November 6, 2020

COMSYS Holdings Corporation
Consolidated Financial Results for the Second Quarter Ended September 30, 2020
Under Japanese GAAP
Head Office:17-1, Higashigotanda 2-chome, Shinagawa-ku, Tokyo 141-8647, Japan
Stock Exchange Listings: First Section of Tokyo Stock Exchange (Securities code: 1721)
URL:
http://www.comsys-hd.co.jp
Representative:
Takashi Kagaya, President and Representative Director
For Inquiry:
Hidehiko Ozaki, Director and General Manager of Finance & Accounting Department (Telephone:81-3-3448-7000)
Scheduled Filing of Quarterly Securities Report: November 10, 2020
Scheduled Commencement of Dividend Payment: December 3, 2020
Supplementary Materials on Quarterly Results:
Attached
IR Presentation on Quarterly Results:
Scheduled (For Institutional Investors and Analysts)
Amounts less than one million yen have been omitted.

1. Consolidated Financial Results (for the six months ended September 30, 2020)(1) Consolidated Operating Results(Millions of yen, except per share data and percentages)

Net Sales

Operating Profit

Profit Attributable toOwners of Parent

Ordinary Profit

Six months ended September 30, 2020

¥234,262(3.6)%¥12,402(4.3)%¥12,934(5.1)%¥8,9340.9%

Six months ended September 30, 2019

243,024

36.6

12,95918.1

13,631

21.4

8,855

24.2

Notes: 1. Comprehensive income: Six months ended September 30, 2020: ¥10,621 million [24.3%]
Six months ended September 30, 2019: ¥8,542 million [8.5%]
2. Percentages indicate the percentage change from the corresponding period of the previous fiscal year.

Primary Earnings per Share

Diluted Earnings per ShareSix months ended September 30, 2020

¥70.59¥70.44Six months ended September 30, 2019

68.79

68.61

(2) Consolidated Financial Position(Millions of yen, except percentages)

Total Assets

Net Assets

Equity Ratio

As of September 30, 2020

¥429,184¥314,314

72.5%

As of March 31, 2020

450,043

310,694

68.3(Reference) Shareholders’ Equity:

As of September 30, 2020: ¥311,168 million

As of March 31, 2020: ¥307,553 million

2. Cash Dividends for Shareholders of Common Stock(Yen)

Cash Dividends per Share over the Fiscal YearEnd of 1st QuarterEnd of 2nd QuarterEnd of 3rd Quarter

Year ended March 31, 2020¥ —¥35.00¥ —¥40.00¥75.00Year ending March 31, 2021

—

40.00
—

45.00

85.00

Year ending March 31, 2021 (Forecast)Year-End

AnnualNote: Most recently announced revisions to dividend forecast: Yes*
*For details, please see our notice concerning revision of dividend forecast for the fiscal year ending March 31, 2021 published November 6, 2020. (Available in Japanese only.)

3. Consolidated Earnings Forecast (for the fiscal year ending March 31, 2021)
Net SalesYear ending March 31, 2021

¥560,000(0.2)%(Millions of yen, except per share data and percentages)

Operating Profit

Ordinary Profit¥38,000¥38,500(2.4)%

Notes: 1. Most recently announced revisions to consolidated earnings forecast: No
2. For fiscal-year figures, percentages indicate the percentage change from the previous fiscal year.

(3.9)%

Profit Attributable to Primary Earnings
Owners of Parentper Share¥25,500(1.9)%¥201.05

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Second Quarter Ended September 30, 2020

*Notes:(1) Changes in significant subsidiaries during the period under review (changes to subsidiaries that would alter the scope ofconsolidation): No(2) Adoption of accounting methods specific to quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates and restatements of prior period financial statements
due to error correctiona) Changes in accounting policies due to revisions of accounting standards: Nob) Changes in accounting policies due to other reasons: Noc) Changes in accounting estimates: Nod) Restatements of prior period financial statements due to error correction: No(4) Number of shares issued (common stock)		
a) Number of shares issued (including treasury stock)b) Number of treasury stock		c) Average number of shares issued in the period

As of September 30, 2020
141,000,000 shares
14,972,612 shares

As of March 31, 2020
141,000,000 shares
14,164,947 shares

Six months ended September 30, 2020
126,559,675 shares

Six months ended September 30, 2019
128,737,967 shares*This Quarterly Consolidated Financial Results report has not been subjected to quarterly review proceduresby certified public accountants or an audit corporation.
*Disclaimer concerning the Proper Use of Business Results Forecasts and Other Relevant Specific Items
Forward-looking statements including earnings forecasts contained in this document are based on certain reasonable assumptions and beliefs inlight of information currently available to management. Readers are advised that actual results may differ materially from forecasts due to a varietyof factors. With respect to the conditions that underpin earnings forecasts as well as cautionary statements regarding the proper use of earnings
forecasts, please refer to “(3) Discussion of Forward-Looking Information, including Consolidated Earnings Forecasts” under “1. Qualitative
Information Regarding Consolidated Financial Results for the Period under Review” of this Consolidated Financial Results report in theAccompanying Materials section on page 3.

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COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Second Quarter Ended September 30, 2020

Accompanying Materials
1. Qualitative Information Regarding Consolidated Financial Results for the Period under Review(1) Discussion of Operating Results
During the cumulative second quarter (April 1, 2020 to September 30, 2020) of the current fiscal year ending March 31,
2021, the Japanese economy continued to face challenging conditions due to the impact of COVID-19. Although the levelof social and economic activities has been gradually increasing while infection control measures are being taken and someareas are showing signs of recovery, the business outlook is expected to remain uncertain. It will be necessary to monitor
infection trends and turbulence in financial and capital markets in Japan and overseas.
As for the business environment surrounding the COMSYS Group, in the information and communications field,
there is an urgent need for the development of high-speed, high -volume telecommunications infrastructure to supportsociety-wide digitization, while network construction and enhancement is being implemented, including the installation ofbase stations for 5G services and the development of optical fiber networks. In the public and private sectors, social
infrastructure investment is expected to grow. This includes investment in developing the ICT environment, such as the useof data in distance education and the medical and healthcare sectors and various data collaborations among localgovernments. Investment is also expected to increase in the strengthening of disaster prevention and mitigation measures inresponse to increasingly severe and frequent natural disasters, measures to address the aging of public infrastructure such as
roads and bridges, and renewable energy policies aimed at a decarbonized society.
The COMSYS Group worked to strengthen the construction capability in order to respond to the development ofcommunications infrastructure, including 5G. Also, through Group-wide sales collaboration utilizing the virtual company
structure, the Group strengthened sales activities and expanded its business domains in the IT Solutions segment, such as
GIGA School initiatives, and the renewable energy segment, including solar and biomass. Going forward, the Group will
accelerate the structural reform aimed at total group-wide optimization leveraging digital transformation (DX) and othermeans.
Under these circumstances, although there were fewer opportunities to obtain orders due to a decrease in social andeconomic activities and prolonged construction periods caused by temporary restrictions on entry to construction sites and delays
in deliveries of construction materials due to COVID-19, the COMSYS Group, including its affiliates, continued its businessactivities with full consideration for the health of employees and infection control, and business performance gradually improved in
the latter part of the period as the impact of COVID-19 decreased. As a result, orders received in the cumulative second quarter
period decreased 12.3% year on year to ¥279,520 million, which was partly attributable to the decline from the high level of orders
received in the previous fiscal year, and net sales decreased 3.6% year on year to ¥234,262 million. From a profit perspective,
operating profit decreased by 4.3% year on year to ¥12,402 million, while profit attributable to owners of parent increased 0.9%
year on year to ¥8,934 million.
(2) Discussion of Financial Position
Total assets as of September 30, 2020 amounted to ¥429,184 million, down ¥20,858 million compared with the end of theprevious fiscal year. This was mainly attributable to a decrease in notes receivable, accounts receivable from completed
construction contracts and other. Liabilities decreased by ¥24,479 million compared with the end of the previous fiscal
year, to ¥114,869 million. This was largely attributable to a decrease in notes payable, accounts payable for construction
contracts and other.
Net assets increased by ¥3,620 million compared with the end of the previous fiscal year, to ¥314,314 million.
This was primarily the result of an increase in retained earnings due to profit attributable to owners of parent and thepurchase of treasury stock.
In accordance with each of the aforementioned factors, the equity ratio stood at 72.5%, compared with 68.3% at
the end of the previous fiscal year.
(3) Discussion of Forward-Looking Information, including Consolidated Earnings Forecasts
There are no changes in the consolidated earnings forecast for the full fiscal year ending March 31, 2021 published in“COMSYS Holdings Announces Revision to Earnings Forecast” dated May 13, 2020.
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COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Second Quarter Ended September 30, 2020

2. Quarterly Consolidated Financial Statements(1) Consolidated Balance Sheets
Millions of yen
As of March 31, 2020

ASSETS		 Current assets:			 Cash and deposits
35,992			 Notes receivable, accounts receivable			from completed construction contracts and other
177,267			 Inventories:				 Costs on construction contracts in progress
26,070				 Other
5,787			 Other current assets
12,097			 Allowance for doubtful accounts(135)			 Total current assets
257,080		 Non-current assets:			 Property, plant and equipment:				 Buildings and structures, net
42,683				 Land
67,285				 Other, net
28,644				 Total property, plant and equipment
138,612			 Intangible assets						 Goodwill
3,902				 Other intangible assets
3,940				 Total intangible assets
7,842			 Investments and other assets:				 Investment securities
26,084				 Other assets
20,774				 Allowance for doubtful accounts(352)				 Total investments and other assets
46,507			 Total non-current assets
192,962		 Total assets
450,043

4

As of September 30, 2020

48,827122,201
41,985
6,578
15,006(163)
234,436

42,261
67,921
29,877140,060
3,614
4,001
7,615
27,195
20,246(370)
47,071
194,747
429,184

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Second Quarter Ended September 30, 2020

Millions of yen

LIABILITIES		 Current liabilities:			 Notes payable, accounts payable			for construction contracts and other			 Short-term borrowings			 Income taxes payable			 Advances received on construction contracts in progress			 Allowances			 Other current liabilities			 Total current liabilities		 Non-current liabilities:			 Long-term borrowings			 Deferred tax liabilities for land revaluation			 Retirement benefit liability			 Provision for retirement benefits for directors (and other officers)			 Other long-term liabilities			 Total non-current liabilities		 Total liabilities
NET ASSETS		 Shareholders’ equity:			 Share capital			 Capital surplus			 Retained earnings			 Treasury shares			 Total shareholders’ equity		 Accumulated other comprehensive income:			 Valuation difference on available-for-sale securities			 Deferred gains or losses on hedges			 Revaluation reserve for land			 Remeasurements of defined benefit plans			 Total accumulated other comprehensive income		 Share acquisition rights		 Non-controlling interests		 Total net assets
Total liabilities and net assets

5

As of March 31, 2020

As of September 30, 2020

80,289
7,038
5,318
5,097
963
19,335
118,042

60,278
5,720
3,688
9,217
842
13,63893,386

1,107
1,315
14,123587
4,173
21,307
139,349

905
1,348
14,287560
4,382
21,483
114,869

10,00092,203241,033(27,125)
316,111

10,00092,336245,433(29,785)
317,983

1,264(12)(8,028)(1,780)(8,557)652
2,487
310,694
450,0432,878(44)(8,028)(1,620)(6,814)706
2,439
314,314429,184

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Second Quarter Ended September 30, 2020

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income		
Millions of yen
Six months ended		Six months ended
September 30, 2019		
September 30, 2020

Net sales
Cost of sales
Gross profits
Selling, general and administrative expenses
Operating profit
Non-operating income:		 Interest income		 Dividend income		 Rental income from non-current assets		 Other		 Total non-operating income
Non-operating expenses:		 Interest expenses		 Rent expenses		 COVID-19 related expenses		 Other		 Total non-operating expenses
Ordinary profit
Extraordinary income:		 Gain on sales of investment securities		 Gain on sales of non-current assets		 Gain on transfer of business		 Compensation income		 Other		 Total extraordinary income
Extraordinary losses:		 Loss on retirement of non-current assets		 Special retirement expenses		 Impairment loss		 Other		 Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

6

243,024
212,630
30,393
17,434
12,959234,262205,351
28,91016,50812,402

13
429
164
217
824

11
513
148
231
904

27
92
—
31
152
13,631

18
80
192
81
372
12,934

39
23
—
84
13
161

681
6
273
6
72
1,039

28
70
—
54
152
13,640
4,722
8,918
62
8,855

14
50
78
66
209
13,763
4,894
8,869
(64)
8,934

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Second Quarter Ended September 30, 2020

Consolidated Statements of Comprehensive Income
Millions of yen
Six months ended
Six months ended
September 30, 2019
September 30, 2020

ProfitOther comprehensive income:			 Valuation difference on available-for-sale securities			 Deferred gains or losses on hedges			 Remeasurements of defined benefit plans			 Total other comprehensive income (loss)
Comprehensive income		 (Breakdown)			 Comprehensive income attributable to owners of parent			 Comprehensive income (loss) attributable to non-controlling interests

7

8,918

8,869(344)
0(31)
(375)
8,542

1,624
(32)
160
1,752
10,6218,478
64

10,676(54)COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Second Quarter Ended September 30, 2020

(Significant Subsequent Event)Acquisition of Treasury Stock
The meeting of the Board of Directors held on November 6, 2020 resolved as follows on the matters related to theacquisition of treasury stock in accordance with Article 156 of Japan’s Companies Act, as applied pursuant to paragraph 3,Article 165 of the Act.
(1) Reason for Purchase of Treasury Shares
The Company will acquire treasury stock in order to facilitate enhancement of shareholder returns and the execution offlexible capital policies that respond to changes in the corporate environment.
(2) Details of Matter Related to the Acquisition
1) Type of Shares to be Acquired2) Total Number of Shares to be Acquired3) Total Acquisition Price
4) Acquisition Period5) Method of Acquisition

Common shares of the Company
Up to 2,000,000 shares
Up to ¥4,000,000,000
From November 9, 2020 to March 31, 2021
Market purchase on the Tokyo Stock Exchange8