Presentation of Performance
Fiscal Year Ended March 31, 2011
May 18, 2011

— Contents —I. Overview of Performance
1. Highlights of Performance for the Fiscal Year Ended March 31, 2011

1

2. Details of Net Sales by Segment for the Fiscal Year Ended March 31, 20112

3. Details of Operating Income for the Fiscal Year Ended March 31, 20113

4. Results of Measures Aimed at Strengthening Operational Infrastructure

4

II. Response to the Great East Japan Earthquake — Concentration on Restoration of Telecommunications Plant and Equipment

5III. Full Year Forecasts for the Fiscal Year Ending March 2012

6

1. Main Reasons for Forecast Income Growth (Operating Income)7

IV. Telecommunications Carrier Business Trends
1. NTT Business Investment Trends and Measures

8

2. DOCOMO Business Investment Trends and Measures

9

3. NCC Business Investment Trends and Measures

10

V. Deepening Structural Reform and Entering New Business Fields
1. Structural Reform and Incubation

11

2. Review of Operation Structure of Regional Businesses

12

3. Innovation in New Business Fields

133-1. Water Recycling (Grey Water) Business (Biological Water Treatment)
4. Pursuit of Management Integration Synergy with TSUKEN Corporation
VI. Status of Treasury Stock and Policies for Returns to Shareholders

14
15
16

I-1. Highlights of Performance for the Fiscal Year Ended March 31, 2011
The amount of orders received met the forecast figures, but net sales and income fell shortof forecasts due to the impact of the Great East Japan Earthquake and other factors.

(Unit: ¥100 million)
Orders Received

Net Sales

Operating Income
Operating Margin

Performance

2,943

Comparisonswith forecasts

Comparisons withthe previous term

Topics+8+96

Orders Received and Net Sales(+0.3%)(+3.4%)@ Orders received and net sales rose substantially

3,154

-46

+224

(-1.4%)(+7.6%)

117

-14

-8

3.7%

-0.4 percentage points-0.6 percentage points

Recurring Profit

121

-14

-10

Recurring Profit Margin

3.8%-0.4 percentage points-0.7 percentage points

Net Income

95

-6

+25

Net Profit Margin

3.0%-0.2 percentage points+0.6 percentage points–1–year-on-year thanks to a contribution from the
management integration with TSUKEN Corporationand to construction work in the Indefeasible Right ofUser (IRU) and terrestrial digital broadcasting
business. While orders received tracked with
forecasts, net sales underperformed forecasts due tosuch factors as the decline in investment bytelecommunications carriers and the Great East
Japan Earthquake.

Income@ Despite efforts to raise productivity and reduce costs
through structural reform measures, operating income
fell below forecasts due to the review of contract unit
prices and the continuing contraction of small-scaleconstruction work, as well as sales from construction
work in progress deferred due to emergency work forearthquake reconstruction.

I-2. Details of Net Sales by Segment for the Fiscal Year Ended March 31, 2011
#OMPARISONS WITH
the Previous Term

#OMPARISONSWITH &ORECASTS+224(+7.6%)-46(-1.4%)
Construction+5.8%
IT+65.1%+27(Unit: ¥100 million)
3TRONG CARRIER PERFORMANCEINCLUDING #!46

NTT-G
-3.0%

-1

3,154

-2

+7

Construction
IT
-0.2%
-0.3%

-50

3,200

NCC
+1.9%

NTT businesss 0RIORITY ON )25 PROJECT COMPLETION
s $EFERRED DUE TO EARTHQUAKE

NTT-G
-1.1%

2,930

-18

$/#/-/ BUSINESSs $ECLINE IN CAPITAL EXPENDITURE BY CARRIERS
s $EFERRED DUE TO EARTHQUAKE

+257
NCC
-10.3%-42*Impact of earthquake roughly ¥3 billion-¥5 billion-AJORITY ARE )25 PROJECTSFY March 2010
Performance

FY March 2011
Performance–2–

FY March 2011
Forecast

I-3. Details of Operating Income for the Fiscal Year Ended March 31, 2011
Improvement in profit due to structural reform measures was insufficient
to offset decline in net sales and deterioration in gross profit ratio(Unit: ¥100 million)

131

Impact ofearthquake-14(-10.7%)-7
Decline in net sales
and deterioration ingross profit ratio

Reduction in
SG&A expenses

-22

+15

117

s $ETERIORATION IN MARKET ENVIRONMENT(Calls from customers for reductions in unit price of contracts and costs,
due to intensifying competition)

FY March 2011
Initial Forecast

FY March 2011
Performance–3–I-4. Results of Measures Aimed at Strengthening Operational Infrastructure
Implementation of measures to streamline assets
and rationalize personnel cost structure
Measures to Streamline Assets

One-off write down of software assets

Fiscal Year Ending March 2012

Extraordinary loss:¥3.8 billion

Internal core systems, including comstar: ¥3.4 billion
NTT business project management systems: ¥0.4 billion

Bulk sale of idle real estate to developers
Former Nippon COMSYS Takaido TS
23 properties, including former Nippon COMSYS Kantonaka Branch¥0.7 billion YoY
reduction in depreciation
and amortization

Extraordinary loss:¥1.8 billion(Forecast: ¥1.3 billion)

Offset by ¥7.1 billion in
extraordinary income fromnegative goodwill due tomanagement integration with TSUKEN

Measures to Rationalize Personnel Cost Structure

Reduction in fulltime employees using career change support system
170 Group employees resigned as of March 31, 2011 (forecast: 500 employees)
Implementation of reemployment assistance for applicants

Extraordinary loss:¥1.2 billion(Forecast: ¥1.0 billion)

Reduction of 340 non-fulltime employees (contract and temporary staff)

Approx.
reduction of
510 employees

Review of post-retirement reemployment system(Forecast: 500 employees)

Establishment of new fulltime and part-time working systems combined withpublic pension in addition to existing system (60% of salary at retirement age)
–4–

Fiscal Year Ending March 2012¥1.4 billion reduction
YoY in personnel costII. Response to the Great East Japan Earthquake— Concentration on Restoration of Telecommunications Plant and Equipment
Damage at Telecommunications Carriers Immediately Following the Earthquake
NTT EAST
Fixed line telephones(Number of non-operational lines)

NTT Communications

880,000 subscriber lines
510,000 FLET’S Hikari lines(Approximately 65,000 telephone
poles and 6,300 km of telephoneline were swept away or damaged)
17,000 lines, including telephones
and data

KDDI397,000 lines, including telephone

SOFTBANK TELECOM

32,200 lines, including telephone

NTT DOCOMO
Cellular phones
KDDI (au)(Number of non-operational base stations)
SOFTBANK MOBILE

6,720 base stations
3,680 base stations
Reconstruction work in Yamada-machi, Iwate Prefecture, where about 3,000 homes
were destroyed and 800 people are dead or missing.

3,800 base stations

Status of Action by COMSYS Group
Core Operating Company

Telecommunications Carrier

Main Region of Activities

Nippon COMSYSNTT EAST
NTT Communications
NTT DOCOMOTOSYSNTT EASTTSUKENNTT EAST

Includes Kuji and Miyako areas of
Iwate Prefecture

SANWA COMSYSKDDI (au)
SOFTBANK

Includes areas of Iwate Prefecture
and Ibaraki Prefecture

Includes Kuji and Miyako areas of
Iwate Prefecture, Sendai area of
Miyagi Prefecture, and Kesennuma
and Ishinomaki areas of Miyagi
Prefecture
Includes Kuji and Miyako areasof Iwate Prefecture, Sendai and
Sennan area of Miyagi Prefecture

Total Number of People

3,116 people

62 people

Details of Activities
Includes installation of special public telephones
and temporary dedicated lines, repair of damaged
equipment, surveys of earthquake damage totelecommunication equipment, inspections andsurveys of cable tunnels, reconstruction of detour
relay lines outside major cities, inspection andreconstruction of cellular phone base stations, andinstallation of prefabricated base stations.

27 people

50 people

Includes inspection and reconstruction of cellular
phone base stations, and installation of prefabricatedbase stations.

The COMSYS Group has contributed ¥100 million in victim assistance to the Japanese Red Cross Society, with donations raised from employees together with matching
contributions from each of the group companies.

–5–III. Full Year Forecasts for the Fiscal Year Ending March 2012
Decline in net sales, but growth in full-year earnings compared withthe previous fiscal year due to sustained and deepened structural reform(Unit: ¥100 million)
Orders Received

FY March 2011
Performance

2,943

FY March 2012
Targets

Comparisons withFY March 2011

2,960

+17

Net Sales

3,154

3,080

-74

Gross Profits

310

328

+18

9.8%

10.6%

+0.8 percentage points

117

123

+6

3.7%

4.0%

+0.3 percentage points

Gross Profit Margin

Operating Income
Operating Margin

Recurring Profit

121

128

+7

Recurring Profit Margin

3.8%

4.2%

+0.4 percentage points

Net Income

95

73

-22

Net Profit Margin

3.0%

2.4%

-0.6 percentage points–6–

Remarks

Orders Received and Net Sales
Amid downward trend in network infrastructure
investment by NTT and DOCOMO and difficult economic
conditions, net sales down YoY as marketingpromotions aimed at expanding orders received will not
be enough to offset special demand for IRU projects inprevious fiscal year.

IncomeEarnings are forecast to grow due to improvement in
profit margin resulting from sustained and deepened
structural reform measures.
(Reference: Gross Profit Margin)
FY March 2011 First Half: 8.9% Second Half: 10.4%* The forecasts do not include reconstruction projects
for telecommunications infrastructure due to theGreat East Japan Earthquake.
* The ¥2.2 billion YoY decline in net income ismainly due to the extraordinary income (gain on
negative goodwill) and extraordinary loss (measures
aimed at strengthening the business base) that arosein the year ended March 2011.

III-1. Main Reasons for Forecast Income Growth (Operating Income)
Forecast growth in operating income due toenhanced profitability from deepening of structural reform(Unit: ¥100 million)

Ensuring reliable profitability through structural reform measures

Decrease in
net sales

117

-24

Business kaizen(improvement) effectImprovement in
profit ratios

TSUKEN 1st half

+21

+6

123

+4
Increasein profits+5s 3TREAMLINING OF ASSETS SOFTWARE ETCs 2ATIONALIZATION OF PERSONNEL COST STRUCTUREs )MPROVEMENT IN PROFIT MARGIN DUE TO STRUCTURAL REFORM MEASURESs )MPROVEMENT IN PROFIT MARGIN DUE TO IMPROVEMENT IN PRODUCT MIXFY March 2012
Targets

FY March 2011
Performance–7–IV-1. NTT Business Investment Trends and Measures
NTT East FY2012 Capital Expenditure

Capital Expenditure Trends at NTT East and West
(Unit: ¥100 million)

8,452(Source: NTT IR material)

4,300(Unit: ¥100 million)

7,950

7,796

4,100

Revised forecast

NTT EAST
Initial forecast
NTT WEST
Investment infiber optics
3,220

Mar. 2010

Impact of Great East Japan Earthquake on NTT East
Investment infiber optics
2,950

Mar. 2011

Investment infiber optics
3,000

Mar. 2011 Results

Mar. 2012 Forecast

Outlays for emergency work
Approx. ¥20 billion

Mar. 2012 Target

Market Trends

Approx. ¥20 billion(Source: NTT IR material)

Capital expenditures
Approx. ¥20 billion

Activity Measures
Secure profit in existing infrastructure business
Strengthen strategies to improve productivity

While declining gradually in the medium term, this includes strategic investment
in expanding demand for fiber optic services, maintaining quality including work
to strengthen maintenance, and reductions in future installation costs.

s 3TRENGTHEN PROJECT MANAGEMENT NEW CALCULATION METHODS NATIONWIDE
consolidation of network businessMerge business offices (branches)
Pursue group synergy (coordinate Nippon COMSYS and TSUKEN
operations)

Capital expenditures (construction) related to the reconstruction of plant andequipment damaged by the Great East Japan Earthquake as well as fullreconstruction and the upgrading and restoration of reliable services is roughly
estimated to reach at least ¥40 billion in FY2012 and beyond. Including outlays
for emergency work for earthquake recovery, at least ¥60 billion in total costs
have been announced. However there are many uncertainties.

Innovation to expand business domains
Maintenance and operations business
Home network business, etc.
Measures to rehabilitate plant and equipment damaged by the Great
East Japan Earthquake as well as fully reconstructing andupgrading and restoring reliable services–8–

IV-2. DOCOMO Business Investment Trends and Measures
Capital expenditure related to
the Great East Japan Earthquake

DOCOMO Capital Expenditure Trends(Unit: ¥100 million)(Unit: ¥100 million)

6,865

7,050

6,685

Impact of construction
work in progress deferred
due to the earthquake

R&D, etc.

6,685
Networks(COMSYS estimates)

Mar. 2010

Mar. 2011

Mar. 2011
Results

Mar. 2012 Target(Source: NTT DOCOMO IR material)

Reconstruction, newdisaster countermeasures
Approx.
300

7,050

Upgrade of telecommunications quality
Augmentation of appropriate plant andequipment to accommodate expanding traffic

Approx.
100

Extension of Xi network

Reconstruction ofearthquake affected areas(Full reconstruction)
Approx. ¥10 billion

Further promotion oftransition to IP networks

Implementation of new
disaster countermeasures
Approx. ¥20 billion

Strengthen“security and safety” measures

Mar. 2012
Forecast

Market Trends

Activity Measures

Capital expenditure focused on augmenting network infrastructure, including
expanding smart phone sales (increased 3G traffic), and extending LTE (Xi)service area.

Shift to a more competitive business structure and expand market share
Reinforcement of a negotiation consulting structures #OMPLETE ,4% WORK AND WORK FOR EXPANDING SMART PHONE DEMAND

Examine reorganization of consolidated subsidiaries
In addition, total capital expenditure is expected to rise by about ¥40 billion YoY,
with ¥10 billion in other outlays to rehabilitate plant and equipment damaged by
the Great East Japan Earthquake and implement new disaster countermeasures.

Innovation for expansion of business domains
Expand area servicing operations
Proactive development of IP businesss )NFRASTRUCTURE NODES )0 RELATED PLATFORM DEVELOPMENT AND EXPANSION
of maintenance operations

Expectations that PDC demolition and removal construction will fully commencein the fiscal year ending March 2013 and, in principle, will be completed within
the fiscal year

Reconstruction of plant and equipment damaged by the Great East
Japan Earthquake and responding to new disaster countermeasures–9–IV-3. NCC Business Investment Trends and Measures
KDDI Capital Expenditure Trends

Softbank Capital Expenditure Trends(Unit: ¥100 million)

5,154(Unit: ¥100 million)

5,000

4,570

4,417

4,205

Mobile2,229

Fixed-line

Total
Capital ExpenditureMar. 2010

Mar. 2011

Mar. 2012 Target

Mar. 2010

Great East Japan Earthquake-related
Capital Expenditure(Source: KDDI and Softbank IR materials)
Mar. 2011

Mar. 2012KDDI (au)Extraordinaryloss¥17.6 billion

Capitalexpenditures¥20 billion

SOFTBANK

Extraordinaryloss¥14.4 billion

Capitalexpenditures¥10 – 20 billion* Includes ¥6.2 billion related to telecommunications networks

Mar. 2011Market Trends

Mar. 2012 Target

Activity Measures

KDDI (au) mobile telecommunications is reaching the completion phase forconstruction of base stations due to reorganization of frequencies, and the scaleof orders is expected to decrease. However, LTE construction will fully commencein the fiscal year ending March 2012.

Guarantee security and quality for KDDI and increase market share
Step up pace through development of LTE project
Secure additional orders for WiMAX, etc.
Cut costs through multi-skilling of workers within an area
Measures for CATV business

Softbank is planning further aggressive investment, primarily in mobile
telecommunications. Inquiries through vendors are also on the rise, andlarge-scale projects are moving forward, following on from last fiscal year.

Expand orders received in response to Softbank’s growth strategy
Receive orders for steel tower construction by stepping up paceof large-scale projects
Establish project structure for steel tower construction

In connection with the earthquake, KDDI is investing ¥20 billion in increasing thenumber of base stations as well as installing new trunk telecommunications
routes connecting each area of Japan
Softbank will invest ¥10 – 20 billion in connection with the earthquake in thefiscal year ending March 2012.
(From Nihon Keizai Shimbun, April, 27, 2011, May 10, 2011)

Measures for plans to reconstruct and rebuild plant and equipment
damaged in the Great East Japan Earthquake– 10 –

V. Deepening Structural Reform and Entering New Business Fields
1. Structural Reform and Incubation
Continuing Structural Reform and Expanding into New Business Fields
in a Challenging Business Environment
Structural Reform – Fiscal 2010

Fundamental Concept

COMSYS Innovation 2010 and innovation
projects at group company

Building a company thatgenerates continuous profit

Business Kaizen Strategy(Rationalization of personnel cost structure, streamlining of assets)

COMSYS WAY
Maintain and upgrade construction
technological capabilities

Continuing and Deepening Structural Reform Fiscal 2011
Strengthen market competitivenessStrengthen operational infrastructureEnter New Business Fields
Implementation of Incubation Strategy
Strategic
advance investment

I. Continue to raise advance investment in entering new business fields,
and establish businesses in 3 – 5 years
II. Offset decline in sales of existing businesses by restructuring peripheral businessIII. Promote M&A– 11 –Create new
business modelV-2. Review of Operation Structure of Regional Businesses
Establishing an Efficient Operational Structure That Transcends Area Boundaries

Area A

Area B

Nippon COMSYS A Branch

Nippon COMSYS B BranchGroup Company B BranchMarketingMarketingMarketingTaken up by
shared company

Sharedmanagement operations

Project
Business
partners

Sharedmanagement operations

Integration
Business
partners

Taken up by
shared company

Project
Business
partners

Sharedmanagement operations

Integration
Business
partners

Project

Business
partners

Business
partners

Review of operating structure for COMSYS and group companies completed in fiscal 2011 in “Group Innovation 2010”

Integration of project divisions shows the benefits of consolidation as well as improving the quality of project management
Integrated management of business partners that transcends areas improves work efficiency
Centralization of management operations reduces costs– 12 –

V-3. Innovation in New Business Fields
Establishment of New Business Promotion Ofﬁce Headedby President to Promote Commercialization
Incubation Plan through the ﬁscal year ending March 2012
Business Segment

NTT & NTT DOCOMO
Business

Sector

Maintenance and operation business
Access system: train required personnel (80 staff in ﬁve years), full-scale launch of whole area fault repair andequipment management operations
Mobile system: shift from spot to area maintenance, expand contracted operations for area maintenance

Urban infrastructure business, including water resources
Construction BusinessTrain engineers and qualiﬁed personnel to enter water resources business (includes white, grey and black water) andinfrastructure business

Existing and Ongoing Incubation Strategies
Business Segment

SectorCurrent status

NTT Business

New in-home business

Receiving steady orders for on site operations, LAN construction for ﬁber optic TV and large-scale B
FLET’S projects as a result of setting up the home-visit support center

IT management services

Struggling against severe market competition despite establishing integrated customer center anddeveloping maintenance and management services

IT Business

Expanded server system business
lines

Construction Business

Orders received steadily rising in areas such as expansion of cloud computing menu and virtualtechnology servicing, but challenges remain for proﬁt

Environment and energy
conservation, including solar
power

Training of qualiﬁed personnel made steady progress. Increase in orders received for mega-solar power
generation systems.

Maintenance for CATV operators

Providing extensive servicing drawing on resources in specialist ﬁelds. Commercialization completed, tobe treated as a regular operation moving forward– 13 –

V-3-1. Water Recycling (Grey Water) Business (Biological Water Treatment)
Biological water treatment systems are environmentally strategic and simultaneously
achieve client cost reductions by reusing grey water, including kitchen waste water
Business Model

What is Biological Water Treatment?
White water(tap water)

Selling point

Kitchens,
wash basins,bathrooms

NBS*=> reduction in water charges > cost of using grey water facility
COMSYS constructs water treatment facility and provides servicing for customer
Facility transferred to COMSYS Tsusan Co., Ltd., and leased backGrey waterproduction

NGN

Equipment cost + servicing cost + profit recovered from client over years of agreement

Grey water source

Building owner

Biologicalwater
treatment

Toilet waste
water
Cleaning waste
water, etc.

Equipment and servicing agreement

Asset transfer

Nippon COMSYS
Lease

Marketing and project collaboration

S Company

Reduction

Black water (sewage)
treatment

COMSYS Tsusan

Equipment and construction,
servicing and maintenanceEfforts Aimed at Commercialization*Natural Bio System (NBS) is a new biological water treatment technology developed by S Company

Build up track record and train engineers for new business
Project planned for buildings owned by NTT Group

Breakdown of Wastewater Reuse by System Type
(Source: Water Resources in Japan, Ministry of Land, Infrastructure, Transport and Tourism)
Breakdown bysystem type

Rain water systems

District circulation
systems

Wide-area
circulation systems

Individual
circulation systems

3,424 systems

1,513 systems

170 systems

633 systems

1,108 systems

100%

44.2%

5.0%

18.5%

32.4%

Roll out marketing based on technology proposals
Collaboration with company that developed NBS

TargetIntroduce clean water network management system
Construction, operation and maintenance of remote monitoring system– 14 –

V-4. Pursuit of Management Integration Synergy with TSUKEN Corporation
STEP 1: March 2011
A comprehensive business management structure (Nippon COMSYS & SANCOM)
Establish collaborative system for two companies

Eliminate consolidated subsidiary branches

Consolidate common operations to shared company

Location integration

Completed
Fiscal 2011

STEP 2: March 2012
NTT Business Reorganization (Nippon COMSYS & TSUKEN)
Restructuring of NTT business operating structure in Hokkaido area
Nippon COMSYS(Hokkaido Branch)

Network system business partners

AccessNetwork

TSUKEN

Integration andreorganization

Access system business partners

CMS (group finance)

Integration of core systems

STEP 3: March 2013
Integrated operation management system for three companies (Nippon COMSYS, SANCOM & TSUKEN)
Construction integration

Organizational
consolidationand elimination

Individual customer-proposal sales and marketing system– 15 –

Location integration
Consolidation of common operations

VI. Status of Treasury Stock and Policies for Returns to Shareholders
Annual dividend of ¥20 per share planned for current fiscal year
as well with the basic policy of stable and consistent dividends
Treasury stock has been acquired by the Company for four consecutive years

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

Acquisition of treasury stock is based on acomprehensive consideration of COMSYSGroup performance, economic trends andshare price trends

15,027 thousand shares
Newly acquired portion
3,612 thousand shares(Approximately ¥3.0 billion)

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

Scheduled numberof shares held
16,124 thousand shares

Dividends per Share[ Interim ][ Year-end ]Consolidated Payout Ratio

Mar. 2009

Mar. 2010

Mar. 2011

Mar. 2012

¥20
¥10

¥20

¥20

¥20 (Planned)

¥10

¥10

¥10

¥10

¥10

¥10

36.2%

27.1%

35.6% (Planned)(including a ¥3commemorative dividend)

¥10
26.5%

– 16 –(FY)