Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2012
(April 1, 2011 through June 30, 2011)(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.
August 3, 2011
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 3-6738-7557

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

August 10, 2011-

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, 2012
(April 1, 2011 – June 30, 2011)(1) Consolidated Financial Results
Net sales
millions of yen

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

millions of yen%

millions of yen%

millions of yen%

First Quarter, FY2012
67,891 (1.6)(2,036)(1,691)(1,360)－－－First Quarter, FY2011
69,0074.8(2,142)(1,848)(2,817)－－－
Note: Comprehensive income: First Quarter FY 2012: (1,770) million yen (- %), First Quarter FY 2011: (3,949)
million yen (- %)Net income
per share – basic

Net income
per share – diluted

yen

yen

(15.50)(32.10)－－First Quarter, FY2012First Quarter, FY2011(2) Consolidated Financial Position
Total assets

Net assets

millions of yen

Equity ratio

millions of yen%

End-First Quarter, FY2012
290,595
147,443
48.2
End-FY2011
301,076
151,110
47.7
For reference:
Shareholders’ equity: End-first quarter FY2012: 140,093 million yen , End-FY2011: 143,646 million yen.
2. Cash Dividends for Shareholders of Common Stock
Record dateor period

End-Q1yen

Cash dividends per share
End-Q2 End-Q3 Year-end
yen

yen

yen

Total
yen

12.00
FY201120.00
32.00
FY2012FY2012
0.00
18.00
18.00
(forecast)
Note: Revisions from the latest release of dividends forecasts: None

3. Forecast of Consolidated Results for FY2012 (April 1, 2011 – March 31, 2012)
Percentages indicate year-over-year changes
OperatingRecurring
Net income per
Net sales
Net income
incomeprofitshare – basic
millions of yen% millions of yen% millions of yen% millions of yen

First half of FY 2012
(six months ending
151,500 (1.6)
3,000 (35.7)
2,800 (41.2)
Sep. 30, 2011)
Full FY 2012
(year ending Mar. 31,
308,000 (4.7)
11,000 (14.2)
10,500 (16.8)
2012)
Note: Revisions from the latest release of earnings forecasts: None%

Yen

1,000 (0.4)

11.39

3,500 (41.5)

39.88

4. Other(1) Material reclassifications of subsidiaries during the period: Yes(Changes in specified subsidiaries resulting in change in scope of consolidation)
Additions: None:
Exclusions: Two companies: SORUN CORPORATION, UFIT Co., Ltd.
(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, FY2012 (June 30, 2011):
87,789,098 shares
End-FY2011 (March 31, 2011):
87,789,098 shares
2) Treasury stock as of period-end:
End-first quarter, FY2012 (June 30, 2011):
15,691 shares
End-FY2011 (March 31, 2011):
15,385 shares
3) Average number of shares (during the respective three-month period):First quarter, FY2012 (ended June 30, 2011): 87,773,589 sharesFirst quarter, FY2011 (ended June 30, 2010): 87,765,572 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 and unknown
risks, uncertainties and other factors that may cause ITHD’s actual results, performance, achievements orfinancial 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

3Accompanying Material – Contents
1. Results of Operations(1) Analysis of Consolidated Operating Results(2) Analysis of Consolidated Earnings Forecast
2. Other Information(1) Changes affecting the status of significant subsidiaries during the period (scope of
consolidation)
3. Consolidated Financial Statements(1) Consolidated Balance Sheets(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeConsolidated 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(5) Material Subsequent Events

1

2
2
3
3
3
4
4
6

6
7
8
8
8

1. Results of Operations(1) Analysis of Consolidated Operating Results
The first quarter of fiscal 2011 (April 1, 2011 – June 30, 2011) was overall a severe period for the Japanese
economy due to the impact of the Great East Japan Earthquake in March 2011, including restrictions onelectrical power usage. In the information services industry, a severe business environment persisted without
significant change, as some companies continued to take a cautious approach to IT investment. During thequarter, however, there emerged a number of companies taking a more forward-looking approach towards IT
investment, and orders by the IT Holdings Group rebounded as a result.
Amid this business environment, the IT Holdings Group has set forth a management strategy for fiscal 2012
underpinned by four major initiatives we began to tackle in the first quarter: Top-line expansion and growth ofthe contract outsourcing business; Firm establishment of a new Group formation; Strengthening of the Groupmanagement foundation and profit structure; Preparation for shift to services- and solutions-oriented businessthrough new investments.
For the first quarter, the IT Holdings Group’s consolidated net sales decreased 1.6% versus the same period in
fiscal 2011 to ¥67,891 million. Operating loss totaled ¥2,036 million, compared to a loss of ¥2,142 million a year
ago, while recurring loss totaled¥1,691 million compared with the previous year’s loss of ¥1,848 million. Net
loss totaled ¥1,360 million versus a loss of ¥2,817 million a year ago.
Net sales declined in the quarter due mainly to lower demand for financial IT services, which outweighed
growing sales of industrial IT services. The operating and recurring losses narrowed compared to the first quarterof last year as a result of aggressive cost reductions, which offset the cost associated with the opening of thenext-generation data center GDC Gotenyama in April 2011. The lower net loss is attributed to the booking ofasset retirement obligations (an extraordinary loss of ¥2,199 million) in the first quarter of the previous year.
The IT Holdings Group operates data centers in locations resistant to natural disasters and has designed manyof its data centers to be earthquake-proof (GDC Gotenyama and INTEC Manyo Square among them). In
addition, the data centers are outfitted with the latest energy-conservation technologies to reduce theirenvironmental burden to a minimum. Through this network of sophisticated data centers, the IT Holdings Groupwill provide high-quality IT services for the cloud computing era and contribute to the recovery of customers’
business and their enhanced management efficiency.
First-quarter results by segment are as follows.
Beginning with the first quarter of fiscal 2012, the IT Holdings Group has reclassified its business into new
segments based on the type of services and industry, replacing the previous segmentation based on groupings ofconsolidated subsidiaries. The purpose of the reclassification is to standardize management and accounting
systems at companies under the Group umbrella, and through the visualization of performance and status at eachcompany, facilitate lateral implementation of management practices throughout the Group. Sales in each segment
include inter-segment sales, and the previous year’s figures have been reclassified into the new segments forcomparison purposes.

1) IT Infrastructure Services
This business provides self-administered computer utility or system operation services through large IT facilities,
including data centers. Consolidated sales declined 2.5% from the same period a year ago to ¥26,611 million andoperating profit declined 53.4% to 811 million yen. The sales and profits declines were mainly the result of
upfront investments for the opening of the GDC Gotenyama data center in April 2011.

2) Financial IT Services
This business supports clients in their efforts to make greater use of IT in their operations and in the execution of
their business activities with IT expertise and business know-how specific to the finance industry. Consolidated
sales in the quarter declined 4.3% from the same period a year ago to ¥13,360 million, while the operating loss
narrowed to ¥753 million from ¥1,431 million as a result of efforts to lower subcontracting costs and otherexpenses.

3) Industrial IT Services
This business supports clients in their efforts to make greater use of IT in their operations and in the execution of
their business activities with IT expertise and business know-how in areas other than finance, namely industrial
and public sectors. Consolidated sales increased 2.9% year on year to ¥28,597 million. The operating loss
narrowed to ¥2,193 million from ¥2,382 million the previous year, an improvement of only about ¥180 million
due to the emergence of unprofitable projects. A provision against the losses from these unprofitable projects has
been made.

24) Other
Leases and other incidental business generated from the provision of information systems. Consolidated sales inthis segment declined 5.6% year on year to ¥4,020 million, and operating income increased 36.9% to ¥506
million.
Consolidated subsidiary TIS, Inc., which merged with SORUN CORPORATION and UFIT Co., Ltd. in April
2011, has made the early improvement of business performance and maximization of merger synergies its top
management priorities. The company’s structural reform initiatives include a comprehensive overhaul of thepersonnel structure and work assignments. To complete this initiative, the company has begun a special job
transfer support program. More about the program can be found in the section entitled Material Subsequent
Events on page 8.

(2) Analysis of Consolidated Earnings Forecast
At the present time, consolidated sales, operating income and other performance measures are generally in linewith the original estimates made at the beginning of the fiscal year, and therefore there is no change to theconsolidated estimates announced May 11, 2011.
IT Holdings plans to recognize an extraordinary loss to cover expenses related to the special job transfer
support program being carried out by TIS, Inc. At the present time, however, the number of employees retiringunder the program is unknown, and the financial impact cannot be estimated. IT Holdings will make anannouncement regarding the financial impact as soon as it is known.
2. Other Information(1) Changes affecting the status of significant subsidiaries during the period (scope of consolidation)
Consolidated subsidiaries SORUN CORPORATION and UFIT Co., Ltd. were absorbed into consolidated
subsidiary TIS, Inc. through an absorption-type merger on April 1, 2011, and therefore they are no longer under
the scope of consolidation.

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, 2011
millions of yen

As of June 30, 2011
millions of yen

36,72959,040
8,710
301
2,295
6,554
197
7,741
7,085
(199)
128,455

40,18537,434
8,558
201
2,998
12,076
195
10,362
8,458(168)
120,304

60,2305,009
22,4682,539
5,209
95,45759,437
4,314
22,4682,838
5,767
94,825

5,516
13,073
18,5894,795
13,437
18,23331,794
8,115
20,995(2,331)58,573
172,620
301,076

30,956
7,511
21,102(2,339)57,231
170,291
290,595

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
Corporate bonds
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 capital
Retained 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, 2011
millions of yen

As of June 30, 2011
millions of yen

14,944
14,8007,500
3,401
11,041464
20,93873,09010,78015,741
7,500
1,148
6,236
388
25,771
67,567100
55,054
3,981
11,509
244
674
993
4,317
76,875
149,965100
53,237
4,115
12,024
195
665
993
4,253
75,585
143,152

10,00186,78847,298(24)
144,062

10,00186,78844,143(24)
140,908

1,729(1,841)
(303)
(415)
29
7,434
151,110301,076

1,287(1,841)
(260)
(814)
29
7,320
147,443
290,595

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
First Quarter FY2011First Quarter FY2012(Apr. 1 – Jun. 30, 2010) (Apr. 1 – Jun. 30, 2011)
Items
millions of yen
millions of yen
Net sales
69,007
67,891
Cost of sales
58,86858,129Gross profit
10,138
9,761
Selling, general and administrative expenses
12,281
11,798Operating loss
(2,142)(2,036)
Non-operating income
Interest income
921
Dividends income
435
462
Other
248
266
Total non-operating income
694
750
Non-operating expenses
Interest expenses
268
250
Equity in losses of non-consolidated subsidiaries and69
76
affiliates
Other
62
78
Total non-operating expenses
400
405
Recurring loss
(1,848)(1,691)
Extraordinary income
Gain on sale of investment securities
1190Gain on extinguishment of tie-in shares
41
－
Other
57
6
Total extraordinary income
176
49
Extraordinary loss
Merger expenses
159－
Effect of adoption of new accounting standards for
2,199－
asset retirement obligations
Other
288
146
Total extraordinary loss
2,487
306
Loss before income taxes and minority interests(4,159)(1,948)
Income taxes: current
1,083
1,158
Income taxes: deferred(2,091)(1,730)Total income taxes(1,008)(572)
Loss before minority interests(3,151)(1,376)
Minority interests in loss of consolidated subsidiaries
(334)
(16)
Net loss(2,817)(1,360)6

Consolidated Statements of Comprehensive Income
Items
Income before minority interests
Other comprehensive income
Net unrealized gains on other securities
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 theparentComprehensive income attributable to minority
interests

7

First Quarter FY2011(Apr. 1 – Jun. 30,
2010)
millions of yen(3,151)First Quarter FY2012(Apr. 1 – Jun. 30, 2011)
millions of yen(1,376)

(812)
8

(450)
55

6

0

(798)
(3,949)(393)(1,770)(3,556)(1,759)

(392)

(11)

(3) Notes on the Going-concern Assumption
Not applicable(4) Note on Significant Changes in the Amount of Shareholders’ Equity
Not applicable(5) Material Subsequent Events
It was resolved at a meeting of the Board of Directors of TIS, Inc., an IT Holdings’ subsidiary, on July 4, 2011,that TIS would implement a special career-change support program in conjunction with corporate restructuring.
I. Reason for Implementing Special Career-Change Support Program
The merger with SORUN CORPORATION and UFIT Co., Ltd., in April 2011 provided TIS with the perfectopportunity to pursue corporate structural reforms prioritizing a swift return to profitability and efforts to drawout and maximize the inherent merger effect. Management felt that a sweeping review of the personnel structure
and assignment of human resources would be indispensable for TIS to overcome the current uncertainties thatcharacterize the operating environment and would underpin growth and sustained corporate value over the
medium term. Toward this end, management opted for a special career-change support program, which is ineffect an early retirement plan.
II. Outline of the Special Career-Change Support Program(1) Target number
About 400 (Number of employees at July 1, 2011 was 7,926)(2) Eligibility
Full-time employees at least 40 years old as of September 30, 2011
(3) Application period
July 25, 2011 through August 22, 2011
(4) Date of retirement
September 30, 2011
Personnel retiring under this program will receive a retirement allowance as well(5) Otheras special severance pay. In addition, TIS will engage a rehiring support company
to offer support for those individuals requiring help in finding new employment.
III. Impact on Income and Loss
The outflow of funds related to special severance pay and rehiring support will be recorded as an extraordinary
loss, although the impact on income and loss cannot be estimated at the current time since the number ofvolunteers for early retirement under this program is not yet known.

8

(For Reference) Supplementary Information for the First Quarter of the Fiscal Year Ending March 31, 2012
1. Net Sales and Operating income (loss) by Business Segment(millions of yen)

FY2012
Consolidated
N t salesNetlYoY change

IT Infrastructure Services
Composition ratio
YoY change

Financial IT Services
Compositionpratio
YoY change

Industrial IT Services
Composition ratio
Y Y change
YoYhOther Businesses
Composition ratio
YoY changeIntercompany elimination /adjustments

Operating income (loss)
CompositionCo
pos t o ratioat o
YoY change

IT Infrastructure Services

First quarter(A)
67 891
67,891First half targets(B)
151 500
151,500

-1.6%
1 6%

-1.6%
1 6%

26 611
26,61154 70054,700

39.2%
39
2%
-2.5%

36.1%
36
1%
-1.5%

13,36032,900

19.7%
-4.3%

21.7%
-5.8%

28,59764,700

42.1%
+2 9%
+2.9%

42.7%
+0 8%
+0.8%

4 020
4,020

8 200
8,200

55.9%
9%
-5.6%

5.4%
5
4%
-1.4%

49 0%
49.0%

(4,698)(2,036)(9,000)3,000-(19,100)
11,000-(3.0%)-

2.0%.0%-35.7%-

3.6%-14.2%

-

811

2,100

Composition ratio
Y Y change
YoY
h

3.0%
-53.4%
53 4%

3.8%-45.7%
45 7%

(753)

800

Composition ratio
YoY change(5.6%)
(5
6%)
-

2.4%
2
4%
-26.1%
26 1%

Fi
Financial
i l IT Services
S i
Industrial IT Services

Progress ratio(A / B)
44.8%%

Full year targets((C))
308 000
308,000-4.7%
4 7%

Progress ratio(A / C)
22.0%%

109 700
109,700
48 6%
48.6%

35.6%
35
6%
-1.1%

24 3%
24.3%

66,400
40.6%

21.6%
-8.8%

20.1%

134,500
44 2%
44.2%

43.7%
-4.7%
4 7%

21 3%
21.3%

16 50016,500
5 4%
5.4%
-0.6%

24 4%
24.4%

5,600
38 6%
38.6%

5.1%
-31.1%
31 1%

14 5%
14.5%

2 000
2,000
-

3 0%
3.0%
-32.6%
32 6%-(2 193)(2,193)400

Composition ratio
YoY change(7.7%)
(7
7%)
-

0.6%
0
6%
-

507

600

Compositionpratio
YoY change

12.6%+36.9%

7.3%
-7.0%

84.3%

7.9%
-1.1%

38.9%

(408)

(900)

-

(1,800)-

Other Businesses
Intercompany elimination /adjustments

3 900
3,900
-

2 9%
2.9%
+60.4%-

1,300( illi(millions
off yen))

FY2011
C
Consolidatedlid d
Net sales
YoY change

IT Infrastructure Services
Composition
Ci i ratioi
YoY change

Financial IT Services
Composition ratio
YoY changegIndustrial IT Services
Composition ratio
Y Y change
YoYhOther Businesses
Composition ratio
YoY changeIntercompany
e co pa y eeliminationa o /adjus/adjustmentse sOperating income (loss)
Composition ratio
Y Y change
YoYh

IT Infrastructure
Infrastr ct re Services
Ser ices
Composition ratio
YoY change

Financial IT Services
Compositionpratio
YoY change

I dIndustrial
i l IT Services
S i
CompositionC
iti ratioti
YoY change

Other Businesses
Composition ratio
YoY changeIntercompany elimination /adjustments

First quarter
Fi(A)
69,007,Fi half
Firsth lf targets(B)
154,009
,

+4.8%

+4.8%

27,29355,528

39.6%
39
6%
-

36.1%
36
1%
-

13 958
13,95834 941
34,941

20.2%
-

22.7%
-

27,803,64,203
,

40.3%
-

41.7%
-

4 260
4,260

8 313
8,313

66.2%
2%
-

5.4%
5
4%
-

(4,308)((2,142),)(8,976)
4,667,667(3.1%)-

3.0%-19.6%
19 6%

1 742
1,742

3 864
3,864

66.4%
4%
-

7.0%
7
0%
-

(1,431)

1,082((10.3%))
-

3.1%
-

Progress ratioPi(A / B)
44 8%
44.8%
49 2%
49.2%
39.9%
43 3%
43.3%
51.2%
45 1%
45.1%
-

(2 382)(2,382)(80)(8.6%)(8
6%)-(0.1%)
(0
1%)
-

370

645

8.7%
-

7.8%
-

57.4%

(440)

(844)

-

-

F ll year targets
Full
((C))
323,173,+3.0%

110,923
34.3%
34
3%
-

72 81572,81522.5%-

141,137,
43.7%-

16 596
16,5965.1%
51%-(18,298)
12,818,8 8
4.0%-19.9%
19 9%

8 127
8,127
7.3%
7
3%
-

2,969
4.1%
-

2 432
2,432
1.7%
1
7%
-

1,314
7.9%
-

(2,024)Progress ratioPi(A / C)
21 4%
21.4%
24 6%
24.6%
19.2%
19 7%
19.7%
25.7%
21 4%
21.4%
28.2%
-

Earnings forecasts and other forward-looking statements above are based on information available to the Company at the time of preparation and certain assumptions that itb libelievesto beb reasonable.
bl ActualAl results
l may diffdiffer materially
i ll ffrom thosehexpressedd or iimpliedli d bby fforward-looking
d l ki statements ddue to variousifactors.
f
intra segment sales.
sales* Net sales for each segment include intra-segment*

9(For Reference) Suoolementary Information for the First Quarter of the Fiscal Year Ending March 31, 2012
2. Orders for Software Development( millions of yen)

Consolidated

FY2011First quarter

FY2012First quarterYoY change
6,399

Orders received during the term

38,51944,918Financial IT Services

13,143

16,359

34.1%

36.4%

24.5%

25,37628,559

3,183

65.9%

63.6%

Composition ratio

Industrial IT Services
Composition ratio+16.6%

3,216
12.5%

Order backlog at period-end

57,02861,8304,802

Financial IT Services

25,222

22,738(2,484)Composition ratio

Industrial IT Services
Composition ratio

+8.4%

44.2%

36.8%

(9.8%)

31,80639,092

7,286

55.8%

63.2%

22.9%

* Orders for IT Infrastructure Services are not stated in this report because such services are conducted on an ongoing basis.

10