August 5, 2022

COMSYS Holdings Corporation
Consolidated Financial Results for the First Quarter Ended June 30, 2022
Under Japanese GAAP
Head Office:17-1, Higashigotanda 2-chome, Shinagawa-ku, Tokyo 141-8647, Japan
Stock Exchange Listings: Prime Market of Tokyo Stock Exchange (Securities code: 1721)
URL:
https://www.comsys-hd.co.jp
Representative:
Takashi Kagaya, President and Representative Director
For Inquiry:
Hidehiko Ozaki, Director and General Manager of Finance Department (Telephone:81-3-3448-7000)
Scheduled Filing of Quarterly Securities Report:
August 8, 2022
Scheduled Commencement of Dividend Payment: —Supplementary Materials on Quarterly Results:
Attached
IR Presentation on Quarterly Results:
Not scheduled
Amounts less than one million yen have been omitted.

1. Consolidated Financial Results (for the three months ended June 30, 2022)(1) Consolidated Operating Results(Millions of yen, except per share data and percentages)

Net Sales

Operating Profit

Ordinary Profit

Profit Attributable toOwners of Parent

Three months ended June 30, 2022

¥107,466(10.6)%¥3,560(57.3)%¥4,252(52.8)%¥2,692(54.6)%

Three months ended June 30, 2021

120,19014.88,342

129.3

9,003

115.3

5,926

105.0

Notes: 1. Comprehensive income: Three months ended June 30, 2022: ¥3,114 million [(45.0)%] Three months ended June 30, 2021: ¥5,660 million [62.4%]
2. Percentages indicate the percentage change from the corresponding period of the previous fiscal year.

Primary Earnings per Share

Diluted Earnings per ShareThree months ended June 30, 2022

¥22.03¥22.01Three months ended June 30, 2021

47.40

47.29

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

Total AssetsNet Assets

Equity Ratio

As of June 30, 2022

¥471,540¥338,764

70.7%

As of March 31, 2022

524,062

343,48964.5(Reference) Shareholders’ Equity:

As of June 30, 2022: ¥333,570 million

As of March 31, 2022: ¥338,031 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, 2022

¥ —¥45.00¥ —¥50.00¥95.00Year ending March 31, 2023

—50.00—50.00100.00Year ending March 31, 2023 (Forecast)Year-End

AnnualNote: Most recently announced revisions to dividend forecast: No

3. Consolidated Earnings Forecast (for the fiscal year ending March 31, 2023)
Net SalesYear ending March 31, 2023

¥590,000

0.2%

Operating Profit¥40,000(6.9)%(Millions of yen, except per share data and percentages)

Ordinary Profit¥40,500

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.

(8.0)%

Profit Attributable to Primary Earnings
Owners of Parentper Share¥27,000(7.6)%¥220.54COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the First Quarter Ended June 30, 2022

*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: Yes(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: Nob) 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(4) Number of shares issued (common shares)		
a) Number of shares issued (including treasury shares)b) Number of treasury shares		c) Average number of shares issued in the period

As of June 30, 2022
141,000,000 shares
19,176,718 shares

As of March 31, 2022
141,000,000 shares
18,575,585 shares

Three months ended June 30, 2022122,252,310 shares

Three months ended June 30, 2021
125,034,674 shares*This Quarterly Consolidated Financial Results report has not been subjected to quarterly review proceduresby certified public accountants or an audit corporation.
*Disclaimer concerning the Proper Use of Business Results Forecasts and Other Relevant Specific Items
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 a varietyof 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 “(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 report in theAccompanying Materials section on page 3.

2

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the First Quarter Ended June 30, 2022

Accompanying Materials
1. Qualitative Information Regarding Consolidated Financial Results for the Period under Review(1) Discussion of Operating Results
During the cumulative first quarter period (April 1, 2022 to June 30, 2022) of the current fiscal year ending March 31,
2023, the Japanese economy continued to face challenging conditions due to COVID-19. A recovery in the economy isexpected as social and economic activity begins to normalize with close attention being paid to case numbers and outbreaksof virus variants. However, it will be necessary to continue monitoring the soaring prices for raw materials due to theprolonged situation in Ukraine and other geopolitical risks, supply side constraints including shortages of various parts andmaterials, and turbulence in financial and capital markets.
As for the business environment surrounding the COMSYS Group, in the information and communications field
we observe the ongoing development of the fiber optic network, including the installation of 5G wireless base stations andthe High-Speed Wireless Environment Maintenance Promotion Project. This has been driven by the acceleration of thedigitalization of all of society with an urgent requirement for the development of information and communications
platforms, including 5G, as core infrastructure that is key to this digitalization. In the public and private sectors, investment
in social infrastructure has been proceeding. This includes boosting initiatives on renewable energy projects, particularly
solar power, with the promotion of government energy policy focused on decarbonization to achieve an environmentallyfriendly society. Other social infrastructure investment includes disaster prevention and mitigation measures in response toincreasingly severe and frequent natural disasters, as well as the preventative maintenance of aging facilities. In addition,with the concerted promotion of digitization by the public and private sectors, an expansion in ICT-related investment isexpected, including the development of data platforms related to healthcare, nursing care, education, infrastructure, anddisaster prevention, as well as the use of digital technologies such as AI, IoT, and cloud computing in these areas.
The COMSYS Group faced a challenging business environment in the communications infrastructure field,including a decrease in large-scale projects in areas such as the High-Speed Wireless Environment Maintenance Promotion
Project. In these circumstances, the COMSYS Group worked to improve operational efficiency utilizing shared IT platforms
and to increase productivity through a review of the business operation structure and other measures. In growth IT solutions
and social system-related fields, supply delays for construction parts and materials had a negative impact on construction
progress and activities focused on obtaining orders. However, the COMSYS Group increased orders by strengthening
Group-wide sales collaboration utilizing the virtual company structure and expanded business domains through M&A. The
Group concluded an agreement in May 2022 to acquire WORLD ECO Corporation, which became a subsidiary on July 1.
The COMSYS Group will continue working to strengthen its management base, including the optimization of formation inresponse to the business environment, DX-based structural reform, and intensifying reform to accommodate diverse
workstyles. The Group will also contribute to the realization of the society envisioned by the SDGs in line with its Basic
Policy on Sustainability (established in May 2022), while striving for the sustainable growth of the COMSYS Group.
Under these circumstances, orders received in the first quarter period decreased 1.8% year on year to ¥135,122
million, due in part to a decline from the high number of orders received for large-scale projects in the previous fiscal year, andnet sales decreased 10.6% year on year to ¥107,466 million. From a profit perspective, operating profit decreased by 57.3 %year on year to ¥3,560 million, while profit attributable to owners of parent decreased 54.6% year on year to ¥2,692 million.
(2) Discussion of Financial Position
Total assets as of June 30, 2022 amounted to ¥471,540 million, down ¥52,522 million compared with the end of the previous
fiscal year. This was mainly attributable to a decrease in notes receivable, accounts receivable from completed construction
and other. Liabilities decreased by ¥47,797 million compared with the end of the previous fiscal year, to ¥132,776 million.
This was largely attributable to a decrease in notes payable, accounts payable for construction contracts and other.
Net assets decreased by ¥4,725 million compared with the end of the previous fiscal year, to ¥338,764 million. Thiswas primarily attributable to the purchase of treasury shares.
In accordance with each of the aforementioned factors, the equity ratio stood at 70.7%, compared with 64.5% at
the end of the previous fiscal year.
(3) Discussion of Forward-Looking Information, Including Consolidated Earnings Forecasts
There are no changes in the consolidated earnings forecast for the full fiscal year ending March 31, 2023 published in“COMSYS Holdings Announces Revision to Earnings Forecast” dated May 12, 2022.
3COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the First Quarter Ended June 30, 2022

2. Quarterly Consolidated Financial Statements(1) Consolidated Balance Sheets
Millions of yen
As of March 31, 2022

ASSETS		 Current assets:			 Cash and deposits
35,107			 Notes receivable, accounts receivable			from completed construction contracts and other222,954			 Costs on construction contracts in progress
46,027			 Other inventories
5,544			 Other current assets
12,692			 Allowance for doubtful accounts(109)			 Total current assets
322,216		 Non-current assets:			 Property, plant and equipment:				 Buildings and structures, net
45,338				 Land70,714				 Other, net
29,329				 Total property, plant and equipment
145,382			 Intangible assets						 Goodwill
2,261				 Other intangible assets
5,587				 Total intangible assets
7,848			 Investments and other assets:				 Investment securities
22,890				 Other assets
26,135				 Allowance for doubtful accounts(411)				 Total investments and other assets
48,615			 Total non-current assets
201,846		 Total assets
524,0624

As of June 30, 2022

45,422
142,632
59,635
5,988
17,383(96)
270,965

44,92370,35728,670143,952
2,467
5,440
7,907
23,201
25,924(411)
48,714
200,574
471,540

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the First Quarter Ended June 30, 2022

Millions of yen

LIABILITIES		 Current liabilities:			 Notes payable, accounts payable			for construction contracts and other			 Short-term borrowings			 Income taxes payable			 Advances received on construction contracts in progress			 Allowances			 Other current liabilities			 Total current liabilities		 Non-current liabilities:			 Long-term borrowings			 Deferred tax liabilities for land revaluation			 Retirement benefit liability			 Provision for retirement benefits for directors (and other officers)			 Provision for environmental measures			 Other long-term liabilities			 Total non-current liabilities		 Total liabilities
NET ASSETS		 Shareholders’ equity:			 Share capital			 Capital surplus			 Retained earnings			 Treasury shares			 Total shareholders’ equity		 Accumulated other comprehensive income:			 Valuation difference on available-for-sale securities			 Deferred gains or losses on hedges			 Revaluation reserve for land			 Remeasurements of defined benefit plans			 Total accumulated other comprehensive income		 Share acquisition rights		 Non-controlling interests		 Total net assets
Total liabilities and net assets

5As of March 31, 2022

As of June 30, 2022

87,514
31,845
4,967
11,585
2,757
20,093
158,764

58,304
4,734
1,493
17,9593,135
25,580111,208486
1,213
14,200
628
400
4,880
21,809180,573329
1,213
14,179
519
400
4,926
21,567
132,776

10,00092,700279,157(40,851)
341,006

10,00092,702
275,729(42,340)
336,090

3,117
0(8,250)
2,157(2,975)
795
4,662
343,489
524,0623,549
28(8,250)
2,151(2,520)814
4,379
338,764
471,540

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the First Quarter Ended June 30, 2022

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income		
Millions of yen
Three months ended		Three months ended
June 30, 2021		
June 30, 2022

Net sales
Cost of sales
Gross profits
Selling, general and administrative expenses
Operating profit
Non-operating income:		 Interest income		 Dividend income		 Rental income from non-current assets		 Other		 Total non-operating income
Non-operating expenses:		 Interest expenses		 Rent expenses		 COVID-19 related expenses		 Foreign exchange losses		 Other		 Total non-operating expenses
Ordinary profitExtraordinary income:		 Gain on sales of investment securities		 Gain on sales of non-current assets		 Gain on sales of shares of subsidiaries and associates		 Other		 Total extraordinary income
Extraordinary losses:		 Loss on retirement of non-current assets		 Business structure reform expenses		 Loss on extinguishment of tie-in shares		 Special retirement expenses		 Other		 Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

6

120,190103,011
17,1788,836
8,342

107,466
94,67812,788
9,228
3,560

6564
71
141
784

5532
77
181
796

638
26
2526
122
9,003

8
31
28—
35
104
4,252

199
1—
35237

18
10218
37285

29—
55
3
12100
9,140
3,196
5,944
17
5,926

1551—
40
30
137
4,400
1,737
2,663
(29)
2,692

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the First Quarter Ended June 30, 2022

Consolidated Statements of Comprehensive Income
Millions of yen
Three months ended
Three months ended
June 30, 2021
June 30, 2022

ProfitOther comprehensive income:			 Valuation difference on available-for-sale securities			 Deferred gains or losses on hedges			 Remeasurements of defined benefit plans			 Total other comprehensive income (loss)
Comprehensive income		 (Breakdown)			 Comprehensive income attributable to owners of parent			 Comprehensive income (loss) attributable to non-controlling interests

7

5,944

2,663

(340)
(0)
56(284)
5,660

428
28(5)
451
3,114

5,639
20

3,147(33)