August 6 2020

Summary of Consolidated Financial Results for the First 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, General Manager, Finance Department, Administrative HeadquartersTel:(03)-5979-2666
Scheduled date of submission of quarterly securities report:
August 6, 2020―
Scheduled commencement of dividend payment:
Quarterly Results Supplemental Materials
Yes
Quarterly Results Presentation MeetingNo

1. Consolidated results for the first quarter of the fiscal year ending March 2021
(from April 1, 2020 to June 30, 2020)(1) Consolidated Operating Results (cumulative total)(All amounts rounded down, % change YoY)
Profit attributable

Net Sales

Ordinary Profit

Operating Profit

to owners of the parent
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

First quarter offiscal 2021

9,750

(2.6)

935

13.5

961

42.4

254

376.1

First quarter offiscal 2020

10,012

2.5

824

11.6

674

(32.1)

53(89.3)

Note：Comprehensive Income
First quarter of fiscal 2020
First quarter of fiscal 2019

¥ 339 million (-%)¥ (588) million (-%)

Earnings

Earnings

per Shareper Share after Dilution

Yen

Yen

First quarter offiscal 2021

20.65

-

First quarter offiscal 2020

4.34

-

(2) Consolidated Financial Position
Total Assets

Net Assets

Shareholders’ Equity Ratio

Millions of yen

Millions of yen%

First quarter offiscal 2021

34,045

19,533

57.3

Fiscal 2020

34,93420,052

57.4

Reference: Shareholders’ equity
First quarter of fiscal 2021: ¥ 19,518 million
Fiscal 2020: ¥ 20,042 million

2. Dividends
Dividends per Share

Fiscal 2020
Fiscal 2021

End of First QuarterEnd of Second QuarterEnd of Third Quarter

Year-end

Yen

Yen

Yen

Yen

Yen

―
―

40.00

―

70.00

110.00

40.00

―

70.00

110.00Fiscal 2021(forecast)

For the Year

Note: Revision of dividend forecast in this quarter: No

3. Consolidated Earnings Forecast for Fiscal 2021 (from April 1, 2020 to March 31, 2021)(Percentage indicate year-to-year changes)

Net Sales

Operating Profit

Ordinary Profit

Profit attributableto owners of the parent

Fiscal 2021

Net Income
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)
First quarter of fiscal 2021:
15,240,000 sharesFiscal 2020:
15,240,000 shares
2. Number of treasury stock
First quarter of fiscal 2021:
2,903,322sharesFiscal 2020:
2,903,279shares
3. Average number of shares over period (consolidated total for quarter)
First quarter of fiscal 2021:
12,336,681 sharesFirst 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.

*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 First-Quarter Consolidated Financial Results for the Year Ending March 31, 2021

1) Qualitative Information Concerning First-Quarter Consolidated Business Results(1) Explanation Concerning Business Results
Our consolidated business results for the first quarter of the fiscal year were as follows.
Although sales of the Systems Development and the System Operations and Infrastructure Development
business increased, sales of the Products Sales businesses decreased. Therefore, consolidated net sales amounted to¥9,750 million, a 2.6% decrease from the same period of the previous fiscal year.
At the profit level, we achieved an increase in gross profit while the gross profit margin also improved as aresult of such factors as a shift to high-profit businesses. Additionally, due to efforts to enhance the efficiency ofselling expenses, selling, sales, general and administrative (SG&A) (sales administrative) expenses decreased year
on year and operating profit increased 13.5% from the same period of the previous year to ¥935 million andordinary profit also increased 42.4% year on year to ¥961 million. Profit attributable to owners of parent increased
376.1% from the same period of the previous fiscal year to ¥254 million despite the recording of extraordinary
losses (loss on valuation of investment securities).
A summary of consolidated business results for the first quarter by business segment is shown below.
1) Systems Development
The Systems Development business recorded an increase in sales to service industries although sales in manufacturingindustries decreased. As a result, net sales increased slightly year on year to ¥4,713 million.
2) System Operations and Infrastructure Development
Orders from companies and university-related orders increased. As a result, net sales of the System Operations andInfrastructure Development business increased 2.1% from the same period in the previous fiscal year to ¥1,309
million.
3) Product Sales
SRA and overseas subsidiaries posted decreases in device sales. As a result, net sales of the Product Sales businessdecreased 7.2% from the same period in the previous fiscal year to ¥3,727 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.

1

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

(2) Explanation Concerning Financial Condition
Total assets at the end of the first quarter amounted to ¥34,045 million, a decrease of 2.5% from the end of the previous
fiscal year. Total liabilities decreased 2.5% from the end of the previous fiscal year to ¥14,512 million and net assets
decreased 2.6% to ¥19,533 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 ¥530 million to ¥6,020 million and work in process increased ¥402 million to ¥1,382
million. On the other hand, notes and accounts receivable - trade decreased ¥1,233 million to ¥6,173 million due tothe collection of trade receivables and investment securities decreased ¥539 million to ¥7,991 million due to suchfactors as changes in market prices.
(Liabilities)
Advances received increased ¥389 million to ¥3,679 million and provision for bonuses increased ¥372 million to¥919 million. On the other hand, in the new fiscal year the cancellation of accrued accounts proceeded, beginningwith a ¥608 million decrease in accounts payable - trade due to the progress of payments and a ¥318 million decrease
in income taxes payable owing to the payment of income taxes, and total liabilities decreased ¥369 million to ¥14,512
million.
(Net Assets)
Profit amounted to ¥254 million while on the other hand dividends paid amounted to ¥863 million. As a result,retained earnings decreased ¥608 million to ¥15,455 million. Due mainly to these factors, total net assets decreased¥519 million to ¥19,533 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.

2

SRA Holdings, Inc. (3817) Summary of First-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 June 30, 2020

ASSETS
Current assets:
Cash and deposits

5,489

6,020

Notes and accounts receivable - trade

7,406

6,173

64

229

1,176

868

980

1,382

Short-term loans receivable

3,160

3,025

Accounts receivable – other

3,121

3,154

Other

649

616

Allowance for doubtful accounts

(11)

(6)

22,036

21,465

Buildings

405

409

Accumulated depreciation

(280)

(283)

Buildings, net

124

126

Machinery, equipment and vehicles

579

580

Accumulated depreciation

(533)

(536)

Machinery, equipment and vehicles, net

45

43

Other

163

165

Accumulated depreciation

(116)

(116)

Other, net

46

49

Total property, plant and equipment

217

219

372
372

380

8,530

7,991

852

1,094

Deferred tax assets

2,171

2,151

Guarantee deposits

410

402

Retirement benefit asset

50

50

Other

320

316

Allowance for doubtful accounts

(8)

(8)

Allowance for investment loss

(18)

(17)

Securities
Merchandise and finished goods
Work in process

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

Intangible assets
Other
Total intangible assets

380

Investments and other assets
Investment securities
Long-term loans receivable

3

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

Total investments and other assets

12,308

11,979Total non-current assets

12,898

12,579Total assets

34,934

34,045

4

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

(Millions of Yen)
As of March 31, 2020

As of June 30, 2020

LIABILITIESCurrent liabilities:
Accounts payable – trade

3,987

3,379

Short-term borrowings

198

198

Accrued expenses

895

788

Income taxes payable

548

229

Accrued consumption taxes

629

411

Advances received

3,289

3,679

Provision for bonuses

546

919

Provision for bonuses for directors and other officers

23

40

Provision for loss on construction contracts

330

332

Other

148

245

10,59910,223

40

4

4,018

4,060

218

218

5

5

4,282

4,289

14,881

14,512

Share capital

1,000

1,000

Capital surplus

4,702

4,702

Retained earnings

16,063

15,455

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

Total shareholders’ equity

19,363

18,775

Valuation difference on available-for-sale securities

715

790

Foreign currency translation adjustment

218

212

Remeasurements of defined benefit plans

(256)

(239)

Total accumulated other comprehensive income

678

763

10

14

Total net assets

20,052

19,533

Total liabilities and net assets

34,934

34,045

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 First-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 First Quarter)(Millions of Yen)
Three months ended
June 30, 2019

Three months ended
June 30, 2020

Net sales

10,012

9,750

Cost of sales

7,928

7,621

Gross profit

2,084

2,129

Selling, general and administrative expenses

1,259

1,193

824

935

Interest income

44

51

Dividend income

33

25

Compensation income

-

30

Other

14

5

Total non-operating income

92

113

Interest expenses

120Foreign exchange losses

222

66

Stock transfer agency service fee

2

3

Share of loss of entities accounted for using equity method

-

11

Other

4

6

242

88

674

961

Gain on sales of investment securities

14

29

Gain on reversal of share acquisition rights

25

-

Other

-

0

Total extraordinary income

39

30

383

554

0

4

Total extraordinary losses

384

559

Profit before income taxes

330

431

Income taxes-current

420

237

Income taxes-deferred

(143)

(60)

Total income taxes

276

177

Operating profit
Non-operating income

Non-operating expenses

Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses
Loss on valuation of investment securities
Other

6

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

Profit53

254

Profit attributable to owners of parent

53

254

7

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

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

ProfitThree months ended

Three months ended

June 30, 2019

June 30, 2020
53

254

(770)

74

Foreign currency translation adjustment

112

(6)

Remeasurements of defined benefit plans, net of tax

16

16

(641)

85

(588)

339

(588)

339

-

－

Other comprehensive income
Valuation difference on available-for-sale securities

Total 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 First-Quarter Consolidated Financial Results for the Year Ending March 31, 2021

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

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

(Segment Information and others)[Segment Information]
I. Consolidated cumulative total for first quarter of the previous fiscal year (April 1, 2019 to June 30, 2019)
1. Information concerning net sales and income or losses for each reporting segment(Millions of Yen)
AmountSystemOperations

Systems
Development

andInfrastructurerecorded on
Product

Total

Sales

Adjustment

the quarterly

amount*1

consolidated
statements ofDevelopment

income*2

Sales(1) Sales to
Customers(2) Intersegment
sales ortransfers
Total sales
Segment income

4,711

1,282

4,017

10,012－

10,012

1

57

37

96

(96)

－

4,713

1,340

4,055

10,109(96)

10,012

670

320

243

1,233

(409)

824

Notes:
1. The segment income adjustment of minus ¥409 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

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

II. Consolidated cumulative total for first quarter of the fiscal year under review (April 1, 2020 to June 30, 2020)
1. Information concerning net sales and income or losses for each reporting segment(Millions of Yen)
AmountSystemOperations

Systems
Development

andInfrastructurerecorded on
Product

Total

Sales

Adjustment

the quarterly

amount*1

consolidated
statements ofDevelopment

income*2

Sales(1) Sales to
Customers(2) Intersegment
sales ortransfers
Total sales
Segment income

4,713

1,309

3,727

9,750

－

9,750

11

58

21

91

(91)

－

4,724

1,368

3,749

9,841

(91)

9,750

635

352

340

1,328

(392)

935

Notes:
1. The segment income adjustment of minus ¥392 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

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

(Significant subsequent events)
Not applicable

12

SRA Holdings, Inc. (3817) Summary of First-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 first quarter of the fiscal year under review is as follows.
Segment information by type of business

Three months ended% change YoY

June 30, 2020

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

4,918

(4.4)

1,358

4.6

6,276

(2.6)

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 first quarter of the fiscal year under review are as follows.
Segment information by type of business

Three months ended% change YoY

June 30, 2020

Product Sales (Millions of Yen)

1,890

(13.8)

Total (Millions of Yen)

1,890

(13.8)

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 First-Quarter Consolidated Financial Results for the Year Ending March 31, 2021

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

Yen)

Yen)
(2.7)
Systems Development
System Operations and Infrastructure
Development

5,365

4,754

(1.5)

1,728

0.6

3,601

4.6

10,0841.0(23.2)
605

Product Sales

3,106

Total

9,076

(10.6)(7.2)

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 first quarter of the fiscal year under review are as follows.
Segment information by type of business

Three months ended% change YoY

June 30, 2020

Systems Development (Millions of Yen)

4,713

0.0

1,309

2.1

Product Sales (Millions of Yen)

3,727

(7.2)

Total (Millions of Yen)

9,750

(2.6)

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