COMSYS VISIONNEXT STAGE 2023
Annual Report 2019
Fiscal Year Ended March 31, 2019

COMSYS Holdings Corporation

Contents

1

Profile2

President’s Message

5

Eight Integrated Business Groups

8

Business at a Glance

10

Review of Operations and Outlook
10 NTT Engineering Business
10 NCC Engineering Business
11 IT Solutions Business
11 Social System-Related Business

12

Topics13

Corporate Governance20

Corporate Social Responsibility (CSR)

21

Financial Statements*
21 Consolidated Balance Sheets
23 Consolidated Statements of Income
24 Consolidated Statements of Changes in Equity
26 Consolidated Statements of Cash Flows
27 Ten-Year Summary of Business Results and Financial Data

30

Information
30 Investor Information
31 COMSYS Holdings Information
How to Use

Cautionary Statement with Respect to Forward-Looking Statements
Statements made in this annual report with respect to COMSYS Holdings’ plans and benefits as well as otherTo Contents

statements that are not historical facts are forward-looking statements, which involve risks and uncertainties.
Potential risks and uncertainties include, without limitation, general economic conditions in COMSYS
Holdings’ markets, exchange rates, and COMSYS Holdings’ ability to continue to win customers’ acceptanceof its products, which are offered in highly competitive markets characterized by continual new productintroductions and rapid developments in technology.
* Compiled based on the content of COMSYS Holdings’ Annual Securities Report submitted in Japanese.

Left-click tabs at the right-hand edgeof the page to jump to the relevant
section.

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COMSYS Holdings Corporation Annual Report 2019

ProfileProfilecompany through share transfers from three companies—Nippon COMSYS Corporation, SANWA

President’s
Message

COMSYS Holdings Corporation (the “Company”) was established in September 2003 as a holding
ELEC Co., Ltd. (now SANWA COMSYS Engineering Corporation) and HIGASHI NIHON System

The COMSYS Group (the “Group”) consists of the Company and 89 subsidiaries and 18 affiliates,in addition to 8 core operating subsidiaries, specifically Nippon COMSYS Corporation, SANWASYSKEN Corporation, Hokuriku Denwa Kouji Co., Ltd. and COMSYS JOHO SYSTEM Corporation.

from carrier-related electrical and telecommunications facilities to ICT related facilities and social
system-related facilities, both of which have high growth potential. Social system-related businesses

Review ofOperations
and Outlook

The business domain of the COMSYS Group encompasses various construction businesses ranging

Business at a
GlanceCOMSYS Engineering Corporation, TOSYS Corporation, TSUKEN Corporation, NDS Co., Ltd.,

Eight Integrated
Business Groups

Construction Co., Ltd. (now TOSYS Corporation).

include improvement projects of urban environments, renewable energy projects such as solar
activities.

Corporate Social
Responsibility(CSR)

COMSYS Group Management Philosophy

Topics /Corporate
Governancepower, and various infrastructure projects which support the foundation of social and economic

Financial
Statements

We will contribute to our country and local communities bybuilding social infrastructure that supports affluent lifestyles.
We will continue with unrelenting reformin our aim to further increase corporate value.

To Contents

We will build a company that customers continue
to choose through the construction of diverse infrastructurethat carries our era forward.

Information

At the COMSYS Group, we are united as a Group andstrive for strong partnership and collaboration with diverse external players
in achieving our management philosophy.

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COMSYS Holdings Corporation Annual Report 2019

President’s Message

Create the Future throughContinuous Transformation

August 2019

Takashi Kagaya
President and Representative Director

Performance for the
FY ended March 2019consolidation. However, the operating profit ratio was 0.1
of a percentage point above target.

Looking at our performance for the FY ended March

The contract backlog rose to its highest-ever level of

2019, orders received were a record-high ¥505.5 billion,¥183.1 billion, up ¥23.5 billion year on year, due to aup ¥103.3 billion year on year, and net sales reached apositive impact from the business consolidation of the

new all-time high of ¥481.7 billion, an increase of

three companies, in addition to solid orders received.

¥101.7 billion. These results were primarily attributable
to consolidation of the three companies in thetelecommunications construction industry—NDS Co.,
Ltd., SYSKEN Corporation, and Hokuriku Denwa Kouji

Business environment surrounding the
COMSYS Group

Co., Ltd.—effective October 2018, as well as solid trends

In the information and communications field, thein orders received and net sales.

COMSYS Group’s principal area of activity, value-added

To Contents

On the profit front, following on from the previous fiscal

services such as content provisioning have beenyear, we continued to deliver record-high profits as we

expanding amid intensifying competition among

steadily completed a large volume of construction

telecommunications carriers over services. With the rapid

projects. Operating profit was ¥35.2 billion, up ¥4.9 billion

growth in higher-volume data traffic driven by theyear on year, and profit attributable to owners of parent

expansion of these services, mobile networks are being

was ¥28.0 billion.

upgraded to cope with the burgeoning data traffic.

The operating profit ratio decreased 0.7 of a percentage

Moreover, in the public and private sectors, social

point year on year to 7.3% due to the impact of theinfrastructure investment offers prospects for growth in3

COMSYS Holdings Corporation Annual Report 2019

Profilethrough disaster readiness and mitigation measures inare positioned as core businesses for growth, we will

preparation for increasingly severe natural disasters,

accelerate expansion in orders received and net sales bypolicies on renewable energy, and the 2020 Tokyo

promoting the virtual company system which is operated by

Olympic and Paralympic Games. Growth is also

aggregating the same business segments across operating

anticipated in ICT investments that harness newcompanies, including the three consolidated companies.

innovations, such as the Internet of Things (IoT) andBased on these factors, in our business plan for the FY
ending March 2020, we are targeting orders received ofArtificial Intelligence (AI).

net sales of ¥540.0 billion, an increase of ¥58.3 billion.

Business plan

Operating profit is forecast at ¥38.0 billion, up ¥2.9 billion,
while the operating profit ratio is projected to decrease 0.3

increases both in orders received and net sales due to theof a percentage point to 7.0%.

Review ofOperations
and Outlook

In the NTT Engineering business, we foresee substantial
positive impact of the consolidation. Efforts will also be
focused on reducing costs through the elimination andintegration of redundant operations. In the NCC Engineering

COMSYS VISION NEXT STAGE 2023
The COMSYS Group has endeavored to increase the topInc., a new telecommunications carrier in Japan, in additionline of business mainly by expanding business in theto solid orders received from KDDI (au) and SoftBank. In theprivate sector and conducting M&As, along with reducing¥540.0¥481.7
IT Solutions
Business

NTT Engineering
Business
NCC Engineering
Business
Fiscal year
Operating profit(Operating profit ratio)¥331.3¥52.4¥40.3¥238.62013¥75.0¥136.7¥166.5¥269.9¥291.0

Increase the top lineof business
Expand existing fields further
Enter new fields
M&As

Generate profits by creating
consolidation synergies
Improve efficiency
through structural reforms
Share a common IT platform

Grow by30%
or moreGrow by20%
or moreMaintain
net sales(2014.3)(2019.3)

20182019 Forecasts

2023 Targets

¥27.5

¥35.2

¥38.0

¥50 billion or more

(8.3%)(7.3%)(2020.3)(7.0%)(2024.3)(8% or more)

50%

or more50%

or below

To Contents

Social SystemRelated BusinessNet sales¥82.5

billionor moreInformation¥600(Billions of yen)

Financial
Statements

Operating profit:¥400 billion or more
¥30 billion or more

Corporate Social
Responsibility(CSR)

Net sales:

COMSYS VISIONNEXT STAGE 2023
Net sales:¥600 billion or more
¥50 billion or more
Operating profit:
Maintain an approximate total return ratio of 70%

Topics /Corporate
Governancebusiness, we aim to get further orders from Rakuten Mobile,

Achieved COMSYS VISION 2020
ahead of the original scheduleBusiness at a
Glance¥537.0 billion, an increase of ¥31.5 billion year on year, andEight Integrated
Business Groups

IT Solutions and Social System-Related businesses, which

President’s
Messagesuch areas as initiatives to build national resilience4

COMSYS Holdings Corporation Annual Report 2019

costs through drastic structural reforms. As a result, in the
FY ended March 2019, we successfully realized “COMSYSVISION 2020,” which set forth our medium-term targets
to date, ahead of the original schedule. In order toadvance to the next stage, we have formulated a new
medium-term vision titled “COMSYS VISION NEXT
STAGE 2023,” which runs through the FY ending March
2024. Our specific targets are to generate (1) net sales of¥600.0 billion or more and (2) operating profit of ¥50.0
billion or more by the FY ending March 2024, and to (3)maintain an approximate total return ratio of 70% thattime frame.
We will implement the following measures to realize
the medium-term vision. In the IT Solutions and Social
System-Related businesses, our core businesses for
growth, we will promote the virtual company system, withthe aim of expanding net sales further. Moreover, we willseek to enter new fields and expand our business areasby actively implementing M&As and partnerships. In the
carrier-related business, we will facilitate the generationof profits by creating consolidation synergies. Operations
will be more efficient, implementing measures such as
the consolidation of subsidiaries and integration ofbusiness sites at an early stage, along with sharing acommon IT platform.
By coming together as “One COMSYS,” the COMSYSGroup will work tirelessly on a daily basis to realize“COMSYS VISION NEXT STAGE 2023” ahead of theoriginal schedule.

Shareholder returns
With regard to the return of profit to shareholders for the
FY ended March 2019, we have set an annual dividend of¥60 per share and acquired treasury stock of ¥8.0 billion.
For the dividends per share for the FY ending March 2020,
considering the expected business performance anddividend payout ratio, we plan to pay an annual dividendof ¥75 per share (¥35 for the interim dividend and ¥40 for
the year-end dividend), which is an increase of ¥15.
Furthermore, we have decided to acquire treasury stockof up to ¥5.0 billion.
We sincerely request the continued support andunderstanding of all our stakeholders, as we endeavor toreach our goals.

To Contents

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COMSYS Holdings Corporation Annual Report 2019

ProfileEight Integrated Business Groups

President’s
Message

TOSYS
Corporation

NDS
Co., Ltd.

TSUKEN
Corporation

SYSKEN
Corporation

COMSYSJOHOSYSTEM
Corporation

Hokuriku
Denwa Kouji
Co., Ltd.

As of March 2019, the COMSYS Group consists of COMSYS Holdings and 115

Business at a
GlanceSANWA
COMSYS
Engineering
Corporation

Eight Integrated
Business Groups

NipponCOMSYS
Corporation

subsidiaries and affiliates. Its main businesses are the construction of electrical
Review ofOperations
and Outlook

and telecommunications facilities and ICT-related facilities.

Asahikawa<Branch in foreign country>
Jakarta (Indonesia)

Kitami
Kushiro

HOKKAIDO

Otaru
Muroran
Hakodate

NIIGATANAGANO

Chiba

Fukuoka
Saga

Tokai
AICHI
Mie

ShizuokaHamamatsu
Toyohashi

Kanto Minami
Kanagawa

Kansai
Nishi Nippon
Shikoku

Okinawa

Head Office/COMSYS Holdings Corporation

Branch/Nippon COMSYS Corporation

Head Office/Nippon COMSYS Corporation

Branch/SANWA COMSYS Engineering Corporation

Head Office/SANWA COMSYS Engineering Corporation

Branch/TOSYS Corporation

Head Office/TOSYS Corporation

Branch/TSUKEN Corporation

Head Office/TSUKEN Corporation

Branch/NDS Co., Ltd.

Head Office/NDS Co., Ltd.

Branch/SYSKEN Corporation

Head Office/SYSKEN Corporation

Branch/Hokuriku Denwa Kouji Co., Ltd.

Head Office/Hokuriku Denwa Kouji Co., Ltd.

Branch/COMSYS JOHO SYSTEM Corporation

Head Office/COMSYS JOHO SYSTEM Corporation

To Contents

Kagoshima
MiyazakiOita

Tochigi
TOKYO

Information

KUMAMOTO

TohokuSendai

Financial
Statements

KyushuTomakomai

Kanto Naka
NiigataToyamaISHIKAWA
Fukui
Saku/Chushin/Nanshin
Gifu
Chugoku

NagasakiObihiroCorporate Social
Responsibility(CSR)

Hokuriku

Topics /Corporate
Governance

Wakkanai

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COMSYS Holdings Corporation Annual Report 2019

Nippon COMSYS
Corporation

Business Activities
With its primary customers consisting of the NTT
Group, public offices, and private enterprises,
the Nippon COMSYS Group is engaged in theconstruction of electrical and telecommunications facilities on a nationwide scale.

SANWA COMSYSEngineering Corporation

Business Activities
With its primary customers consisting of theKDDI Group and the SoftBank Group, the
SANWA COMSYS Engineering Group is engaged
in the construction of electrical and telecommunications facilities on a nationwide scale.

TOSYS Corporation

Business Activities
With the NTT Group as its primary customer,
the TOSYS Group is engaged in the constructionof electrical and telecommunications facilities,
mainly in Nagano and Niigata.

TSUKEN Corporation

To Contents

Business Activities
With the NTT Group as its primary customer, the
TSUKEN Group is engaged in the constructionof electrical and telecommunications facilities,
mainly in Hokkaido.

Address:
17-1, Higashigotanda 2-chome, Shinagawa-ku,
Tokyo 141-8647, Japan
Establishment:
December 1951
Number of Employees:
Consolidated 6,396
Non-Consolidated 2,859
URL:
http://www.comsys.co.jp/(Japanese only)
Number of Consolidated Subsidiaries:
19 companies

Address:
12-3, Koenji-Minami 2-chome, Suginami-ku,
Tokyo 166-0003, Japan
Establishment:
September 1947
Number of Employees:
Consolidated 1,550
Non-Consolidated 790
URL:
http://www.sancom-eng.co.jp/(Japanese only)
Number of Consolidated Subsidiaries:
3 companies

Address:
1108-5, Higashiyama Aza, Watauchi, Wakaho, Nagano City,
Nagano 381-0193, Japan
Establishment:
January 1960
Number of Employees:
Consolidated 1,241
Non-Consolidated 684
URL:
http://www.tosys.co.jp/(Japanese only)
Number of Consolidated Subsidiaries:
4 companies

Address:
1-23, Kitashijounishi 15-chome, Chuo-ku, Sapporo City,
Hokkaido 060-0004, Japan
Establishment:
April 1951
Number of Employees:
Consolidated 1,988
Non-Consolidated 871
URL:
http://www.tsuken.co.jp/(Japanese only)
Number of Consolidated Subsidiaries:
8 companies

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COMSYS Holdings Corporation Annual Report 2019

With the NTT Group as its primary customer,
the NDS Group is engaged in the construction
mainly in the Tokai and Hokuriku areas.

With the NTT Group as its primary customer,
the SYSKEN Group is engaged in the constructies, mainly in the Kyushu area.

With the NTT Group as its primary customer,
the Hokuriku Denwa Kouji Group is engaged
in the construction of electrical and telecomarea.

Business Activities
With the NTT Group as its primary customer,
the COMSYS JOHO SYSTEM Group is primarily
engaged in the software development business,
mainly in Tokyo.

Address:
23-14, Takanawa 3-chome, Minato-ku,
Tokyo 108-0074, Japan
Establishment:
April 2009
Number of Employees:
Consolidated 537
Non-Consolidated 380
URL:
http://www.comjo.co.jp/(Japanese only)
Number of Consolidated Subsidiaries:
1 company

To Contents

COMSYS JOHO SYSTEM
Corporation

Information

munications facilities, mainly in the Hokuriku

Financial
Statements

Business Activities

Address:
10-1-153 Yonaizumimachi, Kanazawa City,
Ishikawa 921-8044, Japan
Establishment:
November 1949
Number of Employees:
Consolidated 717
Non-Consolidated 458
URL:
https://www.hokuwa.co.jp/(Japanese only)
Number of Consolidated Subsidiaries:
4 companies

Corporate Social
Responsibility(CSR)

Hokuriku Denwa Kouji
Co., Ltd.

Topics /Corporate
Governancetion of electrical and telecommunications facili-

Consolidated 981
Non-Consolidated 586
URL:
https://www.sysken.co.jp/(Japanese only)
Number of Consolidated Subsidiaries:
7 companies

Review ofOperations
and Outlook

Business Activities

Address:
14-45 Hagiwaramachi, Chuo-ku, Kumamoto City,
Kumamoto 860-0832, Japan
Establishment:
September 1954
Number of Employees:

Business at a
GlanceSYSKEN Corporation

Eight Integrated
Business Groupsof electrical and telecommunications facilities,

President’s
MessageBusiness Activities

Address:
2-15-18 Chiyoda, Naka-Ku, Nagoya City,
Aichi 460-0012, Japan
Establishment:
May 1954
Number of Employees:
Consolidated 3,066
Non-Consolidated 1,125
URL:
https://www.nds-g.co.jp/en/
Number of Consolidated Subsidiaries:
22 companies

ProfileNDS Co., Ltd.

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COMSYS Holdings Corporation Annual Report 2019

Business at a Glance

NTT Engineering
Business

Orders Received/Net Sales(Year ended March 31, 2019)

Respective Areas of Business Operationsof Group Companies
Nippon COMSYS Group■SANWA COMSYS Engineering Group

44.1% 222.9■ Net sales

47.1% 226.8■

TSUKEN Group■NDS Group■

SYSKEN Group■

Hokuriku Denwa Kouji Group■COMSYS JOHO SYSTEM Group(Billions of yen)
■ Orders received

TOSYS Group

Primary Customers■ NTT East and NTT West
■ NTT Communications■ NTT DOCOMO

Business Domains

Business Activities■ TT access businessNNTT network business■ NTT mobile businessIn the NTT Engineering segment, the Group is mainly engaged in the■construction of telecommunications infrastructure for the NTT Group,
including the installation of telephone lines and exchange equipment,
transition of power lines underground, and construction of fixed-line
broadband and wireless base stations. This is the COMSYS Group’s corebusiness and accounts for the largest share of Group-wide net sales.

NCC Engineering
Business

Orders Received/Net Sales(Year ended March 31, 2019)

Respective Areas of Business Operationsof Group Companies
Nippon COMSYS GroupSANWA COMSYS Engineering Group■TOSYS GroupTSUKEN Group

Business Domains■

To Contents

 elecommunications facilityT
construction business with
telecommunications carriers
other than the NTT Group

9.2%

46.5

■ Net sales

8.9%

43.0

■

SYSKEN Group■

Hokuriku Denwa Kouji Group■COMSYS JOHO SYSTEM Group(Billions of yen)
■ Orders received

NDS Group

Primary Customers■ KDDI Group■ SoftBank Group

Business Activities

In the NCC Engineering segment, the Group undertakes construction of
telecommunications and other related facilities for telecommunications
carriers other than the NTT Group.

9

COMSYS Holdings Corporation Annual Report 2019

ProfileOrders Received/Net Sales(Year ended March 31, 2019)

16.0%

80.9

■ Net sales

15.6%

75.0

■

SANWA COMSYS Engineering Group■TOSYS Group■TSUKEN Group■NDS Group■

SYSKEN Group■

Hokuriku Denwa Kouji Group■COMSYS JOHO SYSTEM Group■

Primary Customers■ Various private-sector companies,

public offices and local government
authorities

Business Activities

Network Integration (NI) Solutions
System Integration (SI) Solutions■ Software development andcontracted development■ MaintenanceIn the IT Solutions segment, the Group combines its accumulated expertise with
cutting-edge network technologies to provide comprehensive solutions andservices in the IT field, ranging from planning proposals regarding optimal systems
integration for customers’ business operations to providing maintenanceservices.

■■

Review ofOperations
and Outlook

Business Domains

Business at a
Glance■ Orders received

Nippon COMSYS Group

Eight Integrated
Business Groups(Billions of yen)

Respective Areas of Business Operationsof Group Companies

President’s
Message

IT Solutions
Business

Topics /Corporate
Governance

Orders Received/Net Sales(Year ended March 31, 2019)30.7% 155.0■ Net sales

28.4% 136.7■

SANWA COMSYS Engineering Group■TOSYS Group■TSUKEN Group■NDS Group■

SYSKEN Group■

Hokuriku Denwa Kouji Group■COMSYS JOHO SYSTEM Group

Primary Customers■ Public offices, local government authori-

Information■ Orders received

Nippon COMSYS Group

Financial
Statements(Billions of yen)

Respective Areas of Business Operationsof Group Companies

Corporate Social
Responsibility(CSR)

Social System-Related
Businessties and various private-sector companies
Business ActivitiesE lectrical facility constructionC ommunication cable box(C.C. Box) construction■ C ivil engineering construction■ B uilding construction andassociated construction■ E
 nvironment and eco-solutions■ O thers

In the Social System-Related Business segment, the Group is engaged in designand construction of electrical facilities for places such as public facilities andoffice buildings; general civil engineering projects; the construction of officebuildings, warehouses, factories, and disaster preparation facilities; as well as
businesses related to the environment and eco-businesses, such as solar power
generation systems, energy conservation solutions, and other urban infrastructure businesses.

■■

To Contents

Business Domains

10

COMSYS Holdings Corporation Annual Report 2019

Review of Operations and Outlook

NTT Engineering Business
Orders Received / Net Sales

NCC Engineering Business
Orders Received / Net Sales■ Orders Received ■ Net Sales■ Orders Received ■ Net Sales(Billions of yen)
300

(Billions of yen)50

222.9 226.8
184.5

232.5

44.5

43.0

246.5

39.2
35.7

185.9

150

0

48.0

46.5

25

2018.32019.32020.3(Forecast)0

2018.32019.32020.3(Forecast)

FY ended March 2019
Performance and Business Activities

FY ended March 2019
Performance and Business Activities

Orders received for the FY ended March 2019 were ¥222.9 billion,a ¥38.4 billion increase compared to the FY ended March 2018and ¥7.9 billion more than planned due to the effects of consolidation, strong performance in the access line construction businessand electric power equipment renewal.
Net sales were ¥226.8 billion, a ¥40.9 billion increase year on
year and ¥11.3 billion over the plan due to the effects of consolidation and steadily working on the ample contract backlogs.

Orders received for the FY ended March 2019 were ¥46.5 billion,a significant increase of ¥7.3 billion compared to the FY ended
March 2018 and ¥3.5 billion more than planned due to the effectsof consolidation and brisk receipt of orders from au and
SoftBank.
Net sales were also strong at ¥43.0 billion, an increase of ¥7.3
billion year on year and ¥2.0 billion more than the plan becauseof the effects of consolidation and front-loaded orders for aubase station construction.

Outlook for FY ending March 2020
Orders received are projected to increase by ¥9.5 billion year on
year to ¥232.5 billion and net sales are expected to increase by¥19.6 billion to ¥246.5 billion due to the effects of consolidation
despite a decrease in capital investment by NTT East, NTT Westand NTT DOCOMO.

Future Outlook
In the NTT fixed-line business, net sales are forecast to gradually
decline over the long term as capital investment by NTT Eastand NTT West continues its decreasing trend despite being
supported by promotion of optical fiber services, conversion
to IP based networks, expansion of the access network in
conjunction with the rollout of 5G, and increase in maintenancework.
In the NTT mobile business, 5G pre-services will start from
September 2019 and 5G commercial services from spring 2020,
but full-scale 5G construction is thought likely to occur from2021 onward. Net sales are projected to remain constant as
NTT DOCOMO’s capital investment is forecast hold steadyover the long term.

Outlook for FY ending March 2020
Capital investments by KDDI and SoftBank remain strong, andorders received are expected to increase by ¥1.4 billion to ¥48.0
billion compared to the FY ended March 2019 as we anticipate
upgrades of SoftBank’s LTE base stations to support 5G andincreased orders resulting from constructions for au’s new 1.7
GHz frequency band and quality improvement measures. Net
sales are also projected to increase by ¥1.4 billion to ¥44.5 billion
year on year.

Future Outlook
Capital investment by KDDI and SoftBank is expected to remain
at a high level going forward. Rakuten Mobile, Inc., a new mobile
telecommunications carrier in Japan, has plans to significantly
accelerate its 4G base station deployment plan and we will
actively seek to receive orders for this work. Commercial services
for 5G will start from spring 2020, but full-scale 5G construction
is forecast to occur from 2021 onward.

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11

COMSYS Holdings Corporation Annual Report 2019

ProfileSocial System-Related Business

Orders Received / Net Sales

Orders Received / Net Sales■ Orders Received ■ Net Sales■ Orders Received ■ Net Sales(Billions of yen)
200
87.0
80.9

169.5

82.5

166.5

155.0

75.0

136.7
60.4

118.0
99.2

100

2019.32020.3(Forecast)0

2018.32019.32020.3(Forecast)

Orders received for the FY ended March 2019 were ¥80.9 billion,
an increase of ¥20.4 billion compared to the FY ended March2018 and ¥4.9 billion more than planned due to the effects ofconsolidation and strong project acquisition in all sectors.
Net sales were ¥75.0 billion, an increase of ¥15.9 billion year
on year and ¥2.5 billion more than the plan due to the effectsof consolidation and robust software development.

Orders received for the FY ended March 2019 were ¥155.0 billion,
an increase of ¥37.0 billion compared to the FY ended March2018 due to the effects of consolidation and acquisition oflarge-scale projects. However, orders received marginally failed
to achieve their target, falling short of the plan by ¥0.9 billion.
Net sales also increased by ¥37.5 billion year on year to ¥136.7
billion due to the effects of consolidation and an increase insolar power generation facility construction, but fell short of theplan by ¥4.2 billion due to the effects of delays in someprojects.

Outlook for FY ending March 2020

Future Outlook

Orders received are forecast to increase by ¥14.4 billion year on
year to ¥169.5 billion and net sales are projected to increase by¥29.7 billion year on year to ¥166.5 billion due to the effects ofconsolidation, last-minute demand of the mega-solar projects,
and accelerated growth in the electrical and communications
sector as well as infrastructure sector related to civil engineering
for water supply, sewerage and agricultural water.

Future Outlook

To Contents

Like the IT Solutions business, we position the Social SystemRelated business as a core business for growth. We will aim to
expand the business in three sectors: electrical communications,renewable energy, and infrastructure.
In the electrical communications sector, we will promoteacquisition and bolstering of peripheral businesses, such as
those related to air conditioning and sanitation facilities, inaddition to our core businesses in electrical and communications
facilities. We will focus on nationwide expansion from the Tokyo
metropolitan area.
In the renewable energy sector, we will acquire maintenancecontracts for solar power systems and new renewable energy
projects such as biomass power, etc.
In the infrastructure sector, we will actively take part in Private
Finance Initiative (PFI) projects for undergrounding utility poles
promoted by the Ministry of Land, Infrastructure, Transport andTourism and the future PFI projects in water and sewerage aswell as educational institution facilities.

Information

The IT market is forecast to remain strong from now on withexpected average annual growth rates of 10% in the IoT market
and 21% in the cloud services market. We will promote further
alliances in such high growth markets as cloud services and IoT
to capture new customers. We will also expand sales throughcross-selling and applying the alliance business model acrossGroup companies. Furthermore, we will promote the virtualcompany system and take on the challenge of creating new
business by providing solutions supporting all layers including
software, networks and maintenance.

Outlook for FY ending March 2020

Financial
Statements

Orders received are expected to increase by ¥6.0 billion to ¥87.0
billion and net sales are projected to increase by ¥7.4 billion to¥82.5 billion due to the effects of consolidation, software development and growth in server storage-related business.

Corporate Social
Responsibility(CSR)

FY ended March 2019
Performance and Business Activities
Topics /Corporate
GovernanceFY ended March 2019
Performance and Business Activities

Review ofOperations
and Outlook

2018.3Business at a
Glance

59.0

50

0

Eight Integrated
Business Groups(Billions of yen)
100

President’s
Message

IT Solutions Business12

COMSYS Holdings Corporation Annual Report 2019

TopicsOrders start for fifth-generation
mobile telecommunications
systems (5G)

Order received from PFI tounderground utility poles

The Ministry of Internal Affairs and Communications allo-

Nippon COMSYS Corporation received orders for Private

cated 5G frequencies to the four telcos in April 2019, andFinance Initiative (PFI) projects for putting telephone lines

they have moved to start pre-5G services from fall 2019

underground in Shimane and Ehime Prefectures for the FY

and commercial 5G services from spring 2020.

ended March 2019.

The ministry plans to systemize Local 5G from fall 2019.

The Ministry of Land, Infrastructure, Transport and Tourism

Local 5G refers to 5G that can only be used in a limited

is promoting projects to underground utility poles, but thearea, with various envisaged uses such as smart factories

rate of achievement in local governments is sluggish,that automatically control production lines, remote opera-

ranging from 0-5% across all prefectures due to their limitedtion of heavy machinery, disaster-prevention systems andbudgets. PFI projects have been trialed to resolve thetelemedicine.

financial problem by equalizing payments for local govern-

As the largest company in the telecommunications

ments and enabling payment necessary for construction.

construction industry, the COMSYS Group will not only

Nippon COMSYS Corporation recently participated in abuild 5G communications networks throughout Japan, but

PFI project with the ministry’s Chugoku and Shikoku regional

will also contribute to implementation of various services

development bureaus as a consortium member and wasusing 5G in each of the communities.

designated as a company to perform the construction work.
Going forward, we will aim to take part in undergrounding
projects rolling out throughout Japan. We can then expand

Carrier Establishment Plans
5G investment*

docomoau (KDDI)SoftBank
Rakuten Mobile

100%

97.0%
93.2%
64.0%
56.1%

50%

our participation in other PFI projects related to water andsewer services, and cultural institutions and more by leveraging the expertise and knowledge acquired through theundergrounding projects.

0%

2019(FY)

Rugby World Cup Japan
5G pre-service

MIC’s 5G
introduction
guidelines

docomoFrequency
allocation

2020

Tokyo 2020 Olympic GamesTokyo 2020 Paralympic Games

Systemize
local
frequency use

Preservice

2021

Provide 5G service toall prefectures2022

regional
revitalization
by 5G

2023

5G infrastructure roll out rate:
50% or more

PFI
agreement

5G investment
by end of FY2024

MIC

Service launchBase station facilities:¥660.0 billion
Network facilities:¥135.0 billion• Chugoku Regional
Development Bureau• Shikoku Regional
Development Bureau

Trial

Service launch

SoftBank

Preservice

Service launchBase station facilities:¥122.1 billion
Network facilities:¥84.0 billion

Rakuten
MobileAdvance use of
4G for 5G virtualarchitecture

Service launchBase station facilities:¥159.8 billion
Network facilities:¥34.8 billion

Source: Created by COMSYS, based on the MIC’s “Approval to Applications for Authorization of
Establishment Plans on Specified Base Stations for Spreading 5G Mobile Communications Systems”* 5G infrastructure rollout rate: Ratio of meshes established for high-capacity 5G base stations, withcoverage throughout Japan divided into 100 km2 meshes (about 4,500).

Conventional Undergrounding

To Contents

Local governments pay construction costsau (KDDI)

Base station facilities:¥372.8 billion
Network facilities:¥93.9 billion

Consortium
Nippon COMSYS(construction)

Company A(architecture,
maintenance management)

Company B(management)

Undergrounding through PFIs

Local government
budgets peak

DesignLocal government
budgets can beequalized

Construction, other

MaintenanceperiodConsortiums can bear
construction costs during
the maintenance period

Local governments
pay in installments

13

COMSYS Holdings Corporation Annual Report 2019

The COMSYS Group recognizes that strengthening
corporate governance is important to improve corporate
aims at becoming a company that can be trusted andhighly evaluated by all stakeholders through its actual
performance.
COMSYS Group considers it is essential to establish
transparency and soundness in corporate management.
The COMSYS group makes all possible efforts to ensure
observance of compliance, to strengthen risk management, to rigorously implement the COMSYS Group’s
code of conduct, to tighten internal control, and toof the Board of Directors.
This system enables swift decision-making and nimble
business execution, while allowing the Board of Directors
to focus exclusively on supervising business execution.
As of June 25, 2019, the Board of Directors comprises
nine directors and six directors who are also Audit andSupervisory Committee members, including five outside
directors. The board holds regular meetings in accordancewith the Board of Directors Rules, as well as ad hoc meetings as required. The board makes decisions on statutory
matters as well as important matters related to management and supervises their business execution.
Every quarter, directors responsible for each businesssegment report to the Board of Directors about progressof their business execution based on policies determined

Organizational Structureand supervisory committee system as its corporate governance structure at the 14th General Shareholders’Meeting held on June 29, 2017. The corporate governanceof Directors, Audit and Supervisory Committee and otherorganizations.
The audit and supervisory committee system is charDirectors with a structure enabling rapid decision-making.
The Company aims at achieving further increase in corporate value through the transition to this system.
who are well-versed in the Company’s operations andoutside directors who monitor management from an
independent standpoint, with an aim of enhancing management effectiveness. Meanwhile, the Company has
reinforced auditing functions with its Audit and Supervisory
Committee members in order to ensure and enhance

The Senior Management Committee is made up of
directors other than outside directors and the full time
Audit and Supervisory Committee members. In principle,
this committee meets once a month to examine, discuss,and pass resolutions on issues related to key decisions,in an effort to improve the efficiency of businessexecution.
The heads of each operating department and certain
other personnel attend meetings of the Senior Management Committee as observers, as necessary, to ensurethat they fully understand the basis for all management
decisions.
Moreover, to strengthen the independence, objectivity,
and responsibility of the functions of the Board of Directors, the Company has established the Nomination andRemuneration Advisory Committee, which includes outside directors, to receive appropriate contributions and

To Contents

The Board of Directors comprises internal directors

director.

Information

acterized by strong supervisory functions of the Board ofoperates under the supervision of the responsible

Financial
Statements

system comprises a General Shareholders’ Meeting, Boardby the board. Also, each business segment effectively
Corporate Social
Responsibility(CSR)

The Company transitioned to the company with the audit

Topics /Corporate
Governancecontribute to society based on our business activities.

sions in its Articles of Incorporation and by the resolution

Review ofOperations
and Outlook

appropriate information disclosure, to promote theness execution to directors in accordance with the provi-

Business at a
GlanceTo realize stronger corporate governance, the

The Company delegates important decisions on busi-

Eight Integrated
Business Groups

value. By striving to achieve this, the COMSYS Groupsoundness in management.

President’s
Message

Basic Corporate Governance
Philosophy

ProfileCorporate Governance14

COMSYS Holdings Corporation Annual Report 2019advice from outside directors on particularly importantcomposition of the Nomination and Remuneration Advi-matters such as nominations and remuneration. The

sory Committee is as follows:

Position

Name

ChairmanPresident and Representative Director

Takashi Kagaya

Committee

Director of Human Resources Department

Hitoshi Kumagai

Committee

Outside Director (Audit and Supervisory Committee Member)

Masahiko Miyashita

Committee

Outside Director (Audit and Supervisory Committee Member)

Kazuyoshi Onohara

Diagram of the COMSYS Group’s Business Execution Framework, Management Monitoring and Internal Control System

General Shareholders’ Meeting
Election / Dismissal

Election / Dismissal

Directors who are
Audit and Supervisory
Committee members

Election / Dismissal

Form andparticipate

Directors

Form
Cooperation

Audit and Supervisory
Committee

Cooperation

Audit

Internal Control and
Audit Department
Internal
Audit

Nomination andRemuneration
Advisory Committee

Board of Directors

Audit andsupervise

Election /Dismissal / Supervise

Instruct /ReportPresident(Senior Management Committee)

Instruct /ReportExecutive
Department

Internal Audit /ReportReportForm and participate

Audit and supervise

Independent
AuditorConsultation

VariousCommittees
Management
Monitoring

Deliberate /ReportDisseminate
Information

COMSYS Group
Presidents Committee

COMSYS GroupTo Contents

Nippon COMSYS Corporation, SANWA COMSYS Engineering Corporation, TOSYS Corporation,
TSUKEN Corporation, NDS Co., Ltd., SYSKEN Corporation, Hokuriku Denwa Kouji Co., Ltd.,COMSYS JOHO SYSTEM Corporation, COMSYS Shared Services Corporation(As of June 25, 2019)

15

COMSYS Holdings Corporation Annual Report 2019

ProfileThe Company implements its internal control system
based on a “Basic Policy on Establishing an Internal
Control System” that was approved by resolution of the

Furthermore, similar risk management committees were
established at each Group company. In this manner, efforts
are being made to properly address the business risks eachGroup company faces and to minimize the seriousness ofeach risk.
The Company has formulated Risk Management Guide-

Establishing a Compliance Structurelines and Crisis Management Guidelines and will strive tomaintain sustainable operations and ensure steady growthof the Company and the COMSYS Group by practicing

Program, has set forth Compliance Action Guidelines

effective risk management.

within this framework, and has established the Compliance Committee.

For example, the COMSYS Group manages operationalrisks by ensuring that Group companies operate in accor-

made up of representatives from the Company and each

14001, ISO/IEC 27001, COHSMS (Construction Occupa-of the core operating subsidiaries, as well as all Audit

tional Health and Safety Management System), and Privacy

and Supervisory Committee members. The committee

Mark certifications based on the actual working environ-oversees compliance throughout the COMSYS Group,

ments at each Group company.

and strives to increase the Group’s awareness of compliance and establish an effective compliance structure

their own. These committees work to establish aneffective compliance structure by implementing educational and training programs, as part of efforts to deepen
action guidelines of each respective COMSYS Group
company.

lished the CSR Committee to coordinate Group-wide
CSR activities with the aim of ensuring that the Group
actively fulfills its economic and social responsibilities,
including social contribution activities, as a good
corporate citizen.
The CSR Committee is engaged in CSR activities
corporate governance, risk management, information
disclosure and protection, security countermeasures,social contributions, and environmental issues.

changing business environment, the COMSYS Group is
be managed appropriately. Therefore, the Group has
established a Risk Management Committee, chaired by
the president and made up of directors from the Company
and each of the core operating subsidiaries.
The “Basic Policy on Risk Management” was formulated

Establishing an Information Management Structure
Confidential documents and records related to businessactivities and execution of directors’ duties, including
minutes of the Board of Directors and Senior

To Contents

To maintain and enhance corporate value amid a rapidly
aware that it faces a variety of business risks which must

Informationthat address various themes, such as compliance,

Establishing a Risk Management
Structure

Financial
Statements

employees’ understanding of the corporate policy and

The Company and the COMSYS Group have estab-

Corporate Social
Responsibility(CSR)

panies have set up similar compliance committees of

CSR Activities

Review ofOperations
and Outlook

dance with management systems, such as ISO 9001, ISO

Topics /Corporate
GovernanceThis committee, which is chaired by the president, isthrough various discussions. All COMSYS Group com-Business at a
GlanceThe Company has formulated its internal Compliance

Eight Integrated
Business Groups

Board of Directors as follows.

in order to promote Group-wide risk management.
President’s
Message

Status of the Internal Control System

16

COMSYS Holdings Corporation Annual Report 2019

Management Committee meetings and other reports,

To ensure that all COMSYS Group operations areare stored and managed appropriately based on laws

performed appropriately, the directors of each coreand regulations, as well as the Group’s internal rules.

operating subsidiary also participate as members in the

Furthermore, in order to improve the efficiency ofvarious Group committees established within the Com-

operations and business execution, after ensuring anpany, including the CSR Committee, the Complianceadequate level of information security, the Company is

Committee, and the Risk Management Committee. In

working to deploy various information systems to put inthis way, the COMSYS Group ensures that all policies

place a framework for sharing the latest managementand decisions discussed by these groups are reported

information.

to and thoroughly implemented by each Group
company.
In addition, the Group has formed the COMSYS

Establishing a Group Management
Structure
Business management of the core operating subsidiaries, which are the major subsidiaries of the COMSYSGroup, is based on the “COMSYS Group Agreement.”

Group Presidents Committee, which is made up of thepresidents of COMSYS Group companies. This committee meets regularly and works to ensure that management policies and activities are clearly implemented by
all members.

In addition, each core operating company manages theirsubsidiaries in which they have directly invested. The
Company possesses a Group operations system that

System to Eliminate Antisocial Forces

provides guidance and advice as necessary to businessTo fulfill our social responsibility as a company, themanagement conducted by the core operating

Company and the COMSYS Group have absolutely no

subsidiaries.

relationship with any antisocial forces or groups that

Important management decisions within the COMSYS

threaten the order and safety of civic society. Moreover,Group are reported to and discussed by the Senior

the Company and the COMSYS Group will maintain aManagement Committee and the Board of Directors in

resolute and uncompromising attitude in the face of anyline with Group Operation Standards, which clarify

attempts to form a coercive relationship.

decision-making and reporting rules for the COMSYSThe Company and the COMSYS Group have pre-Group. In this manner, the Group management andpared an organizational framework that enables themmonitoring framework is centered on the Company.

to block the formation of a relationship with any antiso-

The Company has established internal reporting

cial forces or groups, and to maintain a resolute andliaison contacts that cover the entire COMSYS Group,

uncompromising attitude while cooperating with law-both inside the Company and at an external law firm.

yers, the police, and other relevant authorities.

The Company works to prevent corporate impropriety
by ascertaining reports from COMSYS Group employees
and others about incidents that may violate laws andregulations. The Company has also made efforts to
To Contents

prevent unfair treatment of whistleblowers by setting up
appropriate systems in line with the Whistleblower
Protection Act.

The Audit and Supervisory Committee
The Company’s internal auditing organization consistsof an Internal Audit Office and an Internal Control Officewithin the Internal Control and Audit Department.
The Internal Audit Office formulates internal auditing

17

COMSYS Holdings Corporation Annual Report 2019

Profileconducts internal audits of the Company and all Groupby maintaining close ties with the Group’s independentcompanies. These activities are intended to ensure that

auditor and the Internal Control and Audit Department.

business execution is lawful and appropriate, and that

For example, the Audit and Supervisory Committee

each business risk faced by the Group is minimized,

members accompany the independent auditor andwhile maximizing the quality of business operations.

others on on-site internal and financial audits as observers in accordance with the audit plans. Furthermore, theinternal control policies as regards financial reporting,

Audit and Supervisory Committee members hold regularand provides instructions and evaluations about themeetings with the corporate auditors of the main Groupeffectiveness of the internal control systems in thecompanies to share information, exchange opinions,Company and the Group.

and engage in related activities to maintain close

The Audit and Supervisory Committee comprises sixof audits.
If the Audit and Supervisory Committee requires

tee’s activities, the Company has established a system

assistance for its duties, the Company discusses theby which the Audit and Supervisory Committee members

committee’s needs with the Audit and Supervisory

mutually elect a standing Audit and Supervisory Com-

Committee members and appoints organizations andmittee member who will attend important internal

assistants. The personnel matters and transfers of themeetings and committees, such as the Senior Manage-

assistants are conducted after consultation with thement Committee and the Compliance Committee, as a

Audit and Supervisory Committee members.

stantly check the status of business execution andprovide opinions.

Outside Directors
The Company has five outside directors, all of whom are

and Supervisory Committee, directors and employees

Audit and Supervisory Committee members. There areof the Company and the Group are required to reportno personal, capital, business or other relationships

on major business activities or issues that could affectbetween the Company and its outside directors that

the Company’s operations or performance to the Audit

could impair their independence.
outside directors, the Company's policy is to register all

members may request the directors and employees ofoutside directors as independent directors to ensure

the Company and the Group to provide the abovethat they have no conflicts of interest with generalreports or other reports considered necessary at theirshareholders. The Company has notified the Tokyo Stockdiscretion.

Exchange of those independent directors, as stipulated

The Audit and Supervisory Committee members also

by the exchange.

hold regular meetings with the president to directly

Furthermore, there are no personal, capital, businessexpress their views on issues related to business execu-

or other relationships between the companies that thetion and other topics.

outside directors have been associated with and the

The Audit and Supervisory Committee members of
the Company constantly check whether businessCompany and the COMSYS Group that could impair
their independence.

To Contents

At the same time, regarding the independence ofunder the system, the Audit and Supervisory Committee

Informationand Supervisory Committee members. Furthermore,Financial
Statements

In addition, based on the rules governing the Audit

Corporate Social
Responsibility(CSR)

regular member to ensure that the member can con-

Topics /Corporate
Governancethe effectiveness of the Audit and Supervisory Commit-

Review ofOperations
and Outlook

members, five of whom are outside directors. To ensure

coordination within the Group and ensure the efficacy

Business at a
GlanceThe Internal Control Office formulates operational

Eight Integrated
Business Groups

operations are executed appropriately and effectively
President’s
Messagepolicies based on top management’s requirements, and18

COMSYS Holdings Corporation Annual Report 2019

Moreover, in appointing outside directors, the Com-

experience in various industries as corporate managers

pany considers the conditions for independence speci-

or a high-level of ability and insight into the law asfied by the Companies Act and the Tokyo Stockattorneys. They are expected to provide appropriate

Exchange, and emphasizes personnel who are able toadvice from multiple perspectives. Furthermore, theadvise and supervise the Company’s management,

Company judges that the outside directors will carry out

having either of the following experiences ortheir audits and supervision from an objective stand-qualifications.

point, and contribute to strengthening the Company’s(1) A person who has served as a corporate officer or

corporate governance.

management team member at another company,
possessing deep knowledge of corporate

Compensation, etc., for Directors

management(2) A person with expertise in law, accounting, and so

The following items form the basic policy for determining

forth

compensation, etc.

All of the outside directors have either a wealth of• T he compensation structure shall drive continued

knowledge and wide-ranging insight from their lengthy

Type of Compensation

Fixed
compensation

Item

Details

Basiccompensation

Basic compensation made of position-based payment that the Company
stipulates based on position and of work remuneration that is calculated
according with any duties performed concurrently for the presiding
company. The position-based payment and payment for presiding company
duties are separated and a fixed amount is paid as cash compensation.

Share-based
compensation
stock options

A share-based compensation stock option system with an exercise price of¥1 has been vested for directors, excluding members of the Audit andSupervisory Committee. The number of shares granted is determined by thebasic remuneration of each director. The percentage of compensation the
Company pays is determined by the duties each director carries out for theCompany or presiding company.

Ordinarystock options

An ordinary stock option system with an exercise price of equal to or higher
than the market value at the time of issuance has been introduced for
directors, excluding members of the Audit and Supervisory Committee. The
number of shares granted is determined by the basic remuneration of eachdirector. The percentage of compensation the Company pays is determinedby the duties each director carries out for the Company or presiding
company.

Bonus

Bonus is calculated by multiplying basic compensation and indices that take
into account a set of performance evaluation metrics and is paid in cash.
Performance evaluation metrics are based on consolidated net sales andconsolidated operating profit growth compared to the previous year and thedegree of achievement of the business plan, which are recognized as key
performance indicators for the Company. In addition, a qualitativeevaluation of performance of net sales and operating profit compared withthose from the previous year and the business plan at presiding companies
directors concurrently working is reflected in the calculation of bonus.

Long-term
incentive-based
compensation

To Contents

Performance-based
compensation

enhancement of corporate value.

19

COMSYS Holdings Corporation Annual Report 2019

Profile•C ompensation shall attract talents who are able toing talents as directors who implement the corporate

perform auditing duties or supervision, etc., of execu-

vision.

tion of duties.
•C ompensation shall ensure appointment of talentsof performance-based compensation are outlined in the

who are able to supervise and oversee the appropriate-previous table. Compensation is categorized into fixed

ness of management as well as participate in manage-

compensation, long-term incentive-based compensa-

ment’s judgment and decision-making.

tion, and performance-based compensation.

To ensure directors who are members of the Audit

ate and remains within the limit approved by the Generalappropriate manner, compensation shall be a fixed

Shareholders’ Meeting, amounts are deliberated by thepayment consisting only of basic compensation in

Nomination and Remuneration Advisory Committee,

principle. To ensure compensation etc., is within the limit

including outside directors. The Board of Directors takes

approved by the General Shareholders’ Meeting,into account the discussions at the committee and makes

amounts are deliberated by the Audit and Supervisory

resolutions.

Committee, and the Board of Directors will makeThe following items are the basic policy on deciding
members of the Audit and Supervisory Committee.

Topics /Corporate
Governancethe amount of compensation, etc., for directors who areresolutions.

Review ofOperations
and Outlook

and Supervisory Committee conduct their duties in an

Business at a
GlanceTo ensure compensation, etc., is objectively appropri-

Eight Integrated
Business Groups

The system for compensation, etc., and a summary

President’s
Message• Compensation shall ensure appointment of outstand-Corporate Social
Responsibility(CSR)
Financial
Statements
Information

To Contents

20

COMSYS Holdings Corporation Annual Report 2019

Corporate Social Responsibility (CSR)

Basic Approach to CSR
In this information-rich society, the role of the COMSYS

Moreover, the Group cares for the environment as it

Group is to build a reliable, safe, and convenient networked

undertakes development of a wider infrastructure, and willsociety and support the networks that connect every corner

help to create an information-rich society that coexistsof society like clockwork. We consider this our responsibility

harmoniously with the global environment.
As a member of society, the COMSYS Group aims toto society as a corporation.
The COMSYS Group promotes its CSR activities underbecome a corporate entity that is trusted and loved by many

the CSR concept that we are contributing to the creation of

stakeholders, including customers, local communities,

a society where telecommunications networks foster moreshareholders, and employees. We will also engage in CSR

meaningful relationships among people, and between people

activities to achieve sustainable growth.

and their communities. We see our basic CSR activities as asocial contribution made through business activities.

COMSYS Group Value Creation Process

Shareholders

COMSYS Group
Business Activities

Realize COMSYS VISIONNEXT STAGE 2023

Outstanding
management resources

Society

Corporate governancePursueContributereliability
to society
and safety
throughbusiness Human

Aim as“One COMSYS”

resources

Enhance quality
and consider the environment

Customers

Management Philosophy• Spirit for taking on challenges• Firm management• Financial foundations• Partnership with cooperating companies• Technology and expertise• Business scope being expanded
through alliances• M&A• We will build a company that customers
continue to choose through the construction ofdiverse infrastructure that carries our era forward.
• We will contribute to our country and local communities bybuilding social infrastructure that supports affluent lifestyles.
• We will continue with unrelenting reform in our aim
to further increase corporate value.

2

Increase the top lineof business

Generate profits
by creating
consolidation synergies• Expand existing fields further• Enter new fields• M&As• Improve efficiency
through structural reforms• Establish a common IT platform

Groupemployees

4

3

1
Human
EnhancePursueresources
reliability quality andand safety consider theenvironmentGroupinnovation

Four Guideposts

For the COMSYS Group, CSR activities are an importantelement in supporting value creation.

In addition, with our management philosophy, theGroup aims to realize business expansion, maximize

To Contents

With human resources as its core, the COMSYS Grouputilization of human resources, and promote structural

engages in business activities with a strong awareness ofreforms, as called for by our medium- to long-term vision.

our priority challenges, which are to “pursue reliability andBy establishing the four guideposts, the COMSYS

safety,” “enhance quality and consider the environment,”

Group is moving through a short-term PDCA cycle for eachand “contribute to society through business.” We strive

goal, and boosting the realization of the medium- to

to strengthen governance, which is the management

long-term vision.

foundation that supports these activities.

21

COMSYS Holdings Corporation Annual Report 2019

ProfileFinancial Statements

COMSYS Holdings Corporation and Consolidated Subsidiaries
As of March 31, 2018 and 20192018

Millions of yen
2019

Cash and deposits �������������������������������������������������������������������������������������������������������������������������

¥ 29,144¥ 28,618

Notes receivable, accounts receivable from completed construction contracts and other �����

121,826

169,186

President’s
Message

Consolidated Balance Sheets

ASSETS

5,671
28,983

Real estate for sale �������������������������������������������������������������������������������������������������������������������������

—

1,987

Merchandise �����������������������������������������������������������������������������������������������������������������������������������

120

771

Raw materials and supplies �����������������������������������������������������������������������������������������������������������

682

1,817

Other current assets �����������������������������������������������������������������������������������������������������������������������

3,199

10,111

Allowance for doubtful accounts ���������������������������������������������������������������������������������������������������

(54)

(136)

Total current assets �������������������������������������������������������������������������������������������������������������������������

182,246

247,013

Non-current assets:

Business at a
Glance2,719
24,607

Review ofOperations
and Outlook

Investments in leases ���������������������������������������������������������������������������������������������������������������������
Costs on construction contracts in progress �������������������������������������������������������������������������������

Eight Integrated
Business Groups

Current assets:

Property, plant and equipment
61,98287,826

Accumulated depreciation �����������������������������������������������������������������������������������������������������

(31,391)(45,979)

Buildings and structures, net �������������������������������������������������������������������������������������������������

30,591

41,84735,17655,124

Accumulated depreciation �����������������������������������������������������������������������������������������������������

(19,005)(29,021)

Machinery, equipment and vehicles and tools, furniture and fixtures, net �����������������������

16,171

26,103

Land ���������������������������������������������������������������������������������������������������������������������������������������������

47,59265,748

Lease assets ���������������������������������������������������������������������������������������������������������������������������������

451

2,389

Accumulated depreciation �����������������������������������������������������������������������������������������������������

(287)(1,087)
1,302

164
8,228

743

Total property, plant and equipment ����������������������������������������������������������������������������������������

102,748

135,744

5,969

4,999

Other intangible assets �������������������������������������������������������������������������������������������������������������

4,094

4,606

Total intangible assets ���������������������������������������������������������������������������������������������������������������

10,0639,606

Investment securities �����������������������������������������������������������������������������������������������������������������

12,956

27,712Financial
Statements

Lease assets, net ���������������������������������������������������������������������������������������������������������������������
Construction in progress �����������������������������������������������������������������������������������������������������������

Corporate Social
Responsibility(CSR)

Machinery, equipment and vehicles and tools, furniture and fixtures�������������������������������������

Topics /Corporate
Governance

Buildings and structures �������������������������������������������������������������������������������������������������������������

Intangible assets:
Information

Goodwill ���������������������������������������������������������������������������������������������������������������������������������������

Investments and other assets:
1,000

963

1,519

2,158

Retirement benefit asset �����������������������������������������������������������������������������������������������������������

11,37011,197
5,886

Other assets ���������������������������������������������������������������������������������������������������������������������������������

3,304

Allowance for doubtful accounts �����������������������������������������������������������������������������������������������

(166)

(356)

Total investments and other assets �������������������������������������������������������������������������������������������

29,98347,561

Total non-current assets �����������������������������������������������������������������������������������������������������������������

142,796

192,912

Total assets �����������������������������������������������������������������������������������������������������������������������������������������

¥325,042¥439,926

To ContentsLong-term loans receivable �������������������������������������������������������������������������������������������������������
Deferred tax assets ���������������������������������������������������������������������������������������������������������������������

22

COMSYS Holdings Corporation Annual Report 20192018

Millions of yen
2019

Notes payable, accounts payable for construction contracts and other �����������������������������������

¥ 59,749¥ 77,685

Short-term borrowings �������������������������������������������������������������������������������������������������������������������

106

8,543

Income taxes payable ���������������������������������������������������������������������������������������������������������������������

7,815

6,017

Advances received on construction contracts in progress ���������������������������������������������������������

2,873

4,045

Provision for warranties for completed construction �������������������������������������������������������������������

176

246

LIABILITIESCurrent liabilities:

Provision for loss on construction contracts ���������������������������������������������������������������������������������

548

1,005

Other current liabilities �������������������������������������������������������������������������������������������������������������������

11,563

18,583

Total current liabilities ���������������������������������������������������������������������������������������������������������������������

82,832

116,1255

3,212

Non-current liabilities:
Long-term borrowings �������������������������������������������������������������������������������������������������������������������
Deferred tax liabilities ��������������������������������������������������������������������������������������������������������������������

352

583

Deferred tax liabilities for land revaluation �����������������������������������������������������������������������������������

1,369

1,369

Retirement benefit liability �������������������������������������������������������������������������������������������������������������

7,263

13,508Provision for retirement benefits for directors (and other officers) ���������������������������������������������

271

622

Other non-current liabilities �����������������������������������������������������������������������������������������������������������

1,180

3,044

Total non-current liabilities �������������������������������������������������������������������������������������������������������������

10,441

22,340Total liabilities �����������������������������������������������������������������������������������������������������������������������������������

93,274

138,466

Share capital �����������������������������������������������������������������������������������������������������������������������������������

10,00010,000Capital surplus ���������������������������������������������������������������������������������������������������������������������������������

60,88391,549Retained earnings ���������������������������������������������������������������������������������������������������������������������������

201,329

223,261

NET ASSETS
Shareholders’ equity:

Treasury shares �������������������������������������������������������������������������������������������������������������������������������

(38,014)(20,539)

Total shareholders’ equity �������������������������������������������������������������������������������������������������������������

234,199

304,271

2,810

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities �������������������������������������������������������������������

3,795

Deferred gains or losses on hedges ���������������������������������������������������������������������������������������������

—(0)

Revaluation reserve for land ����������������������������������������������������������������������������������������������������������

(7,905)(7,905)

To Contents

Remeasurements of defined benefit plans �����������������������������������������������������������������������������������

30

(802)

Total accumulated other comprehensive income �����������������������������������������������������������������������

(4,079)(5,898)

Share acquisition rights �������������������������������������������������������������������������������������������������������������������

513

657

Non-controlling interests �����������������������������������������������������������������������������������������������������������������

1,134

2,428

Total net assets ���������������������������������������������������������������������������������������������������������������������������������

231,767

301,459

Total liabilities and net assets �������������������������������������������������������������������������������������������������������������

¥325,042¥439,926

23

COMSYS Holdings Corporation Annual Report 2019

ProfileCOMSYS Holdings Corporation and Consolidated Subsidiaries
Years ended March 31, 2018 and 20192018

Millions of yen
2019

Net sales �������������������������������������������������������������������������������������������������������������������������������������������������

¥380,024¥481,783

326,591

416,530

53,43365,253

Selling, general and administrative expenses ���������������������������������������������������������������������������������

23,08529,985

Operating profit �����������������������������������������������������������������������������������������������������������������������������������

30,34735,267

Interest income �����������������������������������������������������������������������������������������������������������������������������������

14

24

Dividend income ���������������������������������������������������������������������������������������������������������������������������������

227

442

Rental income from non-current assets �������������������������������������������������������������������������������������������

158

245

Other ���������������������������������������������������������������������������������������������������������������������������������������������������

248

358

Total non-operating income �������������������������������������������������������������������������������������������������������������

647

1,070

Eight Integrated
Business Groups

Cost of sales �������������������������������������������������������������������������������������������������������������������������������������������
Gross profits �����������������������������������������������������������������������������������������������������������������������������������������

President’s
Message

Consolidated Statements of Income

Non-operating income:

37

86

124

Provision of allowance for doubtful accounts ���������������������������������������������������������������������������������

117

—
105

76
288

267

Ordinary profit �������������������������������������������������������������������������������������������������������������������������������������

30,70636,071Gain on sales of investment securities ���������������������������������������������������������������������������������������������

087

Gain on sales of non-current assets �������������������������������������������������������������������������������������������������

16

52
5,159

Extraordinary income:30

75

Total extraordinary income ���������������������������������������������������������������������������������������������������������������

974

5,375

Loss on retirement of non-current assets �����������������������������������������������������������������������������������������

83

57

Impairment loss �����������������������������������������������������������������������������������������������������������������������������������

494

124

Loss on liquidation of business ���������������������������������������������������������������������������������������������������������

—432

Data recovery expenses ���������������������������������������������������������������������������������������������������������������������

—396

Loss on sale of businesses �����������������������������������������������������������������������������������������������������������������

—256

Extra retirement payments �����������������������������������������������������������������������������������������������������������������

102

105

Other ���������������������������������������������������������������������������������������������������������������������������������������������������

139

473

Total extraordinary losses �������������������������������������������������������������������������������������������������������������������

819

1,846

Profit before income taxes �����������������������������������������������������������������������������������������������������������������

30,861

39,600Current �������������������������������������������������������������������������������������������������������������������������������������������������

10,857

12,422

Deferred ���������������������������������������������������������������������������������������������������������������������������������������������

(440)

(899)

Extraordinary losses:

Income taxes:

Total income taxes �����������������������������������������������������������������������������������������������������������������������������

10,417

11,522

Profit �������������������������������������������������������������������������������������������������������������������������������������������������������

20,44428,077

Profit attributable to non-controlling interests �������������������������������������������������������������������������������

53

59

Profit attributable to owners of parent �������������������������������������������������������������������������������������������

¥ 20,390¥ 28,018

To Contents—

Other ���������������������������������������������������������������������������������������������������������������������������������������������������

Information—
927

Financial
Statements

Gain on bargain purchase �����������������������������������������������������������������������������������������������������������������
Reversal of allowance for doubtful accounts �����������������������������������������������������������������������������������

Corporate Social
Responsibility(CSR)

Other ���������������������������������������������������������������������������������������������������������������������������������������������������
Total non-operating expenses �����������������������������������������������������������������������������������������������������������

Business at a
Glance7

Rent expenses �������������������������������������������������������������������������������������������������������������������������������������

Topics /Corporate
GovernanceInterest expenses �������������������������������������������������������������������������������������������������������������������������������

Review ofOperations
and Outlook

Non-operating expenses:

24

COMSYS Holdings Corporation Annual Report 2019

Consolidated Statements of Changes in Equity
COMSYS Holdings Corporation and Consolidated Subsidiaries
Years ended March 31, 2018 and 2019

SharecapitalCapitalsurplusRetainedearnings¥10,000¥52,525¥186,195

Year ended March 31, 2018

Balance at beginning of period ���������������������������������������������������

Millions of yen
Shareholders’ equity
Total
Treasuryshareholders’sharesequity¥(41,028)¥207,692

Changes in items during period:
Dividends of surplus �������������������������������������������������������������

(5,082)(5,082)

Profit attributable to owners of parent �������������������������������

20,39020,390Purchase of treasury shares �������������������������������������������������
Disposal of treasury shares ���������������������������������������������������

244

Purchase of treasury shares of subsidiaries ������������������������

104(8,003)(8,003)

700

944
104

Purchase of shares of consolidated subsidiaries ���������������

—Changes of scope of consolidation �������������������������������������

(88)

Increase by share exchanges �����������������������������������������������

(88)

8,009

10,317

Reversal of revaluation reserve for land �����������������������������

(84)

18,326(84)

Net changes in items other thanshareholders’ equity �����������������������������������������������������������

—Total changes in items during period ���������������������������������

—

8,358

15,134

3,013

26,506

Balance at end of period �������������������������������������������������������������

¥10,000¥60,883¥201,329¥(38,014)¥234,199
Millions of yen

Year ended March 31, 2018

Balance at beginningof period�����������������������������������������

Valuationdifference
on availablefor-salesecurities

Deferred
gains orlosses onhedges¥2,666¥—

Accumulated other comprehensive income
Total
accumulated
Revaluation Remeasurements
otherreserveof defined comprehensive
for landbenefit plansincome¥(7,990)¥(650)¥(5,974)

Share
acquisitionrights

Noncontrollinginterests

Total net
assets

¥578

¥ 647

¥202,943

Changes in items during period:
Dividends of surplus ���������������

(5,082)

Profit attributable to ownersof parent �������������������������������

20,390Purchase of treasury shares ���(8,003)

Disposal of treasury shares �����

944

Purchase of treasury shares ofsubsidiaries ���������������������������

104

Purchase of shares of
consolidated subsidiaries �����

—Changes of scope of
consolidation �������������������������

(88)

Increase by share exchanges ���18,326

Reversal of revaluation
reserve for land ���������������������

(84)

To Contents

Net changes in items otherthan shareholders’ equity ���

1,129

—

84

681

1,895

(65)

486

2,317

Total changes in items
during period �����������������������

1,129

—

84

681

1,895

(65)

486

28,823

Balance at end of period �������������

¥3,795¥—¥(7,905)¥ 30¥(4,079)¥513¥1,134¥231,767

25

COMSYS Holdings Corporation Annual Report 2019

ProfileRetainedearnings

Balance at beginning of period ���������������������������������������������������

¥10,000¥60,883¥201,329¥(38,014)¥234,199

Changes in items during period:
Dividends of surplus �������������������������������������������������������������

(6,267)(6,267)

Profit attributable to owners of parent �������������������������������

28,01828,018

Disposal of treasury shares ���������������������������������������������������

360(8,011)(8,011)

985

1,346

Purchase of treasury shares of subsidiaries ������������������������

—Purchase of shares of consolidated subsidiaries ���������������

(9)

(9)
180

180

30,31324,50154,815

Reversal of revaluation reserve for land �����������������������������

—Net changes in items other thanshareholders’ equity �����������������������������������������������������������

——30,66521,931

17,47570,072¥10,000¥91,549¥223,261¥(20,539)¥304,271
Millions of yen

Deferred
gains orlosses onhedgesBalance at beginningof period����������������������������������������� ¥3,795¥—

Year ended March 31, 2019¥(7,905)¥ 30¥(4,079)

Share
acquisitionrights

Noncontrollinginterests

Total net
assets¥513¥1,134¥231,76

Corporate Social
Responsibility(CSR)

Valuationdifference
on availablefor-salesecurities

Accumulated other comprehensive income
Total
accumulated
Revaluation Remeasurements
otherreserveof defined comprehensive
for landbenefit plansincomeTopics /Corporate
GovernanceTotal changes in items during period ���������������������������������
Balance at end of period �������������������������������������������������������������

Review ofOperations
and Outlook

Changes of scope of consolidation �������������������������������������
Increase by share exchanges �����������������������������������������������

Business at a
GlancePurchase of treasury shares �������������������������������������������������

Eight Integrated
Business Groups

CapitalsurplusPresident’s
MessageSharecapitalYear ended March 31, 2019

Millions of yen
Shareholders’ equity
Total
Treasuryshareholders’sharesequityChanges in items during period:(6,267)

Profit attributable to ownersof parent �������������������������������

28,018(8,011)
1,346

Purchase of treasury shares ofsubsidiaries ���������������������������

—Purchase of shares of
consolidated subsidiaries �����

(9)
180

Increase by share exchanges ���54,815

Reversal of revaluation
reserve for land ���������������������

—Net changes in items otherthan shareholders’ equity ���

(984)

(0)

—

(833)

(1,818)

143

1,294

(380)

Total changes in items
during period �����������������������

(984)

(0)

—

(833)

(1,818)

143

1,294

69,691

Balance at end of period ������������� ¥2,810¥ (0)¥(7,905)¥(802)¥(5,898)¥657¥2,428¥301,459

To Contents

Changes of scope of
consolidation �������������������������

Information

Purchase of treasury shares ���Disposal of treasury shares �����

Financial
Statements

Dividends of surplus ���������������

26

COMSYS Holdings Corporation Annual Report 2019

Consolidated Statements of Cash FlowsCOMSYS Holdings Corporation and Consolidated Subsidiaries
Years ended March 31, 2018 and 2019

Cash flows from operating activities:
Profit before income taxes �����������������������������������������������������������������������������������������������������������������
Depreciation ���������������������������������������������������������������������������������������������������������������������������������������
Impairment loss �����������������������������������������������������������������������������������������������������������������������������������
Gain on bargain purchase�������������������������������������������������������������������������������������������������������������������
Amortization of goodwill �������������������������������������������������������������������������������������������������������������������
Loss on liquidation of business ���������������������������������������������������������������������������������������������������������
Loss on sale of businesses �����������������������������������������������������������������������������������������������������������������
Data recovery expenses ���������������������������������������������������������������������������������������������������������������������
(Decrease) increase in allowance for doubtful accounts �����������������������������������������������������������������
Increase (decrease) in retirement benefit liability ���������������������������������������������������������������������������
Interest and dividend income �����������������������������������������������������������������������������������������������������������
Interest expenses �������������������������������������������������������������������������������������������������������������������������������
Increase in trade receivables �������������������������������������������������������������������������������������������������������������
Increase in costs on construction contracts in progress �����������������������������������������������������������������
Increase in trade payables �����������������������������������������������������������������������������������������������������������������
Gain on sales of investment securities ���������������������������������������������������������������������������������������������
Loss on valuation of investment securities ���������������������������������������������������������������������������������������
Decrease (increase) in other assets ���������������������������������������������������������������������������������������������������
Increase in other liabilities �����������������������������������������������������������������������������������������������������������������
Other, net �������������������������������������������������������������������������������������������������������������������������������������������

To Contents

Interest and dividends received �������������������������������������������������������������������������������������������������������
Interest paid ���������������������������������������������������������������������������������������������������������������������������������������
Income taxes paid �����������������������������������������������������������������������������������������������������������������������������
Net cash provided by operating activities ���������������������������������������������������������������������������������������Cash flows from investing activities:
Net (increase) decrease in time deposits �����������������������������������������������������������������������������������������
Purchase of investment securities �����������������������������������������������������������������������������������������������������
Proceeds from sale of investment securities �����������������������������������������������������������������������������������
Purchase of shares of subsidiaries�����������������������������������������������������������������������������������������������������
Proceeds from sale of businesses �����������������������������������������������������������������������������������������������������
Purchase of property, plant and equipment ���������������������������������������������������������������������������������������
Purchase of intangible assets �����������������������������������������������������������������������������������������������������������
Proceeds from sales of property, plant and equipment �����������������������������������������������������������������
Loan advances �����������������������������������������������������������������������������������������������������������������������������������
Collection of loans receivable �����������������������������������������������������������������������������������������������������������
Purchase of insurance funds �������������������������������������������������������������������������������������������������������������
Proceeds from cancellation of insurance funds �������������������������������������������������������������������������������
Other, net �������������������������������������������������������������������������������������������������������������������������������������������
Net cash used in investing activities �������������������������������������������������������������������������������������������������Cash flows from financing activities:
Net increase (decrease) in short-term borrowings���������������������������������������������������������������������������
Proceeds from long-term borrowings �����������������������������������������������������������������������������������������������
Repayments of long-term borrowings ���������������������������������������������������������������������������������������������
Purchase of treasury shares ���������������������������������������������������������������������������������������������������������������
Proceeds from sales of treasury shares ���������������������������������������������������������������������������������������������
Purchase of shares of subsidiaries not resulting in change in scope of consolidation �����������������
Purchase of treasury shares of subsidiaries���������������������������������������������������������������������������������������
Dividends paid �����������������������������������������������������������������������������������������������������������������������������������
Dividends paid to non-controlling interests �������������������������������������������������������������������������������������
Repayments of finance lease obligations �����������������������������������������������������������������������������������������
Net cash used in financing activities �������������������������������������������������������������������������������������������������
Effect of exchange rate change on cash and cash equivalents ���������������������������������������������������
Net increase (decrease) in cash and cash equivalents �������������������������������������������������������������������Cash and cash equivalents at beginning of period �������������������������������������������������������������������������
Increase in cash and cash equivalents resulting from change in scope of consolidation �������
Increase in cash and cash equivalents resulting from merger �����������������������������������������������������������������
Increase in cash and cash equivalents resulting from share exchange ���������������������������������������Cash and cash equivalents at end of period �����������������������������������������������������������������������������������

2018

Millions of yen
2019¥ 30,861
5,866
494
—
888
—
—
—
(1,436)36(241)
7(2,510)(4,717)
535
(0)
—
1,106
3,137
1,085
35,114241(7)(6,516)
28,831¥ 39,600
7,444
124(5,159)
1,116
432
256
396
0
(78)
(467)
37
(22,600)(1,692)
8,256
(77)
22
(6,814)
1,934
592
23,326466(37)(14,790)
8,964

(94)
(155)
56
—
—
(13,139)(1,026)
26
(200)
718
(333)
435
(184)
(13,896)279(1,603)414(14)
83(9,460)(1,235)
608
(171)
162
(24)
54
(642)
(11,550)30—(6)(8,019)668—(3)(5,082)(2)(82)(12,499)
5
2,441
20,879316—
5,319¥ 28,957(1,205)500(1,282)(8,027)
1,072
(54)
—
(6,267)(2)(114)(15,382)(0)(17,967)
28,957163
75
16,549¥ 27,778

27

COMSYS Holdings Corporation Annual Report 2019

ProfileTen-Year Summary of Business Results and Financial Data
Years ended March 31

Orders Received / Net Sales
President’s
Message(Millions of yen)

600,000
505,558

400,000
297,769 295,851

10

11

12

335,632 316,092

327,981 331,341

336,973 328,631

331,986 320,654

13

14

15

16

370,198402,229
334,163

380,024

Eight Integrated
Business Groups

284,789 293,086

294,365 315,480

537,000 540,000
481,783

200,000

0■ Orders Received

17

18

19

20
(Forecast)■ Net Sales

Business at a
GlanceOperating Profit / Operating Profit Ratio(Millions of yen)

(%)
8.3%
7.1%

30,00027,570

8.4%
27,67422,54720,000

4.3%

3.7%

12,54011,785

10,000

7.4%

7.5%

23,84925,03635,2678.0%

38,00010
830,347

7.3%

7.0%

6

4.3%

4

12,592

0

10

11
■

12

13

14

15

16

17

18

19

0

20
(Forecast)

Operating Profit Ratio (Right Scale)Corporate Social
Responsibility(CSR)

Ordinary Profit / Profit Attributable to Owners of Parent(Millions of yen)

40,00036,071

30,00028,07830,70628,121

13,113

10,0000

10

1112,96916,38913,284

16,767

15,42014,485

7,173

12

13

14

15

16

17

18

19

20
(Forecast)■ Profit Attributable to Owners of Parent

Information■ Ordinary Profit

7,097

12,1409,543

25,50020,39020,000Financial
Statements

22,91438,50028,01825,341

24,223Topics /Corporate
Governance2■ Operating Profit (Left Scale)

Review ofOperations
and Outlook

40,000

Segmental Orders Received / Net Sales

600
505.5

400

200

0

327.9 331.3
43.0 40.3
52.8 52.4
39.1 44.7

336.9 328.6

192.9 193.8

1468.9 55.4
55.1 53.7
33.7 35.6

331.9 320.6
64.4 60.0

370.1
82.8

402.2
334.1

380.0

118.0 99.2

52.2 50.7
26.9 27.1

67.1
55.3
55.0
28.4
27.4

179.0 183.6

188.4 182.5

203.5 184.5

184.5 185.9

15

16

17

18

60.4 59.0
39.2 35.7■■ NTT Engineering Business ■■ NCC Engineering Business ■■ IT Solutions Business ■■ Social System-Related Business537.0 540.0
481.7

155.0 136.7

169.5 166.5

80.9 75.0
46.5 43.0

87.0 82.5
48.0 44.5

222.9 226.8

232.5 246.5

19

20(Forecast)

To Contents(Billions of yen)

28

COMSYS Holdings Corporation Annual Report 2019

Total Assets(Millions of yen)

500,000

439,926

400,000
325,042300,000
211,809200,000

237,436

228,135

240,602250,561

11

12

13

14

264,019

266,066

284,367

15

16

17

100,000
0

10

18

19

Net Assets / Shareholders' Equity Ratio(Millions of yen)

(%)

400,000

73.0%
71.7%

71.2%

300,000

71.6%

75

73.4%

71.1%

70.9%

67.7%

200,000

151,768

161,768

164,574

173,411

179,414

194,038

196,543

202,94370.8%
231,767

301,45967.8%

65100,000
0■ Net Assets (Left Scale)

10
■

11

12

13

14

15

9.4%

9.0%

16

17

18

19

Shareholders’ Equity Ratio (Right Scale)

Return on Equity (ROE) / Return on Assets (ROA)
(%)

12

10.6%

6.1%
4.7%

4
3.3%

0
Return on Equity (ROE)

10
■

4.4%

9.4%
7.9%

7.9%

8

■

6.7%
5.7%

6.5%

5.8%

7.3%

5.3%

6.3%

6.4%

4.2%
3.1%

11

12

13

14

1.30

1.31

1.32

15

16

17

18

19

1.24

1.21

1.18

1.17

1.10

15

16

17

18

19

Return on Assets (ROA)

Total Asset Turnover(Times)

2.0
1.5

1.38

1.33

1.0

To Contents

0.5
0

70

10

11

12

13

14

60

29

COMSYS Holdings Corporation Annual Report 2019

ProfileDividends per Share / Acquisitions of Treasury Shares / Consolidated Payout Ratio(Billions of yen)

80
60

36.2%

8.0

36.0%

8.0

7.5

27.1%

10

8.0

20.00 3.0

11

20.00

12

18.4%

37.9%

26.1%

5.0

28.0%

8
6
4

35.00

30.00

25.00

13

40.00

21.0%

60.00

50.00

8.0

2

14

15

16

■ Interim Dividend (Left Scale) ■ Year-End Dividend (Left Scale) ■ Acquisitions of Treasury Shares (Right Scale)

■

17

18

19

67.5%

66.8%

20

0

(Forecast)

Consolidated Payout Ratio

Eight Integrated
Business Groups

0

25.6%

5.0
18.7%
20.00 3.0

20.00

8.0
30.8%

5.0

40
20

10

75.00

President’s
Message(Yen)

Business at a
GlanceShareholder Return Ratio
(%)

120

85.6%

77.2%

77.7%

80

66.9%

58.3%

Review ofOperations
and Outlook

106.2%

66.2%

57.5%

48.7%

40

10

11

12

13

14

15

16

17

18

19

Topics /Corporate
Governance020(Forecast)

Expected value when there is no negative goodwill(Yen)(Yen)

250
200

100
50
0

55.18

1,289.57

1,238.66

1,199.29

1,848.33

1,764.13
136.75

1,000

55.50

11

500

12

13

14

15

16

17

18

19

20

(Forecast)■ Book-value per Share (BPS) (Right Scale)0

Information■ Primary Earnings per Share (EPS) (Left Scale)

2,000
1,500

129.96106.8273.92

101,682.70
142.72

1,514.73
1,401.05 136.08

198.13Financial
Statements

150

2,500

230.10 2,318.35
2,008.42
178.64

Corporate Social
Responsibility(CSR)

Primary Earnings per Share (EPS) / Book-value per Share (BPS)

Number of Employees

18,00016,70012,00010,012

9,758

9,798

9,625

9,931

9,994

10,224

11

12

13

14

15

16

17

8,407

11,581

6,000

0

10

18

19

To Contents(Persons)

30

COMSYS Holdings Corporation Annual Report 2019

Information

Investor Information■ Fiscal Year-End:
March 31, 2019
■ Annual Shareholders’ Meeting:June 25, 2019

■ Major Shareholders:
As of March 31, 2019
Shares held Percentage(Thousands) of total (%)

Shareholders

The Master Trust Bank of Japan, Ltd. (Trust Account)

26,964

19.12■ Common Stock:
Authorized: 580,000,000 shares
Issued: 141,000,000 shares

Japan Trustee Services Bank, Ltd. (Trust Account)

15,153

10.74

Trust & Custody Services Bank, Ltd.
(Investment Trust Account)

3,632

2.57

■ Number of Shareholders:
15,123

Nippon Life Insurance Company

3,247

2.30

Japan Post Bank Co., Ltd.

3,040

2.15

■ Date of Listing:
September 2003

COMSYS Holdings Employee
Shareholding Association

2,114

1.49

Japan Trustee Services Bank, Ltd.
(Trust Account No.5)

1,888

1.33

JP MORGAN CHASE BANK 385151

1,800

1.27

Sumitomo Realty & Development Co., Ltd.

1,661

1.17

Meiji Yasuda Life Insurance Company

1,554

1.10

■ Stock Exchange Listing:First Section of the Tokyo Stock Exchange(Securities code: 1721)■ Transfer Agent:
Mitsubishi UFJ Trust and Banking Corporation
Securities Department
1-1, Nikko-cho, Fuchu-shi, Tokyo 183-0044, Japan■ Auditor:
GYOSEI & CO.

■ Composition of Shareholders:
As of March 31, 2019

■ For Further Information on this Annual Report,■ Securities Companies

3.7%

Please Contact:
IR Department
Tel: +81-3-3448-7000 (direct)
Fax: +81-3-3448-7001
E-Mail: chd-ir@comsys.co.jp■ Financial Institutions

52.4%■ Domestic Companies

6.9%■ Stock Price Range / Monthly Trading Volume

To Contents(Yen)(Thousands of shares)

3,600

60,0003,000

50,0002,400

40,0001,800

30,0001,200

20,000600

10,0000017/4 17/5 17/6 17/7 17/8 17/9 17/10 17/11 17/12 18/1 18/2 18/3 18/4 18/5 18/6 18/7 18/8 18/9 18/10 18/11 18/12 19/1 19/2 19/3 (Month)■ ■ Stock Price (Left Scale)   ■ Monthly Trading Volume (Right Scale)■ Foreign Companies
and Individuals

13.4%■ Individuals

14.9%■ Treasury Stock

8.7%

31

COMSYS Holdings Corporation Annual Report 2019

ProfileCorporate Data

Corporate History

As of March 31, 2019

Name:

COMSYS Holdings Corporation
17-1, Higashigotanda 2-chome, Shinagawa-ku,
Tokyo 141-8647, Japan
URL:

http://www.comsys-hd.co.jp/english/
September 29, 2003
Paid-In Capital:¥10 billion
Number of Employees:

Directors and Audit and Supervisory Committee Members
As of June 25, 2019

(President and Representative Director of Nippon COMSYS Corporation)

Directors
Yoshihisa Omura(President and Representative Director of TSUKEN Corporation)(President and Representative Director of
SANWA COMSYS Engineering Corporation)

Akihiko Aoyama(President and Representative Director of
COMSYS JOHO SYSTEM Corporation)

Delisted from Osaka Stock Exchange (currently Osaka Exchange)
owing to its stock market integration with that of the Tokyo Stock
Exchange.

October 2010
Consolidation of TSUKEN Corporation effected.

June 2009
Minimum share purchase unit reduced from 1,000 shares to 100
shares.

April 2009
The information systems business related to software development
outsourcing was spun off from Nippon COMSYS Corporation to form
COMSYS JOHO SYSTEM Corporation.

April 2007
COMSYS Holdings Corporation converted COMSYS Shared Services
Corporation, previously a consolidated subsidiary of Nippon COMSYS
Corporation, into a wholly owned consolidated subsidiary in order toclarify its role as a common provider of business process outsourcing
services for the COMSYS Group.

Satoshi Tamamura

Hidenori Fukumoto(President and Representative Director of SYSKEN Corporation)

Hitoshi Kumagai
Kenichi Sato
Hidehiko Ozaki(): Concurrent positions held

April 2005
SANWA ELEC Co., Ltd. was renamed SANWA COMSYS Engineering
Corporation.

January 2005
The NTT Information Telecommunication Engineering Business of
SANWA ELEC Co., Ltd. was centralized at Nippon COMSYS
Corporation.

September 2004
COMSYS Holdings Corporation subscribed to a third-party allotmentof shares by SANWA ELEC Co., Ltd.

September 2003
COMSYS Holdings Corporation, a pure holding company, wasestablished and listed on the First Section of the Tokyo Stock
Exchange and the Osaka Securities Exchange in a three-way sharetransfer between Nippon COMSYS Corporation, Sanwa COMSYSEngineering Corporation, and TOSYS Corporation. Nippon
COMSYS Corporation and Sanwa COMSYS Engineering Corporation
were delisted concomitant with the establishment of COMSYS

Holdings Corporation.

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Outside Directors(Audit and Supervisory Committee Members)
Kenichi Narumiya
Masahiko Miyashita
Kazuyoshi Onohara
Kenichi Nakatogawa
Koichi Kawana

COMSYS Holdings Corporation converted Kokusai Densetsu Co., Ltd.
(now COMSYS WING Corporation) into a wholly owned subsidiarythrough a stock exchange, and made Kokusai Densetsu a wholly owned
subsidiary of Nippon COMSYS Corporation on the same day.

Information

Director(Full Time Audit and Supervisory Committee Member)
Koichiro Kamiwaki

October 2005

Financial
Statements(President and CEO of NDS Co.,Ltd.)

Corporate Social
Responsibility(CSR)

Shigemi Sakamoto

July 2013

Topics /Corporate
GovernancePresident and Representative Director
Takashi Kagaya

Changed from a company with an audit and advisory board to acompany with an audit and supervisory committee.

Review ofOperations
and Outlook

16,700 (Consolidated)

June 2017

Business at a
GlanceDate of Establishment:

Consolidation with NDS Co., Ltd., SYSKEN Corporation, andHokuriku Denwa Kouji Co., Ltd. was effected.
Eight Integrated
Business Groups

Head Office:October 2018

President’s
Message

COMSYS Holdings Information

32

COMSYS Holdings Corporation Annual Report 2019

Organization Chart
As of June 25, 2019

Nomination and Remuneration
Advisory Committee

Board of Directors
Audit and Supervisory Committee
President

Senior Management Committee

CSR Committee
Compliance Committee
Risk Management Committee
Personal Information Protection
and Administration Committee

Corporate
Planning
Department

Business
Expansion
Strategy OfficeIR
Department

Finance andAccounting
Department

GeneralAffairs
Department

Personnel
Department

Internal Control
and Audit
Department

Corporate Planning Unit

General Affairs Unit

Internal Control Office

Corporate Strategy Unit

Legal Unit

Internal Audit Office

Strategy Planning Unit

PR UnitCorporate Information UnitCSR Office

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