February 7, 2020

COMSYS Holdings Corporation
Consolidated Financial Results for the Third Quarter Ended December 31, 2019
Under Japanese GAAP
Company name:
Stock exchange listing:Stock code:
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COMSYS Holdings Corporation
First Section of Tokyo Stock1721
https://www.comsys-hd.co.jp/english/index.html
Takashi Kagaya, President and Representative Director
Hidehiko Ozaki, Director and General Manager of Finance & Accounting Department
Tel. +81-3-3448-7000
Scheduled date for filing of securities report:
February 12, 2020
Scheduled date of commencement of dividend payment:–Supplementary documents for quarterly results:
Attached
Quarterly results briefing:
None(Amounts of less than one million yen are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2019 (April 1, 2019 – December 31, 2019)(Percentages show year-on-year changes.)(1) Consolidated Results of Operations (Accumulated Total)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Nine months ended

Million yen%

Million yen%

Million yen%

Million yen%

December 31, 2019
December 31, 2018374,769
304,303

23.2
24.9

21,15819,7647.1
17.4

22,21920,436

8.7
19.4

14,45918,272(20.9)
55.4(Note) Comprehensive income:

15,046 million yen (-7.3%) for the nine months ended December 31, 201916,229 million yen (24.0%) for the nine months ended December 31, 2018

Earnings per share(basic)
Nine months ended

Earnings per share(diluted)

Yen

December 31, 2019
December 31, 2018112.60153.11(2) Consolidated Financial Position
Total assets
As ofYen

112.30152.51

Net assets

Million yen

December 31, 2019
March 31, 2019

440,333
439,926

Equity ratio

Million yen%

303,943
301,459(Reference) Shareholders’ equity:

68.3
67.8

As of December 31, 2019:
As of March 31, 2019:

300,864 million yen
298,373 million yen

2. Dividends
Dividend per share
End offirst quarterEnd ofsecond quarter

Yen

End ofthird quarter

Yen

Year-end

Yen

Year ended March 31, 2019–30.00–Year ending March 31, 2020

–

35.00

–

Year ending March 31, 2020
(forecasts)

AnnualYen

Yen

30.00

60.00

40.00

75.00

(Note) Revisions to dividend forecasts published most recently: None

3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2020 (April 1, 2019 – March 31, 2020)(Percentage figures represent the changes from the previous year.)Net sales

Operating profit

Ordinary profit

Million yen% Million yen%
Million yen
Year ending March
540,000
12.1
38,0007.7
38,50031, 2020(Note) Revisions to financial forecasts published most recently: None

Profit attributable toowners of parent%

Million yen%

6.7

25,500(9.0)

Profitper shareYen

198.13

* Notes(1) Changes of important subsidiaries during the period(changes of specific subsidiaries resulting in a change in the scope of consolidation): None
(2) Application of particular accounting procedures to the preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policies and changes or restatement of accounting estimates(i) Changes in accounting policies caused by revision of accounting standards:(ii) Changes in accounting policies other than (i):Yes(iii) Changes in accounting estimates:None(iv) Restatement:
None

None

(4) Number of shares outstanding (common shares):(i) Number of shares outstanding at end of period (including treasury shares)
As of December 31, 2019:
141,000,000 shares
As of March 31, 2019:
141,000,000 shares(ii) Number of treasury shares at end of period
As of December 31, 2019:13,585,447 shares
As of March 31, 2019:12,299,356 shares(iii) Average number of shares outstanding during the term
Nine months ended December 31, 2019: 128,419,419 shares
Nine months ended December 31, 2018: 119,340,113 shares* This Quarterly Consolidated Financial Results report has not been subjected to quarterly review procedures by certified public accountants or anaudit 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 in lightof information currently available to management. Readers are advised that actual results may differ materially from forecasts due to a variety offactors. 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 the Accompanying
Materials section on page 3.

Accompanying Materials
1. Qualitative Information Regarding Consolidated Financial Results for the Period under Review(1) Details of Operating Results
In the first nine months ended December 31, 2019, the Japanese economy was expected to recover moderately on theback of continued improvements in the employment and income conditions and corporate earnings and the effects ofeconomic policies. However, there were uncertainties about trends in overseas economies, including trends in tradeissues, the outlook for the Chinese economy and the situation in the Middle East, the effects of changes in financial andcapital markets, and trends in the domestic economy following the consumption tax hike.
In the information and communications field, where the COMSYS Group operates, competition amongtelecommunications carriers is intensifying, chiefly reflecting the entry of new businesses and the revision to theTelecommunications Business Act, and value-added services, including content, are expanding. In this environment,
mobile networks are advancing to deal with large amounts of traffic, which is increasing rapidly. Investment in social
infrastructure is expected to expand in both the public and private sectors, including investment related to the National
Resilience initiative, including disaster prevention and disaster mitigation measures in anticipation of serious natural
disasters, renewable energy policies and the Tokyo Olympics and Paralympics. Investment in ICT utilizing innovations
such as IoT, artificial intelligence (AI) and 5th generation mobile communications (5G) is also expected to increase.
The COMSYS Group sought to expand its top line in an effort to expand the renewable energy business,particularly the installation of solar power generation facilities and the building of biomass power generation facilities,
and new business domains that respond to increasing public investment and ICT investment for a smart society.
Meanwhile, the Group sought to promptly create synergies from the consolidation of new companies and strove toimprove profitability, particularly improving efficiency in construction work and cutting expenses, by allocating humanresources to growth businesses and changing working practices.
These initiatives resulted in orders of 452.97 billion yen (up 25.1% year on year) and net sales of 374.76 billion
yen (increasing 23.2% year on year) on a consolidated basis in the first nine months under review. Operating profit
stood at 21.15 billion yen (rising 7.1% year on year). Profit attributable to owners of parent came to 14.45 billion yen(falling 20.9% year on year). The main reason for the year-on-year decrease in profit attributable to owners of parent
was a gain on negative goodwill purchase posted as extraordinary income in the previous fiscal year as a result of theconsolidation of new companies.

(2) Details of Financial Position
At the end of the first nine months under review, total assets rose 0.4 billion yen from the end of the previous fiscalyear, to 440.33 billion yen, chiefly reflecting an increase in property, plant and equipment. Liabilities decreased 2.07
billion yen, to 136.39 billion yen, chiefly due to a fall in notes payable, accounts payable for construction contracts andother.
Net assets increased 2.48 billion yen, to 303.94 billion yen, mainly due to an increase in retained earnings as aresult of profit attributable to owners of parent and the purchase of treasury shares.
The equity ratio stood at 68.3% (67.8% at the end of the previous fiscal year).

(3) Information on the Future Outlook, Including Consolidated Business Results Forecasts
The consolidated business performance forecast for the fiscal year ending March 31, 2020 remains unchanged from thebusiness performance forecast announced on May 10, 2019.

- 1 -2. Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
End of previous fiscal year
(As of March 31, 2019)
AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed
construction contracts and other
Costs on construction contracts in progress
Other inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 2 -End of third quarter of thefiscal year under review(As of December 31, 2019)

28,61853,277

169,186

116,627

28,983
4,576
15,783(136)
247,01348,882
5,863
18,150(81)
242,718

41,84765,74828,148135,744

43,45567,762
28,230139,448

4,999
4,606
9,606

4,176
4,093
8,270

27,712
20,205(356)
47,561
192,912439,926

29,861
20,390(356)
49,896
197,615440,333

End of previous fiscal year
(As of March 31, 2019)
Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts andotherShort-term borrowings
Income taxes payable
Advances received on construction contracts in progress
Allowances
Other
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 otherofficers)
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Other accumulated comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for landRemeasurements of defined benefit plans
Total other accumulated comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets- 3 -(Million yen)
End of third quarter of the
fiscal year under review(As of December 31, 2019)

77,68557,316

8,543
6,017
4,045
1,251
18,583
116,125

31,983
658
7,694
979
16,843
115,476

3,212
1,369
13,5081,301
1,369
13,633

622

580

3,628
22,340138,466

4,028
20,914
136,390

10,00091,549223,261(20,539)304,271

10,00092,149229,376(25,226)
306,2992,810(0)(7,905)(802)(5,898)657
2,428
301,459
439,9263,334
3(7,905)(867)(5,434)599
2,479
303,943
440,333

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income(First nine-month period)(Million yen)First nine-month period ofprevious fiscal year
(April 1, 2018 –December 31, 2018)
304,303
263,926
40,377
20,612
19,764

Net sales
Cost of sales
Gross profit
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
Rental expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Gain on sales of non-current assets
Compensation income
Gain on negative goodwill
OtherTotal extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Extra retirement payments
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent- 4 -First nine-month period of
the fiscal year under review(April 1, 2019 –December 31, 2019)374,769
327,520
47,24926,091
21,158

14
428
166
224
833

20
707
256
308
1,292

20
81
60
161
20,436

38
134
57
231
22,219

44
22–
5,159
20
5,246

39
25
84–
20170

28329
60
176
595
25,087
6,786
18,30128
18,272

44–80
56
180
22,2097,634
14,575
115
14,459

Quarterly Consolidated Comprehensive Income(First nine-month period)(Million yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income (loss)
Comprehensive income
Comprehensive income attributable to owners of parent
Comprehensive income (loss )attributable to non-controllinginterests- 5 -First nine-month period ofprevious fiscal year
(April 1, 2018 –December 31, 2018)
18,301First nine-month period of
the fiscal year under review(April 1, 2019 –December 31, 2019)14,575(1,930)(2)(137)(2,071)
16,22916,208

531
3
(64)
470
15,046
14,92321123