Information Meeting Materials
for the First Three Quarters of the Fiscal Year Ending March 31, 2015
February 2, 2015

Copyright © 2015 IT Holdings Corporation All rights reserved.

Fiscal 2015 First Three Quarters Financial Highlights
Fiscal 2015 Performance Forecast
Reference Materials

Copyright © 2015 IT Holdings Corporation All rights reserved.

1

Fiscal 2015 First Three Quarters:
Financial Highlights(Millions of yen)

• Net sales grew year on year, against a backdrop of positive developments, especially favorable business conditions.
• On the profit front, we achieved a huge year-on-year improvement, largely due to the higher net sales starting pointand efforts to prevent projects from turning unprofitable.

Net sales ¥254,887 million

Operating income ¥ 10,803 million

Net income ¥4,866 million

YOY change: +¥ 16,440 million [+ 6.9%]

YOY change: +¥ 2,415 million [+ 28.8%]

YOY change: +¥ 1,655 million [+ 51.5%]

10,803

254,887

238,447+16,440[+6.9%]

4,866

8,388
+2,415[+28.8%]3,211+1,655[+51.5%]First Three Quarters First Three Quartersof Fiscal 2014of Fiscal 2015

First Three Quarters First Three Quartersof Fiscal 2014of Fiscal 2015

First Three Quarters First Three Quartersof Fiscal 2014of Fiscal 2015

Net sales shifted in a favorable direction, mainly
due to accurate identification of customers’ IT
investment needs. All three core segments
delivered year-on-year increases.

The higher net sales starting point and successful efforts
to prevent unprofitable projects were key in absorbing
costs associated with structural reinforcement geared
toward securing and executing several large-scale
development projects. Operating income wasdramatically higher year on year.

Net income was also significantly higher year onyear, paralleling the increase in operating income.

Copyright © 2015 IT Holdings Corporation All rights reserved.

2Fiscal 2015 First Three Quarters:
Net Sales and Operating Income Analysis(Billions of yen)

Net Sales

254.88238.44IT Infrastructure
Services+ 2.06
[84.60→86.67]

Financial IT
Services+ 4.62

Industrial IT
Services+ 9.88

Other-1.34

Inter-segment+ 1.21[12.34→11.00][(14.09)→(12.88)][+ 6.9%][103.18→113.07][52.40→57.02]

First Three Quartersof Fiscal 2014

First Three Quartersof Fiscal 2015
(Billions of yen)

Operating Income

8.38
IT Infrastructure
Services- 0.14

Financial ITServices+0.20（5.12→4.97）[3.39→3.59]

First Three Quartersof Fiscal 2014+16.44

Copyright © 2015 IT Holdings Corporation All rights reserved.

10.80

Other-0.02

Inter-segment+0.12[1.58→1.56][( 1.02 )→(0.89)]+ 2.41[+ 28.8%]

Industrial ITServices+2.25[(0.68)→1.56]

First Three Quartersof Fiscal 2015
3Fiscal 2015 First Three Quarters:
Sales and Income for Key Segments
IT Infrastructure Services(Millions of yen)

Financial IT Services

Industrial IT Services

Net Sales ¥86,673 million

Net Sales ¥57,026 million

Net Sales ¥113,070 million

YOY change : +¥2,065 million [+2.4%]

YOY change : +¥4,620 million [+8.8%]

YOY change : +¥9,886 million [+9.6%]

86,67384,60857,02652,406+ 4,620[+8.8%]+2,065[+2.4%]

113,070

103,184+ 9,886[+9.6%]First Three Quarters First Three Quartersof Fiscal 2014of Fiscal 2015

First Three Quarters First Three Quartersof Fiscal 2014of Fiscal 2015

First Three Quarters First Three Quartersof Fiscal 2014of Fiscal 2015

Operating Income ¥4,977 million

Operating Income ¥3,597 million

Operating Income ¥1,563 million

YOY change : -¥146 million [- 2.8%]

YOY change : +¥206 million [+6.1%]

YOY change : +¥2,250 million

4,977

5,123
‐146
[‐2.8%]+ 206[+6.1%]First Three Quarters First Three Quartersof Fiscal 2014of Fiscal 2015

First Three Quarters First Three Quartersof Fiscal 2014of Fiscal 2015

Segment sales benefited from firm demand for data center
services, but the scope of demand from existing clients wassmaller, leading to a year-on-year drop in operating income.

Segment sales were up, buoyed mainly by a trend toward
greater IT investment by clients. This increase was enough tocover expenses associated with structural reinforcement
geared toward securing and executing several large-scale
development projects, which led to higher segment operating
income.

Copyright © 2015 IT Holdings Corporation All rights reserved.

1,563

3,597

3,391+ 2,250

First Three Quartersof Fiscal 2014

(687)

First Three Quartersof Fiscal 2015

A favorable shift in demand across a range of client sectors
pushed segment sales up year-on-year. This, and successful
efforts to prevent unprofitable projects, offset an increase inprojects with low profitability and higher costs associatedwith proposal activities, including approaches to boost
interest in large-scale development projects.
*Segment sales include intersegment sales.

4Fiscal 2015 First Three Quarters:
Sales by Client Sector(Millions of yen)

55,34349,781

38,82734,76828,707[+11.7%]

Credit card

20,096 18,043 18,445 18,129

17,115 16,588[-10.2%][-1.7%][-3.1%]

Banking

Insurance

Other finance[+11.2%]32,37423,734 25,679[+12.8%]17,9983.3%
7.6% 14.6%
8.4%
7.7%

7.2%
8.3%
12.0%
10.0%
Financial sector: 37.9% Industrial sector: 51.2%
Public sector: 7.6%
Other sectors: 3.3%
Copyright © 2015 IT Holdings Corporation All rights reserved.

Distribution[+6.4%]
ServicePublic institutions

8,123 8,506[+4.7%]
OthersFirst Three Quarters of Fiscal 2015

Credit card
Banking
Insurance
Other finance
Assembly-based
manufacturing
Processing-based
manufacturing
Distribution
ServicePublic institutions
Others

19,142[+8.2%]

Assembly-based Processing-based
manufacturing manufacturing

First Three Quarters of Fiscal 2014

20.9%

22,253[+13.1%]First Three Quarters of Fiscal 2014

Net Sales
Breakdown
by ClientSector

19,676First Three Quarters of Fiscal 20153.4%
7.5% 15.2%
7.1%
7.1%
by Client
Sector
6.5%

Net Sales
21.7% Breakdown

8.7%
10.1% 12.7%

Financial sector: 35.9% Industrial sector: 53.2%
Public sector: 7.5%
Other sectors: 3.4%

5Fiscal 2015 First Three Quarters:
Order Status(Millions of yen)

• Order volume was considerably higher year on year, spurred by the booking of large projects for clients in the public sector.
• Order backlog was held to a slight increase over the level recorded a year ago because of progress in dealing with backlog despite theincrease in orders.

Orders received during the term ¥141,747 million

Order backlog at term-end ¥71,131 million

YOY change : +¥18,603 million [+15.1%]

YOY change : +¥1,466 million [+2.1%]

141,747

123,144

71,131

69,665+18,603[+15.1%]+ 1,466[+2.1%]First Three Quarters First Three Quartersof Fiscal 2014of Fiscal 2015

First Three Quarters First Three Quartersof Fiscal 2014of Fiscal 2015

Financial IT Services

Industrial IT Services

46,01943,458+ 2,561[+5.9%]First Three Quarters First Three Quartersof Fiscal 2014of Fiscal 2015

79,686

95,727

Financial IT Services
23,61020,640+ 16,041[+ 20.1%]-2,970[-12.6%]First Three Quarters First Three Quartersof Fiscal 2014of Fiscal 2015

First Three Quarters First Three Quartersof Fiscal 2014of Fiscal 2015

Copyright © 2015 IT Holdings Corporation All rights reserved.

Industrial IT Services

50,49146,055+ 4,436[+ 9.6%]First Three Quarters First Three Quartersof Fiscal 2014of Fiscal 2015

•Orders received during the term, and backlog at term-end apply to Software Development only.

6Changes in Orders Received

89,188[+13.5%]44,270[+10.6%](Millions of yen)

94,23385,492[+5.7%]

85,119[+2.1%][-0.4%][+16.6%][-8.5%]

86,472[-1.6%]

89,385[+3.6%]

44,76744,410[+1.1%]

51,171[-0.7%]

44,91886,24841,082[+5.3%][+15.2%][+4.3%]

49,577[-3.1%]

47,731[+2.3%]

52,362

49,466[+10.1%]

33,948[-17.4%]

1st Half
2nd Half
Fiscal 2012

46,680

1st Half
2nd Half
Fiscal 2013

39,568[-20.0%][+8.7%]

1st Half
2nd Half
Fiscal 2014

Second quarter

Fourth quarter

First quarter

Third quarter

Copyright © 2015 IT Holdings Corporation All rights reserved.

36,89541,654[+41.9%][+5.3%]

1st Half
2nd Half
Fiscal 2015

Orders received during the term apply to Software Development only.
Percentage figures in columns indicate increase or decrease from the previous term.

7

Changes in Orders Received(Millions of yen)

Financial IT Services
34,96028,15733,30432,063[+1.5%][+13.9%][-4.7%]

19,543[+1.5%]

15,705[+33.1%]

16,359[+24.5%]

15,417[+1.4%]

1st Half

2nd Half[+7.3%]
11,798[-9.9%]

33,11330,81330,816[-3.9%][-0.6%][+0.0%]

21,434[+9.7%]

19,129[+21.8%]20,469[-4.5%][-11.0 %]16,358[-0.0%]

11,870[-23.0%]11,684[-28.6%]

12,644[+6.5%]

13,786

15,203[+18.0%][+20.2%]

1st Half

2nd Half

1st Half

2nd Half

1st Half

2nd Half

Fiscal 2012

Fiscal 201317,029Fiscal 2014

Fiscal 2015

Industrial IT Services
62,16961,030[+16.7%]50,533[+2.5%]

32,471[+20.6%]24,868[-2.4%]

28,559[+12.5%]
1st Half
Fiscal 2012

51,816[+1.9%]

25,665[+7.9%]

33,107[+15.9%]2nd Half

1st Half

53,359[+5.7%][+3.0%]

27,551[-5.2%]

29,108[-2.1%]

22,079[-14.0%]27,883[-15.8%]24,251[+9.8%]

27,867

2nd Half

1st Half

2nd Half

1st Half

29,737[+19.6%]

Fiscal 2013

Fiscal 2014

Second quarter

Fourth quarter

First quarter

Third quarter

Copyright © 2015 IT Holdings Corporation All rights reserved.

58,568[-10.8%][+2.5%]
29,062[-10.5%]55,43430,701[+11.4%]37,159[+53.2%][-0.1%]

2nd Half
Fiscal 2015

Orders received during the term apply to Software Development only.
Percentage figures in columns indicate increase or decrease from the previous term.

8Fiscal 2015 First Three Quarters Financial Highlights
Fiscal 2015 Performance Forecast
Reference Materials

Copyright © 2015 IT Holdings Corporation All rights reserved.

9Fiscal 2015: Performance Forecasts(Millions of yen)

• Progress toward targets is generally on track, so targets set at the beginning of the fiscal year remain unchanged.

Net Sales ¥355,000 million

Operating Income ¥21,500 million

Net Income ¥10,000 million

YOY change: +¥8,353 million [+2.4%]

YOY change: +¥1,990 million [+10.2%]

YOY change: +¥2,087 million [+26.4%]

355,000

346,647[Estimate]+8,353[+2.4%][Estimate]+1,990[+10.2%]
5.6%

Fiscal 2014

21,50019,510Fiscal 2015

Emphasizing financial IT services and industrial IT
services, we will expand our business reach byaccurately responding to our customers’ IT investment
needs. This should pave the way to higher net sales.

OperatingmarginFiscal 2014

6.1%

Fiscal 2015

The higher net sales starting point, along withenhanced productivity and efforts to prevent theoccurrence of unprofitable projects, should lead tohigher income.

Copyright © 2015 IT Holdings Corporation All rights reserved.

10,000
7,913[Estimate]+2,087[+26.4%]114.26 yen

Net Income
90.16 yen
per Share

Fiscal 2014

Fiscal 2015

Higher operating income and lower extraordinary
expenses will be key to an anticipated year-on-yearincrease in net income.

10

Fiscal 2015:
Net Sales and Operating Income Analysis [Forecast](Billions of yen)

Net Sales

346.64IT Infrastructure
Services+1.84[115.36→117.20]

Industrial ITServices+ 4.76

Financial ITServices+ 2.35

355.00
Other- 2.29
[16.49→14.20]

Inter-segment+ 1.63[Estimate]+8.35[+2.4%][- 18.59→ - 16.90][158.23→163.00][75.14→77.50]

Fiscal 2014

Fiscal 2015

21.50

Operating Income
Other- 0.15

19.51
IT Infrastructure
Services- 0.15[7.65→7.50]

Financial IT
Services+0.61[6.38→7.00]

Fiscal 2014
Copyright © 2015 IT Holdings Corporation All rights reserved.

Industrial IT
Services+1.31[4.68→6.00][2.15→2.00]

Inter-segment+0.36(Billions of yen)

[Estimate]+1.99[+10.2%][- 1.36→ - 1.00]

Fiscal 2015
11Fiscal 2015:
Key Business Segment Performances [Forecast]
IT Infrastructure Services

Financial IT Services(Millions of yen)

Industrial IT Services

Net Sales ¥117,200 million

Net Sales ¥77,500 million

Net Sales ¥163,000 million

YOY change: +¥1,840 million [+1.6%]

YOY change: +¥2,352 million [+3.1%]

YOY change: +¥4,766 million [+3.0%]

117,200

115,360

77,50075,148[Estimate][Estimate][Estimate]+ 2,352[+ 3.1%]+1,840[+1.6%]

Fiscal 2014

Fiscal 2015

163,000

158,234

Fiscal 2014

+ 4,766[+ 3.0%]Fiscal 2015

Fiscal 2014

Fiscal 2015

Operating Income ¥7,500 million

Operating Income ¥7,000 million

Operating Income ¥6,000 million

YOY change: - ¥152 million [-2.0%]

YOY change: +¥615 million [+9.6%]

YOY change: +¥1,313 million [+28.0%]

7,500

7,652

6.6%

Fiscal 2014-152[- 2.0%][Estimate]

Operatingmargin

6.4%
Fiscal 2015

Stable demand for data center services and BPO
services should push net sales above the fiscal 2014
level. But pressure, such as a higher facilities expenseburden, could cause operating income to drop.

6,385
8.5%

Fiscal 2014

7,000+ 615[Estimate][+ 9.6%]
Operatingmargin

3.0%
Fiscal 2015

[Estimate]+ 1,313[+ 28.0%]

9.0%Greater IT investment to meet new demand throughout
the financial sector, particularly among credit cardcompanies, is sure to support higher segment sales andincome in fiscal 2015.

Copyright © 2015 IT Holdings Corporation All rights reserved.

6,000
4,687

Fiscal 2014

Operatingmargin

3.7%
Fiscal 2015

Efforts to expand business activities paralleling overall
increase in clients’ IT investment as well as measures
to enhance productivity and prevent the occurrence ofunprofitable projects should underpin higher segment
sales and income.

*Segment sales include intersegment sales.

12Fiscal 2015 First Three Quarters Financial Highlights
Fiscal 2015 Performance Forecast
Reference Materials

Copyright © 2015 IT Holdings Corporation All rights reserved.

13

Fiscal 2015 Second Half:
Key Business Segment Performances [Forecast]
Net sales
182,149

183,282

Second Halfof Fiscal 2014

11,858

6.5%
Second Halfof Fiscal 2015

IT Infrastructure Services
Net sales
58,96558,504+461 [Estimate][+0.8%]

Second Halfof Fiscal 2014

Operating Income
13,830[Estimate]- 1,133[- 0.6%]

Second Halfof Fiscal 2015

7.0%

Operatingmargin

Second Halfof Fiscal 2015

Financial IT Services
Net sales
38,66139,065- 404[-1.0%]

Second Halfof Fiscal 2014

Second Halfof Fiscal 2015
+729[+20.6%] [Estimate]

6.8%

9.1%

Operatingmargin

Second Halfof Fiscal 2015

Second Halfof Fiscal 2014

Operatingmargin[Estimate]

Copyright © 2015 IT Holdings Corporation All rights reserved.

6,111[Estimate]

4,056+2,055[+50.7%]
Second Halfof Fiscal 2014

11.0%

Second Halfof Fiscal 2015

Second Halfof Fiscal 2015

Industrial IT Services
Net sales
87,24285,795- 1,447 [Estimate][- 1.7%][Estimate]

Operating Income
4,2683,990

Net Income

7.6%

3,539- 116[- 2.8%]

Second Halfof Fiscal 2014

+1,972 [Estimate][+16.6%]

Second Halfof Fiscal 2014

Operating Income
4,106(Millions of yen)

Second Halfof Fiscal 2014

Second Halfof Fiscal 2015

Operating Income
5,171+1,352

3,819[+35.4%] [Estimate]

4.4%

Operatingmargin

Second Halfof Fiscal 2014

6.0%

Second Halfof Fiscal 2015

*Amounts for second-half estimates are calculated by subtracting first-half results fromthe annual estimates. Segment sales include intersegment sales.

14Cautionary Statements• In these materials, IT Holdings is abbreviated ITHD.
• All statements described in these materials are based on information available to management regarding the ITHD Group—that is, ITHD
and the subsidiaries under its umbrella—as of the presentation date and certain assumptions deemed reasonable at this time. No intent is
implied of promise by the Company to achieve such forward-looking statements. Indeed, various factors may cause future results to be
substantially different from the assumptions presented in these materials.
•Amounts for each three-month quarter are calculated by subtracting data for the respective period from the cumulative total.