North America IR Presentation Materials - comsys-hd.co.jp · January 2016 North America IR Presentation Materials Materials for the First Half of the Fiscal Year Ending March 31,

January 2016

North America IR Presentation Materials

Materials for the First Half of the Fiscal Year Ending March 31, 2016

2

Contents

I. Overview of Performance for the First Half of the Fiscal Year Ending March 31, 2016 Page V. Shareholder Returns Policy Page

1. Highlights of the First Half Financial Statements 3 1. Additional Measures for Shareholder Returns 20

2. Details of the First Half Orders Received by Business Segment 4 2. Shareholder Returns Policy (Dividends and Acquisition of Treasury Stock) 21

3. Details of the First Half Sales by Business Segment 5 VI. Construction IT Platform

4. Details of First Half Operating Income 6 1. Overview of Construction IT Platform 22

II. Full Year Forecasts for the Fiscal Year Ending March 31, 2016 2. Construction IT Platform Results 23

1. Full Year Forecasts for the Fiscal Year Ending March 31, 2016 7 3. Future Outlook for Construction IT Platform 24

2. Contract Backlogs (1) 8 VII. Structural Reform and Medium- and Long-Term Vision

3. Contract Backlogs (2) 9 1. Operating Results by Year (Supplementary Materials) 25

III. Trends at Principal Carriers 2. Progress on COMSYS WAYa Structural Reforms 26

1. Trends in NTT Fixed-Line Related Business 10 3. Medium- and Long-Term Vision 27

2. Trends in NTT Mobile Business 11 VIII. Corporate Profile

3. Trends in NCC Business 12 1. COMSYS Group 28

4. Forecasts for Mobile Data Traffic 13 2. Business Segment (1) 29

5. NTT DOCOMO Network 14 3. Business Segment (2) 30

IV. Strategies for Top-Line Expansion 4. Corporate History 31

1. Medium- to Long-Term Targets 15 5. Stock Information 32

2. Solar Power-Related Business 16 6. Organization Chart/Board Members 33

3. Progress in Post Solar Development Business (1) 17

4. Progress in Post Solar Development Business (2) 18 IX. Interim Results for the Fiscal Year Ending March 31, 2016

5. Profit Improvement at Ecosystem Japan Group 19 — Data Book — 34

3

I-1. Highlights of the First Half Financial Statements

Although sales and profit fell short, orders received exceeded forecasts

Performance Performance in previous term

Comparisons withthe previous term Forecasts Comparisons

with forecasts RemarksPercent of Net Sales Percent of Net Sales Difference Percent of Net Sales Difference

Orders Received 1,626 1,735 -108 1,520 +106 Orders ReceivedThe NCC Engineering business declined con-siderably as investment by telecommunications carriers was restrained, so orders received were lower than the previous term, which recorded an all-time high. However, orders received were higher than forecasts as the mainstay NTT infra-structure business remained robust.

Net SalesCarrier-related business (NTT and NCC) was flat, and sales declined, falling below the pre-vious term, which recorded an all-time high. In addition, while non-carrier-related business (social system and IT) remained robust, sales fell short of forecasts due to a decline in sales in mobile-related business (NTT mobile and NCC).

Operating IncomeDespite structural reforms and efforts to raise productivity, income fell short of the previous term and forecasts due to the decline in net sales and deterioration in the product mix.

Net Sales 1,287 1,442 -155 1,310 -22

Gross Profits161 214 -53 180 -18

12.5% 14.9% -2.4 percentage points 13.7% -1.2 percentage points

Selling, General and

Administrative Expenses

95 102 -7 100 -47.5% 7.1% +0.4 percentage points 7.6% -0.1 percentage points

Operating Income65 111 -46 80 -145.1% 7.7% -2.6 percentage points 6.1% -1.0 percentage points

Recurring Profit68 113 -44 83 -145.3% 7.8% -2.5 percentage points 6.3% -1.0 percentage points

Net Income Attributable to

Owners of Parent

45 68 -23 50 -43.5% 4.8% -1.3 percentage points 3.8% -0.3 percentage points

Notes: 1. Performance in the previous term (first half of the fiscal year ended March 31, 2015) recorded an all-time high since the establishment of the Company, with ¥173.5 billion in orders received, ¥144.2 billion in net sales, and ¥11.1 billion in operating income.

2. Figures are rounded down to the nearest whole unit.

(Unit: ¥100 million)

4

I-2. Details of the First Half Orders Received by Business Segment

Target

1,626


Comparisons with the Previous Term

Comparisons with Forecasts

-108(-6.2%)

Performance in Previous Term Performance

NTT-G+4.6%

+4

NCC-34.8%

Social System-Related

and Other+1.5%


and Other-9.0%

IT-16.4%

NTT-G+19.3%

NCC-17.1%

IT-8.1%

Decline due to curbing of investment at au and Softbank (decline in orders placed)

1,735 1,520

+40

+149

-68

-26

-47

-32-21

NTT Business (Access) Increase due to early start on utility pole renewal workNTT Business (Network) Increase due to orders moved forward for infrastructure (network simplification) projects

+106(+7.0%)

Decline in reaction to large-scale projects(fire prevention/firefighting, police) in previous term

Decline in reaction to consolidation of Ecosystem Japan in previous term

• Increase due to orders • moved forward for • solar construction projects• Increase in C.C.Box • construction

Failure to receive orders for network construction and disaster prevention radio communications projects as a result of building relocations

Decline due to curbing of investment at au and Softbank (decline in orders placed)

NTT Business (Access) Increase due to early start on utility pole renewal workNTT Business (Network) IIncrease due to orders moved forward for network simplification projectsNTT Business (Mobile) Increase due to start of negotiations for new base stations and actual construction work

Orders received higher than forecast as NTT Engineering business remained robust

5Target

1,287




-155(-10.8%)


NTT-G-14.8%

+13

NCC-30.1%


and Other+6.1%


and Other+0.0%

IT+10.3%

NTT-G-1.6%

NCC-21.4%

IT+4.0%

1,442 1,310

-123

-11-52

-33+20+0

+8

-22(-1.7%)NTT Business (Access)

Decline in general and integrated services projectsNTT Business (Network) Decline in D70 switching equipment renewal workNTT Business (Mobile) Decline in reaction to base station construction in previous term

Increase in allied company (medical) projects

Decline in reaction to au LTE-related projects in previous term

• Increase in solar • construction projects• Increase due to • new consolidated • companies• Failure to receive • orders for government • and municipal • office-related projects

Increase in solar construction projects

Increase in allied company projects

Decrease in au LTE-related projects

NTT Business (Mobile) Decrease due to postponement of base station negotiations and indoor base station projects

I-3. Details of the First Half Sales by Business Segment

Decline in sales due to flat carrier-related business

6

I-4. Details of First Half Operating Income

Target

(Unit: ¥100 million)Comparisons with the Previous Term


-46(-41.3%)


+2

-62

-24

+9+3

+2 +5 +4

-15(-18.2%)

111Operating Margin

(7.7%)

65Operating Margin

(5.1%)

80Operating Margin

(6.1%)

Decrease in net sales and deterioration in product mix

Decrease in net sales and deterioration in product mix

Structural reforms and

improved productivity

Structural reforms and

improved productivity

Improvement due to

cost reduction

Improvement due to

cost reduction

Recovery in performance of

Ecosystems Japan

Recovery in performance of

Ecosystems Japan

Decline in income due to decrease in net sales and deterioration in product mix

7

II-1. Full Year Forecasts for the Fiscal Year Ending March 31, 2016We will aim to achieve forecasts by completing

the large number of contract backlogs and reducing lead time

FY March 2015Performance

FY March 2016Targets

Comparisons withFY March 2015 Remarks

Percent of Net Sales Percent of Net Sales Difference

Orders Received 3,369 3,320 -49Orders Received

While orders received in the NCC Engineering business were low in the first half, orders received overall progressed largely in line with forecasts. In the second half, we will further expand orders received based on an anticipated recovery in the NCC business and aggressive proposal marketing.

Net SalesWe will aim to achieve forecasts by improving construction efficiency with a large number of projects carried forward (contract backlogs) and appropriate operations management.

IncomeWe will aim to achieve forecasts by recording completions early through shorter lead times (from receipt of orders to project completion) and further reductions in expenses.

Net Sales 3,286 3,310 +23

Gross Profits479 480 +0

14.6% 14.5% -0.1 percentage points

Selling, General and

Administrative Expenses

202 200 -26.2% 6.0% -0.2 percentage points

Operating Income276 280 +3

8.4% 8.5% +0.1 percentage points

Recurring Profit281 285 +3

8.6% 8.6% +0.0 percentage points

Net Income Attributable to Owners of Parent

167 170 +25.1% 5.1% +0.0 percentage points

Notes: 1. The forecasts for the fiscal year ending March 31, 2016 have not been changed from the forecasts announced in the financial results summary dated May 8, 2015.

2. Figures are rounded down to the nearest whole unit.


8

II-2. Contract Backlogs (1)

Hopes for net sales in second half and beyond due to all-time-high contract backlogs

1,059

3,160

1,133

2Q Contract Backlogs Net SalesFY March 31, 2013



2Q Contract Backlogs Net Sales (Target)FY March 31, 2016

(First half)1,322

(Second half)1,838

(First half)1,405

(Second half)1,908

3,313

(First half)1,442

(First half)1,287

(Second half)1,844

3,286

(Second-half forecasts)2,023

(Target)

1,1901,321

3,310

All-time-high contract backlogs


and Other

NTT

NCC

IT


9

II-3. Contract Backlogs (2)

FY March 31, 2015Contract Backlogs

FY March 31, 2016Contract Backlogs

First HarfContract Backlogs

Net Sales(First half)

1,287

Orders Received(First half)

1,626

Orders Received(Second half)

1,694 + α

992 + β

Net Sales(Second half)

2,023

981

1,321


Second-Half Project Numbers (orders received + contract backlogs)

All-time-high contract backlogs

Large number of orders received

forecast in second half

All-time-high project volume

expected in second half and beyond

We will aim to achieve forecasts through

a high number of projects.

OrdersReceived

1,694+ α

R

ContractBacklogs

1,321

Expecting all-time-high project volume due to a large number of contract backlogs and orders received in second half

10

NTT WEST

NTT EAST

NTT WEST

NTT EAST

Mar. 2014 Mar. 2015 Mar. 2016(First-Half)

ResultsMar. 2014

ResultsMar. 2015 Mar. 2016

880932930

6,266 5,900

2,687 3,197

6,907

2,241

1,904 1,805

1,019

786

1,040

831

1,051

853

Mar. 2016(Full-Year Forecasts)

1,931

1,080

851

1,871

(Unit: 10,000 lines)

Note: No. of subscriptions is cumulative, optical fiber collaboration is reposted.

Source: NTT Results Briefing Materials

COMSYS Group materials: Simple total for five companies; NTT Engineering business–Access

1,613

1,584

452

478

475

457

455

425489

3,513

3,394 1,287

1,400

3,121

3,145 1,027

1,214

2,900

3,000Investment in

fiber optics2,630

Investment in fiber optics

2,240Investment in

fiber optics2,050

(Full-Year)Mar. 2014

(First-Half) (Full-Year)Mar. 2015

(First-Half) (Full-Year Target)Mar. 2016

(First-Half)



NTT East and NTT West capex

Orders received at COMSYS Group (NTT Business－Access)

No. of FLET’S subscriptions(including optical fiber collaboration)

Results Target

Second-half

First-half

Optical fiber collaboration

8


71


226


399Optical fiber collaboration

164Optical fiber collaboration

19

III-1. Trends in NTT Fixed-Line Related Business

NTT East and West• Overall capex for NTT Group revised to ¥1,730.0 billion from initial ¥1,760.0 billion, in

consideration of a ¥30.0 billion decrease in NTT DOCOMO.• Although there are no revisions to the initial full-year capex of ¥590.0 billion at NTT

East and West, there is a trend of a gradual decline, with the first half down 17% from the previous term to ¥224.1 billion.

No. of FLET’S subscriptions (including optical fiber collaboration)• The net increase in FLET’s subscriptions has been diminishing due to the impact of

mobile communications, etc. • The number of optical fiber collaboration subscriptions at NTT East and West has increased

since the end of the previous fiscal year (the year ended March 31, 2015) with the majority being transfers from other services (new: 270,000 lines, transfers: 1.8 million lines).

COMSYS Group• At the current stage, optic fiber collaboration has not resulted in an increase in orders

received due to the large number of transfers.• Increase in orders received is due to the early start on utility pole renewal work.

11

Source: NTT DOCOMO Results Briefing Materials

ResultsMar. 2014


570622

712

COMSYS Group materials: Simple total for five companies; NTT Engineering business–Mobile

395

317

299

323

320

250316

(Unit: ¥100 million)Orders received at COMSYS Group (NTT Business－Mobile)

Results Target

Second-Half

First Half

Capital Expenditure Trends


[ First-half comparison ]

2,9252,195

LTE

FOMA

Other(Smart Life

business, etc.)

Mar. 2015(First-Half)

Mar. 2016(First-Half)

Mar. 2016(Current Forecast)

Mar. 2016(Initial Forecast)

FY March 2014 FY March 2015(First-Half)

March 2016 (projection)

1,057

1,859

82492

1,369

6,000 6,300

2,470

0

3,530

2,640

0

3,660

NTT DOCOMOLTE Network

LTE base stations97,400 stations

115,400stations

Fastest in Japan130,000stations First half fiscal 2015:

priority roll-out of 7,700 base stations in

640 cities across Japan

Launch of 262.5Mbps service

Launch of 300Mbps service

from October 2015 (410 cities nationwide)900

stations

7,700stations

Premium4G-enabled

base stations18,000

stations

III-2. Trends in NTT Mobile Business

NTT DOCOMO• First-half capex amount remains the same as the original forecast, but the second half

will increase over the first half• Overall capex for the year cut from initial ¥630.0 billion to ¥600.0 billion due to the in-

troduction of new technology, reductions in procurement costs, greater efficiency in re-search and development and information systems investment, along with other reasons.

• No change to future capex plans (until fiscal 2017) from maximum of ¥650.0 billion as in the medium-term target announced last year.

COMSYS Group• Initial planning was made with the emphasis on the latter half of the fiscal year, with the

first-half forecasts being too conservative. However, orders received during the first half exceeded forecasts due to an early start of new negotiations and the consulting business

• Expectations of orders received and sales in second half in anticipation of increasing the speed of the LTE network.

• Cost pressures are expected to be severe considering greater cost efficiency at NTT DOCOMO. However, assuming future traffic demand, there will be ongoing demand for mobile-related projects.

12

(Unit: ¥100 million) (Unit: ¥100 million)

Source: KDDI Results Briefing Materials Source: Softbank Group Results Briefing Materials (First quarter, fiscal year ending March 31, 2016)

KDDI Capex (payment) Softbank Capex(Telecommunications business in Japan)

(Japan standards) Targets (International accounting standards)

Full-Year

Mar. 2015

First-Half Full-Year(Forecast)

Mar. 2016

First-Half

Mobile

Fixed(Includes UQ)

1,282

1,942

1,238

1,312

3,224

6,677

2,551

6,000

COMSYS Group materials: Simple total for five companies; NCC Engineering business

Orders received at COMSYS Group (NCC)


350340

142

198

ResultsMar. 2014

470

220

250

ResultsMar. 2015

395

212

183

195

155127

Results Target

Second-half

First-half

Mar. 2013 Mar. 2014 Mar. 2015 Mar. 2016(Forecast)

Mar. 2017(Forecast)

3,9003,900

7,1256,316

Softbank platinum band(Unit: ¥100 million)

5,355

III-3. Trends in NCC Business

KDDI• apital expenditures in first half down ¥63.0 billion from the same period in

the previous term, progress rate of 42.5%.• Mobile investment shifting to improvement of network quality with area

expansion already completed.

Softbank• Capital investments peaked and moving toward generation of free cash

flow (FCF).• Required investment in steel towers has run its course.

COMSYS Group• First half fell short of previous term and forecasts due to restraint and

decline of carrier investment.• Area expansion, including base station construction, already complete.• Expectation of work for network acceleration and new frequencies (3.5GHz

band) in the future.

13

III-4. Forecasts for Mobile Data Traffic<Current Status>• Not only is the volume of mobile data traffic increasing, but the form is also

changing significantly›› Per capita traffic is rising (World: approximately 1.8-fold/year, Japan:

approximately 1.4-fold/year)›› Tendency for concentration in urban areas and increase in local-area traffic›› Possibility of further increases in traffic in the future due to diversification

in communications devices (M2M, IOT, etc.)

<Forecast for 2020s>• While precise forecasting is difficult, it is expected that mobile data

traffic will continuously rise, considering the diversification of com-munications devices, user needs for ultra-high-speed communica-tions, and the use of diverse radio waves.

• Assuming that the annual rate remains at around 1.5 – 2-fold in the future, it is possible that traffic in the 2020s will be over 1,000 times that of 2010.

Average monthly traffic volume (Japan)

Promoting 4K and 8K (schedule draft)[Vision for 2020]

Trends and forecasts for Internet of Things (IoT) Increase in traffic volume in 2020s

2015 2016 2017 2018 2019 2020

Source: Data published by Ministry of Internal Affairs and Communications

CSCATV, etc.

BS

Expansion in number of channels

etc

Rio Olympics

Rugby World Cup

2020 Tokyo Olympics

4K broadcasts

4K and 8K broadcasts4K and 8K trial broadcasts

1,032.3

729.9

469.8

274.3

1,200(Gbps) (100 million items)

1,000

800

600

400

200

0

600

500

400

300

200

100

0

Source: Data published by Ministry of Internal Affairs Source: and Communications

Source: Data published by Ministry of Internal Affairs Source: and Communications

1.41-fold increase in one year

June 2015June 2014June 2013June 2012

Main factors supposed to include increase in the number of LTE subscribers held by carriers and growth in use of high volume content such as video

An explosive expansion is foreseen (5.1-fold in ten years) in IoT, or the number of things connected to the Internet

2011

104

242

530

2015 2020 2010 202XSource: Prepared by Comsys based on information concerning the Radio Policy Vision Meeting,Source: NTT DOCOMO

Over 1,000 times

Wearable devices

Smartphones and tablets (Video streaming, healthcare, education, etc.)

Domestic appliances 4K/8K

Automobiles and sensors

Traffic

14

III-5. NTT DOCOMO Network

March 2014 March 2015 March 2016 • • • March 2020

LTE

LTE-Advanced

5thGeneration

700MHz band

800MHz band (receiving max. 75Mbps)

1.5GHz band (receiving max. 112.5Mbps)

1.7GHz band (receiving max. 150Mbps)

3.5GHz band (TDD)

2GHz band (receiving max. 112.5Mbps)

4G5G

Toward 1 Gbps300 Mbps262.5 Mbps225 Mbps 370 Mbps

MIMO Upgrade,

etc.

3.5GHzBand

CA Upgrade

(3CC)

CA Speed Up

CA Launch

*1

*2*3

Under development5th generation frequencies: 3 – 30GHz bands

*1. Multiple patterns of bundling frequency bands have been achieved other than those described above.*2. CA (carrier aggregation): technology for bundling multiple frequency bands to improve communication speed*3. MIMO: technology for receiving and transmitting different signals simultaneously from multiple antennas Source: Prepared by C0MSYS based on NTT DOCOMO materials

15

IV-1. Medium- to Long-Term Targets

March 2012 March 2013 March 2014 March 2015 March 2016(Targets)

March 202X(Forecasts)

2,958

(Unit: ¥100 million)Figures in parentheses: sales composition ratio

Net Sales by Segment (Full Fiscal Year)

3,1603,313 3,286 3,310

376

445

336

1,800

(72%)

(28%)(28%)

(33%) (37%)

(63%)(67%)

(73%)(72%) (72%)

(27%)

1,909

409

489

352403

524

447

1,938 1,836

356

537

554 650

575

355

1,730 (50%)

(50%)

NCC

NTT

ITIT


and Other

4,000

Non-Carrier-Related businessCarrier-Related Business

• To steadily expand non-carrier-related business (social systems and IT solutions business) as sales composition ratio, primarily solar construction projects (EPC business) with objective of top-line expansion

• Carrier-related business, primarily fixed line, expected to gradually decline in the future. Therefore, we plan to further expand sales for non-carrier-related business over the medium to long term with a target of 50% as sales composition ratio.

• Moreover, we are aiming for ¥400.0 billion in net sales over the medium to long term by promoting new business such as post solar and expanding business segments through alliances and M&As.

16

IV-2. Solar Power-Related Business

Solar Power Construction (EPC) Business

Solar Power Generation (IPP) BusinessSteady investment in first half with amount of investment to reach almost ¥8.0 billion at end of current fiscal year

Results Up toFiscal Year Ended March 31, 2015

FY March 2016 FY March 2017 and BeyondTargetsFirst-Half Results Second-Half Targets

Power stations

Hitachiota City, Ibaraki PrefectureShowa-mura, Gunma Prefecture

Tsu City, Mie PrefectureKita-Ibaraki City, Ibaraki Prefecture

Kato City, Hyogo Prefecture

Tsukuba City, Ibaraki Prefecture (completed June 2015)Iga City, Mie Prefecture

(completed September 2015)

Northern Kanto(Completion scheduled for December 2015)

Kyusyu(Completion scheduled for December 2015)

Other 2 projects

Northern Kanto(Completion scheduled for March 2017)

Tohoku(Completion scheduled for May 2017)

Other 6 projects

Volume of power

generated

Single year — 3.7MW 5.7MW 40.4MW

Cumulative total 14.7MW 18.4MW 24.1MW

64.5MW*Also considering utilization for PPS business

Investment

Single year — ¥1.2 billion ¥1.8 billion ¥12.6 billion

Cumulative total ¥4.5 billion ¥5.7 billion ¥7.6 billion ¥20.2 billion

40

100

60

20

60

Mar. 2013 Mar. 2014 Mar. 2015 Mar. 2016 Mar. 2017 Mar. 2018 Mar. 2019 Mar. 2020

(Unit: ¥100 million)Orders received

expected to be stable for next few years

190

220

120

2Q4Q

Due to favorable first-half performance, EPC business is reaching peak and orders received in the fiscal year ending March 2016 is expected to exceed the previous term due to favorable first-half performance

17

IV-3. Progress in Post Solar Development Business (1)Areas of Ecological Innovation

<Environment and Energy>Areas of Urban Revitalization Innovation

<Nationwide Resilience>Areas of Community Revitalization Innovation

<Community Development>

Already

introduced

(1) Solar power generation (IPP)(2) Solar power construction (EPC)

• Development of new projects (Floating/carport/ agriculture-model solar systems)

(3) Grey water business(4) Industrial Waste Recycling Business

• M&A with industrial waste recycling company in Hokkaido• Commercialization of industrial waste business in Shinetsu area

(1) Repair of NTT facilities• Increase in infrastructure-related work expected

(2) Full-scale earthquake reconstruction(3) Removal of utility poles

• Aim to expand orders received in Tohoku area

(4) Water and sewerage facilities• Plan expansion into Nagoya and Osaka taking advantage of successful performance in Tokyo Approx. ¥2.0 billion (this fiscal year) ¥3.0 billion (in 3 years’ time)

(5) Renovation of Shuto Expressway• Expand into NEXCO work leveraging Shuto Expressway track record• Success in receiving first order (approx. ¥500 million), leverage track record to expand Approx. ¥1.0 billion (this fiscal year) ¥3.0 billion (in 3 years’ time)

(1) Agricultural engineering• Develop Joshinetsu area business in collaboration with Kawanakajima Kensetsu• Success in receiving first order (approx. ¥100 million), leverage track record to expand

(1) Effective utilization of assets• Enhance property development business through utilization of idle real estate• Start commercialization of first projectBusiness investment ¥12.0 billion (in 3 years’ time)

(2) Okinawa projects• Launch of project team to acquire projects for develop-

ment and promotion of Okinawa

Short- to

medium-term

(1) Wood biomass• Commercialization combined with heat supply in small-scale category

(2) Energy Service Company (ESCO) business • Implement capital tie-ups with allied companies

(3) Electricity retailing (PPS)• Developing business with Eco Japan acting as electricity retailer• Collaborate with COMSYS Create’s power generation business

(4) Smart grid• Re-enter smart grid business leveraging qualifications

as an electrical construction company and a successful track record

• Also seek to enter new, expanding businesses, such as HEMs. ¥1.0 billion (in 3 years’ time)

(1) Water treatment and electrical installation work• Leverage track record to expand into Kansai and Kyushu areas• M&A with engineering companies in Shinetsu region

(2) Revitalization and upgrading of urban infrastructure• Long-term infrastructure plans for major cities

(1) Tokyo Olympics-related work• Establishment of venues, transportation networks, accommodation, etc.

(2) Development of area around Shinagawa Station• Utilize land rights to COMSYS Shinagawa Building to be actively involved in landowner redevelopment meetings

Medium- to

long-term

(1) Geothermal heat pump(2) Small-scale geothermal power generation(3) Smart cities

(1) Concession (1) Region creation projects

18

IV-4. Progress in Post Solar Development Business (2)

Receipt of order for first project with full-scale expansion from next fiscal yearSize of agricultural engineering market COMSYS Group civil engineering business

Current fiscal year budget: approx. ¥240.0 billionFuture work volume on the increase, partly due to business environment, including TPP prospects

Expand business field from communication related civil engineering work into diverse sectors

Promotion of agricultural village development program accompanying formulation of Japanese Ministry of Agriculture, Forestry and Fisheries’ Measures to Establish and Preserve Agricultural Production Infrastructure Aimed at Strengthening Competitiveness and Developing National Resilience

• Development of larger farms and multi-functionality for farming land• Earthquake-proofing• Repair and updating

Water conservation facility maintenance and rationalization projectsIrrigation and drainage improvement projects

• Communication related civil engineering workConstruction of Japan’s telecommunications infrastructure after WWIITrack record in underground installation of electrical cables from ducts and cable tunnels

• Water supply and sewerage work2011 first order received in Tokyo ››› Rank A in 2014

• General civil engineeringCapital tie-up with Kawanakajima Kensetsu ››› Kawanakajima’s track record in slope construction, etc.

Leverage extensive civil engineering track record to enter agricultural engineering market where expansion is expected

Successful bid for first project (Kanto Agricultural Administration

Office: ¥100 million)

Aim for at least three projects a year

Participatein bidding

Win first project

Gain stable orders

Acquire know how through construction

project work

Improve overall performance appraisal score based on

actual business performance

19

IV-5. Profit Improvement at Ecosystem Japan Group

Generating definite profit amid challenging market environment

135

110 120 130

Net Sales(Remarks)• Decline in demand for residential solar (due to increase in rate of consumption tax, abolition of subsidy, etc.)• Impact from pending grid connections, etc.

60


2 2 4 7OperatingIncome

-3

Mar. 2015Results

Mar. 2016Target

Mar. 2017Target

Mar. 2018Target

Mar. 20162Q Results

Note: Amortization of goodwill not included.

[Measures to increase sales]• Strengthen sales of smart house products such

as storage batteries• Expand solar installation business for public

disaster-prevention facilities• Strengthen the construction and maintenance

of non-Ecosystem Japan solar-power systems• Enter electric power retail business

[Measures to reduce expenses]

• Reduce sales promotion expenses

• Streamline organization

• Review salary payment structure

• Revise workflow and leverage IT

20

V-1. Additional Measures for Shareholder Returns

Retire treasury stock for ¥7.5 billion and acquire additional treasury stock for ¥3.0 billion

500425

45533.58 million shares

(23.0%) 28.61 million shares(20.3%)

30.61 million shares(21.7%)

-75Additional 30

September 30 November 30 – March 31 (expected)

Acquired 50

Treasury StockNum

ber of shares issued

Retirement ofapproximately

5 million shares Additional acquisition of

2 million shares

[Share price] Calculated at 1 share = ¥1,500, figures in parentheses show percentage of treasury stock holding


Retirement(Note 1)

45

Acquisition(Note 2)

Application

percentage of treasury stock holding

n

M&A targets<Areas of ecological innovation>• Energy business (wood biomass, geothermal)• Geothermal heat pump business

››› Air conditioning and heat-related equipment installation companies

<Areas of urban revitalization innovation>• Road-related business (removal of utility poles, road paving, etc.)• Water and sewerage business

››› Road construction companies and water supply construction companies

<Areas of community revitalization innovation>• 2020 Tokyo Olympics-related work (establishment of venues,

transportation networks, etc.)• Development of area around Shinagawa Station

››› Air conditioning and electrical equipment installation companies

<Industry restructuring>

Proactively expand business areas compatible with existing operations

Results of Main Recent M&As Conducted through Share Exchange• Central Building Services (April 23, 2014)• Kawanakajima Kensetsu (September 30, 2014)• Toa Kenzai (August 31, 2015)• Nippon After Kogyo (scheduled for December 1, 2015)

Notes: 1. 4,977,886 shares to be retired2. Acquisition period from November 9, 2015 to March 31, 2016

Before retirement


After retirement 141.00 million shares

21

V-2. Shareholder Returns Policy (Dividends and Acquisition of Treasury Stock)

Total return ratio to exceed 70% due to acquisition of additional ¥3.0 billion in treasury stock

March 2011 March 2012 March 2013 March 2014 March 2015 March 2016 (Planned)

Dividends per Share

(annual)

Interim ¥10 ¥10 ¥10 ¥10 ¥15 ¥15

Year-end ¥10 ¥10 ¥10¥15

Ordinary dividends: ¥10+

Commemorative dividends: ¥5

¥15 ¥20

Consolidated Payout Ratio 27.1% 36.0% 18.7% 18.4% 21.0% 23.1%

Total Return RatioDividends + treasury stock

Net income58.3% 77.7% 48.7% 66.9% 66.2%

52.6%

70.2%

Number of shares of treasury stock

at the end of the period


18.90million shares

22.74million shares

28.04million shares


33.58million shares

(As of September 30, 2015)

ROE 6.1% 4.4% 7.9% 9.4% 9.0% —

200

100

150

50

(Unit: ¥100 million)Net Income

(Target)

Dividends71 30

25

132

40

24

163 167 17080

29

75

35

50

39

30

9530

25

Acquired treasury stock

Additional acquisition

Note: 4,970,000 shares scheduled to be retired on November 30, 2015

(Note)

22

Creating a Platform To Drive Optimal Progress of “Construction Operations ”Marketing operations

Orders received Design

Workflow

Project/daily report Estimates Contract Execution Completion

Engineering operations

Invoicing/completion Financial accounting Management accounting

Accounting and account settlement

Missioncritical

systemsComstar front-end (IntraMart)/Comstar back-end (SAP) Comstar

database

NTT-relatedbusiness

Private-demandbusiness

Mobilecommunication

system

Fixed-line

ClientClient

EDI contract

Mobile communication construction IT platformOrder

information(DEAR)

Processmanagement

(Darwin)

Completioninformation

(DEAR)Standard onsiteworkflow usingmobile tools

Standard onsite workflow usingmobile tools

EDI completedAccess-related construction IT platformInformation

deliverysupply chain

Operation processing systems (USSS, ASSS, IRAKS, NCPC, etc.)

Private-demandsystems suchas OBPM

*1: Reports on work procedures, detailed instructions/reports on quality, progress, efficiency, time, etc.

Data linkbetweensystems

Data Warehouses(Data application function)

1. Processing and introductionInformation matching

2. Reference Integration/information sharing

3. Analysis Business analysis/information use

Basic Concepts• Figure out transparently on-site work process on mobile devices and automatically optimize system structures according to standardized work flow• Build data flow-through system via data warehouse to integrate construction management in each business

Businessdomain

VI-1. Overview of Construction IT Platform

23

VI-2. Construction IT Platform Results DarwinMobile: Construction IT Platform in Mobile Construction

FY March 2014

Before adoption

FY March 2015

After adoption at head office

From FY March 2016

After adoption nationwide

Profit

Costs Boost sales while curbing cost increases

About 5%

Productivity

improvement

About 20%

Results of adoption

Initial fiscal year with limited adoption, but a large number of LTE projects constructed at similar cost to the previous fiscal year, resulting in a 5% increase in productivity this fiscal year

Further results expected in the future• Increase in adoption rate to 100%• Establishment of best practices• Improvement in operational efficiency of • construction IT platform

Achieve an increase in productivity of around 5% this fiscal year and aim for an improvement of about 20% in the future

24

VI-3. Future Outlook for Construction IT Platform

STEP 0.

Current situation

STEP 1.

Adoption for standard projects

STEP 2.

Expansion to diverse projects

STEP 3.Entering construction projects in different construction industries

Aiming to expand scope of adoption

(Contribution on profit front) Improving existing business

(Contribution on profit ad sales front)Acquiring new business

Present Future

Mobile projects• Adoption for LTE projects

NTT-AC and NTT-NW projects and NCC projects• Aiming to adopt for small- to medium-scale, repetitive, standard projects from single customers (each telecommunications carrier) Productivity improvement from adoption of construction IT platform could form catalyst for industry reorganization

Construction projects in different constructionindustries (as a general contractor)

• Aiming to expand to entire construction industry• based on the COMSYS Group’s business performance • in the telecommunications construction industry

Seeking M&A of construction companies outside the telecommunica-tions industry triggered by productivity improvements due to IT tools

IT solutions and social systems projects• Aiming to expand to diverse projects from public- and private-sector customers utilizing expertise from STEP 1

Improve productivity in construction IT platform to enable promotion of M&As in legacy sectors

25

VII-1. Operating Results by Year (Supplementary Materials)

Operating Margin (%)

Net Sales (Unit: ¥100 million)

5.7%

5.0% 4.9%

4.3%3.7%

4.3%

7.1%

8.3% 8.4% 8.5%

FY March 2007(Fiscal 2006)









FY March 2016Targets

3,365

192162 156

125 117

225

276 280275

125

3,275 3,313 3,3103,2863,160

2,9582,9303,1543,211

TSUKENNet Sales

(-6.2%) (+6.8%)

Operating Income (Unit: ¥100 m

illion)

26

VII-2. Progress on COMSYS WAYa Structural Reforms FY March 2009(Fiscal 2008)

Spin-off of information

business

Construction of common

platform

Establishment of prime

contractor construction

management

Expansion of centralized

purchasing within the Group

Strategies to strengthen

management base

• Rationalization of

personnel

• Streamlining of assets

TSUKEN management

integration

Reconstruction of Group

business operation

system

Reconstruction of Group

business operation system

IT platform construction

of Access-related

construction

IT platform construction

of mobile-related

construction

TSUKEN Group

reorganization

Nationwide movement of personnelOperation of construction IT platformPromotion of Tokyo Olympic strategy







Group Innovation 2010

• Establishment of COMSYS JOHO System

• Introduction of Comstar

• Standardization of business process reengineering (BPR) and workflow

• Roll-out of purchasing system from Nippon COMSYS to other Group companies

• Transition to nationwide construction system for network-related operations

• Clarification of roles with prime contractor affiliates (dual stratification)

• Personnel reductions of 500 from Group overall

• Fair evaluation of software assets

• Disposal of idle assets

• Amalgamation of mobile-related subsidiaries

• Amalgamation of COMSYS access-related subsidiaries

• Roll-out of User Site Support System (USSS) and Access

Site Support System (ASSS) mobile

• Optimization of Hokkaido construction area

• Restructuring of mobile and network businesses

• Roll-out of Darwin mobile

• Amalgamation of TSUKEN access-

related subsidiaries

COMSYS WAY— Sustained, More In-Depth

Structural Reform

COMSYS WAY a

— Advance of structural reforms and top-line growth

Principal StrategiesOperating M

argin

4.9%4.3%

3.7%

4.3%

7.1%

8.3% 8.4%

27

VII-3. Medium- and Long-Term Vision

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

(Unit: 100 million)

FY 2006 2010 2016 2019 2022 20232013 2014(Target)

Non-NTT businessNTT business

Electrical CommunicationsEngineering (not including NCC)

Social System

IT

NCC

NTT-Mobile

NTT-Network

NTT-Access

¥345 billion ¥400 billion

Business relating to “National Resilience”measures and the 2020 Tokyo Olympics

Participate in Realization of ICT Smart Towns

Expansion of business with existing clients and expansion of alliance businessIncrease project orders from government and municipal offices

Participation in Smart Grid, Smart City developmentSolar power generation business (mega and small-scale systems)

LTE (3.9G) constructionNew frequency band (700M) related construction: au and eAccess

LTE-Advanced (4G: LTE-A) construction

Wireless MAN-Advanced construction

LTE (3.9G) construction

New frequency band (700M) related construction

LTE-Advanced (4G: LTE-A) construction

5G (LTE-B) constructionMigration to new nodes

IP network creation

Full-scale earthquakereconstruction


Olympics preparations

Installation of smart TV compatible infrastructure (includes 4K and 8K compatible)

Removal of utility poles

Building high-speed, high-capacity networks (Internet traffic: Annual increase of 10% to 20%) (Mobile communication: Annual increase of 100% or more)

+¥55 billion(Net Sales)

Financial Results Briefing Materials for FY March 2014

28

VIII-1. COMSYS Group

COMSYS Holdings CorporationSecurities code: 1721 (Consolidated Results for FY March 2015)

Date of Establishment: September 29, 2003 Orders Received: ¥336.9 billionPaid-in Capital: ¥10 billion Net Sales: ¥328.6 billion

Number of Employees: Consolidated 9,931 Operating Income: ¥27.6 billionNon-consolidated 45 Net Income: ¥16.7 billion

http://www.comsys-hd.co.jp/

(As of March 31, 2015)

Number of Consolidated Subsidiaries: 16 companies




Number of Consolidated Subsidiaries: 1 company

Nippon COMSYS Corporation

Head Office:Shinagawa-ku, Tokyo

Establishment:December 20, 1951

Paid-in Capital: ¥31,140 million

Number of Employees:Consolidated 5,093Non-consolidated 3,046

Intra-Group Consolidation*Net Sales: ¥209.0 billionOperating Income: ¥19.9 billion

SANWA COMSYS Engineering Corporation

Head Office:Suginami-ku, Tokyo

Establishment:September 12, 1947


Number of Employees:Consolidated 1,437Non-consolidated 697


Head Office:Nagano, Nagano

Establishment:January 23, 1960

Paid-in Capital: ¥450 million



Head Office:Sapporo Hokkaido

Establishment:April 2, 1951




Head Office:Minato-ku, Tokyo

Establishment:April 1, 2009


Number of Employees:Consolidated 510Non-consolidated 366


Head Office:Minato-ku, Tokyo

Establishment:October 1, 2003


Number of Employees:Non-consolidated 154


TOSYS Corporation TSUKEN Corporation COMSYS JOHOSystem Corporation

COMSYS Shared Services Corporation

* Intra-group consolidation means that while transactions within each of the five groups are eliminated, there is no elimination of transactions between any groups within the COMSYS Group.

29

VIII-2. Business Segments (1)

16.4%

10.8%

55.9%

16.9%

Note: COMSYS Shared Services Corporation (CSS) engages in administrative operations (general affairs, personnel, finance, salaries, social insurance, and so forth), commonly required by the Group companies, along with the temporary staff placement business.

BusinessSegments

Net Sales by Business Segment

(As of March 31, 2015)Business Overviews Business Domains

Principal Business Conducted

COMSYS SANCOM TOSYS TSUKEN COMJO CSS

NTT

Engineering

The COMSYS Group carries out electrical and telecommunications engi-neering work for the NTT Group. In recent years, the COMSYS Group has also received contracts for facility management such as maintenance and repair operations.

Principal Business PartnersNTT East, NTT West, NTT Communications, NTT Docomo, etc.

• Access (“Outdoor” projects) Installation of optical fibers, and so forth. ○ ○ ○• Network (“Indoor” projects) Construction and installation of switching and transmission equipment, and so forth.

○• Mobile Construction of mobile phone base stations, wireless relay base stations, etc.

○

NCC

Engineering

The COMSYS Group builds electrical and telecommunications facilities, cable television and ancillary equipment for telecommunications service providers outside the NTT Group, known in Japan as New Common Carriers (NCCs).

Principal Business PartnersKDDI Group, Softbank Group, and so forth.

• Telecommunications facilities for NCC Fixed-line and mobile telecommunications 　　 facilities

• Cable TV projects, and so forth.

○

IT Solutions

The COMSYS Group combines the extensive expertise it has accumulated in the telecommunication carrier business with advanced network tech-nologies to provide total solution services in the IT area, from the design and planning of system integration optimized for customers’ businesses to the maintenance of their operations.

Principal Business PartnersVarious private companies, national and local government offices, public agencies, and so forth.

• Network integration-related solutions• System integration-related solutions• LAN and WAN projects• Wi-Fi projects• Development and commissioning of

all types of software• Maintenance and operation

○ ○ ○ ○ ○

Social

System-Related

and Other

The COMSYS Group designs, plans, and installs electrical facilities for communication-related civil engineering and general civil engineering projects as well as for facilities and buildings. It also constructs buildings, warehouses, factories and other buildings. In addition, it engages in envi-ronment-related businesses covering disaster prevention equipment, solar power generation systems, and urban infrastructure development.Principal Business PartnersPublic agencies, national and local government offices, various private companies, and so forth.

• Communication related civil engineering works• and general civil engineering works• General electrical facilities works• Construction of multi-use underground• cable conduit facilities (C·C·BOX)• Building construction and ancillary facilities works• Environmental solutions• Leasing and temporary staff placement business

○ ○ ○ ○ ○ ○

30

Business Segments

Specific Lines of Business Main Customers

NTT

Engineering

Construction of telecommunications facilities

for telecommunications carriers(NTT Group)• Nippon Telegraph and Telephone East Corporation• Nippon Telegraph and Telephone West Corporation• NTT Communications Corporation• NTT DOCOMO, Inc. Others

NCC

Engineering

(KDDI Group)• KDDI Corporation• UQ Communications Inc. Others

(SoftBank Group)• SoftBank Corp. Others

IT Solutions

Provision of total solution service in IT field

Private corporations, government and municipal

offices, local governments, etc.

Social

System-Related

and Other

Electrical, civil engineering and other construction projects

related to urban infrastructure

Private corporations, government and municipal

offices, local governments, etc.

VIII-3. Business Segments (2)

Access projects

Network projects Mobile projects

Server construction Call center maintenance

Electrical facilityprojects

Solar construction projects

Communications and civil engineering projects

Data center construction

31

VIII-4. Corporate History

After the San Francisco Peace Treaty was concluded in 1951, Japan was free to pursue its own plans to build a telecommunications network. As the country went ahead with this national project, it became necessary to quickly set up a telecommunication construction company that could build infrastructure across the county. In 1951, one year before the establishment of Nippon Telegraph and Telephone Public Corporation (currently NTT), our original predecessor was founded; its name was Nippon Telecommunications Construction Co., Ltd. Given its vital role in building Japan’s new telecommunications infrastructure, the company was established by the country’s captains of industry at the time. The founder of the company was Taizo Ishizaka, who later became regarded as the “prime minister of Japan’s business world,” while Takeshi Kajii, the first president of Nippon Telegraph and Telephone Public Corporation, served as the company’s advisor.

Nippon COMSYS Corporation

Dec. 1951 Founded as Nippon Telecommunications Construction Co., Ltd. (NTK).

Aug. 1952As the first firm in Japan to hold top certifications in cable laying, machinery installation, and radio facilities projects, designated approved contractor by Nippon Telegraph and Telephone Public Corporation (now NTT).

July 1962 Listed on the Second Section of the Tokyo Stock Exchange.

Nov. 1972 Listed on the First Section of the Tokyo Stock Exchange and Osaka Securities Exchange.

July 1990 Name changed from Nippon Telecommunications Construction Co., Ltd. to Nippon COMSYS Corporation.

Feb. 1991 Certified as comprehensive contractor for telecommunications construction projects by NTT.

Mar. 1994 Paid-in capital increased to ¥10 billion.

Mar. 1997 Orders received and net sales exceed ¥200 billion.

Aug. 1999 Paid-in capital increased to ¥30 billion.

Dec. 2001 50th anniversary of the company’s founding.

Mar. 2002 Selected as one of 225 companies included in the Nikkei Stock Price Average.

COMSYS Holdings Corporation

Sept. 2003 COMSYS Holdings Corporation established. Shares listed on the First Sections of the Tokyo Stock Exchange and the Osaka Securities Exchange (Securities code: 1721).

Oct. 2003 COMSYS Shared Services Corporation established to be the common provider of business process outsourcing services for the COMSYS Group.

Apr. 2005SANWA ELEC Co., Ltd. renamed SANWA COMSYS Engineering Corporation, and its business integrated with the telecommunications carrier operations of Nippon COMSYS Corporation.

Apr. 2009 Information systems business related to software development outsourcing spun off from Nippon COMSYS Corporation to form COMSYS JOHO SYSTEM Corporation.

Oct. 2010 TSUKEN Corporation brought under COMSYS Holdings management.

Sept. 2013 10th anniversary of the COMSYS Holdings Corporation.

After the San Francisco Peace Treaty was concluded in 1951, Japan was free to pursue its own plans to build a telecommunications network. As the country went ahead with this national project, it became necessary to quickly set up a telecommunication construction company that could build infrastructure across the county. In 1951, one year before the establishment of Nippon Telegraph and Telephone Public Corporation (currently NTT), our original predecessor was

founded; its name was Nippon Telecommunications Construction Co., Ltd. Given its vital role in building Japan’s new telecommunications infrastructure, the company was established by the country’s captains of industry at the time. The founder of the company was Taizo Ishizaka, who later became regarded as the “prime minister of Japan’s business world,” while Takeshi Kajii, the first president of Nippon Telegraph and Telephone Public Corporation, served as the company’s advisor.

32

Number of Shares Issued and Number of Shareholders Composition of Shareholders(Number and percentage of shareholders by type)

Authorized: 580,000,000 shares

Issued: 145,977,886 shares

Number of Shareholders: 10,030

ShareholdersShares Held (Thousands)

Percentage of Total (%)

COMSYS Holdings Corporation (Treasury Stock) 33,589 23.01

The Master Trust Bank of Japan, Ltd. (Trust Account) 15,536 10.64

Japan Trustee Services Bank, Ltd. (Trust Account) 10,194 6.98

Japan Trustee Services Bank, Ltd. (Sumitomo Mitsui Trust Bank, Limited Retrust Account / Sumitomo Electric Industries, Ltd. Employee Pension Trust Account) 5,166 3.53

Trust & Custody Services Bank, Ltd. (Investment Trust Account) 3,198 2.19

Nippon Life Insurance Company 2,590 1.77

BNP Paribas Securities (Japan) Limited 2,400 1.64

CBNY-GOVERNMENT OF NORWAY 1,619 1.10

Meiji Yasuda Life Insurance Company 1,544 1.05

NEC Corporation 1,408 0.96

VIII-5. Stock Information (As of September 30, 2015)

Financial Institutions 36.7% (63 owners)

Individuals 10.3% (9,454 owners)

Treasury stock23.0% (1 owner)

Foreign Companies and Individuals 20.7% (303 owners)

Securities Companies 3.6% (45 owners)

Others 5.7% (164 owners)

33

VIII-6. Organization Chart/Board Members (As of June 26, 2015)

Organization Chart Directors and Audit & Supervisory Board Members

Title Name

President and Representative Director Hajime Takashima

Director Noriaki Ito

Director Takashi Kagaya

Director Hirofumi Yamasaki

Director Akio Ogawa

Director Hidetoshi Miura

Director Tsuyoshi Nishiyama

Director Hitoshi Kumagai

Director Kenichi Sato

Director Hidehiko Ozaki

Director (Outside Director) Takeshi Goto*

Director (Outside Director) Kenichi Narumiya*

Standing Audit & Supervisory Board Member Hiroshi Komori

Audit & Supervisory Board Member Hideki Niimi

Outside Audit & Supervisory Board Member Masahiko Miyashita*

Outside Audit & Supervisory Board Member Takaharu Saegusa*

Board of Directors

IR Department

President

Finance & Accounting Department

Board of Corporate Auditors

General Affairs Department

Senior Management Committee

Personnel Department

CSR Committee

Compliance Committee

Risk Management Committee

Internal Control Audit Department

Internal Control Office

Internal Audit Office

Personal Information Protection and Administration Committee

Corporate Planning Department

* The two Outside Directors and the two Outside Audit & Supervisory Board Members have been reported to the Tokyo Stock Exchange as independent officers.

Interim Results for the Fiscal Year Ending March 31, 2016

— Data Book —

35

IX-1. Consolidated Statements of Income (COMSYS.HD Consolidated)

Recurring Profit

Selling, General and Administrative Expenses

Operating Income

(Operating Margin)

Net Income Attributable to Owners of Parent

(Net Profit Margin)

(Recurring Profit Margin)

Orders Received

Net Sales

Gross Profits

(Gross Profit Margin)

Full YearTargets

ProgressRate

(a) (c) ⁄ (f)

26.7%

24.1%

47.9%

23.4%

49.0%

38.9%

33.6%

-33.8%

-39.3%

-6.8%

-41.3%

-6.2%

-10.8%

-24.8%

-9.1%

-17.3%

-4.1%

-18.2%

7.0%

-1.7%

-10.4%

-23

-44

-7

-46

-108

-155

-53

-2.4 p.p.

-2.6 p.p.

-2.5 p.p.

-1.3 p.p.

-4

-14

-4

-14

106

-22

-18

-1.2 p.p.

-1.0 p.p.

-1.0 p.p.

-0.3 p.p.

50

(3.8%)

83

(6.3%)

100

80

(6.1%)

1,520

1,310

180

(13.7%)

45

(3.5%)

68

(5.3%)

95

65

(5.1%)

1,626

1,287

161

(12.5%)

68

(4.8%)

113

(7.8%)

102

111

(7.7%)

1,735

1,442

214

(14.9%)

170

(5.1%)

285

(8.6%)

200

280

(8.5%)

3,320

3,310

480

(14.5%)


2Q Results

(c) (f)

2Q Results

(b)

2Q Targets

FY March 2015 FY March 2016FY March 2016

Notes: 1. Figures are rounded down to the nearest whole unit. Profit margin, percentages of increase and decrease and progress percentage data are calculated using a base unit of yen. Figures are rounded to the nearest first decimal place. 2. p.p. = percentage points

(e) ⁄ (b)(d) ⁄ (a)(c) – (a) (c) – (b)

PercentageDifference


Difference (d) Difference (e)

Comparisons with the Previous Term Comparisons with Forecasts

36

IX-2. Statements of Income for Each Company


Comparisons with Forecasts for the Full Year



13.3

8.4

(4.7%)

(4.5%)

21.1

(12.1%)

(4.8%)

8.1

7.8

175

219

11.8

4.9

(4.7%)

(4.5%)

19.5

(11.5%)

(2.9%)

7.9

7.6

170

212

7.0

1.0

(1.9%)

(1.7%)

8.9

(7.9%)

(0.9%)

2.1

1.8

113

146

6.5

0.3

(0.7%)

(0.6%)

7.1

(6.0%)

(0.3%)

0.8

0.6

120

146

11.2

0.5

(0.8%)

(0.7%)

12.5

(7.0%)

(0.3%)

1.4

1.3

179

207

12.2

10.9

(6.9%)

(6.9%)

29.9

(11.6%)

(4.2%)

17.7

17.7

257

308

-2.8 p.p.

-7.6

-17.8

-40.3

-31.1

-32.7

-85

-23

-3.1 p.p.

-2.9 p.p.

-1.6 p.p.

-0.9

-10.4

-17.4

-16.3

-16.4

-78

-101

-4.6 p.p.

-6.2 p.p.

-6.1 p.p.

-3.9 p.p.

0.5

0.7

1.7

1.3

1.2

-6

0

1.9 p.p.

1.1 p.p.

1.2 p.p.

0.6 p.p.

1.4

3.5

1.6

0.1

0.1

4

6

0.6 p.p.

0.0 p.p.

0.0 p.p.

1.9 p.p.

60.3

33.6

(6.4%)

(6.1%)

111.1

(13.3%)

(4.0%)

53.7

50.8

838

1,075

67.9

51.5

(9.2%)

(9.0%)

151.5

(16.4%)

(5.6%)

84.9

83.5

923

1,098

Recurring Profit


Operating Income(Operating Margin)


Net Income Attributable to Owners of Parent(Net Profit Margin)

(Recurring Profit Margin)

Orders Received

Net Sales

Gross Profits

COMSYS-G SANCOM-G TOSYS-G TSUKEN-GMar. 20162Q Results

Mar. 20152Q Results

Mar. 20162Q Results

Mar. 20152Q Results

Mar. 20162Q Results

Mar. 20152Q Results

Mar. 20162Q Results

Mar. 20152Q Results

14

(3.6%)

25

(8.8%)

10

285

290

27

(5.6%)

50

(11.9%)

23

424

414

25

(6.6%)

63

(10.9%)

38

577

587

121

(9.7%)

324

(15.5%)

203

2,090

2,090


Operating Income(Operating Margin)


Orders Received

Net Sales

Gross Profits

COMSYS-G SANCOM-G TOSYS-G TSUKEN-G

Difference Difference Difference Difference

13.3

(4.5%)

21.1

(12.1%)

7.8

175

219

7.0

(1.7%)

8.9

(7.9%)

1.8

113

146

11.2

(0.7%)

12.5

(7.0%)

1.3

179

207

60.3

(6.1%)

111.1

(13.3%)

50.8

838

1,075

Mar. 2016Full Year Targets

Mar. 20162Q Results Progress Rate Mar. 2016

Full Year TargetsMar. 20162Q Results Progress Rate Mar. 2016

Full Year TargetsMar. 20162Q Results Progress Rate Mar. 2016

Full Year TargetsMar. 20162Q Results Progress Rate

49.9%

34.3%

25.0%

40.1%

51.4%

45.1%

20.0%

3.4%

31.1%

35.3%

47.9%

35.7%

18.2%

39.7%

50.5%

49.4%

41.8%

33.1%

41.3%

53.0%

Notes: 1. Figures are rounded down to the nearest whole unit. Profit margin and progress percentage data are calculated using a base unit of yen. Figures are rounded to the nearest first decimal place. 2. Business transactions between operating groups have not been eliminated. 3. p.p. = percentage points

37

IX-3. Orders Received, Net Sales, and Contract Backlogs by Business Area (COMSYS.HD Consolidated)

NTT Engineering

Full YearTargets

ProgressRate

(a) (c) ⁄ (f)

55.9%-4.6% 19.3%40 149775 924884 1,655NCC Engineering 36.7%-34.8% -17.1%-68 -26155 128197 350IT Solutions 41.3%-16.4% -8.1%-47 -21265 243291 590Social System-Related and Other 45.5%-9.0% 1.5%-32 4325 329362 725

Total 49.0%-6.2% 7.0%-108 1061,520 1,6261,735 3,320


2Q Results

(c) (f)

2Q Results

(b)

2Q Targets


(e) ⁄ (b)(d) ⁄ (a)(c) – (a) (c) – (b)


PercentageDifferenceDifference (d) Difference (e)


Business Area

Contract Backlogs

Orders Received(Six months ended September 30)

NTT Engineering

Full YearTargets

ProgressRate

(a) (c) ⁄ (f)

41.3%-14.8% -1.6%-123 -11725 713837 1,730NCC Engineering 34.3%-30.1% -21.4%-52 -33155 121174 355IT Solutions 38.0%10.3% 4.0%20 8210 218197 575Social System-Related and Other 35.9%0.0% 6.1%0 13220 233233 650

Total 38.9%-10.8% -1.7%-155 -221,310 1,2871,442 3,310


2Q Results

(c) (f)

2Q Results

(b)

2Q Targets


(e) ⁄ (b)(d) ⁄ (a)(c) – (a) (c) – (b)




Business Area

Net Sales(Six months ended September 30)

NTT Engineering

(a)

19.9%118711593NCC Engineering -41.9%-354884IT Solutions -27.2%-54144198Social System-Related and Other 32.4%101415313

Total 11.0%1301,3211,190


2Q Results

(c)

2Q Results

FY March 2015 FY March 2016

(d) ⁄ (a)(c) – (a)

PercentageDifferenceDifference (d)


Business Area

Note: Figures are rounded down to the nearest whole unit. Percentages of increase and decrease are calculated using a base unit of yen. Figures are rounded to the nearest first decimal place.

38

IX-4. Orders Received and Net Sales by Detailed Business Area for Five Companies on a Non-Consolidated Simple Sum Basis (Results and Forecasts)

NTT Engineering

Full YearTargets

ProgressRate

(a) (c) ⁄ (f)

55.6%7.0% 15.2%32 64425 489457 88062.0%20.4% 27.4%19 2490 11495 18555.5%-2.2% 26.5%-7 66250 316323 57056.3%5.1% 20.3%44 155765 920875 1,635

NCC Engineering 36.4%-35.6% -17.7%-70 -27155 127198 350IT Solutions 40.2%-16.7% -5.5%-37 -10200 189226 470Social System-Related and Other 46.0%6.4% 8.5%11 15180 195183 425

Total 49.7%-3.5% 10.2%-51 1321,300 1,4321,484 2,880


2Q Results

(c) (f)

2Q Results

(b)

2Q Targets


(e) ⁄ (b)(d) ⁄ (a)(c) – (a) (c) – (b)




Business Area

Orders Received(Six months ended September 30)

Notes: 1. The non-consolidated simple sum data are for the following five companies: Nippon COMSYS Corporation; SANWA COMSYS Engineering Corporation; TOSYS Corporation; TSUKEN Corporation; and COMSYS JOHO SYSTEM Corporation.

2. Figures are rounded down to the nearest whole unit. Percentages of increase and decrease are calculated using a base unit of yen. Figures are rounded to the nearest first decimal place.

AccessNetworkMobile

Subtotal

NTT Engineering

Full YearTargets

ProgressRate

(a) (c) ⁄ (f)

41.9%-7.2% -0.7%-29 -2380 377406 90043.8%-15.8% 4.0%-15 380 8398 19040.2%-23.3% -3.0%-75 -7255 247322 61541.5%-14.5% -1.0%-120 -7715 707828 1,705

NCC Engineering 34.2%-30.7% -21.6%-53 -33155 121175 355IT Solutions 36.2%11.8% 6.4%17 9155 164147 455Social System-Related and Other 26.0%13.3% -0.2%11 -095 9483 365

Total 37.8%-11.8% -2.8%-145 -301,120 1,0891,234 2,880


2Q Results

(c) (f)

2Q Results

(b)

2Q Targets


(e) ⁄ (b)(d) ⁄ (a)(c) – (a) (c) – (b)




Business Area

Net Sales(Six months ended September 30)

AccessNetworkMobile

Subtotal

39

IX-5. Capital Expenditure, Depreciation and Amortization

145.1%35

29.8%627

41.4%933


Capital Expenditure

Tangible Assets

Intangible Assets

Total

2Q Results2Q ResultsDifference Percentage

difference

56.6%10

56.1%48

56.2%58

6.3% 124

2

21

23

22Depreciation and Amortization 46.6%52

Full Year Targets

March 2015 March 2016 March 2016

Comparisons with the previous term

Note: Figures are rounded down to the nearest whole unit. Percentages of increase and decrease are calculated using a base unit of yen. Figures are rounded to the nearest first decimal place.

Progress rate

40

IX-6. Consolidated Balance Sheets (Condensed)

As of September 30, 2015As of March 31, 2015As of September 30, 2015As of March 31, 2015

-215

2,640 2,425

(-231)

1,287

1,138

(+16)

2,640 2,425

402

-215

(-205)

(+4)

(-13)Net Assets

1,940

Long-TermLiabilities

91

CurrentLiabilities

607

ASSETS LIABILITIES AND NET ASSETS (Unit: ¥100 million) (Unit: ¥100 million)

Current Assets

1,518

Fixed Assets

1,121

• Property and equipment

• Investments and other assets

• Intangible assets

+14

+5

-3

+28• Retained earnings-41• Treasury stock, at cost

+48• Cash and cash equivalents

1,926

-139• Accounts payable—trade

*Equity ratio From 73.0% to 79.0%

-371• Notes and accounts receivable—trade

+104• Accumulated cost of construction in progress and other inventories

95

41

IX-7. Consolidated Cash Flow (Condensed)

As of March 31, 2015

334 382

As of September 30, 2015

Cash and Cash Equivalents

at End of Year

Cash and Cash Equivalents at End of Half Year

-35

Cash Flows from Investing Activities

-66

Cash Flows from Financing Activities

+8Other


• Acquisitions of property and equipment• Payments of loans receivable

-19-14

• Decrease in receivables—trade• Income before income taxes and other adjustments to net income• Increase in inventories• Decrease in payables—trade

-99-170

+376

+71

• Acquisitions of treasury stock• Cash dividends paid

-50-17

+48

+141

Cash Flows from Operating Activities

• Increase in cash and cash equivalents resulting from change of scope of consolidation +8

For further information, please contact:

IR Department

Telephone: +81-3-3448-7000 (direct)

Facsimile: +81-3-3448-7001

E-Mail: [email protected]

URL: http://www.comsys-hd.co.jp/

Cautionary Statement with Respect to Forward-Looking Statements

Forecast figures contained in these presentation materials are forward-looking statements that assume underlying risks and uncertain factors.

Accordingly, it should be recognized that actual results may differ from such forward-looking statements due to a variety of factors.

Important factors that could affect results include, but are not limited to, changes in economic conditions and social trends relevant to the Group’s business areas, and downward pressure on prices for the services provided by the Group owing to fluctuations in demand and intensified competition.

— COMSYS Group Management Philosophy —At the COMSYS Group, we are united as a Group and strive for strong partnership and collaboration with diverse external players in achieving our management philosophy.

• We will build a company that customers continue to choose through the construction of diverse infrastructure that carries our era forward.

• We will contribute to our country and local communities by building social infrastructure that supports affluent lifestyles.

• We will continue with unrelenting reform in our aim to further increase corporate value.

Documents

North America IR Presentation Materials - comsys-hd.co.jp · January 2016 North America IR Presentation Materials Materials for the First Half of the Fiscal Year Ending March 31,