Presentation of Performance for the First HalfFiscal Year Ending March 31, 2013
November 16, 2012

— CONTENTS —I. Overview of Performance for the First Half of the Fiscal Year Ending March 31, 2013
1. Highlights of the First Half Financial Statements

1

2. Details of the First Half Orders Received by Business Segment2

3. Details of the First Half Sales by Business Segment

3

4. Details of First Half Operating Income

4

II. Highlights of the Revised Full Year Forecasts for the Fiscal Year Ending March, 20135

III. Business Trends
1. Capital Expenditure Trends at Telecommunications Carriers (1)62. Capital Expenditure Trends at Telecommunications Carriers (2)7

3. Mobile Telecommunications Carrier Business Trends

8

4. Status of New Business Initiatives

9

IV. Maintaining and Deepening Structural Reform (COMSYS WAY)
1. Structural Reform Initiatives and Outcomes10

2. Reorganization of Group Business Management Structure

11

V. Status of Treasury Stock and Policies for Returns to Shareholders12I-1. Highlights of the First Half Financial Statements
Achieved growth in revenues and income, compared withboth the same period of the previous fiscal year and forecasts(Unit: ¥100 million)

PerformanceComparisons withthe previous term

Comparisonswith forecasts

1,6441,322161+198+70+45+244+62+40Gross Profit Margin

12.2%+3.0 percentage points+2.6 percentage points

SG&A Expenses

93.3
67.7

-1.3+47.1+0.3+39.7

5.1%+3.5 percentage points+2.9 percentage points

Recurring Profit

70.9+47.4+40.9

Recurring Profit Margin

5.4%+3.5 percentage points+3.0 percentage points

Net Income

38.1+30.1+24.1

Net Profit Margin

2.9%+2.3 percentage points+1.8 percentage points

Orders Received
Net SalesGross Profits

Operating Income
Operating Margin

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

–1–Topics

Orders Received
There was a slump in capital expenditure during the same
period of the previous fiscal year due to the impact of theGreat East Japan Earthquake, and capital expenditure had
been forecast to remain sluggish during the current fiscalyear. However, orders received showed significantly good
performance compared with both the same period of theprevious fiscal year and the forecasts, thanks to growth inorders received due to aggressive capital expenditure bymobile telecommunications carriers.

Net Sales
Net sales exceeded both the same period of the previous
fiscal year and the forecasts as construction progressedsmoothly because of the increase in contract backlog. This
resulted from the growth in projects carried over from theprevious fiscal year and the rise in orders received thisfiscal year.

IncomeSubstantial growth in income was achieved compared withboth the same period of the previous fiscal year and theforecasts. This was due to greater efficiency accompanying
growth in project volume and the effects of structural reform,
which COMSYS has continued to implement for some time, inaddition to an enhanced product mix.

I-2. Details of the First Half Orders Received by Business Segment(Unit: ¥100 million)

Comparisons withthe Previous Term

Comparisonswith Forecasts+198+244(+13.7%)

Social System-Related
and Other+6.9%
NCC+45.7%

NTT-G
+9.8%

+77

IT+9.7%

Social System-Related
ITand Other
+5.7%
-1.4%

-2+10+22+13(+17.5%)
NCC+38.4%

1,644
Increase inserver-related business

Increase in solar
system construction

Increase in PBX andserver-related business+68

SBM Platinum Band advance orders received
au 2GHz band LTE-related projects

+87

NTT-G
+20.3%+164

SBM Platinum Bandau 2GHz band LTE-related projects

1,446
NTT business
Decrease in earthquake reconstruction projects

NTT business
Increase due to CP mast renewal projects andstandardization orders
DOCOMO business
Increase in LTE-related projects, PDC dismantlingand subway projects, etc.

DOCOMO business
Increase in LTE-related projects, PDC dismantlingand subway projects, etc.

Performance in Previous Term

Performance
–2–

1,400

TargetI-3. Details of the First Half Sales by Business Segment(Unit: ¥100 million)

Comparisons with
the Previous Term

Comparisonswith Forecasts

NCC-5.6%

SocialSystem-Related
and OtherIT-3.3%-0.2%-8-0+70(+5.6%)

NTT-G+11.1%+62
SocialSystem-Related
and Other
IT+7.6%+9.8%-41,322(+4.9%)
NCC-12.1%

NTT-G
+7.1%

+9+17-20+84+55

Slowdown in FTTH projects
in Tokyo metropolitan area
Increase inserver-related business
Lag in timing of projectcompletions

1,260

1,251
NTT business
Decline in service integration projects, increase
due to standardization orders

NTT business
Increase due to equalization orders, including CPmast renewal projects
DOCOMO business
Increase in LTE-related projects, PDC dismantlingand subway projects, etc.

DOCOMO business
Increase in LTE-related projects, PDC dismantlingand subway projects, etc.

Performance in Previous Term

Performance–3–Target

I-4. Details of First Half Operating Income
Substantial income growth due to improvement inefficiency accompanying the increase in the volume of projects(Unit: ¥100 million)

Comparisons with
the Previous Term

Comparisonswith Forecastss /UTCOME OF STRUCTURAL REFORMS #/-393 7!9s 'REATER PROFITABILITY DUE TO IMPROVED EFFICIENCY+47+39(+228.9%)(+142.0%)67)NCREASE DUE TO
IMPROVEDPROFITABILITY/PERATING -ARGIN+34)NCREASE DUE TO
IMPROVEDPROFITABILITY+32)NCREASE DUE TOGROWTH IN NET SALES)NCREASE DUE TOGROWTH IN NET SALES+8+1328/PERATING -ARGIN20/PERATING -ARGINs )NCOME GROWTH DUE TO ENHANCED PRODUCT MIX

Performance in Previous Terms )NCOME GROWTH DUE TO ENHANCED PRODUCT MIX

Performance–4–Target

II. Highlights of the Revised Full Year Forecasts for the Fiscal Year Ending March, 2013
Upward revision in full-year forecasts on back of positive orders received(Unit: ¥100 million)
Orders Received
Net Sales
Gross Profits

Revised Targets

Initial Targets

Difference

3,100
3,060377

2,950
3,000
325+150+60+52

12.3%

10.8%

+1.5 percentage points

Gross Profit Margin

187
190

185
140+2+50

6.2%

4.7%+1.5 percentage points

Recurring Profit

195

144+51

Recurring Profit Margin

6.4%

4.8%+1.6 percentage points

Net Income

11085+25Net Profit Margin

3.6%

2.8%+0.8 percentage points

SG&A Expenses
Operating Income
Operating Margin

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

–5–Topics

Orders Received and Net Sales
Despite slowing during the second half, orders
received are forecast to rise for the full year due to theeffect of advance orders received in the first half andstandardization orders received throughout the year.
Net sales are forecast to increase based on work inprogress during the first half.
(* Please refer to the detailed data attached for revised orders
received and net sales forecasts by business)

IncomeOperating income is forecast to rise by ¥5.0 billion overthe full year. In addition to an increase of approximately¥4.0 billion during the first half, efforts to further
improve productivity, primarily greater efficiency andstructural reform measures, are projected to produce¥1.0 billion during the second half.

III-1. Capital Expenditure Trends at Telecommunications Carriers (1)Source: NTT IR materials

NTT East and West

Source: NTT IR materials

Net Growth in Number of FLET’S Hikari Contracts(Unit: ten thousand lines)
97
Initial: 80
8482(Unit: ¥100 million)
No change to plans

7,796

7,850

7,500

66
3,900

NTT WEST

3,650

3,600Investment infiber optics
2,950

Mar. 2011

Investment infiber optics
3,000

Mar. 2012

NTT WEST

4,200

NTT EAST

NTT EAST

65 65

Investment infiber optics
3,000

Mar. 2013 Target

Mar. 2011

Mar. 2012

Mar. 2013 Target

Note: Net growth in number of new contracts = number of new contracts – number of cancellations

NTT’s consolidated capital expenditure for the current fiscal year has increased by¥30.0 billion from initial plans, to ¥1,950 billion (includes ¥14.0 billion at NTT
DOCOMO).

The number of contracts for FLET’S Hikari, the cornerstone of fixed telecommunications,has increased, but the net increase in the number of contracts is tending to slow
due to the following circumstances (assumptions).

There are no changes in capital expenditure at NTT East and West (including
investment in fiber optics).

(1) Rapid growth of smartphones (LTE, built-in tethering function)(2) Aggressive discounting of optic fiber and smartphone services by KDDI
(3) Emergence of Kansai Electric Power subsidiary (under management of NTT West)NTT East revised net growth target for telephone lines down from 800,000 to 650,000

NTT has announced that the cornerstones of its medium-term management plan are tostrengthen its overseas business (“Global Cloud Vision”) and comprehensively
strengthen network service competitiveness.

NTT East and West are implementing strategy to prevent cancellations of FLET’S Hikaris .INENWARI s &EE REDUCTIONS FOR APARTMENTSs &,%43 (IKARI 7I&I ACCESS FOR SMALL RESIDENTIAL PROPERTIES

Cost reductions of ¥400 billion by the fiscal year ending March 2015 are to be
implemented as a means of substantially increasing the efficiency of capital
investment.
(¥200 billion in personnel expenses and facility-related expenses + ¥200 billion in expenses)

WiFi platform is being strengthened (rather than simply reducing the burden of WiFi access)s 4URNING 7I&I PLATFORMS ALREADY AVAILABLE INTO h4HIRD !CCESSv AFTER FIXED AND MOBILE
s 3UPPORTING VALUE CHAIN FOR CORPORATE CUSTOMERS–6–

III-2. Capital Expenditure Trends at Telecommunications Carriers (2)Source: NTT DOCOMO IR materials

NTT DOCOMO

LTE

Source: KDDI and Softbank IR materials

KDDI/Softbank(Unit: ¥100 million)

7,268

7,350

923

1,730

Increase

7,490

Peak o3,205

6,124
5,168

1,990

2,150

2,060

4,500

4,500

KDDI Softbank
5,900

Mobile Mobile

Other(InformationSystems, etc.)

7,000

seIncrea

ut

4,216
FOMA

(Unit: ¥100 million)

3,140

3,470

3,440

Mar. 2012

Mar. 2013(Initial Target)

Mar. 2013(Revised Target)

Capital expenditure revised upwards by¥14.0 billion, from ¥735 billion to ¥749 billion

3,042 4,227

3,500 5,000

3,500

Mar. 2012

Mar. 2013(Initial Target)

Mar. 2013(Revised Target)

KDDI has not revised capital expenditure up, but the ¥215.5 billion in the first half is anacceleration of ¥46.4 billion compared with the same period of the previous fiscal year

Capital expenditure shifted sharply away from FOMA into Xi (LTE)KDDI is steadily increasing its number of fiber optic and smartphone (iPhone5)
service contracts through aggressive expansion of au Smart Value (fixed fiber optic+ mobile service)s Xi (LTE): ¥26 billion increase in investment (FOMA: ¥9.0 billion decrease)s Target of 30 million contracts revised up to 41 million contracts (fiscal 2015 target)s Construction of docomo cloud™

Extending coverage and further enhancing speed of Xi (LTE)Softbank has revised capital expenditure up by ¥90 billion due to forward ordering
as a result of base station augmentation for Platinum Band (900MHz) andenhancement of FDD-LTE facilities for the strongly performing iPhone5

s 23,000 Xi base stations by end of current fiscal years 112.5Mbps maximum downlink speed

Investment forecasts expected to peak out after the fiscal year ending March 2014
(below ¥700 billion level in medium term)Management integration between Softbank and e-Access Ltd., and acquisition of Sprint
Nextel Corporation in the U.S.

–7–III-3. Mobile Telecommunications Carrier Business Trends
March 31, 2012

March 31, 2013

March 31, 2014

March 31, 2015

★ FOMA construction Augmentation of capacity of existing base stations accompanying uptake of smartphones★ ,4% CONSTRUCTION s $ECEMBER  #OMMENCEMENT OF 8I SERVICEDOCOMO▲ Population coverage approx. 75%★ mova (PDC) dismantling(Greater efﬁciency through simultaneous construction with LTE)

★ ,4% CONSTRUCTION★ Adoption of 700MHz(Commencement of 15.1 service)s 3EPTEMBER  #OMMENCEMENT OF ,4% SERVICE USING I0HONE
▲ Actual population coverage approx. 96%au★ L800MHz dismantling★ 0LATINUM "AND -(Z CONSTRUCTION *ULY  COMMENCEMENT OF SERVICESoftbank★ ,4% CONSTRUCTION

s 3EPTEMBER  #OMMENCEMENT OF ,4% SERVICE USING I0HONE
▲ 4ARGET POPULATION COVERAGE  (ordinance-designated cities)★ ! 8'0 BASE STATION CONSTRUCTION FOR '(Z !NDROID

Other★ Projects to improve mobile phone dead zones between subway stations–8–III-4. Status of New Business Initiatives

Mega-Solar Power Initiative
Planned locations for construction of power stations
4SU #ITY -IE 0REFECTURE -7s )NVESTMENT c BILLION
s 2EVENUE FROM POWER SALES c BILLIONs )NCOME c BILLION

Business investment

Commercialization ﬁnalized
Commercialization under study

Underinvestigation

Showa-mura and other locations, Gunma Prefecture
0ROJECTS UNDER STUDY #APITAL EXPENDITURE c BILLION¥5 billion
Hitachiota City, Ibaraki Prefecture 2.8MWs )NVESTMENT c BILLION
s 2EVENUE FROM POWER SALES c BILLIONs )NCOME c BILLION¥2.3 billion —¥2.5 billion¥1.5 billion

Forecast at
beginning of ﬁscal year

Actual investment,
forecast investment

Expansion of Solar Power System Construction (Existing Business)
Revision of forecast orders received +¥4 billion¥6 billion[ Main orders received ]LocationeseacrIn¥2 billion
March 2011
Results

March 2012
Results

March 2013
Initial Targets

March 2013
Revised Targets–9–

Generating capacity

Orders Received

Yamanashi Prefecture

2.8MW¥0.8 billion

Hokkaido

2.0MW¥0.3 billion

Ibaraki Prefecture

0.7MW¥0.1 billion

Kanagawa Prefecture

0.7MW¥0.2 billion

IV-1. Structural Reform Initiatives and Outcomes-ARCH  )NNOVATION 'ROUP )NNOVATION Rationalization of personnels Implementation of career change support systemfor regular employeess 2EDUCTION IN NUMBER OF NON REGULAR EMPLOYEES/VERALL REDUCTION OF  IN NUMBER OFemployees throughout the Group-ARCH  -ARCH  #/-393 7!9  3USTAINED -ORE )N $EPTH 3TRUCTURAL 2EFORM 2EORGANIZATION OF 'ROUP BUSINESS MANAGEMENT STRUCTURE
s 2EVIEW OF DIVISION OF ROLES AMONG 'ROUP COMPANIESs 2ADICAL REFORM TO STRUCTURE OF PERSONNEL EXPENSES BY OPTIMIZING ALLOCATION OFPERSONNEL FOCUSED ON hQUALITYv OF OPERATIONS.EW COMPANIES ESTABLISHED /CTOBER s -ERGER OF TWO MOBILE TELECOMMUNICATIONS RELATED SUBSIDIARIESs -ERGER OF TWO 3HIKOKU BASED ACCESS RELATED SUBSIDIARIES ¬#/-393 -OBILE0HOS 4ECHNO 3HIKOKUStreamlining of assets
s 3ALE OF IDLE ASSETS
s 2EVALUATION OF IN HOUSE SYSTEMS ETC2EDUCTION OF DEPRECIATION EXPENSES ETC-ANAGEMENT INTEGRATION WITH 435+%. #ORPORATIONs )MPLEMENTATION OF BUSINESS CONCENTRATION AMALGAMATION OF LOCATIONS AND MERGER AND ABOLITION OF SUBSIDIARIES ETCs 'ENERATION OF SYNERGIES THROUGH CENTRALIZED PURCHASING AND INTEGRATION OF MISSION CRITICAL SYSTEMS ETC)MPROVEMENT IN PRODUCTIVITY AND EFFICIENCY ARMED WITH )4!IM TO BE AN INTELLIGENT WORKPLACEs )NTEGRATION OF INTRA GROUP MISSION CRITICAL SYSTEMS ADOPTION OF COMSTAR AND COMLINKs !DOPTION OF BUSINESS RELATED SYSTEMSs #REATE AND THOROUGHLY IMPLEMENT NEW WORKFLOWS BY INTRODUCING)4 TOOLS SMARTPHONES TABLETS ON THE CONSTRUCTION FRONTLINE
s %NSURE COMPETITIVE ADVANTAGE WITHIN THE INDUSTRY!CCESS BUSINESS !333 5333 $/#/-/ BUSINESS $ARWIN,ATEST DEVELOPMENTS IN NEW BUSINESS FIELDSs ))NITIATIVES IN SOLAR POWER BUSINESS URBAN INFRASTRUCTURE BUSINESS GREY WATER BUSINESS .44 MAINTENANCE AND OPERATION BUSINESS ETC– 10 –IV-2. Reorganization of Group Business Management StructureFundamental Approachs ! RADICAL REVISION OF THE DIVISION OF OPERATIONS AND ROLES BETWEEN OPERATING COMPANIES AND CONSOLIDATED SUBSIDIARIES WITH THE AIM OF MAXIMIZING PRODUCTIVITYs /PERATING COMPANIES TO SPECIALIZE IN GROUP STRATEGY PERSONNEL TRAINING STRATEGY AND CONSTRUCTION MANAGEMENT ETC IN A MOVE TOWARD EFFECTING A MINIMAL STRUCTUREs #ONSOLIDATED SUBSIDIARIES TO SPECIALIZE IN STANDARD OPERATIONS OPERATIONS THAT CAN BE EXPRESSED IN TERMS OF UNIT COST AND PROMOTE ONGOING PRODUCTIVITY IMPROVEMENTS&OCUS ON QUALITY OF OPERATIONS.EW $IVISION OF 2OLES

3TIMULATION OF PERSONNEL TRANSFERS-AINTENANCE OF SOLIDARITY0REVENTION OF JOB ALIENATION BETWEEN WORKERS ATHEADQUARTERS AND VARIOUS WORKSITES DUE TO LACK OFUNDERSTANDING OF DIFFERING WORK SITUATIONSs -ANAGEMENT IMPROVEMENT STRATEGIES/PERATING COMPANY'ROUP STRATEGYs /UTSOURCING EVALUATION SELECTION COSTING ETCs 0ROCUREMENT
s "USINESS DEVELOPMENT0ERSONNEL TRAININGSTRATEGY

s 4RAINING PLANNING
s 4RAINING FOR PERSONNEL IN NEW FIELDS
s (IRING EVALUATION SALARIES AND BENEFITS-ARKETING

s /RDER RECEIPT ACTIVITIES#ONSTRUCTION
MANAGEMENT

s 3TRATEGIES TO IMPROVE PRODUCTIVITY
s 3TANDARDIZATION AND PRODUCTION OF MANUALSs ,EGAL AND CONTRACTUAL REGULATION OPERATIONS
s "ASIC SAFETY AND QUALITY CONTROL/THERs "USINESS PLANNING/PERATIONS THAT REQUIRE PLANNING STRATEGY AND MANAGEMENT/UTSOURCINGCONTRACTS

3ECONDMENTAND DETACHMENT#ONSOLIDATED SUBSIDIARIESs $ESIGNs -ANAGEMENT OF OUTSOURCED CONSTRUCTION
s 0ROCESSES TO PROHIBIT SUBCONTRACTING
s $IRECT MANAGEMENT OF A SPECIFIED VOLUME OFCONSTRUCTION TO GUARANTEE ORDERING CAPACITY

s 3UPPLEMENTARY OPERATIONS
s 3UPPLY OF TEMPORARY PERSONNEL/PERATIONS THAT REQUIRE IMPROVEMENT IN PRODUCTIVITY– 11 –/UTSOURCINGCONTRACTS

3ECOND TIEROUTSOURCED COMPANIESV. Status of Treasury Stock and Policies for Returns to ShareholdersDecision to acquire ¥2 billion in treasury stock in the second half of the fiscal year
in addition to ¥3 billion in treasury stock acquired during the first half
Scheduled for the second half

20.27 million shares

Use in implementing
management integration
with TSUKEN Corporation
8.35 million shares

UÊÓ°ÓÊÊÃ >ÀiÃÊ>ÝÕUÊáÓÊLÊ>ÝÕ

Newlyacquired
portion19.18 million shares

Dividends per Share

9.37 million shares

4.96 million shares

Newly acquired portion
4.38 million shares(Approximately ¥5 billion)

Mar. 2007

Mar. 2008

¥17

¥17

Interim Results
3.2 million shares(Approximately ¥3 billion)

Newly acquired portion
3.52 million shares(Approximately ¥3 billion)

Newly acquired portion
5.25 million shares(Approximately ¥5 billion)

16.12 million sharesMar. 2009

Mar. 2010

Mar. 2011

Mar. 2012

Mar. 2013

¥20

¥20

¥20

¥20

¥20 (Planned)

15.02 million shares

Newly acquired portion
0.99 million shares(Approximately ¥1.2 billion)

22.34 million shares

Newly acquired portion
5.54 million shares(Approximately ¥5 billion)¥10

Newly acquired portion
3.61 million shares(Approximately ¥3 billion)[ Interim ]¥7¥7(including a ¥3commemorative dividend)¥10¥10¥10¥10[ Year-end ]¥10¥10¥10¥10¥10¥10Consolidated Payout Ratio

19.5%

20.3%

26.5%

36.2%

27.1%

36.0%

¥1022.8% (Planned)– 12 –