May 9, 2017

COMSYS Holdings Corporation
Consolidated Financial Results for the Fiscal Year Ended March 31, 2017
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 Annual General Meeting of Shareholders: June 29, 2017
Scheduled Commencement of Dividend Payment: June 30, 2017
Scheduled Filing of Securities Report:
June 29, 2017
Supplementary Materials on Financial Results:
Attached
IR Presentation on Financial Results:
Scheduled (For Institutional Investors and Analysts)
Amounts less than one million yen have been omitted.

1. Consolidated Financial Results (for the fiscal year ended March 31, 2017)(1) Consolidated Operating Results
Net SalesYear ended March 31, 2017
Year ended March 31, 2016

¥334,163
320,654(Millions of yen, except per share data and percentages)

Operating Income
4.2%
(2.4)

¥25,036
23,849Net Income Attributable to
Owners of Parent

Recurring Profit

5.0%(13.8)¥25,341
24,223

4.6%(13.9)¥14,485
15,420(6.1)%(8.0)

Notes: 1. Comprehensive income:Year ended March 31, 2017: ¥15,399 million [22.7%]
Year ended March 31, 2016: ¥12,546 million [ (38.0)%]
2. Percentages indicate the percentage change from the corresponding period of the previous fiscal year.
Net Income per ShareNet Income per Share(Diluted)

Return on Equity¥129.96
136.75¥129.52
136.187.3%
7.9

Year ended March 31, 2017
Year ended March 31, 2016
(Reference) Equity in earnings of affiliates:

Year ended March 31, 2017: ¥— million

Recurring Profit/ Total Assets

Operating Margin

9.2%
9.1

7.5%
7.4

Year ended March 31, 2016: ¥— million(2) Consolidated Financial Position(Millions of yen, except per share data and percentages)

Total Assets
As of March 31, 2017
As of March 31, 2016

Net Assets¥284,367
266,066(Reference) Shareholders’ equity:

Equity Ratio¥202,943
196,543

Net Assets per Share
70.9%
73.4

As of March 31, 2017: ¥201,717 million¥1,848.33
1,764.13

As of March 31, 2016: ¥195,379 million(3) Consolidated Cash Flows

Year ended March 31, 2017
Year ended March 31, 2016

(Millions of yen)

Cash Flows fromOperating Activities¥12,545
13,089Cash Flows from
Investing Activities¥(9,940)(7,303)

Cash Flows from
Financing Activities¥(12,178)(11,307)

2. Cash Dividends for Shareholders of Common Stock(Millions of yen, except per share data and percentages)

Cash Dividends per ShareYear ended March 31, 2016
Year ended March 31, 2017
Year ending March 31, 2018 (Forecast)

Total
Dividends(Annual)End of
1st QuarterEnd of2nd QuarterEnd of3rd Quarter

Year-End

Annual¥ ———¥15.00
20.00
25.00

¥ —
—
—

¥20.0020.00
25.00¥35.0040.00
50.00

3. Consolidated Earnings Forecast (for the fiscal year ending March 31, 2018)
Net Sales

Cash and Cash Equivalents
at End of Year
¥20,879
28,818Operating Income¥3,902
4,406

Consolidated Basis
Dividend
PayoutRatio

Ratio of
Dividends to
Net Assets

25.6%
30.8
29.5

2.0%
2.2

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

Recurring Profit

Net income attributable
Net Income per Shareto owners of parent

Six months ending September 30, 2017
¥140,000
5.9%¥ 7,500 19.0%¥ 7,700 19.3%¥ 5,000 21.1%¥ 45.81Year ending March 31, 2018
350,000
4.7
27,0007.8
27,5008.5
18,500 27.7
169.52Note. For fiscal-year figures, percentages indicate the percentage change from the previous fiscal year. For first-half figures, percentages indicate the percentagechange from the corresponding half of the previous fiscal year.

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2017

*Notes:(1) Changes in significant subsidiaries during the period under review (changes to subsidiaries that would alter the scope of
consolidation): No(2) 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(3) 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 March 31, 2017
141,000,000 shares
31,865,224 shares

As of March 31, 2016
141,000,000 shares
30,248,743 sharesYear ended March 31, 2017
111,462,585 sharesYear ended March 31, 2016
112,765,680 shares(Reference) Summary of Non-Consolidated Financial Results
Non-Consolidated Financial Results (for the fiscal year ended March 31, 2017)(1) Non-Consolidated Operating Results
Year ended March 31, 2017
Year ended March 31, 2016

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

Operating Revenues

Operating Income

Recurring Profit¥9,972
4,359¥8,985¥3,422¥8,9653,417

128.8%(20.7)

162.5%(25.8)

162.4%(26.1)Net Income¥8,921
3,364

165.2%(27.8)

Note: Percentages indicate the percentage change from the corresponding period of the previous fiscal year.
Net Income per ShareNet Income per Share (Diluted)¥79.9829.81

Year ended March 31, 2017
Year ended March 31, 2016¥79.71
29.69(2) Non-Consolidated Financial Position(Millions of yen, except per share data and percentages)

Total Assets
As of March 31, 2017
As of March 31, 2016
(Reference) Shareholders’ equity:

Net Assets¥ 90,968
137,528

Equity Ratio¥70,287
69,604As of March 31, 2017: ¥69,709 million

Net Assets per Share
76.6%
50.2

¥638.51623.07

As of March 31, 2016: ¥69,061 million<Reason for Disparities in the Non-Consolidated Earnings from the Previous Fiscal Year>
During the current fiscal year, dividend income from consolidated subsidiaries increased, causing significant disparities with the figures for theprevious fiscal year across the board for operating revenues, operating income, recurring profit, net income, net income per share and net income pershare (diluted).
*This Consolidated Financial Results report is not subject to audit procedures.
*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 of
earnings forecasts, please refer to “(1) Operating Results” under “1. Business Review” of this Consolidated Financial Results report in the
Accompanying Materials section on page 3.
2. COMSYS Holdings Corporation plans to hold an IR presentation on its financial results for institutional investors and analysts on Friday,
May 12, 2017. Other materials distributed during the IR presentation will be posted on the Company’s website in a timely manner after
the presentation.

2

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2017

Accompanying Materials
1. Business Review(1) Operating Results
During the fiscal year ended March 31, 2017 (April 1, 2016 to March 31, 2017), the Japanese economy was expected toexperience a moderate recovery, including improvements in corporate earnings and the employment environment, due inpart to the effects of various policies implemented by the Japanese government and the Bank of Japan. However, due touncertainty in the economy overseas, such as the economic slowdown in emerging countries in Asia, particularly China,
the problem of the United Kingdom leaving the European Union (EU), and the change of administration in the UnitedStates, the outlook remained uncertain, and there is concern over the impact these issues will have on the Japanese
economy.
In the information and communications field, the COMSYS Group’s principal area of activity, the construction of amobile network environment was promoted to accommodate the sharply increasing, higher-volume traffic accompanying thediversification and added functionality of smartphones and tablets, in addition to the development of broadband focused onconversion to fiber optics and the advance of globalization. Moreover, in both the public and private sectors, expansion was
anticipated in social infrastructure investment aimed at new innovations utilizing information and communication technology(ICT). This includes the internet of things (IoT), wherein everything is connected to the internet, 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 the Tokyo Olympics and Paralympic Games.
The COMSYS Group took initiatives for top-line expansions, which included making efforts in the green innovation
business, including the solar construction business, venturing into new business domains in response to the increase in public
investment and ICT investment focused on the smart society, and implementing M&As. The Group also endeavored to
improve profitability through such means as moving personnel into growth business sectors, improving construction efficiency,
and cutting costs.
Under these circumstances, orders received in the fiscal year under review increased 11.5% year on year to¥370,198 million, and net sales rose 4.2% to ¥334,163 million.
From a profit perspective, operating income increased by 5.0% year on year to ¥25,036 million due to increased
productivity and other benefits resulting from structural reform. However, net income attributable to owners of the parent
declined by 6.1% year on year to ¥14,485 million because the Group recorded amortization of goodwill as an
extraordinary loss.

3

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2017

(2) Financial Position(a) Assets
Current assets as of March 31, 2017 stood at ¥167,166 million, ¥11,614 million higher than at the end of the previous fiscal year.
This was mainly attributable to a ¥11,762 million increase in notes and accounts receivable – trade. Fixed assets as of March 31,2017 stood at ¥117,201 million, ¥6,686 million higher than at the end of the previous fiscal year. This was mainly attributable toan increase of ¥14,090 million in property and equipment, a ¥2,321 million decrease in intangible fixed assets and a ¥5,081
million decrease in investments and other assets.
As a result, total assets amounted to ¥284,367 million as of March 31, 2017, an increase of ¥18,301 million comparedwith the end of the previous fiscal year.
(b) Liabilities
Current liabilities as of March 31, 2017 stood at ¥71,289 million, up ¥10,063 million compared with the previous fiscal yearend. This was mainly attributable to an increase of ¥6,386 million in accounts payable – trade and a ¥4,001 million increase indeposits received in other current assets. As of March 31, 2017, long-term liabilities amounted to ¥10,134 million, ¥1,837
million higher compared with the end of the previous fiscal year. This was mainly attributable to a ¥897 million increase indeferred income taxes and a ¥628 million increase in net defined benefit liability.
As a result, total liabilities amounted to ¥81,423 million, an increase of ¥11,901 million compared with the end of theprevious fiscal year.
(c) Net assets
Net assets stood at ¥202,943 million as of March 31, 2017, an increase of ¥6,400 million compared with the end of the previous
fiscal year. This was mainly due to a ¥9,347 million increase in retained earnings after accounting for the current fiscal year’s net
income and a decline in net assets due to the acquisition of treasury stock.
As of the end of the fiscal year under review, the equity ratio stood at 70.9%, down from 73.4% as of March 31, 2016.

(3) Cash Flow
Cash and cash equivalents stood at ¥20,879 million at the end of the fiscal year, a decrease of ¥7,938 million, or 27.5%,
compared with the end of the previous fiscal year.
The principal factors underpinning movements in each of the Group’s major cash flows for the fiscal year ended
March 31, 2017 are presented as follows.
(a) Cash flows from operating activities
Net cash provided by operating activities stood at ¥ 12,545 million compared with net cash provided by operating activities of¥13,089 million for the previous fiscal year. The major cash inflows were income before income taxes and other adjustments to
net income of ¥22,807 million and depreciation and amortization of ¥5,723 million. Major cash outflows for the fiscal year
ended March 31, 2017 included income taxes paid of ¥8,351 million and receivables – trade of ¥7,694 million.
(b) Cash flows from investing activities
Net cash used in investing activities totaled ¥9,940 million for the fiscal year under review compared with net cash of ¥7,303
million used in investing activities in the previous fiscal year. The major components were acquisitions of property andequipment of ¥8,864 million and acquisitions of intangible fixed assets of ¥1,171 million.
(c) Cash flows from financing activities
Net cash used in financing activities was ¥12,178 million for the fiscal year ended March 31, 2017, compared with ¥11,307
million used in financing activities in the previous fiscal year. Acquisition of treasury stock amounted to ¥8,022 million,
while cash dividends totaled ¥4,435 million.

4

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2017(4) Outlook for fiscal year ending March 31, 2018
In the consolidated earnings forecasts for the COMSYS Group for the year ending March 31, 2018, despite the trend of anincrease in public and private-sector demand for social infrastructure investment focused on Japan’s Building National
Resilience strategy, environmental and energy projects, and the Tokyo Olympic and Paralympic Games, orders received are
expected to fall due to the impact from the completion of large-scale projects in the NTT Business and anticipated orders
already received and recorded. Sales are forecast to rise due to the continuing high volume of work in progress carried overfrom the current period.
From a profit perspective, due to the promotion of structural reform initiated to date, as well as efforts to increase
construction efficiency and effect cost reductions, profit is expected to rise.
Consolidated Earnings Forecast(Millions of yen, except percentages)

Year ended March 31, 2017

Year ending March 31, 2018

ChangeOrders received¥370,198¥360,000(2.8)%Net sales

334,163

350,000

4.7

Gross profits

45,72347,5003.9

Operating income

25,03627,000

7.8

Recurring profit

25,341

27,5008.5

Net income attributable to owners of parent

14,48518,50027.7

2. Basic Approach to Selection of Accounting Standard
The COMSYS Group’s policy for the time being is to use Japanese GAAP for the preparation of its consolidated financial
statements because its business operations are primarily carried out in Japan, and comparison with other Japanese companies
is thus facilitated.

5

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2017

3. Consolidated Financial Statements(1) Consolidated Balance Sheets
Millions of yen
As of March 31, 2016
As of March 31, 2017

ASSETS
		 Current assets:
			 Cash and cash equivalents
			 Notes and accounts receivable—trade
			 Lease investment assets
			 Accumulated cost of construction in progress
			 Merchandise			 Materials and supplies
			 Deferred income taxes
			 Other current assets
			 Less: Allowance for doubtful receivables
			 Total current assets
		 Fixed assets:
			 Property and equipment:				 Buildings and structures					 Less: Accumulated depreciation					 Buildings and structures, net				 Machinery, vehicles and equipment					 Less: Accumulated depreciation					 Machinery, vehicles and equipment, net				 Land				 Lease assets					 Less: Accumulated depreciation					 Lease assets, net				 Construction in progress				 Total property and equipment
			 Intangible assets				 Goodwill				 Other intangible assets				 Total intangible assets
			 Investments and other assets:				 Investment securities				 Long-term loans receivable				 Deferred income taxes				 Net defined benefit asset				 Other assets				 Less: Allowance for doubtful receivables				 Total investments and other assets
			 Total fixed assets
		 Total assets

6

28,930102,559
2,662
15,261
112
390
3,152
2,533
(51)
155,551

20,961
114,322
2,572
19,617
77
518
3,587
5,543
(34)
167,166

54,120(26,217)
27,902
18,636(14,034)
4,601
39,265
565
(224)
341
767
72,87856,994(28,052)
28,94230,355(16,934)
13,42040,186
523
(270)
253
4,166
86,968

2,935
4,055
6,990

666
4,002
4,669

10,460
8,033
319
9,094
4,758
(2,020)30,645110,514
266,066

11,154
1,067
333
10,082
4,510(1,585)25,563
117,201
284,367

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2017

Millions of yen
As of March 31, 2016
As of March 31, 2017

LIABILITIES		 Current liabilities:
			 Accounts payable—trade
			 Short-term bank loans
			 Income taxes payable			 Advances received on construction in progress			 Allowance for warranty work on construction projects
			 Allowance for losses on construction contracts
			 Other current liabilities
			 Total current liabilities
		 Long-term liabilities:
			 Deferred income taxes
			 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:			 Unrealized gain on other securities
			 Revaluation reserve for land
			 Remeasurements of defined benefit plans
			 Total accumulated other comprehensive income
		 Subscription rights to shares
		 Non-controlling interests
		 Total net assets
Total liabilities and net assets

749,191
114
3,296
710
202
—
7,711
61,22555,577
113
2,088
1,291
206
297
11,712
71,289

2,186
1,428
3,726
219
735
8,296
69,522

3,084
1,369
4,355
257
1,068
10,13481,423

10,00051,264
176,847(36,008)
202,104

10,00052,525
186,195(41,028)
207,692

2,350(7,856)(1,219)(6,724)542
621
196,543
266,0662,666(7,990)(650)(5,974)578
647
202,943284,367

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2017(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)		Millions of yen
Year ended		March 31, 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
		 Rent income on noncurrent assets
		 Foreign exchange gains
		 Other		 Total other income
Other expenses:
		 Interest expenses
		 Foreign exchange losses
		 Commission for purchase of treasury stock
		 Depreciation of idle assets
		 Rent expenses
		 Other		 Total other expenses
Recurring profit
Extraordinary income:		 Gain on sales of fixed assets
		 Gain on sale of investment securities
		 Reversal of allowance for doubtful receivables
		 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
		 Amortization of goodwill
		 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

8

Year ended
March 31, 2017

320,654277,264
43,38919,54023,849334,163
288,440
45,723
20,68625,036

62
168
165
93
—
172
662

15
179
16
91
13
134
451

9
145
23
25
39
45
289
24,223

8
—
21
35
63
18
147
25,341

72
237
—
—
386
13
709

24
161
328
84
—
49
649

98
470
—
162
162
893
24,040

114
391
2,273
163
239
3,183
22,807

7,417
1,170
8,588
15,45130
15,420

8,958
(663)
8,295
14,512
26
14,485COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2017

(Consolidated Statements of Comprehensive Income)		Millions of yen
Year ended		March 31, 2016		

Net income
Other comprehensive income:			 Unrealized gain (loss) on other securities
			 Revaluation reserve for land
			 Remeasurements of defined benefit plans
			 Total other comprehensive income
Comprehensive income
		 (Breakdown)
			 Comprehensive income attributable to owners of the parent
			 Comprehensive income attributable to non-controlling interests

9

Year ended
March 31, 201715,451

14,512(292)
80(2,693)(2,905)
12,546

318
—
568
886
15,39912,52223

15,36929

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2017(3) Consolidated Statements of Changes in Net Assets
Millions of yen

Shareholders’ equity

Year ended March 31, 2016
Balance at the end of the previous period

Commonstock

Additional
paid-in capital

Retainedearnings

Treasurystock,at cost

Total
Shareholders’equity10,00056,615

164,836(34,852)

196,599

Changes during the period
Cash dividends(3,402)

Net income attributableto owners of parent

15,420(3,402)
15,420

Repurchase of treasury stock(8,002)(8,002)

273

1,067

1,341

Retirement of treasury stock(5,778)

5,778—

Purchase of treasury stockof subsidiaries

154

Disposal of treasury stock

154

Changes of scope of consolidation

(6)

(6)

Increase by share exchanges—

Reversal of revaluation reserve
for land—Net changes during the period
except for shareholders’ equity
Total changes during the period
Balance at the end of the period——(5,350)12,011(1,155)

5,504

10,00051,264

176,847(36,008)

202,104

Millions of yen

Accumulated other comprehensive income

Year ended March 31, 2016
Balance at the end of the previous period

Totalaccumulated
other
Revaluation Remeasurements
Unrealized
reservegain (loss) onof defined comprehensive Subscription
incomefor landother securities
benefit plansrights to shares

2,638(7,936)

1,473(3,824)500

Noncontrollinginterests

Total
net assets

762

194,038

Changes during the period
Cash dividends(3,402)

Net income attributableto owners of parent

15,420

Repurchase of treasury stock(8,002)

Disposal of treasury stock

1,341

Retirement of treasury stock—

Purchase of treasury stockof subsidiaries

154

Changes of scope of consolidation(6)

Increase by share exchanges—

Reversal of revaluation reserve
for land—Net changes during the period
except for shareholders’ equity
Total changes during the period
Balance at the end of the period

(288)

80

(2,692)(2,900)(288)

80(2,692)2,350(7,856)(1,219)

10

41

(141)

(2,999)(2,900)

41

(141)

2,505

(6,724)542

621

196,543

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2017

Millions of yen

Shareholders’ equity

Year ended March 31, 2017
Balance at the end of the previous period

Commonstock

Additional
paid-in capital

Retainedearnings

Treasurystock,at cost

Total
Shareholders’equity10,00051,264

176,847(36,008)

202,104

Changes during the period
Cash dividends(4,435)

Net income attributableto owners of parent

14,485(4,435)
14,485

Repurchase of treasury stock
Disposal of treasury stock99(8,000)(8,000)

442

541

—

Retirement of treasury stock
Purchase of treasury stockof subsidiaries—

Changes of scope of consolidation(837)

Increase by share exchanges

(837)

2,538

1,161

Reversal of revaluation reserve
for land

134

134

Net changes during the period
except for shareholders’ equity
Total changes during the period
Balance at the end of the period

3,700

—
—

1,260

9,347

(5,019)5,588

10,00052,525

186,195(41,028)

207,692

Millions of yen

Accumulated other comprehensive income

Year ended March 31, 2017
Balance at the end of the previous period

Totalaccumulated
other
Revaluation Remeasurements
Unrealized
reservegain (loss) onof defined comprehensive Subscription
incomefor landother securities
benefit plansrights to shares

2,350(7,856)(1,219)(6,724)542

Noncontrollinginterests

Total
net assets

621

196,543

Changes during the period
Cash dividends(4,435)

Net income attributableto owners of parent

14,485

Repurchase of treasury stock(8,000)

Disposal of treasury stock

541

Retirement of treasury stock—

Purchase of treasury stockof subsidiaries—

Changes of scope of consolidation(837)

Increase by share exchanges

3,700

Reversal of revaluation reserve
for landNet changes during the period
except for shareholders’ equity
Total changes during the period
Balance at the end of the period

(134)

—

(134)

315

568

884

35

26

946

315

(134)

568

749

35

26

6,400

2,666

(7,990)(650)(5,974)578

647

202,943

11

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2017(4) Consolidated Statements of Cash Flows		
Millions of yen
Year ended		March 31, 2016		

Cash flows from operating activities:
		 Income before income taxes and other adjustments to net income
		 Depreciation and amortization
		 Loss on impairment of fixed assets
		 Gain on negative goodwill
		 Amortization of goodwill
		 Decrease in allowance for doubtful receivables
		 Increase (decrease) in net defined benefit liability
		 Interest and dividends received
		 Interest expenses
		 Increase in receivables—trade
		 Decrease (increase) in inventories
		 Increase in payables—trade
		 Gain on sale of investment securities
		 Increase in other assets
		 Increase (decrease) in other liabilities
		 Other, net
							 Cash and cash equivalents received on interest and dividends income
		 Cash and cash equivalents paid for interest expenses
		 Cash and cash equivalents paid for income taxes
		 Net cash provided by operating activities
Cash flows from investing activities:
		 Decrease in time deposits, net
		 Payment for purchases of investment securities
		 Proceeds from sale of investment securities
		 Proceeds from redemption of investment securities
		 Proceeds from purchase of stocks of subsidiaries
			 resulting in change in scope of consolidation
		 Purchase of investments in subsidiaries
		 Acquisitions of property and equipment
		 Acquisitions of intangible fixed assets
		 Proceeds from sale of property and equipment
		 Payments of loans receivable
		 Collection of loans receivable		 Purchase of insurance funds
		 Proceeds from cancellation of insurance funds
		 Other, net
		 Net cash used in investing activities

12

Year ended
March 31, 2017

24,040
5,009
470
(386)
594
(236)
(264)
(230)
9
(8,377)
653
2,955
(177)
(998)
(2,506)146
20,701227(9)(7,829)13,08922,807
5,723
391
—
3,017
(453)
24
(195)
7
(7,694)(4,257)
801
(161)
(282)
811
168
20,709194(7)(8,351)
12,545

59
(206)
1,156
100

30
(151)
242
—

216
(70)
(4,639)(1,664)863(3,695)
511
(16)
235
(152)
(7,303)—(241)(8,864)(1,171)
101
(38)
151
(96)
258
(160)
(9,940)COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2017

Millions of yen
Year ended		March 31, 2016		

Year ended
March 31, 2017

(8)
(16)
(8,025)234(7)(3,402)(3)(78)(11,307)(0)(5,521)33,43556(9)(8,022)329—(4,435)(2)(94)(12,178)(0)(9,573)28,818883
21—
28,818

282
96
1,255
20,879Cash flows from financing activities:

Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents resulting
			 from change of scope of consolidation
Increase in cash and cash equivalents resulting from merger
Increase in cash and cash equivalents resulting from share exchange
Cash and cash equivalents at end of year

13

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2017

(Significant Subsequent Event)(Acquisition of Treasury Stock)
The meeting of the Board of Directors held on May 9, 2017 resolved as follows on the matters related to the acquisition oftreasury stock in accordance with Article 156 of Japan’s Companies Act, as applied pursuant to paragraph 3, Article 165 of
the Act.
(1) Reason for Acquisition of Treasury Stock

The Company will acquire treasury stock in order to facilitate
enhancement of shareholder returns and the execution of flexible capital
policies that respond to changes in the corporate environment.

(2) Type of Shares to be Acquired

Shares of common stock of the Company(3) Total Number of Shares to be Acquired

Up to 2,750,000 shares(4) Total Acquisition Price

Up to ¥5,000,000,000(5) Acquisition Period

From May 10, 2017 to March 31, 2018

(Other)(Creation of Wholly Owned Subsidiary through Share Exchange)
The meeting of the Board of Directors held on March 23, 2017 resolved to implement a share exchange through which theCompany will become the sole parent company of Kando Co., Ltd. (“Kando”) and Kando will become a wholly owned
subsidiary of the Company and concluded the share exchange agreement effective as of the same date. The share exchange
will be implemented with an effective date of July 1, 2017, and a transfer of shares to Nippon COMSYS Co., Ltd., a wholly
owned subsidiary of the Company, is planned for the same date.
(1) Overview of Business Acquisition
1) Name of Company to be Acquired and Content and Scale of its Business
Kando Co., Ltd. (gas piping facilities and water supply sanitation, air conditioning, construction of air heating andcooling systems, electrical and telecommunications construction, civil engineering, landscaping, waterproofing,
installation of machinery and equipment, sewerage and construction work, etc.)
The total assets and net sales of the Kando Group are as follows.
Total Assets: ¥22,805 million (FY March 2016)
Net Sales: ¥35,819 million (FY March 2016)
2) Main Reason for Business Acquisition
Kando is engaged in a wide variety of businesses ranging from conduit construction to urban facilities projects. In
particular, the company has built extensive experience and credentials in gas infrastructure construction, and it has earned
a great deal of customer trust with its advanced construction capabilities.
As a result of the share exchange, both groups will be able to complement the technical capabilities of each otherand maximize synergies in the operation of wide-ranging businesses leveraging the strengths of the COMSYS Group andthe Kando Group. Through this combination, the Company is committed to further enhancing its corporate value andto strongly promoting a growth strategy as one group in a stable, ongoing manner. Specifically, the Company will pursue
the expansion of the infrastructure facility construction service lineup, including gas, communications, electricity, watersupply and sewerage, and streamline operations through the exchange of human resources and the sharing and utilizationof construction, safety, and quality management know-how and IT platforms.
3) Planned Date of Business Acquisition
July 1, 20174) Legal Form of Business Acquisition
Share exchange5) Company Name after Acquisition
Kando Co., Ltd.
6) Percentage of Voting Rights to be Acquired
100%7) Main Grounds for Determining the Company to Acquire
The Company will acquire 100% of voting rights through the share exchange, making Kando into a wholly owned
subsidiary.
14

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2017(2) Exchange Ratio by Type of Shares, Method of Calculation, and Number of Shares to Be Exchanged
1) Exchange Ratio by Type of Shares
6.19 shares of common stock of the Company will be allotted and delivered for one share of Kondo’s common stock.
2) Method of Calculating Share Exchange Ratio
In the calculation of the share exchange ratio to be used in the share exchange, the Company requested GCA LLC(“GCA”), an independent third-party institution, to calculate the share exchange ratio in order to ensure fairness andappropriateness and conducted review, negotiation, and consultation taking the results of the calculations by GCA into
consideration to determine the actual share exchange ratio.
3) Number of Shares to be Delivered
7,923,200 shares
Note: Matters yet to be finalized are omitted.

15

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2017

4. Other(1) Transition to a Company with an Audit and Supervisory Committee
The Company plans to transition to a company with an Audit and Supervisory Committee conditional upon the approvalat the 14th Annual General Meeting of Shareholders to be held on June 29, 2017. Please refer to “COMSYS Holdings
Announces Transition to a Company with an Audit and Supervisory Committee and Partial Amendment of the Articles ofIncorporation” published on May 9, 2017 for the details.

(2) Change of Directors (scheduled for June 29, 2017)(1) Changes in Representatives
Hajime Takashima, Corporate Advisor
Takashi Kagaya, President and Representative Director(Currently President and Representative Director)(Currently Representative Director)(2) Changes in Other Officers
1) Candidates for Appointment as New Directors
Akihiko Aoyama, Director(Currently President and Representative Director of
COMSYS JOHO SYSTEM Corporation)(Currently General Manager of Personnel Department,
Director of Nippon COMSYS Corporation)

Norio Suda, Director

2) Candidates for Appointment as New Directors (Audit and Supervisory Committee Members)
Tsuyoshi Nishiyama, Director (Audit and Supervisory Committee Member)(Currently Director)
Koichiro Kamiwaki, Director (Audit and Supervisory Committee Member)(Currently Audit & Supervisory Board Member)
Kenichi Narumiya, Outside Director (Audit and Supervisory Committee Member)(Currently Outside Audit & Supervisory Board Member)
Masahiko Miyashita, Outside Director (Audit and Supervisory Committee Member)(Currently Outside Audit & Supervisory Board Member)
Takaharu Saegusa, Outside Director (Audit and Supervisory Committee Member)(Currently Outside Audit & Supervisory Board Member)
Kazuyoshi Onohara, Outside Director (Audit and Supervisory Committee Member)(Currently Outside Audit & Supervisory Board Member)3) Retiring Directors
Hajime Takashima, President and Representative Director(scheduled to be appointed as Corporate Advisor)
Tsuyoshi Nishiyama, Director(scheduled to be appointed as Director[Audit and Supervisory Committee member])
Kenichi Narumiya ,Outside Director(scheduled to be appointed as Outside Director[Audit and Supervisory Committee member])
Masahiko Miyashita, Outside Director(scheduled to be appointed as Outside Director[Audit and Supervisory Committee member])4) Retiring Audit & Supervisory Board Members
Hiroshi Komori, Standing Audit & Supervisory Board Member
Koichiro Kamiwaki, Audit & Supervisory Board Member(scheduled to be appointed as Director[Audit and Supervisory Committee member])
Takaharu Saegusa, Outside Audit & Supervisory Board Member(scheduled to be appointed as Outside Director[Audit and Supervisory Committee member])Kazuyoshi Onohara, Outside Audit & Supervisory Board Member (scheduled to be appointed as Outside Director[Audit and Supervisory Committee member])16