COMSYS VISION 2020
Annual Report 2018
Fiscal Year Ended March 31, 2018

COMSYS Holdings Corporation

Contents

1

Profile2

President’s Message

5

Business Integration with Three Telecommunications Construction Companies

6

Five Integrated Business Groups

8

Business at a Glance

10

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

12

Topics13

Corporate Governance18

Corporate Social Responsibility (CSR)

19

Financial Statements*
19 Consolidated Balance Sheets
21 Consolidated Statements of Income
22 Consolidated Statements of Changes in Net Assets
24 Consolidated Statements of Cash Flows
25 Ten-Year Summary of Business Results and Financial Data

28

Information
28 Investor Information

How to Use

29 COMSYS Holdings Information

Cautionary Statement with Respect to Forward-Looking Statements
Statements made in this annual report with respect to COMSYS Holdings’ plans and benefits as well as otherstatements that are not historical facts are forward-looking statements, which involve risks and uncertainties. Potential risks and uncertainties include, without limitation, general economic conditions in COMSYS Holdings’ markets,

To Contents

exchange rates, and COMSYS Holdings’ ability to continue to win customers’ acceptance of its products, which areoffered in highly competitive markets characterized by continual new product introductions and rapid developments in technology.
* Compiled based on the content of COMSYS Holdings’ Annual Securities Report submitted in Japanese.

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

1

COMSYS Holdings Corporation Annual Report 2018

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

President’s
Message

COMSYS Holdings Corporation (the “Company”) was established in September 2003 as a holding
ELEC Co., Ltd. (now SANWA COMSYS Engineering Corporation) and HIGASHI NIHON System
the Company and 50 subsidiaries and 6 affiliates, in addition to 5 core operating subsidiaries,
specifically Nippon COMSYS Corporation, SANWA COMSYS Engineering Corporation, TOSYS
Corporation, TSUKEN Corporation and COMSYS JOHO SYSTEM Corporation.
ranging from carrier-related electrical and telecommunications facilities to ICT related facilities andsocial system-related facilities, both of which have high growth potential. Social system-related
as solar power, and various infrastructure projects which support the foundation of social andeconomic activities.

Review ofOperations
and Outlook

COMSYS Group Management Philosophy

Business at a
Glancebusinesses include improvement projects of urban environments, renewable energy projects such

Five Integrated
Business Groups

The business domain of the COMSYS Group encompasses various construction businesses

Business Integration withThree Telecommunications
Construction Companies

Construction Co., Ltd. (now TOSYS Corporation). The COMSYS Group (the “Group”) consists ofTopics /Corporate
Governancestrive for strong partnership and collaboration with diverse external players
in achieving our management philosophy.

To Contents

We will continue with unrelenting reformin our aim to further increase corporate value.

Information

We will contribute to our country and local communities bybuilding social infrastructure that supports affluent lifestyles.

Financial
Statements

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

Corporate Social
Responsibility(CSR)

At the COMSYS Group, we are united as a Group and2

COMSYS Holdings Corporation Annual Report 2018

President’s Message

The COMSYS Group achieved
record highs in orders received,
net sales, and o­ perating income
for the FY ended March 2018.
We are committed to contributing
to the development of social
infrastructure by our continuous
self-reform.
September 2018

Takashi Kagaya
President and Representative Director

Business environment surrounding
COMSYS Group and the performance for
FY ended March 2018

our Group in July 2017. We also recorded our highest

In the information communications arena surrounding

Regarding profit, by improving construction efficiency

COMSYS Group, value-added content services arein completing the ample contract backlog, and boosting

expanding while service competition among mobile

productivity through work style innovation, we recorded

carriers is becoming increasingly fierce.

¥30.3 billion operating income and ¥20.3 billion net

In order to cope with this rapidly increasing mass traffic,
upgrading of mobile networks is in progress.

ever net sales of ¥380.0 billion by completing the ample
contract backlog.

income attributable to the shareholders of the parent
company, both of which are three year highs.

On the other hand, in public and private sectors, bothsocial infrastructure investment such as for national
resilience, promotion of renewable energy, Tokyo Olympic
and Paralympic Games related investment and ICT

Business environment and outlook of theperformance for FY ending March 2019

investment to utilize new innovations such as the Internet

Regarding the outlook for the FY ending March 2019,of Things (IoT) and Artificial Intelligence (AI) are expected

while the investment in public and private sectors is

to increase.

expected to increase due to national resilience, environ-To Contents

Under this favorable environment, as for the perfor-

ment and energy-related businesses, and the Tokyo

mance for the FY ended March 2018, we recorded our

Olympic and Paralympic Games, etc., capital investment

highest ever orders received of ¥402.2 billion partly due

by telecommunications carriers is on a declining trend,

to the contribution by integrating Kando Co., Ltd. into

and therefore, we expect a decrease in orders received.

3

COMSYS Holdings Corporation Annual Report 2018

Profilefrom completing the ample contract backlog and also

targets, we have continuously promoted our structuralfrom the revenue contribution by newly consolidated

reforms and endeavored to increase our top line ofsubsidiaries.

business by expanding businesses in the private sector
and acquiring new companies through M&A.

structural reform, improving productivity and reducing costs.

Further, in 2017, in order to accelerate our businessgrowth, we formulated a new growth strategy “COMSYSVISION 2020” to realize our mid- to long-term targets in the
FY ending March 2020 ahead of the original schedule.
To be more specific, we will undertake and promote

In 2014, the COMSYS Group formulated the 10-year management plan with specific targets for each business domain

the following main measures.

based on the outlook of the future business environments.

<Targets>

2. Operating income: ¥30 billion or more

2. Promotion of new renewable energy businesses

3. Increasing the ratio of the growth fields (IT solution
business and social system-related business) innet sales

3. Improvement of productivity through work styleinnovation
4. Continued implementation of M&A strategy

Review ofOperations
and Outlook

1. Net sales: ¥400 billion or more

1. Expansion of net sales and profit by leveraging
business company system

Business at a
Glance<Main measures>

Five Integrated
Business Groups

Mid- to long-term management strategy

Business Integration withThree Telecommunications
Construction Companies

We also plan to increase profit by promoting further

President’s
MessageIn order to realize the mid- to long-term management

President’s
MessageOn the other hand, we expect an increase in net sales

Topics /Corporate
GovernanceBusiness Environment

Growth Strategy

Core­Businesses
forGrowth●C ontinued vigorous investment in social infrastructure(National resilience, promotion of renewable energy,
Tokyo Olympic and Paralympic Games, etc.)
NTT Engineering Business
NCC Engineering Business● Trend of decline in capex at telecommunications carriers● Expectation of new investment related to mobile
telecommunications such as 5G (medium term)● Steady acquisition of
telecommunications
carrier investment

Promotion of IT platform
upgrading and application to
M&A companies and groupcompanies• Increased productivity• Develop and secure diverse humanresources• Increased competitivenessTo Contents• Work style innovation• Work flow standardization and optimization• Utilization of latest IT technologies such as IoT and AI• Promotion of increased human resource mobility
among group companies● Further increase inprofitability

Aggressive M&As
Flexible alliances
Cultivation of new businessInformation

GrowthPlatform● Expansion of net
sales

Financial
Statements

Core
Businesses
for Profit●E xpectation of new ICT investment (medium term)by utilizing IoT, AI and other technologies

Maximum use of management
resources through promotionof virtual companies(IT Solutions and Social
System-Related Business)

Corporate Social
Responsibility(CSR)

IT Solutions BusinessSocial System-Related

Specific Measures

4

COMSYS Holdings Corporation Annual Report 2018

Progress of “COMSYS VISION 2020”

For the dividends per share for the FY ended MarchAs for net sales of the FY ended March 2018, we achieved¥380.0 billion by completing the ample contract backlog,
and operating income of ¥30.3 billion, exceeding ¥30.0
billion which was our mid-term target. The ratio of thegrowth fields in total net sales has increased to 41.7%.
As for the net sales mid-term target, we will achieve itin the FY ending March 2019, one year ahead of ouroriginal plan.

2018, based on the above policy, we set a ¥50 annual
dividend (¥25 for interim and ¥25 for year-end) which isan increase of ¥10.
In addition, we acquired treasury stock of ¥8.0 billion
in order to further promote shareholder returns based on
our capital policy.
For the dividends per share for the FY ending March
2019, considering the expected business performanceand payout ratio, we are planning to pay a ¥60 annual
dividend (¥30 for interim and ¥30 for year-end) which isan increase of ¥10. Furthermore, we are planning toShareholder returns policy
COMSYS Holdings recognizes that the return of profit
to shareholders is one of the most important challenges
for management.

acquire treasury stock of ¥5.0 billion.
We invite all our stakeholders to look forward to our
initiatives at COMSYS Holdings.

Our basic policy is to achieve a stable and sustainabledividend payout considering our business performance.

Operating Results by Year
(Billions of yen)Move
Mid-term
Forward Targets

Operating income(Operating margin)

27.5

27.6

(8.3%)(8.4%)

23.8(7.4%)

25.0(7.5%)

30.3(8.0%)
380.0

Net sales
331.3

M&A

328.6

320.6

32.0

30.0

(8.0%)(7.5%)

400.0

400.0

67.9
67.9

334.1

GrowthSectors

92.7

114.1
21.3

Telecommunications
Carriers

238.6

218.0
(20.6)
Change from
FY ended
March 31. 2014

To Contents

FY2014

Start of the mid-term plan

FY2015COMSYS WAY α

FY2016FY2017FY2018FY2019TargetFY2020(Years ended March 31)

COMSYS VISION 2020

COMSYS Holdings Corporation Annual Report 2018

Additionally, they are focusing on the various construction

SYSKEN, and Hokuriku Denwa Kouji into COMSYS Group.

projects of public and enterprise customers such as

The main business of the NDS Group is the construction

network construction, putting telephone lines under-of the telecommunications infrastructure network forground, the construction of solar power facilities, as welltelecommunications carriers including the NTT Group in

as information system-related businesses including thethe Tokai and Hokuriku areas. Not only in the Tokai andsoftware development and the interactive broadcasting-Hokuriku areas, their business is also expanding into therelated business.
With this management integration, we will expand our

focusing on an expansion in contracted projects for public

services in the construction of infrastructure-related facili-

and enterprise customers such as construction of telecom-ties such as telecommunications, electricity, gas, andmunications facilities, electricity related works/engineeringrunning water, etc., by combining the technical capabilities

works, ICT related businesses, the installation and main-of each group.
Moreover, we will contribute to the stable and continu-

information system development, electronic money settle-

ous development of the entire Group business byment for transportation systems, etc.

promoting the cross-organizational exchange of talent

The SYSKEN Group is operating mainly in the Kyushu

and by sharing know-how on construction safety andarea. Its core business is the construction of NTT-related

quality control management, as well as by sharing theinfrastructure facilities and integrated facilities including

IT platform.
We will pursue the maximization of business synergy by

cal/air-conditioning systems which will vitalize and develop

expanding group businesses in a broader spectrum, taking

the regional economy.

advantage of the strength of each Group company. We

The Hokuriku Denwa Kouji Group is operating mainlyof telecommunications infrastructure network for

improve corporate value further.

Financial
Statementsin the Hokuriku area. Its core business is the construction

will promote the growth strategy for the Group andCorporate Social
Responsibility(CSR)

the information communication infrastructure and electri-

Topics /Corporate
Governancetenance of semiconductor manufacturing equipment,

Review ofOperations
and Outlook

Tokyo metropolitan area and the Kansai area. They are

Business at a
Glancemunications construction companies, namely, NDS,

Five Integrated
Business Groups

telecommunications carriers including the NTT Group.

Business Integration withThree Telecommunications
Construction Companies
Business Integration withThree Telecommunications
Construction Companies

Effective October 1, 2018, we will integrate three telecom-

President’s
MessageBusiness integration with three telecommunications
construction companies in West Japan area

ProfileBusiness Integration with Three Telecommunications Construction Companies

5

Information

To Contents

6

COMSYS Holdings Corporation Annual Report 2018

Five Integrated Business Groups

As of March 2018, the COMSYS Group consistsof COMSYS Holdings and 61 subsidiaries/
affiliates. Its main businesses are the construction of electrical and telecommunications
facilities and ICT related facilities.
NipponCOMSYS
Corporation

SANWA
COMSYS
Engineering
Corporation

TOSYS
Corporation

TSUKEN
Corporation

Nippon COMSYS
Corporation

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

SANWA COMSYSEngineering Corporation

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

COMSYSJOHOSYSTEM
Corporation

Address:
17-1, Higashigotanda 2-chome, Shinagawa-ku,
Tokyo 141-8647, Japan
Establishment:
December 1951
Number of Employees:
Consolidated 6,349
Non-Consolidated 2,845
URL:
http://www.comsys.co.jp/(Japanese only)
Number of Consolidated Subsidiaries:
19 companies

To Contents

Address:
12-3, Koenji-Minami 2-chome, Suginami-ku,
Tokyo 166-0003, Japan
Establishment:
September 1947
Number of Employees:
Consolidated 1,478
Non-Consolidated 741
URL:
http://www.sancom-eng.co.jp/(Japanese only)
Number of Consolidated Subsidiaries:
3 companies

7

COMSYS Holdings Corporation Annual Report 2018

ProfileWith the NTT Group as its primary customer,
the TOSYS Group is engaged in the constructionof electrical and telecommunications facilities,of electrical and telecommunications facilities,
mainly in Hokkaido.

the COMSYS JOHO SYSTEM Group is primarily
engaged in the software development business,
mainly in Tokyo.

Information

With the NTT Group as its primary customer,

Financial
Statements

Business Activities

To Contents

Address:
23-14, Takanawa 3-chome, Minato-ku,
Tokyo 108-0074, Japan
Establishment:
April 2009
Number of Employees:
Consolidated 527
Non-Consolidated 374
URL:
http://www.comjo.co.jp/(Japanese only)
Number of Consolidated Subsidiaries:
1 company

Corporate Social
Responsibility(CSR)

COMSYS JOHO SYSTEM
Corporation

Topics /Corporate
Governance

TSUKEN Group is engaged in the construction

Review ofOperations
and Outlook

With the NTT Group as its primary customer, theBusiness at a
GlanceBusiness Activities

Address:
1-23, Kitashijounishi 15-chome, Chuo-ku, Sapporo,
Hokkaido 060-0004, Japan
Establishment:
April 1951
Number of Employees:
Consolidated 1,837
Non-Consolidated 894
URL:
http://www.tsuken.co.jp/(Japanese only)
Number of Consolidated Subsidiaries:
7 companies

Five Integrated
Business Groups

TSUKEN Corporation

Five Integrated
Business Groups

mainly in Nagano and Niigata.

Business Integration withThree Telecommunications
Construction Companies

Business Activities

Address:
1108-5, Higashiyama Aza, Watauchi, Wakaho, Nagano City,
Nagano 381-0193, Japan
Establishment:
January 1960
Number of Employees:
Consolidated 1,184
Non-Consolidated 659
URL:
http://www.tosys.co.jp/(Japanese only)
Number of Consolidated Subsidiaries:
4 companies

President’s
Message

TOSYS Corporation

8

COMSYS Holdings Corporation Annual Report 2018

Business at a Glance

NTT Engineering
Business

Orders Received/Net Sales(Year ended March 31, 2018)

Respective Areas of Business Operationsof Group Companies
Nippon COMSYS Group■SANWA COMSYS Engineering GroupTOSYS Group■TSUKEN Group■COMSYS JOHO SYSTEM Group(Billions of yen)
■ Orders received

45.9% 184.5■ Net sales

48.9% 185.9

Primary customers
NTT East and NTT West,NTT Communications, NTT DOCOMO

Business Domains

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

NCC Engineering
Business

Orders Received/Net Sales(Year ended March 31, 2018)

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

Business Domains■

To Contents

 elecommunications facilityT
construction business with
telecommunications carriers
other than the NTT Group(Billions of yen)Primary customers■ Orders received

9.8%

39.2

■ Net sales

9.4%

35.7

KDDI Group,
SoftBank Group

Business Activities

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

9

COMSYS Holdings Corporation Annual Report 2018

ProfileOrders Received/Net Sales(Year ended March 31, 2018)

15.0%

60.4

■ Net sales

15.6%

59.0

■

SANWA COMSYS Engineering Group■TOSYS Group■TSUKEN Group■COMSYS JOHO SYSTEM Group■

Primary customers
Various private-sector companies, public
offices and local government authorities

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

■

Business at a
GlanceBusiness Activities
Business at a
GlanceBusiness Domains■

Five Integrated
Business Groups■ Orders received

Nippon COMSYS Group

Business Integration withThree Telecommunications
Construction Companies(Billions of yen)

Respective Areas of Business Operationsof Group Companies

President’s
Message

IT Solutions
Business

Review ofOperations
and Outlook

Orders Received/Net Sales(Year ended March 31, 2018)

Respective Areas of Business Operationsof Group Companies■

SANWA COMSYS Engineering Group■TOSYS Group■TSUKEN Group■COMSYS JOHO SYSTEM Group

29.3% 118.0■ Net sales

26.1%

99.2

Primary customers
Public offices, local government authorities
and various private-sector companies

 lectrical facility constructionECommunication cable box(C.C. Box) construction■ Civil engineering construction■ Building construction andassociated construction■ Environment and eco-solutions

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

■■

To Contents

Business Activities

Information

Business Domains

Financial
Statements(Billions of yen)
■ Orders received

Corporate Social
Responsibility(CSR)

Nippon COMSYS Group

Topics /Corporate
GovernanceSocial System-Related
Business

10

COMSYS Holdings Corporation Annual Report 2018

Review of Operations and Outlook

NTT Engineering Business

NCC Engineering Business

Orders Received / Net Sales(Billions of yen)
300

Orders Received / Net Sales■ Orders Received■ Net Sales(Billions of yen)
50

■ Orders Received

39.2
203.5

184.5

184.5 185.9

175.5 183.0

35.0

27.4

25

150

0

28.4

38.0

35.7

■ Net Sales

2017.32018.32019.3(Forecast)0

2017.32018.32019.3(Forecast)

FY ended March 2018
Performance and Business Activities

FY ended March 2018
Performance and Business Activities

Because of the downturn after special demand for maintenance
operations such as the repair of a telecommunications cabletunnel which occurred in the FY ended March 2017, the amountof orders received for the FY ended March 2018 decreased significantly year on year. However, supported by the front-loaded
receipt of mobile phone related orders, the total amount of orders
was ¥184.5 billion, still better than the plan by ¥4.5 billion.
Partly because the favorable progress of mobile phone-related
construction offset the net sales decrease of maintenance processes, net sales grew by ¥1.4 billion year on year to ¥185.9
billion, which was better than the plan by ¥1.4 billion.

Although carriers tended to decrease capital investment in theFYs ended March 2016 and 2017, the orders received for the FY
ended March 2018 significantly increased by ¥10.7 billion year
on year to ¥39.2 billion, thanks to the increases in the construction for base stations for KDDI (au), and countermeasure workfor the poor reception of television radio waves.
Because of such aggressive investments by carriers, net sales
increased significantly by ¥8.3 billion year on year to ¥35.7 billion,
which was better than the plan by ¥6.2 billion.

Outlook for FY ending March 2019
In regard to the receipt of orders, due to the influence of thefront-loaded receipt of orders for mobile phone-related businesses in the previous fiscal year, the receipt of orders is expected
to decrease by ¥9.0 billion year on year to ¥175.5 billion.
Net sales will also decrease by ¥2.9 billion year on year to¥183.0 billion, because of the gradually decreasing trend of thecapital investment by NTT-affiliated companies.

Future Outlook

To Contents

The capital investment for the fixed-line related businesses
from both NTT East and NTT West tends to decrease gradually
every year.
However, the investment for FTTH facilities by both NTT Eastand NTT West for the FY ending March 2019 is expected toincrease against the FY ended March 2018. We are, therefore,
expecting an increase in the receipt of orders related to a
migration to Flet’s Hikari from ADSL, ISDN, etc.
Although the capital investment of NTT docomo also tends
to decrease gradually, the construction of base stations for the
3.5 GHz band is expected to increase to full-scale and the volume
of construction is expected to stay at a high level for the FY
ending March 2019.
Moreover, although the construction of base stations for the
3.4 GHz band and for 5G will be executed on a full-scale in andafter the FY ending March 2020, we may begin to receive orders
as early as the second half of the FY ending March 2019. We
will, therefore, endeavor to win the receipt of such orders.

Outlook for FY ending March 2019
Although the construction of base stations for carriers is still
expected to stay at a high level, the receipt of orders for countermeasure work for the poor reception of television radio waves
will decrease, and we estimate that the receipt of orders will be¥38.0 billion, a decrease of ¥1.2 billion year on year. Likewise, weestimate that net sales will be ¥35.0 billion, a decrease of ¥0.7
billion year on year.

Future Outlook
The capital investment by both KDDI and the SoftBank Groupfor the FY ending March 2019 is expected to increase. The
volume of construction for mobile base stations is expected tostay at a high level as in the previous fiscal year.
As for the countermeasure work for the poor reception of
television radio waves, although the areas subject to such countermeasures will increase, the number of the construction projects
we are in charge of is expected to decrease.
Regarding Rakuten, which will newly participate in the market
as the fourth mobile carrier, although we regard it as a new
business chance, we have not incorporated it into the plan for
the FY ending March 2019. We aim to receive orders from
Rakuten for the construction of their mobile network facilities
in and after 2019.

COMSYS Holdings Corporation Annual Report 201811

ProfileSocial System-Related Business

Orders Received / Net Sales(Billions of yen)
80

Orders Received / Net Sales■ Orders Received

55.0

60.4

59.0

64.0

(Billions of yen)200

■ Orders Received■ Net Sales

60.0
122.5

118.0

100

40

122.0

99.2
82.8
67.1

2017.32018.32019.3(Forecast)0

2017.32018.32019.3(Forecast)

Although the corporate solutions business was stagnant andthe amount of receipt of orders fell short of the plan, the receipt
of orders for the alliance sector (Cloud and IT platform, etc.)
and for software development was favorable enough to compensate for the shortfall of the corporate solutions business,
resulting in a total amount of orders of ¥60.4 billion, an increaseby ¥5.1 billion year on year.
As for net sales, although the corporate solutions businessfell short of the plan, the total amount of the net sales increased
to ¥59.0 billion, an increase of ¥4.0 billion year on year, thanks
to an increase in software development.

Because of the consolidation of Kando Co., Ltd. in July 2017
and the winning of big projects, orders received increased
significantly to ¥118.0 billion, an increase of ¥35.1 billion year
on year.
Because of the consolidation of Kando, net sales also significantly increased to ¥99.2 billion, an increase of ¥32.1 billion year
on year. However, it fell short of the plan due partly to a delayin the construction work for solar power facilities.

Future Outlook

Information

To Contents

We regard the social system-related businesses as a growthfield. We will aim to expand the business in three areas; theelectronic telecommunications area, the renewable energy area
and the infrastructure area such as civil engineering for cleanwater supply/sewerage as well as agricultural water.
In the telecommunications field, we aim to focus on the fields
where we can demonstrate our comprehensive strength andreceive the orders of electric telecommunications facilities
together with orders related to architecture and air conditioning
systems, such as installation of the electric facilities and equipment for plant systems, the reconstruction of buildings and theconstruction of data centers.
In the field of renewable energy, we started our first projectof wood biomass power-generation which is an Independent
Power Producer (IPP) business. We will endeavor to win thereceipt of orders in the Engineering, Procurement and Construction (EPC) businesses, taking advantage of our experience that
we obtained through the IPP business. In the infrastructure field,
we aim to expand businesses such as the Private Finance Initiative(PFI) projects of putting telephone lines underground promotedby the Ministry of Land, Infrastructure, Transport and Tourism
as well as clean water and sewerage projects.

Financial
Statements

We regard the IT solution business as a growing business. We
will undertake an aggressive business expansion by the introduction of the business company system and the strengthening of
the alliance with strategic vendors.
In the IT solution businesses, we will concentrate on an alliancein fields where the growth potential is high, such as Cloud andIT bases and data centers. Moreover, we will challenge thecreation of new businesses in IoT and security-related areas in
the field of solutions for corporations, as well as new businesses
which utilize AI and Robotic Process Automation (RPA) in thefield of software.

Future Outlook

Corporate Social
Responsibility(CSR)

Thanks to the newly consolidated company (VACSLAB Co., Ltd.
is newly consolidated from April 2018) as well as to the effectof the introduction of the business company system, we expectthat the receipt of orders will be ¥64.0 billion, an increase of¥3.5 billion year on year and net sales will be ¥60.0 billion, an
increase of ¥900 million year on year.

For the FY ending March 2019, because Kando will contributeto the business results through the fiscal year in full, and theintroduction of the business company system will effectively
contribute to the business, we estimate that the receipt of orders
will be ¥122.5 billion, an increase of ¥4.4 billion year on year,
and net sales will be ¥122.0 billion, an increase of ¥22.7 billion
year on year.

Topics /Corporate
GovernanceOutlook for FY ending March 2019

Outlook for FY ending March 2019

Business at a
GlanceFY ended March 2018
Performance and Business Activities

Review ofOperations
and Outlook
Review ofOperations
and Outlook

FY ended March 2018
Performance and Business Activities

Five Integrated
Business Groups

0

Business Integration withThree Telecommunications
Construction Companies

55.3■ Net Sales

President’s
Message

IT Solutions Business12

COMSYS Holdings Corporation Annual Report 2018

TopicsCOMSYS Group is developing awood biomass power-generation
project for the first time

Starting the business of small-sized
wind power generation

Nippon COMSYS Corporation will begin the wood biomass

SANWA COMSYS Engineering Corporation signed a dis-

power-generation business in Makurazaki city, Kagoshimatribution agreement with Solid Wind Power A/S (SWP) in

Prefecture through “Makurazaki Biomass Energy G.K.,”

June 2016, and started the business of import, sales, con-established in October 2017 as a power-generation com-

struction, and maintenance of small-sized wind powerpany, and “Makurazaki Biomass Resource G.K.,” establishedgeneration facilities.
In July 2017, SWP-19.8 kW, a small-sized wind powerin November 2017 as a wood fuel producing company ingeneration system manufactured by SWP, acquired a small

partnership with Maeda Sangyo K.K.
Makurazaki Biomass Energy G.K. generates electricity

wind turbine type certification from Nippon Kaiji Kyokai.

by using 100% domestic forest resources, mainly the

In November 2017, we installed the first plant in Shichinohe-

unused barks produced in Kagoshima Prefecture. The

machi, Aomori Prefecture. We will contribute to promo-commercial operation is scheduled to begin in 2020. Thetion of renewable energy and reduction of environmental

power generation scale is 1,990 kW, all of which is goingburden through the whole business from construction toto be sold to Kyushu Electric Power Co., Inc.

maintenance of small-sized wind-power generation

Makurazaki Biomass Resource G.K. collects all woodin the region and supplies the wood usable for construc-facilities based on the know-how obtained from our solar
power generation business.

tion to mills, while supplying the other low quality conifer
wood and barks for power generation use.
Both companies will contribute to the promotion ofregional employment as well as to the formulation of asustainable recycling society.

Makurazaki Biomass Resource G.K.

TimberBark collection point
Supply offuel wood

Bark

Lumberbusiness

Supply offirewood
Export highvalue-added
lumberSale ofelectricity
Kyushu ElectricPower Co., Inc.

Supply oflumber

Supply offuel chip

Wood biomass power
generation plant

Makurazaki Biomass
Energy G.K.

Chip manufacturing

Driedbonito factory

Small-sized wind-power generation
facility installed in Shichinohe-machi,
Aomori Prefecture

To Contents

COMSYS Holdings Corporation Annual Report 2018

ProfileCorporate Governanceto entrench measures such as ensuring appropriate
information disclosure, promoting the observance ofcompliance, strengthening risk management, rigorously

The COMSYS Group recognizes that it is important toimplementing the COMSYS Group’s code of conduct,

strengthen corporate governance in order to improvesociety based on our business activities.

Group aims to be a company that possesses the ability
to win the trust and admiration of all stakeholders
through its actual performance.
tial to establish the transparency and soundness of

The Company transitioned to the company with audit andcorporate management, and makes all possible efforts

supervisory committee system as its corporate governanceElection / Dismissal

Directors who are
Audit and Supervisory
Committee members

Election / Dismissal

Form andparticipate

Directors

Audit and Supervisory
Committee

Board of Directors

Audit andsupervise

Election /Dismissal / Supervise

Audit and supervise

Independent
Auditor
Audit

Form and participate

Internal Control and
Audit Department

Instruct /ReportExecutive
Department

VariousCommittees
Management
Monitoring

Deliberate /ReportDisseminate
Information

COMSYS Group
Presidents Committee(As of June 26, 2018)

To Contents

COMSYS Group
Nippon COMSYS Corporation, SANWA COMSYS Engineering Corporation, TOSYS Corporation,
TSUKEN Corporation, COMSYS JOHO SYSTEM Corporation, COMSYS Shared Services Corporation

Information

Internal Audit /ReportPresident(Senior Management Committee)

Financial
Statements

Internal
Audit

Instruct /ReportCorporate Social
Responsibility(CSR)

Cooperation

ReportNomination andRemuneration
Advisory Committee

Topics /Corporate
Governance
Topics /Corporate
GovernanceForm

Consultation

Review ofOperations
and Outlook

General Shareholders’ Meeting

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

Five Integrated
Business Groups

Organizational Structure

To do this, the COMSYS Group considers it is essen-

Business Integration withThree Telecommunications
Construction Companies

strengthening internal control, and contributing tocorporate value. By striving to achieve this, the COMSYSElection / Dismissal

President’s
Message

Basic Corporate Governance
Philosophy

Cooperation

13

14

COMSYS Holdings Corporation Annual Report 2018

system at the 14th General Shareholders’ Meeting, held

The Senior Management Committee is made up of

on June 29, 2017. The system comprises a General Share-directors other than outside directors and the standing

holders’ Meeting, Board of Directors, Audit and Supervi-

Audit and Supervisory Committee members. In principle,

sory Committee and other organizations.

this committee meets once a month to examine, discuss,

The audit and supervisory committee system isand pass resolutions on issues related to key decisions, incharacterized by strengthening the supervisory functions

an effort to improve the efficiency of business execution.

of the Board of Directors with a structure for conducting

The heads of each operating department and certain

rapid decision-making. The Company aims to achieve

other personnel attend meetings of the Senior Management

this with the transition to this system, and to further

Committee as observers, as necessary, to ensure that they

increase its corporate value.

fully understand the basis for all management decisions.

The Board of Directors comprises internal directors
well versed in the Company’s operations and outside
directors who monitor management from an independent standpoint, with the aim of enhancing management
efficiency. Meanwhile, the Company has reinforced
auditing functions with its Audit and Supervisory Committee members in order to ensure and enhance soundmanagement.

Status of the Internal Control System
The Company implements its internal control system
based on a “Basic Policy on Establishing an Internal
Control System” that was approved by resolution of theBoard of Directors as follows.

The Company delegates important decisions on
business execution to directors in accordance with theprovisions of its Articles of Incorporation and by the
resolution of the Board of Directors.

Establishing a Compliance Structure
The Company has formulated its internal ComplianceThis system enables swift decision-making and nimble

Program, has set forth Compliance Action Guidelines

business execution, while allowing the Board of Directors

within this framework, and has established the Compli-

to focus exclusively on supervision of business execution.

ance Committee.

As of June 26, 2018, the Board of Directors comprises

This committee, which is chaired by the president, is

10 directors and 6 directors who are also Audit andmade up of representatives from the Company and eachSupervisory Committee members, including outsideof the core operating subsidiaries, as well as all Audit

directors. The board holds regular meetings in accor-

and Supervisory Committee members. The committee

dance with the Board of Directors Rules, as well as ad

oversees compliance throughout the COMSYS Group,

hoc meetings as required. The meetings are used to makeand strives to increase the COMSYS Group’s awarenessdecisions on statutory matters as well as important mat-of compliance and establish an effective complianceters related to management, and to carry out supervision

structure through various discussions. All COMSYSof those executing business.

Group companies have set up similar compliance com-

To Contents

Every quarter, the directors responsible for each busi-

mittees of their own. These committees work to establish

ness segment report to the Board of Directors on progressan effective compliance structure by implementing

with business execution based on policies determinededucational and training programs, as part of efforts toby the Board. Also, each business segment conducts

deepen employee understanding of the corporate

efficient operational management under the supervisionphilosophy and action guidelines of each respectiveof the responsible director.

COMSYS Group company.

COMSYS Holdings Corporation Annual Report 201815

ProfileIn its efforts to maintain and enhance corporate value amid
a rapidly changing business environment, the COMSYS

addressing various themes, such as compliance, corporate governance, risk management, information disclosure and protection, security countermeasures, social
contributions and environmental issues.

must be managed appropriately. Therefore, the Group has
established a Risk Management Committee, chaired by
the president and made up of directors from the Company

Important documents and records related to businessin order to promote Group-wide risk management.

activities and execution of directors’ duties, including

Furthermore, similar risk management committees wereminutes of the Board of Directors and Senior Manage-

established at each Group company. In this manner,

ment Committee meetings and other reports, are stored

efforts are being made to properly address the businessand managed appropriately based on laws and regula-risks faced by each Group company, and to minimize

tions, as well as the Group’s internal rules.

the materialization of each risk.

Furthermore, in order to improve the efficiency of

Guidelines and Crisis Management Guidelines and will

adequate level of information security, the Company isstrive to maintain sustainable operations and ensure

working to deploy various information systems to put insteady growth at the Company and the COMSYS Group

place a framework for sharing the latest management

by practicing effective risk management.

information.

For example, the COMSYS Group manages operational risk by ensuring that Group companies work in

Business management of the core operating subsidiar-and Privacy Mark certifications given the actual working

ies, which are the major subsidiaries of the COMSYS

environments at each Group company. As a result, theGroup, is based on the “COMSYS Group Agreement.”

COMSYS Group acquires and maintains certification in

In addition, each core operating company conducts thethese systems.

management of the subsidiaries in which they havedirectly invested. As regards the business management

The Company and the COMSYS Group have estab-to be conducted by the core operating subsidiaries, theCompany possesses a Group operations system thatprovides guidance and advice as necessary.
Important management decisions within the COMSYSCSR activities with the aim of ensuring that the Group

Group are reported to and discussed by the Senioractively fulfills its economic and social responsibilities,

Management Committee and the Board of Directors inincluding social contribution activities, as a goodline with Group Operation Standards, which clarify

corporate citizen.

decision-making and reporting rules for the COMSYSTo Contents

lished the CSR Committee to coordinate Group-wide

Information

CSR Activities

Financial
Statements

Occupational Health and Safety Management System),

Corporate Social
Responsibility(CSR)

ISO 14001, ISO/IEC 27001, COHSMS (Construction

Establishing a Group Management
Structure

Review ofOperations
and Outlook

operations and business execution, after ensuring an

Topics /Corporate
Governance
Topics /Corporate
Governance

The Company has formulated Risk Management

accordance with management systems such as ISO 9001,

Business at a
GlanceThe Basic Policy on Risk Management was formulated

Five Integrated
Business Groups

and each of the core operating subsidiaries.

Establishing an Information­Management Structure

Business Integration withThree Telecommunications
Construction Companies

Group is aware that it faces a variety of business risks which

The CSR Committee is engaged in CSR activities
President’s
Message

Establishing a Risk Management
Structure

16

COMSYS Holdings Corporation Annual Report 2018

Group. In this manner, the Group management and

The Company and the COMSYS Group havemonitoring framework is centered on the Company.

prepared an organizational framework that enables them

The Company has established internal reportingto block the formation of a relationship with any antiso-

liaison contacts that cover the entire COMSYS Group,cial forces or groups, and to maintain a resolute andboth inside the Company and at a law firm external touncompromising attitude while coordinating with law-

the Company. The Company works to prevent corporate

yers, the police, and other relevant authorities.

impropriety by ascertaining reports from COMSYSGroup employees and others about facts that may
violate laws and regulations. The Company has also
made efforts to prevent unfair treatment of whistleblowers by setting up appropriate systems in line with theWhistleblower Protection Act.
In order to ensure that all COMSYS Group operations are carried out appropriately, the directors ofeach core operating subsidiary also participate as
members in the various Group committees establishedwithin the Company, including the CSR Committee,
the Compliance Committee and the Risk Management
Committee. In this way, the COMSYS Group ensuresthat all policies and decisions discussed by thesegroups are reported to and thoroughly understood byeach Group company.
In addition, the Group has formed the COMSYSGroup Presidents Committee, which is made up of thepresidents of COMSYS Group companies. This committee meets regularly and works to ensure that management policies and activities are clearly understood by
all members.

The Audit and Supervisory Committee
The Company’s internal auditing organization consistsof an Internal Audit Office and an Internal Control Officewithin the Internal Control and Audit Department.
The Internal Audit Office formulates internal auditing
policies based on top management requirements, andconducts internal audits of the Company and all Group
companies. These activities are intended to ensure thatbusiness execution is legal and appropriate, and thateach business risk faced by the Group is minimized,
while maximizing the quality of business operations.
The Internal Control Office formulates operational
internal control policies as regards financial reporting, andprovides leadership and evaluates the effectiveness of theinternal control systems in the Company and the Group.
The Audit and Supervisory Committee comprises six
members, four of whom are outside directors. To ensure
the effectiveness of the Audit and Supervisory Committee’s activities, the Company has established a systemby which the Audit and Supervisory Committee members
mutually elect a standing Audit and Supervisory Com-

System to Eliminate Antisocial Forces

mittee member who will attend important internal
meetings and committees such as the Senior Manage-

To fulfill our social responsibility as a company, thement Committee and the Compliance Committee as a

Company and the COMSYS Group have absolutely no

regular member to ensure that the member can con-relationship with any antisocial forces or groups thatstantly check the status of business execution andthreaten the order and safety of civic society. Moreover,provide opinions.

To Contents

the Company and the COMSYS Group will maintain a

In addition, based on the rules governing the Audit

resolute and uncompromising attitude in the face of any

and Supervisory Committee, directors and employees

attempts to form a coercive relationship.

of the Company and the Group are required to report

COMSYS Holdings Corporation Annual Report 201817

Profilethe Company’s operations or performance to the Audit
and Supervisory Committee members.
Furthermore, under the system, the Audit and Superand employees of the Company and the Group toprovide the above reports or other reports considerednecessary at their discretion.
hold regular meetings with the president to directly
express their views on issues related to business execution and other topics.
the Company constantly check whether business operations are executed appropriately and efficiently by
maintaining close ties with the Group’s independent
For example, the Audit and Supervisory Committee
members accompany the independent auditor andothers on on-site internal and financial audits as observFurthermore, the Audit and Supervisory Committee
members hold regular meetings with the corporate
auditors of the main Group companies to share informato maintain close coordination within the Group andensure the efficacy of audits.
If the Audit and Supervisory Committee requires
the committee’s needs with the Audit and Supervisory
Committee members and appoints organizations andsupervise the Company’s management, having either ofthe following experiences or qualifications.
(1) A person who has served as a corporate officer ormanagement team member at another company, having
a thorough knowledge of corporate management(2) A person with expert knowledge of laws, accounting,and so forth
All of the outside directors have either a wealth ofknowledge and wide-ranging insight from their longexperience in various industries and as corporate managers, or a high-level of ability and insight into the law asattorneys. They are expected to provide appropriate
advice from multiple perspectives.
Furthermore, the Company judges that the outside
directors will carry out their audits and supervision froman objective standpoint, and contribute to strengthening
the Company’s corporate governance.

Financial
Statements

assistants to assist with its duties, the Company discusses

emphasizes personnel who are able to advise andCorporate Social
Responsibility(CSR)

tion, exchange opinions, and engage in related activities

Companies Act and the Tokyo Stock Exchange, andTopics /Corporate
Governance
Topics /Corporate
Governanceers in accordance with the audit plans.

ers the conditions for independence specified by the

Review ofOperations
and Outlook

auditor and the Internal Control and Audit Department.

In appointing outside directors, the Company consid-

Business at a
GlanceThe Audit and Supervisory Committee members of

are Audit and Supervisory Committee members.

Five Integrated
Business Groups

The Audit and Supervisory Committee members also

The Company has four outside directors, all of whom

Business Integration withThree Telecommunications
Construction Companies

visory Committee members may request the directors

Outside Directors

President’s
Messageon major business activities or issues that could affectassistants.
are conducted after consultation with the Audit andSupervisory Committee members.

Information

The personnel matters and transfers of the assistants

To Contents

18

COMSYS Holdings Corporation Annual Report 2018

Corporate Social Responsibility (CSR)

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

Moreover, the Group will consider the environment as it

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

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

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

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

the CSR concept that we are contributing to the creation of

stakeholders, including customers, local communities,

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

meaningful relationships among people, and between people

activities to achieve sustainable growth.

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

COMSYS Group Value Creation Process

Realizing themid- to long-term vision

Shareholders

COMSYS Group
Business Activities

Outstanding
management resources

Business
expansion

Society

Corporate governancePursueContributereliability
to society
and safety
throughbusiness Human

Promotestructuralreformsresources

Enhance quality
and consider the environment

Customers

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

1

2

Human
EnhancePursueresources
reliability quality andconsidertheand safety
environment

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

Maximize
utilizationof human
resources

COMSYS VISION 2020
4

3

•Expand the top line
•Evolve structural reforms

Group
innovation• Expansion of net sales and profit by leveraging
business company system• Promotion of new renewable energy businesses• Improvement of productivity through work
style innovation• Continued implementation of M&A strategy

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

To Contents

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

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

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

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

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

goal, and boosting the realization of the medium- to

to strengthen governance, which is the management

long-term vision.

foundation that supports these activities.

19

COMSYS Holdings Corporation Annual Report 2018

ProfileFinancial Statements

President’s
Message

Consolidated Balance Sheets
COMSYS Holdings Corporation and Consolidated Subsidiaries
As of March 31, 2017 and 2018
2017

Millions of yen
2018

Cash and cash equivalents �������������������������������������������������������������������������������������������������������������

¥ 20,961¥ 29,144

Notes and accounts receivable—trade ����������������������������������������������������������������������������������������

114,322

121,826

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

2,572

2,719

Accumulated cost of construction in progress �����������������������������������������������������������������������������

19,617

24,607

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

77

120

Materials and supplies �������������������������������������������������������������������������������������������������������������������

518

682

Deferred income taxes �������������������������������������������������������������������������������������������������������������������

3,587

4,269
3,199

ASSETS(34)(54)

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

167,166

186,515

Business at a
Glance5,543

Five Integrated
Business Groups

Other current assets �����������������������������������������������������������������������������������������������������������������������
Less: Allowance for doubtful receivables �������������������������������������������������������������������������������������

Business Integration withThree Telecommunications
Construction Companies

Current assets:

Fixed assets:
Property and equipment:
56,994

61,982

Less: Accumulated depreciation �������������������������������������������������������������������������������������������

(28,052)(31,391)

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

28,94230,591

Machinery, vehicles and equipment �����������������������������������������������������������������������������������������

30,35535,176

Less: Accumulated depreciation �������������������������������������������������������������������������������������������

(16,934)(19,055)

13,42016,17140,18647,592

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

523

451
(287)

(270)
253

164

Construction in progress �����������������������������������������������������������������������������������������������������������

4,166

8,288

Total property and equipment ���������������������������������������������������������������������������������������������������

86,968102,748

Intangible assets:
5,969

4,002

4,094

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

4,669

10,063

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

11,154

12,956Long-term loans receivable �������������������������������������������������������������������������������������������������������

1,067

1,000

Deferred income taxes ���������������������������������������������������������������������������������������������������������������

333

399

Net defined benefit asset �����������������������������������������������������������������������������������������������������������

10,082

11,370

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

4,510

3,304

Less: Allowance for doubtful receivables ���������������������������������������������������������������������������������

(1,585)(166)

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

25,563

28,863Financial
Statements

666

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

Financial
Statements

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

Corporate Social
Responsibility(CSR)
Corporate Social
Responsibility(CSR)

Less: Accumulated depreciation �������������������������������������������������������������������������������������������
Lease assets, net ���������������������������������������������������������������������������������������������������������������������

Topics /Corporate
Governance

Machinery, vehicles and equipment, net ������������������������������������������������������������������������������
Land ���������������������������������������������������������������������������������������������������������������������������������������������

Review ofOperations
and Outlook

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

Investments and other assets:

141,676¥328,192

To Contents

117,201¥284,367

Information

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

20

COMSYS Holdings Corporation Annual Report 2018

2017

Millions of yen
2018¥ 55,577¥ 59,749

LIABILITIESCurrent liabilities:
Accounts payable—trade ���������������������������������������������������������������������������������������������������������������
Short-term bank loans �������������������������������������������������������������������������������������������������������������������

113

106

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

2,088

7,815
2,873

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

1,291

Allowance for warranty work on construction projects ���������������������������������������������������������������

206

176

Allowance for losses on construction contracts ���������������������������������������������������������������������������

297

548

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

11,712

11,566

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

71,28982,836

3,084

3,499

Long-term liabilities:
Deferred income taxes �������������������������������������������������������������������������������������������������������������������
Deferred tax liabilities for unrealized gains on land revaluation ������������������������������������������������

1,369

1,369

Net defined benefit liability �����������������������������������������������������������������������������������������������������������

4,355

7,263

Allowance for directors’ retirement benefits �������������������������������������������������������������������������������

257

271

Other long-term liabilities �������������������������������������������������������������������������������������������������������������

1,068

1,185

Total long-term liabilities ���������������������������������������������������������������������������������������������������������������

10,134

13,588

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

81,42396,424

NET ASSETS
Shareholders’ equity:
Common stock �������������������������������������������������������������������������������������������������������������������������������

10,00010,000Additional paid-in capital ���������������������������������������������������������������������������������������������������������������

52,52560,833201,329

Retained earnings ���������������������������������������������������������������������������������������������������������������������������

186,195

Treasury stock, at cost ���������������������������������������������������������������������������������������������������������������������

(41,028)(38,014)

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

207,692

234,199

Unrealized gain on other securities �����������������������������������������������������������������������������������������������

2,666

3,795

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

(7,990)(7,905)Remeasurements of defined benefit plans �����������������������������������������������������������������������������������

(650)

30

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

(5,974)(4,079)Subscription rights to shares ���������������������������������������������������������������������������������������������������������

578

513

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

647

1,134

Accumulated other comprehensive income:To Contents

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

202,943

231,767

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

¥284,367¥328,192

21

COMSYS Holdings Corporation Annual Report 2018

ProfilePresident’s
Message

Consolidated Statements of Income
COMSYS Holdings Corporation and Consolidated Subsidiaries
Years ended March 31, 2017 and 2018
2017

Millions of yen
2018¥334,163¥380,024

288,440

326,591

Gross profits �����������������������������������������������������������������������������������������������������������������������������������������

45,72353,433

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

20,68623,085

Operating income ���������������������������������������������������������������������������������������������������������������������������������

25,03630,347

Other income:
15

14

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

179

227

Rent income on noncurrent assets ���������������������������������������������������������������������������������������������������

91

158

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

164

248

Total other income �����������������������������������������������������������������������������������������������������������������������������

451

647

Five Integrated
Business Groups

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

Business Integration withThree Telecommunications
Construction Companies

Net sales �������������������������������������������������������������������������������������������������������������������������������������������������
Cost of sales �������������������������������������������������������������������������������������������������������������������������������������������

87

Foreign exchange losses �������������������������������������������������������������������������������������������������������������������

0117

Commission for purchase of treasury stock �������������������������������������������������������������������������������������

21

15

Depreciation of idle assets ����������������������������������������������������������������������������������������������������������������

35

31

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

63

86

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

18

29

Total other expenses �������������������������������������������������������������������������������������������������������������������������

147

288

Recurring profit �������������������������������������������������������������������������������������������������������������������������������������

25,34130,706

Gain on sales of fixed assets �������������������������������������������������������������������������������������������������������������

24

16

Gain on sales of investment securities ���������������������������������������������������������������������������������������������

161

0

Reversal of allowance for doubtful receivables �������������������������������������������������������������������������������

328

927

Gain on exchange from business combination �������������������������������������������������������������������������������

84—

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

49

30

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

649

974

114

83

Loss on impairment of fixed assets ���������������������������������������������������������������������������������������������������

391

494

Amortization of goodwill �������������������������������������������������������������������������������������������������������������������

2,273

—

Special payments on employees’ retirement benefits �������������������������������������������������������������������

163

102
139

Review ofOperations
and Outlook

Interest expenses �������������������������������������������������������������������������������������������������������������������������������

Business at a
GlanceOther expenses:

Extraordinary income:

22,80730,861

Current �������������������������������������������������������������������������������������������������������������������������������������������������

8,958

10,857

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

(663)

(440)

Income taxes:

8,295

10,417

14,512

20,444

Net income attributable to non-controlling interests �������������������������������������������������������������������

26

53

Net income attributable to owners of parent ���������������������������������������������������������������������������������

¥ 14,485¥ 20,390

To Contents

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

Information

819

Income before income taxes and other adjustments to net income �������������������������������������������

Financial
Statements

239
3,183

Financial
Statements

Other ���������������������������������������������������������������������������������������������������������������������������������������������������
Total extraordinary loss ���������������������������������������������������������������������������������������������������������������������

Corporate Social
Responsibility(CSR)

Loss on disposal of fixed assets ��������������������������������������������������������������������������������������������������������

Topics /Corporate
Governance

Extraordinary loss:

22

COMSYS Holdings Corporation Annual Report 2018

Consolidated Statements of Changes in Net Assets
COMSYS Holdings Corporation and Consolidated Subsidiaries
Years ended March 31, 2017 and 2018Year ended March 31, 2017

Commonstock

Additional
paid-in
capitalRetainedearnings

Balance at the end of the previous period ���������������������������������

¥10,000¥51,264¥176,847

Millions of yen
Shareholders’ equity
TreasuryTotalstock,
shareholders’at costequity¥(36,008)¥202,104

Changes during the period:
Cash dividends ���������������������������������������������������������������������

(4,435)(4,435)

Net income attributable to owners of parent ���������������������

14,485

14,485

Repurchase of treasury stock �����������������������������������������������
Disposal of treasury stock ���������������������������������������������������

99(8,000)(8,000)442

541

Retirement of treasury stock �����������������������������������������������

—Purchase of treasury stock of subsidiaries �������������������������

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

(837)

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

(837)

1,161

2,538

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

134

3,700
134

Net changes during the period except
for shareholders’ equity �����������������������������������������������������

—Total changes during the period �����������������������������������������

—

1,260

9,347

(5,019)5,588

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

¥10,000¥52,525¥186,195¥(41,028)¥207,692
Millions of yen

Year ended March 31, 2017

Balance at the end ofthe ­previous period ��������������������������

Unrealized
gain (loss)
on othersecurities¥2,350

Accumulated other comprehensive income
Total
accumulated
Revaluation
Remeasurements
otherreserveof definedcomprehensive
for landbenefit plansincome¥(7,856)¥(1,219)¥(6,724)

Subscription
rights toshares

Noncontrollinginterests

Total net
assets¥542¥621¥196,543

Changes during the period:
Cash dividends ����������������������������

(4,435)

Net income attributable toowners of parent ������������������������

14,485

Repurchase of treasury stock ������

(8,000)

Disposal of treasury stock ����������

541

Retirement of treasury stock ������

—Purchase of treasury stock ofsubsidiaries ��������������������������������

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

(837)

Increase by share exchanges ������

3,700

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

(134)

To Contents

Net changes during
the period except for­shareholders’ equity ������������������

315

Total changes during
the period ����������������������������������

315

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

¥2,666

(134)

—

568

884

35

26

946

(134)

568

749

35

26

6,400

¥(7,990)¥  (650)¥(5,974)

¥578

¥647

¥202,943

23

COMSYS Holdings Corporation Annual Report 2018

ProfileRetainedearnings

Balance at the end of the previous period ���������������������������������

¥10,000¥52,525¥186,195¥(41,028)¥207,692

Changes during the period:
Cash dividends ���������������������������������������������������������������������

(5,082)(5,082)

Net income attributable to owners of parent ���������������������

20,39020,390

Disposal of treasury stock ���������������������������������������������������

244(8,003)(8,003)700

944

Retirement of treasury stock �����������������������������������������������

—Purchase of treasury stock of subsidiaries �������������������������

104

104

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

(88)
8,009

(88)
10,317

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

(84)

18,326(84)

Net changes during the period except
for shareholders’ equity �����������������������������������������������������

—
—

8,358

15,134

3,013

26,506¥10,000¥60,883¥201,329¥(38,014)¥234,199
Millions of yen¥2,666¥(7,990)¥(650)¥(5,974)

Subscription
rights toshares

Noncontrollinginterests

Total net
assets¥578¥  647¥202,943

Topics /Corporate
Governance

Balance at the end ofthe ­previous period ��������������������������

Accumulated other comprehensive income
Total
accumulated
Revaluation
Remeasurements
otherreserveof definedcomprehensive
for landbenefit plansincome

Review ofOperations
and Outlook

Total changes during the period �����������������������������������������
Balance at the end of the period �����������������������������������������������

Year ended March 31, 2018

Business at a
GlanceIncrease by share exchanges �����������������������������������������������

Unrealized
gain (loss)
on othersecurities

Five Integrated
Business Groups

Repurchase of treasury stock �����������������������������������������������

Business Integration withThree Telecommunications
Construction Companies

Additional
paid-in
capitalPresident’s
MessageYear ended March 31, 2018

CommonstockMillions of yen
Shareholders’ equity
TreasuryTotalstock,
shareholders’at costequityChanges during the period:(8,003)

Disposal of treasury stock ����������

944

Retirement of treasury stock ������

—Purchase of treasury stock ofsubsidiaries ��������������������������������

104
(88)

Increase by share exchanges ������

18,326

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

(84)

1,129

84

681

1,895

(65)

486

2,317

Total changes during
the period ����������������������������������

1,129

84

681

1,895

(65)

486

28,823

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

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

To Contents

Net changes during
the period except for­shareholders’ equity ������������������

Information

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

Financial
Statements

20,390

Repurchase of treasury stock ������

Corporate Social
Responsibility(CSR)(5,082)

Net income attributable toowners of parent ������������������������

Financial
Statements

Cash dividends ����������������������������

24

COMSYS Holdings Corporation Annual Report 2018

Consolidated Statements of Cash FlowsCOMSYS Holdings Corporation and Consolidated Subsidiaries
Years ended March 31, 2017 and 2018

Cash flows from operating activities:
Income before income taxes and other adjustments to net income ���������������������������������������������
Depreciation and amortization ���������������������������������������������������������������������������������������������������������
Loss on impairment of fixed assets ���������������������������������������������������������������������������������������������������
Amortization of goodwill �������������������������������������������������������������������������������������������������������������������
Decrease in allowance for doubtful receivables �����������������������������������������������������������������������������
Increase in net defined benefit liability ���������������������������������������������������������������������������������������������
Interest and dividends received �������������������������������������������������������������������������������������������������������
Interest expenses �������������������������������������������������������������������������������������������������������������������������������
Increase in receivables—trade ����������������������������������������������������������������������������������������������������������
Increase in inventories �����������������������������������������������������������������������������������������������������������������������
Increase in payables—trade �������������������������������������������������������������������������������������������������������������
Gain on sale of investment securities �����������������������������������������������������������������������������������������������
(Increase) decrease in other assets ���������������������������������������������������������������������������������������������������
Increase in other liabilities �����������������������������������������������������������������������������������������������������������������
Other, net �������������������������������������������������������������������������������������������������������������������������������������������

To Contents

Cash and cash equivalents received on interest and dividend income �����������������������������������������Cash and cash equivalents paid for interest expenses �������������������������������������������������������������������Cash and cash equivalents paid for income taxes ���������������������������������������������������������������������������
Net cash provided by operating activities ���������������������������������������������������������������������������������������Cash flows from investing activities:(Decrease) increase in time deposits, net �����������������������������������������������������������������������������������������
Payment for purchases of investment securities �����������������������������������������������������������������������������
Proceeds from sale of investment securities �����������������������������������������������������������������������������������
Purchase of investments in subsidiaries���������������������������������������������������������������������������������������������
Acquisitions of property and equipment ���������������������������������������������������������������������������������������������
Acquisitions of intangible fixed assets ���������������������������������������������������������������������������������������������
Proceeds from sale of property and equipment �����������������������������������������������������������������������������
Payments of loans receivable �����������������������������������������������������������������������������������������������������������
Collection of loans receivable �����������������������������������������������������������������������������������������������������������
Purchase of insurance funds �������������������������������������������������������������������������������������������������������������
Proceeds from cancellation of insurance funds �������������������������������������������������������������������������������
Other, net �������������������������������������������������������������������������������������������������������������������������������������������
Net cash used in investing activities �������������������������������������������������������������������������������������������������Cash flows from financing activities:
Decrease in short-term borrowings, net �������������������������������������������������������������������������������������������
Repayment of long-term debt �����������������������������������������������������������������������������������������������������������
Acquisitions of treasury stock �����������������������������������������������������������������������������������������������������������
Proceeds from sale of treasury stock �����������������������������������������������������������������������������������������������
Purchase of treasury stocks of subsidiaries ���������������������������������������������������������������������������������������Cash dividends paid ���������������������������������������������������������������������������������������������������������������������������Cash dividends paid to non-controlling interests ���������������������������������������������������������������������������
Repayment of financial lease obligations �����������������������������������������������������������������������������������������
Net cash used in financing activities �������������������������������������������������������������������������������������������������
Effect of exchange rate changes on cash and cash equivalents �������������������������������������������������
Net (decrease) increase in cash and cash equivalents �������������������������������������������������������������������Cash and cash equivalents at beginning of year �����������������������������������������������������������������������������
Increase in cash and cash equivalents resulting from change of scope of consolidation �������
Increase in cash and cash equivalents resulting from merger �����������������������������������������������������������������
Increase in cash and cash equivalents resulting from share exchange ���������������������������������������Cash and cash equivalents at end of year ���������������������������������������������������������������������������������������

2017

Millions of yen
2018¥ 22,807
5,723
391
3,017
(453)
24
(195)
7
(7,694)(4,257)
801
(161)
(282)
811
168
20,709194(7)(8,351)
12,545¥ 30,861
5,886
494
888
(1,436)36(241)
7(2,510)(4,717)
535
(0)
1,106
3,137
1,085
35,114241(7)(6,516)
28,831

30
(151)
242
(241)
(8,864)(1,171)
101
(38)
151
(96)
258
(160)
(9,940)

(94)
(155)
56
—
(13,139)(1,026)
26
(200)
718
(333)
435
(184)
(13,896)56(9)(8,022)329—(4,435)(2)(94)(12,178)(0)(9,573)28,818282
961,255¥ 20,87930(6)(8,019)668(3)(5,082)(2)(82)(12,499)
5
2,441
20,879316—
5,319¥ 28,957

25

COMSYS Holdings Corporation Annual Report 2018

ProfilePresident’s
Message

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

Orders Received / Net Sales
Business Integration withThree Telecommunications
Construction Companies(Millions of yen)

450,000
320,461 321,185

300,000

284,789 293,086 294,365

315,480

335,632
297,769 295,851

327,981 331,341 336,973 328,631 331,986 320,654

316,092402,229

370,198

380,024400,000 400,000

334,163

Five Integrated
Business Groups

150,000

009■ Orders Received

10

11

12

13

14

15

16

17

18

19

(Forecast)■ Net Sales

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

(%)

40,00016

30,00027,57015,61010,00012,540

4.9%

0

4.3%

09

10
■

8.3%

7.1%

8.4%

7.4%

7.5%

8

8.0%

8.0%

4

4.3%

3.7%

11

12

13

14

15

16

17

18

0

19

(Forecast)

Operating Income Ratio (Right Scale)

Ordinary Income / Net Income Attributable to Owners of Parent

Topics /Corporate
Governance■ Operating Income (Left Scale)

12,592

11,78512

25,036

Review ofOperations
and Outlook

23,84922,54720,00032,00030,347

27,674(Millions of yen)

40,00024,223

22,91420,00013,113

10

12,140
9,543

12,96911

13,284

15,42021,00014,485

7,173

12

13

14

15

16

17

■ Net Income Attributable to Owners of Parent

18

19(Forecast)Financial
Statements

09

7,097

16,767

16,389Financial
Statements0■ Ordinary Income

10,062

25,341
20,39017,14410,00032,20030,70628,121

Corporate Social
Responsibility(CSR)

28,07830,000

Segmental Orders Received / Net Sales

500
400

331.9 320.6

68.9 55.4
55.1 53.7
33.7 35.6

64.4 60.0
52.2 50.7
26.9 27.1

100

192.9 193.8

179.0 183.6

14

15

300

0

Segmental Orders Received (Left) Net Sales (Right)■■ NTT Engineering Business ■■ NCC Engineering Business

370.1

402.2
334.1

118.0

380.0

400.0 400.0

67.1
55.3
55.0
28.4
27.4

99.2

122.5 122.0

60.4 59.0
39.2 35.7

64.0 60.0
38.0 35.0

188.4 182.5

203.5 184.5

184.5 185.9

175.5 183.0

16

17

18

■■ IT Solutions Business

82.8■■ Social System-Related Business

19(Forecast)

To Contents

336.9 328.6

200

327.9 331.3
43.0 40.3
52.8 52.4
39.1 44.7

Information(Billions of yen)

26

COMSYS Holdings Corporation Annual Report 2018

Total Assets(Millions of yen)

400,000
328,192

300,000
220,651

211,809

09

10

237,436

228,135

240,602250,561

11

12

13

14

264,019

266,06615

16284,367

200,000
100,000
0

17

18

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

(%)

90

300,000
231,767

200,000
151,775

100,000

151,768

71.2%
68.4%

0
■ Net Assets (Left Scale)161,76809■

164,574

173,411

179,414

71.7%

71.6%

71.1%

12

13

14

194,038

196,543

73.0%

73.4%

202,943

70.9%

70.1%

17

18

67.7%

10

11

15

16

80

Shareholders’ Equity Ratio (Right Scale)

Return on Equity (ROE) / Return on Assets (ROA)
(%)
9.4%

10
8

6.7%

6
4.5%

0
Return on Equity (ROE)

4.4%

09
■

7.3%

6.7%
5.7%

6.5%

6.7%
5.8%

5.3%

4.2%
3.3%

2

■

7.9%

6.1%
4.7%

4

9.4%

9.0%

7.9%

10

3.1%

11

12

13

14

1.33

1.30

1.31

1.32

12

13

14

15

16

17

18

1.24

1.21

1.18

1.16

15

16

17

18

Return on Assets (ROA)

Total Asset Turnover(Times)

2.0
1.5

1.46

1.38

To Contents

1.0
0.5
0

09

10

11

70

60

27

COMSYS Holdings Corporation Annual Report 2018

ProfilePresident’s
Message

Dividends per Share / Acquisitions of Treasury Stock / Consolidated Payout Ratio(Billions of yen)

80

10
36.2%

60
26.5%

40

0

36.0%

5.0

09

20.00

10

3.0

20.00

11

3.0

21.0%

18.4%

20.00

12

■ Interim Dividend (Left Scale) ■ Year-End Dividend (Left Scale)

60.00
32.7%

50.00

25.6%

5.0
18.7%

20.00

20.00

30.8%

27.1%

5.0

8.0

8.0

8.0

7.5

13

35.00

30.00

25.00

5.0

28.0%

40.00

8
6
4

Five Integrated
Business Groups

20

8.0

Business Integration withThree Telecommunications
Construction Companies(Yen)

2

14

15■ Acquisitions of Treasury Stock (Right Scale)

■

16

17

18

19

0

(Forecast)

Consolidated Payout Ratio

Business at a
GlanceShareholder Return Ratio
(%)

120

106.2%
77.7%

85.6%

77.2%
66.9%

67.5%

66.2%

Review ofOperations
and Outlook

76.0%

80

56.6%

48.7%
58.3%

40

0

10

11

12

13

14

15

16

17

18

19

(Forecast)

Topics /Corporate
Governance09

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

250

2,500

150
100

75.60

50

10

142.72136.75183.28

2,000
1,500

129.96106.82

1,000
55.50

11

500

12

13

14

15

16

17

18

19

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

Financial
Statements

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

136.08

1,848.33

1,764.13

1,682.70

Financial
Statements

0

73.92

55.18

1,401.05

1,289.57

1,238.66

1,199.29

1,151.81

1,514.73

Corporate Social
Responsibility
(CSR)

200

2,008.42
178.64

Number of Employees

15,000
11,581

10,000

8,407

09

10

9,758

9,798

9,625

9,931

9,994

10,224

11

12

13

14

15

16

17

5,000

0

18

To Contents

8,203

10,012

Information(Persons)

28

COMSYS Holdings Corporation Annual Report 2018

Information

Investor Information■ Fiscal Year-End:
March 31, 2018
■ Annual Shareholders’ Meeting:June 26, 2018
■ Common Stock:
Authorized: 580,000,000 shares
Issued: 141,000,000 shares■ Number of Shareholders:
9,442■ Date of Listing:
September 2003
■ Stock Exchange Listing:First Section of the Tokyo Stock Exchange(Securities code: 1721)■ Major Shareholders:
As of March 31, 2018
Shares held Percentage(Thousands) of total (%)

Shareholders

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

22,899

16.24

Japan Trustee Services Bank, Ltd. (Trust Account)

13,074

9.27

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

2,933

2.08

Nippon Life Insurance Company

2,590

1.83

Japan Trustee Services Bank, Ltd.
(Sumitomo Mitsui Trust Bank, Limited Retrust
Account, Sumitomo Electric Industries, Ltd.
Employee Pension Trust Account)

1,607

1.13

Meiji Yasuda Life Insurance Company

1,554

1.10

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

1,505

1.06

NEC Corporation

1,408

0.99

JP MORGAN CHASE BANK 385151

1,402

0.99

BNYM FOR GOLDMAN SACHS JAPAN

1,262

0.89

■ Transfer Agent:
Mitsubishi UFJ Trust and Banking Corporation
Securities Department
1-1, Nikko-cho, Fuchu-shi, Tokyo 183-0044, Japan■ Auditor:
GYOSEI & CO.

■ Composition of Shareholders:
As of March 31, 2018

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

2.1%

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

43.7%■ Domestic Companies

5.2%■ Foreign Companies
and Individuals

18.5%■ Individuals

11.8%■ Treasury Stock

18.7%■ Stock Price Range / Monthly Trading Volume

To Contents(Yen)(Thousands of shares)

3,600

60,0003,000

50,0002,400

40,0001,800

30,0001,200

20,000600

10,00000

16/4 16/5 16/6 16/7 16/8 16/9 16/10 16/11 16/12 17/1 17/2 17/3 17/4 17/5 17/6 17/7 17/8 17/9 17/10 17/11 17/12 18/1 18/2 18/3 (Month)■ ■ Stock Price (Left Scale)   ■ Monthly Trading Volume (Right Scale)29

COMSYS Holdings Corporation Annual Report 2018

ProfileCorporate Data

President’s
Message

COMSYS Holdings Information
Corporate History

As of March 31, 2018

Name:

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

Management integration of TSUKEN Corporation.

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

URL:

April 2009

Date of Establishment:

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

September 29, 2003
Paid-In Capital:¥10 billion
Number of Employees:

Directors and Audit and Supervisory Committee Members
As of June 26, 2018

COMSYS Holdings Corporation converted COMSYS Shared
Services Corporation, previously a consolidated subsidiary of
Nippon COMSYS Corporation, into a wholly owned subsidiary inorder to clarify its role as a common provider of business process
outsourcing services for the COMSYS Group.

October 2005

April 2005

Shigemi Sakamoto

SANWA ELEC Co., Ltd. was renamed SANWA COMSYSEngineering Corporation.

Akihiko Aoyama

September 2003

(Chairman and Representative Director of Nippon COMSYS Corporation)(President and Representative Director of TOSYS Corporation)(President and Representative Director of TSUKEN Corporation)(President and Representative Director of
SANWA COMSYS Engineering Corporation)(President and Representative Director of
COMSYS JOHO SYSTEM Corporation)

Director(Full Time Audit and Supervisory Committee Member)
Tsuyoshi Nishiyama): Concurrent positions held

Nippon COMSYS Corporation was selected as one of the 225
components of the Nikkei Stock Average.

December 2001
Nippon COMSYS Corporation celebrated its 50th founding
anniversary.

July 1990
The Company was renamed Nippon COMSYS Corporation.

To Contents(

March 2002

Information

Outside Directors(Audit and Supervisory Committee Members)
Kenichi Narumiya
Masahiko Miyashita
Takaharu Saegusa
Kazuyoshi Onohara

Nippon COMSYS Corporation delisted its shares in line with theestablishment of the holding company.

Information

Director(Audit and Supervisory Committee Member)
Koichiro Kamiwaki

September 2003

Financial
Statements

Hitoshi Kumagai
Kenichi Sato
Hidehiko Ozaki
Norio Suda

COMSYS Holdings Corporation listed its shares on the firstsections of the Tokyo Stock Exchange and Osaka Securities
Exchange.

Corporate Social
Responsibility(CSR)

Yoshihisa Omura

Directors
Noriaki Ito

Topics /Corporate
Governance

Akio Ogawa

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

(President and Representative Director of Nippon COMSYS Corporation)

Review ofOperations
and Outlook

President and Representative Director
Takashi Kagaya

April 2007

Business at a
Glance11,581 (Consolidated)

Five Integrated
Business Groups

http://www.comsys-hd.co.jp/english/

Business Integration withThree Telecommunications
Construction Companies

Head Office:October 2010

30

COMSYS Holdings Corporation Annual Report 2018

Organization Chart
As of June 26, 2018

Nomination and Remuneration
Advisory Committee

Board of Directors
Audit and Supervisory Committee
President

Senior Management Committee

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

Corporate
Planning
Department

Business
Expansion
Strategy OfficeFinance andAccounting
Department

IR
Department

GeneralAffairs
Department• Corporate Planning Unit
• Corporate Strategy Unit
• Strategy Planning Unit
• Corporate Information Unit

Personnel
Department• General Affairs Unit
• Legal Unit
• PR Unit• CSR OfficeInternal Control
and Audit
Department• Internal Control Office• Internal Audit Office

Wakkanai
Asahikawa<Branch in foreign countries>
Jakarta (Indonesia)

Kitami
Kushiro

HOKKAIDO

Otaru
Muroran
Hakodate

ObihiroTomakomai

TohokuSendai

Kanto NakaNIIGATA

Niigata

NAGANO

Hokuriku

Tochigi
TOKYO

Saku/Chushin/Nanshin

Chiba
Kanto Minami
Kanagawa

Chugoku
KyushuShizuoka
Kansai
Nishi Nippon
ShikokuTokaiHead Office/COMSYS Holdings Corporation
Head Office/Nippon COMSYS Corporation
Head Office/SANWA COMSYS Engineering Corporation

To Contents

Head Office/TOSYS Corporation
Head Office/TSUKEN Corporation
Head Office/COMSYS JOHO SYSTEM Corporation
Branch/Nippon COMSYS Corporation

Okinawa

Branch/SANWA COMSYS Engineering Corporation
Branch/TOSYS Corporation
Branch/TSUKEN Corporation
Branch/COMSYS JOHO SYSTEM Corporation