COMSYS Holdings Corporation

Annual Report 2011
Fiscal Year Ended March 31, 2011

Changes to Match
Today’s Business Environment

Connecting People with PeopleWe help to connect people with people through the construction of communications infrastructureand facilities. The construction services we provide range from large-scale backbone networks totelephone line installation for households and mobile phone base station construction.
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To address issues such as global warming and environmental preservation, we provide new energy
and energy generation and conservation systems, including photovoltaic power generation andbiological water treatment solutions. We also give back to society through environmental
businesses, including resource recycling operations.
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Connecting People with BusinessWe provide low-cost, convenient network systems along with reliable user-friendly solutions to
support the development of numerous companies and the realization of an enriched society.
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COMSYS Holdings Corporation (the “Company”) was established as the holding company of the COMSYS Group on 29th
September, 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 theinformation processing related business.

Our Mission
The COMSYS Group devotes every effort to bringing about a “smart ubiquitous network society” toserve as the infrastructure of a “Sustainable Society.” To this end we intend to leverage our positionas Japan’s No. 1 communications infrastructure construction company in maximizing synergies fromacross the whole Group to provide high quality technologies and services.

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

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TSUKEN
Corporation

COMSYSJOHO SYSTEM
Corporation

COMSYS
Shared Services
Corporation

Electrical Communications Engineering Business18

IT Solutions Business20

Social System-Related Business and Other

Information on Major Subsidiaries

24

Corporate Governance27

Corporate Social Responsibility (CSR)

28

Topics30

Financial Statements*

Left-click tabs at the righthand edge of the page tojump to the relevant section.

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Consolidated Balance Sheets

32

Consolidated Statements of Income

33

Consolidated Statements of Changes in Net Assets

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Consolidated Statements of Cash Flows36

Summary of Business Results and Financial Data

Information
38

COMSYS Holdings Information40

Our Group Formation

42

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 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.
COMSYS Holdings Corporation Annual Report 2011

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Information

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Financial Statements

NTT Information Telecommunication Engineering Business22

How to use

Left-click the tab at thebottom of each page toreturn to Contents.

14

Topics

Review of Operations

Corporate Social
Responsibility (CSR)

14

Corporate GovernanceBusiness at a Glance

14

Information on
Major Subsidiaries

12

12

Review of Operations

President’s Message

Business at a Glance

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President’s Message

Contents

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38

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President’s Message

As we work to continue anddeepen our structural reforms,
we focus on maintaining andupgrading our construction
technological capabilities, andstrengthening market competitiveness and operationalfoundation. Our efforts also
include the aggressive rolloutof new growth strategies
through entry into new business fields.

Hajime Takashima
President and Representative Director

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COMSYS Holdings Corporation Annual Report 2011

In the mobile communications field, the market was revitalized by new services basedon a diverse range of equipment centered on smartphones and tablet devices, and thestart of commercial LTE (Long Term Evolution) services, a next-generation wireless access
communications standard for mobile networks, in December of 2010.

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Informationties to resolve the digital divide through construction towards the end of the fiscal year.

Financial Statements

various works to address the conversion to digital broadcasting conducted by municipali-

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Topicsoptical fiber construction works under IRU (Indefeasible Rights of Use) arrangements andCorporate Social
Responsibility (CSR)

communications market saw an expansion of NGN services, and major advances in both

Corporate GovernanceIn fiscal 2011, ended 31st March, 2011, the fixed-line sector of Japan’s information andInformation on
Major Subsidiaries

East Japan Earthquake, and prays for the speedy recovery of the affected regions.

12

Review of OperationsFirst, the COMSYS Group offers its heartfelt sympathies to all those affected by the Great

08

Business at a Glance

Performance in Fiscal 2011

President’s Message

President’s Message

38

Nevertheless, looking back at the recent business environment, the telecommunications
carriers which are COMSYS Group’s key clients faced fierce competition for customers. In
addition, their investment structure has shifted significantly from infrastructure to investment
in content and other high value-added services, and as construction projects are downsized,
shrinking capital investments create an even more difficult environment.
In this environment, and with this the final year of the structural reforms initiated under“Group Innovation 2010,” the COMSYS Group has continued to aggressively develop
businesses with three major objectives: increasing sales and earnings, enhancing businessefficiency, and promoting unified operations. In October of 2010, the Group implemented
a management integration with Tsuken Corporation, a company based primarily in­Hokkaido which does business with the NTT Group, and through that integration theGroup has pursued wide-ranging business growth and the maximization of synergies
through the realignment of management resources. Further, in addition to the structuralreform measures pursued to date, the Group has worked to strengthen its operationalfoundation through a thorough streamlining of company-owned assets, and by rationalization of personnel allocation and labor cost structures.

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COMSYS Holdings Corporation Annual Report 201109

President’s Message

Under these circumstances, and with positive progress in the management integration
with Tsuken, as well as IRU related construction promoted by municipalities, orders
received increased 3.4% year on year to ¥294,360 million, while net sales increased 7.6%
year on year to ¥315,480 million. On the earnings front, we continued to work to improve
productivity through structural reform of operations while cutting expenses during theyear. However, these efforts could not compensate for the impact of reassessment ofprice per unit order, the downsizing of construction projects, and incurrence of temporary
work and expenses stemming from earthquake recovery efforts, resulting in ordinary
income falling 7.4% year on year, to ¥12,140 million. Despite posting extraordinary losses
as part of our strategy to fortify our business foundation, including a write-down on
software, impairment losses on land and buildings, and special severance payments, again on negative goodwill associated with the management integration with Tsuken wasrecorded as extraordinary income. As a result, net income rose 34.5% year on year to¥9,540 million.

Outlook for Fiscal 2012
Going forward, with the increasing shift to IP and broadband technology, the information
communications field will see an acceleration in the convergence between fixed-line andmobile, and telecommunications and broadcasting services. At the same time, the promotion of full utilization of ICT is expected to contribute significantly to sustainable economic
growth and to solutions for issues such as Japan’s shrinking, aging population and a
low-carbon society.
Nevertheless, the business environment for the COMSYS Group is expected to be
more challenging in fiscal 2012, with telecommunications carriers reducing capital investment as IRU related construction and works for the conversion to digital broadcasting
are completing their cycles. In this difficult environment, the COMSYS Group will work
to meet the expectations of its shareholders, while continuing and deepening the structuralreforms already implemented, maintaining and upgrading our construction technologicalcapabilities, and strengthening market competitiveness and operational foundation. At
the same time, the Group will shift to the aggressive rollout of new growth strategies
through entry into new business fields.

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COMSYS Holdings Corporation Annual Report 2011

President’s Message

08

Business at a Glance

12

Review of Operations

14

Information on
Major Subsidiaries

22

Corporate Governance24

Corporate Social
Responsibility (CSR)

27

Topics28

Financial Statements

30

Information

President’s Message

38

From mid-March 2011, the COMSYS Group has worked to restore infrastructure andestablish new temporary lines in the wake of the Great East Japan Earthquake. Goingforward, the Group as a whole will push ahead with preparations for further reconstructionof telecommunications infrastructure.

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 2011 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. For fiscal 2012, we plan to pay the same total annual dividend of¥20.00 yen per share (a ¥10.00 interim dividend and a ¥10.00 year-end dividend), reflecting
our performance forecast.
During fiscal 2011, we bought back 3,612 thousand shares worth ¥2,999 million, withthe aim of stepping up the return of earnings to shareholders and enabling flexible
financial policies in response to changes in the business environment. In fiscal 2012, wewill look at further share buybacks after comprehensive consideration of various factors,
including the Group’s performance, economic trends, and stock price movements.
Going forward, the COMSYS Group will target steady growth through business reforms,
while deploying its technological expertise amassed as a leading company in the communication construction field. Our aim is to help achieve a safe, reliable, convenient
networked society, thus contributing more to that society. We look forward to your ongoingunderstanding and support.

September 2011

Hajime Takashima,
President and Representative Director

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COMSYS Holdings Corporation Annual Report 201111

Business at a Glance

NTT Information Telecommunication
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

SANCOMGroup

TOSYS GroupTSUKEN
Corporation

n

n

n

COMSYSJOHOSYSTEM
Group

NipponCOMSYSGroup

SANCOMGroup

TOSYS GroupTSUKEN
Corporation

n

n

n

n

New Orders Received/Net Sales

New Orders Received/Net Sales(Year Ended 31st March, 2011)(Year Ended 31st March, 2011)(Millions of yen)

COMSYSJOHOSYSTEM
Group(Millions of yen)n New orders received

53.9%

158,539n New orders received

22.1%

65,093n Net sales

52.0%

164,073n Net sales

22.6%

71,284

Business Domains

Business DomainsnCable worksnTelecommunications facilities for NCC

nCommunication related civil engineering worksn

Mobile communications constructions for NCC

n

Switching worksnGeneral electrical facilities worksnTransmission wireless worksnConstruction of multi-use underground cable conduitn

Mobile communications works

facilities (C·C·BOX)
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COMSYS Holdings Corporation Annual Report 2011

of office buildings, warehouses, and factories, as well as

integration services plans optimized for customers’ busi-

businesses related to the environment such as solar power

nesses to providing maintenance services.

generation systems, energy conservation solutions, water
resources and other urban infrastructure businesses.

Respective Areas of Business Operations of Group Companies
NipponCOMSYSGroup

SANCOMGroup

TOSYS Group

n

n

n

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Information

works, disaster prevention facilities works, the construction

solutions service, ranging from developing optimal systems

Financial Statements

edge network technologies to provide a comprehensive

TopicsThis segment is engaged in general civil engineering

Corporate Social
Responsibility (CSR)

This segment combines extensive expertise with cutting-22

Corporate Governance

Main Business14

Information on
Major Subsidiaries

Main Business

12

Review of Operations

Social System-Related Businessand Other

08

Business at a Glance

IT Solutions BusinessPresident’s Message

Business at a Glance

38

Respective Areas of Business Operations of Group Companies

TSUKEN
Corporation

COMSYSJOHOSYSTEM
Group

NipponCOMSYSGroup

SANCOMGroup

TOSYS GroupTSUKEN
Corporation

n

n

n

n

n

n

New Orders Received/Net Sales

New Orders Received/Net Sales(Year Ended 31st March, 2011)(Year Ended 31st March, 2011)(Millions of yen)

COMSYSJOHOSYSTEM
Group(Millions of yen)n New orders received

19.5%

57,560n New orders received

4.5%

13,171n Net sales

20.7%

65,279n Net sales

4.7%

14,842Business Domains

Business Domainsn

Network integration-related solutionsn

General civil engineering worksnSystem integration-related solutionsn

Building construction and ancillary facilities worksnDevelopment and commissioning of all types of softwarenEnvironmental solutionsn

Maintenance and operationnOverseas businessn

Leasing and temporary staffing services
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COMSYS Holdings Corporation Annual Report 201113

Review of Operations

NTT Information Telecommunication
Engineering Business

Pursuing wide-range business expansion and the maximization of synergies
through the realignment of management resources.

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Market Conditions

Fiscal 2011 Business Initiatives and Outlook

The fixed-line communications field saw an expansion of

In fiscal 2011, we worked to enhance productivity throughnext-generation network (NGN) services, and significant

fundamental structural reforms of our operating structure, while

progress to resolve the so-called digital divide through thestrengthening our regional construction organization throughconstruction of optical fiber networks under IRU arrange-a management integration with Tsuken Corporation, a com-ments and works to address the conversion to terrestrialpany which has its business base primarily in Hokkaido.

digital broadcasting promoted by municipalities. In the

Nevertheless, new orders received in fiscal 2011 declined

mobile communications field, the market was revitalized

1.9% year on year to ¥158,539 million, and net sales were

through new services based on a diverse range of equipment

down 1.0% to ¥164,073 million. These results stemmed from

centered on smart phones and tablet devices, and the starta decrease in total service order implementation projects byof LTE services. Nevertheless, looking back at recent businessarea based on per unit price contracts in construction services

conditions, as telecommunications carriers faced fierce com-related to NTT, a drop in orders from NTT DOCOMO due

petition for customers, their investment structure has shiftedto a decline in capital investment, along with the impact ofsignificantly from infrastructure to investment in content andcarrying over projects to the next fiscal year as we gave prior-other high value-added services. At the same time, as con-ity to earthquake recovery construction.

struction projects are downsized, capital investment is being

In fiscal 2012, because capital investments of NTT in

reduced, creating an even more challenging environment.

infrastructure are expected to continue declining in thisTo Contents

COMSYS Holdings Corporation Annual Report 2011

24

Corporate Social
Responsibility (CSR)

27

Topics28

Financial Statements

30

Information

operating structure for the Group. We will also work to ensure22

Corporate Governanceporate resources, as we work to establish a more efficient

14

Information on
Major Subsidiaries

maximization of synergies through the coordination of cor-

New Orders Received/Net Sales

12

Review of Operations

segment, we will pursue broad business growth and the08

Business at a Glance

NTT Information Telecommunication Engineering BusinessPresident’s Message

Review of Operations

38(Millions of yen)

250,000
200,000

profitability in our existing infrastructure business, while
shifting resources toward making maintenance and operations a key pillar of our business going forward.
In the NTT DOCOMO business, in order to improve andincrease the competitiveness of our operational structure,
we will focus on enhancing our negotiation consulting team,streamlining operations, and leveling out the workload in

150,000
100,000
50,000
0

07

08

09

10

11

n Net Orders Received n Net Sales

our operations and reducing outsourcing costs with theintroduction of IT tools. In addition, by expanding the coverage of our base station area maintenance work and throughaggressive expansion of our IP related business, we will work
to extend the range of our business.

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COMSYS Holdings Corporation Annual Report 201115

Review of Operations

Electrical Communications
Engineering BusinessWorking to further expand market share by strengthening construction management
framework and raising customer satisfaction.

16

Market Conditions

Fiscal 2011 Business Initiatives and Outlook

Telecommunications carriers, other than the NTT GroupTo respond to a curtailing of investment by telecommunica-

companies, have largely come to the end of their capitaltions carriers, other than the NTT Group companies, and theinvestments for current-generation (third-generation) net-

resulting drop in orders, we worked to enhance productivity

works, and we are now seeing increased movement towards

by establishing operational processes capable of responding

next-generation (fourth-generation) networks, including

more quickly to the market. We also targeted an expansion

investments in pre-4G Long Term Evolution (LTE) (3.9G)

in new orders and revenue by working more closely with ourtechnology. The market is becoming increasingly competitive

customers, and focusing on widening the range of our busi-

as companies vie to capture customers through lower rates

ness activities even further. Despite these efforts, new orders

for services, the development of a diverse range of mobile

received fell 7.6% year on year, to ¥65,093 million, and net

phones centered on smart phones, tablet devices and elec-

sales slipped 5.6% to ¥71,284 million. This was due to thetronic book (E-book) readers—and through content services

impact of a curtailing of investment by the carriers, a drop

including music, video, and E-books. However, capital invest-

in orders resulting from more manufacturers and vendors

ment by the carriers continues to be restrained by a downsiz-

sourcing work in-house and increasingly competitive bidding

ing of construction projects, and a resulting drop in pricefor public sector and electrical works tenders, and the impact

per unit order.

of the Great East Japan Earthquake, which resulted in

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COMSYS Holdings Corporation Annual Report 2011

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Topics28

Financial Statements

30

Information

existing systems to the next-generation mobile communica-24

Corporate Social
Responsibility (CSR)

The next fiscal year will mark a transitional period from

22

Corporate Governanceas part of the recovery effort.

New Orders Received/Net Sales

14

Information on
Major Subsidiaries

postponed projects and the need for temporary operations

12

Review of Operations

Electrical facilities works inside Haneda Airport

08

Business at a GlanceElectrical Communications Engineering BusinessPresident’s Message

Review of Operations

38(Millions of yen)

100,000
80,000

tions standard (LTE), and market conditions are expected toremain challenging. However, we will work to enhance our

60,000operational structure in preparation for the full introduction

40,000of LTE and dismantling of obsolete systems in 2012 and20,000beyond by consolidating our design and cost estimation
operations and building a more efficient structure for project
implementation. We will also respond to capture demand

0

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08

09

10

11

n Net Orders Received n Net Sales

for data center related construction works apparently growing fast in the wake of the Great East Japan Earthquake, andnetwork expansion projects resulting from a rapid increasein mobile data traffic.

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COMSYS Holdings Corporation Annual Report 201117

Review of Operations

IT Solutions Business

Booth at the Information Security EXPO

Enhancing market competitiveness to expand business.
Market Conditions

Fiscal 2011 Business Initiatives and Outlook

The IT solutions business market continues to be challenging,

In the year under review, we worked aggressively on opticalas interest in IT investment among private sector companies

fiber construction works under IRU arrangements and ter-remains weak, and price competition grows increasingly stiff.

restrial digital broadcasting construction projects as munici-

However, with the government’s proposal of achieving sus-

palities worked to resolve the digital divide. In the server

tainable growth through the utilization of information com-business, we targeted expansion of upper-layer businesses

munication technology (ICT), ICT is expected to contribute

through proactive efforts to build alliances with manufactur-

significantly to regional revitalization, environmental preser-

ers and others in the cloud computing and data center fields.

vation, and other social issues. As a result, demand is growing

In IT management services, we established a new integrated

for development in infrastructure needed to resolve thecustomer center and took other steps with the goal of

digital divide domestically, including the establishment ofexpanding our customer base.

IT platforms and data centers.

Special demand for IRU related and terrestrial digital
broadcasting projects contributed significantly to results forthe year, with new orders received increasing by 41.8% year
on year to ¥57,560 million, and net sales jumping 64.91% toreach ¥65,279 million.

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COMSYS Holdings Corporation Annual Report 2011

Topics

28

Financial Statements

30

Information

operations and maintenance in anticipation of the coming

27

38(Millions of yen)

80,000maintenance business segment. We will also focus on expanding our business in servers, IT management services, and24

Corporate Social
Responsibility (CSR)

capabilities in the system integration (SI) and operations and22

Corporate Governanceness to expand our business coverage by strengthening our

New Orders Received/Net Sales

14

Information on
Major Subsidiaries

In fiscal 2012, we will need to enhance market competitive-

12

Review of Operations

Integrated customer center

08

Business at a Glance

IT Solutions BusinessPresident’s Message

Review of Operations

60,00040,000cloud computing era. Further, we will also work to extend ourbusiness into the fields of maintenance work under IRU
arrangements and disaster prevention-related services.

20,000

0

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08

09

10

11

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COMSYS Holdings Corporation Annual Report 201119

Review of Operations

Social System-Related Businesses
and Others

Solar power generation facilities

Targeting further expansion of our fields of business, and development of
new growth strategies.
Market Conditions

Fiscal 2011 Business Initiatives and Outlook

Despite bidding in the construction market continuing to be

In fiscal 2011, as in the previous year, we continued to aggres-extremely competitive, we are seeing that companies andsively pursue solar power generation and other environmental

other organizations are increasingly required to respond tosolutions and energy conservation-related businesses. We

environmental preservation and social contribution issues as

have made particular progress in training qualified personnel

environmental problems such as global warming grow morein solar power generation systems, and have seen an increase

serious. As a result, business opportunities focused onin orders for mega-solar power systems. Our initiatives also

addressing ecological and environmental issues are on the

included water resources and other urban infrastructure

increase, while the Great East Japan Earthquake has triggered

business, as part of solid progress we have made in expanding

an explosion in demand in the energy and energy conserva-

our environment-related businesses. These efforts resulted

tion sectors, projects related to recovery efforts in affected

in 8.6% year-on-year growth in new orders, to ¥13,171 million,

areas, enhanced disaster protection measures for criticalwhile net sales grew 22.1% to ¥14,842 million.

infrastructure against damage by natural disasters, and forseismic retrofitting.

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COMSYS Holdings Corporation Annual Report 2011

27

Topics28

Financial Statements

30

Information

tions, energy conservation, and energy sectors. Within the24

Corporate Social
Responsibility (CSR)

projects for social infrastructure, and the environment solu-

22

Corporate Governanceof business, including seismic retrofitting and isolation

New Orders Received/Net Sales

14

Information on
Major Subsidiaries

Our initiatives in fiscal 2012 will target a broad expansion

12

Review of Operations

Laying pipe for black water (sewage) systems

08

Business at a GlanceSocial System-Related Businesses and Others

President’s Message

Review of Operations

38(Millions of yen)

25,00020,000­environment-related business, we will aim to further increase
the range of our operations, including efforts in new sectors

15,000such as the recycling of gray water (biological water treat-

10,000ment), seismic retrofitting of white (tap) and black (sewage)

5,000

water systems, and smart grid-related business, as we work
to build new growth strategies.

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COMSYS Holdings Corporation Annual Report 201121

Information on Major Subsidiaries
Five Core Operating Subsidiaries: Status of New Orders Received and Earnings

Nippon COMSYS GroupSANWA COMSYS Engineering GroupThe period under review was the final year of the Nippon

In the year under review, the SANWA COMSYS Engineering

COMSYS Group’s “Innovation 2010” structural reform cam-

(SANCOM) Group stood united in an effort to improve its

paign, which calls for the Group to harness its comprehensive

corporate foundation and thus enhance competitiveness,

strengths with top priority on the safety, quality, and trustwor-reflecting its basic policy of rigorously cutting costs andthiness of its operations. During the year, we actively imple-

ensuring safety and quality of its operations. Specific initia-

mented various strategies, including “strengthening project

tives included prioritizing businesses, creating an organiza-

management to clarify the division of roles between prime

tional and personnel system capable of swiftly addressing

contractor and subcontractors,” “rebuilding regional businesschanging business conditions, and boosting the grossoperating systems,” and “reinforcing IRU related and ter-margin through across-the-board cost reassessments. We

restrial digital broadcasting businesses.” Based on our strategy

also strove to ensure service quality through remaining true

to fortify our operational foundation, meanwhile, we rigorously

to our basic principles and ensuring safety through rigorous

streamlined assets, which included revaluing software assets

safety checks.

to appropriate values and selling land and buildings. At the

For the year, new orders received declined 8.7% year onsame time, we sought to optimize our personnel allocation

year to ¥57,450 million, and net sales were down 6.6% year

and cost structure through a reassessment of our personnel

on year to ¥59,920 million. This was due to restrained capitalsystem. This included dramatically expanding and upgrading

spending among telecommunications carriers, downsizing

our early retirement support system.

of construction projects and resulting decreases in unit order

Under these circumstances, new orders received during

amounts, a shift to in-house production among manufactur-

the year totaled ¥202,940 million, unchanged from the previ-ers and vendors, and intensified competition for public-sector

ous fiscal year. Net sales declined 1.9% year on year totenders and tenders for electrical construction work. As for¥205,830 million. Although the IRU related business per-earnings, ordinary income declined 33.6% year on year toformed well, our results were affected by a number of factors.

¥1,330 million, as business structural reforms and exhaustive

These included a decline in total service order implementa-

cost-reduction efforts failed to compensate for the decreasetion projects by area based on per unit price contracts inin sales. Other factors included the incurrence of temporary

construction services related to NTT and a decrease in capitalwork and expenses stemming from earthquake recovery

investments in construction services related to NTT

efforts. We also posted extraordinary losses as part of our

DOCOMO, as well as postponement of projects as compa-

strategy to fortify our business foundation. These included

nies focused on restoration efforts related to the Great East

impairment losses on land and buildings and special sever-Japan Earthquake. With respect to earnings, despite working

ance payments. As a result, net income fell 68.9% year on

hard to raise productivity and cut operating expenses

year to ¥320 million.

through structural reforms, ordinary income declined 18.6%
year on year to ¥8,410 million. This was due mainly to areassessment of unit order amounts, downsizing of construction projects, and incurrence of temporary work and expenses
stemming from earthquake recovery efforts. We also posted
extraordinary losses as part of our strategy to fortify ourbusiness foundation. These included a write-down on software, impairment losses on land and buildings, and a special
retirement expense. As a result, the Group posted a net lossof ¥190 million, compared with net income of ¥5,910 million
in the previous fiscal year.

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COMSYS Holdings Corporation Annual Report 2011

Between its integration into the COMSYS Group inwhich became profitable in the previous fiscal year. In the

October 2010 and the end of the fiscal year in review,Group’s core NTT business, we undertook a consolidation

TSUKEN posted new orders received of ¥10,440 million andof operations following a reassessment of service areas fornet sales of ¥28,780 million. This was due to steady perfor-

total service order implementation projects, promoted

mances in IRU related projects, as well as orders received

reciprocal support in our construction and maintenancefor and completion of large-scale steel tower construction

divisions, and reduced outsourcing costs. Through these andprojects in the mobile communications business. Withother initiatives, we worked hard to shore up earnings.

respect to earnings, ordinary income totaled ¥1,160 million,

New orders received increased 2.9% year on year to

thanks to the solid sales figure, as well as a group-wide effort¥27,720 million, thanks to healthy performances mainly by

to improve operations and reduce business expenses. Net

the IRU related and terrestrial digital broadcasting businesses.

income amounted to ¥1,480 million.

However, our total service order implementation projects
faced slower progress due to concentration of work and

COMSYS JOHO SYSTEM Groupheavier than expected snowfall in the latter half of the fiscal

In the year under review, the COMSYS JOHO SYSTEM Group

year, as well as our acceptance of support requests for IRU

conducted business with an emphasis on two priorities:

related projects. As a result, net sales declined 6.7% year on

strengthening sales activities aimed at attracting and expand-

year to ¥25,790 million. On the earnings front, operating

ing orders, and bolstering earnings by enhancing capacity

income increased year on year, thanks to a minimizing ofutilization rates and raising project management quality.

works outside construction service areas, rigorous efforts toThanks to healthy progress of projects for telecommunica-

cut operational outsourcing and materials costs, a reduction

tions carriers and the public sector, new orders received

in unprofitable projects through careful selection and accep-

increased 5.5% year on year to ¥10,410 million, while net

tance of orders, and savings in operating expenses. However,sales were down 2.7% year on year to ¥9,670 million. With

ordinary income was down 6.3% year on year to ¥690 million,

respect to earnings, the Group sought to raise productivity

due in part to the impact of negative goodwill recognized as

by improving process management, while striving to boost

other income in the previous fiscal year being recorded undercapacity utiliza­tion rates. As a result, ordinary income reachedextraordinary income in the current fiscal year. As a result,¥340 million, up from ¥40 million in the previous year. The

net income surged 132.6% year on year to ¥850 million.

Group posted special severance payments as part of mea-

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Information

while forging close regional ties.

on achieving further dramatic progress in our IT business,

Financial Statements

motivation. We also managed our operations with a focus

Topicstelecommunication technologies to advance its businessCorporate Social
Responsibility (CSR)

enhance corporate value by leveraging its information andaim of nurturing human resources and boosting employee

Corporate Governanceslogan of “Expanding skills and boosting abilities” with theInformation on
Major Subsidiaries

In the year under review, the TSUKEN Group sought to12

Review of Operations

TSUKEN GroupFor the year under review, the TOSYS Group embraced the08

Business at a Glance

TOSYS Group

President’s Message

Information on Major Subsidiaries

38

sures to fortify its business foundation. Accordingly, net
income totaled ¥80 million, compared with ¥2 million inprevious fiscal year.

FOR MORE INFORMATIONTo Contents

P.12

Click here for Business at a Glance

P.40

Click here for Our Group Formation

COMSYS Holdings Corporation Annual Report 201123

Corporate Governance
Basic Corporate Governance Philosophy

as observers, to ensure that they fully understand the basis

The philosophy of the COMSYS Group is based on thefor all management decisions.

three key management pillars of sales and earnings growth,

In each business segment, an Operating Committee underincreased operation efficiency, and unification of our

the supervision of the responsible director holds regularbusiness operations. Mindful always of these three con-meetings to conduct efficient operational management.

cepts, the COMSYS Group strives to enhance corporate

The term of office for directors is set at one year in ordervalue and win the trust and admiration of all stakeholders

to clarify directors’ management responsibility every fiscal

through its performance.

year, and to flexibly structure an optimal management teamThrough our corporate governance policy, the COMSYS

in step with changes in the business environment.

Group makes all possible efforts to strengthen the basic
functions of any company, through for example, improving

Status of an Internal Control Systemsecurity and quality standards, ensuring compliance, imple-

Based on the Companies Act of Japan, the Company imple-

menting the Group’s code of conduct, and bolstering internal

ments its internal control system based on a “Basic Policy

control systems.

on Establishing an Internal Control System” that has been
approved by resolution of the Board of Directors. In regard

Organizational Structure

to internal control over financial reporting based on the

Corporate governance at COMSYS Holdings Corporation

Financial Instruments and Exchange Law of Japan, the(the “Company”) adopts the corporate auditor system, which

Company has reinforced measures to eliminate deficiencies

by Japanese law stipulates an organizational structure

by making improvements in the organizational structure andconsisting of a general shareholders’ meeting, Board ofcoverage of these internal controls, through the establish-

Directors, Board of Corporate Auditors and other organiza-

ment of an Internal Control Office within the Internal Control

tion. The Board of Directors has decided to structure the

Audit Department.

Board around directors well versed in the Company’s operations with the aim of enhancing management efficiency.

Establishing a Compliance Structure

Meanwhile, the Company has reinforced auditing functions

Based on its internal Compliance Program, the Company has

by appointing outside corporate auditors who now haveset forth Compliance Action Guidelines and has establishedstronger legal authority to audit company activities, in order

the Compliance Committee within the above framework.

to ensure sound management.

This Committee, which is chaired by the president, is

The ten-member Board of Directors is the highest

made up of representatives from the Company and each ofdecision-making body with respect to management strategy.

the core operating subsidiaries, as well as outside corporate

Based on internal rules governing the Board of Directors,

auditors. The Committee oversees compliance throughout

the Board meets regularly and as necessary to discuss matters

the COMSYS Group, and strives to increase the COMSYS

stipulated by laws and regulations and to decide on impor-

Group’s awareness of compliance and establish an effective

tant management issues. Every quarter, the directors respon-compliance structure through various discussions. Allsible for each business segment report to the Board of

COMSYS Group companies have set up similar complianceDirectors on progress with business execution based oncommittees of their own. These committees work to estab-policies determined by the Board.

lish an effective compliance structure by implementing

Five corporate auditors, including outside corporate

educational and training programs, as part of efforts toauditors, attend meetings of the Board of Directors anddeepen employee understanding of the corporate philoso-

express their views on issues related to business execution,phy and action guidelines of each respective COMSYS

and monitor the directors’ performance of their duties.

Group company.

The Senior Management Committee is made up of
directors and the standing auditor. In principle, this committee meets once a month to examine and discuss issues
related to key decisions, in an effort to improve the efficiencyof business execution. The heads of each operating department attend meetings of the Senior Management Committee

24

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COMSYS Holdings Corporation Annual Report 2011

Board of Directors and Senior Management Committee

established a Risk Management Committee, chaired by themeetings and other reports, are stored and managed

president and made up of directors from the Company andappropriately based on the Group’s internal document

each of the core operating subsidiaries.

management rules.

In August 2006, the Basic Policy on Risk Management

Furthermore, in order to improve the efficiency of opera-

was formulated and similar risk management committees

tions and business execution, after ensuring an adequate

were established at each group company, among otherlevel of information security, the Company is working tomeasures. In this manner, efforts are being made to properly

deploy various information systems to put in place a frame-

address the business risks faced by each Group company,

work for sharing the latest management information.

and to minimize the materialization of each risk.
The Company has formulated Risk Management Guide-

Establishing a Group Management Structurelines and Crisis Management Guidelines and will strive toImportant management decisions within the COMSYS Group

maintain stable operations and ensure steady growth at theare reported to and discussed by the Senior Management

Company and the COMSYS Group by practicing effective

Committee and the Board of Directors in line with Grouprisk management.

Operation Standards, which clarify decision-making and

For example, the COMSYS Group manages operational

reporting rules for the COMSYS Group. In this manner, therisk by ensuring that Group companies work to acquire andgroup management and monitoring framework is centered

maintain certifications for management systems tailored toon the Company.

their operations, such as ISO 9001, ISO 14001, COHSMS

In order to ensure that all COMSYS Group operations are(Construction Occupational Health and Safety Management

carried out appropriately, the directors of each core operat-

Systems), ISMS (Information Security Management Systems)

ing subsidiary also participate as members in the various

and Privacy Mark certifications.

Group committees established within the Company, including the CSR Committee, the Compliance Committee andCSR Activities

the Risk Management Committee. In this way, the COMSYSThe Company and the COMSYS Group have established theGroup ensures that all policies and decisions discussed by

CSR Committee to coordinate CSR activities Group-wide

these groups are reported to and thoroughly understood bywith the aim of ensuring that the Group actively fulfills its

each Group company.

economic and social responsibilities, including social contribution activities, as a good corporate citizen.

In addition, the Group has formed the COMSYS Group
Presidents Committee, which is made up of the presidents

The CSR Committee is engaged in CSR activities address-of COMSYS Group companies. This committee meets regu-

ing various themes, such as compliance, corporate gover-larly and works to ensure that management policies andnance, risk management, information disclosure andactivities are clearly understood by all members.

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Informationmust be managed appropriately. Therefore, the Group has

Financial Statements

performance of directors’ duties, including minutes of the

TopicsGroup is aware that it faces a variety of business risks which

12

Corporate Social
Responsibility (CSR)

Important documents related to business activities and the

Corporate Governancea rapidly changing business environment, the COMSYSInformation on
Major Subsidiaries

Establishing an Information Management
Structure

Review of Operations

In its efforts to maintain and enhance corporate value amid

08

Business at a Glance

Establishing a Risk Management Structure

President’s Message

Corporate Governance

38

protection, security countermeasures, social contributions
and environmental issues.

To Contents

COMSYS Holdings Corporation Annual Report 201125

Corporate GovernanceInternal Auditing and Corporate Auditors

Group mainly by sharing information and exchanging views,

The Company’s internal auditing organization consists of anin order to improve the effectiveness of audits.

Internal Audit Office with a staff of 12 employees within theInternal Control Audit Department.

Strengthening Disclosure and Accountability

This Office formulates internal auditing policies based

The Company provides timely and appropriate disclosure

on top management requirements, and implements internalof crucial management information in order to promote

audits of the Company and all Group companies. These

understanding among shareholders, investors and all otheractivities are intended to ensure that each business risk faced

stakeholders and obtain a fair evaluation of its activities.

by the Group is minimized, while maximizing the quality ofbusiness operations.

The Company discloses information on new orders
received on a monthly basis, as well as financial results on a

The Board of Corporate Auditors has five members,

quarterly basis. In conjunction with interim and full-year

three of whom are outside corporate auditors. No employ-earnings announcements, the Company holds businessees are specifically assigned to assist the corporate auditorspresentations to clearly explain both its performance andwith their activities. If such assistance is required, there isoutlook. Individual and small group meetings with investors

a structure in place for addressing personnel issues suchand securities analysts are also held in both Japan andas determining appointees, and ensuring independence

overseas countries.

from directors.

The Company also seeks to enhance its investor relations

In addition, based on the rules governing the Board of(IR) website by posting presentation materials, news releases

Corporate Auditors, directors and employees are required

and other information on this website in a timely andto report on major business activities or issues that could

straightforward manner.

affect the COMSYS Group’s operations or performance tothe corporate auditors.

Personal Information Protection

Corporate auditors may request further information on

Recognizing that properly protecting and managing personal

the above mentioned reporting at any time as necessary, as

and other information is crucial to gaining the trust of custom-

well as other required disclosure.

ers and society as a whole, the Personal Information Protec-

The corporate auditors regularly attend both regular andtion and Administration Committee has been established to

extraordinary meetings of the Board of Directors as well as

oversee activities throughout the COMSYS Group. Concur-

meetings of the Senior Management Committee, the CSR

rently, the Personal Information Protection Policy and otherCommittee, the Compliance Committee and other important

guidelines have been drafted and adopted to ensure thatinternal committee meetings or discussions. This structure

information security management is fully implemented at allhas been established to allow the corporate auditors to verify

Group companies.

the status of business execution on a regular basis and to
express their views on these matters.

At the same time, every COMSYS Group company works
hard to protect personal information by establishing similar

The corporate auditors also hold regular meetings withcommittees and measures of the COMSYS Group, as well

the president to directly express their views on issues related

as operating management systems of ISMS and the Privacy

to business execution and other topics.

Mark to acquire and maintain these certifications.

In accordance with audit plans formulated by the Boardof Corporate Auditors, the corporate auditors of COMSYS
Holdings regularly check to see whether business operations
are executed appropriately and efficiently by maintaining
close ties with the Internal Audit Department and with theGroup’s independent auditor. For example, the corporate
auditors accompany the independent auditor and others on
on-site internal and financial audits as observers. The corporate auditors of COMSYS Holdings also convene regularmeetings with their counterparts at core COMSYS Group
companies, and maintain close ties within the COMSYS26

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COMSYS Holdings Corporation Annual Report 2011

information-rich society, the role of the COMSYS Group iscompanies and make a collective effort to conduct businessto build reliable, safe and convenient communications

with CSR in mind.

infrastructure and support the networks that connect every
corner of society like clockwork. This is, simultaneously, our
responsibility to society as a corporation.
Our mission is to build high-quality, highly reliable communications infrastructure while giving consideration to theenvironment and to help create an information-rich societythat coexists harmoniously with the global environment.

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Information

forward, we intend to further enhance CSR activities at Group

Financial Statements

promoting CSR throughout the COMSYS Group. Goinginformation as they want, regardless of time or place. In thisTopicstion of a society in which everyone has access to as much

Corporate Social
Responsibility (CSR)

the CSR Promotion Office to establish a framework for

Corporate Governance

In April 2009, COMSYS Holdings Corporation createduitous infrastructure has continued to support the materializa-

Information on
Major Subsidiaries

In recent years, the advancement of broadband and ubiq-

12

Review of Operations

Society at Large

08

Business at a Glance

Helping to Build a Society With Enriched Interpersonal Relationships and Ties Between People andPresident’s Message

Basic Approach to CSR

38

Relationship Between Management Policies and CSRManagement Policies
Fortify the COMSYS Group’s
dominant position as Japan’s No. 1
communications infrastructure
construction company

Strive to maximize synergies acrossthe COMSYS Group

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

Measures to Achieve Management Policies (“Group Innovation 2010”)
Growth in revenue and income

Enhance operational efficiency

Institute integrated management(1) Expand the Information Systems Business(2) Expand adjacent business of telecommunication carriers’ operation and Next-Generation
Network (NGN) related business domain(3) Expand into new sectors of the ICT
Solutions business(1) Integration of common operations among
the Group(2) Extend centralized procurement throughout
the Group(3) Expand kaizen (improvement) throughout theentire Group(1) Integrate and coordinate group operational
platforms(2) Building a common platform

Help bring about a “ubiquitous network society” to serve as the infrastructure of a “Sustainable Society”
CSR at the COMSYS Group

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

To Contents

COMSYS Holdings Corporation Annual Report 201127

Topics

Response to the Great East Japan Earthquake

The COMSYS Group offers its heartfelt sympathies to allother forms of assistance in the disaster-stricken areas. In

those affected by the Great East Japan Earthquake that

addition, the Group is making preparations to ensure thatstruck on March 11, 2011, and prays for the earliest possible

it is ready to fully respond to future calls for full-scale restora-

recovery of the affected regions.

tion work in the future.

In regard to earthquake damage at the COMSYS Group,

Furthermore, COMSYS Holdings Group companies have

we are fortunate to report that no personal injuries or fatali-

contributed a matching donation equal to the amount ofties were sustained among COMSYS Group employees as

donations collected from Group employees to assist witha result of the earthquake. Despite some damage to certain

the recovery effort. The Group donated a total of ¥100 million

offices and other buildings as well as equipment, there was

as relief money to the Japanese Red Cross Society.

no serious damage that would adversely impact the continuity of the Group’s business operations.
Since immediately after the earthquake, the COMSYSGroup has done its utmost to assist with the restoration of

Nippon COMSYS Corporation has newly established a“disaster relief special leave program,” to support employees
taking leave for a certain period to assist with disasterrecovery efforts.

the affected areas. At the request of communications carriers

Going forward, the COMSYS Group intends to contributeand others, we have mobilized a Group-wide support force

as a company to disaster recovery efforts. The entire COMSYSof nearly 7,000 employees to ensure communications capa-

Group commit fully to help Japan rebuild from this major

bilities, install emergency communications lines and provide

disaster and emerge from this national crisis.

Restoration work in Yamada City, Iwate Prefecture

28

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COMSYS Holdings Corporation Annual Report 2011

President’s Message

08

Business at a Glance

12

Review of Operations

14

Information on
Major Subsidiaries

22

Corporate Governance24

Corporate Social
Responsibility (CSR)

27

Topics28

Financial Statements

30

Information

Topics38

Construction Work in the IRU Related and Digital Terrestrial Broadcasting Businesses

IT infrastructure development projects have been promoted

the above mentioned construction works have been con-by local governments nationwide for two main purposes.

ducted are grouped into two, (1) regions where most areas

The first is to develop fiber-optic broadband communica-

have difficulty viewing terrestrial digital TV broadcasts due

tions infrastructure in remote regions. The second is toto unfavorable geographical conditions, such as mountainous

make digital terrestrial TV broadcasting services available

locations and remote islands, and (2) areas where broadband

in areas where it is difficult to view such broadcasts, inservice infrastructure are underdeveloped due to bottlenecks

preparation for Japan’s complete switch to digital broad-such as investment efficiency issues.

casting in July 2011. For this reason, there was a peak in

The construction work was undertaken as part of a projectorders for installation work on fiber-optic facilities underto eliminate the “digital divide” in rural areas. Carrying thethe IRU arrangement between municipalities and telecom-

hopes and expectations of local residents, we were able tomunication carriers.

safely complete construction work even during the bitter cold

In this context, Nippon COMSYS Corporation, Tsuken
Corporation and other COMSYS Group companies workedon communications infrastructure construction projects
combining the development of broadband services andof winter and in mountainous areas with poor footing.
* IRU (Indefeasible Right of Use) construction entails the construction of optical fiber andother information and communications infrastructure by local governments using
national government subsidies and other funding, and the provision of fiber-optic
services by communications carriers through the long-term lease of this infrastructure
based on IRU agreements.

terrestrial digital broadcasting infrastructure using fiber-optic
networks in nation-wide locations of the Group. The regions

IRU related works in Hokkaido

To Contents

Digital broadcasting construction works in the Ogasawara Islands

COMSYS Holdings Corporation Annual Report 201129

Consolidated Balance Sheets
COMSYS Holdings Corporation and Consolidated Subsidiaries
As of 31st March, 2010 and 2011
2010

Millions of Yen
2011

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

¥ 23,609¥ 18,265

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

79,823102,993

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

104

159

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

18,313

14,539Real estate for sale ���������������������������������������������������������������������������������������������������������������������������������

102

3,257

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

470

986

ASSETS
Current assets:

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

476

691

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

2,734

3,053

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

3,520

6,107

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

(121)

(194)

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

129,035

149,858

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

35,09745,798Less: Accumulated depreciation ���������������������������������������������������������������������������������������������������

(16,176)(21,288)

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

18,92024,510Machinery, vehicles and equipment���������������������������������������������������������������������������������������������������

18,351

22,252

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

(13,685)(16,164)

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

4,665

6,088

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

32,27933,126

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

38

70

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

(11)

(28)

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

27

42

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

1,420

1

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

57,313

63,769Intangible assets���������������������������������������������������������������������������������������������������������������������������������

6,395

2,677

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

7,119

7,128

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

2,519

1,980

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

4,264

4,407

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

1,836

3,709

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

5,643

6,039

Investments and other assets:

30

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

(2,317)(2,136)

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

19,065

21,129Total fixed assets�������������������������������������������������������������������������������������������������������������������������������������

82,77387,577

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

¥211,809¥237,436

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COMSYS Holdings Corporation Annual Report 2011

11

8,124

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

1,710

2,261

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

3,706

1,228

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

110

134

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

140

24

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

6,878

7,431

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

53,581

65,921Long-term debt���������������������������������������������������������������������������������������������������������������������������������������

—49

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

1,090

1,205

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

2,365

1,865

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

2,287

5,796

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

175

302

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

538

526

14

22

24

27

28

30

Information

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

Financial Statements¥ 46,716

Topics¥ 41,023

Corporate Social
Responsibility (CSR)

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

12

Corporate Governance

Current liabilities:

Information on
Major Subsidiaries

LIABILITIESReview of Operations

Millions of Yen
2011

08

Business at a Glance

2010

President’s Message

Consolidated Balance Sheets

38

Long-term liabilities:

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

6,458

9,746

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

60,04075,667

10,00010,000

NET ASSETS
Shareholders’ equity:
Common stock�����������������������������������������������������������������������������������������������������������������������������������������
Additional paid-in capita �����������������������������������������������������������������������������������������������������������������������

57,01655,346

Retained earnings�����������������������������������������������������������������������������������������������������������������������������������

111,605

119,194

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

(19,522)(14,870)

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

159,100

169,671

Accumulated other comprehensive income:Unrealized gain (loss) on other securities ���������������������������������������������������������������������������������������������

(443)

(374)

Unrealized loss on land revaluation�������������������������������������������������������������������������������������������������������

(7,896)(8,453)

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

(8,340)(8,827)

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

249

364

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

759

560

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

151,768

161,768

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

¥211,809¥237,436

To Contents

COMSYS Holdings Corporation Annual Report 201131

Consolidated Statements of Income
COMSYS Holdings Corporation and Consolidated Subsidiaries
Years ended 31st March, 2010 and 2011
2010

Millions of Yen
2011

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

¥293,086¥315,480

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

260,294

284,427

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

32,791

31,052

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

20,25019,266

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

12,54011,785

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

86

68

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

122

136

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

87—

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

149

131

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

144

188

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

591

525

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

3

22

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

—40

Other expenses:

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

7

6

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

—48

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

8

52

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

19

170

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

13,113

12,140Gain on sales of fixed assets�������������������������������������������������������������������������������������������������������������������

—108

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

79—

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

—116

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

77

232

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

—

7,543

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

32

91

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

189

8,091

—

675

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

—108

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

137

182

Extraordinary income:Extraordinary loss:
Write-down on investments in securities�����������������������������������������������������������������������������������������������

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

80—

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

122

1,841

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

135

1,246

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

—

3,827

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

180

1,156

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

655

9,038

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

12,647

11,193

Income taxes:

32

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

4,300

3,636

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

1,228(2,077)

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

5,529

1,558

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

—

9,634

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

20

90

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

¥   7,097¥   9,543

To Contents

COMSYS Holdings Corporation Annual Report 2011

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

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

10,00010,00057,01557,016

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

1(1,670)Total changes during the period �����������������������������������������������������������������������������������������������

1(1,670)

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

57,01655,346

107,097

111,605

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

(2,589)(2,511)

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

7,097

9,543

Reversal of unrealized loss on land revaluation�������������������������������������������������������������������������

—556

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

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

4,507

7,588

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

111,605

119,194(14,529)(19,522)

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

(5,006)(3,002)

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

14

8,060

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

—

(406)

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

(4,992)

4,652

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

(19,522)(14,870)

159,583

159,100(2,589)(2,511)

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

Total shareholders’ equity:
Balance at the end of the previous period �����������������������������������������������������������������������������������

14

22

24

27

28

30

Information¥ 10,000Financial Statements¥ 10,000

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

12

Corporate Social
Responsibility (CSR)

Common stock:

Corporate Governance

Shareholders’ equity:

Information on
Major Subsidiaries

Millions of Yen
2011

Review of Operations

2010

08

Business at a Glance

COMSYS Holdings Corporation and Consolidated Subsidiaries
Years ended 31st March, 2010 and 2011

President’s Message

Consolidated Statements of Changes in Net Assets

38

Changes during the period
Cash dividends�����������������������������������������������������������������������������������������������������������������������������
Net income�����������������������������������������������������������������������������������������������������������������������������������

7,097

9,543

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

(5,006)(3,002)

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

15

6,390

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

—

(406)

Reversal of unrealized loss on land revaluation�������������������������������������������������������������������������

—556

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

(482)

10,570

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

159,100

169,671

To Contents

COMSYS Holdings Corporation Annual Report 201133

Consolidated Statements of Changes in Net Assets

2010

Millions of Yen
2011

(857)

(443)

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

413

69

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

413

69

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

(443)

(374)

(7,896)(7,896)—(556)

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

Unrealized 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)

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

(7,896)(8,453)(8,753)(8,340)Total accumulated other comprehensive income:Balance at the end of the previous period �����������������������������������������������������������������������������������
Changes during the period
Net changes during the period except for shareholders’ equity �������������������������������������������

413

(486)

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

413

(486)

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

(8,340)(8,827)

69

249

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

179

114

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

179

114

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

249

364

876

759

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

(117)

(198)

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

(117)

(198)

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

759

560

151,775

151,768(2,589)(2,511)

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���������������������������������������������������������������������������������������������������������������������������������

34

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

7,097

9,543

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

(5,006)(3,002)

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

15

6,390

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

—

(406)

Reversal of unrealized loss on land revaluation����������������������������������������������������������������������������

—556

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

475

(571)

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

(7)

9,999

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

¥151,768¥161,768

To Contents

COMSYS Holdings Corporation Annual Report 2011

1,079

—

6

(209)
—
(9,267)(1,616)88(1,889)2,093
91(9,257)—62(6,162)(822)
1,783(2,267)2,708
55(3,418)

(30)
—
(31)
(10)
(5,006)15(2,589)(3)—(11)(7,669)—(6,871)
29,876¥23,005

5,887
30
(742)
—
(3,002)0(2,511)
(4)
(21)
—
(364)
(0)
(5,369)23,005¥17,635COMSYS Holdings Corporation Annual Report 2011

24

27

28

30

Information—

22

Financial Statements

60
(162)
239

14

Topics

1,874
(535)
113

12

Corporate Social
Responsibility (CSR)¥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)

Corporate Governance

To Contents¥12,647
4,951
—
55
12
(547)
(209)
3
3,755
2,191
(5,716)
310
(908)
(87)
—
—
350
16,807209(3)(6,959)10,055

Information on
Major Subsidiaries

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 scopeof consolidation�������������������������������������������������������������������������������������������������������������������������������������
Payments for sale of stocks of subsidiaries resulting in changes in scopeof 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:
Increase (decrease) in short-term borrowings, net�������������������������������������������������������������������������������
Proceeds from long-term loans payable�����������������������������������������������������������������������������������������������
Repayment of long-term debt���������������������������������������������������������������������������������������������������������������
Proceeds from 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�����������������������������������������������������������������������������������������������������������������
Other �������������������������������������������������������������������������������������������������������������������������������������������������������
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
2011

Review of Operations

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) increase in allowance for doubtful receivables �����������������������������������������������������������������
Decrease in accrued severance indemnities�����������������������������������������������������������������������������������������
Interest and dividends received�������������������������������������������������������������������������������������������������������������
Interest expenses�������������������������������������������������������������������������������������������������������������������������������������
(Increase) decrease in receivables—trade���������������������������������������������������������������������������������������������
Decrease in inventories���������������������������������������������������������������������������������������������������������������������������
Increase (decrease) in payables—trade�������������������������������������������������������������������������������������������������
(Increase) decrease in other assets �������������������������������������������������������������������������������������������������������
Decrease in other liabilities �������������������������������������������������������������������������������������������������������������������
Amortization of negative goodwill���������������������������������������������������������������������������������������������������������
Gain on negative goodwill���������������������������������������������������������������������������������������������������������������������
Write-down on software�������������������������������������������������������������������������������������������������������������������������
Other, net�������������������������������������������������������������������������������������������������������������������������������������������������

2010

08

Business at a Glance

COMSYS Holdings Corporation and Consolidated Subsidiaries
Years ended 31st March, 2010 and 2011

President’s Message

Consolidated Statements of Cash Flows

38

35

Summary of Business Results and Financial Data for COMSYS Holdings Corporation
Year ended 31st, MarchNet Sales(millions of yen)

400,000
293,681300,000

307,485

336,518

327,526

321,185

293,086

315,480

308,000

248,960

200,000
100,000
0

04

05

06

07

08

09

16,29815,61010

11

12,54011,7851011

12(Forecast)

Operating Income(millions of yen)

25,00019,21320,00015,062

15,00016,318

10,786

10,00012,300

5,000
0

04

05

06

07

08

09

12

(Forecast)

Recurring Profit(millions of yen)

25,00021,12020,00017,14418,753

18,22817,14415,00013,113

11,40012,14012,80010,000
5,000
0

04

05

06

07

08

09

10

11

12

(Forecast)

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

(yen)

200

15,00012,382

12,00011,641160
10,062

10,030

9,000
6,000

8,349
6,591

04

n Net Income (left)

36

87.39
45.96

3,000
0

9,543

58.42

69.65

83.87

120

7,300

7,097
75.60

73.92

80
56.22

55.18

40

05

06

07

08

09

10

11

12

0

(Forecast)n Primary Earnings per Share (EPS) (right)

To Contents

COMSYS Holdings Corporation Annual Report 2011

08

Business at a Glance

12

Review of Operations

14

Information on
Major Subsidiaries

22

Corporate Governance24

Corporate Social
Responsibility (CSR)

27

Topics28

Financial Statements

30

Information

Total Assets

President’s Message

Since its Establishment

38(millions of yen)

250,000
211,718

208,68004

05

200,000

220,785229,953

224,121220,651

07

08

09

237,436
211,809

150,000
100,000
50,000
0

06

10

11

Net Assets/Book Value per Share (BPS)(millions of yen)

(yen)

200,000

2,000

150,000
100,000

151,775
1,091.83

1,033.87

964.70906.92859.24150,417

147,005

137,160

128,062

121,326

161,768

151,768

1,500
1,199.29

1,151.81

1,238.66

1,000
500

50,000004

n Net Assets (left)

05

06

07

08

09

10

66.5%

68.4%

71.2%

0

11

n Book Value per Share (BPS) (right)

Shareholders’ Equity Ratio/Return on Equity (ROE)
(%)

80
61.4%

62.1%

63.4%

5.7%

6.7%

7.6%

8.8%

7.9%

6.7%

4.7%

6.1%

04

05

06

07

08

09

10

11

57.3%

60

67.7%

40
20
0

n

Shareholders’ Equity Ratio (left)nReturn on Equity (ROE) (right)

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

(thousand shares)

15,000

25
20.00

20
15
10

26.1%

15.00

*1

17.00

17.00

19.5%

20.3%

15.00

26.5%

25.7%
21.5%

7.00

4,386.000*25,544.000

20.00

20.00

36.2%

20.00
35.6%

27.1%

9,000
6,000

5,250.200
3,612.700

512,0003,000

998.000

0n Interim

04

05

06

n Year-end (left) n Acquisitions of Treasury Stock (right)

07
n

08

09

10

11

12

0

(Forecast)

Consolidated Payout Ratio*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.

To Contents

COMSYS Holdings Corporation Annual Report 201137

COMSYS Holdings Information
Corporate Data

Corporate History

As of 31st March, 2011

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 share 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.

29th September, 2003
Paid-in Capital:¥10 billion
Number of Employees:

10,012 (Consolidated)

Directors and Officers

April 2007

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.
October 2005

Hajime Takashima

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.

Directors

April 2005

Yoji Oku

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

As of 29th June, 2011

Representative Director and President(President and Representative Director of Nippon COMSYS Corporation)(President and Representative Director of SANWA COMSYS Engineering
Corporation)

Hidetoshi Miura

January 2005

(President and Representative Director of Tsuken Co., Ltd.)The NTT Information Telecommunication Engineering Businessof SANWA ELEC Co., Ltd. was centralized at Nippon COMSYS
Corporation.

Masaru Kudo

September 2004

(President and Representative Director of TOSYS Corporation)

Yoneki Tahara(President and Representative Director of COMSYS JOHO SYSTEM
Corporation)

Yoshihiro Mimata
Hirofumi Yamasaki
Akio Ogawa
Tatsufumi Nakajima
Tomoaki Yamamoto
Corporate Auditors
Akinori Ishigaki

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.
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.

Akiyoshi Sekiguchi
Masahiko Miyashita*
Masahiro Takeshita*
Kichiroh Akino** Outside auditors

38

To Contents

December 2001

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

The Company was renamed Nippon COMSYS Corporation.

COMSYS Holdings Corporation Annual Report 2011

President’s Message
Business at a Glance

12

Review of Operations

14

Information on
Major Subsidiaries

22

Corporate Governance24

Corporate Social
Responsibility (CSR)

27

Topics28

Financial Statements

30

Information

Organization Chart

08

38

As of 29th June, 2011

Board of Directors
Board of Corporate Auditors

President

Senior Management Committee
CSR Committee
Compliance Committee
Risk Management Committee
Personal Information Protection
and Administration Committee

Corporate Planning
Department

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

Wakkanai
Asahikawa

Kitami
KushiroOtaru

Hokkaido

Muroran
Hakodate

ObihiroTomakomai

Kanto Naka

TohokuNIIGATA

Niigata

NAGANO

Hokuriku

NaganoUeda/Saku/Shiojiri/Ina

Tochigi
TOKYO
Chiba
Kanagawa

Chugoku
KyushuShizuoka
KansaiTokai

Nishi Nippon
Takamatsu
ShikokuHead Office/COMSYS Holdings Corporation
Head Office/Nippon COMSYS Corporation
Head Office/SANWA COMSYS Engineering Corporation

Jakarta Branch Office
Okinawa

Head Office/TOSYS Corporation
Head Office/TSUKEN Corporation
Branch Office/TOSYS Corporation
Branch/Nippon COMSYS Corporation
Branch/SANWA COMSYS Engineering Corporation
Branch/TOSYS Corporation
Branch/TSUKEN Corporation

To Contents

COMSYS Holdings Corporation Annual Report 201139

Our Group Formation
The COMSYS Group’s (COMSYS Holdings and subsidiaries and afﬁliates) main businesses compriseelectrical and telecommunications infrastructure construction services centered on telecommunications
infrastructure and electrical facilities, and other businesses, including the information processing-related
business. As of March 2011, 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,
Nagano 381-0193, Japan

Establishment:
December 1951

Establishment:
September 1947

Establishment:
January 1960

Number of Employees:
ConsolidatedNon-consolidated

4,833
3,296

Number of Employees:
ConsolidatedNon-consolidated

1,537
814

Number of Employees:
ConsolidatedNon-consolidated

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.

Tulip Life Co., Ltd.

SEC Hi Tec Co., Ltd.

Alstar Co., Ltd.

SUNCOM Technology Corporation

TOSYS Niigata Co., Ltd.

Nitto Tsuken Co., Ltd.
COMSYS Engineering Co., Ltd
WINTIQ Co., LtdCOMSYS Kansai Engineering Co., Ltd.

1,050
697

TOSYS Actis 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.

40

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COMSYS Holdings Corporation Annual Report 2011

Number of Employees:
ConsolidatedNon-consolidated

1,925
500

Number of Employees:
ConsolidatedNon-consolidated

490
357

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

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

Number of Consolidated
Subsidiaries:
12 companies

Number of Consolidated Subsidiary:
1 company

Consolidated Subsidiaries:

Consolidated Subsidiary:

TSUKEN ADVANCED SYSTEMSCORPORATIONCOMSYS Techno Co., Ltd.

Number of Employees:
Non-consolidated

135

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

Tsuken Techno Net Co, Ltd.

24

27

28

30

Information

Establishment:
October 2003

Financial Statements

Establishment:
April 2009

TopicsEstablishment:
April 1951

Corporate Social
Responsibility (CSR)

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

22

Corporate Governance

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

14

Information on
Major Subsidiaries

Address:
6-8, hondori 19-chome minami,
Shiraishi-ku ,Hokkaido 003-0026, Japan

12

Review of Operations

COMSYS Shared Services
Corporation

Business at a Glance

COMSYS JOHO SYSTEM
Corporation

Joined the COMSYS Group as the result ofa management integration in 2010

President’s Message

TSUKEN Corporation

08

38

TSUKEN TECHNOLOGY Co., Ltd.
Tsuken Act Corporation
TSUKEN BUSINESS CO., LTD.
Tsuken-Spa Co., Ltd.
Tsuken Hartec Corporation
Dououtsushin Corporation
Hokutoudensetsu Corporation
Daiyutsushinkensetsu Corporation
Tsuken Doutou Engineering Corporation
Tsuken Dounan Engineering Corporation

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COMSYS Holdings Corporation Annual Report 201141

Authorized: 580,000,000 shares
Issued: 145,977,886 shares

Number of Shareholders:
10,012

Date of Listing:
September 2003

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

Transfer Agent:
Mitsubishi UFJ Trust and Banking Corporation
Securities Department
4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8212

Japan Trustee Services Bank, Ltd.
(Trust Account 4)

10,948

7.49

9,489

6.50

6,834

4.68

5,166

3.53

4,096
3,759
2,977
2,583

2.80
2.57
2.04
1.76

1,791

1.22

1,751

1.20

14

22

24

27

28

30

Information

Common Stock:

12

Financial Statements

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.
(Re-Trust Account), Sumitomo ElectricIndustries, Ltd. (Employee Pension Trust Account))
Trust & Custody Services Bank, Ltd.
(Investment Trust Account)
JPMorgan Securities Japan Co., Ltd.
Nippon Life Insurance Company
The Furukawa Electric Co., Ltd.
Japan Trustee Services Bank, Ltd.
(Trust Account 9)

Percentage
of Total (%)

Topics29th June, 2011

Shares Held(Thousands)

Corporate Social
Responsibility (CSR)

Shareholders

Corporate Governance

Annual Shareholders’ Meeting:Information on
Major Subsidiaries

As of 31st March, 2011

Review of Operations

Major Shareholders:

31st March, 201108

Business at a Glance

Fiscal Year-End:

President’s Message

Investor Information

38

Auditor:
Certified Public Accountants of Japan
O-Yu Kyodo OfficeComposition of Shareholders:
As of 31st March, 2011

For Further Information of This Annual Report,
Please Contact
IR Department
Tel: +81-3-3448-7000 (direct)
Fax: +81-3-3448-7001
E-Mail: chd-ir@comsys.co.jp

n Securities Companies

5.2%

n Financial Institutions

41.3%

n Domestic Companies

9.6%

n Foreign Companies
and Individuals

19.6%

n Individuals and Others

24.3%

Stock Price Range(Yen)(Thousand of Shares)

1,200

120,000

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

10,0000

009/4 09/5 09/6 09/7 09/8 09/9 09/10 09/11 09/12 10/1 10/2 10/3 10/4 10/5 10/6 10/7 10/8 10/9 10/10 10/11 10/12 11/1 11/2 11/3 (Month)n n Stock Price (Left Scale)   n Monthly Trading Volume (Right Scale)42

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COMSYS Holdings Corporation Annual Report 2011