February 8, 2019

COMSYS Holdings Corporation
Consolidated Financial Results for the Third Quarter Ended December 31, 2018
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:
Takashi Kagaya, 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: February 13, 2019
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 nine months ended December 31, 2018)(1) Consolidated Operating Results(Millions of yen, except per share data and percentages)

Net Sales

Operating Income

Net Income Attributableto Owners of Parent

Recurring Profit

Nine months ended December 31, 2018 ¥304,303

24.9%¥19,764

17.4%¥20,43619.4%¥18,272

55.4%

Nine months ended December 31, 201718.9

16,83853.0

17,11552.3

11,755

63.8

243,610Notes: 1. Comprehensive income: Nine months ended December 31, 2018: ¥16,229 million [24.0%]
Nine months ended December 31, 2017: ¥13,091 million [69.4%]
2. Percentages indicate the percentage change from the corresponding period of the previous fiscal year.

Net Income per ShareNet Income per Share (Diluted)

Nine months ended December 31, 2018

¥153.11¥152.51

Nine months ended December 31, 2017103.28102.87(2) Consolidated Financial Position(Millions of yen, except percentages)Total Assets

Net Assets

Equity Ratio

As of December 31, 2018

¥412,738¥293,257

70.3%

As of March 31, 2018

325,042

231,767

70.8(Reference) Shareholders’ Equity:
As of December 31, 2018: ¥290,260 million
As of March 31, 2018: ¥230,119 million
Note: The Company applied Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28, February 16, 2018) starting with theConsolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2019. Figures relating to the previous fiscal year are shown after theretrospective application of the said accounting standard.

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, 2018

¥ —¥25.00¥ —Year ending March 31, 2019—30.00—Year ending March 31, 2019 (Forecast)Year-End

Annual¥25.00¥50.00

30.00

60.00

Note: Most recently announced revisions to dividend forecast: No

3. Consolidated Earnings Forecast (for the fiscal year ending March 31, 2019)
Net SalesYear ending March 31, 2019

¥470,000

23.7%(Millions of yen, except per share data and percentages)

Operating Income

Recurring Profit

Net Income Attributable
Net Income per Shareto Owners of Parent¥34,000¥34,500¥27,000

Notes: 1. Most recently announced revisions to consolidated earnings forecast: No
2. Percentages indicate the percentage change from the previous fiscal year.

12.0%

12.4%

32.4%

¥221.42COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Third Quarter Ended December 31, 2018

*Notes:(1) Changes in significant subsidiaries during the period under review (changes to subsidiaries that would alter the scope ofconsolidation): Yes
Newly consolidated: One company (Company name) NDS Co., Ltd., Excluded from consolidation: Nil, (Company name) —(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: 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 December 31, 2018
141,000,000 shares
11,685,642 shares

As of March 31, 2018
141,000,000 shares
26,422,771 shares

Nine months ended December 31, 2018
119,340,113 shares

Nine months ended December 31, 2017
113,822,640 shares*This Quarterly Consolidated Financial Results report has not been subjected to quarterly review procedures by 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 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 impact of the reduction in the number of shares of treasury stock as a result of the share exchange implemented on October 1, 2018 was
taken into account for the calculation of the forecast figure for Net Income per Share.

2COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Third Quarter Ended December 31, 2018

Accompanying Materials
1. Qualitative Information Regarding Consolidated Financial Results for the Period under Review(1) Discussion of Operating Results
During the cumulative third quarter period (April 1, 2018 to December 31, 2018) of the current fiscal year ending March
31, 2019, the Japanese economy maintained a moderate recovery, including improvements in corporate earnings and theemployment environment, due in part to the effects of various policies implemented by the Japanese government and theBank of Japan. However, there is a need to monitor such factors as the impact that the outcome of trade issues has on theglobal economy, uncertainty in the economies overseas, and fluctuations in financial and capital markets.
In the information and communications field, the COMSYS Group’s principal area of activity, there wasexpansion in value-added services such as content provision amid an intensification in the competition among telecom
carriers over services. The upgrading of the mobile network was promoted to accommodate the sharply increasing, highervolume traffic accompanying the growth of today’s mobile society. 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 cloud technology, the internet of things (IoT), and artificial intelligence(AI), as well as policies for building national resilience, the development of the environment and energy business, andpreparation for the Tokyo Olympics and Paralympic Games.
The COMSYS Group took initiatives for top-line expansion, which included entering the renewable energybusiness, particularly solar power and biomass power construction projects. It also ventured into new business domains in
response to the rise in public-sector and ICT investment aimed at the development of a smart society, and it implemented
business integration with NDS Co., Ltd., SYSKEN Corporation, and Hokuriku Denwa Kouji Co., Ltd., effective October
1, 2018. Moreover, in addition to seeking to generate synergies from integration as early as possible, the Group worked toimprove profit by transferring personnel to growth businesses and implementing measures such as increasing construction
efficiency and cutting costs by promoting workstyle innovation.
Under these circumstances, orders received in the third quarter period increased 24.4% year on year to ¥362,134
million, and net sales rose 24.9% year on year to ¥304,303 million. From a profit perspective, operating income increased
by 17.4% year on year to ¥19,764 million, while net income attributable to owners of the parent increased 55.4% year onyear to ¥18,272 million.
(2) Discussion of Financial Position
Total assets as of December 31, 2018 amounted to ¥412,738 million, up ¥87,696 million compared with the end of theprevious fiscal year. This was mainly attributable to an increase in property and equipment. Liabilities increased by¥26,206 million compared with the end of the previous fiscal year, to ¥119,481 million. This was largely attributable to anincrease in short-term bank loans.
Net assets increased by ¥61,490 million compared with the end of the previous fiscal year, to ¥293,257 million.
This was primarily attributable to the increase in additional paid-in capital and a decrease in treasury stock associated witha share exchange for the acquisition of a consolidated subsidiary.
In accordance with each of the aforementioned factors, the equity ratio stood at 70.3%, compared with 70.8% 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, 2019 published in“COMSYS Holdings Announces Revision to Earnings Forecast” dated November 6, 2018.

3

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Third Quarter Ended December 31, 2018

2. Quarterly Consolidated Financial Statements and Important Notes(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, 2018

As of December 31, 201829,144
121,826

38,900114,631

24,607
803
5,919
(54)
182,246

46,514
5,287
17,561(110)
222,784

30,59147,592
24,564
102,748

40,583
66,10928,101
134,795

5,969
4,094
10,063

5,354
4,342
9,697

12,956
17,194(166)
29,983
142,796
325,042

26,001
19,806(346)
45,461
189,954412,738

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Third Quarter Ended December 31, 2018

Millions of yenLIABILITIES		 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			 Deferred gains or losses on hedges			 Unrealized loss on land revaluation			 Remeasurements of defined benefit plans			 Total accumulated other comprehensive loss		 Subscription rights to shares		 Non-controlling interests		 Total net assets
Total liabilities and net assets

5

As of March 31, 2018

As of December 31, 2018

59,749
106
7,815
2,873
724
11,563
82,832

53,271
19,349
326
5,252
1,140
15,434
94,774

1,369
7,263
271
1,537
10,441
93,274

1,369
13,678619
9,039
24,706
119,481

10,00060,883201,329(38,014)
234,199

10,00091,515
213,515(18,626)
296,403

3,795—(7,905)30(4,079)
513
1,134
231,767
325,042

1,871(2)(7,905)(106)(6,143)600
2,396
293,257
412,738

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Third Quarter Ended December 31, 2018

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income		
Millions of yen
Nine months ended		Nine months ended
December 31, 2017		December 31, 2018

Net sales
Cost of sales
Gross profits
Selling, general and administrative expenses
Operating income
Other income:		 Interest income		 Dividend income		 Rent income on noncurrent assets		 Other		 Total other income
Other expenses:		 Interest expenses		 Rent expenses		 Provision for allowance for doubtful receivables		 Other		 Total other expenses
Recurring profit
Extraordinary income:		 Gain on sales of investment securities		 Gain on sales of fixed assets		 Gain on negative goodwill		 Reversal of allowance for doubtful receivables		 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

243,610
209,923
33,686
16,848
16,838304,303
263,926
40,377
20,612
19,764

11
215
113
193
533

14
428
166
224
833

5
54
122
74
256
17,115

20
81
3
56
161
20,436

0
10—
913
9933

44
22
5,159
—
20
5,246

2930
7958
197
17,850

28
329
60
176
595
25,087

4,534
1,531
6,066
11,78428
11,755

4,835
1,951
6,786
18,30128
18,272

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Third Quarter Ended December 31, 2018

Consolidated Statements of Comprehensive Income		
Millions of yen
Nine months ended		Nine months ended
December 31, 2017		
December 31, 2018

Net income
Other comprehensive income (loss):			 Unrealized gain on other 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 the parent			 Comprehensive income attributable to non-controlling interests

7

11,78418,301

1,258
—48
1,306
13,091(1,930)(2)(137)(2,071)
16,22913,05733

16,20821

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Third Quarter Ended December 31, 2018

(3) Notes on the Quarterly Consolidated Financial Statements(Notes on Premise of a Going Concern)
Not applicable(Notes on a Significant Change in Shareholders’ Equity)
The balance of additional paid-in capital as of December 31, 2018 increased by ¥30,631 million compared with the end of
the previous fiscal year to ¥91,515 million. The balance of treasury stock as of December 31, 2018 decreased by ¥19,387
million compared with the end of the previous fiscal year to ¥18,626 million. The main factor was as outlined below.
(1) Share Exchange
The Company implemented share exchanges effective October 1, 2018 in which (I) the Company became the sole parent
company and NDS Co., Ltd. a wholly owned subsidiary; (II) the Company became the sole parent company and SYSKENCorporation a wholly owned subsidiary, and (III) the Company became the sole parent company and Hokuriku Denwa
Kouji Co., Ltd. a wholly owned subsidiary, and delivered a total of 16,509 thousand shares of treasury stock. As a result,additional paid-in capital during the third quarter period ended December 31, 2018 increased by ¥30,313 million andtreasury stock decreased by ¥24,501 million.
(2) Acquisition of Treasury Stock
Based on the resolution of the meeting of the Board of Directors held on May 8, 2018, the Company acquired 1,702
thousand shares of treasury stock during the period from May 9, 2018 until November 27, 2018. In addition, based on theresolution of the meeting of the Board of Director’s held on November 6, 2018, the Company acquired 361 thousand
shares of treasury stock during the period from November 7, 2018 until December 31, 2018. As a result, treasury stockduring the third quarter period ended December 31, 2018 increased by ¥5,999 million.
(Additional Information)
The Company applied Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28,February 16, 2018) starting with the Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March
31, 2019. As a result, deferred tax liabilities are included in investments and other assets, and deferred tax liabilities arepresented in long-term liabilities.

8