May 13, 2021

Summary of Consolidated Financial Results for the Year Ended March 31, 2021
Company name:
Stock listing:Code number:President:
For inquiries, please contact:Tel:

SRA Holdings, Inc. (URL: https://www.sra-hd.co.jp/)
Tokyo Stock Exchange

3817
Toru Kashima
Toshiaki Kobayashi, Executive Officer, Group Finance & Accounting+81-3-5979-2666
Date of ordinary general meeting of shareholders:
Scheduled commencement of dividend payment:
Scheduled date of submission of financial reports:
Results Supplement Materials: Yes
Results Presentation Meeting : Yes

June 24, 2021
June 9, 2021
July 24, 2021

1. Consolidated Financial Results for Fiscal 2020(from April 1, 2019 to March 31, 2020)(1) Consolidated Operating Results
Net Sales

Fiscal 2021
Fiscal 2020

(All amounts rounded down, % change YoY)
Profit (loss) attributable
Ordinary Profit
to owners of parent

Operating Profit

Millions of Yen%

Millions of Yen%

Millions of Yen%

Millions of Yen%

39,386
43,642

(9.8)
7.0

5,026
4,948

1.6
21.3

5,268
4,951

6.4
10.8

3,073
(612)

-

Note : Comprehensive Income
Fiscal 2021: ¥3,764 million (-%)
Fiscal 2020: ¥51 million ((95.9)％)
Net Profit
per Share

Net Profit per Shareafter Dilution

Yen
Fiscal 2021
249.12
Fiscal 2020
(49.68)Reference: Gain (loss) on equity method investments:
Fiscal 2021: ¥(306) million
Fiscal 2020: ¥(118) million

Ratio of Net Profit to
Shareholders’ Equity

Ratio of Ordinary
Profit to Total Assets

Ordinary Profit
Ratio

Yen

%

%

%

-

14.5
(3.0)

14.5
13.8

12.8
11.3

(2) Consolidated Financial Position
Millions of Yen%

Shareholders’ Equity
per ShareYen

22,48920,052

59.2
57.4

1,819.78
1,624.61

Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Cash and Cash Equivalents
at the End of Period

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

4,999
3,392

(135)
(619)

(1,372)(1,371)

8,854
5,370

Total Assets

Net Assets

Millions of Yen
Fiscal 2021
37,945
Fiscal 2020
34,934
Reference: Shareholders’ equity
Fiscal 2021: ¥22,449 million
Fiscal 2020: ¥20,042 million

Shareholders’ Equity Ratio(3) Consolidated Cash Flows

Fiscal 2021
Fiscal 2020

2. Dividends
Dividend per Share
End ofFirst
Quarter
Fiscal 2020
Fiscal 2021
Fiscal 2021(forecast)End ofSecondQuarter

End ofThird
QuarterYear-end

For theyear

Total
Dividends(for the year)

Dividend
Propensity(consolidated)

Net Assets to
Dividend
Ratio(consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of Yen

%

%

－
－
－

40.00
40.00
40.00

－
－
－

70.00
80.00
80.00

110.00120.00120.00

1,357
1,480

48.2
50.2

6.6
7.0

1

3. Consolidated Earnings Forecast for Fiscal 2022 (from April 1, 2021 to March 31, 2022)（% change YoY is for the fiscal year or for interim period）
Net Sales

Operating Profit

Profit (loss) attributableto owners of parent

Ordinary Profit

Net Profit
per Share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

19,60042,000

2.3
6.6

2,100
5,060

(3.2)
0.7

2,400
4,760

12.3
(9.7)

1,400
2,950

34.4
(4.0)

113.48239.13Full Year

Regarding the consolidated financial forecast for the fiscal year ending March 2022, 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) Changes in accounting principles, changes in accounting estimates, and restatements
1. Changes caused by revision of accounting standards, etc. :No
2. Changes other than 1. above:No
3. Changes in accounting estimates:
No
4. Restatements:
No(3) Number of outstanding shares (common shares)
1. Shares issued at the end of term (including own shares)
Fiscal 2021: 15,240,000 sharesFiscal 2020: 15,240,000 shares
2. Own shares at end of term
Fiscal 2021: 2,903,371 sharesFiscal 2020: 2,903,279 shares
3. Average number of shares over period
Fiscal 2021: 12,336,670 sharesFiscal 2020: 12,336,721 shares（Reference）Non-Consolidated Financial Results for Fiscal 2021
(1) Non-Consolidated Operating Results
Net Sales

Fiscal 2021
Fiscal 2020

Fiscal 2021
Fiscal 2020

Operating Profit(from April 1, 2020 to March 31, 2021(% change YoY)
Ordinary Profit

Net Income

Millions of Yen%

Millions of Yen%

Millions of Yen%

Millions of Yen

%

540
2,592

(79.2)
53.1

185
2,243

(91.8)
56.6

165
2,227

(92.6)
57.2

120
2,172

(94.5)
68.7

Net Income
per Share

Net Income per Shareafter Dilution

Yen

Yen

8.90
160.63-(2) Non-Consolidated Financial Position
Total Assets

Net Assets

Millions of Yen

Millions of Yen

8,385
8,926
Reference: Shareholders’ equity:
Fiscal 2021: ¥7,278 million
Fiscal 2020: ¥8,611 million
Fiscal 2021
Fiscal 2020

7,317
8,621

%

Shareholders’ Equity
per Share
Yen

86.8
96.5

538.05636.59

Shareholders’ Equity Ratio*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.

2

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Year Ended March 31, 2021

1.

Analysis of Business Results and Financial Position(1) Summary of Business Results
The SRA Group positioned fiscal 2021 (year ended March 31, 2021) as a “year for business development” to promote
our growth strategies (Transforming the SRA business model, Expanding our global business and Responding todigital transformation (DX)) and implemented a variety of measures.
In the Systems Development business, System Operations and Infrastructure Development business and Product
Sales business, we further expanded our achievements in fiscal 2021 (year ended March 31, 2021) and leveraged ourbusiness results in each industry and widely carried out our DX-related business as well as made progress in giving
shape to collaboration with fast-growing companies involved with DX in the Asian region. Furthermore, we promoted
DX-related business in multiple industries by combining the basic technologies the Group has cultivated over longyears with cutting-edge technologies that support DX such as AI, the cloud, Big Data/analytics and security as well as
IoT, which is a comprehensive technology. However, the business results of many of our customers were significantly
affected by the spread of COVID-19 in Japan and overseas, and the environment surrounding the SRA Group’s businessbecame even more severe than initially anticipated.
Due to the above initiatives, our consolidated business results for the fiscal year were as follows.
Sales of the System Operations and Infrastructure Development business increased, but sales in the Systems
Development business and Product Sales business decreased. Therefore, consolidated net sales amounted to ¥39,386
million, a 9.8% decrease from the previous fiscal year. At the profit level, although gross profit remained virtuallyflat, we worked to enhance the efficiency of selling, general and administrative expenses. As a result, operating profit
increased 1.6% from the previous year to ¥5,026 million and ordinary profit also increased 6.4% year on year to¥5,268 million. Profit attributable to owners of parent (hereafter, net profit) amounted to ¥3,073 million.
As detailed above, although consolidated net sales fell short of the full-year forecast, operating profit and ordinary
profit exceeded the full-year forecast. Net income fell slightly short of the full-year forecast.
Regarding dividends for the fiscal year ended March 31, 2021, operating profit and ordinary profit exceeded ourfull-year earnings forecast. Therefore, to enhance the redistribution of profits to shareholders, the Company will pay
year-end cash dividends per share of ¥80.00, an increase of ¥10.00, and full-year cash dividends per share of ¥120.00.
Consolidated Business Results(Millions of Yen)

Net sales

39,142

39,41040,79343,642

FY2021
Most recent forecast
figures (announced on
May 27, 2020)
42,700Operating profit

4,180

4,175

4,078

4,948

4,500

5,026

Ordinary profit

4,211

4,762

4,469

4,951

4,500

5,268

2,646

2,060

2,023

(612)

3,150

3,073

FY2017FY2018FY2019FY2020

Actual
39,386

Profit (loss)
attributable toowners of parent

3

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Year Ended March 31, 2021

A summary of consolidated business results for the fiscal year by business segment is shown below.
● Systems Development
The Systems Development business posted a decrease in sales to manufacturing industries. As a result, net sales
decreased 6.3% from the previous fiscal year to ¥20,704 million.
● System Operations and Infrastructure Development
Orders from companies increased. As a result, net sales of the System Operations and Infrastructure Development
business increased 3.9% from the previous fiscal year to ¥5,500 million.
● Product Sales
Device sales by Advanced Integration Technology, Inc. decreased sharply and SRA and overseas subsidiaries also
posted decreases in device sales. As a result, net sales of the Product Sales business decreased 18.9% from theprevious fiscal year to ¥13,181 million.
(2) Summary of Financial Position
Total assets at the end of the fiscal year amounted to ¥37,945 million, an increase of 8.6% from the end of the previous
fiscal year. Total liabilities increased 3.9% from the end of the previous fiscal year to ¥15,456 million and net assets
increased 12.2% to ¥22,489 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 ¥3,450 million to ¥8,940 million and investment securities increased ¥499 million to¥9,029 million. On the other hand, deferred tax assets decreased ¥592 million to ¥1,578 million and accounts receivable- other decreased ¥521 million to ¥2,599 million.
(Liabilities)
Income taxes payable increased ¥686 million to ¥1,235 million. On the other hand, accounts payable - tradedecreased ¥364 million to ¥3,622 million.
(Net Assets)
Retained earnings increased ¥1,716 million to ¥17,780 million and valuation difference on available-for-salesecurities increased ¥798 million to ¥1,513 million due to fluctuations in the market value of investment securities.
(3) Summary of Cash Flows
Cash and cash equivalents on a consolidated basis at the end of the fiscal year increased ¥3,483 million compared withthe previous fiscal year-end to ¥8,854 million. The status of cash flows and factors underlying changes in cash flows
for the fiscal year are shown below.
Cash Flows from Operating Activities
Net cash provided by operating activities amounted to ¥4,999 million compared with ¥3,392 million in the previous
fiscal year.
This consisted mainly of profit before income taxes of ¥4,956 million, loss on valuation of investment securities
4

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Year Ended March 31, 2021

of ¥404 million, share of loss of entities accounted for using equity method of ¥306 million, income taxes paid of¥549 million and decrease in trade payables of ¥364 million.
Cash Flows from Investing Activities
Net cash used in investing amounted to ¥135 million compared with net cash used in investing activities of ¥619
million in the previous fiscal year. This consisted mainly of ¥447 million in proceeds from sale of investment
securities, ¥349 million for purchase of investment securities and ¥143 million for loan advances.
Cash Flows from Financing Activities
Net cash used in financing activities amounted to ¥1,372 million compared with ¥1,371 million in the previous fiscal
year. This was due mainly to ¥1,357 million in dividends paid.
Cash Flow Indicators
FY2019FY2020

FY2021

Shareholders’ equity ratio (%)
Shareholders’ equity ratio at market value (%)

57.9

57.4

59.2

82.5

75.5

88.1

Debt redemption years to cash flow (years)

－

0.1

－

206.0

1,018.0

1,982.6

Interest coverage ratio (times)
Notes:
Shareholders’ equity ratio: Shareholders’ equity/total assets

Shareholders’ equity ratio at market value: Market capitalization/total assets
Debt redemption years to cash flow: Interest-bearing debt/operating cash flow
Interest coverage ratio: Operating cash flow/interest expenses
1. All indicators were calculated using consolidated financial figures.
2. Market capitalization is calculated using the total number of shares outstanding at the end of the fiscal period
excluding treasury stock.
3. Cash flows from operating activities is used for cash flow.
4. Interest-bearing debt includes all debt that pays interest as listed on the Consolidated Balance Sheets.

(4) Future Outlook
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 toward 1) achieving sustainablegrowth, 2) improving profitability and 3) further enhancing shareholder returns.
Reference: Notice Concerning the Establishment of the Medium-Term Management Strategy (Announced on May 9,
2019)https://www.sra-.co.jp/ir/manage_policy.html (Written in Japanese)
Since March 2020, the Japanese and overseas economies have been rapidly worsening due to the impact of
COVID-19, and various industries beginning with manufacturing industries are facing extremely harsh conditions.
Corporate profits have also been declining sharply because of the impact of COVID-19 and extremely harsh
5SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Year Ended March 31, 2021

conditions are expected to continue in the future due to the effects of the global spread of COVID-19. There areconcerns that the impact of COVID-19 will also further undermine the Japanese and overseas economies.
The SRA Group as well has a high proportion of business in manufacturing industries and thus recognizes that it
will be affected by COVID-19 to a measurable extent in the future.
With regards to the outlook for consolidated results for the fiscal year ending March 31, 2022, we forecast net salesof ¥42,000 million, operating profit of ¥5,060 million, ordinary profit of ¥4,760 million and profit attributable to ownersof parent of ¥2,950 million.
Regarding dividends for the fiscal year ending March 31, 2022, we plan to pay ordinary cash dividends per shareof ¥120.00 (ordinary cash dividends per share of ¥120.00 consisting of a ¥40.00 interim dividend and a year-end
dividend of ¥80.00). In the event that these dividends are paid, the consolidated payout ratio is expected to be 50.2%.
Based on our policy of enhancing shareholder returns, we will strive to pay stable and high dividends with the aimof attaining a 50% payout ratio as in the past.
Regarding the consolidated earnings forecast for the fiscal year ending March 31, 2022, the SRA Group cannot
reasonably estimate when COVID-19 will end. Therefore it is difficult to calculate a highly accurate results forecast
and our forecast is thus based on the assumed amount of impact at the present time. Our earnings forecast could change
depending on the ending of COVID-19 in the future.

2.

Basic Thinking Concerning Adoption of Accounting Standard

In preparation for the future adoption of International Financial Reporting Standards (IFRS), discussion is progressing
regarding the establishment of in-house manuals and guidelines and the timing of adoption.

6

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Year Ended March 31, 2021

3.

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

As of March 31, 2021

ASSETS
Current assets:
Cash and deposits

5,489

8,940

Notes and accounts receivable - trade

7,406

7,575

64

101

1,176

1,050

980

966

Short-term loans receivable

3,160

3,288

Accounts receivable - other

3,121

2,599

Other

649

580

Allowance for doubtful accounts

(11)

(7)

22,03625,094

Buildings

405

409

Accumulated depreciation

(280)

(295)

Buildings, net

124

113

Machinery, equipment and vehicles

579

501

Accumulated depreciation

(533)

(466)

Machinery, equipment and vehicles, net

45

35

Other

163

156

Accumulated depreciation

(116)

(114)

Other, net

46

41

Total property, plant and equipment

217

189

372
372

381
381

8,530

9,029

852

912

Deferred tax assets

2,171

1,578

Guarantee deposits

410

400

Retirement benefit asset

50

49

Other

320

334

Allowance for doubtful accounts

(8)

(7)

Allowance for investment loss

(18)

(17)

Total investments and other assets

12,30812,279Total non-current assets

12,89812,850Total assets

34,93437,945

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

7

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Year Ended March 31, 2021

(Millions of Yen)
As of March 31, 2020

As of March 31, 2021

LIABILITIESCurrent liabilities:
Accounts payable – trade

3,987

3,622

Short-term borrowings

198

201

Accrued expenses

895

792

Income taxes payable

548

1,235

Accrued consumption taxes

629

735

Advances received

3,289

3,361

Provision for bonuses

546

583

Provision for bonuses for directors and other officers

23

60

Provision for loss on construction contracts

330

333

Other

148

176

10,599

11,104

40

117

4,018

3,983

218

246

5

3

4,282

4,351

14,881

15,456

Share capital

1,000

1,000

Capital surplus

4,702

4,702

Retained earnings

16,063

17,780Treasury shares(2,402)(2,402)

Total shareholders’ equity

19,36321,080

Valuation difference on available-for-sale securities

715

1,513

Foreign currency translation adjustment

218

46

Remeasurements of defined benefit plans

(256)

(190)

Total accumulated other comprehensive income

678

1,369

10

39

Total net assets

20,052

22,489Total liabilities and net assets

34,93437,945

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

Accumulated other comprehensive income

Share acquisition rights

8

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Year Ended March 31, 2021

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of Yen)
As of March 31, 2020

As of March 31, 2021

Net sales

43,64239,386

Cost of sales

34,05329,882Gross profit

9,588

9,503

Selling, general and administrative expenses

4,639

4,477

Operating profit

4,948

5,026

Interest income

201

180

Dividend income

92

145

Foreign exchange gains－

181

Compensation income

－

30

Other

54

55

Total non-operating income

348

593

6

3

Foreign exchange losses

176－

Stock transfer agency service fee

15

16

Share of loss of entities accounted for using equity
method

118

306

Other

28

24

Total non-operating expenses

344

351

4,951

5,268

Gain on sales of investment securities

35

97

Gain on reversal of loss on valuation of investment
securities
Gain on reversal of share acquisition rights

7

－

25

0

Other

－

0

Total extraordinary income

68

98

Impairment loss

1,039

－

Loss on valuation of investment securities

3,958

404

35

5

5,033

409

Profit (loss) before income taxes

(13)

4,956

Income taxes-current

970

1,599

Income taxes-deferred

(370)

284

Total income taxes

599

1,883

Profit (loss)

(612)

3,073

－

－

(612)

3,073

Non-operating income

Non-operating expenses
Interest expenses

Ordinary profit
Extraordinary income

Extraordinary losses

Other
Total extraordinary losses

Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent
9SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Year Ended March 31, 2021

(Consolidated Statements of Comprehensive Income)(Millions of Yen)
As of March 31, 2020
Profit (loss)

As of March 31, 2021

(612)

3,073

Valuation difference on available-for-sale securities

639

798

Foreign currency translation adjustment

(1)

(172)

Remeasurements of defined benefit plans, net of tax

25

65

Total other comprehensive income

664

691

51

3,764

51

3,764

－

－

Other comprehensive income

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

10

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Year Ended March 31, 2021

(3) Consolidated Statement of Changes in Equity
FY2020 (April 1, 2019-March 31, 2020)(Millions of Yen)
Shareholders’ equity
Share

CapitalRetained

Treasury

capitalsurplusearnings

sharesBalance at beginning of period

1,000

4,704

18,033

Total
shareholders’equity(2,402)

21,335

Changes during period
Dividends of surplus
Profit (loss) attributable to owners ofparentDisposal of treasury shares(1,357)(1,357)

(612)

(612)

(1)

(1)

Net change of items other thanshareholders’ equity–

Total changes during period－(1)(1,969)－(1,971)

Balance at end of period

1,000

4,702

16,063(2,402)

19,363

Accumulated other comprehensive income
Valuationdifference

Foreignoncurrency

available- translation
for-saleadjustment

securities
Balance at beginning of period

76

219

Remeasure-ments ofdefinedbenefit

Total
accumulate Subscriptio
n rights tod othercomprehensharesTotal net
assets

-sive

plans

income

(282)

14

25

21,375

Changes during period
Dividends of surplus
Profit (loss) attributable to ownersof parent–(1,357)–(612)

Disposal of treasury shares–(1)

Net change of items other thanshareholders’ equity

639

(1)

25

664

(14)

649

Total changes during period

639

(1)

25

664

(14)

(1,322)

Balance at end of period

715

218

(256)

678

10

20,052

11

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Year Ended March 31, 2021

FY2021 (April 1, 2020-March 31, 2021)(Millions of Yen)
Shareholders’ equity
Share

CapitalRetained

Treasury

capitalsurplusearnings

sharesBalance at beginning of period

1,000

4,704

16,063

Total
shareholders’equity(2,402)

19,363

Changes during period
Dividends of surplus
Profit (loss) attributable to owners ofparent(1,357)(1,357)

3,073

3,073

Disposal of treasury shares

(0)

(0)

Net change of items other thanshareholders’ equity–

Total changes during period

－

－

1,716

(0)

1,716

Balance at end of period

1,000

4,702

17,780(2,402)

21,080

Accumulated other comprehensive income
Valuationdifference

Foreignoncurrency

available- translation
for-saleadjustment

securities
Balance at beginning of period

715

218

Remeasure-ments ofdefinedbenefit

Total
accumulate Subscriptio
n rights tod othercomprehensharesTotal net
assets

-sive

plans

income

(256)

678

10

20,052

Changes during period
Dividends of surplus
Profit (loss) attributable to ownersof parent–(1,357)–3,073

Disposal of treasury shares–(0)

Net change of items other thanshareholders’ equity

798

(172)

65

691

28

720

Total changes during period

798

(172)

65

691

28

2,436

Balance at end of period

1,513

46

(190)

1,369

39

22,48912

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Year Ended March 31, 2021

(4) Consolidated Statements of Cash Flows(Millions of Yen)
As of March 31, 2020

As of March 31, 2021

Profit (loss) before income taxes

(13)

4,956

Depreciation

466

145

Impairment loss

1,039

–

Increase (decrease) in retirement benefit liability

91

(35)

Increase (decrease) in provision for retirement benefits for
directors and other officers

36

28

Increase (decrease) in provision for bonuses

(18)

36

(52)

37

Increase (decrease) in allowance for doubtful accounts

(4)

(4)

Increase (decrease) in allowance for investment loss

00Increase (decrease) in provision for loss on construction
contracts

(9)

2

(293)

(326)

Interest expenses

63Commission expenses

13

13

Foreign exchange losses (gains)

176

(181)

Share of loss (profit) of entities accounted for using equity
method118

Cash flows from operating activities

Increase (decrease) in provision for bonuses for directors andother officers

Interest and dividend income

306

Loss (gain) on valuation of investment securities

3,958

404

Loss (gain) on sales of investment securities

(35)

(97)

Loss on retirement of non-current assets

34

4

Decrease (increase) in trade receivables

(463)

(174)

Decrease (increase) in inventories

(90)

86

Increase (decrease) in trade payables

377

(364)

Decrease (increase) in other current assets

(174)

258

Increase (decrease) in other liabilities

(533)

11

Increase (decrease) in accrued consumption taxes

92

105

Other, net

7926

Subtotal

4,801

5,245

Interest and dividends received

278

306

Interest paid

(3)

(2)

Income taxes paid

(1,683)(549)

Net cash provided by operating activities

3,392

4,999

(64)

(35)

–

0

(509)

(103)

(1,064)(349)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
13

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Year Ended March 31, 2021

Proceeds from sales of investment securities

86

447

Loan advances

(188)

(143)

Proceeds from collection of loans receivable

157

41

Payments into time deposits

(312)

(0)

Proceeds from withdrawal of time deposits

1,324

–

Payments for guarantee deposits

(27)

(0)

0

1

Other, net

(23)

7

Net cash used in investing activities

(619)

(135)

－

(0)

(1,357)(1,357)

Commission expenses

(11)

(13)

Other, net

(2)

(2)

(1,371)(1,372)

Effect of exchange rate change on cash and cash equivalents

(27)

(7)

Net increase (decrease) in cash and cash equivalents

1,373

3,483

Cash and cash equivalents at beginning of period

3,997

5,370

Cash and cash equivalents at end of period

5,370

8,854

Proceeds from refund of guarantee deposits

Cash flows from financing activities
Purchase of treasury shares
Dividends paid

Net cash used in financing activities

14

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Year Ended March 31, 2021

(5) Notes to the Consolidated Financial Statements(Notes on the Premise of a Going Concern)
None
Segment Information and Others
Segment Information
1. Summary of Reporting Segments
The SRA Holdings Group’s reporting segments are those for which financial information separate from that of otherunits comprising the SRA Holdings Group can be obtained. Periodic reviews are made of reporting segments by the
Board of Directors for determining the allocation of management resources and assessment of business results.
The Company carries out overall management of subsidiaries engaged in the three businesses of “Systems
Development,” “System Operations and Infrastructure Development” and “Product Sales.” Therefore, the SRA
Holdings Group’s three reporting segments are “Systems Development,” “System Operations and Infrastructure
Development” and “Product Sales.”Principal contents of business in each segment
Business segment

Content of business⚫

Integrated system development ranging from defining requirements todevelopment and maintenance of mainframe-based large systems⚫
Systems Development

System integration covering system planning, development and introduction ofopen systems⚫

Solutions business offering business tools that utilize various products and tools⚫

Open source business that offers technical support for systems through open
source software

System Operations andInfrastructure
Development

Product Sales⚫

Operation management of computer systems and network systems⚫

Overall operation that includes data management and facilities management⚫

Building of network systems⚫

Outsourcing services⚫

Sales of packaged software that includes licensing⚫

Sales of system devices, centering on servers, in integration services⚫

Consulting services related to the introduction of IT

2. Accounting Treatment Method of Net Sales and Income or Losses, Assets, Liabilities and Others for Each Reporting
Segment
The accounting treatment method for the reporting business segments is the same as that described in Principal Items
That Serve as the Basis for Preparing the Consolidated Financial Statements.
Inventories are valued at an amount prior to the writing down of carrying value.
The figures for segment profits are on the basis of operating profit.
Intersegment sales or transfers are based on current market prices.

15

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Year Ended March 31, 2021

3. Information Concerning Net Sales and Income or Losses, Assets, Liabilities and Others for Each Reporting Segment
Fiscal 2020 (from April 1, 2019 to March 31, 2020)(Millions of Yen)
AmountSystemrecorded on

Operations

Systems
Development

Product

andInfrastructure

Sales

Adjustment

Total

*1

amounttheconsolidated
statements ofDevelopment

income *2

Sales(1) Sales to22,104

5,292

16,24543,642－

43,642

11

239

147

398

(398)

－

Total sales

22,116

5,531

16,39244,040(398)

43,642

Operating profit

3,840

1,425

1,020

6,287

(1,338)

4,948

Assets

9,738

1,601

5,317

16,657

18,27734,934

48

9

407

465

0

466

69

21

458

548

1

550

customers(2) Intersegment
sales ortransfers

OthersDepreciation
Increase of
tangible andintangible
assets
Notes:
1. The adjustment amounts are as follows:(1) The segment income adjustment of minus ¥1,338 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) The segment asset adjustment of ¥18,277 million includes intersegment eliminations of minus ¥289 million andcompany-wide assets of ¥18,566 million not apportioned to any reporting segment. Company-wide assets consisted
mainly of the SRA Holdings Group’s surplus operating assets (cash, deposits and marketable securities), short-termloans receivable, long-term invested assets (investment securities and long-term loans receivable) and deferred tax
assets.
2. Depreciation expenses and increases of tangible and intangible assets included depreciation and additions to longterm prepaid expenses, respectively.
3. Segment operating profit is adjusted in operating profit on the consolidated statements of income.

16

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Year Ended March 31, 2021

Fiscal 2021 (from April 1, 2020 to March 31, 2021)(Millions of Yen)
AmountSystemrecorded on

Operations

Systems
Development

Product

andInfrastructure

Total

Sales

Adjustment

theamount*1

consolidated
statements ofDevelopment

income *2

Sales(1) Sales to20,7045,500

13,181

39,386－39,386

54

235

93

383

(383)

－

Total sales

20,758

5,735

13,27539,796(383)

39,386

Operating profit

3,540

1,598

1,308

6,448

(1,421)

5,026

Assets

10,059

1,673

5,160

16,89321,05137,945

52

11

80

144

0

145

28

3

104

136

－

136

customers(2) Intersegment
sales ortransfers

OthersDepreciation
Increase of
tangible andintangible
assets
Notes:
1. The adjustment amounts are as follows:(1) The segment income adjustment of minus ¥1,421 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) The segment asset adjustment of ¥21,051 million includes intersegment eliminations of minus ¥322 million andcompany-wide assets of ¥21,374 million not apportioned to any reporting segment. Company-wide assets consisted
mainly of the SRA Holdings Group’s surplus operating assets (cash, deposits and marketable securities), short-termloans receivable, long-term invested assets (investment securities and long-term loans receivable) and deferred tax
assets.
2. Depreciation expenses and increases of tangible and intangible assets included depreciation and additions to longterm prepaid expenses, respectively.
3. Segment operating profit is adjusted in operating profit on the consolidated statements of income.

17

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Year Ended March 31, 2021

（Per share information）
As of March 31, 2020

As of March 31, 2021

Net assets per share

1,624.61

1,819.78

Earnings (loss) per share(49.68)249.12

Notes:
1. Although there were potentially dilutive shares, diluted earnings per share for the previous consolidated fiscal year
is omitted because a net loss per share was recorded. Diluted earnings per share for the current consolidated fiscal year
is omitted because potentially dilutive shares had no dilutive effects.
2. The basis for calculation of earnings per share and net loss per share is as follows.

As of March 31, 2020

As of March 31, 2021

Earnings per share
Profit (loss) attributable to owners of

(612)

3,073

－

－

(612)

3,073

12,336

12,336

Outline of potential shares not

The 17thThe 17th

included in calculation of current net

subscription rights to shares

subscription rights to sharesincome per share after adjustments

154,000 shares

152,136 sharesparent (million yen)Amount not belonging toordinary shareholders (million yen)
Profit (loss) attributable to ownersof parent in relation to common
stock (million yen)
Average number of shares during the
fiscal year (1,000 shares)

on potential shares due to no dilution

The 18th

effect.

subscription rights to shares
154,400 shares(Significant subsequent events)
Not applicable

18

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Year Ended March 31, 2021

(Additional information)(Accounting estimates concerning the impact of the spread of COVID-19)
Based on information available at the time of the preparation of the consolidated financial statements, the SRA Groupmakes accounting estimates with the belief that the impact of the spread of COVID-19 will be limited. Nonetheless,there are numerous uncertainties regarding the future impact of the spread of COVID-19 and this could have an impact
on the financial condition and business results of the Group from the next consolidated fiscal year onward.
(Regarding the filing of a damage lawsuit)
Software Research Associates, Inc. (a company subsidiary, hereafter SRA) filed a damage lawsuit against Sanko
Estate Co., Ltd., (hereafter Sanko Estate) on August 25, 2015. In response, Sanko Estate filed a lawsuit against SRA
in the Tokyo District Court on October 6, 2015. These cases are currently being litigated. In accordance with theprogress of the lawsuits, we will promptly provide information on any matters requiring disclosure.

19

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Year Ended March 31, 2021

4. Other Information
1. Status of Production, Orders and Sales(1) Production amounts
Production by segment in the fiscal year ended March 31, 2021 is as follows.
Segment information by type of business

As of March 31, 2021
(April 1, 2020-March 31, 2021)

Systems Development (Millions of Yen)

20,472

(8.6)

5,498

4.3

25,971(6.1)

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

% change YoY

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

(2) Purchase amounts
Purchases by segment in the fiscal year ended March 31, 2021 are as follows.
Segment information by type of business

As of March 31, 2021
(April 1, 2020-March 31, 2021)% change YoY

Product Sales (Millions of Yen)

6,766

(28.7)

Total (Millions of Yen)

6,766

(28.7)

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

20

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Year Ended March 31, 2021

(3) Status of orders
Status of orders by segment in the fiscal year ended March 31, 2021 is as follows.
OrdersSegment information by type of business

Order backlog

received(Millions of% change YoY% change YoY

Yen)

Yen)
Systems Development(Millions of

20,682

(6.8)

4,081

(0.5)

5,411

(1.8)

2,343

(3.7)

Product Sales

12,325(25.2)

3,366(20.3)

Total

38,419(13.0)

9,791

(9.0)

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.

(4) Sales amounts
Sales by segment in the fiscal year ended March 31, 2021 are as follows.
Segment information by type of business

As of March 31, 2021
(April 1, 2020-March 31, 2021)% change YoY

20,704

(6.3)

5,500

3.9

Product Sales (Millions of Yen)

13,181(18.9)

Total (Millions of Yen)

39,386(9.8)

Systems Development (Millions of Yen)
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.

21