Presentation of Performance
Fiscal Year Ended March 31, 2022

May 20, 2022

Contents
I. Overview of Performancefor the Fiscal Year Ended March 31, 2022
1. Highlights of Performance
2. Details of Orders Received by Segment
3. Details of Net Sales by Segment
4. Details of Operating Profit
5. Status of Contract Backlogs

Ⅲ. Business Environment and Business Strategy

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6
7
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Ⅱ. Business Targets
for the Fiscal Year Ending March 31, 2023
1. Business Targets for the Fiscal YearEnding March 31, 2023
2. Order Targets by Segment
3. Sales Targets by Segment
Progress of COMSYS VISION
4.
NEXT STAGE 2023

1. Business Strategy of COMSYS Group2. Market Trends for NTT Fixed-Line Related Business3. Trends in NTT Fixed-Line Related Business
4. Status of 5G Rollout at Telecommunications Carriers
5. Trends in NTT Mobile Business6. Trends in NCC Business7. Trends in IT Solutions Business

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12
13

8. Business Expansion in IT Solutions Business (Examples)
9. Human Resources Strategy in IT Solutions Business
10. Trends in Social System-Related Business
11. Growth Strategy for Renewable Energy Business
12. Business Expansion through M&A
13. Promotion of Digital Transformation
14. Promotion of ESG
15. Promotion of TCFD

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25
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27
28
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Ⅳ. Shareholder Returns Policy
1. Shareholder Returns Policy(Dividends and Acquisition of Treasury Shares)

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31

I. Overview of Performancefor the Fiscal Year Ended March 31, 2022

I-1. Highlights of Performance
Achieved all-time high net sales and operating profit• Although orders received in the NCC business were strong, orders received decreased both year on year and compared with the target
due to the decline from the high levels of the previous fiscal year in NTT/IT/Social-System related businesses.
• Net sales increased significantly both year on year and compared with the target due to steady completion of contract backlogs.
• Operating profit increased year on year and basically met the target due to the growth in sales.
FY March 2022
Performance

Comparisons with
the Previous Term

Comparisonswith Target(Unit: ¥100 million)

Orders Received

5,570

-294

-129

Net Sales

5,890

＋257

+90

Operating Profit

429

+13

-0

Operating Margin

7.3%-0.1p.p.

-0.1p.p.

Notes. p.p. = percentage points4I-2. Details of Orders Received by Segment
Although orders received were strong in the NCC business,there was a decline from the high levels of the previous fiscal year in other businesses.
• NTT Engineering business: Orders received exceeded the target despite a significant decline year on year due to decreases in orders
in the access (AC) business (high-speed wireless and general construction) and the mobile (MB) business (4G).
• NCC Engineering business: Orders received increased year on year and exceeded the target due to strong orders in the Rakuten Mobile
nationwide 4G rollout and the Softbank 5G rollout.
• IT Solutions business: Orders received were lower both year on year and compared to the target as orders for DX and IT projects failed tocover the decline from the high level of GIGA School orders the previous fiscal year.
• Social System-Related business: Orders received were lower both year on year and compared to the target as orders for new renewable energy
projects failed to cover the decline from the high level of orders related to large-scale solar projects the previous fiscal year.
FY March 2022
Performance

Comparisons with
the Previous Term

Comparisonswith Target(Unit: ¥100 million)

NTT Engineering

2,292

-290

+62

NCC Engineering

557

+52

+27

IT Solutions

1,032

-21

-37

Social SystemRelated and Other

1,688

-35

-181
5

I-3. Details of Net Sales by Segment
Net sales were higher both year on year and compared to the target,with the exception of the IT Solutions business.
• NTT Engineering business: Sales were higher year on year and compared to the target with the progress made in high-speed wireless-related
construction in the AC business.
• NCC Engineering business: Sales were significantly higher both year on year and compared to the target due to expanded Rakuten Mobile sales
and strong growth in demand from Softbank.
• IT Solutions business: Sales were lower year on year and compared to the target as sales for DX and IT projects failed to cover the decline
from the high level of GIGA School sales the previous fiscal year.
• Social System-Related business: Sales were higher year on year and compared to the target due to the steady progress of contract backlogs
and the effects of M&A (FUJIKI Corporation).
FY March 2022
Performance

Comparisons with
the Previous Term

Comparisonswith Target(Unit: ¥100 million)

NTT Engineering

2,499

+77

+39

NCC Engineering

530

+57

+30

IT Solutions

1,013

-41

-56

Social SystemRelated and Other

1,847

+164

+77
6

I-４. Details of Operating Profit
Operating profit increased year on year and largely achieved the target due to the growth in sales.
• Operating profit increased year on year and basically met the target with sales growth for the AC business(high-speed wireless), the NCC business (Rakuten Mobile and Softbank), and the social system-related business (M&A).
• SG&A expenses increased due to strengthened construction resources and marketing capacity as a result of expanded
construction volume and new consolidation of company acquired through M&A.

Net sales
growth(Unit: ¥100 million)

Factors
affecting grossprofit margin-10

Increase in
SG&A expenses

FY March 2021
Performance

Increase in
SG&A expenses

-10

+34

415

Factors
affecting grossprofit margin

+13

-4

429

FY March 2022
Performance-7-0

Net sales
growth+12430

FY March 2022
Target7

I-5. Status of Contract Backlogs
Contract backlogs decreased from the high level of the previous fiscal year
in the NTT/social system-related businesses, but increased year on year in the NCC/IT Solutions businesses.
• NTT Engineering business: The contract backlog decreased significantly due to steady progress in construction in
AC business (high-speed wireless-related).
• NCC Engineering business: The contract backlog increased year on year due to growth in Rakuten Mobile orders
and continued strong orders from Softbank.
• IT Solutions business: The contract backlog increased year on year with slowed construction progress caused by delays in partsand materials, despite aggressive efforts to win orders.
• Social System-Related business: The contract backlog decreased significantly year on year with steady progress on construction
as a result of failure to acquire new orders.
(Unit: ¥100 million)

2,362
2,129
1,831
1,595

+235

+232

-319

2,042

-158

919

SocialSystem

254

IT

170

NCC

698

NTT

+298

1,078
1,031

807
625
150
85

234
209
119

236
115

142

+19
+27
-207

734

695

745

FY March 2019
Beginning of Term

FY March 2020
Beginning of Term

FY March 2021
Beginning of Term

906

FY March 2022
Beginning of Term

FY March 2023
Beginning of Term

8

II. Business Targets
for the Fiscal Year Ending March 31, 2023

II-1. Business Targets for the Fiscal Year Ending March 31, 2023
Although profits are expected to decrease, we will endeavor to increase orders
to achieve a V-shaped recovery from next fiscal year onward.
• The NTT business will plateau in FY2022, affected by the end of special demand for high-speed wireless-related
projects and investment control by Docomo.
• We will shift personnel from the NTT business and work to expand orders in NCC/growth businesses.
• We will aim for a V-shaped recovery from the next fiscal year onward by improving productivity throughdigital transformation (DX) and accelerated growth of NCC/growth businesses.
FY March 2022
Performance(Unit: ¥100 million)

FY March 2023
Targets

Comparisons withFY March 2022

Orders Received

5,570

5,900

+329

Net Sales

5,890

5,900

+9

Operating Profit

429

400

-29

Operating Margin

7.3%

6.8％

-0.5 p.p.

Note. p.p. = percentage points

10II-2. Order Targets by Segment
Orders expected to decrease in NTT business, but increase significantly in growth business• NTT Engineering business: Significant decrease in orders expected from the previous fiscal year due to decline from high levelof AC business (high-speed wireless-related) and MB business (control of capex) orders• NCC Engineering business: Aim for year-on-year increase in orders due to full-scale rollout of 5G base stations
by telecommunications carriers• IT Solutions business: Accelerate growth by incorporating orders for DX and IT investment projects, which are expected to recover• Social System-Related business: Accelerate growth by winning orders for public-sector infrastructure capex projects and new projects
for renewable energy
FY March 2022
(Unit: ¥100 million)

Performance

FY March 2023
Targets

Comparisons withFY March 2022

NTT Engineering

2,292

2,130

-162

NCC Engineering

557

580

+22

IT Solutions

1,032

1,150

+117

Social SystemRelated and Other

1,688

2,040

+351
11

II-3. Sales Targets by Segment
Sales in NTT business expected to decrease, but to be offset by other businesses• NTT Engineering business: Significant decrease in sales expected due to decline from high levelof AC business (high-speed wireless-related) and MB business (control of capex) sales• NCC Engineering business: Aim for increase in sales from active support of rollout of 5G base stations by telecommunications carriers• IT Solutions business: Aim for increase in sales by incorporating DX and IT investment project sales• Social System-Related business: Aim for increase in sales through steady progress on contract backlogs
and leveraging of M&A (FUJIKI Corporation)
FY March 2022
(Unit: ¥100 million)

Performance

FY March 2023
Targets

Comparisons withFY March 2022

NTT Engineering

2,499

2,230

-269

NCC Engineering

530

560

+29

IT Solutions

1,013

1,140

+126

Social SystemRelated and Other

1,847

1,970

+122
12

II-4. Progress of COMSYS VISION NEXT STAGE 2023
Aim to achieve initial goals by further expanding sales and increasing productivity
COMSYS VISION NEXT STAGE 2023
Steady growth in previous fiscal year
despite COVID-19
FYE March 31, 2022 Results YoY

FYE March 31, 2023 Targets

Net Sales: +4.6%

Net Sales: +0.2%

Operating Profit: +3.3%

Operating Profit: -6.9%

Net Sales(Unit: ¥100 million)

5,608

IT

981

SocialSystem

1,685

5,632
1,055

1,682

COMSYS VISIONNEXT STAGE 2023

Expand orders despite forecasted
decline in profit for current fiscal year

At least

5,896

5,900

1,025

1,140

1,854

Net Sales: At least 6,000
Operating Profit: At least 500
Total return ratio: Maintain 70% target

1,970

6,000
Growth Businesses

Balance sales and profit growth
Expand existing and new domains,promote M&As
Promote virtual company system

At least
1,200

At least
1,900

At least
50%

Telecommunications Carrier Business
2,942

2,894

3,016

2,790

FY March 2020
Results

FY March 2021
Results

FY March 2022
Results

FY March 2023
Targets389（6.9%）

415（7.4%)

429（7.3％）

400（6.8％）

Carrier

Reduce costs and improve productivity
through structural reform and IT system
integration
Create synergies from consolidation
Ensure capture of business opportunities

Maintain
Net sales
2,900

At most50%(Unit: ¥100 million)
Business Year

Operating Profit(Operating Margin)

FY March 2024
Targets+100

At least

500(8.0%)

13

III. Business Environment and Business Strategy

III-1. Business Strategy of COMSYS Group
Increase profitability and accelerate growth to achieve goals• Despite temporary slump due to decrease from high level of high-speed wireless-related projects, improve profitability in NTT fixed line business
in FY 2023 through effective use of IT, etc.
• Despite slump in mobile business due to control of investment by NTT-MB, shift personnel from NTT business and expand NCC business.
• Steadily expand growth businesses related to IT Solutions/Social Systems, including through M&A. Concentrate on areas of strength to improve profit margin.
• Promote structural reform, including shift of personnel from NTT business, increase profitability, and enhance growth potential.

NEXT STAGE 2023
Net Sales: At least 6,000
Operating Profit: At least 500(Unit: ¥100 million)

Increase
Profitability(P)

S: 5G/smart energy-related businesses
P: Promote use of IT, consolidate operations
within Group, shift personnel

Telecommunications
carrier business
Maintain
2,900

S: M&A
S: Expand business (renewableenergy, data centers,
undergrounding of utility poles,
expressways, and flood control)
P: i-Construction

S: Expand partnering
S: Expand businesses (cloudcomputing, local 5G, servicing
and maintenance)
P: Centralize Tokyo metropolitan
area sales

Social SystemRelated business
At least
1,900

IT Solutions
business
At least
1,200

Social SystemRelated business
1,970(Unit: ¥100 million)

S, P: Decrease fromhigh level of high-speed
wireless-related projects,
MTT-MB investment
control

Telecommunications
carrier business
2,790

FYE March2022
PerformanceFYE March 2023 goals(Figures in circles are approximate)

IT Solutions
business
1,140

FYE March 2024 goals Expand Sales (S)(Figures in circles are approximate)15

III-2. Market Trends for NTT Fixed-Line Related Business
Following on fiber optics (high-speed wireless-related) maintenance projects,
5G/Smart Energy-related projects will continue over the medium to long term.
NTT Group Medium-Term Management StrategyYour Value Partner 2025

NTT’s new network initiatives“IOWN”

Promote B2B2X model/roll out 5G services/promote personalization/pursue DX/migrate PSTN to IP
Promote urban development/contribute to vitalization of regional societies and economies/undertake disastercountermeasures

2020 (FY)

2021

2022

2023

2024

Tokyo Olympic
andParalympic Games“All-Photonics Network”

2025

2030

Osaka World Expo
Transmission medium:

End ADSL services
in fiber optics areas

Launch5G/local 5G

Conversion from metal lines to all fiber optics

End ISDN
services

Transmission equipment:

Currently, fiber optics → electrical → fiber optics
Change to directly transmit optical signals without conversion

Commence
IP switchover

Start IP service
connection

Complete full
IP migration

Information processing:From electrical processing to photoelectric fusion device

Promote PSTN migration
Gradually switch
over to IP network

IP connection with other operators
Fiber optics development Household coverage as of end of 2021: 99.7%• High-Speed Wireless Environment
Maintenance Promotion Project

Total of 5G base stations in all municipalities: 280,000
Population coverage: 95%• Infrastructure sharing

Promote smart energy business• Renewable energy power generation

Household coverage as of end of 2027: 99.9%• Subsidy support for installation

Development of G/local 5G・5G-MBH construction

Household coverage as of end of 2024: 99.85%• Edge computing• IoT

300,000
97%

600,000
99%• Data centers

Sales ¥600 billion, capex ¥45 billion/year• Energy storage plant construction • Advanced EV stations
Transfer of electricity-related business to NTT Energy Anode Corporation and management consolidation scheduled for July 2022

16

III-3. Trends in NTT Fixed-Line Related Business
Significant decrease in both orders received and sales due to decline
from high level of high-speed wireless-related projects• Significant decrease in both orders and sales with large decline from high level of high-speed wireless-related projects.
• Aiming to further enhance productivity by promoting Group-wide utilization of business IT platforms.
• Utilize locally-based resources for new partnerships with corporate and mobile businesses.
Sales of NTT Engineering Business–AC and NW(Simple total of eight companies*)

1,871

1,785
NW

207

224

1,664

AC 1,561

FY March 2021
Results

FY March 2022
Results

NTT Regional Communications Business capex**

5,274(Unit: ¥100 million)

5,011

4,950

-141

(Unit: ¥100 million)

1,730
205

-139

1,525

FY March 2023
Targets

No. of FLET’S Lines Provisioned

275

FY March 2022

FY March 2023
Targets

260(Unit: 10,000 lines)

+0%

-1%

FY March 2021

258

FY March 2021

FY March 2022

FY March 2023
Targets

Source: Prepared by COMSYS Holdings based on the supplementary data for the Financial Results for the Fiscal Year Ended March 31, 2022, Nippon Telegraph and Telephone Corporation* Simple total of eight companies is the sum of net sales of the following eight companies: Nippon COMSYS Corporation; SANWA COMSYS Engineering Corporation; TOSYS Corporation; TSUKEN Corporation; NDS Co., Ltd.; SYSKENCorporation; Hokuriku Denwa Kouji Co., Ltd.; and COMSYS JOHO SYSTEM Corporation.
** Total of capex plan numbers from NTT East and NTT West17

III-4. Status of 5G Rollout at Telecommunications Carriers
Develop 5G base station rollout using 4G frequencies
5G BaseStation Opening Plans of Each Carrier
キャリア各社の5G基地局開設計画(Base stations)

70,00060,000

5G Capex Plans of Each Carrier
docomoKDDI• Five years up to March 31, 2024:1
trillion yen

SB• Five years up to March 31, 2024:1
trillion yen• Cumulative total by 2030: 2 trillion yen(including 6G research and development)

50,000

Rakuten• Around 500.0 billion yen by• Around 200.0 billion yen by March 31,
March 31, 2024
2024 (4G investment expected to• Cumulative total by 2030: 2.2 trillion yen increase by 30 or 40% from(including 6G research and development)
approximately 600.0 billion yen)

Total including 4G frequency utilization
SoftBank• Oct. 2021: 20,000 base stations, commence SA• Mar. 2022: 90% population coverage• Mar. 2026: 200,000 base stations• Mar. 2031: 350,000 base stations (Note 10)

docomo40,000au(KDDI)SB
Rakuten M

30,000KDDI
Approx. 10,000 basestations (Note 2)

20,000KDDI and SoftBank
50,000 base stations (Notes 3 and 4)
Includes 5G use of 4G frequencies andjoint use with 5G Japan Corp

docomo10,000 base stations(Note 1)0March 31, 2020

Local 5G roll out

docomoMarch 31, 2024
90% coverage (Note 9)

docomoDec. 2021 standalone (Note 9)
docomo20,000 base stations (Note 1)
docomo12,000 base stations (Note 8)

10,000

Ministry of Internal
Affairs andCommunications’
5G introduction
guidelines

docomo32,000 base stations(Notes 5 and 10)

June 30, 2020

March 31, 2021

June 30, 2021

August 31, 2021

RakutenRakutenApprox. 13,000 base
March 31, 2028
RakutenApprox. 6,000 base stations (Note 6) Additional 1.7GHz band
allocation
stations (Note 6)
Approx. 30,000 basestations (Note 6)
March 31, 2022 March 31, 2023

Tax incentives for bringing forward establishment
Institutionalization for
5G use of 4G bands

Promotion of 5G and local 5G roll out

Expansion of demonstration projects and use cases(agriculture, manufacturing, education, infrastructure monitoring, and open laboratory establishment)
Local 5G licenses to be acquired by vendors,
cable TV, NTT-COM, NTT East and NTT West, local governments, and universities

Notes
1. Information on NTT Docomo presentation of 5G, new services and new products, March 18, 2020
2. KDDI, News Release, March 23, 2020
3. SoftBank, Earnings Results Briefing for FY ended March 2020

4. KDDI FY2019 General Meeting of Shareholders Q&A
5. NTT Docomo, New Service and Product Presentation 2020 – 2021 Winter and Spring, November 5, 2020
6. Ministry of Internal Affairs and Communications, information on Authorization of Establishment Plans
7. Ministry of Internal Affairs and Communications, Digital Garden City Nation Infrastructure Development Plan, March 29, 2022

Ministry of Internal Affairs andCommunications Targets (Note 7)(Including 4G use)

Population coverage Base stations

Mar. 2024
Mar. 2026
Mar. 2031

95%
97%
99%

280,000
300,000
600,000

8. New Product Presentation 2021-2022 Winter/Spring, October 6, 2021
9. Press releases appearing in the Nikkei Newspaper
10. Ministry of Internal Affairs and Communications, Approval of modification
to the establishment plan of specified base stations for NTT DOCOMO, INC. , December 28, 2021

18

III-5. Trends in NTT Mobile Business
Significant decrease in 5G construction expected due to use of 4G frequencies• Orders, sales, and operating profit expected to decrease significantly due to curbs on new 4G construction anddecrease in 5G construction due to use of 4G frequencies for 5G.
• Aiming to further increase productivity by promoting DX (business consolidation and robotic process automation [RPA]).
• Reduce fixed costs and shift MB personnel for expansion of NCC business.
Sales of NTT Engineering business–MB(Unit: ¥100 million)(Simple total of eight companies)

597

582
-122

FY March 2021
Results
NTT DOCOMO Capex*

FY March 2022
Results

460

FY March 2023
Targets

Promote Digital Transformation of NTT Mobile Business(Unit: ¥100 million)
Communications
business*

5,244

Communications
business capex**

FY March 2021

4,943

IT Platforms

5,243

5,214

FY March 2022

FY March 2023
Targets*Former NTT DOCOMO Group, excluding NTT Communications Corporation and NTT COMWARE Group**NTT DOCOMO Group, including NTT Communications Corporation and NTT COMWARE Group
Source: Prepared by COMSYS Holdings based on supplementary data for the Financial Results
for the Fiscal Year Ended March 31, 2022, Nippon Telegraph and Telephone Corporationl Further embed operation at all Group
companiesl Introduce autonomous RPA operation into
construction backyard operations
l Centralize and streamline material prep andDigitalcontract operations that were conducted byTransformation
construction site officel Reduce fixed costs by mobilizing humanin work
resources. Support infrastructure sharing andprocesses
5G peripheral businesses.

19III-6. Trends in NCC Business
Aiming to expand business leveraging company-wide mobile resources• Rakuten: Aiming to expand orders received and sales through continuation of nationwide Rakuten 4G rollout and increased share of 5G rollout.
• Softbank: Currently promoting 5G rollout: Aiming to expand orders and sales by increasing share of business.
• Au: 5G rollout in full swing, and 3G removal beginning: Also aiming to increase orders and sales.
• Infrastructure sharing with JTower Inc and others expected to expand. Aiming for future business expansion through relationship building at early stage.
Consolidated Sales of NCC Engineering Business

472

FY March 2021
Results

530

FY March 2022
Results

560+29(Unit: ¥100 million)

FY March 2023
Targets

Status of KDDI
Active promotion of 5G use and acceleration of nationwide 5G rollout

Source: Financial Results for the Fiscal Year Ended March 2022,
New Mid-Term Management Strategy, KDDI CORPORATION

Status of Rakuten Mobile

Status of SoftBank

Feb. 2022: 4G population coverage reached 96%

Investment concentrated on 5G in fiscal 2022

Sources: 1Q FY2022 Financial Results Presentation supplement, Rakuten Group, Inc.,and 1Q FY2022 CEO presentation materials, Rakuten Group, Inc.

Source: Earnings Results Briefing for FY2021, Softbank Corporation

20

III-7. Trends in IT Solutions Business
Aiming for sales and profit growth in all sectors to achieve Medium-Term Management Plan
• Aiming for sales and profit growth in all sub-segments despite remaining impact of COVID-19 and semiconductor shortages.
• Focusing on education, public, smart city and medical sectors with business partnering efforts.
• Developing human resources in high value-added areas and strengthening foundation for business growth .
by leveraging telecommunications carrier-related resources (fixed line and mobile).
Consolidated Sales of IT Solutions Business

1,055■ Software development■ Solutions■ Maintenance

1,013

Solutions

＋126

324

307

711

638

745

66

67

70

FY March 2021
Results

FY March 2022
Results

FY March 2023
Targetsl Digital transformation projects for corporate logisticsl Development of full harness AI inspection systeml Development of smartphone service operation data
platforml Introduction of internal administration system terminals at
public agencies
l Cybersecurity introductionl Local government information security cloud renewal(Unit: ¥100 million)

+60

277

Main Orders Received in Each Sector
SoftwareDevelopment

1,200

1,140

FY March 2023
Goal

Initiatives in IT Solutions BusinessBusiness
Expansionl AI, IoT, L5G, and smart city projects
l Introduction of cloud computing/construction of hybrid
environments for public and private systemsl Expansion of recurring revenue business (managed services,maintenance and operation areas)

Strengthening
Infrastructurel Centralization of Tokyo metropolitan area sales (IT platform +software development)l Sales with consultation and training of advanced engineers to
support introduction of cloud computing
l Consolidation of contact center operations
l Leveraging of telecommunications carrier-related resources21

III-8. Business Expansion in IT Solutions Business (Examples)
Expand managed services through Group collaboration and partnering• Provide solutions from construction to maintenance and operation of hybrid environments including on-premiseand cloud computing.
[Operation of managed services]• Collaborate with Google/Microsoft/AWS to strengthen multi-cloud support capabilities while sharing roles
within the Group.
• Expand MSP business by strengthening competitiveness through collaboration with JIG-SAW Inc. and creating
an ecosystem through partnership development.

GoogleMicroSoft

Google Cloud platform

Azure / M365

AWS

On-premise
On-siteStrengthen multi-cloud support capabilities through role-sharing/collaboration within the Group
Develop managed services for cloudcomputing in collaboration with
Google partners

Develop business providing support
for implementation and operation of
Microsoft 365, and effective use of
the help desk

Consider business expansion
through support for migration of
COMSYS and loyal customer
internal systems to cloud computing

by all Group companies

Security measures
Managed services(Maintenance, outsourcing, delivery, etc. in hybrid cloud environments)22III-9. Human Resources Strategy in IT Solutions Business
Secure human resources required for growth through recruitment, training and M&A
High Value-Added Domains
Software development
engineers

Priority technology areas
Advanced and coreengineers

Upstream processes
Managementl Business planningl Agile developmentl Digital technology utilization

l
l
l
l

Focus Areas+30％*• Agility and cloud
migration

Cloud computing-related
Security-related
Cutting-edge technology
Full layer engineers• AI, IoT, and API+100％*• Data mining andanalysisl IT architectsl Project managers
l Service managers

2021

+30%*

2024

Existing Platform Technology
Existing platform engineers

Strengthening
construction system Utilization of
local 5G andcloudcomputing※l Network-relatedl Virtualization and PF-related+20%

l Field representatives
l Managing engineers(telecommunications and electrical)

 Safety, quality,
and sitemanagement

※

2021

+10%

2024

*Operated primarily by Nippon COMSYS Corporation and Comsys JOHO System Corporation

Establishment of growth platform: Incentives and other system designs, personnel mobility, productivity improvement

23

III-10. Trends in Social System-Related Business
Aiming for sales and profit growth through acquisition of new projects and leveraging of M&A• New consolidation of FUJIKI Corporation subsidiary acquired through M&A in previous fiscal year
• In infrastructure segment, focus on undergrounding of utility poles and water supply and sewerage sectors. Work to develop PFI
and flood control projects.
• In renewable energy segment, focus on after-FIT solar sector. Work to win biomass and wind projects.
• In electric facilities segment, focus on expressways and Ministry of Defense facility-related projects. Work to develop data center customers.
Consolidated Sales of Social System-Related Business

1,682■Infrastructure and Other■Renewable Energy■Electric Facilities

1,847

1,970

1029

1187

383

469

369

432

348

412

FY March 2022
Results

FY March 2023
Targets

Main Orders Received in Each Sector
Infrastructure
and Otherl Higashikoiwa, Edogawa-ku water mains projectl Minato-ku, Nagoya City sewerage project

Renewable
Energyl Solar power plant construction projectl Biomass gasification and power generating facilities project

Electric
Facilitiesl Expressway monitoring and control equipment projectl Ghibli Park parking control system project(Unit: ¥100 million)

+122

867

FY March 2021
Results

At least
1,900

FY March 2023
Goal

Initiatives in Social System-Related BusinessBusiness
Expansionl Expansion of existing business (undergrounding of utility
poles, roads/defense, and after-FIT solar projects)
l Expansion of new business (flood control, data centers,
PFI, renewable energy, including biomass)l M&A

Strengthening
Infrastructurel Strengthening capabilities to win orders through virtualcompany structurel Improving productivity by promoting digital transformation(i-Construction)l Developing managing and young engineers

24III-11. Growth Strategy for Renewable Energy Business
Develop new renewable energy sector to reduce greenhouse gas emissions• Expand solar business by providing new value-added (EMS) after-FIT solar projects (FIP/self consumption)• For biomass, follow Makurazaki with second biomass power plant and aim to win future EPC projects• Currently developing wind, hydrogen, geothermal and other new sectors

Increase in scale and complexity

Second biomass
power plant (IPP)
Makurazaki biomass
power plant (IPP)FY2020Orders Received:
33.0 billion

FY2021
Orders Received:
19.8 billion

FY2022
Orders Received:
39.1 billion

Win solar power generation FIP/PPA/self-consignment projects

Present

Future25

III-12. Business Expansion through M&A
Acquired FUJIKI Corporation as a subsidiary (November 2021)• Acquired FUJIKI Corporation, one of Japan’s leading S-grade steel frame manufacturing/construction
and bridge construction companies, as a subsidiary.
• Promoting collaboration in construction of high-rise buildings and data centers to expand business in the future.
• Continue expanding business through M&A (plan to acquire SUN Group as a subsidiary in July 2022).
Corporate Data

Leading
Japanesesteel framecompanyName

FUJIKI Corporation

Head OfficeChuo-ku, Niigata City, Niigata

Established

April 1927

Paid in Capital¥98 million

Number of
Employees

226

Certification

S-grade, Minister of Land,
Infrastructure, Transport andTourism, 2016

Major business
partners

TAISEI CORPORATION, Takenaka
Corporation, general contractors

S-gradeplantsBusiness
partners andhumanresources

One of Japan's leading steel frame and bridge construction
companies established in 1927

• Has grown through acquisition of important customers such as major general contractors,
mainly in the Tokyo metropolitan area

17th Super grade plant in Japan (out of 20 in total)• Certified as S-Grade, the highest ranking, by Minister of Land, Infrastructure,
Transport and Tourism in 2016
• Extensive track record in high-rise buildings, public facilities, bridges, etc.

Good relationships with customers and business partners• Maintains relationships with major general contractors and other customers
from upstream processes• Employs many certified construction management engineers and other qualified experts

Business Results Trends(Unit: ¥100 million)

Net Sales

200

Operating Profit

Operating Profit

Net Sales

150

15
10

100

5

50
0

0
2016

2017

2018

2019

2020

Meiji Co., Ltd. Kyobashi
HQS Building

Niigata Nippo Media Ship

Asai Ohashi Bridge (National Highway No. 289, Niigata Prefecture)26

III-13. Promotion of Digital Transformation
Common-use IT platform nearly complete, accelerate operational unification• Group-wide IT platform nearly complete, aim to accelerate unification of operations and improve productivity.
• Promote work style reform by normalizing telework, which began as a response to the COVID-19 pandemic
but is now continuing as a common option.
• Improve operations by raising issues based on benchmarking as a result of data visualization.
Goals

FY2023

FY2022

FY2021Develop common system platform
Group optimization

Completed standardization of mobile systems Completed standardization of fixed-line systems

Standardized business systems
Completed standardization of accounting systems

Standardized accounting systems
Introduce human resources development system

Accelerating centralization of operations
Making telework common work style option
Support for diverse
work styles

Automation and labor savings (utilization of RPA)
Remote access
Expanding communication tools
Developing paperless operations

Telework as common work style
Utilization ofdata

Data-based operational improvements
Data visualization

Promotion of operational improvements

27

III-14. Promotion of ESG
Strive to enhance corporate value by making social contributions through business activities
Social (S)Environment (E)Expand Renewable Energy Business(Net sales of social system-related business/renewable energy segment)
Unit: ¥100 million

303

Mar. 2019

469
293

Mar. 2020

383

Mar. 2021

369

Mar. 2022

Human Resources

Strengthen Corporate Governancel Increase percentage of women among new graduate
hires (April 1, 2021: 19.5%, up 0.8 percentage points year
on year)l Transitioned to a “company with audit and supervisorycommittee” structure (2017)l Increase percentage of women in management positions(April 1, 2021: 48 women managers, up 6 persons year
on year)l Employ non-Japanese nationals (as of April 1, 2021: 8
employees, up 2 year on year)

Mar. 2023
PlannedGovernance (G)l Established Nomination and Remuneration Advisory
Committee (2017)l Ratio of Outside Directors: 1:3 (5 out of 15)
l Ensure diversity of Board of Directors(identify women qualified as candidates for director)l Promote work style reforml Start operation of Group’s first biomassl Expand post-solar business(biomass power generation,wind power, hydrogen)

Build Safe and Secure Social
Infrastructure

Reduce Environmental Impact
CO2 emissions
Final disposal volume
Approx. 9% reduction year on yearof industrial waste(Nippon COMSYS Corporation) Approx. 6% reduction year on year
Effect of increasing purchase of green electricity,(Nippon COMSYS Corporation)
adjusting business sites, and introducing lowemission vehicles, etc.

l Increase orders received for construction related to disasterprevention and mitigation, and national resilience(construction of water and sewerage, expressway facilities,
and earthquake-proofing of communications equipment)l Disaster recovery and reconstruction projects(responded to July 2020 heavy rainfall-related damage witha total of 7,100 people over 2 months)

Compliancel Complete internal reporting systems(internal and external)l Establish regulations to protect whistleblowers
l Training to prevent collusion, bribery, etc.
l Training to promote respect for human rights(eliminate sexual harassment, power harassment, anddiscrimination, etc.)(As of March 31, 2021)

Adopted for MSCI Japan ESG Select Leaders Index**A share price index constructed by selecting large-, medium-, and small-cap companies listed in Japan with outstanding ESG ratings based on MSCI standards (composed of 223 stocks as of June 2022)

28

III-15. Promotion of TCFD
Endorsement of TCFD and establishment of promotion system

Endorsement of TCFD

Establishment of Sustainability
Committee

In November 2021 the COMSYS Group announced
its endorsement of the Recommendations on
Climate-Related Financial Disclosures made by the
Task Force on Climate-Related Financial
Disclosures (TCFD).

Sustainability Committee chaired by President of
COMSYS Holdings to be established in July.
Promote formulation of strategy and solutions tosustainability-related issues, including climatechange.

CO2 reduction targets

FY2020 emissions

Scope 1

88,178t

42% reduction

Scope 2

15,626t

Carbon neutrality

Scope 3

1,750,000t

25% reduction

by FY2030
by FY2050

by FY2030

Scope 1: Direct emissions of greenhouse gases by the business
Scope 2: Indirect emissions due to the use of electricity, heat, and steam supplied by other companies
Scope 3: Indirect emissions from the supply chain (emissions of other companies related to the activities of the business)

29

VI. Shareholder Returns Policy

VI-1. Shareholder Returns Policy(Dividends and Acquisition of Treasury Shares)
Aiming for 70% total return ratio through 5 yen increase individend and acquisition of treasury shares

ProfitTotal Dividends

Purchase of Treasury Shares

280
51(Unit: ¥100 million)

203 80[ 228 ]

80+α259 80293 70292 80270 50 Treasury
Shares

95

106

117

122 Total
Dividends

Purchase of

March 2018

March 2019*

March 2020

March 2021

March 2022

March 2023
(Planned)**Interim

¥25

¥30

¥35

¥40

¥45

¥50

Yearend

¥25

¥30

¥40

¥45

¥50

¥50

37.0%

36.5%

40.3%

45.3％

54.5%

67.5%

60.2%

67.5%

20
Dividends
Per Share

Negative
Goodwill

72

58

Net Sales(Targets)

Consolidated
Payout Ratio
Total Return Ratio

28.0%

26.1%
[32.0％]

Dividends + treasury shares
Profit67.5%

Number of Sharesof Treasury Sharesat the End of the Period(Ownership Ratio)

26.42

12.29

14.16

15.96

18.57

million shares（18.7%）

million shares(8.7%)

million shares(10.0%)

million shares(11.3%)

million shares（13.1％）

—

ROE

9.4%

8.6%

9.2%

8.8％

—

[66.8％]

10.6%【8.7％】* Figures in [ ] are estimates assuming no negative goodwill.
** Figures assume treasury shares acquired for share price as of March 31.

63.8％

+α

31

— COMSYS Group Management Philosophy —At the COMSYS Group, we are united as a Group and strive for strong partnership and collaboration with diverse
external players in achieving our management philosophy.
• We will build a company that customers continue to choose through the construction of diverse infrastructure that carries our era forward.
• We will contribute to our country and local communities by building social infrastructure that supports affluent lifestyles.
• We will continue with unrelenting reform in our aim to further increase corporate value.

Cautionary Statement with Respect to Forward-Looking Statements

Forecast figures contained in these presentation materials are forward-looking statements that assume underlying risks and uncertain factors.
Accordingly, it should be recognized that actual results may differ from such forward-looking statements due to a variety of factors.
Important factors that could affect results include, but are not limited to, changes in economic conditions and social trends relevant to the Group’s businessareas, and downward pressure on prices for the services provided by the Group owing to fluctuations in demand and intensified competition.

For further information, please contact:
IR Department
Telephone: +81-3-3448-7000 (direct)
Facsimile: +81-3-3448-7001
E-Mail: chd-ir@comsys.co.jp
URL: https://www.comsys-hd.co.jp/