COMSYS Holdings Corporation

Annual Report 2012
Fiscal Year Ended March 31, 2012COMSYS WAY

Connecting People

with People
We help to connect people with people through theconstruction of communications infrastructure and facilities.
The construction services we provide range from large-scale
backbone networks to telephone line installation forhouseholds and mobile phone base station construction.

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NTT Information Telecommunications Engineering BusinessElectrical Communications Engineering BusinessConnecting People

with Society
To address issues such as global warming and environmental
preservation, we provide new energy and energy generationand conservation systems, including photovoltaic power
generation and biological water treatment solutions. We
also give back to society through environmental businesses,
including resource recycling operations.

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Connecting People

with BusinessWe provide low-cost, convenient network systems alongwith reliable user-friendly solutions to support thedevelopment of numerous companies and the realization ofan enriched society.

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IT Solutions BusinessProfile
COMSYS Holdings Corporation (the “Company”) was established as the holding company of the COMSYS Group on
September 29, 2003 through share transfers from three companies—Nippon COMSYS Corporation, SANWA ELEC Co., Ltd.
(now SANWA COMSYS Engineering Corporation) and TOSYS Corporation.
As of March 31, 2011, the COMSYS Group was made up of 50 subsidiaries and 9 affiliates, centered on 5 core operating
subsidiaries, specifically the above 3 companies and TSUKEN Corporation and COMSYS JOHO SYSTEM Corporation.
The COMSYS Group’s main businesses are electrical and telecommunications infrastructure construction services, whichmainly involve the construction of telecommunications infrastructure and electrical facilities, and other businesses, such as
the information processing-related business.

Our Mission
The COMSYS Group devotes every effort to bringing about a“smart, ubiquitous network society” to serve as the infrastructure ofa “sustainable society.” To this end, we intend to leverage ourposition as Japan’s No. 1 communications infrastructure construction
company in maximizing synergies across the whole Group to provide
high-quality technologies and services.

COMSYS WAY
The COMSYS Group is currently promoting structural reforms at each Group
company to achieve a lean management structure that can generate reliable earnings even in a harsh operating
environment.
Going forward, we will unite as aManagement Policies

Group to bolster our efforts to maintain

Management at COMSYS Group is based on the following threepolicies, and every effort is being made to achieve them.

call this initiative “The COMSYS WAY.”

and deepen our program of reforms. We

1.	Fortify further the COMSYS Group’s dominant position as Japan’s
No. 1 communications infrastructure construction company
2. Strive to maximize synergies across the COMSYS Group
3.	Aim to be a knowledge-intensive corporation by sharing know-how
through Group-wide IT systems

Our Group Formation

Nippon COMSYS
Corporation

SANWA COMSYSEngineering
Corporation

TOSYS
Corporation

TSUKEN
Corporation

COMSYSJOHO SYSTEM
Corporation

COMSYS
Shared Services
Corporation

FOR MORE INFORMATION

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President’s Message

President’s Message

12

Business at a Glance

14

Review of Operations
NTT Information Telecommunications Engineering Business

16

Electrical Communications Engineering Business18

IT Solutions Business20

Social System-Related Business and Other

24

Corporate Governance27

Corporate Social Responsibility (CSR)

28

Topics30

Financial Statements*

How to use

Consolidated Balance Sheets

32

Consolidated Statements of Income

33

Consolidated Statements of Changes in Net Assets

35

Consolidated Statements of Cash Flows36	
Summary of Business Results and Financial Data

Since its Establishment

Left-Click the tab at the
top of each page toreturn to Contents.

38

TopicsLeft-Click tabs at the righthand edge of the page tojump to the relevant section.

30

Corporate Social
Responsibility (CSR)

Information on Major Subsidiaries
Corporate
Governance

22

Information on
Major Subsidiaries

14

Review of Operations

08

Business at a GlanceContents

Information
COMSYS Holdings Information40

Our Group Formation

42

Investor Information

Information

Cautionary Statement with Respect to Forward-Looking Statements
Statements made in this annual report with respect to COMSYS Holdings’ plans and benefits as well as other statements thatare not historical facts are forward-looking statements, which involve risks and uncertainties. Potential risks and uncertainties
include, without limitation, general economic conditions in COMSYS Holdings’ markets, exchange rates, and COMSYS
Holdings’ ability to continue to win customers’ acceptance of its products, which are offered in highly competitive markets
characterized by continual new product introductions and rapid developments in technology.
* Compiled based on the content of COMSYS Holdings’ Annual Securities Report submitted in Japanese.

Financial Statements

38

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COMSYS Holdings Corporation
Annual Report 2012

To Contents

President’s Message

Hajime Takashima
President and Representative Director

We are working to build a corporate structure that consistently generates profits through sustained and more in-depth
structural reform.
Performance in Fiscal 2012
In fiscal 2012, ended March 31, 2012, Japan’s information and communications market saw
additional installation of the network infrastructure needed to meet the burgeoning traffic
volume accompanying an increase in smartphone users, along with investment in network
construction for high-speed, large-capacity communications standards such as Long Term
Evolution (LTE). In addition, there was steady progress on restoration and reconstructionof telecommunications infrastructure in the regions affected by the Great East Japan
Earthquake. Looking forward, there are also social requirements for information and communications technology to be used to achieve sustained economic growth as well as todevelop a disaster-resilient telecommunications network.
The COMSYS Group has worked to maintain and further deepen the COMSYS WAY, aseries of structural reforms pursued to date, with the aim of maintaining and upgrading its
technological construction capabilities, strengthening market competitiveness and bolstering
its operational foundation. At the same time, the Group made concerted efforts to enternew businesses in order to create a new growth strategy. Additionally, at the request of
telecommunications carriers, the COMSYS Group has actively worked on post-quake restoration and reconstruction of telecommunications infrastructure.

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COMSYS Holdings Corporation
Annual Report 2012

TSUKEN Corporation, the COMSYS Group saw a decrease in capital investment by privatesector companies, and the completion of IRU (Indefeasible Rights of Use)-related works asalthough orders received increased 1.2% year on year to ¥297,769 million, net sales decreased
6.2% year on year to ¥295,851 million. On the earnings front, we worked to improve productivity and reduce operating expenses as a part of our structural reform measures. In
addition, measures to strengthen our operational foundation implemented in fiscal 2011a sharp improvement in operating profitability, with operating income increasing 6.9% year
on year to ¥12,592 million. However, net income decreased 24.8% year on year to ¥7,173
million. This was mainly due to a special gain on negative goodwill associated with the
management integration with TSUKEN that had been recorded as extraordinary income in

Net Sales/Gross Profit Margin(Millions of yen)(%)

Information on
Major Subsidiaries

the previous fiscal year.

Review of Operations

had a positive impact on earnings for fiscal 2012. As a result, the COMSYS Group reported

Business at a Glancewell as preparation for the introduction of terrestrial digital broadcasting. Consequently,

President’s Message

Under these circumstances, despite the positive impact of management integration with

09

14

350,000

300,000

321,185

11.7%

11.7%

315,480

295,851

293,08612

11.2%

Corporate
Governance327,52610.5%
250,000

10
9.8%

n Net Sales (Left Scale)

08
n

09

10

11

12

8

Gross Profit Margin (Right Scale)Corporate Social
Responsibility (CSR)

200,000

Operating Income/Operating Margin

18,000

(%)

5.0

5.0%

Topics(Millions of yen)

4.9%

16,29816,00015,610

4.3%

4.3%

4.0

14,0003.7%

12,592

11,78508

n Operating Income (Left Scale)

09
n

10

11

3.5

12

3.0

Financial Statements

12,54012,00010,000

4.5

Operating Margin (Right Scale)

Information

10

COMSYS Holdings Corporation
Annual Report 2012

To Contents

Fiscal 2013 Outlook and Priorities Ahead
The information and communications market has seen strong business conditions due tothe rapid penetration of smartphones and tablet devices. Nonetheless, it has also observed
the entry of new business players as well as rapid change in technological innovation. As
a result, telecommunication carriers are facing fierce competition about acquiring customers.
Because their investment focus has shifted significantly from infrastructure to investment
in services, and also because of the downsizing trend in construction orders, the outlook
for orders in the telecommunications construction sector is anticipated to become increasingly challenging over the medium and long terms.
Looking ahead, we will strive to continue and deepen our series of structural reforms
under the COMSYS WAY. At the same time, we consider the reconstruction of telecommunications infrastructure and equipment in the earthquake-afflicted regions to be a key
priority. Accordingly, we will make Group-wide efforts to fulfill as many requests as possible
for reconstruction work. Given that ensuring the safety of employees and their families intimes of disaster is a top priority, we will also formulate and execute business continuity
plans (BCP) and related initiatives in order to meet the demands of customers. Vigorous
efforts will also be made to address disaster readiness, disaster mitigation, energy conservation and new energy initiatives, with the aim of establishing ourselves as a disaster-resilientgroup of companies.

Shareholder Returns
COMSYS Holdings views returning earnings to shareholders as an important management
priority. Our basic policy is to pay steady and continuous dividends linked to businessperformance. Based on this policy, in fiscal 2012, we paid an interim dividend of ¥10.00 yen
per share and a year-end dividend of ¥10.00, bringing total annual dividends to ¥20.00 yen
per share.
During fiscal 2012, we bought back 3,526 thousand of our own shares worth ¥2,999
million, with the aim of stepping up the return of earnings to shareholders and enablingflexible financial policies in response to changes in the business environment.
For fiscal 2013, we plan to pay the same total annual dividend of ¥20.00 per share(including a ¥10.00 interim dividend). We also plan to buy back up to ¥3.0 billion of ourown shares.

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COMSYS Holdings Corporation
Annual Report 2012

(Yen)

25

50
20.00

20.00

17.00

15

10

20.00

20.00
36.0%

36.2%

30

27.1%

26.5%
20.3%

20

5

10

08

n Interim Dividend (Left Scale)09
n Year-End Dividend (Left Scale)

10
n

11

12

0

Consolidated Payout Ratio (Right Scale)Acquisitions of Treasury Stock
Number of treasury stock (As of March 31, 2012):(Thousand shares)
5,544

5,250

4,386

4,000

3,612

3,526

11

12

Corporate
Governance

2,000

Information on
Major Subsidiaries

19,186,339 shares

6,000

0

Review of Operations

040

Business at a Glance

20

President’s Message

Dividends per Share/Consolidated Payout Ratio

11

08

09

10

of sales and earnings growth, increased operation efficiency, and unification of our business
operations. Mindful always of these three concepts, the COMSYS Group strives to enhance
corporate value and win the trust and admiration of all stakeholders through its

Corporate Social
Responsibility (CSR)

The philosophy of the COMSYS Group is based on the three key management pillars

performance.
security and quality standards, strengthening corporate governance, ensuring compliance,

TopicsIn addition, the COMSYS Group will strive to implement measures such as improving
enhancing risk management and implementing the Group’s code of conduct, while entrenching internal control systems.
We look forward to the ongoing understanding and support of all our stakeholders, as

September 2012

President and Representative Director

Information

Hajime Takashima,

Financial Statements

we endeavor to reach our goals.

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COMSYS Holdings Corporation
Annual Report 2012

To Contents

Business at a Glance
NTT Information Telecommunications
Engineering BusinessElectrical Communications
Engineering Business

Main Business

Main BusinessThis segment is mainly engaged in the construction ofThis segment constructs telecommunications and related

telecommunications infrastructure for the NTT Group,facilities for communication carriers other than the NTT

including the laying and installation of telephone lines,

Group. It also provides a wide range of services for gen-installation of exchange equipment, and construction oferal customers, including the design and construction of

wireless base stations. The segment is the COMSYS

electrical facilities for offices and other commercial build-Group’s core business and accounts for the largest shareings, public facilities, plants, condominiums and residen-of Group-wide sales.

tial houses.

Respective Areas of Business Operations of Group Companies

Respective Areas of Business Operations of Group Companies

NipponCOMSYSGroup

SANCOMGroupn

TOSYS GroupTSUKEN
Corporationnn

COMSYSJOHOSYSTEM
Group

NipponCOMSYSGroup

SANCOMGroup

TOSYS GroupTSUKEN
Corporation

n

n

n

n

New Orders Received/Net Sales

New Orders Received/Net Sales(Year Ended March 31, 2012)(Year Ended March 31, 2012)(Millions of yen)

(Millions of yen)n New orders received

61.8%

184,128n New orders received

18.1%

53,771n Net sales

60.8%

180,002n Net sales

18.2%

53,813Business Domains

Business Domains

Construction of NTT telecommunications infrastructure
Construction of DOCOMO telecommunications infrastructurennn

COMSYSJOHOSYSTEMGroup

 onstruction of telecommunications facilities (ordinaryCcompanies, government agencies, local authorities,­telecommunications carriers)n Construction of electrical facilitiesn Construction of C·C·BOX facilities, etc.
FOR MORE INFORMATION

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COMSYS Holdings Corporation
Annual Report 2012

To Contents

13
President’s Message

Social System-Related Businessand OtherMain Business

Main BusinessThis segment combines extensive expertise with cutting-This segment is engaged in general civil engineeringedge network technologies to provide comprehensive

works, disaster prevention facilities works, the construction

solutions services, ranging from developing optimal sys-of office buildings, warehouses, and factories, as well as

tems integration services plans optimized for customers’

businesses related to the environment such as solar powerbusinesses to providing maintenance services.

generation systems, energy conservation solutions, water

Business at a Glance

IT Solutions Business

Review of Operations
Corporate
Governance

Respective Areas of Business Operations of Group Companies

Information on
Major Subsidiaries

resources and other urban infrastructure businesses.

Respective Areas of Business Operations of Group Companies

SANCOMGroup

TOSYS GroupTSUKEN
Corporation

COMSYSJOHOSYSTEM
Group

NipponCOMSYSGroup

SANCOMGroup

TOSYS GroupTSUKEN
Corporation

n

n

n

n

n

n

n

n

n

New Orders Received/Net Sales

New Orders Received/Net Sales(Year Ended March 31, 2012)(Year Ended March 31, 2012)COMSYSJOHOSYSTEM
Group

Corporate Social
Responsibility (CSR)

NipponCOMSYSGroup

Topics(Millions of yen)

(Millions of yen)n New orders received

15.2%

45,199n New orders received

4.9%

14,670n Net sales

15.0%

44,503n Net sales

5.9%

17,531Business Domains

Development of software
Solutions business and other IT-related businessesnnn

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Information

Building construction
Environment (ecology) related constructionn Overseas businessn Civil engineering business (other than C·C·BOX)n Leasingn Other businessesnFinancial Statements

Business Domains

14

COMSYS Holdings Corporation
Annual Report 2012

To Contents

Review of Operations

NTT Information Telecommunications
Engineering Business
Strengthening initiatives to expand the maintenance and operation business, while
striving to generate profits by enhancing productivity through structural reforms

New Orders Received/Net Sales(Millions of yen)

200,000

150,000

100,000

50,0000

08

09

n New Orders Received n Net Sales

10

11

12

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COMSYS Holdings Corporation
Annual Report 201215
President’s Message

In the NTT access business and NTT network business, we

In the NTT access business, we have seen a slower net

have seen expansion in optical broadband services, with thisincrease in the number of subscribers to optical accesstrend accompanied by progress in the shift from fixed-line

services. Accordingly, we anticipate increasingly challenging

telephones to optical IP phones. In addition, following theconditions for capital investment in information telecom-

Great East Japan Earthquake, there have been stronger

munications infrastructure-related construction, a mainstay

expectations to build disaster-resilient telecommunications

business of the Group.

infrastructure.

In the NTT DOCOMO business, the volume of construc-equipment has progressed in response to the burgeoning

growth should be driven mainly by augmentation of basetraffic volume accompanying an increase in smartphonestation capacity accompanying the uptake of smartphones

users. Also, investments have been advanced in high-speed

and tablet devices; LTE service area expansion; dismantle-

and higher traffic volume-ready networks, such as Long Term

ment and removal of equipment for PDC (2G mobile

Evolution (LTE; 3.9G next-generation mobile phone com-

communications system) service, which ended on March

munication standard).

31, 2012; and work to augment signal strength between
subway stations. Nonetheless, we foresee increasingly
challenging conditions in terms of downsizing of construc-

In fiscal 2012, all Group companies made a concerted effort

tion projects and requests for price reductions from con-to conduct reconstruction work on communications infra-

struction customers.
Under these conditions, we will continue striving toEarthquake. Moreover, to generate profits in the existing

secure profit by enhancing productivity through structural

infrastructure business, we worked positively to implement

reforms. At the same time, we will strengthen measures tostructural reform measures. For example, we worked to

expand the maintenance and operation business field in

maximize Group synergy, strengthen management of project

the NTT access business and the NTT network business,

partner companies and integrate business management with

with plans to establish this field as a future core business.

consolidated subsidiaries.

Furthermore, we will reorganize the NTT DOCOMO business and NTT network business of Group companies androse 16.1% year on year to ¥184,128 million while net sales

establish a new company for mobile communications as aincreased 9.7% to ¥180,002 million. These increases weredirect subsidiary of COMSYS Holdings. Through these

supported partly by the positive impact of management

reorganization measures, we will clarify the assignment ofintegration with TSUKEN Corporation.

roles within the COMSYS Group as we work to achieve
low-cost construction operations.

Financial Statements

Under these conditions, new orders received in fiscal 2012

Topicsstructure and equipment following the Great East Japan

Corporate Social
Responsibility (CSR)

Fiscal 2012 Business Initiatives

Corporate
Governancetion work is projected to increase in the short term. This

Information on
Major Subsidiaries

In the NTT DOCOMO business, installation of additional

Review of Operations

Initiatives Ahead

Business at a GlanceMarket Conditions

Information

16

COMSYS Holdings Corporation
Annual Report 2012

To Contents

Electrical Communications
Engineering BusinessWorking to expand orders in the New Common Carrier (NCC) field (i.e., telecommunications carriers other than NTT) mainly for base station construction aimed
at new frequency bands and the introduction of LTE service.

New Orders Received/Net Sales(Millions of yen)

100,000

80,00060,00040,00020,0000

08

09

n New Orders Received n Net Sales

10

11

12

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COMSYS Holdings Corporation
Annual Report 201217
President’s Message

Despite these trends, new orders received fell 17.4% year
on year to ¥53,771 million, and net sales decreased 24.5%of base station construction aimed at new frequency bands

to ¥53,813 million. This was mainly due to lower capitaland the introduction of LTE service, as well as measures toinvestment by private-sector companies, a drop in price percope with burgeoning traffic driven by the uptake of smart-

unit order, and the impact of fierce competition for orders.

phones. Consequently, we have seen a steady succession ofpeak periods of base station construction work.

Initiatives Ahead
We will strive to further expand orders in NCC businessness centered on electrical facilities work in buildings, roads,

mainly for base station construction aimed at new frequency

municipalities, and infrastructure and communication has

bands and the introduction of LTE service. These orders will

been impacted by annual reductions in the total public works

be underpinned by full-fledged efforts by various telecom-budgets. This business has also continued to face stiff price-munications carriers to cope with burgeoning traffic due tobased competition for tenders from government agencies.

explosive growth in the uptake of smartphones.

Fiscal 2012 Business Initiatives

developing businesses other than base station construction.

In fiscal 2012, the NCC business saw post-quake restoration

Examples include service stage businesses such as mainte-

and reconstruction work, base station construction aimed atnance and repairs and peripheral businesses.

Corporate
GovernanceLooking ahead, we will actively tackle the challenge ofInformation on
Major Subsidiaries

On the other hand, the electrical communications busi-

Review of Operations

Capital investment in the NCC field has picked up as a result

Business at a GlanceMarket Conditions

new frequency bands, and installation of additional infraan increase in smartphone users. Also, investment wasadvanced in the installation of high-speed and higher traffic
volume-ready networks.

Corporate Social
Responsibility (CSR)

structure to cope with the growing traffic volume driven by

TopicsFinancial Statements
Information

18

COMSYS Holdings Corporation
Annual Report 2012

To Contents

IT Solutions BusinessWorking to expand the server related business and cloud business by harnessing
our advanced technicians nurtured to date.

New Orders Received/Net Sales(Millions of yen)

80,00060,00040,00020,0000

08

09

n New Orders Received n Net Sales

10

11

12

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COMSYS Holdings Corporation
Annual Report 201219
President’s Message

In the IT solutions business market, investment decision

mainly due to stagnation in IT-related capital investment due

making slowed to a crawl, largely reflecting restrained IT-

to the impact of the Great East Japan Earthquake, in addition

related capital investment and postponement of public

to the completion of Indefeasible Right of Use (IRU) related

works projects, mainly due to the impact of the Great East

works and preparation for the introduction of terrestrial

Japan Earthquake. Looking ahead, we expect challenging

digital broadcasting.

conditions to persist in the private-sector market. However,Initiatives Ahead

diverse usage by clients of tablet devices, smartphones, andExpansion in the server-related business has been high-virtual desktops, and the full-scale use of cloud services.

lighted by virtual desktops in the healthcare sector, wherestrengthened collaboration with partners has functioned
effectively. We believe that it is essential to develop sales

In the IT solutions business, we are strengthening our activi-

strategies that carefully take into account these growthties targeting integration projects comprising servers andtrends, while nurturing our technicians.
In addition, we will develop business by harnessing thenumber. Other areas we are targeting include wireless LAN

skilled technicians we have nurtured to date. Key measuresprojects designed to alleviate mobile network congestion

will include expanding orders for integrated projects, suchcaused by the expanded use of smartphones, along withas “network and server” and “server with operation andaccess point construction. In addition, we have expanded

maintenance” projects, which will be provided by server

projects to a certain extent in the hospital and healthcare

linkage, including storage. Another measure will be to offer

sectors by strengthening collaboration with partners.

joint proposals through alliances with manufacturers, vendors

Despite these efforts, new orders received and net sales
decreased sharply from the previous fiscal year. New orders

and telecommunications carriers. We will also build platforms
aimed at the use of cloud computing.

Corporate Social
Responsibility (CSR)

fixed-line and wireless LAN, which have been increasing in

Corporate
GovernanceFiscal 2012 Business Initiatives

Information on
Major Subsidiaries

the market is expected to regain momentum, supported by

Review of Operations

and net sales decreased 31.8% to ¥44,503 million. This wasBusiness at a GlanceMarket Conditions

received decreased 21.5% year on year to ¥45,199 million,
TopicsFinancial Statements
Information

20

COMSYS Holdings Corporation
Annual Report 2012

To Contents

Social System-Related Businessand Other
Targeting social infrastructure businesses, such as solar power and energy­conservation fields.

New Orders Received/Net Sales(Millions of yen)

25,00020,00015,00010,000

5,000

0

08

09

n New Orders Received n Net Sales

10

11

12

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COMSYS Holdings Corporation
Annual Report 201221
President’s Message

Under these conditions, despite lackluster conditions in
the general private-sector market, along with a decline inquake reconstruction demand have triggered heightened

construction work for large projects, we vigorously took steps

demand for seismic retrofitting of social infrastructure.

to develop new business. As a result, new orders received

Demand has also increased in the energy and energy con-increased 11.4% year on year to ¥14,670 million, while net

servation sectors.

sales rose 18.1% to ¥17,531 million.

Conditions have remained sluggish in the market for

Initiatives Ahead

environmental solutions and renovation markets, coupled

Going forward, we will endeavor to expand orders bywith an increase in integrated projects. In the solar power

focusing on seismic retrofitting of social infrastructure in

generation business, the Japanese government has deter-

tandem with the pursuit of a broad range of businessmined a higher-than-anticipated solar power purchase price.

development initiatives in the ecology, energy conservation

Accordingly, we expect demand for solar power generationand energy sectors.

system in July 2012.

In the solar power generation facility construction business, eyeing burgeoning demand spurred by the determination of the solar power purchase price, we will work to win
orders for mega-solar power system projects. This will be

In the private-sector civil engineering-related field, we

done by strengthening consulting-based sales through theworked to expand orders for seismic retrofitting work on

development of a planning and design structure, and pro-water supply and drainage systems and other projects,

moting collaboration with alliance partner companies. In thetargeting expansion in the urban infrastructure develop-

seismic retrofitting business for water supply and drainage

ment business.

systems, we will endeavor to expand orders by winning large
projects. In particular, we will take full advantage of ouractivities and develop a framework for the solar power gen-upgraded tender qualification rank for the Tokyo water supply

eration facility construction business, eyeing an expansion

and drainage system. In other areas, we will pave the way

in demand as a result of the enforcement of the full-amountfor winning future orders by taking steps to obtain relevantpurchase system. Our goal has been to win orders for mega-

technologies in the smart grid-related business and build

solar power system projects in collaboration with alliancesales channels as early as possible.

TopicsIn the energy-related business, we worked to strengthen

Corporate Social
Responsibility (CSR)

Fiscal 2012 Business Initiatives

Corporate
Governanceto grow in the run-up to the start of the full-amount purchase

Information on
Major Subsidiaries

construction, but have remained relatively stable in the

Review of Operations

The Great East Japan Earthquake and the ensuing post-

Business at a GlanceMarket Conditions

partner companies.
Financial Statements
Information

22

COMSYS Holdings Corporation
Annual Report 2012

To Contents

Information on Major Subsidiaries
Status of Five Core Operating Subsidiaries:

Nippon COMSYS GroupSANWA COMSYS Engineering GroupIn the year under review, the Nippon COMSYS Group actively

In the year under review, the SANWA COMSYS Engineering

worked to implement measures to improve earnings, includ-Group vigorously worked to enhance earnings, primarily

ing strengthening management as a principal contractor andby deepening various structural reform measures imple-

enhancing overall productivity by capturing Group-wide

mented to date. Examples included “strengthening con-synergies. This was achieved by maintaining and deepening

struction capabilities to generate earnings” and “cutting

structural reforms implemented to date. Furthermore, as

administrative and back-office costs to realize a leanpart of efforts to establish a new growth strategy, the Groupmanagement structure.”

has pursued business incubation initiatives in IT management
services, server-related and other business sectors.

Under these circumstances, the Group reported large
decreases in new orders received and net sales. New orders

Under these circumstances, the Group recorded large

received decreased 6.8% year on year to ¥52,696 million,

declines in new orders received and net sales. New orders

while net sales were down 11.4% to ¥52,254 million. This wasreceived during the year totaled ¥178,220 million, a year-on-

chiefly due to decreases in unit order amounts and the impact

year decline of 8.4%, and net sales were down 12.5% yearof fierce competition to win tenders from government

on year to ¥172,780 million. This mainly reflected a drop inagencies in the public sector and companies in the private

capital investment by private-sector companies and thesector. However, operating income soared 34.6% year oncompletion of Indefeasible Right of User (IRU) related works

year to ¥1,795 million, mainly due to measures to fortify theand the preparation of the introduction of terrestrial digital

Group’s business foundation in the previous fiscal year andbroadcasting. However, operating income jumped 19.6%

the positive impact of structural reforms.

year on year to ¥9,374 million, reflecting efforts to enhance
productivity through structural reforms and cut costs, as wellas the positive impact of measures to fortify the Group’s
operational foundation in the previous fiscal year.

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COMSYS Holdings Corporation
Annual Report 201223
President’s Message

Under these circumstances, the TSUKEN Group reported

The TOSYS Group worked tirelessly to provide post-quake

new orders received of ¥36,191 million, net sales of ¥40,348

reconstruction support in its core NTT business, while striving

million and an operating income of ¥682 million. No

to ensure the completion of construction work carried overcomparisons with the previous fiscal year are provided

from the previous fiscal year, and to complete increased

because the TSUKEN Group joined the COMSYS Group inaccess network construction resulting from the entry of a

October 2010.

time, in an initiative to halt the decline in revenues, the GroupCOMSYS JOHO SYSTEM Group

worked to implement reforms of the maintenance businessIn the year under review, the COMSYS JOHO SYSTEM Groupas one of its main structural reform themes.

conducted business with an emphasis on two priorities:
strengthening sales activities aimed at attracting and expanding orders, and bolstering earnings by enhancing humanprivate-sector market. However, net sales rose 3.1% year

resource utilization rates and implementing projecton year to ¥22,690 million, mainly owing to the completion

management.
However, as the software market has been shrinking, the15.0% year on year to ¥752 million, mainly due to theGroup struggled to win new projects, causing a large drop

optimization of human resource utilization and a reduction

in new orders received and net sales. New orders received

in unprofitable construction projects due to the selective

decreased 15.4% year on year to ¥7,384 million, while net

acceptance of orders.

sales decreased by 8.3% year on year to ¥7,283 million. The
Group posted a large operating loss of ¥351 million, mainly

TSUKEN Group

due to the impact of unprofitable projects.

The TSUKEN Group faced a challenging environment for

Corporate
Governanceof NTT construction projects. Operating income jumped

Information on
Major Subsidiaries

Under these conditions, new orders received declined
3.9% year on year to ¥22,782 million due to a slump in the

Review of Operations

telecommunications carrier into the Niigata area. At the sameBusiness at a Glance

TOSYS Groupnew orders received and net sales, given the completion of
IRU-related works and preparation for the introduction of
Corporate Social
Responsibility (CSR)

terrestrial digital broadcasting. In this context, the Group
strove to secure operating income by improving its cost
structure. In addition, the Group took positive steps tocapture synergies through management integration with the
COMSYS Group. Measures included business portfolio
realignment and integration of core information systems with

Topicsthe COMSYS Group. The TSUKEN Group also promoted theefficient management of construction operations throughintegration of designated construction service areas.

Click here for Business at a Glance

P.40

Click here for Our Group Formation

Information

P.12

Financial Statements

FOR MORE INFORMATION24

COMSYS Holdings Corporation
Annual Report 2012

To Contents

Corporate Governance
Basic Corporate Governance Philosophy

The Board of Directors, the highest decision-making body

The philosophy of the COMSYS Group is based on the threewith respect to management strategy, has decided to

key management pillars of sales and earnings growth, increased

structure the Board around directors well versed in theoperation efficiency, and unification of our business operations.

Company’s operations and outside directors who monitor

Mindful always of these three concepts, the COMSYS Groupmanagement from an independent standpoint, with the aim

strives to enhance corporate value and win the trust andof enhancing management efficiency. Meanwhile, the Com-admiration of all stakeholders through its performance.

pany has reinforced auditing functions by appointing outside

The COMSYS Group makes all possible efforts to entrench

corporate auditors who now have stronger legal authority

measures such as improving security and quality standards,

to audit company activities, in order to ensure and enhancestrengthening corporate governance, ensuring compliance,sound management. As of June 28, 2012, the Board ofenhancing risk management, implementing the Group’s code

Directors consisted of 12 directors. Based on internal rulesof conduct, and bolstering internal control systems based

governing the Board of Directors, the Board meets regularlyon the Companies Act and the Financial Instruments andand as necessary to discuss matters stipulated by laws andExchange Act of Japan.

regulations and to decide on important management issues.
Every quarter, the directors responsible for each business

Organizational Structure

segment report to the Board of Directors on progress with

Corporate governance at COMSYS Holdings Corporation

business execution based on policies determined by the(the “Company”) adopts the corporate auditor system, which

Board. Five corporate auditors, including outside corporate

by Japanese law stipulates an organizational structure consist-auditors, attend meetings of the Board of Directors anding of a General Shareholders’ Meeting, Board of Directors,

express their views on issues related to business execution,

Board of Corporate Auditors and other organizations.

and monitor the directors’ performance of their duties.

Diagram of the COMSYS Group’s business execution framework, management monitoring and internal control system

General Shareholders’ Meeting

Board of Auditors

Board of Directors

Audit

5 Auditors including
3 Outside Auditors

12 Directors including
1 Outside Director

President
Senior Management Committee
11 Directors
1 Standing Auditor

Group Operation
Standards

CSR Committee
Compliance Committee
Independent
Auditor

Audit

Risk Management Committee
Personal Information Protection
and Administration Committee
COMSYS Group Presidents Committee

Corporate Planning Department
IR Department
Finance & Accounting Department
General Affairs Department
Personnel Department (or Human Resources
Management Department)Internal
Auditing

Internal Control
Audit Department
Internal
Auditing

Core Operating Subsidiaries
Nippon COMSYS Corporation, SANWA COMSYS Engineering Corporation, TOSYS Corporation, TSUKEN Corporation,
COMSYS JOHO SYSTEM Corporation, COMSYS Shared Services Corporation

To Contents

Establishing a Risk Management Structure
In its efforts to maintain and enhance corporate value amid

auditor. In principle, this committee meets once a month toa rapidly changing business environment, the COMSYS

examine, discuss, and pass resolutions on issues related toGroup is aware that it faces a variety of business risks which

key decisions, in an effort to improve the efficiency of busi-

must be managed appropriately. Therefore, the Group has

ness execution. The heads of each operating department

established a Risk Management Committee, chaired by theand certain other personnel attend meetings of the Senior

President and made up of directors from the Company andManagement Committee as observers, as necessary, toeach of the core operating subsidiaries.

ensure that they fully understand the basis for all management decisions.

The Basic Policy on Risk Management was formulated
and similar risk management committees were establishedat each group company, among other measures. In thismanner, efforts are being made to properly address themeetings to conduct efficient operational management.

business risks faced by each Group company, and to minimize
the materialization of each risk.
The Company has formulated Risk Management Guide-year, and to flexibly structure an optimal management teamlines and Crisis Management Guidelines and will strive toin step with changes in the business environment.

maintain stable operations and ensure steady growth at theCompany and the COMSYS Group by practicing effective

Status of the Internal Control Systemrisk management.
For example, the COMSYS Group manages operationalon a Basic Policy on Establishing an Internal Control Systemrisk by ensuring that Group companies work to acquire andthat has been approved by resolution of the Board of Direc-

maintain certifications for management systems tailored totors, as follows.

their operations, such as ISO 9001, ISO 14001, COHSMS(Construction Occupational Health and Safety Management

Establishing a Compliance Structure

Systems), ISMS (Information Security Management Systems)

Based on its internal Compliance Program, the Company has

and Privacy Mark certifications.

Corporate
Governance

The Company implements its internal control system based

Information on
Major Subsidiaries

to clarify directors’ management responsibility every fiscal

Review of Operations

In each business segment, an Operating Committee under
the supervision of the responsible director holds regular
The term of office for directors is set at one year in order

Business at a Glance

directors other than outside directors and the standing

25
President’s Message

The Senior Management Committee is made up of

COMSYS Holdings Corporation
Annual Report 2012

set forth Compliance Action Guidelines and has established
the Compliance Committee within the above framework.
This Committee, which is chaired by the President, is

The Company and the COMSYS Group have established themade up of representatives from the Company and each of

CSR Committee to coordinate CSR activities Group-wide

the core operating subsidiaries, as well as outside corporate

with the aim of ensuring that the Group actively fulfills its

auditors. The Committee oversees compliance throughout

economic and social responsibilities, including social contri-

the COMSYS Group, and strives to increase the COMSYS

bution activities, as a good corporate citizen.
The CSR Committee is engaged in CSR activities address-

compliance structure through various discussions. All

ing various themes, such as compliance, corporate gover-

COMSYS Group companies have set up similar compliancenance, risk management, information disclosure andcommittees of their own. These committees work to estab-

protection, security countermeasures, social contributions

lish an effective compliance structure by implementing

and environmental issues.

TopicsGroup’s awareness of compliance and establish an effective

Corporate Social
Responsibility (CSR)

CSR Activities

educational and training programs, as part of efforts tophy and action guidelines of each respective COMSYSGroup company.

Financial Statements

deepen employee understanding of the corporate philoso-

Information

26

COMSYS Holdings Corporation
Annual Report 2012

To Contents

Establishing an Information Management
Structureof whom are outside corporate auditors. No employees are

Important documents related to business activities and thespecifically assigned to assist the corporate auditors with theirperformance of directors’ duties, including minutes of theactivities. If such assistance is required, there is a structure in

Board of Directors and Senior Management Committee

place for addressing personnel issues such as determining

meetings and other reports, are stored and managed

appointees, and ensuring independence from directors.

The Board of Corporate Auditors has five members, three

appropriately based on laws and regulations, as well as the

In addition, based on the rules governing the Board ofGroup’s internal rules such as document management rules.

Corporate Auditors, directors and employees are required

Furthermore, in order to improve the efficiency of opera-

to report on major business activities or issues that could

tions and business execution, after ensuring an adequate

affect the COMSYS Group’s operations or performance tolevel of information security, the Company is working to

the corporate auditors.

deploy various information systems to put in place a framework for sharing the latest management information.

Corporate auditors may request further information on
the abovementioned reporting at any time, as necessary, as
well as other required disclosure.

Establishing a Group Management Structure

The corporate auditors regularly attend both regular andImportant management decisions within the COMSYS Groupextraordinary meetings of the Board of Directors as well as

are reported to and discussed by the Board of Directors andmeetings of the Senior Management Committee, the CSR

the Senior Management Committee in line with Group

Committee, the Compliance Committee and other important

Operation Standards, which clarify decision making andinternal committee meetings or discussions. This structurereporting rules for the COMSYS Group. In this manner, thehas been established to allow the corporate auditors to verify

Group management and monitoring framework is centered

the status of business execution on a regular basis and toon the Company.

express their views on these matters.

In order to ensure that all COMSYS Group operations are

The corporate auditors also hold regular meetings withcarried out appropriately, the directors of each core operat-

the President to directly express their views on issues related

ing subsidiary also participate as members in the various

to business execution and other topics.

Group committees established within the Company, includ-

In accordance with audit plans formulated by the Board

ing the CSR Committee, the Compliance Committee andof Corporate Auditors, the corporate auditors of COMSYS

the Risk Management Committee. In this way, the COMSYS

Holdings regularly check to see whether business operations

Group ensures that all policies and decisions discussed byare executed appropriately and efficiently by maintaining

these groups are reported to and thoroughly understood byclose ties with the Internal Audit Department and with theeach Group company.

Group’s independent auditor. For example, the corporate

In addition, the Group has formed the COMSYS Groupauditors accompany the independent auditor and others on

Presidents Committee, which is made up of the presidents

on-site internal and financial audits as observers. The cor-of COMSYS Group companies. This committee meets regu-

porate auditors of COMSYS Holdings also convene regularlarly and works to ensure that management policies andmeetings with their counterparts at core COMSYS Group

activities are clearly understood by all members.

companies, and maintain close ties within the COMSYSGroup mainly by sharing information and exchanging views,

Internal Auditing and Corporate Auditors
The Company’s internal auditing organization consists of anInternal Audit Office with a staff of 11 employees within theInternal Control Audit Department.
This Office formulates internal auditing policies based
on top management requirements, and implements internal
audits of the Company and all Group companies. These
activities are intended to ensure that each business risk facedby the Group is minimized, while maximizing the quality ofbusiness operations.

in order to improve the effectiveness of audits.

COMSYS Holdings Corporation
Annual Report 2012

To Contents

President’s Message

Corporate Social Responsibility (CSR)
Basic Approach to CSRWith the pride and purpose of being a top-brand group

Group is to build reliable, safe and convenient communica-in the communications network construction industry, we will

tions infrastructure and support the networks that connect

conduct corporate business activities directed at realizing aevery corner of society like clockwork. This is, simultaneously,

sustainable society through ICT. At the same time, we aim

our responsibility to society as a corporation.

to be an enterprise that develops together with society while
gaining the trust and fulfilling the expectations of the public.

Review of Operations

munications infrastructure while giving consideration to theenvironment and help create an information-rich society thatcoexists harmoniously with the global environment.

Management Policies
Strive to maximize synergies acrossthe COMSYS Group

Aim to be a knowledge-intensive
corporation by sharing know-how
through Group-wide IT systems

Information on
Major Subsidiaries

Relationship Between Management Policies and CSR

Corporate
GovernanceFortify the COMSYS Group’s
dominant position as Japan’s No. 1
communications infrastructure
construction company

Business at a Glance

In this information-rich society, the role of the COMSYSOur mission is to build high-quality, highly reliable com-

27

Sustained, more in-depth structural reform
COMSYS WAY

Restructure with afocus on full-scale
development of themaintenance andoperation business

Innovation in new
businesses

Improve profitability
in private-sectorbusiness

Improve productivity and efficiency
through strategic
use of IT

Corporate Social
Responsibility (CSR)

Rebuild
the Group’s business
management
structures

TopicsConduct corporate business activities directed atrealizing a sustainable society through ICT

CSR at the COMSYS Group
Financial Statements

Helping to Build a Society Where Communications Networks Enrich Interpersonal
Relationships and Ties Between People and Society at Large

Information

28

COMSYS Holdings Corporation
Annual Report 2012

To Contents

TopicsCOMSYS Group
Full-Scale Restoration and Reconstruction Work
After the Great East Japan Earthquake

engineering technology and management skills in infrastruc-At the request of Nippon Telegraph and Telephone East

ture platform construction, which has been amassed over

Corporation, the COMSYS Group has been conducting

many years.

This project took full advantage of the Group’s civilreconstruction work in various areas of the Tohoku region,

The Group also carried out a host of other construction

with the aim of building robust telecommunications infra-

projects in preparedness for earthquakes. Examples included

structure to provide uninterrupted service even in times ofrelocating communications base stations to high ground,major disasters. In the Miyako City-Ofunato City area in Iwate

new microwave route installation work, installation of new

Prefecture and Minamisanriku Town in Miyagi Prefecture, thebase stations for super-large zones, and installation ofGroup conducted construction projects to install telecom-

additional batteries for base stations.

munications cable across rivers under the riverbed using the
Acemole method*. (Chart 1)

Minamisanriku Town was heavily damaged by the tsunami.

* Acemole method: A trenchless method of installing an underground conduitby drilling through the ground below the surface

Driving shaft for initiating the Acemole method

Chart 1
Driving shaft
Building A

Building B

Tsunami lifeline
communications
conduit
Shaft

River

Shaft
Installation route

Acemole method

Installing communications cable under the riverbed at Shiomi Bridge(A new underground conduit was drilled at a depth of 11 m, and a telecommunications
cable was laid across the river under the riverbed.)
The driving shaft for initiating the Acemole method was dug on the far side of the river.

To Contents

The installation of IP nodes has enabled information fromeven more devices to be transmitted individually to the Central

News Media Coverage of Response to Weather
Disasters

Control Room. This has allowed the customer to remotely

29
President’s Message

Nippon COMSYS Corporation

COMSYS Holdings Corporation
Annual Report 2012

perform intensive monitoring and maintenance tasks.
SANWA COMSYS Engineering Corporation conducted

Employee Response Liaison Committee as a forum forpipe and fiber optic cable installation and connection work

discussions on how employees will respond in the event ofneeded to construct the above infrastructure.

a weather disaster. In preparedness for such a disaster,
Nippon COMSYS has implemented measures such as

Business at a Glance

Nippon COMSYS Corporation has set up an Emergency

drawing up disaster manuals, conducting simulations, andReview of Operations

stockpiling disaster-readiness supplies. During a rainstorm
in April, considering the need to ensure a safe commutefor employees, the company instructed employees to returnhome before the full brunt of the storm struck. As a result,all employees made it home without difficulty, while avoiding disruptions in the public transportation system. Nippon
news media.
News media coverage of
Nippon COMSYS’ responseto the rainstorm

An installed IP node container unit

Information on
Major Subsidiaries

COMSYS’ response to the rainstorm was covered by the

TSUKEN Corporation
Corporate
GovernanceCommunication Line Installation Work
­Completed on the Yubari IC-Shimukappu IC
Segment of the Trans-Hokkaido Expressway
TSUKEN Corporation has completed communication line
installation work on the Yubari IC-Shimukappu IC segment
Nippon Expressway Company Limited, the project took
The Emergency Employee Response Liaison Committee
in session

SANWA COMSYS Engineering Corporation

Efforts are under way at Tomei Expressway to convert roadlaid fiber optic and metal cable, while installing 201 emergency telephones and 122 emergency telephone booths,
along a roughly 35-km long stretch of the expressway. In
recognition of the outstanding quality assurance of thisproject, TSUKEN Corporation received an award for excel-

TopicsConstruction of Access Network Infrastructure
for the Tomei Expressway

about a year beginning in November 2010. The company

Corporate Social
Responsibility (CSR)of the Trans-Hokkaido Expressway. Commissioned by East

lence in construction project quality assurance.

devices installed on the expressway to IP technology. These
devices include information boards, surveillance cameras
In this construction project which was commissioned byCentral Nippon Expressway Company Limited, an accessnetwork was improved by installing IP nodes, the project’s
main infrastructure, at roughly 1-km intervals along the

Financial Statements

and highway radio.

expressway within the service area of the Shizuoka Mainbuild an IP network linking all road devices to be installedon the expressway.

Information

tenance Service Center. The purpose of this work was to30

COMSYS Holdings Corporation
Annual Report 2012

To Contents

Consolidated Balance Sheets
COMSYS Holdings Corporation and Consolidated Subsidiaries
As of March 31, 2011 and 2012

2011

Millions of yen
2012

Cash and cash equivalents �������������������������������������������������������������������������������������������������������������

¥ 18,265¥ 33,489

Notes and accounts receivable—trade ����������������������������������������������������������������������������������������

102,993

81,853

Lease investment assets �����������������������������������������������������������������������������������������������������������������

2,287

2,542

Marketable securities ���������������������������������������������������������������������������������������������������������������������

159

59

Accumulated cost of construction in progress �����������������������������������������������������������������������������

14,53915,087

Real estate for sale �������������������������������������������������������������������������������������������������������������������������

3,257

18

Merchandise �����������������������������������������������������������������������������������������������������������������������������������

986

1,352

Materials and supplies �������������������������������������������������������������������������������������������������������������������

691

651

Deferred income taxes �������������������������������������������������������������������������������������������������������������������

3,053

3,495

Other current assets �����������������������������������������������������������������������������������������������������������������������

3,820

3,233

Less: Allowance for doubtful receivables �������������������������������������������������������������������������������������

(194)

(137)

Total current assets �������������������������������������������������������������������������������������������������������������������������

149,858

141,646

Buildings and structures �������������������������������������������������������������������������������������������������������������

45,79845,620Less: Accumulated depreciation �������������������������������������������������������������������������������������������

(21,288)(22,535)

Buildings and structures, net �������������������������������������������������������������������������������������������������

24,51023,085ASSETS
Current Assets:

Fixed assets:
Property and equipment:

Machinery, vehicles and equipment �����������������������������������������������������������������������������������������

22,252

20,074

Less: Accumulated depreciation �������������������������������������������������������������������������������������������

(16,164)(14,956)

Machinery, vehicles and equipment, net ������������������������������������������������������������������������������

6,088

5,118

Land ���������������������������������������������������������������������������������������������������������������������������������������������

33,12634,391

Lease assets ���������������������������������������������������������������������������������������������������������������������������������

70

92

Less: Accumulated depreciation �������������������������������������������������������������������������������������������

(28)

(48)

Lease assets, net ���������������������������������������������������������������������������������������������������������������������

42

43

Construction in progress �����������������������������������������������������������������������������������������������������������

1

936

Total property and equipment ���������������������������������������������������������������������������������������������������

63,76963,575Intangible assets �����������������������������������������������������������������������������������������������������������������������������

2,677

3,802

Investments and other assets:
Investment securities �����������������������������������������������������������������������������������������������������������������

7,128

7,228

Long-term loans receivable �������������������������������������������������������������������������������������������������������

1,980

1,759

Prepaid pension cost �����������������������������������������������������������������������������������������������������������������

4,407

4,077

Deferred income taxes ���������������������������������������������������������������������������������������������������������������

3,709

2,410

Other assets ���������������������������������������������������������������������������������������������������������������������������������

6,039

5,689

Less: Allowance for doubtful receivables ���������������������������������������������������������������������������������

(2,136)(2,055)

Total investments and other assets �������������������������������������������������������������������������������������������

21,12919,110Total fixed assets �����������������������������������������������������������������������������������������������������������������������������

87,57786,488

Total assets �����������������������������������������������������������������������������������������������������������������������������������������

¥237,436¥228,135COMSYS Holdings Corporation
Annual Report 2012

To Contents

Millions of yen
2012

Accounts payable—trade ���������������������������������������������������������������������������������������������������������������

¥ 46,716¥ 39,891

Short-term bank loans �������������������������������������������������������������������������������������������������������������������

8,124

1,520

LIABILITIESPresident’s Message

2011

31

Current liabilities:

2,261

3,795

Advances received on construction in progress �������������������������������������������������������������������������

1,228

1,448

Allowance for warranty work on construction projects ���������������������������������������������������������������

134

131

Allowance for losses on construction contracts ���������������������������������������������������������������������������

24

1,057

7,431

7,637

Total current liabilities ���������������������������������������������������������������������������������������������������������������������

65,921

55,482Long-term liabilities:
49

—

1,205

333

Deferred tax liabilities for unrealized gains on land revaluation ������������������������������������������������

1,865

1,662

Accrued severance indemnities �����������������������������������������������������������������������������������������������������

5,796

5,426

Allowance for directors’ retirement benefits �������������������������������������������������������������������������������

302

266

526

388

Total long-term liabilities ���������������������������������������������������������������������������������������������������������������

9,746

8,078

Total liabilities �����������������������������������������������������������������������������������������������������������������������������������

75,66763,56010,00010,000

Corporate
Governance

Other long-term liabilities �������������������������������������������������������������������������������������������������������������

Information on
Major Subsidiaries

Long-term debt �������������������������������������������������������������������������������������������������������������������������������
Deferred income taxes �������������������������������������������������������������������������������������������������������������������

Review of Operations

Other current liabilities �������������������������������������������������������������������������������������������������������������������

Business at a Glance

Income taxes payable ���������������������������������������������������������������������������������������������������������������������NET ASSETS
Shareholders’ equity:
Additional paid-in capital ���������������������������������������������������������������������������������������������������������������

55,34655,374Retained earnings ���������������������������������������������������������������������������������������������������������������������������

119,194

123,611

Treasury stock, at cost ���������������������������������������������������������������������������������������������������������������������

(14,870)(17,504)

Total shareholders’ equity �������������������������������������������������������������������������������������������������������������

169,671

171,481

(374)

115

Unrealized gain (loss) on land revaluation �����������������������������������������������������������������������������������

(8,453)(8,090)Total accumulated other comprehensive income �����������������������������������������������������������������������

(8,827)(7,974)

Subscription rights to shares ���������������������������������������������������������������������������������������������������������

364

430

Minority interests �����������������������������������������������������������������������������������������������������������������������������

560

637

Total net assets ���������������������������������������������������������������������������������������������������������������������������������

161,768

164,574

Total liabilities and net assets �������������������������������������������������������������������������������������������������������������

¥237,436¥228,135

Financial Statements

Unrealized gain (loss) on other securities �������������������������������������������������������������������������������������

Topics

Accumulated other comprehensive income:Corporate Social
Responsibility (CSR)

Common stock �������������������������������������������������������������������������������������������������������������������������������

Information

32

COMSYS Holdings Corporation
Annual Report 2012

To Contents

Consolidated Statements of Income
COMSYS Holdings Corporation and Consolidated Subsidiaries
Years ended March 31, 2011 and 2012

2011

Millions of yen
2012

Net sales �������������������������������������������������������������������������������������������������������������������������������������������������

¥315,480¥295,851

Cost of sales �������������������������������������������������������������������������������������������������������������������������������������������

284,427

264,733

Gross profits �����������������������������������������������������������������������������������������������������������������������������������������

31,052

31,117

Selling, general and administrative expenses ���������������������������������������������������������������������������������

19,266

18,525

Operating income ���������������������������������������������������������������������������������������������������������������������������������

11,785

12,592Other income:Interest income �����������������������������������������������������������������������������������������������������������������������������������

68

52

Dividend income ���������������������������������������������������������������������������������������������������������������������������������

136

142

Rent income on noncurrent assets ���������������������������������������������������������������������������������������������������

131

127

Other ���������������������������������������������������������������������������������������������������������������������������������������������������

188

214

Total other income �����������������������������������������������������������������������������������������������������������������������������

525

536

Interest expenses �������������������������������������������������������������������������������������������������������������������������������

22

14

Foreign exchange losses �������������������������������������������������������������������������������������������������������������������

40

31

Rental expenses ���������������������������������������������������������������������������������������������������������������������������������

14

46

Provision for allowance for doubtful receivables �����������������������������������������������������������������������������

48—

Other expenses:

Other ���������������������������������������������������������������������������������������������������������������������������������������������������

44

67

Total other expenses �������������������������������������������������������������������������������������������������������������������������

170

159

Recurring profit �������������������������������������������������������������������������������������������������������������������������������������

12,14012,969Gain on sales of fixed assets �������������������������������������������������������������������������������������������������������������

108

54

Gain on sales of investment securities ���������������������������������������������������������������������������������������������

67

35

Reversal of allowance for doubtful receivables �������������������������������������������������������������������������������

116—

Gain on payback of insurance payments �����������������������������������������������������������������������������������������

232

156

Gain on negative goodwill �����������������������������������������������������������������������������������������������������������������

7,543

—

Extraordinary income:

Other ���������������������������������������������������������������������������������������������������������������������������������������������������

24

4

Total extraordinary income ���������������������������������������������������������������������������������������������������������������

8,091

251

Write-down on investments in securities �����������������������������������������������������������������������������������������

675

479

Loss on sales of fixed assets �������������������������������������������������������������������������������������������������������������

108

145

Loss on disposal of fixed assets ��������������������������������������������������������������������������������������������������������

182

73

Loss on impairment of fixed assets ���������������������������������������������������������������������������������������������������

1,841

4

Special payments on employees’ retirement benefits �������������������������������������������������������������������

1,246

61

Write-down on software ���������������������������������������������������������������������������������������������������������������������

3,827

—

Other ���������������������������������������������������������������������������������������������������������������������������������������������������

1,156

189

Extraordinary loss:

Total extraordinary loss ���������������������������������������������������������������������������������������������������������������������

9,038

953

Income before income taxes and other adjustments to net income �������������������������������������������

11,193

12,267

Current �������������������������������������������������������������������������������������������������������������������������������������������������

3,636

5,362

Deferred ���������������������������������������������������������������������������������������������������������������������������������������������

(2,077)(348)

Total income taxes �����������������������������������������������������������������������������������������������������������������������������

1,558

5,013

Income before minority interests �������������������������������������������������������������������������������������������������������

9,634

7,253

Income taxes:

Minority interests ���������������������������������������������������������������������������������������������������������������������������������

90

79

Net income ���������������������������������������������������������������������������������������������������������������������������������������������

¥  9,543¥  7,173

COMSYS Holdings Corporation
Annual Report 2012

To Contents

COMSYS Holdings Corporation and Consolidated Subsidiaries
Years ended March 31, 2011 and 2012

2011

Millions of yen
2012¥ 10,000¥ 10,000

Shareholders’ equity:

President’s Message

Consolidated Statements of Changes in Net Assets

33

Common stock:
Changes during the period—
10,00057,01655,346

Disposal of treasury stock �����������������������������������������������������������������������������������������������������������

(1,670)27

Total changes during the period �����������������������������������������������������������������������������������������������

(1,670)27

Balance at the end of the period ���������������������������������������������������������������������������������������������������

55,34655,374

111,605

119,194

Cash dividends ���������������������������������������������������������������������������������������������������������������������������

(2,511)(2,597)

Net income ���������������������������������������������������������������������������������������������������������������������������������

9,543

7,173

Reversal of unrealized gain (loss) on land revaluation �������������������������������������������������������������

556

(159)

Additional paid-in capital:
Balance at the end of the previous period �����������������������������������������������������������������������������������
Changes during the period

Retained earnings:
Balance at the end of the previous period �����������������������������������������������������������������������������������
Changes during the period

7,588

4,417

119,194

123,611(19,522)(14,870)

Repurchase of treasury stock �����������������������������������������������������������������������������������������������������

(3,002)(3,000)

Disposal of treasury stock �����������������������������������������������������������������������������������������������������������

8,060

366

Treasury stock, at cost:
Balance at the end of the previous period �����������������������������������������������������������������������������������
Changes during the period

(406)

—

4,652

(2,634)

Balance at the end of the period ���������������������������������������������������������������������������������������������������

(14,870)(17,504)

159,100

169,671(2,511)(2,597)

Total shareholders’ equity:
Balance at the end of the previous period �����������������������������������������������������������������������������������
Changes during the period
Cash dividends ���������������������������������������������������������������������������������������������������������������������������

9,543

7,173

(3,002)(3,000)

Disposal of treasury stock �����������������������������������������������������������������������������������������������������������

6,390

393

Changes of scope of consolidation �������������������������������������������������������������������������������������������

(406)

—

Reversal of unrealized gain (loss) on land revaluation �������������������������������������������������������������

556

(159)

10,5701,810

169,671

171,481

Financial Statements

Total changes during the period �����������������������������������������������������������������������������������������������
Balance at the end of the period ���������������������������������������������������������������������������������������������������

Topics

Net income ���������������������������������������������������������������������������������������������������������������������������������
Repurchase of treasury stock �����������������������������������������������������������������������������������������������������

Corporate Social
Responsibility (CSR)

Changes of scope of consolidation �������������������������������������������������������������������������������������������
Total changes during the period �����������������������������������������������������������������������������������������������

Corporate
GovernanceTotal changes during the period �����������������������������������������������������������������������������������������������
Balance at the end of the period ���������������������������������������������������������������������������������������������������

Information on
Major Subsidiaries—
10,000

Review of Operations

Total changes during the period �����������������������������������������������������������������������������������������������
Balance at the end of the period ���������������������������������������������������������������������������������������������������

Business at a Glance

Balance at the end of the previous period �����������������������������������������������������������������������������������

Information

34

COMSYS Holdings Corporation
Annual Report 2012

To Contents

2011

Millions of yen
2012

Accumulated other comprehensive income:Unrealized gain (loss) on other securities:
Balance at the end of the previous period �����������������������������������������������������������������������������������

¥(443)¥(374)

Changes during the period
Net changes during the period except for shareholders’ equity �������������������������������������������

69

490

Total changes during the period �����������������������������������������������������������������������������������������������

69

490

Balance at the end of the period ���������������������������������������������������������������������������������������������������

(374)

115

(7,896)(8,453)

(556)

362

Unrealized gain (loss) on land revaluation:
Balance at the end of the previous period �����������������������������������������������������������������������������������
Changes during the period
Net changes during the period except for shareholders’ equity �������������������������������������������
Total changes during the period �����������������������������������������������������������������������������������������������

(556)

362

Balance at the end of the period ���������������������������������������������������������������������������������������������������

(8,453)(8,090)(8,340)(8,827)

Net changes during the period except for shareholders’ equity �������������������������������������������

(486)

852

Total changes during the period �����������������������������������������������������������������������������������������������

(486)

852

Balance at the end of the period ���������������������������������������������������������������������������������������������������

(8,827)(7,974)249

364

Net changes during the period except for shareholders’ equity �����������������������������������������������

114

66

Total changes during the period ���������������������������������������������������������������������������������������������������

114

66

Balance at the end of the period �����������������������������������������������������������������������������������������������������

364

430

759

560

Net changes during the period except for shareholders’ equity �����������������������������������������������

(198)

76

Total changes during the period ���������������������������������������������������������������������������������������������������

(198)

76

Balance at the end of the period �����������������������������������������������������������������������������������������������������

560

637

151,768

161,768(2,511)(2,597)

Total accumulated other comprehensive income:Balance at the end of the previous period �����������������������������������������������������������������������������������
Changes during the period

Subscription rights to shares:
Balance at the end of the previous period ���������������������������������������������������������������������������������������
Changes during the period

Minority interests:
Balance at the end of the previous period ���������������������������������������������������������������������������������������
Changes during the period

Total net assets:
Balance at the end of the previous period ���������������������������������������������������������������������������������������
Changes during the period
Cash dividends �������������������������������������������������������������������������������������������������������������������������������
Net income �������������������������������������������������������������������������������������������������������������������������������������

9,543

7,173

Repurchase of treasury stock ���������������������������������������������������������������������������������������������������������

(3,002)(3,000)

Disposal of treasury stock �������������������������������������������������������������������������������������������������������������

6,390

393

Changes of scope of consolidation �����������������������������������������������������������������������������������������������

(406)

—

Reversal of unrealized gain (loss) on land revaluation �����������������������������������������������������������������

556

(159)

Net changes during the period except for shareholders’ equity �����������������������������������������������

(571)

995

Total changes during the period ���������������������������������������������������������������������������������������������������

9,999

2,806

Balance at the end of the period �����������������������������������������������������������������������������������������������������

¥161,768¥164,574

COMSYS Holdings Corporation
Annual Report 2012

To Contents

COMSYS Holdings Corporation and Consolidated Subsidiaries
Years ended March 31, 2011 and 2012

5,887
30
(742)
(3,002)0(2,511)
(4)
(21)
(364)
(0)
(5,369)23,005¥ 17,635(6,260)—(393)(3,000)378(2,597)(2)(26)(11,901)1
15,81817,635¥ 33,454

Information———(4,076)(1,960)
482
(3)
497
331
(4,015)

Financial Statements

1,079
6
62
(6,162)
(822)
1,783
(192)
633
55
(3,418)Topics

603
(22)
132

Corporate Social
Responsibility (CSR)

60
(162)
239

Corporate
Governance¥ 12,267
4,640
4
479
(126)
(369)
(194)
14
21,2502,255(6,831)
718
1,279
—
—
108
35,496195(12)(3,945)31,734

Information on
Major Subsidiaries¥ 11,193
5,043
1,841
675
(263)
(235)
(205)
22
(15,297)
3,346
2,425
(1,078)(2,687)(7,543)
3,827
171
1,237
205
(22)
(3,006)(1,585)

Review of Operations

Cash and cash equivalents received on interest and dividends income ���������������������������������������Cash and cash equivalents paid for interest expenses �������������������������������������������������������������������Cash and cash equivalents paid for income taxes ���������������������������������������������������������������������������
Net cash provided by operating activities ���������������������������������������������������������������������������������������Cash flows from investing activities:
Decrease in time deposits, net ���������������������������������������������������������������������������������������������������������
Payment for purchases of investment securities �����������������������������������������������������������������������������
Proceeds from sale of investment securities �����������������������������������������������������������������������������������
Proceeds from acquisition of stocks of subsidiaries resulting in changes
in scope of consolidation �����������������������������������������������������������������������������������������������������������������
Proceeds from sale of stocks of subsidiaries resulting in changes in scope of consolidation �����
Proceeds from sale of stocks of subsidiaries �����������������������������������������������������������������������������������
Acquisitions of property and equipment �����������������������������������������������������������������������������������������
Acquisitions of other assets ���������������������������������������������������������������������������������������������������������������
Proceeds from sale of property ���������������������������������������������������������������������������������������������������������
Increase in long-term loans ���������������������������������������������������������������������������������������������������������������
Collection of long-term loans �����������������������������������������������������������������������������������������������������������
Other, net �������������������������������������������������������������������������������������������������������������������������������������������
Net cash used in investing activities �������������������������������������������������������������������������������������������������Cash flows from financing activities:(Decrease) increase in short-term borrowings, net �������������������������������������������������������������������������
Proceeds from long-term loans payable �����������������������������������������������������������������������������������������
Repayment of long-term debt �����������������������������������������������������������������������������������������������������������
Acquisitions of treasury stock �����������������������������������������������������������������������������������������������������������
Proceeds from sale of treasury stock �����������������������������������������������������������������������������������������������Cash dividends paid ���������������������������������������������������������������������������������������������������������������������������Cash dividends paid to minority shareholders ���������������������������������������������������������������������������������
Repayment of financial lease �������������������������������������������������������������������������������������������������������������
Net cash used in financing activities �������������������������������������������������������������������������������������������������
Effect of exchange rate changes on cash and cash equivalents �������������������������������������������������
Net increase (decrease) in cash and cash equivalents �������������������������������������������������������������������Cash and cash equivalents at beginning of year �����������������������������������������������������������������������������Cash and cash equivalents at end of year ���������������������������������������������������������������������������������������

Millions of yen
2012

Business at a Glance

Cash flows from operating activities:
Income before income taxes and other adjustments to net income ���������������������������������������������
Depreciation and amortization ���������������������������������������������������������������������������������������������������������
Loss on impairment of fixed assets ���������������������������������������������������������������������������������������������������
Write-down of investments in securities �������������������������������������������������������������������������������������������
Decrease in allowance for doubtful receivables �����������������������������������������������������������������������������
Decrease in accrued severance indemnities �����������������������������������������������������������������������������������
Interest and dividends received �������������������������������������������������������������������������������������������������������
Interest expenses �������������������������������������������������������������������������������������������������������������������������������
(Increase) decrease in receivables—trade ���������������������������������������������������������������������������������������
Decrease in inventories ���������������������������������������������������������������������������������������������������������������������
(Decrease) increase in payables—trade �������������������������������������������������������������������������������������������
Decrease (increase) in other assets ���������������������������������������������������������������������������������������������������
Increase (decrease) in other liabilities �����������������������������������������������������������������������������������������������
Gain on negative goodwill �����������������������������������������������������������������������������������������������������������������
Write-down on software ���������������������������������������������������������������������������������������������������������������������
Other, net �������������������������������������������������������������������������������������������������������������������������������������������

2011

President’s Message

Consolidated Statements of Cash Flows

35

36

COMSYS Holdings Corporation
Annual Report 2012

To Contents

Summary of Business Results and Financial Data
Since its Establishment
Years ended March 31

Net Sales(Millions of yen)

400,000
293,681300,000

336,518

307,485

327,526

321,185

293,086

315,480

295,851

300,000

248,960

200,000
100,000
0

04

05

06

07

08

09

16,29815,61010

11

12

12,54011,785

12,592

10

11

12

13

(Forecast)

Operating Income(Millions of yen)

25,00019,21320,00015,062

15,00016,318

10,786

10,00014,000

5,000
0

04

05

06

07

08

09

13

(Forecast)

Recurring Profit(Millions of yen)

25,00021,12020,00017,14418,753

18,22817,14415,00013,113

11,40012,14012,96914,40010,000
5,000
0

04

05

06

07

08

09

10

11

12

13

(Forecast)

Net Income/Primary Earnings per Share (EPS)(Millions of yen)

(Yen)

200

15,00012,382

12,00011,641

9,000
6,000
3,000
0

160
10,062

10,030

9,543

8,500

8,349
6,591

87.39
45.96

04

n Net Income (Left Scale)

58.42

69.65

83.87

120

7,173

7,097
75.60

73.92
55.50

55.18

67.04

80
40

05

06

07

n Primary Earnings per Share (EPS) (Right Scale)

08

09

10

11

12

13

(Forecast)

0COMSYS Holdings Corporation
Annual Report 2012

To Contents

37
President’s Message

Total Assets
Business at a Glance(Millions of yen)

250,000
211,718

208,68004

05

200,000

220,785229,953

224,121220,651

07

08

09

237,436

228,135

211,809

150,000
100,000

0

06

10

11

Review of Operations

50,00012

Net Assets/Shareholders’ Equity Ratio(%)

200,00085

150,000

128,062

121,326

150,417

147,005

137,160

151,775
68.4%

66.5%

100,000

75

71.7%
67.7%

63.4%

62.1%

61.4%

164,574

161,768

151,768
71.2%

65

Information on
Major Subsidiaries(Millions of yen)

57.3%

55

50,00004

n Net Assets (Left Scale)

05
n

06

07

08

09

10

11

Corporate
Governance

0

45

12

Shareholders’ Equity Ratio (Right Scale)

Return on Equity (ROE)(%)

Corporate Social
Responsibility (CSR)

9
8.8%

8

7.9%

7.6%

7

6.7%

6.7%

6.1%

5.7%

6
5

4.4%

04

05

06

07

08

09

10

11

Topics

4.7%

4

12

Dividends per Share/Acquisitions of Treasury Stock/Consolidated Payout Ratio(Yen)

(Thousand shares)

20.00

20
15
10

26.1%

15.00

*1

17.00

17.00

19.5%

20.3%

15.00

25.7%

4,386

20.00

20.00

36.0%

29.8%

12,000
9,000

27.1%

5,544

*2

20.00

36.2%

26.5%

21.5%

7.00

20.00

5,250
3,612

5

4,500

3,526

6,000

Financial Statements

15,000

25

3,000

998

04

n Interim Dividend (Left Scale)05

06

n Year-End Dividend (Left Scale)

07

08

09

n Acquisitions of Treasury Stock (Right Scale)*1: Includes a ¥3 commemorative dividend to mark the fifth anniversary of the Company’s establishment.
*2: Includes a ¥3 special dividend paid to reflect the benefits of the merger.

10
n

11

Consolidated Payout Ratio

12

13(Forecast)

0

Information

038

COMSYS Holdings Corporation
Annual Report 2012

To Contents

COMSYS Holdings Information
Corporate Data

Corporate History

As of March 31, 2012

Name:

COMSYS Holdings Corporation
Head Office:17-1, Higashigotanda 2-chome, Shinagawa-ku,
Tokyo 141-8647, Japan

October 2010

Management integration of TSUKEN Corporation.
June 2009

Minimum share purchase unit reduced from 1,000 shares to
100 shares.

URL:

http://www.comsys-hd.co.jp/english/

April 2009

Date of Establishment:

The information systems business related to software development outsourcing was spun off from Nippon COMSYS
Corporation to form COMSYS JOHO SYSTEM Corporation.

September 29, 2003
Paid-in Capital:¥10 billion

April 2007

9,758 (Consolidated)

COMSYS Holdings Corporation converted COMSYS Shared
Services Corporation, previously a consolidated subsidiary of
Nippon COMSYS Corporation, into a wholly owned consolidated
subsidiary in order to clarify its role as a common provider ofbusiness process outsourcing services for the COMSYS Group.

Directors and Auditors

October 2005

As of June 28, 2012COMSYS Holdings Corporation converted Kokusai DensetsuCo., Ltd. (now COMSYS WING Corporation) into a wholly owned
subsidiary through a stock exchange, and made Kokusai
Densetsu a wholly owned subsidiary of Nippon COMSYS
Corporation on the same day.

Number of Employees:

President and Representative Director
Hajime Takashima(President and Representative Director of Nippon COMSYS Corporation)

Directors
Noriaki Itoh

(Executive Vice President of Nippon COMSYS Corporation)

Yoji Oku(President and Representative Director of SANWA COMSYS Engineering
Corporation)

April 2005

SANWA ELEC Co., Ltd. was renamed SANWA COMSYSEngineering Corporation.
January 2005

Yoneki Tahara

The NTT Information Telecommunication Engineering Businessof SANWA ELEC Co., Ltd. was centralized at Nippon COMSYS
Corporation.

Masaru Kudo

September 2004

Hidetoshi Miura(President and Representative Director of TOSYS Corporation)(President and Representative Director of TSUKEN Co., Ltd.)(President and Representative Director of COMSYS JOHO SYSTEM
Corporation)

Yoshihiro Mimata
Hirofumi Yamasaki
Akio Ogawa
Tatsufumi Nakajima

COMSYS Holdings Corporation subscribed to a third-party
allotment of shares by SANWA ELEC Co., Ltd.
September 2003

COMSYS Holdings Corporation listed its shares on the First
Section of the Tokyo Stock Exchange and Osaka Securities
Exchange.

Tomoaki Yamamoto
Takeshi Gotoh
Corporate Auditor
Akiyoshi Sekiguchi

September 2003

Nippon COMSYS Corporation delisted its shares in line with theestablishment of the holding company.

(Standing Auditor)

March 2002

Auditors

Nippon COMSYS Corporation was selected as one of the 225
components of the Nikkei Stock Average.

Hideki Niimi
Masahiko Miyashita*
Masahiro Takeshita*
Kichiroh Akino** Outside auditors( ): Concurrent positions held

December 2001

Nippon COMSYS Corporation celebrated its 50th founding
anniversary.
July 1990

The Company was renamed Nippon COMSYS Corporation.

To Contents

COMSYS Holdings Corporation
Annual Report 2012

President’s Message

Organization Chart
As of June 28, 2012

Board of Directors
President

Senior Management Committee
CSR Committee

Risk Management Committee
Personal Information Protection
and Administration Committee

IR Department

Finance & Accounting
Department

General Affairs
Department

Personnel
Department• General Affairs Unit
• Legal Unit
• PR Unit• CSR Office• Corporate Planning Unit
• Corporate Strategy Unit
• Strategy Planning Unit
• Corporate Information Unit

Internal Control
Audit Department• Internal Control Office• Internal Audit Office

Corporate
Governance

Wakkanai
Asahikawa

Kitami
KushiroOtaru

Hokkaido
ObihiroTomakomai

TohokuSendai

Kanto NakaNIIGATANAGANO

NaganoUeda/Saku/Chushin/Nanshin

Tochigi
TOKYO
Chiba
Kanagawa

Chugoku
KyushuShizuoka

Tokai

Nishi Nippon
Takamatsu
Shikoku

Jakarta Branch Office

Head Office/COMSYS Holdings Corporation
Head Office/Nippon COMSYS Corporation
Head Office/SANWA COMSYS Engineering Corporation
Head Office/TOSYS Corporation
Head Office/TSUKEN Corporation
Head Office/COMSYS JOHO SYSTEM Corporation

Branch/SANWA COMSYS Engineering Corporation
Branch/TOSYS Corporation
Branch/TSUKEN Corporation
Branch/COMSYS JOHO SYSTEM Corporation

Information

Branch Office/TOSYS Corporation
Branch/Nippon COMSYS Corporation

Financial Statements

Kansai

Okinawa

TopicsNiigataCorporate Social
Responsibility (CSR)

Muroran
Hakodate

Hokuriku

Information on
Major Subsidiaries

Corporate Planning
Department

Review of Operations

Compliance Committee

Business at a Glance

Board of Corporate Auditors

39

40

COMSYS Holdings Corporation
Annual Report 2012

To Contents

Our Group Formation
The COMSYS Group’s (COMSYS Holdings and its subsidiaries and afﬁliates) main businesses compriseelectrical and telecommunications infrastructure construction services centered on telecommuni­
cations infrastructure and electrical facilities and other businesses, including the information­processing-related business. As of March 2012, the Group included 50 consolidated subsidiaries.

Nippon COMSYS
Corporation

SANWA COMSYSEngineering Corporation

TOSYS Corporation

Address:
17-1, Higashigotanda 2-chome,
Shinagawa-ku,
Tokyo 141-8647, Japan

Address:
12-3, Koenji-Minami 2-chome,
Suginami-ku,
Tokyo 166-0003, Japan

Address:
1108-5, Higashiyama Aza,
Watauchi, Wakaho, Nagano City,
Nagano 381-0193, Japan

Establishment:
December 1951

Establishment:
September 1947

Establishment:
January 1960

Number of Employees:
Consolidated4,683
Non-Consolidated3,212

Number of Employees:
Consolidated1,540
Non-Consolidated776

Number of Employees:
Consolidated1,037
Non-Consolidated699

URL:
http://www.comsys.co.jp/

URL:
http://www.sancom-eng.co.jp/

URL:
http://www.tosys.co.jp/

Number of Consolidated
Subsidiaries:
13 companies

Number of Consolidated
Subsidiaries:
3 companies

Number of Consolidated
Subsidiaries:
4 companies

Consolidated Subsidiaries:

Consolidated Subsidiaries:

Consolidated Subsidiaries:

Tokyo Tsuken Co., Ltd.

SANWA Denshi Inc.

Alstar Co., Ltd.

SEC Hi Tec Co., Ltd.

TOSYS Niigata Co., Ltd.

SUNCOM Technology Corporation

TOSYS Actis Co., Ltd.

Nitto Tsuken Co., Ltd.
COMSYS Engineering Co., Ltd
WINTIQ Co., LtdCOMSYS Kansai Engineering Co., Ltd.
COMSYS Kyushu Engineering
Co., Ltd.
Tokushima TsushinkensetsuCo., Ltd.
Tsushin Densetsu Co., Ltd.
Nihonkai TsushinkensetsuCo., Ltd.
COMSYS Net Corporation
COMSYS Tohoku TechnoCo., Ltd.
COMSYS Tsusan Co., Ltd.
Taiei Seisakusho Co., Ltd.

Tulip Life Co., Ltd.

To Contents

COMSYS Holdings Corporation
Annual Report 201241
President’s Message

Address:
17-1, Higashigotanda 2-chome,
Shinagawa-ku,
Tokyo 141-8647, Japan

Establishment:
April 1951

Establishment:
April 2009

Establishment:
October 2003

Number of Employees:
Consolidated1,808
Non-Consolidated478

Number of Employees:
Consolidated502
Non-Consolidated364

Number of Employees:
Non-Consolidated144

URL:
http://www.tsuken.co.jp/

URL:
http://www.comjo.co.jp/

Number of Consolidated
Subsidiaries:
12 companies

Number of Consolidated
Subsidiaries:
1 company

Consolidated Subsidiaries:

Consolidated Subsidiary:

TSUKEN ADVANCED SYSTEMSCORPORATIONCOMSYS Techno Co., Ltd.

TSUKEN TECHNOLOGY Co., Ltd.

Topics

TSUKEN Techno Net Co, Ltd.

URL:
http://www.comsys-ss.co.jp/

Corporate Social
Responsibility (CSR)

Address:
23-14, Takanawa 3-chome,
Minato-ku,
Tokyo 108-0074, Japan

Corporate
Governance

Address:
6-8, Hondori 19-chome Minami,
Shiraishi-ku,
Hokkaido 003-0026, Japan

Information on
Major Subsidiaries

COMSYS Shared Services
Corporation

Review of Operations

COMSYS JOHO SYSTEM
Corporation

Business at a Glance

TSUKEN Corporation

TSUKEN Act Corporation
TSUKEN BUSINESS CO., LTD.
TSUKEN-Sepia Co., Ltd.
TSUKEN Hartec Corporation
TSUKEN Douou Engineering Corporation
TSUKEN Douhoku Engineering Corporation
TSUKEN Doutou Engineering Corporation
TSUKEN Dounan Engineering Corporation

Financial Statements

Hokutoudensetsu Corporation

Information

42

COMSYS Holdings Corporation
Annual Report 2012

To Contents

Fiscal Year-End:
March 31, 2012
Annual Shareholders’ Meeting:June 28, 2012

Number of Shareholders:
10,914

Stock Exchange Listings:
First Section of the Tokyo Stock Exchange
and Osaka Securities Exchange(Securities code: 1721)

Auditor:GYOSEI & CO.
For Further Information on This Annual Report,

Percentage
of Total (%)

12,328

8.44

10,264

7.03

6,834

4.68

5,166

3.53

3,441

2.35

3,025
2,977
2,830

2.07
2.04
1.93

Bank of New York GCM Client Account JPRD ISG(FE-AC)

2,039

1.39

COMSYS Holdings Corporation Employee ­Shareholder Association

1,873

1.28

Japan Trustee Services Bank, Ltd.
(Trust Account)
The Master Trust Bank of Japan, Ltd.
(Trust Account)
Japan Trustee Services Bank, Ltd.
(Mitsui Asset Trust and Banking Company
Retrust Portion, Fujikura Ltd.
Employee Pension Trust)Japan Trustee Services Bank, Ltd.
(The Sumitomo Trust & Banking Co., Ltd.
Retrust Account, Sumitomo ElectricIndustries, Ltd. Employee Pension Trust Account)
Trust & Custody Services Bank, Ltd.
(Investment Trust Account)
Japan Trustee Services Bank, Ltd.
(Trust Account 9)
Nippon Life Insurance Company
JPMorgan Securities Japan Co., Ltd.

Composition of Shareholders:
As of March 31, 2012n Securities Companies

7.1%

n Financial Institutions

42.2%

n Domestic Companies

8.4%

n Foreign Companies
and Individuals

16.3%

n Individuals and Others

26.0%
Corporate Social
Responsibility (CSR)

Stock Price Range and Monthly Trading Volume120,000

1,100

110,000

1,000

100,000

900

90,000800

80,000700

70,000600

60,000500

50,000400

40,000300

30,000200

20,000100

10,000Information

0

10/4 10/5 10/6 10/7 10/8 10/9 10/10 10/11 10/12 11/1 11/2 11/3 11/4 11/5 11/6 11/7 11/8 11/9 11/10 11/11 11/12 12/1 12/2 12/3 (Month)

Financial Statements(Thousands of Shares)

Topics

(Yen)
1,200

n n Stock Price (Left Scale)   n Monthly Trading Volume (Right Scale)Corporate
Governance

Please Contact
IR Department
Tel: +81-3-3448-7000 (direct)
Fax: +81-3-3448-7001
E-Mail: chd-ir@comsys.co.jp

0Information on
Major Subsidiaries

Transfer Agent:
Mitsubishi UFJ Trust and Banking Corporation
Securities Department
10-11, Higashisuna 7-chome, Koto-ku, Tokyo 137-8081

Shares Held(Thousands)

Shareholders

Review of Operations

Date of Listing:
September 2003

As of March 31, 2012

Business at a GlanceCommon Stock:
Authorized: 580,000,000 shares
Issued: 145,977,886 shares

Major Shareholders:President’s Message

Investor Information