Presentation of Business Results for Overseas Investors

December 2022

Contents
I. Business Overview

II.

III.

Page

1. Business Domains of COMSYS Group

・・・・・

4

2. Business Segments

・・・・・

5

3. Business Positioning and Growth Strategy

・・・・・

6

4. History of Operating Results

・・・・・

7

Business Targets
for the Fiscal Year Ending March 31, 2023

IV.

Full-Year Business Forecasts
for the Fiscal Year Ending March 31, 2023

Page

1. Trends in NTT Fixed-Line Related Business

・・・・・

20

2. Status of 5G Rollout at Telecommunications Carriers

・・・・・

21

3. Trends in NTT Mobile Business

・・・・・

22

4. Trends in NCC Business

・・・・・

23

5. Trends in IT Solutions Business

・・・・・

24

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

・・・・・

9

6. Trends in Social System-Related Business

・・・・・

25

2. Order Targets by Segment

・・・・・

10

7. Promotion of Digital Transformation

・・・・・

26

3. Sales Targets by Segment

・・・・・

11

8. Promotion of ESG

・・・・・

27

4. Progress of COMSYS VISION NEXT STAGE 2023

・・・・・

12

9. Promotion of TCFD

・・・・・

28

・・・・・

30

Overview of Performance for the First Halfof the Fiscal Year Ending March 31, 2023

V. Shareholder Returns Policy
1. Shareholder Returns Policy(Dividends and Acquisition of Treasury Shares)

1. Highlights of Financial Statements for the First Half

・・・・・

14

2. Details of Orders Received by Segment for the First Half

・・・・・

15

3. Details of Net Sales by Segment for the First Half

・・・・・

16

Reference Materials

4. Details of Operating Profit for the First Half

・・・・・

17

1. Corporate History

・・・・・

32

5. Status of Contract Backlogs for the First Half

・・・・・

18

2. M&A History

・・・・・

33

3. Stock Information (As of September 30, 2022)

・・・・・

33

4. Organization Chart/Board Members (As of June 29, 2022)

・・・・・

34

I. Business Overview

I-1. Business Domains of COMSYS Group
Consolidated Results for FY March 2022

○ Net Sales:¥589.0 billion○ Operating Profit:¥42.9 billion○ Number of Employees: 17,520 (As of March 31, 2022)

Consolidation on October 1, 2018

FY March 2022
Consolidated Basis
Net Sales
Operating Profit
Number of Employees
Head office

Nippon COMSYSGroup

SANWA COMSYSEngineering
Group

TOSYS
Group

TSUKEN Group

NDS
Group

SYSKEN Group

Hokuriku
Denwa Kouji
Group

COMSYSJOHO SystemGroup

COMSYS
Shared Services
Corporation¥300.5 billion¥19.2 billion
6,539
Tokyo

¥67.4 billion¥7.0 billion
1,697
Tokyo

¥31.7 billion¥1.7 billion
1,337
Nagano¥62.1 billion¥6.2 billion
2,201
Hokkaido¥78.7 billion¥4.0 billion
2,959
Aichi

¥36.9 billion¥1.8 billion
1,029
Kumamoto¥17.2 billion¥0.6 billion
911
Ishikawa¥14.9 billion¥1.6 billion
612
Tokyo

¥5.2 billion¥0.4 billion
138
Tokyo

NTT
Engineering

NCC
Engineering

Virtual companies

IT Solutions

SocialSystem-Related
and Other* Net sales figures of each of the eight groups within the COMSYS Group are shown by offsetting (intra-group) transactions within each group but not offsetting transactions between groups.

4I-2. Business Segment
Business
Segments

Net Sales by
Business Segment(September 30, 2022)

NTT
Engineering

42.4%
42.3%
42.4%

NCC
Engineering

10.9%
9.0%
9.0%

Main Customers

Specific Lines of Business[ NTT Group ]• Nippon Telegraph and Telephone
East Corporation• Nippon Telegraph and Telephone
West Corporation• NTT Communications Corporation• NTT DOCOMO, Inc., Others

Construction of telecommunications facilities for telecommunications carriers[ KDDI Group ]• au, UQ Communications Inc.
Others[ SoftBank Group ]• SoftBank Corp., Wireless City
Planning Inc., Others[ Rakuten Group ]• Rakuten Mobile, Inc.

• Access projects• Mobile projects• Network projects
Provision of total solution service in IT field

IT Solutions

17.2%
17.9%
17.2%

• Private corporations• Government agencies• Local governments, Others• Server construction• Call center operations• Data center construction• Network Integration • System Integration • Software development

Electrical, civil engineering and other construction projects related to urban infrastructure
SocialSystem-Related
and Other

28.9%
31.4%
31.4%

• Private corporations• Government agencies• Local governments, Others• Construction projects for solar and wind • Communications andpower generation and others
civil engineering projects• Gas pipe and water supply and sewerage pipe construction projects• Electrical facility projects5I-3. Business Positioning and Growth Strategy
Business Positioning

Growth Strategy

Specific Measures

Core Businesses for Growth

IT Solutions BusinessSocial System-Related Businessl Proliferation of IoT, AI and other technologies and newinvestment in corporate digital transformation (DX) anddistance education projects, etc.
l Launch of various 5G- and local 5G-based services

l Expansion of net salesl Expansion of profit andprofitability

Core Businesses for Profitl Trend of decline in capex at telecommunications carriersl New medium-term investment for construction of 5G
infrastructure and IP conversion of metallic lines
l NTT plans to enter electric power supply businessl Actively implement M&As
l Promote alliancesl Vigorous investment in social infrastructure(National resilience, promotion of renewable energy, expansion
of PFI and concession business, etc.)

NTT Engineering Business
NCC Engineering Businessl Maximize use of management
resources through virtual companies,
including consolidated companies

l Ensure profit through improved
productivity and cost reductions
l Ensure sales through steadyacquisitions oftelecommunications carrier
investment

Growth Platform• Operational reform through promotion of digital transformation• Radical structural reform of business management systems• Utilization of latest IT technologies such as wearable terminals,
AI and RPA• Increased personnel mobility among group companiesl Drastically reform business structure,including consolidated companiesl Utilization of IT at construction sites
and further enhancement of the IT
platform by rolling out to Group
companiesl Training multi-skilled engineers• Increased productivity• Increased competitiveness• Increased safety• Develop and secure diverse human resources6I-4. History of Operating Results
Net Sales

Operating Profit

Operating Margin

All-time high(Unit: ¥100 million)
net sales

5,890
8.3%

5,608

8.4%

5,632

8.0%
7.4%

7.1%

4,817

7.5%

7.3%

7.4%
6.9%

429

3,800
3,154

2,958

3,313

3,160

3,286

3,206

276
3.7%

117

4.3%

125

415

3,341

389

All-timehigh profit

352

238
250

275

7.3%

303

225

FY March 2011 FY March 2012 FY March 2013 FY March 2014 FY March 2015 FY March 2016 FY March 2017 FY March 2018 FY March 2019 FY March 2020 FY March 2021 FY March 2022

TSUKEN
Structural
Reform consolidation

Utilizationof IT

Merger and divestiture of subsidiaries
Dual stratification ofprime contractors and subcontractors

Introduction of sharedplatformfor core tasks

Eliminate and centralize
duplicated tasks

Utilization of IT on construction sites

Promote business company system

Upgrade construction IT platform

7

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 Docomo’s changes to its 5G plans.
• 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

5,800

+229

Net Sales

5,890

5,800

-90

Operating Profit

429

380

-49

Operating Margin

7.3%

6.6％

-0.7 p.p.** p.p. = percentage points** Downwardly revised the full-year targets in light of expected decreases in orders received, net sales, and operating profit owing to soaring raw material prices,delays in delivery of materials and parts due to semiconductor shortage, and other factors.

9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 (Docomo’s changes to its 5G plans) 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

1,940

+251
10

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 (Docomo’s changes to its 5G plans) 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

1,870

+22
11

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: -1.5%

Operating Profit: +3.3%

Operating Profit: -11.6%

Net Sales(Unit: ¥100 million)

IT
SocialSystem

5,608
981

1,685

5,632
1,055

1,682

COMSYS VISIONNEXT STAGE 2023

Expand orders despite forecasted
decline in profit for current fiscal year

5,890

5,800

1,013

1,140

1,847

1,870

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

At least

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

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

2,942

2,894

3,029

2,790

FY March 2020

FY March 2021

FY March 2022

FY March 2023

FY March 2024

Results

Results

Results

Targets

Targets389（6.9%）

415（7.4%)

429（7.3％）

380（6.6％）

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

Operating Profit(Operating Margin)+120

At least

500(8.0%)

12

III. Overview of Performance for the First Halfof the Fiscal Year Ending March 31, 2023

III-1. Highlights of Financial Statements for the First Half
Net sales and operating profit decreased year on year due to a decline
from the high levels of previous year and supply constraints for parts and materials.
• Orders received decreased year on year due to a decline in the NTT (mobile) business, despite higher orders received
in the NCC Engineering and IT Solutions businesses.
• Net sales decreased year on year, due to a decline in the NTT Engineering and Social System-Related businesses, despite strong sales
in the NCC Engineering and IT Solutions businesses.
• Operating profit decreased year on year, due to the decrease in net sales and the soaring price of raw materials, despite efforts to improve productivity.

FY March 2023
1H Performance

Comparisons with
the Previous Term

Orders Received

2,678

-46

Net Sales

2,308

-228

Operating Profit

94

-86

Operating Margin

4.1%-3.0 p.p.

(Unit: ¥100 million)

Note: p.p. = percentage points

14III-2. Details of Orders Received by Segment for the First Half
Orders received decreased year on year with a decline in the NTT business,despite strong orders received in the IT business.
• NTT Engineering Business: Orders received decreased year on year due to lower orders in the mobile business, even as the decline from the previous year’shigh level of high-speed wireless-related orders was offset by various maintenance operations.
• NCC Engineering Business: Orders received increased year on year as orders remained strong due to active base station construction
by telecommunications carriers.
• IT Solutions Business: Orders received increased year on year due to orders for large-scale public sector projects and greater collaboration
with alliance partners.
• Social System-Related Business: Orders received remained flat year on year as the effect of newly consolidated subsidiary FUJIKI Corporation offset
the decline in orders received for electric facilities and communication-related construction.

FY March 2023
1H Performance

Comparisons with
the Previous Term

NTT Engineering

1,093

-118

NCC Engineering

255

+6

IT Solutions

564

+63

Social SystemRelated and Other

765

+1

(Unit: ¥100 million)

15

III-3. Details of Net Sales by Segment for the First Half
Although sales increased year on year in the NCC Engineering and IT Solutions businesses,
sales decreased in the NTT Engineering and Social Systems-Related businesses.
• NTT Engineering Business: Sales decreased year on year due to the decline from the previous year’s high level of high-speed wireless-related sales and thedecrease in sales volume in the mobile business (5G construction).
• NCC Engineering Business: Sales increased year on year due to 5G base state construction by KDDI and SoftBank
and an expansion of Rakuten Mobile service area.
• IT Solutions Business: Sales increased year on year due to steady completion of order backlogs despite the impact of semiconductor shortages.
• Social System-Related Business: Sales decreased year on year due the decline from the high level of large-scale solar project sales recordedin the previous fiscal year and delays in the progress of construction.

FY March 2023
1H Performance

Comparisons with
the Previous Term

NTT Engineering

976

-130

NCC Engineering

250

+30

IT Solutions

413

+12

Social SystemRelated and Other

667

-140

(Unit: ¥100 million)

16

III-4. Details of Operating Profit for the First Half
Operating profit fell year on year due to the decrease in net sales and other factors,
despite efforts to improve productivity.
• Despite efforts to complete projects ahead of schedule and improve productivity, operating profit decreased, impacted
by the decrease in sales in the NTT Engineering and Social Systems-Related businesses.
• The gross profit margin deteriorated due to soaring raw material prices and other factors.
• SG&A expenses increased due to the effect of the consolidation of FUJIKI Corporation.

Net sales
decrease-34(Unit: ¥100 million)

Deterioration ingross profit margin

-44

180

Increase in
SG&A expenses

-7

180
94

FY March 2022
1H Performance

FY March 2023
1H Performance17III-5. Status of Contract Backlogs for the First Half
Contract backlog increased year on year in the IT business,but decreased year on year in the NTT business.
• NTT Engineering Business: Contract backlog decreased year on year due to the decline from the previous year’s level of high-speed wireless orders
and the decrease of orders in the mobile business (5G construction).
• NCC Engineering Business: Contract backlog increased year on year due to the continuation of strong orders from telecommunications carriers.
• IT Solutions Business: Contract backlog increased year on year, mainly due to strong orders for large-scale public sector projects.
• Social System-Related Business: Contract backlog decreased year on year due to a decline from the high level of solar projects in the previous fiscal year
and delays in orders received for renewable energy projects.

(Unit: ¥100 million)

2,581
2,129

2,549
2,362
1,032

1,101
SocialSystem

-137

2,411
2,042
1,017

-15

405

+70

254
170

174

+3

698

815

1,078
1,031

ChangeYear on Year

919
409

IT
NCC

236
115

156

234
142

NTT

745

914

906

334
171
1,010

Contract backlog Contract backlog
at beginning of 1Q at beginning of 3Q

Contract backlog Contract backlog
at beginning of 1Q at beginning of 3Q

Contract backlog Contract backlog
at beginning of 1Q at beginning of 3Q

FY March 2021

FY March 2022

FY March 2023

-195

18

IV. Full-Year Business Forecasts
for the Fiscal Year Ending March 31, 2023

IV-1. Trends in NTT Fixed-Line Related Business
Steady progress in AC business projects and creation of new business opportunities• Despite the decline from the high level of high-speed wireless related projects in the previous fiscal year, the Group will aim to achieve the full-year target
by making the most of an increase in various maintenance operations.
• In the 2H, the Group will endeavor to expand into the system integration (SI) and maintenance fields, and actively pursue other new business opportunities.
• The Group will promote greater efficiency through nationwide system integration and consolidation of backyard operations.
Sales of NTT Engineering Business–AC and NW(Simple total of eight companies*)(Unit: ¥100 million)

1,871
207

824
76

NW

1,664

205
-48

747

AC

First Half

Full YearNTT Regional Communications Business capex

2,143

-13%

First Half Full YearFY March 2022

-1%

4,950

71

1,525

First Half

Full Year Target

FY March 2023

No. of FLET’S Lines Provisioned(Unit: ¥100 million)

258
137

1,863

First Half

776
704

FY March 2022

5,011

1,730

-141

Full Year
TargetFY March 2023

-13%

First Half Full YearFY March 2022

260

+0%

(Unit: 10,000 lines)

118

First Half

Full Year
TargetFY March 2023

[Source: Prepared by COMSYS Holdings based on NTT’s Supplementary Materials to the Financial Results for the Six Months Ended September 30, 2022]* 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.

20

IV-2. 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

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

docomoDec. 2021 standalone (Note 8)
docomo20,000 base stations (Note 1)
docomo12,000 base stations (Note 7)

10,000

Ministry of Internal
Affairs andCommunications’
5G introduction
guidelines

docomoMarch 31, 2024
90% coverage (Note 8)

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 5) Additional 1.7GHz band
allocation
stations (Note 5)
Approx. 30,000 basestations (Note 5)
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. Ministry of Internal Affairs and Communications, information on Authorization of Establishment Plans
6. Ministry of Internal Affairs and Communications, Digital Garden City Nation Infrastructure Development Plan, March 29, 2022

Ministry of Internal Affairs andCommunications Targets (Note 6)(Including 4G use)

Population coverage Base stations

Mar. 2024
Mar. 2026
Mar. 2031

95%
97%
99%

7. New Product Presentation 2021-2022 Winter/Spring, October 6, 2021
8. Press releases appearing in the Nikkei Newspaper

280,000
300,000
600,00021

IV-3. Trends in NTT Mobile Business
The COMSYS Group will aim to achieve the full-year targets
by stabilizing operations and enhancing efficiency.
• DOCOMO is accelerating 5G expansion to 90% population coverage.
• The COMSYS Group will aim to achieve the full-year targets by ensuring completion of processes concentrated in the 2H through stabilizing
and bringing forward operations.
• The COMSYS Group will maximize earnings for the mobile business overall, including NCC, by mobilizing human resources.
Sales of NTT Engineering business–MB(Simple total of eight companies)(Unit: ¥100 million)

582
260
First Half-74

Full YearFY March 2022

NTT DOCOMO Communications Capex(Unit: ¥100 million)

5,243
*

2,310

-14%

First Half Full YearFY March 2022

-0%

-122

460
186

First Half Full Year Target

FY March 2023

Status of NTT DOCOMO
March 2024 Aim to achieve 90% 5G population coverage

5,210

1,985
First Half Full Year Target

FY March 2023

* Figures for 1H FY March 2022 classified into new segments
Source: Prepared by COMSYS Holdings based on NTT’s Supplementary Materials
to the Financial Results for the Six Months Ended September 30, 2022
Source: NTT DOCOMO news release materials(COMSYS Holdings translation of Japanese websites for readers’ convenience)https://www.docomo.ne.jp/info/news_release/2022/03/11_02.html

22IV-4. Trends in NCC Business
Orders received and net sales grew due to active constructionof base stations by each company and other factors.
• The COMSYS Group will aim to achieve further growth of orders received and net sales by effectively utilizing the Group’s mobile specialists.
• The Group will endeavor to capture new business opportunities, such as 3G and PHS removal work, which will contribute to the growthof orders received and net sales.
• The Group will engage in aggressive sales activities to expand its business territory to infrastructure sharing companies and others.

Consolidated Sales of NCC Engineering Business

530

560

+29

Status of KDDI
(Unit: ¥100 million)

Satellite Growth Strategy
5G-driven evolution of the telecommunications business andexpansion of focus areas with telecommunications at the core
LX

220

+30

250

Space

DX
5G
Communications

Education

Mobility

EnergyFinance
Regional
co-creation

Healthcare-CATV, etc.-

First Half

Full YearFY March 2022

First Half Full Year Target

FY March 2023

Source: New Mid-Term Management Strategy (March FY23–March FY25),
presentation materials published May 2022, KDDI CORPORATION

Status of Rakuten Mobile

Status of SoftBank

June 2022 Achieved 97.6% 4G population coverage

Concentrate FY2022 investment in 5G* Subject to delivery status of equipment for base station construction

Source: CEO Presentation Materials for Q2 of FY2022, Rakuten Group, Inc.

Source: Softbank Corp, financial results briefing on the FY ended March 31, 202223

IV-5. Trends in IT Solutions Business
Drive achievement of full-year targets as key growth business segment• The COMSYS Group will aim to increase sales by expanding sales activities, despite the remaining impact of semiconductor shortages and yen depreciation.
• The Group will grow recurring business and further strengthen approaches to public sector and education projects in strong need of digital transformation.
• The Group will expand its business by further strengthening integrated Group management and making effective use of Group resources.
Consolidated Sales of IT Solutions Business■ Software development■ Solutions■ Maintenance

1,140

+126

1,013

324

307

401
139
227
34
First Half

+12

638
67
Full YearFY March 2022

413
147
232
33

First Half

SoftwareDevelopment

Solutionsl Development of environment for integrated IT systems of
public agencies
l Cybersecurity introductionl Construction of storage and processing infrastructure for
information and data of medical research centersl Local government information security cloud renewal

745
70
Full Year Target

FY March 2023

Main orders received in each sectorl Development of smartphone service operation data platform
and monitoring automationl AI image diagnostics for power distribution facilities of electric
power companies
l Update of healthcare center imaging and screening systems(Unit: ¥100 million)

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

Strengthening
Infrastructurel Integration of Tokyo metropolitan area sales and construction
organizations (IT platform + software development)l Development of advanced engineers for sales with consultation,
cloud computing, agile development, etc.
l Effective leveraging of telecommunications carrier-related andother COMSYS Holdings resources24

IV-6. Trends in Social System-Related Business
Revising full-year targets as external factor risks become evident in renewable energy business• In the infrastructure and other sector, the COMSYS Group plans active participation in undergrounding of utility poles, water supply and sewerage,
and river basin flood prevention work.
• In the renewable energy sector, targets have been revised downward, and the COMSYS Group will proceed while conducting careful assessments of supply delays,
soaring parts and material prices and other risk factors.
• In the electric facilities and communication sector, the COMSYS Group will focus on expanding areas related to expressway and Ministry of Defense facilities
and developing the data center (DC) project business.
Consolidated Sales of Social System-Related Business

1,847■Infrastructure and Other■Renewable Energy■Electric Facilities

1,029

808
469

249
146

348

First Half Full YearFY March 2022

Main orders received in each sector

Infrastructure
and Otherl Nagoya City sewerage construction projectl Chikumagawa River improvement project

Renewable
Energyl Solar power plant constructionl Hydrogen pipeline POC testingElectric
Facilitiesl Expressway electric and communication facilities constructionl Haneda Airport perimeter security facilities construction

667
426
116
124

369

269
412

(Unit: ¥100 million)

1,187

1,187
-140

412

1,970

1,870

+23

-100

First Half Revised
Targets

FY March 2023

412
InitialTargets

Initiatives in Social System-Related BusinessNew business
Developmentl Focusing on developing projects with new businessmodels (PFI, DC, construction of electric facilities)l M&A

Strengthening
Infrastructurel Strengthening capabilities to win orders through virtualcompany structurel Developing managing engineers and multi-skilled
engineersl Improving productivity by promoting digital transformation25

IV-7. Promotion of Digital Transformation
Promote operational consolidation and improvement using common IT platform• The COMSYS Group will promote consolidation of backyard operations using common IT systems throughout the Group.
• The Group will accommodate diverse work styles by making telework a regular work style option to increase motivation and utilize diverse human resources.
• The Group will promote further operational improvements by generating new ideas based on thorough data visualization and benchmarking.

Goals

FY2023

FY2022

FY2021
To DateFutureGroup Optimization

Develop Common System Platform
Completed standardizationof mobile systems

Standardized business systems

Standardized accounting systems

Completed standardizationof fixed-line systems

Completed standardization of
accounting systems• Increase productivity byconsolidating backyard
operations, etc.

Introduce human resources development system

Support for diverse
work styles

Making Telework Common Work Style Option
Automation and labor savings (utilization of RPA)
Remote access
Expanding communication tools• Increase employee motivation
and utilize diverse humanresources by supporting
diverse work styles

Developing paperless operations

Utilization ofdata

Use of Data
Data visualization and benchmarking
Promotion of PDCA cycle• Promotion of further operational
improvements by proposing
data-based ideas

26

IV-8. 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

469
383

303

Mar. 2019

293

Mar. 2020

Mar. 2021

Mar. 2022

Human Resources

Strengthen Corporate Governancel Increase percentage of women among new graduate hires(April 1, 2022: 19.6%)
Target: 30% by March 2025l Transitioned to a “company with audit and supervisorycommittee” structure (2017)l Increase percentage of women in management positions(May 2022: 48 women managers)
Target: At least 30% increase by March 2025
(Increase by 15 or more, compared with April 2021)

269

l Employ non-Japanese nationals(As of June 29, 2022: 9 employees)

Mar. 2023
PlannedGovernance (G)l Established Nomination and Remuneration Advisory
Committee (2017)l Ratio of Outside Directors: 1:3 (5 out of 14)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
Infrastructurel 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)

Reduce Environmental Impact
l Endorsement of TCFD and Establishmentof GHG Emission Reduction Targets• FYE March 31, 2031 targets:
42% reduction (Scopes 1 and 2) and 25% reduction (Scope 3)
from FYE March 31, 2021
• Aim to be carbon-free (Scopes 1 and 2) by FYE March 31, 2051

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.)

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)

27

IV-9. 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)

28

V. Shareholder Returns Policy

V-1. Shareholder Returns Policy(Dividends and Acquisition of Treasury Shares)

Additional ¥2.0 billion acquisition of treasury shares to achieve a target total return ratio of 70%.
ProfitTotal Dividends(Unit: ¥100 million)

203 8058

Dividends
Per Share

Purchase of Treasury Shares

280
51

[228]

Profit(Targets)

Negative
Goodwill

80
72

259 80293 70292 80

95

106

117

of
70 Purchase
Treasury

260

↑

50

SharesTotal

122 Dividends

March 2018

March 2019*

March 2020

March 2021

March 2022

March 2023
(Planned)

Interim

¥25

¥30

¥35

¥40

¥45

¥50

Year-end

¥25

￥30

¥40

¥45

¥50

¥50

37.0%

36.5%

40.3%

46.7％

67.5%

60.2%

67.5%

73.6％

Consolidated
Payout Ratio

28.0%

Total Return Ratio

26.1%[32.0％]

54.5%

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

ROE

9.4%

8.6%

9.2%

8.8％

* Figures in [ ] are estimates assuming no negative goodwill.

[66.8％]

10.6%[8.7％]（13.1％）——

30

Reference Materials

Reference Materials

1. Corporate History

32

Reference Materials

2. M&A History
Promoting expansion of peripheral businesses through capital alliances for top line expansion
TargetType

Business Segment

Industry
Restructuring-Type(Horizontal Integration)

Carrier-related business(NTT and NCC
Engineering business)

Regional

Value Chain
Supplementation-Type(Vertical Integration)

Carrier-related business(NTT and NCC
Engineering business)

Nationwide(particularly Kanto, Meihan,
Shinetsu, Hokkaido)

l
l
l
l

IT Solutions

Nationwide(particularly Kanto, Meihan,
Shinetsu, Hokkaido)l System integratorsl Software development industry

Area

Results

Businesses

TSUKENl

NDS

Telecommunications construction industry

SYSKEN
Hokuriku Denwa Kouji

Transportation security industry
Industrial waste treatment industry
Coating industry
Logistics and warehousing industry

Hokkaido Denden Yuso

Future focus
businesses(currently being
outsourced)

Toa Kenzai Kogyo

VACSLABCENTRAL BUILDING SERVICE

Ecosystem Japan
Kawanakajima Kensetsu

Business Territory
Expansion-Type

Social System-Related
and Other

Nationwide(particularly Kanto, Meihan,
Shinetsu, Hokkaido)

Air conditioning work
Electrical equipment contractors
Plant contractors
Road paving contractors
Urban infrastructure construction business(gas, sewerage, etc.)l Temporary staffing industryl Steel frame fabrication and construction business
l
l
l
l
l

Nippon After Kogyo
TOKYO HOSOH KOGYO
Kando
Hokuyu Construction
HokkohMaizuru Setsubi Kogyo
Asahi Setsubi Kogyo
FUJIKI Corporation
WORLD ECO Corporation

TSUKENFY March 2011…

CENTRAL BUILDINGSERVICE

Nippon After Kogyo

Ecosystem Japan

Toa Kenzai Kogyo

Kawanakajima Kensetsu Hokkaido Denden Yuso

FY March 2015

FY March 2016NDS
VACSLABSYSKEN

Hokuyu Construction

Asahi Setsubi Kogyo• Main business segments
Carrier-related business
IT Solutions
Social System

TOKYO HOSOH
KOGYO

Kando

Hokuriku Denwa Kouji

HokkohMaizuru Setsubi Kogyo

FUJIKI Corporation

WORLD ECO Corporation

FY March 2017

FY March 2018

FY March 2019

FY March 2020

FY March 2021

FY March 2022

FY March 2023

33

Reference Materials

3. Stock Information (As of September 30, 2022)
Number of Shares Issued and Number of Shareholders
Authorized:

580,000,000 shares

Issued:141,000,000 shares

Number of Shareholders:

22,274Composition of Shareholders(Number and percentage of shareholders by type)
Treasury stock 13.6%

Individuals 15.3% (21,523 owners)

Financial Institutions
43.0% (80 owners)

Foreign Companies and Individuals 19.0% (296 owners)

Others 5.5% (330 owners)

Shareholders

Securities Companies
3.6% (44 owners)

Shares Held(Thousands)

Percentage
of Total (%)

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

31,928

22.64

Custody Bank of Japan(Trust Account)

14,209

10.07

3,520

2.49

Nippon Life Insurance Company

3,247

2.30

JP MORGAN CHASE BANK 380055

2,508

1.77

COMSYS Holdings Corporation Employee Shareholder Association

2,207

1.56

NORTHERN TRUST CO. (AVFC) RE U.S. TAX EXEMPTED PENSION FUNDS

1,773

1.25

HSBC HONGKONG-TREASURY SERVICES A/C ASIAN EQUITIES DERIVATIVES

1,670

1.18

Sumitomo Realty & Development Co., Ltd.

1,661

1.17

Meiji Yasuda Life Insurance Company

1,554

1.10

NORTHERN TRUST CO. (AVFC) RE SILCHESTERVALUE EQUITY TRUSTINTERNATIONAL INVESTORS INTERNATIONAL*The Company holds its own shares as treasury stock (19,185 thousand shares) as of September 30, 2022 and those shares are excluded from the above list of major shareholders.

34Reference Materials

4. Organization Chart/Board Members (As of June 29, 2022)
Organization Chart

Directors and Audit & Supervisory Board Members
Title

Nomination and Remuneration
Advisory Committee

Board of Directors

Audit and Supervisory Committee

Name

President and Representative Director

Takashi Kagaya

Director

Kenichi Sato

Director

Yoshihisa Omura

Director

Satoshi Tamamura

Director

Hidehiko Ozaki

Director

Hideyuki Noike

Director

Kunihiko Uchide

Director

Tatsuya Kitaguchi

Director

President(Full Time Audit and Supervisory Committee Member)

Outside Director

Masahiko Miyashita*(Audit and Supervisory Committee Member)

Outside Director

Kenichi Nakatogawa*(Audit and Supervisory Committee Member)

Senior Management Committee

Sustainability Committee
Risk Management and Compliance
Committee
Personal Information Protection
Committee

Management Planning
Department

Business Expansion
OfficeDX Promotion
Department

IR Department

Financial Department

Atsushi Yasunaga

Outside Director

Koichi Kawana*(Audit and Supervisory Committee Member)

Outside Director

Hiroyuki Asai*(Audit and Supervisory Committee Member)

Outside Director

Hideo Yamamoto*(Audit and Supervisory Committee Member)*The five outside directors have been registered as independent officers with the Tokyo Stock Exchange.

General Affairs
Department

HR Department

Internal Control
Auditing Department

Internal Control
OfficeInternal Audit
Office35

— 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/