Presentation of Performance
Fiscal Year Ended March 31, 2014

May 15, 2014

Contents
I . Overview of Performance for the Fiscal Year Ended March 31, 2014
1. Highlights of Performance1

2. Details of Orders Received by Segment2

3. Details of Net Sales by Segment

3

4. Details of Operating Income

4

II . Full Year Forecasts for the Fiscal Year Ending March 31, 20155

III . Trends in Principal Businesses
1. Trends in NTT Mobile Business6

2. Trends in NCC Business7

IV . Strategies for Top-Line Expansion (Overview)8

1. Solar Power Generation Business9

2. Strategy for Top Line Expansion—M&A Strategy

10

V . Medium- and Long-Term Vision
1. Medium- and Long-Term Vision
2. Initiatives for Medium- and Long-Term Vision
VI . Progress on COMSYS WAY a Structural Reforms
1. Trends in Results of Structural Reform
VII. Policy on Shareholder Returns and Status of Treasury Stock

11
12
13
14
15

I-1. Highlights of Performance for the Fiscal Year Ended March 31, 2014
Substantial sales growth and record-high profit for second successive year
(Unit: ¥100 million)

Performance inprevious term

Comparisons withthe previous term

Forecasts

Percent of Net Sales

Percent of Net Sales

Difference

Percent of Net Sales

Orders Received

3,279

3,356

-76

3,200

+79

Net Sales

3,313

3,160

+152

3,250

+63

457

412

+45

425

+32

Performance
Unit: ¥100 million

Gross Proﬁts

13.8%

Selling, General and
Administrative Expenses
Operating Income

182

-4

13.1% +0.7 percentage points

185

-2

5.9%

-0.4 percentage points

5.7%-0.2 percentage points

275

225

+50

240

+35

280
8.5%

Net Income

186

163
4.9%

7.1% +1.2 percentage points

229

+51

7.2% +1.3 percentage points

132

+31

4.2% +0.7 percentage points

7.4% +0.9 percentage points

245

+35

7.5% +1.0 percentage points

150

Remarks

Difference

5.5%

8.3%

Recurring Proﬁt

13.0% +0.8 percentage points

Comparisonswith forecasts+13

4.6% +0.3 percentage points

Orders Received
Compared with the previous term, orders
received declined slightly due to the impactof orders being moved forward and bulk
orders received for NCC-related projects inthe previous year, although the IT and social
infrastructure businesses remained robust.
Compared with forecasts, although the social
infrastructure business failed to meetprojections, orders received increased because
LTE-related projects and network-related
construction remained steady.

Net Sales
Substantial sales growth was achieved
compared with both the previous term andforecasts due to completion of a wide range oforders carried forward (LTE-related projects,
solar construction projects, etc.)

IncomeSubstantial proﬁt growth and record-high proﬁt
for the second successive year was achieved
compared with both the previous term andforecasts due to the growth in net sales andthe product mix, as well as the effect of the
COMSYS WAYa structural reforms implemented
to date and cost reductions.

Note: Figures are rounded down to the nearest whole unit.

1I-2. Details of Orders Received by Segment for the Fiscal Year Ended March 31, 2014
Orders received did not reach the previous fiscal year’s performance, but the targets were achieved(Unit: ¥100 million)

Comparisonswith Forecasts

Comparisons with
the Previous Term
Targets not achieved due tohigh targets set-76(-2.3%)

NTT-G
-3.2%

Decline due to au orders moved
forward from previous fiscal year

Decline due to downturn in Softbank bulk orders
Decline in KDDI landline-related orders

Increase in projects received through alliances (systemconstruction in health care and education sectors, etc.)
Increase in Postal advanced NETwork (P-NET)-related work

-64

NCC
-16.5%

Social System-Related
and Other+10.7%
IT
+4.7%

-77

Social System-Related
IT
and Other+1.7%-11.3%

+8

-54

NCC
-2.1%

-8

+79
(+2.5%)

NTT-G
+7.5%

Growth in projects received
through alliances

+41

+23
+134

3,356

NTT Business (Access)Decline in service integration projects
Decline in previous fiscal year’s utility
pole renewal project bulk orders

Growth in solar power generationrelated construction projects
Growth in government and
NTT Business (Network)
municipal office projects
Increase in electrical reception projects Growth in other new projects

3,279

3,200

NTT Business (Network)
Increase in electrical reception projects

DOCOMO business
Increase in LTE-related projects

Performance inPrevious Term

NTT Business (Access)Decline in service integration projects

DOCOMO business
Increase in LTE-related projects

Performance

Target2

I-3. Details of Net Sales by Segment for the Fiscal Year Ended March 31, 2014
Sales growth compared with previous term and forecasts due to completionof wide range of projects carried forward
Comparisons with
the Previous Term

Comparisonswith Forecasts

Growth in projects received
through alliances

Growth in solar power generationrelated construction projects
Growth in expressway-related projects+152(+4.8%)

Completion of Softbank projects carriedforward (platinum band, etc.)
Completion of au projects carriedforward (LTE-related)

NTT-G
+1.5%

Social SystemRelated and Other IT
-5.1%
+5.9%

Social SystemRelated and Other+14.3%

-21

+29

+63
(+2.0%)
NCC
+4.0%

+17
IT
+7.1%

Growth in solar power generationrelated construction projects
Targets not achieved due to hightargets set

+50

NCC
+9.2%

+34

+37

Growth in projects received
through alliances

NTT-G
+2.0%

+38
Increase as au orders
moved forward (LTE)NTT Business (Access)Decline in service integration projects+29

NTT Business (Network)
Increase in electrical reception projects
DOCOMO business
Increase in LTE-related projects

3,160

NTT Business (Access)Decline in service integration projects(Unit: ¥100 million)

3,313

3,250

Performance

TargetNTT Business (Network)
Increase in electrical reception projects
DOCOMO business
Increase in LTE-related projects

Performance inPrevious Term

3

I-4. Details of Operating Income for the Fiscal Year Ended March 31, 2014
Significant profit growth due to increase in net sales and results of structural reforms(Unit: ¥100 million)

Comparisons with
the Previous Term

Comparisonswith Forecasts+50
Improvement
due to risein profit margin(+22.3%)

Improvement
due to increasein net sales+17
Product mix

Improvement
due to cost
reduction

Improvement
due to cost
reduction

+4

+2

+22

+28

Structuralreforms andimproved
productivity

Structuralreforms andimproved
productivity+35

Improvement
due to risein profit margin(+14.9%)Improvement
due to increasein net sales+10
Product mix

225

275

240

Operating Margin(7.1%)

Operating Margin(8.3%)

Operating Margin(7.4%)

Performance inPrevious Term

Performance

Target4

II. Full Year Forecasts for the Fiscal Year Ending March 31, 2015
Substantial earnings growth and all-time high profit for third successive fiscal year forecasted(Unit: ¥100 million)

Unit: ¥100 million

FY March 2014
Performance

FY March 2015
Targets

Comparisons withFY March 2014

Percent of Net Sales

Percent of Net Sales

Difference

3,279

3,490

+210

3,313

3,450

+136

457

515

+57

13.8%

14.9%

+1.1 percentage points

Orders Received

Net Sales

Gross Proﬁts
Selling, General and

182

225

+43

Administrative Expenses

5.5%

6.5%

+1.0 percentage points

275

290

+14

8.3%

8.4%

+0.1 percentage points

280

295

+14

8.5%

8.6%

+0.1 percentage points

163

180

+16

4.9%

5.2%

+0.3 percentage points

Operating Income

Recurring Proﬁt

Net Income

Remarks

Orders Received
Orders received in the IT and social infrastructure businesses are
forecast to grow due to anticipation of public-sector investment
and private-sector capital expenditure, despite a decline intelecommunications projects for carriers. A further increase in orders
received is projected due to the M&A strategy (consolidation of
Ecosystem Japan Co., Ltd.)Net Sales
Although mobile-related projects will rise steadily, access andnetwork-related projects and the NCC Engineering business will
decline from the impact of special procurement orders in theprevious ﬁscal year. Meanwhile, sales growth is projected from theIT and social infrastructure businesses as well as new consolidated
subsidiaries due to strategies for top-line expansion.

IncomeOperating income is projected to achieve an all-time high for a third
successive ﬁscal year. Although proﬁt will rise due to the increase in
net sales, the operating proﬁt margin is projected to grow by 0.1 of apercentage point due to the change in the product mix (sales growthin IT and social infrastructure businesses) and an increase in SG&A
expenses as a result of new consolidated subsidiaries.

Note: Figures are rounded down to the nearest whole unit.

5III-1. Trends in NTT Mobile Business
NTT DOCOMO Capex
Capex resources focused on strengthening LTE(Unit: ¥100 million)

7,537
Other (mobile
and other +information
systems, etc.)

LTE

7,031

Introduction of LTE-Advanced
225Mbps service, launch during fiscal 2014
FY 20146,900

FY 2015
LTE-Advanced

3,331

2,189

2,080

Quad band LTE

3,878

4,650

150Mbpsdelivery underway

634

170

Mar. 2014

Mar. 2015(Target)2,519

Verification and testing
commercial launchMore distant future
5G development
underway

Aiming for
10Gbps

225Mbps

FOMA

2,016
Mar. 2013

Source: NTT DOCOMO Results Briefing Materials

Source: NTT DOCOMO Results Briefing Materials

Orders received at COMSYS Group (mobile)
Orders received expected to remain at high level(Unit: ¥100 million)

LTE base stations Further substantial increase(Unit: Number of base station)
LTE base stations

1.7 times

24,4003,500 base stations

Mar. 2013

Mar. 2014

551

95,300520

55,300
100Mbps and higher
compatible basestations: 40,000

Mar. 2015(Projection)

Source: NTT DOCOMO Results Briefing Materials

712

668

Target Result
Mar. 2012

595

589

Target Result
Mar. 2013

Target Result
Mar. 2014

690

TargetMar. 2015

COMSYS Group materials: simple total for five companies NTT Engineering business – mobile6III-2. Trends in NCC BusinessKDDI Capex

Softbank Capex (in Japan)

Growth in au mobile-related investment expectedMoving forward with large-scale Capex in base station construction, etc.

(Unit: ¥100 million)

5,718
4,670

(Note 1)

5,800

297

eAccess 7,794
WCP
1,106
WILLCOM(Unit: ¥100 million)

7,474

5,500

5,007

3,443

3,800

Mobile

1,978

2,000

Fixed
(Note 2)Mar. 2014

Mar. 2015(Forecast)

4,500

6,688

3,382

1,288
Mar. 2013

Notes: 1.Implementing ¥29.7 billion in additional investment to expand LTE facilities
2. Includes impact of J:COM consolidation from ﬁscal year ended March 2014
Source: KDDI Results Briefing Materials

LTE-Advanced
Enabling ultra-high-speed telecommunications
through carrier aggregation (CA)

Download
maximum 75Mbps

Simultaneous use

Download
maximum 75Mbps

Mar. 2013(Japan standards)

Mar. 2014

Mar. 2015

Targets (International accounting standards)

Orders received at COMSYS Group (NCC)
Slight decrease expected due to impact of bulk orders in previous fiscal year
(Unit: ¥100 million)

470
395

355

Download
maximum
150Mbps

2.1GHz band
Note: CA is a telecommunications technology for LTE-Advanced that provides high-speed
telecommunications by combining multiple frequency blocks to broaden bands virtually.
Source: KDDI Results Briefing Materials

Mar. 2016

Source: Softbank Results Briefing Materials

Progressive expansion
from summer 2014

Conceptual Diagram of CA

800MHz band

Mar. 2012

440
340

Target Result
Mar. 2012

Target Result
Mar. 2013

402

370

Target Result
Mar. 2014

TargetMar. 2015

COMSYS Group materials: simple total for five operating companies NCC Engineering business7

IV. Strategies for Top-Line Expansion (Overview)*Amended and revised from the materials for COMSYS Holdings
performance presentation for the ﬁscal year ended March 2013

External Environment
Signs of economic boom due to “Abenomics” (monetary easing, growthstrategies, proactive fiscal policy)
Aggressive public investment by Ministry of Land, Infrastructure, Transport andTourism, Ministry of Internal Affairs and Communications and Ministry of
Economy, Trade and Industry
Expansion of private capital expenditure and investment in IT accompanying
measures to bring about inflation and depreciation of the yen
Decision to hold Tokyo Olympics
Approval of Basic Act for National Resilience

Top-line GrowthPursue high profit margin throughgreater efficiency and cost reductions

New BusinessesNewbusinesses¥331.3 billion ¥345.0 billion
SocialSystem-Related
and OtherIT
Solutions47%

Non-NTTRelated
business

Net Sales

NCC
EngineeringNTT
Engineering

Mar. 2014

Green innovation businesss &URTHER EXPANSION FROM MEGA SOLAR POWER BUSINESS TO SOLAR POWER BUSINESSES
for medium to small industries and residential applications 0ARTICIPATION IN BIOMASS AND GEOTHERMAL POWER GENERATION BUSINESSES
Enhancement of research and development through establishment of new
Technology Development Office
Expansion of lines of business through alliances and M&As

Non-NTT-Related Buisness (social infrastructure business, IT business)
Urban infrastructure business
Earthquake reconstruction, etc., businessBusiness in remote monitoring of infrastructure facilities, such as dams, using
network and system integration technology
Expansion into medical treatment and education sectors through alliances, etc.
%XPANSION INTO CLOUD RELATED MARKET
Boost to installation of infrastructure due to decision to hold Tokyo Olympics
s /RDER RECEIVED FOR COMMON USE CABLE TUNNEL PROJECT
s /RDER RECEIVED FOR PROJECTS TO COUNTER AGING STRUCTURES AND PROJECTS FOR THE
three ring roads connecting the Tokyo metropolitan area
Expansion of peripheral businesses (building maintenance and security industry)

NTT-Related business

53%

Mar. 2015 Target

NTT-related
business

Medium- and Long-Term%STABLISHMENT OF RAPID RESPONSE SYSTEM FOR SMALL PROJECTS AND REPEAT SIMILAR
PROJECTS
Expansion of blanket contracting for facility mangement operations(maintenance and management operations) by region
Expansion of orders received through active proposals for maintenance offacilities
Receive orders for removal of utility poles by laying cables underground/RDER RECEIVED FOR NETWORK CABLE RECONFIGURATION PROJECT DUE TO CONSTRUCTION
PROJECT FOR THE THREE RING ROADS CONNECTING THE 4OKYO METROPOLITAN AREA

8

IV-1. Solar Power Generation Business

Mega-Solar Power BusinessBusiness investment raised to ¥10.0 billion
From FY March 2014
¥4.3 billion

Planned locations for construction of power stations
In operation
Commercialization ﬁnalized

Other commercialization under study: 14MWs )NVESTMENT c BILLION

Tsu City, Mie Prefecture: 2.5MW

Showa-mura, Gunma Prefecture: 2.4MW

Iga City, Mie Prefecture: 2.0MW

Kitaibaraki City, Ibaraki Prefecture: 5.9MW
Tsukuba City, Ibaraki Prefecture: 1.9MW¥5.7 billion

Kato City, Hyogo Prefecture: 1.2MW
Hitachiota City, Ibaraki Prefecture: 2.8MW

Cumulative
Investment

Total Investment
Projection

Goto City, Nagasaki Prefecture: 1.3MW

Solar Power Construction Business
Targets in fiscal 2013 achieved and aiming for ¥19.0 billion in fiscal 2014
[ Main orders received ]+¥9.0 billion

Location¥19.0 billion¥10.0 billion

March 2014
Targets¥10.3 billion

March 2014
Results

March 2015
Targets

Generating capacity

Orders Received

Tochigi Prefecture

2.6MW¥0.82 billion

Chiba Prefecture

2.2MW¥0.54 billion

Hyogo Prefecture

2.3MW¥0.74 billion

Kumamoto Prefecture

2.6MW¥0.63 billion

9IV-2. Strategy for Top Line Expansion—M&A Strategy
Increasing net sales approximately by ¥18.0 billion as a result of making Ecosystems Japan Co., Ltd., into a subsidiary
To promote an extensive solar power generation business that ranges from mega-solar to industrial and residential systems, the COMSYS Group will make Ecosystems Japan,
which is developing an industrial and residential solar power generation business, into a subsidiary. This will produce synergies by effectively leveraging the management
resources of both companies.
Proﬁle of Target Company
Trade Name

Ecosystem Japan Co.,Ltd.

Head Ofﬁce

Akasaka, Minato-ku, Tokyo

Representative

Hiroshi Shirahige (Currently seconded from Nippon COMSYS)

Paid in Capital¥372 million

EstablishedMay 1997

Share Acquisition Date

May 1, 2014

Shareholder Composition

Mega Solar

Industrial Solar

Residential Solar

Nippon COMSYS Corporation (82%)
Other (17%)
Solar Service Japan Co.,Ltd. (100% equity stake)

Subsidiaries

Solar Power Japan Co.,Ltd. (100% equity stake)

Number of Employees

335 (Consolidated)

Note: The amount of the acquisition and other details have been omitted due to the conﬁdentiality agreement
made between the parties.

Central Building Services Co., Ltd. turned into a wholly owned subsidiary through a simple share exchange (treasury stock)
Proﬁle of Target Company
The company has developed a building
maintenance and security businesswith sites in Kushiro and Sapporo andwill achieve synergies with the TSUKEN
Group in the future.

Trade NameCentral Building Services Co., Ltd.

Share Exchanged Date

April 23, 2014

Head Ofﬁce

Kushiro City, Hokkaido

Shareholder Composition

TSUKEN Act Corporation (100%)

Representative

Masato Yoshimoto (Currently seconded from TSUKEN)

Number of Employees

26

Paid in Capital¥10 million

Net Sales¥500 million (in ﬁscal year ended March 2014)

Established

September 197310

V-1. Medium- and Long-Term Vision(Unit: 100 million)+¥55 billion¥345 billion¥400 billion

4,000

3,500

2,500

Non-NTT business

3,000

Business relating to “National Resilience”measures and the 2020 Tokyo Olympics
Solar power generation business (mega and small-scale systems)
Participation in Smart Grid, Smart City development

Social System
Electrical Communications
Engineering (not including NCC)

Expansion of business with existing clients and expansion of alliance business
Increase project orders from government and municipal offices
Participate in Realization of ICT Smart Towns

IT

LTE (3.9G) construction
New frequency band (700M) related construction: au and eAccess

2,000

LTE-Advanced (4G: LTE-A) construction

NCC

Wireless MAN-Advanced construction
LTE (3.9G) construction

1,500

New frequency band (700M) related construction

NTT-Mobile

500

NTT business

1,000

LTE-Advanced (4G: LTE-A) construction

NTT-Network

Migration to new nodes

5G (LTE-B) constructiontion
IP network crea

Full-scale earthquake
reconstruction

Building high-speed, high-capacity networks
Olympics preparations

NTT-Access(Internet traffic: Annual increase of 10% to 20%)
(Mobile communication: Annual increase of 100% or more)

Installation of smart TV compatible infrastructure (includes 4K and 8K compatible)
Removal of utility poles0
FY 2006

2010

2013

2014
(Target)

2016

2019

2022

2023

11

V-2. Initiatives for Medium- and Long-Term Vision
Speciﬁc Initiatives

Priority Initiatives
COMSYS Holdings Groupmanagement

Establishment of overall coordinating function (marketing, construction)
Establishment of marketing strategy (organization of order allocation)

Business expansion
Strengthen marketing capabilities of consolidated subsidiaries
Expansion of business through M&A

Key segments(mobile and NCC)
Maximum use ofresources

Growth business

Shift from segments with declining sales (access and networks)
Shift personnel within Group
Movement of qualiﬁed personnel within Group

Skill-shifting and multi-skilling for employees
Establishment of employment policies for operating companies and consolidated subsidiaries
Improvement productivity through use of IT (promote harnessing of IT)
Promotion of structuralreforms

Strengthen integrated operation of consolidated subsidiaries
Restructuring and merger of consolidated subsidiaries
12VI. Progress on COMSYS WAYa Structural Reforms
FY March 2009
(Fiscal 2008)

FY March 2010
(Fiscal 2009)

FY March 2011
(Fiscal 2010)

Principal Strategies

Establishment of prime
contractor construction
management
Expansion of centralizedpurchasing within the GroupFY March 2013
(Fiscal 2012)COMSYS WAY— Sustained, More In-Depth
Structural Reform

Group Innovation 2010

Spin-off of information
business
Construction of common
platform

FY March 2012
(Fiscal 2011)

Strategies to strengthen
management bases 2ATIONALIZATION OF
personnels 3TREAMLINING OF ASSETSTSUKEN management
integration
Reconstruction of Groupbusiness operation
systemReconstruction of Groupbusiness operation system
IT platform constructionof Access-related
construction

FY March 2014
(Fiscal 2013)

FY March 2015
(Fiscal 2014)a
COMSYS WAY— Advance of structural reforms
and top-line growth
IT platform constructionof mobile-related
construction
TSUKEN Groupreorganization

Nationwide movement of
personnel
Operation of construction IT
platform
Promotion of Tokyo Olympic
strategy

8.3%

8.4%

s %STABLISHMENT OF #/-393 INFORMATION SYSTEMs )NTRODUCTION OF #OMSTAR
s 3TANDARDIZATION OF BUSINESS PROCESs reengineering (BPR) and workﬂow

s 2OLL OUT OF $ARWIN MOBILE

Operating Margin

s !MALGAMATION OF 435+%. ACCESS

s 2OLL OUT OF PURCHASING SYSTEM FROM .IPPON #/-393 TO OTHER 'ROUP COMPANIESs 4RANSITION TO NATIONWIDE CONSTRUCTION SYSTEM FOR NETWORK RELATED OPERATIONS
s #LARIlCATION OF ROLES WITH PRIME contractor afﬁliates (dual stratiﬁcation)

7.1%

related subsidiaries

s !MALGAMATION OF MOBILE RELATED SUBSIDIARIESs !MALGAMATION OF #/-393 ACCESS RELATED SUBSIDIARIESs 2OLL OUT OF 5SER 3ITE 3UPPORT 3YSTEM 5333 AND !CCESS

s 0ERSONNEL REDUCTIONS OF  FROM 'ROUP OVERALL

4.9%

Site Support System (ASSS) mobiles &AIR EVALUATION OF SOFTWARE ASSETS

4.3%

s $ISPOSAL OF IDLE ASSETS

4.3%
s /PTIMIZATION OF (OKKAIDO CONSTRUCTION AREA

3.7%

s 2ESTRUCTURING OF MOBILE AND NETWORK BUSINESSES

13

VI-1. Trends in Results of Structural Reforms 3TRUCTURAL REFORM OF 435+%. s (ARNESSING OF )4 (Cost reduction amount)
SG&A expenses
Structural reforms
and improved
productivit
OperatingMarginProduct mix(8.4%)+4s 3TRUCTURAL REFORM OF 435+%. 
s !MALGAMATION OF#/-393 -OBILE #ORPORATION (8.3%)

+12
+3

+28
+17

Operating)MPROVEMENT IN PRODUCTIVITY OF
Income s MOBILE
AND .## BUSINESSES 
s !MALGAMATION OF #/-393 -OBILE#ORPORATION s )MPROVEMENT IN EARNINGS AND
EXPENSES OF #/-393 *OHO 3YSTEM#ORPORATION s )MPROVEMENT IN EARNINGS AND
EXPENSES OF ACCESS RELATEDSUBSIDIARIES (Unit: ¥100 million)(7.1%)

+64

275

290

225
+36

s /PTIMIZATION OF PERSONNEL s 3TREAMLINED OF ASSETS (4.3%)(3.7%)

117
FY March 2011

+21
3TRENGTHEN OF
MANAGEMENTFOUNDATION

+2
+5

125
FY March 2012

FY March 2013

FY March 2014

FY March 2015
Target-20

14

VII. Policy on Shareholder Returns and Status of Treasury Stock(Unit: ¥100 million)

Net Income(Target)200
Net Income
150
100

180

163

50

132

Treasury

80 Stock

30
25

40

March 2011

March 2012

March 2013

March 2014

March 2015 (Planned)

Interim
Dividends per Share(annual)Year-end

¥10

¥10

¥10

¥10

¥15

¥10

¥10

¥10

Consolidated Payout Ratio

27.1%

36.0%

18.7%

18.4%

19.6%

58.3%

77.7%

48.7%

66.9%

—

95

0

30
25

71

29 Dividends

24

35

Dividends¥15 (Planned)
Ordinary dividends: ¥10
Commemorative dividends: ¥5¥15

Total Return Ratio
Dividends + treasury stock
Net income

Use in implementing
management integration
with TSUKEN Corporation
8.35 million shares

Acquisitions of Treasury Stock16.12 million shares
Newly
acquired¥3 billion

Note: Fiscal year-end treasury stock shows
number of shares on consolidated basis.

361

28.31 million shares
23.01 million shares
19.18 million shares
Newly
acquired¥3 billion

352

Newly
acquired¥4 billion

416

Newly
acquired¥8 billion

28.31 million shares

583

15

Results for the Fiscal Year Ended March 31, 2014
— Data Book —May 15, 2014

Contents
Detailed Data
01

Consolidated Statements of Income

02

Statements of Income for Each Company (Results for Fiscal Year Ended March 31, 2014)03

Statements of Income for Each Company (Forecasts for Fiscal Year Ending March 31, 2015)04

Orders Received and Net Sales by Business Area

05

Orders Received by Detailed Business Area for Five Companies
on a Non-Consolidated Simple Sum Basis (Results and Forecasts)

06

Capital Expenditure, Depreciation and Amortization

Reference
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 andbusiness 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 businessdomains, 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 2013

FY March 2014
YoY
2nd Quarter
Percentage
Results
difference(c)((c) – (a))⁄ (a)YoY
Percentage
difference((e) – (b)) ⁄ (b)vs. Forecast
Percentage
difference((e) – (d)) ⁄ (d)

3,279

-2.3%

2.5%

1,650

2.6%

3,490

6.4%

3,250

3,313

4.8%

2.0%

1,490

6.0%

3,450

4.1%

425

457

11.0%

7.7%

220

14.0%

515

12.5%

(13.1%)(13.8%)

-7.0%

185

182

-2.6%

-1.6%

110

26.7%

225

23.6%

56.8%

240

275

22.3%

14.9%

110

3.5%

290

5.2%

(7.4%)(8.3%)

245

280(7.5%)(8.5%)

150

163(4.6%)(4.9%)

Full Year
Targets

Full Year
Results

(d)

(e)

-2.3%

3,200

1,405

6.3%

412

193

19.8%

(12.2%)(13.0%)(13.7%)

Selling, General and Administrative Expenses

93

186

86

Operating Income

67

225

106

(5.1%)(7.1%)(7.6%)

70

229

109

(5.4%)(7.2%)(7.8%)

38

132

61

(2.9%)(4.2%)(4.4%)

2nd Quarter
Results

Full Year
Results(a)(b)

Orders Received

1,644

3,356

1,607

Net Sales

1,322

3,160

Gross Profits

161(Gross Profit Margin)(Operating Margin)
Recurring Profit(Recurring Profit Margin)
Net Income(Net Profit Margin)

FY March 2015

54.8%

61.4%

YoY
2nd Quarter
Percentage
Targets
difference(f)((f) – (c)) ⁄ (c)(14.8%)

14.6%

112

(8.4%)
2.1%(7.5%)
23.4%

9.3%

68
(4.6%)(g)

YoY
Percentage
difference((g) – (e)) ⁄ (e)(14.9%)(7.4%)
22.5%

Full Year
Targets295

5.1%(8.6%)
10.3%

180(5.2%)

Note: Figures are rounded down to the nearest whole unit. Profit margin, and percentages of increase and decrease are calculated using a base unit of yen. Figures are rounded to the nearest first decimal place.

9.8%

02 Statements of Income for Each Company (Results for Fiscal Year Ended March 31, 2014)(Unit: ¥100 million)

Comparisons with the Previous Term

Nippon COMSYS-G

SANCOM-G

TOSYS-G
Percentage Mar. 2013
Results
difference

Mar. 2014
Results

Percentage
difference

-0.5%

425

395

-7.0%

302

9.8%

396

405

2.0%

-2.8%

33.7%

Mar. 2013
Results

Mar. 2014
Results

Percentage
difference

Mar. 2013
Results

Mar. 2014
Results

Percentage
difference

Mar. 2013
Results

Mar. 2014
Results

Orders Received

2,093

2,088

-0.2%

622

574

-7.7%

286

285

Net Sales

1,971

2,048

3.9%

583

616

5.7%

275

8.5%

9.6%

Gross Profits

276

299

(14.0%)(14.6%)

Selling, General and Administrative Expenses

107

103

Operating Income(Operating Margin)

168

196

(8.5%)(9.6%)

Recurring Profit(Recurring Profit Margin)

172

202

(8.7%)(9.9%)

100

129(5.1%)(6.3%)(Gross Profit Margin)

Net Income(Net Profit Margin)

61

67(10.5%)(10.9%)

-4.4%

25

26

16.7%

35

40

(6.1%)(6.6%)

17.6%
28.7%

35

40

(6.1%)(6.6%)

21

23(3.7%)(3.9%)

23

23(8.7%)(7.7%)

2.1%

15

14

15.0%

8

9

(3.2%)(3.1%)

14.1%
10.0%

TSUKEN-G

89(3.2%)(3.1%)

40(1.8%)(0.2%)

36

49(9.3%)(12.2%)

-8.1%

30

29

-1.8%

6.6%

6

19

191.4%(1.7%)(4.9%)

720(2.0%)(5.0%)

5.6%

56(1.3%)(1.6%)-87.9%

161.7%
27.6%(Unit: ¥100 million)

Comparisons with Forecasts

Nippon COMSYS-G

SANCOM-G

Mar. 2014
Targets

Mar. 2014
Results

Percentage
difference

Mar. 2014
Targets

Orders Received

1,965

2,088

6.3%

600

574

Net Sales

1,980

2,048

3.4%

605

Gross Profits

281

299

6.6%

(14.2%)(14.6%)

Selling, General and Administrative Expenses

106

103

Operating Income(Operating Margin)

175

196

(8.8%)(9.6%)(Gross Profit Margin)

TOSYS-GMar. 2014 Percentage
difference
Results

TSUKEN-G
Percentage Mar. 2014
difference
Targets

Mar. 2014
Results

Percentage
difference

5.6%

386

395

2.5%

302

8.1%

405

405

0.0%

24

23

-4.2%

39

49

26.4%

(8.7%)(7.7%)(9.6%)(12.2%)

-0.9%

15

14

-6.6%

30

29

-1.5%

8.9%

9

9

-0.4%

9

19

119.4%(3.3%)(3.1%)(2.2%)(4.9%)

Mar. 2014
Targets

Mar. 2014
Results

-4.3%

270

285

616

1.9%

280

64

67

4.9%

(10.6%)(10.9%)

-2.7%

26

26

12.3%

37

40

(6.2%)(6.6%)

Notes: 1. Figures are rounded down to the nearest whole unit. Percentages of increase and decrease are calculated using a base unit of yen. Figures are rounded to the nearest first decimal place.
Notes: 2. No elimination of intergroup transactions between groups

03 Statements of Income for Each Company (Forecasts for Fiscal Year Ending March 31, 2015)(Unit: ¥100 million)

Forecasts for the full year

Nippon COMSYS-G

SANCOM-G

TOSYS-GMar. 2015
Targets

Percentage
difference

-5.3%

395

390

-1.4%

274

-9.4%

405

400

-1.2%

2.3%

-4.7%

Mar. 2015
Targets

Percentage
difference

Mar. 2014
Results

Mar. 2015
Targets

Percentage
difference

Mar. 2014
Results

Mar. 2015
Targets

Orders Received

2,088

2,275

8.9%

574

600

4.5%

285

270

Net Sales

2,048

2,230

8.9%

616

594

-3.6%

302

19.5%

0.1%

Gross Profits

299

358

(14.6%)(16.1%)

Selling, General and Administrative Expenses

103

145

Operating Income

196

213

(9.6%)(9.6%)(Gross Profit Margin)(Operating Margin)

67

67(10.9%)(11.3%)

40.6%

26

26

8.4%

40

41

(6.6%)(6.9%)TSUKEN-G
Percentage Mar. 2014
difference
Results

Mar. 2014
Results

23

23(7.7%)(8.7%)

-0.3%

14

13

0.4%

9

10

(3.1%)(3.6%)

Note: Figures are rounded down to the nearest whole unit. Profit margin is calculated using a base unit of yen. Figures are rounded to the nearest first decimal place.

49

47(12.2%)(11.8%)

-1.5%

29

26

-10.4%

7.9%

19

20

3.8%

(4.9%)(5.1%)

04 Orders Received and Net Sales by Business Area (COMSYS.HD Consolidated)(Unit: ¥100 million)

Orders Received

FY March 2013

FY March 2014
YoY
2nd Quarter
Percentage
Results
difference(c)((c) – (a))⁄ (a)YoY
Percentage
difference((e) – (b)) ⁄ (b)vs. Forecast
Percentage
difference((e) – (d)) ⁄ (d)

1,929

-3.2%

7.5%

860

400

391

-16.5%

-2.1%

12.1%

520

528

4.7%

206

24.1%

485

430

1,607

-2.3%

3,200

3,279

2nd Quarter
Results

Full Year
Results(a)(b)

NTT Engineering

974

1,993

931

NCC Engineering

247

468

IT Solutions

255

Social System-Related and Other
Total

Business Area

FY March 2015

Full Year
Targets

Full Year
Results

(d)

(e)

-4.4%

1,795

182

-26.3%

504

286

166

388

1,644

3,356

YoY
2nd Quarter
Percentage
Targets
difference(f)((f) – (c)) ⁄ (c)

(g)

YoY
Percentage
difference((g) – (e)) ⁄ (e)

-7.7%

1,810

-6.2%

165

-9.7%

370

-5.5%

1.7%

280

-2.3%

565

6.8%

10.7%

-11.3%

345

66.8%

745

73.1%

-2.3%

2.5%

1,650

2.6%

3,490

6.4%

Full Year
Targets(Unit: ¥100 million)

Net Sales

FY March 2013

FY March 2014
YoY
Percentage
difference((e) – (b)) ⁄ (b)vs. Forecast
Percentage
difference((e) – (d)) ⁄ (d)

1,938

1.5%

2.0%

835

430

447

9.2%

4.0%

4.8%

495

524

7.1%

149

12.9%

425

403

1,405

6.3%

3,250

3,313

YoY
2nd Quarter
Percentage
Results
difference(c)((c) – (a))⁄ (a)Full Year
Targets

Full Year
Results

(d)

(e)

1.0%

1,900

198

32.7%

489

204

132

352

1,322

3,160

2nd Quarter
Results

Full Year
Results(a)(b)

NTT Engineering

844

1,909

853

NCC Engineering

149

409

IT Solutions

195

Social System-Related and Other
Total

Business Area

FY March 2015

(g)

YoY
Percentage
difference((g) – (e)) ⁄ (e)

-2.1%

1,840

-5.1%

160

-19.3%

380-15.0%

5.9%

230

12.3%

555

5.9%

14.3%

-5.1%

265

77.3%

675

67.4%

4.8%

2.0%

1,490

6.0%

3,450

4.1%

YoY
2nd Quarter
Percentage
Targets
difference(f)((f) – (c)) ⁄ (c)Note: Figures are rounded down to the nearest whole unit. Percentages of increase and decrease are calculated using a base unit of yen. Figures are rounded to the nearest first decimal place.

Full Year
Targets

Received by Detailed Business Area for
05 OrdersFive Companies on a Non-Consolidated Simple Sum Basis (Results and Forecasts)(Unit: ¥100 million)

FY March 2013

FY March 2014
YoY
Percentage
difference((e) – (b)) ⁄ (b)vs. Forecast
Percentage
difference((e) – (d)) ⁄ (d)930-12.4%-1.8%

430-10.1%

899

-3.4%

221

248

9.9%

12.4%

85

-27.1%

191-23.1%

-6.5%

589

712

6.6%

20.9%

323

1.7%

690

-3.1%

912

-5.2%

1,757

1,890

-3.3%

7.6%

838

-8.2%

1,780

-5.9%

470

183

-26.6%

402

395-15.9%

-1.6%

166

-9.6%

370

-6.4%

205

401

231

12.6%

413

421

5.1%

2.2%

223

-3.5%

444

5.2%

84

223

127

51.5%

319

266

19.0%

-16.5%

181

42.1%

409

53.5%

1,501

3,051

1,454

-3.1%

2,891

2,974

-2.5%

2.9%

1,408

-3.2%

3,003

1.0%

YoY
2nd Quarter
Percentage
Results
difference(c)((c) – (a))⁄ (a)2nd Quarter
Results

Full Year
Results

Full Year
Targets

Full Year
Results

(a)

(b)

(d)

(e)

Access

516

1,061

478

-7.4%

947

Network

105

225

116

10.1%

Mobile

339

668

317

962

1,955

NCC Engineering

250

IT Solutions
Social System-Related and Other

Business Area

NTT Engineering

Subtotal

Total

FY March 2015
YoY
2nd Quarter
Percentage
Targets
difference(f)((f) – (c)) ⁄ (c)Full Year
Targets(g)

Notes: 1. The non-consolidated simple sum data are for the following five companies: Nippon COMSYS Corporation; SANWA COMSYS Engineering Corporation; TOSYS Corporation; TSUKEN Corporation;
and COMSYS JOHO SYSTEM Corporation.
2. Figures are rounded down to the nearest whole unit. Percentages of increase and decrease are calculated using a base unit of yen. Figures are rounded to the nearest first decimal place.

YoY
Percentage
difference((g) – (e)) ⁄ (e)06 Capital Expenditure, Depreciation and Amortization(Unit: ¥100 million)

March 2013

March 2014

Results

Results

March 2015
Comparisons with the previous term
Percentage
Difference
difference

Targets

Comparisons with FY March 2014
Percentage
Difference
difference

Tangible Assets

68

68

0

0.3%

34

-34

-50.0%

Intangible Assets

15

13

-1

-12.1%

14

1

7.7%

Total

83

82

-1

-1.9%

48

-34

-41.5%

Depreciation and Amortization

44

44

-0

-1.3%

48

4

9.1%

Capital Expenditure

Note: Figures are rounded down to the nearest whole unit. Percentages of increase and decrease are calculated using a base unit of yen. Figures are rounded to the nearest first decimal place.

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

+99

2,505

2,406

(Unit: ¥100 million)+99

Current
Liabilities(+69)
s #ASH AND CASH EQUIVALENTS

+73

592

s !CCOUNTS RECEIVABLETRADE+10

Long-Term
Liabilities

s !CCUMULATED COST OF CONSTRUCTION
IN PROGRESS AND OTHERS

Current Assets

s /THER CURRENT ASSETS

-9

1,564

2,505

2,406
(+44)
s )NCOME TAXES PAYABLE+38

s /THER CURRENT LIABILITIES

+6

(-5)

79

637
74
79

-5

1,495
(+60)
s .ET INCOME

Net Assets

1,734
(+30)

Fixed Assets

910

s &IXED ASSETS SUCH AS LAND

+29s )NVESTMENTS AND OTHER ASSETS+8s )NTANGIBLE ASSETS-7

As of March 31, 2013+163

s 4REASURY STOCK AT COST

-74

s #ASH DIVIDENDS-24

s /THER-5

1,794%QUITY RATIO&ROM  TO 

940

As of March 31, 2014

As of March 31, 2013

As of March 31, 2014

08 Consolidated Cash Flow (Condensed)(Unit: ¥100 million)
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

+241

-62

-105

s )NCOME BEFORE INCOME TAXESAND OTHER ADJUSTMENTS
TO NET INCOMEs )NCREASE IN RECEIVABLESTRADE
s $ECREASE IN INVENTORIESs /THER

+270
-14
+17
-32

s !CQUISITIONS OF PROPERTY AND EQUIPMENT -52-12s !CQUISITIONS OF OTHER ASSETS+2
s /THER

234

s !CQUISITIONS OF TREASURY STOCKs #ASH DIVIDENDS PAID
s /THER

-80
-24
-1

309

+74
Cash and
Cash Equivalents
at End of Year

Cash and
Cash Equivalents
at End of Year(As of March 31, 2013)(As of March 31, 2014)

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 suchforward-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’sbusiness areas, 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: http://www.comsys-hd.co.jp/