November 8, 2016

COMSYS Holdings Corporation
Consolidated Financial Results for the Second Quarter Ended September 30, 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 Filing of Quarterly Securities Report: November 10, 2016
Scheduled Commencement of Dividend Payment: December 5, 2016
Supplementary Materials on Quarterly Results:
Attached
IR Presentation on Quarterly Results:
Scheduled (For Institutional Investors and Analysts)
Amounts less than one million yen have been omitted.

1. Consolidated Financial Results (for the six months ended September 30, 2016)(1) Consolidated Operating Results(Millions of yen, except per share data and percentages)

Net Sales

Operating Income

Recurring Profit

Net Income Attributableto Owners of Parent

Six months ended September 30, 2016

¥132,2092.7%¥6,301(3.6)%¥6,456(5.9)%¥4,128(9.2)%

Six months ended September 30, 2015

128,720(10.8)

6,540(41.3)

6,862(39.3)

4,545(33.8)

Notes: 1. Comprehensive income: Six months ended September 30, 2016: ¥4,152 million [(5.7)%]
Six months ended September 30, 2015: ¥4,401 million [(42.0)%]
2. Percentages indicate the percentage change from the corresponding period of the previous fiscal year.

Net Income per ShareNet Income per Share (Diluted)

Six months ended September 30, 2016¥36.63¥36.51

Six months ended September 30, 2015

40.00

39.83

(2) Consolidated Financial Position(Millions of yen, except percentages)

Total Assets

Net Assets

Equity Ratio

As of September 30, 2016

¥251,328¥197,624

78.2%

As of March 31, 2016

266,066

196,543

73.4(Reference) Shareholders’ Equity:

As of September 30, 2016: ¥196,521 million

As of March 31, 2016: ¥195,379 million

2. Cash Dividends for Shareholders of Common Stock(Yen)

Cash Dividends per Share over the Fiscal YearEnd of 1st QuarterEnd of 2nd QuarterEnd of 3rd Quarter

Year ended March 31, 2016¥ —¥15.00¥ —¥20.00¥35.00Year ending March 31, 2017

—

20.00
—

20.00

40.00

Year ending March 31, 2017 (Forecast)Year-End

AnnualNote: Most recently announced revisions to dividend forecast: No

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

¥340,000

6.0%(Millions of yen, except per share data and percentages)

Operating Income

Recurring Profit

Net Income Attributable
Net Income per Shareto Owners of Parent¥25,000¥25,500¥16,000

4.8%

Notes: 1. Most recently announced revisions to consolidated earnings forecast: No
2. For fiscal-year figures, percentages indicate the percentage change from the previous fiscal year.

5.3%

3.8%

¥141.97

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Second Quarter Ended September 30, 2016

*Notes:(1) Changes in significant subsidiaries during the period under review (changes to subsidiaries that would alter the scope ofconsolidation): No(2) Adoption of accounting methods specific to quarterly consolidated financial statements: No(3) 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: Yesc) Changes in accounting estimates: Nod) Restatements of prior period financial statements due to error correction: No(4) Number of shares issued (common stock)		
a) Number of shares issued (including treasury stock)b) Number of treasury stock		c) Average number of shares issued in the period

As of September 30, 2016
141,000,000 shares
29,964,156 shares

As of March 31, 2016
141,000,000 shares30,248,743 shares

Six months ended September 30, 2016
112,697,853 shares

Six months ended September 30, 2015
113,628,380 shares*Statement regarding the Implementation Status of Quarterly Review ProceduresThis Consolidated Financial Results report is not subject to the quarterly review procedures prescribed under the Financial Instruments andExchange Act. At the time of disclosing the quarterly consolidated financial results report, quarterly financial statement review procedures based on
the 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 ofearnings forecasts, please refer to “(3) Discussion of Forward-Looking Information, including Consolidated Earnings Forecasts” under “1.
Qualitative Information Regarding Consolidated Financial Results for the Period under Review” of this Consolidated Financial Results reportin the Accompanying Materials section on page 3.
2. The Company plans to hold a financial results briefing for institutional investors and analysts on Friday, November 11, 2016. The materials
distributed at the briefing will be posted promptly on the Company website after the meeting.

2COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Second Quarter Ended September 30, 2016

Accompanying Materials
1. Qualitative Information Regarding Consolidated Financial Results for the Period under Review(1) Discussion of Operating Results
During the cumulative second quarter period (April 1, 2016 to September 30, 2016) of the fiscal year ending March 31,
2017, the Japanese economy experienced a tone of moderate recovery, including improvements in corporate earnings and theemployment environment, backed by a range of policies being advanced by the Japanese government and the Bank of Japan.
Nevertheless, the outlook remained uncertain, with appreciation in the value of the yen and falling stock prices in addition
to economic uncertainty overseas, including the slowdown in emerging countries in Asia, particularly China, together withthe decision by the U.K to leave the European Union.
In the information and communications field, the COMSYS Group’s principal area of activity, the construction ofa mobile network environment was promoted to accommodate the sharply increasing, higher-volume traffic accompanying
the diversification and added functionality of smartphones and tablets. Moreover, in both the public and private sectors,
expansion was anticipated in social infrastructure investment aimed at new innovations utilizing information andcommunication technology (ICT). This includes the internet of things (IoT), wherein everything is connected to theinternet, and artificial intelligence (AI), which has the capacity to learn and make high-level decisions by itself, as well as
policies for building national resilience, the development of the environment and energy business, and preparation for theTokyo Olympics and Paralympic Games.
The COMSYS Group took initiatives for top-line expansion, which included entering the ecological innovation
business utilizing solar power generation, particularly solar power construction projects, venturing into new business domains
in response to the rise in public sector and ICT investment aimed at the development of a smart society, and implementing
M&A activities. Moreover, the Group worked to transfer personnel to growth businesses and improve profit through suchmeans as increasing construction efficiency and cutting costs.
Under these circumstances, orders received in the second quarter period increased 9.8% year on year to ¥178,611
million, and net sales rose 2.7% to ¥132,209 million.
Nevertheless, from a profit perspective, although the COMSYS Group worked to increase profitability throughstructural reforms, operating expenses increased due to the consolidation of a subsidiary. As a result, operating income fell by
3.6% year on year to ¥6,301 million while net income attributable to owners of the parent company decreased 9.2% to¥4,128 million.
(2) Discussion of Financial Position
Total assets as of September 30, 2016 amounted to ¥251,328 million, down ¥14,737 million compared with the end of theprevious fiscal year. This was mainly attributable to a decrease in notes and accounts receivable – trade. Liabilities decreased¥15,818 million compared with the end of the previous fiscal year, to ¥53,704 million. This was largely attributable to adecrease in accounts payable – trade. Net assets increased by ¥1,080 million compared with the end of the previous fiscalyear, to ¥ 197,624 million. This was primarily attributable to an increase in retained earnings.
In accordance with each of the aforementioned factors, the equity ratio stood at 78.2%, compared with 73.4% at theend of the previous fiscal year.
(3) Discussion of Forward-Looking Information, including Consolidated Earnings Forecasts
Turning to the consolidated earnings forecast for the full fiscal year ending March 31, 2017, there are no changes to data andinformation announced on May 10, 2016.

3

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Second Quarter Ended September 30, 2016

2. Quarterly Consolidated Financial Statements(1) Consolidated Balance Sheets
Millions of yen

ASSETS		 Current assets:			 Cash and cash equivalents			 Notes and accounts receivable—trade			 Inventories:				 Accumulated cost of construction in progress				 Other			 Other current assets			 Less: Allowance for doubtful receivables			 Total current assets		 Fixed assets:			 Property and equipment:				 Buildings and structures, net				 Land				 Other, net				 Total property and equipment			 Intangible fixed assets				 Goodwill				 Other intangible fixed assets				 Total intangible fixed assets			 Investments and other assets:				 Investment securities				 Other assets				 Less: Allowance for doubtful receivables				 Total investments and other assets			 Total fixed assets		 Total assets

4

As of March 31, 2016

As of September 30, 2016

28,930102,559

37,20962,47815,261
502
8,349
(51)
155,551

28,215
631
8,655
(38)
137,152

27,90239,2655,710
72,87829,24840,18013,85083,279

2,935
4,055
6,990

3,312
3,978
7,291

10,46022,205(2,020)30,645110,514
266,066

10,24915,278(1,922)
23,605
114,176
251,328

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Second Quarter Ended September 30, 2016

Millions of yen

LIABILITIES		 Current liabilities:			 Accounts payable—trade			 Short-term bank loans			 Income taxes payable			 Advances received on construction in progress			 Allowances			 Other current liabilities			 Total current liabilities		 Long-term liabilities:			 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 (loss):			 Unrealized gain on other securities			 Unrealized loss on land revaluation			 Remeasurements of defined benefit plans			 Total accumulated other comprehensive income (loss)		 Subscription rights to shares		 Non-controlling interests		 Total net assets
Total liabilities and net assets

5As of March 31, 2016

As of September 30, 201649,191
114
3,296
710
223
7,689
61,22535,072
114
969
2,612
254
5,177
44,199

1,428
3,726
219
2,921
8,296
69,522

1,369
4,427
269
3,438
9,504
53,70410,00051,264
176,847(36,008)
202,104

10,00052,442
178,058(37,141)
203,358

2,350(7,856)(1,219)(6,724)542
621
196,543
266,066

2,131(7,990)(977)(6,837)482
620
197,624
251,328

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Second Quarter Ended September 30, 2016

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income		
Millions of yen
Six months ended		Six months ended
September 30, 2015		
September 30, 2016

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		 Other		 Total other income
Other expenses:		 Interest expenses		 Foreign exchange losses		 Other		 Total other expenses
Recurring profit
Extraordinary income:		 Gain on payback of insurance payments		 Gain on exchange from business combination		 Gain on negative goodwill		 Other		 Total extraordinary income
Extraordinary loss:		 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 attributable to non-controlling interests
Net income attributable to owners of parent

6

128,720
112,594
16,1269,586
6,540

132,209
115,674
16,534
10,2336,301

32106208
142
489

8115
82
104
310

5116
45
167
6,862

482
69
156
6,456

4—386
35
426

161
84
—
27274

48—
83
22
154
7,134

29
378
51
84
544
6,186

1,113
1,463
2,577
4,556
11
4,545

1,520
534
2,055
4,130
2
4,128

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Second Quarter Ended September 30, 2016

Consolidated Statements of Comprehensive Income
Millions of yen
Six months ended
Six months ended
September 30, 2015
September 30, 2016

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

7

4,556

4,130(286)131(154)4,401(219)
241
21
4,152

4,394
7

4,1502