September 2005 - CONTENTS -

I.. March 2005 Settlement & Full-term Outlook III.. 2nd Medium-Term Management Plan (March 2006 – March 2008)

1. Medium-term Management Policy 20 1. March 2005 Settlement (compared with the previous term) [12 months] 2. Major Targets 21 4 2. March 2005 Settlement (compared with projected (Ref.) Non-NTT Business Market Trends & Sales Plan 22 figures) [15 months] 3. Business Target Figures 23 3. March 2006 Full-term Outlook 5 (Ref.) Plan per Business Segment (1) Orders Received 24 4. Comsys HD’s Achievements & 3rd Term Plan 6 (2) Sales 25 (1) Measures to Integrate Operations 4. Responses to Target-Achievement Issues (2) Measures to Expand Business 7 (1) B FLET’S-related Works 26 8 (2) FOMA-related Works 27 II.. Comsys Group Overview (3) NCC-related Works 28 1. Comsys Group 10 (4) IT Solutions Business 29 2. Purpose of Business Integration 11 (i) Product Power 30 3. Managerial Vision 12 (Ref.) Brand Solution Portfolio 31 (Ref.) Three Companies’ Missions 13 (ii) Technological & Advisory Ability 32 4. Managerial Strategy (Business Orientation) 14 (5) Comsys-style “Kaizen” 33 (Ref.-1) Advance into High Value-Added Fields 15 (6) Measures to Improve Business; Investment to Expand Business 34 (Ref.-2) Missions of Main Businesses 16 5. Cash Strategy 35 5. Comsys Group’s Core Competencies 17 6. Dividend Policy 36 6. Responses to Challenges in the Managerial 18 7. M&A & Alliances (actual results) 37 Environment (Ref.) Number Obtaining Major Vendor Qualifications 38 IV. Appendix Corporate Profile 1. Profile 40 2. Brief Sketch of President Shimada’s Career 41 3. Company History 42 2 4. Shareholder Structure (Top 5 Shareholders) 43 I. March 2005 Settlement & Full-term Outlook 1. March 2005 Settlement (compared with the previous term)[12 months]

～ Sales increase (up 6.9%); profit increase (up 40.6%) ~ (Unit: ¥100 million)

March 2004 settlement March 2005 settlement Simple sum Simple sum [12 months] Change Percentage change

Orders received 2,702 2,918 +216 +8.0%

Sales 2,762 2,953 +191 +6.9%

Operating profit (ratio) 98 (3.6%) 138 （4.7%） +40 +40.6%

Current profit (ratio) 104 (3.8%) 160 （5.4%） +56 +53.2%

Net profit (ratio) 47 (1.7%) 88 （3.0%） +41 +85.3%

Note: The above values are the simple sum of full-term figures for three group companies (The figures for Sanwa-G and TOSYS-G cover 12 months, including the March 2004 term). The figures for the March 2005 term cover 12 months, with three months excluded for comparison purposes, as the settlement term of Nippon Comsys’s consolidated subsidiaries was amended.

** SSaalleess uupp ¥¥1199..11 bbnn oovveerr pprreevviioouuss tteerrmm **OOppeerraattiinngg pprrooffiitt uupp ¥¥44 bbnn oovveerr pprreevviioouuss tteerrmm (1) Business with NTT and NTT DoCoMo went well (+¥15.7 bn) (1) Synergy effects of business reorganization (+¥1.9 bn) (2) Entire non-NTT business emerged from doldrums (+¥3.4 bn) (2) Effect of managerial improvement (+¥2.9 bn) NCC business (particularly mobile engineering works) did well. (3) Profit growth due to sales increase (+¥1 bn) Enterprise business increased slightly. (4) Investment for business expansion (¥1.9 bn) * Special note: Overseas business was overhauled & an extraordinary loss of about ¥1.1 bn was posted. 4 2. March 2005 Settlement (compared with projected figures) [15 months]

~Sales & profit increase sharply~ (Unit: ¥100 million)

Projected figures [15 months] Actual results [15 months] (March 2005 term) (Note) (announced Jan. 27, 2005) Change Percentage change

Orders received 2,830 2,873 +43 +1.5%

Sales 2,840 2,936 +96 +3.4%

Operating profit (ratio) 125 (4.4%) 150 （5.1%） +25 +20.5%

Current profit (ratio) 145 (5.1%) 171 （5.8%） +26 +18.2%

Net profit (ratio) 70 (2.5%) 83 (2.8%） +13 +19.3%

Note: Amount contributed by Nippon Comsys’s consolidated subsidiaries for three months (January-March). [Orders received +¥2.9 bn] [Sales +¥4 bn] [Operating profit +¥1.1 bn] [Current profit +¥1 bn] [Net profit +¥600 mn]

－ Factors contributing to good results － Frontloading of ((11)) SShhaarrpp iinnccrreeaassee iinn ccoommpplleetteedd wwoorrkkss ssuucchh aass FFOOMMAA ttoowwaarrdd yyeeaarr eenndd.. completed works ((22)) SShhaarrpp iinnccrreeaassee iinn NNCCCC’’ss ccoommpplleetteedd wwoorrkkss ((mmoobbiillee aanndd IIPP ssyysstteemmss)) & ttoowwaarrdd yyeeaarr eenndd cost-cutting efforts ((33)) IInnccrreeaassee iinn ssaalleess aanndd ggrroossss pprrooffiitt dduuee ttoo aaddddiittiioonnaall wwoorrkkss 5 3. March 2006 Full-term Outlook

~Sales & profit increase maintained~ (Unit: ¥100 million）

March 2005 Actual results March 2006 Projected figures Change Percentage [12 months] (* Note) change

2,843 2,950 +107 +3.7% Orders received

2,896 2,930 +34 +1.2% Sales

Operating profit (ratio) 138 （4.8%） 145 （4.9%） +7 +4.0%

Current profit (ratio 160 （5.5%） 163 （5.6%） +3 +1.6%

Net profit (ratio) 77 （2.7%） 85 （2.9%） +8 +10.3%

ROE 6.2％ 6.8％ +0.6 points i M n d a i n c a a Per capita sales ¥42 mn ¥44 mn +2 +4.7% g t o e r r s i a l

Liabilities with interest ¥4.6 bn ¥3 bn -16 -34.8%

Note: As the settlement period of Nippon Comsys’s consolidated subsidiaries was amended, the above figures given as the results for the March 2005 term are actually the results for 12 months, with three months excluded for comparison purposes. 6 4. Comsys HG’s Achievements & 3rd-term Plan

(Unit: ¥100 mn) AAmmoouunntt aaddddeedd tthhrroouugghh mmaannaaggeerriiaall iimmpprroovveemmeenntt ((11)) MMeeaassuurreess ttoo IInntteeggrraattee OOppeerraattiioonnss RReessuullttss ffoorr 11sstt && 22nndd tteerrmmss 33rrdd tteerrmm ppllaann 1st and 2nd terms 3rd term plan 1st and 2nd terms 3rd term plan CCuummuullaattiivvee ttoottaal l ffoorr MMaarrcchh 22000055 tteerrmm CCuummuullaattiivvee ttoottaal l ffoorr MMaarrcchh 22000066 tteerrmm

((11)) EEffffeecctt ooff sseelleeccttiioonn && ccoonncceennttrraattiioonn ・NCC business integration (April 1) ・・IInntteeggrraattiioonn ooff NNTTTT bbuussiinneessss iinn mmeettrroo TTookkyyoo ・NCC business integration (April 1) 55 1100 ･ Promoting outsourcing of information business ・・CCoonnssooliliddaattiioonn && cclloossuurree ooff eennggiinneeeerriningg ccoommppaanniieess ･ Promoting outsourcing of information business ((AAlslstteerr;; SSuunnnneettccoomm))

((22)) EEffffeecctt ooff uunniiffiiccaattiioonn ooff ooppeerraattiioonnss hhaannddlleedd bbyy ggrroouupp ccoommppaanniieess

・ 18 37 Integration of internal systems ・・CCeennttrraalilizzeedd bbuuyyiinngg ・・““CCoommssyyss--ssttyyllee kkaaiizzeenn”” 18 37 ・ Enhancement of operations of Comsys Shared ・・IInntteeggrraatteedd bbuussiinneessss ooppeerraattiioonn iinn tthhee uussee ooff Service Co. rreeaal l eessttaattee && ootthheerr aarreeaass

((33)) EEffffeecctt ooff MM&&AA && aalllliiaannccee ffoorrmmaattiioonn

・Alliance with IT vendors such as Nissho Electronics ・・KKookkuussaai i DDeennsseettssuu ttoo bbee mmaaddee aa ssuubbssiiddiiaarryy 11 66 ・Tie-up with Unique Link for development of ((oonn OOcctt.. 11)) Comsys brand products ・・FFoorrmminingg aalliliaanncceess ttoo eexxppaanndd mmaaiinntteennaannccee bbuussiinneessss

((44)) CCoommppaannyy’’ss oowwnn mmeeaassuurreess ttoo iimmpprroovvee mmaannaaggeemmeenntt 6611 7700 ・・CCllaarriiffyyiinngg tthhee rroolleess ooff CCHHDD && ssuubbssiiddiiaarriieess;; aanndd rreeaassssiiggnniinngg ppeerrssoonnnneell ・・NNoorrmmaalliizziinngg oouuttssoouurrcciinngg eexxppeennsseess

Total amount contributed by managerial improvement (of this, the synergy effect amount) 8855 ((2233)) 112233 ((4477))

((FFoorr rreeff..)) SSaalleess iinnccrreeaassee tthhrroouugghh bbuussiinneessss eexxppaannssiioonn ・Development of Comsys brand products ・・EExxppaannssiioonn ooff CCoommssyyss bbrraanndd pprroodduucctt lilinneeuupp 20 70 (comsip) 20 70 ・・EEnntteerriinngg aa hhiigghheerr llaayyeerr bbyy imimpprroovviinngg hhuummaann sskkililsls ・IT-related orders increased 7 (Unit: ¥100 mn) IInnvveessttmmeenntt ttoo eexxppaanndd bbuussiinneessss ((22)) MMeeaassuurreess ttoo EExxppaanndd BBuussiinneessss AAccttuuaall rreessuullttss ffoorr 11sstt && 22nndd tteerrmmss TThhiirrdd tteerrmm ttaarrggeett 1st & 2nd terms 3rd term plan 1st & 2nd terms 3rd term plan CCuummuullaattiivvee ttoottaal l ffoorr MMaacchh 22000055 tteerrmm CCuummuullaattiivvee ttoottaal l ffoorr MMaarrcchh 22000066 tteerrmm

((11)) IInnvveessttmmeenntt ttoo eexxppaanndd IITT bbuussiinneessss ・Improving laboratory facilities & equipment 1199 3377 ・Investment related to IT human resources ・Other IT-related investment (such as consulting)

((22)) IInnvveessttmmeenntt ttoo eexxppaanndd nneeww bbuussiinneessss aarreeaass

・Expanding ＮＭＣ ・・RReellooccaattiinngg aanndd eexxppaannddiinngg ＮＮＭＭＣＣ ・・““CCoommssyyss--ssttyyllee kkaaiizzeenn”” 66 2211 ((iinnvveessttmmeenntt ttoo iinnttrroodduuccee IITT)) ・Development of Comsys brand products ・M&A, alliances (on small scale)

((33)) IInnvveessttmmeenntt ttoo pprroommoottee bbuussiinneessss iinntteeggrraattiioonn aanndd bbuussiinneessss rreeoorrggaanniizzaattiioonn ・ IT-related equipment investment ・IT-related equipment investment 11 12 (introducing IT to company operation) (introducing IT to company operation) 11 12 Introducing marketing and engineering work support system (introducing COMFORCE) Customizing COMFORCE Integrating internal systems Customizing internal systems

((44))IInnvveessttmmeenntt ffoorr tteecchhnnoollooggiiccaall rreesseeaarrcchh aanndd ddeevveellooppmmeenntt 22 33

Total investment to expand business 3388 7733 8 II. Comsys Group Overview 1． COMSYS Group (31 Companies)

COMSYS Holdings Corporation [As of 31 Mar. 2005] http://www.comsys-hd.co.jp/

SANWA COMSYS TOSYS Corporation Engineering Corporation Nippon COMSYS Corporation Address: Address: Address: 1108-5, Higashiyama Aza, Watauchi, 6-17, Aobadai 3-chome 17-1, Higashigotanda 2-chome Wakaho, Nagano 381-0193, Meguro-ku, Tokyo 153-0042, Japan -ku, Tokyo 141-8647, Establishment: 23 January 1960 Commencement of Business: Japan Paid-in Capital: ¥ 360.25 million 1 August1947 Establishment： 20 December 1951 Number of Employees： Establishment: 12 September 1947 Paid-in Capital: ¥ 31,140.51 million Consolidated 980 Paid-in Capital: ¥ 3,624.71 million Number of Employees： Non-consolidated 358 Number of Employees： Consolidated 4,566 URL: Consolidated 1,178 Non-consolidated 3,321 http://www.tosys.co.jp/index.html Non-consolidated 482 URL: http://www.comsys.co.jp/ URL: http://www.sancom-eng.co.jp

Consolidated Subsidiaries: Consolidated Subsidiaries: Consolidated Subsidiaries: 7 Companies 12 Companies 8 Companies 10 2. Purposes of Management Integration

((11)) W Whhyy m maannaaggeemmeennt ti ninteteggrraatitoionn?? ①①NNoot te efffifcicieiennt tf ofor rt hthee s saammee t ytyppee o of fc coommppaannieiess t oto c coommppeetete inin t hthee s saammee m maarkrkeet tw witihth t hthee s saammee m meeththoodd, ,w whhiliele t hthee mmaarkrkeet ti tistseelfl fi sis s shhrirninkkiningg ②②LLimimiti to of fb buussinineessss e exxppaannssioionn b byy o onnee c coommppaannyy’s’s r eressoouurcrceess

((22)) W Whhyy w witihth S SAANNWWAA a anndd T TOOSSYYSS?? ①①SSAANNWWAA’s’ssstrterennggththss i nin t eteleleccoommmmuunnicicaatitoionnss f afacciliiltiiteiess a anndd NNEECC r erelalatetedd b buussinineesssseess ②②TTOOSSYYSS’s’ssstrterennggthth a ass a a l oloccaal lc coommppaannyy i nin t hthee r ereggioionn

((33)) W Whhyy p puurree h hooldldiningg c coommppaannyy?? ① ①SSppeeeeddyy m maannaaggeemmeennt ti ninteteggraratitoionn ② ②SSppeeeeddyy b buussinineesss e exxppaannssioionn ( S(Suuccceesssioionn o of fb buussinineesss r irgighhtsts)) ③ ③SSppeeeeddyy s seelfl-fr-erefoformrm ( S(Seelfl-fm-maannaaggeemmeennt ti sis p poosssibiblele)) ④ ④SSppeeeeddyy s seelelecctitoionn a anndd c coonncceenntrtaratitoionn o of fm maannaaggeemmeennt tr eressoouurcrceess ⑤ ⑤SSppeeeeddyy r erefoformrm o of fc coorprpooraratete c cuultluturere (M(Mixixtuturere o of fd dififfefererennt tc coorprpooraratete c cuultlutureress))

11 3. Management Policy

① Reallocation of Management Resources

Management Vision ⑤ Demonstration of ②Group Unification Strong Leadership Ⅰ. Top Brand (Fusion) by Management Ⅱ. Continuous Growth in Sales and Profits

④Creation of Enthusiastic ③Strict Observance Corporate Culture of Compliance with Job Satisfaction

12 (Reference) Missions of 3 Companies

Division of Responsibilities among 3 Companies (Selectivity and Concentration) C o m

① Expanding solutions business m i t ② Responding to IP networks m e ③ Expanding NTT and DoCoMo business and n t

t

improving profit margins o

C O ① Expanding telecommunications facilities business M S Y

② Expanding private sector businesses such as S

New Common Carrier (NCC) / NEC business H o l ③ d

Strengthening of Financials i n g s

C

① Establishing locally-tailored business model for o r

solutions sector p o r ② Establishing rationalised business operation model a t i for network accesses o n ③ Further improvement of financials and profit margins

13 4. Management Strategy (Business Direction)

CCoommpprreehheennssivivee E Enngginineeeerriningg S Seerrvvicicee C Coommppaannyy ・ Establishment as a One- stop Solution Provider MMoobbiliele ・ Creation of COMSYS Brand

Network Consulting Network Design NNII AAcccceessss Network Integration Construction BBaassicic Software SSII System Integration Development EElelecctrtricicaal l FFaacciliiltiiteiess Testing NMC Maintenance EEccoo Operation・NMMaCintenance ・Monitoring BBuuilidldiningg Solution Business CCoonnssttrruuccttioionn B Buussinineessss Solution Business SSoocciaial lS Syysstetemm R Reelalatetedd B Buussinineessss 14 (Reference-1) Focus on Sectors with Higher Added Value

High Smiling Curve A d

d Sectors warranting e Sectors warranting

d greater attention/expansion greater attention/expansion

V a l u e Current COMSYS Group Status

Low Facilities Mgmt. Design Monitoring Consulting Construction Testing Development Maintenance/ Operation

Upstream process 15 (Reference-2) Missions in Core Business

Construction Business

・Maintain No.1 status in infrastructure constructions ・Expand NTT and DoCoMo’s Business Areas and Improve the market share in NCC business ・Impove profitability with stronger on- site operation

Solution Business Social System Related Business

・Aim to become the top brand as a ・Actively participate in new businesses one-stop solution provider effectively utilising information system technologies ・Develop COMSYS brand and business models ・Creation of ecology /welfare related (IP Telephone, Security Business business models etc.） ・Secure the profits with stable and log- ・Expand business with M&A / lasting businesses Alliances

16 5. Core Competence of COMSYS Group

(1) Experience and trust in the construction of network infrastructure

(2) Experience in the development of information system software

(3) Experience in the construction and the operation of highly sophisticated in-house information systems

(4) Offers of IT solutions by highly value-added and various engineer groups (One-stop solution provider of from consulting, design, development, construction, and to maintenance)

(5) Offers of maintenance services in all over Japan (Monitoring, operation, call centres, on-site maintenance)

17 6. Responses to Challenges in the Managerial Environment

CCoommpplliiaannccee

－－CCoommpplliiaannccee wwiitthh vvaarriioouuss llaawwss ((ssttrreennggtthheenniinngg pprreevveennttiivvee mmeeaassuurreess))－－ －－SSttrreennggtthheenniinngg iinntteerrnnaall bbuussiinneessss aauuddiittss aanndd lleeggaall cchheecckkss －－

TThhoorroouugghh ssaaffeettyy mmeeaassuurreess PPrroommoottiinngg ccoorrppoorraattee ssoocciiaall rreessppoonnssiibbiilliittyy ((CCSSRR)) －－EEnnhhaanncciinngg ssaaffeettyy ccoonnsscciioouussnneessss－－ －－GGlloobbaall eennvviirroonnmmeenntt--ccoonnsseerrvvaattiioonn aaccttiivviittiieess －－ －－TThhoorroouugghhggooiinngg bbaassiicc mmoottiioonnss－－ －－SSoocciiaall--ccoonnttrriibbuuttiioonn aaccttiivviittiieess －－

SSeettttiinngg uupp aann aaddvviissoorryy bbooaarrdd ttoo mmaakkee tthhee bbeesstt uussee ooff tthhee PPuurree HHoollddiinngg CCoommppaannyy SSyysstteemm

SStteeppppiinngg uupp MM&&AA aanndd ffoorrmmiinngg mmoorree aalllliiaanncceess Intensifying risk management ttoo eexxppaanndd tthhee ssccooppee oorr cchhaannggee tthhee ttyyppee ooff bbuussiinneessss Intensifying risk management －－Starting risk management projects －－ －－TTyyiinngg uupp wwiitthh IITT tteecchhnnoollooggyy vveennttuurreess －－ Starting risk management projects －－SSttaarrttiinngg aa TTOOBB rreeaaddiinneessss pprroojjeecctt －－ －－MMaakkiinngg uussee ooff ttrreeaassuurryy sshhaarreess aanndd ccaasshh －－

IImmpprroovviinngg pprroodduuccttiivviittyy tthhrroouugghh ccoosstt rreedduuccttiioonn

－－DDeevveellooppiinngg ““CCoommssyyss--ssttyyllee kkaaiizzeenn”” mmooddeelleedd oonn TTooyyoottaa’’ss ““kkaaiizzeenn”” ssyysstteemm －－ －－IInntteeggrraattiinngg ooppeerraattiioonnss bbuussiinneessss －－ －－AAllllooccaattiinngg mmaannaaggeerriiaall rreessoouurrcceess aapppprroopprriiaatteellyy －－ 18 III. 2nd Medium-term Management Plan (March 2006 – March 2008) 1. Medium-term Management Policy

((11)) T Too b bee t thhee N Noo. .1 1 c coommppaannyy i nin i ninffrraassttrruuccttuurree d deevveeloloppmmeenntt Developing “ Comsys-style kaizen” to strengthen on-site operations and further expand business scope

((22)) A Aimiminingg t too b bee a a S Syysstteemmss I nIntteeggrraattoorr i nin c coonnssttrruuccttioionn b buussinineessss

Using sophisticated NW technology to expand solutions business (i) Product power (ii) Technological ability (iii) Advisory ability

((33)) M Maaxximimiziziningg t hthee e effefecctt o of fb buussinineessss i ninteteggrraattioionn

Making the best use of the Pure Holding Company System (i) Concentration and selection (reorganization of business companies) (ii) M&A; alliances

20 2. Major Targets

11. . T Too a acchhieievvee s saaleless o off ¥ ¥332200 b bilililoionn i nin t thhee M Maarrcchh 2 2000088 t teerrmm

22. . T Too r raaisisee t thhee r raattioio o off n noonn--NNTTTT s saaleless t too 5 500%%

33. . T Too s seeccuurree a ann o oppeerraattiningg p prrooffitit r raattioio o off 5 5.5.5%% a anndd a a c cuurrrreenntt pprrooffitit r raattioio o off 6 6.0.0%%

21 （Reference) Non-NTT Business Market Trends & Sales Plan

MMaarrcchh 22000055 tteerrmm After 3 years MMaarrcchh 22000088 tteerrmm ((aaccttuuaall rreessuullttss)) ((pprroojjeecctteedd ffiigguurreess))

Sales (12 months) ＮＴＴ business ¥160 bn 【50％】 ＮＴＴ business ¥165,2 bn [57％] Sales weight ¥320 bn ¥289.6 [100%] bn ５０％ [100%] Non-NTT business Non-NTT Business ¥160 bn 【50％】 ¥124.4 bn[43％]

Of these, sales from non-NTT business

ＩＴ solutions ＩＴ solutions ¥27.3 bn Doubling of IT ¥64 bn solutions business Construction [22％] [40％] ¥160 bn ¥96 bn Construction ¥124.4 bn [100%] [60％] ¥97.1 bn [100%] [78%] （Note） Information Maintenance ＮＩ ２００ IP Phone １００ ２４０ １００ Note: Some of the IT solutions business also involved construction 22 business. 3. Business Target Figures

(Unit: ¥100 million)

CHD’s 2nd term ＣＨD’s 3rd term (Mar. 2006 term) ＣＨD’s 4th term (Mar. 2007 term) ＣＨD’s 5th term (Mar. 2008 term) results Projected figures 2nd medium-term projected 2nd medium-term projected ［12 months (Note)］ figures Differential figures Differential Differential ① ② (②–①) ③ (③-②) ④ (④-③) Orders received 2,843 2,950 + 107 3,100 + 150 3,220 + 120 Sales 2,896 2,930 + 34 3,050 + 120 3,200 + 150 Operating profit 138 145 + 7 155 + 10 175 + 20 Operating profit ratio 4.8% 4.9% + 0.1% 5.1% + 0.2% 5.5% + 0.4% Current profit 160 163 + 3 170 + 7 190 + 20 Current profit ratio 5.5% 5.6% + 0.1% 5.6% + 0.0% 6.0% + 0.4% Net profit 77 85 + 8 95 + 10 105 + 10 Net profit ratio 2.7% 2.9% + 0.2% 3.1% + 0.2% 3.3% + 0.2%

ROA 7.7% 7.7% + 0.0% 8.1% + 0.4% 9.0% + 0.9% ROE 6.2% 6.8% + 0.6% 7.8% + 1.0% 8.7% + 0.9% Per capita sales ¥4.2 mn ¥43 mn + ¥1 mn ¥44 mn + ¥1 mn ¥46 mn + ¥2 mn Liabilities with interest ¥4.6 bn ¥3 bn - ¥1.6 bn ¥500mn - ¥2.5 bn ¥200 mn - ¥300 mn

Note: The 2nd term results comprise 12-month figures from Comsys’s consolidated subsidiaries.

23 （Reference) Plan Per Business Segment (1) Orders Received

(Unit: ¥100 million)

CHD’s 2nd CHD’s 3rd term Projected CHD’s 4th term Projected CHD’s 5th term Projected term results (Mar. 2006 term) (Mar. 2007 term） (Mar. 2008 term) [12 months (Note)] Differential Differential Differential ① ② ③ ④ (②-①) (③-②) (④-③)

s G NTT information/ e e

r communications n v 1,664 1,612 - 52 1,630 + 18 1,600 - 30 i e

c engineering business r e a

l b

Telecommunications e u

n 677 794 + 117 830 + 36 750 - 80 s engineering business g i n i n e e s e s ＩＴ solutions business r 278 314 + 36 410 + 96 640 + 230 i n g

Total 2,619 2,720 + 101 2,870 + 150 2,990 + 120

Social system-related business 223 230 + 7 230 + 0 230 + 0

Grand total 2,843 2,950 + 107 3,100 + 150 3,220 + 120

Note: The 2nd term results comprise 12-month figures from Comsys’s consolidated subsidiaries.

24 (2) Sales

(Unit: ¥100 million)

CHD’s 2nd CHD’s 3rd term Projected CHD’s 4th term Projected CHD’s 5th term Projected term (Mar. 2006 term) (Mar. 2007 term） (Mar. 2008 term) [12 months (Note)] Differential Differential Differential ① ② ③ ④ (②-①) (③-②) (④-③)

s G NTT information/ e e

r communications n v 1,652 1,653 + 1 1,640 -13 1,600 - 40 i e

c engineering business r e a

l b Telecommunications e u n s engineering business 724 749 + 25 770 + 21 720 - 50 g i n i n e e s e s ＩＴ r solutions business

i 273 309 + 36 410 + 101 640 + 230 n g

Total 2,649 2,711 + 62 2,820 + 109 2,960 + 140

Social system-related business 246 219 - 27 230 + 11 240 + 10

Grand total 2,896 2,930 + 33 3,050 + 120 3,200 + 150

Note: The 2nd term results comprise 12-month figures from Comsys’s consolidated subsidiaries.

25 4. Responses to Target-achievement Issues (1) B FLET’S-related Works Orders received

(Unit: ¥100 million) Mar. 2005 Mar. 2008 “ Comsys-style kaizen” ＋ Simplified processes term results term plan O r d e r s 273 400 《Improving work efficiency》 《Improving work efficiency》 r e c e i v e d ・On-site “kaizen” ・Improving efficiency in work Compared ・Eliminating waste to halve related to NTT’s fiber-optic with March 1.00 1.46 workload & double productivity infrastructure development 2005 term ・Raising the ratio of work on condominiums to increase the number of access lines Improving opened per day productivity 【Number of fiber-optics engineers】 (Number of persons) Mar. 2005 Mar. 2008 Work volume allowing for Differ- term end term end Growth ential improved productivity results plan D e s i g n e r 530 560 30 1.06 times E x t e r n a l March 2005 March 2008 1,170 1,170 0 － w i r i n g term results term plan Securing 1.25 Compared times more Connection 890 1,060 170 1.25 times with March 1.00 1.25 workers I n - h o u s e 610 810 200 2005 term T o t a l 3,200 3,600 400 1.13 times

Employees who switched to a new job requiring different skills: 120 26 New graduates and mid-career employees: 250 (2) FOMA-related Works

Number of base stations Investment Orders received 4.0 Unit: 10,000 5,000 Unit: ¥100 mn Unit: ¥100 mn 3,800～ 600 3,800～ 4,000 4,000 4,000 3.0 500 2.4 80 Note: March 2008 400 3,000 91 term data not 2.0 1.7 1.7 1.6 300 shown in graph 2,000 due to number of 200 420 1.0 354 unconfirmed 1,000 elements. 100

0.0 0 0 Mar-05 Mar-06 Mar-07 Mar-05 Mar-06 Mar-07 Unit: ¥100 mn Mar-05 Mar-06 Mar-07

PDC FOMA CHD’s estimate Investment (FOMA base stations) CHD’s estimate FOMA IMCS CHD’s estimate Major measures

◆ Tapping into construction know-how and Establishing a work system system acquired through PDC enabling works on a large (nationwide worker mobility) number of base stations

◆ Improving cost performance (up 10%) Smaller-scale works through through “ kaizen” & base station base-station size reduction economization (down 30%) proposals

◆ Reviewing negotiation/consulting business Cost reduction & shortening of flow & shortening (halving) construction delivery time according to NTT periods DoCoMo’s wishes. 27 (3) NCC-related Works

Orders received: ¥21.1 bn Orders received: ¥25 bn (March 2005 term) (March 2008 term)

Existing major （ Mobile customers Strengthening work system & organization) Existing major Mobile (1) Work system customers ・Increasing staff (to 50) au Advancing into untapped au (2) Marketing system areas Vodafone ・Establishing directly- managed Vodafone WiLLCoM, etc WiLLCoM and unified nationwide marketing Operating nationwide after system accumulating experience in (3) Sanwa Comsys Branches metro Tokyo ・Establishing branches nationwide New entrants (particularly in Chugoku & eAccess Hokuriku areas) to work closely Softbank, etc. with local communities Drawing on full turn-key system know-how (4) IP installation works Fixed line ・Training IP engineers Fixed line (5) Cooperating Company System KDDI KDDI, Tokyo Electric Power Tokyo Electric Power ・Developing NCC cooperating PoweredCom, PoweredCom companies Japan Telecom, etc. Japan Telecom ・Making good use of cooperating Building IP-NW, FTTH, expanding use of dry copper companies under the CHD System lines nationwide & increasing market share 28 (4) IT Solutions Business

Aiming to become the No. 1 construction System lntegrator, as a total solutions provider Ensuring that IT solutions business, as the core of non-NTT business, accounts for 20% of total sales, three years from now

(Unit: ¥100 million)

Sales (actual) Sales (projected) Differential March 2005 term March 2008 term IT Solutions 273 640 +367 business NI（Note） 94 340 +246 (IP Phone- (1) (100) (+99) related NI) SI 118 200 +82 Maintenance 65 100 +35

Note: Excludes IP-NW of NTT, NTT DoCoMo & NCC businesses.

29 (i) Product Power

Brand solutions

(1(1) )Ｉ ＰＩＰpphhoonnee s soolulutitoionnss comsip (2) Security solutions comsip ISMS consulting (3) Operations management FFOOMMAA-L-LAANN solutions CTI Authentication solution CTI 100 IC cards Workflow management system Marketing support system 10 Action management board (web) (4) Monitoring sensor 30 solutions (5) ＮＷ Construction Image monitoring solutions Sensor monitoring WAN/LAN 30 IT disaster-prevention Wireless LAN (6) Mobile solutions system 20 Design/engineering/operations Gatten-kun package U-Office Content distribution 10 (7)Maintenance On-site Operations/monitoring 100 Maintenance works Figures indicate target for orders received per product (Unit: ¥100 million) 30 （Reference) Brand Solutions Portfolio

Government & public offices, Companies local governments Large Small Large-scale Smaller -scale

Direct marketing

Partners (NTT corps, Indirect etc.) marketing NI Sales partners (1) IP phones (1) IP phones (2) Security (2) Security Products (4) Monitoring sensor solutions (4) Monitoring sensor solutions (5) Network system construction (5) Network system construction

Direct marketing

Partners (NTT corps, Indirect etc.) SI marketing Sales partners (3) Operations management (3) Operations management Products (4) Monitoring sensor solutions (4) Monitoring sensor solutions (6) Mobiles ・Remote monitoring OP ・Helpdesk ・On-site maintenance

31 (ii) Technological & Advisory Ability

◎ Comsys’s strengths

Credentials from over 50 Record of software 1. Developing & marketing Comsys-brand years’ experience in development in products telecommunications information systems ・Establishing the Comsys brand genre engineering ・Developing & marketing brand-name products Nationwide maintenance service network 2. Offering services as a total solutions provider ・Offering services including infrastructure, NI, SI & maintenance ◎Engineering group ・Providing one-stop services including consulting, design, equipment procurement, Software Network Engineers, construction, operations & maintenance site managers Over 1,000 700 qualified as employees have vendors Over 1,000 have national national 3. NTT corporate marketing & alliance with qualifications, qualifications systems integrator vendor ・Adopting Comsys brand solutions qualifications, etc.

32 (5) Comsys-style “Kaizen”

CCuuttitningg w waasstete “K“Kaaizizeenn”” schedule March 2006 term March 2007 term March 2008 schedule plan plan term plan ・Pre-start wait-time Access system Nationwide ・ Inter-site transfer time Implementation Gradually expanded development in metro Tokyo 3TS to 25TS nationwide ・Overlapping operations ・ Retracing work processes Expanding network systems step by Comsys-style “skteapizen” (See note) Improvement TTaargrgeet te efffefecctt HHaalvlviningg w woorrkk & & Total sales cost doubling efficiency reduction for Cut by 3% Cut by 8% Cut by 10% doubling efficiency access system

Improvement Note: Introduction of TPS ( Product System) target

Comsys-style “ kaizen” (E(Exxaammppleless o of fa acccceessss b buussinineesssseess)) Comsys-style “ kaizen” ・ ・InIntrtorodduucicningg I TIT f ofor rr ereaal-lt-imtimee a avavailailabbiliitliyt yo of fin infoformrmaatitoionn a at tw woorkr ks isteites s& & d deeskssk s ・ ・MMaainintetennaanncece o of fin invevenntotoryr ya at ta appproroppriraiatete le levevelsls ・ ・PPrereppaarirningg a ann I TIT-b-baasesedd m maapp o of fw woorkr-ks-istietes st oto e ennaabblele c hchooiciece o of fo opptimtimuumm w woorkr kr orouutete toto r eredduucece t rtarannsfsefer rt imtimee. . ・ ・RReedduucicningg le leaadd t imtimee b by yk ekeeppiningg t hthee in inteteriroior ro of fw woorkr kv evehhicilceles sin in o ordrdeer r ・Improving work efficiency by promoting multi-skilling ・Improving work efficiency by promoting multi-skilling

33 (6) Measures to Improve Business; Investment to Expand Business

Effect of business improvement ¥9 bn

Own measures for improvement ¥2 bn

Synergy effect ¥7 bn

Increase in sales ¥3.5 bn Investment Alliance Current in IＴ-related Cost of effect profit business ¥1 bn business Cost of ¥19 bn ¥4.5 bn integration Comsys- ¥300 mn style Investment in Current profit technological “kaizen” ¥16 bn R&D ¥200 mn ¥500 mn Effect of fall Investment in order price in new ¥2 bn businesses ¥3 bn

March 2005 term results Projected March 2008 term

34 5．Cash Strategy

Normal operating funds ¥20 bn Other means of fund-raising Effective use ・Financial institutions/Commitment line ¥9 bn Funds for special use ¥15 bn of funds ・Capital market/Bond issue or other financing High priority Financial strategies in order of priority Low priority

Equipment investment strategy M&A strategy Shareholder strategy Other R&D investment strategy

・Improving fixed asset ･Expanding business P

u fields ・Acquiring own shares

r turnover ratio p

o ・ ･Creating synergy effects (treasury shares) to improve s Stepping up IT-related e

･ corporate value & business Seeking economies of

e ( ・Effective use of real T scale f f a e r c estate g

t ・Improving shareholder value e o t

f ・ ) Increasing competitiveness ・Swapping shares (cashless) i n v

e ・Securing human resources and technology ・Improving business s t m indicators

e ・Improving corporate value n ・Reducing funds for dividend t payment A m o o v c. ¥2 bn ~ ¥3 bn c. ¥5 bn ~ ¥6 bn c. ¥2 bn ~ ¥3 bn u e c. ¥7 bn ~ ¥8 bn n r

t y

Large-scale M&A; Paying dividends; Replacing obsolete

i Human resource e n a v

r alliances acquiring own shares, etc. buildings e development; s s t e research; acquiring real estate d product development, etc. 35 6. Dividend Policy

Dividend policy (1)Our basic policy is to maintain a stable dividend of ¥12 per share per annum, in the belief that a continuing company needs continuing shareholders. (The dividend at the end of the 2nd term was ¥15 per annum, including a special dividend of ¥3 resulting from business integration.) (2)We will maintain our policy of paying stable and continuous dividends, taking the business performance, payout ratio and other relevant matters into consideration.

(Our consolidated payout ratio) March 2005 term (2nd term) March 2004 term (1st term) Settlement term Per-share Consolidated Per-share Consolidated dividend payout ratio dividend payout ratio CHD ¥15 25.7% ¥12 26.1% (For comparison: figures from other companies in the same business) Company A ¥11 19.4% ¥12 40.7% Company B ¥15 20.6% ¥12 26.6% Company C ¥13 18.6% ¥12 18.1% Note: The payout ratio of Japanese listed companies averages 21%. 36 7． Alliance History

Date Alliances in the past

Business Alliance with Nippon Denwa Shisetsu Co., Ltd. 15/11/1999 Wide-ranged business alliance including operations/ construction systems etc. with a communications construction company based in the area of NTT West 21/4/2003 Joint Business Operation with CRC Solutions Corp. Jointly providing a series of services in relation to the introduction of IP telephone systems and the maintenance and operating business Business Alliance with Nissho Electronics Corp. and 1/10/2003 Nissho Techno System Corp. Realised one-stop services in IP Solutions Business from consulting to supports

1/2005 Development / Sales Alliance with ULI Expand our IP telephone business by the development and sales alliance with a vendor company of IP telephone systems

37 (Reference) Number of Engineers with Major Vendor Qualifications

(Unit: Person) Cisco Microsoft Oracle Linux Maker / Certification PLATINUM CCIE ※1 MCSE ※2 RHCE ※4 Period GOLD ※3

FY2004 (results ) 841 850 111 134 (2004.4～2005.3) 6 11 31 3 1,420 1,070 170 390 FY2007 (Plan) （2007.4～2008.3） 70 20 50 20

※1 CCIE “Cisco Certified Internetwork Expert” is the top qualification for the engineer recognition by Cisco, a maker for network appliances, such as routers. ※2 MCSE “Microsoft Certified Systems Engineer” is the top qualification for the engineer qualification system by Microsoft.

※3 PLATINUM GOLD The top qualification for the vendor quality recognition series by Oracle Japan. This qualification is also recognised as the global qualification by Oracle, “Oracle Certified Professional (OCP)” ※4 RHCE “Red Hat Certified Engineer“ is the qualification for Linux engineers authorised by Red Hat, a global distributor of Linux. 38 IV. Appendix Corporate Profile

39 1. Profile As of March 31, 2005

∥ Date of September 29, 2003 (Nippon Comsys Corporation establishment established in December 1951) ∥ Capital ¥10 billion

∥ Representative Hirofumi Shimada, Representative Director and President

∥ Number of 6,746 (as of March 31, 2005) employees ∥ Sales ¥293.6 bn (15 months) ¥295.3 bn (simple sum for 12 months) ¥111.7 bn (March 2005 midterm (Apr.-Sept. 2004) results)

∥ Current profit ¥17.1 bn (15 months) ¥16 bn (simple sum for 12 months) ¥4.2 bn (FY2004 midterm (Apr.-Sept. 2004) results)

∥ Businesses ○ NTT information/communications engineering business ○ Telecommunications engineering business ○ IT solutions business ○ Social system-related business

40 2. Profile of President

President Hirofumi Shimada

1967 Completed Master’s Course for Electrical Engineering, Graduate School of Technology, Keio University 1994 Joined Nippon Telegraph and Telephone Public Corporation (Former NTT) 1999 Assumed the position of Director, Head of Shin-Etsu Branch Office Supported Nagano Winter Olympic Game, (“High-tech” Olympic Game) on information communication technologies and lead it to a success 2002 Appointed as President of NI and C Co., Ltd. (a NTT-IBM joint venture SI company) Experienced the corporate culture of IB and studied thoroughly on e- business 2003 Appointed as Executive Vice President of Nippon COMSYS Corp. Appointed as President of Nippon COMSYS Corp. Concurrently assumed the position of President, COMSYS Holdings Corp. 41 3. Corporate History

Nippon COMSYS Corp. was established as a private construction company with the demand to promote the rebuilding of telecommunication facilities far left behind after the WWII. Since it was one of the largest public project to rebuild the lifeline telecommunication base of Japan, leaders in Japanese economic society and major corporates at the time gathered to found our company as The Nippon Telecommunications Construction Co., Ltd. in 1951.

≫ 12.1951 Founded as The Nippon Telecommunications Construction Co., Ltd. ≫ 8.1952 Certified as the first top comprehensive contractor by Nippon Telegraph and Telephone Public Corporation (Former NTT) ≫ 7.1962 Listed on the , Second Section ≫ 11.1972 Listed on the First Section of the Tokyo and Osaka Stock Exchanges ≫ 7.1990 Changed our name from The Nippon Telecommunications Construction Co., Ltd. to Nippon COMSYS Corporation ≫ 2.1991 Certified as comprehensive contractor for telecommunications construction projects by NTT ≫ 3.1994 Paid-in capital exceeded ¥10 billion ≫ 3.1997 Orders received and net sales exceeded ¥200 billion ≫ 8.1999 Paid-in capital exceeded ¥30 billion ≫ 12.2001 50th Anniversary of the Company’s founding ≫ 3.2002 Selected as one of the 225 companies included in the Nikkei Stock Price Index ≫ 9.2003 Establishment of COMSYS Holdings (Ticker Code: 1721)

42 4. Shareholder Structure (Top 5 Shareholders)

Distribution of shares by owners (as of March 31, 2005) 〇 Shareholders (as of March 31, 2005)

Number of 16.86% shares held （9,349 owners） Major shareholders Equity （％） (1,000 shares) 42.06％ Trust account of Japan 26.85% （81 owners） Trustee Services Bank 15,493 11.13 （211 owners） Trust account of Master Trust Bank of Japan 14,501 10.42 12.13% 2.08% （162 owners） （31 owners） Japan Trustee Services Bank (trust account for ’s Financial institutions Securities companies retirement benefits, entrusted by 6,834 4.91 Other corporations Foreign corporations Asset Trust & Banking Co.) Individuals, other Sumitomo Electric (for comparison) Distribution of shares by owners Industries, Ltd. 5,166 3.71 (as of Sept. 30, 2004) Co., Ltd. 5,166 3.71 14.95% （10,164 owners） Number of shareholders 9,834 ％ 18.43% 44.96 （89 owners） Ratio of non-Japanese （198 owners） ownership of shares 26.85% 20.04% （179 owners） 1.59% （29 owners）

Financial institutions Securities companies Other corporations Foreign corporations 43 Individuals, other