Presentation of Performance
Fiscal Year Ended March 31, 2020

May 19, 2020

Contents
I． Overview of Performance for the Fiscal Year Ended March 31, 2020・・・・・・・・・
1. Highlights of Performance・・・・・・・・・
2. Details of Orders Received by Segment・・・・・・・・・
3. Details of Net Sales by Segment・・・・・・・・・
4. Details of Operating Profit
・・・・・・・・・
5. Status of Contract Backlogs．
II Business Forecasts for the Fiscal Year Ending March 31, 2021
1. Business Forecasts for the Fiscal Year Ending March 31, 2021 ・・・・・・・・・・・・・・・・・・
2. Order Forecasts by Segment・・・・・・・・・
3. Sales Forecasts by Segment・・・・・・・・・
4. Forecasts for NTT Fixed-Line Related Business・・・・・・・・・
5. Forecasts for NTT Mobile Business・・・・・・・・・
6. Forecasts for NCC Engineering Business・・・・・・・・・
7. Forecasts for IT Solutions Business・・・・・・・・・
8. Forecasts for Social System-Related BusinessIII． Medium-Term Vision
・・・・・・・・・
1. Basic Strategy of COMSYS Group・・・・・・・・・
2. Progress of COMSYS VISION NEXT STAGE 2023
・・・・・・・・・
3. Generating Consolidation Synergies
・・・・・・・・・
4. Market Trends for NTT Fixed-Line Related Business・・・・・・・・・
5. 5G Development Plans of Telecommunications Carriers
6. Business Strategy for Telecommunications Carrier Business ・・・・・・・・・・・・・・・・・・
7. Market Trends in IT Solutions Business・・・・・・・・・
8. Growth Strategy for IT Solutions Business・・・・・・・・・
9. Market Trends in Social System-Related Business・・・・・・・・・
10. Growth Strategy for Social System-Related Business
IV． Shareholder Returns Policy
1. Shareholder Returns Policy
・・・・・・・・・(Dividends and Acquisition of Treasury Shares)

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I. Overview of Performancefor the Fiscal Year Ended March 31, 2020

I-1. Highlights of Performance
Orders received, net sales, and operating profit
all exceeded those of the previous fiscal year and targets• The organic growth at existing Group companies in addition to the effects of the consolidation
boosted business performance.
• Operating profit at existing Group companies was slightly lower than the target due to a change in the sales mix.
• The operating margin fell due to a change in the sales mix and the impact of the consolidation.

(Unit: ¥100 million)

FY March 2020
Performance

Comparisons with
the Previous Term

Comparisonswith Target(Existing Group)(Existing Group)(Existing Group)

Orders Received

5,907

+851

+537

Net Sales

5,608

+790

+208

Operating Profit

389

+36

+9

Operating Margin

6.9%-0.4 p.p.

-0.1 p.p.

(4,584)(4,318)(330)(7.7%)(+455)(+174)(+4)(-0.2 p.p.)

Notes 1. There was a consolidation of three companies, NDS Co., Ltd.; SYSKEN Corporation; and Hokuriku Denwa Kouji Co., Ltd., on October 1, 2018.
2. p.p. = percentage points(+394)

(+33)

(-4)

(-0.1 p.p.)4

I-2. Details of Orders Received by Segment
Orders received increased due to the effects of the consolidationand strong acquisitions of orders in the growth segments• NTT Engineering business: Orders rose considerably year on year and significantly surpassed the target due tostrong performance in the access business and mobile business in addition to the effects of the consolidation.
• NCC Engineering business: Orders fell year on year and were lower than the target due to fall in orders from au.
• IT Solutions business: Orders increased substantially compared to the previous fiscal year and significantly surpassed
the target due to a favorable trend in winning large projects and the effects of the consolidation.
• Social System-Related business: Orders climbed considerably year on year and significantly surpassed the target
due to acquisition of a large-scale solar power project and the effects of the consolidation.

(Unit: ¥100 million)

FY March 2020
Performance

Comparisons with
the Previous Term

Comparisonswith Target

NTT Engineering

2,554

+325

+229

NCC Engineering

434

-31

-45

IT Solutions

1,008

+199

+138

Social SystemRelated and Other

1,909

+358

+214
5

I-3. Details of Net Sales by Segment
Net sales rose year on year in all segments as a result of the consolidation• NTT Engineering business: Sales rose significantly over the previous fiscal year and surpassed the target due to the effectsof the consolidation, although sales in the mobile business fell due to delays in the completion of construction work.
• NCC Engineering business: Sales fell short of the target but increased from the previous fiscal year because the effectsof the consolidation offset fall in sales to au.
• IT Solutions business: Sales rose considerably year on year and significantly surpassed the target due to the completionof large-scale projects in the public sector in addition to the effects of the consolidation.
• Social System-Related business: Sales rose considerably year on year and also surpassed the target due to thecompletion of large-scale data center projects and gas facility construction in addition to the effects of the consolidation.

(Unit: ¥100 million)

FY March 2020
Performance

Comparisons with
the Previous Term

Comparisonswith Target

NTT Engineering

2,504

+236

+39

NCC Engineering

437

+6

-7

IT Solutions

981

+230

+156

1,685

+317

+20

Social SystemRelated and Other6I-４. Details of Operating Profit
Operating profit rose due to strong sales in the growth businesses
in addition to the consolidation.
• Operating profit increased significantly year on year due to the effects of the consolidation.
• At existing Group companies, the effect of higher sales in the growth businesses offset the impactof fall in mobile business sales and contributed to profit growth.
• Strong sales increases in the growth businesses also drove an expansion in profit surpassing the target.
Effect of
the consolidation

Five existing
consolidated subsidiaries

Increase in
SG&A
expenses

Decrease in
Operatingconsolidation
profit of three
expensesconsolidated
companies-1+4

Change insales mix

-5

Net sales
growth(Unit: ¥100 million)

+16

+27
Net sales
growth+13352
FY March 2019
Performance

Change insales mix

-9

Decrease in
SG&A
expenses

389

+1

380

Radicalreduction in
costs

+36

+9
FY March 2020
Performance

FY March 2020
Target7

I-5. Status of Contract Backlogs
Total contract backlog increased significantly as a resultof the robust orders received in the growth segments• NTT Engineering business: The contract backlog increased from the previous fiscal year with delays
in mobile business construction, while orders received remained robust.
• NCC Engineering business: The contract backlog declined year on year due to the fall in orders from au,
despite acquisition of new orders from Rakuten Mobile.
• IT Solutions business: The contract backlog increased compared to the precious fiscal year due to continued
robust orders received, including acquisition of large-scale projects in the public sector.
• Social System-Related business: The contract backlog climbed substantially year on year due to acquisitionof a large-scale solar power project.
+298
+235
+222
+360

1,013
280
133
39
558

FY March 2017
Beginning of Term

437

1,831

1,595

1,373

2,129 (Unit: ¥100 million)

1,031

SocialSystem

236

IT

807
625

136
50

150
85

209
119

115

NCC

749

734

695

745

NTT

FY March 2018
Beginning of Term

FY March 2019
Beginning of Term

FY March 2020
Beginning of Term

FY March 2021
Beginning of Term

8

II. Business Forecasts
for the Fiscal Year Ending March 31, 2021
• The COMSYS Group will continue to meet the demands of customers by maintaining its business activities
as a company that constructs key telecommunications and social infrastructure, while working on
measures to prevent COVID-19 in line with government policies and giving full attention to the health of
employees, including those at partner companies, to prevent the spread of the disease.
• Although some of the impact of COVID-19, such as the postponement of the Olympic and Paralympic
Games, is already reflected in the business forecasts here, the Company will disclose any revisions to its
business forecasts as is appropriate in an event of significant changes to the expected conditions, suchas reduction of IT investments at client companies and delays in construction and materials due to an
expansion of the impact in the future.

II-1. Business Forecasts for the Fiscal Year Ending March 31, 2021
Expecting business results in line with the previous fiscal year,
despite uncertain business environment• Expecting decrease in orders received year on year as a result of the reaction to acquisition of large-scale
projects and front-loaded orders in the previous fiscal year
• Expecting net sales in line with the previous fiscal year as fall in sales in the NTT fixed-line related businessis expected to be offset by increased orders in other business segments• Expecting decrease in operating profit due to a change in the sales mix with the telecommunications carrierbusiness and the growth businesses

FY March 2020
Performance

FY March 2021
Forecasts

Comparisons withFY March 2020

(Unit: ¥100 million)

Orders Received

5,907

5,650

-257

Net Sales

5,608

5,600

-8

Operating Profit

389

380

-9

Operating Margin

6.9%

6.8%

-0.1 p.p.

Note. p.p. = percentage points

10II-2. Order Forecasts by Segment
Expecting decrease due to reaction to acquisition of large-scale projects
and front-loaded orders in the previous fiscal year
• NTT Engineering business: Expecting decrease in orders received from the past fiscal year due to decrease in
NTT-group’s capex and reaction to front-loaded orders in the previous fiscal year
• NCC Engineering business: Aim for increase in orders received year on year by offsetting fall in orders received
from KDDI with robust orders received from SoftBank and Rakuten Mobile• IT Solutions business: Aim for increase in orders received year on year by promoting virtual company system
to further enhance capabilities of gaining orders• Social System-Related business: Expecting decrease in orders received compared to the previous fiscal year
due to reaction in large-scale solar power project orders in previous fiscal year

FY March 2020
Performance

FY March 2021
Forecasts

Comparisons withFY March 2020

(Unit: ¥100 million)

NTT Engineering

2,554

2,290

-264

NCC Engineering

434

510

+75

IT Solutions

1,008

1,030

+21

Social SystemRelated and Other

1,909

1,820

-89
11

II-3. Sales Forecasts by Segment
Expecting net sales to be maintained from the previous fiscal year
as the sales decrease in NTT-AC will be offset by other businesses• NTT Engineering business: Expecting decrease in sales due to a forecast of significant fall in sales in the accessbusiness, despite expected recovery of sales in the mobile business• NCC Engineering business: Expecting sales increase as robust sales to SoftBank and Rakuten Mobile
compensate for fall in sales to KDDI• IT Solutions business/Social System-Related business: Further expand top line by completing massive contract
backlogs despite an expected slowdown in growth due to the impact of COVID-19(Unit: ¥100 million)

FY March 2020
Performance

FY March 2021
Forecasts

Comparisons withFY March 2020

NTT Engineering

2,504

2,410

-94

NCC Engineering

437

480

+42

IT Solutions

981

1,010

+28

1,685

1,700

+14

Social SystemRelated and Other12

II-4. Forecasts for NTT Fixed-Line Related Business
Aim to further reduce costs and improve productivity amid contracting market• Expecting significant decrease in sales in the access business due to reduction in the capex amount at NTT Eastand NTT West in addition to the reaction to the robust orders received in the previous fiscal year
• Aim to reduce costs and improve productivity by promoting a reform from individual Group company
optimization to Overall COMSYS Group-wide optimization• Strengthen resources for acquisition of maintenance outsourcing projects and acquisition of future electric power projects
Sales of NTT Engineering Business–AC and NW(Simple total of eight companies*)

1,560
223

1,849
241

(Unit: ¥100 million)

1,725
230

NW
AC

1,336

FY March 2019
Results

1,608

FY March 2020
Results

1,495

FY March 2021
Forecasts

5,225

4,800

Reduce costs through structural reform• Eliminate and integrate duplicated functions
within the same areas• Centralize sales and back office functions nationwide
Improve productivity through IT platform integration• Operational reform• DX promotion
Obtain Business Opportunities Aligned with
Changes in Business Environment

NTT East and NTT West capex**

5,410

Promote Reform from Individual Group Company
Optimization to Overall Optimization(Unit: ¥100 million)

FY March 2019 FY March 2020 FY March 2021
Targets

Expand maintenance business• Acquire design/construction/maintenance projects in
an integrated manner
Strengthen electric power business• Strengthen resources in conjunction with expansion ofdata center market• Monitor NTT’s Smart Energy Business* Simple total of eight companies is the sum of net sales of the following eight companies: Nippon COMSYS Corporation; SANWA COMSYS Engineering Corporation; TOSYS Corporation; TSUKEN Corporation; NDS Co., Ltd.;SYSKEN Corporation; Hokuriku Denwa Kouji Co., Ltd.; and COMSYS JOHO SYSTEM Corporation. The amount for NDS Co., Ltd.; SYSKEN Corporation; and Hokuriku Denwa Kouji Co., Ltd., is included in the sum
after the consolidation of the three companies in the second half of the fiscal year ended March 31, 2019.
** Prepared by COMSYS HOLDINGS Corporation based on NTT’s supplementary materials for FY 2019 financial results briefing, and applications for approval of FY 2020 business plan by NTT East and NTT West13

II-5. Forecasts for NTT Mobile BusinessStart of construction aimed at expanding 5G services• NTT Docomo developing full-scale roll-out of 5G base stations, but details remain unclear due to COVID-19 problem• 4G capex expected to fall due to need for process compression and simultaneous construction with 5G,
despite elimination of material shortages• Aim for swift Group-wide roll-out of IT systems in order to centralize back office operations nationwide
and improve productivity
NTT DOCOMO 5G Base Station
Deployment Plan*
20,000base stations

Sales of NTT Engineering business–MB(Simple total of eight companies) (Unit: ¥100 million)

681

635

612

10,000base stations
150 locations 500
base stations
FY March 2020
Results

FY March 2019
Results

FY March 2021
Forecasts

Group-wide Roll Out of Mobile IT Systems

NTT DOCOMO capex*
Capex forecast to slow due to impact of COVID-19

5,937

5,728

(Unit: ¥100 million)

5G （520）
infrastructure

Communications
business

5,627

5,320

Not disclosed
due to impact
of COVID-19

Other
FY March 2019

FY March 2020

March 31, 2022

March 31, 2020 June 30, 2021

FY March 2021
Targets* NTT DOCOMO’s materials for FY 2019 financial results briefing

Aim to commence in-house operation in fiscal 2021
Customers

Mobile Systems

COMSYS Group

Customers(Digital contract system)

Contract management
systemCore in-housesystemContract/
construction
information

Deliverables,
etc.

Construction system
Negotiation andconsulting staff ss on
re atio g rmr
P fo
in

Verification
with photos

Construction staff Safety and quality staff, etc.

Mobile Back OfficeWork statusverification photo
Mobile terminal
for construction

Construction team leader

Construction Site for Mobile Facilities14II-6. Forecasts for NCC Business
SoftBank and Rakuten Mobile business will remain robust• KDDI business expected to contract due to continuation of au’s limited investment for prioritized 4G facilities anddecline in construction of 700Mhz TV reception countermeasures• For SoftBank business, aim to expand orders received due to robust upgrading projects of 4G network for 5G use• For Rakuten Mobile business, aim to expand market share of base station construction projects in nationwide 4G rollout phase• Aim for further acquisition of orders in 5G-related construction from au, SoftBank, and Rakuten
Status of KDDI

Consolidated Sales of NCC Engineering Business

Focus on 5G rollout althoughcapex virtually flattens(Unit: ¥100 million)(Unit: ¥100 million)

480

437

430

6,150

6,100

FY March 2020

FY March 2021
Targets

6,017
Capex

FY March 2020
Results

FY March 2019
Results

April 2020

FY March 2019

FY March 2021
Forecasts

Source: Prepared by COMSYS Holdings Corporation based on KDDI’s materials
for FY ended March 31, 2020 financial results briefing

Status of Rakuten Mobile

Status of SoftBank

Simultaneous development of
nationwide 4G rollout and 5G launch

Robust investment aimed atmaintaining and improving quality[Forecast number of Rakuten’s Mobile 4G base stations]

March 31, 2020
4,738 base stations

N ationw id

e b asApril 2020

September 2020

4G service launch

Scheduled 5G
service launch

ion roe statCumulative number of smartphone contracts(10,000 contracts)

llou tCommunications traffic

doubled in 2 years(Busies hours)

June 2021
Population coverage rate 70%
Approx. 30,000 base stations(COMSYS Holdings estimate)

March 2021
Nationwide 5G
rollout

Source: Prepared by COMSYS Holdings Corporation based on materials for FY 2020 Q1 financial results briefing by Rakuten, Inc. and press releases

FY2016FY2017FY2018FY2019FY2017FY2018FY2019Source: SoftBank Corp. results for FY ended March 31, 2020 financial results briefing15II-7. Forecasts for IT Solutions Business
Promote virtual company system and aim to expand sales and profit• Maximize orders received and sales for greater profitability by promoting the virtual company system• Aim to improve profit margin through optimal use of Group resources• Tap into new business opportunities, such as corporate DX, AI/IoT, and local 5G, to strengthen growth base

Consolidated Sales of IT Solutions Business

+2.9％
981

Expand Top Line Further(Unit: ¥100 million)

1,010• Expand alliance projects• Strengthen sales/construction collaboration
within IT virtual company

750

271

270

(GIGA school projects,
software development projects, etc.)• Develop new businesses

Softwaredevelopment

225(Corporate DX, AI/IoT, local 5G, etc.)
Promote Profit Expansion Measures

659

Solutions

685

482

• Optimize allocation of construction resources• Promote nearshore development• Strengthen maintenance platform collaborationand centralize operations

Maintenance43
FY March 2019

51

55

FY March 2020
Results

FY March 2021
Forecasts16

II-8. Forecasts for Social System-Related Business
Promote virtual company system and aim to improve profit margin• In infrastructure and telecommunications segments, promote virtual company system and aim to expand
orders received for highly profitable projects• In renewable energy segment, aim for steady sales expansion through construction of mega-solar power projects• Strengthen growth base by expanding business areas and business domains, utilizing M&As
• Increase productivity and improve profit margin by introducing new technologies and new construction methods
Consolidated Sales of Social System-Related Business

+0.9％
1,685

(Unit: ¥100 million)

1,700

Example of Expansion into New Domain• Local-production, local-consumption type project forhydrogen production and use(A project proposal in response to NEDO public call)

1,367
909

930
Electricity
storage

Infrastructure 753
and Other

293

Renewable
Energy303

Electric
Facilities

311

FY March 2019

EMS

483
FY March 2020
Results

390
380
FY March 2021
Forecasts

Captiveconsumption
Hydrogenproduction(P2G)

Improve Profitability by utilizing IT• Provide support for remote construction site utilizing
wearable cameras• Automate simple operations utilizing RPA• Make 3D surveys using drones, equip heavymachinery with GPS

17

III. Medium-Term Vision

III-1. Basic Strategy of COMSYS Group
Smart Infrastructure for the Future
Build infrastructure for smart society to create the future
Social issues: global warming, increasingly severe natural disasters, restricted national and local
finances, aging of social infrastructure, advent of super-aging society
Intensifying competition due to new market participants
Shift to non-telecommunications business

Intensifying competition
Slowing labor productivity

Telecommunications carriers

Corporations, government agencies,
local governments

MaintenanceOutsource

Fully migrate
fixed network
to IP

Upgradedisastermeasures andnetwork
reliability

Establish 5G
networkInnovate
industrythrough local
5G

Promote cloud
migration andDX

WorkstylereformExpandintroduction ofrenewableenergyExpand PFI
andconcession
business

Respond to social issues and business opportunities with one stop at “One COMSYS”
Fixed-line
telecommunications
business

Nationwide network ofan array of engineers

MobileTelecommunications
business

IT solutions business

Extensive businessdomains

Trusting relationships
with customers andpartners

COMSYS Core Competencies

Social system-related
business

Safety and quality
secured intelecommunications
carrier standards

19III-2. Progress of COMSYS VISION NEXT STAGE 2023
Aim for growth to achieve corporate vision despite uncertainty in business environment
COMSYS VISION NEXT STAGE 2023
Growth slowdown forecast
in current fiscal year

Steady start in initial fiscal year
FYE March 31, 2020 results YoY

Business environment forecast
to recover in FYE March 31, 2022

FYE March 31, 2021 forecasts

Net Sales: +16.4% (+4.2%)

Decrease in telecommunications carrier capex

Operating Profit: +10.5% (+1.5%)

Expansion of the growth businesses will slow,
based on cautious investment forecasts at
customers

Figures in parentheses show growth of existing Group companies

Net Sales: At least ¥600.0 billion
Operating Profit: At least ¥50.0 billion
Total return ratio: Maintain 70% target

At least(Unit: ¥100 million)

IT
SocialSystemNet Sales

5,608

4,817

981

+2.9%

1,010

750
1,367

1,685

¥600.0 billion

5,600

+0.9%

1,700

M ain tain.
At least
at approxr+6 % /ye a ¥120.0 billion

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

M ain tain.
ta approx
r
a
e
/y
+4 %

At least¥190.0 billion

At least
50%

Telecommunications Carrier Business

CarrierBusiness Year

Operating Profit(Operating Margin)

2,699

2,942

-1.8%

2,890

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

Maintain
Net sales

At most50%

FY March 2019

FY March 2020

FY March 2021

FY March 2024

Results

Results

Forecasts

Targets352(7.3%)

389(6.9%)

380(6.8%)+¥12.0 billion

At least¥50.0 billion
(8%)

20

III-3. Generating Consolidation Synergies
Promote radical structural reform and DX to generate synergies from the consolidation
Transform Operations by Promoting DX

Provide Support for DX at Customers
Provide support for operationaltransformation

Provide support for value
creation

Strengthen and deepen customer relations

Provide support for new value
creation at customers

Improve quality and delivery times

Pursue Overall Optimization at COMSYS Group
Radical Structural Reform of Business
Operation System
Head office functions

Head office functions

Head office functions

Tokyo sales office

Tokyo sales office

Tokyo sales office

IT/Social System-Related
Business segments

IT/Social System-Related
Business segments

IT/Social System-Related
Business segments

NTT businessNTT businessNTT businessCompany A

Company B•

Company C•••• Each company has a full set of functions and duplicate sites

Implement COMSYS DX
Transform operations

Value creation

Standardize and automate operations

Enhance value provided to customers

Data-driven management

Transform business model• Each company conducts sales and wins projects individually
From Individual Company Optimization to
Overall Optimization

Consolidate sales functions and locations
Operate in integrated manner through virtual company system

Enhance Environment for COMSYS DX
Corporate transformation

Utilize IT

Transform culture, organization, andprocesses

Integrate IT platforms••

Centralize backyard operations
Operate business utilizing local brands and wages systems

Company A

Company B

Company B••

Strengthen security• Share Group-wide resources and focus on profitable projects• Local companies specialize in construction in each region21III-4. Market Trends for NTT Fixed-Line Related BusinessConversion to fiber optics, 5G rollout, maintenance outsourcing, undergrounding, etc.
expected to continue over medium to long term
NTT Group Medium-Term Management StrategyYour Value Partner 2025

NTT’s new network initiatives“IOWN”

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

2020 (FY)

2021

2022

2023

2024

Tokyo Olympic
and Paralympic Games

Start IP service
connection

Promoteconversion tofiber optics

Launch 5G/local 5G“All-Photonics Network”

2025

Osaka World Expo

2030

Economic ripple
effect ofapprox. ¥2 trillion

End
ADSL services

Start migration of
fixed-line telephoneservices to IP
End ISDN services

Completefull IPmigration

Promote migrationof AC and NW to IPTransmission medium:
Conversion from metal lines to all fiber optics
Transmission equipment:
Currently, fiber optics → electrical → fiber optics
Change to directly transmit optical signals
without conversion
Information processing:From electrical processing to photoelectric
fusion device

Promote construction of equipment related to DC, edge computing, IoT,
and enhancements of AC/NWNTT Group’s entry into local 5G market

Promote outsourcing of maintenance operations
Expand smart energy business

Sales ¥600 billion, capex ¥100 billion/year

Green power generation, VPP, advanced EV stations, backup power sources, electricity retail and wholesale

Promote undergrounding of utility poles
Plans to promote undergrounding by the Ministry of Land, Infrastructure, Transport and Tourism and Tokyo Government22

III-5. 5G Development Plans of Telecommunications Carriers
Commercial 5G services commencing with base stations to be established at rapid pace
5G base station establishment plans by each telecommunications carrier
25,000au
Over 20,000 basestations**

docomo20,000docomo20,000 basestations*

au(KDDI)
SoftBank
Rakuten M

SoftBank 11,810 base stations****Plan submitted to Ministry of Internal Affairs and Communications
brought forward by 2 years
Planning to roll out 5G at early stage by using 4G frequencies***

15,000Approx. 10,000
base stations**

10,00010,000 basestations*>> 10,000 base stations by March 31, 2021>> 50,000 base stations by March 31, 2022

Rakuten7,411 base stations ****

Main cities nationwide**(Number of base stations
estimated by COMSYS Holdings)

500 cities*

5,000(Number of base stations
estimated by COMSYS Holdings)

47 prefectures*

0
Ministry of Internal
Affairs andCommunications’
5G introduction
guidelines

Local 5G roll out(Number of base stations
estimated by COMSYS Holdings)

March 31, 2020

June 30, 2020

March 31, 2021

June 30, 2021

March 31, 2022

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

Promotion of 5G and local 5G roll out
Expansion of demonstration projects and use cases(agriculture, manufacturing, education, infrastructure monitoring, and open laboratory establishment)

Local 5G licenses to be acquired by vendors,
cable TV, NTT-COM, NTT East and NTT West, local governments, and universities*NTT Docomo’s materials for March 18, 2020 presentation of new 5G services and products**KDDI’s March 23, 2020 press release materials***SoftBank’s materials for FY ended March 2020 financial results briefing****Telecommunications Bureau, Ministry of Internal Affairs and Communications “Results of inquiry on approval to applications for authorization of establishment plans on specified base stations for spreading 5G mobile communications systems (April 2019)”

23

III-6. Business Strategy for Telecommunications Carrier Business
Aim to further reduce costs and improve productivity by utilizing IT
Business

Key measures• Standardize workflow

Telecommunications Carrier-related Business
Consolidated Net Sales

Approx.

(Unit: ¥100 million)

2,699

2,942 2,890 Maintain 2,900
sales• Centralize backyard
operations nationwide• Utilize RPA

FixedLine• Promote joint
procurement

FY2021

FY 2022Development

Operated by 5 companies

Access-related systems
Development

Operated by 4 companies

Access-related photo inspection systems
Development

Operated by 4 companies

NW-related systems
Operated by 4 companies

Development

NW-related photo inspection systems
Development

× Metal-related
× Optic fiber opening〇 Maintenance business

Operated by 4 companies

Bulk procurement
Vehicles• Standardize workflow• Integrate IT systems

MB• Centralize backyard
operations nationwide

IT tools and construction equipment, etc.

Construction systems/construction mobile
Development

Contract administration system
Development

NTT
MobileNCC

Operated by 4companies△4G〇5G• Utilize mobile engineers
within the Group〇5G〇RakutenNCC

FY Mar. 2019 FY Mar. 2020 FY Mar. 2021
Forecasts

Operated by 6 companies

FY Mar. 2024
Targets• Expand share of NCC
mobile projects throughmaximum use ofresources

6
companies

Centralize
construction
management
function andphotoinspection
function
nationwide

Consolidation of
six companies’
systems completed

NTT
Fixed-Line

FY 2023

User-related systems
Consolidation of six companies’
systems completed• Integrate IT systems

FY 2020

Utilize mobile engineers
Utilization within
NCC

Optimize use of mobile engineers for NTT/NCC

au 5G (NSA)

au 5G (SA)au withdraws from 3G

SoftBank to enhance 4G(5G support)

SoftBank to begin full-scale entry into 5G

Rakuten rolls out 4G nationwide
5G in Tokyo
metropolitan region

Rakuten to roll out 5G nationwide

24

III-7. Market Trends in IT Solutions BusinessMedium- to long-term expansion of investment in DX,
cloud migration, and smartification
Forecasts of IT Market Growth(Unit: ¥100 million)

60,000IT Infrastructure and Services Market(Unit: ¥100 million)

ICT-related Market

30,000Smart City platforms

25,000

Factory IoT

40,00020,000Sports tech

30,00015,00020,00010,00010,000

5,000

0

0

50,000

Cloud services
Data centers
Business internet service

FY2018FY2019 FY2020 FY2021 FY2022 FY2023

Digital healthcare

FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025

Figure: Cloud Service, Data Center, and Business internet service Markets

Figure: 5G-related Market Scale Forecasts (Japan)(Source: Information Technology Navigator 2020, Nomura Research Institute, Ltd.)(Source: November 27, 2019 news release by Nomura Research Institute, Ltd.)•

Cloud services market growing at annual average of 21%•

Full-scale launch of 5G will drive ICT-related markets•

Data center market growing at annual average of 6% in
conjunction with corporate DX development•

Smartification-related market growing at annual average of
10%•

Corporate network market also remains robust in
conjunction with cloud migration•

It is forecast that 5G-related services will account for
approximately 15% of above ICT-related markets in FY2025

Supplementary information: Japan ICT market situation forecast by IDC Japan (April 3, 2020) in consideration of COVID-19 effects>> If the disease is contained by around the end of June 2020, Japan ICT market (expenditure base) down 4.5% year on year>> If the disease is not contained until mid-2021, market is forecast to fall 6.3% year on year25

III-8. Growth Strategy for IT Solutions BusinessEndeavor to create excellent one and only business
Create full-layer solutions(Social infrastructure × telecommunications infrastructure × solutions)

Consolidated Sales of IT Solutions Business(Unit: ¥100 million)

Continue
approx.
+ 6%/year

981
750
SoftwareDevelopment

271

At least

1,200

1,010

Software Development

Maintenance• Expand alliances• Expand managed services• Local 5G• Develop IoT, AI, and RPA
products• GIGA schools• Expand acquisition ofoutsourcing contracts

Core Competencies

270

Solutions• Expand contracted
development projects

Nationwide construction
Maintenance capabilities

225• Acquire DX projects

One-Stop Solutions
Many highly skilled engineersand project managers

Extensive andstrong alliances

Priority measures for achieving targets
Top line

659
Solutions• Further promote sales/construction collaboration (in each area, insoftware segment)

685

482

• Promote alliances and expand/utilize partner companies• Expand business domains, including co-creation with customers(covering PoC through to commercialization of services)

Maintenance

43

51

55

FY Mar. 2019 FY Mar. 2020 FY Mar. 2021
Forecasts

FY Mar. 2024
Targets

Bottom line
• Standardize/deepen PMO activities, promote cost estimate know-how, etc.
• Integrate/optimize maintenance platforms• Maximize profit based on profit management metrics

26

III-9. Market Trends in Social System-Related BusinessContinue new installation, renovation, and maintenance projects ofinfrastructure facilities in every segment over medium to long term
Fiscal Year
Segment

2019

2020

2021

2022

2023

Ministry of Health, Labour and Welfare: Renovation of water supply and sewerage facilities based on New Water Supply Vision (FY 2014–2023)

Infrastructure

Ministry of Land, Infrastructure, Transport and Tourism: 7th city plan forconversion to underground electric power lines (1,400km, FY 2018–2020)

8th plan for conversion to underground electric power lines (expand to regional areas)

Cabinet Office: Action Plan for Promotion of PPP/PFI (revised 2019, FY 2013–2022, business scale of ¥21 trillion)
Ministry of Land, Infrastructure, Transport and Tourism: Three-year emergency
countermeasures for prevention and disaster mitigation plans (FY 2020: approx. ¥7 trillion)

National Resilience measures (FY 2013–2023: ¥200 trillion)

Agency for Natural Resources and Energy: 5th Basic Energy Plan (renewable energy mix, targeting 22–24% for 2030)
Increase in amount of solar systems introduced*1 (2020: 71GW, 2030: 133GW, 2050: 334GW)

Renewable
EnergyAgency for Natural Resources and Energy: Promotion of zero energy buildings (ZEB) and zero energy houses (ZEH)(by 2020 making all newly constructed public buildings ZEB and the majority of newly constructed housing ZEH, and by 2030, making newly constructed buildings ZEB on average and newly constructed housing ZEH on average)

Ministry of Agriculture, Forestry and Fisheries: Basic plan for the utilization of biomass (targeting creation of ¥500.0 billion market by 2025)

Ministry of Economy, Trade and Industry: Basic hydrogen strategy (creating 900 hydrogen stations, 800,000 fuel cell vehicles in 2030)

Ministry of Land, Infrastructure, Transport and Tourism: Shuto Expressway Renewal Plan (FY2014–2028: ¥626.2 billion),
NEXCO: East, Central and West Japan Expressway Renewal Plan (2,100km, ¥3 trillion)

Electric
Facilities

Termination measures for frequency reorganization (1.7GHz) (¥190.0 billion face to Ministry of Defense/up to FY2024)
Ministry of Defense: Countermeasures and environmental improvement around bases (¥115.3 billion),
disaster prevention and mitigation measures based on 3-year emergency countermeasures (¥50.8 bi¥lion/up to FY2020)
Forecast investment in construction of large-scale data centers (market size of ¥141.2 billion in fiscal 2023**)* RTS Corporation: Forecasting PV installed capacity in Japan toward FY2030/2050 (2019–2020 Edition)** IDC Japan: “IDC Announces Japan Data Center Construction Investment Forecasts,” press release, June 18, 201927

III-10. Growth Strategy for Social System-Related Business
Aim for one-stop, comprehensive engineering business anywhere, throughout Japan
Provide comprehensive engineering services(Infrastructure × utilities × renewable energy × telecommunications)Electric Facilities

Social System-Related and Others Business
Consolidated Net Sales
At least
Continue
1,900
approx.
(Unit: ¥100 million)+ 4%/year

1,685

311

• Disaster prevention andmitigation

Communications Electrical

Water supply
piping483• Concessions

Gas piping

Road paving Civil engineering Construction

HVAC

Sanitation

930
Nationwide construction
Maintenance capabilities

293

Electric
Facilities• Develop new domains• Biomass generation

Competition-beating construction line-up

753

303

• Undergrounding PFIs

Core Competencies

Infrastructure
and Other
SectorRenewable
Energy• Captive consumption-typesolar power• New energy businesses

1,700

Infrastructure andOther Sectors• Large-scale data centers• Expand area

1,367
909

Renewable Energy

Advanced estimate
capabilities
Supervision capabilities

Extensive project
credentials Advanced
technical capabilities

Priority measures for achieving targets390

Top line

380

FY Mar. 2019 FY Mar. 2020 FY Mar. 2021
Forecasts

FY Mar. 2024
Targets•

Expand new domains (water supply and sewerage processing facilities, rivers, sea
embankments, hydrogen-related, etc.)•

Expand existing domains (undergrounding PFIs, water supply and sewerage,
expressways, Ministry of Defense-related projects, etc.)

Bottom line•

Reduce construction unit costs by reviewing outsourcing and procurement methods•

Promote greater efficiency using new technology and new construction methods•

Maximize profit based on profit management metrics

28

IV. Shareholder Returns PolicyIV-1. Shareholder Returns Policy (Dividends and Acquisition of Treasury Shares)
Maintain total return ratio target of 70% through ¥5 increasein dividend and acquisition of treasury shares
ProfitTotal Dividends

280
51

Purchase of Treasury Shares(Unit: ¥100 million)

Profit(Forecasts)

Negative
Goodwill<167>

144 80

39

44

58

80
72

260 8095

255+αPurchase ofTreasury

30 Shares

101 Total
Dividends

March 2016

March 2017*

March 2018

March 2019**

March 2020

March 2021
(Planned)

Interim

¥15

¥20

¥25

¥30

¥35

¥40

Year-end

¥20

¥20

¥25

¥30

¥40

¥40

36.8%

40%

67.5%

52% +α14.16
million shares(10.0%)

—

8.6%

8.1%

Dividends
Per Share

154 80203 80[228]

Consolidated
Payout Ratio
Total Return Ratio

25.6%

30.8%
<26.6%>

28.0%

77.2%

85.6%
<74.0%>

67.5%

Number of Sharesof Treasury Sharesat the End of the Period(Ownership Ratio)***30.24
million shares(21.5%)

31.86
million shares(22.6%)

26.42
million shares(18.7%)

ROE

7.9%

Dividends + treasury shares
Profit7.3%<8.3%>

9.4%

26.1%[32.0％]

54.5%[66.8％]

12.29
million shares(8.7%)

10.6%[8.7％]* Figures in < > are estimates assuming no impairment loss on goodwill.
** Figures in [ ] are estimates assuming no negative goodwill.
*** The total number of issued shares changed from 145.97 million shares to 141.00 million shares with the cancellation of 4.97 million shares of treasury shares on November 30, 2015.

30

Data Book
Detailed Data
01
02
03
04
05

Consolidated Statements of Income(COMSYS.HD Consolidated)
Income Statements [by operating company group](results for fiscal year ended March 31, 2020)
Income Statements [by operating company group](forecast for fiscal year ending March 31, 2021)
Orders Received, Net Sales, and Contract Backlogs by Business Area
(COMSYS.HD Consolidated)
Orders Received and Net Sales by Detailed Business Area
for Eight Companies on a Non-Consolidated Simple Sum Basis

Reference06

Capital Expenditure, Depreciation and Amortization

07

Consolidated Balance Sheets (Condensed)

08

Consolidated Cash Flow (Condensed)

Cautionary Statement with Respect to Forward-Looking Statements
Some of the information in this document contains forward-looking statements, which are subject to various risks and uncertainties. As a result, the Company’s actual activities and business results
could differ significantly.
Important factors bearing on the Company’s actual business results include, but are not limited to, changes in the economic environment for the Company’s business domains, social
trends, trends in demand for the services that the Company offers, or downward pressure on prices and fees due to intensifying competition.

01

Consolidated Statements of Income (COMSYS.HD Consolidated)(Unit: ¥100 million)

FY March 2019

FY March 2020

FY March 2021

1st Half Year
Results

Full Year

1st Half Year
Results

YoY
Percentage
difference

Full Year
Targets

Full Year
Results

YoY
Percentage
difference

vs. Targets
Percentage
difference

Full Year
Forecasts

YoY
Percentage
difference

(a)

(b)

(c)

((c)-(a))/(a)

(d)

(e)

((e)-(b))/(b)((e)-(d))/(d)(f)((f)-(e))/(e)Orders Received

1,901

5,055

3,188

67.6%

5,370

5,907

16.8%

10.0%

5,650

-4.4%

Net Sales

1,778

4,817

2,430

36.6%

5,400

5,608

16.4%

3.9%

5,600

-0.2%

Gross Profits

227

652

303

33.6%

725

736

12.8%

1.5%

730

-0.8%

(12.8%)(13.5%)(12.5%)(13.4%)(13.1%)

SG&A Expenses

117

299

174

48.0%

345

346

15.6%

0.5%

350

1.0%

Operating Profit

109

352

129

18.1%

380

389

10.5%

2.5%

380

-2.4%

(6.2%)(7.3%)(5.3%)(7.0%)(6.9%)

112

360

136

385

400

(6.3%)(7.5%)(5.6%)(7.1%)(7.1%)

Profit Attributable to
Owners of Parent

71

280

88

255

259

(Net Profit Margin)(4.0%)(5.8%)(3.6%)(4.7%)(4.6%)(Gross Profit Margin)(Operating Margin)
Ordinary Profit(Ordinary Profit Margin)

21.4%

24.2%

(13.0%)(6.8%)
11.1%

4.1%

385

-3.9%

(6.9%)-7.2%

1.9%

Notes:
1.The three corporate groups of NDS Co., Ltd., SYSKEN Corporation, and Hokuriku Denwa Kouji Co., Ltd. were consolidated on October 1, 2018.
2. Orders received and full-year forecasts for the fiscal year ended March 31, 2019 include the contract backlogs of the abovementioned three corporate groups as of the end of the second quarter of the fiscal year.
3. Figures are rounded down to the nearest whole unit. Profit margin and percentage difference are calculated using a base unit of yen, and figures are rounded to the nearest first decimal place.

255(4.6%)

-1.9%

02-1

Income Statements [by operating company group](results for fiscal year ended March 31, 2020)(Unit: ¥100 million)◆ Comparisons with
the Previous Term

Nippon COMSYS-G

SANCOM-G

TOSYS-G

TSUKEN-G

Mar. 2019
Results

Mar. 2020
Results

Percentage
difference

Mar. 2019
Results

Mar. 2020
Results

Percentage
difference

Mar. 2019
Results

Mar. 2020
Results

Percentage
difference

Mar. 2019
Results

Mar. 2020
Results

Percentage
difference

Orders Received

2,779

3,130

12.6%

593

594

0.2%

281

321

14.0%

505

562

11.3%

Net Sales

2,806

2,875

2.5%

566

584

3.1%

288

320

11.1%

515

529

2.7%

Gross Profits

372

360

-3.4%

74

82

11.5%

29

30

3.6%

63

68

8.4%

(13.3%)(12.5%)(13.1%)(14.2%)(10.1%)(9.4%)(12.3%)(13.0%)

SG&A Expenses

159

154

-2.8%

24

25

3.9%

14

15

1.9%

31

33

4.8%

Operating Profit

213

205

-3.9%

49

56

15.4%

14

15

5.3%

31

35

12.0%

(7.6%)(7.1%)(8.7%)(9.7%)(4.9%)(4.7%)(6.1%)(6.7%)

216

208

49

56

14

15

32

36

(7.7%)(7.3%)(8.7%)(9.7%)(5.0%)(4.8%)(6.3%)(6.9%)

141

135

29

38

8

8

20

25

(5.0%)(4.7%)(5.1%)(6.6%)(2.9%)(2.7%)(4.1%)(4.9%)(Gross Profit Margin)(Operating Margin)
Ordinary Profit(Ordinary Profit Margin)
Profit Attributable to
Owners of Parent(Net Profit Margin)◆ Comparisons withTargets

-3.6%

-4.3%

Nippon COMSYS-G

14.5%

32.4%

SANCOM-G

5.7%

3.8%

TOSYS-G

11.4%

23.4%

TSUKEN-G

Mar. 2020
Targets

Mar. 2020
Results

Percentage
difference

Mar. 2020
Targets

Mar. 2020
Results

Percentage
difference

Mar. 2020
Targets

Mar. 2020
Results

Percentage
difference

Mar. 2020
Targets

Mar. 2020
Results

Percentage
difference

Orders Received

2,860

3,130

9.4%

630

594

-5.6%

290

321

10.9%

510

562

10.4%

Net Sales

2,910

2,875

-1.2%

610

584

-4.2%

300

320

7.0%

510

529

3.9%

Gross Profits

380

360

-5.2%

74

82

11.2%

31

30

-2.8%

65

68

5.8%

(13.1%)(12.5%)(12.2%)(14.2%)(10.3%)(9.4%)(12.7%)(13.0%)

SG&A Expenses

160

154

-3.3%

25

25

3.8%

16

15

-5.6%

33

33

0.8%

Operating Profit

220

205

-6.6%

49

56

14.9%

15

15

0.1%

32

35

10.9%

(7.6%)(7.1%)(8.1%)(9.7%)(5.0%)(4.7%)(6.3%)(6.7%)(Gross Profit Margin)(Operating Margin)

Note: Business transactions between operating groups have not been eliminated.

Statements [by operating company group]
02-2 Income(results for fiscal year ended March 31, 2020)(Unit: ¥100 million)◆ Comparisons with
the Previous Term

NDS-G

SYSKEN-G

Hokuriku Denwa Kouji-G

COMSYS JOHO SYSTEM-GMar. 2019
Results

Mar. 2020
Results

Percentage
difference

Mar. 2019
Results

Mar. 2020
Results

Percentage
difference

Mar. 2019
Results

Mar. 2020
Results

Percentage
difference

Mar. 2019
Results

Mar. 2020
Results

Percentage
difference

Orders Received

599

864

44.1%

254

379

49.0%

90

153

70.0%

119

132

10.8%

Net Sales

448

859

91.6%

167

319

91.0%

75

146

93.3%

120

129

7.3%

Gross Profits

57

108

90.1%

17

36

108.7%

11

19

64.6%

20

21

4.5%

(12.7%)(12.6%)(10.6%)(11.6%)(15.3%)(13.0%)(16.7%)(16.3%)

SG&A Expenses

36

67

82.4%

11

24

106.8%

7

15

112.3%

7

7

3.2%

Operating Profit

20

41

104.2%

6

12

112.3%

43-17.7%

12

13

5.2%

(4.5%)(4.8%)(3.6%)(4.0%)(5.6%)(2.4%)(10.5%)(10.3%)

22

46

7

15

4

3

12

13

(5.0%)(5.4%)(4.2%)(4.7%)(5.8%)(2.6%)(10.7%)(10.5%)

16

27

5

7

3

2

8

8

(3.6%)(3.2%)(3.5%)(2.3%)(4.9%)(1.6%)(7.1%)(6.4%)(Gross Profit Margin)(Operating Margin)
Ordinary Profit(Ordinary Profit Margin)
Profit Attributable to
Owners of Parent(Net Profit Margin)◆ Comparisons withTargets

103.4%

69.0%

NDS-G

111.7%

24.6%

SYSKEN-G-12.8%-34.6%

Hokuriku Denwa Kouji-G

5.5%

-3.3%

COMSYS JOHO SYSTEM-GMar. 2020
Targets

Mar. 2020
Results

Percentage
difference

Mar. 2020
Targets

Mar. 2020
Results

Percentage
difference

Mar. 2020
Targets

Mar. 2020
Results

Percentage
difference

Orders Received

820

864

5.4%

330

379

14.9%

134

153

14.2%

—

132

—

Net Sales

820

859

4.8%

305

319

4.8%

135

146

8.6%

—

129

—

Gross Profits

100

108

8.5%

33

36

11.9%

17

19

12.0%

—

21

—

(12.2%)(12.6%)(10.8%)(11.6%)(12.6%)(13.0%)—(16.3%)

SG&A Expenses

64

67

4.8%

25

24

-3.7%

14

15

7.3%

—

7

—

Operating Profit

36

41

15.1%

8

12

60.5%

2

3

39.7%

—

13

—

(4.4%)(4.8%)(2.6%)(4.0%)(1.9%)(2.4%)—(10.3%)(Gross Profit Margin)(Operating Margin)

Mar. 2020
Targets

Notes: 1. Business transactions between operating groups have not been eliminated.
2. As the COMSYS JOHO SYSTEM Group is included in the financial statements starting from the fiscal year ended March 31, 2020, “—” has been used to indicate the targets.

Mar. 2020
Results

Percentage
differenceStatements [by operating company group]
03 Income(forecasts for fiscal year ending March 31, 2021)(Unit: ¥100 million)◆ Forecasts for
the Full Year

Nippon COMSYS-GMar. 2020

Mar. 2021

Results

SANCOM-G
Mar. 2020

Mar. 2021

Forecasts

Percentage
difference

Results

TOSYS-GMar. 2020

Mar. 2021

Forecasts

Percentage
difference

Results

TSUKEN-G
Mar. 2020

Mar. 2021

Forecasts

Percentage
difference

Results

Forecasts

Percentage
difference

Orders Received

3,130

2,890

-7.7%

594

660

11.0%

321

310

-3.6%

562

520

-7.6%

Net Sales

2,875

2,950

2.6%

584

640

9.5%

320

320

-0.3%

529

550

3.8%

Gross Profits

360

360

-0.1%

82

82

-1.0%

30

30

-0.4%

68

73

6.2%

(12.5%)(12.2%)(14.2%)(12.8%)(9.4%)(9.4%)(13.0%)(13.3%)

SG&A Expenses

154

158

2.1%

25

27

4.0%

15

14

-4.0%

33

35

7.3%

Operating Profit

205

202

-1.7%

56

55

-3.3%

15

15

3.2%

35

37

5.1%

(7.1%)(6.8%)(9.7%)(8.6%)(4.7%)(4.8%)(6.7%)(6.8%)

Mar. 2020

Mar. 2021

Results(Gross Profit Margin)(Operating Margin)

NDS-G

SYSKEN-G
Mar. 2021

Forecasts

Percentage
difference

Mar. 2020
Results

Hokuriku Denwa Kouji-GMar. 2021

Forecasts

Percentage
difference

Mar. 2020
Results

COMSYS JOHO SYSTEM-GMar. 2021

Forecasts

Percentage
difference

Mar. 2020
Results

Forecasts

Percentage
difference

Orders Received

864

780

-9.8%

379

330

-13.0%

153

160

4.6%

132

140

5.4%

Net Sales

859

790

-8.1%

319

340

6.4%

146

160

9.2%

129

135

4.2%

Gross Profits

108

101

-6.9%

36

36

-2.5%

19

21

10.3%

21

22

4.2%

(12.6%)(12.8%)(11.6%)(10.6%)(13.0%)(13.1%)(16.3%)(16.3%)

SG&A Expenses

67

63

-6.1%

24

23

-3.7%

15

16

7.4%

7

8

7.4%

Operating Profit

41

38

-8.3%

12

12

-0.3%

3

4

23.1%

13

13

2.3%

(4.8%)(4.8%)(4.0%)(3.8%)(2.4%)(2.7%)(10.3%)(10.1%)(Gross Profit Margin)(Operating Margin)

Note: Business transactions between operating groups have not been eliminated.

Orders Received, Net Sales, and Contract Backlogs by Business Area

04 (COMSYS.HD Consolidated)◆ Orders Received
Business Area

FY March 2019

(Unit: ¥100 million)
FY March 2021

FY March 2020

1st Half Year
Results

Full Year

1st Half Year
Results

(a)

(b)

(c)

YoY
Percentage
difference((c)-(a))/(a)Full Year
Targets

Full Year
Results

(d)

(e)

YoY
vs. Targets
Percentage
Percentage
difference
difference((e)-(b))/(b) ((e)-(d))/(d)Full Year
Forecasts(f)

YoY
Percentage
difference((f)-(e))/(e)NTT Engineering

889

2,229

1,343

51.1%

2,325

2,554

14.6%

9.9%

2,290

-10.4%NCC Engineering

173

465

182

5.4%

480

434

-6.7%

-9.5%

510

17.5%

IT Solutions

335

809

536

59.6%

870

1,008

24.6%

16.0%

1,030

2.1%

Social System-Related
and Other

503

1,550

1,126

123.8%

1,695

1,909

23.1%

12.6%

1,820

-4.7%

1,901

5,055

3,188

67.6%

5,370

5,907

16.8%

10.0%

5,650

-4.4%

Total

◆ Net Sales
Business Area

FY March 2019

FY March 2020

1st Half Year
Results

Full Year

1st Half Year
Results

(a)

(b)

(c)

YoY
Percentage
difference((c)-(a))/(a)FY March 2021

Full Year
Targets

Full Year
Results

(d)

(e)

YoY
vs. Targets
Percentage
Percentage
difference
difference((e)-(b))/(b) ((e)-(d))/(d)Full Year
Forecasts(f)

YoY
Percentage
difference((f)-(e))/(e)NTT Engineering

806

2,268

1,057

31.1%

2,465

2,504

10.4%

1.6%

2,410

-3.8%

NCC Engineering

162

430

193

18.6%

445

437

1.6%

-1.7%

480

9.7%

IT Solutions

263

750

432

64.4%

825

981

30.8%

18.9%

1,010

2.9%

Social System-Related
and Other

545

1,367

746

36.8%

1,665

1,685

23.2%

1.2%

1,700

0.9%

1,778

4,817

2,430

36.6%

5,400

5,608

16.4%

3.9%

5,600

-0.2%

Total

◆ Contract Backlogs
Business Area

FY March 2019

FY March 2020

1st Half Year
Results

Full Year

1st Half Year
Results

(a)

(b)

(c)

YoY
Percentage
difference((c)-(a))/(a)Full Year
Results(e)

YoY
Percentage
difference((e)-(b))/(b)NTT Engineering

817

695

980

19.9%

745

7.2%

NCC Engineering

95

119

108

13.9%

115

-2.8%

IT Solutions

223

209

312

40.2%

236

13.2%

Social System-Related
and Other

582

807

1,186

103.7%

1,031

27.7%

1,718

1,831

2,589

50.6%

2,129

16.3%

Total

Orders Received and Net Sales by Detailed Business Area
for Eight Companies on a Non-Consolidated Simple Sum Basis

05◆ Orders Received
Business Area

FY March 2019

(Unit: ¥100 million)
FY March 2021

FY March 2020

1st Half Year
Results

Full Year

1st Half Year
Results

YoY
Percentage
difference

(a)

(b)

(c)

((c)-(a))/(a)Full Year
Targets

Full Year
Results

(d)

(e)

YoY
Percentage
difference

vs. Targets
Percentage
difference((e)-(b))/(b) ((e)-(d))/(d)Full Year
Forecasts

YoY
Percentage
difference(f)((f)-(e))/(e)Access

511

1,378

871

70.3%

1,500

1,633

18.5%

8.9%

1,465

-10.3%

Network

96

244

123

28.2%

180

239

-2.2%

33.0%

190

-20.7%

Mobile

272

578

325

19.2%

600

638

10.3%

6.3%

605

-5.2%

Subtotal

881

2,201

1,320

49.9%

2,280

2,511

14.1%

10.1%

2,260

-10.0%NCC Engineering

176

464

177

0.5%

470

428

-7.7%

-8.9%

500

16.8%

IT Solutions

255

602

402

57.8%

625

746

24.0%

19.5%

780

4.4%

Social System-Related and Other

156

669

677

334.3%

820

1,028

53.6%

25.4%

870

-15.4%

1,468

3,937

2,577

75.5%

4,195

4,714

19.7%

12.4%

4,410

-6.5%

Full Year
Targets

Full Year
Results

YoY
Percentage
difference

vs. Targets
Percentage
difference

(d)

(e)

NTT Engineering

Total

FY March 2019

◆ Net Sales
Business Area

FY March 2020

1st Half Year
Results

Full Year

1st Half Year
Results

YoY
Percentage
difference

(a)

(b)

(c)

((c)-(a))/(a)FY March 2021((e)-(b))/(b) ((e)-(d))/(d)Full Year
Forecasts

YoY
Percentage
difference(f)((f)-(e))/(e)Access

454

1,336

700

53.9%

1,520

1,608

20.3%

5.8%

1,495

-7.1%

Network

80

223

91

14.7%

205

241

7.7%

17.6%

230

-4.6%

Mobile

266

681

247

-7.0%

680

612

-10.1%

-9.9%

635

3.6%

Subtotal

801

2,241

1,039

29.7%

2,405

2,462

9.8%

2.4%

2,360

-4.2%

NCC Engineering

164

428

189

14.8%

440

430

0.4%

-2.2%

460

6.9%

IT Solutions

192

551

314

63.6%

590

720

30.6%

22.1%

750

4.1%

Social System-Related and Other

223

555

292

30.8%

745

727

30.9%

-2.4%

825

13.5%

1,382

3,777

1,835

32.8%

4,180

4,340

14.9%

3.8%

4,395

1.3%

NTT Engineering

Total

Notes: 1. The non-consolidated simple sum data are for the following eight companies: Nippon COMSYS Corporation; SANWA COMSYS Engineering Corporation; TOSYS Corporation; TSUKEN Corporation; NDS Co., Ltd.; SYSKEN Corporation;
Hokuriku Denwa Kouji Co., Ltd.; and COMSYS JOHO SYSTEM Corporation.
2. The first half- and full-year results for the fiscal year ended March 31, 2019 are the totals of non-consolidated simple sum data for the five companies above, excluding NDS Co., Ltd., SYSKEN Corporation, and Hokuriku Denwa Kouji Co., Ltd.

06 Capital Expenditure, Depreciation and Amortization(Unit: ¥100 million)
FY March 2019

FY March 2020

FY March 2021

Comparisons with FY March 2019
Results

Capital Expenditure

Results

Difference

Percentage
difference

Comparisons with FY March 2020
Forecasts

Difference

Percentage
difference

Tangible Assets

93

108

14

15.5%

107

-1

-0.9%

Intangible Assets

12

8

-3

-30.0%

22

13

151.1%

106

117

10

10.1%

129

12

10.6%

74

91

17

22.9%

102

11

12.0%

Total

Depreciation and Amortization

07 Consolidated Balance Sheets (Condensed)
ASSETSLIABILITIES AND NET ASSETS(Unit: ¥100 million)

4,399

4,500

+101

• Notes receivable, accounts
receivable from completed
construction contracts
and other+80• Cash and deposits+73• Costs on construction
contracts in progress• Other current assets

-29

2,570

(+19)
• Notes payable, accounts
payable for construction
contracts and other• Advances received on
construction contracts in progress• Short-term borrowings• Income taxes payable• Other current liabilities• Property, plant and equipment+28• Goodwill-10• Other assets

-17

+26
+10
-15
-6
+4

(-10)

1,180
213

223

-24

(+92)

Net
Assets
3,014

(+0)

Fixed
Assets1,929Long-Term
Liabilities

4,500

+101

4,399
Current
Liabilities
1,161(+100)

Current
Assets2,470(Unit: ¥100 million)• Capital surplus+6• Retained earnings+177
Profit+259
Cash dividends-83• Treasury shares-65
Purchase of treasury shares +14
Disposal of treasury shares -80• Other
-26

3,106

1,929
Equity ratio
From 67.8% to 68.3%

As2019.3.31現在
of March 31, 2019

As2020.3.31現在
of March 31, 2020

As2019.3.31現在
of March 31, 2019

As2020.3.31現在
of March 31, 2020

08 Consolidated Cash Flow (Condensed)
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

+374

-99

• Profit before income taxes• Depreciation• Increase in in trade payables• Decrease in costs on
construction contracts inprogress• Income taxes paid
• Increase in trade receivables• Other

+394
+91
+18

• Purchase of property, plant andequipment• Purchase of intangible assets• Other

+17
-140
-77
+70

(Unit: ¥100 million)
Cash Flows from
Financing Activities
-102
-9
+12

-198
• Purchase of treasury shares• Dividends paid
• Other

-80
-83
-34

355
Cash and
Cash Equivalents
at End of Year

277
Cash and
Cash Equivalents
at End of YearAs of March 31, 2019+77

As of March 31, 2020

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

Cautionary Statement with Respect to Forward-Looking Statements

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

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