November 10 2016

Summary of Consolidated Financial Results for the Second Quarter of the Year Ending March 31, 2017

Company name:

SRA Holdings, Inc.
(URL: http://www.sra-hd.co.jp/)
Stock listing:Tokyo Stock Exchange
Code number:
3817
President:
Toru Kashima
For inquiries, please contact:
Toshiaki Kobayashi, General Manager, Finance Department, Administrative HeadquartersTel:(03)-5979-2666
Scheduled date of submission of quarterly securities report:
November 11, 2016
November 30, 2016
Scheduled commencement of dividend payment:
Quarterly Results Supplemental Materials
Yes
Quarterly Results Presentation MeetingYes

1. Consolidated results for the Second quarter of the fiscal year ending March 2017(from April 1, 2016 to September 30, 2016)(1) Consolidated Operating Results (cumulative total)(All amounts rounded down, % change YoY)
Profit attributable

Net Sales

Ordinary Profit

Operating Income

to owners of the parent
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

18,850

4.4

1,781

15.8

1,476

(11.7)

933(3.3)

18,047

9.4

1,538

56.5

1,670

31.2

966

―

Note：Comprehensive Income
Second quarter of fiscal 2016
Second quarter of fiscal 2015¥(93) million(-%)¥909 million(-%)

Second quarter of fiscal
2016
Second quarter of fiscal
2015

Second quarter of fiscal
2016
Second quarter of fiscal
2015

Net Income

Net Income

per Shareper Share after Dilution

Yen

Yen

76.98

76.65

80.18

79.85

(2) Consolidated Financial Position

Second quarter of fiscal
2016
Fiscal 2015

Total Assets

Net Assets

Shareholders’ Equity Ratio

Millions of yen

Millions of yen%

32,351

18,20256.2

31,823

18,81959.0

Reference: Shareholders’ equity
Second quarter of fiscal 2016: ¥18,168 million
Fiscal 2015: ¥18,789million

12. Dividends
Dividend per Share

Fiscal 2015
Fiscal 2016

End of First QuarterEnd of Second QuarterEnd of Third Quarter

Year-end

Yen

Yen

Yen

Yen

Yen

―
―

25.00
30.00

―

45.00

70.00

―

55.00

85.00

Fiscal 2016(forecast)
Note: Revision of dividend forecast in this quarter:

For the YearNo

3. Consolidated Earnings Forecast for Fiscal 2016 (from April 1, 2016 to March 31, 2017)(% of change from FY2016 First Half or FY2016）

Net Sales

FY2016

Operating Income

Ordinary Profit

Profit attributable

Net Income

to owners of the parent

per Share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

40,000

2.2

3,940

5.4

4,125

7.1

2,667

475.2

219.86

Note: Revision of consolidated results forecast in this quarter:No

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

Yes

(4) Number of shares outstanding (common stock)
1. Number of shares outstanding (including treasury stock)
Second quarter of fiscal 2016:15,240,000 sharesFiscal 2015:15,240,000 shares
2. Number of treasury stock
Second quarter of fiscal 2016:
3,105,175sharesFiscal 2015:
3,113,555shares
3. Average number of shares over period (consolidated total for quarter)
Second quarter of fiscal 2016:
12,130,716 sharesFirst quarter of fiscal 2015:
12,049,069 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.

2

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2017

1. Qualitative Information Concerning Second-Quarter Consolidated Business Results(1) Explanation Concerning Business Results
During the second quarter of the fiscal year (April 1, 2016 to September 30, 2016), the Japanese economy continued
a moderate recovery, as corporate earnings trended at a high level although improvements stagnated, and capital
investment also picked up.
In the information services industry, despite a moderate increase in IT investments, the environment for securing
orders remained severe due to intensifying competition.
Within this business environment, the SRA Holdings Group formulated a Medium-Term Management Strategy
that covers the three-year period from fiscal 2015 through fiscal 2017 (from the fiscal year ending March 2016 to thefiscal year ending March 2018). Under this plan, we will seek to enhance corporate and shareholder value, promoteearnings structure reform and establish a high-income model, while working to further enhance shareholder returns.
Accordingly, we will implement the following measures under the Medium-Term Management Strategy. (For asummary of the Medium-Term Management Strategy, please refer to Announcement of Medium-Term Management
Strategy released on June 24, 2015 http://www.sra-hd.co.jp/Portals/0/ir/index-en.html).

1) Improving profitability in existing operations• Further raise the gross profit margin
We are working to raise profitability by enhancing and strengthening project management, continuously reduce
production overhead costs, carry out SRA’s proprietary IP product business and promote the appropriate level ofproduction staff.
• Improve SG&A expenses-to-sales ratio
We will strive to raise operation efficiency by introducing an account manager system while working to reduce
operational costs of Head Office staff departments and SRA Professional Service, Co., Ltd., which handles a sharedservice.
• Expand orders and sales
A priority measure will be to increase customer share of wallet by deeply cultivating existing customers, and in doing
so, we will work to expand orders and sales.
2) Transforming the SRA business model• We aim to target higher added value in existing operations through the utilization of proprietary IP products thatoffer high gross profit margins (expansion of recurring revenue-based operations, etc.).
• The SRA Group will leverage its high technological capabilities and solid track record in manufacturing/embedding
development, cloud computing and open source software and will combine these areas to promote new business in
the Internet of Things (IoT) field beginning with in-vehicle software.
3) Strengthening linkages between SRA’s proprietary IP product business and overseas operations• We raised Software Research Associates, Inc.’s (SRA’s) gross profit margin sharply by promoting proprietary IP
product business in the Product Sales business, which has a low gross profit margin compared with the Systems
Development business and the System Operations and Infrastructure Development business. “Qt” (GUI application
3

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2017

framework), which boasts an extensive track record in car navigation systems, OA equipment and machine tools,
recorded growth in both sales and profits. In the future, the SRA Group will leverage its strengths in embedded
development and in “Qt” to promote SRA’s proprietary IP product business.
• In July 2016, SRA concluded an agreement for a business and capital alliance with Hackett Enterprises Limited(headquarters: Hong Kong). Hackett carries out various financial businesses in Hong Kong and China. SRA will
utilize its business knowledge and know-how in financial fields to support Hackett’s business promotion. Meanwhile,in the future Hackett will provide support when SRA expands sales in Hong Kong and China. The agreement for abusiness and capital alliance was also part of efforts to promote a strengthening of linkages between SRA’s
proprietary IP product business and overseas operations. (For details please refer tohttp://www.sra-hd.co.jp/Portals/0/ir/others/20160728.pdf (Japanese)).
Due to the above initiatives, our consolidated business results for the second quarter of the fiscal year were as
follows.
Although sales of the Systems Development business leveled off, sales of the System Operations andInfrastructure Development business and the Product Sales business increased. As a result, consolidated net sales
amounted to ¥18,850 million, a 4.4% increase from the same period of the previous fiscal year.
At the profit level, due to an increase in gross profit accompanying growth in sales and an improvement in the
profit margin, operating income rose 15.8% from the same period of the previous fiscal year to ¥1,781 million.
However, due to foreign exchange losses of ¥374 million, ordinary profit decreased 11.7% from the same period of
the previous fiscal year to ¥1,476 million and profit attributable to owners of the parent amounted to ¥933 million, a
3.3% decrease from the same period of the previous fiscal year.
Regarding consolidated results for the second quarter, operating income and the operating income margin
reached all-time highs for the second quarter.
Consolidated results for the second quarter moved steadily in line with our forecast in our main business andtherefore we will pay dividends as planned.

A summary of consolidated business results for the second quarter by business segment is shown below.
1) Systems Development
Although the Systems Development business recorded increases in sales to some manufacturing industries, sales tobanks and securities companies decreased. As a result, net sales decreased 0.9% from the same period of the previous
fiscal year to ¥9,506 million.
2) System Operations and Infrastructure Development
Sales to companies increased. As a result, net sales of the System Operations and Infrastructure Development
business increased 4.6% from the same period of the previous fiscal year to ¥2,041 million.
3) Product Sales
Package sales by SRA and device sales by Advanced Integration Technology, Inc. increased sharply. As a result, net
sales of the Product Sales business rose 12.2% from the previous fiscal year to ¥7,302 million.

4

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2017(2) Explanation Concerning Financial Condition
Total assets at the end of the second quarter amounted to ¥32,351 million, an increase of 1.7% from the end of theprevious fiscal year. Total liabilities increased 8.8% from the end of the previous fiscal year to ¥14,148 million andnet assets decreased 3.3% to ¥18,202 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.
(Total Assets)
Investment securities increased ¥2,032 million to ¥7,779 million due to the purchase of shares of an affiliatedcompany. On the other hand, notes and accounts receivable—trade decreased ¥878 million to ¥6,005 million due tothe collection of trade receivables and short-term investment securities declined ¥506 million to ¥3 million due to theredemption of investment bonds.
(Total Liabilities)
Other increased ¥1,552 million to ¥2,852 million due to an increase in advances received. On the other hand, accrued
expenses declined ¥290 million to ¥520 million and income taxes payable decreased ¥281 million to ¥497 million
owing to the payment of corporate income taxes.
(Total Net Assets)
Retained earnings increased ¥388 million to ¥15,178 million. On the other hand, valuation difference on
available-for-sale securities decreased ¥751 million to ¥240 million due to changes in the market prices of marketable
and investment securities. Foreign currency translation adjustments decreased ¥279 million to ¥177 million.

(3) Explanation Concerning Consolidated Results Forecast and Other Future Projections
No revision has been made to forecasts in Summary of Consolidated Financial Results for the Year Ending March 31,2017 released on May 16, 2016.

2. Summary Information (Notes)(1) Significant changes involving subsidiaries during the period: None
There were no significant changes to specified subsidiaries. However, during the second quarter, Hackett Enterprises
Limited was included as an affiliated company accounted for by the equity method because SRA, a subsidiary of theCompany, acquired a partial equity interest in Hackett Enterprises Limited.
(2) Application of simplified accounting methods and accounting methods specific to the preparation of the quarterly
consolidated financial statements: None
(3) Changes in accounting principles, changes in accounting estimates and restatements(Application of Practical Solution for a Change in Depreciation Method Due to Tax Reform 2016)
Effective beginning in the first quarter of the fiscal year ending March 31, 2017, SRA has adopted the “Practical
Solution for a Change in Depreciation Method Due to Tax Reform 2016 (PITF No. 32 of June 17, 2016)”
accompanying the revision of the Corporation Tax Act. Accordingly, the Company changed its depreciation method
for structures and facilities attached to buildings acquired on and after April 1, 2016 from the declining-balance
5

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2017

method to the straight-line method. The impact of this change on first quarter consolidated financial results is
minimal.
(4)Additional information(Adoption of Guidance on Recoverability of Deferred Tax Assets)
Effective from the first quarter of the fiscal year ending March 31, 2017, the Company has adopted the“Implementation Guidance on Recoverability of Deferred Tax Assets (ASBJ Guidance No. 26 of March 28, 2016).”

6

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2017

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of Yen)FY2016(as of September 30, 2016)

FY2015(as of March 31, 2016)
ASSETS
Current assets:
Cash and deposits

8,813

7,389

Notes and accounts receivable—trade

6,884

6,005

Short-term investment securities

509

3

Merchandise and finished goods

751

687

1,387

1,785

Short-term loans receivable

139

530

Accounts receivable—other

2,641

2,560

Deferred tax assets

569

532

Other

528

575

Allowance for doubtful accounts

(19)

(16)

22,20420,053

Buildings

334

335

Accumulated depreciation

(251)

(250)

Buildings, net

82

85

Machinery, equipment and vehicles

555

555

Accumulated depreciation

(509)

(511)

Machinery, equipment and vehicles,

46

43

Other

114

113

Accumulated depreciation

(83)

(78)

Other, net

31

35

Total property, plant and equipment

160

164

55

37

1,061

1,184

1,117

1,221

Investment securities

5,746

7,779

Long-term loans receivable

1,937

2,074

Deferred tax assets

1,005

1,339

Guarantee deposits

338

326

Net defined benefit asset

46

47

Other

565

510

Allowance for doubtful accounts(1,282)(1,151)

Allowance for investment loss

(16)

(16)

Work in process

Total current assets
Noncurrent assets:
Property, plant and equipment

Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets

7

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2017

Total investments and other assets

8,341

10,910Total noncurrent assets

9,619

12,297

Total assets

31,82332,351

8

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2017

(Millions of Yen)FY2016(as of September 30,
2016)

FY2015(as of March 31, 2016)
LIABILITIESCurrent liabilities:
Accounts payable—trade

3,288

3,448

Short-term loans payable

1,179

1,179

Accrued expenses

811

520

Income taxes payable

779

497

Accrued consumption taxes

507

284

Provision for bonuses

559

651

Provision for directors’ bonuses

60

86

Provision for loss on construction contracts

415

445

5

–

Other

1,300

2,852

Total current liabilities

8,906

9,965

–

0

3,953

4,038

144

143

4,097

4,182

13,00414,148

Capital stock

1,000

1,000

Capital surplus

4,524

4,533

Retained earnings

14,79015,178Treasury stock(2,628)(2,619)Total shareholders’ equity

17,68618,092

Valuation difference on available-for-sale securities

992

240

Foreign currency translation adjustments

457

177

Remeasurements of defined benefit plans

(347)

(342)

Total accumulated other comprehensive income

1,102

75

30

34

Total net assets

18,81918,202

Total liabilities and net assets

31,82332,351

Asset retirement obligations

Noncurrent liabilities:
Deferred tax liabilities
Net defined benefit liability
Provision for directors’ retirement benefits
Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders’ equity

Accumulated other comprehensive income

Subscription rights to shares

9

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2017(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated Cumulative Total for Second Quarter)
Consolidated cumulative
total for second quarterof fiscal 2015 (from
April 1, 2015 to
September 30, 2015)
18,047(Millions of Yen)
Consolidated cumulative
total for second quarterof fiscal 2016 (from
April 1, 2016 to
September 30, 2016)
18,850

Cost of sales

14,73515,044Gross profit

3,312

3,805

Selling, general and administrative expenses

1,773

2,024

Operating income

1,538

1,781

Interest received

103

47

Dividends received

27

15

Guarantee commission received

6

–

Other

26

36

Total non-operating income

164

98

Interest expenses

128Foreign exchange losses

8374

Stock transfer agency service fee

9

8

Other

0

12

Total non-operating expenses

31

403

1,670

1,476

Gain on sales of investment securities

10

Total extraordinary income

10Loss on retirement of noncurrent assets

00Loss on valuation of investment securities

93–

Loss on valuation of golf club membership

–

9

Other

–

0

Total extraordinary loss

93

10

Income before income taxes

1,579

1,465

Income taxes-current

550

499

Income taxes-deferred

62

32

Total income taxes

612

531

Net income

966

933

Profit attributable to owners of the parent

966

933

Net sales

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary loss

10

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2017

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

Consolidated cumulative

total for second quarter of

total for second quarter offiscal 2015 (from April 1,

fiscal 2016 (from April 1,2015 to September 30,

2016 to September 30,

2015)

2016)

Net income

966

933

Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustments

(61)

(751)

(0)

(279)

5

4

(57)

(1,027)

909

(93)

909

(93)

－

－

Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income(breakdown)Comprehensive income attributable to owners of
the parent
Comprehensive income attributable tonon-controlling interests

11

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2017(3) Quarterly Consolidated Statements of Cash Flows
Consolidated
cumulative total forsecond quarter offiscal 2015 (from April
1, 2015 to September
30, 2015)(Millions of Yen)
Consolidated
cumulative total forsecond quarter offiscal 2016 (from April
1, 2016 to September
30, 2016)

1,579

1,465

133

203

Amortization of goodwill–

12

Increase (decrease) in net defined benefit liability

51

85

8

(0)

Increase (decrease) in provision for bonuses

77

93

Increase (decrease) in provision for directors’ bonuses

(22)

25

Increase (decrease) in allowance for doubtful accounts

3(2)

Increase (decrease) in allowance for investment loss

0

2

(130)

(62)

Interest expenses

12

8Loss (gain) on valuation of investment securities

93–

Loss (gain) on sales of investment securities

(1)

(0)

Loss on retirement of noncurrent assets

00Decrease (increase) in notes and accounts receivable—trade

710

789

Decrease (increase) in inventories

(458)

(348)

Increase (decrease) in notes and accounts payable—trade

(82)

214

Increase (decrease) in other liabilities

64

1,337

Increase (decrease) in accrued consumption taxes

353

(222)

Other, net

(250)

115

Subtotal

1,435

3,717

Interest and dividends income received

66

29Interest expenses paid

(12)

(8)

Income taxes paid

(736)

(755)

Net cash provided by operating activities

752

2,982

Proceeds from sales of short-term investment securities

300–

Purchase of property, plant and equipment

(8)

(31)

Proceeds from sale of property, plant and equipment–

0

Purchase of intangible assets

(71)

(89)

Purchase of investment securities

(91)

(93)

Proceeds from sales of investment securities

120

310

Purchase of stocks of subsidiaries and affiliates(383)(3,500)

Payments of loans receivable(408)(1,124)

Collection of loans receivable

10

348

Net cash provided by (used in) operating activities:
Income before income taxes and minority interests
Depreciation and amortization

Increase (decrease) in provision for directors’ retirement
benefits

Interest and dividend income

Net cash provided by (used in) investing activities:

12

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2017

Payments into time deposits

(0)

(80)

Payments for guarantee deposits

(0)

(0)

Proceeds from collection of guarantee deposited0

1

Other, net

(1)

(0)

(533)

(4,260)

Proceeds from stock issuance to non-controlling shareholders–

2

Purchase of treasury stock

–

(0)

(457)

(545)

Proceeds from exercise of stock option

79

14

Other

(0)

–

(378)

(529)

Effect of exchange rate changes on cash and cash equivalents

(12)

(202)

Net increase (decrease) in cash and cash equivalents(172)(2,009)Cash and cash equivalents at beginning of period

8,792

8,833

Cash and cash equivalents at the end of quarter

8,620

6,823

Net cash used in investing activities
Net cash provided by (used in) financing activities:

Cash dividends paid

Net cash used in financing activities

13

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2017(4) Notes Concerning Consolidated Financial Statements for the Second Quarter(Notes Concerning Premise of Going Concern)
None(Notes on Significant Changes in Shareholders’ Equity)
None(Segment Information and others)[Segment Information]
I. Consolidated cumulative total for second quarter of fiscal 2015 (from April 1, 2015 to September 30, 2015)
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

*1

amountthe quarterly
consolidated
statements ofDevelopment

income*2

Sales(1) Sales to
Customers

9,590

1,951

6,506

18,047－18,047

10

136

171

317

(317)

－

Total sales

9,600

2,087

6,677

18,365(317)

18,047

Segment income

1,075

438

615

2,129

(590)

1,538

(2) Intersegment
sales ortransfers

Notes:
1. The segment income adjustment of minus ¥590 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 income on the quarterly consolidated statements of income.

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

14

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2017

II. Consolidated cumulative total for second quarter of fiscal 2016 (from April 1, 2016 to September 30, 2016)
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

*1

amountthe quarterly
consolidated
statements ofDevelopment

income*2

Sales(1) Sales to
Customers

9,506

2,041

7,302

18,850－18,850

7

112

164

284

(284)

－

Total sales

9,514

2,153

7,467

19,134(284)

18,850

Segment income

1,432

476

621

2,530

(749)

1,781

(2) Intersegment
sales ortransfers

Notes:
1. The segment income adjustment of minus ¥749 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 income on the quarterly consolidated statements of income.

2. Information concerning impairment loss on fixed assets or goodwill for each reporting segment
None(Significant subsequent events)
None

15

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2017

4. Other Information
1. Status of Production, Orders and Salesl Production amounts
Production by segment in the second quarter of the fiscal year ending March 31, 2017 is as follows.
Consolidated cumulative total for
Segment information by type of businesssecond quarter of fiscal 2016 (from
April 1, 2016 to September 30,% change YoY

2016)
Systems Development (Millions of Yen)
System Operations and Infrastructure
Development (Millions of Yen)
Total (Millions of Yen)

9,949

100.8

2,047

104.2

11,996

101.4

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

l Purchase amounts
Purchases by segment in the second quarter of the fiscal year ending March 31, 2017 are as follows.
Consolidated cumulative total for
Segment information by type of businesssecond quarter of fiscal 2016 (from
April 1, 2016 to September 30,% change YoY

2016)
Product Sales (Millions of Yen)

4,557

111.4

Total (Millions of Yen)

4,557

111.4

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

16

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2017l Status of orders
Status of orders by segment in the second quarter of the fiscal year ending March 31, 2017 is as follows.
Orders received
Segment information by type of business(Millions ofOrder backlog% change YoY

Yen)
Systems Development(Millions of% change YoY

Yen)

10,131

99.8

5,199

104.4

1,724

107.7

1,305

103.7

Product Sales

7,269

104.8

3,114

64.7

Total

19,124

102.3

9,619

87.1

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.

l Sales amounts
Sales by segment in the second quarter of the fiscal year ending March 31, 2017 are as follows.
Consolidated cumulative total for
Segment information by type of businesssecond quarter of fiscal 2016 (from
April 1, 2016 to September 30,% change YoY

2016)
Systems Development (Millions of Yen)

9,506

99.1

2,041

104.6

Product Sales (Millions of Yen)

7,302

112.2

Total (Millions of Yen)

18,850104.4

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.
2. Litigation, etc.
Company subsidiary Software Research Associates, Inc. (hereafter SRA) filed a damage lawsuit against Happinet
Corporation (hereafter Happinet) for damage compensation on March 31, 2011. In response, Happinet filed a lawsuit
against SRA in the Tokyo District Court on April 6, 2011 for the return of business consignment expenses. Bothcases were unified through litigation procedures and examined jointly and on October 31, 2016 the first decision was
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SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2017

announced at the Tokyo District Court. SRA objects to this first decision and at the Extraordinary Meeting of theBoard of Directors convened on November 7, 2016 resolved to appeal this decision and filed an appeal with theTokyo High Court on November 8, 2016. We are continuing to make responses to ensure that SRA’s assertions arerecognized at the appeal hearing.

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