Presentation of Performance for the First Half
Fiscal Year Ending March 31, 2018

November 10, 2017

Contents
I . Overview of Performance for the First Half of the Fiscal Year Ending March 31, 2018
1. Highlights of the First Half Financial Statements
2. Details of Orders Received by Segment
3. Details of Net Sales by Segment
4. Details of Operating Income
5. Status of Contract Backlogs
II . Trends at Principal Carriers

3
4
5
6
7

1. Trends in NTT Fixed-Line Related Business2. Trends in NTT Mobile Business3. Trends in NCC BusinessIII . Full Year Forecasts for the Fiscal Year Ending March 31, 20188
910

1. Full Year Forecasts for the Fiscal Year Ending March 31, 2018
IV . Medium- to Long-Term Targets

11

1. Medium- to Long-Term Targets
2. Group Strategies for Achieving Medium- to Long-Term Targets
3. Initiatives Aimed at Topline Expansion (1)Initiatives Aimed at Topline Expansion (2)

12
13
14

4. Promotion of Future Structural Reform
V . Shareholder Returns Policy
1. Shareholder Returns Policy (Dividends and Acquisition of Treasury Stock)

16
17
18

I-1. Highlights of the First Half Financial Statements
Orders received and sales remained strong, while profit also increased
Performance

Performance inprevious term

Percent of Net Sales Percent of Net Sales

Orders Received

Net Sales

Gross Proﬁts
Selling, Generaland Administrative
Expenses
Operating Income

1,930

1,786

Comparisons withthe previous term
Difference

Revised Target
Percent of Net Sales

+144

1,750

Comparisonswith forecasts
Difference+180(Reference)
Initial Forecast(Unit: ¥100 million)

Remarks

Percent of Net Sales

1,650

1,521

1,322

+199

1,500

+21

1,400

208

165

+43

195

+13

175

13.7%

12.5%

+1.2 p.p.

13.0%+0.7 p.p.

12.5%

111

102

+8

110

+1

100

7.3%

7.7%

-0.4 p.p.

7.3%

0.0 p.p.

7.1%

97

63

+34

85

+12

75

6.4%

4.8%

+1.6 p.p.

5.7%+0.7 p.p.

5.4%

Orders Received
Despite the downturn in reaction to significant increases in the previous ﬁscal year
for maintenance work in the NTT ﬁxed-line
related business and construction negotiation processes for NTT Mobile, orders
received recorded an all-time high as theyremained strong in all segments. There
were also positive effects from the consolidation of Kando, which joined the Group in
the second quarter of the ﬁscal year.

Net Sales
Although non-carrier related business was
below forecasts, carrier-related businessremained strong, so total net sales of bothbusinesses achieved forecasts.

Operating Income
Recurring Proﬁt
Net Income
Attributable to
Owners of Parent

99

64

+35

87

+12

77

6.6%

4.9%

+1.7 p.p.

5.8%+0.8 p.p.

5.5%

68

41

+26

60

+8

50

4.5%

3.1%

+1.4 p.p.

4.0%+0.5 p.p.

3.6%

On completion of a large volume of projects carried forward, the structural reformand productivity improvement measures
implemented to date have demonstrated
positive results, and a signiﬁcant increasein operating income was thus achieved.

Notes: 1. Figures are rounded down to the nearest whole unit.
2. The Company revised the forecast consolidated performance ﬁgures for the ﬁrst half of the ﬁscal year ending March 31, 2018 in “COMSYS HD Announces Revision of Performance Forecasts” on August 4, 2017 (Available in Japanese only).
3. The all-time high for orders received in a ﬁscal half year up until now was ¥178.6 billion recorded in the ﬁrst half of the ﬁscal year ended March 31, 2017.
4. p.p. = percentage points3I-2. Details of Orders Received by Segment
Orders received remained strong in all segments and significantly exceeded forecasts(Unit: ¥100 million)

Comparisons with
the Previous Term

+144(+8.1%)

Comparisonswith Forecasts• Decrease due to elimination of effect• of inclusion of projects carried over at• the time of consolidation of TOKYO• HOSOH KOGYO CO., LTD.
• Increase in solar construction projects• (EPC)

NTT-AccessDecrease in reaction to significant
increase in maintenance projects inprevious fiscal year
NTT-Mobile
Decrease due to front-loading ofnegotiation processes in previous
fiscal year

1,786

NTT-G
-5.6%

NCC
+40.0%

-55

+49

ᴾ

SocialSystem-Related
and Other+30.6%

SocialSystem-Related
and Other+10.2%+121+47(+10.3%)
IT
+1.2%

+3
Increase in solar construction
projects (EPC)

IT+11.5%

+30

Kando
+84

• Increase in urban development• and public-sector solution projects• Increase in alliance business• Increase in software develop• ment projects

NCC+32.2%+41• Increase in au base station• construction projects• Increase in measures taken for• better reception of TV waves

1,930• Increase in au base station• construction projects• Increase in measures taken for• better reception of TV waves

Performance in Previous Term

+180

Performance

NTT-Access
Increase due to front-loading ofgeneral construction
NTT-Network
Increase due to acquisition of data
center projects
NTT-Mobile
Increase due to front-loading of
700MHz and 3.5GHz base station
construction projects

NTT-G+10.2%+87

1,750 ᴾ

Target4

I-3. Details of Net Sales by Segment
Steady progress in carrier-related work and forecasts achieved(Unit: ¥100 million)

Comparisons with
the Previous Term

Comparisonswith Forecasts

Disparity with forecasts
at time of consolidationof Kando+199(+15.1%)• Increase due to consolidation of• new subsidiaries• Decrease in solar construction• projects other than mega-solar• Increase in au base station• construction projects• Increase in measures taken for• better reception of TV waves

NCC+46.9%

NTT-Gᴾ+8.0%+46

SocialSystem-Related
and Other-5.1%

SocialSystem-Related
and Other+28.1%+21NCC+21.7%+26

Decrease in solution
business (including
manufacturer-related)(+1.5%)
NTT-G
+3.4%

+26

• Increase in measures taken for• better reception of TV waves

IT
+8.3%
Kando
+84

• Increase in software develop• ment projects

-11

-19

+77

+17

IT
-4.9%

1,521

NTT-Access
Increase in maintenance work
NTT-Network
Increase due to early completion ofmaintenance work
NTT-Mobile
IIncrease due to front-loading of 700MHz and3.5MHz-band base station construction work

1,500

+58

1,322

Performance in Previous Term

NTT-Access
Increase in maintenance work
NTT-Network
Increase due to early completion ofmaintenance work
NTT-Mobile
Increase in 700MHz and 3.5MHz-band basestation construction projects

Performance

Target5

I-4. Details of Operating Income
Significant increase in profit due to substantial rise in sales and increase in productivity
Main measures to increase productivity• Standardization of workflow and centralization of operations• Optimum assignment of personnel through full utilization of IT• Operation support through Group personnel mobility improvement

Comparisons with
the Previous Term

+34(+54.8%)Gross Profits

SG&A

Structural
Kando
Stock-related
reformconsolidation expenses
and increase expenses
in productivity
-3
+10

+12
(+14.8%)

SG&A

+1

+2

Impact ofincrease in
sales

Structuralreformand increase Impact ofin productivity increase in
sales
+11

+2

+31

97

Operating Margin(4.8%)

Comparisonswith Forecasts

Gross Profits

+12

63

(Unit: ¥100 million)

85

Operating Margin(6.4%)

Operating Margin(5.7%)

Performance

TargetKando+10Performance in Previous Term

6

I-5. Status of Contract Backlogs
Contact backlogs increased due to rise in orders received
for solar construction work (EPC) and recorded all-time high(Unit: ¥100 million)

1,782

Despite increase in net sales, work carried forward increased significantly due to strong orders received

+408

1,477
1,373

1,321
+464

981

144
48

201

IT

75

NCC

900

NTT

437

1,013
186

319

SocialSystem-Related
and Other

403

+339

415

604

280

62

136
50

133
39

119
42

824

711

749

558

500

Beginning of Term

End of First HalfFY March 2016

Beginning of Term

End of First HalfFY March 2017

Beginning of Term

End of First HalfFY March 20187

II-1. Trends in NTT Fixed-Line Related Business
NTT East and NTT West Capex

NTT
EAST
NTT
WEST

1,026

5,100

2,738

Optical fiber
collaboration

2,894

2,500

Optical fiber
collaboration

1,975

1,560

945 2,741

1,214

1,030

(First-Half) (Full-Year)
Mar. 2016(First-Half) (Full-Year)
Mar. 2017307(First-Half) (Full-Year Target)
Mar. 2018

First-half

489
Results
Mar. 2016

990

523

538
Results
Mar. 2017

510

516

NTT
WEST

859
Optical fiber
collaboration

2,005

1,117

2,085
340
156

+184

Mar. 2016

Mar. 2017

Optical fiber
collaboration

Optical fiber
collaboration

532

702

Optical fiber
collaboration

161

341

Mar. 2016

Mar. 2017480

Results Target
Mar. 2018

COMSYS Group materials: Simple total for five companies; NTT Engineering business–Access+78

Optical fiber
collaboration

Mar. 2018(Second Quarter)

No. of SoftBank Hikari subscriptions

359

918

888

418

1,167

171

+188

Mar. 2016

Mar. 2017

436
+77

486

Mar. 2018(Full-Year Forecast)

Note: Number of subscriptions is cumulative and includes Hikari Collaboration.

(Unit: ¥100 million)

484

1,066

1,530

Orders Received at COMSYS Group (NTT −Access)Second-half

NTT
EAST

Optical fiber
collaboration

2,600

1,061

1,925

Optical fiber
collaboration

Source: Financial results briefing materials of NTT, NTT Docomo, and SoftBank

973(Unit: 10,000 lines)

No. of DOCOMO Hikari subscriptions

5,479

2,940

1,770

No. of FLET’S Subscriptions (including Hikari Collaboration)

Net increase

5,834

2,240

(Unit: ¥100 million)

Mar. 2018(Second Quarter)

NTT Group• Although NTT Group overall capital investment forecast is in line with previous fiscal year at ¥1.7
trillion, there is a decrease of ¥55.5 billion in capital investment in regional and mobile
telecommunications.
• Capital investment forecast for NTT East and West for the fiscal year ending March 31, 2018 was
down ¥37.9 billion from the previous fiscal year, but pace of progress exceeded the previous
fiscal year as of end of first quarter. (1Q in FYE March 31, 2017: ¥88.3 billion, compared to 1Q in
FYE March 31, 2018: ¥100.6 billion)

No. of FLET’ S subscriptions (including optical fiber collaboration)• Net increase in number of FLETS subscriptions forecast at 800,000 in line with previous fiscal
year, but while actual increase in the first quarter of the fiscal year ended March 31, 2017 was
260,000, the increase in the first quarter of the fiscal year ending March 31, 2018 was only
240,000.

COMSYS Group• Despite declining year on year due to a downturn in maintenance work, such as road-paving
repairs, in reaction to the significant increase in the previous fiscal year, orders received achieved
forecasts due to the front-loading of general construction.
• Because capital investment at NTT East and West had progressed significantly compared with
forecasts as of the end of the first quarter, performance in the second half is a concern.

8II-2. Trends in NTT Mobile Business
NTT DOCOMO capex(Unit: ¥100 million)

Capital Expenditure Trends

5,971
209

2,460

Other
(Smart Lifebusiness, etc.)

84

Communications
business

2,376

LTE Network

-271

5,700
330 +50

123

5,370 -50

PREMIUM 4G
788Mbps, Japan’s highest data rate
Provided to 195 cities nationwide

69,700 stations

2,553

Mar. 2017

Mar. 2017

Mar. 2018

Mar. 2018(First-Half)(Full-Year)(First-Half)(Full-Year Target)(Unit: ¥100 million)

716
650

First-half

170,900 stations

Premium
4G-enabledbase stations
86,300 stations

2,676
5,762

Orders received at COMSYS Group (NTT −Mobile)

Second-half

LTE base stations
161,900 stations

334

585
360
300

316

356

Results
Mar. 2016

Results
Mar. 2017

322

285

Results Target
Mar. 2018

FYE March 31, 2016

FYE March 31, 2017
(First-Half)

Source: NTT DOCOMO Results Briefing Materials

NTT DOCOMO• Financial results for first half of the fiscal year ending March 31, 2018 recorded sales growth andprofit decline.
Reason is increase in operating expenses, including network-related expenses (fixed asset
retirement expenses, etc.).
• No change to total capital investment for year, but capital investment in communications
business on downward trend, falling ¥5.0 billion from initial forecast• Capital investment for communications business up to first half rose ¥17.7 billion year on yearwith progress rate of 47.4% (up 6.3 points)

COMSYS Group• Although orders received declined year on year due to a downturn in reaction to front-loading of
3.5GHz-band construction negotiation processes, orders received surpassed forecasts due to anincrease in 700MHz and 3.5GHz-band base station construction projects.
• Sales increased year on year and compared with forecasts due to completion of large volume of
projects carried forward.
• Capital investment at NTT DOCOMO has progressed significantly compared with forecasts, sosecond-half performance is a concern.

COMSYS Group materials: Simple total for five companies; NTT Engineering business–Mobile9II-3. Trends in NCC BusinessKDDI Capex (payment)(Unit: ¥100 million)

Softbank Capex (Telecommunications business in Japan)(Unit: ¥100 million)

5,300

+107

5,193

3,985
+780

3,205

2,461
1,839 ‒

1,061

(First-Half) (Full-Year)
Mar. 2017

First-Half Full-Year Target
Mar. 2018(First-Half) (Full-Year)
Mar. 2017

Source: KDDI Financial Performance Briefing Materials

Orders Received at COMSYS Group (NCC)

267
Second-halfFirst-halfFirst-Half Full-Year Target
Mar. 2018

Source: SoftBank Group Securities Report and Financial Performance Briefing Materials

KDDI(Unit: ¥100 million)

310

285

1,263

• Capital investment forecast was ¥530.0 billion, up ¥10.7 billion year on year, and cumulative
total up to first half end was ¥246.1 billion (progress rate: 46.4%)• Going into the second half, 700MHz and 3.5GHz-band base station construction work is
expected to move into top gear with increase in work volume anticipated.

SoftBank

180

162

140

127

123

Results
Mar. 2016

Results
Mar. 2017171• Capital investment forecast in the domestic communications business was ¥398.5
billion, up ¥78.0 billion year on year, and total up to the first half end was ¥126.3
billion (progress rate: 31.7%)• Going into the second half, an increase in 700MHz and 3.5GHz-band base station construction
work and national roll out of Massive MIMO, 5G Project, etc. expected

COMSYS Group

130

Results Target
Mar. 2018• Significant increase in both orders received and sales due to increase in base station
construction work and measures taken for better reception of TV waves• Going into the second half, orders received and sales growth expected as 700MHz and3.5GHz-band base station construction work moves into top gear

COMSYS Group materials: Simple total for five companies; NCC Engineering business10

III-1. Full Year Forecasts for the Fiscal Year Ending March 31, 2018
Aiming to achieve full fiscal year forecasts and further growth through greater construction efficiency(Unit: ¥100 million)

Orders Received

Net Sales

Gross Proﬁts

Selling, General and
Administrative Expenses

Operating Income

Recurring Proﬁt

Net Income Attributable to
Owners of Parent

FY March 2017
Performance

FY March 2018
Revised Target

Percent of Net Sales

Percent of Net Sales

3,701

3,900

Comparisons withFY March 2017
Difference(Reference)FY March 2018
Initial Forecast

ActionPercent of Net Sales

+198

3,600

Orders Received
The strong orders received in the carrier-related
business in the ﬁrst half of the ﬁscal year was duein large part to front-loading from the second half of
the ﬁscal year, and the recoil from that is a concern
for the second half. In the non-carrier business, wewill maintain aggressive marketing activities withthe aim of achieving the full ﬁscal year forecast.

3,341

3,800

+458

3,500

457

520

+62

475

13.7%

13.7%

0.0 p.p.

13.6%

206

235

+28

205

6.2%

6.2%

0.0 p.p.

5.9%

250

285

+34

270

7.5%

7.5%

0.0 p.p.

7.7%

253

291

+37

275

7.6%

7.7%

+0.1 p.p.

7.9%

144

200

+55

185

4.3%

5.3%

+1.0 p.p.

5.3%

Net Sales
With the aim of further increasing sales, we will
promote the completion of a large volume of projects
carried forward through centralization of backyard
operations and efficient utilization of humanresources within the Group.

0perating Income
We will aim for an all-time high through maximizationof the effects of the IT platform, structural reform
and measures to improve productivity in addition tosales growth.

Notes: 1. The Company revised the forecast consolidated performance ﬁgures for the ﬁscal year ending March 31, 2018 in “COMSYS HD Announces Revision of Performance Forecasts” on August 4, 2017 (Available in Japanese only).
2. Figures are rounded down to the nearest whole unit.
3. p.p. = percentage points

11IV-1. Medium- to Long-Term Targets
Achievement of medium-term targets by
the fiscal year ending March 31, 2020, and forecasting further expansion– Further expansion in non-carrier business through bottoming of existing business and continuation of M&A strategy –Medium-Term Targets
Net Sales: At least ¥400.0 billion

Non-Carrier Related+ ¥73.3 billion

Operating Income: At least ¥30.0 billion
Increase in net sales from fiscal
year ended March 31, 2014

Carrier-Related- ¥24.6 billion
0
Net Sales: ¥331.3 billion
Operating Income: ¥27.5 billion

AC
NW
MB
NCC

BreakdownSocialSystem-Related
and OtherIT

M&A

Net Sales: ¥380.0 billion
Operating Income: ¥28.5 billion

Organic
GrowthWhile carrier-related businesshas decreased, non-carrier
related business has grown

(50%)

(50%)

¥166.0 billion(43.7%)¥214.0 billion(56.3%)

Growth strategies aimed at achievementof medium-term targets• Expand sales and profit through business company system• Promote new renewable energy business• Increase productivity, including work-style innovation• Continue M&A strategy¥238.6 billion(72.0%)FY March 2014

Non-Carrier Related Sales Ratio: 50%+ ¥48.7 billion¥92.7 billion(28.0%)Start forMedium-Term Targets

Further
Expansion

COMSYS WAY a
FY March 2015

FY March 2016

COMSYS VISION 2020
FY March 2017

FY March 2018
TargetFY March 202012

IV-2. Group Strategies for Achieving Medium- to Long-Term Targets
Aiming for optimization of CHD Group overall through business company system
Principal Business Areas of Each Group Company
NipponCOMSYS-G
NTT
Engineering

SANCOM-GṼ

NCC
Engineering

TOSYS-G

TSUKEN-G

Ṽ

Ṽ

CJS-G

Ṽ

Ṽ

Ṽ

Ṽ

Social SystemRelated and Other

Ṽ

Ṽ

Ṽ

Ṽ

– Pursue new system that works across inter-company barriers –Maximize the advantages of centralization and concentration based on theidea of treating each business field of the entire Group as one company
while cementing the distinctive characteristics of each company.

Ṽ

IT Solutions

Introduce Virtual Business Company System

ṼIT-Related Business Company
Social System-Related Business Company

Marketing Strategy

Enhance Competitiveness• Establish and mutually verify marketing• strategy through common analysis methods• Share project information• Share know-how for technical proposal• examinations• Share know-how for gaining high• construction evaluations

Estimate System• Enhance overall computation• capabilities by integrating• estimate systems and sharing• estimate data

Backyard Operations

Shared Companywide
Marketing Strategy Concepts
Resources
Database• Centralize and optimize outsourcing and• procurement of supplies and equipment• (increase profit margin)

Human Resource
Development• Resolve shortages of engineers and• qualified personnel with personnel• mobility scheme• Establish environment to facilitate acquisition of• engineer qualifications by increasing opportunities• for young engineers to gain project credentials

Pursue maximized resource utilization and topline expansion13

IV-3. Initiatives Aimed at Topline Expansion (1)Outlook for renewable energy businessResidential Solar BusinessSolar Power Construction Business (EPC)
Mega-solar orders received peaked
Secure orders received through diverse solar projects

Expectation of recovery in demand due to improvement
in market environment(Unit: ¥100 million)
100

Orders Received and Sales Forecasts for EPC Business
50

0

FY March 2017
Results
Net Sales

0

Orders Received

100

Net Sales

200

Orders Received(Unit: ¥100 million)

FY March 2018

FY March 2019

FY March 2020

Solar Power Generation (IPP) Business
Secure stable sales and profit as stock business

FY March 2017
Results

FY March 2018

FY March 2019

FY March 2020

(Unit: ¥100 million)
30

Diverse Solar Power Generation
10• Commercial farm-type solar
0

Renewable Energy Mix
Car Port-Type• Solar and wind
• Solar and biomass• Supply systems utilizing solar• and hydrogen energy

Net Sales

Solar Sharing

Orders Received

20

Floating-TypeFY March 2017
Results

FY March 2018

FY March 2019

FY March 2020

New Renewable Energy Business
Offset decline in mega-solar through expansion of new areas
Biomass

Small-Scale Wind Power Generation14

IV-3. Initiatives Aimed at Topline Expansion (1)Promoting new renewable energy business
Biomass Generation Business

Small-scale Wind Power Generation Business– Start first project, utilize IPP know-how in EPC –– Acquired compliance certification* in Julyand launched full-scale construction project –Makurazaki Biomass Energy LLC
Established*Certification by Nippon Kaiji Kyokai (ClassNK) that turbine performance conforms to standards (NK-type certification)

October 2017 (business operation to commence October 2020)

SWP-19.8kW

Power generation scale 1,990kW (less than 2MW classified as small scale)
Feed-in tariff

Average ¥36/kWh: unused material (¥40) and bark (¥24)

Period20 years

Total operating expenses Approx. ¥2.7 billion
Forecast revenue
from power sales

Approx. ¥500 million/year

Forest resources
centered on Makurazaki

Makurazaki Biomass Resource LLC(70% invested by Maeda Sangyo)
Collect• BarkFuel manufacturing company• Raw timber
SupplyInvestment stake (30%)

Business Plan

Fuel

Makurazaki Biomass Resource LLC(100% by Nippon COMSYS)

Kyushu ElectricPower Co., Inc.

About small-scale wind power generation• Turbine diameter no more than 16m (rotor surface area: maximum 200m2)• Generating capacity: Less than 20kW
• Feed-in tariff: ¥55/kWh• Period: 20 years

30(Unit: ¥100 million)

FIT
Sell entire
volume of power

20

0

Net Salesacquiring IPP business know-how and plant construction trackrecord and leveraging our strengths in civil engineering, construction,and end-to-end electricity construction.

Orders Received

10
Striving to develop new customers for biomass EPC projects by

FY March 2018

FY March 2019

FY March 2020

FY March 2021

15

IV-3. Initiatives Aimed at Topline Expansion (2)Response to digital transformation
Striving to expand cloud, IoT, and IT platform business leveraging COMSYS strengths
COMSYS Strengths

Sales Plan in Solution Business Sector
StrongAlliancesOne-stop
Solutions

AdvancedEngineer

COMSYSStrengths

Nationwide
Construction
Capabilities(Unit: ¥100 million)

530

Over
1,000 Client
Companies

430

Enhanced
MaintenanceFunctions

FY March 2018 FY March 2019 FY March 2020 FY March 2021
– DELL/EMC and Nutanix –– Cloud Business –– IoT Business –DELL/EMC top rank Titanium certification

Three-company collaboration plan comprising
Nippon COMSYS, TOSYS and Microsoft

Nippon COMSYS and Ecomott Inc. collaboration

Nutanix
Premier Consulting Partner certification

To cloud via optical and LTE circuit
Alarm

ServerSAN

Storage

Hyper-Converged Infrastructure
Network and storage
required for converged
infrastructure areintegrated into server
box using software
Server+Network+
Storage

Collaboration with Microsoft

Conventional converged infrastructure

Cloud server

Consulting
Client[ Service menu ]Skype for Business
Cloud PBX planning service
Skype for Business
Cloud PBX integration service
Skype for Business
Cloud PBX managed service

COMSYSGroup
joint
proposal

Construction

Operation
Inform each device16IV-4. Promotion of Future Structural Reform
Aiming to increase productivity and secure diverse human resources
through promotion of work style innovation
Work Style Innovation
Secure Diverse Human Resources

Increase Productivity
Centralize Operations

Systemization

Establish In-House Environment

Centralize shared Group operations

Streamlining

Create diverse ways of working

Standardize work flow

Automation

Change employee awareness

Review Work Flow
Work inventory and process selection
Focus on high-value-added operations
In preparation

Centralization of
backyard operations

Centralize operations that can be simplified

Upgrading of IT platform

New personnel system

Utilization of the elderly

Flextime

Teleworking

Utilization of midcareer employment

Acquisition of engineers
through M&As

Computerization of indirect operations

In development
In trials

i Construction

Wearable terminals

3-D processing of
measurements(Drone/Laser scanner)

Safety measures,computerization of manuals(Smart glasses)

Use of AI
In development for introduction in photograph inspection operations

Implemented

Centralization of AC
area free operations

Centralization ofoperation centers17V-1. Shareholder Returns Policy (Dividends and Acquisition of Treasury Stock)
Planning to acquire additional ¥3.0 billion of treasury stock making total to ¥8.0 billion
Net Income(Target)

200
[167]

150
30
Additional

200

100
163

132
50

80

167

75

154 80144

50Treasury

44

58

Total
dividends

80

stock
(35)
Acquired acquisition

40
24

29

35

March 2013

March 2014

March 2015

March 2016

March 2017

March 2018
(Planned)

Interim

¥10

¥10

¥15

¥15

¥20

¥25

Year-end¥10

Ordinary dividends: ¥10+
Commemorative dividends: ¥5

¥15

¥20

¥20

¥25

Consolidated Payout Ratio

18.7%

18.4%

21.0%

25.6%

30.8% [ 26.6% ]29.0%

Total Return Ratio
Dividends + treasury stock
Net income

48.7%

66.9%

66.2%

77.2%

85.6% [ 74.0% ]Number of sharesof treasury stockat the end of the period*

23.01
million shares

28.31
million shares

31.41
million shares

30.24
million shares

31.86
million shares

25.02
million shares(Ownership Ratio)(15.8%)(19.4%)(21.5%)(21.5%)(22.6%)(As of September 30,2017)

ROE

7.9%

9.4%

9.0%

7.9%

7.3% [ 8.3% ]—(Unit: ¥100 million)

Dividends per
Share(annual)

0

¥15

56.5%
69.0%

(17.7%)*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.

18

— 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/