Presentation of Performance for Fiscal Year Ended March 31

Presentation of Performance for Fiscal Year Ended March 31

Presentation of Performance Fiscal Year Ended March 31, 2018 May 11, 2018

Presentation of Performance for Fiscal Year Ended March 31

Contents I . Overview of Performance for the Fiscal Year Ended March 31, 2018 1. Highlights of Performance for the Fiscal Year Ended March 31, 2018 4 2. Details of Orders Received by Segment 5 3. Details of Net Sales by Segment 6 4. Details of Operating Income 7 5. Contract Backlogs 8 II . Business Plan for the Fiscal Year Ending March 31, 2019 1. Business Plan for the Fiscal Year Ending March 31, 2019 10 2. Forecasts of Orders Received by Segment 11 3. Forecasts of Sales by Segment 12 4.

Trends in NTT Fixed-Line Related Business 13 5. Trends in NTT Mobile Business 14 6. Trends in NCC Engineering Business 15 7. Trends in IT Solutions Business 16 8. Trends in Social System-Related and Other Business 17 III . Mediumand Long-Term Growth Strategy 1. Progress of COMSYS VISION 2020 19 2. IT Business Company Growth Targets 20 3. Social System Business Company Growth Targets 21 4. Business Expansion through M&A 22 5. Measures to Improve Productivity by Centralizing Operations 23 6. Profit Improvement Results Following Management Integration 24 7. Management Integration with Three Telecommunications Construction Companies in Western Japan 25 IV .

Shareholder Returns Policy 1. Shareholder Returns Policy (Dividends and Acquisition of Treasury Stock) 27

I. Overview of Performance For the Fiscal Year Ended March 31, 2018

  • 4 All-time highs recorded for orders received, net sales, and operating profit (Unit: ¥100 million) Performance Comparisons with the previous term Comparisons with forecasts Orders Received 4,022 +320 +122 Net Sales 3,800 +458 +0 Operating Income 303 +53 +18 Operating Margin 8.0% +0.5 percentage points +0.5 percentage points Note: Figures are rounded down to the nearest whole unit. Profit margin, and percentages of increase and decrease are calculated using a base unit of yen. Figures are rounded to the nearest first decimal place. I-1. Highlights of Performance for the Fiscal Year Ended March 31, 2018
  • Orders received surpassed the ¥400.0 billion mark for the first time as the Social Systems-Related and Other business remained strong
  • Net sales achieved forecasts backed by extensive contract backlogs, recording all-time high net sales
  • Marked an all-time high profit for the first time in three years, with profit rising above the ¥30.0 billion level as targeted in the mid-term plan
  • 5 I-2. Details of Orders Received by Segment The Social System-Related and Other business advanced rapidly, including the effect of M&As. (Unit: ¥100 million) Performance Comparisons with the previous term Comparisons with forecasts NTT Engineering 1,845 -190 +45 NCC Engineering 392 +107 +82 IT Solutions 604 +51 -15 Social SystemRelated and Other 1,180 +351 +10
  • NTT Engineering business: despite a significant year-on-year decline in reaction to special demand, orders received were higher than forecast due to MB orders received ahead of schedule
  • NCC Engineering business: orders received rose due to au base station construction and TV reception improvement projects
  • IT Solutions business: although corporate solution business fell short of forecasts, total orders received increased year on year due to alliance business and software development
  • Social System-Related and Other business: orders received increased as a result of the consolidation of Kando Co., Ltd. and the acquisition of large-scale construction projects
  • 6 I-3. Details of Net Sales by Segment The Group steadily completed a large volume of construction projects and achieved its forecasts. (Unit: ¥100 million) Performance Comparisons with the previous term Comparisons with forecasts NTT Engineering 1,859 +14 +14 NCC Engineering 357 +83 +62 IT Solutions 590 +40 -9 Social SystemRelated and Other 992 +321 -67
  • NTT Engineering business: sales increased due to favorable progress of MB projects, offsetting decline in sales due to reduction in AC maintenance processes
  • NCC Engineering business: recorded substantial sales growth due to strong orders received
  • IT Solutions business: although corporate solution business fell short of forecasts, total sales increased year on year due to software development
  • Social System-Related and Other business: recorded substantial sales growth due to the consolidation of Kando Co., Ltd. but fell short of forecasts due to delays in solar construction business, etc.
  • 7 Operating income was up significantly, with an increase in productivity due to the high volume of construction projects. I-4. Details of Operating Income
  • Standardization of quarterly workload volume of construction projects progressed and productivity increased due to high level of contract backlogs
  • Effect of measures such as work-style innovation contributed to profit growth
  • SG&A expenses reduced through cuts in personnel expenses and office expenses at Ecosystem Japan 250 303 285 +36 +6 +7 -3 -4 +2 +11 +53 (+21.2%) +18 (+6.5%) Target (Unit: ¥100 million) Performance in Previous Term Performance Net sales growth Productivity improvements Net sales growth Productivity improvements Effect of measures taken SG&A expense reduction SG&A expense reduction Kando Kando
  • Workflow standardization
  • and centralization of operations
  • Work-style innovation
  • Harnessing of IT
  • Flexible personnel movement
  • within Group

8 556 546 500 558 749 734 117 61 42 39 50 85 100 105 119 133 136 150 157 184 319 280 437 625 931 898 981 1,013 1,373 1,595 +31 +360 +222 (Unit: ¥100 million) NTT NCC Social System -Related and Other * IT *Kando Co., Ltd., which joined the Group in the fiscal year ended March 31, 2018, has no contract backlog because orders received and net sales are the same amount. FY March 2014 Beginning of Term FY March 2015 Beginning of Term FY March 2016 Beginning of Term FY March 2017 Beginning of Term FY March 2018 Beginning of Term FY March 2019 Beginning of Term The contract backlog increased further due to a growth of orders received in the Social System-Related and Other business.

  • I-5. Contract Backlogs
  • The contract backlog increased significantly due to last-minute solar construction projects (EPC) and new orders received for private-sector DC projects
  • Orders received from au grew, and the NCC Engineering business increased significantly
  • The contract backlog in the NTT-MB business increased further as orders scheduled to be received next fiscal year were brought forward

II. Business Plan For the Fiscal Year Ending March 31, 2019

  • 10 Planning on sales and profit growth due to high volume of contract backlog (Unit: ¥100 million) FY March 2018 Performance FY March 2019 Targets Comparisons with FY March 2018 Orders Received 4,022 4,000 -22 Net Sales 3,800 4,000 +199 Operating Income 303 320 +16 Operating Margin 8.0% 8.0% 0.0 percentage points II-1. Business Plan for the Fiscal Year Ending March 31, 2019
  • Orders received will remain at ¥400.0 billion, despite falling below previous fiscal year’s level
  • Aiming to achieve the mid-term target thanks to extensive contract backlogs
  • Operating income is projected to rise for the third fiscal year in a row and record an all-time high
  • 11 II-2. Forecasts of Orders Received by Segment Planning an increase in orders received in growth segments (Unit: ¥100 million) FY March 2018 Performance FY March 2019 Targets Comparisons with FY March 2018 NTT Engineering 1,845 1,755 -90 NCC Engineering 392 380 -12 IT Solutions 604 640 +35 Social SystemRelated and Other 1,180 1,225 +44
  • NTT Engineering business: forecasting a decrease due to impact of MB orders received brought forward in fiscal year ended March 31, 2018
  • NCC Engineering business: forecasting a decrease due to decline in TV reception improvement projects
  • IT Solutions/Social System-Related and Others businesses: planning increase with growth in orders received forecast due to effect of new consolidation and business company system
  • 12 II-3. Forecasts of Sales by Segment Forecasting sales growth due to effect of new consolidation, etc. (Unit: ¥100 million) FY March 2018 Performance FY March 2019 Targets Comparisons with FY March 2018 NTT Engineering 1,859 1,830 -29 NCC Engineering 357 350 -7 IT Solutions 590 600 +9 Social SystemRelated and Other 992 1,220 +227
  • NTT Engineering business: forecasting decline in sales, factoring in reduced capital expenditure at NTT Group
  • NCC Engineering business: forecasting decline in sales with anticipated decrease in TV reception improvement projects
  • IT Solutions business: Forecasting sales growth due to new consolidation of VACSLAB
  • Social System-Related and Others business: forecasting sales growth due to recovery in solar construction projects completion delays and full-year consolidation of Kando
  • 13 II-4. Trends in NTT Fixed-Line Related Business Expecting greater demand for optical fiber line construction due to increased investment in conversion to optical fiber
  • Construction repair orders will decrease due to the end of the NTT Group’s financial burden mitigation effects based on the past change in its depreciation method, and significant reduction is anticipated
  • Expecting an increase in FLET’S Hikari due to migration from ADSL and ISDN service
  • Striving to obtain orders for construction projects for the Tokyo Olympics 888 904 924 1,117 1,147 1,187 2,005 2,051 2,111 2,741 2,600 2,500 2,738 2,500 2,500 5,479 5,100 5,000 1,175 -19 1,200 -17 (Unit: ¥100 million) (Unit: ¥100 million) NTT East and NTT West capex No. of FLET’S Subscriptions (including optical fiber collaboration) FY March 2019 Target YoY Net Sales Orders Received (Unit: 10,000 lines) Note: Number of subscriptions is cumulative and includes Hikari Collaboration. Investment in fiber optics 1,560 Investment in fiber optics 1,530 Investment in fiber optics 1,610 NTT WEST NTT EAST FY March 2017 Results FY March 2018 Forecast FY March 2019 Target FY March 2017 Results FY March 2018 Forecast FY March 2019 Target NTT WEST NTT EAST Optical fiber collaboration 532 Optical fiber collaboration 341 Optical fiber collaboration 663 Optical fiber collaboration 458 Optical fiber collaboration 768 Optical fiber collaboration 553 NTT Engineering business–Access and Network Simple total for five companies* [Source: NTT Financial Results Briefing Materials, NTT Business Operation Plan for the Fiscal Year Ending March 31, 2019] *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.
  • 14 II-5. Trends in NTT Mobile Business High project volume of full-scale construction of 3.5GHz band base stations now proceeding
  • NTT DODOMO capital investment will decline slightly year on year
  • Reinforcing construction business structure as projects forecast to be focused on Tokyo metropolitan area
  • Orders for 3.4GHz band and 5G projects expected to be issued from second half of fiscal year ending March 31, 2019 LTE-A 209 307 320 5,762 5,472 5,380 5,971 5,779 5,700 3.5GHz 3.4GHz 700MHz 800MHz 1.5GHz 1.7GHz 2GHz CA LTE Ṵ Ṵ Ṵ Mar. 2018 Mar. 2019 Mar. 2020 Mar. 2021 Mar. 2022 Mar. 2023 (IFRS)* (IFRS) 565 -73 600 -32 (Unit: ¥100 million) (Unit: ¥100 million) NTT DOCOMO capex Trends in Main Process Volumes (forecasts by COMSYS) FY March 2019 Target YoY Net Sales Orders Received NTT Engineering business–Mobile Simple total for five companies [Source: Source: NTT DOCOMO Results Briefing Materials] *NTT DOCOMO applied IFRS in the first quarter of the fiscal year ending March 31, 2019 replacing the previous U.S. GAAP. FY March 2017 Results FY March 2018 Results FY March 2019 Target Communications business Other than above 5th generation (5G) Allocation of additional frequencies for 4G Allocation of frequencies for 5G Tokyo Olympics and Paralympics
  • 15 II-6. Trends in NCC Engineering Business Aiming to increase au and Softbank project participation
  • Despite expansion in areas of TV reception improvement projects, the number of projects that COMSYS engages in is expected to decline
  • au and Softbank base station construction project volume forecast to be at high level,continuing on from last year
  • Aim to secure orders for full-scale facility construction from 2019 in view of market entry by Rakuten 380 -12 350 -7 (Unit: ¥100 million) (Unit: ¥100 million) (Unit: ¥100 million) KDDI Capex (payment) Softbank Capex (Telecommunications business in Japan) FY March 2019 Target YoY Net Sales Orders Received NCC Engineering business consolidated [Source: KDDI Results Briefing Materials] [Source: Source: Softbank Group Results Briefing Materials] FY March 2017 Results FY March 2018 Forecast by COMSYS FY March 2019 Forecast by COMSYS FY March 2017 Results FY March 2018 Results FY March 2019 Forecast by COMSYS 1,943 2,000 2,000 3,250 3,300 3,300 3,205 3,703 3,700 5,300 5,300 5,194 Mobile (Includes UQ) Fixed line, etc.
  • 16 II-7. Trends in IT Solutions Business Strengthening alliances and focusing on sectors with expanding markets
  • Focusing on growth sectors such as cloud computing and teleworking by strengthening alliances
  • Seeking to create new businesses utilizing AI 640 +35 600 +9 (Unit: ¥100 million) (Unit: ¥ trillion) Forecast Trend in ICT-Related Market Size Categories to Focus on in Each Sector FY March 2019 Target YoY Net Sales Orders Received IT Solutions business consolidated [Source: WHITE PAPER Information and Communications in Japan, 2017] 1,070 1,129 1,180 1,224 1,000 1,300 2016 2020 2025 2030 20,000 40,000 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 SI NI Software Portion of increase in orders received due to business company system effects ¥3.0 billion Impact (market size) of IoT and AI on economic growth up to 2030 Trend in Japanese cloud market size [ Source: MM Research Institute, Ltd. ] (Unit: ¥100 million) Private cloud Public cloud
  • Olympics-related infrastructure construction
  • Disaster prevention and earthquake
  • countermeasures-related network construction
  • Monitoring and maintenance
  • Creation of new businesses related to AI
  • Cloud (Office365)
  • IoT-related (camera and device-related)
  • 17 II-8. Trends in Social System-Related and Other Business Working to expand solar construction business and orders received for other renewable energy projects
  • Aiming to obtain orders received for EPC projects utilizing COMSYS know-how for biomass power generation business
  • Aiming to expand orders received for projects dealing with countermeasures for aging plant electrical facilities, expressways, etc.
  • Actively engage in plans by local governments all over Japan to introduce undergrounding of electric wires through PFI 1,225 +44 1,220 +227 (Unit: ¥100 million) Focus Areas in Each Sector Trends in orders received for renewable energy business FY March 2019 Target YoY Net Sales Orders Received ISocial System-Related and Other business consolidated Portion of increase in orders received due to business company system effects ¥1.2 billion (Unit: ¥100 million) Civil Engineering Renewable Energy Electrical Facilities
  • Water treatment plant electricity
  • Expressway aging countermeasures
  • Private-sector data centers Expand business areas leveraging track record on Metropolitan Expressway Planning to receive orders for Ministry of Land, Infrastructure, Transport and Tourism PFI pilot projects
  • Water supply and sewerage
  • Civil engineering for agricultural water
  • Undergrounding of electrical wiring
  • Self-contained solar power (carport, floating, agricultural-type)
  • Hybrid system business (wind power and solar power)
  • Operation and maintenance (O&M)
  • Small-scale wind power
  • Biomass power Other Renewable Energy Solar construction FY March 2018 FY March 2019 Target 221 170 Promote orders received In the solar construction business, aim to secure more orders by cultivating new customers and providing diverse kinds of installation Biomass power generation market will expand sharply with an annual average 17.1% growth rate, increasing approximately 1.9 fold by 2020

III. Mediumand Long-Term Growth Strategy

  • 19 III-1. Progress of COMSYS VISION 2020 Aiming to achieve net sales and operating income targets one year early
  • Achieve ¥400.0 billion in net sales through growth strategy of IT solution business and Social System-Related and Other businesses
  • Achieved operating income target in fiscal year ended March 31, 2018 and plan further profit growth (8.0%) 320 4,000 COMSYS WAY a COMSYS VISION 2010 2,386 927 2,180 1,141 M&A 275 (8.3%) 276 (8.4%) 238 (7.4%) 250 (7.5%) 303 (8.0%) 3,313 3,286 3,206 3,341 3,800 4,000 300 (7.5%) 679 +679 +213 -206 Move Forward Mid-Term Targets Operating Income (Operating Margin) Net sales Growth Sectors Telecommunications Carriers (Unit: ¥100 million) Mid-Term Targets Launched FY March 2014 FY March 2015 FY March 2016 FY March 2017 FY March 2018 FY March 2019 Target FY March 2020 Change from FY ended March 31, 2014
  • 20 III-2. IT Business Company Growth Targets Focusing on strengthening alliances and market expansion
  • Focusing on high growth rate alliance market
  • Taking on development of new software, including AI and RPA
  • Venturing into new business sectors, such as IoT-related activities in the corporate solution business Mar. 2017Mar. 2018 FY Mar. 2019 Mar.2017 Mar. 2018 Mar. 2019 (Target) ¥55.3 billion ¥60.4 billion ¥64.0 billion 17Mar r. ___ 20
    8 8 FY Ma Mar. 2017 Mar. 2018 FY Mar. 2019 Mar. 2017 Mar. 2018 FY Mar. 2019 Profitability Growth Growth Rate in Orders Received by Target Corporate Solutions Sector (1) (Public sector, education, and nationwide rollout) Corporate Solutions Sector (2) (IoT and security) Software Sector (AI and RPA) Alliance Sector (Cloud computing, IT infrastructure, and data centers) Maintenance Business (see above) Up 7% Up 1% Up 13% Mar. 2017 Mar. 2018 FY Mar. 2019 Up 29% Up 10% Mar. 2017 Mar. 2018 FY Mar. 2019 Up 12% Up 16% Up 5% Up 15% Up 3% IT Solutions Business Trend in Orders Received
  • 21 III-3. Social System Business Company Growth Targets Focusing on maximizing and optimizing business by strengthening Group collaboration
  • Focusing on expanding existing business and plant electrical facilities projects in telecommunications sector
  • Expanding underground infrastructure construction sector, including undergrounding of electrical wiring (PFIbased) and water supply and sewerage
  • Expanding renewable energy sector centered on solar construction and wood biomass power generation Mar.2017 Mar. 2018 Mar. 2019 (Target) ¥82.8 billion ¥118.0 billion ¥122.5 billion Profitability Growth Growth Rate in Orders Received by Target FY Mar. 2019 FY Mar. 2019 FY Mar. 2019 Mar. 2018 Mar. 2018 Mar. 2018 Mar. 2017 Mar. 2017 Mar. 2017 Up 24.5% Up 0.3% Down 11% Up 39% Up 21% Up 57% Renewable Energy Sector (Solar power, biomass power, and wind power) Infrastructure and Other Sectors (Undergrounding of electrical wiring, water supply and sewerage, and agricultural engineering) Telecommunications sector (Expressways, plant electrical facilities, and reconstruction of government buildings) Social System-Related and Others Trend in Orders Received
  • 22 III-4. Business Expansion through M&A Expecting ¥60.0 billion contribution to net sales, with the consolidation of Kando Co., Ltd.
  • Inclusion of Kando in the consolidated results will make full-year contribution in fiscal year ending March 31, 2019 with ¥8.0 billion net sales growth
  • Promoting further M&As with aim of strengthening construction lineup and securing engineers, etc. 20 40 60 200 400 600 .DQGR Fiscal Year FY March 2015 FY March 2016 FY March 2017 FY March 2018 FY March 2019 (Target) M&A Results Net Sales Operating Income .DQGR *Performance figure is the simple sum of each company and excludes goodwill and share acquisition expenses, etc. *Kando was consolidated from the second quarter of the fiscal year ended March 31, 2018, so the first quarter’s figures were not included in the Group’s performance for the fiscal year ended March 31, 2018. Net Sales (¥100 millon) Operating Income (¥100 millon) Future Targets Ecosystem Japan CENTRAL BUILDING SERVICE Kawanakajima Kensetsu Hokkaido Denden Yuso Toa Kenzai Kogyo VACSLAB TOKYO HOSOH KOGYO — Kando System integration and software development Air conditioning construction and general construction industry
  • 23 III-5. Measures to Improve Productivity by Centralizing Operations Aiming for integrated COMSYS Group operations in access-related business
  • Reducing costs by consolidating offices
  • Strengthening prime contractor operations through integrated consolidated subsidiary operation by implementing resource shifting
  • Optimal positioning and systemization of consolidated operation centers for COMSYS Group Consolidated operation center for metallic line construction and post-construction process management Consolidated operation center for starting communication service Quality inspection center (photo inspection) Centralize area-free operations Image of Operations Centralization Step 3 (COMSYS Group) Step 2 (Nippon COMSYS) Step 1 (Nippon COMSYS) ᵖᵖӸίᵏᵕᵌᵓήὸỉʴՃЪถửܱྵ Category Service integration construction General construction User construction AC construction Construction management Design Completion processing Photo inspection Operational consolidation for Greater Tokyo area Construction office East Japan and West Japan Quality Inspection Center Consolidated operation center for starting communication service Consolidated operation center for metallic line construction and post-construction process management COMSYS TOSYS (Matoba) TSUKEN (Sapporo) Operation integrated by business type Consolidation of operations within Group Hirabayashi Hiroshima Nishihara Itano Fukuoka Shinetsu Utsunomiya Toda Hachioji Koshigaya Ueno Sagamihara Southern Tokyo Tokyo start of service operations consolidated center Consolidation of East Japan operations Consolidation of West Japan operations Activation of personnel exchange Standardization of workflow Toward optimization of COMSYS Group
  • 24 III-6. Profit Improvement Results Following Management Integration Steadily improving rate of profit through structural reform
  • Improving profits by sharing management resources within the Group
  • Promoting streamlining through centralization of operations
  • Going forward, continuing to strive for structural reform and working to improve margins 430 480 404 390 405 407 440 467 487 2.4% 3.3% 1.7% 1.7% 4.9% 5.5% 5.6% 5.6% 5.7% 0.0% 2.0% 4.0% 8.0% 10.0% 100 200 300 500 600 Mar. 2010 Mar. 2011 Mar. 2012 Mar. 2013 Mar. 2014 Mar. 2015 Mar. 2016 Mar. 2017 Mar. 2018 Successful process improvement examples as a result of management integration with TSUKEN TSUKEN Financial Performance Trends Business selection and concentration and elimination of duplicated operations Sharing of systems Other integration effects
  • Merger and reorganization of consolidated subsidiaries
  • Consolidation of NTT-AC business in Hokkaido area at TSUKEN Group
  • Consolidation of NTT-NW business in Hokkaido area at Nippon COMSYS Group
  • Centralization of common operations
  • Sharing of core systems
  • Sharing of construction-related IT systems
  • Sharing of HR and payroll systems
  • Groupware
  • Integration and consolidation of offices
  • Centralized purchasing
  • CMS Management integration (October) Net Sales Operating Margin Impact of earthquake (Unit: ¥100 million)
  • 25 III-7. Management Integration with Three Telecommunications Construction Companies in Western Japan Announcing management integration with three companies through share exchange
  • Expanding COMSYS Group net sales to ¥500.0 billion and operating profit to ¥35.0 billion
  • Business consolidation of subsidiaries scheduled for October 1, 2018
  • Aiming to strengthen market competitiveness and expand management base by restructuring high productivity construction system 78.0 80.0 28.0 29.1 13.4 13.1 3.67 3.20 0.89 0.79 0.23 0.18 (4.7%) (4.0%) (3.2%) (2.7%) (1.7%) (1.4%) 43.4 — 12.3 — 5.8 — NDS Co., Ltd.
  • (Securities code: 1956, First Section of Tokyo Stock Exchange and First Section of Nagoya Stock Exchange) SYSKEN Corporation (Securities code: 1933, Second Section of Tokyo Stock Exchange, Fukuoka Stock Exchange) Hokuriku Denwa Kouji Co., Ltd. (Securities code: 1989, Second Section of Tokyo Stock Exchange) Nagoya, Aichi Satoshi Tamamura ¥5,676 million May 1954 2,787 (Consolidated) 23 companies Kumamoto, Kumamoto Hidenori Fukumoto ¥801 million September 1954 888 (Consolidated) 5 companies Kanazawa, Ishikawa Yasuo Mori ¥611 million November 1949 669 (Consolidated) 4 companies Company Name Main Business Consolidated Subsidiaries Number of Employees Date of Establishment Paid in Capital Representative Location Operating Income (Operating Margin) Net Sales Net Assets
  • Multidiscipline engineering business
  • ICT solution business
  • Housing and real estate business
  • Information and communications
  • construction business
  • Infrastructure construction business
  • Other
  • Telecommunications construction business
  • Information systems business *Performance figures for the fiscal year ending March 31, 2019 are forecasted figures announced by each company on May 8, 2018. Consolidated Results (¥ billion) FY March 2018 Results FY March 2019 Target FY March 2018 Results FY March 2019 Target FY March 2018 Results FY March 2019 Target

IV. Shareholder Returns Policy

27 IV. Shareholder Returns Policy (Dividends and Acquisition of Treasury Stock) *The total number of issued shares changed from 145.97 million shares to 141.00 million shares with the cancellation of 4.97 million shares of treasury stock on November 30, 2015. Shares of treasury stock decreased by 7.92 million shares (5.6%) as a result of the share exchange with Kando Co., Ltd. on July 1, 2017. *Figures in parentheses are estimates assuming no impairment loss on goodwill. 163 167 154 144 203 210 29 35 39 44 58 68 80 75 80 80 80 50 [167] (Unit: ¥100 million) Net Income (Target) Total dividends Treasury stock acquisition March 2014 March 2015 March 2016 March 2017 March 2018 March 2019 (Planned) Dividends per Share (annual) Interim ¥10 ¥15 ¥15 ¥20 ¥25 ¥30 Year-end ¥15 Ordinary dividends: ¥10 + Commemorative dividends:¥5 ¥15 ¥20 ¥20 ¥25 ¥30 Consolidated Payout Ratio 18.4% 21.0% 25.6% 30.8% [ 26.6% ]* 28.0% 32.7% Total Return Ratio Dividends + treasury stock Net income 66.9% 66.2% 77.2% 85.6% [ 74.0% ]* 67.5% 56.6% Number of shares of treasury stock at the end of the period* (Ownership Ratio) 28.31 million shares (19.4%) 31.41 million shares (21.5%) 30.24 million shares (21.5%) 31.86 million shares (22.6%) 26.42 million shares (18.7%) — ROE 9.4% 9.0% 7.9% 7.3% [ 8.3% ]* 9.4% — Planning to achieve dividend payout ratio of 30% or higher through ¥10 increase in dividend

For further information, please contact: IR Department Telephone: +81-3-3448-7000 (direct) Facsimile: +81-3-3448-7001 E-Mail: chd-ir@comsys.co.jp 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.

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