Year Ended March 31, 2001

Profile
Nippon COMSYS Corporation was established in 1951, during Japan’s postwar
turmoil, to undertake the rebuilding of the country’s communications infrastructure. That was
the year before Nippon Telegraph and Telephone Public Corporation was privatized,
becoming the firm we know today as Nippon Telegraph and Telephone Corporation(NTT). At that time, the primary function of COMSYS was to execute telecommunications
construction projects in support of NTT. The Company subsequently made a place for itself
in the industry on the basis of its successes in the postwar construction of Japan’s
telecommunications infrastructure, and has remained an industry leader to this day.
Because we recognize the importance of novel and creative thinking, each of ouremployees brings pride to his work, and can take satisfaction in the results of his efforts.
Further, by giving maximum freedom of expression to talent and ability, we havefostered an open and innovative corporate culture. In building this team of talented andcreative people, we at Nippon COMSYS Corporation are actively working to realize asplendid future, one flourishing with as-yet unborn possibilities.

Contents
Five-Year Financial Summary・・・・・・・・・・・・・・・・・・・・・・・・・ 1
To Our Shareholders・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 2
Our Medium-Term Management Plan ・・・・・・・・・・・・・・・・・・・・・ 3
Construction Flow for COMSYS’s Telecommunications Equipment ・・・・・・・ 4
Our Operations: an Overview ・・・・・・・・・・・・・・・・・・・・・・・・・ 5
An Introduction to Our New Businesses ・・・・・・・・・・・・・・・・・・・・ 7
Activities to Preserve the Earth’s Environment ・・・・・・・・・・・・・・・・・ 8
Financial Section (Non-Consolidated Basis) ・・・・・・・・・・・・・・・・・・ 9
Non-Consolidated Statements of Income (10 Years) ・・・・・・・・・・・・・・21
Non-Consolidated Balance Sheets (11 Years) ・・・・・・・・・・・・・・・・・22
Consolidated Subsidiaries and Affiliates ・・・・・・・・・・・・・・・・・・・・24
Group Companies ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・25
Comparison of Three Major Telecommunications Construction Companies in Japan ・・26
Stock Price Information ・・・・・・・・・・・・・・・・・・・・・・・・・・・27
Brief History of COMSYS ・・・・・・・・・・・・・・・・・・・・・・・・・・・28
Corporate Information ・・・・・・・・・・・・・・・・・・・・・・・・・・・・29

Cautionary Statement with Respect to Forward-Looking Statements
This Investors’ Guide contains forward-looking statements that reflect management’s views andassumptions in the light of information currently available with respect to certain future events,
including expected financial position, operating results and business strategies. These statements can be
identified by the use of terms such as “will,” “believes,” “should,” “projects,” “plans,” “expects” and similarterms and expressions that identify future events or expectations. Actual results may differ materially fromthose projected, and the events and results of such forward-looking assumptions cannot be assured. Any
forward-looking statements speak only as of the date of this Investors’ Guide, and COMSYS
assumes no duty to update such statements.
Factors that may cause actual results to differ materially from those predicted by suchforward-looking statements include, but are not limited to, unanticipated changes in demand for theCompany’s principal business, owing to changes in the economic conditions in the Company’s
principal markets; the impact of increased competition; uncertainties as to the results of theCompany’s research and development efforts and its ability to access and protect certain intellectual
property rights; and the impact of regulatory changes and accounting principles and practices.

Five-Year Financial Summary

Consolidated(Millions of yen)

New Orders Received during the YearNet Sales
Operating Income
Income before Income Taxes
Net Income
Total Assets
Shareholders’ Equity

1997/3

1998/3

1999/3

2000/3

2001/3

226,643
221,636
13,733
13,675
6,831
158,839
68,979235,923
225,313
14,34814,333
8,309
166,067
94,654

229,875
220,522
14,261
13,522
5,625
171,669
101,721228,518
231,750
15,55913,054
6,315
188,961
115,834

229,211222,220
11,6289,117
4,498
188,250
118,05559.15
595.7766.55
725.5942.97
765.7446.73
851.01

33.11
869.84

Net Sales

Operating Income

Consolidated
Non-Consolidated

Consolidated
Non-Consolidated

Consolidated/Non-Consolidated

Consolidated/Non-Consolidated(Million ¥)(Times)(Million ¥)(Times)250,000

1.20

17,5001.20

200,000

1.15

14,0001.15

150,000

1.10

10,5001.10

100,000

1.05

7,000

1.05

50,000

1.00

3,500

1.00

0.95

0

(Yen)

Primary Earnings per ShareBook Value per Share

Non-Consolidated(Millions of yen)

New Orders Received during the YearNet Sales
Operating Income
Income before Income Taxes
Net Income
Total Assets
Shareholders’ Equity

1997/3

1998/3

1999/3

2000/3

2001/3

225,147
220,590
13,582
13,397
6,267
154,246
65,096

234,877
224,103
14,061
14,041
7,611
160,561
90,101

228,838
219,764
13,877
12,755
5,075
166,002
96,635

223,789
226,146
13,626
10,781
5,818
171,802110,400

222,486
215,586
10,402
7,980
4,283
174,118
112,52954.27
562.2360.96
690.6838.78
727.4442.78
804.8631.27
822.32

0

97

98

99

00

01

98

99

00

01

0.95

Net Income

Income before Income Taxes
Consolidated
Non-Consolidated

97

Consolidated
Non-Consolidated

Consolidated/Non-Consolidated

Consolidated/Non-Consolidated(Million ¥)(Times)(Million ¥)(Times)

15,0001.20

10,0001.20

12,000

1.15

8,000

1.15

9,000

1.10

6,000

1.10

6,000

1.05

4,000

1.05

3,000

1.00

2,000

1.00

0.95

0

(Yen)

Primary Earnings per ShareBook Value per Share

Ratios of Consolidated to Non-Consolidated Performance(Times)1997/3

1998/3

1999/3

2000/3

2001/3

Net Sales
Operating Income
Income before Income Taxes
Net Income
Number of Consolidated Subsidiaries and Affiliates

1.00
1.01
1.02
1.09
2

1.01
1.02
1.02
1.09
2

1.00
1.03
1.06
1.11
2

1.02
1.14
1.21
1.09
8

1.03
1.12
1.14
1.05
14

0

97

98

99

00

01

97

98

99

00

01

0.95

1
I n v e s t o r s’ G u i d e 2001

To Our Shareholders

HIRONOBU TAKEUCHI, President

A Look at the Past Fiscal Year

Establishing Systems and Entering New Fields

A decline in orders received was projected for the fiscal year just past, as aresult of NTT’s reduced capital investments. However, in view of the expansion of
the information communications market and forecasts of economic recovery
the COMSYS Group as a whole strove for growth in revenues and profits.
However, the Japanese economy remained sluggish, and despite asignificant increase in non-NTT infrastructure-construction orders, the Company
recorded an overall decline in orders received for the fiscal year. Net sales were alsostagnant, although we received a large number of orders in the second half of the term.
In addition to the foregoing, competition for contracts had an adverse impact on
the Company’s profit ratios, with the result that we were unable to achieve ourgoal of revenue and profit growth. Nonetheless, and despite the extremely difficult
business environment, we are striving to meet that goal by March 2002.

To achieve a companywide expansion of orders received, COMSYS
merged its NTT and non-NTT sales operations in July 2000. To achieve further
efficiency in the unified application of its human resources and technologicalassets, the NTT and non-NTT operational arms were also integrated.
In April 2001, we reorganized Solutions Business Division, breaking off its sales
operations and bringing them into our Sales and Marketing Headquarters. This will allow
Total Business Solutions sales personnel access to all information coming into and out
of our other sales divisions, promoting the early development of a “high-value-added totalsolutions” business. Moving to meet the forecast diversification of customer
requirements, we are preparing to expand our current maintenance and upkeep
services to a total business solutions operation. In this connection, Engineering andConstruction Department III has been renamed the Customer Services Department, andnow has its new systems and organizations in place.
COMSYS is taking a wide view of the opportunities it faces, moving fromchallenge to challenge as it enters new fields of business and offers new services. We
have recently established a Business Development Department to support thiseffort, and to promote our participation in environmentally friendly business such as
wind power generation, we have established the Eco-Power Office.
This opening year of the 21st century is also a significant year for COMSYS, as itmarks the 50th anniversary of our founding. In August 2001, the construction of a newheadquarters building was completed. Our entire Company is active in its support of thehigh-order information society, and, as a comprehensive engineering firm of the
new era, we welcome the challenge of laying a sound cornerstone for the future.
COMSYS requests the continued support of its shareholders, clients,
business partners, and employees in these endeavors.

Outlook

COMSYS Selected
as Top IR Firm
In September 2000, COMSYS
was cited for having the best
investor relations program of any
firm in the construction industry by
the Securities Analysts Associationof Japan, indicating the degree towhich stock market analysts andinvestors have recognized our vigorous efforts at data disclosure. We
thank all who played a part in ourwinning this award, and pledge tocontinue the policies that led to it.

2
I n v e s t o r s’ G u i d e 2001

Over and above our goal of achieving growth in revenues and profits byMarch 2002, COMSYS is directing a great deal of effort into structural reforms
designed to build a base for expansion, and to allow us to ride the crest of thetsunami created by the IT revolution.
The first and most important element in this is technological expertise. In
addition to official certifications and vendor certifications, COMSYS has proprietary
technology and expertise accumulated over long years of experience. The sum of thesecapabilities is more than adequate to assure our survival, even under the present
adverse circumstances. To ensure the continuing soundness of the Company’s
existing technological expertise and know-how, of course, we are energeticallymastering new technologies and developing proprietary technologies.
The second element in our effort is competitiveness. We are employing ourcomprehensive technological capabilities to implement a system that will allow us to“realize a set profit through competitive pricing.”
The recent declining trend in the value of contracts is very severe, andsimple cost reduction through thrift and avoidance of waste is not a sufficient
response. We have embarked on a sweeping reevaluation of our operations, and areundertaking a complete restructuring of our personnel system.

Hironobu Takeuchi
President and Representative Director
July 2001

Our Medium-Term Management Plan

Our medium-term management plan, which came into effect in fiscal 2001, calls for us to achieve net sales of ¥320
billion by fiscal 2005. During that period, the telecommunications construction market is forecast to grow, and the IT
revolution will bring sweeping changes.
Demand for mobile telephone services has outstripped demand for fixed telephones, the rapid advance of information
communications technology is altering the face of the telecommunications industry, and information technology will be thecatalyst for major changes to the very structure of the information-based society and economy. NTT-related projects now makeup 60 percent of our total net sales. This percentage is forecast to shrink, and we are pursuing our entry into non-NTT
markets at a rapid pace. We are focusing on a new type of business, in which we offer systems and services tailored to theclient’s individual needs in the form of a solutions package.
Our medium-term management plan sets forth six key factors that establish new goals. These are: entering newmarkets with appropriate strategies, training and keeping highly skilled personnel, taking steps to rationalize management,
expanding and bolstering our subcontracting system, developing unique new technology, and developing our corporate culture.
These policies are designed to keep us from falling behind in the age of information technology, and to achieve flexible expansionof our operations. In this period of change, hesitation can put a firm behind the cutting edge in an instant. Despite the fact that
we are a leading company in our industry, these circumstances require us to face the risk to the Company’s continued survival.
To that end, we at COMSYS are engaged in a revolution of our own.

Japan’s Telecommunications Construction Market
NTT

Non-NTT

Trends in the Information Services Market
Information Services

Hardware Maintenance

Software Development

Performance Indicators
2001/3(Performance)

2006/3(Planned)

PercentchangeNTT Projects

1,291

1,150

0.89

Other Business

864

2,050

2.37

Total

2,155

3,200

1.48

Recurring Profit (¥100 million)

116

220

1.90

Net sales(¥100 million)

Recurring Profit Margin (%)
Number of Employees

5.4

6.9

—

3,588

3,940

1.10

Sales Goals by Sector
NTT “Outside” Projects
NTT “Inside“ Projects(¥100 million)(¥100 million)(¥100 million)

20,000250,000

35,00016,000200,000

28,00012,000150,000

21,0008,000

100,000

14,0004,000

50,000

7,000

0

0

0

Domestic Construction and Engineering
Information Systems
Overseas Construction

3
I n v e s t o r s’ G u i d e 2001

Construction Flow for COMSYS’s Telecommunications Equipment

Broadcast Satellite/Communications Satellite

Data Center

Radio Broadcasting System

LAN/WAN

Server/

HUB/RoBroadcasting Station

uter

Call Center
Business User
CTI

Broadcast Satellite/Communications Satellite Broadcasts

Solar Po
wer

Cable Broadcasting System

Facility
ATM SwitchGround Wave Broadcast

Cable Television Firm

Land Station
WDM E
quipment

Home User

Mobile Telephony Switching Station
Submarine Optical Fiber Cable
Home User

Land Station
SwitchHome User

WDM E
quipment

Microwave Transmitter

Telephone
FAX
PC

Radio Base Station
SwitchRelay Station

Toll on Trank Bldg.

Radio Telephony System

Junction Swich Bldg.

Route
r

Route
r

Mobile Telephone
PDC
W-CDMA
CDMA2000

Toll on Trank Bldg.

ServerCore Ro

uter
ServerLocal Swich Bldg.

uter
Route

r

Optical

Swich
Route
r

Home User
ADSL・FTTH

Fiber Cable

Cable Feeder Point

I n v e s t o r s’ G u i d e 2001

Internet Provider

Junction Swich Bldg.

Core Ro

Cable Feeder Point

4

Home User
FWA

Local Swich Bldg.
Swich

MobileTelecommunication
SystemSwitchWire-link Communication System

Our Operations: an Overview
Communications Infrastructure Projects“Outside” Projects
As the high-order information society continues to advance, thefocus of communications is shifting from voice to digital data. For thisreason, Japan needs to develop an Internet-provider network, beginningwith high-speed broadband access facilities. Since its founding in 1951,
reliable technological expertise has kept COMSYS in the forefront of thetelecommunications construction industry, and the Company has played asignificant role in the building of Japan’s communications infrastructure. In
this era, with the IT revolution progressing at an accelerating pace,
COMSYS is pursuing leading-edge technology and demonstrating aneagerness to take on these new challenges. At the same time, we arecontributing to the growth of the communications society.

Cable Engineering Works Project(installation of communications cables)
COMSYS is engaged in the design, installation, and testing of communications cable networks invarious locations, including cable systems linking thevarious NTT buildings and linking the facilities of othercommon carriers, and cable systems within intelligent
buildings. The Company is also linking family homes tovarious services using telephone lines. More thantelephone lines, the Company is engaged in thebuilding of optical-fiber, cable television, Internetprotocol, and other communications networks.

Cable-Tunnel Construction Project(underground tunnel construction)
This shows the laying of high-capacity
underground communications cables. Such projects
are complex, as urban areas lay not only communications cables underground, but also gas lines,
water lines, and various other infrastructure.
COMSYS’s high technological level allows theCompany to carry out high-level projects, and has
executed approximately one-third of all such
communications tunnel projects in Japan.

Conduit Line Construction Projectby the Open-Cut Method
Digging directly from the surface, COMSYS
installs CC BOX and Information BOX facilities.
Because telephone poles are eliminated, thesefacilities are more resistant to natural disaster, andcontribute to urban beautification.

“Inside” Projects

Switching System and Transmission Equipment Projects
COMSYS is engaged in the installation of switching systems and transmission equipment, together with the installation, connection, and maintenance ofcables, connectors, and other peripherals. We are building systems and facilities thatallow the error-free switching and long-distance transmission of the information thatcomes through telecommunications providers.

Electric Power Equipment Projects
To enable communications facilities to function smoothly, an infrastructure of
power generation facilities, battery-charging equipment, converters, cable connections, andmaintenance services is necessary. COMSYS is engaged in the construction andexpansion of this infrastructure, and is building electric power systems suited to supply thecommunications facilities and equipment of telecommunications firms.

5
I n v e s t o r s’ G u i d e 2001

Mobile Communications Projects

Information Systems

The Company is participating in the development of various
commercial systems, and has built a substantial track record in thedevelopment of business applications, network solutions, anddatabase solutions. We also propose, develop, and supply totalbusiness solutions, including infrastructure applications and control
systems, to NTT and other common carriers.
COMSYS is also producing programming for digital satellite
broadcast television. Digital broadcasting allows for two-way
information flow, which makes interactive programming possible,
and this latent capability will in the future become a reality.

The Company executes all phases of the construction of mobile telephone base stations,from selection of locations and negotiations of property rights, to the design, execution, and testing of
the stations themselves. Because base stations must be designed to suit and constructed in a wide
variety of environments, a high degree of technological expertise and specialized knowledge isrequired. For this reason, COMSYS is ideally suited to operate in the field of mobile
telecommunications projects. COMSYS is also expected to play a large role in the construction
required for full-scale implementation of next-generation IMT-2000 mobile telephone services.

A Steel Tower for a Mobile Telecommunications System
COMSYS has built the best track record in the industry forthe construction of steel towers for mobile telecommunications
systems. We are bringing our technology and experience to bearin the execution of tower projects in a number of locations,
including the roofs of the NTT Building and other high-rises.

A Mobile Telephone Base Station
In the suburbs, mobile telephoneantennae are usually free-standing towers. In
cities, they are usually located on theroofs of high-rise buildings. Over andabove the construction of base stations,
COMSYS offers integrated services that
Base station for a mobile include the installation of electric power
telecommunication
sources, transmitter equipment, andsystem (in a suburb)
other related facilities and equipment.
Antenna on a building roof for a mobile
telecommunication system (in a city)

6
I n v e s t o r s’ G u i d e 2001

Aiming a Microwave Antenna
The correct aiming of microwave antennae to ensure
the efficient transmission and reception of microwave signals is an
important element of our telecommunications infrastructure. A key
to winning these important contracts is the trust born ofexperience and a reputation for the ability to produce highquality work.

Test Operation of Switching Equipment
COMSYS has a comprehensive
contract for the design and construction ofthis mobile telephone facility, which will
include backward-compatible mobile
telephone equipment, IMT-2000-capableswitching systems and transmitter
equipment, as well as electric power
facilities.

COMSYS personnel preview a satellite-broadcast programwith the clients who ordered it.

A screen shot from one of the Company’s digital satellite broadcast programs.
Digital technology greatly increases the number of channels
available, leading to forecasts of expanded demand for programming.
COMSYS is positioning itself to take advantage of the business
opportunity this represents.

An Introduction to Our New Businesses

COMSYS is developing a series of new businesses, taking information technology as its key theme; and, as
it implements its mid-term management plan, the Company has made its entry into new fields an important
issue. To support the energetic development of the new possibilities born of our long years of operation in our
existing fields of business, as well as the new possibilities seen as we take a wider view that includes those areasthat extend beyond our existing operations as a comprehensive engineering firm, we have established theBusiness Development Division. This is part of our companywide effort to become a total business solutions provider.

Customer Services Department
Projects continue to emerge that involve PBX and LAN facilities and the replacement of our customers’ internal systems.
In this connection, the Company is engaged in the replacement of systems, the rewiring of offices, the installation of new
systems, and the expansion of existing systems. Together with this, we are providing support and maintenance forthese systems. Japan’s protracted economic doldrums have resulted in restrained capital investment, but demand formaintenance and expansion of existing facilities remains strong. COMSYS, therefore, has bolstered the capabilities of its
Engineering and Construction Department III, which previously handled these maintenance operations, redefined thedepartment’s mission, and renamed it the Customer Services Department. This is indispensable to total services inlarge-scale systems projects and maintenance. Many customers will not let a contract to a firm that does not offer the
support of a comprehensive maintenance system. COMSYS offers the benefits of 24-hour service and a nationwide
maintenance service network.
The Customer Services Department provides four capabilities: sales and marketing, maintenance and upkeep, a troublecall center, and network monitoring. This Department offers integrated services ranging from the construction ofsystems and the installation of switching equipment and system terminals, to maintenance and repair. We expect that ourability to offer total business solutions and the capabilities of our support staff will earn us a substantial share of this business.

Scope of Maintenance Responsibilities
User

Commercial
MarketOrdinary End
User Market

Business

TargetSystemLocation

IP NodeCommunications
Building
Internet Data
CenterInternet Service
Provider Interface User Residence

WAN
LAN

Large Building
User Premises

Sales and Marketing
NTT Sales Division, Government Sales Division

Operation

Maintenance

Access Engineering Division

NTT DoCoMo Sales Division, Corporate Sales Division
NTT Sales Division II, Customer Services Department

Network Engineering Division

NTT Sales Division II, Corporate Sales Division

Engineering and Construction Department I

Government Sales Division, Customer Services Department
Solutions Business Division

Customer Services Department

The Eco-Power OfficeBecause the Company’s environmental business hastaken its place with our other important operations,
COMSYS has established an Eco-Power Office within its
Architecture Department. This office will plan and promote
projects that are gentle on the environment. About three
years ago, we employed our expertise in steel-tower
construction to the building of a wind power generation
facility in the Souya Peninsula, Sarufutsu, Hokkaido,
erecting two 750 kW windmill-driven generators. In anotherproject, in the Shimokita Peninsula, Mutsuyokohama, Aomori Prefecture, we have started construction of two
900 kW generators. In that same prefecture’s Misawa City, we submitted a plan for another large project, andhave commenced a study of wind conditions.
Problems to be surmounted are not few, and include the balance between the cost of generation and theprice of electricity. However, saying also that the efficient use of natural power sources is the wave of the future, inFebruary 2001 the Agency of Natural Resources and Energy announced a goal of increasing such power from
300,000 kW to 3 million kW by 2010. A steady expansion of demand, therefore, can be expected.

Business Development Division
Beginning in June 2001, COMSYS will inaugurate LAN/WAN
construction services for small office/home office (SOHO) users,
Internet service providers (ISP), and other medium and smallscale users. To the present, it has been common knowledge
within the network construction field that obtaining different types ofcommercial services separately resulted in higher charges.
However, taking a completely new look at business flow, fromoutsourcing and schedule management to billing control,
maintenance, and other aspects, COMSYS has succeeded in
reducing the cost of service packages through integrated procedures spanning the entire service process. Unified controlof this entire system is exercised over the Web. This makes network construction so easy for our customers that we liken
it to a visit to a convenience store, and that’s what we call it in Japanese: LAN Konbini, our LAN Convenience Store service.
Through the actual operation of this system we will recognize and respond to increasingly specific needs withspecifically designed services and systems. In this way we will endeavor to earn our clients’ trust, while
gauging market permeation.

7
I n v e s t o r s’ G u i d e 2001

Activities to Preserve the Earth’s Environment

COMSYS recognizes environmental problems to be one of its most important management issues, andgives environmental business a prominent place in its operations. In June 2001 the Company acquired ISO-14001
certification, demonstrating our compliance with international environmental standards. Based on ourestablished basic policy on the environment and our action guidelines, we are cooperating with regionalsocieties to protect the global economy.

COMSYS’s Environmental Goals

1. Reducing electricity consumptionsTo reduce electricity consumption in our major buildings to 3 percent below its 1999 level by 2002.

2. Reducing office paper use

Basic Policy on the Environment
Nippon COMSYS Corporation, as a comprehensive telecommunications engineering firm, is
continuously engaged in the protection of the global environment, and is contributing to the building ofa future in which men and nature live in harmony.

sTo reduce paper consumption in our major buildings to 10 percent below its 1999 level by 2002.

3. Increasing paper recyclingsTo increase paper recycling in our major buildings to 70 percent by 2002.

Action Guideline
1. To reduce the burden on the environment represented by our business activities, we will include
environmental concerns and establish environmental goals for each of our construction projects, while
conducting continuous improvement of our environmental management systems.
2. We will comply with all environmental statutes and regulations.
3. To prevent pollution, we will in all our operations reduce and recycle industrial waste and, in our office
operations, we will practice resource and energy conservation and promoting green procurement.
4. We will achieve an enhanced awareness of environmental issues on the part of all our employees andeveryone concerned with our construction projects, and will establish strong, cooperative relationships with
regional societies.

4. Reducing and recycling industrial wastesTo achieve thorough sorting of industrial waste by expanding the role of on-site construction
offices in sorting, and thereby to enable reductions in industrial-waste generation, as wellas increased recycling of industrial waste.

5. Promoting concern for the environment in facilities design
sTo increase proposals for the use of facilities with less environmental impact.

6. Promoting green procurement practices
sTo expand green procurement of office consumables and supplies.

COMSYS’s Environmental Management System

7. Reducing the Company’s vehicle use
sTo reduce the Company’s vehicle ownership to 20 percent below its 1999 level by 2002.
sTo reduce the Company’s vehicle leasing to 5 percent below its 1999 level by 2002.

Continuous
improvement
Review ofmanagement

Establishingenvironmental policies(Action)(Policy)

8. Improving methods of handling soil excavated in telephone pole installationsTo improve procedures for handing soil excavated in telephone pole installation.

Assessment ofenvironmental impact
and planning

Inspection andcorrective measures(Check)Activity results andimplementation(Do)8
I n v e s t o r s’ G u i d e 2001

(Plan)

Financial Section (Non-Consolidated Basis)
Contents
Performance
Operating Results ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・10
Performance by Business Category ・・・・・・・・・・・・・・・・・・・・・・・・11
NTT Construction・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・12
Domestic Construction and Engineering ・・・・・・・・・・・・・・・・・・・・・・13
Overseas Construction, Information Systems ・・・・・・・・・・・・・・・・・・・・14
Key Financial Indicators
Profitability ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・15
Efficiency ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・16
Stability ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・17
Per Share Data ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・18
Per Employee Data ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・19
Other Data ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・20
Non-Consolidated Statements of Income (10 Years) ・・・・・・・・・・・・・・・・・21
Non-Consolidated Balance Sheets (11 Years) ・・・・・・・・・・・・・・・・・・・・・22
Consolidated Subsidiaries and Affiliates ・・・・・・・・・・・・・・・・・・・・・・・24
Group Companies ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・25
Comparison of Three Major Telecommunications Construction Companies in Japan ・・26

9
I n v e s t o r s’ G u i d e 2001

Performance
Operating Results

New Orders Received during the YearNet Sales

Gross Profits/Operating Income

Income before Income Taxes

Net Income

Gross Profits
Operating Income(Million ¥)(Million ¥)(Million ¥)(Million ¥)(Million ¥)250,000

250,000

35,00015,0008,000

200,000

200,000

28,00012,0006,400

150,000

150,000

21,000

9,000

4,800

100,000

100,000

14,000

6,000

3,200

50,00050,000

7,000

3,000

1,600

0

97

98

99

00

01

(Millions of yen)

0

97

98

99

00

01

0

0

97

98

99

00

01

0

97

98

99

00

01

97

98

99

00

01

1992/3

1993/3

1994/3

1995/3

1996/3

1997/3

1998/3

1999/3

2000/3

2001/3

New Orders Received during the Year

124,687

128,073

135,762

143,034

186,180

225,147

234,877

228,838

223,789

224,486

Net Sales

122,582

125,771

136,037

152,213

180,629

220,590

224,103219,764

226,146

215,586

Contract Backlog at End of Fiscal Year54,72757,02956,75447,57553,126

57,68368,457

77,53175,17478,705Gross Profits

13,616

13,658

16,63218,01821,96527,89027,83826,491

26,59923,804

Operating Income

3,551

3,929

5,698

7,042

8,544

13,582

14,061

13,877

13,626

10,402

Income before Income Taxes

3,729

4,071

5,759

7,127

8,092

13,397

14,041

12,755

10,781

7,980

Net Income

1,539

1,631

2,419

3,637

3,742

6,267

7,611

5,075

5,818

4,283

Note: For the purpose of supporting an affiliate in Thailand, a portion of construction orders received in FY March 2000 was assigned to the said company. As a result, our contract backlog at the end of FY March 2001 decreased by ¥3,369 million.

10
I n v e s t o r s’ G u i d e 2001

Orders Received by Business Category(Millions of yen)

1992/3

1993/3

Orders Received by Business Category
1994/3

1995/3

1996/3

1997/3

1998/3

1999/3

2000/3

2001/3“Outside” Projects“Inside” Projects(Million ¥)250,000

NTT Group Construction“Outside” Projects“Inside” Projects
Subtotal

43,57744,02487,601

47,11842,88290,00051,94049,264
101,204

55,72350,414
106,137

71,12360,060131,183

78,97678,164
157,140

74,03881,457
155,495

69,22173,810143,031

58,183 48,737
74,856 77,894
133,039 126,631

Overseas Construction
Domestic Construction and Engineering
Information Systems
Total

6,395
17,282
13,409124,687

7,504
18,948
11,621
128,073

1,982
20,732
11,844
135,762

4,059
18,86913,969143,034

8,780
31,19615,021
186,180

11,46841,05815,481
225,147

9,362
53,792
16,228234,877

4,044
63,845
17,918228,838

4,027
824
68,609 78,672
18,114 16,359
223,789 222,486

Overseas Construction
Information Systems
Domestic Construction and Engineering

200,000
150,000
100,000
50,000
0

92

93

94

95

96

97

98

99

00

01

00

01

Net Sales by Business Category

Net Sales by Business Category(Millions of yen)

1992/3

1993/3

1994/3

1995/3

1996/3

1997/3

1998/3

1999/3

2000/3

2001/3

NTT Group Construction“Outside” Projects“Inside” Projects
Subtotal

44,72446,02690,75049,096
40,76589,861

50,484
48,81399,29758,64652,407
111,053

70,494
59,119129,61379,30680,081
159,387

75,65874,339149,997

68,562
74,385
142,947

63,254 54,520
77,714 74,647
140,968 129,167

Overseas Construction
Domestic Construction and Engineering
Information Systems
Total

3,761
15,472
12,599122,582

3,738
19,467
12,705
125,771

4,274
20,944
11,522
136,037

8,729
19,392
13,039152,213

6,697
28,706
15,613
180,629

8,925
37,415
14,863
220,590

10,54547,476
16,085
224,103

7,850
52,411
16,556
219,764

3,007
1,314
64,560 68,973
17,611 16,132
226,146 215,586“Outside” Projects“Inside” Projects(Million ¥)250,000

Overseas Construction
Information Systems
Domestic Construction and Engineering

200,000
150,000
100,000
50,000
0

92

93

94

95

96

97

98

99

Contract Backlog at End of the Year, by Business Category

Contract Backlog at End of the Year, by Business Category(Millions of yen)

1992/3

1993/3

1994/3

1995/3

1996/3

1997/3

1998/3

1999/3

2000/3

2001/3(Million ¥)NTT Group Construction“Outside” Projects“Inside” Projects
Subtotal

29,288
5,703
34,991

27,3107,820
35,13028,766
8,271
37,037

25,843
6,278
32,121

26,472
7,219
33,691

26,142
5,302
31,444

24,522
12,42036,942

25,181
11,84537,026

20,1108,987
29,097

14,327
12,23426,56164,000Overseas Construction
Domestic Construction and Engineering
Information Systems
Total

7,227
9,461
3,048
54,727

10,9938,942
1,964
57,029

8,701
8,730
2,286
56,754

4,031
8,207
3,216
47,575

6,114
10,697
2,624
53,126

8,657
14,3403,242
57,683

7,474
20,656
3,385
68,457

3,668
32,0904,747
77,531

4,688
36,1395,250
75,174829
45,8385,477
78,705“Outside” Projects“Inside” Projects

80,000Overseas Construction
Information Systems
Domestic Construction and Engineering

48,00032,00016,000
0

92

93

94

95

96

97

98

99

00

Note: For the purpose of supporting an affiliate in Thailand, a portion of construction orders received in FY March 2000 was assigned to the said company. As a result, our contract
backlog at the end of FY March 2001 decreased by ¥3,369 million.

01
11

I n v e s t o r s’ G u i d e 2001

NTT Construction

Total Sales of NTT Construction/Percentage of Total Sales

Total Subscribers of Mobile Telephones“Inside” Projects“Outside” Projects

The NTT DoCoMo Group Subscribers

PHS Subscribers
Fixed Telephones
Total Mobile Telephone Subscribers

NTT Construction’s Percentage of Total Sales

Number of Subscribers by Carriers
As of March 31, 2001

NTT DoCoMo GroupNTT DoCoMo share(Million ¥)(%)(Ten thousand)(Ten thousand)(%)

165,000

75

7,000

4,000

60
TU-KA Group60

132,000

5,600

3,200

395
6.5%

48
997
16.4%

99,000

45

4,200

2,400

36

66,000

30

2,800

1,600

24

J-PHONEGroup

au GroupNTT
DoCoMo
Group

1,099
18.0%

33,000

1,400

15

800

3,603
59.1%

12
(Ten thousand)

0

0

92

93

94

95

96

97

(Ten thousand, except where noted)

Total Subscribers of Mobile Telephones

98

99

00

0

01

1992/3

1993/397

98

99

1994/3

00

01

0

97

1995/3

1996/398

99

1997/300

01

01998/3

1999/3

2000/3

2001/3

137

171

213

433

1,020

2,087

3,152

4,153

5,114

6,094

The NTT DoCoMo Group

84

102

132

220

493

1,096

1,798

2,389

2,936

3,603

Share of NTT DoCoMo (%)
PHS Subscribers

61.3
—

59.6
—

62.0
—

50.8
—

48.3
151

52.5
603

57.0
673

57.5
578

57.4
571

59.1
584

Fixed Telephones

5,621

5,760

5,878

5,988

6,104

6,146

6,038

5,847

5,545

5,209

(100 millions of yen, except where noted)

1996/3

1997/3

1998/3

1999/3

2000/3

2001/3

2002/3 (Forecast)

Planned Construction

19,90019,911

18,87017,27914,598

13,11648.0

10,310
54.0

37.0
1,900

42.0
1,900

Completion of Optical Fiber Cable Installation (%)

13.0

16.0

19.0

23.0

36.0

Investment in Optical Fiber Cable

1,900

2,310

2,100

2,440

2,400

Note: NTT Communications is not included under “Planned construction,” FY March 2002 (Forecast).

12
I n v e s t o r s’ G u i d e 2001

East JapanWest Japan

Domestic Construction and Engineering

Domestic Construction and Engineering Orders Received by Major Client

Total Sales of Domestic Construction and Engineering/Percentage in Total Sales
Sales of Domestic Construction and Engineering
Percentage of Domestic Construction and Engineering in Total Sales

As of March 31, 2001

(Million ¥)(%)

75,00040

60,00032

45,00024

30,00016

15,0008

OthersGeneral Contractors
Manufacturers

NTT Group

Government Agencies

New Common Carriers
0

92

93

94

95

96

97

98

99

00

01

0

Trends in Domestic Construction and Engineering Orders Received from Major Clients
General Contractors

Government Agencies

New Common Carriers

NTT Group

Manufacturers

Others

99

00

01
0

130

260

390

520

650
(¥100 Million)13
I n v e s t o r s’ G u i d e 2001

Overseas Construction

Information Systems
Total Sales of Information Systems/Percentage in Total Sales

Total Sales of Overseas Construction/Percentage in Total Sales
Sales of Overseas Construction

Sales of Information Systems

Percentage of Overseas Construction in Total Sales

Percentage of Information Systems in Total Sales(Million ¥)(%)(Million ¥)(%)

12,5007.5

20,00012.5

10,000

6.0

16,000

10.0

7,500

4.5

12,000

7.5

5,000

3.0

8,000

5.0

2,500

1.5

4,000

2.5

0

0

0

92

93

94

95

96

97

98

99

00

01

Major Overseas Projects Completed
Nigeria
Iraq
Egypt
ThailandTaiwanSri Lanka
Nepal
Thailand
KuwaitTanzania
ThailandPhilippines
Philippines
Philippines
ThailandPhilippine

Ibadan new local line project
Installation of telephone lines for 17 local exchanges
Supply and installation of telecommunication cable network in Ismailia and Suez
Installation of digital exchange equipment
Installation of highway traffic control system
Installation of local telephone lines in the Badulla and Anuradhapura regions
Installation of microwave telecommunications system (inside and remote)
Fifth local cable network installation for TOT in Bangkok and provinces
Installation of digital loop coil system in Farwaniah Exchange
Rehabilitation of telecommunications network in Dar es Salaam
Seventh local cable network for TelecomAsia and TT&T
Supply and installation of local cable network for Major Telecom Inc. in Mindanao
Supply and installation of OSP equipment and optical fiber cable for ICC in Manila
Installation of trunk lines and local network for GLOBE Telecom PHASE-2 in Manila and the provinces
The telephone expansion project to overcome short-term line shortage / B.E.1996-1998 for TOT (800K)
Supply contract for OSP & optical fiber cable (BAYANTEL 40K)

Overseas Projects in Progress (As of June 2001)
Philippines
Philippines

Supply and installation of local cable and junction network for GLOBE Telecom PHASE-4 in Manila
and the provinces
Turnkey outside plant network engineering services for EACP in Philippines

14
I n v e s t o r s’ G u i d e 2001

92

93

94

95

96

97

98

99

00

01

0

Net Sales of Information Service Industry in Japan
Source: Ministry of Economy, Trade and Industry, Research and Statistics Department,“Preliminary Report on the Survey of Selected Service Industries.”(¥100 Million)

110,000

88,00066,00044,00022,000

0

92

93

94

95

96

97

98

99

00

01

Key Financial Indicators
Profitability

Gross Profit Margin/Operating Margin

Pre-Tax Profit Margin

Net Profit Margin

Return on Equity (ROE)

Return on Total Assets (ROA)

Gross Profit Margin
Operating Margin
(%)

(%)

(%)

(%)

(%)

13.0

7.0

3.5

11.0

5.0

10.4

5.6

2.8

8.8

4.0

7.8

4.2

2.1

6.6

3.0

5.2

2.8

1.4

4.4

2.0

2.6

1.4

0.7

2.2

1.0

0

0

97

98

99

00

01

97

98

99

00

01

0

97

98

99

00

01

0

97

98

99

00

01

0

97

98

99

00

01

(%)

1992/3

1993/3

1994/3

1995/3

1996/3

1997/3

1998/3

1999/3

2000/3

2001/3Gross Profit Margin

11.11

10.86

12.23

11.84

12.16

12.64

12.42

12.05

11.76

11.04

Operating Margin

2.90

3.12

4.19

4.63

4.73

6.16

6.27

6.31

6.03

4.82

Pre-Tax Profit Margin

3.04

3.24

4.23

4.68

4.48

6.07

6.27

5.80

4.77

3.70

Net Profit Margin

1.26

1.30

1.78

2.39

2.07

2.84

3.40

2.31

2.57

1.99

Return on Equity (ROE)

5.36

5.35

6.78

7.56

6.47

10.08

9.81

5.44

5.62

3.84

Return on Total Assets (ROA)

2.12

2.06

2.52

3.28

2.93

4.28

4.84

3.11

3.44

2.48

Return on Equity (ROE) =Net Income
Shareholders’ Equity (Average of two year-ends)

Return on Total Assets (ROA) =Net Income
Total Assets (Average of two year-ends)

x100

x100

15
I n v e s t o r s’ G u i d e 2001

Efficiency

Total Assets/Shareholders’ Equity

Modified Working Capital

Turnover of Property and Equipment

Turnover of Total Assets

Total Assets
Shareholders’ Equity(Million ¥)(Million ¥)(Times)(Times)175,000

60,0002.0

9.0

140,000

48,0001.6

7.2

105,000

36,0001.2

5.4

70,00024,0000.8

3.6

35,00012,000

0.4

1.8

0

97

98

99

00

01

0

97

98

99

00

0

01

97

98

99

00

0

01

97

98

99

00

01

(Millions of yen, except where noted)

1992/3

1993/3

1994/3

1995/3

1996/3

1997/3

1998/3

1999/3

2000/3

2001/3

Total Assets

72,15386,382

105,450

116,617

138,610

154,246

160,561

166,002

171,802174,118

Shareholders’ Equity

29,401

31,55639,821

56,39559,27765,096

90,101

96,635

110,400

112,529

Modified Working Capital

17,174

26,902

27,26747,603

44,69342,971

57,79948,54453,27956,274

Turnover of Total Assets (times)

1.69

1.59

1.42

1.37

1.42

1.51

1.42

1.35

1.34

1.25

Turnover of Property and Equipment (times)

13.35

10.81

9.50

9.08

8.50

8.64

8.40

7.59

6.80

6.05

Modified Working Capital = (Current Assets - Accumulated Cost of Construction in Progress) - (Current Liabilities - Advances Received on Construction in Progress)
Turnover of Total Assets =Net Sales
Total Assets (Average of two year-ends)

Turnover of Property and Equipment =16
I n v e s t o r s’ G u i d e 2001

Net Sales
Property and Equipment (Average of two year-ends)

Stability

Equity Ratio

Fixed Assets-to-Equity Capital Ratio/Ratio of Fixed
Assets-to-Equity Capital and Long-Term Liabilities

Current Ratio/Quick Ratio
Current Ratio
Quick Ratio

Interest Coverage

Fixed Assets-to-Equity Capital Ratio
Ratio of Fixed Assets-to-Equity Capital and Long-Term Liabilities

(%)

(%)

(%)

(Times)

75

250

60

2,500

60

200

48

2,000

45

150

36

1,500

30

100

24

1,000

15

50

12

500

0

97

98

99

00

01

0

(%, except where noted)

97

98

99

1992/300

001

1993/3

1994/3

1995/3

97

98

99

00

1996/3001

1997/3

1998/3

97

1999/398

99

00

2000/301

2001/3Equity Ratio

40.75

36.53

37.76

48.36

42.77

42.20

56.12

58.21

64.26

64.63

Current Ratio

204.53241.72180.71309.57208.28181.05230.90199.13220.44226.67

Quick Ratio

194.34233.85176.79304.01204.80178.57228.28195.03211.22218.81

Fixed Assets-to-Equity Capital Ratio

61.12

65.44

61.79

46.94

57.64

59.89

47.28

50.97

51.01

49.25

Ratio of Fixed Assets-to-Equity Capital and Long-Term Liabilities

36.60

35.18

38.03

29.59

37.11

40.25

37.76

43.59

45.61

44.59

Interest Coverage (times)

7.18

7.46

9.57

16.09

308.802,017.57

2,114.00

1,318.91

2,012.14

399.54Current Ratio =Quick Ratio =Current Assets - Accumulated Cost of Construction in Progress
Current Liabilities - Advances Received on Construction in ProgressCash, Time Deposits, Marketable Securities and Trade Accounts Receivable
Current Liabilities - Advances Received on Construction in Progress

Fixed Assets-to-Equity Capital Ratio =Ratio of Fixed Assets-to-Equity Capital and Long-Term Liabilities =

x100

x100

Interest Coverage =Property, Equipment, Investments and Other Assets
x100
Shareholders’ Equity + Long-Term Liabilities

Operating Income + Interest and Dividend Income
Interest Expenses

Property, Equipment, Investments and Other Assets
x100
Shareholders’ Equity

17
I n v e s t o r s’ G u i d e 2001

Per Share Data

Primary Earnings per Share (EPS)

Cash Dividends per Share/Payout Ratio

Book Value per Share (BPS)

Common Stock Issued

Cash Dividends per Share
Payout Ratio
(¥)

(¥)

(¥)

(%)

(Thousand shares)

65

1,000

15

40

140,000

52

800

12

32

112,000

39

600

9

24

84,000

26

400

6

16

56,000

13

200

3

8

28,000

0

0

0

97

98

99

00

01

(Yen, except where noted)

0

97

98

1992/3

99

00

0

01

1993/3

1994/3

97

1995/398

99

1996/300

01

1997/3

1998/3

97

1999/398

99

2000/300

01

2001/3

Primary Earnings per Share (EPS)

21.52

22.78

26.62

37.69

32.91

54.27

60.96

38.78

42.78

31.27

Book Value per Share (BPS)

410.95430.19428.19539.09514.90562.23690.68727.44804.86822.32

Cash Dividends per Share

6.00

6.00

7.25

8.00

9.75

11.75

14.25

10.00

10.00

12.00

Payout Ratio (%)

27.89

26.99

27.87

23.01

30.00

21.71

24.20

25.96

23.54

38.23

Common Stock Issued (thousand shares)

71,54473,35393,000104,612

115,123

115,781130,453

132,841

137,166

136,842

Note: Primary Earnings per Share is based on the weighted average number of shares outstanding in the respective fiscal years. The others are based on the number of shares outstanding at the end of the respective fiscal years.

18
I n v e s t o r s’ G u i d e 2001

Per Employee Data

Net Sales per Employee

Pre-Tax Profit per Employee

Net Income per Employee

Number of Employees at Fiscal Year-End(Thousand ¥)(Thousand ¥)(Thousand ¥)(Persons)

65,000

4,000

2,500

4,000

52,000

3,200

2,000

3,200

39,000

2,400

1,500

2,400

26,000

1,600

1,000

1,600

13,000

800

500

800

0

97

98

99

00

0

01

0

97

98

99

00

01

97

98

99

00

0

01

97

98

99

00

01

(Thousands of yen, except where noted)

1992/3

1993/3

1994/3

1995/3

1996/3

1997/3

1998/3

1999/3

2000/3

2001/3

Net Sales per Employee

35,17934,82036,83640,241

46,65657,52859,921

59,906

61,34458,936

Pre-Tax Profit per Employee

1,070

1,127

1,560

1,884

2,090

3,493

3,754

3,477

2,924

2,181

Net Income per Employee

442

452

655

962

967

1,634

2,035

1,383

1,578

1,171

Number of Employees at Fiscal Year-End (persons)

3,541

3,683

3,703

3,862

3,881

3,788

3,692

3,645

3,728

3,588

Net Sales per Employee =Net Sales
Number of Employees (Average of two year-ends)

Pre-Tax Profit per Employee=

Net Income per Employee =Income before Income Taxes
Number of Employees (Average of two year-ends)
Net Income
Number of Employees (Average of two year-ends)

19
I n v e s t o r s’ G u i d e 2001

Other Data

Capital Expenditure

Research and Development Expenditure

Depreciation Charged against Property
and Equipment(Million ¥)(Million ¥)(Million ¥)

(%)

7,000

700

1,600

25

5,600

560

1,280

20

4,200

420

960

15

2,800

280

640

10

1,400

140

320

5

0

0

97

98

99

00

01

97

98

99

00

0

01

97

98

99

00

Percentage of Stock Held by Foreigners

0

01

97

98

99

00

01

(Millions of yen, except where noted)

1992/3

1993/3

1994/3

1995/3

1996/3

1997/3

1998/3

1999/3

2000/3

2001/3

Capital Expenditure

3,484

3,250

4,118

2,879

10,491

3,246

2,555

5,041

6,528

1,037

Research and Development Expenditure

500

500

500

500

650

650

670

660

601

418

Depreciation Charged against Property and Equipment

800

943

914

1,063

1,321

1,468

1,503

1,377

1,188

1,099

Percentage of Stock Held by Foreigners (%)

13.73

7.46

9.84

13.78

15.80

15.77

15.80

13.46

20.14

14.83

20
I n v e s t o r s’ G u i d e 2001

Non-Consolidated Statements of Income (10 Years)(Millions of yen)

Net Sales:
Construction contracts
Other
Cost of Sales:
Construction contracts
Other
Gross profits
Selling, General and Administrative Expenses
Operating income
Other Income (Expenses):
Interest and dividend income
Interest expenses
Other, net
Income before Income Taxes
Income Taxes
Net Income

1992/3

1993/3

1994/3

1995/3

1996/3

1997/3

1998/3

1999/3

2000/3

2001/3109,983
12,599122,582

113,066
12,705
125,771

124,515
11,522
136,037

139,174
13,039152,213

165,016
15,613
180,629

205,727
14,863
220,590

208,018
16,085
224,103203,208
16,556
219,764

208,535
17,611
226,146

199,454
16,132
215,586

98,304
10,662
108,966
13,616100,634
11,479112,113
13,658109,084
10,321
119,405
16,632

122,707
11,488134,195
18,018145,238
13,426
158,664
21,965

179,917
12,783
192,700
27,890182,819
13,446196,265
27,838179,419
13,854
193,273
26,491

184,300
15,247
199,547
26,599176,949
14,833
191,782
23,804

10,065
3,551

9,729
3,929

10,934
5,698

10,976
7,042

13,421
8,544

14,30813,582

13,777
14,061

12,614
13,877

12,973
13,626

13,402
10,402

1,255
(669)
(408)
178
3,729
2,190
1,539

981
(658)
(181)
142
4,071
2,440
1,631

993
(699)
(233)
61
5,759
3,340
2,419

1,053
(503)
(465)
85
7,127
3,490
3,637

720
(30)
(1,142)
(452)
8,092
4,350
3,742

541
(7)
(719)
(185)
13,397
7,130
6,267

737
(7)
(750)
(20)
14,041
6,430
7,611

631
(11)
(1,742)(1,122)
12,755
7,680
5,075

461
(7)
(3,299)(2,845)
10,781
4,963
5,818

785
(28)
(3,179)(2,422)
7,980
3,697
4,283

21
I n v e s t o r s’ G u i d e 2001

Non-Consolidated Balance Sheets (11 Years)(Millions of yen)

ASSETS
Current Assets:
Cash and time deposits
Marketable securities
Notes and accounts receivable-trade
Inventories:
Accumulated cost of construction in progress
Other
Other current assets
Less: Allowance for doubtful receivables
Total current assets
Investments and Other Assets:
Investment securities:
Subsidiaries and affiliates
Other
Long-term loans receivable:
Subsidiaries and affiliates
Other
Other assets
Less: Allowance for doubtful receivables
Total investments and other assets
Property and Equipment:
Land
Buildings and structures
Machinery and equipment
Construction in progress
Less: Accumulated depreciation
Total property and equipment
Deferred Charges:
Discount on notes payable
Total deferred charges

22
I n v e s t o r s’ G u i d e 2001

1991/3

1992/3

1993/3

1994/3

1995/3

1996/3

1997/3

1998/3

1999/3

2000/3

2001/3

14,925
2,675
21,738

11,1001,989
18,83916,631
5,680
22,08021,64911,931
26,14629,434
12,041
27,58125,852
17,013
41,671

21,171
15,41158,091

26,871
17,10656,817

21,366
11,88662,25818,746
15,81858,87618,03914,73064,442

17,552848
786(98)
58,426

20,580787
948(60)
54,183

19,848666
887(59)
65,733

19,796546
854(76)
80,84618,924421
915(74)
89,242

16,978
247
1,292
(105)
102,948

18,375
276
1,169
(131)
114,362

15,707
262
1,025
(128)
117,660

19,235
168
1,955
(117)
116,751

17,967
124
4,062
(111)
115,482

17,995
101
3,512
(123)
118,696

803
2,614

932
2,588

969
2,369

969
2,524

1,041
2,526

1,087
2,263

1,053
4,985

1,490
6,293

1,906
7,435

2,214
7,442

1,683
4,077

420
1,480
1,601
(14)
6,904

420
1,567
1,979
(14)
7,472

500
1,627
2,426
(15)
7,876

340
1,660
3,259
(14)
8,738

748
1,570
2,938
(15)
8,808

522
2,403
3,083
(6)
9,352

356
2,769
3,597
(20)
12,740

219
3,032
4,464
(18)
15,480

1,606
3,172
4,372
(23)
18,468

786
3,242
7,012
(83)
20,613717
3,434
11,019(1,099)19,831

4,527
2,739
3,858
364
(3,626)
7,862

6,485
3,321
4,598
315
(4,221)
10,498

7,771
4,928
5,054
34
(5,014)
12,773

9,711
5,339
5,109
999
(5,292)
15,866

10,092
7,244
5,812
702
(6,186)
17,664

14,696
10,4006,855—(7,137)
24,814

16,32010,5237,709
21(8,326)
26,247

16,452
10,554
7,887
1,513(9,283)27,123

17,821
13,275
8,207
1,828(10,348)
30,78322,157
14,958
6,184
2,034(9,626)35,70722,16015,071
5,969
2,649(10,258)
35,591——
73,192——
72,153——86,382——
105,450903
903
116,617

1,496
1,496
138,610897
897
154,246

298
298
160,561——
166,002——
171,802——174,118

(Millions of yen)

LIABILITIES AND SHAREHOLDERS’ EQUITYCurrent Liabilities:
Short-term bank loans
Current portion of convertible bonds
Current portion of notes and notes with warrants
Accounts payable:
Trade
Other
Advances received on construction in progress
Income taxes payable
Employees’ savings deposits
Warrants
Other current liabilities
Total current liabilities
Long-Term Liabilities:
Notes and notes with warrants
Convertible bonds
Accrued severance indemnities
Provision for losses from overseas investments
Other long-term liabilities
Total long-term liabilities
Shareholders’ Equity:
Common stock
Additional paid-in capital
Legal reserve
Retained earnings
Unrealized gain on securities
Total shareholders’ equity

1991/3

1992/3

1993/3

1994/3

1995/3

1996/3

1997/3

1998/3

1999/3

2000/3

2001/3

1,850
—
—

1,850
—
—

1,850
—
—

830
—
12,491

480
—
—

440
393
7,016

440
—
9,867

—
—
7,755

—
—
7,373

—
—
—

—
—
—

11,413
1,289
5,650
1,992
1,499
—
1,743
25,436

9,171
1,319
6,629
1,000
1,496
—
1,593
23,058

11,277
805
8,711
1,671
1,588
—
1,792
27,694

12,493
980
6,963
2,772
1,831
—
2,386
40,746

12,578
1,607
4,435
2,490
2,066
1,204
2,290
27,15021,675
2,774
5,257
3,649
—
2,396
2,934
46,534

29,108
2,228
4,372
6,195
—
2,351
2,827
57,38826,898
2,398
3,586
3,535
—
1,291
2,277
47,74032,939
1,863
4,038
3,748
—
917
2,132
53,01035,473
4,216
4,088
2,160
—
—
2,387
48,324

39,232
2,670
5,406
576
—
—
1,949
49,833

12,491
1,388
5,519
—
312
19,71012,491
1,004
5,940
—
259
19,694

19,506
1,004
6,117
—
505
27,132

16,883
859
6,188
—
953
24,883

24,638
444
6,399
—
1,591
33,072

24,995
—
6,663
—
1,141
32,79915,12810,0006,161—
473
31,762

7,373
9,418
5,876
—
53
22,720

—
9,409
5,356
1,592
—
16,357

—
9,312
379
1,442
1,945
13,078

—
9,312
2,444
—
—
11,756

6,145
3,395
823
17,683—28,046
73,192

6,338
3,587
873
18,603—29,401
72,153

6,846
4,092
923
19,695—31,55686,382

10,025
7,259
974
21,563—39,821
105,450

16,86914,096
1,049
24,381—
56,395
116,617

16,895
14,122
1,141
27,119—59,277
138,610

17,25014,521
1,271
32,054—65,096
154,246

26,592
24,904
1,511
37,094—
90,101
160,561

27,983
26,666
1,686
40,300—96,635
166,00231,14130,736
1,834
46,689—110,400
171,80231,14130,736
1,983
48,716(47)
112,529
174,118

23
I n v e s t o r s’ G u i d e 2001

Consolidated Subsidiaries and Affiliates

As of March 31, 2001
Fiscal year ended December 31, 2000
Company Name

Location

Paid-in
CapitalMillions of yen

Principal Business

Percentage
Owned%

Numberof Employees
Persons

Orders Received

Net Sales

Net Income*Millions of yen

Okoshi Denken Co., Ltd

Tokyo, Japan

60“Outside” construction

96.4

78

2,451

3,389

54

Tokyo Denwa Shisetsu Co., Ltd.

Tokyo, Japan40“Outside” construction

85.3

40

1,456

1,568

113

Tsuken Kiko Co., Ltd.

Tokyo, Japan

30“Outside” construction

100.0

51

1,800

1,815

53

COMSYS Techno Co., Ltd.

Tokyo, Japan

50

Software development

100.0

111

2,953

3,048

50

COMSYS Tec Co., Ltd.

Tokyo, Japan90“Outside” construction

81.7

183

6,135

6,572

–32

Tokyo Tsuken Co., Ltd.

Tokyo, Japan

54“Inside” construction

39.2

269

11,003

11,799502

Nitto Tsuken Co., Ltd.

Tokyo, Japan

60“Inside” construction

33.3

208

9,848

10,035

189

Taiei Seisakusho Co., Ltd.

Kanagawa, Japan

60

Design, manufacturing, and salesof telecommunications equipment

49.7

126

4,727

4,204

33

COMSYS Net Corporation

Tokyo, Japan

50“Inside” construction

52.0

53

2,315

2,299

79

COMSYS Tohoku Techno Co., Ltd.

Miyagi, Japan

50

Software development

76.0

42

824

826

–17

COMSYS Kanto Kita Engineering Co., Ltd.

Tochigi, Japan

20“Outside” construction

75.0

33

832

885

–14

COMSYS Shinetsu Engineering Co., Ltd.

Nagano, Japan

30“Outside” construction

100.0

40

771

1,264

9

COMSYS Kansai Engineering Co., Ltd.

Osaka, Japan

15“Outside” construction

68.0

23

1,937

2,127

25

COMSYS Kyusyu Engineering Co., Ltd.

Fukuoka, Japan

15“Outside” construction

100.0

41

1,708

1,225

–12

*Net income figures are prior to the application of deferred tax accounting.

24
I n v e s t o r s’ G u i d e 2001

Group Companies

The COMSYS GroupAt present, the COMSYS Group consists of 35 companies, including Nippon COMSYS. Of these, 23 are involved in “outside” projects, 3 are involved in “inside” projects,
2 are software development firms, 4 are overseas subsidiaries, and 3 are in other fields.
To allow us to respond to the rapid changes brought by the diversification of projected needs and the intensification of competition in this era of
information technology, we are striving throughout the entire group to take cost competition to new levels, and to manifest our ability to coordinate diverse
capabilities. All the companies of the COMSYS Group are engaged in continual strategic reorganization, while at the same time increasing the efficiency of our
project execution through adjustment of the division of responsibilities and territories. In addition, while fostering the multifaceted technologicalexpertise required by the IT era, the COMSYS group always strives to grow.

Business Category

Location

Company Name

1 “Outside” Projects Aomori

Business Category

Location

Company Name

Eto Kogyo Co., Ltd.

q “Outside” Projects Kanagawa Asahi Tsushin Co., Ltd.

\ “Inside” Projects

Tokyo

Nitto Tsuken Co., Ltd.

2 “Outside” Projects Tochigi

COMSYS Kanto Kita Engineering Co., Ltd.

w “Outside” Projects Nagano

CRT Co., Ltd.

a “Inside” Projects

Tokyo

COMSYS Net Corporation

3 “Outside” Projects Saitama

Jinwa Co., Ltd.

e “Outside” Projects Nagano

Odanaka Tsushin Co., Ltd.

s Software

MiyagiCOMSYS Tohoku Techno Co., Ltd.

4 “Outside” Projects Tokyo

Okoshi Denken Co., Ltd.

r “Outside” Projects Nagano

COMSYS Shinetsu Engineering Co., Ltd.

d SoftwareTokyo

COMSYS Techno Co., Ltd.

5 “Outside” Projects Tokyo

Tsuken Kiko Co., Ltd.

t “Outside” Projects Niigata

Nihonkai Tsushin Kensetsu Co., Ltd.

f Manufacturer

Kanagawa Taiei Seisakusho Co., Ltd.

6 “Outside” Projects Tokyo

Tokyo Denwa Shisetsu Co., Ltd.

y “Outside” Projects Osaka

Yashiro Tsushin Kensetsu Co., Ltd.

g Leasing Company

Tokyo

COMSYS Tsusan Co., Ltd.

7 “Outside” Projects Tokyo

Nisshin Denwa Setsubi Co., Ltd.

u “Outside” Projects Osaka

Shin Osaka Tsuken Co., Ltd.

h Trading Company

Tokyo

COMSYS Business Service Co., Ltd.

8 “Outside” Projects Tokyo

Nippo Kensetsu Kogyo Co., Ltd.

i “Outside” Projects OsakaCOMSYS Kansai Engineering Co., Ltd.

9 “Outside” Projects Tokyo

Sanyo Co., Ltd.

o “Outside” Projects Tokushima Tokushima Tsushin Kensetsu Co., Ltd.

“Outside” Projects Philippines COMSYS Philippines, Inc.

0 “Outside” Projects TokyoCOMSYS Tec Co., Ltd.

p “Outside” Projects Fukuoka

COMSYS Kyushu Engineering Co., Ltd.

“Outside” Projects Malaysia

CMC Engineering SDN. BHD.

- “Outside” Projects Tokyo

Kokusai Densetsu Co., Ltd.

[ “Outside” Projects Okinawa

Ryukyu Tsushin Koji Co., Ltd.

“Outside” Projects Thailand

Thai COMSYS & Jackson Co., Ltd.

] “Inside” Projects

Tokyo Tsuken Co., Ltd.

“Outside” Projects Thailand

COMSYS Thailand Co., Ltd.

= “Outside” Projects Kanagawa Tsushin Densetsu Co., Ltd.

Business Category

LocationTokyo

Company Name

— Overseas Affiliates —25
I n v e s t o r s’ G u i d e 2001

Comparison of Three Major Telecommunications Construction Companies in Japan

Operating Income

Net Sales
Nippon COMSYSKYOWA EXEO

Net Income

Income before Income Taxes

Nippon COMSYSKYOWA EXEODAIMEI TELECOM ENGINEERINGDAIMEI TELECOM ENGINEERING

Nippon COMSYSKYOWA EXEO

Return on Equity (ROE)Net Income per Share

Nippon COMSYSKYOWA EXEODAIMEI TELECOM ENGINEERING

Nippon COMSYSKYOWA EXEODAIMEI TELECOM ENGINEERING

Nippon COMSYSKYOWA EXEODAIMEI TELECOM ENGINEERING(Million ¥)(Million ¥)(Million ¥)(Million ¥)

(¥)

(%)

245,000

15,00015,000

8,000

70.00

13.0

196,000

12,00012,000

6,400

56.00

10.4

147,000

9,000

9,000

4,800

42.00

7.8

98,000

6,000

6,000

3,200

28.00

5.2

49,000

3,000

3,000

1,600

14.00

2.6

0

97

98

99

00

01

0

97

98

99

00

0

01

97

98

Net Sales
Nippon COMSYSKYOWA EXEODAIMEI TELECOM ENGINEERING*

01(Millions of yen)
1998/3

1999/3

2000/3

2001/3

220,590204,206
93,095

224,103
210,454
91,207219,764
218,564
51,984226,146
204,989
101,959

215,586
190,317
98,195(Millions of yen)

1997/3

1998/3

1999/3

2000/3

2001/3

13,582
10,573
3,683

14,0619,108
3,228

13,877
11,028
2,958

13,626
10,3185,512

10,402
7,507
3,455

1997/3

1998/3

1999/3

2000/3

2001/3

13,397
10,011
3,462

14,041
7,732
3,262

12,755
8,609
2,554

10,781
3,951
4,250

7,979
6,604
2,570

Income before Income Taxes
Nippon COMSYSKYOWA EXEODAIMEI TELECOM ENGINEERING*

00

1997/3Operating Income
Nippon COMSYSKYOWA EXEODAIMEI TELECOM ENGINEERING*

99(Millions of yen)

0

97

98

99

00

01

0

97

98

99

I n v e s t o r s’ G u i d e 2001

01

0

97

98

99

Net Income
Nippon COMSYSKYOWA EXEODAIMEI TELECOM ENGINEERING*(Millions of yen)
1999/3

2000/3

2001/3

6,267
4,831
1,512

7,611
4,002
1,332

5,075
3,611
904

5,818
1,850
2,297

4,283
3,331
1,325
(Yen)

1997/3

1998/3

1999/3

2000/3

2001/3

54.27
45.26
39.69

60.96
37.47
34.84

38.78
33.80
23.64

42.78
17.32
56.52

31.27
31.17
30.96

1997/3

1998/3

1999/3

2000/3

2001/3

10.1
11.9
8.4

9.8
9.1
7.0

5.4
7.6
4.6

5.6
3.7
9.8

3.8
6.5
4.8

Return on Equity (ROE)
Nippon COMSYSKYOWA EXEODAIMEI TELECOM ENGINEERING*

01

1998/3Net Income per Share
Nippon COMSYSKYOWA EXEODAIMEI TELECOM ENGINEERING*

00

1997/3(%)*DAIMEI TELECOM ENGINEERING changed the end of its fiscal year from September to March as of fiscal 1998. Accordingly, the company’s fiscal year that ended in March 1999 is a period of only six months.

2600

DAIMEI TELECOM ENGINEERING(Source: Company business reports)

Stock Price Information

Common Stock Price Range

Trading Volume(¥)(Thousand shares)

3,000

350,000

2,400

280,000

1,800

210,000

1,200

140,000

600

70,000

0

92

93

94

95

96

97

98

99

00

1992/3High Price

1,750

Low Price

830

Common Stock Price Range (¥)

Trading Volume (thousand shares)

28,385001

1993/3988*1,130460* 901
105,119

1994/3

1,570
930
343,329

1995/3

1,620*1,2801,170*1,180116,184

92

93

94

95

96

97

98

99

00

01

1996/3

1997/3

1998/3

1999/3

2000/3

2001/3

1,450

1,560

2,020

1,710

2,700

2,370

980

1,190

1,240

1,281

1,420

1,636

92,776

128,401

144,82085,70896,361

94,043Note 1. The numbers above are based on Tokyo Stock Exchange First Section figures.
Note 2. Stock price data marked with an asterisk reflect conditions after a stock split.

27
I n v e s t o r s’ G u i d e 2001

Brief History of COMSYS

Dec. 1951
Mar. 1952

Founded as The Nippon Telecommunications

Apr. 1976

Construction Co., Ltd. (NTK).

Mar. 1982

Won first contract for cable-laying and machinery
Aug. 1982

As Japan’s only firm with top certifications in cable laying,Jun. 1953

Won contract for Japan’s first fiber-optic cableinstallation project.

machinery installation, and radio facilities projects,
designated approved contractor by Nippon Telegraph andEstablished our Hokkaido, Tohoku, Hokuriku, Tokai,
Chugoku, Shikoku, and Kyushu Branches.

installation.
Aug. 1952

Increased paid-in capital to ¥2.5 billion.

Our first Head offices building (Dec. 1951)

Apr. 1984

Established our Niigata Branch.

Jul. 1990

Changed our name from The Nippon

Telephone Public Corporation (now NTT).

Telecommunications Construction Co., Ltd. to Nippon

Won contract for cable installation at a microwave telecommunications relay station as part ofCOMSYS Corporation.

a project linking Tokyo, Nagoya, and Osaka.

Jul. 1990

Established our Hokuriku Branch.

Sep. 1953

Established our Osaka Branch (now our Kansai Branch).

Feb. 1991

Certified as comprehensive contractor for telecommunications

Sep. 1957

Established our Nagano Branch (now our Shinetsu Branch).

Sep. 1959

Orders received break ¥10 billion.

Dec. 1961

Completed our 100th microwave station.

Jul. 1962

Increased paid-in capital to ¥300 million.

Cable conversion project (1978)

construction projects by NTT.
Mar. 1992

Won Japan’s first contract under the Rapid Reconstruction Project in Kuwait
following the Gulf War.

The Bangkok cable project (Dec. 1965)

Mar. 1994

Increased paid-in capital to ¥10 billion.

Mar. 1997

Orders received and net sales exceeded ¥200 billion.
Increased paid-in capital to ¥20 billion.

Jul. 1962

Listed on the Tokyo Stock Exchange, Second Section.

Nov. 1963

Won our first contract for a Shield Tunneling Method project.

Jul. 1997

Dec. 1965

Won our first overseas contract (Bangkok).

Aug. 1999

Increased paid-in capital to ¥30 billion.

Aug. 1970

Established our Urawa Branch (now our Kantonaka

Apr. 2000

Established our Fukushima, Takamatsu, and Okinawa Branches.

Branch).

Jul. 2000

Developed the Tuned Rotary-Mass Damper jointly with Tokai University.

Sep. 1970

Won a contract for a satellite-communication Earth station.

Sep. 2000

Developed “SweeCOM,”a revolutionary negative pressure and absorption cable

Jul. 1972

Established our Yokohama Branch (Now ourinstallation system, for the efficient laying of fiber-optic cable.

Kantominami Branch).

Aug. 2001

Feb. 1972

Listed on the Osaka Stock Exchange, Second Section.

Nov. 1972

Listed on the First Section of the Tokyo and Osaka Stock Exchanges.

Satellite communications project (Sep. 1970)

Dec. 1972

Increased paid-in capital to ¥1.5 billion.

Jul. 1973

Established our Akita and Utsunomiya Branches (now our Tochigi Branch).

28
I n v e s t o r s’ G u i d e 2001

Completed our new headquarters building at 17-1, Higashigotanda 2-chome,
Shinagawa-ku, Tokyo.

Corporate Information
Corporate Profile

Investor Information

As of March 31, 2001

As of March 31, 2001

Trade Name
Address
Telephone
Facsimile
Establishment
Paid-in Capital
Stock Listings
Representative
Number of Employees
Net Sales

Nippon COMSYS Corporation
17-1, Higashigotanda 2-chome
Shinagawa-ku, Tokyo 141-8647, Japan
81(3)3448-7000
81(3)3448-7001
December 1951
¥31,140 million
Common Stock-Tokyo, Osaka
President
Hironobu Takeuchi
3,588¥215,586 million

Businesses
Telecommunications Facilities Business
Cable works (optical fiber cable laying, burying telephone lines, etc.)
Civil engineering works (underground conduit lines,
manholes and cable-tunnel construction, etc.)
Switching works (digital telephone switch-boards, etc.)
Transmission wireless works (digital/micro communications
facilities, etc.)
Mobile communications works (mobile wireless base stations, etc.)
Electric Facilities BusinessCommunications power supply works(transformer, generation, and storage-battery facilities)
General electrical facilities works
Civil Engineering-Related Business
General civil engineering works
Construction of multi-use underground cable conduit facilities (C·C·BOX)
Water supply and sewage facilities works
Land development
Surveying
Building Construction and Real Estate-Related Business
Building construction and ancillary facilities works
Land sales, purchase and intermediation
Piping works

Information-Related Business
Development, commissioning and sales of all types of software
Dispatch of data processing engineers
Planning, design, construction and maintenance of intelligent
buildings and systems
Commissioning and construction of data communications
systems (LAN, CATV, etc.)
Commissioning, construction and maintenance of network
systems, centered on PBX
Systems integrator
Sales Network
Head OfficeWestern Japan Headquarters
Branches
Hokkaido/Tohoku/Akita/Fukushima/Kantominami/Kantonaka
Tochigi/Shinetsu/Niigata/Tokai/Hokuriku/Kansai/Chugoku/Shikoku
Takamatsu/Kyushu/Okinawa
Overseas
Bangkok Liaison Office
Sales Offices
Tohoku Area
Aomori/Morioka/Yokote/Akitakenhoku/Oomagari/Yamagata
Kanto Area
Urawa/Kawagoe/Kumagaya/Oyama/Mito/Tsuchiura/Takasaki
Koshigaya/Chiba/Urayasu/Chiyoda/Shinjuku/Setagaya/Nakano
Suginami/Arakawa/Itabashi/Adachi/Edogawa/Tama/Kawasaki
Yokosuka/Shonan/Zama
Chubu Area
Joetsu/Chuetsu/Fukui/Toyama/Kofu/Matsumoto/Toshin/Kiso
Shizuoka/Ueda
Kinki Area
Kitaosaka/Higashiosaka/Minamiosaka/Kobe/Kyoto/Shiga
Chugoku Area
Okayama/Matsue/Yamaguchi/Tottori
Shikoku Area
Minamihoribata/Kochi/Tokushima
Kyushu Area
Kitakyushu/Kumamoto/Oita/Kagoshima

Fiscal Year-End
Annual Shareholders’ Meeting
Common Stock

March 31, 2001
June 28, 2001
Authorized :249,665,000 shares
Issued :136,842,252 shares
Number of Shareholders 5,753
Date of Listing July 1962
Stock Exchange Listing First Section of Tokyo Stock
Exchange and Osaka
Securities Exchange
Transfer Agent The Mitsubishi Trust andBanking Corporation
Securities Department
11-1, Nagatacho 2-chome
Chiyoda-ku, Tokyo 100-0014
Auditor O-Yu Kyodo Office

Major Shareholders
Company Name

Share Held(Thousands)

Percentageof Shares
Outstanding

Japan Trustee Services Bank, Ltd. (Trust Account)

15,894

11.61%The Mitsubishi Trust and Banking Corp. (Trust Account)

9,276

6.77

The Toyo Trust and Banking Co., Ltd. (Trust Account)

6,615

4.83

Fujikura Ltd.

5,212

3.80

Sumitomo Electric Industries, Ltd.

5,166

3.77

The Furukawa Electric Co., Ltd.

5,166

3.77

Nippon Life Insurance Company (Pension Trust Account)

4,595

3.35

Nippon Life Insurance Company

2,839

2.07

The Chuo Mitsui Trust & Banking Co., Ltd. (Trust Account)

2,683

1.96

The Chase Manhattan Bank, N.A. London

2,500

1.82

29
I n v e s t o r s’ G u i d e 2001

17-1, Higashigotanda 2-chome
Shinagawa-ku, Tokyo 141-8647, Japan
URL http://www.comsys.co.jp
Public Relations Office
TEL. 03-3448-7000
FAX. 03-3448-7001

Printed on paper certified as recycled by the Eco Mark Office of the Japan Environment Association.