August 8, 2024

COMSYS Holdings Corporation
Consolidated Financial Results for the First Quarter Ended June 30, 2024
Under Japanese GAAP
Head Office:17-1, Higashigotanda 2-chome, Shinagawa-ku, Tokyo 141-8647, Japan
Stock Exchange Listings: Prime Market of Tokyo Stock Exchange (Securities code: 1721)
URL:
https://www.comsys-hd.co.jp
Representative:
Hiroshi Tanabe, President and Representative Director
For Inquiry:
Toru Mashimo, Director and General Manager of Financial Department (Telephone:81-3-3448-7000)
Scheduled Commencement of Dividend Payment: —Supplementary Materials on Quarterly Results:
Attached
IR Presentation on Quarterly Results:
Not scheduled
Amounts less than one million yen have been omitted.

1. Consolidated Financial Results (for the three months ended June 30, 2024)(1) Consolidated Operating Results(Millions of yen, except per share data and percentages)

Net Sales

Operating Profit

Ordinary Profit

Profit Attributable to
Owners of Parent

Three months ended June 30, 2024

¥125,10812.9%¥7,101

52.7%¥7,72847.5%¥4,578

41.6%

Three months ended June 30, 2023

110,769

3.1

4,651

30.6

5,237

23.2

3,234

20.1

Notes: 1. Comprehensive income: Three months ended June 30, 2024: ¥3,945 million [(19.7)%] Three months ended June 30, 2023: ¥4,913 million [57.8%]
2. Percentages indicate the percentage change from the corresponding period of the previous fiscal year.

Primary Earnings per Share

Diluted Earnings per ShareThree months ended June 30, 2024

¥38.36¥38.26

Three months ended June 30, 2023

26.80

26.78

(2) Consolidated Financial Position(Millions of yen, except percentages)

Total Assets

Net Assets

Equity Ratio

As of June 30, 2024

¥490,417¥364,842

73.1%

As of March 31, 2024

514,647

368,055

70.3(Reference) Shareholders’ Equity:

As of June 30, 2024: ¥358,391 million

As of March 31, 2024: ¥361,944 million

2. Cash Dividends for Shareholders of Common Stock(Yen)

Cash Dividends per Share over the Fiscal YearEnd of 1st QuarterEnd of 2nd QuarterEnd of 3rd Quarter

Year ended March 31, 2024

¥ —¥50.00¥ —¥55.00¥105.00

Year ending March 31, 2025

—
55.00

—

55.00

110.00Year ending March 31, 2025 (Forecast)Year-End

AnnualNote: Most recently announced revisions to dividend forecast: No

3. Consolidated Earnings Forecast (for the fiscal year ending March 31, 2025)
Net SalesYear ending March 31, 2025

¥600,000

5.0%

Operating Profit¥40,000

2.0%(Millions of yen, except per share data and percentages)

Ordinary Profit¥40,500

Notes: 1. Most recently announced revisions to consolidated earnings forecast: No
2. For fiscal-year figures, percentages indicate the percentage change from the previous fiscal year.

0.3%

Profit Attributable to Primary Earnings
Owners of Parent
per Share¥27,000(1.7)%¥226.17

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the First Quarter Ended June 30, 2024

*Notes:(1) Significant changes in scope of consolidation during the period under review: Yes
Newly consolidated: Nil, (Company name)
Excluded from consolidation: Two companies (Company name) Hamamatsu NDS Co., Ltd., CaN-TEC Co., Ltd.

(2) Adoption of accounting methods specific to quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates and restatements of prior period financial statements
due to error correctiona) Changes in accounting policies due to revisions of accounting standards: Yesb) Changes in accounting policies due to other reasons: Noc) Changes in accounting estimates: Nod) Restatements of prior period financial statements due to error correction: No(4) Number of shares issued (common shares)
		a) Number of shares issued (including treasury shares)b) Number of treasury shares		c) Average number of shares issued in the period

As of June 30, 2024
133,000,000 shares
13,803,018 shares

As of March 31, 2024
133,000,000 shares
13,622,197 shares

Three months ended June 30, 2024
119,378,838 shares

Three months ended June 30, 2023
120,677,824 shares*Review of attached quarterly consolidated financial statements by certified public accountants or an audit corporation: Yes(Voluntary, in Japanese only)*Disclaimer concerning the Proper Use of Business Results Forecasts and Other Relevant Specific Items
Forward-looking statements including earnings forecasts contained in this document are based on certain reasonable assumptions and beliefs inlight of information currently available to management. Readers are advised that actual results may differ materially from forecasts due to a variety
of factors. With respect to the conditions that underpin earnings forecasts as well as cautionary statements regarding the proper use of earnings
forecasts, please refer to “(3) Discussion of Forward-Looking Information, including Consolidated Earnings Forecasts” under “1. Business Review”
of this Consolidated Financial Results report in the Accompanying Materials section on page 3.

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COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the First Quarter Ended June 30, 2024

Accompanying Materials
1. Business Review(1) Overview of Operating Results for the Period under Review
During the cumulative first quarter period (April 1, 2024 to June 30, 2024) of the current fiscal year ending March 31,
2025, as COVID-19 became a Category V infectious disease, the Japanese economy was expected to maintain a moderate
recovery, amid normalization of social and economic activity owing to a recovery in personal consumption due to inboundtourism demand and rising share prices. Nevertheless, it was necessary to continue monitoring soaring prices for energy andraw materials, the global situation, including Ukraine and the Middles East, and turbulence in financial and capital markets.
As for the business environment surrounding the COMSYS Group, in the communications infrastructure field, thetotal volume of work has declined in the past few years due to the impact of shrinking demand for new optic fiber lines andcurbing of investment by mobile telecommunications carriers. On the other hand, there have been efforts to improve thequality of communication in overcrowded urban areas impacted by the increase in mobile communications traffic. In
addition, development of new infrastructure for the diffusion of 5G (extremely high frequency Sub-6 GHz) has been directed
toward expanding digital business through wireless services. In the medium term, the NTT Group and othertelecommunications carriers are expected to invest in developing next-generation communication infrastructure(commercialization of IOWN, 6G, etc.).
In the IT Solutions field, the market overall continued to expand. Over the past few years, the construction of datacollaboration platforms has been promoted in sectors including government and education, as well as healthcare, disasterprevention and other areas, in order to solve local issues using digital technology.
In the social infrastructure field, demand for construction of data centers and interconnection of data centers grew.
On top of this, developments related to disaster prevention or mitigation and national resilience measures were promoted toaddress increasingly severe and frequent natural disasters. The National Spatial Strategy calls for the development of greater
complexity, multi-functionality, and maximization of effectiveness of infrastructure by combining the hard functions ofinfrastructure with soft measures that utilize ICT technologies. Similar efforts were promoted under the TOKYO Resilience
Project, the disaster preparedness plan for Tokyo. Also, Green Transformation (GX) growth investment in the renewableenergy sector is anticipated, with a view to achieving carbon neutrality by 2050.
The COMSYS Group faced a challenging business environment in the telecom-carrier field, including a decline inmobile-related work. In these circumstances, the COMSYS Group worked to improve communication quality, mainly in theTokyo metropolitan area, to expand peripheral business, taking maximum advantage of the strengths of regional brands, toenhance sales capabilities in order to acquire new customers in the infra-sharing business and other areas. The Group alsosought to strengthen its business foundation, by, for instance, working toward Group-wide optimization (strengthening of its
area management system and integrated management of the access and mobile-related businesses). In addition, the Groupmade concerted efforts to restore communications facilities damaged in the 2024 Noto Peninsula Earthquake.
In the IT solutions field, the COMSYS Group will work to continually strengthen sales in order to win large-scaleorders by collaborating with alliance partners and will strive to strengthen project management performance in conjunction
with an increase in prime contractor projects. Going forward, the Group will aim to expand new business areas bystrengthening integrated management in the Tokyo metropolitan area, which is the biggest market for IT investment, shifting
resources to high-layer solutions in collaboration with telecom-carrier businesses, and providing full-layer solutions.
In the social system-related field, the COMSYS Group is working to expand the top line with the acquisition ofprojects for large-scale expressways and building electrical construction through Group collaboration, in addition to theconstruction of communication conduits between data centers using the horizontal directional drilling (HDD) method.
Going forward, the Group will continue working to expand orders for data centers, which remain solid, to develop promising
engineers throughout the Group, and to facilitate flexible mobility of human resources.
The COMSYS Group will continue working to strengthen its management foundation, for instance by improving
productivity utilizing DX and promoting more diverse and flexible workstyles. Moreover, in the area of sustainability
initiatives, the Group will continue working actively to reduce greenhouse gas emissions and will contribute to the realizationof the society envisioned by the SDGs, while striving for the sustainable growth of the COMSYS Group.
Under these circumstances, orders received in the first quarter period increased 15.7% year on year to¥177,978 million, and net sales increased 12.9% year on year to ¥125,108 million. From a profit perspective, operating
profit increased by 52.7% year on year to ¥7,101 million, while profit attributable to owners of parent increased 41.6%
year on year to ¥4,578 million.
3

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the First Quarter Ended June 30, 2024

(2) Overview of Financial Position for the Period under Review
Total assets as of June 30, 2024 amounted to ¥490,417 million, down ¥24,229 million compared with the end of the previous
fiscal year. This was mainly attributable to a decrease in notes receivable, accounts receivable from completed construction
and other. Liabilities decreased by ¥21,016 million compared with the end of the previous fiscal year, to ¥125,574 million.
This was largely attributable to a decrease in notes payable, accounts payable for construction contracts and other.
Net assets decreased by ¥3,212 million compared with the end of the previous fiscal year, to ¥364,842 million. Thiswas primarily attributable to payment of dividends from retained earnings.
(3) Discussion of Forward-Looking Information, Including Consolidated Earnings Forecasts
There are no changes in the consolidated earnings forecast for the full fiscal year ending March 31, 2025 published in“COMSYS Holdings Announces Revision to Earnings Forecast” dated May 10, 2024.

4

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the First Quarter Ended June 30, 2024

2. Quarterly Consolidated Financial Statements(1) Consolidated Balance Sheets
Millions of yen
As of March 31, 2024

ASSETS
		 Current assets:
			 Cash and deposits
52,500			 Notes receivable, accounts receivable			from completed construction contracts and other
177,266
			 Costs on construction contracts in progress
43,183
			 Other inventories
6,009
			 Other current assets
23,523
			 Allowance for doubtful accounts(136)
			 Total current assets
302,347
		 Non-current assets:
			 Property, plant and equipment:				 Buildings and structures, net
45,989				 Land
76,409				 Other, net
25,012				 Total property, plant and equipment
147,410
			 Intangible assets						 Goodwill
568				 Other intangible assets
5,251				 Total intangible assets
5,820
			 Investments and other assets:				 Investment securities
32,939				 Other assets
28,994				 Allowance for doubtful accounts(2,864)				 Total investments and other assets
59,069
			 Total non-current assets
212,300
		 Total assets
514,647

5

As of June 30, 2024

81,954
121,774
45,353
6,187
25,031(119)
280,181

45,53476,40925,185
147,128
320
5,065
5,386
31,44329,143(2,865)57,720210,235
490,417

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the First Quarter Ended June 30, 2024

Millions of yen

LIABILITIES		 Current liabilities:
			 Notes payable, accounts payable			for construction contracts and other			 Short-term borrowings
			 Income taxes payable			 Advances received on construction contracts in progress			 Allowances
			 Other current liabilities
			 Total current liabilities
		 Non-current liabilities:
			 Long-term borrowings
			 Deferred tax liabilities for land revaluation
			 Retirement benefit liability
			 Provision for retirement benefits for directors (and other officers)
			 Provision for environmental measures
			 Other long-term liabilities
			 Total non-current liabilities
		 Total liabilities
NET ASSETS
		 Shareholders’ equity:
			 Share capital			 Capital surplus
			 Retained earnings
			 Treasury shares
			 Total shareholders’ equity
		 Accumulated other comprehensive income:			 Valuation difference on available-for-sale securities
			 Deferred gains or losses on hedges
			 Revaluation reserve for land
			 Remeasurements of defined benefit plans
			 Total accumulated other comprehensive income
		 Share acquisition rights
		 Non-controlling interests
		 Total net assets
Total liabilities and net assets

6

As of March 31, 2024

As of June 30, 2024

77,250
3,984
6,463
8,263
216
28,148124,327

63,010
3,966
2,590
8,574
196
25,539103,87970
1,213
13,165
615
400
6,799
22,263
146,591

48
1,213
13,309
539
400
6,185
21,695125,574

10,00075,304300,918(31,857)
354,364

10,00075,367
298,931(32,478)
351,8209,119
1(7,303)
5,762
7,580
1,029
5,081
368,055
514,647

8,248
3(7,303)
5,623
6,571
1,010
5,440
364,842
490,417

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the First Quarter Ended June 30, 2024

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income		Millions of yen
Three months ended		Three months ended
June 30, 2023		
June 30, 2024

Net sales
Cost of sales
Gross profits
Selling, general and administrative expenses
Operating profit
Non-operating income:		 Interest income
		 Dividend income
		 Rental income from non-current assets
		 Other		 Total non-operating income
Non-operating expenses:
		 Interest expenses
		 Rent expenses
		 Depreciation of idle assets
		 Other		 Total non-operating expenses
Ordinary profit
Extraordinary income:		 Gain on sales of non-current assets
		 Gain on sales of investment securities
		 Gain on reversal of share acquisition rights
		 Other		 Total extraordinary income
Extraordinary losses:
		 Loss on retirement of non-current assets
		 Retirement benefit expenses
		 Business structure reform expenses
		 Special retirement expenses
		 Other		 Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

7

110,769
96,871
13,8989,247
4,651

125,108
108,615
16,493
9,391
7,101

4
450
73
137
666

2
495
74
111
683

4
20
19
34
79
5,237

5
14
13
23
56
7,728

19
6
5
0
32

2
5
5
2
15

15
—
13
102
4
136
5,133
1,890
3,243
8
3,234

45
147
60
13
5
273
7,470
2,528
4,942
363
4,578

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the First Quarter Ended June 30, 2024

Consolidated Statements of Comprehensive Income
Millions of yen
Three months ended
Three months ended
June 30, 2023
June 30, 2024

ProfitOther comprehensive income:			 Valuation difference on available-for-sale securities
			 Deferred gains or losses on hedges
			 Remeasurements of defined benefit plans
			 Total other comprehensive income (loss)
Comprehensive income
		 (Breakdown)
			 Comprehensive income attributable to owners of parent
			 Comprehensive income attributable to non-controlling interests

8

3,243

4,942

1,571
83
15
1,670
4,913

(858)
1
(139)
(996)
3,945

4,897
16

3,569
375