Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2013
(April 1, 2012 through June 30, 2012)(Prepared pursuant to Japanese GAAP)All financial information has been prepared in accord with accounting principles generally accepted in Japan.
This is a partial English translation of the original Japanese-language document. All information pertains toconsolidated results unless otherwise noted. Information on the basis of presentation of consolidated financial
statements does not appear in this translation.
July 31, 2012
Company name:
Stock exchange listings:
Stock code:
URL:
Representative:
Contact:
Phone:

IT Holdings Corporation
The First Section of the Tokyo Stock Exchange3626
http://www.itholdings.co.jp/e/Susumu Okamoto, President
Norio Maenishi, ExecutiveVice President+81 3-5338-2272

Scheduled dates
Submission of quarterly report:
Commencement of dividend payments:

August 9, 2012-

Supplementary materials to the quarterly results:
Quarterly results presentation:

Available
Available (targeted at institutional investors and analysts)

Figures in millions of yen are rounded down to the nearest million
1. Consolidated Results for the First Quarter of the Fiscal Year Ending March 31, 2013
(April 1, 2012 – June 30, 2012)(1) Consolidated Financial Results
Net sales

Percentages indicate year-over-year changes
Operating income
Recurring profit
Net income

millions of yen%millions of yen%millions of yen%millions of yen%First Quarter, FY2013
72,6207.0
256316(453)－－－First Quarter, FY2012
67,891 (1.6)(2,036)(1,691)(1,360)－－－Note: Comprehensive income: First Quarter FY 2013: (866) million yen (- %), First Quarter FY 2012: (1,770)
million yen (- %)Net income
per share – basic

Net income
per share – diluted

yenyen(5.17)(15.50)－－First Quarter, FY2013
First Quarter, FY2012(2) Consolidated Financial Position

Total assets
millions of yen

Net assets

Net assets pershareEquity ratio

millions of yen%

yen

1,612.16
End-First Quarter, FY2013
294,303
148,698
48.1
1,636.72
End-FY2012
310,003150,965
46.3
For reference:
Shareholders’ equity: End-first quarter FY2013: 141,502 million yen , End-FY2012: 143,658 million yen.

2. Cash Dividends for Shareholders of Common Stock
Record dateor period

End-Q1yen

Cash dividends per share
End-Q2 End-Q3 Year-endyenyenyen

Totalyen

0.00
FY201218.00
18.00
FY2013
FY2013
7.00
14.00
21.00
(forecast)
Note: Revisions from the latest release of dividends forecasts: None1

3. Forecast of Consolidated Results for FY2013 (April 1, 2012 – March 31, 2013)
Percentages indicate year-over-year changes
Net income perOperating
Recurring profit
Net income
Net sales
share – basic
incomemillions of yen%millions of yen%millions of yen

First half of FY 2013
(six months ending162,000
4.75,000 6.85,000Sep. 30, 2012)
Full FY 2013
(year ending Mar. 31, 340,000
3.817,500 12.017,0002013)
Note: Revisions from the latest release of earnings forecasts: None%

millions of yen%

Yen

6.82,000-

22.79

10.4

6,000

181.0

68.36

※ Notes(1) Material reclassifications of subsidiaries during the period: None
(Changes in specified subsidiaries resulting in change in scope of consolidation)
Additions: None:
Exclusions: None
(2) Accounting methods specific to quarterly consolidated financial statements: None
(3) Changes in accounting policy, changes in accounting estimates, and retrospective restatement
1) Changes in accordance with amendments to accounting standards, etc.: None
2) Changes other than noted in 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Common stock issued
1) Issued shares as of period-end (including treasury stock):End-first quarter, FY2013 (June 30, 2012):
87,789,098 shares
End-FY2012 (March 31, 2012):
87,789,098 shares
2) Treasury stock as of period-end:
End-first quarter, FY2013 (June 30, 2012):
17,147 shares
End-FY2012 (March 31, 2012):
16,882 shares
3) Average number of shares (during the respective three-month period):First quarter, FY2013 (ended June 30, 2012): 87,772,147 sharesFirst quarter, FY2012 (ended June 30, 2011): 87,773,589 shares*Quarterly review status
These materials are not subject to the quarterly review procedure requirements of Japan’s Financial Instruments
and Exchange Act. As of this report’s publication, a review of the quarterly consolidated financial statements inaccordance with the Act had not been completed.
Caution on Forward-Looking Statements and Other Important Matters
This report contains forward-looking statements that reflect IT Holdings Corporation (ITHD)’s plans andexpectations. These forward-looking statements are not guarantees of future performance and involve known andunknown risks, uncertainties and other factors that may cause ITHD’s actual results, performance, achievements
or financial position to be materially different from any future results, performance, achievements or financial
position expressed or implied by these forward-looking statements.
For the assumptions underlying the forecasts herein and other notice on the use of earnings forecasts, refer to“(2) Analysis of Consolidated Earnings Forecast” in the “1. Results of Operations” section on page 2 in the
Accompanying Materials.

2Accompanying Material – Contents
1. Results of Operations(1) Analysis of Consolidated Operating Results(2) Analysis of Consolidated Earnings Forecast
2. Consolidated Financial Statements(1) Consolidated Balance Sheets(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income
For the First Quarter
Consolidated Statements of Comprehensive Income
For the First Quarter(3) Notes on the Going-concern Assumption(4) Note on Significant Changes in the Amount of Shareholders’ Equity

12234466788

1. Results of Operations(1) Analysis of Consolidated Operating Results
In the first quarter of fiscal 2013 (April 1, 2012 – June 30, 2012), the outlook for the Japanese economy,
especially the financial industry, remained uncertain due to concerns over the impact of the European sovereign
debt crisis. However, the IT services industry, to which the IT Holdings Group belongs, and in which the overall
trend in IT investment remains patchy, saw some clients resume IT investments, and the number of orders wonby the IT Holdings Group rose as it responded meticulously to customer requirements.
For the first quarter, the Group’s consolidated net sales increased 7.0% versus the same period of the previous
fiscal year to ¥72,620 million. Operating income totaled ¥256 million, compared with a loss of ¥2,036 million in
the year-earlier quarter, and recurring profit amounted to ¥316 million compared with a loss of ¥1,691 million
for the same period of the previous fiscal year. Net loss totaled ¥453 million versus a loss of ¥1,360 for the yearearlier quarter.
Consolidated net sales increased year on year led by strong sales growth in the industrial IT services segment.
The Group posted operating income and recurring profit, compared with an operating loss and a recurring loss inthe same period of the previous fiscal year, as net sales increased and profit levels significantly improved,reflecting the impact of the structural reforms implemented in the previous fiscal year and efforts to rein in largescale unprofitable projects.
First-quarter results by segment are as follows. The sales figures of each segment include inter-segment sales.

1) IT Infrastructure Services
Consolidated sales rose 1.4% year on year to ¥26,980 million and operating income increased 109.6% to ¥1,700
million. Sales increased on the strength of increased demand for the next-generation data center business, which
includes the GDC Gotenyama data center, and profit increased significantly as a result of cost reductions throughpromotion of efficient operation and other measures.

2) Financial IT Services
Consolidated sales in the first quarter increased 1.9% from the same period a year ago to ¥13,618 million, andoperating loss narrowed to ¥202 million from ¥753 million. There were signs of resumption in IT-related
investments at some credit card companies, and profit levels also improved due mainly to the impact of thestructural reforms.

3) Industrial IT Services
Consolidated sales rose 11.6% year on year to ¥31,909 million, and the operating loss narrowed to ¥1,424
million from ¥2,193 million for the same period of the previous fiscal year. A large-scale system development
project for a major manufacturer led the sales increase, while profit levels improved as the Group reined inunprofitable projects and the timings of receiving inspections for some projects were brought forward.

4) OtherConsolidated sales in this segment increased 12.3% year on year to ¥4,516 million, and operating income rose
12.6% to ¥570 million.
Starting April 2012, the IT Holdings Group embarked on implementation of measures under the second mediumterm management plan (from fiscal 2013 through fiscal 2015) with the aim of becoming an IT business that will
implement reforms as a single unit. Under the three basic concepts of “Top-Line Emphasis,” acting “as OneCompany” and being “Enterprising and Bold,” the Group has set the management strategy for fiscal 2013 as“Position fiscal 2013 as the year for achieving a full-scale V-shaped recovery and sales expansion,” “develop asense of unity to achieve Group total optimum” and “carry out business transformation while embracing a shift
to services- and solutions-oriented business,” and has been addressing the management issues.
The Group has launched projects to study the cash management system (CMS) integrated operation and theconsolidated taxation system from the perspective of operating the Group with a sense of unity, and has been
implementing various measures including the establishment of the Brand Committee to promote the concept of“as One Company.”
In June 2012, the Group started offering EINS WAVE, a high-availability wide-area virtual cloud service forcorporate customers by linking together its three data centers in Japan (Tokyo, Hokuriku and Kansai) to leverage
the country’s biggest data center network, which is the IT Holding Group’s strength.
On July 31, 2012, the Group made a decision to reorganize its group formation, making its subsidiary IUK Inc.
into a subsidiary of INTEC Inc., which is an IT Holdings subsidiary, to strengthen the business and improve theefficiency of IUK.

2

(2) Analysis of Consolidated Earnings Forecast
Since consolidated business performance to date has been generally in line with the original forecast made at thebeginning of the fiscal year under review, there is no change to the consolidated earnings forecast announced onMay 10, 2012.

3

3. Consolidated Financial Statements(1) Consolidated Balance Sheets
Items
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Lease receivables and lease investment assets
Marketable securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Property and equipment
Buildings and structures, net
Machinery and equipment, net
Land
Leased assets, net
Other property and equipment, net
Total property and equipment
Intangible assets
Goodwill
Other intangible assets
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets

4

As of March 31, 2012
millions of yenAs of June 30, 2012
millions of yen

41,36564,591
8,942
201
2,633
8,278
209
8,027
8,305
(112)
142,442

45,64342,498
8,753
201
4,017
12,742
210
6,933
7,941
(133)
128,808

58,635
4,360
22,2663,455
6,074
94,792

57,987
4,137
21,8363,689
6,715
94,3663,471
14,047
17,5193,054
13,763
16,81828,693
8,597
19,986(2,028)55,248167,560
310,003

27,984
10,404
17,919(1,998)54,310165,495
294,303

ItemsLiabilities
Current liabilities
Notes and accounts payable
Short-term borrowings
Corporate bonds (redeemed within one year)
Income taxes payable
Accrued bonuses to directors and employees
Other allowances
Other current liabilities
Total current liabilities
Non-current liabilities
Long-term debt
Lease obligations
Accrued retirement benefits to employees
Accrued retirement benefits to directors
Deferred tax liabilities
Deferred tax liabilities from revaluation of land
Other non-current liabilities
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Additional paid-in capitalRetained earnings
Less treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gains on other securities
Revaluation of land
Foreign currency translation adjustments
Total accumulated other comprehensive income
Stock acquisition rights
Minority interests
Total net assets
Total liabilities and net assets

5

As of March 31, 2012
millions of yen

As of June 30, 2012
millions of yen

17,917
23,126100
2,341
11,115322
28,141
83,065

12,90823,509
100
910
5,924
132
28,81472,29953,288
4,723
12,359107503869
4,120
75,972
159,038

51,003
5,033
11,900
103
494
732
4,037
73,305
145,604

10,00186,78747,673(25)
144,436

10,00186,78745,888(25)
142,651

1,210(1,718)
(270)
(778)
38
7,267
150,965
310,003

1,030(1,967)(212)(1,149)29
7,166
148,698
294,303(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income
First Quarter FY2012(Apr. 1 – Jun. 30, 2011)
Items
millions of yen
Net sales
67,891
Cost of sales
58,129Gross profit
9,761
Selling, general and administrative expenses
11,798Operating profit (loss)(2,036)
Non-operating income
Interest income
21
Dividends income
462
Other
266
Total non-operating income
750
Non-operating expenses
Interest expenses
250
Equity in losses of non-consolidated subsidiaries and76
affiliates
Other
78
Total non-operating expenses
405
Recurring profit (loss)(1,691)
Extraordinary income
Gain on sale of investment securities
0Gain on extinguishment of tie-in shares
41
Other
6
Total extraordinary income
49
Extraordinary loss
Impairment loss
8
Merger expenses
159
Other
138
Total extraordinary loss
306
Income (loss) before income taxes and minority interests(1,948)
Income taxes: current
1,158
Income taxes: deferred(1,730)Total income taxes(572)
Income (loss) before minority interests(1,376)
Minority interests in earnings (losses) of consolidated(16)
subsidiaries
Net loss(1,360)6First Quarter FY2013(Apr. 1 – Jun. 30, 2012)
millions of yen
72,62061,464
11,156
10,899
256
6
449
215
670
208
96
305
610
316
69－
170
434－
96
530
(143)
1,042
(668)
373
(517)
(63)
(453)

Consolidated Statements of Comprehensive Income
Items
Income (loss) before minority interests
Other comprehensive income
Net unrealized gains on other securities
Difference in revaluation of land
Foreign currency translation adjustments
Share of other comprehensive income of associates
accounted for using the equity method
Total other comprehensive income
Comprehensive income
Components:
Comprehensive income attributable to owners of theparent
Comprehensive income attributable to minority
interests

7

First Quarter FY2012First Quarter FY2013(Apr. 1 – Jun. 30, 2011) (Apr. 1 – Jun. 30, 2012)millions of yen
millions of yen(1,376)
(517)
(450)
－55

(183)
(248)
79

0

3

(393)
(1,770)

(349)
(866)

(1,759)

(825)

(11)

(41)

(3) Notes on the Going-concern Assumption
Not applicable(4) Note on Significant Changes in the Amount of Shareholders’ Equity
Not applicable8