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