November 10, 2022

COMSYS Holdings Corporation
Consolidated Financial Results for the Second Quarter Ended September 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
Takashi Kagaya, President and Representative Director
Representative:
Hidehiko Ozaki, Director and General Manager of Finance Department (Telephone:81-3-3448-7000)
For Inquiry:
Scheduled Filing of Quarterly Securities Report: November 11, 2022
Scheduled Commencement of Dividend Payment: December 5, 2022
Attached
Supplementary Materials on Quarterly Results:
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, 2022)(1) Consolidated Operating Results(Millions of yen, except per share data and percentages)

Net Sales

Operating Profit

Profit Attributable toOwners of Parent

Ordinary Profit

Six months ended September 30, 2022

¥230,867(9.0)%¥ 9,474(47.6)%¥10,209(45.4)%¥ 6,537(47.2)%

Six months ended September 30, 2021

253,746

8.3

18,07945.8

18,711

44.7

12,375

38.5

Notes: 1. Comprehensive income: Six months ended September 30, 2022: ¥6,397 million [(49.8)%]
Six months ended September 30, 2021: ¥12,741 million [20.0%]
2. Percentages indicate the percentage change from the corresponding period of the previous fiscal year.

Primary Earnings per Share

Diluted Earnings per ShareSix months ended September 30, 2022

¥53.45¥53.41

Six months ended September 30, 2021

99.1999.00(2) Consolidated Financial Position(Millions of yen, except percentages)

Total Assets

Net Assets

Equity Ratio

As of September 30, 2022

¥491,640¥342,029

68.5%

As of March 31, 2022

524,062

343,489

64.5(Reference) Shareholders’ Equity:

As of September 30, 2022: ¥336,853 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
—

50.00

100.00Year 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

¥580,000(1.5)%(Millions of yen, except per share data and percentages)

Operating Profit

Ordinary Profit¥38,000 (11.6)%¥39,000 (11.4)%

Notes: 1. Most recently announced revisions to consolidated earnings forecast: Yes
2. For fiscal-year figures, percentages indicate the percentage change from the previous fiscal year.

Profit Attributable to Primary Earnings
Owners of Parentper Share¥26,000 (11.0)%¥213.44COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Second Quarter Ended September 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 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, 2022
141,000,000 shares
19,185,696 shares

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

Six months ended September 30, 2022
122,305,469 shares

Six months ended September 30, 2021
124,765,183 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
1. Forward-looking statements including earnings forecasts contained in this document are based on certain reasonable assumptions and beliefs
in light of information currently available to management. Readers are advised that actual results may differ materially from forecasts due
to a variety of factors. With respect to the conditions that underpin earnings forecasts as well as cautionary statements regarding the properuse 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 the Accompanying Materials section on page 4.
2. The Company plans to stream a video of the results briefing for institutional investors and analysts on Wednesday, November 16, 2022
(available only in Japanese). The materials for the briefing will be uploaded to the corporate website before the video is streamed.

2

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

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, 2022 to September 30, 2022), the Japanese economy was expected torecover as the impact of COVID-19 weakened and social and economic activity began to normalize. However, it wasnecessary to continue monitoring case numbers and outbreaks of virus variants, the soaring prices for raw materials due tothe prolonged situation in Ukraine and the rapid depreciation of the yen, supply side constraints including shortages ofvarious parts and materials, and turbulence in financial and capital markets.
As for the business environment surrounding the COMSYS Group, in the communications infrastructure field, thedevelopment and expansion of ultra-high-speed, high-capacity 5G continued as part of the infrastructure for realizing theJapanese government’s Vision for a Digital Garden City Nation. In the social infrastructure field, there were three trends:
anticipated expansion of domestic investment to further promote disaster prevention and mitigation; national resiliencemeasures in response to increasingly severe and frequent natural disasters; and the effort to achieve carbon neutrality,
including the adoption of renewable energy as the main source of power. In the IT solutions field, there was expansion in
investment related to ICT including AI, IoT, and cloud computing, driven by the need to strengthen data infrastructure
essential for building a digital society amid the transformation of society as a whole. The development of digital
infrastructure related to government administration, healthcare, education, and disaster prevention also moved forward.
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, as well as in mobile-related construction. In these circumstances, the COMSYS Group worked to increase productivity
by optimizing the use of Group resources and integrating operations through a Group-wide standardization of constructionrelated systems. In the growth IT solutions and social system-related fields, there were negative factors such as delays in theprogress of construction due to delayed supply of parts and materials, and a decline in profitability due to soaring prices of raw
materials. However, the Group worked to increase orders received by strengthening Group-wide sales collaboration using thevirtual company structure and to expand business domains through M&A, as WORLD ECO Corporation became asubsidiary in July 2022. The Group will continue working to strengthen its management foundation, including the operationalorganization, in response to the business environment, DX-based structural reform, and ongoing workstyle reform toaccommodate diverse workstyles. The Group also established the Sustainability Committee in July 2022 and will help to build
the global society envisioned by the SDGs while striving for the sustainable growth of the COMSYS Group.
Under these circumstances, orders received in the second quarter period decreased 1.7% year on year to ¥267,805million, due in part to the decline from the high level of large-scale project orders received in the previous fiscal year, and net sales
decreased 9.0% year on year to ¥230,867 million. From a profit perspective, operating profit decreased by 47.6% year on year to¥9,474 million, while profit attributable to owners of parent decreased 47.2% year on year to ¥6,537 million.
(2) Discussion of Financial Position
Total assets as of September 30, 2022 amounted to ¥491,640 million, down ¥32,422 million compared with the end of theprevious fiscal year. This was mainly attributable to a decrease in notes receivable, accounts receivable from completed
construction and other. Liabilities decreased by ¥30,962 million compared with the end of the previous fiscal year, to¥149,610 million. This was largely attributable to a decrease in notes payable, accounts payable for construction contracts
and other.
Net assets decreased by ¥1,460 million compared with the end of the previous fiscal year, to ¥342,029 million.
This was primarily attributable to the purchase of treasury shares, which more than offset the increase in earnings resulting
from the recording of profit attributable to owners of parent.
In accordance with each of the aforementioned factors, the equity ratio stood at 68.5%, compared with 64.5% at
the end of the previous fiscal year.

3

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

(3) Discussion of Forward-Looking Information, including Consolidated Earnings Forecasts
The full-year consolidated earnings forecast for the fiscal year ending March 31, 2023 has been downwardly revised from thepreviously published earnings forecast in light of recent trends, including delays in the progress of construction due to supply
delays of construction parts and materials and a decrease in profitability due to soaring prices of raw materials. Please see“COMSYS Group Announces Revision of Consolidated Earnings Forecast” published on November 10, 2022 for details(available only in Japanese).
The COMSYS Group will continue working for a recovery in earnings, by rigorously managing construction
progress, reducing costs, and taking other measures.

4COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Second Quarter Ended September 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			 Inventories:				 Costs on construction contracts in progress
46,027				 Other
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
524,0625

As of September 30, 2022

41,645151,099
72,4106,536
18,308(106)
289,892

44,39670,371
28,724143,492
2,193
5,248
7,442
25,22826,006(422)50,812
201,747
491,640

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

6

As of March 31, 2022

As of September 30, 2022

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

64,991
19,415
3,525
21,073
3,478
15,615
128,100

486
1,213
14,200
628
400
4,880
21,809180,573

238
1,213
14,334
537
400
4,786
21,510149,610

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

10,00093,113
279,573(42,794)
339,893

3,117
0(8,250)2,157(2,975)
795
4,662
343,489
524,0622,974
25(8,250)
2,209(3,039)
838
4,337
342,029
491,640

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

(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, 2021		
September 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		 Other		 Total non-operating expenses
Ordinary profit
Extraordinary income:		 Gain on sales of investment securities		 Gain on sales of non-current assets		 Gain on sales of shares of subsidiaries and associates		 Gain on transfer of business		 Other		 Total extraordinary income
Extraordinary losses:		 Loss on retirement of non-current assets		 Special retirement expenses		 Business structure improvement expenses		 Other		 Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

7253,746
218,486
35,25917,18018,079230,867
203,497
27,36917,895
9,474

11
588
136
216
951

11
555
142
259
969

11
74
82
150
319
18,711

15
56
63
99
234
10,209

212
16
—210
40
479

18
14218
—
42
294

47
21
156
98
323
18,867
6,446
12,42044
12,375

81
70
67
48
267
10,236
3,772
6,464
(72)
6,537

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

Consolidated Statements of Comprehensive Income
Millions of yen
Six months ended
Six months ended
September 30, 2021
September 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

812,420

6,464

265
054
321
12,741

(144)
2552
(67)
6,397

12,691
49

6,472
(75)

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

(Significant Subsequent Event)Acquisition of Treasury Stock
The meeting of the Board of Directors held on November 10, 2022 resolved as follows on the matters related to theacquisition of treasury stock in accordance with Article 156 of Japan’s Companies Act, as applied pursuant to paragraph 3,
Article 165 of the Act.
(a) Reason for Purchase
The Company will acquire treasury stock in order to facilitate enhancement of shareholder returns and the execution offlexible capital policies that respond to changes in the corporate environment.
(b) Details of Matter Related to the Acquisition
1) Type of Shares to be Acquired2) Total Number of Shares to be Acquired3) Total Acquisition Price
4) Acquisition Period5) Method of Acquisition

Common shares of the Company
Up to 1,000,000 shares
Up to ¥2,000,000,000
From November 11, 2022 to March 31, 2023
Market purchase on the Tokyo Stock Exchange9