Highlights of Financial Statements
Fiscal Year Ended March 31, 2008

May 27, 2008

Contents

1. Consolidated Statements of Income (Comparisons with the Previous Term)

2

2. Consolidated Statements of Income (Comparisons with Forecasts)

3

3. Consolidated Balance Sheets

4

4. Consolidated Cash Flows

5

5. Trends in Important Financial Indicators

6

6. Target Values and Highlights of the Business Plan for the Fiscal Year Ending March 31, 20097

1. Consolidated Statements of Income (Comparisons with the Previous Term)(Unit: ¥100 million)

Item

Performance in Performanceprevious term
this term

DifferencePercentage
difference

Main reasons for increase/decrease

3,365

3,275-90-2.7%• NTT-related (-181), NCC (+79), IT solutions (+35), Construction (-23)

2,950

2,891-59-2.0%• Cost of sales ratio (From 87.7% to 88.3%; up 0.6 percentage point, Slight reduction of fixed costs)

Gross Profits414

383-31-7.5%• Gross profit margin (From 12.3% to 11.7%; down 0.6 percentage point)

Selling, General and Administrative Expenses

222

220-2-0.9%• New internal systems (+3.5), Reductions in advertising expenses and other costs (-5.4)

Operating Income

192

162-30 -15.6%

Other Income

1921210.5%

Other Expenses

022—211182-29 -13.7%• Recurring profit margin (From 6.3% to 5.6%; down 0.7 percentage point)

209-11 -55.0%• Gain on sales of fixed assets -3.5: Previous term 7.9 (Sale of land in Shibuya)• This term 4.4 (Sale of former employee dormitory site)• Gain on sale of investment in securities -5.4: Previous term 6.0 This term 0.6-29 -80.6%• Write-down of investments in securities -3.6: Previous term 5.5 This term 1.9• Loss on disposal of fixed assets -2.4: Previous term 2.8 (Demolition of the Koenji Building) This term 0.4• Loss on impairment of fixed assets -3.3: Previous term 4.2 (Real-estate for sale) This term 0.9• Special payments on employees’ retirement benefits -0.7: Previous term 3.4 This term 2.7• Effects of factors that occurred only in the previous fiscal year -18.2:
Payment on disengagement of funded pension plan of a subsidiary 7.9, Valuation loss on investments 4.5
Allowance for doubtful receivables 3.3, Valuation loss on inventory 2.5

Net Sales
Cost of Sales

Recurring Profit

Extraordinary Profit

Extraordinary LossNet Income367123116-7-5.7%• Operating margin (From 5.7% to 5.0%; down 0.7 percentage point)• Amortization of negative goodwill +3.2: Previous term 12 This term 15.2
• Foreign exchange gains -1.7: Previous term 1.7 This term 0.0• Foreign exchange losses +1.6: Previous term 0.0

This term 1.6• Net profit margin (From 3.7% to 3.6%; down 0.1 percentage point)22. Consolidated Statements of Income (Comparisons with Forecasts)(Unit: ¥100 million)
RevisedTargets

Performance
this term

Difference

Percentage
difference

3,200

3,275

752.3%• NTT-related (+35), NCC (+26), IT solutions (+8), Construction (+4)

2,830

2,891

612.2%• Cost of sales ratio (From 88.4% to 88.3%; down 0.1 percentage point)

Gross Profits

370

383

133.5%• Gross profit margin (From 11.6% to 11.7%; up 0.1 percentage point)

Selling, General and Administrative Expenses

2202200—

Operating Income150

162

128.0%

Other Income2321-2——

Other Expenses

32-1—

—

170

182

127.1%• Recurring profit margin (From 5.3% to 5.6%; up 0.3 percentage point)

Extraordinary Profit

69350.0%• Gain on sales of fixed assets (Sale of former employee dormitory site)

Extraordinary Loss

67116.7%• Write-down of investments in securities

1051161110.5%• Net profit margin (From 3.3% to 3.6%; up 0.3 percentage point)

Item(November 2, 2007)

Net Sales
Cost of Sales

Recurring Profit

Net IncomeMain reasons for increase/decrease—• Operating margin (From 4.7% to 5.0%; up 0.3 percentage point)33. Consolidated Balance Sheets
ASSETSLIABILITIES AND NET ASSETS(Unit: ¥100 million)(Unit: ¥100 million)

-58

-58

2,299

2,241

2,299

2,241(-70)(-125)

Current Assets

1,598• Accounts receivable—trade +99• Cash and cash equivalents -181
• Accumulated cost ofconstruction in progress

Current
Liabilities• Salaries and otheraccounts payable-32717• Income taxes payable-29647-1589

1,473-25(-22)

Long-Term
Liabilities

111• Negative goodwill• Accrued severance indemnities -4(+67)• Tangible fixed assets

Fixed Assets

701(+34)+32(Construction bases and buildings)• Intangible fixed assets+21

Net Assets

768

1,470

• Retained earnings+92• Treasury stock, at cost

-50

1,504

(New internal systems, etc.)• Investment securities+6*Equity ratio
From 63.4% to 66.5%

As of March 31, 2007

As of March 31, 2008

As of March 31, 2007

As of March 31, 2008

4

4. Consolidated Cash Flows(Unit: ¥100 million)+10
Cash Flows fromOperating Activities-111
Cash Flows from
Investing Activities• Income before income taxes
and other adjustments
to net income+184• Decrease in inventories+26• Increase in receivables—trade -95• Acquisition and sale of assets• Cash and cash equivalents
paid for income taxes-91• Decrease in payables—trade-32

-90

-83

Construction bases and buildings
New internal systems• Acquisition of securities-28• Collection of long-term loans+6424

Cash andCash Equivalents
at Beginning of Year

Cash Flows from
Financing Activities• Acquisitions of treasury stock-50• Cash dividends paid-23• Repayment of long-term debt-9-182242

Cash andCash Equivalents
at End of Year(As of March 31, 2008)(As of March 31, 2007)*Interest-Bearing Debt

¥400 million¥70 million
55. Trends in Important Financial Indicators
RISE IN NET SALS AND COST OF SALESCOST EFFICIENCY(Nippon COMSYS Non-Consolidated)(Nippon COMSYS Non-Consolidated)(Unit: ¥100 million)(Percentage difference)
Net Sales(-222)

2,377(%)

Gross Profits
(-26)

2,118

¥211.8 billion

100

2,155 -9.3%

259

Share of Various Costs within Total Cost of Sales¥192.2 billion

233
Cost of Sales(-196)

1,922 -9.3%

1,513

Subcontracting costs(-166)

1,347 -11.0%

224

Materials costs(-21)

203 -9.4%

231

Personnel costs(-8)

223 -3.5%

150

Operating costs(-1)

149 -0.7%

75

71.4%

Subcontracting costs ratio-1.3 percentage points

70.1%

10.6

Materials costs ratio -0.1

10.5

10.9

Personnel costs ratio +0.7

11.6

Operating costs ratio +0.7

7.8

50

Breakdownof costof sales
25

7.1

0
FY March 31, 2007(*Including costs of subsidiary businesses)

FY March 31, 2008

FY March 31, 2007

FY March 31, 2008

STOCK-RELATED INDICATORS(COMSYS Holdings)

PERX

ESP=PBRX

BSP

Common Stock Price

Ratio of Foreign
Shareholders(Price/Earnings Ratio)(Primary Earnings per Share)(Price/Book Value Ratio)(Book Value per Share)(March 31)(March 31)[ FY March 31, 2008 ]10.4 times¥83

0.8 times¥1,091

¥864

25.4%

[ FY March 31, 2007 ]14.5 times¥87

1.2 times¥1,033¥1,265

28.6%

6

6. Target Values and Highlights of the Business Planfor the Fiscal Year Ending March 31, 2009
(Unit: ¥100 million)

Performance
this term(FY March 2008)Forecasts forthe next year
(FY March 2009)

Net Sales

3,275

3,30025

Gross Profits383383—(11.7%)(11.6%)(-0.1 percentage points)

Item(Gross Profit Margin)

DifferenceHighlights

Operating Income

162

140-22(Operating Margin)(5.0%)(4.2%)(-0.8 percentage points)

182

150-32(5.6%)(4.5%)(-1.1 percentage points)

116

85-31

(3.6%)(2.6%)(-1.0 percentage points)

Recurring Profit(Recurring Profit Margin)

Net Income(Net Profit Margin)• NTT-related (-60), NCC (+29), IT solutions (+37), Construction (+20)• Virtually flat

• Although COMSYS worked to reduce all expenses, strategic anticipatory
investments in enhancing operational efficiency and increasing
productivity (new internal systems, training of IP engineers, etc.) resulted
in a significant rise in selling, general and administrative expenses.

• Reduction in amortization of negative goodwill (-¥0.6 billion ), reduction
in interest received (-¥0.2 billion, a significant decline in funds), etc.

• In addition to the above, last fiscal year’s tax effect of subsidiaries will
not emerge this term (-¥0.7 billion)

7

For further information, please contact:

IR Department
Telephone: 03-3448-7000
Facsimile: 03-3448-7001
Mail: chd-ir@comsys.co.jp
URL: http://www.comsys-hd.co.jp/