May 10, 2019

COMSYS Holdings Corporation
Consolidated Financial Results for the Fiscal Year Ended March 31, 2019
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 Annual General Meeting of Shareholders: June 25, 2019
Scheduled Commencement of Dividend Payment: June 26, 2019
Scheduled Filing of Securities Report:
June 25, 2019
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, 2019)(1) Consolidated Operating Results
Net SalesYear ended March 31, 2019Year ended March 31, 2018

¥481,783
380,024(Millions of yen, except per share data and percentages)

Operating Income
26.8%
13.7

¥35,267
30,347Net Income Attributable to
Owners of Parent

Recurring Profit

16.2%
21.2

¥36,071
30,70617.5%
21.2¥28,018
20,39037.4%
40.8

Notes: 1. Comprehensive income:Year ended March 31, 2019: ¥26,253 million [17.9%]
Year ended March 31, 2018: ¥22,260 million [44.6%]
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¥230.10178.64¥229.21177.8910.6%
9.4

Year ended March 31, 2019Year ended March 31, 2018
(Reference) Equity in earnings of affiliates:

Year ended March 31, 2019: ¥— million

Recurring Profit/ Total Assets

Operating Margin

9.4%
10.1

7.3%
8.0

Year ended March 31, 2018: ¥— million(2) Consolidated Financial Position(Millions of yen, except per share data and percentages)

Total Assets
As of March 31, 2019
As of March 31, 2018

Net Assets¥439,926
325,042(Reference) Shareholders’ equity:

Equity Ratio¥301,459
231,767

Net Assets per Share
67.8%
70.8

As of March 31, 2019: ¥298,373 million¥2,318.35
2,008.42

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
the Consolidated Financial Results for the Fiscal Year Ended March 31, 2019. Figures relating to the previous fiscal year are shown after the retrospective
application of the said accounting standard.

(3) Consolidated Cash Flows

Year ended March 31, 2019Year ended March 31, 2018

(Millions of yen)

Cash Flows fromOperating Activities¥ 8,964
28,831

Cash Flows from
Investing Activities¥(11,550)(13,896)

Cash Flows from
Financing Activities¥(15,382)(12,499)

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

Cash Dividends per ShareYear ended March 31, 2018Year ended March 31, 2019Year ending March 31, 2020 (Forecast)

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

Year-End

Annual¥ ———¥25.00
30.00
35.00

¥ —
—
—

¥25.0030.00
40.00¥50.0060.00
75.00

3. Consolidated Earnings Forecast (for the fiscal year ending March 31, 2020)
Net Sales

Cash and Cash Equivalents
at End of Year
¥27,778
28,957

Operating Income¥5,765
7,265

Consolidated Basis
Dividend
PayoutRatio

Ratio of
Dividends to
Net Assets

28.0%
26.1
37.9

2.6%
2.8

(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, 2019¥230,000 29.3%¥11,500
4.8%¥11,700
4.2%¥ 7,500
5.2%¥ 58.27
Year ending March 31, 2020
540,000 12.1
38,0007.7
38,5006.7
25,500 (9.0)
198.13Note. 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, 2019

*Notes:(1) Changes in significant subsidiaries during the period under review (changes to subsidiaries that would alter the scope of
consolidation): Yes
Newly consolidated: One company (Company name) NDS Co., Ltd., Excluded from consolidation: Nil, (Company name) —(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: 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(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, 2019
141,000,000 shares
12,299,356 shares

As of March 31, 2018
141,000,000 shares
26,422,771 sharesYear ended March 31, 2019
121,767,784 sharesYear ended March 31, 2018
114,145,710 shares(Reference) Summary of Non-Consolidated Financial Results
Non-Consolidated Financial Results (for the fiscal year ended March 31, 2019)(1) Non-Consolidated Operating Results
Year ended March 31, 2019Year ended March 31, 2018

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

Operating Revenues

Operating Income

Recurring Profit¥10,473
7,867¥9,210
6,787¥9,247
6,821

33.1%(21.1)

35.7%(24.5)

35.6%(23.9)Net Income¥9,1796,757

35.8%(24.3)

Note: Percentages indicate the percentage change from the corresponding period of the previous fiscal year.
Net Income per ShareNet Income per Share (Diluted)¥75.35
59.18

Year ended March 31, 2019Year ended March 31, 2018¥75.0658.93(2) Non-Consolidated Financial Position(Millions of yen, except per share data and percentages)

Total Assets
As of March 31, 2019
As of March 31, 2018
(Reference) Shareholders’ equity:

Net Assets¥159,103
99,930¥134,425
83,162As of March 31, 2019: ¥133,768 million

Equity Ratio

Net Assets per Share
84.1%
82.7

¥1,039.38
721.08

As of March 31, 2018: ¥82,649 million<Reason for discrepancies with the figures for the non-consolidated financial results in the previous fiscal year>
Dividend income from consolidated subsidiaries increased in the fiscal year ended March 31, 2019. As a result, there are discrepancies withthe figures for the previous fiscal year for operating revenues, operating income, recurring profit, net income, net income per share, and net
income per share (diluted).
*This Consolidated Financial Results report has not been subjected to audit 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
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 “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
Thursday, May 16, 2019. 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, 2019

Accompanying Materials
1. Business Review(1) Operating Results
During the fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019), the Japanese economy was expected to maintaina moderate recovery, backed by improvements in corporate earnings and the employment environment based on the effects ofvarious policies implemented by the Japanese government and the Bank of Japan. However, there has been a need to monitor
such factors as the increasing trade friction between the U.S. and China and fluctuations in financial and capital markets.
In the information and communications field, the COMSYS Group’s principal area of activity, there was
expansion in value-added services such as content provision, and the upgrading of the mobile network was promoted toaccommodate the sharply increasing, higher-volume traffic. Moreover, in both the public and private sectors, expansion
was anticipated in various business undertakings. This includes building national resilience, such as disaster prevention andmitigation measures for intensifying natural disasters, as well as development in renewable energy policies, and social
infrastructure investment in preparation for the Tokyo Olympic and Paralympic Games. Also, investment expansion is
expected in information and communication technology (ICT) utilizing innovations such as cloud technology, the internetof things (IoT), and artificial intelligence (AI).
The COMSYS Group took initiatives for top-line expansions, which included entering the renewable energy
business, 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 three companies in the communications construction industry (NDS Co., Ltd., SYSKENCorporation, and Hokuriku Denwa Kouji Co., Ltd.). Moreover, in addition to seeking to generate synergies from theintegration as soon as possible, the Group worked to improve profit by transferring personnel to growth businesses andimplementing measures such as increasing construction efficiency and cutting costs by promoting workstyle innovation.
The gain on negative goodwill from the business integration was recorded as extraordinary income.
Under these circumstances, orders received in the current fiscal year increased 25.7% year on year to ¥505,558 million,
and net sales rose 26.8% year on year to ¥481,783 million. From a profit perspective, operating income increased by 16.2% year on
year to ¥35,267 million, while net income attributable to owners of the parent increased 37.4% year on year to ¥28,018 million.

(2) Financial Position(a) Assets
Current assets as of March 31, 2019 stood at ¥247,013 million, ¥64,766 million higher than at the end of the previous fiscal
year. This was mainly attributable to a ¥47,359 million increase in notes and accounts receivable – trade. Fixed assets as ofMarch 31, 2019 stood at ¥192,912 million, ¥50,116 million higher than at the end of the previous fiscal year. This was
mainly attributable to an increase of ¥32,995 million in property and equipment and a ¥17,578 million increase ininvestments and other assets.
As a result, total assets amounted to ¥439,926 million as of March 31, 2019, an increase of ¥114,883 million
compared with the end of the previous fiscal year.
(b) Liabilities
Current liabilities as of March 31, 2019 stood at ¥116,125 million, up ¥33,292 million compared with the previous fiscal yearend. This was mainly attributable to an increase of ¥17,935 million in accounts payable – trade and a ¥8,437 million increase in
short-term bank loans. As of March 31, 2019, long-term liabilities amounted to ¥22,340 million, ¥11,899 million higher
compared with the end of the previous fiscal year. This was mainly attributable to a ¥6,244 million increase in net defined benefit
liability and a ¥3,207 million increase in long-term debt.
As a result, total liabilities amounted to ¥138,466 million, an increase of ¥45,192 million compared with the end of theprevious fiscal year.
(c) Net assets
Net assets stood at ¥301,459 million as of March 31, 2019, an increase of ¥69,691 million compared with the end of theprevious fiscal year. This was mainly due to a ¥30,665 million increase in additional paid-in capital and a ¥17,475 million
decrease in treasury stock, both due to the share exchanges in the acquisition of consolidated subsidiaries, and a ¥21,931
million increase in retained earnings.
As of the end of the fiscal year under review, the equity ratio stood at 67.8%, down from 70.8% as of March 31, 2018.
3

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2019(3) Cash Flow
Cash and cash equivalents stood at ¥27,778 million at the end of the fiscal year, a decrease of ¥1,179 million, or 4.1%,
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, 2019 are presented as follows.
(a) Cash flows from operating activities
Net cash provided by operating activities stood at ¥ 8,964 million compared with ¥28,831 million for the previous fiscal
year. The major cash inflows were income before income taxes and other adjustments to net income of ¥39,600 million anddepreciation and amortization of ¥7,444 million. Major cash outflows for the fiscal year ended March 31, 2019 included
receivables – trade of ¥22,600 million and income taxes paid of ¥14,790 million.
(b) Cash flows from investing activities
Net cash used in investing activities totaled ¥11,550 million for the fiscal year under review compared with net cash of¥13,896 million used in the previous fiscal year. The major components were acquisitions of property and equipment of¥9,460 million and payment for purchases of investment securities of ¥1,603 million.
(c) Cash flows from financing activities
Net cash used in financing activities was ¥15,382 million for the fiscal year ended March 31, 2019, compared with ¥12,499
million used in financing activities in the previous fiscal year. Acquisition of treasury stock amounted to ¥8,027 million,
while cash dividends totaled ¥6,267 million.

(4) Outlook for fiscal year ending March 31, 2020
In the fiscal year ended March 31, 2019, the COMSYS Group achieved COMSYS VISION 2020 earlier than expected as aresult of structural reform efforts and topline growth initiatives such as the expansion of private-sector projects and M&As.
As a result, the Group is working to newly formulate and promote COMSYS VISION NEXT STAGE 2023, ending infiscal 2023 as new guidelines. Specifically, as some of the main measures, the Group will work on promoting: (1) the virtualcompany system based on the same business segment across the operating companies; (2) work-style innovation; (3) a newrenewable energy business; and (4) the M&A strategy. It will also work on increasing the mobility of Group personnel.
Based on such measures, in the outlook for the fiscal year ending March 31, 2020, the COMSYS Group expects
growth in both orders received and net sales. This is due to the effect of the business integration implemented in October
2018 in addition to the upward trend in both public- and private-sector demand as a result of renewable energy policies aswell as social infrastructure investment in preparation for the Tokyo Olympic and Paralympic Games. On the profit front,
the COMSYS Group also expects profit growth due to the business integration, the structural and work-style reforms
implemented to date and efforts to improve construction efficiency and reduce costs.
Consolidated Earnings Forecast(Millions of yen, except percentages)

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

ChangeOrders received¥505,558¥537,000

6.2%

Net sales

481,783

540,000

12.1

Gross profits

65,25372,500

11.1

Operating income

35,26738,000

7.7

Recurring profit

36,071

38,5006.7

Net income attributable to owners of parent

28,01825,500(9.0)

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.

4

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2019

3. Consolidated Financial Statements(1) Consolidated Balance Sheets
Millions of yen
As of March 31, 2018
As of March 31, 2019ASSETS
		 Current assets:
			 Cash and cash equivalents
			 Notes and accounts receivable—trade
			 Lease investment assets
			 Accumulated cost of construction in progress
			 Real estate for sale			 Merchandise			 Materials and supplies
			 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

529,144
121,826
2,719
24,607
—
120
682
3,199
(54)
182,246

28,618169,186
5,671
28,983
1,987
771
1,817
10,111(136)
247,01361,982(31,391)
30,59135,176(19,005)
16,17147,592
451
(287)
164
8,228
102,748

87,826(45,979)
41,84755,124(29,021)
26,10365,7482,389(1,087)
1,302
743
135,744

5,969
4,094
10,063

4,999
4,606
9,606

12,956
1,000
1,519
11,3703,304(166)
29,983
142,796
325,042

27,712963
2,158
11,1975,886(356)
47,561
192,912439,926

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2019

Millions of yen
As of March 31, 2018
As of March 31, 2019

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:
			 Long-term debt
			 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 (loss):			 Unrealized gain on other securities
			 Deferred gains or losses on hedges
			 Revaluation reserve for land
			 Remeasurements of defined benefit plans
			 Total accumulated other comprehensive income (loss)
		 Subscription rights to shares
		 Non-controlling interests
		 Total net assets
Total liabilities and net assets

6

59,749
106
7,815
2,873
176
548
11,563
82,832

77,685
8,543
6,017
4,045
246
1,005
18,583
116,125

5
352
1,369
7,263
271
1,180
10,441
93,274

3,212
583
1,369
13,508622
3,044
22,340138,466

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

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

3,795—(7,905)30(4,079)513
1,134
231,767
325,0422,810(0)(7,905)(802)(5,898)657
2,428
301,459
439,926

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2019(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)		Millions of yen
Year ended		March 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
		 Loss on liquidation of business		 Data recovery expenses
		 Loss on transfer of business		 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

7

Year ended
March 31, 2019

380,024
326,591
53,43323,08530,347

481,783
416,530
65,25329,98535,267

14
227
158
248
647

24
442
245
358
1,070

7
86
117
76
288
30,706

37
124
—
105
267
36,071

0
16
—
927
30
974

87
52
5,159
—
75
5,375

83
494
—
—
—
102
139
819
30,861

57
124
432
396
256
105
473
1,846
39,60010,857(440)
10,417
20,44453
20,39012,422(899)
11,522
28,07759
28,018COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2019

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

8

Year ended
March 31, 2019

20,44428,077

1,134
—
681
1,816
22,260

(990)
(0)
(833)
(1,824)26,253

22,201
59

26,19953

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2019(3) Consolidated Statements of Changes in Net Assets
Millions of yen

Shareholders’ equity

Year ended March 31, 2018

Commonstock

Additional
paid-in capital

Retainedearnings

Treasurystock,at cost

Total
Shareholders’equityBalance at the end of the previous period

10,00052,525

186,195(41,028)

207,692

Changes during the period
Cash dividends(5,082)

Net income attributableto owners of parent

20,390

Repurchase of treasury stock
Disposal of treasury stock

244

Purchase of treasury stockof subsidiaries

104(5,082)
20,390(8,003)(8,003)

700

944

104

Purchase of sharesof consolidated subsidiaries—

Changes of scope of consolidation(88)

Increase by share exchanges

10,317

8,009

Reversal of revaluation reserve
for land(88)

18,326(84)(84)

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

—
—

8,358

15,134

3,013

26,506

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

234,199

Millions of yen

Accumulated other comprehensive income

Year ended March 31, 2018
Balance at the end of the previous period

Deferred
Unrealized
gain on other gains or losses
on hedges
securities

Revaluation
reservefor land—(7,990)

2,666

Total
accumulated
otherRemeasurementsof defined comprehensive Subscription
incomebenefit plansrights to shares(650)(5,974)578

Noncontrollinginterests

Total
net assets

647

202,943

Changes during the period
Cash dividends(5,082)

Net income attributableto owners of parent

20,390

Repurchase of treasury stock(8,003)

Disposal of treasury stock

944

Purchase of treasury stockof subsidiaries

104

Purchase of sharesof consolidated subsidiaries—

Changes of scope of consolidation(88)

Increase by share exchanges

18,326

Reversal of revaluation reserve
for land(84)

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

1,129

—

84

681

1,895

(65)

486

2,317

1,129

—

84

681

1,895

(65)

486

28,823

3,795—(7,905)30(4,079)

513

1,134

231,767

9

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2019

Millions of yen

Shareholders’ equity

Year ended March 31, 2019

Commonstock

Additional
paid-in capital

Retainedearnings

Treasurystock,at cost

Total
Shareholders’equityBalance at the end of the previous period

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

234,199

Changes during the period
Cash dividends(6,267)

Net income attributableto owners of parent

28,018

Repurchase of treasury stock
Disposal of treasury stock360(6,267)28,018(8,011)(8,011)

985

1,346

Purchase of treasury stockof subsidiaries—

Purchase of sharesof consolidated subsidiaries(9)

Changes of scope of consolidation

(9)
180

Increase by share exchanges

180

24,50130,31354,815

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——

30,66521,931

17,47570,072

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

Millions of yen

Accumulated other comprehensive income

Year ended March 31, 2019
Balance at the end of the previous period

Deferred
Unrealized
gain on other gains or losses
on hedges
securities

Revaluation
reservefor land—(7,905)

3,795

Total
accumulated
otherRemeasurementsof defined comprehensive Subscription
incomebenefit plansrights to shares30(4,079)513

Noncontrollinginterests

Total
net assets

1,134

231,767

Changes during the period
Cash dividends(6,267)

Net income attributableto owners of parent

28,018

Repurchase of treasury stock(8,011)

Disposal of treasury stock

1,346

Purchase of treasury stockof subsidiaries—

Purchase of sharesof consolidated subsidiaries(9)

Changes of scope of consolidation

180

54,815

Increase by share exchanges
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

—
(984)

(0)

—

(833)

(1,818)

143

1,294

(380)

(984)

(0)

—

(833)

(1,818)

143

1,294

69,6912,810(0)(7,905)(802)(5,898)

657

2,428

301,459

10

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2019(4) Consolidated Statements of Cash Flows		
Millions of yen
Year ended		March 31, 2018		

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
		 Loss on liquidation of business		 Loss on transfer of business		 Data recovery expenses
		 Increase (decrease) in allowance for doubtful receivables
		 Increase (decrease) in net defined benefit liability
		 Interest and dividends received
		 Interest expenses
		 Increase in receivables—trade
		 Increase in inventories
		 Increase in payables—trade
		 Gain on sale of investment securities
		 Write-down on investments in securities
		 Decrease (increase) in other assets
		 Increase 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 (increase) in time deposits, net
		 Payment for purchases of investment securities
		 Proceeds from sale of investment securities
		 Purchase of investments in subsidiaries
		 Proceeds from transfer of business		 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

11

Year ended
March 31, 2019

30,861
5,866
494
—
888
—
—
—
(1,436)36(241)
7(2,510)(4,717)
535
(0)
—
1,106
3,137
1,085
35,114241(7)(6,516)
28,831

39,6007,444
124(5,159)
1,116
432
256
396
0
(78)
(467)
37
(22,600)(1,692)
8,256
(77)
22
(6,814)
1,934
592
23,326466(37)(14,790)
8,964

(94)
(155)
56
—
—
(13,139)(1,026)
26
(200)
718
(333)
435
(184)
(13,896)279(1,603)414(14)
83(9,460)(1,235)
608
(171)
162
(24)
54
(642)
(11,550)

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2019		Millions of yen
Year ended		March 31, 2018		

Cash flows from financing activities:
		 Increase in short-term borrowings, net
		 Proceeds from long-term debt
		 Repayment of long-term debt
		 Acquisitions of treasury stock		 Proceeds from sale of treasury stock		 Purchase of investments in subsidiaries resulting
			 in no change in scope of consolidation
		 Purchase of treasury stock of subsidiaries
		 Cash dividends paid
		 Cash dividends paid to non-controlling interests
		 Repayments of finance lease obligations
		 Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net Increase (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

12

Year ended
March 31, 2019

30
—
(6)
(8,019)668(1,205)500(1,282)(8,027)
1,072

—
(3)
(5,082)(2)(82)(12,499)
5
2,441
20,879(54)—(6,267)(2)(114)(15,382)(0)(17,967)
28,957316—
5,319
28,957163
75
16,54927,778COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2019

(Per share Information)
		YenYear ended		March 31, 2018		

Net assets per share
Net income per share
Net income per share (diluted)

2,008.42
178.64177.89Year ended
March 31, 2019

2,318.35
230.10229.21

Notes. The bases for calculation of net income per share and diluted net income per share are as follows:
Millions of yen, except per share data and number of sharesYear ended		Year ended
March 31, 2018		
March 31, 2019

Net income per share
		 Net income attributable to owners of parent
		 Amount not attributable to common shareholders
		 Net income attributable to owners of parent			
attributable to common stock		 Average number of common stock			
during the period (in thousands)
Net income per share (diluted)
		 Adjustment for net income attributable to owners of parent
		 Increase in number of shares of common stock (in thousands)
		 [Of which subscription rights to shares (in thousands)]

178.64
20,390—230.1028,018—20,39028,018114,145

121,767

177.89—476[476]

229.21—
469[469]

Outline of dilutive shares which were not included in		
the calculation of “Net income per share (diluted)”		
because they do not have dilutive effect:
					
					

August 3, 2018
Board of Directors resolution					Common stock 389 thousand shares

Stock options(Stock Acquisition Rights)(Significant Subsequent Event)(Acquisition of Treasury Stock)
The meeting of the Board of Directors held on May 10, 2019 resolved as follows on the matters related to the acquisitionof treasury 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 2,000,000 shares(4) Total Acquisition Price

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

From May 13, 2019 to March 31, 2020

13

COMSYS Holdings Corporation (1721)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2019

4. Other
Change of Directors
1) Changes in Representatives
Not applicable.
2) Changes in Other Officers (scheduled for June 25, 2019)
1. Candidates for Appointment as New Directors (excluding Audit and Supervisory Committee Member)
Satoshi Tamamura, Director(Currently President & CEO of NDS Co., Ltd.)
Hidenori Fukumoto, Director(Currently President and Representative Director
		of SYSKEN Corporation)
2. Candidates for Appointment as New Directors (Audit and Supervisory Committee Members)
Kenichi Nakatogawa, Outside Director(Currently Director of NAKATOGAWA CPA OFFICE)
Koichi Kawana, Outside Director(Currently Vice Chairman of JGC CORPORATION)
3. Retiring Directors (excluding Audit and Supervisory Committee Member)
Noriaki Ito, Director(scheduled to be appointed as Corporate Advisor			of Nippon COMSYS Corporation)
Akio Ogawa, Director(continued to be appointed as President and			 Representative Director of TOSYS Corporation)
Norio Suda, Director(scheduled to be appointed as President and Representative			 Director of COMSYS Mobile Corporation)
4. Retiring Directors (Audit and Supervisory Committee Member)
Tsuyoshi Nishiyama, Director(continued to be appointed as Auditor
			 of Nippon COMSYS Corporation)
Takaharu Saegusa, Outside Director

14