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Investor Presentaiton

V-5. Centralization of Backyard Operations Cost reduction due to centralization of business sites Centralization of access-related business Centralize area-free operations Consolidated operation center for starting communication service Consolidated operation center for metallic line construction and post-construction process management Quality inspection center (photo inspection) Effect targets Approx. ¥400 million in cuts for current fiscal year on full-year base (consolidated Nippon COMSYS Group-basis) Further increase in amount of reductions through expansion of consolidated areas Image of operations centralization Consolidation of Operation Centers Details of operations (1) 24-hour, 365-day call center (2) Delivery center (116 functions) (3) Line resale (optical fiber collaboration) (4) Primary fault response (5) Remote monitoring (6) Remote operation (7) Secondary fault countermeasures S COMSYS.HD OPC expenses reduction target (Unit: ¥100 million) 70 Labor cost 25% reduction 60 Single site centralization 180 Office rent Communications expenses Utilities, etc. 125 250 185 Mar. 2015 Mar. 2020 Image of operations centralization Step 1 (Nippon COMSYS) Step 3 (COMSYS Group) Step 1 Step 2 Operational consolidation for Greater Tokyo area ■Consolidation of operations within Group Consolidate in Sapporo OPC Group-wide consolidation in Sapporo OPC Category Construction management Design Completion processing communication service Photo Service integration construction User construction AC construction Consolidated operation center for starting General construction Construction office Consolidated operation center for metallic line construction and post-construction process management inspection East Japan and West Japan Quality Inspection Center Step 2 (Nippon COMSYS) Consolidation of West and East Japan operations Consolidation of East Japan operations Shinetsu TSUKEN (Sapporo) Existing market NI/SI users (second) MY users TOSYS (Matoba) COMSYS Duplicated operations TSUKEN Marketing front office COMSUS TOSYS Suncom つうけん COMSYS Backyard Subcontracting CHD-OPS* integrated platform business *Consolidated sites to be considered in migration project Sapporo operation center Expanded market NTT-G Newly developed users (System integrator second) Consolidation of West Japan operations Utsunomiya Toda Koshigaya Hachioji Ueno Sagamihara Southern Tokyo Tokyo start of service operations consolidated center Fukuoka Hirabayashi Hiroshima Itano Nishihara (To open in October 2017) 29
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