COMSYS WAY
Advance of structural reforms and top-line growth

Annual Report 2017
Fiscal Year Ended March 31, 2017

COMSYS Holdings Corporation

Contents

01

Profile02

President’s Message

04

Progress on Medium- to Long-Term Management Strategy“COMSYS WAY ”

05

Topics06

Five Integrated Business Groups

08

Business at a Glance

10

Review of Operations and Outlook
10 NTT Engineering Business
10 NCC Engineering Business
11 IT Solutions Business
11 Social System-Related Business and Other

12

Corporate Governance17

Corporate Social Responsibility (CSR)

18

Financial Statements*
18 Consolidated Balance Sheets
20 Consolidated Statements of Income
21 Consolidated Statements of Changes in Net Assets
23 Consolidated Statements of Cash Flows
24 Ten-Year Summary of Business Results and Financial Data

26

Information

How to Use

26 COMSYS Holdings Information
28 Investor 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 otherstatements that are 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 areContents
To Contents

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.

Left-click tabs at the right-hand edgeof the page to jump to the relevant
section.

1

COMSYS Holdings Corporation Annual Report 2017

ProfileProfilecompany through share transfers from three companies—Nippon COMSYS Corporation, SANWA

President’s
Message

COMSYS Holdings Corporation (the “Company”) was established in September 2003 as a holding
ELEC Co., Ltd. (now SANWA COMSYS Engineering Corporation) and HIGASHI NIHON System
Company and 44 subsidiaries and 5 affiliates, in addition to 5 core operating subsidiaries, specifically
Nippon COMSYS Corporation, SANWA COMSYS Engineering Corporation, TOSYS Corporation,
TSUKEN Corporation and COMSYS JOHO SYSTEM Corporation.
which is the carrier-related business, to encompass the construction of diverse infrastructure that is
the foundation of social and economic activity. That includes the non-carrier related businesses ofsolar power.

Review ofOperations andOutlook

COMSYS Group Management Philosophy

Business at a
Glanceurban infrastructure development and ICT-related construction and renewable energy, which includes

Five Integrated
Business Groups

The COMSYS Group’s business territory goes beyond communications infrastructure construction,

Progress on Medium- to
Long-Term Management
Strategy / Topics

Construction Co., Ltd. (now TOSYS Corporation). The COMSYS Group (the “Group”) consists of the

Corporate
Governancestrive for strong partnership and collaboration with diverse external players
in achieving our management philosophy.

To Contents

We will continue with unrelenting reformin our aim to further increase corporate value.

Information

We will contribute to our country and local communities bybuilding social infrastructure that supports affluent lifestyles.

Financial
Statements

We will build a company that customers continue
to choose through the construction of diverse infrastructurethat carries our era forward.

Corporate Social
Responsibility(CSR)

At the COMSYS Group, we are united as a Group and2

COMSYS Holdings Corporation Annual Report 2017

President’s Message

We will evolve into an
unrivaled Group as a dominant leader
in telecommunications construction anda “comprehensive engineering enterprise”
with strengths in telecommunications
construction.
September 2017

Takashi Kagaya
President and Representative Director

I was appointed as President and Representative Director

My Role and Thoughts onof COMSYS Holdings in June 2017.

Operations Looking Ahead

To start, I will report on our performance in fiscal 2017.

COMSYS Group Performance in

As a leading company in the telecommunications construction industry, the COMSYS Group has been playing a

Fiscal 2017

pivotal role in the construction of Japan’s telecommunica-

In fiscal 2017, the COMSYS Group’s net sales grew 4.2%

data traffic.

tions infrastructure to support rapidly growing mobile andyear on year to ¥334.1 billion, buoyed by strong perfor-

In recent years, the Group has also been taking steps

mance in the NTT fixed-line business. Operating income

to evolve into a “comprehensive engineering enterprise”

rose 5.0% year on year to ¥25.0 billion, mainly reflecting

handling a wide array of social infrastructure construction.

productivity improvement from structural reforms. Never-In this respect, we have been to working to meet demand

theless, net income attributable to owners of parent

for telecommunications infrastructure construction in the

declined 6.1% year on year to ¥14.4 billion, owing mainly

information and communications domain, which is becom-

to the posting of an extraordinary loss for the amortization

ing more diverse and sophisticated each day. At the sameof goodwill.

time, we have been actively engaging in M&As and taking

As for shareholder returns, we paid an annual dividendof ¥40 per share, consisting of an interim dividend of ¥20

on challenges in new business domains such as renewableenergy and water supply and sewerage.

To Contents

per share and a year-end dividend of ¥20 per share, andI believe that my role as the new president is to further

acquired ¥8.0 billion in treasury stock during the fiscal year

accelerate the measures pushed forward under the former

under review in line with our profit returns and capitalpresident Hajime Takashima’s strong leadership to propel

policy.

the COMSYS Group to the next stage of growth.

3

COMSYS Holdings Corporation Annual Report 2017

Profilequality. It goes without saying that safety and quality should

to rise 13.7% year on year to ¥380.0 billion, supported by

be prioritized above all as the foundation for the COMSYS

continued high volumes of work in progress carried for-Group’s business. To maintain and augment our relation-ward, and operating income to grow 13.8% year on year

ships of trust with customers, we will remain committed toto ¥28.5 billion, reflecting ongoing structural reforms andmobilizing the Group’s collective strengths in the pursuit

efforts to raise construction work efficiency and lowerof safety and quality.

expenses. We plan to increase the annual dividend by ¥10

We will also continue to focus on maximizing our ability
to win orders and generate earnings. Specifically, we will

per share to ¥50 per share. In addition, COMSYS Holdings
intends to acquire up to ¥5.0 billion of treasury stock.

business fields with a view to top-line growth. At the same

Heading for a New Growth Stagetime, we will laterally link Group companies’ strengths in
COMSYS Holdings looks to achieve its current medium- to

the Group’s overall power and bolster our capacity forlong-term targets ahead of time in 2020, and has started

securing orders to win out in tough competition acrossformulating a new roadmap with an eye to our vision forindustries.

2020 onward. We will keep striving to evolve into an
unrivaled Group as a dominant leader in telecommunica-

By incorporating our current structural reform platforms

tions construction and a “comprehensive engineering

even deeper into the COMSYS Group, we will take effi-

enterprise” with strengths in telecommunications

ciency to the next level. In particular, we will implement

construction.

work style reforms utilizing ICT to realize higher productivity
diverse personnel.
We will boost our corporate value through these

initiatives at COSMYS Holdings.
* T he figure for the consolidated earnings forecast for the fiscal year
ending March 31, 2018 reflects the figure in the revised plan announced
on August 4, 2017.

Corporate
Governanceand create ways to solve labor shortage issues and secure

We invite all our stakeholders to look forward to our

Review ofOperations andOutlook

A further focus is to increase efficiency and productivity.

Business at a
Glancesales, construction execution, and technology to harness

Five Integrated
Business Groups

aggressively pursue M&As in the social systems and IT

Progress on Medium- to
Long-Term Management
Strategy / Topics

the form of dividends. In fiscal 2018, we expect net sales
President’s
MessageFirstly, we will work to ensure and enhance safety andmeasures and deliver returns to all of our shareholders in
Corporate Social
Responsibility(CSR)

Operating Results by Year
(Millions of yen)

400,000

40,000380,000
331,341

316,092

300,000

328,631
8.4%

27,570334,163

320,654

28,50027,674
7.5%

7.4%

8.3%
22,54725,03630,0007.5%

23,84920,000100,000

10,000013■ Net Sales (Left Scale)

14■ Operating Income (Right Scale)

15■

Operating Margin16

17

18 (Forecast)(Years ended March 31)

0

To Contents

200,000

Information

7.1%

Financial
Statements(Millions of yen)

4

COMSYS Holdings Corporation Annual Report 2017

Progress on Medium- to Long-Term Management Strategy “COMSYS WAY ”

COMSYS WAY(advanced etc.)

The COMSYS Group has made further progress on its COMSYS WAY medium- to longterm management strategy centered on top-line growth and advancing structural reforms.
More specifically, the Group is tackling the following issues.

1 Actively increase orders received in response to higher public investment and investment in ICT

Top-Line
Growth2 Actively expand the green innovation business, including the solar power business3 Pioneer new business areas with a focus on the Smart Community
4 Seek out M&A opportunities and enhance business alliances
1 Mobilize personnel for growth businesses

PromoteStructural
Reforms

2 Maximize the use of human resources by fostering multi-skilled employees
3 Improve labor productivity through workstyle reforms
4 Strengthen integrated sales and project construction systems at Group companies
5 Utilize a construction IT platform that provides comprehensive management fromreceipt through to project management

Progress of COMSYS WAY(Years ended March 31)

COMSYS
WAY

202X(Target)

2014

2015

2016

2017

Net sales

Net sales

Net sales

Net salesbillionbillionbillionbillionbillionor more

¥331

¥328

¥320

¥334

Net sales

¥

400

2014

2015

2016

2017

202X
(Target)Operating income¥275 billion¥276 billion¥238 billion¥250 billion¥300 billion

Ratio of net sales from
non-carrier business

28.0%

33.2%

34.6%

36.6%

50.0%

• Introduction of
information technology and standardized workflow
to new consolidated companies• Centralization of
AC backyard
operations(social systems, IT solutions)

Achievement in
structural reforms• Amalgamation of
TSUKEN accessrelated subsidiaries• Operation of
construction IT
platform• Amalgamation of
TOSYS accessrelated subsidiaries• Nationwide movement of personnel

To Contents• IT platform development ofmobile-related
construction• Enhancement of
quantity survey
system within theGroup• Centralization ofoperation centers

5

COMSYS Holdings Corporation Annual Report 2017

ProfileTopicsCOMSYS Holdings decided at the Board of Directors

The COMSYS Group is dramatically realigning its construc-meeting on March 23, 2017 to conduct a share exchangetion sites, aiming to further enhance construction quality

in which the Company was to become a wholly-owningand cut costs by strengthening its operating structure.
In the Chushin area of Nagano Prefecture, the TOSYS

a wholly owned subsidiary company in share exchange,

Matsumoto Building (Matsumoto City, Nagano Prefecture)and entered into a share exchange agreement with Kando

has been completed. The new key base for the areaon the same date.

consolidates five sites of six companies including Nippon

The share exchange took place on July 1, 2017, andoperations on June 1, 2016.
Also, in the Kyushu area, Nippon COMSYS Corpora-of Tokyo Gas Co., Ltd., Kando engages in a wide range

tion’s Fukuoka Techno Station (Chikushino City, Fukuoka

of operations from the pipe laying business to the urban

Prefecture) has been completed. It brings together four

facility business. Kando has especially extensive expertisesites of four previously dispersed companies including

and experience in gas infrastructure construction and has

Nippon COMSYS Corporation and SANWA COMSYS

earned strong trust from customers.

Engineering Corporation. Operations at the new site

By having Kando and Nippon COMSYS Corporation’s

began on July 11, 2016.

will seek to maximize synergies from personnel exchange

operations by centralizing administrative tasks to revise

and enhancement of our lineup of infrastructure construc-construction work systems, eliminating overlapping busi-

tion services including telecommunications, electricity,ness processes to make operations more efficient, andwater supply and sewerage, and gas as we push forward

maximizing resources to develop multi-skilled engineers.

with our growth strategy as a Group.
Overview of Kando co., Ltd.

Address:

Naitomachi, Shinjuku-ku, Tokyo

President andRepresentative Director:

Manabu Fukumoto

Paid-In capital:¥448 million

Net sales:¥35,819 million (fiscal 2016, consolidated)

Establishment:

April 14, 1948

Number of employees:

1,422 (as of March 31, 2016, consolidated)

TOSYS Matsumoto Building

Information

Kando co., Ltd.

Financial
Statements

Name:

Corporate Social
Responsibility(CSR)

Through such business site realignment, we will improve

Corporate
Governancetechnological capabilities complement each other, we

Review ofOperations andOutlooktion on that date. As a designated construction company

Business at a
GlanceKando became a subsidiary of Nippon COMSYS Corpora-

COMSYS Corporation and TOSYS Corporation. It started

Five Integrated
Business Groupsparent company in share exchange and Kando co., Ltd.

Progress on Medium- to
Long-Term Management
Strategy / Topics

Ongoing Operational Improvement
via Construction Site Consolidation

President’s
Message

Conclusion of Share Exchange
Agreement with Kando co., Ltd.

Fukuoka Techno Station

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6

COMSYS Holdings Corporation Annual Report 2017

Five Integrated Business Groups

The main businesses of the COMSYS Group(COMSYS Holdings and its subsidiaries andaffiliates) comprise the installation of electricaland telecommunications facilities and equipment, and the information processing-related
business. As of March 2017, the Group included
NipponCOMSYS
Corporation

SANWA
COMSYS
Engineering
Corporation

TOSYS
Corporation

TSUKEN
Corporation

Nippon COMSYS
Corporation

Business Activities
With its primary customers consisting of the NTT
Group, public offices, and private enterprises,
the Nippon COMSYS Group is engaged in the
installation of electrical and telecommunications
facilities and equipment on a nationwide scale.

SANWA COMSYSEngineering Corporation

Business Activities
With its primary customers consisting of theKDDI Group and the SoftBank Group, the
SANWA COMSYS Engineering Group is engaged
in the installation of electrical and telecommunications facilities and equipment on a nationTo Contents

wide scale.

COMSYSJOHOSYSTEM
Corporation

55 companies.

Address:
17-1, Higashigotanda 2-chome, Shinagawa-ku,
Tokyo 141-8647, Japan
Establishment:
December 1951
Number of Employees:
Consolidated 5,164
Non-Consolidated 2,901
URL:
http://www.comsys.co.jp/(Japanese only)
Number of Consolidated Subsidiaries:
19 companies

Address:
12-3, Koenji-Minami 2-chome, Suginami-ku,
Tokyo 166-0003, Japan
Establishment:
September 1947
Number of Employees:
Consolidated 1,450
Non-Consolidated 705
URL:
http://www.sancom-eng.co.jp/(Japanese only)
Number of Consolidated Subsidiaries:
3 companies

7

COMSYS Holdings Corporation Annual Report 2017

ProfileWith the NTT Group as its primary customer,
the TOSYS Group is engaged in the installationof electrical and telecommunications facilities
and equipment, mainly in Nagano and Niigata.

the TSUKEN Group is engaged in the installationand equipment, mainly in Hokkaido.

the COMSYS JOHO SYSTEM Group is primarily
engaged in the software development business,
mainly in Tokyo.

Information

With the NTT Group as its primary customer,

Financial
Statements

Business Activities

To Contents

Address:
23-14, Takanawa 3-chome, Minato-ku,
Tokyo 108-0074, Japan
Establishment:
April 2009
Number of Employees:
Consolidated 532
Non-Consolidated 376
URL:
http://www.comjo.co.jp/(Japanese only)
Number of Consolidated Subsidiaries:
1 company

Corporate Social
Responsibility(CSR)

COMSYS JOHO SYSTEM
Corporation

Corporate
Governanceof electrical and telecommunications facilities

Review ofOperations andOutlookWith the NTT Group as its primary customer,

Business at a
GlanceBusiness Activities

Address:
1-23, Kitashijounishi 15-chome, Chuo-ku Sapporo,
Hokkaido 060-0004, Japan
Establishment:
April 1951
Number of Employees:
Consolidated 1,791
Non-Consolidated 883
URL:
http://www.tsuken.co.jp/(Japanese only)
Number of Consolidated Subsidiaries:
7 companies

Five Integrated
Business Groups

TSUKEN Corporation

Progress on Medium- to
Long-Term Management
Strategy / Topics

Business Activities

Address:
1108-5, Higashiyama Aza, Watauchi, Wakaho, Nagano City,
Nagano 381-0193, Japan
Establishment:
January 1960
Number of Employees:
Consolidated 1,076
Non-Consolidated 634
URL:
http://www.tosys.co.jp/(Japanese only)
Number of Consolidated Subsidiaries:
4 companies

President’s
Message

TOSYS Corporation

8

COMSYS Holdings Corporation Annual Report 2017

Business at a Glance

NTT Engineering
Business

Orders Received/Net Sales(Year ended March 31, 2017)

Respective Areas of Business Operationsof Group Companies
Nippon COMSYS Group■SANCOM GroupTOSYS Group■TSUKEN Group■COMSYS JOHO SYSTEM Group(Billions of yen)
■ Orders received

55.0% 203.5■ Net sales

55.2% 184.5

Primary customers
NTT East and NTT West,NTT Communications, NTT DOCOMO

Business Domains

Business Activities TT access businessNNTT network business■ NTT mobile businessIn the NTT Engineering segment, the Group is mainly engaged in theconstruction of telecommunications infrastructure for the NTT Group, including
the installation of telephone lines and exchange equipment, transition of
power lines underground, and construction of fixed-line broadband andwireless base stations. This is the COMSYS Group’s core business and accounts
for the largest share of Group-wide sales.

NCC Engineering
Business

Orders Received/Net Sales■■(Year ended March 31, 2017)

Respective Areas of Business Operationsof Group Companies
Nippon COMSYS GroupSANCOM Group■TOSYS GroupTSUKEN GroupCOMSYS JOHO SYSTEM Group

Business Domains■

 elecommunications facilityT
construction business with
telecommunications carriers
other than the NTT Group(Billions of yen)Primary customers■ Orders received

7.7%

28.4

■ Net sales

8.2%

27.4

KDDI Group,
SoftBank Group

Business Activities
In the NCC Engineering segment, the Group undertakes construction of
telecommunication and other related facilities for telecommunications carriers
other than the NTT Group.

To Contents

9

COMSYS Holdings Corporation Annual Report 2017

ProfileOrders Received/Net Sales(Year ended March 31, 2017)

14.9%

55.3

■ Net sales

16.5%

55.0

■

SANCOM Group■TOSYS Group■TSUKEN Group■COMSYS JOHO SYSTEM Group■

Primary customers
Various private-sector companies, public
offices and local government authorities

Business Activities

Network Integration (NI) Solutions
System Integration (SI) Solutions■ Software development andcontracted development■ MaintenanceIn the IT Solutions segment, the Group combines its accumulated expertisewith cutting-edge network technologies to provide comprehensive solutions
services in the IT field, ranging from planning proposals regarding optimal
systems integration for customers’ business operations to providing maintenance services.

Social System-Related
Business and Other

Orders Received/Net Sales■■

Business at a
GlanceBusiness Domains

Five Integrated
Business Groups■ Orders received

Nippon COMSYS Group

Progress on Medium- to
Long-Term Management
Strategy / Topics(Billions of yen)

Respective Areas of Business Operationsof Group Companies

President’s
Message

IT Solutions Business

Review ofOperations andOutlook

82.8■ Net sales

20.1%

67.1

■

SANCOM Group■TOSYS Group■TSUKEN Group■COMSYS JOHO SYSTEM Group■

Primary customers
Public offices, local government authorities
and various private-sector companies

 lectrical facility constructionECommunication cable box(C.C. Box) construction■ Civil engineering construction■ Building construction andassociated construction■ Environment and eco-solutions■ Others

In the Social System-Related Business and Other segment, the Group is engaged
in the design and construction of electrical facilities for places such as public
facilities and office buildings; general civil engineering projects and the construction of office buildings, warehouses, factories, and disaster preparation
facilities as well as businesses related to the environment and eco-businesses,
such as solar power generation systems, energy conservation solutions, andother urban infrastructure businesses.

■■

To Contents

Business Activities

Information

Business Domains

Financial
Statements

22.4%

Nippon COMSYS Group

Corporate Social
Responsibility(CSR)(Billions of yen)
■ Orders received

Respective Areas of Business Operationsof Group Companies

Corporate
Governance(Year ended March 31, 2017)

10

COMSYS Holdings Corporation Annual Report 2017

Review of Operations and Outlook

NTT Engineering Business

NCC Engineering Business

Orders Received / Net Sales

Orders Received / Net Sales(Billions of yen)
300

(Billions of yen)
50

■ Orders Received ■ Net Sales

188.4 182.5

203.5

184.5

180.0 184.5

26.9

27.1

28.4

31.0
27.4

■ Net Sales

29.5

25

150

0

■ Orders Received

2016.32017.32018.3(Forecast)0

2016.32017.32018.3(Forecast)Fiscal 2017 Performance and Business Activities

Fiscal 2017 Performance and Business Activities

In the NTT fixed-line business, access business orders received
and net sales both rose. This was mainly due to an increase inuser processes*1 from strong growth in the Hikari Collaboration
business*2, and an increase in cable tunnel*3 repair and othermaintenance undertaken by NTT as a measure to reduce theburden from such work in latter fiscal years.
In the NTT network business, net sales decreased due todelays in electrical construction progress.
In contrast, in the NTT mobile business, we received orders
in advance for negotiation processes for 3.5 GHz band basestation construction, and orders for wireless construction processes surged. However, net sales declined due to tardy construction progress owing mainly to accidents.
As a result, the Group posted net sales of ¥184.5 billion in
the NTT Engineering segment in fiscal 2017, an increase of 1.1%
from fiscal 2016.

In the NCC Engineering business, orders received and net sales
from KDDI (au) grew as orders for negotiations and wirelessconstruction processes for 3.5 GHz band base station construction gained steam. However, orders received and net sales fromthe SoftBank Group declined, owing to ongoing but slightly
reduced downward pressure on unit construction prices fromreverse auctions.
As a result, the Group recorded net sales of ¥27.4 billion in
the NCC Engineering segment in fiscal 2017, up 0.8% from fiscal
2016.

*1 User processes refers to the laying of fiber optic cable at customers’ places.
*2 Hikari Collaboration refers to wholesale fiber-optic broadband service
provided by NTT East and NTT West
*3 Cable tunnel refers to tunnels through which communication cables havebeen laid down.

Outlook for Fiscal 2018
For fiscal 2018, the NTT Group has announced capital investment planscalling for reduction from the previous fiscal year. Despite those plans for
reduced investment, there is strong growth for the Hikari Collaboration
model, and NTT is expected to continue to take the measures to reduceburdens in latter fiscal years that it had been doing in fiscal 2017. In addition,
we expect the business environment to stay brisk for the mobile business,with 3.5 GHz band and 700 MHz band base station construction work.
For fiscal 2018, the Group projects net sales of ¥184.5 billion in the
NTT Engineering segment, on par with the previous fiscal year.

Future Outlook

To Contents

In the NTT Engineering business, we anticipate the constructionof telecommunications infrastructure ahead of the Tokyo Olympic
and Paralympic Games, the moving of power lines undergroundbeing promoted by the Tokyo Metropolitan Government, and ashift to faster broadband for 4K and 8K broadcasts. In addition,
we expect an expansion of services using the fifth-generation
mobile communications platform including high-speed image
processing, automated driving, and the Internet of Things.

Outlook for Fiscal 2018
In fiscal 2018, we expect capital investment plans to grow year
on year at the KDDI and SoftBank Groups.
KDDI (au) plans to bring 3.5 GHz band and 700 MHz band
construction into full swing, while moving ahead with work to
resolve interference with TV reception from use of the 700 MHz
band.
In addition, the SoftBank Group plans 3.5 GHz band basestation construction, and deployment of Massive MIMO with aneye to 5G*4.
For fiscal 2018, the Group projects net sales of ¥29.5 billion
in the NCC Engineering business, an increase of 7.6% from theprevious fiscal year.
*4 5G refers to fifth generation mobile communications standards

Future Outlook
In the NCC Engineering business, we anticipate the constructionof telecommunications infrastructure ahead of the Tokyo Olympic and Paralympic Games, to shift to high-speed broadband
for 4K and 8K broadcasts among cable TV providers, and the
expansion of services using fifth generation mobile communications platform including high-speed image processing, automated driving, and the Internet of Things.

11

COMSYS Holdings Corporation Annual Report 2017

ProfileSocial System-Related Businessand Other

Orders Received / Net Sales

Orders Received / Net Sales■ Orders Received

62.0
52.2

50.7

55.3

55.0

■ Net Sales(Billions of yen)200

■ Orders Received

60.0
117.0

100

40

2017.32018.3(Forecast)

0

60.0

2016.3

67.1

2017.32018.3(Forecast)

In the Social System-Related Business and Other segment,
orders received and net sales both grew. This reflects a boost
from the new consolidation of TOKYO HOSOH KOGYO CO.,LTD., which offset orders for expressway electrical construction
failing to materialize, a decline in consumer solar construction
projects, and orders for overseas projects not coming when we
anticipated.
As a result, the COMSYS Group posted net sales of ¥67.1
billion in the Social System-Related Business and Other segment
in fiscal 2017, growth of 11.7% compared with fiscal 2016.

Outlook for Fiscal 2018

Future Outlook

Financial
Statements

In fiscal 2018, we anticipate growth in public and private sector
demand, reflecting social infrastructure investment looking to
the Tokyo Olympic and Paralympic Games and energy businessas well as steps to strengthen national resilience. We will expand
the scope of our environment and energy business beyond thesolar power generation, electrical installation work including
expressways, and water supply and sewerage-related civil engineering work we have undertaken so far.
Further, in the solar power sales business, we expect net sales
and operating income to rise year on year due to the completionof solar power plants currently under construction.
For fiscal 2018, the Group forecasts net sales of ¥106.0 billion
in the Social System-Related Business and Other segment,
growth of 57.8% from the previous fiscal year.
Kando co., Ltd., which handles gas pipe facility construction
and maintenance, became a subsidiary via an M&A in July 2017.

Corporate Social
Responsibility(CSR)

In the IT Solutions business, the COMSYS Group aims to be a
total service provider trusted by customers by leveraging its
edge in network server and SDX technology over the medium
to long term to create a business expansion cycle. We will also
focus on expanding alliance domains based on the horizontal
collaboration model.
Our ultimate goal is to be a one-stop solutions enterprisecovering the entire spectrum from system design to maintenanceand operations.

Outlook for Fiscal 2018

Corporate
GovernanceIn fiscal 2018, we will keep expanding alliance business in the
public sector as well as education and medical fields. Further,
we will strive to grow orders for software development workfrom vendors and telecommunications carriers as well as solutions business from manufacturers.
For fiscal 2018, the Group projects net sales of ¥60.0 billion
in the IT solutions business, an increase of 8.9% from the previous
fiscal year.

Review ofOperations andOutlook

Fiscal 2017 Performance and Business Activities

In the IT Solutions business, orders received and net sales also
increased, reflecting orders from telecommunications carriers
for software development projects, solutions work for the public
sector and corporations, and growth in alliance business.
As a result, the Group recorded net sales of ¥55.0 billion in
the IT Solutions business in fiscal 2017, up 8.5% from fiscal 2016.

Business at a
GlanceFiscal 2017 Performance and Business Activities

Five Integrated
Business Groups

2016.3

106.0

82.8
64.4

0

■ Net Sales

Progress on Medium- to
Long-Term Management
Strategy / Topics(Billions of yen)
80

President’s
Message

IT Solutions Business

Future Outlook

To Contents* T he figure for the consolidated earnings forecast for the fiscal year
ending March 31, 2018 reflects the figure in the revised planannounced on August 4, 2017.

Information

In the Social System-Related Business and Other segment, we
will keep working to expand existing businesses. We will also
proactively engage in M&As where there are synergies with ourbusinesses.

12

COMSYS Holdings Corporation Annual Report 2017

Corporate Governance

Basic Corporate Governance Philosophy

appropriate information disclosure, promoting theobservance of compliance, strengthening risk manage-

The COMSYS Group recognizes that it is important toment, rigorously implementing the COMSYS Group’s

strengthen corporate governance in order to improvecode of conduct, strengthening internal control, andcorporate value. By striving to achieve this, the COMSYS

contributing to society based on our businessGroup aims to be a company that possesses the ability

activities.

to win the trust and admiration of all stakeholders
through its actual performance.
To do this, the COMSYS Group considers it isOrganizational Structure

essential to establish the transparency and soundnessof corporate management, and makes all possible

The Company transitioned to the company with audit andefforts to entrench measures such as ensuring

supervisory committee system as its corporate governanceDiagram of the COMSYS Group’s Business Execution Framework, Management Monitoring and Internal Control System

General Shareholders’ Meeting
Election / Dismissal

Election / Dismissal

Election / Dismissal

Directors who are Audit andSupervisory Committee members

Form andparticipate

Directors

Form
Cooperation

Audit and Supervisory Committee
Cooperation

Board of Directors
Election /Dismissal / Supervise

Audit and supervise

Independent
Auditor
Audit

Form and participate
Audit andsuperviseInternal Control and
Audit Department
Internal
Audit

Instruct /ReportInstruct /ReportExecutive
Department

Internal Audit /ReportPresident(Senior Management Committee)

VariousCommittees
Management
Monitoring

Deliberate /ReportDisseminate
Information

COMSYS Group
Presidents Committee

To Contents

COMSYS Group
Nippon COMSYS Corporation, SANWA COMSYS Engineering Corporation, TOSYS Corporation,
TSUKEN Corporation, COMSYS JOHO SYSTEM Corporation, COMSYS Shared Services Corporation

13

COMSYS Holdings Corporation Annual Report 2017

ProfileAudit and Supervisory Committee members. In principle,

on June 29, 2017. The system comprises a General Share-

this committee meets once a month to examine, discuss,holders’ Meeting, Board of Directors, Audit and Supervisoryand pass resolutions on issues related to key decisions, in

Committee and other organizations.

an effort to improve the efficiency of business execution.
The heads of each operating department and certain

terized by strengthening the supervisory functions of theother personnel attend meetings of the Senior Manage-

Board of Directors with a structure for conducting rapid

ment Committee as observers, as necessary, to ensure thatdecision-making. The Company aims to achieve these withthey fully understand the basis for all management

the transition to this system, and to further increase its

decisions.

The Board of Directors comprises internal directors wellversed in the Company’s operations and outside directors

Status of the Internal Control System

who monitor management from an independent standThe Company implements its internal control system

Meanwhile, the Company has reinforced auditing functions

based on a “Basic Policy on Establishing an Internalwith its Audit and Supervisory Committee’s members inControl System” that was approved by resolution of theorder to ensure and enhance sound management.

Board of Directors as follows.

ness execution to directors in accordance with the provisions of its Articles of Incorporation and by the resolution

Establishing a Compliance Structureof the Board of Directors.
The Company has formulated its internal Compliancebusiness execution, while allowing the Board of Directors

Program, has set forth Compliance Action Guidelines

to focus exclusively on supervision of businesswithin this framework, and has established the Compli-

execution.

ance Committee.

whom are Audit and Supervisory Committee members,

made up of representatives from the Company and each

including outside directors. The board holds regularof the core operating subsidiaries, as well as all Audit

meetings in accordance with the Board of Directors Rules,

and Supervisory Committee’s members. The committee

as well as ad hoc meetings as required. The meetings areoversees compliance throughout the COMSYS Group,

used to make decisions on statutory matters as well as

and strives to increase the COMSYS Group’s awareness

important matters related to management, and to carryof compliance and establish an effective complianceout supervision of those executing business.

structure through various discussions. All COMSYS

ness segment report to the Board of Directors on progressmittees of their own. These committees work to establish

with business execution based on policies determined byan effective compliance structure by implementing

the Board. Also, each business segment conducts efficient

educational and training programs, as part of efforts tooperational management under the supervision of the

deepen employee understanding of the corporate

responsible director.

philosophy and action guidelines of each respective

The Senior Management Committee is made up of
directors other than outside directors and the standing

COMSYS Group company.

To ContentsGroup companies have set up similar compliance com-

Information

Every quarter, the directors responsible for each busi-

Financial
Statements

This committee, which is chaired by the president, is

Corporate Social
Responsibility(CSR)

The Board of Directors comprises 10 directors and 6 ofCorporate
GovernanceThis system enables swift decision-making and nimble

Review ofOperations andOutlook

The Company delegates important decisions on busi-

Business at a
Glancepoint, with the aim of enhancing management efficiency.

Five Integrated
Business Groups

corporate value.

Progress on Medium- to
Long-Term Management
Strategy / Topics

The audit and supervisory committee system is charac-

President’s
Messagesystem at the 14th General Shareholders’ Meeting, held

14

COMSYS Holdings Corporation Annual Report 2017

Establishing a Risk Management
Structureincluding social contribution activities, as a good
corporate citizen.
The CSR Committee is engaged in CSR activities

In its efforts to maintain and enhance corporate value

addressing various themes, such as compliance, cor-amid a rapidly changing business environment, theporate governance, risk management, information

COMSYS Group is aware that it faces a variety of busi-

disclosure and protection, security countermeasures,

ness risks which must be managed appropriately. There-social contributions and environmental issues.

fore, the Group has established a Risk Management
Committee, chaired by the president and made up of
directors from the Company and each of the core
operating subsidiaries.

Establishing an Information Management
Structure

The Basic Policy on Risk Management was formulated
in order to promote Group-wide risk management.

Important documents and records related to business

Furthermore, similar risk management committees wereactivities and execution of directors’ duties, including

established at each Group company. In this manner,

minutes of the Board of Directors and Senior Manage-efforts are being made to properly address the businessment Committee meetings and other reports, arerisks faced by each Group company, and to minimize

stored and managed appropriately based on laws andthe materialization of each risk.

regulations, as well as the Group’s internal rules.

The Company has formulated Risk Management

Furthermore, in order to improve the efficiency of

Guidelines and Crisis Management Guidelines and will

operations and business execution, after ensuring an

strive to maintain sustainable operations and ensure

adequate level of information security, the Company

steady growth at the Company and the COMSYS Groupis working to deploy various information systems toby practicing effective risk management.

put in place a framework for sharing the latest manage-

For example, the COMSYS Group manages opera-

ment information.

tional risk by ensuring that Group companies work inaccordance with management systems such as ISO 9001,
ISO 14001, ISO/IEC 27001, COHSMS (Construction
Occupational Health and Safety Management System),

Establishing a Group Management
Structureand Privacy Mark certifications given the actual working
environments at each Group company. As a result, theBusiness management of the core operating subsidiar-

COMSYS Group acquires and maintains certification inies, which are the major subsidiaries of the COMSYS

these systems.

Group, is based on the “COMSYS Group Agreement.”
In addition, each core operating company conducts the
management of the subsidiaries in which they have

CSR Activities

directly invested. As regards the business management
to be conducted by the core operating subsidiaries, theTo Contents

The Company and the COMSYS Group have estab-Company possesses a Group operations system thatlished the CSR Committee to coordinate Group-wide

provides guidance and advice as necessary.

CSR activities with the aim of ensuring that the Group

Important management decisions within the COMSYS

actively fulfills its economic and social responsibilities,

Group are reported to and discussed by the Senior

15

COMSYS Holdings Corporation Annual Report 2017

Profileresolute and uncompromising attitude in the face of anyline with Group Operation Standards, which clarify

attempts to form a coercive relationship.

decision-making and reporting rules for the COMSYSThe Company and the COMSYS Group have preparedGroup. In this manner, the Group management andan organizational framework that enables them to blockmonitoring framework is centered on the Company.

the formation of a relationship with any antisocial forces
or groups, and to maintain a resolute and uncompromis-

liaison contacts that cover the entire COMSYS Group,

ing attitude while coordinating with lawyers, the police,

both inside the Company and at a law firm external toand other relevant authorities.

the Company. The Company works to prevent corporate
Group employees and others about facts that may

The Audit and Supervisory Committee

violate laws and regulations. The Company has also
The Company’s internal auditing organization consists

ers by setting up appropriate systems in line with theof an Internal Audit Office and an Internal Control Office

Whistleblower Protection Act.

within the Internal Control and Audit Department.

are carried out appropriately, the directors of each corepolicies based on top management requirements, andoperating subsidiary also participate as members in the

conducts internal audits of the Company and all Groupvarious Group committees established within the Com-

companies. These activities are intended to ensure thatpany, including the CSR Committee, the Compliancebusiness execution is legal and appropriate, and that

Committee and the Risk Management Committee. In

each business risk faced by the Group is minimized,

this way, the COMSYS Group ensures that all policies

while maximizing the quality of business operations.

and decisions discussed by these groups are reported

The Internal Control Office formulates operational

to and thoroughly understood by each Group

internal control policies as regards financial reporting,company.

and provides leadership and evaluates the effectivenessGroup Presidents Committee, which is made up of theof the internal control systems in the Company and theGroup.
The Audit and Supervisory Committee comprises six

tee meets regularly and works to ensure that manage-

members, four of whom are outside directors. To ensure

ment policies and activities are clearly understood by

the effectiveness of the Audit and Supervisory Commit-

all members.

tee’s activities, the Company has established a systemby which the Audit and Supervisory Committee members

Financial
Statements

presidents of COMSYS Group companies. This commit-

Corporate Social
Responsibility(CSR)

In addition, the Group has formed the COMSYS

Corporate
Governance

The Internal Audit Office formulates internal auditing

Review ofOperations andOutlookIn order to ensure that all COMSYS Group operations

Business at a
Glancemade efforts to prevent unfair treatment of whistleblow-

Five Integrated
Business Groups

impropriety by ascertaining reports from COMSYSProgress on Medium- to
Long-Term Management
Strategy / Topics

The Company has established internal reporting

President’s
Message

Management Committee and the Board of Directors inmutually elect a standing Audit and Supervisory Committee member who will attend important internal
meetings and committees such as the Senior Management Committee and the Compliance Committee as a

Company and the COMSYS Group have absolutely no

regular member to ensure that the member can con-relationship with any antisocial forces or groups thatstantly check the status of business execution andthreaten the order and safety of civic society. Moreover,provide opinions.

the Company and the COMSYS Group will maintain a

In addition, based on the rules governing the Audit

To Contents

To fulfill our social responsibility as a company, theInformation

System to Eliminate Antisocial Forces

16

COMSYS Holdings Corporation Annual Report 2017

and Supervisory Committee, directors and employees

Outside Directorsof the Company and the Group are required to reporton major business activities or issues that could affect

The Company has four outside directors, all of whom

the Company’s operations or performance to the Audit

are Audit and Supervisory Committee members.

and Supervisory Committee members.

In appointing outside directors, the Company consid-

Furthermore, under the system, the Audit and Super-ers the conditions for independence specified by thevisory Committee members may request the directors

Companies Act and the Tokyo Stock Exchange, andand employees of the Company and the Group toemphasizes personnel who are able to advise andprovide the above reports or other reports considered

supervise the Company’s management, having either ofnecessary at their discretion.

the following experiences or qualifications.

The Audit and Supervisory Committee members also(1) A person who has served as a corporate officer orhold regular meetings with the president to directly

management team member at another company,

express their views on issues related to business execu-

having a thorough knowledge of corporatetion and other topics.

management

The Audit and Supervisory Committee members of(2) A person with expert knowledge of laws, accounting,

the Company constantly check whether business opera-

and so forthtions are executed appropriately and efficiently by

All of the outside directors have either a wealth ofmaintaining close ties with the Group’s independent

knowledge and wide-ranging insight from their longauditor and the Internal Control and Audit Department.

experience in various industries and as corporate manag-

For example, the Audit and Supervisory Committee

ers, or high-level of ability and insight into the law asmembers accompany the independent auditor andattorneys. They are expected to provide appropriate

others on on-site internal and financial audits as observ-

advice from multiple perspectives.

ers in accordance with the audit plans.

Furthermore, the Company judges that the outside

Furthermore, the Audit and Supervisory Committee

directors will carry out their audits and supervision frommembers hold regular meetings with the corporate

an objective standpoint, and contribute to strengthening

auditors of the main Group companies to share informa-

the Company’s corporate governance.

tion, exchange opinions, and related activities to maintain close coordination within the Group and ensure theefficacy of audits.
If the Audit and Supervisory Committee requires
assistants to assist with its duties, the Company discusses
the committee’s needs with the Audit and Supervisory
Committee members and appoints organizations andassistants.
The personnel matters and transfers of the assistants
are conducted after consultation with the Audit andSupervisory Committee members.
To Contents

17

COMSYS Holdings Corporation Annual Report 2017

ProfileCorporate Social Responsibility (CSR)

Moreover, the Group will consider the environment as it

is to build reliable, safe, and convenient networked society

undertakes development of a wider infrastructure, and will

and support the networks that connect every corner of society

help to create an information-rich society that coexists

like clockwork. We consider this our responsibility to society

harmoniously with the global environment.
As a member of society, the COMSYS Group aims to

as a corporation.

become a corporate entity that is trusted and loved by many

the CSR concept that we are contributing to the creation of

stakeholders, including customers, local communities,

a society where telecommunications networks foster moreshareholders, and employees. We will also engage in CSR

meaningful relationships among people, and between people

activities to achieve sustainable growth.

and their communities. We see our basic CSR activities as asocial contribution made through business activities.

Business at a
GlanceCOMSYS Group Value Creation Process

Realizing the
medium- to long-term vision

Outstanding
management resources

Business
expansion

Society

Corporate governance

Promotestructuralreformsresources

Enhance quality
and consider the environment

Customers• We will contribute to our country and local communities bybuilding social infrastructure that supports affluent lifestyles.
• We will continue with unrelenting reform in our aim
to further increase corporate value.

2

3

4

1
Human
EnhancePursueresources
reliability quality andand safety consider theenvironment

For the COMSYS Group, CSR activities are an important

In addition, with our management philosophy theGroup aims to realize the business expansion, maximize
utilization of human resources, and the promote structural

engages in business activities with a strong awareness ofreforms, as called for by our medium- to long-term vision.

our priority challenges, which are to “pursue reliability andBy establishing the four guideposts, the COMSYS

safety,” “enhance quality and consider the environment,”

Group is moving through a short-term PDCA cycle for eachand “contribute to society through business.” We strive

goal, and boosting the realization of the medium- to

to strengthen governance, which is the management

long-term vision.

foundation that supports these activities.

To Contents

With human resources as the core, the COMSYS Group

Information

element in supporting value creation.

Groupinnovation

Financial
Statements• We will build a company that customers
continue to choose through the construction ofdiverse infrastructure that carries our era forward.

COMSYS WAY• Top-line growth• Promote structural reforms

Corporate Social
Responsibility(CSR)

Management Philosophy• Spirit for taking on challenges• Firm management
Group• Financial foundations
employees• Partnership with cooperating companies• Technology and expertise• Business scope being expanded
Four Guideposts
through alliances• M&A

Maximize
utilizationof human
resources

Corporate
GovernancePursueContributereliability
to society
and safety
throughHumanbusiness

Review ofOperations andOutlook

COMSYS Group
Business Activities

Shareholders

Five Integrated
Business Groups

The COMSYS Group promotes its CSR activities under

Progress on Medium- to
Long-Term Management
Strategy / Topics

In this information-rich society, the role of the COMSYS Group

President’s
Message

Basic Approach to CSR

18

COMSYS Holdings Corporation Annual Report 2017

Financial Statements

Consolidated Balance Sheets
COMSYS Holdings Corporation and Consolidated Subsidiaries
As of March 31, 2016 and 2017
2016

Millions of yen
2017

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

¥ 28,930¥ 20,961

ASSETS
Current assets:
Notes and accounts receivable—trade ����������������������������������������������������������������������������������������

102,559

114,322

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

2,662

2,572
19,617

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

15,261

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

112

77

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

390

518

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

3,152

3,587

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

2,533

5,543

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

(51)

(34)

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

155,551

167,166

Fixed assets:
Property and equipment:
Buildings and structures �������������������������������������������������������������������������������������������������������������

54,12056,994

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

(26,217)(28,052)
28,942

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

27,902

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

18,63630,355

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

(14,034)(16,934)

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

4,601

13,420Land ���������������������������������������������������������������������������������������������������������������������������������������������

39,26540,186

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

565

523

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

(224)

(270)

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

341

253

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

767

4,166

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

72,87886,968Intangible assets:
Goodwill ���������������������������������������������������������������������������������������������������������������������������������������

2,935

666

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

4,055

4,002

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

6,990

4,669

Investment securities �����������������������������������������������������������������������������������������������������������������

10,460

11,154Long-term loans receivable �������������������������������������������������������������������������������������������������������

8,033

1,067

Investments and other assets:

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

319

333

Net defined benefit asset �����������������������������������������������������������������������������������������������������������

9,094

10,082Other assets ���������������������������������������������������������������������������������������������������������������������������������

4,758

4,510

To Contents

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

(2,020)(1,585)

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

30,64525,563

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

110,514117,201

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

¥266,066¥284,367

19

COMSYS Holdings Corporation Annual Report 2017

ProfileMillions of yen
2017¥ 49,191¥ 55,577

President’s
Message

2016

LIABILITIESCurrent liabilities:
Short-term bank loans �������������������������������������������������������������������������������������������������������������������

114

113

Income taxes payable ���������������������������������������������������������������������������������������������������������������������

3,296

2,088
1,291

710
202

206

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

—297

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

7,711

11,712

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

61,22571,289

2,186

3,084

1,428

1,369

Net defined benefit liability �����������������������������������������������������������������������������������������������������������

3,726

4,355

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

219

257

735

1,068

8,296

10,134

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

69,52281,423

10,00010,000

Corporate
Governance

Other long-term liabilities �������������������������������������������������������������������������������������������������������������
Total long-term liabilities ���������������������������������������������������������������������������������������������������������������NET ASSETS
Shareholders’ equity:
Common stock �������������������������������������������������������������������������������������������������������������������������������

Review ofOperations andOutlook

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

Business at a
GlanceLong-term liabilities:

Five Integrated
Business Groups

Advances received on construction in progress �������������������������������������������������������������������������
Allowance for warranty work on construction projects ���������������������������������������������������������������

Progress on Medium- to
Long-Term Management
Strategy / Topics

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

51,26452,525

176,847

186,195

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

(36,008)(41,028)

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

202,104

207,692

Corporate Social
Responsibility(CSR)

Additional paid-in capital ���������������������������������������������������������������������������������������������������������������
Retained earnings ���������������������������������������������������������������������������������������������������������������������������

Financial
Statements

Accumulated other comprehensive income:
2,666(7,990)Remeasurements of defined benefit plans �����������������������������������������������������������������������������������

(1,219)(650)

Total accumulated other comprehensive income �����������������������������������������������������������������������

(6,724)(5,974)

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

542

578

Non-controlling interests �����������������������������������������������������������������������������������������������������������������

621

647

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

196,543

202,943

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

¥266,066¥284,367

To Contents

2,350(7,856)

Information

Unrealized gain on other securities �����������������������������������������������������������������������������������������������
Revaluation reserve for land ����������������������������������������������������������������������������������������������������������

20

COMSYS Holdings Corporation Annual Report 2017

Consolidated Statements of Income
COMSYS Holdings Corporation and Consolidated Subsidiaries
Years ended March 31, 2016 and 2017
2016

Millions of yen
2017

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

¥320,654¥334,163
288,440

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

277,264

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

43,38945,723

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

19,54020,686

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

23,84925,036

Other income:Interest income �����������������������������������������������������������������������������������������������������������������������������������

62

15

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

168

179

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

165

16

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

93

91

Foreign exchange gains ���������������������������������������������������������������������������������������������������������������������

—13

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

172

134

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

662

451

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

9

8

Other expenses:
Foreign exchange losses �������������������������������������������������������������������������������������������������������������������

145—

Commission for purchase of treasury stock �������������������������������������������������������������������������������������

23

21

Depreciation of idle assets ����������������������������������������������������������������������������������������������������������������

25

35

Rent expenses �������������������������������������������������������������������������������������������������������������������������������������

39

63

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

45

18

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

289

147

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

24,22325,341

Extraordinary income:Gain on sales of fixed assets �������������������������������������������������������������������������������������������������������������

72

24

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

237

161

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

—328

Gain on exchange from business combination �������������������������������������������������������������������������������

—84

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

386—

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

13

49

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

709

649

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

98

114

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

470

391

Amortization of goodwill �������������������������������������������������������������������������������������������������������������������

—

2,273

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

162

163

Extraordinary loss:

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

162

239

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

893

3,183

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

24,04022,807

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

7,417

8,958

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

1,170

(663)

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

8,588

8,295
14,512

Income taxes:

To Contents

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

15,451

Net income attributable to non-controlling interests �������������������������������������������������������������������

30

26

Net income attributable to owners of parent ���������������������������������������������������������������������������������

¥ 15,420¥ 14,485

21

COMSYS Holdings Corporation Annual Report 2017

ProfileConsolidated Statements of Changes in Net Assets

Additional
paid-in
capitalRetainedearnings

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

¥10,000¥56,615¥164,836¥(34,852)¥196,599

Changes during the period:
Cash dividends ���������������������������������������������������������������������

(3,402)(3,402)

Net income attributable to owners of parent ���������������������

15,42015,420

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

(8,002)

273

1,067

1,341

Retirement of treasury stock �����������������������������������������������

(5,778)

5,778

Purchase of treasury stock of subsidiaries �������������������������

154

—
154

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

(6)

(6)
—
—

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

——(5,350)12,011(1,155)

5,504¥10,000¥51,264¥176,847¥(36,008)¥202,104
Millions of yen

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

¥2,638¥(7,936)¥1,473¥(3,824)

Subscription
rights toshares

Noncontrollinginterests

Total net
assets¥500¥762¥194,038

Corporate
GovernanceYear ended March 31, 2016

Unrealized
gain (loss)
on othersecurities

Accumulated other comprehensive income
Total
accumulated
Revaluation
Remeasurements
otherreserveof definedcomprehensive
for landbenefit plansincome

Review ofOperations andOutlook

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

Business at a
GlanceIncrease by share exchanges �����������������������������������������������
Reversal of revaluation reserve for land �����������������������������

Five Integrated
Business Groups(8,002)

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

Progress on Medium- to
Long-Term Management
Strategy / Topics

Year ended March 31, 2016

CommonstockMillions of yen
Shareholders’ equity
TreasuryTotalstock,
shareholders’at costequityPresident’s
Message

COMSYS Holdings Corporation and Consolidated Subsidiaries
Years ended March 31, 2016 and 2017

Changes during the period:

15,420

Repurchase of treasury stock ������

(8,002)

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

1,341

Retirement of treasury stock ������

—Purchase of treasury stock ofsubsidiaries ��������������������������������

154
(6)

Increase by share exchanges ������

—

Reversal of revaluation reserve
for land ����������������������������������������

—

(288)

80

(2,692)(2,900)41(141)(2,999)Total changes during
the period ����������������������������������

(288)

80

(2,692)(2,900)

41

(141)

2,505

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

¥2,350¥(7,856)¥(1,219)¥(6,724)

¥542

¥621

¥196,543

To Contents

Net changes during
the period except for­shareholders’ equity ������������������

Information

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

Financial
Statements(3,402)

Corporate Social
Responsibility(CSR)

Cash dividends ����������������������������
Net income attributable toowners of parent ������������������������

22

COMSYS Holdings Corporation Annual Report 2017

Year ended March 31, 2017

Commonstock

Additional
paid-in
capitalRetainedearnings

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

¥10,000¥51,264¥176,847

Millions of yen
Shareholders’ equity
TreasuryTotalstock,
shareholders’at costequity¥(36,008)¥202,104

Changes during the period:
Cash dividends ���������������������������������������������������������������������

(4,435)(4,435)

Net income attributable to owners of parent ���������������������

14,485

14,485

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

99(8,000)(8,000)442

541

Retirement of treasury stock �����������������������������������������������

—Purchase of treasury stock of subsidiaries �������������������������

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

(837)

Increase by share exchanges �����������������������������������������������

1,161

(837)
2,538

Reversal of revaluation reserve for land �����������������������������

134

3,700
134

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

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

—

1,260

9,347

(5,019)5,588

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

¥10,000¥52,525¥186,195¥(41,028)¥207,692
Millions of yen

Year ended March 31, 2017

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

Unrealized
gain (loss)
on othersecurities¥2,350

Accumulated other comprehensive income
Total
accumulated
Revaluation
Remeasurements
otherreserveof definedcomprehensive
for landbenefit plansincome¥(7,856)¥(1,219)¥(6,724)

Subscription
rights toshares

Noncontrollinginterests

Total net
assets¥542¥621¥196,543

Changes during the period:
Cash dividends ����������������������������

(4,435)

Net income attributable toowners of parent ������������������������

14,485

Repurchase of treasury stock ������

(8,000)

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

541

Retirement of treasury stock ������

—Purchase of treasury stock ofsubsidiaries ��������������������������������

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

(837)

Increase by share exchanges ������

3,700

Reversal of revaluation reserve
for land ����������������������������������������

(134)

To Contents

Net changes during
the period except for­shareholders’ equity ������������������

315

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

315

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

¥2,666

(134)

—

568

884

35

26

946

(134)

568

749

35

26

6,400

¥(7,990)¥ (650)¥(5,974)

¥578

¥647

¥202,943

23

COMSYS Holdings Corporation Annual Report 2017

ProfileConsolidated Statements of Cash Flows

Information

To Contents

56(9)(8,022)329—(4,435)(2)(94)(12,178)(0)(9,573)28,818282
961,255¥ 20,879

Financial
Statements

(8)
(16)
(8,025)234(7)(3,402)(3)(78)(11,307)(0)(5,521)33,435883
21—¥ 28,818

Corporate Social
Responsibility
(CSR)

30
(151)
242
—
—
(241)
(8,864)(1,171)
101
(38)
151
(96)
258
(160)
(9,940)

Corporate
Governance

59
(206)
1,156
100
216
(70)
(4,639)(1,664)863(3,695)
511
(16)
235
(152)
(7,303)

Review ofOperations andOutlook¥ 22,807
5,723
391
—
3,017
(453)
24
(195)
7
(7,694)(4,257)
801
(161)
(282)
811
168
20,709194(7)(8,351)
12,545Business at a
Glance¥ 24,040
5,009
470
(386)
594
(236)
(264)
(230)
9
(8,377)
653
2,955
(177)
(998)
(2,506)146
20,701227(9)(7,829)13,089Five Integrated
Business Groups

Cash and cash equivalents received on interest and dividend 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 redemption of investment securities �����������������������������������������������������������������������
Proceeds from purchase of stocks of subsidiaries resulting in change in scope of consolidation �����
Purchase of investments in subsidiaries���������������������������������������������������������������������������������������������
Acquisitions of property and equipment ���������������������������������������������������������������������������������������������
Acquisitions of intangible fixed assets ���������������������������������������������������������������������������������������������
Proceeds from sale of property and equipment �����������������������������������������������������������������������������
Payments of loans receivable �����������������������������������������������������������������������������������������������������������
Collection of loans receivable �����������������������������������������������������������������������������������������������������������
Purchase of insurance funds �������������������������������������������������������������������������������������������������������������
Proceeds from cancellation of insurance funds �������������������������������������������������������������������������������
Other, net �������������������������������������������������������������������������������������������������������������������������������������������
Net cash used in investing activities �������������������������������������������������������������������������������������������������Cash flows from financing activities:
Decrease in short-term borrowings, net �������������������������������������������������������������������������������������������
Repayment of long-term debt �����������������������������������������������������������������������������������������������������������
Acquisitions of treasury stock �����������������������������������������������������������������������������������������������������������
Proceeds from sale of treasury stock �����������������������������������������������������������������������������������������������
Purchase of treasury stocks of subsidiaries ���������������������������������������������������������������������������������������Cash dividends paid ���������������������������������������������������������������������������������������������������������������������������Cash dividends paid to non-controlling interests ���������������������������������������������������������������������������
Repayment of financial lease obligations �����������������������������������������������������������������������������������������
Net cash used in financing activities �������������������������������������������������������������������������������������������������
Effect of exchange rate changes on cash and cash equivalents �������������������������������������������������
Net decrease in cash and cash equivalents �������������������������������������������������������������������������������������Cash and cash equivalents at beginning of year �����������������������������������������������������������������������������
Increase in cash and cash equivalents resulting from change of scope of consolidation �������
Increase in cash and cash equivalents resulting from merger �����������������������������������������������������������������
Increase in cash and cash equivalents resulting from share exchange ���������������������������������������Cash and cash equivalents at end of year ���������������������������������������������������������������������������������������

Millions of yen
2017

Progress on Medium- to
Long-Term Management
Strategy / Topics

Cash flows from operating activities:
Income before income taxes and other adjustments to net income ���������������������������������������������
Depreciation and amortization ���������������������������������������������������������������������������������������������������������
Loss on impairment of fixed assets ���������������������������������������������������������������������������������������������������
Gain on negative goodwill �����������������������������������������������������������������������������������������������������������������
Amortization of goodwill �������������������������������������������������������������������������������������������������������������������
Decrease in allowance for doubtful receivables �����������������������������������������������������������������������������
(Decrease) increase in net defined benefit liability �������������������������������������������������������������������������
Interest and dividends received �������������������������������������������������������������������������������������������������������
Interest expenses �������������������������������������������������������������������������������������������������������������������������������
Increase in receivables—trade ����������������������������������������������������������������������������������������������������������
Decrease (increase) in inventories �����������������������������������������������������������������������������������������������������
Increase in payables—trade �������������������������������������������������������������������������������������������������������������
Gain on sale of investment securities �����������������������������������������������������������������������������������������������
Increase in other assets ���������������������������������������������������������������������������������������������������������������������
(Decrease) increase in other liabilities �����������������������������������������������������������������������������������������������
Other, net �������������������������������������������������������������������������������������������������������������������������������������������

2016

President’s
Message

COMSYS Holdings Corporation and Consolidated Subsidiaries
Years ended March 31, 2016 and 2017

24

COMSYS Holdings Corporation Annual Report 2017

Ten-Year Summary of Business Results and Financial Data
Years ended March 31* The figure for the consolidated earnings forecast for the fiscal year ending March 31, 2018 reflects the figure in the revised plan announced on August 4, 2017.

Net Sales(Millions of yen)

400,000

380,000
327,526

321,185

300,000

293,086

315,480

295,851

316,092

331,341

328,631

320,654

14

15

16

27,57027,674

334,163

200,000
100,000
0

08

09

10

11

12

13

17

18

(Forecast)

Operating Income(Millions of yen)

30,00025,00020,00022,547
16,29815,00028,50023,84925,036

15,61012,54011,785

12,5921011

12

10,000
5,000
0

08

09

13

14

15

28,07828,12116

17

18(Forecast)

Recurring Profit(Millions of yen)

30,00025,00020,00022,914
18,228

29,10024,22325,341

17,14415,00013,113

12,14012,96910

11

12

10,000
5,000
0

08

09

13

14

15

16

17

18

(Forecast)

Net Income attributable to owners of parent/Primary Earnings per Share (EPS)(Millions of yen)

20,000183.2720,00016,38915,00011,641

10,00083.87

10,06275.60

To Contents

5,000
0

136.0813,28408

09

10■ Net Income attributable to owners of parent (Left Scale)

142.72

15,420136.75

14,485129.96

73.92

100

7,173
55.50

11

200
150

106.82

9,543
7,097
55.18

16,767

(Yen)

12

50

13

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

14

15

16

17

18
(Forecast)

0

25

COMSYS Holdings Corporation Annual Report 2017

ProfilePresident’s
Message

Total Assets
300,000
250,000

224,121220,651

211,809

08

09

10

237,436

228,13511

12

240,602250,56113

14

264,019

266,06615

16

Progress on Medium- to
Long-Term Management
Strategy / Topics(Millions of yen)
284,367

200,000
150,000

Five Integrated
Business Groups

100,000
50,000017(%)(Millions of yen)

85

250,000
200,000
150,000

161,768

164,574

173,411

71.7%

71.6%

71.2%

179,41471.1%

194,038

196,543

73.0%

73.4%

75
70.9%

67.7%

65
55

50,000008■ Net Assets (Left Scale)

09
■

10

11

12

13

14

15

16

17

45

Review ofOperations andOutlook

68.4%

66.5%

100,000

151,768

151,775

150,417

202,943

Business at a
GlanceNet Assets/Shareholders’ Equity Ratio

Shareholders’ Equity Ratio (Right Scale)Corporate
Governance

Return on Equity (ROE)
(%)

10

9.4%

Corporate Social
Responsibility
(CSR)

7.9%

8

9.0%
7.9%

7.9%

7.3%
6.7%
6.1%

6
4.7%

08

09

4.4%

10

11

12

13

14

15

16

Financial
Statements

4

17

Dividends per Share/Acquisitions of Treasury Stock/Consolidated Payout Ratio(Yen)(Thousands of shares)
50.00

12,000

40.00

40

35.00

9,000

30.00

20

17.00 4,386

008

20.00 5,250
36.2%■ Interim Dividend (Left Scale)

36.0%

25.00
3,526

20.00

5,839

10

11

■ Year-End Dividend (Left Scale)

12

18.7%

18.4%

21.0%

13

14

15

■ Acquisitions of Treasury Stock (Right Scale)* Includes a special ¥3 dividend paid to reflect the benefits of the merger.

■

4,734

4,700

4,168

27.1%

26.5%

09

20.00 3,612

20.00

25.6%

16

Consolidated Payout Ratio

6,000

4,144
30.8%

17

3,000

18
(Forecast)0

To Contents

20.3%

20.00*

5,544

Information

15,00060

26

COMSYS Holdings Corporation Annual Report 2017

Information

COMSYS Holdings Information
Corporate Data

Corporate History

As of March 31, 2017

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
Number of Employees:

10,224 (Consolidated)

Directors and Audit and Supervisory Committee Members
As of June 29, 2017

President and Representative Director
Takashi Kagaya(President and Representative Director of Nippon COMSYS Corporation)

Directors
Noriaki Ito(Chairman and Representative Director of Nippon COMSYS Corporation)

Akio Ogawa

April 2007
COMSYS Holdings Corporation converted COMSYS Shared
Services Corporation, previously a consolidated subsidiary of
Nippon COMSYS Corporation, into a wholly owned subsidiary inorder to clarify its role as a common provider of business process
outsourcing services for the COMSYS Group.

October 2005
COMSYS 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.

(President and Representative Director of TOSYS Corporation)

April 2005

Yoshihisa Omura

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

(President and Representative Director of TSUKEN Corporation)

Shigemi Sakamoto(President and Representative Director of
SANWA COMSYS Engineering Corporation)

Akihiko Aoyama(President and Representative Director of
COMSYS JOHO SYSTEM Corporation)

Hitoshi Kumagai
Kenichi Sato
Hidehiko Ozaki

September 2003
COMSYS Holdings Corporation listed its shares on the firstsections of the Tokyo Stock Exchange and Osaka Securities
Exchange.

September 2003
Nippon COMSYS Corporation delisted its shares in line with theestablishment of the holding company.

Norio Suda
Directors (Audit and Supervisory Committee Members)
Tsuyoshi Nishiyama

March 2002
Nippon COMSYS Corporation was selected as one of the 225
components of the Nikkei Stock Average.

Koichiro Kamiwaki
Outside Directors(Audit and Supervisory Committee Members)
Kenichi Narumiya
Masahiko Miyashita
To Contents

Takaharu Saegusa
Kazuyoshi Onohara(): Concurrent positions held

December 2001
Nippon COMSYS Corporation celebrated its 50th founding
anniversary.

July 1990
The Company was renamed Nippon COMSYS Corporation.

27

COMSYS Holdings Corporation Annual Report 2017

ProfileOrganization Chart
President’s
Message

As of July 1, 2017

Board of Directors
President

Audit and Supervisory Committee

CSR Committee
Compliance Committee

Progress on Medium- to
Long-Term Management
Strategy / Topics

Senior Management Committee

Risk Management Committee

Business
Expansion
Strategy OfficeFinance& Accounting
Department

IR
Department• Corporate Planning Unit
• Corporate Strategy Unit
• Strategy Planning Unit
• Corporate Information Unit

GeneralAffairs
Department

Personnel
Department• Internal Control Office• Internal Audit Office

Review ofOperations andOutlook• General Affairs Unit
• Legal Unit
• PR Unit• CSR OfficeInternal Control
and Audit
Department

Wakkanai
Asahikawa

Muroran
Hakodate

ObihiroTomakomai

NIIGATA

Niigata

Tochigi
TOKYO

Saku/Chushin/Nanshin

Chiba
Kanto Minami
Kanagawa

Chugoku
KyushuShizuoka

Nishi Nippon
ShikokuTokaiHead Office/COMSYS Holdings Corporation
Head Office/Nippon COMSYS Corporation
Head Office/SANWA COMSYS Engineering Corporation

Information

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

To Contents

Head Office/COMSYS JOHO SYSTEM Corporation

Okinawa

Financial
Statements

NAGANO

Corporate Social
Responsibility(CSR)

TohokuSendai

Kanto Naka

Hokuriku

Corporate
Governance

Kitami
Kushiro

HOKKAIDO

Otaru

Business at a
GlanceCorporate
Planning
Department

Five Integrated
Business Groups

Personal Information Protection
and Administration Committee

28

COMSYS Holdings Corporation Annual Report 2017

Investor Information■ Fiscal Year-End:
March 31, 2017
■ Annual Shareholders’ Meeting:June 29, 2017
■ Common Stock:
Authorized: 580,000,000 shares
Issued: 141,000,000 shares■ Number of Shareholders:
7,899■ Date of Listing:
September 2003
■ Stock Exchange Listing:First Section of the Tokyo Stock Exchange(Securities code: 1721)■ Major Shareholders:
As of March 31, 2017
Shares held Percentage(Thousands) of total (%)

Shareholders

The Master Trust Bank of Japan, Ltd. (Trust Account)

19,364

13.73

Japan Trustee Services Bank, Ltd. (Trust Account)

12,808

9.08

Japan Trustee Services Bank, Ltd.
(Sumitomo Mitsui Trust Bank, Limited Retrust
Account, Sumitomo Electric Industries, Ltd.
Employee Pension Trust Account)

5,166

3.66

Trust & Custody Services Bank, Ltd.
(Investment Trust Account)

3,262

2.31

Nippon Life Insurance Company

2,590

1.83

Goldman Sachs Japan Co., Ltd.

2,000

1.41

BNP Paribas Securities (Japan) Limited

1,668

1.18

Japan Trustee Services Bank, Ltd.
(Trust Account No.5)

1,609

1.14

Meiji Yasuda Life Insurance Company

1,554

1.10

NEC Corporation

1,408

0.99

■ Transfer Agent:
Mitsubishi UFJ Trust and Banking Corporation
Securities Department
1-1, Nikko-cho, Fuchu-shi, Tokyo 183-0044, Japan■ Auditor:
GYOSEI & CO.

■ Composition of Shareholders:
As of March 31, 2017

■ For Further Information on this Annual Report,■ Securities Companies

4.0%

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

42.7%■ Domestic Companies

5.0%■ Foreign Companies
and Individuals

16.7%■ Stock Price Range / Monthly Trading Volume

To Contents(Yen)(Thousands of shares)

2,400

60,0002,000

50,0001,600

40,0001,200

30,000800

20,000400

10,0000015/4 15/5 15/6 15/7 15/8 15/9 15/10 15/11 15/12 16/1 16/2 16/3 16/4 16/5 16/6 16/7 16/8 16/9 16/10 16/11 16/12 17/1 17/2 17/3 (Month)■ ■ Stock Price (Left Scale)   ■ Monthly Trading Volume (Right Scale)■ Individuals

9.0%■ Treasury Stock22.6%