Presentation of Performance
Fiscal Year Ended March 31, 2018

May 11, 2018

Contents
I . Overview of Performance for the Fiscal Year Ended March 31, 2018
1. Highlights of Performance for the Fiscal Year Ended March 31, 2018
2. Details of Orders Received by Segment
3. Details of Net Sales by Segment
4. Details of Operating Income
5. Contract Backlogs
II . Business Plan for the Fiscal Year Ending March 31, 2019
1. Business Plan for the Fiscal Year Ending March 31, 2019
2. Forecasts of Orders Received by Segment
3. Forecasts of Sales by Segment
4. Trends in NTT Fixed-Line Related Business5. Trends in NTT Mobile Business6. Trends in NCC Engineering Business7. Trends in IT Solutions Business
8. Trends in Social System-Related and Other BusinessIII . Medium- and Long-Term Growth Strategy
1. Progress of COMSYS VISION 2020
2. IT Business Company Growth Targets
3. Social System Business Company Growth Targets
4. Business Expansion through M&A
5. Measures to Improve Productivity by Centralizing Operations
6. Profit Improvement Results Following Management Integration
7. Management Integration with Three Telecommunications Construction Companies in Western Japan
IV . Shareholder Returns Policy
1. Shareholder Returns Policy (Dividends and Acquisition of Treasury Stock)

4
5
6
7
8
10
11
12
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14
15
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19
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22
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24
25
27

I. Overview of Performance
For the Fiscal Year Ended March 31, 2018

I-1. Highlights of Performance for the Fiscal Year Ended March 31, 2018
All-time highs recorded for orders received, net sales, and operating profit• Orders received surpassed the ¥400.0 billion mark for the ﬁrst time as the Social Systems-Related and Other
business remained strong• Net sales achieved forecasts backed by extensive contract backlogs, recording all-time high net sales• Marked an all-time high proﬁt for the ﬁrst time in three years, with proﬁt rising above the ¥30.0 billion level astargeted in the mid-term plan

(Unit: ¥100 million)

Performance

Comparisons withthe previous term

Comparisonswith forecasts

Orders Received

4,022

+320

+122

Net Sales

3,800

+458

+0

Operating Income

303

+53

+18

Operating Margin

8.0%+0.5 percentage points+0.5 percentage points

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.

4I-2. Details of Orders Received by Segment
The Social System-Related and Other business advanced rapidly, including the effect of M&As.
• NTT Engineering business: despite a signiﬁcant year-on-year decline in reaction to special demand, orders received werehigher than forecast due to MB orders received ahead of schedule• NCC Engineering business: orders received rose due to au base station construction and TV reception improvement projects• IT Solutions business: although corporate solution business fell short of forecasts, total orders received increased year on
year due to alliance business and software development• Social System-Related and Other business: orders received increased as a result of the consolidation of Kando Co., Ltd. andthe acquisition of large-scale construction projects(Unit: ¥100 million)

Performance

Comparisons withthe previous term

Comparisonswith forecasts

NTT Engineering

1,845

-190

+45

NCC Engineering

392

+107

+82

IT Solutions

604

+51

-15

Social SystemRelated and Other

1,180

+351

+10
5

I-3. Details of Net Sales by Segment
The Group steadily completed a large volume of construction projects and achieved its forecasts.
• NTT Engineering business: sales increased due to favorable progress of MB projects, offsetting decline in sales due toreduction in AC maintenance processes• NCC Engineering business: recorded substantial sales growth due to strong orders received• IT Solutions business: although corporate solution business fell short of forecasts, total sales increased year on year due tosoftware development• Social System-Related and Other business: recorded substantial sales growth due to the consolidation of Kando Co., Ltd. but
fell short of forecasts due to delays in solar construction business, etc.

(Unit: ¥100 million)

Performance

Comparisons withthe previous term

Comparisonswith forecasts

NTT Engineering

1,859

+14

+14

NCC Engineering

357

+83

+62

IT Solutions

590

+40

-9

Social SystemRelated and Other

992

+321

-67
6

I-4. Details of Operating Income
Operating income was up significantly, with an increase in productivity
due to the high volume of construction projects.
• Standardization of quarterly workload volume of construction projects progressed and productivity
increased due to high level of contract backlogs• Effect of measures such as work-style innovation contributed to proﬁt growth• SG&A expenses reduced through cuts in personnel expenses and ofﬁce expenses at Ecosystem Japan(Unit: ¥100 million)
Effect ofmeasures
Net sales growth
taken
Productivity
improvements
+6

+36

250

Performance in Previous Term

Kando

+7

SG&A
expensereduction

SG&A
expensereduction-3-4• Workflow standardization• and centralization of operations• Work-style innovation• Harnessing of IT• Flexible personnel movement• within GroupNet sales growth
Productivity
Kando improvements

+2

303

285

+53

+18

(+21.2%)(+6.5%)

Performance+11

Target7

I-5. Contract Backlogs
The contract backlog increased further due to a growth of orders received
in the Social System-Related and Other business.
• The contract backlog increased signiﬁcantly due to last-minute solar construction projects (EPC) and neworders received for private-sector DC projects• Orders received from au grew, and the NCC Engineering business increased signiﬁcantly• The contract backlog in the NTT-MB business increased further as orders scheduled to be received nextﬁscal year were brought forward

1,595(Unit: ¥100 million)

1,373

+222

625
+360

931
157
100
117

981
898
184
105
61

319
119
42

1,013

437

SocialSystem-Relatedand Other *

+31

280

136
50

150
85

IT
NCC

749

734

NTT

FY March 2018
Beginning of Term

FY March 2019
Beginning of Term

133
39

556

546

500

558

FY March 2014
Beginning of Term

FY March 2015
Beginning of Term

FY March 2016
Beginning of Term

FY March 2017
Beginning of Term

*Kando Co., Ltd., which joined the Group in the fiscal year ended March 31, 2018, has no contract backlog because orders received and net sales are the same amount.

8II. Business Plan
For the Fiscal Year Ending March 31, 2019

II-1. Business Plan for the Fiscal Year Ending March 31, 2019
Planning on sales and profit growth due to high volume of contract backlog• Orders received will remain at ¥400.0 billion, despite falling below previous ﬁscal year’s level• Aiming to achieve the mid-term target thanks to extensive contract backlogs• Operating income is projected to rise for the third ﬁscal year in a row and record an all-time high(Unit: ¥100 million)

FY March 2018
Performance

FY March 2019
Targets

Comparisons withFY March 2018

Orders Received

4,022

4,000

-22

Net Sales

3,800

4,000

+199

Operating Income

303

320

+16

Operating Margin

8.0%

8.0%

0.0 percentage points

10II-2. Forecasts of Orders Received by Segment
Planning an increase in orders received in growth segments• NTT Engineering business: forecasting a decrease due to impact of MB orders received brought forward inﬁscal year ended March 31, 2018
• NCC Engineering business: forecasting a decrease due to decline in TV reception improvement projects• IT Solutions/Social System-Related and Others businesses: planning increase with growth in orders received
forecast due to effect of new consolidation and business company system(Unit: ¥100 million)

FY March 2018
Performance

FY March 2019
Targets

Comparisons withFY March 2018

NTT Engineering

1,845

1,755

-90

NCC Engineering

392

380

-12

IT Solutions

604

640

+35

Social SystemRelated and Other

1,180

1,225

+44
11

II-3. Forecasts of Sales by Segment
Forecasting sales growth due to effect of new consolidation, etc.
• NTT Engineering business: forecasting decline in sales, factoring in reduced capital expenditure at NTT Group• NCC Engineering business: forecasting decline in sales with anticipated decrease in TV reception
improvement projects• IT Solutions business: Forecasting sales growth due to new consolidation of VACSLAB• Social System-Related and Others business: forecasting sales growth due to recovery in solar construction
projects completion delays and full-year consolidation of Kando(Unit: ¥100 million)

FY March 2018
Performance

FY March 2019
Targets

Comparisons withFY March 2018

NTT Engineering

1,859

1,830

-29

NCC Engineering

357

350

-7

IT Solutions

590

600

+9

Social SystemRelated and Other

992

1,220

+227
12

II-4. Trends in NTT Fixed-Line Related Business
Expecting greater demand for optical fiber line construction
due to increased investment in conversion to optical fiber• Construction repair orders will decrease due to the end of the NTT Group’s ﬁnancial burden mitigation effects
based on the past change in its depreciation method, and signiﬁcant reduction is anticipated• Expecting an increase in FLET’S Hikari due to migration from ADSL and ISDN service• Striving to obtain orders for construction projects for the Tokyo Olympics
FY March 2019
TargetYoY

Orders Received

1,175

-19

Net Sales

1,200

-17

(Unit: ¥100 million)

NTT East and NTT West capex

No. of FLET’S Subscriptions (including optical fiber collaboration)
Note: Number of subscriptions is cumulative (Unit: 10,000 lines)
and includes Hikari Collaboration.

(Unit: ¥100 million)

5,479
NTT EAST 2,738
Investment infiber optics
1,560

NTT WEST 2,741

5,100

5,000

2,500

2,500

Investment infiber optics
1,530

2,600

NTT Engineering business–Access and Network
Simple total for five companies*

NTT EAST

2,005

2,051

2,111

1,117

1,147

1,187

2,500

888

Optical fiber
collaboration

904

341

FY March 2017
Results

FY March 2018
Forecast

FY March 2019
TargetFY March 2017
Results

768

663

532

NTT WEST

Optical fiber
collaboration

Optical fiber
collaboration

Optical fiber
collaboration

Investment infiber optics
1,610

Optical fiber
collaboration

924

Optical fiber
collaboration

458

FY March 2018
Forecast

553

FY March 2019
Target[Source: NTT Financial Results Briefing Materials, NTT Business Operation Plan for the Fiscal Year Ending March 31, 2019]*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.

13

II-5. Trends in NTT Mobile BusinessHigh project volume of full-scale construction of 3.5GHz band base stations now proceeding• NTT DODOMO capital investment will decline slightly year on year
• Reinforcing construction business structure as projects forecast to be focused on Tokyo metropolitan area
• Orders for 3.4GHz band and 5G projects expected to be issued from second half of fiscal year ending
March 31, 2019
FY March 2019
TargetYoY

Orders Received

565

-73

Net Sales

600

-32

(Unit: ¥100 million)

Trends in Main Process Volumes (forecasts by COMSYS)

5,762(IFRS)

5,779

5,700

5,472

5,380

Ṵ

Communications
business(IFRS)*

Tokyo Olympics
and Paralympics

Mar. 2018 Mar. 2019 Mar. 2020 Mar. 2021 Mar. 2022 Mar. 2023

5th
generation(5G)

3.5GHzLTE
Otherthan above

Allocationof frequencies
for 5GṴ

Allocationof additionalfrequencies for 4G(Unit: ¥100 million)Ṵ

NTT DOCOMO capex

5,971

NTT Engineering business–Mobile
Simple total for five companies

209

307

320

FY March 2017
Results

FY March 2018
Results

FY March 2019
Target

LTE-A

800MHz
1.5GHz
1.7GHz2GHz

700MHz

3.4GHzCA[Source: Source: NTT DOCOMO Results Briefing Materials]*NTT DOCOMO applied IFRS in the first quarter of the fiscal year ending March 31, 2019 replacing the previous U.S. GAAP.

14

II-6. Trends in NCC Engineering Business
Aiming to increase au and Softbank project participation• Despite expansion in areas of TV reception improvement projects, the number of projects that COMSYS
engages in is expected to decline• au and Softbank base station construction project volume forecast to be at high level, continuing on from last year
• Aim to secure orders for full-scale facility construction from 2019 in view of market entry by Rakuten
FY March 2019
TargetYoY

Orders Received

380

-12

Net Sales

350-7(Unit: ¥100 million)

NCC Engineering business consolidated

Softbank Capex (Telecommunications business in Japan)

KDDI Capex (payment)(Unit: ¥100 million)

5,194

5,300

(Unit: ¥100 million)

5,300

Mobile(Includes UQ)

3,250

3,300

3,300

Fixed line,
etc.

1,943

2,000

2,000

FY March 2017
Results

FY March 2018
Forecast by COMSYSFY March 2019
Forecast by COMSYS[Source: KDDI Results Briefing Materials]

3,703

3,700

FY March 2018
Results

FY March 2019
Forecast by COMSYS

3,205

FY March 2017
Results[Source: Source: Softbank Group Results Briefing Materials]

15II-7. Trends in IT Solutions Business
Strengthening alliances and focusing on sectors with expanding markets• Focusing on growth sectors such as cloud computing and teleworking by strengthening alliances• Seeking to create new businesses utilizing AI
FY March 2019
TargetYoY

Orders Received

640

+35

Net Sales

600+9(Unit: ¥100 million)

40,000¥3.0 billion
IT Solutions business consolidated

Categories to Focus on in Each Sector

Forecast Trend in ICT-Related Market Size
(Unit: ¥100 million)

Portion of increasein orders received
due to businesscompany system effects

Trend in Japanese cloud market size
Private cloudPublic cloudSI• Cloud (Office365)• IoT-related (camera and device-related)NI• Olympics-related infrastructure construction• Disaster prevention and earthquake• countermeasures-related network construction

20,0000
FY 2017

FY 2018

FY 2019

FY 2020

FY 2021[ Source: MM Research Institute, Ltd. ]Impact (market size) of IoT and AI on economic growth up to 2030
(Unit: ¥ trillion)
1,300

1,070

1,129

1,180

1,224

2016

2020

2025

2030

Software• Monitoring and maintenance• Creation of new businesses related to AI

1,000[Source: WHITE PAPER Information and Communications in Japan, 2017]16

II-8. Trends in Social System-Related and Other BusinessWorking to expand solar construction business and orders received for other renewable energy projects• Aiming to obtain orders received for EPC projects utilizing COMSYS know-how for biomass power generation business• Aiming to expand orders received for projects dealing with countermeasures for aging plant electrical facilities,
expressways, etc.
• Actively engage in plans by local governments all over Japan to introduce undergrounding of electric wires
through PFIFY March 2019
TargetYoY

Orders Received

1,225

+44

Net Sales

1,220

+227

(Unit: ¥100 million)• Water treatment plant electricity• Expressway aging countermeasures• Private-sector data centers(Unit: ¥100 million)
Expand business areas
leveraging track record on
Metropolitan Expressway• Water supply and sewerage
Planning to receive orders for
Civil
of Land, Infrastruc• Civil engineering for agricultural water Ministryture, Transport and Tourism
Engineering• Undergrounding of electrical wiring
PFI pilot projects

Renewable
Energy¥1.2 billion
ISocial System-Related and Other business consolidated

Trends in orders received for renewable energy business

Focus Areas in Each Sector
Electrical
Facilities

Portion of increasein orders received
due to businesscompany system effects• Self-contained solar power (carport, floating, agricultural-type)• Hybrid system business (wind power and solar power)• Operation and maintenance (O&M)• Small-scale wind power• Biomass power

Solar
construction

Promoteordersreceived

221

170

Biomass power generation market will
expand sharply with an annual average
17.1% growth rate, increasing
approximately 1.9 fold by 2020

Other
Renewable
EnergyFY March 2018

In the solar construction business,
aim to secure more orders bycultivating new customers andproviding diverse kinds of installation

FY March 2019
Target17

III. Medium- and Long-Term Growth Strategy

III-1. Progress of COMSYS VISION 2020
Aiming to achieve net sales and operating income targets one year early• Achieve ¥400.0 billion in net sales through growth strategy of IT solution business and Social System-Related
and Other businesses• Achieved operating income target in ﬁscal year ended March 31, 2018 and plan further proﬁt growth
Move
Forward Mid-Term Targets

Operating Income(Operating Margin)

275

276

238

250

303

320

300

(8.3%)(8.4%)(7.4%)(7.5%)(8.0%)(8.0%)(7.5%)

4,000

4,000

3,800

Net sales

3,313

3,286

3,206

679

3,341

+679

M&A
GrowthSectors

927

1,141
+213

Telecommunications
Carriers
2,386

2,180
-206
Change from
FY ended March 31, 2014

(Unit: ¥100 million)

FY March 2014

FY March 2015

Mid-Term Targets Launched COMSYS WAY a

FY March 2016

FY March 2017

FY March 2018

FY March 2019
TargetCOMSYS VISION 2010

FY March 202019

III-2. IT Business Company Growth Targets
Focusing on strengthening alliances and market expansion• Focusing on high growth rate alliance market• Taking on development of new software, including AI and RPA• Venturing into new business sectors, such as IoT-related activities in the corporate solution business
Growth Rate in Orders Received by Target

Profitability

Corporate Solutions Sector (1)FY Mar.
Ma 2019

r. 20
Mar.
20188
Mar. 201717 Mar
Up 7%

Up 3%

(Public sector, education,and nationwide rollout)

Mar. 2018

IT Solutions Business
Trend in Orders Received¥55.3
billionFY Mar. 2019

¥64.0
billion

Maintenance BusinessMar. 2019(Target)(Cloud computing, IT infrastructure,and data centers)(see above)

FY Mar. 2019
Mar. 2017 Mar. 2018
Mar. 2018

Mar. 2018 Up 16%
Mar. 2017 Up 12%
Alliance Sector

Up 5%
Mar.2017

FY Mar. 2019

Up 13%

Up 1%

¥60.4
billion(AI and RPA)

Corporate Solutions Sector (2)(IoT and security)

Mar. 2017

Software Sector

Up 15%FY Mar. 2019
Mar. 2018

Up 10%

Mar. 2017 Up 29%
Growth20

III-3. Social System Business Company Growth Targets
Focusing on maximizing and optimizing business by strengthening Group collaboration• Focusing on expanding existing business and plant electrical facilities projects in telecommunications sector• Expanding underground infrastructure construction sector, including undergrounding of electrical wiring (PFIbased) and water supply and sewerage• Expanding renewable energy sector centered on solar construction and wood biomass power generation
Growth Rate in Orders Received by Target

Profitability

Telecommunications sector(Expressways, plant electrical facilities,
and reconstruction of government buildings)

Mar. 2018
Mar. 2017

FY Mar. 2019

Renewable Energy Sector(Solar power, biomass power, and wind power)

Mar. 2018 FY Mar. 2019
Mar. 2017
Down 11%Up 39%Up 24.5%

Up 0.3%Social System-Related and Others
Trend in Orders Received¥82.8
billion¥118.0billionFY Mar. 2019¥122.5billionMar. 2018
Infrastructure and Other Sectors Mar. 2017

Mar.2017

Mar. 2018

Mar. 2019(Target)(Undergrounding of electrical wiring,water supply and sewerage, and agricultural engineering)Up 21%Up 57%

Growth21

III-4. Business Expansion through M&A
Expecting ¥60.0 billion contribution to net sales, with the consolidation of Kando Co., Ltd.
• Inclusion of Kando in the consolidated results will make full-year contribution in ﬁscal year ending
March 31, 2019 with ¥8.0 billion net sales growth• Promoting further M&As with aim of strengthening construction lineup and securing engineers, etc.

60

600

40

400

200

0

.DQGR

20

Net Sales
Operating
Income0

Fiscal YearFY March 2015

FY March 2016

FY March 2017

FY March 2018

FY March 2019
(Target)M&A Results

Ecosystem JapanCENTRAL BUILDING SERVICE
Kawanakajima Kensetsu

Hokkaido Denden Yuso
Toa Kenzai Kogyo

VACSLABTOKYO HOSOH KOGYO

Kando

—

Operating Income (¥100 millon)

Net Sales (¥100 millon).DQGR

Future Targets
System integration and softwaredevelopment
Air conditioning construction andgeneral construction industry*Performance figure is the simple sum of each company and excludes goodwill and share acquisition expenses, etc.
*Kando was consolidated from the second quarter of the fiscal year ended March 31, 2018, so the first quarter’s figures were not included in the Group’s performance for the fiscal year ended March 31, 2018.

22

III-5. Measures to Improve Productivity by Centralizing Operations
Aiming for integrated COMSYS Group operations in access-related business• Reducing costs by consolidating ofﬁces• Strengthening prime contractor operations through integrated consolidated subsidiary operation
by implementing resource shifting• Optimal positioning and systemization of consolidated operation centers for COMSYS Group

Standardization of workflow

Centralize area-free operations
Consolidated operation centerfor starting communication service

Toward optimization of
COMSYS Group

Consolidated operation center for metallic line
construction and post-construction process management

Activationof personnel
exchange

Quality inspection center (photo inspection)

Image of Operations Centralization
Step 1

Operational consolidation for Greater Tokyo area
Category

Step 2(Nippon COMSYS)

Service integration construction
User
construction AC construction

Generalconstruction

Consolidation of East Japan operations

Completion
processing

Consolidated operation center
for metallic line construction
and post-construction
process management

Photoinspection East Japan and West Japan Quality Inspection Center(COMSYS Group)

Consolidation of operations within Grouptsu
Hirabayashi

Construction

Consolidated
operation centerfor starting
communication
service

Consolidation of West Japan operations

ine

Sh

Construction officemanagementᵖᵖӸίᵏᵕᵌᵓήὸỉʴՃЪถửܱྵ
DesignStep 3(Nippon COMSYS)TSUKEN(Sapporo)

Hiroshima

Utsunomiya

Fukuoka
Toda
Hachioji
Sagamihara

TOSYS(Matoba)

Koshigaya
Ueno
Southern Tokyo
Tokyo start of service
operations consolidated center

Itano
COMSYS

Nishihara

Operation integrated by business type23

III-6. Profit Improvement Results Following Management Integration
Steadily improving rate of profit through structural reform• Improving proﬁts by sharing management resources within the Group• Promoting streamlining through centralization of operations• Going forward, continuing to strive for structural reform and working to improve margins
Successful process improvement examples as a result of management integration with TSUKEN
Business selection and concentrationand elimination of duplicated operations

Sharing of systems

Other integration effects• Merger and reorganization of consolidated subsidiaries• Sharing of core systems• Integration and consolidation of offices• Consolidation of NTT-AC business in Hokkaido area at TSUKEN Group• Sharing of construction-related IT systems• Centralized purchasing• Consolidation of NTT-NW business in Hokkaido area at Nippon COMSYS Group • Sharing of HR and payroll systems• CMS• Centralization of common operations• Groupware

TSUKEN Financial Performance Trends
600
500Management integration(October)

430

480
404

390

405

407

300
Impact ofearthquake

200
100
0

(Unit: ¥100 million)

4.9%

5.5%

440

5.6%

467

487

8.0%

5.6%

5.7%

4.0%
2.0%

3.3%
2.4%

10.0%

1.7%

1.7%

0.0%

Mar. 2010 Mar. 2011 Mar. 2012 Mar. 2013 Mar. 2014 Mar. 2015 Mar. 2016 Mar. 2017 Mar. 2018
Net Sales

Operating Margin24

III-7. Management Integration with Three Telecommunications
Construction Companies in Western Japan
Announcing management integration with three companies through share exchange• Expanding COMSYS Group net sales to ¥500.0 billion and operating proﬁt to ¥35.0 billion• Business consolidation of subsidiaries scheduled for October 1, 2018
• Aiming to strengthen market competitiveness and expand management base by restructuring highproductivity construction system

Company NameNDS Co., Ltd.

SYSKEN Corporation(Securities code: 1956, First Section of Tokyo Stock Exchange
and First Section of Nagoya Stock Exchange)

Hokuriku Denwa Kouji Co., Ltd.

(Securities code: 1933, Second Section of Tokyo Stock Exchange, (Securities code: 1989, Second Section of Tokyo Stock Exchange)
Fukuoka Stock Exchange)

Location

Nagoya, Aichi

Kumamoto, Kumamoto

Kanazawa, Ishikawa

Representative

Satoshi Tamamura

Hidenori Fukumoto

Yasuo Mori

Paid in Capital¥5,676 million¥801 million¥611 million

Date of Establishment

May 1954

September 1954

November 1949

Number of Employees

2,787 (Consolidated)

888 (Consolidated)

669 (Consolidated)

Consolidated Subsidiaries

23 companies

5 companies

4 companies

Main Business

Consolidated Results(¥ billion)
Net Sales• Multidiscipline engineering business• ICT solution business• Housing and real estate business

FY March 2018
Results

78.0• Information and communications• construction business• Infrastructure construction business• Other

FY March 2019
Target80.0

FY March 2018
Results

28.0• Telecommunications construction business• Information systems business

FY March 2019
Target29.1

FY March 2018
Results

13.4

FY March 2019
Target13.1

Operating Income

3.67

3.20

0.89

0.79

0.23

0.18

(Operating Margin)(4.7%)(4.0%)(3.2%)(2.7%)(1.7%)(1.4%)Net Assets

43.4

—

12.3

—

5.8

—

*Performance figures for the fiscal year ending March 31, 2019 are forecasted figures announced by each company on May 8, 2018.

25

IV. Shareholder Returns Policy

IV. Shareholder Returns Policy (Dividends and Acquisition of Treasury Stock)
Planning to achieve dividend payout ratio of 30% or higher
through ¥10 increase in dividend
Net Income(Unit: ¥100 million)(Target)

[167]

80

203 80210

Treasury

50 stock80

167 75154 80

29

35

39

44

58

March 2014

March 2015

March 2016

March 2017

March 2018

March 2019
(Planned)

Interim

¥10

¥15

¥15

¥20

¥25

¥30

Year-end

Ordinary dividends: ¥10+
Commemorative dividends: ¥5

¥15

¥20

¥20

¥25

¥30

Consolidated Payout Ratio

18.4%

21.0%

25.6%

30.8%
[ 26.6% ]*

28.0%

32.7%

Total Return Ratio
Dividends + treasury stock
Net income

66.9%

66.2%

77.2%

85.6%
[ 74.0% ]*

67.5%

56.6%

Number of sharesof treasury stockat the end of the period*

28.31
million shares

31.41
million shares

30.24
million shares

31.86
million shares

26.42
million shares—(Ownership Ratio)(19.4%)(21.5%)(21.5%)(22.6%)(18.7%)

ROE

9.4%

9.0%

7.9%

7.3%
[ 8.3% ]*

9.4%

163

Dividends per
Share(annual)144

acquisition

68 Total
dividends¥15—*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 stock on November 30, 2015.
Shares of treasury stock decreased by 7.92 million shares (5.6%) as a result of the share exchange with Kando Co., Ltd. on July 1, 2017.
*Figures in parentheses are estimates assuming no impairment loss on goodwill.

27

Data Book
Detailed Data
01

Consolidated Statements of Income

02

Income Statements [by operating company group] (results for fiscal year ended March 31, 2018)03

Income Statements [by operating company group] (forecasts for fiscal year ending March 31, 2019)04

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

05

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

06

Capital Expenditure, Depreciation and Amortization

Reference
07

Consolidated Balance Sheets (Condensed)

08

Consolidated Cash Flow (Condensed)

01 Consolidated Statements of Income(Unit: ¥100 million)

FY March 2017

FY March 2018
YoY
2nd Quarter
Percentage
Results
difference(c)((c) – (a))⁄ (a)YoY
Percentage
difference((e) – (b)) ⁄ (b)vs. Forecast
Percentage
difference((e) – (d)) ⁄ (d)

4,022

8.7%

3.1%

1,810

3,800

3,800

13.7%

0.0%

520

534

16.9%

2.8%

(13.7%)(14.1%)

8.5%

235

230

11.6%

-1.8%

120

8.0%

240

4.0%

54.8%

285

303

21.2%

6.5%

105

7.6%

320

5.4%

(7.5%)(8.0%)

291

307(7.7%)(8.1%)

200

203(5.3%)(5.4%)

Full Year
Targets

Full Year
Results

(d)

(e)

8.1%

3,900

1,521

15.1%

457

208

26.2%

(12.5%)(13.7%)(13.7%)

Selling, General and Administrative Expenses

102

206

111

Operating Income

63

250

97

(4.8%)(7.5%)(6.4%)

64

253

99

(4.9%)(7.6%)(6.6%)Net Income Attributable to
Owners of Parent

41

144

68

(Net Profit Margin)(3.1%)(4.3%)(4.5%)

2nd Quarter
Results

Full Year
Results(a)(b)

Orders Received

1,786

3,701

1,930

Net Sales

1,322

3,341

Gross Profits

165(Gross Profit Margin)(Operating Margin)
Recurring Profit(Recurring Profit Margin)

FY March 2019

54.6%

65.1%

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

(g)

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

-6.2%

4,000

-0.6%

1,700

11.7%

4,000

5.3%

225

7.9%

560

4.8%

(13.2%)(14.0%)(6.2%)
21.2%

5.5%

107

(8.0%)
7.2%(6.3%)
40.8%

2.0%

70
(4.1%)

Full Year
Targets322

4.9%(8.1%)
2.7%

210(5.3%)

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.

3.0%

02 Income Statements [by operating company group] (results for fiscal year ended March 31, 2018)(Unit: ¥100 million)

Comparisons with the Previous Term

Nippon COMSYS-G

SANCOM-G

TOSYS-G
Percentage Mar. 2017
Results
difference

Mar. 2018
Results

Percentage
difference

-2.4%

486

491

1.1%

285

6.2%

467

487

4.3%

27

28

4.4%

54

57

6.6%

(10.1%)(9.9%)(11.6%)(11.8%)

2.4%

14

14

-2.8%

27

29

6.8%

129.1%

12

13

12.9%

26

28

6.4%

(4.6%)(4.9%)(5.6%)(5.7%)

Mar. 2017
Results

Mar. 2018
Results

Percentage
difference

Mar. 2017
Results

Mar. 2018
Results

Percentage
difference

Mar. 2017
Results

Mar. 2018
Results

Orders Received

2,520

2,704

7.3%

454

588

29.7%

278

271

Net Sales

2,203

2,530

14.8%

437

541

23.7%

268

Gross Profits

315

360

14.2%

42

66

57.6%

(14.3%)(14.2%)(9.6%)(12.3%)

Selling, General and Administrative Expenses

132

154

16.4%

23

24

Operating Income(Operating Margin)

183

206

12.6%

18

42

(8.3%)(8.1%)(4.2%)(7.8%)

Recurring Profit(Recurring Profit Margin)

185

208

(8.4%)(8.2%)

100

139(4.6%)(5.5%)(Gross Profit Margin)

Net Income Attributable to Owners of Parent(Net Profit Margin)

12.3%
38.3%

18

42

(4.2%)(7.8%)

1128(2.6%)(5.2%)TSUKEN-G

128.9%
148.8%

12

14(4.6%)(5.0%)

79(2.9%)(3.2%)

14.1%
16.8%

26

28

(5.8%)(5.9%)

22

18(4.9%)(3.9%)

6.7%-17.1%(Unit: ¥100 million)

Comparisons with Forecasts

Nippon COMSYS-G

SANCOM-G

Mar. 2018
Targets

Mar. 2018
Results

Percentage
difference

Mar. 2018
Targets

Orders Received

2,670

2,704

1.3%

510

588

Net Sales

2,616

2,530

-3.3%

479

Gross Profits

373

360

-3.4%

(14.3%)(14.2%)

Selling, General and Administrative Expenses

156

154

Operating Income(Operating Margin)

217

206

(8.3%)(8.1%)(Gross Profit Margin)

TOSYS-GMar. 2018 Percentage
difference
Results

TSUKEN-G
Percentage Mar. 2018
difference
Targets

Mar. 2018
Results

Percentage
difference

-2.3%

485

491

1.4%

285

-1.6%

485

487

0.5%

28

28

0.9%

57

57

1.3%

(9.7%)(9.9%)(11.8%)(11.8%)

1.4%

15

14

-4.3%

30

29

-0.8%

121.1%

13

13

6.9%

27

28

3.7%

(4.5%)(4.9%)(5.6%)(5.7%)

Mar. 2018
Targets

Mar. 2018
Results

15.5%

278

271

541

13.0%

290

43

66

54.3%

(9.0%)(12.3%)

-1.2%

24

24

-5.0%

19

42

(4.0%)(7.8%)

Notes: 1. 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.
Notes: 2. No elimination of intergroup transactions between groups

03 Income Statements [by operating company group] (forecasts for fiscal year ending March 31, 2019)(Unit: ¥100 million)

Forecasts for the full year

Nippon COMSYS-G

SANCOM-G

TOSYS-GMar. 2019
Targets

Percentage
difference

6.7%

491

500

1.7%

300

5.2%

487

505

3.6%

28

29

2.6%

57

62

7.3%

(9.9%)(9.7%)(11.8%)(12.3%)

-1.4%

14

15

4.5%

29

31

4.2%

-0.0%

13

14

0.7%

28

31

10.7%

(4.9%)(4.7%)(5.7%)(6.1%)

Mar. 2019
Targets

Percentage
difference

Mar. 2018
Results

Mar. 2019
Targets

Percentage
difference

Mar. 2018
Results

Mar. 2019
Targets

Orders Received

2,704

2,730

0.9%

588

605

2.8%

271

290

Net Sales

2,530

2,770

9.5%

541

565

4.4%

285

Gross Profits

360

380

5.5%

66

66

-0.5%

(14.2%)(13.7%)(12.3%)(11.7%)

Selling, General and Administrative Expenses

154

160

3.8%

24

24

Operating Income

206

220

6.7%

42

42

(8.1%)(7.9%)(7.8%)(7.4%)(Gross Profit Margin)(Operating Margin)

TSUKEN-G
Percentage Mar. 2018
difference
Results

Mar. 2018
Results

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.

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

FY March 2017

FY March 2018
YoY
2nd Quarter Percentage
Results
difference(c)((c) – (a))⁄ (a)2nd Quarter
Results(a)

Full Year
Results(b)

Social System-Related and Other

1,003
122
263
396

2,035
284
553
828

947
171
293
517

Total

1,786

3,701

1,930

Business Area

NTT Engineering
NCC Engineering
IT Solutions

Net Sales

Social System-Related and Other

1,845
274
550
671

796
146
228
350

Total

1,322

3,341

1,521

IT Solutions

Contract Backlogs

Social System-Related and Other

749
50
136
437

900
75
201
604

Total

1,477

1,373

1,782

IT Solutions

4,022

vs. Forecast
Percentage
difference((e) – (d)) ⁄ (d)

-9.4%

2.5%

37.8%

26.6%

9.3%

-2.4%

42.4%

-10.3%

0.9%

850
165
300
495

-4.4%

1,755
380
640
1,225

8.7%

3.1%

1,810

-6.2%

4,000

YoY
Percentage
difference((e) – (b)) ⁄ (b)vs. Forecast
Percentage
difference((e) – (d)) ⁄ (d)Full Year
Targets(d)Full Year
Results
(e)

28.1%

1,845
295
600
1,060

1,859
357
590
992

15.1%

3,800

3,800

8.0%

0.8%

0.8%

46.9%

30.3%

21.1%

8.3%

7.3%

-1.5%

47.8%
13.7%

Full Year
Results
(e)

49.9%

734
85
150
625

20.7%

1,595

9.2%
20.8%
8.1%

-4.0%
2.2%

-4.9%
-3.2%
5.8%
3.8%
-0.6%

FY March 2019
YoY
YoY
2nd Quarter Percentage Full Year Percentage
Targets
Targets
difference
difference(f)((f) – (c)) ⁄ (c)(g)((g) – (e)) ⁄ (e)

-6.4%

790
150
240
520

0.0%

1,700

FY March 2018

824
62
186
403

NCC Engineering

3,900

11.5%

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

NTT Engineering

8.1%

40.0%

FY March 2017
2nd Quarter
Results(a)Business Area

1,845
392
604
1,180

YoY
Percentage
difference((e) – (b)) ⁄ (b)FY March 2018

737
99
210
273

NCC Engineering

30.6%

1,800
310
620
1,170

-5.6%

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

NTT Engineering

Full Year
Results(e)

FY March 2017
2nd Quarter
Results(a)Business Area

Full Year
Targets(d)(Unit: ¥100 million)
FY March 2019
YoY
YoY
2nd Quarter Percentage Full Year Percentage
Targets
Targets
difference
difference(f)((f) – (c)) ⁄ (c)(g)((g) – (e)) ⁄ (e)YoY
Percentage
difference((e) – (b)) ⁄ (b)

-1.9%
70.2%
10.2%
42.8%
16.2%

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.

48.2%

1,830
350
600
1,220

22.9%

11.7%

4,000

5.3%

-0.8%
2.7%
5.1%

-1.6%
-2.0%
1.5%

Received and Net Sales by Detailed Business Area
05 Ordersfor Five Companies on a Non-Consolidated Simple Sum Basis(Unit: ¥100 million)
FY March 2017

Orders Received
Business Area

FY March 2018

2nd Quarter
Results

Full Year
Results

(a)

(b)

YoY
2nd Quarter Percentage
Results
difference(c)((c) – (a)) ⁄ (a)FY March 2019

Full Year
Targets

Full Year
Results

YoY
Percentage
difference

vs. Forecast
Percentage
difference

(d)

(e)

((e) – (b)) ⁄ (b)((e) – (d)) ⁄ (d)YoY
2nd Quarter Percentage
Targets
difference(f)((f) – (c)) ⁄ (c)Full Year
Targets

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

538

1,061

516

-4.1%

990

997

-6.1%

0.7%

490

-5.1%

985

-1.2%

Network

95

240

100

5.1%

205

197

-17.9%

-3.5%

100

-0.2%

190

-3.9%

Mobile

356

716

322

-9.7%

585

638

-10.9%

9.2%

250-22.4%

565-11.5%

990

2,019

938

-5.2%

1,780

1,833

-9.2%

3.0%

840

-10.5%

1,740

-5.1%

NCC Engineering

123

285

171

39.6%

310

393

37.8%

27.0%

170

-1.1%

380

-3.5%

IT Solutions

203

434

230

13.2%

485

483

11.2%

-0.3%

230

-0.2%

505

4.5%

Social System-Related and Other

177

431

254

43.6%

475

539

25.2%

13.6%

145

-43.0%

485-10.1%

1,494

3,170

1,595

6.8%

3,050

3,250

2.5%

6.6%

1,385

-13.2%

3,110

-4.3%

NTT Engineering

Subtotal

Total

FY March 2017

Net Sales
Business Area

FY March 2018

2nd Quarter
Results

Full Year
Results

(a)

(b)

YoY
2nd Quarter Percentage
Results
difference(c)((c) – (a)) ⁄ (a)FY March 2019

Full Year
Targets

Full Year
Results

YoY
Percentage
difference

vs. Forecast
Percentage
difference

(d)

(e)

((e) – (b)) ⁄ (b)((e) – (d)) ⁄ (d)YoY
2nd Quarter Percentage
Targets
difference(f)((f) – (c)) ⁄ (c)Full Year
Targets

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

405

1,021

422

4.0%

1,030

1,008

-1.2%

-2.1%

450

6.6%

1,000

-0.9%

Network

79

229

92

16.3%

200

208

-9.1%

4.4%

70

-24.7%

200-4.2%

Mobile

243

572

276

13.8%

580

632

10.4%

9.0%

270

-2.5%

600

-5.1%

728

1,823

791

8.6%

1,810

1,849

1.4%

2.2%

790

-0.2%

1,800

-2.7%

NCC Engineering

99

274

146

47.0%

295

358

30.4%

21.5%

150

2.4%

350

-2.4%

IT Solutions

160

435

171

6.8%

485

465

6.8%

-4.0%

175

2.3%

465

-0.1%

Social System-Related and Other

126

359

128

2.0%

410

397

10.7%

-2.9%

185

43.6%

480

20.6%

1,115

2,893

1,238

11.1%

3,000

3,071

6.1%

2.4%

1,300

5.0%

3,095

0.8%

NTT Engineering

Subtotal

Total

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.

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

March 2017
Results

March 2018
Results

March 2019

Comparisons with the previous term
Percentage
Difference
difference

Targets

Comparisons with FY March 2018
Percentage
Difference
difference

Tangible Assets

84

134

49

58.0%

55

-78

-58.5%

Intangible Assets

11

10

-1

-10.1%

14

3

37.0%

Total

96

144

48

49.9%

69

-74

-51.7%

Depreciation and Amortization

57

58

1

2.5%

58

0

0.2%

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)(Unit: ¥100 million)

+438

+438

3,281

3,281
(+115)

2,843(+193)

Current Assets

1,671

828

2,843
• Cash and cash equivalents+81

Current
Liabilities• Accounts receivable—trade

+75

712

1,865

• Accumulated costof construction in progress+51

Long-Term
Liabilities• Other current assets

-15

101

• Accounts payable—trade

+57
+41

• Advances received on
construction in progress+15• Income taxes payable(+288)• Gain on disposal oftreasury stock

Net Assets

2,029
Fixed Assets

1,172

As of March 31, 2017

• Property, plant and equipment,+157
including buildings• Goodwill+53• Investment securities+18• Other assets

+15

1,416

+80

• Net Income attributable toowners of parent

+203
-80
• Repurchase of treasury stock• Decrease of treasury stock
due to share exchange(+244)

135(+34)• Cash dividends

+103
-50

• Other

+32

2,317

*Equity ratio
From 70.9% to 70.1%

As of March 31, 2018

As of March 31, 2017

As of March 31, 2018

08 Consolidated Cash Flow (Condensed)
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

+288

-138

• Income before income taxes
and other adjustments
to net income+308• Depreciation and amortization +58• Cash and cash equivalents-65
paid for income taxes• Increase in receivables—trade -25-47• Increase in inventories• Decrease in allowance for-14
doubtful receivables+72• Other• Acquisitions ofproperty and equipment• Acquisitionsof intangible fixed assets• Other(Unit: ¥100 million)

-131
-10
+2

Cash Flows from
Financing Activities-124• Acquisitions of treasury stock -80• Cash dividends paid
-50
• Other+6289• Newly consolidated subsidiaries +56

208

+80

Cash and
Cash Equivalents
at End of Year

Cash and
Cash Equivalents
at End of YearAs of March 31, 2017

As of March 31, 2018

— 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’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/