Presentation of Performance for the First Half
Fiscal Year Ending March 31, 2015

November 12, 2014

Contents
I . Overview of Performance for the First Half of the Fiscal Year Ending March 31, 2015
1. Highlights of the First Half Financial Statements

3

2. Details of the First Half Orders Received by Business Segment

4

3. Details of the First Half Sales by Business Segment

5

4. Details of First Half Operating Income

6

II . Full Year Forecasts for the Fiscal Year Ending March 31, 20157

III . Trends at Principal Carriers
1. Trends in NTT Fixed-Line Related Business8

2. Trends in NTT Mobile Business9

3. Trends in NCC Business10

IV . Solar Business1. Trends in and Impact of Solar Power Generation-Related Business

11

2. Solar Power Generation-Related Business

12

3. Business Expansion Post Solar Development

13

V . M&As for Top Line Expansion

14

VI . Policy on Shareholder Returns and Status of Treasury Stock15

I-1. Highlights of the First Half Financial Statements
Sales and profit growth largely in line with forecasts(Unit: ¥100 million)

Performance inprevious term

Comparisons withthe previous term

Forecasts

Percent of Net Sales

Percent of Net Sales

Difference

Percent of Net Sales

Orders Received

1,735

1,607

+127

1,650

+85

Net Sales

1,442

1,405

+37

1,490

-47

214

193

+21

220

-5

Performance

Gross Proﬁts

Comparisonswith forecasts
Difference

14.9%

13.7%

+1.2 percentage points

14.8%+0.1 percentage points

Selling, General and

102

86

+16

110

-7

Administrative Expenses

7.1%

6.2%

+0.9 percentage points

7.4%-0.3 percentage points

111

106

+5

110

+1

7.7%

7.6%

+0.1 percentage points

7.4%+0.3 percentage points

Operating Income

Remarks

Orders Received
Orders received were considerably higher thanboth the previous fiscal year and forecasts
for this ﬁscal year thanks to continued strong
performance in NCC Engineering business andsocial infrastructure business, as well as theconsolidation of the Ecosystem Japan Group(hereafter “Ecosystem Japan”).

Net Sales
Sales increased compared with the previous
ﬁscal year due to the sustained strong performance in solar-related projects and the consolidation of Ecosystem Japan.
However, sales fell slightly short of forecasts
due to delays in completion times resulting
from project postponements and delays inreceipt of orders.

Operating Income
Recurring Proﬁt

Net Income

113

109

+3

112

+1

7.8%

7.8%

+0.0 percentage points

7.5%+0.3 percentage points

68

61

+7

68

+0

4.8%

4.4%

+0.4 percentage points

4.6%+0.2 percentage points

As sales fell slightly short of forecasts, thegross profit did not improve, but operating
income growth was achieved compared withboth the previous ﬁscal year and forecasts forthe current ﬁscal year due to the effect of the
COMSYS WAYa structural reforms and reductions in SG&A expenses.

Note: Figures are rounded down to the nearest whole unit.

3I-2. Details of the First Half Orders Received by Business Segment(Unit: ¥100 million)• Increase due to consolidation of Ecosystem Japan• Increase in solar-related projects• Increase in water and sewerage work

Comparisons with
the Previous Term

+127

Social System-Related
and Other+75.4%(+7.9%)
Increase in au LTE-related projects

Effect of
Ecosystem Japan
consolidation• Increase in solar construction work
• Increase in water and sewerage• and C.C. Box work

NTT-G
-5.1%

NCC
+7.9%

IT
+1.6%

-47

+14

+4

+17

NTT Business (Access)Decline in orders reflecting end of
previous term’s utility pole renewal
projects in Hokkaido
NTT Business (Network)
Decline in orders reflecting end of
previous terms electric power-relatedtransmission projects
NTT Business (Mobile)
LTE-related projects in line withprevious term

Performance in Previous Term

+85(+5.2%)

NCC+19.4%
NTT-G
+2.8%

+11
+32

+24
Increase in
au LTE-related
projects+155

Increase inJapan Post’s
P-NET projects

1,607

Increase in network
integration workin Hokkaido

Social System-Related
and Other
+5.1%
IT
+4.0%

+100

Comparisonswith Forecasts

1,735

Performance

NTT Business (Access)Increase due to early start on
utility pole renewal work
NTT Business (Network)
Increase in switched transmission
work
NTT Business (Mobile)
In line with LTE-related project
forecasts

1,650

Target4

I-3. Details of the First Half Sales by Business Segment(Unit: ¥100 million)• Decline in Ecosystem Japan sales• Decline due to delays in solar power• generation-related construction starts

Comparisons with
the Previous Term

Comparisonswith Forecasts

Increase in au
LTE-related projects+37

Social SystemRelated• Increase due to consolidation of Ecosystem Japanand Other• Increase in expressway-related projects-32-11.9%IT
Social System-Related-14.0%and Other+56.1%-31(+2.6%)

NTT-G
-1.9%

-15

Decline in sales reflecting end
Effect ofof previous term’s PBX work
Ecosystem Japanat company N
consolidation

NCC-12.1%

-24

+14

+2

NCC
+8.9%

NTT-G
+0.3%

(-3.2%)

Decline due to delays inreceipt of orders for alliancecompanies work (medical)

+75
IT
-3.3%

-6
Decline in sales reflecting endof previous term’s Softbank
platinum band projects

1,405

-47

NTT Business (Access)Decline in utility pole renewal
work
NTT Business (Mobile)
Increase in LTE-related projects

+83

1,442

1,490

Performance

TargetNTT Business (Access)Decline in orders reflecting end of
previous term’s utility pole renewal
projects in Hokkaido
NTT Business (Mobile)
Increase in LTE-related projects

Performance in Previous Term

5

I-4. Details of First Half Operating Income(Unit: ¥100 million)

Comparisons with
the Previous Term

Structuralreforms andimproved
productivity+5(+4.9%)

Improvement
due tonet sales growthand product mix

Increased expenses
due toImprovement
consolidation of
due tocost reduction Ecosystem Japan

Comparisonswith Forecasts+3+1(+1.3%)+11-19
Improvement Decline due todue tosales falling
cost reduction short of forecast

+10

+7

-6

(Reference)
Forecasts and Performance at the Ecosystem Japan Group
Second Quarter(Unit: ¥100 million)
Forecasts Performance Difference

106
Operating Margin(7.6%)

Orders Received

83

100

17

Net Sales

83

75

-8

111

110

Gross Proﬁts

19

14

-5

Operating Margin(7.7%)

Operating Margin(7.4%)

SG&A Expenses

19

17

-2

Operating Income

0

-3

-3

Performance

Target*Amortization of goodwill (¥250 million) not included in above SG&A expenses

Performance in Previous Term

6

II. Full Year Forecasts for the Fiscal Year Ending March 31, 2015
Full fiscal year results expected to remain in line with forecasts due to steady progress in first half
(Unit: ¥100 million)

FY March 2014
Performance

FY March 2015
Targets

Comparisons withFY March 2014

Percent of Net Sales

Percent of Net Sales

Difference

Orders Received

3,279

3,490

+210

Net Sales

3,313

3,450

+136

457

515

+57

13.8%

14.9%

+1.1 percentage points

Gross Proﬁts
Selling, General and

182

225

+43

Administrative Expenses

5.5%

6.5%

+1.0 percentage points

275

290

+14

8.3%

8.4%

+0.1 percentage points

Operating Income

Recurring Proﬁt

Net Income

280

295

+14

8.5%

8.6%

+0.1 percentage points

163

180

+16

4.9%

5.2%

+0.3 percentage points

Remarks

Orders Received
Orders received outperformed forecasts in the first half,
but with uncertainty in the second half, including concerns
over early receipts in the ﬁrst half and issues around powercompany connections for solar power, orders received are
anticipated to be in line with forecasts.
Net Sales
While sales in the ﬁrst half fell slightly short of forecasts,
efforts to raise completion rates backed by a large numberof construction projects in the pipeline aim to meet fullﬁscal year forecasts.
Operating Income
Structural reforms and other efforts over the full ﬁscal year
are helping to consolidate the proﬁtability structure so thata slight sales shortfall will not affect bottom line. Thus, fullﬁscal-year net income will be in line with forecasts.

Note: Figures are rounded down to the nearest whole unit.

7

III-1. Trends in NTT Fixed-Line Related Business
Number of FLET’S HIKARI subscriptions

NTT East and NTT West capex
7,549
6,907

Investment infiber optics
2,910

3,197

3,394

1,287

Investment infiber optics
2,400

3,200

1,637

1,584

1,400

(First-half) (Full-year)
Mar. 2013(First-half) (Full-year)
Mar. 2014(First-half) (Full-year)
Mar. 2015

NTT EAST

851

NTT WEST 654

1,805

1,845

1,875

1,656

1,730

935

975

1,018

1.034

1,048

721

755

786

810

826

3,200

Investment infiber optics
2,687
2,630

1,613
3,584

NTT WEST

6,400

3,513

1,657

NTT EAST(Unit: 10,000 contracts)

1,505

3,965

3,294

(Unit: ¥100 million)

Mar. 2011 Mar. 2012 Mar. 2013 Mar. 2014 Sept. 2015 Mar. 2015
(Results)(Target)Note: Figures are rounded down to the nearest whole unit.

Source: NTT Results Briefing Materials

Orders received at COMSYS Group (NTT Business−Access)(Unit: ¥100 million)

1,061
899

930
Second-halfFirst-half

545

452

516

478

Results
Mar. 2013

Results
Mar. 2014

469

457

430

Results Target
Mar. 2015

NTT East and West• Capital expenditures on downward trend due to completion of the next generation
network and optical ﬁber area expansion projects• Projects to upgrade network expected to be ongoing
No. of FLET’S subscriptions• Net increase on downward trend due to impact of smartphone and othermobile markets• No particular information announced related to work on NTT Hikari wholesaling(optical ﬁber collaboration)
COMSYS Group• First half outperformed forecasts due to early start on utility pole renewal work
• Gradual decline expected in light of market environment and capital
expenditures at customers, but orders received robust due to utility polerenewal work and other projects

COMSYS Group materials: Simple total for five companies; NTT Engineering business–Access8

III-2. Trends in NTT Mobile Business(Unit: ¥100 million)

NTT DOCOMO
Capital Expenditure Trends

6,900

6,900

Number of LTE base stations
Japan’s fastest 225Mbps service (LTE-Advanced)
launches during current fiscal year

[ First-half comparison ]Other(Smart Lifebusiness, etc.)

FOMA
LTE

2,710

2,800

10

40

3,018

2,925

1,481

1,057
9

260
1,277

1,859

Mar. 2014

Mar. 2015

Mar. 2015

Mar. 2015(First-half)(First-half)(Current forecast)(Initial forecast)

4,180

690

395

367

First half

339

317

Results
Mar. 2013

Results
Mar. 2014

100Mbps and higher
compatible base stations
40,000 base stations(Unit: ¥100 million)

329

66,30020,600 base stations

712

Second half

79,0004,060

Orders received at COMSYS Group (NTT Business−Mobile)
668

95,300323

323

Results Target
Mar. 2015

COMSYS Group materials: Simple total for five companies; NTT Engineering business–Mobile

June. 2014 (1Q)

Sept. 2014 (2Q)

End of year ending
March 2015 (projection)

Source: NTT DOCOMO Results Briefing Materials

NTT DOCOMO• No change in annual capital expenditures of ¥690 billion, but annual LTE
investment changed from ¥406 billion to ¥418 billion• LTE base stations progressing in line with target• Additional cost reductions of ¥50 billion this ﬁscal year (annual cost reduction
projection: ¥105 billion)[Medium-term projection for recovery of proﬁt] * extract• Cost reductions: Fiscal 2017 at least ¥400 billion from ﬁscal 2013
• Yearly capital expenditures during next three ﬁscal years: less than ¥650 billion
COMSYS Group• Orders received in the ﬁrst half for LTE work, etc., in line with targets• NTT DOCOMO’s LTE investment to increase from initial forecasts, so orders received in the second half expected to surpass target• COMSYS Group business plan for next ﬁscal year and beyond to be consideredbased on business trends at customers

9III-3. Trends in NCC Business(Unit: ¥100 million)

KDDI Capex

5,718

5,800

1,978

2,000

7,125

5,150

6,316

2,887
2,397
Fixed

986

Mobile

1,411

1,966
Mar. 2013

First-half Full-year(Forecast)Mar. 2015(Japan standards)

Source: KDDI Results Briefing Materials

Orders received at COMSYS Group (NCC)(Unit: ¥100 million)
Softbank platinum band

470

182

First-half

173
Results
Mar. 2012

3,750

3,800

Mar. 2014

Second-half

4,250

920
3,740

First-half Full-year

355(Unit: ¥100 million)

Softbank Capex (in Japan)

395

370

212

204

220

250

Results
Mar. 2013

183
Results
Mar. 2014

198

166

Results Target
Mar. 2015

Mar. 2014

Mar. 2015(Forecast)Mar. 2016(Forecast)Mar. 2017(Forecast)Targets (International accounting standards)
Source: Softbank Results Briefing Materials

KDDI• No change to annual capital expenditures for year ending March 2015
• First half up ¥48.9 billion year on year, 49.8% progress rate comparedwith target
Softbank• ¥550 billion in capital expenditures for year ending March 2015
announced at beginning of year; currently revised down to ¥515 billion (willreduce capital expenditure signiﬁcantly in future)• Aims to generate free cash ﬂow (FCF) by reducing investment
COMSYS Group• In ﬁrst half, orders received from Softbank Group generally in line withtargets, KDDI (au) Group still robust, and NCC overall exceeding targets• Aiming for meeting or surpassing full year targets, utilizing advantages ofﬁrst half

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

IV-1. Trends in and Impact of Solar Power Generation-Related Business
Freeze on solar power purchase by power companies has limited impact on COMSYS Group
Conditions in solar power generation-related business• Freeze on contracts for solar power purchases by power companies— Contracts for solar power purchases could be suspended for the time being in the Hokkaido, Tohoku, Shikoku and Kyushu areas.
• Ministry of Economy, Trade and Industry review of feed-in tariff programs for renewable energy— With the overemphasis of solar in renewable energy, a major review of purchase prices, etc. for solar is possible.
Current impact of freeze on purchases by power companies

Pending projects

10%

Total
project referrals

20%

C projects (projects in progress)30%

B projects (receipt of order highly probable)40%

A projects (receipt of order definite)¥50 – 60 billion

Possibility of negative
impact depending on
future conditions

Orders received anticipatedto be in line with current
fiscal year for next three
years based on large numberof projects in the pipeline¥12.0 billion in orders received anticipatedin second half of current fiscal year
* Includes Ecosystem Japan’s EPC projects

11IV-2. Solar Power Generation-Related Business

Mega-Solar Power Business
Investment up an additional ¥1.0 billion¥11.0 billion¥5.7 billion¥10.0 billion

Planned locations for construction of power stations
Showa-mura, Gunma Prefecture: 2.4MW

In operation
Commercialization ﬁnalized(Cooperation agreed)

Hitachiota City, Ibaraki Prefecture: 2.8MW

Tsu City, Mie Prefecture: 2.5MW

Kitaibaraki City, Ibaraki Prefecture: 5.9MW(scheduled completion December 2014)

Iga City, Mie Prefecture: 2.0MW

Tsukuba City, Ibaraki Prefecture: 1.9MW(scheduled completion March 2015)
Tsuchiura City, Ibaraki Prefecture: 1.3MW

Kato City, Hyogo Prefecture: 1.2MW(scheduled completion March 2015)

Nasushiobara City, Tochigi Prefecture: 8.5MW

Cumulative
Investment

InitialNew
Investment Target Investment Target

Goto City, Nagasaki Prefecture: 1.3MW

Solar Power Construction (EPC) Business
Orders received anticipated to be in line with initial targets¥19.0 billion¥10.3 billion¥6.0 billion¥3.9 billion
First Half Results

Full Year Results

March 2014

First Half Results

Full Year Forecast

March 2015

[ Main orders received ]Location

Generating capacity

Orders Received

Kyoto (5 sites)

4.8MW¥1.37 billion

Miyagi3.8MW¥0.98 billion

Fukushima

2.5MW¥0.68 billion

Ibaraki

2.4MW¥0.60 billion*Excludes Ecosystem Japan’s EPC projects

12IV-3. Business Expansion Post Solar Development
Areas of Ecological Innovation

Areas of Urban Revitalization Innovation

Areas of Community Revitalization Innovation<Environment and Energy><Nationwide Resilience><Community Development>(1) Solar power generation (in-house mega-solar)(2) Solar construction (private sector mega-solar)• Maintain and strengthen collaboration with qualiﬁed partners

Already
introduced(3) Grey water business• Applying successful projects at corporate buildings toother private sector jobs

(1) Water and sewerage facilities• Receiving orders for large-scale urban projects due tobid entry qualiﬁcation A(2) Removal of utility poles• Continuing to receive orders for construction work utilizing existing underground NTT stock• Removal of 100% of utility poles from core centers ofTokyo (by 2020)——(3) Renovation of Shuto Expressway• Planning large-scale upgrade due to aging(4) Reinforcement of slopes• Based on synergy with Kawanakajima Kensetsu
construction company(1) Wood biomass• Considering entering sector on a scale that makes fuelprocurement easy

Short- tomedium-term(2) Energy Service Company (ESCO) business• Promote business model that spans the entire processfrom energy conservation proposals to recovering beneﬁts(1) Full-scale earthquake reconstruction(1) Tokyo Olympics-related work

• Prompt response to relocating obstructive telecommunication cables, etc.

• Establishment of venues, transportation networks,
accommodation, etc.

(2) Revitalization and upgrading of urban infrastructure(2) Development of area around Shinagawa Station• Long-term infrastructure plans for major cities (forexample, master plans for waterworks maintenancein Tokyo and Osaka)• Utilize land rights to COMSYS Shinagawa Building
to be actively involved in landowner redevelopment
meetings(3) Construction of super mega-solar system• EPC for large-scale generation projects at golf courses, etc.

(1) Geothermal heat pump
• Preparation for on-site verification of actual geothermalheat pump use

Medium- tolong-term(3) Agriculture and ﬁshery-related civil engineering(1) Concession• Creation of roles in relation to the right to operate
public infrastructure, introduced in 2011 revision of
the Act on Promotion of PFI(1) Effective utilization of assets• Propose utilization of idle corporate assets(2) Region creation projects(2) Small-scale geothermal power generation• Implementing joint research with certain universities
aimed at creation of heat collection model(3) Smart cities• Creation of roles in future urban concepts

13

V. M&As for Top Line Expansion

Utilization of treasury stock in M&A for top line expansion
M&A Results for Current Fiscal Year

M&A Plans<Areas of ecological innovation>• Energy business (wood biomass, geothermal)• Geothermal heat pump business

Management integration with Ecosystem Japan— Expanding top line and acquiring electrical engineers
Share exchange with Central Building Services— Acquiring peripheral businessAir conditioning and heating equipment installation companies<Areas of urban revitalization innovation>• Road-related business (utility pole removal, road paving, etc.)• Water and sewerage-related business

Share exchange with Kawanakajima Kensetsu— Expanding business territory and acquiring civil engineers

Road works companies, waterworks companies
Note: Central Building Services and Kawanakajima Kensetsu will not
be consolidated during this fiscal year.

3,450

3,313

<Areas of community revitalization innovation>• Tokyo Olympics-related (establishment of venues, transportation networks, etc.)• Development of area around Shinagawa Station

Air conditioning and electrical equipment installation companies

Plan to proactively expand business areas
compatible with existing operations
Net Sales(Unit: ¥100 million)

Treasury Stock(10,000 shares)

2,831

March 2014
Results

3,198*March 2015
Target* Number of shares of treasury stock as of the end of September 2014
plus 4,700,000 shares of treasury stock (¥8.0 billion) to be obtained
during this fiscal year.

14VI. Policy on Shareholder Returns and Status of Treasury Stock(Unit: ¥100 million)

Planning to acquire ¥8.0 billion in treasury stockin the current fiscal year200

Net Income(Target)

150
100

180

163

132

80

Treasury
Stock

35

Dividends

30
25

40

80

24

29

March 2011

March 2012

March 2013

March 2014

March 2015 (Planned)

Interim

¥10

¥10

¥10

¥10

¥15

Dividends per Share(annual)Year-end

¥10

¥10

¥10

Ordinary dividends: ¥10
Commemorative dividends: ¥5¥15

Consolidated Payout Ratio

27.1%

36.0%

18.7%

18.4%

19.8%

Total Return Ratio
Dividends + treasury stock
Net income

58.3%

77.7%

48.7%

66.9%

64.3%

50

95

30
25

0

71

Use as M&A costs• Central Building Services (140,000 shares)• Kawanakajima Kensetsu (890,000 shares)

Use in implementing
management integration
with TSUKEN Corporation
8.35 million shares

28.31 million shares
23.01 million shares

Acquisitions of Treasury Stock (Year-end)

16.12 million
sharesNewlyacquired¥3 billion

3.61 million
shares¥15

19.18 million shares¥3 billion

3.52 million
shares¥4 billion¥8 billion

5.83 million
shares4.70 million
Plan tosharesacquire¥8.0 billion
worth

4.16 million
shares(September 30, 2014)
Number of shares held
27.28 million shares

Note: Fiscal year-end treasury stock shows
number of shares on consolidated basis.

15

Interim Results for the Fiscal Year Ending March 31, 2015

— Data Book —November 12, 2014

Contents
Detailed Data
1

Consolidated Statements of Income (COMSYS.HD Consolidated)

2Statements of Income for Each Company

3

Orders Received, Net Sales, and Contract Backlogs by Business Area (COMSYS.HD Consolidated)

4

OOrders Received and Net Sales by Detailed Business Area for Five Companies
on a Non-Consolidated Simple Sum Basis (Results and Forecasts)

5

Capital Expenditure, Depreciation and Amortization

Reference
6

Consolidated Balance Sheets (Condensed)

7

Consolidated Cash Flow (Condensed)

Cautionary Statement with Respect to Forward-Looking Statements
Some of the information in this document contains forward-looking statements, which are subject to various risks and uncertainties. As a result, the Company’s actual activities and business results
could differ significantly.
Important factors bearing on the Company’s actual business results include, but are not limited to, changes in the economic environment for the Company’s business domains, social
trends, trends in demand for the services that the Company offers, or downward pressure on prices and fees due to intensifying competition.

Consolidated Statements of Income (COMSYS.HD Consolidated)(Unit: ¥100 million)

Mar. 2014
2Q Results

March 2015
2Q Targets

2Q Results

Comparisons with the Previous Term

March 2015
Comparisons with Forecasts

Difference (d)Percentage
Difference

Difference (e)Percentage
Difference(c) – (a)(d) ⁄ (a)(c) – (b)(e) ⁄ (b)Full Year
Targets

Progress Rate(f)(c) ⁄ (f)

(a)

(b)

(c)

Orders Received

1,607

1,650

1,735

127

7.9%

85

5.2%

3,490

49.7%

Net Sales

1,405

1,490

1,442

37

2.6%

-47

-3.2%

3,450

41.8%

Gross Profits

193

220

214

21

11.0%

-5

-2.6%

515

41.6%

(13.7%)(14.8%)(14.9%)

1.2 p.p.

Selling, General and Administrative Expenses

86

110

102

16

18.6%

-7

-6.5%

225

45.7%

Operating Income

106

110

111

5

4.9%

1

1.3%

290

38.4%

(7.6%)(7.4%)(7.7%)

0.1 p.p.

109

112

113

3

(7.8%)(7.5%)(7.8%)

0.0 p.p.

61

68

68

7

(4.4%)(4.6%)(4.8%)

0.4 p.p.

(Gross Profit Margin)(Operating Margin)
Recurring Profit(Recurring Profit Margin)
Net Income(Net Profit Margin)(14.9%)

0.1 p.p.

(8.4%)

0.3 p.p.
3.1%

1

1.0%

0
0.2 p.p.

38.3%(8.6%)

0.3 p.p.
11.4%

295

1.0%

180

38.1%

(5.2%)

Notes: 1. Figures are rounded down to the nearest whole unit. Profit margin, increase and decrease, and progress percentage data are calculated using a base unit of yen. Figures are rounded to the nearest first decimal place.
2. p.p. = percentage points

1Statements of Income for Each Company(Unit: ¥100 million)

COMSYS-G

Comparisons with the Previous Term

SANCOM-G

TOSYS-G

TSUKEN-G

Mar. 2014
2Q Results

Mar. 2015
2Q Results

Difference

Mar. 2014
2Q Results

Mar. 2015
2Q Results

Difference

Mar. 2014
2Q Results

Mar. 2015
2Q Results

Difference

Mar. 2014
2Q Results

Mar. 2015
2Q Results

Difference

1,018

1,098

80

276

308

32

147

146

-0

198

212

14

Net Sales

871

923

52

258

257

-0

127

120

-7

179

170

-9

Gross Profits

130.1

151.5

21.3

25.5

29.9

4.4

8.7

7.1

-1.5

20.0

19.5

-0.5

(14.9%)(16.4%)

1.5 p.p.

(9.9%)(11.6%)

1.7 p.p.

(6.8%)(6.0%)-0.8 p.p.

(11.2%)(11.5%)

0.3 p.p.

Selling, General and Administrative Expenses

48.4

67.9

19.5

12.8

12.2

-0.6

6.8

6.5

-0.3

13.8

11.8

-1.9

Operating Income

81.7

83.5

1.7

12.6

17.7

5.0

1.8

0.6

-1.1

6.2

7.6

1.4

(Operating Margin)(9.4%)(9.0%)-0.4 p.p.

(4.9%)(6.9%)

2.0 p.p.

(1.5%)(0.6%)-0.9 p.p.

(3.5%)(4.5%)

1.0 p.p.

85.6

84.9

17.7

0.8

7.9

(4.8%)(6.9%)(1.6%)(0.7%)-1.1-0.9 p.p.

6.5(9.2%)

5.2
2.1 p.p.

2.0(9.8%)-0.7-0.6 p.p.

12.5(Recurring Profit Margin)(3.7%)(4.7%)

1.3
1.0 p.p.

52.6

51.5

-1.1

7.4

10.9

3.5

1.8

0.3

-1.4

-1.4

4.9

6.4

(6.0%)(5.6%)-0.4 p.p.

(2.9%)(4.2%)

1.3 p.p.

(1.4%)(0.3%)-1.1 p.p.

(-0.8%)(2.9%)

3.7 p.p.

Orders Received(Gross Profit Margin)

Recurring Profit
Net Income(Net Profit Margin)(Unit: ¥100 million)

COMSYS-G

Comparisons with Forecasts for the Full YearSANCOM-G

TOSYS-G

TSUKEN-G

Mar. 2015 Mar. 2015
Mar. 2015 Mar. 2015
Mar. 2015 Mar. 2015
Mar. 2015 Mar. 2015
Full Year Targets 2Q Results Progress Rate Full Year Targets 2Q Results Progress Rate Full Year Targets 2Q Results Progress Rate Full Year Targets 2Q Results Progress Rate

Orders Received

2,275

1,098

48.3%

600

308

51.4%

270

146

54.2%

390

212

54.5%

Net Sales

2,230

923

41.4%

594

257

43.4%

274

120

43.8%

400

170

42.6%

Gross Profits

358

151.5

42.3%

67

29.9

44.6%

23

7.1

30.2%

47

19.5

41.5%

(16.1%)(16.4%)(11.3%)(11.6%)(8.7%)(6.0%)(11.8%)(11.5%)

Selling, General and Administrative Expenses

145

67.9

46.9%

26

12.2

46.7%

13

6.5

47.2%

26

11.8

44.8%

Operating Income

213

83.5

39.2%

41

17.7

43.3%

10

0.6

6.7%

20

7.6

37.3%

(9.6%)(9.0%)(6.9%)(6.9%)(3.6%)(0.6%)(5.1%)(4.5%)(Gross Profit Margin)(Operating Margin)

Notes: 1. Figures are rounded down to the nearest whole unit. Profit margin and progress percentage data are calculated using a base unit of yen. Figures are rounded to the nearest first decimal place.
2. Business transactions between operating groups have not been eliminated.
3. p.p. = percentage points

2Orders Received, Net Sales, and Contract Backlogs by Business Area (COMSYS.HD Consolidated)(Unit: ¥100 million)

Orders Received

March 2014

March 2015

(Six months ended September 30)

Comparisons with the Previous Term
2Q Results

2Q Targets

2Q Results
Difference (d)Business Area(a)

NTT Engineering
NCC Engineering
IT Solutions
Social System-Related and Other
Total

Net Sales

(b)

(c)

(c) – (a)

884
197
291
362

-47
14
4
155

-5.1%
7.9%
1.6%
75.4%

24
32
11
17

2.8%
19.4%
4.0%
5.1%

1,607

1,650

1,735

127

7.9%

85

5.2%

March 2015
Comparisons with the Previous Term

2Q Results

2Q Targets

2Q Results
Difference (d)(a)

NCC Engineering
IT Solutions
Social System-Related and Other
Total

Contract Backlogs(c) – (b)Percentage
Difference(e) ⁄ (b)

860
165
280
345

March 2014

NTT Engineering

Difference (e)

931
182
286
206

(Six months ended September 30)

Business Area

Percentage
Difference(d) ⁄ (a)Comparisons with Forecasts

(b)

(c)

(c) – (a)Percentage
Difference(d) ⁄ (a)Comparisons with Forecasts
Difference (e)(c) – (b)Percentage
Difference(e) ⁄ (b)

853
198
204
149

835
160
230
265

837
174
197
233

-15
-24
-6
83

-1.9%
-12.1%
-3.3%
56.1%

2
14
-32
-31

0.3%
8.9%
-14.0%-11.9%

1,405

1,490

1,442

37

2.6%

-47

-3.2%

March 2014

March 2015
Comparisons with the Previous Term

2Q Results

2Q Results
Difference (d)Business Area
NTT Engineering
NCC Engineering
IT Solutions
Social System-Related and Other
Total

(a)

(c)

(c) – (a)Percentage
Difference(d) ⁄ (a)

634
101
182
214

593
84
198
313

-41
-17
16
99

-6.5%
-17.1%
8.9%
46.2%

1,133

1,190

56

5.0%

Note: Figures are rounded down to the nearest whole unit. Percentages of increase and decrease are calculated using a base unit of yen. Figures are rounded to the nearest first decimal place.

3Orders Received and Net Sales by Detailed Business Area for
Five Companies on a Non-Consolidated Simple Sum Basis (Results and Forecasts)(Unit: ¥100 million)
March 2014

Orders Received

March 2015

(Six months ended September 30)

Comparisons with the Previous Term
2Q Results(a)Business Area

(b)

478
116
317
912
183
231
127
1,454

AccessNetwork

NTT Engineering

2Q Targets

MobileSubtotal

NCC Engineering
IT Solutions
Social System-Related and Other
Total

2Q Results

(c)

457
95
323
875
198
226
183
1,484

430
85
323
838
166
223
181
1,408

Difference (d)Percentage
Difference

Difference (e)Percentage
Difference(c) – (a)(d) ⁄ (a)(c) – (b)(e) ⁄ (b)Comparisons with the Previous Term
2Q Results(a)AccessNetwork

NTT Engineering

MobileSubtotal

NCC Engineering
IT Solutions
Social System-Related and Other
Total

2Q Targets

(b)

425
102
306
834
199
158
75
1,267

27
10
0
37
32
3
2
76

6.4%
12.0%
0.1%
4.5%
19.3%
1.7%
1.4%
5.4%

March 2015

(Six months ended September 30)

Business Area

-4.3%
-18.4%
1.8%
-4.0%
7.9%
-1.8%
44.1%
2.1%

-20
-21
5
-36
14
-4
56
29

March 2014

Net Sales

Comparisons with Forecasts

2Q Results

(c)

409
90
314
813
161
172
107
1,253

406
98
322
828
175
147
83
1,234

Comparisons with Forecasts

Difference (d)Percentage
Difference

Difference (e)Percentage
Difference(c) – (a)(d) ⁄ (a)(c) – (b)(e) ⁄ (b)

-19
-3
15
-6
-24
-11
8
-33

-4.5%
-3.4%
5.2%
-0.8%
-12.1%
-7.1%
11.5%
-2.6%

-2
8
8
15
14
-24
-23
-18

-0.6%
9.8%
2.7%
1.8%
9.0%
-14.3%-21.8%-1.5%

Notes: 1. The non-consolidated simple sum data are for the following five companies: Nippon COMSYS Corporation; SANWA COMSYS Engineering Corporation; TOSYS CORPORATION; TSUKEN Corporation;
and COMSYS JOHO SYSTEM Corporation.
2. Figures are rounded down to the nearest whole unit. Percentages of increase and decrease are calculated using a base unit of yen. Figures are rounded to the nearest first decimal place.

4

Capital Expenditure, Depreciation and Amortization(Unit: ¥100 million)
March 2014

March 2015

2Q Results

March 2015

Comparisons with the previous term
Percentage
Difference
difference

2Q Results

Full Year Targets

Progress rate

Tangible Assets

28

21

-7

-25.5%

34

61.8%

Intangible Assets

6

2

-4

-65.1%

14

14.3%

Total

35

23

-11

-33.1%

48

47.9%

Depreciation and Amortization

22

22

0

1.7%

48

45.8%

Capital Expenditure

Note: Figures are rounded down to the nearest whole unit. Percentages of increase and decrease are calculated using a base unit of yen. Figures are rounded to the nearest first decimal place.

5Consolidated Balance Sheets (Condensed)
ASSETSLIABILITIES AND NET ASSETS(Unit: ¥100 million)

2,505

-70

2,434

(Unit: ¥100 million)

2,505

-70

2,434

(-188)

Current
Liabilities(-170)• Cash and cash equivalents

Current Assets• Notes and accounts
receivable—trade• Accumulated cost of constructionin progress and other inventories

+158

637

-399

-113

• Income taxes payable

-48

86

(+11)

74

448

Long-Term
Liabilities

+83

1,564

• Accounts payable—trade

1,394(+105)Net Assets• Retained earnings

+80

1,794
(+99)

Fixed Assets• Intangible fixed assets

940

1,899

• Investments and other assets

As of March 31, 2014

+30
+65

*Equity ratio
From 71.1% to 77.5%

1,040

As of September 30, 2014

As of March 31, 2014

As of September 30, 20146

Consolidated Cash Flow (Condensed)(Unit: ¥100 million)
Cash Flows fromOperating Activities+247• Decrease in receivables—trade• Income before income taxes
and other adjustments
to net income• Increase in inventories• Decrease in payables—trade

Cash Flows from
Investing Activities-57• Acquisitions of property and equipment -34• Acquisition of shares in subsidiaries -25

Cash Flows from
Financing Activities-31-3• Acquisitions of treasury stock• Decrease in short-term borrowings, net -11-17• Cash dividends paid

+419

+111
-80
-153

310

468

Cash and
Cash Equivalents
at End of Year

Cash and
Cash Equivalents
at End of Half Year(As of March 31, 2014)+158(As of September 30, 2014)7

For further information, please contact:

IR Department
Telephone: +81-3-3448-7000 (direct)
Facsimile: +81-3-3448-7001
E-Mail: chd-ir@comsys.co.jp
URL: http://www.comsys-hd.co.jp/