Presentation of Performance for the First Half
Fiscal Year Ending March 31, 2019

November 9, 2018

Contents
I. Overview of Performance for the First Half of the Fiscal Year Ending March 31, 2019
1. Highlights of the First-Half Financial Statements

4

2. Details of Orders Received by Segment5

3. Details of Net Sales by Segment

6

4. Details of Operating Income

7

5. Status of Contract Backlogs

8

II. Full-Year Targets for the Fiscal Year Ending March 31, 2019
1. Business Targets for the Fiscal Year Ending March 31, 201910

2. Order Targets by Segment

11

3. Sales Targets by Segment

12

4. Trends in NTT Fixed-Line Related Business13

5. Trends in NTT Mobile Business

14

6. Trends in NCC Business15

7. Trends in IT Solutions Business16

8. Trends in Social System-Related Business

17

III. Future Growth Strategy
1. Progress of COMSYS VISION 2020

19

2. Creating Management Consolidation Synergies

20

3. Expanding IT Solutions Business21

4. Expanding Social System-Related Business

22

5. Centralizing Operations and Utilizing IT

23

6. Operating Proﬁt Growth Simulation for Three Consolidated Companies

24

7. Promoting Drastic Structural Reform

25

IV. Shareholder Returns Policy
1. Shareholder Returns Policy (Dividends and Acquisition of Treasury Stock)27

I. Overview of Performance for the First Halfof the Fiscal Year Ending March 31, 2019

I-1. Highlights of the First-Half Financial Statements
Orders received, net sales and operating income all achieved targets• Orders received signiﬁcantly exceeded targets as IT Solutions business and NTT-AC engineering businessorders remained favorable.
• Net sales achieved target backed by a high order backlog and rose signiﬁcantly year on year due to theconsolidation of Kando co., Ltd.
• Operating income increased due to growth in net sales backed by the high volume of construction projects.

(Unit: ¥100 million)

Performance

Comparisons withthe previous term

Comparisonswith target

Orders Received

1,901

-28

+19

Net Sales

1,778

+256

+78

Operating Income

109

+12

+4

Operating Margin

6.2%-0.2 percentage points+0.0 percentage points4I-2. Details of Orders Received by Segment
Orders received surpassed targets in all segments• NTT Engineering business: orders received fell year on year in the rebound from accelerated MB projects, but they surpassed
targets as orders received for AC business was favorable.
• NCC Engineering business: orders received increased year on year and were higher than target due to strong orders received
for au and Softbank projects.
• IT Solutions business: orders received remained strong, particularly in the business alliance area and rose both year on year
and compared with the target.
• Social System-Related business: a decline in orders received in the solar construction business was offset by the
consolidation of Kando and strong orders received for tender projects.

(Unit: ¥100 million)

Performance

Comparisons withthe previous term

Comparisonswith target

NTT Engineering

889

-58

+39

NCC Engineering

173

+1

+8

IT Solutions

335

+42

+35

Social SystemRelated and Other

503

-14

+8
5

I-3. Details of Net Sales by Segment
A large volume of construction projects was completed,and net sales in all segments were higher year on year and exceeded targets• NTT Engineering business: strong sales due to favorable orders received for AC projects.
• NCC Engineering business: sales increased due to the acceleration of au base station projects.
• IT Solutions business: sales increased in all areas of enterprise solutions, alliance projects and software development.
• Social System-Related business: sales increased signiﬁcantly year on year due to the consolidation of Kando and steadyprogress in sectors such as the solar construction business.

(Unit: ¥100 million)

Performance

Comparisons withthe previous term

Comparisonswith target

NTT Engineering

806

+9

+16

NCC Engineering

162

+16

+12

IT Solutions

263

+34

+23

Social SystemRelated and Other

545

+194

+25
6

I-4. Details of Operating Income
Operating income growth achieved with a large volume
of construction projects completed• Increase in net sales offset changes in the product mix, contributing to operating income growth• SG&A expenses curbed through measures such as work-style innovation

Net sales
growthChanges in
product mix

-12
+31

FY March 2018
2Q Results

Changes in
Decrease inproduct mix
SG&A expenses+6
Increase in
SG&A expenses
due to newconsolidation+7

97

Increase in
SG&A expenses

Decrease in
SG&A expenses
-1

-2

-5

109

+12

Net sales
growth+8105+4FY March 2019
2Q Results

FY March 2019
2Q Target7I-5. Status of Contract Backlogs
Contract backlogs rose significantly due to ¥33.5 billion
contract backlog brought by three consolidated companies• NTT Engineering business: contract backlog fell year on year due to steady progress in AC and MB constructions and a decline in orders received• NCC Engineering business: contract backlog rose year on year as au orders were accelerated• IT Solutions business: contract backlog increased year on year as strong orders received continued• Social System-Related business: contract backlog fell year on year due to a decline in orders received for solar construction projects(Unit: ¥100 million)

2,053
+458

1,782
+408
+464

SocialSystem-Relatedand Other
IT
NCC
NTT

1,477
403

1,013
280
133
39

186
62

437
136
50
749

Contract backlog
at beginning of 3Q

Contract backlog
at beginning of 1Q

FY March 2017

1,595
604

582
625

824

558
Contract backlog
at beginning of 1Q

1,373

335

Contract backlog
brought by
three consolidated
companies

201
75

900

Contract backlog
at beginning of 3Q

FY March 2018

150
85
734

Contract backlog
at beginning of 1Q

223
95
817

Contract backlog
at beginning of 3Q

FY March 20198

II. Full-Year Targets
for the Fiscal Year Ending March 31, 2019

II-1. Business Targets for the Fiscal Year Ending March 31, 2019
Significant increase in orders received, net sales,
and operating income as a result of consolidation of three companies• Orders received, net sales, and operating income target to reach all-time high
• Aiming to ensure achievement of targets even for organic growth• Planning to create consolidation synergies as soon as possible to improve falling operating margin
FY March 2018
Performance(Unit: ¥100 million)

FY March 2019
Revised Target(Existing Group)

Orders Received

4,022

4,900*Net Sales

3,800

4,700

Operating Income

303

340

Operating Margin

8.0%(4,050)(4,100)(320)*Orders received ﬁgure in revised target includes ¥33.5 contract backlog brought forward by three consolidated companies.

7.2%(7.8%)

Comparisons withFY March 2018

[Reference]FY March 2019
Initial Target

+887

4,000

+899

4,000

+36

320

-0.8 percentage points

8.0%

10

II-2. Order Targets by Segment
Focus on increasing orders received in growth segments• NTT Engineering business: planning signiﬁcant growth in orders received due to new consolidation• NCC Engineering business: increase target due to strong orders received for MB projects and as aresult of new consolidation• IT Solutions business/Social System-Related business: planning signiﬁcant increase in orders
received due to new consolidation and further enhancement in order-taking capabilities bypromoting the business company system[Reference]FY March 2019
Initial Target

FY March 2018
Performance

FY March 2019
Revised Target

Comparisons withFY March 2018

NTT Engineering

1,845

2,150

+304

1,755

NCC Engineering

392

430

+37

380

IT Solutions

604

760

+155

640

Social SystemRelated and Other

1,180

1,560

+379

1,225

(Unit: ¥100 million)11II-3. Sales Targets by Segment
Planning significant sales growth in all segments due to new consolidation• NTT Engineering business: planning signiﬁcant sales growth due to new consolidation• NCC Engineering business: aiming to achieve target through steady implementation of strong orders received
for MB projects• IT Solutions business/Social System-Related business: aiming to achieve targets by promoting businesscompany system and optimizing allocation of construction resources[Reference]FY March 2019
Initial Target

FY March 2018
Performance

FY March 2019
Revised Target

Comparisons withFY March 2018

NTT Engineering

1,859

2,155

+295

1,830

NCC Engineering

357

410

+52

350

IT Solutions

590

725

+134

600

Social SystemRelated and Other

992

1,410

+417

1,220

(Unit: ¥100 million)12II-4. Trends in NTT Fixed-Line Related BusinessContinuing strong performance for access-related projects• AC projects, including provision of optical lines such as Hikari Collaboration, will perform strongly.
NW projects will decline slightly.
• Focus on obtaining orders for Tokyo Olympic and Paralympic Games-related engineering projects
NTT Regional Communications Business Capex(Unit: ¥100 million)

5,450

5,496

NTT Engineering (AC/NW) Business Net Sales(Simple non-consolidated sum value for 8 companies)*(Unit: ¥100 million)

2,326

1,495
1,217

215

+277

208

515
NW
AC

92
422

First Half

535

1,008
+19

Full YearFY March 2018

80
454

1,280

Full Year
TargetFY March 2019

First Half

Investment infiber optics
1,530

2,100

Investment infiber optics
1,610First Half Full YearFirst Half Full YearFY March 2018

FY March 2019

TargetNo. of FLET’S Lines Provisioned (including Hikari collaboration)(Unit: 10,000 lines)

295

281
147

145

First Half Full YearFirst Half Full YearFY March 2018

FY March 2019

Target[Source: Prepared by COMSYS Holdings Corporation based on NTT Financial Results
Briefing Materials, NTT Business Operation Plan for the Fiscal Year Ending March 31, 2019]*The simple non-consolidated sum data are the total net sales for the following eight companies: Nippon COMSYS Corporation; SANWA COMSYS Engineering Corporation; TOSYS Corporation; TSUKEN Corporation; NDS Co., Ltd.;SYSKEN Corporation; Hokuriku Denwa Kouji Co., Ltd.; and COMSYS JOHO SYSTEM Corporation.
The results for the fiscal year ended March 31, 2018 and the first half of the fiscal year ending March 31, 2019 do not include figures for NDS Co., Ltd.; SYSKEN Corporation; or Hokuriku Denwa Kouji Co., Ltd., which were consolidated in
October 2018.

13

II-5. Trends in NTT Mobile BusinessStarting investment necessary for launching 5G pre-service• As NTT Docomo announced 5G capex plans, expecting to receive orders for 5G-related projects• Strengthening process management in response to concentration of projects in metropolitan Tokyo areaand downsizing of projects• Expecting to receive orders for new 3.4GHz frequency-related projects
NTT Engineering (MB) Business Net Sales

NTT DOCOMO Capex(Simple non-consolidated sum value for 8 companies)(Unit: ¥100 million)(Unit: ¥100 million)

632

630

-2

276

266

-10

630

2,675
Communications
Business 2,552
Other 123First HalfFY March 2018

Schedule for Commencing 5G Services by Carriers
2019

2020

Frequency Rugby
allocation World Cup

2021

2022

2023

5,560

5,465

305
First Half Full YearFY March 2018

RevisedTargetFY March 2019

First Half Full Year

5,900

5,770

5,700
Up ¥20.0
billion

2,554

5,380

2,406
340
148
First Half Full YearPlan
FY March 2019320
Initial Plan

Capex up ¥20.0 billion from initial plan for 5G
pre-service and disaster countermeasures(¥10.0 billion for 5G construction)

Tokyo Olympic andParalympic Games

Ministry of Internal Affairs
and Communication
promoting in local areas 5G

Pre-service

Service deployment as needed, including service in local areas
Commercial service

Commercial service• Launch from some areas • 5G core network introduction
Pre-service
Commercial service• Audio-visual experiential events
Commercial service• Change 4G to 5G by upgrading software

NTT DOCOMO 5G Capex Plan

Total ¥1 trillion
for 5G infrastructure construction fromfiscal 2019 to fiscal 2023
*No increase in annual capex amount[Source: Prepared by COMSYS HOLDINGS Corporation based on NTT
DOCOMO Results Briefing Materials]

14II-6. Trends in NCC Business
Mobile-related construction will remain at high level• Volume of construction for au and Softbank base stations will continue at high level• Aiming to obtain further orders since order receiving for projects related to au’s new frequency 1.7GHz has started• Receiving some orders for base station projects in relation to market entry by Rakuten and aiming to receive
orders for NW construction
KDDI Capex (payment)

NCC Engineering Business Net Sales(Unit: ¥100 million)

357
146

+16

162

First Half Full YearFY March 2018

RevisedTargetFY March 2019

1.7GHz MNO
frequency
allocated2019.10

Operations Service
commence commences(Tokyo, Nagoya,
Osaka)

2020

Entering 5G market

First Half Full YearPlan
FY March 2019

[Source: Prepared by COMSYS Holdings Corporation based on KDDI Results Briefing Materials]

Total ¥1 trillion investment for construction of 5G infrastructure from fiscal 2019 to fiscal 2023

Status of Rakuten
2019.7

3,064

2,461

410

First HalfFY March 2018

5,700

5,608

+52

First Half Full Year2018.4(Unit: ¥100 million)

410

Softbank Capex (Softbank segment)
2026.32029.3Population
coverage 96%

Planned numberof subscribers:
10 million(Unit: ¥100 million)

Number of
Forecast
to be ahead stations planned:of schedule
27,397

Capex amount: ¥526.3 billion plus cost to remove existing facilities

4,200

3,788
1,839
1,293

Estimated to be less than the initially planned ¥600.0 million• Reduce cost of base station construction by sharing tower equipment withelectric power companies• Reduce costs by adopting advanced networking technologies[Source: Prepared by COMSYS HOLDINGS Corporation based on Rakuten Results Briefing Materials]

First Half Full YearFirst Half Full YearFY March 2018

FY March 2019

Plan
(forecasts by CHD)

[Source: Prepared by COMSYS HOLDINGS Corporation based on
Softbank Results Briefing Materials and Securities Report]15

II-7. Trends in IT Solutions Business
Aiming for growth in all sectors, particularly alliances area
• Aim to further develop alliance business into a growth sector through expansion of partners• Complete projects in spite of tight schedules by optimizing human resource allocations among
COMSYS Group companies• Building platform for further business expansion through consolidation of the three companies
Profitability

Net Sales Growth Rate by Sector
Strengthen collaboration
with carriers

FY Mar. 2018

(IoT and security)(I
curity)y)

Up 40%Up 13%FY Mar. 2019
Corporate Solutions Sector (1)(Public sector, education,and nationwide rollout)

FY Mar. 2018

(Unit: ¥100 million)

Corporate Solutions (1)FY Mar. 2018

Software Sector(AI and RPA)

Up 17%IT Solutions Business Consolidated Net Sales
Corporate Solutions (2)FY Mar. 2019

Corporate Solutions Sector (2)C

FY Mar. 2019

Develop new software

Provide solutions witha high market growth rate

Expand alliances in sectors
with high growth rates

Converting to
COMSYS customers

725

FY Mar. 2019

+134

590

Up 20%

Alliance

FY Mar. 2018

Software228

First Half
Full YearFY March 2018

263
+34

First Half Revised Target
FY March 2019

Alliance Sector(Cloud computing,
IT infrastructure, and data centers)% is net sales growth rate

Growth16

II-8. Trends in Social System-Related Business
Aim for further growth in the infrastructure and telecommunications sectors• Aim for further growth in the infrastructure and telecommunications sectors through consolidation of the threecompanies and organic growth• Aim to expand alternative renewable energy business to complement peaking solar energy business• Build platform for further business expansion through consolidation of the three companies
Profitability

Net Sales Growth Rate by Sector

Renewable Energy Sector(Solar power, biomass power,
and wind power)

Expand business areas
Improve successful bid rate
FY Mar. 2018

FY Mar. 2019

FY Mar. 2019

Up 58%Up 67%FY Mar. 2018

Target solar power self-consumption business

Expand PFI businessEnter disaster prevention andmitigation businessTelecommunications sector
Expand biomass and other energy businesses(Expressways, plant electrical facilities,
FY Mar. 2019and reconstruction of government buildings)
Social System-Related and Others Business Consolidated Net Sales(Unit: ¥100 million)

Telecommunications

1,410

Renewable Energy
Infrastructure and Other Sectors

+417

992

545
350
First Half
Full YearFY March 2018

Up 27%FY Mar. 2018

Infrastructure
and Other Sectors(Undergrounding of electrical wiring,water supply and sewerage,
and agricultural engineering)+194

First Half Revised Target
FY March 2019% is net sales growth rate

Growth17

III. Future Growth Strategy

III-1. Progress of COMSYS VISION 2020
Achieved COMSYS VISION 2020 targets and move on to NEXT STAGECOMSYS VISION 2020 Targets

Net Sales
Operating Income

Net Sales
On to exceeding¥600.0 billion

At least ¥400.0 billion
At least ¥30.0 billion

NEXT
STAGE

Operating Income
Net Sales
Achieved target Achieved target

Operating Income(Operating Margin)

275

250

303

340

(8.3%)(7.5%)(8.0%)(7.2%)

4,700

3,800

ਲ਼঱ৈ

3,313

3,341

Formulating
new management targets• Growth strategy• Consolidation synergy• M&A• Structural reform

2,135
(45%)

IT
Growth Social
Sectors

927
NTT
NCC

Telecommunications
Carriers
2,386

2,565
(55%)

(Unit: ¥100 million)

FY March 2014

FY March 2017 FY March 2018 FY March 2019
Image of level ofTargetfull fiscal-year consolidated sales

FY March 202X

19

III-2. Creating Consolidation Synergies
Aim for NEXT STAGE as One COMSYS

Expand customer and business domains• Utilization of IT at the three consolidated companies(AC, NW, MB projects)√ Construction tools√ Construction management tools√ Photo inspection systems√ Report preparation tools• Eliminate duplication of tasks• Centralize common tasks• Promote dual stratification in contractor structure• Promote personnel mobility among group companies• Mutual leverage between the three consolidated
companies and existing COMSYS Group companies√ Expand customer base(both private and public sectors)√ Utilize each other’s brand power√ Expand each other’s business areas√ Share each other’s products, business know-how,and bidding capabilities• Optimize overall management resources and maximizeorder-taking ability through virtual companies beyond
group companies and business units

Carrier-related business

Sales Expansion

Cost Reduction

Promote drastic structural reform

IT Solutions business,
Social System-Related business

Promote work-style innovation
Increase productivity using AI, RPA and IT
Company has been transformed from the level of ¥400.0 billion net sales toa level exceeding ¥500.0 billion due to consolidation of the three companies
20III-3. Expanding IT Solutions Business
Expand business through maximum utilization of IT Solutions business assets
Three Cosolidated Companies

Existing COMSYS Group Companies

Customer BasePrivate sector Public sector• Hotels• Local governments, etc. Some
• Factories
customers• Regional companies, etc.

Private sector
Public sector• Universities• Financial Services Agency• Hospitals• Local governments, etc.
• Enterprises, etc.

Alliance partners• DELL, HP, Nutanix• System integrators• General contractors, etc.

Expand customers and areas using
local brand power of the three companies

PursuePursue nationwide
nationwide deployment
deployment
using
using COMSYSCOMSYS Group
Group capabilities
capabilities
Skills and resources of thethree consolidated companies

Common sectors

Skills and resources of existing Group companies• Software development, system integration,• Cloud, virtualization (Office 365, Nutanix)• E-money solutions, etc.

network integration, maintenance and operation

Hotel
OfficeEvent venues

Video on demand (VOD) viewing fees settlements
Confectionary and beverage installation and settlements
Ticket sales and food stall settlements• Various monitoring systems, etc.

१‫ش‬ং‫ش‬
Serverॿॵॺড‫ش‬ॡ
NetworkBusiness Assets

Hotel

Event venues

Conventional
converged infrastructureజਟ஑॥থং‫ش‬४ॻॖথইছ

E-money
IC cards

ঁॖঃ‫ش‬॥থং‫ش‬४ॻHyperconvergedॖথইছ५ॺছॡॳক‫ش‬
infrastructure andग़থॱ‫ش‬উছॖ६ॡছक़ॻ26
enterprise cloud OS

Storage५ॺঞ‫ش‬४३५ॸ঒ऋളහ৲
Greatersystem complexity
Vein authenticationಯဿੳ

Access log
ো୐஼টॢ• IoT, AI, and RPA-related solutions

઒Retail stores

Settlement
Card reader
moduleOfficeSurveillancecamera૰ଳढ़ওছ

Log collection serverটॢઽૐ१‫ش‬ং

Business site
DeviceEdge computer

Application Data
Communication
Cloud

Taxi
For example,
sensor, and camera

Platform
IoT security

IoT related to disaster prevention, agriculture, power, etc.

Integrate solutions and optimize resources through business company system
21

III-4. Expanding Social System-Related Business
Expand business through maximum utilization of Social System-Related business assets
Three Cosolidated Companies

Customer Base

Public sector• Local governments
Private sector• Waterworks• Expressways• Regional companies Bureaus, etc.
• Local operators, etc.

Existing COMSYS Group Companies

Somecustomers

Private sector
Public sector• Expressways• Ministry of Land, Infrastructure,• Construction
Transport and Tourism• Gas• Ministry of Defense• Renewable energy • Waterworks Bureaus
enterprises, etc. • Local governments, etc.
Expand customers and areas using
local brand power of the three companies

PursuePursue nationwide
nationwide deployment
deployment
using
using COMSYSCOMSYS Group
Group capabilities
capabilities
Skills of the three
consolidated companies• Air conditioning and sanitation facilities

Collaboration partners• NTT FACILITIES, INC.
• ORIX Corporation• Subcontractors, etc.

Common sectors• In-building power, communications engineering,
local disaster prevention facilities• Solar power generation systems, data center facilities

Skills of existing Group companies• Plant electrical facilities[Conventional undergrounding project] [Undergrounding project using PFI method]• PFI projects (undergrounding)Creates peak inlocal government budget
DesignBusiness Assets

Payment of project
expenses by
local government• Road-related equipment• Renewable energy systems, such as biomass

Enables local government
budget to be levelled out

Construction, etc.
Installation period

Private sector companies or Local government
consortiums bear construction pays in installments
expenses in installation period

COMSYS Group will contract for projects as member of consortium• Sound and lighting equipment• Water supply and sewerage facilities• Road paving projects• Gas pipe construction projects

Integrate construction capabilities and skills, and optimize resources through business company system
22III-5. Centralizing Operations and Utilizing IT
Promote thorough operational consolidation and utilization of IT in access-related business• Ensure backyard centralization of operations not dependent on construction sites to reduce costs• Promote utilization of IT for construction site and backyard to improve productivity and quality• Promote optimum resource allocation and systemization throughout COMSYS Group
Consolidation of
East Japan operations

Photo inspection center

Consolidated operation center for starting communication service• Integrated management ofworker information• Automatic updates based on
mobile information

Utsunomiya

Joban

TSUKEN(Sapporo)

Ueno

TOSYS
(Matoba)

AoyamaSetagaya

Worker database

Hachioji

COMSYSWest Japam

Tokyo

Confirmation of
construction process

Automatic assignmentof construction teams

Follow-up of
construction progress

Confirmation of
implementation results

Centralized into
2 Group sites
COMSYS
East Japam

Confirmation of quality

Planning to introduce AI in
the future for some photo
inspection operations• Receipt of order(EDI)• Automatic assignmentof orders• Real-time follow-up andvisualization of
construction progress• Automatic process
identification• Automatic checking of
project fees

• Checking anddetermination of
construction quality

Confirmation of
the day’s work

Deviceregistration• Creation of paperless worksite• Simplification of device operation

Progress
reportConstruction

Daily reporton work

Photos ofresults

Rework instructions

On siteCreate synergies as soon as possible• Self-checks to prevent
omission of photos

23III-6. Operating Profit Growth Simulation for Three Consolidated Companies
Leverage TSUKEN consolidation know-how at the three companies• Reduce costs through business selection and concentration, elimination and integration of
duplicated operations, and shared systems• Increase productivity by utilizing IT
Track Record of Improvementin TSUKEN Business Performance
Net Sales¥43.0 billion+13%

Net Sales¥48.7 billion

2.4%

Business selection and concentration,
elimination of duplicated operations• Merger and reorganization of consolidated subsidiaries

5.7%

OperatingMarginCost of sales

Cost Reduction Measures(Unit: ¥100 million)• Centralization of Hokkaido area AC and NW business and shared operations

+12%

429

Sharing of systems

384
୿ଵા

Operating 10
35
IncomeMar. 2010• Sharing of core systems and business-specific systems

-17%

28

• Sharing of construction-related IT systems

29

Mar. 2018

Other integration(Before consolidation)• Centralized purchasing• Cost of sales roughly proportional to net sales (variable cost)• SG&A expenses (fixed cost) down 17%• CMS

Financial estimates if cost reduction measures
are as successful as TSUKEN
Simple non-consolidated sum of thethree consolidated group companies(Unit: ¥100 million)

When net sales growth rate is 0%

When net sales grow 5%

Net Sales

1,195

OperatingMargin

1,195

4.0%
48
0

੾঵ਹஇ
Mar. 2018

1,255

1,195
5.5%

When net sales grow 10%

4.0%

1,315

1,195

6.1%

5.8%

65

48

72

Mar. 202X

Mar. 2018

Mar. 202X

4.0%
48

80

Mar. 2018

Mar. 202X

0*Estimates based on assumption that costs rise at same rate as net sales growth rate and that SG&A expenses fall 17% (compared with results in the fiscal year ended March 31, 2018).
Figures rounded down to nearest whole number.

24

III-7. Promoting Drastic Structural Reform
Create consolidation synergies as soon as possible and continually implement structural reform• Implement structural reform of the three consolidated companies and create consolidation synergies
as soon as possible by utilization of IT• Improve productivity, quality and safety by promoting further use of IT throughout the Group• Maximize human resources by implementing work-style innovation
Present measures for consolidation synergies

SectorIT

SystemHuman
resources

Tools and measures already introduced• Introduction of construction tools• Introduction of quantity survey and construction
management tools• Introduction of sales tools• Introduction of shared platform for core tasks• Standardization of business-related applications• Standardization of work flow
• Elimination and centralization of duplicatedoperations• Centralization of operations not dependent on
construction sites• Centralized purchasing, CMS• Dual stratification of prime contractors andpartner companies• Creation of mechanisms for personnel movement• Work-style innovation• Utilization of human resources

FY March 2019
(From October)

Measures to be continually promoted

Mar. 2019

Mar. 2020

Promote utilization of AI and IoT (photograph inspection, smart glasses, etc.)
Promote i-Construction (3D surveys)
Introduce RPA for simple operations/concentrate on high-value-added operations

Apply to integrated companies as soon as possible

Eliminate and centralize duplicated operations
Review

Eliminate and centralize duplicated operations
Promote dual stratification

Stimulate Group personnel movement
Promote work-style innovation
Promote multi-skilling25

IV. Shareholder Returns PolicyIV-1. Shareholder Returns Policy (Dividends and Acquisition of Treasury Stock)
Planning ¥3.0 billion additional acquisition of treasury stock,
taking total acquisition to ¥8.0 billion
270
Net Income

Total Dividends

Stock Repurchase

Negative
Goodwill

50(Unit: ¥100 million)[167]*[ 220 ]**

163

80

167

75

154

80

144

80

203 80

80
50

72

Stock
repurchase

Total
dividends****

29

35

39

44

58

March 2014

March 2015

March 2016

March 2017*

March 2018

March 2019
(Planned)**Interim

¥10

¥15

¥15

¥20

¥25

¥30

Year-end

Ordinary dividends: ¥10+
Commemorative dividends: ¥5

¥15

¥20

¥20

¥25

¥30

18.4%

21.0%

25.6%

30.8%
[ 26.6% ]*28.0%

32.7% → 26.9%[33.0%]**

Dividends + treasury stock
Net income

66.9%

66.2%

77.2%

85.6%
[ 74.0% ]*67.5%

56.6% → 56.5%[69.4%]**

Number of sharesof treasury stockat the end of the period

28.31
million shares

31.41
million shares

30.24
million shares

31.86
million shares

26.42
million shares—(Ownership Ratio)***(19.4%)(21.5%)(21.5%)(22.6%)(18.7%)

ROE

9.4%

9.0%

7.9%

7.3%
[ 8.3% ]*9.4%

Dividends per
Share(annual)68¥15

Consolidated Payout Ratio
Total Return Ratio—*
Figures in [ ]* are estimates assuming no impairment loss on goodwill.
** Figures in [ ]** are estimates assuming no increase in net income due to negative goodwill.
*** The total number of issued shares changed from 145.97 million shares to 141.00 million shares with the cancellation of 4.97 million shares of treasury stock on November 30, 2015.
**** Shares of treasury stock decreased by 16.50 million shares (11.7%) as a result of the share exchange with NDS Co., Ltd., SYSKEN Corporation, and Hokuriku Denwa Kouji Co., Ltd. on October 1, 2018.
Since the number of shares that pay dividends increased in the second half of the ﬁscal year as a result of the share exchange, the forecast for total dividends in the ﬁscal year ending March 31, 2019 increased from
¥6.8 billion to ¥7.2 billion.

27

Data Book
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

Orders Received and Net Sales by Detailed Business Area
for Eight Companies on a Non-Consolidated Simple Sum Basis

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 businessresults 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.

01-1 Consolidated Statements of Income (COMSYS.HD Consolidated)(Unit: ¥100 million)
FY March 2018

FY March 2019

FY March 2019

Comparisons with the Previous Term Comparisons with Forecasts
Difference (d) Percentage Difference (e) Percentage
Difference
Difference(c) – (a)(d) ⁄ (a)(c) – (b)(e) ⁄ (b)Full Year
Revised Targets(f)ProgressRate(c) ⁄ (f)2Q Results

2Q Targets

2Q Results

(a)

(b)

(c)

Orders Received

1,930

1,810

1,901

-28

-1.5%

91

5.1%

4,900

38.8%

Net Sales

1,521

1,700

1,778

256

16.9%

78

4.6%

4,700

37.8%

Gross Profits

208

225

227

18

9.1%

2

1.1%

635

35.8%

(13.7%)(13.2%)(12.8%)-0.9 p.p.

Selling, General and Administrative Expenses

111

120

117

6

6.1%

-2

-1.8%

295

39.9%

Operating Income

97

105

109

12

12.5%

4

4.5%

340

32.3%

(6.4%)(6.2%)(6.2%)-0.2 p.p.

99

107

112

12

(6.6%)(6.3%)(6.3%)-0.3 p.p.

68

70

71

3

(4.5%)(4.1%)(4.0%)-0.5 p.p.

(Gross Profit Margin)(Operating Margin)
Recurring Profit(Recurring Profit Margin)
Net Income Attributable to Owners of Parent(Net Profit Margin)-0.4 p.p.

(13.5%)

0.0 p.p.

12.5%

5(7.2%)

5.0%

0.0 p.p.

4.6%

1-0.1 p.p.

345

32.6%

(7.3%)

1.9%

270

26.4%

(5.7%)

Notes: 1. Figures are rounded down to the nearest whole unit. Profit margin, percentages of 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. The revised full year targets include the second-half targets of the NDS Group, the SYSKEN Group and the Hokuriku Denwa Kouji Group, which were consolidated in October 2018.
3. p.p. = percentage points

Statements of Income (COMSYS.HD Consolidated)
01-2 Consolidated
Revised Targets for Fiscal Year Ending March 31, 2019
(Unit: ¥100 million)
FY March 2018
Full Year
Results

FY March 2019

(Reference)

Full Year
Full Yearvs. Initial Targets
Initial Targets Revised Targets
Difference

YoY
Difference

Full Year
Revised Targets(Existing Group)
(d)

(a)

(b)

(c)

Orders Received

4,022

4,000

4,900

900

877

4,050

Net Sales

3,800

4,000

4,700

700

899

4,100

Gross Profits

534

560

635

75

100

560

(14.1%)(14.0%)(13.5%)-0.5 p.p.

-0.6 p.p.

(13.7%)

Selling, General and Administrative Expenses

230

240

295

55

64

240

Operating Income

303

320

340

20

36

320

(8.0%)(8.0%)(7.2%)-0.8 p.p.

-0.8 p.p.

(7.8%)

307

322

345

23

37

323

(8.1%)(8.1%)(7.3%)-0.8 p.p.

-0.8 p.p.

(7.9%)

203

210

270

60

66

210

(5.4%)(5.3%)(5.7%)

0.4 p.p.

-0.3 p.p.

(5.1%)(Gross Profit Margin)(Operating Margin)
Recurring Profit(Recurring Profit Margin)
Net Income Attributable to Owners of Parent(Net Profit Margin)(c) – (b)(c) – (a)Notes: 1. Figures are rounded down to the nearest whole unit. Profit margin, percentages of 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. The full year revised targets for the existing Group are the targets excluding the NDS Group, the SYSKEN Group and the Hokuriku Denwa Kouji Group, which were consolidated in October 2018.
3. p.p. = percentage points

02-1 Statements of Income for Each Company(Unit: ¥100 million)

Comparisons with the Previous Term

Nippon COMSYS-G

SANCOM-G

TOSYS-G

TSUKEN-G

Mar. 2018
2Q Results

Mar. 2019
2Q Results

Difference

Mar. 2018
2Q Results

Mar. 2019
2Q Results

Difference

Mar. 2018
2Q Results

Mar. 2019
2Q Results

Difference

Mar. 2018
2Q Results

Mar. 2019
2Q Results

Difference

1,278

1,256

-21

272

254

-18

132

128

-4

254

273

18

Net Sales

995

1,207

211

213

239

26

120

121

0

204

216

12

Gross Profits

141.6

151.3

9.7

25.3

27.9

2.6

10.3

10.1

-0.2

20.6

26.1

5.5

(14.2%)(12.5%)-1.7 p.p.

(11.9%)(11.7%)-0.2 p.p.

(8.6%)(8.4%)-0.2 p.p.

(10.1%)(12.1%)

2.0 p.p.

Selling, General and Administrative Expenses

72.9

78.6

5.6

11.8

12.1

0.3

7.2

7.2

-0.0

14.4

15.2

0.8

Operating Income

68.7

72.7

4.0

13.5

15.8

2.2

3.1

2.9

-0.2

6.2

10.9

4.7

(6.9%)(6.0%)-0.9 p.p.

(6.3%)(6.6%)

0.3 p.p.

(2.6%)(2.4%)-0.2 p.p.

(3.0%)(5.0%)

2.0 p.p.

Orders Received(Gross Profit Margin)(Operating Margin)

Recurring Profit(Recurring Profit Margin)

Net Income Attributable to Owners of Parent(Net Profit Margin)

70.1

74.6

15.8

3.0

11.4

(6.6%)(2.7%)(2.6%)-0.1-0.1 p.p.

6.6(6.4%)

2.1
0.2 p.p.

3.2(6.2%)

4.4-0.8 p.p.

13.6(7.0%)(3.3%)(5.3%)

4.7
2.0 p.p.

48.8

46.4

-2.4

9.0

10.8

1.7

2.1

2.1

-0.0

4.2

7.3

3.0

(4.9%)(3.8%)-1.1 p.p.

(4.2%)(4.5%)

0.3 p.p.

(1.8%)(1.8%)

0.0 p.p.

(2.1%)(3.4%)

1.3 p.p.

(Unit: ¥100 million)

Comparisons with Targets for the Full Year

Nippon COMSYS-G

SANCOM-G

TOSYS-G

TSUKEN-G

Mar. 2019 Mar. 2019 Progress Rate Mar. 2019 Mar. 2019 Progress Rate Mar. 2019 Mar. 2019 Progress Rate Mar. 2019 Mar. 2019 Progress Rate
2Q Results
2Q Results
2Q Results
2Q Results
Full Year
Full Year
Full Year
Full Year
Revised Targets
Revised Targets
Revised Targets
Revised Targets

Orders Received

2,730

1,256

46.0%

614

254

41.5%

307

128

41.8%

500

273

54.7%

Net Sales

2,790

1,207

43.3%

568

239

42.2%

300

121

40.4%

507

216

42.8%

39.8%

41.5%

33.8%

41.5%

380

151.3

(13.6%)(12.5%)

Selling, General and Administrative Expenses

158

78.6

Operating Income

222

72.7

(8.0%)(6.0%)

Gross Profits(Gross Profit Margin)(Operating Margin)

67

27.9

(11.9%)(11.7%)

49.8%

24

12.1

32.8%

42

15.8

(7.5%)(6.6%)

30

10.1(10.0%)(8.4%)

48.9%

15

7.2

37.1%

14

2.9

(4.9%)(2.4%)

63

26.1(12.4%)(12.1%)

47.2%

32

15.2

47.5%

19.7%

31

10.9

35.3%

(6.1%)(5.0%)

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

of Income for Each Company
02-2 Statements
Revised Targets for Fiscal Year Ending March 31, 2019
(Unit: ¥100 million)

Nippon COMSYS-GMar. 2019
Full Year
Initial Targets

SANCOM-G

Mar. 2019 vs. Initial Targets Mar. 2019
Full Year
Full Year
Difference
Targets
Initial Targets

Mar. 2019 vs. Initial Targets Mar. 2019
Full Year
Full Year
Difference
Targets
Initial Targets

TOSYS-G

TSUKEN-G

Mar. 2019 vs. Initial Targets Mar. 2019
Full Year
Full Year
Difference
Targets
Initial Targets

Mar. 2019 vs. Initial Targets
Full Year
Difference
Targets

Orders Received

2,730

2,730

0

605

614

9

290

307

17

500

500

0

Net Sales

2,770

2,790

20

565

568

3

300

300

0

505

507

2

Gross Profits

380

380

0

66

67

1

29

30

1

62

63

1

(13.7%)(13.6%)-0.1 p.p.

(11.7%)(11.9%)

0.2 p.p.

(9.7%)(10.0%)

0.3 p.p.

(12.3%)(12.4%)

0.1 p.p.

Selling, General and Administrative Expenses

160

158

-2

24

24

0

15

15

0

31

32

1

Operating Income

220

222

2

42

42

0

14

14

0

31

31

0

(7.9%)(8.0%)

0.1 p.p.

(7.4%)(7.5%)

0.1 p.p.

(4.7%)(4.9%)

0.2 p.p.

(6.1%)(6.1%)

0.0 p.p.

(Gross Profit Margin)(Operating Margin)

NDS-G
Mar. 2019
Full Year
Initial Targets

Mar. 2019 vs. Initial Targets Mar. 2019
Full Year
Full Year
Difference
Targets
Initial Targets

SYSKEN-G

Hokuriku Denwa Koji-G

Mar. 2019 vs. Initial Targets Mar. 2019
Full Year
Full Year
Difference
Targets
Initial Targets

Mar. 2019 vs. Initial Targets
Full Year
Difference
Targets

Orders Received

372

133

64

Net Sales

421

162

74

Gross Profits

50

16

10

(11.9%)(10.1%)(14.7%)

Selling, General and Administrative Expenses

32

12

7

Operating Income

18

4

3

(4.3%)(2.7%)(4.9%)(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. As the NDS Group, the SYSKEN Group and the Hokuriku Denwa Kouji Group were consolidated on October 1, 2018, the full year forecasts include only the amounts for the second half of the fiscal year.
4. p.p. = percentage points

03-1 Orders Received, Net Sales, and Contract Backlogs by Business Area (COMSYS.HD Consolidated)
Orders Received

FY March 2018

(Six months ended September 30)

Business Area

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

2Q Results

2Q Targets

2Q Results

(a)

(b)

(c)

947
171
293
517
1,930

850
165
300
495
1,810

889
173
335
503
1,901

FY March 2018

Net Sales(Six months ended September 30)

Business Area

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

Contract Backlogs

2Q Results

2Q Targets

2Q Results

(a)

(b)

(c)

796
146
228
350
1,521

790
150
240
520
1,700

806
162
263
545
1,778

FY March 2018
2Q Results

Business Area

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

(a)

900
75
201
604
1,782

FY March 2019
Comparisons with the Previous Term Comparisons with Targets
Difference (d) Percentage
Difference (e) Percentage
Difference
Difference(c) – (a)(d) ⁄ (a)(c) – (b)(e) ⁄ (b)

-58
1
42
-14
-28

-6.1%
0.8%
14.5%
-2.8%
-1.5%

39
8
35
8
91

4.6%
5.0%
12.0%
1.7%
5.1%

FY March 2019
Comparisons with the Previous Term Comparisons with Targets
Difference (d) Percentage
Difference (e) Percentage
Difference
Difference(c) – (a)(d) ⁄ (a)(c) – (b)(e) ⁄ (b)

9
16
34
194
256

1.3%
11.6%
15.2%
55.6%
16.9%

16
12
23
25
78

2.1%
8.7%
9.6%
5.0%
4.6%

(Unit: ¥100 million)
FY March 2019
Full Year
Revised Targets
(f)

2,150
430
760
1,560
4,900

-82
19
21
-22
-63

41.4%
40.3%
44.2%
32.3%
38.8%

(Unit: ¥100 million)
FY March 2019
Full Year
Revised Targets
(f)

2,155
410
725
1,410
4,700

(Unit: ¥100 million)
FY March 2019
Comparisons with the Previous Term
2Q Results
Difference (d) Percentage
Difference(c)(c) – (a)(d) ⁄ (a)

817
95
223
582
1,718

ProgressRate(c) ⁄ (f)

9.2%
25.8%
10.7%
-3.7%
-3.6%

Notes: 1. Figures are rounded down to the nearest whole unit. Increase and decrease as well as progress percentage data are calculated using a base unit of yen. Figures are rounded to the nearest first decimal place.
2. The contract backlog for the NDS Group, the SYSKEN Group and the Hokuriku Denwa Kouji Group as of September 30, 2018 is recorded in orders received for October.

ProgressRate(c) ⁄ (f)
37.4%
39.8%
36.3%
38.7%
37.8%

Received, Net Sales, and Contract Backlogs by Business Area (COMSYS.HD Consolidated)
03-2 Orders
Revised Targets for Fiscal Year Ending March 31, 2019

Orders Received
Business Area

NTT Engineering
NCC Engineering
IT Solutions
Social System-Related and Other
Total(Unit: ¥100 million)
FY March 2018
FY March 2019
Full Year
Full Year
Full Year
YoY
vs. Initial Targets
Results
Initial Targets Revised Targets
Difference
Difference
(a)

(b)

(c)

1,845
392
604
1,180
4,022

1,755
380
640
1,225
4,000

2,150
430
760
1,560
4,900

(c) – (b)

395
50
120
335
900

(c) – (a)

304
37
155
379
877

(Unit: ¥100 million)
FY March 2018
FY March 2019
Full Year
Full Year
Full Year
YoY
vs. Initial Targets
Results
Initial Targets Revised Targets
Difference
Difference

Net Sales
Business Area

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

(a)

(b)

(c)

1,859
357
590
992
3,800

1,830
350
600
1,220
4,000

2,155
410
725
1,410
4,700

(c) – (b)

325
60
125
190
700

(c) – (a)

295
52
134
417
899

Note. Figures are rounded down to the nearest whole unit. Increase and decrease as well as progress percentage data are calculated using a base unit of yen. Figures are rounded to the nearest first decimal place.

Received and Net Sales by Detailed Business Area
04-1 Orders
for Eight Companies on a Non-Consolidated Simple Sum Basis
FY March 2018

Orders Received(Six months ended September 30)

Business Area
AccessNetwork
MobileSubtotal

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

2Q Results

2Q Targets

2Q Results

(a)

(b)

(c)

516
100
322
938
171
230
254
1,595

490
100
250
840
170
230
145
1,385

511
96
272
881
176
255
156
1,468

FY March 2018

Net Sales(Six months ended September 30)

Business Area

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

AccessNetwork
MobileSubtotal

2Q Results

2Q Targets

2Q Results

(a)

(b)

(c)

422
92
276
791
146
171
128
1,238

450
70
270
790
150
175
185
1,300

454
80
266
801
164
192
223
1,382

FY March 2019
Comparisons with the Previous Term Comparisons with Targets
Difference (d) Percentage
Difference (e) Percentage
Difference
Difference(c) – (a)(d) ⁄ (a)(c) – (b)(e) ⁄ (b)

-4
-3
-49
-57
4
24
-98
-127

-0.9%
-3.7%
-15.3%
-6.2%
2.6%
10.6%
-38.6%
-8.0%

21
-3
22
41
6
25
11
83

4.4%
-3.5%
9.1%
4.9%
3.8%
10.9%
7.6%
6.0%

FY March 2019
Comparisons with the Previous Term Comparisons with Targets
Difference (d) Percentage
Difference (e) Percentage
Difference
Difference(c) – (a)(d) ⁄ (a)(c) – (b)(e) ⁄ (b)

32
-12
-10
9
18
21
95
143

7.8%
-13.8%
-3.9%
1.2%
12.6%
12.3%
73.8%
11.6%

4
10
-3
11
14
17
38
82

1.1%
14.5%
-1.5%
1.4%
9.9%
9.8%
21.1%
6.3%

(Unit: ¥100 million)
FY March 2019
Full Year
Revised Targets(f)ProgressRate(c) ⁄ (f)

1,330
195
600
2,125
430
570
680
3,805

38.5%
49.5%
45.5%
41.5%
41.0%
44.7%
22.9%
38.6%

(Unit: ¥100 million)
FY March 2019
Full Year
Revised Targets(f)ProgressRate(c) ⁄ (f)

1,280
215
630
2,125
410
530
580
3,645

Notes: 1. The non-consolidated simple sum data are for the following eight companies: Nippon COMSYS Corporation; SANWA COMSYS Engineering Corporation; TOSYS Corporation; TSUKEN Corporation;
NDS Co., Ltd.; SYSKEN Corporation; Hokuriku Denwa Kouji Co., Ltd.; and COMSYS JOHO SYSTEM Corporation.
2. Figures are rounded down to the nearest whole unit. Increase and decrease as well as progress percentage data are calculated using a base unit of yen. Figures are rounded to the nearest first decimal place.
3. Results for the second quarter of the fiscal year do not include figures for NDS Co., Ltd., SYSKEN Corporation, or Hokuriku Denwa Kouji Co., Ltd.

35.5%
37.3%
42.2%
37.7%
40.2%
36.3%
38.6%
37.9%

Received and Net Sales by Detailed Business Area for Eight Companies on a Non-Consolidated Simple Sum Basis04-2 Orders
Revised Targets for Fiscal Year Ending March 31, 2019
(Unit: ¥100 million)
FY March 2018
FY March 2019
Full Year
Full Year
Full Yearvs. Initial Targets
YoY
Results
Initial Targets Revised Targets Difference
Difference

Orders Received
Business Area
AccessNetwork
MobileSubtotal

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

(a)

(b)

(c)

997
197
638
1,833
393
483
539
3,250

985
190
565
1,740
380
505
485
3,110

1,330
195
600
2,125
430
570
680
3,805

(c) – (b)

345
5
35
385
50
65
195
695

(c) – (a)

332
-2
-38
291
36
86
140
554

(Unit: ¥100 million)
FY March 2018
FY March 2019
Full Yearvs. Initial Targets
YoY
Full Year
Full Year
Initial Targets Revised Targets Difference
Difference
Results

Net Sales
Business Area

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

AccessNetwork
MobileSubtotal

(a)

(b)

(c)

1,008
208
632
1,849
358
465
397
3,071

1,000
200
600
1,800
350
465
480
3,095

1,280
215
630
2,125
410
530
580
3,645

(c) – (b)

280
15
30
325
60
65
100
550

(c) – (a)

271
6
-2
275
51
64
182
573

Notes: 1. The non-consolidated simple sum data are for the following eight companies: Nippon COMSYS Corporation; SANWA COMSYS Engineering Corporation; TOSYS Corporation; TSUKEN Corporation;
NDS Co., Ltd.; SYSKEN Corporation; Hokuriku Denwa Kouji Co., Ltd.; and COMSYS JOHO SYSTEM Corporation.
2. Figures are rounded down to the nearest whole unit. Increase and decrease as well as progress percentage data are calculated using a base unit of yen. Figures are rounded to the nearest first decimal place.
3. Full year results do not include figures for NDS Co., Ltd., SYSKEN Corporation, or Hokuriku Denwa Kouji Co., Ltd.

05 Capital Expenditure, Depreciation and Amortization(Unit: ¥100 million)
FY March 2018

2Q Results

FY March 2019

Comparisons with the previous term
Percentage
Difference
difference

2Q Results

Full Year Targets
Initial Targets

Revised Targets

vs. Revised Targets
Progress rate

Difference

Tangible Assets

51

39

-11

-22.7%

55

82

27

47.6%

Intangible Assets

3

2

-0

-15.8%

14

20

6

12.4%

Total

54

41

-12

-22.4%

69

103

33

40.6%

Depreciation and Amortization

28

30

1

5.7%

58

72

13

41.8%

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.

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

3,250(Unit: ¥100 million)

3,250

-220

-220

3,029
Current
Liabilities

828(-239)

Current Assets

1,822• Cash and cash equivalents-54• Accounts receivable—trade-311• Accumulated cost of
construction in progress+102• Other current assets

+24

1,583

3,029

(-246)
-177
+11
-60
-20

• Accounts payable—trade• Advances received on
construction in progress• Income taxes payable• Other current liabilities

Long-Term
Liabilities

113

(+9)

104

582

(+16)

Net Assets

2,317

Fixed Assets• Treasury stock,at cost
Repurchase of treasury stock -40
Exercising stock options+3+16• Goodwill-5• Other assets

+7

1,427

+44
+71
-28

• Additional paid-in capital(+18)• Property, plant and equipment• Retained earnings
Net income
Cash dividends

2,334

+1
+37

+7

• Other

1,446
Equity ratio
From 70.8% to 76.5%

As of March 31, 2018

As of September 30, 2018

As of March 31, 2018

As of September 30, 2018

The Company has applied Partial Amendments to Accounting Standard for Tax Effect Accounting, etc. (Accounting Standards Board of Japan [ASBJ] Statement No. 28, February 16, 2018) fromthe beginning of the first quarter of the current fiscal year, and the figures for the previous fiscal year are the figures obtained by retroactively applying the said accounting standard, etc.

07 Consolidated Cash Flow (Condensed)
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

+53

-44

• Income before income taxes
and other adjustments
to net income• Depreciation and amortization• Decrease in receivables—trade• Increase in inventories• Decrease in payables—trade• Cash and cash equivalents
paid for income taxes• Other• New Consolidation

+108
+30
+312
-103
-187

(Unit: ¥100 million)• Acquisitions of property and equipment -40• Acquisitions of intangible fixed assets-2• Other-2

Cash Flows from
Financing Activities

-65

-88
-18

• Acquisitions of treasury stock• Cash dividends paid
• Other

+1

-40
-28
+2

-54
289

234

Cash and
Cash Equivalents
at End of Year

Cash and
Cash Equivalents
at End of Half YearAs of March 31, 2018

As of September 30, 2018

— 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’sbusiness areas, 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: http://www.comsys-hd.co.jp/