Annual Report 2013
Year Ended March 31, 2013

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Financial
SectionCorporate
Data1Profi leW hat is the IT Holdings Group?
Formed in April 2008, the IT Holdings (ITHD) Group is made up of the top information technology (IT) companies in Japan. At its core are five principal operating companies, which underpin excellent responses tothe needs of clients in a wide range of industry sectors. As of March 31, 2013, the Group comprised 54
companies—43 of which fell under the scope of consolidation and 10 of which are affiliated companies
accounted for under the equity method—and net sales reached ¥337 billion.

Net Sales by Business Segment (Sales to outside cutomers, excludes intersegment sales)

Other¥ 7,196 million
This segment provides incidental
business generated from theprovision of information systems

IT Infrastructure Services
Year ended
March 31, 2013

and other businesses.

Industrial IT Services¥110,076 million
This segment provides self-administeredTotalcomputer utility and system operation¥ 337,834

services through large IT facilities, suchas data centers.

million¥149,565 million

Financial IT Services

This segment supports the shift toward¥ 70,994 million

greater use of IT in business processes andin the execution of business activities, withThis segment supports the shift toward greater use ofbusiness know-how and IT expertise in

IT in business processes and in the execution ofareas other than finance, particularlybusiness activities, with business know-how and IT

industrial and public finance sectors.

expertise specific to the financial sector.

Information and Telecommunication Businesses
IT Infrastructure
Services

Financial IT
Services

Other Businesses

Industrial IT
Services

Others● TIS Inc.

● TIS Leasing Co., Ltd.

● INTEC Inc.

● IT Service Force Inc.

● AGREX Inc.
● QUALICA Inc.

● QUALICA Inc. ● Chuo System● AJS Inc.

● AJS Inc.

● NEOAXIS● NEOAXIS

Corporation

Other:

Other: Group companies

Domestic● 4 companies

Domestic ● 22 companies ■ 9 companies
Overseas ● 6 companies■ 1 company

Overseas● 2 companies● Consolidated subsidiaries ■ Equity-method affiliates

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Data2

Profile• We provide fully complete systems, from upstream to downstream
processes and all the way to transition, implementation training andmaintenance.
• We provide responses to any and all types of systems to improve
quality and productivity, and to facilitate such strategies as
implementing leading-edge technology, using offshore opportunities
to cut costs, applying template and package technologies, andensuring safety through high-security technology.

• As an independent systems integrator,
we provide total solutions, from design
through configuration, operation andmaintenance.

• We address the IT needs of clients inmany industries and provide one-stop
responses, utilizing Group strengths tounderpin first-rate consulting capabilities.

Systems
integration

Consulting

Systemdevelopment

ITHD GroupA corporate group with total IT capabilities tosupport the IT-related operations of clients from every angle.

Network
services• Our next-generation data centers,with national coverage, are bases for
top-class outsourcing and businessprocess outsourcing (BPO) in Japan.

Outsourcing• We connect with client environments through theInternet and dedicated lines to support all sorts of
networking networks, including mobile networks.
• Our security measures emphasize the latest
technologies.

The ITHD Group has 22 data centers in major
cities, including Tokyo, Nagoya, Osaka andToyama in Japan and in Tianjin, China, with a total
floor space of about 154,100m 2.
(See pages 15-16 for details.)

Future Targets
By 2015, the ITHD Group will have built a business portfolio geared for higher growth and higher profit byentrenching core businesses and establishing a presence in new businesses.

New, promising and overseas pursuits
Growth rate

Overseasbusinesses

Consulting
Businessplatform
services

Outsourcing
and network

New businesses

Other new businesses

Core businesses

Softwaredevelopment
Solution
services
Operating income ratio
2015

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Financial Highlights

3Years Ended March 31/ Consolidated

Net Sales

Net Income, Net Income per ShareNet Sales by Client Sector(Year ended March 31, 2013)(Billions of yen)

350

323.1

313.8

327.4

337.8

Public institutions
8.3%

Others3.3%

Credit card
14.5%

300
250

150

50
0

2010

2011

2012

Processing-based
manufacturing 11.4%

2013

Equity Ratio

Net Assets per Share
(Yen)

2,500
2,000

47.7

44.2

46.3

49.8

1,714.88
1,602.77 1,636.56 1,636.72

2

Assembly-based
manufacturing 11.5%

0

2010

2011

2012

0

2013

Dividends per Share, Payout Ratio
Payout Ratio

Dividends per Share

(%)

100

40

8

40

6

2
0

0

5.7
4.2

5.2

74.0
32.00

5.7

5.0

4.1

80

32.00
60

30

46.9

20

4.0

35.9

18.00

21.00
31.4

2011

2012

0

2013

40
20

10

1.5
2010

110.

30

24.33

50

10

2013

60

2.1

10

500

2012

4

90

66.86

68.19

50

4

2011

5.8

(Yen)

20

2010

89.25 5.9

(%)

1,000

0

Other finance
6.3%

120

(%)

30

1,500

7.6

6

ROA

ROE

150

8

ROE, ROANet Assets per Share, Equity Ratio

(Yen)

10

Insurance
7.1%

Net sales¥337 billion
100.0%

Distribution
8.1%

100

Net Income per Share

(Billions of yen)

Banking
7.8%Services
21.7%

200

Net Income

2010

2011

2012

2013

0

32.00

IT Services Industry Market Scale and Industry Position

28.9

ITHD belongs to the IT services industry. The Company is a leading, independent prime contractor, ranked
as the industry’s No. 2 system integrator on a consolidated sales basis.
Net Sales of Japan’s Leading IT Companies(Year ended March 31, 2013)

IT Services Industry Net Sales(Billions of yen)(Billions of yen)

21,49522,00020,63021,00020,00019,0001,400

18,8951,000

18,843

18,826800

18,000600

17,000400

16,000200

15,000

2006

1,301

1,200

2007

2008

2009

2010

Note: Japan Information Technology Services Industry Association classifies the software
sector, the information processing services sector and the Internet-based service
sector as the IT services industry.

0

363 337 322
278 269
NTT
Data

NRI

ITHD

CTC

SCSK

172

Unisys NSSOL ∙∙∙Note: The graph data indicates net sales of NTT Data Corporation, Nomura Research
FUJISOFT
Institute, Ltd., ITOCHU Techno-Solutions Corporation, SCSK Corporation, Nihon
133
Unisys, Ltd., NS Solutions Corporation, and ITHD.

Source: Data prepared by the Japan Information Technology Services Industry Association,
based on the Ministry of Economy, Trade and Industry’s “Survey of Selected Service
Industries”.

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Financial Highlights

4

Consolidated Financial Summary
IT Holdings Corporation and Its Consolidated Group Companies
For Years Ended March 31
2010

2011

2012

Millions of yen

2013

Millions of yen

Millions of
U.S. dollars

Net income to equity capital ratio (ROE) (%)¥313,856
254,82759,02943,032
15,996
15,7197,659
141,967
171,109
313,077
86,25571,746
158,001
155,075
313,077
91,646
31,400-25,726
6,139
46,987
5,674
15,676
11,978
912
1,389
6,863
89.25
–
32.00
35.9%
1,602.77
29.3%
44.2%
5.7%

¥323,173
261,145
62,02749,20912,818
12,625
5,985
128,455
172,620
301,076
73,09076,875
149,965
151,110301,076
77,454
27,236-18,957-18,755
36,492
8,279
18,32512,308
1,062
1,901
5,551
68.19
–
32.00
46.9%
1,636.56
25.7%
47.7%
4.2%

¥327,417
266,159
61,25845,636
15,621
15,393
2,135
142,442
167,560
310,003
83,06575,972
159,038
150,965
310,003
96,51523,658-15,158-4,23041,1198,500
14,096
12,745
962
1,882
3,672
24.33
–
18.00
74.0%
1,636.72
24.7%
46.3%
1.5%

¥337,834
276,935
60,89942,727
18,171
17,4405,868
138,219
164,083
302,302
91,06353,079144,143
158,159
302,30260,55021,515-14,391-19,883
28,433
7,124
12,287
12,920
1,002
1,670
1,914
66.86
66.83
21.00
31.4%
1,714.88
20.0%
49.8%
4.0%

$3,592
2,945
648
454
193
185
62
1,470
1,745
3,214
968
564
1,533
1,682
3,214
644
229
-153
-211
302
76
131
137
11
18
20
0.71
0.71
0.22
18.23
–
–
–

Recurring profit to total assets ratio (ROA) (%)

5.2%

4.1%

5.0%

5.7%

–

Number of employees at the end of the term
Number of new-graduate recruits
Number of regular recruits

20,476974
512

20,831928
370

20,347649
450

19,553
356
379

–
–
–

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Recurring profit
Net income
Current assets
Fixed assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Total liabilities and net assets
Total interest-bearing debt
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Cash and cash equivalents at the end of the termFree cash flow
Capital expenditures
Depreciation
Research and development expenses
Amortization of goodwill
Goodwill balance at the end of the term
Net income per share—basic (yen)Net income per share—diluted (yen)Dividends per share—diluted (yen)Payout ratio (%)
Net assets per share (yen)Interest-bearing debt ratio
Equity ratio (%)

Notes:

Profile2013

1. The U.S. dollar amounts represent the arithmetical results of translating yen into U.S. dollars at the rate of ¥94.05 to US$1.
2. Total interest-bearing debt indicates the total sum of borrowed money and corporate bonds.
3. Free cash flows indicate the total sum of cash flows from operating activities and cash flows from investing activities.

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To Our Stakeholders

At the annual general meeting of shareholders on June 25,
2013, a proposal to promote vice president Norio Maenishi tothe position of president was approved, and he assumed his
new position at the Board of Directors’ meeting that directly
followed the annual general meeting. Over the next few pages,
Mr. Maenishi details the medium-term business strategies being
implemented by the ITHD Group under his watch.
Norio Maenishi
President

From Defense to Offense—Starting Over on Road to Growth
medium-term management plan “Brave Steps 2014” has entered its second year. What are theQ1 Thekey points of the plan, and what was behind the formation of this plan?
Maenishi: ITHD launched the medium-term management plan “Brave Steps 2014,” which runs for three years,
from April 2012 through March 2015. This plan highlights three concepts: “Top-Line Emphasis,” “As One
Company” and “Enterprising and Bold.”
The ITHD Group was created through the April 2008 management integration of the old TIS Group and theold INTEC Group. Looking back, the first three years after integration were spent putting into practice amanagement style emphasizing the independence of each operating company—ITHD had 43 consolidated
subsidiaries as of March 31, 2013—and the next two years were spent primarily on measures to reform the cost
structure at each operating company.
Drastic restructuring, including the merger of SORUN, UFIT and TIS, the introduction of special careerchange support programs and the relocation and centralization of nine principal subsidiaries to the current head
office building, as of February 2012, have significantly reduced fixed costs.
Now, having made tangible progress on cost structure reform, it is time for the ITHD Group to forge ahead
along the road to growth again. Therefore, we have set the three years of the medium-term management plan
“Brave Steps 2014” as the time frame for the ITHD Group to secure top-brand status in the industry andreestablish an assertive, forward-looking platform for growth.

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To Our Stakeholders“Overall Optimization” and “Creation and Interconnection of Growth Engines”

Q2 What are the underlying themes of Brave Steps 2014?
Maenishi: There are two: overall optimization, and the creation and interconnection of distinctively recognizable
strengths—our growth engines—as seen from customer and market perspectives. Our operating companies
have each built strengths in specific industries, with solid reputations among clients in the banking and credit
card, assembly- and processing-based manufacturing, and distribution and services sectors. However, as I
mentioned earlier, the tendency to prioritize operating independence has taken precedence, and each operatingcompany had been left to address the needs of its own clients. However, many of these clients are well-known
corporations with a presence in Japan and overseas. If Group companies were to coordinate efforts among
themselves, the overall range of services available to prominent clientswould expand in scope and in depth.
It takes more than individual strengths to create a strong group.
Strong connections, from an overall perspective, are essential. “Brave
Steps 2014” calls for each company under the ITHD Group umbrella toreinforce respective strengths and for each employee at each company
to discover his or her own role in contributing to corporate growth. The
three years of the plan should be a time for Group companies to connect
with each other, rather than the holding company making unilateraldecisions, a time to facilitate approaches on working together andformulating strategy, that is, formation and positions, that utilize inherent
strengths to the best advantage.

Second Medium-term Management Plan ( April 2012 - March 2015 )Taking on Transformation “Brave Steps 2014”
Basic Concepts
The IT market has shown signs of shrinking over the past few years. Nonetheless, we have

Top-Line Emphasis

endeavored to expand business with sales in mind. We will prioritize a commitment to growth—that is, achieve higher revenues—by all possible means.
To realize a higher level of investment expertise and promote more robust business expansion,
we will cultivate a group atmosphere that evokes a sense of unity and build a corporate collective

As One Company

centered on ITHD and acting as one company.

Enterprising and Bold

Dealing with paradigm shifts, such as globalization and the evolution of services, is not possible
without an enterprising and bold resolve to take risks. We will prioritize a sense of courage inpursuing business activities.

Major Numerical Targets (to be achieved by March 2015)
Net sales:¥350 billion

Return on equity: 7.5%

Operating income:¥25 billion

Credit rating:

Sustain A rating

Corporate
GovernanceR&D

Operating income to sales: Above 7%

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ITHD Group Management Transitions and Current Status
Dec 2009
SORUN added

Apr 2008
ITHD established
Number of consolidated 40
subsidiaries

43

55

Apr 2011
Three-company merger
into revitalized TIS
53

48

Jun 2013

43 companies

Corporate restructuring(cost structure reform)

Management integration(emphasis on independence)

Resume journey on road to growth(Billions of yen)

25.0

23.7
15.9
12.8
338.3

Toward highest
results ever

323.1

313.8

15.6
327.4

18.1

337.8

20.5

345.0

350.0
Second Medium-termManagement Plan
Basic Concepts
Top-Line Emphasis
As One Company
Bold and EnterprisingFirst Medium-Term Business Plan

Fiscal 2009

Fiscal 2010

Fiscal 2011

Fiscal 2012

Second Medium-Term Business Plan

Fiscal 2013

Fiscal 2014

Fiscal 2015

Net Sales
Operating income

Group Communication Is Key to Everything

Q3 What specific measures will be taken to achieve the themes of overall optimization and creation andinterconnection of growth engines?

Maenishi: We have prioritized four measures:(1) Further reinforce the Group communication platform(2) Enhance the top line and promote cooperation across business segments(3) Improve back-office efficiency and introduce shared IT systems within the Group, and(4) Promote globalization and the evolution of services
1) Further reinforce Group communication platform
Under the new management structure, effective from June 2013, the presidents of principal subsidiaries holdconcurrent positions as holding company directors. Top management at these operating companies now guides
business forward at each company, not in isolation but with a shared perspective on the overall direction for theGroup.
Discussions will become more dynamic, involving directors responsible for planning, business promotion andadministrative divisions. For example, when an operating company is to establish a joint venture overseas,
expertise in such financial matters as transfer pricing taxation directed outside Japan is needed. Finance andaccounting divisions at companies within the Group will share this kind of know-how and thereby ensure that thebest practices are applied across the Group.

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At ITHD Group College, which began activities in fiscal 2013, middle management from Group companies
who have been tapped as candidates for the next generation of management gathers. The objective is tocultivate a sense of unity and a common spirit while providing a venue for discussing such topics as the future
direction of the Group’s global pursuits and to test out ideas that could be suggested to upper management.

Management Structure at ITHD (As of June 25, 2013)
Position

Name

RemarkChairman

Katsuki Kanaoka

President

Norio Maenishi

Director (Part-time)

Toru Kuwano

Chairman and President, TIS Inc. (concurrent)

Director (Part-time)

Shigeo Morita

Chairman, INTEC Inc. (concurrent)

Director (Part-time)

Koju Takizawa

President, INTEC Inc. (concurrent)

Director (Part-time)

Kazunori Kawasaki

President, AJS Inc. (concurrent)

Director (Part-time)

Akira Kato

President & CEO, QUALICA Inc. (concurrent)

Director (Outside)

Shingo Oda

Director (Outside)

Yoshinobu Ishigaki

Top management at
principal Group
companies concurrently
sit as ITHD directors.
Enhanced Group
governance and senseof teamwork among
Group companies.

2) Enhance top line and promote cooperation across business segments
The goal to enhance the top line (net sales) is more than just achieving the stated numerical target of ¥350 billion.
It also requires promoting cooperation among ITHD subsidiaries to foster a more assertive presence for theGroup as a whole going forward.
Group companies have each developed specific strengths, earning top marks from clients. The capabilities
have been honed through the provision of platform systems for financial institutions and public corporations,operating systems for companies in the distribution and services sectors, through production control systems for
manufacturers, through the operation of 22 data centers in Japan, and through business process outsourcing(BPO) services. But to keep the top line tracking higher, cooperation cannot stop at the project level; it mustcross over into business domains, and respective strengths must be reinforced and combined to ensure growth
into the future. Cooperative efforts have already begun, exemplified by know-how accumulated in the provisionof services to manufacturers being applied to businesses in other industries and BPO being applied to inquiryresponse operations evolving from wider use of cloud services.
Today, with IT systems so intricately tied to business operations and performance, companies demandsolution planning and proposals tailored to their needs, that is, shaped from a client perspective. We have toaccelerate the formation of connections among Group companies to realize these indispensible solutions.
Going forward, we may consider additional steps to reinforce the Group formation, including M&As andsubsidiary integration or restructuring, that will further enhance our overall ability to meet market needs from aclient perspective.

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3) Improve back-office efficiency and introduce shared IT systems within the Group
Overall efficiency within the Group continues to improve through the process of cost structure reform at each
operating company. In April 2009, we established IT Service Force Inc. to consolidate the back-office operationsof all Group companies. We are working to identify practices best suited to Group operations, even specialized
back-office departments such as accounting and personnel where cookie-cutter approaches may beproblematic, and will gradually centralize back-office operations at the shared service company while promoting
the establishment and introduction of shared IT systems within the Group.
4) Promote globalization and evolution of services
In recent years, the need for data management, particularly for Big Data, has increased among many of ourdomestic corporate clients. In addition, corporate IT utilization formats have become increasingly diverse,
highlighted by the use of efficient platform systems overseas and the reverse application of overseas systems inJapan. Against this backdrop, we are seeing a growing need for cloud data centers and an evolution in services
that facilitate the use of general-purpose shared systems.
Group companies have accumulated a wealth of technologies
and know-how, exemplified by AToMsQube, a production control
system developed by QUALICA, which is attracting the attentionof companies entering China and other overseas markets;
C-Finder, a Big Data analysis platform developed withparticipation from TIS that sifts through the access logs of morethan 100,000 people; and INTEC’s EINS WAVE, Japan’s firstextended virtual cloud service. These assets support efforts topromote solution-oriented services that encapsulate prevailingtrends. Group companies will work together to expand these
services to corporate clients at home and abroad.

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Toward a New Stage of Growth

Q4 What can you say about ITHD’s corporate value and the role that the Company’s must fulfill in society?
Maenishi: As I’ve explained, the three years of “Brave Steps 2014” will see the restructuring of core operatingcompanies and the creation of a dynamic platform that allows us to fully demonstrate the Group’s resources in
the market. Currently, we have about 20,000 employees, on a consolidated basis. But our strength is not as asingle company of 20,000 people but rather a collective of specialist companies staffed by these many people.
All of the buzzwords that characterize IT today—data centers, cloud, BPO, back-office centralization, data
management, evolution of services and globalization—represent strengths that we already possess throughcompanies under the ITHD umbrella. The question we have to address now is how to connect these strengths.
I have two mottos: One is “Genba hyappen,” which carries the meaning of “Repeated visits to the workplacefosters a deeper understanding of the work undertaken there,” and the other is “Kami wa saibu ni yadoritamau,”which is the equivalent of “God is in the details.” The holding company understands the situations at its operatingcompanies and will encourage cooperation, not in an heavy-handed way but with the pride of a leader whobrings 20,000 people together as a united team.
The operations of an IT organization such as ourselves, are B2B (business to business) transactions. But
individuals must be present to execute the associated services. Around the time I was hired, I had no idea that theInternet would become so ubiquitous, so much a part of the way the world works, lives and plays. IT is a choice ofindividuals and will remain a tool for making society a better place. To play an integral part in this process, we will
strive to contribute to society through our business activities in Japan and abroad, particularly in Asia.

Q5 Is there anything you’d like to say to shareholders?
Maenishi: We are on the edge of an new stage in our corporate development—a second beginning—and under
my watch as president, we will endeavor to enhance our capabilities on a groupwide basis and improve
corporate value, and thereby elevate our standing in the eyes of all stakeholders. The continued support andencouragement of shareholders and investors will, as always, be integral to our success.

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Second Medium-term Management Plan:
Basic Concepts and ITHD Group Management Direction
Top-Line Emphasis

As One Company

Bold and Enterprising

Fiscal 2013 Basic Concepts and ITHD Group Management Direction
Set fiscal year as time forfull-fledged V-shaped recovery andworked to expand net sales.

Cultivated a stronger sense of unity
to optimize Group capabilities.

• Established structure that facilitatesemphasis on core businesses and growthfields.
• Rebuilt client base and reinforce
approaches to better serve growth fields.
• Revamped marketing activities.

• Streamlined and consolidated corporate
functions.
• Created robust financial base.
• Reinforced brands and corporate image.
• Began activities at ITHD College.

Solid strides toward performancerecoverySteady introduction of measures foroverall optimization• Net sales growth: Up 3.2% year-on-year.
• Withdrew from unprofitable projects (threecompanies).
• Realigned companies, redirected resources
adapted to business models.

• Group selling, general and administrative
expenses down ¥2.9 billion.
• Organized brand committee, kicked off
meetings.
• Opened ITHD College.

Executed reforms on the business front.
Took steps to turn business activities
into marketable services and take thoseservices worldwide.
• Enhanced marketing capabilities.
• Accelerated globalization, with focus on
ASEAN region.
• Established investment committee.

Steps to promote evolution of services
and globalize operations• Globalization: Established new points,
expanded existing points• Services: Introduction of lead-off services
progressing favorably

Fiscal 2014 Basic Concepts and ITHD Group Management Direction
Further reinforce Group
communication platform andcultivate open and dynamic
atmosphereGet top line on a growth track toensure performance recovery• Cultivate new markets/clients and devise
new techniques• Improve approaches to management atclient companies• Utilize project synergies to create businessdomain / strategy synergies and makestrong points even stronger• Promote engineering aspect ofdevelopment business, primarily throughdevelopment center and productivity
reform office

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To OurStakeholders• Enrich programs at ITHD College:
Promote unity and best practices• Group brand: Introduce brand guidelines• Back-office efficiency: Expand
administrative scope of shared officecompany

Key Points

CSR

Corporate
Governance

Turn more business activities into
marketable services and establish
a wider global presence• Globalization: Consider adding morepoints to corporate map, launchbusinesses in China and ASEAN region
and turn into revenue sources• Evolution of services: Reinforce service
menu, enhance existing services,
especially cloud services

R&D

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12

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Status of Progress on New Group Formation
Focus attention on core businesses, promote integration by business model(Consolidated subsidiaries: 55 companies at the end of March 2010

43 companies at the end of March 2013 (decrease of 12 companies)

ITHD

TIS

INTEC
OartechTBC
Change in status(January 2013)

TSS
TSOL

AGMS

Business consolidation(April 2013)

Merged with
System Support(April 2012)

Integrate on-site services(development operations)at client offices(October 2012)

WITH
INTEC

IUK
Change in status(October 2012)

SKY INTEC
Merged with INTEC Amenity(January 2013)

Transfer outside Group(February 2013)

Radiology
information
systembusiness

AGREX

AJS

QUALICATransfer outside Group(April 2013)

NEOAXIS

Other corporate groups

Chuo System

Number of companies decreased by three during thisperiod following mergers and transfers (fiscal 2013)

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Key Points of Brave Steps 2014

The Group’s business strategies are described below.

Business Strategy 1

Strengthen existing businesses and spotlight expertise
ITHD Group Strengths
The Group has built a client base comprising customers in a diverse range of business sectors anddemonstrates particularly excellent capabilities for customers in the credit card and banking, assembly- andprocessing-based manufacturing and distribution and services sectors.
(Millions of yen)
Financial 2012
71,01245,084

Financial 2013

73,425

48,84640,363 38,824
26,702 26,230

38,46831,07422,931 23,836 23,416 21,337

30,107 28,225

26,267 27,398

10,456 11,241

Credit card

ProfileBanking

Insurance

Other Finance

Assembly-based Processing-based
manufacturing
manufacturing

Distribution

Services

Publicinstitutions

OthersCredit Card, Banking

Manufacturing(Assembly, processing)Service, Distribution

Fiscal 2013 net sales(Millions of yen)

75,076

77,292

100,823

Key clients• Mainly major credit cardcompanies seeking wide
variety of systems• Regional banks (morethan 40 clients)• major construction
machinery company• major chemical company

Trading companies, foodrelated companies,
information-related companies(major providers of SNS and
EDI)

Principal service providers

TIS, INTEC

TIS, Qualica, AJS

TIS, INTEC

Business themes

Enhanced settlementbusiness, Big Data, sharedinfrastructure use

Global development, businessdevelopment utilizing IT

Big Data, platform services

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Key Points of Brave Steps 2014
Business Strategies (Example: Industry Sector)
Manufacturing Industry

Assembly-based
manufacturing

Processing-based
manufacturing

Common Interests• Make production facilities and systems more efficient• Build flexible production systems extending worldwide, with focus on ASEAN region

Recent Group Developments
1. Creation of platform system for a major processing-based manufacturer.
2. Expanded overseas presence with offices in —Singapore (Qualica, TIS), Thailand (INTEC) and Vietnam (AGREX)ITHD Group Priorities Going Forward
1. Create (ongoing) platform system for major processing-based manufacturer.
2. Utilize data centers as global data centers and bases for cloud services.
3. Expand overseas network and make operations more efficient.
(1) Considering construction of data (business process outsourcing) center in ASEAN region.
(2) Reinforce existing bases through such pursuits as mergers and acquisitions with local
businesses in ASEAN region.
(3) Utilize management resources more efficiently by consolidating offices in China.

Addressing BPO Demand
Even as Japan’s IT market matures, business process outsourcing (BPO) remains an area of tremendous
growth potential, as clients increasingly look to outsource back-office operations in an effort to enhance theefficiency of their operations and reduce costs. ITHD Group company AGREX has built an extensive clientbase and considerable knowledge as an industry leader in this segment. As a key player, the company will
strengthen the connection between the BPO business and the system integration (SI) business and further
enhance the Group’s ability to promote strategic, high-value-added BPO services to an eager market.
* Note: On page 18, we highlight AGREX’s establishment of a joint venture to provide BPO services.

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Key Points of Brave Steps 2014

Topic

Group Strength—Data Center Business

The ITHD Group has 22 data centers in major cities, including Tokyo, Nagoya, Osaka and Toyama in Japanand in Tianjin, China, for total floor space of about 154,100m2. At home, the Group boasts the largest data
center network.
Major Features• High-quality system operation and the latest facilities
The ITHD Group draws on more than 40 years of proven results in operating mission critical systems
24 hours a day, 365 days a year and know-how accumulated in running the country’s largest data
center network to safeguard clients’ vital information assets through strict security measures andstate-of-the-art facilities with extremely sophisticated features that prevent service disruption in such
events as natural disasters and power outages.
• Business Continuity for Clients through Japan’s Largest Data Center Network
Today, system downtime can have an hugely adverse effect on corporate activities. Data centers havetherefore attracted attention as a practical component of disaster recovery plans to keep IT systems working
seamlessly should that one-in-a-million off-line situation arise. The ITHD Group has data centers in major
cities throughout Japan and a facility in China, so operations can be shifted from a primary data center to aremote data center as a backup measure.
For example, INTEC Manyo Square, which opened in July 2010, and Power & IT, which opened in June
2011, are newly built, next-generation data centers located in prefectures where earthquake- and typhoonrelated natural disasters occur less frequently than in other areas of Japan. As backup facilities, these data
centers can be vital components of a highly reliable disaster recovery structure.
• Highly Reliable Cloud Environment Platform
Our highly reliable, highly accessible data centers can be used as portals to cloud services we provide toclients. In addition, our data centers can also be used as worry-free portals to cloud environments, such as
client-only private cloud environments as well as hybrid cloud environments, which combine hybrid andprivate elements, and IT systems for smart devices.
The Group’s data business network is as follows.

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Key Points of Brave Steps 2014

The ITHD Group’s Data Center Business Network
Areas around Tokyo
Hokuriku AreaGDC Gotenyama (TIS)

Osaka Area
Manyo Square (INTEC)Tokyo 1st Center (TIS)
Osaka Center (TIS)Power & IT (INTEC)Tokyo 2nd Center (TIS)

Osaka Building (INTEC)Tokyo 3nd Center (TIS)

Shinsaibashi gDC (TIS)

Other Domestic Areas
Sapporo Building (INTEC)
Niigata Building (INTEC)
Sendai Building (INTEC)
Shikatsu Center (TIS)
and others

Nagoya Area

Yokohama Building (INTEC)

Nagoya Center (TIS)@Tokyo Chuo Center (INTEC)

Overseas

Tianjin IDC (TIS)(Tianjin, China)

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Key Points of Brave Steps 2014
Business Strategy 2

Market Creation through Differentiated Services
We will lay an optimum corporate platform—using marketing expertise, planning, development and businessas the building blocks—and then expand share through the expansion of services pegged to market needs,
new services planning and M&A activity. These efforts will turn the services business into a core ITHD
business.

Topic

Joint Development of C-Finder, Big Data Analysis Platform

TIS teamed up with Opt Inc. and Mathematical Systems Inc. on joint development of C-Finder, a Big Data
analysis platform that utilizes data from access logs covering more than 100,000 people and questionnaire
results from 10,000 respondents to visualize consumer behavior.
In corporate marketing activities, the ability to visualize diversifying consumer behavior is becoming
increasingly essential against a backdrop of expanding online content and wider use of social media.
C-Finder enables high-level analysis of what visitors to a website do once there, such as the actions theytake after perusing the site as well as movement to rival sites. Previously, company-collected data alone wasinsufficient to perform such insightful analysis. Consequently, the service is a valuable tool to support
corporate marketing efforts.
Note: All the data is held by Opt. The data is anonymous and has undergone statistical processing so it is impossible to identify the individuals fromwhom the information was gathered.

TIS is responsible for system
configuration and operation

Data Construction• Has questionnaire results from more than 10,000 respondents• Has data from access logs covering more than 100,000 people

Graphing

Data Extraction• Mathematical Systems’ Visual Mining Studio• Utilizes high-speed database engine

Data Tabulation• Mathematical Systems’ Visual Mining Studio

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Key Points of Brave Steps 2014

Topic

Development of Indoor Positioning System for Smartphones

INTEC developed an indoor positioning system for smartphones. The system applies a hybrid technique
combining distributed position-correcting information and the position-acquiring feature already built into
smartphones, including iPhone and Android, to extrapolate with high accuracy current position indoors andin underground spaces where signals from global positioning system satellites do not reach.
The technology’s potential will surely grow along with the rapid spread of smartphone use as a means toprovide people with information on stores at shopping malls and underground shopping areas as well as
guidance at events and cultural facilities.

IP Net work
Smartphone

Information server

3

Location capture2

Locator request

1

Acoustic signals

Hybrid indoor
positioning
PDR technology

Acceleration
sensor

Built-in mic

Geomagnetic
sensorAcoustic communication technology
Signaling devices (Pick up at distances of about 1m/multiple, concurrent signal possible)

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Corporate
GovernanceR&D• In an environment where
geomagnetic sensors (electronic
compass) are functioning properly,
position-correcting signal
technology may be usedconcurrently with the indoor
positioning system.
• Acoustic communication
technology can be used on its own.
• The positioning system may notwork in some places where certain
equipment, such as motors, havebeen installed or where voicefrequencies are already in use.

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Key Points of Brave Steps 2014
Business Strategy 3

Securing an Independent Position in Overseas Markets
Two major pillars support the Group’s global development: local support geared to the needs of existingcustomers as they establish a wider presence overseas, and cultivation of local markets using know-how
accumulated in Japan. In recent years, we have pushed ahead on the creation of a structure spotlighting
China as well as the ASEAN region.
China• Tianjin TIS Hi-Tech Information System Service Co., Ltd., formed a business alliance with ChinaCache
International Holdings Ltd., a leading provider of content delivery network (CDN) services in China(March 2012)• Tianjin TIS Hi-Tech Information System Service began offering “fei xiang yun,” upgraded version of“xiang yun” cloud service with enhanced features (July 2012)
Thailand• INTEC SYSTEMS BANGKOK CO., LTD. established (February 2012)• Thai office of Rent Corporation (comprehensive rental business) places order with INTEC SYSTEMSBANGKOK for complete revamp of accounting system (March 2013)
Singapore• TISI Singapore Pte. Ltd. established (January 2012)• QUALICA ASIA PACIFIC PTE. LTD. hired more staff and reinforced local support structure (March 2013)
Utilized business experience in China to expand presence into Southeast Asia
(1 ) Reinforced capacity to support clients in the manufacturing sector, such as KomatsuLtd., as they pursue business expansion into Southeast Asia.
(2 ) For manufacturing sector: AToMsQube(3 ) For distribution sector: TastyQube, SpecialtyQube
Target: Build scale of net sales to ¥1 billion by 2015.
Vietnam
Basic agreement between AGREX Inc. and member of local FPT Group to establish joint venture fordeveloping global BPO operations (March 2013)

Topic

AGREX Establishes Joint Venture for BPO Business

In March 2013, AGREX concluded a basic agreement with FPT Software Company Limited, a member of
the FPT Group—the biggest privately owned IT enterprise in Vietnam—to develop global BPO operations.
FPT Software is active on the world stage as a business specializing in offshore software development
and has also secured a position in the BPO market. Going forward, AGREX will strive to meet demand for
BPO services from Japanese companies expanding operations overseas by complementing the businessexpertise it has built in Japan with the extensive personnel network and track record of FPT Software.

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Corporate Social Responsibility

Basic Direction on CSR
The management philosophy that permeates the ITHD Group stresses the Group’s development into a
corporate citizen whose activities, hinging on the provision of various services utilizing IT, match its
status as a leading corporate group. This philosophy also underpins the Group’s efforts to raise
corporate value, supported in this effort by the high regard of all its stakeholders, including clients andshareholders as well as employees and their families. The Group’s stance on corporate social
responsibility is evident in its commitment to cultivate a vibrant corporate culture that encourages thecompanies and individuals under the Group umbrella to work toward higher goals and embrace newchallenges, to be honest and fair in business pursuits based on respect for the law, of course, as wellas high moral standards, and to fulfill social obligations. This is the Group’s basic direction on CSR.

ProfileEnsure sound, transparent
management practices

Acknowledge responsibilities as a leading corporate group in the IT services
industry and undertake sound corporate activities with integrity and clarity of
purpose. In addition, be sincere and fair in dealings with all stakeholders andproactively disclose pertinent corporate information.

Provide optimum services

Always provide the very best to clients and strive to raise customer satisfactionlevels through excellent quality and technology built on the composite strengthsof the Group.

Develop talent

Cultivate an environment in which employees always look ahead, striving toachieve higher goals and embracing new challenges. Provide opportunities togrow and realize personal goals, create a safe and productive work environment,
and give each person the freedom to reach his or her potential.

Respect the law

Maintain high corporate morals, obey the law and uphold parameters ofsocially acceptable conduct, and respect the spirit of such standards. Have
absolutely nothing to do with antisocial forces.

Maintain fair business practices

Ensure appropriate business transactions, based on fair and open
competition.

Protect the environment

Recognize that environmental problems warrant universal attention andpromote efforts to save resources and energy in the execution of corporate
activities. Also, through IT services, support clients’ efforts to enhance
operating efficiency and reduce energy consumption, thereby contributing tolower environmental impact.

Contribute to society

Actively participate in community events as a corporate citizen whose social
standing matches its leading industry status.

Be a part of theinternational community

Naturally, obey internationally recognized rules and local laws in the executionof cross-border projects, but also contribute to social and economic
development in the countries where the Group maintains a presence by
respecting local culture and customs.

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Corporate Social Responsibility

Activities of the ITHD Group
The Basic Direction on CSR guides the ITHD Group in all CSR activities, enabling the Group as a whole tomeet the expectations of all stakeholders.

For the global environment

With our shareholders

We actively integrate responses to environmental

Coinciding with quarterly disclosure, we holdconcerns in the course of business. At our mostinformation meetings for analysts and institutional

recently completed data centers, we haveinvestors. For individual investors, we issue two

implemented measures to utilize renewable energy

business reports a year and regularly post businessand resources, such as solar and geothermal energy,

results and information updates on our website.

rainwater harvesting for non-drinking applications andWith our employees

outside air for cooling.

To provide an environment in which employees canWith the community

demonstrate their full potential and work in safety andWe participate in various volunteer activities, including

comfort, each Group company reviews vacation andthe Ecocap Movement, which collects and sells

other entitlements and sets up programs to support

plastic bottle caps to recyclers and donates theemployees’ child-rearing efforts, such as access to

profits to buy vaccines for the world’s children. In

daycare centers. Group companies also take steps toaddition, we support efforts coordinated through theobtain “Kurumin” certification from the Ministry of

non-profit organization Good Earth Japan to remove

Health, Labour and Welfare, which recognizes

landmines in war-torn regions and helping shatteredcompanies for enabling employees to balance workcommunities rebuild.

and family responsibilities.

Topic

Smile Kids CampTIS organized the annual Smile Kids Camp in July 2013 at Lake Kawaguchi, in Yamanashi Prefecture, at thefoot of newly tapped World Heritage site Mount Fuji. This program offers seriously ill and disabled children,
along with their families and volunteers, a place where they transcend their differences—sickness anddisability—and enjoy the prospect of a happy and healthy tomorrow.
The 2013 event drew together a crowd of 188 people: 27 families—a total of 93 kids and family
members—and 95 volunteers (58 of whom were from TIS and other ITHD Group companies). After threedays of getting to know each other, there were a lot of sad faces and tears as families and volunteers said
goodbye at the closing ceremony. Smile Kids Camp was so much fun that many
participants said they would like to come again.
This program offers companies and their employees a valuable opportunity
to understand the real significance of
CSR and volunteer activities in ourworld. We will certainly continue thisprogram.

The spirits of Smile Kids Camp participants, even those in wheelchairs, truly soared with aride in the hot air balloon. Excited voices rang out from high above at the wonderful views
that spread out below.

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Corporate Social Responsibility

Topic

Participating in Environmentally Friendly “Future City” Projects

Seeing the development of a society with a sustainable economy as a national strategy, Japan is promoting
new technology and city-building initiatives that address environmental issues and the growing percentage
of elderly in the population. The government selected 11 cities and regions, including the city of Toyama—
where INTEC is headquartered—to be the sites of low-carbon cities of the future. In April 2012, the projectin Toyama kicked off. INTEC has been involved in the project from the start.
Using this project as a platform, INTEC is also working to turn smart city–related projects into
marketable businesses, which could become growth sectors in the future. In January 2013, the company
set up the Future City Promotion Dept. as the department responsible for smart city business, and will
accelerate efforts going forward.

In cooperation with the University of Toyama, INTEC is engaged
in various demonstration tests of information and communication
technology, such as augmented reality for light rail transit in thecity of Toyama.

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Corporate Social Responsibility

Topic

Thin Office Created from Comfort and Eco-Friendly Perspectives

Taking advantage of the head office relocation in 2012, QUALICA established a next-generation officeenvironment dubbed “Thin Office,” which utilizes the latest in information and communication technologies
to make work easier and more comfortable for employees.
Thin Office represents a revolution in work style based on four office design concepts: workplace,collaboration, ubiquitous office and eco-friendly. Building on the experience gained in setting up at the newhead office, QUALICA will strive for similar office design innovation at locations throughout Japan and plans
extend the scope of Thin Office to representative offices abroad and offshore partners.
• Workplace: Improves utility and utilization efficiency in the office, mainly through free address configuration—non-territorial
setup where employees are free to move to whichever desk they like—and use of a virtual desktop.
• Collaboration: Reduces costs and boosts communication efficiency through unified communication tools, such as
business chats and web conferencing.
• Ubiquitous office: Strengthens approach to security through introduction of virtual desktop environment and identification
solutions, and realizes access to in-house systems anytime and anywhere through BYOD (“bring your own device”).
• Eco-friendly: Large monitors and zero clients help lower electricity consumption and promote paperless office.

Large monitor, no-client permanent setup also incollaboration zone
Web conferencing anywhere outside company andpaperless meetings possible

Access to and use of personalenvironment (desktop and phone)from any seat in the office

Collaboration zone
Promote collaboration through unified
communication tools, connect bysoftphone and smartphone

Non-territorial seating
Secure remote access incorporating
multi-factor identification in virtualprivate network
All positions equipped with large
monitors and power-saving zeroclient devices

In-house network

Dataless office(data centralized at secure center)
VMware Infrast

ructureInternet

Virtual desktop

ProfileAccess from home or
any other location outside office

QUALICA Data Center

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Corporate Social Responsibility

Topic

Taking Part in Asahi no Mori Forest Conservation Project

AJS supports the Asahi no Mori forest conservation project in the northern part of Miyazaki Prefecture. This
project is a joint effort between Asahi Kasei and Miyazaki Prefecture through which man-made forests nolonger functioning economically are being replaced with broad-leaf trees native to the area to restore thenatural ecosystem and the forest’s groundwater recharge function..
Through its role in this project, AJS is actively helping to prevent global warming and preserve thenatural environment while supporting the creation of a better environment in Miyazaki Prefecture where thecompany has an office. In March 2010, the first time that AJS took part, a total of 400 people planted 3,000
seedlings, mainly zelkova, wild cherry and maple, over an area of one hectare. This has become a yearly
event for AJS since then, and the plan is to keeping planting trees and maintaining the reforested area withcompletion scheduled for 2020.

Topic

Support for the World’s Children

AGREX supports efforts to rebuild communities after landmines are removed in war-torn regions through thenon-profit organization Good Earth Japan, which undertakes agricultural training and infrastructure building,primarily in Cambodia. Also, since 2009 the company has been involved in the Ecocap Movement. As of
February 28, 2013, about 500,000 caps had been collected, with the profits from the sale of these caps
used to buy vaccines for more than 580 children.

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Corporate Governance

Basic Policy
To maintain the trust of all stakeholders, including clients and shareholders, and to be a corporate citizen
meeting the expectations of society, ITHD strives to reinforce corporate governance, not only by raising thetransparency and soundness of management practices but also by paying constant attention to actions
taken in the pursuit of business to ensure suitable levels of corporate ethics and legal compliance.

For more information go to
http://www.itholdings.co.jp/e/investors/policy/governance/

General Meeting of Shareholders
Appointment,
Dismissal

RiskManagement
CouncilGroup
ComplianceCouncil

Appointment

Reports

Advice Board of

Board ofDirectors Reports

Corporate
Auditors

Discussion

Appointment,
Administration

President

Direction

Compliance
OfficeAppointment,
Dismissal

AuditsReports

Units
involved
in internal
audits
Accounting
AuditorReports

Group Risk
Management
Committee

Executive
Committee

Group
Compliance
Committee
Group
Security
Committee

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Research and Development

The Group’s R&D activities hinge on TIS and INTEC, which undertake leading-edge pursuits inthe domains described below. Note that most of the Group’s R&D activities are not specific toindividual business segments but rather expeditions to discover techniques that can be appliedlaterally through operations groupwide.

(1) S oftware Development Technology
Seeking to boost the Group’s overall development productivity and enhance quality, TIS and INTEC
spearhead a steady and resourceful approach to software development technology by Group
companies.
INTEC worked to boost productivity at the test stage, which typically requires a considerable
number of man-hours for web application development. The company pushed ahead on R&D for thetest automation platform TaaS (Test as a Service) and on a test script generator. These tools wereintroduced for in-house use in the second half of fiscal 2013.
At TIS, development and validation continued for Xenlon, a Java-based development platformthat the company has been working on since fiscal 2011. TIS is promoting Xenlon as a tool for use
throughout the Group. Going forward, the company will strive to boost software development
productivity by emphasizing automation, particularly Xenlon, as well as code generation, real-timeengineering and visualization techniques.
Specifically, TIS has created some add-ons to the Xenlon platform, introducing functions as
required, such as a work flow function and a smartphone response for clients. The company alsoteamed up with Nexaweb Japan KK on an RIA (Rich Internet Application) response, coming up with
Xenlon for Nexaweb, which migrates existing business systems built with Visual Basic 6.0—long
overdue for an Internet response—into a Java-based RIA system through Nexaweb, a type of RIA
platform.
TIS is promoting deployment of ISHIGAKI Template, a software stack of open source software(OSS) programs for which the company independently validated the technologies and addressed any
upgrades needed. ISHIGAKI Template comes complete with a user’s manual, which reduces theburden associated with pre-validation, implementation and operation of OSS—a drawback caused by
the lack of a single source to support application—and facilitates utilization. Moreover, ISHIGAKI
Template comes standard with high-availability architecture and cluster formation settings to enable
OSS use in mission critical enterprise systems, even disaster recovery structures.
Through Amazon Web Services, TIS also offers a web application development platform service
called eXcale for Java. The infrastructure—a Platform as a Service for web developers—supports four
programming languages: Ruby, Java, PHP and Node.js. It easily executes automatic scalability andload balancing, matched to application load, and allows deployment through Git, an open-source
distributed version-control system designed to handle very large projects that are distributed overmultiple repositories, as well as through simple file uploading.

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Research and Development(2) Cloud Technology
Another priority is R&D on platform technologies to support cloud computing.
At INTEC, efforts have been directed toward platforms for multitenancy on servers anddatabases as solutions for transforming existing web applications into SaaS (Software as a Service).
Also, in the area of R&D on security models for cloud environments, the company is working to
improve secure online storage and add more features.
At TIS, the emphasis is on various combinations using public clouds such as Amazon Web
Services for T.E.O.S, a proprietary cloud platform. For example, the company utilized Amazon Web
Services for eXcale, mentioned above, and is preparing to make ISHIGAKI Template available throughAmazon Web Services as well. TIS is also working on the development of a mechanism to utilize andmonitor cloud-based environments.
These efforts exemplify a commitment to raise reliability and safety so that cloud technologies
with the necessary scalability for use when needed are available for mission critical operations.

(3) Mobile Technology
The popularity of smartphones and tablets is accelerating, and INTEC and TIS are actively engaged in
R&D one step ahead of demand and in associated validation and testing processes.
INTEC continued its participation in “Value-creating R&D Using Smart ICT for Toyama Light RailTransit,” its theme under the Strategic Information and Communications R&D Promotion Programme(SCOPE) sponsored by Japan’s Ministry of Internal Affairs and Communications. In cooperation with
the University of Toyama, INTEC is working on system improvements and add-on features for 1)
posting ads to on-board digital signage displays synched to a train’s position; 2) delivering
augmented reality games to passengers; and 3) presenting real-time information on service status oftrains.
INTEC made headway on proprietary technology that extrapolates the position of a person insidea building or underground where global positioning system (GPS) signals cannot reach. The company
also issued a press release and set up a booth at the 21st Japan Newspaper Production Show
(JANPS 2012) at the end of November 2012.
The rapid spread of smartphones and tablets has heightened demand for ways to operate
devices that do not require a keyboard or mouse. Noting that the latest devices have GPS capabilities
and built-in cameras and mics as standard features, TIS has been looking into the potential ofcommunication using natural user interface, or NUI, a structure for human-computer interaction
through such applications as voice input, motion capture, head-mounted displays and speechsynthesis.
TIS is applying the techniques acquired through these tests to pursue activities fused with cloudtechnology. This includes receipt of information using categories and favorite categories according topersonal context or recommendations through analysis of behavior history, simple 3D virtual object
generation, and application of speech synthesis.

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Research and Development(4) Big Data Processing, Ubiquitous Platform Technology
INTEC and TIS are both actively involved in development of technology related to Big Data, which ismaking notable headlines in the media, and also in development of technology for ubiquitous
platforms, that is, platforms that will take IT deeper into the way the world lives and works.
INTEC is pushing R&D on its own ubiquitous platform using parallel and distributed processing
and NoSQL technology. Through joint research with University of Tokyo, the company proposed aframework—serverless programming—that could store and process objects transparently on thecloud with no mind to servers, set up a joint industry-university project—Transparent Cloudcomputing Consortium—based on the idea, and embarked on R&D activities. INTEC also participatedin several smart city and smart community projects in Toyama, which has been designated anenvironmentally friendly “future city”.
TIS teamed up with Opt and Mathematical Systems and developed C-Finder, a Big Data analysis
platform. The company will promote interest in this platform by placing it on Amazon Web Services.
In the end, consolidated R&D expenses in fiscal 2013 reached ¥1,002 million.

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Financial Review

Note: Amounts in U.S. dollars are included solely for the convenience of non-Japanese readers.
A rate of ¥94.05 = US$1, the approximate rate of exchange prevailing on March 31, 2013, has been used in translation.

As of March 31, 2013, the ITHD Group comprised parent company IT Holdings Corporation (“ITHD” or “the Company”) and43 consolidated subsidiaries, including principal companies TIS Inc., INTEC Inc., AGREX INC., QUALICA INC. and AJS Inc.
The scope of consolidation was affected by several changes during fiscal 2013. On April 1, 2012, System Support Co.,
Ltd., merged into TIS System Service Inc. and SORUN ESTATE CORPORATION merged into TIS Total Service Co., Ltd.,effectively removing the two absorbed companies from the scope of consolidation. On January 1, 2013, SKY INTEC Inc.
merged into INTEC Amenity Inc., and the absorbed company was removed from the scope of consolidation. All shares held
in SORUN HOKURIKU CORPORATION were sold in April 2012, leading to the company’s exclusion from the scope of
consolidation in fiscal 2013. CAREER SERVICE CORPORATION, a consolidated company as fiscal 2012, was liquidated
and removed from the scope of consolidation in fiscal 2013.

Profit and Loss Analysis
Net Sales
Net sales reached ¥337,834 million ($3,592 million), up 3.2% from a year ago, underpinned by accelerating demand forindustrial IT services and gradual recovery in demand for financial IT services.
A breakdown of performance by business segment is presented below.
(Sales by segment include intersegment sales.)(1) IT Infrastructure Services
Consolidated sales increased 1.2% year-on-year, to ¥112,666 million ($1,197 million) and operating income declined
11.8%, to ¥7,101 million ($75 million). While net sales rose steadily as major customers started using the Group’s data
centers, operating income declined from the previous fiscal year, owing to the impact of up-front investments made in
response to increased demand for data center services as well as a rise in electricity charges.
(2) Financial IT Services
Segment sales rose 2.0% year-on-year, to ¥71,499 million ($760 million) and operating income jumped 32.8%, to ¥6,021
million ($64 million). The increases in sales and income were primarily driven by the resumption of IT-related investments by
the Group’s key customers in the credit card industry and the success of cost-cutting measures.
(3) Industrial IT Services
Segment sales increased 4.2% year-on-year, to ¥155,689 million ($1,655 million), while operating income soared 87.8%, to¥4,992 million ($53 million). A large-scale system development project for a major manufacturer fueled the sales increase,
while income improved by virtue of cost reductions.
(4 ) Other
Segment sales decreased slightly year-on-year, to ¥16,232 million ($172 million), and operating income retreated 5.4%, to¥2,153 million ($22 million).

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Sales and Income by Business Segment

Millions of yen
2013

2012

% change

Net sales¥337,834¥327,417+3.2

IT infrastructure services

110,076

109,234+0.8

Financial IT services

70,99469,659+1.9Industrial IT services

149,565

141,862+5.4

Other business

7,196

6,661

+8.0

Operating income

18,171

15,621+16.3%IT infrastructure services

7,101

8,049

-11.8

Financial IT services

6,021

4,534

+32.8

Industrial IT services

4,992

2,658

+87.8

Other business

2,153

2,277

-5.4

Intersegment elimination/adjustments-2,097-1,898-Note : Sales by segment in the above chart exclude intersegment sales.

Segment Business Content
IT Infrastructure Services

Provide self-administered computer utility or system operation services through large IT facilities, including data
centers.

Financial IT Services

Support clients in their efforts to make greater use of IT in their operations and in the execution of their businessactivities with IT expertise and business know-how specific to the finance industry.

Industrial IT Services

Support clients in their efforts to make greater use of IT in their operations and in the execution of their businessactivities with IT expertise and business know-how in areas other than finance, namely industrial and public sectors.

Other Business

Activities other than those described above.

Costs, Expenses and Earning
Operating income came to ¥18,171 million ($193 million), up 16.3% year-on-year and surpassing expectations. This
improvement is largely due to the higher net sales starting point and enhanced productivity as well as the appearance oftangible results from office relocation and centralization and benefits realized through measures paralleling merger activity
among subsidiaries. Recurring profit climbed 13.3%, to ¥17,440 million ($185 million). Net income skyrocketed 174.9%, to¥5,868 million ($62 million), reflecting higher operating income as well as lower extraordinary losses, such as the cost of
structural reforms.
Millions of yen

Cost of sales

2013

2012

% change¥276,935¥266,159

+4.0%

82.0%

Cost of sales ratio

60,899Gross profit

18.0%

Gross profit margin

42,727

Selling, general and administrative expenses

12.6%

Ratio of selling, general and administrative expenses to net sales

18,171

Operating income

5.4%

Operating income ratio

5,868

Net income

1.7%

Return on sales

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81.3%
61,25818.7%
45,636
13.9%
15,6214.8%
2,135+0.7 points-0.6%-0.7 points-6.4%+1.3 points+16.3%+0.6 points+174.90.7%+1.0 points

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Financial Review

Financial Position
AssetsTotal assets stood at ¥302,302 million ($3,214 million) as of March 31, 2013, down 2.5% from a year earlier. Of thisamount, current assets accounted for ¥138,219 million ($1,469 million), up 3.0% year-on-year, and total fixed assets
accounted for ¥164,083 million ($1,744 million), down 2.1%. Total liabilities dropped 9.4%, to ¥144,143 million ($1,532
million), and total net assets reached ¥158,159 million ($1,681 million), up 4.8% from the end of March 2012. Equity capital,
calculated by subtracting ¥7,602 million ($80 million) in minority interest in consolidated subsidiaries and ¥42 million ($446
thousand) in subscription rights from net assets, rose 4.8%, or ¥150,514 million ($1,600 million) over the previous fiscal
year, and the equity ratio rebounded 3.5 percentage points, to 49.8%.
Millions of yen
2013

2012

Total assets¥302,302¥310,003-2.5%

Total liabilities

144,143

159,038-9.4

Total net assets

158,159

150,965

+4.8

7,602

7,267

+4.6

42

38

+10.5

150,514

143,658+4.8

Minority interests
Stock acquisition rights
Equity capital
Key ratios:% change%

Equity ratio

1

49.8%

46.3%

+3.5 points

4.0

1.5

+2.5 points

Return on equity

2

Notes : 1. Equity ratio = ( Equity capital / Total assets ) x 100
2. Return on equity = Net income / Equity capital [ ( equity capital at the beginning of the term + equity capital at the end of term) / 2 ] x 100

Cash Flow Status
Cash and cash equivalents (“cash”) totaled ¥28,433 million ($302 million) as of March 31, 2013, down 30.9% from a year
earlier.
Net cash provided by operating activities grew 9.1%, to ¥21,515 million ($228 million). This change is mainly due to thefact that cash outflow, namely, a ¥4,088 million ($43 million) increase in notes and accounts receivable and ¥4,180 million($44 million) in income tax payments, were more than offset by income before taxes and minority interests of ¥11,185
million ($118 million) and ¥12,920 million ($137 million) in depreciation.
Net cash used in investing activities decreased 5.1%, to ¥14,391 million ($153 million), as cash inflow, mainly ¥2,263
million ($24 million) in proceeds from lease and guarantee deposits, was overshadowed by cash outflow, particularly ¥7,454
million ($79 million) in payments for the acquisition of property and equipment), ¥5,600 million ($59 million) for theacquisition of securities, and ¥4,149 million ($44 million) for the acquisition of intangible assets.
Net cash used in financing activities more than quadrupled, to ¥19,883 million ($211 million). This reflects cash outflow,such as ¥24,294 million (¥258 million) for repayment of long-term bank loans and a ¥4,053 million ($43 million) net
decrease in short-term borrowings, which negated cash inflow such as ¥12,500 million ($132 million) in proceeds fromlong-term bank loans.
Millions of yen

Profile

2013

2012

Cash and cash equivalents at end of year

¥28,433¥41,119-30.9%Net cash provided by operating activities

21,51523,658+9.1

Net cash used in investing activities(14,391)(15,158)-5.1

Net cash used in financing activities(19,883)(4,230)+370.0Financial
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Dividend Policy
ITHD has made the long-term, comprehensive return of profits to shareholders a management priority and seeks tomaintain stable dividends—targeting a consolidated payout ratio of 30%—while taking into account performance trends,
financial status, and the need to enrich retained earnings to support business growth.
In fiscal 2013, the Company booked consolidated extraordinary losses comprising approximately ¥2,600 million ($27
million) in expense following changes to the pension program at consolidated subsidiary TIS, Inc., approximately ¥1,500
million ($15 million) in real estate impairment loss, approximately ¥700 million ($7 million) in loss on disposal of fixed assets
and a total of approximately ¥800 million ($8 million) spent on structural reform-related activities. The Company also took
into account the need to secure sufficient internal reserves to fund continued growth. Management therefore decided on a
year-end dividend of ¥14 ($0.14) per share.
For fiscal 2014, management expects to distribute an annual dividend of ¥25 per share, including an interim dividend of¥8 per share.

Yen
2013

% change

2012

Per share data:

Net income per share¥ 66.86¥ 24.33+174.8%

Net assets per share

1,714.88

1,636.72+4.8%

Dividends per share

21.00

18.00

+16.7%

Payout ratio

31.4%

74.0%

-42.6 points

Business and Other Risks
Risk specific to each business segment may arise. In the software development business, for example, projects could turn
unprofitable, while system malfunctions could interrupt services in the outsourcing business. The Company applies various
measures to prevent the manifestation of such risks.
In the IT infrastructure business, data centers under the Group umbrella offer outsourcing and cloud computing services
at home and abroad—in Tokyo, Osaka, Kanagawa Prefecture, Tochigi Prefecture, Toyama Prefecture and Aichi Prefecture aswell as in Tianjin, China, and other locations—24 hours a day every day of the year. A variety of a installations, such as abase-isolation structure for enhanced earthquake tolerance, an on-site generator to ensure uninterrupted power supply, andcrime-prevention systems to thwart unauthorized access, have been incorporated into the buildings to control foreseeablerisk. Nevertheless, if an extraordinarily significant event, such as an extended power failure, a large-scale natural disaster,international conflict or an act of terrorism, or major criminal activity, were to occur and disrupt the smooth execution of data
center activities, the Group’s business results and financial position could be adversely affected.
All forward-looking statements in this document are based on information available to management as of May 10, 2013.

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Consolidated Balance Sheets
IT Holdings Corporation and Its Consolidated Group Companies
As of March 31, 2012 and 2013
2012

2013

Millions of yen

Millions of yen¥ 41,365¥ 28,633
68,249
9,322
5,401
3,035
7,091
200

AssetsCurrent assets
		 Cash and deposits		Raw materials and supplies

64,591
8,942
201
2,633
8,278
209

		
		

Deferred tax assets
Other current assets

8,027
8,305

8,523
7,846

		
		

Allowance for doubtful accounts
Total current assets(112)
142,442(85)
138,219

58,635
4,360

58,133
4,231

22,2663,455
6,074
94,792

21,135
3,615
6,475
93,592

3,471
14,047
17,5191,784
13,487
15,272

28,693
8,597
19,98632,633
6,823
17,577(2,028)55,248167,560¥310,003(1,816)55,218164,083¥302,302

		
		

Notes and accounts receivable
Lease receivables and lease investment assets

		Marketable securities
		 Merchandise and finished goods
		 Work in process

Fixed assets
		 Property and equipment
						

Buildings and structures, net
Machinery and equipment, net

			Land			Leased assets, net
			 Other property and equipment, net
			Total property and equipment

		Intangible assets
			Goodwill
			Other intangible assets
			Total intangible assets
		 Investments and other assets
			Investment securities
			Deferred tax assets
			Other assets						Allowance for doubtful accounts
Total investments and other assets
		 Total fixed assets
Total assets

Basis of Presenting the Consolidated Financial Statements
The accompanying consolidated financial statements have been compiled from the consolidated financial statements
prepared by the Company as required under the Financial Instruments and Exchange Act of Japan, and have been
prepared in accordance with accounting principles generally accepted in Japan.

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Consolidated Balance Sheets
IT Holdings Corporation and Its Consolidated Group Companies
As of March 31, 2012 and 2013
2012

2013

Millions of yen

Millions of yen

Liabilities
Current liabilities
		 Notes and accounts payable¥ 17,917¥ 17,692

		Short-term borrowings
		 Corporate bonds (redeemed within one year)

23,126100

32,881—

		 Income taxes payable
		 Accrued bonuses to directors and employees
		Other allowances

2,341
11,115322
28,141
83,065

3,112
11,074551
25,75091,06353,288
4,723
503
869
12,359107
4,120
75,972
159,038

27,668
5,501
492
732
12,762
108
5,813
53,079144,143

		Common stock
		 Additional paid-in capital

10,00186,787

10,00186,787

		Retained earnings
		 Less treasury stock, at cost

47,673(25)
144,436

51,596(27)
148,357

1,210(1,718)

4,271(1,967)

(270)
(778)

(147)
2,157

38
7,267
150,965¥310,003

42
7,602
158,159¥302,302

		

Other current liabilities

		 Total current liabilities
Non-current liabilities
		Long-term debt
		Lease obligations
		 Deferred tax liabilities
		 Deferred tax liabilities from revaluation of land
		 Accrued retirement benefits to employees
		 Accrued retirement benefits to directors
		 Other non-current liabilities
		 Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

		 Total shareholders’ equity
Accumulated other comprehensive income				Net unrealized gains on other securities
Revaluation of land				

Foreign currency translation adjustments
Total accumulated other comprehensive income

Stock acquisition rights
Minority interests
Total net assets
Total liabilities and net assets

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Consolidated Statements of Income
IT Holdings Corporation and Its Consolidated Group Companies
For Years Ended March 31, 2012 and 2013

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income

2012

2013

Millions of yen

Millions of yen¥327,417
266,159
61,25845,636
15,621¥337,834
276,935
60,89942,727
18,171

23
619

23
565

18
266
270
449
1,646

184
257
—
427
1,458

898
202
—
773
1,874
15,393

789
105
482
813
2,189
17,440Foreign exchange gains
Rental income from real estate
Reversal of allowance for doubtful accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of non-consolidated subsidiaries and affiliates
Provision of allowance for doubtful accounts
Other
Total non-operating expenses
Recurring profit
Extraordinary income
Gain on sale of fixed assets

62

44

1,142

95

103
1,307

36
175

249
766

662
1,523

318
381
7,852
—
1,010
10,579
6,121
4,068
(170)
3,897
2,224
89
¥ 2,135

71
—
843
2,609
720
6,431
11,185
5,224
(349)
4,874
6,310
441
¥ 5,868

Gain on sale of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on disposal of fixed assets
Impairment loss
Valuation loss on investment securities
Merger-related expenses
Structural reform-related expenses
Loss on partial termination of retirement benefit scheme
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes: current
Income taxes: deferred
Total income taxes
Income before minority interests
Minority interests in earnings (losses) of consolidated subsidiaries
Net income

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Consolidated Statements of Comprehensive Income
IT Holdings Corporation and Its Consolidated Group Companies
For Years Ended March 31, 2012 and 2013
2012

2013

Millions of yen

Millions of yen¥2,224¥6,310

(514)
123
33

3,108
(248)
169

(5)
(363)
1,860

4
3,033
9,343

1,772
¥ 87

8,804
¥ 539

Income before minority interests
Other comprehensive income
Net unrealized gains on other securities
Difference in revaluation of land
Foreign currency translation adjustments
Share of other comprehensive income of associates accounted forusing the equity method
Total other comprehensive income
Comprehensive income
Components:
		 Comprehensive income attributable to owners of the parent
		 Comprehensive income attributable to minority interests

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Consolidated Statements of Changes in Net Assets
IT Holdings Corporation and Its Consolidated Group Companies
For Years Ended March 31, 2012 and 2013
2012

2013

Millions of yen

Millions of yen¥ 10,001¥ 10,001

10,001

10,00186,78886,787

(0)
(0)

(0)
(0)

86,78786,78747,29847,673

			Dividends from surplus
			Net income(1,755)2,135(2,194)
5,868

			
			

(0)
—
(3)
375
47,673

—
248
—
3,923
51,596

Balance at end of previous fiscal year
Changes during the fiscal year

(24)

(25)

Acquisition of treasury stock
Disposal of treasury stock

(1)
0

(2)
0

			 Net changes during the fiscal year
		 Balance at end of fiscal year

(1)
(25)

(2)
(27)

Total shareholders’ equity
		 Balance at end of previous fiscal year

144,062

144,436(1,755)
2,135
(1)
0
(0)

(2,194)
5,868
(2)
0
—

—
(3)

248
—

374
¥144,436

3,920¥148,357

Shareholders’ equity
Common stock		 Balance at end of previous fiscal year
		 Balance at end of fiscal year
Additional paid-in capital
		 Balance at end of previous fiscal year
		 Changes during the fiscal year			 Disposal of treasury stock			

Total changes during the fiscal year

		 Balance at end of fiscal year
Retained earnings				Balance at end of previous fiscal year
Changes during the fiscal year

Change in scope of equity method
Reduction in revaluation reserve for land

			 Decrease from merger of consolidated and non-consolidated subsidiaries
			 Net changes during the fiscal year
		 Balance at end of fiscal year
Treasury stock
		
		

			
			

		 Changes during the fiscal year
			Dividends from surplus
			Net income
			 Acquisition of treasury stock						

Disposal of treasury stock
Change in scope of equity method

			
			

Reversal of land revaluation difference
Decrease from merger of consolidated and non-consolidated subsidiaries

			 Net changes during the fiscal year
		 Balance at end of fiscal year

Continued on the next page

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Consolidated Statements of Changes in Net Assets
Continued from the previous page

Accumulated other comprehensive income
Net unrealized gains on other securities
		 Balance at end of previous fiscal year
		 Changes during the fiscal year
			 Items other than changes in shareholders’ equity, net
			 Net changes during the fiscal year
		 Balance at end of fiscal year
Revaluation reserve for land
		 Balance at end of previous fiscal year
		 Items other than changes in shareholders’ equity, net
Total change during the fiscal year
Balance at end of the fiscal year
Foreign currency translation adjustments
		 Balance at end of previous fiscal year
		 Changes during the fiscal year
			 Items other than changes in shareholders’ equity, net
			 Net changes during the fiscal year
		 Balance at end of fiscal year
Accumulated other comprehensive income
		 Balance at end of previous fiscal year
		 Changes during the fiscal year
			 Items other than changes in shareholders’ equity, net
			 Net changes during the fiscal year
		 Balance at end of fiscal year
Stock acquisition rights
Balance at end of previous fiscal year
Changes during the fiscal year
		 Items other than changes in shareholders’ equity, net
		 Net changes during the fiscal year
Balance at end of fiscal year
Minority interests
Balance at end of previous fiscal year
Changes during the fiscal year
		 Items other than changes in shareholders’ equity, net
		 Net changes during the fiscal year
Balance at end of fiscal year
Total net assets
Balance at end of previous fiscal year
Changes during the fiscal year
		 Dividends from surplus
		Net income
		 Acquisition of treasury stock		 Disposal of treasury stock
		 Change in scope of equity method
		 Reversal of land revaluation difference		 Decrease from merger of consolidated and non-consolidated subsidiaries
		 Items other than changes in shareholders’ equity, net
		 Net changes during the fiscal year
Balance at end of fiscal year

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2012

2013

Millions of yen

Millions of yen

¥

¥

1,729

1,210

(519)
(519)
1,210

3,061
3,061
4,271

(1,841)
123
123(1,718)(1,718)(248)(248)(1,967)

(303)

(270)

33
33
(270)

123
123
(147)

(415)

(778)

(362)
(362)
(778)

2,935
2,935
2,157

29

38

9
9
38

3
3
42

7,434

7,267

(166)
(166)
7,267

334
334
7,602

151,110

150,965(1,755)
2,135
(1)
0
(0)
—
(3)
(519)
(145)
¥150,965(2,194)
5,868
(2)
0
—
248
—
3,273
7,194
¥158,159

R&D

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Financial Section

Consolidated Statements of Cash FlowsIT Holdings Corporation and Its Consolidated Group Companies
For Years Ended March 31, 2012 and 2013
2012

2013

Millions of yen

Millions of yen¥ 6,121
12,745¥11,185
12,920

766
249

1,523
662

318
1,882

71
1,670

(8)
(391)
547
(642)
898
(5,235)(2,214)
2,710
2,388
8,448
28,585656(897)(4,685)

(11)
(238)
413
(589)
789
(4,088)
770
(71)
(401)
1,331
25,936578(819)(4,180)23,65821,515Acquisitions of property and equipment
Acquisitions of intangible assets(400)(9,519)(4,927)(5,600)(7,454)(4,149)Proceeds from sale and redemption of investment securities
Payment of lease and guarantee deposits

2,314(2,009)

990
(308)

538

2,263

(1,153)(15,158)(134)(14,391)

4,403
16,637(14,662)(7,500)(4,053)
12,500(24,294)(100)(1,755)(2,194)(155)(1,197)(4,230)(199)(1,540)(19,883)

31
4,301
36,492
325—¥41,119

109(12,649)
41,119—(36)¥28,433

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Impairment loss
Loss on disposal of fixed assets
Valuation (gain) loss on investment securities
Amortization of goodwill
Increase (decrease) in accrued bonuses to directors and employees
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in accrued retirement benefits to employees
Interest and dividend income
Interest expenses(Increase) decrease in notes and accounts receivable(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable
Structural reform-related expenses
Other, net
		Subtotal
Interest and dividend income received
Interest expenses paid
Income taxes paid
		 Net cash provided by operating activities
Cash flows from investing activities
Purchase of marketable securities

Collection of lease and guarantee deposits
Other, net
		 Net cash used in investing activities
Cash flows from financing activities
Increase (decrease) in short-term borrowings, net
Proceeds from long-term debt
Repayments of long-term debt
Redemption of bonds
Dividends paid
Dividends paid to minority shareholders
Other, net
		 Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents resulting from merger
Decrease in cash and cash equivalents due to corporate division
Cash and cash equivalents at end of year

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Corporate Data

IT Holdings Group (As of August 1, 2013)• Principal Companies• Regional Companies in JapanTIS Inc.

HOKKOKU INTEC SERVICE Inc.

INTEC Inc.

KOUSHI INTEC Inc.

AGREX INC.

TIS Hokkaido Inc.

QUALICA INC.

TIS TOUHOKU Inc.

AJS Inc.

TIS WEST JAPAN Inc.

• Marketing Solution Services• Overseas Businesses

NEXWAY Co., Ltd.

Beijing TIS Information Technology Co., Ltd.

April 2008
IT Holdings is created throughthe management integration ofmajor domestic information
service providers TIS Inc. and
INTEC Holdings, Ltd.

2008—2009

Digital TIS Co., Ltd.

• Solution Services and Sales

INTEC Information Technology (Dalian) Co., Ltd.

Cloud Scope Technologies, Inc.

INTEC Information Technology (Shanghai) Co., Ltd.

IUK Inc.

INTEC Information Technology (Wuhan) Co., Ltd.

NEOAXIS Co., Ltd.

INTEC SYSTEMS BANGKOK CO., LTD.
QUALICA ASIA PACIFIC PTE. LTD.

Keyport Solutions, Inc.

QUALICA (SHANGHAI) Inc.

TIS First Manage Inc.

Tianjin TIS Hi-tech Information System Service Co., Ltd.

and then putting the surviving

Tianjin TIS Software Co., Ltd.

AGREX FINE TECHNO INC.

TISI (Singapore) Pte. Ltd.

companies under the old TIS
INTEC Holdings into INTEC Inc.,• Financial IT Services

TIS R&D Center, Inc.

events include splitting off
Group umbrella and merging

OARTECH VIETNAM CO., LTD.

• System Development,
Management and Operations

The Group is reorganized. Key

subsidiaries under the directcontrol of IT Holdings.

TISI (Shanghai) Co., Ltd.

December 2009

Chuo System Corporation
INTEC Solution Power Inc.
IN-X Co., Ltd.

• Other Specific Businesses

TIS Solution Link Inc.

INTEC IT Capital, Inc.

TIS System Service Inc.

IT Service Force Inc.

SORUN CORPORATION joined
the IT Holdings Group.

MITEC Inc.

• Consulting Services and Research

Registration Network, Ltd.

TIS Business Consultants Inc.

SKY INTEC Inc.

April 2011

SorunPure Inc.

• Contract Research Organization(CRO)

ITHD orchestrated a three-

TIS LEASING Co., Ltd.

company merger involving TIS,TIS Total Service Co., Ltd.

SORUN Corporation and UFIT

AC MEDICAL INC.

Co., Ltd., with TIS as the

ALMEC Co., Ltd.

surviving company.

Medical Toukei Co., Ltd.
UPSHE Co., Ltd.

ProfileFinancial
Highlights

To OurStakeholders

Key Points

CSR

Corporate
Governance

R&D

Financial
Review

Financial
SectionCorporate
Data

41

Corporate Data

Corporate Data (As of March 31, 2013)
Company name

IT Holdings Corporation

Established

April 1, 2008

Main business

Management and business execution of group companies
that carry on information and communication businessTokyo head office

21F Sumitomo Fudosan Shinjuku Grand Tower,
17-1 Nishi-shinjuku 8-chome, Shinjuku-ku, Tokyo 160-0023 Japan
Tel. +81-3-5338-2277
Fax. +81-3-5338-2266

Paid-in capital¥ 10 billion

Number of shares
Authorized

280,000,000 shares

Issued87,789,098 shares

Number of shareholders

15,943

Stock listing

Tokyo Stock Exchange, First Section (Securities code: 3626)

Major Shareholders (As of March 31, 2013)
Name

ProfileFinancial
Highlights

Number of Shareholding
sharesratio(Thousands)(%)

Japan Trustee Services Bank, Limited (Trust Account)

7,207

8.2

The Master Trust Bank of Japan, Limited (Trust Account)

5,487

6.3

Nippon Life Insurance Company

2,591

3.0

Employees’ Shareholding Association of IT Holdings
Corporation

2,582

2.9

Japan Trustee Services Bank, Limited (Trust Account 9)

2,378

2.7

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,654

1.9

The Master Trust Bank of Japan, Ltd. (Retirement Benefit
Trust Account, Mitsubishi Electric Corporation Account )

1,598

1.8

Japan Trustee Service Bank, Ltd. (Trust Account 4)

1,582

1.8

OBAYASHI Corporation

1,161

1.3

JCB Co., Ltd.

1,161

1.3

To OurStakeholders

Key Points

CSR

Corporate
Governance

R&D

Financial
Review

Financial
SectionCorporate
Data

42

Corporate Data

Share Composition by Shareholder (As of March 31, 2013; Thousands of Shares)
Individuals and others

17,708 (20.2%)
Financial institutions

35,178 (40.1%)

Total

87,789Overseas Institutions

22,018 (25.1%)
Financial Instruments Business Operator

844 (0.9%)

Other Domestic Institutions

12,038 (13.7%)

Share Composition by Number of Shares Held (As of March 31, 2013; Thousands of Shares)
Less than 100 shares

100–999 shares

93 (0.1%)

3,501 (4.0%)
1,000–9,999 shares

8,140 (9.3%)
10,000–99,999 shares

7,836 (8.9%)

Total

More than 500,000 shares

87,78945,637 (52.0%)

100,000–499,999 shares

22,582 (25.7%)

Stock Price Range

(Yen)
1,500

Financial
Highlights

To OurStakeholders(Thousands of shares)
24,0001,250

20,0001,000

16,000750

12,000

500

8,000

250

4,000

0

ProfileTrading volume

Stock priceJan. Feb. Mar. April May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.
2012
2013

Key Points

CSR

Corporate
GovernanceR&D

0

Financial
Review

Financial
SectionCorporate
DataITHD GroupManagement Philosophy
The ITHD Group seeks to be a corporate citizen whose activities, namely, the provision of various services
utilizing information technology (IT), match its status as a leading corporate group, and will strive to raise
corporate value, supported in this effort by the high regard of all its stakeholders, including clients andshareholders as well as employees and their families.
We will cultivate a vibrant corporate culture that encourages companies and individuals under the Group umbrella
to work toward higher goals and embrace new challenges, and thereby ensure corporate growth.
We will always provide our very best to clients by combining Group strengths to foster higher quality and greater
sophistication in our technological capabilities.
We will uphold high corporate morals and fulfill our social obligations.

For further information contact:
PR & IR Department, Corporate Planning Division
Tel: +81-3-5338-2272
Fax: +81-3-5338-2266
E-mail: ir_info@itholdings.co.jp
Any revisions to information in this annual reportsubsequent to publication will be posted at:
http://www.itholdings.co.jp/e/