The Seminar of 5G-related Companies

COMSYS Holdings Corporation COMPANY BRIEFING

December 19, 2019 Contents

1. Overview of COMSYS Group’s Business 3

2. Business Domains of COMSYS Group 4

3. Business Segment 5

4. Strengths of COMSYS Group 6

5. Market Trends for NTT Fixed-Line Related Business 7

6. Status of 5G Rollout at Telecommunications Carriers 8

7. Expanding Business Opportunities Driven by 5G 9

8. Business Positioning and Growth Strategy 10

9. COMSYS VISION NEXT STAGE 2023 11

10. Shareholder Returns Policy (Dividends and Acquisition of Treasury Stock) 12 1. Overview of COMSYS Group’s Business

The COMSYS Group has been engaged in the construction of communications infrastructure in Japan for over 60 years, particularly that of the NTT Group. With our extensive track record and extensive technical capabilities, we provide customers in every industry with the “best ICT and social infrastructure environment.”

Onsite System Discussion and Operation and Planning and Construction 123456proposals studies design applications maintenance

IT Solutions Business Communications Infrastructure Development Business Social System-Related business

We build ICT environments in all sectors of industry. We have supported Japan’s communications We build environmentally-friendly infrastructure. infrastructure for over 60 years. Software development Data center construction Construction of optical fiber cable networks Implementation of virtualized servers/storage Construction of electrical facilities for buildings, etc. Construction of communications infrastructure Construction of mobile environments, including wireless LANs Construction of water supply and sewerage facilities (civil engineering) facilities Construction of LAN/WAN networks Construction of communications infrastructure (civil engineering) Construction of mobile network base stations Operation center (maintenance) services Construction of gas supply line facilities Construction of switchboard (router) facilities Construction of monitoring system environments, etc. Construction of renewable energy facilities Construction of electrical facilities for communications, etc. 3 2. Business Domains of COMSYS Group

(As of March 31, 2019) Consolidated Results for FY March 2019 Net Sales: ¥481.7 billion Operating Profit: ¥35.2 billion Number of Employees: 16,700

Consolidation on October 1, 2018

SANWA COMSYS Hokuriku COMSYS COMSYS Nippon COMSYS Shared Services FY March 2019 Group Engineering TOSYS Group TSUKEN Group NDS Group SYSKEN Group Denwa Kouji JOHO System Consolidated Basis Group Group Group Corporation Net Sales ¥280.6 billion ¥56.6 billion ¥28.8 billion ¥51.5 billion ¥44.8 billion ¥16.7 billion ¥7.5 billion ¥12.0 billion ¥4.6 billion Operating Profit ¥21.3 billion ¥4.9 billion ¥1.4 billion ¥3.1 billion ¥2.0 billion ¥0.6 billion ¥0.4 billion ¥1.2 billion ¥0.4 billion Number of Employees 6,396 1,550 1,241 1,988 3,066 981 717 537 147 Head office Tokyo Tokyo Nagano Hokkaido Aichi Kumamoto Ishikawa Tokyo Tokyo

NTT Engineering

NCC Engineering

IT Solutions

Social System-Related and Other

* Net sales figures of each of the eight groups within the COMSYS Group are shown by offsetting (intra-group) transactions within each group but not offsetting transactions between groups. 4 * Net sales and operating profit for NDS Co., Ltd., SYSKEN Corporation, and Hokuriku Denwa Kouji Co., Ltd are only for the second half of the fiscal year because they were consolidated in October 2018. 3. Business Segment

Net Sales by Business Business Segment Main Customers Specific Lines of Business Segments (As of March 31, 2019) [ NTT Group ] • Nippon Telegraph and Construction of telecommunications facilities for telecommunications carriers • Telephone East Corporation NTT • Nippon Telegraph and Engineering 47.1% • Telephone West Corporation • NTT Communications • Corporation • NTT DOCOMO, Inc. Others

[ KDDI Group ] • Access projects • KDDI Corporation • UQ Communications Inc. NCC Others Engineering [ SoftBank Group ] • Mobile projects • SoftBank Corp. 8.9% • Wireless City Planning Inc. Others • Network projects

Provision of total solution service in IT field

• Private corporations • Government agencies IT Solutions • Local governments 15.6% Others • Server construction • Call center operations • Data center construction • Network Integration • System Integration • Software development Electrical, civil engineering and other construction projects related to urban infrastructure

Social 28.4% • Private corporations System-Related • Government agencies • Local governments and Other Others • Electrical facility projects • Construction projects • Communications and for solar and wind power civil engineering projects generation and others • Gas pipe and water supply and sewerage pipe construction projects 5 4. Strengths of COMSYS Group

Positioning to benefit from development of advanced telecommunications-based society

Full Development Conversion of ICT-Based 5G of Fixed Society Communications to IP

Providing one-stop total engineering for construction of social infrastructure

Water Gas Road Civil Communications Electrical Construction HVAC Sanitation Supply Piping Paving Engineering

Providing one-stop total solutions from consulting and design through to construction and maintenance

Consulting Design Construction Maintenance

Demonstrating highly sound financial position and stable cash flow

6 5. Market Trends for NTT Fixed-Line Related Business

Your Value Partner 2025 Medium-term management strategy of the NTT Group Promote B2B2X model / Realize and roll out 5G services / Promote personalization / Promote digital transformation / Promote PSTN migration / Promote city planning / Contribute to revitalization of regional societies and economies / Take disaster countermeasures

2019(FY) 2020 2021 2022 2023 2024 2025 Osaka World Expo Rugby World Cup Tokyo Olympic and 5G pre-commercial Paralympic Games Economic ripple effect service of approx. ¥2 trillion

Start migration of fixed-line Complete full Start IP service telephone services to IP connection End ADSL services IP migration End ISDN services

Promote conversion to fiber optics Promote migration of AC and NW to IP

In connection with 5G development, promote construction of facilities related to local 5G, DC, edge computing, IoT, and enhancements of AC/NW

Promote outsourcing of maintenance operations

Promote undergrounding of utility poles

7 6. Status of 5G Rollout at Telecommunications Carriers Docomo and Softbank announced advancement of 5G rollout plans 5G development plans of each telecommunications carrier 5G infrastructure rollout rate* 100% 97.0% 93.2% docomo docomo ahead of schedule 㻌 SB ahead of schedule au (KDDI) Softbank 㻌 64.0% Start servicing 10,000 stations** 11,000 stations** Rakuten Mobile in all prefectures** 56.1% 50% (advance plans by a year and 9 months) (advance plans by 2 years) (advance plans by 9 months)

0% Ministry of Internal Affairs 2019(FY) 2020 2021 2022 2023 and Communications Rugby World Cup Tokyo Olympic and Request for reductions in FY2020 corporate 5G pre-commercial service Paralympic Games income and fixed asset taxes regarding the 5G introduction 5G-related investments when four mobile carriers advance their development plan as plans of the Allocate Establish local frequency Provide 5G services in Achieve 5G infrastructure Encourage regional well as local 5G base stations** Ministry of Internal frequency bands use regulations all prefectures roll out rate at least 50% Affairs and revitalization through 5G Communications 5G investment up until end of fiscal 2024 docomo Pre-commercial Base station facilities: ¥660.0 billion service Service launch NW facilities: ¥135.0 billion

au Base station facilities: ¥372.8 billion Trial Service launch (KDDI) NW facilities: ¥93.9 billion

Base station facilities: ¥122.1 billion Softbank Pre-commercial service Service launch NW facilities: ¥84.0 billion

Rakuten Proactively use Base station facilities: ¥159.8 billion 5G virtualization Service launch NW facilities: ¥34.8 billion Mobile architecture with 4G

Local Entry of new operators into local 5G (NTT East and West, NTT Communications, cable TV, local governments, manufacturers, etc.) 5G-related Appearance of new services (IoT society: smart factory, remote medicine, remote operation, etc.)

[Source: prepared by COMSYS HD based on Results of Deliberations related to Authorization of Establishment Plans on Specified Base Stations for the Introduction of 5G Mobile Communications Systems, Ministry of Internal Affairs and Communications] **5G infrastructure roll out rate: with Japan divided into approximately 4,500 10km2 meshes, the percentage of meshes in which specified advanced 5G base stations have been established 8 **Source: August to December 2019 news articles of Nikkei, Inc. newspaper 7. Expanding Business Opportunities Driven by 5G

One-Stop Solutions for Various Industry Needs Induced by 5G Service Providers Telecom Carriers Partnering Enterprises, COMSYS-G Local Governments, etc. Construct 5G networks, Support service Creation, provision, and introduction create and provide services implementation of services utilizing 5G and local 5G

Disaster Tourism Transportation Prevention Construction Communications Transform all industries and Distribution Media Automobiles Remote Operation Fixed Wireless Security Industry, Public Infrastructure Agriculture, Healthcare BB Access Robots, Construction Augmented Reality (AR), Energy Fisheries Machinery, Airports Operations Virtual Reality(VR), Smart Cities IoT Autonomous Cars Mixed Reality (MR) - buildings - homes

Construct data Enhance Increase Public experiment Service proposal Monitor, maintain, centers and Enhance NW optical AC base stations and verification and development and preservation edge computing

NTT-AC and NW NTT-MB/NCC IT Solutions Social System-Related We will integrate the strengths of each segment to take advantage of new opportunities in expanding business areas COMSYS-G Business 9 8. Business Positioning and Growth Strategy

Business Positioning Growth Strategy Specific Measures oeBsnse o rwhCr uiessfrPoi Growth Platform Core Businesses for Profit Core Businesses for Growth

IT Solutions Business Maximize use of management Social System-Related Business resources through virtual New ICT investment to utilize IoT, AI companies, including and other technologies Expansion of net sales consolidated companies

Availability of various 5G-based services Actively implement M&As Vigorous investment in social infrastructure (National resilience, promotion of renewable energy, Tokyo Promote alliances Olympic and Paralympic Games, etc.)

NTT Engineering Business Drastically reform business NCC Engineering Business Ensure profit through improved productivity structure, including consolidated companies Trend of decline in capex at telecommunications carriers and cost reductions Utilization of IT at construction New medium-term investment for construction of Steady acquisition of sites and further enhancement 5G infrastructure and local 5G and IP conversion of telecommunications of the IT platform metallic lines carrier investment

• Workstyle innovation • Work flow standardization and optimization • Increased productivity • Utilization of latest IT technologies such as wearable • Increased competitiveness • terminals, AI and RPA • Develop and secure diverse • Increased personnel mobility among • human resources • group companies 10 9. COMSYS VISION NEXT STAGE 2023 Steady start toward achieving vision COMSYS VISION NEXT STAGE 2023 1H Performance Changes from previous fiscal year Net Sales At least ¥600.0 billion Net Sales +36.6% (+3.2%) Operating Profit At least ¥50.0 billion Operating Profit +18.1% (+1.4%) Total return ratio Maintain 70% target Increased target-progress rate Figures in parentheses show growth for existing At least consolidated subsidiaries ¥600.0 billion

Net Sales 5,400 At least (Unit: ¥100 million) 30% growth 4,817 825 Top-line expansion 750 Further expand existing segments At least 50% Enter new segments At least Progress 20% growth 45.0% 1,665 M&As Progress 1,367 Rate Rate 36.9% 2,430 1,778 432 Maintain profit by creating consolidation synergies Maintain IT 263 At most 746 2,910 Net sales Social 545 2,699 Promote streamlining through structural reform 50% System Share IT platform Carrier 969 1,250

Business year 2018 First Half 2018 Full Year1H Performance 2019 Target 2023 Target (FY March 2019) (FY March 2019) (FY March 2020) (FY March 2020) (FY March 2024) Operating Profit 109 352 129 380 At least 50.0 billion (Operating Margin) (6.2%) (7.3%) (5.3%) (7.0%) (At least 8%) Operating Profit Progress Rate 31.1% 34.1% 11 10. Shareholder Returns Policy (Dividends and Acquisition of Treasury Stock) Plan to acquire an additional ¥3.0 billion in treasury stock, taking total amount to ¥8.0 billion Net Income Total Dividends Stock Repurchase 280 Negative (Unit: ¥100 million) 51 Goodwill

[167]* 255 [228]** 80 Stock 80 ј repurchase 203 80 50 167 75 154 80 144 80 Total 72 95 dividends 35 39 44 58 0 March 2020 March 2015 March 2016 March 2017* March 2018 March 2019** (Planned)****

Dividends per Interim ¥15 ¥15 ¥20 ¥25 ¥30 ¥35 Share (annual) Year-end ¥15 ¥20 ¥20 ¥25 ¥30 ¥40

30.8% 26.1% Consolidated Payout Ratio 21.0% 25.6% 28.0% 37.4% [ 26.6% ]* [ 32.0% ]

Total Return Ratio 85.6% 54.5% Dividends + treasury stock 66.2% 77.2% 67.5% 68.8% [ 74.0% ]* [ 66.8% ] Net income Number of shares 31.41 30.24 31.86 26.42 12.29 14.38 of treasury stock million shares million shares million shares million shares million shares million shares at the end of the period (Ownership Ratio)*** (21.5%) (21.5%) (22.6%) (18.7%) (8.7%) (10.2%) 7.3% 10.6% ROE 9.0% 7.9% 9.4% 8.4% [ 8.3% ]* [ 8.7% ]* * Figures in [ ]* are estimates assuming no impairment loss on goodwill. ** Figures in [ ]** are estimates assuming no increase in net income due to negative goodwill. *** 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. **** Figures assuming treasury stocks are acquired for the share price as of September 30. 12 — 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.

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.

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/