on the proceeds from the sale of electricity generated. After this 2022 TOB, how to envision and grow the future of Energy Business will be another key part of the new medium-term plan.
How to extend Energy Business to the next medium-term management plan and even longer-term - If the period before TOB is considered a "period of change," the period of the new medium-term management plan is positioned as the "investment execution period."

Key points of focus in the "investment execution period" of the new mid-term management plan

New built-for-sale condominium In the business, we expect sales of 2,820 units in the fiscal year ending March 2026, compared to 2,339 units in the previous fiscal year. In the future, the number of units sold by New built-for-sale condominium is planned to be around 2,200 units, with the goal of a stable and continuous supply. The number of units in the current fiscal year is also 2,150, excluding joint ventures (JVs).
Behind this outlook is the soaring construction costs and the prolonged construction period. As a result of the extension of construction periods against the backdrop of upper limit regulations on overtime work and severe labor shortages, the fund recovery cycle is also increasing.
In response to these upward cost pressures, we are further strengthening our efforts to carefully select land purchases in locations with high customer needs and high added value, and we aim to secure expected gross profit margins by thoroughly controlling costs in close cooperation with construction companies.
On the other hand, in order to reduce the risk of balance sheet bloat due to prolonged construction periods, we carefully select high-quality sites, combine our strengths in product planning and sales, and jointly promote development projects with partner companies. This ensures that we maintain the soundness of our management while securing upfront profits. For partner companies, this has the advantage of reducing the risk of prolonging the construction period and permits associated with development projects, and we are proud that we have a certain level of trust in the Group's track record.
In the future, due to strong demand and the extended construction period due to high construction costs, the selling price of New built-for-sale condominium is not expected to decrease for the time being. By carefully selecting and acquiring a good location after carefully assessing the market, we expect that the Group will be able to develop its business stably. Similarly, in the Liquidation of profitable real estate, 70% of the real estate was previously developmental, but now it has shifted to the existing type. It is a style of acquiring existing properties, renovating them, increasing their value, and selling them. During the three years of the new medium-term management plan, we will invest heavily in this Liquidation to drive growth in the real estate segment.
In Energy Business, the demand for renewable energy for companies to decarbonize will continue to be very strong. The Group has developed relatively compact solar power plants with a capacity of less than 1 MW and sold electricity to offtakers. We always obtain land information suitable for solar panel installation, making full use of the rich network we have cultivated as a real estate company. In addition, the energy storage business is essential to maximizing the value of solar power generation. This is because in balancing the supply and demand of electricity, it is important to compensate for the instability of solar power generation, store surplus electricity on a daily basis, and use the stored electricity in times of shortage.
We also have overseas business. In Cambodia, we have started a biomass fuel conversion project using cashew nut shells as a raw material. It processes cashew nuts, turns the remaining shells into oil, and uses the residue as fuel for biomass power generation. This project has great potential to lead to a multifaceted contribution by utilizing cashew nuts as a specialty product to create industries, jobs, and electricity self-sufficiency in Cambodia.
While steadily implementing the above growth strategy, we also position shareholder return as one of the most important issues in management. Our basic policy is to implement a growth-oriented use of cash and provide stable dividend returns. In the new medium-term management plan, we will raise the dividend payout ratio to 35~40% and implement stable and continuous dividends. In addition, from the second term onwards, the company plans to maintain a level of dividends of 21 yen per share in the first year.

To Our Stakeholders

MIRARTH HOLDINGS The Group has grown with a sense of speed through an integrated system and ideas that are not bound by common sense.
I believe that the driving force for further development as “future environment design company” in the future will be the realization of our purpose. I believe it is important to firmly convey the meaning of this raison d'être to society and to disseminate it to society. How to firmly put the purpose on the axis and connect it to the future? Through real estate and energy, we would like to thoroughly consider and put into practice the future happiness of people and the earth from a sustainable perspective. To do this, it is necessary for each business to pursue expertise and evolve into pillars that will support stable profits in the future, and for each employee to have diverse perspectives and constantly create new businesses. We will continue to sincerely strive to improve our corporate value based on our purpose of "making the future of people and the earth happy," so we look forward to your continued support.

October 2025