February 4 2021

Summary of Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2021

Company name:

SRA Holdings, Inc.
(URL: https://www.sra-hd.co.jp/)
Stock listing:Tokyo Stock Exchange
Code number:
3817
President:
Toru Kashima
For inquiries, please contact:
Toshiaki Kobayashi, Executive Officer, Group Finance & AccountingTel:+81-3-5979-2666
Scheduled date of submission of quarterly securities report:
February 5, 2021
Scheduled commencement of dividend payment:
Quarterly Results Supplemental Materials
Yes
Quarterly Results Presentation MeetingNo

1. Consolidated results for the Third quarter of the fiscal year ending March 2021
(from April 1, 2020 to December 31, 2020)(1) Consolidated Operating Results (cumulative total)(All amounts rounded down, % change YoY)
Profit (loss) attributable

Net Sales

Ordinary Profit

Operating Profit

to owners of parent

Third quarter of fiscal
2021
Third quarter of fiscal
2020

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

28,535

(8.0)

3,277

3.7

3,206

(3.3)

1,930

-

31,006

3.9

3,161

15.4

3,316

7.9

(1,321)-

Note：Comprehensive Income
Third quarter of fiscal 2021
Third quarter of fiscal 2020

Third quarter of fiscal
2021
Third quarter of fiscal
2020¥2,887million(-%)¥(752)million(-%)

Net Profit

Net Profit

per Shareper Share after Dilution

Yen

Yen

156.45-(107.15)-(2) Consolidated Financial Position

Third quarter of fiscal
2021
Fiscal2020

Total Assets

Net Assets

Shareholders’ Equity Ratio

Millions of yen

Millions of yen%

35,875

21,60360.1

34,93420,052

57.4

Reference: Shareholders’ equity
Third quarter of fiscal 2021 : ¥21,573million
Fiscal 2020
: ¥20,042million

2. Dividends
Dividend per Share
End of First QuarterEnd of Second QuarterEnd of Third Quarter

Year-end

Yen

Yen

Yen

Yen

Yen

―
―

40.00
40.00

―

70.00

110.00―70.00

110.00Fiscal 2020
Fiscal 2021
Fiscal 2021(forecast)

Note: Revision of dividend forecast in this quarter:

For the YearNo

3. Consolidated Earnings Forecast for Fiscal 2021(from April 1, 2020 to March 31, 2021)(% of change from FY 2020）

Net Sales

Operating Profit

Profit (loss) attributable

Ordinary Profit

to owners of parent

FY2021Net Profit
per Share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

42,700

(2.2)

4,500

(9.1)

4,500

(9.1)

3,150

-

255.34

Note: Revision of consolidated results forecast in this quarter: No
Regarding the consolidated financial forecast for the fiscal year ending March 2021, it is difficult to calculate an accurate financial forecast because it is notpossible to reasonably estimate the timing of the convergence of New Coronavirus Infection(COVID-19). Therefore the forecast is considered the apparent
impact of COVID-19 only. The forecasts may change depending on the convergence of COVID-19 in the future.

4. Others(1) Changes to significant subsidiaries during the current period :No(2) Application of simplified accounting and application of special accounting :(3) Changes in accounting principles and procedures, presentation, etc.
1. Changes caused by revision of accounting standards, etc. :2. Changes other than 1. above:
No

No

No

(4) Number of shares outstanding (common stock)
1. Number of shares outstanding (including treasury stock)
Third quarter of fiscal 2021:
15,240,000 sharesFiscal 2020:
15,240,000 shares
2. Number of treasury stock
Third quarter of fiscal 2021:
2,903,322 sharesFiscal 2020:
2,903,279 shares
3. Average number of shares over period (consolidated total for quarter)
Third quarter of fiscal 2021:
12,336,679 shares
Third quarter of fiscal 2020:
12,336,721 shares*Indication of quarterly review procedure implementation status
This earnings release is not subject to the quarterly review process as required by the Financial Instruments and Exchange Act of Japan.
As of the date when this earning release was issued, the review process on quarterly financial statements as required by the Financial
Instruments and Exchange Act had been finished.

*Explanation relating to the appropriate use of results forecasts, and other noteworthy items
Forward-looking statements in this earnings release, such as forecasts of results of operations, are based on the information currently
available and the certain assumptions that we regard as reasonable and therefore actual results may differ materially from those containedin or suggested by any forward-looking statements.

SRA Holdings, Inc. (3817) Summary of Third-Quarter Consolidated Financial Results for the Year Ending March 31, 2021

1) Qualitative Information Concerning Third-Quarter Consolidated Business Results(1) Explanation Concerning Business Results
Our consolidated business results for the third quarter of the fiscal year were as follows.
Although sales of the System Operations and Infrastructure Development business increased, sales of the Systems
Development and sales of the Products Sales businesses decreased due to the impact of COVID-19. Therefore,
consolidated net sales amounted to ¥28,535 million, an 8.0% decrease from the same period of the previous fiscal
year. At the profit level, although the gross profit remained flat, as a result of efforts to enhance the efficiency ofselling, sales, general and administrative (SG&A) (sales administrative) expenses, operating profit increased 3.7%
from the same period of the previous year to ¥3,277 million. Ordinary profit decreased 3.3% year on year to ¥3,206
million due to the recording of foreign exchange losses.
Profit attributable to owners of parent increased to ¥1,930 million due to a decrease in loss on valuation of
investment securities and because no impairment losses on property, plant and equipment were recorded during the
fiscal period.

A summary of consolidated business results for the third quarter by business segment is shown below.

1) Systems Development
The Systems Development business recorded a decrease in sales in manufacturing industries despite such factors as
an increase in sales to financial industry and service industries. As a result, net sales decreased 3.7% year on year to¥14,819 million.

2) System Operations and Infrastructure Development
Orders from companies increased. As a result, net sales of the System Operations and Infrastructure Development
business increased 3.7% from the same period in the previous fiscal year to ¥4,010 million.

3) Product Sales
Device sales by Advanced Integration Technology, Inc. and SRA decreased. As a result, net sales of the Product Sales
business decreased 17.4% from the same period in the previous fiscal year to ¥9,705 million.

Based on the Medium-Term Management Strategy (year ending March 31, 2020 to year ending March 31, 2022),
the SRA Group aims to improve corporate value and enhance shareholder returns and will strive to strengthen thefoundation of its existing businesses while also vigorously promoting new businesses as the Group works in unison
toward 1) achieving sustainable growth, 2) improving profitability and 3) furthering enhancing shareholder returns.
We have positioned fiscal 2021 (year ending March 31, 2021) as a “year for business development” and willleverage our achievements in the previous fiscal year to further promote our growth strategies (Transforming the
SRA business model, Expanding our global business and Responding to digital transformation (DX)) and we will
focus on attaining the targets for the final fiscal year of this strategy.

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SRA Holdings, Inc. (3817) Summary of Third-Quarter Consolidated Financial Results for the Year Ending March 31, 2021

(2) Explanation Concerning Financial Condition
Total assets at the end of the third quarter amounted to ¥35,875 million, an increase of 2.7% from the end of theprevious fiscal year. Total liabilities decreased 4.1% from the end of the previous fiscal year to ¥14,272 million andnet assets increased 7.7% to ¥21,603 million from the end of the previous fiscal year.

Details of the principal increases and decreases from the end of the previous fiscal year are as follows.

(Assets)
Cash and deposits increased ¥2,386 million to ¥7,876 million, investment securities increased ¥800 million to¥9,330 million and work in process increased ¥482 million to ¥1,462 million. On the other hand, notes and accounts
receivable – trade decreased ¥1,517 million to ¥5,889 million due to the collection of trade receivables and accounts
receivable – other decreased ¥576 million to ¥2,544 million.

(Liabilities)
Advances received increased ¥157 million to ¥3,447 million. On the other hand, accounts payable – trade decreased¥891 million to ¥3,096 million and accrued expenses decreased ¥158 million to ¥736 million(Net Assets)
Valuation difference on available-for-sale securities increased ¥744 million to ¥1,460 million due to changes in themarket prices of investment securities and retained earnings increased ¥572 million to ¥16,636 million.

(3) Explanation Concerning Consolidated Results Forecast and Other Future Projections
No revision has been made to forecasts in the Summary of Consolidated Financial Results for the Year Ending March
31, 2020 released on May 27, 2020. In the future, we will quickly disclose relevant information if there is a need torevise the forecast of financial results.

2

SRA Holdings, Inc. (3817) Summary of Third-Quarter Consolidated Financial Results for the Year Ending March 31, 2021

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of Yen)
As of March 31, 2020

As of December 31, 2020

ASSETS
Current assets:
Cash and deposits

5,489

7,876

Notes and accounts receivable – trade

7,406

5,889

64

138

1,176

934

980

1,462

Short-term loans receivable

3,160

3,116

Accounts receivable – other

3,121

2,544

Other

649

860

Allowance for doubtful accounts

(11)

(10)

22,036

22,812

Buildings

405

408

Accumulated depreciation

(280)

(291)

Buildings, net

124

117

Machinery, equipment and vehicles

579

497

Accumulated depreciation

(533)

(458)

Machinery, equipment and vehicles, net

45

38

Other

163

155

Accumulated depreciation

(116)

(111)

Other, net

46

43

Total property, plant and equipment

217

199

372

364

372

364

8,530

9,330

852

868

Deferred tax assets

2,171

1,559

Guarantee deposits

410

402

Retirement benefit asset

50

52

Other

320

308

Allowance for doubtful accounts

(8)

(6)

Allowance for investment loss

(18)

(18)

Securities
Merchandise and finished goods
Work in process

Total current assets
Non-current assets:
Property, plant and equipment

Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable

3

SRA Holdings, Inc. (3817) Summary of Third-Quarter Consolidated Financial Results for the Year Ending March 31, 2021

12,30812,498

Total non-current assets

12,89813,062

Total assets

34,93435,875

Total investments and other assets

4

SRA Holdings, Inc. (3817) Summary of Third-Quarter Consolidated Financial Results for the Year Ending March 31, 2021

(Millions of Yen)
As of March 31, 2020

As of December 31, 2020

LIABILITIESCurrent liabilities:
Accounts payable – trade

3,987

3,096

Short-term borrowings

198

193

Accrued expenses

895

736

Income taxes payable

548

498

Accrued consumption taxes

629

619

Advances received

3,289

3,447

Provision for bonuses

546

526

Provision for bonuses for directors and other officers

23

134

Provision for loss on construction contracts

330

330

Other

148

375

10,599

9,959

40

33

4,018

4,041

218

233

5

4

4,282

4,312

14,881

14,272

Share capital

1,000

1,000

Capital surplus

4,702

4,702

Retained earnings

16,063

16,636

Treasury shares(2,402)(2,402)

Total shareholders’ equity

19,363

19,936

Valuation difference on available-for-sale securities

715

1,460

Foreign currency translation adjustment

218

382

Remeasurements of defined benefit plans

(256)

(206)

Total accumulated other comprehensive income

678

1,636

10

29

Total net assets

20,052

21,603

Total liabilities and net assets

34,93435,875

Total current liabilities
Non-current liabilities:
Deferred tax liabilities
Retirement benefit liability
Provision for retirement benefits for directors and otherofficers
Other
Total non‐current liabilities
Total liabilities
NET ASSETS
Shareholders’ equity

Accumulated other comprehensive income

Share acquisition rights

5

SRA Holdings, Inc. (3817) Summary of Third-Quarter Consolidated Financial Results for the Year Ending March 31, 2021

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated Cumulative Total for Third Quarter)(Millions of Yen)
Nine months ended
December 31, 2019

Nine months ended
December 31, 2020

Net sales

31,00628,535

Cost of sales

24,24921,806Gross profit

6,756

6,728

Selling, general and administrative expenses

3,594

3,451

Operating profit

3,161

3,277

Interest income

141

131

Dividend income

77

116

Compensation income

－

30

Other

48

20

Total non-operating income

268

299

Interest expenses

53Foreign exchange losses

83

337

Stock transfer agency service fee

13

13

Other

11

15

Total non-operating expenses

112

370

3,316

3,206

Gain on sales of investment securities

16

107

Gain on reversal of share acquisition rights

25

0

Other

7

2

Total extraordinary income

49

109

Impairment losses

1,046

－

Loss on valuation of investment securities

3,368

289

0

5

Total extraordinary losses

4,415

294

Profit (loss) before income taxes(1,049)3,020

Income taxes-current

647

841

Income taxes-deferred

(375)

249

272

1,090

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses

Other

Total income taxes

6

SRA Holdings, Inc. (3817) Summary of Third-Quarter Consolidated Financial Results for the Year Ending March 31, 2021

Profit (loss)(1,321)

1,930

Profit (loss) attributable to owners of parent(1,321)

1,930

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SRA Holdings, Inc. (3817) Summary of Third-Quarter Consolidated Financial Results for the Year Ending March 31, 2021

(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated Cumulative Total for Third Quarter)(Millions of Yen)

Profit (loss)

Nine months ended

Nine months ended

December 31, 2019

December 31, 2020

(1,321)

1,930

Valuation difference on available-for-sale securities

619

744

Foreign currency translation adjustment

(98)

163

Remeasurements of defined benefit plans, net of tax

48

49

Total other comprehensive income

569

957

(752)

2,887

(752)

2,887

－

－

Other comprehensive income

Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

8

SRA Holdings, Inc. (3817) Summary of Third-Quarter Consolidated Financial Results for the Year Ending March 31, 2021

(3) Notes Concerning Consolidated Financial Statements for the Third Quarter(Notes Concerning Premise of Going Concern)
None(Notes on Significant Changes in Shareholders’ Equity)
None

9SRA Holdings, Inc. (3817) Summary of Third-Quarter Consolidated Financial Results for the Year Ending March 31, 2021

(Segment Information and others)[Segment Information]
I. Consolidated cumulative total for third quarter of the previous fiscal year (April 1, 2019 to December 31,
2019)
1. Information concerning net sales and income or losses for each reporting segment(Millions of Yen)
AmountSystemOperations

Systems
Development

andInfrastructurerecorded on
Product
Sales

Adjustment

Total

amount*1

the quarterly
consolidated
statements ofDevelopment

income*2

Sales(1) Sales to
Customers

15,3893,866

11,75031,006－31,006

5

179

116

301

(301)

－

Total sales

15,395

4,045

11,86631,308(301)

31,006

Segment income

2,609

985

699

4,294

(1,133)3,161(2) Intersegment
sales ortransfers

Notes:
1. The segment income adjustment of minus ¥1,133 million is a company-wide expense not apportioned to any reporting segment.
Company-wide expenses are general and administrative expenses and R&D expenses not attributed to any reporting segment.
2. Segment income is adjusted in operating profit on the quarterly consolidated statements of income.

2. Information concerning impairment loss on fixed assets or goodwill for each reporting segment
In the Product Sales segment, we carried out impairment accounting for software assets by reevaluating the asset
value of a U.S. subsidiary and as a result we recorded a ¥1,046 million impairment loss on fixed assets.

10

SRA Holdings, Inc. (3817) Summary of Third-Quarter Consolidated Financial Results for the Year Ending March 31, 2021

II. Consolidated cumulative total for third quarter of the fiscal year under review (April 1, 2020 to December 31,
2020)
1. Information concerning net sales and income or losses for each reporting segment(Millions of Yen)
AmountSystemOperations

Systems
Development

andInfrastructurerecorded on
Product

Adjustment

Total

Sales

amount*1

the quarterly
consolidated
statements ofDevelopment

income*2

Sales(1) Sales to
Customers

14,819

4,010

9,705

28,535－28,535

33

177

69

281

(281)

－

Total sales

14,852

4,188

9,775

28,816(281)

28,535

Segment income

2,363

1,127

940

4,431

(1,153)3,277(2) Intersegment
sales ortransfers

Notes:
1. The segment income adjustment of minus ¥1,153 million is a company-wide expense not apportioned to any reporting segment.
Company-wide expenses are general and administrative expenses and R&D expenses not attributed to any reporting segment.
2. Segment income is adjusted in operating profit on the quarterly consolidated statements of income.

2. Information concerning impairment loss on fixed assets or goodwill for each reporting segment
None

11

SRA Holdings, Inc. (3817) Summary of Third-Quarter Consolidated Financial Results for the Year Ending March 31, 2021

(Significant subsequent events)
Not applicable

12

SRA Holdings, Inc. (3817) Summary of Third-Quarter Consolidated Financial Results for the Year Ending March 31, 2021

3. Other Information
1. Status of Production, Orders and Sales
 Production amounts
Production by segment in the third quarter of the fiscal year under review is as follows.
Segment information by type of business

Nine months ended% change YoY

December 31, 2020

Systems Development (Millions of Yen)
System Operations and Infrastructure
Development (Millions of Yen)
Total (Millions of Yen)

15,139

(6.9)

4,115

5.0

19,255(4.6)

Notes:
1. Amounts are based on sales price.
2. The amounts above do not include consumption tax.
3. Intersegment transactions are offset.

 Purchase amounts
Purchases by segment in the third quarter of the fiscal year under review are as follows.
Segment information by type of business

Nine months ended% change YoY

December 31, 2020

Product Sales (Millions of Yen)

4,773

(27.6)

Total (Millions of Yen)

4,773

(27.6)

Notes:
1. Amounts are based on purchase price.
2. The amounts above do not include consumption tax.
3. Intersegment transactions are offset.

13

SRA Holdings, Inc. (3817) Summary of Third-Quarter Consolidated Financial Results for the Year Ending March 31, 2021

 Status of orders
Status of orders by segment in the third quarter of the fiscal year under review is as follows.
OrdersSegment information by type of businessreceived(Millions ofOrder backlog% change YoY% change YoY

Yen)

Yen)
Systems Development(Millions of

15,314

(7.3)

4,598

(10.8)

2,868

(6.7)

1,289

(9.2)

Product Sales

9,224(24.5)

3,741(16.1)

Total

27,406(13.9)

9,629(12.7)

System Operations and Infrastructure
Development

Notes:
1. Amounts are based on sales price.
2. The amounts above do not include consumption tax.
3. Intersegment transactions are offset.

 Sales amounts
Sales by segment in the third quarter of the fiscal year under review are as follows.
Segment information by type of business

Nine months ended% change YoY

December 31, 2020

Systems Development (Millions of Yen)

14,819

(3.7)

4,010

3.7

Product Sales (Millions of Yen)

9,705

(17.4)

Total (Millions of Yen)

28,535(8.0)

System Operations and Infrastructure
Development (Millions of Yen)

Notes:
1. Amounts are based on sales price.
2. The amounts above do not include consumption tax.
3. Intersegment transactions are offset.

14