Presentation of Performance for the First Half
Fiscal Year Ending March 31, 2023

November 16, 2022

Contents
I. Overview of Performance for the First Halfof the Fiscal Year Ending March 31, 2023
1. Highlights of Financial Statements for the First Half

・・・・・・・・・

4

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

・・・・・・・・・

5

3. Details of Net Sales by Segment for the First Half

・・・・・・・・・

6

4. Details of Operating Profit for the First Half

・・・・・・・・・

7・・・・・・・・・

8・・・・・・・・・

10

2. Trends in NTT Fixed-Line Related Business・・・・・・・・・

11

3. Trends in NTT Mobile Business・・・・・・・・・

12

4. Trends in NCC Business・・・・・・・・・

13

5. Trends in IT Solutions Business・・・・・・・・・

14

6. Trends in Social System-Related Business・・・・・・・・・

15・・・・・・・・・

16・・・・・・・・・

18

5. Status of Contract Backlogs for the First Half
II. Full-Year Business Forecasts
for the Fiscal Year Ending March 31, 2023
1. Review of Full-Year Business Targets for the Fiscal Year Ending March 31, 2023

7. Promotion of Digital Transformation
III. Shareholder Returns Policy
1. Shareholder Returns Policy(Dividends and Acquisition of Treasury Shares)

I. Overview of Performance for the First Halfof the Fiscal Year Ending March 31, 2023

I-1. Highlights of Financial Statements for the First Half
Net sales and operating profit decreased year on year due to a decline
from the high levels of previous year and supply constraints for parts and materials.
• Orders received decreased year on year due to a decline in the NTT (mobile) business, despite higher orders received
in the NCC Engineering and IT Solutions businesses.
• Net sales decreased year on year, due to a decline in the NTT Engineering and Social System-Related businesses, despite strong sales
in the NCC Engineering and IT Solutions businesses.
• Operating profit decreased year on year, due to the decrease in net sales and the soaring price of raw materials, despite efforts to improve productivity.

FY March 2023
1H Performance

Comparisons withthe Previous Term

Orders Received

2,678-46

Net Sales

2,308-228

Operating Profit

94-86

Operating Margin

4.1%-3.0 p.p.

(Unit: ¥100 million)

Note: p.p. = percentage points

4I-2. Details of Orders Received by Segment for the First HalfOrders received decreased year on year with a decline in the NTT business,despite strong orders received in the IT business.
• NTT Engineering Business: Orders received decreased year on year due to lower orders in the mobile business, even as the decline from the previous year’shigh level of high-speed wireless-related orders was offset by various maintenance operations.
• NCC Engineering Business: Orders received increased year on year as orders remained strong due to active base station construction
by telecommunications carriers.
• IT Solutions Business: Orders received increased year on year due to orders for large-scale public sector projects and greater collaboration
with alliance partners.
• Social System-Related Business: Orders received remained flat year on year as the effect of newly consolidated subsidiary FUJIKI Corporation offset
the decline in orders received for electric facilities and communication-related construction.

FY March 2023
1H Performance

Comparisons withthe Previous Term

NTT Engineering

1,093-118

NCC Engineering

255+6

IT Solutions

564+63Social SystemRelated and Other

765+1(Unit: ¥100 million)5I-3. Details of Net Sales by Segment for the First HalfAlthough sales increased year on year in the NCC Engineering and IT Solutions businesses,
sales decreased in the NTT Engineering and Social Systems-Related businesses.
• NTT Engineering Business: Sales decreased year on year due to the decline from the previous year’s high level of high-speed wireless-related sales and thedecrease in sales volume in the mobile business (5G construction).
• NCC Engineering Business: Sales increased year on year due to 5G base state construction by KDDI and SoftBank
and an expansion of Rakuten Mobile service area.
• IT Solutions Business: Sales increased year on year due to steady completion of order backlogs despite the impact of semiconductor shortages.
• Social System-Related Business: Sales decreased year on year due the decline from the high level of large-scale solar project sales recordedin the previous fiscal year and delays in the progress of construction.

FY March 2023
1H Performance

Comparisons with
the Previous TermNTT Engineering976-130

NCC Engineering

250+30IT Solutions

413+12Social SystemRelated and Other667-140(Unit: ¥100 million)6I-4. Details of Operating Profit for the First Half
Operating profit fell year on year due to the decrease in net sales and other factors,
despite efforts to improve productivity.
• Despite efforts to complete projects ahead of schedule and improve productivity, operating profit decreased, impacted
by the decrease in sales in the NTT Engineering and Social Systems-Related businesses.
• The gross profit margin deteriorated due to soaring raw material prices and other factors.
• SG&A expenses increased due to the effect of the consolidation of FUJIKI Corporation.

Net sales
decrease-34(Unit: ¥100 million)

Deterioration ingross profit margin-44

180

Increase inSG&A expenses-718094FY March 2022
1H Performance

FY March 2023
1H Performance7I-5. Status of Contract Backlogs for the First Half
Contract backlog increased year on year in the IT business,but decreased year on year in the NTT business.
• NTT Engineering Business: Contract backlog decreased year on year due to the decline from the previous year’s level of high-speed wireless orders
and the decrease of orders in the mobile business (5G construction).
• NCC Engineering Business: Contract backlog increased year on year due to the continuation of strong orders from telecommunications carriers.
• IT Solutions Business: Contract backlog increased year on year, mainly due to strong orders for large-scale public sector projects.
• Social System-Related Business: Contract backlog decreased year on year due to a decline from the high level of solar projects in the previous fiscal year
and delays in orders received for renewable energy projects.

(Unit: ¥100 million)

2,581
2,129

2,549
2,362
1,032

1,101
SocialSystem-137

2,411
2,042
1,017

-15

405

+70

254
170

174

+3698

815

1,078
1,031

ChangeYear on Year

919
409

ITNCC

236
115

156234142NTT745

914

906

334
171
1,010

Contract backlog Contract backlog
at beginning of 1Q at beginning of 3Q

Contract backlog Contract backlog
at beginning of 1Q at beginning of 3Q

Contract backlog Contract backlog
at beginning of 1Q at beginning of 3Q

FY March 2021

FY March 2022

FY March 2023

-1958

II. Full-Year Business Forecasts
for the Fiscal Year Ending March 31, 2023

II-1. Review of Full-Year Business Targets
for the Fiscal Year Ending March 31, 2023
Orders received, net sales, and operating profit are expected to fall,
and targets have been revised, mainly due to soaring raw material prices
and supply delays for parts and materials due to semiconductor shortages.
FY March 2023
Revised Targets

Change fromInitial Targets

Revised Segment(Unit: ¥100 million)

Orders Received

5,800-100
Social SystemRelated Business5,800-100

Operating Profit

380-20—Operating Margin

6.6%-0.2 p.p.

—Net Sales

Note: p.p. = percentage points

10II-2. Trends in NTT Fixed-Line Related Business
Steady progress in AC business projects and creation of new business opportunities• Despite the decline from the high level of high-speed wireless related projects in the previous fiscal year, the Group will aim to achieve the full-year target
by making the most of an increase in various maintenance operations.
• In the 2H, the Group will endeavor to expand into the system integration (SI) and maintenance fields, and actively pursue other new business opportunities.
• The Group will promote greater efficiency through nationwide system integration and consolidation of backyard operations.
Sales of NTT Engineering Business–AC and NW(Simple total of eight companies*)(Unit: ¥100 million)

1,871207

82476

NW

1,664205-48747

ACFirst Half

Full YearNTT Regional Communications Business capex

2,143-13%

First Half Full YearFY March 2022

-1%

4,950

71

1,525

First Half

Full Year Target

FY March 2023

No. of FLET’S Lines Provisioned(Unit: ¥100 million)

258
137

1,863

First Half

776
704

FY March 2022

5,011

1,730-141

Full Year
TargetFY March 2023

-13%

First Half Full YearFY March 2022

260+0%(Unit: 10,000 lines)

118

First Half

Full Year
TargetFY March 2023

[Source: Prepared by COMSYS Holdings based on NTT’s Supplementary Materials to the Financial Results for the Six Months Ended September 30, 2022]* Simple total of eight companies is the sum of net sales of the following eight companies: Nippon COMSYS Corporation; SANWA COMSYS Engineering Corporation; TOSYS Corporation; TSUKEN Corporation; NDS Co., Ltd.; SYSKENCorporation; Hokuriku Denwa Kouji Co., Ltd.; and COMSYS JOHO SYSTEM Corporation.

11

II-3. Trends in NTT Mobile Business
The COMSYS Group will aim to achieve the full-year targets
by stabilizing operations and enhancing efficiency.
• DOCOMO is accelerating 5G expansion to 90% population coverage.
• The COMSYS Group will aim to achieve the full-year targets by ensuring completion of processes concentrated in the 2H through stabilizing
and bringing forward operations.
• The COMSYS Group will maximize earnings for the mobile business overall, including NCC, by mobilizing human resources.
Sales of NTT Engineering business–MB(Simple total of eight companies)(Unit: ¥100 million)

582
260
First Half-74

Full YearFY March 2022

NTT DOCOMO Communications Capex(Unit: ¥100 million)

5,243
*

2,310-14%

First Half Full YearFY March 2022

-0%-122460
186

First Half Full Year Target

FY March 2023

Status of NTT DOCOMO
March 2024 Aim to achieve 90% 5G population coverage

5,210

1,985
First Half Full Year Target

FY March 2023

* Figures for 1H FY March 2022 classified into new segments
Source: Prepared by COMSYS Holdings based on NTT’s Supplementary Materials
to the Financial Results for the Six Months Ended September 30, 2022
Source: NTT DOCOMO news release materials(COMSYS Holdings translation of Japanese websites for readers’ convenience)https://www.docomo.ne.jp/info/news_release/2022/03/11_02.html

12II-4. Trends in NCC Business
Orders received and net sales grew due to active constructionof base stations by each company and other factors.
• The COMSYS Group will aim to achieve further growth of orders received and net sales by effectively utilizing the Group’s mobile specialists.
• The Group will endeavor to capture new business opportunities, such as 3G and PHS removal work, which will contribute to the growthof orders received and net sales.
• The Group will engage in aggressive sales activities to expand its business territory to infrastructure sharing companies and others.

Consolidated Sales of NCC Engineering Business

530560+29

Status of KDDI(Unit: ¥100 million)

Satellite Growth Strategy
5G-driven evolution of the telecommunications business andexpansion of focus areas with telecommunications at the core
LX220+30250

SpaceDX
5G
Communications

Education

Mobility

EnergyFinance
Regional
co-creation

Healthcare-CATV, etc.-First HalfFull YearFY March 2022

First Half Full Year Target

FY March 2023

Source: New Mid-Term Management Strategy (March FY23–March FY25),
presentation materials published May 2022, KDDI CORPORATION

Status of Rakuten Mobile

Status of SoftBank

June 2022 Achieved 97.6% 4G population coverage

Concentrate FY2022 investment in 5G* Subject to delivery status of equipment for base station construction

Source: CEO Presentation Materials for Q2 of FY2022, Rakuten Group, Inc.

Source: Softbank Corp, financial results briefing on the FY ended March 31, 202213

II-5. Trends in IT Solutions Business
Drive achievement of full-year targets as key growth business segment• The COMSYS Group will aim to increase sales by expanding sales activities, despite the remaining impact of semiconductor shortages and yen depreciation.
• The Group will grow recurring business and further strengthen approaches to public sector and education projects in strong need of digital transformation.
• The Group will expand its business by further strengthening integrated Group management and making effective use of Group resources.
Consolidated Sales of IT Solutions Business■ Software development■ Solutions■ Maintenance

1,140+126

1,013

324

307

401
139
227
34
First Half

+1263867
Full YearFY March 2022

413
147
232
33

First Half

SoftwareDevelopmentSolutionsl Development of environment for integrated IT systems of
public agencies
l Cybersecurity introductionl Construction of storage and processing infrastructure forinformation and data of medical research centersl Local government information security cloud renewal

74570
Full Year Target

FY March 2023

Main orders received in each sectorl Development of smartphone service operation data platform
and monitoring automationl AI image diagnostics for power distribution facilities of electric
power companies
l Update of healthcare center imaging and screening systems(Unit: ¥100 million)

Initiatives in IT Solutions BusinessNew business
Developmentl Expansion of recurring revenue business(managed services, maintenance and operation areas)l Introduction of cloud computing/construction of hybrid
environments for public and private systemsl AI, IoT, L5G, and smart city projects

Strengthening
Infrastructurel Integration of Tokyo metropolitan area sales and construction
organizations (IT platform + software development)l Development of advanced engineers for sales with consultation,
cloud computing, agile development, etc.
l Effective leveraging of telecommunications carrier-related andother COMSYS Holdings resources14II-6. Trends in Social System-Related Business
Revising full-year targets as external factor risks become evident in renewable energy business• In the infrastructure and other sector, the COMSYS Group plans active participation in undergrounding of utility poles, water supply and sewerage,
and river basin flood prevention work.
• In the renewable energy sector, targets have been revised downward, and the COMSYS Group will proceed while conducting careful assessments of supply delays,
soaring parts and material prices and other risk factors.
• In the electric facilities and communication sector, the COMSYS Group will focus on expanding areas related to expressway and Ministry of Defense facilities
and developing the data center (DC) project business.
Consolidated Sales of Social System-Related Business

1,847■Infrastructure and Other■Renewable Energy■Electric Facilities

1,029

808
469

249
146348First Half Full YearFY March 2022

Main orders received in each sector

Infrastructureand Otherl Nagoya City sewerage construction projectl Chikumagawa River improvement project

RenewableEnergyl Solar power plant constructionl Hydrogen pipeline POC testingElectricFacilitiesl Expressway electric and communication facilities constructionl Haneda Airport perimeter security facilities construction

667
426
116
124

369

269
412

(Unit: ¥100 million)

1,187

1,187-140412

1,970

1,870

+23-100

First Half RevisedTargets

FY March 2023

412
InitialTargets

Initiatives in Social System-Related BusinessNew business
Developmentl Focusing on developing projects with new businessmodels (PFI, DC, construction of electric facilities)l M&A

Strengthening
Infrastructurel Strengthening capabilities to win orders through virtualcompany structurel Developing managing engineers and multi-skilledengineersl Improving productivity by promoting digital transformation15

II-7. Promotion of Digital Transformation
Promote operational consolidation and improvement using common IT platform• The COMSYS Group will promote consolidation of backyard operations using common IT systems throughout the Group.
• The Group will accommodate diverse work styles by making telework a regular work style option to increase motivation and utilize diverse human resources.
• The Group will promote further operational improvements by generating new ideas based on thorough data visualization and benchmarking.

Goals

FY2023

FY2022

FY2021
To DateFutureGroup Optimization

Develop Common System Platform
Completed standardizationof mobile systems

Standardized business systems

Standardized accounting systems

Completed standardizationof fixed-line systems

Completed standardization ofaccounting systems• Increase productivity byconsolidating backyard
operations, etc.

Introduce human resources development system

Support for diverse
work styles

Making Telework Common Work Style Option
Automation and labor savings (utilization of RPA)
Remote access
Expanding communication tools• Increase employee motivation
and utilize diverse humanresources by supporting
diverse work styles

Developing paperless operations

Utilization ofdata

Use of Data
Data visualization and benchmarking
Promotion of PDCA cycle• Promotion of further operational
improvements by proposing
data-based ideas

16III. Shareholder Returns Policy

III-1. Shareholder Returns Policy(Dividends and Acquisition of Treasury Shares)
Additional ¥2.0 billion acquisition of treasury shares to achieve a target total return ratio of 70%.
ProfitTotal Dividends(Unit: ¥100 million)

203 8058Dividends
Per Share

Purchase of Treasury Shares

280
51

[228]

Profit(Targets)

Negative
Goodwill80
72

259 80293 70292 80

95

106

117

of70 Purchase
Treasury260↑

50SharesTotal

122 Dividends

March 2018

March 2019*

March 2020

March 2021

March 2022

March 2023
(Planned)

Interim

¥25

¥30

¥35

¥40

¥45

¥50

Year-end¥25

￥30

¥40

¥45

¥50

¥5037.0%

36.5%

40.3%

46.7％

67.5%

60.2%

67.5%

73.6％

Consolidated
Payout Ratio

28.0%

Total Return Ratio

26.1%[32.0％]

54.5%

Dividends + treasury shares
Profit67.5%

Number of Sharesof Treasury Sharesat the End of the Period(Ownership Ratio)

26.42

12.29

14.16

15.96

18.57

million shares（18.7%）

million shares(8.7%)

million shares(10.0%)

million shares(11.3%)

million shares

ROE

9.4%

8.6%

9.2%

8.8％

* Figures in [ ] are estimates assuming no negative goodwill.

[66.8％]

10.6%[8.7％]（13.1％）——18

— COMSYS Group Management Philosophy —At the COMSYS Group, we are united as a Group and strive for strong partnership and collaboration with diverse
external players in achieving our management philosophy.
• We will build a company that customers continue to choose through the construction of diverse infrastructure that carries our era forward.
• We will contribute to our country and local communities by building social infrastructure that supports affluent lifestyles.
• We will continue with unrelenting reform in our aim to further increase corporate value.

Cautionary Statement with Respect to Forward-Looking Statements

Forecast figures contained in these presentation materials are forward-looking statements that assume underlying risks and uncertain factors.
Accordingly, it should be recognized that actual results may differ from such forward-looking statements due to a variety of factors.
Important factors that could affect results include, but are not limited to, changes in economic conditions and social trends relevant to the Group’s businessareas, and downward pressure on prices for the services provided by the Group owing to fluctuations in demand and intensified competition.

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: https://www.comsys-hd.co.jp/