Presentation of Performance for the First HalfFiscal Year Ending March 31, 2012
November 16, 2011

— CONTENTS —I. Overview of Performance for the First Half of the Fiscal Year Ending March 31, 2012
1. Highlights of the First Half Financial Statements

1

2. Details of the First Half Sales by Business Segment2

3. Details of First Half Operating Income

3

II. Forecasts for the Fiscal Year Ending March 31, 20124

III. Great East Japan Earthquake Recovery and Reconstruction Work
1. Comprehensive Reconstruction Work5

2. Disaster Countermeasures

6

3. Recovery and Reconstruction Work Orders

7

IV. Progress in Structural Reform Measures and Priority Initiatives
1. Sustained, More In-Depth Structural Reform

8

2. Major Structural Reform Measures
2-1. Management Integration Synergy in Hokkaido

9

3. New Initiatives
3-1. Promoting Incubation Measures103-2. Urban Infrastructure Development Business Activities

11

V. Status of Treasury Stock and Policies for Returns to Shareholders12I-1. Highlights of the First Half Financial Statements
Orders received substantially surpassed forecast figures;
Net sales and income were essentially in line with plans(Unit: ¥100 million)
Orders Received

Comparisons withthe previous termComparisonswith forecasts

Performance

1,446+76-16Net Sales

1,251-18+51

Gross Profits

115-3+7Gross Profit Margin

9.2%-0.2 percentage points+0.3 percentage points

Operating Income

20+1+3Operating Margin

1.6%+0.1 percentage points+0.2 percentage points

Recurring Profit

23+2+5Recurring Profit Margin

1.9%+0.2 percentage points+0.4 percentage points

Net Income

8-0+28Net Profit Margin

0.6%-0.1 percentage points+2.3 percentage points

TopicsOrders Received
Orders received substantially surpassed forecast figures duemainly to earthquake disaster-related recovery andreconstruction demand. Despite solid first-half performance
contributions from TSUKEN Corporation, orders received fellslightly below results of the same period of the previous fiscalyear. This was mainly due to the absence of the extraordinary
Indefeasible Right of User (IRU) business demand enjoyedduring the same period of the previous fiscal year.
* Please turn to the next page for details of net sales.

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

–1–

IncomeIncrease in operating income compared with the same periodof the previous fiscal year due to measures aimed atstrengthening the Group’s operational infrastructure(streamlining assets and rationalizing the structure ofpersonnel costs) implemented during the second half of theprevious fiscal year. Results essentially in line with plans.
* Quarterly net income climbed ¥2.8 billion compared to thesame period of the previous fiscal year. This was largely
attributable to the temporary extraordinary loss recorded
following the streamlining of assets (write-down of software) andother measures resulting from efforts to strengthen the Group’s
operational structure implemented during the previous fiscal year.
* Forecasts at the beginning of the fiscal year do not include
reconstruction projects for telecommunications infrastructure
resulting from the Great East Japan Earthquake.

I-2. Details of the First Half Sales by Business Segment
Comparisons withthe Previous Term

Comparisonswith Forecasts+51-18(+4.3%)(-1.5%)
NTT-G+15.2%

NCC-1.5%-2(Unit: ¥100 million)s .## CARRIER WORK BROUGHT FORWARDs )NCREASE IN CONSTRUCTION WORK AS A RESULTof earthquake disaster reconstruction

IT Construction+4.8% -28.9%+8-55+100s 3UBSTANTIAL REDUCTION IN $/#/-/s business constructions )NCREASE IN EARTHQUAKEs disaster-related reconstructions work in the NTT businesss )NCREASE IN ELECTRIC POWER
s operating processes (data centers)

Construction
IT+7.3%-10.5%

NCC+13.6%

NTT-G
-3.0%

-22

+19-23+71,251

1,270
Slump in the IT market; Increased
competition

1,200
Including first half performance
contributions from TSUKEN(¥19 billion)

Performance in Previous Term

* Earthquake disaster-related
reconstruction net sales
around ¥1.2 billion

Performance–2–TargetI-3. Details of First Half Operating Income
Increase in operating income after structural reform
and measures to strengthen the Group’s operational infrastructure(Unit: ¥100 million)

Comparisons withthe Previous Terms )MPACT OF A DECREASE IN NET SALES EXCLUDING CONTRIBUTIONS FROM 435+%. c BILLION
s $ECREASE IN INCOME DUE TO CHANGES IN THE STRUCTURE OF NET SALES PRODUCT MIX+3+2Amountattributable tothe streamliningof assets

Operating Margin(1.4%)

Comparisons with Forecasts+1Results ofstrengtheningContribution
the Group’s operational to incomeinfrastructurefrom TSUKEN(+0.2 p.p.)*

16*p.p. = percentage points(+0.1 p.p.)*20
Operating Margin(1.6%)

2EDUCTION IN
personnel costs
AND OVERHEAD
EXPENSES+5

Impactattributable tolower net sales-4

19
Operating Margin(1.5%)+6

Drop in net sales
Impact of changes
in the structureof net sales

Amountattributable torationalizing
the structureof personnelcosts-13
Results ofstructural reform+7+2

Performance in Previous Term

Performance–3–

TargetII. Forecasts for the Fiscal Year Ending March 31, 2012
Despite an upswing in demand due to an increase in earthquake disaster-related construction, full forecasts for the fiscal
year remain unchanged from estimates set at the beginning of the fiscal year owing largely to the slump in market demand(Unit: ¥100 million)
Orders Received

Performance inPrevious Term

2,943

(No changes in forecasts)

Comparisons withthe previous term

2,960

+17

Full Year Targets

Net Sales

3,154

3,080-74

Gross Profits

310328+18

Gross Profit Margin

9.8%

10.6%

+0.8 percentage points

117123+63.7%

4.0%+0.3 percentage points

Operating Income
Operating Margin

Recurring Profit

121128+7Recurring Profit Margin3.8%

4.2%+0.4 percentage points

Net Income

9573-22

Net Profit Margin

3.0%

2.4%

-0.6 percentage points

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

–4–Remarks

Orders Received and Net Sales
Despite expectations of an upswing in demand due toearthquake disaster-related reconstruction, full fiscal year
forecasts remain unchanged from estimates. While results
are anticipated to fluctuate on an individual business basis,
this is largely attributable to the significant projected decline
in orders received and net sales as a result of the slump incapital investment demand and increased competition, as
well as persistent uncertainty surrounding the state of future
operating conditions.
(* Please refer to the detailed data attached for revised orders
received and net sales forecasts by business)

IncomeWhile income is projected to rise due to an increase in NTT,DOCOMO and NCC construction, along with earthquake
disaster-related reconstruction, full fiscal year forecasts
remain unchanged from estimates. This recognizes thedownside risk of outsourcing and other expenses, which areexpected to hover at a high level, owing mainly to increased
business in the second half of the fiscal year.

III-1. Comprehensive Reconstruction Work
Building facilities that are resilient against disasterto ensure uninterrupted telecommunications services
Promote inland, small loop relay transmission lines

Relocating relay transmission lines underground below waterways
Building A

Building B

Route 2

Building A
Vertical shaft

Building B

Waterway

Vertical shaft

Ace mole construction method
Route 1
The nose section of ace mole equipment (cutter head)

Offices

Electric power facilities

Relocation of exchange offices to higher groundExchange of degraded batteries as a result of discharge

Waterproofing (building protection; protection of important offices
and rooms; installation of facilities at higher floors)

Installation of power generating equipment at important telecommunications
facilities in the three main disaster-stricken prefectures–5–III-2. Disaster Countermeasures
Large-zone base stations

Wireless transmission

Blackout

BlackoutLine disconnection

EngineCable-basedtransmission
Collapse

Blackout

Newly construct large-zone base stations in densely populated areas nationwide in addition to the network of standard base stations
Construct at about two locations in each prefecture for a nationwide network of 104 locations

Use highly earthquake-resistant buildings and steel towers

Large-zone method with a 360° radius of approx. 7 km (covering around 35% of the total population)

Promote both uninterruptible power and two route transmission lines

Promote uninterruptible power using engines

Shift to 24-hour batteries

DOCOMO and other building base stations (approx. 800 stations)

Steel tower base stations (approx. 1,100 stations)Base stations that need countermeasures (approx. 400 stations)
Uninterruptible
base stations(approx. 400 stations)Batteries
Batteries
Batteries
24 hours
10 hours
3 hours(approx. 90 stations) (approx. 90 stations) (approx. 220 stations)(Source: NTT DOCOMO data)

Base stations that need countermeasures (approx. 950 stations)
Batteries
24 hours(approx. 150 stations)–6–

Batteries
10 hours(approx. 530 stations)

Batteries
3 hours(approx. 420 stations)III-3. Recovery and Reconstruction Work Orders
Efforts toward recovery and reconstruction of telecommunication
facilities leveraging the comprehensive strengths of the Group(Unit: ¥100 million)

Type of Project

Details

First Half

Second Half

Total40

848Access

Relay transmission lines,
relocating relay transmission lines
underground below waterways,
base station establishment(telecommunications facilities), etc.

Network

Relay transmission lines,
base station establishment(telecommunications facilities),
electric power facilities, etc.

145Mobile

Relay micro-transmission lines,
shift to uninterruptible power,large-zone base stations, useof 24-hour batteries, etc.

151530NCC

Base station establishment(telecommunications facilities),
relay transmission lines, etc.

516* 61

2889Total* Includes emergency recovery construction totaling ¥1.5 billion–7–

New installation of optical fiber cables

Mobile facilities

IV-1. Sustained, More In-Depth Structural Reform
Promoting “COMSYS WAY” under a harsh operating environment— COMSYS WAY —Fundamental Concept

Sustained, More In-Depth Structural Reform
Maintain and upgrade construction
technological capabilities
Strengthen market competitiveness

Building a company thatgenerates continuous profit

Strengthen operational infrastructure

Promoting robust innovation measures
Producing maximum results by optimally interlocking individual measures
Strengthening project management by acting as prime contractor[ Pursue the shift toward IT devices] [ Workflow standardization ] [ Strengthen partner construction company management ][ Optimize personnel assignments ] [ Promote the early establishment of a new construction structure ] . . .

Increase productivity by realizing Group synergies[ Review of operational structure of regional businesses ] [ Promote structural reform of the DOCOMO business ][ Generate management integration synergies in Hokkaido ]Shift to a new earnings structure[ Implementation of incubation strategy ] [ Pursue a policy of selection and focus in the IT business ]–8–IV-2-1. Management Integration Synergy in Hokkaido
Reorganization of the NTT businesses of Nippon COMSYS and TSUKEN

NW-based
Integration andreorganization

Access July 2012

Nippon COMSYS(Hokkaido Branch)

Hokutoudensetsu

Tsuken Doutou Engineering

Access April 2012

Dououtsushin

Tsuken Dounan Engineering

Nippon COMSYS

April 2012 —SANCOM

TUKEN(Hokkaido Branch)
Responsible for the NTT group (NW)

Constructionstructure

July 2011: Four subsidiaries integrated into two companies

NW
Completed in October 2011

Comprehensive business management structure including SANCOM

Sales andmarketing system

Access-based

TSUKENNW July 2012COMSYS Hokkaido Engineering

In progress(Hokkaido Branch)

Responsible for the NTT group (Access)Responsible for NCC

Integrated construction operation management of three companies

Other measures
Integration of core systems April 2012

CMS (group finance) Completed in September 2011
Consolidation of common operations

Location integration–9–

Further integration and reorganization of Group companies

IV-3-1. Promoting Incubation Measures
Securing results in urban infrastructure development in the construction business
Status of First Half Incubation Measures
Business Segment

NTT & NTT DOCOMO
BusinessSector

Current Status

Orders received

New in-home businessEntering new onsite businesses that target carriers outside the NTT group in service
areas not currently covered; working toward uniform implementation of in-home LANconstruction¥0.2 billion

Maintenance and operationbusiness

Packaged order received for access system construction and maintenance in theNagano area (Omachi, Kiso);Packaged network system NTT group data center order received (construction andmaintenance); maintenance operations area expanded;
Proposal for expansion of mobile system maintenance areas in progress¥0.3 billion

IT management services

Cultivated new customers in the IT asset management business in collaboration withpartner companies;
Developed business in IT delivery services using partner companies as a basic model¥1.4 billion

Expanded server systembusiness lines

Developed business mainly in the electronic medical records market by bolstering
alliances with partner companies¥0.9 billion

Water Recycling(Grey Water) Business(Biological Water Treatment)

Proposal to NTT-related buildings; contract execution scheduled in the second half;Took steps to promote the acquisition of qualiﬁcations to expand orders received

Environment and energy
conservation, including
solar power

Selected potential sites for solar power generation facilities; proposed jointcommercialization to local government authorities and the corporate sector;
Put in place a prototype to simplify the panel installation process by developing a
new mounting; developed a string monitor (a system to detect solar cell anomalies)
in house

Urban infrastructure business,
including water resources

Urban infrastructure development business strong (please refer to the next page for a
detailed explanation)

IT Business

Construction Business– 10 –¥1 billion

IV-3-2. Urban Infrastructure Development Business Activities
Taking up the challenge of renewing earthquake-resistant facilities targeting the Tokyo metropolitan waterand sewage system, which are showing significant degradation
Expanding potential order domains and raising the amount of potential project orders
by increasing tender qualification credentials with the Bureau of Waterworks
FY March 2011 = C rank
FY March 2012 = B rank
Drainage pipes

Raise rank

< ¥0.2 billion

FY March 2014 = A rank

Raise rank

Drainage pipes + main pipes¥0.2 billion < < ¥0.4 billion

Drainage pipes + main pipes+ trunk lines¥0.4 billion <Activities toward commercialization
Expanding the contracting businessResponding to the Bureau of Waterworks’ emergency 10-year business plan to convert to water pipelines with earthquake-proof joints
Orders completed during the current year in excess of ¥0.7 billion; annual order target of ¥1.0 billion or more from the next fiscal year and beyond
Pay careful attention to future trends in connection with the packaged outsourcing of business to the private sector

Major project orders during the current fiscal year

First main pipeline project order received (Zenpukuji, Suginami Ward)
Destination pointOumekaido Ave.

[Metropolitan sewage system]
Reconstruction: Shinjuku 1-chome, Yotsuya 4-chome(May, ¥0.24 billion)[Metropolitan water system]
Drainage and main pipes, Zenpukuji, Suginami Ward
(July, ¥0.24 billion)[Metropolitan water system]
Drainage and main pipes JV, Wakasu 2-chome Koto Ward
(August, ¥0.42 billion * 70% = ¥0.29 billion)i St.

-dorwaenkaS
Entry pointuiousajkawSen

Sekicho 1-chome intersection
Bore diameter 700mm muddy water pressure system method L = 39.1m– 11 –

V. Status of Treasury Stock and Policies for Returns to Shareholders
Decision to acquire treasury stock (¥3.0 billion) for the fifth consecutive
fiscal year as a part of ongoing efforts to return profits to shareholders
Decision to acquire treasury stock for the fifth consecutive fiscal year
20,270 thousand shares

16,124 thousand shares

Newly acquired portion
5,250 thousand shares(Approximately ¥5.0 billion)

Use in implementing
management integration
with TSUKEN Corporation
8,351 thousand shares

15,027 thousand shares

9,193 thousand shares

Acquisition planned inthe current fiscal years   THOUSAND SHARESmaximums c BILLION MAXIMUM

Newly acquired portion
3,612 thousand shares(Approximately ¥3.0 billion)

Newly acquired portion
5,544 thousand shares(Approximately ¥5.0 billion)

Number ofshares held
16,074thousand shares

Newly acquired portion
4,143 thousand shares(Approximately ¥5.0 billion)

Mar. 2008

Mar. 2009

Mar. 2010

Mar. 2011

Mar. 2012

Dividends per Share

¥17

¥20

¥20

¥20 (Planned)[ Interim ]

¥7

¥20
¥10

¥10

¥10

¥10

[ Year-end ]¥10¥10¥10¥1036.2%

27.1%

35.6% (Planned)

Consolidated Payout Ratio

20.3%(including a ¥3commemorative dividend)

¥10
26.5%

Acquisition period:
November 10, 2011 toMarch 31, 2014

– 12 –(FY)