Presentation of Performance for the First Half
Fiscal Year Ending March 31, 2016

November 13, 2015

Contents
I . Overview of Performance for the First Half of the Fiscal Year Ending March 31, 2016
1. Highlights of the First Half Financial Statements
2. Details of the First Half Orders Received by Business Segment
3. Details of the First Half Sales by Business Segment
4. Details of First Half Operating Income
II . Full Year Forecasts for the Fiscal Year Ending March 31, 2016
1. Full Year Forecasts
2. Contract Backlogs (1)3. Contract Backlogs (2)III . Trends at Principal Carriers
1. Trends in NTT Fixed-Line Related Business2. Trends in NTT Mobile Business3. Trends in NCC Business4. Forecasts for Mobile Data Traffic
5. NTT DOCOMO Network
IV . Strategies for Top-Line Expansion
1. Medium- to Long-Term Targets
2. Solar Power-Related Business3. Progress in Post Solar Development Business (1)4. Progress in Post Solar Development Business (2)5. Profit Improvement at Ecosystem Japan Group
V . Shareholder Returns Policy
1. Additional Measures for Shareholder Returns
2. Shareholder Returns Policy (Dividends and Acquisition of Treasury Stock)

3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
2

I-1. Highlights of the First Half Financial Statements
Although sales and profit fell short, orders received exceeded forecasts(Unit: ¥100 million)

Performance inprevious term

Comparisons withthe previous term

Forecasts

Percent of Net Sales

Percent of Net Sales

Difference

Percent of Net Sales

1,626

1,735

Performance

Orders Received

-108

1,520

Comparisonswith forecasts
Difference

+106

1,287

1,442

-155

1,310

-22

161

214

-53

180

-18

12.5%

14.9%

-2.4 percentage points

13.7%-1.2 percentage points

Selling, General and

95

102

-7

100

-4

Administrative Expenses

7.5%

7.1%

+0.4 percentage points

7.6%-0.1 percentage points

65

111

-46

80

-14

5.1%

7.7%

-2.6 percentage points

6.1%-1.0 percentage points

68

113

-44

83

-14

5.3%

7.8%

-2.5 percentage points

6.3%-1.0 percentage points

45

68

-23

50

-4

3.5%

4.8%

-1.3 percentage points

3.8%-0.3 percentage points

Net Sales

Gross Proﬁts

Operating Income

Recurring Proﬁt
Net Income
Attributable to
Owners of Parent

Remarks

Orders Received
The NCC Engineering business declined considerably as investment by telecommunications
carriers was restrained, so orders received werelower than the previous term, which recorded
an all-time high. However, orders received werehigher than forecasts as the mainstay NTT infrastructure business remained robust.

Net Sales
Carrier-related business (NTT and NCC) was
flat, and sales declined, falling below the previous term, which recorded an all-time high.
In addition, while non-carrier-related business(social system and IT) remained robust, sales
fell short of forecasts due to a decline in sales inmobile-related business (NTT mobile and NCC).

Operating Income
Despite structural reforms and efforts to raise
productivity, income fell short of the previous
term and forecasts due to the decline in net
sales and deterioration in the product mix.

Notes: 1. Performance in the previous term (ﬁrst half of the ﬁscal year ended March 31, 2015) recorded an all-time high since the establishment of the Company, with ¥173.5 billion in orders received, ¥144.2 billion in net sales, and ¥11.1 billion in operating income.
2. Figures are rounded down to the nearest whole unit.

3I-2. Details of the First Half Orders Received by Business Segment
Orders received higher than forecast
as NTT Engineering business remained robust(Unit: ¥100 million)

Comparisons with
the Previous Term

-108(-6.2%)

Comparisonswith Forecasts
Decline due to curbing ofinvestment at au and Softbank(decline in orders placed)

+40

+106
(+7.0%)

-68
NTT-G
+4.6%
NCC
-34.8%NTT Business (Access)Increase due to early starton utility pole renewal
work
NTT Business (Network)
Increase due to orders
moved forward forinfrastructure (network
simplification) projects

Decline in reaction to large-scale projects(fire prevention/firefighting, police)in previous term

-47
IT
-16.4%

Failure to receive orders for
network construction anddisaster prevention radio
communications projects
as a result of building
relocations

Decline due tocurbing of investment
at au and Softbank(decline in orders placed)-26-32
Social System-Relatedand Other
-9.0%

+4

-21

Social System-Relatedand Other
+1.5%

IT
-8.1%

+149

• Increase due to orders• moved forward for• solar construction projects• Increase in C.C.Box• construction

Decline in reaction
to consolidation of
Ecosystem Japanin previous term

1,735

1,626

Performance in Previous Term

Performance

NCC-17.1%

NTT-G+19.3%NTT Business (Access)Increase due to early start on utility polerenewal work
NTT Business (Network)
IIncrease due to orders moved forward for
network simplification projects
NTT Business (Mobile)
Increase due to start of negotiations for new
base stations and actual construction work

1,520

Target4

I-3. Details of the First Half Sales by Business Segment
Comparisons with
the Previous Term

Decline in sales due to flat carrier-related business-155

Comparisonswith Forecasts-22(-10.8%)-123(-1.7%)NTT Business (Access)Decline in general and integrated
services projects
NTT Business (Network)
Decline in D70 switchingequipment renewal work
NTT Business (Mobile)
Decline in reaction to base station
construction in previous term

NTT Business (Mobile)
Decrease due to postponementof base station negotiations andindoor base station projects

Increase in allied company(medical) projects

NTT-G-14.8%-52

Increase in solar
construction projects

NCC-30.1%
Decline in reaction to
au LTE-related projects
in previous term

Performance in Previous Term

-11

+0
+13

Social System-RelatedIT
and Other+10.3%
+0.0%

+20

1,442

(Unit: ¥100 million)• Increase in solar• construction projects• Increase due to• new consolidated• companies• Failure to receive• orders for government• and municipal• office-related projects

Social System-Relatedand Other
+6.1%

1,287

Performance

+8
IT
+4.0%

Increase in allied
company projects

-33

NTT-G
-1.6%

NCC
-21.4%

Decrease in au
LTE-related projects

1,310

Target5

I-4. Details of First Half Operating Income
Decline in income due to decreasein net sales and deterioration in product mix

Comparisons with
the Previous Term

(Unit: ¥100 million)

Comparisonswith Forecasts

-46

-15

(-41.3%)(-18.2%)-62
Decrease in
net sales anddeteriorationin product mix

-24
+2
+2
+9

111

Structuralreforms andimproved
productivity+5+4
Recovery inperformance of Improvement+3
Ecosystems
due toStructuralJapan
cost reduction reforms andimproved
productivity

Recovery in
Improvement performance ofdue toEcosystems
cost reduction
Japan

Decrease in
net sales anddeteriorationin product mix

65

80

Operating Margin(7.7%)

Operating Margin(5.1%)

Operating Margin(6.1%)

Performance in Previous Term

Performance

Target6

II-1. Full Year Forecasts for the Fiscal Year Ending March 31, 2016
We will aim to achieve forecasts by completingthe large number of contract backlogs and reducing lead time

Orders Received

FY March 2015
Performance

FY March 2016
Targets

Comparisons withFY March 2015

Percent of Net Sales

Percent of Net Sales

Difference

3,369

3,320
3,310

+23

479

480

+0

14.6%

14.5%

-0.1 percentage points

Selling, General and

202

200

-2

Administrative Expenses

6.2%

6.0%

-0.2 percentage points

276

280

+3

8.4%

8.5%

+0.1 percentage points

281

285

+3

8.6%

8.6%

+0.0 percentage points

167

170

+2

5.1%

5.1%

+0.0 percentage points

Gross Proﬁts

Operating Income

Recurring Proﬁt

Net Income Attributable to
Owners of Parent

Remarks

-49

3,286

Net Sales(Unit: ¥100 million)

Orders Received
While orders received in the NCC Engineering business were low inthe ﬁrst half, orders received overall progressed largely in line with
forecasts. In the second half, we will further expand orders received
based on an anticipated recovery in the NCC business and aggressive
proposal marketing.

Net Sales
We will aim to achieve forecasts by improving construction efﬁciency
with a large number of projects carried forward (contract backlogs)
and appropriate operations management.

IncomeWe will aim to achieve forecasts by recording completions earlythrough shorter lead times (from receipt of orders to projectcompletion) and further reductions in expenses.

Notes: 1. The forecasts for the ﬁscal year ending March 31, 2016 have not been changed from the forecasts announced in the ﬁnancial results summary dated May 8, 2015.
2. Figures are rounded down to the nearest whole unit.

7

II-2. Contract Backlogs (1)Hopes for net sales in second half and beyond due to all-time-high contract backlogs(Unit: ¥100 million)(Target)

3,313

3,310

3,286

3,160
All-time-highcontract backlogs

1,059(Second half)
1,838

1,133

(Second half)
1,908

1,190

(Second half)
1,844(Second-half forecasts)
2,023
1,321

Social System-Relatedand Other
IT
NCC

NTT

(First half)
1,322

2Q Contract Backlogs

Net Sales

FY March 31, 2013

(First half)
1,405

2Q Contract Backlogs

Net Sales

FY March 31, 2014

(First half)
1,442

2Q Contract Backlogs

Net Sales

FY March 31, 2015

(First half)
1,287

2Q Contract Backlogs Net Sales (Target)FY March 31, 20168

II-3. Contract Backlogs (2)Expecting all-time-high project volume due to a large number ofcontract backlogs and orders received in second half
(Unit: ¥100 million)

Large number oforders received
forecast in second half

Orders Received(Second half)
1,694 + αAll-time-highproject volume
expected insecond halfand beyond

Orders
Received
R
1,694
+α

Orders Received Net Sales(First half) (First half)
1,287
1,626

Net Sales(Second half)
2,023

We will aim to achieve
forecasts througha high number of projects.

1,321
992 + β981
Contract
Backlogs
1,321

All-time-highcontract backlogs

FY March 31, 2015
Contract Backlogs

First Harf
Contract Backlogs

Second-Half Project Numbers(orders received + contract backlogs)

FY March 31, 2016
Contract Backlogs

9III-1. Trends in NTT Fixed-Line Related Business(Unit: ¥100 million)

NTT East and NTT West capex(including optical fiber collaboration)

1,805

6,907
6,266
3,513

3,197
NTT EAST

Investment infiber optics
2,630

1,613

1,287

3,394
NTT WEST

2,687

Investment infiber optics
2,240

3,145

2,241

Investment infiber optics
2,050

1,214

(First-Half) (Full-Year)
Mar. 2014(First-Half) (Full-Year)
Mar. 2015(First-Half) (Full-Year Target)
Mar. 2016

Orders received at COMSYS Group (NTT Business−Access)(Unit: ¥100 million)

930

932

880

Second-half

452

475

455

First-half

478
Results
Mar. 2014

Results
Mar. 2015

1,904

1,040

1,051

425

Results Target
Mar. 2016

Optical fiber
collaboration
19

NTT EAST

1,027 2,900

1,400

489

1,019

3,000

1,584

457

1,871

5,900

3,121

(Unit: 10,000 lines)

No. of FLET’S subscriptions

786
NTT WESTMar. 2014

831
Optical fiber
collaboration
8

Mar. 2015

Note: No. of subscriptions is cumulative,
optical fiber collaboration is reposted.

Optical fiber
collaboration
164

853
Optical fiber
collaboration
71

1,931
1,080
Optical fiber
collaboration
399

851
Optical fiber
collaboration
226

Mar. 2016

Mar. 2016(First-Half)(Full-Year Forecasts)

Source: NTT Results Briefing Materials

NTT East and West
• Overall capex for NTT Group revised to ¥1,730.0 billion from initial ¥1,760.0 billion, in
consideration of a ¥30.0 billion decrease in NTT DOCOMO.
• Although there are no revisions to the initial full-year capex of ¥590.0 billion at NTT
East and West, there is a trend of a gradual decline, with the ﬁrst half down 17% fromthe previous term to ¥224.1 billion.
No. of FLET’S subscriptions (including optical ﬁber collaboration)• The net increase in FLET’s subscriptions has been diminishing due to the impact ofmobile communications, etc.
• The number of optical ﬁber collaboration subscriptions at NTT East and West has increased
since the end of the previous ﬁscal year (the year ended March 31, 2015) with the majority
being transfers from other services (new: 270,000 lines, transfers: 1.8 million lines).
COMSYS Group• At the current stage, optic ﬁber collaboration has not resulted in an increase in orders
received due to the large number of transfers.
• Increase in orders received is due to the early start on utility pole renewal work.

COMSYS Group materials: Simple total for five companies; NTT Engineering business–Access

10III-2. Trends in NTT Mobile Business(Unit: ¥100 million)

NTT DOCOMO
Capital Expenditure Trends

6,000
2,470

6,300

(Smart Lifebusiness, etc.)

FOMA

1,057
9

0

0

2,925

3,530

Mar. 2015

Mar. 2016

Mar. 2016

Mar. 2016(First-Half)(First-Half)(Current Forecast)(Initial Forecast)

LTE

3,660
900
stations

Orders received at COMSYS Group (NTT Business−Mobile)(Unit: ¥100 million)

712
622
Second-Half

395

570

299
320

First Half

LTE base stations
97,400 stations

2,195
824
2
1,369

1,859

115,400
stations

2,640[ First-half comparison ]Other

LTE Network

317

323

Results
Mar. 2014

Results
Mar. 2015

316

250

Results Target
Mar. 2016

COMSYS Group materials: Simple total for five companies; NTT Engineering business–Mobile

130,000
stations
Premium
4G-enabledbase stations
18,000stations

First half fiscal 2015:priority roll-out of
7,700 base stations in
640 cities acrossJapan
Launch of
262.5Mbps service
Launch of 300Mbps
servicefrom October 2015
(410 cities nationwide)

7,700
stations

FY March 2014 FY March 2015
(First-Half)

Fastest in Japan

March 2016
(projection)
Source: NTT DOCOMO Results Briefing Materials

NTT DOCOMO• First-half capex amount remains the same as the original forecast, but the second half
will increase over the ﬁrst half
• Overall capex for the year cut from initial ¥630.0 billion to ¥600.0 billion due to the introduction of new technology, reductions in procurement costs, greater efﬁciency in research and development and information systems investment, along with other reasons.
• No change to future capex plans (until ﬁscal 2017) from maximum of ¥650.0 billion as
in the medium-term target announced last year.
COMSYS Group• Initial planning was made with the emphasis on the latter half of the ﬁscal year, with theﬁrst-half forecasts being too conservative. However, orders received during the ﬁrst half
exceeded forecasts due to an early start of new negotiations and the consulting business• Expectations of orders received and sales in second half in anticipation of increasing
the speed of the LTE network.
• Cost pressures are expected to be severe considering greater cost efﬁciency at NTT
DOCOMO. However, assuming future trafﬁc demand, there will be ongoing demand formobile-related projects.

11III-3. Trends in NCC Business(Unit: ¥100 million)

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

Softbank Capex(Telecommunications business in Japan)

6,677

6,000
7,125
6,316

3,224
Fixed

3,900

Mar. 2015

Mar. 2016(Forecast)Mar. 2017(Forecast)

1,238
1,942

1,312

First-Half Full-Year

Mar. 2013

First-Half Full-Year(Forecast)Mar. 2015

Mar. 2016(Japan standards)

Source: KDDI Results Briefing Materials

Orders received at COMSYS Group (NCC)(Unit: ¥100 million)
Softbank platinum band

470
395
340

350

142

195

183

198

155

Results
Mar. 2014

Results
Mar. 2015

220
212

Second-halfFirst-half

3,900

2,551

1,282

(Includes UQ)

Mobile5,355

250

Results
Mar. 2013

127

Results Target
Mar. 2016

COMSYS Group materials: Simple total for five companies; NCC Engineering businessMar. 2014

Targets (International accounting standards)

Source: Softbank Group Results Briefing Materials (First quarter, fiscal year ending March 31, 2016)KDDI• apital expenditures in ﬁrst half down ¥63.0 billion from the same period in
the previous term, progress rate of 42.5%.
• Mobile investment shifting to improvement of network quality with area
expansion already completed.
Softbank• Capital investments peaked and moving toward generation of free cash
ﬂow (FCF).
• Required investment in steel towers has run its course.
COMSYS Group• First half fell short of previous term and forecasts due to restraint anddecline of carrier investment.
• Area expansion, including base station construction, already complete.
• Expectation of work for network acceleration and new frequencies (3.5GHz
band) in the future.

12III-4. Forecasts for Mobile Data Traffic<Current Status>• Not only is the volume of mobile data trafﬁc increasing, but the form is alsochanging signiﬁcantly›› Per capita traffic is rising (World: approximately 1.8-fold/year, Japan:
approximately 1.4-fold/year)›› Tendency for concentration in urban areas and increase in local-area trafﬁc›› Possibility of further increases in trafﬁc in the future due to diversiﬁcationin communications devices (M2M, IOT, etc.)

Average monthly trafﬁc volume (Japan)(Gbps)
1,200

Trends and forecasts for Internet of Things (IoT)

Increase in trafﬁc volume in 2020s
Wearable devices(100 million items)
600
1.41-fold increasein one year

1,000
800

An explosive expansion isforeseen (5.1-fold in ten years) in
IoT, or the number of things
connected to the Internet

1,032.3500

Over1,000 times

530

400

729.9

600

Smartphones and tablets(Video streaming, healthcare, education, etc.)

300

Domestic appliances

242

469.8
400
200

<Forecast for 2020s>• While precise forecasting is difﬁcult, it is expected that mobile data
trafﬁc will continuously rise, considering the diversiﬁcation of communications devices, user needs for ultra-high-speed communications, and the use of diverse radio waves.
• Assuming that the annual rate remains at around 1.5 – 2-fold in the
future, it is possible that trafﬁc in the 2020s will be over 1,000 times
that of 2010.

4K/8K

Traffic

200
Main factors supposed to include increasein the number of LTE subscribers held by
carriers and growth in use of high volume
content such as video

274.3

0

100

104
Automobiles
and sensors

0June 2012

June 2013

June 2014

June 2015

Source: Data published by Ministry of Internal Affairs
Source: and Communications

2011

2015

2020

Source: Data published by Ministry of Internal Affairs
Source: and Communications

2010

202X

Source: Prepared by Comsys based on information concerning the Radio Policy Vision Meeting,Source: NTT DOCOMO

Promoting 4K and 8K (schedule draft)[Vision for 2020]
2015

2016

2018

4K and 8K trial broadcasts

Source: Data published by Ministry of Internal Affairs and Communications

2020
2020 Tokyo Olympics

4K broadcasts

2019
Rugby World Cup

BS

Rio Olympics

CS
CATV, etc
etc.

2017

4K and 8K broadcasts

Expansion in number of channels

13III-5. NTT DOCOMO Network
March 2014

March 2015

March 2016•••

March 2020

700MHz band
800MHz band (receiving max. 75Mbps)
LTE

1.5GHz band (receiving max. 112.5Mbps)
1.7GHz band (receiving max. 150Mbps)
2GHz band (receiving max. 112.5Mbps)*1

3.5GHz band (TDD)

225 Mbps

262.5 Mbps

300 Mbps

370 Mbps

Toward 1 Gbps

CA *2
LaunchCA
Speed UpCA
Upgrade(3CC)

3.5GHzBand

MIMO*3Upgrade,etc.

LTEAdvanced

4G
5th
Generation

Under development*1. Multiple patterns of bundling frequency bands have been achieved other than those described above.
*2. CA (carrier aggregation): technology for bundling multiple frequency bands to improve communication speed*3. MIMO: technology for receiving and transmitting different signals simultaneously from multiple antennas

5G
5th generation
frequencies:
3 – 30GHz bands

Source: Prepared by C0MSYS based on NTT DOCOMO materials

14IV-1. Medium- to Long-Term Targets• To steadily expand non-carrier-related business (social systems and IT solutions business) as sales composition ratio,
primarily solar construction projects (EPC business) with objective of top-line expansion• Carrier-related business, primarily fixed line, expected to gradually decline in the future. Therefore, we plan to further
expand sales for non-carrier-related business over the medium to long term with a target of 50% as sales composition ratio.
• Moreover, we are aiming for ¥400.0 billion in net sales over the medium to long term by promoting new business such as
post solar and expanding business segments through alliances and M&As.

Net Sales by Segment (Full Fiscal Year)

4,000(Unit: ¥100 million)
Figures in parentheses: sales composition ratio

2,958

352
376
(28%)

IT

445

NCC

336

489

(27%)

3,313

3,286

3,310

403

554

650

524
447

409

(33%)

537

575

356

355

(50%)

(72%)
(67%)
(63%)

NTT 1,800

March 2012

1,909

1,938

1,836

1,730

(50%)

March 2013

March 2014

March 2015

March 2016
(Targets)

March 202X
(Forecasts)

Carrier-Related Business

(73%)

(72%)

(28%)

(37%)

Non-Carrier-Related businessSocial System-Relatedand Other

3,160

15

IV-2. Solar Power-Related BusinessSolar Power Construction (EPC) Business
Due to favorable first-half performance, EPC business is reaching peak and orders received
in the fiscal year ending March 2016 is expected to exceed the previous term due to favorable first-half performance
220

120

100
60
20 4Q
2Q
Mar. 2013(Unit: ¥100 million)

Orders received
expected to be stable
for next few years

190

60

40

Mar. 2014

Mar. 2015

Mar. 2016

Mar. 2017

Mar. 2018

Mar. 2019

Mar. 2020

Solar Power Generation (IPP) Business
Steady investment in first half with amount of investment to reach almost ¥8.0 billion at end of current fiscal year
Results Up to
Fiscal Year Ended March 31, 2015

Power stations

Volume Single yearof power Cumulative
generatedtotal
Single year
Investment Cumulative
total

FY March 2016
First-Half Results

Hitachiota City, Ibaraki Prefecture
Showa-mura, Gunma Prefecture
Tsu City, Mie Prefecture
Kita-Ibaraki City, Ibaraki Prefecture
Kato City, Hyogo Prefecture

Tsukuba City, Ibaraki Prefecture(completed June 2015)
Iga City, Mie Prefecture(completed September 2015)—

Second-Half Targets

FY March 2017 and Beyond
Targets

Northern Kanto

Northern Kanto(Completion scheduled for December 2015)(Completion scheduled for March 2017)

KyusyuTohoku(Completion scheduled for December 2015)(Completion scheduled for May 2017)

Other 2 projects

Other 6 projects

3.7MW

5.7MW

40.4MW

14.7MW

18.4MW

24.1MW—¥1.2 billion¥1.8 billion¥12.6 billion¥4.5 billion¥5.7 billion¥7.6 billion¥20.2 billion

64.5MW*Also considering utilization for PPS business16

IV-3. Progress in Post Solar Development Business (1)Areas of Ecological Innovation<Environment and Energy>

Areas of Urban Revitalization Innovation<Nationwide Resilience>

Areas of Community Revitalization Innovation<Community Development>(1) Repair of NTT facilities• Increase in infrastructure-related work expected(1) Solar power generation (IPP)(2) Solar power construction (EPC)

Already
introduced• Development of new projects (Floating/carport/
agriculture-model solar systems)(3) Grey water business(4) Industrial Waste Recycling Business• M&A with industrial waste recycling company in Hokkaido• Commercialization of industrial waste business in
Shinetsu area

(2) Full-scale earthquake reconstruction(3) Removal of utility poles• Aim to expand orders received in Tohoku area

(4) Water and sewerage facilities• Plan expansion into Nagoya and Osaka taking advantage
of successful performance in Tokyo
Approx. ¥2.0 billion (this ﬁscal year) ¥3.0 billion (in 3 years’ time)(5) Renovation of Shuto Expressway• Expand into NEXCO work leveraging Shuto Expressway track record• Success in receiving ﬁrst order (approx. ¥500 million), leverage
track record to expand
Approx. ¥1.0 billion (this ﬁscal year) ¥3.0 billion (in 3 years’ time)(1) Effective utilization of assets• Enhance property development business throughutilization of idle real estate• Start commercialization of ﬁrst project
Business investment ¥12.0 billion (in 3 years’ time)(2) Okinawa projects• Launch of project team to acquire projects for development and promotion of Okinawa(1) Agricultural engineering• Develop Joshinetsu area business in collaboration

with Kawanakajima Kensetsu• Success in receiving ﬁrst order (approx. ¥100 million), leverage
track record to expand(1) Wood biomass• Commercialization combined with heat supply insmall-scale category(2) Energy Service Company (ESCO) business• Implement capital tie-ups with allied companies(3) Electricity retailing (PPS)

Short- tomedium-term• Developing business with Eco Japan acting as electricity retailer• Collaborate with COMSYS Create’s power generation
business(4) Smart grid(1) Tokyo Olympics-related work
(1) Water treatment and electrical installation work
• Leverage track record to expand into Kansai and Kyushu areas• M&A with engineering companies in Shinetsu region(2) Revitalization and upgrading of urban infrastructure• Long-term infrastructure plans for major cities• Establishment of venues, transportation networks,
accommodation, etc.

(2) Development of area around Shinagawa Station• Utilize land rights to COMSYS Shinagawa Building
to be actively involved in landowner redevelopment
meetings• Re-enter smart grid business leveraging qualifications
as an electrical construction company and a successful
track record• Also seek to enter new, expanding businesses, such as HEMs.
¥1.0 billion (in 3 years’ time)

Medium- tolong-term(1) Geothermal heat pump
(2) Small-scale geothermal power generation(3) Smart cities(1) Concession(1) Region creation projects

17IV-4. Progress in Post Solar Development Business (2)Receipt of order for first project with full-scale expansion from next fiscal year
Size of agricultural engineering market

COMSYS Group civil engineering businessCurrent ﬁscal year budget: approx. ¥240.0 billion
Future work volume on the increase, partly due tobusiness environment, including TPP prospects

Expand business ﬁeld from communication related
civil engineering work into diverse sectors

Promotion of agricultural village development program accompanying
formulation of Japanese Ministry of Agriculture, Forestry and Fisheries’
Measures to Establish and Preserve Agricultural Production Infrastructure
Aimed at Strengthening Competitiveness and Developing National Resilience• Development of larger farms and multi-functionality for farming land
• Earthquake-prooﬁng• Repair and updating
Water conservation facility maintenance and rationalization projects
Irrigation and drainage improvement projects• Communication related civil engineering work
Construction of Japan’s telecommunications infrastructure after WWII
Track record in underground installation of electrical cables from ducts andcable tunnels• Water supply and sewerage work
2011 ﬁrst order received in Tokyo ››› Rank A in 2014
• General civil engineering
Capital tie-up with Kawanakajima Kensetsu ››› Kawanakajima’s trackrecord in slope construction, etc.

Leverage extensive civil engineering track record toenter agricultural engineering market where expansion is expected
Participate
in bidding

Win ﬁrst
project
Successful bid for ﬁrst project(Kanto Agricultural Administration
Ofﬁce: ¥100 million)

Acquire know how
through construction
project work

Improve overall performanceappraisal score based on
actual business performance

Gain stableordersAim for at least
three projects a year18

IV-5. Profit Improvement at Ecosystem Japan Group
Generating definite profit amid challenging market environment

Net Sales(Remarks)• Decline in demand for residential solar (due to increase in rateof consumption tax, abolition of subsidy, etc.)• Impact from pending grid connections, etc.

(Unit: ¥100 million)[Measures to increase sales]• Strengthen sales of smart house products suchas storage batteries• Expand solar installation business for publicdisaster-prevention facilities• Strengthen the construction and maintenanceof non-Ecosystem Japan solar-power systems• Enter electric power retail business

135

120

110

130
[Measures to reduce expenses]

60
Operating
Income• Reduce sales promotion expenses

2

2

4

7

• Review salary payment structure• Revise workflow and leverage IT-3Mar. 2015
Results• Streamline organization

Mar. 2016
2Q Results

Mar. 2016
TargetMar. 2017
TargetMar. 2018
TargetNote: Amortization of goodwill not included.

19

V-1. Additional Measures for Shareholder Returns
Retire treasury stock for ¥7.5 billion
and acquire additional treasury stock for ¥3.0 billion(Unit: ¥100 million)

Retirement ofapproximately
5 million shares

Additional
acquisition of
2 million shares

M&A targets<Areas of ecological innovation>• Energy business (wood biomass, geothermal)• Geothermal heat pump business-75

Acquired 50

Additional 30

Treasury Stock

Retirement

Acquisition(Note 1)

(Note 2)500
33.58 million shares(23.0%)››› Air conditioning and heat-related equipment
installation companies<Areas of urban revitalization innovation>

Applicationn • Road-related business (removal of utility poles, road paving, etc.)• Water and sewerage business

455
45

425
28.61 million shares(20.3%)[Share price] Calculated at 1 share = ¥1,500, figures in parentheses show
percentage of treasury stock holding

30.61 million shares(21.7%)››› Road construction companies and water supply
construction companies<Areas of community revitalization innovation>• 2020 Tokyo Olympics-related work (establishment of venues,
transportation networks, etc.)• Development of area around Shinagawa Station››› Air conditioning and electrical equipment
installation companies<Industry restructuring>

Proactively expand business areas
compatible with existing operations
September 30
Number of shares issued

Beforeretirement
145.97
million shares

November 30– March 31 (expected)

After retirement
141.00 million shares

Results of Main Recent M&As Conducted through Share Exchange• Central Building Services (April 23, 2014)• Kawanakajima Kensetsu (September 30, 2014)• Toa Kenzai (August 31, 2015)• Nippon After Kogyo (scheduled for December 1, 2015)
Notes: 1. 4,977,886 shares to be retired
2. Acquisition period from November 9, 2015 to March 31, 201620

V-2. Shareholder Returns Policy (Dividends and Acquisition of Treasury Stock)(Unit: ¥100 million) 200

Total return ratio to exceed 70% due to acquisitionof additional ¥3.0 billion in treasury stock
Net Income(Target)

150

100
167

163
132
50

95

30

Additional
acquisition

50

Acquiredtreasurystock

39

Dividends

170

80

75

35

30

40

25

25

24

29

March 2011

March 2012

March 2013

March 2014

March 2015

March 2016
(Planned)

Interim

¥10

¥10

¥10

¥10

¥15

¥15

Year-end

¥10

¥10

¥10

Ordinary dividends: ¥10+
Commemorative dividends: ¥5

¥15

¥20

Consolidated Payout Ratio

27.1%

36.0%

18.7%

18.4%

21.0%

23.1%

Total Return Ratio
Dividends + treasury stock
Net income

58.3%

77.7%

48.7%

66.9%

66.2%

Number of sharesof treasury stockat the end of the period

15.43
million shares

18.90
million shares

22.74
million shares

28.04
million shares

31.32
million shares(As of September 30, 2015)

ROE

6.1%

4.4%

7.9%

9.4%

9.0%

—

Dividends per
Share(annual)

30

71

¥15

52.6%
70.2%
(Note)

33.58
million shares

Note: 4,970,000 shares scheduled to be retired on November 30, 201521

— 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 inachieving 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: http://www.comsys-hd.co.jp/