Presentation of Performance
Fiscal Year Ended March 31, 2010
May 20, 2010

— Contents —I. Overview of Performance
1. Highlights of Performance for the Fiscal Year Ended March 31, 2010

1

2. Details of Net Sales by Segment for the Fiscal Year Ended March 31, 20102

3. Details of Operating Income for the Fiscal Year Ended March 31, 20103

4. Results of Structural Reform Measures Implemented in the Fiscal Year Ended March 31, 20104

5. Increasing Income through Strategic Investments and Reform of Our Business Structure

5II. Forecasts for the Fiscal Year Ending March 31, 2011
1. Key Factors Underpinning the Forecast of Increased Operating Income
III. Group Company Structural Reform Measures To Be Taken in the Fiscal Year Ending March 31, 2011

678

1. Reviewing Management Systems in Regional Operations

9

2. Measures Aimed at Restructuring Consolidated Subsidiaries

10

IV. Measures Aimed at Expanding New Business Domains

11

V. Management Integration with TSUKEN Corporation

12

1. Benefits Anticipated from Management Integration

13

VI. Status of Treasury Stock and Policies for Returns to Shareholders

14I-1. Highlights of Performance for the Fiscal Year Ended March 31, 2010
Disappointing results due to a deteriorating economic environment(Unit: ¥100 million)
Orders Received

Net Sales

Operating IncomePerformance

2,847
2,930

Comparisons withinitial forecasts

Comparisons withthe previous term

-278-357

Orders Received and Net Sales(-8.9%)(-11.1%)@ Decrease due to the greater than anticipated reduction-270-281(-8.4%)(-8.7%)

125-40-31

4.3%-0.9 percentage points-0.6 percentage points

131-39-40

Topicsin infrastructure investment in the NTT and DOCOMObusinesses@ Decrease in NCC business reflecting au base station
miniaturization and cutbacks in investment by othercarriers@ Decline in the IT solutions and construction businesses
owing to a slump in private-sector market demand@ Performance failed to meet initial forecasts and fell
Operating Margin

Recurring Profit

short of results for the previous period

Income@ Measures implemented under Group Innovation 2010

Recurring Profit Margin

4.5%-0.8 percentage points-0.8 percentage points

Net Income

70-35-30

Net Profit Margin

2.4%-0.9 percentage points-0.7 percentage points–1–and Innovation 2010 had the effect of improving profits.
Results fell below initial forecasts, however, due to thedrop in sales and calls for substantial cost reductions
from our customers.

I-2. Details of Net Sales by Segment for the Fiscal Year Ended March 31, 2010
(Unit: ¥100 million)

NTT businesss %FFECTS OF A DROP IN ACCESS RELATED PROJECTSDOCOMO businesss )MPACT OF A DECLINE IN ORDERS
s AND THE EXTENSION OF CONSTRUCTION PERIODS

NTT-G
-7.7%

3,211-281(-8.7%)-138

3,200-270(-8.4%)-95
NCC-13.4%

NCC
-7.7%

-34

NTT-G
-5.5%

IT
-7.1%

-29

IT
-17.2%
Construction-14.3%
Construction
-6.0%

-80

-81-62s %FFECT OF AU BASE STATION MINIATURIZATIONDECREASE IN UNIT PRICES
s 3TRONG COMPETITION FROM OTHER CARRIERS-322,930

s 3LUMP IN PRIVATE SECTOR MARKET DEMANDAND INVESTMENTs &AILURE TO RECEIVE PRIVATE SECTOR ORDERS FROMMANUFACTURERS AND VENDORSs ,OST OPPORTUNITIES IN THE )25 AND TERRESTRIAL
DIGITAL BROADCASTING BUSINESSES DUE TO POORTIMING AND DELAYS
s 3LUMP IN PRIVATE SECTOR MARKETDEMAND AND INVESTMENTs $ECREASE IN PUBLIC SECTOR INVESTMENTFY March 2009
Performance

FY March 2010
Performance–2–FY March 2010
Initial ForecastI-3. Details of Operating Income for the Fiscal Year Ended March 31, 2010
Structural reform measures had the effect of improving profits,
but were unable to fully offset the substantial decline in net sales
and deterioration in gross profit margins(Unit: ¥100 million)

165

Decrease innet sales-40(-24.0%)-33s $ECREASE IN TELECOMMUNICATION CARRIER CAPITAL INVESTMENTs 3LUMP IN PRIVATE SECTOR MARKET DEMAND AND INVESTMENTs $ECREASE IN PUBLIC SECTOR INVESTMENTDeterioration innDo profit marginsgigross-42-7
Reduction incosts
co as well assSSG&A expensess+35

s $ETERIORATION IN MARKET ENVIRONMENT(Calls from customers for reductions in unit price of contracts and costs, due to intensifying competition)

FY March 2010
Initial Forecast

125s $ECREASE NOT COVERED BY STRUCTURAL
reform and other measures

s /NGOING EFFORTS TO PROMOTE STRUCTURAL REFORM
s 2EDUCTION IN PERSONNEL RELATED COSTS
s #UT BACKS IN SYSTEMS RELATED EXPENSES
s 2EDUCTION IN OPERATING EXPENSESFY March 2010
Performance–3–I-4. Results of Structural Reform Measures Implementedin the Fiscal Year Ended March 31, 2010Impacted by rapid changes in its business environment,
all members of the Group are unified in their commitment toimplementing structural reforms aimed at generating profits“Innovation 2010”“Group Innovation 2010”“Innovation Project 2010”

COMSYSCHD Group

SANCOM

Strengthening project managementby acting as prime contractor

Integration of joint operations

Shifting to a nationwide centralization
structure for network businesses

Extending centralized procurement
throughout the Group

Reviewing the business management structure
in mobile communications projects
Etc.

The building and implementation of Comstar(a new internal system)
Etc.

Improvement in profits: ¥1.4 billion(Target: ¥1.5 billion)-¥0.1 billion

Improvement in profits: ¥1.25 billion(Target: ¥1.4 billion)-¥0.15 billion

Streamlining organization by re-assigning
excess administrative employees as workers
at construction sites
Re-assigning administrative employees
as workers directly involved in growth fields;
reducing temporary employees
Reducing personnel costs and other expenses
at consolidated subsidiaries
Etc.

Profit Improvement Effects: ¥0.4 billion–4–Second half improvement in profits: ¥0.65 billion(Target: ¥0.5 billion)
Note: Additional measures were implemented during the second half.
Accordingly, the above figures are not included in the initial forecast.

I-5. Increasing Income through Strategic Investments
and Reform of Our Business Structure
Negative Impact
Increase in expenses
and a short-term dropin profits

Strategic,Anticipatory Investment

Construction Industry
Structural Reforms

Investment in Systems
Core system (comstar), consolidated subsidiary system (comlink), other
Infrastructure Investments
Business environment improvement (Acquisition of land and buildings
for Techno Stations; consolidating head office functions)
Other Investments
Human resource development, flexible assignment of personnel, restructuringof consolidated subsidiaries, otherGroup Innovation 2010
Group company structural reforms
Growth in revenue and income
Enhancing operational efficiency
Instituting integrated management
Building a joint platform

Synergistic effects through the integrationof various investment measures

Investment in Systems
Expenses: Single FY

Effect: Single FY

Income and expenses: Single FY(Unit: ¥100 million)
Income and expenses: Cumulative

25

Fundamental Concept

Generating
profits overthe medium andlong terms

155

Creating a company that iscapable of generating a continuous
stream of profits-5-15-25

Mar. 2008

Mar. 2009

Mar. 2010

Mar. 2011

Mar. 2012

Infrastructure investments, other investments

Mar. 2013

Mar. 2014(Mar. 2009 – Mar. 2011)

Toda: 40, Hokkaido: 13, Oyamadai: 27, Osaki building: 25
Human resource development through training, the acquisition ofqualifications and other measures; promoting kaizen (improvement), other–5–Mar. 2015

Total
Approximately ¥12.0 billion

II. Forecasts for the Fiscal Year Ending March 31, 2011
Work toward improving profitability by promoting dramatic
structural innovation; target an increase in operating income(Unit: ¥100 million)
Orders Received

Net Sales

FY March 2010
PerformanceComparisons withFY March 2010

FY March 2011
Targets

2,847

2,830-172,930

2,940+10125134+94.3%

4.6%+0.3 percentage points

Recurring Profit

131137+6

Recurring Profit Margin

4.5%4.7%+0.2 percentage points

Net Income

7073+3Net Profit Margin

2.4%2.5%+0.1 percentage points

Operating Income
Operating Margin–6–Remarks

Orders Received and Net Sales
With respect to NTT group businesses, contraction ininfrastructure capital investment continues unabated;
this decrease to be held to an absolute minimum byexpanding peripheral businesses and augmenting thescope of maintenance-related businesses
Will work to expand our NCC business share in both themobile and fixed communications sectors
In the IT solutions and construction businesses, we will
engage in such marketing activities as server, ecology
and environmental business expansion as well as
efforts to bolster IRU and terrestrial digital broadcasting
businesses, with the aim of achieving forecasts

IncomeWe will achieve our profit target by implementing
reform measures at an accelerated pace under “GroupInnovation 2010” as well as the reform measures ofeach Group company

II-1. Key Factors Underpinning the Forecast of
Increased Operating Income
Establish increased profit targets amid a harsh operating environment
through decisive action on dramatic structural reforms(Unit: ¥100 million)

Eliminate negative factors through structural reform benefits
Increase innet sales+2

Change inthe structureof orders-8125

Deterioration ino profit margins
igross-11s $ETERIORATION IN MARKET ENVIRONMENT(Calls from customers for reductions in unit price of contracts and costs, due to intensifying competition)

Improvement inprofit ratios

134+26
Increasein profitss /NGOING EFFORTS TO PROMOTE STRUCTURAL REFORM
s 2EDUCTION IN PERSONNEL RELATED COSTS
s 2EDUCTION IN OPERATING EXPENSESFY March 2011
Targets

FY March 2010
Performance–7–+9

III. Group Company Structural Reform Measures To Be Taken
in the Fiscal Year Ending March 31, 2011
Group Innovation 2010
CHD Group Target: ¥1.0 billion

Innovation 2010

Innovation Project 2010

2nd Round of Reforms

COMJO Renaissance Innovation(COMSYS) Target: ¥0.2 billion(SANCOM) Target: ¥0.4 billion(TOSYS) Target: ¥0.3 billion(COMJO*) Target: ¥0.2 billion

Maximize the effects of measures
Optimize Group management structure

Other Measures
Target: ¥0.5 billion*COMSYS JOHO SYSTEM CorporationTarget: ¥2.6 billion[Group Innovation 2010]
Enhancing operational efficiency s %XTENDING CENTRALIZED PROCUREMENT THROUGHOUT THE 'ROUPs .## BUSINESS )#4 BUSINESS #ONSTRUCTION BUSINESS
Building a comprehensive
business management
structure

Reviewing business management in our regional operations (See details on page 9)
Restructure consolidated subsidiaries (See details on page 10)

Building a joint platforms 3TANDARDIZING OPERATIONAL FLOW AND IMPLEMENTING NEW SYSTEMS AT CONSOLIDATED SUBSIDIARY–8–III-1. Reviewing Management Systems in Regional Operations
Resolve the negative aspects associatedwith maintaining multiple Group company bases in the same region
Concentrate operations to a single dominant company in each region with a robust construction system;
consolidate common management operations at COMSYS Shared Services Corporation

Complete implementation throughout the Hokkaido, Shinetsu and Kyushu areas from April 1, 2010
Consolidate the overlapping operations of construction departments; streamline to facilitate workforce deployment
Increase productivity by standardizing operational flow
Strengthen affiliate management by integrating primary contractor operations
Resolve issues relating to multiple bases by integrating consolidated subsidiaries

Maximize Synergistic Effects
Implement priority area measures during the current period on a nationwide basis(Tohoku, Tokai, Hokuriku, Kansai, Chugoku, Shikoku)–9–III-2. Measures Aimed at Restructuring Consolidated Subsidiaries
Structural reform of the NTT business
Secure the structure and bolster the capacity of primary consolidated subsidiaries in order
to firmly establish a new construction system
Reduce administrative costs by integrating common personnel

Realign primary consolidated subsidiaries involved with Tokyo metropolitan area access-related projects

4 companies

2 companies

Structural reform of the DOCOMO business
Optimally allocate technologies and skills to COMSYS and primary consolidated subsidiaries
Clarify the division of roles between COMSYS and primary consolidated subsidiaries
Lower the construction costs of primary consolidated subsidiaries

Realign two primary consolidated subsidiaries involved with mobile communications,establish a new primary consolidated subsidiary focused on direct-managed construction– 10 –

IV. Measures Aimed at Expanding New Business Domains
Secure and expand profits in existing business domains;adhere strictly to a process of overhead expenses reduction
Undertake investments in tune with the future[Incubation plan for the fiscal year ending March 31, 2011]
Business segment

Taking on challenges in new domains
Take on the challenge of cultivating new residential businesses

NTT Business

Newly cultivate onsite operations, targeting outside service construction and other operators
Set up a COMSYS home-visit support center

Establish an IT management service business

IT Business

Quickly establish a maintenance and management service business by setting up an integrated customer centerand strengthening human resource development

Expand the scope of business in the server business field
Expand business domains in response to the cloud computing era by broadening the scope of customers and markets

Measures to expand the solar power business

Construction
Business

Foster engineers with the aim of increasing orders in the solar power business
Take up the challenge of expanding the environmental business by bolstering ties outside the CompanyMeasures to expand the maintenance business
Secure orders through the development of platform facility management systems targeting CATV operators– 11 –

V. Management Integration with TSUKEN Corporation
Shift in competitive focus by telecommunications carriers
from the upgrade of infrastructure to contents
Gradual decrease in infrastructure capital investment and further increases in calls from customers for cost reductions

Plans to implement management integration through an exchange of shares;
COMSYS Holdings positioned as the parent company and TSUKEN Corporation
as its wholly owned subsidiary[Stock swap ratio CHD 1: TSUKEN 0.4]

Maximize synergies by harnessing the strengths of both companies

TSUKEN
Nationwide construction system in Japan

Outstanding access to construction capabilities in Hokkaido

Network and mobile construction capabilities

IT solutions and construction businesses deeply rooted in the community

IT solutions and software development capabilities

Exceptional results and visibility in Hokkaido– 12 –

V-1. Benefits Anticipated from Management Integration
Business fieldMeasure(1) Business restructure and integration(2) Shared use of construction systems

NTT GroupBusiness(3) Establish a rapid maintenance system(4) Pursue community-oriented negotiations(5) Realign and integrate construction bases

Expand business domains(6) Effective utilization of affiliates(1) Cooperation in software development

IT Business(2) Cooperation among consolidated subsidiaries(3) Cooperation in building systems
and maintenance operations(1) Shared use of core systems

Common(2) Integrated Group purchasing ofconstruction and indirect materials– 13 –

Increase productivity
Reduce expenses

VI. Status of Treasury Stock and Policies for Returns to Shareholders
Utilize treasury stock in implementing management integration with TSUKEN Corporation— Consider the acquisition of treasury stock, taking into account a comprehensive range of factors including the Group’s performance as well as economic and share price trends —20,270 thousand shares

Newly acquired portion
5,250 thousand shares(Approximately ¥5.0 billion)

Use in implementing
management integration
with TSUKEN Corporation

15,027 thousand shares

8,351 thousand shares
Newly acquired portion
4,386 thousand shares(Approximately ¥5.0 billion)

9,370 thousand shares(Planned)
Newly acquired portion
5,544 thousand shares(Approximately ¥5.0 billion)

Scheduled numberof shares held11,919 thousand sharesMar. 2008

Mar. 2009

Mar. 2010

Mar. 2011

Dividends per Share

¥17

¥20

¥20 (Planned)[ Interim ]

¥7

¥20
¥10

¥10

¥10

[ Year-end ]

¥10

¥10

¥10

Consolidated Payout Ratio

20.3%

36.2%

34.4% (Planned)(including a ¥3commemorative dividend)

¥10
26.5%
– 14 –(FY)