May 10, 2016

COMSYS Holdings Corporation
Consolidated Financial Results for the Fiscal Year Ended March 31, 2016
Under Japanese GAAP
Head Ofﬁce:
17-1, Higashigotanda 2-chome, Shinagawa-ku, Tokyo 141-8647, Japan
Stock Exchange Listings: First Section of Tokyo Stock Exchange (Securities code: 1721)
URL:
http://www.comsys-hd.co.jp
Representative:
Hajime Takashima, President and Representative Director
For Inquiry:
Hidehiko Ozaki, Director and General Manager of Finance & Accounting Department (Telephone:81-3-3448-7000)
Scheduled Annual General Meeting of Shareholders: June 29, 2016
Scheduled Commencement of Dividend Payment: June 30, 2016
Scheduled Filing of Securities Report:
June 29, 2016
Supplementary Materials on Financial Results:
Attached
IR Presentation on Financial Results:
Scheduled (For Institutional Investors and Analysts)
Amounts less than one million yen have been omitted.

1. Consolidated Financial Results (for the ﬁscal year ended March 31, 2016)(1) Consolidated Operating Results
Net SalesYear ended March 31, 2016
Year ended March 31, 2015

¥320,654
328,631(Millions of yen, except per share data and percentages)

Operating Income(2.4)%(0.8)¥23,849
27,674Net Income Attributable to
Owners of Parent

Recurring Proﬁt(13.8)%
0.4¥24,223
28,121(13.9)%
0.2¥15,420
16,767(8.0)%
2.3

Notes: 1. Comprehensive income:Year ended March 31, 2016: ¥12,546 million [ (38.0)%]
Year ended March 31, 2015: ¥20,249 million [ 19.8%]
2. Percentages indicate the percentage change from the corresponding period of the previous fiscal year.
Net Income per ShareNet Income per Share(Diluted)

Return on Equity¥136.75
142.72¥136.18
141.907.9%
9.0

Year ended March 31, 2016
Year ended March 31, 2015
(Reference) Equity in earnings of afﬁliates:

Year ended March 31, 2016: ¥— million

Recurring Proﬁt/ Total Assets

Operating Margin

9.1%
10.9

7.4%
8.4

Year ended March 31, 2015: ¥— million(2) Consolidated Financial Position(Millions of yen, except per share data and percentages)

Total Assets
As of March 31, 2016
As of March 31, 2015

Net Assets¥266,066
264,019(Reference) Shareholders’ equity:

Equity Ratio¥196,543
194,038

Net Assets per Share
73.4%
73.0

As of March 31, 2016: ¥195,379 million¥1,764.13
1,682.70

As of March 31, 2015: ¥192,774 million(3) Consolidated Cash Flows

Year ended March 31, 2016
Year ended March 31, 2015

(Millions of yen)

Cash Flows fromOperating Activities¥13,089
26,575

Cash Flows from
Investing Activities¥ (7,303)(11,882)

Cash Flows from
Financing Activities¥(11,307)(12,199)

2. Cash Dividends for Shareholders of Common Stock(Millions of yen, except per share data and percentages)

Consolidated BasisCash Dividends per ShareYear ended March 31, 2015
Year ended March 31, 2016
Year ending March 31, 2017 (Forecast)

Total
Dividends(Annual)End of
1st QuarterEnd of2nd QuarterEnd of3rd Quarter

Year-End

Annual¥ ———¥15.00
15.00
20.00

¥ —
—
—

¥15.0020.00
20.00¥30.0035.00
40.00

3. Consolidated Earnings Forecast (for the ﬁscal year ending March 31, 2017)
Net Sales

Cash and Cash Equivalents
at End of Year
¥28,818
33,435

Operating Income¥3,504
3,902

Dividend
PayoutRatio

Ratio of
Dividends to
Net Assets

21.0%
25.6
27.7

1.9%
2.0

(Millions of yen, except per share data and percentages)

Recurring Proﬁt

Net income attributable
Net Income per Shareto owners of parent

Six months ending September 30, 2016
¥138,000
7.2%¥ 6,800
4.0%¥ 7,200
4.9%¥ 4,600
1.2%¥ 41.53
Year ending March 31, 2017
340,000
6.0
25,0004.8
25,5005.3
16,0003.8
144.47Note. For ﬁscal-year ﬁgures, percentages indicate the percentage change from the previous ﬁscal year. For ﬁrst-half ﬁgures, percentages indicate the percentagechange from the corresponding half of the previous ﬁscal year.

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

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

As of March 31, 2016
141,000,000 shares
30,248,743 shares

As of March 31, 2015
145,977,886 shares
31,414,907 sharesYear ended March 31, 2016
112,765,680 sharesYear ended March 31, 2015
117,489,316 shares(Reference) Summary of Non-Consolidated Financial Results
Non-Consolidated Financial Results (for the ﬁscal year ended March 31, 2016)(1) Non-Consolidated Operating Results
Year ended March 31, 2016
Year ended March 31, 2015

(Millions of yen, except per share data and percentages)

Operating Revenues

Operating Income

Recurring Proﬁt¥4,3595,495¥3,422
4,610¥3,417
4,626(20.7)%
62.5(25.8)%
82.9(26.1)%
80.2

Net Income¥3,3644,658(27.8)%
86.8

Note: Percentages indicate the percentage change from the corresponding period of the previous fiscal year.
Net Income per ShareNet Income per Share (Diluted)¥29.81
39.58

Year ended March 31, 2016
Year ended March 31, 2015¥29.6939.35(2) Non-Consolidated Financial Position(Millions of yen, except per share data and percentages)

Total Assets
As of March 31, 2016
As of March 31, 2015
(Reference) Shareholders’ equity:

Net Assets¥137,528
135,959

Equity Ratio¥69,604
76,263As of March 31, 2016: ¥69,061 million

Net Assets per Share
50.2%
55.7

¥623.07660.80

As of March 31, 2015: ¥75,763 million<Reason for Disparities in the Non-Consolidated Earnings from the Previous Fiscal Year>
During the current fiscal year, dividend income from consolidated subsidiaries decreased, causing significant disparities with the figures for theprevious fiscal year across the board for operating revenues, operating income, recurring profit, net income, net income per share and net income pershare (diluted).
*Statement regarding implementation of audit proceduresThis Consolidated Financial Results Report is not subject to the audit procedures prescribed under the Financial Instruments and Exchange Act ofJapan. As of the date this Consolidated Financial Results Report was disclosed, however, audit procedures applicable to financial statements
prescribed under the aforementioned Financial Instruments and Exchange Act had not been completed.
*Disclaimer concerning the Proper Use of Business Results Forecasts and Other Relevant Specific Items
1. Forward-looking statements including earnings forecasts contained in this document are based on certain reasonable assumptions and beliefs inlight of information currently available to management. Readers are advised that actual results may differ materially from forecasts due to avariety of factors. With respect to the conditions that underpin earnings forecasts as well as cautionary statements regarding the proper use of
earnings forecasts, please refer to “(1) Analysis of Operating Results” under “1. Analysis of Operating Results and Financial Position” of thisConsolidated Financial Results report in the Accompanying Materials section on page 3.
2. COMSYS Holdings Corporation plans to hold an IR presentation on its financial results for institutional investors and analysts on Friday,
May 13, 2016. Other materials distributed during the IR presentation will be posted on the Company’s website in a timely manner after
the presentation.

2

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

Accompanying Materials
1. Analysis of Operating Results and Financial Position(1) Analysis of Operating Results1) Operating Results for the Fiscal Year Ended March 31, 2016
During the fiscal year ended March 31, 2016 (April 1, 2015 to March 31, 2016), the Japanese economy maintained amoderate recovery, including improvements in corporate performance and the employment environment due to the effectsof economic policies taken by the Japanese government and monetary easing carried out by the Bank of Japan.
Nevertheless, the outlook remained uncertain, with concerns about the economic slowdown in China and emerging
countries and the slump in crude oil prices.
In the information and communications field, the COMSYS Group’s principal area of activity, there were significant
changes in services provided and market conditions. These changes included newly expanded demand due to the wholesaling of
optical access services (the optic fiber collaboration model), and technical innovation aimed at diversifying and adding
functionality to smartphones and tablets by taking advantage of high-speed wireless broadband services such as LTE. Moreover,in both the public and private sectors, expansion was anticipated in social infrastructure investment aimed at developing theInternet of Things (IoT) in areas such as healthcare, disaster prevention, and e-government, based on advanced information andcommunication technology (ICT) to link goods and services, as well as policies for building national resilience, development of
the environment and energy business, and preparation for the Tokyo Olympics and Paralympic Games.
The COMSYS Group took initiatives for top-line expansions, which included entering the solar and other ecologicalinnovation businesses, making efforts to enter the electricity retail business utilizing solar power generation by taking advantageof the liberalization of the electricity retail market, engaging in sales activities in response to rising public sector and ICT
investment, and venturing into new business domains focused on the smart society. Moreover, the Group worked to transfer
personnel to growth businesses and improve profit through such means as increasing construction efficiency and cutting costs.
Under these circumstances, orders received in the current fiscal year decreased by 1.5% year on year to ¥331,986
million due to a reduction in capital expenditure by telecommunications carriers. Meanwhile, net sales fell by 2.4% year on
year to ¥320,654 million.
From a profit perspective, although the Group endeavored to secure profit through structural reform, including
cutting costs, operating income fell by 13.8% year on year to ¥23,849 million, due in part to the fall in net sales, and net
income attributable to owners of the parent declined by 8.0% year on year to ¥15,420 million.
2) Earnings Forecast for the Fiscal Year Ending March 31, 2017
In the consolidated earnings forecasts for the COMSYS Group for the year ending March 31, 2017, although capital
expenditure by telecommunications carriers is on a downward trend, orders received are expected to continue rising given
the increase in public- and private-sector demand for social infrastructure projects, including policies for building national
resilience, the environment and energy business, and preparation for the Tokyo Olympics and Paralympic Games. Sales are
forecast to rise due to the consolidation of Tokyo Hosoh Kogyo Co., Ltd., in addition to the continuing high volume ofwork in progress carried over from the current period.
From a profit perspective, due to the promotion of structural reforms initiated to date, as well and efforts toincrease efficiency and cut costs, profit is expected to rise.
Consolidated Earnings Forecast(Millions of yen, except percentages)

Year ended March 31, 2016

Year ending March 31, 2017

ChangeOrders received¥331,986¥350,000

5.4%

Net sales

320,654

340,000

6.0

Gross profits

43,38946,500

7.2

Operating income

23,84925,000

4.8

Recurring profit

24,22325,5005.3

Net income attributable to owners of parent

15,42016,000

3.8

3COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

(2) Analysis of Financial Position
1) Analysis of Assets, Liabilities and Net Assets(a) Assets
Current assets as of March 31, 2016 stood at ¥155,551 million, ¥3,672 million higher than at the end of the previous fiscal year.
This was mainly attributable to a ¥4,565 million decrease in cash and cash equivalents and a ¥9,046 million increase in notes andaccounts receivable – trade. Fixed assets as of March 31, 2016 stood at ¥110,514 million, ¥1,625 million lower than at the end of
the previous fiscal year. This was mainly attributable to a decrease in investments and other assets of ¥1,555 million.
As a result, total assets amounted to ¥266,066 million as of March 31, 2016, an increase of ¥2,046 million comparedwith the end of the previous fiscal year.
(b) Liabilities
Current liabilities as of March 31, 2016 stood at ¥61,225 million, up ¥433 million compared with the previous fiscal year-end.
This was mainly attributable to an increase of ¥4,515 million in accounts payable – trade and a ¥2,638 million decrease in othercurrent liabilities, primarily consumption tax payable, etc. As of March 31, 2016, long-term liabilities amounted to ¥8,296
million, ¥892 million lower compared with the end of the previous fiscal year. This was mainly attributable to a ¥795 million
decrease in deferred income taxes.
As a result, total liabilities amounted to ¥69,522 million, a decrease of ¥458 million compared with the end of theprevious fiscal year.
(c) Net assets
Net assets stood at ¥196,543 million as of March 31, 2016, an increase of ¥2,505 compared with the end of the previous fiscal
year. Although retained earnings increased by ¥12,011 million, after accounting the current fiscal year’s net income, this waslargely attributable to a decline in net assets due to the acquisition of treasury stock.
As of the end of the fiscal year under review, the equity ratio stood at 73.4%, up from 73.0% as of March 31, 2015
2) Analysis of Cash Flow
Cash and cash equivalents stood at ¥28,818 million at the end of the fiscal year, a decrease of ¥4,616 million, or 13.8%,
compared with the end of the previous fiscal year.
The principal factors underpinning movements in each of the Group’s major cash flows for the fiscal year ended
March 31, 2016 are presented as follows.
(a) Cash flows from operating activities
Net cash provided by operating activities stood at ¥13,089 million compared with net cash provided by operating activities of¥26,575 million for the previous fiscal year. The major cash inflows were income before income taxes and other adjustments to
net income of ¥24,040 million and depreciation and amortization of ¥5,009 million. Major cash outflows for the fiscal year
ended March 31, 2016 included receivables – trade of ¥8,377 million and income taxes paid of ¥7,829 million.
(b) Cash flows from investing activities
Net cash used in investing activities totaled ¥7,303 million for the fiscal year under review compared with net cash of¥11,882 million used in investing activities in the previous fiscal year. The major components were acquisitions of property
and equipment of ¥4,639 million and payments of loans receivable of ¥3,695 million.
(c) Cash flows from financing activities
Net cash used in financing activities was ¥11,307 million for the fiscal year ended March 31, 2016, compared with ¥12,199
million used in financing activities in the previous fiscal year. Acquisition of treasury stock amounted to ¥8,025 million,
while cash dividends totaled ¥3,402 million.
4

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

(Reference) Changes in Cash Flow-Related Indicators
Year ended
March 31, 2012

Year ended
March 31, 2013

Year ended
March 31, 2014

Year ended
March 31, 2015

Year ended
March 31, 2016

Equity ratio (%)

71.7

71.6

71.1

73.0

73.4

Equity ratio based on market value (%)

49.8

58.4

76.0

64.4

72.3

Ratio of interest-bearing liabilities to cash flows (%)

4.9

47.6

6.8

1.6

3.9

2,571.4

173.7

2,460.5

3,788.7

1,348.5

Interest coverage ratio (times)

Equity ratio: equity capital / total assets
Equity ratio based on market value: gross market capitalization / total assets
Ratio of interest-bearing liabilities to cash flows: interest-bearing liabilities / cash flows
Interest coverage ratio: cash flows / interest payment
Notes: 1. All indicators are calculated on the basis of consolidated financial figures.
2. Gross market capitalization is based on the total number of shares issued and outstanding excluding treasury stock.
3. Cash flows is net cash provided by operating activities.
4. Interest-bearing liabilities include all liabilities stated on the Group’s consolidated balance sheets on which interest is paid.
5. Interest paid is the amount of interest paid stated on the Group’s consolidated statements of cash flows.

(3) Basic Policy for Distribution of Profits and Dividends for the Current and Next Fiscal YearsCOMSYS Holdings has positioned the return of profits to shareholders as a key management priority. The Company
adopts the basic policy of ensuring the stable and continuous payment of cash dividends while taking into consideration
its operating performance.
Guided by the aforementioned policy, COMSYS Holdings paid an interim dividend of ¥15 per share for the fiscal year
ended March 31, 2016. The Company also intends to pay a period-end cash dividend of ¥20 per share, for an annual cash
dividend of ¥35 per share (interim dividend ¥15, period-end dividend ¥20). Moreover, to further enhance shareholder returns
and facilitate the implementation of a flexible capital policy that is responsive to changes in the corporate environment, COMSYS
Holdings acquired 4,734 thousand shares (¥7.99 billion) of treasury stock in the fiscal year under review. Furthermore, toeliminate concerns about the future dilution of shares in addition to increasing returns for shareholders through a reduction in the
total number of issued shares, COMSYS Holdings retired 4,977 thousand shares (¥5.77 billion) of treasury stock in the fiscal year
under review.
In the fiscal year ending March 31, 2017, taking into consideration such factors as earnings performance and thedividend payout ratio, COMSYS Holdings plans to increase the dividend per share by ¥5 and pay an annual cash dividend of¥40 per share. The intention is to pay an interim cash dividend of ¥20 per share and a period-end cash dividend of ¥20 per share.
Moreover, COMSYS Holdings intends to acquire treasury stock up to a total upper limit of ¥5 billion.

5

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

2. Management Policy(1) Basic Policy on Corporate Management
Since its foundation, the COMSYS Group has worked to build diverse infrastructure that supports the foundation of Japan’ssocial and economic activities and anticipates the needs of future generations.
Specifically, the COMSYS Group has continued to actively expand its businesses, which range from the construction of
telecommunications infrastructure, urban environment development and ICT-related construction through to the renewableenergy business, including solar power generation, to meet today’s latest needs in business collaboration with partners.
The future market environment will change significantly, and the COMSYS Group will continue with “structuralreform” initiatives to overcome the challenging competitive environment by enhancing productivity and strengthening costcompetitiveness from a medium- to long-term perspective. In addition, the COMSYS Group will not only continue to build thevital public infrastructure that forms the foundations of Japanese society with advanced technology in order to achieve economic
growth and affluent lifestyles, but it will also contribute to the creation of a secure, safe and sustainable society through disasterprevention projects.

(2) Target Management Indicators and Medium- and Long-Term Corporate Management Strategy
In 2014, the COMSYS Group established target indicators for Group management and each business with an eye to theanticipated business environment in ten years’ time.
(1) Net sales: At least ¥400.0 billion(2) Operating income: At least ¥30.0 billion(3) Increase net sales percentage of non-carrier business (Social System-Related and Other, and IT Solutions)To achieve the aforementioned indicators, the COMSYS Group aims to increase social contribution and corporate value
more than ever before through the construction of diverse infrastructure that supports life and society, in addition to thetelecommunications-related construction developed so far.

(3) Challenges to be Addressed
In the environment surrounding the COMSYS Group, investment in social infrastructure is expected to rise in the public andprivate sectors. Such investment includes the IoT utilizing ICT, full-scale reconstruction following the Great East Japan
Earthquake, policies for building national resilience, the renewable energy business, and preparation for the Tokyo Olympics andParalympic Games.
Nevertheless, in the telecommunications sector, although significant changes in services and market conditions,
including technical innovation aimed at diversifying and adding functionality to smartphones and tablets by taking advantage ofhigh-speed wireless broadband services will stimulate demand, the Group’s business environment is expected to become morechallenging in anticipation of a decline in capital expenditure by carriers due to the shift from the development of infrastructure
to the provision of information contents and other services.
In this market environment, the COMSYS Group will endeavor to further promote the COMSYS WAYa, which is its
medium- to long-term management strategy, and it will specifically address the challenges below.
Expand the top-linei) Actively increase orders received in response to higher public investment and investment in ICTii) Actively enter and expand the green innovation business, including the solar power business(Expand business areas taking advantage of the liberalization of electric power)iii) Pioneer new business areas with a focus on the Smart Communityiv) Seek out M&A opportunities and enhance business alliances

6

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

Promote structural reformsi) Mobilize personnel for growth businessesii) Maximize the use of human resources by fostering multi-skilled employeesiii) Strengthen integrated sales and project construction systems at Group companiesiv) Utilize construction IT platform that provides comprehensive management from order receipt through to project management

In order to promote the further strengthening of initiatives to address these challenges in the midst of unprecedented changes inthe environment, as outlined above, the COMSYS Group has established the COMSYS Group Management Philosophy as the
new guideline going forward, forming a cohesive force supporting the Group’s stakeholders.
COMSYS Group Management Philosophy
At the COMSYS Group, we are united as a Groupand 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.

3. Basic Approach to Selection of Accounting Standard
The COMSYS Group’s policy for the time being is to use Japanese GAAP for the preparation of its consolidated financial statements
because its business operations are primarily carried out in Japan, and comparison with other Japanese companies is thus facilitated.

7

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

4. Consolidated Financial Statements(1) Consolidated Balance Sheets
Millions of yen
As of March 31, 2015
As of March 31, 2016

ASSETS
Current assets:
Cash and cash equivalents
Notes and accounts receivable—trade
Lease investment assets
Accumulated cost of construction in progress
Merchandise
Materials and supplies
Deferred income taxes
Other current assets
Less: Allowance for doubtful receivables
Total current assets
Fixed assets:
Property and equipment:
Buildings and structures
Less: Accumulated depreciation
Buildings and structures, net
Machinery, vehicles and equipment
Less: Accumulated depreciation
Machinery, vehicles and equipment, net
Land
Lease assets
Less: Accumulated depreciation
Lease assets, net
Construction in progress
Total property and equipment
Intangible assets
Goodwill
Other intangible assets
Total intangible assets
Investments and other assets:
Investment securities
Long-term loans receivable
Deferred income taxes
Net defined benefit asset
Other assets
Less: Allowance for doubtful receivables
Total investments and other assets
Total fixed assets
Total assets

8

33,496
93,5132,900
15,215
218
468
3,480
2,640
(55)
151,878

28,930102,559
2,662
15,261
112
390
3,152
2,533
(51)
155,551

51,012(24,878)
26,133
18,271(13,418)
4,852
39,770
450
(139)
311
1,227
72,29554,120(26,217)
27,902
18,636(14,034)
4,601
39,265
565
(224)
341
767
72,878

3,394
4,249
7,643

2,935
4,055
6,990

12,7004,833
367
11,392
5,156(2,250)32,201
112,140
264,019

10,460
8,033
319
9,094
4,758
(2,020)30,645110,514
266,066

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

Millions of yen
As of March 31, 2015
As of March 31, 2016

LIABILITIESCurrent liabilities:
Accounts payable—trade
Short-term bank loans
Income taxes payable
Advances received on construction in progress
Allowance for warranty work on construction projects
Allowance for losses on construction contracts
Other current liabilities
Total current liabilities
Long-term liabilities:
Deferred income taxes
Deferred tax liabilities for unrealized gains on land revaluation
Net defined benefit liability
Allowance for directors’ retirement benefits
Other long-term liabilities
Total long-term liabilities
Total liabilities
NET ASSETS
Shareholders’ equity:
Common stock
Additional paid-in capital
Retained earnings
Treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income:Unrealized gain (loss) on other securities
Unrealized gain (loss) on land revaluation
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

944,675
100
3,852
1,540
257
15
10,34960,79149,191
114
3,296
710
202
—
7,711
61,225

2,982
1,508
3,784
222
691
9,189
69,980

2,186
1,428
3,726
219
735
8,296
69,522

10,00056,615
164,836(34,852)
196,599

10,00051,264
176,847(36,008)
202,104

2,638(7,936)
1,473(3,824)500762
194,038
264,0192,350(7,856)(1,219)(6,724)542
621
196,543
266,066

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)Millions of yen

Net sales
Cost of sales
Gross profits
Selling, general and administrative expenses
Operating income
Other income:Interest income
Dividend income
Reversal of allowance for doubtful receivables
Rent income on noncurrent assets
Foreign exchange gains
Other
Total other income
Other expenses:
Interest expenses
Rent expenses
Provision for allowance for doubtful receivables
Foreign exchange losses
Other
Total other expenses
Recurring profit
Extraordinary income:Gain on sales of fixed assets
Gain on sale of investment securities
Gain on redemption of investment securities
Gain on payback of insurance payments
Gain on reversal of subscription rights to shares
Gain on negative goodwill
Other
Total extraordinary income
Extraordinary loss:
Loss on sales of fixed assets
Loss on disposal of fixed assets
Loss on impairment of fixed assets
Special payments on employees’ retirement benefits
Other
Total extraordinary loss
Income before income taxes and other adjustments to net income
Income taxes:
Current
Deferred
Total income taxes
Net income
Net income (loss) attributable to non-controlling interests
Net income attributable to owners of parent

10

Year ended
March 31, 2015

Year ended
March 31, 2016

328,631
280,693
47,93820,264
27,674

320,654277,264
43,38919,54023,849

58
216
—
101
150
176
702

62
168
165
93
—
172
662

7
40
168
—
39
254
28,121

9
39
4
145
90
289
24,223

46
46
44
55
24
—
8
225

72
237
—
8
—
386
5
709

149
128
432
196
158
1,064
27,283

3
98
470
162
159
893
24,0409,438
1,093
10,531
16,751(16)
16,767

7,417
1,170
8,588
15,45130
15,420COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

(Consolidated Statements of Comprehensive Income)Millions of yen

Net income
Other comprehensive income:Unrealized gain (loss) on other securities
Unrealized gain (loss) on land revaluation
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of the parent
Comprehensive income (loss) attributable to non-controlling interests

11

Year ended
March 31, 2015

Year ended
March 31, 2016

16,751

15,451

843
153
2,501
3,498
20,249(292)
80(2,693)(2,905)
12,546

20,258(8)12,522
23

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

(3) Consolidated Statements of Changes in Net Assets
Millions of yen

Shareholders’ equity

Year ended March 31, 2015
Balance at the end of the previous period

Commonstock

Additional
paid-in capital

Retainedearnings

Treasurystock,at cost

Total
Shareholders’equity10,00055,494

148,713(28,658)

185,549

10,00055,494

151,500(28,658)

188,337

Cumulative effect ofchanges in accounting policies
Restated balance

2,787

2,787

Changes during the period
Cash dividends(3,545)

Net income attributableto owners of parent

16,767(3,545)
16,767

Repurchase of treasury stock(7,938)(7,938)

Disposal of treasury stock

1,121

1,744

2,865

Retirement of treasury stock

—

—

—

Purchase of treasury stockof subsidiaries——

Changes of scope of consolidation

112

112

Net changes during the period
except for shareholders’ equity
Total changes during the period
Balance at the end of the period

—

1,121

13,335(6,194)

8,262

10,00056,615

164,836(34,852)

196,599

Millions of yen

Accumulated other comprehensive income

Year ended March 31, 2015
Balance at the end of the previous period

Unrealized
gain (loss) onother securities

Unrealized
gain (loss)
on landrevaluation

1,803(8,090)Total
accumulated
otherRemeasurementsof deﬁned comprehensive Subscription
incomebeneﬁt plansrights to shares(1,028)(7,315)478

Noncontrollinginterests

Total
net assets

701

179,414

Cumulative effect ofchanges in accounting policies
Restated balance

2,787
1,803

(8,090)(1,028)(7,315)478

701

182,202

Changes during the period
Cash dividends(3,545)

Net income attributableto owners of parent

16,767

Repurchase of treasury stock(7,938)

Disposal of treasury stock

2,865

Retirement of treasury stock—

Purchase of treasury stockof subsidiaries—

Changes of scope of consolidation

112

Net changes during the period
except for shareholders’ equity
Total changes during the period
Balance at the end of the period

835

153

2,501

835

153

2,501

3,490

22

60

11,836

2,638(7,936)

1,473(3,824)500762

194,038

12

3,490

22

60

3,573

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

Millions of yen

Shareholders’ equity

Year ended March 31, 2016
Balance at the end of the previous period

Commonstock

Additional
paid-in capital

Retainedearnings

Treasurystock,at cost

Total
Shareholders’equity10,00056,615

164,836(34,852)

196,599

10,00056,615

164,836(34,852)

196,599

Cumulative effect ofchanges in accounting policies
Restated balance—

Changes during the period
Cash dividends(3,402)

Net income attributableto owners of parent

15,420(3,402)
15,420

Repurchase of treasury stock(8,002)(8,002)

Disposal of treasury stock

273

1,067

1,341

Retirement of treasury stock(5,778)

5,778—

Purchase of treasury stockof subsidiaries

154

154

Changes of scope of consolidation

(6)

(6)

Net changes during the period
except for shareholders’ equity
Total changes during the period
Balance at the end of the period—(5,350)12,011(1,155)

5,504

10,00051,264

176,847(36,008)

202,104

Millions of yen

Accumulated other comprehensive income

Year ended March 31, 2016
Balance at the end of the previous period

Unrealized
gain (loss) onother securities

Unrealized
gain (loss)
on landrevaluation

2,638(7,936)

Total
accumulated
otherRemeasurementsof deﬁned comprehensive Subscription
incomebeneﬁt plansrights to shares

1,473(3,824)500

Noncontrollinginterests

Total
net assets

762

194,038

Cumulative effect ofchanges in accounting policies
Restated balance

—
2,638

(7,936)

1,473(3,824)500762

194,038

Changes during the period
Cash dividends(3,402)

Net income attributableto owners of parent

15,420

Repurchase of treasury stock(8,002)

Disposal of treasury stock

1,341

Retirement of treasury stock—

Purchase of treasury stockof subsidiaries

154

Changes of scope of consolidation
Net changes during the period
except for shareholders’ equity
Total changes during the period
Balance at the end of the period

(6)
(288)

80

(2,692)(2,900)(288)

80(2,692)2,350(7,856)(1,219)

13

41

(141)

(2,999)(2,900)

41

(141)

2,505

(6,724)542

621

196,543

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

(4) Consolidated Statements of Cash Flows
Millions of yen

Cash flows from operating activities:
Income before income taxes and other adjustments to net income
Depreciation and amortization
Loss on impairment of fixed assets
Gain on negative goodwill
Amortization of goodwill
Increase (decrease) in allowance for doubtful receivables
Decrease in net defined benefit liability
Interest and dividends received
Interest expenses
Decrease (increase) in receivables—trade
Decrease in inventories
Increase (decrease) in payables—trade
Gain on sale of investment securities
Increase in other assets
Increase (decrease) in other liabilities
Other, net
Cash and cash equivalents received on interest and dividends income
Cash and cash equivalents paid for interest expenses
Cash and cash equivalents paid for income taxes
Net cash provided by operating activities
Cash flows from investing activities:
Decrease in time deposits, net
Payment for purchases of investment securities
Proceeds from sale of investment securities
Proceeds from redemption of investment securities
Collection of investments in capital
Purchase of investments in subsidiaries
resulting in change in scope of consolidation
Proceeds from purchase of stocks of subsidiaries
resulting in change in scope of consolidation
Purchase of investments in subsidiaries
Acquisitions of property and equipment
Acquisitions of intangible fixed assets
Proceeds from sale of property and equipment
Payments of loans receivableCollection of loans receivable
Purchase of insurance funds
Proceeds from cancellation of insurance funds
Other, net
Net cash used in investing activities

14

Year ended
March 31, 2015

Year ended
March 31, 2016

27,283
4,672
432
—
527
140
(241)
(274)
7
6,206
3,028
(1,825)(44)(1,553)590
135
39,085268(7)(12,771)
26,57524,040
5,009
470
(386)
594
(236)
(264)
(230)
9
(8,377)
653
2,955
(177)
(998)
(2,506)146
20,701227(9)(7,829)13,089

60
(172)
111
100
50

59
(206)
1,156
100
—

(2,575)——(47)(7,349)(1,452)270(1,766)
804
(17)
163
(61)
(11,882)

216(70)(4,639)(1,664)863(3,695)
511
(16)
235
(152)
(7,303)

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

Millions of yen

Cash flows from financing activities:
Decrease in short-term borrowings, net
Repayment of long-term debt
Acquisitions of treasury stock
Proceeds from sale of treasury stock
Purchase of treasury stock of subsidiaries
Cash dividends paid
Cash dividends paid to non-controlling interests
Repayments of finance lease obligations
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase (decrease) in cash and cash equivalents resulting
from change of scope of consolidation
Increase in cash and cash equivalents resulting from merger
Cash and cash equivalents at end of year

15

Year ended
March 31, 2015

Year ended
March 31, 2016

(1,170)—(7,958)546—(3,545)(4)(68)(12,199)
02,495
30,915(8)(16)(8,025)234(7)(3,402)(3)(78)(11,307)(0)(5,521)33,43524—
33,435883
21
28,818